The current railway is effectively a nationalised industry. Its main assets the tracks, stations and signalling system are all in public ownership. The train companies are heavily regulated and have to conform to timetables agreed by government and constrained by what track capacity the nationalised business cares to make available. One of the results of public ownership is a restrictive and unhelpful approach to managing railway property.

It is true that at last the industry has got round to transforming some of the large London stations with retail and service improvements, and to one or two of the prize City properties outside London like Birmingham New Street. Meanwhile much of the rest of the network fails to exploit the obvious opportunities to redevelop station properties to create proper transport interchanges with bus, taxi and private vehicles, and fails to devclop the retail and service opportunities. Worse than the failure to initiate, the railway often blocks, delays or prices out suggestions from others to improve or develop general railway  property anywhere on the extensive estate.

As a train traveller I often look out on a bleak landscape of disused sidings, weed strewn derelict property, surplus land, under developed and old stations. The railway itself is one of the main barriers to a better road system requiring  expensive bridges to get roads across. Too many  level crossings present a safety issue to the railway as well as creating big delays for road traffic. Better investment schemes could include more bridges to get traffic safely over the lines.  In Wokingham the railway blocked my proposals for a new station using private money funded by some private development of retail and café facilities on public land, only for them eventually to give into pressure  to build a new station, using public money  without much increase in service.

Harnessing more private capital and re uniting track and trains would assist in creating a more positive atmosphere for station and property development. Kings Cross and St Pancras show what can be done on a grand scale when private sector services are allowed to flourish alongside the train service. Much more could  be done elsewhere.

The railway review also needs to consider how ticketing and ticket pricing could be improved. The multiplicity of tickets from conventional paper through printed out pieces of paper to electronic tickets on smart phones can cause delays and complications getting through automatic ticket barriers. The range of prices turns buying a ticket into a kind of lottery, where you could pay anything from a low price bargain to a very high price penalty style fare depending on time of day, route and timing of your purchase of the ticket. There is little flexibility so if on the day you wish to travel by a different train your surcharge for switching can be disproportionate even where you are switching to a relatively empty alternative train. The heavily discounted bargain tickets bought in advance for non peak travel cannot represent a good deal for the train operator, whilst the penal high fares for a peak period journey bought the same day is certainly not value for the passenger. The fare structure is an assault course for the unwary, with great complexity leading to difficulties or discouraging potential passengers.

Dear Stephen

I understand the government is considering putting the Withdrawal Agreement Bill to  the Commons for a  vote on the principles of the Bill following   a  Second Reading debate. Indeed we were all told to be ready to answer a 3 line whip for this purpose on Thursday, only for this to be postponed.

I understand this is a long and complex piece of constitutional legislation which will require careful study by all those asked to improve or approve it. I would therefore urge you again to publish this Bill as soon as possible so MPs  can have an intelligent debate about what it is seeking to do and how it might try to do that. Why the delay in  releasing a piece of legislation for scrutiny which the government claims is so important. It must have been drafted for some time, as the draft Agreement it seeks to implement has been settled for many weeks and is not subject to renegotiation according to both the government and the EU.

The legislation presumably seeks to repeal much of the EU Withdrawal Act and will reintroduce the European Communities Act 1972 into the UK constitution to restore all EU powers for a flexible and long  transitional period and maybe beyond that. It needs to make provision for the substantial sums of money the draft Agreement commits the UK to pay and  for the imposition of new EU law upon the UK.  It needs to confirm  the powers of the Joint Committee and European Court of Justice in making important decisions about our future government and resolving disputes between the UK and the EU. These are all weighty matters which warrant proper consideration by MPs before any debate and vote on them.

The Bill could be more accurately called the “Delay our exit from the EU ” Bill, or ” The Reimposition of EU powers “Bill given the requirements of the draft Withdrawal Treaty. The Bill itself would of course need to conform precisely with the Treaty, as the Treaty will be  binding in European law anyway.

 

Yours ever

 

John

When I sent my letter I was still hoping to persuade the government to announce it could not get its Withdrawal Agreement through and to process to the free trade WTO exit route. A good answer would have been along these lines:

Dear John

You are right that in order to try to get an Agreement with the EU the UK did make various compromises. It also asked for an extension to our membership for a 21 month or two year period which came at a price over money and powers.  The government thought this the best answer, but it is now clear people and Parliament do not agree.

We are therefore now looking at an expedited exit from the EU without signing the Withdrawal Agreement. We will be tabling a comprehensive free trade proposal, which the EU Commission has indicated it will consider.

 

Yours etc

 

I also thought I might get a whitewash brush off letter:

 

Dear John

 

Thank you for your letter. Whilst we do not agree with your interpretation of what might happen were we to sign the EU Withdrawal Treaty, I acknowledge as you mainly point out that in the transition period the UK will continue to make budgetary payments and observe EU laws. This seems to the government to be entirely fair and to give the UK more time to adjust to exit. I do not accept we will necessarily be in transition for almost four more years, nor accept that we will have to stay in the customs union indefinitely owing to the backstop provision. The powers and charges  that last beyond transition are proportionate and reasonable.

You need to accept that compromises have to be made and this was the best deal the UK government was able to negotiate.

Yours etc

 

The argument over which of two Ministers might reply indicates to me a certain unhappiness about having to deal with the individual points highlighted in the letter, and a recognition that the draft treaty does indeed keep the UK under the full control of the EU for at least 21 more months and maybe much longer depending on how things work out. It is on any reading a Stay in not a leave agreement. The argument is over how long it might last and what it does to any eventual leaving, given the way it removes many of the UK’s best bargaining levers. The backstop threatens permanent customs membership and other clauses have an impact well beyond the next 21 months. It does not unequivocally let us leave at any future date, and binds us in to more EU controls and bills without vote or voice to protest. Under it you can be sure we are locked in on bad terms for an unspecified period, with no easy way out and under huge pressure to sacrifice yet more to try to get out.

Looking at the latest European election polls, I am urging the Conservative government  to change its approach to our exit from the EU.

A large majority of the public do not see the Withdrawal Agreement as a good deal for the UK, or as Brexit. It unites Remain and Leave voters in opposition.

It is urgent not just for the Conservative party but for our country that either Mrs May accepts the Agreement cannot proceed, or a new PM takes over who starts by telling the EU the Agreement is  unacceptable. The Conservative-Labour talks as predicted are not helping either party.  We need to leave now, responding positively to the EU offer of talks on a free trade agreement. We should not be holding these European elections as we do not want to have another 5 years as members of the EU. The 2017 Conservative Manifesto was right to say No deal is better than a bad deal, and to propose exit on 29 March 2019.

One of the big themes of my book is the breakdown in trust in Establishment forecasts, remedies and ability to even identify what people think the problems are. In a healthy democracy there are always sceptics, campaigners trying to change the agenda, and differences of expert opinion. In recent years there has been a bigger reduction in trust in establishment analysis and priorities, allied to more concerted attempts by the establishment to crowd out any alternative narrative or policy approach. They have got better at spinning as they have got worse at managing.

 

In the area I know best, economic forecasts and policy making, the banking crash and its aftermath was a major knock to confidence in official forecasts and their ability to make policy for prosperity. The widespread adoption of austerity policies, especially the extreme ones in the Euro area, added to the disillusion. It is true that the UK Treasury and Bank had  a very disappointing record prior to the Great Recession, but that for many was the final straw.

Most of my adult life I have been a critic of successive Treasury policies by  the changing governments who usually perish through economic incompetence. In the 1970s I was urging more prudent policies on spending and borrowing, only to see Labour humiliate our country by having to go for a bail out at the IMF and bring on a nasty recession.

In the 1980s I successfully battled against submitting the UK to the boom bust torture of the European Exchange Rate Mechanism, only to lose the battle at the end of the decade. The scheme did even more damage than I imagined , plunged us into recession and threw the Conservative party out of office for 13 years as a result.

 

In the period from 2005 I was one of many warning of excessive debt and credit building in the system. After 2007 I was a lonely voice urging a less severe approach to sorting out the banking system,watching the authorities break some banks and trigger another large recession. That threw Labour out of office. Today I remain a critic of the over tight money policy and the damaging tax policy of the current government, which is slowing growth too much.

 

The Referendum campaign was another major blow to expert opinion and trust  in government financial institutions. Their stupid pessimism for the econony if we dared to vote to leave the EU was soon disproved by events. It confirmed critics in thinking official forecasts are politically rigged to suit the establishment.

On Friday 17 May at 2 pm  I am giving a talk on the collapse of great parties and  the rise of scepticism  about establishment opinion  at All Souls  College, High Street Oxford.

All those interested in coming  should email myles.larrington@parliament.uk so we can tell the Lodge at All Souls  to let you in.

I am happy to take questions on anything from migration to climate change, from Brexit to the trade war.

.

 

I wrote the minority report on how to introduce private capital into the nationalised railway when I was in government. I proposed keeping track and trains together. The majority went with the idea of splitting the ownership and management of track from trains. This just happened to be the EU view, which became a requirement. My main objection to the split was it created a massive monopoly track and stations provider which would be unresponsive to the ultimate customers, the passengers, and not especially responsive to the smaller and temporary franchise companies running the trains.

It was bound to lead to rows over who was to blame when a train is late. Was it poor track, bad signals,  the  requirements of the network provider? Or was it poor trains, driver problems or other issues from the operating companies?  As I feared there were plenty of delays and plenty of disputes about who was to blame. Poor signalling and network management was often the cause, but so was poor labour relations by the train companies.

It was also likely to push the network provider  back into the public sector. Such a large concentration of power invited Ministerial intervention. The perceived need to continue to subsidise the railways meant a stream of cash going from taxpayers to the industry, with the network provider likely to be lobbying. One of the main reasons nationalised monopolies often served their customers badly was the perception of their Boards and senior management that their customer was the government, not the people using the service or buying the product. They looked upwards for taxpayer cash and Ministerial directives. They did not look down to find out what customers wanted and to treasure their financial contributions.

I recommend that the government examine ways to reconnect track with trains under common management. That way the investment programmes can be compatible and co-ordinated, and passengers know who to blame for poor or insufficient service.  The train company can be responsible for the whole experience, on the station, on the train and the train’s performance on the track. They would have more incentive to make those smaller but timely investments in better signals, better information systems, short passing places and the like that could revolutionise train service reliability and add to capacity where needed. One of the big constraints on train traffic growth today is the nationalised network providers inability to supply sufficient train slots at busy times for more popular services.

 

The integrated  companies in turn must not be unchallenged monopolies otherwise they too will be less responsive to customers and more minded to play political games around subsidy and government led structural decisions. The main rail company owning a given line or region of track would have to treat the track as a common carrier and be prepared to lease train spaces to rival companies. There will need to be an independent access regulator to ensure this is observed and practised fairly. Challenger companies should also have the right to add track to the existing network, again with suitable regulatory supervision of revenue sharing, safety and other matters. It is possible to design decent sized integrated companies that leave open competition between lines and services. The obvious case of East coast versus West coast mainline is not the only one. These lines should be owned by different companies.

Train companies will need subsidy in some cases. There needs to be clear rules over subsidy allocation. The things to avoid include  a subsidy system which protects a fossilised service, keeping routes which would  be  better replaced by new services. It is also a danger that the maximum subsidy goes to the least used service, providing a perverse incentive to run unpopular services because they have always been  services.

 

(to be continued)

At the launch of “We don’t believe you” yesterday I stressed the way most Christian Democrat and Social democrat parties on the continent have ceased to be serious challengers for power, giving way to new parties that are usually more critical of the EU scheme, of austerity economics, the Euro, migration and benefit policies, dear energy and the rest. I pointed out how Conservative and Labour detached themselves from decline and fall on the continental model in the 2017 General election, achieving 82.4% of the vote between them.

More recently with the Conservative government delaying Brexit and Labour going towards a second referendum and dumping Brexit altogether, they have slumped to just 56% together in the local elections, with worse polls for the European elections so far. The message is clear – leave the EU quickly and popularity is likely to return, stay in and get sucked into the continental turning away from traditional parties.

“We don’t believe you” available on AMAZON

The price is paperback £6.99; kindle £4.99.

The links to the book to buy online:

Paperback version:

ISBN-10: 1095254952
ISBN-13: 978-1095254950

Kindle version:

ASIN: B07QYBK9SZ

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On Bite-Sized Books website:

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The book has chapters on military intervention, austerity economics, Brexit, the collapse of the Social Democrats and Christian Democrats as governing parties in most of the EU,the clash between social media and conventional media, the way some large businesses side with big government to the annoyance of their customers, political correctness, large scale migration and the difficulties caused by the Euro.

“We don’t believe you Why Populists reject the establishment” Bite-sized books Available through Amazon

Given the government’s difficulty in replying to this, I am re issuing it and encourage all to circulate it more widely. The conventional media refuse to ask these questions of the government and supporters of the Agreement.

Dear Geoffrey

Let me have another go at getting a reply from you concerning the way the Withdrawal Agreement stops us leaving the EU. Would you kindly confirm

1. If we sign this Treaty we will be locked into the EU and have to obey all its rules and pay all the bills it sends us for a period of at least 21 months, and probably for 45 months if we have not surrendered further to reach an exit agreement at the 21 month stage. This would mean remaining in the EU for at least 5 years from the decision to leave and probably for 7 years. The EU would be able to legislate and spend against UK interests during this period, whilst we would have no vote or voice in the matter.

2. In order to “leave” in your terms at the 5 to 7 year stage the UK will need to stay in the customs union and accept all single market rules and laws, unless the EU relented over the alleged Irish border issue. 3 years on and the EU has given no ground on the made up border issue, so why would they over the next two years? Isn’t the most likely outcome we would remain in the single market and customs union contrary to the government promise leaving meant leaving them in its referendum literature ?

3. After the 45 month period fully in the EU, the UK still would face financial obligations under the Withdrawal Treaty. The bills will be decided by the EU and we will have to pay them. Any attempt to query them would be adjudicated by the EU’s own court! The longer we stay in the more the future bills are likely to be. The £39 bn figure is likely to be a considerable underestimate.

4 The Treaty creates a category of super citizen in the UK. EU nationals living in the UK when we “leave” the EU will have their access to benefits guaranteed in a way the rest of us do not for their entire lifetimes. So we will not be taking back control of our benefit system.

I am also concerned about a number of Articles in the draft Treaty that expressly extend EU powers and jurisdiction for a further 4 to 8 years beyond our departure date after the 21 to 45 month delay.

Article 3 asserts EU legal jurisdiction over Gibraltar and British overseas territories in general terms, where disputes about the extent of EU control would fall via the Agreement under the European Court of justice.
Article 5 reintroduces the powers of the European Court and enforces “sincere co-operation ” on us as they do not want us impeding their plans for economic, monetary and political union.
Article 31 imposes social security co-ordination on us.
Article 39 gives special protection to EU citizens currently living in the UK from changes to social security for the whole of their lives, protection which the rest of us do not enjoy.
Article 51 applies parts of the VAT regime for an additional 5 years after the long transition envisaged in the Treaty
Articles 92-3 imposes the EU state aids regime on the UK for 4 years beyond transition
Article 95 imposes binding decisions by EU quangos and bodies for 4 years beyond transition
Article 99 requires us to pay for access to records to handle issues over indirect tax where the EU keeps powers for 4 years beyond transition
Article 127 applies the whole panoply of EU law throughout transition, including the right to legislate any way they wish against our interests and enforce it on us via the ECJ
Article 130 prevents us taking back control of our fish any time soon. Doubtless more of our fishing rights would be given away trying to get an exit deal.
Article 135 allows them to send extra bills up to the end of 2028
Article 140 imposes on us financial liabilities up to December 2020 and carry over into 2021
Articles 144 and 150 prevent us getting back accumulated reserves and profits from our European Investment Fund and EIB shareholdings
Article 143 imposes adverse conditions on us over pension and loan liabilities of the Union
Article 155 requires us to make continuing payments to Turkey under an EU programme after we have left
Article 158 gives the European Court continuing power for 8 years after transition
Article 164 makes a Joint Committee an effective legislator and government over us
Article 168, the exclusivity clause , denies us access to normal international law remedies in the event of disputes. Presumably this closes off use of the Vienna Convention to renounce an onerous Treaty where there has been a material change of circumstances.
Article 174 requires any arbitration to be governed by ECJ judgements on the application of law in disputes
The Protocol on Northern Ireland will require us to stay in the Customs Union with regulatory and legal alignment with the single market, or split off a separate place called UK (NI) which will be governed differently to the rest of the UK on an island of Ireland basis.
There is much more I could object to. This is no Treaty to take back control, no Treaty for a newly independent nation. It does not quantify the financial liabilities, which are open ended and could be much larger than the low field £39bn Treasury estimate. We have little power to abate the bills and no power to abort the bills. It would probably result even in failure to take back control of our fishing grounds.
Mrs May needs to go back to the EU and explain why the UK people and Parliament have opposed this Treaty, and ask them to think again if they want an agreement before we leave. She needs to make it clear we now intend to leave without signing the Withdrawal Agreement prior to the European Parliamentary elections.
Yours
John Redwood

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This week I met the Williams rail review team and gave them some analysis and proposals for improving the railway. They are reviewing the current system and will be offering policy proposals to the government. I will send them a formal written follow up.

General aims

The prime aim of the railways should be to provide safe and reliable transport for people and goods in the UK.

The Review needs to consider how we can improve the traveller’s experience, placing the customer at the heart of railway reform and improvement. Any structural changes proposed should be ones that will promote improved travel for customers. Greater choice is likely to be a guiding principle to ensure a better passenger experience. This in turn will require more capacity at popular times on popular routes. Punctuality and reliability are crucial to passenger satisfaction.

Capacity

The railway is most useful for commuters and peak time business users wishing to get to work and back at times when the roads are congested, and seeking to travel long distance in a timely way. These essential trips are the ones most liable to shortage of capacity and shortage of choice of trains to meet the requirement.

The industry typically runs just 20 trains an hour on any given stretch of track. On main routes into large cities this can mean just two or three trains an hour when we could do with a multiple of that from any given station along the route. In my case there are only 6 trains between 7 and 9 in the morning to Waterloo from Wokingham, a popular route where more choice and capacity would be welcome.

The railway needs to speed up the introduction of digital signalling to give full system visibility of where every train is, with feedback to each train to ensure no collisions. The railway accepts this could lead to a 25% increase in capacity. In due course it may provide a 50% increase in capacity. The London underground can now manage 30 trains an hour on modernised lines. Effective capacity could also be improved by selective investment in short additional sections of track to allow more overtaking. All too often a fast limited stop train gets caught behind a slow stopper, disrupting timetables. This will be a much cheaper option than building new long haul railway lines. It will also boost network safety.

Home to work, home to holiday travel

Travellers want to know the time it takes to do their whole journey, not just the time from one station near departure to one station near destination. We also want to know how easy or difficult getting to and from the station is going to be. The railway industry has to work with Highway authorities, car parking businesses, bus and taxi firms on total journey times, costs and hassle.

Station car parking needs to be cheaper, more plentiful and easier to get to. Highways authorities often do few favours to stations, delaying access to station car parks by restricted road space, aggressive lights,unhelpful one way systems and limited roadspace on the main feeder roads. This puts off potential train users who may find it cheaper and faster to head away from the town centre where the station lies to get directly onto the motorway and trunk road system to do the whole journey by road.

Bus services need to be more easily accessible for travellers visiting new places. The train companies could make information available on trains about the main public transport options at each station for those needing advice.It is time there are display screens in carriages with more journey and connection information for those interested, with an option of interactive service on a travellers phone or tablet.They should also offer real time information about the journey and estimsted arrival times, to allow re scheduling of your day where a train is running late. For tourist and leisure travellers there could be more information available about the places beibg passed and visited.

(to be continued)