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Conservative and Unionist Party

5,731 spoken contributions under 12 words (interjections such as “Will the hon. Member give way?”) are hidden. Show them

  1. ParliamentMims Davies

    Water (Special Measures) Act 2025: Enforcement

    It is a pleasure to serve under your chairmanship, Dr Allin-Khan. I congratulate the hon. Member for Harrogate and Knaresborough (Tom Gordon) on securing this welcome and—particularly in my constituency—timely debate on regulation, public trust and customers’ experience. I am participating on behalf of my constituents in East Grinstead, Uckfield and the villages. Many people will know that Sussex and Kent were at the epicentre of the recent outages, despite the guidance we had on the Friday before the taps were turned off that it would be elsewhere. Today is another opportunity to welcome the new powers in the White Paper and talk about how we hold the regulator, Ofwat, to account. I put on the record my huge thanks to the Minister and her team in DEFRA for listening to me on behalf of my constituents and holding these companies to account. What has happened over the weekend is clear. I will go through my list of experiences. Before the boundary changes, in August 2020, hundreds of homes were affected in my patch and in East Sussex. In November 2022, 30,000 people were affected, including in my part of the world, and in Kent. In December 2022, in Uckfield and in Crowborough in the constituency of my hon. Friend the Member for Sussex Weald (Ms Ghani), 16,000 households were affected. In June 2023, thousands of homes were affected again across the Mid Sussex district. In January 2024, Sussex and Kent homes were affected by the impact of Storm Henk. Then Sussex and Kent were again affected in November 2024, and again in January 2025. Dr Allin-Khan, you will be interested in this. I met today with Karen McDowell, the head of Sussex integrated care board, to consider the impact on the Queen Victoria hospital in East Grinstead. I thank its leader Abigail and her team for their stoicism during the outage. In the midst of the sanitation issue, with a norovirus crisis and a flu crisis in our local NHS, when we did not have water across my area, people from Surrey, where they declared an emergency, were being sent to my local hospital for treatment. It is absolutely outrageous. People are now turning to the point of compensation. If this is caused by a storm and an act of God, that is one thing. The Minister knows that this is about a bulk supply issue linked to South East Water. Ultimately, if there is any break in service and if licence conditions are broken, it is ultimately my constituents who cannot function. Today’s written statement mentions the need for a “joined-up regional water planning function and framework to improve local decision making and delivery.” I recognise the need for a broader debate on the Water (Special Measures) Act 2025, building on the Environment Act 2021, to make sure that there is a proper answer. My constituents are turning at the moment to what this means in terms of compensation. The break in service is absolutely front of mind. As I have spelled out, this is not the first time. Unless there is leadership and structural change, I truly believe it will not be the last. Let me give the example of the Ashdown Park hotel. There are 50 staff members living on the site. It was closed for days, with no response from the Saturday of the outage through to the reopening. Birthdays, spa days, treats and celebrations were all destroyed, with frontline staff left trying to explain. I urge my constituents and those watching today to sign up to the priority list. Many vulnerable people, particularly in our villages, were left waiting for water. I know that is an issue that both the shadow Minister and the Minister are particularly worried about. There are also the needs of livestock. Horses need to drink 5 to 8 gallons of water every day. This situation has been tearing out people’s hearts and souls. They have been so worried. For me, these outages are a moment of crisis in the water sector. I have people cancelling their direct debits at the same time as larger bills are falling on their mats. I am conscious that many people want to speak, so I will come to a conclusion. I am grateful for the opportunity to speak on something that matters to me deeply. I ask the Minister to work with me on behalf of my constituents to hold the leadership—the chair, the chief executive and the team—to account. I hope that this new vision, with this White Paper, turns into action, change and accountability. Colleagues have spoken about the opportunity for shareholders to do what they can. NatWest Group holds a large stake in South East Water. In today’s Telegraph, it notes that it wants the company to be held to account for supply issues, and for those issues to be “fully resolved with urgency”. Other shareholders also say they want this addressed and they want resilience in the services. So do we, so do our constituents, and so should everyone.

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  2. ParliamentMims Davies

    Water (Special Measures) Act 2025: Enforcement

    The hon. Gentleman is making a speech that I feel I could make. I feel deep sorrow for him and for his constituents. Given the amount of outages, it is very surprising that the crisis communication does not get any better. Water companies should be experts in it, but are clearly not. My concern is that even when we give them information that we believe is true, when they offer information back it very often is not true. I have asked, “Has the water station that you’ve said has been set up in my patch actually opened?”, and got the answer, “Yes.” I then told people in good faith but it turned out it had not. That is a fundamental problem, is it not?

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  3. ParliamentMims Davies

    Water (Special Measures) Act 2025: Enforcement

    My constituents, particularly businesses, want clear understanding around compensation, but the area that interests me is the chief engineer role. The guidance that was given to her fellow Minister, the hon. Member for Coventry East (Mary Creagh) before the recent 16,500-property outage in East Grinstead and the villages was that it would affect Sussex Weald and Crowborough. How can this new chief engineer help us to get South East Water to be clear about what is already going on?

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  4. ParliamentMark Pritchard

    Topical Questions

    When President Trump was frustrated with President Zelensky last year, he withdrew intelligence sharing with Ukraine for a short period. Will the Foreign Secretary, who oversees GCHQ and MI6, assure the House and my constituents that should such a threat that intelligence sharing with the United Kingdom be withdrawn, even for a temporary period, develop from the White House at some point, she and her counterparts will remind the US President that the Five Eyes partnership also keeps Americans safe every single day of the week?

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  5. ParliamentMark Garnier

    Draft Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2025

    I start by welcoming the general thrust of this incredibly important legislation. The Minister and I have sparred a number of times in the past, and so far we have managed to keep it to under five minutes; I must now apologise to the Committee, as I might take a little longer. As the Minister said, work on this piece of legislation was started under the previous Government, and it is absolutely vital for the City of London to maintain its presence as a global financial leader. The City of London has been innovative and thought-leading for a few hundred years now. Jonathan’s Coffee House was the first to advertise share prices, from which the London Stock Exchange grew, setting the model for equity ownership the world over; similarly, Lloyd’s Coffee House created the insurance market that we see today. As new technology comes forward, it is vital that the City of London, or the UK’s financial services sector, not just adopts this new technology but leads on it, and leads on it with the intelligence and experience that we have gained over the previous centuries of legislating in this area. As we move forward in the age of new technology, we need to legislate. This SI is possibly the best example of how we can embrace that change. Indeed, the short time that we have been given to debate this piece of legislation belies its importance and the months of consulting that lie behind it. While the Opposition are absolutely behind the thrust of the SI, we believe that it is slightly flawed in its drafting. It appears to draw together two separate things: in very simple terms, it appears to confuse cryptoassets with stablecoins. Cryptoassets—bitcoin and the like—are commodities in the same way as a bond, a share or other commodities. They are items that are bought and sold with a view to their value changing. However, a stablecoin is an asset fully backed by a fiat currency, and thus a proxy of that underlying fiat currency. A stablecoin is part of the payment system and should be regulated as such. I am someone who understands the principles of this legislation, but sometimes it is important to have the help of people who really get the law. I am grateful to a couple of people who have helped me to put this argument forward today, in particular Mike Ringer, who is the founder of ReStabilise, but more importantly Professor Sarah Green, who was a law commissioner for commercial and common law at the Law Commission of England and Wales from 2020 to 2024. She was responsible for the Electronic Trade Documents Act 2023 and the Property (Digital Assets etc) Act 2025. As I have discussed, this draft legislation establishes the regulatory parameter for cryptoassets in the UK, including stablecoins. As such, what we are discussing is crucial for the delivery of HM Treasury’s often repeated policy intention for the UK to become a global hub for digital assets and blockchain technologies—something that we are 100% behind. That means that a properly drafted Bill is mission critical. The ability of the UK to become a global leader in the digital economy, and to retain its position as a leading international financial centre, depends on the ability of this piece of legislation to set out clearly, decisively and unambiguously how it will distinguish between different types of cryptoassets. Without strong, decisive and nuanced categories, the potential for effective regulation, and therefore optimum growth, will be lost. This is not an opportunity to be squandered, yet the current drafting threatens to do just that. The Government’s policy note that accompanied the original draft SI, published in April last year, states: “This is a draft SI and should not be treated as final. It is being published for technical checks, such as any significant errors or oversights in the legal drafting that would mean that the provisions in this SI would not achieve the desired outcomes explained in this note, or that could lead to other significant unintended consequences.” My goal today is to explain why an oversight in the current drafting means that the SI’s provisions do not achieve their stated aim. Let me explain. A critical component of the successful development of digital asset markets is an effective form of digital settlement asset—that is, digital cash. There are three forms of digital cash: first, there are central bank digital currencies, or CBDCs; secondly, there are tokenised commercial bank deposits; and thirdly, there are regulated stablecoins. If the UK is to establish itself as a global hub for digital assets, it is essential that all of those can be used interchangeably with traditional fiat money, or state-backed money. For that to happen, each form needs to be regulated in a way that recognises its particular nature and function. In the case of stablecoins, that will be achieved by regulating issuers under the new regulatory regime brought in by this legislation, which will be introduced and supervised by the Financial Conduct Authority. Also, in the case of sterling-denominated systemic stablecoins, issuers will be subject to dual regulation by the Financial Conduct Authority and the Bank of England. In its consultation paper on its proposed regulatory regime for sterling-denominated systemic stablecoins, published in November last year, the Bank of England confirmed that the use of regulated stablecoins could lead to faster, cheaper retail and wholesale payments, with greater functionality, both at home and across borders. It therefore wants to support such a role for stablecoins as part of a “multi-money” system alongside commercial bank money, including tokenised bank deposits, so in effect they would be part of the payments system itself. Similarly, we know that as the world progresses, capital markets, foreign exchange and asset management will increasingly be settled through digitalised blockchain technologies. For the UK to maintain its leading global position in those markets and others, it is vital that we take a leading role in adopting blockchain technologies in the payments system. Used in this way, stablecoins will bring immense benefits in terms of speed, lower costs and programmability. In other words, they are the key to growth both in our economy and in our financial services industry. However, importantly, without a proper treatment of stablecoins that recognises the way in which the assets actually function in practice, the UK risks not only missing out on positive growth benefits but, crucially, losing ground to other jurisdictions. That ground will be difficult to recover because market provision will already have been established elsewhere, where providers can be certain of their legislative position. We will be trying to catch up where other jurisdictions will have made progress and secured their lead. With the current wording of the SI, that important lead, which provides much economic benefit to the winner, will not be here in the UK.  The SI does not achieve what I hope we all agree we want, which is the UK to lead the way in cryptoassets, including stablecoins and the wider payments opportunity that distributive ledger technology—DLT—provides. However, the solution is simple, straightforward and easily achieved. Essentially, market participants should be able to use regulated stablecoins and tokenised commercial bank deposits in place of traditional fiat currency for the purposes I have mentioned—to make payments, settle capital markets and foreign exchange transactions, and for collateral and corporate treasury management. But crucially, they must do that without suddenly needing to apply for additional licences from the Financial Conduct Authority. If that is the effect of the SI, these new forms of money will not be used because of the unnecessary regulatory hurdle put in the way of market participants. As a result, the development of digital assets and blockchain technologies in the UK could simply grind to a halt. That will take all its growth potential with it, as well as the chance of the UK remaining the pre-eminent force in the financial world. Unfortunately, the likely need for those additional licences is precisely the effect of the wording in the draft regulations, despite the fact that it appears to run counter to the Government’s often stated, and highly laudable, policy intention. There appears to be a simple drafting error that could be easily rectified. There is currently no defined distinction for the majority of the new regulated activities between “qualifying stablecoins” specifically and “qualifying cryptoassets” generally, which has a number of cascading and adverse effects. The most adverse is that, under the current wording, stablecoins, including those regulated by the FCA and the Bank of England, are treated in the same way as unbacked cryptoassets such as bitcoin. Given that the risk profile of those assets is starkly different from that of a fiat-pegged stablecoin, which is, crucially, simply another form of regulated money, that makes no sense. Lumping unbacked assets together with stablecoins for regulatory purposes is rather like buying a car instead of a horse, but still tying the car to a post in case it runs off. Of course, both need securing, but in ways that recognise the fundamental difference between the two. From a practical perspective, applying the new “dealing” and “arranging” activities to regulated stablecoins has the effect of potentially requiring market participants who are seeking to use or facilitate the use of regulated stablecoins for the purposes I have mentioned to apply for new licences from the FCA, purely because they are using regulated stablecoins instead of traditional fiat money. In that world, market participants simply will not use them, and the principal benefit and advantage of stablecoins may never be realised. The Government appear to have attempted to address the issue in the case of payments, by copying across the legacy purpose-based sale of goods and services exemption from the traditional regulatory regime, which disapplies the new “dealing” and “arranging” activities for the use of stablecoins to buy or sell goods. That does not, however, achieve the aim of exempting all those who are crucial to the stablecoin payments process. Significantly, it is not clear that it covers those who exchange fiat money for stablecoins and stablecoins for fiat money. The payments process stands and falls by the ability of users to convert the fiat currency into stablecoins and back again, yet the exemption as currently drafted is likely to deter market participants from providing those essential services because it is not clear that it applies to them. It would be far clearer and simpler to have an exemption drafted in a way that is bespoke to stablecoins, rather than attempting to shoehorn them into a legacy definition that was not drafted with the stablecoin payment process in mind. Alternatively, an existing statutory definition could be used that accommodates the full range of payment activities, such as referring to the use of stablecoins and providing “payment services” in the way that the Payment Services Regulations 2017 do. Equally as important is the fact that there is, in the current draft, no similar purpose-based exemption for the use of stablecoins in capital markets or foreign exchange transactions, nor in asset or corporate treasury management. Again, those would be straightforward to introduce and should be entirely uncontroversial from a policy perspective. To allow that in the legislation would provide immense benefits to the City. A failure to make those simple and textually minor clarificatory changes would not only make it very difficult for the UK to become a global hub for digital assets and blockchain technologies, but would risk the UK losing its position as a leading international financial centre. This piece of legislation is intended to be ground-moving in terms of seizing an opportunity for our financial services industry, and it would be tragic if it were reduced to a minor tremor for the sake of simple loose drafting. Those concerns go into great detail, but we need to address them to ensure that we do not mess up a golden opportunity to get this right. One or two other concerns have been raised with me, but I think we can talk about them at a different time. The principle behind this is something that fundamentally we are 100% behind. It is a very good policy, and it is really important that we get this right, but issues have been raised by legal experts who are cleverer than me—but probably not cleverer than the Minister, who I think started at Slaughter and May. Obviously, we are very keen to work with the Government to get this right; I was hopeful that the Minister would agree to meet me and some experts in this area to look at the drafting of this legislation to see if that is possible. We will support it if she is happy to do that, and then we can move forward, get something together and hopefully get this right. It is important that we get this right, but I would be grateful to hear the Minister’s thoughts.

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  6. ParliamentLincoln Jopp

    Diego Garcia Military Base and British Indian Ocean Territory Bill

    Has my right hon. Friend noticed, like me, that all the military veterans in the Government and on the Labour Benches—with one notable exception—seem to have abandoned their post today? I have counted about nine veterans on our Benches. If more veterans had been on the Labour Benches, perhaps they could have told the Front Benchers about the forlorn hope. The forlorn hope were the people who were sent out either to defend the indefensible or to go on suicidal attack missions. They were in search of either promotion or pardons for sins of the past. Does she agree that the Front Benchers have been sent out here to defend the indefensible?

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  7. ParliamentKit Malthouse

    Mobile Phones and Social Media: Use by Children

    I realise that the Secretary of State has been sent out to manage a growing political problem—[Interruption]—honestly. She is speaking in stentorian terms to try to inspire some kind of confidence, but if colleagues look at the statement, they will see that there is nothing of substance in it at all. That is disappointing, given that in a private Member’s Bill only last year—I was a sponsor of the Bill brought in by the hon. Member for Whitehaven and Workington (Josh MacAlister), who is now on the Government Front Bench—promises were made that are not even delivered by this statement. In particular on schools—since I have to ask a question—could the Secretary of State acknowledge an inherent conflict? She says that the Government are clear that mobile phones have no place in schools, but she is going to update the guidance on how they should be used in schools. Could she at the very least confirm that that guidance is going to tighten their use in school, and that there is no possibility of any loosening of the current situation?

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  8. ParliamentKatie Lam

    Diego Garcia Military Base and British Indian Ocean Territory Bill

    This Government’s handover of the Chagos islands is nothing short of a disgrace. British taxpayers are being asked to stump up billions of pounds to pay for the privilege of giving away something we own—a strategically vital territory—to a close ally of the Chinese Communist party. And why? All because of an entirely advisory opinion issued by politicised judges in the International Court of Justice. People across the country are rightly asking why on earth any British Government would agree to a deal that diminishes our strategic capabilities and costs us billions in the process, particularly when the Government are already putting the squeeze on people’s finances in so many ways. The Government’s arguments for doing so were already thin, and they become even thinner when we consider the amendments before us today.

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  9. ParliamentKatie Lam

    Diego Garcia Military Base and British Indian Ocean Territory Bill

    The question that we are voting on today is the deal that the Government have agreed to. It is an appalling deal, and it should be opposed. The Government’s arguments for putting the deal forward become even thinner when we look at the amendments and how the Government have responded to them both here and in the other place. If, as the Government claim, the deal will make us safer, why not support Lords amendment 1, which would ensure that payments are made to the Mauritian Government only if our armed forces retain access to the Diego Garcia base? We have already heard that the Government will not support Lords amendments 2 and 3, but if, as the Government claim, the costs of the deal are proportionate, why not support Lords amendments 5 and 6, which would provide much-needed transparency about why taxpayers are being asked to stump up so much for the privilege of handing away territory? We hear no such support for those amendments, so the Chagos handover cannot really be about our security, the Chagossians or self-determination. So what is it about? The truth is that this so-called deal is motivated entirely by ideology. We have heard from the Government’s Attorney General that “almost every aspect” of the British empire was “deeply racist”, echoing the language used by the Mauritians at the International Court of Justice. Of course, when Britain has done something seriously wrong, we should be honest about that, but in the case of the Chagos islands, there was no original British sin. Mauritius never had sovereignty over the Chagos islands, and practically no Mauritians have ever lived there. The islands have been under British sovereignty since 1814, before which they were occupied by the French. Before that, they were uninhabited. This is no decolonisation; it is a surrender. Our history is complex. It contains cruelties, yes, but also enormous contributions to human health, wealth and flourishing around the world. The darkest moments in our history were hardly unique, yet many of the most virtuous moments in that history were truly exceptional. I believe that we should be proud of the contributions that our country has made to the world. However, the Government’s position on the amendments lays bare the truth: they simply do not agree. Instead, they believe that it is their responsibility to go around the world flagellating themselves and righting imagined wrongs on behalf of and at the expense of the British taxpayer. To their minds, this country is indelibly stained by the actions of those who came before us. The Chagos surrender is one such example, but it is not the only one, and I fear it will not be the last. To attempt to right the wrongs, real or imagined, of the distant past by squeezing the taxpayers of today is divisive madness. If the Government ever want the British people to believe that they are motivated by anything other than deep shame about our history, they would do well to accept the amendments before us today or—far better—to scrap this deal entirely. The British people are owed a Government who stand up for their interests today, not punish them for the imagined sins of our ancestors.

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  10. ParliamentJulia Lopez

    Mobile Phones and Social Media: Use by Children

    I thank the Secretary of State for advance notice of her statement. What does an ailing Prime Minister do to demonstrate firm and decisive leadership? He launches a consultation, with a variety of options. What does he do when the Conservative party, the House of Lords, trade unions and more than 60 of his own Labour MPs line up against him on a tricky issue? Rather than take a clear position on a social media ban for children and getting phones out of schools, as the Conservative leader has done, this Prime Minister finds an unkempt meadow with some lengthy grass in it, and he boots the tricky issue right in. The House does not just need to take my word for it. One senior Labour MP has said that this consultation will “take too long”. Another said, referring to a social media ban, “The immediate reaction is that this is just a way of kicking it into the long grass.” There is a straightforward question that Ministers must answer today: is the Government’s apparent change of heart on a social media ban for real? Is this consultation a way of elegantly managing yet another U-turn, or is it simply a device to get the Prime Minister through the parliamentary week, while the position remains unchanged? If it is progress, it can be celebrated, but let us not forget that until very recently, the Prime Minister said that he was personally opposed to a social media ban for children. In December, the Culture Secretary confirmed that she is against one. The Business Secretary is opposed. The Chief Secretary to the Prime Minister said on the media this very morning that the Government do not take a view. In fact, the only senior Labour figure we know who is clearly in favour of a ban is Andy Burnham. That is some leadership. What is the Secretary of State’s personal view, and what is her message to Labour MPs who would like to vote for a ban this week? Each of those rebel MPs will be asking themselves, “After the Prime Minister has Grand Old Duke of York-ed me up and down so many hills, can I really trust him to see this through?” That is especially so given that this same proposal was tabled previously, and Labour voted it down, just as it voted down our amendment to the Children’s Wellbeing and Schools Bill on a phone ban in schools. It is just like when they were told not to support their own colleague, the hon. Member for Whitehaven and Workington (Josh MacAlister), when he had a private Member’s Bill on this issue. Knowing where the Secretary of State personally stands on a ban—not where she stands on a consultation and not what she thinks about having a variety of options—may help ease the minds of Labour MPs. What of the timeline? Does a three-month consultation mean that legislation to introduce a social media ban will be ready in time for the King’s Speech? If not, and if MPs do not vote for a ban this week, they will not have another chance to do so for 18 months. The opportunity to change things is now. How many on the Government Benches will take that chance? The Government must have a great deal of the evidence that they need. The Secretary of State’s predecessor commissioned a University of Cambridge review of children’s wellbeing in relation to smartphone use, messaging and social media, which was due to report in December. Can the Secretary of State tell us what the report said? The urgency is obvious. Everyone, especially parents, can see what social media is doing to children. It is not just exposure to extreme or explicit content, although of course that matters. The Online Safety Act 2023, which we introduced, is already addressing illegal material and age-gating, and that work is ongoing. However, the harm goes wider. Social media has created an anxious generation hooked by products designed to be addictive, displacing real-world activity and undermining attention, emotional regulation and mental health. Schools and families deal daily with the consequences: cyber-bullying, social anxiety and fractured concentration. China’s version of TikTok, Douyin, limits children to an hour a day and promotes educational content, but western platforms do the opposite: engagement loops are optimised for emotional arousal. We welcome scrutiny of those algorithms and steps to stop children’s data being exploited, but there is a simpler option, which is to keep children off these platforms altogether while allowing adults the freedom that follows. Conservatives believe in parental responsibility: we believe in freedom for adults, but we also believe in protecting children. We believe in policing age, not policing speech. It is not to strip parents of their roles and responsibilities to recognise that the online world can be a discombobulating nightmare to supervise. It is not to be a modern-day Mary Whitehouse to worry deeply about children being exposed to images and topics that they are simply not equipped to deal with. This consultation also includes a rethink on phones in schools. I see that the Education Secretary is present; for months she told us that it was a gimmick and unnecessary, although most secondary school pupils say that phones are still used extensively. By when will phones be banned in schools, and how quickly will Ofsted enforce that? Will it be enforcing against guidance or against the law, because guidance is simply not enough? We must be up front in saying that the challenges of implementing any social media ban are real. We support the Government as they navigate those challenges because we want this to work, but can the Secretary of State make it clear that digital ID will not be a requirement to pass age verification on social media sites? The truth is that the internet grew as a pioneer society, with consequences that we are all reckoning with. It now needs to be retrofitted with very clear rules for children. They need to be protected. Other countries are taking the approach of a social media ban; will this Government in the UK do the same?

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  11. ParliamentJohn Lamont

    Mobile Phones and Social Media: Use by Children

    I have heard from literally hundreds of parents and teachers in the Scottish Borders who want social media to be banned for under-16s. We all know that these apps are addictive and are causing serious mental health challenges for our young people. I am now getting messages from parents who have heard what the Secretary of State has said and fear that she is simply kicking the issue into the long grass. Why will the Government not take action now?

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  12. ParliamentJohn Lamont

    Chinese Embassy

    The Government’s decision to approve China’s spy embassy is utterly wrong and puts national security at risk. Now that the embassy has been approved, if—or rather when—we get evidence that China is using the embassy for surveillance, torture or other inappropriate means, will the Government guarantee to close that embassy?

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  13. ParliamentJoe Robertson

    Railways Bill (Second sitting)

    Q I have a question about GBR’s licence. What can we glean from the provisions for that licence in the Railways Bill, without having seen a draft of the document? John Thomas: It is really difficult. As I said earlier, all we can glean is that, given the reduced powers that ORR will have, it will be a slimmed-down licence; ORR will not have the power that it currently has to enforce business performance. Until we see it, we cannot really comment on it. I am a bit surprised that we have not seen a draft of the licence yet. We have seen the access and use policy discussion document, but not a draft of the licence. It has been a long time in the making, so I am surprised that we have not seen it yet. I was told that we might not see it for some time. It is a key part of the overall framework, so until we see it, we cannot really comment on that framework. We are having to—we are having to comment on the Bill—but until we see the licence it is difficult to determine what our position will be.

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  14. ParliamentJoe Robertson

    Railways Bill (Second sitting)

    Q What role would industry expect to play in the production of that licence? John Thomas: As a minimum, we want to be consulted and to help to shape the licence. Our ability to do that will be affected by what will ultimately be in the Act, but we certainly want to be consulted and help to shape the licence.

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  15. ParliamentJoe Robertson

    Railways Bill (Second sitting)

    Q In previous questions today, I have asked about the integration of railways and other public transport, which the Government say they want to improve. When I have talked about my constituency and the example of connecting rail and ferries, given that our ferry companies are unregulated, privatised and controlled by private equity, the answer has come back that mayoral combined authorities will have powers to improve connectivity and timetabling issues. Notwithstanding the fact that the Isle of Wight does not have a mayoral combined authority yet, I want to ask you as mayors how that can work in practice. Does the Bill give you any extra powers, particularly on integrating modes of transport, where you have little or no regulatory powers at the moment? Andy Burnham: It is important to say that we are doing that without the Bill at the moment. Again, we thank the Department for coming with us on the Bee Network journey. We will bring the first two rail lines into that this year; and over the next three years, eight rail lines will come into the Bee Network system. It is complex, because some of the lines begin outside of our borders, such as in Glossop and Buxton in Derbyshire, or in Southport in the Liverpool city region, but because those lines are GM commuter lines, so are not going to Liverpool, it is right for them to be in the Bee Network. We have made that argument and the Government have supported us. We have already created an integrated ticketing system for tram and bus travel in Greater Manchester: you can tap in on both now, and there is a London-style cap. We want to add rail to that as soon as possible. When the first lines come into the Bee Network in December, people will be able to buy a paper ticket that covers tram, train and bus, but in time we want that to be integrated. There is absolutely no reason at all why you could not have that over train and ferry travel—I know that the Mayor of Liverpool wants Mersey Ferries to be a part of his integrated system. It is complicated, but it is absolutely possible. The Department has already shown a willingness to do it, and is putting the technology into the rail industry to support that.

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  16. ParliamentJoe Robertson

    Railways Bill (Second sitting)

    Q In the best case, as mayors, would you like to see more powers in the Bill? I get that you support the Bill, but in the best world, would you like to see more powers for mayors to integrate in it? Andy Burnham: I think there should be a presumption in favour of integration; you are absolutely right. Other countries, such as the Netherlands, have had that as their guiding star, but we went down a fragmentation route in public transport, and have suffered as a country as a result. Integration is the way to think. People are not just loyal to one mode; they want to use transport in as convenient a way as possible. The railways have not had an imperative to think that way for a long time, but you are absolutely right to think of integration as the watchword.

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  17. ParliamentJoe Robertson

    Railways Bill (First sitting)

    Q This question is directed at the chief executive of DFTO. You talk about the benefits of uniting track and train in terms of management and not having too many organisations. Transport for London obviously goes further, by working across buses, trains, cycle and tube. Is there anything in the Bill that improves the connectivity of rail with other forms of transport? I am thinking not just of my Isle of Wight constituency’s connectivity with privatised, unregulated ferry companies, but of probably every constituency with buses under different ownership models. Does anything in the Bill help to the improve connections between rail and other forms of public transport? Alex Hynes: The answer to that question is yes. GBR will be required to take into account places’ local transport plans, and there is a process by which partnerships exist, particularly with mayoral strategic authorities—that obviously does not include everywhere, but does include some places. There is also a right to request mechanism, by which people can request further devolution from GBR to their area. There is very much a place-based focus on devolution, because the whole philosophy of GBR is that, other things being equal, decisions made closer to where rail services are delivered will be better than those made hundreds of miles away. I also think that the combination of the creation of Great British Railways—a unified, publicly owned railway for the nation—with the Government’s intention to publish an integrated national transport strategy and the changes that are happening in the bus market will very much enable us to join up transport modes in places, so that we can deliver a better service to customers.

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  18. ParliamentJoe Robertson

    Railways Bill (First sitting)

    Q My question relates to the interconnectivity of rail services and other public transport. We have heard evidence today about the Bill supposedly offering potential for integrating rail-to-rail connections. Let me give an example: a rail ticket from London Waterloo through to Ryde Pier Head can be bought through National Rail—one ticket, one payment—but the train that leaves Waterloo at, say, 3.30 pm will get into Portsmouth Harbour five minutes after the ferry departs for Ryde Pier Head to complete that journey. This Bill gives no powers over, for example, Isle of Wight ferry companies, which are privatised and unregulated. Is there anything in the Bill that might help to deal with that? I use ferries as an example, but clearly buses and other travel providers are relevant elsewhere. Is there anything in the Bill that can deal with that sort of timetabling issue, so that it becomes a thing of the past? If not, do you see an opportunity to bring in some provisions in this Bill, and perhaps you could identify what that would look like? Ben Plowden: As we heard in the previous panel, the provisions in the Bill for GBR to engage with and to take account of the strategies and interests of communities in the regions and localities are very important, because understanding of anomalies is likely to be much greater closer to where they occur. Whether the Bill could require the list of people that GBR is required to engage with to be extended—for example, to ferry operators—to make sure that services, including the planning of timetabling and fares or ticketing, were more properly integrated, is an interesting question. I do not know how you would do that in the Bill, but certainly the involvement of mayoral combined authorities and local authorities in this process will help. It is an interesting question whether the Bill could make specific provision for the additional transport providers and operators that GBR would need to engage with to achieve that integration. Emma Vogelmann: At Transport for All, we very much look at every journey as multimodal—exactly what you were describing. We have found through our research that interchanges, specifically those between modes of transport, are one of the most significant barriers that disabled people experience on any journey. Where in the Bill this could be dealt with is a really interesting question, but as well as integration with other transport modes, such as ferries and so on, we also need to look at the immediate surroundings of stations, where I do think this Bill could have some influence. We know that disabled people may not use a particular station because, although it is step-free, there is no blue badge parking around the station, meaning that there is no way for them to get safely to it, or there no dropped kerb to allow them to use that station. If we are going to look at journeys as multimodal, we really need to see this as an opportunity, potentially in this Bill, to look at the areas surrounding railway stations themselves. Alex Robertson: I do not know what could be changed within the scope of the Bill to directly address your issue. It is partly a question of how effectively local transport is integrated, and then how that integrates with national transport. I did want to mention that we are passenger watchdog not just for rail, but for buses and the strategic road network, and we look at it through the lens that has already been talked about. Emma particularly highlighted that the perspective we would bring is to ensure that, when decisions are made and priorities are set, they are thought about in the round—how they affect people in their door-to-door journeys—and not narrowly in terms of rail.

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  19. ParliamentJoe Robertson

    Railways Bill (First sitting)

    Q Can I just check that you do not have any oversight of ferries? Alex Robertson: We do not. Michael Roberts: Your question prompts a slightly different line of thought from me. I apologise, because my focus is very much on travel in and around the capital, rather than the Isle of Wight, as important as it is. I have a concern about the extent to which the provisions in the Bill about fair and open access to GBR’s assets—the future of its track and signalling systems, for example—may compromise the degree to which effective integration can happen in the capital. I say that because TfL runs a significant number of services over GBR assets today. The busiest line in the country—the Elizabeth line—is a GBR asset that is run by an operator that is mandated by TfL. The London Overground runs over GBR assets, and so do parts of the London underground; if you are a user of the District line or the Bakerloo line, you are using GBR assets. The ability of TfL and the operators under its oversight to have fair and open access to those assets is extremely important to the travelling public, in whom I am particularly interested. I know that open access is a broader issue, rather than a London-specific one, but, for the Committee’s deliberations around that, I would flag that it is not immediately clear from a London perspective that the provisions are strong enough to give TfL, for example, the comfort that it will have the degree of access that it wants, to continue providing those services effectively.

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  20. ParliamentJoe Robertson

    Topical Questions

    T2. President Trump’s new version of the board of peace will apparently cost $1 billion to join, Trump will chair it for life and Putin will be invited to join and offer his views on peace making. I understand that the Foreign Secretary is still having conversations about it, but has she managed to identify a single good reason for the UK to join?

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  21. ParliamentJerome Mayhew

    Railways Bill (Second sitting)

    Q67 Thank you for attending to give oral evidence. Maggie Simpson, we heard from the chief executive of the Office of Rail and Road this morning that the appeals process is very tightly constrained. Is it worth the paper it is written on? Maggie Simpson: We are really concerned about the scope and definition of the appeals function as proposed in the Bill. We know that Great British Railways wishes rail freight to succeed. There are positive provisions for rail freight at the beginning of the Bill, but GBR will be a vertically integrated, incredibly powerful monopoly that, quite rightly, will be very focused on its own trains. This legislation will last for a long time, and the behaviours and actions of people today may not be mirrored in future Administrations or at future times. Our members—businesses across the country that rely on the railways for their supply chains—are really concerned about ensuring that, if things go wrong, they have an effective right of appeal. The provisions in the Bill set an incredibly high threshold—judicial review standards—for bringing an appeal. Even if it is met, the actions that can be taken are such a high bar that it is very unlikely that a decision would ever be overturned, and future Secretaries of State can by regulation, through the negative procedure, set out even more steps and fees. We are really concerned that that is weak. It is a backstop provision; we would only need to use it if things went wrong, but if it is not any use, it will deter people from investing.

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  22. ParliamentJerome Mayhew

    Railways Bill (Second sitting)

    Q Moving on to access decisions and charging, on your reading of the Bill, does the ORR have enough power to hold GBR to account? If your answer, as I suspect it might be, is that it does not, what changes need to be made to improve the Bill? Maggie Simpson: On capacity allocation in particular, as well as the points I have just made about the appeals function, we have a conflict between two clauses in the Bill. The capacity duty in clause 63 sets an incredibly powerful requirement in law for GBR to keep capacity for its own trains and any trains it wants to run in the future. We have sought assurance from the Department for Transport on how that duty and clause 60, on the infrastructure capacity plan, work together. The Department has told us that its intention is for the capacity duty to be subservient to the infrastructure capacity plan, where an assessment is made of the best use of the network, but that is not what the law says. We would like to see it clarified that the value-based assessment of what is the right use of capacity on the network is done first, and that GBR is then able to assure the capacity afterwards.

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  23. ParliamentJerome Mayhew

    Railways Bill (Second sitting)

    Q Thank you. Mr Thomas, in your view, under the Bill, will the railways be regulated in a fair and non-discriminatory manner? I am talking about the relationship between open access—the non-nationalised parts of the railway—and GBR. If not, why do you say that, and how would you suggest it is fixed? John Thomas: First, I will say that the policy intent is quite clear. One of the DFT’s supporting documents to the Bill is quite clear that one of the definitions of a duty on GBR is for it to be fair and non-discriminatory in its decision making. Network Rail’s recent access and use policy document also made it clear that GBR would have to be fair and non-discriminatory in its decision making. However, there is nothing on the face of the Bill to suggest that. It is really important that there is something on the face of the Bill to say that GBR needs to be fair, transparent and non-discriminatory in its decision making. I think that would be in the best interests of customers and communities, and it would give our members confidence to continue to invest, rather than just relying on the taxpayer to make investments. The reason I say no is that there is no such provision on the face of the Bill. Going back to Maggie’s point about appeals, I think it would really help the appeals process if there were provision for GBR to be non-discriminatory in making decisions; otherwise, what are appeals going to be based on? They will be based on GBR’s own policies, and if it can discriminate against other services, what is there to appeal against? In addition, the ORR will lose its ability to hear appeals on the basis of taking into account the benefits of competition for users. We think that is wrong. We think that an open access appeal could never be successful if that provision were taken away, so we advocate adding it back in. The ORR should have a duty to take account of the benefits of competition. Clearly, it has to take into account other matters, as it does currently, including the funds available to the Secretary of State, but if it does not have the ability to take account of the benefits of competition, how is an open access operator ever going to be successful in any appeal?

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  24. ParliamentJerome Mayhew

    Railways Bill (Second sitting)

    Q Mr Montgomery, will you say whether you agree with that position, as well as answering this final question? In areas of capacity and access, the Bill anticipates the Secretary of State being granted power to change capacity decisions and access agreements without notice. If that is the case, what impact will that have on the ability of open access operators to build a business case for investment in the future? What impact will it have on future investment? Steve Montgomery: I agree with everything John and Maggie said. The challenge we see as a private sector operator is how you get anybody to invest in the industry with the lack of clarity in the Bill. As John alluded to, there is reference by the DFT in the memorandum of understanding on the Bill, but nothing in the Bill itself. That makes it very difficult to go to a board and say, “Look, we want to invest in these things.” What certainty do you have for the future? An awful lot has been made of open access as we have gone through this process. It would take up 1% of overall capacity, but it is held out there, in the commentary, as one of the major plays in the Bill. We think that open access brings the opportunity for competition, which we seem to have lost with some of the wording in the Bill. How do we make sure that there are better services for customers? That is what we all want and what GBR is setting out to do, but how do we make sure that we all have a fair chance when bidding? We have talked about the access situation. GBR can decide not to give access, and the ORR has very limited powers to hear an appeal, so where is the confidence for the private sector investment that the industry continues to cry out for?

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  25. ParliamentJerome Mayhew

    Railways Bill (Second sitting)

    Q Thank you both for attending to give oral evidence. This section is about independent rail retailers. I am going to start with what the Competition and Markets Authority said about this. I am quoting it. It is saying that it is “important to give the right signals from the outset that TPRs will be competing on a level playing field with GBR—to encourage that competition and investment which will benefit passengers directly”. That is what the CMA says. Mr Davies, do you agree with the position that the CMA has taken? If you do, do you think the Bill as currently drafted gives a level playing field between GBR and independent retailers? If not, why not, and what would you do to fix it? John Davies: Yes, we agree with the view that the CMA has expressed on giving the right signals from the outset for how the reformed rail industry should work as far as retail is concerned. They also highlighted the risk of this structure giving rise to the actual or perceived risk that GBR will self-preference its own retail operation. There is relatively little about the structure of the reformed rail industry in the Bill, but I think the relevant point is that the creation of GBR will bring together online retailing in a single website and app. This creates a conflict of interest, because GBR will define and operate the future retail market, it will set its economic terms and it will also compete in it. It is not just the CMA that has recognised these challenges and risks. The Government’s own Railways Bill impact assessment registered this point in terms of the competitiveness of the ticket retailing market—it could be questioned by potential investors who might be concerned that GBR will use its unique position to take actions that put its retail competitors at a disadvantage. However, I should also note that we are encouraged by some of the words of Lord Peter Hendy, who said in a December interview with Simon Calder that there ought to be a level playing field. We look forward to understanding more about how that will be provided, because we have not seen any of the detail on that just yet.

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  26. ParliamentJerome Mayhew

    Railways Bill (Second sitting)

    Q Other witnesses have strongly argued for an express duty on the face of the Bill that GBR should be fair and non-discriminatory in its approach. Would you agree that that would be helpful in this circumstance as well? John Davies: I think it can only be helpful. There is a need to be certain that the retail part of GBR will compete in the market in the same way as everybody else, that it will do so on equality of terms, and that there will be equality of market access on things like fares, features, products, data services and system access, as well as economic parity, so that there is certainty that GBR’s online retail activity will not be loss-making or cross-subsidised, and that there will be transparency of costs and revenues, so that the ORR can hold it to account.

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  27. ParliamentJerome Mayhew

    Railways Bill (Second sitting)

    Q In other similar organisations, such as SNCF in France, the decision was taken to recognise the structural conflict of interest, and set up the retail arm of SNCF as a standalone organisation, presumably to prevent or reassure investors that there would be no cross-subsidising. First, do you think that would be a better solution in the United Kingdom? Secondly, if we got that through, could you explain or provide more details to the Committee on what impact it would have in real life? I have in mind, for example, LNER currently being able to offer a full refund with one click on its website, and that service and facility not being made available to independent retailers even under the current system. Can you elaborate on quite how important that is for the independent sector? I would then like Catriona Meehan to come in with her views, too. John Davies: When we talk about the need for the right kinds of protections for retailers, we are pointing at something that is not theoretical—these are risks that are with us today. You point at the example of delay repay, where independent retailers are prevented from supporting customers who have purchased their tickets through them by submitting their claims directly. It also occurs with things such as loyalty schemes, retailer inability to offer customers pay-as-you-go fares, and our ability to offer assisted travel. Independent retailers are not permitted to have access to a very significant amount of propositions around rail travel that are a very meaningful part of the market. Catriona Meehan: I completely echo all of John’s points. For us, it is a concern that there would not be proper separation, which could lead to a degree of self-preferencing. You mentioned SNCF and the separation there, which is an example that we think works well. It is not perfect, of course; there are things that could be improved, but a colleague on the previous panel from ALLRAIL mentioned that EU markets are moving the other way: they are liberalising rather than nationalising. It is interesting to look at why it has happened and why there is a need for it. FRAND principles were mentioned. We are also seeing that in other markets. Omio operates across 46 markets globally, so we have a lot of experience in other markets. Obviously, the UK is very important through our partnership with Uber trains, but we should also talk about the wider sector of independent rail retailers. Unless we have proper safeguards and assurances in place, we are not sure exactly how GBR will not self-preference. That is not exactly clear to us right now.

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  28. ParliamentJerome Mayhew

    Railways Bill (Second sitting)

    Q Thank you both for coming to give evidence. I will be fairly brief—I always say that, but never am. Mr Reeve, I will start with clause 8, which is on the potential powers for Ministers in Scotland to give directions to GBR. On the face of it, that all looks good: they have to consult the Secretary of State, and she or he has the power to overrule the Scottish Minister. Do you think that the Bill has the balance of responsibilities and powers right there? Bill Reeve: There has to be a balance, because we are trying to secure the ability of our Ministers to have a proper accountability mechanism and proper direction for implementation of our strategies and of our very substantial funding of the infrastructure. Equally, our network is not an island; clearly, if a direction in Scotland were to have a material impact on matters south of the border, which would not be the intention, that provision is there; I can understand that. There were constructive discussions between our Ministers and officials about how we strike that balance so, broadly, we are content with the arrangements, noting that an MOU is also required by the Bill to flesh out a little more how that will work in practice.

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  29. ParliamentJerome Mayhew

    Railways Bill (Second sitting)

    Q A recurring theme of this evidence today is the saga of the missing memorandum of understanding and/or draft licences. We have not seen 19 and counting documents that will form a crucial part of the governance of GBR in the future. Have you any idea about those? Have you seen a draft of the MOU? Do you know what is going to be in it? Bill Reeve: We are working with colleagues in DFT on the heads of terms for that and on what the principles will be. Since the Bill submission last year, that has clearly been a key priority for us. Again, we have had good constructive discussions, working through in detail, as we should. Thus far, we are pleased with those discussions.

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  30. ParliamentJerome Mayhew

    Railways Bill (Second sitting)

    Q Okay, but nothing yet. Let us move on to clause 10, which gives the Scottish Ministers power of guidance over GBR. Some people have expressed concern that there could be so much political control over future GBR that it will be hard to work out whether the guiding mind is Ministers or GBR. What is your take on that? Bill Reeve: I do not imagine that the guidance will be used then. Ordinarily, I would imagine that we would start with the use of our strategies, our statement of objectives and our normal means of engagement. It is important to remember that, whereas currently we spend £1 billion a year on Network Rail in Scotland, and it is for the ORR to enforce its delivery obligations under the delivery plan to the current funding arrangement, that role is being removed from the ORR. What you see reflected in the Bill is something to address what would otherwise be a complete accountability gap. We would welcome the fact that we will have stronger accountability mechanisms under these provisions than we have had hitherto, given the very substantial amount of funding that we fund the railway infrastructure in Scotland with.

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  31. ParliamentJerome Mayhew

    Railways Bill (Second sitting)

    Q It is interesting that you indicate that the guidance is a last resort, not a first resort. It does not say that on the face of the Bill. Do you think it should? Bill Reeve: I think that would be a matter of convention and expectation. It is not the sort of thing you would rush to do when there are other ordinary means of engagement to be used first.

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  32. ParliamentJerome Mayhew

    Railways Bill (Second sitting)

    Q I turn to Mr McDonald. It is very different in Wales. The vast majority of the Welsh railway crosses the border with England, as opposed to Scotland, where there is more of a discrete railway—if I can put it like that. I think only the core valley railway is wholly within the gift of Welsh Ministers. Bearing that in mind, and that there will then have to be consultation with the Secretary of State on the vast majority of railways that affect Wales, do you think the Bill has the right line between consultation and decision making for Welsh Ministers, since it affects so much of their railway? Peter McDonald: Yes I do, in terms of the legislation. However, I do not think we can come to a full judgment on this. This may also pre-judge your second question, because we do not have the full memorandum of understanding in front of us. It is only when we see that full package that we can make a judgment about whether the degree of consultation and partnership is sufficient for Wales.

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  33. ParliamentJerome Mayhew

    Railways Bill (Second sitting)

    Q Would you accept that the Committee is flying blind substantially on a lot of this, because we do not have the MOUs or a lot of the information that is core to the successful running and governance of GBR at the moment? Peter McDonald: In the case of Wales, the heads of terms for the MOU were published in December. We are now working closely with Department for Transport officials on the detail. We are optimistic that we can jointly publish a full draft in early March. It is important for us to do that, because, similar to the Scottish Government, we have a pre-election period ahead of the devolved elections, and we would not want that to lose momentum in this important process.

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  34. ParliamentJerome Mayhew

    Railways Bill (Second sitting)

    Q Thank you, all three of you, for agreeing to give oral evidence today. I will start with Mr Brown, who represents Angel Trains: first of all, can you say a little bit about Angel Trains? Malcolm Brown: Yes, by all means. Angel Trains is a ROSCO—a rolling stock operating company. We own circa 4,000 passenger vehicles in the UK, and we provide the bridge between private sector finance and the actual rail industry. In the last 10 years, we have invested about £1.9 billion in new rolling stock in the UK, and we invest about £80 million a year in refurbishing and maintaining trains across the network.

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  35. ParliamentJerome Mayhew

    Railways Bill (Second sitting)

    Q That is an awful lot of money, and that comes down to the meat of it: this Bill changes the relationship between GBR and the supply chain—between GBR and ROSCOs, in your case. Does it provide your company, and companies like yours, with the long-term view needed for the supply chain and, by extension, investors? If not, what is needed to fix the gaps? Malcolm Brown: As has been covered in other panel sessions, the Bill as it stands does not provide a long-term view. It relies on the building blocks that it refers to—we talked about this in other panel sessions—where you have a long-term rail strategy and there is also a promise of a long-term rolling stock and infrastructure strategy. It is those documents that we would look to to provide a long-term view on what is coming up in the industry. Our assets last circa 30 to 35 years, as does the infrastructure, and it is that long-term view that we require, not necessarily to give us certainty, but to give us a clear look-through that allows us to decide whether to invest and the level of investment we will make. In answer to your direct question, we will be looking to the railway strategy, which we presume will come first, and then to the long-term rolling stock and infrastructure strategy.

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  36. ParliamentJerome Mayhew

    Railways Bill (Second sitting)

    Q There is reference, obviously, to a long-term strategy for rail in the Bill, but how long that is is not defined. Let us give the Minister a helping hand: for the ROSCOs and for the supply chain, what do you mean by “long-term”? What is helpful, and what is just too far in the future? Malcolm Brown: As a general rule, a 10-year horizon is something that we can work with. With the nature of infrastructure—not just rail, actually, but other infrastructures too—for this type of asset, that, while it is not whole life, gives a clear look forward. When you extend that, clearly the level of accuracy, if not certainty, gets less. That is perfectly okay; we are used to dealing with that. That is how infrastructure actually works. We do not need to have 100% knowledge of something that is going to happen in 35 or 40 years, but what you want to have for look-through is, “Okay, we know what is going to happen in 10 years, and therefore, on a probability basis, this is what we will assume to do in 30, 35 or 40 years.”

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  37. ParliamentJerome Mayhew

    Railways Bill (Second sitting)

    Q So if you have a degree of certainty for the next 10 years and a forward look for, say, the next five after that—the Minister is right here, so shall we say 15 years for a long-term strategy? Is that what you are suggesting? Malcolm Brown: No, I am not. I am suggesting that the strategy should give various date points—10 years, 15 years, 30 years. I do not think we should exclude it saying, “Here is a vision for what we wish our rail industry to look like in 30 years,” while accepting that that will actually change. It has to change; it has to morph and adapt to the market.

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  38. ParliamentJerome Mayhew

    Railways Bill (Second sitting)

    Q What is missing from the Bill, from your perspective? Malcolm Brown: I think the references to the building blocks of the long-term rail strategy and the rolling stock and infrastructure strategy are key components that will actually help give greater colour to the Bill. At this point, a number of us are looking at this and trusting in the fact that they will come, and will come in a timely manner, and that that will allow us to get on and invest. This is not just investing for investing’s sake; this is taking Rob’s plant in Goole and actually pouring work in there that will employ people in the local area. It is that type of thing that will break the log jam that we have just now, and let us get on with things.

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  39. ParliamentJerome Mayhew

    Railways Bill (Second sitting)

    Q Mr Morris, you have just been referred to. At the moment, you have a control period of five years where the funding is locked down and there is a degree of forward certainty. Under the Bill, that certainty will be removed. It is not giving you more certainty for the future; it is giving you less. How important to the supply chain is certainty about the control period? Rob Morris: Certainty is very important. We have invested something like £340 million, and we are currently investing in a new Goole facility for rail and train manufacture and a train command and control systems R&D and manufacturing facility at Chippenham. To continue with investment not just in facilities, but in skills and rolling stock for the future, we need certainty about the financing or funding over the control periods. It is not just about renewals, which are currently included, and which are there to stop the infrastructure from falling over; it must also be about enhancements and rolling stock and the maintenance of that. From our perspective, we would echo what Malcolm said about the 30-year long-term strategy. For all those elements I have talked about, we must recognise that strategies have to be reviewed. I would suggest that that be done every five years for all of those and that funding is made available on a five-year basis, so that the supply chain has absolute clarity on where it can invest and how it can support GBR. GBR spend will be 50%-plus, we expect, within the supply chain, so what it does not want is for the supply chain and the investors to fall over.

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  40. ParliamentJerome Mayhew

    Railways Bill (Second sitting)

    Q You make an important point that enhancements should be included in this, not just maintenance. Coming back to the question, the Bill introduces for the first time an ability for the Secretary of State to change the funding settlement within a five-year period and without notice. You would agree that that is a backward step in certainty for the supply chain? Rob Morris: Absolutely. Although we are based in the UK, we are a global company. If there is uncertainty here in the UK, we will cut off investments because we are in competition with a global market.

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