Avanti West Coast Contract Renewal

(Urgent Question): To ask the Secretary of State for Transport if she will make a statement on her decision to renew the contract for Avanti West Coast to provide passenger services on the west coast main line.

On 7 October, a short-term contract was entered into with the incumbent operator for the West Coast Partnership. The contract extends the delivery of the West Coast Partnership and Avanti West Coast business for six months until 1 April 2023. This gives Avanti a clear opportunity to improve its services to the standard we and the public expect. The Government will then consider Avanti’s performance while finalising a national rail contract for consideration in relation to the route, alongside preparations by the operator of last resort should it become necessary for it to step in at the end of the extension period.

The primary cause of Avanti’s recent problems is a shortage of fully trained drivers. Avanti was heavily reliant on drivers volunteering to work additional days because of delays in training during covid. When volunteering suddenly all but ceased, Avanti was no longer able to operate its timetable. Nearly 100 additional drivers will enter formal service between April and December this year, and Avanti has begun to restore services, initially focusing on the Manchester and Birmingham routes.

From December, Avanti plans to operate 264 daily train services on weekdays, a significant step up from the circa 180 daily services at present. We need train services that are reliable and resilient to modern life. Although the company has taken positive steps to get more trains moving, it must do more to deliver certainty of service to its passengers. We will hold Avanti fully to account for things in its control, but this plan is not without risk and, importantly, requires trade union co-operation. The priority remains to support the restoration of services before making any long-term decisions.

In assessing options for a longer-term contract, the Secretary of State will consider factors including outcomes for passengers, value for money and the delivery of major projects and investment—in this case High Speed 2, given the links to its future delivery model. To put it simply, things must improve during this probation period for the contract to be further extended.

I declare an interest, as I suspect many Members will, as a long-suffering traveller on the so-called rail service on the west coast main line.

By giving Avanti this six-month contract extension, after months of failure and rail chaos, this Government are frankly rewarding that failure. Avanti promised to improve services back in September, and instead it has gone and cut services, introduced this emergency timetable and almost entirely stopped selling tickets online.

The provision of reliable train services is essential for the economic growth and prosperity of more than half the UK’s population. I seek clarification on the metrics the Minister will use to assess improvement or, indeed, further failure, given that the bar is currently set so low. It is clear that the west coast franchise has been fundamentally mismanaged by Avanti. These significant failings mean that staff morale is at an all-time low, which is reflected in the industrial action taken by trade unions. Staff report being overworked and understaffed due to the company’s failure to recruit sufficient staff and fill vacancies. I understand that many station ticket offices are understaffed and, in many instances, the company is failing to meet its regulated ticket office opening hours. As the Government are so tightly managing this contract, what are they doing to resolve these industrial disputes and the issues affecting staff at Avanti?

It seems that the Government are intent on rewarding failure. Rather than bringing the franchise in-house, they have given Avanti an extension. The Government have given Avanti precisely the same management fee despite it running dozens fewer services. This means Avanti stands to receive fees, or profits, worth £6 million for this period. This profiteering is supported by the Government and paid for by taxpayers and passengers. Avanti is part-owned by the Italian Government, so why not the UK Government instead? We could then reinvest any surplus revenue in improving the network for passengers rather than seeing it seep out in profits. When will the Government stop rewarding Avanti’s failure and instead strip it of its franchise and bring the west coast main line back into public ownership?

What metrics will we use? As with all rail contract awards, the Government will act in accordance with the franchising policy statement made under section 26(1) of the Railways Act 1993, which is already publicly available, in assessing whether to award a new contract. As I have said a number of times from this Dispatch Box, we are clear that the current service is unacceptable and will look for significant improvements before April if we are to extend this contract any further.

I always say that bringing something in-house is not necessarily a magic bullet, as the hon. Member for Coventry South (Zarah Sultana) demonstrated with her recent tweet when travelling on London North Eastern Railway, which is operated by the operator of last resort. For example, there might be issues related to infrastructure, which is of course publicly owned.

Avanti has a plan for improvement and the significant restoration of services in December, and we are seeing new train drivers being trained. Of course, we are seeing the wider impact of industrial action on the network, on which we and the Opposition have very clear views. They support it one day and not the next.

We believe there is a credible plan. There is daily interaction between Avanti and the Department for Transport, with weekly interaction at the most senior level. Ministers are regularly updated, too. We are making sure that a firm eye is kept on this, and we receive regular representations from Members of this House on what needs to happen to ensure this line provides the type of service we all want to see.

I have previously raised my concern about the capacity of FirstGroup, which is a partner of Avanti that also operates the TransPennine service that has been absolutely appalling over recent months, particularly for my constituents who use Lockerbie station. Is the Minister clear that FirstGroup has the capacity both to operate TransPennine and be part of the Avanti partnership and, in both, achieve improvements on the currently unacceptable levels of service?

I have met FirstGroup to discuss the overall position of its franchise. It should be remembered that FirstGroup is also involved in running the Great Western Railway franchise, which runs fairly successfully in the south-west and Wales. Other parts of its operation are going relatively well, are well managed, are delivering good outcomes for customers and are supporting our agenda of growing the rail network. For example, GWR operates the Dartmoor line that was opened last year.

On TransPennine Express, we recognise that a number of factors have affected performance. Again, quite a lot of training is needed following the backlogs caused by covid and related to the line upgrades. It is clear that TransPennine Express services need to improve quite substantially. Again, we look to work with FirstGroup to get the type of improvement plan we want to see.

I call the shadow Minister, Tanmanjeet Singh Dhesi.

I thank my hon. Friend the Member for Lancaster and Fleetwood (Cat Smith) for securing this urgent question because Avanti West Coast’s continued abject failures are simply unacceptable. Over the course of its contract, Avanti has had the fewest trains on time, more complaints than any other operator and a wholesale failure to train new drivers, which has led to the mess we have to endure today. Despite this, Avanti has been rewarded with a contract extension. The Tories, as usual, are rewarding failure, yet there are gaping holes in the improvement plan announced alongside the contract extension, which will prolong passenger misery.

On the busiest main line in the country, at the busiest time of year, there is not a single bookable weekend service between November and Christmas—not one. The service reductions that the Government signed off were supposed to increase reliability, but they have done the exact opposite. Can the Minister explain today when services will be available to book and why the Transport Secretary failed to demand that as a condition of handing over millions in taxpayers’ cash? Avanti is being paid precisely the same management fee as under the previous contract, even though hundreds of services are not running—why? Travelling across the north is also becoming next to impossible. Today, more than 40 services on TransPennine Express have been cancelled. As my good friend the Mayor of West Yorkshire, Tracy Brabin, lamented to me:

“It’s chaos and the Government must intervene.”

So why are they planning to hand TPE an eight-year contract for this service in May? Perhaps the Minister can enlighten the House as to whether they are preventing a deal between TPE and the workforce which could improve services in the short term?

Today, what the public need to hear from the incoming Government—yet another Government—is a serious plan to get travel across the north back on track; they need to hear a plan to restore services. If the Government cannot get that, they must withdraw the contract, because passengers are sick and tired of excuses.

We have been clear that the current position with services is unacceptable and we expect significant improvements. Long-term contract award decisions will be affected if, as we approach them, the service day to day is not where it should be. The management fees that are paid are specified in the contracts for operating. That said, the performance fee, to which the hon. Gentleman was perhaps also referring, for Avanti for the period beyond the withdrawal of rest-day working and the current timetable reductions is due to be independently evaluated. That is not just done by the Government and it has not yet been done. I suspect that the independent evaluator will want to take on board quite a number of these points, but the hon. Gentleman will appreciate why I would not want to give too many comments from the Dispatch Box on what the independent evaluator should do.

As for the plans for improvement, the first point to make, which has already been touched on, is that we are seeing more drivers being trained by Avanti West Coast and there are plans to reinstate the vast majority of the timetable in December. Clearly, when deciding what comes next we will want to make sure that that has worked and it is delivering an acceptable level of service for ourselves and for passengers more widely. On TPE, although we are of course welcoming the fact that we are starting very large-scale investment into that route, the level of which that route has not seen for decades, we need to see significant improvement.

As for moving immediately to cancel the contract, I remind the hon. Gentleman of the quotes in the Manchester Evening News on 6 October that were attributed to Mayor Burnham about how that could bring more disruption in the short term. The idea that putting this situation into the hands of the operator of last resort would immediately resolve a driver shortage and other issues is not one that stands up to any scrutiny.

My constituents have been enduring a pretty terrible service from Avanti for many months, with only one train an hour from Stoke-on-Trent recently. But it is not just about the reliability and the cramped trains; it is also about the availability of tickets, as people are not able to book ahead, which is costing them more because they are having to buy on the day. When the Minister speaks to Avanti, will he make sure that he stresses not only reliability, but availability, so that my constituents can get up and down the west coast cheaply?

Yes, I will. In fact, I have already spoken to some of Avanti’s most senior management and made that point, particularly following representations from hon. Members. I also reinforced it in a meeting I had with FirstGroup more recently, and it has an overall interest in the Avanti operation.

I call the SNP spokesman, Gavin Newlands.

There are 14 trains scheduled this Saturday from Glasgow to Euston, but last Saturday only three actually ran, and yesterday saw more than 15% of Avanti’s Glasgow services cancelled. People in Scotland and the north of England are being treated as third-class citizens. I doubt that the laissez-faire attitude of the Department for Transport when it comes to industrial relations at Avanti would last five minutes if home counties commuter services were being slashed in the same way. When are Ministers going to roll up their sleeves and get involved? Was Mick Lynch not right when he said in evidence to the Transport Committee that Scottish Government politicians:

“have an attitude where they want to resolve the issue, whereas sometimes when we meet politicians down here they want to exacerbate the issue and make us their enemy.”

And that was before the Government tabled their utterly regressive Transport Strikes (Minimum Service Levels) Bill; Tory party ideology is impacting taxpayers and passengers yet again.

The six-month extension is seen by everyone as kicking the can down the road. What work is ongoing right now to ensure that the DFT and Directly Operated Railways Ltd are ready to “take back control” of a key piece of cross-border infrastructure, and we follow the lead of Scotland in ending the disastrous experiment of privatisation?

Work is ongoing to ensure that the operator of last resort would be ready in April to pick up the service. I will touch on some of the issues raised, but not all are within Avanti’s control; merely changing the franchise and who operates it would not resolve issues and problems that have been caused by infrastructure or engineering works, for obvious reasons—those sit in Network Rail’s purview. However, we are certainly not adopting a laissez-faire attitude. Every day, the DFT is engaging with Avanti and TPE about the services. Every week, there are senior-level contacts as well, and Ministers are actively involved with this process. I am a traveller on Avanti trains myself of a Sunday, and the idea that we are not interested in this or that we have some sort of laissez-faire attitude is completely for the birds. As for relationships with the trade unions, the Transport Secretary has met the general secretaries, but we make the point that we are not the employer in this circumstance, and it is for the unions and the operating companies to come to an agreement.

On Saturday, I endured an almost 10-hour odyssey across the UK to go from Barrow to London, for an engagement that I then missed. No one is going to peel an onion for me, but many of us have to endure this twice a week and for our constituents it is many more times than that. They are missing trips to the airport and to see their families, and they are missing their commutes. This is simply unacceptable, and they cannot book ahead and their tickets are ridiculously expensive as a result. Will my hon. Friend confirm that if Avanti does not improve services quickly, it will be stripped of its franchise?

I hear the points my hon. Friend makes. Obviously, he will appreciate that I need to follow the due legal process in terms of any removal of franchise, but we have made clear the criteria that are set out and the need for improvement before April, which is when we would need to take the final decision on a longer-term principle. If the current situation continues, that will clearly be a very strong part of our consideration.

Two weeks ago, I told Avanti in the Select Committee that every train I had booked in the past month had been cancelled. Avanti told me that there had been improvements. Improvements appear to be moving about as fast as the 8.55 from Manchester Piccadilly to London Euston—that train was cancelled. We have seen a reduced service, half of all trains late and 60,000 complaints, yet the Government have handed Avanti more than £19 million, including more than £4 million in performance bonuses. What message does the Minister think it sends to the public to reward Avanti in this way for nothing but failure and letting down its customers?