Cost of Living

Baroness Bray of Coln Excerpts

Wednesday 16th May 2012 Commons Chamber

[Caroline Flint]

We saw what was happening and put a cap on those fares. This Government have decided to remove the cap and to let fares rise way above inflation, but we have said that when they do rise above inflation they should do so by no more than 1%, so we are not going to take any lectures about supporting families from the Tories and Liberal Democrats in this Government.

The truth is that in every corner of the country families have huge worries when they look at depressed and frozen wages, more part-time work and more people who are long-term unemployed; and every week families worry about energy bills.

Energy bills have now risen up the agenda for families and are one of the biggest worries that they face. The latest figures from Ofgem put the typical annual energy bill at £1,310, so what is the Government’s answer? At their energy summit last year, they told people:

“Check, switch and insulate to save.”

But, in an answer on 18 April to one of my parliamentary questions, we found out that fewer people switched energy supplier in the final month of 2011 than ever before. I do not remember seeing that in one of the departmental press releases.

The Government said that energy efficiency was a no-brainer, but the Warm Front scheme has collapsed, the energy companies are not delivering the measures that they were meant to and the green deal is in chaos. In last week’s Queen’s Speech the Government promised

“reform of the electricity market to deliver secure, clean and affordable electricity and ensure prices are fair,”

but the irony of the Government’s electricity market reforms is that one thing they do not do is reform the electricity market. There is no change to the way in which energy is bought and sold, nothing to open the books of the energy giants and nothing even to improve competition in the energy market and break the stranglehold of the big six: no change, no hope and, I am afraid, not a clue how to help families affected by those pressures on the cost of living.

Our energy market is not working in the public interest. Confidence in the energy companies is at a near-record low, complaints have soared and today five of the big six energy companies are under investigation by Ofgem. Yet they see fit to award themselves huge bonuses totalling millions of pounds and even discounts on their own energy bills, while leaving their customers to struggle.

Last winter, more than 6.6 million families and pensioners across the UK could not afford to heat their homes properly. The number of pensioners dying from hypothermia has doubled in the past five years. Yet four out of five people are paying more for their energy than they need to. Energy prices are already at near record levels, and last year, when wholesale prices rose, every energy company put up its gas and electricity prices, in some cases by as much as nearly 20%. Yet when wholesale prices fell this year, none of the companies cut both their gas and electricity prices. British Gas, for example, cut only its electricity prices, even though it has twice as many gas customers. On the other hand, EDF, which has significantly more electricity customers, cut only its gas prices. Now, with increases in wholesale prices on the horizon again, British Gas, Britain’s biggest energy supplier, is threatening yet another round of price hikes.

These are not the signs of a healthy, functioning competitive market; they are the symptoms of a market that works in the interests of the energy companies, not of the public. There is a reason the market works like that. We have companies that both produce and retail power. They generate the power and sell it to themselves, and then on to the public. When wholesale prices are high, the generation side of the business makes big profits; when wholesale prices are low, the retail side of the business makes big profits. Either way, the energy companies always make big profits and customers always foot the bill.

That was exactly what the respected Institute for Public Policy Research think-tank found a few weeks ago. Its research shows that if the market were truly competitive, efficiency savings alone would knock £70 a year off the average bill. It reckons that over 5 million households in the UK are currently being overcharged and that if something were done about it they could see savings of at least £300 a year. That is why we have said that all energy suppliers should have to sell the power that they generate into an open pool from which anyone could bid to retail to the public. That would allow new firms to enter the market, increase competition and help to drive down bills. Of course it would not be popular with the big energy companies, but unlike the Government, Labour Members are putting the interests of the public ahead of those in the energy industry.

[Angie Bray (Ealing Central and Acton) (Con)]

It is all very well for the right hon. Lady to recite a catalogue of problems, but I am scratching my head about the record of her party in government, when prices were going up and we all had problems. I was not aware that the Government of the time were stepping in to look after consumers as prices rose. It is worth pointing out, of course, that Labour’s own leader was Energy Secretary at the time.

[Caroline Flint]

This Government have now been in office for nearly two years. The truth is that—

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[Mr Davey]

I was just about to come to that measure. My hon. Friend will know that our right hon. Friend the Deputy Prime Minister announced that package, which will be a big help, last month.

On our agenda for helping consumers in a practical way, I should like to highlight three things—they are part of our short-term approach to ensure that we help consumers and get more competition in our markets so we can make it easier for people to take advantage of good deals.

[Angie Bray]

Will my right hon. Friend give way?

[Mr Davey]

I will in a second.

First, the consumer deal was agreed with the big six last month and announced by my right hon. Friend the Deputy Prime Minister. Secondly, I have pushed collective switching since becoming Secretary of State for Energy and Climate Change, following on from the work I did as Minister with responsibility for consumer affairs. Thirdly, Ofgem is working on tariff simplification. I will describe the detail of the practical measures that we are taking and that the previous Government never took after I have given way to my hon. Friend.

[Angie Bray]

Talking about energy is important, but I would like to draw my right hon. Friend’s attention briefly to another important utility in people’s lives—water. Water rates are a big cost of living and are particularly frustrating in London, given that we are under serious drought orders, despite the rain tumbling down almost every day. Particularly galling is the discovery that the very slow pace of plugging water leaks is apparently well within the target range set by the water regulator. If the water regulator is not on the side of consumers, who is?

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[Gavin Shuker (Luton South) (Lab/Co-op)]

I am extremely grateful to you, Mr Speaker, for calling me towards the end of the debate. I promised a little variety if I were called. I know that many issues to do with the cost of living have been raised in the course of the debate. In a sense it is hard to narrow them down to one or two, but I wish to refer to a few problems with regard to utility bills, particularly water bills.

We know that we in this country are facing not just some of the toughest global economic times but, as we have highlighted, a very tight fiscal contraction—I nearly said “contradiction”, which might actually be the right term—in the UK economy. Against that backdrop, there is a cost of living crisis. We have heard from many Members of all parties about the rising cost of energy and fuel and the inflation-busting rises in transport fares.

Back in February, I had the opportunity to go to the university of Leeds, where there is a brilliant research centre on water policy. While I was there, I gave a speech in which I talked about the consensus that there has been about the privatised water industry for the past 20 or 25 years. That consensus has stretched across both major parties, customers and companies. It involves a relatively low-risk settlement for investors, with reasonable levels of investment in water infrastructure and rising standards of water quality. Crucially, customer buy-in has also taken hold over the past 20 years or so.

In that speech, I laid out my concern that we risked walking into a perfect storm this year. We have drought conditions, and sadly, there was very little in the Gracious Speech about concrete action on the rising cost of water. While that concern exists there is every chance that, just as the Government and Opposition have rightly targeted energy bills in recent months and years, we will have to take similar action on water as people’s dissatisfaction with the service that they are receiving continues to grow.

[Angie Bray]

One problem I raised earlier in the debate is that the regulator sets soft targets on plugging leaks. One of the most frustrating things for my constituents is finding themselves paying water bills in a drought while the rain is plummeting down. Does the hon. Gentleman agree that it is because the leaks are not being plugged that we are still in a drought, and that we need tougher targets?

[Gavin Shuker]

The hon. Lady makes an excellent point. Ofwat, the industry regulator, lays out tough targets on water companies reducing leakage in some places, but not so tough targets in others. The fundamental problem is that if the cost of water being lost is less than the cost of making the repair, it is not economically viable for water companies to make the repair. That is why we need comprehensive action and a comprehensive water Bill, rather than a draft Bill, in this Session.

Civil Aviation Bill

Baroness Bray of Coln Excerpts

Wednesday 25th April 2012 Commons Chamber

[Angie Bray (Ealing Central and Acton) (Con)]

It is absolutely true that Boris Johnson, Mayor of London, has always opposed the third runway at Heathrow. I live in west London and represent a west London seat, and he is right to do so given the threat a third runway would pose to the health of west Londoners. Ken Livingstone, the Labour party candidate, has also always opposed expansion at Heathrow airport. Indeed, this is one of the few topics on which all three main parties in the London mayoral campaign agree.

[Graham Stringer]

The hon. Lady is right in what she says, but all three mayoral candidates are wrong on this matter.

It is completely legitimate for any constituency MP, including the Secretary of State, to oppose what they think their constituents do not want. However, it is also incumbent on any Government to consider the national interest, not just the interest of people representing west London. Exactly the same argument is used about High Speed 2, and the analogy is a good one. I chair the all-party group on high speed rail, but if somebody was driving High Speed 2 through my constituency, I would oppose it, because I would like to carry on being an MP and representing my constituents. That is a reasonable thing for an MP to do, but I also know that HS2 is good for the economy. Similarly, I know that constraining runway capacity in the south-east is extremely bad for the economy. It will do no good for the environment; it will just strangle the British economy.

Cycling

Baroness Bray of Coln Excerpts

Thursday 23rd February 2012 Westminster Hall

[Dr Huppert]

Absolutely—managing road space is key. Of course, a cyclist takes up a lot less road space than a car user, so when we move people over to bikes from cars we actually free up space, which is very valuable. I emphasise the point that the hon. Lady makes about cycling being a cross-party issue. There are differences between us in the parties, but I hope that this debate will not become a party political knockabout. I do not think that any of us wants that to happen; this issue is too important to the public.

The reforms that we need are not new. Many of the proposed reforms that we will hear about today have been called for by cyclists for years. National organisations such as CTC, which was formerly the Cyclists Touring Club, and local groups such as the Cambridge cycling campaign have worked very hard for sensible policies and support. As a party, the Liberal Democrats have been pushing for those policies for many years, and I am delighted that somebody from my party—the Under-Secretary of State, my hon. Friend the Member for Lewes—is the Minister with responsibility for cycling now.

We have been able to make some progress. Just recently, some extra money was provided for cyclists, with £7 million going to improve cycle-rail integration, which is absolutely critical. Someone can do a huge amount with a train and a bike, and it is very important that cyclists have places to park their bike and that they can get their bike on the train. I have been working for a long time to achieve some of those things at Cambridge station.

[Angie Bray (Ealing Central and Acton) (Con)]

I congratulate my hon. Friend on securing this debate. On the point about trains, I have been working very closely with the Ealing cycling campaign, specifically about the fact that not everyone wants to cycle all the way to work. Sometimes, people want to cycle to the train station, get on the train and then be able to get off the other end. Does he agree that it is very important that we encourage more train operators to make it easier for people to take their bikes on trains and also that stations, including the parking centres, are made more cyclist-friendly?

High-speed Rail

Baroness Bray of Coln Excerpts

Tuesday 10th January 2012 Commons Chamber

[Justine Greening]

It is fair to say that our focus must be on making sure that the Y network and, in particular at this point, phase 1 of that network happens. I am happy to discuss with the Scottish Government their proposals and ideas for how we broaden that network further in the future.

[Angie Bray (Ealing Central and Acton) (Con)]

I very much welcome the statement, particularly confirmation that the station at Heathrow will go through in phase 2. Does the Secretary of State agree that when phase 2 is completed and there is a direct link from the north to Heathrow, that should make a significant contribution to reducing the pressure of domestic flights at Heathrow?

[Justine Greening]

I agree with that. We have estimated that around 4.5 million air flights a year will transfer on to high-speed rail as a result of this.

High Speed 2

Baroness Bray of Coln Excerpts

Thursday 13th October 2011 Commons Chamber

[Andrea Leadsom]

I wish to make some more progress. Families up and down the country are feeling the pinch desperately. We are in an economic crisis, yet this project is costing the taxpayer £1 billion even before a single piece of track is laid in 2015—that sum is just to pave the way for HS2.

I wish now to discuss the ludicrous time frame. Nothing is going to get built before 2026. When I commute between Euston and Milton Keynes in peak hours, as I often do, it is not a case of, “Can I get a seat?”; it is a case of, “Can I physically get standing room on the train?” There is a massive capacity problem right now, and it cannot wait until 2026. It certainly cannot wait for 21 years, until the full “Y” is completed. Man might not land on Mars by 2032, but it is entirely possible that there will be technological changes by then that mean that HS2 is out of date before it is even finished.

[Angie Bray (Ealing Central and Acton) (Con)]

Does my hon. Friend not accept, however, that HS2 was a manifesto promise that was extremely valuable to people like me who were campaigning against a third runway at Heathrow? We were going to put people on trains, not planes, and phase 2 of this project will deliver precisely that.

[Andrea Leadsom]

I thank my hon. Friend for that intervention. All I can say to her is that when the facts change, we should change our minds. HS2 has not fulfilled its early promise. We simply cannot say that we will spend £32 billion because we broadly scoped something out in our manifesto that looked as if it would deliver the earth.

High-Speed Rail

Baroness Bray of Coln Excerpts

Thursday 31st March 2011 Westminster Hall

[Andrea Leadsom]

I thank my hon. Friend for those remarks. Ever since Lord Adonis introduced the proposal, I have opposed it, as I am sure my right hon. Friend the Minister will recall.

[Angie Bray (Ealing Central and Acton) (Con)]

The proposal was, of course, in our manifesto. That is a particularly important point for my constituency because we were deadly opposed to the third runway at Heathrow. One of the most important alternatives our party suggested was putting people on trains rather than planes. I appreciate that the proposal will not make a difference to travel from Birmingham, because there are no planes from there to Heathrow but, when we push up north, it could make a significant difference to the use of domestic flights to Heathrow. For that reason alone, it is very easy for me to support the proposal.

[Andrea Leadsom]

I agree absolutely with my hon. Friend. We desperately need to improve dramatically the capacity in our train infrastructure. I hope that she will bear with me, because I intend to show that we can achieve that without needing to spend the amount of money that we are talking about for high-speed rail.

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[Frank Dobson]

I do not wish to be rude, but the only thing to add to the hon. Gentleman’s contribution is, “Or I will eat my hat.” I do not have the faintest idea which of those estimates is true, and the odds are that neither will prove true. He knows that as well as I do. We should not be whacking in all this money on the basis of estimates that nobody can back up. All we are really faced with is the proposition that we should support a fast shuttle between Birmingham and London.

[Angie Bray]

Will the right hon. Gentleman give way?

[Mr Charles Walker (in the Chair)]

Order. We are now in the 11th minute of the right hon. Gentleman’s speech. If hon. Members wish to speak they should stop intervening. If they do not want to speak, they can continue to intervene.

[Angie Bray]

I will be very brief. The right hon. Gentleman’s case seems to be that we should never do anything on the basis that we might not be absolutely certain about it. Sometimes projects have to be started. If we never start a project, we will never get any progress.

[Frank Dobson]

I will finish on that point. I was always a strong supporter of the channel tunnel and the channel tunnel link. When the same preposterous railway strategists came up with a proposal to place the terminus for High Speed 1 in a cave under King’s Cross station, I was among those who led the opposition to that and proposed St Pancras station instead; we were not entirely nimbyist. Whatever anybody says, that has been a brilliant success. I do not believe that the people who come up with these proposals have done the work properly. If we are to have a proper high-speed network, this is the last way and last place in which to start it.

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[Graham Evans]

I am most grateful to my hon. Friend for his intervention. Varying and conflicting figures are bandied around, but there is a fundamental issue that was mentioned earlier. These train stations will not be built and these train lines will not reach my constituency until the 2020s. I have a young family and I am thinking of the futures of my children and my children’s children. It is very important that we make these very difficult decisions now. We could argue all day about conflicting figures, but it is very important that we push ahead with this project, which is important for our country’s future, including that of our children and our children’s children.

High-speed rail gives businesses the gift of time. Anyone who has a business background, as I do, knows the truth of the old saying, “Time is money”. In this case, that means more than slashing travel times to less than 80 minutes between Manchester and London. Neil Stephenson, the chief executive of a Newcastle-based IT firm, put it best in a recent article. He wrote:

“The failure of Britain’s transport system translates into missed meetings, unexpected overnight stays, disappointed customers and frazzled staff. A quick, cheap, reliable train service means I can build a customer base in places our employees couldn’t previously service without expensive hotel bills and missed night-time stories for their kids. And it means I can recruit from the high-end IT talent pools of London. These are tangible benefits that will help me build my business.”

[Angie Bray]

Would the business case for high-speed rail be even better for some of the businesses up north if there was a stop on the main route at Heathrow? Part of the case that is made for extending high-speed rail up to the north is that business men who want to travel abroad and need to get to Heathrow could go on a train rather than a plane. Therefore, would it not be sensible and would it not make the business case even more persuasive if Heathrow was on the main route, which of course it was in some of the alternative proposals?

[Graham Evans]

I am most grateful to my hon. Friend for that very good point, but perhaps the Minister can answer her question in her summing-up.

Oral Answers to Questions

Baroness Bray of Coln Excerpts

Thursday 27th January 2011 Commons Chamber

[Mr Hammond]

I am aware of the relevance of the A63, having sat in a traffic queue on it not so long ago. The Highways Agency budget for the current spending review period has been allocated to schemes that have been approved to proceed, so there will be no more funding available during the funding review period. However, that scheme is value for money and I expect it to go forward in a future spending review period.

[Angie Bray (Ealing Central and Acton) (Con)]

5. What assessment he has made of the effects of the ending of the west London extension of the congestion charge zone.

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

The removal of the western extension of the congestion charging zone is a devolved matter for the Mayor of London.

[Angie Bray]

Does the Minister of State agree that one of the beneficial effects will be for those who live or try to run small businesses around the perimeter of the zone, for whom life was made very expensive? However, perhaps the biggest benefit will be for City Hall in the restoration of a reputation for proper democratic governance.

[Mrs Villiers]

My hon. Friend has a strong record in her former capacity as a London Assembly Member for representing the views of residents on this issue, as she has in her current capacity as the hon. Member for Ealing Central and Acton. There are always pros and cons to be considered in relation to the impact on business of congestion charging schemes. No doubt when the Mayor made the decision on the western extension zone he will have taken on board her concerns about the impact on small businesses on the periphery and boundary of that zone.

Transport (CSR)

Baroness Bray of Coln Excerpts

Thursday 25th November 2010 Westminster Hall

[Angie Bray (Ealing Central and Acton) (Con)]

I am delighted to contribute to the debate under your chairmanship, Mr Gray, and I offer my congratulations to the hon. Member for Liverpool, Riverside (Mrs Ellman) on securing this important debate.

I am going to echo many of the remarks already made by colleagues. Given the economic situation that the coalition Government inherited, we might have expected a transport settlement that was significantly grimmer than turned out to be the case. I congratulate the Department for Transport on doing so well in difficult times. We can all be relieved, to say the least.

I speak as a London MP, and I will unashamedly limit my remarks to London. Hon. Members will be glad to know that I also intend to keep my remarks brief. In my view, London has done rather well out of the transport settlement: Crossrail, tube upgrades, Thameslink and extra rolling stock are all good announcements for London. I know that hon. Members from other regions often view London as being rather greedy in its funding needs. However, I must point out that London is our capital city, and it will be one of the great driving forces behind getting back to economic growth. I cannot resist the danger of irritating hon. Members even further by directing their attention to an interesting article in The Economist that points out that investment in capital projects such as those in transport in London and the south-east tends to get a much better return than investment in other regions. Investment in transport projects around London is always money well spent.

[Martin Horwood]

I would like to point out that I was not accusing London of being greedy. I welcome investment in many London projects, particularly Crossrail, which will enable people to get into London, through it and out the other side quite quickly.

[Angie Bray]

I thank the hon. Gentleman for that additional helpful remark. Crossrail has always been a huge issue for my constituency and it sits at the heart of our plans for regenerating Ealing and Acton town centres. We hoped so much to get the news that the project would definitely go ahead, and there was a huge sigh of relief around my constituency once that announcement was made in the comprehensive spending review. We hope that Crossrail will bring greater numbers of visitors to both town centres. It will be our task to find ways of persuading people off the Crossrail trains and into those town centres, where we hope that they will spend considerably more money. I understand that there may be some time slippage in the Crossrail project, but I suspect that that may also be due to tunnelling problems that have been encountered. Nevertheless, it is great to know that the project is going to go ahead in its entirety.

I have a plea for the Minister. Ealing Broadway station is one of the busiest transport hubs in west London. It is also one of the most hazardous, with steep stairs, no disabled access to the platforms and a small ticket hall that becomes crowded to an incredibly dangerous degree. Can work be expedited at that station, if at all possible? I hate to say this, but it is an accident waiting to happen.

The problem has been that people living in Ealing have been told for so many years that they cannot have any improvements because Crossrail is just round the corner. As we all know, however, Crossrail has been just round the corner for decades. Now that it really does seem to be on the home straight—in sight—please can there be no more delay for Ealing Broadway station? We have been waiting somewhat impatiently for the option designs for the stations, but I am now hoping to have a meeting with representatives of Crossrail in the next couple of weeks, so that we can see those more detailed options.

The London tube upgrades are another essential investment that will now go ahead. All of us experience the London underground at some stage as we spend time here in the capital city, and I think that all of us would say that the London underground broadly delivers a reasonable service, albeit that we sometimes feel like we are being herded into cattle trucks, particularly at certain times of the day. The problem is that there are continual and frequent problems on all the lines at one stage or another.

The signal box at Edgware Road is a good example. I am reliably told that it dates back to the 1920s. It sits across some incredibly busy and important lines. When we consider that so many passengers are under the control of a signal box that goes back that far, we recognise the importance of getting the London underground up to date if London is to retain its position as one of the world’s premier cities, and as we move back towards economic growth.

I was delighted to hear that the Thameslink programme had been given the green light, so to speak. That will be great news for taking pressure off many of the other services going through London and into and out of London. I was particularly pleased to hear today the announcement of extra rolling stock. West London services are very congested for quite a lot of the time, particularly during peak hours. A recent survey conducted by a local transport group showed that a very large percentage of passengers going in and out of central London from all the stations across Ealing have been finding not only that the trains are impossibly crowded, but that quite often they cannot get on them at all. First Great Western has been putting in bids for extra rolling stock for some time. I hope that as the extra rolling stock is rolled out, the Minister will have a particularly keen ear for the bids from First Great Western for extra help on some of those west London services.

Obviously, the less popular flipside of the coin is the fare increases. There is no doubt about this. No one likes having to pay more for a journey that at best is only ever the same, but quite often seems to be getting worse as the carriages get more crowded or there are delays or other problems. Clearly, however, a balance must be struck between the interests of taxpayers and of passengers. That is always the problem.

The hon. Member for Liverpool, Riverside says that she fears that higher fares will encourage more people off public transport and back on to the roads. I accept that that may well be something to be concerned about, but surely it is equally true that only if we can provide new, modern, improved public transport will we encourage more people to use public transport. That is where the difficult balance lies. It always has to be a balance, and that balance has to be set, of course, in the context of what the public purse can afford.

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[Jim Fitzpatrick]

No, I do not accept that position either. The year before the crisis hit, we were borrowing 2.4% of GDP, compared with the 3.4% that we inherited from the previous Conservative Chancellor, the right hon. and learned Member for Rushcliffe (Mr Clarke). Almost all our borrowing financed capital investment in schools, hospitals, road and rail.

The second myth about our record is that even if the public finances overall were under control, we were spending too much. We do not accept the allegation that what we were spending on schools and hospitals was excessive given the size of our economy. It was in line with other industrialised countries.

[Angie Bray]

rose—

[Jim Fitzpatrick]

I give way to the hon. Lady—the debate has certainly livened up, Mr Gray.

[Angie Bray]

The facts show that from 2002 onwards, Labour Chancellors were £30 billion short of what they were spending. Whatever they were spending money on, they were spending too much. From 2002, we were running a £30 billion deficit year on year. That is how we got to the level of debt that we now have, regardless of the breakdown of the banks.

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[Jim Fitzpatrick]

The Minister is teasing me. She knows full well that we just lost a general election on a policy of an additional runway at Heathrow and that my new leader—who, as the hon. Member for Cheltenham (Martin Horwood) mentioned earlier, had a particular view when Secretary of State at the Department of Energy and Climate Change—has announced that we are reviewing all our transport policy. I do not accept, by the way, that the methodology was flawed, although I accept that it has been upgraded and improved—“flawed” suggests that there was some skulduggery somewhere, which I do not buy in any way, shape or form.

The last question on aviation hubs is whether the Minister is worried that Brussels might be happy for Heathrow to lose its international hub role in favour of other parts of Europe.

[Angie Bray]

On the issue of six runways in Dubai, does the hon. Gentleman accept that Heathrow has no chance on earth of having six runways because of its geography? The problem with setting up Heathrow as a hub that can permanently compete with other cities that have their airports where they can continue to expand them—to four, five or six runways—is that we can never do that. We are utterly constrained by the geography. The third runway was about as much as we could ever have got anyway, and then only by jamming it in. To continue to compete in that way, therefore, is just throwing good money after bad.

[Jim Fitzpatrick]

I hear the hon. Lady’s comments and, as I said to the Minister, the electorate have expressed a view—certainly in west London—on additional capacity at Heathrow. I understand that the Department will be instigating a review of south-east capacity running to 2015, which seems a long time scale, and that the aviation policy will be written in a few months’ time. With the greatest of respect to the hon. Lady and to some of her colleagues who are new members of the Transport Committee, a hub airport is a critical piece of infrastructure for any country. Heathrow is running at 98.5% capacity—we will not have a hub if it is not Heathrow.

A strong point of view is that we should not have a hub and that we should deter and discourage people from travelling by air. The problem is that the impact on the UK economy, as a result of what aviation brings to UK plc, will be harmful. That is my personal point of view, but colleagues may want to consider the views of the CBI, the London and UK chambers of commerce, London First and the business community about the impact and role of Heathrow and whether capacity is needed.

[Angie Bray]

Nothing can change the geography. No one can change the geography of the area—one cannot get six runways in there.

[Jim Fitzpatrick]

I apologise. The hon. Lady mentioned six runways, and she is absolutely right—the third runway was about it. I only mentioned six runways to demonstrate that other countries are investing heavily in aviation infrastructure. A 25% increase is expected in China and south-east Asia over the next 10 years. People will fly—they will fly to the Americas from India, China and Australia, but, if they use Dubai as the stopping point for that part of the world, it will become increasingly difficult to get them to come to northern Europe. If we get them to come to northern Europe, they will not come to Heathrow if it is not functioning as effectively as we all want it to—again, that is an impact on UK plc. However, on the six runways, the hon. Lady is absolutely right, forgive me—I mentioned them only because I had been to see Dubai’s Aviation Minister, and had seen the runways and how amazing that was.

My last point on aviation is that I agree with the concern expressed by my hon. Friend the Member for Liverpool, Riverside, the Chairman of the Select Committee, about the future of TRANSEC and the impact of the CSR on security at airports and ports. More information is needed. I hope that the Minister will be able to comment, but obviously I understand the sensitivity around security issues. Perhaps she can comment, however, on the loss of expertise from TRANSEC as a result of impending retirements—early retirements due to potential redundancies—and, indeed, of redundancies. TRANSEC is an important organisation, and none of us want to see it damaged. It plays too important a role in our national security.

I will refer briefly to some comments of colleagues and reinforce points to which the Minister might wish to respond. The hon. Member for Milton Keynes South (Iain Stewart) raised the issue of high-speed rail. He got close to being drawn into aviation policy by his hon. Friend the Member for Cheltenham, but managed to stay away from it. I am sure his time on the Transport Committee will allow him the opportunity to examine closely the whole aviation issue.

My hon. Friend the Member for Worsley and Eccles South (Barbara Keeley) asked a number of questions of importance to her constituents and about the value-for-money issue. I look forward to the Minister’s response, especially as my hon. Friend was saying that the Highways Agency described the scheme she was concerned about as cheap and cheerful and not managed as we expect our modern motorways to function—without overhead signs controlling flows and changes to bridges. I understand that the scheme was referred back to the Highways Agency, but it has now been decided to plug ahead. As my hon. Friend the Member for Worsley and Eccles South strongly said, it is regarded as a waste of money. Indeed, she offered it to the hon. Member for Thurrock (Jackie Doyle-Price). I am not sure whether that generosity of spirit is normal between opposing parties, but I see that the point was well taken.

Among other matters, the hon. Member for Cleethorpes (Martin Vickers) raised questions on the role of ports and shipping. I agree with him that that sector’s profile does not match its economic significance. As a former Minister with responsibility for shipping, I look forward to hearing more from him in the years ahead.

The hon. Member for Pudsey (Stuart Andrew) cast an envious eye at Manchester and Sheffield; he asked for only two stations at Leeds. As it is the hon. Gentleman’s birthday, I would be interested to see how that request tests the Minister’s generosity.

The hon. Member for Cheltenham said that business accepted the need for restrictions on aviation. As I said earlier, I am not sure that I agree, and I shall not go there again.

The hon. Member for Thurrock spoke about the junction between the M25 and the A13. I am fairly familiar with it, as I lived in Barking for 20 years before moving to Poplar, Limehouse and Tower Hamlets. I know, as the hon. Lady does, that the new ports being built will add to the volume of traffic. Improvements to the junction were being considered by the previous Government in conjunction with the industry and the local authorities, because it is clearly a choke point. Something needs to be done.

As an aside, I believe that there are some 23 crossings on the Thames to the west of Tower bridge and only three to the east. With the regeneration of docklands, at least half of London’s population will be living east of Tower bridge, and there will be much more development on our side of the capital in the years ahead. I look forward to the Mayor of London revisiting the question of an additional crossing, which might marginally help the hon. Member for Thurrock. When the Mayor—Boris Johnson or his successor—comes forward with a proposal, as I am sure he will, I hope that the Department for Transport will support and encourage it. It will obviously be a financial risk for London, not the Department, but DFT support will be critical in ensuring that the project moves forward positively.

The hon. Member for Ealing Central and Acton raised a hugely important question on London’s transport, as did several colleagues, saying that if London does not function efficiently the whole of UK plc will suffer. Although some cast an envious eye on London and the support that the capital city gets, if London does not function the whole country suffers. I know that all parties in London are supportive of the hon. Lady’s comments.

The comprehensive spending review settlement is far from the huge triumph being spun by Ministers. It will see investment in our transport infrastructure being reduced far faster and more brutally than would have been the case under Labour. Not only will passengers be paying more for less, but they will feel the real burden of the cuts. The reality is that the Government are investing in rail schemes that they inherited from the previous Government, but with delays. Although passengers will see the benefit, the cost will fall on commuters through hikes in fares.

The Government have covered up a massive cut in funding for local government, disguising it as a commitment to localism, local decision-making and simplification, but the reality is that they are leaving the pain of making the inevitable cuts to local authorities and letting them take the blame. The comprehensive spending review settlement for transport is bad news for passengers, particularly commuters, bad news for safety on our roads, bad news for those who rely on buses to get to work or to find work and, most of all, bad news for business, competitiveness, jobs and growth.

Oral Answers to Questions

Baroness Bray of Coln Excerpts

Thursday 17th June 2010 Commons Chamber

[Mr Hammond]

As the right hon. Gentleman knows, both parties in the coalition campaigned before the general election on a clear commitment to scrap the third runway at Heathrow. However, we are not anti-aviation and, earlier this week, I set up a working group to consider aviation in the south-east and to work with all the stakeholders, including representatives of business, the airlines and people who work at the airport to ascertain how we can make aviation in the south-east work better within the constraints of existing runway capacity.

[Angie Bray (Ealing Central and Acton) (Con)]

The people of Ealing Central and Acton were delighted by the decision to scrap the third runway. Does my right hon. Friend agree that if the third runway had gone ahead, it would have imposed intolerable extra blight on those who live in west London?

[Mr Hammond]

My hon. Friend is absolutely right. When considering airport expansion, we must look at not only the economic benefits but the local environmental burdens and the impact on this Government’s and the previous Government’s commitments to CO₂ reduction.