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The Parliamentary Under-Secretary of State for Transport (Norman Baker)
I congratulate my hon. Friend the Member for Rossendale and Darwen (Jake Berry) on securing the debate, which is of considerable importance to his constituents who live in Rossendale. I know that he has been a strong advocate for his area on the issue for some time.
The coalition Government appreciate the economic benefits that investment in transport can bring to an area. Our priorities in the Department for Transport are economic growth and cutting carbon, so we welcome any proposals that address those issues. The need to encourage economic growth is particularly important in the north-west and, as my hon. Friend recognises, we have already taken steps to address that by announcing a series of rail investments.
My hon. Friend referred to High Speed 2 and the Todmorden curve. He might also have mentioned the electrification of the north-west triangle of lines between Manchester and Liverpool, Liverpool and Wigan, and Manchester and Blackpool; the go-ahead for the Ordsall curve, the first stage of the northern hub, which will help significantly to reduce journey times between Liverpool, Yorkshire and the north-east; the approval, subject to confirmation of the business case, of the electrification of the north trans-Pennine route between Manchester and York via Leeds; the approval of the Metrolink extensions in Manchester, which are being implemented by Transport for Greater Manchester; and our recent agreement with Northern Rail and First TransPennine Express for additional carriages to be provided in the north-west. I hope that my hon. Friend recognises that in the short time we have been in government, we have already done a great deal to promote rail investment in the north-west, not least for the reasons he has cited.
We recognise that wage rates in Rossendale are estimated to be 10% lower than in Manchester, the north-west and the UK as a whole—an estimate to which my hon. Friend drew attention. Transport has a key role to play in improving the economic well-being of an area. We are therefore happy to support the efforts being made by local transport authorities to improve transport in their areas so as to improve access to jobs and attract new employment. In particular, I agree with my hon. Friend on his point about young people having access to major conurbations for jobs and employment, and for social reasons, too.
Rossendale was particularly unfortunate to have its railway line closed as a result of the Beeching cuts of the 1960s and 1970s. Dr Beeching was so keen on cuts that he even cut his own line in Sussex. Lines on either side of Rossendale—between Bolton and Blackburn, and between Rochdale and Todmorden—are thriving. They are being used by greater numbers of people travelling to work in Manchester, and that has led to longer trains being provided and requests for better off-peak frequencies.
The closure of the railway line was bad news for the area. However, had that not happened, we would not have witnessed the tremendous success of the heritage east Lancashire railway, to which my hon. Friend rightly paid tribute. It has brought hundreds of thousands of visitors to the area, as well as creating new jobs. It has given a tremendous boost to the local economy and put the area on the tourism map. I pay tribute to the many people involved in this and other heritage lines, not least the Bluebell railway in my constituency. Such lines have succeeded in making heritage railways one of Britain’s great success stories in tourism towns.
Despite that success, I appreciate that the lack of a regular rail service can put an area at a disadvantage, particularly as regards providing access to a major employment centre such as Manchester. As a Transport Minister in the coalition Government, and also as a Liberal Democrat, I support fully the reopening of railway lines as a means of improving accessibility to places—subject, of course, to there being a satisfactory business case.
Graham Jones
Does the Minister agree that there is an urgent need for public transport investment? I caught the bus to Manchester and it took me two hours to get into the city centre. As the hon. Member for Rossendale and Darwen (Jake Berry) pointed out, the M66 is choked up.
Norman Baker
The hon. Gentleman anticipates my next point. I was about to refer to access to the A56, the M66, the M60 and the M62. They are used by express bus services, but they suffer from peak-period congestion—there is no getting away from that, and that has to form part of considerations—which makes commuting into Manchester by bus relatively unattractive. I understand why the local authority believes that the area is not benefitting from the growth in jobs and average wage rates experienced by other areas, including local areas.
The Department understands that local authorities and Transport for Greater Manchester are working together to see how their transport problems can be addressed. My hon. Friend the Member for Rossendale and Darwen referred to the 2008 Greater Manchester passenger transport executive study, which investigated the scope for using the east Lancashire railway to provide a commuter service from towns in the Rossendale valley to Manchester. The study looked at a number of options, including an extension of Metrolink and a new heavy rail service.
The estimated capital cost of adapting the heritage line to accommodate regular heavy rail services was estimated at between £22 million and £30 million. The study was very sensitive to the requirements of the heritage railway and came up with a series of proposals that enabled both types of service to operate at different times of the day, and days of the week. Personally, I think that the proposal for joint working could be a strength rather than a weakness. It also calculated the operating and maintenance costs of the various service options, suggesting that they would be approximately £1.5 million to £2 million per year.
At the time, the Department suggested that the PTE and local authorities follow up the study with some demand forecasting work, so that an estimate of passenger income could be made and a business case calculated for the scheme. The Department understands that this work was carried out, but we have not seen the results. However, we understand from the local authorities that they were unhappy with the assumptions used to forecast future demand, which has led to the conclusion that the business case for this scheme is not strong. Since that work was done, the Department has produced a guidance note on demand forecasting. It is available on our website; my hon. Friend might like to draw that to the attention of the local authorities.
We are aware that the line was one of many that the Association of Train Operating Companies looked at in its “Connecting Communities” report. Its very high level piece of work suggested it might have a business case of 1.8 at best. That in itself might encourage the local authorities to look again at the scheme in greater depth, with the help and support of train operators.
As for the next steps, it seems crucial for the local authorities to get together and look again at forecasts of demand, and to confirm whether there is a business case. If there is a good business case for a rail scheme and that still appears to be the best way of meeting local transport needs, further development work will be necessary, especially given the necessity of linking the scheme with the heritage railway. The promoters will need to weigh up the costs and benefits, and estimate the need for long-term subsidy. Transport for Greater Manchester and the local authorities will have to make the difficult decision of how high a priority to give the scheme, given the number of competing priorities that we are aware of, both in Lancashire and in Greater Manchester.
The Government can help. In addition to the advice that we are prepared to offer any promoter of a rail scheme, we provide capital funds toward transport schemes. We are currently consulting on the funding process for the major local transport schemes, which will come into effect from April 2015. We have made it clear that local authorities and local enterprise partnerships can use that to fund rail schemes, as well as other public transport schemes and highway schemes. That gives local bodies genuine choice over the best way to meet their local transport needs. We are moving away from the idea that local authorities simply deal with roads, and we are giving them the opportunity to consider road and rail—what is best for their areas. As the scheme will address primarily local needs, this would not be a project that the rail industry would be looking to fund in a future control period such as, say, 2019 to 2026.
We will shortly consult on rail decentralisation, with a view to giving greater responsibility for specification of rail services to local authorities and PTEs. Transport for Greater Manchester appears to be very enthusiastic about taking on such responsibilities as part of a larger consortium. The local enthusiasm for transport is probably more advanced in the Manchester area than elsewhere in England—a good development from my hon. Friend’s point of view. A new service to Rossendale is just the sort of service that could be included in a network of services that could be devolved.
In conclusion, I encourage the local authorities and Transport for Greater Manchester to complete the demand forecasting work to establish whether there is a business case, and to continue to consider alternative ways of addressing the issues raised in the debate. Both Lancashire county council and Transport for Greater Manchester are experienced in considering such projects, but the Department is happy to provide advice and guidance if that is needed. I am happy to arrange a meeting with officials, local representatives and my hon. Friend, if that would be helpful in taking the matter forward.