High-speed Rail

Lord McLoughlin Excerpts

Monday 24th March 2014 Commons Chamber

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

The past few days have brought important proposals to make the most of High Speed 2. They will help us to build the line better, bring benefits to the north sooner and support job creation and economic growth. I wanted to update the House at the first opportunity and I am sorry that, for unavoidable reasons, I was unable to do so last week.

The proposals are welcome, because HS2 is a vital project. It can do for future generations what the Victorian railways did for previous generations and what the motorways did for ours. That is why it has the strong support of the Government and why cities in the midlands and the north are calling for its benefits to be spread as widely as possible. We must heed that call, but if that is to happen, we must also get the basics right, stick to the cost, plan well, listen, respect the environment, build what really works and what we need for the future, and ensure that people get the benefits as quickly as possible.

I know, too, that HS2 is just part, although a vital part, of our long-term economic plan—one that will see better infrastructure for all parts of our country. It is a clear and ambitious plan that is already paying dividends, as shown by last week’s welcome decision by Hitachi, the company that invented the bullet train, to move its global rail headquarters to Britain. That is the sort of opportunity presented by HS2.

First, let me respond to the report by Sir David Higgins. He began work as chairman of HS2 in January and the first task I set him was to consider how to maximise the benefits of HS2 and manage the costs. Last year, Parliament backed the principle of a high-speed rail link to the north with 350 votes in favour and only 34 against. It is now up to us to make that happen and, given his great track record, there is no one better suited to the job than Sir David Higgins. Let me turn to his proposals.

First, on costs, Sir David has reviewed the cost estimates for constructing phase 1 and confirmed that they are realistic. The budget set by the Government in 2013 stands. As experience shows, in Britain we can build great projects on time and on budget, such as High Speed 1, Crossrail and the Olympics. At this early stage, however, before Parliament has considered the hybrid Bill, we must include a proper contingency. Of course, for popularity’s sake, one option would have been to slash the contingency and claim that as a saving. Sir David said that that would be wrong and I agree, but, as he also says, with growing certainty comes growing confidence. That will be the stage at which we can bring down the contingency.

Let me turn to Sir David’s second proposal. I have heard many hon. Members asking why we cannot build in the north sooner. I agree, and we can. Sir David’s report suggests opening the new line to a new hub station in Crewe six years earlier than planned. Direct trains will of course be able to run off HS2 lines to serve places such as Stoke, Liverpool, Manchester, north Wales and Scotland, and faster too, and the line to Crewe sooner would mean journeys that are shorter than they would be under phase 1—journeys that are quicker to Manchester, quicker to Liverpool and quicker to Scotland. That is a welcome proposal and I am commissioning HS2 Ltd to undertake the work to allow it to be considered in detail, but that must be an acceleration of phase 2 and not an alternative. Sir David says that we must make the most of this investment so that as many towns and cities as possible benefit. I agree, and we will make sure that that happens.

Let me turn to Sir David’s third proposal, for the south-eastern end of the line. Our priority must be to get the benefits to the midlands and the north as soon as possible. In short, we must put the money and time where they can do the most good. Sir David is clear that he does not think that the existing proposals for a HS1-HS2 link meet the test. The HS1-HS2 link proposed in the hybrid Bill has not secured consensus. It requires too many compromises in terms of its impact on freight, passengers and the community in Camden. I therefore intend to remove the link from the hybrid Bill and withdraw safeguarding as soon as possible. I will also commission a study of options for ways to improve connections to the continent, which could be built once the initial stages of HS2 are complete.

I also agree with the report that much more can be made of Euston station, not just to build something of which we can be proud but to maximise the economic potential of the line, to use a site that has been neglected and to generate private sector investment that can reduce the overall burden on the taxpayer. I will therefore ask HS2 and Network Rail to develop comprehensive proposals for the redevelopment of Euston.

Our ambitions for Euston must not, however, conflict with our commitment to control costs. I want to see a substantial private sector investment to ensure that. Let me therefore turn to the report from the HS2 growth taskforce, published last week. It comes from an impressive panel including business leaders such as Sir John Rose, Alison Nimmo and Ray O’Rourke, city leaders such as Julie Dore from Sheffield and the general secretary of the TUC, Frances O’Grady. I thank everyone involved, and especially the commercial secretary for his committed leadership. Their message is clear: we need HS2, and we need to act on how to squeeze the most jobs, skills and growth from it. The taskforce’s recommendations are plain common sense. They are things that business, the Government and cities can do together, and must start doing now: on skills, proper training to make sure that our young people get the best jobs on the project; on planning, ensuring that the line brings new strength to our cities; and, on transport, making sure that we link the existing road and rail network properly to HS2 and plan investment to bring them together.

Regeneration and economic growth are vital parts of HS2. City leaders have already started to put plans in place, but the Government have a role to play, too. That is why I am asking HS2 Ltd and London and Continental Railways, which developed the King’s Cross-St Pancras site, to come forward with proposals for a regeneration company that will respond to the growth taskforce’s recommendations on regeneration. This matters because, as I have said before, HS2 is a project that will be built over many Parliaments—and no doubt Governments, too—and will serve many people through the generations. It is not the only answer to our transport needs, but it is a central part of the answer, and that means designing it carefully and building it right. It is about something that works, something of which we can be proud, and something that benefits as many people and places as possible at the lowest cost.

We are on schedule to open the line in 2026 which, by the way, is exactly the date that the previous Government set in 2010, or ahead of time in the case of the Crewe proposals. The Government are keen to rise to the challenge and I hope that hon. Members on both sides of the House will do the same.

[Mary Creagh (Wakefield) (Lab)]

I thank the Secretary of State for advance notice and early sight of the statement. May I also congratulate Sir David Higgins and Lord Deighton on their substantial and thorough reports?

Transforming rail capacity south of Birmingham and improving connectivity north of Birmingham are vital and will transform our great cities. We support HS2 because of the capacity constraints that too many commuters on our railways face. We will continue to hold the Government to account for keeping costs down on the project. We will vote in support of the hybrid Bill when the Government finally bring it to Parliament.

David Higgins has made it clear that there are significant savings to be made if Ministers get a grip of this project and stop the delays. He says:

“a lower budget for Phase One could be set at some point...but only when the legislative timetable becomes clearer and more certain.”

What steps is the Secretary of State taking to ensure that the phase 1 hybrid Bill is put before the House as soon as possible? The Government must now act so that the scheme can be delivered under budget.

Sir David recommended, and the Secretary of State has acted, scrapping the link between HS1 and HS2. That is welcome because the link was set to cause huge disruption to large parts of Camden. At Euston, Sir David proposes central London’s biggest regeneration site, with a mix of retail, office and residential units. Given the acute affordable housing crisis in Camden, a significant proportion of any new housing must be social housing. Does the Secretary of State agree that the community and council must be fully involved in those plans?

At Old Oak Common, where significant regeneration is planned, there is as yet no decision from the Government about the relocation of the First Great Western and Heathrow Express train depots. When can we expect a decision about linking HS2 and Crossrail into the west coast main line at Old Oak Common? That is key to maximising the development potential of the area and to improving the capacity for commuter services into Euston, which is crucial if there is to be a longer construction phase at Euston. When will those three important decisions be made? What contact has the Secretary of State had with the Mayor about setting up a development corporation to take regeneration plans for Old Oak Common forwards?

Sir David has listened to concerns from cities such as Milton Keynes, Northampton, Rugby, Stoke, Leigh and—yes—my city of Wakefield about how the line will connect to the current railway network and how their services into London can be improved. When can we expect the Government’s response to those significant issues in Sir David’s report?

On phase 2, we are glad that HS2 will link to future Network Rail classic rail investment and that the connections between our great northern and midland cities that we have called for have replaced the Government’s previous take-it-or-leave-it approach. We want a coherent transport plan for the north and the midlands, which have been historically underfunded, and for proper east-west links between Liverpool and Manchester and Leeds and Hull. A rebalancing of railway investment into the regions to close the economic divide: that is how we maximise the benefits for the whole country from this project.

We welcome the faster construction of phase 2 to bring benefits more quickly to the northern cities and north Wales. Will the Minister tell the House when the hybrid Bill for phase 2 would need to be completed in order to get to the north-west by 2026, as Sir David recommends? Sir David also recommends that discussions between council and business leaders and the Government should be conducted on a regional rather than a bilateral basis. When do the Government envisage such meetings starting, given the imperative to work fast to reduce costs? When will the Government announce their response to the phase 2 route consultation in order to get it started more quickly?

I turn to Lord Deighton’s growth taskforce report. He is correct that HS2 must become the spine for jobs, growth and regeneration in our country. His report wants cities to set up locally led delivery bodies to maximise the regeneration that High Speed 2 will bring. He warns:

“Even the very best authorities will be stretched to manage a project as complex and large as HS2”.

What help will the Government give councils whose budgets have been cut by 40% over this Parliament in order to do that? He says that land for development should be bought early before land prices rise and to reduce blight around the station sites. When will the Secretary of State set out which costs will be included in the costs of the High Speed 2 railway and which are excluded, so that councils can budget accordingly?

On transport, Lord Deighton wants the Government to set out their plans for commuter rail in non-high speed areas by the end of the year. Will the Secretary of State undertake to publish such a plan?

On skills, Lord Deighton warns that the railway work force are ageing. Some 10,000 new people are needed to work on the railways in the next five years alone, and he also states:

“Railways have an image problem.”

How does the Secretary of State plan to transform that image to entice young people of both sexes to work on the railways?

When will the site of the High Speed 2 skills college be announced? Wherever it is located, it must not be a stand-alone institution; it must reach out to cities and towns across the UK that have young people who want to work on High Speed 2. Which Minister is overseeing that skills work and how can procurement processes drive up the number of apprentices on the project?

On small and medium-sized enterprises procurement, the Minister must learn lessons from Crossrail, where SME contract numbers are high on volume, but the total value of those contracts is uncertain. We must ensure that the High Speed pound reaches all parts of the UK. It is vital that we maximise the opportunities that the new north-south line brings to our country. We are behind the project. We wait for the Government to rise to the challenge.

[Mr McLoughlin]

I thank the hon. Lady for her support. I am not sure how many questions she asked me, but I will try to answer the vast majority of the points she raised. There will be other points on which I shall respond to her in due course.

The right hon. Member for Holborn and St Pancras (Frank Dobson) has been a long-time critic of the HS1-HS2 link. It is right that we needed not only to listen to what local communities said, but to look at how we get a better link between the two stations of Euston and St Pancras. We are talking about a fundamental redevelopment of the whole of Euston station, which I think is the right thing to do. Anybody who has looked at those three stations over the past 20 years will have seen stations, particularly St Pancras and King’s Cross, where one would not really have wanted to spend any time at all. Today, they are destinations in their own right and show what can be done with proper work and careful consideration. That is why I think that a complete regeneration of Euston is necessary. I hope that we can address those problems. With regard to Old Oak Common, the Mayor has already announced his intention to set up a development corporation. I have regular meetings with him. In fact, I have one coming up this week.

It is right that we look at the overall cost, which of course is an important consideration. There is a £14 billion contingency built into the current budget of £42 billion. It has been left in place because at this early stage that is thought to be the right thing to do. One of the reasons why costs have gone up—it is important to reflect on this—is that we have taken exceptional steps to try to meet some of the environmental concerns that have been raised by many hon. Members, their constituents and communities. I do not apologise for that, because it is right that something that will be there for the next 150 years is built correctly and properly, as it will be.

The hon. Lady made an important point about skills development and the opportunities that that can bring, for example through apprenticeships. I will be looking at Crossrail, which I think has done incredibly well in trying to spread the benefits across the country, even though it is a London project. It benefits London in particular, but it also brings great benefits to the United Kingdom and the regions. I will also be looking at how Crossrail has tried to improve apprenticeships and develop skills across the industry. By the time it ends, the shovels will be on the sites for HS2, so hopefully there will be some cross-over.

This should send out a message to young people that the railway industry has a great future. What has happened to the industry over the past 20 years, with the number of passenger journeys rising from 750 million to 1.5 billion and continual growth each year, shows people who want a long-term future that the industry certainly offers good opportunities and work prospects. That is why it is important. I will write to hon. Lady in due course on the other points she raised.

[Mr Simon Burns (Chelmsford) (Con)]

The Higgins report is excellent and fully justifies Sir David’s appointment. However, can my right hon. Friend give the House a categorical assurance that the money that is to be spent on High Speed 2 will in no way affect the record billions being spent in control period 5 on the conventional railway and what is likely to be spent in control periods 6, 7 and 8?

[Mr McLoughlin]

May I first put on the record my appreciation for the contribution my right hon. Friend made to this project? He was also the last Minister to meet Hitachi in Japan and so might have had a great influence on its decision to move its rail headquarters to the UK. I congratulate him on that. He is absolutely right: some £38.5 billion will be invested in the rail network over the next five years, excluding the money being spent on HS2. It is absolutely essential that we make that long-term investment in our railways.

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

The reports from Sir David Higgins and the taskforce are very important documents. However, following the question from the right hon. Member for Chelmsford (Mr Burns), how can the Secretary of State demonstrate that investment in High Speed 2 will go together with investment in the existing classic line so that the whole network benefits?

[Mr McLoughlin]

The hon. Lady, as Chair of the Transport Committee, has spent a lot of time looking at that, and indeed has taken evidence from me, Network Rail and Sir David Higgins over recent months. She will know that there is huge investment. In her city, for example, in May this year we will see the first express train running from Liverpool to Manchester, which I welcome. It is part of the northern hub, with over £500 million of investment linking Liverpool, Manchester, Leeds and, eventually, Hull.

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

It is a reflection of the poor genesis of the project that, four years down the line, the Secretary of State is still making fundamental adjustments to the plans for HS2. It does not matter how many studies or justifications he puts forward, he needs to understand that for many of my constituents, it is like putting lipstick on a pig. However glossy the lipstick, HS2 is still a pig.

I am sad that the Secretary of State can stand at the Dispatch Box and say that he respects the environment when we are still not to have full tunnelling under the whole area of outstanding natural beauty in the Chilterns and when neither Front-Bench team has had the decency to talk about compensation. My constituents, and many people up and down the line, still do not know what the compensation package is, and it is about time that he came to the Dispatch Box and announced the generous and fair compensation that the Prime Minister promised.

[Mr McLoughlin]

I hope very soon to be able to make announcements about the Government’s proposals for compensation. I would just say to my right hon. Friend that on the one hand I am attacked for listening to people, and then on the other hand I am attacked for not listening to people. I suppose that is just one of the problems of dealing with big infrastructure projects—wherever we take them, there will always be people who are directly affected, and they will not be convinced of the necessity of them. However, I am convinced of the necessity of high-speed rail for our cities in the north.

[Frank Dobson (Holborn and St Pancras) (Lab)]

I welcome the Secretary of State’s decision to abandon the ridiculous proposal for the High Speed 2-High Speed 1 link across Camden Town, and I also welcome Opposition Front Benchers’ support on that matter. However, I cannot say the same about the proposal to go ahead with an even bigger redevelopment of Euston than was proposed before. It will mean that the homes of more than 500 people will be destroyed, and that the lives of about 5,000 people will be subjected for a decade to the noise, filth and disruption of the biggest engineering project in Europe. I hope that, even at this stage, at a time when looking back, looking forward and coming to different decisions is apparently still on the cards, the Government will at least consider having the initial London terminus at Old Oak Common.

[Mr McLoughlin]

The right hon. Gentleman has been consistent on the HS1-HS2 link. I do not need to tell him about the difference that has been made to the area around King’s Cross and St Pancras in his constituency—it is plainly there for all to see. Those of us who use St Pancras station faced a lot of inconvenience at the time when that development was going on, but given what we see today, it was worth it.

[Michael Fabricant (Lichfield) (Con)]

My right hon. Friend will know that Lichfield will be badly affected by HS2, with phase 1 ending and phase 2 beginning in the constituency. As a consequence, a line running from east to west will join what was to be the end of phase 1 with the west coast main line. That work will transform the leafy lanes of Lichfield into the marshalling yards of Lichfield. What hope can he give my constituents that the temporary east-west line will no longer have to go ahead, and that there will be significant improvements in the environmental plans proposed for Lichfield?

[Mr McLoughlin]

I am always ready to listen to my hon. Friend’s comments and points on these matters. I believe that, overall, HS2 will bring great benefit to the midlands, including Birmingham, which is an important city close to his own city of Lichfield. It is a matter of ensuring that areas such as his can also benefit from high-speed rail.

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

The Higgins report specifically highlights poor east-west connectivity as a problem on the rail network, such as that between Manchester and Leeds, to which I would add that between Manchester and Sheffield, which is directly relevant to Stalybridge and Hyde. Will the Secretary of State go into more detail about how he plans to integrate Network Rail’s existing investment plans with the relevant phase of HS2, specifically to address the east-west connectivity issue?

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[Mr McLoughlin]

The hon. Gentleman mentions the rail line that goes through the top end of my constituency, so I am familiar with his points. Our plans for the northern hub will greatly enhance the services he receives, as will ensuring that we build them in to benefit from HS2, which is possible. On Thursday a number of parliamentary colleagues will come on the high-speed Javelin line. It goes to Ashford and continues to service other parts of Kent, and it has been very successful.

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

I thank my right hon. Friend for making the statement to the House. My constituents and residents in the London borough of Hillingdon look forward eagerly to the statements on compensation. As I am sure he is aware, the borough of Hillingdon still has some outstanding matters, and the most pressing—which I ask him to look at urgently—is the relocation of Hillingdon outdoor activities centre. That is a valuable asset, and we must resolve its future shortly.

[Mr McLoughlin]

My right hon. Friend has never lost an opportunity to make that case for Hillingdon, and I assure him that I will look into it. I reassure him that I hope to say something about compensation in the very near future.

[Graham Stringer (Blackley and Broughton) (Lab)]

These are two excellent reports, and the Secretary of State is right to talk about ensuring that rail links help to provide the economic benefits from the high-speed links. When lines in the north of England are electrified, can he guarantee that, following the fiasco of the TransPennine Express, there will be electric trains to run on them?

[Mr McLoughlin]

Before we start talking about fiascos and the TransPennine Express, I chide the hon. Gentleman for not pushing a bit further and getting more electrification when he sat on the Government Benches, and getting more rolling stock—[Interruption.] He says he did, but he did not succeed. We are doing it, we are succeeding, and we will order the rolling stock.

[Greg Mulholland (Leeds North West) (LD)]

I support linking our northern cities with high-speed rail, but does the Secretary of State understand the concerns on the east side of the Pennines about the announcement of the Crewe hub? All along we were given assurances that the link to Sheffield and Leeds would happen at the same time as that to Manchester. Will he commit to looking at the “High Speed UK” proposal that links more cities more quickly and for considerably less cost?

[Mr McLoughlin]

There is a recommendation on the Crewe hub and I have not made a full decision on it yet. A consultation is going on about the Y section from Birmingham to Manchester and Birmingham to Leeds. It is important I do that properly, which is exactly what I will do.

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

The recommendation for the line to reach Crewe by 2026 is welcome, but does it allow for any possibility of the other sections of HS2 further north being completed earlier—and if not, why not? How does the Higgins study impact on the study being carried out by the UK and Scottish Governments to ensure that the benefits of HS2 reach Scotland as soon as possible?

[Mr McLoughlin]

The extension to Crewe will have a positive impact on Scotland. As I have said, trains will be able to continue running on, and the fact that they will go further up will have a positive benefit. That should reassure the hon. Gentleman.

[Mr William Cash (Stone) (Con)]

As the Secretary of State knows, my constituents are completely against these proposals and have been from the beginning. Furthermore, they are looking for proper compensation on principles that he knows I put forward in amendments to the project. Will he consider increasing compensation in line with the criteria that have already been provided to him in my amendments?

[Mr McLoughlin]

The full consultation process for the part of the line that goes through my hon. Friend’s constituency is ongoing, and no final decision has been made. I hope to be able to say something about the compensation relating to phase 1 very shortly.

[Mr Jack Straw (Blackburn) (Lab)]

May I thank the Secretary of State for the report and congratulate Sir David Higgins on it? Does the Secretary of State accept that the data on page 8 of Sir David Higgins’s report, which show that investment per head in London and the south-east has been running at least three times that of any other region, emphasise his point that this is not a zero-sum game between HS2 investment and investment in other services but rather the reverse—that this investment, properly co-ordinated with control period 6, should beget further investment in rail services across the north?

[Mr McLoughlin]

I am grateful to the right hon. Gentleman; I think he is right. I will not chastise him about when this huge extra expenditure in London was first committed to—we will leave that to one side. What is important is getting the long-term investment in infrastructure right for all the northern cities. That is vital to all of us who care about those cities, and those connections, and about making sure that they have the right opportunities. As I said in my statement, this kind of project does not happen over one Parliament but runs over several Parliaments. That is why it is so important to have as much cross-party support as possible for such a big scheme. I believe that this will be an evolutionary change in transport. As I said, it will do for future generations what the motorways have done for today’s generation.

[Sir Tony Baldry (Banbury) (Con)]

My right hon. Friend will clearly come to the House in due course with a statement on compensation. Will he give an undertaking that during the proceedings on the hybrid Bill he and ministerial colleagues in the Treasury will be willing to listen to suggestions on how the compensation scheme can be further refined, improved and targeted?

[Mr McLoughlin]

Of course I am always prepared to listen; that is partly what we have been doing in consulting on the existing scheme. People often come forward with proposals that increase the cost and then complain that the cost has been increased, so it is quite important that we get the balance right on these projects.

[Joan Walley (Stoke-on-Trent North) (Lab)]

In view of the Secretary of State’s commitment on Government funding to look at the prospects for opening up the line to Crewe that much earlier, what are the implications for the alternative proposal made by Stoke-on-Trent?

[Mr McLoughlin]

Sir David has made a recommendation to me and I am asking for work to be done on it. It is right that I then consider that alongside the representations that have been made by other cities in the north as part of the final consultation process. I am still engaged in that process, and I will do so.

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

I am all in favour of better links with Europe, at least in this context. Does the Secretary of State accept, however, that most of the demand for an HS1-HS2 link will be domestic? Will he learn from the sub-optimal interchange at Stratford and consider installing a travelator to get people quickly and easily between St Pancras and Euston?

[Mr McLoughlin]

One of the problems at the moment is that people cannot get to the northern cities by high-speed trains, yet they can get to Europe in that way. I want the people of Birmingham and Manchester to have the same opportunities as those who wish to travel from London to Paris or London to Brussels. My hon. Friend is absolutely right about the need to have a good link between Euston and St Pancras. Sir David says in his report, and has said to me, that that can be done at a much more efficient rate than what is currently planned under the High Speed 1-High Speed 2 link, which will now be removed from the Bill.

[Mr Andy Slaughter (Hammersmith) (Lab)]

I welcome the Government’s continued commitment to the Old Oak Common interchange, but I am alarmed that they are handing control of the whole area, including Wormwood Scrubs, to the Mayor of London, with instructions that any development must exclude separate funding schemes. Some 24,000 new homes are planned for Old Oak. How will the Government ensure that some of these are affordable homes for Londoners, and not the empty luxury flats for foreign investors that the Mayor prefers?

[Mr McLoughlin]

The hon. Gentleman is wrong about what the Mayor prefers. I think I am right in saying that he was one of the supporters of a Mayor for London. Perhaps he just does not like the democratic outcome and the Mayor he has today. I think the Mayor knows exactly what is needed at Old Oak Common and will act on it.

[Paul Maynard (Blackpool North and Cleveleys) (Con)]

As someone born in Crewe, I add my gratitude for any proposals to improve this transport renaissance. Will the Secretary of State clarify whether the connection to the west coast main line at Crewe will obviate the need for a connection at Wigan, as was proposed earlier? I do not wish to restrict the shadow Health Secretary’s future freedom of manoeuvre in this regard.

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[Mr McLoughlin]

I did not realise that my hon. Friend originally came from Crewe, which given its connections is a very important railway town, always has been and always will be. I will want to consider his point about the later connections on to the west coast main line in the light of Sir David Higgins’s recommendations.

[Mr Jim Cunningham (Coventry South) (Lab)]

Given that Coventry will not benefit from high-speed rail, what will the Secretary of State do about the potential investment vacuum in Coventry and similar cities, and what will he do about negative equity?

[Mr McLoughlin]

I very much believe and hope that HS2 will be beneficial to Coventry. The entire west midlands benefits from HS2 and Coventry is certainly part of that wider west midlands conurbation. I want to see greater interconnection between the cities, and we have the time to plan and get that right. In this control period and the next one for Network Rail, we will be able to build on certain proposals that I know Coventry wants. Representatives of Coventry have been to see me and made recommendations about certain line improvements that they want to see.

[Mr Robin Walker (Worcester) (Con)]

KPMG predicts benefits of more than £200 million for Worcestershire’s economy from HS2, so I broadly welcome the statement, but can the Secretary of State reassure my constituents that nothing in it precludes investment in faster trains between London and Worcester to address the absurdity that a journey of 130 miles, which took under two hours in 1910, takes more than two and a half hours today?

[Mr McLoughlin]

My hon. Friend is right. One of the problems that HS2 addresses in a way that no other proposals put before us will address is capacity. I very much hope that it will free up other journeys so that we can have faster journey times from cities such as Worcester.

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

The Minister will be aware that concerns have been expressed about the time for redevelopment at Euston and the potential impact on the west coast main line from Glasgow. Will he say more about that and about any impact on the Caledonian Sleeper service, which is important to the Scottish economy?

[Mr McLoughlin]

I fully accept that while huge works are going on at a station, there is disruption, so one of the questions that must be asked in the planning phase that HS2 is currently going through is how we minimise that. Inconvenience was caused at St Pancras for a number of years while redevelopment was going on, but, as I said earlier, nobody doubts that it was worth going through the pain as we have a far better station than we had previously, and I very much hope we can do the same for Euston.

[Martin Vickers (Cleethorpes) (Con)]

As the Transport Secretary knows, my constituency is a major hub for the rail freight industry. The growth taskforce suggested that the Government should invite the rail freight industry to set out how best it can take advantage of extra capacity on the existing network. Can my right hon. Friend outline what plans he has for this?

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[Mr McLoughlin]

One thing that is curtailing growth in the freight market in the UK is the capacity problems. I hope that, by freeing up capacity, we will see a lot more freight travelling on our railway lines. I urge the freight industry to come forward with proposals on how we can improve the situation, which I think we can.

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

In the light of the taskforce’s recommendations, will the Secretary of State confirm when he will set out the Government’s plan for how HS2 will affect the rail services of cities that are not on the route, such as Newcastle?

[Mr McLoughlin]

Newcastle will benefit from faster trains running up to Leeds and being able to continue on their current routes. The hon. Lady is right that more work needs to be done on that. It will be done and I will come to the House when it is complete.

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

I welcome the report and the Secretary of State’s statement. Opponents of HS2 in the north-west have claimed that although it might be beneficial for Manchester, it might suck investment out of other towns and cities in the north-west. Does my right hon. Friend agree that a new regional hub at Crewe will allow the benefits of HS2 to roll out to places such as Liverpool, north Wales and, of course, Chester, and support economic growth in those areas?

[Mr McLoughlin]

My hon. Friend represents a great city, which I have visited on many occasions. It will receive benefits from Crewe. The Under-Secretary of State for Education, my hon. Friend the Member for Crewe and Nantwich (Mr Timpson), who joins me on the Front Bench, has made it clear that the station will not only be very important for his constituency, but will serve the whole of the north-west, including the great city of Chester.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

The Labour Welsh Government recently changed their view on the Barnett consequentials from HS2, following questions from the Financial Times on why they were not backing Plaid Cymru’s position on a fair share for Wales. What representations has the Secretary of State received from the Welsh Government or the official Opposition to demand a fair share for my country?

[Mr McLoughlin]

There is no doubt that Wales will benefit from HS2. North Wales, in particular, will benefit from the proposals in Sir David’s latest report to build the line faster further north, because Crewe is a major interchange that serves north Wales.

[Eric Ollerenshaw (Lancaster and Fleetwood) (Con)]

If I understand the Secretary of State’s announcement correctly, high-speed rail will get nearer to Lancashire earlier, which obviously is a good thing. What implications does that have for earlier planning for an HS3 that goes beyond Manchester and Leeds?

[Mr McLoughlin]

If my hon. Friend does not mind, I think that that is a debate for another occasion. He is right that HS2 will have a major impact on the cities it serves and that we will have to go further as a result.

[Helen Jones (Warrington North) (Lab)]

Despite the reports, it remains the case that the initial preferred route for the second part of HS2 will devastate parts of Warrington, with the loss of businesses and jobs, and will possibly give us a worse service in the long run. Does not the proposal of a regional hub at Crewe give more impetus to the suggestion by Warrington borough council and others of a preferred route that would be of huge benefit to the western part of the region?

[Mr McLoughlin]

As I have said, a period of consultation is going on and I am listening to the representations. No firm decision has yet been taken. The Higgins report states what Sir David believes would be the best way forward at the moment. I will certainly consider that, but I will also consider other recommendations and representations.

[Jason McCartney (Colne Valley) (Con)]

I very much welcome the cross-party support for this transformative project. On the Higgins report and the proposed new Crewe interchange, will the Secretary of State do everything he can to give clarity and certainty to the Yorkshire leg of the Y, so that we can crack on with investing in and regenerating the areas around the proposed new stations at Leeds and Sheffield, and along the branch lines, such as the one from Huddersfield to Sheffield which goes through my constituency, that will bring better connectivity?

[Mr McLoughlin]

I am grateful to my hon. Friend. He is asking us to take on board the wider implications of HS2 across the area that it serves. I will certainly do that.

[Lucy Powell (Manchester Central) (Lab/Co-op)]

The Secretary of State echoes Sir David Higgins’s call for the benefits to be brought to the north-west and north of England faster. Other than the Crewe interchange—which I welcome, but which should not be seen as the only solution—what other avenues is he looking at? Will he speak to leaders of local authorities in places such as Manchester to bring forward funding and proposals sooner rather than later?

[Mr McLoughlin]

I am in touch with Sir Richard Leese, the leader of Manchester city council about the issues. Manchester has made some imaginative proposals on how the station should be built alongside Piccadilly station, and they are being looked at. There are good communications between the northern leaders and the Government on this issue.

[Mr Gary Streeter (South West Devon) (Con)]

My right hon. Friend knows that the people of the far south-west do not speak much about high-speed rail: our focus is simply on rail and getting reconnected to London after the storms of the winter. Can he assure us that, at the same time as spending all this money on the north and midlands, he will have sufficient to invest in an alternative or additional route between Plymouth and Exeter as soon as it has been identified by Network Rail?

[Mr McLoughlin]

My hon. Friend has long been an advocate of better rail services in the south-west. Following the storms, I said that I had asked Network Rail to do some detailed work on possible alternatives for the south-west, and that is happening. Network Rail is doing a huge amount of work to ensure the swift reopening of the Dawlish line, which is on course to happen on 4 April.

[Stephen Pound (Ealing North) (Lab)]

In congratulating my right hon. Friend the Member for Holborn and St Pancras (Frank Dobson) on his tenacity and hailing the relief of Camden as a consummation devoutly to be wished, may I tell the Secretary of State that the dispassionate observer would still feel that the lack of connectivity between HS1 and HS2 represents a problem for the future? Will he give thought to the possibility of an underground connection from Old Oak Common?

[Mr McLoughlin]

Many suggestions have been made for the connection between HS1 and HS2. First, all the high-speed trains are likely to stop at Old Oak Common, which will also be served by Crossrail, and secondly Euston and St Pancras stations are not that far apart.

[Sarah Newton (Truro and Falmouth) (Con)]

HS2 could have real benefits for Cornwall, especially if the First Great Western train depot at Old Oak Common were relocated to Penzance. My right hon. Friend has received proposals from me, First Great Western and the local enterprise partnership. When will he let us know his decision?

[Mr McLoughlin]

My hon. Friend raises one of the many issues that need to be considered and resolved, but Old Oak Common is likely to become a major new transport focus for future generations, and will have an important role to play. Getting the maximum development in that area will also be very important.

[Mike Kane (Wythenshawe and Sale East) (Lab)]

I thank the Secretary of State for his statement and declare my interest, in that HS2 phase 2 will go directly under my house. Will he confirm the future journey times from Euston to Manchester airport in my constituency, now that phase 1 has been extended to Crewe?

[Mr McLoughlin]

I welcome the hon. Gentleman to the House. I am delighted to see him in his place, but I wish that his predecessor was still there—as I am sure we all do. He was a big supporter of HS2 and believed that it would bring tremendous benefits to his city of Manchester—I agree.

If we build to Crewe, as suggested by Sir David Higgins, it will result in immediate time improvements for Manchester, but I know that what people want to see is the connection to Manchester airport as well as to the city itself.

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

Speeding up delivery for this major infrastructure project for the north is to be welcomed, but—as my hon. Friends the Members for Leeds North West (Greg Mulholland) and for Colne Valley (Jason McCartney) suggested—deep concern is felt in west Yorkshire that economic advantage may come for the west side of the Pennines earlier than it will in Yorkshire if the extension goes beyond Birmingham before it goes to Manchester and then Leeds. I urge my right hon. Friend to engage more with the west Yorkshire councils to ensure that they have a strong, positive and simple message about the advantages of HS2, as their colleagues on the west side of the Pennines did, and which I am sure has influenced Sir David Higgins in his recommendation to extend on that side first, rather than ours.

[Mr McLoughlin]

I hear what my hon. Friend says. There has, rightly, been involvement: Julie Dore, the leader of Sheffield city council, was a member of the taskforce. The taskforce has stated that cities need to prepare, so that we can consider the long-term consequences of overall transport investment. They need to prepare for the benefits that HS2 will bring to their areas.

[Mr David Hanson (Delyn) (Lab)]

I welcome the fact that the Secretary of State used the two words “north Wales” in his statement. He will have my support for the speedy development at Crewe to link to north Wales. Does he accept that this is about not just speed, but capacity? What steps will he take to increase capacity to north Wales, and, by extension, to Ireland?

[Mr McLoughlin]

The right hon. Gentleman is absolutely right. Too many people talk about high-speed trains as though they are just about speed. They are not just about speed. When Lord Adonis launched the initial plans he talked a lot, as I have done since I have been Secretary of State for Transport, about the need for additional capacity. One of the biggest reasons for the new railway line is capacity on links between north and south, and the extra capacity we need at Euston. The right hon. Gentleman is absolutely right: we need to ensure that that capacity serves north Wales well.

[Guy Opperman (Hexham) (Con)]

The success and efficacy of HS2 in the north-east would be greatly improved if we reopened the Leamside line in future control periods. Will the Transport team look at this crucial improvement, and consider creating the HS2 skills academy in the north-east?

[Mr McLoughlin]

Surprisingly, my hon. Friend is the first Member today to mention locating the skills academy in his region. That is probably because other Members have been asking questions on the details and might have felt that they would be testing your patience, Mr Speaker, if they also made a bid for the academy. The skills academy is essential to getting the message across to young people that engineering and the railways offer good opportunities for them in the long term.

[Jenny Chapman (Darlington) (Lab)]

My constituency of Darlington is the indisputable birthplace of the railways—I do not think there are any Members for Stockton present—and my constituents currently enjoy a very good service to London. They are delighted that people in Leeds will soon be able to enjoy a good service too, but are concerned that that must not be at the expense of investment in the east coast main line. Will the Secretary of State commit to that not being the case?

[Mr McLoughlin]

Indeed I will. We are committed to providing brand new rolling stock for the east coast main line: one of the biggest orders placed for the railways has been signed off by the Government. I am delighted we have done that.

[Sheila Gilmore (Edinburgh East) (Lab)]

Sir David Higgins stresses the importance of existing lines and HS2 working together. Will the Secretary of State reconsider the current plans for trains from Scotland to Birmingham and London to bypass Manchester and Leeds? Is this an opportunity to reconsider the possibility of linking them up?

[Mr McLoughlin]

It is essential that all these suggestions are considered. HS2 will fundamentally change capacity on our railway lines. It will give us many more opportunities not just for passenger numbers, but for more freight. In the past 10 years, there has been a 60% increase in freight. The issue of capacity is what is holding back a further increase. The west coast main line is the busiest railway line in Europe. An increase in capacity will free up a lot of other services and opportunities.

[Mr Speaker]

I am pleased to be able to advise the House that 37 Back Benchers were able to contribute in 37 minutes of exclusively Back-Bench time. I suggest that the Secretary of State issue his manual on pithy replies to all members of the Cabinet, who would profit greatly from reading that text. The journey time was very satisfactory.

InterCity East Coast Franchise

Lord McLoughlin Excerpts

Monday 24th March 2014 Written Statements

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

On Friday, 21 March 2014, I published the invitation to tender (ITT) for the InterCity East Coast franchise. This marks the next step in the formal competition to find a new private sector partner to run passenger rail services on the east coast main line.

I have also published the InterCity East Coast stakeholder briefing document, which provides an update to the InterCity East Coast consultation summary report published in October 2013.

The ITT asks bidders to set out detailed proposals on what improvements for passengers they will deliver and how they will build on the multi-billion pound investment planned for the east coast main line and should they win the franchise. The invitation to tender includes:

the requirement to introduce the new world-class fleet of trains from the inter-city express programme;

continuation of services to all current destinations;

faster, more frequent services to/from King’s Cross by May 2020;

faster average journey times to Leeds and Edinburgh from May 2020;

the potential for improved services to destinations such as Lincoln;

an opportunity for bidders to serve five new routes including Huddersfield, Scarborough, Harrogate (via York), Middlesbrough and Sunderland (via Newcastle); and

a fund that will drive innovation for passengers and deliver long-term benefits for the franchise and wider rail industry.



It is anticipated that the successful bidder will be announced in November and that the new franchise will start in March 2015 and run for eight years and four weeks, with a possible one year extension callable at my sole discretion.

Services along the east coast main line are set to be transformed over the coming years through £240 million worth of investment which will improve reliability and boost capacity for passengers and freight. The route will also benefit from the Government’s £5.8 billion inter-city express programme, which is set to deliver a new fleet of state-of-the-art trains which will improve journey times and deliver a boost to the customer experience.

Oral Answers to Questions

Lord McLoughlin Excerpts

Thursday 20th March 2014 Commons Chamber

[Peter Aldous (Waveney) (Con)]

1. What steps he is taking to relieve congestion on roads.

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

The Government are committed to reducing traffic congestion and investing in our road infrastructure. Spending on strategic roads over this and the next Parliament will be £24 billion. A £500 million programme of pinch point schemes specifically targeted at tackling congestion is being progressed on both the strategic and local road network and a further £800 million is being invested in 25 local authority major road schemes. I am sure my hon. Friend will also join me in welcoming the additional £200 million that my right hon. Friend the Chancellor announced in yesterday’s Budget for pothole repairs.

[Peter Aldous]

I am grateful to the Secretary of State for that answer. The Prime Minister visited Lowestoft in January and saw for himself the fantastic opportunities in the offshore energy sector. Unfortunately, they could be choked off by congestion such as that experienced in the past fortnight. The problem could be solved by a new crossing at Lake Lothing. Suffolk county council, with the help of the local enterprise partnership and Waveney district council, has commissioned a study to come up with the right solution. Will the Secretary of State visit Lowestoft to see the problem for himself?

[Mr McLoughlin]

It has been a considerable time since I last visited Lowestoft, but following my hon. Friend’s invitation I shall certainly do so. Ministerial colleagues, including the Prime Minister, have visited. My hon. Friend’s points are well made, and they have been made to me by other colleagues.

[Mr Brian H. Donohoe (Central Ayrshire) (Lab)]

Congestion would be much improved if the potholes in the roads were removed. Although I welcome the money that was made available yesterday, how will it be distributed? How much of it is coming to Scotland?

[Mr McLoughlin]

Scotland will get its share according to the Barnett formula as part of the announcement made by the Chancellor yesterday. It will be up to the Scottish Government to decide how they share the money between the authorities in Scotland.

[Mr Simon Burns (Chelmsford) (Con)]

Does my right hon. Friend accept that the A12 through Essex and into Suffolk and Norfolk is a main road to the ports at Felixstowe and elsewhere? Given that a significant proportion of it from the M25 to Chelmsford is already three-lane, would it not be sensible to relieve congestion into the East Anglian hinterland by turning it into a motorway?

[Mr McLoughlin]

My right hon. Friend makes an interesting suggestion. No doubt he will pursue that argument with me and the authorities on a number of occasions to come.

[Mr Jim Cunningham (Coventry South) (Lab)]

What is the Secretary of State doing about the congestion at Tollbar End, which is affecting businesses, particularly those in the export market, and people getting to work? I contacted his Department last week but I still have not had an answer.

[Mr McLoughlin]

I am very sorry that the hon. Gentleman has not had an answer. I could compare the time delays in reply to correspondence under this and the previous Government, but instead I will try to get the hon. Gentleman an answer as quickly as possible. We are investing significant amounts in road infrastructure, more than that invested by the previous Government. That shows this Government’s overall commitment to infrastructure investment in the United Kingdom.

[Stephen Lloyd (Eastbourne) (LD)]

One of the worst sections of road for congestion is the A27 from Eastbourne to Lewes. It has been appalling for many decades and I know that it is being considered by the Department for Transport. Does the Secretary of State agree that the best way to solve the congestion would be a new dualled trunk road?

[Mr McLoughlin]

I know that the hon. Gentleman has met the Minister responsible for roads, my hon. Friend the Member for Scarborough and Whitby (Mr Goodwill), to make that point, which has been made to me, too, by other people in Eastbourne. However, there is some controversy, not least because the hon. Member for Lewes (Norman Baker) has a different view on the matter.

[Richard Burden (Birmingham, Northfield) (Lab)]

Traffic jams cost UK motorists 30 hours each last year and were often made worse by a £10 billion backlog in the road repair programme. As local road maintenance was cut by nearly a sixth between 2010 and 2013, is the Secretary of State surprised that the Chancellor’s announcement yesterday of a pothole challenge competition hardly has many motorists shouting “bingo” today?

[Mr McLoughlin]

I am sorry that the hon. Gentleman makes such a point, because I do not know whether he can get the shadow Chancellor to commit to investments such as those we are putting into this country’s road infrastructure. As I understand it, he is not allowed to make any commitments whatsoever. I am very glad not only that the Chancellor yesterday announced an extra £200 million to invest in our roads but that later today I will announce the allocation of the £140 million that I announced a few weeks ago to all local authorities. I hope that they will use the £140 million along with the £200 million announced yesterday to make significant improvements to our roads.

[Ian Swales (Redcar) (LD)]

2. What assessment he has made of the adequacy of public transport links to Durham Tees Valley airport.

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[Mr Nicholas Brown (Newcastle upon Tyne East) (Lab)]

3. When he next plans to meet representatives of the Passenger Transport Executive Group.

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

There are no arrangements in place at present. However, while it has been some time since my last meeting with the group, I have met representatives individually in the intervening period. I would therefore welcome the opportunity to meet PTEG or indeed with representatives of any of the local government organisations from Newcastle.

[Mr Brown]

There is quite a lot to discuss—for example, quality contracts—but of immediate concern is the impact of the new combined authorities on the existing joint boards. Can the Secretary of State say anything today that would reassure the employees of the existing joint boards, who are uncertain about their future?

[Mr McLoughlin]

The proposals for the combined authorities would see the passenger transport executives continuing to provide an executive function on transport issues across the board. The exception to that is west Yorkshire, where the local authorities have decided to dissolve their PTEs in addition to the integrated transport authority. The powers and duties of the PTE will be transferred to the new combined authority. I am more than happy to meet the right hon. Gentleman to discuss his worries.

[Charlie Elphicke (Dover) (Con)]

The next time my right hon. Friend meets PTEG, will he invite representations on the progress of the Dover Priory railway station project, which is being held up by Her Majesty’s Revenue and Customs?

[Mr McLoughlin]

If my hon. Friend had not asked that question, I do not think that I would have done, but as he has, I will certainly look into it and write to him.

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

When the Secretary of State next meets representatives from PTEG, they will no doubt tell him that bus fares are rising year on year and that routes are being cut. Should not operators such as Stagecoach, which make a huge profit off the back of the taxpayer subsidy, start behaving more responsibly, rather than threatening legal action at the prospect of a quality contract in Tyne and Wear?

[Mr McLoughlin]

We want to see good co-operation between the passenger transport executives, the combined local authorities and the bus operators that provide the services in their area. They need to work together to give the best services to local people. Bus services are incredibly important to people and are vital in enabling them to go about their daily business and to get to work and to their leisure activities.

[Dr Julian Huppert (Cambridge) (LD)]

4. What progress he has made on implementing recommendations of the “Get Britain Cycling” report of the all-party parliamentary cycling group. [R]

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[Stuart Andrew (Pudsey) (Con)]

5. What assessment he has made of Network Rail’s planned control period 5 investment programme.

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

Network Rail is about to embark on CP5, which runs from 2014 to 2019, during which it will spend £38.5 billion on the railways—a significant increase on the £32 billion spent in the previous five-year period.

[Stuart Andrew]

May I begin by thanking my right hon. Friend for ruling out the introduction of car parking charges at stations in west Yorkshire and by congratulating him on the significant amount of electrification that is taking place on our railways, compared with the pitiful amount under the previous Government? Does he agree that if he wanted it to be really impressive, to put the icing on the cake, electrifying the Caldervale line through New Pudsey would make it even better?

[Mr McLoughlin]

I am very glad that car parking charges have been ruled out, despite some people’s claims that they would be introduced. It was partly my hon. Friend’s vigorous campaign that led to that decision. He is absolutely right about the huge amount of electrification taking place on our railways—over 800 miles, compared with the 9 miles electrified during Labour’s 13 years in government.

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

The planned investment is very welcome, but what will the Secretary of State do to ensure that the correct rolling stock is available when electrification is completed so that we do not have a repeat of the current fiasco with TransPennine Express?

[Mr McLoughlin]

I think that it is absolutely right that we get rolling stock. I am sure that the hon. Lady, and indeed the whole House, will join me in welcoming the announcement made by Hitachi overnight that it will base its world headquarters for rail development in this country. That is incredibly good news and I am sure it will be welcomed by all. The point she makes about rolling stock overall is important. It shows the kind of development that is needed in railway rolling stock orders.

[Andrew Percy (Brigg and Goole) (Con)]

My right hon. Friend will be aware of the campaign in the Humber to bring electrification through to Hull. Does he have an update on that important project for our area?

[Mr McLoughlin]

I have met hon. Friends and other hon. Members from the Hull area to discuss the representations they have made. I am very pleased to be able to announce today that I can make available the £2.5 million to take this project up to GRIP 3—governance for railway investment projects. That notification will be going to Network Rail and I will write to colleagues today to tell them that I am making the money available.

[Margaret Beckett (Derby South) (Lab)]

Although we all welcome investment in Network Rail, does the Secretary of State think that it is acceptable that the procurement programme for traffic management is going forward before a full and independent review can establish whether £1 billion of savings is possible?

[Mr McLoughlin]

The right hon. Lady has written to me on this matter, and I have not only corresponded with the company concerned and other interested Members, including my hon. Friend the Member for Mid Derbyshire (Pauline Latham), but visited the company. Anna Walker, who chairs the Office of Rail Regulation, has written me a letter showing how it will investigate the points that have been made by DeltaRail.

[Derek Twigg (Halton) (Lab)]

What proportion of the money that the Government are spending and plan to spend on the railways is being spent on schemes that were initiated or started under the previous Labour Government?

[Mr McLoughlin]

The schemes that have been put forward in CP5 have been approved by this Government.

[Mary Creagh (Wakefield) (Lab)]

We welcome electrification of the railways, but not if there are no trains to run on the tracks. One of the achievements of this control period will be the electrification of the Liverpool to Manchester line, which should mean better services, but the Department’s incompetence on franchising has put that progress at risk, as some TransPennine Express trains will transfer to Chiltern Railways next year. What is the Secretary of State going to do about it?

[Mr McLoughlin]

I realise that the hon. Lady has to try to find some things to attack and criticise us on, but I would have thought she welcomed a very significant increase in the investment into the railways. There were 9 miles of electrification during the 13 years of the previous Government; there will be 880 miles of electrification under this Government. Of course it is absolutely right to get the rolling stock right. Part of the problem with rolling stock has been the dismal performance of the previous Government in ordering it.

[Mary Creagh]

If it was so dismal, I do not understand why Hitachi has moved here because of the intercity express programme, but we will move on from that, because it was a Labour decision that caused that announcement today. [Interruption.] It was an order made under a Labour Government, not a Conservative Government.

The point of railway investment is to make life better for passengers, not worse. The Secretary of State talks about the electrification of the midland main line in control period 5, but again there are no answers on which trains will run on those tracks. Handing down older trains from the east coast line will lead to slower journeys on midland line trains than with the current diesel trains. What reassurance can he give the House that his botching of the TransPennine Express and Northern Rail franchises will not happen again in his own backyard?

[Mr McLoughlin]

The simple fact is that rail usage in this country has been a tremendous success that should be celebrated across the House. There were 750 million passenger journeys when the railways were privatised; there are 1.5 billion rail journeys now. I am very pleased about that. We are investing huge amounts in the railways. Of course there will be some problems with rolling stock, but it is this Government who have confirmed the intercity express programme orders for the east coast line and the great western line, and this Government who are signing off the contracts.

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

6. What estimate his Department has made of the number of people who will be killed or injured in road traffic collisions in the UK between 2014 and 2030; and if he will estimate the economic value of preventing such casualties.

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[Mel Stride (Central Devon) (Con)]

10. What steps he plans to take to improve road and rail infrastructure into Devon and Cornwall.

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

My Department is reviewing the resilience of the transport network to extreme weather events. This will include the south-west. The current priority is restoring rail services through Dawlish. We have announced £31 million for 10 resilience projects and commissioned Network Rail to identify a resilient rail route west of Exeter. There is £183.5 million available nationally to help repair local roads and we are undertaking a feasibility study to improve options for the A303.

[Mel Stride]

My right hon. Friend will be aware of the proposal for a new railway line from Exeter to Plymouth via Okehampton and Tavistock. May I urge him to take it very seriously and perhaps to visit Okehampton with me to meet local business people and others in order to have the case for the economic advantages of that route presented to him?

[Mr McLoughlin]

I have asked Network Rail to do a substantive piece of work, which I expect to get this July and which will address some of the options. I very much hope to visit Dawlish shortly and if a visit to my hon. Friend’s constituency can be arranged at the same time, I will try to do so.

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

I will not go down the route of disagreeing with the hon. Member for Central Devon (Mel Stride) about the Okehampton option. The Secretary of State knows of my support and admiration for those involved in keeping the south-west open for business. There are, however, some issues: there was nothing in the Budget for road or rail transport in the south-west and, to be frank, we have a franchising dog’s breakfast which has cost the taxpayer £55 million. People and businesses in the south-west deserve better. Will the Secretary of State press his colleague the Chancellor to ensure that commitments for finance for investment will be made either before or during the next autumn statement?

[Mr McLoughlin]

I hear what the hon. Lady says. I was able to announce some improvements that were welcomed with regard to an early service from Plymouth to London. I hope that goes some way to answering the question. I appreciate the points made by the hon. Lady and the way in which this particular incident had a dramatic effect on the south-west. We need to look at resilience down there. We also need to look at what we can do with regard to both rail and road, and we have already committed ourselves to an intensive investigation of the A303.

[Andrew George (St Ives) (LD)]

Further to that, it is important that we get a resolution on the temporary franchise as quickly as possible. In congratulating my right hon. Friend on getting a solution in Dawlish, may I ask which Government Departments contributed the finance to ensure that that very expensive project was brought to a conclusion?

[Mr McLoughlin]

May I use this opportunity to place on record my thanks to Network Rail—I am sure that I speak on behalf of colleagues in the south-west as well—for responding magnificently to the problems that were faced in Dawlish? Anybody who has read about the continuing work to restore that link will be only impressed with the work that has been put in by Network Rail, which is often criticised for actions on the railways. I hear what the hon. Gentleman says about finding the funds. The Government will find them and I am not too worried about which Departments they will come from.

[Mike Thornton (Eastleigh) (LD)]

11. What steps his Department is taking to support the take-up of low- emission vehicles.

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[Mr William Bain (Glasgow North East) (Lab)]

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

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

Following the wettest winter on record, I recently announced an extra £140 million for urgent repairs to local roads, bringing the total fund to more than £170 million. Today, I am announcing the individual allocations of that funding among local authorities. Some £47 million will be allocated to councils in the south-west that were particularly badly affected. I expect councils to spend the money wisely and quickly, and councils that do so will be particularly well placed to bid for additional funds for road repairs in the next financial year from the £200 million pot announced by my right hon. Friend the Chancellor in yesterday’s excellent Budget.

[Mr Bain]

Thirteen months ago, the Public Accounts Committee told the Secretary of State that serious fundamental errors in the franchising process for the west coast main line had led to more than £55 million of public money being flushed down the drain. What action has he taken to make sure that that Tory franchising fiasco never happens again?

[Mr McLoughlin]

I announced a number of follow-ups that I took as a result of that particular franchising problem—I was incredibly open with the House about it—through both the Laidlaw inquiry and the Brown inquiry. I do not recognise the £55 million figure that the hon. Gentleman talks about.

[Mr Adrian Sanders (Torbay) (LD)]

T3. Will the Minister commit to looking at the electrification of the Penzance to Paddington route, a scheme which, at a fraction of the cost of HS2, would benefit everyone in the south-west, unlike some of the other promoted schemes that would benefit only some people at the expense of others?

[Lilian Greenwood (Nottingham South) (Lab)]

First Great Western was originally due to pay more than £800 million in premium payments over the years 2013 to 2016, but the Government have now handed over the franchise for just £17 million a year. If there is now a further five-year extension on the line, with no competition, at the same time as Ministers are selling off the successful East Coast operator, will not taxpayers once again pay the price for this Government’s incompetence and ideology?

[Mr McLoughlin]

The hon. Lady should be careful about the points that she makes about that matter. She talks about First Great Western’s right to cancel the contract, but that right was given to it by the last Government when they negotiated the franchise. All it was doing was exercising an option that the last Government gave it. If she is saying that the last Government made a mistake in dealing with that matter, she might be right. I am determined to ensure that the people who are served by that franchise on that route get better services. That is why we will insist that first-class carriages are converted to standard class to provide more capacity on the line, and why we are improving the sleeper services down to Cornwall—something that has been welcomed widely.

[Greg Mulholland (Leeds North West) (LD)]

T5. I am a big supporter of high-speed rail, but it has to link to the north and then to Scotland to bring benefits. May I ask the Secretary of State to do what the previous Government failed to do, which is to look at the viable alternative to HS2, “High Speed UK”, which would cause less environmental damage, would be £14 billion cheaper and would connect more cities than just Birmingham and London?

[Mr McLoughlin]

What we have to do with high-speed rail is vastly to increase capacity, which HS2 does. That is vital. I think that HS2 is the right scheme to go ahead with. Of course it has to link in. In the excellent report that was published this week, David Higgins showed how we will do that and how we will get a train service that is adequate for this country not just for 10 or 20 years, but for the next 150 years.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

T2. This morning, like many Members, I caught a London bus on my way to work. Quality contracts are one reason why London has bucked the national trend of rising fares and falling passenger numbers. Will the Secretary of State join me, Tyne and Wear public transport users group and his friend, the Mayor of London, in supporting quality contracts for quality bus services?

[Mr Simon Burns (Chelmsford) (Con)]

Does my right hon. Friend the Secretary of State agree that it is somewhat surprising that more has not been said in this Question Time to congratulate Hitachi on its decision to bring its rail business headquarters to England? Does he agree that, ever since he gave it the contract for the intercity express programme rolling stock, it has gone from strength to strength? The irony is that, in some years’ time, we could be a net exporter of rolling stock, rather than having to import it.

[Mr McLoughlin]

I have mentioned that once or twice, and I am grateful to my right hon. Friend for mentioning it again. It is fantastic that Hitachi has announced that it will locate its headquarters in London and that it is building its manufacturing plant in Newton Aycliffe. That follows the contracts to build the new IEP trains that were awarded and signed by this Government.

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

T7. The Government say that there is no time in the next 14 months to bring forward a dedicated taxi Bill. Instead, they are pushing through proposals to lower standards and deregulate the taxi market outside London in the Deregulation Bill. Given that there is so little for Parliament to do most weeks, will Ministers explain their actions and say why they cannot take a taxi Bill through the House in the next 12 months?

[Mr McLoughlin]

I am not in a position to announce what will be in the future legislative programme for this House. It is no secret, given that it has been announced by my right hon. Friend the Leader of the House, that the state opening of Parliament will be in June. There is certainly no time left in this Session.

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

The Institute of Directors surveyed more than 13,000 directors for its spring report to gain their views on HS2. More than half of them thought that it was poor value for money and more than 60% thought that the budget that is earmarked for the project would provide a better return if it was used to improve the existing road and rail networks. Why do the Government not listen to the wider business community, rather than to the lobbying of businesses with vested interests, such as the High Speed Rail Industry Leaders Group, most of whom turned out to be on the Government payroll?

[Mr McLoughlin]

I listen to the Institute of Directors, and I also listen to the CBI, which supports HS2, and to the British Chambers of Commerce, which has written to the Prime Minister about it. I also listen to the local authority leaders, who are united in their view that HS2 is the right thing to do to close the north-south divide in this country and provide the north with the type of rail services that it deserves. I would also point out that we have had significant investment in London transport, and it is about time that the rest of the country got some of the investment as well.

[Phil Wilson (Sedgefield) (Lab)]

May I join the Secretary of State in welcoming Hitachi’s announcement that it is moving its global rail operation to the UK? That will create a lot of jobs in my constituency. Will he acknowledge two things, however? The first is that Hitachi had identified Newton Aycliffe as its manufacturing base before the last election because of Labour’s intercity express programme, and the second is that it has moved here also because we are in Europe, and it would be a disaster to leave the European Union.

[Mr McLoughlin]

One reason why this country has been so successful in getting inward investment is the long-term market changes that we have made in the United Kingdom, which were started by Baroness Thatcher. I well remember when Toyota came to this country, which was the largest single investment ever made here at more than £800 million. I also remember when Nissan came here. I very much welcome Hitachi, but it follows a number of other Japanese companies in coming to this country, investing in it, providing good, long-term employment and doing very well for the United Kingdom.

[Sir Roger Gale (North Thanet) (Con)]

Yesterday, the owner of Manston airport in Kent announced the proposed closure of that important airfield. Given that Manston has the fourth longest runway in the country and is a major diversion field and a search and rescue base, will the Secretary of State review the matter in the national interest to see how Manston may be kept open?

[Jim Shannon (Strangford) (DUP)]

Will the Secretary of State make bus driver disability awareness training compulsory in his Department’s review of the EU bus and coach regulation this month?

[Mr McLoughlin]

That has been mentioned to me, and I will certainly want to look into it. I will write to the hon. Gentleman in more detail.

[Mr Tobias Ellwood (Bournemouth East) (Con)]

Pokesdown railway station, in my constituency, is in dire need of upgrade. The lifts have not worked for a number of decades. In response to a parliamentary question, the Minister said that we should blame South West Trains. I wrote to South West Trains, and it said that we should blame the Government, because that is not part of the franchise agreement. All that the people of Bournemouth want is for the lifts to be working. May I invite the Minister to come to Bournemouth to take a look at the situation?

Higgins Review

Lord McLoughlin Excerpts

Monday 17th March 2014 Written Statements

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

Sir David Higgins has today published proposals to build HS2 better and bring the benefits to the north sooner. The Government strongly support this ambition and welcome his report. HS2 is vital for the economic health of this country and our international competitiveness.

It was in this context that I asked Sir David Higgins, when he became chair of HS2 Ltd, to undertake a review on maximising the benefits of HS2 and managing costs. Given his experience on delivering the Olympics, there was no one better equipped for the role.

Sir David has carried out a robust and rigorous review of the cost estimates for constructing phase 1 and confirmed they are right. He proposes to use any savings to protect the contingency at this early stage in the parliamentary process and the project as a whole. The Government support that.

Sir David’s report also proposes to deliver benefits, particularly benefits to the midlands and the north, more quickly. The report sets out a clear proposal to accelerate construction so that the Crewe section of phase 2 would be completed by 2027, not 2033, and to build a new integrated hub station at Crewe. Therefore, I am commissioning HS2 Ltd and Network Rail to undertake work to allow both these proposals to be considered in detail as part of my consideration of the public consultation responses to phase 2.

Sir David also makes recommendations about connectivity in the midlands and the north. He says the key to improving this is to integrate decision making on HS2 with Network Rail’s decision making for improvements to the existing network during control period six (2019-2024). I am, therefore, commissioning HS2 Ltd and Network Rail to make recommendations before our response to the phase 2 consultation.

Our priority must be to get the benefits to the midlands and the north as soon as possible. Our proposals must stand the test of time and we must put our money where it will do the most good. Sir David is clear that he does not think the existing proposals for the HS2/HS1 link meet those tests. His report concludes that the link proposed in the High Speed Rail (London-West Midlands) Bill has not secured a consensus. The link requires too many compromises in terms of impacts on freight, passengers and the community in Camden. I, therefore, intend to take the necessary steps to remove the link from the Bill and withdraw the safeguarding of this section of the route as soon as possible. I will also commission a study into ways to improve connections to the continent that could be implemented once the initial stages of HS2 are complete.

I also agree with the report that more can be made of Euston station. It is a significant opportunity to maximise the economic potential of the line and regenerate a site that has been neglected. It is also a significant opportunity to generate private sector investment that can reduce the overall burden on the taxpayer. I will, therefore, ask HS2 Ltd and Network Rail to develop more comprehensive proposals for the redevelopment of Euston, working with the rail industry and the local community. This work should include proposals for the Euston Arch which should never have been knocked down and which I would like to see rebuilt.

HS2 is a project that will be built over many Parliaments and will serve people for many generations. We must design it carefully and build it correctly. The Government are keen to rise to the challenge and we hope that hon. Members on all sides of the House will do the same.

Copies of Sir David’s report have been placed in the Libraries of both Houses.

Mersey Gateway Bridge

Lord McLoughlin Excerpts

Monday 10th March 2014 Written Statements

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

The Chief Secretary to the Treasury on 4 December re-confirmed as part of the national infrastructure plan that funding would be made available to the Mersey gateway bridge scheme subject to successful completion of procurement and Government approval.

As part of that approval process, the Government have agreed to provide a commitment to Halton borough council (“Halton”), the promoters of the scheme, to stand behind any shortfall to the level of toll revenue required to meet Halton’s financial obligations and I am today laying in the House a departmental minute giving particulars of the contingent liability created. I will also lay a copy of the minute in the Library of the House of Commons.

The Mersey gateway bridge project involves the construction of a new 1 km long cable-stayed, dual three-lane bridge over the River Mersey between Widnes and Runcorn plus associated changes to approach roads. Congestion associated with the Silver Jubilee bridge is seen as a constraint to economic regeneration and growth both locally, within the borough, and across the wider Liverpool city region and the north-west.

The bridge’s construction and maintenance has been procured under a design, build, finance and operate (DBFO) contract which is on a fixed-price basis and under which payments do not start to flow until it opens. The initial development costs, land purchase, decontamination and other project costs will be funded through a grant from the Department for Transport (the Department), Halton BC contributions and other third-party contributions.

Following operations start, the majority of the funding will be provided through users in the form of tolling of both the new bridge and existing Silver Jubilee bridge over the 26.5-year DBFO contract. In addition the Department is providing a graduated, decreasing resource availability support grant funding over 12 years starting in 2017-18 (following the opening of the bridge) to 2028-29.

As Halton is a small authority with limited resources, to ensure that the scheme can proceed the Department intends to commit that in addition to the availability support grant it will stand behind any shortfall to the level of toll revenue required to meet Halton’s financial obligations. Full details of the Department’s proposed commitment can be found in the departmental minute.

The likelihood and scale of the additional availability support grant required would depend on the robustness of the base case toll volumes and revenues and also the scale of the shortfall of the actual revenues against the project costs. In an (unrealistic) worst case scenario where the bridge opens with zero toll revenues, the Department would pay all costs. In addition to the committed departmental availability support grant, under this scenario the additional availability support grant which represents the contingent liability would be up to circa £16.6 million in the first year (following utilisation of the £19.0 million liquidity reserve), c. £37.6 million in 2018-19 and thereafter rising by an average of c. £2 million per annum. The total contingent liability on this basis over the 26.5 years would be c. £1,698 million (following utilising of the £19.0 million liquidity fund).

If the liability is called, provision for any payment will be sought through the normal supply procedure.

Subject to successful completion of all remaining approvals and completion of financial close, construction of the scheme is scheduled to start in April 2014 with the scheme opening in 2017.

Rail Review Update

Lord McLoughlin Excerpts

Wednesday 26th February 2014 Written Statements

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

As recommended by Richard Brown in his review into franchising and as part of June 2013’s national infrastructure plan “Investing in Britain’s Future”, my Department undertook to review Government rail functions in order to identify what actions were required to deliver those functions in the most effective and efficient way. The review has now submitted its recommendations to me. I have agreed its recommendations and implementation will begin shortly.

The review recognised that much has already been achieved since the Department’s rail functions were brought together into a single rail group in January 2013. A clear, professional franchise programme is underway, implementing Richard Brown’s review of franchising, along with the Government’s ambitious rail investment programme. Building on this progress, the review recommends further developing the Department’s rail functions as a new Rail Executive.

Creation of the Rail Executive will support the drive to strengthen our focus on passengers; build an enhanced culture of commercial expertise and innovation; and ensure greater co-ordination of improvements to track and trains. A single team will manage the interdependencies between rolling stock, track, stations, freight and passenger services; and between existing services and HS2. It will also develop an effective framework agreement for Network Rail, for September 2014, when it will be classified as public sector. A new approach to recruitment, reward and career development for commercial rail skills will allow the Rail Executive to increase capability at all levels and bolster commercial experience in the management team. This will reduce the Department’s dependency upon consultants and increase its ability to negotiate the best deal for passengers and the taxpayer.

The review recommended that there should be a clear focus on rail passenger services within the Rail Executive. This will be provided by a new Office of Rail Passenger Services, forming part of the Rail Executive, with responsibilities including delivery of the franchise programme and the management of existing franchises. It will be led by an externally recruited managing director and supported by non-executive board members.

The review has also recommended we consider a longer-term option of a new, more arm’s-length body with responsibility for rail delivery functions. The creation of the Rail Executive provides a strong foundation for such future evolution and the Government will consider moving to a more arm’s-length body in 2016.

Thameslink, Southern and Great Northern Franchise

Lord McLoughlin Excerpts

Monday 24th February 2014 Written Statements

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

On 18 February 2014 my Department announced the successful conclusion of negotiations for the direct award of a new, six-period franchise agreement to First Capital Connect that will see that company continue to provide services from the end of their current franchise on 31 March 2014¹ to the start of the new combined Thameslink, Southern and Great Northern franchise later this year.

Through this contract I have guaranteed services for passengers and ensured that the transition to the new franchise will be as smooth as possible, maximising the value for the taxpayer. This short contract is a key step in ensuring the delivery of the significant £6 billion Thameslink programme, which will transform the lives of rail passengers in the south-east through the delivery of new trains and more capacity, allowing 24 trains per hour through some of the most congested routes in the country.

¹The current franchise expires at 01:59 on 1 April 2014, at the end of the previous day’s services.

Flooding: Transport Disruption

Lord McLoughlin Excerpts

Thursday 13th February 2014 Commons Chamber

[Mary Creagh (Wakefield) (Lab)]

(Urgent Question): To ask the Secretary of State if he will update the House on the transport disruption caused by the floods.

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

In the past two months, Britain has been hit by truly exceptional weather. This has been the wettest January in more than 200 years, and the severe weather is set to continue. From extra pumps and sandbags to military support and emergency funds, the Government are committed to providing all the practical support and assistance that is needed.

Overnight a severe storm, with winds recorded at more than 100 miles per hour, added further to disruption on the transport network, with the railway network particularly badly affected and some motorways closed owing to wind speeds. Network Rail and the Highways Agency have been working through the night to address the damage caused, clearing scores of trees from blocked lines, removing debris from carriageways and tracks, and repairing overhead wires. Let me take this opportunity to thank all those people for their dedication and hard work in the most trying circumstances, and express my sympathy with all those affected by bad weather.

As a result of the repair work overnight, I can provide the following updates for those parts of the transport network affected by the storm. On the rail network, the west coast main line is open, apart from the spur from Runcorn to Liverpool, which is expected to be back in service later this morning. Most of the east coast line is open. Continued work on overhead line damage north of York is placing limits on the service, and trains are expected to run at 80 miles an hour between Newcastle and the Scottish borders until midday. The Welsh routes of Fishguard and Aberystwyth are currently closed as engineers work to clear scores of downed trees.

On the roads, with a few isolated exceptions, we have kept motorways and major A roads running through this unprecedented level of severe weather. Although the hard work of engineers has mitigated the worst effects of the storm, there is no doubt that the transport network has taken a battering over the past week. In Dawlish work continues apace to mend the route between London and the south-west. During my visit on Friday I met south-west MPs and council and business leaders to assess the impact of the severe weather on the region’s transport network and economy. That followed a briefing with local south-west MPs in the House last Wednesday. The collapsed wall has been shored up with material salvaged from the damaged section, and a temporary breakwater made of shipping containers and filled with rubble has been erected off the coast. Removal of the damaged platform continues, and work is estimated to be completed by 18 March.

At Maidenhead the water table is currently 20 metres higher than it would normally be at this time of the year. That has damaged the signalling and had a serious effect on the ability of Network Rail to run trains, with roughly one fifth of services currently running between Reading and Paddington. Network Rail is working urgently to assess the time scale and to repair the signalling. The M2 in Kent is now partially reopened in both directions, with repairs ongoing to the hole in the central reservation.

While we deal with the immediate fall-out from the weather conditions, my Department has announced measures that I believe will make a real impact on the ground. Those include £61 million funding for projects to help repair damaged roads and build greater resilience into our railway network. Yesterday the Government announced funding worth £31 million to pay for rail resilience projects, which includes money to continue the vital work at Cowley bridge in Exeter to improve resilience against flooding. In addition, a further £30 million has been found for road maintenance, including pothole repairs, for local authorities in England affected by the severe weather. That is on top of the £3.5 million from the £7 million flood recovery package announced by the Government on 17 January.

Because we recognise the importance of tourism to the south-west during half-term week, we have worked with the airline Flybe to enable it to double its daily flights between Newquay and London Gatwick. It will increase the number of flights from three to six per weekday, providing more than 4,500 additional seats each week. Flybe has also agreed to keep prices at the same level as before the weather disruption, ensuring that hard-working families are not penalised by the impact of the weather on their travel plans. On Monday this week the Prime Minister also announced a Government subsidy to allow Newquay airport to waive the £5 airport development fee usually charged to those departing from the airport. Together, that package is helping to keep the south-west open for business during these difficult times.

In addition, First Great Western, the rail operator, has put in place a special ticketing arrangement so that rail passengers affected by the flood disruption do not miss out on the cheaper advance fares while revised timetables are in place. That means that passengers will receive a 25% discount on walk-up fares for journeys that cross the Dawlish gap. First Great Western has also ordered hundreds of extra buses to provide alternative transport while the track is repaired.

Although the conditions are unprecedented, particularly because of their severity and sustained nature, it is important that we ensure that our network is resilient in the long term to such threats. The Department for Transport works very closely on resilience with other Government Departments, local authorities, other transport operators and the wider sector. Resilience to extreme weather and climate change also form part of our capital maintenance programme. The Government have asked the industry to build climate resilience into its plans for railway investment for the period between 2014 and 2019. The industry has responded by introducing more specialised equipment and trains that treat rails, and that clear ice and snow or compacted leaves.

We have embarked on one of the biggest programmes of rail modernisation ever. Over the next five years, more than £38 billion will be spent to improve and maintain our railways. Network Rail is developing strategies for securing the long-term resilience of the railways and has asked the Office of the Rail Regulator for nearly £500 million to invest in resilience projects.

On the roads, the Highways Agency has assessed the potential risks that climate change poses to the ongoing operation and improvements to the strategic road network. It has taken action to mitigate and is spending a huge amount a year on maintenance and renewal. Funding for local roads maintenance has increased by £650 million in this Parliament. That figure will increase by a further £500 million to £4.9 billion between 2015 and 2020.

As the Prime Minister said yesterday, we are in for a long haul. I will continue to keep the House updated, but I should at this stage pay tribute, as every Member of the House would like to do, to all those tens of thousands of people who are at the moment doing their upmost to provide services, sometimes in very dangerous conditions. They are trying to do their very best for the travelling public, and we owe them a great debt of gratitude.

[Mary Creagh]

I thank the Secretary of State for his reply. Our sympathy goes out to the families and friends of the three people who have tragically lost their lives in the flooding and storms. Our thoughts are with everyone who has been affected by the flooding.

I echo the Secretary of State’s tribute to the emergency and armed services, council workers, Network Rail, the Highways Agency, the Environment Agency and power company staff who have worked round the clock in very difficult conditions to keep people safe and to restore services.

The Secretary of State mentioned the severe weather in the past week that has caused huge disruption. Rail services on Southern trains, Southeastern trains, South West Trains, First Great Western and Virgin have all been seriously affected, and there is major disruption on the motorway, with the closure of the M2 and regional disruption overnight as trees were brought down by high winds.

The Secretary of State said that First Great Western has suspended its advance ticket scheme on the Dawlish route. Passengers must now pay for expensive walk-on tickets rather than take advantage of lower advance fares. Although the 25% reduction in those walk-on fares is welcome, some passengers must still pay more than £100 to travel from Paddington to Cornwall on rail replacement buses. Does he believe that is fair?

The Tunbridge Wells to Hastings line is shut as a result of landslips and will take several weeks to repair. One route to Exeter is closed with three quarters of a mile of track under water. The Windsor branch line is blocked at Datchet. In Wales, the Cambrian coast rail line has been damaged between Barmouth and Pwllheli—it was damaged in January but will not reopen until mid-May. Network Rail estimates that the cost of repairing that damage will be up to £30 million. What talks has the Secretary of State held with train companies to support passengers who have experienced substantial financial loss as a result of the travel disruption? The damage at Dawlish and Pwllheli alone will cost Network Rail £40 million to repair and Network Rail’s initial estimate of the repair and business interruption costs from flooding over the past two months is now £118 million. How much money has he asked the Treasury for to carry out those vital repairs?

In 2012, an 11-day closure of the Great Western railway line to Exeter caused by flooding was estimated by Cornwall council to have cost the regional economy £140 million. In January last year, the Prime Minister said that

“we will do everything we can to ensure that these important services are maintained, even when they are challenged by floods”.—[Official Report, 16 January 2013; Vol. 556, c. 870.]

Yesterday, the Prime Minister announced that £61 million was being made available by the Department for Transport to finance the repair and rebuilding of transport infrastructure, yet it transpires that £31 million of that money was what he promised to the south-west authorities and MPs last year for resilience repairs around Exeter. Network Rail has spent £5 million on small repair schemes, but the bulk of that £26 million from the Government, promised by the Prime Minister last January, has never been received. Why not? Why did that money failed to materialise in the autumn statement? Did he just forget?

Of the Prime Minister’s £61 million announcement yesterday, it transpires that the £30 million for council road repairs was actually announced on Monday by the Secretary of State for Communities and Local Government. Will the Secretary of State confirm that the Prime Minister’s announcement yesterday was a rehash of old announcements and included not one penny of new money for the urgent rail repairs that are needed across the network? Will any additional money be made available to Network Rail for repairs to damaged transport infrastructure? Will any additional money be provided to improve transport infrastructure flood resilience?

The Government need to speak with one voice and their response needs to be speedier than it has been in the recent past. The Select Committee on Energy and Climate Change has warned that flooding is the greatest risk our country faces from climate change. The Prime Minister has said that “money is no object” and the Secretary of State has said that there is no blank cheque. Who is right? Communities and commuters face long weeks, potentially months, of transport disruption. They need leadership and clarity on what help they can expect and when. When will they get it?

[Mr McLoughlin]

In my answer, I tried to be open with the House on all the problems being faced by passengers and our constituents across the country. I do not think it helps when the Opposition try to suggest that money is not available. When I was here last Thursday, I was the one speaking up for all the passengers who were being inconvenienced by strikes that the Opposition were deliberately incredibly quiet about. I need no lectures on speaking up for passengers and the people who use our public services.

As far as money and investment is concerned, the simple fact is this: as the Prime Minister has made absolutely clear, there is no limit to the amount of money that the Government are providing for immediate flood relief. We will do everything we can to help those people who are very badly affected and will be affected for months to come. That is a commitment from the whole of the Government: the Government certainly speak with one voice on this subject.

I also point out very clearly that, between 2014 and 2019 in the next round of investment in the railways cleared by this Government, we will see record sums invested in our railways. Indeed, as part of the investment programme, a tunnel that is very important for the south-west, has just been relined. A lot of the money we are talking about—the £850 million being spent on Reading station—is all about improving resilience in the long term. A lot of the money being spent by Network Rail over the next five years—[Interruption.] The hon. Member for Blackpool South (Mr Marsden), like a parrot, keeps saying, “It’s not new money.” The simple point is that it is new money. It is the £38 billion that we are going to invest in Network Rail over the next five years. It is important, too, and represents a record level of investment—a level of investment never reached by the previous Government when there was plenty of money available. When the buckets were overflowing, they did not invest in our infrastructure; we are investing in it, rebuilding the British railways, and the roads as well.

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

I would like to associate myself with the remarks of both Front Benchers about the victims and those people working around the clock to help people in trouble. I also congratulate Ministers on getting a grip of this situation and offering support wherever they can.

Following the flooding in 2008, the UK received about £127 million from the EU solidarity fund, which, in exceptional circumstances, can be used for regional disasters to help with clear-up work and infrastructure restoration. Our Welsh Conservative MEP, Dr Kay Swinburne, has been calling on the Government to co-ordinate with the Welsh Government to unlock funds from the solidarity fund in particular. Will my right hon. Friend work with Dr Swinburne, the Welsh Government and other parts of the country to ensure we unlock the maximum amount of money from this European fund during these terrible times?

[Mr McLoughlin]

I can reassure my right hon. Friend that this matter was discussed last night in the Cobra meeting, and my right hon. Friend the Minister for the Cabinet Office and Paymaster General is looking at all the avenues for collecting any money that might be available.

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

What work is the Secretary of State doing with other Departments to make an economic assessment of the loss of the rail network, both in the south-west and across the country? It is important that that work is co-ordinated.

[Mr McLoughlin]

The hon. Lady, along with council leaders and leaders of the local enterprise partnership, met me last week when I was down in Plymouth. I told them, following my statement in the House last Thursday, that I would want to look at the long-term resilience of the south-west—that is very important—but when we get a storm of the nature of last night’s, it is not just the south-west we need to consider, so we need to investigate what she says further and more wholly. She has made her case for the south-west, and I will certainly work with her and other Members who attended the briefing—unfortunately I could not attend because I was preparing for the urgent question—held by the Under-Secretary of State for Transport, my hon. Friend the Member for Wimbledon (Stephen Hammond), just before this sitting.

[Mr David Heath (Somerton and Frome) (LD)]

The Great Western railway is effectively out of action and many of our roads are under water. This clearly demonstrates the vulnerability of the west country to weather conditions and our lack of resilience. Will the Secretary of State consider carefully the need to provide alternative main line railway routes into the west country and also look at the road situation, because at the moment we are dependent on the M5 and the totally inadequate A303?

[Mr McLoughlin]

I understand the points my hon. Friend is making. There are a few things we need to do. First and foremost, we need to reassure people that the south-west is open for business and that the road network overall is working well. This morning, I had a meeting with the country’s main coach operators about their laying on extra services, which they are doing, and as we approach next week’s half-term holiday, and the Easter break as well, people and businesses in the south-west want to get the message out clearly that they are open for business and that the south-west is not a closed area; and certainly the road network gives us that option.

On alternative routes, I want to see the Dawlish route reconnected as soon as possible—Network Rail estimates it will take six weeks, once it starts construction properly, to re-establish the line—but my hon. Friend is right that we should look at the lines that have been closed. It is not the fault of this Government, or even the last Government, that they are closed. Since 1965, successive Governments have seen development take place over some of these lines.

[Sheila Gilmore (Edinburgh East) (Lab)]

I am sure that the Secretary of State will join me in praising the work of East Coast staff who dealt with customers stranded on the Yorkshire moors last night.

When the Secretary of State and his team give figures on the late running of East Coast trains, will they attempt to differentiate in respect of the weather problems over the past two years—they have not occurred only this month—and will they not blame East Coast for them?

[Mr McLoughlin]

There can be many reasons for train delays, and sometimes they are completely outside the control of Network Rail or the rail operators. I readily accept that point. Some of the problems faced by operators, even leaving aside exceptional storms, are completely outside their control.

[Mr Simon Burns (Chelmsford) (Con)]

Conservative Members welcome the decisive action of the Prime Minister and the Department for Transport in seeking to tackle the immediate problem and the extra money made available to repair the network. However, will my right hon. Friend accept that the important thing over the longer term will be greater resilience and improvement to the whole rail network? Will he confirm that the £38.5 billion for greater resilience to be made available over the next control period will exclude the additional money for High Speed 2?

[Mr McLoughlin]

I am grateful to my right hon. Friend, who knows better than most the immense work going into improving resilience. Not long after I was appointed to this post, I went to Shugborough tunnel, which was closed over the Christmas period as it was being relaid; about £3 million was spent on getting the rails up and putting new drainage in. The works meant that trains could run through the tunnel at 125 mph rather than 50 mph. Nobody will have seen that £3 million being spent but it was one part of the very many things going on across the whole rail network that improve the facilities and services for our constituents.

[Huw Irranca-Davies (Ogmore) (Lab)]

As the Secretary of State will know, if there is genuinely new money, there will be discussions about the Barnett consequentials. Are such discussions going on? If he cannot reveal a figure, will he at least confirm that the announcements over the past couple of weeks have been about new money? If so, there will be Barnett consequentials.

[Mr McLoughlin]

Network Rail serves Wales as well, so Wales will get its share of the money that Network Rail is investing in the whole railway structure.

[Anne Marie Morris (Newton Abbot) (Con)]

I thank the Secretary of State for his support for and visit to Dawlish; they were very much appreciated by one and all. I join him in thanking Network Rail. I also thank my local council and volunteers who did a sterling job in extremely difficult circumstances.

As the Secretary of State has seen for himself, the line is crucial not only to my constituency but to others further south-west. The local economy depends on it. Can he assure me that he recognises that and that he is committed to ensuring that the line is sustainable for the long term and to researching what needs to be done to make it truly resilient?

[Mr McLoughlin]

I can certainly give my hon. Friend a promise about the commitment that she seeks; the hon. Member for Somerton and Frome (Mr Heath) also asked the question. I know how important the main line to Dawlish and my hon. Friend’s constituency is. The other thing that we need to consider is whether we can build in better resilience than went into the wall when it was first built more than 100 years ago.

[Mr Jim Cunningham (Coventry South) (Lab)]

Has there been any major damage to the west coast main line and will the Secretary of State invest any new money into it? Will he also find out why there are regular hold-ups on that line between Birmingham and Euston?

[Mr McLoughlin]

One of the reasons why there might be regular hold-ups was pointed out by my right hon. Friend the Member for Chelmsford (Mr Burns) a moment ago: the question of capacity on that line. The hon. Gentleman will remember that the west coast main line saw investment of more than £9 billion, all north of Rugby. That went some way towards improving certain bits of the line’s capacity, but it did not improve the capacity into London.

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

I thank the Department for the work it is doing. I understand that the East Coast trains were rescued by diesel trains following the catastrophic failure. Will the Secretary of State give the House an assurance that there will always be a fleet of diesel trains to use in scenarios such as these?

--- Later in debate ---

[Mr McLoughlin]

I might just want to think a bit more about promising that there will always be diesel trains. We are investing a huge amount of money in the new intercity express programme trains to serve on the east coast route. I cannot give my hon. Friend an absolute commitment at the Dispatch Box today, but I will certainly investigate the point that she has made.

[Wayne David (Caerphilly) (Lab)]

Given that the Secretary of State obviously has difficulties with Barnett consequentials, may I simply ask him how much extra money will be coming to Wales?

[Mr McLoughlin]

I think that that is a question for the Secretary of State for Wales—[Interruption.] I do not have any problems whatever with the Barnett formula. The point that I am making about Network Rail is that it serves England and Wales.

[Mike Thornton (Eastleigh) (LD)]

As the effects of climate change multiply and increase, it is likely that events that now seem unusual will become more and more usual. Can the Secretary of State assure me that his current plans for transport infrastructure strengthening will be reviewed in the light of the fact that what is happening at the moment will not be a one-off event?

[Mr McLoughlin]

The last major review we carried out covered the way in which the Department responded to extreme cold weather, and to snow and ice in particular. A lot of resilience factors were built into the network as a result of that. We learn from any kind of event, and we try to ensure that those lessons are put to good use. I hope that that answers the hon. Gentleman’s question.

[Angela Smith (Penistone and Stocksbridge) (Lab)]

What is the Secretary of State’s estimate of the cost to businesses of the severe travel disruption?

[Mr McLoughlin]

At this stage, it is too early to give an exact figure. I have heard examples of some very stoical people going to exceptional lengths to get to work and keep their businesses operating, but at this stage it is too early to give the hon. Lady an exact answer.

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

I thank my right hon. Friend for coming down to Plymouth last Friday, about 36 hours after the great event at Dawlish. There is obviously considerable concern about what is going to happen there. Would he be willing to set out a timetable for the work that will ensure we have a resilient railway line in the long term? Will he also ask the Leader of the House whether we can have a proper debate on this matter? It is incredibly important that we get this right, and that people know what we are going to do.

[Mr McLoughlin]

I will not trespass on the responsibilities of others in relation to promising debates on the Floor of the House. I was once in a position to deal with such questions, but I no longer do so. I will therefore leave that matter to my right hon. Friend the Leader of the House, who will be making a statement after I have spoken. My hon. Friend also asked about long-term resilience, and he is absolutely right. When I was in his constituency, he told me specifically how these events were affecting his constituents. He also told me how determined he was to get a service for people to travel from Plymouth to London in under three hours; it is a matter of urgency for him. He has made his point, and I will look at ways in which we can try to achieve what he wants.

[Kevin Brennan (Cardiff West) (Lab)]

I would like to be clear about the exact figure on the cheque. I think the Secretary of State announced spending of about £125 million in his statement. How much of that is actual new spending, and how much of it relates to devolved competences?

[Mr McLoughlin]

The hon. Gentleman is fixated on new spending, but I do not see anything wrong, when coming to the end of the financial year, with looking at any underspending in the Department and using it. If there is cause for new money, I will have discussions with the Treasury about it. Likewise, the natural consequences of any decisions taken by the Government will flow through to Wales under the agreed formulae.

[Mark Pritchard (The Wrekin) (Con)]

During the night, Shropshire was hit by winds of up to 76 mph, and this morning more than 4,000 homes and businesses are without power. Will the Secretary of State join me in encouraging ScottishPower and other power companies to get the lights back on in Shropshire? Will he also join me in praising the hard work of West Mercia police, the Shropshire fire service, Telford & Wrekin council and Shropshire council staff?

[Mr McLoughlin]

I join my hon. Friend in saying that a number of people—and not only the ones he mentioned —have shown great stoicism in trying to make sure that services are provided, be they Network Rail staff, local authorities, the Environment Agency or the emergency services. A plethora of people have done fantastic work, and not just last night, which was when his constituency and his area of Shropshire were directly affected. Since Christmas a huge amount of work has been done by these emergency services, which have shown themselves to be right up to the task.

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

The incident at Dawlish highlights the problems that occur when no alternative rail route is available, and some of the disruption of the lines from England to Scotland in recent years has been exacerbated because of a lack of alternatives or because the available alternatives were not put into effect quickly. Clearly, one cannot build alternatives to cover every situation that might arise, but will the work on resilience—the word the Secretary of State is talking about—examine the possibility of making sure that it is much easier to use alternative routes when disruption occurs? Will there be an examination of the case for reopening currently closed lines to ensure that decent alternative routes are available?

[Mr McLoughlin]

Obviously, that is one thing we have got to look at in the long term. I am pleased to have been able to announce the reopening of several stations. There has been a huge change in the way people look at the rail service; they want a good reliable rail service, and that is important. We are seeing more people using the railways now than we have for a long time. In the past 20 years, the number of passengers has gone from 750 million to 1.5 billion, and there has also been a huge increase in freight on the railways, which we all welcome.

[Sir Richard Ottaway (Croydon South) (Con)]

The Secretary of State will be aware that the A22 in my constituency has been closed for several days, causing substantial disruption to traffic in south London. The closure is caused not so much by the flooding, which is adjacent to the A22, but by the installation of machinery to limit further flooding. Will he confirm that the package of compensation for businesses that has been announced applies to businesses that may not necessarily have been flooded but which are affected by the consequences of flooding?

[Mr McLoughlin]

I would like to look into the very valid points that my right hon. Friend has made and the particular cases to which he is referring.

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

Is the Secretary of State satisfied that rail passengers in particular are being kept up to date with information about travel disruption? If he is not, what more can be done?

[Mr McLoughlin]

The hon. Lady makes a good point. I have asked the train operating companies to do a lot more on the social media network, which they are doing. One of the frustrating aspects of this situation for people is trying to get information. A lot of people who use the railways do not use social media, and there is a difficulty there, but we are trying to make as much information available as we possibly can.

[Mr Marcus Jones (Nuneaton) (Con)]

These are unprecedented weather conditions, and I commend my right hon. Friend for the work he is doing. I also commend all the people across the country who are working so hard to get our rail and road network open again and back to normal. Many of my constituents depend daily on the west coast main line. What more is the Secretary of State doing to make sure that there is better resilience against this type of weather on that line?

[Mr McLoughlin]

As I said, north of Rugby, a huge amount of money has been invested on the west coast main line. There is still more work to be done; for example, there is more work to be done on signalling, which will be happening this year as far as Watford is concerned. That will have an impact, providing better resilience overall to the services to which my hon. Friend refers. As he rightly says, that line is one of the busiest railway lines anywhere in Europe.

[Kerry McCarthy (Bristol East) (Lab)]

Not only do rail users in Bristol have to contend with the usual overpriced, overcrowded trains, but they are now being hit by disruption in both directions; it is affecting train services from Bristol to the west country and the Reading to Paddington section of the Great Western line. What support is available for rail users in Bristol? What compensation will be available for them?

[Mr McLoughlin]

I understand what the hon. Lady says. As I said just before this statement, I have had a meeting with all the coach operators, and they have agreed to put on extra services. Those services are available and a lot more are being laid on. They are seeing a rise in patronage, and their prices are very competitive indeed.

[Henry Smith (Crawley) (Con)]

I welcome the additional support the Government are giving for extra flights between London Gatwick and Newquay Cornwall airports. I also welcome the fact that, since 2010, £11.7 million has been spent on the Upper River Mole protection scheme, which has certainly helped my constituency over the past couple of months. Last night, there were some concerns that groundwater levels in this unprecedented weather were causing some disruption to the London to Brighton main rail line. Will my right hon. Friend assure me that the Department for Transport will work on the important interchange between Gatwick airport and the rail route coming into London?

[Mr McLoughlin]

I can assure my hon. Friend that we are keeping a close eye, both with Network Rail and all the other services involved, on water levels. As I said earlier in my statement, the levels are considerably higher than they have been for some time. The point that he makes about Brighton and the line from Gatwick to Brighton is an important one. We are monitoring that closely.

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

May I remind the Secretary of State that, in a crisis such as this where so many people are having a miserable time and we have had loss of life—thankfully, a small loss of life—it is nice to have all-party agreement? None the less, it is also the job of the official Opposition to hold the Government to account, whether it is over the 560 redundancies that the Prime Minister did not want to mention yesterday, or over the question of whether this is new money. On the substantive point of the resilience of our network, it is all very well having new rolling stock, but my constituents travel up and down from Yorkshire on the east coast line and every time, with much less weather disturbance than this, it is the overhead lines that go down. That is the resilience that we need to tackle. It is no good having new trains without changing the overhead lines.

[Mr McLoughlin]

I know that the hon. Gentleman always tries to be cross-party consensual in these sorts of questions in the House; he is renowned for it. On this particular occasion, I simply say that I agree with him.

[Mr Speaker]

What was that very substantial tongue that I saw firmly embedded in a cheek when the Secretary of State was addressing the House?

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

I welcome the statement by the Secretary of State. I thank him, his Department, the Highways Agency and all the other agencies for what they are doing to get the M2 back to normal following the discovery of a 16 feet sinkhole in the inner reservation. What steps are being taken to address the concerns about sinkholes, as they pose a real risk to road safety?

[Mr McLoughlin]

My hon. Friend the Under-Secretary of State who is responsible for roads is looking at that particular incident this morning. Sinkholes are not common events, but obviously we need to learn any lessons that we can from them. We also need to do the proper work to ensure that no further damage has been done to the road network before we reopen it. However, that part of the road network is now partially reopened.

[Nia Griffith (Llanelli) (Lab)]

This month, we have seen the dramatic pictures of Dawlish, but last month the sea washed away part of the main line to south-west Wales in my constituency. We saw even more dramatic pictures in the north with the Cambrian coast line. Many of the railway lines along our coast are part of flood protection measures. Barnett consequentials for Wales are a matter for every single Department across Government. Will the Secretary of State work with his colleagues in the Department for Environment, Food and Rural Affairs to work out exactly what Wales is due and then let us know?

[Mr McLoughlin]

As I have said, any Barnett consequentials that are necessary will take place.

[Mr Philip Hollobone (Kettering) (Con)]

The Transport Secretary will know that the midland main line runs diesel services through Kettering to his constituency in Derbyshire. He will also know that all too often those services are disrupted because the overhead line south of Bedford, which is used by First Capital Connect and Thameslink services, has gone out of commission. I echo the point about the resilience of the overhead lines. Will the Transport Secretary assure us that Network Rail realises that point and will put more investment into ensuring those lines stay up?

[Mr McLoughlin]

I am very pleased to say that the Government will be electrifying the whole of the line to Sheffield, which has been called for for a very long time. The electrification of our railways—we are committed to electrifying more than 800 miles in the next control period between 2014 and 2019—is very important for the long-term future of the railways in this country.

[Jeremy Lefroy (Stafford) (Con)]

My right hon. Friend is absolutely right to mention resilience and the importance of building that into any future lines. We have world-class tunnelling expertise from Crossrail, so can we ensure that far more of our rail lines are put in tunnels rather than deep cuttings? Earlier, he mentioned Shugborough tunnel in my constituency, which was put there to ensure that local residents—particularly, I believe, the Earl of Lichfield—were not disturbed by the line.

[Mr McLoughlin]

I cannot think what other tunnelling my hon. Friend might have in mind. Next year, we will see the completion of tunnelling for Crossrail, which has been a substantial investment in the rail infrastructure of this country.

Oral Answers to Questions

Lord McLoughlin Excerpts

Thursday 6th February 2014 Commons Chamber

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

1. What the average spend per head of population on transport services was in (a) Yorkshire and (b) London in the last 12 months.

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

The Treasury estimates that identifiable public expenditure on transport in 2012-13, the most recent year for which full figures are available, was £246 per head in Yorkshire and the Humber and £545 per head in London.

[Mr Sheerman]

When it comes to statistics, I tend to trust the Institute for Public Policy Research and the House of Commons Library more than I do the Department. The last time IPPR North looked at the figures on infrastructure spending, it was approximately £2,500 per capita in London and £500 in the north-east. Infrastructure investment is desperately needed outside London. Why can the Secretary of State not make a commitment? He has his heart in the north. Why does he not do something about it?

[Mr McLoughlin]

The hon. Gentleman can use whichever statistics and figures he wishes to. I, too, have asked for other figures. In 2009-10, the spend for Yorkshire and the Humber was £283 per head and £754 per head in London. I am pleased that under this Government transport spending in the north has gone up from 38% to 45%. It is important to make the point that the Kings Cross station development and the Alexandra Palace to Finsbury Park six-tracking are allocated to London spending, but the benefits will be enjoyed by all east coast main line users. It is not always possible to put the value of spending down to certain parts of the country.

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

We have seen good progress on rail investment, particularly in the north. What impact does the Secretary of State think HS2 will have on the local economy in Yorkshire?

[Mr McLoughlin]

HS2 is vital for the long-term capacity of the rail network. We have seen a massive increase in patronage, both in passengers and freight, and I welcome that. If we are to see that continue to grow, we have to increase capacity.

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

The spend in London reflects the importance of transport to London. Even as we speak, millions of Londoners are struggling to work because of the dispute. We know that the majority of Londoners do not want every ticket office closed down. What is the Secretary of State doing to make the Mayor of London negotiate with the RMT?

[Mr McLoughlin]

The other day I heard the leader of the RMT say that his holiday last week was planned 11 months ago. Presumably, when he called the strike date, he knew when his holiday was. The least he could have done was to abandon his holiday before the strike action and be in the country, ready to negotiate. I am waiting for the hon. Lady and other Opposition Members to condemn this outrageous strike action, which is causing nothing but misery to millions of people who work in London. They should condemn it, as I do.

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

The spend on transport services in Yorkshire and London must also include the compensation paid to people adversely affected by services such as HS2. When are the Government going to pull their finger out and announce the compensation package for my constituents and others affected up and down the country, and let them know what they can expect to get for their properties, which are being rendered worthless by this scheme?

[Mr McLoughlin]

My right hon. Friend knows that I take the issue of compensation incredibly seriously. We promised to consult again on this and we have done that. I will attempt to come forward with the conclusions of that consultation as soon as possible. I am in no doubt about the problems faced by many people on the proposed route, and I take those responsibilities very seriously indeed.

[Mr Dennis Skinner (Bolsover) (Lab)]

Is it not a fact that it takes two sides to create industrial action? The problem with the Tory Front Bench is that they dare not attack Boris Johnson for not conducting talks, because half of the Tory MPs want Boris Johnson to be their next leader. That is the reason.

[Mr Speaker]

On transport services between Yorkshire and London.

[Mr McLoughlin]

I will try to stay in order, Mr Speaker. The hon. Gentleman says it takes two to talk, but if one of the main leaders is out of the country the week before—Rio Bob, I think we should call him—then it is difficult to have those conversations.

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

The main cheerleader for HS2 in the midlands has consistently been the Birmingham chamber of commerce. We now discover it received £14,400 from HS2 for the period between September 2013 and August 2014 in so-called patronage fees. It has always been my understanding that patrons provide funding, not receive payment as an inducement. Will my right hon. Friend point out what other organisations have received similar patronage fees from HS2 for supporting this project?

[Mr McLoughlin]

What matters is that HS2 is of fundamental importance not just to Birmingham, but to Manchester and all our other northern cities. It is a very important project that deserves the support of the House, but I understand that people who have the route going through their constituencies have big problems, and I will always meet colleagues to discuss them.

[Sheryll Murray (South East Cornwall) (Con)]

2. What steps he is taking to increase the availability of wi-fi on the UK rail network.

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

I fully recognise the importance of good mobile services for passengers on board trains. We have met the rail industry and secured its agreement to roll out improvements to mobile services across the rail network, starting this year. We expect significant improvements across key routes, starting with comprehensive coverage achieved by 2019. Network Rail and train operators are working jointly to fund and deliver the improvements based on collaborations with mobile network operators.

[Sheryll Murray]

Will my right hon. Friend ensure that my constituents have trains that are running with adequate seating so that people can use the wi-fi?

[Mr McLoughlin]

I will say something in topical questions about the appalling situation faced by Devon and Cornwall MPs as regards the rail service in their areas. I fully accept what my hon. Friend says. I met her and other Members last night to discuss the situation and its effect on their constituencies, and I will be saying a little more later on.

[Mr Ben Bradshaw (Exeter) (Lab)]

While good wi-fi is important for rail travellers, the trains need to be running in the first place, so I will invite the Secretary of State, if he does not mind, to say a little more about what he is doing to ensure that this vital main line into the south-west is reopened as quickly as possible, and about what he will do in the long-term to help deal with the vulnerability of the line at Dawlish?

[Mr McLoughlin]

I am trying to keep in order by sticking to the issue of wi-fi, but I well understand the concerns of the right hon. Gentleman and other hon. Members who came to see me last night, with Robin Gisby, the managing director of Network Rail, to talk about the situation at Dawlish and how it has basically cut off services to Devon and Cornwall. I have not yet had the full engineering report, because it has not been possible to get it, but I can assure the right hon. Gentleman that I am working with Network Rail to restore the service as quickly as possible and to carry out a more vigorous review of some of the alternatives available.

[Mr Speaker]

As the Clerk Assistant has just pointed out to me, Members’ approach to Question 2 might best be described as “broadband”.

[Andrew George (St Ives) (LD)]

On the same theme, it is important to recognise that to have a resilient wi-fi service on our rail service, we need to have a resilient rail service. In view of the Secretary of State’s earlier reply, does he not accept that if we are to invest properly in a resilient service down to Penzance, in my constituency, we need to ensure that there is funding comparable to the money being spent on HS2 and other services?

[Mr McLoughlin]

I will be asking for further work to be done on the question of resilience in the south-west, as I indicated to the hon. Gentleman in the meeting last night. Over the next five years, between 2014 and 2019, Network Rail will be spending £38 billion on the existing railway network. There is, therefore, no shortage of understanding from the Government of the importance of rail services across the whole country. As far as services in Devon and Cornwall are concerned, I also take those responsibilities incredibly seriously.

[Lilian Greenwood (Nottingham South) (Lab)]

The introduction of wi-fi on First Great Western is undoubtedly good news for passengers, but given that the Government’s incompetent franchise extension negotiations have lost the taxpayer £100 million in premium payments this year, is this not the most expensive internet upgrade in history?

[Mr McLoughlin]

I am not sure what that has to do with the internet upgrade. Obviously, when a new franchise contract, or short-term contract, is leased, various matters are taken into account, including the age and replacement of rolling stock. If the Labour party is not committed to that, I wonder what Labour Members would say to Bombardier, which today won a rolling stock contract that will be very important to Derby and Derbyshire. Would they say that they were opposed to it?

[Joan Walley (Stoke-on-Trent North) (Lab)]

3. What support is available to people with disabilities at railway stations with no disabled access.

--- Later in debate ---

[Mr Speaker]

The road in question is immensely important, but I do not think that it is a motorway,

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

A broadband approach.

[Mr Speaker]

Indeed. There is a degree of ingenuity about the hon. Member for Thirsk and Malton (Miss McIntosh) with which I am very familiar.

--- Later in debate ---

[Andrew Percy (Brigg and Goole) (Con)]

6. What plans he has to set up a High Speed 2 skills academy.

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

In January, the Government announced their intention to set up a new college to train the next generation of world-class engineers to work on the construction of High Speed 2. My Department is working with the Department for Business, Innovation and Skills and HS2 Ltd to develop the proposals, which are currently at an early stage.

[Andrew Percy]

My right hon. Friend will know of the proud manufacturing heritage in the Humber—in east Yorkshire and north Lincolnshire. May I suggest that he ensures that any such skills academy is located in the Humber, and that a perfect location would be in Scunthorpe, which was recently awarded a university technical college?

[Mr McLoughlin]

I am pleased about the awarding of the UTC in my hon. Friend’s area, and he doubtless campaigned for it vigorously. I know that he will continue the campaign to get the HS2 skills college. I have had a number of requests from various hon. Members as to where this college should be located.

[Mr Brian H. Donohoe (Central Ayrshire) (Lab)]

As an ex-apprentice, I am very passionate about the idea of creating more apprenticeships, and this project presents an ideal opportunity. Labour is committed to creating one apprenticeship for every £1 million spent. Will the Government do likewise?

[Mr McLoughlin]

What is important is the way in which we have massively increased the number of apprenticeships. Part of today’s announcement about Bombardier means that there will be an increase in apprenticeships in that area, and I am looking at every possible avenue to encourage apprenticeships.

[Heather Wheeler (South Derbyshire) (Con)]

Again, may I congratulate Ministers on the brilliant result of Bombardier getting the Crossrail deal and the 80 apprentices that that contract will bring? Would it not make complete sense for this academy to be based in Derby?

[Mr McLoughlin]

As I said to my hon. Friend the Member for Brigg and Goole (Andrew Percy), there will be a number of applications for the location of this academy. I join my hon. Friend the Member for South Derbyshire (Heather Wheeler) in congratulating Bombardier, which won this Crossrail contract against some stiff competition. It just shows that Bombardier can win competitions for rolling stock and that the Government are committed to providing that rolling stock, too.

[Nic Dakin (Scunthorpe) (Lab)]

What assessment was made of the capacity and expertise of existing further education colleges before the decision was made to spend £20 million of scarce public money on a new academy?

[Mr McLoughlin]

I am pleased that the hon. Gentleman seems not to be bidding; there will be one fewer venue to consider as a result of that sort of intervention. It is not often I hear people complaining about the Government investing in higher education and the future of our engineering skills. I am very proud we are doing it—it will be £20 million well spent.

[Mr Dominic Raab (Esher and Walton) (Con)]

7. What steps he is taking to improve value for money for rail passengers.

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

We are driving efficiencies through our franchising programme and franchise management, and by encouraging co-operation across the industry. Working with the regulator, we have cut Network Rail’s costs by 40% since 2004, and it has a further efficiency target of just under 20% by 2019. We have also shown our commitment to giving value for money this year by capping the average regulated fare rise at the retail prices index only. That is the first time this has happened in 10 years.

[Mr Raab]

I thank the Secretary of State for that answer, and I welcome all the measures to which he has referred. Last year, South West Trains paid the Department for Transport the highest premium per passenger kilometre of any operator but had the fourth highest level of overcrowding in London and the south-east. So what more can be done to deliver better value for money for passengers on South West Trains?

[Mr McLoughlin]

I fully accept the points about my hon. Friend’s constituents, and one thing we have been doing is increasing the availability of rolling stock. A number of new trains are on order which will serve his constituents, and I hope that that will bring some relief to the overcrowding. He rightly says that a number of commuters live in his area, and there are problems in providing the peak-hour trains for everybody who wants to travel then. That is why I want to see further encouragements to spread the morning rush hour.

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

Value for money for passengers travelling down to the south-west has always been an issue, but with the destruction of the rail line there is growing concern that the need to spend money following this climate problem will fall to passengers and they will find themselves picking up the bill. Will the Secretary of State confirm that the Prime Minister’s promise made yesterday, which can be found at column 269 of Hansard, will be honoured and that the Government will take their share of the burden?

[Mr McLoughlin]

I am glad that the hon. Lady could join me at the meeting last night with Network Rail, and I am grateful to all the colleagues who attended at short notice. My right hon. Friend the Secretary of State for Communities and Local Government will make a statement later this morning and give further details of the help that we will make available to those areas. No one can have seen the pictures of Dawlish yesterday without having tremendous sympathy or realising the scale of the problems that we have to overcome.

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

Does my right hon. Friend accept that passengers from my constituency on the West Anglia line could be more readily persuaded that there will be value for money if there were an early promise of new, not hand-me-down, rolling stock to replace the elderly type 317s on which they mostly have to rely?

[Mr McLoughlin]

I know that my right hon. Friend continues to make this case—he made it to me when I was in his constituency not many months ago—and I will bear in mind what he says. We are investing huge amounts in new rolling stock, including the new intercity express trains, the new trains for Crossrail and the other rolling stock orders that we have placed, which will benefit the travelling public.

[Emily Thornberry (Islington South and Finsbury) (Lab)]

15. The efficiency of the underground railway in London is the reason, we are told, why the changes will be made. While my constituents welcome the increased hours that the underground is likely to be open, they are concerned that it will mean fewer staff on duty overall. I have written to Transport for London to ask how many staff will be on duty, for example, at Angel, Islington at 3 am, but it has been unable to tell me. Will the Secretary of State help? Would he allow his teenage children on the underground at 3 am? Does he think that would be safe?

[Mr McLoughlin]

The hon. Lady says that her constituents rely on the underground, but I have yet to hear any Opposition Member condemn the strike action that is causing suffering to many millions of people in London and surrounding areas. It is all very well calling for extra capacity on the railways and the underground, but if strike action means that people cannot use them, it is ineffective.

[Mr Philip Hollobone (Kettering) (Con)]

8. What recent progress has been made on (a) Highways Agency works to widen the A14 between junctions 7 and 9 and (b) Network Rail’s reconstruction of the Pytchley Road road bridge over the Midland main line in Kettering.

--- Later in debate ---

[Craig Whittaker (Calder Valley) (Con)]

9. What plans he has to introduce new rolling stock on the railways.

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

I would draw the House’s attention to my statement this morning about the preferred bidder for the £1 billion Crossrail rolling stock and depot contract. Combined with IEP and Thameslink, more than 3,100 new carriages will be in service by the end of 2019. In addition, through the franchising programme we expect the market to deliver additional rolling stock solutions, building on the possibilities created by the rail investment strategy’s electrification projects and capacity increases.

[Craig Whittaker]

The Government need to be applauded for investing £8 million in the reopening of the Todmorden curve railway line between Todmorden and Burnley, which is due for completion in May. Will the Secretary of State update us on whether any progress has been made with Northern Rail on the procurement of a further diesel train so that the service can start before December?

[Mr McLoughlin]

I well understand the points my hon. Friend makes. I know that Northern Rail has been working on how best to deliver those services, including the provision for rolling stock. A small number of diesel trains from within the current northern fleet may become available for use on this service from December 2014 when the electric trains are due to start operating on some services between Liverpool and Manchester, but I know and understand my hon. Friend’s desire to get a service up and running sooner. I will personally look into what can be made available.

[Fiona Mactaggart (Slough) (Lab)]

New rolling stock will be required on the very welcome new line planned from the Great Western main line into Heathrow, which was announced today. Will the Minister take action to speed up the delivery of that line? If we wait until 2021 to deliver that line, some of the businesses in the Thames valley which have been hanging on for western access to Heathrow might leave the country. Can he do more to speed it up?

[Mr McLoughlin]

We are investing record amounts in the rail industry. I will certainly look into the point the hon. Lady makes, but it is one of many demands as far as rail services are concerned.

[Pauline Latham (Mid Derbyshire) (Con)]

18. Will the Secretary of State join me again in welcoming the fantastic order won by Bombardier, but could we also encourage Bombardier to use its local supply chain industry, because we have a centre of excellence in Derby for engineering and knock-on industries and it would be very good if it could spread the load and invest in the local area?

[Mr McLoughlin]

I very much agree with my hon. Friend and I know she will be delighted at today’s announcement. It is worth pointing out that in Derby we have got not only Bombardier but Rolls-Royce and Toyota and just over in Staffordshire—but I almost regard it as Derbyshire—JCB, all providing an engineering centre of excellence. It is true that some 71% of this new contract will be based on small and medium-sized industries in this country. I forgot to say that JCB is also in the constituency of my hon. Friend the Member for South Derbyshire (Heather Wheeler).

[Kerry McCarthy (Bristol East) (Lab)]

10. What assessment he has made of the effects of rising bus and train fares on the cost of living and the cost of travelling to work.

--- 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)]

I am sure the whole House will want to join me in expressing sympathy for those who have been affected by the extreme weather conditions. An urgent priority is the railway at Dawlish. Colleagues will have seen the images of the devastating impact the weather has had on the railway there. I met members of all parties of Devon and Cornwall yesterday evening alongside Network Rail. The immediate priority is to assess the damage and develop a plan for getting the line back into service as soon as possible, but I am acutely conscious of the need to develop a long-term solution for the resilience of the railway network in the south-west and I have asked for a report to me on the options for addressing this problem.

[Mrs Riordan]

The Calder valley line was recently excluded from the list of northern lines to be electrified. Will the Secretary of State look again at this and back my and the Halifax Courier’s campaign to get this line electrified as soon as possible?

[Mr McLoughlin]

I met an all-party group on rail electrification a few weeks ago and discussed the matters that the hon. Lady has just relayed. I fully accept that there is a lot of pressure on us to extend electrification. I am proud that we have set a target for Network Rail of 850 miles in the next control period. I am certain that other cases will be made. Let me stress to her that our target of 850 miles is 841 miles more than the previous Government achieved in 13 years.

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

T2. Will my right hon. Friend join me in congratulating c2c on transforming what used to be known as the misery line, from Fenchurch Street to Southend, to the cheerful line, thus meaning that it should have its franchise renewed? By contrast, Greater Anglia railways must have the most clapped-out, dirtiest rolling stock in the world.

[Mr McLoughlin]

Whenever I hear my hon. Friend’s voice behind me in the House, it always cheers me up. The transformation of the line into Fenchurch Street is largely the result of investment by Network Rail and the Department for Transport in both infrastructure and the rolling stock. The bids for Essex Thameside are currently being evaluated, and the Department will seek to announce a preferred bidder shortly.

[Mary Creagh (Wakefield) (Lab)]

Freak weather is rapidly becoming the new norm in our country, and I understand the difficulties that the Secretary of State has in giving a time scale for the Dawlish repairs, given that further bad weather is forecast for Saturday. None the less, every week the line is closed is costing the regional economy tens of millions of pounds. Will he keep the House updated and look urgently and strategically across the whole rail network, including at Wales, the north-east and Scotland, to see how we can make it more resilient against future storms?

[Mr McLoughlin]

In answer to the hon. Lady’s question, I simply say yes. That must be the first time that anyone has been able to do that.

[Neil Parish (Tiverton and Honiton) (Con)]

T3. There is no doubt in my mind that the west country is the most important part of the country. At the moment, not only do we have problems with the main rail down through Dawlish and Exeter, but we need to upgrade the Exeter to Waterloo line. We also need that second arterial road route, the A30-A303, to ensure that we get access to the west country

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

T4. I know that the Secretary of State gets on well with the Secretary of State for Communities and Local Government, who is encouraging muscular localism and local referendums. Will he do the same in those communities, the big cities, where no one has been consulted about the value for money and the impact of High Speed 2?

[Mr McLoughlin]

There have been many opportunities to raise the issue of HS2. I am pleased that the paving Bill received the overwhelming support of the House of Commons, and I regard that as an important referendum in itself.

[Nigel Mills (Amber Valley) (Con)]

T5. While joining in the welcome for the Crossrail award to Bombardier this morning, may I invite the Secretary of State to my constituency to see the real harm caused by the level of noise from the A38 to people living far too close to that road?

[Mr McLoughlin]

As I drive through my hon. Friend’s constituency on a regular basis, I am more than delighted to come and talk to him and his constituents about some of the problems that noise creates for them as a result of the traffic on the A38.

[Gavin Shuker (Luton South) (Lab/Co-op)]

T7. Will the Secretary of State join me in welcoming the granting of planning permission for the expansion of Luton airport? It will help the Government with their capacity problem in the south-east and do so without the extension of any existing runway or the building of a new one.

--- Later in debate ---

[Phil Wilson (Sedgefield) (Lab)]

Although, obviously, I am disappointed that Hitachi was not successful in winning the Crossrail bid, I am pleased for the people of Derby and think that it is good news for British jobs. I am sure that the House is aware that although all the bidders are foreign-owned, two are based in the UK: Hitachi in Newton Aycliffe in my constituency and Bombardier in Derby. Will the Secretary of State tell the House what processes are in place to ensure that the winning bidder will fulfil its contractual obligations?

[Mr McLoughlin]

As the hon. Gentleman will know, because he was very much involved when Hitachi won the intercity express programme order, there is a standstill period of an extra 10 days. What I announced along with the Mayor of London this morning was the preferred bidder. That process has to be gone through and it is right that it should be gone through. It all goes to show that Hitachi is investing in the hon. Gentleman’s constituency. I was up there a few weeks ago, and Hitachi has a huge order and is determined to win more, not only in the United Kingdom but across Europe.

[Philip Davies (Shipley) (Con)]

The only direct trains from Shipley to King's Cross are at 6.36 and 7.17 in the morning and the only direct train back is at 6.33 in the evening—all at peak times. When the east coast line is refranchised, may we have more direct trains to Shipley and at off-peak times so that my constituents can benefit from lower fares?

[Mr McLoughlin]

As my hon. Friend knows, the invitations to tender for services on the east coast line are being dealt with by the Department. I am sure that the people who monitor these sessions will take on board his recommendation.

[Paul Flynn (Newport West) (Lab)]

A while ago, a lorry caught fire on a motorway in my constituency. It was carrying ammunition, including Sidewinder missiles. Will the Minister consider approaching those who transport very dangerous materials, including chemicals, to suggest transferring those journeys from motorways to rail, where the chances of a catastrophe are greatly reduced?

--- Later in debate ---

[Sarah Newton (Truro and Falmouth) (Con)]

Although I greatly welcome today’s commitment to get our line open as soon as possible, does the Secretary of State agree that it is vital that we send out the message that Cornwall is still open for business? Will he therefore lay out plans for alternative bus services to replace the train services?

[Mr McLoughlin]

Yes, we will be considering a number of those issues and I hope shortly to be able to inform my hon. Friend and others from that area of the measures that we want to put in place. She is absolutely right that Devon and Cornwall are fantastic places to go. There have been some rough connection problems, and we have to sort them out, but Devon and Cornwall will still be a great destination for both Easter and half term.

[Several hon. Members]

rose—

Rail Infrastructure

Lord McLoughlin Excerpts

Thursday 6th February 2014 Written Statements

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

I would like to inform the House of the intention to award Crossrail’s rolling stock and associated depot facilities contract to Bombardier. In line with European procurement rules, the contract is now subject to a 10-day standstill period. Until this period is over, the contract award cannot be confirmed and Bombardier is unable to release information related to its bid.

The contract, which includes the supply, delivery and maintenance of 65 new trains and a depot at Old Oak Common for up to 32 years, has a capital value of around £1 billion. The contract will be between the successful bidder and Transport for London who will operate Crossrail as part of their services.

Together with the Mayor of London, my co-sponsor on the Crossrail project, I welcome this major milestone which Crossrail Ltd has reached ahead of schedule, ensuring the first trains are delivered by 2017 ahead of services commencing through the new central tunnels in late 2018.

Hon. Members will recall that the invitation to negotiate required bidders to meet a set of “responsible procurement” requirements on how they would engage with the wider supply chain and provide opportunities for training, apprenticeships, and small and medium-sized businesses within their procurement strategy.

Alongside this, bidders were asked to set out an estimate of the value of the contract that will be spent in the UK. While this was not an assessment criterion in the decision process, the successful bidder will be required to report against it following contract award.

Today, on the basis of that information, I can confirm that an estimated 74% of contract spend will remain in the UK economy as a result of this announcement.

Bombardier has confirmed that the new trains will be manufactured and assembled at their plant in Derby. This contract will support 760 UK manufacturing jobs plus 80 apprenticeships adding to the 55,000 jobs which will be supported by the Crossrail project over its lifetime.

The construction of the maintenance depot at Old Oak Common will see 244 jobs, plus16 apprenticeships and when fully operational will employ 80 people to maintain to the new fleet of trains.