Aviation: Regulatory Burden

Lord Berkeley Excerpts

Tuesday 21st January 2014 Grand Committee

[Lord Berkeley (Lab)]

My Lords, I am very grateful to noble Lords for allowing me to speak briefly in the gap. I am not a pilot, but I was interested to hear three pilots speaking about their experiences. I remember when the noble Viscount was a Minister for air and shipping. He reported to the House one day that he had flown over a tanker that had hit a rock in Milford Haven and had saved the day by finding a Chinese takeaway cook who could translate between English, which everyone was using, and Chinese for the tug outside. I did not know that he was flying his own plane. That is terribly impressive.

My interest in this is that I go to the Isles of Scilly quite often. In the winter, the only transport is a small plane that usually goes from St Mary’s to a grass runway at Land’s End, except when it is waterlogged, which it has been for the past month. Costs are high—£70 to £80 for a single fare—so it difficult for people who live on the islands, and I am grateful to the Minister for agreeing to have a meeting later this week with some representatives where I hope we can discuss this. I have tabled a few Questions on this. I was very pleased to hear that Bristows will do the medevac service—evacuation to the mainland of people who need urgent medical treatment—after the RAF hands over emergency rescue. That is really good news, and I am grateful for that.

Less good is the problem of taking blood samples to the mainland. I asked a Question more than a year ago about whether the Government would facilitate granting a licence for Skybus to carry these samples to the mainland for testing. The answer came back that they would when an application was received, which was fair. A year later, it has still not happened, so I tabled a Question asking whether an application had been received and, if so, what was the answer. I am not looking for an answer from the Minister today. My question is more fundamental: why do you need a licence at all to carry blood samples between the Isles of Scilly and the mainland, or anywhere else, for testing in a hospital? Why does doing so need a licence? They are not going to blow up or anything. You can put them in a sealed bag and they would be quite happy, but there we are.

Finally, I went to the Scillies just before the new year; I had a bit of a difficult journey, so I did a blog on it which produced quite a few responses, including one from the chairman of the Isles of Scilly Steamship Company that runs the service inviting me to meet him, which I did. We did not necessarily agree on customer service, but what he told me about costs was very interesting. He said that a third of the cost of the short, very frequent service, which does not make a big profit, went towards regulation, a third fuel and a third airport charges. That probably justifies the charges, but do they have to be so high? A third of the cost being regulatory seems an awful lot. As for airport charges, Newquay is renowned for having high charges because it likes to call itself an international airport, so it has to cope with the odd international flight with enormous numbers of staff, I believe, for security.

I hope that the Government and the CAA can look at the total charges because if that is correct—and I have no reason to suppose that it is not—an £80 single fare to get home to the Scillies if you live there or to go to the hospital or visit friends seems a bit high, and that is the only way you can get there in winter. If the regulatory cost could come down a little, it would be a great help.

--- Later in debate ---

[The Minister of State, Department for Transport (Baroness Kramer) (LD)]

My Lords, I am delighted to address this Question for Short Debate which my noble friend Lord Rotherwick has introduced on reducing the regulatory burdens on general aviation. I am grateful to the noble Lord for securing the opportunity for this debate to take place. I am aware of his interest and great expertise which far exceeds mine, so I am delighted that he and other noble Lords with experience have spoken in this debate. This is a useful opportunity to update noble Lords on the work which is currently taking place and to address some of the key issues that have been raised today.

Noble Lords may be surprised by the number of activities covered by the general aviation industry, including maintenance and pilot training, gliding and ballooning, as well as the operation of small aircraft for leisure or business purposes. The sector covers a wide spectrum of aircraft types and activities, ranging from paragliders and microlights to business jets. There are around 20,000 civilian aircraft registered in the UK, of which 95% are engaged in what can be described as general aviation activities.

The value of the GA sector and its contribution to the UK economy should not be underestimated. The 2006 strategic review of general aviation, carried out by the CAA, estimated the UK’s GA industry to be worth approximately £1.4 billion in 2005. This highlights the important economic contribution which is made by the GA sector. The sector currently supports around 50,000 jobs in the UK and has a strong track record of providing high value-added employment opportunities across a range of areas and supply chains.

I am sure that noble Lords are aware of the Government’s deregulatory red tape challenge because it has been so well addressed in this debate. In 2012, all existing aviation regulations were scrutinised, but at the start of 2013, the Minister without Portfolio, Grant Shapps, proposed that a further red tape challenge should be undertaken, specific to GA issues. I am sure that Grant Shapps and Andrew Haines will appreciate the warm comments by the noble Lord, Lord Rotherwick, on what they have achieved, which were echoed by the noble Earl, Lord Liverpool, the noble Viscount, Lord Goschen, and the noble Lord, Lord Bradshaw.

In this context, I assure the noble Earl, Lord Liverpool, and the noble Viscount, Lord Goschen, who raised the issue, that the red tape challenge is being handled in a most judicious way. The concern that they raised about medicals is an area that will certainly be reviewed by the GA panel to see whether there are more proportionate ways of delivering the process of providing and maintaining licences. However, it will be done only with an understanding of the importance of the robustness and safety required. When the panel reports, Ministers will consider very carefully any recommendations in this area and will discuss them in great detail with the CAA.

The GA red tape challenge received nearly 500 responses —three times as many as any other theme to date. The responses identified many areas where improvements are needed and highlighted the need for a change in the approach to regulating GA. In response to this, a substantial programme of reform has recently been launched with the aim of helping to support a vibrant UK GA sector.

The Civil Aviation Authority, the independent regulator, has recognised the need to create a culture change in its regulation of the GA sector. It has incorporated the findings of the GA red tape challenge into its own internal review to produce a comprehensive GA reform programme. This will support a programme of deregulation and self-regulation for the GA sector, remove complexity, look to deregulate and delegate where possible and, where not, consider how to allow the GA sector to take on more responsibility and accountability for its own safety where possible and appropriate.

As part of that programme, the CAA announced the setting up of the specialist unit—which, again, has been widely praised in this debate—dedicated to GA issues. I can confirm that it will indeed be operational from April this year. This recognises that the GA requires different, less onerous regulation compared with that for commercial air transport and it demonstrates the CAA’s commitment to addressing GA issues. It will provide effective and proportionate regulation which supports and encourages the growth of the GA sector. As others have mentioned, Andrew Haines, the chief executive of the CAA, and his team are very committed to making the unit a success.

I assure noble Lords that the CAA will work closely with the GA community as regulations are developed, providing opportunities for the sector to challenge those regulations when it believes that they are unduly burdensome. For example—to take up a point that has been raised—there will be far greater scrutiny of the CAA’s fees and charges in order to provide greater transparency. On the issue of onerous fees, the CAA is committed to reducing the charges that it places on the industry, and it has agreed to work to reduce fees and charges by 3% in real terms by 2015-16. It must also report on issues such as efficiency.

The noble Lord raised a number of specific issues, most of which have already been explored by the CAA. They include informed consent, which would allow members of the public to pay for flights which are not designed to meet the same requirements and standards as a commercial carrier. However, it must be stressed that the CAA will consider this alongside other initiatives intended to bring proportionate oversight to address the safety risks associated with aviation activities.

The noble Lord, Lord Rotherwick, is right: the CAA is looking at options for delegating certain functions to industry associations, and he named a number of them. They are well placed to deliver regulatory oversight in a manner proportionate to the needs of the sector. However—and he may be slightly disappointed when I say this—the CAA will seek to introduce market access opportunities for suitable qualified entities because it believes that in some areas where there are no existing arrangements, this will help to provide those new and required opportunities.

The CAA welcomes the GA sector’s involvement in agreeing its charging schemes, as I mentioned earlier, and it recognises some of the concerns expressed about the fees and charges. As a result, it is proposing to establish a GA sub-group of its Finance Advisory Committee specifically to take on the issue of fees to ensure that they are proportionate as well as transparent.

Another specific area of concern is the availability of airspace for GA operators. The community often takes the view that this has been reduced as controlled airspace has grown to favour commercial aircraft. Actually, the opposite may often be the reality. For example, between 2010 and March 2012 the total volume of controlled airspace within the UK was reduced by 214 cubic nautical miles. The CAA is aware of these concerns and ensures that its airspace change process is public and that all decisions made are fully explained. A principal benefit envisaged within the future airspace strategy is the potential to capitalise on the improved performance characteristics of modern commercial aircraft, which will allow other airspace users, including GA, to benefit from the airspace volumes released beneath them.

The GA challenge panel is an important element. It is independent and includes representatives from the GA industry. The panel is providing a “critical friend” function to the CAA and will work with the regulator to challenge its GA reform programme, challenging the CAA to be consistent, transparent and innovative in its approach to GA regulation and supporting the CAA as it strives to deliver genuine change in its approach to GA regulation.

The panel is considering projects which have the potential to promote growth within GA and opportunities for further reducing the regulatory burdens on the sector. It is also considering options for simplifying existing European safety requirements, an issue discussed in the debate, and assessing the progress being made to bring about a culture change within the CAA. The challenge panel will report directly to Ministers Grant Shapps, Robert Goodwill and Mark Harper in the Home Office in April, with an interim report due before then in late January. The panel’s existence will be short term, but the role it is performing and the report it will produce will provide a platform for improving the regulation of the GA sector.

An increasing number of the regulations which impact on GA ultimately derive from the European Aviation Safety Agency. The Government and the CAA have been proactive in lobbying for reform and fully support the EASA road map for general aviation, which came about as a result of the GA sector sharing its concerns about the proportionality of its rules. The EASA has recognised that much of its regulation has been overly burdensome and the road map proposes a series of reforms and changes in approach.

We welcome the fact that the European Commission has accepted the UK's recommendation that an evaluation of the application of commercial aviation safety requirements to general aviation should be included in the rolling regulatory fitness and performance programme. We will continue to work with the European Commission to ensure that this evaluation is both rigorous and evidence-based. Recent announcements such as securing the EU’s agreement to allow the UK to continue issuing the instrument meteorological conditions rating for pilots until April 2019 are encouraging and demonstrate EASA’s willingness to reconsider its regulatory policy in relation to GA. The Government also welcome the CAA’s commitment to eliminating gold-plating of EU regulations and Ministers are due to meet with the EASA next week.

On the serious issues concerning the border agency, I say to the noble Lords, Lord Davies of Oldham and Lord Bradshaw, that the GA challenge panel is meeting with the border agency, hopefully next week. I understand that the issues have been raised and that consideration will be given to whether they are onerous or appropriate. There is a mechanism for taking the issues forward.

The noble Lord, Lord Davies, raised the question of airfield planning. Planning issues are always contentious but, luckily, they tend to be local issues.

I shall be meeting the noble Lord, Lord Bradshaw, on the Isles of Scilly and I thank him for giving me a heads up on many of the issues he will wish to address in that meeting. However, there is not time for me to deal with them now.

The noble Viscount, Lord Goschen, asked about innovation. There is innovation grant funding for GA and the DfT is currently working with the GA challenge panel to identify suitable projects.

There is movement on all fronts. I thank all noble Lords who are present. My time is up. I am not sure that I will be able to take the noble Lord’s question.

[Lord Berkeley]

Could I remind the Minister that I am Lord Berkeley, not Lord Bradshaw? I think she got us muddled up.

[Baroness Kramer]

I consider it an insult to neither noble Lord that I might have confused them for a brief moment. I certainly know who they are, and both are remarkable in the area of transport.

Shipping: Passenger Safety

Lord Berkeley Excerpts

Wednesday 15th January 2014 Lords Chamber

Asked by

[Lord Berkeley]

To ask Her Majesty’s Government what assessment they have made of the impact on passenger safety of their application to the Committee on Safe Seas and the Prevention of Pollution from Ships for exemption for certain ships and areas of operation from European safety requirements in order to substitute life rings for life rafts.

[The Minister of State, Department for Transport (Baroness Kramer) (LD)]

My Lords, Her Majesty’s Government require all vessels to carry enough life rafts to meet the risk to those on board in an emergency. The proposal submitted to the Committee on Safe Seas and the Prevention of Pollution from Ships is based on UK regulations for domestic passenger ships and is supported by the department’s formal safety assessment of domestic passenger ships carried out between 2002 and 2004 in response to Lord Justice Clarke’s formal inquiry into the “Marchioness”/“Bowbelle” collision.

[Lord Berkeley (Lab)]

I am grateful to the noble Baroness for that response. My understanding is that this exemption application applies to passenger ships with up to 130 people on them, which, under directive 2009/45, article 4, allows them to go 15 miles from the place of refuge or five miles from the coast in the summer. The idea is to reduce the number of life rafts to the maximum number of passengers—not allowing, of course, for the fact that you cannot always launch life rafts if a ship is heeling—and to replace the rafts removed with life rings. Does the Minister really think that it is a good idea for people who might be wrecked in an accident in the North Sea or off the Hebrides to have to get into a life ring rather than a life raft?

[Baroness Kramer]

My Lords, my understanding is that this exemption is for up to five miles and therefore would not apply in most of the circumstances that the noble Lord has just described. It is for small craft of less than 24 metres which have to be travelling in daylight and in summer only. They are required to have sufficient life rafts for all passengers but additional safety can be provided by buoyancy apparatus.

Railways: High Speed 2

Lord Berkeley Excerpts

Wednesday 18th December 2013 Lords Chamber

[Baroness Kramer]

I thank my noble friend. He is exactly right that the demand for skills would be significant, not only with HS2 but with all the other infrastructure projects that are being launched thanks to the actions of this Government. My noble friend will take some comfort from the fact that the National Skills Academy for Railway Engineering, which was established in 2010 with wide railway industry support, is helping to tackle the current and future skills needs within the industry. It is working closely with HS2 to identify skills gaps and promote railway engineering skills. We obviously have the Tunnelling and Underground Construction Academy, which has played an important role in the Crossrail project; one would assume that it would do so with the super-sewer for London and then HS2. The skills academy is one of the participants, along with BIS and the DfT, with some support also provided by Siemens, in looking at training entry-level employees as well as skilling up others to respond to new technology developments in the industry with initiatives such as the Siemens Rolling Stock Academy.

[Lord Berkeley (Lab)]

My Lords, when the Prime Minister recently visited China, he announced that the Chinese would help us build HS2. Can we expect several thousand Chinese people to flood into this country, and will they be welcomed in the same way that Romanians and Bulgarians apparently will be?

[Baroness Kramer]

My Lords, the discussion was primarily about finance, rather than the range of engineering skills and jobs on which I have just reported. I can assure the noble Lord that the programme that HS2, along with various engineering companies, is taking out is targeted at schools in Britain rather than those overseas. For example, HS2 sent a contingent of 30 people to the skills show in Birmingham to which youngsters came from all over the country. I am confident that a large number of these skills can be achieved in the UK, creating a base for our youngsters to participate not only in HS2 but in a wide range of engineering projects. However, we will always consider financing from overseas.

Dartford River Crossings

Lord Berkeley Excerpts

Thursday 5th December 2013 Grand Committee

[Lord Berkeley (Lab)]

My Lords, I congratulate the noble Lord, Lord Hanningfield, on achieving this debate. It is timely. There is a consultation out on the river crossings. He asked the Minister a question about the end of the year, but he did not say which year. I am sure that we will hear that when the Minister responds.

It is quite clear that there is a traffic problem east of London because of the growth. I met an expert in these things recently who said that the centre of gravity of the population of London was now some five miles east of the City. That surprised me slightly, but maybe the noble Lord, Lord Hanningfield, and his colleagues from Essex will confirm that. I do not know, but industry and business are moving east beyond Canary Wharf, so there is clearly a demand.

My concern, starting with demand and forecasting, is about the way the department does its road forecasts, which I have mentioned before. I put a Question down on it today, not in respect of this debate but generally. The briefing for the debate gives Highways Agency figures for the Essex-Kent traffic from April 2012 to March 2013. It states that,

“the traffic was down one and a half million vehicles”,

from 49 million. That was confirmed by the number of trips and everything.

One has to ask why. Maybe it is to do with the congestion. Why has the traffic gone down? Maybe it is to do with the tolls. I believe that the tolls will be changed quite soon, which is something that we managed to achieve in legislation about a year ago, which is very good. But it is extraordinary that the Highways Agency is still quoted as saying:

“While the amount of traffic using the Dartford Thurrock River Crossing has decreased slightly over the last few years, traffic flows are expected to increase by a fifth over the next 30 years, due to the anticipated development in the Thames Gateway region”.

I could just about believe that if the Department for Transport forecasting team had not been producing forecasts of road traffic growth for the past 20 years which show a spider’s web where the curve goes up and then it levels off. That shows the actual traffic, but the forecast keeps on going up. If the forecast that was done in 1992 or 1993 had been achieved today, we would have 50% more traffic than we actually have.

There is something wrong with the forecasting. I have said that before. Is it because the department likes building roads? This is not an attack on the present Government because the department has been the same for the past 20 years. I hope that some thought has gone into this. We should look at the road and rail element. I believe that this crossing is necessary but it needs a rail element as well. I declare an interest as chairman of the Rail Freight Group, but this is a passenger and freight issue. I would like to cover that in a little more detail.

Page 9 of the consultation document states that,

“the provision of rail freight as part of any new Lower Thames crossing would not address the rail freight capacity issues that are forecast for the area”.

That, I think, is open to challenge. In fact, a very large and welcome development called the Thames Gateway is being built just downstream from where these crossings might be, which is forecast at peak to have something like 40 freight trains a day. The London, Tilbury and Southend line and the route across London can actually carry that amount of traffic, because it is a good line.

It is debatable how much of that traffic would want to go south: it would probably want to go north because it is coming in from the deep sea. However, within that complex, a very large logistics centre is being built—and the first bit is already just opened—which will be doing shorter deliveries and may even want to use traffic from the Channel Tunnel. Noble Lords will know that the volume of Channel Tunnel traffic is pretty low at the moment. However, the industry forecasts suggest that, with the present pretty high charges, in 2043—which is hopefully after these links get built, but perhaps we do not know—there will be something like 50 trains a day through the Channel Tunnel, 25 in each direction, compared with about seven today. If somebody achieves a better diversion from road to rail, it would certainly help reduce the number of trucks on the Dartford crossing. If you stand on a bridge at Ashford and count the number of trucks, you will see that 200 trains a day could be filled. The first reason they are not going by rail is largely price, followed by difficulties in France. In a 20-year timescale, however, we can probably think that that could change.

When I worked for Eurotunnel 25 years ago, we forecast that there would be 40 freight trains a day in each direction when the tunnel opened and probably up to 60 today. The forecasts were miles out for whatever reason, but I am just saying that that is the sort of potential. Therefore, I think there is room for rail freight on this link and luckily there are good existing rail lines on either side which could probably take much of that traffic if it wanted to go either to the big logistic centres—I only mentioned one, but there are several others down there on both sides—or further north. There needs to be a strategic view taken, if you have lots of freight trains in the Channel Tunnel wanting to go up to the Midlands, as to which way they should go around London. Do they go south-about through Redhill, or do they go north-about, possibly by crossing here on the LTS and the Gospel Oak-Barking line, or does somebody want to build a new line from somewhere through Hertfordshire and outer Essex, if I can call it that, with a new crossing which could tie up with one of the mayor’s ideas for airports, or whatever? One could go on having conjectures about this for ever. What I am saying is that, if there were a rail link built in to this crossing, it could connect quite easily with existing routes where there is capacity, and it would help a great deal in getting some of the trucks off the road.

I turn to passengers. The same consultation document says:

“Passenger flow volumes on a cross-river rail route east of London are also likely to be limited”.

The North London line services were limited before Transport for London took them over; they are now incredibly successful. London Overground has grown by leaps and bounds, is very popular and has established many new journeys. Rail transport, as noble Lords will know, has increased pretty dramatically in the south-east, as it has in the rest of the country.

It is hard to conclude that passenger flow volumes are likely to be limited: if there is not a service there at the moment, it is very difficult to judge. How many people driving across the Dartford crossing, paying their toll in their car every day, would use a convenient rail service if there was one? It is a very difficult thing to decide and it would probably take five or 10 years after it opened before it was really possible to know what the right figures were and whether everybody got it right. However, most of these links develop into something highly popular. What this link needs is a good road link and a good rail link, hopefully together, and, in places, capacity for expansion. Whether we should be doing that on HS2 we can debate; it is too late now. Capacity for expansion is important, because we tend not to look at the longer and wider potential for this link—I mentioned the airport, but there may be other things in Kent and in Essex. If the economy of the London area is moving east, who knows what it will be in the future for passengers and freight.

I do not have a view on which of the three options should be used, although I have been told by someone who owns quite a big area of land at Swanscombe, where there is potential for a theme park with several thousand jobs, that it would be a pity if the route went straight through the middle of that land. He has a point, if it is a job creation scheme. On the other hand, one has to look at the options and the costs and everything else.

I hope the Government will look again at the potential for rail—not high-speed rail but local and regional services and freight. It would be remiss not to do it, because it is possible that this link may not get built for 10 years—we look back at opinions expressed five years ago, and in 15 years many things can change—so I look forward to hearing the Minister speak about this and am happy to take it further.

--- Later in debate ---

[Baroness Kramer]

I think a lot of forecasts are as accurate as tosses of the coin. Let us see what we can do about this. Journey time reliability is important, and this is consistently one of the worst performing links in the strategic road network. We think it is going to get better, not worse.

Successive Governments at national and local level have commissioned studies on congestion and possible new river crossings. The most recent report for the department, done in 2009, identified short and medium-term measures to improve traffic flows. It also concluded that a new crossing is needed in the long term and shortlisted potential locations: option A, at the existing Dartford-Thurrock crossing; option B connecting the A2 with the A1089; option C connecting the M2 with the A13 and the M25 between junctions 29 and 30; and a variant of option C connecting the M2 with the A13 and the M25 and additionally widening the A229 between the M2 and the M20. From the start, this coalition Government have been determined to act and promises made as early as the first spending review in 2010 are now being realised.

Next year will see the introduction of free-flow charging. That will please the noble Lord, Lord Davies. I know he has been waiting for that. Motorists will no longer stop at each end of the crossing to put money into a slot machine or hand it to an attendant. Believe it or not, getting this technology right has not been quite as easy as it sounds, and nobody wants to install a technology, have it go wrong and create that kind of inconvenience. Although it was hoped to bring it in late this year, it will now be coming in 2014. I believe October is the target date.

[Lord Berkeley]

I am grateful to the Minister. I am surprised she said the technology is not working very well because it is working in many other member states. In fact, I met somebody yesterday in Brussels who said that it is not only doing the charging, either fixed-point or road-user charging, but at the same time is checking whether lorries are overloaded, have not paid their licence and other things. The technology is there. It just needs applying to every toll in this country in the same way.

[Baroness Kramer]

I thank the noble Lord, Lord Berkeley, for that. I was on the board of Transport for London when we brought in the congestion charge and I can tell the Committee about the nightmare of trying to make sure that we had effective number plate recognition systems and everything else attendant on it. I suspect every one of your Lordships would rather we delayed a bit and made sure it worked faultlessly—that is probably tempting fate—rather than introduced it and had it not function properly.

[Lord Berkeley]

The Minister is right, but it has moved on since then.

[Baroness Kramer]

I fully accept that and hope the noble Lord will be pleased when he sees the system in operation.

The coalition Government are also committed to reviewing the options for a new crossing. In the 2012 national infrastructure plan, a new crossing for the lower Thames was identified as one of the coalition Government’s top 40 infrastructure projects, which are prioritised as nationally significant and critical for growth, and that continues into the current infrastructure plan.

Noble Lords will understand that we face a unique and important opportunity in choosing how to add capacity to the road network to best serve our national interests. Should we add capacity at the existing crossing linking the M25 between junctions 1a and 30, or should we add capacity further downstream linking other parts of the network? Whichever we choose will have substantial implications, and it is clearly a matter of public interest.

To better understand the relative merits of each option, the department embarked on a technical exercise to review the options. Once that review was completed in spring 2013, the department made the findings publicly available and consulted on the options from May to July this year. Noble Lords will be interested to hear that in addition to online communications, the Minister and officials met interested parties during the consultation in a series of briefings, meetings and public information events. Numerous members of the public took advantage of the opportunities and at the end the department recorded and analysed more than 5,700 responses to the consultation.

The noble Lord, Lord Davies, is right. The consultation has confirmed what many noble Lords may have expected; namely, that opinion is divided. Opinion is divided on both the case for a new crossing and on where to locate a new crossing. Those who responded to the consultation expressed a mixture of support and opposition for each of the options—options A, B, C or C variant. Respondents also made detailed comments highlighting serious issues relating to the economic, environmental and social impacts of each of the options. As I have already emphasised, our decision on where to locate a new crossing is of public interest. I know noble Lords would expect the department to respect due process and give careful consideration to the serious issues raised during the consultation. The Department for Transport intends to make an announcement shortly on next steps and to publish a summary of the consultation response. I have no reason to think that we will not be within our target of doing that by year end.

The question at the heart of today’s debate presumed that the Government would have reached a decision on whether a new crossing should be a bridge or a tunnel. Noble Lords raised issues about levels of tolls, whether tolling is appropriate and forms of financing. While the review which the Department for Transport undertook established the engineering feasibility of bridge and tunnel solutions for each location and considered the means by which it could be funded, it is clear that the detailed work that leads to decisions about technical and financial aspects is much more sensibly progressed when the Government have certainty about their preferred location.

A couple of specific issues were raised, particularly by the noble Lord, Lord Berkeley, that I have not covered. He will know that the department takes the view that a rail crossing would not address the rail-freight capacity issues forecast for the area and that demand for cross-river passenger rail services is likely to be relatively low and so it probably would not offer value for money. However, I am happy to take that issue away and look into it much more thoroughly, as well as looking into the rather strange usage patterns forecast. I will follow up on those issues with the noble Lord, Lord Berkeley.

I think that I addressed most of the direct questions asked by the noble Lord, Lord Hanningfield. There is one further issue on traffic forecasting. As he will know, it is based on population and economic growth and motoring costs. Let us follow up on that when we have more time to look at it.

I thank the noble Lord, Lord Hanningfield, for securing this debate and the noble Lords, Lord Berkeley and Lord Davies of Oldham, for their contributions. A new lower Thames crossing represents a unique and challenging opportunity. I have referred to the work undertaken to date to consider the options. I have indicated the high level of public interest in the decision on where to locate a new crossing, and I have advised the Committee that the department intends shortly to publish a summary of the consultation response and announce next steps. I trust that noble Lords will maintain their interest as we progress this important infrastructure priority.

High Speed Rail (Preparation) Bill

Lord Berkeley Excerpts

Tuesday 19th November 2013 Lords Chamber

[Lord Berkeley (Lab)]

My Lords, it gives me great pleasure to support this High Speed 2 Bill. I congratulate the noble Baroness on the way she introduced it and, of course, my noble friend Lord Adonis on his very full and fascinating description and arguments in favour of it. It is great that we now have all-party support for this project. I declare an interest as chairman of the Rail Freight Group.

As several noble Lords have very kindly said about rail freight, it is forecast to double over 20 years. We have discussed that, and passenger increase, in previous debates. Therefore I see High Speed 2, certainly in phase 1 and continuing into phase 2, as in effect adding two more tracks to the west coast main line in a way that will not obstruct or close it while it is being built. I think that the noble Lord, Lord Freeman, said that he expected that if we did not have this, there would be a shambles in 20 to 30 years. I believe that it will be closer to 10 years.

As part of the preparations, the freight industry is discussing the capacity with HS2. Noble Lords will understand that when phase 1 gets to somewhere around Lichfield, where it joins the west coast main line, you have lots of different train services going on to the west coast main line, which happens to go into a short section of two tracks that go through Shugborough Tunnel. We have had very useful discussions with Network Rail and HS2 about where all these trains will go when seven extra High Speed 2 trains in phase 1 join the residual services on the west coast main line—although “residual” is not the right word, because they are very important services. As noble Lords have said, there is no intention to reduce those services provided to people who are not on High Speed 2. If you add to that the increase in freight, you have a problem. Network Rail is working with the industry on what to do about that problem, but it will still be there in 10 years’ time. Whether it involves diversions, more night working or whatever, that challenge will happen now.

As I have said here previously, if it does not go by rail, it will go by road, and do we want another three-lane motorway somewhere? I think that the answer, as my noble friend said earlier, is that we do not. Therefore we have to find solutions to the capacity problem. It is a problem mainly on the west coast main line and, funnily enough, it is not just near Lichfield and thereabouts, but will happen north of Crewe as well, because there are sections of two-track there when you go over Shap towards Carlisle. The network needs looking at in a 20-year horizon so that the demands of freight and passenger—not just up the line but across it and parallel to it—are met. It is good that it has begun, and we shall probably have to have quite a few debates about the detail of this when one gets to the hybrid Bill and the Select Committees to see what answers and commitments can be made. However, in many ways that is a good challenge to have.

I was struck by comments from my noble friend Lord Adonis and the noble Lord, Lord Bradshaw, and others about the appraisals. It is absolutely crazy to say that that the growth will stop three years after phase 2 opens. That is rather like the announcement last week by either the Treasury or maybe the Department for Transport that the forecasts are that the growth of cycling in London will suddenly stop in 2015 and will thereafter decrease. Leaving aside the terrible run of accidents in the past week or two, what evidence is there that the growth in cycling in London over the past 10 years, which has been pretty surprising and gratifying for me, will suddenly tail off? It is probably something to do with the fact that they do not want to spend any more money on it. We need a review of the whole appraisal methodology. Maybe the noble Lord, Lord Deighton, is the person to lead that. The whole structure is not fit for purpose. Having arguments about what the cost-benefit ratio on a project the size of HS2 is is a pretty good waste of time, but still, we have to do it.

The noble Lord, Lord Stevenson, spoke about environmental issues, particularly in the Chilterns, and about AONBs and woodlands; I do not think that he mentioned bats, but they will come in. I was involved in a way with the construction of HS1 and had many dealings with the noble Lord, Lord Freeman, when he was Minister. He certainly tried very hard and very successfully to deal with the objections of some of the people who lived along that route. One person said, “You are destroying the garden of England”. In three years’ time, after the line was opened and the trees had grown up a bit, he told me that it had not made any difference to his life at all. The construction will be hard, but we have to be careful about overreacting to what will, I hope, be a temporary and well managed construction phrase. When it is built, it will not be particularly serious. This makes me worry about how one balances the concerns of people against environmental concerns. As the noble Lord, Lord Jenkin, said, 2,700 properties in Camden are affected against 100 in the Chilterns. How do we balance those? Are the Chiltern people more important, or is the environment more important? That is a very difficult judgment to make, although I am sure somebody will make it. However, we have to be careful that we do not overreact. I say this as someone who was brought up in Great Missenden; I know it very well.

I have had lots of letters from people about objections. Some say that this is about capacity, others that it is about speed, while others argue about the economy. However, let us just look at what has happened to Lille and Lyon in France, which were two of the first provincial cities in France to be connected to the high-speed network. The city of Lille paid a lot of extra money to get the station in the middle of Lille rather than having the line go round the outside, as originally planned. The two cities are completely transformed. To say that such a line pulls economic benefit away from such cities to the centre is all wrong. It will help. Even outside cities such as Lille—up to 20, 30 and 40 kilometres away—there are benefits. We should look and see what has happened there.

We should also reflect on the fact that the first high-speed line in France, to Lyon, was built as a means of providing more capacity; it was nothing to do with speed. It is a virtually straight line from Paris to Lyon, which goes through very sparsely populated countryside, and it has done so well in the 20 or 30 years that it has been open that they have had to replace all the track already and have signalled it so that, I believe, it can now take a train every two minutes, because the demand is increasing. That will probably go on.

The track is very steep and undulating. I remember taking some Members of Parliament there when I worked for Eurotunnel, and they drove a train; we were allowed to drive the trains in those days. It was great fun, although people normally got a bit seasick in the front. It was also very exciting, and it still is exciting—and it just shows what the demand really could be.

To conclude, I shall say a word or two about connectivity. A lot of people have said that the HS2 line is not connected, but I think the Government are right not to specify what services will be operated in 10 or 20 years’ time. The links are there. They are linking into the west coast main line. They are going to link to Manchester, to the west coast north, to Leeds and everything. In the south, Old Oak Common, as some noble Lords have said, is a wonderful interchange.

I have concerns about some of the connections in London. The noble Lord, Lord Bradshaw, and I are coming up with an alternative idea that, we hope, will reduce the demolition around Euston and provide better connectivity. I also have concerns about the station in Birmingham and the lack of connectivity on to Wolverhampton, because people will not save much time if they have to walk for 15 minutes between the new station and Birmingham Snow Hill to go on to Wolverhampton.

However, these are small details. The key issue is how to get the connectivity between these new services and the existing ones and city centres. We have problems in many station termini in London: Victoria, Paddington and Euston all get very congested in the rush hour, particularly on the Underground. Connecting some of the west coast main line suburban trains into Old Oak Common and directly into Crossrail will save an enormous number of passengers from going into the Underground at peak times.

Those are the kinds of issues that need to be discussed because HS2 is part of a network, and I hope that HS2 trains will go to many different parts of the north and west on electrified lines. That will provide enormous benefits in capacity. The speed will help in some places, but the important thing is capacity, because if we do not have the capacity we will be really lost. We have to get on with this as quickly as we can. I do not believe that doubling or quadrupling the great central or the midland main line will be enough. Just imagine the hassle in High Wycombe and Princes Risborough if we had to demolish half the houses there and build four tracks. The midland main line will probably have to be reconstructed as four tracks, as it used to be, in addition to HS2, within 10 or 20 years anyway. This is the kind of growth we are looking at. We have to get on with this project. It has been well thought out. I am sure that there are still some improvements that can be made, but I end by asking the Minister this question, to answer when she winds up: when will the hybrid Bill be published?

Railways: Passenger Demand

Lord Berkeley Excerpts

Thursday 31st October 2013 Lords Chamber

[Baroness Kramer]

My Lords, I could not agree more with the noble Lord. I would also say that the benefit-cost ratio for HS2 assumes a growth in rail demand of 2.2% while, as he has said, the actual growth in demand over recent years has been much closer to 5%, which would significantly increase that cost-benefit case. Capacity is the issue; the alternatives just do not offer the scale. For example, HS2 will deliver over 13,000 peak hour seats to west coast destinations compared to just 3,000 for the alternatives.

[Lord Berkeley (Lab)]

My Lords, how many years of closure at weekends or at other times of the three main lines going north from London would be required to meet the demand of passengers and freight—and freight will double in the next 20 years—if that was to be a substitute for HS2? I declare an interest as chairman of the Rail Freight Group.

[Baroness Kramer]

My Lords, we would be looking at something like 14 years of weekend closures, which is extraordinary disruption. That assumes a very aggressive construction schedule of two simultaneous schemes on each route at any one time. If it was done in a more usual pattern, there would be even more weekends of closures. The question of freight is a serious one, because the alternatives would not add a single additional freight path on the southern section of the west coast main line, whereas, by transferring long distance passengers to HS2, there is a possibility of up to 20 additional freight paths on that same congested set of lines.

High Speed 2

Lord Berkeley Excerpts

Thursday 24th October 2013 Lords Chamber

[Lord Berkeley (Lab)]

My Lords, I very much welcome this debate and I welcome the noble Baroness, Lady Kramer, to her new position. I am sure that we will have some interesting debates now and in the future. I declare an interest as chairman of the Rail Freight Group.

I shall start by discussing the issue of capacity. My noble friend Lord Rooker mentioned freight. I shall quote from a paper from the HS2 Action Alliance. With a name like that, I would have thought that they would have been supporting HS2, wanting to make it go faster, but, surprisingly, they do not. It says:

“Improving the existing West Coast Mainline is a more cost effective and risk-free way to meet future rail capacity needs”.

Where are they living? Many noble Lords have spoken about the problems on that line, and I will not repeat what they have said. One of the problems is that if you improve a line, you either dig it up and close it or you extend it sideways into people’s properties. That will have just as much opposition as building a new line—in fact, probably more—because people will want compensation, as they do. Yes, the line is going past their property and has been there a long time, but their property is very valuable. That idea just does not work.

The real problem that I want to mention with regard to capacity, though, is freight. Freight is different from passengers because it runs only if the customers and the train operators want it to and therefore, hopefully, it will make a bit of money. There is no subsidy. The industry has forecast a doubling of demand for rail freight on the west coast main line in 20 years. That is because the type of traffic that goes up that line is mainly containers from retailers. That is what retailers like—noble Lords will have seen some of the supermarkets giving green credentials on a packet of cheese, or whatever they are selling—so they have asked for this. Freight is growing by leaps and bounds; it might treble, for all I know. However, if you want a doubling of traffic in 20 years, that is the equivalent of an extra two trains an hour on the west coast main line. It is full already, as other noble Lords have said, and we are having discussions with Network Rail about how this can be accommodated, particularly when phase one is built and it stops near Tamworth. Still, it is a wonderful challenge to have.

What is the alternative? There are two options. One is that it could go by road. Let us have a motorway through Little Missenden; I am sure that my noble friend Lord Stevenson would not like that. I was brought up in Great Missenden, and I would not like to see a motorway go through there; there is a railway there already, and a horrible road. If freight is not going to go by rail, therefore, it will go by road—or, the other option, it does not go at all. Do we want it not to go at all? What would be the consequences for the economy if it did not?

I reflect that the latest route through the Chilterns is going to affect about 100 properties, whereas in Camden it will affect 2,700. That is why the noble Lord, Lord Bradshaw, and I have come up with our alternative route through Camden that will, we hope, significantly reduce the demand for demolition, perhaps down to nothing at all. I look at HS2 as adding two more tracks to the west coast main line, for reasons of capacity. It is pity that it did not start off being sold that way, but it is indeed for capacity. We need HS2, otherwise the traffic will not go, or we go by road.

I conclude by commenting a little more on my noble friend Lord Snape’s comments about HS1, which I was also involved in. There is a study by Volterra consultants about the economic benefits of HS1, which could therefore apply to HS2. Apart from generating extra rail and car park revenues of £3.4 billion, which we may or may not want, the transport benefits include more than £100 million of congestion relief, an increase in rail revenue of £3.4 billion, while earnings per annum across the study area—Kent—have increased by between £62 million and £360 million due to the commuting facilities. You may not want to commute but perhaps you do. Overall this is estimated at a very significant benefit to the UK of HS1 over 60 years—it is a long-term project—of £17.6 billion. I think this is worth having.

I support the way that this project is going forward. I welcomed it when it was launched by my noble friend Lord Adonis. I welcomed this Government taking it up, and I agree with my noble friend Lord Rooker that it would be unthinkable to cancel it. I would like to see it go to Scotland in some shape or form.

I shall support this project. I want to see the costs come down and I shall work towards that. I think there should be better leadership and communication and I welcome Sir David Higgins to that role. I see no alternative to creating the necessary additional capacity if we want our economy to grow.

Transport: Bus Services

Lord Berkeley Excerpts

Thursday 10th October 2013 Grand Committee

[Lord Berkeley (Lab)]

My Lords, I am grateful for the opportunity to say a few words in the gap. It is extraordinary hearing the noble Lord, Lord Bradshaw, and the noble Baroness, Lady Scott, talk about rural bus services. Where I live in Cornwall, exactly the same thing is happening: buses are being cut. I do not have a car; I have a bicycle, but not everybody who does not have a car can go by bike. The problems are the same in my area.

This also comes back to the debate we had on the Question in the Chamber yesterday about new roads, the problems of resurfacing existing roads, filling in potholes and so on. The Minister who answered for the Government, the noble Lord, Lord Popat, said that local authorities have got a big budget for this. However, the problem is that local authorities’ budgets are being cut all the way round and that applies to the budgets for buses and road surfacing. I do not buy into this continuing mantra, which comes not just from this Government but has been going on for years, that everything central government does is perfect whereas everything done by local authorities is rubbish and should be cut down or given to somebody else because they can do it better. We have a long way to go in this regard and the problem with rural buses is extremely serious.

I also want to refer briefly to bus lanes, particularly in the context of city centres. I do not think that we have discussed them recently, but there has been a lot of debate over the summer, particularly in London, about cyclists being killed by trucks and trucks being required by the mayor to put extra safety equipment in place. I refer particularly to tipper trucks as opposed to articulated lorries. The safety equipment is a good idea and may possibly help to prevent a few accidents. However, the real problem is enforcement. These trucks are allowed into London and I believe that they can be fined £200 a day if they do not have the right equipment fitted. How will the mayor ensure that the enforcement is sufficiently rigorous to make the owners of these trucks comply with the regulations? How will he ensure that bus lanes are kept free for buses, and for cyclists if they are allowed in them?

Pedalling or driving round London, whether in a bus or a car, you see endless examples of cars, vans and trucks being parked in bus lanes when they should not be there. They may be 24/7 bus lanes or they may apply just in the morning and evening rush hours, but illegal parking in them dramatically constrains the reliability of buses. The bus drivers are very good and do their best, but the whole point of bus lanes is to provide greater reliability for passengers, drivers and operators. However, that does not exist. Before we bring in too many more regulations in this area we should have a strong go—government, local authorities, police; whoever’s job it is—at making sure that the existing regulations are properly enforced and are seen to be enforced by the public. I would love to see a car illegally parked in a bus lane have a ruddy great big ticket put on it and be subject to a big fine. The driver would not do that again, but at the moment, most people think, “Well, what’s the point?”. I shall be very interested to hear what our new Minister has to say. I warmly congratulate her on her appointment and I look forward to working and debating with her in the future.

Railways: East Anglia Network

Lord Berkeley Excerpts

Thursday 10th October 2013 Grand Committee

[Lord Berkeley (Lab)]

I am very grateful to the noble Baroness for achieving this debate. For me, the East Anglia rail network is one of the most important parts of the network in our country. I declare an interest as chairman of the Rail Freight Group. I will not talk just about freight but about Sizewell, which is in the region. Most speakers have commented on the lack of sufficient track on most of the network. Most places are two-track, except the Felixstowe branch which is a single track. As the noble Baroness has said, Felixstowe is a very successful port.

In spite of that—I say “in spite of”, although there is an hourly passenger service on the Felixstowe branch—Felixstowe is achieving 30 trains in each direction on the single track, which is a credit to the port, Network Rail and others. The noble Baroness mentioned the chord that allows the trains to go straight from Felixstowe to Peterborough and Nuneaton without reversing. I call it the bacon factory chord which is a much nicer name. It will make a great difference to the volume.

It is a lovely challenge to have all the jobs at Felixstowe but the intermodal traffic by rail is forecast to at least double, probably more, in 20 years. Whether it will go to Felixstowe, London Gateway or Southampton is a matter for debate. I know that the port will work very hard to get a good market share of that. A new rail freight terminal has just opened at Felixstowe. I do not know whether any noble Lords went to the opening. I could not go myself but I was told that it was very good. However, there Felixstowe is, connected to a single track, which needs to be doubled quickly. It is not a difficult job as it goes mostly through fields. A lot of improvements have already been done to the bacon factory chord, Ipswich, Nuneaton through Peterborough. The gauge has been enhanced to take the nine-foot six-inch boxes on standard wagons and the signalling is being improved. A few other things also need doing.

The next stage is to have the line electrified. Around six months to a year ago, the Government announced an electric spine from Southampton, which will be very useful for freight and which we all welcome. However, there should also be an electric spine from Felixstowe, which would improve the capacity. It would obviously reduce the emissions that there are from the diesel trains. It would also enable more freight trains from Felixstowe to the Midlands and the north-west to avoid going along the North London Line in London. Our colleagues in London are not very happy about having all those freight trains. It is rather odd to have freight trains going through virtually the centre of a major capital city. That suggestion would help a great deal.

Electrification needs to be on the agenda in a firm programme, whereby the train operators will invest in the electric locos necessary. It is really good news that in the past month Direct Rail Services announced the order for the first new electric locomotives probably for 25 years. The beauty of them is that they also have a diesel donkey engine in them so that they can do the last mile into terminals. It needs doing, and it needs doing properly and planning in advance. For me, freight is a very important part of the East Anglia region. I am sure that those who are keen to see better passenger services will be pleased that more freight in the future will probably go a different way rather than through London.

As regards Sizewell, a big nuclear power station will probably go ahead and will employ a large number of people. I have been talking to EDF, the developer, about whether it could try to avoid too much damage to the local roads in Suffolk and the area by making more use of the railways. I know there has been an improvement in Beccles, which is good but it probably needs double tracking, where there is none, from Woodbridge or somewhere around there.

There are two reasons for doing this. One is to get the workers to work. Why cannot they go by bus or car? Of course they can, but in a great big traffic jam, which would be very bad for all the other users. Why could there not be a bit of a link? It would be the old, original link to Aldeburgh, extended into the Sizewell site to run passenger services for the workers—the commuters, if you like—from Ipswich or wherever. I see that as a big Section 106 improvement, which I hope the local authorities will push for. I think they will.

The second reason for making more use of the railways is, of course, to try to stop too many deliveries coming by road. This was done very successfully in the construction of terminal 5, and it was done reasonably successfully for the Stratford Olympics. All the bulk materials can come and go—they can go by sea as well now. In the construction of terminal 5, when it came to bringing things such as desks, basins and all the smaller things that you would not necessarily bring by rail, there was a series of consolidation centres around the country, wherever was convenient for the manufacturing or supply. The contractors called up for what they wanted the day before, and the goods were sent down by train overnight. It just needed a rail terminal in the area.

The combination of passenger and freight benefits for Sizewell and for the residents who live around there would be immense. I hope the Government will encourage EDF to look at that very positively when it comes to the planning process, and make it all part of a Section 106 agreement. Again, I am very pleased to welcome the new Minister to this debate and I look forward to what she has to say.

--- Later in debate ---

[Lord Marlesford (Con)]

My Lords, I am grateful for the chance to say a few words in the gap. When I was a schoolboy after the war, living in Suffolk, we had a wonderful stopping service. It was a direct line between Liverpool Street and Lowestoft. I would get out at Wickham Market and change to a little steam train that went to Framlingham. I would get out at Marlesford. Sometimes I was allowed to stand on the footplate, and I would be met by my mother with a pony and cart at Marlesford station.

My next real experience of rail was that for five years I was on the board of British Rail Anglia. It was the worst commercial experience I have ever had; it was so frustrating. The quality of the management was just not there—and the key is management. There has been talk about producing good franchises. When considering who you should give a franchise to, it is necessary to look at the management and the targets that they are prepared to set themselves. Let them be judged by those targets. Interview the management. We all know that if you are in the advertising world and you decide to hire an advertising agent, you do not just see the agency, you see the person who is going to handle the account, so insist on that. It is a matter of buying a good franchise by doing it properly, and that has not been done.

In the old days when you had the wonderful non-stop service from London to Ipswich and Norwich, you could guarantee an hour between London and Ipswich. Now, however, it is different. One of the things that I had as a non-executive on the board was a first-class free ticket to wherever I wanted to go, but I virtually never used it on my own line if a journey was time-sensitive. As has been said, reliability is crucial. Trains are about reliability. You cannot blame someone else when you are in a car, but you jolly well can when you are on a train. That is another factor which should be properly taken into account.

The noble Lord, Lord Berkeley, was absolutely right to say that something has to be done about Felixstowe. We should have a new target for the amount of freight that is carried; I think that it is only about 20% at present.

[Lord Berkeley]

I think it is about 30% now. It is one of the best in the country.

[Lord Marlesford]

Well, it wants to have a new long-term target, maybe 50%, and in my view let us forget about HS2.

I shall end on a positive note because I am allowed only two or three minutes in which to speak. At least the difficult communications that we have to East Anglia have kept Norfolk and Suffolk the very beautiful counties that they are, and I proudly declare an interest as president of Suffolk Preservation Society.

Railways: Crossrail

Lord Berkeley Excerpts

Wednesday 5th June 2013 Lords Chamber

[Earl Attlee]

My Lords, I am grateful for the support of my noble friend for the SMEs and other businesses supporting the Crossrail project. A lot of them are involved, and, in addition, many of them are based far outside London and the south-east. Transport for London will be responsible for Crossrail services. It is procuring a private sector Crossrail train operator concession, using a model similar to London Overground. Operations will start in May 2015.

The current opening strategy is split into five phases, beginning with Liverpool Street to Shenfield in May 2015. In December 2018, services will start through the main Crossrail tunnel between Paddington and Abbey Wood. Full services will open in December 2019.

[Lord Berkeley]

Will the Minister explain whether there are still plans to have two different signalling systems on this tunnel, one in the tunnel and one on Network Rail on either side? What assurances can he give that the trains will not have to stop at the changeover point? That would not be very good when a two-minute headway frequency is planned for the trains. Is the matter resolved yet?

[Earl Attlee]

My Lords, it is not resolved yet. The noble Lord is quite right that there are two signalling systems. One is needed in the central portion in order to meet the productivity requirements. Engineers are working through the issues of transitioning from one system to another, but the trains will not need to stop in order to transition the system.