§ Motion made, and Question proposed, That this House do now adjourn—[Mr. Mike Hall.]
§ 8.2 pm
§ Mr. Elfyn Llwyd (Meirionnydd Nant Conwy)I begin by referring to the transport powers that have been transferred to the National Assembly for Wales. I am wary of what Madam Speaker had to say on Wednesday, so I shall be careful about what I say. As I understand it, there is some limited rail investment through strategic development schemes and the Assembly can fund or regulate trunk roads, bus services and integrated transport packages. Local authorities have powers to fund local road construction and maintenance, bus services and some limited rail service development.
Integrated public transport policies are among today's big ideas, and rightly so, but there is a considerable problem in ensuring an integrated, sustainable transport policy for Wales—the glaring absence of any substantial powers under present legislation for the national authority to co-ordinate rail transport with other forms of public transport.
The White Paper on devolution suggested that the Assembly should be able to monitor the performance of the Office of Passenger Rail Franchising. It said:
The Assembly will also be able to invite evidence from various regulatory bodies including the Office of Passenger Rail Franchising. Government policy therefore appears to be that the National Assembly should be able to monitor the activities of these bodies and make its views known. However, these bodies will remain accountable to Parliament at Westminster.One way forward for rail services in Wales may be through local authority funding. The Assembly has just taken over the transport powers of the Welsh Office, one of whose functions was to oversee passenger rail services in Wales. The departmental report for 1998 stated that more than £8 million was allocated to local authorities for improvements to the rail infrastructure between Cardiff and the valleys for the period 1996–97 to 1998–99. However, an all-Wales passenger transport authority would be preferable, as it would provide considerably more investment. The establishment of such a body would require primary legislation. At present, only metropolitan counties are passenger transport areas: only they, therefore, qualify for the establishment of passenger transport authorities or executives.
The financial implications of funding and its sources will be an issue. Other matters to be considered will be block grants, the transfer of current Opraf payments, investment funding for railways from the Department of the Environment, Transport and the Regions, and so on. The addition of the railways to the National Assembly's expenditure portfolio would require a negotiated settlement estimated at between £80 million to £100 million, based on passenger miles within each franchise operating in Wales. That figure would, of course, be reduced in line with the subsidy profile.
Although there is a need to ensure that Wales is perceived as a country that is efficient and easily accessible to road-based inward investors and tourists, there is also a longer-term requirement for a sustainable transport policy that reduces both pollution and congestion. There is no doubt that Wales's road and rail network has been grossly underfunded for the past quarter of a century. To be frank, the picture is a bad one.
1283 There is a lot of work to be done, and the Minister more than anyone will realise how important it is to put the right transport infrastructure in place. It is likely that the greening of the road building programme by the previous Government was a Treasury-led, cost-cutting exercise. The Welsh Office has published two documents that are appropriate starting points, but they must be backed by adequate funding if policies are to be turned into actions and are not to become mere platitudes.
The adequacy of the Welsh block grant—now transferred to the Assembly—will impact on road and rail expenditure, but at present no account is taken of any particular transport needs, nor of the current state of infrastructure in urban and rural Wales. Therefore, to overcome past underfunding, considerably higher amounts are required. The National Assembly has no control over expenditure in certain areas, such as major railway infrastructure. It faces the challenge of ensuring that Wales receives its fair share, and its relationship with the Strategic Rail Authority will be crucial.
The consultation process on the SRA began yesterday. I understand that the authority's main purpose will be to provide a clear strategic direction for rail transport in Britain. It will also promote—inside the Government and among the public—passenger and freight transport by rail, and it will foster a climate that encourages private investment in the railways.
The SRA will be the single body, accountable to the Secretary of State, responsible for strategic planning. It will co-ordinate and supervise the activities of the rail industry, as well as the disbursement of public funds. It will also have the clear aim of co-ordinating strategic objectives with the Government and other interested parties, which include passenger operators, consumers, freight operators and Railtrack. The SRA is also tasked to lead and promote a radical improvement in the integration of rail with other transport modes, and to maximise benefits to the rail user as far as possible, acting as an advocate of passengers and freight consumers.
The Department of the Environment, Transport and the Regions enumerated its concerns and aims in its recent response to the Select Committee on the Environment, Transport and Regional Affairs. No one could argue with the Department's aims, but Wales is at a gross disadvantage. The National Assembly for Wales has a relative lack of power to oversee the strategic development of rail services in comparison with both the Scottish Parliament and the Greater London Authority. That is a raw deal for our railways. Creating an integrated transport policy will not be easy unless the powers are right.
The SRA will work closely with key organisations, passenger transport executives and co-signatories to several franchise agreements. The Scottish Executive will have power to instruct and guide the SRA on certain aspects of rail services that are wholly in Scotland. The GLA will be able to procure enhanced rail services from the SRA and propose changes to the pattern of services in London. The Welsh Assembly, by contrast, will be consulted only on passenger service specifications. None of those powers will compromise the SRA's duty to plan the operation and development of the rail network strategically across Great Britain.
1284 The Welsh Assembly plainly has considerably weaker powers than the Scottish Parliament and the Greater London Authority, a distinction crucial to the economic development of Wales. A Cardiff office of the SRA could help properly to integrate rail services in Wales, which are currently poor. Back-Bench Members whinge, and Ministers get fed up of us, but I say nothing against the Minister by pointing out that rail services in Wales are probably at their lowest ebb.
Siting an office in Cardiff could help in the short term. Consultation is beginning on the proposed Railways Bill. Will the Minister convey the idea of a Cardiff office to the Secretary of State for the Environment, Transport and the Regions? It would help our economy as well as developing a sustainable transport policy for Wales. I want a passenger transport authority for Wales—but for the time being, a Welsh SRA would be a useful step.
Last month, the Welsh Consumer Council reported on railways in "The European Connection: A report on transport connections to Europe". It found that railways in Wales were in a perilous state, never having been so poor. It observed that the system in Wales had become fragmented, failing to deliver any of the perceived benefits of privatisation. It opined that the quality of service to passengers had reached an all-time low.
Old trains are being transferred from routes in England to Wales. Recently, a relatively new set was taken off the north Wales coast railway to be replaced by a 1957 set. That is not good enough on one of the main lines in north Wales. The report also observes that the Assembly will control budget subsidies for roads, but will have no control over railways. The different administrative locations will make integration and co-operation difficult. Its firm conclusion is that the National Assembly should create a passenger transport executive so that—inter alia—the needs of passengers come first, and so that all forms of public transport are integrated and there is sufficient investment by rail operators in new rolling stock, staff and stations to provide an efficient, all-round service.
Three months ago, some high-powered Japanese entrepreneurs visited north Wales. They were intent on investing in the old county of Clywd in the eastern part of north Wales. Their arrival on train was delayed by two hours; shortly afterwards, they decided that investment was not a good idea. If that is not a graphic example of how the situation is hitting us economically, I do not know what is.
We are beginning the consultation period on the Railways Bill. I urge the hon. Lady to bring these matters to the attention of her right hon. Friend the Secretary of State, so that the legitimate and deeply held concerns of the Welsh travelling public are met and so that, at the end of the day, Wales, too, will have a first-class, integrated public transport system with an excellent railway at its heart.
§ The Parliamentary Under-Secretary of State for the Environment, Transport and the Regions (Ms Glenda Jackson)I congratulate the hon. Member for Meirionnydd Nant Conwy (Mr. Llwyd) on securing this debate and providing an opportunity for the House to discuss railway regulation in Wales.
I am sure that the hon. Gentleman is aware that one of the key objectives identified at the national rail summit in February was to improve the quality of service for 1285 passengers while obtaining the best possible value for money for the taxpayer. One of the steps towards achieving that objective was the setting up, on 1 April, of the shadow Strategic Rail Authority, under Sir Alastair Morton, with Mike Grant as the new franchising director. The work of that body is well under way. Our new Railways Bill will formally establish the Strategic Rail Authority on a statutory basis, as well as aiding our regulation of railways in general—including those in Wales.
Our Bill will put right some of the more glaring faults of the previous Administration's privatisation. It will amend the tangled mess of railways legislation left by that Administration. They left our railways without a single voice, champion or focus. The railways were run as separate businesses, not a national network. What does our Railways Bill do?
As I said, the Bill establishes the Strategic Rail Authority. It sets out the mission statement for the SRA: to promote the use of the railway network for passengers and for freight; to secure the development of the railway network; and to contribute towards integrated transport. The Bill requires the SRA to produce a strategy or strategies to fulfil that mission. It transfers the duties of consumer protection to the SRA and a simplified closure procedure to the Secretary of State. It retains the rail regulator as an independent economic regulator, subject only to high-level guidance from Ministers on the Government's transport policy. It allows the SRA to ask the rail regulator to direct owners of railway facilities, such as trains or stations, to enhance them or provide new facilities. The Bill will enable the SRA to step in and operate trains if a franchise goes bankrupt, or if there are no acceptable private sector bids when a franchise is re-let.
The Bill allows the SRA, and the rail regulator, to impose more effective sanctions on those who break the terms of their franchise agreements or licences. In contrast to the position under the Railways Act 1993, contraventions that may have caused widespread inconvenience and loss, but which have been remedied by the time lengthy enforcement action is completed, could in future attract penalties. The Government have agreed in principle that the SRA will be able to retain income from penalties and reinvest it in the railways.
It is vital that our railways are run as a national network and because of that they must remain a reserved matter. However, that will be to the advantage of Wales—for which proper rail links are, I know, extremely important. Indeed, in his closing remarks, the hon. Gentleman demonstrated that vital importance in respect of inward investment.
We also know and respect the needs and concerns of the devolved Administration. My right hon. Friend the Deputy Prime Minister has agreed with the our right hon. Friend the Secretary of State for Wales that there will be Welsh representation on the Strategic Rail Authority, and that the authority will consult the Assembly about the exercise of its functions as they relate to Wales.
The hon. Member for Meirionnydd Nant Conwy suggested the establishment of a separate SRA for Wales, but, as I have said, what is overwhelmingly important is for us to return to the concept of a national integrated network. An SRA for Wales could not form a strategy for the whole network, and that would disadvantage Wales as well as the wider railway network.
1286 It is essential for the SRA to be able to ensure that the railways are run as a national network, and to produce a strategy for the whole network. Most Welsh services start, end, or pass through England. Cutting them off—making them a separate entity—would lead to even more fragmentation. As I have said, proper, coherent links are vital to Wales.
The hon. Gentleman referred to the different position in Scotland. The position is different there because the network is largely self-contained. A Scottish policy will not have the impact on the rest of Great Britain that a Welsh policy might have; nor will it fragment Scottish services. The powers of Scottish Ministers will, however, be exercisable only within the Great Britain strategic framework.
Given the huge pressure on legislative time in the House of Commons, the introduction of the Railways Bill now is, we believe, an unequivocal demonstration of the resolve of my right hon. Friend the Deputy Prime Minister, and indeed of the Government as a whole, to fulfil our side of the bargain and improve our railway services. That will be of inordinate benefit to Wales, and to Great Britain as a whole. I am sure the hon. Gentleman will agree that it is both a welcome and a fundamental step towards a better railway, which, in turn, will feed into the aims and objectives announced last year in our integrated transport White Paper.
An obvious factor that influences people' s choice of transport is performance. The main concern of passengers is that their trains run, and run to time. As the hon. Gentleman said, performance in many parts of Wales is, or has been, below par, notably the service recently provided by the Valley Lines—formerly known as Cardiff Railway—and Wales and West Passenger Trains. Long-term problems have also been experienced on Great Western Trains and the west coast main line.
The franchise agreements for all but InterCity operators include a punctuality incentive regime, under which companies are rewarded for improved performance or penalised for poor performance. It will come as no surprise to rail users in Wales, or indeed to the hon. Gentleman, to hear that between them Valley Lines, Wales and West Passenger Trains, Great Western and Central Trains paid more than £4 million under these regimes in the financial year up to 31 March 1999. That is a lamentable advertisement for rail services in Wales.
We have made it clear that poor performance by train operators will not be tolerated. Last November, an action plan was agreed with franchisees and Railtrack to secure short-term improvements in performance. Measures agreed included 800 new train drivers, 500 new vehicles, a joint "hit squad" to identify and tackle the worst 50 black spots, a national "trouble shooter" team to tackle punctuality problems, and a new national passenger survey to find out what passengers think about their rail services, and to help measure performance across the network.
As I have said, building on the success of the November meeting, the national rail summit took place in February to assess progress on the action plan, and to put in place solutions to tackle medium to long-term problems. We also launched the national passenger survey, and the start of a consultation with the rail industry and passenger representatives on a new standard measure of overall performance to reflect the experience 1287 of passengers more accurately. The rail industry also accepted our challenge to improve punctuality over the next year, and committed itself to deliver real performance improvements that are measurable year on year.
When franchises are renegotiated, past performance will be one of the criteria on which operators are assessed and considered for future involvement in the industry. We have warned all train operators that those who fail to improve services will have no long-term future in our railways.
There are some significant new rail developments in Wales. The first of these is bilingual signing, and I understand that Wales and West Passenger Trains is in the process of installing bilingual customer information systems at all of the stations within Wales that it manages. I welcome that initiative as an example of a train operator responding to the wishes of passengers in Wales. The second is the north to south Wales fast train service, which was announced on 25 March. A feasibility study has been conducted and, although funding has yet to be finalised, the anticipated start date remains summer 2000. Thirdly, while I welcome the increase in frequency of Great Western trains between London Paddington and Bristol from June, I welcome even more its increasing the frequency of London to Cardiff trains by 2001.
We are committed to encouraging more people to travel by rail and to ensuring more investment in the rail network. That is why we have made available additional funding for a new rail passenger partnership scheme, launched on 24 May and aimed specifically at providing support for locally sponsored services that are not commercially viable. Applications for funding will be 1288 assessed on planning criteria that take wider social benefits into account. Guidance has been issued to local authorities on how to bid for funds under that scheme.
Proposals for RPP support can be submitted by various bodies, including local authorities, passenger transport executives and authorities, and train operating companies, either as individuals or consortiums. Local authorities and others are encouraged to come forward with proposals. Formal bids will be appraised to ensure that they are consistent with Opraf's planning criteria and the franchising director's objectives, instructions and guidance. Bids will have to demonstrate the achievement of value for money in the delivery of the scheme. Copies of the RPP bidding guidance and planning criteria have already been sent to all local authorities.
I repeat, our perception is that it is vital that our railways are run as a national network, and that that will be to the advantage of Wales. We recognise the needs and concerns of the devolved Administrations and we are listening to them. The Government would strongly and wholeheartedly endorse the points made by the hon. Gentleman about the needs of railways as part of a properly integrated transport system. However, as I said, we believe that to split off the railways in Wales would make the situation in Wales even worse. Many of the problems that passengers in Wales suffer are, as we know, owed to the failure of previous Administrations adequately to invest in our railways. The Government are committed to change that, not only by our policies, but by our approach to regulation and through the additional funding that we have found for our railways. I assure the hon. Gentleman and all the people of Wales that Wales is central to our considerations and to the delivery of our programme.
§ Question put and agreed to.
§ Adjourned accordingly at twenty-eight minutes past Eight o'clock.