HS2 Phase One Consultations

Lord McLoughlin Excerpts

Thursday 16th May 2013 Written Statements

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

The Government have today published two documents for consultation which significantly move forward our work on the HS2 route between London and the west midlands (known as phase 1 of HS2). These are the draft environmental statement and the design refinements consultations.

Publication of the draft environmental statement (ES) is a key step towards delivering the hybrid Bill for the HS2 route between London and the west midlands. The formal ES will be published alongside the hybrid Bill later this year, having been further refined in light of responses to the draft ES consultation.

The draft ES provides, wherever available, information on the likely significant environmental effects of HS2—and our plans wherever possible to mitigate them.

The Government believe that HS2 is vital for this country and will provide a huge economic return. However, I am aware that the building of the railway will cause disruption for those living close to the line of route. I am determined that this disruption should be kept to a minimum and mitigated wherever possible.

Consulting on the draft ES is not a statutory requirement but the Government recognise the importance of ensuring widespread engagement on the scheme. Best design can only be reached with the input of local communities, environmental groups and all levels of Government.

Once the hybrid Bill is deposited, there will be a further period of consultation on the formal environmental statement as part of the parliamentary process.

Alongside the draft ES, I have published a consultation on a series of design refinements for the HS2 route between London and the west midlands. Since we set out our proposed route in January 2012 we have been developing the detailed design of the scheme, listening to the representations from individuals and organisations affected by the route. This refinement process aims to ensure that we design a railway that is as efficient and effective as possible while limiting as far as practicable its impacts on people and the environment.

Many of these proposed refinements are small in scale but some are more significant, altering the local impact of the scheme. To ensure my final decisions on these refinements are informed by the best possible information I have decided to consult on my initial preferences for the more significant changes before deciding whether to include them in the final design of the scheme.

Consultation on both the draft environmental statement and the design refinements closes on 11 July. Consulting on these two documents is part of the process of helping to make HS2 the best it can be, providing passengers with the high level of service they expect while minimising as far as practicable the impact on local communities.

Oral Answers to Questions

Lord McLoughlin Excerpts

Thursday 25th April 2013 Commons Chamber

[Chris Evans (Islwyn) (Lab/Co-op)]

1. What progress his Department is making on its rail fares and ticketing review; and if he will make a statement.

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

We are considering a range of options to improve rail fares and ticketing, and we intend to set out our findings and next steps this summer.

[Chris Evans]

Commuters in Islwyn will pay three times as much as their counterparts in Scotland, whose Government are freezing off-peak rail fares next year. Do this Government plan to do the same here?

[Mr McLoughlin]

We are looking at a wide range of options for ticketing and, as I said, we hope to report to the House on that in the summer. What we have in place for ticket pricing is exactly the same as under the previous Government.

[Andrew Bridgen (North West Leicestershire) (Con)]

The McNulty report identified significant costs incurred on our railways compared with those of our European counterparts. Will my right hon. Friend outline what those extra costs are?

[Mr McLoughlin]

I am keen that the industry learns a lot of lessons from the McNulty report. That important report was set up by the previous Government, although it reported to us, and it has set out ways in which we need to improve the operations of the railways. However, I would point out that there are a number of tickets in this country that are cheaper than those in Europe.

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

Given that the National Audit Office has warned that higher rail fares could lead to greater profits for the train companies, why has the Secretary of State caved in to those companies by giving them permission to increase their fares by up to 5% above his so-called cap?

[Mr McLoughlin]

We have had this argument before. As I have pointed out to the hon. Gentleman and other Labour Members, we are following exactly the same policy as the previous Government—[Interruption.] The hon. Member for Garston and Halewood (Maria Eagle) is shouting from a sedentary position, but they changed it for one specific year. I would point out that the previous Labour Government planned that 70% of costs would be met by fare payers by 2013-14.

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

If I try to book a train ticket from Glasgow to Sheffield, the cheapest standard single is £108. However, booking three tickets—Glasgow to Preston, Preston to Manchester, and Manchester to Sheffield—is half that cost. There is a whole host of similar examples throughout the network, so will the fares and ticketing review put a stop to such nonsense?

[Mr McLoughlin]

I want the ticketing review to address several issues. The Minister of State, Department for Transport, my right hon. Friend the Member for Chelmsford (Mr Burns), and I will look at that situation, but I also want passengers to have more clarity about how they can take advantage of some of the cheaper fares that exist.

[Mr Philip Hollobone (Kettering) (Con)]

Will the Secretary of State look at the cost of rail travel per mile? He will know that, compared with other lines, his and my line—the midland main line, which goes through Kettering—is very expensive for rail travel per mile.

[Mr McLoughlin]

My hon. Friend is right to say that I know that line particularly well, and I often ask questions about it to find out what is happening over the whole rail network. However, I should point out to him that cheap deals on that particular line can be found.

[Barbara Keeley (Worsley and Eccles South) (Lab)]

2. What steps he is taking to increase the affordability of bus travel for young people accessing education or training.

--- Later in debate ---

[Pauline Latham (Mid Derbyshire) (Con)]

7. What steps he is taking to reduce sign clutter on roads.

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

The Government are committed to reducing sign clutter. I recently wrote to English local authorities to encourage them to take action, and I have sponsored an award to encourage the reduction of sign clutter. The Department will be revising traffic sign regulations and general directions to provide local authorities with far more discretion about where and when they place traffic signs.

[Pauline Latham]

I thank my right hon. Friend for that answer. On a recent visit to Vietnam, I noted that the communist Government there put up propaganda signs all over the place. Similarly, Derby city council puts up signs showing anti-Government propaganda. Does my right hon. Friend agree that that is a terrible waste of taxpayers’ money?

[Mr McLoughlin]

I, too, regularly see those signs, and one must wonder why we are seeing such signs around Derby city at a time when the council is saying that it does not have enough money for other essential services, and when it has just increased council tax. That is unlike Derbyshire county council, which also serves my hon. Friend’s constituency but has had a 0% rise in council tax. That is an important message for the people of Derbyshire about where money is being spent.

[Duncan Hames (Chippenham) (LD)]

8. What plans he has for incentives to encourage the take-up of electric vehicles.

--- Later in debate ---

[Sarah Champion (Rotherham) (Lab)]

10. What recent discussions he has had on increasing the motorway speed limit to 80 miles per hour; and if he will make a statement.

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

Work is continuing to assess the potential economic, safety and environmental impacts of trialling 80 mph speed limits across a number of sites on the motorway network. It is important that decisions are made on the basis of sound evidence, and as part of that I have had discussions with a number of bodies.

[Sarah Champion]

The Highways Agency proposes to expand its managed motorways programme so that the hard shoulder between junctions 32 and 35A of the M1 will be used as a permanent traffic lane, with the scheme running 24 hours rather than at peak congestion times, as other schemes do. Does the Minister share my concern, and that of local authorities, South Yorkshire safer roads campaign, and South Yorkshire police, that that proposal, especially at 80 miles per hour, will create a real safety issue?

[Mr McLoughlin]

I am obviously willing to hear any representations about the managed motorway scheme that we are progressing. We have found that where we have managed motorways, we have a better flow of traffic and safer statistics overall for the use of that particular road. These are important matters and I am more than happy to discuss the issue with the hon. Lady. I assure her that we are trying to increase capacity for her constituents and other people who use that very important motorway.

[Mr David Nuttall (Bury North) (Con)]

But does the Secretary of State agree that retaining a 70 mph limit on our motorways and not strictly enforcing it risks bringing the law into disrepute, and that it would be far better to have an 80 mph limit that is enforced?

[Mr McLoughlin]

My hon. Friend makes one of the many arguments for an increase. The 70 mph limit was set in 1965, and it is fair to say that, since then, there has been a great improvement overall in road safety, but I want to look at all those issues.

[Mr John Leech (Manchester, Withington) (LD)]

The human cost in lives, the economic cost of infrastructure changes and the environmental impact of carbon emissions are surely all good enough reasons to rule out once and for all any increase in the speed limit.

[Mr McLoughlin]

As I said in the replies I have just given, I am not ruling that out—I am looking at it. The hon. Gentleman makes important arguments that go the other way. It is not a straightforward issue.

[James Morris (Halesowen and Rowley Regis) (Con)]

11. What funding his Department is providing for new train stations; and if he will make a statement.

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

In March, I made an announcement of three stations that are likely to secure funding from the £20 million new station fund—Ilkeston, Lea Bridge, and Pye Corner. I expect to make another announcement in May. The Government also provide funding to local authorities through the major local transport scheme budgets and the local sustainable transport fund. Those funds can also be used to provide new railway stations.

[James Morris]

Rowley Regis station in my constituency provides a vital link for commuters into Birmingham and the surrounding area, but the car parking facilities at the station have reached capacity. Will the Secretary of State meet me and Centro representatives to push forward on the vital project to expand car parking facilities so that commuters do not have to park on residential streets?

[Mr McLoughlin]

Recent research by the Association of Train Operating Companies shows that the number of rail journeys in and around Birmingham has increased by more than 20% in the past five years. It is one of 14 cities to record double-digit growth. In a way, I am not surprised to hear of the problems that that is causing for my hon. Friend’s constituents, and I am more than happy to meet him and Centro to discuss the matter.

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

High-quality transport gateways to our towns and cities are vital in supporting regeneration and growth. Plymouth is a case in point—Network Rail’s buildings there are appalling. Given that Network Rail says that it is more reactive than proactive, what discussions is the Secretary of State having with his colleagues in the Department for Business, Innovation and Skills and the Department for Communities and Local Government to encourage development, and to encourage Network Rail to take commercial advantage of some of its sites?

[Mr McLoughlin]

That is obviously an ongoing, regular discussion I have with Network Rail. I will visit Plymouth in the next few weeks. That is one of the things I will look at and, subsequently, discuss with Network Rail.

[Harriett Baldwin (West Worcestershire) (Con)]

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

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

Since I last addressed the House at Transport questions, I have appointed members of the franchising advisory panel. I announced in my last statement that Richard Brown will be the chairman. The other members will be Nicola Shaw, chief executive officer of High Speed 1 Ltd; Stephen Paine, managing director of UK investment banking at UBS; Martin Buck, the commercial director of Crossrail; and Michael Holden, chief executive officer of Directly Operated Railways and chairman of East Coast—[Interruption.] For the benefit of the shadow Leader of the House, Nicola Shaw is on the panel. That panel of experts will meet on a monthly basis and help provide reassurance that the franchising programme is on track, and that the correct governance will be followed.

[Harriett Baldwin (West Worcestershire) (Con)]

I thank the Secretary of State for the money he has put in for the pinchpoint between the A46 and the M5. In other A46 news, a local village has discovered that fibre optic cable runs along it, and has connected some of the local homes to it. Will the Secretary of State consider asking the Highways Agency to publish information on all roads on the network that have fibre optic cable along them?

[Mr McLoughlin]

My hon. Friend makes a very good point. It is important that we make proper use of all the infrastructure available, particularly in respect of bodies such as the Highways Agency. My understanding is that the agency makes details of the current fibre optic communication network available to any interested party, but following my hon. Friend’s points, I will speak to the agency and see whether we can do more.

[Hugh Bayley (York Central) (Lab)]

T2. What help are the Government giving to smaller local authorities away from metropolitan areas, to introduce smart ticketing to make bus journeys more convenient and cheaper, and to get more people on to buses?

[George Hollingbery (Meon Valley) (Con)]

T3. Will the Secretary of State update the House on any discussions he may have had with the Mayor of London with regard to suburban railway services in the south-east?

[Mr McLoughlin]

I met the Mayor of London yesterday and had a wide-ranging discussion on many subjects relating to London and other areas. What I have always said is that in principle I have nothing against wider franchising, but I need to see that there is proper accountability. Discussions are ongoing.

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

As we approach the spending review, will the Secretary of State give careful consideration to the need to secure funding for the extension of the Metrolink in Greater Manchester through Trafford Park in my constituency?

[Mr McLoughlin]

I will take that as one of many bids we will receive. I am very keen to invest in infrastructure for the long term, and various local authorities are putting forward a number of schemes. They will all be assessed and judged, and decisions will be made in the light of the resources available.

[Ben Gummer (Ipswich) (Con)]

T4. The Minister and the Secretary of State will know that the world’s largest financial centre is connected by the great eastern main line to some of the leading centres of research and development in the country, yet commuters and travellers can expect to use rolling stock that was unsuitable for travellers on the west coast main line 10 years ago. The Government have invested heavily in infrastructure. When will they be able to invest in rolling stock, too?

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

May I press the Secretary of State to provide me some evidence? I started off as a supporter of HS2. I attended a seminar in this House this week that predicted that it would cost £50 billion. What is the evidence that this will be a good investment for the towns and cities of the midlands and the north?

[Mr McLoughlin]

I am sorry that the hon. Gentleman seems to be questioning this. People do inflate figures. I believe that the figures, with which I have been very open with the House, remain as the figures. I believe the changes that HS2 will bring—the first new railway line built north of London in 120 years—will provide an important impetus for economic growth for the United Kingdom.

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

T5. The A64 is an extremely dangerous and highly congested road serving businesses along the route right through Thirsk and Malton between York, Filey and Scarborough. Will it qualify for a pinchpoint scheme, and what other criteria will it need to meet?

[Ian Mearns (Gateshead) (Lab)]

The east coast main line has returned £640 million to the public purse since 2009. Sadly, private ownership has failed the travelling public of the east coast franchise. What possible public benefit can be gained by another wasteful and expensive round of refranchising, when east coast is already where the vast majority of the public want it, in public ownership?

[Mr McLoughlin]

I point the hon. Gentleman to what was said by the last Labour Transport Secretary, the right hon. Member for Tooting (Sadiq Khan) who now sits on the Opposition Front Bench. It is worth pointing out that National Express paid £185 million in 2007-08, £145 million in 2008-09 and £8 million in 2009-10, which is when the franchise ended. The way that the track excess charges were calculated was then changed, so direct comparisons are not valid.

--- Later in debate ---

[Sheila Gilmore (Edinburgh East) (Lab)]

In answer to an earlier question from my hon. Friend the Member for Rotherham (Sarah Champion), the Secretary of State said that he made decisions based on evidence. Why is that not being applied in relation to the east coast franchising, given that we have had two failures of the private sector and now experience of a good service?

[Mr McLoughlin]

The evidence was supported by the fact that we have seen huge growth in the railways since privatisation 20 years ago. Since then, there have been 13 years of Labour Government, and they did not reverse it—in fact, they enhanced and pushed forward the franchising. The last Labour Secretary of State said that franchising was a good thing. I believe he was right and that passengers benefit from it.

[Pauline Latham (Mid Derbyshire) (Con)]

T8. Will my right hon. Friend update the House on the dreadful congestion on the A38, particularly around the Markeaton and Little Eaton roundabouts in my constituency? It is causing misery to my constituents and Derbyshire residents.

[Mr McLoughlin]

I think that my hon. Friend lives close to the Little Eaton island and I live close to the Markeaton island, so we both know of the regular delays on that very important road. On the pinchpoint funds, I am pleased that we will see some improvements this month—as she will know, work has already started on preparing the site for those improvements. I have met the leader of Derby city council, and I know that my hon. Friend has met the Roads Minister, my hon. Friend the Member for Wimbledon (Stephen Hammond). We are looking at this issue, but it is a very big scheme.

[Ian Lavery (Wansbeck) (Lab)]

Two weeks ago, Lord Adonis published a report on the north-east local enterprise partnerships suggesting that political consideration should be given to the extension of the Tyne and Wear metro into south-east Northumberland. Will the Secretary of State agree to meet me and interested parties to discuss that possibility and other possibilities for railway links from south-east Northumberland into the cities of the north-east?

[Mr McLoughlin]

I am pleased that the hon. Gentleman is calling Lord Adonis in support; other people were attacking what he did when he was Secretary of State. I am aware of the report and was in the north-east a few months ago. I am happy to meet the hon. Gentleman to discuss some of the important points within that report.

The Leader of the House was asked—

High Speed Rail

Lord McLoughlin Excerpts

Thursday 25th April 2013 Written Statements

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

I am today publishing supplementary information regarding the consultation on an exceptional hardship scheme for phase two of high speed two. I am also extending the exceptional hardship scheme consultation period until 20 May 2013.

On 28 January I announced the Government’s initial preferred route, station and depot options for phase two of HS2. Alongside this I set out for consultation an exceptional hardship scheme (EHS). The EHS is intended to enable owner-occupiers whose property has reduced in value as a result of the route announcement—and who can demonstrate a need to sell their property—to sell it to the Government at its full un-blighted market value.

We always welcome feedback on our proposals for HS2 and in response to some such feedback we have decided to publish further information to supplement the consultation document that we published in January.

The additional information we are publishing consists of:

A summary of the more significant feedback that we have received on the operation of the EHS that is already in place for phase one of HS2, and our responses to those points;

Data about the operation of the EHS for phase one; and

A study of property blight around the phase one route in the six months immediately following the announcement of the proposed route.

We are also taking the opportunity to clarify some of the terminology used in the consultation document; and about how the scheme’s criteria are applied.

We have published this information on HS2 Ltd’s website and will be making printed copies of this information widely available in libraries, Citizens Advice Bureaux and at local authority customer service departments along the line of route for phase two. We will also advertise it in newspapers. HS2 Ltd will be writing to those who have already responded to this consultation to make them aware of this additional information and the extension of the deadline for responding to the consultation. I have placed a copy in the House Libraries.

The Government are committed to delivering a compensation scheme that is fair and appropriate both to those directly affected by HS2 and to taxpayers. We have been clear all along that we want to get compensation to the people who need it as quickly as possible and this remains our intention.

Subject to the outcome of this consultation, it is still our intention to have an exceptional hardship scheme in place for phase two in the summer of this year.

Rail Franchising

Lord McLoughlin Excerpts

Tuesday 26th March 2013 Commons Chamber

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

With permission, Mr Speaker, I wish to make a statement about the future of our railways. It is a positive future. It is almost 50 years ago to the day since Dr Beeching published his report. No one would have imagined then, or even 20 years ago, when the Government privatised the railways, which were still in decline, that the industry would now be booming. Traffic has doubled since privatisation, from 750 million journeys a year to 1.5 billion now. There are more services and record levels of investment, and our railways have the best recent safety record in Europe. That has not been achieved despite privatisation; it has been achieved because of privatisation.

Today I am setting out a programme that can achieve even more, because our country has to compete for jobs and growth. We need a transport system that is second to none, so we are spending unprecedented sums on infrastructure, such as Crossrail, the biggest construction project in Europe, and the northern hub cross-Manchester link, which will transform services across the Pennines. In return, it is right that we demand more from the industry, because for the money that passengers and taxpayers are putting in, we should expect ambition, innovation and even better performance for passengers. This is the way we are going to get it.

Last year, serious and unacceptable mistakes were made when it came to refranchising the west coast main line, but I have put in place a new structure and process in the Department, as the Laidlaw report recommended. In January, I announced our initial proposals for the three franchises most immediately affected: Great Western, Essex Thameside and Thameslink. Today I can confirm that I am accepting the next stage of the findings of the Brown review of rail franchising. I am also pleased that Richard Brown has agreed to chair a new franchise advisory board. I am publishing its terms of reference today. The Brown review called for a full refranchising programme to be announced by the end of April. I am pleased to be announcing it today.

I want to be as open as possible with the market, which is why I am publishing a prior information notice to set out not just the programme for franchising, but the way in which franchises will be let and the benefits they will bring. In doing so, I have applied three principles: first, that the passenger gains; secondly, that the rail industry thrives, with growing companies and new competitors coming into the market; and thirdly, that the taxpayer gains, through a more efficient use of public money and less waste in the industry. Those three principles are essential points on which the future of our railways rests.

Let me turn in detail to what I am announcing today —a programme that will give great improvements to the passenger, certainty to industry and a fair deal to the taxpayer. It will provide stability, so that we can invest more, and flexibility, so that different routes with different demands can be managed in different ways. The programme will also give fair weight to passenger satisfaction, which has not always been respected as it should have been, with long-term franchises that can run for up to 15 years if operators meet the standards they promise at the start. To ensure a competitive market, we will hold no more than three to four competitions a year, starting with a smaller number as the programme gets up to full speed and extending up to 12 current franchises to give certainty to passengers and allow the full programme to get under way.

There are those who would like our railways to go back to the days of state ownership, decline and under-investment. They are wrong. I share the view of the last Labour Government, who said that franchising worked. In 2009, Ministers brought in Directly Operated Railways on the east coast as a short-term stand-in. They did what was needed in difficult circumstances, but the east coast main line, upgraded in the 1980s, now needs revitalising. New trains, to be built in the north-east, are now on order. Now is the right time to invite bidders to put forward proposals for investing and improving those services. This will be the first of the new inter-city franchises to be awarded in 2014 in a programme that meets my three essential principles of better service, better competition and better value.

I wish to make one final point. The Beeching report was about closures and cutbacks, but its 50th anniversary tomorrow sees an industry marked by growth, not decline—investing in High Speed 2 for the future, as well as providing better services today. That is why I am pleased to announce the front runners in our fund to open new stations. They are Lea Bridge in Walthamstow, Pye Corner in Newport West and Ilkeston in Erewash. I expect to announce further winners soon. I commend this statement to the House.

[Maria Eagle (Garston and Halewood) (Lab)]

I thank the Secretary of State for advance sight of his statement. He inherited a Department in crisis and a rail franchising system in chaos. I acknowledge that he has had to work hard to try to put things back on track. He has rightly reversed many of the decisions of his two predecessors, not least by restoring some of the key posts in the Department that had recklessly been axed by them. We welcome the speed with which the right hon. Gentleman has worked with Richard Brown and his departmental officials to put together the plans he has set out today. However, it is also true that his revised franchising timetable has exposed the full impact of the failure of his predecessors, all of whom either remain in the Cabinet or have been promoted to it.

The Great Western contract will be awarded in July 2016—three years and three months later than planned. The west coast contract will not be awarded until April 2017—four years and four months late. Some competitions are to be delayed by as much as 50 months—not five months, but 50—yet instead of focusing on the chaos in franchising caused by his Government’s incompetence, the Secretary of State has decided to embark on an unnecessary and costly privatisation of the east coast inter-city services—a privatisation due to take place weeks before the date of the next general election.

The right hon. Gentleman hinted that investment was dependent on that happening, but will he acknowledge that the planned investment in the east coast main line, to be delivered by Network Rail, and the new generation of inter-city trains will happen regardless of this privatisation? Is it not the case that Directly Operated Railways has reinvested all of its £40 million profit in the east coast service on top of the £640 million paid to Government, with every pound of profit going back in for the benefit of passengers? That profit will, under the Secretary of State’s new plans, be shared with shareholders in future. Instead of talking down the current operator of the east coast, will he join me in praising the team there for the work they have done, and think again about his plans?

Will the Secretary of State update the House on the latest cost of the franchising fiasco, not least since his Department appears to be facing legal action from several more train operating companies? Will he correct the claim in his Department’s press notice today that this is the first time that a full franchise timetable has been published? I have with me the previous full timetable that was inherited from the previous Government and republished by his Government. Does he accept that what has changed is simply the fact that all the competitions have now been delayed?

The Secretary of State has also changed the proposed order of the competitions, leading in some cases to very long extensions to existing contracts. What is his thinking behind that decision? Will he clarify the role of the new franchising advisory board that Richard Brown recommended in his review and is now to chair? The first version of the written ministerial statement this morning stated that it would be a cross-industry body and that it would support bidders, but the corrected version appears to have dropped those claims. What, then, is it to do exactly?

What has happened to the Government’s previous enthusiasm for devolution? Will the right hon. Gentleman update the House on discussions with transport authorities covering the Northern and TransPennine franchises and services in the midlands? Does he still anticipate devolving responsibility at the revised start date for these franchises? Have the Government given further consideration to the calls from the Mayor of London and Transport for London for devolution of the remaining former Network SouthEast services?

For the sake of passengers, taxpayers and those working across the rail industry, the whole House wants to see us get beyond the problems of the past year. I wish the Secretary of State well in doing that, but I urge him to focus his efforts on getting back on track the bits of the system that need fixing, rather than those that do not.

[Mr McLoughlin]

I thank the hon. Lady for her response to my statement. It was not quite as warm as that of the CBI, Passenger Focus or the British Chambers of Commerce, which were much fuller in their acknowledgement of our putting the future for the rail industry so clearly.

The hon. Lady has obviously forgotten what the last Labour Secretary of State, the noble Lord Adonis, said on 9 February 2010:

“The Government believe that the ability of private sector operators to attract more passengers, grow the market, improve the service and receive revenue benefits of such actions is a key element in the current franchise model and one of the reasons for the significant growth delivered in recent years.”—[Official Report, House of Lords, 9 February 2010; Vol. 717, c. WA122.]

It is certainly true that we are talking about a huge growth in rail traffic and rail transportation, with people relying on the railways. I could go on to quote—but I know you prefer shorter answers, Mr Speaker—the right hon. Member for Tooting (Sadiq Khan), who occupied my position before the last general election, as he praised the role of franchising.

I believe that the east coast line should be the first under the new system. I pay tribute to the work done by Directly Operated Railways, which has operated it, but when the hon. Lady talks about figures, she should look at the track access charges paid in control period 3 by National Express when it ran the east coast line. It paid £210 million in track access charges, whereas DOR now has to pay its track access charges of £92 million. [Interruption.] I can tell the shadow Leader of the House that that was paid in the year to which I referred.

That explains why we have set out a very clear set of proposals about where we are going, notifying the industry about the future, which I think is a bright one, and setting out the huge investment that we—and, indeed, Network Rail—are putting into the rail industry.

[Several hon. Members]

rose—

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

It is evident from today’s announcements that the Secretary of State’s Department will be under a great deal of pressure to deliver a vast programme of infrastructure projects. That pressure has obviously been intensified by the west coast main line franchise failure and of course the recent judicial review failure on the consultation process for HS2. Given those failures, what reassurances can the Secretary of State give us that his Department is still not overstretched and under-resourced?

[Mr McLoughlin]

I am grateful to my right hon. Friend for what I think was support at least for what I am doing on franchising. She talks about judicial reviews, but it is fair to say that of the 10 judicial reviews on HS2, the Department was found not to be wanting in nine cases. Only one judicial review went against us, and I am fully prepared to accept it. I wish the protesters, too, would accept the decisions made by the courts.

I can assure my right hon. Friend that my Department has the resources, and I am mindful of what Sam Laidlaw said in his report about what needed to be put into operation, and we have done that. I think that the Government’s setting up of the franchising advisory board was important—I am sorry that I failed to respond to the hon. Lady’s point about it earlier. It will report directly to the Government and to my advisory board on how the franchises are doing. I am sorry that a mistake was put out in one of the earlier press notices.

[Thomas Docherty (Dunfermline and West Fife) (Lab)]

I am disappointed that there has been no mention of the word “fares” in any of the statements so far. Will the Secretary of State clarify what he will do to bring down fares, and what he will do about staffed ticket offices?

--- Later in debate ---

[Mr McLoughlin]

I think the hon. Gentleman will know that we are undertaking a full review of fares. That will report later this year, probably in June; the date may move a bit, but I hope it will report in June. He will make his points on fares during that review. However, I would point out that, on a number of routes, cheap fares are available if people book in advance.

[Mr John Leech (Manchester, Withington) (LD)]

By deciding to refranchise the east coast main line, we risk not being able to assess whether the public sector or the private sector is best for the passenger, the taxpayer and the railways in general. Surely as a minimum, therefore, we should allow Directly Operated Railways to bid for the franchise.

[Mr McLoughlin]

That is not the case—Directly Operated Railways is not a company in its own right; it is a company owned by the Department for Transport. We will certainly be able to see how the companies are doing. The process will be open. I have already seen reports, although I have not had it confirmed, that Virgin will put in a bid for the east coast main line, and a lot of people were very happy with the service they received on the west coast main line.

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

On that very point, given that Directly Operated Railways is owned by the Department for Transport, surely the Secretary of State could instruct Directly Operated Railways to put in a public sector comparative bid so that we can judge who will provide best value for money and best value for the customers.

[Mr McLoughlin]

I would just point out to the hon. Gentleman, who has been in the House some time, that he was very happy to support a Government whose Secretary of State said:

“I do not believe that it would be in the public interest for us to have a nationalised train operating company indefinitely”. —[Official Report, House of Lords, 1 July 2009; Vol. 712, c. 232.]

I agree.

[Mr Stewart Jackson (Peterborough) (Con)]

The east coast main line is integral to the economy of Peterborough, and my constituents are concerned about value for money, punctuality and cleanliness. The Secretary of State rightly mentions the PAC report, which found that this Government inherited systemic lack of leadership and of oversight, miscalculation of risk capital and failure to heed legal advice. Is he absolutely convinced that, in respect of the east coast main line, we have learnt those lessons and that mistakes will not be made again?

[Mr McLoughlin]

I can certainly assure my hon. Friend that we have learnt a number of lessons as a result of what happened with the west coast franchise. I well understand the importance to his constituents of the service that is provided on the east coast main line. It will be one of the first lines to get the new intercity express programme trains, which are due to come into service in 2018-19.

[Pat Glass (North West Durham) (Lab)]

As a north-east MP, I have been approached by a number of the companies that hope to bid for the east coast line, all of which are backed by foreign countries. Why does the Secretary of State think that it is not okay for the Government to run British railways, but it is okay for the French, German and Dutch to run them?

[Mr McLoughlin]

I think I pointed out clearly in the statement the vast growth we have seen in the railways. I do not think that that would have happened without privatisation. We have seen levels of investment that were not seen beforehand. I point out to the hon. lady the simple fact that I inherited the system of franchising that operated under the previous Government.

[Mr Rob Wilson (Reading East) (Con)]

I thank my right hon. Friend for his statement. Can he give a bit more detail on how he will increase competition and improve efficiency on the railways?

[Mr McLoughlin]

Reading station, in my hon. Friend’s constituency, has seen a major refurbishment. That will make a huge difference. There will be closures over Easter, but more platforms will open and the work at the station will conclude in two years. About £800 million has been invested. We would not be investing that kind of money if we were not getting a good return for the passenger, his constituents and those who are served further along that line by First Great Western.

[Hugh Bayley (York Central) (Lab)]

Passengers on the east coast main line have twice suffered the catastrophic collapse of a private franchise. What guarantee can the Secretary of State give that whichever company gets the new franchise will not collapse, and will the railway headquarters remain in York?

[Mr McLoughlin]

As for where the headquarters will be, that will depend on the case that is put forward by the various companies that I hope will compete for the franchise. The hon. Gentleman is right: two franchises collapsed under the previous Government, so that and this Government have both had some problems with franchising. I hope we have learnt our lessons. The rail industry has become a lot better at competing for these franchises.

[Martin Vickers (Cleethorpes) (Con)]

The Secretary of State rightly spoke of the innovation and ambition that he expects from the new franchise companies. Can he assure me that that innovation and ambition will extend to providing services off the east coast main line, most notably to Cleethorpes?

[Mr McLoughlin]

I am certainly willing to discuss in greater detail with my hon. Friend the services to his constituency, which I know have been very badly disrupted because of earth movements, which must be put right; the work is taking longer than we would have hoped.

[Graham Jones (Hyndburn) (Lab)]

The Secretary of State says that success on the railways has been achieved because of privatisation. The rolling stock in east Lancashire must be among the worst in the UK—it is absolutely dreadful. Privatisation has certainly not worked. The northern franchise is coming up, so what will he do to ensure that my constituents and others in east Lancashire benefit from that success?

--- Later in debate ---

[Mr McLoughlin]

A lot of rolling stock has been and is being ordered. I hope to see a roll-out to all areas, including the hon. Gentleman’s constituency.

[Iain Stewart (Milton Keynes South) (Con)]

I very much welcome the statement as a sensible way forward for franchising, but may I urge my right hon. Friend to use the temporary extension of the west coast franchise to urge Virgin and London Midland to work together temporarily to ease overcrowding on services from Euston, in the evening peak at least, until the full franchise is let and London Midland’s new train order comes through?

[Mr McLoughlin]

I am grateful to my hon. Friend, who follows this subject particularly closely, not just for his constituents but as a member of the Select Committee on Transport. I know that he sent me and my right hon. Friend the Minister of State, Department for Transport a fairly comprehensive letter, which I hope to respond to shortly, and I will see what can be done.

[Ian Mearns (Gateshead) (Lab)]

This morning, a statement by the Secretary of State’s own company, Directly Operated Railways, on the east coast main line said:

“Since 2009, the East Coast business has been transformed. The Company has returned more than £640 million in cash to the taxpayer”.

That is not because of privatisation, but because the public sector bailed out the private sector. There is huge support for continued public ownership. The private sector has already let down the travelling public on this route twice. Why risk it again when we are returning so much money to the taxpayer?

[Mr McLoughlin]

I was simply referring to what was said by the Secretary of State in the previous Government. It was a short-term measure. By putting out the franchise to the private sector, there will be better services. That is what I am interested in. I am not particularly interested in who owns it. I am interested in getting better services to the hon. Gentleman’s constituents, who want to take advantage of them.

[Nigel Mills (Amber Valley) (Con)]

Although I welcome the new station for Derbyshire, can the Secretary of State assure me that it will not be serviced at the expense of two other stations on that line, namely Alfreton and Langley Mill?

[Mr McLoughlin]

I think that that was a welcome for the new station and for the greater investment. Of course one always has to strike a balance when these cases are put forward, but I think that Ilkeston, Derbyshire county council and my hon. Friend the Member for Erewash (Jessica Lee) made a strong case for why Ilkeston should be successful. The case was judged by a panel that did not include me, and I am very pleased that Ilkeston has been successful.

[Julie Hilling (Bolton West) (Lab)]

So much for the Government’s grand promises to radically change franchising—only three franchises will be let before the next election. Some of the extension periods are enormous, following the extensions that operators have already had. What guarantees has the Secretary of State had that there will be investment by those companies during the extension periods?

--- Later in debate ---

[Mr McLoughlin]

I can assure the hon. Lady that there will be investment during those periods. In anything where I negotiate directly in awarding contracts, I look at the way services can be improved, and I hope to be able to make a statement shortly on some of those particular services.

[Tracey Crouch (Chatham and Aylesford) (Con)]

The Secretary of State will be aware that Southeastern is consistently one of the worst performing and most expensive train operating companies in the country. Can he therefore explain why it has been given the longest extension—50 months? Can he assure my constituents that the extension is not a reward for failure? What opportunity will passengers have to engage in the process of direct awards as it is finalised?

[Mr McLoughlin]

None of these direct awards will be made without getting the maximum we can out of the companies, talking to them and getting improvements in services. Where there have been let-downs, I will certainly want the companies concerned to address those problems.

[Kelvin Hopkins (Luton North) (Lab)]

May I suggest to the Secretary of State that there is indeed a public sector comparator for Britain’s railways: the nationalised railway systems on the continent of Europe? McNulty found that they are up to 40% cheaper to run than ours. We have the highest fares in Europe and a ballooning public subsidy. Is not keeping the railways in the private sector just driven by ideology and a desire to put public money into private pockets?

[Mr McLoughlin]

I am somewhat surprised—I am not sure whether the hon. Gentleman was expressing support for the McNulty recommendation that we should take costs out of the railways. I did not expect such support from the hon. Gentleman, but any help I can get, I am always happy to bag.

[Stephen Gilbert (St Austell and Newquay) (LD)]

The First Great Western franchise runs old trains with no wi-fi, and often no food, through run-down stations. Commuters in Cornwall and Devon would welcome average-speed rail, let alone high-speed rail. What can the Secretary of State do to push investment in this route before July 2016?

[Mr McLoughlin]

I know the hon. Gentleman was unable to attend my meeting with First Great Western because of other engagements. I am very keen to improve services, particularly in his part of the country. I am going there in a little while to look at those services first hand, and I will certainly pass on the representations he has made when I have discussions with First Great Western—and Network Rail, as both are involved.

[Mr Mike Weir (Angus) (SNP)]

Can the Secretary of State give a cast-iron guarantee that any east coast main line franchisee will at the very least be obliged to retain the existing level of service north of Edinburgh through my constituency to Aberdeen?

[Mr McLoughlin]

That is something I need to talk to the Scottish Government about.

[Jason McCartney (Colne Valley) (Con)]

I welcome the certainty today’s statement brings and the opening of the east coast main line franchise. Can my right hon. Friend confirm that passenger gain will be at the forefront of the franchising process?

[Mr McLoughlin]

I assure my hon. Friend that we are going to take passengers’ views very much into account in this system. That has not happened before, and today Passenger Focus has welcomed that development. It is part of the judgement that we must make when considering whether franchises are achieving their targets.

[Katy Clark (North Ayrshire and Arran) (Lab)]

Is the Secretary of State aware that tomorrow, to mark the 50th anniversary of Beeching, passenger groups and trade unions will demonstrate outside 80 railway stations against privatisation and job losses? Will he protect passenger safety and rule out job losses on the railways?

[Mr McLoughlin]

I am not sure the hon. Lady was listening to my statement. I pointed out that we have had a better safety record on our railways in the past few years than for a number of years, and we are one of the safest rail operators in Europe. Jobs have been created as a result of more people using the railways. Privatisation has doubled the number of people using the railways. I would have expected the hon. Lady to welcome that, and unions to be out welcoming it too.

[Priti Patel (Witham) (Con)]

In the light of the 27-month extension that has been given to the Greater Anglia franchise, what improvements to services will be appended to the existing franchise as a condition, so that local commuters see improvements to the service before the next franchise comes up?

[Mr McLoughlin]

I am grateful to my hon. Friend, who, along with colleagues from the Greater Anglia area, have given me a pamphlet setting out the changes being made. The Minister of State, Department for Transport, my right hon. Friend the Member for Chelmsford (Mr Burns), does not lose an opportunity to tell us how we must improve the services used by not only my hon. Friend’s constituents, but his.

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

The Secretary of State’s response to my hon. Friend the Member for York Central (Hugh Bayley) was disturbing. He said that he was not bothered who would run the franchise or where they came from, and could not confirm where such a company would be headquartered. Can he not use the tendering process to ensure that these details are nailed down and that the headquarters are in the United Kingdom?

[Mr McLoughlin]

I fear that the hon. Gentleman is taking me out of context. What I said was that my main concern is the service to the passenger, which I care very much about and want to see improve. The location of the headquarters will be up to the individual franchisees when they put their case forward, and they may make strong representations.

[Mr Philip Hollobone (Kettering) (Con)]

The Secretary of State and I, and our constituents, use the midland main line. Will he confirm when the franchise is up for renewal, and will he allow prospective bidders to come forward with proposals for new electric trains, instead of the Department insisting that they use recycled trains from other lines?

[Mr McLoughlin]

The date of the new contract for East Midlands will be mid-way through 2017, and a direct-operated tender deal will come to fruition in 2015. I hope my hon. Friend accepts that the fact that electrification of that line is included in next set of Network Rail works shows our commitment to it. I know how important—

[Maria Eagle]

In the next Parliament.

[Mr McLoughlin]

The hon. Lady says that, but the process starts in 2014, which is in this Parliament. I can assure her that 2014 will be in this Parliament, not the next Parliament, in which case we will be electrifying that line.

[Mr Speaker]

Before she attends to her next pressing commitment, let us hear from Catherine McKinnell.

[Catherine McKinnell (Newcastle upon Tyne North) (Lab)]

Thank you, Mr Speaker. I agree with the Secretary of State that if our country is to compete on jobs and growth, we need a transport infrastructure that is second to none. Can he therefore reassure me that today’s announcement is in no way driven by the view expressed by the chief executive of the North Eastern local enterprise partnership that there is no need to invest in north-east transport, and that he does not share that view?

[Mr McLoughlin]

There is every need to invest in transport across the United Kingdom, and LEPs have a very important role to play. I have not seen the exact quote, and I should like to see it in context.

[Heather Wheeler (South Derbyshire) (Con)]

I congratulate my right hon. Friend on today’s statement, particularly the great news about Ilkeston station, which will immediately transform and regenerate the area by providing connectivity. Is this the new dawn for the National Forest line—the old Ivanhoe line; can we look forward to that, too?

[Mr McLoughlin]

I am sure I will hear a lot more about the Ivanhoe line from my hon. Friend. I am pleased that she welcomes the opening of the station at Ilkeston, along with the other two stations I have announced today. There will be further work on that, but she is right: the fact that I, as Transport Secretary, have appeared at the Dispatch Box today is a reflection of Members wanting more services. That is why it is so important that we get the investment levels right and the train companies operating the kind of services passengers want.

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

Can the Secretary of State confirm that the open access slot on the east coast main line will still be available to services such as Hull Trains and will not be rolled up in any franchise tender document?

[Mr McLoughlin]

Yes.

[Duncan Hames (Chippenham) (LD)]

Wiltshire’s passenger rail offer stands to benefit from a multi-million pound grant from the coalition Government’s local sustainable transport fund. Now that the future of the franchise is clear, what is the Secretary of State’s advice to the promoter, Wiltshire council, and to First Great Western? Is it more “wait and see”, or that they should now get on with it?

[Mr McLoughlin]

I think I would need a bit more notice before answering that question. If my hon. Friend writes to me, I will look at the issues in more detail. [Interruption.] The Under-Secretary of State for Transport, my hon. Friend the Member for Lewes (Norman Baker), says, “Just get on with it.”

[Henry Smith (Crawley) (Con)]

I very much welcome my right hon. Friend’s statement. Thameslink and Southern Railway recently announced new rolling stock to operate from the four stations within my constituency. Can he assure me that the changes to rail franchising announced today will not affect the delivery of that rolling stock?

[Mr McLoughlin]

It certainly should not affect the delivery of the new trains. I know of no reason why it should and if I am wrong, I will obviously write to my hon. Friend.

[Penny Mordaunt (Portsmouth North) (Con)]

Portsmouth’s experience of franchises awarded under the last Government was that the rolling stock was downgraded from the agreement. When will passenger comfort and service standards be written into the agreements, to ensure that passengers have access to a toilet and that commuters are not crippled by suburban rolling stock being used on main line routes?

[Mr McLoughlin]

I am very disturbed to hear what my hon. Friend says, and I will certainly look into her points and get back to her in more detail in the very near future.

[Stephen Mosley (City of Chester) (Con)]

There have been massive improvements on the west coast main line since privatisation and Virgin, but one way to improve things in the future—to continue improving competition and to keep down costs—would be by encouraging more operators to enter the market. Is there anything in my right hon. Friend’s statement that would encourage open access operators to come in on more existing services?

[Mr McLoughlin]

There are some open access services, to which the hon. Member for Kingston upon Hull North (Diana Johnson) referred, on the east coast main line. I believe that applications for other open access services are with the Office of the Rail Regulator at the moment. I am happy to look at those and act on advice when I get it from the rail regulator.

[Mark Pawsey (Rugby) (Con)]

Rail users in Rugby will welcome the Secretary of State’s announcement about the Virgin franchise being extended on the west coast main line. Will he reassure my constituents that an extra 29 months will be enough to encourage Virgin to continue to invest in the railway?

--- Later in debate ---

[Mr McLoughlin]

I know that Virgin is keen to continue with investments on that line and is happy to receive representations, both from my hon. Friend and from me, if good cases are made for investment that has a positive return.

[Rehman Chishti (Gillingham and Rainham) (Con)]

I thank the Secretary of State for his statement. May I also thank him for reducing train fares in the south-east by reducing the retail prices index plus 3% provision to RPI plus 1%? Under the previous Government, Southeastern had RPI plus 3% whereas the rest of the country had RPI plus 1%, and that was exceptionally unfair.

[Mr McLoughlin]

I am grateful to my hon. Friend for that. The truth is that we are putting massive further investment into the railways. That has to be paid for by both the fare payer and the taxpayer, but it is right that we try to get that balance right. I am pleased that the Chancellor was able to take the increases down to RPI plus 1%, not only for this year, but for next year.

[Mr Marcus Jones (Nuneaton) (Con)]

I welcome my right hon. Friend’s statement and his intent to put the interests of passengers at the heart of rail franchising. The best interests of rail passengers in my constituency would be served by the reinstatement of fast off-peak services to Nuneaton, which were taken away by the previous Labour Government in 2008. Will he come to Nuneaton and meet me to discuss this vital issue at greater length?

[Mr McLoughlin]

I am certainly more than happy to meet my hon. Friend at Nuneaton station. I believe that a date is going in my diary this afternoon—if it was not already, it will be now.

[Dr Thérèse Coffey (Suffolk Coastal) (Con)]

Suffolk commuters will be disappointed by the delay, although they are used to it as passengers, even though things have improved under Abellio. Will my right hon. Friend assure me that this will not deter or delay the needed investment in the freight line from Felixstowe to Nuneaton?

[Mr McLoughlin]

The announcements I have made today will have nothing to do with the freight line. Again, I make the point to my hon. Friend that we are seeing not only an increase in passenger numbers, but a huge increase in the amount of freight using our railways—I believe that the figure is about 60%. I know that most colleagues and the general public welcome that very much.

[Mr Speaker]

Order. Questions from 34 Back Benchers were answered by the Secretary of State in 25 minutes of exclusively Back-Bench time, which is an impressive record. Might I suggest that rather than sending his ministerial colleagues an Easter egg, the Secretary of State should send a DVD of the statement and the exchanges on it, which will be a great example for them to follow in the future?

Rail Franchising

Lord McLoughlin Excerpts

Tuesday 26th March 2013 Written Statements

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

This morning I have announced to the stock market our long-term plans for rail franchising. This plan is designed to drive improvements to rail services, deliver on major infrastructure projects, and put passengers at the heart of a revitalised rail franchising system.

In addition to publishing a detailed timetable for all rail franchises over the next eight years, I am announcing the immediate start of the competition for the east coast franchise, currently directly operated, with the expectation the new franchisee will carry its first passengers by February 2015.

The new programme will provide long-term certainty to the market and support the delivery of the Government’s £9.4 billion rail investment strategy for 2014-19. The future competitions will also place passengers in the driving seat by ensuring that their views and satisfaction levels are taken into account when deciding which companies run our railway services.

In rolling out the programme the Department for Transport will work closely with the industry to negotiate further new services and more capacity in all franchising contracts while delivering the best deal for both passengers and taxpayers.

Delivering on Brown review recommendations, the new programme will provide a more sustainable schedule for rail franchising by delivering no more than three to four competitions per year, and staggering the two principal inter-city franchises, west coast and east coast, so they will not be let at the same point in the economic cycle.

In order to roll out the programme and stagger future competitions, it will be necessary to exercise a number of contractual extensions with current operators and to negotiate a series of direct awards with current operators. During these discussions the Department will look to negotiate further passenger benefits, which will ensure the best deal for tax payers. As a result, I will later today be serving notice on First Capital Connect and Southeastern to call seven period extensions available in their contracts.

The new franchise programme is set out below:

Search and Rescue Helicopter Services

Lord McLoughlin Excerpts

Tuesday 26th March 2013 Written Statements

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

On 28 November 2011 the Department for Transport started a competition to procure search and rescue helicopter services to replace the joint capability provided by the Royal Air Force, Royal Navy, and Maritime and Coastguard Agency (MCA). The procurement process has now finished, and I wish to inform the House of the results.

I am pleased to announce that a £1.6 billion contract has been signed today to provide a search and rescue helicopter service for the whole of the UK with Bristow Helicopters Ltd. I would like to recognise the very high quality and the maturity of the bids provided by the two companies who reached the final stages in this vital competition for an emergency service in the UK. In buying such an important service that protects the safety of individuals in our maritime industries and in dangerous conditions on land and around our coastline, it is vital that we had a robust competition with credible and thoroughly developed propositions from industry. I am confident that we did. I am equally confident that the contract we are entering into with Bristow Helicopters Ltd represents the best solution for the UK over the next 10 years.

This contract represents a major investment by the Government in providing a search and rescue helicopter service using the most up-to-date helicopters and meeting the highest professional standards. Operations will commence progressively from 2015 and the service will be fully operational across the United Kingdom by summer 2017.

The contract will enable the RAF and Royal Navy to withdraw from search and rescue activities in the UK and retire their fleet of Sea King SAR helicopters. It will also ensure service continuity when the current contracted MCA service expires. Services under the new contract will operate from 7 to 10 years and will be managed by the Maritime and Coastguard Agency.

Experience of front-line operations has informed the military decision that the skills required for personnel recovery on the battlefield and in the maritime environment can be sustained without the need for military personnel being engaged in UK search and rescue. I want to pay tribute to the outstanding service personnel who have displayed such enduring commitment and bravery in RAF and Royal Navy search and rescue squadrons. The service they have provided for over 70 years has been exemplary and the country owes them all an enormous debt of gratitude. The decision to cease military involvement in search and rescue in the UK was not made lightly. But with the Sea King nearing its 40th year of service, the time has come to change the way the service is provided and the aircraft used.

The Maritime and Coastguard Agency, and its predecessor bodies, has 30 years experience of operating contracted search and rescue helicopter services using civilian aircrew. The existing MCA search and rescue contracts have delivered services of the very highest standards, and highly skilled civilian crews have won numerous awards for their bravery and dedication.

Bristow Helicopters Ltd is a UK company which has 36 years experience of providing search and rescue services in the UK, including 24 years with the MCA. The company has received numerous awards for SAR missions its civilian crews have undertaken, including chief coastguard’s commendations, coastguard rescue shields, the Prince Philip helicopter award and the Queen’s commendation for a mission in which 60 seamen were rescued.

Bristow Helicopters Ltd has completed more than 44,000 search and rescue operational hours in the UK and conducted over 15,000 missions, during which more than 7,000 people have been rescued by their crews.

The new service will operate a mixed fleet of 22 state- of-the-art helicopters from 10 locations around the UK. Sikorsky S92 helicopters will continue to be based at the existing MCA bases at Stornoway and Sumburgh, and at new bases at Newquay, Caernarfon and Humberside airports. AgustaWestland AW189 helicopters will operate from Lee on Solent, Prestwick airport, and new bases at St Athan, Inverness and Manston airports. All bases will be operational 24 hours a day. These base locations are strategically placed near areas with high SAR incident rates and will help ensure maximum operational coverage across the UK while reducing transit times to incidents.

This combination of aircraft and base locations will provide a world-class search and rescue capability. Helicopters will be able to reach a larger area of the UK search and rescue region within one hour of take off than is currently possible, and based on historic incident patterns we estimate that there will be an overall 20% improvement in flying times, with the average flight time reducing from 23 minutes to 19. Presently, approximately 70% of high and very high risk areas are reachable within 30 minutes. Under the new contract, approximately 85% of the same areas are reachable within this time frame.

The new contract will see the creation of over 350 new jobs. The AW189 will be assembled at AgustaWestland’s factory in Yeovil and Sikorsky plans to locate a supply hub in the Aberdeen region that will support not only the UK SAR programme but also Sikorsky’s large fleet of helicopters in the region serving the important offshore oil sector. The contract will have a significant impact on the UK supply chain, providing and sustaining jobs and apprenticeships.

The safety of professional mariners, aviators, all those travelling by sea or air, and all of those enjoying our seas, coasts and mountains for business or leisure is of paramount importance. This new contract, which will match or exceed our existing search and rescue capability, will ensure that this country’s search and rescue helicopter service will be the standard bearer, both in Europe and beyond.

GLA Transport Grant

Lord McLoughlin Excerpts

Monday 25th March 2013 Written Statements

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

Following consultation with the Mayor of London, I have today determined the GLA transport grant for 2013-14 at £1.988 billion.

This grant is provided by the Government to Transport for London to deliver transport services and investment in the capital, including London Underground.

In line with my predecessor’s 20 October 2010 letter to the Mayor “Spending Review 2010: TfL funding agreement” £894.960 million of this grant is designated an investment grant to support delivery of the tube upgrade programme and other projects, as set out in annex B of the 20 October letter, and the remaining £1.09 billion is for the purposes of TFL.

EU Transport Council

Lord McLoughlin Excerpts

Monday 18th March 2013 Written Statements

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

I attended the first Transport Council of the Irish presidency (the presidency) in Brussels on Monday 11 March.

The Council held a debate on the proposal for a directive of the European Parliament and of the Council on the interoperability of the rail system—part of the Commission’s fourth railway package. The aim of the proposal is to address concerns about significant delays and costs associated with vehicle authorisation that can occur in some member states (although this is not a problem within the UK). The proposal would also make a key change to the process for the authorisation of rail vehicles in the EU. It is proposed that this activity is only carried out by the European Railway Agency instead of by the national safety authorities within each member state. I noted that while there were clearly problems with the authorisation process which merited consideration, these were not causing particular problems in the UK. I suggested that the rail undertaking could be given a choice to go to either the national authority or the European Rail Agency for approval of rolling stock.

The Council also debated the recently published legislative proposal that would require member states to make available adequate infrastructure for alternative fuels. I welcomed the proposal and supported work to harmonise technical standards for alternative fuels, but noted that a technology neutral approach was needed.

The presidency reported on progress at official level discussions on the air safety reporting on occurrence. The Commission stated that the aim of the proposal was to provide a more efficient and uniform occurrence reporting system, focused on improving safety which would enable personnel in safety critical roles to freely report incidents without fear of recrimination.

Under any other business, the Commission gave an update on its “Stop the Clock” proposal on the aviation ETS directive. This proposal which is in the final stages of adoption, aims to facilitate a global agreement on tackling emissions from aviation at the General Assembly of the International Civil Aviation Organisation (ICAO) in September 2013.

EU Transport Council

Lord McLoughlin Excerpts

Thursday 7th March 2013 Written Statements

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

I will attend the first Transport Council of the Irish presidency (the presidency) taking place in Brussels on Monday 11 March.

There will be an introductory discussion on the proposal for a directive of the European Parliament and of the Council on the interoperability of the rail system within the European Union (recast) (part of the fourth railway package). The UK is keen to hear the range of views and will then need to further consider the impacts through consultation with our stakeholders.

There will be an exchange of views on a proposal for a directive of the European Parliament and of the Council on the deployment of alternative fuels infrastructure and on a communication from the Commission on “Clean Power for Transport: A European alternative fuels strategy”, making up the clean power for transport package. The UK strongly supports the transition to cleaner transport and has the ambitious vision of almost every car and van reaching zero CO₂ emission levels at the tailpipe by 2050.

While I recognise that alternative fuels infrastructure is an area that can benefit from support, I am not convinced that setting rigid, mandatory targets for the deployment of technology-specific infrastructure is an effective way of building consumer confidence in new technology.

A progress report will be provided on a proposal for a regulation of the European Parliament and of the Council on occurrence reporting in civil aviation amending Regulation (EU) No. 996/2010 and repealing directive 2003/42/EC, Commission Regulation (EC) No. 1321/2007 and Commission Regulation (EC) No. 1330/2007. I fully support this proposal and welcome the progress that has been made.

Under any other business, the Commission will provide information on the aviation emissions trading scheme (ETS) and on the EU-Brazil comprehensive air transport agreement.

Oral Answers to Questions

Lord McLoughlin Excerpts

Thursday 28th February 2013 Commons Chamber

[Mr James Gray (North Wiltshire) (Con)]

1. How many new railway stations have been opened since privatisation; and how many further stations are planned in the future.

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

Since May 1996, 56 stations in England and Wales have been opened. Local authorities, passenger transport executives, devolved bodies and Transport for London lead on the planning and promotion of stations. We are aware of about 40 stations which are being considered for opening by these bodies in England and Wales.

[Mr Gray]

The mayor of Bristol has recently announced ambitious plans that would include the reopening of Corsham station, a project for which many of us have campaigned for many years, ably led for much of his 31 years as a councillor by Councillor Peter Davis. Does the Secretary of State agree that if we are to get people off the roads and on to trains, we must do all that we can to make the mayor’s vision of a reopened Corsham station a reality?

[Mr McLoughlin]

I am grateful to my hon. Friend for bringing to my attention the excellent work that has been done by Councillor Davis in his constituency for a very long time. I am also aware of my hon. Friend’s campaigning efforts in relation to stations in his area. He will be aware that bids are being considered under the new stations fund, and I hope to make an announcement shortly.

[Mr Speaker]

I have been informed that the microphones are not working. I am sure that the Minister will make himself heard.

[Mr McLoughlin]

This Government are very committed to infrastructure, as demonstrated by our investment plans for electrification and other rail projects. We have committed to doing more in five years than the Labour Government did in 13. We have a very ambitious programme. There are 808 recommendations.

[Charles Hendry (Wealden) (Con)]

As a result of this investment programme, my constituents can now travel from a beautiful new station in Uckfield to the increasingly impressive station at London Bridge. Will my right hon. Friend look again at the availability of diesel rolling stock, so my constituents can have the same comfort on their journeys as they have at the stations?

[Mr McLoughlin]

Of course I am always prepared to listen to representations made by my hon. Friend on matters such as rolling stock. The new station at Uckfield is indeed fantastic, and I am aware that there is a huge amount going on at London Bridge.

[Heidi Alexander (Lewisham East) (Lab)]

20. The stations that my constituents in south-east London would like to see opened are a Bakerloo line station at Lewisham and a docklands light railway station at Catford. Those, of course, would also require major extensions to existing lines. Will the Minister tell me what planning if any is being carried out by his Department and Transport for London about the longer-term strategic transport needs in this part of London?

[Mr McLoughlin]

I thank the hon. Lady for her question. I can reassure her that all these matters are being looked at closely by Boris Johnson, Transport for London and the Greater London Authority.

[Kris Hopkins (Keighley) (Con)]

2. What recent progress has been made on high speed rail; and if he will make a statement.

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

In January this year, I announced my initial route and station options for phase 2, from Birmingham to Leeds and Birmingham to Manchester. I intend to launch the consultation this year, earlier than previously planned. I have also set out my intention to secure the authority for departmental expenditure on HS2 phase 2 by way of a paving Bill, when parliamentary time is available.

[Kris Hopkins]

I am delighted that the Government have pledged to deliver HS2. Can my right hon. Friend give a further commitment to ensure that the financial benefits flowing from the pre-construction phase will be felt along the length of the line, particularly among firms in west Yorkshire, which are ready, willing and very able to assist?

[Mr McLoughlin]

I am grateful to my hon. Friend. Last week I made a trip to the north-east talking to a number of companies. I am aware that many companies up there and in other places along the route are interested in, and prepared to be involved, in all phases of HS2. It is a beneficial project for the whole United Kingdom and I can assure my hon. Friend that we will be looking at ways to involve British business in all aspects of the HS2 programme.

[Tristram Hunt (Stoke-on-Trent Central) (Lab)]

16. The updated case for HS2 involves significant downgrading of provision and a collapse of existing services to Stoke-on-Trent so that Milton Keynes can have its high-speed service. How does this help rebalance the economy and why is my constituency being disadvantaged by HS2?

[Mr McLoughlin]

Two weeks ago, I met representatives from Stoke, Newcastle-under-Lyme and Stafford. I welcome all views, and we will take a final decision on the route after the full consultation. The hon. Gentleman should be a bit more enthusiastic about such things.

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

If HS2 goes ahead, it will do significant damage to our Buckinghamshire constituencies and the Chilterns designated area of outstanding natural beauty. We need the best environmental protection. Will the Secretary of State undertake to consider carefully this document I have with me? It is the Buckinghamshire mitigation plan, which has been painstakingly produced and endorsed by all our councils in Buckinghamshire, our business leaders and organisations, and it is intended to form the basis of a constructive and positive outlook for HS2.

[Mr McLoughlin]

I had better be careful how I answer my right hon. Friend. I will study the document she has given to me and ask for it to be studied by officials in my Department. We will do all we can to minimise damage in her area.

[Maria Eagle (Garston and Halewood) (Lab)]

The Opposition firmly support HS2, but we want it delivered. It is therefore worrying that the Government’s mid-term review referred not to enacting, but to “carrying forward legislation”, even though the Secretary of State’s departmental plan continues to claim Royal Assent will be secured by May 2015. Will he confirm that, with all the dither and delay, botched consultations and judicial reviews, the hybrid Bill is still on track to secure Royal Assent in this Parliament?

[Mr McLoughlin]

This Government will have achieved far more in five years to build high-speed rail in this country than the previous Government did in 13. All I would say is that we are still on target to meet our aims by the end of this year. As to its progress once it is before Parliament, I really cannot say any more at this stage.

[Maria Eagle]

The Secretary of State has introduced some confusion, because we are meant to have two Bills. One is paving legislation, which we have not seen and we do not know what it does, and the second is the hybrid Bill that he said would be completed in this Parliament. He should be clear what Bills he will introduce and when. Which Bill will he introduce: a measure simply to give the impression of action or the hybrid Bill that we need if this vital scheme is ever to be built?

[Mr McLoughlin]

I am pleased to have the Opposition’s support in bringing HS2 to fruition. The simple point is that a paving Bill will deal with certain financial responsibilities. I am happy to discuss the details further with her. The hybrid Bill—the measure that seeks planning approval—is still on course to be introduced by the end of the year.

[Michael Ellis (Northampton North) (Con)]

3. What progress he has made on devolving speed limits to local authorities.

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

8. When he expects to meet the new owners of Stansted Airport.

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

I have no immediate plans to meet the new owners of Stansted airport, as the sale has not yet been completed. However, I have no doubt that effective working relationships established between my Department and the airport will continue under its new owners, and I look forward to meeting the management team at an appropriate time in the future.

[Sir Alan Haselhurst]

What assurances can my right hon. Friend give to Manchester Airports Group, which will shortly be taking charge at Stansted, about improved train journey times from Liverpool Street to the airport, over and above the welcome but insufficient addition of the third track between Tottenham Hale and Angel Road?

[Mr McLoughlin]

I am grateful to my right hon. Friend for the acknowledgement that the third track will make a difference to the areas he mentioned. Obviously, we are always willing to discuss with airport operators how best to improve infrastructure connections, and I will be more than happy to do that once the new ownership arrangements are finally in place.

[Jim Shannon (Strangford) (DUP)]

rose—

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[Mr Speaker]

I fear I was too generous.

[Mr McLoughlin]

Let me address the issue of Stansted airport. I am pleased that the Stansted sale has taken place, as it brings competition into the airport system, and I know that my right hon. Friend the Member for Saffron Walden (Sir Alan Haselhurst) has supported and advocated that for some time. As for the hon. Gentleman’s point about wider airports, obviously every case has to be looked at individually by the proper authorities.

[Mr Robin Walker (Worcester) (Con)]

9. What progress his Department has made on funding new railway stations.

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[Mark Tami (Alyn and Deeside) (Lab)]

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

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

At the end of January, I was pleased to be able to announce to the House the preferred route for phase 2 of HS2. This is a once-in-a-generation opportunity to transform Britain’s connectivity, capacity and competitiveness. Last year, we announced the creation of a £20 million new station fund to be used to open new stations in England and Wales. I launched the competition in January, and I very much hope to make an announcement by the end of March on which stations have been successful. We have also received a large number of bids for the £170 million local pinch-point funds, the applications for which closed last week. We hope to make an announcement shortly.

[Mark Tami]

Will the Secretary of State update the House on any talks he has had with the transport Minister in Wales about the electrification of the Wrexham-Bidston line? When does he finally hope to make progress and when can we finally have a station that serves the Deeside industrial estate?

[Mr McLoughlin]

I am due to meet the Minister in Wales shortly to discuss a number of issues. I am sure that the hon. Gentleman’s point will be one of the particular issues we discuss. We have made major announcements about electrification in Wales. I realise that it affects south Wales, but I hope that the hon. Gentleman will think it a move in the right direction.

[Karl MᶜCartney (Lincoln) (Con)]

T2. Lincoln finally has one daily direct service to London despite being promised seven up-and-down daily links at the 2010 general election. Will the Minister assure me that when the new franchise is put out to tender, my constituents will see an expansion of direct daily services and weekend services, as we are well aware of the need for our expanding city to enjoy as many rail links to the capital as other cities across our nation?

[Mr McLoughlin]

My hon. Friend now serves on the Select Committee, and will therefore be well able to keep an eye on these matters. We are always being asked for extra services, but I assure him that I am well aware of the case for Lincoln, especially in the light of the important celebrations that will take place next year. I will certainly consider it, and will judge it in the context of all the other opportunities that we have, and requests that we receive, for the provision of extra services.

[Stephen Timms (East Ham) (Lab)]

Does the Secretary of State agree that, following the interconnection between High Speed 1 and High Speed 2, we will need a greater capacity and three trains per hour?

[Mr McLoughlin]

At least the right hon. Gentleman is consistent. As I have said on several occasions, I will consider what he has said and try to ensure that we provide that connectivity. There is also the question of trains running directly from Old Oak Common to the continent, which we will need to judge as we judge all other matters relating to high-speed rail.

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

T3. Rail passengers trying to book the cheapest fares are faced with a bewilderingly complex system. I hope that the fares and ticketing review will result in a much more simple, straightforward system. Can my hon. Friend tell me what progress is being made towards that?

[Natascha Engel (North East Derbyshire) (Lab)]

Was an upgrade of the current midland main line service considered as a cheaper, faster and far less destructive alternative to the building of a new London to Leeds HS2 route? If not, why not?

[Mr McLoughlin]

As I announced in my statement on the subject, HS2 is also about capacity. We are upgrading the line to which the hon. Lady referred, and I hope that its electrification during the period between 2014 and 2019 will benefit her constituents.

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[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

Following the well-documented problems with the west coast main line refranchising, a lot of concerns have been raised about Department for Transport decisions that may have left it less able to deal with refranchising as efficiently as we would all like. When will consultation begin on the refranchising of the Northern and Trans- Pennine Express franchises, both of which are extremely important to my constituents?

[Mr McLoughlin]

As was said earlier, I intend to make a statement about franchising in the light of the Brown inquiry findings, and I hope to make that statement soon.

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

T6. On Thursday 23 November I asked my right hon. Friend the Secretary of State if he had been able to make an assessment of the impact of the floods in the south-west on Plymouth’s economy. My right hon. Friend replied saying it was far too early to make such an assessment. What progress has he been able to make on this, and on fixing the railway line between Exeter and Plymouth?

[Mr McLoughlin]

I am grateful to my hon. Friend for the way in which he properly and consistently raises this point. He attended a meeting in the House with the chief executive and other senior people from Network Rail and also from FirstGroup, which I organised. It gave my hon. Friend and other colleagues the opportunity to put these questions to them. I shall visit my hon. Friend’s constituency later this year, and we will be talking more directly about these issues.

[Mr John Spellar (Warley) (Lab)]

If the Minister, the hon. Member for Wimbledon (Stephen Hammond), refers to the text of the answer to Question 18, he will be aware of the scandal surrounding wheel-clamping and the involvement of criminal elements which led to its banning. There are now concerns that these undesirables are moving across into ticket parking control. Already 300 companies will have direct or indirect access to the Driver and Vehicle Licensing Agency database. What steps is he taking to prevent abuse, and will abusers be denied access very quickly?

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

Can the Secretary of State confirm that landowners along the proposed High Speed 2 route are well within their rights to refuse access to consultants from HS2 Ltd who want to survey their properties and land? Will he assure me that the paving Bill will not be used to remove those rights from landowners and home owners, but will simply be used to regularise the expenditure on HS2, which has not yet been authorised by Parliament?

[Mr McLoughlin]

When we present the paving Bill, my right hon. Friend will be able to see its contents. I have not yet secured the parliamentary time to be able to present it, but I very much hope to be able to do so— I say that as I look at Members who have far more influence in this matter than I do these days. At the beginning of questions, my right hon. Friend presented to me a substantial document setting out some of the improvements she would like. In order to put them in place, we will need access to some of the land.

[Mr Clive Betts (Sheffield South East) (Lab)]

On the welcome electrification of the midland main line, I am sure the Secretary of State will agree that one of the objectives is to reduce journey times, so will he confirm that the rolling stock on the newly electrified line will be the new intercity express trains that can complete the journey more quickly? The alternative is a cascade of existing rolling stock from other lines, but, because they are heavier with slower acceleration, we could find that we have longer journey times despite having spent a lot of money on electrification.

[Mr McLoughlin]

The hon. Gentleman and I share a close interest in this line as it serves both of our constituencies. I hear the representations he makes, but I am very pleased that we have been able to put the electrification of the line into the plan for 2014-19.

[Nick de Bois (Enfield North) (Con)]

My constituents living in the east of Enfield are delighted with the support from the STAR—Stratford-Tottenham-Angel Road—investment programme, supported by the Government, which includes a third rail track, thus providing a more reliable service than the one commuters have suffered under for far too long. Will the Minister also lend his encouragement to the continuation of investment along this line, so the full London Enfield-Stansted corridor can realise its economic potential?