Joint Press Release from Andy McDonald MP and Sheila Gilmore MP: Directly Operated Railways set to take over Great Western

Posted on June 12, 2013 by Sheila Gilmore

The future of the government‘s controversial franchising scheme was thrown further into doubt today with the announcement that Directly Operated Railways (DOR), a company wholly owned by the Department for Transport, has been instructed to set up a subsidiary to potentially run the Great Western franchise. GW Railway Ltd will operate the vital infrastructure link from London to Wales and the South East if talks with First Group, the current franchisees, do not reach a mutually satisfactory conclusion.

Middlesbrough MP Andy McDonald, who last week led a Commons debate on the future of the East Coast Main Line, which is currently operated by DOR, said:

The readiness to return the Great Western railway to public ownership demonstrates the Government’s continued confidence in Directly Operated Railways to succeed where private sector operators cannot. This confidence is entirely appropriate given the tremendous achievements of DOR on the East Coast Main Line.

However this move makes the Government’s decision to go full steam ahead on handing East Coast back to the private sector all the more baffling. It is vital that these public services are run for the benefit of the public, and not as sources of subsidy for shareholders.

Edinburgh East MP Sheila Gilmore, who has secured a further Commons debate on the future of the East Coast Main Line next week, said:

The Government’s misguided faith that private is always best has led them to prioritise the re-privatisation of East Coast at the cost of lengthy extensions to other franchises. Now First are demanding extortionate taxpayer subsidies to run Great Western, Ministers are having to ask the public sector to step in again.

This should prompt a rethink. At a minimum, East Coast, which has returned more than £640 million of premium payments to the Treasury since 2009, should be retained as a public sector comparator. Better still, other franchises should be brought back into the public sector and then merged with infrastructure provider Network Rail. Only this way will the railway’s costs be brought under control and sky-high fares be brought down.

Ends

Notes to Editors:

Statement from DOR to the RMT union reads:

“GW Railway Ltd, a wholly owned subsidiary of Directly Operated Railways, has today submitted applications to the Office of Rail Regulation (ORR) for a Safety Certificate (Part A and Part B) and Safety Authorisation in respect of undertaking train and station operations on the Great Western Franchise (i.e. the line of route currently operated by First Greater Western), should current negotiations between the Department for Transport and First Group, on a short term extension to the franchise commencing in October 2013, fail to reach a satisfactory conclusion.”

You can find the RMT’s press release here.

Sheila Gilmore will lead a Backbench Business Committee debate in the House of Commons next Thursday (20th June) from 2.30-5pm. Andy McDonald led a Westminster Hall debate on the same issues last Wednesday (5th June), a transcript of which can be found here.

Any questions please contact Sam Wheeler in Andy McDonald’s office on 02072194995 or sam.wheeler@parliament.uk , or Matt Brennan in Sheila Gilmore’s office on 02072197062 or matthew.brennan@parliament.uk.

Press Release: MP sends Minister speech before debate on controversial benefit test

Posted on June 11, 2013 by Sheila Gilmore

Debate on audio recording of test for Employment and Support Allowance at 7pm on Wednesday
Sheila Gilmore’s speech sent to Minister responsible this afternoon
Minister can have no excuses for not answering questions

In advance of a debate on the test for controversial sickness and disability benefit ESA, Work and Pensions Select Committee member Sheila Gilmore today took the unusual step of emailing an advance copy of her speech to the Minister due to respond, Mark Hoban.

The Work Capability Assessment (WCA) is used to determine whether people can get Employment and Support Allowance (ESA), which replaced the old-fashioned Incapacity Benefit in 2008. Since its introduction many claimants have been incorrectly found fit for work. Sheila Gilmore has secured a half hour debate at 7pm on Wednesday 12 June on the question of whether these assessments should be audio recorded to improve their accuracy, something the Government are currently resisting.

Speaking today Sheila Gilmore said:

Today I have taken the unusual step of emailing a copy of my speech for an upcoming debate to Mark Hoban, the Minister due to speak for the Government. Now he can have no excuse for not answering the important questions I intend to put to him.

Sheila Gilmore went on to say:

Since the introduction of the Work Capability Assessment, 4 in 10 people found fit for work have appealed their decision – costing the taxpayer £50 million per year – and four in ten of those appeals have been successful.

That’s why I’ve been calling on the Government to fix the flaws in the Work Capability Assessment, and one of the first things they could do is roll out audio recording to all assessments.

In my speech I pick apart the Government’s case against the use of audio recordings. In particular I debunk their suggestion that there isn’t any demand from claimants for this. I want to ensure the Minister can’t ignore these points, and that’s why I’ve take this action today.

Notes

See the email Sheila Gilmore sent to Mark Hoban here.
Sheila Gilmore is a member of the Commons Work and Pensions Select Committee. You can view the committee’s website here.
For more information please contact Matt Brennan, Parliamentary Assistant to Sheila Gilmore MP, on 020 7219 7062, 07742 986 513 or matthew.brennan@parliament.uk.

Press Release: Edinburgh MP backs measures on housing in new vision for social security

Posted on June 7, 2013 by Sheila Gilmore

Edinburgh East MP and Work and Pensions Select Committee member Sheila Gilmore today welcomed Labour’s new vision for social security, with its focus on building more houses to cut the Housing Benefit bill.

Ed Miliband yesterday set out how a future Labour Government would transform social security. He outlined four key aims for this new vision – finding work for everyone who can work, tackling low pay, rewarding those who have contributed more, and spending money on houses instead of housing benefit.

Sheila Gilmore MP said:

Here in Edinburgh we have several thousand households living in expensive private rented housing not through choice, but because of the acute shortage of council and housing association homes. The evidence is there in the number of people bidding week after week for such homes.

Knowing that they need to keep their Housing Benefit to pay their sky high rents, many are also put off working and are, in effect, trapped on benefits.

We need to tackle both our housing crisis and get people back to work. That’s why I’m backing Ed Miliband and Ed Balls this week as they set out their plans to control social security spending the Labour way – by tackling the real problems that keep costs high.

I’m asking people in Edinburgh to join me in backing social security reform – switching money from housing benefit paid to private landlords to invest in building new houses again.

ENDS

Notes to Editors:

The City of Edinburgh Council and housing associations in Edinburgh advertise their available properties for let through Key to Choice (http://keytochoice.scotsman.com/). This week the lowest number of bids for a two bedroom home was 16 and the highest 331, with many around the 100 level ( 32 advertised in all ). Many of those applicants are currently living in the private rented sector and receiving at least some housing benefit.
Sheila Gilmore recently wrote a piece for her website on issues with the council’s Private Sector Leasing schemes.
Sheila Gilmore is a member of the Commons Work and Pensions Select Committee. You can view the committee’s website here.
For more information please contact Matt Brennan, Parliamentary Assistant to Sheila Gilmore MP, on 020 7219 7062, 07742 986 513 or matthew.brennan@parliament.uk.