My Lords, this amendment requires the Secretary of State to publish a report on allowing a public sector rail operator to take on lines and challenge the train operators on a genuinely level playing field in the public interest, securing value for money for passengers and taxpayers.
Many noble Lords will no doubt recall the exchanges that we had at Question Time last week on the future of east coast rail. I congratulate the Minister on her performance then in defending the Government’s position, which I regarded then, and still do regard, as indefensible, but I hope that today her response will be somewhat different. We should learn the lessons of east coast rail, where we have seen the benefits of a not-for-dividend operator running a rail line.
East coast rail was brought back into public ownership in 2009 after the private operator reneged on its commitments. It is efficient, it has returned more than £600 million to the taxpayer and it invests every penny of that profit back into the company. It provides a quality service, achieving record levels of passenger satisfaction and punctuality. The new timetable that it introduced in 2011 allows it to operate 7,000 more trains each year, and it now has 500,000 more passengers. It has also delivered for passengers. This year’s fare rise was in fact a real-terms cut—something that no
private franchise was able to do. In fact, elsewhere, season tickets have risen in price by 30% since 2010—a stark contrast.
Despite that, the Government appear intent on pressing ahead with the privatisation of intercity east coast services. Will the Minister confirm that the cost to the taxpayer of reprivatising the east coast could run to £6 million? It is important that the Minister responds to this question and says what steps the Government are otherwise taking to improve the functioning of the railways. It is unacceptable that our rail lines are, according to the 2011 McNulty review, up to 40% less efficient than the best-performing European networks.
We know that the Conservative Party is unwilling to take a pragmatic approach on this issue. Its Railways Act 1993 effectively prohibits a public sector operator, except in the most restrictive circumstances. But the public do not feel this way. Only 28% of those polled support the sell-off of east coast. Can the Minister say on which side of this divide her own party finds itself? Many will recall her party’s support for a public sector operator while it was in opposition. It is time to put an end to this rigid ideological approach, which also sees the Government trying to rush through a sell-off of the 40% public stake in Eurostar before we have even seen the conclusion of my noble friend Lord Myners’s inquiry into the Royal Mail privatisation.
This amendment would give the Government the opportunity to reflect and to alter their stance. It is time to learn the lessons of east coast and legislate to allow a public sector operator to take on lines. It should be able to challenge the train operators in the public interest on a level playing field. That is the way to secure the best deal for passengers and for taxpayers. I hope that the Minister will accept this amendment so that we can move in that direction. I beg to move.