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 ChamberWe do not allocate transport funding on a per head of population basis; our decisions are based on a rigorous and fair appraisal process that ensures that spending goes where it is most needed and where it delivers the greatest value for money. Recent analysis by the Infrastructure and Projects Authority shows that planned central Government transport investment over the next four years is evenly balanced, with £1,039 per head of population in the north, compared with £1,029 in the south.
May I first take this opportunity to thank all those involved in keeping our transport systems going in this inclement weather? I am sure that fellow Yorkshire MPs will have shared my surprise at the Secretary of State’s recent article in The Yorkshire Post, in which he claimed that spending in the north was somehow greater than that in the south—if, through a rather imaginative calculation, we ignore London. Does he agree that simply spinning figures will not fix our archaic northern railway systems or get northern commuters to work on time?
I echo the hon. Lady’s comments about those who are working hard to keep the transport system open today; we are very grateful to them all. In a week when the Labour party has already had issues with its use of statistics, she should look up the official statistics from the independent Infrastructure and Projects Authority, which show that planned central Government spending is higher in the north than it is in the south.
I am sure that we could spend more Government money on transport in the east midlands, particularly in Northamptonshire, and especially in Kettering. The new franchise for the midland main line is currently being negotiated. Will the Secretary of State ensure that Kettering’s rail services are better after the franchise is awarded than they are now?
My hon. Friend, who is a strong champion of Kettering, will be delighted to know that the expansion in capacity to Corby means that there will be a much better commuter service in the mornings and evenings through Corby down to Kettering, and to Wellingborough and beyond. That is one of the benefits of the biggest investment in the midland main line since the 1870s.
Just to give the Secretary of State an example of unequal treatment, is it true that for the new east midlands rail franchise in 2020 the current HST—high-speed trains—carriages will be scrapped, because they are disability non-compliant, and the power cars will then be matched with second-hand, cast-off carriages from the east coast main line? Instead of the brand new, hybrid hydrogen trains that we were promised, we will be getting hybrid trains composed of 30-year-old power cars and 30-year-old discarded carriages from another line.
I do not know what stories the Labour party has been listening to. The midland main line will have brand new, bi-mode trains delivered as soon as possible—
In the early 2020s, which is years ahead of what would otherwise have been the case under the original scheme.
Within the context of equity of spending, I wonder whether, after this snow event is over, my right hon. Friend will ask some serious questions about, or even have a review of, why we still seem to be in no way prepared for such events. For example, I discovered yesterday that Heathrow is busy offloading flights because it cannot cope, whereas—[Interruption.]
Yes, regional flights. What I am saying is that, given all of that, airports such as Gatwick and others are able to cope. Does my right hon. Friend not think that it is ridiculous that some airports are simply unable to cope while others across the UK can?
I know that a number of Members are here today because their flights to regional airports have not been able to take off. I hope and expect that we will be able to sort that out as quickly as possible today, although it is really important that the transport system is run safely. Of course, one of the benefits of the expansion of Heathrow is that the airport would become more resilient to such difficult situations, and connections to regional airports would be more reliable.
I, too, pay tribute to those transport workers who are keeping the system going at this difficult time. The Secretary of State said in his first answer that the allocation of funding is a rigorous and fair process, so can he explain why the Government have ignored the Office of Rail Regulation’s recommendations by underfunding Scotland by £600 million? Since then his Department has been able to cope with a £240 million loss of revenue as a result of the situation with Southern rail and found £245 million for High Speed 2. The Government have been ignoring the Scottish Government since last July, so will they now meet the Scottish Government, or are these just weasel words about equity of funding?
Once again, the Scottish National party is arguing against the use of the Barnett formula. SNP Members love the Barnett formula when they think it is advantageous to them, but when they do not like the Barnett formula, they want to get rid of it. I simply say to them that this Government have followed the principles of the Barnett formula, and actually the Treasury has given Scotland a bit more money above that. I wish the SNP would stop complaining. The reality is that Scotland is now better represented, with a group of Conservative MPs who are much more effective than the SNP ever was in getting this Government to do that bit extra for Scotland.
I am not sure I see any merit in the early termination of the Virgin Trains East Coast franchise. That is not something I would wish to happen, but we have to deal with the world as it is, rather than as how we would like it to be.
My priority is to ensure the continued smooth running of the east coast franchise for its passengers and employees, and to make sure that the trains run and deliver the service that people need. As I told the House on 5 February 2018, a new arrangement to operate the railway prior to the new east coast partnership in 2020 needs to be put in place. We are currently conducting a full appraisal of the options, and I will return to the House in due course.
I am afraid to say that service standards have deteriorated on the east coast line since Virgin-Stagecoach took the franchise—I am a regular customer on that line—despite the best efforts of the excellent staff on board trains and at stations. Those staff face having their sixth employer in a decade and a half. Will the Secretary of State meet me and some of those staff, so that they can express their concerns about the way in which the franchise has been conducted? Will he give the House an undertaking that there is a genuine public sector operator ready to take over should that be required—or has Directly Operated Railways been outsourced already?
On the last point, I can give an absolute guarantee that that is the case; we have been making preparations for different eventualities for some time and there is a genuine alternative, if that is deemed to be best for the passenger and best value for the taxpayer. My ministerial colleagues and I are happy to talk to staff, but I would correct the hon. Gentleman on one point: the reality is that the independent assessments have shown a higher level of passenger satisfaction on that route since the change of franchise, not a lower one.
I, too, wish to say a huge thank you to the staff who have been involved in keeping the trains running. As has been said, the current Virgin Trains east coast line franchise agreement will end three years early, making it the third franchise failure in about a decade. As someone who uses the line, I do not agree with the Secretary of State’s assessment of it. But will he recognise that there is a problem and see this as the perfect opportunity to bring the contracts back in house?
As I have said in this House before, I need to do what is best for passengers and for the taxpayer. The reality is that since the transition, regardless of the fact that Stagecoach clearly got its numbers wrong, passenger satisfaction has risen, more people are being employed by this railway and it is delivering more money to the taxpayer. [Interruption.] That is the reality. Labour Members can say it is not true, but it is; it is a fact that they just have to deal with.
I assure the Secretary of State that after three failed franchises and the experiences of a directly operated railway my constituents would much prefer a directly operated railway. Will he commit to providing a directly operated railway service, in the public interest?
As I have said, I am going to do what is best for the passenger and for the taxpayer. I am sorry that the Labour party does not seem to get this, but the reality is that passenger satisfaction levels are higher today than they were three years ago—that is what the independent research shows. Labour Members may not like it, but it is true.
Next year, Bradford would have seen a marked increase in the number of much-needed direct inter-city trains serving the city, but the chaos with the east coast line has put that in serious doubt. These extra trains are vital to improving Bradford’s connection to the rest of the country, so will the Minister commit to ensuring that, whatever happens to the east coast franchise, Bradford will see an increase in the number of direct trains?
This is an important point, so let us be clear: it is my intention that, whatever arrangements are put in place for the next few years, the service improvements that have been promised will be delivered. We face an issue on infrastructure and additional capacities on the northern part of the route, which will have to be resolved and may mean some amendments to the timetable for new services, but that will not stop us delivering those new services. In Bradford’s case, I am expecting to be able to fulfil the commitments that were made.
I agree with my right hon. Friend that there are no merits in the early termination of the franchise, but there are opportunities from the new partnership. My constituency has 10 railway stations, none of which have a direct rail service to London. Does he agree that this is an opportunity to look at providing services to those towns not currently served?
As I know, my hon. Friend has been a regular advocate for direct services, and I would like to see those happen. I am looking to see whether we can maximise the capacity on the east coast main line to make additional services possible. Of course the arrival of HS2 will allow many services that cannot be run now because of capacity constraints to happen, because of the additional capacity it will create on routes to the north and Scotland.
I am absolutely going to. In respect of the proposed alternatives to the current east coast franchise, has the Secretary of State seen President Macron’s recent remarks about the nationalised French railways, and has he any remarks to make on them?
Wisdom sometimes comes from our allies across the channel. I did see those remarks, and they are a timely reminder that a nationalised railway is not the panacea that some believe it is.
It was not the Horsham perspective, but the international perspective. Why would I expect anything less from someone so illustrious as a man who served as my constituency chairman for three years, for which he deserved a medal?
The Secretary of State says that Stagecoach got its sums wrong, but clearly his Department got its sums wrong, too, when it awarded the franchise to Stagecoach. Surely one merit of this situation should be that failing franchise holders should not be allowed to bid for future franchises. Does the Secretary of State agree that this gives us the opportunity to put the franchise into the public sector, allow further public sector involvement across all franchises, and review and improve the franchise tender process?
We certainly keep the franchise process under continual review to work to improve it but, as I said a moment ago, a public railway is not the panacea that everyone on the Opposition Benches claims it is. I intend to do two things: to take the right decisions for the taxpayer and the travelling public on that route, which is really important, and to act within the law, which is also important.
On Monday, the chief executive of Stagecoach said that he knew there was a problem with the east coast franchise’s finances just weeks after taking over the contract in March 2015, and that he had been talking to the Department about it for two years. Given that the Department was in dialogue with the operator about the difficulties, why did the Secretary of State not put together a contingency plan for the route? The Secretary of State has had two years to sort out this mess; is it not simply incredible that he still does not know what to do?
The shadow Secretary of State clearly cannot do his sums, because I have not been Secretary of State for two years. We have been planning—
I have been Secretary of State for 18 months; the shadow Secretary of State cannot do his sums. Since I became aware that there was a problem on the east coast route, we have been doing careful contingency planning, so we have a long-term plan and short-term options for the route. We cannot put those short-term options into place until the appropriate moment arises at which they are necessary. We are prepared for when that moment arises and will deliver the alternatives.
Given that the taxpayer has already lost out on more than £2 billion of premium payments, can the Secretary of State advise the House as to whether the financial ramifications of the termination of the franchise are now completely known and concluded? If not, what sums of money are earmarked to settle any further system-gaming demands from Messrs Branson and Souter through litigation or arbitration?
Again, the Labour party cannot do its sums. We have no more written off £2 billion than Labour wrote off £1.4 billion when National Express collapsed. The reality is that the east coast is and always has been in recent times a profitable railway. Whatever happens, it will continue to generate a substantial return for the taxpayer. It is about time that Labour did its sums properly, rather than misrepresenting the reality.
As my right hon. Friend knows, I have asked Highways England to progress plans to promote a lorry holding area through the normal planning process as a potential permanent solution to Operation Stack. Highways England intends to undertake an initial public consultation on this in the spring, which will consider the scope, scale and function of the lorry area. As he knows, I am frustrated that we have not been able to do this sooner, but the commitment to it is strong.
The Secretary of State is, I know, aware of the extreme urgency of finding a solution to this matter. Even if we assume a full implementation period after Brexit, we could be less than two years away from new customs arrangements at Dover, and problems there could be disastrous not just for roads across Kent, but for the national road haulage industry. Can he assure us that, by the time of Brexit, sufficient off-road parking spaces will be available to avoid a recurrence of Operation Stack?
There are two points that I should make. First, on the border, it is absolutely the intent of this Government to maintain a free-flowing border; that is of paramount importance. The other point, be absolutely clear, is that we will have a solution in place for next March which keeps the M20 flowing in both directions and provides a solution if there is congestion at the ports; and that we intend to move beyond that and deliver a long-term solution, which will not only deal with the issue of trouble at the ports, but provide some respite to Kent residents, who I know are fed up with having lorries simply parking on their local roads.
Eighty per cent. of the road freight to and from the UK goes through Dover. There is surely no realistic chance of all those lorries being checked from March next year. Is not the reality that, if we leave the EU without a deal, utter chaos on the road network within miles of Dover is completely unavoidable?
No, I do not think that at all. It is for this country to decide how we manage our borders and what checks we put in place. The Government are absolutely committed to ensuring that there is a free-flowing border at Dover, and we will deliver that.
Is it the Department’s policy that a new fixed link across the channel would help to ease disruption?
We should have some big, bold visions for the future. That is the way that we plan properly in transport terms. Our big, bold visions for the country right now are HS2, the potential expansion of Heathrow airport, the lower Thames crossing, the trans-Pennine tunnel, the A303 dualling and the Stonehenge tunnel. This Government have and are delivering lots of big visions for Britain.
The chairman of Maritime UK has said that, if a deal is not reached on Brexit, lorry drivers could be stuck on the main roads to Dover for up to two days. Even if a deal is reached, with a hard border at vital ferry ports, the industry is warning that customs and port health checks will cause massive disruptions. What concrete assurances can the Secretary of State give us that that will not be the case?
As I have said before, I have regular dialogue with the haulage industry and the ports sector. I have been very clear to them, as I am being clear in this House today and as the Prime Minister has made clear, that we do not intend to impose a fixed border. We want a free-flowing border and that is what we will deliver.
All franchise operators are required to obtain a pre-qualification passport. The Department may suspend or withdraw a passport in the event that the passport holder triggers certain requirements within the passport application. This would place restrictions on or remove the passport holder from bidding for franchise competitions.
I take it from that answer that it is possible for the Secretary of State to deny an existing franchise holder the right to rebid in a new tendering process. Govia, which has had the south eastern franchise for a long time, has consistently been a poor performer, so can he remove Govia from the service? If it were to get the franchise, what guarantees can he give to my constituents that they will get the improved service that they deserve?
In the case of the south eastern franchise, we will accept the bid that is going to deliver the best possible outcome for the hon. Gentleman’s constituents, with longer trains and better services. This is a competitive process. I will not hesitate to remove a passport from a firm when that is required. I also have to operate within European procurement law—something that the Labour party is still very keen on—and that requires me to take a proportionate approach. I will always seek to do that and I will always seek to operate within the law.
Last year, no fewer than 67 million rail journeys were cancelled or severely curtailed. I raised this matter with the Prime Minister yesterday. Most of the compensation paid by Network Rail was trousered by the train operating companies. When they bid to renew their franchises, will the way in which they have treated their passengers with compensation be a key consideration, as it should be?
My hon. Friend is absolutely right that we need to ensure that passengers get the compensation payments to which they are entitled. Of course, the compensation structure is much more complex and there are far more issues than those that have been highlighted in the media in recent days. I am very clear that the move that we are going through this year to provide digital ticketing across the whole network will make it much more straightforward to give passengers the compensation that they deserve and need, and enable them to do so simply, without having to fill out long, complicated forms.
The estimates report was very revealing, showing how hundreds of millions of pounds have been spent on compensation, underwriting failure and bail-outs. In control period 4 alone, a staggering £339.4 million of public money—our constituents’ money—was handed over to private operators, while passengers were forced to pay over the odds to travel. How much more public money will the Secretary of State pass to these failed rail operators?
The Opposition keep talking about the huge amounts that are paid, but they fail to understand that less than £3 in every £100 that is spent on the railways remains with the companies. The rest is going into the biggest infrastructure investment programme, better services and newer trains—the kind of improvements that people could only dream of in 13 years of Labour Government, but which they are getting under a Conservative Government.
That is certainly no apology to our constituents. The Secretary of State’s lack of due diligence has caused chief exec David Brown, of embattled Southern rail fame, to announce that he has done a—expletive deleted—good job, and that he will bid again for the next franchise contracts. Virgin and Stagecoach will do the same. These companies are on a huge gravy train at the expense of taxpayers, so why is the Secretary of State being held to ransom and why he is even prepared to consider rewarding their failure?
The hon. Lady talks about a privatised gravy train. I would encourage her to look at the conversation that the French Prime Minister had about a state railway, where he said:
“The dilapidated network, delays, abysmal debt…The situation is alarming, not to say untenable. The French, whether they take the train or not, pay more and more for a public service that works less and less well”.
I would say to her constituents that I am delighted that over the next 12 to 18 months the people of York are going to see every single train, pretty much, that serves their station replaced as new, or brand new trains—trains that they have not seen for decades.
During the franchise process, business cases get a lot of focus. The hon. Member for Middlesbrough (Andy McDonald) mentioned the Virgin Trains east coast contract and the franchise holder criticising some of the figures he had been passed. As a member of the Public Accounts Committee who was present at that hearing, I can say that the franchise holder actually said that, although the figures were not what he was expecting, they were not an insurmountable barrier to the franchise working. He quoted the Scottish referendum and Brexit, and a declining trend in passenger figures, as the real reason why the franchise failed. When franchises across the companies are being bid for, will my right hon. Friend encourage those companies to have a broader range of dynamic scenario planning so that they get accurate figures?
My hon. Friend makes a very important point. We are now migrating the franchise system to being much more focused on quality. The quality of service is going to drive revenues as much as anything else. People will see a very different approach where we do not necessarily take the highest bid, we look for high quality in the bids, and we look to be prudent about the risk-sharing mechanisms so that hopefully this does not happen again.
Briefly, let me inform the House that the Space Bill has completed its passage through Parliament, and I extend my thanks to all Members involved in the debate. That debate was conducted in good humour by Members from across the House, and we all share the aspiration for this Bill to pave the way for a thriving commercial space sector in the United Kingdom.
Is the Secretary of State aware that Network Rail and Govia Thameslink have committed to ensuring that eight-carriage trains are introduced between Cambridge and King’s Lynn by the end of the year, which is vital to relieving unacceptable levels of congestion? Will he help to ensure that that commitment is honoured?
I will certainly do that, and I also recommit to the improvements needed in Ely, which are essential over the next control period to unlocking those capacity improvements that are needed for the growth and development of those parts of Cambridgeshire.
Let me say very clearly and unequivocally that what took place last Sunday was unacceptable. On behalf of the Government, I apologise for it and the company has already done so. We have made our views known to the company in the strongest possible terms. It was unacceptable and lessons have to be learned. The company is putting in place arrangements to make sure people receive appropriate financial compensation. It must not happen again.
First, I want to put on the record again my commitment to making sure that Stoke is in receipt of an HS2 service when the route opens. The local authority’s plans for Stoke station are very exciting and I want to work on them with my hon. Friend and the local authority.
I know that these works have taken longer than intended. I have spoken to Highways England and we want to get this situation resolved as quickly as possible. It is certainly the case—I speak as somebody who travels from time to time to Old Trafford—that the area is surrounded by roadworks on the motorway and the work on the new extension to the Metrolink. I hope the hon. Gentleman will acknowledge, however, that this is a sign that the Government are making sure there is investment in, and resource provided to, Manchester, where transport investment on this scale has not happened for a long time.
My right hon. Friend will know from our many previous conversations that the people of Plymouth have waited too long to see improvements on their rail link, so I am grateful for his Department’s response yesterday, but when can they expect to see something delivered—some work completed—on Dawlish, which I know is his No. 1 responsibility?
Thank you so much, Mr Speaker. There is one set of tracks and one franchise operator between London and Brighton, but there are three separate pricing structures. I urge the Secretary of State and the Rail Minister to think about implementing the Gibb recommendation to lower the pricing to the lowest possible one—the Thameslink one—for a two-year period. That could be done with no technical changes whatever, and it would have a transformative impact on passengers who have suffered so much in the last few years.
We are working our way through the recommendations of the Gibb report, and we are working our way through the automation of ticketing, which I think is a prerequisite of the broader fares reform that is necessary. The hon. Gentleman will be aware that the keyGo card has just launched across the Govia Thameslink Railway network, and that smart ticketing is progressing. That will provide the opportunity for fares reform in a way that has not been there previously.
During the recent appalling weather, Worcestershire County Council has been sharing information about where the nearest grit bin can be found, and getting the gritters out on the road. Will the Secretary of State join me in praising them for helping residents to prepare for the recent appalling conditions?
The Secretary of State will be aware that no money was spent in control period 5 on supporting enhancements to the rail infrastructure in north Wales. Having seen the unanimity in north Wales and in north-west England on Monday this week, does he not accept that our time has come for cross-border rail investment?
As the hon. Gentleman knows, I went to that event and made a commitment. I praise my right hon. Friend the Member for Clwyd West (Mr Jones) for bringing the event together and thank all the Members from north Wales who attended. I gave a clear indication of the Government’s sympathy with the need for the Crewe hub. I talked about the re-signalling on parts of the route, which will improve performance on the line. The hon. Gentleman will be aware, as the Member of Parliament for Wrexham, that we are now carrying out the study on how we deliver a proper service on the Wrexham to Bidston line. Under this Government, the time has certainly come for transport improvements.
BACT—Beccles and Bungay area community transport—plays a key strategic role in north Suffolk in serving remote rural areas and many vulnerable people. Will the Minister assure me that in assessing the feedback from his current consultation, his No. 1 objective will be to put the future of organisations such as BACT on a sustainable, long-term financial footing?
The A40 is one of the roads that could benefit from the creation of the major roads network. It is precisely designed to deal with those second-tier roads that were detrunked by the last Labour Government and tend to fall through the cracks between decision making in local communities and the national work done on the strategic road network. My expectation is that my hon. Friend and his local authority will be beating a path to my door when that funding is first released. However, I would say that his railway line is getting new trains much sooner than that, which I hope will be a benefit to his constituents.
Ministers say that they want to reduce roadside emissions. The road leading from the port of Liverpool has some of the biggest air quality problems in the country. Will the Secretary of State listen to calls for investment in rail freight as an answer to the problem?
This is precisely why I am so pleased to have started feasibility work on the reopening of the Skipton to Colne railway line, a route that could provide an important link across the Pennines. It is no doubt a matter of real frustration that it takes eight to nine hours for a freight train to travel from the port of Liverpool to the power station at Drax, and it is clear to me that we need additional transpennine capacity. This is one route that could deliver it. I look forward to seeing the conclusions from that study at the end of the year, which I think is the likely timetable.
This week of all weeks, rail passengers want up-to-date information about delays and cancellations, but Southeastern’s website has failed to provide any live-time updates in any single rush hour this week, today included. Will Ministers bear that in mind when the franchise comes up for renewal?
My constituent Jim Irvine, who was active all his life, now suffers from motor neurone disease, and, like many other people, relies on his mobility scooter for independence. Scooters are currently banned from the Tyne and Wear metro. What will the Secretary of State do to remedy the situation, and will he give assurances that our promised new rolling stock will include provision for mobility scooters?
As the hon. Lady says, it is time that we had new rolling stock on the Newcastle-upon-Tyne metro. I expect to see updated, modern rolling stock that can provide proper accessibility for people with disabilities. The decision about the configuration will of course be made locally, but I certainly expect the money that is available to be spent on disability-compliant rolling stock.
Will my right hon. Friend give us an update on the progress of the negotiations on air connections with the European Union after we leave in March next year?
The European Commission has published its negotiating position on aviation links. There have been a lot of scare stories around over the last few months, but the Commission has said that in all circumstances—whether or not we have a trade deal, and whether or not we have an implementation period—there must be an aviation agreement. There is a recognition on the Commission’s side that the flights need to continue, and there is an absolute commitment on our side. I met my Spanish counterpart yesterday, and we agreed that it was essential for flights to continue. We will all work to ensure that there is absolutely no interruption in services.
Does the Secretary of State understand the severe disappointment and anger in the far south-west about the sham of a south-west rail strategy that was published yesterday? Will he now do the right thing, and, instead of re-spinning the £50 million that has already been announced, match Labour’s £2.5 billion rail investment plan for the south-west?
I will take no lessons from the party that did nothing for transport in the south-west over a long period. This Government are doing things that Labour never did—dualling the A303, providing brand-new trains, and resignalling in Cornwall to increase the number of rail services. The hon. Gentleman should be embarrassed about his party’s record.