Transport Infrastructure

Lord McLoughlin Excerpts

Tuesday 17th December 2013 Commons Chamber

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

With permission, Mr Speaker, I would like to make a statement about the work of the Airports Commission. I will also give brief details of my written ministerial statement from this morning on Network Rail’s reclassification.

In September last year, Sir Howard Davies agreed to chair an independent Airports Commission. That commission was asked to examine how the UK’s status as a leading global aviation hub can be maintained, and this morning it published its interim report. I have deposited copies of that report in the Library, and it is available on the Airports Commission’s website. I know this issue is central not only to our nation’s economic future but to those who use or work in airports, or who are affected by the impact of airports on their lives.

The UK is a leader in aviation, with the third largest aviation network in the world. The sector contributes £18 billion per year to our economy, and employs around 220,000 workers directly and many more indirectly. We need airports that put our country at the front of global competition and allow people to get to where they want to go. We also want airports that are quieter and meet our carbon commitments. Today’s report is an important step towards both goals.

Many Members of the House and their constituents hold strong views about the right outcome, and it is right that we respect that. I will be writing to invite Members to a briefing session early in the new year, when Sir Howard will explain the contents of the commission’s report in more detail. I take this opportunity to thank Sir Howard and his fellow commissioners—Sir John Armitt, Professor Ricky Burdett, Vivienne Cox and Dame Julia King, and Geoff Muirhead who stood down in September—for the care they have taken. Their interim report is a detailed and professional piece of work based on careful research, and it merits the fullest consideration.

It may be helpful if I provide a brief overview of the key issues that have been addressed. First, the interim report provides the commission’s advice on the level of future airport capacity this country will require, which is based on new evidence about a rapidly changing industry. The commission has also consulted a wide range of people and organisations, and as a result it offers a clear recommendation that there is need for new runway capacity in the medium term to support continued competitiveness and prosperity. We will, of course, be looking carefully at that recommendation and at how best we can take decisions that are in the long-term economic interest of the country, while respecting the environment and quality of life. Sir Howard is also clear in his report that there is no crisis of capacity now. He does, however, conclude that we will need one additional runway in the south-east by 2030, and in all likelihood a second by 2050. The commission is clear that those recommendations can be consistent with the UK’s climate change obligations.

Secondly, the commission has announced which long-term options it intends to take forward in the second phase of its work. The first option is Gatwick Airport. The commission will consider a new runway spaced sufficiently south of the existing runway to permit fully independent operation. The second and third options are for Heathrow Airport. The Commission will consider, first, a new full-length runway to the north west of the existing airport, as proposed by Heathrow Airport Ltd, spaced sufficiently to permit fully independent operation; and secondly, an extension of the existing northern runway to the west, as proposed by Heathrow Hub Ltd, which would allow it to be operated as two separate runways, one for departures and one for arrivals.

Options for the construction of a new airport in the Thames estuary have not been shortlisted by the commission at this stage. However, the commission intends to carry out further analysis of the feasibility and impacts of a new airport on the Isle of Grain and aims to reach a decision in the second half of 2014 on whether this constitutes a credible option for further development and detailed study. If this option is then added to the shortlist, it will be subject to a process of appraisal and consultation similar to that proposed for other shortlisted options. In phase two of its work, the commission will undertake detailed analysis and consultation on each of these locations, in partnership with promoters. It will also, of course, work with local communities and listen to their views.

On the third key issue, the commission also recommends action to make better use of our existing aviation infrastructure, particularly over the next five years. I welcome this fresh thinking, much of which is aimed at industry as much as the Government, about how we can make improvements to our already strong aviation sector. The commission has produced some interesting ideas including: the better use of airspace to improve resilience at London airports; trials at Heathrow airport to smooth the early-morning arrival schedule to minimise stacking and delays and to provide more predictable respite for local communities; and an independent aviation noise authority to improve decision making on noise issues. These are important recommendations that merit a response in advance of decisions on longer-term capacity. The Government will consider the short-term recommendations in detail and respond to them by the spring of next year. Finally, the commission proposes improvements to surface access to airports. The Government set out their initial response to these recommendations in their national infrastructure plan, published earlier this month.

I would also like to set out how we intend to address the concerns of people who live around sites subject to further consideration by the commission. Now that the commission’s report has been published, we will be working closely with promoters to consider the form and scale of any appropriate relief that might be put in place, and we will set out our thinking on this important issue in our response to the interim report.

I know that colleagues on both sides of the House will have their views on the content of the commission’s interim report, and in particular on the choices made in shortlisting those options. My principal concern as Secretary of State for Transport is to protect the integrity and independence of the commission process through to the final report, which we expect to be delivered by summer 2015. The Government will not therefore be commenting, either today or in responding to the interim report, on the respective merits of the options that have and have not been shortlisted. Given the vital importance of aviation to our nation, I urge colleagues to engage positively with the work of the commission as it moves into the next, equally important phase of its work. The variety of views in the House and beyond about the right way forward is proof that an independent commission, rather than ill thought out actions that might suggest other alternatives, is the right way forward. The commission process offers us the best chance we have to get this decision right.

I turn briefly to a second issue. Hon. Members will also be aware that today the Office for National Statistics announced that from 1 September 2014 Network Rail will be reclassified and appear on the Government’s balance sheet. As the Treasury and the Office for Budget Responsibility noted when my right hon. Friend the Chancellor made his autumn statement, this includes the company’s net debt of some £30 billion. I laid a written ministerial statement this morning, and I published a memorandum of understanding with Network Rail on my Department’s website and placed copies in the Libraries of both Houses. The MOU shows how my Department will work with Network Rail until its reclassification in September 2014. This independent, statistical decision will not affect Network Rail’s investment programmes, plans for High Speed 2 or the franchising programme.

The Government will continue to deliver vital improvements to all modes of transport so that transport can remain the engine for economic growth that it is. I commend this statement to the House.

[Mary Creagh (Wakefield) (Lab)]

I thank the Secretary of State for giving me notice and advance sight of his statement. I welcome the interim report from Sir Howard Davies. This is important work, and we will scrutinise it closely. It is vital that we take decisions about our airport capacity, including in the south-east, as it is important for Britain’s jobs, growth and competitiveness. Britain’s status as a global centre of aviation should be maintained.

It is good to see that the original Heathrow proposal for a third runway to the north of the current airport, which we were sceptical about, has been taken off the table. We also welcome the fact that this work takes into account our climate change obligations. As the commission now looks at specific proposals in more detail, we urge it to take into account the need to minimise the impact of increased capacity on local people and the environment. We are glad that the Government accepted our proposal to establish the commission, and we will look carefully at the report. The commission must be allowed to get on and complete its work on the long-term future of UK aviation.

Will the Secretary of State explain the exact status of the plans for an airport in the Thames estuary? I also want to ask him about the commission’s short-term recommendations. Will he introduce legislation in the Queen’s Speech in May to set up an independent aviation noise authority? If so, which Bill will contain the proposals? Can he say more about the optimisation strategy to improve the efficiency of UK airports in the short term? Communities that are currently affected by aviation noise want to know the Secretary of State’s position on additional night flights and on compensation for communities. Will he draw up plans to ensure that EU limits on air pollutants from existing aviation are met, as recommended by the Transport Select Committee?

On the reclassification of Network Rail, given that the Government already guarantee Network Rail’s debt, will its cost of borrowing now fall as a result of today’s announcement? Will the Government’s fiscal rules be changed to take account of the changes to debt and borrowing? Will today’s change affect the deficit? Will the Government and the Office for Budget Responsibility continue to publish borrowing and debt figures excluding these changes, as they have done with the transfer of the Royal Mail pension scheme, so that the underlying changes in borrowing and debt are transparent? Will the Government be taking any additional powers to direct Network Rail’s borrowing now that it will be on the Government’s books, or will the reclassification mean that Network Rail’s borrowing and debt have to be offset by further cuts and tax rises elsewhere? Could the change mean less money being available to invest in the railways? Can the Secretary of State guarantee that passengers will not face higher fares to pay for the debt reclassification? Does he anticipate any structural changes to Network Rail that would take the debt off balance sheet in the future?

The Secretary of State’s memorandum of understanding announced the appointment of an accounting officer to satisfy Parliament’s accounting and budgeting process. When will that person be in post? What will the audit arrangements be? When can we expect decisions from the Secretary of State on whether to appoint a special director to Network Rail, and on whether he will change the framework for Network Rail executives’ pay and bonuses? How many of them are currently paid more than the Prime Minister? Will he now personally sign off on their pay and bonuses? Can we expect greater transparency in the way in which Network rail operates? Who will be accountable for Network Rail’s performance? Will he tell us who is now responsible for safety on the railways? Is it Network Rail executives, Network Rail members, the permanent secretary or the Secretary of State himself?

[Mr McLoughlin]

I thank the hon. Lady for her—I am not quite sure how many—questions. A number were on Network Rail, on which I may respond a little later. It is always amazing to hear the way in which the hon. Lady tries to rewrite history. I notice today that she has said in a press release that it is good to see that the original Heathrow proposals for a third runway

“of which we were sceptical”

have been taken off the table. I cannot help but go back to the manifesto on which the hon. Lady fought the last general election; a manifesto written, I think, by the current Leader of the Opposition. The manifesto says:

“We support a third runway at Heathrow, subject to strict conditions on environmental impact and flight numbers”.

Something about which they are now sceptical was actually a core part of their transport manifesto at the last general election. I know that there is a rewriting of history going on but when something appears in the manifesto, it is usual to try to stick to it.

On the welcome for the setting up of Sir Howard Davies’ commission, I do not remember the calls for it initially; I think that the idea was put in place by my predecessor and was announced by me when I became Secretary of State for Transport. I am glad that the hon. Lady welcomes the report because this is a big infrastructure issue that takes time to develop. It takes time to work through all the proposals and it is right that we try, if possible, to get as much consensus as we can across parties. One of the commissioners did a report for Labour on infrastructure spending that was published not so long ago. I welcome the hon. Lady’s points on that.

On the Thames estuary proposals—the Isle of Grain— Sir Howard has said this morning in interviews and in the report that he would hope to have a view on that by the middle of next year and we will then know on which route we are going.

With the Leader of the House and the Chief Whip here, I am not at this stage able to announce what may or may not be in a future Queen’s speech. I did say that I will respond by the spring to some of the points that Sir Howard has made in the report and I shall stick by that commitment.

The hon. Lady asked me a number of questions about Network Rail. There will be more time for us to debate this issue as the change comes into operation from September 2014. But as I am here today making the statement, and as I have made a statement on the Office for National Statistics recommendations, which came through only this morning, I will be happy to deal in more detail with specific points that she raised on a number of issues.

One of the things that the Government and I are keen on is that over the next four years in the CP5 phase of Network Rail’s expenditure, it will invest £38 billion in the railways, far more than it has been investing for some years. That certainly is under no threat whatsoever. We will still see record levels of investment taking place. Some of the other questions the hon. Lady asked are on issues that the hon. Lady I am considering.

[Mr Simon Burns (Chelmsford) (Con)]

Will my right hon. Friend accept that too many Governments of all political parties have fiddled around on the question of airport capacity for too long, which is why the commission is to be welcomed so much? But does he agree that when the final recommendation is made, we need to seek political consensus across the chamber to be able to move forward as quickly as possible? How does he think that consensus can be achieved?

[Mr McLoughlin]

There may be a consensus, but there will always be a certain number of people who are against a consensus. I am not necessarily sure that one gets total consensus on any infrastructure project. It often depends on how it impacts on individual constituents, which is something we have to take into account. We should not run away from that. I hope that, as a result of the detailed work that is being done by the commission and the fact that it is being as open as possible in its dealings with everybody, it will be seen that it is doing a proper and constructive job and will enjoy widespread confidence. Today has been a good example of that, in the way that the shadow Secretary of State has welcomed the initial findings of the report.

[John McDonnell (Hayes and Harlington) (Lab)]

At a minimum, according to the report, 2,000 of my constituents will lose their homes, which will be demolished. That could rise to perhaps 10,000 because of homes being rendered unliveable by noise and air pollution. Two primary schools will be demolished, with perhaps two more being rendered unfit to teach in. The threat returns that we may have to dig up our relatives buried in the local cemetery. Where will my constituents find a home? Where will my constituents send their children to school? Where will we bury our dead? Does he appreciate the sense of betrayal that is felt in my community?

[Mr McLoughlin]

I know that the hon. Gentleman has spoken very sincerely about this on behalf of his constituents. However, he is prejudging the outcome of the report. The report has not said which option it has gone for. It has come forward with three shortlisted options and another option that will be looked at in the longer term. This is not a fait accompli. The commission’s work will continue over the next 18 months.

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

Bearing in mind that the recommendations of the Roskill commission on airport capacity were rejected by successive Governments, does my right hon. Friend accept that until the first concrete, and lots of it, is poured, uncertainty will not be removed from many of the locations that are mentioned by Sir Howard Davies today? To echo the sentiment of my right hon. Friend the Member for Chelmsford (Mr Burns), will my right hon. Friend work extremely hard to get bipartisan acceptance of the final recommendations?

[Mr McLoughlin]

Not only will I try to get bipartisan agreement, I will try to get tripartisan agreement. I shall not just look at any two parties. I hope that that is the way in which we can move forward. My right hon. Friend has huge experience of this issue and has often made the case for protecting Stansted airport.

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

The Davies commission report includes a shortlist that has on it the recommendation of the Transport Committee for expanding Heathrow, and confirms the importance of connecting the economy of this country with the emerging economies in India, Brazil and China. Does the Secretary of State agree that taking no action means that this country continues to lose out? When does he think the decision should be made?

[Mr McLoughlin]

I am sorry; I missed the last bit of the hon. Lady’s question. [Hon. Members: “When do you think the decision should be made?”] I know that the Transport Committee will be seeing Sir Howard at one of its meetings in the early part of January. I agree with the hon. Lady; we will be responding early next year to the recommendations on which Sir Howard has asked us to come to a view.

[Dr Julian Huppert (Cambridge) (LD)]

The Government was absolutely right to scrap Labour’s plans for a third runway at Heathrow. I very much welcomed the Prime Minister’s statement:

“No ifs. No buts. No third runway”.

I assume the Prime Minister meant it. What assurance can the Secretary of State provide that nothing will be done to breach the Committee on Climate Change recommendations?

--- Later in debate ---

[Mr McLoughlin]

It is important that everything that Sir Howard is looking at is contained within our climate change obligations. Aircraft are changing; their emissions are changing. What is very unenvironmentally friendly is stacking aircraft above London that are pumping out emissions into the atmosphere.

[Mr Alistair Darling (Edinburgh South West) (Lab)]

The Commission appears to be recommending another runway at Heathrow, which is exactly where we were 10 years ago. The proposal on Gatwick appears to be “in addition to” rather than “instead of” the proposal at Heathrow. I notice that the Secretary of State studiously avoided expressing an opinion and I understand that he wants to await the outcome of the commission. However, could he tell us whether or not the Government think that the commission is on the right track? Clearly if it is not, it would be better to tell it now, rather than wait until 2015. I join everyone in this House who believes that, 50 years after the Government first looked at what should happen to London airport, we need to make a decision, and we should do so as soon as possible. If we do not, we will fall behind the rest of the world.

[Mr McLoughlin]

I am always slightly cautious in the answers I give to the right hon. Gentleman, who has the distinguished record of being one of the longest-serving Transport Secretaries of recent times. I would point out, however, that when he was Secretary of State and the 2003 White Paper was published, there was only one mention of Dubai. Things have changed hugely in aviation over the last few years, which is why it was right to set up this commission. The right hon. Gentleman was wrong on his original assumption: Gatwick is an alternative—it is not necessarily a case of Heathrow and nothing else—as is the Thames estuary.

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

The commission report places great importance on the success of all the options it is still looking at through effective and integrated surface transport links. So much so that the commission, which I understand is carrying out, in the Secretary of State’s own words, work that merits the fullest consideration, now intends to examine the HS2 line and the possible HS2 spur to Heathrow. Surely the Government should now wait until this work is completed and the final decision on airport capacity is made before pressing ahead with a high-risk £50 billion project that might end up being built in quite the wrong place.

[Mr McLoughlin]

I refer my right hon. Friend to page 202 of the report. I thought that she would raise this issue, so I refer her to paragraph 6.94:

“A high speed rail spur from the main HS2 line to the airport is not included in the cost estimate, but the Commission will consider the case for this as part of its review of surface access options. It will not, however, consider the case for any re-routing of the main HS2 line.”

I believe that it is a vital part of the national infrastructure of the United Kingdom.

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

Is the Secretary of State aware that some of the UK’s leading companies have cut their flights by an average of 38% over the past three years, and does he not recognise that his reckless enthusiasm for new runways will not only cause huge harm for the local communities involved, but shows this Government lagging far behind progressive companies that understand the urgency of climate change and are reducing their number of flights on economic as well as environmental grounds?

[Mr McLoughlin]

The hon. Lady needs to look at the passenger numbers through the terminals. At Heathrow in 1992, for example, there were 45 million in comparison with 70 million in 2012. At Gatwick in 1992, passenger numbers were 19.9 million, but 34.2 million in 2012. People still want to travel. I am sure that the hon. Lady has holidays only in the United Kingdom and never travels abroad, but a lot of people like the option to go abroad.

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

Sir Howard reminds us that Heathrow is 100% full and Gatwick is 85% full. A new build of any kind anywhere is going to take an absolute minimum of 10 years and probably longer. We are losing business to Schiphol, Charles de Gaulle and Dubai now. We have to get to chapter five, paragraph 5.91 on page 163 before we find a paragraph that mentions other airports, and it is dismissive. Manston airport in Kent has the capacity—now, as we speak—to take business from Gatwick and Heathrow to release the capacity we need and to build in the time we need for the right decisions to be taken in the longer term. Will my right hon. Friend please look at it seriously?

[Mr McLoughlin]

The commission has looked at a number of options. I draw my hon. Friend’s attention to the conclusions on page 102, where it is made clear that the UK does not face an immediate capacity crisis. Sir Howard and the whole commission are clear that we need to take this decision so that we have the option of a new runway by 2030. That is exactly what we will be doing.

[Mr Andy Slaughter (Hammersmith) (Lab)]

For my constituents, today’s report is proof that the Heathrow lobby’s hold over the Conservative party never went away. The hands of the Prime Minister and the Chancellor are all over this report. One third of those seriously affected by airport noise in Europe live around Heathrow. What is the Secretary of State offering to the 2 million people in west London other than a continued deterioration in their quality of life by the expansion of Heathrow.

[Mr McLoughlin]

I remind the hon. Gentleman that he fought the election on the basis of a manifesto saying that there would be a third runway at Heathrow airport. Before he gets on his high horse about what I am doing, perhaps he should consider what that manifesto said. As I have said, the simple fact is that we need to do everything we can to alleviate noise problems; we need to look carefully at the eventual recommendations of the final report. We do not yet have the final recommendations; the time to conduct this type of debate is when we get them.

[Angie Bray (Ealing Central and Acton) (Con)]

My first impression is “so far, so depressing”. I know that this is only an interim report, but my constituents will note that Heathrow is yet again emerging as the favoured option. I should also say that the two options for Heathrow that are flagged up in the report will both be particularly bad news for my constituents in Ealing, Chiswick and Acton. Let me ask my right hon. Friend: what on earth more do my constituents have to do to get their message across that any expansion of the noise, pollution and congestion that goes with Heathrow and blights the whole of west London would simply be intolerable?

[Mr McLoughlin]

I am grateful to my hon. Friend, and I understand the passion that she and other Members feel about this issue. It is right for us to try to look at and address these issues. We have to see what is happening with aviation noise and how it should be judged. That is why I am very interested in some of the commission’s interim proposals. It will take longer to take a view on that, but I hope to be able to come back in the spring to announce the way forward. This is a very difficult job because these issues have been around for some time. It is right to conduct a proper investigation and, I hope, come up with the right alternative at the end of the day.

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

As Government after Government have ducked this issue, our main European competitors have built many runways, while our new competitors in the middle east have built even more of them. Does the Secretary of State agree that the only way to break this logjam is for both the major political parties represented in this Chamber to give a commitment to accept the conclusions of the Davies report?

[Mr McLoughlin]

I agree with the hon. Gentleman, who served for a long time on the Transport Select Committee. I certainly agree with him that it would be good if we could reach a consensus on this matter. Whatever option we come up with will impact on people’s lives and communities. We need to try to do everything we can to address and relieve it, but we also need to look at the options for the longer-term future offered by quieter aeroplanes, for example. An overall consensus would indeed be the best way to move forward on big infrastructure projects.

[Mr Crispin Blunt (Reigate) (Con)]

My right hon. Friend has repeatedly used the phrase “longer term” both in his statement and in replying to questions. The exam question to the commission was how the UK’s status as a leading global aviation hub could be maintained. By any standards on a long-term basis, the commission has failed. Its principal options simply cannot sustain the UK’s position as a long-term hub. The only hope remains the Isle of Grain option. When it comes to consideration of Gatwick, for example, someone will need to explain that doing up Gatwick station will not deal with the capacity issue on the Brighton main line or with the road issues. Someone will also have to explain where a town the size of Crawley is going to be placed.

[Mr McLoughlin]

My hon. Friend has just dismissed two options, but no doubt other hon. Members who may be called to speak a little later will dismiss the third option, which my hon. Friend refers to as the “only” option available. That is why we set up a commission—so that we could base our final decisions on proper researched evidence.

[Jack Dromey (Birmingham, Erdington) (Lab)]

The chief executive of Birmingham airport, Paul Kehoe, has described the Davies report today as focusing disproportionately on the south-east and entrenching the dominance of the south-east economy to the detriment of growth in the rest of the UK. The Birmingham chamber of commerce has said the same thing. Does the Secretary of State recognise that, in circumstances where Birmingham wants the expansion of its airport, which will be key to economic growth in the midlands, Britain simply cannot succeed through London and the south-east alone?

[Mr McLoughlin]

I am a passionate believer in the role of airports outside London. The first time I appeared before the Select Committee, I said that we should stop describing airports such as Birmingham and Manchester as regional airports, because they are major international airports in their own right. I want to see those airports—along with East Midlands airport—serving their local communities. On page 195 of its report, the commission says that it does not see

“a strong case for expansion at Birmingham”

at the moment, but that may well change by 2050. Moreover, being served directly by HS2 will give the airport a great opportunity for the future.

[Annette Brooke (Mid Dorset and North Poole) (LD)]

Will there be an independent assessment of the impact of any proposals on the carbon emission targets of the Committee on Climate Change?

[Mr McLoughlin]

The commission is taking all our carbon reduction obligations into account, as I would expect.

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

At the last general election, both coalition parties opposed an increase in runway capacity in the south-east. I think it is clear that the Conservatives have now realised that that was the wrong decision and have changed their minds, but the Liberal Democrats are still in denial. Most of us want the Davies commission to report earlier than the summer of 2015. Who set the deadline—the Secretary of State, Sir Howard, or the Liberal Democrats?

[Mr McLoughlin]

I note that the hon. Gentleman is now speaking from the Back Benches about a subject on which he used to speak from the Front Bench. When he was on the Front Bench, I challenged him to tell us, if his was such an easy solution, what proposals he would support. He was unable to answer that question from the Front Bench, but perhaps he will be able to do so from his more privileged position on the Back Benches.

[Zac Goldsmith (Richmond Park) (Con)]

I note the answer that the Secretary of State has just given, but does he not accept that no serious political party can go into the next general election without a clear opinion on an issue that matters to so many people and so many businesses in this country? That is simply not a credible position for any party to have.

[Mr McLoughlin]

I know my hon. Friend’s views on this matter, and I know that he fights passionately on behalf of his constituents. However, I think it right for us to try to obtain an answer that is, as far as possible, based on good evidence and good research. That is what the commission is doing, and it will report by the summer of 2015.

[Phil Wilson (Sedgefield) (Lab)]

According to the Davies report, London continues to accommodate the largest overseas destination market in the world. What more can be done to enable regional airports such as Durham Tees Valley airport, which is in my constituency, to have access to that market by ensuring that it is given Heathrow slots sooner rather than later? May I also ask the Secretary of State to discuss with his colleagues in the Treasury the possibility of varying the levels of air passenger duty around the country, which would help all United Kingdom airports?

[Mr McLoughlin]

I think that the biggest increases in APD occurred under the last Government rather than this one. At a time when we are trying to reduce the deficit, it is always easy to find ways of making cuts, but we must then find a replacement for that certain income. As for the hon. Gentleman’s question about regional airports, I remind him of what I said a few moments ago about their importance to local communities.

[Jason McCartney (Colne Valley) (Con)]

Does my right hon. Friend agree that the provision of more long-haul services from, for instance, Manchester airport, and Leeds Bradford International airport—which my constituents use—to China, India and the other emerging markets would help to ease all the congestion at London’s airports? Could that not be part of the solution?

[Mr McLoughlin]

It might play a role in easing some of the congestion, but the overall evidence shows that there is continuing growth in aviation traffic, and the commission is giving that careful consideration.

[Gemma Doyle (West Dunbartonshire) (Lab/Co-op)]

Will the Secretary of State consider seriously the issue of connectivity throughout the United Kingdom, particularly in relation to Scotland? Connections to the south-east are extremely important, and if we do not get a move on, we shall be in danger of strangling growth throughout the UK.

[Mr McLoughlin]

I understand exactly where the hon. Lady is coming from. Concern has been expressed in a number of regions about the accessibility of London. However, people could consider using other airports, such as Luton and Stansted.

[Sir Edward Leigh (Gainsborough) (Con)]

Do the Government accept the commission’s contention that a new runway needs to be built in the south-east before, or by, 2030?

[Mr McLoughlin]

I believe that what the commission has said is important, but we must await its final proposals and establish whether we can work to that deadline.

[Jim Shannon (Strangford) (DUP)]

Let me first thank the Secretary of State for his statement. He described the United Kingdom as an international aviation hub. What discussions has he had with representatives of Belfast City, Belfast International and City of Derry airports in Northern Ireland to ensure that the viable transport links to which he referred can be solidified and all regions can benefit from them?

[Mr McLoughlin]

Having responded to questions from the Northern Ireland Affairs Committee, I am well aware of the importance to Northern Ireland of its connections with London. I have had no direct conversations with the Northern Ireland Assembly, but I have of course listened to what colleagues in the House of Commons have had to say.

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

I commend the Howard Davies commission for recognising that the Isle of Grain cannot be lightly dismissed and merits further consideration. However, he said this morning, when comparing it with the other proposals, that the Thames estuary proposal was

“a much more extensive proposition for shifting the economic geography of the south-east of England by creating a new pole of economic development.”

Is that within the remit of the commission?

[Mr McLoughlin]

I should make it clear that by “he said”, my hon. Friend meant what Sir Howard Davies had said, rather than any words that I might have said.

The commission must look at the whole proposal, and it has said that it will do so, because it is completely different from the proposals that certain airports have been making themselves. The matter will be addressed in the report which Sir Howard has said he hopes to produce by next summer.

[Ms Gisela Stuart (Birmingham, Edgbaston) (Lab)]

I am not sure that I derive much comfort from the information that the expansion of Birmingham airport may be decided in 2050, by which time I shall be 95 years old. May I suggest something that the Secretary of State could do now? He could compel Network Rail to come up with a strategy to improve surface access to airports, so that those such as Birmingham which have spare capacity can be properly connected?

[Mr McLoughlin]

I am not sure that I wish to comment on the first part of the hon. Lady’s question—it might not be the thing to do from the Dispatch Box—but I will say that I know Birmingham airport very well, having used it on a number of occasions. It is not badly connected at present, but there is room for improvements, and I naturally want to think about ways of making those improvements. I believe that the direct connection between HS2 and Birmingham airport will give it the potential to develop in that way.

[Mr Speaker]

Order. The Chair must be very careful when it comes to these matters, but I must say that I found the age-related facet of the hon. Lady’s question utterly implausible.

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

A suppressed Cabinet Office report on HS2 raises major concerns about its risky construction timetable, its poor management and the insufficient work done on costs, and also questions the capability of those involved in the delivery of the project. Will my right hon. Friend tell us whether the Government are prepared to publish the report by the Major Projects Authority?

[Mr McLoughlin]

I do not think that there is any shortage of reports on HS2, be they from the National Audit Office, from the Transport Committee, or in the form of evidence given to the Treasury Committee. There is a huge number of such reports that people can consult rather than consulting a report that is more than two years old.

[Ian Austin (Dudley North) (Lab)]

Birmingham airport is right in the middle of the country and right next to the major motorways of the United Kingdom, and, with HS2, it will be within easy reach of the vast majority of the people who live in Britain. People living in the west midlands will be utterly staggered to learn that they must wait until 2050 for any consideration to be given to its expansion.

[Mr McLoughlin]

It is not a case of waiting until 2050 for any consideration of that airport’s expansion; what I said, and what the report said, is that there will be a need for a new runway in the south-east by 2030 and then probably for another runway in 2050, and at that stage that airport could be one of the considerations. But a huge amount is still going on at Birmingham airport. I am not going to talk that airport down now, and I do not want anyone else to do so. It has extended its runway and has a lot more availability, and I want it to be able to prosper, along the lines that other airports, such as Manchester, have done.

[Michael Fabricant (Lichfield) (Con)]

I very much agree with the comments made by the Chairman of the Transport Committee that the current situation is an option that cannot go on for much longer, but I also agree with comments made by Opposition Members about the connectivity with Birmingham. Given that senior engineers in HS2 doubt the efficiency, cost and environmental suitability of the route, would it not make sense to link HS2 directly not only from Birmingham to central London, but to whichever airport is chosen to have that third runway?

[Mr McLoughlin]

I am not sure which people in HS2 my hon. Friend is referring to when he says that they are opposed to the current route. We are committed to that route and have deposited the Bill before the House.

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

There is a widespread feeling that the airports issue is symptomatic of this country’s poor approach to long-term infrastructure planning. Clearly there will be winners and losers whichever decision is made, but the truth is that a decision will still need to be made. If we need two runways by 2050, will the Government make a provisional decision on both, thus finally bringing some long-term certainty to this issue?

[Mr McLoughlin]

I am not sure that we will make a decision on both of them in one go. As I say, the report is very clear: we will need an additional runway by 2030 and, in all likelihood, another by 2050. A number of things will have changed by then, so it would be wrong at this stage to start saying exactly what the runway beyond the next runway will be, because the infrastructure I have talked about, such as HS2, will be in place and other airports will come much more into play.

[Karen Lumley (Redditch) (Con)]

The Government are determined to build HS2, rebalance our economy and make Birmingham airport 38 minutes from London Euston. Does the Secretary of State share my concern and disappointment today that Birmingham airport was not included in the initial recommendations?

[Mr McLoughlin]

What I am seeing, and what I see nearly everywhere I go, is a strong lobbying exercise, or representation exercise, on behalf of Birmingham airport, and rightly so because it is a very good airport—I like it and use it regularly. What Birmingham has already done, through its expansion and extending the runway, means that it will be able to offer lots more services to the people of the west midlands, and I very much hope to take advantage of that.

[Chris Bryant (Rhondda) (Lab)]

Will most ordinary people listening to this debate not conclude that a politician who cannot make a decision is no more use than a chocolate teapot? If we are going to keep on procrastinating and if the Government cannot even decide that Boris island is not going to float, they have run out of steam.

[Mr McLoughlin]

Coming from somebody who was 13 years in a Government who refused to make—[Interruption.] The hon. Gentleman was 13 years in Parliament supporting a Government—avidly, on every occasion—who continually failed to take any decisions about major infrastructure projects, yet he now complains that this Government, who have made more progress on the railways and on aviation, are somehow slacking in making their decision.

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

Heathrow is crucial to the continued economic vibrancy of towns such as Reading and to foreign inward investment into the Thames Valley region. Airport capacity does need to expand, but so, too, does surface access to Heathrow. Will my right hon. Friend ensure that the Heathrow rail link to Reading and from the west is immediately brought forward from the 2021 timeline currently in progress?

[Mr McLoughlin]

My hon. Friend is a very big advocate of more infrastructure investment in Reading, where we are currently spending some £880 million on a major refurbishment of Reading station, which will greatly enhance the capabilities for surface access to Reading. However, I note his early applications for even more investment in his area.

[Paul Goggins (Wythenshawe and Sale East) (Lab)]

One issue that merits greater consideration than the half page given by the commission is the proposal for a temporary exemption from air passenger duty for new long-haul routes from airports outside London. Such an exemption would help airports such as Manchester to develop new routes to China. Will the Secretary of State make sure that this idea stays on the table?

[Mr McLoughlin]

The right hon. Gentleman, by his mentioning the proposal, has just done exactly that.

[Mrs Caroline Spelman (Meriden) (Con)]

The Davies report states that expansion at Birmingham airport would have a “relatively high” noise impact compared with the alternatives, but ironically a second runway would have taken the noise further way from areas of habitation. Will the Secretary of State look also at the road surface access to the existing extended runway, as that can currently be a source of gridlock at a very important transport node?

[Mr McLoughlin]

I will of course look at that important issue, as my right hon. Friend asks. Her constituency is very much affected by the entire road network around that area, and by the rail and airport expansion, so I will look seriously at the point she raises.

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

On the Network Rail statement, given the way in which responsibilities for rail services in Scotland are divided between the Scottish and UK Governments, how will responsibility for the net debt of £30 billion or its servicing be divided between those Governments?

[Mr McLoughlin]

I will write to the hon. Gentleman about that.

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

I congratulate my right hon. Friend on coming to the House to make a statement on an interim report. I am delighted to hear him confirm that the Government have no set position on this matter, but I am sure he will be reassured to know that people in Hillingdon, including my honourable comrade, the hon. Member for Hayes and Harlington (John McDonnell), will be dusting off the campaign material and once again proving that any expansion at Heathrow is politically and environmentally undeliverable.

[Mr McLoughlin]

My right hon. Friend and the hon. Gentleman will be a formidable team in their campaigning approach to this matter. I know they will do so, but I also urge them to submit their views to the commission as it moves to its next phase in preparing its final report.

[Ian Lucas (Wrexham) (Lab)]

The Aerospace Growth Partnership, with strong environmental safeguards, is supported by all three main parties—even the Liberal Democrats have signed up. My hon. Friend the Member for Blackley and Broughton (Graham Stringer) made the good suggestion that all three parties should commit to the outcome reached by the Davies inquiry. Will the Secretary of State explore that with all main parties?

[Mr McLoughlin]

Yes.

[Lorely Burt (Solihull) (LD)]

I thought that Sir Howard’s remit was to examine the need for aviation provision for the whole UK economy, so does my right hon. Friend share my disappointment that he seems focused on the self-fulfilling prophecy that growth feeds further demand in the south-east? Does my right hon. Friend share my wish for further consideration to be given to growth in resurgent economies, and, thus, to Birmingham international airport, for the midlands, and to other regional airports and economies?

[Mr McLoughlin]

The commission has had to work on the basis of what is actually happening in aviation: Heathrow has 99% usage and Gatwick is also filling up, but other airports in London are not as busy at the moment. So it is right that the commission has done the overall work and the proper work, and has made an interim suggestion. The Davies commission does also talk about the importance of regional airports, and nobody is denying that; I would much prefer more services to be available for people so that they would not necessarily have to travel into London to use an airport of demand. However, the availability of services does attract a lot of passengers to airports in the south-east.

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

New airport capacity must go hand in hand with our efforts to reduce CO₂ omissions from aviation, as the Secretary of State mentioned in his statement. Given that his Government abandoned the UK’s target to be at or below 2005 levels by 2050, what guarantees can he give to the House to ensure that those considerations are included in the final plans?

[Mr McLoughlin]

If the hon. Gentleman takes time to reflect and to look at the various appointments to the commission, he will see that we have taken incredibly seriously the environment and our environmental commitments.

[Martin Vickers (Cleethorpes) (Con)]

I invite my right hon. Friend to expand a little on the role of regional airports. Will he give an assurance that the Government will recognise the important role that smaller regional airports can play, not just in easing the burden on traffic to the south-east but in providing economic growth to areas such as the Humber region?

[Mr McLoughlin]

I cannot add very much to what I have said already. I agree with my hon. Friend, but it is difficult for some regional airports to attract new services. That is one of the big changes that we have seen as far as the aviation industry is concerned, and I am keen to do anything I can to encourage those regional airports to be able to provide more services.

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

In that regard, Birmingham could cater for two thirds of the projected passenger increase from building a new runway at Heathrow at less than 2% of the £6 billion cost, without the need to demolish schools, villages or homes. Why are those considerations not worthy to be looked at now?

[Mr McLoughlin]

Those considerations were looked at by the commission, and there is someone on the commission who works in Birmingham.

[Several hon. Members]

rose—

--- Later in debate ---

[Mr McLoughlin]

My hon. Friend is absolutely right. One thing that causes too much pollution is stacking aircraft. Through better traffic management and longer traffic management of aircraft, a lot has been done to improve the flows into airports so that there is orderly access and entry into Heathrow, but more work can be done on that. That is one of the interim recommendations of the commission.

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

In his statement, the Secretary of State rightly described the increase in airport capacity in the south-east as the “engine for growth”. The same applies in south Wales. Will he directly engage with the Welsh Government on how Cardiff airport can develop its services so that it can play its part in both UK and regional growth?

[Mr McLoughlin]

That matter is now in the domain of the Welsh Assembly. I am due to meet its Transport Minister, who will no doubt want to discuss the issue, some time in the new year.

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

Can the Mayor of London expect any Government money to promote his imaginative proposal, and if so, could we also have some in Medway? Given that the page numbers in the Secretary of State’s report are different from those I got from the commission, can he shed any light on the late change in the report to include a Grain option and tell us whether meetings with the Prime Minister and the Chancellor last week played any part in that?

[Mr McLoughlin]

It is true that my report did not come off a PDF document, but I am not sure whether the page numbers differ from those in the report received by my hon. Friend. How the Mayor of London spends the considerable amounts of money that he has at his disposal is a matter for him.

[Jessica Lee (Erewash) (Con)]

Does my right hon. Friend agree that within these important considerations about aviation expansion fits the complementary issue of supporting nationwide infrastructure? With that in mind, will he assure the House that Ilkeston train station is on target for opening at the end of 2014? Such news will perhaps bring a bit of extra festive cheer to the good people of Erewash.

[Mr McLoughlin]

I assure my hon. Friend that everything I have said about Network Rail and its reclassification will have no impact on the courageous campaign that she has mounted to get a railway station open in Ilkeston by next December. When I was in Ilkeston recently, it was suggested to me that it should be called not Ilkeston station but Jessica’s junction.

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

I welcome the recommendation in the Davies commission on the use of existing airport capacity, particularly the reiteration of the support for Birmingham gateway. Does the Secretary of State share my disappointment that the commission has not been bolder in looking at Birmingham airport as a long-term solution? If we are considering options in London and the south-east, would it not have made more sense to have a credible option outside the area, because it could have a transformative effect on the west midlands economy?

--- Later in debate ---

[Mr McLoughlin]

I am pleased to see the Birmingham lobbying exercise spread across the whole of the west midlands. There is clearly a united front on the matter. I know that Sir Howard will look at the exchanges today, but there is nothing to stop Birmingham airport expanding; indeed, I encourage that. At the moment, the airport is not utilised to its full capabilities. Many more services can be provided from Birmingham now that the extension of the airport has been completed.

[Stuart Andrew (Pudsey) (Con)]

The aviation White Paper in 2003 stated that expansion of Leeds Bradford airport would need surface access improvements, yet we have seen very few. In this report, chapter 5 makes specific reference to surface access to other airports and recommends that the Government work with local authorities to ensure that such improvements take place. Will the Secretary of State make sure that Leeds Bradford airport will be looked at, because my constituents have to suffer many people going past their homes on very overcrowded roads?

[Mr McLoughlin]

Following my hon. Friend’s representations, I am delighted to give him the assurances that he requires. I will also come to his constituency and look at the situation there.

[Jackie Doyle-Price (Thurrock) (Con)]

The Mayor of London claims that Heathrow is a planning error. It is not; it is our hub airport. As my right hon. Friend is well aware, the Thames estuary is home to some significant ports infrastructure. Is it not to be hoped that the Davies commission rules out, once and for all, a Thames estuary airport, particularly as we already have an excellent airport at Southend?

[Mr McLoughlin]

As I have said to various colleagues, everyone will have an opinion if they have something in their own localities. I will await the outcome of the commission’s report, but I take what my hon. Friend has said seriously.

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

Let us forget Birmingham and Leeds Bradford and get back to Manchester. Given that Heathrow is already operating at full capacity and it is likely to be years before any option being considered by the Davies commission is built, may I ask my right hon. Friend what steps he is taking to encourage greater use of these regional airports—or major international airports as he calls them? May I suggest that a useful and popular first step would be to reduce airport passenger duty for new long-haul flights from regional airports, which would not cost the Treasury anything because they do not exist at the moment?

[Mr McLoughlin]

I am always keen to hear about schemes that cost no money whatever. Colleagues often convince me of a scheme but, unfortunately, when I go to the Treasury the idea is usually dismissed in fairly short terms. None the less, I understand my hon. Friend’s point. The truth is that Manchester has expanded and is, without any doubt, now a major international airport. I am just sorry that no one has mentioned East Midlands airport, which is also owned by Manchester airport.

[Neil Carmichael (Stroud) (Con)]

Forty years ago, a Labour Government cancelled the Maplin airport project, thus creating the situation we now have with under-capacity. Now that we have a second chance to get this right, does the Secretary of State agree that any report from Sir Howard’s commission should include a proper analysis of the advantages of a new airport east of London?

[Mr McLoughlin]

As I have said and as Sir Howard has been at pains to say in his statements today, if this was an easy decision it would have been taken some time ago. It is not an easy decision to take. It is right that we should consider all the facts and our environmental commitments, too, and that is the work that the commission has embarked on.

[Robert Halfon (Harlow) (Con)]

Will my right hon. Friend commend the Manchester Airports Group for its new stewardship of Stansted airport? Although I note that the report suggests that an extra runway is environmentally unsustainable and economically unviable, it also considers the expansion of the existing runway. If that happens, will my right hon. Friend ensure that the Government invest in the infrastructure on the M11 and the railways and ensure that local people are employed to help with the extra expansion?

[Mr McLoughlin]

I certainly commend Manchester Airports Group for how they have taken over Stansted and I hope that they will continue the public engagement with people from around the area. At the moment, it is estimated that there is room for growth at Stansted without any extra runway capacity. My hon. Friend makes the point about how important airports are for jobs and for giving people opportunities.

[Mr Philip Hollobone (Kettering) (Con)]

Given the crucial role that Network Rail plays in the provision of Britain’s transport infrastructure, not least at the moment through the necessary but highly disruptive work in Kettering in preparation for the welcome electrification of the midland main line, does my right hon. Friend think that it is as efficient as it might be in providing Britain’s railway infrastructure and does he regard its extraordinary and expensive corporate structure as fit for purpose?

[Mr McLoughlin]

As I announced in my statement, Network Rail has been reclassified and is charged with some important projects. My hon. Friend refers to the electrification of the line that serves both his constituency and mine, but I would also point out the big infrastructure jobs that Network Rail has undertaken, such as the closure for six weeks in the summer of Nottingham station and the complete resignalling in that area. That project came in under budget. The projects are very big and, obviously, certain consequences will flow from the changes. It is vital that there is no question but that the huge investment we have committed to Network Rail will be delivered over the next five years.

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

The Secretary of State will be aware of the comments made by Sir Howard Davies, who said that the estuary airport would cost about £80 billion to £110 billion and would cause massive disruption. Do the Government have that amount of money to spend when there are other, better, environmentally friendly options? Those views are shared by my constituents in Gillingham and Rainham and the local authority, Medway council. They are bitterly opposed to that bizarre idea on those grounds and many others.

[Mr McLoughlin]

One thing that will have to be considered if such proposals are made is how they will be paid for. I am, however, aware that figures for transport infrastructure projects sometimes get greatly inflated. This one started off at about £75 billion, it has grown to £100 billion, my hon. Friend says that it is £110 billion and I have no doubt that by next week it will be around the £150 billion mark.

[Mark Garnier (Wyre Forest) (Con)]

In his statement, my right hon. Friend said that he is seeking political consensus on both sides of the House. By now, he will no doubt have gathered that there is practically political unanimity behind Birmingham airport. Is not the important point that rebalancing the economy of the UK is about not just regions but sectors? Significant expansion at Birmingham would rebalance the economy not just out of the south-east but away from the service sector, supporting our industrial heartlands in the midlands.

[Mr McLoughlin]

My hon. Friend makes yet another representation from the Birmingham grouping—[Interruption.] The Birmingham mafia, as Members say. As he knows, there is nothing to stop Birmingham airport expanding significantly. There is spare capacity there at the moment and it has to attract carriers in to the airport. I am keen to see it do that and for that to become available to the whole of the west midlands.

[Mr Marcus Jones (Nuneaton) (Con)]

The west midlands is one of the only regions to have a positive balance of trade. The Government want to build on that rebalancing by investing in HS2. To properly integrate our transport infrastructure, does my right hon. Friend not agree that the future development of Birmingham international airport should feature far more heavily in the final Davies report than it does in the interim one?

[Mr McLoughlin]

I do not know whether I have been kiboshed as far as Birmingham is concerned, but my hon. Friends on both sides of the House have made clear to me how important they consider the airport to be. There is nothing to stop the expansion of Birmingham airport. It has done a lot to increase capacity and I hope that more services can be attracted to Birmingham.

Network Rail

Lord McLoughlin Excerpts

Tuesday 17th December 2013 Written Statements

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

Today the Office for National Statistics announced that, following a review, Network Rail will be classified as a central Government body in the public sector. This is an independent statistical decision taken by the Office for National Statistics in light of the European system of national accounts 2010 (ESA10) manual from Eurostat which comes into force across the EU from 1 September 2014.

The Government welcome the ONS review and have always been committed to the transparent reporting of public liabilities. The change in Network Rail’s classification will mean that the company’s net debt, currently some £30 billion, will appear on the Government’s balance sheet. The Office for Budget Responsibility noted in its “Economic and fiscal outlook” published on 5 December, that this will likely increase public sector net debt by about 2% of GDP and public sector net borrowing by 0.2% of GDP on average. The Government remain committed to their plans to reduce the deficit and will continue to do so by taking difficult decisions to cut public spending and prioritise investment in infrastructure to deliver a stronger economy and fairer society. The new classification will be implemented from 1 September 2014 and will apply from April 2004. Until then Network Rail remains in the private sector.

I am committed to ensuring that Network Rail maintains the operational flexibility to continue to deliver a safe, punctual rail network and increased capacity for our busy railways and that it is able to attract a high calibre of staff, while still providing value for money and being accountable to Parliament.

My Department will agree appropriate accounting and governance adjustments for Network Rail to ensure it can continue to deliver world-class railway infrastructure when the company is reclassified for statistical purposes on 1 September 2014. I have accordingly agreed a memorandum of understanding with Network Rail that sets out how we will work together to develop and agree that framework. This memorandum has today been published on my Department’s website and copies have been placed in the Libraries of both Houses.

This Government remain committed to the railway. The ONS decision on the classification of Network Rail does not affect the planned improvement and investment in the railways, including Network Rail’s £38 billion settlement for the planned running of and investment in the railway in the five years from 2014. This Government’s plans for HS2 and the rail franchising programme set out in March this year are unchanged. The Office of Rail Regulation will remain the economic and safety regulator for the railway and the ONS decision will have no effect on rail fares, performance, punctuality, timetables, or safety. My Department will continue to consider how to best secure the benefits of private investment in rail infrastructure and work with Network Rail to deliver the best possible railway for the benefit of the whole industry, its passengers, and the taxpayer.

Lower Thames Crossing

Lord McLoughlin Excerpts

Thursday 12th December 2013 Written Statements

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

On 21 May 2013, Official Report, column 74WS, the Department for Transport announced the launch of a public consultation on “Options for a New Lower Thames Crossing”. The consultation document set out the case for additional road-based river crossing capacity in the lower Thames area and the relative merits of three potential locations with one variant. It invited views on where to locate a new crossing.

The three options on which we consulted were:

Option A—at the site of the existing A282 Dartford-Thurrock river crossing;

Option B—connecting the A2 with the A1089; and

Option C—connecting the M2 with the A13 and the M25 between junctions 29 and 30.

Option C—variant: additionally widening the A229 between the M2 and M20.

The consultation closed on 16 July 2013.

I am pleased to announce this consultation resulted in a very good response. We received more than 5,700 consultation responses expressing a range of opinions. These have been analysed and I am publishing a report on the consultation on the Government website. A copy of the report will also be placed in the Libraries of both Houses.

Respondents raised a number of important points, which deserve due attention. At the same time we are committed to reaching a decision on location as speedily and effectively as possible.

The Department’s review of options showed that option B has the weakest case. Consultation feedback has additionally shown that option B receives limited support and instead raises serious concerns that it would jeopardise major redevelopment of the Swanscombe peninsula, a key part of the growth strategy for the Thames gateway area. A number of stakeholders have urged me to discard this option as swiftly as possible.

I have therefore decided that there are sufficient grounds to discard option B and that Government should focus on the choice between options A and C. The consultation evidence has persuaded me that this decision is one that has far reaching consequences for local people and users of the crossing. It is therefore not a decision to be taken lightly.

To assist Government in considering the consultation feedback and weigh up the relative merits of options A and C I am obtaining further advice on:

Potential scale of further improvements which may be required on the M25 and A13;

Potential implications for air quality in terms of compliance with national and European targets;

Potential scale of mitigation relating to possible impacts on protected habitats.

I will make a further announcement regarding the consideration of options A and C as soon as possible. This need not delay the delivery of the crossing as development of the remaining options continues.

In the meantime, we remain committed to introducing free flow charging at the Dartford-Thurrock crossing by October 2014. This will help alleviate congestion on the crossing in the short term.

Christopher Irwin (Indemnification)

Lord McLoughlin Excerpts

Tuesday 3rd December 2013 Written Statements

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

The Government have decided to indemnify Mr Christopher Irwin, head of the UK delegation to the Channel Tunnel Intergovernmental Commission (IGC) for damages and legal costs incurred in the exercise of his functions in relation to liabilities incurred or proceedings brought in any jurisdiction, whether in the United Kingdom, France, or anywhere else in Europe or in the world. This will cover legal representation, costs and civil liabilities.

A departmental minute providing full detail of the indemnity and the reasons for it has been laid in the House of Commons today.

The contractual position of Christopher Irwin is complex. This is due to the dual role of the IGC, as representative of the British and French Governments and independent regulator under EU law. Chris is appointed by me but, under a memorandum of understanding (MoU) with the Office of Rail Regulation (ORR), the independent regulator, I must consult the ORR first. The head of the UK delegation can be dismissed by me, but the MoU restricts my ability to do so to a limited number of cases where he would clearly not be fit to act. Under the MoU, the head of delegation is remunerated by the ORR, but his remuneration comes from the money that the concessionaires of the tunnel (Eurotunnel) are required, under the concession, to pay towards the IGC’s expenses. Chris’s contract is with the ORR—his letter and terms of appointment characterise him not as an employee but as an individual providing services to ORR. He is remunerated on a fees for service basis.

I consider that it is only right and proper for Chris to be afforded an indemnity similar to that enjoyed by senior civil servants—SCS employees—in the course of their duties; given that Chris is an appointee of mine, even though, in order to protect his independence, the ORR “hosts” him.

The terms of the indemnity follows the precedents set for managing public money as well as the civil service management code.

The Treasury has approved the proposal in principle. If, during the period of 14 parliamentary sitting days beginning on the date on which this minute was laid before Parliament, a Member signifies an objection by giving notice of a parliamentary question or by otherwise raising the matter in Parliament, final approval to proceed with incurring the liability will be withheld pending an examination of the objection.

High Speed Rail (London - West Midlands) Bill

Lord McLoughlin Excerpts

Monday 25th November 2013 Written Statements

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

Later today the High Speed Rail (London - West Midlands) Bill will receive its First Reading. This is a significant step forward in the Government’s strategy for a high-speed rail network that will address the critical capacity constraints that we face and improve connectivity between our great cities. This is vital to ensure that the country is equipped to compete economically in the 21st century.

The Bill includes the powers necessary to construct and operate phase 1 of HS2 between London and the west midlands. Alongside the Bill I will also be publishing several other related documents.

As required by Standing Orders I will publish an environmental statement (ES) alongside the Bill. This ES describes the railway, the alternatives considered to it, the significant environmental effects that are likely to arise from its construction and operation, and the measures proposed to avoid or reduce these effects. It has been informed by the consultation on the draft environmental statement held earlier this year and includes HS2 Ltd’s response to that consultation.

Following publication of the ES a public consultation will be held that will close on 24 January 2014. A report summarising the responses will be produced by an independent assessor appointed by the House authorities.

I will also publish the Command Paper “The Government response to the HS2 Design Refinement Consultation”. In October I announced my decisions in relation to the proposals for tunnels at Northolt and Bromford, and this document sets out my decisions in relation to the remaining 12 design proposals that were consulted on between May and July this year.

I will also publish two Command Papers addressing issues outstanding from the October 2012 property and compensation consultation. “HS2 Property and Compensation for London-West Midlands Decision document—Impact on Social Rented Housing” sets out the Government’s approach to the replacement of lost social rented housing. It affirms our commitment to working with key stakeholders in order to ensure that where social rented housing is lost as a result of HS2, it is replaced in a manner sympathetic to local needs and reflective of the relevant local authority’s strategy for social housing.

“HS2 Property and Compensation for London-West Midlands Decision document—Properties above Tunnels” addresses our policies relating to properties above tunnels and other underground excavations, providing clarity and reassurance for property owners and the wider market.

Copies of these Command Papers and the ES will be placed in the Libraries of both Houses. The documents can also be found on: www.gov.uk/dft.

Airport Security Scanners

Lord McLoughlin Excerpts

Thursday 21st November 2013 Written Statements

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

Security scanners are currently in operation at 10 of the UK’s largest airports. They were deployed in response to the threat to aviation posed by non-metallic improvised explosive devices, such as the device used in the attack on Northwest Flight 253 from Amsterdam Schiphol to Detroit on Christmas day 2009, and the device recovered in Yemen in spring 2012. These devices were designed to make detection by existing screening methods extremely difficult. More broadly, the UK threat level remains at substantial: an attack is a strong possibility.

It is for these reasons that, after careful consideration, I have decided that a further 11 airports will be required to deploy security scanners, and I will be issuing directions to that effect to the following airports:

Oral Answers to Questions

Lord McLoughlin Excerpts

Thursday 7th November 2013 Commons Chamber

[Michael Fabricant (Lichfield) (Con)]

2. What procedures are available to communities to seek mitigation of the effects of the High Speed 2 route with respect to visual, aural and vibration disturbance.

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

There has already been widespread consultation on phase 1. In addition, there will be a consultation on the environmental statement following the deposit of the hybrid Bill and the opportunity to petition the Select Committee established as part of the hybrid Bill process. For phase 2, the route consultation is currently under way and is due to end in January 2014.

[Michael Fabricant]

A few months ago, I and a group of people from Lichfield came to see the Secretary of State to discuss the monstrous 20-metre high viaduct planned for the HS2 crossing over Lichfield. He will know that this affects not only Lichfield, but the constituencies of my hon. Friends the Members for Tamworth (Christopher Pincher) and for Stafford (Jeremy Lefroy), because of the height of the line. A plan for mitigation was developed together with HS2 engineers, and this has been completely ignored. When can we have some hope that there will be any mitigation for us in Staffordshire?

[Mr McLoughlin]

I am grateful to my hon. Friend. He rightly says that he never loses an opportunity to make clear his objection to this viaduct. It was part of a route realignment which was done initially to help mitigate some of the effects around Lichfield, but once the Bill is deposited and following Second Reading there will, of course, be an opportunity for those directly affected to petition the Select Committee.

[Stephen Timms (East Ham) (Lab)]

Does the Secretary of State know of any other countries which, on building their second high-speed railway line, have chosen to connect it to the first via a single-track railway line with a capacity of three trains per hour?

[Mr McLoughlin]

The important thing is that there will be a connection between HS1 and HS2. That will allow direct access for trips right through Europe from places that at present do not have those connections. That is important. We believe the three trains per hour that will be able to go directly from Birmingham, Manchester or Leeds to Paris or Brussels or other European destinations is a very positive move.

[Jeremy Lefroy (Stafford) (Con)]

As my right hon. Friend knows, the preferred route for HS2 phase 2 goes straight through the village of Hopton in my constituency, as well as Ingestre, Yarlet and Marston and close by to Great Harwood. What measures can HS2 take to mitigate the effects on these communities, either through extra tunnelling or realignment of the route?

[Mr McLoughlin]

What I said to my hon. Friend the Member for Lichfield (Michael Fabricant) in my original answer was that the consultation for phase 2 is still ongoing and it would be wrong of me at this stage to pre-empt it. I know that my hon. Friend the Member for Stafford (Jeremy Lefroy) will be making strong representations through the consultation process, and I will consider them in due course.

[Christopher Pincher (Tamworth) (Con)]

Pursuant to the question asked by my hon. Friend the Member for Lichfield (Michael Fabricant), I know that the Secretary of State takes these matters very seriously, but does he agree that where mitigations are small scale, such as those proposed by my constituents in the Knox Grave Lane community, HS2 should be able to move ahead with them quickly and not give conflicting messages to the community affected? I have written to him on this matter. Will he give the letter careful consideration?

[Mr McLoughlin]

Of course I will consider any points that my hon. Friend has written to me about. Consistency in HS2’s responses on these lines that directly affect people is very important. I am disturbed to hear that inconsistent advice has been given by HS2, and I will want to look into it.

[Charlie Elphicke (Dover) (Con)]

3. What assessment he has made of the potential of High Speed 1 domestic services in Kent to expand.

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

I recognise the importance of domestic High Speed 1 services to the people and economies of Kent. The Department is currently negotiating a direct award with Southeastern, which operates them, in which we will consider what improvements can be made to services. We are also undertaking an evaluation study of the High Speed 1 infrastructure, which is due to report in spring next year.

[Charlie Elphicke]

I thank the Secretary of State for that answer. High-speed services are economically transformational for east Kent. Constituents of mine in Deal, and those in Sandwich, wish to have an all-day Javelin high-speed service. Will Ministers help to make that happen?

[Mr McLoughlin]

I know how very important the high-speed service has been to my hon. Friend’s constituents. Although high-speed rail does not run right down to Deal or Sandwich, his constituents get the benefit from HS1 as the Javelin train from St Pancras carries on to serve them. There are ongoing negotiations about the franchise extension, which we will be doing with Southeastern, and I will certainly bear his comments in mind.

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

4. What plans he has to extend railway electrification.

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

In the rail investment strategy the Government are investing in more than 800 miles of electrification up to 2019. This includes lines in the north-west, north trans-Pennine, midland main line, electric spine, Great Western main line and Welsh valley areas. That is a substantial advance in electrification of the railways in this country.

[Andrew Jones]

I thank my right hon. Friend for that answer. A couple of weeks ago, I launched the business case for the electrification of the Harrogate to Knaresborough rail line, which would bring more frequent and quicker services for passengers, and a great return for taxpayers from public money. Will he meet me to discuss this opportunity?

[Mr McLoughlin]

I will be delighted to meet my hon. Friend, who wastes no opportunity to raise this case for electrification with me. He has been a doughty campaigner for it. We have received a copy of the business case for the electrification of the Leeds, Harrogate and York line. The case looks promising and I am more than happy to discuss it further with him.

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

Plans for electrification are very welcome, but when will rolling stock be available for the electrified lines in the north, now that that there has been such a delay in the procurement for the Thameslink project?

[Mr McLoughlin]

I hope that that delay, on which there was a Public Accounts Committee report recently, will not lead to long-term delay. I am confident that once we have done the electrification the rolling stock will be ready to fulfil the needs we all want it to fulfil.

[Tim Farron (Westmorland and Lonsdale) (LD)]

The Secretary of State will be aware that people in Cumbria very much welcome the plans for electrification of the lakes line to Windermere and the benefits that will bring to the economy and the environment. Will he also consider the electrification of the Furness line from Lancaster to Barrow, which goes through my constituency? That would link the industrial centres of Barrow and the western Lake district to the main line.

[Mr McLoughlin]

Indeed, and when I was in my hon. Friend’s constituency in the summer I was made very much aware of the desire for that line to be electrified. One great thing that has happened in the railways is that the constant request of any Secretary of State now is for more services and better services. That just shows how important the railways are now to our national life, and I will look at the case he makes.

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

Will the Secretary of State tell me why under the current arrangements the electrification of the route to Hull will stop at Selby, which, as I am sure he knows, is several miles short of Hull? Will he do everything he can to support the Hull trains proposal to extend the electrification to Hull?

[Mr McLoughlin]

I could point out to the hon. Lady how much of the line was electrified by the previous Labour Government in 13 years: 10 miles, as opposed to the 880 miles that we are planning to electrify as part of our commitment to the railways. She is making yet another case for further electrification of an important line and I shall certainly look at the case again in detail.

[Nigel Mills (Amber Valley) (Con)]

The Secretary of State will know that the welcome electrification of the midland main line will miss out the two stations in my constituency at Langley Mill and Alfreton. Will he consider the plans to complete that little section so that the whole line is electrified?

[Mr McLoughlin]

I had a meeting on Monday morning with the people operating the midland main line franchise and that particular issue was pointed out to me. We plan to electrify the whole line from St Pancras up to Sheffield, but my hon. Friend is right that part of it, which goes through his constituency, is missed out. I have no doubt that we will want to look at that as we are doing the rest of the line.

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

Last November, I asked the Secretary of State whether one of the intentions behind the electrification of the midland main line was to speed up journey times, in which case the line would need the new inter-city express trains and not the transfer of old rolling stock from the east coast line, which would be slower and would increase journey times. The Secretary of State could not answer me then. Can he tell me now whether the electrified midland main line will get the new rolling stock needed to speed up journey times, which is what we both want to see?

[Mr McLoughlin]

I travelled down on the line—in the cab, as it happens—on Monday morning and I saw some of the work that is going on for the planned electrification. A number of bridges are being replaced, which is necessary. That work is well under way and has started well. I will consider the questions about new rolling stock in due course when I come to consider the remaining period of the franchise.

[Mr Robert Buckland (South Swindon) (Con)]

5. What progress he has made on reviewing the structure of rail passenger fares.

--- Later in debate ---

[Mrs Anne McGuire (Stirling) (Lab)]

10. What recent assessment he has made of East Coast Main Line Ltd’s financial performance.

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

My officials regularly meet representatives of East Coast Main Line and Directly Operated Railways to discuss the performance of the franchise. DOR’s financial accounts are published on its website annually. On 24 October, I announced the start of the competition for a new private sector partner for InterCity East Coast and published a prospectus for the East Coast Main Line business, which included an assessment of its financial performance.

[Mrs McGuire]

I thank the Secretary of State for his answer. Will he confirm that while German, Dutch and French railway companies will be allowed to tender for the new franchise, a successful British company that is currently operating the franchise will not be allowed to do so?

[Mr McLoughlin]

I refer the right hon. Lady back to the time when she was a supporting member of the previous Government, when the then Secretary of State said:

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

Rail franchising has led to the biggest growth in rail usage in this country that we have ever seen—up from 750 million to 1.5 billion passenger journeys. I want that improvement to continue, and that is why huge investment is going into the east coast main line.

[Graeme Morrice (Livingston) (Lab)]

12. The publicly run east coast main line franchise will have returned £800 million to the taxpayer by the end of this financial year, and all its profits are reinvested in the service. Why are the coalition Government privatising this successful public operator, given that the previous two private operators failed?

[Mr McLoughlin]

As I pointed out to the right hon. Member for Stirling (Mrs McGuire), I am following the policies that have taken the rail industry from 750 million to 1.5 billion passenger journeys. I am happy to speak for the passengers and for all the people who work on the railways; it seems as though Labour Members are happy to speak just for the union barons. They can speak for the barons; I will speak for the workers, the consumers and the people who use our railways.

[Heidi Alexander (Lewisham East) (Lab)]

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

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

We have started consultations on our plans to reform the Highways Agency into a Government-owned company, backed by legislation, to achieve greater efficiency as we treble our capital spending on the strategic road network. Significant efforts have been made this year across road, rail and aviation to boost resilience and preparedness for the winter months. This week, the Highways Agency began its “Make time for winter” campaign, with practical advice for drivers. Local highways authorities are holding robust salt stocks and will enter the winter with a healthy supply.

[Heidi Alexander]

The Government’s policy on rail fares will offer scant consolation to my constituents, who not only have to travel on unbearably overcrowded trains into central London but in the past two years have been asked to pay £100 more for their annual season ticket. What guarantee can the Secretary of State give that above-inflation increases in rail fares will be matched by a comparable increase in capacity?

[Mr McLoughlin]

There is a problem, but we are investing record amounts in the rail industry. Over the next five years, Network Rail will invest some £38 billion in the railway network. Those are very significant investments that are bringing on new rolling stock and better capacity and efficiency to try to help people who are suffering. I do accept, particularly where there is overcrowding, that we need to try to do more to help those consumers.

[Mr Philip Hollobone (Kettering) (Con)]

T2. The electrification of the midland main line through Kettering is extremely welcome, but the immediate consequence for Kettering residents is the complete closure of the Pytchley Road bridge as it is changed to accommodate the new overhead wires. That means that the main access route into Kettering from the south will be completely closed for three months over the Christmas period. Will the Secretary of State ensure that Network Rail completes this job on time by the end of February 2014?

[Mr McLoughlin]

I well understand the concerns raised by my hon. Friend. This is one of the problems when major work is done on the railways. As he may have heard earlier, I travelled in the cab of one of those trains on Monday to see some of the work that is already ongoing in preparation for the electrification of the whole line. There will be some disruption—that is unavoidable. Nottingham station was closed for five weeks over the summer, but the whole job was done on time and it actually came in £5 million below budget.

[Ian Mearns (Gateshead) (Lab)]

T3. The Secretary of State will be aware that there has been significant disruption on the east coast main line because of infrastructure failure. I think we have now had three Mondays on which there has been significant disruption, and a fortnight ago 30,000 passengers were stranded, some for five or six hours, while repairs were carried out. The east coast main line was electrified on the cheap—many engineers tell us that, and there has been severe disruption. Can we do something about it, please?

[Mr McLoughlin]

I understand the hon. Gentleman’s point. It relates to what we are doing with HS2 to increase capacity in the longer term, although that is not the short-term answer he wants. I was disturbed to read the reports about the delays on the line, and I will talk to Network Rail to see if there is anything we can do.

[Peter Luff (Mid Worcestershire) (Con)]

T4. The high speed of High Speed 2 will depend on the high technology of a new generation of civil engineers, mechanical engineers, electrical engineers and many others. May I challenge a member of the ministerial Front Bench to come upstairs with me, after Question Time, to the Bloodhound supersonic car simulator to see whether they can beat the very creditable speed of the hon. Member for Birmingham, Northfield (Richard Burden) and learn about what the product is doing to inspire a new generation of children about the opportunities for British engineering?

--- Later in debate ---

[Steve Rotheram (Liverpool, Walton) (Lab)]

T7. I am basically supportive of HS2 proposals, although I am becoming increasingly concerned about the project the more I read the specific detail of regional benefits. Will the Secretary of State assure me that Liverpool will get a spur to increase capacity and ensure greater connectivity with our ports so that the whole city region can benefit?

[Mr McLoughlin]

I am sorry that the hon. Gentleman seems to be having second thoughts. The mayor of Liverpool is certainly not having second thoughts and is a big supporter of the project. The truth is that once the high-speed line goes to Manchester, it will then go on to Liverpool. That will be very important for Liverpool, but it will also get the benefits from phase 1. Parts of Kent that are not served by the line benefit from the capacity and the trains.

[Henry Smith (Crawley) (Con)]

T5. I am extremely grateful to have got here, having been stuck outside Clapham Junction station. May I seek assurances from the Department that it will work closely with major transport infrastructure such as Gatwick airport and those who operate the M23 and the London to Brighton rail line to ensure that there is winter preparedness?

--- Later in debate ---

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

T6. The Secretary of State has been very kind to the East Riding in respect of pinch-point funding. I urge him to extend his kindness to the other side of the Humber and support the pinch-point funding bids from North Lincolnshire council, of which my hon. Friend the Member for Cleethorpes (Martin Vickers) and I are very supportive, and in particular the bid that relates to Humberside airport.

[Mr McLoughlin]

I have visited my hon. Friend’s constituency to look at one of the pinch-point schemes that has received funding and will take any representations about other schemes into account.

[Fabian Hamilton (Leeds North East) (Lab)]

Although the reduction in road accident fatalities is warmly to be welcomed, what plans does the Department have to make cycling safer, given the increase in cycling fatalities not only in London, but beyond, which has been mentioned by my hon. Friend the Member for Birmingham, Northfield (Richard Burden)? When will the Secretary of State encourage the creation of segregated cycle paths?

[Mr McLoughlin]

We all want local authority highways agencies to give greater consideration to cycling. After meeting British Cycling a few weeks ago, I instructed the Highways Agency that all the highways schemes that it comes forward with must be cycle-proofed. There are some irresponsible drivers and some irresponsible cyclists. We all have a responsibility to get the message across to everybody: “Be careful on our roads.”

[Charlotte Leslie (Bristol North West) (Con)]

T8. How can the Secretary of State reassure the people of Bristol, who want enhanced branch lines, that having HS2 for London and the north will not mean that the south-west is left out? Will he look positively at bids to reopen the Henbury loop line in north Bristol?

[Mr McLoughlin]

The development of HS2 does not mean that the people of Bristol and the south-west will be left out. HS2 is part of a bigger boost to our transport system and will make up less than a quarter of the transport investment in the next Parliament. I am always interested in talking to my hon. Friends about the schemes that they are promoting in their constituencies and I am more than happy to meet my hon. Friend to discuss her scheme in greater detail.

[Jim Shannon (Strangford) (DUP)]

Does the Minister agree that as we approach the Christmas period, more use should be made of the media, and television in particular, to underline the zero-tolerance message on drink-driving? Will he consider running such a campaign in conjunction with all the regions of the United Kingdom of Great Britain and Northern Ireland?

--- Later in debate ---

[Phil Wilson (Sedgefield) (Lab)]

The A67, which runs through my constituency between Darlington and Barnard Castle, is a major bus route. It recently suffered from a major landslip at Carlbury banks, which is severely disrupting bus services. Will a Minister meet my hon. Friends the Members for Bishop Auckland (Helen Goodman) and for Darlington (Jenny Chapman) and me to see whether any funding can be made available from the pinch-point fund?

[Mr McLoughlin]

I was in the hon. Gentleman’s constituency last Friday for the start of work on the new Hitachi site, which will build new trains for the east coast and Great Western lines. I am sorry to hear about the problems that he is having with part of his highways network. We will be happy to talk to him in due course.

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

The Secretary of State will be aware that the M25, which spans my constituency from junction 23 to junction 25, has had a serious spike in fatal accidents, which included the tragic deaths of three people and two young girls during the course of one week. Will he urgently investigate the causes of those accidents, which might include the road management measures during the road expansion works, and let me know what he finds as soon as possible?

[Mr McLoughlin]

My hon. Friend has already written to me about this issue, and brought my attention to those appalling incidents that caused the death of those people, and the families who were affected, as well as incredible disruption to his area. I want a full investigation into whether the points he has raised had any bearings on those accidents.

The hon. Member for Aberdeen North, representing the House of Commons Commission, was asked—

High Speed Rail (Preparation) Bill

Lord McLoughlin Excerpts

Thursday 31st October 2013 Commons Chamber

[Mrs Gillan]

I thank the hon. Gentleman for that intervention. Of course, it echoed the words of Lord Mandelson, who really does know an awful lot about the genesis of this project. It certainly has that vampiric touch about it, as I think Members on both sides of the House can appreciate.

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

If HS2 is going to suck the lifeblood of the northern cities, as the hon. Member for Huddersfield (Mr Sheerman) suggests, why are the leaders of those northern cities, such as Sir Richard Leese and Albert Bore, the loudest demanders of this service?

[Mrs Gillan]

Oh simple, simple question, Secretary of State! What leader of any council of any political colour or persuasion would turn down the millions and millions of pounds being thrown at their areas? It would be completely stupid of them to do anything other than support it.

--- Later in debate ---

[Mr McLoughlin]

I beg to move, That the Bill be now read the Third time.

Let me begin by thanking all Members who served on the Public Bill Committee. In particular I thank my right hon. Friend the Member for Chelmsford (Mr Burns), not only for his work on the Bill, but also for the hard work that he put into the Department for Transport during his time there. It was a great pleasure to work with him.

For a project as important as this, everyone should have their say—indeed, it sometimes feels as if they do. At the same time, however, we need to move the debate forward, which is what the Bill does. This is the point at which the debate starts moving from “if “ to “when”. The House has already voted overwhelmingly in favour of the principle of a new high-speed, high-capacity rail network. I hope it will do so again this evening because the decisions we take today will benefit our country for decades to come.

Just this week, with the storms that hit the south and east, we have seen how crucial our railways are to national life. When trains are crowded and disrupted, life for hard-working people gets more difficult. That is why the new north-south line is not some expensive luxury.

[Mr Cash]

Will my right hon. Friend give way?

[Mr McLoughlin]

I will, but I do so reluctantly because of the number of hon. Members who want to take part in Third Reading.

[Mr Cash]

I understand why the Secretary of State is reluctant to give way. Throughout the whole of this land, people are deeply disturbed by the manner in which the Bill is being rammed through. Furthermore, as he well knows, the arrangements he has described as benefits are not accepted by my constituents and many other people, nor by the many reports emanating from the Public Accounts Committee and others that demonstrate that HS2 is not a straightforward benefit, and is in fact quite the opposite.

[Mr McLoughlin]

I know my hon. Friend is not in favour of the new line—he loses no time in telling me that. I dare say that similar comments were made in debates on railways in the House over the centuries. The truth is that the line will be the first line built north of London in 120 years. I understand the concerns of hon. Members whose constituencies the line goes through. I do not dismiss them and have never done so. I want to ensure that we have a fair compensation scheme in place. I believe that the scheme is, without any doubt, right for the future of the UK.

I find it rather ridiculous that I can go from London to Paris on a high-speed train, and that my hon. Friend can go from London to Brussels on a high-speed train—I know he keeps a close eye on what goes on there—but we cannot go from London to Birmingham, Manchester or Leeds on a high-speed train. The time has come for a steep uplift in our transport system.

I should tell my hon. Friend that there is still a long way to go. We must take the hybrid Bill through the Commons. There will be plenty of opportunities to debate it in detail. As the right hon. Member for Blackburn (Mr Straw) said, HS2 will be debated in far more detail than roads that now go through various constituencies when they probably caused greater environmental damage.

[Andrew Bridgen]

Will my right hon. Friend give way?

[Mr McLoughlin]

I do not want to take too long because I know many hon. Members want to speak. I will give way—for the last time—to my hon. Friend.

[Andrew Bridgen]

I thank my right hon. Friend for giving way. It is true that this is a high-speed debate. Does he agree that an hour is completely insufficient parliamentary time for a Third Reading debate on the largest infrastructure project the country has ever seen?

[Mr McLoughlin]

My hon. Friend has taken part in the Third Reading of many Bills—they have always been hour-long debates. In fact, it is only recently that we have had debates on Third Reading. Back in the days when the right hon. Member for Blackburn was Leader of the House, we sometimes did not have debates on Third Reading because we simply did not have the time. The Government are trying to help everybody we can—[Interruption.] I do not want to get any more partisan now that I have the right hon. Gentleman on side.

The Bill is about helping communities and businesses, and helping the cities of the north and the midlands to compete on equal terms with London. Nobody begrudges the money we are spending on Crossrail or Thameslink. They are huge investments in our capital city, but it is time we looked at what is happening in the rest of the country.

Three important words—room for growth—sum up why the project is so important. They are at the core of the strategic case we published on Tuesday. The responses to the report show the crucial message of growth. The British Chambers of Commerce states:

“This report bolsters the economic case for HS2…HS2 is the only scheme that can transform capacity on Britain’s overstretched railways.”

The CBI has thrown its considerable weight behind the project. It did so because the new line is part of the answer to the infrastructure deficit that faces our country. The leaders of our great cities back HS2. Sir Richard Leese, leader of Manchester city council, has said:

“It’s straightforward and simple. We need more capacity and the only way is through this new network.”

Since 2008, the country has learned some tough lessons, but we must make ourselves more resilient and competitive as an economy. That will not happen if we do not take the long-term decisions on investment and stick to them. Our society is changing, our population is growing, people are travelling more, and demand for inter-city rail travel has doubled in the past 15 years and will continue to increase.

As I have said all along, I welcome suggestions for creating more capacity, but the so-called alternative suggestions from the critics simply do not add up. We have looked at the case for building new motorways and dramatically expanding domestic aviation. Neither does the job. Some people believe we can carry on squeezing more room out of our current railways, patching up our problems. The work we published this week shows that, if we tried to create the capacity we needed by upgrading the three current main north-south lines, we would face 14 years of weekend closures. That is not an alternative to the new line, it is disruption on a nightmare scale.

We are already investing record sums in the existing railway. Network Rail will spend £38.3 billion in its next five-year control period, and the Government have a £73 billion budget for wider transport investment over the next Parliament. Despite all that, we will still need new rail capacity. If one accepts that—and that we need room to grow—there is no choice about how to provide it. As the strategic case makes clear, a new high-speed north-south line is not just the right way, it is the only way.

The new north-south line will be the backbone of Britain. It will have 18 trains an hour, each carrying up to 1,100 passengers, transforming the available space on inter-city lines. As long-distance services transfer to the new line, capacity will be released on the existing network. Of course, not every city across Britain will benefit in the same way, but Network Rail estimates that more than 100 cities and towns could benefit from released capacity. It would mean significantly more commuter services, better connectivity and more routes for rail freight, taking lorries off our most congested roads.

We know that HS2 is the best answer to our transport problems, but as with any large infrastructure scheme, we also know we will face opposition. I respect the fact that some people are concerned about the impact on the places they live, and I respect those with serious proposals for improvements. Already, the environmental impact of the new line has been vastly reduced thanks to such improvements. But I also respect what Sir John Armitt said in his recent report on infrastructure—that big schemes need “broad political consensus” as well as “resolution” from political leaders.

HS2 must be a national project with support across the parties, or in the end it will be nothing. Labour leaders in our great cities across the north and the midlands know that HS2 is right. To those who say that there is no blank cheque, I say that there never has been and there never will be. I know that hon. Members want costs controlled. Here are the facts. The target price for the first phase is £17.16 billion. That is the price for construction agreed with HS2 Ltd. For the whole Y-route, the agreed budget is £42.6 billion, including a contingency of £14.4 billion, which we are determined to bear down on. Sir David Higgins—the man who built the Olympics on time and on budget—will make sure that happens. As the new chairman of HS2, he will bring his penetrating eye and expertise to the task to get the best value for our country.

As the strategic case published this week shows, our updated benefit-cost ratio has fallen slightly from 2.5 to 2.3. We have been open about that, but it means that the business case for the new north-south line is still strong, with more than £2 returned for every £1 invested—about the same as Crossrail and Thameslink, and nobody seems to doubt those projects. In fact, the ratio for HS2 could increase to 4.5 if rail demand continues to rise until 2049.

It is still important to recognise that the benefit-cost ratio cannot take account of unpredictable factors. That was true of the Jubilee line extension in London, for instance, which did not include the 100,000 jobs it now supports at Canary Wharf. It was true for High Speed 1, which did not include benefits from redevelopment at King’s Cross and St Pancras. When I first became a Member of Parliament, King’s Cross and St Pancras were places where people did not want to spend any time if they could possibly get away with it. They would try to turn up just before their train was due to leave. Those stations are now destinations in their own right. People go there and look with amazement at what has happened to the UK’s railway system.

[Frank Dobson]

I represent not just St Pancras, but Euston and King’s Cross. Does the Secretary of State accept that virtually all the people in my constituency who are now opposed to HS2 were strongly in favour—indeed, the first advocates—of the transformation of St Pancras and the improvements at King’s Cross?

[Mr McLoughlin]

Of course I do. I am more than happy to meet the right hon. Gentleman to discuss the particular issue of Euston station, because the redevelopment will bring specific problems. But we must also ensure that we get the very best deal for his constituents in the redevelopment of Euston station. I am meeting the leader of Camden council next week, although I do not know if the right hon. Gentleman will be there. I do not discount the concerns of local residents about the work on major infrastructure projects, and we have to take them into account.

[Jonathan Edwards]

Last week it was disclosed that the Treasury had made a mistake and awarded Barnett consequentials to Wales in the 2015-16 spending round. Subsequently, the Treasury said it would claw the money back in the next spending review and that it did not set a precedent. Will the Secretary of State confirm that there will not be a clawback, that the precedent has now been set and that Wales will have the consequentials? Unless he does so, we will vote against him on Third Reading.

[Mr McLoughlin]

It would be a brave Secretary of State who started second-guessing the Treasury, and I will not do that now. I understand the hon. Gentleman’s representations and will bear them in mind.

I will briefly explain the next steps. We intend to submit the hybrid Bill before Christmas. In February, the growth taskforce reports. I know the challenges ahead, but also the opportunities. We are not here to patch up our railway once again, only to spend far more later when it turns out that we should have invested properly at the start. It will take determination to strengthen our country. I urge this House to support the Bill. It is our chance to get ahead and to invest in our long-term prosperity.

HS2

Lord McLoughlin Excerpts

Tuesday 29th October 2013 Written Statements

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

The Government have today published “The Strategic Case for HS2”, an updated economic case and other supporting documents, including a technical report into possible alternatives to HS2 by Atkins and Network Rail

I regard the publication of these documents as an important step in my preparations for laying the hybrid Bill before Parliament later this year and I consider this to be an opportune time to explain the benefits of HS2 clearly and comprehensively.

Good quality transport is at the heart of our economic success and the decisions we take now about transport investment will determine our country’s economic future.

The case for the new line rests on the step change in capacity and connectivity it will provide.

The new north-south railway is a long-term solution to a long-term problem. Without HS2, the west coast, east coast and midland main lines are likely to be overwhelmed. With it, we will transform intercity travel. There will also be benefits for regional and commuter services. It will increase the amount of freight that can be carried by rail.

HS2 will provide a very significant increase in capacity on the rail network. It will deliver a 14 trains per hour capability in phase 1, rising to 18 trains an hour in phase 2— transforming intercity rail services.

Significant journey time improvements will be possible, such as reducing the journey time between London and Manchester from two hours eight minutes to one hour eight minutes. HS2 will connect eight of our 10 largest cities and bring two thirds of the population within two hours of London.

And HS2 could provide space for at least an extra 20 west coast main line freight paths, with each extra freight train typically taking 40 lorries off our roads; easing congestion and reducing carbon emissions.

These transport improvements will help support economic growth and make a major contribution towards rebalancing the economy.

Subject to parliamentary approval, the new railway will be built in two phases. It will be fully integrated with the rest of the railway network. It will bring benefits to places with stations on the new railway including Leeds, Manchester, Birmingham and London; to stations on the classic network like Liverpool, Darlington and Newcastle which will receive high-speed services; and to other places on the existing mainlines like Milton Keynes, Rugby and Peterborough, which will have better services from released capacity on the existing main lines.

Analysis by Atkins and Network Rail has considered whether we could meet the capacity challenge in other ways—for example through upgrades to the current railway. But HS2 emerges as the only option that provides not only the capacity and the connectivity this country needs, but is also deliverable, minimises disruption to existing rail services and allows us to leap ahead of demand and reshape the economic geography of the country.

The updated economic case scrutinises again the costs and benefits of HS2. The new analysis shows that the Y network delivers a good return on investment, with a standard cost benefit ratio of 2.3.

HS2 has been allocated a funding envelope of £42.6 billion in the 2015 spending review and will not exceed that allocation. It includes £14.4 billion of contingency, which I am determined to bear down on and I have put in place rigorous controls, including a target price for HS2.

We are continuing to work with the construction and supply industry and with local communities to ensure that this unprecedented investment in a new north-south line will deliver the best possible return to the British economy, and be built at the lowest possible cost and with the lowest possible environmental impact.

I am laying copies of these documents in the Libraries of both Houses.

HS2 Ltd

Lord McLoughlin Excerpts

Thursday 10th October 2013 Written Statements

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

I am announcing the appointment of Sir David Higgins as chair of HS2 Ltd. Sir David will be taking over the role from the current chair, Sir Doug Oakervee, as of January next year.

A revised HS2 Ltd framework document which sets out the governance and sponsorship arrangements between the Department for Transport and HS2 Ltd has been published. Copies of the document will be placed in the Libraries of both Houses. Any future revision to the document will also be placed in the Libraries of both Houses.

The document is available online at:

https://www.gov.uk/government/policies/developing-a-new-high-speed-rail-network and http://hs2.org.uk/.