Exiting the EU and Transport

Andy McDonald Excerpts

Wednesday 23rd November 2016 Commons Chamber

[Andy McDonald (Middlesbrough) (Lab)]

I echo the Secretary of State’s expression of his regard for the workers who have come to the aid of the south-west’s rail system yet again. We have heard other hon. Members express their disappointment that we are still looking at issues of resilience in that area, and I know that they will want that matter to be resolved as quickly as possible.

The Government’s strategy for leaving the European Union—or rather, the lack of one—is causing great uncertainty throughout the transport sector. I do not know who the Secretary of State is speaking to about this, but we, and those in the aviation, rail, road and maritime sectors, are none the wiser about what the Government’s plans might be and what impact Brexit will have on the future of those sectors and all those who work in or depend on them.

[Sir William Cash]

I have already referred to the question of the ports sector. Speaking as Chairman of the European Scrutiny Committee, I can tell the House that it has been well established over a long period that the Government, the Labour Opposition, the unions and every one of the 47 port employers are against ports regulation. What are Labour Members going to say about that during this debate? Are they going to oppose it?

[Andy McDonald]

If the hon. Gentleman can wait six or seven minutes, I will come to that very point.

Today’s debate offers a welcome opportunity for the Secretary of State to provide some much-needed clarity on his plans for transport in a post-Brexit UK. He was one of the leading advocates of Britain leaving the EU, and he now has the privilege of being the Transport Secretary, so if anyone can provide us with a clear picture of what to expect in the months and years ahead, presumably he can.

One of the areas of transport most likely to be affected by the country’s decision to leave the EU is the aviation sector, which is a key pillar of our economy. Taken country by country, the UK’s aviation sector is the largest in Europe and the third largest in the world. It is worth about £50 billion in terms of our GDP, it supports 1 million jobs and it secures the Treasury some £9 billion in taxation each year.

While we accept the result of the referendum and are determined to secure the best possible deal for all the UK, we must not be an inward-looking nation that is cut off from the cultural and economic benefits that come with being an interconnected country. We must be ready to do business with the rest of the world. That means retaining and building on the connectivity that the UK currently enjoys in order to allow the flow of goods and services that will be key to getting the best out of Brexit.

[Robert Flello]

I, too, want Brexit to be a success and for us to get on with it and ensure that we get the best possible deal for our country. However, does my hon. Friend share my concern that the Department for Transport, which has seen massive cuts to its revenue budgets and day-to-day spend, just will not have the staffing in place to be able to deal with the huge number of issues? At the same time as we negotiate Brexit, we will be negotiating different agreements with other countries on matters such as aviation.

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[Andy McDonald]

My hon. Friend makes a good point. We have seen the inability to see such things through and deliver them not only on this issue, but through the prism of the franchising system in the rail market. He raises a grave concern about something that we will be watching with great care in the weeks and months ahead.

Through its membership of the EU, the UK currently relies on the EU single aviation market, which allows airlines to operate freely inside the EU without restriction on capacity, frequency or pricing and enables the use of the EU’s external aviation agreements. Leaving the European economic area could mean that we are no longer part of the single aviation market and could lose access to those external air service agreements. That is critical, because unless the position is clarified urgently UK airlines will lose the right to operate within the European Union and airlines will lose the right to fly UK domestic routes. The Government must ensure that Brexit does not damage the UK’s connectivity. The aviation sector has been clear about the importance of retaining an unchanged operating environment.

[Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

The hon. Gentleman and others have talked about getting the best out of Brexit as it arrives. Given the seven options for that process, does he imagine that any will be as good as the situation that we have at the moment? People are looking for the best decision, but the question is whether it will be as good as what we have.

[Andy McDonald]

The hon. Gentleman raises a critical point that is the whole focus of this debate. It is our concern in this House that we are simply not going to be able to deliver the same level of interoperability and accessibility as we currently enjoy throughout Europe. In the aviation sector, it is critical to achieve that before we even begin discussions about our trading relationship going forward.

[Nick Smith]

The National Audit Office says that, under this Conservative Government’s watch, Network Rail and the Government have wasted £330 million so far on the great western mainline electrification. Does my hon. Friend agree that the Department for Transport needs to pull its socks up to deliver on future infrastructure projects?

[Andy McDonald]

My hon. Friend makes his point eloquently. That is the sort of wastage from this Department that we have seen in so many areas over the past several years. We have seen smart ticketing costs written off and the Great Western debacle. Everyone in this place is worried about its inability to function effectively.

It is vital that there be not only early assurances from Government, but confirmation that the status of current aviation practices will be guaranteed beyond our formal departure from the EU.

[Robert Flello]

My hon. Friend is being generous in taking interventions. I was slightly reassured by what the Secretary of State said a few moments ago about his planned meetings with the US Secretary of Transportation. My hon. Friend talked about access to the European network, but the danger on the US side is that we will fall back on the Bermuda II agreement, which was designed for a whole different world and certainly not for the 21st century. Does my hon. Friend share my concern that we have more to worry about than just European skies?

[Andy McDonald]

I do share those concerns. Although it is clearly imperative that conversations be had with those across the Atlantic, I was a little anxious to hear from the Secretary of State that that becomes the first port of call, rather than trying to resolve matters within the European Union.

[Chris Grayling]

I have also spent quite a lot of time with my German counterpart and with a number of other European Transport Ministers, and I will be doing that next week.

[Andy McDonald]

I am delighted to hear it.

Will the Secretary of State explain to the House his plans for the UK’s relationship with the European Aviation Safety Agency on leaving the EU? What is his intention? Will he seek to maintain technical co-operation through a bilateral aviation safety agreement approach, as with the United States, Canada and Brazil, or through a working arrangement with the EU, as is currently enjoyed by China, New Zealand and Russia? I urge the Government to confirm that air service agreements will be negotiated separately from the UK’s negotiations on future trade with the EU, as well as specifying the nature of those agreements. I invite the Secretary of State to outline his plans for UK airlines to retain the right to operate within the EU and retain access to the EU’s external air service agreements.

[Mr MacNeil]

The hon. Gentleman has touched on an important point about retaining the work done on the open skies agreement, because if we look back on UK air policy before that time, as I have done, we see that it was about bilateral agreements that specified flying into London airports only. I believe Iceland broke that by getting into Glasgow, because the father of one of the negotiators wanted to go shopping for suits in Glasgow. That absolutely points out the problem we faced when the UK was managing this itself: it was centralised for the benefit of the south-east of the UK, to the detriment of others.

[Andy McDonald]

I do not know where you get your suits, Mr Deputy Speaker—[Interruption.] Neither in Iceland, nor in Glasgow. It appears we should always go to Glasgow. The issue the hon. Gentleman raises is particularly pertinent given the decision we have just had on the additional south-eastern runway, so he makes the point well.

Numerous rail projects in the UK receive support via loans or direct funding as a consequence of our membership of the EU, and now is not the time for the Department to row back on investments in our railways, as we have seen happen repeatedly in respect of electrification works, which hon. Members have spoken about so eloquently this afternoon. I invite the Secretary of State to reassure the House that any funding shortfalls will be made up by the Government and that investment in rail will not suffer as a consequence of Brexit.

The Secretary of State said during the EU referendum that he wanted to take back control. Labour Members very much wish to take back control of our railways from private and foreign state-owned companies, which currently profit from the system at the expense of passengers and taxpayers. Ours is a policy supported by two thirds of the public, but, as the Secretary of State is aware, although running services in the public sector is currently entirely consistent with EU legislation, the fourth railway package may restrict the different models of public ownership that might be available. Does he agree—I believe he said so earlier—that it should be for UK voters to decide how best to order our railways? If so, will he confirm that his Government will not attempt to retain any European requirements in domestic law that would frustrate any future attempts to bring railways back into public ownership? I was delighted to hear what he had to say about HS2, and I suppose that if there is going to be a silver lining from leaving the EU, it will be that we will not be able to blame “them” any longer for any problems we have with disabled people getting access to our railway system.

My hon. Friend the Member for Blaenau Gwent (Nick Smith) has not had an answer to his question, because he made it abundantly clear that he was talking about the infrastructure. The Secretary of State suggested he should be satisfied with improved services, but those will come only with improvements in the infrastructure.

The skills footprint, to which the Secretary of State referred with great regularity—of course we share some of his concerns—should be delivered whether or not we are in the European Union. That is not a consequence of any move. It should be an absolute prerequisite that is woven into everything we do.

Although we have decided as a nation to leave the European Union, co-operating with, and retaining our connectivity to, the EU is vital. We would greatly appreciate it if the Secretary of State enlightened us on what progress is being made to ensure that hauliers from the UK can carry goods between other member states and on whether it is his intention to secure an agreement for British driving licences to continue to be exchangeable with those of EU member states after Brexit.

Finally, let me mention UK ports, which directly employ more than 25,000 people, many of whom voted to leave because of anxiety surrounding EU ports services regulation. Many leave campaigners argued that leaving the EU would ensure full exemption from those regulations. However, the former shipping Minister, the hon. Member for Scarborough and Whitby (Mr Goodwill), was reported as saying that the ports services regulation would still apply under an arrangement that granted the UK access to the European economic area. Can the Secretary of State clarify the Government’s intentions on any withdrawal from ports regulations and guarantee that any exemptions do not inadvertently undermine strong industrial relations and the welfare standards of dock and port workers?

[Sir William Cash]

Whatever the hon. Gentleman may try to infer with regard to the European economic area, it is completely beside the point. The fact is that there is a regulation and, as he knows, it is on the brink of being brought in—I believe it is by the end of this month. All that talk that he has just given us has nothing to do with the issue. The real question is whether the Labour party is going to oppose it. Will it say that it condemns it, because that is what the unions, the Government and, as I understood it, the Labour party wanted?

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[Andy McDonald]

I am not sure whether I could have been any clearer. I have just addressed the issue head on. If the hon. Gentleman reads Hansard, he might be a little clearer in his own mind.

My contribution has been full of questions, because so little has been revealed so far that would give any idea of what the Government are setting out to achieve after Brexit and of the mechanisms by which they aim to achieve any such objectives. Huge questions remain over the future of our flourishing aviation sector; over what existing EU legislation will be retained and what that will mean for our railways and ports; over whether EU funding for transport projects will be made up by the Government, and over issues to do with connectivity by road and what Brexit will mean for haulage.

I invite the Secretary of State to bring forward the details of his Department’s plans for Brexit, which have been, so far, so stark staringly absent.

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[Dame Rosie Winterton (Doncaster Central) (Lab)]

As my hon. Friend the Member for Middlesbrough (Andy McDonald) and other hon. and right hon. Members have made clear in this welcome debate, Brexit has huge implications for our whole transport network, but I want to focus on the rail freight sector. I was disappointed that the Secretary of State did not include rail freight as one of his priorities, and I suspect that the rail freight industry will be disappointed, too. When the Minister replies to the debate, I hope he will reassure us that the Government take the industry’s concerns seriously.

I have previously raised in the House the situation of DB Cargo UK, a company with headquarters in my constituency that has recently announced 893 redundancies. In a letter to the trade union ASLEF, the company said that as well as falling demand from the coal and steel industries, Brexit has caused a slowdown in demand for the movement of freight by rail. I have discussed the problems facing the rail freight industry with the relevant trade unions and also this week met the chief executive officer of DB Cargo UK, Hans-Georg Werner. I hope Members and the Minister will agree that rail freight is a key service for those doing business in the UK, enabling the import and export of goods through ports and the channel tunnel and, crucially, the movement of goods within the UK. Rail freight depends on the total volume of UK trade as well as the modal share between rail and road. It is a good barometer of the health of the economy as a whole.

[Andy McDonald]

Does my right hon. Friend agree that sustaining the rail freight industry is vital for the maintenance of the infrastructure itself and that we neglect that issue at our peril?

[Dame Rosie Winterton]

My hon. Friend makes an absolutely correct point. That is why we need to use this debate to highlight some of the infrastructure issues we face and to try to tease out of the Minister what the autumn statement might mean for the rail freight industry.

At the moment, the Government are giving little clarity as to what they are looking for from future trade agreements, but it is clear that some options, particularly those with increased trade tariffs, could be challenging for the UK market as a whole and for rail freight in particular. We know that uncertainty about what trade agreements will be reached in those Brexit negotiations is having a detrimental effect on business. The rail freight industry has been especially affected by the slowdown in the construction industry, where there is a nervousness from investors; as we wait for the Government to set out their negotiating position, investment decisions are being put on hold. Whether we are to remain in the customs union and whether we are to maintain access to the single market could have massive impacts on our customs and excise regime, which would naturally have an impact on points of entry, such as ports.

We must also consider the direct impact of European legislation on the rail freight industry. Much railway legislation derives from European law and provides a number of essential protections for rail freight, for example, on track access and charging. It will be vital that these protections continue in any revised legislation. I know the industry considers it essential that a coherent and holistic approach is taken, with any change in law being specifically linked to a change in Government policy for the railways, rather than having piecemeal changes. That applies to legislation on rail freight through the channel tunnel. Many railway standards are also set at European level, particularly technical standards for interoperability, which aim to improve the cost-effectiveness of railways and the ability to operate across Europe. I hope the Minister can assure me that discussions with the industry are being held about any revisions to infrastructure standards, to protect the ability of freight to operate efficiently.

There is a real need for the Government to provide reassurances to the rail freight sector, so that business confidence remains strong and investment is supported. Rail freight operators need confidence to plan ahead, when buying new wagons, for example, investing in new terminals to support future traffic and looking at expanding in areas such as the automotive industry. Again, the Government need to work closely with the rail freight industry to make this happen and deliver solutions that support growth.

One such solution is, of course, HS2, which has the potential not only to provide business for the rail freight industry during construction, but in the longer term to free up capacity for rail freight. Again, I hope the Minister can assure the House that the Government are talking to the industry about the potential for rail freight in HS2.

There are many other areas of European law that affect the rail freight industry, especially workers’ rights and environmental legislation. Workers’ rights and protection are particularly important in this industry not least because of safety considerations—something of which we are too well aware at the current time. I hope that the Minister can assure me that he is discussing these issues with the relevant trade unions.

My hon. Friend the Member for Liverpool, Riverside (Mrs Ellman), the Chair of the Transport Committee, made some very good points with regard to environmental legislation. Rail freight is vital in cutting emissions, and we need assurances that, once we have left the European Union, we will mirror agreements under the EU and work actively to help the industry by investing, through Network Rail, in projects that increase capacity, improve connectivity and encourage intermodal solutions to help cut emissions. I hope that, in the process of doing that, we will look across Europe for good examples. In Austria, for instance, I understand that subsidies are available for trains that carry road freight vehicles, and we need to consider whether we should be emulating such practices as we go forward. Will the Minister tell us what planning has been done to improve not only freight productivity, but that link with environmental targets?

On the autumn statement, will the Minister tell us what its implications are for the rail freight industry? I am not sure whether I heard the words “rail freight” mentioned during the statement. I know that the Chancellor said that it will be about departmental decisions, but, again, because the Secretary of State did not mention it in his opening remarks, can the Minister shed a little light on what he thinks the Department is looking at with regard to rail freight, and also what the process will be for coming to those decisions? Investment was talked about, but we need to see that applied to the rail freight industry.

As we have seen today, the process of leaving the European Union will be complicated, fraught with uncertainty and might have considerable unforeseen consequences for our economy’s productive capacity. The need to secure the most advantageous deal for business is understood, but of course the shape of that deal is what will be contested over the coming months. I hope that we can agree that there is an overriding need to reduce uncertainty for business as a whole and for the rail freight sector in particular. It is essential that the Government have serious discussions with the rail freight industry and the unions, which represent those who work in the industry, about the post-Brexit future, so that the best possible outcome of Brexit negotiations can be achieved. Again, I hope that the Minister, in his reply, will be unequivocal about his commitment to openness, transparency and the fullest possible consultation with all those involved in this vital industry.

Oral Answers to Questions

Andy McDonald Excerpts

Thursday 17th November 2016 Commons Chamber

[Paul Maynard]

I thank my right hon. Friend for his comments. He is right to indicate the progress that has been made. However, we cannot accept a situation where some of our busiest stations remain inaccessible, so work will have to continue into the next rail period and beyond. I intend to keep up the pressure on Network Rail and train operating companies, as I am sure Members across the House will, too.

[Andy McDonald (Middlesbrough) (Lab)]

Despite the fact that so many disabled people rely on public transport, the Government have slashed the Access for All programme, which pays for improvements to access at stations, by 40%. Some 19% of stations currently have step-free access via lifts and ramps to all their platforms. Given that record, we can hardly describe ourselves as an inclusive society when so many stations are inaccessible to disabled people. What representations will the Minister make to the Chancellor ahead of the autumn statement to address that appalling state of affairs?

[Paul Maynard]

I am glad that the hon. Gentleman also shares my commitment to the issue. We have made important progress in delivering improved accessibility at many of our busiest stations, but there is still more to do. I will not pre-empt the autumn statement, however much he might like me to do so, but I will seek more money for Access for All in control period 6 of our rail investment. That will deliver far more accessibility at far more stations.

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[Andrew Jones]

Transport investments around the country are not necessarily happening at the same pace, but I suggest to the hon. Lady that £340 million is being spent on rail in the Liverpool city region right now, and nobody could really doubt our commitment to the north after this week’s announcements on HS2.

[Andy McDonald (Middlesbrough) (Lab)]

I do not want to prick the bubble of self-congratulation, but new analysis published yesterday by the TUC reveals that the UK ranks towards the bottom of the table of OECD countries for capital investment in important areas of economic development, and worst of all is transport. As a percentage of 2014 GDP—these are the latest figures—UK investment was the lowest ranking, in last place out of 34 countries. With pauses and unpauses, and shunting programmes off into the distant future—be it HS3, northern powerhouse rail, or whatever we want to call it—is it not time that the Government started delivering instead of continually breaking their promises?

[Andrew Jones]

I remind the hon. Gentleman how we collapsed in OECD league tables under the last Labour Government, and that we are spending £13 billion on transport investment in the north during this Parliament, as I outlined earlier.

HS2 Update

Andy McDonald Excerpts

Tuesday 15th November 2016 Commons Chamber

[Andy McDonald (Middlesbrough) (Lab)]

I thank the Secretary of State for his statement and for advance sight of it, for which I am most grateful.

Labour Members are pleased to finally have a partial announcement of the HS2 route, and it is to be very much welcomed, as the delay in getting to this announcement has been immensely stressful for the communities concerned. Labour supports HS2 because we recognise the need for not only faster journey times and improved connectivity but, most importantly, extra capacity—not just for the benefit of passengers, but to transfer freight from road to rail, as the Secretary of State mentioned in his statement.

The employment, and in many cases the lifelong career opportunities, that HS2 will bring will be immense, and we very much welcome all of that, but that does not mean that our support is without qualification, as considerable concerns still remain. There are significant details of the route that have not been confirmed in today’ s announcement—most notably a decision on whether to site a station in or around Sheffield, which has been dodged, along with three decisions on the western leg and three on the eastern leg. This is not the first time we have experienced this Government dithering on key infrastructure decisions. While we welcome the consultation that is to follow, there is clearly a risk that it may cause the Government to overly delay decisions, as we have seen recently on a number of nationally important pieces of infrastructure. I ask for an assurance from the Secretary of State that that will not be the case in this instance.

During the consultation, it is imperative that the voices of local communities be heard—especially those communities that will be particularly disrupted by the route as we now know it. Among other things, we have seen the pain and anguish caused to many villages and communities in the south Yorkshire region and elsewhere, and while we need to study the detail of the proposals we must ensure that proper mitigations and comprehensive compensation schemes are in place. There will be strong arguments made to modify the alignment of the route in many cases, and those arguments will have to be given proper consideration.

Earlier this year, the National Audit Office reported that HS2 had an “unrealistic timetable” and faced major cost pressures, and that too ambitious a timetable meant that not all the intended benefits would be delivered. We have seen similar problems beset other rail projects, with the Government recently reneging on their manifesto commitment regarding electrification works on the Great Western route and refusing to commit to the already delayed timetable of electrification works on the midland main line. The Department for Transport has a track record of being unable to complete works on time or on budget, so there is understandable concern that HS2 will not be delivered to budget or on time, and I ask the Secretary of State to confirm unequivocally that the planned start dates will be met and the project delivered on the planned timescale and costings.

This is not solely about HS2. So-called HS3 has to be progressed, as do the paused and unpaused enhancement works that are essential to bring greater connectivities to communities that are not directly connected to HS2. They cannot be forgotten, and they cannot be left behind. The benefits that HS2 can bring to the country are significant, but the Government must get a grip to keep the project on track and to avoid the concerns expressed in the National Audit Office report being realised.

The Government announced that a new rail franchise, the west coast partnership, which is scheduled to start on 1 April 2019, will combine the current inter-city west coast services with HS2, meaning that HS2 will be run in the private sector from 2026 and that Virgin looks set to be granted a further uncontested 12-month contract to run inter-city west coast trains. The Government seem determined to hand over vast swathes of our public services, and what should be our public services, to Richard Branson en masse. Billions of pounds of taxpayers’ money is being invested in HS2, so it is right that the revenues go back to the Exchequer and not into the hands of train operating companies. HS2 should be run in the public sector, as a public service.

Given the concerns about the cost of HS2, the Government should be looking to get the best deal for the UK rather than the shareholders of private train companies or the taxpayers of Germany, France or Holland. It is time to take back control of our railways. Labour is committed to the public ownership and running of our railways, and that includes HS2. A future Labour Government would bring any such franchise back within public operation at the earliest possible opportunity. We support HS2, but it has to deliver for taxpayers and passengers alike, and that will be the consistent challenge for Parliament in the years ahead.

[Chris Grayling]

First, let me welcome the hon. Gentleman’s support for the principle of the project, although we obviously have one or two areas of difference.

Let me start with the issue of the route through Sheffield. The hon. Gentleman accuses us of dithering. I would simply remind him that we have a statutory duty to consult. We are bringing forward a new set of proposals. He will not, I am sure, argue that I should break the law when it comes to the consultation process that we need to go through. I clearly want to give people as much certainty as possible, as quickly as possible, but I have a statutory duty, and I intend to fulfil it.

I recognise the issue that local communities face, and part of what we will need to do through that consultation process is listen to those local communities about the things we can do, large and small, to mitigate the impacts on them. That is a very important part of the consultation process.

The hon. Gentleman talks about an unrealistic timetable. I think many people in this country would share my frustration that, actually, it will take 17 years from today to complete the whole of HS2. If that is an unrealistic timetable—if it should take much longer—heaven help us. This project has taken a long time to get to this point and will take more years than I would wish to complete—and we need it to be completed—so the idea that it is an unrealistic timetable to complete this project by 2033 seems to me a strange one.

The hon. Gentleman raised the question of electrification. I would simply remind him that, through 13 years in government, Labour electrified 10 miles of railway line. It is small wonder, when we actually started to electrify key main lines, that the expertise was no longer there. It is all very well Labour calling on us to do this, but we are the ones who are undertaking the modernisation of our railways. Through all those years when Labour was in power, the investments in our railways were pitiful by comparison with what we are doing today.

The hon. Gentleman also raised the question of HS3. He will be aware that Transport for the North is working on proposals for what is now being called northern powerhouse rail. That will be much more than a single railway line, and it will build the connectivity we need from east to west. I am waiting with interest to see Transport for the North’s proposals for the future.

The hon. Gentleman asked about the west coast partnership. He will understand that, on the day before this line opens, there will be Pendolinos running up the west coast main line, and, on the day after, there will be express trains running up HS2 to Birmingham, Manchester and Liverpool. I want that to be a smooth transition. We have to make sure the train drivers are trained. We have to make sure the staff are ready for the change. I do not envisage a situation where we sack all the staff one day and hire a new group the next. It makes sense to have a smooth transition, and that is what we are planning.

On the hon. Gentleman’s point about the private sector, let the Labour party hark back to the days of British Rail; we want a railway that is modern and progressive. Since the railways were privatised, after decades of decline, the number of passengers has doubled and new stations and railway lines have opened. This is a railway that is moving forwards, not backwards, as it would under Labour.

Airport Capacity

Andy McDonald Excerpts

Tuesday 25th October 2016 Commons Chamber

[Andy McDonald (Middlesbrough) (Lab)]

Although I thank the Secretary of State for giving me advance sight of his statement, it cannot pass without comment that this decision has been widely leaked throughout the media during the past number of hours in advance of it being sent to me and of being announced to the House. It is simply unacceptable for such a decision to be announced in this manner; it is totally disrespectful to Members and the House. Be that as it may, aviation is crucial to our nation’s economy and our future as an outward-looking trading nation. That will be even more the case in the light of the vote to leave the European Union, so we welcome the fact that a decision on the preferred location has now been made. I hope we can put the years of procrastination and delay behind us.

Despite the Secretary of State’s proclamation that the work is now complete, today’s announcement is not the end of the process, but merely the start of it. It beggars belief that it has taken Ministers more than a year since the publication of the Davies report even to make a start. Just what have they been doing for all these months, apart from worrying about splits in the Cabinet, or about the Foreign Secretary throwing himself in front of the bulldozers and former mayoral candidates triggering by-elections? There is no justification for dithering on this scale. The Secretary of State has failed to provide the shorter timescale for getting to the national policy statement that was set out by the Transport Committee.

We cannot bring back the time that Ministers have already wasted, so over the coming months it will be vital that there is proper engagement, and full and fair consultation with all the interested parties, so that we secure an outcome that stands the test of time. It is essential that there is proper forensic examination and scrutiny. Labour has consistently said that support for any such decision will be conditional: first, on sufficient capacity being delivered; secondly, on meeting the UK’s legal climate change obligations; thirdly, on local noise and environmental impacts being managed and minimised; and, fourthly, on the benefits not being confined to London and the south-east.

Labour fully recognises the need for runway expansion in the south-east of England, but following today’s announcement, it could be a decade before an additional runway is operational. We face capacity challenges here and now, but we heard nothing in the Secretary of State’s statement about how the Government intend to tackle the immediate shortage of airport capacity. What are his plans to utilise existing capacity in the south-east at Stansted and Luton—and, indeed, elsewhere?

There was also no mention of more utilisation of our international gateways. What message does that send to Stansted, Manchester, Birmingham and East Midlands, and what message does it send about the Government’s commitment to the so-called northern powerhouse and the midlands engine? Surface access to many of our international gateways around the UK needs improving, yet it is unclear what action the Government are taking. That is why Labour is calling for the new National Infrastructure Commission to examine the road and rail needs of airports outside the south-east. I urge the Secretary of State to support that proposal as well as Labour’s call to update the West Anglia line to improve rail services to Stansted, and to have better connectivity to Luton airport.

The Government must ensure that we do not fall short of our legal climate change obligations. We have but one planet, and it is essential that the UK plays a leading role in ensuring that agreed reductions in carbon emissions are met. Sustainable Aviation believes that UK aviation could reduce its carbon dioxide emissions by up to 24% by 2050 through the deployment of sustainable alternative fuels. Other countries have made considerable progress but, sadly, the lack of commitment and clarity from our Government caused the collapse of the British Airways green sky project. May we hear more from the Government about what steps will be taken to meet our climate change targets, particularly on developing sustainable fuels and progressing the consultation on the inclusion of aviation in the renewable transport fuels obligation?

After the Davies commission, the Government announced that they wanted to look further at environmental matters and, in particular, at air quality. As was revealed in The Guardian last week, David Cameron’s former policy adviser at No. 10 warned the then Prime Minister a year ago that he was “exposed on Heathrow”, because the Government did not have an answer about the effect on air quality. Indeed, the need for further work on air quality was the reason given for the delay, yet there was not a single reference in the Secretary of State’s statement to explain what work on that has been completed or how such work has informed his position. Will he publish—I hope he will—the additional work that he tells us the Government have done post-Davies so that those inside and outside the House can scrutinise it properly?

It is essential that the unacceptable levels of nitrogen dioxide and particulates from diesel engines are reduced because their direct impact on the health and wellbeing of tens of thousands of citizens simply cannot be ignored or tolerated. Direct measures are needed to lower emissions across the nation, especially in areas with a high concentration of emissions. I urge the Secretary of State to be unrelenting in his pursuit of improved air quality.

The commission recommended establishing an independent aviation noise authority, so will the Secretary of State immediately advise us about the Government’s intentions in that respect? Our air traffic management infrastructure is ancient, and modernisation would secure great dividends not only in terms of carbon emissions, but through considerable mitigations on noise and air quality. What steps is he taking to ensure that the modernisation that is so urgently needed is prioritised and progressed?

On our fourth test that the benefits of expansion are not confined to London and the south-east, it is essential that landing slots affording better connectivity and trading links for our nations and regions are maintained in the longer term. Any assurances that the Secretary of State can give in that respect would be most welcome. Will he also assure the House that the entire UK will be afforded a proper opportunity to engage in the construction process? Perhaps some of the HS2 Ltd protocols can be adopted. You never know, but we might be using UK steel.

The location of an additional runway cannot be the sum total of aviation strategy, so I urge the Secretary of State to press ahead with the full range of measures that are necessary to sustain our successful aviation industry. We must also ensure that the best interests of all the United Kingdom are served, and that the legitimate environmental concerns that have been raised, and that will continue to be raised, are fully addressed. We must do all that we can to protect our precious planet for the generations to come.

[Chris Grayling]

I will start with the point about the announcement. You know, Mr Speaker, how seriously I, as a former Leader of the House, take such issues. You will also be aware that this matter is highly price sensitive. Indeed, when the Airports Commission published its initial reports, they were launched in a way—they were announced at the start of the morning—that was consistent with a market announcement. That is the approach we have taken with this announcement. I have come to the House at the earliest opportunity to make a statement, and I will take all the questions that Members have for me.

On the timeframe, the hon. Gentleman asked me what we have been doing for the past year. We have been doing precisely what he asked about: working on the issue of air quality. Today and over the coming days, we will publish additional material so that Members, the public and others who are interested will be able to scrutinise in detail the work we have done and the route we have followed to reach this conclusion. Given the particular importance of air quality, he would expect us to make sure that we had done the additional work to satisfy ourselves that this can be done in line with what we all accept are our necessary priorities for reducing emissions levels.

The hon. Gentleman talked about what will happen during the coming months. As I said earlier, yes, there will be a full and proper consultation. That consultation is set out clearly in statute—[Interruption.] Despite the murmurings of Opposition Members, the consultation is set out in an Act that Labour rightly passed to improve the process of going ahead with such a national project. That is the process we will follow. We will do so in as timely a way as we can, but we cannot short-change a process set out in primary legislation.

On the capacity challenges here and now, there is absolutely nothing to stop new routes being set up tomorrow. We have capacity at Stansted, and new routes have come into Heathrow and Gatwick in the past 12 months. We are not preventing the airports around London that still have capacity—

HS2: North-west of England

Andy McDonald Excerpts

Tuesday 11th October 2016 Westminster Hall

[Andy McDonald (Middlesbrough) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Owen. I thank my hon. Friend the Member for City of Chester (Christian Matheson) for securing the debate. He passionately put forward his case on how HS2 can serve the interests of his constituents and the wider north-west. I echo his sentiment that HS2 has Labour’s backing. We welcome infrastructure investment, but part of the case for HS2 that convinced so many was that it was not simply another project designed for the benefit of the south-east but that it would benefit regions across the country.

Crewe is already a gateway station for the north-west, with regional and long-distance connections to the wider north-west, the east midlands and Wales, but there are significant capacity constraints that have an impact on reliability, which has been below industry targets, and there are bottlenecks at Colwich junction and around Stafford. This is also a problem for national freight operators, with much freight traffic on the west coast main line routed through Basford Hall yard, south of Crewe, and 43% of rail freight journeys using the west coast main line at some point.

The phase 2a link will help provide much needed additional capacity for freight and will improve reliability for commuter services, so it should be welcomed that the Government have brought forward the opening of the phase 2a link to 2027 as that will provide benefits to the north-west and beyond. However, it would be disappointing if a Crewe hub were not developed, as the fact that it is already a regional hub provides a springboard for further developing and improving connectivity with conventional rail. The benefits of stopping more trains at Crewe are clear, as expressed in David Higgins’s “HS2 Plus” report.

We welcomed the Government’s decision to accelerate the section of route from the west midlands to Crewe so that it opens six years earlier than planned in 2027, bringing benefits to the north sooner than initially thought, but the primary concerns are the rumours that phases 2a and 2b might be downgraded or delayed as the project increasingly comes under budgetary strain.

[The Parliamentary Under-Secretary of State for Transport (Andrew Jones)]

indicated dissent.

[Andy McDonald]

I see the Minister shaking his head—he can give me that assurance, then. In the words of the Public Accounts Committee report,

“the cost estimates for phase 2 are still volatile”.

There was a cost estimate from the Department for Transport that was £7 billion over the agreed £28.5 billion funding, and then £9 billion of potential savings were subsequently identified. We know that much of the savings are a result of more detailed and accurate estimates being applied, but the worry is that without a confirmed route and a firm cost estimate, and with budgetary pressures, the planned savings on phase 2 will be delivered by adversely affecting the expected benefits of the programme to the north, including the north-west.

I know the Minister will wish to reassure the House that he intends to preserve the integrity of HS2 to the north, because that will tackle the lack of capacity south of Birmingham and the poor connectivity not just between the region and London but within the north. It is crucial that we ensure that HS2 remains an infrastructure project that delivers for the whole country.

We have seen the uncertainty surrounding the proposed route changes in south Yorkshire. We do not want to see the same uncertainty on the western leg. It has been rumoured that if costs for the existing scheme cannot be brought down, one option under consideration is to delay or abandon altogether the section to Manchester and build the line only as far as Crewe, or to delay the line—an HS2 spokesperson said that the Treasury is taking the position that that nothing is ruled out.

I echo the concerns of my hon. Friend the Member for City of Chester and stress the importance of delivering a hub station at Crewe, which will benefit the sub-region, the north-west and the country as a whole, and of phase 2b, which ought to transform connectivity in the north and through the country. It would be disastrous for the north-west and make a mockery of the so-called northern powerhouse if phase 2 were to be downgraded.

We eagerly await the Government’s proposals for HS2 phase 2, but whatever the forthcoming route proposals, they must ensure that HS2 is an infrastructure project that delivers for the whole country. I hope the Minister can provide reassurances to that effect.

--- Later in debate ---

[Andrew Jones]

I have absolutely no doubt that when we consider those services we are all thinking ahead. I entirely buy the argument that transport investment is a driver of economic growth and, indeed, social progress—whichever mode of transport we are talking about. The Government are not buying trains because we like trains; we are buying them because they facilitate economic growth. That is the same with buses and social progress.

Taking HS2 to Crewe will play an important part in turning the town around. It is already a hub and it is also a town that is in need of investment, but HS2 is not a silver bullet in itself. We need to ensure that HS2 drives regeneration, not only in the places that it serves directly but far more widely. For the economic growth benefits of HS2 to be realised and to spread, local partners have an important role to play.

It is fantastic to see the north-west making such excellent progress in its plans for the region. The northern gateway partnership is already developing its growth strategy. That work, which is aiming to deliver around 100,000 homes and 120,000 jobs, will ensure the regeneration benefits of HS2 are felt right across the region. I have met with the combined authority, Transport for Greater Manchester, on a number of occasions, and I have done the same with the west midlands. It has been fantastic to see the ambition that those areas have for regeneration, recognising that, when HS2 arrives, it will present them with significant opportunities.

[Andy McDonald]

The Minister said it is too early to “lock down” the level of service, but he will undoubtedly appreciate that, if we cannot establish a bare minimum level of service, this becomes a rather pointless and redundant exercise. If he is not able to do that now, will he give some indication of when he will be able to give a little bit more detail about the basic minimum level of service we have been discussing this afternoon?

[Andrew Jones]

I will come on to timing a little later on. I turn to the matter of the north Wales main line and the work that is being carried out by the North Wales and Mersey Dee rail task force. I welcome its establishment and it is doing a good job of making the case for rail modernisation in north Wales and of developing wider growth plans for the region. This is an opportunity for north Wales to make the best case for investment in rail infrastructure and services. It is vital that a shared local vision is brought together with a defined set of prioritised outcomes based on economic growth, journey times, connectivity and modal shift. We will continue to work closely with that taskforce and with the Welsh Government to provide advice and assistance and to consider what can be jointly accomplished. We want the taskforce to advise us effectively on options for enhancements, including electrification, to address the regional economic needs and, of course, on the value of those options.

Many hon. Members have commented today. I will first respond to my hon. Friend the Member for Eddisbury (Antoinette Sandbach), who has raised concerns with me previously regarding the route north of Crewe, given the ground instability problems associated with the route crossing the Cheshire saltfield. I have been down that salt mine as part of looking at the winter preparations for the road network last year. I have to say it was a very interesting place to visit. I am aware of the scale of this enormous undertaking and I reassure my hon. Friend and other hon. Members that we are not ignoring that risk. HS2 Ltd has carried out surveys to better understand the geological issues in Cheshire and has commissioned further studies from third-party organisations. We are looking at a range of options in that area.

At this stage, I cannot provide any further information about where that part of the route will run. My right hon. Friend the Secretary of State will make an announcement on that during the autumn. My hon. Friend the Member for Eddisbury also made a further point about blight for residents affected by the potential routes. I will look at those cases with every sympathy, and I know she will write to me so I will look out for her letter.

I thoroughly agree with the points made by the hon. Member for Stalybridge and Hyde (Jonathan Reynolds) on transport being a driver of economic growth, on how capacity is necessary and on how, looking not too far ahead, we will have a rail network that is full, which is something we have discussed previously. He will not be surprised that we are in further agreement. To my hon. Friend the Member for Weaver Vale (Graham Evans), I say this is not a white elephant: it is a scheme that is a fundamental and critical part of our national infrastructure and it will happen.

To my hon. Friend the Member for Cheadle (Mary Robinson), I say yes, the debate really has moved on; it is not if but when this happens. The debate we should be having is on how we maximise the benefits that will flow from HS2 when it arrives. To the hon. Member for Wythenshawe and Sale East (Mike Kane), I say that I completely recognise that Manchester airport is thoroughly important, not just for Manchester but for the whole of the north of England with its power to connect it. I can also confirm that we are developing plans for HS3 alongside HS2; they are not separate schemes being developed in isolation. We are looking at integration of the two.

I can confirm that we have had absolutely no loss of ambition. I will run through some timing: on phase 1, we hope the Bill will complete its passage through the Lords very soon and we hope to start the build in the spring. The necessary work to prepare the Bill for phase 2a is underway and we intend for it to start its parliamentary journey next year. On phase 2b, the Government will announce our proposed route from Crewe to Manchester and from Birmingham to Leeds, south Yorkshire and the east midlands later this year. That will be an important moment and will begin to make the project far more tangible.

This is a project that is from the UK and for the UK. It is all about national benefits, including extra capacity on the network and developing skills, and companies from right across the UK will be able to benefit from the significant amount of work required. We view this as a critical part of our national infrastructure and of building a transport network and an economy that works for all. We have had a positive debate today. Though it has been focused on the north-west—and it is clearly right that this presents a huge opportunity for the north-west, for the city of Chester and for the whole region—it is a national project and we have to view it in that way.

Transport

Andy McDonald Excerpts

Monday 10th October 2016 Ministerial Corrections

[The Parliamentary Under-Secretary of State for Transport (Paul Maynard)]

This Government are making the biggest investment in our railways since the Victorian era, enabling more trains and longer trains to operate on many of our busiest routes. More than 563 new carriages are planned to enter service by the end of 2020.

[Official Report, 15 September 2016, Vol. 614, c. 1028.]

[Andy McDonald (Middlesbrough) (Lab)]

The service on Southern is officially the worst in the country, and passengers have endured appalling overcrowding for far too long. Removing hundreds of services a day has served only to exacerbate overcrowding on the services that survive. When will the Secretary of State bring to an end the misery of long-suffering passengers and intervene, or does he agree with the former Rail Minister, who effectively said that there are no circumstances that would warrant Govia Thameslink Railway being stripped of this franchise?

[Paul Maynard]

I am sure the hon. Gentleman will welcome the fact that more than two thirds of the services that were taken out of the timetable have now been put back in again. Our focus is on restoring normality to the service and putting the interests of passengers first. The service is improving on a regular basis, with more services returning to the full timetable, and I will focus on that to make sure that we get back to the full timetable.

[Official Report, 15 September 2016, Vol. 614, c. 1029.]

Letter of correction from Paul Maynard:

Errors have been identified in the responses I gave to the hon. Members for Kingston upon Hull North (Diana Johnson) and for Middlesbrough (Andy McDonald) during Questions to the Secretary of State for Transport.

The correct response should have been:

Oral Answers to Questions

Andy McDonald Excerpts

Thursday 15th September 2016 Commons Chamber

[Chris Grayling]

I am well aware of how strongly people in west London feel. I am also aware of how strongly people around Gatwick feel, albeit they are smaller in number than those around Heathrow. My hon. Friend is passionate about such issues and I can only assure her that the Government will have in mind the impact on noise and air quality and how that is dealt with as we reach a view on the Davies commission’s recommendations.

[Andy McDonald (Middlesbrough) (Lab)]

As a veteran of almost 12 weeks in post, I congratulate the right hon. Gentleman on his appointment. He is the second Secretary of State I have had the pleasure of shadowing. I welcome him and his new Ministers to their places and look forward to many discussions about transport in the months ahead.

A decision on airport expansion in the south-east is long overdue and has been made only more urgent by the vote to leave the European Union and the consequent need to demonstrate that the UK is open for business. Already twice delayed to avoid party political bickering inside the Tory party, there are now rumours that Ministers will be given a free vote. This is neither a constitutional issue nor a matter of conscience; it is a nationally critical infrastructure project. Will the Secretary of State tell the House the exact date on which he will confirm that the decision, whatever it is, will have the backing of the full Cabinet?

[Chris Grayling]

I am grateful for the hon. Gentleman’s words of welcome. He is underemployed in comparison with my previous shadow, who held two shadow Cabinet roles, so perhaps there will also be an opportunity for him to have additional responsibilities. I look forward to sparring across the Dispatch Box with somebody so much more experienced than I am in this role.

The decision is important for our nation’s strategic interests. I am new to this job, as the hon. Gentleman points out, and the Prime Minister is new to hers, so we want to ensure that we have done the necessary work and are properly informed before we take a decision. I did a lot over the summer to ensure that that was the case, including visiting the sites of all three proposals. I have carefully considered the issues and the Prime Minister is doing the same. We will reach a view shortly and will bring it to the House. It is right and proper that everyone in the House will be able to have a say in this important matter.

--- Later in debate ---

[Chris Grayling]

I am always delighted to work with my hon. Friend on improving the rail service and transport system in Cleethorpes. I fear that I probably will not be able to deliver on getting HS2 to go there.

[Andy McDonald (Middlesbrough) (Lab)]

HS2 is intended to be a jewel in the crown of British infrastructure, but as was revealed in the Public Accounts Committee’s report, it is losing some of its lustre. To be at this stage and still not know how much HS2 will cost, what the route will be and when it will open is unacceptable. The Government are quite clearly losing their grip on the project. Will the Secretary of State take this opportunity to say why his Department has failed to set a workable, realistic timetable for HS2 Ltd, and will he give a guarantee to deliver an entire high-speed railway?

[Chris Grayling]

I do not want to start my relationship with the hon. Gentleman on a bad note, but I have to say that that is a lot of nonsense. We have a proposal for an innovative railway line that is completing its journey as a hybrid Bill through the Lords, and we will start work next year. We aim to deliver the first stage, as planned, in the middle of the next decade, and later this autumn, we will set out the remaining route in detail. I am proud to do that for this important project for our nation.

--- Later in debate ---

[Paul Maynard]

We had a very productive meeting with my hon. Friend last week. She is a doughty campaigner on behalf of that line and I will continue to press for further advances on the issue, as she asks.

[Andy McDonald (Middlesbrough) (Lab)]

The service on Southern is officially the worst in the country, and passengers have endured appalling overcrowding for far too long. Removing hundreds of services a day has served only to exacerbate overcrowding on the services that survive. When will the Secretary of State bring to an end the misery of long-suffering passengers and intervene, or does he agree with the former Rail Minister, who effectively said that there are no circumstances that would warrant Govia Thameslink Railway being stripped of this franchise?

[Paul Maynard]

I am sure the hon. Gentleman will welcome the fact that more than two thirds of the services that were taken out of the timetable have now been put back in again. Our focus is on restoring normality to the service and putting the interests of passengers first. The service is improving on a regular basis, with more services returning to the full timetable, and I will focus on that to make sure that we get back to the full timetable.[Official Report, 10 October 2016, Vol. 615, c. 2MC.]

Govia Thameslink Rail Service

Andy McDonald Excerpts

Wednesday 13th July 2016 Westminster Hall

[Andy McDonald (Middlesbrough) (Lab)]

It is a delight to serve under your chairmanship, Ms Ryan. I congratulate the hon. Member for East Worthing and Shoreham (Tim Loughton) on securing this crucial debate and on his tour de force. We were all impressed by what he had to say.

After little more than two years, GTR’s operation of the Thameslink, Southern and Great Northern franchise has been an unmitigated disaster, with the targets on punctuality and reducing delays breached long ago and followed by a series of inadequate compromises between the Department for Transport and GTR. The views of passengers, and their intense dissatisfaction with GTR’s performance, are being managed rather than met by the Government. There is insufficient protection of the passenger and public interest in the reliable operation of these vital rail services, which are essential to both the national economy and the millions of passengers who rely on them.

GTR’s tenure has led to the worst punctuality ratings of any train operator in the country; a doubling in the percentage of trains that were cancelled or delayed by more than half an hour, from 3.9% to 7.4% of services which, again, is worse than any other operator in the last reporting period; an average of 50.9% of trains on time, one of the worst ratings in the country; and one in three Gatwick Express trains running late. The list goes on.

The latest Transport Focus statistics make for dire reading for GTR and the Government, with passenger satisfaction in decline to an unacceptably low level. Only 35% of passengers on the Southern metro and Sussex coastway lines regard the service as value for money, following the introduction of the remedial plan.

[Jeremy Quin]

Will the hon. Gentleman give way?

[Andy McDonald]

Will the hon. Gentleman forgive me if I do not? I want to give the Minister time to respond, and she has little enough.

As Members who represent constituencies on these lines know only too well, all these performance failures were visible on Southern GTR services well before any dispute with the rail unions over driver-only operation and prior to Southern services entering the Thameslink, Southern and Great Northern super-franchise in July 2015. We have also seen the operator of last resort, Directly Operated Railways, scaled back within DFT and removed from the Rail Delivery Group.

GTR is widely recognised as the worst train operator in the country, following a sustained period of cancellations, lateness, worsening industrial relations and failed planning that makes a mockery of the Government’s regular sermons on the benefits of rail privatisation. There is cross-party consensus on the need for GTR to be stripped of the franchise: my hon. Friend the Member for Streatham (Mr Umunna), the hon. Members for Brighton, Pavilion (Caroline Lucas), for Lewes (Maria Caulfield) and for Croydon South (Chris Philp), the right hon. Member for Arundel and South Downs (Nick Herbert) and many others have all called for that. Even GTR acknowledges that it could have the franchise removed if it fails to deliver on targets in the franchise agreement. In this increasingly fractious affair, why is it only the Government who are not contemplating removing the franchise or even retaining the threat as a means of improving performance?

The Opposition would like to see our rail services back in public operation, but to ignore the clear evidence of the essential service protection that the public sector provides through the operator of last resort is entirely reckless. Perhaps GTR’s accounts shed more helpful light on the extent of its relationship with DFT and the purpose it serves. Under a section entitled “Political Risks”, GTR states:

“It is not anticipated that any significant political change in direction would affect the existing contract. The company’s senior management continue to work closely with the DFT to ensure consistency of messaging to try to manage stakeholder expectations.”

That may be standard language to reassure shareholders and investors, but it also strikes me as evidence of an unhealthy relationship in which the Government are committed to preserving the GTR franchise, whatever the cost to passengers, staff or the taxpayer. The taxpayer is paying GTR an estimated £1.17 billion every year in management fees for this dysfunctional service, and that does not include the huge levels of investment in track and stations through publicly owned Network Rail every year, including the redevelopment of London Bridge.

Neither sickness levels nor industrial action are responsible for the misery that Southern commuters in particular have contended with for more than a year now. The decline in industrial relations is a direct result of the close relationship between the Government and GTR. When senior civil servants are quoted at public meetings stating to passengers that they “have got to break” rail unions, as my hon. Friend the Member for Nottingham South (Lilian Greenwood) said, the problem is entirely of the Government’s making.

Labour is clear that the Government’s failure to include meaningful penalties in the franchise is at the root of GTR’s declining performance. We call on the Government to strip GTR of the franchise. That is the only way in which sustainable improvements in performance can be achieved. The breach and default levels for service cancellations under the original franchise agreement with Govia have been consistently exceeded, and what we have seen in response is the imposition of a remedial plan cooked up between GTR and the DFT in February this year and kept away from prying eyes for three months. That raised breach and default levels for service cancellation, meaning that passengers would have to cope with up to 31,000 fewer services.

The Minister was absolutely right when she said in a debate on Southern in this Chamber almost exactly a year ago that high levels of delay and cancellation were

“an unacceptable burden on working families.”—[Official Report, 8 July 2015; Vol. 598, c. 105WH.]

That burden is worse today, and it is the direct result of the Government’s handling of this franchise—indulging GTR and failing to respond to consistent failure with removal of the franchise.

Let me turn quickly to the current dispute. Even the industry-funded Rail Safety and Standards Board has acknowledged that driver-only operated services

“may increase the likelihood of an event occurring or increase the severity of its consequence.”

The issue is whether risks to passengers increase when things go wrong if passengers no longer have a binding safety guarantee from a second member of on-board staff who is fully trained in safety-critical procedures. GTR’s proposed new role of an on-board supervisor will not be that of a guard or a conductor; it will lack critical safety training in carriage and passenger protection in the event of an emergency incident.

GTR and the Government have also claimed that there will be no deskilling or dumbing down as a result of the GTR proposals to extend DOO on Southern services, yet the Minister told members of the Transport Committee on Monday that no train that currently has a second person on board would lose that person, and that she would ensure that the safety-critical role is maintained. We hope she will confirm today that that safety-critical role will be maintained over the life of this and future franchises. Central to that is retaining the 12-week training requirement for the second member of train crew—whether that is a guard, a conductor or an on-board supervisor.

I note that the RMT offered last week to suspend its industrial action for three months, as long as GTR suspends the DOO extension plans for a similar length of time. It surely makes sense now for the Minister to invite the RMT to meet her at the earliest opportunity to discuss the terms of a settlement with GTR that would also apply to future franchises. That should allow both parties time to reach a conclusion to this dispute, if not to the performance problems that have dogged GTR since its inception, which we believe can only be remedied by removal of the franchise.

--- Later in debate ---

[Claire Perry]

It was not nearly good enough, but that was 10 percentage points up over the last six months. There was every view that performance was returning to the place where we needed it to be.

Since then—I will come to the issue of the industrial action—all bets are off. When people simply do not know how many staff are rostering in a particular depot, particularly the Brighton depot, where so many trains start and finish, it is impossible to run a reliable service. I have been to London Bridge and Victoria stations many times and travelled on the trains and I have been ashamed to be the rail Minister. I suggest that successive rail Ministers over many years in many Governments should share that sense of shame.

There seem to have been four fundamental failures in the industry that mean that when things go wrong, it is really hard to recover. It is the customers—the passengers who rely on the train services—who suffer. First, I submit to the House that there has been a disdain for people—for passengers—at the heart of the railway for decades. I have shared this anecdote with the House previously: a former very senior member of Network Rail said to me that the problem with the timetable is that the customers mess it up. Think about what that implies about what that person’s view of their job was: to run a system, not to move people.

Crowding is not really costed in any of the economic measures that successive Governments have used. There has just been an assumption that people will continue to cram on. It is more valuable to put a train on a long-distance service, where there is a discretionary choice of travel, than to relieve crowding on an overground service around London. That seems to me to be perverse.

Investment has been entirely focused on engineering improvements and almost never on reduction in delay. Why do we still have this “leaves on the line” problem every year? By the way, no one has ever calculated the economic consequences of leaves on the line. Surely it is not beyond the wit of our finest metallurgists to solve that problem, yet we just accept it. We plough on and look to shave five minutes off long-distance journeys.

Thameslink will deliver some significant benefits for people travelling through London. There are brand new trains and wonderful new stations such as Blackfriars, which nobody ever talks about. It is a wonderful station delivered without a trace. Nevertheless, the human cost of the Thameslink work on the travelling public was almost forgotten. I was not the Minister at the time and I do not even know under which Government it was planned, but a man came up to me at London Bridge station in tears and said, “You’re doing this so people can get from Cambridge to Brighton without disruption. That’s great, but I just want to get home to see my kids.” There is something flawed with the industry, because it does not value those people’s experiences.

The second failure is that, as Members know, the industry has a highly complicated structure. We have Network Rail, which is in a much better place now, post the Hendy review and Shaw changes. It has made some amazing hires. We have a franchising system that in some cases delivers huge benefits but in other cases does not. The problem with franchising is that if it is a very short-term franchise, nobody has an incentive to invest in industrial or passenger relations. Why would the staff care when the name on the nameplate changes every seven years?

[Andy McDonald]

They do care.

[Claire Perry]

They do care, but why would they feel an allegiance to a company the name of which changes every few years? The staff on the frontline care in extreme amounts, and we are all very grateful for that.

[Andy McDonald]

Will the Minister give way?

[Claire Perry]

No, I am going to continue.

Thirdly, we have an investment structure that is broken. The Government step in over and over again to fill the gaps and to buy rolling stock. By the way, the profits in the rail industry mostly accrue to the rolling stock leasing companies—the ROSCOs. If Members look at the shareholder structures to see where the profits are, they will see that they are with the rolling stock companies, not the franchise operators. GTR’s margin this year is going to be around 1.5% on this franchise. There is something structurally wrong with the financial structure of the industry.

The fourth and final problem is that the contractual levers are really poor. I have been asked repeatedly, “Why don’t you just take the franchise back?” The reason is that I cannot. GTR is not in breach of its franchise contract right now.

Oral Answers to Questions

Andy McDonald Excerpts

Thursday 30th June 2016 Commons Chamber

[Mr McLoughlin]

I will certainly consider the representations that the hon. Gentleman has made to see whether that is compatible with the overall rules that we want to introduce in public service obligations.

[Andy McDonald (Middlesbrough) (Lab)]

Does the Secretary of State agree that the sustainability and development of regional airports could be much enhanced by the increase in connectivity inherent in the additional capacity plans for the south-east? Given that such connectivity will deliver economic growth throughout the UK, what assessment has he made of the efficacy of any engagement with the regional airports in ensuring that once a decision is made, the proposals in the recommended option of Heathrow will deliver the desired development of our regional airports?

[Mr McLoughlin]

I welcome the hon. Gentleman to his position. I have been in this post for four years, and he is the fifth shadow Secretary of State I have seen and, I think, the 10th person to hold the Labour transport brief in nine years. I congratulate him on that. I also thank the hon. Member for Nottingham South (Lilian Greenwood) for the way in which she conducted herself while she was doing the job. Although at the moment she is sitting on the Back Benches, I am sure that that is only a temporary measure while certain things are sorted out.

If I may now come to the question—I have almost forgotten what it was—I think we all agree that regional airports play a vital role in connectivity. One of the issues about regional airports—this was alluded to in a previous question—is their accessibility to the London airport system. We have to consider such issues and some later questions may address them.

--- Later in debate ---

[Mr McLoughlin]

We are now back on familiar ground and I do not need to repeat what I said earlier. The simple fact is that I am very proud of the investment that this Government are putting into infrastructure. Infrastructure investment is 50% higher than it was during the last Parliament, and it is much larger than the amount put in by the previous Labour Government, so this Government are very committed to infrastructure investment. The hon. Lady talks about airport capacity, but there were airport capacity issues during the 13 years her party was in government, when it did nothing.

[Andy McDonald (Middlesbrough) (Lab)]

With the political and economic uncertainty following last week’s referendum vote, infrastructure projects have become more, not less, important for the future of this country. That is particularly true of our airports, which will have renewed importance in ensuring that the UK is a global, outward-looking trading nation. The comments made by the Prime Minister and, indeed, by the Secretary of State today have cast doubt on that. Does the Secretary of State not accept that kicking this decision into the long grass yet again is simply utterly unacceptable?

[Mr McLoughlin]

We are accused of kicking something into the long grass, but I have said that I hope to see a decision by the end of the year, and Opposition Members have not yet expounded which option they actually support.

--- Later in debate ---

[Mr Speaker]

I am extremely grateful to the Secretary of State.

[Andy McDonald (Middlesbrough) (Lab)]

As my hon. Friend the Member for Hove (Peter Kyle) said, Southern rail passengers are suffering the worst delays in the country and its staff are locked into an increasingly bitter industrial dispute. All those who work or rely on this failing service deserve much better. Does the Minister not think that by ruling out the cancellation of the franchise and by winding down the operator of last resort, Directly Operated Railways, the Department has no plan B and has effectively forfeited the chance to place any meaningful pressure on the company to improve performance?

[The Parliamentary Under-Secretary of State for Transport (Claire Perry)]

The hon. Gentleman only needs to look at the share price performance of the owning group to see that considerable pressure is being put on the company by the markets, by customers and by my Department. In my view, changing the franchise would do nothing. Everybody has to work together. There is a highly experienced management team already in place. We have an investment programme that is coming to an end. The first major part of London Bridge will open this summer. I urge everyone involved, including the union bosses who are taking out their members on completely unjustified action, to sort this out for the benefit of the hard-pressed commuters, who just want to get to work and get home to their families.

West Coast Rail Franchise

Andy McDonald Excerpts

Tuesday 14th June 2016 Westminster Hall

[Andy McDonald (Middlesbrough) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Brady. I thank the hon. Member for Carlisle (John Stevenson) for securing this crucially important debate. It is a pleasure to follow the hon. Member for Ross, Skye and Lochaber—

[Drew Hendry]

Inverness, Nairn, Badenoch and Strathspey.

[Andy McDonald]

I beg your pardon. I am going to talk about HS2 in my speech—it has been touched on already —

[Mr Graham Brady (in the Chair)]

Briefly.

[Andy McDonald]

Very briefly.

May I also briefly pay tribute to Mr Neil Caulfield, who tragically passed away last week? He was a wonderful Clerk to the HS2 Committee. He was wonderfully helpful and professional, and we will miss him. I pay tribute to him and to all the Clerks who support us through this work.

The west coast main line is the backbone of Britain’s railways. It services great cities and towns in England, Wales and Scotland. The issues raised today are vital to so many passengers, as more than 34 million journeys a year are made on the service and almost 7 billion passenger miles are travelled. As the hon. Member for Carlisle said, the west coast franchise, which is currently operated by Virgin, ends in April 2018, and the Department is running a competition to find an operator for the next franchise. Before looking to what the Government should seek from the operator of the next franchise, I would like to secure assurances from the Minister that there will be no repeat of the franchising fiasco of 2011-12. The Department conducted a competition and announced that FirstGroup had been awarded the franchise before having to cancel the competition and subsequently award it to Virgin at a not insignificant cost to the taxpayer. That caused a great deal of confusion. The railway industry needs to be able to have confidence in the mechanisms of contracting. We simply cannot have a recurrence of that debacle.

The hon. Gentleman mentioned Euston station, which is considered to have particular problems. We have heard that it is often overcrowded and difficult to navigate. It is awkward to buy tickets, and there is a short time between announcement and departure. People speak of the unseemly scrum once the information appears on the screens. In its February 2016 report, “InterCity West Coast rail: what passengers want”, Transport Focus recite passengers describing the experience as “stressful and unpleasant”. The national rail passenger survey of west coast passengers in part reflects that, with a rating of 11 percentage points below average.

The good news for passengers at Euston is that it will be redesigned to become a modern, easy-to-navigate, integrated station. The bad news is that things will probably get worse before they get better. I am pleased that the Government have given assurances to Camden Council about the £2.25 billion redevelopment of Euston proposed by Labour, consequent on the passage of the High Speed Rail (London – West Midlands) Bill. When the station is completed, passengers will experience less crowding and improved connectivity among rail, bus and taxi services. Routes for walking and cycling through the local area will be created. That will go some way to addressing passengers’ concerns, but it is often the case with major station improvements—we see this at the moment at London Bridge—that passengers are significantly disrupted and inconvenienced during the period in which the work is taking place. I would like some assurances from the Minister about those matters.

Sir Jeremy Heywood, the Cabinet Secretary, is currently analysing HS2 to trim costs and gauge whether the £55 billion project can keep within budget. There have been rumours that the Government might entertain plans to alter the route of HS2 or their plans for an integrated Euston station, and instead have the high-speed trains run only to Old Oak Common. That would put a great deal of stress on Crossrail, which was not planned to include that extra capacity. I must admit that I find it strange that, after Report and Third Reading, and given the exhaustive and exhausting legislative process for HS2 to date, the Government are again having to re-assess it. Although close attention to and scrutiny of cost is absolutely vital, I am concerned that what appears to be a comprehensive review of key issues within HS2 runs the risk of undermining confidence in the Government’s capacity to progress the project as planned and agreed. Will the Minister clarify what Sir Jeremy is considering? If the plans for an integrated Euston station are still on track, what will be done to mitigate the impact on west coast services, given that the number of platforms available at Euston to the west coast service will reduce from 18 to 11? Once it is up and running, HS2 will provide extra capacity, relieve congestion on the line and improve passenger experiences. Those are some of the many benefits of HS2.

The hon. Member for Carlisle spoke about fares and ticketing, which are a common source of frustration for passengers, who too often feel they get poor value for money from train operating companies. One of the consequences of privatisation is that we were left with the most expensive and confusing ticketing structure in Europe. Many passengers struggle to understand fare structures and pricing; the difference in cost between tickets strikes people as illogical. The discrepancy between fares, especially if someone needs to travel at short notice—as might be the case for a family funeral—often leaves passengers feeling that the train operating companies have ripped them off.

Compared with the national average, west coast performs relatively well on value for money—however, that is against an exceedingly low baseline of just 48%. Frustrations over fare structure and pricing are common passenger complaints. There is more that the next franchise holder can do in that regard, including simplifying fare structures, making the purchasing experience less complex and more transparent, lessening the cost discrepancies between similar journeys, and allowing passengers to find the best tickets available for their journey.

[Mr Jim Cunningham]

One of the reasons why the fare structure is complicated and expensive is that, over the years, successive central Governments have gradually reduced the subsidy for fares.

[Andy McDonald]

My hon. Friend makes an excellent point. There is always a balance between fares and subsidy, and Governments of every colour have to struggle with that. On that very point, there are certainly improvements to be made, but I fear that as long as the Government persist with an exclusively privatised rail network, the feeling that passengers are receiving poor value for money will persist, and understandably so. Virgin runs one of the better services in the country on the west coast, but it is a poor comparison with our recent experience of when the public sector was presented with the opportunity of running passenger services. We need only to compare Virgin’s receipt of £2.5 billion in direct subsidy, and the £500 million it paid out in dividends between 1997 and 2012, with the performance of Directly Operated Railways between 2009 and 2014, which ran on a much lower subsidy. Under public operation, the east coast returned the highest level of premium to the Government—over £1 billion—while achieving passenger satisfaction ratings that surpassed all other long-distance operators. The public are absolutely right when they say they believe that rail should be in the public sector—they have good reason to do so.

Commuters and passengers desire free and decent wi-fi on trains; it is an important matter for them. We often get free wi-fi when we buy cup of coffee, but people who spend a fortune on a train ticket may have to rely on an unreliable wi-fi service. A good service is clearly beneficial for those people—both for leisure purposes and for conducting business as they travel. One hopes that attention will be paid to that.

The hon. Member for Carlisle spoke about the potential for a residual value mechanism, which would reward train companies for investing in things such as stations, where the return on their investment would go beyond the period of the franchise. I think the hon. Gentleman hoped that that would be a way to ensure better long-term thinking and investment, which is a reasonable point, but I caution against over-eagerness for the idea, because improving stations should not depend only on train companies deciding that there is an overwhelming case for them to make significant profits. Train operators do not have a great record of investing their own capital in stations, and increasing residual value mechanisms might make it harder for a national public operator or local authorities to improve facilities later.

The franchising system has failed to deliver clean, safe, accessible and properly staffed stations in too many areas, and tweaking the arrangements is not the best or most cost-effective way of making services better for passengers. I trust that the Minister will deal with the issues and concerns mentioned and, with that, I bring my remarks to a close.

--- Later in debate ---

[Claire Perry]

That is an important question. We can have as-good-as-we-can-get connections right now, but there are troughs and blind spots, and we are working with industry, on a TOC-by-TOC basis, to improve those connections, so there are no not spots along train routes.

HS2 will clearly have a major impact on this line. It will add much-needed capacity and will have a very positive impact for customers who are looking to travel quickly between cities. It is of course a vital programme. We will look to appoint franchisees, both in this competition and in the west midlands, that can work with the HS2 operators in the run-up to HS2 opening, and we want the competitions to procure franchisees that can work with HS2 and Network Rail during the construction works. I have to say that the lessons learned from London Bridge are scarred on my ministerial portfolio.

[Andy McDonald]

Where?

[Claire Perry]

They are well concealed. No one correctly estimated quite how tough it is to do major improvement works on a very crowded and highly operational railway. Lessons have absolutely been learned, and will be applied in the works at Waterloo this summer on the south west franchise, where we are bound and determined not to make mistakes. The prize will of course be a wonderful new station, I hope with a beautiful arch somehow reinstated, and many more services. That will be a prize worth having, but we are absolutely bound and determined to avoid the disruption that we saw at London Bridge.

I slightly disagree with the view of the hon. Member for Middlesbrough that residual value mechanisms are not really relevant, because if a public company or public authority wants to invest in something, it wants to ensure that it will get a return from it on behalf of taxpayers. That is only right and proper. My hon. Friend the Member for Carlisle is right that that has been a barrier to investment in franchising. We have developed a residual value mechanism in the Department, and it has been used in the latest competitions. I accept that it is not quite what he is looking for, and I am always happy to meet him and have that discussion, but we want to use that mechanism in the upcoming west coast franchise because we want to ensure that the stations along the route and other assets, such as smart ticketing, are supported.

I want to mention smart ticketing before I conclude. It is a passion of mine to get rid of the tangerine tickets, which look like something out of the 1970s, and move to something that far better suits what customers are using today: mobile technology. People will have seen that we have put those requirements into franchising, and we will do so in this case. The adoption of smart ticketing is moving very quickly in this country.

[Andy McDonald]

I do not think that the Minister has mentioned Sir Jeremy Heywood’s review of the potential use of Euston and Old Oak Common.