Railways (Interoperability) (Amendment) (EU Exit) Regulations 2019 - Motion to Regret

Part of the debate – in the House of Lords at 1:15 pm on 21 March 2019.

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Photo of Lord Tunnicliffe Lord Tunnicliffe Opposition Deputy Chief Whip (Lords), Shadow Spokesperson (Defence), Shadow Spokesperson (Treasury), Shadow Minister (Transport) 1:15, 21 March 2019

I first declare an interest as a founding chairman of the RSSB and its chairman for five years. Many of the transport SIs have assigned duties to the Secretary of State, and on each occasion I have asked who will advise the Secretary of State and whether it is a statutory or necessary process. As far as I can see, in this case it is not clear who would advise the Secretary of State, and I think that is deficient. I will not make a long speech, because, broadly speaking, I agree with my noble friend Lord Berkeley—not something I do that often, but on this occasion he has got it absolutely right.

One reason for the affluence we all enjoy today—this has been a truth since the beginning of the Industrial Revolution—is the impact of volume. When you think of it, a small family car costs less than one year’s labour costs for a car worker. Imagine standing there with a heap of coal and a heap of iron ore, and you have to build a car in a year by yourself. How do people achieve these things? It is through volume, research, mechanisation and complexity. Complexity is constantly brought into our lives at very little cost, because of volume. This law of volume means that the £13.50 watch on my wrist, as a one-off, would probably cost several hundred million pounds to develop from scratch. Volume is king, and the curse of the railway industry is that it does not, in general, have volume production. Therefore, it is unable to amortise production costs in the same way as industries such as the automotive industry. The ERA was the basis of allowing volume to be created. This is particularly important with the signalling revolution that is under way in Europe and this country.

I therefore agree with the general approach taken by my noble friend Lord Berkeley. I hope the Minister will produce some warm words about future aspirations. It would be madness not to become an associate member of the ERA, if we are able to negotiate that. I doubt whether this is the right instrument to require that, and therefore I do not support this regret Motion in the absolute sense of how it is written, but I support the general philosophy behind it.