5. Statement by the Minister for Economy, Transport and North Wales: Future of Rail — Details of the new arrangements

Part of the debate – in the Senedd at 5:24 pm on 3 November 2020.

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Photo of Ken Skates Ken Skates Labour 5:24, 3 November 2020

I'd like to thank Rhianon Passmore for her comments and for her support for what we have done. And yes, I'd agree with James Price, CEO of TfW, and what he stated; I think he stated the obvious, he's absolutely right. In terms of the Ebbw Vale to Newport service, I've already said to Alun Davies that work is proceeding as planned, with the caveat that we are obviously reliant on Network Rail to deliver against our published time frame. I would agree with everything that Rhianon Passmore said about our decision to take swift action and bring services into public ownership, but I would also say that the decision that we took in no way reflects on the operator's performance. In fact, performance was improving very significantly under the operator. And that is one of the reasons why I was determined to ensure that we retained their expertise and their experience. They are one of the world's greatest operators, and we are pleased to be able to have secured their partnership for years to come through the joint venture.

COVID has, obviously, broken the model in the UK. No private business would have been able to shoulder the enormous costs associated with operating during the pandemic. I must also warn Members that public ownership offers opportunities, but it doesn't provide the answer that would enable us to overcome coronavirus without difficult questions about future service provision having to be answered. We will endure a lengthy period of financial challenge in the public sector, no matter who is operating rail services anywhere in the UK. The costs are going to be increasing as a consequence of the pandemic. That will lead to difficult decisions, obviously, having to be made. But the fact of the matter is that with public ownership we are in fuller control of what we do, and that is something that I think, generally, Members across the Chamber would endorse.