Contribution
My Lords, this has been a very powerful debate. I am grateful to all noble Lords who tabled amendments and for the contributions of noble Baroness, Lady Alexander, and the noble Lord, Lord Beith. About the only thing that I disagree with the noble Baroness, Lady Harding, on is that this is not railway related. I think it is, it is about selling railway travel, but I have huge respect for her experience of other markets, as I have for the noble Lord, Lord Holmes.
I reassure noble Lords that we are absolutely aligned with the intentions of these amendments. We want an open and competitive retail market, and we completely support the benefits that independent retailers can bring. I may not have time to answer the points that the noble Lord, Lord Moylan, has just made, but if I do not do so now, I will later because there are other ways in which the railway can derive data about its customers. I do not think the acquisition of data is sufficient justification for only the railway to sell its product, but I must have a railway that is able to sell its own product because I want its staff, managers and directors to care about its income and its passengers.
Once GBR is established, it will have a retail function, as provided for by Clause 3. Crucially, this will be accessible via all channels—through station ticket offices, ticket vending machines, onboard trains, access through gates, ticket inspectors and online—ensuring that it serves passengers however they buy their tickets. GBR’s future online retailer, its website and app will operate in a fair, open and competitive market. To be clear, independent retailers help drive innovation, improve passenger experience and increase choice for customers purchasing rail tickets.
We realise that the dual role as a retailer and the provider of certain cross-industry systems and services could create potential conflict of interest risks. That is why we have announced a robust package of safeguards specifically designed to address these concerns. In response to the CMA report in 2025, mentioned by noble Lords in the debate, we are proposing an industry retail code of practice owned by the Office of Rail and Road and backed with the force of a GBR licence condition ensuring that the ORR will enforce GBR’s compliance with it. For the record, paragraph 5 of Schedule 1 is the place where the ORR is required to create the code and enforce it.
I can confirm today that the draft code will require GBR to adhere to a range of principles. These include ensuring access to products, providing services and data on fair, transparent and non-discriminatory terms and supporting new market entrants. We are determined that all retailers can sell all tickets. The draft code will also require safeguards around our decision to separate decision-making between GBR’s retail activity and its cross-industry systems and services, supported by appropriate information protections. This provides more protection for third-party retailers than exist today when competing with myriad train operators.
If GBR does not comply with the code, the ORR can employ enforcement measures up to and including a legally binding mandatory order for GBR to change its actions. These enforcement measures can be employed in response to a third party raising an issue with the regulator or where ORR identifies an issue through its routine monitoring. The full draft code will be published when the ORR launches its consultation before the end the next recess. This follows extensive engagement it has already undertaken with industry. It will consider feedback from the consultation informing the final draft of the code of practice in 2027. In answer to the noble Lord, Lord Lansley, we are expecting the CMA to respond to the consultation that the ORR will launch.
As noble Lords have suggested, we want the ORR to be adequately resourced to carry out these functions. Noble Lords who came to the session we had last week, referred to by the noble Lord, Lord Young, will have heard reassurance from the senior leadership of the ORR that they intend to do this and are prepared to do so.
I should also be clear that GBR will be required to comply with competition law. The ORR and the Competition and Markets Authority will continue to oversee the market, and both already have powers to act where anti-competitive behaviour is identified. Alongside that existing framework, the code will create a framework that represents a more extensive form of regulatory assurance than is currently found in most comparable European rail markets. The Government therefore believe that the objectives of these amendments are already being delivered. The code will provide meaningful protection for independent retailers and can adapt as the market develops.
Amendments 49 and 181 were tabled by the noble Lord, Lord Moylan, and concern cross-subsidisation—