Rail Manufacturing: Job Losses

Debate between Lilian Greenwood and Huw Merriman

Tuesday 16th April 2024 Commons Chamber

[Huw Merriman]

That is correct—good. I am glad I have got that on the record.

My hon. Friend the Member for Darlington (Peter Gibson) is absolutely right. This matter is complex and challenging, but I can tell you, Mr Speaker, and the House that the Secretary of State is working at full pelt on this matter with Alstom. I am hopeful that a solution will be found that will demonstrate all of that hard work.

[Lilian Greenwood (Nottingham South) (Lab)]

Derby’s Litchurch Lane is unique—the only site in the UK that designs, develops, builds and tests trains. As has already been acknowledged, the Alstom factory is a very significant employer, but it also supports thousands of good supply-chain jobs, particularly in Nottinghamshire and Derbyshire. Frankly, this Government will never be forgiven if that factory is allowed to close due to an entirely avoidable gap in orders. The Minister says that this matter is complex, but my question is simple: when does the Department for Transport intend to issue the invitations to tender for the promised new train fleets for Chiltern, Northern and Southeastern?

[Huw Merriman]

The answer is over the course of this year and next year for all of the train manufacturers that the hon. Lady has mentioned. I well remember the visit that both she and I made to the Alstom site with the Transport Committee. As she rightly says, it is a fantastic site, which is why we are working to find a solution. I am certainly encouraged by the conversations that have taken place. We know that everyone wants to find that solution—the Government certainly do—but the hon. Lady will know from all her work on the Transport Committee that legal challenges have to be dealt with in the correct manner. This matter is very sensitive, and it is market sensitive as well, so finding a way through which provides certainty and does not get unpicked is absolutely the right thing for us to do, and that is what we are doing right now.

Oral Answers to Questions

Debate between Lilian Greenwood and Huw Merriman

Thursday 21st March 2024 Commons Chamber

[Huw Merriman]

I thank my hon. Friend, who is an absolute champion of that project, and he makes his point clear. Upgrades made in the Gatwick area are already delivering significant improvements to the Brighton main line, and the industry continually reviews how best to respond to changes in demand. I understand that my hon. Friend has been in discussions with the operator on the options for increasing capacity on busy weekend services between Carshalton and London Victoria, and that Govia Thameslink Railway will shortly respond to him directly. I will continue to work with him on the enhancement project that he champions.

[Lilian Greenwood (Nottingham South) (Lab)]

The leader of Nottinghamshire County Council, who has a nice side hustle as the hon. Member for Mansfield (Ben Bradley), once said:

“The full delivery of HS2’s Eastern Leg is what the East Midlands needs to support and create highly skilled jobs, link communities to opportunities and decarbonise our transport network.”

As he failed to persuade the Prime Minister, who cancelled that vital investment in our region’s rail services, can the Minister tell me how we will now deliver the transformative change to our connectivity, sustainability, job creation, productivity and social mobility that HS2 promised? Filling a few potholes will not cut it.

[Huw Merriman]

I certainly look forward to the day when my hon. Friend the Member for Mansfield (Ben Bradley) is also an excellent East Midlands Mayor, and we are devolving more powers to the east midlands to help him with that task. The hon. Member for Nottingham South (Lilian Greenwood) references HS2 moneys, from which more than a £1 billion will be allocated to the Mayor of the East Midlands to spend on the transport projects that he and, indeed, the hon. Lady may want. That allows us to devolve more projects to the local area, and we have been absolutely clear that all the moneys that have been saved as a result of the HS2 cancellation will be reinvested primarily in the north and the midlands.

HS2: Revised Timetable and Budget

Debate between Lilian Greenwood and Huw Merriman

Tuesday 14th March 2023 Commons Chamber

[Huw Merriman]

I have the greatest sympathy for my hon. Friend’s constituents. They have been ably represented by him, because he has spoken to me on a number of occasions. I have already set out the steps that will be taken with regard to the decision on HS2 trains to Leeds. That will remain the case, but I am already looking into the case for his constituents. A 30% to 38% increase in rents seems like an incredibly high jump in one go. I need to find out the background to that, but he will be meeting me again, so I can give him the detail that he can then give back to his constituents. I will do everything I can to minimise the impact.

[Lilian Greenwood (Nottingham South) (Lab)]

I was 45 when the Tory-led Government gave HS2 the go ahead. Since then, as the Minister knows, it has been repeatedly chopped, changed and delayed. I will be 57 next week. How old will I be when it gets to Nottingham?

Rail Strikes

Debate between Lilian Greenwood and Huw Merriman

Wednesday 15th June 2022 Commons Chamber

[Huw Merriman]

Following your lead, Madam Deputy Speaker, I will just give one example: cracks to rail. Technology now allows a sensor camera underneath a train to click 70,000 images per minute. That replaces an individual’s eyes or teams of men tracking. I would maintain that that not only makes it more likely that the cracks will be spotted, but means it is not necessary to put people on the asset, which is dangerous to them and means closures that we do not need when the train is operating.

This is not rocket science related specifically to the rail industry. Every single industry innovates, moves forward and develops. This Chamber may seem a funny place to stand and say that working practices are rooted in the past, when this very place is all about that, but the way we speak and operate here does not necessarily impact the lives or enhance the passenger services that I believe we could do in rail, if the industry as a whole, working with the workforce, developed and innovated in the manner I advocate.

I come back to the point about collaboratively working together. It is essential. I saw to my cost, as an MP in the region that includes Southern Railway, damaging strikes that went on for far too long. Passengers could not get to work; it had a huge impact on the economic community and on the workforce. The crazy thing about that strike, which was about who opened the doors, the guard or the driver, was that it ended up being settled with a pay rise for drivers. Ironically, that was on the ASLEF side; the RMT side, which started this, did not get that pay rise. The ASLEF drivers got a pay rise of 25% over three years.

I would say to those on the Front Bench: “Of course take leadership, make that noise, but you have to ensure that you see this through.” There is nothing worse than starting this action, causing industrial relations to decline, and then finding out that we withdraw; it would be better not to do it at all.

[Lilian Greenwood]

rose—

[Huw Merriman]

I will give way one more time because the hon. Lady is my predecessor on the Select Committee.

--- Later in debate ---

[Lilian Greenwood]

The hon. Gentleman knows that I have a great deal of respect for the work that he does, but what conclusion does he draw from the fact that there are no rail strikes going ahead next week in Wales, where there has been an active, responsible Government seeking to bring people together and resolve issues? Is it not precisely the point that active government can get the two sides together and attempt to resolve the issues?

[Huw Merriman]

I certainly take that point, but just I heard from another member of our Committee that Network Rail is still striking in Wales, and when it is about Network Rail members of the RMT, that tends to shut the railway down. In my example of when the RMT was striking in the Southern region, that did not shut the system down because that only happened when ASLEF drivers were involved. We will both check the record on that, no doubt, but that is how I am informed.

Aviation Sector

Debate between Lilian Greenwood and Huw Merriman

Thursday 10th September 2020 Commons Chamber

[Huw Merriman]

I thank the hon. Gentleman, as ever, for his contribution. He is absolutely right. Perhaps this is where I should put in my asks with the new Minister, who I absolutely welcome to the Dispatch Box. Yesterday was his first day in front of the Transport Committee and today is his first day at the Dispatch Box. It has been a busy week for him already, with more to come.

[Lilian Greenwood (Nottingham South) (Lab)]

rose—

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

rose—

[Huw Merriman]

Before I take any further interventions I will make a little more progress.

The airports have already lost £2 billion just in the first few months, and they expect to lose another £4 billion as well. I would like to put on record my thanks to this Government for the £330 billion injection into businesses to keep them going. That has meant that 9 million people have been able to stay in employment through the furlough scheme. But of course I am going to stand here and ask for more, as is always the annoying case for Ministers with Back Benchers.

[Lilian Greenwood]

rose—

[Huw Merriman]

I will take some more interventions in a moment.

I would like the Government to look at the aviation sector specifically. I say this because the Government—and I do understand this—have brought in quarantine to keep us healthy and safe in travelling to these countries. That is the right thing to do—a nuance-based approach to ensure that where it is safe to travel we can do so on air bridges and not quarantine for 14 days. None the less, that intervention does have an impact on aviation, and that justifies more Government support. In addition, testing is happening in other parts of the world. The Government have not yet brought testing forward. I very much hope that during the quarantine period we can allow people to take a test and then come off quarantine. That may well be later in the process, but I would like to see that measure.

Those interventions from Government, which the aviation sector would say intervene on its ability to keep going, justify a sector-specific deal. I would like an extension of the furlough scheme for aviation. I would like a complete cut of air passenger duty for a period, which EasyJet says would allow 60% of national flights to continue. I would like a business rate cessation to be brought forward as the Scottish Government have done. I would like to see those measures from the Government in return for our continued approach on quarantine and testing.

[Huw Merriman]

I thank my hon. Friend for that point. As she and I know, Gatwick is the jewel in our crown in the south-east. Many of our constituents rely on it for good, well-paid jobs, but it is looking at staff reductions of 25%, which worries me greatly.

[Lilian Greenwood]

rose—

[Huw Merriman]

I will, of course, take an intervention from my hon. Friend—the hon. Lady who is a previous Chair of the Transport Committee.

[Lilian Greenwood]

I hope that we are also hon. Friends. The hon. Gentleman is speaking about the intervention and support required from the Government. A few moments ago we heard about the report from Climate Assembly UK that was launched today, which includes bold recommendations about the future of aviation and our route to net zero 2050. Does he agree that taxpayer support for the sector should be conditional on action to both protect workers and to cut emissions, as we transition to a more sustainable future for the aviation sector?

[Huw Merriman]

I thank my predecessor for all the amazing work she did on the Transport Committee, as well as today with the climate change report. She is absolutely right. When the Government bring out their sector renewal programme for aviation—I hope we will hear more from the Minister on that—I hope we will see incentives for greening aviation. That must be the future.

Rail Infrastructure Investment

Debate between Lilian Greenwood and Huw Merriman

Thursday 17th January 2019 Westminster Hall

[Lilian Greenwood]

My hon. Friend makes an important point, which I will come to in due course. He is a long-standing, experienced and expert member of the Transport Committee, and I am delighted that he is here this afternoon.

The DFT also argues that it is difficult to break down regional spending accurately, saying that where expenditure on the railway takes place is not always an accurate reflection of where the benefits are felt. The Department also emphasises the difficulty of analysing investment annually, or even five-yearly, given that railway assets typically have a lifespan of 25 to 40 years, pointing out that there was inevitably

“a cyclical nature to replacing them that does not lend itself to an even split of funding across all regions within every 5 year control period.”

Of course, there is merit in those arguments, but I simply ask the Minister, when was there a time when investment in the north exceeded investment in the south?

While the Government’s commitment to rebalancing the economy is welcome, it is clear from past experience that, as my hon. Friend the Member for Blackley and Broughton (Graham Stringer) said, current methods for making investment decisions make it much easier for highly populated, economically successful places to prove the case for schemes in their area, because the model has a bias towards schemes that exhibit strong levels of potential demand and/or high potential to relieve existing transport congestion. Witnesses to the inquiry told us that this approach inevitably drew more investment to London and unless the system could be altered to take greater account of wider economic benefits, the process would be inexorable.

Maria Machancoses, the director of Midlands Connect, told us that

“figures on the disparity of investment, no matter which formula you look at—whether by the DFT or the Treasury—they all say that outside London it is just not working.”

Her view was that this should be the starting point from which to “move forward.” However, in their response to our report, the Government did not accept the suggestion that their scheme appraisal methods did not provide a fair share of investment in rail across the UK’s regions. This completely fails to acknowledge the overwhelming feeling across the country that investment in rail is unfairly concentrated in a few small areas.

While there are undeniable complexities in accurately breaking down regional spending and identifying where the benefits of investment are felt, the Government must recognise the concerns that have been raised about the regional disparities of investment in our rail network and take action to address them. It is hard to believe that the Department will do so if it does not accept that there is a problem in the first place.

The DFT has published a rebalancing toolkit, to be used as part of the strategic assessment of future investment programmes. This was welcomed in principle by our witnesses. However, when we asked the then Rail Minister, the hon. Member for Blackpool North and Cleveleys (Paul Maynard), for examples of the toolkit’s influence on DFT’s transport investment decisions, he could not provide a single specific example. He told us that it was “relatively early days” for the approach. Our witnesses said that the Government needed to prove that what the rebalancing toolkit is meant to achieve will actually take place. I ask the Minister, over a year after the toolkit was introduced, how has it influenced the DFT’s investment decisions?

In our report, we also called on the Government to be more specific about the economic rebalancing effects they intend to achieve. We call on them to tell the regions in need of regeneration how they can prove their cases and secure investment. We argued that people in the north-east and south-west, regions that have experienced relative under-investment in recent periods, must have a clear sense of what the Government are trying to achieve in order to be able to judge their success.

We also recommended that use of the rebalancing toolkit be mandatory and that the Department worked with Her Majesty’s Treasury to explore how economic rebalancing can be made an intrinsic part of appraising transport schemes. That would put rebalancing at the heart of investment decisions, rather than it merely being an add-on. In response, the Government have told us that it would be impractical to make use of the toolkit mandatory. Why has the Department developed a toolkit that is impractical to use?

Let me turn to rail electrification. Under successive Governments since 2009, the Department has made a compelling case for widespread electrification, moving from diesel to electric traction, particularly on heavily used parts of the network, which would reduce journey times and facilitate lighter, more efficient trains, reducing long-term costs, improving environmental sustainability and enhancing capacity. The Government’s decision to cancel electrification schemes in south Wales, the midlands and the Lake district were a huge disappointment for people who had been promised improvements to their network. Following the cancellation of these schemes, there are also serious questions about the Government’s support for future electrification of the network.

It is clear that the plans for electrification were over-ambitious and suffered from inadequate planning and budgeting. The schemes were hampered by an unclear definition of responsibilities between the DFT, Network Rail and the Office of Rail and Road, and disappointment at their cancellation was compounded by poor communication by the Department for Transport.

Although the decision to cancel the midland main line and the lakes line schemes was taken in March 2017, it was not announced until July, on the day the House rose for its summer recess, limiting opportunities for scrutiny of the decision. The Government also presented the decision not to electrify these lines as a positive story about passenger benefits being delivered in other ways. The announcement, unsurprisingly, was met with scepticism by those who saw it as a pragmatic, cost-based response to overruns. The National Audit Office agreed with those sceptics, and concluded:

“The Department decided to cancel projects in 2017 because Network Rail’s 2014-2019 investment portfolio was no longer affordable.”

Passengers on the midland main line and Great Western main line should eventually see some improvements in capacity and journey time from other enhancements in control period 5, but the way that enhancement to these lines has been handled is far from ideal and has done nothing to create confidence in the Government’s approach to rail improvements.

[Huw Merriman (Bexhill and Battle) (Con)]

I congratulate the hon. Lady, my friend, the Chair of the Select Committee, on securing the debate. She took us through our Select Committee report and chaired us so well. The Government rightly place great faith in the future in hybrid trains and bi-mode, but does she share my concern that we are in a bit of a hiatus? We either have electrification or technology that is not quite there. Many communities—mine in particular, with the extension of HS1—are faced with uncertainty as to whether they will ever get a better service.

[Lilian Greenwood]

The hon. Gentleman is a very valued member of the Select Committee. While new traction, hydrogen and battery potentially have a place on our railway, it is clear that they are not sufficiently developed to be a proper replacement for electrification. There is some doubt about whether they will ever be a suitable replacement for electric trains, particularly on inter-city journeys operating at higher speeds. He is right to raise concerns about the time that might be taken for parts of the country to see improvements to their services, particularly if there is a continued aspiration to use bi-mode technology. While that can provide some benefits, it undoubtedly also has a significant impact on operating costs. When passengers are very concerned about their fares raising, building in long-term costs seems a wise approach.

While it is now clear that the electrification schemes that had been planned were undeliverable, the Railway Industry Association and others were convinced that, for now, electrification remained the optimal solution to train traction. The case for electrification is particularly strong on heavily used routes, balancing significant benefits to passengers with the wider environmental benefits and long-term cost efficiency. Our report called for electrification to be delivered through a long-term rolling programme in which the Department, Network Rail and the wider industry learn the lessons of earlier schemes and strive to reduce costs. Do not throw the baby out with the bath water.

A key driver of Government investment in the rail network is their commitment to reduce carbon emissions. In February 2018, the Government called on the industry to produce a vision for how it will decarbonise with an initial response due in September last year. The Government response to our report confirmed that an industry taskforce, led by Malcolm Brown, is taking this forward. Have the Government received this taskforce’s report on how to decarbonise the rail system? If so, what does it say and what are the Government doing with it? David Clarke, technical director of the Railway Industry Association, has said that to achieve the Government’s aim of decarbonising UK railways by 2040,

“electrification must be one of the prime options for intensively used routes”.

The Government accepted our recommendation that it should engage with RIA’s electrification cost challenge initiative. The Department committed to producing a report on cost-effective electrification by this summer, but has said that it will remain agnostic about the best means of securing rail enhancement and that it does not expect proposals for new enhancement to begin with a predefined solution such as electrification. I am afraid it is clear that the Government have no plans for the future electrification of the railways.

I ask the Minister to update us on the Government’s work to produce a report with the industry on cost-effective electrification. When we conducted our inquiry, we heard that there was considerable interest in third-party-funded electrification schemes on the midland main line. We recommended that those proposals should be fully considered as an alternative to the proposed bi-mode solution.

The Government accepted our recommendation and said that they would fully consider

“Any proposals made to government or Network Rail about private sector solutions on the Midland Mainline that could provide benefits in addition to the passenger benefits that are being secured by the Government.”

What discussions have the Government had with third parties about proposals for electrifying the midland main line, and how will the improvements for passengers of the enhancements that will be going ahead compare with the improvements that would be delivered by electrification?

Some hon. Members present represent areas of the north covered by the transpennine route. The upgrade of that route is expected to include some electrification, but those enhancements have been considerably reduced since the then Chancellor announced in 2016 that the Government were

“giving the green light to High Speed 3 between Manchester and Leeds”.—[Official Report, 16 March 2016; Vol. 607, c. 961.]

There are serious concerns that the upgrade will not be fit for purpose for freight trains, and that because only part of the line will be electrified, the route will need bi-mode trains, which will build in higher operating costs for years to come. Are the current proposals for the transpennine route upgrade in line with the advice from Transport for the North? If not, why not? I note the letter to the Secretary of State for Transport from the operator of Humber, Mersey and Tees ports on 7 January, which says:

“It is of increasing concern that the Department for Transport and Network Rail are undervaluing our industry in the North and undermining the economic goal and objectives of the Northern Powerhouse; it will only make the productivity gap between the North and South of England even greater and devalues further the role of Transport for the North.”

It is concerning when the industry feels that the transpennine route upgrade, as it is currently considered, will lead

“to an utter dependence upon the M62 for Transpennine freight traffic for at least another generation.”

We have talked about some of the problems experienced as a result of planned railway improvements in the past five years, which have triggered successive reviews of the planning and delivery of enhancements and led to a substantial change in the way future investment in the railways will be considered and delivered. The next five-year control period will focus on operations, maintenance and renewals, the volume of which will increase substantially, not least because of the number of renewals that have been postponed from the current control period.

Following those postponements, the greater focus on maintenance and renewals in control period 6, which starts in April, is necessary and welcome, but there are long-standing concerns in the industry that investment in renewals has been lumpy, stop-start and boom and bust. We have heard that the level of uncertainty about upcoming spending could have knock-on effects on the wider industry’s confidence to invest in its workforce, skills and innovation.

In our report, we called on the Government to work with Network Rail, the regulator and the industry to look at the ways in which investment could be smoothed out from the start of control period 6, throughout that period and beyond. The Government accepted that recommendation, so I ask the Minister, how has the Department worked with the industry to smooth out investment for the upcoming control period?

Instead of forming part of the five-year control periods for Network Rail investment, future enhancements of the rail network are now subject to a separate process. The new rail network enhancements pipeline is intended to support a continuous planning approach and move away from the overly rigid five-year cycle that was linked to railway control periods.

The Government have signalled that they expect more railway enhancements to be market-led proposals brought forward by third parties. We heard that there was likely to be interest from third parties in bringing forward such proposals, but it was not clear to us that Network Rail had the structures or culture in place to support such third parties to engage and participate in the planning, delivery, funding or financing of the railway.