Spring Statement

Edward Leigh Excerpts

Tuesday 13th March 2018 Commons Chamber

[Mr Hammond]

First, the right hon. Gentleman knows, as I do, that our economy still faces uncertainty as we go through the negotiation process with the European Union. I am convinced, from every conversation I have had with business leaders and investors, that as we deliver greater clarity about our future relationship with the European Union over the coming months, we will see business investment and consumer confidence increasing. We beat the forecast in 2017. Let us beat it again in 2018. I do believe that economic growth matters. The shadow Chancellor says that it does not matter what the level of GDP is, but I do not agree—[Interruption.] Well, I will send him the quote if he cannot immediately recall what he said. I do believe that GDP matters, because it is what drives living standards. We are putting extra money into public services—£11 billion since I have been Chancellor. I agree that we have a major challenge in the housing market. We have put a significant amount of money—£44 billion—into dealing with the challenge over the rest of this Parliament, but there are significant non-financial constraints on being able to do more, such as physical bottlenecks in relation to skilled labour and materials. But it is something we will keep under review.

[Sir Edward Leigh (Gainsborough) (Con)]

Perhaps the current Conservative Chancellor of the Exchequer could remind the previous Conservative Chancellor of the Exchequer that, given where our electoral support comes from, it might not be wise politics to impose a targeted new tax on our older supports. He could also remind our right hon. and learned Friend that he will be delighted to know that after we leave the EU we will be saving £12 billion a year in contributions.

[Mr Hammond]

I assume that my hon. Friend is referring to the previous Conservative Chancellor but one, in which case I think our right hon. and learned Friend has probably heard him.

Business of the House

Edward Leigh Excerpts

Thursday 11th January 2018 Commons Chamber

[Paul Maynard]

I am grateful for the hon. Gentleman’s ingenious word play, and I sometimes think I should play a game of bingo with his appearances in the Chamber, because I measure the success of my colleagues from Scotland not just by what they do, but by how often the hon. Gentleman refers to them, as I know that the more he refers to them, the better the job they are doing.

The hon. Gentleman expresses concern over the EU Bill. He will have heard from the Chancellor of the Duchy of Lancaster just yesterday that negotiations are intensifying over getting the clause in question right, and when they have agreed, it will appear on the Order Paper. Perhaps the hon. Gentleman can use his immense influence in Edinburgh to help ensure those negotiations go as speedily as possible. We are keen to get that amendment on the Order Paper; I hope he is just as keen. Let us help him to help us.

[Sir Edward Leigh (Gainsborough) (Con)]

As we know, the best way to get a good deal out of the EU is to make it clear to the EU that we are prepared for no deal, so when we debate the withdrawal Bill next week, will we have the Minister for hard Brexit in the Chamber, as we were promised before the reshuffle, so we can question him or her—and if not, why not?

Budget Resolutions

Edward Leigh Excerpts

Thursday 23rd November 2017 Commons Chamber

[John McDonnell]

The issue is that whatever was put forward in the Budget yesterday was so trivial that it will not have the effect that is required.

Investment by businesses is the lowest in the G7 countries. The few measures announced yesterday just will not address that. They will not close the gap between the south and the rest of the country by investing in a rail project in the north-east that will receive just 2% of the total cost of Crossrail in London. Our economy and our people will only reach their potential when there is real new investment brought forward by Government on a scale that is needed to meet the opportunity. The right approach from 2010 would have been to target the real economy and real investments to produce growth and so bring the deficit into line. Because the investment that was needed then did not materialise, productivity growth has stagnated, and because productivity growth has fallen away, the forecast deficit has been widened by the OBR to some £30 billion by 2021. The Government know that austerity is not working. They have now been reduced to fiddling the figures to meet their own targets.

[Sir Edward Leigh (Gainsborough) (Con)]

rose—

[John McDonnell]

Let me just quote the OBR, because it is important. On how the Government will meet some of their targets, the OBR was damning. It said that

“the Government has ensured that net debt still falls fractionally as a share of GDP in 2018-19…It has achieved this largely by announcing fresh sales of RBS shares and by passing regulations that ease local and central government control over housing associations in England.”

That is creative accounting on a scale that we have not seen under any Government. In other words, the Government have met their own debt target—barely—by exploiting a reclassification of housing association debt and putting in some extraordinarily optimistic forecasts for their sale of RBS shares.

[Sir Edward Leigh]

I am very grateful to the right hon. Gentleman for giving way. I am genuinely trying to find a way out of our problems that we agree exist. I accept his point that he wants to borrow more to invest. The trouble is that we are already paying in interest more than we spend on defence and the police—that is just paying interest on our debt. I understand where he is coming from, but whatever we spend this money on, the interest will still be accrued, so how will he deal with that?

[John McDonnell]

Debt under the hon. Gentleman’s Government has gone up by nearly £800 billion, and it is debt to pay for failure rather than to pay for investment. If we borrow to invest, we grow the economy, which means that we can put more people to work with more skills and higher wages. They pay more taxes and it pays for itself. That is the lesson that the Government still have not learned.

The Government appear, as is demonstrated today, to be completely out of touch with the mess that our economy is in. They have no understanding of the consequences of their choices for the lives of our people. They do not seem to grasp the scale of what is happening to our people out there. The Chancellor has tried to claim that income inequality has fallen, but he does not seem to be aware that more than a million food parcels have been handed out in this, the sixth richest economy on the planet. Inequality is not falling. He may well be aware that London is home to more billionaires than ever before, but does he know that there are more people homeless than ever? How can he claim that inequality is falling when that stark comparison is made? This Government’s decisions will make the poorest poorer still. Buried away in an annex, at the very back of the Treasury’s own distributional analysis, is the truth on this. The poorest fifth are being made poorer by the changes this Government is implementing. Those in the poorest fifth will lose almost £250 a year.

The House of Commons Library has confirmed that the burden of cuts—86%—made in tax and benefits measures since 2010 have fallen on women. Is that what equality is under this Government—86% of cuts on the shoulders of women?

Duties of Customs

Edward Leigh Excerpts

Ways and Means resolution: House of Commons
Monday 20th November 2017 Commons Chamber

[Ian Murray (Edinburgh South) (Lab)]

With deep pleasure, I beg to move amendment (e), in paragraph (a), after “goods”, insert

“other than goods originating from the European Union”.

I will also speak to amendment (f). Both amendments stand in my name and the names of my right hon. and hon. Friends.

Let me first say to the hon. Member for Aberdeen South (Ross Thomson) that, although I did not agree with a word he said, I thought he made a good speech. However, while he and I have always disagreed on the European Union and we respect each other’s position—I am very much an elected Member of Parliament who wishes to stay in the EU; I am pro-European Union and he is very much anti-European Union—I have to point out to him the complete intellectual incoherence of the two arguments he makes. He says we can leave the single market, the customs union and European Union and have a frictionless, seamless, invisible border between Northern Ireland and the Republic of Ireland, but during the Scottish independence referendum campaign, he argued that leaving the UK single market would result in a hard border in goods, services and the movement of people. He does the fight against the scourge of independence in Scotland no good by making those contradictory arguments. Many of the arguments that our colleagues in the Scottish National party make about staying in the European Union and working with our closest colleagues and neighbours with regard to trade in goods and free movement of people completely contradict their arguments on coming out of the UK single market. These positions are contradictory, and I warn politicians that when they play with fire, they get burned.

[Sir Edward Leigh (Gainsborough) (Con)]

May I bring the hon. Gentleman back to amendment (e), to which he is the lead signatory? It would close off options and prevent us from imposing any tariffs on goods from the EU. The hon. Member for Bootle (Peter Dowd) described such closing off of options as “pathological”. The hon. Member for Edinburgh South (Ian Murray) always strikes me as a very nice chap; does he share my concern that his own Front-Bench spokesman thinks that amendment (e) is pathological?

[Ian Murray]

I anticipated that intervention, although not quite so early in my speech. I return the hon. Gentleman’s compliments—he is one of the nicest gentlemen in this House. The Labour party’s position on the customs union is that we want the UK to have tariff-free access to the European Union throughout the transition period, with the added option of the UK staying in the customs union. That is the position of our Front-Bench team. It is perfectly clear and chimes perfectly well with amendments (e) and (f).

I am disappointed that the amendments in the name of the hon. Member for Aberdeen North (Kirsty Blackman) were not selected. She has done a lot of work to bring the Ways and Means motion to the House, and I think the arguments advanced reflect the fact that we both want our country to stay in the single market and the customs union, not for ideological reasons, but because we know that the businesses of Aberdeen North and Aberdeen South require us to stay. It is impossible to suggest that the United Kingdom should have exactly the same benefits of the single market and the customs union, with a frictionless border and tariff-free access, but not keep the customs union and the single market on the table. It makes no sense.

--- Later in debate ---

[Ian Murray]

I am grateful for that intervention. I said earlier that nobody voted in the EU referendum to be poorer, yet all the analysis shows that we will be. I would be delighted, if the Minister wants to intervene, if he can point to any analysis done internally, externally or otherwise—by any other Government in any country, any think-tank, any organisation, any business organisation, any individual business—saying that what the Government are offering will make the country better off. I will let him intervene now—I know he is listening; he is just pretending to ignore me. The answer is: absolutely none. The silence is deafening. Not even the producers of our microphones will make more money, because the Minister refuses even to use his to point to just one organisation that says our position will be even remotely similar once we have left the EU. The answer is clearly none. The Government are on the wrong track and gambling everything—the family silver, everything—on a no-deal scenario.

On the impact of our leaving the customs union, I want to deal with a few particular sectors. My hon. Friend the Member for Penistone and Stocksbridge (Angela Smith) mentioned the automotive sector earlier. The Society of Motor Manufacturers and Traders, which is an organisation whose briefings on Budgets and Bills we, as parliamentarians, trust and which I always read with great interest—it is the knowledge in motor manufacturing —has said that going off the cliff and moving to trading on WTO rules would see a 10% tariff on vehicles and an average 4.5% tariff on car components. These figures have been repeated in the House ad nauseam. It also said it would push the cost of an average car up by £1,500. We have already heard figures recently showing new car sales and levels of new car manufacturing dropping dramatically. I think that most people considering whether to buy a new car would decide not to if they knew it was costing an additional £1,500. I appreciate that the Minister does not agree, but I am more likely to believe the SMMT’s figures than the Government at the Dispatch Box saying, “Don’t worry. Everything will be all right on the night”, without giving us any detail about how that could possibly operate in the context of no customs union and no customs arrangements.

[Sir Edward Leigh]

Is the hon. Gentleman happy, then, for us to be locked for all time into a situation where we can never make a free trade deal with any country, bloc or anybody outside the EU, locked into a body with a declining share of trade and locked out of free trade deals with the growing markets in Asia and America? He is happy with that, is he?

[Ian Murray]

I am happy with the intervention—I am delighted with it—because it allows me to say three things: first, the reason the Scotch whisky industry is doing so well is partly because of EU free trade arrangements, particularly with countries such as South Korea; secondly, we are already in 57 free trade agreements; and thirdly, the hon. Gentleman’s Government have failed wholeheartedly to start to negotiate just one free trade agreement, despite all the bluff and bluster about being at the front of the queue, about their happening easily, about our seamlessly entering into these wonderful free trade agreements all over the world.

I say also to the hon. Gentleman that his intervention completely contradicts his first intervention. If he votes against my amendment and we end up trading with WTO rules, and we end up without tariffs with the EU, we will have tariffs with no one and we will ride the waves—rule Britannia—setting up more than 57 free trade agreements with every country banging at our door to trade with us. He is not listening to his Foreign Secretary or Trade Secretary when they say this is becoming much more difficult, if he thinks that free trade agreements with more than 57 countries will just appear as low-hanging fruit from this magic money tree the Government seem always to produce.

Oral Answers to Questions

Edward Leigh Excerpts

Tuesday 24th October 2017 Commons Chamber

[Andrew Jones]

The hon. Gentleman seems to have forgotten the announcement of the national productivity investment fund—a £23 billion pot of money for investment in infrastructure, including digital infrastructure, across the country. I have already mentioned the £400 million digital infrastructure investment fund and the £740 million for full-fibre broadband and 5G. We are already approaching the figure of 95% of UK premises having access to superfast broadband by the end of the year, and that puts us in a strong place for the future.

[Sir Edward Leigh (Gainsborough) (Con)]

5. What steps he is taking to reduce tax-related bureaucracy for small and medium-sized enterprises in the east midlands.

[The Financial Secretary to the Treasury (Mel Stride)]

The Government are committed to reducing the administrative burdens for small and medium-sized enterprises, including in the east midlands. That is why we delivered £272 million of net reductions in administrative burdens between 2011 and 2015, and why we continue to reduce unnecessary interaction with the tax system.

[Sir Edward Leigh]

We still have one of the longest tax codes in the world. I know that the Treasury is under constant pressure to bung extra pieces of money to particular interest groups, but may I suggest to the Minister that he sticks to his last on the Treasury Bench and argues the case for less taxation, simpler taxation and less debt? That is the best service we can give to the young and to businesses.

Finance Bill

Edward Leigh Excerpts

Tuesday 12th September 2017 Commons Chamber

[Mel Stride]

My hon. Friend is right, which reminds us of the overall purpose of raising tax and ensuring that we bring it in, namely to live within our means, pay down our deficit and, critically, have the fine public services that are a hallmark of a civilised society. All of us can unite in wanting that.

The Bill legislates for new rules to prevent large multinational businesses playing the system by claiming tax deductions for excessive interest expenses and ensures that companies cannot use losses to pay no tax even in years when substantial profits are made. In last week’s debate, I was somewhat surprised by the concerns raised by some Opposition Members about the provisions relating to the taxation of businesses trading in Northern Ireland. They are nothing new. They were announced in the 2016 autumn statement and do not create a tax loophole. The legislation simply ensures that all small and medium-sized enterprises with trading activity in Northern Ireland will be able to benefit from the Northern Ireland corporation tax regime in the same way as larger companies already can, and it also introduces additional anti-avoidance rules to ensure that the regime operates as intended. The Bill’s provisions do not weaken that at all; they simply mean that more businesses will be able to apply the regime to the taxation of profits genuinely arising, and only arising, from activities carried out in Northern Ireland once the regime is put into effect.

[Sir Edward Leigh (Gainsborough) (Con)]

My right hon. Friend refers to the taxation and regulation of business, but once we are in the hard, bracing winds of international free trade after Brexit, does he agree that it is essential that our Government ensure that we have a low-tax, deregulated, pro-business environment so that our businesses can compete on the world market?

[Mel Stride]

My hon. Friend is entirely right. That is why the Government have been clear through our tax planning and the information that we have been signalling to the marketplace. Certainty for business is extremely important, which is why we have lowered corporation tax and have stuck to that position. We are making considerable progress, and I will take my hon. Friend’s point on board.

In short, the Bill continues our hard work to drive down the tax gap and ensures that we will provide a fair and competitive tax system. The other part of the deal is that those taxes must be paid.

Oral Answers to Questions

Edward Leigh Excerpts

Tuesday 18th July 2017 Commons Chamber

[Stephen Barclay]

The hon. Lady will be aware that when the Home Office grants refugee status, it includes the biometric residence permit as proof of the holder’s right to stay, but I am very happy to discuss with the hon. Lady any further measures that she feels would be helpful.

[Sir Edward Leigh (Gainsborough) (Con)]

T3. To promote the drive towards world free trade, will the Chancellor of the Exchequer assure the House that he is absolutely, personally and enthusiastically committed to following our manifesto commitment to leave not just the EU at the end of 2019, but the single market and the customs union?

[Mr Philip Hammond]

Yes, I have made it clear on many occasions that when we leave the European Union on 29 March 2019, we will also leave the single market and the customs union. Those are matters of legal necessity. My focus is on ensuring that thereafter we put in place the closest and deepest possible partnership with our European neighbours that will allow us to continue the patterns of trade and business, patterns of security co-operation and patterns of educational exchange and scientific and research collaboration that we enjoy now. That is the best way to protect Britain’s prosperity.

Economy and Jobs

Edward Leigh Excerpts

Thursday 29th June 2017 Commons Chamber

[Mr Hammond]

My hon. Friend is exactly right, and if he bears with me, I shall continue.

That black hole of £8.6 billion a year and rising in taxation will have to be filled by raising tax on ordinary people, and that was just the manifesto. Since the Leader of the Opposition got his new suit, he has been out and about, flinging spending commitments with gusto at anyone he comes into contact with—another £9.5 billion of unfunded commitments for each year of this Parliament. Added to the hole in Labour’s tax plans, that is an additional £90 billion over the course of the Parliament that has to be raised in taxation on ordinary working families.

Let me say that again for the right hon. Member for Hayes and Harlington: £8.6 billion a year of under-recovered tax, according to the IFS, and another £9 billion-plus a year that his right hon. Friend the Leader of the Opposition added in additional unfunded commitments after the manifesto was published. In short, that is the Opposition’s approach to the type of tough decisions that have to be made every day in government about prioritising limited resources—“Should we do x or should we do y?” His answer is just yes: more everything for everyone, and all of it for free—a catastrophic recipe for economic and fiscal disaster.

[Sir Edward Leigh (Gainsborough) (Con)]

In the 10 minutes or so that my right hon. Friend has been speaking, our national debt has increased by nearly £900,000. Will the Chancellor continue to speak up for hard-pressed taxpayers and make the point that, for all this talk of austerity, the debt is still rising? We have to look after the pennies, otherwise we will be up Queer Street.

[Mr Hammond]

My hon. Friend is absolutely right. The debt is still rising, but next year, for the first time in 20 years, we expect to see it beginning to fall as a percentage of GDP—a remarkable achievement after the trashing of our economy by the Labour party in government.

Palace of Westminster: Restoration and Renewal

Edward Leigh Excerpts

Wednesday 25th January 2017 Westminster Hall

[Sir Edward Leigh (Gainsborough) (Con)]

I agree with the hon. Member for Rhondda (Chris Bryant) that the Government need to get on with this and that we need a proper debate on the Floor of the House. It is not acceptable—this is not the fault of the hon. Gentleman—that we now have only 10 minutes, if my hon. Friend the Member for North West Cambridgeshire (Mr Vara) is called now, to hear an alternative point of view, and there is an alternative point of view. It is held by people who are just as committed to maintaining safety as anyone else.

I congratulate the Committee. We all love this place and we all want to preserve it for future generations, but there is an alternative point of view. I urge the Government to bring a motion to the Floor of the House. If the building is at such risk and if there is a real danger of fire, we need this debate. We were promised it yesterday, so let us have it in two or three weeks and get on with coming to a decision. We should base the debate on the draft motion provided by the Joint Committee of both Houses on page 100 of its report. I for one will seek to table an amendment to it. We already have scores of names on that amendment and we will have a full debate and the House will make its mind up. Let us get on with it.

My view is well known and my amendment will say that we should start work now. We are already spending £100 million, so we should start work now. We should retain ultimate control, although I accept that no one is suggesting that Members of Parliament should be telling builders, architects and surveyors which part of the building to close at any time. There is doubt about passing too much control to an enabling authority, so we must retain ultimate democratic control.

The third vital point of view, which is held by many Members of Parliament and many peers, is that, as during the second world war, the House of Commons debating Chamber should, at all times, retain a presence in the old Palace of Westminster. The hon. Member for Rhondda briefly alluded to the fact there is an alternative, expert, independent point of view that, instead of building what I would deem to be a folly costing £85 million of a replica chamber in the courtyard of Richmond House, we should, as in the war, use the House of Lords Chamber with a line of route through Westminster Hall and St Stephen’s chapel to the House of Lords Chamber.

The Government have come up with a reply to my proposal and, as the hon. Member for Rhondda mentioned, stated it will cost £900 million more. We dispute that. My architect tells me that people persistently miss the point that our option is a total shutdown, not a hybrid of options 2 and E1. The point is that our proposal is a total shutdown of the mechanical and electrical systems with a full strip-down from day one. The temporary services of the Lords and Royal Gallery are just that—temporary, not lash-ups keeping part of the existing services going. Both the financial impact in section 2.5 most importantly, and the timing in section 2.3, are based on a false premise and exaggerated. The problem is that the writers of the report are not engineers. A properly briefed engineer would pick up that point immediately.

There is an alternative point of view and we will put it during this debate—time is short and I want to give my hon. Friend the Member for North West Cambridgeshire a chance to say a few words. He will talk primarily about the figure. I want to talk about the 1 million visitors to this place every year. We are talking about those who propose a full decant. By the way, I must repeat that the report says the matter is so urgent, but a full decant would not take place until 2023.

I accept that we are going to move back to this place. I have never used the argument that we will never move back. We will eventually move back, but I do not believe it will be in five years. When we lose control, it could be six years. When I was shown round on a tour of the basement, I was told privately that it would be eight years. It is a long time and we would pass away control.

This is not just about us, but about the 1 million people who visit this iconic place every year. My proposal, which I believe is a sensible compromise—services could be taken into the House of Lords Chamber if necessary from outside, so we could shut down all services in one go if we wanted to—would at least keep Westminster Hall open to the public and keep the debating Chamber.

My final point is that, during the second world war, both Attlee and Churchill made an absolute political decision that the Nazis would not bomb us out of this building. We decided to stay here which is why, despite the massive damage to the building, we kept the debating Chamber of the House of Commons in the House of Lords throughout the second world war. Although the issue is not primarily about sentiment or emotion, this is not an office block. If it were I would agree we should move out, but it is not. It is the centre of the nation and the nation should keep its debating Chamber in this building.

Summer Adjournment

Edward Leigh Excerpts

Thursday 21st July 2016 Commons Chamber

[Martin Vickers (Cleethorpes) (Con)]

Like many Members who have already spoken, my contribution centres on rail services, in particular the recent decision by the Office of Rail and Road not to approve an application for direct services from Cleethorpes through to London King’s Cross.

To provide historical context, I happen to have an Eastern Region timetable for 1964, and Members should be aware that there were at that time two direct services from Cleethorpes to London King’s Cross. But before Opposition Members get excited and say, “That was in the nationalised British Rail days,” I should also point out that actually in 1992 British Rail announced it was scrapping the direct services from Cleethorpes.

Since then, although the service has improved in the sense that it is more regular, it does involve a change. The Government have repeatedly pointed out that if we are to improve the local economy and extend growth, we will need greater transport connectivity. The Humber region has the largest port complex in the country and it is developing the offshore renewables sector. Calls for regular direct services are supported by business and industry, the chamber of commerce and the two local enterprise partnerships to which the local authorities belong.

Two years ago, GNER lodged an application with the regulator to operate four daily trains between Cleethorpes, Grimsby and King’s Cross via Scunthorpe and Doncaster. I recognise the need to regulate capacity on a network that is already overcrowded, but I question whether the rules and regulations that govern the regulator actually work in the best interests of passengers. Perhaps they work more to protect the market share of the train operating companies.

[Sir Edward Leigh (Gainsborough) (Con)]

The direct line to London from Cleethorpes that my hon. Friend has mentioned, which was scrapped in 1992, ran through Market Rasen in my constituency. Since 1992, therefore, the good people of the town of Market Rasen and its catchment area of nearly 60 square miles have had no direct service to London at all. Is it not incumbent on the Government and the rail regulator to consider the interests not only of the big operators but of the local people? Can we have a delegation to the new Secretary of State to try to impress on him the need to serve rural lines?

[Martin Vickers]

I thank my hon. Friend and neighbour for his intervention. He has stolen one of my lines: I was going to conclude by asking for a delegation to go to the new Secretary of State and to the rail Minister.

The rail regulator operates under criteria set down by the privatisation legislation, which state that the regulator must promote improvements in railway service performance, protect the interests of users of railway services, promote the use of the network for passengers and goods and promote competition for the benefit of rail users. The criteria go on to state:

“We would not expect to approve competing services that would be primarily abstractive of the incumbent’s revenue”.

In other words, it is there to protect the market share of the big franchise holders such as Virgin East Coast. I understand that the franchise holders pay an enormous fee to the Government for the privilege of operating the east coast main line or any other line, but I question whether the present criteria operate in the best interests of the passenger.

The regulator, in its decision letter, goes on to state:

“We have a long-standing policy of not approving new open access services that we consider are ‘primarily abstractive’”—.

that is to say, services that would abstract funding from the main operator. I repeat that this sounds far more like protecting the operators than providing better services for passengers. In the decision letter, the regulator refers specifically to the application to run services to Cleethorpes, stating:

“These financial impacts would have been reduced had the application focused on serving…just the Cleethorpes line”.

Because the application included additional services into Yorkshire, serving the Bradford and Halifax area, that would have impacted too greatly on other operators. The letter continues:

“On balancing our statutory duties, particularly those to promote improvements in railway service performance, protect user interests and promote competition against our duty to have regard to the Secretary of State’s funds, we saw the abstraction as a significant adverse impact for this option.”

New rolling stock is coming into the network, thanks to the improvements and investment that the Government and the train operators are making in the coming years. That will release rolling stock that is currently in use elsewhere for use on secondary main line services. Services through Market Rasen and Lincoln going through to Grimsby and Cleethorpes suffer because they are not part of the electrified network, and there is only a limited number of diesel units available to serve those routes. However, some new bimodal units are becoming available that will be able to run the last few miles under diesel power. This is an ideal opportunity to extend services to places such as Cleethorpes.

Hints from the rail regulator suggest that it sees the difficulties in the present system and would like to accept more open access operations, but as I have said, the criteria are restricting it at the moment. The new rail Minister, the Under-Secretary of State for Transport, my hon. Friend the Member for Blackpool North and Cleveleys (Paul Maynard), successfully campaigned for direct services to his Blackpool constituency, off the west coast main line, so he ought to be sympathetic to the requests from my hon. Friend the Member for Gainsborough (Sir Edward Leigh), me and others in northern Lincolnshire for improved services.

When the Secretary of State for Transport introduced the privatisation legislation in 1992, he said:

“Our objective is to improve the quality of railway services by creating many new opportunities for private sector involvement. This will mean more competition, greater efficiency and a wider choice of services more closely tailored to what customers want.”

I think that that has been achieved in part. As I have said, the services into my area have been vastly improved compared with the British Rail days, but we have a long way to go. Customers are rightly demanding more and better services. I urge the Department for Transport to drop its opposition to new long-distance open access services on routes that are not currently served by direct services. We need not only better access to the London network but improved east-west connections, and I urge the Minister to pass my concerns on to the Secretary of State for Transport and tell him that it is time to put passengers ahead of the train operating companies.