High Speed Rail (Preparation) Bill
Lord McLoughlin Excerpts(10 years, 10 months ago)
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The Secretary of State for Transport (Mr Patrick McLoughlin)
I beg to move, That the Bill be now read a Second time.
Today, my right hon. Friend the Chancellor of the Exchequer has set out far-reaching plans to provide the infrastructure that we need to compete in the global race. We need better roads, better airports, better ports, and better rail links too—an ambitious programme for all parts of our country, with HS2 an important part of that. A growing economy, a growing population and growing demand for transport, which have seen rail travel double in a decade, mean that we must act. HS2 will be the first new main rail line north of London for 120 years, linking at least eight of our 10 largest cities, and improving services for Scotland too. I am pleased that HS2 enjoys the broad backing of all the main parties in the House. I want to make three points.
Mrs Cheryl Gillan (Chesham and Amersham) (Con)
The Secretary of State has just said that the proposed High Speed Rail (Preparation) Bill paves the way for links to Scotland, so will he explain why clause 1(2)(a) does not make any mention of Scotland or proposals to connect HS2 to Scotland?
Mr McLoughlin
I shall come on to explain, if I may make a bit of progress, the way in which we shall link up to Scotland, and why the Bill covers the area. The Bill provides that important opportunity, and I shall come to that in a short while.
As I was saying, I want to make three points: first, the reason why a new high-speed line is right; secondly, the purpose of the Bill; and thirdly, the work that we are doing to manage the costs of the scheme. Why is HS2 necessary? The answer is not only speed, although HS2 will take an hour off journeys between London and Manchester, and between Birmingham and Leeds, and it will bring two thirds of people in the north of England within two hours of London.
Fiona Bruce (Congleton) (Con)
Is the Secretary of State aware that if there is to be a tangible economic benefit to my constituency and the wider Cheshire region, there must be a hub station stop at Crewe, otherwise it will take longer to travel by High Speed 2 up to Manchester and then travel down on a local line to that area?
Mr McLoughlin
I know that my hon. Friend is concerned, as I am, to make sure that there are sufficient connections right across the country. We have not yet reached the consultation stage on phase 2. Part of the reason why we published phase 2, although it would have been easier not to do that, was to show our commitment to serving the north, right up to Manchester, Leeds and the east midlands. So I am pretty sure that I will be hearing a lot more from my hon. Friend and others on the question of where the station should be located—Crewe or Staffordshire.
Mr McLoughlin
I met a group of Members from—well, I was going to say Staffordshire—I met two Members from Stoke-on-Trent and one from Staffordshire, and I give way to him.
Paul Farrelly
I thank the Secretary of State for giving way and for his generous offer of coming to visit and see the lie of the land in north Staffordshire and east Cheshire. He will appreciate after our meeting that it is difficult for Members from north Staffordshire to support HS2 as it stands because it may very well, on the current modelling, reduce the number of direct trains from Stoke-on-Trent from 31 a day to just three a day. This knock-on issue is relevant to people from Stockport all the way down to Coventry, as he will see from the amendment. What assurances can he give that the west coast main line in the future, after HS2, will not become the ghost train line running a skeleton service, as the projections currently suggest?
Mr McLoughlin
I met the hon. Gentleman yesterday along with two of his colleagues, and I can assure him that this is about providing extra capacity, not reducing services. I want to consider the points that he and two of his hon. Friends made to me yesterday along the same lines. I do not recognise where he gets his figure of three services per day compared to the present level of service. Of course, that will be part of the consultation and one of the aspects that we will examine fully as we move forward.
Jonathan Edwards (Carmarthen East and Dinefwr) (PC)
The last time I looked, York, Manchester, Birmingham and London were in England. HS2 was clearly an England-only project, yet there will be Barnett consequentials. Unless the Secretary of State can state that there will be equivalent consequentials for Wales amounting to about £2 billion, we will vote against the Bill at every stage.
Mr McLoughlin
I am sorry the hon. Gentleman feels that way, because I believe there will be advantages to Wales as well. As HS2 serves an area up to the north Wales coast, there will be ways in which that can be an advantage. I think he is saying that he will vote against because he is not getting the opportunity to get high-speed services. If we do not get the route as currently proposed, he has no chance of getting any high-speed opportunity whatsoever. He will see, if he looks at the way the plans are laid out, that this can be developed further—even further up to Scotland, as the Bill makes clear.
Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)
The Minister talks of expansion further up to Scotland. When? Given the remarks about no Barnett consequentials, the “when” is not in a decade, but should be here and now.
Mr McLoughlin
I announced last October the work that was already being commissioned by HS2 to take the link up to Scotland, and I am more than happy to have discussions with Scottish Ministers and the Scottish Government about that.
Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)
I suspect that even the Scottish National party does not expect the line to reach the constituency of the hon. Member for Na h-Eileanan an Iar (Mr MacNeil) any time soon, but I hope it will reach my constituency.
Mark Lazarowicz
I would like to believe that it will not be next century and that my constituents will be able to benefit from the line as well. Clearly, they will benefit from faster services in so far as they can use the line further south, but we need to see work being done now and commitments made now to ensure that the further additions from HS2 do not start happening only in 2033.
Mr McLoughlin
The hon. Gentleman makes a fair point. As I announced last October, I have asked HS2 to start doing the work on that, and I hope to be in a position to say more about it in due course. I cannot give him a specific date at this stage because there are some very big issues to address.
I was saying that HS2 will bring about two thirds of the people in the north of England within two hours of London. Its purpose is not merely to keep pace with our competitors, although it is worth pointing out that Italy will soon have 926 miles of high-speed rail, whereas we have just 67 miles.
Julian Smith (Skipton and Ripon) (Con)
Is not Lille in the north of France an excellent example of the benefits that high speed can bring to a city?
Mr McLoughlin
Indeed, and I will say a little more about Lille shortly. I think my hon. Friend may have a copy of my speech, although as I was working on it until not long ago, I would be surprised if he had.
Mr McLoughlin
Mr Speaker, I know that a great number of Members want to speak in the debate and I will give way a number of times, but I am mindful of the fact that you asked me to allow plenty of time for others to take part.
Mr Jim Cunningham (Coventry South) (Lab)
I apologise to the Secretary of State for coming in late and I appreciate the fact that he has given way to me. Can he tell me what Coventry will get out of high-speed rail and, more importantly, what about a decent compensation package?
Mr McLoughlin
I will come on to say something about compensation later in my speech. I think Coventry will get many benefits. The whole west midlands area will get a huge number of benefits from HS2. I want to see councils such as Coventry start working to make sure that they can get the best out of High Speed 2, both from the connections and the way we serve those areas. I know the hon. Gentleman is incredibly concerned about the way we serve Coventry. As somebody who knows Coventry relatively well, I am also concerned to see that take place.
Caroline Lucas (Brighton, Pavilion) (Green)
The Secretary of State is very kind to give way. My point is that not only is the route of HS2 environmentally damaging, but the whole scheme is socially regressive. It is unaffordable to the bottom 50% of income bands and, in effect, it redirects money from the poorest to the richest. How can he justify this reverse Robin Hood strategy when that £33 billion could be better invested in giving us a better rail system for everybody, not just for the privileged few?
Mr McLoughlin
I find the hon. Lady’s position on the issue strange. I should have thought that the Green party would welcome such investment in public railway systems. [Interruption.] I think I had better answer the hon. Lady. HS2 brings a great increase in capacity and I want to say more about that a little later. That is one of the important issues that lies behind the need for HS2. Also, as I point out to colleagues, going from St Pancras station to Canterbury, the first part of the route from St Pancras to Ashford on a high-speed train is a fantastic fast journey, then one hits the Victorian railway network to Canterbury and the journey slows down completely. I want the rest of the country to get the benefit of high-speed rail, not just the area in the south which already has a high-speed service.
Sammy Wilson
And I have no idea how the Minister would extend it to Northern Ireland, but Northern Ireland does not benefit from the Barnett consequentials of this spend, either. Because there is a construction interest, can he give an assurance that when it comes to procurement, there will be no repetition of the mistakes that were made in the past whereby UK-based companies did not benefit from some of the high-spend capital projects, and there will be opportunities for construction firms from Northern Ireland?
Mr McLoughlin
I am more than happy to do that and I shall say more about that later. Crossrail has set a good example. About 97% of Crossrail goods are serviced by British companies, and the Mayor of London is in the process of purchasing a huge infrastructure project, the new London buses, from Northern Ireland. That is very much in my mind with regard to the way I will be dealing with HS2 and talking to the management of HS2.
Damian Collins (Folkestone and Hythe) (Con)
My right hon. Friend mentioned his rail journey to Canterbury. I encourage him to take a different branch on High Speed 1 and travel to Folkestone, as he will see that the investment in High Speed 1 is the biggest single advantage we have in promoting the east Kent regional growth area.
Mr McLoughlin
I am grateful to my hon. Friend, who makes that point from vast experience. It is worth remembering how controversial High Speed 1 was when it was built. I will talk about that a little later. The simple fact is that every infrastructure project—not nearly every project, but every project—is very controversial when it first starts, and in that regard High Speed 2 is no different.
Alec Shelbrooke (Elmet and Rothwell) (Con)
Will the Secretary of State give way?
Mr McLoughlin
I will not be in the position that you are in, Mr Speaker, of having actually counted the number of interventions I have taken, but I will give way to my hon. Friend.
Alec Shelbrooke
My right hon. Friend is absolutely right that all major infrastructure projects are controversial. Would he like to reflect on where he thinks the great city of Leeds would be today had we not built the M1?
Andrew Bridgen (North West Leicestershire) (Con)
Probably in the same place. [Laughter.]
Mr McLoughlin
Indeed, but it would be very difficult to get to, and it would not have benefited from the improvements we have seen there.
I think that the answer starts with a simple point: without HS2, the key rail and road routes connecting London to the midlands and the north will soon be overwhelmed. Even on moderate forecasts, the west coast main line, the nation’s key rail corridor, will be full by the mid-2020s, a point made earlier by my hon. Friend the Member for Shrewsbury and Atcham (Daniel Kawczynski), who wants more services from Shrewsbury to Blackpool. Having served as a Transport Minister in 1989, I know that the fundamental change that has taken place since then is that the pressure on a Transport Secretary now is often to find more services for the rail industry and more rail connections across the country—I was just talking about the west coast main line—and that is despite £9 billion of improvements north of Rugby in recent years. That means investing in the current infrastructure and trying to improve it. There are still problems south of Rugby, which is why Virgin has suffered problems in meeting some of the criteria it regards as important in providing the right kind of service.
Mrs Gillan
Has the Secretary of State had an opportunity to look at the financial results released by Virgin Trains this morning? They indicate that profits are down by 40.5% but revenue is up by 2.8%, which is roughly the same rate as the fare increases, so the passenger increase must be very small. It says that it has now increased capacity by 40%, and this month it started a major advertising campaign to attract passengers. Does that sound like a railway line that is full to capacity?
Mr McLoughlin
No, it sounds like a railway that is providing the services that all colleagues want to see. As I pointed out a few moments ago, in certain areas hon. Friends are pressing for further services that cannot be provided because Network Rail says there is no availability on the existing highways.
Mr Marcus Jones (Nuneaton) (Con)
My right hon. Friend can rest assured that, for a change, I will not be using this opportunity as a pitch to get more fast services to Nuneaton on the west coast main line. Can he assure me that, despite the investment being made in HS2, investment will still be made to continue to improve the services and capacity on the west coast main line?
Mr McLoughlin
Yes, indeed. That is one of the points that will become very apparent with the investment programmes we have over the coming years and that Network Rail will be carrying out. I can assure my hon. Friend that it is not a case of either/or; it is essential to invest in both areas.
David Mowat (Warrington South) (Con)
I would like to add a thought on the capacity question. Will the Secretary of State confirm that over the past 15 years passenger numbers have increased by an average of 5% a year and that the business case for HS2 assumes an increase of 1.6% a year, which is quite a conservative estimate?
Mr McLoughlin
Indeed, and I am grateful to my hon. Friend. Basically, 15 years ago there were about 750 million passenger journeys, and the latest estimate is for 1.5 billion passenger journeys, which is a massive shift that I would have thought my right hon. Friend the Member for Chesham and Amersham (Mrs Gillan) would welcome.
Mr McLoughlin
Now, there is a choice. As a bit of a conservative, I will go with seniority, if my hon. Friend the Member for Wycombe (Steve Baker) will forgive me.
Mr Cash
Will my right hon. Friend accept that, in relation to my constituency, this project goes from top to bottom and is deeply opposed by all and sundry? I have had meetings with thousands of constituents already. Will he accept that, according to the Public Accounts Committee, the pricing is unrealistic, the values for journey time savings are untenable and there has been insufficient analysis of non-rail alternatives? What answer does he give to the Public Accounts Committee and my constituents, who are deeply angered by this?
Mr McLoughlin
To my hon. Friend’s constituents I say this: I understand that a big piece of infrastructure of the size of HS2 will obviously have an impact. I respect and understand that and do not criticise those people who raise objections. I will move on to talk about compensation later. He talks about an area where we are yet to confirm the route. We will be having a full and proper consultation later this year, when he and his constituents will be able to make those points. I will want to see what can be done to help with some of the environmental points. I also point out that part of the west coast main line runs through his constituency, and it, too, was very unpopular when it was built, but it is very beneficial to the area, because I know that he often takes the train from Stafford to get to London. I will give way once more, to my hon. Friend the Member for Wycombe, but then I will have to make some progress.
Steve Baker
In relation to passenger numbers, my right hon. Friend will know the old aphorism that if one subsidises anything, one gets more of it. Will he remind us how much subsidy the rail industry has received over the past few years?
Mr McLoughlin
One of the things we are trying to do is drive out some of the subsidy in the railways to make it cheaper and more affordable for companies, but it is certainly true that there is subsidy in the rail industry. However, we have to think about people being able to get to work and what that subsidy supports. Sometimes the commuter in London, and the commuter in my hon. Friend’s constituency, deserves that support to enable him to get to the jobs that are available elsewhere. One has to be realistic and understanding about that.
I will now try to make some progress, because I have been speaking for longer than I had intended to take for my whole speech. This is not about a choice between upgrading the existing railway and building a new one. Upgrades will not provide the extra capacity we need. The choice is between a new high-speed line and a new conventional railway. The significant additional benefits make high-speed rail the right answer. Of course, big infrastructure projects are always controversial. As I often say, the easiest thing in the world for the Government to do would be not to build HS2 or to commit to it, but the costs of that would be huge.
It would be a cost in jobs. Our modest estimates indicate that HS2 will create and support 100,000 jobs, while the group of core cities predict that it will underpin 400,000 jobs, 70% of them outside London. It would be a cost in prosperity. Some estimates suggest that HS2 will add over £4 billion to the economy even before it is open. The line is estimated to provide around £50 billion in economic benefits once it is up and running. If we do not go ahead with HS2, there will also be a cost in lost opportunities for the towns and cities in the midlands and the north. I am not prepared to put up with a situation in which someone can get to Brussels on a high-speed train line, but not to Birmingham; to Strasbourg, but not to Sheffield; or to Lille, but not to Leeds. We cannot afford to leave the economic future of our great cities such as Manchester, Birmingham, Leeds, Sheffield, Nottingham and Derby to an overcrowded 200-year-old railway.
Mr McLoughlin
I did say that I would not give way any more, but I shall give way to my hon. Friend.
Geoffrey Clifton-Brown
My right hon. Friend knows, as does the rest of the House, that much of that high-speed European railway was built with European money. How much investigation has he done with the European authorities into how much he might be able to reduce the enormous £32 billion cost of the railway?
Mr McLoughlin
We will be looking at that. I will say a bit more about costs a little later, if my hon. Friend will wait. As always, we will look at how we finance, and not necessarily just in respect of the area to which he has referred. We could see private sector investment in some of the stations that we are going to develop. I will say something more about the stations in a few moments.
We will deliver the investment to develop new stations and growth at places such as Old Oak Common in west London, where we will invest more than £920 million in a new hub linking the west country, Crossrail and HS2. At Curzon Street in Birmingham, we will invest £335 million on station developments. Similar investments are due in Manchester, Leeds and other great railway centres such as Sheffield and the east midlands.
HS2 will also allow for significant improvements to the rail service on the existing main north-south lines, providing benefits for towns such as Milton Keynes, Tamworth and Lichfield. It will provide real scope to get more freight on to the railways, which I would have thought the hon. Member for Brighton, Pavilion (Caroline Lucas) would welcome. It will also free up capacity on the M1, the M6 and the M40.
My second point this afternoon is about the Bill before the House. It will authorise essential expenditure on the preparation work for high-speed rail. Planning and building the line will take time.
Natascha Engel (North East Derbyshire) (Lab)
On the point about this legislation being the paving Bill and agreeing the expenditure before the line gets built, will the right hon. Gentleman assure the House that he will publish the receipts relating to everything spent as we advance to building the line, so that we can assure ourselves annually that the money spent represents value for money to the taxpayer?
Mr McLoughlin
I am about to make exactly that point; obviously, somebody else has an advance copy of my speech.
The line will be overseen and delivered by successive Parliaments, which is why it is right to provide Parliament with the opportunity to debate the project. The hybrid Bill will provide additional opportunities for closer scrutiny of HS2. This is the moment for Parliament to demonstrate that it is backing British business, jobs and growth by backing HS2.
Let me say how the Bill will help achieve those aims. Without this legislation, Treasury rules would limit the amount of work that could be done or undertaken until after Royal Assent on the hybrid Bill. That includes design work on the construction of the line, planning the movement of utilities and carrying out ecological surveys. The legislation will also ensure that future spending on the discretionary property compensation is compliant with the PAC requirements.
Dan Byles (North Warwickshire) (Con)
My right hon. Friend is being generous with his time. From the moment the train line was announced, the property market up and down the route has frozen solid. Unless my constituents can demonstrate an exceptional hardship, they cannot sell their homes and move. I implore the Secretary of State once again to reconsider a property bond as the single most helpful move he could make to help alleviate a lot of the suffering being caused right now, today, by the project.
Mr McLoughlin
I assure my hon. Friend that, if he has a little patience, I will say something about that exact point a little later.
The PAC requirement states that when there is significant new expenditure that is likely to persist, authority should normally be sought from Parliament. I appreciate that many hon. Members have concerns about the authorisation of expenditure on early works in advance of the subsequent hybrid Bill. That is why this Bill ensures complete transparency in what we are doing, when we are doing it and—crucially—how much we are spending.
The Bill creates a duty on the Secretary of State to produce an annual financial report on the amount of expenditure incurred, allowing Parliament to keep a check on the costs and progress. I hope that that answers the point made by the hon. Member for North East Derbyshire (Natascha Engel).
Mr McLoughlin
I will look at the detail of that. I am certainly determined that Parliament should be kept well informed and, of course, the company will be open to the scrutiny of the Public Accounts Committee and the National Audit Office reporting to the PAC. There is a way in which the House can keep an eye on the matter.
My third point is about funding. We can today welcome the allocation made by the Chancellor in infrastructure investment. Tomorrow, the Chief Secretary to the Treasury will say more about our plans. I know that in the context of the Bill, the House will want to be updated on the cost of HS2. I can therefore tell the House that tomorrow I will be writing to the chairman of HS2 Ltd to set a target price for delivering phase 1 of the project. That amount is £17 billion at 2011 prices. That takes account of the design and environmental changes to improve the scheme. Those changes include a tunnel from Old Oak Common to Northolt, design changes at Euston station, and a tunnel under the M6 near Birmingham.
As a responsible Government, we must be prudent, which means allowing the right level of contingency. In addition, therefore, we have set an overall indicative amount for the budget for phase 1 of £21.4 billion. For phase 2, it is £21.2 billion, so the total is £42.6 billion at 2011 prices. That includes £12.7 billion of contingency.
Graham Stringer (Blackley and Broughton) (Lab)
At Prime Minister’s questions this afternoon, I asked the Prime Minister why the Government were opposing the continuation of the trans-European network north of London. The Prime Minister clearly did not have an answer, and I will understand if the Secretary of State does not. However, will the Secretary of State find out why we are opposing the extension of that network? While we are in the European Union, that could be cutting off a source of funding.
Mr McLoughlin
I heard the hon. Gentleman’s question to the Prime Minister. Those debates on that whole process are ongoing and still at an early stage. I have some worries and I would want to get clarification before we changed the Government’s position.
Andrea Leadsom
Will my right hon. Friend explain what the £12.7 billion of contingency will do to the benefit-cost ratio? During the consultation period, it was always made clear that the £32 billion was the absolute maximum and contained a vast sum for contingency.
Mr McLoughlin
At the moment, the value-cost ratio is reckoned to be 2.5. I also point out that the BCR tells us some things, but not everything. For instance, the BCR on the Jubilee line was a lot lower than that for High Speed 2. If the Jubilee line had not been developed, a lot of the development in Canary Wharf would never have taken place. The line brought a huge amount of investment into the area and the country. It is important that we are seen to be able to compete with other countries in the global race to attract businesses to this country. The point also relates to the Olympic games, where a contingency was allowed and in fact the price of the games came in below the budget that had been set by the Government. I expect the final costs to be lower than those I have outlined. However, I take on board my hon. Friend’s point about BCR.
Andrew Bridgen
My right hon. Friend has announced that the total budget for the infrastructure plan will be about £43 billion. Does that include the £8 billion for the rolling stock?
Mr McLoughlin
If my hon. Friend will allow me to make a bit more progress, he will find that I am going to be very open with the House and put all this out into the public domain. I want to be as open as I possibly can.
Mr McLoughlin
I give way to my hon. Friend, who I met yesterday—I think, but the days are getting a bit blurred at the moment.
Christopher Pincher
They are getting blurred for us all. I am grateful to my right hon. Friend for giving way and for yesterday meeting my constituents from Hints, Weeford and Drayton Bassett to discuss their concerns about compensation and mitigation. He has rightly referred to the great concern that people have about the compensation and mitigation that is available. In setting a budget for phase 1, will he prevail on HS2 to be as efficient as possible so that money can be saved and spent on mitigations in Staffordshire?
Mr McLoughlin
The meeting that I had yesterday with my hon. Friend and his constituents was very useful, and I gave them an undertaking to look at some of the points they made. I have had varying reports on how some of the public consultations have gone. I am determined that we improve the way in which they are conducted so that people get more reliable answers on the points they are making, and as quickly as possible, although sometimes these things take a lot of time if particular requests are made as to routes and the like. I thank my hon. Friend for behaving very constructively in the points that he is making.
Michael Fabricant (Lichfield) (Con)
I am grateful to my right hon. Friend for giving way, and pleased to be able to follow the intervention by my hon. Friend the Member for Tamworth (Christopher Pincher). Next week I will be bringing people from Lichfield, Whittington and Armitage to see him to discuss, primarily, mitigation. May I ask him about compensation? He will know that with the current route I will have real difficulties with the hybrid Bill; in fact, I will not be able to support it. The Country Land and Business Association says that this stage of the game is the only opportunity to get compensation into legislation so that we can give it to people in my constituency, and indeed in Tamworth, who have been blighted for the past three years.
Mr McLoughlin
As someone who was born and brought up in Staffordshire, I know the area that my hon. Friends are talking about incredibly well. Without the authority of this Bill, we would be in a very difficult position as regards exceptional hardship. I mentioned earlier some of the requirements of the PAC in relation to accountability in spending money on a project without the approval of Parliament, and that also relates to compensation.
Mr Skinner
The Secretary of State has been dealing with blight, and he mentions Staffordshire, but he also knows Derbyshire well, and he knows a village called Pinxton. I spoke about blight when he made his original statement, and I was staggered to be told within hours by a farmer in Pinxton who was selling his farm that as soon as the statement had been made he was told that he would never sell his farm. How is that farmer going to be compensated?
Mr McLoughlin
I will say a little more about compensation in a moment. I accept and appreciate the hon. Gentleman’s point about the impact of naming the route. At the time of HS1 several routes were announced and there was potentially more widespread blight. In HS2 we have tried to be more specific about the routes so that we avoid widespread blight. However, I also say to the hon. Gentleman, who is well versed in how these things work, that we will be going out to consultation on phase 2—I will be announcing that in the very near future—and that will enable his constituents and those of the hon. Member for North East Derbyshire to make their points, find out more information, and possibly propose alternative suggestions and ideas.
Sammy Wilson (East Antrim) (DUP)
The Secretary of State said that there is a contingency provision of nearly 40% in this project. Is that typical of a project of this size, or does it indicate a higher degree of risk than would usually be associated with such a project?
Mr McLoughlin
It is a normal level of contingency that would be put into a scheme of this sort, and it is built in on an internationally based calculation.
This is the right way to plan for the project. In addition, with or without HS2, new rolling stock will be needed on the key inter-city routes linking London and the north over the next 20 years. I hope that deals with the point raised by my hon. Friend the Member for North West Leicestershire (Andrew Bridgen). We are therefore budgeting £7.5 billion for HS2 rolling stock. To put that in perspective, the current inter-city express programme to replace trains on the east coast and Great Western lines, which is creating jobs in the north east, will cost £4.9 billion. The money that I have just announced for the rolling stock for HS2 also includes a contingency of some £1.5 billion.
Good infrastructure is an investment in economic growth. We are investing £14.5 billion to build Crossrail, while £11 billion has been invested in new infrastructure at Heathrow since 2003. Over the period of construction, the cost of HS2 will be less than 0.15% of GDP—I repeat, less than 0.15% of GDP. This is an investment that the country can sustain and needs. That is why tomorrow the Chief Secretary will set out the detailed HS2 funding allocations for the six-year period until 2020-21.
Before I finish, I want to explain what we are doing for those affected by the line. As I said earlier and have tried to make clear throughout this Second Reading speech, I do not dismiss those with objections as irrelevant. We do indeed need to design HS2 carefully, consult properly and compensate fairly. I hope that I can reassure people about why it is right to go ahead. Some have concerns about the impact of HS2 on the landscape. While I cannot deny that a project of this scale will have an effect, I believe that the positive experience of our first high-speed line in Kent shows that the consequences can be managed without wrecking the countryside. For instance, while not a single mile of the M1 is in-tunnel, about 40 miles of HS2 will be in-tunnel. Of the 12.4 miles that crosses the Chilterns area of outstanding natural beauty, 5.8 miles will be in-tunnel and 3.5 miles will be in deep cuttings. No part of phase 2 of the route crosses any national parks or areas of outstanding natural beauty.
It is also important to ensure that proper compensation is made to those affected by HS2. That is why we have introduced the exceptional hardship scheme although there was no statutory requirement to do so. We believe that home owners already affected with a pressing need to move should have recourse to compensation, but without the authority of Parliament to incur expenditure to continue with this compensation, I would need to consider carefully what other mechanisms, if any, we could use. Very soon, we will start a new consultation on compensation.
Mr Clive Betts (Sheffield South East) (Lab)
I have met some of my constituents in Greasbro road in Tinsley in Sheffield, whose homes will be demolished by the scheme. They accept that to a degree, but they ask me whether it is reasonable that people who, for the greater good of the country, are moving out of a home that they do not want to leave will simply get 100% of the market value, plus home loss. Is there no room for the Secretary of State to be more generous and say to people, “You are doing something for the good of the country. Therefore, you should receive more than 100% of the market value”?
Mr McLoughlin
The hon. Gentleman makes a very good point. We have said that we will go out to consultation. I fully accept that the position of his constituents is slightly different because the consultation, in the first instance, will relate to phase 1. It is not possible to consult on phase 2 until we have confirmed the route, but there will have to be a consultation on that. Given that he is the Chairman of the Communities and Local Government Committee, which has an important role in this area, no doubt his Committee will want to consider the matter.
We will consider a range of compensation options, including a property bond, about which a number of Members have made representations.
In building HS2, we need to ensure that we make the best use of British skills and workers. For Crossrail, 97% of the contracts have been won by British-based companies. From 2017, HS2 will create 19,000 engineering and construction jobs.
Andrew Percy (Brigg and Goole) (Con)
Supporting British jobs is essential. The Secretary of State will know that the finest rail in the world is produced in my constituency at the Scunthorpe steelworks. Will he assure me that he and his Department will do everything they can to ensure that Scunthorpe gets a cut of HS2 and that we see those benefits and jobs in our region?
Mr McLoughlin
I can assure my hon. Friend that I want HS2 to be not dissimilar in this respect to Crossrail, which saw 97% of the business going to British companies. However, I am cautious about awarding contracts and making promises from the Dispatch Box. I am certainly a little more cautious than my hon. Friend was in asking me to do so.
Mr Jim Cunningham
Will the Secretary of State meet a delegation from Coventry, as he suggested he would just before Christmas when we met him to discuss this issue?
Mr McLoughlin
I hope the hon. Gentleman does not mind my pointing out that I met a delegation before Christmas. I have met one delegation and I am happy to have another meeting with the hon. Gentleman on the same issue. I recognise that the council has changed its position and I look forward to his changing his position as well.
Today marks an important milestone in the progress of HS2. We must keep it to time and budget, and minimise the impact on residents, the environment and the landscape. We can do that and we need to do that because HS2 is an engine for growth: growth in jobs, growth in opportunities for business and growth in the global race. HS2 is a project for our generation. Now is the time to make it happen. I commend the Bill to the House.
Maria Eagle
My goodness, I find myself in total agreement with the hon. Gentleman.
Despite the importance of this project, there has been a real lack of drive from Ministers—I am not necessarily talking about the Secretary of State—in taking the decisions and delivering the action needed to make it a reality. The former Labour Transport Secretary Lord Adonis set up HS2 Ltd as long ago as 2009. By August of the same year, he had already confirmed plans for a new north-south rail line because he was a high-speed Secretary of State. Nothing has moved anywhere near as fast at the Department for Transport since he left, except the revolving door that has meant I am facing my third Transport Secretary since the election. I hope very much that the Government reshuffle that is rumoured to be on the cards does not deliver yet another change. I am sure that the right hon. Gentleman will agree with me on that.
Mr McLoughlin
I hear what the hon. Lady says, but she should look at the average length of service of Labour Secretaries of State for Transport—they were also fairly rapid through those doors.
Maria Eagle
It is starting to worry me, when I contemplate my political future, that the average length across the parties of Secretaries of State for Transport appears to be somewhat on the short side. I hope that the right hon. Gentleman, while his Government are still in office, and I can increase the average length of time served.
Mrs Louise Ellman (Liverpool, Riverside) (Lab/Co-op)
I am pleased to support this legislation today, which is a significant step in securing High Speed 2. It is important to recognise that HS2 is about having a vision for the future. It is about making a much-needed step change in capacity on our railways. It is about meeting growing demand for rail, addressing congestion on our roads and motorways, and connecting major cities not just across this country and the UK, but potentially across Europe as well. It has the potential to rebalance our economy.
However, it is very important that progress on High Speed 2 does not go ahead in isolation from considering the importance of continuing to invest in the existing classic line. Existing improvements such as the northern hub and the electrification programmes must continue and be stepped up. Assurance must be given that there will be proper access to high-speed rail, and that means that more attention needs to be given to the siting of the stations and connections to them. It is important that no local services be reduced as a consequence of building the high-speed rail line, and it is extremely important that the potential of developing the freed existing lines for both freight and passengers be addressed. That means that more work needs to take place, perhaps through local authorities and local enterprise partnerships working together, to make sure that proper plans are worked out so that the existing lines freed when high-speed rail comes to fruition will be able to be used to the maximum for freight and for passengers.
It is also crucial that the potential for economic development and rebalancing the economy is achieved. That means that we must not make any assumptions that simply building a high-speed line will automatically bring those economic benefits. Work has to be done, again by the LEPs, with the local authorities and with Government support, to develop economic strategies, regionally as well as nationally, to support business in taking advantage of those opportunities. I was very interested to read the results of studies instigated by local authorities. The Core Cities study put forward by major cities in our country identified about 400,000 new jobs that would come as a result of high-speed rail, and Centro’s report, looking specifically at the west midlands area, identified about 22,000 jobs that would come. I emphasise that none of those jobs will come automatically; we need to give attention to economic strategies and support for business to make sure that those opportunities come to fruition.
A number of important issues must be addressed. Concern remains that under the Bill as proposed, high-speed rail may not go beyond Birmingham. We have heard assurances from Ministers but we need rather more than that; we need a commitment in the Bill to make sure that HS2 is not simply between London and Birmingham, and that the rail scheme progresses to Leeds, Manchester and beyond. The time scale is a very long one, even on the current proposals of 2026 to Birmingham and 2033 to Leeds, to Manchester and to other areas.
Mr McLoughlin
I completely agree with the hon. Lady’s point. I wonder, Mr Speaker whether I might use this intervention to clarify something I said earlier, as I am afraid I gave the wrong figure. I said that the contingency was £12.7 billion but it is actually £14.4 billion, so it is larger than I said. I just wanted to take this opportunity, with your permission and that of the hon. Lady, to put the figure right.
HS2 Phase One Consultations
Lord McLoughlin Excerpts(10 years, 12 months ago)
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The Secretary of State for Transport (Mr Patrick McLoughlin)
The Government have today published two documents for consultation which significantly move forward our work on the HS2 route between London and the west midlands (known as phase 1 of HS2). These are the draft environmental statement and the design refinements consultations.
Publication of the draft environmental statement (ES) is a key step towards delivering the hybrid Bill for the HS2 route between London and the west midlands. The formal ES will be published alongside the hybrid Bill later this year, having been further refined in light of responses to the draft ES consultation.
The draft ES provides, wherever available, information on the likely significant environmental effects of HS2—and our plans wherever possible to mitigate them.
The Government believe that HS2 is vital for this country and will provide a huge economic return. However, I am aware that the building of the railway will cause disruption for those living close to the line of route. I am determined that this disruption should be kept to a minimum and mitigated wherever possible.
Consulting on the draft ES is not a statutory requirement but the Government recognise the importance of ensuring widespread engagement on the scheme. Best design can only be reached with the input of local communities, environmental groups and all levels of Government.
Once the hybrid Bill is deposited, there will be a further period of consultation on the formal environmental statement as part of the parliamentary process.
Alongside the draft ES, I have published a consultation on a series of design refinements for the HS2 route between London and the west midlands. Since we set out our proposed route in January 2012 we have been developing the detailed design of the scheme, listening to the representations from individuals and organisations affected by the route. This refinement process aims to ensure that we design a railway that is as efficient and effective as possible while limiting as far as practicable its impacts on people and the environment.
Many of these proposed refinements are small in scale but some are more significant, altering the local impact of the scheme. To ensure my final decisions on these refinements are informed by the best possible information I have decided to consult on my initial preferences for the more significant changes before deciding whether to include them in the final design of the scheme.
Consultation on both the draft environmental statement and the design refinements closes on 11 July. Consulting on these two documents is part of the process of helping to make HS2 the best it can be, providing passengers with the high level of service they expect while minimising as far as practicable the impact on local communities.
Oral Answers to Questions
Lord McLoughlin Excerpts(11 years ago)
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Chris Evans (Islwyn) (Lab/Co-op)
1. What progress his Department is making on its rail fares and ticketing review; and if he will make a statement.
The Secretary of State for Transport (Mr Patrick McLoughlin)
We are considering a range of options to improve rail fares and ticketing, and we intend to set out our findings and next steps this summer.
Chris Evans
Commuters in Islwyn will pay three times as much as their counterparts in Scotland, whose Government are freezing off-peak rail fares next year. Do this Government plan to do the same here?
Mr McLoughlin
We are looking at a wide range of options for ticketing and, as I said, we hope to report to the House on that in the summer. What we have in place for ticket pricing is exactly the same as under the previous Government.
Andrew Bridgen (North West Leicestershire) (Con)
The McNulty report identified significant costs incurred on our railways compared with those of our European counterparts. Will my right hon. Friend outline what those extra costs are?
Mr McLoughlin
I am keen that the industry learns a lot of lessons from the McNulty report. That important report was set up by the previous Government, although it reported to us, and it has set out ways in which we need to improve the operations of the railways. However, I would point out that there are a number of tickets in this country that are cheaper than those in Europe.
Andrew Gwynne (Denton and Reddish) (Lab)
Given that the National Audit Office has warned that higher rail fares could lead to greater profits for the train companies, why has the Secretary of State caved in to those companies by giving them permission to increase their fares by up to 5% above his so-called cap?
Mr McLoughlin
We have had this argument before. As I have pointed out to the hon. Gentleman and other Labour Members, we are following exactly the same policy as the previous Government—[Interruption.] The hon. Member for Garston and Halewood (Maria Eagle) is shouting from a sedentary position, but they changed it for one specific year. I would point out that the previous Labour Government planned that 70% of costs would be met by fare payers by 2013-14.
Mr Alan Reid (Argyll and Bute) (LD)
If I try to book a train ticket from Glasgow to Sheffield, the cheapest standard single is £108. However, booking three tickets—Glasgow to Preston, Preston to Manchester, and Manchester to Sheffield—is half that cost. There is a whole host of similar examples throughout the network, so will the fares and ticketing review put a stop to such nonsense?
Mr McLoughlin
I want the ticketing review to address several issues. The Minister of State, Department for Transport, my right hon. Friend the Member for Chelmsford (Mr Burns), and I will look at that situation, but I also want passengers to have more clarity about how they can take advantage of some of the cheaper fares that exist.
Mr Philip Hollobone (Kettering) (Con)
Will the Secretary of State look at the cost of rail travel per mile? He will know that, compared with other lines, his and my line—the midland main line, which goes through Kettering—is very expensive for rail travel per mile.
Mr McLoughlin
My hon. Friend is right to say that I know that line particularly well, and I often ask questions about it to find out what is happening over the whole rail network. However, I should point out to him that cheap deals on that particular line can be found.
Barbara Keeley (Worsley and Eccles South) (Lab)
2. What steps he is taking to increase the affordability of bus travel for young people accessing education or training.
Pauline Latham (Mid Derbyshire) (Con)
7. What steps he is taking to reduce sign clutter on roads.
The Secretary of State for Transport (Mr Patrick McLoughlin)
The Government are committed to reducing sign clutter. I recently wrote to English local authorities to encourage them to take action, and I have sponsored an award to encourage the reduction of sign clutter. The Department will be revising traffic sign regulations and general directions to provide local authorities with far more discretion about where and when they place traffic signs.
Pauline Latham
I thank my right hon. Friend for that answer. On a recent visit to Vietnam, I noted that the communist Government there put up propaganda signs all over the place. Similarly, Derby city council puts up signs showing anti-Government propaganda. Does my right hon. Friend agree that that is a terrible waste of taxpayers’ money?
Mr McLoughlin
I, too, regularly see those signs, and one must wonder why we are seeing such signs around Derby city at a time when the council is saying that it does not have enough money for other essential services, and when it has just increased council tax. That is unlike Derbyshire county council, which also serves my hon. Friend’s constituency but has had a 0% rise in council tax. That is an important message for the people of Derbyshire about where money is being spent.
Duncan Hames (Chippenham) (LD)
8. What plans he has for incentives to encourage the take-up of electric vehicles.
Sarah Champion (Rotherham) (Lab)
10. What recent discussions he has had on increasing the motorway speed limit to 80 miles per hour; and if he will make a statement.
The Secretary of State for Transport (Mr Patrick McLoughlin)
Work is continuing to assess the potential economic, safety and environmental impacts of trialling 80 mph speed limits across a number of sites on the motorway network. It is important that decisions are made on the basis of sound evidence, and as part of that I have had discussions with a number of bodies.
Sarah Champion
The Highways Agency proposes to expand its managed motorways programme so that the hard shoulder between junctions 32 and 35A of the M1 will be used as a permanent traffic lane, with the scheme running 24 hours rather than at peak congestion times, as other schemes do. Does the Minister share my concern, and that of local authorities, South Yorkshire safer roads campaign, and South Yorkshire police, that that proposal, especially at 80 miles per hour, will create a real safety issue?
Mr McLoughlin
I am obviously willing to hear any representations about the managed motorway scheme that we are progressing. We have found that where we have managed motorways, we have a better flow of traffic and safer statistics overall for the use of that particular road. These are important matters and I am more than happy to discuss the issue with the hon. Lady. I assure her that we are trying to increase capacity for her constituents and other people who use that very important motorway.
Mr David Nuttall (Bury North) (Con)
But does the Secretary of State agree that retaining a 70 mph limit on our motorways and not strictly enforcing it risks bringing the law into disrepute, and that it would be far better to have an 80 mph limit that is enforced?
Mr McLoughlin
My hon. Friend makes one of the many arguments for an increase. The 70 mph limit was set in 1965, and it is fair to say that, since then, there has been a great improvement overall in road safety, but I want to look at all those issues.
Mr John Leech (Manchester, Withington) (LD)
The human cost in lives, the economic cost of infrastructure changes and the environmental impact of carbon emissions are surely all good enough reasons to rule out once and for all any increase in the speed limit.
Mr McLoughlin
As I said in the replies I have just given, I am not ruling that out—I am looking at it. The hon. Gentleman makes important arguments that go the other way. It is not a straightforward issue.
James Morris (Halesowen and Rowley Regis) (Con)
11. What funding his Department is providing for new train stations; and if he will make a statement.
The Secretary of State for Transport (Mr Patrick McLoughlin)
In March, I made an announcement of three stations that are likely to secure funding from the £20 million new station fund—Ilkeston, Lea Bridge, and Pye Corner. I expect to make another announcement in May. The Government also provide funding to local authorities through the major local transport scheme budgets and the local sustainable transport fund. Those funds can also be used to provide new railway stations.
James Morris
Rowley Regis station in my constituency provides a vital link for commuters into Birmingham and the surrounding area, but the car parking facilities at the station have reached capacity. Will the Secretary of State meet me and Centro representatives to push forward on the vital project to expand car parking facilities so that commuters do not have to park on residential streets?
Mr McLoughlin
Recent research by the Association of Train Operating Companies shows that the number of rail journeys in and around Birmingham has increased by more than 20% in the past five years. It is one of 14 cities to record double-digit growth. In a way, I am not surprised to hear of the problems that that is causing for my hon. Friend’s constituents, and I am more than happy to meet him and Centro to discuss the matter.
Alison Seabeck (Plymouth, Moor View) (Lab)
High-quality transport gateways to our towns and cities are vital in supporting regeneration and growth. Plymouth is a case in point—Network Rail’s buildings there are appalling. Given that Network Rail says that it is more reactive than proactive, what discussions is the Secretary of State having with his colleagues in the Department for Business, Innovation and Skills and the Department for Communities and Local Government to encourage development, and to encourage Network Rail to take commercial advantage of some of its sites?
Mr McLoughlin
That is obviously an ongoing, regular discussion I have with Network Rail. I will visit Plymouth in the next few weeks. That is one of the things I will look at and, subsequently, discuss with Network Rail.
Harriett Baldwin (West Worcestershire) (Con)
T1. If he will make a statement on his departmental responsibilities.
The Secretary of State for Transport (Mr Patrick McLoughlin)
Since I last addressed the House at Transport questions, I have appointed members of the franchising advisory panel. I announced in my last statement that Richard Brown will be the chairman. The other members will be Nicola Shaw, chief executive officer of High Speed 1 Ltd; Stephen Paine, managing director of UK investment banking at UBS; Martin Buck, the commercial director of Crossrail; and Michael Holden, chief executive officer of Directly Operated Railways and chairman of East Coast—[Interruption.] For the benefit of the shadow Leader of the House, Nicola Shaw is on the panel. That panel of experts will meet on a monthly basis and help provide reassurance that the franchising programme is on track, and that the correct governance will be followed.
Harriett Baldwin (West Worcestershire) (Con)
I thank the Secretary of State for the money he has put in for the pinchpoint between the A46 and the M5. In other A46 news, a local village has discovered that fibre optic cable runs along it, and has connected some of the local homes to it. Will the Secretary of State consider asking the Highways Agency to publish information on all roads on the network that have fibre optic cable along them?
Mr McLoughlin
My hon. Friend makes a very good point. It is important that we make proper use of all the infrastructure available, particularly in respect of bodies such as the Highways Agency. My understanding is that the agency makes details of the current fibre optic communication network available to any interested party, but following my hon. Friend’s points, I will speak to the agency and see whether we can do more.
Hugh Bayley (York Central) (Lab)
T2. What help are the Government giving to smaller local authorities away from metropolitan areas, to introduce smart ticketing to make bus journeys more convenient and cheaper, and to get more people on to buses?
George Hollingbery (Meon Valley) (Con)
T3. Will the Secretary of State update the House on any discussions he may have had with the Mayor of London with regard to suburban railway services in the south-east?
Mr McLoughlin
I met the Mayor of London yesterday and had a wide-ranging discussion on many subjects relating to London and other areas. What I have always said is that in principle I have nothing against wider franchising, but I need to see that there is proper accountability. Discussions are ongoing.
Kate Green (Stretford and Urmston) (Lab)
As we approach the spending review, will the Secretary of State give careful consideration to the need to secure funding for the extension of the Metrolink in Greater Manchester through Trafford Park in my constituency?
Mr McLoughlin
I will take that as one of many bids we will receive. I am very keen to invest in infrastructure for the long term, and various local authorities are putting forward a number of schemes. They will all be assessed and judged, and decisions will be made in the light of the resources available.
Ben Gummer (Ipswich) (Con)
T4. The Minister and the Secretary of State will know that the world’s largest financial centre is connected by the great eastern main line to some of the leading centres of research and development in the country, yet commuters and travellers can expect to use rolling stock that was unsuitable for travellers on the west coast main line 10 years ago. The Government have invested heavily in infrastructure. When will they be able to invest in rolling stock, too?
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
May I press the Secretary of State to provide me some evidence? I started off as a supporter of HS2. I attended a seminar in this House this week that predicted that it would cost £50 billion. What is the evidence that this will be a good investment for the towns and cities of the midlands and the north?
Mr McLoughlin
I am sorry that the hon. Gentleman seems to be questioning this. People do inflate figures. I believe that the figures, with which I have been very open with the House, remain as the figures. I believe the changes that HS2 will bring—the first new railway line built north of London in 120 years—will provide an important impetus for economic growth for the United Kingdom.
Miss Anne McIntosh (Thirsk and Malton) (Con)
T5. The A64 is an extremely dangerous and highly congested road serving businesses along the route right through Thirsk and Malton between York, Filey and Scarborough. Will it qualify for a pinchpoint scheme, and what other criteria will it need to meet?
Ian Mearns (Gateshead) (Lab)
The east coast main line has returned £640 million to the public purse since 2009. Sadly, private ownership has failed the travelling public of the east coast franchise. What possible public benefit can be gained by another wasteful and expensive round of refranchising, when east coast is already where the vast majority of the public want it, in public ownership?
Mr McLoughlin
I point the hon. Gentleman to what was said by the last Labour Transport Secretary, the right hon. Member for Tooting (Sadiq Khan) who now sits on the Opposition Front Bench. It is worth pointing out that National Express paid £185 million in 2007-08, £145 million in 2008-09 and £8 million in 2009-10, which is when the franchise ended. The way that the track excess charges were calculated was then changed, so direct comparisons are not valid.
Sheila Gilmore (Edinburgh East) (Lab)
In answer to an earlier question from my hon. Friend the Member for Rotherham (Sarah Champion), the Secretary of State said that he made decisions based on evidence. Why is that not being applied in relation to the east coast franchising, given that we have had two failures of the private sector and now experience of a good service?
Mr McLoughlin
The evidence was supported by the fact that we have seen huge growth in the railways since privatisation 20 years ago. Since then, there have been 13 years of Labour Government, and they did not reverse it—in fact, they enhanced and pushed forward the franchising. The last Labour Secretary of State said that franchising was a good thing. I believe he was right and that passengers benefit from it.
Pauline Latham (Mid Derbyshire) (Con)
T8. Will my right hon. Friend update the House on the dreadful congestion on the A38, particularly around the Markeaton and Little Eaton roundabouts in my constituency? It is causing misery to my constituents and Derbyshire residents.
Mr McLoughlin
I think that my hon. Friend lives close to the Little Eaton island and I live close to the Markeaton island, so we both know of the regular delays on that very important road. On the pinchpoint funds, I am pleased that we will see some improvements this month—as she will know, work has already started on preparing the site for those improvements. I have met the leader of Derby city council, and I know that my hon. Friend has met the Roads Minister, my hon. Friend the Member for Wimbledon (Stephen Hammond). We are looking at this issue, but it is a very big scheme.
Ian Lavery (Wansbeck) (Lab)
Two weeks ago, Lord Adonis published a report on the north-east local enterprise partnerships suggesting that political consideration should be given to the extension of the Tyne and Wear metro into south-east Northumberland. Will the Secretary of State agree to meet me and interested parties to discuss that possibility and other possibilities for railway links from south-east Northumberland into the cities of the north-east?
Mr McLoughlin
I am pleased that the hon. Gentleman is calling Lord Adonis in support; other people were attacking what he did when he was Secretary of State. I am aware of the report and was in the north-east a few months ago. I am happy to meet the hon. Gentleman to discuss some of the important points within that report.
High Speed Rail
Lord McLoughlin Excerpts(11 years ago)
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The Secretary of State for Transport (Mr Patrick McLoughlin)
I am today publishing supplementary information regarding the consultation on an exceptional hardship scheme for phase two of high speed two. I am also extending the exceptional hardship scheme consultation period until 20 May 2013.
On 28 January I announced the Government’s initial preferred route, station and depot options for phase two of HS2. Alongside this I set out for consultation an exceptional hardship scheme (EHS). The EHS is intended to enable owner-occupiers whose property has reduced in value as a result of the route announcement—and who can demonstrate a need to sell their property—to sell it to the Government at its full un-blighted market value.
We always welcome feedback on our proposals for HS2 and in response to some such feedback we have decided to publish further information to supplement the consultation document that we published in January.
The additional information we are publishing consists of:
A summary of the more significant feedback that we have received on the operation of the EHS that is already in place for phase one of HS2, and our responses to those points;
Data about the operation of the EHS for phase one; and
A study of property blight around the phase one route in the six months immediately following the announcement of the proposed route.
We are also taking the opportunity to clarify some of the terminology used in the consultation document; and about how the scheme’s criteria are applied.
We have published this information on HS2 Ltd’s website and will be making printed copies of this information widely available in libraries, Citizens Advice Bureaux and at local authority customer service departments along the line of route for phase two. We will also advertise it in newspapers. HS2 Ltd will be writing to those who have already responded to this consultation to make them aware of this additional information and the extension of the deadline for responding to the consultation. I have placed a copy in the House Libraries.
The Government are committed to delivering a compensation scheme that is fair and appropriate both to those directly affected by HS2 and to taxpayers. We have been clear all along that we want to get compensation to the people who need it as quickly as possible and this remains our intention.
Subject to the outcome of this consultation, it is still our intention to have an exceptional hardship scheme in place for phase two in the summer of this year.
Rail Franchising
Lord McLoughlin Excerpts(11 years, 1 month ago)
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The Secretary of State for Transport (Mr Patrick McLoughlin)
With permission, Mr Speaker, I wish to make a statement about the future of our railways. It is a positive future. It is almost 50 years ago to the day since Dr Beeching published his report. No one would have imagined then, or even 20 years ago, when the Government privatised the railways, which were still in decline, that the industry would now be booming. Traffic has doubled since privatisation, from 750 million journeys a year to 1.5 billion now. There are more services and record levels of investment, and our railways have the best recent safety record in Europe. That has not been achieved despite privatisation; it has been achieved because of privatisation.
Today I am setting out a programme that can achieve even more, because our country has to compete for jobs and growth. We need a transport system that is second to none, so we are spending unprecedented sums on infrastructure, such as Crossrail, the biggest construction project in Europe, and the northern hub cross-Manchester link, which will transform services across the Pennines. In return, it is right that we demand more from the industry, because for the money that passengers and taxpayers are putting in, we should expect ambition, innovation and even better performance for passengers. This is the way we are going to get it.
Last year, serious and unacceptable mistakes were made when it came to refranchising the west coast main line, but I have put in place a new structure and process in the Department, as the Laidlaw report recommended. In January, I announced our initial proposals for the three franchises most immediately affected: Great Western, Essex Thameside and Thameslink. Today I can confirm that I am accepting the next stage of the findings of the Brown review of rail franchising. I am also pleased that Richard Brown has agreed to chair a new franchise advisory board. I am publishing its terms of reference today. The Brown review called for a full refranchising programme to be announced by the end of April. I am pleased to be announcing it today.
I want to be as open as possible with the market, which is why I am publishing a prior information notice to set out not just the programme for franchising, but the way in which franchises will be let and the benefits they will bring. In doing so, I have applied three principles: first, that the passenger gains; secondly, that the rail industry thrives, with growing companies and new competitors coming into the market; and thirdly, that the taxpayer gains, through a more efficient use of public money and less waste in the industry. Those three principles are essential points on which the future of our railways rests.
Let me turn in detail to what I am announcing today —a programme that will give great improvements to the passenger, certainty to industry and a fair deal to the taxpayer. It will provide stability, so that we can invest more, and flexibility, so that different routes with different demands can be managed in different ways. The programme will also give fair weight to passenger satisfaction, which has not always been respected as it should have been, with long-term franchises that can run for up to 15 years if operators meet the standards they promise at the start. To ensure a competitive market, we will hold no more than three to four competitions a year, starting with a smaller number as the programme gets up to full speed and extending up to 12 current franchises to give certainty to passengers and allow the full programme to get under way.
There are those who would like our railways to go back to the days of state ownership, decline and under-investment. They are wrong. I share the view of the last Labour Government, who said that franchising worked. In 2009, Ministers brought in Directly Operated Railways on the east coast as a short-term stand-in. They did what was needed in difficult circumstances, but the east coast main line, upgraded in the 1980s, now needs revitalising. New trains, to be built in the north-east, are now on order. Now is the right time to invite bidders to put forward proposals for investing and improving those services. This will be the first of the new inter-city franchises to be awarded in 2014 in a programme that meets my three essential principles of better service, better competition and better value.
I wish to make one final point. The Beeching report was about closures and cutbacks, but its 50th anniversary tomorrow sees an industry marked by growth, not decline—investing in High Speed 2 for the future, as well as providing better services today. That is why I am pleased to announce the front runners in our fund to open new stations. They are Lea Bridge in Walthamstow, Pye Corner in Newport West and Ilkeston in Erewash. I expect to announce further winners soon. I commend this statement to the House.
Maria Eagle (Garston and Halewood) (Lab)
I thank the Secretary of State for advance sight of his statement. He inherited a Department in crisis and a rail franchising system in chaos. I acknowledge that he has had to work hard to try to put things back on track. He has rightly reversed many of the decisions of his two predecessors, not least by restoring some of the key posts in the Department that had recklessly been axed by them. We welcome the speed with which the right hon. Gentleman has worked with Richard Brown and his departmental officials to put together the plans he has set out today. However, it is also true that his revised franchising timetable has exposed the full impact of the failure of his predecessors, all of whom either remain in the Cabinet or have been promoted to it.
The Great Western contract will be awarded in July 2016—three years and three months later than planned. The west coast contract will not be awarded until April 2017—four years and four months late. Some competitions are to be delayed by as much as 50 months—not five months, but 50—yet instead of focusing on the chaos in franchising caused by his Government’s incompetence, the Secretary of State has decided to embark on an unnecessary and costly privatisation of the east coast inter-city services—a privatisation due to take place weeks before the date of the next general election.
The right hon. Gentleman hinted that investment was dependent on that happening, but will he acknowledge that the planned investment in the east coast main line, to be delivered by Network Rail, and the new generation of inter-city trains will happen regardless of this privatisation? Is it not the case that Directly Operated Railways has reinvested all of its £40 million profit in the east coast service on top of the £640 million paid to Government, with every pound of profit going back in for the benefit of passengers? That profit will, under the Secretary of State’s new plans, be shared with shareholders in future. Instead of talking down the current operator of the east coast, will he join me in praising the team there for the work they have done, and think again about his plans?
Will the Secretary of State update the House on the latest cost of the franchising fiasco, not least since his Department appears to be facing legal action from several more train operating companies? Will he correct the claim in his Department’s press notice today that this is the first time that a full franchise timetable has been published? I have with me the previous full timetable that was inherited from the previous Government and republished by his Government. Does he accept that what has changed is simply the fact that all the competitions have now been delayed?
The Secretary of State has also changed the proposed order of the competitions, leading in some cases to very long extensions to existing contracts. What is his thinking behind that decision? Will he clarify the role of the new franchising advisory board that Richard Brown recommended in his review and is now to chair? The first version of the written ministerial statement this morning stated that it would be a cross-industry body and that it would support bidders, but the corrected version appears to have dropped those claims. What, then, is it to do exactly?
What has happened to the Government’s previous enthusiasm for devolution? Will the right hon. Gentleman update the House on discussions with transport authorities covering the Northern and TransPennine franchises and services in the midlands? Does he still anticipate devolving responsibility at the revised start date for these franchises? Have the Government given further consideration to the calls from the Mayor of London and Transport for London for devolution of the remaining former Network SouthEast services?
For the sake of passengers, taxpayers and those working across the rail industry, the whole House wants to see us get beyond the problems of the past year. I wish the Secretary of State well in doing that, but I urge him to focus his efforts on getting back on track the bits of the system that need fixing, rather than those that do not.
Mr McLoughlin
I thank the hon. Lady for her response to my statement. It was not quite as warm as that of the CBI, Passenger Focus or the British Chambers of Commerce, which were much fuller in their acknowledgement of our putting the future for the rail industry so clearly.
The hon. Lady has obviously forgotten what the last Labour Secretary of State, the noble Lord Adonis, said on 9 February 2010:
“The Government believe that the ability of private sector operators to attract more passengers, grow the market, improve the service and receive revenue benefits of such actions is a key element in the current franchise model and one of the reasons for the significant growth delivered in recent years.”—[Official Report, House of Lords, 9 February 2010; Vol. 717, c. WA122.]
It is certainly true that we are talking about a huge growth in rail traffic and rail transportation, with people relying on the railways. I could go on to quote—but I know you prefer shorter answers, Mr Speaker—the right hon. Member for Tooting (Sadiq Khan), who occupied my position before the last general election, as he praised the role of franchising.
I believe that the east coast line should be the first under the new system. I pay tribute to the work done by Directly Operated Railways, which has operated it, but when the hon. Lady talks about figures, she should look at the track access charges paid in control period 3 by National Express when it ran the east coast line. It paid £210 million in track access charges, whereas DOR now has to pay its track access charges of £92 million. [Interruption.] I can tell the shadow Leader of the House that that was paid in the year to which I referred.
That explains why we have set out a very clear set of proposals about where we are going, notifying the industry about the future, which I think is a bright one, and setting out the huge investment that we—and, indeed, Network Rail—are putting into the rail industry.
Mrs Cheryl Gillan (Chesham and Amersham) (Con)
It is evident from today’s announcements that the Secretary of State’s Department will be under a great deal of pressure to deliver a vast programme of infrastructure projects. That pressure has obviously been intensified by the west coast main line franchise failure and of course the recent judicial review failure on the consultation process for HS2. Given those failures, what reassurances can the Secretary of State give us that his Department is still not overstretched and under-resourced?
Mr McLoughlin
I am grateful to my right hon. Friend for what I think was support at least for what I am doing on franchising. She talks about judicial reviews, but it is fair to say that of the 10 judicial reviews on HS2, the Department was found not to be wanting in nine cases. Only one judicial review went against us, and I am fully prepared to accept it. I wish the protesters, too, would accept the decisions made by the courts.
I can assure my right hon. Friend that my Department has the resources, and I am mindful of what Sam Laidlaw said in his report about what needed to be put into operation, and we have done that. I think that the Government’s setting up of the franchising advisory board was important—I am sorry that I failed to respond to the hon. Lady’s point about it earlier. It will report directly to the Government and to my advisory board on how the franchises are doing. I am sorry that a mistake was put out in one of the earlier press notices.
Thomas Docherty (Dunfermline and West Fife) (Lab)
I am disappointed that there has been no mention of the word “fares” in any of the statements so far. Will the Secretary of State clarify what he will do to bring down fares, and what he will do about staffed ticket offices?
Mr McLoughlin
I think the hon. Gentleman will know that we are undertaking a full review of fares. That will report later this year, probably in June; the date may move a bit, but I hope it will report in June. He will make his points on fares during that review. However, I would point out that, on a number of routes, cheap fares are available if people book in advance.
Mr John Leech (Manchester, Withington) (LD)
By deciding to refranchise the east coast main line, we risk not being able to assess whether the public sector or the private sector is best for the passenger, the taxpayer and the railways in general. Surely as a minimum, therefore, we should allow Directly Operated Railways to bid for the franchise.
Mr McLoughlin
That is not the case—Directly Operated Railways is not a company in its own right; it is a company owned by the Department for Transport. We will certainly be able to see how the companies are doing. The process will be open. I have already seen reports, although I have not had it confirmed, that Virgin will put in a bid for the east coast main line, and a lot of people were very happy with the service they received on the west coast main line.
Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)
On that very point, given that Directly Operated Railways is owned by the Department for Transport, surely the Secretary of State could instruct Directly Operated Railways to put in a public sector comparative bid so that we can judge who will provide best value for money and best value for the customers.
Mr McLoughlin
I would just point out to the hon. Gentleman, who has been in the House some time, that he was very happy to support a Government whose Secretary of State said:
“I do not believe that it would be in the public interest for us to have a nationalised train operating company indefinitely”. —[Official Report, House of Lords, 1 July 2009; Vol. 712, c. 232.]
I agree.
Mr Stewart Jackson (Peterborough) (Con)
The east coast main line is integral to the economy of Peterborough, and my constituents are concerned about value for money, punctuality and cleanliness. The Secretary of State rightly mentions the PAC report, which found that this Government inherited systemic lack of leadership and of oversight, miscalculation of risk capital and failure to heed legal advice. Is he absolutely convinced that, in respect of the east coast main line, we have learnt those lessons and that mistakes will not be made again?
Mr McLoughlin
I can certainly assure my hon. Friend that we have learnt a number of lessons as a result of what happened with the west coast franchise. I well understand the importance to his constituents of the service that is provided on the east coast main line. It will be one of the first lines to get the new intercity express programme trains, which are due to come into service in 2018-19.
Pat Glass (North West Durham) (Lab)
As a north-east MP, I have been approached by a number of the companies that hope to bid for the east coast line, all of which are backed by foreign countries. Why does the Secretary of State think that it is not okay for the Government to run British railways, but it is okay for the French, German and Dutch to run them?
Mr McLoughlin
I think I pointed out clearly in the statement the vast growth we have seen in the railways. I do not think that that would have happened without privatisation. We have seen levels of investment that were not seen beforehand. I point out to the hon. lady the simple fact that I inherited the system of franchising that operated under the previous Government.
Mr Rob Wilson (Reading East) (Con)
I thank my right hon. Friend for his statement. Can he give a bit more detail on how he will increase competition and improve efficiency on the railways?
Mr McLoughlin
Reading station, in my hon. Friend’s constituency, has seen a major refurbishment. That will make a huge difference. There will be closures over Easter, but more platforms will open and the work at the station will conclude in two years. About £800 million has been invested. We would not be investing that kind of money if we were not getting a good return for the passenger, his constituents and those who are served further along that line by First Great Western.
Hugh Bayley (York Central) (Lab)
Passengers on the east coast main line have twice suffered the catastrophic collapse of a private franchise. What guarantee can the Secretary of State give that whichever company gets the new franchise will not collapse, and will the railway headquarters remain in York?
Mr McLoughlin
As for where the headquarters will be, that will depend on the case that is put forward by the various companies that I hope will compete for the franchise. The hon. Gentleman is right: two franchises collapsed under the previous Government, so that and this Government have both had some problems with franchising. I hope we have learnt our lessons. The rail industry has become a lot better at competing for these franchises.
Martin Vickers (Cleethorpes) (Con)
The Secretary of State rightly spoke of the innovation and ambition that he expects from the new franchise companies. Can he assure me that that innovation and ambition will extend to providing services off the east coast main line, most notably to Cleethorpes?
Mr McLoughlin
I am certainly willing to discuss in greater detail with my hon. Friend the services to his constituency, which I know have been very badly disrupted because of earth movements, which must be put right; the work is taking longer than we would have hoped.
Graham Jones (Hyndburn) (Lab)
The Secretary of State says that success on the railways has been achieved because of privatisation. The rolling stock in east Lancashire must be among the worst in the UK—it is absolutely dreadful. Privatisation has certainly not worked. The northern franchise is coming up, so what will he do to ensure that my constituents and others in east Lancashire benefit from that success?
Mr McLoughlin
A lot of rolling stock has been and is being ordered. I hope to see a roll-out to all areas, including the hon. Gentleman’s constituency.
Iain Stewart (Milton Keynes South) (Con)
I very much welcome the statement as a sensible way forward for franchising, but may I urge my right hon. Friend to use the temporary extension of the west coast franchise to urge Virgin and London Midland to work together temporarily to ease overcrowding on services from Euston, in the evening peak at least, until the full franchise is let and London Midland’s new train order comes through?
Mr McLoughlin
I am grateful to my hon. Friend, who follows this subject particularly closely, not just for his constituents but as a member of the Select Committee on Transport. I know that he sent me and my right hon. Friend the Minister of State, Department for Transport a fairly comprehensive letter, which I hope to respond to shortly, and I will see what can be done.
Ian Mearns (Gateshead) (Lab)
This morning, a statement by the Secretary of State’s own company, Directly Operated Railways, on the east coast main line said:
“Since 2009, the East Coast business has been transformed. The Company has returned more than £640 million in cash to the taxpayer”.
That is not because of privatisation, but because the public sector bailed out the private sector. There is huge support for continued public ownership. The private sector has already let down the travelling public on this route twice. Why risk it again when we are returning so much money to the taxpayer?
Mr McLoughlin
I was simply referring to what was said by the Secretary of State in the previous Government. It was a short-term measure. By putting out the franchise to the private sector, there will be better services. That is what I am interested in. I am not particularly interested in who owns it. I am interested in getting better services to the hon. Gentleman’s constituents, who want to take advantage of them.
Nigel Mills (Amber Valley) (Con)
Although I welcome the new station for Derbyshire, can the Secretary of State assure me that it will not be serviced at the expense of two other stations on that line, namely Alfreton and Langley Mill?
Mr McLoughlin
I think that that was a welcome for the new station and for the greater investment. Of course one always has to strike a balance when these cases are put forward, but I think that Ilkeston, Derbyshire county council and my hon. Friend the Member for Erewash (Jessica Lee) made a strong case for why Ilkeston should be successful. The case was judged by a panel that did not include me, and I am very pleased that Ilkeston has been successful.
Julie Hilling (Bolton West) (Lab)
So much for the Government’s grand promises to radically change franchising—only three franchises will be let before the next election. Some of the extension periods are enormous, following the extensions that operators have already had. What guarantees has the Secretary of State had that there will be investment by those companies during the extension periods?
Mr McLoughlin
I can assure the hon. Lady that there will be investment during those periods. In anything where I negotiate directly in awarding contracts, I look at the way services can be improved, and I hope to be able to make a statement shortly on some of those particular services.
Tracey Crouch (Chatham and Aylesford) (Con)
The Secretary of State will be aware that Southeastern is consistently one of the worst performing and most expensive train operating companies in the country. Can he therefore explain why it has been given the longest extension—50 months? Can he assure my constituents that the extension is not a reward for failure? What opportunity will passengers have to engage in the process of direct awards as it is finalised?
Mr McLoughlin
None of these direct awards will be made without getting the maximum we can out of the companies, talking to them and getting improvements in services. Where there have been let-downs, I will certainly want the companies concerned to address those problems.
Kelvin Hopkins (Luton North) (Lab)
May I suggest to the Secretary of State that there is indeed a public sector comparator for Britain’s railways: the nationalised railway systems on the continent of Europe? McNulty found that they are up to 40% cheaper to run than ours. We have the highest fares in Europe and a ballooning public subsidy. Is not keeping the railways in the private sector just driven by ideology and a desire to put public money into private pockets?
Mr McLoughlin
I am somewhat surprised—I am not sure whether the hon. Gentleman was expressing support for the McNulty recommendation that we should take costs out of the railways. I did not expect such support from the hon. Gentleman, but any help I can get, I am always happy to bag.
Stephen Gilbert (St Austell and Newquay) (LD)
The First Great Western franchise runs old trains with no wi-fi, and often no food, through run-down stations. Commuters in Cornwall and Devon would welcome average-speed rail, let alone high-speed rail. What can the Secretary of State do to push investment in this route before July 2016?
Mr McLoughlin
I know the hon. Gentleman was unable to attend my meeting with First Great Western because of other engagements. I am very keen to improve services, particularly in his part of the country. I am going there in a little while to look at those services first hand, and I will certainly pass on the representations he has made when I have discussions with First Great Western—and Network Rail, as both are involved.
Mr Mike Weir (Angus) (SNP)
Can the Secretary of State give a cast-iron guarantee that any east coast main line franchisee will at the very least be obliged to retain the existing level of service north of Edinburgh through my constituency to Aberdeen?
Jason McCartney (Colne Valley) (Con)
I welcome the certainty today’s statement brings and the opening of the east coast main line franchise. Can my right hon. Friend confirm that passenger gain will be at the forefront of the franchising process?
Mr McLoughlin
I assure my hon. Friend that we are going to take passengers’ views very much into account in this system. That has not happened before, and today Passenger Focus has welcomed that development. It is part of the judgement that we must make when considering whether franchises are achieving their targets.
Katy Clark (North Ayrshire and Arran) (Lab)
Is the Secretary of State aware that tomorrow, to mark the 50th anniversary of Beeching, passenger groups and trade unions will demonstrate outside 80 railway stations against privatisation and job losses? Will he protect passenger safety and rule out job losses on the railways?
Mr McLoughlin
I am not sure the hon. Lady was listening to my statement. I pointed out that we have had a better safety record on our railways in the past few years than for a number of years, and we are one of the safest rail operators in Europe. Jobs have been created as a result of more people using the railways. Privatisation has doubled the number of people using the railways. I would have expected the hon. Lady to welcome that, and unions to be out welcoming it too.
Priti Patel (Witham) (Con)
In the light of the 27-month extension that has been given to the Greater Anglia franchise, what improvements to services will be appended to the existing franchise as a condition, so that local commuters see improvements to the service before the next franchise comes up?
Mr McLoughlin
I am grateful to my hon. Friend, who, along with colleagues from the Greater Anglia area, have given me a pamphlet setting out the changes being made. The Minister of State, Department for Transport, my right hon. Friend the Member for Chelmsford (Mr Burns), does not lose an opportunity to tell us how we must improve the services used by not only my hon. Friend’s constituents, but his.
Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)
The Secretary of State’s response to my hon. Friend the Member for York Central (Hugh Bayley) was disturbing. He said that he was not bothered who would run the franchise or where they came from, and could not confirm where such a company would be headquartered. Can he not use the tendering process to ensure that these details are nailed down and that the headquarters are in the United Kingdom?
Mr McLoughlin
I fear that the hon. Gentleman is taking me out of context. What I said was that my main concern is the service to the passenger, which I care very much about and want to see improve. The location of the headquarters will be up to the individual franchisees when they put their case forward, and they may make strong representations.
Mr Philip Hollobone (Kettering) (Con)
The Secretary of State and I, and our constituents, use the midland main line. Will he confirm when the franchise is up for renewal, and will he allow prospective bidders to come forward with proposals for new electric trains, instead of the Department insisting that they use recycled trains from other lines?
Mr McLoughlin
The date of the new contract for East Midlands will be mid-way through 2017, and a direct-operated tender deal will come to fruition in 2015. I hope my hon. Friend accepts that the fact that electrification of that line is included in next set of Network Rail works shows our commitment to it. I know how important—
Mr McLoughlin
The hon. Lady says that, but the process starts in 2014, which is in this Parliament. I can assure her that 2014 will be in this Parliament, not the next Parliament, in which case we will be electrifying that line.
Mr Speaker
Before she attends to her next pressing commitment, let us hear from Catherine McKinnell.
Catherine McKinnell (Newcastle upon Tyne North) (Lab)
Thank you, Mr Speaker. I agree with the Secretary of State that if our country is to compete on jobs and growth, we need a transport infrastructure that is second to none. Can he therefore reassure me that today’s announcement is in no way driven by the view expressed by the chief executive of the North Eastern local enterprise partnership that there is no need to invest in north-east transport, and that he does not share that view?
Mr McLoughlin
There is every need to invest in transport across the United Kingdom, and LEPs have a very important role to play. I have not seen the exact quote, and I should like to see it in context.
Heather Wheeler (South Derbyshire) (Con)
I congratulate my right hon. Friend on today’s statement, particularly the great news about Ilkeston station, which will immediately transform and regenerate the area by providing connectivity. Is this the new dawn for the National Forest line—the old Ivanhoe line; can we look forward to that, too?
Mr McLoughlin
I am sure I will hear a lot more about the Ivanhoe line from my hon. Friend. I am pleased that she welcomes the opening of the station at Ilkeston, along with the other two stations I have announced today. There will be further work on that, but she is right: the fact that I, as Transport Secretary, have appeared at the Dispatch Box today is a reflection of Members wanting more services. That is why it is so important that we get the investment levels right and the train companies operating the kind of services passengers want.
Diana Johnson (Kingston upon Hull North) (Lab)
Can the Secretary of State confirm that the open access slot on the east coast main line will still be available to services such as Hull Trains and will not be rolled up in any franchise tender document?
Duncan Hames (Chippenham) (LD)
Wiltshire’s passenger rail offer stands to benefit from a multi-million pound grant from the coalition Government’s local sustainable transport fund. Now that the future of the franchise is clear, what is the Secretary of State’s advice to the promoter, Wiltshire council, and to First Great Western? Is it more “wait and see”, or that they should now get on with it?
Mr McLoughlin
I think I would need a bit more notice before answering that question. If my hon. Friend writes to me, I will look at the issues in more detail. [Interruption.] The Under-Secretary of State for Transport, my hon. Friend the Member for Lewes (Norman Baker), says, “Just get on with it.”
Henry Smith (Crawley) (Con)
I very much welcome my right hon. Friend’s statement. Thameslink and Southern Railway recently announced new rolling stock to operate from the four stations within my constituency. Can he assure me that the changes to rail franchising announced today will not affect the delivery of that rolling stock?
Mr McLoughlin
It certainly should not affect the delivery of the new trains. I know of no reason why it should and if I am wrong, I will obviously write to my hon. Friend.
Penny Mordaunt (Portsmouth North) (Con)
Portsmouth’s experience of franchises awarded under the last Government was that the rolling stock was downgraded from the agreement. When will passenger comfort and service standards be written into the agreements, to ensure that passengers have access to a toilet and that commuters are not crippled by suburban rolling stock being used on main line routes?
Mr McLoughlin
I am very disturbed to hear what my hon. Friend says, and I will certainly look into her points and get back to her in more detail in the very near future.
Stephen Mosley (City of Chester) (Con)
There have been massive improvements on the west coast main line since privatisation and Virgin, but one way to improve things in the future—to continue improving competition and to keep down costs—would be by encouraging more operators to enter the market. Is there anything in my right hon. Friend’s statement that would encourage open access operators to come in on more existing services?
Mr McLoughlin
There are some open access services, to which the hon. Member for Kingston upon Hull North (Diana Johnson) referred, on the east coast main line. I believe that applications for other open access services are with the Office of the Rail Regulator at the moment. I am happy to look at those and act on advice when I get it from the rail regulator.
Mark Pawsey (Rugby) (Con)
Rail users in Rugby will welcome the Secretary of State’s announcement about the Virgin franchise being extended on the west coast main line. Will he reassure my constituents that an extra 29 months will be enough to encourage Virgin to continue to invest in the railway?
Mr McLoughlin
I know that Virgin is keen to continue with investments on that line and is happy to receive representations, both from my hon. Friend and from me, if good cases are made for investment that has a positive return.
Rehman Chishti (Gillingham and Rainham) (Con)
I thank the Secretary of State for his statement. May I also thank him for reducing train fares in the south-east by reducing the retail prices index plus 3% provision to RPI plus 1%? Under the previous Government, Southeastern had RPI plus 3% whereas the rest of the country had RPI plus 1%, and that was exceptionally unfair.
Mr McLoughlin
I am grateful to my hon. Friend for that. The truth is that we are putting massive further investment into the railways. That has to be paid for by both the fare payer and the taxpayer, but it is right that we try to get that balance right. I am pleased that the Chancellor was able to take the increases down to RPI plus 1%, not only for this year, but for next year.
Mr Marcus Jones (Nuneaton) (Con)
I welcome my right hon. Friend’s statement and his intent to put the interests of passengers at the heart of rail franchising. The best interests of rail passengers in my constituency would be served by the reinstatement of fast off-peak services to Nuneaton, which were taken away by the previous Labour Government in 2008. Will he come to Nuneaton and meet me to discuss this vital issue at greater length?
Mr McLoughlin
I am certainly more than happy to meet my hon. Friend at Nuneaton station. I believe that a date is going in my diary this afternoon—if it was not already, it will be now.
Dr Thérèse Coffey (Suffolk Coastal) (Con)
Suffolk commuters will be disappointed by the delay, although they are used to it as passengers, even though things have improved under Abellio. Will my right hon. Friend assure me that this will not deter or delay the needed investment in the freight line from Felixstowe to Nuneaton?
Mr McLoughlin
The announcements I have made today will have nothing to do with the freight line. Again, I make the point to my hon. Friend that we are seeing not only an increase in passenger numbers, but a huge increase in the amount of freight using our railways—I believe that the figure is about 60%. I know that most colleagues and the general public welcome that very much.
Mr Speaker
Order. Questions from 34 Back Benchers were answered by the Secretary of State in 25 minutes of exclusively Back-Bench time, which is an impressive record. Might I suggest that rather than sending his ministerial colleagues an Easter egg, the Secretary of State should send a DVD of the statement and the exchanges on it, which will be a great example for them to follow in the future?
Rail Franchising
Lord McLoughlin Excerpts(11 years, 1 month ago)
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The Secretary of State for Transport (Mr Patrick McLoughlin)
This morning I have announced to the stock market our long-term plans for rail franchising. This plan is designed to drive improvements to rail services, deliver on major infrastructure projects, and put passengers at the heart of a revitalised rail franchising system.
In addition to publishing a detailed timetable for all rail franchises over the next eight years, I am announcing the immediate start of the competition for the east coast franchise, currently directly operated, with the expectation the new franchisee will carry its first passengers by February 2015.
The new programme will provide long-term certainty to the market and support the delivery of the Government’s £9.4 billion rail investment strategy for 2014-19. The future competitions will also place passengers in the driving seat by ensuring that their views and satisfaction levels are taken into account when deciding which companies run our railway services.
In rolling out the programme the Department for Transport will work closely with the industry to negotiate further new services and more capacity in all franchising contracts while delivering the best deal for both passengers and taxpayers.
Delivering on Brown review recommendations, the new programme will provide a more sustainable schedule for rail franchising by delivering no more than three to four competitions per year, and staggering the two principal inter-city franchises, west coast and east coast, so they will not be let at the same point in the economic cycle.
In order to roll out the programme and stagger future competitions, it will be necessary to exercise a number of contractual extensions with current operators and to negotiate a series of direct awards with current operators. During these discussions the Department will look to negotiate further passenger benefits, which will ensure the best deal for tax payers. As a result, I will later today be serving notice on First Capital Connect and Southeastern to call seven period extensions available in their contracts.
The new franchise programme is set out below:
Franchise (Operator) | Owning Group | Current Franchise Expiry Date | Duration of Franchise Extension and/or Direct Award | Start Date of New Franchise |
|---|---|---|---|---|
Essex Thameside (c2c) | National Express | May 13 | 16 Months | September 14 |
Thameslink (First Capital Connect) | First Group | September 13 (FCC) | 12 months (FCC) | September 14 (FCC) |
& | & | & | & | |
Southern (Merge to become Thameslink, Southern and Great Northern) | Govia | July 15 (Southern) | n/a (Southern) | July15 (Southern) |
East Coast | Directly Operated Railways | n/a | n/a | February 15 |
Northern | Abellio/Serco | April 14 | 22 months | February 16 |
TransPennine (TransPennine Express) | First Group/Keolis | April 15 | 10 months | February 16 |
Great Western (First Great Western) | FirstGroup | October 13 | 33 months | July 16 |
Greater Anglia | Abellio | July 14 | 27 months | October 16 |
InterCity West Coast (Virgin Trains) | Virgin/Stagecoach | November 14 | 29 months | April 17 |
London Midland | Govia | September 15 | 21 months | June 17 |
East Midlands (East Midlands Trains) | Stagecoach | April 15 | 30 months | October 17 |
South Eastern (Southeastern) | Govia | April 14 | 50 months | June 18 |
Wales and Borders (Arriva Trains Wales) | Arriva | October 18 | n/a | October 18 |
South West (South West Trains) | Stagecoach | February 17 | 26 months | April 19 |
Cross Country | Arriva | April 16 | 43 months | November 19 |
Chiltern | Arriva | December 21 | n/a | December 21 |
In my statement of 31 January I announced that the Thameslink, Southern and Great Northern would be a management style contract due to the level of investment and change on the route. For Great Western, our plan is to put to market a competed management contract in 2016. We will further develop this proposition in the light of experience with the Thameslink competition, which has similar infrastructure challenges, and will give consideration to the capacity in the market closer to the date.
In order to oversee this ambitious programme the Government are also announcing the formation of a new cross-industry Franchise Advisory Panel, headed by Richard Brown, which will provide independent advice and support to both bidders and the Department during the procurement process.
In addition, following an industry consultation, I will today, publish a revised policy statement under section 26 of the Railways Act. This has been updated to reflect current franchising policy and completes a Brown review recommendation.
All the relevant documents will be published on the Department for Transport website. Copies will be made available in the Libraries of both Houses.
Search and Rescue Helicopter Services
Lord McLoughlin Excerpts(11 years, 1 month ago)
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The Secretary of State for Transport (Mr Patrick McLoughlin)
On 28 November 2011 the Department for Transport started a competition to procure search and rescue helicopter services to replace the joint capability provided by the Royal Air Force, Royal Navy, and Maritime and Coastguard Agency (MCA). The procurement process has now finished, and I wish to inform the House of the results.
I am pleased to announce that a £1.6 billion contract has been signed today to provide a search and rescue helicopter service for the whole of the UK with Bristow Helicopters Ltd. I would like to recognise the very high quality and the maturity of the bids provided by the two companies who reached the final stages in this vital competition for an emergency service in the UK. In buying such an important service that protects the safety of individuals in our maritime industries and in dangerous conditions on land and around our coastline, it is vital that we had a robust competition with credible and thoroughly developed propositions from industry. I am confident that we did. I am equally confident that the contract we are entering into with Bristow Helicopters Ltd represents the best solution for the UK over the next 10 years.
This contract represents a major investment by the Government in providing a search and rescue helicopter service using the most up-to-date helicopters and meeting the highest professional standards. Operations will commence progressively from 2015 and the service will be fully operational across the United Kingdom by summer 2017.
The contract will enable the RAF and Royal Navy to withdraw from search and rescue activities in the UK and retire their fleet of Sea King SAR helicopters. It will also ensure service continuity when the current contracted MCA service expires. Services under the new contract will operate from 7 to 10 years and will be managed by the Maritime and Coastguard Agency.
Experience of front-line operations has informed the military decision that the skills required for personnel recovery on the battlefield and in the maritime environment can be sustained without the need for military personnel being engaged in UK search and rescue. I want to pay tribute to the outstanding service personnel who have displayed such enduring commitment and bravery in RAF and Royal Navy search and rescue squadrons. The service they have provided for over 70 years has been exemplary and the country owes them all an enormous debt of gratitude. The decision to cease military involvement in search and rescue in the UK was not made lightly. But with the Sea King nearing its 40th year of service, the time has come to change the way the service is provided and the aircraft used.
The Maritime and Coastguard Agency, and its predecessor bodies, has 30 years experience of operating contracted search and rescue helicopter services using civilian aircrew. The existing MCA search and rescue contracts have delivered services of the very highest standards, and highly skilled civilian crews have won numerous awards for their bravery and dedication.
Bristow Helicopters Ltd is a UK company which has 36 years experience of providing search and rescue services in the UK, including 24 years with the MCA. The company has received numerous awards for SAR missions its civilian crews have undertaken, including chief coastguard’s commendations, coastguard rescue shields, the Prince Philip helicopter award and the Queen’s commendation for a mission in which 60 seamen were rescued.
Bristow Helicopters Ltd has completed more than 44,000 search and rescue operational hours in the UK and conducted over 15,000 missions, during which more than 7,000 people have been rescued by their crews.
The new service will operate a mixed fleet of 22 state- of-the-art helicopters from 10 locations around the UK. Sikorsky S92 helicopters will continue to be based at the existing MCA bases at Stornoway and Sumburgh, and at new bases at Newquay, Caernarfon and Humberside airports. AgustaWestland AW189 helicopters will operate from Lee on Solent, Prestwick airport, and new bases at St Athan, Inverness and Manston airports. All bases will be operational 24 hours a day. These base locations are strategically placed near areas with high SAR incident rates and will help ensure maximum operational coverage across the UK while reducing transit times to incidents.
This combination of aircraft and base locations will provide a world-class search and rescue capability. Helicopters will be able to reach a larger area of the UK search and rescue region within one hour of take off than is currently possible, and based on historic incident patterns we estimate that there will be an overall 20% improvement in flying times, with the average flight time reducing from 23 minutes to 19. Presently, approximately 70% of high and very high risk areas are reachable within 30 minutes. Under the new contract, approximately 85% of the same areas are reachable within this time frame.
The new contract will see the creation of over 350 new jobs. The AW189 will be assembled at AgustaWestland’s factory in Yeovil and Sikorsky plans to locate a supply hub in the Aberdeen region that will support not only the UK SAR programme but also Sikorsky’s large fleet of helicopters in the region serving the important offshore oil sector. The contract will have a significant impact on the UK supply chain, providing and sustaining jobs and apprenticeships.
The safety of professional mariners, aviators, all those travelling by sea or air, and all of those enjoying our seas, coasts and mountains for business or leisure is of paramount importance. This new contract, which will match or exceed our existing search and rescue capability, will ensure that this country’s search and rescue helicopter service will be the standard bearer, both in Europe and beyond.
GLA Transport Grant
Lord McLoughlin Excerpts(11 years, 1 month ago)
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The Secretary of State for Transport (Mr Patrick McLoughlin)
Following consultation with the Mayor of London, I have today determined the GLA transport grant for 2013-14 at £1.988 billion.
This grant is provided by the Government to Transport for London to deliver transport services and investment in the capital, including London Underground.
In line with my predecessor’s 20 October 2010 letter to the Mayor “Spending Review 2010: TfL funding agreement” £894.960 million of this grant is designated an investment grant to support delivery of the tube upgrade programme and other projects, as set out in annex B of the 20 October letter, and the remaining £1.09 billion is for the purposes of TFL.
EU Transport Council
Lord McLoughlin Excerpts(11 years, 1 month ago)
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The Secretary of State for Transport (Mr Patrick McLoughlin)
I attended the first Transport Council of the Irish presidency (the presidency) in Brussels on Monday 11 March.
The Council held a debate on the proposal for a directive of the European Parliament and of the Council on the interoperability of the rail system—part of the Commission’s fourth railway package. The aim of the proposal is to address concerns about significant delays and costs associated with vehicle authorisation that can occur in some member states (although this is not a problem within the UK). The proposal would also make a key change to the process for the authorisation of rail vehicles in the EU. It is proposed that this activity is only carried out by the European Railway Agency instead of by the national safety authorities within each member state. I noted that while there were clearly problems with the authorisation process which merited consideration, these were not causing particular problems in the UK. I suggested that the rail undertaking could be given a choice to go to either the national authority or the European Rail Agency for approval of rolling stock.
The Council also debated the recently published legislative proposal that would require member states to make available adequate infrastructure for alternative fuels. I welcomed the proposal and supported work to harmonise technical standards for alternative fuels, but noted that a technology neutral approach was needed.
The presidency reported on progress at official level discussions on the air safety reporting on occurrence. The Commission stated that the aim of the proposal was to provide a more efficient and uniform occurrence reporting system, focused on improving safety which would enable personnel in safety critical roles to freely report incidents without fear of recrimination.
Under any other business, the Commission gave an update on its “Stop the Clock” proposal on the aviation ETS directive. This proposal which is in the final stages of adoption, aims to facilitate a global agreement on tackling emissions from aviation at the General Assembly of the International Civil Aviation Organisation (ICAO) in September 2013.
EU Transport Council
Lord McLoughlin Excerpts(11 years, 2 months ago)
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The Secretary of State for Transport (Mr Patrick McLoughlin)
I will attend the first Transport Council of the Irish presidency (the presidency) taking place in Brussels on Monday 11 March.
There will be an introductory discussion on the proposal for a directive of the European Parliament and of the Council on the interoperability of the rail system within the European Union (recast) (part of the fourth railway package). The UK is keen to hear the range of views and will then need to further consider the impacts through consultation with our stakeholders.
There will be an exchange of views on a proposal for a directive of the European Parliament and of the Council on the deployment of alternative fuels infrastructure and on a communication from the Commission on “Clean Power for Transport: A European alternative fuels strategy”, making up the clean power for transport package. The UK strongly supports the transition to cleaner transport and has the ambitious vision of almost every car and van reaching zero CO2 emission levels at the tailpipe by 2050.
While I recognise that alternative fuels infrastructure is an area that can benefit from support, I am not convinced that setting rigid, mandatory targets for the deployment of technology-specific infrastructure is an effective way of building consumer confidence in new technology.
A progress report will be provided on a proposal for a regulation of the European Parliament and of the Council on occurrence reporting in civil aviation amending Regulation (EU) No. 996/2010 and repealing directive 2003/42/EC, Commission Regulation (EC) No. 1321/2007 and Commission Regulation (EC) No. 1330/2007. I fully support this proposal and welcome the progress that has been made.
Under any other business, the Commission will provide information on the aviation emissions trading scheme (ETS) and on the EU-Brazil comprehensive air transport agreement.