My Lords, the wording of the Motion before your Lordships’ House calls for greater coherence for Britain’s transport system. I hope that, while debating this important matter, we can agree on both sides of the House that coherence is the one thing that is lacking. Indeed, the current Government made a virtue of a lack of coherence with their transport policy. I will come to the divisions within the rail and bus industry in a moment or two, but we lack an overall transport policy in this country and have done for many years. In so far as our major transport sectors are concerned—bus and rail—it is the British people who have suffered, particularly the passengers on both modes of transport.
The failings of our railway network are many and manifold. Since privatisation in 1994, fares for passengers on our railway system have increased by around 20% in real terms; that is not what we were promised when the privatisation Bill went through both Houses of Parliament. We were told that the thrusting private enterprise system being introduced would not just increase competition between railway companies but bring lower fares to its passengers. The result, of course, has been exactly the opposite. We have seen a failure in reliability since privatisation. I have no wish to bore your Lordships with stories of my time on British Rail, but the cancellation of a passenger train in my days in an operating role was virtually unheard of. Because it was an integrated system, we could generally find locomotives, drivers and train crew that could be moved from one role to another in the event of any hiatus within the timetabling system. That does not happen now; because of privatisation, drivers for one company often cannot drive the locomotives of another company; train crews who do not know the route from A to B cannot step in when short-term cancellations take place. Again, this is not what we were promised at the time of privatisation, but it is the reality that we have today.
I read this morning that something like a thousand trains a day on the railway system are cancelled. No other railway system in the developed world has to face such a nonsense on a daily basis. We will be assured by the Minister that everything is in hand and the railways will continue to improve in future, but it is just not true. Another aspect of this is the collapse of morale among those who work in the railway industry. I use Birmingham International station on a regular basis to travel to and from London. The staff there tell me that on some days they hide from the public because they are so ashamed of the product that they have to put in front of them. They also say that, by and large, information is not transported down the line—no pun intended—to those at the front end so that they can pass it on to passengers; they are as unaware as the rest of us of when things go wrong and how they can be put right. This leads, as I have indicated, to a collapse in morale—and in industrial relations generally.
My Lords, it is a great pleasure to participate in this debate. I congratulate the noble Lord, Lord Snape, on securing it. Despite the somewhat dismal litany we have heard from him, many of us will recognise the challenges and the points he made. I also congratulate him on the fact that, based on the Labour Party’s announcement of a new transport policy today, which is all over the newspapers, he is obviously still pulling the levers of power in the party.
I declare my interests as set out in the register. It is a truism that an effective transport system is a central part of an industrial strategy and a driver for growth. It allows towns and cities to have ready access to skills and it opens up the possibility of development. It allows the movement of freight effectively and contributes to individual travel and leisure. Properly managed, it should also contribute to net zero and a healthier environment, as well as providing a means of levelling up. That list of desiderata shows how vital an effective transport strategy is. The list also provides criteria for judging how effective the Government have been in delivery. I look forward to hearing from my noble friend the Minister in this regard.
The Institution of Civil Engineers, which the noble Lord has just referred to—I thank it for its helpful briefing—points out that uncertainty is a problem. The delays and the cancellation of a large part of HS2 are a graphic example of that. I was a strong supporter of HS2. Key large-scale infrastructure projects are generally, if not universally, to be encouraged. I do not believe, for example, that there are hordes of people who would reverse the Channel Tunnel project now. Also, a glance at the position in other countries is a valuable exercise and a demonstration of major infrastructure’s success in being a driver for growth, be it France, Japan, Germany or elsewhere.
Fragmentation of responsibility is another key problem that has probably bedevilled successive Governments. Investment in England’s railways and roads is determined on a different cycle by central government. The centre is also responsible for capital for local roads, bus support and a range of smaller funding pots. Then, of course, there is the new array of metro mayors and combined authorities with various transport responsibilities. I pause there to congratulate the Government on metro mayors and combined authorities. It is the right policy and is leading to innovation and acting as a driver for growth. My point is that it is one additional layer that has to be brought in as part of the overarching, powerful national strategy. The same is true of the national policies in Wales, Scotland and Northern Ireland, which present another part of the national UK strategy that has to be adopted. I will be keen to hear what my noble friend the Minister has to say on this.
My Lords, it is a pleasure to congratulate my noble friend Lord Snape on securing this debate. Over the years there has been no better advocate for the railway than him in your Lordships’ House and in the House of Commons before that. He features significantly in the three books on railways and politics that I co-authored.
I remind the House of my railway interests as declared in the register. I chair the Great Western Railway stakeholder advisory board and the North Cotswold Line Task Force and am president of the Heritage Railway Association. I apologise to the House for not declaring the HRA interest when I asked a question in the Chamber yesterday about coal supplies for steam railways.
For nearly 20 years from the mid-1970s onwards, I was an adviser to the British Railways Board. This was the last time the industry benefited from the influence of a guiding mind and from the energy and enthusiasm of its chairman, Sir Peter Parker, and his immediate successor, Sir Robert Reid. It was their misfortune—and the country’s—that this coincided with a period of managed decline and retrenchment on the railway, as transport policy placed far too heavy a reliance on car usage and road haulage.
One of the consequences of that mindset was the decision to reduce the size of the network and take out capacity. With the demand for rail travel having grown so markedly over the past two decades, much effort and huge expense have had to be incurred in the limited programme of station and line reopenings. So much more could have been achieved had many of those closures not happened.
We are now about to embark on another seismic reorganisation and have to get it right. The Government are not short of advice on what needs to be done, and I particularly commend the Manifesto for Rail published by the lobby group Rail Partners. It says:
My Lords, it is always a pleasure to follow the noble Lord, Lord Faulkner of Worcester, and I congratulate the noble Lord, Lord Snape, on securing this timely debate on the failing transport system. We are normally limited to 30 seconds of quick-fire questions to the Minister, which are batted back. We need to give the new Minister time to understand the problems that the noble Baroness, Lady Vere, had. Now that she skips around the House of Lords without the responsibility of answering for Avanti, she looks about five years younger.
I think we would all agree that the UK’s long-term economic, environmental and social objectives are not being realised at the pace required, and transport has a key role to play in meeting those strategic objectives. It
“enables productivity and economic growth as well as quality of life and social well-being”—
not my words but those of the Institution of Civil Engineers.
Mind you, as the noble Lord, Lord Snape, said, there are many forms of transport, and the roads are not much better. There are smart motorways with cameras not working and no safety lanes. If you are on a smart motorway and you break down, you wonder whether your life is literally in your hands. It is unacceptable. There are prolonged lane closures and endless repairs due to budget cuts. There are speed restrictions and, in Greater Manchester, bad design. The M60, the orbital motorway that runs around it, floods around Denton in heavy rain. If there is a motorway that floods, somebody needs to think about that.
There are bus services, again mentioned by the noble Lord, Lord Snape. Greater Manchester has dealt with that problem now. That is the beauty of elected mayors: collective responsibility for local people making local decisions. They have taken the buses back into local ownership. Those bus routes will now reflect the routes that they need to run on, at a price that people can afford. They will give a better service and will be integrated with other services. In Greater Manchester, we are now working to try to integrate them with the taxis and trains, trying to get something like an Oyster card going.
My Lords, I thank my noble friend for calling this debate. I shall return to his comments later. My contribution had to be urgently amended late last night, following the more than excellent news that a Labour Government would grasp the nettle and take rail back into public ownership. Whereas I had originally intended to canter around the course on wider issues of public transport, I now intend to confine my remarks to the excesses of private rail and, in particular, its ticket pricing structure under privatised arrangements.
The rising cost of travel following privatisation illustrates perfectly the distinction in priorities between the public and private sectors. Whereas the driver behind public service operations is serving the public interest, the driver behind private sector operations has to be service, but compromised by profit. The water industry provides us with a classic example, particularly in London and the south-east. I am not ideologically opposed to privatisation: I am opposed to privatisation in conditions of monopoly. Monopolies invariably and inevitably abuse their position, whether through restriction of supply or sectoral excess profit taking. This is what has happened under rail privatisation. The idea that you have real competition on the railways, justified on the basis of competing franchises, is for the birds. It is a myth. The reality is that rail franchising under privatisation has saddled us with a string of monopoly providers. That is the case on much of the national network.
For example, if you bring up National Rail Enquiries on 03457 484 950 and ask for a return ticket from Carlisle to London—I see my noble friend there on the Front Bench, who will be regularly buying these tickets—you receive the monopoly price. I was told this morning that there is one contractor, Avanti West Coast, and I give an example. A traveller ringing up to purchase that Carlisle to London standard anytime open return ticket will pay £392. It is grossly overpriced. It is designed in such a way as to catch the traveller going about his or her business and requiring early attendance at their destination. It is excessive, unreasonable and exploitative.
My Lords, I too commend the noble Lord, Lord Snape, for initiating this timely debate, from which I suspect a fair amount of consensus will emerge, at least about what is wrong.
In the noughties, I worked as Tony Blair’s strategy adviser, and among my tasks was to lead a study by officials of the UK’s transport system—road and rail. It was a sorry, chastening experience. We identified that the UK had, by a country mile, the least developed road and rail network of any major country. The core reason for this was that, for the previous 50 years or more, the UK had invested—under both main parties—a lower share of GDP than other major countries. At the first sign of economic reverse—it happened time and again—capital spend was cut in favour of current spend. Frankly, the Treasury appeared not at all to value the payback that comes over time from investing in more efficient transportation. Germany’s GDP per hour worked is 23% greater than the UK’s; France’s is 17% greater. Of course, their superior performance is not all down to their superior infrastructure, but it surely helps.
Tony Blair gave an in-principle go-ahead to a high-speed rail network linking Liverpool, Manchester and Leeds to London. The noble Lord, Lord Adonis, picked up the baton. It is nationally shaming that, 20 years later, no part of that vision is operating, and that, ridiculously, after multiple revisions, only the Birmingham to London section of HSR is now under construction.
At the time of Tony Blair’s go-ahead, China had no high-speed rail network at all. Now, incredibly—it is very hard to believe this figure—China has more than 40,000 kilometres of HSR in operation. As we meet today, the UK has 113 kilometres of high-speed rail. A World Bank study identifies how China has achieved this remarkable transformation: a well-analysed long-term plan, standardised design and construction, and a competitive supply network, and all at two-thirds per kilometre of any other country. Since 1990, China, with a GDP per capita of around $12,000, has also built 130,000 kilometres of motorway.
It gives me great pleasure to follow the noble Lord, Lord Birt, in this debate. I congratulate my noble friend Lord Snape on the wording for his debate. He has hit the nail on the head, in saying that we have lots of incoherent plans and need a strategy, as the noble Lord, Lord Birt, also said. I fully support this, and we have had some very interesting speeches so far.
I shall say a few words about rail, but this debate is about transport. We had a very interesting briefing from the Low Traffic Future alliance, which reminded us that transport is for moving people and goods. Net zero is important but we have big problems, such as the increased dependency on motorised traffic, poor public transport, poor walking and cycling conditions—certainly compared with the continent—and potholes. I actually came off my bike when I hit a pothole a week or two ago, and it was not very pleasant. We do not seem to be doing anything about that either. We are also out of balance in the benefits of transport between the different regions.
There is an argument for, after the next election, before rushing into legislation, thinking carefully about a national transport strategy. Everybody has been talking about strategies today and I will not go into the detail now. That could involve pausing road schemes and putting more investment into healthy and sustainable transport, and probably helping with changes to planning law. On the railways, it is interesting. We now have the two major parties coming forward with plans to reorganise the railway by legislation, putting the customers first, which is wonderful. I wonder whether actually we need legislation at this stage. How much of it can be done without legislation?
Noble Lords will remember the strategic rail authority, which took two years to be created and then, after a couple of years, two years to be removed. During those two years, very little happened and some of us got extremely frustrated that nothing was happening. I think it is worth looking at what can be done to put customers first with some quick wins. Many noble Lords have mentioned strikes. That is the first thing, and I trust that a new Labour Government will address that. I believe that many of the problems that I and noble Lords have spoken about this morning are down to bad management. I am not sure that it matters particularly whether the management is nationalised or private sector; the Rail Partners’ proposals are a pretty good mix of the two. The management, mainly from the Department for Transport, with a bit—I do not know whether it is support or not, and we can debate that—from the Treasury, has not organised at all well addressing many of the problems noble Lords have spoken about.
My Lords, Britain was once a great innovator in transport. It was the first of the European nations to create a modern transport network. In the late 18th century, John McAdam and Thomas Telford, known to his contemporaries as the Colossus of Roads, were at the forefront of an endeavour to construct a serviceable network of highways that expedited travel in an unprecedented way.
At the same time, a network of canals was under construction that enabled goods and freight to be conveyed over long distances. Then, from the middle of the 19th century, a vast network of railways was under construction. This was achieved by speculative private enterprise, which often resulted in private ruin. In Lewis Carroll’s poem, “The Hunting of the Snark”, we hear of threatening a person’s life with a railway share. The process was a free for all, and it endowed the nation with a network that was arguably full of replication and redundancy. It was fit for pruning. It was eventually reduced drastically and, in retrospect, far too extensively, in the 1960s under was aegis of a certain Dr Beeching. He was an engineer and physicist who had worked for Imperial Chemical Industries before he was charged with this task, which made him a prominent public figure.
By the middle of the 20th century Britain’s transport network had fallen into disrepair, and its roads were no longer to be admired. Britain lacked the autobahns, autostrada and routes nationales of its European neighbours, some of which had been inspired by dictators with militaristic intentions. Belatedly, in the 1960s Britain indulged in a feverish process of catch-up that created our own inadequate motorways.
Our rail system had also fallen into disrepair, and it still compares unfavourably with those of its continental neighbours. They have benefited from national investment programmes that have been absent from Britain. Worse was to come when the Conservative Government of John Major denationalised the railways and sought to re-establish the system of large railway companies that had dominated the industry in the 1930s, which was arguably its heyday.
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This Government appear to need to find an enemy rather than deal with any problems. The latest enemy, as far as the railway industry is concerned, is ASLEF, the drivers’ union: no negotiations have taken place between the train operating companies and the representatives of ASLEF for over a year. All the Government can say is, “But they earn £60,000 a year”. Well, I do not object to train drivers earning £60,000 a year; it is about an afternoon’s work for a hedge fund operative—whatever they actually do. Someone in a responsible position such as a train driver should be properly paid, and train drivers and their representatives ought to be consulted about not just wages but the aims of the railway industry. We all know that the train operating companies take their orders from His Majesty’s Government in this supposedly privatised world, so they have their hands tied and cannot freely enter negotiations with ASLEF and the other railway trade unions.
We were promised when privatisation took place that there would be an upsurge in new rolling stock and new locomotives for the railway industry. Yet we have just rescued Litchurch Lane in Derby by a last-minute order for trains, to keep something like 1,500 skilled personnel in work there and thousands of other people in the supply chain. Hitachi recently opened, with some fanfare, a factory in the north-east, but that now faces closure because of the dearth of orders for the railway industry, and this has been partly brought about by the nonsense of HS2. I do not wish to rehearse the whole business again in front of your Lordships, but no other country could put forward proposals for a high-speed railway and then keep cutting them back. Only the current Prime Minister could go to Manchester to a Conservative Party conference to tell it that the high-speed line between Birmingham and Manchester is cancelled and expect a standing ovation for doing so. That truncated high-speed route will not just directly impact passengers. Without getting too bogged down again in the details of what is left of HS2, I point out that to travel from Handsacre Junction to Old Oak Common is not quite what was envisaged at the time the proposals for this high-speed railway were put forward. The rump of it has been summed up as a railway starting somewhere that no one has ever heard of, to end up somewhere no one wants to go. Only the present Government could devise a high-speed railway that would make journeys between, for example, Manchester and London no faster and, in some cases, slower than the existing line. The need for a proper strategy for the railway industry is pretty obvious.
I turn also to the bus industry. Those of us who take an interest in these matters were intrigued some years ago to see the Prime Minister at the time, somebody called Boris Johnson—I wonder what happened to him—announce with great fanfare a scheme called Bus Back Better. He was a great man for gimmicks, but what has been the reality of Bus Back Better since its inception? The answer is that bus services throughout the country have been decimated, and many towns and cities that formerly had a proper bus service no longer have such a thing.
At the time of bus privatisation—I was a Member of the other place then—Nicholas Ridley made a virtue of the thrusting competition that would result from the 1984 privatisation Act. Yet towns and cities in this country have seen not only their bus fares increase, in real terms, by around 15% to 20% but their bus services decimated. There is a whole list of casualties of bus services, which have been reduced in previous years, including in cities such as Bath. Everybody talks about Birmingham, of course, and that the near bankruptcy in Birmingham is all the Labour Party’s fault. I do not think that Bath is particularly regarded as a left-wing bastion, yet bus services there have reduced by about 70% since privatisation. The fact is that local authorities, having been starved of funds, have no finance to subsidise essential bus services, and even the commercial routes in many of our cities up and down the country have been cut back because of financial problems.
Bus Back Better has turned out to be “bus back a lot worse” over the last couple of years. I would be interested to hear from the Minister what the Government propose, other than postponing all the decisions until after the next general election, when they will not be affected anyway, as far as bus services are concerned.
Lastly, I will talk for a moment or two about the road network, important though it is. Again, in theory we have a £20 billion-odd road programme in this country, yet driving around our major towns and cities is an object lesson in pothole avoidance. I was driven into the centre of Birmingham the other day to a hospital. I have a bad hand so I cannot drive; I was going on to the railway station, so I do not want to be accused of failing to use public transport. It was fascinating to watch how the regular drivers and commuters weaved their way through all the potholes at major junctions. Are we serious? We supposedly have a £24 billion or £25 billion road-building programme, yet we cannot fill potholes in our towns and cities. The Government will again blame wasteful local authorities, but they have cut back the resources for local authorities for many years. How are local authorities supposed to provide not only the essential statutory services but the upkeep of the infrastructure in the areas they represent?
The lack of a transport strategy is not the only disaster. There is also the attitude of the Treasury towards any major project. All the Treasury ever sees is the cost; benefits never ever occur to it. The fact is that investment in our road, railway and transport system brings a return far in excess of the initial cost, in most cases, but, short-termism being the curse of Britain over the years, the fact is that many of the projects that need to be completed are put aside, HS2 being only one example.
The lack of enthusiasm, strategy and planning as far as our transport system is concerned makes this country the laughing stock of the western world. The fact is, we need proper long-term planning for many of these major infrastructure projects, both road and rail. I leave the last word to the Institution of Civil Engineers, which makes exactly that same point: that short-termism has bedevilled British infrastructure projects for years, and that when things go wrong the Treasury all to soon says, “We can save billions of pounds by cancelling a specific project”. The nation has been the great loser in this lack of any sort of transport strategy over the years, and I hope that, during the course of the debate, I can take noble Lords on both sides along with me when I say that it is the nation that has been the loser. I beg to move.
As I hope we can all agree, we need to speed up national planning decisions. Again, it could act as a driver of a true national transport policy. We need to sharpen our focus on net zero with a push for the use of trams, buses and trains in and between urban areas. This is not, of course, a war on the motorist, but it is a recognition that effective public transport deserves consistent support through funding and policy levers. In this regard, and I declare my interest as a regular rail user—I know my noble friend the Minister is too—the system is creaking badly, as the noble Lord, Lord Snape, has said. We see it every day and it is harming our economy.
I wonder whether I may digress slightly from infrastructure policy to the damaging industrial relations position on Network Rail. I have informed my noble friend the Minister that I would raise this. The noble Lord, Lord Snape, also touched on it. This has gone on for far too long. I wonder what the Government are doing to promote a lasting settlement. Strikes and industrial action not only cause harm to individual journeys and travellers but damage the economy as a whole.
I will share a personal example. I chair a charity—International Students House in London—and every time there is a strike, a plethora of commercial bookings for that charity is cancelled for strike days. This causes dismay and individual disappointment but, above all, it damages the economy of the charity. It is an illustration of what is happening across the nation, with hundreds of thousands of examples up and down the country.
In the time available, I also make a plea for a lasting cap on bus fares. I approve of the cap, which is due to run out in November this year, but what is happening after that? This is another example of the uncertainty in the system. We need to know on a much broader basis what is going to be happening and to know about funding for buses up and down the country.
I know that much rests on my noble friend’s shoulders and that he is well aware of the problems and doing what he can to help. We really need some certainty, an end to the fragmentation and speedier planning. Certainly, looking at the position in rail should be the number one priority for the department but there is also the national bus system and how we can do something on fares. I look forward to listening to my noble friend’s response at the end of the debate.
“Whoever is in office after the next general election needs to take decisions to ensure the industry has the ability to attract passengers back to restore hundreds of millions of pounds in lost revenue, drive modal shift for goods against more polluting modes, and ultimately set up the railway for sustainable success. The public is not that interested in how our railways are structured or organised, they just want to have trains that run on time, that are not disrupted by strikes, and fares that offer them the best value for their journey”.
It is crucial that, with a general election coming so soon and—I think most Members of your Lordships’ House would agree—a change of administration very much on the cards, every effort is made now to achieve a cross-party consensus on what needs to be done. To his credit, I believe that the Minister, the noble Lord, Lord Davies of Gower, gets this, as does the Minister for Rail in the other place, Huw Merriman. I very much appreciate the invitation the two Ministers sent to Members of your Lordships’ House to attend the briefing on the draft Bill on 19 March. The noble Lord, Lord Hendy of Richmond Hill, played a prominent part in that, and I am pleased to see him in his place today. The briefing was also given by members of the Great British Railways transition team.
The overriding priority is to pass rail reform legislation, establish Great British Railways as soon as possible and get on with improving the railways by stimulating demand and reducing cost. The Bill contains some helpful measures in this regard, notably the creation of an integrated rail body, the IRB. In legal terms, the body combines the DfT’s role as franchising authority and takes over the role of infrastructure manager undertaken by Network Rail. The IRB will be held to account on how it delivers rail services and be accountable for the whole system, including passenger revenue and a freight growth target. It is potentially good news for passengers and freight users and could simplify the railway, making it cheaper to run.
The Bill gets decisions away from a remote, non-operational Whitehall department and provides the opportunity to join up the railway closer to the people who use it. The new IRB model should help tackle high costs and project delays. One of our railways’ greatest challenges is the way UK capital projects regularly come in at a much higher cost than those in other countries. Stop-start investment and changing government plans result in project managers overspecifying schemes and suppliers putting in high cost estimates to cover the risk of uncertainty. The cost of electrification schemes is a particular example, and has proved to be the death knell of extending the benefits of HS2 to the north of England and Scotland.
A prerequisite for the IRB’s success is to take revenue risk away from the Treasury and cost control from the DfT. The new body needs to be judged solely on the net subsidy and public investment cost. Rail usage has broadly doubled since privatisation, resulting in a much more congested network, and it is important that we have proper trade-offs on its future usage and meet that demand.
It is evident from the statements made by the Prime Minister and No. 10 that railways are now seen as a problem rather than an opportunity and that tactical policy is now strictly controlled by the Treasury rather than the DfT, with minimising costs being the primary objective. Yet rail is essential if we are to meet the carbon reduction targets required in the transport sector. While electric cars may help, no such solution is available for aviation or heavy haulage, which will be dependent on fossil fuels for the foreseeable future. Rail passenger services that offer times competitive with air are essential to reduce the need for internal and short-haul European flights. The same is true for container trains between the ports and inland distribution centres. Not only is rail now cheaper for many of these flows but customers are increasingly demanding environmentally sustainable rail solutions to reduce their carbon footprint.
I will finish with the concluding sentence from Signals Passed at Danger,my third book on railways, published last year:
“The railways’ capabilities are manifest when the management of the railways is restored to those competent to operate them, with a clear strategy and funding agreed to deliver the outputs of that strategy”.
As I travel down to London daily on the two-hour grind—well, two hours on a good day, normally two hours 20 minutes upwards—I listen to podcasts. The last one I heard was from Transport for the North, which is chaired by the noble Lord, Lord McLoughlin, who is in his place today. They had Andy Mellors, the MD of Avanti, on. It is worth a listen. Mayor Burnham, and Mayor Rotheram from Liverpool, were questioning Andy about tickets sold for a Saturday service. They were asking him, “When are your trains cancelled for a Saturday service?” He said, “We cancel those trains on Friday afternoon”. They said, “When do you stop selling tickets for those trains on Saturday?” He said, “At 2 pm on the Saturday afternoon”. So Avanti was selling tickets for a train that was never going to run.
That particular Saturday, Chelsea Football Club—which I have no love for—was in Manchester to play a football match. There were hundreds and hundreds of supporters trapped in Manchester; you could not get back to London. Following that meeting, they asked the Minister to remove the franchise immediately. It is very funny: I think that that meeting was on Tuesday or Wednesday, and on Friday ASLEF was called in, and—surprise, surprise—£600 a shift was offered to ASLEF drivers to work weekends, which they gratefully accepted without any negotiation. That has made it a bit easier.
But trains are being cancelled. I got the 8.04 this morning; the next train and the one after that were cancelled. Had I not made the 8.04, I would not be stood here this afternoon speaking in this debate. I have heard today of Labour’s plans to run down the contracts of failing companies over five years, but I have to say that that will only add to the misery of thousands of travellers. I will try to explain why.
Avanti trains have three types of travel—actually, they have four. They have standard class, upper premium and first class. They also have another class: sitting on the floor from London to Manchester, which happens very often when trains have been cancelled and they declassify and allow complete overcrowding on them. I have photographs of me sat there. People who know me find it highly amusing to take pictures of me, sat on the floor, demanding I do something about it—which, unfortunately, I do not have the power to do.
If you go in standard class, you buy your ticket and sit down, and then the messages begin to come: “Today, we are not taking cash. Today, we are not taking card. Today, the coffee machine is not working. Today, the toilets are not working”. It goes on and on. These are new trains. You go to upper premium, which is a standard class ticket that you can buy in advance, pay £25 and sit in a first-class seat with a table and wifi. Unfortunately, in the last pay round, they put an extra £5 on that. It is now £30 to sit in the same seat you sat in last week, with no additional benefits. First class is apparently even better: “Chef’s not turned up today. No service. Food has not been delivered today. No service. Water leak in the kitchen. No service”. It is just unacceptable all around.
I wrote down a point about staff morale and the noble Lord, Lord Snape, has done it. I know that train operators do their best, but they do not: if you talk to train managers who have been there for 20 or 25 years, they will tell you that they are absolutely terrified of turning up for work. They have no idea whether the stock will be there and the kit will work, and they take abuse from the public, day in, day out. That is absolutely unacceptable. They do a great job and should be supported more. Just to say that the contracts can run down is an abrogation: thousands of people go up and down every day and they deserve a better service.
Finally, Trooping the Colour is this year, on 15 June. I know lots of people who have tickets and are going to it. Unfortunately, on that Saturday, there are no direct trains to London from Manchester: you can go via Wolverhampton or have a double diversion at Crewe. It is absolutely incomprehensible that this company can keep the contract. I hope the Minister will keep the pressure on—because I know, as we say up north, that he gets it—and does something to accelerate the removal of this contract or demands immediate improvements with huge penalties if that does not happen.
How about this one? A traveller travelling first class on the same train, on a similar Carlisle to London open return, will pay—listen—£538. I ask colleagues to compare that with the return fare from London to Beijing, in the People’s Republic of China, which is available today on the internet from British Airways at £382. Similar ticket prices were available from China Airlines and Lufthansa. So it costs the same to travel standard class—second class in the old days—from London to Carlisle and back as to fly from London to Beijing, in China, and back. What a nonsense.
The response of the wider is public is perfectly understandable: drive by car, add to air pollution, add to and put up with congestion on the motorway system, even risking the potholes that characterise much of our motorway network, and then go on to further increase congestion in London when you arrive. That is the legacy of privatisation: ignore the public interest and put profit before people.
Of course, the rail companies respond with the mantra: “pre-book”, “pre-book”. My main complaint in today’s debate is that it is hugely inconvenient for many in the world of work to pre-book, where travel is essential, often at short notice. Business, wider industry and professionals need to rely on sensible input costs if they are to remain competitive. They do not necessarily need subsidy but equally they need to avoid exploitative costs if the need is to remain competitive. The whole system of same-day ticket pricing is in urgent need of reform, and I am confident that a Labour Government will address that problem.
My case is simple. Public utilities are there to support the wider economy. Their pricing structures should reflect the public interest, not the pursuit of speculative profits. Labour has to sort this out. That is at the heart of yesterday’s announcements, which I hugely welcome.
Before closing, I congratulate my noble friend Lord Snape, an old friend of mine, on bringing this debate. He lives in the real world. Like me, he rejects a world where the “profit at any cost” approach to the provision of public services trumps the wider public interest.
The UK’s transport system is not remotely fit for purpose, as we have heard over and again in this debate. I visit the north regularly. Many industrial areas in and around the Pennines are criss-crossed by small, narrow roads—the legacy of earlier eras. These now carry commuter traffic, and at peak travel times are severely overloaded. Recently, I was trapped on the M62, not by an accident but by a gridlocked major junction. As a result, it took me just under three hours to travel the 16 miles from Leeds station to my hotel destination. Best practice would be to design motorways to carry long-distance traffic and for secondary road networks, as in other countries, speedily to convey regional and local traffic.
The train from Liverpool to Norwich, passing through and stopping at some of our great cities—Manchester, Sheffield, Nottingham and Peterborough—takes five and a half hours. If, rather than take the train from Liverpool to Norwich, you decided instead to fly from Liverpool to Sharm el-Sheikh, you would reach Sharm el-Sheikh more quickly than you would Norwich.
As in so many areas of our national life, we are now operating in slow motion as a country. We need to get a grip; we need massively to raise our game. In transport, we need to learn from the rest of the world and identify what kind of infrastructure is needed in a crowded country heading towards and beyond a population of 70 million. We need to accept that it will take 25 to 50 years to create, but we need to start now.
My noble friend Lord Campbell-Savours and other noble Lords have talked about train fares, but most are set by the Government. The train operators have to implement them, adding a few of their own fares, such as savers. One of the ideas I shall be pursuing over the next few weeks is that train fares should go to the operator on whose train you are sitting. They do not at the moment, unless it is a saver fare. All other fares are divided: if there are two operators on a route, the fare is divided between the two. That removes all incentive for operators to do better. It is a serious issue. It could be done, as now, most people have their ticket checked electronically. It would mean that the train operator has an incentive to run the trains—as other noble Lords have said, that does not always happen—and to provide decent seating and catering, clean, on-time trains, a timetable that customers want and mitigation for customers when things go wrong. Whether the operator is in the private or public sector does not matter very much. It does not need legislation and it would not cost the Treasury a penny. There is now enough information on tickets for this to be taken forward. Train operators could quickly demonstrate how good they are, if they are, or how bad they are if they are not. That leaves the Department for Transport—until there is a change—to identify whether there should be any changes.
We are having an interesting debate on all this. I do not believe it is necessarily in everybody’s interest, including passengers, to hang around for a couple of years before any legislation gets through. A great deal of this can be done now. If the management in the past few years has been bad—it certainly has been pretty bad—that can be dealt with quickly. We should look at that, rather than saying let us do nothing for two years.
I congratulate my noble friend and I look forward to hearing what the Minister has got to say.
Now, at the end of the first quarter of the 21st century, Britain’s transport network faces an unprecedented challenge on two fronts. The first challenge is to provide the means of transporting goods and people in a manner that will cater to the demands of the modern economy. The second challenge will be to staunch the emissions of the greenhouse gases to which transport is a major contributor. Current estimates indicate that transport contributes one quarter of all the nation’s domestic emissions. Most of these emissions come from road vehicles. The additional emissions of international transport are not part of this reckoning.
An inescapable judgment is that the present Government have failed adequately to meet these challenges. The denationalisation of British railways has resulted in a system that lacks the strategic oversight needed to maintain an orderly investment programme. The procurement of rolling stock has become disorganised and sporadic, and much of it is provided nowadays by foreign suppliers. The once great engineering works at Derby that served the London, Midland and Scottish Railway has passed into foreign ownership. It was acquired in 2001 by the Canadian company Bombardier and in 2021 it passed to the French company Alstom. Given the current hiatus in the procurement of new trains, it now seems to be destined for closure. Its demise represents a paradigm of national mismanagement and illustrates the danger of allowing our industries to become offshoots of foreign enterprises.
It must be acknowledged that rail transport contributes only a small proportion of the nation’s emissions of carbon dioxide and of greenhouse gasses more generally. However, there are two reasons why attention should be paid to the matter of its reform, and an incoming Labour Government would be committed to do that. First, there are numerous diesel-powered trains on the network that contribute significantly to pollution and need to be eliminated. Next, an expansion of the network would enable people and freight to be transferred from the roads. This would be an effective way of reducing emissions from road vehicles.
The modest size of the total emissions coming directly from the rail network is a testimony to its energy efficiency, and to the fact that much of the traffic is powered by electricity. There must be concern for how the electricity is generated, for it is not free of emissions. Nevertheless, further electrification should be seen as a means of eliminating diesel power. But Britain faces some difficulties in this connection that do not affect continental railways to the same extent. Many of the old bridges and tunnels have small apertures that prevent the installation of overhead electric cables. To overcome this difficulty, trains must be available that are powered by batteries and fuel cells. Here, there has been virtually no progress, for which there can be little excuse.
A major reduction in emissions must come from a major reduction in the number of road vehicles powered by internal combustion engines. There too, the steps taken so far have been wholly inadequate. The Government have backtracked on their original commitment by deferring a ban on the sales of such vehicles to 2035—five years later than originally proposed. The ban on sales of petrol-powered and diesel-powered vehicles should provide a stimulus to our automotive industry, which must adopt batteries and hydrogen fuel cells as a means of powering road vehicles. It will be an effective stimulus for the industry only if there is an accompanying development in the industries that provide batteries and fuel cells.
It is doubtful whether our automobile industry will be able to rise to the occasion. It is in the hands of foreign and international owners who see their British factories as offshoots of their main enterprises. They will be willing to close them and to move their operations elsewhere if this becomes a more profitable option. Manufacturers are liable to be drawn to places where a supply of batteries is closer to hand. The UK has failed to develop an industry that can manufacture batteries in the numbers required. There is only one manufacturer of batteries that operates on a large scale—a plant in Sunderland that supplies the Nissan car factory. It is run by the Chinese company Envision and is small in comparison with the genuine gigafactories that exist elsewhere in Europe and in China. The other automobile manufacturers in the UK rely on imported batteries. Unless we can develop our battery manufacturing, we will be in danger of losing the majority of our motor manufacturers.