§ 5. Dr. Vincent Cable (Twickenham)If he will make a statement on the progress of new franchise negotiations for South West Trains. [55531]
§ The Secretary of State for Transport, Local Government and the Regions (Mr. Stephen Byers)The Strategic Rail Authority remains in negotiation with Stagecoach Group plc, which operates the current South West Trains franchise.
§ Dr. CableSouth West Trains is probably even less popular in my constituency than the Secretary of State. Does the right hon. Gentleman agree that it needs certainty to plan long-term investment? How has he responded to the specific proposal made more than a year ago that the operating companies take over track 148 maintenance? Unlike the subcontractors, who have every incentive to cut corners, the operating companies have a long-term incentive to maintain safe and reliable trains over a 20-year franchise period.
§ Mr. ByersThe South West Trains franchise is of particular importance because it is the biggest rail passenger franchise that operates in the United Kingdom. The negotiations are taking time because the franchise process must be used to drive up standards and improve the reliability of the service for the hon. Gentleman's constituents and other passengers who use the South West Trains franchise area.
On the specific point about the integration between the franchise operator—the franchise holder—and the maintenance and renewal of the track, Stagecoach Group plc has said that it is interested in taking on that responsibility. The Strategic Rail Authority is giving that proposal some consideration, but we need to work through the detail of exactly what is being proposed before any final decisions are taken. However, in the light of what happened at Potters Bar—although it is too soon to prejudge the conclusions of the Health and Safety Executive investigation—and in view of the Transport Committee's recommendations following the Cullen report, it is very clear that there needs to be a fundamental review of the role played by contractors and subcontractors in the maintenance and renewal of railway track.
§ Mrs. Gwyneth Dunwoody (Crewe and Nantwich)My right hon. Friend will be aware that the history of the franchise is a difficult one. I ask him to guarantee that whoever gets it will demonstrate an absolute commitment to producing very high-quality services for the passengers which has frankly not been the situation in the immediate past.
§ Mr. ByersI agree with my hon. Friend that the South West Trains franchise is not being operated as well as anybody would like. Its performance levels are not acceptable. I want the Strategic Rail Authority to use the franchise renewal as an opportunity to secure real improvements for the travelling public. The SRA recognises that the franchising process is one of the key levers that it has to improve the standard of service offered to the travelling public. The existing franchise is due to be concluded; it comes to an end in February of next year and can be extended by a further seven months. The Strategic Rail Authority must use the time over the next few months to negotiate an agreement with South West Trains—with Stagecoach Group plc. If the SRA cannot negotiate a franchise renewal that puts the interests of the travelling public first, it will be prepared to seek a new franchise operator which will put the interests of the travelling public first, drive up standards and improve reliability.
§ Mr. Eric Pickles (Brentwood and Ongar)What the Secretary of State has just said is very interesting. Prior to his announcement, there was an assumption in the industry that the negotiations would be concluded by July of this year. Now it is clear that they will drag on, possibly for a further year. Already we have had 14 months of indecision. The Secretary of State suggests that this is a natural process, but anybody close to the negotiations will 149 tell him that they are bogged down. The result is that there will be considerable delays in introducing passenger benefits, replacing the mark 1 slam-door trains and increasing capacity. The Government are having to underwrite the cost of new trains. These delays are damaging the confidence of the industry. Does the right hon. Gentleman agree with the Strategic Rail Authority's statement that the franchise negotiations are like "treading in treacle"? As a man who has delivered more than a dollop of treacle to the railway industry, what is he going to do to get himself out of this mess?
§ Mr. ByersThe position is that the negotiations with Stagecoach Group plc are continuing. The point that I was making is that, if they are not concluded, there is time for the Strategic Rail Authority to negotiate with a new franchise holder if appropriate. The negotiations are not delaying improvements, which are being introduced. The programme for replacing slam-door trains is on schedule, and new class-458 trains are being introduced to increase capacity. The negotiations are taking time because we need to make use of this opportunity. In terms of passenger numbers and revenue from ticket sales, we are talking about the biggest franchise in the whole of the United Kingdom, and this is a golden opportunity to improve the standard of service for the travelling public.
The Conservative party would sign up to anything, and we have seen the consequences of that approach. This is an opportunity to bring about real improvements for passengers who travel on South West Trains. We want the Strategic Rail Authority to deliver real improvements to the travelling public, and it will.