Transport Council

Lord McLoughlin Excerpts

Friday 20th March 2015 Written Statements

[The Secretary of State for Transport (Mr Patrick McLoughlin)]

I attended the first Transport Council under the Latvian presidency (the presidency) in Brussels on Friday 13 March.

The first item on the agenda was a policy debate on the Fourth Railway Package. The presidency sought further guidance on the market pillar of the package in order to reach their ambition of achieving a general approach by June. I set out the great success of our liberalised market and urged member states to grasp the opportunity of the market pillar to develop a true single market for rail and support a vibrant, competitive and sustainable rail sector across Europe.

The debate on the three key issues identified by the presidency—the independence of infrastructure managers and ex-ante oversight role of regulatory bodies on appointments to infrastructure boards under the governance file and how to ensure non-discriminatory access to rolling stock under the public service obligation file—drew a split response.

On governance, I had strong support from a range of member states for the approach that a truly separated model was the most effective remedy against potential discrimination by the infrastructure manager towards the railway undertakings, and that additional regulation was not required in such cases.

On providing non-discriminatory access to rolling stock to ensure an effective opening of the market, I shared our positive experience of establishing a leasing market. Whilst all member states recognised the need to address this barrier, many member states pressed for flexibility to choose from a “toolbox” of options.

There was a call for a progressive move towards competitive tendering to avoid market failure from a sudden change, and mixed views on reciprocity measures if a long transition period were granted. The differing needs of member states under fierce competition from bordering third countries was highlighted and consideration of the social dimension of new operators entering the market was requested.

The presidency presented a paper on EU competitiveness and transport policy, focussing particularly on the funding opportunities from the new European Fund for Strategic Investments (EFSI). Commissioner Bulc then stressed three key principles: first, the need to invest in infrastructure and the shortfall within the EU for such activities; secondly, the need to embrace innovation for example, autonomous vehicles; and, thirdly, the need to remove technical and legal barriers to enable the transport sector to grow.

Other member states views included the need to invest in innovation; the importance of the EFSI fund; less regulatory burdens; and state aid rules becoming more permissive to help ensure that there was a level playing field with non-European countries.

I emphasised the importance of preparing projects so that they were ready to begin by the end of the year and called upon the Commissioner to return to Council to outline which transport projects were being funded by EFSI so that the existing grant mechanisms could be reviewed in light of developments there. Commissioner Bulc agreed to my request to report back on EFSI transport funding and repeated that her key mission was to ensure that EU transport policy was built around citizens and industry needs.

Under any other business the presidency informed Council about the forthcoming Asia European meeting of Transport Ministers on 29-30 April in Riga, noting that increasing trade between Europe and Asia called for enhanced connectivity.

The presidency updated Council on the outcome of the conference on remotely piloted aircraft systems on 5-6 March in Riga, drawing attention to the Riga declaration which summarised the key principles of developing a risk-based and light-touch approach to regulation but with sufficient speed to provide the necessary investment conditions in this fast-developing sector.

Commissioner Bulc updated Council on actions taken following the downing of aircraft MH17 over Ukraine in July 2014, and encouraged member states to support the European Aviation Safety Agency’s mechanism for sharing civil and military risk assessments of civil aviation flights over conflict zones.

The Commission delivered a presentation on their Energy Union Communication of 25 February, emphasising that the goal of decarbonised transport called for a gradual transformation of the entire transport system. The Commission believes that its planned road package, to be published in 2016, will address reducing CO₂ emissions from vehicles felt that success would depend upon member state actions, not least in implementing alternative fuels infrastructure and supporting local authority sustainable urban mobility plans.

Lastly, France and Germany called for a comprehensive air transport agreement between the EU and the six members of the Gulf Co-operation Council (GCC) as a means to persuade the GCC to adopt “fair competition” principles. Germany emphasised that if the conditions of fair competition and limited market opening were achieved, she would be willing to consider a mandate for a comprehensive agreement with the GCC. Both member states pressed their support for the Commission to bring forward a revision or replacement of regulation (EC) 868/2004 on protection against subsidisation and unfair pricing.

Several member states supported this position whilst the need to address distorted working conditions within the EU was highlighted. I advocated the wider benefits of liberalised international air transport for both business and the consumer in UK and across Europe through the creation of jobs and growth, better regional connectivity and improved customer choice and quality. I noted the potential benefits of a comprehensive air transport agreement and a review of the unfair pricing regulation but urged member states not to lose sight of the value of Europe’s relationship with the GCC states in air transport which extends to purchases from EU manufacturers.

The Commission suggested it may proceed with a comprehensive air transport agreement as a means to send a strong and united EU position to the GCC states while its work would continue on bringing forward a revised or entirely new regulation 868/2004 with sufficient teeth to be effective.

[HCWS431]

Rail Franchise

Lord McLoughlin Excerpts

Friday 20th March 2015 Written Statements

[The Secretary of State for Transport (Mr Patrick McLoughlin)]

I am pleased to inform the House that my Department has reached agreement with First Keolis TransPennine Express Limited to continue to operate train services in the North of England and Scotland. This means that the current franchisee will remain in place for a period of 12 months from 1 April. There will be an optional extension period of up to 10 months. This deal ensures that passengers across the north continue to benefit from TransPennine Express’ experience of running this franchise. It also paves the way for the new competitively-let TransPennine Express franchise, which will deliver new trains and improved services.

As I announced on the 8 January, my Department has reached agreement with Northern and TransPennine Express to ensure continuity of services after five of TransPennine Express’Class 170 diesel trains are transferred to Chiltern Railways, by their owner, Porterbrook Rail Leasing Ltd. I can inform the House that my Department has agreed with Direct Rail Services Ltd to operate an enhanced train service on the Cumbrian coast line, between Carlisle and Barrow-in-Furness as part of this deal.

[HCWS426]

EU Transport Council

Lord McLoughlin Excerpts

Thursday 12th March 2015 Written Statements

[The Secretary of State for Transport (Mr Patrick McLoughlin)]

I will attend the first Transport Council under the Latvian presidency taking place in Brussels on Friday 13 March.

There are only two main agenda items for discussion. The first item on the agenda will be a policy debate on the market pillar of the fourth railway package. This will cover the proposal to amend directive 2012/34/EU establishing a single European railway area, as regards the opening of the market for domestic passenger transport services by rail and the governance of the railway infrastructure. It will also cover the proposal to amend regulation (EC) No 1370/2007 concerning the opening of the market for domestic passenger transport services by rail. I welcome this opportunity to press for further liberalisation of the EU single market for rail through the market pillar of the fourth railway package.

The second item on the agenda will be a policy debate on the contribution to EU competitiveness, growth and jobs through transport policy developments, the challenges of attracting private investors to transport projects and the global competitiveness challenges that the EU transport sector is facing. I welcome the focus in the Commission President’s investment plan on reforms to raise growth prospects across Europe and the emphasis on increasing private sector investment. Structural reforms to complete the single market and to improve the incentives for investment are essential for Europe’s competitiveness and prosperity, and are a long-standing priority for Britain.

Under Any Other Business, the presidency will provide information on the forthcoming third ASEM Transport Ministers’ meeting in Latvia and the outcome of the conference on remotely piloted aircraft systems in Riga on 5 and 6 March. The Commission will provide information on civil aviation flights over conflict zones, where the UK supports measures to ensure wider understanding of the risks of operating over and into certain areas. The Commission will also deliver a presentation on the energy union. Lastly, the French and German delegations will present views on the ongoing EU-Gulf Co-operation Council aviation dialogue and associated strategies on safeguards for fair competition. By facilitating business-to-business and people-to-people links, international air transport benefits our wider economy and we seek, therefore, to minimise barriers to market access such as unfair competition. With this in mind, the Government are always keen to engage with our international partners on strategies for addressing such matters.

[HCWS376]

Oral Answers to Questions

Lord McLoughlin Excerpts

Thursday 5th March 2015 Commons Chamber

[Mary Macleod (Brentford and Isleworth) (Con)]

1. What recent progress has been made by the Airports Commission.

[The Secretary of State for Transport (Mr Patrick McLoughlin)]

The Airports Commission recently completed a consultation on 3 February on its assessment of proposals for additional runway capacity. The commission is continuing to undertake further analyses on the shortlist of runway options before publishing its final report in the summer of 2015.

[Mary Macleod]

May I congratulate the Government on their policy on no third runway at Heathrow? Does the Secretary of State agree that the aviation industry would be best served by a solution that encourages competition; can be delivered sooner, cheaper and easier; takes into account the impact on local residents; and does not require billions of pounds of taxpayers’ money?

[Mr McLoughlin]

My hon. Friend has been very consistent in her opposition to any third or fourth runway at Heathrow, and I know she supports the expansion of other airports. I look forward to receiving the commission’s recommendations and report this summer and to my hon. Friend’s comments on it.

[Jim Fitzpatrick (Poplar and Limehouse) (Lab)]

Have we not just wasted another five years? The coalition has delayed building new runway capacity for the south-east because the Liberal Democrats are in denial about aviation being a very important economic instrument. I think the Conservative party now gets it. Why have we had to wait another five years?

[Mr McLoughlin]

I will not take any lessons from a party that wasted 13 years in not doing anything about extra capacity. It is a bit rich of the hon. Gentleman to accuse the Government of not taking action. The truth is that all the options that are being discussed by the commission are very different from the proposals considered by the previous Government.

[Mrs Cheryl Gillan (Chesham and Amersham) (Con)]

Has the Secretary of State asked the Airports Commission to examine the cumulative impact of any runway extension at Heathrow and how it would affect the local area if it coincided with other projects, such as the construction of HS2, the Amersham waste transfer station and the development of Newland park? What assessment has been made of the impact on the local area?

[Mr McLoughlin]

The commission is doing a comprehensive piece of work looking at all the options relating to aviation capacity in the south-east and the associated infrastructure projects that any project it suggests will affect, so I am sure it will have considered the points made by my right hon. Friend.

[Sir John Randall (Uxbridge and South Ruislip) (Con)]

Notwithstanding whichever decision the Davies commission comes to, does my right hon. Friend agree that connectivity to Heathrow is now being sorted pretty efficiently through Old Oak Common and that there is no further need for the Heathrow spur should HS2 go ahead?

[Mr McLoughlin]

This may be the last time I am able to address my right hon. Friend in this Chamber. It has been a great pleasure to work with him over many years. He has made a huge contribution, not only to the House of Commons and the Conservative party, but in standing up for his constituents in Uxbridge.

I agree with my right hon. Friend that these matters need to be addressed very carefully. Of course, at the moment the whole question of HS2 is being studied by a Committee. I am not going to trespass on the valuable and important work it is doing, but my right hon. Friend makes some valid points. The importance that Old Oak Common will have to the infrastructure of this country is vast indeed, and I hope to be able to say a bit more about that shortly.

[Mr Laurence Robertson (Tewkesbury) (Con)]

2. What recent discussions he has had with train operating companies on increasing the use of rural railway stations; and if he will make a statement.

[The Secretary of State for Transport (Mr Patrick McLoughlin)]

Officials regularly meet train operating companies where usage is a key discussion point. We are working hard with the industry to increase rural station usage. We recognise the important social role of stations in building communities, and have therefore introduced a new policy requirement to develop social and community development plans in new franchises.

[Mr Robertson]

I thank the Secretary of State for that response. Does he agree that one way we can get cars off the road and reduce congestion on our motorways and, indeed, on smaller roads is to develop rural train stations? We have one at Ashchurch for Tewkesbury, which is a very good station, but it is underused at the moment. Can we try to make such stations better used by train operating companies?

[Mr McLoughlin]

The answer to my hon. Friend’s question is yes. Ashchurch for Tewkesbury station has the potential for more use. I would welcome that, as I am sure my hon. Friend would too. For new franchises we ask operators to look at such questions in great detail. I acknowledge his comments, and no doubt Gloucestershire county council will make such points in due course.

[Mrs Caroline Spelman (Meriden) (Con)]

As a result of the landslip on the Chiltern line, kiosks and shops at rural railway stations have suffered a drop of at least 50% in their revenue. Will the Secretary of State urge Network Rail to look at mitigation, such as reducing rents, during the period of disruption?

[Mr McLoughlin]

My right hon. Friend makes a very good point. I hope that there will be an announcement soon about the full reopening of the line. If that has not already been announced, I think it will be announced shortly. I will discuss her very good point directly with the chief executive of Network Rail. People with businesses who are renting from Network Rail have been directly affected by that landslip.

[Nigel Mills (Amber Valley) (Con)]

One issue with encouraging the use of Ambergate station in my constituency is the strange fare system. Even though a fare to the next station is relatively cheap, the cost of a fare to Birmingham from both stations can be very different. Is there any way that the Secretary of State can fix the fare system to get rid of its anomalies?

[Mr McLoughlin]

I know Ambergate station very well, as the line goes up to Matlock and down to Derby. There are indeed anomalies in ticket purchasing on that line, and I am only too well aware of such frustrations. My hon. Friend makes a valid point, which I certainly want to look at. There are huge opportunities in ticketing, including with the development of smart technology.

[Andrew Rosindell (Romford) (Con)]

3. What plans he has to review vehicular access rights to bus lanes.

--- Later in debate ---

[Sir Alan Haselhurst (Saffron Walden) (Con)]

4. When he expects to publish the invitation to tender for the Greater Anglia rail franchise.

[The Secretary of State for Transport (Mr Patrick McLoughlin)]

The procurement competition has been live since the issue of the procurement documentation on 19 February, and applications are due on 15 April. An invitation to tender will be issued in August, with tender returns due in December 2015. Any delays in the process will result in a delay to the provision of any new rolling stock or services on the line.

[Sir Alan Haselhurst]

Is my right hon. Friend aware that a great many of my constituents expect that the successful bidder will be required, or at least incentivised, to bring in new rolling stock on the Great Eastern and West Anglia lines to replace the type 317 and 321 trains, which by now are old, uncomfortable, unreliable and inefficient?

[Mr McLoughlin]

We expect to ask bidders to provide a rolling stock strategy that meets the needs of all passengers in East Anglia, while providing a cost-effective solution. They will be in no doubt of the desire of all passengers using that route for substantially new rolling stock, and the rolling stock that my right hon. Friend rightly describes should be taken out of service in due course.

[Mr Simon Burns (Chelmsford) (Con)]

May I stress to my right hon. Friend that if there is no new rolling stock with the award of the franchise, there will be considerable disappointment among commuters and other users, and it will totally undermine all Network Rail’s improvements to the infrastructure? Current rolling stock on the commuter lines is so outdated that it has problems with acceleration and braking.

[Mr McLoughlin]

I completely understand the desire of my right hon. Friend for new rolling stock on that route and for improvements on the route overall. Norwich in 90, a very effective campaign, has been launched, and services to other towns are also quicker.

[Sir Bob Russell (Colchester) (LD)]

Commuters from Colchester pay some of the highest fares in the country, and successive Governments have failed significantly to improve the railway infrastructure. Does the Secretary of State agree that without implementation of the East Anglia rail manifesto, whoever wins the Greater Anglia rail franchise will find difficulty in improving the service between Colchester and London?

[Mr McLoughlin]

We have just seen the launch of the new east coast main line franchise. It is committed to reducing the cost of rail tickets, and I hope that anyone who competes for the East Anglia franchise will come forward with new ideas that will not only increase the capacity on that line and improve rolling stock, but look at the cost of tickets.

[Richard Graham (Gloucester) (Con)]

5. What plans he has to improve railway stations to cater for increased rail traffic.

--- Later in debate ---

[Glyn Davies (Montgomeryshire) (Con)]

T1. If he will make a statement on his departmental responsibilities.

[The Secretary of State for Transport (Mr Patrick McLoughlin)]

My Department has continued to operate apace as we move towards the Dissolution of Parliament. Last week we introduced the new invitation to tender for the Northern Rail and TransPennine Express services, and transferred East Coast back to the private sector. That is a major step in a franchising transformation that places passengers at the heart of services.

We also continue to invest in our roads. Fifteen strategic road schemes have been completed since 2010, and a further 16 are under way. Because local roads are equally important, we have committed £6 billion to them, up to 2021, in addition to the 27% increase in funding that has taken place since 2010. Funds for cycling have doubled since 2010, and we are committed to a new long-term investment strategy.

[Glyn Davies]

In my constituency and that of my right hon. Friend the Member for North Shropshire (Mr Paterson), there has been a decades-long campaign for a new bypass at Llanymynech, which lies between the two constituencies. Will the Minister join the Welsh Government in developing a scheme for that purpose?

[Mr McLoughlin]

I am grateful to my hon. Friend for raising this issue. Such a scheme has been identified in the draft national transport plan for Wales as contributing to access to services. We will discuss the matter further with Welsh Government officials to assess their priorities, but no one could have campaigned harder for it to be examined than my hon. Friend.

[Michael Dugher (Barnsley East) (Lab)]

This week, following the Government’s privatisation of East Coast, Stagecoach released a trading update announcing that the privatisation would “significantly enhance” its profits. We know that the chief executive of Stagecoach, Martin Griffiths, is scraping by on £2.2 million a year—which, by the way, makes him eligible for the Government’s tax cut for millionaires, so his week is getting better and better. At the same time, Stagecoach is threatening to withdraw its buses from the north-east, simply because the local transport authority wants to do something about the fare rises and bus route cuts that have marked the Government’s failure and broken promises. When will Ministers condemn what Stagecoach is doing in the north-east? Do we not need a Government who deliver for the travelling public, not for the Stagecoach shareholders?

[Mr McLoughlin]

What we need, and what we have, is a Government who are investing record amounts of money in our transport infrastructure—far more than the last Government invested in both capital projects and revenue projects. I can only take what was said in Transport Times by the editor, David Fowler, in his latest edition this week:

“On rail franchising and speed cameras”

Labour’s policies

“seem to be going against the weight of evidence.”

We have seen a dramatic improvement in our services, provided by the private sector. The Labour party is so opposed to the private sector and everything it stands for that it wants to destroy it, on the back of our seeing one of the most successful turnarounds of the rail industry in this country.

[Christopher Pincher (Tamworth) (Con)]

T3. I am grateful to the Minister of State for meeting me to discuss problems at the A5 Wall island, but while he is considering it will the people’s Minister ask the Highways Agency to look at the other end of the A5, the congestion from Tamworth to the M42—congestion made worse by more traffic trying to merge on to the A5 from Pennine way?

--- Later in debate ---

[Kerry McCarthy (Bristol East) (Lab)]

T7. I hope that the Minister will have been given notice by Baroness Kramer’s office that she is due to sign off £200 million-worth of funding for a bus rapid transit scheme in Bristol. I am very keen for the overall scheme to go ahead, but we have real concerns about one particular element of it in my constituency. Will the Minister tell me whether it is too late to seek alternatives to that element, which would ruin a wonderful community food project on my patch?

[Mr McLoughlin]

If I am correct, the hon. Lady is talking about the opposition to the M32 bus-only junction. It is not for the Government to determine the design of the scheme, which is being promoted by the local authority as it knows the area best. Local authorities should listen to the campaigns led by local Members of Parliament relating to that scheme, to see whether the concerns can be addressed, but it would be difficult to change the scheme at this late stage and I know that the hon. Lady would not want to put it in danger of not being signed off in the next few days.

[Robert Jenrick (Newark) (Con)]

T9. Ever since the Romans built the Fosse way and the Great North road through our town, road hauliers have been an integral part of Newark’s economy. However, those hauliers have had to compete with foreign competitors on an uneven playing field for too long. Will the Minister update us on the success of the HGV road user levy?

[Mr Stephen Hepburn (Jarrow) (Lab)]

T10. Sadly, but unsurprisingly, the Government ignored the views of the people of the north-east when they ploughed ahead with the privatisation of the east coast main line. Will they back the wishes of the people of the north-east in introducing a quality contract scheme for the operation of our bus services, so that the buses can be put into the people’s hands and taken out of the hands of profiteers?

[Mr McLoughlin]

The simple fact is that we will see fantastic benefits from the new operation on the east coast main line. We will see more services to towns that have not been served before, and more services to the north-east. One of the things I was keen to do last week, in relation to the invitation to tender and to the north-east, was to consign the Pacer trains to the rubbish heap. It is important to get rid of them, and that is something that this Government, unlike the last Government, will deliver on. The bus scheme for Newcastle and the north-east is currently before the Department, and it would be inappropriate for me to take a view on it at this time.

[Several hon. Members]

rose—

Transforming the North's Railway

Lord McLoughlin Excerpts

Friday 27th February 2015 Written Statements

[The Secretary of State for Transport (Mr Patrick McLoughlin)]

A transformation in transport connectivity between the cities of the north is vital to realising their potential to become a “northern powerhouse” for the UK's economy.

On 27 October 2014, the Government set out how they intended to work with Transport for the North, Network Rail and the Highways Agency to develop a new transport strategy for the north.

A central plank of this work is improving the railways connecting the northern cities. As announced by the Prime Minister and the Chancellor, this includes the development of proposals for HS3, a high speed rail link designed to cut journey times between these great cities, boosting businesses and creating more jobs and security for hard-working people.

This work continues apace, and it remains the Government’s intent to publish an interim report shortly.

In the meantime, I am pleased to inform the House that I published today the invitations to tender for the next Northern and TransPennine Express rail franchises.

I have also published today “Transforming the North’s Railway”, a stakeholder briefing document that sets out the Government’s response to the consultation on the two franchises that took place from June to August 2014.

These publications mark an important first step in the transformation of the train services in the north of England to support economic growth. More people than ever are using the north’s railways, and the demand for travel by rail into our great northern cities is predicted to grow into the future. Passengers, businesses, local communities and their representatives across the north told us that railway services must be revitalised and expanded upon under the new franchises in order to be fit for the (21^st) century and to achieve our vision for the “northern powerhouse”.

The Government have listened carefully to those views. The invitations to tender published today, the result of the Government’s collaborative work with Rail North, representing local transport authorities across the north, require the shortlisted bidders for the two franchises to start on the journey of transformation that is needed.

This includes

a modernised fleet of Northern trains, including full replacement of the unpopular Pacers and the introduction of 120 new-build vehicles by 1 January 2020

more frequent services, including on Sundays

more seats at the busiest times

dedicated funding for investment in Northern’s stations

significantly increased funding for community rail

challenging targets for increases in customer satisfaction

Wi-Fi capability on all trains, providing free connectivity where there is coverage

working in partnership with Network Rail to deliver the Government's £1 billion investment in the railway infrastructure of the north, including electrification and the northern hub

retention of the important direct link between South Humberside and Manchester Airport.

To complement a rejuvenated northern franchise that serves the interests of its passengers and local communities, the Government’s vision is that TransPennine Express becomes the inter-city rail operator for the north, operating fast, high-quality inter-regional services, with a strong focus on serving its customers well.

Shortlisted bidders for the TransPennine Express franchise have until 28 May 2015 to submit their bids. For Northern, the deadline is 26 June 2015.

It is anticipated that the new franchises will start in April 2016. Franchise management will be carried out by a joint Rail North Ltd - Department for Transport team based in West Yorkshire Combined Authority’s offices in Leeds under a partnership agreement with my Department, which we expect to complete soon.

[HCWS318]

Oral Answers to Questions

Lord McLoughlin Excerpts

Thursday 22nd January 2015 Commons Chamber

[Andrew Jones (Harrogate and Knaresborough) (Con)]

8. What financial assistance he is providing to local authorities to repair potholes.

[The Secretary of State for Transport (Mr Patrick McLoughlin)]

Potholes are a menace to all road users and that is why this Government are taking action. I announced in December 2014 that we are allocating just under £6 billion for councils in England to tackle potholes and improve local road conditions over the next six years. This funding is on top of the £4.7 billion we have provided since 2010.

[Sir David Amess]

Unfortunately, I receive lots of complaints about the state of local roads. I do understand that repairing potholes is very expensive, and I commend last week’s national pothole week. Despite the present strains on the economy, I ask my right hon. Friend that sufficient funds be made available so that local roads in Southend are kept in good order.

[Mr McLoughlin]

I pointed out in my announcement that Southend-on-Sea would get £7.3 million over the period I have just referred to. Despite the financial situation we found ourselves in when we entered government, we allocated 27% more for road repairs in this Parliament than the previous Government did in the last Parliament.

[Andrew Jones]

North Yorkshire has one of the biggest networks of rural roads in the country, and we are very grateful for the extra cash the Government have provided to help. Rural areas often have a large road network, supported by the small tax base of the rural population. Can the impact of rurality be better reflected in funding for future repairs to our road network?

[Mr McLoughlin]

I certainly understand the point my hon. Friend makes—indeed, I have a large rural constituency that has many similar problems. It is up to the highways authority to look after its entire network fairly. Account is taken of rurality and road usage in the various highways authorities when we allocate this money to them.

[Damian Green (Ashford) (Con)]

15. In Kent, we are grateful for the £142 million we are receiving from the highways maintenance fund. Will the Secretary of State join me in urging not just the highways authority but Kent county council to pay particular attention to rural roads in Kent? They have suffered terribly in recent winters and are in desperate need of this extra support.

[Mr McLoughlin]

My right hon. Friend rightly points out the allocation that has been made to Kent. As I said, in this Parliament we have increased by 27% what the previous Government spent on road maintenance, and in December I announced another funding increase of more than 20%. I hope that we see a fair sharing of it across the whole of the community—in both urban and rural areas.

[Duncan Hames (Chippenham) (LD)]

The extra £86 million allocated to fix and improve Wiltshire’s roads over the next six years is very welcome. What steps is the Secretary of State taking to ensure that this is indeed additional money spent on our roads and that councils do not use it to top up their reserves, or displace money that otherwise would have been spent on roads to meet other spending pressures?

[Mr McLoughlin]

Overall, local authorities do take their highway maintenance projects seriously. I point out to the hon. Gentleman that one cannot argue for localism and then argue all the time for central direction. However, I very much hope that all authorities that have been allocated the money spend it on the roads. Some other funds are available, and we will judge what local authorities have done regarding how those funds are distributed.

[Miss Anne McIntosh (Thirsk and Malton) (Con)]

2. What plans he has to provide funding for dualling of the A64.

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[Michael Fabricant (Lichfield) (Con)]

7. What progress the Government have made in increasing access for disabled people at railway stations.

[The Secretary of State for Transport (Mr Patrick McLoughlin)]

As well as access improvements delivered as part of projects such as Crossrail and the upgrade of Birmingham New Street station, Access for All has now completed 139 step-free routes and smaller scale access improvements at more than 1,100 stations. To build on this success we have allocated an additional £160 million to extend the programme until 2019.

[Michael Fabricant]

I know that my right hon. Friend is very familiar with Lichfield Trent Valley railway station. I have plodded with him over the footbridge to try to get to the southbound access on the west coast main line while carrying heavy bags. Two platforms at Lichfield Trent Valley are not accessible by disabled people, or people with heavy bags. When will that change?

[Mr McLoughlin]

My hon. Friend may have plodded; I think I sprinted because I was late for the train. The simple fact is that, as he well knows, Network Rail is designing the project and is expected to start on site in the summer of 2016, which will, I hope, address some of the problems for his constituents that he has just outlined.

[Mr Speaker]

I was just reflecting on the alluring image of the Secretary of State sprinting.

[Mrs Cheryl Gillan (Chesham and Amersham) (Con)]

Physically disabled passengers and mothers with prams, for example, arriving at Amersham station have no real means of exiting the station. Work on the lifts was started and some groundwork was done, but it was taken out. The Secretary of State must know that Amersham station comes under Transport for London, and my constituents have no vote for that London authority, which has just received an extra £75 million additional funding to make the network accessible. What support can he give to me and my constituents, and campaigners such as Chesham and district transport users group, in getting this vital step-free access installed at Amersham station?

[Mr McLoughlin]

I am concerned if work that has been started on a project has not been completed. I will contact Sir Peter Hendy of TfL and write to my right hon. Friend.

[Andy McDonald (Middlesbrough) (Lab)]

Last week, a disabled passenger at Middlesbrough railway station was trapped on platform 2 because of the failure of the lift and had to travel to Saltburn at the end of the line to get to platform 1. Will the Under-Secretary of State for Transport, the hon. Member for Devizes (Claire Perry), encourage Network Rail to accelerate its programme of investment in Middlesbrough railway station, which is much overdue, and meet me to discuss the acceleration of the direct service from Middlesbrough to London? I wrote to her many weeks ago and I have not had a response.

[Mr McLoughlin]

I am sure that my hon. Friend the Under-Secretary will be more than willing to meet the hon. Gentleman. With regard to the particular problem that he described today, obviously, when a lift breaks down it creates problems. That can happen occasionally and I very much regret it when it does. I think that Middlesbrough station will benefit from the new franchise that we have let, with more services coming to London.

[Mike Thornton (Eastleigh) (LD)]

At Hedge End railway station in my constituency there is the absurd situation whereby someone who is disabled has to travel in the opposite direction in order to cross in a lift and travel back to reach their destination, adding considerable time and inconvenience to the journey. Investment in a lift at that station has been refused on the ridiculous basis that not enough people use the station as a whole. Surely we should give priority to the needs of a disabled person,

[Mr McLoughlin]

I accept that there is a huge job to be done on Access for All. The programme was due to end in 2015 and we have extended that. As I say, 1,100 stations have already been served, but I am always interested to hear of other applications and positions on various stations. We have tried to concentrate on the busy stations.

[Mr Gordon Marsden (Blackpool South) (Lab)]

If, as we have heard, the Government’s progress on rail access for disabled people has been questionable, what is their record on disabled access on buses? Twice last year Ministers ducked questions from me in the Chamber on why they are blocking mandatory bus staff training, as the Select Committee and disabled groups have urged. Then in a letter last May they proposed to review the matter again shortly, but eight months later nothing has happened. They are also ducking pressing bus operators to expand audio-visual technology, and instead they have school students competing to design a cheap alternative. Will the Minister confirm that the winning idea is to be announced only three weeks before Parliament dissolves? What message does all this buck-passing send to disabled people using our buses?

[Mr McLoughlin]

I am sorry the hon. Gentleman feels that way about access for disabled people. It is a matter that I take very seriously, and it is right that we do so. There is obviously a big problem in upgrading to allow access for all right across the public services but, as I pointed out, we have invested quite a lot of money. On his more detailed questions about bus access, I will write to him.

[Mr Robert Syms (Poole) (Con)]

On disability, the abolition of the tax disc has been a challenge to local authorities, which want to know who is exempt from parking charges. The Driver and Vehicle Licensing Agency was going to give information to local authorities about who was exempt, but because of complaints about it giving information about people on benefits and with disabilities, it has stopped doing so. Many of my constituents now have to pay or are being fined and have to fight with local authorities to avoid paying a £60 or £100 fine. Can we sort this out, as it is causing undue stress to many disabled people?

[Mr McLoughlin]

I will look into the points that my hon. Friend makes, which have not been made directly to me before. I am sure we can sort it out.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

9. What assessment he has made of the recent performance of train services on the great western main line.

--- Later in debate ---

[Mrs Linda Riordan (Halifax) (Lab/Co-op)]

T1. If he will make a statement on his departmental responsibilities.

[The Secretary of State for Transport (Mr Patrick McLoughlin)]

Last week I introduced an extensive package of compensation and assistance for property owners along the London to Birmingham High Speed 2 route. That will look after the people who live along the HS2 route while balancing this with our responsibility to the taxpayer. People will also be helped by HS2’s new residents charter and the appointment of a residents commissioner.

[Mrs Riordan]

I am sure that the Secretary of State will agree that Pacer units are not fit for purpose and that Halifax passengers deserve new rolling stock. Will he now put a definite date on when we will get those much-needed trains?

[Mr McLoughlin]

Thanks to the support I have had from the Chancellor and the Prime Minister, I hope that we can move to a position of replacing the Pacers. They have certainly outlived their useful purpose, and I know that many people want them replaced, as do I, the Chancellor and the Prime Minister. It is a pity we have had to wait so long and that 13 years were wasted.

[Robert Jenrick (Newark) (Con)]

T2. Tomorrow I will visit Abbott and Co. of Newark, a fourth-generation local business that has been manufacturing boilers and fittings for British vessels flying the red ensign since HMS Warrior in the 1860s. What more are the Government doing to support the maritime sector given its importance to the economy?

--- Later in debate ---

[Michael Dugher (Barnsley East) (Lab)]

Last week the “Buses in crisis” report from the Campaign for Better Transport revealed that since 2010 more than 2,000 bus routes have been cut and bus fares have risen by 25% on average—five times faster than the rise in average wages—while bus companies continue to make big profits and big bonuses for people at the top. Why will not the Government back Labour’s proposals to legislate to give London-style powers to city and county regions in England, which would give passengers the power to control fares, set routes and integrate services? If it is okay for Boris, then why not the same powers for Bristol, Birmingham, Bedford, Brighton, Burnley, Bradford, Burton, Blackpool and Barnsley?

[Mr McLoughlin]

I do not know quite where the hon. Gentleman gets his facts from. Between 1997 and 2010, the annual average increase in English bus fares, in real terms, was 2.25%, whereas between 2010 and 2013 the increase was 1.5%, so there was a lower increase under this Government than during the whole period of the previous Government. The simple fact is that buses play a very important role in offering transport opportunities both to younger people and older people. That is why we have kept, and will keep, concessionary bus fares for older people.

[Sir David Amess (Southend West) (Con)]

T3. Are Ministers aware that, every time residents complain to me about cyclists recklessly and dangerously riding their bikes on pavements, the police refer me to section 72 of the Highways Act 1835? Do they agree that that legislation is somewhat outdated, because in terms of its effectiveness it is absolutely useless?

[Bridget Phillipson (Houghton and Sunderland South) (Lab)]

T6. The Secretary of State backs greater transport powers for Greater Manchester, yet for the past four years his Department has refused to support a similar quality contract scheme for buses across Tyne and Wear. If it is good enough for Greater Manchester, why is it not good enough for us in Tyne and Wear?

[Mr McLoughlin]

We have done a deal with Greater Manchester that involves it having a mayor, which is an imaginative way forward. I look forward to seeing how the scheme will work.

--- Later in debate ---

[Julie Hilling (Bolton West) (Lab)]

The Prime Minister has said that the Pacer trains are going, but the Treasury has said it will only encourage bidders, so will the Secretary of State give a guarantee that all Pacers will be replaced and a date for when that will happen?

[Mr McLoughlin]

I am pleased that we are making progress that was not made between 1997 and 2010. We are making huge investments in trains and I am very pleased about that. The invitations to tender will be issued shortly and I hope to be able to say more about it then.

[Mr Alan Reid (Argyll and Bute) (LD)]

T5. The Department for Transport is consulting on removing the MOT exemption for HGVs based on Bute, Islay, Mull and Tiree, but the exemption is there for a very good reason: there are simply not enough HGVs on those islands to justify the cost of an authorised testing facility and the cost of taking an HGV to the mainland is very high. Will Ministers please stop this burden on island businesses?

--- Later in debate ---

[Damian Green (Ashford) (Con)]

T8. The problems in the channel tunnel have led to the use of Operation Stack on the M20, which, as ever, is causing huge disruption to traffic in my constituency and across Kent. What progress is being made in finding an off-road solution to parking trucks when they cannot get across the channel?

[Mr McLoughlin]

Following the disruption this week, we obviously need to look at and investigate that matter further. I am more than happy to meet my right hon. Friend and the relevant authorities to discuss what solutions there may be should it happen again in the future.

[Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)]

Local councils and parties up and down the east coast from Aberdeen and Edinburgh to London have come together in the Consortium of East Coast Main Line Authorities with a plan for comprehensive improvements to infrastructure and trains on the east coast main line. Will the Secretary of State look at those proposals? Does he accept that improvements to the east coast main line are an essential complement to High Speed 2, not an alternative?

[Mr McLoughlin]

I am certainly happy to look at the proposals. We are making huge progress with the IEP trains—we are making a dramatic increase in investment on that line—but I am always willing to look at reasonable proposals to improve services for our constituents.

[Paul Uppal (Wolverhampton South West) (Con)]

T9. Since 2005, the number of passengers visiting Wolverhampton station has more than doubled. Recent passenger survey returns show that the service is poor, particularly at peak times. Will the Secretary of State meet me and investors in the station to talk about the specific issues of extended leases and facility charging so that Wolverhampton station can get its new station and we can complete the interchange project?

[Mr McLoughlin]

When I went back to Wolverhampton station in my early days as Secretary of State, I said that it had not changed much since I used it as a small young person. I said that it was not very good then, and had not improved very much since. I am more than happy to meet my hon. Friend to discuss that problem. I would however say that there are some major station improvements in the west midlands, not least at Birmingham New Street. It is about time that such improvements moved up to Wolverhampton.

[Kate Green (Stretford and Urmston) (Lab)]

I wrote to the Secretary of State before Christmas about the Trafford Park Metrolink extension and ITV’s concerns that noise from trams on the route in front of the set of “Coronation Street” may cause difficulties with filming. While ITV and Transport for Greater Manchester argue, I am sure that he agrees with me that anything that might delay progress in getting the extension built would be very regrettable. What can he do to help to unblock the situation?

[Mr McLoughlin]

I am not aware of the hon. Lady’s letter. I will certainly seek it out and see whether I can address the problems. From memory, the tram runs at the bottom of the set of “Coronation Street”; at least, that is what we are shown.

[Stuart Andrew (Pudsey) (Con)]

Will my right hon. Friend update the House on progress with connectivity to Leeds Bradford airport? The prospect of a link road is of great concern to many of my constituents. Surely an effective contribution to the northern economic powerhouse would be for one of the largest airports in the north to be connected to the rail network.

--- Later in debate ---

[Jeremy Lefroy (Stafford) (Con)]

Will my right hon. Friend work with Staffordshire county council to tackle the long-term congestion problems in and around Stafford that are caused by, among many reasons, diversions from the M6 when it is blocked?

[Mr McLoughlin]

As a former member of Staffordshire county council, I am certainly content to work with that excellent county council to see whether we can address some of the problems to which my hon. Friend has referred.

HS2 (Phase 1 Property)

Lord McLoughlin Excerpts

Friday 16th January 2015 Written Statements

[The Secretary of State for Transport (Mr Patrick McLoughlin)]

I am today announcing to the House the Government’s package of measures to provide assistance to owner occupiers along the line of route for Phase One of the High Speed 2 project (from London to the West Midlands). This is the final outcome of two consultations;

the Property Consultation 2013, on which the decision was announced on 9 April 2014; and

the Property Consultation 2014, which ran from 8 July to 30 September 2014 and on which the decision is announced today, (http://www.gov.uk/government/speeches/hs2-phase-one-property-consultation-2014).

I can announce today that the proposal for the alternative cash offer (now named the cash offer) and homeowner payment will be introduced. These schemes aim to help maintain the cohesion of communities along the route of Phase One of HS2 and provide an early share of the benefits.

I can also announce that from today HS2 Ltd will accept applications for voluntary purchase, the cash offer and the need to sell schemes. These schemes supplement those launched earlier this year, namely express purchase and rent back. The result is an exceptional package of measures for an exceptional project. Over 2500 dwellings are within the express purchase area, rural support zone (within which the voluntary purchase and cash offer schemes are available) and homeowner payment bands. In addition, the need to sell scheme will independently consider applications regardless of the distance from the railway.

Therefore, the full package available to people is as follows:

Express purchase—is for those people living closest to the line, in what is known as the “surface safeguarded” area. Under this scheme owner-occupiers may be able to sell their home to the Government, if they wish to do so at its full unblighted market value (as it would be if there were no plans for HS2), plus 10% (up to £49,000) and reasonable moving expenses, including stamp duty.

Voluntary purchase— for people in rural areas outside the safeguarding area and up to 120 metres away from the line (this is the area defined as the rural support zone). Owner-occupiers in this area will be able to sell their home to the Government for its full unblighted value at any time up until one year after Phase One first opens for public use.

The cash offer— (known as the alternative cash offer during the consultation). This gives rural owner-occupiers within the rural support zone two measures to choose from, if they wish: selling their property to the Government for its full unblighted market value under the voluntary purchase arrangements described above or remaining in their home and receiving 10% of that value. This payment is a minimum of £30,000 and is capped at £100,000. This scheme will be available until one year after Phase One first opens for public use.

The need to sell scheme—this scheme does not have a boundary and is available to owner-occupiers who have a compelling reason to sell their house (for example this might be as a result of job relocation or ill health) but are unable to do so because of HS2. The Government will pay the full, unblighted value for these properties. This scheme replaces the Phase One exceptional hardship scheme (EHS) and those EHS applications that have not been consider by the panel will automatically be transferred to the need to sell scheme. This scheme is available in both urban and rural areas.

The homeowner payment scheme— will give rural homeowners outside the voluntary purchase area but within 300 metres of the line the opportunity to share early in the benefits of HS2. These payments will be available following Royal Assent of the hybrid Bill for Phase One and will be tapered as follows: owner-occupiers between outside the rural support zone and within 180 metres of the centre line of the railway will receive £22,500, those beyond this and within 240 metres £15,000 and those beyond this and within 300 metres £7,500.

The express purchase, voluntary purchase and need to sell schemes are all accompanied by a voluntary rent back option: owner-occupiers who, having sold their property to government would prefer to carry on living there may be able to rent it back, subject to property suitability checks.

In addition, as part of the desire by HS2 Ltd to improve communication with residents and communities near to the route of the railway, it has been agreed that a residents’ charter will be introduced. This will help to ensure that residents are treated in a fair, clear, competent and reasonable manner. It will embrace a number of key principles:

Discretionary property packages will be communicated clearly, in the plainest, non-technical language possible.

Individuals will be offered a single named case officer.

Individuals will be offered the opportunity to meet in private with a property specialist from HS2 Ltd to explain the discretionary and statutory measures.

HS2 Ltd will commit to a reasonable response time for all property related enquiries.

Today I am pleased to announce that the charter goes live and that Deborah Fazan has been appointed as the Residents’ Commissioner to oversee the charter and ensure the above principles are adhered to.

This package of measures will be administered by HS2 Ltd under these guiding principles and will signal the beginning of a new relationship with the communities along the route of Phase One of HS2.

I will place copies of the related documents in the Libraries of both Houses.

It is also available online at: http://parliament.uk/writtenstatements.

[HCWS198]

Rail in the North: Rolling Stock

Lord McLoughlin Excerpts

Thursday 8th January 2015 Written Statements

[The Secretary of State for Transport (Mr Patrick McLoughlin)]

My Department has reached agreement with TransPennine Express and Northern Rail on plans to maintain and increase capacity on key routes and these plans will offer extra rolling stock for the north of England.

Rail services across the north are vital for passengers and for the economy. By helping people access work and leisure more easily, we are securing long-term economic growth across the region.

That is why my Department has worked hard with Northern and TransPennine Express to reach an agreement which means that existing rail services will continue, from May 2015. This follows a decision by rolling stock leasing company Porterbrook to move Class 170 diesel trains running on the Northern and TransPennine Express routes to the Chiltern franchise.

In addition, the Department for Transport has taken this opportunity to secure benefits for passengers and has reached agreement with the operators of the two franchises to offer more carriages and seats, increasing capacity on a number of routes in the North, including between Blackpool and Manchester and into and out of Sheffield in the peaks.

Northern Rail will also be increasing capacity on the Cumbrian coast line and will be finalising details on this shortly. I will make a further statement on this in due course.

[HCWS175]

Transport

Lord McLoughlin Excerpts

Wednesday 7th January 2015 Ministerial Corrections

[Mr Simon Burns (Chelmsford) (Con)]

Does my right hon. Friend accept that the investment in financial terms and in the work done on improving and upgrading our rail network is warmly welcomed, but that the other side of coin is that there is a responsibility through Network Rail to ensure minimal disruption to commuters and passengers—not simply during key holiday periods but on every other weekend of the year—who too often hear on a Monday morning about the overrunning of engineering works and cancelled services? What can be done to hold Network Rail more to account to minimise such problems?

[Mr McLoughlin]

I agree with my right hon. Friend. The problem happens when we are doing the sort of massive upgrade to the system that we are doing. Over the five-year period between 2014 and 2019, some £38.5 billion will be spent on upgrading the railway infrastructure, and some of that will lead to delays through overrunning engineering works. I know that particular problems have affected my right hon. Friend’s constituency over some weekends, and I think we should look further to see whether there is a better way of doing the engineering work. Let me point out that 18 months ago, over a period of eight weeks, Nottingham station was closed down while 2,000 people were working on it. That is sometimes an option, but when we are talking about the main London termini, that is really not an option.

[Official Report, 5 January 2015, Vol. 590, c. 26.]

Letter of correction from Mr McLoughlin:

An error has been identified in the answer I gave to my right hon. Friend the Member for Chelmsford (Mr. Burns).

The correct response should have been:

[Mr McLoughlin]

I agree with my right hon. Friend. The problem happens when we are doing the sort of massive upgrade to the system that we are doing. Over the five-year period between 2014 and 2019, some £38 billion will be spent on upgrading the railway infrastructure, and some of that will lead to delays through overrunning engineering works. I know that particular problems have affected my right hon. Friend’s constituency over some weekends, and I think we should look further to see whether there is a better way of doing the engineering work. Let me point out that 18 months ago, over a period of eight weeks, Nottingham station was closed down while 2,000 people were working on it. That is sometimes an option, but when we are talking about the main London termini, that is really not an option.



An error has been identified in the answer I gave to the hon. Member for Wrexham (Ian Lucas).

[Ian Lucas (Wrexham) (Lab)]

We have heard much rhetoric from the Secretary of State about additional investment in the railways. In December, did not his Department, under his direction, cancel the investment in phases 1 and 2 of modular signalling improvements in north Wales? Will he confirm that he has authorised that?

[Mr McLoughlin]

What I will confirm is that we are investing some £38 billion in the railways, which is more than any previous Government have invested. In 13 years, Labour electrified 10 miles of track. We will be electrifying more than 800 miles, which is a record of which this Government are incredibly proud.

[Official Report, 5 January 2015, Vol. 590, c. 33.]

The correct response should have been:

[Mr McLoughlin]

What I will confirm is that we are investing some £38 billion in the railways, which is more than any previous Government have invested. In 13 years, Labour electrified 10 miles of track. We will be electrifying more than 850 miles, which is a record of which this Government are incredibly proud.



An error has been identified in the answer I gave to the hon. Member for Denton and Reddish (Andrew Gwynne).

[Andrew Gwynne (Denton and Reddish) (Lab)]

What lessons has the Secretary of State learned from this sorry episode over the Christmas period? Does he recognise that the frustration comes not just from cancellations and long delays but from the complexity of the compensation system, with different train companies applying different terms and conditions? There are also times when people end up on a rail replacement bus having paid top fares for a rail journey.

[Mr McLoughlin]

The hon. Gentleman asks a number of questions. I will try to answer them all. The new franchises I am issuing have changed the way in which compensation is awarded, and they are a great improvement on those awarded by the previous Government. He also asked me about bus replacement services. If he wants us to carry out improvements on the network, alternatives have to be made available. I accept that our changes and improvements are an issue, but we are investing a record £38.5 billion in the railways between 2014 and 2019.

[Official Report, 5 January 2015, Vol. 590, c. 34.]

The correct response should have been.

[Mr McLoughlin]

The hon. Gentleman asks a number of questions. I will try to answer them all. The new franchises I am issuing have changed the way in which compensation is awarded, and they are a great improvement on those awarded by the previous Government. He also asked me about bus replacement services. If he wants us to carry out improvements on the network, alternatives have to be made available. I accept that our changes and improvements are an issue, but we are investing a record £38 billion in the railways between 2014 and 2019.



An error has been identified in the answer I gave to the hon. Member for Kingston upon Hull North (Diana Johnson).

[Diana Johnson (Kingston upon Hull North) (Lab)]

After the Christmas shambles, I was pleased to see that the chief executive of Network Rail voluntarily said that he would not take his bonus of £34,000. Has the Secretary of State considered introducing performance-related pay for rail bosses, in the same way as his Government advocate it for teachers?

[Mr McLoughlin]

I do not think I will take too many lessons from the Labour party about bonuses. In 2009-10, the bonuses paid to Network Rail were £2.3 billion; this year, it was going to be £260,000. I think there should be carrots and sticks, and, if the criteria set are met, a bonus is a way of rewarding the people directly involved in providing services.

[Official Report, 5 January 2015, Vol. 590, c. 36.]

The correct response should have been:

[Mr McLoughlin]

I do not think I will take too many lessons from the Labour party about bonuses. In 2009-10, the bonuses paid to Network Rail were £2.3 million; this year, it was going to be £260,000. I think there should be carrots and sticks, and, if the criteria set are met, a bonus is a way of rewarding the people directly involved in providing services.

Rail Network (Disruption)

Lord McLoughlin Excerpts

Monday 5th January 2015 Commons Chamber

[Michael Dugher (Barnsley East) (Lab)]

(Urgent Question): To ask the Secretary of State for Transport to make a statement on the major disruptions to Britain’s rail network over the Christmas period.

[The Secretary of State for Transport (Mr Patrick McLoughlin)]

As I made clear at the time, the disruption at King’s Cross and Paddington after Christmas was totally unacceptable. Passengers deserve a reliable rail service, they deserve clear information, and they deserve rapid help when things go wrong. I am sorry that in this case they did not get those things.

Before I give the House further details of what happened, I wish to pay tribute to the 11,000 engineers who were working on the track across the country over the holiday period on 300 projects at some 2,000 work sites, often in difficult conditions—a record level of activity and investment and part of the £38 billion being invested in our railways by this Government, working to create capacity, increase reliability and make our railways safer. The vast majority of complex projects were completed on time. For instance, a vital new flyover opened today at Reading—a complex scheme on time and on budget—and London Bridge reopened after key work on the Thameslink programme which will continue for some time. When things go wrong, however, we expect the industry to have proper contingency plans, so let me turn to what happened at Christmas and what is being done to put them right.

First, at King’s Cross, Network Rail had in place a vital scheme to replace and modernise some seven sets of points and crossings, and associated track and overhead wiring. It involved the replacement of more than 1 km of track, some 12,000 tonnes of ballast and 14 dedicated engineering trains. That work needed to be done and was planned for Christmas to limit impact. It had been planned that two lines would be opened on 27 December to operate a limited service in and out of King’s Cross, but some elements of the work took longer than expected. A decision was taken to run an alternative service terminating at Finsbury Park. As a result, many passenger journeys were seriously delayed and disrupted. The planned modified services were able to restart on Sunday 28 December.

Secondly, at Paddington, work on signalling was intended to allow lines to reopen in the morning. Safety testing meant that trains were able to operate only as far as Ealing Broadway until mid-afternoon. Neither of those situations should have occurred. It is inevitable that major investment in the railways will, from time to time, mean some disruption, but all of us who use the railways need Network Rail to complete such vital engineering works on time, as were most of its other schemes. Let me turn now to the response.

I worked closely with Network Rail on the day and afterwards, and I have left it in no doubt of the importance of getting this right. Mark Carne, the chief executive, ordered an urgent review of what went wrong. A report, which will be published, will be provided by the end of this week. One of the questions that needs to be answered relates to the timing of its major works programmes. The industry’s conventional wisdom is that it is generally better to carry out major disruptive work over holiday periods when passenger numbers are lighter than usual. The Office of Rail Regulation is conducting its own parallel investigation, which will determine whether any regulatory enforcement action is required and ensure that lessons are learned. It will work closely with Passenger Focus.

I and my officials were briefed on key elements of Network Rail’s engineering programme and the associated planned changes to services. We were not, however, involved in planning for the operational aspect of the works programme or the contingency planning. That is as it should be. Network Rail is an operationally independent body and it needs to be able to get on with its job without political interference. If it gets things wrong it will be held to account. We have made it clear to the company that we expect it to deliver the outcomes for which it has been funded over the current control period, including the largest programme of investment since the Victorian era and a reliable daily service. When services do not run as planned, passengers are entitled to be reimbursed if they are delayed significantly. Train operators have compensation schemes in place. In the new franchises, we are improving compensation compared with that left by the previous Government.

Things should have been done better. I have set out my understanding of the events at King’s Cross and Paddington after Christmas. The level of disruption is wholly unacceptable and I am confident that Network Rail will learn the necessary lessons to minimise the chances of it happening again.

[Michael Dugher]

In his new year message, the Prime Minister said that Britain faced a choice between competence or chaos. Ministers at the Department for Transport clearly did not get the memo, because at Christmas we saw both chaos and incompetence on our rail network, resulting in misery for passengers who have seen their fares rocket by more than 20% since 2010—three times faster than the growth of wages. The recent chaos all started with the Secretary of State’s decision to allow a near shutdown of train services on Boxing day, letting 17 operators run no service whatever with vastly reduced services everywhere else. The next day, work overran at more than 200 engineering sites, resulting in thousands of passengers facing appalling disruption.

It was right that Network Rail accepted its responsibilities, and so too should the contractors, but is it not also time for the Secretary of State finally to face up to his share of the responsibility? The Office of Rail Regulation published a damning report back in November on Network Rail’s performance. Was this report not a massive warning sign for Ministers that there would be serious delivery challenges associated with the planned maintenance work over Christmas? What assurances were sought by Ministers on whether the plans for the Boxing day shutdown were robust enough, whether adequate contingencies were in place and whether there was sufficient resilience in the system to ensure that continued disruption would not run into the weekend?

Where were Ministers during the rail chaos? They were AWOL. It was only after days of disarray that the Secretary of State finally put down his selection box and leapt to action, releasing a statement on the Saturday evening in a desperate attempt to shift the blame entirely on to others. On Sunday morning, the rail Minister, the Under-Secretary of State for Transport, the hon. Member for Devizes (Claire Perry), sent a message to the thousands of passengers who had had their Boxing day and weekend ruined. What words of sympathy and consolation did she offer? She said she was “so chuffed” with the state of the railways—Calamity Claire, the gift that keeps on giving.

These problems happened on this Government’s watch. The warning signs were there. The Secretary of State has spoken about the lessons that must be learned, but must they not be learned by Ministers too and an apology be made to the travelling public?

[Mr McLoughlin]

I am sorry the hon. Gentleman did not hear me apologise. I think his script was prepared before he heard my answer. I have made it fairly clear that what happened was unacceptable, whereas all we have heard from him is empty noise—from a party with no plan and no ideas, from a man who was special adviser at the Department for Transport when Railtrack collapsed and the network fell apart, from somebody who knows all about chaos, because that is exactly what he caused then. He called his predecessors “trainspotters” in the Daily Mirror, but now he pretends to know how to run the railways. I will not take too many lessons from him.

The hon. Gentleman says that fares have gone up by 20%, but in fact, in real terms, they have gone up by 3%, and this year’s rise was the lowest in a decade. It was his party in government that put them up by 42% in cash terms—a policy that we have ended. He said that Network Rail’s bonuses should reflect what has happened, and I agree, but will he add that the bonus payments agreed by Labour in 2009-10 were nine times this year’s figures?

[Michael Dugher]

Where was the Secretary of State over Christmas?

[Mr McLoughlin]

Where was I at Christmas?

[Mr Speaker]

Order. The precise details of how the Secretary of State spent his Christmas are a matter for him, as they are for each of us individually. He is answering good-humouredly and should be given the opportunity to continue.

[Mr McLoughlin]

It will not surprise you, Mr Speaker, that I spent Christmas in Derbyshire, and I was in constant touch with Network Rail. Yes, I issued a statement on the Saturday—let me take the hon. Gentleman through these things: Christmas day was a Thursday, the problem occurred on Friday and I spoke to Mark Carne on the Friday and the Saturday and have spoken to him several times since the incident.

As I said earlier, this was the biggest set of engineering works taking place over Christmas. Is the hon. Gentleman saying that the Secretary of State should tell Network Rail which safety aspects and bits of engineering works it should not do? Is that the kind of micro-management we could expect from him? He needs to read Labour’s last policy document before he was appointed—he is the third shadow Secretary of State I have encountered since becoming Secretary of State, and he obviously cannot keep up with what has been said before. Previously, Labour has said that the Secretary of State should not micro-manage the industry. I agree.

[Mr Simon Burns (Chelmsford) (Con)]

Does my right hon. Friend accept that the investment in financial terms and in the work done on improving and upgrading our rail network is warmly welcomed, but that the other side of coin is that there is a responsibility through Network Rail to ensure minimal disruption to commuters and passengers—not simply during key holiday periods but on every other weekend of the year—who too often hear on a Monday morning about the overrunning of engineering works and cancelled services? What can be done to hold Network Rail more to account to minimise such problems?

[Mr McLoughlin]

I agree with my right hon. Friend. The problem happens when we are doing the sort of massive upgrade to the system that we are doing. Over the five-year period between 2014 and 2019, some £38.5 billion will be spent on upgrading the railway infrastructure, and some of that will lead to delays through overrunning engineering works. I know that particular problems have affected my right hon. Friend’s constituency over some weekends, and I think we should look further to see whether there is a better way of doing the engineering work. Let me point out that 18 months ago, over a period of eight weeks, Nottingham station was closed down while 2,000 people were working on it. That is sometimes an option, but when we are talking about the main London termini, that is really not an option. [Official Report, 7 January 2015, Vol. 590, c. 1MC.]

[Mrs Louise Ellman (Liverpool, Riverside) (Lab/Co-op)]

Over Christmas too many passengers suffered twice—first from major disruption, when any contingency plan simply failed; and, secondly, from lack of information about what was going on. Does the Secretary of State believe that this was about individual events or was it indicative of a major problem with major works on the railways for which ministerial involvement was required?

[Mr McLoughlin]

I partly agree with the hon. Lady, and I know that her Select Committee will see both Mark Carne and Robin Gisby for a hearing next week. I am sure the Committee will pursue the matter with further questions. The truth of the matter is that there is no doubt that there was a failure to communicate with the passenger. The decision was an attempt in certain ways to help some passengers, but with hindsight Finsbury Park was never really an option for main trains to terminate, and perhaps that should not have been done. However, not to have done that would have meant cancelling at short notice many trains on which people were relying.

[Mr John Redwood (Wokingham) (Con)]

Some of my constituents were badly inconvenienced, and I would like to hear the Secretary of State’s confirmation that they can claim compensation, which would be some recompense. What else can be done to get it over to Network Rail that it needs to raise its standards of customer care, concern and efficiency, because it is still vastly inefficient by global standards?

[Mr McLoughlin]

I agree with my right hon. Friend. Compensation is something to which passengers are entitled if the delays were severe and over a certain period. That should happen. On the point about Network Rail overall, as I have said, a number of the projects undertaken have been completed successfully—not least one in Reading that affects my right hon. Friend’s constituency. Anyone using that line can see the huge investment, not just in the station but in the new viaduct, which will have a huge impact on reliability for my right hon. Friend’s constituents and others.

[Cathy Jamieson (Kilmarnock and Loudoun) (Lab/Co-op)]

I note that the Secretary of State said that, with hindsight, Finsbury Park was perhaps not the best option. Would it not have been better to have had some foresight and some contingency planning in relation to that?

[Mr McLoughlin]

As I have pointed out, most of the schemes with which Network Rail was involved were done on time and to schedule. Of course lessons will be learned from the incidents around Finsbury Park; I would expect them to be. This brings us back to whether during huge engineering works we want to close down the whole system or take action at a time that one hopes will be the least inconvenient for the vast majority of travelling passengers. I believe that this country’s railways and the people who work on them have seen the development of a hugely successful industry—moving from 750 million passenger journeys a year 20 years ago to 1.6 billion journeys last year. That should be regarded as a great success story.

[Sir Alan Haselhurst (Saffron Walden) (Con)]

Is not what is happening on my right hon. Friend’s watch a massive restoration and renewal of our railway system? That must carry more risk of delays, but experience shows that delays do not occur only at Christmas. Should Network Rail consider prescribing a rather longer period in which work should be completed? Passengers will at least be understanding if they are reasonably confident that there will be a return to normal service at a given date, and that they will not be as massively disrupted as they were this Christmas.

[Mr McLoughlin]

I agree with my right hon. Friend. It may be possible for that issue to be revisited by the inquiry that is being conducted by the Office of Rail Regulation, and the industry’s inquiry relating to the best time for big repair works to be carried out. In the past, the aim has always been to carry out repairs over the holiday period, because that disrupts fewer people. As I have said, there were works on nearly every section of the railway throughout the country: on the midland main line, on the Scotland, Anglia and Wales lines, at Reading, and on the west coast and east coast main lines, and a huge amount of work was also being done at London Bridge.

[Kelvin Hopkins (Luton North) (Lab)]

Following another rail crisis some six years ago, it was decided to take many engineering staff in house. Now similar problems have arisen, so it can only be that Network Rail’s management is at fault. Is it not time to seek a root-and-branch investigation of Network Rail’s management systems, and to look again at the much better methods of operation employed by British Rail before the disaster of privatisation?

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[Mr McLoughlin]

The hon. Gentleman is renowned for his rose-tinted glasses, which are now returning him to a period when there were 750 million passenger journeys a year. Last year there were 1.6 billion, and I regard that as a tremendous success. More people are using the railways in this country than have done so for many a generation. It is only the hon. Gentleman—along with, perhaps, other Members who are sitting with him on that Bench—who looks back with rose-tinted glasses to a period when everything was fine.

[Miss Anne McIntosh (Thirsk and Malton) (Con)]

Will my right hon. Friend explain from which budget the fines and compensation will be paid? Is it not perverse that the budget that should be paying for these very improvements is to be used to compensate the companies that have been inconvenienced? Will my right hon. Friend look very closely at the way in which the Office of Rail Regulation has operated since the changes were made, to establish whether it is fit for purpose and is holding Network Rail to account?

[Mr McLoughlin]

I think that the ORR does a good job in holding Network Rail to account, but I will of course take seriously what my hon. Friend has said about its performance. If she wants to send me further details of her complaints, I will certainly consider them.

[Jeremy Corbyn (Islington North) (Lab)]

As the Member who represents Finsbury Park, may I ask the Secretary of State to say a big thank you to all the staff who coped with an utterly impossible position on Saturday 27 December, when the station was so overcrowded with passengers? They deserve our recognition and thanks for the hard work that they do.

The Secretary of State will recall that we had a meeting in his office last year about the future of Finsbury Park station, where a piecemeal improvement has been taking place over many years. Does he not agree that there should now be a serious examination of the capacity problem at that station, given the increasing number of rail passengers, the dangerously overcrowded underground platforms, and a management mix between Transport for London and a train operator on the main line? Will he meet me again so that we can have a new discussion about Finsbury Park and the need for it to be improved?

[Mr McLoughlin]

I join the hon. Gentleman in thanking all the people who were involved in ensuring that the vast majority of the vast number of people who turned up at Finsbury Park were kept as informed as possible, in extremely difficult circumstances. This is certainly one of the issues in which I intend to take a further interest, and I shall be more than happy to meet the hon. Gentleman, possibly at Finsbury Park.

[Sir Nicholas Soames (Mid Sussex) (Con)]

I agree with my right hon. Friend about the successful implementation of a very large number of works. Nevertheless, what happened at King’s Cross was inexcusable, and—as will be discovered when the report is published—represents a failure of both management and leadership, with which I hope my right hon. Friend will deal.

May I also ask my right hon. Friend to turn his attention to the East Grinstead to Victoria line, which has been running with similar impediments and terrible inconvenience, largely because the rail companies cannot get enough people to drive the trains? Drivers are available, but they are apparently taking part in training courses. Things would be in a pretty pickle if British Airways did not have enough pilots, would they not?

[Mr McLoughlin]

I am grateful to my right hon. Friend for acknowledging some of the difficulties and the difficult conditions facing those engineers working over the Christmas period in getting, as I have said, most of the schemes they embarked on back up and running on time; so when things go wrong, it is particularly disappointing. As to his point about the East Grinstead line, I will look at that, along with the Under-Secretary of State for Transport, my hon. Friend the Member for Devizes (Claire Perry).

[Douglas Carswell (Clacton) (UKIP)]

I wrote to the Secretary of State in early December suggesting that Network Rail was incompetent, responsible for serial disruptions on the line to Clacton and East Anglia and unaccountable. Rather than make excuses and justify shoddy performance, will he consider serious, grown-up reform to make sure that this public quango is properly and meaningfully accountable to the long-suffering public?

[Mr McLoughlin]

There is unprecedented development on the railway network. I think that is absolutely vital, and I am very keen that a lot of the first-class pieces of engineering done by Network Rail continue to be done by Network Rail, along with the huge investment that we are making in the whole system.

[Ian Swales (Redcar) (LD)]

My constituents were caught up in the chaos on the east coast main line on the 27th, like so many others. They recall poor communication not just during their journey but in advance of it, for planning purposes. They were, of course, also caught up in the Finsbury Park chaos and held around Stevenage for anything up to two hours. What can the Secretary of State do to ensure that communication is improved and our public transport network is properly operational throughout holiday periods?

[Mr McLoughlin]

I do not want to keep on repeating myself. I have talked about the necessity of doing these big engineering projects over what is usually the less busy period, as opposed to creating the scale of disruption that would occur if they were done in the normal working week or at other times of the year. We will need to look at this; some of the suggestions from my right hon. Friend the Member for Saffron Walden (Sir Alan Haselhurst) made that clear. On communications, I wholly agree with the hon. Gentleman: the communications were not up to scratch in any way, shape or form, and the whole industry has got to try to address that.

[Alison Seabeck (Plymouth, Moor View) (Lab)]

The south-west was cut off from the UK last winter and Network Rail performed miracles in getting that line back up and running. I therefore find it extraordinary that reasons such as the weather have been used to excuse the chaos and incompetence of this debacle, particularly out of King’s Cross. Why did the Secretary of State feel that it was not necessary for Ministers to ask for a basic reassurance that an overrun on any of the big programmes could be managed? Why were contingency plans not in place, and why was the rail regulator warning not adhered to?

[Mr McLoughlin]

The hon. Lady is absolutely right about Network Rail re-establishing the Dawlish link last winter. I would say that that also came after some very bad weather, which created the problem, and some of the work on that coastal line is still ongoing, 12 months later. On the work that was taking place over this Christmas period, there were 2,000 locations nationwide and the vast majority of work was done on time and to the accepted standards. Two locations had particular problems, and we need to learn the lessons from them and make sure they do not happen again.

[Sir John Randall (Uxbridge and South Ruislip) (Con)]

I am grateful to my right hon. Friend for his remarks, and I agree with my right hon. Friends the Members for Chelmsford (Mr Burns) and for Saffron Walden (Sir Alan Haselhurst). One of the problems is that these works are not necessarily one-offs, and they are recognised only when they go wrong and not when they go well. My constituents in West Drayton will be pleased to know that they can get some compensation, but can the Secretary of State think of any way, perhaps from his previous incarnation, in which some incentivisation for Network Rail, whether by carrots or possibly sticks, might be useful?

[Mr McLoughlin]

I am not sure that thinking about a previous incarnation would serve me very effectively in my job as Secretary of State for Transport. I would point out to my right hon. Friend that the carrots are there, and that the Office of Rail Regulation might well be providing the sticks. It is right to record our recognition of the tremendous work that was done by many engineers across this period. As the hon. Member for Plymouth, Moor View (Alison Seabeck) has just said, last Easter most Members were praising Network Rail for the fantastic job it had done in restoring the Dawlish link.

[Caroline Lucas (Brighton, Pavilion) (Green)]

Does the Secretary of State accept that an underlying problem is the fragmentation of the railways, with no single guiding mind responsible for providing an integrated railway system? Will he look again at my Railways Bill, which precisely would create a coherent railway system and bring it back into public ownership? This is not about nostalgia. We have only to look at the success of the east coast main line. When East Coast was in public ownership, it delivered far greater public satisfaction than any of the other lines.

[Mr McLoughlin]

No.

[Stephen Hammond (Wimbledon) (Con)]

I join my right hon. Friend in congratulating Network Rail staff on the extraordinary maintenance programme and welcome his swift action in calling Network Rail to account. Will he assure the House that when Network Rail reports to him it will, first, ensure that the systemic failure at King’s Cross is not repeated and does not become endemic across the industry; and, secondly, that, as more services become operational, punctuality is improved?

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[Mr McLoughlin]

Network Rail will publish the report that has been ordered by the chief executive by the end of this week, in time for the appearance of the chief executive and Robin Gisby before the Transport Select Committee. My hon. Friend is absolutely right about the importance to commuters of the railway’s reliability.

[Clive Efford (Eltham) (Lab)]

The Secretary of State should have had a warning about these problems from Network Rail’s performance in the run-up to Christmas. If he had been travelling on Southeastern Trains, he would have suffered a great deal of disruption on several days during that period. If he had been on top of his game, he would have asked Network Rail about its capacity to manage the engineering schemes, but he failed to do so. What sanctions will he put in place so that the management of Network Rail can be held to account for their failures over the Christmas period?

[Mr McLoughlin]

I will go back to the Department and try to find the letter that the hon. Gentleman sent me warning me that the possibility of delays was so obvious. I think he is speaking with the benefit of hindsight, rather than having warned us about the delays beforehand. I travel on many different parts of the rail network, and I see the huge amount of work that is being carried out on it.

[Crispin Blunt (Reigate) (Con)]

The Southern commuters I represent in Redhill faced a total suspension of services into London Bridge between 20 December and 4 January. They now face three years of reduced service and today, the first day back, the service collapsed, apparently because of signal problems. At a public meeting with me, Southern undertook to explore how it could reduce the cost of season tickets for those long-suffering commuters over this period, but it is now hiding behind its relationship with the Department for Transport. Will the Secretary of State and the rail Minister work with me and Southern to find a way of ensuring that my commuters pay a fair price for a much reduced service?

[Mr McLoughlin]

London Bridge is going through one of the biggest transformations that any station is likely to go through. It has some 220,000 daily users, and this work cannot be undertaken without causing some disruption. Those of us who were using St Pancras station when it was experiencing disruption for many years will know that, at the end of the day, we ended up with a far better station. I accept my hon. Friend’s point about the in-between periods. The rail Minister and I will be more than happy to meet him and to talk through this programme, which is, as he says, going to go on for three years.

[Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)]

At what point was the Secretary of State aware of the contingency plan that Network Rail had put in place to funnel passengers to a clearly inadequate solution through Finsbury Park? Why were solutions such as using the Hertford loop or allowing commuters from north Yorkshire, Teesside and the north-east to use their tickets to go through St Pancras to Sheffield and Leeds, so that they could connect with Transpennine and other services, not examined?

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[Mr McLoughlin]

The hon. Gentleman makes a valid point. I was told of the difficulties on the Saturday afternoon. I spoke to Mark Carne then or at least on the Saturday evening—I would have to check that exactly, as I had several conversations with him over the Christmas holiday period. The hon. Gentleman’s point about re-routing on the Midland main line was interesting and I do want to check how the contingency arrangements were worked out, as I do not think they were worked out satisfactorily.

[Martin Vickers (Cleethorpes) (Con)]

As my right hon. Friend has said, the situation was inadequate and unacceptable. Does he agree that when such situations occur passengers want information quickly, but that an inadequate number of staff were available? Does he also agree, however, that rather than jump to conclusions, as the shadow Minister has, the best way forward is to await the various reports? Will my right hon. Friend assure us that he will act on their recommendations?

[Mr McLoughlin]

Indeed. I am grateful to my hon. Friend. I will not just get that report—he serves on the Transport Committee, along with the hon. Member for Liverpool, Riverside (Mrs Ellman), and I am sure it will also issue a report, which I will look at with great interest. The point just made by the hon. Member for Middlesbrough South and East Cleveland (Tom Blenkinsop) about communications in respect of alternative uses and other lines is valid.

[Ms Diane Abbott (Hackney North and Stoke Newington) (Lab)]

Is the Secretary of State aware that, specifically in relation to what happened at King’s Cross, the travelling public will not be impressed with his bland assertion that “some aspects” of the work were delayed? Does he know which aspects were delayed? Is he able to share that with the House? Does he accept that the travelling public, including those poor people caught up at Finsbury Park, feel that so long as Network Rail can get away with just saying, “Aspects of the work were delayed”, these delays will continue to happen?

[Mr McLoughlin]

I referred at the start of my statement to the seven points being changed at King’s Cross and the amount of work that was being done. The work over the Christmas period amounted to a £200 million investment—by far the biggest investment in the railways over the Christmas period for many years.

[Mr Philip Hollobone (Kettering) (Con)]

Does my right hon. Friend agree that those Labour Members who are hostile to a privatised railway and yearn for a return to public sector railways need to be reminded that Network Rail is a public sector operator? Given that it is in the public sector, will he urgently review its governance structure, because the absurd sub-board of 30 to 50 supposedly independent members seems to be inadequately scrutinising the board of directors and the chief executive?

[Mr McLoughlin]

My hon. Friend makes interesting points that are worthy of a longer debate rather than just a very short answer. The truth is that Network Rail was reclassified last September when it came on to the public books. What I felt then was the most important thing, and still do, is that the work being done as a result of the huge investment that is going in to make the railway both safer and a better system should go on with minimal disruption. The executive board he mentions is not of the size he suggests, and it is a way of trying to involve the general public as well. But the points he makes concern issues I will certainly look at.

[Ian Lucas (Wrexham) (Lab)]

We have heard much rhetoric from the Secretary of State about additional investment in the railways. In December, did not his Department, under his direction, cancel the investment in phases 1 and 2 of modular signalling improvements in north Wales? Will he confirm that he has authorised that?

[Mr McLoughlin]

What I will confirm is that we are investing some £38 billion in the railways, which is more than any previous Government have invested. In 13 years, Labour electrified 10 miles of track. We will be electrifying more than 800 miles, which is a record of which this Government are incredibly proud. [Official Report, 7 January 2015, Vol. 590, c. 1-2MC.]

[Alec Shelbrooke (Elmet and Rothwell) (Con)]

Under nationalisation, the railways suffered from decades of neglect and under-investment. I pay tribute to Network Rail for the work it is doing to sort out that problem, particularly as my constituents of Elmet and Rothwell regularly use the east coast main line. Does my right hon. Friend find it incredible that many Opposition Members feel that the answer is to nationalise the railways and go back to the bad old days?

[Mr McLoughlin]

I am grateful to my hon. Friend for that question. As I have said, we have seen a tremendous increase in the importance of the railways. I do not want to bore the House, but I will repeat the figures that I have already mentioned. Under British Rail, 750 million journeys were made every year. Last year, the figure was 1.6 billion. Growth year on year is the result of the way in which the franchises are selling tickets and promoting the railways.

[Barry Gardiner (Brent North) (Lab)]

The Secretary of State quite properly said that the network failure was unacceptable, and he quite properly said that Network Rail would be held to account. But he did not say how it would be held to account. Will he please advise the House what he is doing to hold it to account, and what penalties it will pay?

[Mr McLoughlin]

I have mentioned two reports that are under way. One will be given to the chief executive of Network Rail by the end of the week. It will be made public in time for his appearance before the Select Committee. The Office of Rail Regulation is rightly investigating what happened at King’s Cross and Paddington. When I have those reports, I will consider what further action to take.

[Sir Tony Baldry (Banbury) (Con)]

Is it not worth noting that some railway companies such as Chiltern Railways were able to run a service on Boxing day? Indeed, as a consequence of privatisation and investment by Chiltern Railways, running times between Banbury and London have been halved and we are now seeing more passengers being carried faster on certain railway lines than at any time in the history of the railways.

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[Mr McLoughlin]

Indeed, and my right hon. Friend is absolutely right about the improvement in services in his area. We are hearing further calls for even greater improvements, particularly in capacity, as more people are using the railways. But I agree with him about what Chiltern Railways has done for his constituency and for the constituencies along that line.

[Andrew Gwynne (Denton and Reddish) (Lab)]

What lessons has the Secretary of State learned from this sorry episode over the Christmas period? Does he recognise that the frustration comes not just from cancellations and long delays but from the complexity of the compensation system, with different train companies applying different terms and conditions? There are also times when people end up on a rail replacement bus having paid top fares for a rail journey.

[Mr McLoughlin]

The hon. Gentleman asks a number of questions. I will try to answer them all. The new franchises I am issuing have changed the way in which compensation is awarded, and they are a great improvement on those awarded by the previous Government. He also asked me about bus replacement services. If he wants us to carry out improvements on the network, alternatives have to be made available. I accept that our changes and improvements are an issue, but we are investing a record £38.5 billion in the railways between 2014 and 2019. [Official Report, 7 January 2015, Vol. 590, c. 2MC.]

[Mr Bernard Jenkin (Harwich and North Essex) (Con)]

Would my right hon. Friend care to speculate on whether the report will be able to shed light on who was warning that the risks of this engineering programme were uncontainable and likely to spill over into the commuting timetable? Is it not important that Network Rail improves its risk management and learns how to talk about risk more openly and publicly, rather than the report’s simply allocating blame and punishment, which would not be a constructive way forward?

[Mr McLoughlin]

My hon. Friend is right that we need to learn the lessons from any such incident. I am not aware of receiving any letters from the shadow Secretary of State before the incident saying that we were trying to do too much. In fact, I am not sure that I had any representations from any Members saying that we were trying to do too much and were too adventurous. My hon. Friend is right that we must learn the lessons and ensure that we do not have similar incidents in the future.

[Mark Reckless (Rochester and Strood) (UKIP)]

Why does the Secretary of State pretend he is in charge when the reality is that the Network Rail board reports to its members—the 46 public members identified by the hon. Member for Kettering (Mr Hollobone)—and a similar number of industry vested interests? Does the Secretary of State not understand that the board was set up in such a way by the previous Government only to try to get borrowing off the books? Now that that has failed, why does he not deal with this preposterous management structure?

[Mr McLoughlin]

As I said earlier, the simple fact is that Network Rail is challenged at the moment with the biggest investment in the railways since the Victorian era. Indeed, in the hon. Gentleman’s own constituency a brand-new station is being built by Network Rail. Perhaps he wants it cancelled; I will take that as a representation.

[Alistair Burt (North East Bedfordshire) (Con)]

My constituents coming from Biggleswade, Sandy and Arlesey into King’s Cross were of course inconvenienced and annoyed by what happened, but they are sensible enough to appreciate that the improvements being done were for their benefit and for the benefit of the line, as they have seen over the past few years. May they also add their sensible voices to those expressing concern about any possible sanction impacting on investment in further improvements rather than on those who made the decisions in the first place?

[Mr McLoughlin]

I agree with my right hon. Friend. It is vital that we do nothing to put back the very ambitious programme for improvements to our railways that will, in the long term, benefit all our constituents.

[Kevin Brennan (Cardiff West) (Lab)]

The Secretary of State seems to want to blame the shadow Secretary of State and other Members of the House for not warning him that this was about to happen. When he said sorry in his original reply, was he taking responsibility personally as Secretary of State for Transport for the chaos that occurred or was he simply apologising on somebody else’s behalf?

[Mr McLoughlin]

I was saying as Secretary of State for Transport that I was very sorry for any inconvenience to passengers. Along with the chief executive of Network Rail, I have put in place measures to ensure that we learn from what went wrong in these incidents, which were clearly unacceptable. The point I would make to the hon. Gentleman is that when I made these points in the last Transport questions and in giving evidence to the Select Committee just before Christmas, nobody said that we were being over-ambitious.

[Oliver Colvile (Plymouth, Sutton and Devonport) (Con)]

I thank my right hon. Friend for the clear announcement he has made today and add my thanks for the work done by Network Rail in Dawlish. Will he confirm that improvements to signalling down to my Plymouth, Sutton and Devonport constituency will deliver a more sustainable railway line that will get trains there much more quickly—in three hours—and that trains will arrive in Plymouth before 9 o’clock in the morning?

[Mr McLoughlin]

I congratulate my hon. Friend on the valiant campaign he has led to ensure that he gets faster train services to his constituency, pointing out how important they are for his city. I hope to be able to improve on his campaign so that he gets the services that are wanted for the constituency.

[Diana Johnson (Kingston upon Hull North) (Lab)]

After the Christmas shambles, I was pleased to see that the chief executive of Network Rail voluntarily said that he would not take his bonus of £34,000. Has the Secretary of State considered introducing performance-related pay for rail bosses, in the same way as his Government advocate it for teachers?

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[Mr McLoughlin]

I do not think I will take too many lessons from the Labour party about bonuses. In 2009-10, the bonuses paid to Network Rail were £2.3 billion; this year, it was going to be £260,000. I think there should be carrots and sticks, and, if the criteria set are met, a bonus is a way of rewarding the people directly involved in providing services. [Official Report, 7 January 2015, Vol. 590, c. 2-4MC.]

[Bob Blackman (Harrow East) (Con)]

The football fixtures were published in July last year, with a full programme of matches scheduled for Boxing day. There were no national rail services that day—clearly that decision was taken at some stage during the year. What is inexcusable is the complete lack of communication to football fans across the country about what alternative arrangements should have been made. What can my right hon. Friend offer the inconvenienced football fans who were desperately seeking an alternative way to travel on Boxing day?

[Mr McLoughlin]

One of the things I am not responsible for—I do not think any member of the Government is—is the fixture list of football clubs. Perhaps they need to answer the question why some of the fixtures are so far apart in the country at a time when, as has been the case for many a year, there is no rail operation because of engineering work on the lines. My hon. Friend makes an interesting point about what should change in the considerations. I do not think football fixtures will be at the top of the priorities, but obviously we should take an interest.

[Nic Dakin (Scunthorpe) (Lab)]

My constituents have been contacting me, concerned about the squeeze on their living standards from a 20% increase in rail fares since 2010. How can the Secretary of State make sure that there is no repeat of the chaos and that rail passengers get the service that they are more than paying for?

[Mr McLoughlin]

I do not know if that is a spending commitment that will be matched by those on the Opposition Front Bench. It is no good complaining about the level of investment taking place and then saying that somehow there is a bigger pot of money available to subsidise or support the rail industry. That is just not practicable.

[Jeremy Lefroy (Stafford) (Con)]

I pay tribute to the Network Rail workers and contractors who performed such excellent work on the major renovation at Norton Bridge in Staffordshire, with the new flyover of the west coast main line, but will my right hon. Friend consider what more can be done to help travellers to complete disrupted rail journeys? Often, they find themselves in difficult places at 10 o’clock at night and cannot make the last leg of their journey. I believe that Network Rail has a responsibility in such circumstances. I had to go to Derby to pick up relatives and bring them back to Staffordshire, and as much as I love Derbyshire, I prefer to be in Staffordshire for Christmas.

[Mr McLoughlin]

I am pleased to hear that my hon. Friend loves Derbyshire. That may be a feeling the hon. Member for Bolsover (Mr Skinner) and I share with him. I would point out that, as he rightly says, the major bottleneck at Stafford and Norton Bridge has now been unblocked, enabling faster, more frequent and reliable services for passengers. Engineers carried out essential bridge and track work at Norton Bridge and renewed the signals and overhead wires at Stafford, forming a key part of an overall project costing some £250 million. Although my hon. Friend did suffer some inconvenience, I hope the benefits of the overall project will be longer lasting.

[Jim Fitzpatrick (Poplar and Limehouse) (Lab)]

The Secretary of State is a man of integrity. He has apologised and he has accepted that both the contingency arrangements and communications were not adequate. Has he had a chance to assess whether the vast amount of work that Network Rail undertook to do at King’s Cross was in fact too much within the time available?

[Mr McLoughlin]

That is one of the questions I want the report to address. The hon. Gentleman is a member of the Transport Committee and I will be interested to see its report, knowing that Mark Carne and Robin Gisby will be giving evidence to the Committee next week.

[Charlie Elphicke (Dover) (Con)]

Does the Secretary of State agree that this issue is not simply about late-running engineering works and engineering blockades but important infrastructure such as Dover Priory railway station car park, which is even more late-running than the engineering works we have seen? Does that not underline the need to look at the wider structure of Network Rail, the incentives for efficiency and excellence, and the delivery of projects on time?

[Mr McLoughlin]

As I said, the whole upgrading of the rail network cannot be done without disruption in certain areas, meaning that at certain stages closures have to take place. It would not otherwise be possible safely to do the work that has been required. My hon. Friend’s wider point is a valid one that we will want to address following the experiences we had.

[Kerry McCarthy (Bristol East) (Lab)]

First Great Western has assured me that it tried its utmost to keep passengers informed about what was going on at Paddington on 27 December, but one of the problems was that Network Rail seemed unable to give it any clear estimates of when the work would be completed, and there were lots of false assurances. How can the Secretary of State ensure that this will not happen again? It has been pointed out to me that it happened last year, in similar circumstances, and the year before as well. Can we be sure that it will not happen next year too?

[Mr McLoughlin]

I agree that a lot more can and should be done about communicating what is going on in the rail system, whether by Network Rail or individual train operating companies. When I meet the Rail Delivery Group and the management of Network Rail, I will stress that the whole industry has to address that in future.