UK: The Passenger Railway Services (Public Ownership) Bill received its third reading in the House of Commons on September 3, as the first major piece of legislation to pass through the Commons under the recently-elected Labour government.
The bill would end the award of passenger train operating contracts to private companies, instead requiring contracts to be awarded to public sector operators. This marks a significant change from the previous Conservative government’s plans, which would have seen the future Great British Railways award operating contracts to private companies through a tendering process.
Secretary of State for Transport Louise Haigh said the bill ‘will prioritise passengers over private companies, putting the railways back on track, while saving taxpayers up to an estimated £150m every year in fees alone’.
The Public Ownership Bill is separate to more extensive legislation planned for later in the parliamentary session which is needed to implement wider rail reforms including the creation of Great British Railways.
Driving up standards
‘We will bring services into public hands as soon as their contracts expire’, said Haigh. ’But if operators fail to deliver in line with those contracts, if they continue to let passengers down time, and time again, I won’t hesitate to use every tool at my disposal to drive up standards, including terminating contracts early, where appropriate.
‘So, in my meetings with Avanti [West Coast] and TransPennine [Express], and in the Rail Minister’s meeting with Northern, LNER, East Midlands Railway and CrossCountry, as well as their Network Rail counterparts, we have been clear that we will not tolerate the poor performance the last government tolerated any longer. And my officials will drive improvement using the mechanisms in those contracts.’
TransPennine Express, Northern and LNER are operated by the state-owned operator of last resort.
Open access
Haigh said ’open access operators have a proven track record in driving competition and better passenger outcomes’.
‘Where there is a case that open access operators can add value and capacity to the network, they will be able to’, she added.
Industry responses
Commenting on the bill, Andy Bagnall, CEO of Rail Partners which represents train operator owning groups which stand to lose the opportunity to bid for contracts, said ’rushing to ban the use of contracted operators, before working out the details of this wider reform, is a political decision that offers few practical benefits for passengers.
‘When the government is facing huge financial challenges, it is counter-intuitive to remove the only part of the rail system with a track record of driving growth and reducing subsidy for taxpayers — nationalisation could be costing taxpayers £1bn per year by the end of this parliament.’
Transport Focus Chief Executive Alex Robertson, said ‘passengers want and deserve a punctual and reliable railway that delivers on the timetable’s promise at an acceptable price’.
