West Coast Main Line

Derek Twigg Excerpts
Monday 15th October 2012

(11 years, 7 months ago)

Commons Chamber
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Derek Twigg Portrait Derek Twigg (Halton) (Lab)
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I would like to quote what the Under-Secretary of State for Transport, the hon. Member for Wimbledon (Stephen Hammond) said on behalf of the Government in a debate on 17 September, just a few weeks ago. He said:

“The Department is confident that we have taken the right decision in the interests of taxpayers and passengers. We expect to sign the contract soon, but we intend to defend the judicial process robustly.”—[Official Report, 17 September 2012; Vol. 550, c. 236WH.]

Given that the Secretary of State has been in the job for only a few weeks, is he confident that the financial information that he is getting throughout the Department for any major projects—including the Mersey gateway project—is robust and can stand up to scrutiny in the future?

West Coast Main Line

Derek Twigg Excerpts
Monday 17th September 2012

(11 years, 8 months ago)

Westminster Hall
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Derek Twigg Portrait Derek Twigg (Halton) (Lab)
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I congratulate my hon. Friend the Member for West Lancashire (Rosie Cooper) on securing this unique debate and for the interest that she has taken for many years in transport issues, rail and the west coast line.

I was a bit worried earlier when my hon. Friend the Member for St Helens North (Mr Watts) was criticising the Department for Transport for getting decisions wrong all the time. He mentioned rail. As a former rail Minister, I thought, “Does he mean me?” He has since popped over and said that he did not.

I was rail Minister for 18 months, and it was a fascinating period. We discussed franchising; I am certainly sceptical about it. I had to appear before the Transport Committee, then chaired by Gwyneth Dunwoody, the former Member for Crewe and Nantwich, a formidable individual who is, sadly, no longer with us. We always used to look forward to appearing before her in Committee to answer her questions. It was an experience. I remember asking the officials what franchising adds and what it brought to the party to improve things. I found it difficult to get an answer. The best that they could come up with was that it improves customer service, is more innovative and has brought improvements in service, but their answer was not overwhelming.

We had various problems with franchises. Southern was one that was sort of operated by the Department; now we have East Coast as well. There are alternatives to be considered. Franchising creates many problems, some of which we have heard outlined during this debate.

I welcome the Minister to his new job. I am sure that he will be helpful in answering our questions, and I am sure that he is finding out that the matter is not at all straightforward and has many difficulties and pressures.

I wanted to speak in this debate primarily because I believe that all politics is local. My constituents have contacted me asking me to put forward their views, both on behalf of passengers and because Runcorn station, one of the best-used stations on the west coast main line, is in my constituency, and numerous staff there are my constituents. I worry about their employment and their future. Surprisingly, a lot of people who have contacted me have said that they are disappointed that Virgin lost, because they think Virgin made a difference. Even one long-standing critic of Virgin has come to accept that in the circumstances of franchising Virgin has made a difference, but I will come to that shortly.

The hon. Member for Warrington South (David Mowat) has kept intervening to say that the risk to shareholders and taxpayers is crucial. That has not been made clear at all. Maybe the Minister will make it clear. It is a key issue, because the arrangements must be a good deal for both the fare payer and the taxpayer. We have no idea at the moment whether they are. I am sure that he will want to explore that.

The franchise decision was announced during the summer recess, denying Members of Parliament, many of whom have a close interest in the matter, recourse to questions to the Minister about the ramifications, the process and how the franchise award was arrived at. The decision to award the franchise to FirstGroup has created a lot of concern—I cannot recall a recent franchise award that has been so much criticised—so it is clear that this debate is important.

We are all well aware of the findings of the Transport Committee, chaired by my hon. Friend the Member for Liverpool, Riverside (Mrs Ellman), on previous franchise fiscal failures. To dwell on Virgin for a bit, I will not pretend that things have been trouble-free under Virgin—there were certainly a lot of difficulties in the early days—but it had and continues to have fantastic staff, whether at my station at Runcorn, which has won award after award for customer care and service, or on the trains. If I have any criticisms of Virgin, one is that it changed a good thing. Passengers travelling on a line got to know the train crews, and Virgin decided to change them and swap them around the country. A lot of people thought that that added to the drop in service. It was not popular, and it led to a drop in morale.

The prices that Virgin charges for walk-on fares are frankly scandalous; I think that we all know what sort of prices I am talking about. However, it had many innovative ideas about advanced ticketing. Gating along the line could have been done better, as has been discussed in relation to the franchise. Parking charges have been a problem. If I had not stepped in to confront Virgin about parking charges at Runcorn, they would be much higher than they are now, adding to the massive parking problems around the station faced by my constituents.

To return to the franchise, the Department for Transport still has questions to be answered regarding its failure on the relative bid risk assessment; FirstGroup’s bid posed a risk not properly mitigated through adequate risk insurance. My hon. Friend the Member for West Lancashire has asked many questions that are in the public domain, so I will not repeat them. The Minister has heard them, and I hope that he will answer them.

John Leech Portrait Mr Leech
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Does the hon. Gentleman agree that as part of that risk, FirstGroup should have to risk losing all its other franchises if it is unable to deliver this one?

Derek Twigg Portrait Derek Twigg
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We would have to explore the consequences to the rest of the rail users on the system, but it should certainly be explored.

I return to a key issue that several hon. Members have pointed out. A cloud of controversy has surrounded the back-loading of the premium payments to the Government in the final few years of the franchise, whereas Virgin pledged more cumulative premiums to the Government for the first nine years of the franchise. I know the west coast line well, not just from travelling it but from my experiences as the rail Minister, and there were major problems on the west coast line during the early 2000s, for various reasons. At one stage, it was almost in a state of collapse, and the train services provided were pretty awful. Income dropped massively during those early years, for obvious reasons: people were not using the service. Because of the problems, they were using alternative transport such as cars, planes and so on. Income jumped in 2004 or 2005, and the timetable came out and so on. As the Minister will be aware, in 2009, a new timetable was introduced with weekend running and faster trains, which I mentioned. Did the bid take account of, or did Ministers ask questions about, that unusual situation at the beginning at the 2000s and its impact on longer-term predictions of income?

I assume that High Speed 2 will have a major impact on Euston, unless the Minister can tell me something different. Has any care been taken about that and the possible impact on the west coast?

The other question for the Minister relates to the GDP forecast on which the bids were based. Will the Minister confirm whether the bidders went along with the Government’s forecasts—a major failing in recent years—or a lower forecast? That will have an important impact on the bids. Projections are guess work, but I am not sure—we have not seen all the details, because we keep being told that they are confidential—whether the details actually add up. There is no doubt that the line has the potential for a great amount of growth. A point was made earlier about capacity and future investment. I am slightly sceptical about High Speed 2, because it has the potential to have an impact on necessary investment in the west coast main line.

Lord Watts Portrait Mr Watts
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Does my hon. Friend agree that it seems that the First bid will deliver premium payments at the end of the contract, which will mean that the Government will have less money to invest in the west coast main line in the early years? Is there not an argument for doing the opposite, so that we can invest to deal with the congestion problems we will face while waiting for High Speed 2? Given the fact that no one knows whether HS2 will go ahead, is it not crucial to invest early rather than later?

Derek Twigg Portrait Derek Twigg
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As ever, my hon. Friend makes an important point. One key failure of the system—I hold my hands up as a former rail Minister—is in being unable to get investment into certain franchises to improve rolling stock, passenger experience, gating and so on. Some companies that have won franchises have decided not to invest, for various reasons that we do not have time to go into.

As I said, all politics is local. Runcorn, in my constituency, has benefited significantly from improvements put in place in the past 10 years or so. I am concerned that we will not build on those improvements and, because of problems with the franchise, take a step backwards. What has happened in recent years is remarkable. Virgin has achieved a good partnership with Halton borough council, which has been crucial in the reconstruction of Halton’s economy. The previous Government’s massive £8 billion investment in the west coast main line, after decades of underinvestment by other Governments, was crucial in achieving the improvements we now see, and Virgin became part of that achievement because it ran the franchise. We have seen massive improvements. From Runcorn, it now takes just under two hours to get to London, with the fastest train taking 1 hour 50 minutes.

Marcus Jones Portrait Mr Marcus Jones (Nuneaton) (Con)
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Some things that happened under the last Labour Government and during Virgin’s franchise were not actually that positive for people on the west coast main line. Through his Government’s actions, my constituents in Nuneaton were severely disadvantaged in 2008, when all their fast off-peak services were taken away, something that hopefully the new franchise will rectify.

Derek Twigg Portrait Derek Twigg
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I understand the hon. Gentleman making an important point about his constituency, but faster trains to London were part of the attractiveness of the changes that were made. Where most passengers got on was important in making those decisions, and I am sorry that that disappointed the hon. Gentleman. I was very pleased for my constituency. I have not seen the details of the new franchise, but I hope there will be no attempt by the winning bidder to reduce the number of trains that stop at Runcorn. Merseytravel has pushed strongly for trains to stop at Liverpool Parkway, but we do not want any reduction in the number of trains stopping at Runcorn because of the economic impact the excellent service has on my constituency.

There have been massive station improvements. Mick Noone, the transportation strategic director at Halton borough council, has said the line is

“extremely attractive and well used”.

He went on to say:

“The quality, frequency and reliability of the services have undoubtedly encouraged more people to use the train”.

After years of persistent lobbying by me and Halton borough council, we were able to secure investment for a £650,000 refurbishment programme in Runcorn station. Its tired old 1960s appearance has been upgraded with new cladding, improving the experience for passengers and for my constituents who work there and provide such brilliant service.

Mark Pawsey Portrait Mark Pawsey (Rugby) (Con)
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The hon. Gentleman’s experience as a former Minister is valuable, and on many occasions he has referred to the substantial public investment in the west coast main line. Is it not that investment itself that makes it important for the Government to go for the bid that gives the maximum return?

Derek Twigg Portrait Derek Twigg
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If the Government go for a bid that says it will give the maximum return but it does not stack up, that is a problem. I am glad that the hon. Gentleman made the point about the massive amount of public investment that took place under a Labour Government; it has made a massive improvement.

Daniel Kawczynski Portrait Daniel Kawczynski
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On borrowed money.

Derek Twigg Portrait Derek Twigg
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Most of the problems with the west coast main line were due to the lack of investment during the 18 years of the previous Conservative Government, so if the hon. Gentleman wants to get into a political argument I am happy to do so.

Ann McKechin Portrait Ann McKechin (Glasgow North) (Lab)
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My hon. Friend is making some excellent points. Does he agree that there are a lack of effective penalties in this contract? If the return to the taxpayer is back-loaded, there is no guarantee that the investment required on this vital line will take place in the way envisaged by the Government. I have to yet to hear where the effective penalties will apply.

--- Later in debate ---
Derek Twigg Portrait Derek Twigg
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My hon. Friend is absolutely right and we need to know. The Minister is probably getting the answer as we speak, which I hope he will be able to give us later.

I am concentrating on what this issue means to the passenger and the taxpayer. For the passengers in my constituency, the experience has been superb. We want it to continue and do not want it to be put at risk. From 2010-11, there was a total of 619,882 entries-exits at Runcorn station, up almost 16% on the previous year according to data from the Office of Rail Regulation—a significant improvement.

I have asked the Minister some specific questions that fold in nicely with those asked by my hon. Friend the Member for West Lancashire. I do not want to put the improvements that have benefited my constituents in the past 10 years or so, particularly in the past five years, at risk. We want to continue to see improvements. The west coast main line is vital to the economy of Merseyside, Cheshire and my constituency of Halton in particular. I hope the Minister will take into account the points raised when he makes the final decision, and that he answers them as openly and as transparently as possible.

--- Later in debate ---
Lord Hammond of Runnymede Portrait Mr Hammond
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The hon. Lady comments from a sedentary position. She is quite right; she did not suggest that, but a number of her colleagues did. It is not a new way of doing things, provided that as soon as Ministers return to the House, they make a written ministerial statement. Following the announcement on 15 August, on the first possible date thereafter—3 September—my right hon. Friend the Member for Chipping Barnet took the opportunity to make a written ministerial statement to the House.

After the announcement, the Department received a legal challenge to the procurement from Virgin Trains Ltd, which had bid unsuccessfully. I intend to try to answer as many questions as possible, but I do not need to be reminded—I am sure that hon. Members do not either—that in cases where there is a legal challenge, it is difficult to answer all the questions that may be asked. As I said earlier, if I appear reticent, it is not any wish not to be transparent, but simply that when matters are subject to the judicial process, it is impossible to make broader comment.

It is right and proper, and the Department believes so, that our choices regarding new franchises and value for money for the taxpayer are subject to scrutiny by Parliament. However, there is a right and proper time for that to take place.

Many hon. Members paid tributes, quite rightly, to Virgin Group. Sir Richard Branson and Virgin have made an undeniable and tremendous contribution to UK rail. Let me try to assure hon. Members that the winning bid offers significant benefits to passengers. First West Coast Ltd has contracted to introduce 11 new electric trains of six carriages from December 2016. That will mean an extra 12,000 seats a day for passengers. First has also committed to retaining and fully refurbishing the trains already in the fleet.

In the speech by the hon. Member for Halton, his colleague the hon. Member for St Helens North (Mr Watts), who is not currently in his place, made a point about the leasing of trains. The short answer to his question is that commitment to lease trains is in the franchise agreement. To remove any part of the train fleet, the Secretary of State’s consent is required. I hope that that clears up that issue.

Subject to the approval of the Office of Rail Regulation, First will take advantage of the increased flexibility in the contract to introduce a number of new services from London Euston to Blackpool, Bolton, Telford Central and Shrewsbury. It will also introduce ITSO-based smart ticketing, which will benefit users across the country, bringing the sort of freedom that we have already seen in London with the Oyster system. It will not have escaped the attention of hon. Members that in its bid, alongside that investment, First West Coast Ltd has committed to reduce standard anytime fares by on average about 15% over the first two years.

There have been a number of questions on staff and morale. I reassure hon. Members that, as with previous franchise transfers, existing employees, including drivers, guards and back-office staff assigned to the part of the organisation transferred to First West Coast Ltd, will be protected by TUPE regulations. FirstGroup has also given a commitment to continued investment in front-line staff.

I reassure the hon. Member for Ynys Môn that all bids were assessed independently for deliverability, and all bids were assessed as deliverable. The Department believes that the winning bid is deliverable, provides value for money for taxpayers and passengers, and capitalises on the £9 billion already invested in the west coast main line and the £18 billion the Government are continuing to invest.

None the less, as the hon. Member for Garston and Halewood said, the Government can learn lessons from the mistakes of previous Governments on handing back keys and the failure of certain people on the east coast main line to deliver. There have been several comments on the procurement process, and we are acutely aware that we need to ensure we learn lessons from past franchise failures. In designing the franchise, some of those comments and recommendations, particularly the Public Accounts Committee’s recommendations, following the failure of the east coast main line have been taken into account. We therefore required First West Coast Ltd to provide a third party-backed guarantee, the largest guarantee ever required.

We have also removed the cap and collar system that was in place for the east coast franchise and introduced a GDP support mechanism—a question was asked about that. Indeed, the mechanism supports the Government because there is protection whether GDP goes up or down. I will happily write to the hon. Member for Halton with the full details of that mechanism when I am able to do so.

Derek Twigg Portrait Derek Twigg
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I do not want to pursue the matter for too long, because time is short. If the Government’s projections for GDP, which the bids were based on, is low—the Minister has not said whether one bidder put in a lower projection, despite the Government’s figures—will the Government have to give money back to the successful bidder?

Stephen Hammond Portrait Stephen Hammond
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My understanding of the GDP process currently in place is that there would be either payments back to the Government or payments from the Government. I will write to the hon. Gentleman about that.

I make it clear that GDP was only one of the external factors; it was not the only external factor. To ensure that the Government are further protected, a profit share mechanism has also been introduced. The mechanism will enable the taxpayer to benefit from a share in any super profits that the franchise generates while continuing to provide an incentive for the franchisee to outperform.

The hon. Member for West Lancashire asked a number of questions about the Government’s preparations, should the franchise end without a new franchisee being in place. I make it clear that the existing contractor has a contractual obligation to support handover activities. On the 120 days to which she referred, a departmental mobilisation manual is being used by both parties in every franchise to ensure that a franchise handover process is in place, and the activities and time scales required to effect a transfer are set out. The Government are confident that the Department is putting in place the right contingencies in the time scale, should the process not be completed. We expect the legal issues to be resolved so that contingency plans will not be necessary.

Rail Investment

Derek Twigg Excerpts
Monday 16th July 2012

(11 years, 10 months ago)

Commons Chamber
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Justine Greening Portrait Justine Greening
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I absolutely think that. As someone who was born and bred in Yorkshire, I think that the sort of investment now going up to the north of our country is absolutely critical. There is so much talent up there; we just need to make sure we invest to unlock it.

Derek Twigg Portrait Derek Twigg (Halton) (Lab)
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The Secretary of State mentioned small interventions that make a big difference. Do her plans include any proposal to look at the Halton curve in Cheshire, which is an important project for both Cheshire and Merseyside, and if they do not will she go away and look at it again?

Justine Greening Portrait Justine Greening
- Hansard - - - Excerpts

That is more of a local scheme, but I will certainly undertake to look at it and see whether I can get back to the hon. Gentleman with some more details.

Oral Answers to Questions

Derek Twigg Excerpts
Thursday 28th June 2012

(11 years, 10 months ago)

Commons Chamber
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Justine Greening Portrait Justine Greening
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I agree that is important. Actually, the latest statistics published by the Department suggest that Surrey road conditions are slightly higher than average. Of the 117 local authorities where we allocate highway maintenance funding, Surrey falls into the top 15 and we are providing £61 million. In addition, my hon. Friend will know that we are focused on important schemes; we are providing £24 million towards the Walton bridge scheme that is now under construction. We are willing to put in that investment, and it will make a big difference on the ground.

Derek Twigg Portrait Derek Twigg (Halton) (Lab)
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Roads are a very important part of any sustainable transport structure. Unfortunately, the Secretary of State turned down Halton’s bid for a sustainable transport fund, and I am in correspondence with the Under-Secretary of State for Transport, the hon. Member for Lewes (Norman Baker), on the issue. Can the Secretary of State confirm whether any other area has been asked to rework and resubmit its bid? If so, can she tell me why it has, but not Halton?

Justine Greening Portrait Justine Greening
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We had a rigorous process for looking at all the bids; they were considered by a panel of experts that we appointed. Some of the bids were modified in the light of the reaction of the independent panel, and we took our investment decisions on that basis.

Oral Answers to Questions

Derek Twigg Excerpts
Thursday 19th April 2012

(12 years ago)

Commons Chamber
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Norman Baker Portrait Norman Baker
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I do agree. That is the sort of initiative that I am pleased to see some councils adopting, given the freedom that the Government are providing. Buses are a lifeline for people who do not have access to a car. I would be delighted to help my hon. Friend launch this scheme on 13 June.

Derek Twigg Portrait Derek Twigg (Halton) (Lab)
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One of the biggest problems with the bus cuts is their impact on young people. This week, I received an e-mail from a young constituent saying that back in 2010, his bus fare to school was £7.50, but it has now become, in his words, “a huge £12”. Cuts to local authorities and bus grants are having a disproportionate effect on young people, so what are the Government doing to help young people by ensuring that they have access to affordable transport?

Norman Baker Portrait Norman Baker
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I accept that there is an issue for young people, which is why I have taken steps to ensure that young people came along to talk to the operators and local authorities at the bus forum I hold on a six-monthly basis. It is also why I discussed the matter with the Confederation of Passenger Transport, which is now taking steps to try to get a better deal for young people. I have had discussions with the confederation about that very matter.

Transport and the Economy

Derek Twigg Excerpts
Tuesday 28th February 2012

(12 years, 2 months ago)

Commons Chamber
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Louise Ellman Portrait Mrs Louise Ellman (Liverpool, Riverside) (Lab/Co-op)
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I am pleased to have the opportunity to launch a debate on two reports from the Transport Committee about expenditure by the Department for Transport. The first, “Transport and the economy”, considered how spending on transport could boost economic growth, and was published last March. The second, “Counting the cost”, was published only last week. That report follows up important aspects of our earlier work and comments on changes to departmental expenditure plans, particularly the new transport projects announced by the Chancellor of the Exchequer in the autumn.

I should begin by putting the Department’s expenditure into context. In 2010-11 the Department’s budget was £12.8 billion, which was split between capital projects and ongoing resources spending. As a result of the spending review, that budget was due to decrease by 15% in real terms by 2015. Resource spending, covering items such as local authority grants and the bus service operators’ grant bus subsidy scheme, was cut by 21%.

Derek Twigg Portrait Derek Twigg (Halton) (Lab)
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I congratulate my hon. Friend. During the last two or three months, I have observed an increasing number of complaints from constituents whose bus services are being cut in Runcorn and Widnes. Has the Committee made any assessment of the wider impact on bus services throughout the country?

Louise Ellman Portrait Mrs Ellman
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The Committee investigated the impact of spending cuts on bus services, and found that cuts had been made in more than 70% of transport authorities. My hon. Friend may be interested to know that it is currently re-examining the issue.

The cut in the bus subsidy scheme was larger than the 11% cut in capital spending. The situation has changed a little following the autumn statement, with some extra money provided for capital projects

The fact that most of the Department’s budget is spent by external agencies, specifically Network Rail, Transport for London and local authorities, makes it more difficult for the Department to have detailed control over those areas. However, the Department was generally regarded as having emerged relatively well from the spending review, despite the significant cut in its budget. I welcome the Government’s statement that they believe that spending on transport infrastructure can help to boost the economy.

It is important to recognise that congestion on the road, rail and air networks remains a major constraint on connectivity and growth. There is clear evidence that relieving congestion by providing new capacity helps to increase productivity and promotes economic development. It is also important to note that congestion is not the only indication of the need for transport investment, particularly where regeneration is required and disparities are evident.

The last major Government study of the relationship between transport and economic growth was the Eddington report, commissioned by the previous Administration. It showed that transport is necessary for economic growth, but of itself is not sufficient. To be effective, transport and economic development must go hand in hand. Building transport links to Canary Wharf regenerated the area because that was linked with an economic strategy. It is not clear that the Government appreciate the significance of this point made strongly in our report.

Our report expressed concern that the abolition of regional structures may lead to the absence of economic development strategies required to maximise the potential of transport investment across local authority boundaries as well as making it more difficult to prioritise transport projects of wider significance. The Department has encouraged the local enterprise partnerships to fill that gap and it is now suggesting that transport funding could be devolved to groups of local authorities and LEPs. How will this work in practice, however? This new approach to regional planning might work well in some areas but could struggle to take off in others, and there will be parts of the country which lack a strong voice or which fall between two strong regional centres and are overlooked by both.

The Department did not identify the issues it is seeking to tackle through its spending on transport. For example, the Government state that they want to “rebalance the economy”. That can mean a number of different policies, perhaps including more private sector employment, reducing disparities between regions, or reducing reliance on the banking sector and encouraging manufacturing. How are the decisions on transport spending related to these objectives and what assessment takes place to identify which transport modes are most appropriate to deliver them? How is the balance of spending between road and rail determined? Has any assessment been made of the significance of the absence of an aviation policy on economic activity generated by international connectivity? The answers to those questions are not clear. That is because the Department does not have an explicit transport strategy and lacks a coherent framework for deciding which transport schemes to prioritise.

I must note, however, that some progress is being made. Rail and aviation policy papers are due very soon and the Committee is looking forward to scrutinising them. There has been an important review of the Highways Agency, a national policy statement regarding ports has been agreed, and a policy statement for national networks is awaited. Will the Minister assure us that we will soon see a Government strategy for transport? That is greatly needed and has been long awaited.

The Committee considered the appraisal that is undertaken of transport projects. There is sometimes too much focus on cost-benefit analysis: not all the costs and benefits of a project can be monetised. For example, the wider economic benefits of a project or its environmental impacts are often excluded. It is also often forgotten that the economic appraisal is just one aspect of a more complex appraisal process based on five areas, including strategic fit and project affordability. Unless an overall strategy is identified, it is not possible to assess the strategic fit of any individual investment. Greater transparency in decision making is important. No doubt we will debate High Speed 2 in more detail on another occasion, but it is notable that although a huge amount of material about the project has been published, no information about how it is to be financed has been made public.

In respect of smaller schemes, there is often very little published information about the strategic fit or how they are to be funded. The new projects announced in the autumn statement seem to have been funded on the basis that they were ready to proceed. It is unclear whether they are necessarily the investments that offer the best value for money or that will meet transport objectives. The Department contributes significantly to two cross-departmental funds—the regional growth fund and the growing places fund—but no information is available on where the Department’s financial contributions have been invested or to what effect.

Strategic fit should include consideration of how a scheme contributes to rebalancing the economy. The major investment that has taken place in transport infrastructure in London and the south-east is clearly necessary, but transport investment across the UK is required. Interestingly, £15 billion will be invested in Crossrail, about £5 billion of it directly from Government funds, and £5.5 billion will be invested in Thameslink, while a reappraisal is taking place on whether half a billion pounds should be invested in The Northern Way, improving rail services right across the north.

The new transport spending announced in the autumn statement is welcome, but the analysis of the regional breakdown published by the Institute for Public Policy Research North raises concerns. It found that 84% of planned new infrastructure spending would be in London and the south-east, compared with just 6% in northern England. That works out at an average spend per head of £2,731 in London compared with just £5 in the north-east. The Passenger Transport Executive Group has produced similar information showing that transport spending is more than twice as much per head in London and the south-east than it is in Yorkshire and Humberside, the west midlands and the north-east. That imbalance is a matter of concern.

Oral Answers to Questions

Derek Twigg Excerpts
Thursday 12th January 2012

(12 years, 4 months ago)

Commons Chamber
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Norman Baker Portrait The Parliamentary Under-Secretary of State for Transport (Norman Baker)
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I agree with that proposition. One of the problems is that the Victorian infrastructure, which is marvellous in many ways, was not built with the needs of present-day communities in mind. The full Access for All programme is continuing, and I think that it should be possible in most cases to improve access while respecting the integrity of such buildings.

Derek Twigg Portrait Derek Twigg (Halton) (Lab)
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T7. All parties support the proposed new Mersey Gateway crossing, but there is concern that local people will have to pay a toll to cross the bridges. I believe that they should continue to pay nothing. My big concern is that the deal that the Government have offered Halton borough council means that they will take 70% of any excess revenue from procurement savings and 85% of any excess toll revenue, which will leave the council little room for manoeuvre to discount local tolls. Will the Secretary of State please look at this again?

Justine Greening Portrait Justine Greening
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I think that the deal we struck with the hon. Gentleman’s local council is the right one, and one that it signed up to. It enables it to get on with the new crossing, which will provide welcome extra capacity for many people in the area.

Oral Answers to Questions

Derek Twigg Excerpts
Thursday 10th November 2011

(12 years, 6 months ago)

Commons Chamber
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Norman Baker Portrait Norman Baker
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I am happy to confirm that the Government are committed to doing what we can to help local authorities with road maintenance. We have a highways maintenance efficiency programme to identify best practice, which we are funding centrally. In addition, I am happy to say that in March we allocated an extra £4.1 million to Surrey county council to deal with its specific problems.

Derek Twigg Portrait Derek Twigg (Halton) (Lab)
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If we have severe frost and snow again this year, will the Government again make extra money available to local authorities to deal with the problems that that would cause on our roads in the coming six months or so?

Norman Baker Portrait Norman Baker
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We deal with circumstances as they arise, but we are putting in place measures to ensure that local authorities make the best use of the money that they have. Salt stocks are high, and as I mentioned a moment ago we are investing in steps to ensure that the highways maintenance efficiency programme gets the best value for money from what local councils spend.

Oral Answers to Questions

Derek Twigg Excerpts
Thursday 5th May 2011

(13 years ago)

Commons Chamber
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Lord Hammond of Runnymede Portrait Mr Hammond
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As my hon. Friend will have anticipated, I specifically had passengers in Wiltshire in mind when we designed our franchising proposals. The key thing is to drive down the cost of our railways. We have to make them more efficient, and we have to close the productivity gap between them and competitive railways in Europe to relieve the pressure on both the taxpayer and the fare payer. The changed franchise specifications will give train operators incentives to drive down costs—something that, frankly, they have not been incentivised to do under the current system.

Derek Twigg Portrait Derek Twigg (Halton) (Lab)
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The Secretary of State made a point about less prescriptive service requirements, but will he give a guarantee that stations such as Runcorn mainline station and Widnes station in my constituency, which have seen a significant increase in passengers in the past five years, will not, as a result of his reform of franchising, have a reduction in the number of stopping trains?

Lord Hammond of Runnymede Portrait Mr Hammond
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I understand the hon. Gentleman’s point, and our intention is to maintain services while creating sufficient flexibility at the margin to allow franchisees to operate their businesses in a way that makes them more efficient. That is a complex balancing act. Nobody wants train services to be reduced as a consequence, but if we are absolutely prescriptive about the timetable, down to officials detailing the precise time of every train stop at every station, the scope for improving the efficiency of our railways will be severely limited. It is a balancing act, and we are determined to get it right.

Oral Answers to Questions

Derek Twigg Excerpts
Thursday 28th October 2010

(13 years, 6 months ago)

Commons Chamber
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Lord Hammond of Runnymede Portrait Mr Hammond
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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 Portrait Derek Twigg (Halton) (Lab)
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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?

Lord Hammond of Runnymede Portrait Mr Hammond
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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.