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Rail Reform

Thank you, Madam Deputy Speaker. The question that the Government have yet to answer is this: if we are all in this together, why is the burden yet again to fall on the fare payer and not on those who are already making huge profits that are lost to the industry and that help to drive up the cost to the taxpayer of running our railway? Therefore, we cannot support these reforms. In the coming weeks we will set out our own alternative approach to reforming the rail industry, but for today I would be grateful if the Secretary of State answered a number of specific questions of concern to passengers and commuters about her proposals. On fares, the National Audit Office has warned that the Government's fare rises, which are adding to the cost of living crises facing households, are just as likely to increase the profits of train operators as reduce costs for the taxpayer. Will the Secretary of State confirm that the entire cost of holding fare rises at just 1% above inflation for the rest of this Parliament and strictly enforcing that cap would be less than the £543 million her Department handed back to the Treasury as a result of an underspend last year? Will she therefore abandon plans to increase fares by 3% above inflation in 2013 and 2014? The Secretary of State said today that the days of above-inflation fare rises are coming to an end, so will she explain why the tender documents for the new franchises assure bidders that they can increase fares by up to 6% above inflation every single year of those 15-year franchises? Will she confirm that, under the plans she has set out today, train companies will be given even more freedoms on fares, including the right to introduce a super-peak ticket, which will hit hard-pressed commuters in particular? I welcome the commitment to extend smart integrated ticketing that can be used on trains and buses, enabling the rest of the country to catch up with London. The fact that that will enable part-time workers to benefit from new flexible season tickets is particularly welcome, but will the Secretary of State explain how that will work outside London if she remains unwilling to take steps to regulate the bus network outside the capital as we proposed? On the level of services, will the Secretary of State explain why the inter-city west coast franchise tender document allows daily service reductions of up to 10%? Will that not lead to even greater overcrowding than passengers already face? Will she explain why the final tender documents for the new franchises have also watered down the performance obligations since the earlier draft? The requirement to improve performance over the life of the franchise has been replaced by a requirement to do so unless"““good evidence can be provided as to why this is not achievable.””" Surely passengers expect the Government to insist on improvements, not simply to police the excuses that the train operating companies come up with. Does the Secretary of State understand the concerns about the train companies' new freedoms to close ticket offices and cut the number of staff on trains and platforms? Will she explain why the new franchises ask bidders only to consider maintaining the same level of CCTV on trains? The structural reforms to the industry are also deeply worrying. Does the Secretary of State understand the concerns that the restructuring she proposes has a massive accountability gap at its heart? Genuine backing for devolution, which the Government have ducked today, would see transport authorities deciding the best way to deliver rail services in each region. Should that not permit alternatives to the existing franchise model to be explored, including not-for-profit and mutual options? Does she agree that for devolution to work those authorities need a fair deal on costs, subsidies and risks? This cannot be—as is suspected—about devolving responsibility for cuts. Will the Secretary of State explain how the decision to allow deep alliances between train companies and Network Rail, with private train companies having the whip hand, fits with the need for democratic accountability? I know the Conservative party is determined to complete the job it started with its botched rail privatisation, but does she not accept that the decision we took to create Network Rail as a not-for-dividend body has served the industry well? Why is she willing to turn back the clock and take us back to the bad old days by creating what are effectively a series of mini-Railtracks? Where is the accountability to passengers, taxpayers and Parliament? How can there possibly be a level playing field in future franchise competitions if the incumbent is part of a single management team? Does she not see the clear conflicts of interest that are evident throughout her proposals? How will Network Rail continue to support the interests of freight operators and their need to access the network in a system where private train operators manage the network in each region? Will the Secretary of State explain why long-term concessions will not simply add to the costly fragmentation of the industry? Why does she believe that breaking up and selling track piece by piece will improve performance and safety? This long-awaited rail strategy is a wasted opportunity to address the structural issues left from the botched rail privatisation. Instead of tackling the fragmented structure of the industry that was the legacy of privatisation, the Government are instead creating an even more fragmented and costly structure with more interfaces, more need for lawyers and consultants, less accountability, and, at the same time, more freedoms for train companies to hike fares and cut services, booking offices and front-line staff. Even at this late stage, I hope that the Secretary of State will think again and instead seek to build consensus on the future of the rail industry, based on devolution and genuine local control with communities and passengers in the driving seat, stand up to private companies, not cave in to vested interests, and put passengers before profits. It is not too late for her to do that. I hope that she will think about it.