High Speed 2, Phase One: Government Response to the Lords Select Committee Report

Lord Grayling Excerpts

Tuesday 17th January 2017 Written Statements

[The Secretary of State for Transport (Chris Grayling)]

I am today publishing the Department’s response to the special report from the House of Lords Select Committee for the HS2 Phase One hybrid Bill that was published on 15 December 2017.

The Lords Select Committee was tasked with considering petitions from those specially and directly affected by the Bill and subsequent additional provisions to the Bill. Their first special report concludes the Committee deliberations which began in May 2016. The Lords Select Committee considered 822 petitions lodged against the HS2 Phase One hybrid Bill. Of these, the locus of 278 petitions was successfully challenged. Of the remaining 544 petitions the Select Committee heard 314 petitions in formal session, with the remainder withdrawing, or choosing not to appear before the Select Committee, mainly as a result of successful prior negotiation with HS2 Ltd.

The Select Committee’s recent report summarises their hearings and contains modifications to the Bill powers, directions for action by the promoter in a number specific cases and more general recommendations on what actions the promoter should take on a range of other issues.

In responding to the Select Committee we have confined our response to those areas of the report where the Select Committee has requested the Government take action or where we believe a further clarification would be beneficial.

Alongside the response to the Select Committee report, we are also publishing the Statement of Reasons Command Paper. The Statement of Reasons is required by Parliamentary Standing Order 83A in order to assist the House of Lords during the Third Reading of the HS2 Phase One hybrid Bill. This document summarises the work that has already been done to assess, control and mitigate the environmental impacts of HS2 Phase One, and explains why the Government continue to take the view that the HS2 Phase One project is worthy of Parliament’s support.

Copies of the response to the Select Committee can be found on the www.gov.uk. website. Copies of the Statement of Reasons will be made available in the Libraries of both Houses.

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Oral Answers to Questions

Lord Grayling Excerpts

Thursday 12th January 2017 Commons Chamber

[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

2. What plans he has to improve services for passengers on Southeastern rail.

[The Secretary of State for Transport (Chris Grayling)]

We will launch the formal consultation on proposals for the new Southeastern franchise in February. I hope that people across the franchise area will participate in it, enabling my Department and the team working within the franchise to make informed decisions about the specification for the next franchise, particularly regarding how we expand capacity for passengers.

[Matthew Pennycook]

Not only are my constituents of all political persuasions disgusted by the manner in which the Secretary of State has politicised this issue, but they have absolutely no confidence in his proposed solution for the Southeastern franchise. A previous attempt to merely involve Transport for London in the design of Southern’s 2009 to 2015 franchise failed because that did not involve its proven concession model for suburban rail services, so can the Secretary of State tell us why on earth he thinks that repeating this failed approach will deliver much-needed improvements for Southeastern passengers?

[Chris Grayling]

There has been no politicisation of this discussion. This decision was taken after the Mayor’s business plan was analysed across government, and after discussions with neighbouring authorities and people who know the route. The truth is that the Mayor’s proposals offered no extra capacity for passengers but a whole lot of uncosted, unfunded promises. They also involved a very substantial top-down reorganisation. The approach we have chosen is the same one that we have taken for Northern and in the midlands, which is to create a partnership to develop a franchise that will work for all passengers in Kent and south-east London to deliver the capacity that we need.

[Charlie Elphicke (Dover) (Con)]

I support the Transport Secretary on that. My constituents in Kent are deeply concerned that, for too long, London has acted as a selfish city seeking to benefit itself at the expense of the people of Kent and the other home counties. It is not right for London to act like a “Hunger Games”-style capital seeking to subjugate the districts. We need fair rail services for Kent, Essex and the other home counties, and I urge the Secretary of State to carry on and to uphold his decision.

[Chris Grayling]

I assure my hon. Friend that I have every intention of doing so. This is a partnership arrangement that brings together London, Kent County Council and my Department to do the right thing for passengers. It is interesting that the Mayor could offer no proposals to expand capacity on these routes. I intend to bring forward proposals that do offer expanded capacity for passengers on those routes.

[Andy McDonald (Middlesbrough) (Lab)]

The Secretary of State’s leaked letter reveals that he reneged on the suburban rail agreement because of his obsession with keeping services “out of the clutches” of a potential Labour Mayor—those are his words. He has put party politics ahead of passengers and clearly prefers to see trains running late than running on time under Labour. Will he now agree to an independent assessment of the proposal by a respected figure outwith his Department, given yesterday’s revelations of conflicting commercial interests, to restore credibility to the process and ensure proper consideration of the needs of long-suffering passengers?

[Chris Grayling]

I cannot believe what I have just heard from the hon. Gentleman. He talks about putting party politics before passengers in the week when the Leader of the Opposition said that he would join a picket line to perpetuate the unnecessary strikes on Southern rail that are causing so much damage to passengers. I will not take the hon. Gentleman seriously until I hear him condemning those strikes and telling the workers to go back to work.

[Ian C. Lucas (Wrexham) (Lab)]

3. What recent discussions he has had with Ministers of the Welsh Government on cross-border transport.

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[The Secretary of State for Transport (Chris Grayling)]

I am committed to managing the cost of HS2 and ensuring maximum value for the taxpayer. Total expenditure on HS2 in the period from 2009-10 to 2015-16 was £1.4 billion, of which £450 million was spent on land and property. The rest has ensured that HS2 is on track for delivery, and includes money for developing the scheme design, consulting affected communities, bringing the High Speed Rail (London – West Midlands) Bill to Parliament and developing HS2 Ltd. Figures for the current financial year will be available in the summer.

[Mrs Gillan]

The cost of HS2 is not just to the taxpayer but to those it affects. The House of Lords Select Committee on the HS2 Bill has recommended amending it to ensure that HS2 Ltd does not have a blanket power to compulsorily purchase land for regeneration or development, and to provide that it must limit its land acquisitions to what is needed for the scheme, particularly in relation to clause 48. As you know only too well, Mr Speaker, farmers, landowners and communities have been blighted for years by the scheme, and the threat of further compulsory purchase orders is truly worrying. Can the Secretary of State reassure me that he will accept the Committee’s important and very welcome recommendation on clause 48 and alleviate the anxiety of those affected by this project?

[Chris Grayling]

First, on behalf of the Government, I thank all members of the House of Lords Select Committee for their work over the past few months. Indeed, I thank those who served on the equivalent Committee in this House, for whom this was a long and arduous task. We are carefully considering the Lords recommendations and we will publish our response shortly. If my right hon. Friend will forgive me, I will save my detailed response for that publication, but I am looking extremely carefully at the recommendation to which she referred.

[Mr Clive Betts (Sheffield South East) (Lab)]

I am sure the Secretary of State is aware that, with regard to the option to have a station in the centre of Sheffield, there is currently no money to get trains out of the station and north to Leeds, and there is no money to increase the station’s capacity at the southern end to get better connectivity to trans-Pennine trains. There is even no money to electrify the line between Sheffield station and the main HS2 route. Does this not increasingly look like a cut-price option? Will he agree to meet local MPs and councillors, and other interested parties, to discuss these matters?

[Chris Grayling]

May I start by wishing the hon. Gentleman a happy birthday? [Hon. Members: “For tomorrow.”] For tomorrow. The Under-Secretary of State for Transport, my hon. Friend the Member for Harrogate and Knaresborough (Andrew Jones), has indeed been involved in such discussions, but I remind the hon. Gentleman that the original proposal for a station at Meadowhall was opposed by the city council, which wanted the route to pass through the city centre. It is in response to pressure from within Sheffield that we have revisited those original plans, but I assure him that those discussions will continue.

[Maggie Throup (Erewash) (Con)]

Does my right hon. Friend agree that although the costs of the project need to be kept under control, the economic benefits it will bring to areas such as Long Eaton in my constituency will far outweigh some of the costs that we are talking about today?

[Chris Grayling]

This is one of the key aspects of the development of this project, so my hon. Friend makes an important point. What is happening in the area around Long Eaton, and the new development of a station and surrounding facilities at Toton, will make a huge difference to her area. As she knows, we have been discussing how best to make sure that we get the right solution for Long Eaton, but we will continue to work for her constituents to reflect in the final design what works best for them.

[Robert Flello (Stoke-on-Trent South) (Lab)]

Given what will be the eye-wateringly huge final costs of HS2, surely it makes sense to maximise the use of this asset, so will the Secretary of State tell us whether the line will be used 24 hours a day, seven days a week? If not, will the otherwise wasted capacity be used for freight—and if not, why not?

[Chris Grayling]

Of course the whole point about HS2 is that it releases capacity on the existing west coast main line for freight. As a result, I see the potential for significant increases in freight across the west coast main line area. As for timetabling, that is a matter for those who decide what is the best commercial proposition for that route, but we expect, and are planning for, very intensive use of the route across a wide variety of destinations, including Stoke-on-Trent.

[Michael Fabricant (Lichfield) (Con)]

My right hon. Friend’s last answer worries me slightly. Lichfield suffers all the disadvantages of having the line go through it and no station, because it is too small. I was hoping that he would say that the freeing up of capacity would mean that the west coast main line could have more trains stopping at Lichfield Trent Valley, but is that now not going to be the case, because the line will be blocked up with freight?

[Chris Grayling]

No, I think there will be room for both. The benefit of HS2 is that it provides an opportunity for more commuter trains, more intermediate trains and more services to places that do not currently receive them. By taking the fast trains off the west coast main line—trains that go straight up to places such as Manchester and Liverpool—more opportunity is provided for better services in places such as Lichfield and the Trent valley, which the current mix of services makes it difficult to achieve.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

Mr Speaker, you and the Minister will remember that when I said that the cost of HS2 would soar past £60 billion I was mocked, but it is now past £60 billion and rising. The chief executive has quit and the people in my constituency would like this folly to be stopped now, with the money—£60 billion and rising—put into saving the health service and into our local government, which is going bankrupt.

[Chris Grayling]

I hate to disappoint the hon. Gentleman but actually the plans for HS2 have been widely welcomed across the north of England. The project will make a significant difference to the economy of his region. The point I would make to him about cost is that one reason why we are spending more money than is spent on equivalent lines in some other countries is because we are spending money on amelioration measures that minimise the impact on the environment.

[Iain Stewart (Milton Keynes South) (Con)]

As well as updating the costs of the project, may I urge my right hon. Friend to update the economic benefits to communities such as mine in Milton Keynes, which, as he says, will benefit from a significant increase in commuter and inter-city traffic as a result of the release of capacity on the west coast line?

[Chris Grayling]

We will continue to provide information about the benefits of this project, but my hon. Friend is right to say that in places such as Milton Keynes—it is one of our most important growth areas, and it will need more commuter services north to south and east to west—the introduction of HS2 will make it possible to deliver a much better service for his constituents and others.

[Margaret Ferrier (Rutherglen and Hamilton West) (SNP)]

The Adam Smith Institute has warned that HS2 could end up costing up to £80 billion, which would equate to nine times more per mile than comparable high-speed tracks in France. How can the Government assure the public that the already sky-high costs of this project are not going to spiral even further out of control?

[Chris Grayling]

As I said, this is a choice; we want not only to deliver high-quality infrastructure for the future, but to do so in a way that is environmentally sensitive. That means spending money on tunnels, cuttings and things that other countries would perhaps choose not to do. I want to retain a careful stewardship of Britain’s green and pleasant land while delivering what we need for the future, and that is what we are doing.

[Nigel Mills (Amber Valley) (Con)]

7. What recent assessment he has made of progress on delivery of Access for All projects by Network Rail.

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[Daniel Kawczynski (Shrewsbury and Atcham) (Con)]

10. What his plans are for the next rail franchise for Wales and Borders; and if he will make a statement.

[The Secretary of State for Transport (Chris Grayling)]

It has been agreed in principle that Welsh Government Ministers will procure and manage the next Wales and Borders rail franchise. My Department is working closely with the Welsh Government to ensure the appropriate transfer of the necessary powers. However, I want to make it absolutely clear that, as part of those arrangements, we are ensuring that the train services and stations used by passengers in England are protected and, importantly, treated consistently with those in Wales, both during this procurement process and across the whole life of the franchise.

[Daniel Kawczynski]

That is a very welcome answer from the Secretary of State. We have briefed him about the extraordinary overcrowding on Arriva trains over the past few years, particularly in the summer months—with the windows sealed and a lot of people cramming into the carriages, it has been intolerable. Will he ensure that the next franchise accommodates the levels required for passengers to travel safely and more services from Shrewsbury to Birmingham airport?

[Chris Grayling]

I am aware of the capacity issues on the Wales and the Borders franchise and, indeed, on the CrossCountry franchise. One of the challenges, owing to the rapid growth in recent years, is that there are not enough diesel trains to go around at the moment. I had the great pleasure of being at Newton Aycliffe in County Durham for the launch of the first new hybrid train to be manufactured there. That will open up the opportunity for us to deliver significant change to rolling stock across our network, and will enable us to address many of the overcrowding challenges to which my hon. Friend refers.

[Chris Elmore (Ogmore) (Lab/Co-op)]

The Secretary of State will be aware that he decided last October to devolve the cross-border franchise to the Welsh Government, but current legislation does not allow a public sector organisation to bid for the new franchise. Will he think again and allow public sector organisations the ability to bid for the franchise, to allow the public the best possible service when it begins?

[Chris Grayling]

The Labour party is keen on renationalising our railways. What I would remind it is that if its policies were implemented we would lose the ability to deliver the new trains that are being delivered right across this country, paid for by private sector investment. What Labour Members are calling for is turning back the clock and having older trains on our network. I am afraid that that is not my view.

[Clive Efford (Eltham) (Lab)]

11. What plans he has for the future role of the public sector as a result of the development of rail franchising policy.

[The Secretary of State for Transport (Chris Grayling)]

Franchising has been instrumental in improving the railways for passengers and as part of the enormous growth in rail usage since privatisation 20 years ago. Our approach to rail reform is about delivering an improved service for passengers through better teamwork between Network Rail and passenger rail franchises, and making Network Rail more customer focused by giving more power to its local route managers.

[Clive Efford]

We now know that the Secretary of State is putting politics before the interests of passengers, and he is taking a dogmatic approach by ignoring what could improve our railway system. He has refused to allow the Mayor of London to take over suburban services, in spite of the fact that his predecessor thought that that was a good idea. The public are in favour of public ownership: 58% of people polled by Transport for London are in favour of the Mayor having greater control over suburban services and only 14% support his position. Is it not time that public ownership of our railways was considered by the Government, and are not the public in favour of it?

[Chris Grayling]

It is hardly a surprise that Conservative Members for constituencies outside London have doubts about a Labour Mayor inside London running local services, particularly when the Mayor delivered a business plan that did not offer improved capacity and was founded on a lot of uncosted promises. So far from this Mayor, we have seen a fare freeze that was not a fare freeze and a London of no rail strikes with a rail strike last Monday. I do not take the Mayor’s promises at face value, I am afraid. We have taken a partnership approach that also listens to the people of Kent, who are equally important in this franchise and said they should be equal partners with the people of London in designing it.

[Martin Vickers (Cleethorpes) (Con)]

In 1993, the public sector British Rail withdrew services on the Cleethorpes to Sheffield line, making it a Saturdays-only service, which means that people in Gainsborough, Brigg and such towns cannot get to Cleethorpes to enjoy all that it has to offer. As yet, the private sector has not seen fit to restore that service to six days a week. Will the Secretary of State or one of his Ministers meet me and Members for neighbouring constituencies to discuss the issue?

[Chris Grayling]

We are always happy to talk to my hon. Friend, who remains a doughty champion of his constituency, but he is right to make the point that if we turned the clock back 30 or 40 years to the days of British Rail, the debate in the House today would be about line closures, station closures and a reduction in services. Today, the issues are overcrowding due to numbers rising so fast, new stations, improved facilities and new trains. That is the difference between the policies we have followed and the policies Labour Members want to follow.

[Andy McDonald (Middlesbrough) (Lab)]

The Government’s franchising policy lies in tatters, with desperate attempts to retrofit contracts to protect operators’ profits and, as revealed yesterday, National Express taking the money and running, selling the c2c franchise to the Italian state. The Secretary of State’s director of passenger services awarded the disastrous Southern franchise, while owning shares in the company and advising the winner bidder. The country has had enough of these sleazy deals. Is it not way past time for franchising to be scrapped and the UK rail industry to be revitalised through public ownership?

[Chris Grayling]

The clock ticks ever backwards. The Opposition do not want inward investment or private sector investment in our railways, but, of course, we still do not hear from them any words on behalf of passengers about the strikes. The Labour party takes money from the rail unions and defends them when they are on strike, no matter what the inconvenience to passengers is. The Opposition are a disgrace. They should stand up and say that these strikes should stop. I will say one thing about the Mayor of London: at least he had the wit and wisdom this week to say that the strikes are wrong. I hear nothing from the hon. Gentleman about the strikes being wrong.

[Craig Whittaker (Calder Valley) (Con)]

12. What progress has been made in encouraging the use of ultra-low emission vehicles.

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[Tom Pursglove (Corby) (Con)]

T1. If he will make a statement on his departmental responsibilities.

[The Secretary of State for Transport (Chris Grayling)]

As you will be aware, Mr Speaker, I have said in this House and elsewhere that I am very committed to improving the transport situation in the south-west, and I am pleased today to announce a new phase in our £7 billion plan for that region. We are launching the next stage of the formal consultation on a major upgrade to the A303—the main A road into Devon and Cornwall. This involves the development of the 1.8-mile tunnel past Stonehenge, which will protect that world heritage site from traffic, reduce local congestion, and speed up journeys to and from the region. We will now be talking to local people to the west of that tunnel about precisely which route it should take around the village immediately to the left. In addition, we are committed to upgrading the remaining sections of the A303 between the M3 and the M5 to dual carriageway. The next step will be public consultations on the A303 Sparkford to Ilchester and A358 Taunton to Southfields schemes that will come very shortly.

[Tom Pursglove]

A 79-year-old constituent has been repeatedly refused car hire contracts by leading rental companies. What assessment has the Secretary of State made of any restrictions that are being placed on OAPs by these rental companies?

[Chris Grayling]

I understand my hon. Friend’s concern. This is a very difficult issue. The Equality Act 2010 provides general protection against age discrimination for people of all ages, but there is an exemption for a person conducting an assessment of risk for the purposes of providing a financial service to another person. My Department has not made the assessment that my hon. Friend describes, but I encourage his constituent to contact the British Vehicle Rental and Leasing Association, which should be able to help him in identifying a suitable provider.

[Daniel Zeichner (Cambridge) (Lab)]

An icy chill is about to descend on parts of the country. That is not an impending DFT ministerial visit, I hasten to add—it is of course the impending weather front. Will the Secretary of State tell us about the state of preparations for gritting our roads in the coming days? What discussions has he had with his colleagues and those in local government to ensure that at least our roads run more smoothly than our railways?

[Chris Grayling]

I can assure the hon. Gentleman that there was no icy chill last time I visited Cambridge, when he and I were there for the first bit of work, albeit a rather small bit of work with a spade, on the A14 project, which will make a big difference to Cambridge. My ministerial team and I have had detailed discussions about this in recent weeks, and the Under-Secretary, my hon. Friend the Member for Harrogate and Knaresborough (Andrew Jones), has been in regular contact with local authorities. We have in this country, if not a salt mountain, plenty of salt and plenty of grit. We estimate that we have what is necessary to cope with the winter ahead, but we will obviously keep that under review.

[Daniel Zeichner]

I thank the Secretary of State; let us hope that we are well prepared. Taking him back to the time just before Christmas, given that soon after his visit to Cambridge he told the Evening Standard that cycle lanes cause problems for road users, will he clarify exactly who he thinks road users are? While he is thinking about cyclists—a helpful clue—could he explain why it is taking such an extraordinarily long time to produce a cycling and walking investment strategy?

[Chris Grayling]

Cyclists use cycle lanes, and motorists and other road users use the roads alongside them. That is fairly straightforward, to be honest. If the hon. Gentleman is eagerly anticipating our cycling and walking strategy, he does not have long to wait.

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[George Kerevan (East Lothian) (SNP)]

T7. Brexit will cause a dangerous free-for-all in cabotage. Will the Minister agree to meet the Scottish Government to consider how to avoid that?

[Chris Grayling]

I think we are some way away from that. Discussions have to take place between our Government and the European Union on arrangements post-Brexit. They will take place, and we will inform the House of progress on the matter in due course.

[Peter Aldous (Waveney) (Con)]

A start has been made in the first road investment strategy on upgrading the A47 from Lowestoft to the A1. I would be grateful if the Minister could confirm that he will work with me and other East Anglian colleagues on the second road investment strategy to ensure that this good work continues.

[Richard Arkless (Dumfries and Galloway) (SNP)]

T8. The A75 in my constituency benefits from Euro-route designation. Will the Secretary of State assure my constituents that he will support the continued designation of Euro-routes after the UK leaves the European Union?

[Chris Grayling]

I have to confess that I have never heard anyone in this country, north or south of the border, refer to an A road in the United Kingdom as a Euro-route. If they cease to be Euro-routes after we leave the European Union, I suspect that we will be able to count the number of people who miss that on the fingers of one hand.

[Mr Stewart Jackson (Peterborough) (Con)]

I declare an interest as a daily commuter on the east coast main line, which is a very well run strategic route. Service outages, infrequent as they are, can be very disruptive. May I ask the Minister to prevail on train operating companies and Network Rail to improve communications with passengers in real time, to ensure that passengers are made aware of these problems and can make alternative arrangements as necessary?

[Mr Dennis Skinner (Bolsover) (Lab)]

Will the Secretary of State reject the new proposal of a spur line from HS2 in the constituency of Bolsover between Hilcote and Morton? Not only will it cut the Blackwell council in two, but it will destroy scores of houses in the village of Newton. Will he have a look at the letter I have sent him, in order to pacify the people of Blackwell about this mad idea?

[Chris Grayling]

Of course I will. I have taken a close interest in the eastern leg, and I have been up and down most of the route myself. I am very keen that we deliver the economic benefits, but that we do so in the way that works best for local communities. I am happy to take a look at the issue that the hon. Gentleman has raised.

[Huw Merriman (Bexhill and Battle) (Con)]

It has been yet another week of misery for hundreds of thousands of passengers on Southern rail. Given that the unions have received guarantees on jobs, on pay and—from the independent rail safety regulator—on safety, would the Government now support Conservative proposals to limit strikes, or at least the impact of strikes, via legislation?

[Chris Grayling]

There is a lot of interest in the matter, and a lot of calls have been made for such measures to be taken. We are considering carefully how we approach future issues. Of course, nothing in legislative terms would solve the current dispute. I think my hon. Friend will join me in expressing the disappointment of Conservative Members about the fact that we have not heard from the Opposition today one word of regret or condemnation, and not one call for the unions to go back to work. They just do not care.

[Kirsten Oswald (East Renfrewshire) (SNP)]

The RAC has estimated that drivers have been over-charged by hundreds of millions of pounds owing to over-zealous enforcement by private car parks. Requiring operators to sign up to accredited trade associations would help to stop that type of behaviour. Does the Secretary of State agree that having all companies sign up would ensure that their business models were based on fair treatment of the motorist?

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[Anna Soubry (Broxtowe) (Con)]

In Broxtowe, there is widespread and cross-party support for HS2. Of course, we get the east midlands hub at Towton, but there is still concern about the route. Will my right hon. Friend assure residents in Trowell, Strelley Village and Nuthall that their voices will be listened to and that, if necessary, changes to the route will be made without affecting the timetable for delivery?

[Chris Grayling]

I can absolutely give my right hon. Friend that commitment, as I did to the hon. Member for Bolsover (Mr Skinner) a moment ago. The route will bring huge benefits to the east midlands and to Yorkshire, including the areas around Sheffield, but I want to make it clear that we will be as thoughtful and careful as we can about the detail of the route. The reason for the consultation is that it gives us a chance to listen to those views, and we will.

[Stewart Malcolm McDonald (Glasgow South) (SNP)]

Mr Speaker, you will be aware of the Vauxhall car fire scandal. Last month, I hosted in the House of Commons around 25 people who had been affected, and heard about traumatised children and how the incidents led to increases in insurance excesses and cost families thousands of pounds. Will a Minister agree to meet not me—I am not interested in meeting Ministers myself—but the families of those affected?

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[Mr David Nuttall (Bury North) (Con)]

Will my right hon. Friend provide an update on the progress of plans for a new cross-Pennine road link?

[Chris Grayling]

As my hon. Friend will know, we have recently announced plans to dual the A66. We are currently waiting for the conclusion of the work on the potential for a trans-Pennine tunnel. I give my hon. Friend an absolute assurance that whether or not it is recommended that that work go ahead, our commitment to delivering trans-Pennine improvements will not be affected in any way by the outcome of that study.

Transport Council

Lord Grayling Excerpts

Monday 12th December 2016 Written Statements

[The Secretary of State for Transport (Chris Grayling)]

I attended the only Transport Council under the Slovak presidency (the presidency) in Brussels on Thursday 1 December.

The Council adopted a general approach to update the civil aviation safety regulatory framework of the European Aviation Safety Agency (EASA), the first on an aviation file since 2014. I welcomed the beneficial move away from prescription to proportionate risk and performance based regulation which was also widely supported by other member states. I supported efforts to encourage innovation and growth, particularly for unmanned aircraft, although shared the concerns of other member states on the need to carefully monitor developments in this sector in urban areas.

The Council adopted a general approach on the revised directive for safety rules and standards for passenger ships. I supported this approach and the objective of simplifying and clarifying the existing directive, in particular the proposal that standards for the smallest passenger ships are better suited to regulation at national level. A general approach on the amending directive on the system of inspections for ro-ro ferries and high speed passenger craft was also adopted. I welcomed this revision which clarifies and simplifies the inspection regime, providing clear guidance on carrying out inspections while maintaining the same level of safety. A progress report on the proposal to review the directive on the registration of persons sailing on-board passenger ships was also noted by the Council.

Under any other business, a range of items were discussed. At the request of Germany, the Commission gave its views on the progress of revisions to the real driving emissions regulations and called on member states for support on agreeing EURO V standards and creating a regime for EU supervision and centralised type approval. Commissioners Bulc and King gave an update on the Commission’s recent work on transport security, highlighting that aviation security in the EU was well advanced but that the Commission was considering legislative action for maritime and land transport. I welcomed co-operation and sharing best practice but, along with other member states, expressed the importance of a proportionate approach and the need to maintain accessibility for passengers.

At the request of France and Germany, the Commission provided an update on the forthcoming roads initiatives followed by a discussion of member state priorities. I expressed support for a level playing field on implementation of cabotage rules and the need to balance effective enforcement of regulations with reduced administrative burdens for small and medium sized businesses. During the discussion member states expressed concerns around the need to improve social conditions in the road haulage sector, the problem of fraudulent drivers’ hours reporting, and minimum wages for foreign drivers.

In addition, the Commission updated the Council on: global efforts to reduce transport emissions at the 39^th Assembly of the International Civil Aviation Organisation (ICAO), at which the UK played a pivotal role and the International Maritime Organisation’s Marine Environment Protection Committee; its low emission mobility strategy; the state of play on the Galileo project, its recent work on women in transport aimed at recommending ways of attracting more women into the transport sector; the recent review of the cross-border enforcement directive; and the road safety statistics for 2016. Member states were broadly supportive of the recent work done by the Commission, and set out domestic measures to cut transport emissions and improve the gender balance in transport.

There were also a range of information points from member states under Any Other Business. The Cypriot delegation provided information on the draft EU-Turkey aviation agreement in relation to sovereignty, non-discrimination and aviation safety; the Dutch updated the Council on cooperation in the field of connected and automated driving; and the Maltese delegation set out their transport priorities for their forthcoming presidency.

Over lunch, Commissioner Bulc and the Vice President of the European Investment Bank led a discussion on the European fund for strategic investments.

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Rail Infrastructure (Train Operating Companies)

Lord Grayling Excerpts

Tuesday 6th December 2016 Commons Chamber

[Andy McDonald (Middlesbrough) (Lab)]

(Urgent Question): To ask the Secretary of State for Transport if he will make a statement on the Government’s plans for train operating companies to take responsibility for track and infrastructure from Network Rail.

[The Secretary of State for Transport (Chris Grayling)]

The hon. Gentleman has clearly misunderstood our plans, so let me explain them to him.

This morning I laid a written statement in both Libraries of this House setting out my vision for reforming the railways in a way that puts passengers at the heart. This is about providing better and more reliable journeys for passengers.

Britain’s railways are crucial to our economic future, and we have seen very substantial growth in passenger numbers since privatisation, but this growth brings challenges and the impact of disruption can be immediate, significant and wide-ranging. So our railways need to adapt and change in order to be able to cope with this huge expansion in the number of passengers. We are spending very large amounts of money trying to tackle the challenge, with new and longer trains, more capacity being introduced across the country, and big projects like Crossrail and small projects that make a difference locally.

Earlier this year, Nicola Shaw recommended that Network Rail should devolve responsibility to the route level. I support the principles of the Shaw report, and I support Network Rail’s reform programme, but there is more to do.

I therefore intend to press ahead with Sir Roy McNulty’s recommendations on how to make the railways run better and more cost-effectively. I will do this initially at an operational level. In order for all those involved to be incentivised to deliver the best possible service for the passenger, I expect the new franchises, starting with Southeastern and East Midlands, to have integrated operating teams between train services and infrastructure, working together in the interests of the passenger. I will also be inviting Transport for London and Kent County Council to be more closely involved in developing the next Southeastern franchise by embedding their own representatives in the team that develops, designs and monitors that franchise.

We will continue to develop the model for greater alignment of track and train as further franchises are renewed, including the option of joint ventures. In the meantime, my Department is also publishing an update to the rail franchising schedule, which I am placing in the Libraries of this House.

I also want to bring new skills to the challenge of upgrading our railways. I will begin by looking at the reopening of the link from Oxford to Cambridge. I am going to establish East West Rail as a new and separate organisation, to accelerate the permissions needed to reopen the route, and to secure private sector involvement to design, build and operate the route as an integrated organisation. This East West Rail organisation will be established early in the new year and chaired by the former chief executive of Chiltern Railways, Rob Brighouse.

These reforms will set the railway on a firmer footing for the future. We can, and will, make sure our rail network plays its part in making this country a country that works for everyone. I will bring forward in due course a new strategy for our railways with more detail on what I am setting out today.

[Andy McDonald]

Private companies will only engage with the Secretary of State’s plans if they believe that they will be able to extract yet further value from Britain’s railways at the expense of taxpayers and commuters. Not only does this mean poor value for the public, but it also risks compromising safety. The last time the Tories privatised the rail tracks it resulted in a series of fatal accidents, which led to the creation of Network Rail in the first place. Now the Secretary of State wants to start us on a slippery slope back to the bad old days of Railtrack, with profit-chasing companies being entrusted with the safety-critical role of being responsible for our rail infrastructure. Has he not learned the lessons of Railtrack, or is he simply choosing to ignore them? Why does he expect things to be different this time?

Will the Secretary of State explain how his planned “integrated operating teams” will be different from the “deep alliances” between Network Rail and South West Trains, which were abandoned, and from the similar arrangement between Network Rail and ScotRail, which is performing abysmally? Will the same system of regulation apply in his new landscape? What discussions has he had with the Office of Rail Regulation about this? What costings have been done for this programme? Has a cost-benefit analysis been carried out? It is time for our railways to be run under public ownership, in the public interest, as an integrated national asset in public hands, with affordable fares for all and with long-term investment in the railway network. Sadly, today’s announcement will take us further away from that than ever before, but an incoming Labour Government will redress that as a matter of urgency.

[Chris Grayling]

Fortunately, there is not an imminent Labour Government. The trouble is that Labour Members want to turn the clock back to the days of British Rail and of the unions having beer and sandwiches at No. 10. We want to modernise the railways and make them work better. This is not about privatisation. I am not privatising Network Rail. I am creating teams on the ground with the same incentives to work together in the interests of the passenger. An essential part of that —the bit the hon. Gentleman has not spotted—is that the Shaw recommendations on route devolution, which will give real power to local teams to make decisions about their routes without always referring to the centre, will make it possible for those alliances to work much better than they have in the past. We know that where there have been alliances, they have made something of a difference, but they could do so much more.

This is not rocket science. If the trains are being run from over here and the tracks from over there, when things go wrong we get two separate teams waving contracts at each other rather than working together. Of course our railways do not maximise their potential. This is about forging teamwork on the ground to respond to challenges, to plan better and to deliver a better service to passengers. That is what we should all be aspiring to. Moving the deckchairs around, renationalising the railways and taking away hundreds of millions of pounds a year of investment in new trains from the private sector would take our railways backwards and make the travelling public worse off. This is a sign that, as always, the Labour party has not made it into the modern world.

[Mrs Theresa Villiers (Chipping Barnet) (Con)]

I warmly welcome efforts to create greater integration between those who run the tracks and those who run the trains, but will my right hon. Friend acknowledge that a one-size-fits-all model would not be the right one, because certain lines are so heavily used by diverse operators that such a degree of integration would be difficult to achieve?

[Chris Grayling]

That is absolutely right. It is very straightforward in areas where there is complete synchronisation between the Network Rail routes and the train operators, such as on the west coast main line, which has multiple operators. We also have to be careful to protect the interests of freight operators and open access operators. I am not planning to change the fundamental regulatory structure, but by forging teams together by letting franchises and structuring Network Rail in a way that allows them to integrate, we will be able to deliver better day-to-day performance and a more reliable railway over the vast majority of our network.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

The Secretary of State is right to acknowledge the problems with our rail network, but he should not remedy them through further privatisation. There is higher passenger satisfaction and reliability in Scotland than on any other network in the UK, but Scotland could do better. Will he agree to devolve power over Network Rail to the Scottish Parliament?

[Chris Grayling]

The hon. Gentleman has just described progress in Scotland, but the point that he has missed is that Scotland is the one place where we have a working alliance of the kind I am talking about. What he is describing is a step on the road to the model that I want to create across the railway, which he says builds passenger satisfaction. That is why this is the right thing to do. It is not about privatisation; it is about teamwork to deliver a better service for the passenger.

[Stephen Hammond (Wimbledon) (Con)]

Although Network Rail does many things well, it is often cumbersome and unresponsive to the customer. Will my right hon. Friend confirm that the purpose of his virtual operating companies is to bring scale benefits in cost and service to the customer?

[Chris Grayling]

My hon. Friend, who has great experience in such matters, is absolutely right. Right now, the incentives for team members in Network Rail are different from those in train operators. The incentive across the entire railway network should be to do a better job for the customer. Part of that process will involve aligning incentives so that everyone has the right motivation to deliver for the people who matter: the customers.

[Mrs Louise Ellman (Liverpool, Riverside) (Lab/Co-op)]

A joined-up approach could bring benefits and has been called for on many occasions by, among others, the Transport Committee. How will safety be protected in the specific model that the Transport Secretary now advocates? Could it be the beginning of a highly expensive fragmentation of the system?

[Chris Grayling]

The opposite is the case. This is not about fragmentation; it is about joining up. As the hon. Lady will know, we have various teams on the ground across our railways, some looking after the track and some looking after the trains. Sometimes they work together well, but sometimes they do not. By creating a structure that shapes teams on the ground, which involves decentralisation within Network Rail of the kind recommended by Nicola Shaw and the sort of partnerships that Sir Roy McNulty recommended, we will reach a place, about which the hon. Lady has talked in the past, where we have a more joined-up railway that does a better job for the customer.

[Sir Roger Gale (North Thanet) (Con)]

I congratulate my right hon. Friend on taking an initiative that could and should have been taken about 20 years ago. I am delighted that my constituents travelling from east Kent will be among the first to benefit from better co-operation between Network Rail and the train operating company. Will he indicate whether funding will be available for the Kent coast line to be brought at least into the 20th century and preferably into the 21st century?

[Chris Grayling]

Following the new Southeastern franchise bids, I hope and expect to see the kind of benefit that we have seen on the East Anglian rail network, where every single train is due to be replaced as part of the new franchise. That is the sort of progress that makes a real difference to passengers, and I want to see that kind of improvement across the network, including on Southeastern. As the two sides of the railway work closer together, the ability to deliver small, incremental improvements quickly becomes better and more readily available, and we can then improve services.

[Mr Dennis Skinner (Bolsover) (Lab)]

This is a Minister who has a bit of form. In a previous job, he wrecked the prison system. He now has the job at Transport and is about to cause havoc there as well.

[Chris Grayling]

Let me surprise the hon. Gentleman by saying that I am the Minister who decided not to privatise the Prison Service, a decision which was described in my office by the Prison Officers Association as a victory. I hate to disabuse him, but I am not an inveterate privatiser; I am an inveterate improver of services.

[Sir Paul Beresford (Mole Valley) (Con)]

I thank my right hon. Friend for his encouraging response to the urgent question. A number of operators work with Network Rail in both our constituencies and not only has the number of complaints dropped dramatically but, more importantly, there has been a positive response to requests for service changes from the constituents.

[Chris Grayling]

That is right. Two rail routes run through my constituency. One is run by South West Trains and one by Southern. We understand the issues on the Southern network, but I recently went to a public meeting on the edge of my constituency about the service provided by South West Trains and found an audience broadly full of praise for the operator. There have been a bumpy few weeks this autumn and some things have gone wrong with the infrastructure on the network, but there are many decent people on our railways who have been there for a long time, working hard for passengers, and we must always recognise that.

[Derek Twigg (Halton) (Lab)]

Some of the main causes of delays and problems on the network include failures of signals, points and trains. Will the Secretary of State explain in specifics what will be different under his proposals from what currently happens?

[Chris Grayling]

Let me give the hon. Gentleman a specific example. About 10 days ago, there was a quite bad signal failure at lunchtime on the South West Trains network. I caught the train home during the evening peak, by which time the service was pretty much back to normal. It is a joined-up route that has the nearest thing to an alliance on the network, and the two sides work hard together to deliver improvements quickly when something goes wrong. That is an example of the benefits of joined-up working, as opposed to having to wait several hours for the two teams to decide how to do things together.

[Oliver Dowden (Hertsmere) (Con)]

I welcome the move towards greater integration with operating teams. Does the Secretary of State share my hope that that might stop the buck-passing between train operating companies and Network Rail, which many of my constituents north of the river on the Thameslink line have suffered daily and to which I drew his attention yesterday?

[Chris Grayling]

My hon. Friend is absolutely right about that. I make no pretence: there are some genuine problems on our railways at the moment. Those are mostly problems of intensive use and dramatic increases in passenger numbers, beyond anything envisaged even 10 years ago. So we have to deliver change and improvement, which comes partly through capacity improvements—a lot of money is being spent on the Thameslink route. It also comes through better performance on a day-to-day basis. I will never be afraid to hold rail companies’ feet to the fire if they do not deliver, but we also need to recognise that many of the problems arise on the infrastructure, and getting the two to work together to deliver real solutions to those problems has to be the right way forward.

[Caroline Lucas (Brighton, Pavilion) (Green)]

The Secretary of State has said that he wants less contracting complexity and more localised decision making, but giving more power over infrastructure to private train operating companies will create a new and uneven layer of contracting in the industry. How can he be confident that this will not lead to a return of the subcontracting culture, which was a major factor in the avoidable rail tragedies at Hatfield and Potters Bar?

[Chris Grayling]

I do not think the hon. Lady has been listening to me. I am not talking about creating complex new contracting structures; I am talking about teamwork on the ground. Where we have started this—the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) made the point about the situation in Scotland—it has made a difference. We need to deepen and strengthen these alliances, and create much stronger teamwork on the front line. That is what will make a difference.

[Helen Whately (Faversham and Mid Kent) (Con)]

I, too, welcome this announcement, including the proposal to involve Kent County Council more in the renewal of the Southeastern franchise. Day in, day out, rail commuters in my constituency have to cope with delays, to the extent that one constituent has even asked the managing director of Southeastern to write to his boss to explain why he is late each day. Will the Secretary of State therefore say more about how his proposals will enable my constituents to get to work on time?

[Chris Grayling]

I know that there has been disruption in the Kent area in the past couple of years because of the improvements at London Bridge, and there are lessons to be learned from the way they have been carried out to make sure that we minimise disruption in the future. We need big investments that will create extra capacity, but they have to be done in a way that causes as little damage as possible to ongoing services. I want the new franchise to deliver the best possible improvements to services in Kent and London, which is one reason why I reached the view that the design of the franchise has to be a three-way partnership between my Department, Transport for London and Kent, because this multifaceted franchise has to work for everyone.

[Diana Johnson (Kingston upon Hull North) (Lab)]

In east Yorkshire did we not have a plan for joined-up thinking, using a train operator called First Hull Trains to improve services for local people by electrifying the line to Hull? Was not that joined-up thinking abandoned by the Government just a few weeks ago?

[Chris Grayling]

What actually happened was that before the point of being able to take a decision on electrification on the Hull line, Hull Trains and TransPennine ordered bi-mode trains that deliver the service improvements without any additional investment in unnecessary infrastructure. That means we can spend more money around the network to improve services. People in Hull should be pleased, because they are about to get smart new trains that will really improve services.

[Jason McCartney (Colne Valley) (Con)]

We would all welcome more integrated teams working on behalf of passengers on our railways. Will the Secretary of State explain how this will work for my local passengers on the trans-Pennine route, bearing in mind that the Northern franchise runs out in 2025 and the TransPennine Express franchise runs out in 2023?

[Chris Grayling]

The central focus is likely to be the Northern franchise, and indeed that was Nicola Shaw’s recommendation. A large part of the rail network is relatively easy to deliver in this way, but in some parts where there are multiple operators we need to look carefully at how best to do it. The integrity and the spread of the Northern franchise is probably the foundation for the strongest alliance in that area.

[Alison McGovern (Wirral South) (Lab)]

The Secretary of State has mentioned South West Trains and how some of this integration is already in place in our network. So either we are talking about that, in which case this is not really a change, or this is the predecessor to a privatisation which will go badly—which is it?

[Chris Grayling]

It could just be that we have had some tentative steps in this direction that have shown early signs of promise and that we think we should pursue much more seriously—it could just be that.

[James Cleverly (Braintree) (Con)]

Commuters on the Braintree to Liverpool Street line suffer cancellations and delays far too regularly. I welcome the commitment to new rolling stock under the new franchise, but does my right hon. Friend agree that the bringing together of the TOCs and Network Rail will mean that there can be no excuses, be they about rolling stock, signalling or points, to further delay the commuters in my constituency?

[Chris Grayling]

I agree; what the public want is to know that someone is in charge. The aim of all this is to ensure that someone is in charge. Things will go wrong and there will be problems—that is unavoidable in a congested rail system—but we all want to know that there is a joined-up team trying to solve them. Of course, I hope that the new trains on my hon. Friend’s network, once they arrive and have bedded in, will deliver much better reliability than the existing ones.

[Mr Clive Betts (Sheffield South East) (Lab)]

Will this new arrangement have any impact on future investment decisions? I note that the east midlands franchise is to be one of the first considered for this new arrangement, so how does that impact on possible electrification there? A scheme was committed to and then paused, and then unpaused and recommitted to. Now it appears to be neither paused nor committed to. Will the Secretary of State explain the impact on that of these arrangements?

[Chris Grayling]

There is no impact; as I have said in the House before, we are proceeding with the next stage of electrification to Corby. We are looking at how we deliver service improvements to Sheffield by 2020, with improved journey times, faster tracks and the remodelling of key places such as Derby station, and I am looking actively at how we provide the best train fleet for the future.

[Iain Stewart (Milton Keynes South) (Con)]

I have been campaigning for the reopening of the east-west rail line for many years, so may I thank my right hon. Friend for this early Christmas present? Will he assure me that the new body will work closely with the National Infrastructure Commission on unlocking the economic potential of the Oxford to Cambridge corridor through Milton Keynes? Do we have an updated likely date for the opening of the line?

[Chris Grayling]

We will work with the National Infrastructure Commission, and we will also work closely with the local authorities that have been involved in helping to develop the project. I will not give my hon. Friend a date, but I would say that one reason for doing this is that I want to accelerate the process. I look at the pipeline of projects that Network Rail has, and I do not want this project to disappear into the middle of the next decade; I want us to start real improvement works quickly. We have money from the autumn statement to start some of that work around the intersection with HS2, but I just want to make this project happen quickly. We have to demonstrate sometimes in this country that we can get on with things.

[Albert Owen (Ynys Môn) (Lab)]

My constituency and the north Wales line are covered by two major franchises, Wales and borders, and west coast; by two Governments, the Welsh Government and the UK Government; and by Network Rail. In future, under the Secretary of State’s plans, who would be responsible for safety? Has he spoken to the Welsh Government about that?

[Chris Grayling]

Today’s announcement is predominantly about England, because, as the hon. Gentleman knows, the Welsh Government are taking the lead in designing the franchise. I know that they have sympathy with this view, because they are pathfinders at the moment in securing bids from integrated consortiums for the proposed Cardiff metro service, but I will discuss this with the Welsh Government, as I have regular conversations with them. I hope that they may want to build on some of the things we are seeking to do in England.

[Robert Neill (Bromley and Chislehurst) (Con)]

The Secretary of State’s decision to reintegrate train and track, where appropriate, is sensible. Does he accept, however, that my constituents will regard his failure to remove the London metro services from the wholly discredited Southeastern franchise as a complete cop-out and failure, and that it makes sense at all, as far as rail users in my constituency or I am concerned?

[Chris Grayling]

I know that my hon. Friend feels passionately about this, but I do not agree with him. We will have the opportunity, between London, my Department and Kent, to design an improved franchise for the future. What I had to decide was whether the benefits set out in the Mayor’s business plan, which did not involve increases in capacity on my hon. Friend’s local routes into London, and the incremental improvements that Transport for London claimed it might be able to deliver were really worth putting his railway line through the biggest restructuring since the 1920s. My judgment is that we can achieve the benefits that TfL is arguing for through partnership, rather than through massive reorganisation, and that is my aim.

[Tom Brake (Carshalton and Wallington) (LD)]

What evaluation has there been of the time and cost benefits of doing the Oxford to Cambridge line in the way that the Secretary of State proposes, as opposed to having Network Rail do it? Does he envisage other projects being run in this way? If this is about looking for different ways of doing things, will he consider allowing the public sector to bid for train franchises?

[Chris Grayling]

As the right hon. Gentleman will be aware from the autumn statement, the Oxford-Cambridge corridor is a much broader project than just a railway line. It is seen as a key development corridor by the Treasury and the National Infrastructure Commission. We also need to look at the construction of improved road links between the two, so it is much more complicated than simply saying, “It’s a railway line.” However, we need to build a model that secures developer contributions on the route. It is good for our rail sector to have a bit of contestability. The assumption that Network Rail should always do everything does not give us any benchmarks to judge whether someone else can do it better. I want to use this as an opportunity, in a way that does not affect the rest of the network, to test the way that we are doing things, and to see whether we can do them quicker and better.

[Nusrat Ghani (Wealden) (Con)]

Passengers in my constituency just want a better service—one that matches the train timetable—and this is something that I have raised with the Secretary of State on a number of occasions. I agree that both track and train teams need to work together to focus on delivering a better service, especially on the Upfield line. What improvements will my constituents see with this new initiative?

[Chris Grayling]

One thing I asked Chris Gibb to do around the Southern route was to start to create the kind of partnership that I have described today. My early experience on this route—and the early experience of the Under-Secretary of State for Transport, my hon. Friend the Member for Blackpool North and Cleveleys (Paul Maynard)—was that Network Rail and the train operator were not working closely together and not addressing problems together. Sadly, the real challenge in the constituency of my hon. Friend the Member for Wealden (Nusrat Ghani) is the ongoing industrial action, which is utterly pointless. No one is losing their job, and no one is losing any money; this is all about adopting new technologies and ways of working that are already custom and practice on the same routes. The action is a tragedy, and it is unacceptable. I again call on the unions to go back to work.

[Ms Karen Buck (Westminster North) (Lab)]

When Transport for London took over London Overground, it went from being the worst performing rail line in the country to the best performing rail line. That was why the Government signed an agreement with TfL and the London government in March for TfL to take over Southeastern when the franchise expires in 2018. What exactly has happened to make the Government break their promise to Londoners?

[Chris Grayling]

I looked very carefully at this matter. The hon. Lady needs to understand the difference between London Overground and the rest of the suburban routes. London Overground has provided a good service, which is run by Arriva—part of the German railways—and was co-run initially by MTR, the Hong Kong metro system. It is a franchise operator, like the rest. Having read the Mayor’s business case carefully, and having considered the level of change required to split the franchise in half—it would be the biggest operating change on this railway since the 1920s—and the potential disruption to passengers over a period of time, I thought, rightly or wrongly, that we could deliver the service improvement that TfL was talking about by forging a partnership. Crucially, we would involve Kent, because this is not a London issue; as this railway runs from London to the south coast, we cannot think of the railway system just in terms of London. Very many passengers and representatives in this House from further afield would take a very different view from her on what will work for the railway line.

[Michael Fabricant (Lichfield) (Con)]

May I welcome the Secretary of State’s pragmatic approach to this problem? We on the Conservative Benches believe in devolution and in providing different solutions depending on the circumstances. The west coast main line is working at almost 100% capacity. Will he explain to my constituents how London Midland, Virgin and Network Rail on the west coast main line will work better together through his proposals?

[Chris Grayling]

There are two issues here. Clearly, there is logic, for the midlands and the north, in having a really joined-up relationship between Network Rail and the local train operator. Of course there will be services, such as Virgin’s west coast main line and the CrossCountry service, that cross boundaries. We must preserve the existing regulatory framework so that those services are not affected by this. My hon. Friend talked about devolution; what I am talking about for London is exactly the same model that we have adopted for transport in the north and the midlands of partnership and of shaping franchises. Local designer franchises have played a big part in the north in delivering what is genuinely thought to be a great new franchise structure that will bring real improvements for people across the north of England.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

Just a couple of weeks after the autumn statement, which was supposed to herald new investment in infrastructure, the new Secretary of State has given the game away with today’s announcement that the new rail line between Oxford and Cambridge will be built with private investment, so his true colours are shining through. Let me take him back to his comments about the success of ScotRail Alliance and ask him this: if it is working so well now, would it not work even better if we removed more interfaces and fully devolved Network Rail in Scotland to the Scottish Government?

[Chris Grayling]

The hon. Gentleman talks about investment and true colours. My view is this: the public sector is already putting a vast amount of investment into the railways. I support that, and I will get as much investment as I possibly can for our transport system, but there is no harm in also trying to do more by supplementing that with private finance. That may be an ideological division between us, but I cannot see how our transport system loses by having some private finance alongside the huge amounts of public finance already going into the sector.

[Suella Fernandes (Fareham) (Con)]

Network Rail recently carried out upgrades worth £3 million on the line running through Fareham in my constituency. Does the Secretary of State agree that this announcement will mean a greater focus on passengers? There are still so many commuters from Fareham who struggle because of the troubles with Southern rail. A more joined-up and co-ordinated approach will be a step in the right direction towards ensuring that commuters have better journeys to work.

[Chris Grayling]

Three things need to happen to deal with the issues on Southern. The first is that we need much more joined-up working. Secondly, we will have to put more money into the Southern infrastructure, which is clearly under great stress. It is a very intensively used railway, and not enough has been spent on it over the years. Above all, we just need to get the workforce back to work. The bizarre thing is that the 10-coach train that I often take to Victoria in the morning has a driver and no guard, and it has been like that for years. Why on earth are the drivers and the guards on Southern putting the passengers through such enormous distress when no one is in danger of losing their job? It is shocking. I would like to hear one word of condemnation from the Labour party. Do we ever hear any condemnation of its union paymasters? The answer is no, not for a moment.

[Heidi Alexander (Lewisham East) (Lab)]

When Zac Goldsmith was standing as the Conservative candidate for Mayor of London, the Department for Transport was all for the idea of devolving responsibility for letting Southeastern’s franchise to TfL, but now that he has gone, the promise seems to have gone as well. Why are the Government jettisoning the practical improvements that could have been associated with devolution in favour of this political experiment?

[Chris Grayling]

The hon. Lady talks about political experiments; a political experiment would be implementing a business plan that I did not judge delivered substantial improvements to passengers, and that involved the biggest shake-up of the railways in the south-east since the 1920s. That is a risk that we do not need to take. We can deliver improvements through partnership, but we must remember that that partnership is not just about London; it is about Kent. It is a partnership that involves passengers on different parts of the routes. We need to design a franchise structure that delivers improvements for everyone.

[Mr Philip Hollobone (Kettering) (Con)]

Passengers on the diesel-operated East Midlands Trains franchise from London to Kettering, who already experience some of the most expensive fares per mile in the country, often have delays to their service, not because of anything that East Midlands Trains has done, but because of Network Rail problems with the overhead lines coming out of St Pancras for the Thameslink service. That often happens at Luton and Bedford as well. Will the Secretary of State ensure that East Midlands Trains, Thameslink trains and Network Rail are among the first to set up these joint operating arrangements, because that would be greatly welcomed by my Kettering constituents?

[Chris Grayling]

My hon. Friend is absolutely right, and that will be the case; that is one of the franchises that is coming up to be let. Big improvements are needed on that route. One of the other things that is unsatisfactory about the service for his constituents in Kettering is that in the mornings, they have to pile on to crammed inter-city trains from much further north in the east midlands. What we aim to deliver by 2020 is a better inter-city service and, for the first time, a proper dedicated commuter service to people from Corby, Kettering, Wellingborough and further south.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

From what I can gather, integration is at the heart of what the Secretary of State is endeavouring to achieve. With that in mind, now that the UK Government are devolving responsibilities for the Welsh franchise to Wales, is it not logical to devolve responsibility for the Welsh network?

[Chris Grayling]

I need to correct the hon. Gentleman on that: we are not devolving responsibility for the whole Welsh franchise as he describes; we are doing so in part. I have said to the Welsh Government that I am happy with their taking control of the Welsh valleys lines, with a view to developing the metro system that they hope to put into service, but the Welsh franchise is not purely Welsh; it runs through large parts of England as well. We cannot have a situation where we, the Government in Westminster, give up control over services in England to the Welsh Government without checks and balances. That is not going to happen.

[Henry Smith (Crawley) (Con)]

I welcome my right hon. Friend’s announcement today of greater alignment between track and train operators. It seems that in the past fortnight or so Southern and Thameslink passengers have suffered a lot of broken rail reports—almost more reports in that period than in the last year. How can the new model help to address that situation?

[Chris Grayling]

The incidence of broken rails is a worrying coincidence, to put it mildly. I am concerned about the number of infrastructure breakdowns in recent weeks. Passengers blame the train company, but often—recently, more often than not—it is an infrastructure problem. That route is suffering intensely from low-level industrial action on non-strike days, and effectively a work to rule has been in force on different parts of that railway for months, which is adding to the intense pressure. I wish the unions would just accept that their members are not losing as a result of the change. They have more job security and better pay than a lot of people in the south-east, and they should get back to work and do the job they need to do for their passengers.

[Andy Slaughter (Hammersmith) (Lab)]

The travelling public support devolution, as do a number of Conservative MPs, council leaders and Assembly Members, and indeed as the Conservative Government did when they signed the joint prospectus with the previous Mayor of London. Is it not just a narrow, petty, political point that the right hon. Gentleman does not want to devolve to a Labour Mayor, who would provide more frequent trains, fewer delays and cancellations, more staff at stations and frozen fares?

[Chris Grayling]

This is the problem with the proposition. The hon. Gentleman says that more frequent trains would be provided, but the Mayor’s business plan did not provide more frequent trains. It provided no extra capacity in peak hours into the stations that serve the Southeastern route, and it would have involved the biggest reorganisation of those routes since the 1920s. My judgment is that, as it does not deliver the more frequent trains the hon. Gentleman describes, we should design the franchise through partnership, rather than upheaval.

[Jeremy Quin (Horsham) (Con)]

As the Secretary of State is well aware, there are appalling problems on Southern rail, which have been going on for a significant period and made worse by the apparent inability of Network Rail and Govia Thameslink Railway to work together. May I welcome his work with Chris Gibb and his pragmatic approach both to that and to the unions?

[Chris Grayling]

I appreciate my hon. Friend’s comments. One of the breakdowns last week was caused by a piece of equipment being left behind from engineering work being done to sort out the problems in the Balcombe tunnel, which contribute to the unreliability on that network. Some of the money I announced in September is now being spent operationally on the ground. It is frustrating when it has an unfortunate accidental wrong effect.

[Nick Smith (Blaenau Gwent) (Lab)]

Can the Secretary of State tell us when the electrification work between Cardiff and Swansea will be finished?

[Chris Grayling]

As I have said to the hon. Gentleman before, I make no bones about my unhappiness with the progress of Great Western electrification, which has not been anything like what I had hoped for. My policy right now is to deliver for him the new trains and improved journey times that will result from where we have got to so far, and where we hope we will get to soon in the electrification programme. He knows that what will make the biggest different to Swansea is fast new trains to London.

[Nigel Mills (Amber Valley) (Con)]

What are the implications of the proposed partnership on the east midlands franchise for smaller capital schemes such as the one for level access at Alfreton station, which was scandalously delayed by Network Rail last week?

[Chris Grayling]

My hon. Friend will know that where more enlightened train operators have invested and made improvements, it has paid dividends for them—Chiltern Railways is the obvious example. I hope that with more autonomy for the Network Rail team on the ground and autonomy for the private sector operators, they will look together at small schemes that will make a real difference to passengers and can be afforded within local budgets.

[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

Proposals to devolve rail services in London were championed by the Secretary of State’s predecessor, were underpinned by a solid business case, had cross-party support inside and outside London and, most important, were incredibly popular among passengers in London and Kent, who suffer daily at the hands of Southeastern and its unreliable and overcrowded services. Does the Secretary of State accept that his decision to take the proposal off the table today will be seen by those passengers as a betrayal of the hopes and expectations that were raised earlier this year by the Government?

[Chris Grayling]

No, I do not accept that. As I keep saying, the business plan submitted by the Mayor did not deliver extra capacity. I have invited Transport for London and Kent County Council to work alongside us on designing a franchise that maximises performance, takes advantage of any best practice we can learn from, and works for London and for Kent. Both are important.

[Tom Pursglove (Corby) (Con)]

People in Corby and east Northamptonshire are delighted with the Government’s commitment to electrification of the midland main line and pleased with the track upgrades in recent weeks. As part of the reletting of the franchise, they would like more trains running northbound and southbound through Corby. What benefit does my right hon. Friend envisage this greater co-operation having, in terms of responding most effectively to local concern and demand?

[Chris Grayling]

We know that often on the railways, as on the roads, it is the small things that make a real difference. I hope that with decentralisation of Network Rail into a route-based structure, the autonomous local managing directors who have their own budgets will be much better placed to apply small amounts of money to small schemes that make a material difference to passengers. I believe that the approach we propose will make that more likely. There is a real opportunity for the east midlands to be early beneficiaries of this approach.

[Madam Deputy Speaker (Mrs Eleanor Laing)]

The prize for patience and perseverance goes to Ian Lucas.

[Ian C. Lucas (Wrexham) (Lab)]

Thank you, Madam Deputy Speaker.

Transport for London and Merseyrail are successful vertically integrated train companies. Why, if we want more integration, do we not apply their successful model, which attracts public and private investment, to the rest of our railway network?

[Chris Grayling]

I hate to disabuse the hon. Gentleman, but Merseyrail is not a vertically integrated train operator. Indeed, I have discussed with Merseyrail whether it wants to take control of its tracks, and so far it has been indicated to me, at least by the Mayor of Liverpool, that he does not particularly want to. I would be happy if Merseyrail took control of its tracks. It has long had the opportunity to become an integrated train operator, but right now, it is not.

Rail Update

Lord Grayling Excerpts

Tuesday 6th December 2016 Written Statements

[The Secretary of State for Transport (Chris Grayling)]

Britain’s railways are crucial to our economic future, and we have seen significant growth in passenger numbers in the 20 years since privatisation. This growth brings challenges, and the impact of disruption can be immediate, significant and wide-ranging.

Our railways need to adapt and change in order to be able to cope with the growth that they have already experienced, and that which lies ahead. We are spending huge amounts trying to tackle the challenge—with new and longer trains and more capacity being introduced across the country. The Shaw report made a series of recommendations for change, including that Network Rail devolve responsibility to the route level. I support the principles of the Shaw report, and I support Network Rail’s reform programme, but there is much more to do.

I intend to press ahead with a recommendation put to the Department five years ago by Sir Roy McNulty, when he reported to Philip Hammond on how to make the railways run better and more cost-effectively. I will do this initially at an operational level. In order for all those involved to be incentivised to deliver the best possible service for the passenger, I expect the new franchises—starting with South Eastern and East Midlands—to have integrated operating teams between train services and infrastructure. I will also be inviting Transport for London (TfL) to be more closely involved in developing the next South Eastern franchise, through seconding a TfL representative to the franchise specification team.

We will continue to develop the model for greater alignment of track and train as further franchises are renewed—including the option of joint ventures. In the meantime, my Department is also publishing an update to the rail franchising schedule which I am placing in the Libraries of both Houses.

I also want to bring new skills into the challenge of upgrading our railways. I will begin by looking at the reopening of the link from Oxford to Cambridge, to support a range of opportunities including housing, science, technology and innovation. I am going to establish East West Rail as a new and separate organisation, to accelerate the permissions needed to reopen the route, and to secure private sector involvement to design, build and operate the route as an integrated organisation. This East West Rail organisation will be established early in the new year and chaired by the former Chief Executive of Chiltern Rail, Rob Brighouse.

Along with reform of the investment planning process to take better account of the needs of passengers and freight shippers, and extensive work across the industry to improve skills and diversity, these reforms will set the railway on a firmer footing for the future. We can and we will make sure our rail network plays its part in making this a country that works for everyone. I will bring forward a new strategy for rail in due course which will provide greater detail on our plans.

[HCWS322]

Rail Update - Southern

Lord Grayling Excerpts

Friday 2nd December 2016 Written Statements

[The Secretary of State for Transport (Chris Grayling)]

My Department has previously announced that ‘Delay Repay 15’ will be introduced first on the Govia Thameslink Railway (GTR) franchise, and this will be available to customers from 11 December 2016. Passengers will be entitled to claim compensation if their train is delayed by 15 minutes or more, rather than 30 minutes as is now the case. This is recognised as one of the most generous compensation schemes in Europe, and this change means an even better deal for passengers. ‘Delay Repay 15’ will be included in the specification for all new franchises in future.

Southern passengers have suffered from unprecedented and sustained disruption to their journeys during 2016 through a combination of factors, including RMT industrial action, track and signal failures, and operator poor performance. In recognition of this unprecedented disruption, passengers will be able to claim one payment against their 2016 season tickets from early next year. This one-off compensation scheme recognises that passengers have suffered, and demonstrates that the Government are on their side. This will be administered by GTR.

Passengers with a Brighton to London annual season ticket, for example, will get £371 back. Quarterly, regular monthly and weekly season ticket holders will also qualify for a one-off compensation payment.

Annual, quarterly, monthly and weekly season ticket holders using any Southern routes will be able to claim through the following process:

In early January 2017 Southern will contact all customers on its database it believes qualify for a refund to confirm the amount due and the method of payment.

Pre-identified customers will need to login to a web portal to provide bank details, credit card details or web account details.

Customers do not need to contact Southern directly at this stage.

After customers who have been pre-identified have been contacted a web portal will be made available allowing:

Pre-identified customers to confirm the method of payment they wish to use, and;

customers who believe they qualify to provide details for Southern to check and, if appropriate, make payment

[HCWS307]

EU Transport Council

Lord Grayling Excerpts

Tuesday 29th November 2016 Written Statements

[The Secretary of State for Transport (Chris Grayling)]

I will attend the only Transport Council under the Slovakian presidency (the presidency), taking place in Brussels on Thursday 1 December.

The presidency is aiming for a general approach on the proposed regulation on common rules in the field of civil aviation safety and establishing a European Union Aviation Safety Agency. The proposed general approach embodies the principle of proportionality and encourages the use of performance based regulations. It also makes small but appropriate extensions to the scope of the European Aviation Safety Agency’s responsibilities.

The presidency is also aiming for general approaches on two proposals aimed to simplifying and streamlining existing passenger ship safety legislation.

The first of these is an amending directive on safety rules and standards for passenger ships. This directive sets harmonised safety standards for seagoing passenger ships operating on domestic routes throughout the UK, and the proposed amendments look to simplify the current legislation. In particular, this deregulatory approach proposes that standards for passenger ships below 24 metres are better suited to regulation at national level.

The second is a proposal for a directive on a system of inspections for the safe operation of ro-ro ferry and high-speed passenger craft in regular service. The proposed revision updates, clarifies and simplifies the existing survey (inspection) requirements for ro-ro ferries and high-speed passenger craft, while maintaining the same level of safety and key delivery mechanisms.

There will be a progress report on a related proposal to amend two directives; one on the registration of persons sailing on board passenger ships operating to or from ports of the member states of the community, and one on reporting formalities for ships arriving in and/or departing from ports of the member states. Negotiations are at an early stage, and the presidency’s progress report summarises the discussions so far. Discussions on this proposal will continue during the forthcoming Maltese presidency in 2017.

The presidency has proposed a policy debate on the extension of the European fund for strategic investments (EFSI) and connecting europe facility (CEF) blending, which provides further funding for EFSI. The proposal will continue to enhance the financial case for projects and value for money from the EU budgets.

Under Any Other Business, the Commission will provide an update on the outcome of the 39th Assembly of the International Civil Aviation Organisation held in September and October 2016, combined with the latest developments in the International Maritime Organisation. The Commission will also provide information on the state of play on security in the transport sector, its planned package of road initiatives, road safety, developments in EU-type approval legislation and the progress made on the implication of the ‘emissions irregularities’. The Commission will update on the state of play on GALILEO, present its European strategy for low emission mobility, and provide information on its initiative on “Women in Transport”. The Cyprus delegation will provide information on the draft common aviation area agreement between the Republic of Turkey and the European Union and its member states. The Dutch delegation will then update the Council on co-operation in the field of connected and automated driving. Finally, the Maltese delegation will inform the Council on the work programme for their forthcoming presidency.

[HCWS290]

Roads Funding

Lord Grayling Excerpts

Monday 28th November 2016 Written Statements

[The Secretary of State for Transport (Chris Grayling)]

Following the autumn statement on 23 November, I am today setting out further details of road investment.

This new funding of £1.3 billion over this Parliament will help support infrastructure projects on roads, with £1.1 billion for the local road network and £220 million to relieve congestion on the strategic road network.

For the majority of the £1.1 billion there are three goals, and those seeking funding for improvements must fulfil at least one of those goals:

To ease congestion and provide upgrades on important national, regional or local routes;

To unlock economic and job creation opportunities; or

To enable the delivery of vital new housing developments to meet the needs of a generation of would-be home owners.

This is an essential part of ensuring we have a country which works for everyone.

To ensure that work can start quickly to help continue improvements to the country’s roads, £70 million of funding from the Pothole Action Fund will be allocated by formula to local highway authorities in 2017-18. This funding is on top of the £6 billion the Government are already allocating to councils in England up to 2021 to help improve the condition of the local road network.

I am also announcing funding for further development of business cases for six schemes from the large local major projects fund in addition to the six announced in the autumn statement, as well as approval to start construction of the Lincoln Eastern bypass.

The six schemes included in the autumn statement were:

Suffolk Energy Gateway new road;

A1079/A164 Jocks Lodge Junction;

Shrewsbury North West Relief Road;

Tees Valley East-West connections;

Sheffield Mass Transit Scheme;

Warrington Waterfront Western link.



A further six schemes will receive funding to develop business cases:

Sheffield City Region Innovation Corridor;

Manchester Metrolink airport extension to Terminal 2;

Melton Mowbray Eastern Distributor Road;

New Tees Crossing;

A500 Dualling (Cheshire);

South Coventry Link Road.

This means that development and feasibility work can proceed to the next stage. It does not mean every scheme is certain to go ahead and it remains a competitive process. However, many of these will be among the next set of projects that we build in this country.

Following the confirmation of the National Roads Fund, we are publishing reports on five strategic studies into major improvements on our national road network. On the back of these, the Government are committing to taking forward major improvements at three points on the national network:

Upgrading the A66 to dual carriageway, creating the first new all-dual trans-Pennine link since 1971;

Improving the M60 around Manchester—the second busiest road in the country;

Building a new Oxford-Cambridge expressway, to link up three of England’s fastest growing cities.

Two further studies, into further upgrading of the A1 in the east of England and building a trans-Pennine tunnel, are also reporting. Further economic analysis is to follow, with particular reference to emerging housing plans, before taking decisions on next steps. A sixth study, on the M25 South West Quadrant, will report in 2017.

In addition to bringing forward major projects, we have also announced a £220 million package of smaller improvements, which will be quick to deliver and will tackle congestion in the here-and-now. This includes improvements to the A69, further enhancing trans-Pennine connectivity.

I am also announcing approval for the £95 million Lincoln Eastern bypass with a contribution from the Department for Transport of £50 million. This scheme will reduce congestion in the city centre and encourage planned housing growth in the area. Construction will start in the New Year.

In order to ensure that our road network is safer for all road users, £175 million of the additional funding for local roads will be used to upgrade some of England’s most dangerous roads, where the risk of fatal and serious collisions is highest. The Road Safety Foundation’s analysis of the safety performance of the country’s major road network highlights where investment should be targeted. Therefore, my Department will be inviting proposals from local authorities responsible for the 50 highest risk roads.

This demonstrates that the Government are serious about investing in the infrastructure the country needs to drive economic growth both locally and nationally and to ensure that all road users have a well maintained and safe network which is fit for the future.

Further information will be placed in the House Library setting out more detail and the breakdown of funding that the Department for Transport is allocating to local highway authorities for 2017-18.

It can also be viewed online at: www.parliament.uk.

[HCWS286]

Exiting the EU and Transport

Lord Grayling Excerpts

Wednesday 23rd November 2016 Commons Chamber

[The Secretary of State for Transport (Chris Grayling)]

I beg to move,

That this House has considered exiting the EU and transport.

If I may crave the indulgence of the House briefly, I would like to say a couple of words about the situation on the railways in the south-west. As you know, Mr Deputy Speaker, there has been considerable disruption as a result of storms, including line closures and very extensive delays. I can inform the House that following the flooding that closed the great western main line between Exeter and Tiverton, the line has now just reopened. The Barnstaple branch is due to reopen this afternoon. The Looe branch is still closed, but I hope it will reopen on Thursday. There was also disruption when the South West Trains route was closed. I am immensely grateful to all the staff at Network Rail. They sometimes get a hard time when things do not work, but they rally around when there are major incidents and deliver solutions quickly. I thank them all very much for their work.

[Johnny Mercer (Plymouth, Moor View) (Con)]

I thank the Secretary of State for speaking to the House about this matter because it is not good enough for the south-west to be cut off again, or to be the poor relation of the national rail network. The report by the Peninsula Rail Task Force that was presented yesterday must be the framework for a fair deal going forwards, so will he commit to doing everything in his power to deliver on this piece of work and to make sure that Network Rail delivers for my constituents?

[Chris Grayling]

I absolutely understand the importance of the task ahead of us. The report, which I have read carefully, shares my view that the No. 1 priority is the sea wall and the cliffs at Dawlish. My hon. Friend will also be aware that last Thursday I announced—this was also in today’s autumn statement—the provision of £10 million for the next stage of the project. I am committed, as is the Chancellor, to making sure that it happens. It is a strategically important project for our nation—the south-west cannot be cut off via its principal railway routes—so I assure him that we will move ahead expeditiously with it.

[Kevin Foster (Torbay) (Con)]

I thank the Secretary of State for his comments and join him in thanking the Network Rail staff who turned the situation from that of two days ago, when there were literally hanging tracks, to one in which trains can run again. I am pleased that the Chancellor today described the £10 million of funding as the first step in this programme, and I thank the Secretary of State for his personal interest in this issue and his commitment to sorting out the issues with our rail infrastructure once and for all.

[Chris Grayling]

This absolutely needs to be done, and we will move ahead as quickly as we can. Following the incident on the Cowley bridge this week, flood protection works are due to start there imminently. It is a shame that the works have not quite started yet, but they will be starting very shortly, and I hope that they will deal with that issue so that such an incident cannot happen again.

Moving to the main business, the autumn statement demonstrates the Government’s commitment to modern infrastructure that can serve the public and support a dynamic economy. Our forthcoming departure from the EU represents a huge opportunity for Britain to carve out a new role in the world and to be a stronger and more ambitious country—a country that is better able to shape its own future in the world and a country that is outward-looking and open for business. That was what I campaigned for in the summer, and it is what the Government will deliver.

Business is starting to share this optimism. Since the referendum, several companies in the transport sector have announced significant investment in the UK. Nissan’s commitment of investment is fantastic news for the British economy, the north-east and the car sector, particularly as it is not just maintaining capacity at the plant, but expanding it. In August, Bombardier received an order for 665 new vehicles from Greater Anglia, which will secure jobs and skills in Derby. When I spoke to the international head of Bombardier’s rail division about a month ago, he said that such was the quality of the work in the UK, Derby was going to become a global hub for its rail business, which is another positive statement of commitment to this country.

Alstom has started work on developing a new site at Widnes, which will create 600 jobs along with, crucially, a training academy. The Spanish firm CAF has said it will now set up a train manufacturing plant in the UK, and Siemens, which manufactures rolling stock and other products in the UK, has committed itself to a continuing presence. Its chief executive said in July, “We’re here to stay.” Alongside Hitachi’s new rolling stock and manufacturing and assembly plant in Newton Aycliffe, which is creating 730 new jobs, this shows that we are becoming a centre for high-quality rolling stock manufacturing, so it is with good reason that I view the future with optimism as we approach negotiations on leaving the EU.

[Sir William Cash (Stone) (Con)]

While, of course, I entirely endorse the Secretary of State’s sentiment, there is an issue regarding British ports. It is a big issue, but I will not go into it now, as I am hoping to catch your eye, Mr Deputy Speaker. However, there are some serious questions still outstanding around qualified majority voting, as I am sure the Secretary of State knows.

[Chris Grayling]

I absolutely agree with my hon. Friend. He and I have discussed this matter in the past. The regulation coming out of the EU on ports is tailored to the particular structure of ports on the continent, but does not fit well with a private port sector such as ours. The opportunity to ensure that we have a regulatory framework that is right for the UK is one benefit that comes from leaving the EU.

[Robert Flello (Stoke-on-Trent South) (Lab)]

If between now and the great Act incorporating European legislation into UK law, as the first step towards unpicking things, the ports services directive comes into being—I am not sure how likely that is—would it not be incorporated straight into UK domestic legislation?

--- Later in debate ---

[Chris Grayling]

We have said very clearly that we will fulfil our legal duties while we are still members of the European Union, and that at the time of our leaving, it is our intention to transpose EU law into UK law. However, it is then for this Government and this House to decide what areas of regulation we want to keep and what areas we want to change. Having listened to the representations of Members about the ports directive, I suspect that this House will want to return to this area.

[Mr Andrew Turner (Isle of Wight) (Con)]

How has this regulation, which to everyone’s great pleasure disappeared back in January, now reappeared? Why was it so popular that the House did not need to scrutinise it? Will my right hon. Friend tell me what amendments have been made to the regulation that now make it acceptable?

[Chris Grayling]

The first thing to say is that no piece of European legislation passes through this House unscrutinised, particularly thanks to the assiduous work of my hon. Friend the Member for Stone (Sir William Cash). This is one area where the Government intend that the House has the opportunity of proper scrutiny. It is very much my hope and belief, as I have said, that our decision to leave the European Union will ensure that in respect of ports, for which our model does not conform with that of the rest of Europe, we will have the opportunity to tailor something that is right for this country.

I want to focus on two particular areas, which will be the priorities for my Department in the coming months. At the top of the list is aviation. Our aviation industry is world class, and our airports service the third largest aviation network in the world. UK airlines have seized opportunities globally, including those offered by the European open skies agreement. I am focused on securing the right arrangements for the future so that our airlines can continue to thrive and our passengers have opportunities, choice and attractive prices. When I met the aviation industry, I found that one of its priorities was and remains the effective regulation of safety and air traffic management. That is also a priority for me as we approach the negotiations.

Our connections with Europe are, of course, important, but we need to widen our horizons, too, and we need to make sure that we have continuity for the aviation industry internationally. Leaving the EU gives us more freedom to make our own aviation agreements with other countries beyond Europe, and ensuring that we have that continuity when we leave is an imperative for me and my Department.

I have already had positive discussions with my current US opposite number about the arrangements that we will need after Brexit for the vitally important transatlantic routes. There will, of course, be a new counterpart in office in America in the new year, and I intend to reprise those discussions when the new US Transportation Secretary is in post. Both sides have an interest in reaching an early agreement and I am confident that we will achieve that.

Looking the other way, last month we signed a deal with China that will more than double the number of flights that are able to operate between our two countries, thereby boosting trade and tourism. This country is open for business and open to the rest of the world, and aviation has a big role to play in making that happen. Whether through new agreements or our support for a third runway at Heathrow, I will do whatever is necessary for our industry, businesses and the public. I shall have talks with other countries, such as Canada, where there is an interest in ensuring that we have good arrangements post-Brexit. There is a job to be done to make sure that that happens, but I am in absolutely no doubt that we will secure in good time and effectively the agreements that our aviation sector needs to continue to fly around the world and within the European Union. Not doing so is in no one’s interests. Many parts of the EU depend economically on the contribution made by British airlines flying to regional airports. It is in all our interests that that continues.

[Stephen Gethins (North East Fife) (SNP)]

Given that the Secretary of State campaigned for leave, will he tell us how much preparation regarding this issue the Government of which he was a member carried out before the referendum?

[Chris Grayling]

The hon. Gentleman mentions preparation, but the objective is very straightforward. It is in the interests of the different regions and countries of the European Union that we continue to trade and to have good transport links between us. I see no logical reason for anybody to stand in the way of that. We now have to work out what the best precise arrangements will be. When it comes to aviation, however, the objective is business as usual. That is what is in everyone’s interests.

[Mr Mark Hendrick (Preston) (Lab/Co-op)]

The Secretary of State refers to business as usual, but he will know that aviation emissions are now included in the EU emissions trading scheme. Is it his view that we should remain in a trading scheme once we leave the EU?

[Chris Grayling]

The world has moved on somewhat. The International Civil Aviation Organisation agreement that was reached in Montreal six weeks ago provides a global framework to tackle emissions in the aviation industry. All of us, both inside and outside the European Union, will be part of that as we ensure that the economies of the developed and the developing world can continue to benefit from improved aviation links while, at the same time, we meet our obligations to control carbon emissions.

The second area on which I am focusing is road haulage. We depend on road hauliers—without them, our shops would be empty and industry would grind to a halt. Our logistics industry does a first-class job in getting our goods to the right places, but the vast majority of lorries on the roads never leave the country. As we look to the future and to trade that does leave the country and crosses borders, there is one simple fact that we need to bear in mind. About 85% of the lorries operating between the United Kingdom and the continent belong to EU-owned businesses—international hauliers that are not based in this country.

The member states of the EU and the United Kingdom have a common interest in reaching an agreement. We need sensible arrangements for the future to allow goods to flow freely from and to the United Kingdom. We need to give UK hauliers a fair chance to win business and to be successful. We shall focus on that during the negotiations, ensuring that we achieve the right outcome for the international hauliers that serve this country and for UK hauliers as well. I am talking to all those who are involved in running our roads and the freight services that use them.

[Ian Paisley (North Antrim) (DUP)]

Will that include an aggressive look at freight charges for the movement of goods outside the United Kingdom to faraway markets? I understand that New Zealand, Australia and Canada have freight subsidies that allow them to cut the prices of freighted goods.

[Chris Grayling]

I am not necessarily a great fan of inappropriate subsidies, but I hope and believe that as we negotiate free trade agreements with countries around the world we shall create an environment in which trade and freight haulage are conducted on a level playing field, and that there are no artificial barriers that push up our costs and help others to reduce theirs. Above all, however, we benefit from a world in which trade flows freely. That is clearly in the commercial interests of European hauliers, especially hauliers from the Irish Republic. I am very aware that as we enter the negotiations, we have a particular duty of care to our friends in the Republic. We have a duty to seek to reach an agreement that will ensure that their trade, which frequently involves travel by road through the United Kingdom to other parts of Europe, can flow smoothly. It is in all our interests to ensure that we have sensible cross-border arrangements.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

The Secretary of State mentioned discussions with haulage companies. Is he discussing with them the fact that they currently rely on EU drivers, courtesy of licence harmonisation, and the fact that, even so, it is forecast that there will be a shortage of 40,000 HGV drivers by 2020? Is he having discussions about what the Government can do to plug that skills gap?

[Chris Grayling]

Absolutely. The task is within the remit of the Minister of State, Department for Transport, my right hon. Friend the Member for South Holland and The Deepings (Mr Hayes). Not only is he the Minister responsible for our strategic road network but, as a former skills Minister, he holds the skills portfolio in my Department, and I know that he is very exercised about this issue. Of course, with a managed system of migration, we shall be able to recruit skills internationally when we need them, but I want a new generation of young drivers. There is much that we can do to make the profession more attractive, and my right hon. Friend is working on that at this very moment.

I have talked about the potential for a more tailored regulatory framework for the ports sector after we have left the European Union. We have a thriving and competitive ports sector, strong international investment, and some first-class facilities. I believe that the sector will be an essential part of a nation that is focused on global trade, trading opportunities, and opening up trade links with other countries.

Our railway services through the channel tunnel link us with the continent, but apart from that Britain’s rail network is domestic. Although on day one after exit the rules will be the same as before, in future we shall be able to make our own decisions about changing those rules. We currently have a derogation from many of the EU standards for our existing railways. That is because many of them date back to Victorian times and were built to entirely different standards. That is not the case for new railways, so one example of the kind of challenge that we are dealing with in the construction of HS2 is the fact that European specifications for platform heights are inconsistent with flat access for disabled people on to trains. We have to address that as part of the development of HS2, but it is an example of how, freed from European Union regulation, we can make sure that we do a better job, in this case for disabled people, which I believe that Members on both sides of the House will think is the right thing to do.

I talked about the global opportunity for Britain, and across the transport sector I am determined not only to negotiate the best deal for Britain within Europe, but to find new opportunities for our transport sector around the world. We should support our industries as they sell their expertise and products and seek to win major contracts around the world. We have world-class expertise in this country in the automotive sector, aerospace, logistics, transport engineering, rolling stock manufacture and much more. We need to be confident in offering these services to the world, and we have every reason to be confident: we are doing some great things in this country at the moment, from the first-class work being done to deliver Crossrail in London to the high-quality automotive technology that is developing the new generation of autonomous and semi-autonomous vehicles.

[Nick Smith (Blaenau Gwent) (Lab)]

The Secretary of State talks about Crossrail. The infrastructure gap between London and the rest of the UK remains unbridged, so does he agree that the Cardiff-Swansea section of the great western railway electrification project must be delivered with UK Government funding as soon as possible?

[Chris Grayling]

As I said in the House the other day, I am not at all happy with the progress that has been made on the electrification of the great western main line so far. Actually, right now my priority is to get investment in better services into Swansea as soon as possible. The economy of Swansea and south Wales needs improved services, and that is my focus. I do not want to wait for the future for infrastructure projects; I want better services now. As we re-let the Great Western franchise, I am determined to see improved services to south Wales that provide a real boost to the economy in the areas that the hon. Gentleman and other Members for south Wales represent. Better transport links and improved services to south Wales and to the south-west are essential to making sure that we have a productive economy.

[Ben Howlett (Bath) (Con)]

One of the key hurdles facing a lot of railway companies is the European procurement rules. Has the Secretary of State had conversations with the Department for Exiting the European Union on the procurement opportunities that are available outside the EU?

[Chris Grayling]

Clearly, outside the EU, we have the opportunity to shape our own procurement rules. I do not want to be part of a Government who say that international firms are not welcome in the UK—that would be quite the wrong thing to do—but it is equally reasonable for us to say, for example, “If you’re coming to do business with us by being involved in the construction of HS2, we want you to leave a skills footprint in this country. We want apprenticeships and technical skills, and we want the engineers of the future to be trained and developed, and to be working on these projects so that they can carry on beyond them to build us further projects for the future.” That is our intention.

Let me be clear: Brexit is an unprecedented opportunity.

[Nick Smith]

I am very unhappy that the Secretary of State avoided my question about supporting the Cardiff-Swansea electrification, so I would like a better answer on that in the future, please. I am owed a letter from his ministerial colleague the hon. Member for Blackpool North and Cleveleys (Paul Maynard). Having said that, the Secretary of State did say he wanted to support an economic boost for south Wales, so will the UK Government be supporting the Cardiff metro plans, which are important for getting Blaenau Gwent working again?

[Chris Grayling]

Not only are we supporting the Cardiff metro plans and looking at how to deliver better services to the whole of south Wales—it cannot be just about Cardiff; it has to be about what happens to the west—but I will also be looking at whether we can provide better services to connect with the west of Wales and better services to Swansea. I hope that the hon. Gentleman will forgive me for saying it is not just about south Wales; it is also about how we deliver better services to north Wales. There is a tendency, particularly in the Administration in Cardiff, always to look to the south—there are important things happening there—but we as a Government have not forgotten that there are many different parts of Wales, and the commitment to the north is also very much in my in-tray.

Let me be clear that Brexit represents an unprecedented opportunity to shape our own future, and we will make the most of that opportunity. We will get out into the world and do business right across the globe, and at home we will continue to build a world-class transport system for this country.

[Stephen Gethins]

Will the Secretary of State tell us what meetings he has had with the European Transport Commissioner, given the importance that that relationship will have over the next little while? Will he also tell us what was discussed in those meetings?

[Chris Grayling]

I have already had one meeting with the Commissioner, when we were in Japan, and I will see her again next week at the Transport Council. We will work out the best way to take forward negotiations in due course, but we have had exploratory discussions. Those discussions have been constructive, and I look forward to having further such discussions with her.

I have to be mindful of the need to ensure that we have a structure for the future that will create stability and opportunity for our aviation and haulage sectors, and that takes advantage of the potential freedoms that leaving the European Union will offer this country’s transport sector. We fully intend to take advantage of that opportunity.

--- Later in debate ---

[Andy McDonald]

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

[Chris Grayling]

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

[Andy McDonald]

I am delighted to hear it.

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

--- Later in debate ---

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

We have heard from the Secretary of State for Transport that we should have confidence; he has reassured us that we should have optimism, but, of course, we have heard no details.

The impact of Brexit on the different modes of transport—aviation, maritime and road haulage—will be immense, but its main effect will be on all the people in our communities, with rising costs for goods and mobility. There are also those who want to do business with us or to visit us as tourists. It is wrong for Ministers not to have a full explanation of how exiting the EU will impact on businesses, consumers and passengers.

Nobody doubts that we are facing stormy seas, yet instead of a plan we are told by the Foreign Secretary that Brexit will be titanic. That is scary enough, but time after time, in terms of plans and answers, we find it is just an empty vessel. The Government’s model is less a ship of state and more like the Mary Celeste. So let us see the Brexit rhetoric cast overboard, and let us hear some definitive answers.

People will be affected; they and our businesses deserve to know what the plan is. This failure to provide a plan is simply a plan for failure. People face additional journeys for connections, more expensive tickets, fewer rights to challenge delays and cancellations, additional insurance costs and long queues at border controls. When they call home, their calls could cost more because they will not have mobile phone roaming protection.

The Chancellor said today that he wanted the UK to be the No. 1 destination for business. Well, how are people going to get here? Let us start with aviation. Leaving the EU could restrict operations by UK airlines in Europe, and by EU airlines in the UK, leaving our constituents and visitors to the UK paying the price for Brexit through higher fares. Analysis from the independent Oxera economists states that such restrictions could lead to UK passengers’ airfares rising by 15% to 30%.

As an MP from the highlands, and as chair of the regional airports all-party parliamentary group, I am also extremely concerned about the increased cost pressure on regional airports. These airports have thrived with the increase in low-cost airlines, and the advent of cheap short-haul flights across Europe owes a large part of its success to the EU. As easyJet said:

“the single aviation area gives airlines freedom to fly across Europe and since its introduction passengers have seen fares fall by around 40 per cent”.

Without that agreement, fares will inevitably be higher.

[Chris Grayling]

Earlier this week, I met the proprietor of AirAsia, who has built an extraordinarily successful low-cost airline across south-east Asia. Countries there are not in a European Union-type institution. Can the hon. Gentleman explain to me and to the House why it is not possible to have a low-cost aviation set-up in Europe with us outside the European Union, but it is possible to have such a set-up in a part of the world where there is no such body as the European Union?

[Drew Hendry]

Let me answer that by giving the right hon. Gentleman the words of easyJet itself. EasyJet is currently registered in the UK and can fly largely without restriction from the UK to other member states—France and Germany, for example—and wholly, in terms of the domestic market, within countries such as Italy. EasyJet is now setting up a separate operation outwith the UK to ensure that it can continue to fly without restrictions after the UK leaves the EU. As its chief executive officer, Carolyn McCall, said, current EU flying rights might have to be renegotiated, and the new company will ensure easyJet can operate within the EU. She added:

“We are not saying there will be no agreement. We just don’t know the shape or form. We don’t have the luxury of waiting. But we have to take control of our own future.”

That is in no small part due to the lack of clarity from the UK Government over what aviation agreement the UK will eventually come up with. The Secretary of State and his colleague the Secretary of State for Exiting the European Union have said:

“Market access remains a top priority, and we want to make sure we have liberal access to European aviation markets.”

Strikingly, however, there was no guarantee that the UK would stay within the open skies agreement. The UK Government need to explain to us now how this is going to work. When open skies was agreed back in 2008, the UK market was one of the key attractions for the United States. At the time, the UK accounted for a 40% share of the EU-US market. If the agreement ceases to apply, as was mentioned earlier, will the UK have to revert to the Bermuda II bilateral agreement, signed in 1946 and last amended in 1991?

--- Later in debate ---

[Drew Hendry]

No, I will make some progress.

What access arrangements will be in place? What is the plan for the millions of people connected with this industry? Will UK companies have access to a single European market, with no taxes or duties payable on goods?

There are a lot of potential uncertainties for UK road haulage companies as a result of Brexit, particularly in terms of employment, drivers’ hours rules, access to markets and border controls. Transporting a lorry load of goods from London to Milan in 1988 required 88 separate documents; the internal market replaced them all with a single piece of paper. In response to the balance of competences review, the Freight Transport Association said that the EU had created

“a market that logistics has served for nearly half a century”,

benefiting British businesses; the Road Haulage Association, similarly, felt that for its sector the overall judgment was a fine one. It said that

“‘competences in UK road transport are finely balanced in our sector. Although we have not got a 100% solution in terms of market access we have got the most of what we think the industry would want”.

That is largely a reference to cabotage, the practice whereby a haulier from the UK can carry goods between two other member states—for example, Spain and France. So, what is the plan?

[Chris Grayling]

rose—

[Drew Hendry]

I am happy to give way to hear the plan.

[Chris Grayling]

Will the hon. Gentleman tell the House, first, what proportion of cross-channel traffic is carried by UK hauliers as opposed to hauliers based elsewhere in the EU, and, secondly, the balance of cabotage carried out in the United Kingdom by European hauliers, and vice versa?

[Drew Hendry]

The Secretary of State is trying to make an argument similar to that made during the Brexit campaign about how the EU has to buy cars made here because there is a bigger market for them. That does not square with the facts of what is happening in the European market. For example, what will happen when there is a shortage of drivers in the road haulage industry, as at the moment many of them are EU nationals, supplying our road transport network? We have not heard the plan, and I heard nothing in the Secretary of State’s remarks today to say that there was a plan in this regard.

The EU single market has delivered significant economic and social benefits for Scotland. The four freedoms of the single market—freedom of movement of capital, of people, of goods and of services—have removed barriers to trade and opened Scotland to a market of more than 500 million people. The single market has also generated direct benefit, and there are now unanswered questions about funding. As of October 2016, some £350 million had been legally committed for transport funding, meaning a further £450 million is available as long as it is committed before the UK leaves the EU. Some £13 million of that went directly to Transport Scotland, with the agency being available to seek a further amount from the remaining £450 million. However, there has been not a peep from the UK Government or the Chancellor on whether the funds will be committed up to 2020. Will the UK Government seek to top up the funding to Scotland after we leave the EU?

I will conclude now, but there are many further issues relating to rail and bus networks, including vehicle standards and testing, disabled badges and a whole lot more. There are so many questions on transport in the light of Brexit that I think we will return to the subject again and again. Those questions are being asked not just by me or my hon. Friends, but by industry and the public. They deserve answers. They deserve “the plan”, but instead they see that, on issues relating to maritime, road or air, they have a UK Government who are all at sea, taking the road to nowhere, and booked on an expensive and uncomfortable flight from reality.

Oral Answers to Questions

Lord Grayling Excerpts

Thursday 17th November 2016 Commons Chamber

[Scott Mann (North Cornwall) (Con)]

4. What steps his Department is taking to invest in the railways in the south- west.

[The Secretary of State for Transport (Chris Grayling)]

We need to continue to improve transport and rail links in the south-west, and my No. 1 priority is to deal with resilience near the Dawlish sea wall and the Dawlish cliffs. The next stage of the project requires a further £10 million to continue to develop the programme and deal with the issue once and for all, and I can announce to the House today that that funding will be granted and the work will go ahead. That is an important part of ensuring that we protect the essential rail links to the south-west, and I hope that people there will see it as a commitment to making sure that they have a proper transport system for the future.

[Scott Mann (North Cornwall) (Con)]

That is fantastic news and it shows that this Government really are investing in the south-west. Given that resilience work, will they consider a potential branch line to Okehampton as part of the wider south-west rail package?

[Chris Grayling]

I pay tribute to my hon. Friend and, indeed, to all my south-west colleagues, who are vociferous champions of the need to make sure that we have the best possible transport links to the constituencies that they represent. I will be very happy to discuss with him the needs of his constituents in Cornwall and, in particular, the potential for improving links to Okehampton.

[Kerry McCarthy (Bristol East) (Lab)]

The National Audit Office’s verdict on the Great Western Railway electrification fiasco was absolutely damning. It described it as

“a case study in how not to manage a major programme.”

It is estimated that passenger growth on the line will be 81% over the five-year period leading up to 2018-19. Anyone who uses the line will know how overcrowded it is. What reassurances can the Secretary of State give that there will be an improvement in our area?

[Chris Grayling]

The hon. Lady will not be surprised to learn that I am not happy about the way in which the modernisation and electrification programme has been managed. The NAO report also said that, since 2015, my Department has had a much firmer grip on the programme. I am still not satisfied with the progress that is being made. New trains will, of course, be rolled out across the network sooner rather than later. I am committed to making sure that the project is delivered and that the improvements it brings will happen for passengers.

[Kevin Foster (Torbay) (Con)]

I welcome the Secretary of State’s announcement on the Dawlish line, given how vital it is in ensuring that my constituency actually has a train service. Does he agree that it was not acceptable for CrossCountry trains to bury in a lengthy timetable consultation document a proposal to axe virtually all of its direct services between the bay and the midlands and Manchester?

[Chris Grayling]

We have discussed the issue with my hon. Friend. When timetable changes are proposed, it is important that they are as transparent as possible, and I want the cross-country service to grow rather than shrink in future.

[Nick Smith (Blaenau Gwent) (Lab)]

19. The NAO says that the Government’s very poor implementation of the London and Bristol to Wales electrification project has wasted—wasted—£330 million of taxpayers’ money. With funding stretched, will the Government and the Secretary of State accept responsibility for putting the Cardiff, Swansea and south-west improvements at risk for the future?

[Chris Grayling]

My objective is to make sure that the programmes under way are delivered properly, with the benefits delivered as quickly as possible. As I said, I am not happy with what has happened so far. One great irony is that during the Labour party’s 13 years in power only 10 miles of railway line were electrified. The other is that at a time when Labour is demanding the nationalisation of the railways, these problems have arisen in the one bit of the railway in the public sector.

[Conor McGinn (St Helens North) (Lab)]

5. What steps he is taking to improve transport infrastructure in the north of England.

--- Later in debate ---

[Maria Caulfield (Lewes) (Con)]

7. What his policy is on improving rail infrastructure in Sussex.

[The Secretary of State for Transport (Chris Grayling)]

My hon. Friend will be aware that we are making a range of substantial investments on the rail network in Sussex, including in longer platforms on the Uckfield line, a new Thameslink depot and upgraded power systems. That said, I want to be clear that I am well aware of the frustrations felt by passengers in her constituency. Quite apart from the disgraceful and unwarranted industrial action that is taking place at the moment, one of the key issues is that this network is not reliable enough. I give her and her constituents an assurance that I am looking very hard at how to step up a programme of incremental improvements to stop the day-by-day breakdowns that are making the current issues much worse.

[Maria Caulfield]

I welcome the investment in infrastructure, which is causing 50% of the delays. Does the Secretary of State not agree that, in the long term, a second rail main line between Sussex and London is needed to increase rail capacity in the south-east and to improve journey times for my constituents?

[Chris Grayling]

I am well aware of the degree of campaigning behind the Brighton main line 2 concept. My hon. Friend the rail Minister and I have discussed that, and I am aware that a report has sat on the desk for much too long. I intend to make sure that it does not sit on the desk for very much longer.

[Mr Speaker]

Sticking to Sussex, I call Pat Glass.

[Pat Glass (North West Durham) (Lab)]

The Secretary of State will no doubt have seen the “Panorama” programme that was broadcast on 7 November that highlighted the daily hell faced by passengers, especially those using Southern rail on the line mentioned by the hon. Member for Lewes (Maria Caulfield). Is he content that Southern rail customers are facing this commuting hell every day, or will he act to do something about it?

[Chris Grayling]

No, I am not at all content. Of course, the biggest step that could be taken would be for the rail unions to call off their action so that we can deal with some of the underlying infrastructure problems, which I described a moment ago. One of the things I find sad is that, far from joining us in calling for the strikes to end so that we can improve the situation, Labour Members seem keener to line up with the militants rather than opposing them.

[Pat Glass]

Southern rail was a disgrace before the current industrial action, and it will continue to be a disgrace long after the current industrial action is complete and the dispute is settled. The Department for Transport sets the routes, allocates the franchises, dictates the number of trains that run and sets fare increases, so when will the Secretary of State stop pretending that this is nothing to do with him, stop blaming everybody else around him and act to stop the daily hell on this line?

[Chris Grayling]

I have every intention of addressing the issue and I am working as hard as I can to do so. I would tell Labour Members that figures published this morning show that, across our railways, far more—more than twice as many—problems arise as a result of infrastructure, which is in the public sector, than as a result of train operations, which are in the private sector. Their persistent arguments that nationalising would solve the problems are just plain wrong. We need to invest; interestingly, we, unlike the Labour party, are doing so.

[Crispin Blunt (Reigate) (Con)]

The utility of any rail infrastructure investment on the Brighton main line in Sussex will depend on the trains running effectively through Surrey. Will the Secretary of State undertake to look at proposals from people in my constituency about extra infrastructure investment in Surrey, alongside the Sussex proposals?

[Chris Grayling]

This is a Surrey, Sussex and south London problem, and we must look at the whole thing holistically. My hon. Friend will be aware that I have asked Chris Gibb, a senior rail executive, to look at the issues and to identify ways of addressing resilience problems. He has now put in place detailed plans, and some of that work has already started. For example, a joint team to control the railway on a day-by-day basis was put in place three weeks ago—at Three Bridges, one person will be in charge on a day-by-day basis—and individual infrastructure issues are now beginning to be addressed. I am determined that we do as much as we can, as fast as we can, to improve the resilience of the network.

[Philip Davies (Shipley) (Con)]

8. If he will ensure that trains on the proposed High Speed 3 route stop at Bradford.

--- Later in debate ---

[Ian Paisley (North Antrim) (DUP)]

13. What steps the Government are taking to ensure that air connectivity between Northern Ireland and London is improved by the proposed expansion of Heathrow airport.

[The Secretary of State for Transport (Chris Grayling)]

Heathrow airport expects to add six more domestic routes across the UK when the new runway opens in the middle of the next decade. This will strengthen existing domestic links to regions such as Northern Ireland, Scotland and the north of England, and allow the development of new connections to regions such as the south-west. We expect Heathrow to meet these pledges. We will ensure that the Government hold the airport to account; that is an obligation, not a desirable.

[Ian Paisley]

I thank the Secretary of State for that excellent answer, and for the hope and expectation contained therein. Is he, like me, taken aback by the EU’s decision to block a multimillion pound aid package to United Airlines, which has effectively removed one of our air carriers out of Northern Ireland? Will he investigate who lodged the complaint to the EU that has effectively destroyed this business in Northern Ireland?

[Chris Grayling]

I fear it probably will not tell us, but I agree with the hon. Gentleman that the decision was deeply unwelcome. My Department spent a fair amount of time working alongside the Northern Ireland Office and the Northern Ireland Executive on trying to make sure that we sustained this route for Northern Ireland. The loss of the route because of EU action is deeply unwelcome and precisely the kind of unnecessary decision from Brussels that led this country to vote to leave the European Union.

[Nigel Huddleston (Mid Worcestershire) (Con)]

Could air connectivity between Northern Ireland, Heathrow and other parts of England be improved by changes to air passenger duty, especially in response to the impending cut to APD in Scotland?

[Chris Grayling]

My right hon. Friend the Chancellor of the Exchequer is listening carefully to representations on this issue. The Scottish National party stood on a platform of getting rid of air passenger duty in Scotland, but it is now discovering that it is more difficult to make ends meet than perhaps it had previously realised. That is one of the challenges of actually having to take decisions, rather than just talking.

[Ms Margaret Ritchie (South Down) (SDLP)]

What further discussions have taken place with the Treasury and the Northern Ireland Executive on lowering air passenger duty to underpin our local economy?

[Chris Grayling]

The Treasury has held detailed discussions about this, and lots of Members representing different parts of the United Kingdom have made representations, but I fear that it is a matter for the Treasury to indicate whether it plans to do anything in response.

[Danny Kinahan (South Antrim) (UUP)]

Lord Empey’s Bill in the other House would have guaranteed slots to Northern Ireland. As the Secretary of State knows, air connectivity is very important to us, but the Bill fell because of EU regulation. Can we ensure that it is put back after Brexit?

[Chris Grayling]

We have to be quite careful about the mechanism. I am not personally of the view that the solution is just about slots. There are slots at inconvenient times of the day. We want connectivity at times that maximise benefits to the regions of the UK, so that Northern Ireland, Scotland, the south-west and the north of England have proper, good, effective international links. My commitment to the hon. Gentleman and to the House is that we will ensure proper protection for that connectivity, but the actual mechanism needs to await more detailed work.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

Just to correct the Secretary of State: it is Ruth Davidson and the Tories who are trying to stop the APD cut in Scotland.

Additional regional capacity is of use only if there are airlines willing to fill it. The lack of a Brexit plan has seen businesses literally in flight from the UK. For instance, easyJet has confirmed that it is in the process of setting up a separate airline based on the European mainland. It said:

“We are not saying there will be no agreement. We just don’t know the shape or form. We don’t have the luxury of waiting”—

and neither do we or those counting on these services. What is your plan?

[Mr Speaker]

I do not have any plan on this matter. The hon. Gentleman is a well-meaning fellow, but the question was too long.

[Chris Grayling]

Let me tell the hon. Gentleman who does have a plan. Bombardier has a plan: it is now investing in a major international rail hub in the UK based on the excellent work in Derby. Nissan has a plan: it is expanding its plants in the north-east. Honda has a plan: it is investing more money in Swindon. Google, Facebook and Apple have plans: they are opening new headquarters in London. In an economy that continues to grow well post-Brexit, that proves that this country will do well regardless.

[Mr Speaker]

Hoping for laser-like precision and succinctness, I call Mr Drew Hendry.

[Drew Hendry]

Instead of deflecting, will the Secretary of State at least agree to a meaningful update of route development and assistance for supporting additional services on existing routes, as well as new services, and—crucially—will he bring forward, before March 2017, firm proposals for specific airport-to-airport public service obligations?

[Chris Grayling]

The Government have not shied away from public service obligations when necessary—most recently, between Londonderry and Stansted airport. There are routes in and around the UK that are essential to the maintenance of our regional economies, and we have always been committed, and will remain committed, to ensuring that those obligations are met when necessary.

[Jeremy Lefroy (Stafford) (Con)]

14. What assessment he has made of the level of availability of charge points for electric vehicles.

--- Later in debate ---

[Jim Fitzpatrick (Poplar and Limehouse) (Lab)]

T1. If he will make a statement on his departmental responsibilities.

[The Secretary of State for Transport (Chris Grayling)]

In the wake of last week’s dreadful accident in Croydon, I would like to start this topical questions session by paying tribute to the British Transport police, for which I have ministerial responsibility, to all the emergency services and to the transport staff who worked so hard in the aftermath. I want to send all the good wishes of this House to those injured and our condolences to the families who tragically lost loved ones.

[Jim Fitzpatrick]

Recently published annual figures for those killed or seriously injured on our roads at the end of the second quarter of 2016 show a 3% increase on last year. For the third year running, deaths are higher than they were the year before and went up by 2% last year and this year. Thirty deaths may not sound that many out of 1,800, but for every grieving family, they are a tragedy. What is the Government’s plan to arrest and reverse this disturbing trend?

[Chris Grayling]

Of course every death on our roads is one death too many. It has to be said that our roads are among the safest in Europe and the world, but that is no reason for complacency. A trend in the wrong direction is an unwelcome one. The Under-Secretary of State for Transport, my hon. Friend the Member for Harrogate and Knaresborough (Andrew Jones), who is in his place alongside me, has responsibility for road safety. He is actively engaged, and will continue to be actively engaged, in looking at measures we could take that will improve things. We will look at different investment measures and different ways of educating motorists and those using the roads, and we will work with anyone who can come up with suggestions about how we can improve the situation.

[Philip Davies (Shipley) (Con)]

T4. The case for a Shipley eastern bypass was first made in the Airedale masterplan many years ago. The Government say that it is a matter for the West Yorkshire Combined Authority, while the West Yorkshire Combined Authority and Bradford Council say it was the Government rules on return on investment that made the scheme an impossibility. Will the Minister get together with the West Yorkshire Combined Authority and Bradford Council to make sure that this scheme can become a reality for the benefit of my constituents and the local economy?

--- Later in debate ---

[Mrs Cheryl Gillan (Chesham and Amersham) (Con)]

T5. At the request of the HS2 Committee, to ensure compliance with the aim to achieve “no net loss in biodiversity” during the construction of the project, Natural England produced a report on the subject. The Department appears to be dismissing that report, if the brevity of its response is anything to go by. Will the Secretary of State undertake to give detailed consideration to fulfilling Natural England’s recommendations, and will he put the protection of our ancient woodland at the top of his list of priorities?

[Chris Grayling]

I have looked at the report, and I recognise the importance of protecting our biodiversity. Our country is probably more covered in woodland today than it has been for many centuries in our history, and I find it encouraging that organisations such as the Woodland Trust are continuing to plant the forests and woods of the future. However, I am sceptical about a 1:30 ratio which appears to be based on nothing more than a gut instinct. I am not sure that that is an appropriate way of dealing with the issue. What is important, to my mind, is replacing lost woodland with extra planting, and following a “finger in the air” formula may not be the best way of doing so.

[Robert Flello (Stoke-on-Trent South) (Lab)]

T2. Many logistics organisations, such as the Freight Transport Association, are doing excellent work in trying to establish what the most important parts of British industry need from Brexit, but what is the Department doing to ensure that the important views of the smallest operators—single owner drivers, for example—are heard and given equal weight to those of the largest businesses? Will the Minister’s officials meet me to discuss mechanisms that would allow their views to be heard?

--- Later in debate ---

[Nic Dakin (Scunthorpe) (Lab)]

T3. I welcome the Minister’s positive comments about the quality of British steel, and the fact that 95% of steel in rail is UK steel. Does he believe that that record will be matched by the steel used for HS2?

[Chris Grayling]

Absolutely, but that does not apply only to the steel industry. I believe that HS2 is a great engineering project for the United Kingdom, and I was pleased to note a substantial British presence in the first set of contracts that we announced this week. I have made it very clear that the firms that hope to participate in this project should expect to leave a skills and expertise footprint behind in the United Kingdom, and that those that fail to do so should not expect to find themselves at the front of the queue when it comes to contracting.

[Mr Philip Hollobone (Kettering) (Con)]

On the midland main line, East Midlands Trains often gets it in the neck for train delays when often the responsibility is failures by Network Rail. Will the Secretary of State and the rail Minister design a rail compensation scheme that sends the correct signals to Network Rail to raise its game?

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

T6. Deep in the Airport Commission’s papers is the hugely costly and disruptive proposal to double the capacity of the M4 at its London end with a tunnel coming up in Brentford or Chiswick. Will the Secretary of State confirm the Government’s estimate of the cost of service transport infrastructure needed for a third runway at Heathrow, and what proportion of that will Heathrow airport be required to pay?

[Chris Grayling]

There are two separate issues here. Improvements are needed to local roads in west London, and the M4 is one of those where plans are afoot now to deliver improvements way before we have a new runway in place. Heathrow airport will be expected to pay for the infrastructure improvements directly linked to the new runway. There are of course other improvements, such as M4 improvements, that are not directly linked and that have for some while been envisaged as part of the ongoing road improvement programme this Government are pursuing. My commitment is that where a transport improvement is required to make the third runway possible, that will be met by Heathrow airport.

[Helen Whately (Faversham and Mid Kent) (Con)]

I thank the Minister of State, my right hon. Friend the Member for South Holland and The Deepings (Mr Hayes), for his commitment to tackling illegal HGV fly-parking across roads in Kent and throughout the country. Does he agree that ending this blight requires not only more lorry parking spaces, but more effective enforcement?

--- Later in debate ---

[James Heappey (Wells) (Con)]

Does the Secretary of State share my concern that the reduced growth deal 3 offer made to the Heart of the South West local enterprise partnership has threatened a number of important road and rail improvement schemes in Somerset? Does he also agree that driving growth through improvement to transport infrastructure should trump the devolution agenda?

[Chris Grayling]

First, it is important that the funding we allocate to different parts of the country delivers real improvement, whether to congestion and connectivity, economic development or housing. I met the Secretary of State for Communities and Local Government earlier this week to discuss the issue. No offers have yet been made on funding to LEPs; that will happen shortly.

[Diana Johnson (Kingston upon Hull North) (Lab)]

The electrification of the line to Hull was included in the Government’s northern transport plan published in March. The hon. Member for Brigg and Goole (Andrew Percy), now the Minister for the northern powerhouse, said:

“The problem if you are not included in the electrification is the risk that you then become just a shuttle service connecting into the main line.”

So can the Secretary of State explain to me why yesterday the decision was made not to include the electrification of the line to Hull, and to leave the TransPennine electrification finishing at Selby, 30 miles outside Hull?

[Chris Grayling]

The train companies got there first, and the good news for Hull is that both Hull Trains and TransPennine Express are going to be running on this route with new generation state-of-the-art hybrid trains that will run on both electric and diesel, and will connect Hull across the Pennines and connect Hull to London. That is good news for the passengers.

[Several hon. Members rose—]