Oral Answers to Questions

Debate between Lord Johnson of Marylebone and Kelvin Hopkins

Thursday 11th October 2018 Commons Chamber

[Kelvin Hopkins (Luton North) (Ind)]

4. What recent assessment he has made of trends in the cost of railway infrastructure; and if he will make a statement.

[The Minister of State, Department for Transport (Joseph Johnson)]

Information on trends in infrastructure costs on the railways are published by the Office of Road and Rail in its UK rail industry financial report, which is found on its website. Spending by Network Rail was £7.3 billion in 2016-17, an increase of half a billion pounds, or 7% in real terms, on the previous year.

[Kelvin Hopkins]

Since rail privatisation, the costs of rail infrastructure works have gone through the roof, multiplying several times. The Minister may have seen a recently published analysis showing that electrification, for example, now costs seven times more in real terms—stripping out inflation—than when British Rail electrified the east coast main line. Is it not obvious that we should not only nationalise train operations, but rebuild publicly owned in-house works capacity and save billions for the public purse and for passengers?

[Joseph Johnson]

I remind the hon. Gentleman that Network Rail is responsible for most railway infrastructure work in this country and it is, of course, in the public sector. He rightly highlights the need for Government to ensure that they get the greatest possible efficiency and value for money from all our infrastructure investments. That is why we have set up a mechanism to benchmark costs across the industry in the most rigorous way possible so that we get full value for money from the record sums that we are investing in our railways— £48 billion over the next five-year period.

Oral Answers to Questions

Debate between Lord Johnson of Marylebone and Kelvin Hopkins

Thursday 19th April 2018 Commons Chamber

[The Minister of State, Department for Transport (Joseph Johnson)]

In September 2016, the Government published a rail freight strategy setting out a vision for how the freight industry can grow. During control period 5, the Department is investing £235 million to improve the capacity of the network. Further funding for investment in the network will be available in control period 6.

[Kelvin Hopkins]

I thank the Minister for his answer, but is the reality not that only a small proportion of freight in Britain is carried by rail, and that it has been declining? By contrast, a third of all freight in Germany is transported by rail, and in the US the figure is 50%. To achieve a substantial modal shift in freight from road to rail, is it not essential to introduce a much bigger programme—a major programme—of investment in rail freight capacity starting very soon?

[Joseph Johnson]

We share the hon. Gentleman’s ambition to support modal shift. The Government are always interested in hearing about ambitious schemes that would encourage that. As he will know, we recently launched a call for ideas for market-led proposals that will enhance the railway, and I encourage him to take part in that.

Industrial Strategy

Debate between Lord Johnson of Marylebone and Kelvin Hopkins

Thursday 20th October 2016 Commons Chamber

[Joseph Johnson]

Our export performance is one of the features of our economy that we are seeking to improve through our industrial strategy, and I am looking forward to explaining a bit more about how we will do that.

The UK has the second lowest productivity in the G7, a fifth below the G7 average, and closing just half that gap would add £250 billion to the economy by 2025. A proper industrial strategy can play a key role in that, by delivering real benefits to the work and lives of businesses, consumers and employees.

[Kelvin Hopkins]

I, too, am concerned about our low productivity. Does the Minister not accept that a factor in that is cheap labour? If wages are low, that does not encourage companies to invest and become more efficient. We have a history of driving down wages or keeping them too low.

[Joseph Johnson]

Wages by and large correspond to the value added per hour worked that a company is willing to pay for. What is important is that we increase the average skills level in our workforce, so that we have a skills base that is globally competitive and able to command the wages in a market economy that we want people to have.

When Governments fail to look ahead and make the right long-term decisions on fundamentals such as tax, infrastructure, research, education and skills, they are abdicating responsibility. Such plans require us to take not a partisan approach but one that seeks to establish common ground. I am delighted that so many Members from all parts of the House have participated in the debate today, and I thank them for doing so.

I want to say a bit more about the principles guiding our approach to industrial strategy. The first thing to say is that developing a proper strategy takes time. It is not something that we can drop out overnight. We need to engage with a wide range of organisations and people to design and deliver a strategy that can have a real and lasting impact. That means engaging with Members, including through the Business, Energy and Industrial Strategy Committee’s welcome inquiry on industrial strategy. It also means spending time over the coming months engaging with businesses of all sizes and sectors, investors, local leaders and consumers, so that we can reflect their views and build on their knowledge and experience.

Our industrial strategy will necessarily be wide ranging, but that should not be at the expense of clear focus, so I would like to say a few words about where we will be concentrating our efforts. First, building on proven strengths is a cornerstone of good strategy, and as many Members have observed, this country has no shortage of them. For a start, let us acknowledge our powerful record on science and innovation. Only America, with a population nearly five times our own, has more of the world’s top universities, Nobel prizes and registered patents. The UK has the most productive science base in the G7 and has overtaken the US to rank first among comparable major research nations for field-weighted citation impact, a key measure of research quality. This is hugely important. Science, research and innovation are essential to our future and must be at the core of any effective strategy for the long term.

--- Later in debate ---

[Joseph Johnson]

The hon. Gentleman might recall that there was a point during the last Parliament—I think, in 2013—when this country became a net exporter of cars for the first time since 1975, when the then Labour Government nationalised British Leyland. It is the automotive policies of this Government and our predecessor coalition Government that have taken the car industry to the heights that it currently enjoys and that have not been seen since the early 1970s.

[Kelvin Hopkins]

Like the Minister, I think that the British motor industry has a brilliant future—provided that our currency remains relatively competitive. Does he accept that we do well in export markets outside the EU but poorly inside in the EU because of the uncompetitive exchange rate? I think that we still import four times as many cars from Germany as we export to Germany. It is our trade outside that makes the difference.