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The Parliamentary Under-Secretary of State for Transport (Wendy Morton)
I congratulate the hon. Member for Dagenham and Rainham (Jon Cruddas) on securing the debate, and I thank my hon. Friend the Member for Romford (Andrew Rosindell) for his contribution.
The provision of a station at Beam Park is a project that has been developed by the Greater London Authority. I understand that the provision of the station is a planning condition set by the local planning authority, and the delivery of additional housing in excess of 3,000 homes is dependent on the station. We do, of course, support the development of housing near the railway in the borough and more widely across the country. In past years, we have released public railway land that is no longer needed for operational use, thereby enabling the delivery of thousands of new homes.
We are working closely with local authorities and the Department for Levelling Up, Housing and Communities to deliver new stations and railway improvements, enabling new homes to come forward that are served by excellent and sustainable public transport connections. Through the Williams-Shapps plan for rail, we have set out how we will use the establishment of Great British Railways to further support development near stations and deliver local economic growth.
However, we must not lose sight of the need to appropriately scrutinise proposals for works on the railway, ensuring that we deliver schemes with the greatest benefits that protect taxpayers now and in future. The value for money of schemes should be evaluated on a case-by-case basis. Developers cannot assume to look to the rail operating budget to subsidise housing development.
Where a new station is required to support development, Network Rail’s guidance “Investment in Stations” makes clear to promoters of new stations the importance of the Department’s authorisation for a new station if a train operator is anticipated to serve it, which is the case with Beam Park. That need for the Department’s authorisation and the value of getting it at an early stage, before proceeding to the more detailed and costly business case stage, was underlined to the GLA in a meeting in December 2017, when the GLA first consulted the Department, as proposals to develop a new station at Beam Park had been in place since 2014. At that meeting, early on, the Department’s officials voiced concerns about the business case in a number of rail areas, which I will address.
The full operational costs of incorporating an additional station in the network, which in this case would involve the provision of an additional train and associated crew, had not been considered in the business case. That significantly adds to the cost of providing the station. In addition, the proposals had not acknowledged that the station would be abstracting from the two stations either side of it on the same line—Rainham and Dagenham Dock, which are both approximately a mile away from the proposed new station. Those concerns were raised and identified not only by the Department but by the train operator, Trenitalia c2c Ltd, and were explained to the GLA in writing in March 2018 before it committed to fund Beam Park station.
Adding the extra call at Beam Park would lengthen the journey time for Essex commuters and reduce the attractiveness of the railway to help stimulate new housing developments in Essex. Those housing developments serve and stimulate London’s economy but are outside the GLA’s area of housing responsibility. The Department’s concern is to understand how the GLA takes account of that loss of potential when considering new stations in the GLA area to stimulate housing growth. The analysis of the proposed station at Beam Park that we have seen to date does not seem to consider that strategic issue.
The GLA’s response to our March 2018 letter made it clear that it had no intention of reviewing the business case, despite the concerns I have listed, but that it intended instead to progress with the scope and programme for opening. The next time the Department for Transport was contacted by the GLA on this matter was in mid-2020, by which point the GLA had, in March 2020, approved the expenditure to deliver a new station at Beam Park. Fundamentally, there was no further consultation with the Department and no response to the concerns raised.
In a further letter to the GLA in September 2020, following the contact made by the GLA in mid-2020, the Department restated its concerns about the development of the station in the light of the significant funding risks related to the station’s operational costs, and the performance impact that would have on the network. The letter made it clear to the GLA that the Department could take no financial risks associated with the station.
The Department’s concern throughout the process has been to ensure that we are held immune from all financial risk caused by a new station at Beam Park. The GLA’s offer of a £10 million capped amount limited to a 10-year period is not acceptable to the Department. The GLA’s offer does not cover the full cost risk we believe Beam Park station imports; it would need to be unlimited in both time and cost. In addition, the GLA business case was prepared and approved prior to the covid pandemic; passenger volumes are now significantly lower than previously forecast. Ticket revenue from Beam Park is unlikely to cover the additional costs in the short term, and it may not do so even in the long term.
Let me take the opportunity to clarify that the Department has not withdrawn support for the development of the station; support was never given in the first instance. If the GLA is satisfied that the new station presents value for money and is an acceptable use of public funds, the Department’s position is to look for a commitment to hold the Department immune from any financial risk we believe the new station presents. The Department fully supports the housing development in Beam Park and the wider Dagenham and Rainham area, and continues to work alongside the Department for Levelling Up, Housing and Communities to assist with strategy and planning. We will provide support to develop and enhance the existing stations, and we encourage local stakeholders and the GLA to focus their attention on opportunities to improve access to those stations by improving street access where the former industrial land use made station access difficult from parts of the surrounding area.
I thank the hon. Member for Dagenham and Rainham for securing this debate and shining a spotlight on issues related to Beam Park station.
Andrew Rosindell
I thank the Minister for all her comments. I fully understand the arguments—the viability of the station has to be paramount; it has to be part of the discussion—but will she please at least pledge to the hon. Member for Dagenham and Rainham, to me and to all the people of the London Borough of Havering and the London Borough of Barking and Dagenham who could benefit from the station that she will go back and look at it afresh, and look at ways we can progress it? Will she also commit—I know it is sometimes difficult—to work with the Mayor of London to see if he and TfL will co-operate with us?
Havering is a forgotten borough. We get very little from the GLA. We pay a lot of money in, but we get very little back. We are Essex; we are not really London, but we get lumped in with London. This is one thing that would actually benefit our borough. If it is taken away from us, there will be huge disillusionment not just down in Rainham, South Hornchurch and Beam Park but across our borough. We feel neglected. We do not feel we are getting our fair slice of the cake in the Greater London area, and I hope that the Government will take the chance to level up areas such as ours. I gently ask the Minister to take this issue back and see what she can do. This is a cross-party thing. We want the station to go ahead and succeed, and I ask her to do her utmost to ensure that it does.
Wendy Morton
I am grateful to my hon. Friend. He speaks with such passion for his constituents, which I absolutely understand and would expect him to do. What I can say is that the Department has not withdrawn any funding. This is a scheme led entirely by the GLA. We are committed to providing better connectivity, while demonstrating that investments provide appropriate value for money. The Department remains absolutely open to engagement with stakeholders. I hope that gives some reassurance to hon. Members.
Andrew Rosindell
Will the Minister commit to a meeting with me and the hon. Member for Dagenham and Rainham, together with Darren Rodwell, the leader of Barking and Dagenham Council, and Damian White, the leader of Havering Council, to see if we can iron out some of these issues and work together to make the project succeed?
Wendy Morton
As I said, the Department remains absolutely open to engagement with stakeholders. Let me take that point away and see. I can certainly meet my hon. Friend and the hon. Member for Dagenham and Rainham.
In conclusion—I have my eye on the clock—it is important that all parties recognise that much of the work on the current business case was based on the railway pre-covid, and early indications are that the post-covid situation worsens the case for Beam Park, as commuter demand has declined. Despite that, the costs associated with a new station have not reduced. While we will work with the GLA should it be able to provide funding to cover all the costs of Beam Park, we recognise that it may not be able to do so.
Question put and agreed to.