Lord Young of Cookham (Con)

My Lords, I intervene briefly to support my noble friend Lord Moylan’s amendments on this. In many ways, this debate is similar in its nature to the one we have just had, in that it relates to how the GBR relates to an independent sector. In the previous debate, it was independent retailers; in this case, it is the independent operators using open access. Again, the terms of trade are being changed. If one looks at the consultation document on this, it says that: “GBR will become the decision maker for key decisions on access terms that are currently led by the ORR: the duration and form of access rights, developing and setting the access charges framework and the design of performance incentive regimes contained in track access regimes”. It goes on to say that: “For GBR to have the space and authority to take access decisions on the best use of its network, the ORR’s current role must change”. At the moment, the ORR has the last word on an open access application, and the department cannot overrule it; that is going to change. We have had representations from the open access operators. I have had also representations about the Elizabeth line and Heathrow Express, which are both anxious that they could be adversely affected by this change in responsibility. The noble Lord may remember a debate we had in the Moses Room about 18 months ago on this particular subject, which I introduced. At that point, I referred to another debate in the other place, where there was a lot of support from Labour MPs for the principle of open access: their constituents had benefited from it, and they were concerned that it might be curtailed. My noble friend Lord Moylan referred to access charges and how changing the access charge could make it uneconomic. I want to approach this from a slightly different point of view, which concerns the criteria that the ORR uses to decide whether to grant open access. If there is no capacity on the rail network, it is clear that the application should be refused. If there is capacity, the ORR refers to the NPA—not primarily abstractive—rate. That means that if you want to open a new service, you must add at least 30p of new revenue for every £1 you abstract from the existing ones. In other words, any new service must not rely on more than 70% of its revenue to justify its application. There is concern that that abstraction rate might be changed. One assurance that the Minister could give, which would reassure the operators of open access, is that GBR will not change the abstraction rate. The rate has been in operation for some time. It balances, on one hand, the cost to the taxpayer and, on the other, the benefit to the traveller in terms of improved connectivity and, in many cases, lower fares. We know that the concern is justified from the letter that the Secretary of State, Heidi Alexander, wrote to the ORR back in January. The ORR is already mindful of the cost to the taxpayer—that is reflected in the abstraction rate—but the letter reminded it of that cost. There was a clear implication that not enough attention was being paid to that factor, hence the concern. I hope the Minister will be able to give assurances that, apart from the issue of the access charges addressed by my noble friend, the abstraction rate will not be altered either.