Railway Expansion

(Limited Text - Ministerial Extracts only)

Wednesday 27th April 2011 Westminster Hall

[John Pugh]

I suggest that the ratio is 10:1, and perhaps an hon. Member will correct me if I am wrong. I speak with some bitterness, because I spent two years discussing the Crossrail Bill. Its Committee stage was one of the longest in the past 50 years, and it was pure endurance, but one could not help being impressed by the scale of what was being attempted, although there were days when one thought there were better uses for one’s time. It is an engineering marvel, and will link the bankers of Canary Wharf with their planes at Heathrow. I am not against that, but London is already probably the best connected capital in the world, and it already has a tube and bus network that is the envy of every other city in the UK. I genuinely doubt whether London’s contribution to UK plc will be massively affected whether or not we build Crossrail on the most expensive real estate on the planet, with all that is involved. If the bankers of Canary Wharf, like their Venetian counterparts, are forced to take a vaporetto along the Thames, life would not be greatly worse for the nation or the economy.

[The Minister of State, Department for Transport (Mrs Theresa Villiers)]

I cannot help intervening. Does the hon. Gentleman accept that the coalition has embarked on the biggest programme of rail capacity expansion in modern history, which includes significant projects in the north of England, not just electrification, but most recently the announcement that the Ordsall chord scheme has had the go-ahead? That will provide significant benefits for people living in cities throughout the north of England.

[John Pugh]

I am not saying that the Government have done nothing. I am saying that, like all Governments previously, they have in the pending tray schemes on which they have reached no rational conclusion or that have not been investigated thoroughly, and many of them are in the north-west. Even taking into account the investment in the north, which I welcome, applaud and wholly support, the proportion of that investment—the Minister may contradict my figures later—compared with the proportion anticipated for London, including Crossrail and the Thames Gateway, does not chime with the general drive to rebalance the economy.

I accept that there is a problem with overcrowding in London. Anyone who travels on the Northern line at certain times of day will testify to that. However, that is largely because London’s population is always swelled by the enormous number of people coming here every day by train, not because they cannot do business elsewhere, but because getting into and around London is already quite easy for business purposes. It is not easy absolutely, but it is easy compared with many other places.

Anyone who takes a few cross-country journeys by rail, such as from Reading to Liverpool or somewhere that is not on the London axis, knows how difficult they are. Although there has been investment in the north, we often have regurgitated rolling stock that the south-east does not want or has finished using. The bulk of the new rolling stock is coming to the Thames Gateway and the London area, but in Lancashire—the hon. Member for Blackley and Broughton will agree—we have the most appalling, aged rolling stock rolling up and down the northern line with no immediate improvement in sight. We have not gone as far as I would like in doing something about regional inequality in transport investment. If I transpose in my mind any of the schemes to which I have alluded and imagine them happening in London and the south-east, I conclude that they would take less time.

The Burscough curve is my scheme of first preference. There are two stations, half a mile apart, in a growing, substantial dormitory town. Trains of two major franchises cover two city regions: Merseyside and Preston, as well as central Lancashire. Those two conurbations have been identified as being poorly linked by transport, but linking those two city regions requires only half a mile of track. If that were the case in Southwark, Kensington, Walthamstow, Richmond or the Thames Gateway, I have no doubt that it would have been funded and done years ago. Colleagues may play the game for themselves with their own pet schemes. What is a no-brainer in London is often a half-century campaign elsewhere.

A simple example with which some hon. Members will be familiar is the snarl-up between freight traffic from the docks and passenger transport trains from Liverpool Lime Street station. That went on for a long time, and arose simply because of the failure to put in the Olive Mount chord. It was wholly supported by all the economic interests in the area, and it has now been done, but I genuinely believe that it would not have taken the same length of time had it occurred at Felixstowe, near Tilbury or elsewhere in the south-east.

I am encouraged by the pre-election support of the Under-Secretary of State for Transport, my hon. Friend the Member for Lewes for smaller schemes. I am heartened by the Secretary of State’s view that even in times of austerity it is sensible to sustain capital investment in transport, and that is what the Government are doing. I am restrained by due and proper caution with regard to some of the schemes, their costs and so on, but we can all travel in hope and never arrive. The Department can set out clearly what it can achieve, or it can simply wash its hands of the matter and put it down to local decision making. I have given reasons why that is not the best outcome.

I want to address the real problem of institutional inertia. We would never have found out that passengers do not suffocate in railway tunnels had we not sent passengers through them—that should not be done in an uncontrolled way, but we certainly managed to find out what happens. We do not know what happens if a scheme such as that at Todmorden progresses, because such schemes do not progress; they remain static. We will never find out whether restoring curves make sense, unless we restore them. That should not be done randomly, and I suggest that the Department rescues its paperwork on curves and their restoration, and prioritises its projects using criteria that can be understood. We must learn lessons by actually carrying out a project and make something happen.

We must also consider other alternatives. There is a long historic link between housing development, which the country sorely needs, and rail development. Housing development often provides a subsidy for rail development. A few years ago I attended a reception—other hon. Members may also have been there—at which the Kilbride Group promoted what it was doing for railway development in the south-west. That was linked to a major housing development, and a similar aspect of housing subsidy could creep into a project such as the Burscough curves. I am aware of the role played by that group and of the possibilities elsewhere. Given that so many people have banged on about this issue for so long, it would not harm the Department for Transport to invite those with such schemes in mind to some sort of seminar, at which problems and prospects on both sides could be aired.

It would also help enormously for the Department to point to an extra mile of track somewhere, and say why it had or had not worked, and to explain why it appears to be neither physically nor financially possible to put back track in England. That would be one way forward. It does not commit the Government to a single penny but it means that we can discuss the various schemes. A while ago I asked to speak personally to the Minister about the Burscough curves, but I understand that she had other priorities at the time and I lay no blame at her door for that. However, I am not comfortable with the strange, Kafkaesque world in which nothing really happens except that the odd consultant gets paid from time to time. The bizarre anomalies that lead to people supporting various schemes continue, but no final decisions are made. I suggest that there is a more intelligent way to do things.

--- Later in debate ---

[Andrew Gwynne (Denton and Reddish) (Lab)]

It is a pleasure to speak under your chairmanship, Mr Robertson. I, too, congratulate the hon. Member for Southport (John Pugh) on securing the debate, which has been excellent. Clearly, it raises important matters about smaller rail schemes and how, in many instances, they could benefit local areas by increasing economic prosperity and improving access to the rail network for local communities. I agree with the hon. Gentleman that smaller rail schemes clearly should be considered as we consider how best to deal with expansion on our railway network.

We need to consider all ways of making our railways work in the most economically efficient way. Given that, as my hon. Friend the Member for Blackley and Broughton (Graham Stringer) rightly said, there will be serious capacity issues all over the rail network in the years to come, we need to think about the best ways of expanding the railways for the best value for money, which clearly involves looking at the types of scheme that have been discussed today.

With more and more people wanting to travel by rail, continued investment in increasing rail capacity and expanding the network are vital. With passenger growth expected to increase by up to 50% by 2020, and rail freight expected to grow by 30% during the next decade, substantial changes to the rail network will be needed.

Clearly there has been a great deal of debate in the House and media coverage about larger rail expansion projects such as Crossrail and Thameslink, the electrification schemes in Wales and the north-west, and the ongoing discussions about high-speed rail. Those projects will clearly attract the lion’s share of transport funding in the future. However, growing demand on the rail network can sometimes be satisfied, as we have heard today, by smaller enhancements, such as lengthening platforms to allow for longer trains or doubling single tracks. The former approach has been taken on some London commuter routes, and the latter is appropriate in rural areas that have become bottlenecks.

Of course, local rail expansion has been made more difficult—particularly given the expectation that these schemes and their business cases will be primarily led by local authorities, integrated transport authorities where they exist, local enterprise partnerships where they exist, and so on—following the comprehensive spending review, which left a 28% cut in local government transport spending. That has implications for the immediate future. Sometimes smaller rail projects will not be the best solution all over the rail network. As we see on an increasing number of routes, peak trains are already at maximum length and no further trains can realistically be added.

I welcome the campaigning work of the hon. Member for Southport and particularly the work that he has done to make the case for the Burscough curve, which will help to revive the disused electric track between Ormskirk and Burscough, thus bringing links to Southport. He must have found it a bit disheartening that the present Government in effect slapped a four-year ban on funding such projects, as he discussed in his speech. However, he is to be congratulated on showing the determination to find alternative sources of funding for the scheme, which will certainly benefit his constituents. I wish him well with that.

As many of us in the room are north-west MPs—the exceptions are the hon. Member for Chippenham (Duncan Hames), the Minister and her parliamentary private secretary, the hon. Member for Elmet and Rothwell (Alec Shelbrooke)—I agree with the hon. Member for Lancaster and Fleetwood (Eric Ollerenshaw) that people could mistakenly think that this is a north-west conspiracy. However, he knows that there is a great deal of rail congestion in the whole of our region, and many commentators have said that smaller schemes, many of which make up elements of what is called the northern hub, are key components in improving rail services across the north of England.

One ambition of the northern hub project is to increase train services in the north by 40% during the next 20 years, including for cities such as Newcastle, Liverpool, Manchester, Leeds and Sheffield. That would mean 700 more trains a day, which would make it possible for 3.5 million more passengers to travel by train each year. The estimated wider economic impact of the project is significant as it involves the creation of 23,000 jobs and a return of £4 for every £1 that is spent.

Although I welcome the recent announcement on the Ordsall curve, it has been frustrating for those of us who believe in the northern hub project that the Government have not yet made a firm commitment about when work on that worthwhile and economically beneficial project will begin. That would be a good starting point. I hope that any approval will not be piecemeal, however, because we need to take the northern hub project as a whole. I welcome the fact that the Ordsall curve will link Manchester Piccadilly and Manchester Victoria stations by the end of 2016, but that is only one aspect of the northern hub scheme. There is no Government commitment to the entire programme, so I ask the Minister to give a firm commitment that the project will be included in the next Network Rail control period.

Labour clearly remains committed to dealing with overcrowding and capacity problems on the network, and to considering how best to use further rail expansion to do so in the most cost-effective way. However, rail expansion and investment decisions can have a real impact on regional growth, and may help to perpetuate a cycle of increasing disparity of wealth between regions. Such decisions will be all the more important in the light of the abolition of the regional development agencies.

Smaller rail schemes obviously have beneficial effects in all areas of the country. In a previous debate, I played a parliamentary version of rail Top Trumps with the hon. Member for Chippenham over who had the worst rail service in the country—I think that I won with my example of one train a week in one direction only. However, the hon. Gentleman made a powerful case for extra investment in his constituency. I was disappointed that the Government sneaked out their decision to end all funding for local rail schemes developed by local authorities and integrated transport authorities on the same day that they announced the public consultation on High Speed 2.

[Mrs Villiers]

Does the hon. Gentleman know of any local authorities or local promoters that complained about that announcement? The fact is that none of those schemes is ready to kick off before April 2012, so they will still be subject to the same three-year consideration for national funding as under the system that we inherited from the Labour Government.

[Andrew Gwynne]

If that was the case, putting a block on the schemes was a pointless exercise.

The Government’s decision means that no central funding will be available for new schemes until April 2015, which will obviously affect schemes such as that in the constituency of the hon. Member for Southport. Why was that decision not included in the announcement about the comprehensive spending review? Such an important decision should have been announced on its own, rather than being overshadowed by an announcement on the same day about the public consultation on high-speed rail. That is a blow to further passenger choice and to economic regeneration.

The Eddington review outlined the significant returns that can result from smaller projects that unblock pinch points, saying that variable infrastructure schemes to support public transport in urban areas are likely to offer the highest returns. A recent report by the Transport Committee clearly identified the way in which the south, and particularly London, has benefited from rail investment, which was a point made eloquently by my hon. Friend the Member for Blackley and Broughton and others. The report also noted that transport investment per head in London and the south-east was three times as much as in other regions of the country. I do not wish to be misrepresented, so I point out that Labour certainly supports investment in London and the south-east, but similar interest should be shown in the needs of the rest of the country, and my hon. Friend made a valid and powerful point in that respect. Some smaller rail projects might be a way to redress the balance, but we will have to wait to see what is included in the next Network Rail control period.

I wonder whether there is a greater role for tram-train, which was mentioned by the hon. Member for Lancaster and Fleetwood. Such services could vastly improve local passenger services—and the passenger experience—by utilising existing infrastructure. It will be interesting to see the success or otherwise of the south Yorkshire trial and to note whether that can be adopted elsewhere.

Hon. Members will know that Labour is undertaking a fundamental review of all its policies, exactly as the Conservatives did when the Prime Minister became leader of his party. We are looking at all areas of policy, and I must tell my hon. Friend the Member for Blackley and Broughton that that includes the question of High Speed 2. I urge him to take part in that because his serious points about capacity on the west coast main line and regional economic disparities should be fed into the process. Whatever the outcome of the policy review, the party will remain committed to assisting the Government to secure the legal powers for High Speed 2 in the hybrid Bill. Like my hon. Friend, I urge the Government to do so for the whole of the Y-shape network, not only the route from London to Birmingham.

Local rail schemes can make an important contribution to solving transport challenges. Many of the points raised today will help to inform the debate. However, as we heard from a number of hon. Members, many local rail projects may be suspended until funding is identified. What the hon. Member for Southport said about building a viable business case was extremely valid, and it is difficult to pursue the process through a vast array of bureaucracy. How will the Government cut through that maze of bureaucracy to bring forward schemes promoted by local partnerships, as described by the hon. Gentleman?

Will the McNulty review make suggestions, and if so what is the Government’s view? What further advice does the Minister have for local authorities to get funding for their projects? Will she make a statement about smaller rail schemes such as the Todmorden curve? What work has the Department done to examine the benefits of reopening other disused rail lines? What will happen to the schemes that were in line for funding before the Government’s announcement earlier this year? The Southport scheme and others represent a small proportion of the schemes on our rail network, and we hope that those and many others will be given due consideration by the Government for the next control period.

[The Minister of State, Department for Transport (Mrs Theresa Villiers)]

I join others in congratulating my hon. Friend the Member for Southport (John Pugh) on securing the debate and on his eloquent and articulate speech. All contributions to this good debate have given us an insight into what approach to take on rail expansion, particularly with regard to local schemes. I highlight the fact that my hon. Friend the Member for Elmet and Rothwell (Alec Shelbrooke) is in the room because he also takes a keen interest in local rail services in his constituency and campaigns to improve them.

My hon. Friend the Member for Southport acknowledged that there has been a problem in recent years due to a failure to address the increase in passenger numbers by increasing capacity. To be fair to the previous Government, they started to wake up to the problem, but rather late in the day. However, a significant programme of rail investment is now under way. That is a response to the sort of points that my hon. Friend made about the success of the railways in increasing passenger numbers, as well as about the significant economic and wider regeneration benefits that can be produced by the better connectivity that comes with the railways.

I assure my hon. Friend that there is no presumption against local rail schemes, as he indicated that there might be. He and other hon. Members have highlighted the benefits of local rail expansion, whether by reopening disused lines or providing better or more frequent services on existing track. The Government fully recognise the possible benefit of such schemes. I shall set out what assistance we can give on those and the sources of funding that local authorities might look to. However, it is also important to talk about some of the bigger capacity expansion programmes, because my hon. Friend is right that they are much needed.

Despite the deficit that we inherited, the coalition has placed a priority on capital spending on rail programmes for exactly the sort of reasons that my hon. Friend outlined. We have heard about the major electrification programme in the north-west, including for routes between Liverpool and Manchester, Liverpool and Wigan, and Manchester and Blackpool. As well as benefiting long-distance services, that enables local services to be operated by electric trains, thus providing faster journeys for passengers and releasing diesel carriages for use elsewhere on the network.

New Pendolinos will be added to the west coast main line in the months to come. We have announced plans for the electrification of the Great Western line between London, Newbury, Oxford, Bristol and Cardiff. Long-distance services on both Great Western and the east coast will benefit from the new fleet of intercity express programme trains. Line improvements are also going on for the east coast. A major redevelopment at Reading station will benefit railway users right across the south-west of England and south Wales. The long-awaited upgrade of the London underground has been secured. Crossrail and Thameslink are under way and will provide a major boost for public transport capacity in London and the south-east. Funding has been secured for the whole of the CP4 programme of capacity enhancements. More than 2,000 new carriages will be introduced on to the network across the country by May 2019, around 1,800 of which will be additional capacity. That will include 650 extra carriages by May 2014.

We are also consulting on our plans to deliver a Y-shaped high-speed rail network connecting London, Birmingham, Manchester and Leeds. I am grateful for the graciously expressed support of the hon. Member for Blackley and Broughton (Graham Stringer). I assure him of our absolute commitment that the line will go to Manchester and Leeds, because we believe that will not only provide the vital uplift in capacity that he rightly highlights is needed on the west coast and east coast routes, but help to meet the ambition to rebalance the economy and close the prosperity gap between north and south. Our programme of rail and transport improvements includes significant investment in the north. When taking decisions about which investments to make, we of course take on board the wider regeneration issues and our ambition to rebalance the economy, not just the straightforward business case.

Further investment was announced in the Budget, including for the Ordsall curve, which is another important benefit for the whole of the north of England. A second project was the Swindon and Kemble redoubling, which will help to improve local services and resilience on the route to south Wales. The next high level output specification is in preparation, and we will give full consideration to the northern hub. The shadow Minister asked for the Government’s commitment to that, but I would be interested to know whether such a commitment is now official Labour party policy—I noticed that he did not specify that.

I welcome the points made by my hon. Friend the Member for Southport about the Burscough curves. I know that he has campaigned for that project for a long time. I emphasise that the key first step to make progress on that is to get support from Lancashire county council and Merseytravel. It is important for local authorities to set priorities on a direct rail link between Ormskirk and Southport, and Southport and Preston. It is for local transport authorities to decide the best way to meet a local transport need.

[John Pugh]

Several hon. Members have voiced concern —the Minister is helping us a little with it at the moment—about the opaqueness of the procedure for getting these schemes to fruition. It would be helpful if the Department for Transport would give guidance to the campaign groups across the country about the stages through which they must go, the hurdles they must get over, who the groups need to get buy-in from, and who is necessary and who is incidental.

[Mrs Villiers]

Guidance is published on the Department’s website, but officials are always happy to engage with campaign groups and local authorities to help them to navigate something that is not an easy process. When one is talking about significant amounts of taxpayers’ money, we need to ensure that care is taken when judging how to deploy it. The Public Accounts Committee and the National Audit Office analyse very astutely whether we are making the right decisions on how money is spent, and that means that business cases have to be considered. My officials will be happy to engage with my hon. Friend on the issue. I will be happy to meet him to discuss the Burscough curves. My officials are heavily engaged with local authorities in the area about the Todmorden curve, which another scheme with considerable local support.

My hon. Friend the Member for Lancaster and Fleetwood (Eric Ollerenshaw) spoke eloquently about the potential for reopening the Poulton to Fleetwood line. I much enjoyed my visit there. If he is having problems engaging with Network Rail, I will be happy to take that up and to encourage Network Rail to work with the group mentioned by hon. Friend.

In response to my hon. Friend the Member for Chippenham (Duncan Hames) on the TransWilts rail project, I know that the Secretary of State has looked at that recently. Again, if progress is to be made, the first step is to get the support of the local authorities. We want local authorities to be more heavily involved in decisions about rail and we are actively considering how best to bring down the cost of such rail schemes so that it is more viable to deliver the kind of improvements that hon. Members have asked for. We hope that the McNulty review will generate ideas on that point. In addition, we hope that projects such as the Rotherham tram train and the Abbey line tram project will give us an insight into whether light rail can provide a lower-cost alternative for some of the schemes mentioned today.

Sources of funding for such local schemes might include the private sector, if developer contributions are available. The local sustainable transport fund or the regional growth fund are also available. The spending review has provided significant funds for major local transport schemes—£1.5 billion up to 2015. A number of schemes have already been given the go-ahead, including improvements to Leeds station and the extension of the Midland metro. Projects such as Kirkstall Forge and Apperley Bridge are under consideration.

A further funding source is available after a certain period. For projects that are primarily local in nature, we think that it is fair to ask the local authorities to take initial responsibility for getting the scheme up and running, and funding it. We recognise, however, that the railway network needs to adapt to population growth, and we are always prepared to consider the case for reopening disused local lines or the enhancement of local services on existing lines. When a local authority has chosen a rail solution to meet its transport needs, it is appropriate for it to demonstrate its commitment to that solution by taking initial responsibility for revenue funding. Once the service has run for a few years and demonstrated its success, we will then assess it on the same basis as existing franchised services. If the scheme has a good business case, and if the ongoing subsidy required is affordable and can be accommodated within available budgets, we are prepared to consider providing funding at a national level from the departmental rail budget. Schemes would normally be considered for such central funding after three years, but because of the constraints on the budget, we have made it clear that new schemes will not be considered for central funding on that basis until after 2015, although we do not believe that that will have an impact on any existing schemes.