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Sustainable Railways

The hon. Gentleman makes important points and underlines the need for better integration of the rail service as a whole. The report also concentrated on financing, which must be fundamental to the future success of our rail service. The Government propose a subsidy of £15 billion for the period from 2009 to 2014—a reduction on the previous period. The Committee expressed extreme concern that the sharp move away from operational subsidies would result in high fare increases. At the start of the new control period, half the Government subsidy goes to franchise support. By the end of the period, it will be less than 25 per cent. As Greengauge21 told us, a change in the balance"““from roughly 50 per cent. passenger funding up to over 70 per cent.””" over five years would be too radical and too fast. We were also concerned to see that funding was based on a 34 per cent. growth in passenger revenue, with fares income predicted to rise from £6.9 billion in 2009-10 to £9 billion by 2013-14. The Committee gave a warning and I should like to quote from this section of the report as it is relevant to what is happening today, as well as our concerns for the future. It states:"““We are deeply concerned that the rapid shift away from taxpayer contributions and towards passengers paying a significantly larger share of the cost…will be detrimental to passengers and the future of the railways alike...if a full-scale economic downturn were to develop, passenger numbers are unlikely to grow as fast as projected…We therefore recommend that the Government review the planned shift between taxpayers' subsidy and the fare box with a view to pacing this transition over a significantly longer period of time.””" It is now reported that perhaps five franchises are on what the Department calls a red light list. We know from experience over the past month that many fares have risen by up to six or seven times the rate of inflation. Our fears are becoming reality already. Will my hon. Friend the Minister tell us when he replies to the debate whether the Government have assessed the rate of passenger growth compared with the projections? What attitude are the Government adopting towards the train operating companies that are perhaps seeking renegotiation of franchises or abandoning them? Will train services be cut? I raised that issue with my right hon. Friend the Prime Minister at the sitting of the Liaison Committee this morning and I was very pleased to hear an assurance that services would not be cut, but that raises other issues about what steps the Government will take. This is not just fantasy and people expressing fears. It has been reported that Dr. Mike Mitchell of the Department for Transport told the Public Accounts Committee that perhaps up to five franchises were on the Department's red light list. This is a real issue and we need answers to it. All these issues are ongoing. In fact, the Transport Committee is currently conducting an inquiry on fares and franchising. We shall report in due course. I am very pleased that the Government's response did not end with their formal reply on 20 October 2008. I welcome the new announcements that have been made since that time, many of which are in line with our recommendations. I certainly welcome today's announcement about new trains. I congratulate the Government on their growth plan and on their ongoing actions. However, we need to ensure that environmentally friendly rail travel can continue to grow through the recession and beyond. I hope that the Committee's report, ““Delivering a sustainable railway: a 30-year strategy for the railways?””, will be a contribution to securing that end.