Durham Tees Valley Airport

Alex Cunningham Excerpts

Wednesday 22nd November 2017 Westminster Hall

[Phil Wilson (Sedgefield) (Lab)]

I beg to move,

That this House has considered the future of Durham Tees Valley airport.

I applied for this debate to give support to Durham Tees Valley airport and the Peel Group, which plans to grow the airport. In the last decade or so, Durham Tees Valley has faced major difficulties, as have many other regional airports across the country. It has had to face the fact that the aviation industry has radically changed.

Durham Tees Valley airport started life in 1941 as an RAF base originally called Goosepool. In 1964, it became Teesside International airport, and it was renamed Durham Tees Valley airport in 2004. In 2003, the Peel Group purchased a 75% share in the airport, with the six local authorities sharing a 25% stake; today, it owns 89%. The Peel Group is a private sector investment group with a strong presence throughout the north of England.

In 2006, passenger numbers peaked at 910,000, with BMI flying a regular service to Heathrow. In 2007, the global recession hit the airport, as it did everywhere else. A year later, Flyglobespan, an airline using the airport, went into administration, which caused passenger numbers to fall by thousands. In 2009, BMI withdrew its Heathrow service, and passenger numbers fell from 645,000 to 288,000 in just 12 months. Durham Tees Valley was not the only regional airport to lose such a connection, as airlines sought to concentrate their remaining slots at Heathrow on more lucrative international routes. Passenger numbers today are between 130,000 and 140,000—almost a tenth of what they were a decade ago.

KLM’s flights to Schiphol three times a day and Eastern Airways’ flights to Aberdeen now account for the bulk of passenger numbers. The airport is currently making a loss of between £2 million and £3 million a year.

[Alex Cunningham (Stockton North) (Lab)]

My hon. Friend mentions the airport’s losses. The Tees Valley Mayor’s pledge to buy the airport has captured voters’ imagination. He told me he can do that without involving taxpayers’ money. Does my hon. Friend agree that it is now time for the Tees Valley Mayor to publish his business plan to buy the airport, complete with numbers and sources of funding, or just be honest about it and admit that he cannot deliver that promise?

[Phil Wilson]

The Tees Valley Mayor has a few questions to answer on this issue. I will come to that matter later in my speech, but I am pleased that my hon. Friend raised it.

Despite the losses and the low passenger numbers, there is still a strategic role for regional airports. There is a strong correlation between regional GDP, employment in air-intensive industries and aviation connectivity. Regional airports provide a major gateway for visitors to the region.

--- Later in debate ---

[Phil Wilson]

The air ambulance service, which is based at the airport, provides a great service for the area. Where I live, I can sometimes see it flying over to get to an incident. It is a great charity, and I want to see it grow and prosper there.

Regional airports support the business community, whose key needs from regional air services are an increase in destinations and the frequency of flights to major travel hubs such as Schiphol, access to major markets, and links to London and the south-east, especially Heathrow. A third runway at Heathrow airport is key for regional airports such as Durham Tees Valley, which has been listed as one of the regional airports that will have access to it.

Durham Tees Valley airport plays a much wider strategic role in the region. It has been consistently recognised as a key asset for the region in regional strategic plans and national reports such as Lord Heseltine’s independent report, “Tees Valley: opportunity unlimited”. The report also highlighted the importance for the Tees Valley economy of having international connectivity with its global trading partners, and highlighted the opportunities that the airport brings for logistics, freight and wider aviation-related services.

Durham Tees Valley can drive a major employment cluster of both aviation and non-aviation businesses in and around the airport. Regional airports typically have the space, capacity and environment to host such businesses in a way that larger passenger-focused airports cannot. Durham Tees Valley’s 800-acre site, known as Aero Centre Tees Valley, is a prime example of that. To unlock those investments, the airport needs the support of local and national leaders and public sector partners to create the right conditions for investment in public infrastructure. I would love to hear from the Minister what more the Government can do to help.

[Alex Cunningham]

As part of that connectivity, the airport needs a proper rail service. The railway line actually skips the airport, and there is no proper service serving it. Does my hon. Friend agree that the Minister can turn his attention to that as we look at rail infrastructure across the piece?

[Phil Wilson]

Again, my hon. Friend pre-empts something I am going to say in my speech. I will mention the rail link, because it is very important.

The airport can attract investment while taking into consideration trends in the UK regional airport sector. In the eight years between 2007 and 2015, the north-east of England was badly impacted by the global financial crisis, which affected the region’s economy and subsequently its demand for air travel. The north-east of England was the worst hit of all UK regions. Air traffic in 2015 was almost 1.7 million passengers per annum lower than in 2007 —a 26% reduction. The airport lost 592,000 passengers, representing about 80% of its traffic, and Newcastle airport lost about 20% of its traffic. The same trend was seen across the UK, particularly at smaller regional airports, as capacity was reduced or redeployed to major airports. However, no region was affected as much as the north-east.

This is not just about the north-east and Durham Tees Valley. This issue affects other regional airports throughout the country, but to a lesser extent. Passenger numbers have fallen dramatically in several regional airports. Prestwick airport lost more than 1.1 million passengers between 2009 and 2016—a 63% loss. Cardiff airport lost more than 280,000 passengers, and Bournemouth lost more than 200,000 passengers. The notable exception is Leeds Bradford, which saw significant growth over the period, achieved by heavy incentivisation, which resulted in ongoing losses. The last set of accounts, published in March 2016, showed a loss of £3.8 million.

In addition to suffering reductions in the passenger and freight tonnage numbers, a number of regional airports have encountered more fundamental problems over the period. In 2007, loss-making Plymouth closed. In 2013, the Scottish Government took loss-making Prestwick into public ownership. Since then, £40 million of public money has been invested in the past four years, but that has done nothing to stop the reduction in passenger traffic and continuing losses of about £9 million. Loss-making Cardiff was also taken into public ownership by the Welsh Assembly that year. Between 2009 and 2016 passenger numbers at the airport fell by 280,000, or 18%. In 2014, loss-making Manston closed, as did loss-making Blackpool as a full-service airport. For me, therefore—this is a key point—regional airports must seek a diversification strategy to ensure financial sustainability and to continue their wider role as economic catalysts, supported by public sector investment and infrastructure. That is the approach that the Peel Group is taking.

Besides KLM, Eastern Airways and Loganair, other users of the airport include Cobham Aviation Services, which has a training and testing contract with the Ministry of Defence; the Serco International Fire Training Centre, which is one of the leading aviation fire training centres in the world and has a 20-acre dedicated training site with simulators and the largest confined-space rigs in the UK; TNT, which operates a logistics operation out of a dedicated hangar; Thales, which is on site to operate delivery contracts related to air traffic provision for the armed forces; and Sycamore Aviation, which provides aircraft end-of-life services. Larger ad hoc passenger flights occur sometimes in the form of military charter flights, carrying troops based at nearby garrisons. A number of general aviation flying schools operate from Durham Tees Valley, using two or four-seat light aircraft. The number of business aviation flights is growing steadily, operating aircraft types that range from single-engine private to large transatlantic business jets. More than 80% of the operating costs of an airport are fixed, meaning that regardless of the passenger numbers the airport operation has a significant cost base.

The Airports Council International reports that in Europe 73% of airports handling fewer than 1 million passengers and 59% of those handling fewer than 3 million passengers are loss making. Recognition of challenging times and the need to prevent Durham Tees Valley from becoming yet another casualty led to the development of the airport master-plan by Peel. Published in 2014, it is designed to chart a path for the airport to 2020 and beyond.

Securing the future of aviation services is dependent on accepting the realism and rationale set out in the master-plan. In the plan, Peel understands that DTVA needs to concentrate on those aviation services in which it has strength, including building on those services that are important to the business community, such as flights to Schiphol and Aberdeen. A well-established general aviation centre provides scope for growth and, since the launch of the new master-plan, new companies have been attracted.

In 2015 Peel launched the Aero Centre Tees Valley, which is the umbrella brand showcasing the development opportunities available throughout the airport site. The Aero Centre offers a wide range of land and property opportunities and markets opportunities for aircraft hangarage of 290,000 square feet and general employment space of 3.5 million square feet. The Aero Centre is connected by rail and by the UK’s largest exporting port and its fastest moving commuter road network, which is on our doorstep.

Central to the strategy for aviation operations is the need to look at all possible means of generating other income streams by exploiting the potential of one of DTVA’s main strengths, which is its extensive land holdings. Airports that have succumbed to closure have not had that option and, without it, closure would almost certainly have become a necessity for Durham Tees Valley. To help finance the master-plan, provision was made for housing development on land north of the airport. The sale of the land for more than 300 houses will generate millions of pounds for Peel, 100% of which will be reinvested in the future of the airport.

[Alex Cunningham]

Will my hon. Friend give way?

[Phil Wilson]

I would love to get on, because I want to hear from the Minister.

The focus is on the north side of the airport, but the south side has great potential too. Peel believes that its master-plan has the potential, over time, to generate about 6,000 jobs. I believe that Peel has a plan, and it has shown commitment to the airport, which is proved by the investment of £38 million over the past 14 years or so. Peel has shouldered the airport’s losses while investing in capital infrastructure. The fact that it is prepared to invest 100% of the money raised from the land sale for housing proves its commitment for the long term. It is being realistic when it says that the focus of its air passenger strategy is those routes that provide for the business community, because that is where the strength is now, but at the same time it is doing what it can in a difficult market to attract leisure flights to the airport.

I believe that, for all the frustration the local community feels about the airport, there is a route out of the problems that it has faced. The master-plan is robust, and the airport supports 600 jobs, contributes £37 million gross value added to the Teesside and Durham economy and is a catalyst for economic prosperity.

Some have said that DTVA has been allowed to decline. As I have shown in my speech, however, it is not alone in the problems it has faced. Some say that fresh thinking is needed, but I believe that Peel’s master-plan is evidence of that. Some say that a practical and pragmatic approach is needed, but Peel is showing that too. I do not agree with those who say that the answer to all of the airport’s problems is to take it back into public ownership but, apparently, that is the view of the newly elected Conservative Mayor for Tees Valley.

First, the airport is not for sale. Secondly, Peel has invested and covered the airport’s losses of £38 million since 2003. The airport loses between £2 million and £3 million a year so, if a private sector company is willing to carry that financial burden while remaining committed to securing a sustainable future for the airport, why transfer the burden to the taxpayers of Tees Valley and Durham? I have no idea how much the airport would cost to buy, but I imagine that Peel would want some compensation for the millions of pounds it has already invested in the site. As the local MP, I have worked with Peel for the past 10 years, and they have not been easy times for the airport or regional aviation in general.

I am sick of the airport being used as a political football. It is time for grown-up politics. I want to see the airport work with the public sector, but I think we should support the owner in its plan and not seek to undermine it. I would say to the Mayor for Tees Valley: draw a line under any idea of nationalising the airport—as I have said, public ownership is not a panacea—and instead work with the Peel Group, become an ambassador for the airport and help us to secure its future. What I have learned in this job, if we really want to do something big for the local area, is not to grandstand, not to promise what cannot be delivered, and not to take the people of Tees Valley and Durham for granted.

I will work with anyone, including the Mayor, to secure the future of Durham Tees Valley airport, but the idea of public ownership is fanciful and I think that the Mayor knows it. He should work with me to help the airport succeed, because I believe that Durham Tees Valley is “flying for the future” and I want the people of Durham and Tees Valley to be a part of that.

--- Later in debate ---

[Mr Hayes]

Yes, I know; that was not lost on me. As I said, my own interest in Tees Valley began when I was in an earlier ministerial role and met some of the employers that the hon. Gentleman speaks about, in order to discuss their needs; I think I was the Minister responsible for skills at the time. I am well aware of the contribution that that part of our country makes to the economy as a whole, as well as to the locality. I understand the dynamism present there and the connections to other places and other countries—the international aspect that he reprised in his speech. Of course, central to all that are good communications and good infrastructure, the ability of both people and goods to travel to and from that place.

The hon. Gentleman is right to say that in that context the decline in services at Durham Tees Valley airport in recent years is a matter of regret. There is no doubt about that, as he said. I have the opportunity, therefore, to respond on the Government’s behalf to the wider points that the hon. Gentleman made about regional airports, because he mentioned that the issue is not wholly about Durham Tees Valley airport but about regional airports and their relationship to our aviation strategy. I want to say a few words about that at the outset and come back to the specifics that he mentioned.

[Alex Cunningham]

Will the Minister give way?

[Mr Hayes]

I will; I am about to begin my exciting account of our views on regional airports, but perhaps the hon. Gentleman will contribute to that.

[Alex Cunningham]

I am most certainly looking forward to that. Does the Minister agree that Heathrow, with all its ambitions for the third runway, could actually help regional airports, particularly Durham Tees Valley, by saying now that it will ensure that we have slots from Durham Tees Valley into Heathrow?

[Mr Hayes]

Yes; connectivity matters and I will speak about that in a moment. The hon. Gentleman made his point forcefully and put it on the record, which I am sure he wanted to do.

My view is clear: airports across the UK, including those in north-east England, make a vital contribution to the growth of regional local economies, as well as providing convenient means by which passengers can travel to other locations in the United Kingdom and other airports, as the hon. Gentleman suggests. They encourage investment, potential for trade and, as he and others have said, valuable local jobs, a base for the development of skills—many skills related to aviation are provided in those local airports—and they provide a means by which we can balance our economy. They can allow the growth of localities that are distant from south-east England but are none the less vital to our economic wellbeing, so they play many roles.

We have 40 commercial airports across the country, which ensure that 80% of the UK’s population are within 90 minutes of at least two airports. The UK has direct flights to over 370 destinations in more than 100 countries across the world. Those connections—this is the point that the hon. Gentleman made emphatically—provide huge benefits for the cities and regions of the airports that they serve. The hon. Gentleman will know, because he is interested in the subject, that the Government continue to recognise that importance. A priority for the aviation strategy that we are developing will be to ensure that the aviation sector continues to provide and improve connectivity across the regions and nations of the UK.

The hon. Gentleman will also know that this summer we published a call for evidence on the development of that strategy. We sought views on those very issues and we want to develop a strategy that takes full account of the role of airports across the country. Of course, it is true that there are major international airports in our kingdom, but they are not all that matters. The other airports matter, too—for all the reasons that the hon. Member for Sedgefield gave, and that I have amplified. We received a large number of responses to the call for evidence, which we are currently analysing, and we will consult further on the issues raised—including how to encourage connectivity—for exactly the reasons that have been argued. It is very important that an aviation strategy thinks strategically about the effect of connectivity not only to local economies but to our economy more broadly.

In those terms, I welcome this debate as a further contribution to that consideration. I invite hon. Members in Westminster Hall and others, more widely across the House, to contribute to that consultative process. It is really important that we base what we do on the understanding by different Members across the House of the effect of connectivity—particularly access to airports—in their localities and their regions. I recognise and value that.

Tees Valley airport, as the hon. Gentleman said, has enjoyed a level of investment, notwithstanding the challenges that it faces. Only this month, as he knows, a £250,000 terminal improvement programme was completed. That followed the announcement of the new services by Loganair, which will run weekly flights between Durham Tees Valley and Aberdeen, as well as non-stop flights six days a week linking Durham Tees Valley with Norwich. I am pleased to note that the airport’s public initiative, flying for the future, which highlights the airport’s key role in the Tees Valley area, shares some of the ambitions that the hon. Gentleman set out.

There is an interesting history of the particularity of the arrangements prevailing in respect of the governance of Tees Valley airport—Durham Tees Valley airport: I do not want to undersell Durham, as Durham is etched on my heart, as the hon. Gentleman probably knows. The airport was sold by the local authorities, for £500,000 I think, back in 2003 if my memory serves me right. The five local authorities concerned are still represented on the board, are they not? I suppose that they must be as distressed by the loss being made annually as anyone else, given that they are board members and share some responsibility for the airport’s governance—although they are minority shareholders, in the way that he described.

At the end of the day, what is currently happening at Durham Tees Valley airport clearly is not working. The airport is making a loss and it is not fulfilling some of the potential that the hon. Gentleman wishes for it—as does the whole Chamber, I guess. The Mayor has been in discussions with the current owners, Peel Airports. In the end, it is a commercial matter. Being mindful of the debate, I took the trouble to ring the Mayor yesterday to take his view on the issue and to ask what he felt was the Government’s role in it. He made it very clear, as I anticipated that he might, that it is not a matter for the Government, but very much a local matter, and it has to be settled locally. The Government have no competence in it. Of course, it is right to assume that they take an active interest in it, because it relates to the development of the strategy that I have described. As we care about regional airports, we would be bound to have an interest in it, but it is not for us to give power to local people to make decisions and then for me to impose what I think on local people. That would be quite wrong and no one in Westminster Hall today would want me to do that.

[Alex Cunningham]

Perhaps the Minister has answered my question before I have posed it. The local authority owns about 12% of the airport, but in the Minister’s discussions with the Mayor, did he offer the Mayor any advice on his grand plan to buy the airport, at the cost of tens of millions of pounds? Assuming—judging by his speech a few seconds ago—that the Minister did not offer him advice, what advice would he offer him now?

[Mr Hayes]

I am not sure that it would be appropriate for me to advise the Mayor on a local commercial matter. He did not seek my advice and I think that it would have been impertinent of me to offer it. I recognise that the Mayor has already made an outstanding contribution to the life, health and wellbeing of local people in Tees Valley, and I have every confidence that he will continue to do so. Indeed, we have already said that the airport matters—that is the essence of this debate. It is great that both local Members of Parliament, regardless of political party, and the Mayor are united, not only in their determination to do right by local people, but in their clear view that the airport is critical to local wellbeing.

Oral Answers to Questions

Alex Cunningham Excerpts

Thursday 19th October 2017 Commons Chamber

[Julia Lopez (Hornchurch and Upminster) (Con)]

1. What plans his Department has to update legislation on the taxi and private hire vehicle industries.

[Alex Cunningham (Stockton North) (Lab)]

12. What assessment he has made of the effectiveness of legislation on the taxi and private hire vehicle industries.

[The Minister for Transport Legislation and Maritime (Mr John Hayes)]

Another opportunity to inform, another chance to perform—what is better than that, Mr Speaker? As my hon. Friend the Member for Hornchurch and Upminster (Julia Lopez) may know, the Law Commission provided a report on reforming taxi and private hire vehicle legislation, since which the sector has undergone profound and rapid change. With characteristic assiduity and determination, I will lead the response to such change, so protecting passenger wellbeing.

[Mr Hayes]

As I glanced at the Order Paper, as you must also have done, Mr Speaker, I noticed my hon. Friend’s change of name due to the happy event of her marriage, on which the whole House will want to congratulate her. [Hon. Members: “Hear, hear.”] She has become our own J.Lo.

My discussions with the Mayor are regular. The Government are determined to find a way forward on taxi regulation. This is not just about the capital; we need to consider the whole issue of taxi licensing. As I have said, our absolute determination is for public safety and wellbeing, but we have to balance that with consumer choice.

[Alex Cunningham]

Sex offenders and others banned from driving taxis by local authorities are providing the same service simply by applying for a licence to drive a minibus. Will the Minister continue the work done by me and his predecessor on closing that loophole?

[Mr Hayes]

I met Leeds City Council just yesterday to discuss such issues. Licensing poses real challenges, which is why I set up a working party to consider the whole matter following a Westminster Hall debate on this subject. That working party will consider the very issues that the hon. Gentleman and many others have raised and then report back to me, and it would be reasonable for us to publish its findings early in the new year.

Oral Answers to Questions

Alex Cunningham Excerpts

Thursday 23rd February 2017 Commons Chamber

[Chris Grayling]

I have both visited my hon. Friend and holidayed in his constituency, so I know that it is indeed a lovely area and we encourage people from around United Kingdom to visit it on a regular basis. He will be aware of how important we regard the transport links to such areas. On the English side of the border, we will always seek to ensure the right connectivity is in place to support tourism. It is simply a shame that the Welsh Labour Government have proved so ineffective in such a wide variety of ways of working.

[Alex Cunningham (Stockton North) (Lab)]

16. What assessment he has made of the adequacy of taxi and private hire vehicle regulation.

[The Parliamentary Under-Secretary of State for Transport (Andrew Jones)]

At the request of the Department for Transport, the Law Commission conducted a comprehensive review of taxi and private hire regulation in England and Wales. The Government are currently considering all the recommendations in the report, against the background of a rapidly changing industry. We will formally respond to the Law Commission and announce our intentions once that scrutiny is completed.

[Alex Cunningham]

That is useful. However, I share Stockton Borough Council’s concern at the fact that a taxi driver whose licence had been revoked following inappropriate conduct with young female passengers was able to go on working for the same company, driving a minibus. There are countless other examples, including examples of sex offenders doing likewise with public service vehicle licences. When will the Government actually do something, and change the law to close this loophole?

[Andrew Jones]

Loopholes are, of course being closed, and we are working with the Home Office on the issue, but it is critically important and has, I think, united the House before. We can have a further conversation about it outside the Chamber.

Transport (Tees Valley)

Alex Cunningham Excerpts

Tuesday 10th February 2015 Commons Chamber

[Alex Cunningham (Stockton North) (Lab)]

I congratulate my hon. Friend on securing the debate, which is crucial to Teesside and the wider Tees area. I appreciate that he is concentrating on rail, but the Tees Valley local enterprise partnership reminded us today that we have no major road network and are forced to rely on secondary roads such as the A19 and the A66, which impacts on our ability to attract jobs. Does he agree that, as well as direct rail routes to London with electrification on the lines, we need 21st-century roads, including another Tees crossing, if we are to serve Teesside properly?

[Andy McDonald]

I wholeheartedly agree with my hon. Friend, who is absolutely right. One glance at a road atlas will show the complete absence of blue roads—motorways. We need one or two of them in our region.

The industrial might of the Tees Valley is a key component of the north-east of England’s manufacturing prowess. London apart, our region is the only one in the UK that consistently makes a positive contribution to our balance of payments. We lead the way in advanced manufacturing and export-led growth.

Tees Valley’s integrated chemical complex at Wilton, Billingham and Seal Sands is the biggest in the UK and second-largest in Europe. It sits alongside the steel industry—two vital foundation industries side by side. The Tees Valley economy contributes significantly to the north. It contributes some £11.5 billion of gross value added to the national economy every year. We have a thriving digital and creative industries cluster, which grew faster than that in any other LEP area in 2014. We have a 280,000-strong highly skilled work force, and a small businesses base of more than 14,500 firms.

We also have the UK’s third largest port, Teesport, which provides an international gateway, distributing products across the country and abroad. As a contemporary sign of its vitality and importance, PD Ports has just signed a seven-year contract with Sahaviriya Steel Industries for the continued shipping of its steel products.

Our leading colleges, our universities and national knowledge centres are at the forefront of skills development and innovation. Tees Valley also has an international airport, albeit one that is crying out for investment and redevelopment—we look to Peel airports to better develop the airport services—and we have direct road and rail routes to key locations across the north.

There is a consensus on the importance of reducing the UK’s trade deficit and rebalancing the economy. If that is to be achieved, it is important that Tees Valley and its mighty industries play their full role. Exciting developments in the energy-intensive industries hold great potential for our region and our country. Strictly subject to the science being right and there being verifiable safeguards, hydraulic fracturing and coal gasification have enormous potential for our future energy and industrial requirements. There is not time this evening to go into the detail, but subject to those safeguards, the future could be truly exciting. The major beneficiaries from the syngas so derived are the energy-intensive industries, and none more so than those on Teesside.

I must mention the Teesside Collective, a pioneering infrastructure project comprised of a cluster of leading industrial players—BOC, Lotte Chemical UK, SSI and GrowHow—which offers a compelling opportunity for the UK to progress its industrial and environmental interests at the same time. Work is already under way for the development of a business case for deploying industrial carbon capture and storage in the Teesside cluster. It will be completed later this year. Tees Valley is in the right place at the right time to become the industrial carbon capture storage leader in Europe. It is therefore essential that the Government provide the necessary support that such key foundation industries need, which in turn will allow our manufacturing industries to compete on a global stage. Good rail and road infrastructure for freight and passengers is essential to all of that.

On 17 January, the Secretary of State for Transport attended the launch in Leeds of Transport in the North, a body of regional leaders tasked with drawing up and delivering a comprehensive programme of strategic investment to transform the north’s infrastructure, and helping to maximise growth. I argue that, if that particular body is to properly speak on the transport needs of the north, it is wholly inappropriate if Tees Valley does not sit alongside the five cities on the board.

--- Later in debate ---

[The Minister of State, Department for Transport (Mr John Hayes)]

I congratulate the hon. Member for Middlesbrough (Andy McDonald) on introducing this debate. He reminded me, as I am sure he will have reminded you, Madam Deputy Speaker, of Hegel. It was Hegel who said:

“Nothing great in the world has ever been accomplished without passion.”

The hon. Gentleman’s passionate advocacy of the interests of his constituents and indeed of Teesside more generally certainly made an impression on me—and, I am sure, on other Members.

I do not disregard the significance of Teesside. I could hardly do so, given that when I was a Minister at the Department for Business, Innovation and Skills, the hon. Member for Hartlepool (Mr Wright), who has contributed to this debate, brought a group of business men from Tees Valley, who themselves illustrated, indeed personified, the very range of innovative industries that the hon. Member for Middlesbrough has described tonight. I am well aware of the character of the innovation taking place there and of the need to provide the right kind of transport infrastructure to support it.

I have a very long and impressive speech, but I shall not have time to deliver it. I know that that is a disappointment to you, Madam Deputy Speaker, and to the whole House. I shall, however, make a commitment to include anything I cannot cover in a letter that I will send to the hon. Members who have contributed to this evening’s proceedings. However, I would like to deal now with some of the specific points that the hon. Gentleman raised.

As I say, we recognise that effective transport plays a key role in stimulating growth across the country, creating a more balanced economy, connecting communities and enabling people to access jobs, services and leisure in the way described in the contributions we have heard. That is why we have determined to reverse the effect of some of the neglect in respect of infrastructural development that has characterised previous regimes. Members will be pleased to know that I am not going to be more partisan than that, but I wanted to make that point at the outset.

I know that the hon. Member for Middlesbrough will recognise and, I hope, acknowledge the importance of the road investment strategy that we have put in place. This is a long-term funded commitment, looking at the national road network in an innovative way, based on empirical analysis of the benefits we get from the money we spend. It secures both plans and money through to 2021. It is a £15 billion investment—probably the biggest road investment programme since the 1970s—and the north, including the north-east, will benefit from it, as the hon. Gentleman will know.

The hon. Gentleman mentioned Tees Valley in connection with logistics, environment interests, the creative industries and so forth, and I am aware that the connectivity he described is vital. A major new scheme will be taken forward on the A19. My hon. Friend the Member for Stockton South (James Wharton) has campaigned on this for some time, and I was pleased to see his parliamentary neighbour, the hon. Member for Stockton North (Alex Cunningham), joining his campaign to make those improvements.

Major new schemes, the Norton to Wynyard schemes, will be implemented on the A19. Along with two previously announced schemes on Tyneside—the A19 coast road and A19 Testos schemes—they will raise the A19 to expressway standard from Yorkshire to north of Newcastle. The widening of the A19 Billingham bypass in Teesside to three lanes between the A139 and the A689 will also include replacement of the concrete surface with low-noise surfacing. These investments will complement the Highways Agency’s pinch point schemes, which are already under way at two key junctions on the A19, and will smooth the way along the entire route, delivering more reliable journey times and reducing congestion and pollution.

[Alex Cunningham]

Will the Minister give way?

[Mr Hayes]

I will happily give way.

[Alex Cunningham]

Those who travel from the junction at Norton, where I live, on the A19 at 8.30 in the morning just join a queue for the next half hour. The real question is this: can we look forward to another crossing over the River Tees in the next programme that the Government plan?

[Mr Hayes]

I suggest that the hon. Gentleman apply for an Adjournment debate on just that issue, so that we can explore it in the depth that it deserves. As the Minister responsible, I should be delighted to respond to such a debate.

The roads investment plan also reflects the conclusions of the six feasibility studies announced in June 2013, which examined the case for improvements on the A1 and in other key national corridors.

In the time available to me, I shall depart from my script in order to deal specifically with some of the points made by the hon. Member for Middlesbrough, and, hopefully, give him good news. I share his view of the work that is being done on the Victorian cloisters at Middlesbrough station, and I will ensure that we pursue Network Rail so that the matter is dealt with speedily. Indeed, I will go further than that. The hon. Gentleman spoke about the roof which was destroyed in 1942. I wonder if we might consider the feasibility of doing something about that too, in the longer term.

I agree with the hon. Gentleman that a seat at the “Transport for the North” table for his area would be appropriate. He makes a persuasive case. I shall need to take it up with the Secretary of State, but I know that he is sympathetic to it, and I think that we should go ahead with it speedily. I also think that the hon. Gentleman is right about direct services to Middlesbrough, and I do not see why we should not consider the further improvements that he suggests as soon as the Government’s improvements to the east coast main line—on which I enjoy the privilege of travelling very frequently—have been completed.

East Coast Main Line

Alex Cunningham Excerpts

Wednesday 5th June 2013 Westminster Hall

[Andy McDonald]

If I can make some progress, I will come back to the hon. and learned Gentleman.

I have laid out reforms that it might be thought would cause disruption. In oral evidence to members of the Transport Committee on 24 April this year, the Minister made the following comment about punctuality on the east coast main line:

“If you look at the latest monthly figures for reliability and punctuality, it is the worst of the 19 franchises.”

Were that the whole story, it would be extremely concerning, but East Coast during the latter half of 2012 achieved the best train punctuality on the east coast franchise since records began in 1999. In recent months, some challenging external circumstances, such as the weather and overhead wire problems on the southern part of the route, affected performance, and East Coast is implementing a joint action plan with Network Rail to ensure that operational performance on the line returns to the record levels achieved in the autumn. The results the Minister cited are completely atypical. One has only to look at Network Rail’s moving annual average for punctuality, which puts the east coast main line in the top three of the seven long-distance franchises, to see that. The encouraging performance improvements in period 1 and to date in period 2 of this year are an early reflection of that collaboration with Network Rail. The latest available figures show that nine out of every 10 East Coast trains were on time, according to the industry’s public performance measure—up considerably on the previous quarter and up year on year.

[Alex Cunningham (Stockton North) (Lab)]

I am grateful to my hon. Friend and near neighbour on Teesside for giving way and I congratulate him on securing the debate. Does he have any idea why the new managers who were put in by the state to run the east coast main line have done so well? They are using the same people, the same equipment and the same everything else as the private company, National Express, which failed miserably, reneged on its contract and walked away.

[Andy McDonald]

I wish I could put my finger on it. My hon. Friend highlights a key issue, but it is useful to note that the way East Coast operates is a good comparator for the other services operating in this country.

The improvements are reflected in two key metrics. First, under public ownership East Coast achieved a record-breaking 92% overall customer satisfaction rating in the autumn 2012 national passenger survey conducted by the independent transport watchdog, Passenger Focus. That is the highest score on the franchise since the survey was launched in autumn 1999. It is 5% ahead of the score achieved in 2011 and three percentage points higher than the 89% average for all long-distance train operators. Indeed, in 2012, East Coast received the highest customer satisfaction score of any long-distance franchise operator.

Secondly, complaints stand at a rate of 150 per 100,000 journeys according to the Office of Rail Regulation’s latest available figures—down considerably on the previous quarter and back to the level prior to the disruption from the end of last year. Although that figure is relatively high compared with those of other train operating companies, it is just one third of where it stood when the east coast main line was in private ownership in 2007-08. A higher-than-average complainant rate might be due, in part, to the nature of the line regardless of its ownership, but since it is the publicly owned and publicly operated London Overground that has the lowest rate, at just two complaints per 100,000 journeys, it is difficult to claim a direct relationship between public ownership and complaints.

In addition, perhaps because of the unprecedented investment in staff that I have mentioned, there has been a 78% reduction in threats to staff in the past year. The apparent contradiction between a rise in customer satisfaction and a relatively high complaint rate dissolves entirely when we look at the Office of Rail Regulation’s breakdown of the reasons behind the grievances. Complaints about train service performance are down, year on year, from 38% to 29%, but what are on the increase and make up more than a fifth of all complaints are criticisms of the quality of the trains themselves. That comes directly from the fact that the rolling stock, which East Coast inherited from National Express, is eight years older than the industry average, at 27 years as opposed to 19.

That East Coast has achieved better customer satisfaction than any of its long-distance rivals, while running the oldest rolling stock of any franchise bar Merseyrail Electrics, is a testament to the workers and the management, and that the trains are still running at all after 30 years or more of continuous use is a testament to the brilliance of the engineers of British Rail Engineering Ltd who designed them and the factory workers of the north of England who built them.

Some elements of on-train comfort have also seen a marked increase. Of particular interest to certain hon. Members will be the new first-class complimentary at-seat food and drinks service, which has reversed historical losses of £20 million per annum and which contributed to a 21% rise in the number of first-class journeys in 2011-12, compared with the preceding 12 months. East Coast now serves a million meals per annum, which is a tenfold increase on the previous service, and its first class has certainly looked very nice on the occasions when I have walked through it.

Oral Answers to Questions

Alex Cunningham Excerpts

Thursday 19th April 2012 Commons Chamber

[Stephen Timms (East Ham) (Lab)]

4. What assessment she has made of the effect on women's employment of providing support for child care.

[Alex Cunningham (Stockton North) (Lab)]

6. What recent discussions she has had with ministerial colleagues on the role of child care for working mothers.

[The Parliamentary Under-Secretary of State for Work and Pensions (Maria Miller)]

The Government fully recognise the importance of child care in helping parents—not just mothers—to move into or stay in work. Under universal credit, we will for the first time extend help with child care costs to those working under 16 hours, benefiting some 80,000 families who previously had no such support.

[Maria Miller]

We have announced that under universal credit we will support an extra 80,000 families with child care, and that we are doubling the number of two-year-olds getting free nursery care. If the right hon. Gentleman is asking us to reconsider his Government’s policy of increasing support for child care to some 80%, perhaps he will explain where he will find the £600 million that the Daycare Trust feels it would cost to implement the policy.

[Alex Cunningham]

This month, 212,000 couples face losing their working tax credit if they cannot find more working hours. Many parents will be forced to give up work, and they may be forced to give up their child care places as a result. What will the Government do to monitor the impact of the changes to family support on the child care market, to ensure that when women can return to work they will not be left struggling to find a child care place?

[Maria Miller]

The hon. Gentleman is absolutely right that it is important that there is a supply of child care places. I am sure he knows that there is a duty on local authorities to ensure sufficiency of supply, and I remind him that with the new local authority early intervention grant, there is money to ensure the necessary supply for just the families he is talking about.

Civil Aviation Bill

Alex Cunningham Excerpts

Monday 30th January 2012 Commons Chamber

[Phil Wilson (Sedgefield) (Lab)]

Aviation makes a major contribution to the UK economy: the industry makes up £19 billion to £20 billion a year of our gross domestic product and employs 600,000 to 700,000 people. My concern tonight, in the context of this Bill, is the future of regional airports and the connectivity they offer between the regions they serve and the rest of the world.

In 1995, Heathrow served 21 domestic destinations and today it serves only six, only two of which are in England. Durham Tees Valley airport in County Durham, which is in my constituency and has part of its runway in the Stockton North and Stockton South constituencies, was once connected to Heathrow, but in February 2009 British Midland International—bmi—withdrew its service. Durham Tees Valley still has a twice daily flight to Schiphol airport in Amsterdam, and Schiphol and Charles de Gaulle airport in Paris now serve more regional airports in the UK than does Heathrow. I understand that bmi withdrew its slots from Durham Tees Valley to Heathrow as it wanted to use them for more lucrative long-haul flights into the capital, but those slots have yet to be filled. Although it might make sense to have the long-haul flights, there is a problem for connectivity between the regions, economic development and the global economy.

BAA bills Heathrow as our global gateway, but that cannot be true if only two regional airports in England have access to the international links through that airport to the rest of the world. The route to Schiphol from Durham Tees Valley is excellent and serves the Tees valley well.

Let me tell hon. Members something about the Tees valley and why it is so important that we maintain the connectivity between the airport and the rest of the world. It has to do with the size of the industry in the area. The economy of the Tees valley is based on the largest integrated process industrial complex in the UK. It contains industries specialising in petrochemicals, energy, renewable energy, biofuel and steel making. It has the third largest port in the UK and there is also a world-class advanced engineering industry based on the design, construction and maintenance of petrochemical plants, power stations and major infrastructure such as bridges. In addition, the region has the Wilton centre, which is Europe’s largest non-military private sector research centre. The petrochemical industry alone contributes £3.5 billion to the UK economy and 70,000 UK jobs depend on it. On top of that, Hitachi Rail Europe is coming to Newton Aycliffe, which is in my constituency and about 12 miles to the west of the airport. Again, a worldwide industry has been attracted to the region.

Although we have the link to Schiphol, I understand that it does not provide a connection with Australia and that the number of flights that connect to the middle east and north America have reduced in recent years. That is why the routes into Heathrow are so important. As the bmi slots into Heathrow have yet to be filled, I want the Government to consider some kind of public service obligation so that the slots remain reserved for flights from Durham Tees Valley into Heathrow. I have been pressing for that for several years, even before 2010, when Labour was in power. I would like to have the opportunity to discuss the matter with the Minister, in a meeting if possible, to see whether we can make progress. At the moment, there are about three PSOs in the UK: two in Scotland and one in Wales. In Europe, however, there are about 250, and they keep regional airports connected to international hubs.

That proposal is important for Durham Tees Valley airport, especially today. As we know in the north-east, the airport is being put up for sale by Vancouver Airport Services and Peel Airports Ltd.

[Alex Cunningham (Stockton North) (Lab)]

My hon. Friend and neighbour has proved to be a great champion for our local airport, which, as he said, is up for sale. Does he agree that when considering the future of Durham Tees Valley airport, as well as taking into account all the points he has made, the directors must seriously consider all offers to secure an expert company that is interested in providing the widest range of services at the airport rather than potential owners who are simply interested in serving the interests of shareholders and are not committed to a long-term viable future for the airport?

[Phil Wilson]

My hon. Friend makes a very important point. Transparency is very important when it comes to the sale and I know that the board is meeting every week at the moment to ensure that everything is out in the open. It is vital that whoever takes over the airport ensures it is there for the benefit of all the region, not just the shareholders.

Five or six years ago, approximately 900,000 passengers a year used the airport, but that figure is now down to 180,000 or 190,000. The largest part of those passenger numbers comes from the KLM flights between Durham Tees Valley and Schiphol. It is important that in the sale of the airport we ensure we get someone who will invest in the facility.

The airport has a proud history. It was originally known as Goosepool airport and then as RAF Middleton St George, and it was an RAF Bomber Command station during world war two. The airfield began its life as Royal Air Force Station Goosepool and in 1941 became RAF Middleton St George. The aerodrome opened as a Bomber Command station in that same year and, after the war, it served various squadrons. In 1964 it was sold and became Teesside International airport and, in 2004, it became Durham Tees Valley airport.

I understand that there are several prospective buyers for the facility at Durham Tees Valley, and I want to make sure that, whatever happens, it remains a commercial airport. If that is not to be the case, I want to make sure that it still has an aviation purpose for the north-east, whether as a general aviation facility, a cargo facility or a commercial operation. It is vital that there is a future for some kind of aviation in the Tees valley in whatever guise, because the business is needed—as I have said, it is a massive industrial complex—the tourism is needed, and investment in the facility by whoever buys it is needed.

I want to see an aviation future for Durham Tees Valley because connectivity is very important to an area with such a huge and internationally important industrial base. It is important to keep a commercial airport, but there is also a great need for the wider aviation facility. There has been criticism of the airport in the local press, but now is not the time for criticising Durham Tees Valley—we should be supporting its sale. I want the airport to have a viable aviation future that will benefit the whole region, as it is an important economic asset. The time for criticism, celebration or both is after the sale period, which I understand will be in the next week or so. In the spirit of the cross-party consensus this Bill has secured, I hope that the cross-party consensus among Tees valley MPs will also continue.

Finally, I should like to ask a question about the Bill. I understand that some of the inspections that the CAA currently undertakes will continue but that their cost will be transferred to regional airports and ultimately, I should think, to the customer. To avoid placing unnecessary burdens on regional airports and customers, will the Minister look at this issue again and let us know in today’s debate whether that is case? In an age in which greater connectivity and globalisation are bringing the world closer together, regional airports and the regions they serve deserve to be part of that economic growth, connectivity and globalisation and the economic wealth they can bring.

Oral Answers to Questions

Alex Cunningham Excerpts

Thursday 28th October 2010 Commons Chamber

[Mr Stephen Hepburn (Jarrow) (Lab)]

4. What his policy is on the future of the bus service operators grant; and if he will make a statement.

[Alex Cunningham (Stockton North) (Lab)]

13. What assessment he has made of the likely effects on socially excluded groups of the proposed reduction in bus service operators grant.

[The Parliamentary Under-Secretary of State for Transport (Norman Baker)]

From 2012-13, the rate at which bus service operators grant is paid will be reduced by 20%. Our assessment is that this level of reduction will, overall, have a low impact on socially excluded groups. I spoke to the Confederation of Passenger Transport UK, which represents the bus industry, following the Chancellor’s announcement on 20 October. It was hopeful that, in general, this reduction could be absorbed without fares having to rise.

[Norman Baker]

With respect to the hon. Gentleman, I do not think that he heard the answer I gave, which was that I have spoken to the Confederation of Passenger Transport UK, which represents the bus industry, and it was hopeful that the reduction in the bus service operators grant was marginal and could be absorbed without fares having to rise. I also draw to his attention the fact that the Government have protected the concessionary fares arrangements.

[Alex Cunningham]

My constituent, David Gordon, has told me that he values his bus service, which has improved considerably in recent years, very highly, but he is worried about its future. Many others depend on the buses to get to work or to search for work across Teesside and beyond. Can the Minister reassure Mr Gordon that bus services really will be protected and that those seeking work and other excluded groups will be able to follow the advice of the Secretary of State for Work and Pensions and get on a bus in their area to look for work?

[Norman Baker]

The hon. Gentleman will know that the Tees Valley bus network’s improvement scheme is going ahead. The Government have confirmed that only recently, so I hope he will welcome that particular suggestion. It is our intention to get more people on to buses, and we are working with local authorities and the bus industry to achieve that—for example, by the roll-out of smart ticketing. So, yes, his constituents will be able to get on a bus; in fact, there will be even more buses than previously.

Transport (Investment)

Alex Cunningham Excerpts

Tuesday 26th October 2010 Commons Chamber

[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?