With this it will be convenient to consider:
Clause stand part.
Amendment 19, in clause 2, page 2, line 14, at end insert—
“(1AA) Before making a direct award of a public service contract to a public sector company under subsection (1A), the relevant franchising authority must provide information to the Office of Rail and Road on the public sector company’s ability to become responsible for the provision of the relevant passenger railway services.
(1AB) The information provided under subsection (1AA) must include an overview and analysis of the capacity of the public sector company to provide the relevant services while maintaining or improving existing service provision.
(1AC) Following the receipt of the information provided under subsection (1AA), the Office of Rail and Road must publish an opinion on whether it is reasonably practicable for the public sector company to provide, or secure the provision of, the relevant passenger railway services.”
Amendment 13, page 2, line 17, at end insert—
“(1BA) Every contract made in accordance with subsection (1A) shall place a duty on the public sector company to encourage and invest in innovation across all aspects of its operations, including but not limited to—
(a) operational efficiency;
(b) fares and ticketing;
(c) stations and onboard services;
(d) passenger information; and
(e) digital transformation.”
Amendment 14, page 2, line 17, at end insert—
“(1BA) Every contract made in accordance with subsection (1A) shall place a duty on the public sector company to consider the needs of—
(a) passengers;
(b) residents of rural areas;
(c) residents of areas underserved by the rail network; and
(d) the wider rail network
when considering making changes to existing service levels.”
Amendment 1, page 2, line 22, leave out subsection (3).
Amendment 6, page 2, line 22, at end insert—
“30ZA Impact on provision of rolling stock
(1) The Secretary of State must, within six months of the coming into force of the Passenger Railway Services (Public Ownership) Act 2024, lay before Parliament a report on the impact of the awarding of public service contracts to public sector companies under section 30(1A) on the provision of rolling stock by rolling stock leasing companies.
(2) The Secretary of State must consult with other franchising authorities before finalising a report under subsection (1).”
Amendment 7, page 2, line 22, at end insert—
“30ZA Impact on procurement
(1) Within six months of the coming into force of the Passenger Railway Services (Public Ownership) Act 2024, the Secretary of State shall publish details of the Government’s proposed approach to procurement once passenger rail services are provided by public sector companies under public service contracts awarded under section 30(1A) and the impact of the awarding of such contracts to public sector companies on procurement processes.
(2) Any publications relating to the Government’s proposed approach to procurement under subsection (1) should include details of the approach towards—
(a) technological development;
(b) the management of demand and supply;
(c) the supply chain;
(d) future sectoral planning.”
This amendment would require the Secretary of State to publish details of the Government’s proposed approach to procurement and the impact of the Bill on procurement processes.
Amendment 8, page 2, line 22, at end insert—
“30ZA Independent financial monitoring of public sector companies
(1) The Secretary of State must, within three months of the coming into force of the Passenger Railway Services (Public Ownership) Act 2024, instruct an independent body to conduct monitoring of the financial management of any public sector company with whom a direct award of a public service contract is made under section 30(1A).
(2) For the purposes of subsection (1), “monitoring of the financial management” includes the auditing of accounts, the review of spending efficiency, and the making of recommendations to improve cost-effectiveness.”
Amendment 9, page 2, line 22, at end insert—
“30ZB Report on cost of contracts with public sector companies
(1) The Secretary of State must, within three months of the coming into force of the Passenger Railway Services (Public Ownership) Act 2024, instruct an independent body to report on the total cost to the Government of contracts awarded in accordance with section 30(1A).
(2) The first report under this section must be laid before Parliament within twelve months of the first award of a public sector contract in accordance with section 30(1A), with subsequent reports to be laid annually.
(3) Any report published under this section must include consideration of any liabilities previously held by franchises which are now public sector liabilities.”
Amendment 10, page 2, line 22, at end insert—
“30ZC Annual reporting of performance of publicly-owned train operating companies
(1) The Secretary of State must lay before Parliament an annual report on the performance of public sector companies to whom public service contracts are made under section 30(1A).
(2) An annual report published under subsection (1) shall include details of a company’s—
(a) financial performance;
(b) revenue growth;
(c) cost control;
(d) innovation;
(e) service quality metrics;
(f) customer satisfaction metrics; and
(g) value for money.
(3) The first annual report under this section must be laid before Parliament within twelve months of the first award of a public sector contract in accordance with section 30(1A).”
Amendment 11, page 2, line 22, at end insert—
“30ZD Performance-based assessment of publicly-owned train operating companies
(1) Public sector companies with whom public service contracts are made in accordance with section 30(1A) are to be subject to performance-based assessments in relation to their management of the relevant passenger railway services.
(2) Performance-based assessments of public sector companies under subsection (1) are to be conducted by an independent body instructed by the Secretary of State.
(3) In conducting a performance-based assessment the independent body must assess the public sector company against published targets in relation to—
(a) the punctuality of services;
(b) customer satisfaction;
(c) revenue and passenger growth; and
(d) operational efficiency.
(4) Every contract made in accordance with section 30(1A) must place duties on relevant public sector companies—
(a) to prepare performance improvement plans where published targets are assessed under this section as not being met;
(b) to place limitations on the remuneration of senior managers while a performance improvement plan is in force.”
Amendment 12, page 2, line 22, at end insert—
“30ZE Impact on performance and efficiency of the UK rail network
(1) The Secretary of State must, within five years of the coming into force of the Passenger Railway Services (Public Ownership) Act 2024, instruct an independent body to conduct a review of the impact of the Act on the performance and efficiency of the UK rail network.
(2) A report on the findings of the review must be laid before Parliament.”
Amendment 15, page 2, line 22, at end insert—
“30ZF Impact on open access operators
The Secretary of State must, within twelve months of the coming into force of the Passenger Railway Services (Public Ownership) Act 2024, lay before Parliament a report on the impact of the awarding of public service contracts to public sector companies under subsection 30(1A) on open access operators in the UK.”
Amendment 16, page 2, line 22, at end insert—
“30ZG Impact on exemption of passenger services
(1) The Secretary of State must, within twelve months of the coming into force of the Passenger Railway Services (Public Ownership) Act 2024, lay before Parliament a report on the
impact of sections 25A and 30, as amended by the Passenger Railway Services (Public Ownership) Act 2024, on the exemption of passenger services under section 24.
(2) A report under subsection (1) must include whether the coming into force of the Passenger Railway Services (Public Ownership) Act 2024—
(a) has made, or is expected to make, it more or less likely for an application for an exemption to be made to an appropriate designating authority;
(b) has made, or is expected to make, it more or less likely for an application for an exemption to be granted by an appropriate designating authority;
(c) has made, or is expected to make, any difference to the basis on which decisions as to the granting or refusing of applications for exemptions will be made by the appropriate designating authorities.”
Amendment 17, page 2, line 22, at end insert—
“30ZH Independent body to advise on pay and terms and conditions of employment for employees of public sector companies
(1) The Secretary of State must, within three months of the coming into force of the Passenger Railway Services (Public Ownership) Act 2024, establish an independent body with responsibility for—
(a) providing advice to Government on the—
(i) remuneration, and
(ii) terms and conditions of employment
of employees of the public sector companies providing passenger railway services under a contract awarded in accordance with section 30(1A);
(b) advising the Government on value for money during the negotiation of the terms and conditions of employment of employees of the public sector companies providing passenger railway services under a contract awarded in accordance with section 30(1A); and
(c) preparing an annual report to be laid before Parliament by the Secretary of State on the terms and conditions of employment of employees of the public sector companies providing passenger railway services under a contract awarded in accordance with section 30(1A).
(2) Advice provided in accordance with subsections (1)(a) and (b) shall be based on annual investigations of working practices conducted by the independent body and consider—
(a) value for money;
(b) affordability;
(c) domestic and international comparators;
(d) the future of the rail network, including the modernisation of working practices.
(3) Advice provided in accordance with subsection (1)(b) shall include advice on whether any conflicts of interest exist between any Government Minister and any union involved in the negotiation of the terms and conditions of employment, and how any such conflicts should be managed.
(4) An annual report under subsection (1)(c) shall include a comparison with the terms and conditions of employment under the franchise which provided the relevant passenger railway services prior to the awarding of a contract in accordance with section 30(1A).
(5) The first annual report under subsection (1)(c) must be laid before Parliament within twelve months of the first award of a public sector contract in accordance with section 30(1A).”
Amendment 22, page 2, line 22, at end insert—
“30ZA Review of impact on exemption of passenger services
(1) The Secretary of State must, within one year of the coming into force of the Passenger Railway Services (Public Ownership) Act 2024, conduct a review of the impact of that Act on the exemption of passenger services under section 24 of this Act.
(2) A review conducted under subsection (1) must consult—
(a) the Scottish Ministers;
(b) the Welsh Ministers; and
(c) English combined authorities
on their willingness and ability to make an application to the appropriate designating authority for the grant of an exemption from designation under section 23(1) for the purposes of applying for or being awarded a public service contract under section 30(1A).
(3) The Secretary of State must lay a report on the findings of the review before Parliament.”
Amendment 2, page 3, line 23, after “Scottish Ministers” insert—
“or an elected public body”.
This amendment, and accompanying Amendments 3, 4 and 5, would expand the definition of “public sector company” to enable public service contracts to run passenger railway services to be awarded to public sector companies owned by local elected public bodies.
Amendment 3, page 3, line 25, after “Ministers” insert—
“or an elected public body”.
See explanatory statement for Amendment 2.
Amendment 4, page 3, line 27, after “Ministers” insert—
“or an elected public body”.
See explanatory statement for Amendment 2.
Amendment 5, page 3, line 27, at end insert—
“(ba) ‘elected public body’ means a body which is—
(i) a mayoral combined authority;
(ii) a combined authority; or
(iii) a unitary, county, district or borough council
or which is composed of more than one of the bodies listed above.”
This amendment in consequential on Amendments 2, 3 and 4.
Amendment 20, page 3, line 32, at end insert—
“30D Independent body to provide advice on proposed contracts
(1) The Secretary of State shall, within three months of the coming into force of the Passenger Railway Services (Public Ownership) Act 2024, establish an independent body with responsibility for advising the Secretary of State on contracts proposed to be made in accordance with section 30(1A).
(2) The independent body must provide advice to the Secretary of State, including recommendations as to how or whether to proceed with the agreeing of the contract, within three months of a request for such advice being made by the Secretary of State.
(3) Should the Secretary of State wish to proceed with the agreeing of a contract—
(a) having received advice against proceeding with the agreeing of the contract from the independent body; or
(b) without taking such steps as were recommended by the independent body,
the Secretary of State must make a statement in Parliament of the reasons for doing so.
(4) The Secretary of State shall consult other franchising authorities before finalising proposals for the establishment of the independent body under subsection (1).”
Amendment 21, page 3, line 32, at end insert—
“30D Annual report on ticketing effects of public service contracts
(1) The Secretary of State shall lay before Parliament an annual report on the effect of public sector contracts awarded in accordance with section 30(1A) on—
(a) ticket pricing,
(b) tap-in, tap-out options,
(c) single-leg pricing,
(d) digital season tickets,
(e) compensation for delays and cancellations,
(f) ticketing interoperability with—
(i) other train operators, and
(ii) bus and light rail system operators.
(2) The Secretary of State shall consult other franchising authorities before finalising a report under subsection (1).
(3) The first annual report under this section must be laid before Parliament within twelve months of the first award of a public sector contract in accordance with section 30(1A).
(4) Each subsequent annual report must be laid before Parliament before the end of July in each subsequent calendar year.”
Clauses 2 to 4 stand part.
The schedule.