P&O Ferries and Employment Rights

Baroness Winterton of Doncaster Excerpts

Monday 21st March 2022 Commons Chamber

[Grant Shapps]

I agree with the hon. Gentleman. That is the point I was making. To have a ship called Spirit of Britain, Pride of Kent or any other name that attaches it to this country when it does not have British workers would be completely wrong, and I will be calling on P&O to change the name of the ships. It would be completely inappropriate. I think that was his point. [Interruption.]

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. It is getting very difficult to hear. I know that feelings are running very high, but it is important that we hear what the Secretary of State is saying.

[Grant Shapps]

I directly answered the hon. Gentleman’s question, but that seems to have brought derision, so I think I will make some progress to let the House, the country and those seafarers know what we are doing about this.

On Friday, I communicated my anger to the chief executive of P&O Ferries. I also urged him to engage with the seafarers and trade unions, and offered my support in organising those discussions. It is not too late for those discussions to take place to salvage the situation, so I implore him to do so. The maritime Minister, the Under-Secretary of State for Transport, my hon. Friend the Member for Witney (Robert Courts), also spoke to the chief executive on Thursday and expressed in no uncertain terms our deep disappointment before coming to this House and explaining the Government’s position.

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[Grant Shapps]

In 12 years we have done an awful lot, and I am just about to tell the hon. Lady about it. As I was saying, that is why in our maritime 2050 strategy, which she may not have read, this Government committed to a social framework for UK seafarers that will promote working, pay and social conditions, levelling the playing field with—[Interruption.] Let me explain to hon. Members who have not read the strategy that it is called the 2050 strategy but it takes place now. I do not want them to be confused by the name of the strategy. [Interruption.]

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. We really cannot have Members making it impossible to hear what is being said.

[Emily Thornberry]

But it is so annoying!

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[Several hon. Members rose—]

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. Before I call the Scottish National party spokesperson, I wish to inform the House—[Interruption.] Mr Kane! I wish to inform the House that I will impose a seven-minute time limit to start with. I suspect that that will come down quite quickly, so if colleagues take less than seven minutes, more Members will be able to speak. I call Gavin Newlands.

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[Several hon. Members rose—]

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. I am sure colleagues will understand that I am going to have to reduce the time limit after the next speaker. We will start by reducing it to five minutes after Natalie Elphicke.

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[Several hon. Members rose—]

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. To get everybody in, after the next speaker, I will reduce the time limit to four minutes.

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[Barry Gardiner (Brent North) (Lab)]

The hon. Lady is absolutely correct: nothing in my Bill would ultimately have stopped fire and rehire, and that was with the full cognisance of the 22 unions that supported it. As she knows, however, there were measures in the Bill that would have prevented the current situation.

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. Let me say this before the hon. Lady responds to the intervention: I recognise that important points are being made, but if there are interventions it would be helpful, to ensure that we can get everyone in, for Members to try to stick to the original time limit.

[Laura Farris]

I thank the hon. Member for Brent North for his intervention. As he will know, the reason we do not want to legislate to ban fire and rehire is that we would end up with more dismissals from the decent employer who is under extreme financial stress. As the hon. Member for Bury South (Christian Wakeford) said during that debate, fire and rehire must be “an absolute last resort”, and Conservative Members have always agreed with that proposition.

We feared that the Bill risked more job losses, not fewer, and that is the prevailing view at the employment law Bar. Yesterday I spoke to John Bowers QC, one of the great trade union lawyers of his generation, and his view was that the hon. Member for Brent North was jeopardising jobs with his Bill. If I am incorrect in that regard, I ask the Opposition Front Bencher who winds up the debate to address the question of why, as a matter of law, he is wrong, but it is true to say that the idea that any provision that sets conditions so onerous—as the proposed new section 187B did—that any failure to consult or to disclose everything, no matter how sensitive, could lead to unlimited damages would not lead an employer to dismiss rather than to renegotiate employment terms is fanciful. The Bill would risk more job losses, and we know from the bitter lesson of P&O that if employers can take short cuts, and if they can take the easy option, they will. The Bill would risk more P&Os, not fewer.

I have said previously that the answer to this lies in the ACAS code of practice. Parliament intended it to do so, through sections 203, 207 and 207A of the Trade Union and Labour Relations (Consolidation) Act, which conferred on the Secretary of State a power to pass codes of practice backed up by financial penalties. I have said repeatedly in the House—and I respectfully ask the Minister not to make me do it again—that that is the correct mechanism. It turns the screw on the unscrupulous employer in a way that nothing suggested by the Opposition does. It is also consistent with the prevailing view in the excellent ACAS consultation that took place last summer, when a number of points were made by practitioners, including the question of how it could be demonstrated that fire and rehire was a genuine last resort. Consultation is one aspect of that, but employers should also be required to demonstrate that they had considered other options.

What I think is imperative is a new form of injunctive relief, which is not available to the claimants in this case, and which would allow the High Court to mandate employers to impose a 90-day consultation period. I think that that would address some of the problems, but, again, it could go into an ACAS code of practice. We do not need new laws; we need to turn the screw on exploitative employers by hitting them with penalties that will stop them doing this in the first place. We can talk in the language of emotion and recrimination—

[Madam Deputy Speaker]

Order.

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[Ian Lavery (Wansbeck) (Lab)]

This has been a rather strange debate so far. I am a bit discombobulated by a number of things. I want to place on the record my sincere gratitude to the RMT and Nautilus International for their fantastic work in such a short space of time on this unbelievably poor situation.

The Secretary of State stood there and said that this is not about politics. Of course it is about politics. Everything in this place is about politics, hence the name “politicians”—it’s a giveaway. The fact that 800 hard-working people got their notice in the way they did last week is an absolute outrage, an embarrassment, a disgrace—call it what you want.

The hon. Member for Dover (Mrs Elphicke) should not really get mixed up with people who are angry at losing their jobs, and she should not suggest that somebody who has lost their job is a hard-left militant. If I lost my job, I would be desperately disappointed. If I lost my job in the fashion that these individuals did, I would be more than angry—I would be incandescent with rage. She should not get mixed up with people who got up in the morning, kissed their partner and then, when they got to work, were told that an announcement was going to be made that day. These are ordinary people. These are 800 hard-working individuals with families, mortgages, cars and all the rest of it, who carried this country through the pandemic. To criticise them for being hard-left militants because they are angry about losing their job is distasteful, to say the least. [Interruption.]

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order.

[Ian Lavery]

The reality is that these people were absolutely right to say what they did at that moment in time. They got to the workplace and were told that there was going to be a Zoom call. And then the chief executive of P&O Ferries was saying how hard up the company is and that that was why they were getting their notice that day, even though they did not realise that they were going to get their notice. The right hon. Member for North Thanet (Sir Roger Gale) said that the chief executive was embarrassed that he had to do that and that this is not really about him but about DP World. Come off it! Let’s be honest. This was a commercial decision and DP World and P&O Ferries are awash with finance. DP World paid out £270 million in dividends last year. It even sponsored a golf competition for £147 million. What on earth? What sort of golf competition is that? At the same time, there is a £145 million black hole in its pensions. It would rather support and sponsor golf competitions than pay money into the pension schemes of hard-working people.

We have to get this right. The Government pride themselves on being a patriotic party. There is nothing more patriotic than looking after the people of this country in the way they should be looked after.

International Travel

Baroness Winterton of Doncaster Excerpts

Tuesday 15th March 2022 Commons Chamber

[The Secretary of State for Transport (Grant Shapps)]

With your permission, Madam Deputy Speaker, I would like to make a statement about international travel.

It is almost two years to the day since the country first went into lockdown—two years in which we have fought an exceptionally difficult and unpredictable pandemic, two years of unprecedented restrictions on mobility and two years that have had a drastic impact on travel and on the industry. However, we have now reached an important milestone in our journey back to pre-pandemic normality. After getting rid of testing requirements for eligible vaccinated passengers a few weeks ago, I am pleased to confirm that we are once again leading the way by removing all the remaining covid measures affecting international travel into the UK.

That means we are the first major economy to get back to the kind of restriction-free travel we all enjoyed before covid. Whether for reuniting with friends and family, holidays or business trips, from 4 am on Friday 18 March—this Friday—there will be no testing or quarantine requirements for any passengers arriving into the UK, regardless of their vaccination status, and we will go further. I have heard the calls from passengers, airlines and Members across the House that the passenger locator form is a burden that has simply outlived its usefulness, so I am delighted to confirm that, from Friday, we will be removing the passenger locator form for all passengers. No more quarantine, no more tests and no more forms—international travel is back.

It will be the first time in two years that we can enable frictionless journeys for passengers travelling to the UK, and the remaining international travel legislation will therefore be revoked this Friday—18 March—two months earlier than the original expiry date of 16 May. The devolved Administrations have confirmed that they will align on the removal of these measures, so this change will be UK-wide. [Interruption.] I hear the hon. Member for Wythenshawe and Sale East (Mike Kane) chuntering away from a sedentary position. I will come to the Opposition policy, which was both to have further restrictions and then to lift restrictions—often simultaneously—depending on which Member on the Front Bench we listened to.

Today’s announcement is another vital step in our strategy set out by the Prime Minister last month for Britain to live with covid-19 and to manage an endemic virus. Thanks to the success of our vaccine and booster programmes in building population-wide immunity—further boosters are on the way for the most vulnerable this spring—we are in the strongest possible position to lift covid travel regulations without compromising public health.

We must of course remain vigilant against possible future variants, but thanks to the robust protective shield we have built, we can avoid simply reverting to the same restrictions we have used in the past. Even if another variant of concern emerges, next time we will react differently. We have learned a lot during this pandemic, and we will use that experience to respond in more measured ways and more flexible ways. For example, while quarantine hotels were appropriate for red-list arrivals at an earlier stage of the pandemic, we are now standing down the remaining capacity. Our default approach in future will be to take the least stringent possible measures, avoiding border restrictions to minimise impacts on travel. So we will maintain a range of contingency measures in reserve, tailoring our response to the situation. Our first recourse will be to public health guidance, and guidance to ports, airports and operators on how passengers and staff can stay safe and protect others, and we will avoid stricter restrictions wherever we possibly can.

Although we are dropping all testing and quarantine requirements, our advice to eligible adults who have not been vaccinated stays the same: “If you’ve not got jabbed, then please get your vaccinations. If you’ve had two jabs, please get a booster. It will boost and protect your health, it will protect vulnerable people around you and it will smooth travel to other countries.” It is important to say that vaccination status may continue to be required in other countries to make journeys seamless. Passengers should continue to check travel advice on the Foreign, Commonwealth and Development Office website, before they book and travel, to see what restrictions may still be in place in the countries people are visiting.

As we better deal with covid-19 at home, we will continue to make our leading contribution to tackling the disease abroad. We are sending 100 million further doses of vaccines to other countries by this summer. More than 2.6 billion doses of the Oxford-AstraZeneca vaccine have now been supplied to countries around the world on a non-profit basis, almost two thirds of which have gone to low and lower middle-income nations. We are working with key international partners to establish common rules and common contingency measures, reflecting what we have learned from this pandemic, to use in the future.

While all of these measures have been necessary, I do not underestimate for one second just how hard travel restrictions have been. They have been difficult for passengers, and damaging for travel and tourism in particular. Now that we have lifted the final covid measures on inbound flights, the industry will play a vital role in helping build back better from the pandemic. Soon we will publish our strategic framework for aviation, supporting the sector and the jobs that rely on it, and as part of that we will be considering the workforce, skills, connectivity and of course the crucial mission to deliver our net-zero commitments. I will set out more details about the strategic framework in due course.

We promised that we would keep draconian and costly covid measures in place for not a day longer than was absolutely necessary. Now we stand as one of the most vaccinated countries in the world, and we are also the first major economy to travel freely once again without restrictions. The UK has achieved many hard-won gains over the past two years thanks to the endurance and resolve of the public. Now we are seeing the long-awaited rewards for that patience and determination. The removal of all remaining travel measures this Friday will mean passengers can book trips with confidence, businesses can plan with greater certainty and Britain can continue to bounce back from the pandemic, as we learn to live with covid. I commend this statement to the House.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the shadow Secretary of State.

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[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the Chair of the Transport Committee, Huw Merriman.

[Huw Merriman (Bexhill and Battle) (Con)]

Thank you, Madam Deputy Speaker. I was beginning to wonder which statement I had walked in on. Let us return to the theme of international travel, not least because thousands of people have worked in that industry over the past two years and have suffered greatly. It would be respectful of this place to focus on them, rather than on some of the wider issues that have just been brought up.

I warmly welcome the Secretary of State’s announcement. Over the past two years I know that he has battled hard to support this sector. These are the last barriers to be removed, and I hope the industry will now be ready for lift off. Border Force resources will be required once capacity increases in the summer. Will he do everything in his power, working with the Home Secretary, to ensure that we have everybody we need at the airports? I used the airport at the weekend. Border Force was fantastic and really efficient, but as numbers upscale, so must it upscale.

[Grant Shapps]

I absolutely agree with my hon. Friend. Ensuring that Border Force and its resources are in the right place will be important, especially when our airports get busier again. I will certainly undertake to speak to my right hon. Friend the Home Secretary about those provisions. It might interest the House to know that with e-gates, not having to check a separate database for the passenger locator form—that was automatically carried out by e-gates, using both software and hardware—saves up to six seconds per passenger coming through. That should also help to relieve some of the queueing.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the SNP spokesperson, Gavin Newlands.

[Gavin Newlands (Paisley and Renfrewshire North) (SNP)]

I thank the Secretary of State for advance sight of his statement. It has become increasingly clear that the much vaunted four-nations approach often stems from situations where the devolved Governments are left with little choice, given the nature of the devolution funding settlement. Whether for furlough, community testing, or the various travel arrangements, when the devolved Governments perhaps took a different view, at least with the timing of such decisions, no public money would be made available for a different public health approach. It is not quite a “do as I say” approach; it is more a “do as we will fund” approach. Borrowed funds are obviously not available to the devolved Administrations, and as the Secretary of State alluded, the Welsh Government have said they are extremely disappointed at the dropping of testing requirements. The Scottish Government have said that they followed the UK Government to avoid the harm to tourism caused by non-alignment. Is this another example of the UK Government making a decision, and strong-arming the devolved Administrations into following them to avoid economic disadvantage?

Despite the unease that some members of society will have following these announcements, particularly given the rather nebulous commitment to continued surveillance, this is welcome news for the aviation and travel sectors, which come out of the pandemic in much poorer, smaller and less competitive shape than they entered it. That is largely a result of the extremely poor support given to the sector, in which the UK stood out among top aviation markets for its paucity of support.

The future is far from certain with events in Ukraine and covid potentially causing disruption as well as the cost of living, as has been alluded to. So I would like the Government to commit to being a bit more fleet of foot on aviation support should the need arise. Indeed, when will the strategic aviation review be published?

The UK Government have said that the UK Health Security Agency will continue to monitor variants of concern, so, further to the concerns outlined by the hon. Member for Sheffield, Heeley (Louise Haigh), will the Secretary of State explain what measures will be part of that continued monitoring, how long it will operate for and how it will be funded? Lastly, what consideration at all did the Secretary of State give to the position of devolved Governments in reaching the decision that he has announced?

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[Grant Shapps]

I thank my hon. Friend for his comments. I do not want to disappoint him or his wife. It is incoming traffic that will have the reduction in bureaucracy. On outgoing, we still encourage people to check with the FCDO. As I pointed out a couple of times, most other countries still have some restrictions. But is he right about that electric aircraft, which is a Rolls-Royce project—the world’s fastest flying electric aircraft being produced right here in the UK? He is. ZeroAvia is producing the world’s first hydrogen aircraft, which is now on its second version, a larger 20-seat aircraft. There is a lot of innovation, backed by £180 million, to assist all this decarbonisation of aviation. It is very exciting and it leads to a very strong future for British aviation.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I thank the Secretary of State for his statement.

International Women’s Day

Baroness Winterton of Doncaster Excerpts

Thursday 10th March 2022 Commons Chamber

[Several hon. Members rose—]

[Madam Deputy Speaker (Dame Rosie Winterton)]

Hon. Members will see that there are a good number of people wishing to speak in today’s debate. I do not want to impose a time limit, so my advice would be to speak for within six to seven minutes. That way, we will get everybody in.

Russia’s Grand Strategy

Baroness Winterton of Doncaster Excerpts

Thursday 6th January 2022 Commons Chamber

[Several hon. Members rose—]

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. We are not doing very well on the eight to nine minutes, so I am afraid I will have to put on a time limit of eight minutes—which is quite a long time.

Rail Investment and Integrated Rail Plan

Baroness Winterton of Doncaster Excerpts

Wednesday 8th December 2021 Commons Chamber

[Several hon. Members rose—]

[Madam Deputy Speaker (Dame Rosie Winterton)]

Before I call the Secretary of State, I note that clearly very many colleagues want to contribute to this debate. There will be a time limit from the beginning, and it is likely to be four minutes, but I will confirm that after the Secretary of State has spoken.

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[Several hon. Members rose—]

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. After the next speaker, there will be a four-minute time limit.

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[Madam Deputy Speaker (Dame Rosie Winterton)]

I am of the strong opinion that the SNP spokesperson is coming to a conclusion imminently.

[Gavin Newlands]

Thank you, Madam Deputy Speaker. I have a Front-Bench role here, but I have only four lines left, so if the right hon. Member for Knowsley (Sir George Howarth) had let me finish, I would have taken up less time.

The UK’s plans, in contrast, leave much of the north of England stuck with those 19th-century services and infrastructure. It is time for the UK to learn from elsewhere, from Scotland, from Denmark—from anywhere, frankly, because anywhere else would have a rail policy that lasts longer than a Downing Street Christmas party. Other countries are joining up and truly are levelling up, but the UK Government continue to ensure that for huge swathes of England, the only way is south.

[Mr Mark Harper (Forest of Dean) (Con)]

On a point of order, Madam Deputy Speaker. I understand that the Prime Minister’s official spokesman has now confirmed that a Downing Street press conference hosted by the Prime Minister will take place at 6 pm. As of course I am sure the Government will want to ensure that this House hears from a Government Minister no later than the time of that press conference, may I ask whether Mr Speaker has received a request from the Government for a statement to take place in this House no later than 6 pm, to enable the Government to set out any proposals that are coming forward and to allow Members of this House to ask important questions on behalf of those we represent here?

[Madam Deputy Speaker]

I thank the right hon. Gentleman for that point of order. As I understand it, we have not had notification of a statement as yet, but I will ensure that that is confirmed and, if there is anything further that I need to add, I will do so. I call Andrew Jones to speak, with a four-minute time limit.

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[Several hon. Members rose—]

[Madam Deputy Speaker (Dame Rosie Winterton)]

I know it is tempting to take interventions, but I would be grateful if colleagues could still stick to the four minutes, otherwise time will be taken from others.

Integrated Rail Plan: North and Midlands

Baroness Winterton of Doncaster Excerpts

Thursday 18th November 2021 Commons Chamber

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. I want to try to get everybody in, so let us have brief questions and briefer answers.

[Ben Bradley (Mansfield) (Con)]

I thank my right hon. Friend for this statement, as there is a lot in the plan to welcome in Nottinghamshire, not least the opportunity to build a new station at Toton, where we can create thousands of jobs. Will he confirm for my Mansfield constituents that there is good news in the plan on the Maid Marian line and Robin Hood line, which can help them to access those jobs at Toton?

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[Grant Shapps]

I was wondering how the Isle of Wight might benefit from HS2. Of course it will when my hon. Friend’s constituents cross to the mainland and want to travel north. With regard to Birmingham to Crewe, it has already been legislated for, and it received support from across the House. I do not think that we want to spend too much time going back into an argument about that on a day when we are looking at joining-up plans for the north and the midlands, much as I could be enticed.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I thank the Secretary of State for his statement. I have a quick reminder: by and large, the idea is to ask one question as opposed to three in one.

International Travel

Baroness Winterton of Doncaster Excerpts

Thursday 8th July 2021 Commons Chamber

[Grant Shapps]

My right hon. Friend is absolutely right to mention the case of, for example, a business traveller who might go from A to B to C. One of the things that is little noticed is that a test is up to day 2—it is not a day 2 test per se. It might be helpful, though, if I were to write to him in more detail about the application and how that would work under this new system with regard to, for example, somebody travelling for business to many different places.

Finally, I am pleased to tell him that on the gov.uk website, the methodology for the Joint Biosecurity Centre is already set out. It does include subsections of a number of different criteria that apply. I often hear people say, “X country has fewer cases than we do, so why aren’t they on the green list?” The answer is probably that they are not sequencing their genome, they are not uploading it to the GISAID internationally recognised format, and perhaps they are not vaccinating people at quite the rate that we have. There are many different factors, but they are all set out by the JBC.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I thank the Secretary of State for his statement, and I suspend the House for a few minutes to make arrangements for the next business.

Britain’s Railways

Baroness Winterton of Doncaster Excerpts

Thursday 20th May 2021 Commons Chamber

[Grant Shapps]

Well, there is a challenge. As I said, the strange thing about the May 2018 timetable change is that it attempted to make more paths available in order to use the track that we have better, but the problem was that no one was in charge, and we know what happened. The great thing about Great British Railways looking after all these different elements is that it will be able to use the track more intelligently. I do not know, but I very much hope that one day that might lead to a train direct to Bolton.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call Angela Crawley. Not here, so I call Martin Vickers.

[Martin Vickers (Cleethorpes) (Con) [V]]

Unlike Labour Members, I welcome the Secretary of State’s focus on what works rather than just on ownership, but we should not lose sight of the fact that competition is a spur to improved services. Open access operators have provided services to towns that were not included in franchises. Can my right hon. Friend assure me that these services will continue? Paragraph 25 of the White Paper states:

“New open access services will also be explored where spare capacity exists.”

Can we be assured that the default position will be to do everything possible to ensure that we do not reduce existing services and that we extend and improve services? As chairman of the all-party rail group, I can tell my right hon. Friend that an invitation to address the group is already winging its way to him, and I hope he will be able to do so in the next few weeks.

[Grant Shapps]

Yes, absolutely—open access is something we really think is an important part of the structure. It provides the competition. It keeps everybody on their toes. These are often extremely popular services. As my hon. Friend rightly points out, we absolutely back them in paragraph 25 of the White Paper. Having visited the National Rail Museum in York on Tuesday this week, I cannot wait to bring my stories of looking round that museum to his group.

[Madam Deputy Speaker]

Angela Crawley appears still not to be here, so we will go to Yvette Cooper.

[Yvette Cooper (Normanton, Pontefract and Castleford) (Lab) [V]]

The current system has been failing my constituency for far too long, so I urge the Secretary of State to make sure that this plan improves things and is a step forward. The five towns are less than 20 miles from the centre of Leeds. If we were that close to the centre of London, we would have many trains an hour into the city, yet Normanton has only one train an hour into Leeds; Pontefract, Castleford and Knottingley are all underserved; and we need more trains to Sheffield, York and Hull. I have met Transport Ministers repeatedly on this, so will the Transport Secretary now guarantee that this new plan will mean more local trains for the five towns?

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[Grant Shapps]

It is a pleasure to respond, on this last question, to somebody who has actually worked on the railways and understands these things. I feel for his franchise, because it has to deal with him and he will not take no for an answer—and quite right, too. He points out several things about this reform that are really important. The franchise boundaries, as he rightly describes them, cause too much disruption and fragmentation—that is the key thing that will end with Great British Railways bringing it all together and finally listening to the representatives of the people. I believe and have, I hope, strongly indicated through things such as the Beeching reversal fund that Members of Parliament in this place have an absolute right and duty to be involved in the way that services develop in their areas. I know that my hon. Friend and other Members throughout the House will appreciate that Great British Railways will be more responsive to them, as the rightful representatives of their constituents.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I thank the Secretary of State for making the statement and suspend the House for three minutes to make arrangements for the next business.

Transport for the North: Funding

Baroness Winterton of Doncaster Excerpts

Wednesday 17th March 2021 Commons Chamber

[Madam Deputy Speaker (Dame Rosie Winterton)]

That is not really a point of order, but it is up to the Member who has the Adjournment debate to take a reasonable amount of time, and I have to say that I have seen Adjournment debates in which the Member in charge has taken considerably longer than the right hon. Lady. I think the Minister does have adequate time to reply.

[Andrew Stephenson]

I will always defer to your guidance, Madam Deputy Speaker. For the record, I was waiting behind the Speaker’s Chair for at least five minutes, but there was a Minister at the Dispatch Box and, due to social distancing, it would have been inappropriate for me to come into the Chamber and on to the Front Bench while the previous Minister was here.

At Prime Minister’s questions on 24 February, the right hon. Lady said:

“Is the 40% cut to Transport for the North’s budget part of the Prime Minister’s plans for levelling up the north?”

In response, the Prime Minister said:

“There has been no such cut, and we intend to invest massively in Northern Powerhouse Rail, and in railways in the north and across the entire country.”—[Official Report, 24 February 2021; Vol. 689, c. 911.]

Transport for the North became a statutory body in April 2018. I was proud to serve as a Government Whip on the statutory instrument Committee that oversaw the process at the time.

Let us first look at the budget that has been available to Transport for the North since it was established. Transport for the North has had a core funding grant of £10 million per year since it was established as a statutory body. That settlement has been used to support core operations, as well as to underpin Transport for the North’s medium-term financial strategy through the maintenance of reserves. The Department and Transport for the North have agreed a minimum reserve of £2 million.

However, this financial year, partly as a consequence of the coronavirus pandemic, Transport for the North underspent its core grant and built up significant reserves. According to its own forecast, its reserves would have grown to an excessive £9.5 million if its funding had remained unchanged this year. Ministers therefore took the decision to adjust Transport for the North’s core settlement this year, allocating £7 million for the current financial year and £6 million for the next. That is a prudent and sensible use of taxpayers’ money that ensures that Transport for the North still has enough to continue to deliver on its statutory functions while making sure that it does not continue to build up unnecessarily large reserves.

To come to the crux of the argument, it is important to note that the core funding grant is just one of several funding streams that make up Transport for the North’s budget. During 2018-19—its first financial year as a statutory body—some £388,000 was available for the Rail North partnership grant. That has risen year on year, with £680,000 available this financial year and a further rise to more than £750,000 anticipated for the next financial.

Likewise, when Transport for the North was established as a statutory body, £15 million was made available for Northern Powerhouse Rail in 2018-19. Again, that amount has risen year on year, with £59 million available this year, rising to £67 million in the next financial year, subject to the usual agreement of programme activity with the Department, as co-client.

In the 2015 spending review, Transport for the North was allocated up to £150 million to support its integrated and smart travel programme. It has utilised only £24 million in the past five years to enable the roll-out of smart ticketing throughout the north. Additionally, it incurred development, business-case and other project costs of around £10 million, but was unable to produce a business case for its ambitious multi-modal projects that was acceptable to all transport operators in the north.

The multi-year funding for Transport for the North’s integrated and smart travel programme was always due to expire at the end of this financial year. We are considering how best to deliver more effectively the roll-out of smart ticketing to improve passenger services throughout the region.

What all that amounts to is that the Prime Minister was right in his assertion that there has been “no such cut”. Taking into account all the funding streams available to Transport for the North, its budget has not been reduced by 40%. To that end, impartial website Fullfact published a piece on 3 March, in reference to the 40% reduction quoted by the right hon. Lady. It stated:

“This much is being removed from Transport for the North’s core funding, though not from its total funding. It will be able to access some extra funding from other programmes to supplement its core funding.”

I am happy to provide even more clarity on those figures. First, the 40% reduction in Transport for the North’s core funding will not take place until the next financial year. Secondly, looking at its core funding for 2021-22, the Department has agreed that Transport for the North can charge £2.5 million of the costs that previously came from its core budget to the Northern Powerhouse Rail programme, significantly reducing the impact of the reduction in its core expenditure.

The right hon Lady again asked the Prime Minister, in a written question on 1 March, about Transport for the North’s funding settlement, and the Prime Minister responded promptly on 4 March that Transport for the North’s overall funding means that it will have access to over £70 million this coming financial year alone.

For the avoidance of doubt, let me quote what the Prime Minister said in response to the right hon. Lady:

“A reply will be sent in due course. Transport for the North’s overall funding means they will have access to over £70 million this coming financial year alone. We are building on the £29 billion we have invested in transport in the north since 2010 with: the Integrated Rail Plan bringing together HS2, Northern Powerhouse Rail, and our multi-billion-pound rail investment programme; our £5 billion investment into local bus and cycle links, including in the North; our £4.8 billion Levelling Up Fund which will benefit communities across the region; and our £4.2 billion intra-city transport fund, benefitting bus, train, and tram services across our 8 largest city regions. And at Budget, we reaffirmed our commitment to northern infrastructure, with: the launch of the UK Infrastructure Bank, headquartered in Leeds; a new government economic campus in Darlington; investment in offshore wind port infrastructure in Teesside and Humberside; and over £450 million in Towns Fund Deals for towns across the north—investing in infrastructure and culture from Middlesbrough to Bolton, to Rochdale and Scunthorpe.”

I think that more than clarifies and settles the matter of the adjustments to Transport for the North’s funding. The settlement is fair, reasonable and appropriate, and indeed Transport for the North will continue to receive more funding than any other sub-national transport body.

Lately, the subject of Transport for the North’s funding has too often been conflated with investment in northern transport and the Government’s commitment to levelling up more generally, and again I would like to set the record straight. To be clear, Transport for the North is not, and has never been, a delivery body. It is a strategic body, there to provide advice to the Government—something that it is perfectly able to do within its current funding settlement. Therefore, a reduction in Transport for the North’s core funding will not impact on the delivery of the vital infrastructure projects that the north needs. The Government are wholly committed to levelling up all parts of the country, including the north. Therefore, £29 billion has been invested across the north since 2010. There is still a long way to go, but we are on the right track.

I do not have time tonight to list the many schemes and investments that we are progressing across the north, but I will mention a few. The dualling of the A66 has seen its construction time scale halved by the Government’s Project Speed. The planned reopening of the Northumberland line to passenger services will better connect our communities in the north-east. We are embracing our ambition of a zero-carbon future with a planned hydrogen transport hub in the Tees Valley.

Last July, my right hon. Friend the Secretary of State announced an initial £589 million, with more to follow, for the trans-Pennine route upgrade, delivering much-needed rail capacity and reliability between Leeds and Manchester. In addition, I am pleased that the right hon. Lady shares my joy at the new freeport being established on the Humber, alongside two other sites in the north, at Liverpool and Teesside. Furthermore, I am surprised she did not mention that the work on the improvement scheme for the A63 Castle Street in Hull is under way. She mentioned the incredibly beautiful bridge, to which many of her colleagues have paid tribute—the Murdoch’s Connection bridge—that is providing safe and convenient crossings for pedestrians and cyclists. The very fact that we are getting on with these schemes underlines our commitment to levelling up.

I could go on, but the point is that changing Transport for the North’s core funding settlement does not alter the Government’s commitment to the north or to levelling up. Our ambition is to deliver world-class infrastructure in the region and unlock the potential of the northern powerhouse. Opposition Members will continue, I am sure, to play games and try to score points, but this Government will not be distracted from building back better and delivering record investment to the region.

Question put and agreed to.

National Bus Strategy: England

Baroness Winterton of Doncaster Excerpts

Monday 15th March 2021 Commons Chamber

[Grant Shapps]

Yes I will. I have no doubt that my hon. Friend will fight for his constituents and his area. By hooking up with the local authority and working with it, we will have a very good look at the investment strategy that it puts together to ensure that he enjoys much better services in the future than his constituents have in the past.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I thank the Secretary of State for his statement. We will have a short suspension to make arrangements for the next business.