Oral Answers to Questions Debate

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Department: Department for Transport

Oral Answers to Questions

Lord Hammond of Runnymede Excerpts
Thursday 10th March 2011

(13 years, 1 month ago)

Commons Chamber
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Richard Graham Portrait Richard Graham (Gloucester) (Con)
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1. What recent representations he has received on the sustainability criteria in the renewable energy directive related to transport fuels; and if he will make a statement.

Lord Hammond of Runnymede Portrait The Secretary of State for Transport (Mr Philip Hammond)
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I have received recent representations on the renewable energy directive biofuels sustainability criteria from a number of non-governmental organisations, including the Royal Society for the Protection of Birds, Greenpeace and Friends of the Earth. We share some of their concerns regarding the sustainability of some biofuels. For that reason, we propose to take a cautious approach, as set out in the consultation we have launched today on proposals to implement the transport elements of the directive and the associated fuel quality directive.

Richard Graham Portrait Richard Graham
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I am grateful to the Secretary of State for his answer. This morning I spoke with the owner of the 160-year-old haulage company, Joseph Rice, in my constituency of Gloucester, which is going into receivership. He believes that others might follow before long. Does the Secretary of State agree that the Government should do what they can to help the sector, whether through incentives on biofuel or by reviewing things such as vehicle excise duty and road charges?

Lord Hammond of Runnymede Portrait Mr Hammond
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As my hon. Friend will know, matters relating to vehicle excise duty are for my right hon. Friend the Chancellor. We believe that the future of the road freight sector depends on being able to decarbonise it, and at the moment the only viable option for decarbonisation is biofuel. Therefore, we believe that it is important that we prioritise available sustainable feedstocks for biofuels for use in sectors where no alternative viable options are available.

Kerry McCarthy Portrait Kerry McCarthy (Bristol East) (Lab)
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I welcome the fact that the Secretary of State has said that there will be a consultation, because there was concern that we would rush towards implementation of the directive without people being able to discuss the related issues—but I am slightly concerned that he says that there are no sustainable alternatives to biofuels. As part of the consultation, will he seek advice on other suggestions being made by people working in this field so that we can move away from using biofuels and the subsequent impact on food crops and deforestation?

Lord Hammond of Runnymede Portrait Mr Hammond
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Our concerns are twofold: our approach is, of course, technology-neutral, but if alternative and sustainable solutions are suggested, we will be happy to look at them, and our focus must be on ensuring that the European Union, in its enthusiasm for biofuels, does not lose sight of the negative carbon impacts that some approaches to biofuel can have. We want to look at the whole lifecycle carbon effects of biofuel use, particularly the indirect land use effects.

Martin Horwood Portrait Martin Horwood (Cheltenham) (LD)
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I am glad that the Secretary of State has mentioned indirect land use impacts, and I welcome the statement made this morning by the Under-Secretary of State for Transport, my hon. Friend the Member for Lewes (Norman Baker), which explicitly highlighted the risks of indirect land use change as a result of imported biofuels. I ask for a joined-up approach to biofuels across Government. What discussion has the Secretary of State or his Department had with other Departments, particularly the Department for Communities and Local Government?

Lord Hammond of Runnymede Portrait Mr Hammond
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We have very regular discussions with my right hon. Friends the Secretaries of State for Energy and Climate Change and for Environment, Food and Rural Affairs.

Mike Freer Portrait Mike Freer (Finchley and Golders Green) (Con)
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2. What recent representations he has received on his proposals for reform of the blue badge scheme.

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Baroness Burt of Solihull Portrait Lorely Burt (Solihull) (LD)
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3. What recent progress he has made on implementation of the high-speed rail link between London and Birmingham; and if he will make a statement.

Lord Hammond of Runnymede Portrait The Secretary of State for Transport (Mr Philip Hammond)
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The Government believe that a national high-speed rail network would promote economic growth and the diversification of the UK economy. On 28 February I launched a major public consultation on the case for such a network and on the proposed route for an initial line. The consultation will run until 29 July, and following that consultation a decision will be taken by the end of this year.

Baroness Burt of Solihull Portrait Lorely Burt
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I am grateful for that answer. We understand from the consultation that some businesses which will benefit from High Speed 2 might be asked to contribute towards the cost. That might be reasonable, but as the national exhibition centre and Birmingham airport will be asked to help with the cost of the proposed interchange station, will the Government be reasonable in giving assurances about west coast main line improvements and regional aviation policy, in order to enable them to achieve the visitor and passenger numbers that they will need?

Lord Hammond of Runnymede Portrait Mr Hammond
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Both Birmingham airport and the national exhibition centre are extremely supportive of the High Speed 2 proposals. The consultation is predicated on the entire line being built with public money, but it also says that we think there will be opportunities for private sector development-led funding of some of the station infrastructure, and that is what we will discuss with private sector partners such as the NEC and Birmingham airport.

Barry Sheerman Portrait Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
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May I urge the Secretary of State to keep his nerve on this matter? I welcome the consultation, and our cities need high-speed links—certainly in Yorkshire and in the northern regions. May I urge him in addition to ignore some of the deniers—they are also climate change deniers—who have had letters published in the newspapers this morning?

Lord Hammond of Runnymede Portrait Mr Hammond
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I am grateful to the hon. Gentleman for that comment. Those who oppose the building of the line have clearly identified themselves and their direct interests in this matter. It is now for those who will stand to benefit the most, particularly in our great northern cities, to voice their support during the consultation period.

Tony Baldry Portrait Tony Baldry (Banbury) (Con)
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Has my right hon. Friend seen the letter today in The Daily Telegraph, signed by, among many, Lord Lawson of Blaby, who many of us felt during his time in the House was an outstanding Conservative Chancellor of the Exchequer?

Lord Hammond of Runnymede Portrait Mr Hammond
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Yes, I have seen it.

John Bercow Portrait Mr Speaker
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We are extremely grateful to the Secretary of State for that pithy reply.

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Robert Halfon Portrait Robert Halfon (Harlow) (Con)
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8. What criteria he proposes to use to determine his Department’s spending on local authority major transport schemes.

Lord Hammond of Runnymede Portrait The Secretary of State for Transport (Mr Philip Hammond)
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We will announce in due course the criteria for allocating the remaining funds to projects in the development pool. It is likely to be done on the basis of an appraisal of value for money, the proportion of non-Department for Transport funding, deliverability, strategic importance, and a consideration of the balance between modes and regions. It remains my objective to develop a system of capital funding allocation to sub-national areas so that in future spending review periods, priorities can be determined locally.

Robert Halfon Portrait Robert Halfon
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Harlow council and Essex county council are highly supportive of a new M11 junction near Harlow, and local housing development could help to pay for it. Will the Secretary of State look at plans for the new junction, given that the cost to the taxpayer could be minimal?

Lord Hammond of Runnymede Portrait Mr Hammond
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That is a matter for consideration in future local authority major scheme application rounds. As I have indicated, I hope that those will be carried out on a much more devolved basis—but I can say to my hon. Friend that any scheme that levers in private money to reduce the cost to the taxpayer, and thus improve the cost-benefit ratio that the taxpayer sees, is likely to have an advantage in any future competition.

Joan Ruddock Portrait Joan Ruddock (Lewisham, Deptford) (Lab)
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In that context, will the Secretary of State consider the proposals for a Surrey Canal Road station in my constituency, on which I made representations to the Government last year? My local authority has put money into the design stage and the local developer, Renewal, is putting up a lot of money to ensure that the station can at least be started. I hope that the Government will support that vital piece of infrastructure.

Lord Hammond of Runnymede Portrait Mr Hammond
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I am happy to look at the matter, to discuss it again with the Mayor of London and to consider the points that the right hon. Lady has raised.

Julian Huppert Portrait Dr Julian Huppert (Cambridge) (LD)
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9. What recent representations he has received on the removal of bus service operators grant from free bus services.

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Andrew Bridgen Portrait Andrew Bridgen (North West Leicestershire) (Con)
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11. What recent progress he has made on plans to electrify the midland main line.

Lord Hammond of Runnymede Portrait The Secretary of State for Transport (Mr Philip Hammond)
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The Government’s policy is to support the progressive electrification of the railway. The Department for Transport will continue to consider the business case for the scheme that my hon. Friend mentions as part of the work to inform decisions in the next railway control period, beginning in 2014.

Andrew Bridgen Portrait Andrew Bridgen
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Does the Secretary of State agree that there would be huge benefits to the east midlands from the electrification of the line? Given the massive economic and housing growth predicted for the east midlands over the next few years, an early timetable for electrification of the line would be very helpful to business and planners.

Lord Hammond of Runnymede Portrait Mr Hammond
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My hon. Friend is right to note that there is a strong case, on the face of it, for the electrification of the midland main line. He will know that there are works currently under way on the line to improve line speeds, and I had the opportunity to view them from the cab of an East Midlands Trains service on Monday. When they are completed at the end of 2013, they will result in the journey time from London to Sheffield being reduced to less than two hours.

Clive Betts Portrait Mr Clive Betts (Sheffield South East) (Lab)
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Does the Secretary of State accept that in the last assessment, the business case for the electrification of the midland main line was just as strong as that for the Great Western line? As he is not prepared at this stage to commit to the electrification of the line in one go, will he re-examine the possibility of introducing the new bi-modal trains on the line? On that basis there could be incremental electrification without the up-front costs coming all at once.

Lord Hammond of Runnymede Portrait Mr Hammond
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I understand the hon. Gentleman’s question, and I am aware of the proposal that East Midlands Trains is examining to introduce bi-modal running on the line. The difference between the midland main line and the Great Western main line is that the midland main line’s future function will be affected by the decision on High Speed 2. It is right that we consider the matter as one for the next control period, in the full light of the decision on HS2 that will be taken later this year.

Jonathan Edwards Portrait Jonathan Edwards (Carmarthen East and Dinefwr) (PC)
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12. What recent representations he has received on the electrification of rail lines between Cardiff and Swansea and west of Swansea.

Lord Hammond of Runnymede Portrait The Secretary of State for Transport (Mr Philip Hammond)
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I have received representations calling for electrification of the Great Western main line to be extended as far west as Swansea. We have looked carefully at the arguments but I regret to tell the hon. Gentleman that there is not, at present, a viable business case for electrification of the main line between Cardiff and Swansea. I have given the House an undertaking that I and my right hon. Friend the Secretary of State for Wales will keep the matter under review.

Jonathan Edwards Portrait Jonathan Edwards
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I regret to inform the Secretary of State that last week’s announcement went down like a lead balloon in the communities in west Wales that I represent. Later in the week, the Business Secretary made a speech saying that investment in high-speed rail and electrification was an example of how the UK Government were going to rebalance the economy. Is the message therefore that as far as the UK Government are concerned, the Welsh economy stops at Cardiff?

Lord Hammond of Runnymede Portrait Mr Hammond
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No, I will tell the hon. Gentleman what the message is. It is that my announcement last week will result in the journey time to Swansea being cut by 20 minutes, to two hours and 39 minutes, delivering to people in Swansea all the time-saving benefits that would be delivered were electrification to progress as far as Swansea. I am sorry to have to tell him this, but if he looks at the facts of the case, the costs to the taxpayer and the benefits to the people of Swansea, he will discover that at the present time our decision is the right one. As I have said, we will keep it under review.

Geoffrey Clifton-Brown Portrait Geoffrey Clifton-Brown (The Cotswolds) (Con)
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I am sorry to return to this subject, but will my right hon. Friend tell the House what feasibility studies have been undertaken on how long the Severn rail tunnel will be closed when the electrification project is under way? Would alternative diversion routes, such as the Kemble to Swindon rail scheme, be useful additions when the scheme is constructed?

Lord Hammond of Runnymede Portrait Mr Hammond
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My hon. Friend is extremely diligent in pursuing the Swindon to Kemble rail scheme. Our proposals will require electrification through the Severn tunnel. I have not yet received a detailed proposal from Network Rail on how engineering work will be carried out, but we will be mindful of the potential for disruption.

Siân C. James Portrait Mrs Siân C. James (Swansea East) (Lab)
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I shall not express my disappointment with the decision again, but I would like to know this: are you going to publish the information on how you reached the financial decision? People in Swansea ought to be told what that decision was based on.

John Bercow Portrait Mr Speaker
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Order. I am not publishing anything, but the Secretary of State might be.

Lord Hammond of Runnymede Portrait Mr Philip Hammond
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If the hon. Lady would like to see the business case analysis for electrification from Cardiff to Swansea, I am happy to make it available to her. I can tell her that it will not reinforce her case.

Laura Sandys Portrait Laura Sandys (South Thanet) (Con)
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13. What assessment he has made of the potential for satellite navigation systems to increase the proportion of journeys undertaken by haulage companies using major routes.

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Baroness McIntosh of Pickering Portrait Miss Anne McIntosh (Thirsk and Malton) (Con)
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T1. If he will make a statement on his departmental responsibilities.

Lord Hammond of Runnymede Portrait The Secretary of State for Transport (Mr Philip Hammond)
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Since the previous Transport questions, I have launched a consultation on our proposals for high-speed rail, given the go-ahead for the £4.5 billion inter-city express programme, announced further electrification of the Great Western main line as far as Cardiff, announced £100 million-plus of additional funding to local authorities for pothole repairs and confirmed funding for a further nine local major transport schemes.

Baroness McIntosh of Pickering Portrait Miss McIntosh
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The Secretary of State will be aware that the European Aviation Safety Agency is currently consulting on flight time hours. I have been contacted by pilots living in my area who are keen that we export our high safety standards to the rest of Europe, and conclude that they will catch us up on fatigue and airline safety.

Lord Hammond of Runnymede Portrait Mr Hammond
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I am grateful to my hon. Friend. I have received, as I am sure other Members have, a great deal of correspondence on this issue. We are working with the Civil Aviation Authority to ensure that the European approach remains proportionate and appropriate. I assure her that we will not agree to anything that lessens safety levels in this country.

Lord Walney Portrait John Woodcock (Barrow and Furness) (Lab/Co-op)
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At our previous exchange, I asked the Secretary of State about rising fuel prices, and he said:

“I am pleased to say that it is not my business to do anything about this”.—[Official Report, 27 January 2011; Vol. 522, c. 435.]

Up and down the country, motorists will think that it is precisely the business of the Transport Secretary—the clue is in the job title. We are calling on the Government to reverse the VAT hike and consider deferring the next duty rise. What has he done?

Lord Hammond of Runnymede Portrait Mr Hammond
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Perhaps in due course the hon. Gentleman will learn that the occasional piece of humour does not go amiss in the Chamber. It is not the responsibility of the Transport Secretary to manage world oil markets, and it is not the responsibility of the Transport Secretary to deal with VAT or fuel duty. The latter are matters for my right hon. Friend the Chancellor, who will no doubt allude to them in his Budget speech on 23 March.

Margot James Portrait Margot James (Stourbridge) (Con)
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T3. I recognise the benefits that high-speed rail will bring to Birmingham and the northern cities it services, but will my right hon. Friend outline what benefits might be brought to the wider environs, such as the black country—a part of which I represent—and any towns along the route where it does not stop?

Lord Hammond of Runnymede Portrait Mr Hammond
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The benefits for my hon. Friend’s constituents of high-speed rail will be twofold. First, there are the benefits that will accrue to the west midlands region in general from the high-speed railway from London to Birmingham, and the benefits to the UK economy of enhanced productivity and competitiveness as a whole. Secondly, moving passengers on to the high-speed railway and creating large amounts of additional capacity will allow our existing railway to be used more innovatively, with new passenger and freight services for the future.

Naomi Long Portrait Naomi Long (Belfast East) (Alliance)
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T2. As the Minister will be aware, passengers travelling from Northern Ireland to London will be hit by two increases—the air passenger duty increase and the passenger landing charges being proposed at Heathrow and Gatwick. What discussions will the Minister have with the Northern Ireland Executive and other colleagues in government to ensure that there is still good access between London and Northern Ireland for business commuters?

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Alun Michael Portrait Alun Michael (Cardiff South and Penarth) (Lab/Co-op)
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T4. The Secretary of State has today offered my hon. Friend the Member for Swansea East (Mrs James) sight of the business case for the decision in Swansea, but we were previously promised that the full facts and everything about the case would be placed in the Library. That has not happened yet. In view of the importance of what is a major European route, including its importance to the economy of west Wales, will the Secretary of State promise to put all the details in the Library without delay?

Lord Hammond of Runnymede Portrait Mr Hammond
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Yes, I am happy to do so, although I should tell the right hon. Gentleman that, despite what was said at the time, the previous Government did not conduct a business case analysis of the proposal for electrification from Cardiff to Swansea.

John Bercow Portrait Mr Speaker
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Nicky Morgan. Not here.

Greg Mulholland Portrait Greg Mulholland (Leeds North West) (LD)
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I warmly welcome the Government’s clear commitment to take high-speed rail to Leeds, but will the Secretary of State give proper consideration in the consultation to the high-speed north proposal by Harrogate engineer Colin Elliff? The route would not go through the Chilterns, hence avoiding some of the environmental concerns there.

Lord Hammond of Runnymede Portrait Mr Hammond
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There will be a consultation on the line of route between Birmingham and Manchester, and between Birmingham and Leeds respectively, once line options have been developed by HS2. That consultation will take place early next year, and I look forward to my hon. Friend’s participation in it.

Paul Flynn Portrait Paul Flynn (Newport West) (Lab)
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T6. Does the Minister intend his direction of travel to lead towards the inevitable break-up and privatisation of Network Rail, in order to appease the probably insatiable appetite of the rail operating companies?

Lord Hammond of Runnymede Portrait Mr Hammond
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As my right hon. Friend the Minister of State said earlier, Sir Roy McNulty is conducting a review of value for money in the rail industry. One of his preliminary findings is that we need better alignment of interests between train operators and the infrastructure operator. Network Rail has responded to those recommendations, unprompted, by announcing that it will give greater autonomy to its regional route managing directors. I think that is a step in the right direction.

Charlie Elphicke Portrait Charlie Elphicke (Dover) (Con)
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On 23 March, the people of Dover will vote in a referendum on whether they want a people’s port big society change in Dover. If the people vote for the big society, will the Secretary of State help to implement it?

Dennis Skinner Portrait Mr Dennis Skinner (Bolsover) (Lab)
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A few minutes ago the Secretary of State was asked a perfectly reasonable question about whether he was speaking up for motorists on the VAT increase. He was not asked whether he would implement it; he was asked for his view. Has he said anything to the Chancellor? Why does he not open his mouth about the massive rise in petrol prices? Come on, let’s hear what his view is!

Lord Hammond of Runnymede Portrait Mr Hammond
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How can I resist a suggestion from the hon. Gentleman to open one’s mouth? I can tell him this: I speak regularly to the Chancellor on a range of matters, and the content of those discussions will remain private.

Nick de Bois Portrait Nick de Bois (Enfield North) (Con)
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London has rightly invested in the necessary infrastructure to ensure that the Olympics are a success, so will the Secretary of State work with the Rugby Football Union, Network Rail and local authorities to ensure that the rugby world cup in 2015 is not overlooked, and that we can have a station that is fit for the home of rugby and can meet the demands?

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Stephen Timms Portrait Stephen Timms (East Ham) (Lab)
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At great expense, a station has been built on High Speed 1 that says “Stratford International” on the outside, even though no international trains stop there. When will this rather embarrassing state of affairs be resolved?

Lord Hammond of Runnymede Portrait Mr Hammond
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Operational matters on High Speed 1 are a matter for the concessionaire and for the companies operating the services. I can tell the House that Deutsche Bahn intends to start running services from Frankfurt to London in 2012, and I hope that other operators will start to run similar services. That will be good news for passengers in general, and probably good news for the right hon. Gentleman’s campaign. The more operators there are on the route, the more chance there is of getting additional services.

None Portrait Several hon. Members
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