Lord Grayling
Main Page: Lord Grayling (Conservative - Life peer)Department Debates - View all Lord Grayling's debates with the Department for Transport
(6 years, 8 months ago)
Commons ChamberMay I start by making the House aware of the fact that, as you are aware, Mr Speaker, the Under-Secretary of State for Transport, my hon. Friend the Member for Hereford and South Herefordshire (Jesse Norman), is unfortunately not with us this morning, because he has been invited to appear before a Select Committee. I am sure you will share my slight disappointment that any Committee would call a Minister when he is supposed to be giving oral answers to the House, but that is his reason for not being here.
The two things we are doing to improve north-south rail connections in the UK are, first, building High Speed 2—the first new north-south railway in this country for over a century, which will have a transformational effect on people in the midlands, the north of England and Scotland. We will also shortly see the arrival of the new fleet of inter-city express trains, which will operate on the east coast main line, enabling additional and faster services between key locations on the route. Of course, those trains will run right up the east coast to Scotland.
I thank my right hon. Friend for that. While acknowledging that rail funding will increase from £3 billion to £3.6 billion in the next spending period, may I ask what consideration has been given to improved road connections between Scotland and England, especially along the east coast?
The east coast is the key priority in road-building terms. We are very close to opening what will, extraordinarily, be the last bit of motorway linking London and Newcastle; it is long, long overdue, and I am amazed it has not happened already. We are then pressing ahead with dualling the A1 north of Newcastle, and my goal is to take that up to the border, but it will be for the SNP and the Scottish Government to make sure that something is there to meet us coming the other way.
The Minister might know that I have probably done more miles on the east coast line than any other Member of this House. May I tell him, with that experience, that it is chaos again on the east coast? Stagecoach is being let off the obligation to pay the full money it should be paying to the British Exchequer. Yet again, the east coast line is in a mess, and he is doing nothing about it.
I am very glad that the hon. Gentleman has already recovered from his obvious misery at Arsenal’s demolition of his team by five goals to nil last night.
A tiny bit below the belt, I think, Mr Speaker, but the hon. Gentleman seems to have weathered the storm pretty well.
The hon. Gentleman will be aware that, notwithstanding issues on the east coast main line, passenger satisfaction on that route has actually improved rather than reduced; indeed, the money flowing to the taxpayer has increased rather than reduced, so he is slightly misjudging the current position.
The Secretary of State knows how important the east coast main line is to Newark and my constituents. In recent years, Network Rail’s performance has been poor, and the track does need considerable investment. That is the principal reason why delays have increased on the east coast main line. Will the new public-private partnership see more investment and improvements on the track?
I can give my hon. Friend that assurance. In fact, we have a substantial investment programme lined up for the east coast main line, upgrading power supplies and improving the tracks, and that will certainly be steered by the new partnership.
We have been ensuring simply that we phase projects to cause the minimum possible disruption to users of the roads, while making sure the rolling programme goes forward. I am very proud of the fact that, as a Conservative Government, we are the ones transforming the A1—a project that is long, long overdue.
To go back to rail funding, the Secretary of State is well aware that there is a £600 million gap in the allocation of funding to Scotland for the next investment period. Previously, rail funding to Scotland was based on its percentage of the network—that funding formula was developed in 2005—so will he explain why, if he thinks north-south rail links are a priority, he is quite happy for there to be a cut in rail funding on his watch?
As I keep saying to the hon. Gentleman, I am very happy that funding is allocated to Scotland on the basis of the Barnett formula. I thought that was the way things worked.
Let me explain to the Secretary of State that the previous rail funding was based on need and on Scotland’s percentage of the rail network. Helpfully, the other day the Secretary of State for Business, Energy and Industrial Strategy acknowledged that the allocation of funding to Scotland for infrastructure should be based on need and geography, and it should be the same for rail. In answer to a question tabled in October, the Secretary of State for Transport said he has “various discussions” with the Secretary of State in Scotland only “from time to time”. Is it not time that he prioritised this issue, and will he agree to meet me and the Transport Secretary for Scotland to discuss the budget and north-south linkages?
If the hon. Gentleman wants to meet the Government to discuss the removal of the Barnett formula and the move towards needs-based allocation of funding across the piece for Scotland, I am sure that would be a very interesting discussion; but in this country over the past few years we have tended to follow the Barnett formula. Most recently, we have provided additional funding to Scotland through the allocations in the Budget. Money has been spent on capital investment in England and money is to be spent based on the Barnett formula in Scotland. That is the way we operate.
We learned yesterday that the east coast rail franchise will be terminated in 2020—three years early—potentially forfeiting billions of pounds in premiums due to the Treasury, yet the Secretary of State told the House that Stagecoach will meet in full the commitments it made to the Government as part of this contract. So, can he confirm that the full £3.3 billion due from Stagecoach-Virgin will be paid to the Treasury, in accordance with the terms of the original contract?
Every time a franchisee takes up a new contract it makes a parent company commitment to the Government. That commitment will be kept in full.
Can we get to the heart of this? Will the premiums of some £2 billion due under that contract covering the years 2020 to 2023 be paid? Will they be paid—yes or no?
Self-evidently, given my announcement yesterday that we would have the east coast partnership in place in 2020, there will be new arrangements in place in 2020. As I have said to the hon. Gentleman, every franchisee makes a parent company commitment before taking out the contract and we will hold that that commitment will be met in full.
We recognise the importance of using infrastructure projects to support regional growth, which is why we are increasing Government infrastructure investment by 50% over the next four years. Such investment decisions are based on a fair and rigorous process that is designed to ensure that spending goes where it is most needed.
Will the Secretary of State put some power—some oomph—into the northern powerhouse, and pledge to get funding for passenger trains and platforms on to the existing Mid Cheshire rail link?
As somebody who used to live very close to the Mid Cheshire rail link—indeed, I used to go walking alongside it—I am well aware of its potential. I have asked Transport for the North, which is taking the lead on making recommendations about new projects, to do work on this for me, but I should say to the hon. Gentleman that I am extremely sympathetic to the idea of trains running again on that railway line.
Between 2011 and 2016, the average spending per head of the population on transport infrastructure in London was £725, but the similar figure for the north-east was £286. The investment in Tyne and Wear Metro, which is due in three or four years’ time, is very welcome, but we have a very long historical legacy of under-investment. Will the new formula do something about that historical legacy of under-investment?
To be honest, I am less concerned with formulae than with actually doing things. I am delighted that we are renewing the Metro trains, and I said yesterday that I am very keen to pursue the Blyth to Ashington extension to the Metro line. I am very keen to ensure that we continue to develop the road network in the north-east, which is why the opening of the first complete motorway link from London to Newcastle is so important, why we need to keep on improving the A1 north of Newcastle and why dualling the A66 is so important. This is about doing things, and that is what is actually happening right now.
Does the Secretary of State agree that doubling the line from Ely to Soham, as part of the Ely area improvement works, will bring significant benefits to the eastern region?
Absolutely. I regard this, along with the trans-Pennine upgrade, as one of the key priorities for the next railway investment control period. The Ely junction project will unlock freight and passenger capacity in a really important part of the country. Along with the investments we are putting in place elsewhere, it is a very important part of our strategy.
I thank the Secretary of State for his support in securing £79 million of funding for a new link road from St Austell to the A30 in my constituency, as confirmed in the Budget last week. Does he agree that this and other schemes, such as dualling the A30 and the new trains that are soon to arrive in Cornwall, clearly demonstrate this Government’s commitment to investing in transport infrastructure across the whole country?
I am grateful to my hon. Friend for his comments, and I am very pleased that we have got the go-ahead to deliver that road improvement for the people of Cornwall. It is really important for the regions of this country—whether the north-east or the south-west—and particularly areas that need to be given more infrastructure support so that their economies develop, to get the kind of investments that they are now getting, and we are very committed to going forward with that in the future.
Bus fares are something over which my Department has less control, particularly with the new franchising arrangements that are coming into place, but I will most certainly make sure that the Under-Secretary of State for Transport who is responsible for buses, my hon. Friend the Member for Hereford and South Herefordshire (Jesse Norman), is aware of the hon. Lady’s concerns and that we respond to her.
The Government are committed to ensuring that our continued levels of record investment best address the needs of passengers and freight. Passengers expect high-quality rail services, and we are committed to electrification where it delivers genuine benefits to passengers and value for money for the taxpayer.
No rail system can be called high speed unless it is electric. After blocking Hull’s privately financed rail electrification scheme a year ago, yesterday, the Transport Secretary told the House—I am sure he will recall this—that the Liverpool to Hull Crossrail for the north would happen in parallel with the Surrey to Hertfordshire Crossrail 2. Will both lines be electrified, just as Crossrail 1 is electric?
At a time when we are seeing technology move very fast, people have to get away from a set focus on an individual form of motor power. Not every 125 mph train has to be powered by a particular power source. In the coming years we will see more development of bi-mode technology, battery technology and hydrogen technology. We will use the systems that make the most difference to the passenger the most cost-effectively.
Despite the creaking electrification infrastructure on the east coast, the 43-page “Connecting People” was jammed with funding reannouncements, possible reopenings, readjusted delivery dates, delayed promises and a lot of words to try to hide what we all now know was the central purpose—to conceal the deal on the failed Stagecoach franchise.
The new partnership that passengers want is their trains to arrive on time, so when will we see the upgrade to the electrification works needed on the east coast?
As I said earlier, the key point is that the next investment control period contains a programme of continued upgrade and investment for the east coast main line, to go along with the arrival of a new generation of smart, new, effective, passenger-friendly trains. All of that will happen so that we deliver those improvements and passenger services. Having heard the shadow Secretary of State’s questions earlier, I think that he has not understood that this will be a completely fresh partnership with potentially new partners and a new way forward, delivering better services for passengers in a more joined up way.
More structural changes, but the electrification wait continues. Let us look at these new rail partnerships. They are moving a public service to the control of private companies. This is not devolution to the rail authorities or to the people, it is devolution to the shareholders; it is further fragmentation and privatisation of the railway, failed operators now being handed the tracks as well as the trains, and nothing to address the electrification upgrade.
Is it to recoup these costs that the ticket prices will be soaring by 32% since 2010 after Christmas?
Two points: Labour Members should remember how much fares rose when they were in power; and they might like to explain why their friends in the unions have in their training manuals a requirement for negotiation for RPI increases in the future. Why is that? Why do they not tell their union friends to change their ways of operation?
My hon. Friend knows well the interest I have taken in this project. Highways England is currently conducting a final review of the route options for the A417 missing link. It is on track to launch a public consultation early in the new year.
My right hon. Friend knows that the south-west is a low-growth area. This is a highly important strategic national road scheme linking the south-west with the midlands and the Thames corridor. Does he agree that we need to get on and build this scheme as soon as possible?
It is not just about that; we also know that this is a highly dangerous piece of road, where, tragically, there has been a further accident with loss of life in the past few weeks. So it is not just about creating the right economic links; it is also about creating a safer road network. For both those reasons I have been very clear with Highways England that I want to get on with this project.
In the case of the Minister for Transport Legislation and Maritime, my right hon. Friend the Member for South Holland and The Deepings (Mr Hayes), I am sure that we have not had too much of a good thing, Mr Speaker. You will be delighted to know that it is not only the House that has heard extensively from him this week but 175 Ministers from around the world. We have been hosting the biennial meeting of the International Maritime Organisation general assembly in London. The IMO is the specialist United Nations organisation responsible for measures to improve the safety and security of international shipping and to prevent pollution from ships. We host the IMO here in London. I want to thank everyone who has been involved in organising that event and to extend a warm welcome on behalf of the United Kingdom Government to all the Ministers and other delegates who have attended the convention this week.
I am sure that all those Ministers from around the world feel both informed and improved as a result of their interaction with the Minister for Transport Legislation and Maritime, the right hon. Member for South Holland and The Deepings.
I warmly welcome last week’s announcement of an £8 million road safety fund for the areas of Warwickshire affected by HS2. Does the Secretary of State agree that the Trinity Road-Overwoods Road junction in my constituency, which has seen numerous fatalities and serious accidents, would be an excellent candidate for some of that funding, given that the proposed solution is now unlikely to go ahead owing to the development of HS2?
I am glad that the Under-Secretary of State for Transport, my hon. Friend the Member for Blackpool North and Cleveleys (Paul Maynard), who is responsible for HS2, was able to visit that junction last week with my hon. Friend the Member for North Warwickshire (Craig Tracey). I am also pleased that Warwickshire County Council has been such a beneficiary of the available funding. While it will be for the council to decide what schemes to support, I hope that it will focus on where it can make the biggest difference to safety.
This Government are presiding over a sustained fall in the number of bus journeys taken. Just this week, Kent County Council outlined plans to axe more than 70 bus routes in a bid to save £4 million. Does the Secretary of State accept that bus passenger numbers will continue to fall until his Government halt the cuts to local authorities?
We want bus passenger numbers to rise, and the measures in the Bus Services Act 2017, which passed through the House a few months ago, will provide an environment in which bus ridership can recover and improve and will lead to more and better services around the country.
I will happily do that. Staffing issues are always disappointing, but the other area of challenge on the Southern network has been the condition of the infrastructure. We will in the coming months be taking some major steps with some major projects to start to improve the quality of that infrastructure, including spending the £300 million we have already committed, with more to follow in the next control period.
Crossrail is of course a massive investment in transport in London. It is not a TfL project; it is a joint project between my Department and TfL that is designed to improve the lot of passengers both inside and outside London. It will make a real difference to the south-east.
I understand why this is such a serious issue, and I would be delighted to extend an invitation to the hon. Lady to come to the Department to meet Ministers and officials to talk about what is clearly an important matter.
We are now conducting the kind of review of the financing of Crossrail 2 that we conducted on Crossrail 1—the Montague report. I am keen to see the project progress in lock step and parallel with northern powerhouse rail, and I make it clear that they are both important projects. I also make it clear that the London contribution cannot be an IOU paid for by the Government. We have to make sure that we have a robust, absolutely reliable funding package so this project can go ahead in good shape.
I am obviously well aware of that issue. It is worth remembering that we have just allocated £175 million to Leeds, which will be spent on a variety of projects around the city, but I am also aware that funding needs to flow to West Yorkshire. I will personally make sure that, as we allocate the funding, West Yorkshire is not left out.
Will the Secretary of State welcome the fourth season of the Formula E series? The series starts in Hong Kong this Sunday and will be broadcast on Channel 5, and it aims to advance electric vehicle technology. With races taking place in 11 cities such as Paris and New York, will he look at attracting future races to the UK to complement our rapidly increasing electric vehicle technology?
My right hon. Friend is absolutely right. Motor racing is a great success story for this country, and it is an important part of our economy. People often do not understand the importance of the industry, which is particularly centred on Silverstone in Northamptonshire, where many of the leading teams are based. The technologies that come from small businesses and suppliers change the automotive world, not just in motor racing but across the piece. I am delighted to see the success of Formula E, and I would like to see more Formula E and more development of technologies for it in the UK. I am happy to extend the Government’s support to the motor racing industry.
Will the Secretary of State keep in mind the other northern powerhouse, Aberdeen, and the economic importance of its airport, including in servicing the oil and gas industry?
My hon. Friend and I had a productive visit to Aberdeen airport recently, and I absolutely understand its importance to the whole economy of the north-east of Scotland and indeed to the United Kingdom, because Aberdeen is central to one of our key industries. I have made it clear that as we expand Heathrow airport, we will make sure that capacity is set aside for regional links to airports in Scotland and elsewhere, so that every part of the UK benefits from the expansion of that airport.
TfL has clearly demonstrated its ability to run efficient services and improve them in London, so will the Secretary of State enter into negotiations with the Mayor of London about south eastern suburban services before my constituents are forced to endure yet another bungled privatisation?
The first thing to remind the hon. Gentleman of is that London Overground is also a franchise—Labour always conveniently forgets that. It is run by Arriva. The other thing to say is that the document we published yesterday on the new south eastern franchise involves far greater additional benefits for passengers than was ever the case in the Mayor’s business plan for that franchise. The last point to make is that I have extended to TfL and the Mayor the same offer that I made and is now in force in the north for a partnership in operating, designing and managing the franchise, but that offer is yet to be accepted.
Cheshire East has the highest gross value added in the north. My constituents are extremely grateful for the Middlewich bypass funding, which is key to continuing this economic growth and delivering even more, as is the need to improve junction 17 of the M6 nearby. Will Ministers kindly give consideration to including that as part of the north’s emerging strategic transport plan?
I absolutely hear what my hon. Friend says. As someone who used to live close to that area, I understand the issues she raised, and I am sure Transport for the North will listen to her comments today. It is finalising its plans. As Cheshire and mid-Cheshire grow—the towns there have expanded considerably in recent years—there is a need to make sure that the infrastructure is fit for purpose, which is why my earlier comments about the mid-Cheshire line are also important.
I welcome the public funding for the Tyne and Wear Metro announced in the Budget, which will come through the northern powerhouse. But if the northern powerhouse is to be anything more than a marketing gimmick, such funding must be part of an overall commitment to redress the dire imbalance in transport funding between the north and the south of England. Will the Secretary of State make that commitment here and now?
I keep saying that we are actually doing things right across the north: what we are doing on the Tyne and Wear Metro; the improvements to the A1; the completion of that last motorway link; the works taking place on the M1, M6 and M62; and the A66 widening. There are projects happening all across the north. We have brand new trains arriving on the east coast main line, the upgrade of that line that lies ahead and northern powerhouse rail in the future. This Government are delivering better transport for the north of England.
Following the announcement by the Secretary of State yesterday that he will explore opportunities to restore capacity lost under the Beeching reforms in the 1960s, will he commit to looking into the possibility of reopening Aldridge station and perhaps coming to visit me in Aldridge to examine the benefits that could bring?
Does the Secretary of State feel any guilt about the fact that many of my constituents and many people in this country thought during the referendum campaign that people like him were promising that more money would be spent on transport infrastructure and the NHS because we would save so much money from leaving the EU? Yesterday’s announcement of a £50 billion debt that we have to pay to the EU was a shocking revelation. What is he going to do about it?
First, we made no announcement yesterday about money for the EU. Secondly, we are spending more money on transport infrastructure.
Montrose port is vital to Angus’s local economy, and good transport links to and from the port are essential for it to flourish further. Will the Secretary of State tell me what communications he has had with Network Rail since his visit to Montrose, regarding progress on negotiations to open a direct link to Montrose port?
Further to my earlier question to the Secretary of State about Crossrail for the north, will he confirm that Crossrail 2 will not be wholly electrified?
We have finished the design of neither Crossrail 2 nor northern powerhouse rail. My focus right now is on the projects that are under way, including electrification across parts of the north of England and a £3 billion upgrade to the trans-Pennine routes. We are already seeing better investment in the north. When we see the final shape of Crossrail 2 and northern powerhouse rail, we will see what the answer to the hon. Lady’s question is.