Leading rail operator FirstGroup has submitted its response to the consultation on planned railway reforms, ahead of the forthcoming Railways Bill which will enable the establishment of Great British Railways (GBR).
FirstGroup has welcomed reforms to put passengers at the heart of the Government’s plans for the rail sector and, overall, the Group is supportive of the creation of GBR to deliver a reformed railway following the Government’s initial legislation on public ownership last year.
However, in its submission the operator has warned about the risk of adverse monopolistic impacts a singular GBR operator may create. To put the interests of passengers first, the new arrangements must retain the ability to procure from the private sector and encourage private sector investment. This will encourage competition with publicly owned operators, as is the case in European markets such as France and Spain and help to secure the best services for passengers.
To champion passenger interests and ensure appropriate oversight of GBR’s activities, FirstGroup has said an independent regulator must be empowered to adjudicate fairly and impartially. This will help ensure popular open access operators, which have been a hugely successful aspect of the rail industry over the past 25 years, can continue to grow – delivering increased passenger choice, cheaper fares and increased connectivity across the UK.
Lumo and Hull Trains, alongside other open access operators, have successfully connected previously under-served places and provided additional capacity which helps drive more people towards rail and away from less sustainable forms of transport.
To support delivery of the legislation later this year, FirstGroup has offered practical and deliverable policy recommendations which will benefit customers and communities. They would also allow the Group to further develop its contribution to the growth of the national and regional economy through its successful open access rail operators and affiliate businesses.
Commenting, First Rail managing director Steve Montgomery said: “Enhancing rail connections is critical to boosting economic growth in the UK. We have long called for reform of the railway sector, and we are keen to see new arrangements introduced which consider the customer and commercial elements of rail, alongside measures on infrastructure.
“Delivered effectively, reform will ensure the industry can grow passenger numbers, generate greater revenues and develop the value of rail in a customer focused, dynamic and efficient environment. To do so, it is essential the Government considers the need for appropriate protections and controls through independent regulation of GBR, private sector investment and open access operations.
“This will ensure open access operators can deliver customer benefits and drive modal shift, while playing a role in ensuring the wider railway offers best value for the taxpayer.
“Across Europe, we see private sector operators co-existing with state-owned services. Such competition is healthy, necessary and in the interests of passengers. It is proven to grow the overall rail market, and it is vital the GBR model allows for the same in the UK.”
FirstGroup’s submission can be found HERE, and the key recommendations are outlined below.
Independent regulation should ensure customer interests are defended:
- FirstGroup supports a stronger passenger watchdog with regulatory powers to ensure passenger interests are prioritised. The Group is concerned the passenger is currently left undefended in the proposed industry structure and advocates for a statutory requirement for GBR to drive passenger growth and for the watchdog to have the power to intervene when standards are not met.
- In addition, FirstGroup supports the continuation of a common Rail Ombudsman service across all operators to protect customer interests, and we would expect GBR to be subject to the Rail Ombudsman service on the same terms as other operators, as we consider the independence of the ombudsman to be highly valuable to passengers.
Provision for successful open access services must be protected:
- FirstGroup would like to stress the importance of strong, independent regulation for GBR, with fair, transparent and open decision-making processes, for both freight and open access operators. This will ensure open access operators can continue to deliver customer benefits, drive modal shift, and derive best value for the taxpayer from rail infrastructure.
- The Group believes the ORR should retain its role in setting access policy and regulating charging regimes to ensure fair and non-discriminatory access for non-GBR operators. There must be effective rights of appeal and effective remedies, to ensure fair, timely and objective decision taking.
Private sector investment which secures the best service for customers should be enabled:
- FirstGroup highlights the financial and economic risks of the proposed industry structure, emphasising the need for certainty to support investment and innovation. The Group supports a five-year funding settlement for GBR but calls for a longer-term strategy to support investment. The business is also keen to see collaboration and co-operation to implement improvements now, rather than waiting for GBR to be set up, which will inevitably take a number of years.
Devolution is key to ensure strong local provision:
- In general, FirstGroup supports devolution, bringing transport provision closer to the needs of local communities and ensuring accountability for key local transport decisions. GBR reforms should ensure private operators can continue to support devolved bodies with delivery of rail services.
Click here to download FirstGroup’s submission to the Department for Transport’s consultation.