West Coast Rail Franchise

Lord McLoughlin Excerpts

Thursday 6th December 2012 Commons Chamber

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

With permission, Mr. Speaker, I shall make a statement on what went wrong with the west coast franchise agreement and what we are doing to put things right.

I shall begin by updating the House on the Laidlaw inquiry, and on the decisive action that we are taking in response. I shall then inform the House of the new deal with Virgin Trains—including an enhanced service—that will begin this weekend. My approach to all this, from the start, has been to come to the House to explain the situation openly, quickly and clearly, and it is in that spirit that I make my third statement on the subject today.

Let me deal first with the Laidlaw inquiry. On 3 October, I announced the cancellation of the competition to run the inter-city west coast franchise because of the discovery of unacceptable flaws in the process run by the Department for Transport. As I explained to the House on 15 October, I launched two independent inquiries. I asked the first inquiry body, led by Sam Laidlaw, to look into what happened and why, and I am publishing Mr Laidlaw’s final report today. I asked the second body, led by the Eurostar chairman, Richard Brown, to focus on any lessons to be learnt for the purpose of future rail franchising. That inquiry is well advanced, and I expect to receive Mr Brown’s report by the end of the year. I shall publish it after that. I have placed a copy of Mr Laidlaw’s final report in the Vote Office, and I am placing a copy of my Department’s response to it in the Library. I do not hide from the seriousness of his findings. They make extremely uncomfortable reading for the Department. What happened caused serious problems for bidding firms, including FirstGroup, which was in no way at fault. Action must, and will, be taken.

Let me turn to the detail. Mr Laidlaw confirms much of what he first touched on in his interim report. He finds that the Department wrongly calculated the amount of risk capital bidders would have to offer to guarantee their franchise proposals against default, and he says that these incorrect figures were varied in ways that were wrong. Significantly, he also states for the first time that Ministers made the original 14 August provisional award without being told about the flaws and after being given “inaccurate reports”.

Mr Laidlaw also confirms that if his recommendations on strengthening the organisation are acted upon quickly, the Department will be able to do its job correctly in the future. There is nothing in the report to suggest that the flaws discovered in this franchise competition existed in other procurements in the Department.

Finally, Mr Laidlaw confirms that he has seen no evidence of bias against Virgin. He also offers a clear prescription, which we are already acting on. The Department will ensure that all future franchise competitions are delivered with a clear timeline, rigorous management and the right quality assurance. We will also create a simpler and clearer structure and governance process for rail franchise competitions. That will include the appointment of a single director general with responsibility for all rail policy and franchising, and we will ensure that we have the right mix of professional skills inside the Department and, where necessary, from professional external advisers.

I thank Mr Laidlaw for carrying out such a comprehensive review to such a tight timetable. Any specific personnel issues resulting from what has gone on are—and must, of course, remain—for the permanent secretary.

Secondly, let me turn to the future of the west coast main line. In all my actions, I have put the service to passengers first. That is why I am pleased to tell the House that my Department has negotiated terms with Virgin Rail Group to allow Virgin Trains to continue running the west coast service for up to 23 months. Our intention is to run a full competition for the longer term franchise to follow on from that.

The terms we have negotiated with Virgin secure a continued service for passengers at the same levels they enjoy today, and in some cases better. The timetable that was already agreed for December 2012 will operate, and today the last of the 106 Government-funded Pendolino carriages comes into service. That will allow more trains and longer trains on this vital route. That timetable includes a new hourly service between London and Glasgow.

I also want to see more improvements, including the introduction of new services from London to Blackpool and Shrewsbury. Subject to Virgin securing the track access rights to provide them and to our completing a value-for-money assessment, I hope that both of these new services will be introduced from December 2013.

The Laidlaw inquiry has told us that changes to the Department’s governance and structure are needed. We are carrying them out, and we have a new deal for the west coast main line. This has been an extremely serious issue for my Department and for the civil service, but I am determined that we learn the lessons and get on with the job we are here to do. With our commitment to High Speed 2 and the increase in capital spending on roads announced by my right hon. Friend the Chancellor of the Exchequer this week, the Government are committed to improving our transport network and backing our railways. I commend this statement to the House.

--- Later in debate ---

[Mr McLoughlin]

I had hoped that I had given the hon. Lady adequate time to read the report, but it seems that I did not. First, I will deal with her points about Ministers. I refer her to page 44, where paragraph 4.118.2 says that

“inaccurate statements were made to the then Minister of State in writing as to the manner in which the CAC”—

the contract award committee—

“had approached the SLF sizing process in respect of First’s bid at its meeting on 27 June”.

If inaccurate information was given to Ministers, a fact stated in the report, Ministers would have acted in good faith on the information they were given.

May I also make the point that is made on page 63 of the report? It states that

“in implementing substantial cost savings required by the Government’s spending review in 2010, the DfT significantly reduced its headcount, the number of contractors used and its use of external consultants.”

Mr Laidlaw goes on to say:

“That is not to say however that, with appropriate escalation…of the issues, sufficient resources could not or would not have been found.”

There was no significant escalation of the issue, so I think there is truth in that.

A number of parts of the report refer to the Minister of State, the Secretary of State, the Prime Minister and the Under-Secretary of State for Transport, my hon. Friend the Member for Lewes (Norman Baker), asking questions and I am afraid that there was a damning failure by the Department that must be put right. The hon. Lady says that I seek somehow to blame three civil servants. I have never, in any of the statements I have made in the House or privately, mentioned the names of any civil servants. That is a matter for the permanent secretary. We now have the HR report and the permanent secretary is considering that and what will happen in the future. I would have hoped that the hon. Lady would welcome that.

The hon. Lady talks about the position with First Great Western and its contract to run its railway line. May I remind her who negotiated that contract? It was inherited by the Government and was not our contract at all. If she feels that there are any problems with it, then excuse me but it is not the responsibility of the Government. She asked a specific question about the second year of the contract with Virgin Trains and I will write to her with the answer.

[David Mowat (Warrington South) (Con)]

The Secretary of State read two quotations from the report, which both implied to me a severe organisational failure. Did Laidlaw have anything to say about the position of the permanent secretary in all this?

[Mr McLoughlin]

As I think I said to my hon. Friend when I made my first statement on this matter, there are obviously serious questions to answer. The present permanent secretary took his post in April, when many of the incidents to which we are referring had already taken place.

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

The Secretary of State acted decisively when he became aware of these issues, but the standing of the Department has been severely damaged by this episode. Three franchises were postponed and the £40 million is simply the first stage of the cost to the public purse. What lessons does the Secretary of State take from this incident for future ministerial responsibility?

[Mr McLoughlin]

I am grateful to the hon. Lady and I know her Committee will see Mr Laidlaw and no doubt others during their deliberations on this subject. There are a number of lessons not just for Ministers but for the civil service as a whole and on closer reading of the report they become apparent. I hope that this sort of episode will not happen again to any Government.

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

The Secretary of State will be unsurprised to hear me welcome the news about direct services to Blackpool. Does he agree that any infrastructure investment is only as good as the economic planning by local stakeholders? Will he encourage local councils and the local enterprise partnership to meet local MPs urgently to discuss how to take advantage of that announcement and not wait until December 2013 to decide what to do about it?

[Mr McLoughlin]

I am grateful to my hon. Friend, particularly for the way in which he has campaigned for this service. I know that he will be pleased by the intention I have announced today. As I have said, it is an intention and is not absolutely tied down as there are a few processes to go through. Given the way in which he has shown leadership, I very much hope that he gets that message across to the stakeholders involved so that we can make progress.

[Sir Gerald Kaufman (Manchester, Gorton) (Lab)]

Is it not clear that the right hon. Gentleman is doing his very best to clear up an appalling mess that he inherited from his predecessor? Although of course matters of personnel in his Department are, as he says, the responsibility of the permanent secretary, the overall administration was the responsibility of his predecessor and it is unacceptable that she complacently remains a member of the Government having left this expensive mess. I am travelling up to my home in Manchester this afternoon. What am I to say to the excellent train crew who will be looking after me and all the other passengers about the security of their jobs, in which they have the right to be confident and which has been left in total dubiety by what happened before the Secretary of State took over?

[Mr McLoughlin]

I think I am grateful for the conservative way in which the right hon. Gentleman made his point. What he can say to the crew on the west coast main line is that both this Government and, in fairness, the previous Government have invested huge amounts of public money in that line—some £9 billion. I am glad to be able to say today that we have completed the delivery of the 106 new Pendolino carriages to show our support for that line. I hope that my announcement today and the fact that I have not done what I initially said I would do, which was a short-term contract, then a medium-term contract, gives train crew security and that they can work with their company for the future franchise.

[Daniel Kawczynski (Shrewsbury and Atcham) (Con)]

I was disappointed with the shadow Secretary of State for Transport. When we called Sir Richard Branson into the House of Commons, he and his officials specifically stated that they had first raised concerns about the bidding process with the Labour Government and Lord Adonis. I welcome the announcement of a direct service for Shrewsbury. My hon. Friend the Member for The Wrekin (Mark Pritchard) and I have long campaigned, along with other Shropshire MPs, for this vital service for Shropshire, which will be a great boost for tourism and business for Shrewsbury, the county town. When we finally have that service I will invite the Secretary of State to join me on the train from Shrewsbury to London and I will buy him a drink on that journey.

[Mr McLoughlin]

My hon. Friend is getting into the Christmas cheer a little early. He, along with my hon. Friend the Member for The Wrekin (Mark Pritchard), have been vociferous in making the case for a service to Shrewsbury and other stops on the way. There is still work to be done, but I very much hope we can get that service by December next year.

[Derek Twigg (Halton) (Lab)]

I have not seen the report so perhaps the Secretary of State can answer this question. He refers to the risk capital that bidders had to put forward as a guarantee and says that Laidlaw said that Ministers were not told about the flaws after being given inaccurate reports. What questions did Ministers ask about the capital that bidders would have to offer to guarantee the bid?

[Mr McLoughlin]

I was not in those meetings, for obvious reasons, but I know that Ministers were constantly probing. Mr Laidlaw saw the former permanent secretaries at the Department—not just the present one, but the former ones—and spoke to former Ministers there too.

[Graham Evans (Weaver Vale) (Con)]

I welcome the Secretary of State’s decision to award an interim franchise to Virgin Trains, as this provides a great deal of stability for passengers up and down the country. Will he join me in paying tribute to the Virgin staff on that line, who throughout this very difficult time have always acted with great professionalism?

[Mr McLoughlin]

I had a meeting just the other day with some disabled people. They sang the praises of Virgin Trains as providing some of the best services to disabled people. I was pleased to be able to pass that message on to Sir Richard Branson when I met him yesterday.

[Mr Mike Weir (Angus) (SNP)]

The Secretary of State said that the Brown report would look at the lessons learned for future rail franchises. Perhaps the biggest lesson is that the whole system is a shambles, but given that the report is due shortly, what process does he have in place for taking account of its lessons in the negotiations with Virgin for the franchise in the immediate future?

[Mr McLoughlin]

The truth is that what both Governments have recognised about franchising is that it has brought massive passenger growth on the railways and the railways have flourished since franchising has taken place. The hon. Gentleman asks me to say what implications the Brown report will have for franchising. I think I had better wait till I receive it before I answer.

[Simon Wright (Norwich South) (LD)]

I welcome the degree of transparency that Ministers have brought to these matters. What plans is the Secretary of State making to foster a culture in which admissions of fault are freely made in the Department and processes paused and rectified where necessary? Is it not right that if mistakes are found, hands must be held up?

[Mr McLoughlin]

I am pleased that my hon. Friend welcomes the transparency that I have demonstrated today. I hope I do not have to do it too often.

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

Edinburgh is served by both the west coast main line and the east coast main line services, and between the two there have been three occasions in recent years when the franchise process has gone wrong. Given that the Government will have to sort out the franchise system, not just for the west coast main line, would it not make sense now to decide to keep services on the east coast main line operated by the current operator and allow it to get the benefits of closer co-operation with Network Rail, rather than force it to go through a franchise process again?

[Mr McLoughlin]

The hon. Gentleman is jumping to too many conclusions at the start. When the previous Government brought in Directly Operated Railways to run the east coast main line, they made it very clear that they would want to move to a franchise process and re-let the franchise, and that is certainly the position that this Government take.

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

The welcome announcement of extra capacity and services on the west coast main line drives a coach and horses through one of the prime reasons for High Speed 2, which is to reduce overcrowding on the WCML. Given the stark warnings of the Laidlaw report, particularly chapter 7, which identifies failings in the capability and capacity of the Department for Transport, how can anyone trust the Department with what will be the largest peacetime spend on a project? Is it not time the Secretary of State took another brave decision and consigned this poorly managed, ill-conceived and increasingly thinly justified project to the waste paper basket?

[Mr McLoughlin]

My right hon. Friend is vociferous on this issue on behalf of her constituents. She is asking me to prejudge announcements that I will make next year. The Chancellor of the Exchequer made it clear yesterday that we will be moving forward with HS2. I look forward to welcoming her to the Department next week.

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

Further to the previous question, will the Secretary of State clarify whether there are any implications for the value-for-money exercise that was carried out on High Speed 2 and, if there are, whether he will be asking the civil service to go back over them again?

[Mr McLoughlin]

That is a valid question, but of course, as I have said, this is a franchise exercise that went wrong. High Speed 2 is a capital project that I think will benefit the United Kingdom and our long-term capacity. No railway line has been built north of London for over 100 years, so it is about time we increased capacity.

[Nigel Mills (Amber Valley) (Con)]

The Secretary of State said that there were no implications from the Laidlaw report for any other procurement in his Department, but the interim findings clearly set out that there were concerns about the Department’s management structure and the quality assurance process. Is he still confident that there is no need to review the Thameslink rolling stock contract to ensure that no mistake was made in it as well?

[Mr McLoughlin]

I can assure my hon. Friend that I have of course looked at that situation. I believe that the contract that was announced some time ago will be coming to a conclusion in the near future.

[Bill Esterson (Sefton Central) (Lab)]

The failure of the franchising system, at a cost of £40 million, compares with how the east coast franchise has been taken in-house, saving nearly £200 million. Is it not time that consideration was given to bringing the west coast franchise, and every other franchise, back in-house in line with the successful model used for the east coast franchise?

[Mr McLoughlin]

I think the hon. Gentleman, in a rather convoluted way, has called for the renationalisation of the railways. That is certainly not something this Government will do. If he can convince his Front Benchers that that might be the right way forward, we will be interested to see that development.

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

I very much welcome the additional services and carriages that the Secretary of State has announced. In addition, both Virgin and FirstGroup pledged in their bids significant long-term enhancements to services on the west coast main line. Whatever conclusions are reached following the Brown report, will he ensure that these additional benefits are still secured for passengers?

[Mr McLoughlin]

I am sorry, but I missed the last part of my hon. Friend’s question. I know that he, as a member of the Transport Committee, will continue to press for a very good service through his constituency.

[Gregg McClymont (Cumbernauld, Kilsyth and Kirkintilloch East) (Lab)]

The Secretary of State will be aware that the three civil servants suspended over this fiasco have this morning been reinstated. What does that say about the judgment of leading officials and Ministers in the Department for Transport, and can he elaborate on the reinstatement?

[Mr McLoughlin]

Staffing is a matter for the permanent secretary, who received the Stow report, which dealt with human resources. The suspensions took place as a precautionary measure while the report was being produced. Obviously, consequences will flow from the permanent secretary receiving that report, and those will become public in due course.

[James Duddridge (Rochford and Southend East) (Con)]

I congratulate the Secretary of State on the decision on the west coast main line, but has he considered the Essex Thameside franchise and whether C2C should be given a similar concession?

--- Later in debate ---

[Mr McLoughlin]

I am waiting to receive the Brown report, which will, I hope, take us further on lessons to be learned for future franchising. I will be most insistent on passengers receiving the services that they are currently getting, and, where possible, an enhanced service.

[Ian Lavery (Wansbeck) (Lab)]

Has the Transport Secretary assessed the potential for running the west coast main line under public ownership and what the benefits might be?

[Mr McLoughlin]

I believe that the way in which the west coast main line is run by Virgin has been very popular with Members, not on the Government Benches but on the Opposition Benches, who have announced their intention to support that franchise.

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

I thank the Secretary of State for the speed with which he has dealt with this and the integrity that he has shown throughout in dealing with this difficult problem. My constituents are still seeing much needed improvements, with extra carriages and the line to Blackpool, but I hope he will forgive me if I remind him that Fleetwood remains a town with a railway line but without a railway service.

[Mr McLoughlin]

I do not mind my hon. Friend reminding me of that, and I know that he will do so on many occasions when he gets the opportunity. I look forward to having discussions and conversations with him about how we can possibly improve the situation in which his constituents find themselves, but I hope that he welcomes the fact that the line has come part of the way to his constituency, if not yet all the way.

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

The west coast main line is of huge importance to the Scottish economy, as it carries half a million passengers a year along its whole length for business and tourism purposes. What assurances has the Secretary of State received this morning from Virgin trains about whether the 248 workers who are employed by the company in Scotland will have security in their jobs for the future?

[Mr McLoughlin]

I am not responsible for the personnel decisions of Virgin trains, but I am sure that the hon. Gentleman will make representations to the company. I hope he welcomes the fact that I have announced today the completion of 106 new Pendolinos and the hourly service to Glasgow, which are substantial improvements in this service for people in Scotland.

[Mr Philip Hollobone (Kettering) (Con)]

May I praise my right hon. Friend for launching these inquiries so soon after he took office? However, while Parliament holds Ministers to account, who holds the Sir Humphreys to account? There is a stink about this process among the permanent secretariat in our civil service. What has happened to the previous permanent secretary in the Department—is he or she still in the civil service? Is the current permanent secretary going to take any responsibility?

[Mr McLoughlin]

My hon. Friend says that Parliament holds Ministers to account. In fact, it is not only Parliament that holds Ministers to account, because that also happens through the Select Committee procedures, on which I will certainly not lecture my hon. Friend, and that applies to permanent secretaries and officials as well. There will undoubtedly be other reports not only by the Transport Committee but by other Select Committees and by the National Audit Office. Various reports will come out on this subject.

[Chris Williamson (Derby North) (Lab)]

Will the Secretary of State agree to meet staff representatives through their trade union to discuss and consider the ongoing uncertainties and concerns about this contract?

[Mr McLoughlin]

I am always happy to meet various bodies, and if the hon. Gentleman puts a proposal to me I will certainly consider it.

[Mr Marcus Jones (Nuneaton) (Con)]

I congratulate my right hon. Friend on using the interim finance to bring forward further service improvements on the west coast main line. He will know that we are meeting next week to discuss some of these issues, but will he take my comments as a bid for the return of some of the Virgin off-peak services that the previous Government took away from Nuneaton in 2008?

[Mr McLoughlin]

My hon. Friend has just given me a taster of what our meeting next week will be about. I will no doubt have a better explanation for him then. He has been a very strong voice for Nuneaton in trying to get extra facilities for his constituents.

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

It is now clear what a complete shambles this whole affair has been and how much time and money has been lost. Fast, frequent and reliable trains are critical to the Greater Manchester economy, but with nearly three years’ delay until the new franchise comes on track, vital investment decisions will put the reliability and speed of this service at risk, which our economy can ill afford. How will that be addressed and where will the money come from for this much needed investment?

[Mr McLoughlin]

I welcome the hon. Lady to this place. I am sure she will be a prominent speaker on transport issues over the years to come. I would point out to her that the levels of investment that we are putting into the railways are as impressive—if not more so, given the financial situation the country finds itself in—as what the previous Government put in. I met council leaders in Manchester a few weeks ago and talked about a huge amount of investment that is going into the Manchester area. I have already mentioned the completion of the Pendolino trains, and the purchase of new carriages will enhance the service for her constituents and the people of Manchester.

[Mark Pritchard (The Wrekin) (Con)]

I welcome the Secretary of State’s statement, particularly the announcement that a new direct rail link from Shropshire to London will start from next December. I pay tribute to him and the Minister of State for all their work. I also pay tribute, in a cross-party spirit, to the hon. Member for Telford (David Wright) and to my right hon. Friend the Member for North Shropshire (Mr Paterson), my hon. Friend the Member for Ludlow (Mr Dunne) and my hon. and dear Friend the Member for Shrewsbury and Atcham (Daniel Kawczynski) for all their work. In the ongoing discussions with Virgin, could the important Shropshire market town of Wellington and the important town of Telford also be considered for the timetable?

[Mr McLoughlin]

I did not actually announce the confirmation of that service, but I very much hope that it will be confirmed. I accept my hon. Friend’s bid for it to stop at other stations on the way, but we will just have to see what progress we make.

[Glyn Davies (Montgomeryshire) (Con)]

When the direct line from Euston to Shrewsbury was withdrawn, it was a huge blow to the whole of central Wales—to the tourism industry, the economy and the travelling public. Will the Secretary of State accept my constituents’ appreciation of the fact that that direct link has been restored by today’s announcement, a full two years before it would have been if the FirstGroup bid had gone ahead? Will he also join me and my hon. Friend the Member for Shrewsbury and Atcham (Daniel Kawczynski) on the first trip, on which I will buy coffee for both of them?

[Mr McLoughlin]

By the sounds of it, we will have a full train on that particular trip. I had better talk to my right hon. Friend the Chief Whip to make sure that the timetable is conducive to the House’s sitting times.

[Jason McCartney (Colne Valley) (Con)]

I remind my right hon. Friend of the chaos, cost and uncertainty that resulted from the east coast main line collapsing not just once, but twice under the previous Government. With that in mind, will he update the House on the progress of that franchise?

[Mr McLoughlin]

I am grateful to my hon. Friend for rightly pointing out that mistakes and things that go wrong in franchising are not new and that they have happened in the past. As I said, I am awaiting the Brown report, which will tell us about future franchising and will be an important part of our debate on it.

[Mark Pawsey (Rugby) (Con)]

The Secretary of State’s decision today will provide welcome stability to the many users of the west coast main line in my constituency. I know that they will be pleased to be able to continue to travel on Virgin trains. I welcome the fact that, under the interim contract, he is not just maintaining the status quo, but providing improvements, such as a new direct service to Rugby from Scotland for the first time since 2008.

[Mr McLoughlin]

I am grateful to my hon. Friend for welcoming the new services. The simple fact is that the train operators are very much aware of the demand for new and regular services. As anyone who has witnessed today’s statement will know, we are coming under increasing pressure to expand them and certainly not to decrease them.

[Mr Peter Bone (Wellingborough) (Con)]

On behalf of the House, may I thank the Secretary of State for coming here for the third time to make a statement on this matter? In all my time in the House, this has been a unique experience. For the first time, something has gone wrong in a Department and a Minister has had the courage to come here to admit it and to do something about it. I have never seen that before. With regard to his former role, will the Secretary of State encourage other Ministers to do the same thing?

[Mr McLoughlin]

I think Ministers are always ready to hold up their hands when something goes wrong. We need to be straight with the British people. I would not have expected such applause from my hon. Friend, bearing in mind the occasional crossed words that we may have had when I was in my previous role.

Inter-city West Coast Franchise

Lord McLoughlin Excerpts

Thursday 6th December 2012 Written Statements

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

On 15 October 2012, Official Report, column 6WS, I announced to the House that following the cancellation of the inter-city west coast franchise competition the Department for Transport was commencing negotiations with Virgin Rail Group (VRG).

I can today announce that negotiations have concluded successfully and that Virgin trains will continue to operate services on the west coast main line.

After careful consideration I believe taxpayers, rail passengers and the wider rail industry will be better served by moving directly from this agreement with VRG to a longer-term franchise on the west coast main line. Doing so will provide greater certainty for passengers, minimise disruption for all stakeholders and enable us to maximise the benefits for taxpayers and west coast passengers. For this reason the new franchise with VRG will be for up to 23 months.

I am also pleased to announce that passengers will not only experience the same levels of service they have previously enjoyed but will also benefit from improvements to previous levels.

In addition this agreement coincides with the successful completion today, on budget and ahead of schedule, of a project to deliver 106 new Pendolino carriages on to the west coast main line.

The new carriages, which will see up to 28,000 extra seats provided each day, are being introduced with £1.5 billion of Government support.

Under the new franchise agreement, there will also be a new hourly service between London and Glasgow.

This franchise will operate as a management contract, with both revenue and cost-risk being borne by the Government. In return VRG will receive a margin of 1% on revenue. The contract also makes a provision for the Department and VRG to agree revised commercial terms that would see VRG take greater revenue and cost-risk in the period to 9 November 2014.

Oral Answers to Questions

Lord McLoughlin Excerpts

Thursday 29th November 2012 Commons Chamber

[Zac Goldsmith (Richmond Park) (Con)]

5. For what reasons summer 2015 has been set as the time by which the independent commission on aviation chaired by Sir Howard Davies must publish its final report.

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

It is vital that the commission has sufficient time to carry out a thorough investigation of the options and build a consensus on its long-term recommendations. The timetable has been set to allow that to take place.

[Zac Goldsmith]

This looks very much like an attempt to kick the issue into the long grass until after the election. My message to the Secretary of State is that uncertainty for three years, and probably another three years for planning, is not only bad politics but bad for the economy. I urge him please to ensure that next year’s interim report provides real clarity on the Government’s preferred solution so that communities, businesses and, of course, voters can plan accordingly.

[Mr McLoughlin]

I am not going to predict at this stage what will be in the interim report of a commission that has only just been set up. They will not be the Government’s recommendations; they will be those of the commission. I hope that the commission has been drawn widely enough to attract cross-party support.

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

After half a century of inquiries and investigations into runway capacity in the south-east of England, there are almost no new facts to be learned. Is this not just a fig leaf before the Government do a U-turn and provide a third runway at Heathrow?

[Mr McLoughlin]

I am sorry that the hon. Gentleman thinks that is the case, but it is not. In fact, we are trying to build a consensus across the parties on large infrastructure projects such as this, and to a degree that consensus has been achieved. The HS2 route that we have adopted is the route that the previous Government published.

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

In the meantime, noting the results announced by the owners of Gatwick airport yesterday, does my right hon. Friend believe that competition is an important element in trying to ease the capacity problems in the London airport system?

[Mr McLoughlin]

The truth of the matter is that a number of airports are now owned by different companies as a result of the changes that have been made, and they are coming forward with their own proposals, which will add to the approach taken by the Davies commission. It will certainly not be short of representations of various sorts, including, I imagine, from my right hon. Friend.

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

The Prime Minister came back from his summer holiday saying that he was

“more determined than ever to cut through the dither that holds this country back.”

Having dithered for a year before finally accepting our suggestion of an independent commission on aviation, the Government have now cynically set a time scale that pushes decisions beyond the next election. Will the Secretary of State finally listen to all those, including the CBI and the British Chambers of Commerce, who want the national interest to be put before party management, accelerate the time scale, and ask Sir Howard Davies to produce his final report by the end of next year?

[Mr McLoughlin]

In all honesty, the Labour party has also changed its position on what should happen at Heathrow. I would have hoped that the composition of the commission attracted widespread support. Indeed, one of its members is an adviser to the Leader of the Opposition on infrastructure projects. It is right that we get the right answer and build consensus on what we are trying to do.

[Maria Eagle]

Business will be bitterly disappointed by that answer. It is no wonder the Mayor of London has described his own Government’s approach to aviation as

“a policy of utter inertia”,

“glacial” and a “fudgerama”. HS2, Thameslink, franchising, investment promised in the autumn statement a year ago: all are running late. The Secretary of State is now presiding over the department for dither and delay. When is he going to get a grip?

[Mr McLoughlin]

The hon. Lady was smiling at the end of her question, and that betrays the fact that it was a very good line written for her but not quite believed by her when she delivered it. We are doing a huge amount in delivering for UK infrastructure. I look forward to seeing the recommendations that she wants to put to the Davies commission, which will tell us what Labour wants to do.

[Mr Edward Leigh (Gainsborough) (Con)]

6. What improvements to transport infrastructure he has planned that will affect Lincolnshire.

--- Later in debate ---

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

On 13 November, I announced that the preferred bidder for the Driver and Vehicle Licensing Agency’s counter services contract was Post Office Ltd. We expect the contract to be awarded before Christmas and it will be operational from April 2013. The contract will achieve savings of between £13 million and £15 million each year. The initial contract will run for seven years.

[Nigel Adams]

I am grateful to the Secretary of State for that reply. Does he agree that this decision will provide a great boost for many village post offices, such as those in Hambleton, Monk Fryston and Cawood in my constituency, and will help to preserve their long-term viability?

[Mr McLoughlin]

I am grateful to my hon. Friend, who was one of the leading campaigners trying to ensure that the contract was awarded to the Post Office. I am pleased that it managed to win the contract. It won it in an open competition, which shows that it is able to win contracts from the Government to provide services. The decision is vital for places, including those in my constituency, that rely to a huge extent on their rural post offices.

[Michael Fabricant (Lichfield) (Con)]

My right hon. Friend may recall that for a very brief time I was the shadow Department of Trade and Industry spokesman on post offices. The key thing has always been the need for footfall, because without it, as my hon. Friend the Member for Selby and Ainsty (Nigel Adams) said, there is no viability. What increase in footfall does my right hon. Friend estimate will result from this innovative move?

[Mr McLoughlin]

I do remember my hon. Friend’s time as our party’s spokesman on post offices. Indeed, I was the Minister with responsibility for the Post Office at one point in history, so I well appreciate how important post offices are to our rural communities. It is important that they win business, but they have to compete for that business. They have done so very successfully in this case.

[Graeme Morrice (Livingston) (Lab)]

8. If he will make it his policy to reinstate national targets to reduce deaths and serious injuries on the roads.

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

13. If he will make it his policy to reinstate national targets to reduce deaths and serious injuries on the roads.

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

The Government have no plans to reinstate national targets. The strategic framework for road safety sets out measures that we intend to take to continue to reduce casualties. Those include making forecasts of the casualty numbers that we might expect to see through to 2030 if our measures, and the actions of local authorities, are successful.

[Graeme Morrice]

With the numbers killed and seriously injured on Britain’s roads increasing for the first time in 17 years, will the Secretary of State think again about the decision to axe national targets on reducing deaths and serious injuries, which helped to focus efforts across Government, local government and the agencies?

[Mr McLoughlin]

I will never take safety lightly; it must always be uppermost in the mind of the Secretary of State for Transport. The United Kingdom has a very good record. In 1979, the number of people killed on the roads was 6,352. In 2011, the number was 1,901. That is still far too many, but the country has been heading in the right direction.

[Kate Green]

Campaigners will meet in my constituency this weekend to discuss how we can improve local road safety. There is growing support for 20 mph speed limits in residential areas. Why does the Department advise that safety has to be balanced against economic considerations and traffic flow, when there is no evidence of longer journey times in 20 mph areas?

[Mr McLoughlin]

I am always willing to look at the hon. Lady’s representations. It is important that we take a range of measures to improve safety. We have taken a range of measures, as have the companies that produce cars. There is no doubt that cars are much more responsive in their braking power than they were 30 years ago. We have made movements in the right direction. In some areas, 20 mph speed limits are right.

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

At a time of budget constraints, agencies understandably concentrate scarce resources on the performance targets against which they are measured. That is clearly having an impact on road safety budgets. I urge the Secretary of State to reconsider this decision because quite apart from the personal tragedy that is involved in all fatalities, it is a false economy, because every fatality costs a lot of money.

[Mr McLoughlin]

Indeed. The hon. Gentleman is right: a fatality not only causes huge damage and a dramatic situation for the family involved in that tragedy, but there is also cost to the health service and other services. There has been no diminution in the desire of the Department for Transport to improve road safety, and there will not be while I am Secretary of State.

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

The Secretary of State may be aware that road traffic deaths in the east midlands are double those in the north east per capita. As I learned from the Transport Committee inquiry into road safety, national targets allow underperforming local authorities to shelter behind the excellent performance of other local authorities, Blackpool included. Does the Secretary of State agree that national targets actually lead to more traffic deaths in some parts of the country because we are not targeting underperformance?

[Mr McLoughlin]

I am grateful to my hon. Friend; he makes an interesting point. Whenever serious or fatal accidents take place I want a proper investigation to be conducted, the results of which can be carried across to provide experience to other local authorities throughout the United Kingdom.

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

The Secretary of State’s decision will be bitterly regretted by campaign groups across the country. Targets introduced by the Thatcher Administration 30 years ago had cross-party support and have successfully brought down casualty rates across the country. His use of the word “forecasts” indicates that he is trying to claw something back from his predecessor’s bad decision to abolish targets. Will the Secretary of State think again? Targets are not the whole solution but a component; they are part of the way to reduce serious injuries and deaths on British roads.

[Mr McLoughlin]

I know the hon. Gentleman takes this issue incredibly seriously, and although he talks about deaths I think we should look at the seriously injured as well. In the year ending June 2012, there were 1,790 deaths on British roads—a 6% drop on the year before.

[Mark Pawsey (Rugby) (Con)]

The Secretary of State is well aware that those most at risk on our roads are young drivers. I was pleased to see his recent positive comments about placing restrictions on young drivers—for example, on the number of passengers they may carry or the times of day they may drive. Will he indicate to the House how those proposals might be taken forward?

[Mr McLoughlin]

A number of representations on young drivers have been made to the Department for Transport and, as I said in that interview, they are all worth considering and investigating properly to see whether we can reduce the terrible toll that is sometimes caused by young drivers. However, that is not so of all young drivers. We read about the horrendous cases, but not about the many cases where young drivers behave and act responsibly on the road, as do other road users.

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

9. What progress he has made on dualling the A1 north of Newcastle; and if he will make a statement.

--- Later in debate ---

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

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

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

I thank all the people who are working to get our roads and railways back up and running following widespread flooding. It has caused significant damage to our infrastructure, but I know that every effort is being made to return the service and reopen all routes as soon as possible. I will be seeing those efforts myself near Bristol later today. I can also update the House on our preparations for winter. We now have almost 2 million tonnes of salt, nearly double the amount two years ago, on stand-by to keep our motorways and main roads ice-free. We have also invested heavily in equipment to help clear the railway tracks of snow, and to stop rail and points freezing. I hope to be able to publish the Sam Laidlaw report into the inter-city west coast franchising competition and update the House next week.

[Neil Parish]

I thank the Secretary of State for all the work he has done with flooding, especially in my constituency through Tiverton into Exeter. The M5 also flooded, which shows that it is necessary to have a second arterial route dualled. The A30 needs to be dualled from Honiton upwards, because the Stonehenge end has always been the problem. We should work northwards from my constituency—there is no bias there whatever, Secretary of State—and have a second route.

[Mr McLoughlin]

My hon. Friend is a great campaigner for his area. In my job as Secretary of State for Transport, I am learning a lot more about roads I have never travelled on. I will certainly look at his request—[Interruption.] I am sorry, Mr Speaker, I was misled by my opposite number. I was trying to listen to the hon. Lady as well as answer my hon. Friend. I assure him that I will certainly look into his representations.

[Lilian Greenwood (Nottingham South) (Lab)]

With regard to bus cuts, the Under-Secretary of State for Transport, the hon. Member for Lewes (Norman Baker) suggested to this House that

“there have not been the cuts that the Opposition are so keen to talk up.”——[Official Report, 19 April 2012; Vol. 543, c. 485.]

However, in July, Passenger Focus found that

“the majority of passenger impacts were below the water line,”—

and we now know that supported bus miles fell by 9.3% last year. Will the Minister therefore finally accept that the reduction in central Government funding has resulted in substantial cuts to socially valuable bus services?

--- Later in debate ---

[Duncan Hames (Chippenham) (LD)]

The Government recently awarded the core Crossrail signalling contract to the proven talent of Chippenham’s Invensys Rail, working in partnership with Siemens. What provisions in that contract will secure a British-based work force for the project, in light of today’s announcement of the intended sale of Invensys Rail to Siemens?

[Mr McLoughlin]

I need proper notice of that question, but I will certainly write to my hon. Friend with the answer.

[Jessica Morden (Newport East) (Lab)]

Toll increases on the Severn bridge were announced last week. Businesses and commuters in my constituency feel that they are paying the highest tolls in the UK. What they would like to hear from the Government is that they will do what they can to help now, and that when the concession ends the tolls will be substantially reduced for local people, not considered a useful revenue stream for the Government. Will the Minister make that commitment?

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

In 2007 funds were awarded under capital expenditure grants—the Bellwin formula—to Hull and Gloucestershire. Will similar moneys be awarded to repair bridges and roads that were severely damaged in the September floods in north Yorkshire?

[Mr McLoughlin]

My right hon. Friend the Secretary of State for Environment, Food and Rural Affairs made a statement dealing with the Bellwin formula and some of the flooding. I will look at the suggestion my hon. Friend has made.

[Jeremy Corbyn (Islington North) (Lab)]

Will the Secretary of State revisit the issue of electrifying the Barking to Gospel Oak section of the North London line? Electrification would make freight transport much more efficient and cheaper and enable much greater integrated working of the whole London overground system with the same trains, rather than having to switch to diesel on one section. [Interruption.]

[Mr Speaker]

Order. The hon. Member for Central Ayrshire (Mr Donohoe) should not be chuntering from a sedentary position about who came into the Chamber when. I know perfectly well what I am doing. The hon. Member for Islington North (Jeremy Corbyn) has been here for some time. He has been legitimately called and that is all there is to it. It is very straightforward. The hon. Member for Central Ayrshire should keep schtum; he might learn something.

[Mr McLoughlin]

I hear the representations that the hon. Gentleman has made about the line. Strong cases have been made. The line did not make the cut for electrification last time. We have announced huge electrification across the network, and I will certainly look at the case he has made.

The hon. Member for Caithness, Sutherland and Easter Ross, representing the House of Commons Commission, was asked—

HGV Road User Levy Bill

Lord McLoughlin Excerpts

Tuesday 20th November 2012 Commons Chamber

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

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

As the House knows, the reason for this Bill is to enable the introduction of a new levy for all heavy goods vehicles weighing 12 tonnes and over that are kept or used on the UK road network. We plan to implement the levy from April 2014 for UK-registered hauliers. Subject to the completion of a procurement process, it will apply to foreign-registered hauliers from the same date.

We intend the levy to apply to all categories of public roads in the UK and to both UK and foreign-registered HGVs. Vehicles that cause wear and tear to our roads should make a payment that takes that into account. HGVs registered abroad are more likely to carry their weight on fewer axles than UK-registered vehicles, which means that foreign-registered vehicles cause more wear and tear to our roads. It is therefore more unjust that they do not make a contribution towards the maintenance of these roads. They leave the burden to fall entirely on the British taxpayer.

[Robert Flello (Stoke-on-Trent South) (Lab)]

What about foreign truck drivers who come over with large tanks full of fuel and who do not contribute to the ordinary wear and tear on our roads because they do not pay the fuel duty?

[Mr McLoughlin]

I take the hon. Gentleman’s point. Under this Bill, we will at least charge them something to use British roads—at the moment, they pay absolutely nothing. Although I am not saying that this is the entire answer, we are moving in the right direction.

Foreign hauliers using roads in the UK have long enjoyed an advantage over our own haulage industry in that they do not pay to use the UK’s road network, while our own hauliers pay to use roads through tolls and other charging schemes when they travel abroad in Europe. For many years all main parties have wanted to introduce a measure to correct that imbalance and I am delighted that this Government are actually doing it.

I am sure that the House recognises that HGVs play a crucial role in our economy by supplying businesses and servicing customers. More than two thirds of all goods moved within the UK travel by road and, in the main, on HGVs.

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

The Secretary of State is right to pay tribute to the work done by HGVs in this country but, at a time when UK hauliers and other businesses that make deliveries are suffering economically, will he outline the rationale behind introducing the Bill now? What other things will the Government do to protect UK hauliers from additional costs?

[Mr McLoughlin]

The reason for introducing the Bill now is to try to level the playing field and to take action that the previous Government talked about but, I am afraid, never found the time to do anything about. I make no apologies for wanting to do this now. I wish it had been done sooner, but at least we are doing it at our first opportunity.

A key part of the movement of goods is provided by foreign hauliers and the Government recognise the important contributions they make to the economy. They make 1.5 million trips to the UK every each year, and we do not wish to discourage free trade with our partners in other countries. However, it is only right that we ensure that our own haulage industry has a fair chance to compete, and I hope that the Bill goes some way to achieving that. I met some hauliers when I announced the Bill and they said that it would lead to more jobs in this country.

As colleagues will be aware, any road user charge is subject to the strict conditions set out in the Eurovignette directive, which provides a framework for charging on roads and specifies the maximum daily charge as €11. That is likely to rise to €12 by 2014, which will mean that it should equate to the £10 a day that we intend to charge the largest vehicles that use our roads.

I also recognise that many trips made by foreign hauliers take longer than one day, so they will also be able to pay the levy for different periods, up to one year. In the case of the largest vehicles, this annual charge will be £1,000. Our estimate of the revenues that will be gained as a result of foreign hauliers paying a charge is between £19 million and £23 million a year. Although that is not enormous, it shows we are doing something that is clearly wanted. That is why the Bill is right. The Government are also committed to introducing other measures—principally vehicle excise duty reductions—that are not part of this Bill to ensure a fairer deal for HGV drivers.

I will now go through the Bill’s points of interest.

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

I have a question about something that I genuinely do not understand. The new levies will be welcome, but why will there be a delay, as I understand it—I may be wrong—between their imposition on UK hauliers, who will have to pay first, and on non-UK hauliers?

[Mr McLoughlin]

I very much hope that there will not be a delay. As I have said, I intend the levy to be introduced in April 2014, subject to certain procurement measures. Once it is introduced in this country, there will be a reduction of a similar amount in VED charges, so our lorry drivers should not pay anything extra. Foreign drivers will be charged from, I hope, April 2014. I hope that that addresses the hon. Gentleman’s question.

[Robert Flello]

The Secretary of State is being extremely generous with his time. Will he clarify why overseas hauliers are not required to pay for a year up front, but can pay on a daily, weekly or monthly basis? Is there a legislative reason why they cannot be asked to make an annual up-front payment, as with VED?

[Mr McLoughlin]

Overseas hauliers will pay in advance of coming to this country. However, asking somebody who is bringing a lorry over for a day to pay for a full year would be quite unfair. We are therefore allowing them to pay daily, weekly or yearly. Most HGV drivers who come to this country regularly will find it much more convenient and a lot cheaper to pay for the year than to pay for each individual day. I hope that that clears up the hon. Gentleman’s point.

The Bill states that HGVs weighing more than 12 tonnes will have to pay a duty of excise levied by the Secretary of State if they are used or kept on a public road within the United Kingdom. It will be known as the HGV road user levy. It will be charged to allow both UK-registered and foreign-registered vehicles to use our roads. The levy applies to all roads in the UK. However, clause 3 provides the power for the Secretary of State to exempt specific roads from the charge by way of statutory instrument, should the need arise.

Clause 4 sets out the liability for the levy. For HGVs registered in the UK, liability for paying the levy will lie with those in whose name the vehicle is registered and with the person keeping the vehicle. That applies the principle used for vehicle excise duty in section 1 of the Vehicle Excise and Registration Act 1994. That allows for the levy on UK-registered vehicles to be paid at the same time as vehicle excise duty. For non-UK-registered HGVs, the person who holds the Community licence for the vehicle and the person who keeps the vehicle are liable to pay the levy. For both UK-registered and non-UK-registered vehicles, when two or more people are liable to pay the levy, they are jointly and severally liable.

Clauses 5 and 6 set out the methods of payment for UK-registered and non-UK-registered vehicles. For UK-registered vehicles, the levy will be paid either yearly or half-yearly at the same time as vehicle excise duty. Where appropriate, rebates may be made for vehicles that are stolen or destroyed. The circumstances under which a rebate will be available and the method of calculating the value of a rebate, together with other conditions that must be met to make a claim, are covered in clause 7.

Some types of rigid vehicle weighing less than 12 tonnes will be exempt from the charge. The Bill also provides powers to allow the Secretary of State to make regulations that exempt some categories of HGV from the charge.

Collection and enforcement of the charge, and related elements, are covered in clauses 9 to 16.

[Huw Irranca-Davies]

Before the Secretary of State continues, will he clarify one point? Again, I am happy to be corrected. I believe that the Bill sets out that different and potentially higher levels may be charged for weekly or monthly payments for non-UK HGVs. I am not against that. However, will he give a cast-iron guarantee that it does not infringe any anti-discrimination trade provisions within the EU?

[Mr McLoughlin]

Yes, we have covered that. The hon. Gentleman is obviously going to take part in this debate and may well find himself on the Public Bill Committee in due course, so he will be able to cover that point in much more detail. I am glad that the Committee is tempting and am sure that the Opposition Whip has made a note of his details. [Interruption.] Was the hon. Gentleman making a request to be on the Committee? Perhaps he would like to share it with the House.

[Huw Irranca-Davies]

Regrettably, I have to inform the House that I am on another Committee.

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

rose—

[Mr McLoughlin]

I give way to the hon. Member for Poplar and Limehouse (Jim Fitzpatrick).

[Jim Fitzpatrick]

We are grateful to the Secretary of State for trying to recruit our members of the Committee. Much as I would love to see my hon. Friend the Member for Ogmore (Huw Irranca-Davies) on it, I think that the Secretary of State should leave it to us and the Whips.

[Mr McLoughlin]

I apologise to the Opposition. I was going back to my old territory, which I must not trespass on any longer. I am glad that we have managed to smoke out the hon. Member for Ogmore (Huw Irranca-Davies) as to his willingness and availability. I am sure that he gives distinguished service to the other Committee. I must check which it is after this debate.

The level of vehicle excise duty evasion among UK hauliers is extremely low at less than 1% of vehicles. I have no reason to anticipate that that will change once the levy is introduced. To reduce the administrative burden, the levy will be paid at the same time as VED. We have looked at ways to make the introduction of the levy cost-neutral for UK hauliers. To do that, we will reduce the level of VED to take account of the new charge. That reduction will mean that an estimated 94% of UK hauliers will pay no more than they do at the moment and that 98% will pay no more than an additional £50 a year. Clause 15 allows the Secretary of State to refuse to issue a tax disc when the appropriate levy has not been paid. That will lead to vehicles being unlicensed, which brings the associated penalties of immobilisation, removal and disposal.

For foreign-registered hauliers, a system will be procured to allow the levy to be paid online before the vehicle enters the country. The levy is based on the length of time, so visiting hauliers will have to select the period for which they will be using UK roads. The options will go from a single day to a year. Once a haulier has paid the right fee, the payment record will be entered automatically into a database, allowing enforcement agencies to check the status of any HGV using UK roads. Information relating to whether a vehicle has paid the levy will be made available publicly.

There is a risk of foreign hauliers evading the new charge. We will ensure that the Vehicle and Operator Services Agency, which will enforce the charge in England, Wales and Scotland, and the Driver and Vehicle Agency, which will enforce the charge in Northern Ireland, are properly equipped to do the job from the start.

[Huw Irranca-Davies]

May I take this opportunity to invite the Secretary of State to join me on the Groceries Code Adjudicator Public Bill Committee at his earliest convenience? Does he foresee any problems in enforcing this wonderful measure owing to the Government’s decision to opt out of the EU directive on cross-border enforcement?

[Mr McLoughlin]

I am grateful to the hon. Gentleman for sharing with us which Committee he is sitting on. The Committee on this Bill will really miss his attention to detail. I have no reason to believe that there will be any of the problems that he mentions. I have assured myself that what we are doing is wholly within the law and within EU competition rules.

For non-UK hauliers, there will be no physical sign of the levy having been paid. I believe that paper discs or similar signs would impose a needless burden and open the door to fraud. One of the main methods that we will use to detect vehicles that have not paid the charge is by linking our automatic number plate recognition cameras to the payment database. The use of that technology will enable quicker checks to be made on all HGVs. The power to install such equipment where it does not exist is being introduced in the Bill by amending the Highways Act 1980, the Roads (Scotland) Act 1984 and the Roads (Northern Ireland) Order 1993 in clause 16.

[Robert Flello]

What will be the situation if an overseas haulier, either deliberately or by omission, does not purchase a sufficient amount of time? What will happen to the load that a vehicle is carrying if it is seized by one of the agencies?

[Mr McLoughlin]

Drivers will know that they have to pay the levy before they come into the country. If they fail to pay, the measures available to the enforcement agencies will be used. I make no apology for that. If they think that they will be here for three days, they should pay for three days.

[Michael Connarty (Linlithgow and East Falkirk) (Lab)]

Will the Secretary of State give way?

[Mr McLoughlin]

Very briefly.

[Michael Connarty]

Who will be fined? Will it be the driver or the owner of the vehicle? If it is a hired vehicle, who will suffer the fine?

[Mr McLoughlin]

The driver is responsible for ensuring that the vehicle that he is driving is covered. He is in charge of the vehicle.

The penalty is currently set at £200 and would also be paid in situations where the levy had been underpaid—if someone had declared a lower vehicle weight limit, for example, or the wrong number of axles. Clause 13 inserts the offence in schedule 3 of the Road Traffic Offenders Act 1988, which lists the offences for which fixed penalties can be given.

Where there is frequent non-compliance by a specific vehicle or haulage company, clause 11 will allow for the imposition of a fine up to category 5 on the standard scale—currently £5,000—when someone is convicted of failing to pay the levy. I hope that those measures, coupled with active enforcement, will be seen as a suitable deterrent. Collected fine revenues will be paid into the Consolidated Fund; there was a lot of debate on that when we discussed the Ways and Means resolution.

I am sure the House will agree that by creating fair competition for the UK haulage industry, the Bill will help finally to put right a wrong. I commend the Bill to the House. It is well overdue and should have been introduced some time ago.

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

It is good to see the Secretary of State in his place for this Second Reading debate, and my hon. Friend the Member for Nottingham South (Lilian Greenwood) and I are delighted to see all three Conservative Ministers from the Department for Transport here this afternoon. By leaving a Liberal Democrat Minister in charge of the shop, the coalition Government have made a statement of their trust and confidence—or perhaps he has been given the afternoon off.

[Mr McLoughlin]

I think the hon. Gentleman will find that the Under-Secretary of State for Transport, the hon. Member for Lewes (Norman Baker), is responding to a debate in Westminster Hall.

[Jim Fitzpatrick]

I am sure he would be under suspicion—no, I beg your pardon—I am sure he will be watched wherever he goes, because of the excellent job that he does as the senior and longest-serving Minister in the Department for Transport, having survived from 2010. I welcome his new colleagues to their places.

The Secretary of State took something like 18 minutes to move the Second Reading, which is par for the course. According to Hansard from 23 October 2012, column 861, the Under-Secretary, the hon. Member for Lewes, took a minute to move the Ways and Means motion—it actually felt like a lot less than a minute, but he was just procedurally introducing that debate.

The Secretary of State graciously said that both main parties have wanted to introduce this legislation, and I am sure he is aware that in my speech on the Ways and Means motion, I commended the coalition Government for finding a way to introduce this welcome measure.

I do not want to detain the House too long, because I spoke for 18 minutes during the debate on the Ways and Means motion—that was my Second Reading speech and is contained in columns 861 to 865 of Hansard from 23 October 2012, should anybody wish to look at it. We covered a lot during that debate, including road exemptions that the Secretary of State is implementing in clause 3(2). We covered hypothecation at length, and I am sure we will return to that in Committee. We spent a bit of time on road safety—particularly cycle safety—and whether the money raised from the scheme could be devoted to that. We also raised the Secretary of State’s discretion in clause 7(9), and asked questions about short sea shipping and moving freight from road to rail—we will continue to ask about that. We asked questions about the contract for running the scheme, the technology involved, and who is making the arrangements. Cross-border enforcement, which my hon. Friend the Member for Ogmore (Huw Irranca-Davies) raised a moment ago, was also part of the discussion.

A number of issues were raised during that debate. The Under-Secretary of State for Transport, the hon. Member for Wimbledon (Stephen Hammond) answered most of those points, although some were left without a response on the basis that they were detailed matters. I am sure we will look at those in Committee. In principle, however, the Opposition support this measure. We will want to look at the detail when the Bill goes to Committee, but we welcome its arrival in the House this afternoon.

Driver and Vehicle Licensing Agency

Lord McLoughlin Excerpts

Tuesday 13th November 2012 Written Statements

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

The Driver and Vehicle Licensing Agency (DVLA) has recently run a competition to procure a front office counter service provider for its face-to-face motoring services from next April.

I can today announce that the DVLA will award Post Office Ltd a contract to build on the existing counter operation to provide a wider range of services and better accessibility for motorists. The contract will run for seven years with an option to extend for up to another three years. This contract will allow the Post Office to fully develop better services with the requirements of customers at the heart. Under the contract, Post Office Ltd will offer DVLA services at over 4,700 outlets for road tax and vehicle transactions, 750 of which will also cater for driver licensing.

This new contract provides value for money for the taxpayer resulting in savings of between £13 million and £15 million a year. The contract also gives scope for the Post Office to provide front office counter services for other Government Departments, to increase efficiencies across Government and provide better value for the taxpayer.

Airports Commission

Lord McLoughlin Excerpts

Friday 2nd November 2012 Written Statements

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

On 7 September, the Government announced their intention to create an independent commission, chaired by Sir Howard Davies, to identify and recommend to Government options for maintaining the UK’s status as a global aviation hub. Following discussions with Sir Howard, the Government are now in a position to announce the full membership and terms of reference for this body, which will be named the Airports Commission.

In selecting members of the Airports Commission, the Government worked with Sir Howard to identify individuals with a range of skills, backgrounds and experience. The commission also intends to appoint a panel of expert advisers, to enhance its capability to address issues that fall outside of the direct experience of the commissioners.

In addition to Sir Howard Davies, the full membership of the commission includes:

Sir John Armitt, the former chairman of the Olympic Delivery Authority and former chief executive of Network Rail.

Professor Ricky Burdett, professor of urban studies at the London School of Economics and director of the LSE cities research centre.

Vivienne Cox, the former CEO and executive vice- president of BP alternative energy and a former member of the BP executive management team.

Professor Dame Julia King, vice-chancellor of Aston university and a member of the committee on climate change, with a background in the aerospace industry.

Geoff Muirhead CBE, the former CEO of the Manchester Airport Group.

The commission’s terms of reference will be as follows:

The commission will examine the scale and timing of any requirement for additional capacity to maintain the UK’s position as Europe’s most important aviation hub; and it will identify and evaluate how any need for additional capacity should be met in the short, medium and long-term.

It should maintain a UK-wide perspective, taking appropriate account of the national, regional and local implications of any proposals.

It should engage openly with interested parties and members of the public, providing opportunities to submit evidence and proposals and to set out views relevant to its work.

It should seek to engage with a range of stakeholders, including with local and devolved Government as well as the Opposition, to build consensus in support of its approach and recommendations.

The commission should report no later than the end of 2013 on:

Its assessment of the evidence on the nature, scale and timing of the steps needed to maintain the UK’s global hub status; and

Its recommendation(s) for immediate actions to improve the use of existing runway capacity in the next five years—consistent with credible long-term options.

The assessments and recommendations in the commission’s interim report should be underpinned by a detailed review of the evidence in relation to the current position in the UK with regard to aviation demand and connectivity, forecasts for how these are likely to develop, and the expected future pattern of the UK’s requirements for international and domestic connectivity.

Its assessments of potential immediate actions should take into account their economic, social and environmental costs and benefits, and their operational deliverability. It should also be informed by an initial high-level assessment of the credible long-term options which merit further detailed development.

The commission should report no later than summer 2015 on:

Its assessment of the options for meeting the UK’s international connectivity needs, including their economic, social and environmental impact;

Its recommendation(s) for the optimum approach to meeting any needs; and

Its recommendation(s) for ensuring that the need is met as expeditiously as practicable within the required time scale.

The commission should base the recommendations in its final report on a detailed consideration of the case for each of the credible options. This should include the development or examination of detailed business cases and environmental assessments for each option, as well as consideration of their operational, commercial and technical viability.

As part of its final report in summer 2015, it should also provide materials, based on this detailed analysis, which will support the Government in preparing a national policy statement to accelerate the resolution of any future planning applications for major airports infrastructure.

West Coast Main Line

Lord McLoughlin Excerpts

Monday 29th October 2012 Commons Chamber

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

With permission, Mr Speaker, I would like to make a statement on the progress we are making to put right arrangements for the west coast main line and rail franchising. First, I will update the House on the Laidlaw inquiry. Secondly, I will explain how we will ensure not only continuity of service on the west coast line after 9 December, but an enhanced service.

On 3 October I announced the cancellation of the competition to run the inter-city west coast franchise because of the discovery of unacceptable flaws in the procurement process run by the Department for Transport. I made it clear at the time, and do so again today, that this was a very regrettable decision prompted by mistakes that should never have happened. I also launched two independent inquiries, one of which has reported its interim findings to me, and which I am today delivering to the House.

I asked the first inquiry, led by Centrica chief executive Sam Laidlaw, to look into what happened and why, with the aim of establishing the lessons to be learned. I also asked the second review, led by Eurostar chairman Richard Brown, to focus on any lessons to be learned for the future rail franchising programme. I promised that both would conduct their investigations thoroughly, independently and urgently.

Given the public interest in this matter, the Laidlaw inquiry was asked to deliver an interim report to me by 26 October and a final report by the end of November. I am grateful to the inquiry for meeting the first deadline and for working tirelessly to meet the second. I stress that today’s findings are precisely that: an interim report. There is more work to do. These findings are clearly a first stage. As Mr Laidlaw explains, they set out what went wrong, and from that basis he will now carry out further investigations into why this happened.

From the start, my aim in dealing with this situation has been to be open and to come forward with information for the House at the earliest opportunity. It is in that spirit that I make this statement today. In the interests of complete transparency, I am publishing this interim report with its provisional findings, and placing copies of it in the Libraries of both Houses.

To be blunt, these initial findings make uncomfortable reading, but they provide a necessary and welcome further step in sorting this situation out. The Government will need to see the full and finished report before we can comment in detail on any conclusions. That is crucial because of the independent nature of the Laidlaw inquiry and the need for the Government not to prejudge its eventual findings, but it is clear that the inquiry has identified a number of issues that confirm that my decision to cancel the franchise competition was necessary. These include a lack of transparency in the bidding process, the fact that published guidance was not complied with when bids were being processed, inconsistencies in the treatment of bidders, and confirmation of technical flaws in the model used to calculate the amount of risk capital bidders were asked to provide to guard against the risk of default. The Laidlaw inquiry also mentions factors that

“appear to have caused or contributed to the issues raised”.

We will look at them with interest and care, although, once again, we will need to see the final report before we can comment further.

Secondly, I would like to update the House on the progress we are making to ensure continuity of service on the west coast main line once the current franchise expires on 9 December. As I have said previously, we will ensure that passengers continue to be served by the same trains with the same front-line staff, the same services and using the same tickets, and, I am pleased to say, with enhanced future timetables.

The Department is making good progress in its discussions with Virgin on how it will operate the line for a short period of up to 14 months while a competition is run for an interim agreement. We are discussing its proposals for improved services over this period and an enhanced compensation scheme for delayed passengers.

In dealing with this matter, my Department has been frank and open about its mistakes and is absolutely determined to find out exactly what happened. In the meantime, we will keep delivering for passengers, and continue with the unprecedented levels of investment in trains, stations and railway lines.

Combined with our decision to limit train fare rises to an average of inflation plus 1%, instead of RPI plus 3%, for the next three years, this demonstrates this Government’s total commitment to Britain’s railways. I commend the statement to the House.

--- Later in debate ---

[Mr McLoughlin]

For the hon. Lady’s information, the Department is based in Horseferry road, not Marsham street.

Let me draw the hon. Lady’s attention to the final line of Mr Laidlaw’s letter to me today, which states:

“Firm judgments should not be made based upon what are provisional findings or wider conclusions drawn at this stage.”

I have been very open with the House about the problems we have encountered. She accuses the Government of wasting money, but she should perhaps look back at the previous Government’s record, particularly the decision by the then Deputy Prime Minister that wasted some £469 million on the flawed procurement of regional fire stations. I see that the shadow Minister, the hon. Member for Poplar and Limehouse (Jim Fitzpatrick), is rather amused by that, because he was directly involved.

I have come to the House and I have been open with the House. As far as the money is concerned, I talked about the £40 million that related to the bidding process and there will be some other costs. When I have those costs, I will inform the House. I will not judge them or estimate them; I will give the House the information when I have it.

The last time I gave a statement, the hon. Lady attacked us for not getting external advice. As the answers given by my right hon. Friend the Minister of State show, we did get external financial advice where necessary. Yes, some changes were made to the Department but they were well under way and being planned for before May 2010.

On the question of Virgin’s position, I made it perfectly clear the last time I made a statement that I intend to enter into an interim contract with Virgin until we can do a longer franchise. That first franchise will last up to 13 months. I did check it out, and have obviously had discussions with, the commission.

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

May I congratulate my right hon. Friend on coming to the House and being so transparent and open about what is obviously a very painful part of the Department’s dealings? Will he now translate that openness and transparency across all the modelling that is being used either by the Department for Transport or its subsidiary, HS2 Ltd, for HS2? Will he now put his words into action and publish the Major Projects Authority’s report on HS2, showing that he really is a transparent Secretary of State?

[Mr McLoughlin]

As I think I said to my right hon. Friend the last time we discussed this matter, a lot of work is being done on the planning of HS2 and there will be a number of opportunities for wide-ranging debates when we discuss that Bill, but today I am dealing with the west coast main line and franchising.

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

Will the Secretary of State tell us whether Mr Laidlaw considered the implications of the decision to make this a 15-year franchise? He will know that when I had his job I reduced the franchises to seven years, because after that time trying to speculate on the state of the economy, and therefore on what fair revenue is, becomes increasingly difficult, if not impossible. The problem is that the further out we go, the greater the probability is that the risk will fall back on the Government. Does not that policy decision, taken, I think, by some of his predecessors, need to be reconsidered if we are not to repeat some of the procedural problems that he has outlined today?

[Mr McLoughlin]

I am grateful to the right hon. Gentleman for that question. He has a distinguished record of being one of the longest-serving Secretaries of State for Transport, so I listen to him with the care and attention he rightly deserves. He raises a couple of points. He might not be aware that at the tail end of the previous Government they also talked about extending the franchises up to 20 years, which was seen to be a way of getting a better return overall for the huge investment from the taxpayer that goes into the railways. He makes an interesting point. As I said in my initial statement, I have asked for two reviews and I think that that is something that Richard Brown, the chairman of Eurostar, will be considering in his report, which I expect to see before the end of the year.

[Mr John Redwood (Wokingham) (Con)]

In the appraisals of the new competition being held for the west coast franchise, what will the role of Ministers be in setting the terms of the competition, supervising the arithmetic and making sure that a fair assessment is made?

[Mr McLoughlin]

I hope Ministers set out the policy. I am not sure that we are there to check every line of every spreadsheet. That is something that we should rightly expect officials to do for us at the request of Ministers, to ensure that we get the best value for the taxpayer out of what has been a huge amount of investment on this railway line, which has been made on behalf of the British public. It is one of the most important lines that serves the United Kingdom so I will certainly bear in mind what my right hon. Friend says, but part of the point of going for longer franchises was to try to deliver better services to the passenger.

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

The Secretary of State will be aware that the Transport Committee may have a few questions to ask him on Wednesday. Perhaps he could tell the House today why, if it is important that the outcome of the review should not be prejudged, he suspended three civil servants.

[Mr McLoughlin]

I am sure the Transport Committee will have a number of questions for me on Wednesday. I think I am looking forward to coming. The decision on suspensions of staff is not made by a Secretary of State; it is made by the permanent secretary. I have had no involvement with that process and it would not be right for me to do so.

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

Does the Secretary of State agree that one of the lessons that should be learned in relation to future franchising is the need to ensure that good performance as well as poor performance by an operator can be taken into consideration as part of the franchising process, notwithstanding the need for fair competition?

[Mr McLoughlin]

I entirely agree. That should certainly be taken into account, but so should the return to the taxpayer. The taxpayer has invested a huge amount of money in the line, which must be borne in mind as well.

[Mr Jack Straw (Blackburn) (Lab)]

Successive reports this year from the Transport Committee and a National Audit Office report last week have indicated that the Department is running a huge underspend on its capital programme. The NAO report last week talks about addressing

“£1.7 billion unexpected funds for infrastructure”.

I realise that the Secretary of State has been in office for only a few weeks, but can he say to what extent the slimming down of the Department and its preoccupation with the issue of rail franchising has meant that it lacked the capacity to ensure that funds properly allocated to it—for example, for road repairs and desperately needed regional rail infrastructure improvements—are spent, and what he is doing to address that?

[Mr McLoughlin]

The right hon. Gentleman’s question goes slightly wider than my statement this afternoon, but I point out that I made an announcement just a few weeks ago about a pinch-point plan to relieve certain areas of road congestion, which will cost £170 million. Wherever money is spent, I am determined to ensure that good value is obtained and that we do not waste public money. That is more important to a Minister than making sure he spends the money, come what may.

[John Stevenson (Carlisle) (Con)]

I congratulate the Secretary of State on the speed of the work that he is doing and his approach to this very difficult issue. My concern, however, is the potential loss of investment and innovation in the rail service in the short term. Will the Secretary of State assure me that everything will be done by his Department to ensure that no investment opportunity is lost and that any improvement to the service will go ahead if at all possible?

[Mr McLoughlin]

My hon. Friend make a good point, because the line is very important for his constituency. I know that he has already had a meeting with my right hon. Friend the Minister of State about rail investment in his constituency. I am keen to make sure that the benefits that people will get from the franchise are realised as soon as possible. There has been a necessary delay and I very much regret that.

[Mr George Howarth (Knowsley) (Lab)]

In his statement the Secretary of State referred to discussions that he is holding with Virgin about extending its involvement for a short period of 14 months. Can he give some reassurance to travellers and also to the staff who work on the west coast main line that if it becomes necessary to extend that 14-month period, there is no in-principle reason why that should not happen?

[Mr McLoughlin]

Over the next eight months, which we are talking about as the extension to the franchise, and the following five-month changeover period, if that is necessary, we will obviously be talking with Virgin and other companies interested in running the interim two-year contract, but I think that the jobs of the people who operate the trains will remain the same under any operator.

[Christopher Pincher (Tamworth) (Con)]

Commuters in Tamworth will be relieved to hear that at least my right hon. Friend knows where his Department is. Will he make clear the steps he can take to ensure that the next round of franchises are not unduly delayed? In particular, can original requests for proposals made by bidders who choose to tender again be requested again so that that the review process is expedited?

[Mr McLoughlin]

I can assure my hon. Friend that I am very keen to get on with franchising, but he would expect me to wait for the recommendations of the Brown report and the Government to respond to it in a measured and appropriate way. I can give him the assurance he seeks: I am very keen to get on with franchising.

[Sir Gerald Kaufman (Manchester, Gorton) (Lab)]

I join those Members who have complimented the right hon. Gentleman on his openness in coming to the House and his readiness to come here frequently. Is he aware that, as is shown in the book “How to be a Minister”, the incompetence, errors and blunders he listed in his statement should end up in the lap of his predecessor and that the Government should admit that? Will he also accept that those of us who travel twice a week on the west coast main line have seen the cloud that has hung over the train crews during this period lifted? It is up to him to ensure that the cloud does not return.

[Mr McLoughlin]

I am not sure who wrote “How to be a Minister”, but the right hon. Gentleman might like to inform me privately afterwards. I refer him to Sam Laidlaw’s letter, which I mentioned earlier. The fact is that this is an interim report and nowhere does it criticise Ministers.

[Mr Brian Binley (Northampton South) (Con)]

I welcome the Secretary of State’s willingness to update us on the continuity of service on the west coast main line once the current franchise expires on 9 December. Has he noted recent reports suggesting that capacity could be reached well before 2026, undermining continuity of service? Consequently, will he bring forward plans for HS2, even though he said he would not talk about them today?

[Mr McLoughlin]

I am interested in the representation my hon. Friend has made, but perhaps we could leave it at that.

[Mr Frank Field (Birkenhead) (Lab)]

Why does the Secretary of State think that he will ever be best placed to decide competition between these companies? Does he not realise that we, the consumers and travellers, would like to decide competition between the companies ourselves? When will he realise that we are in a better position to decide which trains we would like to travel on, that those who are bidding for the contracts have huge skills in fixing them and that no amount of skill from the Secretary of State can overcome them fixing the market in the way they have succeeded in doing up to now?

[Mr McLoughlin]

I am not sure that I completely agree with the right hon. Gentleman, but I might want to reflect a little on what his question is in the longer term. The Government, on behalf of the taxpayer, have invested a huge amount of money in the west coast main line—some £9 billion—so it is right that the people who are served by the line get a good service, and we are trying to find how best to achieve that.

[Mr Marcus Jones (Nuneaton) (Con)]

Over the past eight years, passenger numbers from Nuneaton station have increased by 77% to just under 1 million. On the basis of that growth and the huge growth in railway usage that we have seen across the country, does my right hon. Friend agree that it would be complete folly at this stage to revert to a nationalised railway, as has been alluded to by some Labour Members over the past week? May I also appeal to him to consider better off-peak fast services to Nuneaton station when he deals with the re-timetabling?

[Mr McLoughlin]

I am grateful to my hon. Friend. Requests for improved services often come my way whenever I appear at the Dispatch Box. That shows, to a degree, the importance of the rail industry to all our constituents and the demand that exists whereby people will use a service if it is available, so I take his representations very seriously. As for nationalisation, the railways could have been nationalised by the previous Government—they were in power for 13 years—and they decided not to do so, for very good reason.

[Ann Coffey (Stockport) (Lab)]

I know that the Secretary of State is aware of the urgent need for improvements to Stockport station, so will he tell me whether capital projects are to be included in the interim agreement?

[Mr McLoughlin]

I cannot yet go into the full details of what will be in the interim two-year agreement. However, the hon. Lady has made the case for Stockport station not just today but on other occasions, and, knowing her, I have the feeling that she will continue to do so every time I appear at the Dispatch Box.

[Jeremy Lefroy (Stafford) (Con)]

Stafford station is to receive a welcome £3 million upgrade, and my constituents are looking forward to several other improvements in fares and services, particularly—here is another bid for my right hon. Friend—later departures from London and Liverpool in the evening. Can he confirm whether these improvements will be possible under the two shorter franchises?

[Mr McLoughlin]

I am very pleased to hear that my hon. Friend’s station is being improved. I should like to point out that Derby station is being improved as well, but that was agreed some time before I arrived at the Department. On his request for further services to Stafford station, which I know well, I will certainly try to ensure that when the enhanced services are negotiated, Stafford also gets the benefit.

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

The Secretary of State mentioned the Brown review on more generalised lessons for franchising. Is he aware that some urgent lessons need to be learned and acted on straight away, particularly regarding routes to and from the west coast main line? I refer, of course, to the literally hundreds of train services that have been delayed or subject to cancellation by London Midland. The Secretary of State says that his officials are in daily contact on this. What are they doing? Will the problem be resolved? How did we get to the situation whereby London Midland appears not to have forward planned its driver requirements? What penalties are available to him and his Department?

--- Later in debate ---

[Mr McLoughlin]

I congratulate the hon. Gentleman; I think there were about six questions there. However, I will give him only one answer, which is that the Under-Secretary, my hon. Friend the Member for Lewes (Norman Baker), spoke directly to the managing director of that rail line. We are concerned about the deterioration of services, and I hope that measures will be put in place quickly to put them back to an acceptable level.

[Andrew George (St Ives) (LD)]

Notwithstanding my right hon. Friend’s reply to the hon. Member for Tamworth (Christopher Pincher) about the Brown inquiry, is he prepared to go a little further in outlining the consequences for other franchises and their timetabling, particularly the First Great Western franchise, which many hon. Members are very concerned about?

[Mr McLoughlin]

Yes; the hon. Gentleman’s points are well taken. However, I do not want to prejudge the Brown inquiry, nor the final Laidlaw inquiry. It is better that I wait for those reports to see whether they have any read-across. I assure him that, as I have said throughout the statement, we are very keen to see good, reliable railway services across the country.

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

I thank my right hon. Friend for his comments about the continuity of services on 9 December. He also said that he is in discussion with Virgin about enhancing services in December and an improved timetable. Can he give any more details about those discussions?

[Mr McLoughlin]

I am afraid that I cannot give those details at the moment, because we are in negotiations. I know that my hon. Friend wants a better service for Milton Keynes, because every time he talks to me he talks about exactly that. As a member of the Transport Committee, he is one of those people who keep an incredibly close eye on this issue and he will no doubt pursue me at every opportunity.

[Guy Opperman (Hexham) (Con)]

I welcome the speed and transparency of the interim Laidlaw report and endorse the calls of other hon. Members for lengthier franchises. Today the all-party group on rail in the north looks forward to meeting the Minister of State.

[Guy Opperman]

Yes, and I am sure that my right hon. Friend will be coming back.

Will the Secretary of State confirm that this Government’s increased investment in things such as the northern hub and the expanded service for the north will continue in the long term?

[Mr McLoughlin]

I am grateful to my hon. Friend for his question. My right hon. Friend the Minister has just told me that he looks forward to going back to the all-party group. My hon. Friend makes a very important point. Just before the summer recess we announced our plans for the railways from 2014 to 2019, which ought to have some very beneficial effects for all constituents. They include the largest electrification ever seen in this country—we are planning to electrify some 850 miles, which is a lot more than the previous Government achieved in 13 years.

EU Transport Council

Lord McLoughlin Excerpts

Thursday 25th October 2012 Written Statements

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

I will attend the first Transport Council of the Cypriot Presidency (the presidency) in Luxembourg on Monday 29 October.

The presidency hopes to achieve general approach on three proposals:

The first is a proposal for a regulation of the European Parliament and of the Council on common rules for the allocation of slots, repealing Council Directive 95/93/EC. The proposed regulation has been subject to intense official-level scrutiny by Council working groups and these discussions are ongoing. Progress to date has been mixed, but the proposition remains acceptable from a UK perspective. I believe that the resulting regulation could help promote the most effective use of airport slots and build on the existing transparent, market-based approach to encourage the more efficient use of scarce capacity at congested airports, while minimising administrative and financial burdens for industry. However, at this stage, it remains unclear whether or not it will be possible to seek a general approach at the October Council.

The second is a proposal for a directive of the European Parliament and of the Council on the enforcement of certain provisions of the maritime labour convention by flag states. The proposed general approach represents a satisfactory outcome for the UK and I will support it as it allows appropriate flexibility to member states, and will not require the UK to make any substantive changes to its proposed implementation of the provisions of the maritime labour convention on flag state responsibilities.

The third is a proposal for a directive of the European Parliament and of the Council amending Directive 2009/16/EC on port state control. I will support the proposal which will not require the UK to make any substantive changes to its proposed implementation of the provisions of the maritime labour convention on port state responsibilities.

An orientation debate will be held on a proposal for a directive of the European Parliament and of the Council on roadworthiness testing for motor vehicles and their trailers (First Reading). The UK strongly supports the ongoing roadworthiness testing of vehicles as a worthwhile contribution to road safety.

However, the UK is very concerned by the potential cost burden of the European Commission’s proposal as it is currently framed. The UK alone has identified costs of over €1 billion without any discernible benefit in road safety. We have also identified significant administrative burdens embedded in the proposal that similarly would produce no road safety benefit. In the current economic climate the UK does not wish to see any additional cost to European citizens, businesses or Governments unless clearly justified by road safety benefits.

The presidency will be seeking a political agreement on the proposal for a regulation of the European Parliament and of the Council amending Council Regulation (EEC) No 3821/85 on recording equipment in road transport and amending Regulation (EC) No 561/2006 of the European Parliament and the Council (First Reading). The UK supports the proposal which strikes a sensible balance between improving the security of the tachograph while ensuring that additional burdens on industry and enforcement authorities are minimised.

The Council will be expected to adopt a proposal for a Council decision on the signing, on behalf of the European Union, and provisional application of the agreement providing a general framework for enhanced co-operation between the European Union and the European organisation for the safety of air navigation (Eurocontrol). The UK supports the proposed agreement. It is important that the significant work Eurocontrol performs on behalf of the European Union is put on a sound contractual and financial basis to help ensure value for money from the proposed €40 million expenditure over four years.

High Speed Two

Lord McLoughlin Excerpts

Thursday 25th October 2012 Written Statements

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

In January the Government announced that we would proceed with plans to build a high speed rail network linking London with Birmingham, Leeds and Manchester. High Speed 2 (HS2) will have a transformative effect on Britain, bringing cities closer together and providing the new transport capacity we need to meet the challenges of the 21st century.

We need to drive forward with this vital national project. In doing so we need to provide support for those facing the disruption that the plans for the railway are causing, while also protecting the interests of taxpayers who will ultimately pay for compensation. We have been clear throughout that we are committed to providing appropriate compensation and assistance for those affected by the building of HS2.

The statutory system of compensation already provides fair compensation for the vast majority of infrastructure schemes. However, given the particular circumstances of HS2, in this case I believe it is right to go above and beyond what is required by law. Today I am launching a generous proposed compensation and support package for public consultation.

Under the proposals set out today all those living closest to the route of HS2, in the so-called “safeguarded area”, will be able to choose to sell their home to the Government—whether it is required for construction or not—at any time after the HS2 route is safeguarded, which is currently expected to happen in spring 2013. Those choosing to sell their homes will receive its full unblighted value (that is, what the property would have been worth had there been no plans for HS2), a home loss payment of 10% of the value of the property (up to a maximum of £47,000) and be reimbursed for reasonable moving costs, including stamp duty on the purchase of a new property of equivalent value.

In rural areas we will establish a “voluntary purchase zone”, extending out from the boundary of the safeguarded area up to 120 metres either side of the line, within which homeowners will have the option to sell their homes to the Government at their full unblighted value at any time after the HS2 route is safeguarded.

For those living beyond both the safeguarded area and voluntary purchase zone but who need to move house during the development of HS2 and find they are unable to sell their property, there will also be a “long term hardship scheme” under which the Government will buy the homes of successful applicants at their full unblighted value.

In addition, under the new sale and rent back scheme, homeowners whose property will need to be acquired will have the option to sell their homes to the Government early and stay in them as tenants until the properties are required for the railway.

We recognise that the owners of properties above tunnels may also be concerned about the potential impact of HS2 and therefore we are bringing in a series of measures designed to provide confidence in these properties.

Finally, we will work with local authorities, housing associations and affected tenants to agree a joint strategy to replace any social housing which is lost.

I must stress that we have already written directly to all those whose homes we currently expect to need to buy in order to build and operate HS2 on the London—west midlands route. The wide-ranging proposals set out today reflect the significant nature of the concern that currently exists in the property markets near the HS2 line of route, they are not a reflection of what the Government believe the long term impacts of HS2 will be. We fully expect that the impacts of HS2 will be considerably less than feared and that property prices will recover over time. However, we recognise that the current property markets near the HS2 line of route may not reflect this.

HS2 will be the backbone of a new transport system for the 21st century, offering the new railway capacity that our country will need to compete and grow. However, we fully recognise that the line will have unwelcome impacts on people living close to the route and I believe that this package of compensation demonstrates the strength of the Government’s commitment to provide the right compensation and assistance to those affected.

Alongside the property consultation published today, we are also publishing a consultation on safeguarding directions for HS2. This will set out the proposed area of land considered necessary to protect the line of route from conflicting developments, that is to say planning permission being granted for developments on land that will be required for the construction or operation of HS2. This will also set the “safeguarded area” within which compensation measures will apply.

Both consultations will close on 31 January 2013.

Oral Answers to Questions

Lord McLoughlin Excerpts

Thursday 18th October 2012 Commons Chamber

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

2. If he will consider abandoning the planned privatisation of the East Coast Mainline rail service.

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

Following the tabling of this question, I considered what the hon. Lady is asking me to do, but I have decided to follow the policy set by the previous Government, who believed in franchising.

[Chi Onwurah]

Since 1997 we have seen Great North Eastern Railway fail and National Express fail, but now we have East Coast trains returning £187 million to the taxpayer. Why on earth would the Minister want to swap that for the unmitigated disaster of the west coast tender? Is not that free-marketism gone mad?

[Mr McLoughlin]

I draw on what the shadow Lord Chancellor, the right hon. Member for Tooting (Sadiq Khan), said when he was a Transport Minister:

“The rail franchising system was examined by the National Audit Office last year, and was found to deliver good value for money”

and “steadily improving” services. He continued:

“Passenger numbers are at their highest levels since the 1940s,”

and

“punctuality is more than 90 per cent.”—[Official Report, 1 July 2009; Vol. 495, c. 425-6.]

I agree with what the right hon. Gentleman said then, and I think it is the right way forward.

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

I congratulate my right hon. Friend on continuing the policies of this Government as well as the last, but there are lessons to be learned for both the east coast and the west coast franchise. Will he ensure that the product of the east coast main line service will remain the premier service in the land?

[Mr McLoughlin]

I want all services to be good services and to serve hon. Members’ constituents, but of course we have lessons to learn—lessons from the way in which certain franchises were unable to continue under the previous Government. I made a statement to the House on Monday in which I said that we would learn those lessons. Two reviews are being undertaken, and I look forward to receiving their representations.

[Lilian Greenwood (Nottingham South) (Lab)]

The Secretary of State continues to claim that privatising the east coast rail service is necessary to deliver new investment, but he knows full well that both the planned improvements for the line and the new generation of inter-city trains are being funded by the taxpayer. In the light of the west coast fiasco, will he rethink his opposition to allowing the east coast line to be run as a not-for-private-profit service, not least since, as my hon. Friend the Member for Newcastle upon Tyne Central (Chi Onwurah) said, it returned £187 million to taxpayers last year—money that, from next year, will have to be split with shareholders?

[Mr McLoughlin]

The hon. Lady is rewriting history: the simple fact is that the previous Government were committed to franchising on the east coast main line—[Interruption.] The hon. Member for Bolsover (Mr Skinner) says he is not bothered about that any more; I shall remind him of things that he supported in the past but now attacks.

[Mr Dennis Skinner (Bolsover) (Lab)]

Who supported the nationalisation of rail?

--- Later in debate ---

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

The Government are committed to an extensive rolling programme of electrification; by the end of the decade, around three quarters of passenger miles travelled in England and Wales will be on electric trains. Electrification will deliver trains that are cleaner, quieter, faster and cheaper to operate, with more capacity for passenger and freight customers.

[Mr Buckland]

Electrification of the great western line through Swindon and beyond will allow increased train capacity. Will my right hon. Friend ensure that the need for more seats to allow more passengers to use the service in comfort will be at the heart of the greater western franchise process when it is reopened?

[Mr McLoughlin]

Indeed it will. I know that my hon. Friend has campaigned for greater capacity on that line for some time. I believe that electrification will lead to an increase of 20% in seating capacity on the line by 2018.

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

I welcome the Secretary of State to his job. As he will know, I welcome the go-ahead for the tram train pilot project between Sheffield and Rotherham. The trams will not be delivered until 2015 and there will probably then be a couple years of evaluation. If the scheme is successful—I am sure that it will be—rolling it out will depend on having underused heavy rail lines that are electrified. Will he bear that in mind when considering future electrification?

[Mr McLoughlin]

I will certainly bear in mind the hon. Gentleman’s comments. He has always fought hard for an improved service for his constituents and in the Sheffield area. I will look closely at what he has said.

[Ian Swales (Redcar) (LD)]

14. Does the new Secretary of State recognise the need for electrification in the Tees valley so that we can have a metro service to connect the large conurbation together?

[Mr McLoughlin]

I take that as a bid, and it is one that I will look at in more detail. I am sure that I will hear much more about it from my hon. Friend.

[Chris Bryant (Rhondda) (Lab)]

We in the south Wales valleys are delighted that those lines are to be electrified, but can the Secretary of State tell us when that work will start and how much faster journey times between Treherbert, Llwynypia and Cardiff will be? If he is unable to pronounce those place names or tell us today, will he please write to me?

[Mr McLoughlin]

I pay tribute to my right hon. Friend the Member for Chesham and Amersham (Mrs Gillan) for managing to get electrification for Wales into the original programme, and I am very glad that that is something that this Government will—

[Chris Bryant]

I welcomed it.

[Mr McLoughlin]

I know that the hon. Gentleman welcomed it. I am glad that this Government will give us something that he never managed to achieve when he was in government. I think that it will start in 2015.

[Neil Carmichael (Stroud) (Con)]

18. In view of the need for strategic planning, will the Secretary of State bear in mind that everyone would like electrified railway lines and that provision should be made to give comfort to investors and for infrastructure developments?

[Mr McLoughlin]

As I said earlier, electrification brings many advantages to the rail network, so what my hon. Friend asks for will be delivered by electrification. The plans we have put forward are the most ambitious put forward by any Government.

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

South-west MPs met yesterday to discuss the pause in the greater western franchise. One of the concerns raised was the impact of the current ring-fenced electrification programme, which had been built into people’s bid plans. The issue was whether we would in fact see a worse service as a result of those electrification plans, as we have been unable to take the franchise bid forward and there are new timetables because of the works required for electrification.

[Mr McLoughlin]

As with any major infrastructure project, there will be delays while that is taken forward, but ultimately there will be a far better service.

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

4. What recent representations he has received on investment for a third railway track between London, Liverpool Street and Brimsdown.

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[Luciana Berger (Liverpool, Wavertree) (Lab/Co-op)]

8. What the cost to the public purse has been of cancelling the award of the west coast main line rail franchise to date.

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

Spend to date on contingency planning by Directly Operated Railways is about £1 million. The cost of reimbursing bid costs to the four bidders is estimated to be about £40 million.

[Luciana Berger]

I thank the Minister for his response. He used the word “estimated”. How much does he intend to pay to First Group, whose shares have fallen by 20% since this fiasco began? How can he be sure that he will be able to protect taxpayers from further and significant liability?

[Mr McLoughlin]

I referred in my answer to the estimates that I gave to the House on Monday. They are the best available estimates at the moment, and that is why I will stick by them.

[Sir Tony Baldry (Banbury) (Con)]

Should not the Opposition be enjoined first to cast the beam out of their own eyes, so that they are better able to take out the mote from their brother’s eye? From the way they bang on about this, one would have thought that Labour in government never wasted a single penny, but the National Audit Office found that it wasted £40 million on an asylum accommodation centre in my constituency where a single sod was never turned and a brick never laid, and we never had a single apology for that.

[Mr McLoughlin]

rose—

[Mr Speaker]

Order. Let us stick to the west coast main line.

[Mr McLoughlin]

In the light of that direction, Mr Speaker, I am not sure how to answer the question. I am responsible for what goes on at the Department of Transport, but if I moved on to the money that was wasted by the previous Government, I think I might need an Adjournment debate.

[Derek Twigg (Halton) (Lab)]

I welcome the Secretary of State and the new members of his team; I am sure that they will do a very conscientious job.

What has been the cost of the consultants and legal advisers employed by the Department in the run-up to the legal case?

[Mr McLoughlin]

I do not have the exact figures at the moment. My right hon. Friend the Minister of State answered some written questions on the matter yesterday, and a wide range of figures are available. The figures I gave in response to an earlier question are £40 million and £1 million.

[Nigel Mills (Amber Valley) (Con)]

Will the Secretary of State confirm what the cost would have been of proceeding with a flawed tendering process and awarding that contract? On the same basis, will he also reconsider the Thameslink rolling stock contract, to make sure that there has been no mistake with that either?

[Mr McLoughlin]

I assure my hon. Friend that I asked those questions rigorously in the Department and I have been assured that this was a wholly different process. As I have said, I am awaiting the outcome of the two inquiries that I have set up.

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

Will the Secretary of State admit that taxpayers are set to be stung for far more than the £40 million he is paying back to bidders for the west coast franchise, because what he has not included in that figure is the cost of paying back bidders for the suspended Great Western, Essex Thameside and Thameslink franchises? Will he now come clean to taxpayers about exactly how much of their money will be poured down the drain as a result of his franchising fiasco?

[Mr McLoughlin]

I have given the figures that are available to the House. The other contracts to which the hon. Lady refers are on hold—they have not been let.

[Maria Eagle]

Is it not the truth that the cost to taxpayers is likely to be tens of millions of pounds more by the time the Secretary of State has Britain’s rail services back on track? He will hand millions over to private train companies; millions will be spent running three competitions for this franchise when he should have been running only one; and millions more will be lost if companies decide to sue the Government for the losses that his Department’s incompetence have caused them. Instead of the Department for Transport’s own board investigating itself, do not taxpayers deserve a truly independent inquiry into what went wrong and who was to blame for so much of their money being poured down the drain?

[Mr McLoughlin]

When I was told about this incident and the mistakes that were made, I ordered two immediate inquiries. I wanted to get to the bottom of it as quickly as possible, and that is what I have done. I am sure that we will not be short of a number of inquiries, which will take place subsequent to the Laidlaw and Richard Brown inquiries. I expect that the Public Accounts Committee will want to look at the issue.

[Karen Lumley (Redditch) (Con)]

10. What recent assessment he has made of the potential benefits of High Speed 2 to businesses in Birmingham and its surrounding areas.

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

HS2 will transform journey times, capacity and connectivity between the Birmingham stations and Leeds, Manchester and London, and will release substantial capacity on the existing rail network. This will help the wider west midlands area to fulfil its economic potential.

[Karen Lumley]

Will my right hon. Friend tell the House how many jobs will be involved in the construction and operation of the first phase of the railway to the midlands?

[Mr McLoughlin]

A number of opportunities will become available as a result of HS2. We expect there to be 9,000 jobs during construction and 1,500 permanent operational jobs, as well as a huge amount of regeneration in the areas served by HS2.

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

HS2 is important to Scotland as well as those places south of the border mentioned by the Secretary of State. Will he update us on what discussions he has had with the Scottish Government on the plans for HS2 to provide benefits to Scotland as well?

[Mr McLoughlin]

I am due to meet Scottish Ministers in the not-too-distant future, and I have had one phone conversation with the First Minister. Last week I announced that we will undertake a study to take HS2 further north into Scotland.

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

On 7 July 2011, in a letter on transparency to all the Secretaries of State, the Prime Minister wrote:

“As you know, transparency is at the heart of our agenda for Government.”

The Department and the Cabinet Office are currently concealing information and refusing to publish the Major Projects Authority report on HS2. Will the Secretary of State now show that the Prime Minister’s words are not meaningless when it comes to HS2 and publish that report immediately?

[Mr McLoughlin]

HS2 will be the subject of a huge amount of parliamentary time as we prepare the hybrid Bill and bring it before Parliament in the next Session.

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

Arguably one of the benefits of HS2 is that it will create extra capacity on the conventional network. However, these services are highly unlikely to be profitable and will require extra subsidy. What calculations has the Department made about the extra cost of that subsidy and the subsequent Barnett consequentials that the Welsh Government will be entitled to?

[Mr McLoughlin]

We are some way off getting to that stage. I am dealing with a number of other figures at the moment, so I will take away the hon. Gentleman’s question and think about it a little more deeply, rather than give a rushed answer at the Dispatch Box.

[Andrea Leadsom (South Northamptonshire) (Con)]

Is my right hon. Friend aware of the concerns of constituents up and down the route of the line who have been unable to access the exceptional hardship scheme? When will he start his consultation on fair compensation? We said that we would not allow anybody to have to pay with their own assets or in terms of their own life, and yet that has proven to not be the case.

[Mr McLoughlin]

I well understand that point and the opposition that HS2 has generated. Any major infrastructure brings about a lot of opposition. I hope to be able to publish the Government’s consultation on compensation in the not-too-distant future.

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

In addition to my recent statements on franchising, last week I announced that passengers will benefit from a reduction of up to 2% in the planned rises in many train fares. That will benefit more than a quarter of a million annual season ticket holders and more weekly and monthly ticket holders. I also announced £170 million for 57 vital road schemes to boost the economy, reduce congestion and improve safety. Earlier this month the Minister of State, my right hon. Friend the Member for Chelmsford (Mr Burns), announced the introduction of new rules better to protect holidaymakers from losing out if their travel company fails, giving UK holidaymakers a simple, straightforward way to know what the financial protection for their holiday is.

[Craig Whittaker]

Metro in west Yorkshire has commissioned a bus service for the upper Calder Valley, a rural community, which for the past year has been served by an incredibly unreliable and poor service. Can the Secretary of State confirm whether there is a process in place for holding a commissioner to account when they do not take action on poor performance against contracts?

[Mr McLoughlin]

I sympathise with the obviously frustrating experience that my hon. Friend’s constituents are having. I know that he has been in correspondence with the Under-Secretary of State for Transport, my hon. Friend the Member for Lewes (Norman Baker), who leads on the matter in the Department. The Government have provided an extra £10 million of funding this year to help kick-start the development of community transport services in rural areas, and west Yorkshire received £385,000 of that. I am interested in hearing about the experiences of my hon. Friend’s constituents, however, and we will look into the matter.

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

On Tuesday the Road Safety Foundation, chaired by Lord Dubs, launched its annual report. It stated:

“Simple attention to safety engineering detail has resulted in extraordinary cuts in road deaths and serious injuries”.

Other leading countries in road safety are committed to improving the safety star rating of their national road networks. What emphasis are our Government placing on that?

[Mr McLoughlin]

We place a lot of emphasis on it. I spent a morning a few weeks ago with road traffic officers in the west midlands, looking at how they operate their managed motorways. They have had great success in reducing accidents on the M42 since it has become a managed motorway. Road safety is incredibly high on our agenda, and as I said, we have announced £170 million for relieving pinch points, which I hope will also help safety.

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

T2. I welcome the Government’s decision to set up a commission on aviation capacity. I hope that it will create a new, innovative solution to capacity needs and realise that a third, fourth and fifth runway at Heathrow is not the answer. May I urge my right hon. Friend to encourage the commission to report as quickly as possible?

[Mr McLoughlin]

I believe that setting up the commission was the right way to move forward. I hope to be able to announce the rest of the commission’s membership in the not-too-distant future. My hon. Friend will be able to make recommendations to the Davies commission, which will bring interim recommendations to the Government in 2013. Although some people say that it will take rather a long time, it will not take that long once it gets under way.

[Heidi Alexander (Lewisham East) (Lab)]

T3. Given the Department’s abject failure to manage the franchise process for the west coast main line, what are the Secretary of State’s views on the possibility of Transport for London being the franchising authority in future for the London parts of the south-eastern network?

[Mr McLoughlin]

I am due to meet the Mayor of London in the next few hours, and that may be one issue that he wants to bring forward to me. People will have different views about whether that would be the right way forward.

[Mark Garnier (Wyre Forest) (Con)]

T6. When addressing the thorny issue of airport expansion, will the Minister look carefully at the huge economic benefits that can be offered at Birmingham airport? Not only is there extensive local support for expansion, but it is an excellent airport.

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

To return to the subject of the west coast main line, when the Secretary of State made a statement on Monday, I made him aware of a figure given to me by insiders in the industry that suggested a cost of at least half a billion pounds as a result of this debacle. Has any application to the Treasury for additional contingency funding been made as a result?

[Mr McLoughlin]

No.

[Zac Goldsmith (Richmond Park) (Con)]

British pilots in my constituency are concerned that EU proposals on pilot flight time limitations will weaken the current rules and that, as a result, flying will become less safe. Instead of lowering our standards to harmonise with the EU, should not the EU be raising its standards to harmonise with ours? Failing that, will the Department at least explore with the British Air Line Pilots Association additional safety measures to cover those areas that would otherwise see standards drop?

[Julie Hilling (Bolton West) (Lab)]

As a directly operated railway, the east coast main line returned £187 million to the taxpayer last year. How much money will Virgin pay to the taxpayer during the period of extension to its west coast main line franchise?

[Mr McLoughlin]

Negotiations are ongoing.

The Minister for Women and Equalities was asked—