Where Labour now stands on rail – and what the NPF must decide

Nick Robinson reported earlier this evening that “Labour will soon unveil a promise to change the law to allow for the part re-nationalisation of the rail network.” Except that’s not exactly the case. Tomorrow the National Policy Forum (NPF) will begin meeting in Milton Keynes for their all important three day meeting. Once there delegates will be voting on a wide range of potential Labour Party policy positions – rail will be one of those areas discussed tomorrow afternoon.

Sources in both the Labour Party and the unions this evening seemed annoyed that talk of a rail pledge had broken this evening – before the NPF votes. Fortunately, senior Labour sources were keen to stress that what is on the table at present is merely a proposal, and will still need to be passed by the NPF. They’re right not to announce too soon – no-one truly knows how delegates elected by members will vote – and a recent LabourList survey suggested our readers wanted something that looks like renationalisation.

So what does the proposal (which the NPF will debate tomorrow) look like:

– It allows the public sector and not-for-profits to bid for rail franchises (as was suggested in the Guardian two weeks ago), but goes further – pledging to reform the failed franchise system, the proposal could ultimately spell the end of the franchise system full stop.

– Crucially, it devolves transport down to local areas – especially towns and cities – allowing for other cities in the UK to use the model of Transport For London, and integrate rail, bus and other forms of transport providing a better deal for commuters.

–  It would also create a new body – accountable to Parliament – to implement a national railway strategy. That sound vague at the moment, but it could – and should – mean a tighter reign on those private companies that still remain in the rail network.

Sources close to Jon Cruddas indicated that the proposal “goes beyond the public versus private debate. It would deliver a broader, radical reform agenda to save money and stop passengers being ripped off.”. Indeed, that sounds a lot like what Cruddas wrote for LabourList last week.

NPF delegates must decide tomorrow if they’ll back this proposal – although I’d prefer to see franchises taken back under public control as they expire, this plan goes further than I expected the party to go, and doesn’t close the door to full public ownership in future. If Labour can leave Milton Keynes with similar progress on housing, social care and wages – some of the other key issues in play this weekend – the party could be on the road to the radical manifesto Labour needs.

More on this over the next few days – watch this space…

Update: Here’s the motion:

“Since the late 1990s there has been significant investment in the railways and passenger numbers have grown sharply. But it is now clear that the rail system is not delivering a fair deal for passengers or the taxpayer, almost 20 years on from the botched privatisation of the railways. Both public subsidy and fares are higher than in other countries, and there is no ‘guiding mind’ overseeing the railways, planning investment and ensuring results. We have also seen a chaotic franchising process in recent years that has cost millions. To tackle these problems the next Labour government will:

“Review this government’s failed franchising process as a priority, after the chaos of recent years, to safeguard taxpayer and passenger interests and put in place a system that is fit for purpose.

“Learn the lessons of East Coast, where we have seen the benefits of a not-for-dividend operator running rail lines, by legislating to allow a public sector operator to be able take on lines and challenge the train operators on a genuinely level playing field to secure value for money for passengers and taxpayers.

“Devolve decisions over the running of regional and local services, including to Scotland and Wales, so that areas can bring together trains, buses, ferries and trams into a single network.

“Tackle the monopoly market for rail rolling stock by giving Network Rail greater responsibility for developing a long term plan for procurement and leasing of new rolling stock.

“Create a new guiding mind for the railways, bringing Network Rail together with a new passenger rail body to contract routes, co-ordinate services, oversee stations and ensure customer satisfaction across the network.

“Ease the pressure on fare payers with the efficiencies these reforms release and by capping annual fare rises on every route, simplifying fare structures and creating a new legal right to the cheapest ticket.”