Transport Secretary: East Coast Franchise

Part of the debate – in the House of Commons at 3:27 pm on 23 May 2018.

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Photo of Grahame Morris Grahame Morris Labour, Easington 3:27, 23 May 2018

It is a privilege to speak in this important debate. I would like to recognise the expertise of many members of the Transport Committee, on which I have the honour of serving.

Listening to the debate, I cannot help feeling a sense of déjà vu. The shortcomings of privatisation and the franchising process are demonstrated by the private operators running the east coast main line. I was slightly amused when the former Rail Minister, Stephen Hammond, who is very affable, talked about the golden age of privatisation and how wonderful the new rolling stock was. I just checked the age of some of the rolling stock on the east coast main line. The InterCity 125 diesel-powered high-speed trains were introduced in 1976; the 225s, which were the mainstay, were introduced in 1989; and the Pacer trains on the Northern Rail franchise were introduced in 1984, so let us have a sense of realism.

This is the third occasion in a decade that the Government have had to accept back the keys to a failed east coast franchise. A failure once we can excuse and twice is unfortunate, but the third time is a cause for censure and for reflection. It demonstrates that the Government’s desire to privatise the east coast main line is nothing more than adherence to blind political ideology.

It is ironic that the Transport Secretary, as a leading Brexiteer and staunch privateer, now allows our railways to be run by any state-owned company except one owned by the British state. The right hon. Gentleman might like to dust off an old phrase to use in this context: “Take back control”. He would be in good company, as numerous surveys show that 70% of the public support calls for the railways to be publicly owned—run in the public interest, not as a cash cow for private operators.

I remind the House that, when in public ownership, the east coast main line returned over £1 billion to the Treasury to be used either to upgrade the rail service or for vital public services. In 2015, we were told that re-privatising the east coast main line represented “best value” for commuters and taxpayers, and I do not believe the Secretary of State has adequately explained how that can be reconciled with the decision to bail out Virgin Stagecoach to the tune of £2 billion.

Why do the Government not hold such companies to their contractual commitments? The noble Lord Adonis, with whom I do not always see eye to eye, gave some interesting evidence to the Transport Committee. He questioned why it is acceptable for corporate entities to walk away from their commitment to us—the taxpayers—to my constituents and to the Government. We really should take a harder line with the private train operating companies. We should block companies that have corporate structures and base themselves in tax havens from bidding for public contracts. A decision to overbid on such a contract is simply corporate irresponsibility, and the taxpayer is being fleeced time and again.