Railways Bill

What is in the Railways Bill? RMT parliamentary group convenor John MacDonnell MP looks at the contents of the Railways Bill and explains the union’s campaigning strategy for amendments to be made Abolition of SRA: The Bill confirms the abolition of the SRA, with its strategic and financial responsibilities passing to the Department for Transport, as well as powers to award franchises. The Secretary of State will assume responsibility for capacity and performance. The SRA’s role in monitoring the performance of the railway and setting timetables will be taken over by Network Rail. Indemnification of TOCs: The SRA currently has the power to waive penalty payments incurred during industrial disputes if it believes that the TOC has "demonstrated it has done all it reasonably can to resolve the dispute". RMT has requested that the government use the introduction of the Railways Bill to ensure that these powers are removed. Bustitution: Whilst the government has stated that it has no plans for discontinuing passenger services or closing parts of the network, the Bill increases the power to cut railway services. The Bill makes it easier for bus quality contracts to be introduced if this is part of a wider strategy which includes reductions in rail services. Passenger Transport Authorities (PTAs) will be given powers to make a bus quality contract scheme if they are satisfied that the scheme is "securing the transport needs of the potential users of a relevant railway service that has been or is to be reduced or discon- tinued are met". This threat of "bustitution" is compounded by other proposals in the Bill which will make it easier for funding authorities (ie PTAs, Welsh Assembly, Scottish Executive and TfL) to close railway lines. The Bill also weakens safeguards against line closures. Whereas previously the criterion was whether closure would increase passenger hardship, the new guidelines will also cover economical, financial, environmental and social factors. In addition, the closure assessment will no longer be made by the regional rail passenger committees, which are to be abolished, but by the funding authority. No promotion of rail: Fears that the Bill could lead to a contraction in the railways are heightened by the fact that that there will no longer be a responsibility to promote the railways. The SRA is currently required to “promote the use of the rail network”, “secure the development of the rail network” and “to contribute to the development of an integrated system of 8 passengers and transport.” As the Bill stands this responsibility will be removed and not passed to the government. In addition, there will be changes to the powers of the Office of the Rail Regulator (ORR). At present the government is obliged to pay what the ORR decides is necessary to maintain the network. Now if the government feels that the regulator has made excessive requests it will be able to revise the decision, and the Treasury decides to reduce subsidies services or lines may have to close. These provisions also need to be set alongside government proposals for a "Community Rail Development Strategy" in which the government assessing whether community rail lines can be introduced on 56 routes across England and Wales (see page 11). Rail safety: The Bill transfers all aspects of health and safety regulation from the Health and Safety Commission to the ORR, including London Underground, other metro systems and light rail. This will subordinate railway safety to economic regulation in direct contradiction to the recommen- dations of Lord Cullen following the Ladbroke Grove rail crash. The transfer of responsibility will take place after a memorandum of understanding has been agreed between the Health and Safety Commission and the ORR to establish how new responsibilities will be administered. Reduced PTE powers: The Bill removes the powers of Passenger Transport Executives to specify rail services that are needed to meet public transport needs within their areas and to specify quality and fares in franchise agreements. It also removes the requirement of PTEs to be future signatories to rail franchise agreements and their right to change services or fare requirements and monitor service quality. These powers may now only be exercised if they are agreed by the Secretary of State, although the Secretary of State will be obliged to consult with the relevant PTE before issuing an invitation to tender or entering into a franchise agreement. Scotland: The Bill increases the powers of the Scottish Executive over the railways in Scotland in order to specify, let, manage and finance the contract for Scottish passenger services. The Executive can specify and fund rail infrastructure in Scotland and be consulted on cross border passenger services. Wales: In conjunction with the Transport (Wales) Bill which has already been passed, the Railways Bill will increase the powers of the Welsh Assembly over local railway services. Specifically the Bill gives the Assembly the power to be co-signatories to the Wales and Border franchise as well as determining the priorities for local and regional services and setting fares. The budget for the Wales and Border franchise will also be transferred to the Assembly. London: The Bill clarifies and increases the powers of the London Mayor over rail services in London as a consequence of the abolition of the SRA. The Secretary of State will be required to consult TfL on proposals to let franchises that directly impact on Greater London. Subject to the Secretary of State’s approval, the Mayor can enter into direct agreements with agreed franchises. The extent of these agreements will be set out in future non-legislative arrangements but will be designed to extend the Mayor’s powers over London Rail. Possible powers will include rationalising fare structures and ticketing technology, buying additional rail services funded by TfL, specify services directly and taking revenue risk from Train Operating Companies. In addition, the TfL Board will be expanded as the mayor will be required to appoint two members to represent those living outside Greater London but covered by passenger services within the TfL area. Rail Passenger Council: The Rail Passenger Council and its Regional bodies will be abolished and a new, unspecified body will be established. RMT response: There are a number of areas in which RMT will be campaigning, alongside the TUC and other unions, for amendments to the Bill before it gets Royal Assent next March: G Establish a commitment to re-nationali- sation to create an integrated, publicly owned and publicly accountable railway. G Maintain public ownership of South Eastern Trains G Give the Sectary of State powers to take franchises back into public ownership G Remove incentives for PTEs to replace rail services with buses and remove provisions that would make it easier for funding authorities to close railway lines altogether G Ensure that the Strategic Rail Authority’s statutory duty to promote the railways and implement a rail-development and growth plan is maintained when the SRA’s functions are transferred to the Transport Department G Require all rail industry employers to provide mutually recognised conces- sionary travel facilities for all rail workers, ending the two-tier workforce created when the industry was privatised G Remove the power to indemnify or waive penalty payments from train- operating companies involved in industrial disputes G Halt the transfer of the HSE’s rail-safety functions to the Office of Rail Regulation G Establish an industry-wide forum, including unions, passenger groups, employers, government and local authorities G Protect the democratic powers and input of the metropolitan PTEs TUC support: TUC Deputy General Secretary Frances O’Grady backed the measures and the campaign to renationalise of Britain’s rail network. “We believe that the changes we are seeking would make all the government’s aims easier to achieve and bring us closer to ending the fragmented nightmare of privatisation,” she says. RMT will be telling the government that tinkering with the fragmented network is not enough and it is time the government implemented Labour Party conference policy to renationalise rail. RMT slams plans to break up Network Rail RMT slammed plans by transport secretary Alistair Darling to take signalling work out of the hands of Network Rail and passing control to Mersey Rail. RMT general secretary Bob Crow described a pilot scheme to hive off 67 signalling workers to Mersey Rail as the "thin end of the wedge" to handing responsibility for signalling operations and maintenance back to the private sector. He warned that such private sector vertical integration would lead to horizontal fragmen- tation. “RMT supports national vertical integration and if the government is seriously converted to the benefits of vertical integration they should apply this to the whole of the network by allowing Network Rail to assume control of rail operations. “We cannot rule out industrial action to prevent our members’ terms and conditions being undermined by this transfer,” he said. Bob said that taking signaling operations and rail maintenance under the control of Network Rail had been one of the industry’s recent success stories and transferring responsibility to private operators could reverse these achievements. “This unnecessary and damaging fragmen- tation is exactly what the private operators have been lobbying for. “The move represents a serious threat to national unified railway maintenance and operations and could represent the first stage splitting up national railway maintenance and operations with private train operators taking control of railway infrastructure,” he said. 9