The Parliamentary Under-Secretary of State for Transport (Norman Baker)
I begin by congratulating the hon. Member for Nottingham South (Lilian Greenwood) on securing this debate on transport infrastructure for Nottingham and the surrounding area, and on the comprehensive and persuasive way she put her case this afternoon. I am aware that she made her maiden speech in the House a few weeks ago and mentioned both the A453 and the Nottingham tram. I am now pleased to be responding to her first Adjournment debate on a subject that is clearly of great importance to her, to other hon. Members and to her constituents.
No one doubts that an effective and efficient low-carbon transport infrastructure can help to support economic development and help to tackle climate change. Unfortunately, securing these outcomes in our current economic climate is challenging to say the least, but I am confident that we can meet these challenges and still deliver transport infrastructure that works for economy and the environment. I draw the hon. Lady’s attention to the coalition Government’s statement, to which she referred in her opening remarks, in which we have made clear our commitment to a modern low-carbon transport infrastructure as an essential element of a dynamic and entrepreneurial economy. She may also have noticed that light rail is specifically mentioned in the agreement. But we have also identified the pre-eminence of the deficit reduction programme at this time. The decisions that we take and the speed with which we are able to implement transport improvements will need to be determined in the light of the comprehensive spending review.
The hon. Lady asked about the criteria for assessing major projects, and I shall come to that point in a moment. She asked when and who will make decisions. Initially, the Treasury’s comprehensive spending review will tell us how much money the Department has in crude terms, and we shall then use the criteria to take the decisions. I am conscious of the uncertainty not just in Nottingham but across the country. We want to get a move on and give people clarity as soon as we possibly can.
The Department for Transport is playing a full part in the spending review that will report in the autumn. We have already announced a range of measures aimed at delivering reductions in spending. On 24 May, the Chancellor of the Exchequer and the Chief Secretary to the Treasury gave details of savings of £6.2 billion in Government spending in 2010-11. The Department for Transport is contributing to those savings, which has meant taking difficult decisions on funding and deferring decisions on schemes, including the A453, until after the outcome of the spending review.
Last Thursday, the Department for Communities and Local Government published further details about local government savings, including £309 million that the Department for Transport had identified in respect of local transport. In making those reductions, however, we have maximised flexibility for local authorities to reshape their budgets according to local priorities and to identify where efficiencies can be found. Given current financial constraints, it is essential to ensure that any new infrastructure is affordable and offers value for money.
On the criteria for assessing major projects, the hon. Lady may be interested to learn that my Department is committed to reforming the way decisions are made about which transport schemes to prioritise across the country. We are looking at the formula used to assess transport schemes so that the benefits of low-carbon proposals are fully recognised. We hope that work will be complete to coincide with the outcome of the comprehensive spending review so that we can take sensible decisions at that time.
Before I respond to the hon. Lady’s specific points, I acknowledge Nottingham city council’s high reputation as a transport authority. It has successfully managed major innovative projects, including the building of the tram. It is a beacon council for accessibility and has taken great strides in managing congestion in the area, as the hon. Lady pointed out. By August 2009, vehicle journey times during the morning peak had been reduced by almost 7% on baseline figures.
The Greater Nottingham transport partnership provides a good example of bringing together the private and public sectors to promote understanding of and support for the integrated vision contained in the joint local transport plan. From that partnership has come the “Big Wheel” marketing campaign, which has worked successfully to influence the use of sustainable transport options.
Nottingham City Transport picked up the winning new customers award at the 2009 UK bus awards, and in May this year the biggest, and first area-wide, statutory bus quality partnership was launched. Nottingham has seen year-on-year increases in bus and tram use. There are now 47 million bus passengers per year in Nottingham and 10 million tram passengers. With that base from which to work, I am confident that Nottingham City Transport is in a strong position to respond to the difficult financial climate we are now facing.
I understand the concerns expressed on both sides of the House about the decision to defer spending for the A453 scheme until the next comprehensive spending review period. I do not want to introduce a note of discord, but I point out gently to the hon. Lady that the previous Government had 13 years to do something about the road, but did not. She might bear that in mind as we consider how to go forward.
Following consideration of the scheme orders for the A453 at the public inquiry in 2009, the inspector’s report was submitted to the Secretary of State for consideration. However, no decision on the inspector’s report and the scheme orders can be made until there is clarity about the availability of funding for the scheme following the forthcoming spending review. As the scheme is subject to statutory procedures, I hope the hon. Lady will understand that I cannot, for reasons of propriety, discuss the merits of the A453 project in the Chamber this evening. I can assure her, however, that the scheme will be given due consideration alongside other proposals. Her comments and those of other Members are noted.
On the proposed tram extensions, the Government announced last week that we would consider schemes funded through the regional funding allocation process as part of our commitment to review the way funding decisions are made on which transport projects to prioritise. However, as the hon. Member for Nottingham East (Chris Leslie) said—I nearly called him the hon. Member for Shipley—the Nottingham project is slightly different. The extensions to the Nottingham express transit tram scheme are proposed to be funded almost entirely through the private finance initiative. The Government, through the Treasury, plan to make an announcement shortly on how we are dealing with PFI schemes, and it may be that more clarity can be given on the tram scheme at that point.
I would just say that the feeling I have picked up from speaking to Members on both sides of the House is that whether people were for or against the tram, there is acceptance—the route has been planned, it has been accepted, it has been established, and the issue now is really one of cost and finance rather than anything else.
Chris Leslie
It is entirely correct that it feels very much as though we have come so far—on the planning process, the commitment of all the legal fees and the consultancy fees, getting through the planning inquiries and so on—that it would be such a shame to decide not to progress at the eleventh hour, particularly when, as I said before, this scheme may not be so burdensome in its public borrowing aspects as perhaps others would.
Norman Baker
I do understand that point, and I am sure it is frustrating for Members all across the House, looking at various schemes in their own patches, to see this delay. I stress that it is a delay, rather than a cancellation—simply a deferral of schemes. We do want to get decisions as soon as we possibly can on all these schemes, but as to whether the PFI is good value for money, that is above my pay grade. It is a matter for Treasury Ministers to decide, although obviously the comments that the hon. Gentleman and others have made will be picked up and relayed to my colleagues in the Treasury.
I should record that the tram has been successful, carrying 38 million passengers—well above the projected figures. That is also a matter to take into account in looking at the future. So I can assure the hon. Member for Nottingham South that the Department understands the potential for trams, in the right conditions, to deliver a high-quality public transport alternative to the car. I believe that, as she rightly says, we have underplayed the potential of trams, and light rail in general, in this country. I am conscious that proposals have failed in the past, usually on the basis of high cost. She may like to know that I have asked officials to look at the reasons for the high cost of tram schemes, and to see whether there are any ways to reduce those costs to make trams a more affordable option in the future, particularly given the likely pressures on budgets following the spending review. That work is being carried out in the Department, coterminous with the work carried out in the Treasury, so that when the smoke has cleared, light rail will be in a position to benefit, potentially, from the new arrangements post-review.
As I mentioned earlier, the Department is taking forward work to deliver the coalition agreement commitment to ensure that low-carbon benefits of schemes are fully recognised in the transport appraisal decision-making process.
The hon. Lady mentioned the workplace parking levy, and of course it has been seen that the tram extensions proposed are closely linked to the plans for a workplace parking levy to be implemented in Nottingham, although of course there is no requirement for them to be so and it is open to the city council, if the tram did not go ahead, to introduce that levy if it wished to do so. Workplace parking levies are one of a range of measures available to local authorities for improving local transport and tackling congestion. Nottingham city’s plan to implement a levy is very much in accord with the coalition’s localism agenda, and I want to make it quite clear from the Dispatch Box tonight that whatever individuals in the House think about that levy, our view is that it is entirely a matter for the local authority to decide whether that goes ahead or not; it is not a matter for the Government to intervene in.
The hon. Lady also mentioned the Nottingham rail hub and improvements to Nottingham station. I know that work is in hand to develop plans and prepare for improvements in Nottingham railway station and the surrounding areas under the Nottingham hub scheme. That includes work to complete the necessary agreements to enable the scheme to proceed. I should deliver the usual health warning about the current financial climate, which the hon. Lady is well aware of, and the fact that we cannot offer assurances at this particular time about taking forward a scheme, although, as she referred to the contribution from the regional development agency, I would just say that obviously if the scheme could be reduced in cost in some way, that makes it more likely to proceed. I hope she might take that message back to colleagues and others in Nottingham. We in the Department do believe, however, that it is a good scheme, which has the potential to deliver wider benefits, including the regeneration and employment benefits that the hon. Lady mentioned, in addition to improving transport links in Nottingham.
It is clear that we face a challenging period. Tough decisions to tackle the UK’s budget deficit have been necessary, and they are ongoing. I appreciate, however, that it is not easy for people to see schemes with considerable local support, that have been in development for many years, being put on hold and given an uncertain future. The Government have identified that the most urgent priority is tackling the deficit, and the Department for Transport must play its role in that process. The Department will be in a position to identify major investment that can be supported only after the Government’s spending review has been concluded. In a period in which we face tight financial restraint, it is essential that we take a step back and consider which schemes should be prioritised. That is the only way we can put ourselves in a strong position to make the best use of available funds and to establish a strong base for the future development of the transport system.
I would not want the hon. Lady to go away from the debate with a negative impression, however. We face challenges, but we have a strong approach to address them, and the Department wants to work to deliver outcomes that meet national and local needs, and to improve the country’s transport infrastructure. We are keen to use whatever tools we can to achieve that.
I thank the hon. Lady for the invitation to visit Nottingham, which I shall be happy to accept, because a tram ride with her is an irresistible suggestion. I look forward to seeing some of the excellent schemes that Nottingham city has been delivering.
Question put and agreed to.