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?

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[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—

Cost of Ministerial Cars (2009-10)

Lord Hammond of Runnymede Excerpts

Thursday 28th October 2010 Written Statements

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

I am publishing today details of the number of and cost to Departments of Government cars provided to Ministers by the Government Car and Despatch Agency during the year 1 April 2009 to 31 March 2010.

Transport (Investment)

Lord Hammond of Runnymede Excerpts

Tuesday 26th October 2010 Commons Chamber

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

With your permission, Madam Deputy Speaker, I would like to make a statement on the Government’s investment plans for our transport networks. During the course of my remarks, hon. Members might find it helpful to refer to the documents that I placed in the Library of the House and the Vote Office a few minutes ago.

As my right hon. Friend the Chancellor explained last week, the decisions that we have taken to cut waste, end lower-priority programmes and reform the welfare system allow us to invest in Britain’s long-term economic growth and to prioritise transport infrastructure to support that growth. We have already announced a green light for Crossrail and for tube upgrades, plans for investment in low-carbon vehicles and recharging infrastructure, and work on a high-speed rail network. Work is continuing on the evaluation of additional investment in major rail projects, and I expect to be able to make an announcement to the House on that in the next few weeks.

Today, I can confirm a programme of investment in our crucial strategic road network, managed by the Highways Agency, and in our local transport networks. We will continue to invest in capital maintenance, spending £5.9 billion over the next four years on unglamorous but important works to maintain the integrity of the network, both strategic and local.

We have also allocated more than £180 million over the four-year period for high-value minor enhancements to the strategic road network. We are taking action to reduce the cost of proposed Highways Agency schemes by re-specifying, renegotiating with suppliers and improving governance and control. Thanks to those decisions, I can confirm that funds will be available for sustainable upgrades to the strategic network to tackle congestion hotspots, delivering network-wide benefits that provide very high returns on investment.

I can confirm today that the eight Highways Agency major schemes currently under way will be funded to completion and open to the public in the next two years. I can also announce today funding for 14 new projects, including the schemes announced by my right hon. Friend the Chancellor last week, to commence on site by April 2015. These are: the A11 Fiveways dualling; the M4 and M5 junction north of Bristol; the M6 between junctions 5 and 8 in Birmingham; the M62 between junctions 25 and 30 near Leeds; three schemes on the M1 between Derbyshire and Wakefield from junctions 28 to 31, 32 to 35A and 39 to 42; four schemes around Manchester from junctions 8 to 12 and from 12 to 15 on the M60; junctions 18 to 20 on the M62 and from Knutsford to Bowdon on the A556; improvement of the A23 between Handcross and Warninglid; the completion of the upgrading of the M25 with a managed motorway scheme for peak time hard-shoulder running between junctions 23 and 27 and between junctions 5 and 7. Those essential investments will cut congestion, improve journey times and, most importantly, support economic growth. Every pound we spend on these schemes will generate on average £6 of benefits.

I can also confirm that work will continue on developing a further set of Highways Agency schemes ready to start in the next spending review period if funds become available. A detailed list is included in the documents I referred to earlier. There is also one last group of four current Highways Agency schemes that will be reviewed to see if they still represent value for money and can be progressed for the next spending review period.

Important as strategic roads are to the national economy, many of the highest value-for-money proposals are those that address the needs of the local road and public transport infrastructure that supports the economies of our cities, towns and rural areas. That is why, last week, we announced our commitment to completing major local projects worth more than £600 million—including measures to improve access to Weymouth in time for the Olympics and acceleration of work on the Tees Valley bus network, and, I can confirm, the intention to invest up to £350 million to complete the upgrade of the Tyne and Wear metro.

We have also announced our intention to proceed with private finance initiative schemes to extend the Nottingham tram network and deliver sustained improvements in highways maintenance in Sheffield, Hounslow and the Isle of Wight. My Department will work urgently with the four local authorities concerned to ensure that we can deliver these schemes within the available funding.

My right hon. Friend the Chancellor also announced last week that we will invest more than £900 million over the next four years on new local authority major schemes: including a new bridge over the Mersey at Runcorn, partly funded by tolls; improving access to Leeds station; and extending the Midland Metro tram line from Snow Hill to New Street through Birmingham city centre.

I can confirm today that a further seven major local authority projects have also been given the green light, subject to planning and other approvals. They are: a new bus interchange and associated transport improvements in Mansfield; a new bypass, which will take traffic away from communities in Sefton; an integrated package of sustainable transport improvements in Ipswich; major improvements to the M5 at junction 29 east of Exeter, providing access to new housing and employment areas; a bypass to the north of Lancaster, improving connections between the port of Heysham and the M6; improvements on the A57 east of the M1 junction 31, near Todwick; and a new northern distributor road in Taunton to provide additional cross-town capacity and access to areas of brownfield land.

Those schemes, worth about £300 million in total, have been selected from a pool of projects with proven business cases. They are listed as supported schemes and shaded green in the list to which I referred earlier. Our duty, however, is to ensure that every pound that is spent is essential. Even with those priority schemes, I expect the local authority promoters to work with my Department to ensure that every opportunity for cost saving has been taken and every source of alternative contributions has been fully explored before funding is confirmed in January next year.

Although the House will welcome the decisions, Members on both sides of the House will want to know how we propose to handle the remaining schemes. The £600 million plus remaining for additional new projects, after the announcements already made, demonstrates the importance that we attach to local authority major schemes, but it will not be enough to fund all the schemes proposed by local authorities. In the list that I have placed in the Library, I have included all currently submitted schemes, including three that previously had conditional approval and that we will now seek to progress to full approval, showing how we propose to categorise each of them.

For 22 schemes, for which my Department has completed a value-for-money assessment in the past four years, we will invite best and final funding bids from the development pool—the schemes shaded amber in the list. Promoters will be challenged by my Department to consider the scope of the scheme, its cost, lower-cost alternatives and their ability to contribute more locally. Those who can make the best case are the most likely to receive funding, which will be confirmed by the end of 2011.

Further analysis will be carried out on another 34 schemes, for which the Department does not currently have an up-to-date assessment, to determine whether they can go forward to join the development pool and bid for a share of the £600 million plus of funds available. Those schemes are shaded blue on the list. A decision will be made by January 2011.

This competitive process will ensure that the greatest possible number of schemes, with the best value for money, will be able to proceed, facilitating economic growth and creating jobs across the country. Under regional funding allocations, regional and local bodies were encouraged by the previous Government to identify a large number of schemes for longer-term prioritisation. Many of those were in the early stages of development, with no business cases submitted to the Department for Transport before the cut-off that we announced on 10 June this year.

In the longer term, I want such decisions on local transport priorities to be taken out of Whitehall and placed in the hands of local people. My Department will work with the emerging local enterprise partnerships and local authorities to identify the best approach to local decision making on future transport priorities.

I have set out our decisions and what they mean for our strategic and local transport networks. The measures will help to deliver long-term, sustainable and affordable economic growth in this country. The difficult choices made by the Government have allowed us to invest in the future. I commend the statement to the House.

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

May I begin by thanking the right hon. Gentleman for sending my office a copy of his statement in advance? Helpfully, he also placed a copy of the document to which he has been referring in the Vote Office. On my way in, I saw what looked like a bus queue there, because the document was late—a bit like some buses. None the less, it is better late than never. Members on both sides of the House will be grateful to have had sight, at least before he began his statement, of a copy of the document showing what has happened to the schemes.

This is the first time that the right hon. Gentleman and I have faced each other across the Dispatch Box, and I look forward to further such exchanges. We have at least one thing in common: he does not want to be in his current job because he would rather be the Chief Secretary to the Treasury, and I do not want to be in my job, because I would rather be in his job—in a Labour Government of course. We will see which one of us gets what we want first.

I welcome the confirmation of the projects that the Secretary of State listed in his statement. They were planned by the last Government, and I am pleased that he has recognised the need for that vital investment to be protected. Let me say at the outset that we have pledged to be a responsible Opposition, and that when I agree with the Secretary of State, I will support him and work with him. Transport is critical to our national interest, and investment in infrastructure is vital to our construction industry and the rebalancing of our economy from financial to real engineering. To the extent that we can find common ground, I certainly intend to ensure that we work together.

As a north-west Member of Parliament, I especially welcome the confirmation of much of the funding that the last Government agreed for the second Mersey crossing between Runcorn and Widnes and the electrification of rail lines between Lime Street, Manchester, Preston and Blackpool, which will mean more reliable, greener services with more capacity and reduced journey times. Those projects are vital to the regional economy, and it is absolutely right for them to proceed.

While Members on both sides of the House will welcome the commitments made today to a wide range of important transport infrastructure projects, the statement raises a number of questions. The main purpose of the schemes is to tackle congestion, yet at the same time the Secretary of State has announced hikes in rail fares that may well drive people on to the roads. Indeed, I believe that they will. Does the Secretary of State accept that lifting the cap on regulated rail fares and allowing them to rise to 3% above inflation from one year to the next will further squeeze hard-working people who commute? Many have already been hit by cuts, including cuts in child benefit, and they are about to face a increase in the VAT rate to 20%, an increase in employees’ national insurance contributions, and, if they are in the public sector, an increase of 3% in their pension contributions. Just how much more can commuters be expected to take?

Does the Secretary of State accept that, according to the assumptions on inflation by the Office for Budget Responsibility, the increase means that commuter fares will rise by 33.6% by 2015? That will simply drive people off the railways and back on to our already congested roads. His predecessor as spokesperson in opposition, the Minister of State, Department for Transport, the right hon. Member for Chipping Barnet (Mrs Villiers)—who is present—said that a 3% rise in fares would be enough to

“price people off the railways”.—[Official Report, 17 July 2007; Vol. 463, c. 149.]

What does he think that a 33.6% increase will do?

Why did the Secretary of State argue in an interview with The Times on Saturday that the fare rises would be 10% over four years? He said:

“If you are paying £1000 for your season ticket now, it could cost you £1100 at the end of the period”.

I know that, as he told The Times, the Secretary of State loves his Jaguar—I love Jaguars as well, especially as they are built in my constituency—but let me tell him that a season ticket from Weybridge to London costs £2,272 today, and that, as a result of these fare rises, it could cost £3,035 by 2015. Someone who aspires to be Chief Secretary to the Treasury should be able to tell that that increase is much more than 10%.

How many of the schemes that the Secretary of State has announced today will, under the revised plans, be completed later than was originally intended? What percentage of the cost of those schemes will now be covered by the current spending review, and how many will see their completion delayed until the next? What assessment has the Secretary of State made of the economic impact of the delays on jobs, growth and competitiveness? How many of the schemes have been approved on the basis of the original proposals that he inherited, and which of them have been scaled back? What are the implications of that for each scheme?

What consultation has been carried out with local government and local communities about any changes to the schemes? What percentage and amount have been moved from Government expenditure to PFI? Has the Secretary of State completed any assessment of the impact of the reduction in transport capital expenditure on our wider transport networks? What assessment has he made of the impact on our road network, and likely increases in congestion, of the significant increases in train fares and the cuts in local bus services that the comprehensive spending review set out? What assurance can he give us that these schemes will lead to high-quality manufacturing jobs in the United Kingdom, with contracts being secured by British industry?

Finally, does the Secretary of State agree that it was quite wrong of him to spin his comprehensive spending review settlement as a huge victory? Is not the reality that he over-spun his settlement? I have here an analysis by the Institute for Fiscal Studies of the impact of the CSR on Government Departments. Helpfully, it has listed Departments as winners and losers, and I am sorry to have to tell the Secretary of State that the IFS says he is a loser.

The impression given by the Secretary of State is that cuts in his budget have no impact on capital investment. However, on top of the 21% reduction in resource spending, there is to be an 11% cut in spending on capital. That is 11% less spent on vital infrastructure, so it is quite wrong for the right hon. Gentleman to suggest that he has somehow secured a great victory or that spending is not being cut. No doubt we will have many more exchanges across the Dispatch Box, not least when the right hon. Gentleman announces his rail investment proposals.

The Labour party aspires to have an integrated transport policy. Perhaps the right hon. Gentleman can in future have an integrated transport statement and tell us about all the investment on the same day.

[Mr Hammond]

I thank the hon. Lady for her comments and welcome her to the Dispatch Box. I welcome the tone of her initial remarks at least; I am sorry it degenerated a bit towards the end. I am also sorry to have to tell her that I cannot write as quickly as she can ask questions so I am not sure that I took them all down, but I will try to deal with some of the issues she raised.

On the departmental settlement, frankly I think it is a bit rich for the hon. Lady to say that an 11% reduction in transport capital expenditure is a disastrous settlement, because when her Government were in office they were planning a 50% cut in total public capital expenditure. In the comprehensive spending review, the Government had to take difficult decisions about what to prioritise. The Department for Transport faced the smallest reduction in capital expenditure of any Department and it now has the second largest capital budget in the Government. I would have thought that the hon. Lady would welcome that as a way of protecting transport infrastructure investment.

The hon. Lady asked about rail fares, and although today’s statement is not primarily about railways I am happy to deal with that issue. Of course I would have preferred not to raise the cap on regulated fare increases, but we faced a choice between going ahead with the investment in additional capacity to reduce overcrowding and improve the attractiveness of the railways to passengers or increasing fares, and I took the decision that the right long-term solution was to increase fares for a period of three years. But let me be clear: I agree with the hon. Lady that fares cannot increase indefinitely, and the medium-term solution to the challenge on our railways has to be getting the cost base down so that the railways are affordable for both passengers and the taxpayer, who supports the railways through subsidy.

The hon. Lady asked whether the schemes announced today would be completed later than originally planned. Most of these schemes did not have a specific timetable, but I can tell her this: over the next four years transport investment will be greater in cash terms than it was over the last four years, so we are not talking about some massive rescheduling of the programme.

The hon. Lady asked about consultation with local government. All the local authority schemes I mentioned today were, of course, proposed by local authority sponsors, and there is constant dialogue between local authorities and my Department. In line with Mr Speaker’s recommendations, we have made this statement first to the House of Commons, but local authorities will be informed during the course of today of what I have said about their schemes, and we will now engage in intensive dialogue with them as we take these proposals forward.

We believe that investment in highway infrastructure and local transport schemes is crucial to making the UK an attractive place for manufacturing investment, both indigenous and inward. As the hon. Lady knows, I cannot promise her that the jobs created directly by this investment will go to UK providers because the schemes will be subject to the European procurement directive rules and will have to be tendered in an open and transparent way, but I am sure that our announcements today will support the revival of the UK manufacturing base, which is critical to this country’s future.

[Anna Soubry (Broxtowe) (Con)]

While I welcome, after years of dithering by the last Administration, a decision on the extension of the tram network in Nottingham—one of the routes passes through my constituency—please will the Secretary of State look at Nottingham city council’s plans for a workplace parking levy? I also ask him to consider the effect of that levy on jobs in my constituency. Boots employs more than 7,500 people at the Beeston site. The workplace parking levy will threaten jobs throughout greater Nottingham.

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[Mr Hammond]

I am grateful to my hon. Friend for her remarks. I know that the Nottingham tramway is not universally popular and that the workplace parking levy is even less so. However, if we are serious about a localism agenda, we will find that sometimes, perhaps often, the things that elected local authorities choose to do on behalf of local residents are not always in accordance with our own preferences and priorities. That is in the nature of localism, and I embrace it.

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

I welcome the positive parts of the statement, but there are major problems relating to the very important strategic schemes currently funded and identified through regional allocations. Does the Secretary of State agree with his statement to the Select Committee on Transport that structures wider than local economic partnerships would be necessary to examine such schemes in the future? Does he still maintain that this will bring more localism, given that we are told that future schemes of this nature will be funded partly through the regional growth fund and that decisions on that fund are to be taken entirely nationally?

[Mr Hammond]

I am glad that the hon. Lady has raised the issue of the regional growth fund. It is important to reiterate that that fund will be open to transport projects; they will be able to bid for funding from it. However, that is not in substitution for the very significant allocations that I have announced today—it is in addition. I hope that some of the smaller local authority schemes, in particular, may be worked up as bids to the regional growth fund.

The hon. Lady talks about local enterprise partnerships. As I said in my statement, my objective is to move to a system that more clearly allows local communities and local authorities to determine how the funding allocated to their area should be spent. The previous Government introduced the regional funding allocation system. The mechanisms through which that was intermediated are now to be abolished, along with the regional structure of government. What I said to the Select Committee and repeat today is that my Department will carefully examine the LEPs as they come into being. Of course they are a bottom-up structure, rather than a top-down one, so different LEPs will look different. We will need to see how they are organised and whether they are on a sufficiently strategic scale to be allocated transport funding individually or whether we might ask them to form strategic alliances with other LEPs as a basis for transport funding over relevant geographical areas.

[Several hon. Members]

rose—

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[Madam Deputy Speaker]

Order. I say to the hon. Gentleman that I have only just advised the House that hon. Members could help each other by being brief. I would be grateful if the Minister would now answer.

[Mr Hammond]

The Swindon to Kemble project, which my hon. Friend mentions, was uniquely the only Network Rail scheme brought forward under the regional funding allocation system. It had not submitted a business case to the Department before the cut-off date of 10 June, but it is the type of scheme that might be put forward in a future locally prioritised funding process. Alternatively, it might be submitted as a proposal for control period 5 in the Network Rail settlement from 2015.

[Clive Efford (Eltham) (Lab)]

Will the Secretary of State provide some clarification of the Prime Minister’s comments at the CBI yesterday—reported in today’s media—where he seemed to give a commitment to building the Thames gateway bridge, which, as the Secretary of State will be aware, was abandoned by Mayor Boris when he was first elected? That seems to suggest a lack of communication between City Hall and No. 10. People in south-east London are demanding that something be done about the daily congestion that builds up at the Blackwall tunnel. If the Secretary of State is in communication with the Mayor, will he consider that option since many local people are demanding that something be done about that daily nightmare?

[Mr Hammond]

I have not seen my right hon. Friend’s speech, but I suspect that he was referring to the statement made last week about the Dartford crossing, where we have made the tough decision to increase charges. We have also made a commitment that the crossing will not be sold, as the previous Government proposed, and that we will work up proposals for additional capacity crossing the Thames at or in the region of that area.

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

I welcome the upgrading of the Blackpool tramway and the many other infrastructure improvements in the north-west that will remove barriers to economic growth. Will the Secretary of State join me in congratulating the work of the Northern Way, which has provided such an excellent evidence base to help with the quality of transport policy making in the north? What role does he see the Northern Way playing as we go forward in ensuring that we have excellent quality data on which to judge policy?

[Mr Hammond]

I am grateful to my hon. Friend for that question. The Northern Way has produced some extremely valuable work that has informed a number of the decisions that have been taken and I look forward to its continuing to contribute to the debate.

[Mr Bob Ainsworth (Coventry North East) (Lab)]

May I tell the Secretary of State that the Coventry and Warwickshire travel-to-work area runs on a north-south axis and, despite the congested state of the roads and the existence of a railway, a fraction of 1% of the journeys take place by rail? That is why the Coventry to Nuneaton rail upgrade is so important. It seems that he has put us in the waiting room for the waiting room and that we have only until January, to save the scheme at all. I have no doubt that if the Coventry and Warwickshire local enterprise partnership was up and running, that would be the top priority for it, but will the Secretary of State advise us how on earth, when that LEP is not even in existence yet, we can impress on his Department the importance of this scheme and get it into a state for approval before January? I would like some advice.

[Mr Hammond]

To clarify, the scheme to which the right hon. Gentleman refers is one in the pool of projects submitted to the Department before the cut-off date that we announced in June, but it has not yet been appraised by the Department. The Department will now make a rapid assessment of the scheme—the right hon. Gentleman asserts that it is extremely high value for money, but I can tell him that the promoter of every single scheme that I have come across asserts that their scheme is high value for money. A number of these schemes will then be accelerated into the development pool so that we can do further work on them with the promoters during 2011 with a view to allocating funding at the end of 2011. I would say to the right hon. Gentleman, as I said to my hon. Friend the Member for Cheltenham (Martin Horwood), that if a rail scheme is not successful in this funding process, it will of course be possible for it to be put forward as a proposal for the next control period of Network Rail’s capital enhancement settlement.

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

For years, Yorkshire and the Humber has had some of the lowest per capita transport funding in the country, so I welcome the investment in Yorkshire and the Humber today and specifically the two schemes in the Humber area—the A63 Castle street and the A161—that are likely candidates for funding into the future. May I ask the Secretary of State whether he will take into account when making a final decision the massive investment that is going into the ports on both the north and south banks of the Humber? Will he also give us any further details of when a final decision will be taken on whether those schemes will be funded?

[Mr Hammond]

Transport funding in Yorkshire and the Humber is now about average, although I accept the comments that my hon. Friend has made about historical levels of funding. The two schemes to which he referred will not be funded during the current spending review period but they will continue to be worked on as schemes for funding in a future spending review period, as and when funding becomes available. The appraisal model that the Department uses will take account of the effects that he talks about and the external benefits that can be delivered.

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

In reassessing the M54-M6 toll road, will the Secretary of State take into account travel times? Over the years, travel times between London and Scotland have seemed to be increasing. Will he take that factor into account?

[Mr Hammond]

Travel times and potential journey savings are one of the key factors that the current model takes into account. The M54-M6 toll link is in the group of schemes that will be reassessed, because the Department needs to reassure itself that the value-for-money case for the scheme still applies.

[Ben Gummer (Ipswich) (Con)]

I am delighted that funding for “Ipswich—Transport Fit for the 21st Century” is being brought forward, a decision on which the previous Administration dithered, and I thank the Secretary of State for having regard to my many letters to him on the matter. Will he describe in greater detail the hurdles over which the county council now needs to leap to achieve funding in January?

[Mr Hammond]

The Under-Secretary, my hon. Friend the Member for Lewes (Norman Baker), will be in Ipswich tomorrow to examine the scheme, when there will no doubt be an opportunity to discuss those issues with the promoters. Of course, the promoters will need to obtain any necessary planning and other statutory consents to allow schemes to go ahead. We will engage with the local authority promoters to ensure that any unnecessary cost has been squeezed out of the scheme and that every opportunity to secure supporting non-public-source funding has been explored and exhausted. By doing that, we will ensure that the total pool of schemes that we can support is as large as possible and that the economic benefits to the economy as a whole are as great as possible. We will undertake that work with the local authority promoters as a matter of urgency.

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

I thank the Secretary of State for receiving a delegation from Coventry on the Nuneaton to Coventry line, which is better known as the NUCKLE project. Further to the remarks made by my right hon. Friend the Member for Coventry North East (Mr Ainsworth), the scheme has been around for several years, and I appreciate the fact that it is still in the running. Even under the previous Government—we had a go at them—officials kept knocking the scheme back for a variety of reasons. Will the Secretary of State assure me that the scheme will get a fair wind this time round?

[Mr Hammond]

I assure the hon. Gentleman that all schemes will be objectively appraised and that I do not always take the word of my officials; I ask to see the underlying data and business case, and I shall continue to do so.

[Mr Don Foster (Bath) (LD)]

The Bath transportation package is now in the development grouping. Some aspects of the scheme are unacceptable to many people, including me, but I stress to the Secretary of State that modest Government support would deliver in Bath £2.5 billion of public investment, the largest brownfield development site outside London, 7,000 new jobs and 2,500 new homes. When he is judging what constitutes the best case for success, will he assure me that he will include the potential for economic growth?

[Mr Hammond]

Indeed I can. As I made clear in my statement, potential for economic growth is one of the key priorities in allocating funding. I am also aware that many schemes do not have 100% support for the currently proposed solution in the communities that they serve. Where there are ideas about how a scheme might be differently presented and how costs might be taken out in order to make a scheme more attractive and thus significantly more likely to secure funding, the Department will be interested to hear about them in the course of the process.

[Lilian Greenwood (Nottingham South) (Lab)]

The Secretary of State says that he wants to move to local decision making, but I can tell him that local people, local authorities, local MPs on both sides of the House and local businesses all want the A453 widening to go ahead, and we produced a dossier to him to explain why. Does he accept that his decision to shelve the scheme until at least 2015 will be a kick in the teeth for our regional economy, local businesses and the job creation we so clearly need?

[Mr Hammond]

Dear, dear! I must be going deaf, because I did not hear the hon. Lady mention the Nottingham tramway or the ring-road improvement. Far from being a kick in the teeth for Nottingham, this very carefully made decision prioritises the projects with the highest value for money. Whether she likes it or not, the ring road showed a much higher return per pound of taxpayers’ money—

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

Rubbish!

[Mr Hammond]

The hon. Gentleman says that, but it runs through his constituency; there is no pleasing some people. The ring road showed a much higher return per pound of taxpayers’ money spent than did the A453 scheme. However, the A453 scheme is in the development pool and we will continue to work on it. As the hon. Lady will know, the scheme has some powerful advocates who regularly make the case for it to me.

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

I applaud the criteria by which the Secretary of State has chosen to decide which projects should go ahead, but on the basis of sustainability, affordability, economic growth, cutting congestion and, I add, road safety, for what reason has the A1 Leeming to Barton project been cancelled? It was widely expected that it would go ahead to increase road safety, reduce road deaths and increase economic growth, and it is a major national road artery.

[Mr Hammond]

Decisions on the cancellation of Highways Agency schemes were made after very careful analysis of the business cases and a realistic appraisal of the likely envelope of funding not only in this spending review period but in the next one and the one beyond. It would be very easy to stand here and say that nothing is cancelled, but I do not want to encourage further spending on schemes that have no realistic prospect of going forward within the next 10 years, as that money could be spent on live schemes and getting work done rather than on people sitting in Highways Agency offices designing and redesigning schemes that will never happen. We have had to take some tough decisions, but I am quite confident that we have taken the right ones.

[Simon Danczuk (Rochdale) (Lab)]

Rochdale interchange, which is more commonly known, in Rochdale at least, as Rochdale bus station, is still in the amber list of schemes. The Secretary of State will be aware that it has cross-party support across Rochdale, but is he aware of its importance to the redevelopment of Rochdale town centre?

[Mr Hammond]

I am aware of the importance that the local authority and local people attach to the scheme. I am sure that in defining it as Rochdale interchange they were seeking to talk up its importance. Might I suggest that they call it Rochdale international interchange to raise its game a little further?

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

As the Secretary of State has already recognised that the A1 is a road of national strategic importance and as the design work to dual two of its worst sections has already been done, can that scheme be brought forward in one of the future spending rounds?

[Mr Hammond]

I am afraid that that scheme is some way off at the moment. At a point in the future that we will define in due course we will reopen the programme entry system so that new proposals can be made by local authorities or by the Highways Agency for future consideration, but I repeat that I do not want to have hundreds of schemes with thousands of civil servants working on them and no realistic prospect of getting on site.

[Bridget Phillipson (Houghton and Sunderland South) (Lab)]

The Sunderland strategic transport corridor, which includes the new bridge over the River Wear, will be crucial in bringing jobs to Sunderland and securing the economic regeneration of the region. What reassurance can the Secretary of State offer to the people of Sunderland that those important factors will be considered given that he accepts that the scheme offers value for money?

[Mr Hammond]

I can give the hon. Lady the assurance that the factors she mentions are indeed taken into account in the model. As I hope I made clear this afternoon, the whole aim of the Government in focusing on supporting infrastructure investment, and particularly transport investment, at a time when public expenditure is under extreme pressure, is to use transport infrastructure investment as a way of stimulating economic development and of coaxing it into areas that most need it. I recognise Sunderland’s claim, but as the hon. Lady will understand, this project is one of many in the development pool, so applicants will have to sharpen their pencil, think through their scheme and put their best proposal forward; then we will make a decision.

[Mr Mark Spencer (Sherwood) (Con)]

I congratulate the Secretary of State on his successful negotiations with the Treasury, and I welcome the fact that both Mansfield bus station and the Hucknall town centre improvement scheme are in the development pool. What criteria will the Secretary of State and his Department use to distinguish those schemes in the development pool that will move forward from those that will not?

[Mr Hammond]

The Department uses a set of criteria wider than simply measuring the benefit-cost ratios—monetisable benefits currently add up to exactly 50% of the weight in the multi-criteria analysis that we perform. We also look at wider network benefits, regional balance, the impact on economic development over a wide area, and landscape impacts and wider environmental benefits and disbenefits, so it is quite a wide-ranging scheme. Details are available on the Department for Transport website.

[Derek Twigg (Halton) (Lab)]

My question is on the funding of the Mersey Gateway between Runcorn and Widnes. It would be useful if the Secretary of State said whether he has determined the planning application, because the project depends on that as well, but my specific question is about the fact that he said in the statement that funding would be agreed in January. Does that mean that Halton borough council will be given funding to start work before 2015, and what savings is he looking for? A crucial element of this is tolls, which clearly must be at an acceptable level. We must remember that the current bridge is untolled and is a local road, so there is no scope for further income from tolls. There must be support from the Government through the funding arrangements.

[Mr Hammond]

I welcome the hon. Gentleman’s comments. I have followed the scheme with particularly close interest, because it is a very innovative proposal by a local authority. It is a very big scheme for a local authority to propose, and it proposes to toll an existing road—never an easy thing to do in terms of local public opinion, so I commend it for being prepared to take difficult decisions. But with all the schemes that we have said today we will support, it is only appropriate that we sit down with local authorities, go through the numbers, go through the specifications and see whether there is any more cost to be driven out. Some schemes are sitting in the Department’s books with an estimate of costs that was made in 2007. A lot has changed in the contracting market since then, and we want to ensure that right the way down the supply chain everyone is feeling the pressure that we are feeling as public spending is constrained—that we get the very best value for every pound of taxpayers’ money. We will work with the local authority to ensure that that is the case.

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

The decision to postpone the work on junction 30 will be met with much dismay by my constituents in Thurrock, whose road network is very regularly clogged up by congestion caused by junction 30. It is also a major cause of disruption for users of the Dartford crossing. In view of that, does my right hon. Friend really think it fair to be considering increasing charges for the Dartford crossing?

[Mr Hammond]

Yes. My right hon. Friend is referring to junction 30 of the M25, a scheme that we cannot envisage being able to finance during the current spending review period but on which we will continue to do work with a view to development in future spending review periods. She will be aware of the interface with the proposals for the port development being progressed by Dubai Ports World, whereby funding contributions may be available to support some of the junction 30 improvement at some point in the future, depending on the progress of the port development. So the position with that project is slightly more complex.

[Mrs Jenny Chapman (Darlington) (Lab)]

I am pleased to hear Government Members, particularly the right hon. Member for Berwick-upon-Tweed (Sir Alan Beith) and the hon. Member for Thirsk and Malton (Miss McIntosh), arguing in favour of the upgrading of the A1 north of Leeming. It is a crucial link for economic development in the north-east, and my constituents can conclude only that the Government looked at the link and decided that the north-east just is not worth it.

[Mr Hammond]

The announcements made both today and last week by my right hon. Friend the Chancellor have contained significant investments in the north-east, but I have to tell the hon. Lady that we consider all these schemes objectively. From memory, I think that the A1 Leeming to Barton scheme had a benefit-cost ratio of less than two, and it is not a scheme that we can envisage being able to fund in the current circumstances during this spending review.

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

My constituents will warmly welcome the planned improvements to the M25 between junctions 23 and 27, which will play a significant part in our regeneration plans along the eastern corridor. Will my right hon. Friend also consider taking representations both from the local authority and me, as we are keen, with an eye to the future, to see the northern gateway access road, which will additionally provide greater infrastructure for our growing needs?

[Mr Hammond]

I hope that my office told my hon. Friend that I visited the M25, including junctions 23 to 27, this morning, and jolly wet, windy and congested it was, so I am sure that the scheme will be most welcome. I am not aware that we have received a funding bid for the northern gateway scheme. As I said earlier, speculative schemes that are not already in the system will now have to wait until we announce a further round of bidding, and then there will be an opportunity to bid for further schemes in future spending review periods.

[Mr Stephen Hepburn (Jarrow) (Lab)]

I am sure that the Secretary of State will understand my disappointment that the junction schemes on both sides of the Tyne tunnel have been shelved for the time being. Those junctions are important. The Tyne tunnel is in the process of being dualled, which will encourage substantially more traffic in the area, and the junctions are needed to keep the traffic flowing. Will he meet me and my hon. Friend the Member for North Tyneside (Mrs Glindon), whose constituency is also affected by the increase in traffic, so that we can discuss these issues?

[Mr Hammond]

I am happy to receive a representation from the hon. Gentleman. Of course, the promoting local authority must be the primary conduit for contact with the Department, but if he wants to meet me, I am happy to talk to him.

[Stephen Williams (Bristol West) (LD)]

I welcome the fact that value for money is being confirmed for the Bristol bus rapid transit scheme from Ashton Vale, which is in your constituency, Madam Deputy Speaker, to Bristol Temple Meads, which is in mine. However, following what the Secretary of State said earlier about localism, will he agree to look favourably on local authorities such as Bristol that wish to introduce a levy on workplace parking in the future, so that money raised locally can be matched with the limited resources that are now available nationally?

[Mr Hammond]

Where local authorities wish to impose workplace parking levies, they need the Secretary of State’s approval under current legislation. It is, of course, up to local authorities to promote such schemes if they feel that they are appropriate for their areas, but I have said recently that I would expect any further schemes proposed to me to demonstrate that they have properly and effectively consulted local businesses and addressed any proper concerns raised by local businesses during those consultations. So perhaps my hon. Friend can feed that back to Bristol city council.

[Rachel Reeves (Leeds West) (Lab)]

The Leeds rail growth package included a new railway station at Kirkstall Forge. Half of the money was to come from the private sector and would have facilitated private sector housing and business development, bringing hundreds of jobs and homes to one of the most deprived parts of the city. Why has the scheme, which the right hon. Gentleman says is good value for money, been sent back to the drawing board, with devastating prospects for jobs and homes in my constituency?

[Mr Hammond]

Dear, dear, it must be my ears again. I did not hear the hon. Lady mention the Leeds station southern access scheme, which has been approved—[Interruption] If I may say so to the hon. Lady, when one’s constituency is in a city, I think one will find that the effects of transport infrastructure improvement are a little wider than the narrow boundaries of a single constituency. Leeds station southern access scheme has been approved, and two further Leeds schemes, the Leeds rail growth package and the Leeds new generation transport scheme, have been included in the development pool, where we will work with the local authority to look at how we can ensure value for money and get the schemes into the best and most competitive form that they can be, after which we will make a decision on the allocation of the scarce capital that is available. I want to remind the hon. Lady one more time that the transport capital budget has been reduced by 11% for the next four years. The Government formed by her party before the last general election proposed to reduce capital spending by 50%.

[Julian Sturdy (York Outer) (Con)]

I thank the Secretary of State for the improvement that he has made to fairer transport funding for my region, Yorkshire and Humber. May I ask him about the time scales for best and final funding bids for the schemes in the development pool? Will he look closely at the Access York park and ride bid, which will be crucial to the local economy?

[Mr Hammond]

Access to York park and ride is included in that group of schemes. As I announced earlier, we intend to take decisions on which of those schemes will be funded by the end of 2011. We will work proactively with the local authorities sponsoring those schemes from now, and we will make decisions as we are able to do so, not necessarily in a single announcement at the end of 2011. It may be possible to announce some conclusions earlier than that.

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

To try to take the positives out of the statement, I welcome the go-ahead for Sheffield’s PFI highway maintenance scheme and the amber light for the additional vehicles for Supertram. I understand that the passenger transport executive has proposed that the scheme should go hand in hand with the tram-train trial, as there will be cost savings from purchasing the vehicles together. That scheme is not mentioned in the statement. It could utilise under-used rail lines, get vehicles into the heart of the city and act as a pilot for the rest of the country. Will that scheme go ahead as well?

[Mr Hammond]

I understand that my ministerial colleagues are aware of the scheme to which the hon. Gentleman refers and are actively looking at it, but it is the Supertram additional vehicles scheme that has been included in the development pool. If it is clear that there are synergies from linking this scheme to another scheme, it makes sense to examine that. I want to be pragmatic. If we can save money, I would certainly like to look at the opportunities to do so.

[Anne Marie Morris (Newton Abbot) (Con)]

Although I am delighted to see that so many schemes have been approved for Devon, I know that my constituents and those in Totnes and Torbay will be disappointed that the Kingskerswell bypass is only in the pre-qualification pool, because the value for money is not clear. Will the Minister meet me and representatives of the other two constituencies and Devon county council to go through the criteria that the Treasury and the Department for Transport have set out, so that we can understand why value for money is not clear and make the right representations?

[Mr Hammond]

My hon. Friend might have slightly misunderstood the pre-qualification pool. It is not that the Kingskerswell bypass does not meet the value for money criteria; it is that the Department does not have an up-to-date appraisal of the scheme. It will therefore now carry out a rapid assessment in which value for money will be one of the primary considerations. There will be opportunities for her local authority to engage with officials in the Department—I am sure they are already engaged. I know that she has had discussions already with my the Under-Secretary, my hon. Friend the Member for Lewes (Norman Baker), and I am sure he would be happy to have further discussions with her.

[Alex Cunningham (Stockton North) (Lab)]

The cuts mean dark days ahead for the north-east, and they will be even darker now, with the decision to axe the Durham and Stockton street lighting PFI scheme, which would have made our streets lighter, brighter and safer. Why is the north-east and my constituency, which has already lost its new hospital and Building Schools for the Future programme, in the Government’s sights for yet another major cut?

--- Later in debate ---

[Mr Hammond]

We have confirmed the massive funding for the Nexus metro upgrade. The issue is not about cuts, but about investing where the best value for money can be delivered, and the Tees Valley bus scheme will be accelerated to provide additional and early support to the towns in the Tees valley. The PFI scheme to which the hon. Gentleman refers is simply no longer affordable. These PFI schemes, as he will know, are very expensive and would involve the Department committing for 30 years to a significant revenue stream, which it is just not sensible and prudent in the current environment.

[Stuart Andrew (Pudsey) (Con)]

I thank my right hon. Friend for the statement and, particularly, for his investment in the southern access to Leeds station, which will help to regenerate the southern part of the city. When he assesses the trolley bus system, will he look at the fact that, when it comes to an integrated transport system, Leeds has been led down the garden path for the past 20 years? I ask him to give significant consideration to that, because once people get into Leeds we need to get them around the city.

Secondly, I support some of the comments that the hon. Member for Leeds West (Rachel Reeves) made—perhaps not in the same way as I would have—with regard to the Kirkstall Forge and Apperley Bridge project, which would not only release significant amounts of private investment, but help to relieve significant congestion in some of the busiest parts of the city.

[Mr Hammond]

Both schemes to which my hon. Friend refers are in the development pool, and I urge him to urge his local authority to engage very seriously with that process, to sharpen the pencil, to think innovatively and to come back with a funding bid that puts those schemes in the vanguard and ensures that they are funded when we appraise the bids

[Bill Esterson (Sefton Central) (Lab)]

I welcome the news that the Thornton to Switch Island relief road will be funded, but will the Minister clarify what he means by revised funding bids from local authorities? Sefton council has already put almost £6 million towards the project and is “maxed” up to the limit, so to speak, so it is difficult to see how it could find further funds. However, in response to an earlier question the Minister said that money might be released from savings elsewhere. Could that money be used to reduce Sefton’s overall bill? Does he see it going up or down?

[Mr Hammond]

I can safely say that any local authority that comes back with a revised bid offering less local contribution is unlikely to be looked upon favourably. The Thornton to Switch Island link is a very high value scheme, delivering staggeringly high benefits for every unit of cost, but even so it is right that we sit down with the local authority and look at the cost estimates. As I said a few moments ago, some were done at a time when the contracting market for construction works was much firmer than it is now, and we must ensure that every opportunity to drive out cost and drive up value for the taxpayer has been taken. That is what the process will be. It will not take very long, because we expect to be able to undertake the work over the next couple of months and to confirm funding in January.

[Several hon. Members]

rose—

--- Later in debate ---

[Mr Marcus Jones (Nuneaton) (Con)]

I welcome the statement and the Government’s commitment to invest in our transport infrastructure. In doing so, I should like to be a little parochial, however, and mention the Coventry-Nuneaton rail upgrade, which will be extremely important in opening up further job opportunities for my constituents in Nuneaton, many of whom depend on Coventry for their employment. Is the Secretary of State willing to meet me to discuss that vital project, along with officials from Warwickshire county council?

[Mr Hammond]

That is the third representation that we have had on the Coventry-Nuneaton rail upgrade this afternoon. I would be very happy to meet my hon. Friend, and may I tempt him to include Opposition Members who have an interest in this? He and they are welcome to come along and talk about it.

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

Does the Minister understand the concern that he will cause in Luton and the surrounding areas by his shelving of the A5-M1 link road to the north of Luton, which is vital not only for improving transport but for solving our housing problems? Those housing problems will be even more acute in the coming years because of the coalition’s policies, which will force London residents out to places such as Luton.

[Mr Hammond]

The A5-M1 link road has not been shelved: it is a scheme on which we will do further development work. From memory, the issue involves the possibility of a significant developer contribution and the building of the road will open up significant amounts of developable land. We will need to do some further work to ensure that we extract the maximum possible developer contribution and that the public purse is not left to pick up a cost that should properly be borne by the private sector.

[Mr Mike Hancock (Portsmouth South) (LD)]

May I declare an interest as a member of Portsmouth city council? I thank the Secretary of State for his statement and commend to him the scheme for the Tipner interchange, which is in the pre-qualification pool. This scheme already has planning permission and is up and ready to go. It would generate thousands of jobs and create up to 2,500 homes. May I ask for the rapid transportation of that scheme from the qualification pool to the development pool in January, so that we can have a decision in the middle of next year?

[Mr Hammond]

If the fundamentals of the scheme justify its promotion to the development pool, it will be so promoted.

[Mrs Mary Glindon (North Tyneside) (Lab)]

I thank the Minister for agreeing to meet my hon. Friend the Member for Jarrow (Mr Hepburn) and me, and I welcome the upgrade of the Tyne and Wear metro, but people need jobs to travel to. The A19 corridor is crucial to the north-east’s economic development. Given the importance of the tunnel opening in 2011 and the two junctions on either side being improved, will the Minister increase the size of the meeting to include some business people and councillors who will also be able to make that case ably?

[Mr Hammond]

I am always happy to hear from the business lobby and the most convincing arguments often come from members of the business community. The hon. Lady makes the case that investment in transport infrastructure is good for economic development, job creation and inward investment. We know all that; the problem is that we have to prioritise the capital funding that we have available. The only fair way to do that is to look at the value for money that different schemes return for taxpayers’ funding and ensure that we prioritise them accordingly.

[Robert Halfon (Harlow) (Con)]

Harlow commuters will welcome the expansion of the M25 up to the M11, but the Minister will be aware of my Westminster Hall debate earlier this year in which I called for an extra M11 junction, which our town desperately needs. It would cost up to £25 million, and Essex county council is undertaking a £500,000 study of that project. What hope can he give my hard-pressed commuters that that scheme will be considered in the future?

[Mr Hammond]

I commend my hon. Friend for his tenacity. I know that he campaigned on this issue for many years before he arrived in this place, and he will no doubt continue to campaign on it for many years to come. The scheme is not currently on the list that I have published today and, as I have said to other hon. Members, it will be some time before we open the list to additional bids for future spending review periods. I do not want to encourage local authorities to spend significant sums of taxpayers’ money on schemes that I know we will not be able to fund in the foreseeable future.

[Phil Wilson (Sedgefield) (Lab)]

On “Question Time” last week, the Secretary of State raised expectations in the north-east on the Intercity Express programme and the potential for the building of a factory by Hitachi in Newton Aycliffe in my constituency. How long will we have to wait for a decision on that? It has raised expectations in the area, but will we get a response before Christmas?

[Mr Hammond]

I hope so. I said at the beginning of my statement, but perhaps I was being obtuse, that other major rail projects are under consideration, and I hope to be able to make an announcement to the House in the next few weeks. The Intercity Express programme is one of those under consideration. As the hon. Gentleman will know, it is an extremely complex package of projects, and the new bid that we have received from Agility Trains requires careful analysis at a technical, financial and legal level. That work is ongoing, and once we have completed it, I will be in a position to make an announcement.

[Dr Sarah Wollaston (Totnes) (Con)]

The Kingskerswell bypass in my constituency has been tantalisingly close to approval for half a century, which must be a record. I am grateful to the Secretary of State for agreeing to meet a delegation from Devon and Torbay councils, because the scheme is vital to regeneration for three constituencies. What further evidence should they bring to that meeting to press their case?

[Mr Hammond]

As I hope I have made clear, the process for the appraisal of projects is pretty rigorous, and will be based on the cost-benefit analysis and the external non-monetiseable effects of the scheme. If my hon. Friend looks on the Department for Transport’s website, she will find chapter and verse on how we do it. Of course I will always be happy to talk to hon. Members about their schemes, but I can assure her that the process for appraising schemes in the pre-qualification pool will be done rapidly and objectively, and the best schemes will move up into the development pool for consideration for funding next year.

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

Will the Secretary of State now publish the assessment to which he alluded earlier of the A453 in Nottinghamshire, which he suggested was on a lower value-for-money assessment? That is certainly not the feeling of Members on both sides of the Chamber. Although it might have the hallmarks of a country lane, it is a massive priority for businesses in the east midlands, and he is leaving them with the impression that he has no plans for jobs or growth.

[Mr Hammond]

I do not think that is the impression that businesses in Nottinghamshire will have been left with. I know the A453 very well, and I am well aware of the problems that occur in the area. The Under-Secretary of State for Transport, my hon. Friend the Member for Hemel Hempstead (Mike Penning), who has responsibility for roads, has already made a commitment to the House that we will in due course publish the business cases for both successful and unsuccessful schemes, so that Members can understand exactly how we have arrived at our conclusions.

[Several hon. Members]

rose—

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

I want quickly to congratulate the Secretary of State on how much he has achieved for transport in these straitened economic times. In particular, I welcome his commitment to the Heysham port to M6 link road, which I assure him has the full support of Lancashire county council and Lancaster district chamber of commerce. Will he assure me that his Department will be as proactive as possible to ensure that we see a completion date for this scheme, which has been on the table for the past 30 years?

[Mr Hammond]

Yes.

[Madam Deputy Speaker]

Thank you, Secretary of State. I call David Rutley.

--- Later in debate ---

[David Rutley (Macclesfield) (Con)]

What view has my right hon. Friend’s Department formed of the long-term prospects of the south-east Manchester multi-modal strategy, the A6 to Manchester airport relief road? Will he set out what steps he will be taking to review the relative merits of that scheme?

[Mr Hammond]

My ministerial colleagues are telling me—there are a lot of schemes to file in our minds—that this was going to be a private finance initiative scheme. However, PFI funding will no longer be available in the way it was, so if the scheme is to go forward, it will need to be resubmitted for conventional funding.

[David Mowat (Warrington South) (Con)]

Like Members on both sides of the House, I am delighted that the Secretary of State has found the money for the Mersey Gateway. However, the fact that it will be tolled—it has not been historically—will divert large amounts of traffic through inter alia my constituency. The level of traffic that will be diverted is sensitive to the toll set. Will he assure us that his Department will do what it can to ensure that the toll is not used to raise additional money over and above that needed to construct the bridge, and is not increased as part—

[Madam Deputy Speaker]

Order. Thank you very much. Will the Member please resume his seat? I think the Secretary of State got the gist of his question. It was not brief though.

[Mr Hammond]

I understand my hon. Friend’s concerns. This issue must of course primarily be a matter for the promoter of the scheme, which is Halton borough council. However, I am not sure that the local authority is totally unconstrained in setting a charge for the bridge, which will have to be related to the costs of delivering the scheme, so I will check that and write to my hon. Friend.

[Martin Vickers (Cleethorpes) (Con)]

It is disappointing that the two schemes affecting the port of Immingham will not proceed in the immediate future. Can the Secretary of State give me an assurance that if the south Humber gateway project, which was granted planning permission only two weeks ago, proceeds more quickly than anticipated, he will seriously consider bringing forward the A160 upgrade?

[Mr Hammond]

At least one of the schemes to which my hon. Friend refers is in the development pool. We will continue, as I hope he will, to work with his local authority to sharpen the bid and ensure that the scheme is viable for funding when we look at such matters in 2011.

[George Eustice (Camborne and Redruth) (Con)]

One of the projects that is currently in the pre-qualification pool is the Camborne and Redruth transport package, which would unlock the potential for regeneration and create 6,000 new jobs. Can the Secretary of State give an assurance that those projects that have today been announced as being in the pre-qualification pool will not be disadvantaged by joining the development pool at a later date, should that happen?

[Mr Hammond]

Yes I can give my hon. Friend that assurance. The intention is to carry out the pre-qualification assessment over the next three months, with a view to some schemes moving from the pre-qualification pool to the development pool in January 2011. That will give them plenty of time to make their case for funding before the end of 2011, when the decisions are taken.

[Madam Deputy Speaker]

Thank you. That was 43 Members contributing, but it would have been easier if they had all been brief.

Points of Order

Lord Hammond of Runnymede Excerpts

Tuesday 26th October 2010 Commons Chamber

[Madam Deputy Speaker (Dawn Primarolo)]

That is not really a point of order for me in the Chair. However, the hon. Gentleman has got his point on the record, and I understand that the Secretary of State wants to be helpful to him.

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

I, too, heard a reference to a copy of my statement having been received by one of my hon. Friends. I suspect that they were referring to the list, which was placed in the Vote Office a few moments before. As far as I am aware, no copies of the statement were distributed before I rose to speak.

[Madam Deputy Speaker]

Well, this is a matter that Mr Speaker can look at, and he can read the comments that have been made on the record. I do not know the answer at the present time, but I am grateful to the hon. Member for Eltham (Clive Efford) for bringing the matter to my attention.

I call Bob Ainsworth.

EU Transport Council (15 October)

Lord Hammond of Runnymede Excerpts

Friday 22nd October 2010 Written Statements

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

The first Transport Council of the Belgian presidency was held in Luxembourg on 15 October. The United Kingdom was represented by the Deputy Permanent Representative.

The Council reached a political agreement on the directive amending Directive 1999/62 on charging of heavy goods vehicles (the Eurovignette directive). The political agreement was acceptable to the UK.

Neither the existing directive nor the proposed amendment require the use of tolls or user charges but where member states choose to apply them they must respect the rules. The presidency had tabled a compromise proposal, the main elements of which were: to remove all requirements for mandatory hypothecation of revenues to transport projects, to remove the possibility of adding a supplement for congestion, while allowing significant variation of charges within the overall revenue limit; and to allow member states the choice not to apply tolls and charges to lorries below 12 tonnes.

Further modifications made by the presidency at the Council, included provision that the cleanest vehicles would be exempt from any external cost charges for four years after dates of application; and that EURO V and EURO VI standard vehicles would have a zero charge for air pollution until the end of 2013 and 2017 respectively; on the key issues for the UK (mandatory hypothecation and inclusion of vehicles under 12 tonnes) the text was acceptable.

The UK and Sweden entered a minutes statement, stating that in our view the directive should have been taken on a fiscal legal base.

The Council adopted a mandate authorising the Commission to open negotiations with Brazil on a comprehensive air transport agreement, with the aim of opening up traffic rights between the EU and Brazil. The UK supports the opening of negotiations.

There was an exchange of views on strategy and the future of transport 2010-2020, in advance of publication of the European Commission’s White Paper on transport policy, expected in December or January.

In the debate, member states supported the need to develop a more sustainable transport network. There was wide support for a financial framework to support infrastructure developments and intelligent transport technology (ITS) implementation, although some member states pointed out that the EU must not undermine domestic efforts to cut deficits. The UK highlighted the need to focus on areas with proven EU added value and ensure long-term fiscal stability. Major EU projects such as SESAR and Galileo should be completed on time and budget. Long-term priorities should be the full liberalisation of the single market, transport safety and security, recognising trade opportunities, and moving to a low-carbon economy.

Under AOB, the Commission presented a draft Council decision on the public regulated service of the Galileo satellite navigation programme. This should be ready to put to the Council early next year.

The Commission also presented a proposal for a recast of the rail liberalisation package, on which discussions in the working group have already started.

England's Transport System in Winter

Lord Hammond of Runnymede Excerpts

Friday 22nd October 2010 Written Statements

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

On 26 July 2010 I responded to the interim findings of the independent review panel examining the resilience of England’s transport systems in winter. The panel are publishing their final report today. I would like to thank David Quarmby CBE (chair) and his fellow panel members Brian Smith and Chris Green, for their further thoughtful analysis and recommendations. Copies of the review have been placed in the Libraries of both Houses.

As today’s report notes, much action has already been taken by local and national highway authorities, salt suppliers, Government and others to help keep our road network moving in the event of snow and ice this winter. But as the previous two winters have shown, we cannot be complacent.

Following July’s interim report, I immediately instructed the Highways Agency to build up a national strategic salt supply of last resort. I am pleased to report that the Highways Agency has made arrangements for the import of 250,000 tonnes of salt which is expected to start arriving this month. I am in full agreement with the panel’s view that this should be considered as a short-term reaction to current exceptional circumstances following two successive severe winters.

I therefore welcome the recommendations to improve resilience in salt supply in the longer term through: greater efficiencies in salt utilisation; increased throughput flexibility by suppliers; a new recommended standard of 12 days (48 runs) pre-season stockholding by local highway authorities; and regular monitoring of the national stock position. I urge all parties to take forward the recommendations that relate to them.

The Department for Transport has already been monitoring the national salt stock position in the run up to winter, in order to help highway authorities and suppliers to make better informed decisions. Working with the UK Roads Liaison Group the Department has also commissioned the production of technical guidance for local highway authorities on standards and methods to reduce the utilisation of salt without compromising effectiveness. This guidance, which will be available from the end of this month, will help to ensure that salt is spread at appropriate and effective levels, but not over-spread, thereby helping to conserve stock as well as reducing costs to local highway authorities. Today’s independent report also highlights the economic and social costs of winter disruption, which highway authorities and others will wish to consider when making their future local investment decisions.

I note the review panel’s conclusion that the rail industry had learnt valuable lessons from the winter of 2008-09 and overall coped well with the severe weather in 2009-10. I agree that the industry can improve performance further still by considering the additional measures around emergency timetables, technical improvements, and ensuring that the industry works closely with local highway authorities regarding responsibilities for de-icing key areas.

The report notes that the aviation industry generally anticipates and manages the effects of severe weather to a very high standard of resilience and is already pursuing measures, including additional resilience around the supply of de-icing materials. I welcome the recommendation that the Civil Aviation Authority should consider improving the availability of performance information for passengers and the market.

Across all modes of travel, the report acknowledges the importance of communications in extreme weather for the travelling public. I agree with the panel that those delivering transport services should continue to look to the opportunities that advances in technology may provide to improve communications with their customers.

Finally, in response to public concerns about the fear of litigation and following a recommendation in the panel’s interim report, the Government are today publishing brief guidance for households and traders who wish to clear snow and ice from paths in front of their property, pavements and other public spaces. I hope that this will empower those who wish to act in a neighbourly way.

EU Transport Council - 15 October 2010

Lord Hammond of Runnymede Excerpts

Thursday 14th October 2010 Written Statements

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

The first Transport Council of the Belgian presidency will take place in Luxembourg on 15 October.

The Council will be asked to reach a political agreement on the directive amending Directive 1999/62 on charging of heavy goods vehicles (the Eurovignette directive). The directive governs the taxation of lorries, including rules for the charging of access to road infrastructure where member states choose to do this. The proposed amendments include the removal of references to mandatory hypothecation of revenues and proposals to allow charges to be set flexibly within the overall cap to reflect externalities in areas and at times when there is congestion. We strongly support the former and believe the latter represents an acceptable approach to dealing with congestion. The amendments will also include proposals to allow member states discretion not to include goods vehicles weighing less than 12 tonnes in charging schemes—reflecting the fact that few such vehicles are involved in international traffic—and some limitation of the Commission’s powers to propose amendments to minimum and maximum rates using delegated acts. In particular the Commission’s power to increase the minimum rates of lorry circulation taxes, such as goods vehicle VED, has been removed. We support both of these proposals

We remain concerned that this directive, which impacts on national charging regimes and hence on tax, rests on a transport legal base and will continue to press our position that these issues should be agreed by unanimity. We will also continue to press the case for increasing maximum daily rates for time-based charging.

There will be an exchange of views on strategy and the future of transport 2010-2020. This will give Ministers an opportunity to set out their position on issues expected to be covered in the European Commission’s forthcoming White Paper on transport policy, prior to the more detailed analysis which will follow publication. I will reiterate the UK’s commitment to climate change mitigation measures in transport and to better regulation across the board.

The Council will be asked to adopt a mandate authorising the Commission to open negotiations with Brazil on a comprehensive air transport agreement. The Government support the opening of negotiations on such an agreement.

Under AOB the Commission will present their recent legislative proposal to recast the first rail package. There will be no substantive discussion.

Among items for adoption without debate (“A points”) the Council is expected to adopt conclusions on applications of the European global navigation satellite systems.

Interim Report on Salt Supply and Use

Lord Hammond of Runnymede Excerpts

Monday 26th July 2010 Written Statements

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

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. An independent review of the transport sector’s response to last winter was commissioned by my predecessor as Secretary of State and I have asked David Quarmby CBE, who leads it, to continue that work.

The review panel’s interim report is being published today; and I am grateful to David Quarmby, Brian Smith, Chris Green, and those who have supported them, for their thoughtful and forthright analysis and recommendations. Copies of the interim report have been placed in the Library of the House.

The interim report concentrates on actions that can be taken by local and national highways authorities, salt suppliers, Government and others to improve resilience of the highways network for the coming winter as well as some longer-term actions. There is much in this report on which all of these groups will want to act urgently to ensure that disruptions to highway networks are minimised in the event of another severe winter.

For my part, I have tasked my officials to take forward, as a matter of priority, the recommendations relating to the Department for Transport and the Highways Agency.

I welcome the recommendation that the Highways Agency should build up a strategic salt supply of last resort for 2010-11, given the particular re-stocking challenges for local highway authorities for this coming winter. I have instructed the Highways Agency immediately to consider how arrangements could be implemented to source a volume of imported salt to establish and manage national strategic stockpiles of up to 250,000 tonnes.

In taking action to create strategic salt reserves for the 2010-11 winter season, the Highways Agency will clearly need to take account of the constraints imposed by the availability of salt from overseas and immediate storage facilities. It is important, as the review makes clear, that local highway authorities do not treat the possibility of such a supply as absolving them from the need to make appropriate provision for their highway networks. I urge local highway authorities to take forward the recommendations that relate to them.

The experience of last winter has shown that adopting standards and methods which reduce the utilisation of salt without compromising effectiveness will both reduce vulnerability to salt supply problems and reduce the cost to the local highway authority. It is therefore vital that authorities share best practice across the sector and my Department will discuss with the UK Roads Liaison Group how best we can support this aim for this winter and in the longer term.

Although highway authorities have a duty, as far as practicable, to keep their highways clear of snow and ice, it was clear from last winter that many members of the public were keen to show community spirit in clearing the footways outside their property. It was equally clear, however, that many were uncertain of their rights and liabilities if they were to act in this way. The interim report recommends (as does a recent report by the Local Government Association) that the Department for Transport should produce a brief guide to help the public understand this area of the law. I have tasked my officials to produce this by the end of October, not in the spirit of laying down what people should or should not do, but in the spirit of empowering those who wish to act in a neighbourly way.

The review panel’s work is not at an end. As well as undertaking further analysis to support longer-term actions to improve resilience in salt supply, they are also turning their attention to other transport modes. I look forward to receiving their final report, which they intend to publish in the autumn, in due course.

High Speed 2 (Exceptional Hardship Scheme)

Lord Hammond of Runnymede Excerpts

Monday 26th July 2010 Written Statements

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

The Government are committed to the establishment of a high-speed rail network as part of their programme of measures to create a low carbon economy. However, in developing plans for a new high-speed line, both I and my predecessor as Secretary of State for Transport have been mindful of their potential impact on those who live on or close to the proposed line of route.

It was for this reason that the previous Government launched a consultation on a potential exceptional hardship scheme to provide assistance for those who have been most severely and immediately affected by the preferred route option for a new line between London and the west midlands set out in the recent report by HS2 Ltd. This consultation closed on 17 June. Around 4,500 responses were received. This statement sets out my response.

It is clear from the responses to the consultation that there is overwhelming support for a scheme to be introduced to provide assistance for those most severely affected by HS2 Ltd’s proposed line. I can therefore confirm that an exceptional hardship scheme will be introduced, and that it will be open to applications from Friday 20 August.

The introduction of the scheme recognises the unique nature of the proposed line, which is only the second high-speed rail project to be considered in the UK and which differs significantly from its predecessor in terms of its design, operation and potential market. It should therefore not be taken as setting any precedent for future infrastructure schemes.

Respondents to the consultation also made many suggestions as to how the terms of the scheme might be altered. I have considered these and have made the following changes from the scheme put forward for consultation. First, the scheme will be widened to include owner-occupiers of agricultural units and commercial properties with an annual rateable value not exceeding £34,800; this brings it in line with the blight provisions under the Town and Country Planning Act 1990. Secondly, the scheme will also be able to cover properties recently inherited following a bereavement and repossessed properties that the original owner urgently requires the bank or other lender to sell to realise some value.

A number of respondents asked for the scheme to be extended to properties over tunnelled sections of the proposed line of route. It is my view, however, that any blighting effects over tunnels are likely to be limited, and this is reinforced by the additional information note on the effects of tunnelling which HS2 Ltd has published on its website today. However, I accept that there is a need to make special provision in relation to properties close to the proposed entrances and exits of tunnels. I have therefore decided to extend the scheme to cover these properties.

Finally, I have decided that the panel which makes recommendations to me on applications to the scheme should have a majority of independent members, although this will not be the case for the shadow panel announced in my written ministerial statement of 27 May 2010, Official Report, column 15WS.

In other respects, the scheme will operate as set out in the consultation document. In particular, the scheme will apply only to properties on or in the vicinity of HS2 Ltd’s route option 3. HS2 Ltd’s report makes a clear recommendation and it is therefore my view that assistance of this kind should be focused on this route, where the blight impacts will be most severe. It is also my conclusion that, to minimise the risk of blight spreading as a result of a scheme of this kind, it should be limited to those who have a pressing need to sell and who would otherwise experience exceptional hardship.

A large proportion of consultation responses also raised issues in relation to longer-term provision to address blight. If a decision is taken following public consultation to proceed with a new high-speed line and to safeguard the route that it would follow, statutory blight arrangements would come into force covering those properties which would have to be acquired in order to build or operate the new line. However, many respondents suggested that additional provision would be needed to cover those properties which would not have to be acquired but which might still be seriously affected by the construction or operation of the line. Respondents also made a number of proposals for how such provision might be structured. I am aware that provision of this kind has been made in respect of a number of previous schemes in both the public and private sectors.

I am mindful of the importance of appropriate longer-term arrangements to assist those who would be most seriously affected by a new line. I agree that some additional provision over and above the statutory blight regime will be needed to achieve this, and it is therefore my intention that this should be put in place, if and when a decision is taken to safeguard a route.

The specific issues raised in response to the consultation, particularly in respect of the different models for operating such arrangements, are complex and require detailed consideration. I have therefore asked my officials to provide me with further advice on options for the terms and conditions of such additional provision and how it should operate. I will report to Parliament on my proposed way forward in the light of the spending review outcome and before public consultation on the Government’s strategy for high-speed rail and the route of any new high speed line.

I have placed copies of the analysis of responses to the consultation and a list of frequently asked questions about the scheme in the Libraries of both Houses.

Oral Answers to Questions

Lord Hammond of Runnymede Excerpts

Thursday 22nd July 2010 Commons Chamber

[Chris Skidmore (Kingswood) (Con)]

2. What steps he is taking to make Britain’s railway system more financially viable.

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

Sir Roy McNulty’s review of value for money on the railway has produced a scoping study that identifies that the UK’s railway is, prima facie, up to 40% more expensive than railways elsewhere in Europe. We must adjust to a world in which our aspirations for a successful railway have to be met from within a much tighter public spending envelope. I have therefore asked Sir Roy to accelerate his work looking at the drivers of cost across the industry, and to produce recommendations for creating a sustainable railway with growing passenger usage and declining subsidy.

[Chris Skidmore]

According to the parliamentary report “Transport in the South West”, the south-west has been hit with an increase in the price of unregulated fares. The report states that some rail fares between Swindon and London—a distance of only 77 miles—are the highest for a comparable distance anywhere in Europe. Will my right hon. Friend consider the impact of unregulated fares, especially in Bristol and my constituency of Kingswood, in future rail policy decisions?

[Mr Hammond]

I am grateful to my hon. Friend for that question. About 60% of rail journeys are undertaken using regulated fares, which are governed by the formula imposed by the Department for Transport, but my right hon. Friend the Minister of State has today initiated a consultation on future franchising strategy, and we can certainly take my hon. Friend’s representation as a response to that consultation.

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

The inefficiencies identified by Sir Roy McNulty must be addressed as a matter of urgency, but does the Secretary of State agree that passengers, and indeed freight, must not be priced off the railway, and that essential investment, such as electrification, must go ahead?

[Mr Hammond]

I am grateful for the hon. Lady’s support for the review and the work that Sir Roy McNulty is doing, and I am glad that she recognises the urgency of ensuring that our railway is affordable and sustainable, so that it can attract the investment that it needs. I agree with her that we need a sustainable railway with growing passenger numbers and growing freight usage.

[Mr David Evennett (Bexleyheath and Crayford) (Con)]

Would my right hon. Friend agree that we want a sector that not only is financially sound, but delivers a better quality of service for passengers?

[Mr Hammond]

My hon. Friend is, once again, absolutely right. The objective must be to have a railway that is responsive to the needs of its customers, generating viability by responding to those needs—in fact, a railway that does what businesses throughout the economy do if they are to be successful and sustainable.

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

I agree with the Secretary of State that a central issue for the financial viability of the railways is the Government’s future policy on fare increases. The coalition agreement commits the Government to fair increases in rail ticket costs. Will the Secretary of State confirm recent reports that he has proposed to the Treasury changing the formula on capped fares and season tickets for next year from the retail prices index plus 1% to as much as RPI plus 5%? Does he not understand how unfair and unreasonable a fares hike of up to 10% will be to millions of hard-pressed commuters across the country if he cannot give an assurance to the House that every penny in increased fare revenues will be reinvested in the new rolling stock and capital projects that our railway system so badly needs?

[Mr Hammond]

The hon. Gentleman got to the nub of the issue in his last sentence. The coalition agreement commits us to a policy of fair fares, and we are committed to ensuring that fares are fair for rail users. No decisions have been made as yet about future fare increases, but he correctly identifies that, as a result of the spending review precipitated by the fiscal crisis that we have inherited, there may have to be a trade-off between fares and continuing vital investment in our railway. I have said that it would be wrong to rule out, ahead of the spending review, any change to the fare policy.

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[Mike Crockart (Edinburgh West) (LD)]

6. What assessment he has made of the implications for his Department’s policy of Sir Andrew Foster’s report on the intercity express programme.

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

My statement to the House of 6 July announced that a decision on the future of the intercity express programme would be made as part of the spending review announcement in October, and that the Government would use the intervening time to pause for reflection and a fresh, detailed analysis, including a review of the alternatives in line with Sir Andrew’s recommendations.

[Mike Crockart]

I thank my right hon. Friend for his response, but given that the country and indeed his Department continue to suffer from significant budgetary pressures, would it not be better to cancel the IEP programme and extend the life of our InterCity 125 trains, which have performed very well over the years, so that we can continue to invest in matters such as upgrading track infrastructure and high-speed rail, which would deliver significant economic benefits?

[Mr Hammond]

The previous Government commissioned a report from Sir Andrew Foster, which has now been delivered. It was a detailed piece of work containing a lot of recommendations, and one of Sir Andrew’s suggestions was that we should review the possibility of an upgrade and life extension of the existing 125 fleet. That is one option that we will consider during the pause that I mentioned.

[Phil Wilson (Sedgefield) (Lab)]

If the intercity express programme survives the comprehensive spending review, Hitachi intends to build the trains in Newton Aycliffe in my constituency, creating hundreds of jobs there and thousands in the manufacturing supply chain. It would be one of the biggest investments in the north-east since Nissan. Would the Minister be prepared to meet me and a delegation of north-east businessmen and trade unionists so that we can get the point across about how important the scheme is to the north-east of England?

[Mr Hammond]

I am always happy to meet Members, and I would be very happy to meet the hon. Gentleman, but I can tell him that I met the president of Hitachi recently on his visit from Tokyo, and that I have met the Japanese ambassador, and they forcefully made the same points as him. We will of course take them into account.

I should perhaps say that Hitachi is also interested in other rail projects in the UK, and we have heard very encouraging signs that the company intends to establish a serious presence in the UK as part of our future rail infrastructure development.

[Sadiq Khan (Tooting) (Lab)]

The Secretary of State will be aware that as a direct result of our investment, more people are using our railways than at any time since the 1940s. That is good for the environment and for tackling congestion and all its consequences. Continuing with our programme of additional rolling stock will not only lead to more jobs but be good for British manufacturing and growth. It is also a good way to continue to encourage more people to leave their cars and use our rail network. Will he aggressively lobby the Treasury for more investment in rolling stock, rather than listen to some of his hon. Friends who want cuts in additional rolling stock?

[Mr Hammond]

I am not sure whether the hon. Gentleman is conflating the debate on the high-level output specification rolling stock programme with that on the intercity express programme, but once again he shows a failure to recognise the reality of the situation that we have inherited from the previous Government. We have to deal with the fiscal crisis facing this country and prioritise investment in matters that will support economic growth and the decarbonisation of the economy. We will do that job effectively, and he will hear the result once the spending review is announced in October.

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

7. What representations he has received on upgrading the A64 between York and Scarborough; and if he will make a statement.

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[Hugh Bayley (York Central) (Lab)]

12. What plans he has for the future of the franchise for the east coast main line rail service.

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

The Government intend to let a new franchise to return the operation of east coast main line rail services to the private sector. My right hon. Friend the Minister of State launched a franchising review this morning, seeking views on the most appropriate options to secure longer-term investment. In the meantime, services will continue to be provided by the East Coast Main Line Company Ltd, which the Department owns in its entirety.

[Hugh Bayley]

The headquarters of the east coast rail service has been based in York since the 19th century because logistically it is the right place to be. Will the Secretary of State examine the case for reducing uncertainty for the key business partners of the east coast train operating company by confirming that the new franchisee, when appointed, will be required to keep the headquarters of the business in York?

[Mr Hammond]

I appreciate the hon. Gentleman’s intervention on behalf of his constituents and I understand the concerns that the uncertainty will cause. However, it would be wrong, in view of the franchising consultation that my right hon. Friend the Minister has announced today, for me to start making prescriptive statements about what a future franchisee under an as yet undetermined franchising regime will be required to do.

[Peter Aldous (Waveney) (Con)]

13. What progress has been made on the Government’s review of rail franchising; and if he will make a statement.

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

There is a large and well-integrated Sikh community in the UK. Special arrangements to take account of their headwear have existed at least since the introduction of compulsory motorcycle helmets. On 29 April, the European Union altered the rules on the searching of religious headwear at airports, and this has provoked a furious reaction from members of the Sikh community. On 25 June, I instructed UK airports that they should temporarily revert to the previous arrangements, despite the EU rules. The Sikh community has recognised this positive step and we are now working with them and with the EU to identify a suitable way forward.

[Gareth Johnson]

I am pleased that my right hon. Friend is aware of the EU’s initiative that means that turbans can be searched and, indeed, unravelled by airport security officers. Does he agree that we need an approach that protects the security of travellers, but that also fully recognises the importance of turbans to the followers of the Sikh religion?

[Mr Hammond]

I do indeed agree with my hon. Friend. The ultimate solution probably lies in the introduction of scanners as a primary means of security screening at our airports. At the moment, that cannot be done under EU rules. Part of my discussion with the EU is seeking to persuade it that we can resolve the particular problems of religious headwear by addressing the wider issue of adopting scanners as a primary screening method.

[Mr Philip Hollobone (Kettering) (Con)]

16. When he expects to announce his Department’s decision on the planned widening by the Highways Agency of the A14 around Kettering.

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

Since I last answered departmental questions, we have announced a new framework for the economic regulation of airports; our south-east airports taskforce has commenced work; we have announced the sale of High Speed 1; and we have launched a £15 million fund to incentivise the purchase of low-carbon buses. I have also prepared and submitted a spending review bid to the Treasury.

[Dr Poulter]

I thank the Minister of State for her earlier answer in reply to my hon. Friend the Member for Waveney (Peter Aldous) in respect of recognising the importance of the East Suffolk line to the future prosperity of central and eastern Suffolk. Part of improving the infrastructure is a vital stretch of track called the Beccles loop, which would enable a future franchisee to run a full London to Lowestoft service. May we count on the Secretary of State’s support in pursuing the funding for that vital stretch of track?

[Mr Hammond]

Any future proposals for rail enhancements will be considered in the usual way in setting the output requirements for control period 5, which will define Network Rail’s investment programme from 2014 onwards.

[Sadiq Khan (Tooting) (Lab)]

More than 1 million Londoners are entitled to Labour’s freedom pass and more than 11 million older and disabled people in England are entitled to Labour’s concessionary bus pass. Pass holders have been made anxious by reports in the media of the submission made to the Treasury by the Secretary of State in relation to the comprehensive spending review. The CSR is three months away, so can he reassure those anxious older and disabled citizens that he has not submitted, in his job application/CSR bid, any change in the eligibility requirements for those who receive the bus pass?

[Mr Hammond]

The hon. Gentleman refers to two separate things. The arrangements in London are of course the responsibility of the Conservative Mayor of London, and I cannot answer for the decisions that he will make on the operation of the scheme in London. With regard to the national scheme, the Prime Minister and the Deputy Prime Minister have both made clear their commitment to the scheme in its current form. It is enshrined in primary legislation and we have no plans to change it.

[Andrew George (St Ives) (LD)]

T2. The Chancellor promised that the vulnerable would be protected from budget cuts, but I know that Ministers will be well aware that there has been much speculation about the future viability of the bus service operators grant, which is clearly essential to many marginal rural services, the sustainability of which would be called into question if that were to be in any way cut. What reassurance can Ministers give me and my constituents that those rural services, which are essential—

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[Mr David Hanson (Delyn) (Lab)]

T7. Has the ministerial team seen the comments by the hon. Member for South Suffolk (Mr Yeo) in which he called for the privatisation of motorways and a widespread increase in road tolling? Will Ministers rule out such proposals for the duration of this Parliament?

[Mr Philip Hammond]

The coalition Government have indeed ruled out the tolling of the existing road network for the duration of this Parliament.

[Tony Baldry (Banbury) (Con)]

T3. What are the Government going to do to make it safer for motorcyclists by improving the tests for motorcyclists? In particular, the last Government so reduced the number of test sites that we had the slightly ludicrous situation of motorcyclists who had not passed the test having to travel considerable distances on their motorbikes to take the test. So can we see some improvement in the test regime for motorcyclists?

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[Mr Speaker]

Order. This is Topical Questions, so one question—short and sharp.

[Mr Hammond]

I think I can gather the balance of the question, Mr Speaker. We well understand that the national strategic and economic benefits of the high- speed rail network have to be balanced against local environmental disbenefits. Of course, the project will be designed with maximum sensitivity in mind, and I am happy to tell my hon. Friend that I will be visiting the line of the proposed route in the summer recess.

[Alison McGovern (Wirral South) (Lab)]

Last week, I spoke to residents in Heswall in my constituency who are most concerned to get the train to Liverpool rather than their cars. The Wrexham to Bidston electrification project is vital for that. Will the Minister explain briefly what work her officials in the Department are doing to work with Network Rail, Merseytravel and others to take this vital project forward?

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

Will the Secretary of State respond to a letter that I received from a constituent of mine, Mr Rod East? He is 61 and has a concessionary bus pass. Plymouth city council will have to renew it in 2011 under the system it is operating. Will he please confirm his earlier statement that no changes to the concessionary bus pass will apply to Plymouth city council?

[Mr Hammond]

I can only repeat what I said earlier: we have no plans to change the national concessionary scheme. The Prime Minister and Deputy Prime Minister have both made very clear their commitment to the national scheme.

[Jo Swinson (East Dunbartonshire) (LD)]

T6. I welcome the Government’s commitment to high speed rail, particularly to encourage people to use rail instead of domestic air travel. Given the rising cost of rail compared with flying, what will the Secretary of State do to get the price mechanism right in order to get this shift from air to rail?

[Mr Philip Hammond]

The High Speed 2 project will introduce a massive increase in capacity. These will be huge trains, with 1,100 seats each, and they will run at a very high frequency. Simple demand-and-supply economics should help to keep travel affordable. At the same time, after 2012, aviation will come within the European emissions trading scheme, and the carbon costs of aviation will start to be reflected in the cost of flying.

[Katy Clark (North Ayrshire and Arran) (Lab)]

Will the Minister rule out reclassifying Network Rail as a public company, which would be a Railtrack mark 2, and commit to a not-for-dividend organisation?