EMC CONSULTATION RESPONSE FOR DfT’S EM FRANCHISE CONSULTATION STATUS: DRAFT FOR COMMENT East Midlands Consultation Co-ordinator Department for Transport 2/21 Great Minster House 33 Horseferry Road London SW1P 4DR Dear Sir/Madam East Midlands Franchise Consultation Response This consultation response is sent on behalf of East Midlands Councils (EMC). The comments set out below have been influenced by a workshop attended by almost 50 stakeholders and it has been formally approved by Transport for the East Midlands at their meeting on (date TBC) September 2017 and the EMC Executive Board at their meeting held on (date TBC). Thank you for inviting input into the franchise specification, attached to this letter are the answers to the specific questions raised in the consultation document, these answers should be read alongside this covering letter which explains EMC’s areas of concern and the reason why service improvement is critical to the region. It is important to recognise that the East Midlands has helped to lead the UK out of recession, with strong private sector job growth over the last five years. Looking to the future, the East Midlands has huge potential for further export-led growth (already accounting for 20% of GVA) and is well placed to thrive in a post-Brexit economy. The region also has a strong academic network, with a number of high performing universities and colleges that can support the development of a strong knowledge based economy. But this is dependent upon having excellent access to London and regional business markets and a rail offer that makes it attractive for people to travel by train. Latest projections from the Office of National Statistics suggest the population of the East Midlands will rise by half a million people to 5.1 million by 2030 – the fastest growth outside London and the wider south east. Key hot spots include Derby, Leicester, Nottingham and Lincoln which all have young, dynamic and well educated populations and Corby has the highest projected population growth outside of London – a 16.7% increase over the next 10 years. The East Midlands has consistently delivered a higher proportionate share of the nation’s housing supply. Councils remain committed to the delivery of new housing to meet local needs and future economic prospects, with plans to deliver an additional 400,000 new homes over the next 20 years. The key facts above mean it is critical that the proposed East Midlands Franchise process plans not only for today’s needs, but also plans to solve the future growth needs now. Turning now to the Governments proposals: Aspirations – We are happy to support the high level aspirations of: 1 | P a g e Improved connectivity More on-train comfort and space for passengers Improved customer service The introduction of more flexible ticketing offering better value for money Furthermore we welcome a franchise that clearly segments the train service offer, differentiating between London Bound Intercity services; express inter-urban services and local/regional stopping services. We wish to see services branded as such in livery focused on the East Midlands market being served. Furthermore the branding should be contractually positioned to be owned by the DfT so that the wasteful and unnecessary cost of changing the branding every new franchise period is avoided. We see East Midlands Councils having a role in agreeing this branding alongside the DfT. Timescales – We are concerned that the franchise is further delayed to August 2019. This delay must not hold back investment plans. Therefore the Direct Award must commence the early planning stages for new trains etc. and the work handed over to the winning TOC so they can take up the reigns during the mobilisation stage, with the DfT overseeing and underwriting the costs during this process. Infrastructure – We are very concerned about the decision to abandon the procurement of electric rolling stock and electrify the Midland Mainline north to Nottingham and Sheffield. Intercity services pass through a number of Air Quality Management Areas within which diesel has been shown to produce pollution detrimental to people’s health. Alongside other initiatives to reduce pollution levels (for example through car engine design and access strategies) rail needs to do its part, and Government show leadership through non-diesel train specification now. It is also unclear whether the line speed south of Bedford will be upgraded to 125mph speeds. Trains - the proposal to introduce new rolling stock on London bound services is welcomed. In the absence of a fully electrified route then Bi-mode trains are the next best (proven) alternative. However concerns are raised about the speed of delivery of the new trains if procurement cannot start until August 2019. I refer you to the timescale comments above. Direct Award – the extended Direct Award until August 2019 is a material concern to EMC, the short term franchise extensions mean that rail investment decisions are based on short term needs and costs only. Rather than await the new franchise to commence, early work undertaken alongside the DfT and involving bidders, to develop the new Bi-Mode rolling stock is needed so that the new trains, with increased quality and capacity are delivered sooner rather than later. Additionally the Direct Award must address the existing and pressing capacity issues and deliver the 7 day service aspirations now and in advance of the new franchise. I hope this information and the formal reply below will help you specify a forward thinking franchise with rolling stock standards and capacity to meet future demand and a service pattern that will support a 7 day economy and future economic growth. Yours faithfully, AP 2 | P a g e EAST MIDLANDS COUNCILS CONSULTATION RESPONSE - DRAFT Q1 How do you think closer co-operation between staff in Network Rail and the operator of the next East Midlands franchise can be achieved? A1 Your view: The railway in the UK is split between those who provide and maintain the tracks and those who operate the services, these organisations need to operate alongside the government bodies responsible for the economic and transport strategies and the Department for Transport (DfT) who procure the services. In balancing the needs to maintain and improve the infrastructure and operate the services it is essential that DfT make clear that safety and passenger needs must be given the highest priority. We wish to see a franchise which delivers continued performance improvement, provides a passenger focused approach to service delivery as well as maintenance and enhancement works, and is motivated to support economic growth and the local communities adjoining and served by the franchise. This means there needs to be a very close alignment between all parties to ensure that the services provided supports the economic growth ambition and transport strategy objectives, by providing the right rail infrastructure for the services to meet the community need. The right standard and capacity of services operated to the right timetable and all provided at a price that Treasury can afford. Regular meetings between the winning Train Operating Company (TOC), Network Rail, DfT and East Midlands Councils (EMC) is strategically important to build alignment. EMC can provide the strategic position for the East Midlands Region, as well as being best placed to provide the bridge to local authority partners within the region. Bidders also need to propose how best to engage with and support the communities around and served by the franchise. We consider that it would be helpful if there was a formal and on- going role for East Midlands Councils within the franchise management. Decisions on investments like electrification should be taken in the light of local views, not simply led from London or decisions driven by safety or cost alone, this is because there are a significant number of rail jobs located in the East Midlands, especially focused around Derby. This includes over 100 companies directly working within the rail industry, Network Rail have recruited 300 jobs in the region to work on electrification, and these businesses and jobs will in turn support other local enterprises. Q2 How can the operator of the next East Midlands franchise engage with community rail partnerships or heritage railways to support the local economy to stimulate demand for rail services in the region? A2 Community rail partnerships to support the local economy to stimulate DEMAND for rail services in the region? 3 | P a g e EAST MIDLANDS COUNCILS CONSULTATION RESPONSE - DRAFT Engagement between the railways and community should be beneficial to both, but should be Community led, rather than rail imposed. For the railway industry community engagement can lead to increased patronage and income, reduced costs, and improved safety etc. For the community, involvement can lead to, community pride, reduced anti-social behaviour, the creation of jobs, community cohesion, reduced isolation and improved awareness of and access to adjoining communities etc. Community involvement in the railway needs to consider community in its widest definition, including rail users, future rail users, neighbours, stakeholders as organisations and individuals etc. and reflecting and embracing the diversity of each local community. Through these people and those employed staff, funded by the DfT/TOC, the community resource should mobilise local business and the wider community in support of both community and rail objectives. We wish to enable the community to have the widest role in supporting local lines and stations, at larger stations this will be more of a supporting role. Community involvement does not ordinarily replace the responsibilities of the Train Operator or Network Rail, but properly supported and encouraged they can supplement this resource and make a real difference. The DfT/TOC’s role is therefore one of providing resource and leadership in partnership with the community.