Rail Fares

Iain Stewart Excerpts

Wednesday 11th January 2012 Commons Chamber

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

I am disappointed by the text of the motion. We could have had a sensible and mature debate on the future of the rail industry, its costs and the appropriate balance between revenue from the fare box and from the taxpayer, but instead we have merely had cheap political point making, which does no one any service. From listening to some contributions, one would have thought that train fare increases occurred for the very first time in January of this year, whereas there have, of course, been increases for many years.

For many years before I was elected, I commuted daily up and down the west coast main line between Milton Keynes and Euston. Every year, the season ticket went up a couple of hundred pounds. Now, it is about £5,000, and if one adds on parking charges, that is a huge sum of money to come out of people’s pockets after tax. I acknowledge that that is a huge cost, but we need to have a sensible debate about how we move forward from here, rather than just engaging in cheap point scoring across the board. I hope that the Select Committee on Transport, on which I serve, will turn its attention to this issue at some point this year, once the Government have published their fares review and response to McNulty.

In the short term, it is important that we do what we can to cap fares, and I welcome the announcement in the autumn statement that we are scaling back from RPI plus 3 to RPI plus 1. However, it is also important that passengers see something for what they are paying. I applaud what the Government have done to prioritise investment in the rail industry, and we have seen some examples of that on the line I use. It is far from perfect, but there are measures to tackle overcrowding. We have a new fleet of trains, and just this week, Virgin Trains announced that an extra three of its fast trains will stop at Milton Keynes during the evening peak. That will go some way towards relieving overcrowding, and many of the Pendolino trains are being lengthened. Some tangible improvements are therefore happening, although not as fast as I would like—I would like more trains to stop during the peak morning period—but, this is a welcome first step.

Also welcome is the announcement in the autumn statement about the East West Rail line, which will connect my constituency westwards to Oxford, and southwards to Aylesbury and on to London. I hope that, in the fullness of time, we will extend eastwards towards Cambridge, so that I can go and see my hon. Friend the Member for Cambridge (Dr Huppert) in record speed. However, I suspect that that is a little while off. The key point is that these are tangible improvements in the short term that passengers can see for the extra money they have to pay.

However, there are long-term structural issues within the rail industry, and we need to have a frank and honest debate about how we move forward. We should look not just at this country, but overseas to what other countries do. During the summer recess, I had the great privilege of travelling to Switzerland as the guest of the Swiss railway to examine its system. It has increased cost pressures, as well. We hold up the Swiss railway example as nirvana—the goal that we want to achieve—and in many respects it is, but it is having a big argument at the minute about putting up rail fares to pay for increased infrastructure investment in order to increase capacity. So, this problem is not unique to this country.

However, there are certain parts of the Swiss system that we should look at. In the one minute and 50 seconds remaining to me, I do not have quite enough time to go into that issue in depth, but the Swiss have what they call the general access card, which covers public transport costs across all modes, be they rail, tram, ferry or bus. We should encourage measures in this country to improve transport integration, which has long been talked about. The former Deputy Prime Minister, now Lord Prescott, proclaimed that we would have a committee for integrated transport; however, 13 years on, little has been achieved. We need to address such issues and to look at the long-term costs within the rail industry. Our rail costs are among the highest in the world, and we should not just accept that the existing situation must be preserved in aspic for ever.

Some tough issues have to be addressed and it is not going to be easy, but I am looking forward to having a sensible debate. I hope the Transport Committee will tackle these key issues when we conduct our inquiry, hopefully later this year, and that we can have a sensible debate, rather than the petty and pointless political point scoring that has happened today. There are many sensible Opposition Members with whom I serve on the Transport Committee, and I hope we can have a decent discussion and explore all the issues.

--- Later in debate ---

[Heidi Alexander (Lewisham East) (Lab)]

Let me start by picking up on the last point that the hon. Member for Blackpool North and Cleveleys (Paul Maynard) made. He suggests that this debate was thrust on our Front Bench. Far from it; I believe that a number of Members desperately want to discuss this issue—[Hon. Members: “Where are they?”] Well, I am here and if hon. Members will grant me the courtesy of listening, I will tell them that my constituents e-mail and write to me on a weekly basis about this issue, and when I knock on their door they talk to me about the affordability of the railway. My constituents depend on the railway far more than most Members’ constituents, partly because there are not a huge number of locally based jobs in the area of Lewisham that I represent. Most of my constituents who work—70%—travel into central London, down to Croydon and out to Bromley using the railway, not the tube, and sometimes the bus to go about their daily life. The railway and the affordability of train fares are critical to my constituents. That is why we are having this debate today.

I was struck by the comments of the hon. Member for Milton Keynes South (Iain Stewart), who said that train fares have been increasing for a number of years. That certainly has been my experience as a London Member of Parliament, but the real difficulty this year is that the train fare increases are particularly hard to stomach given that they come on top of so many other increases in the cost of living, such as in utility bills and food. Constituents are coming to us and saying that their housing benefit is being reduced, and it is a real kick in the teeth when train and bus fares are being hiked by such considerable amounts this year.

[Iain Stewart]

The two issues that the hon. Lady has just mentioned are not separate points, because trains require energy to run on and if energy costs go up the operating costs of the railways also go up. One cannot simply differentiate those two issues.

[Heidi Alexander]

Energy was just one of the things that I mentioned. Most people would recognise that the cost of living is going up considerably. However, I agree with the hon. Gentleman when he says that, with fares going up, our constituents—the public—expect to see an improvement in service, getting some bang for their buck. When the trains roll into stations in my constituency, they are rammed full of people. This morning I tried to get on the 8.32 train from Lewisham and had to wait for the next one to come along. The previous Government put in place a number of measures to increase capacity on some of the suburban lines coming into London.

High-speed Rail

Iain Stewart Excerpts

Tuesday 10th January 2012 Commons Chamber

[Justine Greening]

I cannot make that commitment. We are just at the business of assessing what the line route is—I made my decision on that today, and will continue to develop the phase 2 route. I think decisions about how the train service will be operated are ones for further in the future, but of course we will look to do what we think is best value for the taxpayer and the travelling passenger.

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

The long-term benefits that High Speed 2 will bring to my Milton Keynes constituents will be welcome, by freeing up capacity on the existing line. However, there is overcrowding now, which will get worse before High Speed 2 opens. Will my right hon. Friend assure me that the Government will continue their impressive record of investment in the classic network, to meet demand in the period before HS2 starts?

[Justine Greening]

I can tell my hon. Friend that there will be 106 extra carriages serving his stretch of line, and I think that shows that this Government are committed to making sure that we get investment in our railways in the short and medium term as well as the long term.

Bus Services

Iain Stewart Excerpts

Thursday 1st December 2011 Westminster Hall

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

It is always a pleasure to serve under your chairmanship, Mr Bayley, and I add my thanks and congratulations to the Chair of the Transport Committee, the hon. Member for Liverpool, Riverside (Mrs Ellman). She comprehensively set out the evidence taken by the Committee and the conclusions that it reached, and I was proud to be part of that investigation.

I wish to pick up on one or two points in the report, add some experiences from my local area and give one or two international examples that I have researched. I was struck by the variation in the ways that local authorities around the country responded to the admittedly challenging economic circumstances in which we now operate. Some authorities have taken a hatchet to bus services. The hon. Member for Hartlepool (Mr Wright) gave evidence of that from his area. Other authorities have responded innovatively and positively and worked hard to protect local bus services.

I shall give an example from my own local authority in Milton Keynes. It predates the comprehensive spending review. Just after I was elected, in May 2010, the local bus operator, Arriva, completely reorganised its network and timetables. It said that it had had a consultation on that. As my hon. Friend the Member for Blackpool North and Cleveleys (Paul Maynard) said, it was anything but a consultation. Indeed, some people turned up on the first Monday of the new system, expecting their usual bus to turn up, but it was not there. In the first chaotic few weeks of being a new Member of the House, my mailbag and e-mail inbox were flooded with complaints from patients who could not get to their GP surgery, from students who had missed exams and from shoppers who could not get to their local shops. There were all sorts of problems. That was one of the first big local issues that I had to deal with. I was lucky enough to be able to secure an Adjournment debate in the Chamber in the first few weeks after the election. The Minister may recall responding to it.

I am happy to report that many of the problems have now been remedied. The situation is not perfect, but through work with the local council, with Arriva and with the new bus users group that was set up, many of the problems have been solved. I raise that as an example because consultation is vital. Bus services need to be responsive to the needs of the local area, and those needs may change as time goes on. It is important to talk to the users—the bus passengers—but also to the local service providers, such as the GP surgeries, local colleges and schools and retailers, so that a local bus service is provided that people want to use and that generates additional traffic.

Another issue in relation to which good local consultation is vital is concessionary fares. We have talked about the concession card. I am glad that that has been preserved, but of course it applies only to off-peak services, and one problem identified to me locally is that pensioners want to use buses in the peak time. Some still wish to work; we are all being encouraged to work for longer and longer. They also have to get to some services before the 9.30 am cut-off. The shadow Minister, the hon. Member for Barrow and Furness (John Woodcock), indicates from a sedentary position a financial issue. I am happy to report that in Milton Keynes we have come to a deal. This relates to the point about consultation. The local authority and Arriva have worked together to provide not free bus travel for pensioners before 9.30, but a concessionary fare of 50p a journey. During consultation, people who would be using the buses said that they would be happy to pay a fare at that level. That was found out through a very effective form of local consultation.

As other hon. Members have said, it is important to share that good practice throughout the country, because some local authorities clearly have not taken that approach. The evidence from my area is that the local authority has done that. I strongly urge the Minister to take up the recommendations that the Select Committee made about a consultation toolkit and a mechanism for disseminating good practice throughout the country. I have a fairly open mind about what the best forum for that is. It may be the Department itself, the Local Government Association or another forum. Clearly, there are examples of good and bad practice, and we need to ensure that the good practice is rolled out as far as possible.

I want to touch on not just current bus services, but the planning for future bus services. Milton Keynes is a fast-growing area, so what applies to us may not be relevant in other areas, but with house building forecast to grow quite significantly in future years, I think that such planning will be an important issue in many areas. I am talking about planning properly for new bus services. I want to highlight the Oxley Park area of my constituency. That is a new-build housing estate on the western edge of Milton Keynes. The good part was that there was a plan for a new bus route going through it, with stops all the way along so that people could easily get to the centre of Milton Keynes and to other key destinations in the authority area. That was all well and good, and it was financed by some section 106 money and through other agreements with the house builders to put in that facility.

The problem has arisen because the design of the estate had to meet density targets. The houses are crammed in; the main road through the estate is quite narrow; and there is not sufficient car parking space. That means that the bus drivers have to go through a chicane of parked cars. Sometimes they cannot get through at all. There are issues of road safety: there are many young families in the area, and kids naturally want to play outside. There is also a noise problem because the houses have been built right up to the pavement. The buses, with diesel engines, make a noise, and the service runs until quite late, so I have had many complaints from residents saying that they cannot get to sleep because of it. That is providing a disincentive to bus use—people are campaigning for the bus route to be removed.

However, with proper planning—I welcome the provisions of the Localism Act 2011 on better community involvement in designing new housing areas—we should be able to plan new housing areas with bus routes in a way that does not cause problems and in such a way that people want to use them. I hope that the Minister will liaise with his colleagues in the Department for Communities and Local Government and take that suggestion forward.

I have one other point about local consultation, and it relates to finding innovative new ways of delivering services. Milton Keynes is largely an urban area—85% of the population of the local authority area lives in the urban centre of it—but it covers quite a wide rural hinterland as well. There are quite a number of small villages on the outskirts with very small populations. Most of those people drive, but there are a few people for whom a bus service is a lifeline, although it is not commercially viable to provide a regular bus service that one person uses every other day. As far as I am aware, the council has not come to any conclusions, but it is exploring innovative new ways of not having a bus service but helping people to use a local taxi service at no additional cost over what the bus fare would be. I am talking about a more responsive service, which they will want to use, as opposed to a static timetable that may be inconvenient for them. Again, that is where local innovation can come to the fore. There will be plenty of other examples across the country, and those good ideas can be shared.

I want to move on to a more general point about strategic planning in relation to buses. Buses have always been the poor cousin of the transport system. Having to use a bus is almost looked down on, but that need not be the position. I shall give an international example. In the summer recess, I was invited to go to Switzerland by Swiss Federal Railways. That was primarily to look at its railway system, but as part of the visit, we looked at its transport system and planning as a whole. On one of the days, we went to visit the small city of Zug, just south of Zürich. It has put in a new commuter railway line from the city centre to the outskirts. We travelled on that and got to the suburban station. We then watched what happened. A train arrived from the centre of town. Everyone got off and went to the adjacent bus station, where six buses were waiting. Five minutes later, they all dispersed to the housing areas around the station. Fifteen minutes later, they all came back in, and the passengers had five minutes to cross to the railway platform. The next train then went back into the centre of Zurich. The system was integrated, with some public and some private operators, who worked together to provide a reliable and regular service.

Another thing that struck me from that example was the sheer range of passengers using the system. There was everyone, from smartly suited business men to students and shoppers. Everyone was using it—it was a good cross-section of the local community. The system was so well regarded that people wanted to use it. No one was thinking of driving into the centre of town, because they knew that they had a reliable system. We in this country have been poor at that. I am not going to make a party political point—I think Governments of all colours have failed to grasp the option of having a much more integrated across-the-zones transport system. I hope we can have more of that.

I will again cite a local example—the welcome announcement in the autumn statement that the east-west railway line will be built from Bedford, through Milton Keynes, to Oxford and further south-west. I campaigned for that in this Chamber two weeks ago—I had secured a Westminster Hall debate to call for it—and I am delighted that it has been delivered within two weeks. I might have to be careful in what I wish for.

In developing that line, which has a strong case in increasing rail use and encouraging people off the roads and on to rail, how much better would it be if, as part of the planning, the services were integrated with the bus systems in Milton Keynes, Oxford and other places along the route? People who live elsewhere in Milton Keynes who want to travel to Oxford will therefore be able to decide that they can get bus x to Bletchley station and then straight on to a train, rather than say, “I am not sure when I will get there if I get a taxi to Bletchley. I will be better off using the car.” With proper planning, the new transport infrastructure projects can be even more successful than they will be.

Such optimism needs to be part of the bus industry. I was slightly perturbed, when we were taking evidence from some bus operators, that they were not seeing the opportunities in the current climate. I cannot predict what fuel prices will be like in the future—I am not a betting man, but if I were, I would suspect that they will remain high for some time. That surely is an incentive and opportunity for bus companies to say to people, “You do not have pay £1.35 for a litre all the time. You would be much better off getting a bus to your destination.” If bus companies think innovatively and work with local authorities and others to provide new services, there is an opportunity to grow the market.

I am optimistic about the future of bus transport in this country, but we must seize the opportunity. The economic circumstances are challenging—I am not going to get into a debate about how we got here and what the future will be. We have to accept the reality that economic circumstances will be challenging. However, there are opportunities to grow the system and the usage of buses. The Select Committee’s recommendations are helpful in nudging that forward, and there are good international examples that we can follow. I hope that our contribution in the report will help persuade the Minister to take those arguments forward.

--- Later in debate ---

[Norman Baker]

Yes. We will have clarity from the commission, and clarity from the Government on BSOG, in the early part of next year. We will then be able to answer questions in more detail based on what the commission has said.

I think that it is unfair to paint the autumn statement in the negative way the hon. Member for Hartlepool did. He said that things would get worse. I do not want to have a debate about the finances, as this is not the place to do it, but I will give one statistic. The day after the general election, our interest rates were higher than Italy’s. They are now lower than Germany’s, which suggests that the Government are handling the economic position rather better than he gives us credit for.

In addition to the money for green buses announced this week and for retrofitting existing buses, the Chancellor gave transport authorities another £50 million this week in his statement. I hardly think that this has been a bad week for transport, or for local authorities as far as transport is concerned. It seems to be a good week in terms of what has been handed out.

I mentioned that the Competition Commission’s report would be published shortly. The Department has submitted its formal written response to the provisional remedies, which is available to view on the Competition Commission’s website. In the response, I broadly welcomed the provisional remedies. I believe that they have potential to improve multi-operator bus ticketing in particular, and I welcome the commission’s focus on that issue in its recent inquiry into the bus market. There is no question but that better integrated ticketing can help by enabling passengers to make more seamless journeys. Smart ticketing can also play an important role. That is why I have committed to delivering, with operators and public sector bodies, the infrastructure to enable most public transport journeys to be undertaken using smart ticketing by December 2014, to answer the point raised by my hon. Friend the Member for Blackpool North and Cleveleys.

I mentioned the Local Transport Act 2008. There has been some concern that the provisional remedies have been ambiguous in terms of the tools in the Act that can enable authorities to increase the quality of services, so let me be clear. Statutory quality partnership schemes, quality contract schemes and voluntary and qualifying agreements remain useful tools for local transport authorities to deliver their public transport policies. That is the present position. The Government have taken no action to undermine quality partnerships or quality contracts. We will consider where we are after the Competition Commission has reported. In the meantime, it is perfectly open to local authorities to use the terms of the 2008 Act. It is available on the statute book for them to use if they decide that that is what they want to do.

The hon. Member for Bolton West (Julie Hilling) discussed the general price of bus fares. She is absolutely right to express concerns about that. Over the past 30 years, the trend has been that the average cost of travelling by bus has increased more than the average cost of travelling by train or car. We recognise that buses are used disproportionately by poorer people. I want to ensure that we consider that issue in our response to the Competition Commission’s inquiry into the bus market. It is not for us in Government to start telling people how much they should charge for buses in Kettering or anywhere else, but we must ensure that the system and the market work properly, which is what we are trying to achieve as part of our consideration of the Competition Commission responses.

I was interested in the point made by my hon. Friend the Member for Milton Keynes South about the deal reached between the council and Arriva to provide a 50p rate before 9.30. It is an exceedingly interesting idea that a bus company and a council can come together to create a new, innovative arrangement that meets the needs of local people and, presumably, the bus company as well. We need more arrangements such as that, and I hope that we will see what we can do to encourage such innovation across the country.

[Iain Stewart]

I would like to place it on record that a key body instrumental in brokering that deal was the Milton Keynes Pensioners Association. It required good work on all sides, but the association had an instrumental role in helping that deal be struck.

[Norman Baker]

I am grateful to my hon. Friend for rightly putting that point on record.

Several Members raised the importance of consultation. I welcome the Transport Committee’s emphasis on it, and it is right that Members have mentioned it here. It is also right that councils and operators considering changing services consult properly. It is clear from the evidence that the Committee and I have seen that there are some good examples and some pretty ropey ones. The message that I want to give to bus companies and local councils is that they must consult properly and take into account the consequences of any changes that they propose. Actually, if they consult properly, they often get some good and constructive responses and end up with a solution that is better than the one proposed, not just for customers but for the company.

The Chair of the Transport Committee asked when I expect we will know what the Association of Transport Coordinating Officers is doing with its assessment. I mentioned the annual statistics, but the ATCO assessment is happening now, and we expect the results early in the new year. There is no reason why the Department should not share that with the Committee as and when it comes to us, so I will ask my officials to ensure that we are in touch with the Chairman then.

The toolkit has been mentioned by a number of Members. Passenger Focus is gathering evidence from local authorities and bus operators to find examples of good practice. It is receiving good support from the authorities it has contacted and we expect to see a first draft in January, so we and Passenger Focus are making good, swift progress, which is rightly important to Members present.

The only other points that I want to pick up on are two of the issues to which the Chairman of the Committee referred—namely the bus service operator grant and the concessionary fares reimbursement formula. Contrary to the information that has just been provided by the hon. Member for Barrow and Furness, it is a fact that the Confederation of Passenger Transport UK, to which I spoke immediately after the spending review, told me that, in general terms, it felt that the BSOG reduction, given the notice that we had given and the limited amount of reduction, was one that it could in general absorb without fares rising or services being cut. That is what the industry told me. I am happy to give the hon. Gentleman the exact quote if he wants. That is what it said.

Coastguard Modernisation

Iain Stewart Excerpts

Tuesday 22nd November 2011 Commons Chamber

[Mike Penning]

The rescue facilities in the Liverpool area will be enhanced. We will utilise the buildings that we have so that we do not rent new buildings for the sake of it. We will have more trainers, more enhanced staff, and the volunteers will provide a much better service for the public to rely on.

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

Although my Milton Keynes South constituency is probably as far from any part of the UK coastline as it is possible to be, I take a close interest in these matters as a member of the Transport Committee. I congratulate the Minister on balancing so many competing priorities and representations so objectively and fairly, but can he confirm to me that he is still reversing a key flaw in the original proposals, which was for only daylight operations at some stations?

[Mike Penning]

That is one of the key aspects that we examined to see where resilience would come from. As we looked at the possibility of not having a second full-time MOC, the only way to provide resilience was for all the remaining stations to be open 24/7. That is why they will all be operational 24 hours, not just with daylight manning.

Bletchley-Oxford Rail Link

Iain Stewart Excerpts

Tuesday 15th November 2011 Westminster Hall

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

It is a pleasure to serve under your chairmanship for what I believe is the first time, Mr Caton. I am delighted to have this opportunity to help to promote the case for reopening the east-west railway line, which would link Reading, High Wycombe and the rest of the Thames valley with Oxford, Bicester, Aylesbury, Bletchley, Milton Keynes, Bedford and destinations further east.

The campaign is run by the East-West Rail Consortium, which is a partnership of local authorities, the South East Midlands local enterprise partnership, rail operators and Network Rail. The ambition is to have the western section included in the next control period—CP5—and HLOS, the high-level output specification, from 2014. I am in the process of establishing an all-party group to help to promote this campaign.

The east-west railway has the informal and slightly romantic name of the Varsity line, linking as it does Oxford and Cambridge, although the extent of the route is much greater than that, particularly the link to Aylesbury. My comments today will primarily focus on the western end of the east-west rail link. I should make it clear that many, including my hon. Friend the Member for Cambridge (Dr Huppert), regard this section as a vital first step to opening the eastern end of the line between Bedford and Cambridge, and from there linking into the existing rail network serving Cambridgeshire, Norfolk and Suffolk.

[Mr Andrew Smith (Oxford East) (Lab)]

I congratulate the hon. Gentleman on securing this important debate and on his establishment of the all-party group. As he has mentioned the other place, I want to get in early and mention Oxford and how strong the support is for this initiative across political parties, both in Oxford and in the wider Oxfordshire county. The cost-benefit ratio is, of course, particularly good.

[Iain Stewart]

There is indeed widespread support along the line of the route and across parties. I was about to mention that this is not a new campaign. A former constituent of mine, a Mr Chris Wright, e-mailed me at the weekend to say that this year marks the silver anniversary of his involvement in the campaign to reopen the line.

By way of background, the line was built in phases between 1846 and 1862. The first attempt to close the line was made in 1959, but a local campaign opposed the closure. It did not even feature in the Beeching plans in the 1960s. It was only when fast trains were introduced between London and Cambridge and London and Oxford in the ’60s that patronage fell away to such an extent that it was quicker for people to travel into London and back out again rather than make the cross-country journey. British Rail withdrew passenger services, except of course for the section between Bletchley and Bedford, which remains in operation today. Even though passenger services were withdrawn, the line remained in operation for many years and was used for a variety of purposes, including freight services and for diversionary passenger services when the main line was undergoing engineering work.

In 1993, the section between Bletchley and Calvert Junction was mothballed, although much of the track bed remains and, thankfully, none of the line has been built on. Much of the route is already back in use. In 1987, British Rail reopened the Oxford to Bicester Town section. The Chiltern Railways Evergreen 3 project, subject to the Secretary of State’s decision on the recent public inquiry, plans to upgrade the line and build a new chord, which would see fast passenger trains from London to Oxford via Bicester and High Wycombe.

Chiltern Railways services have also been extended north of Aylesbury to the new Aylesbury Vale Parkway station, which has been built to service new housing development in the north of that town. The section between Aylesbury and Bicester remains open for freight purposes, so the line needs to be upgraded only for passenger services. My right hon. Friend the Member for Aylesbury (Mr Lidington) is a strong champion of the restoration of this passenger service.

[John Howell (Henley) (Con)]

The historical perspective is useful and my hon. Friend is setting it out clearly. There is enormous support for this project including from, for example, Oxfordshire county council. A wide spectrum of organisations now supports it, and it will bring enormous benefits for people in my constituency who are within striking distance of Islip station.

[Iain Stewart]

I am grateful to my hon. Friend who illustrates the widespread support for this project. It cuts across both the public and private sector. I will come on to some of the benefits that I believe restoring this link will provide.

[Ian Paisley (North Antrim) (DUP)]

The hon. Gentleman has outlined a history of the railway being in and out of fashion, and then back in again because demand renews as population shifts. That is very telling, because it seems to be the history of our rail system. Indeed, it is similar to what has happened in Northern Ireland. Does he believe that one of the benefits of rail is to stimulate the local economy and that that is the best way to get the economic growth that we so desire?

[Iain Stewart]

I am relieved that the hon. Gentleman is not calling for the line to be extended via a new tunnel under the Irish sea to Ballymena, which might be a little too ambitious. Nevertheless, he has made an important point. The country made a strategic mistake by closing so many railway lines in the ’60s, which we are now painfully and expensively trying to rectify. I will come on to the economic benefits that he has mentioned.

[George Freeman (Mid Norfolk) (Con)]

I congratulate my hon. Friend on raising this topic. On the role of rail in promoting economic growth, I want to put a word in for extending the innovation corridor across East Anglia to Norwich. I speak partly on behalf of the Economic Secretary, who cannot be here today. If we look at the story of the Cambridge phenomenon, one of the single biggest contributors was investment in the Norwich-Cambridge railway line and the non-stop connection. If we want to rebalance the economy, we should consider the eastern region’s strengths in cleantech, biotech and life sciences. Extending the Oxford-Cambridge-Norwich corridor would play a key part in unlocking our global potential.

[Iain Stewart]

My hon. Friend makes an excellent point. I see this line as creating an arc of technology and new industry, which would be hugely beneficial to the economy. As I have said, I will come on to that in a moment.

There is another piece of the jigsaw. In 2008, Milton Keynes Central station was remodelled to enable it to incorporate east-west trains. This project is not about a new railway line; it is about reinstating, upgrading and integrating sections of railway line that already exist. As I shall come on to in a moment, that can be done for a comparatively small capital investment, and the project enjoys a benefit-cost ratio of more than 6:1.

Turning to the benefits, the east-west rail link is good for business and economic growth, good for the environment and good for the nation’s wider strategic transport aspirations. At a time when everyone is shouting for more growth in the economy, this project would provide a rail link to an economic corridor that is at the cutting edge of the UK’s economy. It would, for example, link Reading at the heart of the Thames valley, Science Vale UK with its world-leading research and development facilities, Oxford with its academic and tourism economy, Eco Bicester, which is one of the four eco-towns in the country, and my home area of Milton Keynes, which is a fast-growing new city with a dynamic economy. As my hon. Friend the Member for Mid Norfolk (George Freeman) has just pointed out, it would link with Cambridge, East Anglia and all the important economic sectors.

[Peter Aldous (Waveney) (Con)]

Does my hon. Friend agree that the proposal would play a valuable role in getting freight from the east coast ports across the country without needing to go into London? It would also provide another way for passengers to travel without using the over-congested Great Eastern line from Norwich to Liverpool street.

[Iain Stewart]

My hon. Friend makes an important point. My comments are primarily about passenger services, but the freight side is equally valuable in putting together the strategic network for the country.

This area’s economic strengths lie in key growth sectors for the future, such as high-value-added, science-based research and development, precision engineering and, especially, automotive engineering—Red Bull Formula 1 is located in my constituency and won this year’s constructors’ championship—pharmaceutical and life science research and development, green technology and low-carbon services and products. All those things are attractive to inward investment, and I believe that a fast, reliable public transport corridor that links them together and to the rest of the United Kingdom, as well as to the population centres from which they will draw their work force, will help to generate up to 12,000 new jobs.

[Ben Gummer (Ipswich) (Con)]

I congratulate my hon. Friend on bringing this important matter before the House and the Minister. The largest software development centre in Europe is just outside Ipswich, and it would be a great help to link that to other centres of excellence at Cambridge and Oxford. The line between Felixstowe, Ipswich and Cambridge has already been built, and it will be improved thanks to this Government’s investment.

[Iain Stewart]

I am grateful for that intervention, which again illustrates the arc of economic growth that runs from east to west. The western section of the line will be instrumental in opening up the second phase of development eastwards.

[Richard Fuller (Bedford) (Con)]

I, too, congratulate my hon. Friend on securing the debate; the Minister must be impressed to see a rail project that has such widespread, extensive and popular support, let alone with the economic benefits that have been outlined. Does my hon. Friend believe that such a project would also help with areas of economic deprivation? My constituency has seen levels of unemployment that are above the national average. Too often such issues are thought to affect other parts of the country and are sometimes overlooked in the eastern area.

[Iain Stewart]

My hon. Friend makes a valuable point. The south-east is assumed to be uniformly wealthy, but that is not the case. My constituency also contains pockets of deprivation, and this project will stimulate overall economic activity and benefit all areas.

A key benefit of this project would be a reduction in journey times, leading to a modal shift in our methods of transportation. The proposed rail link would result in a significant reduction in journey times from east to west. Road transport is a nightmare along that corridor, particularly in the key middle section of the line. I often have to drive west from Milton Keynes along the A421 trunk road between Bletchley and Buckingham and the A4421 from Buckingham to Bicester. Both roads are single carriageways, and they are so congested that it is difficult to predict journey times with any accuracy.

The time savings will be transformational. For example, a car journey between Milton Keynes and Oxford, which can take up to an hour and a half, would be replaced by a 40-minute train journey. The journey from Oxford to Bedford would reduce from over two hours by car to one hour by train. The east-west rail line would also open up a new direct rail link from Milton Keynes to Aylesbury and the rest of the Chiltern Railways network to and from London Marylebone. It would help to achieve a modal shift from car to rail, with all the environmental benefits that that entails.

Hon. Friends have raised the issue of wider connectivity and freight, and the east-west rail line would provide much better links with the UK national rail network. It would join up the Great Western line, the west coast main line and the midland main line, which in time would be followed by the east coast main line and the network in East Anglia.

The potential for wider rail services—passenger and freight—to use that corridor is significant, both for scheduling new longer distance services in the future, and for providing a north-south relief route should engineering work be planned on one of the main lines. Such a link would be a valuable piece of the UK’s strategic railway jigsaw, and indirectly it would also relieve some of the pressure on London, which is a point raised by my hon. Friend the Member for Waveney (Peter Aldous). Many people find it easier and quicker to travel into London and go back out, rather than travel across country.

I hesitate to raise this issue, given its controversial nature in the rest of Buckinghamshire, but the east-west rail link would intersect with the proposed route of High Speed 2—the Minister and her colleagues will be glad to hear that I do not intend to enter into the pros and cons of HS2, because there will be plenty of time for that in the weeks and months ahead. Nevertheless, such an intersection would open up the possibility of a parkway station. If HS2 proceeds along the planned route, I would like to see the business case for a parkway station properly assessed in the context of the Y-network, and connections to Heathrow and High Speed 1. More than 500,000 people would live within 30 or 40 minutes’ rail journey from a parkway station, which might significantly augment the business case for HS2. It would also go some way to answering the justifiable objections of people in Buckinghamshire who claim that they will endure the pain of HS2 but receive no gain. That, however, is a side issue, and the case for the east-west rail link stands independently from that for HS2.

All in all, the east-west rail project could generate an additional 2.5 million rail trips annually, and result in nearly 1.5 million fewer car journeys. It has the potential for an annual uplift in regional gross domestic product of £38.1 million and could generate additional annual tax revenues of £17.1 million. All those benefits could be secured for a relatively modest capital investment of £250 million, which, when put in the context of the £33 billion needed for HS2, seems a comparatively small sum. If 100% publicly funded, the project has a benefit-cost ratio of 6.3:l, and the ratio is 11.2:1 if there is a private sector contribution. Again, that compares favourably with the benefit-cost ratio for HS2 of about 2.6:1.

Much work is being undertaken by the consortium to realise private sector investment in the east-west rail project. After five and a half years, a positive income stream would be generated through the fare box and no ongoing public subsidy would be required. Last July, Oxford Economics was commissioned by the consortium to provide an independent assessment and review of the east-west rail link, and it concluded that there is a strong business case for the project to go ahead.

Through local enterprise partnerships, the consortium is developing a funding package to enable the delivery of the scheme via both the public and the private sectors. One key source of funding will be the HLOS for CP5, which is unique in that it is being promoted by a non-rail-industry entity. Consequently, it has not yet appeared in the initial industry plan for CP5, but nobody should take that as a sign that it is not a viable project. I believe that the east-west rail project is a no-brainer and that with a fair wind trains could be running by 2017. If the Government are looking to fast-track infrastructure projects that will deliver growth and jobs, may I gently suggest that the east-west rail project could easily be brought forward and that trains could be running by the end of this Parliament?

I conclude by paying tribute to Patrick O’Sullivan, the consortium’s project manager from Jacobs Engineering UK, and all those involved with the East West Rail Consortium, together with those who have campaigned to restore the rail link for many years. I am extremely grateful to have had this opportunity to present the case for the east-west rail link, and I hope that I have persuaded my right hon. Friend the Minister of its merits.

Aviation Industry

Iain Stewart Excerpts

Tuesday 15th November 2011 Westminster Hall

[Mr Donohoe]

Sorry; I will always get that wrong. I see the hon. Member for Blackpool North and Cleveleys (Paul Maynard) in his place this afternoon. He has taken the lead on the case regarding High Speed 2, which is part of the overall package that we have to consider today.

More than any other industry, aviation operates in a global marketplace and needs global solutions to avoid market distortions that would prejudice against UK industry. In that respect, it would be dangerous for the UK to add or continue with unilateral actions that would serve only further to drive UK industries abroad, along with the financial and skills benefits they are associated with.

About 15,000 jobs a year are at stake unless the UK finds way to increase aviation capacity in the south-east. The management at Gatwick airport has argued in a submission to the Department for Transport that that is of great importance to its airport, as well as to the whole country. The UK stands to lose between £20 billion and £47 billion of benefits over 30 to 50 years unless the Government reconsider the current stance of no expansion.

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

I congratulate the hon. Gentleman and his family on the safe arrival of Rosie. He mentions airport capacity in the south-east. With the advent of a high-speed rail network, which he also mentioned, what is termed the south-east could be expanded to include airports such as Birmingham, which has considerable spare capacity. Should we not look at the whole of the southern part of the United Kingdom, rather than just what is narrowly defined as the south-east?

[Mr Donohoe]

I will return to that point, because I have included in my speech the effect of that and the question of the whole package.

Cost of Motor Insurance

Iain Stewart Excerpts

Tuesday 8th November 2011 Commons Chamber

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

As a member of the Transport Committee, I am pleased to have an opportunity to take part in the debate. I pay tribute to the hon. Member for Liverpool, Riverside (Mrs Ellman) for introducing the Committee’s report so ably and comprehensively. I do not intend to speak for long, but having spent a considerable time examining the issues, there are a few points that I would like to place on the record.

Two weeks ago two events happened to me that crystallised in my mind the facts that we are debating tonight. First, I received in the post my motor insurance renewal notice from my insurance company. I can assure the House that it was not a happy moment in the Stewart household, because my premium had shot up by the order of 25%. I shopped around a little and got a slightly better quote, but it was still a substantial increase on last year, despite my having had no accidents.

Secondly, no sooner had I signed up to the new policy than I got a text message suggesting that as I had had an accident in the past three years, perhaps I required assistance to claim compensation. As I said, I had had no such accident. It strikes me that those two experiences, which I am sure have been shared by thousands, if not millions, of people up and down the country, are not unlinked.

Although I accept that, as the Select Committee’s report sets out, there is a range of reasons why insurance premiums have gone up considerably in recent years, from the evidence that I saw as part of our inquiry, together with private discussions that I have had with some insurance companies, I am convinced that it is referral fees for personal injury claims and the activities of some claims management companies that have been a significant contributor to the growth of those premiums.

I do not doubt that there may be perfectly respectable claims management companies, but I am of the view that the current arrangements whereby lawyers and others can pay and receive fees for referring personal injury claims has created an industry that pursues claimants for profit. Although I do not want to see anyone who has a genuine claim denied proper compensation, far too often those proper boundaries are breached and there is a financial incentive throughout the system to exacerbate claims or make fraudulent ones.

It has been difficult to obtain exact figures, but there is certainly an average sum of several hundred pounds in each claim which sloshes around the system in ways that are very opaque. The cost, of course, is picked up by the policyholder. This creates a double problem. For the honest motorist, that pushes up premiums at a time when many households are struggling to meet the cost of living.

[Dr Sarah Wollaston (Totnes) (Con)]

Further to the unfortunate shock that happened in the Stewart household, may I tell the House about the unfortunate shock in my household when I received a notice saying that I did not need to take any further action to continue my insurance with Tesco, but the small print indicated that the premium had gone up from £900 to £5,700 as I am the parent of a 17-year-old boy? It is a further sharp practice that the small print is not there, and it would have been very easy to miss the fact that I could have spent nearly two months’ salary on insuring my 17-year-old boy. I think everybody in the House would agree that it would be entirely unreasonable and very difficult for anyone living in a very rural area, as I do, for my son not to be able to drive.

[Iain Stewart]

My hon. Friend makes a powerful point. The shock in my household cannot even begin to compare with that in Totnes. She raises an extremely important point. Many of us will pay our motor insurance premiums by a monthly direct debit, and among all the paperwork that we receive it is very easy to say, “Yes, we’ll continue with that policy,” and then suddenly the premiums that we are paying shoot up. I echo her call for much more transparency and explanation on the renewal documents about what the new cost will be.

The first problem I identified is that the premiums go up, placing a strain on households that have tight incomes, but another problem is that premiums are pushed up to such a level that other, less honest motorists seek in some way to evade paying their insurance, and other Members have alluded to that. They will either not have insurance at all, or they will in some way make fraudulent claims on their insurance policies to try to minimise payments. That creates a vicious cycle; the more people evade payment or misclaim on their policies, the higher the costs that honest motorists have to bear.

The destination of those fees and the routes by which they travel are far from clear, but I have been surprised to learn of some of the organisations that potentially gain a sizeable income from referral fees. For example, it has been suggested to me that trade unions receive significant income, either directly or through benefits in kind, from referral fees. I have been unable to quantify that, but Lord Justice Jackson states in his review of the cost of civil litigation:

“Trade unions refer the personal injury claims of their members to solicitors on union panels…For example, one union informs me that it receives a referral fee of £200 for every case which proves to be “worthy of investigation”. Other trade unions do not charge referral fees as such, but instead receive certain free legal services from solicitors for their members.”

I am in no way suggesting that that is wrong, but it illustrates the opaqueness of the system and the fact that money can be distributed in ways that people might not first realise. For that reason, I am glad that the Government have taken action to ban referral fees through the amendments made last week to the Legal Aid, Sentencing and Punishment of Offenders Bill.

I would be grateful if the Minister could clarify one point on that—I appreciate that it was not his Bill and that he might wish to speak with the Under-Secretary of State for Justice, my hon. Friend the Member for Huntingdon (Mr Djanogly) about it. The new clause added to the Bill last week defined payment for referral fees as “any form of consideration”. I presume that that will include the offset models to which I have referred, where legal services are traded rather than cash, but I would be grateful for clarification.

I strongly believe that the ban on referral fees will help to strip out some of the unnecessary costs in motor insurance. There is a balance to be struck between providing fair access to justice and having a system that is wide open to abuse in a “something for nothing” culture. I believe that the pendulum has swung too far in the latter direction and I am glad that the Government have taken action on referral fees. However, as the Transport Committee’s report recommends, there are many other causes behind the rising cost of premiums and they often cut across Government Departments.

In conclusion, I urge the Government to take on board the motion’s final recommendation, which is also set out in the Committee’s report. A cross-departmental ministerial committee should be set up to consider further ways of reducing the cost of motor insurance.

M5 Motorway Accident

Iain Stewart Excerpts

Monday 7th November 2011 Commons Chamber

[Justine Greening]

My hon. Friend, as a former Minister with responsibility for roads, always has an important point to make. I am aware of the arguments about daylight saving time—there are arguments on both sides—but obviously we have to be conscious of how any change would affect not just the south of our country but the north. I have no doubt that we will continue to have that debate over the coming months.

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

I very much agree with my right hon. Friend’s comments about considering road safety measures more generally and not just speed limits, but may I urge her, as part of her review, to consider the system in France, where they have two levels of mandatory speed limit on motorways—an 80 mph limit for fair-weather driving and a considerably lower limit for adverse conditions?

[Justine Greening]

I have considered that. In fact, I was in discussion with the AA over the weekend to hear its views on HGVs and the speed limit. It has supported variable limits. However, it made another point too. Organisations such as the AA think that drivers can take decisions for themselves about the right speed to drive at, and that is something that we should be trying to build upon. It is important that drivers take responsibility for driving in a way appropriate for the road conditions.

High-Speed Rail

Iain Stewart Excerpts

Wednesday 2nd November 2011 Westminster Hall

[The Minister of State, Department for Transport (Mrs Theresa Villiers)]

Thank you, Ms Dorries. It is a pleasure to serve under your chairmanship. I congratulate my hon. Friend the Member for Blackpool North and Cleveleys (Paul Maynard) on securing this debate. I am sorry for my coughing fit during his speech; I was moved to tears not by emotion but by the flu. We have had a good debate—well informed, constructive in tone and cross-party—and I thank all hon. Members for their contributions.

On the points raised, the opponents of High Speed 2, who are thin on the ground today, claim that better, faster transport between north and south will pull economic activity into London and suck it out of regional cities. That is defeatist and thoroughly misguided. As my hon. Friend the Member for Warrington South (David Mowat) pointed out in his usual incisive and informed manner, isolation is not the way to ensure that our northern cities thrive. I have every confidence that bringing north and south closer together by shrinking journey times will provide a major boost to growth in the north. That confidence is based on the evidence from our European neighbours, which has been discussed in some detail.

It is not only places served directly by HS2 that will benefit from the project; so will many other towns and cities as trains run off it on to the existing network. From Preston and Liverpool in the west to York and Newcastle in the east, journey times will be reduced and connectivity improved, and the economic boost will be felt across the north of England.

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

This debate has rightly focused on passenger traffic, but does my right hon. Friend agree that a spin-off benefit is that High Speed 2 will release capacity in the classic network for freight transport by rail, boosting all parts of the United Kingdom?

High Speed 2

Iain Stewart Excerpts

Thursday 13th October 2011 Commons Chamber

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

I understand that I must sit down promptly at 5:40 pm, so this will be a super-fast contribution. I should make it clear that, although I serve on the Transport Committee, the comments I am about to make are entirely my own, as the Committee is yet to conclude its inquiry and produce its report.

I have looked at a huge amount of evidence on high-speed rail, from the UK and overseas. My conclusion is that I am in favour of high-speed rail but not yet convinced of the specifics of High Speed 2. I agree that there is a case for a new strategic north-south railway line in this country. As other Members have mentioned, the capacity on the west coast main line and other strategic routes will run out at some point, even with upgrades. It is a false choice between upgrading those lines, which we need to do anyway to address the immediate capacity problems, and building a new high-speed line. Both are required. I do not think that we can defer a decision for another 10 years, because we will be having exactly the same debate then and enduring severe overcrowding for passengers and freight.

I would argue against just upgrading the existing line, which could be done effectively only at the exclusion of those intermediate stops on the line for commuter services to places such as Milton Keynes. Both are necessary; we cannot just look at upgrading.

I am not going to get through anything like what I wanted to say, but there are a number of areas where High Speed 2 has not been looked at in the round. At the weekend, we saw the proposal for a new “Heathwick” high-speed line to connect Heathrow and Gatwick, but that has not been appraised in the overall—[Interruption.] My Whip tells me that I must sit down now, so I shall conclude my remarks.

[Mr Speaker]

I remind the Front Benchers that a very brief winding-up speech from the hon. Member for South Northamptonshire (Andrea Leadsom) would be a courtesy and is customary on these occasions.