Railtrack: Performance (Hansard, 5 July 1999)

§ The Parliamentary Under-Secretary of State, Department of the Environment, Transport and the Regions (Lord Whitty)
My Lords, better punctuality and more capacity are both fundamental to the high-quality, high-growth railway that we want to create. Railtrack clearly needs to do more to meet its obligations. We shall look to the new regulator, Tom Winsor, who takes up his post today, to ensure that it does so.

§ Baroness Thomas of Walliswood
My Lords, I thank the Minister for that Answer. It is a matter of satisfaction to many people that the new rail regulator has described himself as determined to ensure that things go better in the future than they have done in the past. Nevertheless, it must be a matter of grave concern to the Government that in this country we are renewing our track about half as quickly as other major European countries; that Alastair Morton, who is the Chairman of the shadow rail authority, has described the investment plans of British Rail as a sham because so much of it is really maintenance money; and, finally, that there is now a wide assumption that the west coast main line upgrade will not make available the extra capacity for slower passenger and freight pathways which were originally promised.

§ Lord Whitty
My Lords, in so far as that was a question, Railtrack's position is clearly not up to scratch. It is certainly an issue which the new rail regulator must address. However, it is true that Railtrack has managed to double the level of investment. The jury is still out as to whether that has met the requirements of the operators and the Government, even in the short term. Clearly, we shall have to make a judgment on the totality of Railtrack's proposals in the medium term. We hope that the combination of a sharper rail regulator—I have every confidence in him—and the way in which Railtrack is now involved in improving performance, along with the operators and the Government, will lead to a significant improvement in that performance over a relatively short period of years.

§ The Countess of Mar
My Lords, is the noble Lord aware that the noble Baroness's Question is extremely appropriate? I travel regularly from Birmingham New Street to Euston. This morning, there was not a train out of Birmingham New Street until eight o'clock because Railtrack is undertaking engineering works at Coventry. By how much is Railtrack subsidised by the Government and how does that compare with pre-privatisation subsidies?

§ Lord Whitty
My Lords, Railtrack is not subsidised directly by the Government. Government subsidies are paid to the operators and the operators pay access charges to Railtrack. The question of whether a direct subsidy should be paid to Railtrack will be addressed by the strategic rail authority when it comes into being. As the House will know, the Deputy Prime Minister indicated that he intends very shortly to introduce a railways Bill in another place.

§ Lord Berkeley
My Lords, will the Minister confirm that the regulator has the power to fine Railtrack up to 10 per cent of its annual turnover if it fails to deliver? Will he confirm also that, as that money goes to the Treasury, it does not help reinvestment in the railway network? Will he ensure that included in that new railways legislation is a provision that the money is reinvested in the railways?

§ Lord Whitty
My Lords, the provision to be able to fine Railtrack up to 10 per cent relates to competition legislation, not all of which is in place. But those regulations will allow the regulator to do as my noble friend says. The question of hypothecation of that revenue will no doubt be a matter for interesting discussion among Ministers. I note the point which my noble friend makes.

§ Lord Monkswell
My Lords, the railways were nationalised because under private ownership they could not be run at all satisfactorily in the national interest. Bearing that in mind, does my noble friend agree that the new railways legislation to be introduced should include the option of renationalisation if it is demonstrated again that the private sector cannot run the railways?

§ Lord Whitty
My Lords, it is our aim to make the current structure of the railways work, difficult though it has proved in view of the structure we inherited and the inadequate regulatory powers. We believe that the combination of an effective regulator and the new powers which we intend to introduce for the strategic rail authority, through the Bill, will give us the power to make that system work.

§ Lord Allen of Abbeydale
My Lords, in connection with delays, if a train is recorded as having arrived on time, does that mean it has arrived spot on or is it allowed a few minutes' delay? That seems to happen to my train most mornings.

§ Lord Whitty
My Lords, I believe that a delay IA a few minutes is allowed, but I should need to write to 577 the noble Lord to give him a precise Answer. If the operator's performance has been 90-plus per cent, I can assure the noble Lord that the delay will not have been significant. We are looking for that level of performance; but it has yet to be met in all parts of the railway network. That is due in part to the railway operators and in part to the inadequate infrastructure.

Earl Attlee
My Lords, no man can have two masters. With its involvement in the Tube system, will Railtrack work under two regulatory regimes with conflicting interests? If Railtrack's performance leaves so much to be desired, why involve it in the Tube system?

§ Lord Whitty
My Lords, although in many respects Railtrack has poor management and poor project performance, it has much expertise. There are considerable advantages in integrating the overground network with the sub-surface London Tube network. If we succeed in reaching an agreement with Railtrack in relation to that which is not yet delivered, there will be considerable benefits to the travelling public. Railtrack would be operating under a contract to London Underground, whereas the rest of the rail network operates under regulations.

§ Lord Cledwyn of Penrhos
My Lords, is the noble Lord aware that the line from London to Anglesey has improved a great deal? Is he also aware that when I travelled on the nine o'clock train the other day I had a splendid breakfast for nothing?

§ Lord Whitty
My Lords, I am so gratified that my noble friend had that experience and that there has been some improvement on that line. I am sure that the House will register its appreciation that he has brought that to our attention.