The Minister of State, Department for Transport (Mrs Theresa Villiers)
Like others, I congratulate my hon. Friend the Member for Loughborough (Nicky Morgan) on securing the debate and on an excellent speech. I welcome the strong interest shown in the debate by the presence of so many hon. Members from up and down the length of the route.
My hon. Friend put the case for electrification of the midland main line with cogency and clarity and I pay tribute to the campaign that she, so many of the groups she mentioned and so many of the Members in the Chamber have been leading on that important issue. I welcome the interest of the Derby Telegraph, a paper with which I am very familiar—for all sorts of reasons. I have received many representations from Members who are attending the debate and from other groups and colleagues. I particularly mention the representations received by the Parliamentary Secretary to the Treasury, my right hon. Friend the Member for Derbyshire Dales (Mr McLoughlin).
Anna Soubry (Broxtowe) (Con)
Does my right hon. Friend agree that we are seeing a complete outbreak of cross-party support for the project? She identifies Members representing cities and towns—for example, Beeston and Attenborough in my constituency—all of which will benefit if the scheme goes ahead. I do not know whether she has seen a paper written by Jim Bamford from Nottinghamshire county council—my hon. Friend the Member for Loughborough (Nicky Morgan) referred to him. He sets out the excellent economic case for electrification and the improvement of the line not just for the good people of greater Nottingham but for those throughout the whole of the east midlands right up to south Yorkshire.
Mrs Villiers
My hon. Friend is entirely correct. There is significant cross-party support, and there is a range of interesting research and evidence on the potential benefits of electrification of the midland main line, much of which I have seen directly. As I think the hon. Member for Leicester South (Jonathan Ashworth) mentioned, in February, I met MPs to discuss the proposals, along with the deputy mayor of Leicester. This debate provides a welcome opportunity for the House to reflect on an important subject for the regions concerned.
Chris Williamson (Derby North) (Lab)
I, too, congratulate the hon. Member for Loughborough (Nicky Morgan) on securing the debate. I think that the case for the electrification and upgrade of the midland main line is unanswerable, and I hope that we will hear some reassuring words from the Minister this evening. Does she agree that it is absolutely essential that the Government do everything in their power to ensure that the trains that run on the midland main line—and indeed on every railway line in the country—are, wherever possible, built in British factories, and preferably in the Derby factory of Bombardier?
Mrs Villiers
The hon. Gentleman knows that I have a very high regard for the Bombardier operation in Derby, and he will appreciate that we are bound by European rules on the procurement of rolling stock.
The Government appreciate the economic benefits that investment in transport can bring in general. That is why we have given priority to investment in our rail network, even when budgets are limited by the pressing need to deal with the deficit. As well as going ahead with high-speed rail, we have embarked on a major programme of rail improvements on a scale larger than anything attempted since the Victorian era. That programme plays a significant role in two of our important priorities: promoting economic growth and cutting carbon. It is also vital that we get the cost of running the railways down, so that we can respond to concerns about fares.
Where there is a strong business case, and subject to affordability, the Government support the progressive electrification of the rail network as a way to reduce the cost of running the railways, boost the economy, increase passenger comfort, and reduce carbon. As we have heard from my hon. Friend the Member for Loughborough, electric trains cost less in fuel and maintenance than their diesel equivalents; they are quieter; they are lighter, which saves on wear and tear to the track; and they emit less carbon dioxide. That is why the Government have already committed to an extensive programme of rail electrification, which includes the Great Western main line from London to Oxford, Newbury, Bristol and Cardiff, and lines in the north-west, including from Liverpool to Manchester and from Blackpool to Manchester. Indeed, Mr Deputy Speaker, your constituency is set to benefit from the changes. Subject to confirmation of the business case, the line from Manchester across the Pennines to Leeds and York is also due to be electrified.
As my hon. Friend the Member for Loughborough and others have rightly emphasised, the midland main line plays a major role in supporting the economies of the east midlands and south Yorkshire. Most inter-city services on the line are provided by modern, high-performance, diesel Meridian trains. The line also benefits from the recent investment in new stations at Corby and East Midlands Parkway, and from the £800 million transformation of St Pancras. The Government have committed to further improvements by 2014. Network Rail is due to complete a £69 million investment to deliver an eight-minute improvement in journey times for passengers between London and Sheffield. In the longer term, the economies of the east midlands and south Yorkshire will benefit from the second phase of High Speed 2, with journey times slashed and rail capacity dramatically increased.
We recognise that there is a good case, on economic and financial grounds, for further investment in the midland main line over and above what we are already committed to. The scale of what can be delivered depends on what is affordable, and on a careful and fair assessment of competing priorities elsewhere on the rail network. The report commissioned by East Midlands Councils and South Yorkshire passenger transport executive entitled “The Case for Upgrading and Electrifying the Midland Main Line” is very impressive. It highlights significant potential economic, environmental and financial benefits from electrification and the other upgrades to which my hon. Friend the Member for Loughborough referred.
The Government recognise that the electrification of the midland main line could help spread the benefits of HS2, because it would enable through-running of services between the new high-speed network and the midland main line. This is something that we will consider as we prepare our response to the advice of HS2 Ltd on phase 2 of the project to complete the Y network to Manchester and Leeds. This potential benefit and the others mentioned today, including the important points made by my hon. Friend about freight and the potential benefits to freight from an electrified midland main line, will all be taken into account in our decisions on the forthcoming HLOS statement.
As my hon. Friend the Member for Loughborough set out, electrification of the midland main line and various other upgrades to the line are included in Network Rail’s initial industry plan for possible delivery in the period between 2014 and 2019. This document and the priorities that it sets out will play an important role in forthcoming decisions on which projects can be funded in the CP5 rail period to 2019. I welcome the decision by the rail industry to prioritise electrification of the midland main line in the IIP. The Government are currently considering how much funding will be available in total for rail investment in the five-year period up to 2019 and how it should be allocated. We will announce our decisions by July.
Although the business case for midland main line electrification does indeed look impressive, as I have acknowledged at the Dispatch Box before now, there can be no doubt that the project would be complex and challenging, and it would be expensive to deliver. Network Rail has estimated the capital cost of electrification alone to be just over £530 million, not including the other improvements mentioned in the debate. Major engineering work would be required. Just to make room for the overhead wires, more than 50 bridges would have to be rebuilt.
So, alongside midland main line electrification and upgrades, we will need to assess the case for improvements on other routes to determine which projects are given priority. The initial industry plan contains proposals for rail improvements likely to cost about £4.5 billion in total during the CP5 control period. This is on top of £5 billion for projects already committed for the period, so we will need to strike a balance and make choices. Of course we want to fund projects which promote economic growth and improve efficiency, as we believe electrification of the midland main line would do. We also need to ensure that the Government’s finances are not overstretched during difficult times.
Sir Alan Meale
I refer again to the point that I raised earlier—£12.2 billion was spent on the networks, but only £200 million of it went in the east midlands. That is not fair. We demand and we need the extra investment.
Mrs Villiers
I can reassure the hon. Gentleman that we are committed to continuing investment in our rail network. We are committed to a major programme of electrification. The previous Government managed only about 15 or 20 miles of electrification in 20 years, so we are making progress on that. Although I cannot prejudge the outcome of the deliberations, I can assure my hon. Friend, the hon. Member for Mansfield (Sir Alan Meale) and everyone else attending the debate this evening that we recognise the benefits that electrifying and upgrading the midland main line would bring. We are aware of the strength of the business case. We are very much aware of the strength of the support for this important upgrade to the rail network. That is why we are working closely with Network Rail to ensure that we have the most up-to-date information to inform our decisions on the midland main line project and whether we can include it in the HLOS programme for CP5.
Mrs Villiers
It is important to take into account the potential environmental benefits of any project in all areas of government, and I acknowledge that electrification of the midland main line would have a positive impact in reducing carbon emissions. We will take that into account.
The hard work of my hon. Friend the Member for Loughborough, many of the other MPs who are here, the local authorities, the stakeholders and the local newspapers on this issue has given momentum to the campaign to electrify and upgrade the midland main line. I congratulate them all on that. We will continue to listen with care to the views of all who promote this project when we make decisions on which rail projects can be prioritised and afforded in the next railway control period. This debate has provided more useful and valuable input into that decision-making process. I am grateful to all Members who have contributed. I will take very seriously the representations made in this debate and the numerous representations that I and the Department have received on the benefits to be gained environmentally and economically from electrifying and upgrading the midland main line.
Question put and agreed to.