EU Transport Council

Justine Greening Excerpts

Thursday 14th June 2012 Written Statements

[The Secretary of State for Transport (Justine Greening)]

I attended the final Transport Council under the Danish presidency (the presidency) in Luxembourg on Thursday 7 June.

The Council reached a partial general approach on two multi-annual financial framework (MFF)-related regulations: a proposal for a regulation of the European Parliament and of the Council establishing the connecting Europe facility and a proposal for a regulation of the European Parliament and of the Council on the implementation and exploitation of the European satellite navigation systems.

I made statements on both regulations saying that while we supported what had been negotiated so far in the text, we could not formally support the draft regulations ahead of the agreement on the overall MFF negotiations as this might prejudge the overall MFF budget.

On the proposal for a regulation establishing the connecting Europe facility, I supported an Irish proposal that would allow co-funding for road schemes where there were isolated (rail) networks as defined in the TEN-T regulation. I also stressed that our participation in the core corridors was subject to the provisions of Art 172 of the treaty that require member state approval and would be kept under review until we saw the final requirements in the TEN-T regulation before finalising our position.

The Council reached a general approach on a proposal for a regulation of the European Parliament and of the Council on the establishment of rules and procedures with regard to the introduction of noise-related operating restrictions at European Union airports within a balanced approach and repealing directive 2002/30/EC. I was able to welcome the general approach text, which would reassure the public that at the local and EU level we were taking noise management seriously.

The presidency provided progress reports on two proposals to bring EU law in line with provisions of the 2006 (ILO) maritime labour convention, noting some of the outstanding issues following official level discussions.

A policy debate was held on the blue belt pilot project which had been initiated under the Belgian presidency to look at reducing administrative barriers to sea trade, especially in the area of customs formalities. The presidency concluded that there was support for the Commission taking initiatives to follow up the project, including legislation, though there would need to be analysis first to ensure benefits would justify costs. I noted that there would need to be much greater clarity on benefits before any consideration was given to setting the project in a legislative context.

Under any other business, the Commission provided an update on the inclusion of aviation in the emissions trading system (ETS): compliance with the 31 March emissions reporting deadline had been high, although Chinese and Indian airlines had refused to comply with the ETS following a direction from their respective administrations. The US Senate held a hearing on the ETS prohibition Bill on 6 June—DG Clima testified at the hearing. Discussions at the International Civil Aviation Organization (ICAO) continued, the next significant meeting would be at the end of June, when the ICAO Council would discuss market based measures. I stressed the need to continue to maintain a united EU position to opposition. I highlighted that what we want is a global deal, with a target and specific measures.

Also under other business, the Commission reported on delays in the introduction of the European electronic tolling service (EETS) which should allow drivers to pay road tolls in any country with a single on-board unit and account. Finally, the Commission reported on the recent conference on piracy and maritime transport.

I also met with my French, Dutch and Italian counterparts to discuss EU and bilateral issues in the margins of the Council.

Infrastructure (Roads)

Justine Greening Excerpts

Thursday 24th May 2012 Written Statements

[The Secretary of State for Transport (Justine Greening)]

As part of the spending review settlement in October 2010, the then Secretary of State agreed to commission an independent review to examine whether Government have the right approach to operating, maintaining and enhancing the strategic road network. Alan Cook, the non-executive chairman of the Highways Agency, led this review and his report “A Fresh Start for the Strategic Road Network” was published in November 2011. I am very grateful to Alan for his work on the study, and to the many stakeholders who offered advice and supported this process.

Today I am publishing my response to this review. I am also publishing the terms of reference for the study which the Prime Minister has asked my Department and HM Treasury to carry out, into the feasibility of new ownership and financing models for the strategic road network. This will build on the evidence provided in Alan Cook’s report on the efficiency savings which have been made in the regulated utilities, and will test whether similar savings can be made through a different structure for managing the road network. The study will develop options for bringing more private sector involvement into the strategic road network, generating increased investment and driving further efficiencies in the network.

Nevertheless, we do not need to wait for the conclusions of the feasibility study before making progress on a specific set of reforms as recommended by Alan Cook, which are both worth while in their own right and essential precursors to any future structural reform.

My announcement today constitutes the first stage in an ambitious integrated programme for reforming the road network to ensure that ultimately we deliver a more effective and efficient strategic road network, which enhances the experience of motorists and puts the road users and communities which rely on this network at its very heart.

I have carefully considered Alan’s recommendations and solutions and my response sets out how the Government intend to take these forward in parallel with the feasibility study. I am accepting, in detail or in principle, many of the actions which Alan recommends that I or the board of the Highways Agency should take. At this stage, the area where I am not progressing Alan’s recommendation is on the question of changing the status of the agency within the public sector. I do not propose to make decisions on the agency’s status ahead of the feasibility study concluding and the Government taking decisions on the future reform of the roads network.

In my response to Alan’s report, I set out a programme of work to transform the agency into a best-in-class executive agency by:

Delivering a long-term strategy and setting an outcome performance specification for the strategic road network, providing far greater clarity about what Government wants, as well as a basis for consistent and transparent challenge to the Highways Agency to deliver against this specification.

Championing the road user. I am determined to ensure that the voice of the user is listened to and championed. I will be bringing a stronger “consumer focus” to the concerns of users and to respond to those through the setting of the performance specification.

A much smarter approach to planning through the production of route-based strategies. These documents will set out investment plans to inform our decisions for the next spending review and will support much greater participation in planning for the network from local and regional stakeholders.

Work towards smarter financial relationships with Government. We are not accepting in full Alan’s recommendation about funding certainty and ending annuality, but we do propose to work closely with the Highways Agency and HM Treasury to consider the evidence for embedding greater certainty and flexibility into the funding regime of the strategic road network. This will help to inform any future decisions we may make on changes to the funding regime in any operating or ownership model for the network.

In advance of the conclusions of the feasibility study on ownership models, this immediate programme of work will deliver real progress towards a better performing strategic road network, with a clear strategic purpose, transparent expectations on performance, locally grounded investments plans, and a real consumer-focused culture.

My response and the feasibility terms of reference can be found on the Department for Transport website: www.dft.gov.uk and electronic copies have been lodged with the House Library.

Airport Charges Price Controls

Justine Greening Excerpts

Wednesday 16th May 2012 Written Statements

[The Secretary of State for Transport (Justine Greening)]

Today, I am issuing directions under section 40(9) of the Airports Act 1986 to the Civil Aviation Authority (CAA) not to make references to the Competition Commission (CC) in respect of mandatory airport charges conditions for Heathrow, Gatwick and Stansted airports. These references would have been made in the context of the economic regulation of these airports under the 1986 Act before the expiry of their current price controls on 31 March 2014.

The Civil Aviation Bill is proposing to remove the Competition Commission reference from the price review process permanently and replace it with a licensing and appeals regime. This will enable proportionate and accountable regulation, and will give airlines and airports a new right of appeal which the aviation sector has not had before—modernising the airport regulatory framework and putting in place a more flexible and responsive regime for the future.

The Civil Aviation Bill has already made significant progress through Parliament, having successfully concluded Report stage in the House of Commons, and will shortly continue its passage through the House of Lords.

In light of this, it would be unrealistic to ignore that a new regime is on the near horizon which will form the basis for the next regulatory settlement due to come into effect on 1 April 2014. Progressing with the mandatory reference under the existing legislation is likely to introduce unnecessary costs and uncertainty into the process for the CAA, the Competition Commission, and the aviation sector, in a manner that would undermine the Government’s objective of reducing unnecessary regulation. I have therefore decided to remove the mandatory Competition Commission references for price controls at these airports now.

The directions that I am issuing follow an informal consultation between 19 January and 29 February 2012 with industry and careful consideration of their responses. I am also publishing today my letter to industry setting out my response to the issues raised in that consultation and my letter to the CAA.

Cost of Living

Justine Greening Excerpts

Wednesday 16th May 2012 Commons Chamber

[Mr Leigh]

We all accept that the Government can usefully spend on assets. I do not deny that. There is nothing wrong with Government spending, but there is something wrong with wasteful Government spending. In a recent global competitiveness report, Britain was ranked an unbelievable 72nd in the world behind Ethiopia and Tajikistan on the wastefulness of Government spending. That simply is not good enough. If a private company was ranked so low in the pecking order, questions would be asked about the people serving on the board, would they not? We have to try harder and do better. Government money does not come from nowhere. Every pound wasted by Whitehall is a pound that could have been invested by a British company or spent by a British family.

Before I conclude, let me speak about a few other issues, including aspects of the Queen’s Speech which I welcome. The right hon. Member for Croydon North talked about family life. One reason I have supported a marriage tax allowance, which sadly was once again not in the Queen’s Speech, is that it would address precisely the point he was making—the tax disincentive for a parent, usually a woman, to stay at home to look after her children. Nobody pretends that a tax gets people married or keeps people married. It simply deals with the totally unjust situation that a married person, normally a woman, who stays at home and looks after her young children is uniquely attacked by the tax and benefit system. That cannot be right.

I am glad that the high-speed rail line was not in the Queen’s Speech. I will do a deal with my right hon. Friend the Transport Secretary, who will sum up the debate. I will support her high-speed line, which will admittedly cut the journey time between London and Birmingham—no doubt that is all very good and means spending the assets that the hon. Member for Na h-Eileanan an Iar (Mr MacNeil) spoke about—if she will support the building of a third runway at Heathrow airport.

[The Secretary of State for Transport (Justine Greening)]

indicated dissent.

[Mr Leigh]

She shakes her head, sadly, but one never knows: we might win this argument in the end. This is about ensuring that the UK is globally competitive. I have talked a lot about waste in Government spending and about spending less. We have to be globally competitive, and Heathrow has to remain globally competitive. The City of London and Heathrow are the two things that have really propelled the British economy forward over the past 15 years. The situation seems madness to me. If Heathrow is prepared to expand with virtually no cost to the Government, we should do it. I know there is a long way to go on that argument, but we will keep trying. By all means, if people want to build a new high-speed line between Gatwick and Heathrow, I am all in favour of that, but I want to create the biggest and best international airport in the world, because I want Britain to be a successful transport hub. I cannot believe that on, frankly, spurious green grounds—I do not think the argument has been particularly well made—we are denying ourselves the opportunity of creating the best airport transport hub in the world.

If I may change the subject before I conclude, I am sorry that we are not going further on education. The Secretary of State for Education gave a marvellous speech last week. He rightly bemoaned an issue about which there is very little conversation in the House. Why is it that half the places in our best universities are taken by private school pupils, despite the fact that only 5% or 10% of people go to private school? That is scandalous. What is the left doing about it? Why do we have a situation in which people are able to afford such an extraordinary advantage for their children by sending them to a private school?

I believe we should go further with the education reforms. We have created academies, which are a great success, and the Secretary of State for Education is one of the most successful members of the Government, but as well as creating academies we could learn from the success of the independent sector and create independent academies. I am not saying that the existing academies that perform well should be allowed to become independent, but what if the bottom half—those that are not performing very well—were allowed to become independent academies? What about free schools not being allowed to charge but in all other respects having the total freedom of independent schools? Let us set them up in the poorest areas and see if we can remove what is almost an appalling bias which prevents people from rising up from the ghetto and our poorest areas. Let us try to be innovative in education.

I was talking to a Labour councillor last week. Funnily enough he was from the Speaker’s constituency; I was amazed that there were any Labour councillors left in the Speaker’s constituency, but apparently there are. That councillor, who is a very good man, not a market-driven, Thatcherite, right-winger like myself, said, “This situation can’t carry on; perhaps we should actually pay some of our poorest people to go to private school.” As a way round, we could say that any child who has never been to a private school—so there would be no deadweight cost—or any pupil coming from one of the 100 poorest postcodes should be subsidised by the state to go to private school. Why should we not at least try that? Why should we, whether we are on the right or the left, be prepared to accept the great elephant in the room: that a smaller proportion of people on free school meals across the entire country get into Oxford or Cambridge than those from schools attended by the leader of the Conservative party and the deputy leader of the Labour party? Why do those two private schools send more people every year to Oxford and Cambridge than come from the entire stock of pupils in the country on free school meals? Why are we not prepared to be radical and try to think of new solutions to help those at the bottom of the heap to rise to the top and get the same opportunities enjoyed by people going to private schools?

Those are the kind of radical ideas that the coalition could propel. We have a coalition and we have to live with that. There is no point bemoaning its existence, because we did not get enough votes to get a purely Conservative Government. There are many areas where our two parties can work together. One of the best things the Liberal party has done in recent years is to make the economic the ideological case for taking people out of tax. That is the best way to help the low-paid—ordinary people—and it is one of the very best things the Government are doing.

We heard an excellent speech from the Secretary of State. He talked about freeing up the electricity sector. That is something we can work on with our Liberal friends—radical ideas to free up the economy.

This morning, there was a press conference about reforming the Public Order Act 1986 and getting rid of section 5, which outlaws insulting language. Again, Liberals, Labour people and Conservatives can unite. Section 5 has a chilling effect on debate out there. We want more vigorous debate not just out there, but in here. We want fresh and radical ideas to try to free people from the overwhelming incubus of wasteful Government spending and regulation that holds down families and small businesses. I firmly believe that this Government—a coalition of Conservatives and Liberals—is moving in that direction.

--- Later in debate ---

[Albert Owen]

I understand what has come from the Government Whips—I have seen copies of it, and it says that all the time; indeed, it has probably got into the psyche. However, let us look at proper economics. When we have low interest rates—and we have had historically low interest rates—it is during a recession. That is what happens; it is a natural phenomenon. Since January 2009, interest rates have been at an historic low. That did not start when this Government came in; it started in January 2009. Gilts and bonds are low as well, which gives us a golden opportunity to borrow at lower rates. That is how we got out of recessions in the past across the world. Pure austerity measures have never worked. People should look at economic history. Austerity is part of the package, but unless we get growth and jobs, we will not get out of the double-dip recession we are in.

We sometimes get accused of being deficit deniers. I am neither a deficit denier nor a deficit extremist. It is extremism that gets us into trouble, and I have to say that there are many people in this House who are recession deniers—they are denying the fact that we are going down. Many people are paying the price, and that is why the cost of living is so important.

Let me move on to energy and electricity market reform. I support reform in principle, although we do not know the details, so it would be a little naive to support it fully until it is implemented. I am a member of the Select Committee on Energy and Climate Change, and we have looked at the principle of electricity market reform. We produced a report highlighting some of our concerns. There has been a White Paper for a long time, but we are only going to get pre-legislative scrutiny. We need to know what is in the Bill in order to deal with the issue properly and provide the certainty needed to invest in our infrastructure.

The Government have missed an opportunity in this Queen’s Speech. On one side, yes, there should be incentives for investment—that is very important—but there is very little protection for consumers. I have long argued in this House that Ofgem, the energy regulator, should have more teeth. It should be standing up. It is a damned cheek for the new Energy Secretary—whom I welcome to his place today—to try to claim some credit for the fact that energy companies are providing greater transparency in their bills. It is campaigns by the likes of Which? and Consumer Focus and so on that have highlighted the problems and embarrassed the energy companies, while the Government stood by and watched. Ofgem should have greater teeth. I make a plea to the Government to take that on board, because energy costs are hurting people, in peripheral areas in particular. Many are off the gas mains and off the grid. I want Ofgem, the regulator, to have the same powers to protect customers who are not on the gas mains as it enjoys in protecting those who are on the gas mains.

Finally, let me move on to the subject of transport. I welcome the concept of High Speed 2, but I want to see it up and running. The Transport Secretary is quoted as saying, “Well, we’re preparing for legislation.” The legislation is vital, so can she give some indication of when it is likely to be introduced? We have done the consultation and the matter has been agreed by this House, although it is not popular with certain sections.

[Justine Greening]

The hon. Gentleman is right that there is an awful lot of preparatory work to be done to ensure that the hybrid Bill contains the information that this House needs to scrutinise the proposal properly. We expect that preparatory work to be done through the course of this year and next, and for a hybrid Bill to be introduced by the end of next year.

[Albert Owen]

I appreciate that. A hybrid Bill in itself will take a long time, so we are unlikely to see anything soon. However, I support the main thrust of high-speed rail. We saw benefits under the previous Government in north-west Wales, north-west England and Scotland after we invested in faster line speeds. High-speed rail is important.

My final point is about VAT on fuel duty. Every time people spend £1 on petrol, they have to pay an extra 2.5p. That really hurts people. It is wrong, and it should be reversed.

We needed a Queen’s Speech that set out proposals for jobs and growth. This has been a missed opportunity, on top of a botched Budget which has led us into a double-dip recession. That is damaging the living standards of my constituents and those across the United Kingdom.

--- Later in debate ---

[The Secretary of State for Transport (Justine Greening)]

I am obviously delighted to be here today. The hon. Member for Garston and Halewood (Maria Eagle) ought to try re-moding some time. We re-moded a lot of Ministers out of their cars at the last election, and I am pleased to say that many of them have had to get used to using the public transport system that many Ministers themselves use today, and very good it is, too. I came in on the District line today, and it was working perfectly.

We have had a broadly constructive and important debate on the cost of living, and some measured contributions from around the House. They have borne out that everybody realises the pressures that global oil and food markets and prices—combined, of course, with inflation—have put on household bills in recent years. That is why, even as we deal with the deficit left to us by Labour, this Government are taking action wherever we can to help family budgets. It is why, through raising the personal allowance, we are cutting income tax for 24 million people and taking 2 million people on the lowest incomes out of income tax altogether. It is why we have helped councils up and down the country to freeze the council tax for the second year running. It is why we cut fuel duty in the Budget last year, deferred the increase planned by the last Government in January, and cancelled another increase proposed by the last Government for this August.

When it comes to home owners being able to pay their bills, the most important thing we as a Government can do is to help maintain the conditions for the Bank of England to keep interest rates low. The hon. Member for Washington and Sunderland West (Mrs Hodgson) talked about the importance of that aspect of family budgets, and she is absolutely right. We have focused on that through the spending review, making a number of announcements setting out a credible plan to tackle the deficit and get control of our debts, meaning that we really help to keep interest rates low for the 11 million households with mortgages. That is in stark contrast to the impact of Labour’s plans.

I was very pleased to hear a number of Members welcome the Groceries Code Adjudicator Bill, which is in many respects long overdue. I look forward to the debate that will take place in this House to ensure it can be as effective as I am sure many Members want it to be.

The right hon. Member for Croydon North (Malcolm Wicks) and the hon. Member for Newport East (Jessica Morden)—I cannot see her in her place—talked about the importance of supporting families. This Government agree, which is one of the reasons why we have extended free nursery care to 15 hours for all three and four-year-olds and doubled the number of disadvantaged two-year-olds receiving 15 hours of free child care a week, helping 260,000 families. These are difficult decisions that we face, but we are doing our best to ensure that, in spite of that, we are helping the families that need our help and taking action wherever we can.

We need not take any lessons on the cost of living from Labour. Most people in Britain remember their record in government. Theirs was a Government who never lived within the public’s means, giving us the deepest recession since the war and running up the biggest budget deficit in our peacetime history. When it comes to measures that help to put money back into people’s pockets, we need not take any lessons from a party whose only approach to helping hard-working people make ends meet was to take more and spend more, raising tax 178 times, including 12 hikes in fuel duty. Labour Members talk about the cost of living, but on their watch band D council tax more than doubled; gas bills doubled; between 2004 and 2009 regulated train fares went up by nearly 20% and unregulated train fares went up by a quarter; and, for the first time since records began, GDP per capita actually fell in the last Parliament.

[Mr Harris]

rose—

[Ian Lucas (Wrexham) (Lab)]

rose—

[Justine Greening]

I will not give way to the hon. Member for Glasgow South (Mr Harris), as he has not been in this debate at all. I will give way to the hon. Member for Wrexham (Ian Lucas).

[Ian Lucas]

The right hon. Lady is talking about hard-working families, so can she explain why her Government chose to give tax cuts to millionaires rather than put money in the pockets of hard-working families so that they could stimulate the economy?

--- Later in debate ---

[Justine Greening]

I remember being in the Finance Bill debates last year, when the hon. Gentleman’s party voted against closing tax loopholes, which would really have strengthened our tax system. He knows full well that alongside reducing the top rate of income tax to 45%, which will help to stimulate entrepreneurship, we are closing loopholes, which will raise five times as much money from those very same people. We know that this sort of economic illiteracy that we are hearing yet again from the Labour party, which has no credible plan to tackle the deficit—its only plan is to spend more and borrow more—would mean that the economic credibility of the UK would collapse and interest rates would be likely to increase. Any business with a loan, any home owner with a mortgage and taxpayers funding the huge debt that Labour left our country would suffer the consequences, and that is not a path we plan to go down.

I shall briefly discuss some of the particular cost of living issues that hon. Members across the House have raised today. First, let me briefly address some of the challenges associated with rail fares. We know that keeping rail fares affordable is important, which is one of the reasons why we took action this year to limit the increase in regulated fares to 1% above inflation—[Interruption.]

[Madam Deputy Speaker (Dawn Primarolo)]

Order. I apologise to the Secretary of State, but a lot of private conversations are taking place on both sides of the House and they are disturbing my ability at least, let alone that of hon. Members, to hear what she is saying. Perhaps people who want to have private conversations could go outside.

[Justine Greening]

Thank you very much, Madam Deputy Speaker. That was extremely helpful.

We have taken action to limit the rise in rail fares, but all in this House know that if we are really going to tackle the underlying reason why rail fares are pressured to go up year after year, we have to make the railway system that we inherited from Labour, which is costing us £3.5 billion a year more than it needs to, work more efficiently. That is the best way of bringing a long-term end to the era of inflation-busting increases in regulated fares.

I have to say that one of the most depressing things in this House is to hear Labour Members raise a whole load of problems but provide no solutions. Making the railway industry work more effectively together is another area where I have heard no solution from the hon. Member for Garston and Halewood (Maria Eagle). I recall that when I delivered my Command Paper oral statement she said, “I will be setting out our alternative shortly,” but she has never done so. I will not even talk about the response to the flex, because the Minister of State, Department for Transport, my right hon. Friend the Member for Chipping Barnet (Mrs Villiers), demolished the hon. Lady’s argument so comprehensively that there is no need to go over that, compounding injury with further insult. In addition, we are, of course, making huge investments in rail and road. Those things will not only tackle some of the challenges we face today, but will build our country for the future.

On fuel duty, my hon. Friend the Member for Rossendale and Darwen (Jake Berry) and my hon. and learned Friend the Member for Sleaford and North Hykeham (Stephen Phillips) made vital points about why it is important that we make sure that motoring remains affordable, and about some of the pressures on motorists arising from the high cost of fuel. We have all seen the oil price go up across the world and how that has fed into the price of petrol at the pumps. It is one of the reasons why, last April, we cut fuel duty, why we scrapped Labour’s automatic fuel duty escalator and why we have postponed the planned rise this January to August, as well as cancelling the next planned increase. As a result of that action from the Chancellor we have eased the burden on motorists by £2.5 billion this year. In fact, over the coming two years it will add up to £4.5 billion in motorists’ pockets that otherwise, under the previous Government’s plans, would have been in Treasury coffers.

[Mr MacNeil]

I am grateful to the right hon. Lady for giving way. Is there any news on the fair fuel stabiliser coming down the tracks at all?

[Justine Greening]

The hon. Gentleman will be pleased to know that we have done that. He knows that we introduced it in the Budget last year and that it was partly funded by the tax rise for oil companies. I know that he welcomed the rural fuel duty discount pilot and I was pleased to get that from him. It is an important pilot and we will see how it progresses over the coming months and years.

Let us make a comparison with what would have happened under Labour’s fuel duty plans. Labour would have had motorists paying £144 more and the average haulier would have been £4,400 worse off if we had not taken the action we have taken. When it comes to prices at the pumps, no one will forget Labour’s record: 12 increases in fuel duty while they were in office and a further six fuel duty hikes planned for after the election.

Let me address the very important issue of buses. I listened intently to the speech by the hon. Member for Darlington (Mrs Chapman) and I am happy to meet her to talk about her local issues. She asked whether we could have a Transport for London-type approach in the rest of the country, but local transport authorities have had the power to impose such a model locally since 2000 and the flexibility to do so should they want to do that. The Government think it is up to local authorities, rather than Whitehall, to take that decision, but I am very happy to talk to her about her particular local issues.

We have protected capital spending on transport but have also had to take difficult decisions regarding the bus service operators grant. Nevertheless, I am delighted that we continue to make improvements in bus services, not least through the £70 million for the better bus area fund, the £31 million for green bus funding to cut carbon emissions and support British jobs and, of course, the £560 million of local sustainable transport fund money that funded 35 successful bids in part, including for improvements to bus services. Some £200 million has been spent on local major bus schemes. There is £20 million going to community bus services and £15 million supporting the roll-out of smart ticketing technology across England’s bus fleets. There are lots of good things going on in buses and we are still taking the steps needed to tackle the fiscal deficit left by Labour.

To conclude, whether we are talking about an income tax cut for 24 million people, taking 2 million of the lowest-paid out of income tax altogether, freezing council tax, helping home owners with their energy bills or limiting increases in rail fares, the Government recognise the pressures on the cost of living. Wherever we can we will continue to take action to help further, but there is no getting away from the fact that we are operating in a financial straitjacket as a result of the deficit. As my hon. Friend the Member for Worcester (Mr Walker) pointed out, there is no magic wand we can wave; we have to work hard to sort out our public finances and get our economy back on track.

Perhaps the greatest tragedy of the Labour years in office was what we got for all the money that was wasted and all the debt that was racked up. Nothing. In addition, there was an infrastructure deficit that was as bad as the financial deficit. Long-term security of energy supplies? Nothing. Low-cost railway? No. Reform of the welfare system? Nothing. Sustainable pensions? Nothing.

The reality is that tackling the financial deficit is one of the problems the Government need to solve, but we will make sure that we help out on the cost of living wherever we can as we rebuild our country. It would be fundamentally wrong to continue with Labour’s failed policy—to spend more, borrow more and pass the buck for our debts to our children and the next generation.

[Mr Alan Campbell (Tynemouth) (Lab)]

claimed to move the closure (Standing Order No. 36).

Question put forthwith, That the question be now put.

Question agreed to.

Question put accordingly (Standing Order No. 31(2)), That the amendment be made.

Olympics (Airspace Restrictions)

Justine Greening Excerpts

Tuesday 15th May 2012 Written Statements

[The Secretary of State for Transport (Justine Greening)]

On 7 March 2011 the Government announced our initial plans to introduce temporary airspace restrictions during the London Olympic and Paralympic games to help protect key games locations from potential airborne risks. We also committed to undertake further work to evaluate the potential impact of these measures before final decisions were made. This work, undertaken in conjunction with the aviation sector and the Government’s security experts, led to a revised set of planned airspace restrictions which were announced on 19 July 2011.

Since July 2011, the Government, with the assistance of the Civil Aviation Authority, have been preparing the necessary statutory instruments to give effect to the planned airspace restrictions. These detailed regulations have now been signed on behalf of the Secretary of State for Transport and will enter into force on 1 June 2012. NATS, the UK’s en-route air traffic service provider and publisher of the UK’s aeronautical information, will be publishing the details of these regulations on 17 May 2012 in its next aeronautical information circular. In addition, full details of the planned airspace restrictions, including maps, can be found on the airspace safety initiative website at www.airspacesafety.com/Olympics.

In total there are 15 sets of regulations, three covering the London area (a restricted zone for the main Olympics and prohibited zones for the Olympics and for the Paralympics), five covering the Olympic football tournament stadia at Old Trafford, Coventry, Newcastle, Glasgow, and Cardiff, and the remainder protecting the sailing venue at Weymouth, rowing at Egham and Eton Dorney, the road cycling events at Leatherhead and Brands Hatch, the canoeing events at the Lee Valley white water centre and the mountain bike racing at Hadleigh Farm in Essex.

Following extensive engagement with the aviation community, the regulations have been designed to minimise, where possible, their impact on aviation business, while ensuring the safety and security of the games. They also provide specific exemptions for aircraft such as those operated by the police or emergency medical services to enter the protected airspace, and for the Olympic Broadcasting Service to operate over the venues. We do not expect that any airports will need to close as a result of the planned measures, and there should be little or no impact on scheduled air services.

The Government’s paramount objective is the delivery of a safe and secure 2012 games for all, and the airspace restrictions will help to provide this whilst minimising the impact on the aviation community, so far as possible. However, the Government reserve the right to implement additional airspace security measures should the need arise.

Oral Answers to Questions

Justine Greening Excerpts

Thursday 19th April 2012 Commons Chamber

[Mark Garnier (Wyre Forest) (Con)]

5. What estimate she has made of the effect of the High Speed 2 rail project on job creation.

[The Secretary of State for Transport (Justine Greening)]

The Government expect that phase 1 of HS2, linking London and Birmingham, will support about 40,000 jobs. That figure includes 9,000 jobs during construction, 1,500 permanent jobs in operating the railway, and opportunities for up to 30,000 jobs in the regeneration and development areas located around stations. Phase 2, connecting Birmingham, Manchester and Leeds, will support a substantial number of jobs in those northern conurbations. A more detailed assessment is already under way as part of the sustainability appraisal for phase 2.

[Mark Garnier]

I thank my right hon. Friend for that answer. In order to reinforce the true value of HS2, will the Government give serious consideration to the expansion of Birmingham airport into a UK hub airport? That would create jobs in the west midlands, while also offering a viable and realistic solution to airspace capacity problems.

[Justine Greening]

I recognise that Birmingham airport has a crucial role to play and, as my hon. Friend will be aware, the Birmingham interchange station will enable it to be much better connected than it is at present. Birmingham airport already has planning approval for a runway extension, which should allow for the operation of airline services to more long-haul destinations. Even in the short term, there is a real opportunity for Birmingham airport to expand.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

May I urge the Secretary of State to readjust her priorities? In terms of job creation—and, indeed, almost any other objective—the true priority should be to create a modern, fast and safe transport network in this country, and especially across the northern regions. Will she make that her top priority, above any prestige scheme?

[Justine Greening]

I do not think there needs to be an either/or choice. We need to improve our transport system in the short and medium terms and plan for the longer term, which is what we are doing through HS2. I am committed to making sure our great northern cities are well connected. There is investment in the TransPennine Express, and there has been an announcement on the northern hub. A huge amount of investment is going in to ensure that those communities are better connected than they ever were in the past.

[Mr Brian Binley (Northampton South) (Con)]

I congratulate the Secretary of State on her brave decision on HS2. May I remind her, however, that the west coast main line will, perhaps, reach full capacity by 2022, and therefore urge her to bring forward the start of HS2 in order to ensure an earlier completion date?

[Justine Greening]

My hon. Friend is right to say that these huge infrastructure projects take time to come to fruition, and we are cracking on as fast as we can. We are also committed to making sure that we get this one right, which means taking a very structured approach to how we develop our proposals. In the meantime, I assure him that I take great care over his local services. He came to see me recently about Northampton station, and he made a compelling case.

[Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)]

When High Speed 2 eventually reaches Edinburgh, passengers getting off there will have a difficulty because under Network Rail’s current plans the taxi rank is to be moved outside the station. Will the Secretary of State ensure that passengers will still be able to switch to taxis with ease at Edinburgh Waverley station?

[Justine Greening]

Obviously, security issues are also involved, but I can tell the hon. Gentleman that I have already met representatives of the Scottish Government to discuss the longer-term plans that we have for improving the journey times between Scotland and the rest of the country. There are some exciting proposals that we can bring forward. I am very much looking forward to continuing those discussions over the coming weeks and months, and I very much hope that he will be involved in those discussions and thoughts, as they develop.

[Paul Blomfield (Sheffield Central) (Lab)]

6. What progress she has made on the electrification of the midland main line; and if she will make a statement.

--- Later in debate ---

[Mr Brian H. Donohoe (Central Ayrshire) (Lab)]

7. What recent discussions she has had with the Chancellor of the Exchequer on the cost of fuel.

[The Secretary of State for Transport (Justine Greening)]

I have regular meetings with ministerial colleagues on a range of economic issues. The Government are very aware of the impact that high fuel prices have on people who rely on their cars. In the Budget last year, the Chancellor cut fuel duty by 1p per litre and it is now 10p per litre lower than it would have been under the previous Government’s plans. Between 2011 and 2013, as a result of that change, the Government will put £4.5 billion back into the pockets of motorists.

[Mr Donohoe]

I should say that I thank the Secretary of State for that answer, but the problem is that the tax on fuel is not just the excise. There is also a thing called VAT which has not been taken into account in the equation. In her regular meetings with the Chancellor, will the Secretary of State suggest to him that they change the formula for the price of fuel, given that VAT plays a fairly significant part in that and the problem is now at a critical stage in my constituency? People are writing to me to say that they can no longer travel to work and that they are considering giving up their employment.

[Justine Greening]

We want motoring to remain affordable and, in fact, this Government are working very hard to ensure that that remains the case. We must also ensure that we take the decisions that can get our public finances back into order. We must do that if we are to continue to be able to invest in infrastructure such as transport. One needs only to come to Transport questions to see how important the issue is to many constituencies and communities, so I can assure the hon. Gentleman that we are trying to strike the right balance. We have taken action as a Government and will continue to review the situation.

[Robert Halfon (Harlow) (Con)]

Will my right hon. Friend put pressure on the big oil companies to reduce prices at the pump when the international oil price falls? Will she also do everything she can to increase competition and reduce the stranglehold of the four big oil companies on the smaller independent petrol retailers?

[Justine Greening]

We want to see competition in this arena and we also want to ensure that when our Government puts through fuel duty cuts, as we did last year, they get passed on. The evidence shows that they do, but I believe that my hon. Friend is right to highlight the situation, which we should continue to monitor. I can only reiterate to him—I know that he has campaigned hard and successfully on this in the past—that we will do whatever we can to try to ensure that motoring remains affordable.

[Karl Turner (Kingston upon Hull East) (Lab)]

19. At a time when record petrol prices are hitting families and businesses very hard, does the Secretary of State at least agree that it would definitely help those struggling businesses and families if the Government reduced VAT on fuel to what it was before the Government increased it to 20%?

[Justine Greening]

As I think the hon. Gentleman will know, it is not possible to reduce VAT on fuel without reducing it on standard rated items across the board. I hope that he will welcome the steps we have taken in his local area to make it more affordable for people to travel over the Humber bridge, but his proposition that we can reduce VAT on fuel without reducing it on everything else is wrong. If we did, we would have a huge hole in our public finances that would undermine our investment for public services.

[Miss Anne McIntosh (Thirsk and Malton) (Con)]

Is the Transport Secretary aware that Ryedale has the highest fuel pump prices in the country and that filling up the car costs more than the weekly grocery bill? Will she support my campaign for a rural fuel duty discount for the specific parts of Ryedale and Hambleton that are affected by the high cost of tax on fuel?

[Justine Greening]

I want to ensure that motoring is affordable for everybody. I think my hon. Friend’s question perhaps relates more to Treasury questions than to Transport questions and I know that my right hon. Friend the Chancellor has introduced and put in place plans to pilot such a rural fuel duty discount. I am sure that she will make her case to him on whether it could, in time, be extended to her community, too.

[Grahame M. Morris (Easington) (Lab)]

8. What assessment she has made of the effect on jobseekers of rail fare increases.

--- Later in debate ---

[Andrea Leadsom (South Northamptonshire) (Con)]

T1. If she will make a statement on her departmental responsibilities.

[The Secretary of State for Transport (Justine Greening)]

Last month we published the rail Command Paper setting out how we will reduce the cost of running our railways so that we can end the era of above-inflation fare rises for passengers. We have also kicked off the consultations on how best to bring fares and ticketing on the railways into the 21st century and to give local communities more power over local services. We also, as we have already discussed, set out our bus strategy, including new funding for low carbon buses and smart ticketing. Users of the Humber bridge have finally begun to benefit from the lower tolls that this Government have introduced.

[Andrea Leadsom]

When my right hon. Friend announced HS2, she assured the House that a fair property and blight deal would address any blight caused by HS2 and reassure property owners. Many people in my constituency have been trying to sell their home for up to two years but are without access to a compensation scheme. What can I say to them to reassure them? Will she reconsider the prospects for a property bond, which would be the only way of ensuring that the property market works normally?

[Justine Greening]

I assure my hon. Friend that I recognise the impact that plans for High Speed 2 are already having on individuals, communities and businesses along the line of route. That is why we will shortly consult on a package of measures that will help property owners. It is an important step for the Government and enables those affected or interested to respond to the consultation and help shape Government policy. She talked about a bond-based property purchase scheme. I assure her that I am committed to making sure that the package is fair.

[John Woodcock (Barrow and Furness) (Lab/Co-op)]

The minutes of the Whitehall meeting between Addison Lee chairman John Griffin and the right hon. Member for Runnymede and Weybridge (Mr Hammond), now the Secretary of State for Defence, on 13 October last year record that the then Transport Secretary said that

“he was interested to listen to the views of someone in the industry”

about opportunities to bid for plum Government chauffeur contracts. Given the cash for access scandal hanging over her Government, will the Secretary of State say whether she or her predecessor had any other private hire firms on the sofa pitching for business? Or do people get that chance only if they pay enough to become a premier league donor to the Tory party?

[Justine Greening]

If the hon. Gentleman’s proposal is that one should not be able to speak to any organisation that gives money to one’s party, it will certainly free up a lot of time in the Labour party’s diary. Labour Members could cut out all those union meetings. The bottom line is that this Government and my predecessor and I have always approached all our meetings with absolute propriety, and that is the case on this matter, too.

[Paul Maynard (Blackpool North and Cleveleys) (Con)]

T4. The Minister will be aware from her answers to my written parliamentary questions that the Labour party spent no money and completed no track work for the northern hub during its time in government. I am sure that the House welcomes the Ordsall Chord as the down payment on the northern hub, but can she assist those in the Chamber who might be frustrated by the lack of progress on how the new infrastructure projects, such as electrification, impact on the delivery of the northern hub?

--- Later in debate ---

[Elizabeth Truss (South West Norfolk) (Con)]

T7. Last summer, Network Rail closed the barrow crossing at Downham Market station and said it would consult local residents and councillors about the new crossing. A few weeks ago, I heard that a new crossing is to be built by July this year with no consultation with local councillors and residents. Will the Secretary of State look into this and secure a meeting with David Higgins for me and local councillors so that Network Rail can be held to account?

[Justine Greening]

I will follow up the issues that my hon. Friend raises. I know that Network Rail has been keen to do what it can to improve level crossing safety, but I recognise the concerns that she raises today and we will have them followed up and make sure that a meeting happens.

[Steve Rotheram (Liverpool, Walton) (Lab)]

T5. Is the Minister aware of the problems being caused to passengers travelling from Liverpool by rail to London on Saturday 10 May for the FA cup final at Wembley with no prospect of a return train until two days later? Will the Minister get the relevant authorities, Virgin, Network Rail and the Football Association, round the table and bang their heads together until common sense prevails?

[Justine Greening]

The hon. Gentleman will be pleased to know that I have already been on the case. The underlying problem that we are trying to solve is the fact that the FA cup was planned to start at 3 o’clock but will now start later at 5.15 pm. I have spoken with Sir David Higgins of Network Rail and Virgin, and with the Department for Culture, Media and Sport about the timing of the FA cup. It is difficult to change the Network Rail work, which is really important for maintenance and safety and has been planned for 18 months, but Virgin has said that it plans to put on longer trains on the Sunday to ensure that fans have a good opportunity to get back. We all recognise that when the FA cup starts at 5.15 pm and generally the last train back to Liverpool is at 8.10 pm it will always be a stretch for fans to get there.

[Anna Soubry (Broxtowe) (Con)]

T9. I am all for improvements in public transport, but the tram works in Broxtowe are causing widespread disruption to residents, and last weekend the Wilkinson store in Beeston closed, with no alternative premises. Does the Minister agree that when deciding routes, wherever they are in the country, it is imperative to work with local people and local businesses?

--- Later in debate ---

[Henry Smith (Crawley) (Con)]

T10. Will my right hon. Friend join me in paying tribute to the staff of Virgin Atlantic, Gatwick Airport Ltd and the South East Coast ambulance service for their professionalism when assisting passengers following the emergency landing of flight VS27 earlier this week?

[Justine Greening]

Yes, I will. I echo my hon. Friend’s thanks and praise for the staff of both companies and members of the emergency services who responded to the emergency landing at Gatwick on Monday. It is obviously too early to speculate on what exactly caused the incident, but it is now being investigated by the Department’s air accidents investigation branch.

[Alison McGovern (Wirral South) (Lab)]

Current electrification schemes for a better railway agreed under the previous Government will hopefully yield lessons on how to improve engineering processes and should make electrification of the midland main line and the important scheme for the Wrexham to Bidston line, which runs through my constituency, a better prospect. What early lessons has the Department learned on how to improve engineering for electrification?

[Mr John Leech (Manchester, Withington) (LD)]

Has the Secretary of State now calculated the cost associated with increasing the motorway speed limit to 80 mph and the increased number of casualties expected as a result of such a measure?

[Justine Greening]

We would quantify the pros and cons of any move to 80 mph as part of the consultation we would publish, and obviously an impact statement would also be needed. I can assure the hon. Gentleman that we want to reach an informed conclusion on this policy area and will announce our next steps shortly.

The Minister for Women and Equalities was asked—

High Speed Rail

Justine Greening Excerpts

Tuesday 27th March 2012 Written Statements

[The Secretary of State for Transport (Justine Greening)]

At the end of this month I will receive HS2 Ltd’s route and station advice for high speed rail lines to Leeds, Manchester and Heathrow. This is an important next step in our aspiration for a truly national high speed network, as set out in our programme for government. Phase 2 of High Speed 2 will spread the benefits of high speed rail further across the country, increasing capacity and enhancing connectivity by extending high speed rail lines to Leeds and Manchester and connecting other major conurbations in the north and in Scotland through seamless transition onto the existing network.

In fulfilment of its remit, HS2 Ltd’s advice will include options for stations in Manchester, Leeds, South Yorkshire, the East Midlands and at Heathrow Airport, as well as advice on the case and potential locations for additional stations. It will also cover the impact of phase 2 of the network in releasing capacity on the midland and east coast main lines, as well as further extending the benefits of released capacity within the west coast corridor.

I will consider this advice objectively and in detail over the coming months, and I intend to publish it in the autumn together with a Government response setting out initial preferred route and station options. An important part of this process will be to consider the views of delivery partners in the cities where HS2 stations may be located, including any underpinning evidence which they have identified. Understanding local desires and plans for development will be crucial in helping me reach initial preferences for station locations. I am particularly keen to ensure that the network best supports the economic potential of the cities and regions it serves, through well-integrated station locations that build on local and regional plans.

Minimising the risk of blight is a serious consideration, and it is for this reason that I expect to publish HS2 Ltd’s advice once I have reached a view on routes and station options. Publishing a detailed range of possible options without an indication of the Government’s preferences would generate unnecessary and harmful blight across areas that ultimately might never be affected by the lines. I will be working with national environmental stakeholders to discuss key sustainability issues and how best to consult on lines of route going forward to help meet the needs of different stakeholders and the public.

Following publication, the input of interested parties, including MPs and their constituents, will be valuable to help further develop the proposals that will go forward for subsequent formal public consultation. Only once a full public consultation has been launched and completed will any decisions be reached.

When preferred route options are published in the autumn we will consult on and introduce an exceptional hardship scheme to assist property owners impacted by the proposals. Further, in order to reduce uncertainty for those affected by the proposals, and to ensure that the benefits for passengers and business of a national high speed rail network are realised as soon as possible, I have asked my officials to explore options for bringing forward formal public consultation on phase 2 of High Speed 2 to 2013, and I will set out my proposed timetable later this year.

Olympic Penalty Charges

Justine Greening Excerpts

Monday 26th March 2012 Written Statements

[The Secretary of State for Transport (Justine Greening)]

The Olympic Delivery Authority (ODA) made proposals to me, following consultation, for the level of penalty charges and associated fees that should apply for civil contraventions of parking and other traffic management measures in traffic regulation orders and notices made for defined games purposes on the Olympic route network (ORN) and elsewhere in England. I am today announcing my decision on these proposals under the provisions of the London Olympic Games and Paralympic Games Act 2006.

The ODA proposed that in most locations the normal level of penalties and fees should apply, and that in all places the normal discounts and surcharges for early and late payment should apply. However, they also proposed that in order to help secure a high level of voluntary compliance with the temporary parking and other traffic management measures essential to the games’ success, increased penalties of £200 should apply on the ORN, and in two of the residents and business parking protection (or “LATM&P”) areas being established around the games venues—around the Olympic park and in the Greenwich river zone. In addition ODA proposed a higher vehicle pound release fee of £300 in the same two areas.

I have decided not to approve higher than normal penalties and fees on the ORN and in these areas, and to require all penalties and fees to be set at normal levels. I endorse the importance of securing a high level of compliance with the temporary traffic management measures, for the benefit of both the games and local residents and businesses. However I am not persuaded that a higher level of penalties and fees is an essential addition to the strategy of communication and advice to residents, businesses and motorists about the measures and their enforcement that is already well under way, supported by plans for effective on-street enforcement activity during the games, including tow-away resources. I consider that increased penalties and fees would be an unnecessary burden in a challenging economic climate when we are already asking businesses and commuters to consider making significant changes to their travel behaviour during the games.

My decision concerns penalties for contraventions of new temporary measures implemented for the games. It is consistent with that taken by the Mayor of London on 15 March not to approve temporary increases in the penalties and fees for contravention of existing measures in traffic regulation orders on the ORN in London and in the same residents and business parking protection areas.

I am placing in the Libraries of both Houses a copy of ODA’s table showing its proposals and the normal penalties and fees applicable in different locations.

Amendment of the Law

Justine Greening Excerpts

Friday 23rd March 2012 Commons Chamber

[The Secretary of State for Transport (Justine Greening)]

It is a great pleasure to be able to resume the debate on the Budget today. This is the coalition Government’s third Budget. It is a Budget that helps Britain to earn its way in the world, rewards working families, backs business, and sticks to our course of clearing up the economic mess that the previous Government left us. This Budget, like the last two, cannot be divorced from the urgent need to deal with Labour’s debts. Let us remember the crisis that we inherited less than two years ago. The state was borrowing one in every four pounds it spent and spending £120 million a day on debt interest alone. The country was taken to the brink of bankruptcy by a profligate Labour Government, leaving our people with the biggest deficit in the developed world.

This Budget marks another step on the road to a strong and stable economy, and that is why we are sticking to our deficit reduction plan, winning credibility in the markets and keeping interest rates low.

[Mike Gapes (Ilford South) (Lab/Co-op)]

Will the right hon. Lady explain why this Government are going to add £150 billion to total borrowing? Is that a sign of success?

[Justine Greening]

Many people who see that the hon. Gentleman’s party’s strategy is to borrow in the middle of a debt crisis will wonder why he is asking that question. I presume it is because he thinks that borrowing is not high enough.

This Government ultimately have a laser focus on making Britain the best place in the world to start, finance and grow a business.

[Mr Stewart Jackson (Peterborough) (Con)]

On the subject of Labour waste and profligacy, is my right hon. Friend aware that the Institute for Fiscal Studies says that had Labour been re-elected, it would have borrowed an extra £200 billion, which would have had a huge impact on interest rates, in particular, and, given the debt legacy in households, a calamitous impact on the economy generally?

[Justine Greening]

My hon. Friend is absolutely right. Labour Members have learned nothing from the mess they handed over to us. They see us in a debt crisis and their solution is to keep on borrowing—keep on digging—and we all know who would pick up that bill.

[Mr Russell Brown (Dumfries and Galloway) (Lab)]

rose—

[Owen Smith (Pontypridd) (Lab)]

rose—

[Justine Greening]

I will not give way; I am still replying to an intervention. The worst thing that Britain could do right now is to listen to the siren voices of the Opposition. They are very good at criticising, but they have absolutely no credible alternative, and that is probably the key message that will come across to the public who are watching this debate.

From easing access to credit and bringing down the cost of borrowing for small businesses, to cutting corporation tax and reforming the planning system, the measures set out in this Budget will help to get growth back into our economy. They will also help to rebalance the economy by supporting our companies—wealth creators shifting UK plc from a spend-and-borrow path under the previous Government to a make-and-sell future under this one.

[Owen Smith]

Will the Minister confirm that the Office for Budget Responsibility tells us that next year the volume of investment by British companies in the UK will go down by 0.7%—that is, 7% down on the previous year’s estimate? Is that right?

[Justine Greening]

If the hon. Gentleman reads the whole OBR report, he will realise that Britain is an economy that operates in a global marketplace. Of course, his solution to the challenges faced in that global marketplace is to go and join all the countries that are facing problems, not to tackle our own economic crisis that his party left us. I assume that most, if not all the interventions that I get from Labour Members will be cherry-picked statistics that offer no alternative solutions to the challenges facing Britain.

[Mr Russell Brown]

rose—

[Justine Greening]

I wonder whether the hon. Gentleman has an alternative.

[Mr Brown]

I am not about to cherry-pick a statistic, but let me give the Secretary of State some facts. I appreciate that she was not here at the time, but when the Labour Government came into power in 1997, the servicing of the debt that was left behind amounted to more than was being spent on transport and defence combined. That was a major task to be handled by the incoming Labour Government, so everything was not rosy in the garden.

[Justine Greening]

The previous Conservative Government handed over a golden economic legacy. It was the Labour party that handed over a Britain loaded up with debt, costing us £120 million a day in debt interest, and that left unemployment higher than when it came to office, like every single Labour Government we have ever had. I will take no lectures from the party opposite on economic management, and neither will the British people.

[Matthew Hancock (West Suffolk) (Con)]

On the question of investment from overseas, is my right hon. Friend aware that some Labour shadow Cabinet Ministers have said that they would reverse the corporation tax cut, which was cited by GlaxoSmithKline yesterday when it announced 1,000 new jobs in this country?

[Justine Greening]

Ultimately, Labour Members seem to know nothing about how business runs. It may be that none of them has ever worked in business. Keeping our corporation tax rate low is critical in re-establishing our economic credibility and our tax competitiveness. Those are fundamental building blocks in getting the investment that we are seeing. I wholeheartedly welcome the steps that the Chancellor has taken.

As my right hon. Friend the Prime Minister has said, the infrastructure deficit that we inherited is just as serious as the budget deficit for our future productivity and the country’s ability to be successful. Infrastructure matters because it makes possible our journeys to work, delivers light when we flick on the switch and provides the connections that have created the communications revolution. Whether it is the congestion on our roads, our ageing power stations or the slow speed of our broadband connections, we face massive challenges to ensure that we have the infrastructure that we need to put Britain at the head of the competitiveness curve, not just in the next four to five years, but in the next four to five decades.

My remarks will focus on transport, because the Budget sends a clear message about how crucial the Government and I believe our transport infrastructure is to our economic future. That reflects what business is telling us. The CBI states:

“There are large amounts of business capital waiting to be unlocked if the Government achieves a step-change on transport”.

The Institute of Directors says that it is

“essential to provide more and better transport infrastructure in order to sustain the UK’s competitiveness.”

The British Chambers of Commerce rightly states:

“Infrastructure is the lifeblood of British business.”

I could not agree more. The last Government delivered the biggest boom and the biggest bust. As we chart our way back to economic recovery, what companies and firms up and down the country rightly want to see is a Government taking action.

[Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)]

I find the Secretary of State’s emphasis on infrastructure appealing, because infrastructure is needed. Unfortunately, the Office for Budget Responsibility has put the majority of growth for the foreseeable future down to personal consumption. Last Budget, it said that 12.5% of growth would come from private consumption. It now says that the figure is 37.5%. That is the very growth that the Government have now condemned.

[Justine Greening]

I am not sure that the hon. Gentleman’s intervention made much sense. I agree that infrastructure is critical. The key part of the OBR report, which he ought to focus on, states that we are on course to meet our fiscal mandate and to get our public finances back in order. I am sure that he welcomes the OBR’s assessment that we will see the net creation of 1 million jobs in this country over the coming year.

[Helen Goodman (Bishop Auckland) (Lab)]

To explain further the point made by my hon. Friend the Member for Middlesbrough South and East Cleveland (Tom Blenkinsop), if the Secretary of State turns to table D.1 in the Red Book, which shows the detailed summary of the OBR’s central forecast, and looks along the line for “Fixed investment” by “General government”, she will see that it falls in 2011, falls in 2012 and falls in 2013. That is the point that my hon. Friend was making. The right hon. Lady clearly has not looked at the Red Book.

[Justine Greening]

This Government are investing more money in capital spend than was planned by the previous Government. If the hon. Lady is complaining about those numbers, she would be complaining even more if we had the misfortune of having her party in office. This Government are investing in infrastructure and putting unprecedented levels of investment into the railways, as I am sure she is well aware, even though she prefers to score a political point.

The Government are rightly taking action to make it easier for people and businesses to go about their daily business. We are cutting commuting times and speeding up journeys; getting people and products moving faster and more reliably; and ensuring that Britain is plugged into the global marketplace. Of course, the easy choice, faced with Labour’s debt and deficit, would have been to cut capital spending and major infrastructure projects. We are not doing that. Instead, we have taken a deliberate decision to invest in our transport infrastructure, from relatively small interventions that make a big difference such as hard-shoulder running on motorways, to huge projects such as Thameslink and Crossrail.

I am delighted that we have a London Mayor who is committed, alongside the Government, to driving forward projects such as Crossrail, which are vital to our capital’s future prosperity. It is vital that we continue to have a Mayor who is passionate and successful in campaigning on London’s behalf at the heart of the Government; a Mayor who refuses, unlike his opponent, to make empty spending promises based on imaginary pots of money; and a Mayor who will be the best possible advocate for London’s economic success when he welcomes the Olympic tourists and athletes in the summer.

[Gavin Shuker (Luton South) (Lab/Co-op)]

I am extremely grateful to the Secretary of State for giving way after that party political broadcast to re-endorse the London Mayor. Turning to a point of substance, may I ask her what her policy is on airport expansion in the south-east? The Government were keen to show a bit of leg in that regard, but have ruled out a third runway at Heathrow.

[Justine Greening]

The hon. Gentleman will be delighted to know that I will come on to that matter shortly. After all, this is a speech on infrastructure. I hope that when the Opposition spokesman responds, he will take the time to set out some kind of alternative plan. That would be of real interest to us all.

Five months into this job, I could reel off a long list of the transport investments that we are making. We are electrifying the trans-Pennine railway and the Great Western line from London to Cardiff, far surpassing the 39 miles of electrification that happened under the previous Government. That would not even stretch from Cardiff to Swansea, let alone from London to Cardiff. We are upgrading the Tyne and Wear metro. There are 45 local authority major schemes to improve connectivity across the country. We are finally progressing with the first parts of the northern hub project, which is so important to many Members.

I could continue, Mr Speaker, but we are investing in so many projects that you would probably call me out of order for speaking for too long. Therefore, let me summarise. The spending review set out more than £30 billion of investment for road, rail and local transport projects across the country. On our roads, we are investing billions to unlock extra capacity and ease congestion. We have set up the £560 million local sustainable transport fund, which gives local communities more power to design and deliver local transport systems. We have put in place the Growing Places fund to kick-start infrastructure projects.

We have given the green light to High Speed 2, a national high-speed rail network that will radically improve the connections between our great cities and, by doing so, help to create jobs and generate growth and prosperity. That sits alongside our unprecedented investment in the existing railway network, from new stations and rolling stock to line electrification, which will help to decarbonise the industry. That amounts to the biggest modernisation programme since Victorian times.

Hand in hand with additional resources for our railways goes the reform of our railways. The rail Command Paper sets out our vision for an efficient, effective and value-for-money rail industry. Our reforms will put the customer first and allow us to end the era of inflation-busting regulated fares increases once the vital savings are made.

Building on all those investments, the Chancellor announced further measures on Wednesday to improve our country’s transport links. He announced a £323 million package that includes a range of projects. There is an extra £150 million contribution towards the Growing Places fund, which will facilitate the economic growth, jobs and house building that our country needs so badly. There is £15 million for cycle safety in London, which will enable the innovative redesign of some of the capital’s most dangerous junctions for cyclists. There is £11 million more for low-carbon buses, which is part of the £101 million bus investment package that the Under-Secretary of State for Transport, my hon. Friend the Member for Lewes (Norman Baker) is announcing today.

In addition, the Chancellor has announced that the rail industry will benefit from £130 million of funding from Network Rail to improve rail connectivity in the north of England by giving the go-ahead to further parts of the northern hub project. That will include increasing line speed and capacity on the Sheffield to Manchester Hope Valley line, and reducing journey times on the Manchester to Bradford via Rochdale and Halifax line and the Manchester to Preston via Bolton line. We are linking up the great counties of Yorkshire and Lancashire in the way that they have always wanted to be linked. That all adds up to passengers enjoying better connections, faster services and more seats.

Our national road network is also a key part of our national infrastructure. The strategic road network carries two thirds of all the freight on Britain’s roads, and it is vital for all types of business from mail order retailers to industrial parks and shopping centres. We have already announced, in last year’s growth review, £1 billion of additional investment in the nation’s strategic roads, on top of the £2.3 billion planned investment in major improvements announced in the spending review. However, as the Budget makes clear, we want to go further and examine the opportunities for more private investment in the road network in future. We want to consider where we can learn lessons from other industries, and we want to build on the proposals in Alan Cook’s report on the Highways Agency.

[John Woodcock (Barrow and Furness) (Lab/Co-op)]

Will the Secretary of State spell out what will constitute a capacity improvement that could lead to extra tolling on existing roads? That is unclear.

[Justine Greening]

The hon. Gentleman will be aware of the work on how we can improve the A14, for example, and some of the options being considered could include tolling. If he is interested in finding out more about how the Government are approaching the issue, he can meet up with people who are involved in the A14 challenge. That programme of improvements will deliver for the community in that region in a way that his party’s Government failed to in 13 years.

The hon. Gentleman is looking at the sky and shaking his head, but I have a very, very long list of investments that the Government are making, whereas the Labour party delivered precious little. The biggest irony, of course, is that we ended up with all this debt, but what did it get spent on? Not the things that would have made a real difference to Britain—not roads, not trains. Labour frittered it away and wasted it on an unprecedented scale.

This Government understand that Britain is not just an island nation but a trading nation, so our ports must be world-class global gateways. That is why we are backing major container port developments such as Liverpool, Bathside Bay, Felixstowe South, London Gateway, Teesport and the port of Bristol. It is also why we want to see a successful and sustainable future for that other crucial global gateway, our aviation industry.

We should remember that our country and our capital are right up there with the very best when it comes to international connections. Only China and the USA have aviation networks more extensive than ours. We are directly connected to 356 international destinations, and no European country can match our connections to the world’s great commercial centres. There are more than 9,000 flights every year to New York, 3,000 to Hong Kong, 2,500 to Singapore—I could go on. To each of those important destinations and many others, Britain is the world leader.

Nevertheless, if we are to maintain that status, we have to take on the tough challenges facing the industry, whether it is improving the passenger experience or enhancing capacity and connectivity, while tackling the industry’s impact on climate change and the local environment. We are determined to look at those difficult issues. As the Budget makes clear, we will set out our thinking on aviation capacity and a sustainable aviation framework this summer. We are determined to ensure that we retain our aviation competitiveness and hub status in the decades to come.

An economy built on success requires investment in infrastructure that is built to last. That is why we need to invest in, reform and modernise our transport networks to make them the very best that they can be at not just national but local level. This Budget helps to lay those foundations for Britain’s future economic success.

We will not follow the Labour party’s advice to spend more, borrow more and put our economic credibility at risk. We will hold our course to cut Labour’s deficit, rebalance our economy and forge a path to sustainable growth. We will make the investment decisions needed to ensure that our economy is well placed to compete in the decades ahead. Tackling today’s challenges and investing in tomorrow’s future—that is what this Budget is about and what this Government are about, and we will build a country that we can be proud of again.

[Several hon. Members]

rose—

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[John Woodcock]

I am sure that businesses will now see a great opportunity to set up offices at the top of Mickle fell as a result of this great tax cut.

Ministers are making decisions that will make our economy more fragile and that expose where their true priorities lie.

[Justine Greening]

The hon. Gentleman said that he supported £6 billion of the £9 billion of spending cuts in the Department. Which £6 billion does he support? Will he give us a summary?

[John Woodcock]

I will be happy to, within the constraints of time, but I want to try to keep to the same time as the Secretary of State took. If you will allow me to go slightly over that time, Mr Speaker, I can do so.

We have not opposed £3.36 billion being taken from the Highways Agency’s budget, out of the total reduction of £3.86 billion. We have not opposed £1.73 billion being taken from the Transport for London budget, which represents the full reduction. [Interruption.] The Secretary of State looks surprised. If she had paid a little more attention to what we have been saying over the past several months, she might not have had to ask the question now.

We have not opposed £794 million of the road maintenance budget out of total reductions of £1.23 billion or £528 million of cuts from the Network Rail passenger budget out of total reductions of £1.29 billion. We have not opposed the efficiencies that are being made to the Crossrail budget, or the £231 million from the local authority major transport teams out of a total reduction of £731 million. The Secretary of State asked for the list and has got it. I hope she is happy.

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[John Woodcock]

I will not give way on that point, because I want to make progress.

I am afraid that the priorities the Government and Secretary of State have set out are not—

[Justine Greening]

Will the hon. Gentleman give way?

[John Woodcock]

As the right hon. Lady is the Secretary of State, I will give way once more, but I want to make a little more progress.

[Justine Greening]

So where does this £3 billion come from?

[John Woodcock]

I am glad the Secretary of State asks me that. I would expect a little more humility from the Government given that on their own plans they are set to borrow £150 billion more. We strongly believe that the cuts we do not accept represent a false economy that will act as a drag on the nation’s growth and stop us returning to the prosperity that this country desperately needs.

The Government’s priorities are not with the family who are struggling to make ends meet, with the small business that wants to create more jobs or with the employee who wants to be able to afford to turn up to work in the morning.

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[John Woodcock]

The hon. Gentleman seems to have more information about how the scheme will work than either me or the Secretary of State, who does not seem to know how exactly motorists will be clobbered with tolls.

Who, if anyone, will police tolls? Will contracts stipulate that tolls must be removed when improvements have been paid for? How will we avoid people being driven off the motorways and dual carriageways and back into the communities and road networks that the toll roads were built to relieve?

In addition to the fear of massively increased tolling, there could be a further, lasting sting in the tail for motorists from this Budget. Buried on page 70 of the Red Book are plans for what can be described only as a new stealth tax hike on motorists. The Government say they will consider reforming—by which they clearly mean “increasing”—vehicle excise duty. Ministers need to come clean on how much extra they plan to squeeze out of motorists through that new stealth tax increase. They also need to say what it will mean for motorists who behave responsibly and opt for fuel-efficient vehicles.

On a less testing note on the subject of sustainable road travel, let me say that the Opposition welcome the £15 million the Chancellor has found to help to make London’s roads safer for cyclists. The spate of injuries and deaths in the capital has been truly appalling, and the Opposition fully support the campaign, led by The Times, for significant change. As the Secretary of State will know, however, the Budget contained only this one-off grant for London—the fact that there is an upcoming mayoral election is a complete coincidence, I am sure. Labour has committed to reserving a portion of the roads budget to dedicated cycle facilities on roads across the country, not just in the capital. Will she make a similar commitment?

If transport on the ground is up in the air with the uncertainties created by the Government, transport in the air, aviation, remains at serious risk of being grounded—if Members follow me. On aviation capacity, the Government still do not know—and we still do not know after the Secretary of State’s speech—whether she is taking off or landing.

[Justine Greening]

What?

GLA Transport Grant (2012-13)

Justine Greening Excerpts

Tuesday 20th March 2012 Written Statements

[The Secretary of State for Transport (Justine Greening)]

During the spending review in 2010, my predecessor agreed a four year funding settlement for transport in London with the Mayor of London. In line with my duties under the GLA Act 1999, and after formally consulting the Mayor, I am therefore today reconfirming the GLA transport grant for 2012-13 at £2.829 billion. This grant is provided by the Government to Transport for London to deliver transport services and investment in the capital, including London Underground.

In line with my predecessor’s 20 October 2010 letter to the Mayor “Spending Review 2010: TfL funding agreement” and the Chancellor’s fare announcement on 20 October 2011, £881 million of this grant is designated an investment grant. This will support the delivery of vital tube upgrades, providing journey time savings and extra capacity for passengers, as well as investment in station upgrades and other projects, as set out in annex B of the 20 October letter. The remaining £1.948 billion is for the purposes of TfL.