Oral Answers to Questions

Stephen Hammond Excerpts

Thursday 10th July 2014 Commons Chamber

[Charlie Elphicke (Dover) (Con)]

3. What assessment he has made of the economic effect of high-speed rail services to Kent.

[The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)]

The Department for Transport is currently undertaking an economic evaluation of High Speed 1, covering transport user benefits, wider economic impacts, regeneration, and Government shareholdings and assets. That evaluation is planned to be completed this summer.

[Charlie Elphicke]

I thank the Minister for that answer, and I welcome the announcement of the full extension of HS1 to Deal, Walmer and Martin Mill in my constituency, and the benefits that that will bring to the local economy. Will he give an idea of the similar benefits that might be provided by HS2?

[Stephen Hammond]

It is only fair for me to recognise the extraordinary efforts of my hon. Friend in ensuring that high-speed rail comes to Deal. I also recognise the extraordinary efforts of my hon. Friend the Member for Hastings and Rye (Amber Rudd), who is making the same case. HS2 will make an important contribution to securing prosperity across the country. It will generate jobs and rebalance the economy, and our estimates suggest that there will be more than £70 billion of benefits, including £53 billion of benefits to business.

[Mr Sheerman]

That’s £80 billion of wasted taxpayers’ money.

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[Tom Greatrex (Rutherglen and Hamilton West) (Lab/Co-op)]

5. When he last used the Caledonian sleeper service for travel in an official capacity.

[The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)]

My right hon. Friend the Secretary of State for Transport has not yet used the service in an official capacity, but plans to do so shortly. My noble Friend the Minister of State, Baroness Kramer, used the Caledonian sleeper service on the evening of 31 October on a visit to Scotland. The Caledonian sleeper service is part of the ScotRail franchise, which is the responsibility of the Scottish Government.

[Tom Greatrex]

By my reckoning, there are at least four Members in their place this morning who are regular users of the sleeper service. When the Minister’s right hon. Friend the Secretary of State has the opportunity to use the sleeper service soon, he will, I am sure, discover that although it is not particularly high speed and he might not necessarily get that much sleep, it is a useful service. Given that the UK Government, along with the Scottish Government, are part-funding significant upgrade of the rolling stock, what is the Department doing to ensure that as much of the supply chain work for the upgrade goes to UK companies?

[Stephen Hammond]

As the hon. Gentleman will be aware, the Scottish Government announced in May that the winning bid for the franchise will commence next year. We want to ensure a service that not only he, but all Members, can sleep on. The rolling stock competition will lead to an upgraded rolling stock. The competition will of course be open to British companies, which are currently very successful at winning contracts across the panoply of rolling stock contracts let by this Government.

[Mr Charles Kennedy (Ross, Skye and Lochaber) (LD)]

Mr Speaker, may I make it abundantly clear that those of us with a clear political conscience sleep very well indeed on the sleeper service?

Will the Minister reflect on the fact that 15-plus years ago the then passenger franchise director was seeking to get rid of sleeper services, saying that they had no commercial future? In their wisdom, the Government—I support them on this one, for once—are providing match funding of £50 million at each end, with the Scottish Government, for a massive expansion to secure the future under Serco’s new 15-year franchise. This is a vote of confidence, the like of which has not happened in the lifetime of anyone in this Parliament. Will he welcome that fact and sleep well himself?

[Stephen Hammond]

I sleep well most nights, but nothing my right hon. Friend says ever fails to surprise me, either about his conscience or other matters. I am delighted to have his support on this matter. He is of course right: the sleeper service offers a unique, valued and high-profile service between Scotland and London. He is also right to say that the Government are committing to these services. The House will have noted the Prime Minister’s remarks in Cornwall last week on the Cornish sleeper service.

[Sir Tony Baldry (Banbury) (Con)]

May I, on my birthday, reflect that the passage of time and progress are not always the same thing? Nothing will ever equal the excitement of a child at King’s Cross station taking the night sleeper steam train to Inverness and the highlands, and waking up at Aviemore to have kippers in the restaurant car. That is one of the many joys, like all-night sittings, that younger Members will never enjoy.

[Mr Speaker]

We are always pleased to be informed of the source of the right hon. Gentleman’s excitements, whether current or historic.

[Stephen Hammond]

May I wish my right hon. Friend—and my sister—a happy birthday?

I think progress will be appreciated by all younger Members. The rolling stock will ensure that they get a good night’s sleep as they are whisked swiftly to Scotland to enjoy the many benefits of that country, which must of course stay in the Union with the rest of this country.

[Diana Johnson (Kingston upon Hull North) (Lab)]

6. What recent progress his Department has made on provision of rolling stock in the north of England.

[The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)]

The Department for Transport reached agreement with Northern Rail in April 2014 to introduce four-coach electric trains that will begin operating in passenger service between Liverpool and Manchester from December 2014.

TransPennine Express also received 10 new four-coach class 350 electric trains, which will now operate between Manchester and Scotland. Since May, TransPennine Express has used the displaced diesel trains to provide an additional service every hour across the Pennines and additional capacity across the network. In relation to the TransPennine Express diesel class 170 trains that Chiltern will lease from April 2015, the Department is continuing to explore options with industry partners and is in commercial negotiations. The Department will be outlining its proposed solution later in the year.

[Diana Johnson]

Perhaps the Minister missed the fact that I am a Hull MP, because he did not actually mention any of the services that go to Hull. Last week there was a lot of spin about HS3 for the north, which obviously will not happen until years after 2030, so let me press the Minister on the fact that we still do not have a resolution to the rolling stock being moved from TransPennine to Chiltern Railways. Again, is it not the case that, for the north, it is jam tomorrow, but today it continues to be jams for local people on the railways?

[Stephen Hammond]

The hon. Lady is wrong: the Department has identified a potential solution. We hope to be able to make a formal announcement later this summer. The decision to move the nine TransPennine Express class 170s was made by their owner. To address that, the Department is in commercial negotiations to develop a solution that is likely to see the introduction of more electric trains into the north, in addition to the 14 class 319s we have already announced, to release even more diesel units.

[Martin Vickers (Cleethorpes) (Con)]

The improved rolling stock that was introduced by TransPennine for Cleethorpes to Manchester services a few years ago increased patronage considerably. Will the Minister give an assurance that when the new franchise documents—the invitation to tender—are published later this year, he will specify that the highest quality of rolling stock be maintained on services out of Cleethorpes and that it will be at least the quality of the 185 units in use at present?

[Stephen Hammond]

My hon. Friend is an absolute campaigner for his constituents, and he has spoken to me a number of times on this issue and on the consultation. I should say that the consultation is just that. We are viewing a number of proposals at the moment, including the remapping of certain services, but I am sure that he will wish to continue to make those points during the consultation period. When the consultation finishes, we will consider all the points made and look to specify the necessary rolling stock requirements in the invitation to tender to ensure that the best services are provided for people across the north.

[Mrs Louise Ellman (Liverpool, Riverside) (Lab/Co-op)]

When the Department agreed to move rolling stock from the north to Chiltern Railways, the Secretary of State said that he could not have “unreasonably” withheld his consent. As it is clear that no solution to the problem has yet been identified, under what circumstances would it have been reasonable for him to refuse to allow that move from north to south?

[Stephen Hammond]

It is not often that I would dare to correct the hon. Lady, who chairs the Select Committee on Transport, but she clearly was not listening to my two previous answers. A solution has been identified. We are in commercial discussions and we will be making a formal announcement this summer.

[Mr Philip Hollobone (Kettering) (Con)]

Four trains an hour leave St Pancras destined for the north of England, with rolling stock through Kettering, but only one an hour stops at Kettering, so we have only an hourly service northbound, whereas we used to have a twice-hourly service northbound. Will the Minister speak with East Midlands Trains to give us our old service back?

[Stephen Hammond]

I thank my hon. Friend for his campaign on behalf of his constituents. Not only will I speak to East Midlands Trains about the issue, to ensure that his point is heard, but I am sure that he will want to catch me later to stress the point further.

[Lilian Greenwood (Nottingham South) (Lab)]

The Government’s consultation on rail services in the north proposes a number of route level changes to TransPennine Express, but is silent on Ministers’ plans for Northern Rail, even though it is clear that wide-ranging changes are envisaged. Will the Minister come clean with passengers, rule out a backroom deal and let people know what is planned for their area?

[Stephen Hammond]

There is a live consultation on Northern and TransPennine at the moment, which invites views across the region on a number of proposals, including the remapping of some franchise services between the two franchises. It involves both Northern and TransPennine, and I should stress that it is a consultation, which does not finish until mid August. When it does so, we will consider all those responses. There is no question of any backroom deal.

[Andrew Percy (Brigg and Goole) (Con)]

Can the Minister assure us that in the consultation on the new rail franchises, he will take account of the strong campaign being run by the Scunthorpe Telegraph and the Grimsby Telegraph in respect of our desire and requirement to maintain our services through to Manchester? Can he assure us, too, that whatever changes come, we will not be condemned to the Pacer units that I have to use every week on the train back to Goole?

[Stephen Hammond]

Let me give my hon. Friend two pieces of good news. First, I know he will have read the consultation document from cover to cover, so he will have noted paragraph 7.7, which states that the

“bidders will be required to include plans, either in their core proposition or as an option, which would enable the withdrawal of all Pacer units from Northern services.”

I obviously recognise the campaign of the two newspapers he mentioned, and I am aware of the campaign he has rightly put forward on behalf of his constituents. I would say to my hon. Friend, as I have said to those newspapers, which faithfully reported my words, that this is a consultation and no decision has yet been made.

[Mr Speaker]

I call Jack Dromey. Not here.

[David Mowat (Warrington South) (Con)]

8. What the estimated cost-benefit ratio is for the High Speed 2 Wigan spur.

[The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)]

The Department has not estimated the case for the western leg of the Y-shaped route for High Speed 2 without the Wigan spur. However, preliminary analysis undertaken by HS2 Ltd suggested that this section of the line is likely to provide benefits in the order of £1.2 billion, revenue of about £600 million, and is likely to offer very high value for money.

[David Mowat]

I have been, and remain, a strong supporter of HS2 because I believe in the transformational benefits that will occur. However, none of these transformational benefits occurs because of the line north of Manchester—it is not in the published business or in the published economic case—and the cost of this line is the better part of £1 billion, including allocated contingencies. Will the Minister confirm that he will look hard at this issue during the current consultation?

[Stephen Hammond]

I welcome my hon. Friend’s support for High Speed 2, and I welcome the opportunity to lay on the line yet again that the mischievous remarks of the hon. Member for Huddersfield (Mr Sheerman), suggesting a figure of £80 billion, are completely false. I will, of course, look through the consultation, but I am sure my hon. Friend will recognise that having the Wigan spur will ensure that we can deliver some of the benefits to the west coast main line, which is why the Government believe at this stage that it offers high value for money.

[Several hon. Members]

rose—

[Mrs Cheryl Gillan (Chesham and Amersham) (Con)]

Thank you, Mr Speaker. This morning, I heard of the death of Mrs Shirley Judges, one of my firm campaigners against HS2—and she was probably against the HS2 Wigan spur. She had put up a robust defence of our local environment in the Chilterns and throughout the country. The cost-benefit analyses of this Government have always been questionable, but I would like the Ministers to look very seriously at the benefits for those people who are forced to move house because of HS2 or indeed those who may be forced to move house in future because of the Wigan spur. Would it be possible to give these people a stamp duty holiday on the sale of their properties because they are being so badly affected? Finally, let me say that without people such as Mrs Judges, we would not have the strong voices that will make this project either go away or become a better project in the future.

[Stephen Hammond]

I never cease to be supportive of my right hon. Friend’s support for her constituents, and on this occasion she has managed to alter this country’s geography so that the Wigan spur is somewhere close to Chesham. I am sorry to hear of her constituent’s death and our condolences go to her family. She will, of course, recognise that the Government are already paying the stamp duty on properties within the 60-metre boundary. If she writes to my right hon. Friend the Secretary of State, I am sure he will consider her proposition for a further extension as part of the consultation.

[Mr Laurence Robertson (Tewkesbury) (Con)]

10. What recent progress he has made on improving the A417-A419 at Nettleton Bottom and Crickley Hill in Gloucestershire; and if he will make a statement.

--- Later in debate ---

[Mr Frank Doran (Aberdeen North) (Lab)]

11. What recent assessment he has made of the safety of passengers in the offshore oil and gas helicopter transport system.

[The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)]

The Civil Aviation Authority published its review of offshore helicopter safety on 20 February this year. The United Kingdom has a good helicopter safety record, and there is no evidence to suggest that travelling to oil and gas installations by helicopter is any less safe than travelling by any other helicopter operated in the UK. However—like the hon. Gentleman, I am sure—I am pleased that the CAA review has proposed a number of recommendations for further examination of the overall safety for passengers in the offshore oil and gas helicopter transport system. I note that the oil and gas industry has accepted the recommendations. It is working closely with the CAA to implement them and introduce safety improvement measures, and the Department is carefully monitoring the effectiveness of the CAA and the industry in doing so.

[Mr Doran]

I am sorry that the Minister did not mention the Transport Committee’s report on the serious problem of helicopter transport in the offshore industry, which was published on Tuesday this week. I hope that, when the Secretary of State sees the report, he will focus on the part that deals with the survivors of the last fatal crash in August last year, so that he can fully understand what the work force in the North sea have to put up with every day, and why those workers and their families support the demand for a full public inquiry into helicopter safety.

[Tom Greatrex (Rutherglen and Hamilton West) (Lab/Co-op)]

T1. If he will make a statement on his departmental responsibilities.

[The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)]

May I update the House on a few matters my Department has been involved in since the last Topical Questions? The announcement of the first £6 billion of growth deal projects on Monday included a raft of transport schemes across the country, with money being spent on schemes determined by local priorities to boost local economic growth. This landmark investment comes after our allocation in June of an extra £200 million to local authorities to fix potholes. Since the last Transport questions, the Department has also signed a contract with Virgin Trains for rail services on the west coast main line providing an extra 1,000 seats, and at the beginning of the week we announced £53 million to be spent on improving wi-fi access on trains, enabling passengers to receive seamless mobile broadband connections.

[Tom Greatrex]

I thank the Minister for that reply. I am sure he will be aware that it is very important, particularly cross-border, that we maximise the use of rail freight in this country, but I note that the east coast invitation to tender document states that

“there is no requirement to protect capacity for freight”

on what is a key section of that line. Will he confirm that that is the case and that, as part of this rushed privatisation of the east coast main line, he is making it much harder for freight to access this network?

[Stephen Hammond]

The hon. Gentleman has unfortunately failed to mention the upgrades on the other part of the freight line, which will ensure that all of those freight services still operate and there will be no diminution of service for freight operators north-south.

[Mr Mark Harper (Forest of Dean) (Con)]

T5. I thank my hon. Friend for the significant investment benefiting both Lydney and Cinderford in my constituency that was announced at the beginning of this week as part of the growth deal. It is a part of our long-term economic plan, showing joined-up Government, which is welcomed by my constituents and will make a real difference to their everyday lives.

[Stephen Hammond]

I thank my hon. Friend for mentioning both those schemes. The Cinderford north quarter link road and the Lydney transport strategy will be of benefit to his constituents, and he has been a real campaigner for them. I am delighted he welcomes them, and I am sure he will have noticed the remarks of the chairman of the Gloucestershire First—now GFirst—local enterprise partnership, Dr Diane Savory, who said:

“I’m absolutely thrilled that the Government has recognised the huge economic potential in Gloucestershire”.

Indeed, we have.

--- Later in debate ---

[Mr Andrew Turner (Isle of Wight) (Con)]

T6. Governments sometimes help with one Department but take away with another—on this occasion the non-ministerial Her Majesty’s Revenue and Customs. Will my hon. Friend make an assessment of the Isle of Wight’s connectivity and the impact on the Solent growth deal of HMRC removing the island’s ferry services from the tonnage tax regime? HMRC says it is not going to sea, which sounds a bit odd.

[Stephen Hammond]

My hon. Friend has lobbied me on a number of occasions about the island’s ferries. In this particular regard, qualification for the tonnage tax is a matter for HMRC. It is our understanding that since 1 July 2005 ferries have had to be operating at sea to qualify for tonnage tax. The cross-Solent ferries are regarded as operating within an estuary, as opposed to the sea, and therefore do not qualify, so there is no impact on the Solent growth deal in respect of these services.

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

T2. What study has the Minister made of the potential for open access operators to reduce journey times between Newcastle and London on the east coast main line? What competition policy is he operating with regard to that matter?

[Stephen Hammond]

The right hon. Gentleman will know from the prospectus that we have welcomed the possibility of open access operators opening up new markets on the east coast main line. There is scope for that within the proposals, and we are looking at the bids very carefully. We recognise the benefits that open access has already brought for a number of people in a number of markets from the north of England, and I look forward to any other costed proposals.

[Mr Dominic Raab (Esher and Walton) (Con)]

T7. Under the previous Government’s franchise, South West Trains passengers are the single biggest subsidisers of other train lines in Britain, yet their services were rated as third worst value for money in 2014, mainly because of overcrowding. Does the Minister recognise that my constituents using South West Trains deserve a fairer deal when Labour’s franchise is renegotiated in 2017?

[Stephen Hammond]

My hon. Friend has rightly consistently raised this matter on behalf of his constituents. He will recognise that the level of overall satisfaction with South West Trains in a recent survey was at about the sector average, but I recognise, as he does, that overcrowding on South West Trains in the peak hours is a well-known issue and it affects the perception of value for money. My Department is working closely with South West Trains to address that.

[Mr Speaker]

Roberta Blackman-Woods. Not here. I call Grahame M. Morris.

--- Later in debate ---

[Duncan Hames (Chippenham) (LD)]

The consultation on the Great Western franchise, which has recently closed, covers a period that includes electrification and the first phase of the east-west rail project. What scope does the Minister see for introducing in the latter phase of that franchise additional services between Bristol and Oxford and beyond?

[Stephen Hammond]

My hon. Friend is right in what he says. He will have seen that consultation and the fact that we have invited initiatives from operators and franchise bidders in that regard. The possibility of extra services is being opened up by this Government’s commitment to electrification; by 2019 we will have put in place more than 870 miles of electrification whereas Labour managed less than 8 miles.

[Jim Fitzpatrick (Poplar and Limehouse) (Lab)]

Will the Minister with responsibility for shipping support the Mission to Seafarers, the Apostleship of the Sea and Seafarers UK and the excellent work those important charities do? Will he look at what support the Department gives and whether it can be increased for those very important charities?

[Stephen Hammond]

The hon. Gentleman is right. I support those charities, and I am delighted to have attended a number of their events with him. I will look at that and see whether there is any more that the Department can do.

[Philip Davies (Shipley) (Con)]

Aldi is ready to go ahead with the development of a new supermarket in Bingley that commands great public support. To go ahead, the development needs a land transfer from the Highways Agency via Bradford metropolitan district council. Will the Minister ensure that the Highways Agency pulls its finger out as soon as possible to make that happen so that that essential regeneration can take place in Bingley?

Crossrail

Stephen Hammond Excerpts

Thursday 3rd July 2014 Written Statements

[The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)]

In January the Prime Minister joined me at Tottenham Court Road to mark 50% completion of the Crossrail project. The Crossrail project has now moved into the peak of its construction phase. There are over 11,000 people working at over 40 sites across London. Four of the tunnel boring machines have completed their journeys and the new rail tunnels are over 80% complete including the Thames tunnel. The final tunnel drives are now under way and tunnelling should be completed by next spring. Construction is also progressing on the 10 new Crossrail stations and on works above ground west of Paddington and east of Stratford.

In the past year we have made great progress in many different areas of the project. Last July we announced that there would be a Crossrail station in Woolwich which is now the catalyst for the regeneration of the surrounding area, attracting investment from businesses and developers and supporting our plans for long-term economic growth.

In February the joint sponsors announced the contract to provide the rolling stock and depot was awarded to Bombardier UK plc. The contract covers the supply, delivery and maintenance of 66 new trains and a depot at Old Oak Common. This will support 760 UK manufacturing jobs plus 80 apprenticeships building the trains in Derby. The construction of the maintenance depot at Old Oak Common will see 244 jobs plus 16 apprenticeships supported when fully operational.

This is just one part of the contribution Crossrail is making to economic growth across the United Kingdom. It is estimated that during the construction phase the project will generate at least 75,000 business opportunities and support the equivalent of 55,000 full-time jobs around the UK. Firms from across the United Kingdom are winning business from the project. Sixty-two per cent of the suppliers winning work are outside London and over half (58%) are small and medium-sized enterprises. Ninety-seven per cent of Crossrail’s contracts are based in the United Kingdom.

We have also announced that Crossrail will now be extended to Reading. The extension of Crossrail services to Reading will achieve the best use of capacity on the Great Western line while also offering greater flexibility for future timetabled services.

The National Audit Office published their report on the project in February and this found that taxpayers’ interest in the Crossrail programme has so far been well protected. A Public Accounts Committee hearing held on 9 April supported those findings.

As we move towards the operational phase of the project, work is progressing on the appointment of the operator of the Crossrail services. Transport for London expect to announce the award of the Crossrail train operating concession later this year.

The Crossrail board continues to forecast that the costs of constructing Crossrail will be within the agreed funding limits. We expect Crossrail to cost no more than £14.5 billion (excluding rolling stock costs).

During the passage of the Crossrail Bill through Parliament, a commitment was given that a statement would be published at least every 12 months until the completion of the construction of Crossrail, setting out information about the project’s funding and finances.

In line with this commitment, this statement comes within 12 months of my last one which was published on 9 July 2013. The relevant information is as follows:

Cross-border Rail Services in Wales

Stephen Hammond Excerpts

Wednesday 2nd July 2014 Westminster Hall

[The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)]

It is a pleasure to serve under your chairmanship, Mrs Riordan. Today’s debate has shown the importance of transport and the rail industry to economic growth and the lives and livelihood of so many people across the country. I congratulate the hon. Member for Newport East (Jessica Morden) on securing the debate.

Many of the questions that hon. Members have posed this morning reflect the challenges of success. Since the Conservative Government took the decision to privatise the railways back in 1993, the number of people using the railways has doubled. The hon. Lady raised issues of great importance to the economic development of both England and Wales. From her service as a member of the Select Committee on Welsh Affairs, she will know that cross-border links have been the subject of several inquiries, as have tolls on the Severn bridge, and I am grateful that she did not raise that matter today.

I will now address several of the points that hon. Members have raised during the debate. The hon. Member for Newport East asked some specific questions about her constituency, some of which I will answer in writing, if I may. On timetabling, however, franchise agreements require train operating companies to co-ordinate services, but that co-ordination clearly has not been as strong in certain areas as it might. There has been dialogue between the Severn tunnel action group, Arriva Trains Wales, Arriva and the Welsh Government, but I am disappointed that no sensible conclusion has been reached thus far. I urge the groups to continue to talk, because meeting the obligation is possible.

On connectivity, some of which is determined by constraints on the Cardiff to Cheltenham and Birmingham to Bristol routes, if there is a solution, which is possible, it will require some substantial work by Network Rail, the TOCs and the Welsh Government to investigate the options and then agree on one.

The hon. Lady also mentioned her constituents’ desire to be able to use the Bristol service to work there. Some substantial work has been done with local authorities in the west of England to fund additional services, including those to Portishead, which will introduce a metro service to the area. While that is of benefit to the Bristol area, as the hon. Lady is right to say, we are currently encouraging the Welsh Government and the West of England local enterprise partnership to talk to ensure greater connectivity between the two schemes, which would be of benefit to her constituents.

The hon. Member for Vale of Clwyd (Chris Ruane) spoke of his time as a casing boy, as I think he described it. Although probably not as glamorous as that of the hon. Gentleman, I too had a job on the railways and spent two rather hot summers as a carriage cleaner many years ago during my university career. He was right to mention the potential of connectivity to Airbus in Deeside to generate jobs, but that is unfortunately a matter for the Welsh Government, so I urge him to take the matter up with them to see whether it can be improved.

[Chris Ruane]

The Minister will recall that I said that the Department for Work and Pensions had grants available 10 years ago to improve transport from areas of high unemployment to areas of employment. Is that not another possible source of funding?

[Stephen Hammond]

Most issues concerning rail services wholly inside Wales are now a matter for the Welsh Government, which is the key point here.

The hon. Member for Alyn and Deeside (Mark Tami), who is no longer in his place, suggested that rail is an afterthought. That may or may not have been the case previously, but it is certainly not the case under this Government. Rail is at the heart of both our economic and transport strategies.

The hon. Member for Wrexham (Ian Lucas) referred to the scale of investment that he had seen elsewhere. The scale of investment proposed in the current control period between now and 2019 dwarfs any of the investment that he has seen in any other country, because £38 billion is being invested in this country’s rail system. On top of that, £30 billion is going towards the road system. He mentioned regional input, and we will soon be announcing local growth funds, into which local authorities will bid. We have also encouraged local authorities to come up with local rail projects, and there is also the local pinch point fund, so there is much local activity.

The hon. Gentleman also referred to the Wrexham to Bidston line, and I recognise and understand his desire for its electrification. At the moment, however, the aspiration should be to get a more frequent diesel service so that plans can move forward. The hon. Gentleman is right to have such hopes and I promise to work with him, because increasing frequency on that line would be of substantial benefit to his constituents.

My hon. Friend the Member for Montgomeryshire (Glyn Davies) spoke of his campaign for an hourly service from mid-Wales so that newly elected Conservative MPs can actually get to London, and I am delighted that that service is in place. He also asked about the new Virgin direct award deal and direct services from Shrewsbury to Euston. I confirm that he is absolutely right: there would be little point in putting in place a service that did not allow for economic growth and for easy movement from London to Shrewsbury, and the other way around, to do a day’s work. The first train in the morning leaves before 6.30 am, but gets into London by 9.15 am; the last train back in the evening leaves around 6.30 pm—I think at 6.32 pm—which gets someone back into Shrewsbury for 9 o’clock, allowing a full day’s work in London if necessary.

The hon. Member for Swansea West (Geraint Davies) made a number of points, some of which I will cover later in my speech. He talked a little about his aspiration for renationalisation of certain parts of the line. I am not entirely sure where that fits with the shadow Chancellor ruling it out on the television on Sunday. I am happy to reaffirm to him, however, that the Government’s view is that franchising, and the creation of partnerships between the public and private sectors, is the best way to get value for money and better services for the fare payer and the customer, as well as the taxpayer. That is clear.

[Geraint Davies]

What I was getting at was that the east coast main line is now in public ownership, or publicly run, and we are saving £700 million, so does the Minister have an open mind on individual franchises? There was a basis for competitive tendering to include the public sector, so that we got the best value for money. I am not talking about total nationalisation for the sake of it; I want best value for the taxpayer. Does he agree with that, or does he want to give money away willy-nilly to the private sector because he is the one that is ideologically driven, not me?

--- Later in debate ---

[Stephen Hammond]

I absolutely disagree. The east coast franchise, however, will be out of public hands and back into private hands as a result of the franchising. By the end of the year, we will have announced the winner of that competition.

The hon. Gentleman must have noted the Rail Delivery Group report that came out on Monday, which pointed out that, since privatisation, the level of private sector profits for the rail companies has fallen, while the premium going to the Government has risen by more than £400 million. The facts show not only that privatisation has seen a doubling of passenger numbers, but that franchising has benefited both passenger and taxpayer. He should agree that those facts bear out the point that the process is not ideologically based at all.

The hon. Member for Llanelli (Nia Griffith) talked about the Pembrokeshire to Manchester stopping service, but that is a matter for the Welsh Government, because the stops would be inside Wales. I am sure that the Welsh Government will read her comments, and I hope that they will take them on board. As hon. Members know, it is true that co-operation on and, where appropriate, co-ordination of transport matters between the Department for Transport and the Welsh Government is important to the success of cross-border links. Relationships have advanced significantly and co-operation under the joint parties agreement occurs regularly. The Welsh Government and the Department have a good working relationship. Officials can therefore provide Ministers with the best advice possible to deliver some of the aspirations that we are discussing.

Co-operation between the two Governments is clearly vital if we are to secure the best possible benefit from the record levels of investment now going into the rail network. The investment for 2014 to 2019 that I mentioned—the details were published in July 2012—is built around four priorities: further electrification; increased capacity and faster journey times between key cities; facilitating commuter travel between and into major urban areas; and improving the major railway links to ports and airports. More specifically in Wales, the strategy includes the £1.35 billion electrification of the Great Western main line between London and Cardiff, on which services are expected to be electric by late 2017, and the electrification of the valley lines, which is due to be completed by 2019. Furthermore, the UK Government are specifying and funding electrification of the line from Bridgend to Swansea, thereby completing the 47-mile main line electrification from Cardiff to Swansea.

[Geraint Davies]

Is there, therefore, an undertaking for the Government to finance it all the way from Paddington to Swansea? The Minister also seems to be suggesting the valley lines will be included, but is there now at least a commitment that the UK Government will pay from Paddington all the way through to Swansea? Is there clarification of who is paying for the valleys bit?

[Stephen Hammond]

As the hon. Gentleman knows, that discussion is ongoing. The Welsh Government have raised issues about the arrangement signed with my right hon. Friend the Member for Putney (Justine Greening), who was Secretary of State for Transport at the time.

[Nia Griffith]

Will the Minister flag up in all franchise discussions the issue of people having to change trains as the line is gradually electrified, so that we do not end up with more changes than necessary? We want one simple change, if necessary, in Swindon, Bristol or Cardiff, according to how far the electrification has gone, and then to go right through to west Wales.

[Stephen Hammond]

With regard to that and to First Great Western, we have undertaken a consultation this year about what the services might be and how they might be improved in the next direct award. I hear what the hon. Lady says, and I am keen not only to specify services that provide the best value and best opportunity for travellers, but to allow the privatised companies the best advantage to ensure that they can look at new services and new opportunities for new markets, using innovation within the franchise.

Other elements of our strategy will also be of benefit to Wales. The Heathrow western access scheme will reduce journey times between Cardiff and Heathrow airport by about 30 minutes from 2021. The UK Government have committed to the introduction of super-express trains on the Great Western main line by 2018, which will reduce the journey time between Cardiff and London from about 2 hours to 1 hour and 42 minutes. Crossrail will then speed up access between Paddington and central London from 2019, which will provide a fast, one-change journey from south Wales to the City of London, the docklands and beyond. Welsh stations will also share in the £100 million of station improvement funds and the £100 million of Access for All funds from 2014 to 2019. Overall, therefore, Wales stands to benefit directly and indirectly from almost £2 billion of investment in modernising the rail network.

Cross-border rail services between England and Wales are provided by four franchised train operators. The Department for Transport has a statutory obligation to consult Welsh Government Ministers before issuing any invitation to tender for a franchise agreement that includes cross-border services. As I said in response to a number of questions, where a service is provided wholly within Wales, the Welsh Government must be a signatory to the franchise.

The Arriva Trains Wales franchise is not due to expire until October 2018. The Welsh Government specify and fund services within Wales and across the border, and they carry out the day-to-day management of the franchise and have the powers to fund improvements. Train operators are of course free to run additional services if they consider that is the right thing to do. The Department is working with Arriva Trains Wales to provide additional cross-border services from December 2014.

On Silk and further devolution, which came up several times, the Government support the decision to devolve Welsh services in the Wales and Borders franchise to the Welsh Government. A joint agreement governs joint management of the existing franchise to 2018. In our evidence to part 2 of the Silk commission, the UK Government noted the strong case in favour of modifying the devolution boundary in respect of the Wales and Borders franchise. The Silk commission subsequently reported that further devolution of the rail network in Wales would be possible and desirable, although it would require close cross-border co-operation. Our response to Silk made it clear that recommendations that did not require primary legislation could be implemented early if we were satisfied that the case for change had been clearly made and there were support across Government for its implementation.

We recently held a consultation on the second direct award, and I recognise the concerns that have been expressed about the First Great Western franchise. That was why we carried out the public consultation, so that it could inform us of some of the concerns and issues so that they can be addressed when the award is made.

A number of Members raised the issue of the high-speed network. High Speed 2 will deliver significant benefits for Wales through the interchange at Old Oak Common and the improved journey times to London and the north via Birmingham and Crewe. It will also allow for greater commuter, freight and local services from the capacity released on the existing networks. Intercity express programme trains will also be coming to Wales from 2017—

[Mrs Linda Riordan (in the Chair)]

Order.

To allow the next debate to begin, I ask Members leaving the Chamber to do so quietly.

Essex Thameside Rail Franchise

Stephen Hammond Excerpts

Monday 30th June 2014 Written Statements

[The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)]

On Friday 27 June 2014, the Department for Transport announced its intention to award the Essex Thameside franchise to NXET Trains Ltd. The franchise will begin in November this year (2014) and run for 15 years until 2029.

The new franchise builds on the firm foundation of high standards of punctuality and passenger satisfaction that passengers on the route have come to expect. The bid sets out a clear plan for how NXET Trains Ltd will seek to exceed these expectations and meet the significant demand for transport services that is expected from the continuing strong economic growth in the area.

This is an excellent bid for passengers and will provide a large number of improvements, which include:

Additional fleet of 17 brand new trains providing almost 4,800 extra seats;

More than 25,000 additional seats for the morning peak-time commuters every week by the end of the franchise;

£5 million invested to improve Barking station;

£1.6 million invested to improve Fenchurch street station;

£10 million on improving further stations across the route;

Making staff more visible at stations;

Over 200 new car parking spaces;

More than £457,000 spent on cycle spaces and other accessibility improvements;

Free wi-fi at stations and on board trains;

Better information for customers;

SMART ticketing scheme including automatic delay repay for passengers.

NXET Trains Ltd bid is an ambitious one that not only provides for existing and future passengers but also delivers great returns for the taxpayer with over £2 billion in premium expected to be paid to Government over the course of the franchise.

In accordance with usual procurement practice, we are now in a standstill period of 10 days before my Department will be in a position to enter into, and complete, the formal contractual documentation and make the award to NXET Trains Ltd.

Reaching this milestone demonstrates that rail franchising is on track and providing a world-class railway that benefits the taxpayer and has the passenger at its heart.

Sulphur Regulations

Stephen Hammond Excerpts

Wednesday 18th June 2014 Westminster Hall

[The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)]

It is a pleasure to serve under your chairmanship this afternoon, Dr McCrea. Like other Members, I congratulate the hon. Member for Kingston upon Hull East (Karl Turner) on securing this important debate. The sulphur regulations will undoubtedly have an impact on the shipping industry, jobs and the environment. I will answer a number of his points but also put on record some of what the Government have been doing. Some of the information that has been put about is perhaps slightly disappointing.

The hon. Gentleman was right to identify at the start of his speech that the fundamental issue is air pollution and its impact on human health and the environment. Everybody accepts that air pollution is bad for people’s health. We are talking not just about quality of life, although that is important, but about costs to industry and the commercial sector when people are off work because they are sick, and costs to the national health service for treating those who need treatment. Reducing sulphur emissions will undoubtedly provide benefits to public health, in both inland and coastal communities. Reducing the emissions will also provide benefits to the environment. Sulphur is linked to acid rain, which affects plant life and crops, and can upset the balance of delicate marine eco-systems.

For exactly those reasons the Government have worked consistently with the International Maritime Organisation, or IMO—the international body with the knowledge and expertise to regulate international shipping appropriately and proportionately—to develop measures to regulate pollutant emissions from ships. Throughout the whole of that process, under both this Government and the previous Government, the aim has been to develop measures that are effective and proportionate, with a view to implementing them in a way that minimises both the regulatory burden on and the cost to industry.

In the IMO, pollutant emissions from ships are controlled by annex VI to the international convention for the prevention of pollution from ships, more commonly known as MARPOL. Although it is true that a number of operators have worked to reduce emissions, sadly some have taken no steps on the issue. The regulations, which date back to 2008, and some of the new limits in MARPOL annex VI stem from the recognition by the international shipping community and the Government that the new limits need to be supported. The limits will help air quality and will also have consequential benefits for human health and for the environment.

[Caroline Dinenage (Gosport) (Con)]

I agree with the Minister—I know many shipping and ferry companies based in my region do, as well—that the intention of reducing emissions is admirable, but there is a twofold concern, which he has already raised. One element is the cost of the changes: one local ferry company has calculated that it will have to spend £320 million on converting its fleet. But it takes three months to convert each ship, and it is those time scales that are of most concern to companies.

[Stephen Hammond]

My hon. Friend is of course right, and she will hear in my speech what I did immediately I became shipping Minister, some 21 months ago, to recognise that. She will also want to hear about some of the work we are now doing with companies to reassure them about how they can minimise costs.

My hon. Friend will also recognise, as did the hon. Member for Kingston upon Hull East, that the Government and the EU are not seeking to impose on the industry something that was announced only today, yesterday, a month or a year ago. The industry has had over six years to get its head around the regulations. Indeed, it is worth reading into the record what the view of the UK Chamber of Shipping was when the proposals were first announced back in 2008. I quote directly from the chamber of shipping’s document:

“The IMO’s proposal to progressively reduce sulphur emissions globally to the equivalent of 0.5 per cent sulphur content in all fuel by 2020, and in designated sensitive coastal areas to 0.1 per cent sulphur content equivalent by 2015, is a major move forward. These realistic deadlines also give the oil industry the time it needs to ensure that the required quantities of low sulphur fuel will be readily available.”

That was its view in 2008, and at that stage it recognised that the time scales were realistic.

A time scale was put in place for reducing the global sulphur limit. There is a separate, staged timetable for reducing levels to the more stringent limit in designated emission control areas. In almost all respects, the IMO MARPOL standards have been incorporated into EU law, in the directive on sulphur in marine fuels. The origin of the requirements does not lie solely in the UK. It is not that the UK Government are placing burdens on the shipping industry; on the contrary, the requirements are part of an international worldwide agreement, stemming from international and European agreements. The industry was fully consulted on those at the time.

I have to say that I am pretty disappointed that the UK Chamber of Shipping continues to react as if the sulphur limits are new and are somehow inherently undesirable, or else that the UK Government should have avoided them. The fact of the matter is that the regulations are about the protection of health and protection of the environment, which is a legal obligation. The UK Chamber of Shipping has been brought into the Government’s deliberations at every opportunity. It is well aware of what the Government can and cannot do legally and of the fact that we have pushed back continually to try to change the time scales.

Again, in 2009 the UK Chamber of Shipping wrote to The Guardian:

“The latest IMO legislation was recognised by governments and the shipping and refining industries as a prime example of ambitious but pragmatic rule-making.”

It recognised that in 2009, so to pretend today that the regulations are something new is slightly disingenuous.

[Karl Turner]

Does the Minister accept that the chamber of shipping is saying that ferry operators are concerned about job losses and about their businesses failing as a result? That is an issue for me, as Member of Parliament for east Hull. Will he address that directly—is there anything he can do as a Government Minister?

[Stephen Hammond]

The hon. Gentleman is right to be concerned. If he waits a few minutes I will tell him directly what the Government have done and are doing now.

The idea that is being put forward today, namely that these are new regulations and a crunch is coming—there is not; there is a date for implementation coming—is not supported by all of the chamber’s own members. On the contrary, some members of the chamber belong to the Trident Alliance, which is a coalition of shipping owners and operators who share a common interest and do not share the views being put across.

I accept that shipping is not the only source of pollutant emissions, but without the controls, polluting emissions from ships will grow significantly because of the reductions made by other modes of transport: unless action is taken, by 2020 shipping will account for more than half of all sulphur emissions in Europe.

As everyone has recognised, the limits undoubtedly pose challenges for shipowners, particularly for those whose ships operate predominantly or exclusively in an emission control area. The Government appreciate that some shipowners, and ferry operators in particular, have raised concerns about the cost of complying with the new limits. From our discussions, we are conscious that the impacts are not spread evenly, and that routes for multipurpose vessels—those carrying both passengers and freight—are likely to see the highest costs. We also recognise the importance of ferries and jobs.

Throughout the whole process we have therefore sought to implement the sulphur limits in a way that maximises the opportunity for the industry to minimise the economic impact. I became shipping Minister in 2012, and immediately in October of that year and again in 2013 I chaired round-table meetings of industry stakeholders, including from shipping, the ports, abatement technology—more colloquially known as scrubbing technology—oil refining and logistics sectors, to consider how we could make sure that people could work to comply with the regulations in a way that minimised regulation and cost. As a direct result, we commissioned a survey to look at the economic costs to industry.

[Penny Mordaunt]

I thank the Minister for what he has done with the shipping sector. Whatever the sector needs, whether it be incentives or a boot up the backside, that work needs to carry on. Does he recognise that it is not just the sector itself that is affected, but the ports and jobs connected to ports? In Portsmouth we are putting a lot of money into our commercial port. Will he give us an assurance today that our ambitions—whether on ferries, cruise liners or freight—will be able to be met if the directive is implemented?

[Stephen Hammond]

I certainly hope to be able to do that by the end of my speech, and to explain some of the things we are doing. Portsmouth, like so many other places, including Hull, has a booming port industry. There is a renaissance, particularly in my hon. Friend’s port and in my home town of Southampton, from where there are huge exports, the like of which would not have been dreamed of 15 years ago. That is a tribute to the port industry, which is now a great success.

As a direct result of the round-table discussions, which were also about commissioning work on the economic costs, I immediately contacted the Secretary-General of the IMO and made exactly the point that the hon. Member for Kingston upon Hull East made: we must not wait for a review of the 2020 regulations, but should start a review immediately. I persuaded the IMO that it should start the review promptly following the implementation of these regulations.

Another outcome of the meetings is that the Government are looking at ways of helping the industry. My officials have been working closely with the UK Chamber of Shipping—which is why I am so disappointed—for a considerable period. We have solicited an assurance from the European Union that it will meet individual ferry operators who approach it to discuss a route to compliance. I accept that there are important issues to address, but both those things are a major step forward in helping the industry with the prospect of the regulatory burden.

One question is whether, as ships are encouraged to use fuels with a lower sulphur content, there will be sufficient fuel available. That is why the review is so important. It is equally important to look at other issues. Do we have an opportunity not to implement the sulphur limits? No, we do not because we would fail to meet international treaty obligations. More than that, we consistently spoke to EU fellow nations, none of which was prepared to deflect or move away from the time scales. If we do not implement the new limits, non-compliant UK-flagged ships will still be subject to enforcement action at UK ports. We do not have the opportunity or option of avoiding the limits. We cannot delay implementing the limits even on vulnerable routes. There is no exemption and that is why we have worked with the EU to allow ferry operators to discuss flexible implementation.

We held extensive discussions with other north European states that will be affected by the limits that will apply in the North sea. We pressed for exemptions for vulnerable routes, but there was no support from other members. The Government have not only pressed the case for ferry operators directly with the EU, but negotiated with other countries.

Shipowners have the option of installing scrubber technology or the exhaust gas cleaning system and we have been working with them on the cost of those systems. I recognise that significant capital is required and the Department is exploring the scope for securing EU finance under the trans-European network programme and affordable capital from the European investment bank for shipowners and ports that want to benefit from investment in that green technology.

The hon. Member for Kingston upon Hull East referred to a possible modal shift from sea to road and the identification of total fuel costs. Again, we are consulting on draft UK legislation. Part of that consultation is directly about the cost, but if we look at whether the implementation of the 0.1% sulphur limit will lead to a rise in costs for motorists, even if every ship in the emissions control area used 0.1% sulphur fuel rather than the abatement technology, we see that would still be less than 10% of the total market for middle-distillate diesel fuel. There will be a potential cost for motorists, but it will not be as great as stated. It is highly unlikely that every ship will use that. Many will use the scrubbing technology and I hope that the Government will be able to secure EU finance to enable shipowners to make transitional arrangements.

We have also been discussing with the industry our plans for applying a much more pragmatic approach to enforcement. It is important that enforcement is consistent and fair. My officials have already discussed with other member states and the Commission how to ensure a fair and consistent approach throughout the EU, so that services from UK ports are not unfairly disadvantaged.

It is important to look beyond compliance with the limits in the control area. I have been working closely with the Secretary-General of the IMO on the availability of 0.5% sulphur fuel in 2020, which will be the next challenge. l am pleased with the leadership that the UK has shown. We have been prominent, with the support of the Dutch and the Americans, in ensuring that the IMO is committed to engaging constructively and undertaking an early review.

There is no doubt that the sulphur limits are coming in in 2015 and prospectively in 2020. However, if the review shows that the fuel is not available, I will certainly negotiate with the IMO to push that limit back because it would be unfair to impose that on the industry. This Government and, to give them credit, the previous Government have worked with the industry to find ways of mitigating the cost and the regulatory burden and to ensure that jobs in this country are protected. That is why we are working to secure finance and transitional arrangements for people to implement scrubbing technology.

I hope that I have been able to reassure my hon. Friends and the hon. Gentleman that the Government, unlike the image that might have been presented, are taking the matter extraordinarily seriously. We have done so during my time in office and before. We have actively worked to support British shipping and the all-important jobs that come with it.

Question put and agreed to.

Bus Services

Stephen Hammond Excerpts

Tuesday 17th June 2014 Westminster Hall

[The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)]

It is a great pleasure to serve under your chairmanship, Ms Dorries. Thanks to the Members who made the excellent contributions that we have heard, we will finish by the time at which we hoped to finish.

I congratulate the hon. Member for Corby (Andy Sawford) on securing this debate on the availability of bus services. I will touch on many elements of his speech, and I will answer a couple of his questions directly. I now feel so much more knowledgeable about Corby bus services. He undoubtedly has weeks of press releases and leaflets planned, and I congratulate him on his speech. I also recognise the contribution of the hon. Member for Strangford (Jim Shannon), who rightly pointed out that a number of issues affect not only the mainland but his constituency. He made a long speech, and he accepts that some of the issues are not necessarily under this House’s jurisdiction.

The hon. Member for Houghton and Sunderland South (Bridget Phillipson) and I obviously differ on quality contracts; she will not be surprised about that. My view is that they are a race to the bottom—to poorer services and higher costs. She spoke about services being withdrawn, but any operator has to give 56 days’ notice before a service can be withdrawn. The overall thrust of the Competition Commission’s view, as she will want to recognise, is that the bus market is working well.

I recognise that buses play a vital role in our economy, as any look will show. In England, more than 2.2 billion journeys were made on local buses outside London last year. That number is broadly flat; it is down about 1% on the year before, which is absolutely in keeping with the trends that we have seen since 1997.

[Bridget Phillipson]

Notwithstanding what the Minister has just said about our difference of opinion on quality contracts, does he respect that local decision-making bodies should be able to introduce schemes that they think best serve the needs of local areas? Will the Government continue to offer support on that?

[Stephen Hammond]

I accept the proposition that locals know what is best for their area, if they wish to go down that line. The hon. Lady will not be surprised to hear that Ministers would probably express the view that that would be ill-advised. I will continue to express that view, but it is for local areas to make that decision.

If we look at ridership numbers since 1997, and indeed at the broad sweep since the second world war, we see declining ridership on buses, but more than 60% of all trips on public transport are still made on local buses. Some 49% of bus trips outside London are made by people who do not have access to a car. Buses are, of course, essential for many people to get to work, education, doctors and hospitals. The bus is a lifeline for many people, particularly in rural areas. Without the bus, those people would be unable to access essential services, go shopping or socialise.

Yet if one listens to the hon. Member for Blackpool South (Mr Marsden), one hears an attempt to portray a network that has fallen apart. Inconveniently, as I have just pointed out, some of the facts do not bear that out. As he will have wanted to acknowledge, the falls in ridership numbers were severe under a regulated regime. Between 1997 and today, the annual fall in ridership, as a percentage, has been almost the same every year. The idea that there has been a complete collapse in bus ridership since 2010 is simply false.

Combined with that is the fact that customer satisfaction with bus journeys is high. In all national surveys, 88% of passengers say that they are satisfied with the service. It is important to recognise, in looking at that number, that under-21s make up about a third of bus passengers, and use among the older generation has increased over the past few years, as the hon. Gentleman would want to acknowledge.

[Mr Marsden]

I accept that bus satisfaction is high, but that prompts the question of whether people are satisfied because they are able to get a bus in the first place. The point that my hon. Friends and I have made is on the disproportionate effect of the coalition’s cuts on key vulnerable groups. The Minister will not find statistics that gainsay that point.

[Stephen Hammond]

The Minister certainly will. I am happy to read out the ridership numbers, but there is nothing in those numbers that suggests there has been an increasing rate of decline in bus use since 2010. That is simply true. I am happy to check my facts in the Library. I have the numbers before me, and I can read them out if the hon. Gentleman wants them. The fact of the matter is that the numbers do not support his argument.

It is true, of course, that bus usage and access to buses are important for a healthy, growing economy. The recent survey by the university of Leeds reinforces that point. Bus commuters generate some £64 billion in economic output, and one in five journeys is a journey to work. Shopping and leisure trips generate annual value of some £27 billion.

The Government, far from what is suggested in some portrayals, remain committed to improving bus services, and expenditure on buses reflects that: 42% of all bus operator income comes from public funds. This year, the Government will spend more than £1 billion on concessionary travel entitlement and more than £340 million in direct subsidy to bus operators in England. More than £300 million has been allocated to funding major bus projects in the last year; that is on top of the provision through the better bus areas fund to deliver improvements in 24 local authorities, which cost more than £70 million, and the £20 million to support community transport. Many bus improvement schemes have also been funded as part of the £600 million local sustainable transport fund.

A total of £95 million has also been provided for four rounds of the green bus fund to improve environmental performance. We are also jointly funding a three-year project with Norfolk county council to determine a delivery model for smart ticketing across England, recognising that smarter ticketing will continue to drive easier access. In the 2013 spending review, we protected bus spending until the end of 2015-16, despite the current economic circumstances. All that demonstrates a commitment that was not recognised in some of the contributions.

The Government recognise that improvements can and must be made. In 2012, our document “Green Light for Better Buses” set out our plans for buses. The proposals included reforming bus subsidy, improving competition and incentivising partnership working. The hon. Member for Corby gave a clear example of what partnership working can deliver in his support for Stagecoach, some of the services that it is delivering, and the way that it has improved a number of them. Improving partnership working is increasingly important.

There is no doubt that these are challenging economic times. Government and local authorities have had to make difficult decisions about some spending priorities, but we want to ensure that the bus market is still attractive to all operators—large and small, urban and rural—by ensuring that funding is allocated in the fairest way, giving the best value for taxpayers and ensuring the best service.

[Andy Sawford]

For the record, the services that I mentioned have not improved; they have been reduced significantly. My praise for Stagecoach relates to it having worked with me to keep as many buses on the road as possible. If the Minister’s argument rests on saying that rider numbers are not declining any more steeply than in previous years, it is a pretty disappointing argument. The Minister for Transport ought to set out a vision of how to improve public transport. People still need to get to work, of course, as my hon. Friend the Member for Houghton and Sunderland South (Bridget Phillipson) illustrated; they now just have to wait for an hour, or two hours, and struggle to access bus services that should be much more reliable and available.

[Stephen Hammond]

As I am sure the hon. Gentleman will have noticed, I remarked a moment ago that we have set out a vision for how to improve bus services throughout this country and a view on how we can ensure better services in various areas. I will make some remarks about rural buses in a moment. However, neither he nor I can ignore the trend of declining ridership, whereas for the deregulated rail service, ridership has doubled since privatisation. The idea that we can simply ignore the numbers is not true.

The bus service operators grant has been paid directly to bus operators. To be fair, it has been paid for many years in a blunt and relatively untargeted way based on fuel consumption. Local authorities have told us that they can make the bus subsidy deliver better value for money by working in partnership with bus operators to grow the bus market. As several hon. Members have pointed out, the characteristics of local bus markets differ, so different solutions will undoubtedly be appropriate in different local areas. The Government therefore believe that it is for local authorities to decide which route to pursue. This year, £43 million in BSOG funding will be paid directly to local authorities rather than bus operators; that will relate to the services that councils fund. That will give communities more control over how the money is spent. The funding is now ring-fenced until the end of 2016-17 to provide a period of stability.

The hon. Member for Corby asked several questions, one of which involved concerns about the quality of Centrebus. He will know that all vehicles must meet the relevant standards for roadworthiness enforced by the Driver and Vehicle Standards Agency. If he has any concerns about that, I will be delighted to help him ensure that the DVSA undertakes that operation. He also discussed the poor reliability of service. Again, that is entirely a matter for the traffic commissioner; I encourage him and his constituents to raise any concerns with the traffic commissioner, who has powers to take regulatory action against operators that are failing to deliver the service that they are contracted to deliver.

The Government are also committed to protecting the national bus travel concession, which is of huge benefit to about 11 million people, allowing free off-peak local travel anywhere in England. The concession provides older and disabled people with greater freedom, independence and a lifeline to their community. It enables access to facilities in local areas, helps them keep in touch with family and friends and brings benefits to the wider economy. The issue of young people’s travel and fare levels is complex. There is no statutory obligation to provide discounted-price travel to young people. Many commercial and publicly funded reductions are available.

Bus services in rural areas do not depend only on public funding. Commercial operators will provide services in areas where there are enough passengers, and overall commercial mileage in very rural areas of Britain has increased rather than decreased over the past year. However, the Government accept that where commercial services are not feasible, local authorities must and do play a vital role in supporting rural bus services. Almost 30% of bus mileage is in predominately rural authorities, and it is therefore for local authorities to decide what is the best support to put in place in response to local views.

It is vital that local authorities have the opportunity to maximise the funding that they provide. To help with that, last year my Department met its commitment to publish revised guidance to local authorities on best practice when procuring local bus services and other types of road passenger transport. Although I recognise that a lot of innovative and hard work is done by councils all over the country, there is certainly scope to do more. The best practice document sets out some really good practice and highlights some of what local authorities can achieve.

Providing bus transport solutions in rural areas can be challenging. Undoubtedly, the traditional fixed-route service operating to a timetable cannot be and has not always been appropriate. The combination of lower passenger numbers and longer journeys can also put pressure on funding. That is why many local authorities, learning from best practice, are considering other solutions, whether they involve supporting community buses provided by voluntary services, dial-a-ride or other types of demand-responsive transport such as taxis and minicabs. My Department is undertaking further work to examine the barriers to procurement of better types of service, and we are committed to ensuring that that knowledge is spread through the industry.

In conclusion, this Government believe in buses. Since 2012, we have set out a clear vision for a better bus service with more of what passengers want: punctual, interconnected services, greener and more fully wheelchair-accessible buses, and widely available smart ticketing. That will encourage more passengers to use the network, cut carbon and encourage economic growth.

Water Safety

Stephen Hammond Excerpts

Tuesday 17th June 2014 Commons Chamber

[The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)]

I congratulate the hon. Member for Washington and Sunderland West (Mrs Hodgson) on securing this debate. Let me say at the outset that I am aware of the tragedy that happened last July in her constituency, and the Government very much sympathise with the families of the two girls involved. The hon. Lady is right to say that the incident highlights why we must do all we can to raise awareness of the dangers of water, and the measures we can and are putting in place to ensure that such an incident does not happen again.

I am responding on behalf of the Government as the Minister with responsibility for maritime issues, but as the hon. Lady pointed out, water safety and drowning prevention are not topics that fit neatly within the remit of any single Department. Having heard her speech, I, like her, rather wished that an Education Minister was responding. The Department for Culture, Media and Sport, for example, actively promotes participation in water-related sports and activities. The Department for Education promotes water safety awareness and swimming through the national curriculum. The Department for Communities and Local Government has a role to play through local authorities, which have responsibility for beach safety and act as navigation authorities for some of our inland waters. The Department for Environment, Food and Rural Affairs has a role in the management of many of our inland waters through bodies such as the Environment Agency and the Canal & River Trust. The Health and Safety Executive, within the Department for Work and Pensions, also has a clear interest where the worlds of water and work come together.

Alongside all those Departments and agencies is a whole host of non-governmental groupings, sport governing bodies and charities that make up a matrix of interested parties with a role to play in supporting water safety and the prevention of drowning. My own Department’s primary interest is through the excellent work of the Maritime and Coastguard Agency, which includes Her Majesty’s Coastguard. That agency’s regulatory role focuses on the safety of commercial shipping and fishing operations, but most of the search and rescue incidents with which Her Majesty’s Coastguard deals are firmly rooted in recreational activities such as boating, sailing, enjoying our beaches, swimming off coasts and walking our fantastic coastline. It follows that encouraging people not to get into difficulty in the first place—prevention of the wider sort that the hon. Lady mentioned—is by far the best approach, which we encourage across the whole of Government.

More than 200 Members of this House represent coastal constituencies and will doubtless join me in encouraging the general public to get out and about and have fun near the water. According to Visit England, in 2012 there were 147 million day visits to seaside and coastal locations across the whole of Great Britain, and inland we have lakes, canals and other stretches of accessible water that the public can enjoy. However, that enjoyment is enhanced if people take personal responsibility for their own safety, understand the difficulties and dangers, treat water with the respect it deserves, and understand what they can do to have fun and stay safe.

My Department and the Maritime and Coastguard Agency have supported the work of the National Water Safety Forum, an umbrella body that brings together all those promoting water safety messages, including expert organisations such as the Royal Society for the Prevention of Accidents, the RNLI, the Royal Life Saving Society, the Canal & River Trust, the British Sub-Aqua Club, British Swimming, the Chief Fire Officers Association and many more. For many years, my Department has made a financial grant to that forum through the Royal Society for the Prevention of Accidents, which provides administration and governance support. That funding has facilitated the development of the forum and allowed it to mature into a body that shares understanding of statistical information and data, and uses that to help local authorities, sport governing bodies and lifesaving organisations plan their own safety communications. As the forum matures and shows its worth, so its membership are increasingly making a financial contribution to the forum, because they recognise that it is a body in which they can all share best practice.

The National Water Safety Forum recognised that there were different databases capturing different levels of information about water-related incidents. The hon. Lady referred to a number in her speech. The information that is recorded by the MCA on national search and rescue records, for instance, is different to that recorded by the RNLI and other rescue services. What was needed and has now been put in place is a single database that commands the confidence of all the bodies that contribute to it and use it. That has been achieved through the water incident database, which, as the hon. Lady knows, is known as WAID. It provides a single version of the truth and has captured information about fatalities and all water-related incidents since 2007.

The hon. Lady mentioned a number of inland fatalities. In 2010, the number of water-related fatalities was 420. Thanks to WAID’s initiative and the communication plans of its umbrella bodies, the message started to take hold. The number of fatalities has dropped quite dramatically and continues to fall, and it is now 50 fewer than it was two years ago. We need to do more, but the trend is going in the right direction.

Analysis shows that most of the water-related fatalities occur in rivers, followed by at the coast and then in the sea, and that is exemplified by the sad incident that the hon. Lady has described. The most common activities that people are engaged in when tragedy strikes are walking, running, swimming and, in some cases, angling. A major campaign, which has been run and targeted at people who are close to rivers or water, involves the promotion of the wearing of lifejackets. The seas around the UK coast are cold. Professor Mike Tipton, a leading academic in this field, has shown that the first and most immediate danger to people in the water is not the drowning, but the sheer cold water shock, which then leads to drowning. Wearing lifejackets on rivers and at sea buys time and keeps people alive until they can be rescued.

[Mrs Hodgson]

I do not want to pre-empt anything the Minister might say with regard to education, and I am aware that he is not an Education Minister, but is he able to comment on the Royal Life Saving Society’s campaign and its calls for Government action, or will he commit to meeting the Education Minister to take the matter forward?

[Stephen Hammond]

I will touch briefly on education. We certainly welcome what the Royal Life Saving Society has said, and we recognise that next week is national drowning prevention week. I will commit to asking my colleagues in the Education Department to reply to the hon. Lady more fully if my remarks do not provide her with the answers that she wants.

Many agencies have a strategy for safety. The MCA, for instance, focuses on very simple safety messages, urging those going on the water to get trained, check the weather, wear a lifejacket, avoid alcohol and make sure that someone else knows what they are going to do. Volunteer coastguards are based in their local communities, and they spend a lot of their time putting those messages across to schools and community groups, and the MCA uses its presence on social media, such as Facebook and Twitter, to do the same.

In January this year at the London boat show, I was pleased to support the Royal Yachting Association’s launch of its safety advice notices, encouraging safety in boating, yachting and sailing communities. It used the style of language that was right for its target audience. The RNLI has a proud record of heroism at sea and it holds a special place in British maritime tradition. It has run an excellent campaign called “Respect the Water,” the thrust of which is to encourage people to take care when they are near rivers or near the shore and to make sure that they are properly trained.

Six years of evidence shows, unfortunately, that one of the major causal factors in fatalities, particularly in young men, is alcohol. A number of organisations are sending out the message that people should not take alcohol and play around by the water, because that can have serious consequences. We welcome similar efforts by the RLSS, which include drowning prevention week next week. The prevention of drowning is a shared responsibility in every sense. As I undertook a moment ago, I will ensure that one of my colleagues in the Department for Education responds more fully to some of the points that the hon. Lady made about education.

We all want people to enjoy our beaches, our coast, the seas and the inland waters. However, we want them to understand the dangers, take responsibility for their safety and heed the advice of the many experts in the area. The RNLI’s mantra, “respect the water”, is spot on. The Government will continue to support and encourage safety awareness and swimming in the national curriculum. We support the efforts of the National Water Safety Forum to ensure that people understand the greatest risks and to promote the campaign for safety, so that tragic incidents such as the hon. Lady described at the start of her speech will become an increasing rarity.

Question put and agreed to.

TransPennine Express and Northern Rail Franchises

Stephen Hammond Excerpts

Monday 9th June 2014 Written Statements

[The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)]

Today I have published a consultation document on the future of the TransPennine Express and Northern rail franchises. I have also published the prospectuses for both the TransPennine Express and Northern franchises. These accompany the pre-qualification documents published on 6 June 2014 and an Official Journal of the European Union (OJEU) notice submitted for publication on 5 June 2014. These steps mark the start of the formal competitions to find new operators to run passenger rail services in the two key rail franchises in the north of England.

There have been great improvements in the railways nationally and regionally since privatisation. We have seen record growth in passenger numbers, achieved much higher levels of passenger satisfaction and one of the best safety records in Europe. This growth has been particularly strong in the north of England with both franchises experiencing greater numbers of passengers than predicted when the franchises were last let. We want to continue to build on this and to deliver excellent railway services for passengers across the region, providing value for money for both passengers and taxpayers.

The public consultation invites views from the public and from stakeholders on the improvements to service levels and facilities that passengers may wish to see, in order to provide a railway that supports the growth in passenger numbers we expect to see and delivers the wider economic benefits it is capable of. This Government have committed to a major programme of investment in the rail infrastructure in the north of England. The projects currently under way, such as the £600 million “Northern Hub” schemes, will allow substantial increases in capacity, improved journey opportunities and cleaner and more efficient operation through route electrification.

We will be seeking to deliver these benefits through the TransPennine Express and Northern franchises, while also securing significant efficiency improvements to ensure the taxpayer benefits, and we welcome views on the best way to achieve this.

We want to ensure that the Northern and TransPennine Express franchises we deliver best serve the needs of the people that will use them. To that end we are working closely with Rail North, a new body bringing together the local transport authorities across the whole of the north of England, in the development of them. This consultation is being carried out jointly with Rail North and aims to capture the views of the wide range of stakeholders in the region.

We are confident that our developing partnership with Rail North will help to bring a stronger local focus to the two franchises. Through this, and the skills, investment and innovation brought by the successful bidders, we can deliver a top-class railway for the north of England.

Northern Lighthouse Board and Trinity House (Triennial Review)

Stephen Hammond Excerpts

Monday 9th June 2014 Written Statements

[The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)]

On 12 December 2013, I announced the commencement of the triennial review of Northern Lighthouse Board (NLB) and Trinity House (TH). Today, I am pleased to announce the conclusion of the review and the publication of the report.

The review was conducted in accordance with Cabinet Office guidance (Guidance on Reviews of Non-Departmental Public Bodies, June 2011).

NLB and TH were involved at key stages of the review, and the findings of the report have been discussed with both bodies. The key conclusion is that the primary function of the General Lighthouse Authorities (GLAs) (i.e. the provision of marine aids to navigation) is still necessary and that this is best delivered through the NLB and TH as non-departmental public bodies (NDPBs).

The review also identified a number of measures which, if implemented, should improve the bodies’ governance transparency and accountability. The Department for Transport will be taking these recommended measures forward in discussion with the GLAs over the coming months.

I would like to thank the GLAs for their assistance, and all those stakeholders who were involved during the course of the review.

The final report of this triennial review can be found on the gov.uk website: http://mrws.decc.gov.uk/ and I have made available copies in the Libraries of both Houses.

Ministerial Correction

Stephen Hammond Excerpts

Tuesday 13th May 2014 Written Statements

[The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)]

I would like to inform the House that a statement I made on 29 April 2014 during an adjournment debate on proposed Government reforms to taxi and private hire vehicle regulations, Official Report, column 225WH, was incorrect. During the speech I stated that:

“the Government asked the Law Commission to carry out a comprehensive review of the law. As has rightly been pointed out, it will present its report—it will not be presenting a Bill; it will be presenting a report in the next few weeks—and at that stage, as with all reviews and reports, the Government will review the whole of those detailed findings and recommendations.”

This was incorrect as the Law Commission will later this month present the Government with both a comprehensive review of taxi and private hire legislation as well as a draft Bill. However, the Government have no plans to introduce a dedicated taxi Bill in the final parliamentary Session. Instead, Government will consider the detailed findings of, and recommendations made, by the Law Commission before setting out our thinking on each in due course.

Given there will be no dedicated taxi Bill this Parliament, the measures which the Government intend to take forward within the Deregulation Bill represent an ideal opportunity to make a real-world difference to the business men and women who make up the taxi and private hire vehicle trades.