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Rail franchise nationalisation a necessary response to a “broken delivery model”

Owen Donovan by Owen Donovan
November 4, 2020
in Fifth Senedd Finance, Economy & Transport
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(Title Image: © Copyright Jaggery and licensed for reuse under Creative Commons Licence BY-SA-2.0)

  • First Senedd reaction to the recent announcement that the Wales & Borders rail franchise will be nationalised from February 2021.
  • Criticism of the decision not to tell the Senedd first; Minister says there wasn’t enough time.
  • Minister warns that “more difficult decisions” may need to be made.

New delivery model “will protect rail services”

Economy & Transport Minister, Ken Skates (Lab, Clwyd South), defended the recent announcement that the Wales & Borders rail franchise would be nationalised as a necessary step to protect rail services. Passenger revenue provided over half of the rail operators income before the Covid-19 pandemic and that forced the Welsh Government’s hand.

While some elements were still under negotiation, he ran through what this new “working relationship” means:

The Minister continued to make the case for a Barnett Formula consequential from England’s High Speed 2 project in the same manner as Scotland.

While there were complaints from across the chamber that a statement wasn’t issued to the Senedd, the Minister said the timing of the agreement being finalised meant it was too late to table a statement and it also gave TfW Rail enough time to brief its 2,500-strong workforce.

“Difficult decisions will need to be made”

Shadow Economy Minister, Russell George MS (Con, Montgomery), believes people don’t necessarily care about “whose name is on the trains”, but the quality of service. He wasn’t optimistic that public ownership would necessarily improve things and presented a far greater risk than nationalising Cardiff Airport.

Plaid Cymru supported the decision. Helen Mary Jones MS (Plaid, Mid & West Wales) asked whether the new arrangement would open the door for rail to better respond to public priorities. She listed improved station facilities and joined-up timetabling amongst others.

The Minister raised the possibility that bus timetables could be enhanced once new legislation is introduced (this term’s Bus Bill was withdrawn due to the pandemic).

In response to Labour backbenchers, he said the government remains committed to taking forward rail projects such as enhancement of the Ebbw Valley (including passenger services to and from Newport) and Maesteg lines, as well as the South Wales Metro.

He went on to say that Covid-19 had broken the delivery model for rail services in the UK and no private business would’ve been able to absorb the costs of running services during the pandemic. He warned of “difficult decisions….having to be made”, including a possible reduction in services until passenger numbers begin to recover.

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Senedd Home by Owen Donovan is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

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