9. 8. Debate on the Economy, Infrastructure and Skills Committee Report: ‘On the right track? The Rail Franchise and South Wales Metro’

Part of the debate – in the Senedd at 3:22 pm on 27 September 2017.

Alert me about debates like this

Photo of Ken Skates Ken Skates Labour 3:22, 27 September 2017

I do, but I would insist again that it was because of the risks that those larger banks, particularly on the other side of the Atlantic, were taking—that led to the financial crash, and we should learn from that. I doubt that many Members in this Chamber would support any approach that leads to an operator maximising profit at the expense of reinvesting that money in the Welsh network. So, our proposals instead will incentivise service enhancements, but there will also be a cap on profits so that we can reinvest excess profits back into public transport. I think that is exactly the right approach to take.

Jeremy Miles and Hefin David both responded accurately and fully and properly to the contribution of Dai Lloyd.

I'd like to now just touch on some good progress that we have made against the committee’s priorities. We’ve recently procured 20 additional train units. The lack of capacity on the network is one of the most frequently raised issues in my department. I’d like to pay tribute to a number of Members in this Chamber who regularly raise it on social media and with me directly, including Hefin David, who is a great champion for his constituents, regularly posting videos about the frustrations that his constituents have on the rail network. The 20 units will be commissioned for use from June 2018, providing additional resilience to the existing fleet of trains, but they will also open up the opportunity for us to enhance the existing fleet for persons of reduced mobility. These additional trains will provide the capacity that is required for us to make all trains accessible for persons of reduced mobility. I have committed to removing the old Pacer trains as a priority replacement procedure.

By undertaking wide-ranging engagement, by gathering public views on the policy priorities for the next franchise, we have been able to incorporate views expressed by the public transport users as a fundamental part of our thinking throughout the procurement process, and we fully intend to deliver on the public’s expectations. I am pleased to announce that, following the process of competitive dialogue, we will be issuing final tenders tomorrow, with the intent to find a preferred partner early next year.

A key issue referenced within the committee’s report is funding for the core Valleys lines. I have had a positive dialogue with the Secretary of State for Transport, and my officials are currently working with counterparts in the UK Government to agree the final details needed. Furthermore, I agree with the committee that we must secure a robust agreement regarding the transfer of ownership of Valleys lines. Initial headline terms have been developed between the Welsh Government, supported by Transport for Wales, and Network Rail. An agreement has been made to enable further and more detailed development work to be undertaken alongside the procurement process. I’d just like to—[Interruption.] Yes, of course.