Part of the debate – in the Senedd at 3:30 pm on 5 June 2018.
Can I thank the Member for his contribution, for his questions and for warmly welcoming the announcement, and can I thank him for on previous occasions also welcoming the process by which we have procured the Wales and borders franchise operator, that being competitive dialogue?
I think it's an interesting example of how, in carrying out an innovative and creative approach, we have been able to showcase to the rest of the UK how perhaps procurement of rail contracts should be carried out in the future. Up until now, the way that franchises have been let has been such that Governments have sent out a big transit van of specifications and then bidders have come back with a price, and that means of going about procuring a contractor has led to bidders being incentivised to just give the lowest cost return and, in doing so, often to provide an unsustainable provision. As a consequence, we've seen the failure of franchise arrangements across the UK. What we've done is turned that on its head and through a process of having a funding envelope and entering into competitive dialogue we've said to bidders: 'This is the envelope; this is the maximum sum of money available; what can you do for it?' And then we've stretched and stretched in order to ensure that we get the best possible arrangements, and I think that's why we've been able to extract such a positive deal for people the length and breadth of Wales.
The Member is absolutely right about rolling stock needing to improve. More than 140 new trains will be provided for the network and, of course, more than half of those will be built in Wales. Every single one of the 247 stations will receive an upgrade. It's quite a fact, actually, that, in the current franchise arrangement over the last 15 years, we believe that approximately £600,000 has been spent on stations. In contrast, the figure will be £194 million in the next franchise—quite a contrast, and I think that again demonstrates why the previous franchise arrangement was unfit, whereas the current arrangements that we've agreed are superb for passengers and communities alike.
I'm pleased to be able to say to the Member that the South Wales Argus's campaign for Ebbw Vale to Newport services has been successful, and Members have achieved what they have wished to do over many years because within the franchise arrangement there will be a train per hour operating between Ebbw Vale and Newport. It's something that many people during the consultation exercise said they needed, they wanted, and I'm pleased that we've been able to provide it.