Intercity Express and Rail Electrification

Lord Hammond of Runnymede Excerpts

Tuesday 1st March 2011 Commons Chamber

[The Secretary of State for Transport (Mr Philip Hammond)]

With permission, Mr Speaker, I shall make a statement on the Government’s plans for extension of the electrification of the Great Western main line and for the procurement of a replacement for the existing diesel inter-city trains. The two issues are closely connected. First, I shall address the provision of a new generation of inter-city 125 mph trains to take advantage of the electrification of the Great Western main line and to allow the phasing out of most of the ageing diesel InterCity 125s.

In February 2009, the intercity express programme, launched by the previous Government, identified Agility Trains, a consortium of Hitachi Rail and John Laing plc, as the preferred bidder to provide a new fleet of inter-city trains. Subsequently, the previous Government placed the process on hold and ordered a review of the procurement by Sir Andrew Foster. Last summer, recognising the fiscal challenges that the UK faces and the impact of the new Government’s plans for high-speed rail to Leeds and Manchester, Agility put forward an improved, lower-cost proposal to provide the required service through a mixed IEP fleet with some all-electric trains and some with a combination of electric and diesel power, allowing it to operate through services beyond the electrified railway. The proposal retained the more modern electric InterCity 225s on the east coast main line, as the previous Administration had proposed.

We have reviewed the proposal against the alternative of an all-electric fleet, with purpose-built diesel locomotives coupled to trains to haul them beyond the electrified railway. Either way, it would represent a multi-billion pound investment for this country, underpinning the operation of inter-city services on the conventional railway for many years to come, and it is imperative that the right choice be made.

As I said at the time of my statement to the House on 25 November, there were complex legal, technical and commercial issues to be addressed and both the Government and Agility Trains, as preferred bidder, recognised that. Over the past few months, we have worked together on these issues and I can now announce that I am resuming the IEP procurement and proceeding with the proposal that Agility Trains has put forward as preferred bidder. We will now work with Agility Trains with a view to reaching financial close by the end of this year. That is, of course, subject to the Government’s continuing to be satisfied that the proposal offers value for money as the commercial negotiations are concluded and that the final arrangements are compliant with the United Kingdom’s European Union obligations. This deal will allow us to provide better, faster, more comfortable services and to continue providing through journeys between London and parts of the rail network that are not electrified. In total, there will be over 11,000 more peak-time seats each day on the Great Western main line and the east coast main line post-IEP compared with today.

Hitachi is today confirming its plans to locate its European train manufacturing and assembly centre at Newton Aycliffe in County Durham. That investment is expected to create at least 500 direct permanent jobs, as well as hundreds of temporary construction jobs. Thousands more job opportunities will be created in the UK manufacturing and service supply chains. Coming just days after the news of the reopening of the Redcar steelworks, this is a massive and very welcome shot in the arm for the skilled work forces of the north-east’s industrial heartland.

I turn now to the related issue of electrification of the Great Western main line. I announced to the House on 25 November that, over the next six years, Network Rail will electrify the commuter services on the Great Western main line from London to Didcot, Oxford and Newbury. I recognise that this announcement, although welcomed in the Thames valley, left unanswered the clear aspirations of rail users further west for the extension of electrification to Bristol and into Wales. I and my right hon. Friend the Secretary of State for Wales have subsequently considered the options for extending electrification, alongside the Government’s consideration of the proposals for replacement of the current diesel InterCity trains, and in close consultation with the Welsh Assembly Government.

We have concluded that there is a case for extending electrification westwards to Bristol and Cardiff, and I am today asking Network Rail to add that major extension to its electrification programme immediately. This is good news for Wales and the south-west against a backdrop of public spending constraint as we deal with the legacy of debt that we inherited. Bringing electrification to Cardiff will mean that we are linking, for the first time, the capital cities of England, Scotland and Wales by electrified rail. These measures will deliver a London to Cardiff journey time of 1 hour and 42 minutes and will shave 22 minutes off the London to Bristol journey.

I have received representations calling for the electrification of the Great Western main line to be extended as far west as Swansea and we have looked carefully at the arguments. The business case for electrification is heavily dependent on the frequency of service. Services between London and Swansea currently operate at a frequency of only one train an hour off-peak. There is no evidence of a pattern of demand that would be likely to lead imminently to an increase in this frequency. Consequently, I regret to have to say that there is not, at present, a viable business case for electrification of the main line between Cardiff and Swansea.

However, because of the decision to proceed with Agility’s proposal for a bi-mode train, journey times from London to Swansea will be shortened to 2 hours and 39 minutes—20 minutes faster than today—with trains switching automatically to diesel power as they leave Cardiff. As the constraining factor on the south Wales main line is speed limitations dictated by the geometry of the line, there would be no time-saving benefits from electrifying the line from Cardiff to Swansea. However, the policy of the Government is to support a progressive electrification of the rail network in England and Wales, for environmental reasons among others. My right hon. Friend the Secretary of State for Wales and I will therefore keep under active review the business case for future electrification of the Great Western main line between Cardiff and Swansea in the light of developing future service patterns.

I have a further announcement to make to the House. In the course of the examination of the case for electrification in south Wales that I and my right hon. Friend have undertaken, we have established, at an initial high level, that there appears to be a good case for electrifying the key valley commuter lines north of Cardiff via Pontypridd and Caerphilly to Treherbert, Aberdare, Merthyr Tydfil, Coryton and Rhymney, as well as the lines to Penarth and Barry Island to the west. My Department will therefore work with the Welsh Assembly Government to develop a full business case for the electrification of the Cardiff valley lines during the next rail investment control period beginning in 2014. The Welsh Assembly Government will need, in parallel, to consider the case for specifying suitable electric trains for those routes when the Wales and Borders franchise is re-let in 2018. That would, of course, be a prerequisite for electrification proceeding, and the timetable for franchise re-letting and re-specification necessarily dictates the time scale of the proposed electrification.

On the basis of our preliminary evaluation, the valleys electrification represents the best value for money rail electrification investment that can be made in Wales. It promises to bring all the benefits of electric commuter trains—faster acceleration, greater comfort, cleaner and greener travel, and greater reliability—to rail users in south Wales. It would have a significant effect on the economy of Cardiff and the valleys by deepening labour markets, improving connectivity and significantly enhancing the attractiveness of the area to investors. Coupled with the electrification of the Great Western main line, it would represent a major boost to the economy of south Wales as a whole. These three decisions—on the intercity express programme, on Great Western main line electrification and on building the business case for electrification of the valleys commuter lines—represent a major further investment in UK rail infrastructure. They follow the announcements that I have already made on Crossrail, Thameslink, tube upgrades, Thames valley and north western electrification and additional rolling stock.

The decisions sit alongside the Government’s proposals for high-speed rail, the consultation on which I announced to the House in a written statement yesterday, as testimony to this Government’s commitment to investment in the future of Britain’s railways. They represent excellent news for passengers on the Great Western main line and the east coast main line, for commuters on the Cardiff valley lines and for the economies of south Wales and north-east England as a whole. I commend this statement to the House.

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

I thank the Secretary of State for the early sight of his statement—he actually sent me two statements, although they appear to be the same. I will begin by welcoming the much delayed green light that he has today given to the new intercity express programme, which was launched by Labour before the last election. That this programme is now to go ahead, with the significant boost for jobs that he referred to, is testament to the tenacity and tireless campaigning of my hon. Friend the Member for Sedgefield (Phil Wilson), The Northern Echo, the local community trade unions, particularly Unite, and the local work force. I congratulate them all on what has been an incredible triumph for their campaign.

Can the Secretary of State confirm when passengers will first be able to enjoy these new trains? Have the delays in making the announcement had any impact on the delivery date for the trains? Will he confirm whether he has made any other changes to the contract, for example to the number of trains or the cascading plan for the existing rolling stock, as a result of today’s announcement?

The Opposition obviously welcome the decision to go ahead with the electrification of a further stretch of the Great Western main line to Cardiff. It is the result of the commitment we made in government and also the efforts made since the Secretary of State’s last statement in November by my right hon. Friend the Member for Neath (Mr Hain), my hon. Friend the Member for Pontypridd (Owen Smith), the First Minister of Wales, Carwyn Jones, other MPs and Assembly Members, and the business community across south Wales. I am glad that the Secretary of State has listened to them about the vital need for modernisation, which will speed up the journey time between our capitals from 2 hours five minutes to 1 hour 40 minutes, which has to be welcome. It is a real boost to business, with the potential for investment and jobs, and to Wales.

However, does the Secretary of State understand the deep upset that will be felt by people in Swansea and across Wales at the St David’s day disappointment that the electrification will not continue as far as Swansea, as Labour had intended? He has broken his manifesto commitment to

“support the electrification of the Great Western line to South Wales.”

The Secretary of State for Wales, who I am glad to see is in her place, was pretty quiet yesterday when the Transport Secretary confirmed plans for a high-speed rail route through her constituency, which she previously said she could not support. The people of south Wales will expect her to be more vocal today in explaining why the Government have let down the people and businesses that are further south and west than Cardiff.

The Transport Secretary has just extolled the virtues of electrification, including, in his own words, its “significant effect on the economy of Cardiff and the valleys—deepening labour markets, improving connectivity and significantly enhancing the attractiveness of the area to investors.” Why cannot the people of Swansea, and of west Wales beyond Swansea, also have that advantage? Can he confirm when the electrification of the line to Cardiff will be completed, and why, as far as he is concerned, electrifying just 40 more miles of track to Swansea appears to be such a bad idea?

Is it not true that the case for electrification was previously approved by the Treasury? Anybody who has dealt with the Treasury, as we now all have, knows that the rate of return would have had to meet its tough criteria, so why does the right hon. Gentleman continue to suggest that there is no proper business case for electrification all the way to Swansea? Does he accept that, if Swansea is not a part of the single roll-out construction programme, the Government will incur 20% additional costs to stop construction and then take it up again? He is in fact saying that the stretch of line from Cardiff to Swansea will not be electrified at all—except by incurring unnecessarily high extra costs.

I welcome in the right hon. Gentleman’s statement the part about looking at further electrification in Wales on the valleys train lines, but he is holding out the promise of potentially producing a post-dated cheque at a later date, because there is no funding available in this spending review period. He says that he has made a decision about the matter, but his only decision has been to look at whether there is a business case, so there is no guarantee of his carrying out the project. Perhaps he is trying to deflect attention from the fact that he is failing to meet his manifesto commitment to take electrification all the way to Swansea.

Will the right hon. Gentleman update the House on where his Department is with the procurement of the 1,200 new carriages for Thameslink? We still have not heard about that major project, in which many UK jobs are at stake, and it would be good if we did not have to put up with Thameslink being hit by the same delays that have beset the IEP project. Does he have an updated time scale for when the new Thameslink and Crossrail trains will benefit passengers by actually being in service? Will he explain what impact the delay will have on the plans for cascading the existing rolling stock?

Why, when the right hon. Gentleman must have known that he was making a statement today, did he choose yesterday to slip out by written answer—without informing the media or the House—a decision to end all funding for local rail schemes that local authorities and integrated transport authorities develop? His decision means that no new schemes will be able to go ahead between now and April 2015. Can he explain why that decision was not made in the comprehensive spending review, and why he put it out yesterday under cover of his publication of the high-speed rail consultation?

As I have made clear, I welcome today’s confirmation of the investment in the rail network that Labour planned and announced when in government. The additional electrification and the major project to replace our outdated inter-city fleet will significantly improve the passenger experience on our rail network and bring economic benefits to the country. However, the unnecessary delays in bringing forward those plans, and the decision to bring disappointment to south Wales on St David’s day, are just further evidence of the dither and delay that seems to grip the right hon. Gentleman’s Department. Both of his announcements today imply more delay than the original plans. His third announcement on further electrification in Wales is another example of jam tomorrow but no money today, and no guarantee of progress. In the end, he will be judged on what he delivers, and Labour Members will be looking closely at that.

[Mr Hammond]

We have been treated to a classic rant. There are two types of people in this world: the glass-half-full brigade and the glass-half-empty brigade—and let us guess which one the hon. Lady belongs to. She is determined resolutely to find bad news even in a statement about massive investment at a time of constrained public spending.

The hon. Lady, apart from treating us to a read-out of her contacts book, which was fascinating, had the nerve to accuse us of unnecessary delays. I would like to remind her that it was the previous Administration who pulled the IEP procurement and asked Sir Andrew Foster to review it, reopening the issues. I can tell her today that trains will start to be delivered to the Great Western main line from 2016 and on to the east coast main line from 2018.

On the question of electrification, the hon. Lady mentioned the right hon. Member for Neath (Mr Hain), the man who talks a good talk about electrification but was, if I remember rightly, Secretary of State for Wales in the previous Administration—an Administration who, in 13 years, did not manage to electrify a single inch of railway in the Principality. A couple of weeks ago, the hon. Lady, who is now so keen on electrification in Wales, was telling us that Labour had no commitment to electrification in Wales because it was conducting a spending review and everything was up for grabs. That was until the very same right hon. Member for Neath came along and slapped her down, and made her change her tune.

The hon. Lady talked about our manifesto commitment at the last general election. I can tell her—[Interruption.] I have it right here; I will quote it back to her in a minute if she wants. Our manifesto commitment at the last general election was to electrify the railway into south Wales. I know that she is not shadow Secretary of State for Wales, but even she should know that Cardiff is in south Wales. We have delivered today on the commitment that we made.

The hon. Lady made a plea for electrification to Swansea. I understand that people in Swansea will be disappointed by the announcement that I have made today because of the expectations that the previous Government raised without bothering to establish that there was a sound business case for the proposed expenditure. However, she has not, at any point, made a logical argument for the electrification that she pleads for. I have told her that the bi-mode trains that we are procuring will deliver a journey time saving of 20 minutes to Swansea—the same journey time saving that the previous Government were promising through electrification. We will deliver the benefits to the people of Swansea from electrification to Cardiff and continuing bi-mode train operation onward from Cardiff to Swansea. She asked me about the electrification to Cardiff. That will be completed in 2017.

On the valleys electrification, the hon. Lady says that there is no funding in the spending review. I am disappointed that she has not yet grasped the complexities of rail capital funding. Network Rail funds electrification through its regulated asset base. The investment programme is set in control periods, the next of which starts in 2014. What I have announced today is that we have established that there is, on the face of it, a strong business case for this investment in the valleys electrification. We will work it up with Network Rail and the Welsh Assembly Government, with a view to including it in the next investment programme period.

[Several hon. Members]

rose—

[Roger Williams (Brecon and Radnorshire) (LD)]

In the face of gloom, doom and whingeing from the Opposition, this is really good news for Wales. St David’s day will be toasted with a full glass in Cardiff and a nearly full glass in Swansea. I am pleased that the Secretary of State said that he will continue to review the case for electrification to Swansea. Will he confirm that he will do so?

[Mr Hammond]

As I have said, my right hon. Friend the Secretary of State for Wales and I will continue actively to look at the case for electrification to Swansea. I said that we would do so in the light of developing service patterns. The important point is that once the valleys lines are electrified, it is quite possible that new electric services could be provided that head through Cardiff and to the west, which might change the economics, and thus the business case, for the Cardiff to Swansea section.

[Phil Wilson (Sedgefield) (Lab)]

I congratulate the Secretary of State on his announcement on the intercity express programme. As he knows, the investment and jobs involved are very important for my constituents in north-east England. Will he join me in congratulating the Back on Track campaign, which was led by The Northern Echo, Durham county council, the chamber of commerce and the northern TUC? Will he also congratulate my constituents on the way in which they brought this matter to the attention of the Department for Transport, and helped it to make the right decision?

[Mr Hammond]

I am happy to acknowledge the hon. Gentleman’s tireless battle for the IEP. He has arranged for various worthies from his constituency to visit me and the Department to make the case. This has been a complex process with legal, technical, financial and commercial issues to resolve. We have worked closely with Hitachi to get to this point. I understand that he wanted us to get here more quickly, but I assure him that we have progressed as fast as possible.

[Jonathan Evans (Cardiff North) (Con)]

As a Cardiff Member of Parliament, I thank my right hon. Friend unequivocally for today’s announcement. I also congratulate my right hon. Friend the Secretary of State for Wales, who has fought her corner wonderfully. Making the case for the electrification of the valley lines in the announcement was something that Opposition Members did not expect and that they were never committed to. From June 2009, they were supposedly committed to electrification, and yet nothing whatsoever was done. Will my right hon. Friend the Secretary of State for Transport commit to ensuring that this announcement is carried forward, unlike the announcements that were made by those who are now on the Opposition Benches?

[Mr Hammond]

Absolutely; I give my hon. Friend that commitment. The hon. Member for Garston and Halewood (Maria Eagle) used most of her time in responding to the statement by talking about Swansea. The evidence shows that there is a much stronger business case for the electrification of the valley lines. When a limited amount of public money is available, it is absolutely incumbent on us—she can ask her sister about this—to ensure that it is spent on the areas that deliver the best value for money to the Exchequer.

[Mrs Siân C. James (Swansea East) (Lab)]

Having fought a long and hard campaign to get rail electrification in Swansea, I congratulate Cardiff and the valleys because their glass is very much full at the moment—I will raise a glass to them. Unfortunately, I will have to go back to my constituents in Swansea and explain that they are not as important. I will have to explain that modern transport and infrastructure, and opportunities for investment and tourism are not on the cards for them. The Secretary of State spoke about there being no good financial case for rail electrification to Swansea. All the trains along the south Wales main line—I will talk slowly to make this point—

[Mrs James]

Most of the trains along the south Wales main line have to go to Swansea, because it is a turnaround point. How can we increase the pattern of trains to Swansea if we have already said that trains do not go there as often as we need them?

[Mr Hammond]

Obviously I understand that the hon. Lady is disappointed. She has made her pitch to me repeatedly, having caught me every time I have passed behind the Chair over the past few months. I am sorry that I have had to be rather uncommunicative, but she will understand the reasons. I am disappointed that she has not acknowledged that the huge time-saving benefit from electrification will be delivered through the introduction of bi-mode IEP trains and the electrification of the route as far as Cardiff. Because of the line speed restrictions, there would be no further time savings for Swansea even if we electrified the rest of the line. Huge benefits will be delivered to Swansea—a 20 minute time saving is extremely significant. I hope she will at least acknowledge that that will be a huge benefit for the area that she represents.

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

I warmly welcome the Secretary of State’s announcement this afternoon. Will he confirm my memory that Isambard Kingdom Brunel’s Great Western main line runs from Swindon, through Chippenham and Bath, to Bristol Temple Meads, not on the branch line from Bristol Parkway and onwards to Wales? Does he intend to allow the electrification of the line to Bristol Temple Meads, as well as the branch line to Wales?

[Mr Hammond]

I am not sure whether I mentioned this in my statement, but my hon. Friend is absolutely correct—the electrification will include the line through Bath to Bristol Temple Meads and also the line from Bristol Parkway to Bristol Temple Meads. That will ensure that we can increase the frequency of London-Bristol Temple Meads trains to four per hour and shave 20 minutes off the journey time to Bristol Temple Meads from London, using the Bristol Parkway route rather than the Bath route to get the additional time saving.

[Mr Elfyn Llwyd (Dwyfor Meirionnydd) (PC)]

I fully appreciate the announcement as far as Cardiff and the valley lines are concerned, and I congratulate the Government on it. In a spirit of, I hope, reasonable suggestion, may I ask the Government to ensure that work is done urgently to see how the line speed from Cardiff to Swansea can be improved in due course, so that electrification can be taken across to Swansea with, I am sure, a good business case?

--- Later in debate ---

[Mr Hammond]

I welcome the right hon. Gentleman’s comment, because it is at least a constructive comment that plays into the need to develop a proper business case for a proposal. We can consider line speed improvements, and indeed the current rail investment programme includes a significant number of them, including some on the network in south Wales. However, I understand that the geography of the area creates some difficulties and potentially some very significant expense in enhancing the line speed between Cardiff and Swansea.

[Martin Horwood (Cheltenham) (LD)]

Having travelled the Great Western main line this morning, may I welcome the statement warmly? It promises far more quiet, efficient, reliable and energy-efficient trains for my constituents and many others than the last Government ever delivered. It is good news for English and Welsh jobs, and incidentally it makes an even stronger case for the redoubling of the Swindon to Kemble line, which would add resilience.

In the Department’s long-term thinking, will Ministers still look favourably on eventual electrification to Swansea and on longer franchises for train operators, which might in time enable them to specify their own rolling stock? That would add even more to an increasingly bright future for Britain’s railways.

[Mr Hammond]

As the hon. Gentleman will know, we have already announced that we intend to operate a longer default franchise period of 15 years, to start to stimulate exactly the type of behaviour that he talks about.

It is the Government’s policy to support a progressive electrification of the railway throughout England and Wales—Scotland makes its own rail infrastructure investment decisions—not only because of time savings but because of the environmental case for an electric railway. Through progressive investment control periods, we will continue to look to roll out the electrification of the railway across England and Wales.

[Geraint Davies (Swansea West) (Lab/Co-op)]

This is a sad and disappointing St David’s day for Swansea—[Hon. Members: “Ah!”] Well, it is, particularly in the light of the fact that the Secretary of State denied a meeting with private sector stakeholders and Swansea university, alongside the MPs of Swansea and west Wales, to examine the business case for inward investment in further electrification. Given that Swansea is the second worst-hit city in the UK from Government cuts, will he undertake to have that meeting at long last with those stakeholders, including the university, even though he has made the decision already? That would enable them to discuss the co-operation and inward investment of Rolls-Royce, Tata, Boots and other companies that are coming to Swansea. They would have made that case had he been bothered to have a meeting with them.

[Mr Hammond]

I can tell the hon. Gentleman that my officials discussed the business case for electrification to Swansea with Welsh Assembly Government officials exhaustively, but he misses the fundamental point. He talks about Rolls-Royce and Tata, and if they are looking at rail investment as a criterion for investment, they will be examining journey time savings. The IEP announcement that I have just made introduces a journey time saving of 20 minutes to Swansea. He should go back to Swansea, rejoice in that saving and pick up the phone to Rolls-Royce and Tata to tell them how it improves the case for investment in his city.

[Alun Cairns (Vale of Glamorgan) (Con)]

This is a first-class announcement on St David’s day for my constituency and the whole south Wales economy. Announcing electrification of just the main line would have been good, but to consider the valleys lines and the line to Barry Island, which is in my constituency, gives the statement gravitas.

My right hon. Friend the Transport Secretary has mentioned the inaction of the former Secretary of State for Wales, but will he outline what action was taken by the current Secretary of State for Wales in bringing about pressure for this announcement?

[Mr Hammond]

My right hon. Friend the Secretary of State for Wales and I discuss such matters all the time—I always discuss with them matters that trespass into the jurisdictions of my right hon. Friends the Secretaries of State for Wales and for Scotland—but it would be inappropriate for me to give the House details of discussions that occur between Cabinet colleagues.

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

I welcome the announcement of major investment in rail, although there is considerable disappointment in relation to Swansea. Will the Secretary of State indicate what the benefits of that investment will be in terms of jobs and economic growth, and when does he expect them to materialise?

[Mr Hammond]

If the hon. Lady is talking about the wider package, I can tell her that there are obviously many components to it. Jobs will be created through the electrification process over a number of years as Network Rail gears up to deliver that programme, and others will be created at Newton Aycliffe for the IEP. Further jobs—thousands of jobs—will be created in the UK supply chain that will support that major investment which, incidentally, is not just about delivering the UK IEP, but about Hitachi’s manufacturing and development base for its involvement in European rail in future.

In addition, of course, there will be huge benefits in the south Wales area from the electrification of the valleys lines—what economists like to call agglomeration benefits, meaning the reinforcement of the economy that happens when connectivity is improved and labour markets are deepened. Those will allow people in towns up the valleys lines, some of which, frankly, are among the most deprived in Wales, more readily to access the markets and economy of Cardiff, which is a powerhouse for the area. That will bring significantly increasing prosperity and wider opportunities for people who live in the Cardiff hinterland.

[David T. C. Davies (Monmouth) (Con)]

Had the Secretary of State announced that he was electrifying and putting a high-speed train on every branch line in Wales, Opposition Members would still object. Will he instead accept the congratulations of all those who are worried that some want Wales to become more separate? His statement is a tangible way of putting Wales at the heart of the UK. Dewi Sant will be looking down today with a glass not half full, but almost overflowing.

--- Later in debate ---

[Mr Hammond]

My hon. Friend puts it very eloquently. He has clearly spotted the glass-half-empty tendency of Opposition Members, which disappoints me. I cannot think why they would wish to score political points today.

[Helen Goodman (Bishop Auckland) (Lab)]

The Secretary of State probably knows that the first steam trains were made in Shildon, so it is quite right that the skills of the County Durham work force should be recognised in his statement. He says that he will work for financial close over the course of this year, but can he say when jobs will materialise?

[Mr Hammond]

I understand that Hitachi will issue a press release broadly simultaneously with my statement that will set out more details of its plans, but clearly, it will be unable to start building factories until financial close occurs later this year. There will then be a factory to build, which will create hundreds of temporary jobs in the area. I have heard that the owners of the industrial estate on which the factory will be built have also indicated that they will expect to build other units simultaneously on a speculative basis in anticipation of suppliers to Hitachi wanting to locate around the factory. I therefore hope that there will be significant construction job creation quite early in the programme. Then, of course, Hitachi will begin recruiting for the permanent jobs for the actual building of the trains—my guess is that this will happen later next year, but it is for the company to confirm.

[Duncan Hames (Chippenham) (LD)]

I welcome the Secretary of State’s clarification that electrification to Bristol will also take in the line through Bath and Chippenham. Can he confirm my estimation that this proposal might even bring down journey times from London Paddington to Chippenham to less than one hour?

[Mr Hammond]

It may surprise the hon. Gentleman to know that among the many destinations for which I have journey time savings, Chippenham does not appear, I am afraid. However, I will be very happy to get back to him immediately after this statement.

[Nia Griffith (Llanelli) (Lab)]

My constituents will be very disappointed that electrification will be starting in Cardiff, but not in Swansea. However, will the Secretary of State look into the franchising agreement and consider whether anything can be done so that my constituents can benefit more from reductions in journey times by having more through bi-mode trains that go all the way from London to Llanelli, Kidwelly and beyond to the Irish ferries, rather than having to change? That is the case with nearly all the trains at the moment, and it involves an enormous amount of delay and wasted time.

[Mr Hammond]

I am happy to look at the issues that the hon. Lady raises. Of course, responsibility for franchised operations is shared between the UK Government, in respect of the through services from London, and the Welsh Assembly Government, in respect of locally originating services. However, I will certainly consider her point. The IEP train fleet will give us greater flexibility.

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

I welcome the statement, particularly the increase in passenger capacity that will result. My right hon. Friend will be aware that over the next five years Reading station will undergo a major redevelopment through Government investment. Will he ensure that all necessary works for IEP and electrification are undertaken alongside the alterations made to Reading station, because I am sure that it would result in cost savings?

[Mr Hammond]

My hon. Friend makes a very sensible point. I will raise it at my next meeting with the chief executive of Network Rail, and ensure that it is being done in a properly co-ordinated manner.

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

I welcome today’s announcement on the intercity express programme, and I look forward to welcoming the trains themselves to Newcastle in due course. Will the Secretary of State confirm that he will work with his colleagues across Government to ensure that local communities, businesses, universities and further education colleges receive the kind of support that they need to ensure that the Hitachi centre can be a platform for jobs and growth for the region as a whole?

[Mr Hammond]

The hon. Lady is absolutely right that when we get such an opportunity to reinforce our skills base and move up the value-adding curve with our work force, we have to seize it. There is already a project in Nottingham that I am hoping to visit very shortly that involves rail engineering apprenticeships, and there is another project in Crewe that I have been invited to go and see. We need to generate more of these projects in response to the investment opportunities arising. I agree completely with the sentiment that she expresses.

[Stephen Hammond (Wimbledon) (Con)]

I welcome unequivocally my right hon. Friend’s statement and its excellent news for rail infrastructure. He will be aware that ongoing designs for existing platforms are usually more cost-effective than new designs. Will he confirm to the House, therefore, that the revised Agility proposal represents better value for the British taxpayer both in what it represents and in cost terms?

[Mr Hammond]

The value-for-money appraisal certainly shows that the revised Agility proposal represents the highest value for money of the proposals that we have considered for the replacement of the inter-city diesel express trains. It represents a strong value-for-money case and is affordable. Hitachi has responded in an exemplary way to the Government’s commitment to high-speed rail—that changes the dynamics—and to the UK’s fiscal situation in order to ensure that we can go ahead with the programme.

[Stewart Hosie (Dundee East) (SNP)]

I welcome both the statement and having had early sight of it. I agree with the Secretary of State that the purchase of the locomotives will represent a multi-billion pound investment that, as he said, will underpin the provision of inter-city services. May I ask him whether the decision is for bi-mode hybrid trains or for a mixed fleet of diesel and electric trains, and whether sufficient numbers will be bought on time to guarantee the continuity and frequency of direct services from London on the east coast main line north of Edinburgh, through Fife, Dundee, Angus and Aberdeen?

[Mr Hammond]

It is not about diesels. There will be no diesel traction locomotives in the mix; there will be bi-mode electric-diesel trains and all-electric trains. The services to Aberdeen and Inverness will be provided by the bi-mode trains, running straight off the wires at Edinburgh and on to the existing routes, so that service will be protected.

[Mr Wayne David (Caerphilly) (Lab)]

In the spirit of St David’s day, I respectfully remind the Secretary of State that St David probably lived in west Wales. Has he made any assessment of the extent to which west Wales and Swansea will lose out from his partial electrification of the south Wales line?

[Mr Hammond]

Many people coming from England will access west Wales through Cardiff, and journey times to Cardiff are being reduced. Everybody would like a high-speed railway running right to their front door, but as we—[Interruption.] Okay, to the next street. As we progressively modernise our infrastructure with electrification and new train services, the impact will be felt by all locations. Even those locations not directly benefiting from the new, faster services will benefit from the savings in time, and I am sure that the hon. Gentleman’s constituents in west Wales will benefit significantly from today’s announcement.

[Neil Carmichael (Stroud) (Con)]

In congratulating the Secretary of State on a first-class example of investment in infrastructure that, in the context of protecting the environment, will bring jobs and further growth, may I remind him that, as my hon. Friend the Member for Cheltenham (Martin Horwood) said, it also strengthens the case for taking action to continue doubling the line from Swindon up to Kemble and Stroud?

[Mr Hammond]

I am well aware of the vigorous campaign to redouble the Kemble to Swindon link, and I know that the case will continue to be made for it as a major investment programme, and also for its possible inclusion in Network Rail’s next control period.

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

Following the delivery of the IEP, will the Secretary of State tell the House how many ageing InterCity 125s will still be on the network and for how long?

[Mr Hammond]

Only a small number of diesel 125s will remain on the network, and they will be serving the route down to Penzance in Cornwall. All the other 125s will be replaced by bi-mode trains under today’s proposal. I cannot say for how long those diesel 125s will remain on the network. There are no specific proposals to replace them at the moment, but I would remind the hon. Gentleman that the intercity express programme was always conceived as a commitment to a firm fleet of trains as the first phase, with options on further trains for future phases. It will therefore be for my successors at some point in the future to consider whether the remaining InterCity 125s should in due course be replaced by bi-mode IEPs.

[James Wharton (Stockton South) (Con)]

It is a matter for hon. Members whether they see their glasses as half empty or half full, but I am pleased to see the Government busily topping glasses up. As a representative of a north-east constituency, I am also pleased to say that last week we had the excellent news that Teesside Cast Products was being sold to SSI—Sahaviriya Steel Industries—and now we have today’s announcement from the Government. Does my right hon. Friend agree that this is a vote of confidence—not just by the private sector, but by the Government—in the skills and abilities of those working in manufacturing right across the north-east?

[Mr Hammond]

I absolutely agree with my hon. Friend: it is a vote of confidence in UK manufacturing. This Government are committed to rebalancing the economy, reviving manufacturing and reasserting the value of Britain’s manufacturing skills base, and both announcements play to that theme.

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

Let me bring the Secretary of State to the question of the midland main line—the forgotten line in this country—and ask him about the ageing high-speed trains, as my hon. Friend the Member for Luton South (Gavin Shuker) has just done. Those trains were second-hand when they were introduced on the line. Can he give a commitment that we will actually see bi-mode trains introduced on the midland main line? We have the immediate advantage of being able to use the electric line up to Bedford, allowing electrification of the rest of the line progressively and incrementally in the future.

[Mr Hammond]

The announcement today does not include provision for the midland main line. The hon. Gentleman mentioned bi-mode trains, and I am sure that he has also been lobbying for the electrification of the line, as have many other midlands Members. The debate about the line’s future also has to take account of the implications of High Speed 2, however. Once the High Speed 2 consultation, which began yesterday, has been completed and the Government have announced their definitive plans later this year, it will be much easier to plan for the long-term future of the midland main line.

[Karl MᶜCartney (Lincoln) (Con)]

This might not be quite as headline-grabbing as my right hon. Friend’s statement today, but he will be aware that, on 22 May this year, my constituents will see the reintroduction of a direct link to London. However, this will be only a single daily service—once up and down. Does he think that the old diesel stock whose replacement he has announced today could be put to good use in increasing the level of service to and from my constituency?

[Mr Hammond]

My hon. Friend is certainly right to say that one of the benefits of any announcement of new rolling stock is that it creates a larger pool of retired rolling stock and thus creates greater opportunities for train operators to acquire rolling stock leases at sensible prices. This helps to change the dynamics of the rolling stock market for the benefit of passengers and train operators.

[Paul Flynn (Newport West) (Lab)]

A word of croeso for the report, but my constituents are still greatly irritated by the fact that the Ebbw Vale to Cardiff line, which was reopened by the previous Government and is hugely successful, passes through the city of Newport but does not stop at the main station there. This affects many passengers who normally commute to Newport and whose access to the shopping centre there is now being denied. When can the appropriate link be put in place?

[Mr Hammond]

I am looking at my map, and, as the Minister of State, Department for Transport, my right hon. Friend the Member for Chipping Barnet (Mrs Villiers) reminds me, it is a matter for the Welsh Assembly Government to specify services on the Wales and west franchise.

[Mr Edward Timpson (Crewe and Nantwich) (Con)]

Will my right hon. Friend ensure that, should the preferred consortium for the IEP contract be unable to deliver all that is has offered, other bidders in the procurement process, including Bombardier Transportation, which has a site in my constituency, will be given due and proper consideration in any future procurement that might result from such a situation? Will he also ensure that its strong, advanced technical expertise is taken into account?

[Mr Hammond]

My hon. Friend makes a plea for Bombardier, which has a site in his constituency. Bombardier is involved in programmes for the delivery of other trains in the United Kingdom, and I think that it has a very bright future in the UK train market. The IEP project is a train availability contract to supply trains, ready for use and fully maintained. Hitachi or the Agility consortium will therefore be entering into an obligation to deliver specified numbers of trains ready and available for use in accordance with that contract, and it will be a matter for them to ensure that those trains are made available.

[Stephen Williams (Bristol West) (LD)]

This statement will be warmly welcomed in Bristol. As an émigré valleys boy, may I also point out that it will be welcomed in my home village of Abercynon, where the world’s first railway journey ended in 1804? The Secretary of State mentioned that the line from Bristol Temple Meads to Bristol Parkway was to be included in the electrification plans. Will that open the window for looking at the business case for electrifying the Severn Beach line, which the Rail Minister will be visiting with me on Friday?

[Mr Hammond]

I always learn something in these situations. I thought that the world’s first railway journey started somewhere up near Darlington, so if it ended in the Welsh valleys, it was doing extremely well. My right hon. Friend the Rail Minister will be happy to discuss this matter further with my hon. Friend. I know that she has already discussed the proposal with him and is looking at the business case for it with a view to its inclusion in future programmes.

[Mr Philip Hollobone (Kettering) (Con)]

May I press the case for the midland main line and encourage the Secretary of State to look at the introduction of upgraded, bi-mode inter-city trains on that line, not least because that might well facilitate the reintroduction of an inter-city service between Kettering and London, which was taken away when it was effectively downgraded to an outer suburban service?

[Mr Hammond]

I can only say to my hon. Friend what I said to the hon. Member for Sheffield South East (Mr Betts)—that the future use of the midland main line is bound to change if the high-speed rail network proposal goes ahead. By the end of this year—once the high-speed network is to be built, if that is the decision taken, following the consultation—we will be in a much better position to talk about the future plans for the midland main line and, indeed, for the east coast and west coast main lines.

High-Speed Rail

Lord Hammond of Runnymede Excerpts

Monday 28th February 2011 Written Statements

[The Secretary of State for Transport (Mr Philip Hammond)]

Today, I am launching the consultation on the Government’s proposals for a national high-speed rail network. “High Speed Rail: Investing in Britain’s Future” sets out the Government’s case for this network, the details of the Government’s strategy, and the proposed route for an initial phase from London to the west midlands. It will be one of the most extensive national consultations ever undertaken.

I believe that a national high-speed rail network from London to Birmingham, with onward legs to Leeds and Manchester, could transform Britain’s competitiveness as profoundly as the coming of the railways in the 19th century. It would reshape Britain’s economic geography, helping bridge the north-south divide though massive improvements in journey times and better connections between cities—slashing almost an hour off the trip from London to Manchester.

But the proposed high-speed rail network would do more. It would address Britain’s future transport capacity challenge—providing a huge uplift in long-distance capacity and relieving pressure on overstretched conventional lines. It would bring around £44 billion of net monetised benefits and support the creation of thousands of new jobs, as well as delivering unquantifiable strategic benefits. And it would help us to build a sustainable economy—by encouraging millions of people out of cars and off planes onto trains. Our competitors already recognise the huge benefits of high-speed rail and are pressing ahead with ambitious plans. Britain cannot afford to be left behind.

The Government’s support for high-speed rail was set out clearly in their programme for government, published in May last year. Since then, we have built upon the work already done by HS2 Ltd to consider the case for high-speed rail in the UK. Last October’s spending review settlement reaffirmed our support and provided over £750 million to fund the development of our national network proposals over the next four years.

Since then, the Government have received additional advice from HS2 Ltd on options for a national high-speed rail network and on direct links to Heathrow and the High Speed 1 (HS l) line to the channel tunnel.

The Government understand the concerns of those living near the proposed route. Following a series of visits I made along the proposed London-west midlands line, we have altered around half the original route—significantly reducing the potential local environmental impacts.

In the Chilterns area of outstanding natural beauty, all but 1.2 miles would be in tunnel, cutting, or close to the A413 road corridor. Since HS2 Ltd’s original report to Government was published in March 2010, the number of properties where high noise levels would be expected to be experienced has fallen from 350 to around 10.

In December 2010, I set out our proposed high-speed rail strategy, our preferred route and our approach to delivering a wider high-speed network.

However, we recognise that decisions should not be taken on a major infrastructure project of this scale until all those with an interest have had their say. So this consultation—which will run until 29 July—seeks views on: the case for high-speed rail; our strategy for a national high-speed network; the proposed route for an initial line from London to the West Midlands; and our options for providing assistance to those who are detrimentally affected by any new line. Responses can be submitted through the HS2 consultation website, or sent to a freepost address.

Copies of the consultation document have been placed in the Library of the House and are available on the DFT website. I am also publishing a number of more detailed supporting documents, including a detailed economic case, a full appraisal of sustainability and a route engineering report.

My Department will be conducting a series of regional seminars to inform the strategic debate, together with a series of roadshows along the line of the proposed London-west midlands route. These will give people the chance to discuss our plans and the specific local impacts and mitigation proposals with the engineers and other specialists working on the project.

This is a once-in-a-generation infrastructure investment that would have a transformational effect on Britain’s economy. Civic leaders of all political persuasions and business leaders from all parts of the United Kingdom support it. I urge all hon. Members with an interest to encourage their constituents to participate in the consultation. I will announce the outcome of this consultation process and the Government’s decisions on their strategy for high-speed rail before the end of 2011.

Crossrail (Woolwich Station)

Lord Hammond of Runnymede Excerpts

Wednesday 16th February 2011 Written Statements

[The Secretary of State for Transport (Mr Philip Hammond)]

I am pleased to inform the House today of a positive conclusion to discussions with Berkeley Homes on the funding of Woolwich station box.

In 2007, an initial agreement was reached between Crossrail Ltd, the Department for Transport, Transport for London and Berkeley Homes. This agreement stated that Berkeley Homes would build the basic box structure of a station at Woolwich and subsequently construct their own extensive mixed-use development above it. This would be done at Berkeley Homes’ cost and risk, to the specification laid down by Crossrail Ltd, in a way that ensured that the Woolwich station box did not add to the current cost of Crossrail. This agreement was outlined to Parliament by the then Secretary of State for Transport in March 2007.

The Department for Transport, Crossrail Limited, Transport for London, and Berkeley Homes, have in recent months been working urgently to turn this initial agreement into a final, legally binding, agreement.

I am therefore pleased to inform the House today that a final agreement has now been reached by all parties. This means that engineering work on Woolwich station box can now proceed and the benefit of Crossrail investment can be secured for the residents of Woolwich.

In due course, fit-out of the Woolwich station box would be required to bring it to operational status. The Government are clear that, in line with the 2007 agreement, no additional public sector contribution can be made available to fund the fit-out of the station box. Instead, the fit-out is conditional on receiving sufficient funding contributions from developers and businesses operating in the area. Berkeley Homes has an obligation to enter into discussions with Department for Transport, Transport for London, Crossrail Ltd and Greenwich council, in order to provide for the subsequent fitting-out of the station box. All parties, including Berkeley Homes, have made clear that they understand and support this position.

I shall update the House as and when progress is made in relation to the private sector funding of the station fit-out.

Departmental Expenditure Limit (2010-11)

Lord Hammond of Runnymede Excerpts

Tuesday 15th February 2011 Written Statements

[The Secretary of State for Transport (Mr Philip Hammond)]

Subject to parliamentary approval, the Department for Transport departmental expenditure limit (DEL) for 2010-11 will be decreased by £792,000 from £12,730,039,000 to £12,729,247,000.

Within the DEL change, the impact on resources and capital, are as set out in the following table:

Search and Rescue Helicopter Procurement (Correction to Written Ministerial Statement)*

Lord Hammond of Runnymede Excerpts

Thursday 10th February 2011 Written Statements

[The Secretary of State for Transport (Mr Philip Hammond)]

On 16 December I and my right hon. Friend the Secretary of State for Defence announced that information had come to light regarding the preferred bid in the search and rescue helicopter competition which required clarification.

In mid-December, the preferred bidder in the SAR-H competition, Soteria, voluntarily came forward to inform the Government of irregularities regarding the conduct of their bid team which had only then recently come to light. The irregularities included access by one of the consortium members, CHC Helicopter, to commercially sensitive information regarding the joint MOD/DFT project team’s evaluations of industry bids and evidence that a former member of that project team had assisted the consortium in its bid preparation, contrary to explicit assurances given to the project team.

Since December, our two Departments have been working with Soteria to understand better the situation and its implications for the procurement process. In addition, the Ministry of Defence police are investigating how the commercially sensitive information came to be in the possession of the bidder. It would be inappropriate to comment further on the details of the investigation until it has finished.

However, even without the outcome of that investigation, the Government have sufficient information to enable them to conclude that the irregularities that have been identified were such that that it would not be appropriate to proceed with either the preferred bid or with the current procurement process.

The Department for Transport and the Ministry of Defence will now consider the potential procurement options to meet future requirements for search and rescue helicopters in the United Kingdom, including options to maintain continuity of search and rescue helicopter cover until new longer-term arrangements can be put in place.

We will make a further announcement once a way forward has been agreed.

*(Official Report, 8 February 2011; Vol. 523, c. 7WS-8WS)

Search and Rescue Helicopter Procurement

Lord Hammond of Runnymede Excerpts

Tuesday 8th February 2011 Written Statements

[The Secretary of State for Transport (Mr Philip Hammond)]

On 16 December I and my right hon. Friend the Secretary of State for Defence announced that information had come to light regarding the preferred bid in the search and rescue helicopter competition which required clarification.

In mid-December, the preferred bidder in the SAR-H competition, Soteria, voluntarily came forward to inform the Government of irregularities regarding the conduct of their bid team which had only then recently come to light. The irregularities included access by one of the consortium members, CHC Helicopter, to commercially sensitive information regarding the joint MOD/DFT project team’s evaluations of industry bids and evidence that a former member of that project team had assisted the consortium in its bid preparation, contrary to explicit assurances given to the project team.

Since December, our two Departments have been working with Soteria to understand better the situation and its implications for the procurement process. In addition, the Ministry of Defence police are investigating how the commercially sensitive information came to be in the possession of the bidder. It would be inappropriate to comment further on the details of the investigation until it has finished.

However, even without the outcome of that investigation, the Government have sufficient information to enable them to conclude that the irregularities that have been identified were such that it would not be appropriate to proceed with either the preferred bid or with the current procurement process.

Local Major Transport Scheme

Lord Hammond of Runnymede Excerpts

Friday 4th February 2011 Written Statements

[The Secretary of State for Transport (Mr Philip Hammond)]

On 26 October, following the announcement of the conclusions of the spending review, I made a statement to the House outlining our plans for investing over £1.5 billion over the next four years on major capital transport schemes promoted by local authorities. I also set out a process for deciding which schemes would receive funding and published details in a document entitled “Investment in Local Major Transport Schemes”. I am today announcing the first set of decisions in line with the process as set out.

First, we announced in October a pool of 10 local authority schemes with very high value for money or large local contributions that we wished to support. However we challenged the local authority promoters to reduce the cost to the Exchequer and to submit revised funding bids.

I am pleased to say that through this process we have saved £45.5 million on these schemes—14% of the previously approved sums and I am pleased to confirm funding for the following schemes:

Leeds Station Southern Access: Improving pedestrian access to Leeds station (£12.4 million DFT contribution towards a total cost of £ 14.4 million)

Midland Metro Extension: Extending Midland metro tram line through Birmingham city centre (£75.4 million DFT contribution towards a total cost of £ 129.2 million)

Mansfield Public Transport Interchange: A new bus station and associated transport improvements in Mansfield (£7.2 million DFT contribution towards a total cost of £8.9 million)

Thornton to Switch Island Link: A new single carriageway road which will take traffic away from communities in Sefton (£14.5 million DFT contribution towards a total cost of £18.6 million)

Ipswich Fit for the 21st Century: An integrated package of sustainable transport improvements in Ipswich (£18.3 million DFT contribution towards a total cost of £21.5 million)

East of Exeter: Improvements to M5 J29, east of Exeter, providing access to new housing and employment areas (£10.4 million DFT contribution towards a total cost of £14.4 million)

Heysham to M6 Link Road: A bypass to the north of Lancaster, connecting Heysham to the M6 (£110.9 million DFT contribution towards a total cost of £123.3 million)

A57 Ml to Todwick Crossroads: Improvements on the A57 east of Ml J31, near Todwick (£11.8 million DFT contribution towards a total cost of £14.7 million)

Taunton Northern Inner Distributor Road: A new road in Taunton to provide additional cross-town capacity and access to areas of brownfield land (£15.2 million DFT contribution towards a total cost of £21.7 million)



These schemes will now be able to progress towards construction subject to securing any remaining necessary planning and statutory approvals and subject to confirmation of value for money where material changes have been proposed.

For the remaining scheme in the supported pool, the Mersey Gateway bridge, we are carefully considering a funding proposal from the promoters, Halton borough council. As this is the largest scheme with the most complex funding proposal of any scheme in the supported pool, we are not able to announce final funding arrangements at this point but will do so as soon as possible.

I also announced in October a development pool of 22 schemes on which funding decisions would be made by the end of 2011, and a pre-qualification pool of 34 schemes on which we would make an earlier decision on which should join the development pool.

I can today announce the promotion to the development pool of 23 schemes from the pre-qualification pool, making an expanded development pool of 45 schemes, based on their potential to offer value for money, their ability and willingness to offer savings to the DFT and, in the case of five structural maintenance schemes, the potential importance of the work to the integrity of the existing road network. The local authority promoters of these 23 schemes have indicated a potential to reduce the call on DFT funds that would amount to an overall saving of 42% on the total of the previously requested sums. I am encouraged by this and I look forward to working with the promoters of these and the existing development pool schemes to try to achieve further savings when the promoters of all schemes in the pool submit their best and final funding bids by September 2011.

As we set out in October, we do not expect that all schemes in the development pool will be funded. We will scrutinise the business case for each scheme very carefully and challenge promoters to demonstrate high value for money as well as significant savings on cost. We will also look at a range of other criteria, including deliverability and strategic fit, and will seek the views of interested parties including, where appropriate, local enterprise partnerships. The process remains competitive and those schemes that do not reach an acceptable standard will not be funded.

In respect of the schemes from the pre-qualification pool not selected for the development pool, promoters will need to consider their options. Beyond this spending review period my intention remains that we should move to a more devolved funding framework for major schemes with local enterprise partnerships and others. I will develop this framework further during 2011.

It may be that for some of these schemes there remains a reasonable prospect of funding through this route or with alternative funding sources. But there also needs to be realism. I would urge promoters of the non-selected schemes to consider, in consultation with the business community and local residents, whether further investment in the development of these schemes would be in the best interests of local council tax payers.

This Government are committed to transparency in decision making. I have placed on the DFT website a written document, as an update to “Investment in Local Major Transport Schemes”, which sets out the details of these scheme approval decisions and explains the rationale on which they have been based. The document also includes the benefit-to-cost ratios and net present values, as estimated in the spending review, of supported pool and original development pool schemes. I will also place on the DFT website the best and final funding bids and expressions of interest that have been submitted by the local authority promoters.

Oral Answers to Questions

Lord Hammond of Runnymede Excerpts

Thursday 27th January 2011 Commons Chamber

[Guy Opperman (Hexham) (Con)]

1. What steps he is taking to encourage the take-up of low-emission vehicles.

[The Secretary of State for Transport (Mr Philip Hammond)]

Eighty-four per cent. of journeys are undertaken by car. Tackling car-produced carbon by fostering and supporting the decarbonisation of motoring is therefore one of the Government’s key transport priorities. The spending review announced provision of more than £400 million for measures to promote the uptake of ultra-low carbon vehicle technologies. Those include support for consumer incentives, development of recharging infrastructure and a programme of research and development.

[Guy Opperman]

My local pub, the Battlesteads inn, which is award winning and excellent, has an electric car-charging point. It is one of the few in Northumberland. The problem is that the ability to recharge is dependent on the north-east’s sole recharging point. When will the system be made nationwide?

[Mr Hammond]

As my hon. Friend knows, the north-east is one of the areas that has been selected for support in the plugged-in places pilot, so there will be a roll-out of further charging infrastructure in the north-east. The Government are currently considering the options for a national roll-out of charging infrastructure and how we mandate that. We will publish our decisions in due course.

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

Is the Secretary of State aware of two interesting companies in my constituency? First, ITM Power produces and develops hydrogen-powered cars, with the ability to produce hydrogen in domestic units at home. Secondly, Magnatec attaches electric motors to diesel-powered vehicles, increasing efficiency by 30%. That system has been running on buses in Denver for more than 10 years, but British buses do not seem interested in taking it up. What steps is the Secretary of State taking with the Department to encourage those firms? Would he like to visit the constituency?

[Mr Hammond]

In fact, yesterday, I met a firm developing innovative battery technology in Aberdeen. We are always pleased to talk to companies that are developing low-emission vehicle technology in the UK. We have deliberately made the incentives technology-neutral so that people developing new and innovative systems can get the benefit of them.

[Simon Wright (Norwich South) (LD)]

One of the quickest and cheapest ways in which to reduce vehicle emissions is through more economical driving habits, but I understand that the take-up by businesses of smarter driving training courses has been disappointing. Will the Secretary of State explore the strategies that are open to the Department to increase take-up of those courses?

[Mr Hammond]

The Under-Secretary of State for Transport, my hon. Friend the Member for Lewes (Norman Baker) is looking precisely at how to increase take-up of the smarter driving training courses.

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

As the Secretary of State knows, the Department turned down a joint private and public consortium bid, including Cardiff and Bristol councils and the Energy Saving Trust, for a network of electric car-charging points between both cities on the M4. Will he explain to the people of south Wales why he turned down that bid?

[Mr Hammond]

The number of bids exceeded the available resources for the second wave of plugged-in places pilot schemes. All the bids were evaluated, and those that represented the greatest value for money were allowed to proceed. The promoters of the unsuccessful bids have been debriefed by the team in the Department, so they will have a detailed understanding of why their bid, on this occasion, failed. I hope that they will be encouraged to resubmit a bid in the next wave.

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

2. What plans he has for reform of the rail industry; and if he will make a statement.

[Harriett Baldwin (West Worcestershire) (Con)]

8. What plans he has for reform of the rail industry; and if he will make a statement.

[The Secretary of State for Transport (Mr Philip Hammond)]

Sir Roy McNulty’s rail value for money study has identified areas where significant efficiencies can be achieved. It is clear that the most pressing need is to align incentives across the industry to ensure closer working between Network Rail and the train operating companies. Our franchise reform programme is a key strand in the strategy. Those reforms, together with Sir Roy’s final recommendations, will form the basis of a long-term strategy for the industry. We are committed to publishing those proposals by November 2011.

[Mr Buckland]

Peak-time and season-ticket commuters from Swindon to London on the main line have had to face significant fare increases this month. Will the Government’s new rail franchising reform programme put special emphasis on the need for greater capacity and fairer rail fares?

[Mr Hammond]

We are committed to fair rail fares. Unfortunately, to support the rail investment programme, we have had to project faster-than-inflation increases in fares for the next three years. However, let us be clear: we have to get the cost of our railway down so that the burden on taxpayers and fare payers can be alleviated in future.

[Harriett Baldwin]

It takes 45 minutes longer to travel from London to Worcestershire along the Cotswold line now than it did in 1908. Will the Secretary of State agree to meet me and other representatives of the Cotswold line organisations to see how reform of the rail industry could help improve the timing and frequency of that service?

[Mr Hammond]

I understand my hon. Friend’s concern. Of course, there are far more stops and services than there were in 1908, but I am always delighted to meet her and other colleagues and would be happy to do so on this occasion.

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

How will the Secretary of State secure better co-ordination, focusing on the interests of passengers rather than for ever dealing with the consequences of fragmentation?

[Mr Hammond]

The hon. Lady is hinting at the fact that, at the moment, far too much time and energy in the rail industry is spent on allocating blame for things that have happened rather than on working out how to prevent them from happening in future. We believe that aligning the financial interests of the train operators and the infrastructure operators, so that they both have a stake in positive outcomes for passengers, is the way forward. We will await Sir Roy McNulty’s final recommendations and set out our proposals for the reform of the industry on that basis.

[Rachel Reeves (Leeds West) (Lab)]

In west Yorkshire, rail fares are set to go up by the retail prices index plus 5% from next year, which is the biggest increase in the country and 2% higher than in other areas. What will the Secretary of State do to avert those crippling hikes for people in Leeds and the rest of the region?

[Mr Hammond]

I cannot avoid the increases in prices to which the hon. Lady refers. They are partly driven by specific increases in rolling stock to alleviate overcrowding in the area. In the medium term, as I said in answer to the previous question, we must drive efficiency in the rail industry, and ensure that the cost base of our railway becomes comparable with those of other European countries, so that the upward pressure on fares can be alleviated.

[Martin Horwood (Cheltenham) (LD)]

I accept what the Secretary of State has said about the cost of the rail network, but does he nevertheless agree that the quality of passenger experience, which goes far beyond mere punctuality, should play a much greater part in the award of future railway franchises, and in their retention by train operating companies?

[Mr Hammond]

My right hon. Friend the Minister of State has published a consultation on franchising reform, in which she referred specifically to considering passenger satisfaction as one of the metrics. My hon. Friend will no doubt have been as delighted as I was to see the Passenger Focus survey this morning which shows that 84% of rail passengers are satisfied with the service that they receive on the railway.

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

I welcome the right hon. Gentleman’s decision to continue the rail industry review that was started by the Labour Government. When Sir Roy McNulty publishes his final report in April, the Opposition will support any sensible proposals that take cost out of the industry without reducing the quality of service for passengers. However, does the Transport Secretary agree with me—and with some Conservative Back Benchers, from what I heard in earlier exchanges—that as the cost to the Government of running the railways comes down, the cost to the public of travelling by train should come down as well?

[Mr Hammond]

I am grateful to the hon. Lady for her expression of support for Sir Roy McNulty’s review and I am happy to acknowledge that that process was set in train by my predecessor. I look forward to taking the review forward on a consensual basis. Of course, the objective of driving efficiency in the railway is to reduce the burden on both the taxpayer and the fare payer. I am glad that she recognises that the only realistic way to do that is to reduce the cost base.

[Maria Eagle]

In view of that, does the Secretary of State understand the anger felt by hard-pressed commuters up and down the country who are facing big fare hikes—record fare rises of over 30%—over the next three years, and often worse overcrowding on services that will not really improve over that period? The initial findings of Sir Roy’s review suggested that savings of £1 billion could be found without cutting services, so will the Secretary of State now commit to sharing the benefits of those savings with passengers, and rethink his plan to impose record fare rises?

[Mr Hammond]

Sir Roy McNulty’s suggestion that £1 billion a year could be found refers to 2017-18. It will take some time before we get to that level of achievement, but it must remain our aspiration. In the meantime, the hon. Lady has answered her own question. Overcrowding is a key issue, and if we are to address it we must continue to invest in additional rolling stock and infrastructure on our railways, as we have committed to do. I am afraid that means that the relief that passengers seek will not come in the next couple of years, although it will come.

[Mr John Baron (Basildon and Billericay) (Con)]

3. If he will consider the merits of authorising traffic signals to display only flashing amber aspects in the early hours of the morning to reduce journey times.

--- Later in debate ---

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

4. What assessment he has made of the effect of the outcome of the comprehensive spending review on road improvement schemes in east Yorkshire.

[The Secretary of State for Transport (Mr Philip Hammond)]

There were three road improvement schemes in east Yorkshire under consideration at the time the spending review was announced. Of those schemes, the Beverley integrated transport scheme has been classified as in the development pool and the A164 Humber bridge to Beverley improvement scheme has been classified as in the pre-qualification pool. Both are currently subject to the prioritisation process set out in the document that was made available to Members in this House on 26 October.

The Highways Agency scheme to improve the A63 Castle street in Hull has been identified as a scheme with a positive business case for potential construction in future spending review periods.

[Diana Johnson]

As the Secretary of State has said, in the October announcement the upgrade of the A63 was put back until at least 2015. Since then, we have had the announcement from Siemens that it will develop the green energy industry along the Humber. In light of that announcement, will the Secretary of State think again? The A63 upgrade would have a positive impact on the economic regeneration of east Yorkshire and local businesses are really pushing for it.

[Mr Hammond]

I am aware of the relevance of the A63, having sat in a traffic queue on it not so long ago. The Highways Agency budget for the current spending review period has been allocated to schemes that have been approved to proceed, so there will be no more funding available during the funding review period. However, that scheme is value for money and I expect it to go forward in a future spending review period.

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

5. What assessment he has made of the effects of the ending of the west London extension of the congestion charge zone.

--- Later in debate ---

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

10. When he plans to publish his proposals for the modernisation of Her Majesty’s coastguard.

[The Secretary of State for Transport (Mr Philip Hammond)]

The consultation on proposals to reconfigure coastguard maritime rescue co-ordination centres was launched on 16 December and will run until 24 March 2011. After that all responses received will be reviewed and analysed before we make a decision. At present there is no final timetable for the decision, as the time required for analysis will depend on the volume of responses received. In our view, it is more important to make the right decision than to make a quick decision.

[Gemma Doyle]

I have been contacted by several constituents who are concerned about the proposal to close Clyde maritime rescue co-ordination centre. They are worried that the loss of local knowledge will risk coastal safety in and around the waters of the Clyde. Will the Secretary of State give a commitment to listen carefully to those concerns about the closure of coastguard stations and, in particular, rethink the proposal to close Clyde MRCC?

[Mr Hammond]

Of course we will give careful consideration to all the representations made in the consultation. I should emphasise to hon. Members that we are talking about search and rescue co-ordination centres. They are not front-line delivery points; they are the centres that manage and co-ordinate the calls coming in, and task the front-line rescuers. The driver for the change is managing the work load and interlinking the centres across the country, so that they can best manage fluctuations in work load and provide a 24-hour competent service.

[Mr Adrian Sanders (Torbay) (LD)]

Have not the regional fire centre proposals, which were based on pretty much the same principles, been abandoned? Was not consideration given, before the consultation paper was published, to where this could end?

[Mr Hammond]

Indeed; I looked at precisely that point. The difference is that fire and rescue services are localised—there are different fire and rescue services around the country. Her Majesty’s Coastguard is a national service, operating as such, and the reconfiguration will provide nationally networked co-ordination centres that will deliver across the whole country.

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

Today’s Liverpool Echo calls into question the genuineness of the consultation on the coastguard service. If we take into account the scrapping of Nimrod, the ending of the emergency towing vessel contracts, the selling off of air-sea rescue, the prospective closure of coastguard stations and the sacking of coastguards, what assurance can the Secretary of State give to shipping, where there is real concern about the future of safety? Can he assure us that there will be no compromising of maritime safety?

[Mr Hammond]

It is a bit rich for the hon. Gentleman to talk about the selling off of search and rescue, when the search and rescue private finance initiative project was initiated by the Government in which he served and had been running for at least three years before the general election. On the specific point about the Liverpool coastguard co-ordination centre, Ministers looked at the proposals made by officials in the Department and judged that the decisions to be made between Belfast and Liverpool and between Stornoway and Shetland were so close that the consultation should go forward while making it clear that there was a judgment call to be made within each of those two pairs of stations. There was not a clear and definitive business case, which I think is what has given rise to the story in the Liverpool Echo to which the hon. Gentleman has referred.

[Mr Iain Wright (Hartlepool) (Lab)]

12. What plans he has for the future of bus services.

--- Later in debate ---

[Mark Lancaster (Milton Keynes North) (Con)]

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

[The Secretary of State for Transport (Mr Philip Hammond)]

Since I last answered questions, I have published details of our proposed route for high-speed rail, launched the local transport White Paper, including the bidding guidance for the £560 million local sustainable transport fund, set out our proposals for reforms to the rail franchising system, which will deliver better value for money for taxpayers and better service to passengers, and announced tough new measures to tackle uninsured driving.

[Mark Lancaster]

Investment in the west coast main line is most welcome but mainly benefits long-distance travellers, while short-distance travellers remain overcrowded. Is there any light at the end of the tunnel for Milton Keynes commuters?

[Mr Hammond]

There are two separate lights at the end of the tunnel—[Interruption.] Neither of them is a train coming the other way. First, as my right hon. Friend the Minister of State said earlier, 106 additional Pendolino carriages for the west coast main line have been ordered and will come into service in 2012. Secondly, as the proposed HS2 line, if approved, is built it will provide massive additional capacity on the London-west midlands route, and capacity will be freed up for new high-speed, longer-distance commuter services from places such as Milton Keynes to London.

[John Woodcock (Barrow and Furness) (Lab/Co-op)]

Ministers have spent weeks creating confusion over fuel prices. Will the Secretary of State say what he plans to do to help hard-pressed motorists? If he is so concerned now, will he say whether he thought it was fair to impose a VAT hike on fuel just three weeks ago?

[Mr Hammond]

The hon. Gentleman is a spokesman for a Government who proposed the fuel price increases that are now coming into effect, and who were planning to put VAT up, as we discovered from leaked documents before the general election. I am pleased to say that it is not my business to do anything about this, as it is a matter for the Chancellor of the Exchequer.

[David Morris (Morecambe and Lunesdale) (Con)]

T3. Some 84% of rail users are currently satisfied with their service. Does my right hon. Friend agree that that is welcome news, and will she elaborate on that statement?

--- Later in debate ---

[Mr Dave Watts (St Helens North) (Lab)]

T2. Has the Department carried out a study of the likely effects of massive rail and bus fare increases on the number of people who are able to use such services in the future?

[Mr Hammond]

The Department did, of course, carry out the usual equalities impact study that is required, before making the proposals. There is a hidden premise behind the hon. Gentleman’s question. Nobody increased rail fares ahead of inflation happily or gladly. The decision whether to protect the planned investment in reducing overcrowding by delivering additional rolling stock, or to scrap that programme, was a difficult one. We decided to protect investment for the medium and long term, and unfortunately that means three years of further above-inflation rail fare increases.

[Richard Harrington (Watford) (Con)]

T4. Many of my constituents and those of other Members were severely disrupted by the effects of the weather on airports in London and elsewhere. Does the Minister agree that the Civil Aviation Authority needs more powers to assess the situation and hold airport operators to account?

[Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

The marine environment is dangerous, and we are fortunate to have Stornoway coastguard, which is based in my constituency. However, I have been told that the Government’s reorganisation proposals are not accompanied by any proper risk assessment. Is that true?

[Mr Hammond]

Of course the proposals have been risk-assessed. They have been around for more than two years, since before the general election, and there is a long slow-burning fuse behind them. They are now out for consultation, and the hon. Gentleman can and, I am sure, will make forcefully the case for retaining the station in Stornoway.

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

T5. Can the Minister give us a likely date for the decision on electrification of the Great Western line to Swindon and beyond?

[Andrew Miller (Ellesmere Port and Neston) (Lab)]

You will recall, Mr Speaker, the procedural exchange that you and I had earlier this week about the failure of the Department for Transport to answer questions about river and port pilotage. The first question has now been answered inaccurately; as for the second, the Department refuses to publish the advice that it has received. This is a fundamental matter of safety. Will the Secretary of State examine it personally and review the decision to refuse to publish the information, in order to give us confidence that our pilots are properly trained?

[Mr Hammond]

I am not aware of the written answer to which the hon. Gentleman refers, but I will look it up when I return to the Department, and I will write to him.

[Mark Pawsey (Rugby) (Con)]

T6. In my constituency, an average of 27 people a year are killed or seriously injured in crashes involving young people. That includes a tragic accident over the Christmas period involving a friend of my son. Graduated driver licensing, enabling a new driver to proceed to a full licence over a period, has been shown in many countries to reduce the number of casualties in that vulnerable group. What discussions has the Secretary of State had about introducing such an approach to improving road safety in this country?

[Mr Hammond]

My hon. Friend will know that the United Kingdom actually has an enviable record on road safety. Many of the countries that operate graduated licensing suffer worse safety records than the UK. Our policy is to avoid additional regulation whenever possible, and we would be very concerned about imposing any regulation that reduced the mobility of young people who had acquired driving licences, because of the impact that it would have on their participation in the labour market and in further and higher education.

[Dame Anne Begg (Aberdeen South) (Lab)]

Apropos the disruption at Heathrow, the temperature has dropped again today. Ministers need not go abroad to find examples of the way in which airports can cope with snow. Aberdeen airport, which is also owned by BAA, managed to cope perfectly well with 2 feet of snow, while Heathrow was closed for nearly two weeks because of 2 inches of snow. What guarantee will the Government give passengers—not just those like me, but the many people who travel through Heathrow, which is one of the major hubs—that such disruption will not occur again?

--- Later in debate ---

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

I heard what the Minister said about uninsured drivers, but what thought has he given to requiring drivers to put details of their insurance on the car windscreen, which works well in a number of other countries?

[Mr Hammond]

The hon. Gentleman may know that the Department has introduced a programme of rolling monitoring of insurance, where anyone whose vehicle is uninsured now has to make what is, in effect, a statutory off-road notice declaration. The police will have access to the database and will be able to monitor, in real time, whether vehicles are insured or uninsured. That will give rise to a much more effective level of enforcement.

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

T8. I know that the Minister is aware that Fleetwood has a railway line that has been redundant since the 1960s but which has most of its infrastructure intact. What hope can she offer my constituents that there may be a chance of reopening the line and providing much-needed regeneration to the town?

[Grahame M. Morris (Easington) (Lab)]

What assessment has been made of increasing fuel prices and the rising costs of motoring in rural areas, particularly for lower-income households?

[Mr Hammond]

No specific assessment has been made by my Department, but I can tell the hon. Gentleman that independent assessments suggest that between 1997 and 2010 the real cost of motoring has declined by 7%.

The Minister for Women and Equalities was asked—

Winter Resilience Review

Lord Hammond of Runnymede Excerpts

Tuesday 21st December 2010 Written Statements

[The Secretary of State for Transport (Mr Philip Hammond)]

As I explained to the House yesterday, in light of the early and severe onset of winter last month I asked David Quarmby CBE to follow up his earlier review of winter resilience with an urgent audit of how well highway authorities and transport operators in England have coped with the cold weather between 24 November and 9 December 2010. David’s report to me is published today (transportwinterresilience.independent. gov.uk) and copies have been placed in the Libraries of both Houses.

In the main, he has found that the country’s transport systems coped well with the early severe weather during that period. However, given the more recent extreme cold snap, and that forecasts predict snow into the new year, we welcome David’s recommendations on how we can further bolster our resilience. It is now vitally important that those to whom they are addressed take these recommendations forward without delay.

The audit emphasises the volatile nature of British weather, but notes the Met Office’s view that the three severe winters are genuinely independent events. However, as I explained to the House yesterday, I will be assessing advice from the Government’s chief scientific adviser, Professor Sir John Beddington, on the longer-term implications of the changing climate and the way in which they should influence our investment decisions across the sector in relation to winter resilience.

The report finds that local highway authorities generally coped well with the extreme and early winter conditions, but used a significant amount of their salt stocks in doing so. To assist with salt supply over the Christmas and new year holiday period when deliveries from the mines tend to become more infrequent, I am making available to highways authorities 30,000 tonnes from the national strategic salt supply which was established earlier in the year in response to Quarmby’s first review. I have also asked the Highways Agency to make arrangements for the import of further supplies of salt, up to an additional 250,000 tonnes, to strengthen further our resilience. This is expected to start arriving in January.

But we need to ensure that we make the best possible use of existing stocks, new mine production and imported supplies. As we cannot be sure how long the current severe weather will persist, or how often it will recur this winter, prudence requires that all highway authorities should critically examine their current levels of usage and look for economies to maximise the duration of existing stocks.

Varying spread rates between local highway authorities have been identified as a concern for David Quarmby. I have already asked the UK Roads Liaison Group and the National Winter Service Research Group to prepare additional straightforward guidance on spread rates based on all evidence available, so that all highway authorities can adopt the practice of the best.

The report also refers to the extraordinary events that occurred on the M25 at junction 3 on 30 November. Highways Agency officials have already briefed me on these events, and I look forward to a full report in due course analysing the incident and setting out the lessons that the agency have learnt.

The rail network has been particularly badly affected by the weather this year, perhaps in contrast to the two previous winters. Quarmby’s recommendations here are for the longer term; and I am asking the rail industry to formulate proposals on contingency timetables, real-time information and third rail alternatives. I will also ask them to conduct the recommended review of their operational performance.

Although the focus today is very much on aviation and the problems at Heathrow in particular, this was less of an issue during the period that this report covers and there are therefore no specific recommendations directed at the aviation sector. It is clear, however, that, as a separate piece of work, we will need to work with BAA and the airlines to understand exactly what went wrong at Heathrow over the weekend and why it has taken the airport so long to recover.

I would like to thank David Quarmby, who has delivered this audit report to a very challenging timetable. As with his previous reports, his analysis and recommendations are clear-sighted, and will help the transport sector to improve its resilience to winter weather.

Severe Winter Weather

Lord Hammond of Runnymede Excerpts

Monday 20th December 2010 Commons Chamber

[The Secretary of State for Transport (Mr Philip Hammond)]

With permission, I would like to make a statement on the continuing severe winter weather. We are facing exceptional conditions. It looks set to be the coldest December since 1910 with average temperatures 4°C to 5°C below the norm for December. Many areas have had record low temperatures, and snowfall has been the most widespread since 1981. The forecast is for continued severe cold and further snowfall through the coming week and over Christmas and the new year.

Transport services have suffered extensive disruption in the past few days, and there is a likelihood, I am afraid, of further disruption through this week. I recognise that this is particularly stressful just a few days ahead of the Christmas break, and I understand the frustration of those who are trying to get away or, indeed, trying to get home.

Transport services were also disrupted in the first spell of winter weather that came unusually early, at the end of November. That period tested the systems which, in some case, had performed so very poorly earlier this year. The then Government asked David Quarmby, chairman of the RAC Foundation and a former chairman of the Strategic Rail Authority, to conduct a review of last winter’s resilience. His initial report was issued in July and a final report was published in October. It made 28 recommendations, some of them directed at central Government, some at local government, and some at transport operators. Many of those recommendations have already been implemented, although some will necessarily take longer.

On 2 December I asked David Quarmby, in the light of the weather conditions that we were then experiencing, to conduct an audit of the implementation of his recommendations and to make any further observations that he felt necessary. This is an independent report and I understand that David Quarmby intends to publish it tomorrow.

One of the principal recommendations of the first Quarmby report concerned salt—levels of stocks that local authorities should hold, dosage rates for optimum use of stocks and the acquisition of a strategic stockpile by central Government. Local authorities went into this period with significantly better salt stocks than last winter and the Highways Agency, on the Government’s behalf, had purchased 300,000 tonnes of salt to form a strategic stockpile, of which over 150,000 tonnes is already at UK ports, with the remainder scheduled for delivery through December and early January.

Over the past few days, highway authorities across England have been focused on delivering their planned salting and snow clearance to keep their local strategic road networks open. Together they had ready some 1.25 million tonnes of salt at the start of the winter. As hon. Members would expect, salt usage has been significantly above the norm for the time of year and so my Department decided two weeks ago to procure, as a precautionary measure, up to an additional 250,000 tonnes of salt, to replenish the strategic stockpile as salt from it is released to local authorities. Last Friday the Department for Transport offered 30,000 tonnes from the strategic stockpile to local authorities to provide reassurance over the holiday period. That allocation has been taken up and will be delivered over the next few days.

The strategic road network inevitably suffered severe disruption in the wake of heavy snowfall this weekend, but recovered reasonably rapidly and, with isolated exceptions, has operated effectively since Saturday afternoon. Similarly, heavy snow and the formation of ice at very low temperatures caused some disruption on rail networks on Friday and Saturday, but the rail industry has pulled together to keep essential services running, using special timetables where necessary, and I am pleased to report that commuter services into main conurbations this morning are close to normal. Transport for London has successfully followed its winter weather plans and has been able to run a near-normal service across its network. However, issues with Eurostar are ongoing and have been well reported today, including the impacts of very severe weather in northern France.

Disruption due to weather conditions of this extremity is inevitable, and the measure of resilience is the networks’ speed of recovery from such events. On that measure, the strategic road network and the rail network have performed broadly satisfactorily, in view of the exceptional circumstances. The experience at airports, and at Heathrow in particular, has however been different. Conditions have been difficult throughout north-west Europe, with Frankfurt, Charles de Gaulle and Schiphol airports all struggling to cope at times. This afternoon, just before I came into the Chamber, it was being reported that Brussels airport will close until Wednesday because it has run out of de-icer. But, yesterday’s whole-day virtual closure at Heathrow, coupled with continued substantially reduced capacity, presents a very real challenge from which the system will struggle to recover quickly.

I spoke this morning to BAA, the airport operator, and to British Airways, its principal user. I am clear that BA made the right call on Saturday to cancel its flights in anticipation of the airport’s closure. Had it not done so, the scenes of the terminals on Saturday night that we witnessed on our TV screens could have been much worse.

Heathrow operates, at normal times, at some 98% of full capacity, so when there is disruption caused by snow or by the need repeatedly to close runways or taxiways for de-icing, capacity is inevitably lost and a backlog builds up. There is still a large amount of work to be done to restore Heathrow to full capacity, and further snow and severe icing is anticipated over the next few days.

The immediate focus at Heathrow must therefore be on maximising the number of flights with the available infrastructure, and in order to do that I agreed with BAA this morning to a relaxation of restrictions on night flights for the next four days. Operating hours will be extended until 1 am, and arrivals for repatriation flights will be allowed through the night. None the less, BAA advises that, with further severe weather forecast, Heathrow is likely to be operating at reduced capacity until Christmas.

Conditions in the terminals overnight on Saturday were very difficult, with some 2,000 passengers stranded. Once the airport has returned to normal operation, my officials will work with BAA to understand how that situation arose and what it plans to change to ensure that we do not experience a repeat. It is clear from my discussions this morning that some preliminary conclusions have already been drawn.

We recognise that the cost, both economic and social, of this level of disruption can be great. Winters such as this year’s and last have been rare in modern Britain, but we need to consider whether we are now seeing in our weather a step change that might justify investment in equipment and technologies to reduce the impact of severe weather. I will assess advice on that subject from the Government’s chief scientific adviser, Professor Sir John Beddington, and we will work with transport operators to examine the business case in each sector for increased investment in winter resilience where that makes sense—recognising always that spending more on winter preparedness inevitably means that there will be less to spend on other priorities.

This is not just about making sure that people can travel and goods can be delivered. Disrupted transport links, combined with cold weather, increasingly impact on other essential services. In particular, they threaten the vulnerable in our communities. To help those most in need to stay warm in the coldest parts of the country, the Government have so far this winter paid out some £355 million in cold weather payments, through an estimated 14.2 million payments to affected households. In addition. winter fuel payments for pensioners have been protected at the higher rate for this winter, with 12.9 million payments made to those older people who meet the qualifying conditions. We have also taken precautionary steps to ensure that the health services are well prepared, with local plans in place to deal with the extra demands that this type of weather brings.

Despite those steps, weather of this severity can cause unexpected problems for many people, including those who would not normally consider themselves vulnerable, but who might be in serious difficulty if, for example, their boiler breaks down or they cannot get to the local chemist to collect their medication. With support from the Government, the Local Government Association will therefore work closely with local authorities in England to ensure that appropriate arrangements are in place across the country. Individual local authorities will publicise information locally on how to access those advice services ahead of the Christmas holiday period.

Severe weather poses significant challenges to the energy supply industry. Difficult driving conditions have affected fuel oil and coal suppliers’ ability to make deliveries, particularly to more remote areas away from the strategic road network. That has resulted in delivery backlogs, which suppliers have been working hard to reduce in difficult circumstances. Distributors are doing all they can to prioritise deliveries to vulnerable customers and to people who are running short of fuel. Working with the Government, the Federation of Petroleum Suppliers has issued a code of practice to its members to help them prioritise orders to those most in need and to alert local authorities when they are aware of a risk of potentially vulnerable households running short of heating oil.

The severe weather has also led to a very high forecast of demand for gas, which is expected to be more than 26% above the normal for this time of year. As a result, the National Grid issued a gas-balancing alert yesterday to provide a signal to the market to bring on additional supplies and to reduce demand from large users on interruptible contracts. There is no reason to expect any disruption to domestic customers, or to commercial customers unless they have interruptible contracts. My right hon. Friend the Secretary of State for Energy and Climate Change has today issued a written statement that provides more information on that issue.

Nationally, we will continue to do whatever is necessary to support essential services and provide advice to businesses and householders on steps they can take to help themselves and others. So, for example, we have published a snow code to give common-sense advice to householders and businesses to help them clear snow and ice safely from pavements and public spaces without fear of legal action. As an emergency measure, we have relaxed the enforcement of EU drivers’ hours and working-time rules to mitigate the effect of the severe weather on critical parts of the supply chain that have been badly hit by the weather. We published guidance for local highway authorities on the range of actions that can be taken to ensure optimum use of salt stocks, and over the next few days we will publish updated technical advice based on the latest research findings, so that all authorities can adopt best practice. We have also confirmed to farmers that they can use red diesel in tractors and other equipment to help salt and clear snow from public roads during extreme weather.

We are not yet through this period of extreme weather. My priority at the moment remains working with the transport industries to allow us to return to normal as fast as the continued freezing temperatures this week permit. I will also be working with ministerial colleagues and officials from other Departments, with whom I have been in contact daily since Friday, to continue monitoring the situation, assessing the risk of further disruption and taking whatever action is needed. Those arrangements will continue for as long as necessary through the holiday period. I can assure the House that wherever Government action can help to ease the impact of severe weather or mitigate its effects, we will not hesitate to take such action. I commend this statement to the House.

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

I thank the right hon. Gentleman for updating the House. After a weekend of chaos across the country, during which there have been severe transport problems on our roads, railways and runways, families struggling to get together for Christmas are furious that they have spent hours stuck in their cars at stations or airport terminals. What has really frustrated people has been the total lack of information available. They understand that things will go wrong when we experience such severe weather and no one—not even me—is suggesting that the Government can, or ought to be able to, control the weather. However, the Government should be able to control how prepared we are for that weather, and they can co-ordinate information so that those travelling can make and alter their plans accordingly.

Right from the first hit of severe weather at the start of this month, the right hon. Gentleman and his Department have seemed woefully ill-prepared for winter, despite the fact that the report on winter resilience that we ordered in government has been sitting on his desk since July. The 17 recommendations in the interim report and the 11 recommendations in the final report have clearly not been put into action with the urgency that they demanded. At the last Transport questions, he said that those recommendations had been implemented, yet in his statement he said that some of them will necessarily take longer. Well, which is it?

The reality is that Transport Ministers were caught off guard by the arrival of winter early this year, and failed to keep the country moving at a time when so many people need to travel to be with their family and friends. I am afraid that some of the right hon. Gentleman’s words today still sound complacent. Why was only 100,000 tonnes of salt for the roads in place at the start of the month, when the report said that 250,000 tonnes was needed? Can he confirm which local authorities currently have salt stocks below the new benchmark of 12 days’ worth of salt? What conversations has he had about services to deal with the abandoned cars and jack-knifed vehicles that have caused much of the delay? What steps has he considered to manage traffic flows better—for example, by not letting people join a motorway such as the M5 when it is already blocked, so that they will end up sitting in their cars not going anywhere? He said in his statement that the strategic routes have operated effectively since Saturday afternoon or evening: tell that to the people who were stuck for 13 and a half hours on the M40 trying to travel towards London.

On our railways, why does the update report that the Secretary of State has received in the past few days contradict the claim that the rail industry has sufficient equipment? Why are essential measures such as anti-icing capability on trains and new hot fluid distribution on to tracks not going to be in place until February, according to the most recent update—a little bit too late?

Does the Secretary of State accept that the most frustrating thing for passengers is lack of information? Why is it, therefore, that the new unified national real-time passenger transport information system to allow passengers to find out where their trains actually are, not what the timetable says, will not be in place until 2014? He said that the railways had kept essential services running and that commuter services were running well and close to normal, but people were stuck at Peterborough and King’s Cross last night with very little information about when the east coast main line was going to get back to normal.

The chaos that we have seen at our major airports is not only unacceptable but risks damaging our international reputation. It is just not good enough to pass this off as a private sector problem, as the Secretary of State did earlier. Passengers stuck at Heathrow and Gatwick for days on end have every right to feel abandoned by this Government. Other countries have kept planes flying and airports open, yet here passengers have been left on planes for hours on end without food and drink, and others have been forced to sleep on terminal floors with no blankets and poor information. The winter resilience report found that those in the aviation sector

“anticipate and manage the effects of severe winter weather to a very high standard of resilience”.

That is surprising given what we have seen in the past few days. Will he examine whether there has been any complacency among those at our airports? He referred to some preliminary conclusions following his conversations today, but he has not told us what they are. It might be useful to know.

Is it not the case that the chaos that we have seen has as much to do with this Government’s values as their competence? The Prime Minister’s close ally, the hon. Member for Grantham and Stamford (Nick Boles), gave the game away this weekend when he said:

“I mean, bluntly, there comes a question in life…Do you believe planning works…or do you believe it can’t work? I believe it can’t work, David Cameron believes it can’t, Nick Clegg believes it can’t. Chaos therefore in our vocabulary is a good thing.”

The right hon. Gentleman has obviously volunteered his Department to pilot this new approach to government and become the official Department for Chaos. He is doing quite well, actually. No wonder he has been dubbed the “No Transport Secretary” this morning.

People want competence from Ministers. They want good-quality information when disruption happens. They want co-ordination of recovery and mitigation across the entire system. They want help when they need it; they do not want to be left to fend for themselves as though there were no such thing as society. Will the right hon. Gentleman now learn the lessons of the past month and finally get a grip on the transport chaos that threatens to see Christmas cancelled for families up and down the country?

[Mr Philip Hammond]

After a heavy dump of snow, we have had a heavy dump of political opportunism from the hon. Lady. She talks of chaos, but does she remember the chaos last year when the Government of whom she was a member ran out of salt and had to stop gritting the roads because they had not bought enough of the stuff? They had not prepared at all. I will take no lectures from her on preparedness. Local authorities, the Highways Agency, rail operators and Network Rail have all entered this winter better prepared than they were last winter.

The hon. Lady talked about Quarmby’s interim report and final report, and the implementation of his recommendations. Of course action on some of the recommendations has not been completed yet—it requires capital investment and the procurement of new equipment, such as de-icing equipment for trains in the south-east. The first of that equipment has been delivered and fitted, and is undergoing proving trials. As soon as the proving is complete, the remaining 20 units will be rolled out. She cannot sit here with no plan, no suggestion and nothing constructive to offer, simply lobbing rocks from the sidelines, and expect to be treated seriously. As for our delivery on Quarmby’s recommendations, I suggest that she wait to see his report on the audit that he has carried out. He is their man, he was appointed by their Government, and he is now auditing our response to his recommendations. She should wait and see what he has to say before making such ridiculous points.

We were not caught off guard by the onset of winter, but we were caught off guard by the severity of the weather, as was everybody in this country. The hon. Lady asked about the recommendation that a strategic stockpile of 250,000 tonnes of salt be built. The Highways Agency has purchased 300,000 tonnes of salt, 156,000 tonnes of which has been delivered. The remainder is scheduled to be delivered over the next three weeks. If one is building a strategic stockpile, there is no need to replenish local authority stocks throughout the length of the winter, nor for every last ounce of it to be sitting in place on 30 November.

The hon. Lady asked how many local authorities are below the 12 days’ resilience level recommended by Quarmby. That threshold was recommended for the beginning of winter. Of course, many local authorities that were operating at or close to the threshold are now considerably below the 12 days’ resilience level, although some local authorities have much more substantial stocks. If they wish, local authorities will be resupplied from the strategic reserve that we have built. In turn, the strategic reserve will be replenished from the salt that we are currently sourcing from locations across the world, including south America, the middle east, India and Australia.

The hon. Lady asked about vehicles joining motorways. The police have powers to prevent vehicles from entering a motorway, if they deem it appropriate to do so.

The hon. Lady also mentioned the situation at the airports, and I am happy to agree that what has happened at Heathrow airport is not acceptable. We have to work with the airport operators and the airlines to work out how to avoid such situations. I can give her further clarification on the early conclusions that have been shared with me by the airport operator. It recognises that it was a mistake to continue trying to operate the schedules that it was using on Saturday, and that it should have made a decision earlier to cut severely the number of flights departing and arriving, so that the airport would not be congested with aircraft when the snow came in. That is the kind of practical lesson learning that must be done. We will work with the airport operators to ensure that next time such lessons are learned and implemented.

Finally, the hon. Lady had the audacity to ask why the rail equipment that Quarmby recommended in his October report is not in place and operating. The answer is clear: Labour did not order it when it was in government. We have ordered it, but it does not appear by magic, simply by snapping your fingers; these things have a lead time and must be done properly. The equipment will be in place by the end of the winter, and it will make our railways operate more effectively.

[Sir Alan Beith (Berwick-upon-Tweed) (LD)]

Northumberland has had very heavy snowfall over a very long period, so I welcome the efforts being made to get domestic oil deliveries to remote homes, where people are getting really desperate. May I ask the Secretary of State to talk to his colleagues in the Department for Communities and Local Government? Local authorities such as Northumberland are having to spend heavily from their reserves to keep roads open, at just the time when that Department is saying that using reserves is the way to fund redundancies.

[Mr Hammond]

My understanding, which the Local Government Association confirms, is that all local authorities are saying that they are adequately funded to deal with the contingencies of the severe weather, and that funding constraint will not be a problem in responding to the situation this winter.

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

In this exceptional weather, can the Secretary of State assure us that he has adequate means of becoming aware of the emerging problems as well as the current ones? Will he explain the powers and influence that he is ready to use to alleviate the situation, whether by providing additional resources, improving co-ordination or ensuring a better flow of information?

--- Later in debate ---

[Mr Hammond]

We are operating a cross-departmental ministerial team approach, because we need to consider matters such as health, the protection of vulnerable people and energy supplies. There is also a huge role for local government in responding to a situation such as the current one. We are receiving four-hourly update reports on the situation, including Met Office forward forecasts, and over the past few days we have been convening daily to consider the current situation, the expectations for the next 24 hours and the actions that are needed. As I said in my statement, when there is something that the Government can do, bearing in mind that we do not own or operate many of the transport networks—such as relaxing the ban on night flying at Heathrow or the restrictions on drivers’ hours—we will do it.

[Mr Peter Bone (Wellingborough) (Con)]

I spent eight hours at Heathrow terminal 3 on Saturday, and there was no information whatever about what was happening to flights. On the other hand, people who were due to fly with British Airways from terminal 5 had advance notice and did not travel to the airport. The question must be: why did operators such as Virgin Atlantic not cancel their programmes? Will the Government look into that?

[Mr Hammond]

We will, and my hon. Friend’s question has to be addressed to the operators. British Airways made the call on Saturday morning to cancel all flights, because it considered it certain that the airport would have to close. I have spoken to Willie Walsh today, and he has told me that based on the forecast he saw on Saturday morning, any airport anywhere in Europe, bar none, would have had to close. BA therefore made the decision to pull all its flights.

The lesson that is emerging for BAA, which it will take away from the situation, is that it has to be more proactive in examining forward forecasts, and that when airlines do not make a decision to stop flights, the operator might have to make that decision for them, to avoid large numbers of people being stranded in terminals.

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

I hope that the Secretary of State will join me in thanking many of my constituents and their colleagues who work at Heathrow for trying to get the airport open and fully operational again in the most difficult circumstances.

I join the hon. Member for Wellingborough (Mr Bone) in saying that the lesson to be learned from the last occasion when such a problem occurred, although not on the same scale, was about information. We thought that lesson had been learned. BAA and the individual airlines must be required not only to take decisions soon enough, but to communicate them proactively and directly to customers travelling with them.

[Mr Hammond]

I am grateful to the hon. Gentleman for giving me the opportunity to record my thanks, and the thanks of the Government, to the hundreds of workers who have been out, often in temperatures of minus 10°C or minus 11° C, clearing snow and de-icing through the night, as well as caring for passengers stranded in terminals. They have done a fantastic job, and I am afraid they will have to go on doing that fantastic job for the next few days.

The hon. Gentleman is also right to focus on information. Nobody likes to have their travel plans disrupted, but one of the interesting features of human psychology is that somehow, things are never quite as bad if people know what is going on. As he will know, we have committed to introducing an airport economic regulation Bill during this Parliament. One thing that we are committed to doing in that Bill is ensuring that airport operators’ financial incentives are clearly aligned with the needs and interests of passengers. I will ensure that supplying information is part of that matrix, so that the operators will do it because it is in their financial interests. That certainly seems to be a motivating factor.

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

The Secretary of State will be aware that a delegation of Kent MPs recently met the management of Southeastern Trains to discuss the chaos and deep passenger dissatisfaction caused by the bad weather a few weeks ago. The latest conditions have yet again led to much disruption to services for Southeastern passengers. When the franchise is considered for extension in 2012 will he consider, among the other necessary factors, Southeastern’s poor service delivery during adverse weather?

[Mr Hammond]

Of course we examine the performance of train operators, and it is absolutely right that Southeastern’s performance was very poor during the bout of cold weather at the end of November. However, in the current weather conditions, the information that I have on Southeastern’s performance over the past 72 hours is far less clear-cut. The disruption has been no more than is to be expected in the extreme weather, and as I understand it, commuter services into London on Southeastern by and large operated normally this morning.

[Mr John Spellar (Warley) (Lab)]

The public expect Ministers to be players, not just spectators. Snow happens, but it is the urgency of the response that matters. The Secretary of State said nothing about whether Cobra has been meeting, nothing about what the Government offices are doing to co-ordinate their response, and very little about what he has done with the various companies and airports. He has not said whether he has asked them why they do not have senior management down there dealing with the problems, why the train companies have not got information to people who have waited for hour after hour on trains and platforms, or why the police are not taking action to get people off the motorway. With the Secretary of State for Energy and Climate Change sitting next to him, he did not say why he has not done anything about the exploitation of fuel oil and bottled gas. Does he think that that is why he is rumoured to be one of the early victims of the new year reshuffle?

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

May I say that we want very short questions? Obviously, it would be helpful—[Interruption.] Order, Mr Penning. It would be helpful if the Secretary of State could also shorten his answers, although I understand that this is a very important subject.

[Mr Hammond]

I can shorten the answer to that question, Mr Deputy Speaker. The right hon. Gentleman offered nothing constructive, and people watching will see that he has nothing to offer except a meaningless rant. I told him in the statement that a cross-ministerial team is meeting regularly and that regional resilience teams are in operation.

What is the right hon. Gentleman talking about, saying that none of the senior management are at airports? Of course senior management, both of the operators and the airlines, are there managing the situation hands-on. He had better ask the police why they are not taking action, because they take the action that they believe is appropriate.

As for fuel, my right hon. Friend the Secretary of State for Energy and Climate Change has asked the Office of Fair Trading to look into—[Interruption.] Labour Members seem to think that we should introduce some kind of Moscow-style central control over everything. The fuel oil business in this country is operated through hundreds of small independent firms, and if price collusion or illegal activity is driving up the price to consumers, the OFT will report back to my right hon. Friend and he will take the appropriate action.

[David Tredinnick (Bosworth) (Con)]

Will my right hon. Friend explain why some operators stopped flying when runways had been cleared and were still open? Secondly, why did it take four hours to remove a tanker from the M1, the country’s main arterial road, on Saturday afternoon, resulting in massive delays for southbound traffic?

[Mr Hammond]

I am not sure whether my hon. Friend is referring to a tanker accident on the M25 on Saturday afternoon.

[David Tredinnick]

indicated dissent.

[Mr Hammond]

There are problems in recovering tankers after accidents. I am aware of the accident on the M25, after which there was some possibility at first of having to pump the contents out of the tanker before it could be moved. In the end the fire brigade allowed it to be moved without the contents being removed, shortening the closure of the motorway by about three and a half hours.

[Mr Tom Watson (West Bromwich East) (Lab)]

What my right hon. Friend the Member for Warley (Mr Spellar) was asking for was leadership. People are sleeping on airport floors, being turfed off trains, and frozen in their cars, and they are cold in their homes because they are not getting deliveries of domestic fuel. Where is the Prime Minister? He is the invisible “Cam”, but he should be taking the leadership position on this.

[Mr Hammond]

I can tell the hon. Gentleman that people who are sleeping on airport floors and who are having their travel plans disrupted are not helped by such ridiculous rants from him and his colleagues. Those people need a calm, measured and considered response to the problems, which is what the Government are giving. This is an extreme weather event, and this Government will do better than the previous Government did last year.

[Mr Edward Timpson (Crewe and Nantwich) (Con)]

In his statement, the Secretary of State touched upon the steps that are being taken to ensure that health services are well prepared throughout this cold snap, but he will also recall that last winter, a number of A and E departments were forced to close because of the severe weather, including ones close to my constituency. What discussions has he had with the Department of Health to ensure that the emergency services, and particularly the ambulance service, are given robust support to ensure that they can continue to give a full service throughout this difficult time?

[Mr Hammond]

I have been in discussion with my right hon. Friend the Health Secretary. As I understand it, this morning, there were no major problems across the NHS—all NHS services are operating reasonably well. Of course, there have been isolated problems of getting staff into hospitals. In some cases, including in my county, Surrey, local 4x4 owners have volunteered to drive staff to A and E departments. Such voluntary action will help to reinforce the resilience of the NHS. Ambulance services are coping well at the moment, but if there are difficulties, the military stands ready to provide support with 4x4 vehicles if it is needed.

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

The last time the Secretary of State gave a statement on the weather, I asked him about winter tyres. He told me that he did not think them appropriate for this climate and this country, and indeed that David Quarmby looked at the matter. Try as I may, I could find no reference to winter tyres in the Quarmby report. The only advice I found was from the Highways Agency, which says:

“The safest option in these conditions is to fit winter weather tyres which are specifically designed to provide extra grip and improved levels of safety”.

Will the Secretary of State please now reconsider his response?

[Mr Hammond]

I am grateful to the hon. Lady for giving me the opportunity to clear something up—I clearly mangled my words in my reply to her. I was trying to convey that in the circumstances of the UK, and given the cost of fitting winter tyres, I do not believe it appropriate to mandate their use. However, I am happy to confirm on the record that for those who can afford winter tyres—not just the cost of buying them, but the costs of putting them on and changing them back at the end of the winter, and of storing summer tyres—they provide significant additional grip for motoring in such cold conditions.

Snow chains, however, are a different matter. It is illegal to use snow chains on roads that are not covered in compacted snow, because they cause considerable damage to the road surface.

[Matthew Hancock (West Suffolk) (Con)]

Will the Secretary of State join me in commending the nation’s army of gritters who were out overnight—in Suffolk, that involved temperatures down to minus 12°C—to keep our roads open? Will he also answer a question that was put to me by several constituents? Can he continue his steadfast and solid leadership of the past few days, rather than responding to the histrionic opportunism displayed by the Labour party?

[Mr Hammond]

My hon. Friend makes an important point. People who are watching this debate on the BBC News channel in an airport terminal will not find the laughter and hilarity of Opposition Members, or the unconstructive rants from some but not all Opposition Back Benchers, at all edifying or helpful to their cause. I am happy to join him in commending the stalwart work of the people who man the fleets of gritters, who are out every night in all conditions doing their important work.

[Mr David Hanson (Delyn) (Lab)]

What assessment have the Government made of the ability of aircraft and train operators to advise people who have been delayed of their statutory rights in respect of compensation? In slower time, will he arrange to meet insurance companies to ensure that they respond positively to the demands of people who have missed trains and flights, and had holidays ruined, or who have had pipes burst or damage done to their homes?

[Mr Hammond]

The right hon. Gentleman raises some important points. I can tell him that the Treasury has been talking to the insurance companies to ensure that people have the appropriate information and that companies can respond to inquiries about the extent of their cover. Often, those people will be in a real-time situation—stranded in an airport, for example—and will want to know what costs they can and cannot incur in trying to complete their journey. That is important.

The right hon. Gentleman will be aware that there have been developments in the past year or so in European jurisprudence with regard to compensation arrangements and the obligations on airlines to look after people who are stranded at airports. However, when the problem is caused by, for example, extreme weather conditions, compensation would not normally be payable as such.

[Tom Brake (Carshalton and Wallington) (LD)]

What discussions has the Secretary of State had with Southern Railway about its performance during this bad weather? Do Southern Railway and Network Rail need to invest in snow-clearing equipment to ensure that services run more smoothly in future?

[Mr Hammond]

I can tell my hon. Friend that I had a conference call with Southern Railway management and Network Rail’s route director on Wednesday afternoon to talk about their preparations for this bout of cold weather. We also spoke about some of the medium-term plans—I hesitate to call them that, but I am talking about plans for beyond the end of this week. They are looking to install experimental heated rail sections as well as to invest in additional clearance equipment. Clearing snow and ice from the railway is primarily a Network Rail responsibility, but train operators are increasingly considering installing anti-icing equipment on their trains to supplement what Network Rail does.

[Tony Cunningham (Workington) (Lab)]

Will the Minister at least consider additional funding for local authorities? In my area, the local authority is struggling desperately to keep streets open and roads clear, but an additional problem that people tend to forget is pavements. Many of my constituents are fearful of leaving their homes in case they fall, so will he at least consider additional funding?

[Mr Hammond]

As I said a few moments ago, local authorities indicate—the Local Government Association confirms this—that they will not have difficulty this year in funding their winter activities. However, the hon. Gentleman raises an important point about the extent of gritting and salting that local authorities plan to carry out. Those resilience plans will have been put in place well ahead of the winter, and they should be well publicised locally. In some areas, the plans will not include the salting and gritting of footways. I believe that there is a role for civic society to play in that. Many people, if they can get their hands on a supply of salt and grit, would be prepared to shovel a bit on to the pavements around their homes and their neighbours’ homes. I commend local authorities that have taken action to make supplies of salt and grit available for such neighbourly action.

[Justin Tomlinson (North Swindon) (Con)]

Does the Minister share my concerns that in stark contrast to the excellent work of many local authorities, developers responsible for unadopted roads all too often do not react quickly enough to adverse weather conditions?

[Mr Hammond]

I am afraid that I must tell my hon. Friend that the maintenance of unadopted roads is entirely a matter for the owners of those roads. Typically, that will ultimately be a matter for the owners of properties that front on to those roads, who often finance such work through their service charges. Like the rest of us, but through a rather different mechanism, they must decide whether they want to pay more in service charges so that they have a greater level of winter resilience for their roads.

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

Despite some of the heaviest snowfalls for decades in Newcastle, we managed to keep most of the public transport system going for most of the time. However, as my hon. Friend the Member for Workington (Tony Cunningham) said, many people found that they could not make it to the end of their streets because of ice and snow on the pavements. Given that, rather than simply commending councils that make grit available to local residents, is it not time for a requirement for people to have access to the grit that will enable them to get on with their lives?

[Mr Hammond]

The hon. Lady might revel in the thought of a centralised state where people in Whitehall press buttons and issue commands to local authorities, but we happen to take a different view of the world. Local authorities are responsible bodies answerable to their electors. They must make decisions about their priorities, and if they get it wrong, local residents know what to do about it.

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

This time last year, the ramp leading down to the parliamentary car park was covered in snow. It closed the car park. I offered to clear it myself, but was told that I was not qualified to do the job. I said, “Well, I’ve done it before”, but the answer came back, “Well, you can’t do it because of health and safety”. Will my right hon. Friend clarify the snow code he has introduced to ensure that we do not succumb to these ambulance-chasers? There are people in Britain who have that get-up-and-go attitude and who want to get out there and clean the streets, but who are worried about being sued under legislation and the direction of travel introduced by Labour, with health and safety getting such precedence. [Laughter.]

[Mr Hammond]

My hon. Friend is absolutely right. Labour Members may laugh, but they will remember this being a serious problem last winter, with people being afraid to clear snow and ice outside their homes and afraid to act as good neighbours. One of Quarmby’s recommendations was that we publish a snow code, compliance with which would give people a high level of protection from civil action. We have done that, and I hope that people will respond by acting in that neighbourly fashion.

[Nick Smith (Blaenau Gwent) (Lab)]

Will the Secretary of State confirm that the Government have failed to keep the emergency grit stocks at full capacity? Despite warnings of arctic blasts for weeks, grit stocks have been rationed, and emergency supplies are said to be 80,000 tonnes lower than they should be. If this is true, why has it happened and which Minister will be resigning?

[Mr Hammond]

I know that the hon. Gentleman is new and was not in the House last winter. He asked whether we are keeping emergency grit stocks at full capacity. There were no emergency grit stocks last winter. In fact, there were no grit stocks at all last winter. Local authorities and the Highways Agency have bought grit for their own use, and this year, for the first time ever, we have a strategic stockpile of salt—more than 300,000 tonnes of salt have been ordered for that stockpile, 156,000 tonnes of which have been delivered, and the remainder of which will be delivered between now and the middle of January. A further 250,000 tonnes have been sourced, and we are currently arranging transport to get it to the UK. I do not suppose that he has the faintest notion of the logistics involved in trying to uplift 250,000 tonnes of salt from around the world at short notice and to ship it to the UK in specialist vessels, so perhaps, before asking such a silly question again, he will think about what is involved.

[Chris Heaton-Harris (Daventry) (Con)]

The Secretary of State will have noticed that the spirit of Christmas has augmented the already happy-go-lucky nature of the shadow Secretary of State. However, she made one serious point in her reply to the statement, and it was about information. Some companies are using premium rate telephone numbers to get information to travellers. Surely the Secretary of State will be able to use some of his fantastic influence to try to make these information lines free of charge in this current crisis.

[Mr Hammond]

My hon. Friend is right that in many cases the only lever we have over private companies is to apply pressure. This is the first I have heard of this issue, but if he has specific examples, I will be happy to follow them up.

[Kevin Brennan (Cardiff West) (Lab)]

Many emergency and council workers will be working over the Christmas period dealing with the aftermath—and, indeed, the ongoing nature—of the weather conditions. Will the Secretary of State prove that he is not complacent by guaranteeing to the House that either he or one of his team will be in Whitehall during the recess, not at the end of the phone or travelling to some place else—not that they could—but at their desks, every day of the recess?

[Mr Hammond]

We have said—I said it in the statement—that we will continue with the arrangements in place for as long as necessary. We held teleconferences over the weekend with Welsh Assembly Government members, Scottish Ministers and regional resilience teams around the country. It is not practical to get all those people together in a single room—nor is it desirable when travel is dangerous and difficult—but I can assure the hon. Gentleman that the team in place will continue to monitor the situation on a daily basis for as long as it is necessary.

[Mr Sam Gyimah (East Surrey) (Con)]

I agree with the Secretary of State that in these times, calm and focused action is more important than histrionic responses. Will he let me know what steps he has taken to ensure that the airport de-icer supply chain is sufficiently robust and resilient to cope with the adverse weather conditions over the coming days?

[Mr Hammond]

My hon. Friend raises a real issue. I talked to Gatwick airport on Wednesday, and it told me that it was full to capacity with runway de-icing fluid. By yesterday evening, however, it had used about 90% of those supplies, although fortunately it will be resupplied tomorrow. However, the supply chain for airport de-icer is tightly stretched, and we are monitoring the situation on a daily basis with operators. Alternative products can be—and are—used in other places around Europe, and if supplies get really tight, operators will have to display some flexibility.

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

My constituents are now enduring their 23rd successive day of arctic weather. Schooling has been disrupted, the economy impacted and elderly and vulnerable constituents have effectively been imprisoned in their own homes for more than three weeks. Owing to the exceptional weather, North Lanarkshire council requested military assistance, but it was denied. Will the Secretary of State tell me now, or find out on my behalf, who took the decision to deny military assistance, and on what grounds?

[Mr Hammond]

I can look into the specific case, but I can tell the hon. Gentleman the general rules on the provision of military assistance. The Ministry of Defence will offer assistance to local authorities or other responders where the latter can demonstrate that no other means of delivering the required response are available. If contractors or own resources are available, military assistance will not normally be provided. Where the military has unique equipment, or where no alternative source of manpower is available, the MOD will look at requests sympathetically. We have to do it that way. We must not end up in a situation where local authorities think that they can reach for military manpower as a simple, low-cost solution to every problem. They have to exhaust all other avenues first. However, I will look into the case he raised and write to him later this afternoon.

[John Hemming (Birmingham, Yardley) (LD)]

I thank the Secretary of State for his statement and commitment to consider when “just in time” becomes “just too late”. I ask him to remind the Opposition that salt is not a panacea and that when temperatures fall below minus 5°C, there is little that can be done. That should be recognised. One of the legacies left to this Government by the Opposition is insufficient gas storage. Not only that, but it was not completely full at the start of winter. Furthermore, gas has been exported when taken out of storage. Will he commit to talking to the Secretary of State for Energy and Climate Change about this issue? I am particularly concerned that we are not maintaining storage when we could.

[Mr Hammond]

My right hon. Friend the Secretary of State is aware of the issue that my hon. Friend raises. Historically, the UK has had lower gas storage capability than many of our continental neighbours, but it is an issue that my right hon. Friend intends to address as soon as possible.

[Jeremy Lefroy (Stafford) (Con)]

Stafford is a proud railway town. Will the Secretary of State join me in congratulating rail workers up and down the country who have kept services going under often atrocious conditions? I pay particular tribute to staff in Stafford last night, who went the extra mile in giving information under difficult circumstances.

[Mr Hammond]

I am happy to join my hon. Friend in congratulating staff across the railways. They have been operating in extremely difficult conditions, and I have seen for myself something of a blitz spirit where people have been mucking in. Some of the old divisions between Network Rail and train operators seem to have melted away under the weight of the snow—if that is the right way to put it. Railway staff put in a fantastic performance over the weekend to get the railways operating normally—by and large—this morning.