The following Statement was made in the House of Commons on Monday 20 March.
“With permission, Mr Speaker, I wish to make a Statement on the progress the Government are making in improving rail services for passengers.
Let me begin by saying how pleased I am that, today, members of the National Union of Rail, Maritime and Transport Workers at Network Rail have voted to accept a 5% plus 4% pay offer over two years. Seventy-six per cent of members voted to accept the offer, on a turnout of nearly 90%, showing just how many of them wanted to call time on this long-running dispute.
From the moment I became Transport Secretary, the Rail Minister and I have worked tirelessly to change the tone of the dispute. We sat down with all the rail union leaders and facilitated fair and reasonable pay offers. Now, all Network Rail union members have resolved their disputes, voting for a reasonable pay increase and accepting the need for a modern railway.
But not every rail worker is being given that chance. Despite the Rail Delivery Group putting a similar fair and reasonable offer on the table on behalf of the train operating companies, the RMT has refused to put it to a vote. It refused to suspend last week’s strike action even to consider it. Such a lack of co-operation is disappointing—and what does it achieve? It deprives the RMT’s own members of a democratic vote, denies them the pay rise they deserve and, most importantly, delivers more disruption to the travelling public.
My message to the RMT is simple: call off your strikes, put the RDG offer to a vote and give all your members a say because it is clear from the vote today—the ‘overwhelming’ vote, in the RMT’s own words—that its members understand that it is time to accept a deal that works, not only for their interests but for passengers.
Let me turn to the steps we are taking to help passengers and fix the issues on the west coast main line. Members will know that rest-day working, or overtime, is a common way for operators to run a normal timetable. However, last July, drivers for Avanti West Coast, who overwhelmingly belong to the ASLEF union, simultaneously and with no warning stopped volunteering to work overtime. Without enough drivers, Avanti had little choice but to run a much-reduced timetable, with fewer trains per hour from London to destinations in the Midlands and the north. Passengers, businesses and communities along vital routes up and down the west coast main line rightly felt let down, facing cancelled services, overcrowded trains and poor customer information. Put simply, it has not been good enough.
While the removal of rest-day working was the main contributing factor, my honourable friend the Rail Minister and I repeatedly made it clear to Avanti’s owning groups, Trenitalia and First Group, that their performance needed to improve too, because we should always hold train operators to account for matters within their control. That accountability should come with the chance to put things right. That is why my predecessor, my right honourable friend the Member for Berwick-upon-Tweed, Anne-Marie Trevelyan, extended Avanti’s contract by six months in October. She rightly set a clear expectation that performance had to improve—no ifs and no buts.
I am pleased to say that not only was Avanti’s recovery plan welcomed by the Office of Rail and Road but it has led to improvements on the network, with weekday services rising from 180 to 264 trains per day, the highest level in over two years, and cancellation rates falling from around 25% to an average of 4.2% in early March, the lowest level in 12 months. Nearly 90% of Avanti’s trains now arrive within 15 minutes of their scheduled time, over 100 additional drivers have been recruited, reducing reliance on union-controlled overtime working, and it is very pleasing to see Avanti’s new discounted ticketing scheme benefiting passengers on certain routes.
As you would expect me to say, Mr Speaker, there is much more still to do to ensure that Avanti restores services to the level we expect and to earn back the trust that passengers have lost, but we should welcome those improvements and recognise the hard work undertaken to get to this point. The Rail Minister in particular has overseen weekly meetings on Avanti for months and kept honourable Members from both sides of the House regularly informed. He deserves credit, along with Avanti, for that turnaround.
October’s extension was not popular, least of all in parts of this House, but it was the right decision and Avanti is turning a corner. Its recovery so far has given me sufficient confidence to confirm that today we will extend its contract by a further six months, running until 15 October. However, that short-term contract comes with the expectation that it will continue to win back the confidence of passengers, with a particular focus on more reliable weekend services, continued reductions in cancellations, and improvements in passenger information during planned and unplanned disruption. My department will continue to work closely with Avanti to restore reliability and punctuality to levels that passengers have long demanded and have a right to expect.
I realise some honourable Members will also want to hear about TransPennine Express. I will update the House separately about TransPennine Express ahead of the contract expiring at the end of May, but let me be clear: its current service levels are, frankly, unacceptable and we will hold it to account on its recovery plan. We have made it clear that, unless passengers see significant improvements, like we have on Avanti, all options regarding that contract remain on the table.
I spoke earlier about holding operators to account, but if we stand here and rightly criticise poor operator performance, we should also recognise that across the industry train operating companies have few levers to change it. Avanti, like others, relies on driver good will to run a reliable seven-day-a-week railway. Like others, it is at the mercy of infrastructure issues out of its control. In fact, seven separate infrastructure issues affected Avanti’s performance in the first week of March alone.
Outdated working practices and track resilience are why predictable calls for nationalisation wildly miss the point. Any operator would face those constraints and struggle to run a reliable service. Ideological debates about ownership are therefore a distraction, like wanting to paint your car a new colour when what it needs is a new engine. Only fundamental reform will fix rail’s systemic issues, which is what the Government are delivering, bringing track and train together under the remit of Great British Railways, taking a whole-system approach to cost, revenue and efficiency, and freeing up the private sector to innovate and prioritise passengers. Having set out my vision for rail last month, very soon I will announce the location of the headquarters of Great British Railways, another clear sign of the momentum we are building on reform.
We are getting on with the job of delivering a better railway. It is why we are finally seeing improvements along the west coast main line, as we continue to hold Avanti to account. It is why we are making progress on rail reform. It is why we will always defend the travelling public from unnecessary strike action, and it is why we will always play our part in resolving disputes in a way that is fair to rail workers, the travelling public and the taxpayer. Unlike others, I am not interested in pointless ideological debates about privatisation and nationalisation. The Government are focused on gripping the long-standing issues facing the industry for the benefit of its customers—freight customers and passengers—taking the tough but responsible decisions in the national interest, and building the growing, financially sustainable and modern railway Britain deserves. I commend this statement to the House.”
My Lords, I will start on a positive note—I like to do that—by saying that we welcome the successful negotiations with Network Rail, although all those who regularly travel by train, as I do every day, will wish that this had happened 10 months ago to avoid all the misery inflicted on both the staff involved and the passengers.
I wonder whether the Secretary of State and the Minister have any idea of the incredulity with which yesterday’s announcement of the extension of the Avanti contract for a further six months was greeted by residents, businesses and community leaders all along the route of Avanti West Coast. This is a company that has flouted all attempts to improve services, has treated its passengers with contempt and has left those working tirelessly to improve the economy in those parts of our country despairing of ever having the public transport system they need.
Last chances are all well and good when applied to a naughty toddler who has crayoned on the bathroom wall or a teenager who has stayed out too late. When they are given to a company that has done its best to wreck the economy of large swathes of our country and disrupt the lives and livelihoods of millions of passengers, it is intolerable.
To hear the Minister speak yesterday of improvements in the service would, I am sure, have been excruciating for those who have to use Avanti services regularly. Even under the intense focus and scrutiny of a government improvement plan, those trying to get to work, school or college and to carry out their businesses are still faced with a barrage of late trains and cancellations. Avanti West Coast has had the highest number of trains more than 15 minutes late and the worst single month of cancellations ever—worse even than in August, at the height of the chaos, and worse than during the pandemic. And we still see the number of trains arriving on time falling, with only one-third meeting their scheduled arrival time. So I ask the Minister why this incompetence has been rewarded with a further six-month contract and how much worse services have to get before the Government act.
My Lords, this Statement sums up the mess our infrastructure has become under a succession of Conservative Governments. I agree with the Government on a couple of points: I welcome progress in resolving strike action, so far as it has occurred. That has been allowed to drift on for far too long and was indeed stoked by the previous Secretary of State. It has badly damaged trust in railway services just when recovery from the impact of the pandemic should have been crucial. I also agree that discussions on who owns the railways is irrelevant, because the Government have effectively nationalised them and taken responsibility. That is the important thing: the Government have taken responsibility for how the railways are run.
However, turning to the rest of the Statement, I have some major points of difference. First, awarding Avanti a six-month extension is an extraordinary decision, and I mean that in the proper sense of that term. FirstGroup has failed in this franchise and continues to fail with TransPennine Express. Other train operating companies have faced exactly the same pressures—Covid, weather, strikes—but by better management and decision-making, they have more effectively minimised the impact on customers. So my first question is: how badly does FirstGroup have to do to lose either of these franchises? Because they are truly being rewarded for failure.
The improvements that the Government cite at Avanti seem very recent and very insubstantial. My question is: there have been months of past poor service; will Avanti or its shareholders face any financial penalties for poor service, repeated cancellations, late running and systematically misleading the public and the Government about cancellation rates by cancelling late on the night before? Another question refers to the 100 extra drivers that the Government cite. Can the Minister give us a view as to whether that is enough in the Government’s eyes? How long will it take to train those drivers?
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Just what message does this send to people and businesses, let alone potential investors, about the Government’s commitment to levelling up? Your Lordships have spent many hours discussing the levelling-up Bill in this House in recent weeks, but for people out there, actions speak so much louder than words, and the Government’s complacency about the long-term and chronic failure of railway services to the north, the north-west and Wales does nothing to convince them that there is any real commitment to levelling up at all.
Because it is not just Avanti that is failing. Consider the consistent deficiencies that passengers of TransPennine have had to endure. These go back at least to when my son was at university in Preston over 20 years ago, when a weekend visit to him would become an endurance test. Yesterday, for example, more than 35 services were cancelled on TransPennine. There really are no adequate excuses for this continuing debacle. Will the Minister press her colleagues in the department to end this indefensible shambles for good in May by not extending the TransPennine contract?
All we hear from the rail companies are attempts to blame the trade unions and the workforce for issues that quite clearly sit right at the top, with management and with Ministers. There were 4,100 cancelled services last month, on top of 17,800 fewer services altogether. Surely, the Minister can understand that rail passengers of Avanti and TransPennine have had enough. Why would she and the Government want to put them through another six months of chaos by extending this contract? Why, in spite of Avanti having the most complaints of any operator in 2021-22, did the Government sanction a £12 million dividend for Avanti shareholders and £4 million of taxpayers’ money being paid in bonuses to company executives? Surely it is the passengers, who are being failed so badly, that need compensation.
Even when the trains do run, the service for passengers is woeful. My noble friend Lady Hayman of Ullock travels here from Cumbria every week and often finds there are no catering facilities at all on trains for a journey of some six hours. We hear other reports of mouldy food and locked toilets on these lines. The provision and support for passengers with disabilities is often woeful. The passengers really do seem to be the very last consideration of these failing companies.
To turbocharge our economy and to encourage the use of public transport, which could then transform our ambition to achieve net-zero emissions, we need railways that are efficient, trusted, reliable and affordable. Not one of those adjectives applies to Avanti West Coast or TransPennine, yet the Government shrug their shoulders and push decisions back into the railway sidings for another day. They hold on to this broken railway system for their own ideological reasons, presumably believing that competition will always serve passengers best and deliver lower fares: neither of these is the case. In some circumstances, it is cheaper to buy a return air ticket to Berlin than to travel to Wales on the train from London.
If the Government cannot or will not make the vital decisions on public transport that we need for passengers, for our economy, for the environment and for levelling up, then they should step aside. Labour will end the fractured, fragmented system which is failing passengers, communities and businesses, and put them back at the heart of a public transport system that works for everyone. At the moment, it is very clear that while this Government are in charge, the railways will stay broken.
Reference is also made to a new discounted ticket scheme on some routes. What proportion of routes will have this new discounted scheme? I remind the Minister that what passengers want is to be able to book ahead, because advance fares are cheaper, and they want to be able to book ahead on all routes. When will they be able to do this? Have the Government just handed Avanti another golden cheque, or are there some useful conditions to this funding? I recall that Transport for London has very stringent conditions attached to its funding. What are the stringent conditions attached to the funding of Avanti for the next few months? While we are talking about railways, is it true, as is reported in the Daily Telegraph today, that the Government are about to announce a reduction in passenger rights to delay repay compensation? If that is true, it really is adding insult to injury.
Finally, the Statement looks vaguely at the issue of reform, which is, of course, long overdue. There is a great deal of consensus on the issue of reform, so when can we expect legislation on it? The Government have repeatedly told us that simplification of ticketing is just around the corner and that it does not need legislation, so I ask the Minister when we can expect to see it happen.