No-Deal Brexit: Cross-channel Freight

Kevan Jones Excerpts

Thursday 2nd May 2019 Commons Chamber

[Chris Grayling]

I regret that any big company—particularly in the case of Eurotunnel—would take a decision to pursue a legal action at such a time, when the Government are seeking to operate in the national interest. But the law is the law, and we have to fulfil it. I agree with my hon. Friend that alternative dispute resolution is a good way of resolving such matters, when it can be delivered.

[Mr Kevan Jones (North Durham) (Lab)]

The criticism is not that preparations should not have been made; it is criticism of the way in which the contracts were awarded. The Secretary of State is doing his usual trick of standing back and saying that he is the innocent bystander in this situation. Is he actually saying that he just followed the advice of his officials and signed this off, or did he intervene and overrule, especially to ensure that Seaborne Freight were awarded a contract? Or is he just going to hide behind others and say, “It was somebody else’s fault, guv—not mine,” as he did with the train timetable idea?

Chester-le-Street: Rail Services

Kevan Jones Excerpts

Tuesday 15th January 2019 Commons Chamber

[Mr Kevan Jones (North Durham) (Lab)]

On this historic night, I am sorry that Members are now leaving the Chamber and will not be listening to the problems that my constituents are facing at Chester-le-Street railway station. However, I am pleased to have secured this debate to highlight the problems in Chester-le-Street and the surrounding area for people who use the station. Tonight we have been consumed by the debate on Brexit, but it is worth reminding ourselves that other issues are important to our constituents and that, despite our serious deliberations today, many of our constituents are just getting on with their lives.

Chester-le-Street railway station serves not only the town of Chester-le-Street but the surrounding villages and communities of North Durham. As Members might know, my constituency borders the Tyneside conurbation. Over the years, traditional industries in Chester-le-Street and large parts of my constituency have moved and closed, and the area has now become a commuter town for the area north of the Tyne and for parts of Durham and Teesside. Good transport links are therefore important for the economic viability of my constituency. In Durham County Council’s new economic plan, the transport links for the north of the county are highlighted as an important part of County Durham’s economic future. The journey time to Newcastle from Chester-le-Street and the south of Durham is less than 10 minutes, so in many ways it is an attractive option for people to live in my constituency and commute to work on Tyneside, down in Teesside or in Durham. That is why many people have located themselves in Chester-le-Street and the surrounding areas.

The main rail morning and evening services are provided by three operators—TransPennine Express, Northern and CrossCountry—but, since May last year, the main problem has been the reliability of services, particularly those run by TransPennine Express. Not only have trains been late, but they have often been cancelled altogether. Those two things are particularly difficult for people at the two main commuter times: first thing in the morning, when people are keen to get to work at 9 o’clock, and in the evening, when people want to get home. Commuters often find themselves either late for work because trains have been cancelled, or stuck in Newcastle or other stations further south in the evening with no ability to get home. In some cases, people have not made it home until 7 o’clock or later.

Due to the concern of many of my constituents who rely on Chester-le-Street station for their main commute, I called a public meeting in November, and it will be useful to highlight some of comments that were made not only at that meeting, but in the numerous emails and other correspondence that I have received from worried constituents. The first reads:

“In summary this week the Chester-le-Street to Darlington commuter trains have been cancelled on 7 out of 10 journeys.”

Another constituent said:

“The service continues to go from bad to worse with the morning service having been totally cancelled on 3 out of 4 days in the last week.”

One constituent, a working mother, said that she was finding it difficult to hold down a senior executive job in Newcastle as it had become untenable for her to regularly miss prearranged times to pick up her children from school because she was stuck in Newcastle station due to evening train cancellations. Another constituent wrote that the

“08:24 commuter train from Chester-le-Street to Durham has been cancelled again. We are all late for work again.”

Another said:

“How can the region be taken seriously if our trains aren’t on time 50% of the time.”

A further constituent said:

“While financial compensation does indeed help, it does not compensate for the trouble that working parents have to cause to others to get their children home.”

Another constituent mentioned not only childcare, but the fact that those who look after elderly relatives in the evening find it difficult to get home from Newcastle.

[Jim Shannon (Strangford) (DUP)]

I thank the right hon. Gentleman for giving way. He is always generous with his time, and I am here to support him, as I support others when it comes to Adjournment debates. From my research, I have found that the idea with trains is that they take people away from cars and buses. Unfortunately, in this instance—I think he mentioned this earlier—people are unable to get on to trains when they come into the station. Does he agree that one way of addressing overcrowding is to run longer trains? Is that an option?

[Mr Jones]

It is. The hon. Gentleman makes an interesting point. This should be a way of getting people out of their cars and off other forms of transport into Tyneside, Durham and Teesside. I accept that longer trains are an option, but if the trains do not turn up in the first place, that is a problem.

Delays and cancellations are causing real hardship to many of my constituents. I even had one resident contact me a few weeks ago to say that he had turned down a promotion at work because he could not guarantee to his employer that he was able to get in on time. These are real-life situations that are causing my constituents a lot of hardship.

[Ian Mearns (Gateshead) (Lab)]

My right hon. Friend and near constituency neighbour is outlining the fact that the Northern franchise has failed. The service that it provides to the people of the north-east, the north-west, Yorkshire and Humberside is disastrous. Everyone knows that, yet the franchise is allowed to get away with this nonsense and put the jobs of the constituents of my right hon. Friend and many others in jeopardy due to its shoddy service.

[Mr Jones]

I do not disagree with my hon. Friend. This is the economic case. People are losing the ability to access the jobs in Tyneside, Teesside and Durham. Many constituents feel hopeless because what can Government do about it? He raises an interesting point about the franchise and how it is operating. Whatever we do about the franchise, the penalties need to be tightened.

The other issue facing my constituents is that, when trains are cancelled, the trains that do turn up are overcrowded. It is only a short-distance commute, but we have had situations where people have been unable to get on later trains. One of my constituents was travelling further afield for a day out in York and had booked his seat some three months in advance because he was suffering from a bad back and was travelling with a friend with cancer, and they had to stand all the way from Chester-le-Street to York, which cannot be acceptable.

Some of the issues affecting the regularity of services to Chester-le-Street are directly related to the timetable. There has rightly been a lot of publicity on the issues in Manchester and Leeds, but a lot of that congestion has been having a knock-on effect further north, because the companies are then cancelling trains. The trains might go to York but they go no further north and other services are cancelled altogether.

The chaos in the Manchester and Leeds areas has been well publicised, but I remind the Minister, and certainly the operators, that the north is further north than Leeds and Manchester. The people who rely on this service in my constituency should not be sacrificed to ensure that the operators get their times right in Manchester and Leeds.

My constituents’ other frustration has been with the appalling way in which TransPennine Express deals with customers. No information is given to stranded commuters when trains travelling south from Newcastle to Chester-le-Street are cancelled in the evening, and no alternatives are offered for getting them home. People are just left to make their own way or make alternative provision. When that happens regularly to people with childcare responsibilities, it is not acceptable, and I know of one constituent in particular who has to care for her elderly mother. When a person is expected home at quarter past 5, it is not acceptable for them to arrive after 7 o’clock. I have raised the lack of information with TransPennine Express. There are not even staff at Newcastle to give information or to provide alternative forms of transport, be it replacement buses or alternative train options.

There is a compensation scheme but, again, TransPennine Express is not good at advertising the fact that people are entitled to compensation. As a one-off goodwill gesture, I think TransPennine Express should offer all regular travellers a month’s free travel, because people have had to put up with this for far too long. I would be interested to know whether the Minister has any powers to intercede in making sure that TransPennine Express pays reasonable compensation to people.

I come back to the point raised by my hon. Friend the Member for Gateshead (Ian Mearns) about the franchise. It is clearly not working. Either TransPennine Express needs to up its game and start acting like an organisation that cares about its customers, or the franchise should be taken off it. If we are going to refranchise, we should look in detail at how appallingly it has operated it so far.

Given the location of Chester-le-Street, travel by train should be an ideal opportunity for people to access jobs around our region, but an inconsistent service is not going to endear train travel to people. It certainly will not attract people to live in Chester-le-Street. It is not a selling point if people cannot rely on what should be an easy commute.

I have been raising for many years now the issue of why later in the day the service goes to a two-hourly service. In any future franchise, we should be looking at a more regular service. There is the capacity to grow the usage of Chester-le-Street station and—to reinforce the point made by the hon. Member for Strangford (Jim Shannon)—to take people off the roads and on to the railways.

I would like to raise an issue about the CrossCountry service that stops at Chester-le-Street railway station. There is a consultation about reducing the number of stops that CrossCountry does, and one of the proposals is to remove the service stopping at Chester-le-Street to increase the connectivity between major cities and towns on the CrossCountry route. If that happens—I have made representations on this, as has the county council—it will be important that those lost stopping services be replaced. Will the Minister ensure that that is taken into account in the consultation? If those stopping services are taken away, it is important that we have a replacement service, especially in the evenings.

[Ian Mearns]

There is speculation in the industry that CrossCountry is proposing that some if not all the services from the south coast of England terminate at York, not serving Chester-le-Street, which is obviously between York and Newcastle.

[Mr Jones]

If that happened, it would be a detrimental step for the north-east. It reinforces my point that many people look at the north and perhaps think it goes as far as York, Manchester and Leeds and no further.

I want to raise the issue of investment in Chester-le-Street. I have raised this with Network Rail. The footbridge over the station is in an appalling state of repair, but I have been told it will not be painted until 2020. Anything the Minister can do to get Network Rail to address that would be very important because, again, if we are going to encourage more people to use the station, the facilities need to be improved. Network Rail leaving it until 2020 to paint a bridge is not acceptable.

My constituents have had an appalling experience and rail service through no fault of their own. The purpose of this debate is to raise their concerns and the terrible way they have been treated, but there is also an important point about the economy and future of my constituency and how viable it is to attract people to come and live in what is a pleasant part of County Durham.

[The Parliamentary Under-Secretary of State for Transport (Andrew Jones)]

I congratulate the right hon. Member for North Durham (Mr Jones) on securing the debate. He has raised a number of important issues relating to his constituency and to County Durham more broadly, and I will address them all.

I entirely recognise the importance of Chester-le-Street station as a vital local link for the right hon. Gentleman’s constituents. I know how much they rely on it. The right hon. Gentleman said that the service was growing, and I can confirm that. The number of passengers has increased by about 30,000 a year over the past six years, and an average of just over 600 a day use the station. Those people play a vital role in the local economy: for instance, as the right hon. Gentleman said, they provide access to employment in both Newcastle and Durham. Nearly all the services are provided by TransPennine Express, with a handful of additional peak services provided by Northern and CrossCountry.

The right hon. Gentleman rightly focused on the central issue of performance—about which the hon. Member for Gateshead (Ian Mearns) also expressed concern—and how bad it became, particularly after the May timetable change. Let me stress that I entirely agree: the services that were offered to several parts of the country, including those offered by franchises in the north of England, were unacceptable. I must also stress, however, that important lessons have been learnt, some of which have already been implemented by the industry and have led to a significant improvement in performance.

The planned December 2018 timetable changes in the north were deliberately scaled back in favour of a phased approach. Risks were mitigated to the extent that this was largely a rollover of the May timetable, but with a focus on some performance “fixes” to improve the resilience and reliability of the network. They included changes to local TransPennine services between Leeds and Manchester, although I fully recognise that “the north” extends further than Leeds and Manchester. Indeed, I represent a constituency that is north of Leeds and Manchester. Those changes have already delivered significant improvements and the provision of standby trains at key locations to help recovery should things go wrong.

I observe performance daily, and I know that many Members on both sides of the House do the same. Performance on Northern and TPE has improved significantly since December. On TPE, according to the public performance measure—which can be found online—the number of trains that are on time has increased to about 83%. That figure still presents a significant amount of room for manoeuvre, and it is below target, but it is also 18% higher than the figure during the last period before the December changes. Although there has been an improvement in punctuality and a reduction in the number of cancellations, I agree with colleagues throughout the House that that is still not good enough.

As for Northern, the January figures so far show that about 89% of trains are on time, which is an improvement of about 10% on the figure for December. I am pleased to report that the number of trains that are late, very late or cancelled has substantially declined. This month fewer than 1 in 10 have been late, and just 1.3% have been very late or cancelled. However, I am aware of the base from which they are starting; I also know that the recovery of passenger trust is critical, and will only be delivered by a relentless focus on reliability and punctuality.

[Mr Kevan Jones]

I agree with the Minister, but what concerns me about TransPennine is that it does not care. A company that should be focusing on what is good for customers has no customer ethos at all. I would love to know how we can change that.

[Andrew Jones]

The right hon. Gentleman has made a significant point. I have to say that that has not been my experience when I have been dealing with the train operating companies, but it is nevertheless clear that the communication to which he referred in his speech has not been good enough. I shall say more about that shortly.

As part of the wider drive to improve performance in the north, the Government commissioned Richard George, a respected industry figure, to review the performance of the region’s rail network. He will recommend operational improvements to increase reliability in the short and medium term. Richard will co-ordinate and lead the efforts of Network Rail and the operators. His remit is to help industry reach the right conclusions so that passenger impact is central to every planning decision; the passenger must be at the centre of all of our decisions. He has already helped highlight problem areas and will provide his conclusions later this year.

In addition, since the May timetabling issues Network Rail has established a programme management office. This will also help to ensure future timetable changes can be better planned and managed. There will be no repeat of the processes that led to the failure of May 2018 and that timetable change.

I thank the right hon. Member for North Durham for raising the issue of communication and poor information about cancellations and delays. I hear it in other parts of our network too, and it is simply not good enough. There are customer information screens at Chester-le-Street station, and both TPE and Northern publish updated information on their websites and social media channels, but we continue to stress to these operators and the whole industry the absolute importance of giving passengers the information they need when things go wrong. I have raised this with the train operating companies and will continue to do so. It has not been good enough. Obviously I want to get to a place where we do not have to make these comments, but until then a focus on communication is important.

Airports National Policy Statement

Kevan Jones Excerpts

Tuesday 5th June 2018 Commons Chamber

[Chris Grayling]

I very much respect my hon. Friend’s view on this. He and I have not shared the same view, but I very much respect the vigour with which he has argued his case, not just over the past few weeks but over a long period. On the economic value of Heathrow versus Gatwick, it has been shown—and as the documentation published today shows—that once we get past the 2060s, the economic case for Gatwick catches up with and overtakes the case for Heathrow. Between now and then, however, the economic case for expanding Heathrow is stronger. We have used the methodology that the Airports Commission chose to use, and it does not factor in the significant strategic importance of freight at Heathrow, which is not counted. Heathrow is the biggest port by value in the United Kingdom, and this element will also deliver a huge economic benefit for the UK.

[Mr Kevan Jones (North Durham) (Lab)]

I welcome today’s statement and support expansion at Heathrow. Newcastle international airport is vital for the north-east economy, and the Secretary of State has already mentioned the support in the regions for Heathrow expansion because of increased connectivity from airports such as Newcastle. May I kindly suggest that, before the vote, he publishes the exact details of how those slots can be maintained, because a lot of that regional support is conditional on getting those additional slots?

[Chris Grayling]

I am happy to provide any further information that hon. Members require, and I am grateful to the hon. Gentleman for his support today. As he will remember, when we first announced our provisional decision last year, I made my first visit to Newcastle airport. It is a very good airport, and the leadership there told me how this project would help them to develop their business and help the economy of the north-east. I will certainly look to provide extra information, but I would say that some of the detail will become clear further along the process. At the moment, the advice I have is that we are probably best to use the public service obligation requirements to guarantee that those slots are available. Of course, the airlines will have to be willing to fly them, but as I said a moment ago, in a more competitive market in which new entrants are able to compete—as they do all around the United Kingdom but not at Heathrow—we will see routes appear that should have been there a long time ago. They are not there now, but they will be in the future.

Transport Secretary: East Coast Franchise

Kevan Jones Excerpts

Wednesday 23rd May 2018 Commons Chamber

[Chris Grayling]

I am not going to give way at the moment.

I will take no lessons from a party that says that it wants to dismantle capitalism and create a socialist society that looks fondly towards the disaster that has been Venezuela. Madam Deputy Speaker, did you hear the shadow Chancellor talking at the weekend about his vision for a socialist Britain? This is a man who does not even believe in private property. That would be disastrous for this country, and we must stand up very firmly against an ideology that would damage this country—[Interruption] Opposition Members talk about where investment comes from, but they do not understand that if the railway is in the public sector, that means it has to compete for precious capital day in, day out, and year in, year out, with other parts of the public sector—the health service and the education system. The reason why right now we have knackered old trains in the north of England—the Pacer trains that were no more than bus bodies bolted on to train wheels in the days of British Rail—is that British Rail, in the public sector, did not get the capital to invest properly, and that would happen all over again.

I am going to keep my remarks brief, because many Members want to speak. However, I do want to say a quick word about this week’s timetable issues on the railways, since the shadow Secretary of State raised them and they are of great concern to Members.

What we have seen in the last few days has not been good enough. No one should underestimate the logistical challenge of introducing a timetable change. The changes have been made for a very good reason: they mean a big expansion of services across the country. A timetable change of such a scale involves reorganising staff rotas, training staff for new routes, and reorganising how we deploy our trains. It needed months of preparation, and I am afraid that a number of things went wrong, but most particularly the fact that for the second time in six months, Network Rail was far too late in finalising planned timetable changes and left the rest of the industry struggling to catch up. I am not happy with that at all and I have told the leadership of Network Rail that it cannot happen again. But it is perhaps an uncomfortable truth for Labour Members, who keep talking about current problems as an excuse for nationalisation, that the problems that have arisen in the last few days are, to a significant extent, the result of failings in the nationalised part of the rail industry.

I know that many passengers have had disrupted journeys; that is not good enough. I am sorry that that was the case, and everyone in my Department and people elsewhere are working hard to get the problem sorted out. But this has been a major teething problem in what will be a step forward for the railways. Even with the unwanted cancellations, at the start of this week far more services were running than before the timetable change happened.

I know that some people have experienced change that they are not happy with. We cannot deliver everything for everyone, but this is going to mean better journeys for thousands of people up and down the country.

[Mr Kevan Jones (North Durham) (Lab)]

The right hon. Gentleman blames Network Rail for these problems and calls it a nationalised part of the railways, but he must remember that he is the Secretary of State. One of the main problems was the lack of consultation with the wider travelling public, or for that matter with many local Members of Parliament or local authorities.

[Chris Grayling]

There is a certain irony in Labour Members keeping on saying that they do not think I am competent and they do not think that the Department is competent, yet saying that they want to take a greater role in running a nationalised railway. That does not add up—it is a great contradiction—and the idea that they would be any better at it is for the birds.

The issue has arisen because of late delivery of the finalised timetable. That has created huge logistical problems, and two things have made them worse in the north. One is the fact that the electrification project on the Bolton line has gone wrong, which needs to be learned from very carefully indeed—[Interruption.] I do not electrify the railways personally. Secondly, there is the behaviour of the unions, which are currently, in the midst of a difficult period, going forward with work to rule in a way that is deeply regrettable.

--- Later in debate ---

[Mr Kevan Jones]

Is it not the case that what we are seeing here is not a free market situation at all? In a free market situation, a failing franchisee would lose money, too. The current situation is tantamount to going into a casino, putting on a bet, losing and being given back the stake. Surely risk should be shared with the private sector in future arrangements so it takes a hit, as well as the taxpayer.

[Alan Brown]

I completely agree. Rail franchise holders have been able to walk away. As has been said, the profits are privatised and the losses are underpinned by the taxpayer. That is not a proper free market model because there is absolutely no punitive action against franchise holders when they fail.

--- Later in debate ---

[Mrs Anne-Marie Trevelyan (Berwick-upon-Tweed) (Con)]

It is an honour to follow my near neighbour, the hon. Member for Newcastle upon Tyne Central (Chi Onwurah), who always speaks wisely on all things engineering and technical. I long to be as knowledgeable as she is.

I wish to thank the Secretary of State for taking this difficult decision to bring the east coast main line back into public control while we find a long-term, sustainable solution for the train line that takes me and my constituents up and down the length of our great nation, week in, week out. As he knows well, I am the MP for the northernmost English constituency, which lies some 350 miles north of us here, and so I am well aware of the crucial importance of good transport infrastructure to ensure business investment can flow into my constituency. That will help to grow strong, long-term successful businesses, which create great jobs for my constituents. This is one of the most vital investments the Government can make.

I have talked endlessly, and partially successfully, about why dualling the A1 from Morpeth to the Scottish border—[Laughter.] I heard that! I have talked about why that is so vital for economic growth and inward investment. Indeed, the Department for Transport based its financing decisions on that economic development model, which was so important to justifying why a rural county needed to address 40 years of lack of road investment. The Secretary of State has listened patiently to me over many years and has supported driving forward that investment. Obviously, we wait with bated breath for the sight of diggers, as they get closer in the months ahead. The Department can be assured that my constituents and I will not rest until the whole road is invested in, because that is a crucial way of linking up north Northumberland to Edinburgh, Newcastle and the rest of the UK.

It is not only road investment that is vital; the east coast main line, linking Edinburgh to London, is an efficient and speedy service, and it has two key stopping points at Berwick-upon-Tweed and at Alnmouth, which is Alnwick’s railway station. With recent and continuing improvements in parking provision at both those stations, we have seen substantial increases in usage by my constituents, who travel north and south for business, study and pleasure. It is a crucial rail transport link for my constituents, of all ages, so it is of the utmost importance to me that this train line is run sustainably and that the long-term security of the east coast line’s investment in rolling stock and the management of fares to ensure a competitive and effective train line is assured.

With the Ministers here, it would be remiss of me if I did not highlight the continuing campaign by my constituents to reopen the Belford station, which sits between Berwick-upon-Tweed and Alnwick, to create more opportunities for investment in that 1,000 square miles of rural constituency. Good rail links bring investment and economic growth, and we must continue to be able to invest in the line.

I remember our nationalised railway systems of old; one of my granny’s Sunday afternoons involved seeing whether we could get a train that went somewhere and could get us home in time for tea—it did not always work. The Labour’s party’s vision for train provision, which does not put the customer at the centre—

[Mr Kevan Jones]

I am sure the hon. Lady remembers British Rail, because we are still travelling on some of the 125 rolling stock first introduced by British Rail.

[Mrs Trevelyan]

It is not so much the rolling stock that I remember as not necessarily getting back for tea because the train just did not go—that used to cause my grandmother and I some disconcertion. The railway timetables were more an idea than a reality a lot of the time. That is a childhood memory, and the Labour party’s vision for train provision, which does not put the customer at the heart of all policy, will not work. The customer pays the fares and must be at the centre of those decisions. So I believe the Secretary of State has taken the right, difficult decision to use his operator of last resort powers to get the London North Eastern Railway—that lovely brand, which I believe is on a poster in one of our bookshops in Alnwick—up and running to ensure that my constituents and I can rely on it and we invest for Northumberland, knowing that our train service will be sound.

Airport Capacity and Airspace Policy

Kevan Jones Excerpts

Thursday 2nd February 2017 Commons Chamber

[Chris Grayling]

My hon. Friend and I share an aspiration to achieve that as soon as possible, but the working assumption is that the first plane will take off in the middle of the next decade. Perhaps we should have come to this decision a long time ago, but at least we are doing it now and we will get on with it as soon as possible. However, we have to do it in the right way and sustainably, taking great care of the surrounding communities.

[Mr Kevan Jones (North Durham) (Lab)]

I welcome today’s statement, but for this to be a truly national policy, it has to include the interests of regional airports such as Newcastle, which is so important to the economy of the north-east. This is not just about infrastructure; it is also about taxation. Today, the Scottish Government are halving air passenger duty and they will abolish it by 2021. Will the Secretary of State urge his Treasury colleagues to address the question of air passenger duty for regional airports, because it could damage their ability to compete?

[Chris Grayling]

I know the importance of this announcement for Newcastle. When I made my statement to the House in October about the Government’s proposals, I went to Newcastle the following day and met its chief executive. There is clearly enormous support in that area for the expansion of the airport. On APD, I am sure that the hon. Gentleman’s comments will be noted by Treasury colleagues in the run-up to the Budget.

Transport: North-east

Kevan Jones Excerpts

Wednesday 23rd November 2016 Westminster Hall

[Mr Kevan Jones (North Durham) (Lab)]

It is a pleasure to serve under your chairmanship, Sir Edward, and I congratulate my hon. Friend the Member for Houghton and Sunderland South (Bridget Phillipson) on securing the debate.

My constituency, like that of the hon. Member for Berwick-upon-Tweed (Mrs Trevelyan), is rural, although it is not quite as large as hers. She made an interesting point, because in parts of my constituency, too, without access to a car people cannot even get to the public transport system. Many of my constituents travel out of North Durham—as hers do from her constituency—to work in Teesside, Tyneside or Wearside. The important thing, therefore, is to have good transport links to those jobs that exist along the A1 corridor and in areas in the north-east.

Is the answer a metro for my constituency? No, it is not. My hon. Friend the Member for Houghton and Sunderland South talked about quality contracts, but she knows that I disagree with her about that. A quality contract would have done nothing for North Durham or, I hasten to add, for the constituency of the hon. Member for Berwick-upon-Tweed, because the Tyne and Wear councils would have got control over buses in my constituency. What saddens me a little is that the councils of the north-east, having lost that case—anyone who looked at the finances knew it was going to be lost, right from the beginning—seemed then to park the issue.

My hon. Friend the Member for Newcastle upon Tyne Central (Chi Onwurah) spoke about Oyster cards and smart ticketing. It is vital that the combined authority and the councils sit down with the bus operators to consider how to introduce things such as shared ticketing and Oyster-style arrangements. Bus companies tell me that they are willing to speak about the situation but that they are not getting a great deal of traction from councils.

We will do the travelling public of the north-east a great disservice if we simply wait for the national Government to come up with something or think that some future regulation will be the answer. The combined purchasing power of north-east councils is strong, given what they put into security services, for example. Leadership is needed, rather than thinking that in future we will somehow get a quality contract mark 2, as though that were the only game in town. I do not think it is.

There are opportunities to make a real difference, such as being able to change tickets between different operators, a smart-ticketing process like an Oyster card, or some agreement on children and young people’s fares, which I know that the bus companies are prepared to look at. Is that partly down to the Government? Yes, but some things are in our hands, and combined authorities and council leaders could act. I press them to start negotiations now to see what can be done, at least in the short term.

We have no large employers in my constituency, which is a former coal-mining area, and many people move out to work around the region. The other main network for my constituents, apart from the buses, is the railway and Chester-le-Street station. It is 10 minutes from that station to Central station in Newcastle. However, trying to get any investment, not only in upgrading the station but by ensuring that the operators stop more regularly and at times when people actually want to travel, is very difficult.

That could be dealt with straightaway by ensuring more stopping services and hourly services not only during the day—that is what we have at times; at other times they are half hourly—but at peak times, to ensure that we have regular stopping services at Chester-le-Street. That would avoid many people having to use their cars to travel into Tyneside, as they do at the moment.

Increasingly, my constituents complain about the poor service that they get from the operators, whether that involves trains being late, trains not turning up or, when they do turn up, trains being frequently very overcrowded. People sometimes do not even have the opportunity to stand for 10 minutes, because there is not enough room for them to get on at the station in Chester-le-Street in order to go to Newcastle Central.

I ask the Minister to look at the situation. The formidable Alex Nelson, the stationmaster at Chester-le-Street, always argues very strongly when it comes to refranchising for more trains to stop, but there seems to be a blind spot on the part of the operators and the people who draw up the timetables. My hon. Friend the Member for Newcastle upon Tyne Central talked about extending the metro, but I am sorry; I do not think that is the answer, certainly in parts of my constituency and in Berwick and other places. We need investment in rail—whether it be the Blyth-to-Tyneside route, the Leamside line or others—to increase capacity on the east coast main line, but I fear that over the next 20 to 30 years, most of the money will be sucked into the vanity project that is High Speed 2 and High Speed 3.

Some people in the region, including the chamber of commerce, try to lecture us about how important that project is to the north-east, but I do not think it is. It will be a drain on investment—investment that could go into rail projects in the north-east. It is not even a matter of jam tomorrow; it is a matter of the ingredients and possibly the recipe for creating jam. It will have a detrimental effect on some of the small changes that could be made to the north-east rail network that would make a huge difference to connectivity. The one thing that always gets me is how long it takes to travel from Tyneside to Teesside on a track that with some investment could be radically improved. I do not see that happening in the next few years, because, like I say, most of the rail investment in this country will be sucked into HS2 and HS3, which will not benefit my constituents or many other north-east constituents.

We need to put forward doable plans, but we should not think that everything is in the hands of central Government. On buses, there are certainly things that could be done now. The answer to getting people in the north-east out of their cars and on to public transport is not necessarily just to upgrade more roads. The hon. Member for Berwick-upon-Tweed has campaigned for many years for the dualling of the A1, but that will not directly improve connectivity in the north-east or the region’s economy. Although that would be a good feather in her cap, it is certainly not a priority when it comes to the sea change in connectivity that we need to ensure happens in what, as my hon. Friend the Member for Newcastle upon Tyne Central said, is quite a small region. People in the north-east increasingly do not live near their jobs but have to travel around the region, and it is difficult for people without direct access to public transport to get to those jobs.

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

I am on the other side of the argument. Re-regulation of buses is acutely needed, particularly in my constituency and especially in the rural parts of east Cleveland. My main concern is the growth in the use of taxis. I am not at all against hire cabs, but there is encroaching monopolisation in the industry. An aspect of transport that is not talked about is the ever-increasing employment of people in the industry, which is highly unregulated and does not best serve my constituents. One Middlesbrough company with a dubious background is encroaching into Redcar and Cleveland. My main concern is that the lack of regulation of rail and particularly local buses, where that problem is acute, is causing ever-growing demand for taxi services, particularly among disabled users.

[Mr Jones]

I hear what my hon. Friend says, but the quality contract was put up as the only game in town for the north-east bus network. I am sorry, but it never was. Proper regulation is important, but the way that it was done meant that it never stacked up financially. It would have meant that my constituency was more poorly served; for example, Durham taxpayers would have subsidised the Tyne and Wear metro system.

I hear what my hon. Friend says about taxis. I have scars on my back from my time in charge of taxi licensing at Newcastle City Council. May I give him some advice? If the political will is there, the regulation is there to be used; it is a matter of how it is used locally. I accept that that is not easy, because taxi drivers are a vocal section of the local electorate, but we made some major changes when I was in charge of taxi licensing in Newcastle. The regulations are there; it is a matter of how they are used.

Was there anything for the north-east in today’s autumn statement? No, there was not. There is a reason for that: the only bits of the north-east that were ever going to get anything under this Government or the previous Government were those with Conservative Members of Parliament. It is not surprising, for example, that money has gone into the A66 and the A1. Those Governments have made pork barrel politics a new art form. It is sad that people in the north-east are being penalised by the Government and denied any major structural investment just because they do not vote Conservative.

--- Later in debate ---

[Calum Kerr]

I thank the hon. Gentleman for his contribution. I have not given any thought to how money should be allocated. I do not like the phraseology that he uses, but he certainly puts forward an interesting idea. How do we rebalance the economy across England and across the UK? Devolution of power, including spending power, is an important aspect that needs to be considered. As I was saying, if HS2 is indeed so important, why could it not have started in the north of the country? Why could it not be part of redressing the balance between north and south instead of being done in a kind of hub-and-spoke way that reinforces the idea that it is all about London?

I was told that this room would be full of northerners. I do not know whether this makes any difference, but they are all southerners to me. That probably feels like an insult; I assure them that I do not intend it as one. Let me make a couple of points. First, why I am here to sum up, apart from the fact that the third party is asked to sum up in all debates? The reason is, despite being the spokesperson on the Department for Environment, Food and Rural Affairs and on digital, I am from across the border. Interesting interventions were made about how we in the south of Scotland work with the north of England. The more we can collaborate and work together, have a collective voice and look at ways in which we can become more connected, the more we can collectively redress the pull of the south to which I referred.

I will touch on an example that may appeal to the hon. Member for North Durham, which is to reference the longest piece of domestic railway to be constructed in Britain for more than 100 years: the Borders railway from Edinburgh down to Galashiels. It cost £353 million, it was delivered on time and on budget and it is smashing all predictions on passenger numbers. It was predicted to carry 650,000 passengers a year and the figure is now well beyond a million—it hit those passenger targets within six months. I give that as an example not necessarily of an alternative to high-speed rail but of the kind of projects we should consider.

[Mr Kevan Jones]

That is a good example of the sort of project that could deliver for the north-east, not to compete with high-speed rail but to bring rail back to communities in rural Northumberland and parts of County Durham, which would be beneficial to local people.

[Calum Kerr]

I 100% agree. With the fixation on high-speed rail, as the hon. Gentleman rightly said, the danger is that that sucks up too much money and prevents other projects that could deliver greater economic benefit while attacking some of the geographic challenges that hon. Members have mentioned. The Chancellor in his autumn statement today was keen not to mention too many individual projects. Bizarrely, he decided to talk about one country house refurbishment, although it seemed to me that that was more about scoring a narrow political point against the Labour party than anything else, but such is life.

I appreciate that I am going somewhat off-piste, so if the Minister wishes to bat this back to me I will understand, but is there any mention in the autumn statement or elsewhere on what the Government’s position is on extending the Borders railway through to the constituency of the hon. Member for Carlisle? The Scottish Government have a multi-modal study looking at transport across the Scottish borders and a key ingredient in that is extending the Borders railway service from Galashiels to Hawick and through to Newcastleton and Carlisle, which would create an extra link. That is the kind of project that we should be looking at. That is not necessarily to the exclusion of high-speed rail, but I know which project I would pick if I had to pick between the two. If the Minister could give me any kind of response on that, I would be grateful.

My final point is on pathways. The east coast main line remains an important line for us. The Scottish Government are committed to new stations at East Linton and Reston and a new service with new trains. My concern is that sometimes again we fixate on services to London—Edinburgh to London—which exclude local services, and that means that main lines become less viable. At the moment we are looking at a two-hour service, and once things are made irregular their viability and usefulness diminishes. The Government have a key role to play too in looking at all pathways and the balance between national services serving major cities and local services. I close by congratulating the hon. Member for Houghton and Sunderland South again on securing the debate.

--- Later in debate ---

[Andrew Jones]

That was very good timing, from a comedy perspective. I will talk about roads if I get a moment a little bit later.

We are very keen to continue the work on rebalancing the economy. The northern powerhouse is a significant part of Government thinking and has driven much investment over the past few years. We have created Transport for the North, which is a key part of the concept of the northern powerhouse—it is about taking control of one’s destiny. Transport for the North is driving forward transport plans and will support economic growth across the whole of the north. There will be a £13 billion set of investments in Yorkshire and the Humber, the north-west and the north-east during the course of this Parliament alone.

[Mr Kevan Jones]

Does Transport for the North’s remit actually go any further than the corridor that Minister referred to? I have certainly not seen a great deal of impact or any ideas for the rest of the north, which, if the Minister looks at a map, goes a bit further north than Leeds.

[Andrew Jones]

Transport for the North’s remit is the north: it is north-east, Yorkshire and the Humber and the north-west. That point needs to be made to it and I will happily make it.

Let me get back to the world of buses. I, too, am a passionate supporter of buses. I know that Nexus and the North East combined authority have been working hard to improve local transport in the north-east, and I applaud their work. The Pop card has been a great success and allows for a seamless, inter-modal shift between bus services, the metro and the Shields ferry. However, we have to go much further.

The hon. Member for Houghton and Sunderland South highlighted her disappointment that the traffic commissioner rejected the bid from NECA for the quality contract scheme. It is because of the desire for local areas to have more influence on the provision of their bus services that we have developed the Bus Services Bill. When drafting the Bill, we had clear objectives in mind: to increase bus passenger numbers and improve services. The Bill will have a range of tools to enable that, including new and enhanced partnership arrangements—although that might not be appropriate in all areas—and the provision for local authorities to have franchising powers. Franchising will enable authorities to specify the services that passengers want and to deliver an integrated network.

Our intention is that mayoral combined authorities will have automatic access, with other areas having access if granted with the Secretary of State’s consent. However, we are neutral about the methods that are chosen on a local basis. I do not mind what local authorities choose to do, as long as they achieve their objective, which is to put more passengers on the seats of buses.

The metro is clearly a fantastic asset for Tyne and Wear. I remember its arrival—the home where I was brought up is just to the south of there—and it was fantastic. That is why we are supporting it with a £317 million capital grant to reinvigorate the system and ensure that it continues to provide an efficient public transport system. We are also supporting the day-to-day operational costs of the system with a revenue grant of £203 million.

We have talked a bit in the debate about the business case. Nexus is working up a business case for further investment in the metro system up until 2030. Hon. Members asked whether the Department was open to that. My Department is actually working with Nexus to develop that business case, so yes, we are extremely open to it. I cannot give an indication of the timing of when that will be decided upon; we have to receive the case first. I am also aware that NECA has looked at a wide range of options for extensions, some of which would directly benefit the constituency of the hon. Member for Houghton and Sunderland South. I also very much like the idea of Hitachi providing the metro’s new rolling stock. “From the north-east, for the north-east” is a very attractive message.

Rail has been mentioned, so I should highlight the fact that Network Rail will be spending £40 billion between 2014 and 2019, in addition to the High Speed 2 investments. The key benefits that we will see locally will be in the new franchises: Northern and TransPennine Express. By 2019 we will see brand new TPE trains in service, two new TPE trains an hour between Newcastle and Manchester, an hourly TPE service between Newcastle and Edinburgh and additional services from Sunderland to Middlesbrough and Newcastle.

[Mr Kevan Jones]

I am grateful for that information, but if those services do not stop at Chester-le-Street, they are not actually going to improve things for my constituents at all.

[Andrew Jones]

Clearly trains have to stop if people are going to get on them. That argument does not seem to me a difficult one, but it is one that has to be built in to the franchise arrangements. I will happily take that back. The hon. Gentleman also asked about the Ashington, Blyth and Tyne line. The North East local enterprise partnership has asked us to consider a bid for development funding for the reintroduction of passenger services on that line, which seems to me to be very positive.

There has been some caution regarding HS2, which seems to me to be entirely unreasonable. HS2 will free up capacity on our network, inject capacity to allow more services to be provided and deliver benefits of £103 billion to the UK economy, around one third of which we expect to be in the north of England. Some 70% of the jobs that will be supported by HS2 are expected to be outside of London, so HS2 is an important part of our network.

We have not talked much about roads. Not only will we have a motorway running to the north-east for the first time ever, as highlighted by my hon. Friend the Member for Carlisle (John Stevenson), but there are also schemes to the west of Newcastle. With regard to today’s announcements, I can confirm that we have done five strategic studies in the Department for Transport as part of the road investment strategy. As part of those, the A66 will be dualled and there will be work on the north-west quadrant of the M60. That is part of the road investment strategy from 2020 to 2025, so the idea that the north-west is getting everything and the north-east is ignored is not true. There was a further announcement, which has not necessarily been picked up yet: that the Tees Valley east-west connections are also being approved to take the business case forward to the next stage. That is effectively a Darlington north-western bypass. That was a further positive announcement today.

My hon. Friend the Member for Berwick-upon-Tweed (Mrs Trevelyan) talked about people being doom-mongers and wondering whether anything would happen in people’s lifetimes. I was asked by a colleague whether HS2 would happen in anyone’s lifetime and I suggested that, as we were starting to do the build in the spring, it would be quite a good idea to hang on—we do not want a by-election. I agree entirely on the merits of the Borders line. It is one of the most beautiful parts of our United Kingdom, and it is a big success. I will be very happy to see it extended. That sounds like a good idea, but I have not seen anything further on it.

This is my last point. I hope that this quick canter through the various announcements that have been made has highlighted the fact that significant investment is taking place in road and rail. We have seen air capacity increased. We have changes taking place to buses—

Transport in the North-East

Kevan Jones Excerpts

Wednesday 15th October 2014 Westminster Hall

[Bridget Phillipson]

I am grateful to the hon. Gentleman for raising an important point that I have sought assurance about. My constituency borders County Durham, and many services that run through it go to and from County Durham. I appreciate that it is an important area that does need addressing, but the benefits not only for Tyne and Wear, but for the wider region will be profound. I hope that the right decision is made.

[Mr Kevan Jones (North Durham) (Lab)]

I shall expand on this point if I am called to speak in the debate, but there is nothing in what is being proposed that guarantees or helps rural bus services in County Durham or Northumberland. The fact is that whether the leaders of Tyne and Wear or others like it or not, the profitable routes coming out of Tyne and Wear subsidise the rural bus networks in my constituency and that of the hon. Member for Hexham (Guy Opperman); those will be taken away if the proposal moves forward.

[Bridget Phillipson]

I understand my hon. Friend’s concern, but I do not share his conclusion. I am sure that he will make his case strongly to the leaders of the combined authority. I am confident that the proposal will secure the long-term future of our bus network in Tyne and Wear and in the wider region in the longer term. I understand my hon. Friend’s concerns and am sure that he will set them out in greater detail.

Profit cannot be the sole priority for a public bus service. Competition can be an important way to ensure low fares and improve services. However, the existing system of deregulated bus services is broken. An investigation in 2011 by the Competition Commission was highly critical of deregulated bus services. It found that there was limited competition between operators, which tended to result in higher prices and lower quality for passengers. The report also found that head-to-head competition for services was unlikely between dominant operators. There was heavy criticism because some bus companies were accused of colluding to avoid direct competition entirely, which resulted in geographic market segregation. As in the energy market, a small number of companies dominate the bus market in the region. A quality contract scheme would create a level playing field, allowing new entrants to break into the market. It would also deliver better value for taxpayers and passengers alike.

I constantly hear from local people who struggle to get to work easily, especially shift workers in places such as Doxford international business park, where many thousands are based. The recently announced Metro strategy 2030 set out ambitious plans to develop Tyne and Wear’s Metro system, with the potential to include Doxford park in the long term. Current predictions estimate 5.4 million passenger trips per annum by 2030 on the South Shields to Sunderland to Doxford line, but any extension would of course depend on government support. The plan recognises both the importance of the business hub to our local economy and the need for regular and high-quality transport links to and from work. The proposal forms part of a comprehensive plan to improve transport in our region. The Metro Strategy 2030 includes a proposal to bring part of the Leamside line back into use. The North East local enterprise partnership has commissioned a study into the business case for reopening the line, and has identified improving links within the region as one of its key priorities. Long-term investment is important, but next Tuesday one part of the solution to our transport needs is within our grasp.

I am grateful to EDF, based at Doxford, for recently conducting a staff survey on public transport. In the survey, 38% of respondents felt that services to Doxford park were either very poor or poor value for money, 40% felt that services had either very poor or poor frequency during the day, and a shocking 62% felt that frequency during the night was either very poor or poor. One respondent noted that bus prices were so high that it was cheaper to use a car, with another being forced to catch three buses to get home if their shift finished after 8 pm. I visited EE, which is also based at Doxford, and found that many of its staff face the same challenges. I heard that those whose shifts finish at 8 pm literally run out the door to catch the last bus, or face a long wait. Others must come to work far earlier than their shift start time, because unless they catch the hourly bus service, they risk the consequences of being late. Obviously, that risks impacting on staff retention. That is not good enough. Visitors and staff at Doxford Park make an important contribution to our local economy, and they should be able to expect a fair, reliable and efficient bus service.

In 2011, Government cuts meant that the 3½-mile Sunderland central route had to be scrapped. The scheme would have eased congestion and improved access to Rainton Bridge business park. The loss of the scheme was hugely disappointing, and was made all the worse by the lack of alternative transport options for the staff there. The scrapping of the route has had a significant effect on traffic in the surrounding area and on local residents who live nearby.

I have been continually disappointed by the bus companies’ attitude to improving services for their passengers. The voluntary agreement that the bus companies are supporting would result in severe cuts to publicly funded bus services and to support for non-statutory fares, therefore falling far short of what is necessary. Bus companies are refusing to listen to their customers’ concerns, choosing instead to redirect routes that customers rely on, make meaningless changes to route names and numbers and to bus branding, and embark on a systematic campaign of scaremongering. Bus companies appear more concerned with threatening legal action than dealing with cuts to services and rising fares.

Yesterday morning, I received an e-mail from Go North East seeking to acquaint me with what it sees as the facts on a quality contract scheme. Go North East claims that customer satisfaction, including with fares, is higher than in any of the metropolitan authorities, and higher than in London. However, it fails to address the declining use of buses. Between 2001 and 2011, the number of people using the bus to travel to work in Tyne and Wear fell by 13%; the number of adult fare-paying passengers has also declined. Furthermore, the survey used to support the claim does not take into account the view of people who no longer use the bus because there simply is not one to catch any more.

Go North East claims that the quality contract scheme aims to take funding out of the bus system. That is simply untrue. The quality contract scheme will avoid cuts to secured bus services and to support for discretionary concessionary fares. The voluntary agreement preferred by the bus companies, by contrast, will lead to significant cuts in secured services and discretionary concessions, even if local public support remains at the same level.

Go North East claims that the voluntary agreement can start two years earlier than the quality contract scheme can. Many aspects of the voluntary agreement, however, are unacceptable or incomplete as drafted. In addition, the main potential delay to introducing the quality contract scheme would be legal challenge by the bus operators. I hope that they decide to do the right thing: to prioritise customers and recognise the democratic decision of the combined authority.

There is an inherent conflict between the desire for the voluntary agreement to be certain, legally binding and enforceable, and the need for flexibility to avoid the arrangement breaking competition law. Therefore, the voluntary agreement relies on trusting each of the operators to abide by the spirit and the letter of the agreement. Even under the voluntary system, however, bus operators may make changes to services without approval of the partnership board. That does nothing to create stability in our local bus network. Services will continue to be assessed on their commercial returns, rather than on their usefulness to local communities.

Whatever operators might say, the voluntary agreement fails to deliver the Oyster-style ticketing system that is a major advantage of the quality contract scheme. It is clear from the persistent scaremongering, threats of legal action and negative campaigning that the bus operators are primarily concerned with protecting profit, rather than improving the service for passengers.

In a time of difficult decisions about spending, it is crucial that we get the best value for money. According to the House of Commons Library, the taxpayer subsidised bus services by approximately £2.3 billion in 2011-12. Those subsidies amounted to about 45% of all bus operator revenues. As we are all paying for bus services, it is time to ensure that the money that we invest goes back into our communities. Nexus estimates that the quality contract would provide £272 million in economic benefits to the region over a decade by reducing fares, providing better services and ensuring more bus passengers.

Similarly, the northern region TUC concluded that there was a strong business case for the quality contract. It will harness any revenue surplus for the benefit of passengers and communities, rather than for bus company shareholders. The proposal would provide a sustainable funding future for buses in our region to a greater extent than all other options.

Next Tuesday, the North East combined authority will decide whether to introduce a quality contract scheme. The process has been too long and drawn out. I am glad that we would legislate to give local authorities more powers to create better bus networks and to make it easier to implement quality contracts. At the core of the debate is local decisions to deliver a service that works, supporting businesses, growth and job creation. Local people must have the bus services that they deserve. Even the bus operators acknowledge that the status quo is no longer sustainable. This is our opportunity to lead the way, but it is an opportunity that will not come again.

[Guy Opperman (Hexham) (Con)]

I congratulate the hon. Member for Houghton and Sunderland South (Bridget Phillipson) on securing this important debate. I appreciate and accept that it is fundamentally about bus contracts; I understand that and take the point, but I must comment that what a passenger landing at Newcastle airport has to do to get across town is clearly wrong. They must take the Metro into town, then get across to the railway station; with no integrated transport system whatever, they need to get another ticket from the Newcastle station ticket office to go to Hexham or anywhere else, then attempt to move on from there. We all have to work four days a week in London, so we know the beauty of the Oyster card system. Clearly, longer term, such a system—

[Mr Kevan Jones]

I understand where the hon. Gentleman is coming from and I fully support the idea of an Oyster card system for the north-east, but I am sorry, the ticketing process is not as he says. I do not know how much he uses public transport in the north-east. Tyne and Wear has a very integrated ticket system, with transfers, and certainly in County Durham the bus companies work hard to ensure the interoperability of tickets and the lowest price.

[Guy Opperman]

Someone in Northumberland attempting to go from Hexham to the airport in effect has to change tickets three times. An integrated system with an Oyster card would unquestionably drive down prices.

The hon. Member for Houghton and Sunderland South and I are both concerned about the future of rural bus services. I take her point that customer satisfaction with buses is good at present, but my constituents are deeply unhappy with the quality of bus services west of Hexham. West Northumberland and areas north of Hexham have suffered tremendously from problems with the buses. I have spent a huge amount of time looking after constituents with genuine issues to do with the bus service in the western parts of Northumberland and in the northern reaches up towards Scotland. Without question, if I were to ask the citizens of Gilsland, Otterburn or places to the west whether they felt that the bus service could be improved, they would be robust in their view that it could be improved massively.

I take the point that the bus contract is a matter for the LA7—the seven local authorities—and surely that is entirely what the combined authority is about. For it to move on in such a way is a massive step forward, because it now has the ability to drive forward comprehensive changes that simply would not have been possible for individual authorities.

I want to touch briefly on trains. On 3 September, I raised the subject of transport infrastructure in Northumberland in a 30-minute Adjournment debate in the main Chamber. Many of the points that I made were set out in detail, so I will not repeat them today. One point that must be made, however, is that many of the things that we are discussing derive not only from the Adonis report but from the excellent “One North” report, which was a proposition for an interconnected north, published in July this year. I have a copy and I urge anyone who is interested in north-east transport infrastructure to read it in detail. “One North” talks about the way forward. The report is driven by the city leaders of our key cities, including Liverpool, Manchester, Sheffield and Newcastle. It certainly expresses strong views on the desirability of interconnectivity in rail and transport services.

I endorse earlier comments about the Leamside link, which clearly needs to be progressed. The reality of High Speed 2 is that without the Leamside link the prospects for us will be limited. I have no doubt that any Government post-2015 will make progress with that link. Indeed, Sir David Higgins, with whom we have had communications, said that it is inevitable that the Leamside link will be part of the development of HS2.

I refer to the speech given by the Chancellor on 5 August 2014 in Manchester to the city leaders who were the creators of the “One North” report. He gave the report a strong backing and set out the way forward. My only criticism of the report is that its diagram of interconnectivity in the north—I intend no disrespect—focuses on north-south links, with only one lateral movement between Liverpool, Manchester, Leeds and the Humber ports. I urge the Chancellor to consider the importance of an improved crosslink between Newcastle and Carlisle—I will certainly be making the case for that at the autumn statement. The A69 is dualled to Hexham, but thereafter it is effectively a single carriageway, which has a huge impact on business, transport, housing and the ability to commute, as well as on the train network. The Tyne Valley line has definitely improved; passenger numbers are up and improvements are being made by both Northern Rail and Network Rail. However, the two transport networks going from east to west, or west to east—however we look at it—have to be improved if the north as a whole is to be properly connected.

I do not dispute that this debate is about transport in the north-east, but the reality behind the “One North” argument—one that will have to be behind any Government’s consideration of northern infrastructure, skills and the like—is that in the past we have been too obsessed with the north-east and the north-west. Anybody can see that if we do not look at the north as a whole our ability to effect real change is limited—certainly I can see that, as my constituency is in the middle of the two regions, going to the border of the north-west, and indeed the border with Scotland. I urge the Minister to take the message to the Chancellor that connectivity has to be across the north and not just the north-east, north-west or Yorkshire. I believe that that point has got through, but my one criticism of the “One North” report and the northern powerhouse approach is that there is no east-west link at the top. That certainly needs to be considered.

I have a meeting planned with the electrification task force that has been set up by the Secretary of State for Transport to work on the electrification of the Tyne Valley line. The east coast and west coast lines are both electrified. The train network in northern England clearly needs to be improved.

I want to put on the record my support for Northumberland county council’s approach to the Ashington Blyth and Tyne railway. That is a clearly a big project that can be moved forward. My only plea is that the council needs to think not only of larger projects such as that one, but smaller projects such as the Gilsland station rebuild. Thinking again of connectivity, Gilsland is where the Pennine way meets Hadrian’s wall. There is a distinct lack of bus services—to give a nice Radio 2-style link back to the original theme of the debate—in the very west of the county. Gilsland station is where Cumbria starts and Northumberland ends.

I look forward to meeting the electrification task force to discuss the Tyne Valley line and to the meeting I have planned with the Highways Agency next month to discuss the A69. I urge Northumberland county council and the two local enterprise partnerships—not just the North East LEP but the Cumbria LEP for the north-west—to come together so that we have a genuinely connected transport system. That is something we can all get behind.

--- Later in debate ---

[Mr Kevan Jones (North Durham) (Lab)]

I congratulate my hon. Friend the Member for Houghton and Sunderland South (Bridget Phillipson) on securing this important debate. What has come out of it so far is that there is a degree of consensus on some of the issues, so I do not wish to sound like the little boy who says the emperor has no clothes, but I have serious concerns about the quality bus contract going before the combined authority on 22 October. I will also briefly touch on the issues of rail and air.

The quality contract proposals have been in gestation since 2011—longer than the pregnancy of an African elephant. If we look at what is proposed, we have to question whether we have a solution looking for a problem, rather than a problem looking for a solution. The quality contract legislation was rightly introduced to address market failure. I accept what hon. Members have said about bus services being withdrawn, and that is market failure in terms of the effects on our constituents. However, no one can argue that the bus market in the north-east is failing from an economic point of view.

I have grave concerns about the quality contract. The impact on my constituency, in County Durham, and on the areas represented by Members from Northumberland, will be quite pronounced. The proposal from the combined authority provides for an exclusive contract to run all bus services in Tyne and Wear, but we must understand that people’s transport movements do not recognise local authority boundaries—that is the problem with the proposal. The hon. Member for Stockton South (James Wharton) suggested a solution that looked at the entire north-east, and that would be a better solution.

The quality contract is also being sold on the basis that it is the only way we will get an Oyster-type system. No, it is not, because advances have already been made on that issue. I support those moves, as I think all elected Members from the north-east, from all political parties, would, because they will make travelling easier. However, I do not recognise the argument put forward by the hon. Member for Hexham (Guy Opperman) that the ticketing system at the moment is very complex. It is not. The Tyne and Wear ticket system is one of the most integrated anywhere in the country. Likewise there is an integrated system in County Durham, with moves by bus operators on shared ticketing and making sure that people get the lowest prices. Yes, there is a need for action to improve integration across the region, but I do not think that there is a need to go down the quality service contract route to achieve that.

My constituency borders Tyne and Wear and it is a commuter constituency these days. The days of large-scale employment in coal mines are gone. People commute northwards to Sunderland and Newcastle, and southwards to jobs in Teesside. Twenty-five per cent. of the cross-border bus traffic originates in Tyne and Wear, and that is part of the problem with quality contracts. Those are the bus companies’ most profitable routes. That profitability sustains the rest of the bus network in rural County Durham and infrastructure such as Stanley bus station, and the bus station in Chester-le-Street. If that profitability were to be taken away there would be serious problems. My fear about Tyne and Wear’s proposals is that without that profitability there would be a direct problem in County Durham—and not just with sustaining the existing bus network; the system would affect garages and local employment, because of closures. With the franchise, there will be only one winner—the bus company that wins the prize of running buses in Tyne and Wear. There are currently three operators in my constituency and two will be losers. That will have a direct effect on the funding of existing services. I am also concerned that with the knock-on effect of the through route to Teesside and other parts south of the county bus operators will find it difficult to make the necessary profit.

Many of the ideas for the bus quality contract have not been really thought through. It is not possible to detach, somehow, rural County Durham and Northumberland from Tyne and Wear, as is being proposed.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

My hon. Friend makes some interesting points about profitability, but do I understand him right? Is he arguing that the bus companies should be allowed to maintain excess profits on some routes so that they, the private sector, rather than our elected representatives, can decide how to subsidise rural routes?

[Mr Jones]

I am sorry; that is what actually happens in practice with bus operators. There is an argument that somehow it is nasty to make a profit; but there are profitable routes, and that is nothing to do with the bus companies. The main route from Chester-le-Street to Newcastle, for example, is a profitable route. Why? Because people use it. That is a matter of fact, and irrespective of what politicians say it will not change. People vote with their feet and use the route.

[Chi Onwurah]

I certainly was not arguing that making profits is in some sense wrong. I was arguing—and it is market economics—that making excess profits is wrong, and it should not be for the private sector to determine which routes to subsidise with, effectively, public money. It should be for democratically elected representatives.

[Mr Jones]

No, I am sorry; my hon. Friend does not understand the system. [Interruption.] I am sorry, but she does not. If there are subsidised secured routes that are paid for by the taxpayer, the taxpayer can determine where they go. That is nothing to do with the bus company. My hon. Friend spoke of excessive profits, on those routes that are profitable, but there has to be money in the system; she should be aware, as I think many people are not, that under the current proposals Tyne and Wear council tax payers—I am not one—will underwrite its bus service system, with consequences for them if passenger numbers go up or more subsidy is needed.

I am not arguing for the old free-for-all, but that is not what we have. I remember the disastrous days of bus deregulation in 1986, with buses chasing buses, but we do not have that system now. A far better way forward for us would involve some type of regulation—and if the threat could be used as a bargaining chip with the bus companies I would totally agree with that. However, it is not a panacea for every issue. Quite a few hon. Members have talked about bus services being withdrawn, but a quality contract will not prevent that. They will be withdrawn unless more money is put into the system.

The hon. Member for Stockton South raised an interesting point, which is one that I make constantly to officers in County Durham. The problem is that in some of the areas in question buses are not the solution. We need to think of more creative ways to transport people from isolated communities, such as taxi-buses or alert-buses. I accept what my hon. Friend the Member for Sunderland Central (Julie Elliott) said: even in urban areas there can be isolated places. We need a system to feed the people who live in those places into the main, profitable system. That would be far better than to think that the solution is a bus. Quaking Houses is a nice rural village in my constituency, but there is not the demand for a double-decker bus on a Sunday. Reactive taxi services, for example, could take people to central hubs that would feed them into the network. That is how we need to think—not just focusing on buses, but more creatively.

[Bridget Phillipson]

I just want to point out that services are withdrawn not only because they are unprofitable per se. It can be because they are not profitable enough. Bus operators refuse to publish data on the profitability of routes. When there are big changes and routes are cut or withdrawn almost entirely—as happened in communities in my area such as Shiney Row, and Houghton and Hetton, which have big urban centres; a lot of people use the route—that is not about unprofitable services. It is just that the operators do not regard them as profitable enough. That is the distinction.

[Mr Jones]

I accept what my hon. Friend says, but under the current proposal those services will not be protected. The only way to do it would be to put more subsidy in. If the argument is that there is a bottomless pit of money from the taxpayers of Tyne and Wear to support them, that is fine; but in reality there is not.

To return to the cross-border issue, we might suppose it would have been thought about—and it has, but in a typically bureaucratic, council sort of way. The cross-boundary bus collaboration protocol is a fine document, from which I need to quote to show that the important people—the public and the people who provide the services—are being taken out of the equation. Paragraph 4.4 says:

“In the event that a Cross Boundary Service does have an adverse effect on the QCS Services the Combined Authority shall use reasonable endeavours to seek to agree amendments to the registration…of the relevant Cross Boundary Service”.

Therefore, there will be disputes, for which there is a great organisation called the cross-boundary officer group. It sends a shiver down my spine that it will be left to officers to deal with that. What clout will Durham have to protect services? None at all; because at paragraph 6.7 the document explains what will happen if

“the Council considers that the Draft Plan has an adverse impact on Service Users”

in Tyne and Wear:

“The Parties shall use reasonable endeavours to ensure that the Tyne and Wear Sub Committee considers such requests.

Where the Tyne and Wear Sub Committee makes such adjustments to the Draft Plan to accommodate requests made by the Council, the Draft Plan shall be deemed to be approved by the Council.”

It goes on:

“Where the Tyne and Wear Sub Committee does not consider it possible to make any such reasonably requested adjustments to minimise the…effect of the Draft Plan on the Council and its Service Users, the Combined Authority will seek to procure that the Tyne and Wear Sub Committee promptly responds to the Council in writing, providing reasons.”

If those involved fail to reach an agreement, it will go to a dispute resolution panel. That is fine, but what bureaucratic nonsense that system is. It will not help to solve cross-border disputes. We need to take a step back from the proposal, because it will be a problem for the likes of County Durham and Northumberland. I know that those plans have been in gestation for a long period of time, and that people perhaps think that because they have been sent a lot of work on it, “We’ve got to try and do something.” However, I would urge people to take a step back and think about it.

I want to raise two other issues. The first is airports, and I congratulate David Laws and the team at Newcastle airport, who have done a fantastic job. It is a gleaming example of where the private and public sectors can work together, not only to deliver great service to the travelling public in the north-east, but to be an important economic catalyst for the north-east economy, in terms of both passengers and freight.

I would like the Minister’s comments on one point, however. Under the new devolved arrangements for Scotland, will the airport passenger duty be devolved to the Scottish Government? If it is and we have two systems, undercutting will directly affect airports such as Newcastle, and their ability to compete on routes will be a problem. The Government are still out to consultation on another matter—the third runway at Heathrow—which is always seen as a London issue, but it is not. It is vital to Newcastle that that runway goes ahead.

I want briefly to touch on rail before I finish. In the north-east, there is an issue about the skills that we need to support existing and future rail infrastructure there. May I congratulate Newcastle college? I went to its new rail academy in Hebburn last week. It is a very forward-thinking project that is trying to ensure that people have the skills that they need, not only in terms of the hard-end engineering side of rail, but in terms of the softer, more customer-focused side. It will be a very good thing for a lot of young people to get access into an industry that has a future both in the north-east and in the rest of the country, and also has an international dimension that should be very important for them. With that, Mr Caton, I conclude my remarks.

[Several hon. Members]

rose—

--- Later in debate ---

[Mr Nicholas Brown (Newcastle upon Tyne East) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Caton. I congratulate my hon. Friend the Member for Houghton and Sunderland South (Bridget Phillipson) on securing this Westminster Hall debate, which is important for our region, as I am sure you can tell, Mr Caton, from the number of hon. Members who have turned up and want to take part.

All economies gravitate towards their centre, and ours is no exception. London and the south-east are a great powerhouse for the United Kingdom economy, but in our region we want to be part of that too. We are a net exporter, but crucial to our success as a region is connectivity with the rest of the world and, in particular, connectivity with the rest of our country. It is the function of Government to understand these economic laws and, where it is in the public interest, to push back against them. My criticism of the present Government is that they are just not taking regional policy seriously enough, and in no area of public activity is that more true than in transport.

We need only look at the funding figures. We receive a fraction of the transport funding that London receives. Per capita, funding in the north-east is £5; the same figure for London is £2,500. I put it to you, Mr Caton: is that fair? It clearly is not. If we are to have an integrated economy, bearing down on congestion in the south-east and dealing with the need for more economic development in the north-east, transport links are crucial and the funding formula should be more equitable.

In respect of national infrastructure spending, the north-east received 0.3% of the total, and we are 4% of the nation’s population, so we are not even getting a per capita share, but our needs are greater, so logically we should be a priority, not pushed to the back and out of the way. I hope that when the Minister sums up, he will address that point head-on. This is not just an argument about transport in the region, although that is vital; it is an argument about connectivity with the rest of the nation, of which we are a vibrant part. We should not be cut off from it because the transport links are not good enough.

I recently had the chance to visit one of the Government’s Work programme providers in the north-east. I asked what its biggest difficulties were in getting people into work, which is its function. Of course, it said that it was the lack of jobs. That is true, as all north-east Members of Parliament know; those who serve the Government nationally sometimes lose sight of that. However, the second biggest problem was getting people to work. When that was first said to me, I thought that it was the old business about youngsters not being able to get up in the morning, missing their buses and turning up late and all those other reprehensible things.

[Mr Kevan Jones]

And some older people.

[Mr Brown]

My hon. Friend helpfully says, “And some older people.” But no, it was not that. It was because the public transport links early in the morning, when people have to start work, are not good enough. Bus connectivity does not deliver in the way in which the pioneers of the Tyne and Wear integrated passenger transport network, of which we are all still proud, envisaged. Much has been said about whether the current bus services, and the relationship between the private operators and the public authorities, serve the region well. The present system clearly does not. Competition was a farce. I remember when it came in, and since its introduction the private sector has ganged up and monopolised certain routes and parts of the region. That is not private enterprise. A better solution needs to be found.

[Mr Gordon Marsden (Blackpool South) (Lab)]

It is a great delight to serve under your chairmanship, Mr Caton. I congratulate my hon. Friend the Member for Houghton and Sunderland South (Bridget Phillipson) on securing this important debate, and I emphasise that she has fought consistently and doggedly for better bus services for her community. I am pleased to see the strong representation from MPs across the north-east, who have spoken about their support for better-run services that work in the interests of local people. As a north-west MP, I agree that co-operation between the north-east and the north-west is a key part of the process. I do not have time to go through all the points that colleagues have made, but there is clearly a strong consensus among the Opposition about the need to move forward in this area. As my hon. Friend has said, we must look at new mechanisms and new structures.

I understand the points made by my hon. Friend the Member for North Durham (Mr Jones), who is a doughty defender of his constituents’ interests, and I am sure that those points should be taken forward. It is worth remembering what Nexus has said about the problems with the partnership offer:

“Whilst partnership boards would undoubtedly improve the dialogue between local councils and bus operators, the final decision on routes, timetables and ticket prices would remain firmly in the hands of the bus operators. This creates significant doubt over whether the improvements and savings would be achieved in practice.”

I want to recognise the hard work that Nexus has done over the past four years in pursuit of a quality contract scheme. In many cases, it has innovated where no passenger transport executive has gone before, with, frankly, little support from Government. The final decision must, of course, rest with the locally elected councillors in the combined authority, but the work that Nexus has delivered to them in recommending the quality contract deserves to be received thoughtfully and carefully.

[Mr Kevan Jones]

Will my hon. Friend give way?

[Mr Marsden]

I am sorry, but I cannot give way because of the time. We need to develop franchising schemes that can help to protect our bus services and their key role in society. Buses are too often the neglected foundation of our communities. As the Institute for Public Policy Research pointed out recently, three times as many passengers use buses as use rail. The Passenger Transport Executive Group has established that in metropolitan areas the bus networks generate £2.5 billion in economic benefits, which is five times as much as the £500 million of public funding that they receive. Buses provide economic and social opportunities, linking passengers up with apprenticeships, skills and jobs, as my hon. Friend the Member for Bishop Auckland (Helen Goodman) and others have said—not just any jobs, but aspirational, career-building ones. In the north-east, in particular, those benefits are valuable to the more vulnerable in society, who have few other means of getting around: young people, people on low incomes or those who do not want to or cannot afford to get snagged up in environmentally unfriendly congestion.

Too often, government works in silos, and too often, this Government have done so. Ministers must be alive to the possibility that better-run bus services can help to deliver Government objectives. Bus services can be a key factor in reducing energy demands and carbon emissions. The PTEG has shown that the best-used bus services in urban centres can reduce carbon emissions from road transport by three quarters. To meet the Government’s goals, people must have the bus services that they deserve right across the country, not only in London; my hon. Friends have already pointed out the absurd inequality of the funding structures.

Quality contract-type powers have worked before. As someone who grew up in Greater Manchester during the Thatcherite deregulation in the 1980s, I know how the metropolitan county council’s strategic oversight acted as a valuable devolved economic unifier in those areas. The selling off of those companies was accompanied by severe under-investment, which required the incoming Labour Government in 1997 to save what was left of the decimated bus service by boosting support from less than £1 million in 1997 to £2.3 billion in 2012, the latest figure. The previous Labour Government introduced quality contract legislation as a way for properly equipped communities to wrest back some control over services, and we progressively made the process easier.

Although Nexus has embarked on a step change to try to improve its bus services, it has not been given much assistance by the Government. More fundamentally, the Government have completely failed to grasp the value of the bus. It is no exaggeration to say that passenger numbers have fallen in most parts of the country outside London, which is not surprising because the Government have consistently slashed funding. Levels of support will be £500 million lower by the end of the Parliament than they would have been if 2010 funding levels had been maintained. The bus service operators’ grant has been reduced by 20%. According to the Campaign for Better Transport, £56 million of the funding for vital supported bus services has been cut. Freedom of information requests have revealed that council spending on local buses has fallen as a result of local government cuts, with Conservative councils likely to cut the biggest proportion of their bus budget. That has been a disaster for local communities, especially in Tyne and Wear where there are semi-rural areas, which, as my hon. Friend the Member for Houghton and Sunderland South has said, lack the light rail connections enjoyed by some other regions. I hope that the Minister, who is aware of the difficulties that affect rural communities, understands that problem and recognises that in a place such as Northumberland, which has had to cut its supported services by 19%, things cannot move forward.

An incoming Labour Government in 2015 would support large cities and combined authorities if they wished to establish London-style bus services and structures. We would want to emulate positive approaches to pursuing franchise mechanisms, such as the case we are discussing. The benefits of franchising systems are numerous and vital in today’s circumstances. We need strategically planned bus services that help all our communities, and bus fares that are sensitive to the crisis in the cost of living under the current Government. People have a right to expect cheaper fares through multi-operator tickets, which will give them the lowest fares going, whatever mode of transport they take.

Franchising can offer more frequent and punctual services and build into contracts incentives on punctuality. Such incentives are sorely needed, because Ministers have instructed the Vehicle and Operator Services Agency to stop going out and checking punctuality, which is now left to companies to self-police. The whole passenger transport experience needs to improve, and a franchised approach can take us down that route. Franchising can enable the provision of real-time information on bus stops, stations and the internet, and allow local authorities such as Tyne and Wear to target particular groups of people—perhaps young people—for special concessions.

As my hon. Friend the Member for Hartlepool (Mr Wright) vividly pointed out, the deregulated system often promotes crude cartels or de facto monopolies; it can allow inefficient bunching on most-used routes, while little is done to expand usage on new ones; and it often results in the ineffective use of subsidy. It is not the way ahead. Franchising can bring together local authorities, passengers, operators and trade unions to plan and deliver the network. It can create a virtuous circle of co-operation that encourages the devolution of decision making across an over-centralised England. The Government have failed in this area because they have not grasped the elements of the problem. As my hon. Friend the Member for Houghton and Sunderland South has outlined, the North East combined authority wants to move boldly on behalf of its residents, and it has chosen to look at recommendations by Nexus for a quality contract.

The Government have not come up with any other alternatives, and they seem to have little vision in this area. Buses were barely mentioned—I think they were given three words—in the Transport Secretary’s speech to the Conservative party conference last month. We recognise the role of buses in the heart of local communities. We pledge that under the next Labour Government, those communities will receive our support to find an easier process if they, too, seek to reclaim control of their buses. Through a combination of their cuts to local government, the lack of an overall strategy and their cuts to the bus funding structure, the Government have reverted to an isolated, siloed vision of what buses can do, rather than the environmentally friendly, socially useful, economic driver that buses should be. From what we have heard today, and from what I know, nowhere in the country needs that thoughtful, integrated, community-driven approach more than the north-east.

High Speed Rail (London – West Midlands) Bill

Kevan Jones Excerpts

Monday 28th April 2014 Commons Chamber

[Mr Kevan Jones (North Durham) (Lab)]

I declare my interest as a commissioner of the Commonwealth War Graves Commission. The commission had serious concerns about the elements of deregulation in the Bill that remove protections for monuments and burial sites where Commonwealth war graves are sited in this country. Will the right hon. Gentleman give an assurance that organisations like the Commonwealth War Graves Commission will be consulted as the Bill goes forward?

[Mr McLoughlin]

Yes. I give the hon. Gentleman that assurance on a matter that was raised with me privately by another member who served on the commission. We certainly will consult.

Of course, we must also get the property compensation right. I have announced an enhanced property compensation package and I wish to consult quickly on the further proposals. I want to do more, so we will introduce a need-to-sell scheme, which I want to be easy to understand and to work fairly. It is more than just a re-labelling of the previous exceptional hardship scheme. It will be more generous, too, but it does not stop there.

Let me outline the powers that the Government are seeking through this Bill. It provides the authority to undertake works required for the construction and maintenance of phase 1 of HS2: deemed planning permission for the railway; the power to purchase compulsorily the land required for the phase 1 route, as well as for business relocation and regeneration; modification of existing legislative controls that are not designed for a hybrid Bill—a process based on that used for HS1 and Crossrail; and the ability to nominate a person or organisation to deliver phase 1 on behalf of the Secretary of State.

I believe that the Bill before us today has the power to change our nation profoundly and for the better. Yes, HS2 is ambitious; yes, it will take a great deal of investment; yes, it will take time to complete—but so did the canals, the railways and motorways that previous generations left as their legacy. Our age can achieve something just as great. I am from the midlands—I was born in Staffordshire and I represent Derbyshire—and I know the potential of Britain. I know that, built right, on time and to budget, High Speed 2 can help our great cities thrive.

The choice comes down to this: do we invest in modern transport links to make sure that every part of Britain can compete for the best jobs, or are we really happy for London and the south-east to power ahead while the rest get second best? Put like that, the answer is clear to me. Yes, this project deserves careful scrutiny—the processes are in place to ensure that—but it also deserves to go ahead. Britain needs it to go ahead. Tonight, I hope that we will make good progress towards that end. I commend the Bill to the House.

--- Later in debate ---

[Mary Creagh]

Well, I do not share anything teensy-weensy or of any other size relating to the hon. Gentleman—[Laughter.] I think we will leave it at that. To give the hon. Gentleman a straight answer, I think that it is important to work co-operatively across the House on issues of national significance The debate that we have had has shown that the vision is important, but also that the concerns and the case for mitigation must be listened to. If we are elected next year, I hope that that will continue during the construction of the line.

High Speed 2 will cut congestion on the railways, better connect our cities and help to deliver a one nation economic recovery, which is why Labour will support the Bill tonight. Its 335 miles will be the longest and most ambitious piece of rail infrastructure to be built in this or the last century. Managed properly, HS2 has the power to transform the economic geography of our country. It will build up our great cities and bring them closer together; it will connect people to each other, to work and to leisure; and it will help to rebalance the economy, creating new skilled jobs and apprenticeships in every nation and region of our economy.

[Mr Kevan Jones]

My hon. Friend says that the project will link the cities and regions of our country. Does she include the north-east in that?

[Mary Creagh]

I certainly do. The full Y line will terminate 14 miles south of York so that the classic compatible network trains will be able to run from the north-east—directly from Newcastle—and join the high-speed line outside York, significantly cutting the journey time to Old Oak Common in London and to those intermediate cities of Leeds, Sheffield, Nottingham and Birmingham. There will be significant benefits to the north-east.

Rail 2020

Kevan Jones Excerpts

Wednesday 3rd July 2013 Commons Chamber

[Iain Stewart]

The hon. Gentleman seems to have a rose-tinted view of British Rail. I gently remind him of the nationalised British Rail catering options, from the curling cheese sandwiches to the tea and coffee that were indistinguishable. I would support private innovation in that field.

[Mr Kevan Jones (North Durham) (Lab)]

I am sorry that the hon. Gentleman has such strange views of the old British Rail, which I accept was starved of investment under successive Governments, but certainly the breakfast on the east coast main line was excellent.

[Iain Stewart]

I am too young to have been able to enjoy the east coast main line in those years, so I cannot comment, but from what I remember of the old British Rail Scottish region, the catering offer was not—

--- Later in debate ---

[Ben Gummer]

The hon. Gentleman is a marvel of this House and is respected deeply by many Members on both sides of the House. However, he must see that the graphs of declining rail use up to 1995, for both freight and passenger, were turned on their heads after privatisation. That is not just a correlative effect, but a causal one.

[Mr Kevan Jones]

I am interested in the hon. Gentleman’s history lesson. He is right that the early railways were pioneered by private enterprise. However, by the time they were nationalised, many of them were in a dire state. That was the case not just in this country, but around the world. Rail passenger numbers went down after the war because there was a rise in car ownership and because of the development of road transport. The reason Germany has good railways is that a British civil servant planned the system after the second world war.

[Ben Gummer]

This is an interesting parlour game and we should pursue it at greater length outside the Chamber. The hon. Gentleman is right that the railways were on their knees after the war. That was partly a result of the war and partly a result of the rise of the car.

It is interesting that this necessary monopoly that was challenged profoundly in the second half of the 20th century is now able to compete successfully with motor vehicles and planes, precisely because of the investment from the private sector. As a result of that investment, the subsidy per passenger kilometre has gone down considerably since privatisation, even though the total subsidy has gone up.

[Ben Gummer]

I agree completely with my hon. Friend. I will come on in a second to the link between his constituency and mine.

[Mr Kevan Jones]

Will the hon. Gentleman give way?

[Ben Gummer]

I will give way in a while, if I may.

The Government are continuing a strategy. There are, rightly, arguments about whether the franchising process was got exactly right, but to my mind, John Major’s privatisation of the railways was one of his most significant acts. It has transformed the way in which—[Interruption.] Opposition Members laugh, but they ignore the fact that we now have some of the safest railways in Europe, second only to Luxembourg, which we did not have before privatisation.

[Ben Gummer]

The hon. Lady shakes her head, but she should listen to the facts. We have the fastest rate of passenger growth in Europe. We have the safest railways in Europe after Luxembourg. That is the result of privatisation, which has made a significant difference.

The ideologues are the Opposition Members, including the shadow Secretary of State for Transport, who espouse the ideology that dare not speak its name. She wants gradually to bring the railways back into public ownership and undo the extraordinary progress that has been made.

[Mr Kevan Jones]

The hon. Gentleman has a very selective view of history. He obviously does not remember—perhaps he was still at school—the period between privatisation and the effective renationalisation of Network Rail, when there were a number of tragic rail accidents in this country because of the inefficient way in which privatisation was carried out and the lack of investment. He must take into account that the effective renationalisation of Network Rail was how the investment was got right.

[Ben Gummer]

I am giving a bit of history because it does inform our discussion of the franchise process, which is the core of the report. I am not going to start trading statistics, but over the period of Railtrack, rail safety improved and we were going up the European safety league table. The reason so much money had to be invested—very successfully with private help—was the years of underinvestment by a series of Governments, Conservative among them. I disagree with the hon. Gentleman’s intervention on that point, not least because the facts on the safety of the rail network under privatisation speak for themselves.

How do we get this franchise system to work so that rail companies can compete with their natural competitors, the motorways and the airlines? I plead with the Government to do as much as they can. I know that the advice they have had recently has been to shorten slightly the long franchises that have been planned, but the longer the franchise rail companies can get, the better their ability to invest in rolling stock, customer service and improving the capacity and punctuality of their services.

Those of my constituents who have had the misfortune of having to commute on the Ipswich to London line for a long time will say that the best improvements they have seen were under the first franchise—as I am sure my right hon. Friend the Minister will agree—which was quite long and had the loosest possible terms. It allowed the then Anglia franchisee to put maximum efforts into improving performance. The last Government did many good things in rail, but one of the bad things was to have far too tight a control over the franchises, stipulating to the dot and comma how the services should be delivered. Unsurprisingly, the bidders for those franchises went in at the lowest possible price, bidding on the specification provided by the Government, and the improvement in service flattened and, in some cases, reversed. We need as loose a franchise framework as possible, and as long as possible so that the private sector can invest as fully as possible in the services without being second-guessed by the doubtless otherwise brilliant officials at the Department for Transport.

We need to see other improvements, and I am glad that the Committee recommended them in its report. We need transparency in subsidy. The system is still not good enough at identifying where subsidy goes. I have tried to understand how much subsidy goes in to the great eastern main line. Network Rail and the Office for Rail Regulation are not good at disaggregating subsidy in sufficient granular detail. I have questioned them about control period 5, but it is almost impossible to get a decent idea of the quantity of subsidy or public investment we are likely to get in our line, which makes it very difficult for us, as public representatives, to fight for our constituents.

Transparency is also important for the way in which the franchise system develops. When privatisation was introduced, there was only one profit-making line in the UK and there are now many that turn a surplus. Effectively—and I know that the Minister disagrees with me slightly on the detail of this—fare income is transferred from one part of the country to another. Roughly £30 of the £74 standard fare ticket from Ipswich to London is paid in premium which is moved, effectively, to those parts of the country that need a subsidy. That is unfair on my constituents, especially those who are paid the same bad wages that some people in subsidised areas are paid. They rightly demand a social subsidy so that they can get their rail service for less than they would otherwise.

If a lot of our fare income is being moved to other parts of the country, it makes it difficult for us to get the investment we need. We should have more transparency about how the premiums are moved so that we can achieve some sort of parity for investment.

I turn now to a discussion of the east of England, and I know that the Minister has a constituency interest there and, therefore, a profound knowledge of the area. Only two regions of England outside London are net contributors to the UK Exchequer: the south-east and the east. Since the 19th century, the eastern region has suffered some of the worst levels of investment. Historically, there has been a poor level of investment in the main line from London to Norwich, with hand-me-down carriages and levels of service that other parts of the country have long forgotten about. The region has contributed to the UK economy in the past five or 10 years, but investment is needed for that contribution to continue. The region is not demanding new motorways or A roads, but investment is required for people to able to get from London, Ipswich and Norwich to the midlands. That would lead to growth that would make a significant contribution to the UK economy.

We are profoundly grateful for the investment that has occurred in the past few years. It was promised for many years, but not delivered. We will soon have a direct line between Felixstowe and Nuneaton, the constituency of my hon. Friend the Member for Nuneaton (Mr Jones). Thereafter, I hope we will have a direct line from Nuneaton to Coventry. I hope—the Minister will speak on this later—that there will be a new bypass loop north of the Minister’s constituency of Chelmsford, which would release capacity and improve performance between London and Norwich. All of these plans, in addition to Ely North junction, have been long promised and long talked about. They are at last being delivered, and for that we are very grateful. However, we need new trains on the new track; not now, not immediately or in the next few years, but within the new franchise that will be set in 2016. We need the new trains that have been provided to the rest of the country and have been denied to us. Whenever the rest of the country is finished with a new train, it is passed on to East Anglia. That is no longer good enough.

--- Later in debate ---

[Mr Kevan Jones]

Does my hon. Friend agree that increasing congestion on the roads is one reason rail usage has gone up, not the great privatisation, which is what the hon. Member for Ipswich (Ben Gummer) thinks is the reason?

[Kelvin Hopkins]

My hon. Friend is absolutely right. We have seen people travelling longer distances to work and growth in the economy, particularly in London and the south-east, leading to much more commuting from longer distances to take advantage of lower house prices further from London, and so on. The amount of travelling that people need to do has increased enormously. The only way they can do it is by rail. I speak as someone who is sometimes asked by people, “How long does it take you to drive to London?”, to which I say, “I don’t know and I’ve never done it”—why would I, from Luton to London every day? That is my view of rail. I have been a passionate supporter of railways for a long time.

However, since privatisation we have seen a surge in costs, not just on the operating side, but on maintenance and track renewal. Time and again when Labour was in office, I raised with Transport Secretaries the fact that the costs of maintenance and track renewal had gone up by four or even five times since privatisation. The reason was largely to do with the move towards more contracting and away from direct works. That contracting involved lots of lawyers and layer upon layer of project management, all of which meant bureaucratic cost, which is still the situation now. Indeed, after some time maintenance was brought back in-house. The problem was that the bad habits established while it was contracted out continued and the same people who operated in the contracted-out version carried on doing the work in-house, so there was not much difference. We have to look back to how things operated in the days of BR, when they were done much more efficiently.

Direct employment of engineers is crucial in that. Rather than having project managers running schemes, with layer after layer of project management, and engineers employed as consultants, we should have engineers directly employed by Network Rail and running schemes from the top, not being brought in as expensive consultants.

--- Later in debate ---

[Mr Kevan Jones (North Durham) (Lab)]

I thank my hon. Friend the Member for Liverpool, Riverside (Mrs Ellman) for her contribution, and for the work she does as Chair of the Transport Committee not only on rail but on all transport matters. As we have heard, passenger numbers are growing and the amount of freight on our railways has increased, and it is important to bear that in mind when talking about the future structure of railways in the UK. The argument made by the hon. Member for Ipswich (Ben Gummer) that those increased numbers were somehow down to the fact that John Major got privatisation so right stretches his ideological point a little far. As my hon. Friend the Member for Luton North (Kelvin Hopkins) said, in recent years the increase in car ownership and congestion mean that many journeys cannot be made by road within a sensible time, and—quite rightly—people are using the railways.

An efficient and well structured rail system for the UK is not only important to provide the transport links we rely on for individual travel and freight; it is also vital for our economy, especially in regions such as the north-east of England. That is why investment in our railway system is so vital. We have heard a lot of talk over the past few weeks about the capital investment projects outlined by the Government, but over the next two years we will actually see a reduction in the transport budget of some £300 million. A lot of the investment projects that have been outlined are jam tomorrow, or even jam a very long way into the future. Capital investment in our railways now would not only improve the situation in the ways outlined by my hon. Friend the Member for Luton North, it would stimulate the economy. Such investment would not be wasted; it would boost the economy of the United Kingdom and it would certainly improve the economies of regions such as the north-east of England.

We had a debate on High Speed 2 last week. When I opened the Daily Mail this morning, I found myself in a rather difficult position, because I found myself agreeing with Lord Mandelson. That has to be a first, although I was not sure that I could believe what I was reading. Some of the points he raised were perfectly legitimate, however. The investment in HS2 is going to be enormous and, I have to say, regions such as the north-east will see very little benefit, even when, in the longer term, the high-speed route reaches Newcastle or beyond.

There has been a silly argument about high-speed rail being an alternative to regional air transport in this country. I do not agree with that; I believe that the two can compete alongside each other, as the hon. Member for Ipswich said earlier. For someone travelling from the north-east to Bristol, for example, flying is a better option than taking what is at the moment a long train journey. I do not think that the investment in high-speed rail will produce greatly reduced journey times to Birmingham and beyond. I also fear that it could sap scarce capital investment from the existing rail network.

We have to thank the Victorians for many things, and our existing rail network is one of them. It was a good example of their forward thinking. I accept that, under nationalisation, a number of Governments starved the network of investment, and that that led to some of the problems that we now face. However, that should not take away from the achievements of British Rail, including the introduction of the high-speed InterCity 125 service. That was so far-sighted that the service is still running today.

As my hon. Friend the Member for Luton North has said, we could achieve some quick and relatively inexpensive changes to the north-east main line for a fraction of the cost of HS2. Those changes would have a dramatic effect on journey times and, as he said, they would achieve a modal shift as we moved freight off the roads and on to the railways. Before we embark on the full investment in HS2, those proposals need to be looked at seriously. They are doable and relatively cheap, and they would benefit many regions of this country, not 20 or 30 years in the future but now.

[Kelvin Hopkins]

I agree with everything my hon. Friend has said—not just the compliments he has paid me but the earlier part of his speech, with which I strongly agreed. The outside estimate for the GB Freight Route scheme is £6 billion, which is a tiny fraction of what is being proposed for HS2.

[Mr Jones]

My hon. Friend makes a very good point. We also need to consider the multiplier effect of such a scheme, and the economic benefits to regions such as the north-east. There would be benefits in reduced journey times, and in the increased amount of freight on the railways. The climate change cost would also be reduced as we got freight off the roads, and the scheme could create regional expansion in areas such as County Durham.

[Guy Opperman (Hexham) (Con)]

I am following the hon. Gentleman’s argument with interest, but would he not agree, given the funding for the northern hub, the improvements to northern rail services and the totemic importance of HS2, that there is now a strategic shift, supported by those on both Front Benches, in favour of high-speed rail coming to the north-east? That must surely be a very good thing.

[Mr Jones]

I fear that we will have exactly what we experienced in the early days of the channel tunnel, when trains travelled at high speed through northern France and then came to a slow stop at the other end, crawling into Waterloo. The idea that someone would travel to Birmingham or Manchester by high-speed rail and then continue the journey on the current CrossCountry network is ridiculous.

The hon. Gentleman, representing a north-east constituency as he does, will be well aware that travelling to Birmingham, for example, is very difficult at the best of times. Even if journeys to Birmingham and Manchester were speeded up marginally, travelling to the eventual destination could take a further two hours. If the hon. Gentleman has ever travelled from Durham to Manchester, he will know that it takes about two hours, and sometimes involves changing trains at York. As my hon. Friend the Member for Luton North has suggested, the investment that is being proposed could reduce those journey times now, at a fraction of the cost of HS2.

I hope that I do not sound too much like the little boy who pointed out that the emperor had no clothes on, but I have seen a great many projects such as this, and it is clear to me that the Government have become starry-eyed about HS2. In the last Parliament, Lord Adonis became starry-eyed in the same way, saying that this was the big idea that would solve the problems of the United Kingdom’s railway network. I am sorry, but I do not agree.

[Guy Opperman]

Both the hon. Gentleman and I contributed to Lord Adonis’s review of the north-east for the North East local enterprise partnership. Consideration of HS2, the northern hub development and an increase in connectivity between the various regions of the north-east formed a pivotal part of that review. I respectfully suggest that the lessons that we discussed and apparently learnt at that time seem to have been forgotten by the hon. Gentleman, given the speech that he is delivering now.

[Mr Jones]

The hon. Gentleman may have had the privilege of contributing to Lord Adonis’s report, but I was never even asked for my opinion. I think that many things in that report are complete nonsense, and that it has been given a status in the north-east far beyond its content. What my hon. Friend the Member for Luton North has proposed would increase connectivity in the north-east at a far lower cost than HS2, and would, I believe, be of more benefit to the north-east.

It interests me greatly that the hon. Member for Hexham is now enthralled by Lord Adonis’s report and believes that it is the answer to the problems of the north-east’s economy. I am afraid that I do not share his view, and I think that if he talks to people in business and to his parliamentary colleagues, he will find that many of them do not share it either. The debate about the investment in HS2 needs to take place, and I hope that it is not too late for some of the decisions that have been made to be reconsidered.

[Kelvin Hopkins]

One assumes that the hon. Member for Hexham (Guy Opperman) would travel to Newcastle on HS2, and would then take a slower train from Newcastle to Hexham. In fact, in 1990 a train on a British Rail test run travelled to Newcastle in the same time that it would take on HS2.

[Mr Jones]

Exactly—and if we are talking about the scarcity of capital, we should consider the upgrading of links to Hexham. In my constituency, some existing lines could be opened up. The Leamside line, for instance, could take freight off the main routes.

Let me now say something about East Coast. My hon. Friend the Member for Blackley and Broughton (Graham Stringer), who is not in the Chamber at present, wondered why the Government were in such a rush to return to privatisation. As he said, the line is contributing to the Exchequer, and is performing well in terms of punctuality and the quality of the service that it provides. Investment in rolling stock is clearly needed. However, the staff have worked hard to ensure the success of the line since renationalisation. They should be given credit for that, and for the tremendous loyalty that they have generated among the travelling public.

[Iain Stewart]

May I draw the hon. Gentleman’s attention to one of the recommendations of Richard Brown’s review of the franchising system after the west coast main line issue? He said that

“it is very important that the franchising programme is restarted as soon as possible.”

I would suggest that that is a reason for bringing forward the franchising process for the east coast main line.

[Mr Jones]

That may well be the case, but is it going to be good for the taxpayer? We currently have a very successful operator contributing to the taxpayer, so why automatically go down this route, unless there is an ideological reason of wanting to ensure that the operator moves from the public sector back into the private sector, which is clearly the position of the hon. Member for Ipswich (Ben Gummer)?

[Iain Stewart]

One of the other conclusions of the Brown review was that the pause in the franchising programme was having knock-on effects in the railway procurement industry, and that delay could interrupt the important investment in long-term projects. That is one of the reasons Brown concluded that the franchising timetable should be restarted as soon as possible.

[Mr Jones]

I am going to come on to the issue of franchising in a moment, but the hon. Gentleman’s point is based on the assumption that the Government would not invest in the rolling stock now for a nationalised company. The idea that the new rolling stock will be provided only by a private provider is not a good enough reason for saying that we should not at least examine the reasons for keeping the company in public ownership.

This is not just about the rail network itself; it raises issues around rolling stock and guaranteeing jobs in this country in providing new rolling stock, including through new investment in the north-east by Hitachi, which is very welcome and is locating a new factory at Newton Aycliffe.

How local people can influence the franchising process is a key issue. My hon. Friend the Member for Liverpool, Riverside (Mrs Ellman) raised the important point of the transparency of the process, and there is a constituency issue that I have been campaigning on for a number of years now: the stretch of the east coast main line that goes through my North Durham constituency from Chester-le-Street into Newcastle. Chester-le-Street has now increasingly become a commuter town for Tyneside and Teesside. It takes less than 15 minutes to travel from Chester-le-Street into Newcastle, and if it was in south-east England it would therefore be seen as an obvious place to commute to work from. In the mornings and early evenings there is an hourly, and sometimes a half-hourly, service, but throughout the rest of the day the timetable is intermittent, and later in the evening when people want to travel into Newcastle for entertainment there is a limited service.

I pay tribute to the campaign of the stationmaster at Chester-le-Street, Alex Nelson. He has been arguing for an hourly stopping service from Chester-le-Street to Newcastle. We have met Northern Rail to make the case for that, and the point it keeps making to us is that the franchising model puts an emphasis on inter-city routes, rather than stopping services. It is clear from the public meetings I have had about this issue over the past few years that there is huge interest in Chester-le-Street to ensure it gets an hourly service into Newcastle not only at peak times, but throughout the day and at weekends. That would serve to reduce the number of cars travelling to Newcastle and alleviate congestion. We need to think about how local people can have a voice in determining issues such as the train service from Chester-le-Street, which is not only important for local people, but which benefits the economy of Tyneside. A study has recently been undertaken on widening the western bypass, as we need to get the cars off that. One of the easiest ways of doing so is to invest in the likes of an hourly stopping service from Chester-le-Street.

Finally, I wish to discuss the wider transport picture in the north-east. I congratulate the seven local authorities in the north-east which are coming together in a strategic partnership to examine economic development. Not only that, but one of their key objectives is to look at a joined-up transport policy. This debate is about rail, but we cannot look at that in isolation; we need to consider how it joins up to other public transport networks, be it the buses or the Metro system in Tyneside. It also needs to be as easy as possible for people to transfer from one mode of transport to another. One thing I would like the authorities to back is some kind of Oyster card, whereby people could travel using different modes of transport in the north-eastern region. That would make travel a lot easier, and the new authority may well be able to push forward with such things. The investment we need in our rail network is not only vital for the purpose of people travelling; it is vital to the future economic benefit of this country and certainly of regions such as the north-east.

[Several hon. Members]

rose—

Transport and the Economy

Kevan Jones Excerpts

Tuesday 28th February 2012 Commons Chamber

[Angela Smith (Penistone and Stocksbridge) (Lab)]

I start my short contribution by paying tribute to the Chair of the Select Committee, my hon. Friend the Member for Liverpool, Riverside (Mrs Ellman), who has shown astounding leadership for some time. I am particularly proud that this report is being debated today, as I was a member of the Select Committee when we first met after the election. Indeed, I was one of those calling for this inquiry, so I am particularly pleased to be able to contribute to today’s debate.

The report on “Transport and the economy” is an important one. We have heard broad statements and warm words from the Government for some time about transport and its role in supporting economic growth, but there is no sense of how their decisions on transport fit into a strategy, and no clear sense of how any particular scheme announced by the Government will fit into a strategy for economic growth. Nor is it clear how the Government’s decisions will help to deliver their stated intention of rebalancing the economy. I therefore welcome the report’s recommendation that a White Paper on transport and the economy be produced exactly to clarify that point. The report is important, too, because it makes clear that investment in transport infrastructure needs to be linked to plans for economic development. HS2 provides a good example.

The argument for HS2 is partly about capacity, so it relates strongly to the role cited in the Eddington report for transport investment to reduce congestion, thereby removing barriers to economic growth. HS2 is also about bringing economies across the country closer together, improving the dynamics of those relationships—in other words, the agglomeration benefit.

[Mr Kevan Jones (North Durham) (Lab)]

Does my hon. Friend agree that unless some time line is put on extension of HS2 further north, there will be considerable cynicism in areas like the north-east that a great deal of investment will be made that will have very little economic impact on such regions?

[Angela Smith]

I wholly concur. In fact, if we are to maximise the agglomeration benefits of HS2, I would argue that the economies—from the far north to London and the south—that are linked by the HS2 line must have clear strategies in place for economic development in order that the transport investment represented by high-speed rail can perform to its full potential.