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.

High Speed Rail

Lord Hammond of Runnymede Excerpts

Monday 20th December 2010 Commons Chamber

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

With permission, Mr Speaker, I want to make a statement on the Government’s plans for the development of a national high-speed rail network, and on the proposed route that we will put forward next year for public consultation.

One of the coalition’s main objectives is to build an economy that is more balanced both sectorally and geographically, and that will deliver sustainable economic growth while also delivering on our climate change targets. Investment in infrastructure, and transport infrastructure in particular, will be a key part of that approach. To deliver economic growth and carbon reduction, we must provide attractive alternatives to short-haul aviation while addressing the issue of scarce rail capacity between city centres. Network Rail has calculated that by 2024 the west coast main line will effectively be full, with no further enhancements that could reasonably be made to meet future demand.

The Government believe that the best long-term solution to those challenges is the development of a national high-speed rail network. Our proposed strategy is a Y-shaped network, to be delivered in two phases, the first being a line from London to the west midlands and the second the onward legs to Manchester and Leeds, with connections to points further north via the east and west coast main lines.

Our proposals will provide an unprecedented increase in capacity on the key north-south routes out of London through a combination of new infrastructure and released capacity on existing lines. Reliability will be improved and journey times between major cities slashed. Central Birmingham will be brought within 49 minutes of London—potentially less for non-stopping services—and within one hour five minutes of Leeds. The released capacity on the west coast main line offers the possibility of commuter-frequency fast services to London from places such as Coventry and Milton Keynes.

By running trains seamlessly on to existing inter-city routes, the proposed network will also bring Glasgow and Edinburgh within three and a half hours of London, which is fast enough to induce a major shift of passengers from domestic aviation. In the longer term, we will also explore with the Scottish Government the options for further reducing journey times to Scotland.

The development of a high-speed rail network has been a key factor in our decision on additional runways at London’s airports, which is why we said from the outset that any such network must be linked to our principal gateway airport and integrated with the European high-speed network via High Speed 1. In June, I asked HS2 Ltd to carry out additional work on such links. I have studied that work and the recommendations of Lord Mawhinney’s review, and I have also examined Arup’s proposals for a transport hub near Iver.

I have concluded that a spur route to the airport, running on the surface close to the M25 for part of its length, is the best option. It is lower-cost than the other options considered by HS2 Ltd, will keep journey times between London and Birmingham to a minimum and will retain the flexibility to be extended into a loop in future. To deliver the best possible value for taxpayers’ money, I propose that a spur route be constructed as part of the second phase of the network, opening at the same time as the routes to Manchester and Leeds. I have today asked HS2 Ltd to carry out further work on such a spur route, with a view to public consultation later in this Parliament alongside the routes to Manchester and Leeds. For the period prior to the opening of that second phase, high-speed rail travellers to the airport will be able to change to fast Heathrow Express services at Old Oak Common, where there will also be a direct interchange with Crossrail.

With regard to a link to HS 1, HS2 Ltd’s report identifies that a connection can be made via a new tunnel from Old Oak Common to the North London line near Chalk Farm, from where existing infrastructure can be used to reach the HS 1 line north of St Pancras. That proposal is significantly cheaper than any other option for a direct link, and it will enable direct trains to run from the midlands and the north to Europe without affecting existing service levels on the North London line. Such a tunnel can be constructed only before the Old Oak Common interchange comes into operation, so the link will be included in the phase 1 scheme put forward for consultation.

The Government believe that the construction of a high-speed rail network will support economic growth and the rebalancing of the UK economy, but we recognise that the proposed line will have significant local impacts on the areas it passes through and that we have a duty to do everything practically possible to mitigate those impacts. That is why, since my appointment as Secretary of State, I have reviewed the proposals of the previous Administration. I have looked at the case for high-speed rail, at the corridor options for a north-south route, at the different route options put forward by HS2 Ltd and in detail at the route option recommended in its March report. I have reached the conclusion, as the previous Administration did, that the route option recommended in March represents the most appropriate general alignment for the high-speed railway between London and the west midlands.

However, before finalising the detailed route that I am publishing today for consultation, I travelled the length of it and talked directly to local authorities, property owners, and many of the protest groups and their Members of Parliament, and I commissioned additional work on the options for improving the proposed alignment. As a consequence, significant amendments have been made to both the vertical and horizontal alignment, and to the proposed mitigation measures. In total, around 50% of the preferred route proposal published in March has been amended in some respect.

I am confident that solutions have now been found that can significantly mitigate the impacts of the railway at local level which, when properly understood, will reassure many of those who have been understandably apprehensive about the potential impact on their lives and their property values. For instance, in Primrose Hill, work to identify the most appropriate locations for the necessary vent shafts has shifted the proposed tunnel, and thus also the vent shafts themselves, to the north, away from the most sensitive areas of that part of London, locating them alongside the existing railway.

Between Amersham and Wendover, opportunities to cover sections of the proposed cutting to create a green bridge and a longer green tunnel have been incorporated into the route design to reduce its visual impact and avoid severance of public rights of way. By moving the alignment away from the historic property of Hartwell house, HS2 Ltd has been able to ensure that the line would not be visible from the house itself and that additional earthworks and planting can be undertaken to further reduce visual and noise impacts. In the most northerly section of the route, an improved alignment has been identified that would move the line further from Lichfield.

Despite our best efforts at mitigation, however, we will not be able to avoid all impacts on property values. Where a project that is in the national interest imposes significant financial loss on individuals, it is right and proper that they should be compensated fairly for that loss, so I have asked my officials to prepare a range of options for a scheme to assist those whose properties will not be required for the construction of the railway, but who will none the less see a significant diminution of value as a result of the construction of the line.

The forthcoming consultation will include proposals for such a scheme, which will sit alongside the statutory blight regime, which covers those whose properties would need to be taken to build the line. I am publishing today on my Department’s website, and placing in the Library of the House, a set of reports by HS2 Ltd that sets out for each route section the options considered and the changes proposed, together with detailed maps showing the revised preferred route from London to the west midlands in full. That route will form the basis for the public consultation, which I expect to begin in February next year.

When the consultation is launched, I will also publish a revised business case, a full appraisal of sustainability, noise contour maps and route visualisations, all of which can be completed only now that the final preferred route for consultation has been determined. Let me be clear that the consultation will encompass the Government’s strategy for a national high-speed rail network, the choice of corridor and the detailed line of route that I have outlined for the initial phase from London to the west midlands. As part of the consultation process, roadshows will be held along the length of the preferred route from London to the west midlands to ensure that local people have the opportunity to find out more about the project and to discuss specific concerns with those involved in developing the scheme.

It is my view that a high-speed rail network will deliver a transformational change to the way Britain works and competes in the 21st century. It will allow the economies of the midlands and the north to benefit much more directly from the economic engine of London, tackling the north-south divide more effectively than half a century of regional policy has done, expanding labour markets and bringing our major conurbations closer together. The consultation exercise that we will launch in the new year will be one of the biggest and most wide-ranging ever undertaken by any Government, and I urge all hon. Members with an interest to participate and to encourage their constituents to do so. These proposals have the support of political and business leaders from all parts of the United Kingdom, and I hope they will gain cross-party support in this House. I commend this statement to the House.

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

I thank the Secretary of State for early sight of his statement. Today, he is facing a rising tide of criticism over the transport chaos gripping the country, so it is unlucky that he is scheduled to update the House on high-speed travel on a day when most people would settle for travel at any speed at all. As he knows, it was Labour in government which set out a vision for a high-speed rail line running from London to Birmingham from 2026, and on to Leeds, Manchester and Scotland in phases during the following years. I pay tribute to the tenacity and determination of his predecessor, the noble Lord Adonis, whose exhaustive work on the scheme has allowed the right hon. Gentleman to pick up and run with the vision he has set out today for high-speed rail.

I recognise the importance of increasing rail capacity and connectivity, particularly in respect of the west coast main line and the Chiltern line beyond 2020. I assure the Secretary of State that Labour remains committed to investing in a world-class rail system, and that high-speed rail could have an important role to play in delivering it. That is why we began the planning process when in government—in fact, I suspect that his proposals probably have more support on the Labour Benches than on the Benches behind him. He is the one sitting in a divided Government, although for once the divisions do not involve the Liberal Democrats. No doubt, he will find out in due course whether he has done enough today to persuade the Secretary of State for Wales, who is in her place, not to resign in protest at his plans.

We have just embarked on a fundamental review of our policies, just as the Conservatives did after the Prime Minister became leader of his party—and just like the leader of the Liberal Democrats, who appears to have looked again at all his party’s policies since joining the Government. It would be ridiculous for our future support for high-speed rail not to be at the heart of that review—and it will be at the heart of it—given that it is a £30 billion commitment on future Parliaments. In the meantime, however, the Secretary of State has the support of Labour Members as he moves forward with the next stage of planning the route he has set out today.

It would be good if the Secretary of State were to show the same determination and commitment to other critical investment in our rail industry—investment needed now, not in future Parliaments. He has cut and delayed the vital investment we had planned for this Parliament; he has delayed the new generation of inter-city express trains and cut our plans for 1,300 new carriages; he has delayed much of the electrification that we planned and cut Great Western line electrification beyond Bristol and into Wales; and he has delayed the Thameslink and Crossrail schemes, which will not now benefit passengers until 2018—or is it now 2019? It keeps slipping.

We have set out an additional £7.5 billion of capital investment from which significant sums would have been invested in our rail networks in this Parliament. Does the Secretary of State realise that because he has cut so much spending in this Parliament while post-dating a £30 billion cheque for a high-speed rail scheme, the cost of which will fall in future Parliaments, people may well be sceptical about the extent of his commitment to Britain’s railways today? Does he understand how he puts at risk public support for future investment such as high-speed rail, given that he cannot even get the investment to keep our trains and other transport infrastructure running during severe weather?

Does the Secretary of State also understand the anger that will be felt in communities across the country when people hear him claim that his support for high-speed rail is due to concern about the north-south divide in Britain? His party’s support for high-speed rail is a fig leaf to disguise the fact that it has no strategy for investment, jobs or growth in the north. If he were really bothered about the north-south divide, he would not be supporting the scrapping of the regional development agencies, the future jobs fund and the education maintenance allowance, or the trebling of student fees, the delaying of broadband roll-out or the increase in VAT to 20%—another broken promise from both the Conservatives and the Liberal Democrats. If he were really bothered about the north-south divide, he would not be loading the largest cuts on to councils in the midlands and the north. If he were really bothered about transport links beyond the south, why is it that authorities in the north are facing the biggest cuts in their road maintenance and local travel projects, with Merseyside facing cuts of 49% and Manchester cuts of 42%, while midlands and southern counties are doing much better?

Let me ask the Secretary of State some specific questions about the scheme that he has announced today. What impact will the changes to the route, the additional compensation and hardship payments, and the other commitments that he has made today have on the £750 million that he has allocated in this spending period? Can he offer an assurance that that will not have a knock-on effect on other rail schemes already facing cuts and delays, and that it will not set a precedent for compensation in other cases where infrastructure is driven through people’s homes and businesses? He has previously referred to the construction costs for major projects in the UK being significantly higher than for comparable projects elsewhere in Europe. What progress has he made, working with Infrastructure UK, to find ways of bringing down the cost of the scheme to the taxpayer?

Will the Secretary of State confirm whether the cost of the trains to run on the high-speed line has been included in the figures used for the cost of the scheme; or, as with other schemes, such as Crossrail, do they constitute separate expenditure yet to be identified? One of the things missing from the debate on high-speed rail to date has been the likely cost of using the service. Does he agree that if all taxpayers are to contribute so significantly to the cost of constructing the route, it cannot be a service with ticket prices outside the grasp of most people? Does he agree that many people will question his commitment to take the line beyond Birmingham, when he is restricting his proposed legislation to the first part of the route? Why is he not taking powers in the hybrid Bill to build the line to the north of Birmingham?

The Secretary of State’s party has no credibility when it comes to investing in our railways. We remember the 18 years of Tory under-investment in Britain’s railways, and the botched privatisation, which resulted in years of instability and uncertainty. It was Labour that delivered years of sustained investment, leading to a doubling of passenger numbers. He is right to continue the work, which Labour began, to prepare for high-speed rail in the UK. However, we must also see investment in rail schemes that will benefit the country and assist growth and economic recovery now, not just in 15 to 20 years’ time. We must see investment in technology to improve the resilience of the network to severe weather, and we must see passengers protected from the spiralling cost of fares. If the Secretary of State is really serious about maintaining a consensus on high-speed rail and building public support for his plans, he should think again about some of the decisions that he has taken in his first few months in the job. He should think again about cuts to new carriages, the delays to electrification and the massive hike in fares.

[Mr Hammond]

I will start with the good bits. I thank the hon. Lady for what I think was her support for the next stage of the process—going through the consultation and introducing a Bill later in this Parliament, if that is what we decide as a result of the consultation. I am also happy to pay tribute, as she did, to the work of my immediate predecessor in developing the case for high-speed rail, although it is worth noting that not all his predecessors seemed to have been quite so committed to the project.

I am afraid that it is the hon. Lady who lacks credibility, in talking about our failure to invest in the railway. She can talk about a decade of Labour investment as much as she likes. What most people will have noticed is a decade of driving us towards the brink of bankruptcy. What we have done is salvage a substantial programme of investment in rail infrastructure—a programme the scale of which neither she nor many commentators outside this place predicted we would be able to continue with—in the context of the extreme fiscal constraints that we face. We have gone ahead with Crossrail and Thameslink, and with a programme of additional rail vehicles—gone ahead with, not merely announced unfunded promises, which is her legacy. We will go ahead with the inter-city express programme, as I have already announced. We will announce to Parliament the details of that programme, along with the electrification associated with it, in the new year. The hon. Lady can go on all she likes about proposing £17 billion of additional investment. Her party has no economic plan, no policies and no credibility.

Turning to the specifics of the hon. Lady’s response, the high-speed rail investment that we are proposing will be approximately £2 billion a year over a period of 16 years. That is roughly what we are spending now on Thameslink and Crossrail, so large infrastructure projects can be funded while the investment in the mainstream main line railway is funded as it is now.

The hon. Lady asked about our commitment to high speed rail as a means of addressing the north-south divide, and she reeled off a string of tried and failed mechanisms for addressing that persistent problem. We have decided to take a new approach to closing the gap between economic growth rates in the north and south, and the experience of other countries suggests that investment in strategic infrastructure is the best way to deliver that outcome.

The hon. Lady asked whether the change of route and the exceptional hardship scheme will impact on the £750 million that has been set aside for HS 2 during this Parliament, and the answer to that is no. She also asked whether there would be an impact on other rail schemes’ budgets, and the answer is again no. The HS 2 budget is ring-fenced; other rail schemes are typically funded through Network Rail and through support to train operators.

The hon. Lady asked about the compensation scheme. I have indicated that we will seek to go further than has happened with previous such infrastructure schemes in the UK, because it is right and proper that individuals who suffer serious financial loss in the national interest should be compensated. She also asked whether we will be setting a precedent in that regard. She should be aware that developing European jurisprudence in the area of property rights and the need for Governments to compensate is pointing towards more generous compensation becoming the norm, and I suspect that that will be the case for future projects.

On construction costs, yes, we are of course anxious to get such costs down to something closer to European norms. The hon. Lady will know that Sir Roy McNulty is carrying out a review, one element of which relates to the cost of UK rail construction, and Infrastructure UK is also engaged in that issue. A report will be published in April. She asked whether the cost of the trains is included in the total figure, and I can confirm that it is.

The hon. Lady also asked about the assumption with regard to ticketing and to the prices of tickets. I can tell her that the business case modelling assumes the same ticket pricing structures as those that are now in place on the west coast main line. In practice, however, the west coast main line and High Speed 2 will be in competition with each other. The operator of High Speed 2 will have a very large number of seats to fill, and we anticipate that the processes of competition in the marketplace will create opportunities for passengers who are prepared to buy advance tickets and to shop on the internet to get bargains for travel between London, the midlands and the north.

Finally, the hon. Lady asked about the strength of our commitment to going beyond Birmingham. With respect, when her party was in government, its position was always focused on a line from London to Birmingham. It was us who took the debate beyond Birmingham and made the case for Manchester and Leeds. Indeed, the business case for this railway, for the connection to Heathrow airport and for the connection to HS 1 depends on a railway that forms a complete network linking Britain’s four principal population centres, so I can assure her of that commitment.

I put it to the hon. Lady, however, that if we had sought to carry out the detailed work required for a hybrid Bill that covered the entire route, including the legs to Manchester and Leeds, it is unlikely that we would have been able to introduce such a Bill until the end of this Parliament. Our decision was therefore to introduce a hybrid Bill to deal with the London to Birmingham section—which is already a massive undertaking—in 2013, and that, while that Bill is going through Parliament, we should continue our detailed work on the legs to Manchester and Leeds, so that they can be included in a further hybrid Bill in the next Parliament.

[Dan Byles (North Warwickshire) (Con)]

The Secretary of State kindly visited my constituency to investigate the impact of the route there. He will recall that he himself noted how high it would be. There would be large gantries and viaducts crossing motorways. At the time, he said that he would ask HS2 Ltd whether it could do anything to mitigate the impact. He did not mention North Warwickshire in his statement; is he able to give people in the area any good news?

[Mr Hammond]

I think that my hon. Friend is referring to the point at which the railway will cross the M6 at Coleshill. At my request, HS 2 looked into whether it was possible to build under the motorway, but I am afraid that that is not technically possible. HS 2 has managed to reduce the height of the proposed flyover by a modest amount, but I am afraid that it will still be quite high at Coleshill.

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

Will the Secretary of State confirm that what he has announced will involve the demolition of 350 flats in my constituency, the building over of a well-loved park, and the abandonment of a proposal to rebuild a girls’ Catholic secondary school on the part of the site that has been taken over? While people in Primrose Hill may welcome the minor changes that he has announced, they will feel a little surrounded if there is to be a further tunnel on the other side of Primrose Hill, emerging at Chalk Farm, because they will have a tunnel on both sides. Does the Secretary of State accept that HS2 Ltd really ought to go back to the drawing board? The idea that the connection of a significant network will be dependent on a spur connecting HS 2 with HS 1 is preposterous, and the company really ought to start again.

[Mr Hammond]

Before the right hon. Gentleman describes the proposal as preposterous, he should look at what has been published and consider it carefully. It is a carefully worked-out engineering solution that provides a value-for-money answer for people who believe that it is essential for trains to run directly from the midlands and the north of England, through the channel tunnel, and onwards to the European high-speed network.

The right hon. Gentleman asked about the impact on his constituency, which arises largely from the planned expansion of Euston station. Yes, there will be a number of property demolitions and replacements. It is planned to replace the properties that I have seen alongside the railway in his constituency with new properties. Some of the existing properties date from the 1920s and 1930s, and could do with being replaced. As he said, part of a small park will also be required.

The detailed design for the replacement Euston station has not yet been completed, but it is possible that it will be largely below ground level. At present, a large piece of the structure effectively creates a barrier down the middle of the right hon. Gentleman’s constituency, separating east from west. Camden council is keen for that barrier to go, and for a natural pattern of streets to be opened up at the back of Euston station. I hope that we shall be able to facilitate that through this project, and to bring a positive benefit to the people of Camden.

[Andrea Leadsom (South Northamptonshire) (Con)]

My right hon. Friend is well aware that my constituency has been severely blighted by the proposed route of the high speed railway, and he has received about 500 letters from me explaining quite how devastating that is for my constituents, so I shall not dwell on that now. Let me ask him, however, whether this is really the best value for money and the best solution to the undoubted need for new transport infrastructure. In particular, is the demand for seats really going to grow by 3% every year, as has been forecast to make the economic case? Is it really true that people do nothing when they are sitting on a train, and that that is dead time? There is also a lack of connectivity: there is nothing in it for anyone who is under the track.

Let me say finally—as you are looking at me crossly, Mr. Deputy Speaker—that there is a risk that other trains will be axed later to make way for HS 2 trains on the platforms. I should be grateful for the Secretary of State’s comments on that.

[Mr Hammond]

I can reassure my hon. Friend on the last point. Other trains will not be axed to make way for HS 2 trains. This will be a dedicated high-speed passenger line, and it will not affect other railways.

My hon. Friend asked about the impact on South Northamptonshire. Obviously I am well aware of her concerns: I spend most Sunday afternoons signing letters to her and my right hon. Friend the Member for Chesham and Amersham (Mrs Gillan). We have gone to great lengths to try to minimise the impacts on my hon. Friend’s constituents and the communities she serves. If she looks at the maps and plans we have published today, she will see that we have been able to achieve a reduction in the impact, and I hope that, during the course of the consultation, I will be able to engage with local communities about the mitigation measures that will be put in place, including extensive planting, bunding and sound barriers to reduce that impact further. On the question about growth in passenger numbers, the model the Office of Rail Regulation uses is based on demand for travel growing broadly in line with the economy and all the evidence suggests that that is the case. Those growth forecasts are robust and we expect them to be achieved.

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

High Speed 2 is about vital economic development, as well as about providing essential additional capacity for passengers and freight, but when will the Secretary of State explain how this essential economic development will take place, and will he guarantee that the line will run past Birmingham so as to bring benefits to the north, as well as between London and Birmingham?

[Mr Hammond]

The hon. Lady is, I think, repeating the suspicion—I can only describe it as that—of the Opposition spokesman, who expressed some concern that we might not be going to continue beyond Birmingham. Our firm intention is to go to Leeds and Manchester. Indeed, the business case will be based on the completion of the Y network to Manchester and Birmingham, but I would not like anyone to be—

[Frank Dobson]

And Leeds?

[Mr Hammond]

Yes, and Leeds. However, I would not like anyone to be under the illusion that benefits for people living north of Birmingham will begin to accrue only when the second phase is built. The point of reconnecting the first phase of the line to the west coast main line is that people travelling to Manchester, Liverpool and Scotland will enjoy journey-time savings from the point at which the first phase to Birmingham is opened. That is because the trains we will operate on this proposed railway will run straight off the high-speed line and on to the classic line, dropping the speed down to the line speed of the classic line, but allowing passengers to enjoy the benefit of the journey-time saving between London and Birmingham.

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

I hope it is in order, Mr Deputy Speaker, briefly to congratulate you on your brave announcement yesterday, and to welcome you to the club.

Has my right hon. Friend the Secretary of State had an opportunity to study the experiences of countries such as France, Germany and Spain and the lessons they learned in the construction of their high speed lines? I am thinking in particular about their very effective schemes to minimise noise pollution. Also, please can we ensure that our new railway infrastructure is not a series of new ugly concrete constructions, but instead that we have structures of which we can proud, as we have had in the past with, for example, the Forth bridge and Brunel’s tunnels and viaducts?

[Mr Hammond]

I am grateful to my hon. Friend for his question. Yes, we have looked very closely at what has happened in France and at what is happening in Spain, and we have drawn on the experience of those countries in modelling the business case and addressing the approach to mitigation. My hon. Friend’s question reminds me to make a rather important point. We will not be committing to orders for trains for this railway until almost 2020, so there is another 10 years’ worth of train design development before the commitment has to be made.

[Frank Dobson]

Like for the aircraft carriers.

[Mr Hammond]

Well, they were your aircraft carriers, and I am not going to let the right hon. Gentleman anywhere near designing our trains; that is for sure.

The Eurostar trains that run on HS 1 were designed nearly 20 years ago and have concentrated power cars at front and rear. There will therefore be about 30 years of evolution in train design in respect of reducing noise and increasing fuel efficiency between the design of the Eurostar trains and the design of the trains that will run on these lines.

I also say to my hon. Friend that where we can hide this line, we will hide it. Where we cannot hide it, we will ensure that it is architecturally designed and that it is something that people are pleased to look at, not a British Rail engineering-style eyesore.

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

Given the massive cuts to regional and local transport systems that have already been announced and the fact that the capacity problem could be dealt with by investment in the existing west coast main line, why are the Government wasting billions of pounds of taxpayers’ money on this scheme?

[Mr Hammond]

Because the capacity problem could not be dealt with by further investment in the west coast main line. [Interruption.] The hon. Gentleman says that it could, but if he looks at the engineering reports that have been published, he will see that, in practice, it could not. We are going ahead with additional rail cars and additional train sets on the west coast main line, and the Network Rail route utilisation study published two weeks ago shows that by 2024 the line will be operating at capacity between London and Manchester, and London and Birmingham. It is not possible, because of the design of the infrastructure—we are not just talking about platform lengths—to put longer trains on a railway that is designed in the way that the west coast main line was designed. If he recalls the chaos that lasted for years when the west coast main line was upgraded a couple of years ago and if, on the back of that, he is seriously proposing that we should add two additional tracks to its entire length while resignalling the whole thing, he needs to think again.

[Duncan Hames (Chippenham) (LD)]

I congratulate the Secretary of State on having the foresight to add a connection from High Speed 2 to High Speed 1. Can he tell me what the capacity will be for this link and so give this House an indication of the proportion of services from Birmingham that will be able to be through services to the continent?

[Mr Hammond]

The determining factor, of course, will be commercial considerations: how much passenger load there is and where interchanges might be made in the system between Birmingham, Manchester, Leeds, Old Oak Common and the route through the channel tunnel. However, the proposed single bore tunnel will have capacity for four trains per hour in each direction.

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

The Secretary of State’s response to the hon. Member for North Warwickshire (Dan Byles) will bring little comfort to people in Warwickshire or those living on the outskirts of Coventry. I wish to ask the Secretary of State specifically about the increase in the frequency of service between Coventry and London that he mentioned in his statement. Does he understand that what will anger a lot of people is the blighting, which can go on for many years? What sort of compensation scheme will he offer? Normally, such schemes are based on market values, but the market value of some of the properties involved is set to drop drastically. Can he answer that one?

[Mr Hammond]

The consultation will set out the proposals for compensation. Of course compensation arrangements have to be based on market value, but they should be based on the unblighted market value of the property in question. On the frequency of services from Coventry to London, one of the points that I have tried, on several occasions, to make to the hon. Gentleman and to other hon. Members is that the west coast main line will change radically in nature once this railway is built. It will no longer be primarily about long-distance trains from Scotland, Preston, Manchester and Liverpool; it will be about long-distance commuter services. Places such as Milton Keynes and Coventry will be well within commuting range of London with fast commuter services. I say to him that if he looks around the south-east, he will find that one of the great drivers of prosperity is the ability of people to get into London quickly and reliably on frequent services. The ability to extend that to stations on the west coast main line will greatly benefit the population of those areas.

[Stephen Hammond (Wimbledon) (Con)]

I commend my right hon. Friend on his statement and the speed with which he has brought forward these proposals. He is particularly right to reject some of the criticisms of the Opposition, because I recall that their conversion came only with Lord Adonis and that proposals for anything beyond Birmingham were tacked on only in March this year. What discussions has my right hon. Friend had with Transport for London? Beyond Old Oak Common, what dispersal measures will be needed in London?

[Mr Philip Hammond]

By the time the HS2 railway is built, the improvements and upgrades to the Northern line—for which we confirmed our investment funding in the recent spending review statement—will be completed. Dispersal will take place, it is estimated, with about one third at Old Oak Common, with passengers dispersing principally on to Crossrail, and about two thirds at Euston, with the upgraded Northern line. I have also asked HS2 to consider remodelling the station at Euston, so that Euston Square station can be incorporated into the main Euston station, giving access to additional underground lines.

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

These things are never easy, and the Secretary of State has said that he has done a lot of listening. When he sets up the roadshows for the new proposals, will he personally attend them to hear what citizens have to say about his new plans?

[Mr Hammond]

I am not sure that that will be practical, in view of the number and frequency of the roadshow events. I can absolutely assure him that I will attend at least one—probably more than one—but I certainly cannot promise to attend all of them. Perhaps I might elaborate on this point. We intend to hold specific, locally focused roadshows at multiple points along the line of the London to Birmingham part of the route, where the exact route alignment has been defined. We envisage that those discussions will mainly be about local impacts. We also intend to hold a series of more broadly based meetings across the UK to discuss the broader principles of high speed rail and some of the more strategic issues about the route choices.

[Andrew Stephenson (Pendle) (Con)]

I welcome my right hon. Friend’s announcement, which I believe will help address the north-south divide. Has he made a detailed estimate that is available to Members of the huge economic benefits of this scheme to the north of England?

[Mr Hammond]

A full business case showing the economic benefits of the proposed railway will now be updated on the basis of the route that I have set out today. That will be published at the commencement of the consultation in February.

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

I am suspicious, even though I do not want to be. I want to give the Secretary of State complete support, but 90% of investment in railways already goes into the south-east. As he said, £2 billion a year goes into Crossrail and £2 billion a year into Thameslink. Now he is suggesting that another £2 billion a year should go into the Birmingham-London link. It would partially remedy the north-south divide if the work was started in the north and moved to the south. If he cannot do that and really wants the support of northern MPs, the hybrid Bill should cover the lines to the north, too. Will he consider that?

[Mr Hammond]

I understand the hon. Gentleman’s suspicion. It is in the blood, I suspect. I also understand his point, and it would help to allay these concerns if, in some way, we could include in the first hybrid Bill specific commitments to Manchester and Leeds. We cannot include detailed route alignments and land acquisition because that would make the Bill vast and it would probably be in Committee for about five years. I take on board his points, and also any suggestions he might have about how we might do that practically, which is something that I have also discussed with my predecessor. Everyone who wishes this project well understands the need to give strong reassurance to those communities around Manchester, Leeds, South Yorkshire and the east midlands that stand to benefit from the second phase.

[Stuart Andrew (Pudsey) (Con)]

May I, too, offer my best wishes and support to you, Mr Deputy Speaker?

Having travelled down this morning on a very packed train from Leeds, may I say how much I welcome this statement? I am looking forward to seeing HS 2 come to Leeds. Given that trains going in and out of the station in Leeds are expected to see a 40% increase in the number of passengers, what extra capacity does the Secretary of State think that HS 2 will bring to the long-suffering passengers in Leeds and the north of England?

[Mr Hammond]

The route will more than triple the potential capacity available to passengers. I suspect that the very packed train that my hon. Friend experienced this morning might have been due to some specific problems on the east coast main line caused by overhead cable difficulties. I welcome his support. This will be a major deliverer of economic regeneration to Leeds and, in the next economic cycle, I hope that Leeds can resume the dash for growth and regeneration that it has so clearly pursued over the past few years.

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

The Secretary of State will be aware of the strength of support among the Scottish business community and the Glasgow and Edinburgh economic partnership for the principle of extending high speed rail to Scotland. When does he expect to open detailed discussions with the Scottish Government about the financing of high speed track in Scotland, should the Scottish Government decide to accommodate that? Can he give us an indicative timeline, if those discussions prove successful, for when we might expect to see high speed track in Scotland?

[Mr Hammond]

It is important for the hon. Gentleman to note that the benefit is incremental. Once we have high speed to Birmingham, that will shorten journeys to Glasgow and Edinburgh, and once we have high speed to north of Manchester, that will shorten them still further. We are committed to discussions with the Scottish Government, but that would be a third phase to the project—we have to get to Manchester and Leeds first. The appropriate time to start discussing that third phase will be when we start the detailed design work on the second phase.

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

Can we support High Speed 2 as a movement toward sustainability and welcome the Government’s communication with people? I refer particularly to the extension to HS 1, which allows the modal shift from airlines to railway usage. Will the Secretary of State consider supporting the way in which the A45 is to be moved to within Birmingham international airport so that the runway extension is in place for when High Speed 2 comes through?

[Mr Hammond]

The hon. Gentleman has thrown a slightly separate question at me there, but I can confirm that I have had discussions with Birmingham airport, and indeed the NEC, and they are strong supporters of the project. Like many others, they see it as opening up huge opportunities for them.

Birmingham airport will be about 30 to 35 minutes’ travel from London Heathrow on the high speed rail link. That is less time than it currently takes, with a fair wind, to get from terminal 4 to terminal 5 at Heathrow. The opportunities are quite significant.

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

Returning to Birmingham, but this time to the spur that goes into Birmingham, I was intrigued by the Secretary of State’s announcement on compensation and enhanced compensation schemes. Do they apply only to the main line or also to the spur into the centre of Birmingham? As well as applying to private individuals, do they apply to institutions such as universities with halls of residence that are somewhat inconveniently located on some of the routes?

[Mr Hammond]

The exceptional hardship scheme, which is the scheme in place to deal with people who have an urgent and pressing need to move and cannot do so because of the effects of uncertainty around the proposals, applies to the complete alignment of the route into Birmingham. It applies to residential properties, but not to commercially owned properties. It is unfortunate that the halls of residence to which the hon. Lady refers—a virtually new building—sit across the route of the railway. If the railway goes ahead, that commercially owned property, or at least part of it, will have to be demolished and full compensation will be paid. I expect that it will be rebuilt in full with the proceeds of that compensation.

[Mr Deputy Speaker (Mr Nigel Evans)]

I call John McDonnell—I am sorry, I mean Jeremy Lefroy.

[Jeremy Lefroy (Stafford) (Con)]

Thank you, Mr Deputy Speaker. I thank my right hon. Friend for his statement. He said that after the first stage of the project is complete, trains will run on the existing west coast main line northwards. Given the limit on the number of train paths on that line even now, what effect will that have on existing services and timetables?

[Mr Hammond]

The major constraints on capacity are south of Manchester, particularly on the Birmingham to London stretch, but clearly there will still be constraints on capacity as there is not infinite capacity available. We expect a significant proportion of train paths in the early days will be on the London to Birmingham and London to Manchester routes with a smaller number going on northwards, reflecting current patterns of passenger demand.

[Mr Deputy Speaker]

And now the ever-patient John McDonnell.

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

Thank you, Mr Deputy Speaker. I say to the Secretary of State that I am just grateful we are getting a train set for Christmas and not a third runway at Heathrow. He has referred to the Heathrow link, the Mawhinney review and the Arup proposals for a transport hub near Iver and has concluded that there should be a spur to the airport running close to the M25. Does that mean that the Iver hub will or will not take place?

[Mr Hammond]

We do not favour the proposal for the Iver hub as a way of delivering high speed rail passengers into Heathrow. It is worth noting that the proposals that Arup worked up on its own account—it was not commissioned to do so—around the hub at Iver were originally intended as a proposal for getting traffic from the Great Western main line into Heathrow. HS 2 came along as a bit of an add-on to that proposal, and Arup may still wish to pursue it as a proposal that is of interest for that purpose, but it is not our preferred route for getting high speed rail passengers into Heathrow.

Search and Rescue Helicopters (Procurement)

Lord Hammond of Runnymede Excerpts

Thursday 16th December 2010 Written Statements

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

Together with my right hon. Friend the Secretary of State for Defence, I had planned to announce to the House today an intention to proceed with negotiations with the preferred bidder for the planned procurement of search and rescue helicopter capability. However, the preferred bidder has informed the Ministry of Defence within the last 48 hours that it has become aware of a possible issue in connection with its bid to provide the UK search and rescue capability, which was the basis of its selection as the preferred bidder as announced in February 2010.

In the circumstances it is not appropriate for us to proceed with the planned announcement until the status of this issue has been clarified.

My right hon. Friend and I will make a further statement to the House as soon as we are able to provide further information and to set out our plans for proceeding to secure the provision of search and rescue helicopter capability in the future. We regret the further uncertainty that this entails for all those involved in providing the UK’s search and rescue service.

Rail Industry Review

Lord Hammond of Runnymede Excerpts

Tuesday 7th December 2010 Written Statements

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

This Government are determined to secure a sustainable and efficient railway. The spending review settlement has demonstrated our commitment to rail transport. The sustained financial support we have offered now needs to be matched by a relentless drive for efficiency on the part of the industry.

Sir Roy McNulty’s value for money review has reached some important interim conclusions. In his interim report being published today and being made available in the Library of the House he finds that:

the railway is costing more than it used to and more than it ought to. Greater efficiency would realise savings of £600 million—£1,000 million per annum by 2018-19 without cutting services or lowering quality;

the key to securing these efficiencies is a cross-industry focus on reducing costs and improving value for money;

that in turn demands closer working and alignment of incentives between train operators and Network Rail and strong leadership across the industry. Inevitably, such alignment, if it is to be effective, will involve Network Rail working more closely at a local level with train operators.

The most pressing need is to ensure that incentives across the industry are aligned, so that all parties strive to improve the quality of services and to provide value for money for taxpayers and passengers. Train operators are too narrowly focused on franchise specifications (which are often over-detailed). Network Rail has concentrated on network performance and safety targets. These are important objectives. But there is no cross-industry focus on the fundamental purpose of the railway—moving people and goods efficiently across a network while securing the best long-term value for money for farepayers and taxpayers.

The second phase of the value for money study will focus on identifying opportunities for greater alignment and changes that will secure greater efficiency and better value for money. Sir Roy’s final report is due to be published in April 2011. These initial conclusions, however, are so important that it would be wrong to wait until then before starting to respond.

Today, I am announcing the establishment of a high-level group, which I will chair, that will examine the options for getting those responsible for track and train to work together to drive down the cost of the railway for the benefit of passengers and taxpayers, while improving the quality of services. Sir Roy McNulty’s final report will inform the group’s work.

This group will consider options for structural reform in the industry. My presumption is that, at an operational level, there are some network-wide planning and technical functions which can only be discharged by a single national body, acting as custodian of the network. That should not preclude reforms which allow route or area-based alliances to be established, focused on aligning specific track and train operations where this best serves the needs of customers.

I am clear, however, that no changes should be made that would jeopardise the impressive improvements in safety and punctuality achieved across the industry in recent years. There is a spectrum of options which could contribute to achieving a better alignment of incentives. We expect that the optimal solution will vary for different parts of the network, reflecting the diversity of our railways and differing local needs. A one-size-fits-all model is unlikely to be the right solution. I am also clear that the changes we are proposing must protect the interests of freight operators on the network.

I envisage that this work will lead to the publication of proposals for industry reform by November 2011—as set out in my Department’s business plan.

In parallel with the value for money review, my Department has been consulting on possible changes to the franchising system. We have invited views on moving to longer franchises with less detailed specifications and greater incentives for operators to act efficiently and invest in the improvements passengers want. These principles have been widely welcomed and they will form part of our plans for making the railway more efficient and more responsive to passengers’ needs.

However, franchising reform needs to be co-ordinated with Network Rail reform: they are two sides of the same coin. We also need to co-ordinate the programme of franchise renewals to take account of major planned railway projects which will inevitably disrupt operations in certain franchises.

A number of franchises will fall due for re-tendering over the next couple of years. Because we intend, typically, to let longer franchises of at least 15 years duration it is important that the reforms we wish to make following the McNulty review, the franchise consultation and the work of the high-level group are incorporated into the terms of these franchises.

I therefore propose to use a short contract, openly competed during 2011, to run and improve services in the Greater Anglia franchise while we carry out this work. I then expect to award a new long-term franchise for the operation of services in East Anglia to commence in 2013. In 2012, I propose to award a franchise to operate InterCity west coast until the planned opening of HS2 in 2026. Then, in late 2012, I propose to award a franchise of 15 years to operate the east coast main line services.

The rest of the retendering programme for 2012 and 2013 will depend partly on decisions by my Department and existing operators on the termination dates of current franchises. We also need to avoid overloading the industry by inviting too many tenders at the same time. The trans-Pennine express franchise could contractually be extended by up to five years beyond 2012: my Department is discussing a proposal for an extension with the current operator. Alternatively, this franchise could be retendered for at least 15 years, possibly in 2013 alongside the northern franchise. The Essex Thameside franchise will also be retendered by 2013 for at least 15 years. The Greater Western franchise will be retendered in either 2013 or 2016, again for at least 15 years, upon expiry of the existing franchise agreement in accordance with its terms. In the case of Thameslink and South Eastern it is not currently appropriate to let long-term franchises, since both will be heavily affected by Thameslink work at London Bridge station. So these franchises will be retendered on a short-term interim basis as they fall due. My Department will then let long-term franchises to cover the operation of Thameslink and South Eastern services, once the London Bridge station reconstruction is complete.

Winter Weather

Lord Hammond of Runnymede Excerpts

Thursday 2nd December 2010 Commons Chamber

[Roberta Blackman-Woods (City of Durham) (Lab)]

(Urgent Question): To ask the Secretary of State for Transport to update the House on the Government’s response to the severe winter weather.

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

Last year, the country experienced the most prolonged period of cold weather for 30 years. Weather conditions meant that the cost to the economy and the disruption to the public was significant and unacceptable. The Government took urgent action during the summer so that the country would be in a more resilient position this winter. We have studied the recommendations in David Quarmby’s review of last winter’s transport disruption, which was established by my predecessor and which I published in October.

We have taken action to address the points raised in the review. Salt stocks are at a much higher level than at this time last year and a national strategic salt reserve now exists for the first time to support local authorities whose individual stocks run out. Some 250,000 tonnes of salt have been ordered for that reserve, which will be managed by the Highways Agency, and more than 100,000 tonnes are already in place. In addition, the Highways Agency has 225,000 tonnes of operational stock for use on its own strategic road network and at the end of November local authorities had approximately 1 million tonnes of salt stock. The Highways Agency has ordered a further 60,000 tonnes and Scotland has separately stockpiled 30,000 tonnes.

Recommendations were also made in the Quarmby report about the measures that local highway authorities needed to take to keep our road network moving in the event of snow and ice this winter. In the past few days, there has been unusually heavy and persistent snow, in much greater quantities than were experienced earlier this year, down much of the eastern side of the country. The great majority of the strategic transport network has been kept open this week, but road and rail services in the areas worst affected by snow have been seriously disrupted. Highways authorities are working to keep roads open, but delays have been caused by broken-down vehicles and minor accidents. It is clear that abandoned and broken-down vehicles preventing access for gritters and in some cases preventing access to highway depots were major factors in yesterday’s situation.

Most airports in England are keeping services running, but Gatwick has been directly affected by the worst of the snow conditions in England and remains closed today. One hundred thousand tonnes of snow have been cleared at Gatwick during the past 24 hours, and 80 full-time equivalent personnel and 47 snow-clearing machines are in operation at the airport. Many eastern rail services and Southern rail and Eurostar services have also suffered disruption and delay. Network Rail and train operators are working together to deliver as many services as possible. Night-time ghost trains have been run wherever possible, but build-up of ice on third rails across the Southeastern and Southern networks has led to loss of power and trains being stranded, causing severe delays and cancellations.

We are not alone; our northern European neighbours, and even Switzerland, are similarly affected—Geneva airport was closed for 36 hours. The Government fully recognise the frustration of the travelling public, and we are doing everything we can to keep Britain moving. Given that much of the country is being hit by severe weather unusually early this year, I have asked David Quarmby to conduct an urgent audit of highways authorities’ and transport operators’ performance in implementing the recommendations in his report, and to consider any further steps that might need to be taken.

I want to make it clear that I am asking David Quarmby to address the question not of whether we expect disruption when we have weather of such severity, but of whether there is anything that could or should have been done that has not been done. I expect to receive his report before the House rises for Christmas, and I will make a statement on his immediate findings at that time.

[Roberta Blackman-Woods]

I am grateful to the Secretary of State for his response, but does not the fact that he has responded rather than the Minister for the Cabinet Office, who is in his place, show that the Government have no co-ordinated response to the problems created by the severe weather conditions? Will the Secretary of State tell the House who, if anyone, in Government is co-ordinating ministerial colleagues? As he said, the severe winter weather is creating huge problems: 1,500 schools are closed today, disrupting children’s education and preventing parents from getting to work; local authorities are reporting concerns about deliveries of grit; and ambulance services and hospitals are reporting cancellations of services. It is clear, therefore, that the problems are not confined to transport, but affect vulnerable people and the running of vital public services.

People were trapped in their cars, on trains and at isolated stations for many hours during the night, and many others are cut off in their homes, raising concerns about food deliveries and fuel supplies. Will the Secretary of State therefore tell us not just what he is doing, but what the Secretary of State for Education is doing on the schools situation, what the Secretary of State for Health is doing to keep hospitals running, and what the Secretary of State for Communities and Local Government is doing to ensure that local authorities have what they need? Finally, can the Transport Secretary tell us whether there are any plans to convene Cobra today to help co-ordinate the Government’s response to the severe winter weather? That certainly needs to happen.

[Mr Hammond]

The list of problems that the hon. Lady read out are overwhelmingly related to the difficulties in the transport system. There is a long-established principle that the Department with lead responsibility for the problem co-ordinates across Government, and the Department for Transport has taken the lead in responding to this situation so far.

The hon. Lady said that local authorities are having difficulty obtaining supplies of grit, but my Department has not been contacted by any local authority with such difficulties. We have more than 100,000 tonnes of grit available in the Highways Agency’s strategic stockpile ready to be made available to local authorities if they request it. The hon. Lady asked whether Cobra was planning to meet. The situation is being kept under continuous review, and if it is appropriate to convene a meeting of Cobra later today, that meeting will be convened.

[David Tredinnick (Bosworth) (Con)]

Why was the A5 in the midlands partly closed? Will the Secretary of State please write to me about that? Does he recognise that the A5 is a national highway? This is not a county matter.

[Mr Hammond]

Most of the strategic road network across the country has been kept open, and most of it is open today. Some strategic roads have been closed, particularly on higher ground, either because of exceptionally heavy and drifting snow or because they have been blocked by accidents or abandoned vehicles. Individual decisions will have been made by the Highways Agency or, in some cases, by the police. I will write to my hon. Friend and tell him precisely the reason for the A5 closure.

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

I am afraid that the Secretary of State is demonstrating a remarkable—indeed, breathtaking—degree of complacency. Unfortunately, he is not filling the House with any confidence that he is dealing with his responsibilities adequately. He may recall that, on the publication of the interim report on winter resilience in July, he said:

“For two winters in a row, severe weather has caused significant disruption for transport in this country. The cost to the economy and the disruption to the public has been significant, and there has been a level of dissatisfaction and confusion about the response by Government at both local and national level. This is unacceptable and must be resolved before the next winter season.”—[Official Report, 26 July 2010; Vol. 514, c. 72WS.]

Is he really arguing that it has now been resolved?

Earlier today, during Transport questions, the Secretary of State said not only that the final and interim reports on winter resilience had been studied and not only that action had been taken—which he has just said again—but that the reports’ recommendations had been implemented. He appeared to row back from that statement in his response to the urgent question. Will he make clear in what way the 17 recommendations in the interim report and the 11 further recommendations in the final report have been implemented? Has the salt cell been activated, and, if not, can he tell us why not? Have the 250,000 tonnes of salt actually been stockpiled? The Secretary of State said that the salt had been ordered, and then said that there were 100,000 tonnes in the stockpile. The report which he told us earlier had been implemented called for a stockpile of 250,000 tonnes. Can he make the position a bit clearer?

This winter weather was forecast well in advance. It is not as if it suddenly came on us. The Met Office gave us plenty of warning. Does the Secretary of State believe that a grit audit is an adequate response from the Government to the current suffering of motorists forced to sleep freezing in their cars, of train passengers dropped off at stations with no way of being rescued, and of half the population who struggled to get to work and had to turn up late yesterday? Does he believe that the complacent attitude that he has demonstrated today is anywhere near good enough from people who purport to be the Government of this nation?

--- Later in debate ---

[Mr Hammond]

rose—

[Mr Speaker]

Order. I know that the Secretary of State always attempts to respond very comprehensively, but may I appeal to him to do so briefly as well? These are principally Back-Bench occasions; many Members wish to contribute, and brevity is the order of the day.

[Mr Hammond]

I shall attempt to be brief, Mr Speaker, but the hon. Member for Garston and Halewood (Maria Eagle) asked me a good many questions.

I can assure the hon. Lady that there is no complacency whatsoever. I recognise the absolute frustration and, indeed, anger of many people who have been stranded and had their journeys and their lives disrupted over the past 48 hours. Let me repeat, however, that the question is not whether a foot of snow and double-digit negative temperatures create disruption. They will create disruption; they will always create disruption. The question is whether we should or could have done anything differently, and that is what I have asked David Quarmby to consider. As soon as we have the answers to all the very sensible questions asked by the hon. Lady, I will report back to the House.

[Mr Philip Hollobone (Kettering) (Con)]

When it comes to trains and buses, passengers find the weather frustrating, but even more frustrating is often the complete lack of information while they are standing on a cold platform or waiting at a draughty bus stop. What can the Secretary of State do to make sure that senior executives in those largely private companies ensure that information gets to the customers as speedily as possible?

[Mr Hammond]

My hon. Friend is absolutely right. A major part of the problem that we experienced yesterday was lack of information flow. Some train operators have already supplied BlackBerrys to on-train crews so that they can be given real-time updates to advise passengers of what is going on. We must take that process further. The least we ought to be able to do for passengers if they find their journeys disrupted is to give them accurate information about what is going on.

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

The Secretary of State called for a review, but what is he doing to ensure that he can get up-to-date information enabling him to act with urgency? What is the role of regional Government offices in working with local authorities to give him a full and up-to-date picture of what is going on?

[Mr Hammond]

To be clear, I have asked David Quarmby to audit the implementation of the measures that he recommended in his report. Those were not simply about grit. There are recommendations covering a range of areas and modes of transport. We are getting information—not quite in real time, but by 9 o’clock this morning we had a full situation report on rail services and the condition of the strategic road network across the country. The information about what is happening on individual local authorities’ roads is a little more patchy. That issue needs looking at, because the condition of local authority roads can have a knock-on effect on the condition of the strategic road network.

[Jacob Rees-Mogg (North East Somerset) (Con)]

Does the Secretary of State agree that in a country with a generally temperate climate, such things will happen from time to time, that it would be disproportionate to spend too much money preventing them, and that even this Government cannot control the weather?

[Mr Hammond]

My hon. Friend is of course right. The Highways Agency has invested more than £100 million in new equipment for dealing with snow on the strategic highway network, as well as building a large strategic reserve of salt and grit. As I said earlier, clearly the question is not whether we can eliminate disruption when we get such snowfall in the UK. There will always be disruption. The question is whether there are sensible and proportionate measures that we could and should take which will minimise that disruption.

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

Further to the question from the hon. Member for Kettering (Mr Hollobone), may I turn the Minister’s attention to the airports? The airports in the south-east are closed today, yet the public are given no information about the alternatives. The airport authorities knew a week ago that the present weather conditions would happen. Why are we in such a situation in the south-east of England?

[Mr Hammond]

The hon. Gentleman says that the airports in the south of England are closed, but as of a few minutes ago, when I came into the Chamber, that was not my information. My information was that Gatwick was closed, but Heathrow was operating, albeit with delays. The problem, as the hon. Gentleman knows, is that airports have to operate with a primary focus on safety, and when heavy snow is falling it is not possible to operate the runways safely. I gave the figures earlier for the amount of clearance that occurred at Gatwick yesterday. Vast amounts of snow were moved off the runways and taxiways, but the airport is still not able to operate. If there is any measure that could or should have been taken over the past few days that would have kept Gatwick airport open, that is what we need to focus on, but even Geneva airport has been closed this week.

[Martin Vickers (Cleethorpes) (Con)]

All train services into my constituency are currently cancelled. Bearing in mind that the same routes serve the strategically important port of Immingham, through which much of the country’s coal is imported for power stations, can the Secretary of State assure me that improvements will be made to the services?

[Mr Hammond]

I cannot give my hon. Friend any immediate assurance that improvements will be possible on that line. I understand that the problem in that case is drifting snow, and it will take some time to clear the line and reopen it. I can tell him and the House that my right hon. Friend the Secretary of State for Energy and Climate Change has told me that he is confident that coal supplies are adequate and that we need see no interruptions to power supplies as a result of the present cold snap.

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

May I please have some clarification from the Secretary of State? He said earlier that 100,000 tonnes of salt are available in the strategic supply, yet the review recommended that 250,000 tonnes should be in place by the start of the winter season. Will the Secretary of State confirm that he has not fulfilled that recommendation?

[Mr Hammond]

That is one of the questions that the hon. Member for Garston and Halewood (Maria Eagle) asked from the Front Bench. Let me give the exact figures. Local authorities have just under 1 million tonnes of stock for their own use. The Highways Agency has 225,000 tonnes of stock for its own use, and in addition it has ordered 250,000 tonnes for a strategic stockpile, of which 107,000 tonnes have been delivered. The remainder is expected to be delivered over the next six weeks. [Interruption.] The hon. Member for Garston and Halewood says that we have not met the target. It was never intended that the 250,000 tonnes would be used up in the first week of winter. It is going to be perfectly satisfactory to have the 250,000 tonnes delivered progressively during the course of December and into early January. Much of the salt is imported by sea from very distant locations, and we expect to have it all on the ground by early January.

[Greg Hands (Chelsea and Fulham) (Con)]

My right hon. Friend will have noted that the tube system is working relatively well today, but he will also have seen that on Monday there was strike action on what was a very cold day, which caused massive disruption. Will my right hon. Friend join me in condemning those who look to pile on the misery by announcing three-day tube strikes, and those like Ken Livingstone who seek to support these strikes?

[Mr Hammond]

Unlike the Leader of the Opposition, I do believe there is such a thing as an irresponsible strike.

[Vernon Coaker (Gedling) (Lab)]

When the right hon. Gentleman speaks to Mr Quarmby, will he make sure that his review looks not only at strategic routes but at the gritting of local and side roads? Last winter, many of my constituents were trapped in their homes. They were told that that was because the emphasis was on main routes. If they live on hills, for instance, they cannot get out of their homes. Local roads and side roads—and pavements as well—are just as important as some of the big strategic routes.

[Mr Hammond]

I wonder about the hon. Gentleman’s commitment to localism. David Quarmby will be looking at the performance of local authorities, but it is for local authorities to decide on their gritting plan, and most local authorities will not choose to grit every residential side road and every footway. That is a decision for them, and it is for local communities to hold local authorities to account for those decisions. Our job is to make sure that local authorities are doing what they are committed to do on the strategic road network.

[Stephen Metcalfe (South Basildon and East Thurrock) (Con)]

Will my right hon. Friend join me in congratulating all those who, despite the weather, have battled into work to keep our public services open and to negate the effect that this sort of weather can have on our economy?

[Mr Hammond]

I will indeed. It is very tempting at 6.30 am to look out of the window and decide to turn over and forget about it, so those who have battled with the elements and the disruption on the transport system to keep our public services going should be congratulated.

[Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)]

How much of the Highways Agency budget has been, and will be, spent on procuring salt, grit and potash from British suppliers such as Boulby potash mine in my constituency, as opposed to overseas suppliers which the Secretary of State mentioned earlier?

[Mr Hammond]

The point I think the hon. Gentleman is trying to make is simply not valid. The problem last year was that domestic suppliers could not keep up with demand. Local authorities ran down their stocks, in some cases to nil, and during the summer they needed to rebuild those stocks. To have had the Highways Agency trying to build a strategic stockpile in competition with them would have been deeply unhelpful. We took the decision to import the large part of the strategic stockpile, even though that means paying very considerably higher prices, so that local authorities could restock and the strategic stockpile could be built in parallel.

[Dr Thérèse Coffey (Suffolk Coastal) (Con)]

Will the Secretary of State talk to his departmental colleagues, and also to the Prime Minister, about emphasising to people the importance of checking on their neighbours? I acknowledge the work that has been done on ensuring that there is grit, and we have learned the lessons of last winter, but it is essential that we do not forget our communities locally.

[Mr Hammond]

My hon. Friend reminds the House of a very important message. We have talked about people struggling to get to work and wrestling with the transport network, but many people, often the elderly, are stuck in their homes and they may be getting into difficulty—they may be unable to shop, for instance. It is very important that we keep delivering the message that those who are able to get out should check on their neighbours and see if there is anything they can do to help.

[Mr John Spellar (Warley) (Lab)]

The Secretary of State said in his statement that the Department for Transport was taking the lead among Departments, yet in that statement there was not one word about what he or any of his Ministers are doing about this crisis. Is not the reality that he is asleep on the job, and when is he going to get a grip?

[Mr Hammond]

The reality is that the problem on the ground is essentially transport-focused at this stage. Problems in other areas such as the health service are directly related to transport issues, so the Department for Transport has to take the lead. That is what we are doing. We are regularly meeting and communicating with the Highways Agency, train operators and airport operators to monitor the situation; we are doing so on an hourly basis. If it is necessary to convene a meeting of Cobra later today, we will do so.

[Charlie Elphicke (Dover) (Con)]

Is it not right that we congratulate and encourage those people who are currently hard at work up and down the country clearing snow, and is it not also right that good neighbours should be encouraged to clear pavements outside their own homes?

[Mr Hammond]

On my hon. Friend’s last point, I remind the House that the Government published a code of practice on snow clearing on pavements. Members will remember that during the similar events of last winter earlier this year there was some suggestion that individuals were wary of clearing snow from pavements for fear that accidents caused on that stretch of pavement might lead to legal action. I hope we have dealt with that issue.

[Nick Smith (Blaenau Gwent) (Lab)]

On the topic of getting a grip, has the Secretary of State heard anything from local authorities about neighbourhood gritting barns having been filled this year because of the terrible winter we had last year?

[Mr Hammond]

That is, of course, a matter for local authorities. I can tell the hon. Gentleman that one of the big problems with strategically placed roadside bins is that the grit local authorities put in them is often removed without authorisation by people wanting to use it on their private properties. That has been a persistent problem for local authorities.

[Mr Kevin Barron (Rother Valley) (Lab)]

The Secretary of State may have heard the report on the “Today” programme about the dozens of lorry drivers who have spent two nights in the Methodist hall in South Anston in my constituency. The road they are stranded on is the A57. That section of it is a major link road between the A1 and the M1 in south Yorkshire. Can the Transport Secretary urgently find out why it has been allowed to get into a state of such chaos?

[Mr Hammond]

I will check specifically on the situation on the A57 and write to the right hon. Gentleman later today, but I can tell him that generally across the strategic road network, where major problems have occurred the cause has been jack-knifed, broken-down or abandoned vehicles blocking the road so that gritters and snow ploughs cannot get through. In some cases, the problem has been exacerbated by lorry drivers driving in an uncleared third lane of the motorway, often leading to accidents and jack-knifings.

[Stella Creasy (Walthamstow) (Lab/Co-op)]

Many of my constituents in Walthamstow experienced severe difficulties getting into work during last winter’s snow, and I do not share the confidence in the tube system of the hon. Member for Chelsea and Fulham (Greg Hands), because I experienced problems this morning. What discussions has the Secretary of State had with the Mayor of London about how to keep the capital city moving?

[Mr Hammond]

The Highways Agency and the rail directorate within the Department for Transport are in constant contact with Transport for London. TfL has responsibility for strategic roads in London and needs to operate continuously in conjunction with the Highways Agency. My understanding is that the service on the tube network has been pretty good over the last two days. There may be isolated incidents such as that to which the hon. Lady has referred, but on the whole the service has been good.

[Clive Efford (Eltham) (Lab)]

The Secretary of State really must get a grip on this situation. For my constituents, Southeastern Trains provides the main route into London as we do not have access to the London underground. We have no trains running on the service through Eltham this morning, yet people are standing on the platforms and the station concourse because they do not know what is going on. What is the Secretary of State doing to make sure that train operating companies are giving up-to-date information to people who might mistakenly be standing on cold platforms waiting for trains that are never going to turn up?

[Mr Hammond]

I agree with the hon. Gentleman that the lack of information is inexcusable. The Office of Rail Regulation said this morning that it will have its inspectors out on the Southeastern and Southern networks, looking at the information that is being provided and making sure that operators are meeting their obligations under their franchise contracts, and if they are not they will be dealt with according to the provisions in those franchise contracts.

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

Abandoned cars and accidents add to the chaos. I understand that once the temperature goes below minus 7°, the tyres that we use on our cars are no longer appropriate and safe. Is the Secretary of State having discussions with car manufacturers and automobile organisations about encouraging people to change over to winter tyres, as they do on the continent?

[Mr Hammond]

We have looked at the issue, and in fact David Quarmby addressed it. The use of winter tyres—snow tyres or even studded tyres—and snow chains is appropriate where people drive for long periods through the winter on compacted snow; it is not appropriate in the situation, as in the UK, where snow is on the ground for relatively short periods. Winter tyres wear out very quickly on normal road surfaces and cause significant damage to those surfaces, so they would not be appropriate in the UK situation.

[Several hon. Members]

rose—

Oral Answers to Questions

Lord Hammond of Runnymede Excerpts

Thursday 2nd December 2010 Commons Chamber

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

6. What steps he is taking to encourage sustainable local travel.

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

Our commitment to sustainable local travel is evidenced by our decision to establish a £560 million local sustainable transport fund. We will shortly set out the criteria for bidding for the fund, and we will publish a White Paper next month setting out the policy initiatives that we will take forward in supporting local authorities to deliver sustainable local travel.

[Julian Smith]

I thank the Secretary of State for that answer. One of the biggest concerns for many people in rural constituencies such as mine is the future of local bus services. What reassurance can he give to my constituents that the particular needs of rural communities will be truly taken into account in the new funding formula?

[Mr Hammond]

It is not a new funding formula. The local sustainable transport fund is a fund to which local authorities can submit bids, so if they have innovative schemes to support rural bus services they will be able put in bids to the fund. The Minister for Local Transport, my hon. Friend the Member for Lewes (Norman Baker), has been working with bus companies and the Local Government Association over the past few weeks to ensure that the guidance to local authorities on the distribution of funding for concessionary fares does protect rural bus services, and he has achieved a major advance in ensuring that rural bus services are protected.

[Andrew Bridgen]

In a constituency such as mine, which consists of towns and many villages but no railway station, the local bus service is absolutely essential in ensuring that our villages remain vibrant hubs and do not become merely dormitories. Does the Minister have any plans to review the 90% law, whereby the local authority has to provide access to a bus service for only 90% of the population?

[Mr Hammond]

We have no plans to review the rule.

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

Local transport and the bus service, in particular, is essential for many people, and of course it needs to be sustainable, but does the Secretary of State agree that cuts of 20% to the bus service operators grant will not only lead to fewer bus services and higher fares, but push people back into their cars and, therefore, do nothing for sustainability?

[Mr Hammond]

No, I do not. The hon. Lady will recall that prior to the spending review there was a great deal of speculation that the bus service operators grant would be abolished altogether, and the bus service operators warned of significant fare increases and cuts to services if that were to happen. I am pleased to say that we were able to achieve a cut of only 20% in the BSOG, and the operators indicate to us that that should not lead to a loss of services or to significant fare increases.

[Simon Hughes (Bermondsey and Old Southwark) (LD)]

3. What recent discussions he has had with the Mayor of London on the future of the South London line.

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

There have been no recent discussions between the Department for Transport and the Mayor of London regarding the South London line. We are aware that officials from Transport for London have been discussing their plans to mitigate the loss of the South London line service, following its replacement with the new East London line services through Southeastern.

[Simon Hughes]

The Secretary of State’s announcement last week about London Bridge and Thameslink is hugely welcomed by all our communities, but the one qualification, of which he is probably aware, is that it might have an adverse impact on use of the South London line. Will his Department be positive and constructive with the Mayor of London and local authorities to see whether we can resolve the one remaining piece of the jigsaw-problem, so that everybody can be 100% happy—rather than just 90% happy with a little way to go?

[Mr Hammond]

I am aware of the concerns about the loss of the South London line service. As my hon. Friend knows, the Mayor of London asked for the alternative proposal of a Victoria to Bellingham service to be dropped in favour of providing additional financial support to the East London line extension, but I am very happy to talk to my hon. Friend and to other hon. Members who are concerned about the matter to try to ensure the best possible provision of services within the constraints that will exist at London Bridge and Clapham Junction.

[Mr John Spellar (Warley) (Lab)]

May I express my astonishment that the Secretary of State has not had a discussion with the Mayor of London about the chaos on London’s transport and, indeed, throughout the country? Will he tell the Mayor to stop swanning around in Switzerland, get back here and get a grip? When will he and the Minister get a grip on the transport chaos in this country?

[Mr Hammond]

The question was about the South London line and my answer was that I had not had any recent discussions with the Mayor of London on that issue. I do, of course, have regular discussions with the Mayor of London on all sorts of subjects and will continue to do so. I suspect that the right hon. Gentleman is out of touch with the mood of the British public, who are concerned to make the best possible fist of Britain’s bid for the 2018 World cup.

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

4. What steps his Department is taking to promote cycling as a means of transport.

--- Later in debate ---

[Lilian Greenwood (Nottingham South) (Lab)]

5. What recent discussions he has had with local authority leaders on the future of funding for major local authority transport schemes.

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

Officials have written to all relevant local authorities, enclosing the document “Investment in Local Major Transport Schemes”, which was made available to Members of this House on 26 October and which sets out the position on the future funding of major schemes. Detailed discussions are ongoing.

In the longer term, I have made a commitment to consider the options for a much greater devolution of capital budgets and prioritisation decisions for local major schemes and will in due course discuss the best way forward with local authorities and local enterprise partnerships once they are established.

[Lilian Greenwood]

I thank the Secretary of State for that answer. As he knows, there is deep concern about the decision to postpone improvements to the A453 in Nottinghamshire. There is an appetite locally, across all parties, for exploring ways to retrieve the situation, and it has been suggested that a regional growth fund bid could be made to contribute to the cost. Would the Secretary of State welcome such an approach? Will he facilitate the participation of the Highways Agency in assisting local partners to explore such a possibility?

[Mr Hammond]

As the hon. Lady knows, the A453 is a Highways Agency scheme and not, strictly speaking, a local authority major scheme. It is not the kind of scheme that was primarily intended to be a beneficiary of the regional growth fund.

I have written to the hon. Lady on this subject and indicated that we will be looking at Highways Agency schemes that are not currently prioritised for commencement in this spending review period, with a view to identifying those that will be accelerated as first reserves, as it were; inevitably, programmes sometimes slip and there is a requirement for additional schemes. We will be looking at that in the new year.

[Mr Adrian Sanders (Torbay) (LD)]

Would the Secretary of State be willing to meet the local authority leaders of Devon, Torbay and Teignbridge, who are united in wanting to see improvements to the A380—namely, the south Devon link road and a bypass around Kingskerswell?

[Mr Hammond]

I understand that the Under-Secretary of State for Transport, my hon. Friend the Member for Lewes (Norman Baker), has already met local authority leaders in the area. If I could give my hon. Friend the Member for Torbay (Mr Sanders) a piece of advice, it would be that he and his local authority colleagues need to work on the scheme with a view to getting the cost down, so that the total cost-benefit ratio improves. That will make it much more likely that the scheme will be able to be funded from central Government funds.

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

Unlike other spending blocs, the gap between spending in the south-east and the rest of the regions has been increasing over the past 10 years. If there is to be real investment in major schemes in our major regional cities, that gap will have to be closed. What plans does the Secretary of State have to close that gap?

[Mr Hammond]

As the hon. Gentleman will know, the Government have committed themselves to a public consultation in the new year on the High Speed 2 rail scheme. They have allocated £750 million-worth of funding to take that scheme forward during the current spending review period.

That project—a strategic investment project—will more effectively close the gap between north and south and address the issues of differential economic growth rates than any other regional initiative that has been taken in the past couple of decades. I hope that the hon. Gentleman will welcome the commitment that the Government are making to that project, despite strong opposition to it in the southern half of the country.

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

Does the Secretary of State agree that notwithstanding the benefits of high-speed rail, the only way really to improve the north’s economic performance in the here and now is to improve connectivity within the north through projects such as the northern hub? Does he agree that that will require not just Government support, but effective regional strategic planning, which we have not seen so far?

[Mr Hammond]

My hon. Friend has been a passionate advocate of the northern hub since long before his election to the House. He has made the case and continues to make it powerfully. It is a very important project. Network Rail is taking forward work on the northern hub proposal with a view to considering its inclusion in the next financial control period, starting in 2014.

I agree with my hon. Friend. Projects of that nature realise their full potential only if they are properly integrated, with wider regional policies being adopted.

[Paul Blomfield (Sheffield Central) (Lab)]

7. What assessment he has made of the effects of reductions in road safety grants and the ending of Government funding for speed cameras on the number of road traffic (a) accidents and (b) fatalities.

--- Later in debate ---

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

9. What steps he is taking to ensure that the Thameslink project is completed on time.

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

As I confirmed on 25 November, the Thameslink programme will go ahead in full. To improve delivery confidence, we will defer completion of the full programme, allowing 24 trains per hour in each direction, until 2018. This will reduce both cost and risk, particularly in respect of the reconstruction of London Bridge station. Passengers will start to see benefits from December 2011, when works at Blackfriars will be completed, and some 12-car trains will start to run from Bedford through to Brighton.

[Gavin Shuker]

As the Secretary of State will be aware, many of my constituents are struggling to get into work this morning on the existing rolling stock. New rolling stock is therefore vital as part of the Thameslink upgrade. Would he be willing to share the time scales for delivery of such rolling stock and place the information on record in the House?

[Mr Hammond]

It is expected that the new Thameslink rolling stock—1,200 vehicles—will start to be delivered in 2015, and delivery should be completed by 2019.

[Stephen Barclay (North East Cambridgeshire) (Con)]

As part of completing the Thameslink project, will my right hon. Friend ask officials to look at the cost benefit of extending the line beyond Cambridge to include areas such as Ely and Littleport on the way to King’s Lynn, because the service is planned to stop at Cambridge, yet the cost of electrification beyond there would be £60 million to £80 million out of a £5.5 billion overall cost?

[Mr Hammond]

There are no plans to look at further extension of the Thameslink programme during the current control period but, as my hon. Friend will know, the next Network Rail control period begins in 2014, and proposals for infrastructure enhancements to the network beyond 2014 will be looked at and evaluated over the next couple of years.

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

It is apparent that the Thameslink project is essential for the cascading of rolling stock to the north. Can we be assured that that rolling stock will be of good quality and not simply cast-offs from Thameslink? How will the Secretary of State’s statement about delays on Thameslink affect the north getting good-quality rolling stock to relieve overcrowding?

[Mr Hammond]

As the hon. Lady knows, the cascading of rolling stock from First Capital Connect’s existing operations to the north-west depends on the completion of the electrification programme in the north-west, which, as I indicated last week, is expected to be completed in 2016. By that time, rolling stock will have become available, so this does not involve any further delay. In terms of the quality of the stock, it is not, of course, new rolling stock, but it is good quality, with a significant remaining life expectancy.

[Nigel Adams (Selby and Ainsty) (Con)]

11. What plans he has for the future funding for the national station improvement programme and access for all grants.

--- Later in debate ---

[Andrew Selous (South West Bedfordshire) (Con)]

14. What steps he is taking to encourage greater use of low-emission vehicles.

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

Decarbonisation of motor transport is one of my key priorities. The recent spending review announced that the Government have made provision of over £400 million for measures to promote the uptake of ultra-low carbon vehicle technologies. These measures include support for consumer incentives, development of recharging infrastructure, and a programme of research and development work.

[Andrew Selous]

When does my right hon. Friend expect that it will be an economically rational decision for most people to buy a low-emission vehicle?

[Mr Hammond]

I am pleased to tell my hon. Friend that with the benefit of the Government’s consumer incentive of up to £5,000 a vehicle, it will be an eminently rational decision for anyone to start purchasing an electric vehicle from next February, when they appear on the UK’s roads. The cost per kilometre of running an electric vehicle that is charged overnight with cheap-rate electricity will be between 1p and 3p, which compares favourably with the price of petrol.

[Jim Shannon (Strangford) (DUP)]

I thank the Secretary of State for his response. Is he aware of the application that the Department of the Environment and the Department for Regional Development in Northern Ireland have submitted to the Office for Low Emission Vehicles regarding the plugged-in places vehicle initiative, which would promote an infrastructure in Northern Ireland for electric vehicle charging? What is the status of the application, and may I request that he gives it his support?

[Mr Hammond]

We are evaluating the bids that we have received for the second round of the plugged-in places programme and an announcement will be made in the new year.

--- Later in debate ---

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

16. What steps his Department is taking to reduce overcrowding on trains.

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

An additional 650 carriages will be delivered to the rail network between 6 May 2010 and March 2014. In addition, about 600 new carriages for the Crossrail project and up to 1,200 new carriages for the Thameslink programme will be delivered between 2015 and 2019, releasing large amounts of rolling stock for redeployment on other lines to increase capacity.

[Jonathan Reynolds]

I thank the Secretary of State for that answer. The growth in the northern economy over the past 10 to 15 years has heralded a significant rise in rail travel. Passenger growth in my region is set to rise further still, and that is particularly the case in constituencies such as mine that lie on or near the edge of major conurbations. In light of that, and following on from his response to the hon. Member for Blackpool North and Cleveleys (Paul Maynard), what assessment has he made of the benefits that the northern hub could bring to the northern economy by relieving overcrowding and putting in place faster and more frequent trains?

[Mr Hammond]

As I said in response to my hon. Friend the Member for Blackpool North and Cleveleys (Paul Maynard), the northern hub is an interesting and potentially valuable project. Network Rail is evaluating the project, but until we have a proper engineering scheme with a cost attached, it is clearly impossible to carry out a robust cost-benefit analysis. Once we are in a position to produce that, we will be able to examine the scheme properly for prioritisation in the control period 5 investment programme.

[Simon Kirby (Brighton, Kemptown) (Con)]

Is the Secretary of State aware that—with the possible exception of today—trains from Brighton to Victoria are often very overcrowded?

[Mr Hammond]

Yes, of course I am. The Thameslink project will deliver relief on lines across London from north to south and to Brighton, and will hopefully relieve part of the problem on the Brighton-Victoria line to which my hon. Friend refers.

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

Does the Secretary of State agree that electrifying the Great Western main line would be one way of increasing capacity, especially in south Wales?

[Mr Hammond]

I do not believe that electrification will deliver increased capacity; there is capacity on the main line now. I told the House last week that we will work with the Welsh Assembly Government to build and validate the business case for electrification of the Great Western main line into south Wales. I spoke to the Deputy First Minister late last week, and such work between officials in the two Governments is now ongoing.

[Joseph Johnson (Orpington) (Con)]

Will the Minister undertake a review of overcrowding and value for money in general on commuter trains run by Southeastern to Orpington, which, uniquely in the country, has been saddled with a retail prices index regime of RPI plus 3 over recent years?

[Mr Hammond]

The faster rate of fare increases on Southeastern is, as my hon. Friend knows, related to the introduction of the high-speed Javelin trains, which have managed to continue running very effectively during the current period of weather disruption. We are reviewing value for money on the rail network as a whole. Sir Roy McNulty is conducting that review, and I will publish his interim findings shortly, and a final report in April next year.

[John Mann (Bassetlaw) (Lab)]

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

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

Since I last answered Transport Questions, I have confirmed that Thameslink will go ahead in its entirety and announced £900 million-worth of rail electrification projects and 2,100 new rail carriages. I have also announced the sale of a 30-year concession on High Speed 1 for £2.1 billion.

[John Mann]

Since the last Transport questions, I have corrected the Minister with responsibility for roads: there have been 27 collisions at Elkesley on the A1 in the past five years. When will the Minister press the button to start this scheme, which is designed and ready to go, so that we can save lives by building the bridge at Elkesley?

[Mr Hammond]

The hon. Gentleman knows that road schemes are evaluated on a cost-benefit basis. Accident figures are one of the factors taken into account and built into the analysis, but we will always look at the cost-benefit analysis—the overall benefits that the scheme will bring, compared with the costs—and all schemes have to be looked at fairly and objectively in the light of the limited funding available.

[Tony Baldry (Banbury) (Con)]

T2. Prodrive is one of the most cutting-edge and significant companies in my constituency. It does excellent work on automotive engineering, including producing a new generation of Mini rally car. What are the Government going to do to make it easier for rallying to take place on roads in the UK?

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

The winter resilience review commissioned by the previous Government has produced its final report and recommendations, yet the country is in chaos, with passengers forced to sleep at stations, freezing all night on broken-down trains or getting trapped in their cars, all at a cost to the economy of up to £1.2 billion a day. Why are not the findings of the review being implemented? The public do not want the Secretary of State to announce another review by the person who has already set out the blueprint for improvements. They want him to get on and implement the recommendations and improvements. When is the Secretary of State going to get a grip?

[Mr Hammond]

First of all, the hon. Lady fails to recognise the scale of the weather event that is occurring. It involves a significantly bigger snowfall than the one that occurred earlier this year, which gave rise to the events that caused my predecessor to commission the review. The findings and recommendations of the review have been implemented, and I have asked David Quarmby to come back and audit their implementation so that we can see the extent to which they have been consistently implemented and whether there are any lessons that we can learn from the last few days. I hope that the hon. Lady will support that approach.

[Robert Halfon (Harlow) (Con)]

T4. Thousands of my Harlow commuters have been braving the weather to travel on the Harlow to London rail line. They have suffered a 30% increase in train overcrowding in recent years. Will the Minister look at the economic benefits of upgrading the West Anglia main line?

[Mr Hammond]

As my hon. Friend will know, 176 additional carriages are due to be delivered to the Greater Anglia franchise next year. That will assist with overcrowding overall. In regard to the upgrading of the line, I have said in response to other questions today that we are prepared to look at proposals for further network enhancements as possible investments for control period 5, which begins in 2014.

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

Is the Secretary of State aware that the answer given just a few minutes ago by the road safety Minister is probably the worst answer I have heard in this House in 31 years? Professor Richard Allsop, an acknowledged world expert on transport safety, says that 800 people will die because of the Government’s policy on speed cameras. Is the Secretary of State going to just sit there and let that happen?

[Mr Hammond]

No, and I completely reject the analysis. As the Under-Secretary of State for Transport, my hon. Friend the Member for Hemel Hempstead (Mike Penning), has said, speed cameras are useful additions to the road safety armoury in some locations. It is for local authorities to decide whether they wish to continue with speed camera operation. I hope that they will act responsibly and carefully in making those decisions.

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

T5. The Secretary of State is right to consider the introduction of automatic number plate recognition technology at the Dartford crossing to ease congestion. Given that the crossing makes some £45 million a year, would it not be better to consider the effect of how the new technology improves congestion before increasing toll charges to help fund a new crossing?

[Clive Efford (Eltham) (Lab)]

In the Secretary of State’s response to the resilience review, he stated that he was dissatisfied with previous performance and the level of disruption and that it would be sorted in time for this winter. What went wrong? His response just now was not good enough. It is not good enough just to say that there has been a bit extra snow.

[Mr Hammond]

Let me make this clear: when we have extremely heavy snow and extremely low temperatures, there will be disruption to the transport system. The question is not about whether there is disruption. The question we now have to ask is whether anything could or should have been done that was not done. If there is anything, we will learn the lessons from that.

In the events earlier this year, the problem was that local authorities and the Highways Agency had inadequate supplies of salt and grit. We have more than adequate supplies of salt and grit and we have new equipment out on the strategic road network. Six runs per day across the strategic road network have been going on over the past 48 hours. The strategic road network, with one or two specific exceptions, is open and operating today.

[David Rutley (Macclesfield) (Con)]

T7. Will my right hon. Friend tell the House when he will be able to give further details on any impact the extension of High Speed 2 to Manchester will have on existing rail services, including those from Manchester to Euston, which make an important stop at Macclesfield?

[Mr Hammond]

My hon. Friend is right to observe that the introduction of HS 2 services in 2025 will of course change the nature of operations on the west coast main line. It will create additional capacity on that line and provide the opportunity for more trains that stop at more places, which is one of the demands that we regularly receive, and it will also create the opportunity for more freight paths and thus more transfer of freight from road to rail. The precise detail of service patterns will have to be decided when the franchise for west coast main line post-2025 is let.

[Mr Dennis Skinner (Bolsover) (Lab)]

Instead of all these reviews about the weather, why does not the Secretary of State get on the phone to the Tory councils in Nottinghamshire and Derbyshire and tell them to get the gritters out?

[Mr Hammond]

I can tell the hon. Gentleman that gritters on the strategic road network, which are operated by the Highways Agency, have been out and have been carrying out the planned number of gritting runs.

[Mr Skinner]

I am talking about villages.

[Mr Hammond]

The hon. Gentleman says he is talking about villages. One thing I have asked David Quarmby to do is to consider the response of local authorities, whether they have uniformly implemented the recommendations in his review, which reported earlier this year, and what lessons have to be learned. I shall make public David Quarmby’s findings, which we expect to receive in a couple of weeks’ time.

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

May I urge the Secretary of State to ignore today’s report from the Select Committee on Transport on the North review in the same way as the report ignored conclusive evidence that reducing the drink-drive limit would save lives? Instead, will he bring forward proposals to reduce the drink-drive limit from 80 mg to 50 mg?

[Mr Hammond]

I have not seen the conclusive evidence that the hon. Gentleman speaks of, but I have seen various opinions in this area. I have not yet read the Transport Committee’s report but I have to say to him that I am a little surprised to hear him, as a member of that Committee, urging me to ignore its report and findings. Part of our democratic process is to have our debates in the Committees and to get behind their findings and reports when they are published.

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

Can the Secretary of State update the House on progress following the consultation on the safety at street works and road works code of practice? More than 500,000 people are working on the highways unprotected, and we need new legislation to be able to get new jobs, which could be based in areas outside the south-east.

Rail Investment

Lord Hammond of Runnymede Excerpts

Thursday 25th November 2010 Written Statements

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

This statement sets out the Government’s plans for investment in rail infrastructure and rolling stock. It builds on the announcement by the Chancellor of the Exchequer of the outcome of the spending review.



Over the next four years, we will provide £14 billion of funding to Network Rail to support capital maintenance and infrastructure investment; and £750 million for high speed rail. We will also fund the Crossrail project, the tube upgrade programme, light rail projects in Birmingham, Tyneside, Nottingham and Sheffield; and provide additional funding to franchisees for extra rolling stock.

Today, I can confirm we will fund and deliver the Thameslink programme in its entirety, virtually doubling the number of north-south trains running through central London at peak times. But the original programme for the rebuilding of London Bridge was always ambitious, with substantial risks around delivery, and operation of existing services, during construction. To reduce these risks, we have re-profiled the delivery of the programme to achieve completion in 2018. This will enable Network Rail to make further efficiencies to their design and delivery programme.

As part of the Thameslink programme, we will procure a new fleet of trains—up to 1,200 new carriages. This is in addition to around 600 new carriages which will be provided for the Crossrail project. The new Thameslink and Crossrail rolling stock will enable the redeployment of hundreds of serviceable electric carriages currently used on Thameslink services. These carriages belong to rolling-stock leasing companies, but we expect they will be available at competitive leasing prices for re-use elsewhere, thus justifying further electrification of our network.

As a first step. Network Rail will electrify the commuter services on the great western main line from London to Didcot, Oxford and Newbury over the next six years. Electric trains will speed up journeys, improve reliability and reduce the impact on the environment. Network Rail will also electrify the lines between Liverpool, Manchester, Preston and Blackpool—an investment of up to £300 million. Work is expected to begin next year and to be finished in 2016. As with Thameslink, we expect Network Rail to keep a tight rein on costs.

The redeployment of electric rolling stock to these routes will, in turn, free up hundreds of diesel units which will be available to train operators to lease as they become available in the period after 2015.

I can also today confirm that an additional 650 carriages will have been delivered to the network between 6 May 2010 and March 2014. This is in addition to the Thameslink and Crossrail carriages I have already mentioned.

We have funding confirmed for developments at Reading, Birmingham, London Kings Cross and Gatwick Airport. In addition, investments on the east coast main line and midland main line and improvements in Yorkshire, on trans-Pennine routes, around Manchester and in South Wales will improve line speed, reliability and capacity of services.

Beyond these investments in the commuter railway, there are far-reaching decisions to be made about intercity services. The Intercity Express programme, launched by the previous Government, identified the Agility Trains consortium as preferred bidder to build a new fleet of intercity trains. This February, my predecessors invited Sir Andrew Foster, to provide an independent assessment of the programme. Sir Andrew recommended work on the Agility Trains proposal and a detailed study of the alternatives. Following this work, the four options Sir Andrew identified, have been narrowed down to two. I have ruled out the option of requiring passengers to interchange from electric to diesel trains, recognising the value to passengers of preserving through-journeys. I have also ruled out the option of a wholesale refurbishment of the existing diesel “Intercity 125” fleet, some of which dates back to the 1970s.

The remaining options are, on the one hand a revised, lower-cost Agility Trains proposal, which envisages a mixed fleet: some all-electric trains, and some electric trains which are also equipped with under-floor diesel engines. And on the other, a fleet of new all-electric trains which could be coupled to new diesel locomotives where the overhead electric power lines end. Both these options would allow us to preserve through-journeys between London and parts of the rail network which are not electrified. Both of them would deliver faster journey times. For example, we expect to see a time saving of at least 15 minutes, for the journey between Cardiff and London bringing it below two hours.

This is a major decision which will affect intercity rail travel for decades, and we must get it right. To address outstanding issues on choice of train type and further electrification on the great western main line, additional work will be required within the Department, with Agility Trains, and with the Welsh Assembly Government on the business case for electrification into Wales. I expect to announce a final decision on IEP, and on further great western electrification, in the new year.

This package I have announced today has only been possible because this Government have been prepared to take the tough decisions to protect investment in Britain’s future. I will make a further oral statement to the House on the issues raised in this statement later today.

Rail Investment

Lord Hammond of Runnymede Excerpts

Thursday 25th November 2010 Commons Chamber

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

With permission, Mr Speaker, I should like to make a statement on the Government’s plans for investment in rail infrastructure and rolling stock.

These plans build on the announcement by my right hon. Friend the Chancellor of the Exchequer of the outcome of the spending review. As we have consistently said, tackling the deficit is our top priority, and by taking the tough decisions on current spending we are able to secure our future growth by making vital infrastructure investments. Over the next four years, we will provide £14 billion of funding to Network Rail to support capital maintenance and infrastructure investment, and £750 million for high-speed rail. We will also fund the Crossrail project, the tube upgrade programme and light rail projects in Birmingham, Tyneside, Nottingham and Sheffield, and provide additional funding to franchisees for extra rolling stock.

I can also confirm today that we will fund and deliver the Thameslink programme in its entirety, virtually doubling the number of north-south trains running through central London at peak times. This huge investment will link Sussex, Kent and Surrey, through central London, with Hertfordshire, Bedfordshire and Cambridgeshire. But the original programme for the rebuilding of London Bridge station to increase through-running as part of this project was always ambitious, with substantial risks in respect of delivery and operation of existing services during construction. To reduce these risks, we have re-profiled the delivery of the programme to achieve completion in 2018. This will enable Network Rail to make the further efficiencies in the design and delivery of the programme that we require to ensure value for money. Passengers will start to benefit from incremental improvements on the Thameslink routes from the end of 2011. As part of the Thameslink programme, we will procure a new fleet of trains—up to 1,200 new carriages. That is in addition to about 600 new carriages that will be provided for the Crossrail project.

Together with the tube upgrades, these projects represent a step change in rail capacity in London, providing a significant boost to economic growth potential in the capital. New Thameslink and Crossrail rolling stock will enable the redeployment of hundreds of serviceable electric carriages currently used on Thameslink services. These carriages belong to rolling stock leasing companies, but we expect they will be available at competitive leasing prices for re-use elsewhere, thus justifying further electrification of our network.

As a first step, I can announce today that Network Rail will electrify the commuter services on the great western main line from London to Didcot, Oxford and Newbury over the next six years. Electric trains will speed up journeys, improve reliability and reduce the impact on the environment on these busy routes.

The Chancellor also announced on 20 October the electrification of the lines between Liverpool, Manchester, Preston and Blackpool, representing an investment of up to £300 million. I expect work in the north-west to begin next year and to be completed at about the same time as work on the Thames valley commuter lines, in 2016. Some sections will be completed well ahead of this, notably Manchester to Newton-le-Willows in late-2013, allowing new electric trains to operate from Manchester to Scotland. As with Thameslink, we will require Network Rail to keep a tight rein on costs. The redeployment of electric rolling stock to these routes will, in turn, free up hundreds of diesel units, which will be available to train operators to lease as they become available in the period after 2015.

This will all be welcome news to passengers. The Public Accounts Committee recently found that many services are unacceptably overcrowded, and I understand the frustrations of rail travellers who have to travel on packed trains. More investment is clearly needed. That is why I argued for additional rail investment in the spending review, and it is also why I have taken the difficult decision to allow regulated fares to rise by 3% above inflation for the three years from 2012, to help us pay for these investments.

In January 2008, the previous Government published a plan to bring 1,300 additional carriages into service by March 2014. That plan was never deliverable. In total, only 206 of the 1,300 carriages had entered service by May this year. My predecessors quoted a grand total of rail carriages, but never referred publicly to the fact that delivery of that total was subject to so many caveats and qualifications as to render it effectively meaningless. According to their published plan, the 1,300 was not fixed and subject to

“value for money, affordability…linkages with other interventions or with other rail projects…infrastructure constraints…supply chain constraints”

and “credibility”. The document went on to say that

“the final outcome could well be different”.

In other words, it was not so much a plan as a press release.

So let me set the record straight. I can today confirm that an additional 650 carriages will have been delivered to the network between 6 May 2010 and March 2014. That is in addition to the Thameslink and Crossrail carriages I have already mentioned.

But it is not just about rolling stock. Network Rail has already started work on station improvements, with funding confirmed for developments at Reading, Birmingham, London King’s Cross and Gatwick airport. Investments on the east coast main line and midland main line and improvements in Yorkshire, on trans-Pennine routes, around Manchester and in south Wales will improve line speed, reliability and capacity of services.

Beyond these investments, there are far-reaching decisions to be made about inter-city services. In February 2009 the intercity express programme, launched by the previous Government, identified the Agility Trains consortium as preferred bidder to build a new fleet of inter-city trains. Then, this February, my predecessor invited Sir Andrew Foster, former head of the Audit Commission, to provide an independent assessment of the programme. Sir Andrew presented his report to me at the end of June, recommending further work on the Agility Trains proposal and a detailed study of the alternatives. I can now tell the House that we have narrowed down the options, from the four Sir Andrew identified to two. I have ruled out the option of requiring passengers to change from electric to diesel trains at a point in their journeys, recognising the value to passengers of preserving through-journeys. I have also ruled out the option of a wholesale refurbishment of the existing diesel InterCity 125 fleet, some of which dates back to the 1970s.

The remaining options are, on the one hand, a revised, lower cost proposal from Agility Trains envisaging a mixed fleet of some all-electric trains and some electric trains equipped with under-floor diesel generators, and on the other hand, a fleet of new all-electric trains which could be coupled to new diesel locomotives where the overhead electric power lines end. Both of these options would allow us to preserve through-journeys between London and parts of the rail network which are not electrified. Both of them would deliver faster journey times too. For example, we expect to see time savings of at least 15 minutes for the journey between Cardiff and London, bringing it below 2 hours. This is a major decision that will affect inter-city rail travel for decades to come, and we must get it right.

To address the outstanding issues on choice of train type and further electrification on the great western main line, additional work will be required within the Department, with Agility Trains, and with the Welsh Assembly Government on the business case for electrification into Wales. When this work, and discussions with the Welsh Assembly Government and my right hon. Friend the Secretary of State for Wales, has concluded, I expect to announce a final decision on the IEP and on further great western electrification in the new year.

The package I have confirmed today has been possible only because this Government have been prepared to take the tough decisions to protect investment in Britain’s future. This is a commitment to our railways that will benefit Britain for generations to come, and I commend the statement to the House.

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

I thank the right hon. Gentleman for early sight of his much-delayed statement. We first read the details of the statement in the Sunday papers three weeks ago, we read them again two weeks ago and we saw much more detail in the press this morning. I know that he tabled this statement as a written ministerial statement today so that he could get away with spinning it on the “Today” programme, but his whole handling of this announcement is an insult to this House, which should be the first to hear about major Government policy decisions, not the last.

Despite all the spin and the re-announcing of decisions taken by the previous Government, many passengers will be bitterly disappointed by the right hon. Gentleman’s announcement today, because it amounts to delaying investment but bringing forward massive fare hikes. The real losers of today’s statement are commuters, who already suffer some of the highest fares in Europe and the worst overcrowding. Because of the cuts he has had to make to his budget, their fares will rise by 3% above inflation from next year and they now face waits of up to a decade for the new trains that will ease overcrowding and speed up journeys.

The statement delays the completion of Thameslink by two years to 2018, following the right hon. Gentleman’s previous decision to delay the completion of Crossrail by a year. His Department is already missing its targets for extra spaces by 15% at peak time in London and 33% in other major cities. Does he not understand the frustration there will be at his decision to delay the delivery of the new carriages that are vital to addressing this overcrowding?

On new carriages, the right hon. Gentleman tries to claim that the plans that Labour announced in government for 1,300 carriages were somehow a work of fiction. Perhaps I could remind him that his permanent secretary told the Public Accounts Committee in September that

“it was a commitment of the previous Government to deliver 1,300 carriages, for which they had a £1.2 billion budget.”

He made it clear that

“we had plans—clear plans—that we could evidence to the National Audit Office…to have acquired around 950 carriages and spent around £900 million.”

He also said that he had plans in place that

“would enable us to get to probably around 1,300 carriages and to develop the full capacity, using the full budget of £1.2 billion.”

Will the right hon. Gentleman now accept that he has cut the number of new carriages that we planned to be delivered in this spending review period, and that he must stop spinning? Why are commuters going to face overcrowding, which will not be substantially alleviated for almost 10 years, when the fares hikes that he says are to end overcrowding start this January?

People in Wales will feel most betrayed by the right hon. Gentleman’s announcement, following his decision to delay giving the green light to electrification of the great western line beyond Bristol. His manifesto was very clear on this, so let me remind him that it said:

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

Perhaps no Welsh MP was in the room during the coalition negotiations, because that commitment was subsequently downgraded to a general statement of support for

“further electrification of the rail network.”

Today, we see why: it was because there was clearly never a commitment to Wales.

We are told that the Secretary of State for Wales is threatening to resign if high-speed rail goes through her English constituency. She does not seem to be threatening to resign over the fact that Wales, whose interests she represents in the Cabinet and is supposed to champion, is to remain the only European country other than Albania and Moldova with not a single metre of electrified track. Will the right hon. Gentleman reconsider his decision not to approve the electrification of the great western main line to Swansea, as was planned by the previous Labour Government?

The right hon. Gentleman has also today ducked giving the green light to the intercity express programme. We are used to this Government going back on things they promised to do in their manifesto, but today’s statement sees him going back even on what he promised in his Department’s comprehensive spending review statement this October. I remind him that he said:

“Because aspects of Thameslink and HLOS rolling stock programmes, as well as projects to electrify the Great Western Mainline, and the rail routes around Manchester and Liverpool, are interdependent with the IEP decision, a full announcement on all these programmes will be made at the same time.”

Will he tell the House what has changed? Will he now tell us the real story behind the repeated delays to today’s statement and the real reason he has had to push so many of his decisions into next year? Is it true, as some believe, that by changing the specification of the IEP carriages after a preferred bidder was announced he now risks a legal challenge from other bidders?

Finally, does the right hon. Gentleman understand the anger felt by passengers up and down the country at his decision to allow rail fares to rise by such a large amount? His coalition agreement said:

“We are committed to fair pricing for rail travel”.

Can he tell hard-pressed commuters up and down the country why he thinks that allowing rail fares to rise by 3% above inflation after next year demonstrates his commitment to fair pricing? How does driving people off the railways and back into their cars help either our economy or the environment? Does he accept, as his Department has admitted, the very big impact on road congestion that is likely to be caused by his decision?

Is not the reality that he has come to the House today only because he said in his departmental plan that he would do so by the end of November 2010 and because his repeated briefings to the media have created an expectation that a statement was imminent? Does he not accept that his departmental plan commits him not to a statement, but to decisions? Has he today not just missed the first of his own targets in the departmental plan, which was supposed to be the Prime Minister’s way of keeping Secretaries of State on track to deliver Government promises?

Is not the reality of today’s statement that beyond re-announcing a whole series of investment decisions taken by the previous Labour Government and put on hold by him after the election, he has delayed the completion of Crossrail by a year, delayed the completion of Thameslink by two years to 2018, delayed giving the green light to electrification of the great western line beyond Bristol—that is a real betrayal of people in Wales—delayed giving any indication of when electrification of the midland main line will take place and delayed giving the green light to the intercity express programme? His statement pushes the delivery of projects into the next spending review period and ducks decisions on some of the country’s most vital transport infrastructure projects. His delayed statement is itself nothing more than one long series of delays.

[Mr Hammond]

In her second response to me at the Dispatch Box, the hon. Lady adopts a rather churlish tone. She talks about wanting decisions to be made. She will get decisions from this Government, but they will be properly thought through decisions based on value-for-money cases and proper consideration of all the matters that need to be dealt with; they will not be press releases made up on the spur of the moment by a Government who have gone on a regional junket and need something to announce to keep the regional press happy.

The hon. Lady complains that we issued a written ministerial statement this morning, but she ought to be able to understand that the content of this statement, because it touches, in particular, on the procurement of the intercity express programme, is market sensitive, so it was essential that we made a statement this morning before the markets opened.

The hon. Lady talks about fares, and I readily acknowledge that nobody in the commuter fraternity will welcome the increase in the cap on regulated fares that we have proposed for 2012 to 2015. But that is one of the tough decisions that we have had to take to protect the programme of investment in our railways. I have to say to her that I see no sign that anybody on the Opposition Front Bench is prepared to take tough decisions or to understand that without the ability and the willingness to do so they will simply have no credibility in the difficult debates on how we prioritise limited public expenditure.

The hon. Lady criticises the delay in delivering the complete Thameslink project—the 24 trains an hour in both directions. I do not apologise to her or to the House for taking a decision that the programme, as originally set out, contained too many risks—there were risks of cost overruns and risks to existing commuter services into London Bridge station. With Network Rail, we have revised the schedule to create a lower-risk alternative that is both less costly and less disruptive to existing commuter services.

The hon. Lady talks about the midland main line—she seems to have discovered it this morning. There was not a word about the electrification of the midland main line during the 13 years for which the Opposition were in government, but today she wants to bring it up as though it were some Labour priority we are abandoning. For the record, the case for electrification of the midland main line remains strong and we will consider it as a project for control period 5, which begins in 2014.

The hon. Lady attacks me for describing the 1,300 rail carriages to which her predecessors apparently committed as a work of fiction. She is new to the job, I understand, and these are difficult numbers—[Interruption.] I am quite new to this, too, and I can tell the House that they are difficult numbers. If she drills down and has a look, she will see that the figure of 1,300 was maintained early this year only by the inclusion of 400 of the 1,200 Thameslink carriages in the total—a complete and ongoing fabrication to avoid abandoning a number that was never sustainable. The Opposition could not have delivered them because they are not prepared to support any of the decisions that have allowed capital investment to continue. They do not support the fare increase, they do not support cuts in welfare expenditure and they do not support cuts in public expenditure to allow prioritisation of capital investment.

The hon. Lady has the audacity to raise the issue of Wales, but, as she says, Wales has not one metre of electrified railway—after 13 years of a Labour Government. We will take no lectures from her on electrification in Wales.

[Several hon. Members]

rose—

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

Will my right hon. Friend assure me that he will ensure that the design of the new franchise for Greater Anglia will maximise the incentive to the successful bidder to contribute to investment in track so that passengers on the West Anglia line and the Great Eastern line will get the advantages from such investment as he has outlined in his statement today?

[Mr Hammond]

I can assure my right hon. Friend that in re-designing the franchise arrangements, as we have committed to do, we will want to consider the opportunities for train operators to contribute to infrastructure improvements and to work more closely with Network Rail. We will also ensure that train operators’ financial interests are clearly aligned with passengers’ interests so that, under new franchises, when we have an overcrowding problem it will be in the train operator’s interest to deal with that problem with its own money rather than, as under the current system, having to come to the Government cap in hand to ask us to solve the problem.

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

I have a direct question for the right hon. Gentleman. Will the outcome of the further long-grass review that he is considering for south Wales, Bristol and the whole line to London deliver rail electrification all the way to Swansea—not to Bristol, but to Swansea? In the run-up to the election in May, all parties stood on a platform of delivering rail electrification all the way to Swansea. The Secretary of State for Wales, the right hon. Member for Chesham and Amersham (Mrs Gillan), has made a principled point on behalf of her constituents, saying that it is a resigning matter if a different link goes through her constituency. Will she apply the same principle if she fails to deliver rail electrification into Wales?

[Mr Hammond]

I can answer the hon. Gentleman’s question to me, but I cannot answer for my right hon. Friend the Secretary of State for Wales; he will have to address his question to her in person. There has to be a business case for electrification. We will work with the Welsh Assembly Government to strengthen and build that business case over the next few weeks and I shall make an announcement to the House as soon as we have made a decision on the IEP procurement that will cover both IEP and further electrification on the great western main line.

[Simon Hughes (Bermondsey and Old Southwark) (LD)]

I welcome the Secretary of State’s announcement that what was originally called Thameslink 2000 by the previous Government will at last be delivered by this Government. Will the Secretary of State also direct those responsible to ensure not only that we have the new London Bridge station in my constituency, and all that goes with it, but that the maximum number of commuter lines are continued in south London? That is obviously of interest to people who live in London as well as those who live further afield.

[Mr Hammond]

I thank my hon. Friend for that question. He is quite right to observe that we must get the balance right between building large new infrastructure projects and maintaining existing services. I have been out this morning to the site of the Blackfriars station development and seen just how incredibly difficult it is to build such a major project on a running railway line with trains passing backwards and forwards. It is very complex, and allowing a little extra time will ensure that we do not have catastrophic disruption during the programme.

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

I welcome the news of investment in rail, although I am concerned about the three-year delay in the electrification of the Liverpool-Manchester-Blackpool line as well as the uncertainties on electrification of the great western line. Will the Secretary of State explain the percentage growth in rail that he is planning within these figures so that rail can grow without overcrowding and without the overpricing that drives people off the railways?

[Mr Hammond]

I do not know where the hon. Lady gets the idea about three years’ delay with north-west electrification. As I said, the Manchester to Newton-le-Willows section will be completed in 2013. Work will start next year. The team that is doing the work will then roll on to complete the electrification of the Liverpool-Manchester section and finally the Preston-Blackpool section. It will all be completed by 2016.

Let me explain the time scale. Electrification will allow the electric carriages released by the delivery of the new Thameslink carriages to be deployed. There is no point completing that electrification, except for the section from Manchester to Newton-le-Willows, until those electric carriages are available. The timetabling is perfectly logical and the early completion of Manchester to Newton-le-Willows will allow brand-new electric trains to be operated on the Manchester to Scotland routes.

The hon. Lady asked about capacity. The total announcements on Crossrail, Thameslink and the additional 650 carriages to be delivered before 2015 will amount to a 17% increase in the capacity of the network.

[Henry Smith (Crawley) (Con)]

Commuters in my constituency, particularly those who use Three Bridges and Gatwick stations, will greatly welcome—as do I—the announcement about increased rolling stock through Thameslink. Will my right hon. Friend assure my commuters and constituents that the rolling stock will be of the highest available quality to ensure greater comfort and convenience?

[Mr Hammond]

The trains deployed on the Thameslink route will be brand-new trains with 1,200 brand-new carriages.

[Mr Mike Weir (Angus) (SNP)]

The Secretary of State’s statement is the fourth time that the desperately needed new trains for the east coast line have been delayed. Will he tell us what he means by “in the new year”? What time scale is he talking about? Will he go for the dual-fuel trains?

[Mr Hammond]

The bi-mode trains are one option that we will consider. Let me explain again the reasons for the complexity and the delay. We have a preferred bidder, selected by the previous Government. That preferred bidder, Agility Trains, has come back to us with a revised proposal that is significantly more attractive than the original proposal. We have been asked by Sir Andrew Foster’s review to reappraise the Agility Trains bid and to consider specific alternatives. We are carrying out that work. There are technical complexities and legal complexities, because of the procurement process. Of course, we must build a value-for-money case and compare the two options. I hope that it will be possible to make an announcement in January, and I expect it to be made early in the new year.

[Steve Baker (Wycombe) (Con)]

I welcome the Government’s sincere commitment to the economic renewal of the north, but what does my right hon. Friend say to people in Buckinghamshire who challenge both the route and the national interest case for high-speed rail?

[Mr Hammond]

I say to them that they will have an opportunity to make their case when we go to consultation on a preferred route in the new year.

[Chris Bryant (Rhondda) (Lab)]

Every analysis of the south Wales economy and its competitiveness shows that the single most important thing that could be done to improve the competitiveness not only of Cardiff, Swansea and Newport but all the valleys communities is the electrification of the line all the way to Swansea. Is there not therefore a strong business case, if one really believes in growth in the economy, for making sure that electrification goes ahead as soon as possible?

[Mr Hammond]

That is precisely what we will be looking at working with the Welsh Assembly Government to achieve—a strong business case. The hon. Gentleman might reflect on what he did in the years that he sat on the Government Front Bench when not a single metre of railway line was electrified in Wales.

[Stuart Andrew (Pudsey) (Con)]

I welcome this announcement and I thank my right hon. Friend for delivering an honest assessment of what is achievable. Will he confirm that improvements to Yorkshire and trans-Pennine routes will include upgrades to carriages and increased numbers to improve the journeys of the hard-pressed commuters who have suffered badly thanks to the neglect of the Labour party?

[Mr Hammond]

We expect that additional carriages will be delivered to the northern and trans-Pennine franchises, but my hon. Friend will understand that these are commercial matters and that we have to enter negotiations with the franchisees as single-tender actions. We have to negotiate with them on the reimbursements they envisage for operating those additional carriages, so it is not possible to give him a precise number today because that would remove our negotiating power in the franchise discussions.

[Kelvin Hopkins (Luton North) (Lab)]

Thousands of my constituents travel every day by Thameslink, as do I. The Secretary of State has disappointingly delayed this scheme by two years, euphemistically describing the delay as “reprofiling”. He has specifically mentioned London Bridge, but what about Blackfriars, which he and I have visited? Will he at least confirm that the Blackfriars interchange with the Circle line will be completed on time and will not be delayed?

[Mr Hammond]

My understanding is that, yes, the station’s new interchange with the Circle line will be completed by the end of next year and that 12-car train-running through Blackfriars will begin at that time. His constituents will see the first tangible benefits from the Thameslink project at that time.

[Mr Charles Kennedy (Ross, Skye and Lochaber) (LD)]

I welcome the encouraging implications of the Secretary of State’s statement for the maintenance of through-direct links from the north of Scotland to the London metropolis, particularly for the Highland Chieftain—his Department accepted the well-backed petition of The Inverness Courier on that. What is his prognosis for overnight services—the sleeping-car rolling stock—between the Scottish cities, plus Fort William, and London? They are long overdue and much needed.

[Mr Hammond]

It is for train operators to decide which specific services to offer on those routes, but the decision we take on IEP will define the type of rolling stock that is available to operate those services. I would be happy to discuss off-wire services north of Edinburgh with him if that would help.

[Julie Hilling (Bolton West) (Lab)]

When will electrification of the Manchester-Chorley-Preston part of the line, which runs right through my constituency, take place? It seems to be missing each time there is a statement.

[Mr Hammond]

The hon. Lady tests my geography of the north-west. If she is referring to the cord that passes from Manchester to Newton-le-Willows, rejoining the west coast main line, that will be in 2013. The rest of the electrification programme will be rolled out between 2013 and 2016.

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

I welcome the Secretary of State’s whittling down of the options for the great western railway, but we in Swindon are waiting anxiously on the platform for a final decision on the electrification of the main line. May I urge him to make a decision that will benefit Swindon and the west country—in favour of electrification—and hold him to his promise to make a decision early in the new year?

[Mr Hammond]

As I have already said, that is my expectation, but, as hon. Members will understand, when complex legal, technical and commercial decisions are to be taken, we have to do the homework before we make the announcement—unlike the previous Government.

[Fiona Mactaggart (Slough) (Lab)]

I recognise that future investment plans depend on economic growth and I represent one of the most productive towns in the country on the most old-fashioned railway line—the great western main line. Will the Secretary of State agree to meet me and a group of companies from Slough that are anxious about the impact of other lines between Slough and Paddington, about the effect of Crossrail on the frequency of trains and about the lack of any connection from the west into Heathrow? Will he meet us to discuss his plans?

[Mr Hammond]

I should have thought that the hon. Lady welcomed the electrification of great western main line commuter services and the benefits that her constituency will see from Crossrail. I also have a great interest in the Airtrack project as my constituency is just south of Heathrow. I would be delighted to meet her to discuss these issues.

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

One benefit of High Speed 2 will be a release of capacity on the commuter section of the west coast main line from Euston to Milton Keynes. Will the Secretary of State confirm that as a result of today’s statement, rolling stock formerly used on Thameslink might be released to ease congestion on that line?

[Mr Hammond]

The release of rolling stock from Thameslink will provoke a cascade through the system so that Thameslink vehicles will be available for use on other lines. In some cases they will displace diesel units that will become available for use on still further lines. At the bottom of the pile, some old rolling stock is likely to be retired. By releasing large numbers of carriages into the pool we expect to change the market dynamics for leasing rolling stock, making it cheaper and therefore more affordable for the taxpayer and passenger alike.

[Phil Wilson (Sedgefield) (Lab)]

The Secretary of State knows that if the Agility train project goes ahead it will create thousands of jobs in north-east England, including hundreds in my constituency where the trains will be built. If that does not happen and the door is slammed on north-east England—if the other option is chosen—will the contract have to go out to retender, thereby causing further delays while the tendering process takes place and delaying the intercity express programme further?

[Mr Hammond]

As I have said, there are complex legal and commercial issues to consider. The hon. Gentleman will understand as well as anyone the process of negotiating with Agility trains as the preferred bidder and that everything we do has to be within the constraints of the European procurement directive.

[Julian Sturdy (York Outer) (Con)]

I, too, welcome the Secretary of State’s announcement. Will he outline in more detail the benefit that will come from the 650 new carriages that he has announced for 2010 to 2014 and how the investment in Network Rail will benefit the east coast main line?

[Mr Hammond]

Network Rail is making significant investments on the east coast main line, which explains to some extent the less than exceptional service performance on the line in the past few months as that work has been carried out. It will bring benefits in due course in terms of greater line speed and reliability. The 650 additional carriages will be distributed across the network. Some of them have already been contracted with individual franchisees and some of them will be the subject of further negotiations, which we will now commence, but there will be benefits for all parts of the country.

[Mr Ben Bradshaw (Exeter) (Lab)]

There will be bitter disappointment not just in Wales but in the south-west of England about the Secretary of State’s decision to shelve the previous Labour Government’s plans for the electrification of the great western line. Will he agree to publish in full the criteria that have informed his decision?

[Mr Hammond]

Yes. In accordance with our transparency agenda, we have made it clear—I made it clear in my previous announcement on roads—that we will in due course publish the business case analysis that informs decisions about projects that go ahead and projects that do not.

[Duncan Hames (Chippenham) (LD)]

There is a pressing need for additional carriages on the Cardiff to Portsmouth line—indeed, a literally pressing need around Bristol, and on trains serving Bradford-on-Avon. Will it be need and overcrowding, or the commercial positions of franchisees, that drive the allocation of the 650 new carriages?

[Mr Hammond]

This is not about the commercial position of franchisees; it is about the economic benefits. We are not just looking at costs and revenue. If revenues were able to justify the costs, franchisees would be able to do the work on their own, without Government support. We are looking typically at situations where the revenue from fares does not cover the costs, but the wider economic benefits justify the investment of public money.

[Clive Efford (Eltham) (Lab)]

My constituents are served by Southeastern and face the highest fare increases in the south-east network. They also suffer from pixies on the line—or rather, PIXCs: passengers in excess of capacity—at peak times, and there is a plan to deliver 12-car trains at peak times on that section of the network. Do the Government still intend to deliver those 12-car trains and relieve the congestion on the line?

[Mr Hammond]

That is part of the Thameslink project—12-car trains running with Southeastern—and it will go ahead.

[Mrs Anne Main (St Albans) (Con)]

I hugely welcome the proposed new fleet, but, given the delays that Bombardier caused for First Capital Connect by the late delivery of trains, what discussions will the Secretary of State have with those who are to build the trains, to ensure that they deliver the rolling stock on time?

[Mr Hammond]

When we contract for, or enter into arrangements to support the contracting of, rolling stock, we will look to see that there are effective penalty arrangements to make it extremely costly for anybody to fail to deliver on time what they are supposed to deliver.

[Mr Geoffrey Robinson (Coventry North West) (Lab)]

The Secretary of State has made it clear that he has drilled down hard on the numbers and taken an objective and exigent view of the returns that he expects from the investment. Can we expect a similar approach to HS 2? In the consultation, about which he was very open on the “Today” programme this morning, but has been less so with the House so far, will it be possible to look at alternative routes, not just geographically but in order to run HS 2 down existing lines?

[Mr Hammond]

I am delighted to hear from the hon. Gentleman. Not many people who have addressed me on HS 2 have asked me to alter the line so that it runs through their constituency, as I think he has. I am grateful for his enthusiastic support for the project. The HS 2 consultation will include the detail of the route from London to Birmingham, the wider strategic principles of the high-speed rail network and the selected route corridors, so his constituents, his local authority, and indeed he himself, will have an opportunity to make that point.

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

My right hon. Friend is correct to assess carefully the different options for the intercity express programme, but when does he expect the first IEP trains to enter service?

[Mr Hammond]

At this point I cannot give my hon. Friend an answer; it will depend on which option is selected. Of the two remaining options, one is for a novel technology—the Agility Trains proposal for a bi-modal train, which is an innovation—and the other is for a standard high-speed electric train set with a diesel coupling at the end of the wires. Clearly the latter option could be delivered more quickly, but our decision must be based on the best long-term interests of the UK’s railway.

[Chris Leslie (Nottingham East) (Lab/Co-op)]

The Secretary of State will acknowledge that, in my constituency certainly, there will be huge disappointment that midland main line electrification did not merit even a mention in his statement. Some of my constituents could be forgiven for thinking that he has something of a grudge against the east midlands, although I am sure—and we all hope—that that is not the case. When will the decisions on control period 5 be taken, so that we might at least have the prospect of that much-needed investment?

[Mr Hammond]

No, I will not acknowledge that there will be huge disappointment. Only a few months ago people were telling me, and relevant publications were saying, that all this investment would have to be cancelled because of the squeeze on public spending. We should rejoice in the fact that we have managed to focus on and prioritise public capital infrastructure investment that will support economic growth in this country. I am a little disappointed that the hon. Gentleman does not sing the praises of the decision to support and invest in the Nottingham tramway, but I will say one thing for him: I cannot blame him for the actions of the previous Government, because he was not in it.

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

I welcome my right hon. Friend’s statement, and thank him for his personal interest in the developments at Reading station. He knows, however, that there is particular overcrowding on the route from Reading to Paddington, so will he spell out the improvements that his announcement will make to commuting from Reading to Paddington?

[Mr Hammond]

The decision to electrify the line as far as Didcot will mean that services to Reading are more reliable and faster. It will also enable them to be more frequent, and they will have more passenger capacity. Put together, those factors will deliver a step change in the service that my hon. Friend’s constituents experience.

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

Will the light rail improvements in Sheffield, which I think I am going to welcome, include not merely the four extra trams but the nationally significant tram-train pilot? The lack of electrification of the midland main line is a disappointment, but will the track improvements go ahead and include the extra £23 million requested, so that we can significantly reduce travel times to London, to less than two hours for the first train, and reduce times for the second train, too?

[Mr Hammond]

There are two separate projects in that context, at least as far as the Department is concerned: the additional vehicles for the supertram, about which we have already made an announcement; and a further proposal, for which—the Under-Secretary of State for Transport, my hon. Friend the Member for Lewes (Norman Baker) tells me—there is a submission on my desk as we speak. I shall be happy to look at it and let the hon. Gentleman know how we can take it forward.

[Sir Robert Smith (West Aberdeenshire and Kincardine) (LD)]

I welcome the decision to continue running through-trains to Aberdeen and Inverness, and the fact that that uncertainty has now gone. In choosing the rolling stock that takes those journeys, will the Secretary of State ensure that we can maximise the journey improvements north of Edinburgh on the unelectrified part of the line?

[Mr Hammond]

Judging by the technical information that I have seen so far, I believe that both options would deliver almost exactly the same journey time, so I do not think that our choice of IEP mode will affect the journey time to Aberdeen or Inverness.

[Alison McGovern (Wirral South) (Lab)]

Wirral businesses have worked hard to build our local economy, and they expect me to ask questions of the Secretary of State. He says that he expects work in the north-west to begin in the next year, but given the delays that we have seen, will he return to the House to confirm absolutely that the work he has set out today will in fact go ahead?

[Mr Hammond]

I can save myself a trip by confirming now that work will begin next year and be completed in 2016—barring some completely unforeseen catastrophe. That is in the programme agreed with Network Rail.

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

I welcome today’s announcement of an extra 650 carriages for rail franchises outside London, as it could really help the vital London to Penzance service and the maritime line in my constituency. What assurance can the Minister provide that he is working with First Great Western to ensure that people in Cornwall benefit from the investments announced today?

[Mr Hammond]

First Great Western was first off the blocks today to welcome the statement, and we will continue to work with it. We expect additional carriages for First Great Western to be contracted as part of the 650-carriage programme, and of course, when decisions are made on the IEP and on further electrification of the great western main line, the company will ultimately be a significant beneficiary.

[Lilian Greenwood (Nottingham South) (Lab)]

The Minister knows that I am delighted with the extensions to our tram network, but unfortunately we cannot travel to London on it. Electrification of the midland main line would make it possible to reduce the travel time from Nottingham to London to an hour and a half. The Minister acknowledged that the economic case for electrification is strong—I would say “overwhelming”. Can he assure me that the Government have a strategy to achieve “Nottingham in 90”, pending the development of High Speed 2?

[Mr Hammond]

The hon. Lady will have noted that the last Government failed to deal with the issue of the electrification of the midland main line. I thought for a minute that I was going to get a bid for a tramway extension to London; to be honest with the hon. Lady, I prefer the option of midland main line electrification. There is a strong business case for electrifying the midland main line. The Government strongly support electrification, but we have, of course, to work within the envelope of affordability. We will be looking at projects for the next Network Rail investment control period, which begins in 2014. Midland main line electrification will have a strong case for inclusion in that programme.

[Gavin Barwell (Croydon Central) (Con)]

I warmly welcome the decision to proceed with the entire Thameslink programme, including the vital redevelopment of London Bridge—and the news that that will be done in a way that does not disrupt commuter services in south London. There is also the additional rolling stock for Thameslink, which should have a knock-on benefit for Southern passengers. It would be greedy to ask for more in this control period, but may I ask my right hon. Friend to consider improving the west London line in the next control period, so that south London, Gatwick, Surrey and Sussex have access to the High Speed 2 route?

[Mr Hammond]

I do not think I said that there would not be any disruption to commuter services during the massive reconstruction of London Bridge station; I certainly hope that I did not. I said that the reprofiling we have done will reduce the risk of serious disruption during that period. However, it will be a very major reconstruction project, and some disruption is inevitable. On west London services, of course we will examine proposals over the next couple of years as we prepare for the next Network Rail investment control period. Furthermore, the Mayor of London has an input into rail investment decisions for London commuter services.

[Heidi Alexander (Lewisham East) (Lab)]

I would like to return to the issue raised by my hon. Friend the Member for Eltham (Clive Efford). I think I heard the Secretary of State say that the additional Thameslink carriages would facilitate the lengthening of the overcrowded trains that run through our constituencies to 12 cars. Will he just confirm that?

[Mr Hammond]

I thought that the hon. Member for Eltham (Clive Efford) was referring to Thameslink services that will run out to the south-east. If I have misunderstood that, I shall look carefully at the question that he asked, and will write to both him and the hon. Lady.

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

I too welcome the news on new carriages, particularly given the broken promises of the previous Government. The Secretary of State has recognised the need for additional carriages on the Northern Rail franchise, but I remind him of the need to deliver those sooner rather than later.

[Mr Hammond]

The hon. Gentleman is right to refer to the broken promises of the previous Government. He will know that they promised 182 new carriages on the Northern Rail franchise, ordered 18, and delivered none. I hope that we will be able to do better than that for him.

[Mr Virendra Sharma (Ealing, Southall) (Lab)]

I welcome the statement because I represent a constituency that needs support from the Government. I also have an interest in the matter as a former railway employee. The First Great Western railways in my constituency are generally very overcrowded. I think the Secretary of State knows the geography of the area, which is not far from his own constituency; if he does not, I will invite him to my constituency so that he can see the overcrowding. Can any extra resources be put in through First Great Western, so that there can be extra carriages to enable people to travel freely and comfortably?

[Mr Hammond]

I do know the geography of the hon. Gentleman’s constituency; I enjoyed going there to campaign against him when he was elected at a by-election. [Laughter.]

The good news for the hon. Gentleman is that Crossrail will draw away some of the traffic that is using the services on which his constituents rely, and the electrification of the First Great Western main line commuter services will also provide them with additional capacity, faster services and greater reliability.

[Ben Gummer (Ipswich) (Con)]

From his own experience, the Secretary of State will know that the London-Ipswich-Norwich line could qualify as a heritage line; it has hand-me-downs that are not deemed fit for the west coast main line. To be fair, I must add that that situation has obtained for 150 years. Would it be good for us to be included within the IEP, so that for once we would get new rolling stock—fresh, not second hand?

[Mr Hammond]

The question of brand-new rolling stock versus cascaded rolling stock depends ultimately on the business case that can be made. It is expected that some brand-new rolling stock will be deployed on the Greater Anglia franchise. I cannot tell my hon. Friend that that will necessarily be used on the London-Ipswich-Norwich line, but it is expected that there will be some new rolling stock in that franchise.

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

I associate myself with the statements made by my hon. Friend the Member for Ealing, Southall (Mr Sharma). On the High Speed 2 consultation, will the Government be expressing a preference about the Heathrow link based on their acceptance of the Mawhinney report? While the Secretary of State is at the Dispatch Box, will he say when the interim McNulty report will be published?

[Mr Hammond]

Sir Roy McNulty’s interim report will be published shortly. I intend to make a statement to the House in the near future about how we intend to take that process forward, looking at the structure and affordability of the railways. I should make it perfectly clear that the consultation on HS 2 will be around a preferred route. It will be open to other parties to suggest alternative routes, but the Government will put forward one preferred route.

[James Wharton (Stockton South) (Con)]

I welcome my right hon. Friend’s commitment to ensuring value for money from the Government’s investment in British railways. He is well aware of the importance, or potential importance, to the north-east economy of the Agility Trains bid for intercity express. Will he continue to accept representations from hon. Members from all parties who represent north-east constituencies and would like the investment to come to our region?

[Mr Hammond]

I shall be very happy to accept such representations. I talk regularly to the hon. Member for Sedgefield (Phil Wilson) about these things. I was in the north-east last week and met some representatives of local authorities there. However, my hon. Friend will understand that the European procurement directive imposes a framework of rules around what we can and cannot do in a procurement such as this.

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

The Secretary of State may be interested to know that journey times between Cardiff and London Paddington actually increased during the 13 years of Labour Governments. I am pleased that my right hon. Friend is working closely with the Welsh Assembly to build a business case for the electrification of the main line. Will he also meet Welsh Members of Parliament and Welsh Assembly Members so that they can help him with his homework before he comes to a conclusion about this important decision for the Welsh economy?

[Mr Hammond]

I shall be very happy to do so. I assure the hon. Gentleman that whichever of the two options under consideration is chosen, quite independently of the question of electrification, that will deliver a saving on the journey time to Cardiff that will get us back firmly below two hours.

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

I welcome the Secretary of State’s statement. Commuters in my constituency were hit very hard by the previous Government. Fares went up by 10.3%; furthermore, RPI plus 3 for Kent was introduced in 2006, while trains to Victoria and Cannon Street were cut. May I ask for special consideration for commuters in the south-east in terms of both resources and fares?

[Mr Hammond]

As my hon. Friend knows, the Southeastern franchise fare formula was set on the basis of the need to contribute to and justify the huge investment in Javelin trains providing a super-fast service from Kent to London St Pancras. An objective analysis would say that commuters in the south-east have had a fair crack of the announcement today. Some 1,200 new railcars are to be delivered to the Thameslink service and some of the 650 additional cars to be delivered by 2014 will go to areas of south-east commuterland. There is also the commitment to proceeding with Crossrail. All those things will add massively to rail capacity into and around London.

[Jane Ellison (Battersea) (Con)]

I very much welcome the Secretary of State’s statement, and the fact that stations were not overlooked. Clapham Junction in my constituency is one of the two busiest interchanges in the country. To make the railways really work, we need great modern interchanges. Although Clapham Junction never made it in any of the three previous control periods, will he join me in hoping that it will be closely considered by Network Rail for the next control period?

[Mr Hammond]

Network Rail is considering the section of line from Clapham Junction into Waterloo, and I will discuss its plans with it over the coming months and years. My hon. Friend might like to know that I have been told this morning that when the work at Farringdon is completed, Farringdon will overtake Clapham Junction in terms of train movements.

[Gordon Birtwistle (Burnley) (LD)]

Like many north-west MPs, I travel on the Glasgow to Euston Virgin Pendolino trains, which are heavily overcrowded during the main journey times. I understand that new rolling stock has been delivered for these trains, but Virgin Trains is not allowed to use it until the Government give it permission to do so. Will the Minister give Virgin permission to use those extra carriages, which are in stock, to alleviate the overcrowding on that line?

[Mr Hammond]

There seems to be a little bit of misunderstanding about this. The new Pendolino carriages have not been delivered. An acceptance test train will be delivered—in 2011, I believe—and acceptance trials will be required for certification of the additional train carriages. Virgin Trains Ltd is contracted to integrate those carriages into the Pendolino train sets, independent of what happens at the termination of the Virgin franchise on the west coast, so that work will go ahead.

[Justin Tomlinson (North Swindon) (Con)]

I echo the calls to electrify the great western line fully, but I would press the Minister at least to secure the new fleet of all-electric trains with dual diesel use, to deliver much-needed faster journeys and greater capacity for my Swindon residents.

[Mr Hammond]

I have noted my hon. Friend’s point, and will take his comments into consideration.

[Mr Matthew Offord (Hendon) (Con)]

I welcome the statement on behalf of my constituents who use Thameslink. However, can the Minister advise me whether he will ensure that the Government’s investment is not undermined by the unions? Under the previous Government, First Capital Connect staff worked to rule and Ministers refused to intervene, because many of them were dependent on RMT and other union funding.

[Mr Hammond]

I must say that I have been disappointed by the reaction of the unions to this morning’s announcement. Far from welcoming this huge additional investment in the railway and this statement of confidence in its future, they have picked away at it much as the hon. Member for Garston and Halewood (Maria Eagle) has done. We need to restructure the way in which franchises are let to give the train operators proper incentives to work with all their stakeholders, including the unions, to find long-term solutions to the challenges on the railway. We have to get the cost of the railway down, and make it more reliable, affordable and sustainable for fare payers and taxpayers alike in future.

[Nicky Morgan (Loughborough) (Con)]

I congratulate the Secretary of State and his team on announcing such a significant amount of investment despite the economic legacy left to them by the previous Government. I also welcome his clear comments about midland main line electrification; I appreciate that we shall have to wait for that. His statement did, however, mention the midland main line—a fact that seems to be lost on Opposition Members. Could he enlighten the House about the improvements that will be made to the midland main line in the current period?

[Mr Hammond]

In Network Rail’s current control period, there is a programme of capital improvements to the midland main line that will deliver enhanced line speeds, and thus an improved service.

[Mr Marcus Jones (Nuneaton) (Con)]

I welcome the Secretary of State’s statement and the substantial investment in our rail network, but will he explain how much smaller projects such as the important Coventry to Nuneaton rail upgrade will be assessed for future funding?

[Mr Hammond]

My hon. Friend has on a previous occasion asked me to meet him and Opposition Members representing the area. I have agreed to do so, and I look forward to having a meeting with him in due course.

[Jenny Willott (Cardiff Central) (LD)]

I welcome the news that travel times from London to Cardiff will be reduced by 15 minutes; as has been mentioned, that will take us back to the travel times of about 15 years ago. When making a final decision on electrification of the great western main line all the way through to south Wales, will the Secretary of State take into account the extremely strong view of businesses, politicians and commuters across south Wales that electrification is absolutely critical to the future prosperity of the region?

[Mr Hammond]

Of course we will take into account the views of the business community, in particular, but we will also look at the evidence. I now want to work with the Welsh Assembly Government on building that evidence.

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

For 13 years, Yorkshire and northern Lincolnshire received the fluffy end of the lollipop when it came to transport policy. I therefore welcome the announcements on the trans-Pennine express and the east coast main line, which my two Yorkshire colleagues got to mention first. However, we also have in northern Lincolnshire some exciting open access proposals, including a line from Cleethorpes through Scunthorpe and direct to London. Will the Secretary of State work with those open access providers, and have his officials work with them, to help to bring those new services to our region?

[Mr Hammond]

We are always happy to see additional services being provided, but decisions on open access applications are for the rail regulator, not for the Secretary of State.

[Stephen Williams (Bristol West) (LD)]

I welcome the certainty that electrification out of Paddington will continue as far as Didcot. However, does the Secretary of State agree that it is a reasonable economic assumption that a continuous project of rolling out electrification through to Swindon, Bristol Temple Meads, Bristol Parkway and through the Severn tunnel is likely to provide better value for money than a piecemeal project where engineering teams, recruitment contracts and so on have to be reassembled?

[Mr Hammond]

The hon. Gentleman makes a fair point. I should make it clear that we will make the decision on the total extent of electrification of the great western main line long before the physical work begins.

[Martin Horwood (Cheltenham) (LD)]

I welcome this statement, which is clearly overwhelmingly good news for rail customers and for the environment. However, may I also press for full electrification to Wales and the west country, and ask for the Department of Energy and Climate Change’s new methodology for calculating the future cost of carbon to be fully factored into the Department’s necessarily careful evaluation of the business case?

[Mr Hammond]

My hon. Friend makes a fair point. We have made a commitment to changing the formula that we use to assess transport projects to reflect the latest values of carbon.

[Simon Wright (Norwich South) (LD)]

Is the Secretary of State aware of the research published by the East of England Development Agency about the £3.7 billion of potential economic benefit that greater investment in the great eastern main line would bring? Will he take that into the strongest consideration in his discussions with the franchisee?

[Mr Hammond]

There is not a franchisee on the east coast main line—[Hon. Members: “The great eastern!”] I am sorry, yes, the great eastern main line. Of course we will take into account all the evidence of economic benefits when we consider the future of this franchise.

[Mr Deputy Speaker (Mr Nigel Evans)]

Last, but certainly not least, I call John Pugh.

[Dr John Pugh (Southport) (LD)]

On a final jarring note, there is an impression that capital investment in rail usually means rail investment in the capital. What can the Minister do to disabuse me of my prejudice, perhaps by publishing per-region figures?

[Mr Hammond]

I thank my hon. Friend for his question. It is of course true that two huge rail projects are going ahead in the capital—Thameslink and Crossrail. The good news is that because both projects will between them deliver 1,800 new rail carriages, they will release large numbers of perfectly serviceable electric rail cars, which themselves make the case for further electrification of commuter lines in the north-west and on the great western main line. There are benefits for everybody, not merely for London and the south-east, deriving from the Crossrail and Thameslink investments.

High Speed 1

Lord Hammond of Runnymede Excerpts

Tuesday 9th November 2010 Written Statements

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

I am pleased to inform the House that the Government have approved the sale by London and Continental Railways Ltd of HS1 Ltd.

HS1 Ltd is the company that holds the concession to operate Britain’s first high-speed railway, running from central London to the channel tunnel. It also includes the stations at St Pancras International, and the international stations at Stratford, Ebbsfleet and Ashford. It is used by Eurostar and the Kent domestic high-speed services. Deutsch Bahn have also recently announced their intention, by 2013, to start running international services over the line to Frankfurt and Amsterdam, via Brussels.

The successful bidder is a consortium comprising of “Borealis Infrastructure” and “Ontario Teachers’ Pension Plan”, each with a 50% stake. The acquisition value is just under £2.1 billion. The sale receipts will be paid on completion of the contract, which is expected to happen later this month. At that point, the consortium will become the owner of HS1 Ltd which has a 30-year concession to manage the High Speed 1 line and stations. Under the terms of the concession, HS1 has the rights to sell access to track and stations on a commercial basis while having to preserve the nature and capacity of the high-speed railway and to maintain and renew it to modem standards. Compliance with these terms is overseen by the Office of Rail Regulation.

The Secretary of State for Transport will continue to own the infrastructure of the railway and the freehold to the associated land. On expiry of the concession, the Government will once more take unencumbered ownership of the railway with the opportunity to let a further concession. In addition, the Government retain a 40% stake in Eurostar International Ltd and development rights on the major associated regeneration sites at Kings Cross and Stratford.

Oral Answers to Questions

Lord Hammond of Runnymede Excerpts

Thursday 28th October 2010 Commons Chamber

[Karl MᶜCartney (Lincoln) (Con)]

12. What steps he is taking to ensure the economic sustainability of the rail network.

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

Recent estimates by the Office of Rail Regulation suggest that the UK railway has costs up to 40% higher than comparable European railways. To secure a fair deal for passengers and taxpayers in the medium term, we must get the cost base of the railway under control. The Rail Value for Money study led by Sir Roy McNulty will report in the spring, and the Government will then respond to its recommendations.

We have recently completed a consultation on passenger rail franchising, and will publish our response in due course.

[Peter Aldous]

The East Suffolk line has a vital role to play in helping to bring jobs to the east Suffolk and Waveney area. Can the Minister confirm that that will be taken into account when investment decisions are made?

[Mr Hammond]

I think that my hon. Friend is referring to the so-called Beccles loop, a scheme currently being developed by Network Rail whose implementation is planned for December 2012. Network Rail is expecting a £1 million contribution from Suffolk county council. Subject to that, funds are available for the scheme, and it is expected to proceed on schedule.

[Iain Stewart]

I welcome the Government’s commitment to major rail infrastructure projects between our major cities, but does my right hon. Friend agree that the long-term sustainability of our rail network can be enhanced by smaller projects such as the completion of the east-west rail link between Bletchley and Oxford?

[Mr Hammond]

I entirely agree. When I surveyed the proposed route of the high-speed railway a few weeks ago, I had an opportunity to examine the alignment of the proposed link. We will shortly begin discussions about the programme of enhancements that the Government wish to secure for the next railway control period, which will begin in 2014-15, and I am sure that the project mentioned by my hon. Friend will be one of those that will be considered carefully.

[Jake Berry]

The Rossendale to Manchester rail link is vital to economic development in Rossendale. Will the Secretary of State agree to meet representatives of the East Lancashire heritage railway board to explore ways of upgrading this heritage line to a commuter link?

[Mr Hammond]

I agree that good transport links with Manchester are vital to the regeneration and economic success of my hon. Friend’s area. I know that the local authorities in the area, together with Greater Manchester passenger transport executive, have been working on a scheme, for which the local sustainable transport fund that we have announced—or, alternatively, the regional growth fund—may be a potential source of funds. However, I or one of my colleagues would be happy to meet my hon. Friend.

[Karl MᶜCartney]

With regard to the economic sustainability of the rail network, particularly in my constituency of Lincoln, does my right hon. Friend believe that it would be helpful and desirable for Network Rail to act more reasonably and wisely in its economic modelling, and to reconsider its proposal to close the level crossings in our city, including the one that dissects the high street, for over 40 minutes in every daylight hour, a proposal that will decimate my constituency’s economy and the wider economy of Lincolnshire?

[Mr Hammond]

I am grateful to my hon. Friend for that question. I am aware of the impact that the level crossing in Lincoln has on the life of the town. Indeed, I have a similar situation in my constituency. There is an issue about the way scarce and valuable time on level crossings is divided between the railway and the road user. That must be informed by some proper cost-benefit analysis. The good news is that some new barrier technology is under assessment, which might help us, through a technical solution, to reduce the amount of barrier-down time necessary.

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

If the railways are to be economically sustainable, passengers have to be able to get through the stations and on to the trains, and many disabled people still cannot access large numbers of stations and trains are still inaccessible. The Government have decided to abolish the Disabled Persons Transport Advisory Committee. What process will be put in place instead to ensure that the good work that has been done to improve access is not lost and that we do not go backwards?

[Mr Hammond]

I welcome the hon. Lady's question. The decision to abolish the DPTAC was taken because disability issues have been mainstreamed into the Department's assessment processes and disability factors are brought into the advanced planning of programmes at all stages. As she will know, there is a rolling programme of improving access at stations, which Network Rail is funded to deliver. That programme will continue through this control period and into the next.

[Alison McGovern (Wirral South) (Lab)]

I speak regularly to businesses in Wirral, which tell me that they benefit greatly from the improvements to the west coast main line driven forward by the previous Government, but they are extremely fearful of ticket prices going up by RPI plus 3%—excruciating rises at this fragile economic time. What can the Minister say in response to those concerns?

[Mr Hammond]

As I said in my opening remarks, we have a problem with the cost base of our railway and in the medium term there is no doubt that the challenge for us is to get that cost base under control, so that we can ease the pressure on passengers and at the same time ease the pressure on taxpayers. However, in the short term, the decision that had to be taken was simple: do we go ahead with investment in additional rail vehicles to ease overcrowding and improve the passenger experience or do we not? We have taken the decision that investing for the long term is the right answer for the United Kingdom economy.

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

It is good to be facing the right hon. Gentleman across the Dispatch Box for our first Transport questions. He again spent the last week all over the media, from “Newsnight” to “The Daily Politics”, pretending to be Chief Secretary to the Treasury, so I apologise to him for dragging him back to his day job. Why did he tell The Times that fares would rise by 10% over the spending review period when commuters are actually facing a hike in fares of 30% plus?

[Mr Hammond]

I welcome the hon. Lady to her place. Perhaps I cannot tell her and her sister apart and that is why I was responding to the shadow Chief Secretary earlier this week. She refers to a quote. On my arithmetic, RPI plus 3% for the last three years of the spending review period, with RPI plus 1% for next year equates to a 10% real-terms increase in the regulated average fare over the period of the spending review.

[Maria Eagle]

I have the quote in front of me. The right hon. Gentleman used a figure. He said this; it is in quotation marks, so he can tell me if he was wrongly quoted:

“If you are paying £1,000 for your season ticket now, it could cost you £1,100 at the end of the period”.

That is not saying that it is a real-terms increase of 10%. That is saying that it is an increase of 10% in total. His Government's own Office for Budget Responsibility predicts inflation of at least 3.2% from 2012. That will mean a rise of at least 6.2% a year, meaning that by 2014, fares will rise by over 30%. I would have expected better standards of arithmetic from someone who would rather be in the Treasury.

Let me try the right hon. Gentleman on another question. Why has he scrapped the cap on individual fares that we introduced? Does he understand that that will mean many fares rising by more than the 3% above inflation that he has allowed? Therefore, for the sake of hard-pressed rail users, who are already struggling thanks to other measures that the Government are taking, will he now abandon that stealth tax on commuters?

[Mr Speaker]

Order. This is the hon. Lady’s debut. In future, questions must be shorter.

[Mr Hammond]

I think Members will understand that what matters is the real-terms increase in fares, and that is what I was referring to.

The hon. Lady asked about the average fare cap. She talks as if in the past rail companies were restricted on individual fares. That is not the case. There was always a basket approach until this year—strangely enough, a general election year. For this year only, the previous Government announced that that system would be abolished and that companies would be limited on individual fares. We have gone back to the basket system because it provides the freedom to respond.

[Maria Eagle]

It’s a stealth tax.

[Mr Hammond]

It is not a stealth tax because companies are only allowed to increase regulated fares by a weighted average of 1% above RPI in the coming year across all the regulated fare pool.

[Kerry McCarthy (Bristol East) (Lab)]

3. What assessment he has made of the likely effects on local transport schemes of the implementation of the proposed reduction in funding for local government resource grants.

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[Tony Baldry (Banbury) (Con)]

7. If his Department will fund (a) tunnelling and culverting work and (b) other mitigation work arising from the construction of any future rail line as part of the High Speed 2 project.

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

The coalition Government take very seriously the potential impact of a high-speed rail line on line-side communities and property owners. HS2 Ltd’s current preferred route utilises a range of mitigation techniques, including tunnelling and culverting where appropriate, practical and economically justifiable.

[Tony Baldry]

On page 174 of the HS2 proposals, the report states:

“It is difficult to analyse exactly where the benefits of HS2 would accrue.”

HS2 is a project that will clearly be expensive in construction costs, mitigation costs and the costs of compensation. Will my right hon. Friend give an undertaking that next year’s consultation will include a consultation on the principle of HS2 and on whether the same amount or even less money spent on the existing rail infrastructure could produce similar or even better results?

[Mr Hammond]

I can assure my hon. Friend that the option of spending money on enhancing existing rail infrastructure to provide the capacity and the additional connectivity that a high-speed railway will provide has been examined in detail and has been found not to be a practical option. The consultation next year starts from the premise that the Government believe that a high-speed rail network will be in the United Kingdom’s interest, but it will consult on issues to do with the design of that network, the route and the details of the proposals for the London to Birmingham link.

[Stephen Timms (East Ham) (Lab)]

The Secretary of State will be aware of the potentially very important role for Stratford International as a stop for through services from High Speed 1 to High Speed 2. Given the prospect of competitive services on the channel tunnel rail link and developments in east London, as well as the success of the O₂ dome and so on, does he agree that there is a growing economic imperative for international trains to stop at Stratford?

[Mr Hammond]

As the right hon. Gentleman knows, Eurostar services are operated by a commercial company that makes decisions on the basis of its commercial best interest. I think the answer that he should be looking for is more competition and more operators on the line. I am very pleased to hear that Deutsche Bahn intends to start operating services through the tunnel to London. The more operators there are, the more likely they are to seek additional niche markets and to provide additional station stops.

[John Mann (Bassetlaw) (Lab)]

8. What recent representations he has received on road safety at Elkesley, Nottinghamshire.

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

9. What recent representations he has received on his Department’s proposed funding for highway infrastructure; and if he will make a statement.

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

We have received a number of representations from hon. Members and members of the public regarding investment in major road schemes since the spending review commenced in June. In terms of specific representations, we have received 25 from hon. Members and 73 from members of the public. In addition, I have held meetings with a number of key stakeholders during which the spending review was discussed.

[Miss McIntosh]

I am grateful to my right hon. Friend. Will he take a further representation from me here and now to review the cancellation of the A1 scheme from Leeming to Barton? It goes to the heart of the economy in the north of England, supporting my constituency and those of my right hon. and hon. Friends, and it is key to the economic growth of north Yorkshire. Will he reconsider the cancellation of that scheme?

[Mr Hammond]

As I said when I made my statement on Tuesday, we have sought to take some hard decisions, and some of the schemes that were being taken forward by the Highways Agency had no realistic prospect of being funded in this spending review period or the next one. In those circumstances, I have taken the view that it would be wrong to continue to spend money on development of a scheme which is unlikely to be built in the foreseeable future, and therefore the scheme had to be cancelled. I am sorry to have to disappoint my hon. Friend.

[Derek Twigg (Halton) (Lab)]

I am grateful to the Secretary of State and the Chancellor for their support for the Mersey Gateway. However, construction can start only if funding is in place and we know when that will be released. May I ask the right hon. Gentleman the same question that I asked him on Tuesday? Subject to agreement on funding in January, as per his report, can he tell us if construction will begin before 2015? In other words, will the money be released to allow construction to begin before 2015?

[Mr Hammond]

I can tell the hon. Gentleman that the money will be released for construction to begin before 2015. Of course, this is a local authority-led project, so the local authority will ultimately determine how quickly the project can proceed, but both the capital allocation sum that we have made available and the private finance initiative credits will be released for use before 2015.

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

I know that many Members in the Chamber and drivers across the country are disappointed with the announcements that the Secretary of State made on Tuesday, but surely sending his Minister with responsibility for roads to Russia this week was a little steep. Is it not the case that for many of the yet unconfirmed schemes, local authorities are being asked to shoulder more of the burden at a time when they are facing a 28% cut in their funding? Does not the right hon. Gentleman feel a little like a car dealer who says to his customer, “You can drive away with any vehicle you choose,” before slashing the tyres of every single car in the showroom?

[Mr Hammond]

I suppose the simple answer is no. The hon. Gentleman might be interested that the Minister with responsibility for roads has gone to St Petersburg to join in an international conference on road safety. With reference to the local authority schemes in the development pool that I announced on Tuesday, what we have said is that local authorities need to look at ways of improving the benefit-to-cost ratios of the projects that they are promoting. In some cases, that will involve getting in third-party contributions, particularly developer contributions. Some authorities may wish to increase their own contributions. All authorities should be able to reduce cost.

[David Tredinnick (Bosworth) (Con)]

11. What proposals for improvements to the M1-M6 junction he is considering; and if he will make a statement.

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

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

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

Since I last answered Transport questions, I have agreed the Department’s settlement with the Treasury. The settlement that we have achieved shows the Government’s commitment to investment in infrastructure and in transport infrastructure, in particular. The announcements that have been made, and that will be made over the next few weeks, will support economic growth and job creation.

[Steve Rotheram]

I am sure that the Minister is aware of the historical importance of the River Mersey as the lifeblood of the city of Liverpool, the wider sub-region and beyond. Therefore, following the Prime Minister’s call for sustainable economic growth, will the Minister meet Merseyside MPs and the leader of the city council to re-examine the economic evidence for a turnaround facility on the banks of our world famous, UNESCO-recognised and iconic waterfront?

[Mr Hammond]

I think that the hon. Gentleman is talking about a cruise liner terminal and turnaround facility. Cruise liner ports are operated primarily by private sector companies. Public money has been invested in the facility on the Mersey, and that public money was invested on the explicit understanding that it would not be used for turnaround. If it were, issues of state aid and unfair advantage would be raised. I am happy to discuss the matter with the hon. Gentleman, but I hope that he understands that there are European Union competition and legal issues around the matter.

[Mr Peter Bone (Wellingborough) (Con)]

T5. I recently met the Consular Corps of London, which made it clear to me, in no uncertain terms, that there is a problem at our ports and airports with human trafficking, with people being admitted to this country on clearly forged passports. I wonder what the Secretary of State can say about that, and whether he can talk to the Home Office about it.

[Mr Hammond]

I am grateful to my hon. Friend. As he will know, inward border controls are primarily a matter for the UK Border Agency, and I shall make sure that his comments are drawn to the attention of my right hon. and hon. Friends in that Department.

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

T2. Bus services are a vital part of Newcastle’s economic infrastructure, and, despite the huge cuts to bus subsidies and to local government grants, the Minister is “hopeful” that bus fares will not rise and that bus services will not be cut. Unfortunately, the people of Newcastle cannot get to work on the Minister’s hopes. If fares do rise or if services are cut, what will the Minister do?

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[Mark Hendrick (Preston) (Lab/Co-op)]

T4. The Chancellor announced with a fanfare in the comprehensive spending review the modernisation and electrification of a number of lines up and down the country. Can the Secretary of State tell us when the electrification work on the Preston to Blackpool line will commence and when it will be completed?

[Mr Hammond]

I cannot give the hon. Gentleman a precise date now, but I am happy to talk to Network Rail about where that particular project lies in its current programme and get back to him.

[Philip Davies (Shipley) (Con)]

The Wharfedale and Airedale lines are two of the most congested railway lines in the country, and additional carriages are essential to alleviate that congestion. I am well aware that funds are limited, but will the Secretary of State prioritise additional carriages on those two lines, as that is essential for economic activity in the area, which I know is the Government’s priority?

[Mr Hammond]

I said when I made my statement on Tuesday that a further announcement would shortly be made about rail investment. That announcement will include the provision of additional rail cars to relieve overcrowding. I am afraid that my hon. Friend will have to wait for a few more days until that statement is made.

[Ian Lavery (Wansbeck) (Lab)]

On the rail network and fare increases, is the Minister aware that the proposed formula increase outlined in the CSR—that is, RPI plus three—will mean a cumulative increase of approximately 33.5% by 2015? That means, on the Newcastle to London line, an increase up to £500 for first class and £350 for second class—

[Mr Speaker]

Order. May I remind Members, both Back Benchers and Front Benchers, because I think they have forgotten, that topical questions and answers are supposed to be shorter? I think the Minister has got the thrust of the question, although the hon. Gentleman is certainly not the only offender, by any means.

[Mr Hammond]

I can do no better than refer the hon. Gentleman to my earlier exchange with the Opposition Front-Bench spokesman.

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

May I ask the Minister for special consideration for communities in the south-east that had RPI plus three imposed on them by the previous Labour Government in 2006?

--- Later in debate ---

[Mr Hammond]

I hear what the hon. Lady says. I repeat what I said on Tuesday: Nottingham has got a good deal out of the announcements that have been made over the past week or so. The A453 scheme remains in the development pool, which means that we will take it forward with further work. An announcement will be made during the course of 2011 on which of those schemes will be funded.

[Martin Vickers (Cleethorpes) (Con)]

I welcome the reply of the Under-Secretary of State for Transport, the hon. Member for Lewes (Norman Baker) to my hon. Friend the Member for Brigg and Goole (Andrew Percy) in connection with the delay to the A160 upgrade on the access road into Immingham docks. The Under-Secretary will be aware that the delay puts increasing pressure on the town of Immingham, and that the A18/A180 link road was given the amber light on Tuesday. Will he agree to meet me and the local authority to discuss how we can bring the work forward?

[Bill Esterson (Sefton Central) (Lab)]

In a letter to me, the Under-Secretary confirmed the good news about the Switch island to Thornton relief road, but he used the phrase “increased local contributions”. Can the Secretary of State tell me now what he expects those contributions to be?

[Mr Hammond]

I believe that the letter the hon. Gentleman refers to talks about the need for discussion to be held with local authorities on the cost of schemes and local contributions. As I said on Tuesday, when we are spending taxpayers’ money, we have an absolute duty to ensure that we have explored every opportunity to minimise the taxpayer contribution and the cost. That is what we will do, but he has approval for the scheme and it will go ahead. We will engage with his local authority to ensure that it is as efficient as possible.

The Minister for Women and Equalities was asked—