Rail Manufacturing: Job Losses

Debate between Iain Stewart and Huw Merriman

Tuesday 16th April 2024 Commons Chamber

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

I am pleased that the Secretary of State and the Minister are taking charge of negotiations with Alstom, Hitachi and others. I appreciate that as commercially sensitive discussions are ongoing, the Minister is constrained in what he can say, but they need to be resolved soon. The wider issue is the peaks and troughs not just in rolling stock procurement, but in railway industry investment more generally. How does the Minister believe Great British Railways and wider rail reform will help to smooth out the peaks and troughs in the longer term?

[Huw Merriman]

I thank the Chair of the Select Committee for his work. The Committee as a whole has looked at this issue and really probed for solutions. On the GBR point, it is also providing the body of pre-legislative scrutiny of rail reform, and I thank my hon. Friend and his Committee for their work in that endeavour. He is absolutely right that a more holistic approach to the railway, in which track and train are integrated, will help us to make further decisions into the future and give more certainty with regard to orders. None the less, I have set out the orders that have been taken over the preceding years. The order book is healthy and we will look to get the tenders out this year and next for the train operators that I have mentioned.

Oral Answers to Questions

Debate between Iain Stewart and Huw Merriman

Thursday 21st March 2024 Commons Chamber

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

The recent Budget contains welcome additional funding for east-west rail. What are the Minister’s intentions for that additional funding? May I suggest that he work with the Bletchley towns fund board, of which I am a member, on using the money to provide an additional eastern entrance to Bletchley station, which will improve accessibility and enhance regeneration?

[Huw Merriman]

I am happy to work with the Chair of the Select Committee, and I thank him for the evidence session we had on east-west rail. It was also brilliant to go to the Winslow and Calvert area to see that final link put in place. The first phase of east-west rail is ready for opening next year. Winslow station is looking absolutely superb, and I am so excited to see rail services come back there. On the second phase from Bletchley to Bedford, as he rightly says, money has been allocated from the last Budget to deliver that. I am certainly happy to meet him and the Bletchley team to see what more they can do to enhance the station for both the first and second phases.

Refurbishing Trains: Contracts

Debate between Iain Stewart and Huw Merriman

Thursday 7th December 2023 Commons Chamber

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

I know that the Minister is a great advocate of the work of the Transport Committee, and I strongly urge him to look at the transcript of the evidence we received yesterday from not just Alstom but others in the rail industry. The fact is that the medium and long-term prospects for the sector are positive. What we are facing is a short-term lull. I impress on him the urgency of working with the rolling stock companies—ROSCOs—and others to try to bring forward some refurbishment contracts that Alstom and others can bid for to help smooth out these peaks and troughs in the sector.

[Huw Merriman]

I thank my hon. Friend, the Chair of the Select Committee, for the work he does—that evidence session was particularly pertinent for highlighting the matters he allows that Committee to raise. I can assure him that the Secretary of State wrote to rolling stock owners in September to encourage them to discuss with train operators and manufacturers opportunities to ease short-term challenges in the supply chain, such as refurbishments or major overhauls. We recognise the issue, and have asked others to do their best to deliver on that.

Rail Ticket Offices

Debate between Iain Stewart and Huw Merriman

Thursday 6th July 2023 Commons Chamber

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

The Transport Committee is conducting an inquiry into accessible transport. We have received alarming evidence that the quality and range of assistance to vulnerable passengers has declined markedly since the pandemic. If the redeployment of staff is to be meaningful, it is essential that the new roles and training are designed with the support of campaign groups for vulnerable people. Will my hon. Friend assure me that that will happen?

[Huw Merriman]

My hon. Friend makes an excellent point. The very first discussions I had with any groups about these changes were with those groups that represent passengers with accessibility and mobility issues on the railway. I told them that I am keen to work with them to help to ensure that these proposals are designed such that they work for each group with different characteristics. I will be looking to meet them again to ensure that that occurs.

At 9.30 am, the Office of Rail and Road issued its rail passenger assistance bookings update for the latest year, which shows that passenger assists increased by 68% compared with the previous year. That demonstrates that more help is needed at stations for people with accessibility needs. Again, by freeing people who are currently under-utilised in the ticket office and putting them on to the platforms to give help and guidance, we will help those who need it the most. That is at the forefront of everything that the train operators are looking to do with these proposals.

HS2: Revised Timetable and Budget

Debate between Iain Stewart and Huw Merriman

Tuesday 14th March 2023 Commons Chamber

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

(Urgent Question): To ask the Secretary of State for Transport if he will make a statement on the revised timetable and budget for completion of HS2.

[The Minister of State, Department for Transport (Huw Merriman)]

Although we notified the House first about Thursday’s announcement, I start by apologising for the timing of the written ministerial statement, which I accept was discourteous to Members and to you, Mr Speaker.

As part of the largest capital programme ever committed, the Transport Secretary last week confirmed more than £40 billion in transport investment over the next two financial years. This will enable the opening stage of HS2 to be delivered on schedule. By 2033, passengers and communities will benefit from high-speed rail services between new stations at Old Oak Common in London and Curzon Street in Birmingham, but the House will also be aware that we face significant economic headwinds. Record inflation caused by Putin’s illegal war and ongoing global supply chain issues have ramped up construction costs, making capital projects more difficult to deliver. It means we must make responsible decisions on which parts of our capital programme we can deliver within current budgets and timeframes.

While we remain committed fully to HS2, we will need to rephase the delivery options as part of the project due to inflationary pressures and the need to spread costs. Between Birmingham and Crewe, we expect to push back construction by two years, with an aim to deliver high-speed services as soon as possible after accounting for the delay in construction. We also remain committed to delivering HS2 services to Euston, but will take time to ensure an affordable and deliverable station design, which means delivering Euston alongside the high-speed infrastructure to Manchester. While HS2 Ltd and Network Rail continue work on developing HS2 east, we are also considering the most effective way to run HS2 trains to Leeds.

The Prime Minister promised to place trust and accountability at the heart of this Government. That means strengthening connectivity across the country while managing public finances effectively. It means never shirking the tough, but necessary decisions as we deliver on the people’s priorities to halve inflation, grow the economy and reduce debt.

[Iain Stewart]

I am grateful to you, Mr Speaker, for granting this urgent question. As Chair of the Select Committee, we feel that there was not enough detail on a number of areas in Thursday’s statement, so I would be grateful if my hon. Friend gave further detail.

First, my hon. Friend rightly references inflationary cost pressures in construction, which are affecting all sorts of projects up and down the country, but the written ministerial statement also referenced other “increased project costs”. What are they? Is he satisfied that HS2 Ltd has a grip on its finances? Secondly, the statement said that Old Oak Common to Birmingham will be finished “as soon as possible”. What does that mean? Is there a delay to the planned opening date?

Thirdly, what is the reason for the delay to the Euston to Old Oak Common section? Is it purely down to costs or are there other reasons for a redesign? A lot of construction work is happening at Euston now, so should the redesign not have been identified earlier? Finally, when can we expect to see further detail on HS2 east, the integrated rail plan and the Leeds route options? The industry and the public require—nay, demand—certainty on this. Can we be assured that this is the last delay to the project?

[Huw Merriman]

I thank my hon. Friend the Chair of the Transport Committee for his questions. I will provide some answers, but there will no doubt be further detail to discuss as we go through the session.

On my hon. Friend’s question about the increased project costs, they chiefly relate to the opening section of the line in phase 1, which is the part that is under construction at the moment. We are spending about £600 million a month on phase 1 construction, which is at its peak. He rightly talks about inflation; the Office for National Statistics shows that construction inflation is running at about 15%, which is why we have an issue with costs. He is right to say, however, that we need to bear down on costs. Yesterday, I met the chief executive of HS2 Ltd. I am delighted with the appointment of the chairman, Sir Jon Thompson, who has a background in finance. Certainly, it is within HS2’s requirements to ensure that, where we have inflationary pressures, it fills the gap by bearing down on costs.

My hon. Friend asked what finishing Old Oak Common to Curzon Street “as soon as possible” means. As I stated in my opening remarks, we expect that, by 2033, passengers and communities will benefit from high-speed rail services between those two stations. He asked about the reason for the Euston delay. Euston was always scheduled for delivery after the opening of phase 1, which is why we are prioritising Old Oak Common. We will not proceed with construction at Euston in the next two years, due to affordability and profiling issues, but we will use that time to work with partners to ensure an affordable and deliverable design.

My hon. Friend asks for detail on HS2 east, the integrated rail plan and the Leeds route study. I will be writing to him on the back of the integrated rail plan report this month and further information will be tabled in the six-monthly HS2 report, which is due in May. On the Leeds route strategy, it has been cleared by the Department and we expect it to be published soon.

My hon. Friend is right to say that the industry needs certainty, and I believe he asked whether we can be certain that this is the last change to the project. Although the pandemic and Putin’s illegal invasion of Russia were not anticipated, we expect these HS2 plans to be the plans that deliver it from London to Manchester.

Oral Answers to Questions

Debate between Iain Stewart and Huw Merriman

Thursday 19th January 2023 Commons Chamber

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

My hon. Friend the rail Minister will be aware that services on the Marston Vale line serving my constituency are currently suspended because Vivarail, which maintains the rolling stock, has gone into administration. The replacement bus service is far from ideal, which is causing significant difficulties for my constituents, especially young people going to school and college. Will my hon. Friend assure me that he is doing everything he can to ensure the earliest possible reinstatement of that rail service?

[Huw Merriman]

The Chair of the Select Committee has raised this point on a number of occasions, and he is right to do so. It is incredibly sad to see Vivarail, which is pursuing good, innovative technology, have to go into administration. I am keen to work with him to ensure that West Midlands Railway puts on a service as soon as possible. Together we will look into whether contractors can contract into West Midlands Railway and whether those contractors have the essential skills that are needed. I will work with him in partnership to ensure that his constituents have that service back up and running.