[Hugh Bayley in the Chair] — Rail Industry

Part of the debate – in Westminster Hall at 9:30 am on 3 June 2009.

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Photo of John Martin McDonnell John Martin McDonnell Labour, Hayes and Harlington 9:30, 3 June 2009

I sought this debate because the economic recession is hitting the rail industry hard. Despite Government efforts to develop long-term infrastructure investment plans and the exhilarating tour of the rail system by Lord Adonis, most commentators are now reporting a rail industry in crisis. The falling demand in the economy is resulting in a falling demand for rail services—both passenger and freight. The drying up of revenue resources or income is leading to cuts in jobs and services and the curtailment of some potential investment. There is a concern among many in the industry that unless the crisis is addressed, we could be going into a spiral of decline for the long term.

Some commentators this week have suggested there is evidence that the recession is bottoming out. I have serious doubts about that, particularly given the analysis of the US economy. However, if we look at the Left Economics Advisory Panel's analysis of the evidence of the 1990s recession, we see that even though the rail industry was hit hard at the bottom of that recession, passenger numbers still fell for three years after the economy reached its lowest point. The evidence suggests that for the rail industry, although there is a potential crisis at the moment, worse is yet to come both for the rail and the underground.