HC Deb 09 March 1999 vol 327 cc169-71
14. Mr. Tony Clarke (Northampton, South)

When he expects to set up the proposed strategic rail authority; and if he will make a statement. [73426]

The Minister of Transport (Dr. John Reid)

The shadow strategic rail authority will be operative from 1 April, under the leadership of Sir Alastair Morton. The Bill to set up the strategic rail authority proper will be introduced as soon as legislative time allows.

Mr. Clarke

I am grateful to my right hon. Friend for that response; my hon. Friends and I believe that the sooner we have the SRA the better. Will my right hon. Friend comment on the role that the SRA, its shadow and his Department can play in strategic planning and, in particular, in protecting access to the main line for local services? In my constituency, Silverlink Trains is concerned that access to the west coast main line, following its modernisation, could be restricted by main line operators trying to seize as much track time as possible.

Dr. Reid

As my hon. Friend will realise, and as I said earlier, one of the grave problems caused by privatisation of the railways is the fragmentation of the system. The strategic rail authority, in its shadow form, and later in its proper form, under Sir Alastair Morton will be responsible for establishing a network-wide strategic vision and implementing policies on the ground that will contribute to the network nature of our railway system. Whatever benefits have derived from privatisation, the vast majority of people are well aware of the problems with punctuality and reliability, and the fragmentation of the network that has been a serious impediment to the sort of railway system that we want to build. The SRA will have a crucial role in rebuilding the system.

Mr. Tim Boswell (Daventry)

While various investments and some co-ordination may be desirable, how much extra investment will derive from the creation of the SRA?

Dr. Reid

The hon. Gentleman will be aware that it is not the purpose of the SRA to invest yet more taxpayers' money. The level of subsidy that we currently give is tolerable, but it is due to reduce. Enough taxpayers' money was wasted by the previous Government when they sold off Railtrack at a rock-bottom price, thus losing almost £2 billion. The purpose of the SRA is to bring back some network-wide capacity to our railway system, and to give some long-term strategic vision to it. That will be a primary role for the SRA and I am sure that it will be one of its successes.

Mr. Boswell

When?

Dr. Reid

The answer is in the short, medium and long term. We have now engaged with the railway companies and with Railtrack. We will see year-on-year improvements in performance and we will be back every year to see that improvements are delivered for the passengers.

Dr. Alan Whitehead (Southampton, Test)

Given that 86 per cent. of Railtrack's income comes from carriage charges, does my right hon. Friend intend to ask the SRA, when it has been set up, to examine the present system of subsidy, under which £1.5 billion goes to the rail operating companies, which then pay Railtrack, which does not invest in our rail system? Does my right hon. Friend accept that it might be simpler to give the money to Railtrack with strong investment incentives attached?

Dr. Reid

As my hon. Friend will know, that is a matter for the regulator, whom we have asked to consider the way in which public money is put into our railways through Railtrack. We want to ensure that the blame culture, the history lessons and the transposition of blame from Railtrack to the companies and vice versa come to an end. Passengers want a decent, affordable, accessible, safe and secure railway system. The House wants that too, and the packed House I see around me is surely a testament to how seriously we all take the problem of our railways.

Mr. Matthew Taylor (Truro and St. Austell)

It was widely reported in the autumn that the Deputy Prime Minister had won the backing of his Cabinet colleagues for a strategic rail Bill this year, if there was progress with the House of Lords Bill. That progress has happened, but there is still no strategic authority Bill. When will it be introduced, and may we continue to imagine that it will happen during this Parliament?

Dr. Reid

The hon. Gentleman is quite right to say that the Deputy Prime Minister was so persuasive that his colleagues agreed to add to the six Bills that he already had in the Queen's Speech. Should the House of Lords and, in particular, the Opposition prove sensible in finding a solution to the problem of the early retirement of the House of Lords, we could introduce a Food Standards Agency and a strategic rail authority Bill, but it remains the position that we depend on progress in the other place.