Haulage Permits and Trailer Registration Bill [Lords]

Lord Grayling Excerpts
Tuesday 26th June 2018

(6 years, 4 months ago)

Commons Chamber
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Lord Grayling Portrait The Secretary of State for Transport (Chris Grayling)
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I beg to move, That the Bill be now read the Third time.

I want to say a few words at the concluding stage of the consideration of this Bill. First, I thank all those involved on both sides of the House—the Under-Secretary of State for Transport, my hon. Friend the Member for Hereford and South Herefordshire (Jesse Norman), the Opposition team who have taken part in the debates, the two Committee Chairs and, indeed, all hon. Members who served on the Public Bill Committee.

This is an important Bill. As the Brexit negotiations continue, it is critical that we prepare carefully for our future relationship with the European Union, take all the steps we need to take for all eventualities in negotiations that lie ahead, and make sure we have all the tools that are needed for that future relationship, so that haulage, which is a really important part of our economy, has the tools it needs to be able to carry on crossing borders and delivering the trade that is so essential to this country and to the European Union as a whole. After all, this industry directly employs 300,000 people.

The first part of this Bill will allow us to introduce a road haulage permit scheme covering existing agreements outside the European Union, while also making sure that we have the tools available for any permit-based deal with the European Union, if that is required. As you know, Madam Deputy Speaker, the Bill puts in place a legal framework for the Government to establish a system for issuing permits, without placing undue regulation or financial requirements on the industry.

The UK already has several of these in place with non-EU countries. It is important that we have all the tools we may need at the conclusion of the negotiating process and I am very grateful to both Houses of Parliament for expediting this measure. I believe that we have made another step forward in our preparedness process by passing this legislation.

The other part of the legislation gives the Government powers to establish a trailer registration scheme to meet the standards in the 1968 Vienna convention on road traffic. That ensures that UK operators can register trailers before entering countries that require such registration—I am referring to HGV trailers, which are an important part of the haulage sector, and not to smaller camping trailers that holidaymakers use. Commercial trailers over 750 kg and all trailers over 3.5 tonnes need to be registered. As with the first part of the Bill, we intend only to recover the costs of running the scheme and not to make a profit.

On the trailer safety measures added in the other place, the Lords made its recommendations and the Government acted on them. We will publish a report on trailer safety within one year of the Bill coming into force.

This is a good Bill and a valuable contribution to the preparations for Brexit. It also puts in place sensible safety measures and a sensible framework for the future of our haulage sector when it comes to the permits and registration required for it to continue to operate in the way we want. I again thank all those involved in the Bill on both sides of the House.

Airports: National Policy Statement

Lord Grayling Excerpts
Tuesday 26th June 2018

(6 years, 4 months ago)

Written Statements
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Lord Grayling Portrait The Secretary of State for Transport (Chris Grayling)
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On Monday the House of Commons debated the proposed airports national policy statement which I laid before Parliament on 5 June. Following the approval of the statement by the House, I am pleased to inform the House that I am today designating it as a national policy statement under the provisions of section 5(1) of the Planning Act 2008, and have arranged for publication as required by section 5(9)(a) of that Act.

The designation of the airports national policy statement marks a significant step forward. It provides the primary basis for decision making on development consent applications for a north-west runway at Heathrow airport, clarifying what is required to enable the development of much needed additional airport capacity that is essential for trade and economic growth, while setting clear requirements to mitigate the impacts on local communities and the environment.

The next step is for applicants to develop their plans, and then carry out further public consultation as required under the Act. Any application for development consent will of course be considered carefully and with an open mind based on the evidence provided, including through a public examination by the independent planning inspectorate, before a final decision is made.

[HCWS796]

National Policy Statement: Airports

Lord Grayling Excerpts
Monday 25th June 2018

(6 years, 4 months ago)

Commons Chamber
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Lord Grayling Portrait The Secretary of State for Transport (Chris Grayling)
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I beg to move,

That this House approves the National Policy Statement on New runway capacity and infrastructure at airports in the South East of England, which was laid before this House on 5 June 2018.

This is a very important moment in the history of the House and the history of the country. If the House endorses the proposed national airports policy statement today, it will move on from decades of debate and set what is, to my mind, a clear path to our future as a global nation in the post-Brexit world.

Let me explain to Members what we are doing today. The proposed policy statement does not grant final planning consent; what it does is set the policy against which a promoter of an expanded Heathrow airport can deliver more detailed design and participate in the detailed planning process that can lead to final consent.

I thank the many Members on both sides of the House who have gone on the record to support expansion at Heathrow, and who have made considerable efforts to persuade others of its importance to all nations and regions of the United Kingdom. I know that this debate is divisive for many, but there is also strong support across the House for what I believe is a very important step for our nation, and I am grateful to all those who have been involved in supporting the way forward that I believe is right for our country.

Michael Fabricant Portrait Michael Fabricant (Lichfield) (Con)
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My right hon. Friend has mentioned divisiveness. I personally think that this development is well overdue, and, although I know that it is not on the cards, I would support a fourth and a fifth runway, at Heathrow and at Gatwick. Does my right hon. Friend accept, however, that—just as with HS2—when constituency matters come into the equation, it is understandable that some people feel that they are unable to vote for this Government motion, and might find themselves called away?

Lord Grayling Portrait Chris Grayling
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I would never criticise any Member for representing the views of his or her constituents. After all, whatever position we may hold in the House, in government or in opposition, we are all ultimately constituency MPs, and it is absolutely right for us to champion the issues that affect our constituents.

I also want to thank people outside the House. It is unusual for me to find myself campaigning on the same side of the argument as Len McCluskey of Unite the Union, but the trade union movement has been a strong supporter of this, as have business groups in all corners of the United Kingdom.

Graham Stringer Portrait Graham Stringer (Blackley and Broughton) (Lab)
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I will join the Secretary of State in the Lobby tonight because I think that the third runway is a piece of infrastructure of national importance that will benefit the whole nation. However, what it must not do is increase the disparity of wealth and income between the regions of this country and London and the south-east. Can the Secretary of State tell us what extra funds he will invest in the regional airports to ensure that they can make their contribution? It cannot be right, at a time when this investment will lead to a great deal of public expenditure in the south-east, that Manchester airport is expected to pay for the station for HS2.

Lord Grayling Portrait Chris Grayling
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I absolutely take on board the hon. Gentleman’s point. Of course Manchester airport is a great success story, and a great international success story. I have been working with the airport management to help it expand its expertise internationally and will continue to do that.

What I would say to reassure the hon. Gentleman is that, as he will be aware, the Infrastructure and Projects Authority has indicated that the region of the country that will secure the highest proportion of Government spending on transport in the next few years is the north-west. That is right and proper—a sign of our continuing commitment to deliver improvements in the north of this country that are long, long overdue.

Rehman Chishti Portrait Rehman Chishti (Gillingham and Rainham) (Con)
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The Secretary of State is absolutely right: Members of Parliament have a duty to stand up for their constituents, and I will do just that. Can he confirm that the expansion of Heathrow puts an end to the daft estuary airport idea, and that the long-term provision of air capacity needs can be met at Gatwick?

Lord Grayling Portrait Chris Grayling
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The Airports Commission looked very carefully at the estuary airport concept, concluded that it was not viable and made this recommendation. I see no way how, off the back of an expanded Heathrow, an estuary airport would become a viable option, so I reassure my hon. Friend on that point.

Ian Paisley Portrait Ian Paisley (North Antrim) (DUP)
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In terms of the benefits for the regions, does the Secretary of State accept that the expansion opens up the opportunity for over 500 jobs for Northern Ireland, £5 billion of economic growth, a £10 million airline route development programme, and a logistics hub that, if based in Northern Ireland, will increase productivity and jobs and make Northern Ireland a key part of this development programme? Does he support that hub being in Northern Ireland?

Lord Grayling Portrait Chris Grayling
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This project, including the development hub concept that Heathrow has been promoting, will make a contribution to the economy of all parts of the United Kingdom. I know the hon. Gentleman has a keen eye on making sure that the hub goes to Ballymena; I cannot make any promises to the airport on the plan, but I know the hon. Gentleman will carry on making that argument very robustly.

Mark Pritchard Portrait Mark Pritchard (The Wrekin) (Con)
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Whether it is pre or post Brexit, does the Secretary of State accept that, to be an open, liberal, market economy, we need an airport that can compete against the likes of Paris, Schiphol, Istanbul, Dubai and Doha? On the issue of the regions, does he accept that Birmingham airport also has a part to play over the skies of the UK?

Baroness Laing of Elderslie Portrait Madam Deputy Speaker (Dame Eleanor Laing)
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Order. Before the Secretary of State answers the two questions in that intervention, may I say that interventions should be short and should make one point? Otherwise, it is not fair to Members at the end of the incredibly long list of speakers I have here. Those making interventions now at great length are taking time away from the Members who will be trying to speak, having sat here until after 9 o’clock tonight.

Also, there are lots of conversations going on around the Chamber; perhaps Members are negotiating which way they are going to vote this evening. If they are, will they do so either more quietly or somewhere else? The rest of the House wishes to hear the Secretary of State.

Lord Grayling Portrait Chris Grayling
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Thank you, Madam Deputy Speaker. I will respond to the last intervention, then take a couple more interventions and then make some progress: as you rightly say, lots of Members want to contribute.

I say in response to my hon. Friend the Member for The Wrekin (Mark Pritchard) that this is absolutely crucial to the UK as a whole. He is right that Birmingham airport is probably the most directly affected, although of course HS2’s arriving at Birmingham airport will create fantastic connections to that great airport from around the country.

Our forecasts show all regional airports growing, which is an indication that we need to provide the capacity at Heathrow. We can do so without damaging the prosperity of the regions. Indeed, it will enhance the prosperity of the regions, as their airports grow and their connections improve.

Andrew Mitchell Portrait Mr Andrew Mitchell (Sutton Coldfield) (Con)
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My right hon. Friend should be commended for finally, at long last, bringing forward this vital measure of national infrastructure. Will he confirm that although, according to Sir Howard Davies, London and the south-east will benefit to the tune of £52 billion economically, the north, Birmingham and the rest of the country will benefit to the tune of nearly £80 billion?

Lord Grayling Portrait Chris Grayling
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My right hon. Friend is right, and it is interesting how much support there has been from around the whole United Kingdom: not a single regional airport has opposed the expansion of Heathrow, and I have talked to business groups up and down this country, all of whom support the expansion of Heathrow because they believe it will make a huge difference.

John Redwood Portrait John Redwood (Wokingham) (Con)
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Although airport expansion is crucial to our economic success, does my right hon. Friend accept that from 2014 unfortunate changes to the pattern of aviation movements from Heathrow, made without consultation, have created a much worse noise situation over my constituency and adjacent constituencies? Will he ensure that a proper noise reduction programme is in place from now on? We do not like the existing level of noise, let alone an expanded one.

Lord Grayling Portrait Chris Grayling
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I absolutely understand my right hon. Friend’s concerns and will make two points to him. First, we intend to move ahead quickly with setting up the independent noise monitoring body, which is needed to make sure the rules are kept to. In addition, I believe the modernisation of air space, and proper enforcement of the way air space operates, will mean we can use it in a smarter way, give communities more relief and avoid the kind of change that affected my right hon. Friend’s constituency. I give him the assurance that I will work with him, and make sure that NATS and others work with him, to ensure that the issue he is concerned about is addressed in the future.

None Portrait Several hon. Members rose—
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Lord Grayling Portrait Chris Grayling
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I will make a little more progress, and then take some further interventions.

The need for an additional runway in the south-east is greater than ever before because—this is the reason why we have to do this—all five of London’s main airports will be full by the mid-2030s, and Heathrow is full today. We are seeing business leave the UK and go to airports like Frankfurt, Amsterdam and Paris, which have made additional capacity provision. If we sit here with our “Plane Finder” app on, we can watch planes flying overhead from the United Kingdom so that UK business passengers can go to Schiphol and then fly around the world. We are losing those connections to other countries, and we are losing the investment that goes around those connections. That is an important part of why this expansion is necessary.

I also need to be clear that this is not at the expense of growth at our other airports. It is simply not the case that other airports will lose business as a result of the expansion. All of our forecasts show every airport around the UK continuing to grow and expand. The UK’s Regional and Business Airports Group, which represents 40 airports, wrote to hon. Members saying:

“Heathrow expansion would mean more UK airports have vital access to a truly unrivalled network of routes...to destinations around the world.”

With expansion at Heathrow, non-London airports will continue to experience that strong growth—80% by 2050—and, importantly, they will have the capacity to accommodate that growth.

Jim Shannon Portrait Jim Shannon (Strangford) (DUP)
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I thank the Secretary of State for his statement. This is clearly more than just about the constituencies around Heathrow and London; it is about connectivity for all the regions, as he has outlined. It has been said that Belfast City, Belfast International and Londonderry airports will gain by some 15% in new domestic routes. Can the Minister confirm that the increase will be of 15%?

Lord Grayling Portrait Chris Grayling
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My expectation is that we will see substantial growth. I would not put an exact percentage on it, but I have said that I will use the public service obligation mechanisms to set aside 15% of the additional capacity at Heathrow for links around the United Kingdom. We will use the PSO mechanisms to ensure that airports such as those in Northern Ireland, which are already thoroughly successful, benefit from this connection, and we will do the same in Scotland, the south-west and at other airports in the north and potentially north Wales, where this can make a difference.

Ruth Cadbury Portrait Ruth Cadbury (Brentford and Isleworth) (Lab)
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How many airports per region will be protected by that “up to 15%” promise in the document? I have been led to understand that the Department will only protect one per region.

--- Later in debate ---
Lord Grayling Portrait Chris Grayling
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That is simply not the case. Heathrow itself has set out a long list of airports that it expects to benefit and where it will make provision for those links to happen. I believe that setting aside that 15% will result in links being provided to airports all around the United Kingdom. We will use the PSO mechanism to make sure that the expansion delivers improved links to all around the United Kingdom.

Geoffrey Clifton-Brown Portrait Sir Geoffrey Clifton-Brown (The Cotswolds) (Con)
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This proposal for a third runway at Heathrow was first published in 2002, whereas Hong Kong published theirs in 2011 and it will be built within five years. Does my right hon. Friend agree that if we are to remain internationally competitive, we should get on and build the runway?

Lord Grayling Portrait Chris Grayling
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Absolutely; I completely agree with my hon. Friend. We have delayed on this for much too long, and it is time we got on with the job.

Caroline Lucas Portrait Caroline Lucas (Brighton, Pavilion) (Green)
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Aviation already has a uniquely generous allocation for climate emissions, which basically means that passenger numbers can grow by up to 60% by 2050, but according to the Secretary of State’s own Department, passenger numbers are expected to grow by 93% by 2050 even before expansion at Heathrow, so when is he going to start looking at demand-side regulation—perhaps including a frequent flyer levy—rather than simply carrying on growing more and more supply? Or is he content to follow the advice of the hon. Member for Lichfield (Michael Fabricant) and basically cover the whole country in concrete?

Baroness Laing of Elderslie Portrait Madam Deputy Speaker (Dame Eleanor Laing)
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The hon. Lady has made her point, and the hon. Lady—I mean the hon. Gentleman—[Laughter.] I will start again. The hon. Lady has made her point. The hon. Gentleman has made his point, which is not a point of order for me, but the matter is dealt with, I think.

Lord Grayling Portrait Chris Grayling
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Let me touch on the issue of climate change, which I was planning to come to in a moment. We are confident that we can deliver the expansion at Heathrow within our obligations under the Climate Change Act 2008. Any increase in emissions that would have a material impact on our ability to meet our obligations would lead to a refusal. I can tell the hon. Lady that the independent Committee on Climate Change wrote to me two weeks ago setting out its views on the NPS. It works to a target that aviation emissions in 2050 should be no higher than they were in 2005. With more efficient aircraft and engines, improved ground operations and the use of biofuels, the CCC’s analysis estimates that the UK can accommodate that increase in air travel by 2050 while meeting our climate change obligations. We believe that an expanded Heathrow airport and a new runway are consistent with this target.

None Portrait Several hon. Members rose—
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--- Later in debate ---
Lord Grayling Portrait Chris Grayling
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I want to make some more progress, then I will give way a couple more times.

Let me touch on the benefits to the wider economy and the connections to Heathrow airport on the ground. Surface access is one of the questions that is regularly raised. People ask why this location is best and what the benefits will be for the United Kingdom. Heathrow is already Britain’s best-connected airport by road and rail, and this will be further strengthened by improvements to the Piccadilly line, by new links to Heathrow through Crossrail and connections to HS2 via an interchange at Old Oak Common, and beyond that by the development of western and southern rail access to Heathrow.

A point that people often miss about Heathrow airport is that it is also crucial to the economy because it is our biggest freight port by value. It carries more freight by value than all other UK airports combined, nearly all of it transported in the belly-hold of passenger aircraft. This expansion will bring a real trade boost to the United Kingdom, providing a greater choice and frequency of vital long-haul flights to international markets for passengers and goods than could be achieved by any of the other options that were available to us. These benefits will be felt all around the United Kingdom.

Michael Tomlinson Portrait Michael Tomlinson (Mid Dorset and North Poole) (Con)
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My right hon. Friend knows about the case of my constituent, John Coles, a British Airways engineer who sadly passed away in an accident at Heathrow. I support a third runway, but the Secretary of State has not yet mentioned health and safety. Will he ensure that the health and safety of the 75,000 employees and 78 million passengers will be front and centre in his mind?

Lord Grayling Portrait Chris Grayling
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Absolutely. What happened to my hon. Friend’s constituent was tragic. I know that it is an accident that all at Heathrow bitterly regret, and they have worked to learn lessons from it. Of course, at a major facility such as Heathrow—and, indeed, any other airport—safety has to be our priority. Aviation is one of the safest—if not the safest—modes of transport around, but that should not in any way allow for slippage on health and safety.

Mary Robinson Portrait Mary Robinson (Cheadle) (Con)
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Manchester airport employs thousands of people in my constituency, and it has 28 million passengers a year, with a capacity of 55 million. Obviously, it is doing a lot more than hub; it has global connections as well. Given the investment in northern powerhouse rail and in the north-western and northern economy, can my right hon. Friend assure me and my constituents that we will have even more benefits from this new proposal?

Lord Grayling Portrait Chris Grayling
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All the expectations we have are that Manchester airport will continue to grow strongly. There has been a £1 billion investment, and I was there recently to see the start of the development of the new terminal building. Manchester airport is a fantastic success story. It is a real asset to the economy and to the country as a whole. Manchester will also gain through the additional connectivity to new and emerging markets that we get through a hub airport. This is a good news story for Manchester, and it is also part of the ongoing success story of the north.

Catherine West Portrait Catherine West (Hornsey and Wood Green) (Lab)
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What assessment has the Secretary of State’s Department made of the impact of this proposal on the respiratory health of London children?

Lord Grayling Portrait Chris Grayling
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We have been very clear about two things. First, this runway cannot open if it does not meet air quality standards. Secondly, the air quality issue in west London is much bigger than the airport itself. This is the kind of challenge that we see in any busy metropolitan area. That is why we published our air quality strategy last summer, and it is why we need to get on with the job of making our car fleets much greener through lowering emissions. We are pushing ahead with low emission vehicles as fast as we can in this country.

Dominic Grieve Portrait Mr Dominic Grieve (Beaconsfield) (Con)
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My right hon. Friend will be aware that Heathrow is a vital economic hub, but because of that, the traffic congestion that surrounds it is a really serious problem, particularly in parts of my constituency, where the emissions levels are high and the roads are almost impassable. Can he give me an assurance that, in looking at the development of a third runway, attention will be given to improving the infrastructure so that these areas benefit?

Lord Grayling Portrait Chris Grayling
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That has to happen. This is not just about infrastructure. My Department has already been in discussions with South Bucks Council about some of the issues that my right hon. and learned Friend’s area will face and about how they can be mitigated. One of the options is to improve the environment around the Colne Valley, and I am keen for my officials to work with him and the local authority on that. The provision of a community fund from Heathrow as a result of this will make it easier to fund projects such as those.

Justine Greening Portrait Justine Greening (Putney) (Con)
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My right hon. Friend has said that Manchester airport will gain from this proposal, but the reality is that the modelling that his own Department and the Transport Select Committee have done shows that Manchester airport will have 11% or 12% fewer international flights by 2030 as a result of the Heathrow expansion. I spoke to the chief executive of Manchester airport today, and he explained to me that its catchment area for passengers is very different, so it is simply wrong to say to the House that Manchester will somehow benefit from this proposal.

Lord Grayling Portrait Chris Grayling
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I refer my right hon. Friend to the tables that we have published, which show that Manchester will grow international routes over the 2030s and 2040s, as will Heathrow. This is an important part of delivering growth around the United Kingdom. The reason for a hub airport is that, if there is a new destination such as an emerging city in China or a new, growing economy in Africa or Latin America, there is often simply not enough of a market from an individual location to support that new route. A hub brings together passengers from around the United Kingdom to make that route viable.

Lucy Powell Portrait Lucy Powell (Manchester Central) (Lab/Co-op)
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I am pre-empting some of the remarks that I will make in my speech later, but as a Manchester MP, I thought I should speak for Manchester airport on that point. Manchester airport refutes the figures in the forecasts, because it believes that it will exceed those passenger numbers even before the Heathrow expansion is on stream. The hub argument is not the right argument to make for Manchester, because most of its connectivity involves direct flights. There are other reasons that Greater Manchester MPs have come together to support this proposal, but that particular argument is not the one to make.

Lindsay Hoyle Portrait Mr Deputy Speaker (Sir Lindsay Hoyle)
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Order. I am not going to stop interventions being made, but they must be short if we are to get through all the speakers.

Lord Grayling Portrait Chris Grayling
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We want to ensure that passengers who are flying to a hub airport from points in the UK can do so through a UK airport and not, for example, through a middle eastern hub. Manchester airport is a great success story and, on behalf of this country, I am hugely proud of how much it has achieved. I have been trying to work with the management of Manchester airport to help it to win business internationally, because I think it has a great model that it could take to other countries. I think that this will be a win-win. It will be a win-win for the north of England, for Manchester, for Liverpool, for Leeds, for Newcastle, for Edinburgh, for Glasgow, for Aberdeen, for Dundee, for Belfast and for Newquay.

None Portrait Several hon. Members rose—
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Lord Grayling Portrait Chris Grayling
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I will give way three more times, then I really must make some progress.

Stephen Hammond Portrait Stephen Hammond (Wimbledon) (Con)
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I listened carefully to my right hon. Friend’s remarks about climate change, which will clearly require an upgrade to surface transport. Will he confirm whether the statement lays out the polluter pays principle and that the developer will be expected to pay a contribution to the surface transport upgrades?

Lord Grayling Portrait Chris Grayling
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Absolutely. Improvements to nearby roads and paying for parts of the rail projects that are due to happen are built into the plans. It is absolutely essential that that is the case. Heathrow airport will make a substantial contribution to that.

None Portrait Several hon. Members rose—
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Lord Grayling Portrait Chris Grayling
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I will give way to two more Members who have a particular interest in the issue.

Andy Slaughter Portrait Andy Slaughter (Hammersmith) (Lab)
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The last time this House took a decision on this matter, in January 2009, the Secretary of State voted against a third runway. Since then the case for Heathrow has got worse on every indicator, whether it is the economic case, the cost to the public purse, the environmental case or the effect on the regions. Why has he changed his mind in the face of all that evidence?

Lord Grayling Portrait Chris Grayling
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We commissioned an independent review that asked where we should site new capacity in the south-east of England. The Airports Commission came back with a very clear view. We have studied that view and talked to all those who are promoting individual schemes, and as a Government we believe that this is the right thing to do. We stood on this in our election manifesto last year. I believe it is the right thing to do for Britain.

Lord Goldsmith of Richmond Park Portrait Zac Goldsmith (Richmond Park) (Con)
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The Secretary of State said earlier that not a single regional airport has opposed this scheme, but will he not acknowledge that Manchester, Edinburgh, Birmingham and the East Midlands have all expressed opposition to it, not because they do not believe that they will see growth, but because they believe that whatever growth they do see will be in spite of Heathrow expansion and that it will be less?

Lord Grayling Portrait Chris Grayling
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The key point is that they will see growth. The opportunities are there right across the United Kingdom. As I said a moment ago, the body that represents regional airports has been very robust indeed in its support. I genuinely believe that this project brings benefits right across the United Kingdom, including at least 100 additional flights a week for Scotland, and potential new routes for Northern Ireland, unlocking the benefits of tourism and advanced manufacturing. We believe that this will deliver, across the United Kingdom, the kinds of connections we need for the future.

Let me touch briefly on a couple of other issues that have been raised. First, I have been very clear that this airport NPS says that expansion can happen only if the delivery is compliant with our legal obligations on air quality. I am very confident that the measures and requirements set out in the NPS provide a very strong basis for meeting those obligations, including a substantial increase in public transport mode share, and it could also include an emissions-based access charge to Heathrow airport and the use of zero or low-emission vehicles. Heathrow is already consulting on the potential of a clean air zone.

Crucially, communities will be supported by a package of compensation worth up to £2.6 billion. That is absolutely vital. It is not possible to deliver a project such as this without some consequences for people who live in the area—I am well aware of that. Our job is to make it as easy as possible for those people in what is inevitably going to be a very difficult set of circumstances. There is, therefore, a world-leading package of compensation, ensuring that homeowners who lose their homes or who live closest to an expanded airport will be paid 125% of the full market value of their property. It includes a comprehensive noise insulation programme for homes and schools, and a community compensation fund of up to £50 million a year, which can help in places such as the Colne Valley. The Government will also consider how local authorities can benefit from a retention scheme for the additional business rates paid by an expanded Heathrow.

To mitigate the noise impacts of expansion, the proposed NPS makes it clear that the Government intend to implement a six-and-a-half-hour ban on scheduled night flights, which could mean that some communities will receive up to eight hours of noise relief at night. That is a really important part of the proposal. It may be uncomfortable and difficult for airlines, but it is the right thing for local communities.

It is important to note that those measures will not be optional; they will be legally binding. Let me explain how we will ensure that that happens. We are governed by the Planning Act 2008, a good piece of legislation passed by the Labour party. Following a period of statutory consultation by a promoter, any subsequent application for a development consent order will be allocated to the Planning Inspectorate. At the end of the examination process, the inspectorate will report to the Secretary of State and the mitigation measures needed to comply with the NPS will be imposed on a successful applicant as requirements in the development consent order. The Act grants the relevant planning authority significant powers to investigate a breach of the requirements and ultimately to apply for an injunction or prosecute for failure to remedy a breach. In the Crown court the fine is unlimited and, in determining the level of the fine, recent judicial trends have tended to look to the benefit gained from the offence.

I can also confirm that expansion can and will be privately financed, at no cost to the taxpayer. It has to be delivered in the interest of the consumer, which is why in 2016 I set out my ambition to keep airport charges as close as possible to current levels, and why I have commissioned the Civil Aviation Authority to work with the airport to keep landing charges close to current levels. So far, that process has identified cost savings of £2.5 billion.

None Portrait Several hon. Members rose—
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Lord Grayling Portrait Chris Grayling
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Before I conclude, I will take a couple more interventions, but only from Members who have not already intervened, for obvious reasons.

Mary Creagh Portrait Mary Creagh (Wakefield) (Lab)
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May I take the Secretary of State back to the issue of climate change, which he glossed over? His policy statement says that passenger numbers can grow by 80% by 2050 and we can still meet our carbon budgets, but the Committee on Climate Change says that they must not grow by more than 60% by 2050. He has outlined a set of measures in his sustainability appraisal, but is he not just adopting the Micawber strategy of hoping that something is going to turn up on climate change?

Lord Grayling Portrait Chris Grayling
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The key thing that is happening right now on climate change and aviation emissions is a transformation of aviation technology. As I said earlier, the new generation of aircraft are already much more fuel efficient. We expect the introduction of biofuels and further technological changes. We have been not only working very carefully with the Airports Commission, but listening very carefully to the Committee on Climate Change. This House will form a view today, but we believe absolutely that we can deliver this expansion within our obligations.

None Portrait Several hon. Members rose—
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Lord Grayling Portrait Chris Grayling
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I will give way one final time and then conclude.

Helen Whately Portrait Helen Whately (Faversham and Mid Kent) (Con)
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In the past, Heathrow has scored poorly on accessibility for people with disabilities. Will my right hon. Friend make sure that, as part of this expansion, Heathrow improves its accessibility for people with disabilities, particularly people with wheelchairs?

Lord Grayling Portrait Chris Grayling
- Hansard - -

That is a really important point. It is not something that can and should wait until 2026. There have been one or two unfortunate incidents recently in the aviation sector, which should be as disability friendly as any other mode of transport. All airports and airlines have a duty to do that.

I am going to conclude because there is a long list of Members who want to speak. My message to the House is very simple. I believe that this project is in the strategic interests of our nation and that it will unlock prosperity in all the regions of this country. I think it will set us fair for the post-Brexit world. I believe this is essential for all our constituents, with the jobs it will create and the connections it will bring. We have to deliver it in a way that ultimately stretches every sinew to do the best we possibly can for the communities affected. My commitment to them is that we will do that. We will ensure tight rules around the permissions that are granted, and we will make sure that the commitments made by the airport and by this Government in the run-up to today’s vote are kept, enshrined in law and delivered for the future.

Ultimately, this is a project this country needs. It has been delayed for much too long. It falls to this House of Commons to take a decision today and I urge it to do so.

None Portrait Several hon. Members rose—
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Andy McDonald Portrait Andy McDonald
- Hansard - - - Excerpts

My hon. Friend makes a very powerful point because this whole process is predicated on banking technological achievements that do not currently exist. We must be more thoughtful about this.

The Committee on Climate Change’s last progress report saw the UK failing to stay on track to meet its 2030 carbon targets. The CCC publishes its latest report on Thursday, and it reportedly will detail just how badly the Government are performing. The third runway will increase the number of flights by 50%, as per the Airports Commission report—table 12.1; page 238—yet any increase in aviation emissions will require other sectors to reduce their emissions beyond 85%. That is astonishingly imbalanced. The Department’s own projections show that a new runway at Heathrow will directly lead to a breach of at least 3.3 million tonnes of the 37.5 million tonnes carbon dioxide limit for 2050 set by the CCC without new policies to mitigate emissions.

Lord Grayling Portrait Chris Grayling
- Hansard - -

It might be helpful if the House were to understand whether the hon. Gentleman’s position is that there should be no expansion of aviation at all.

Andy McDonald Portrait Andy McDonald
- Hansard - - - Excerpts

I thought the right hon. Gentleman was going to provide some clarity from the Dispatch Box about the breach of the CO2 limits that I have just described, but instead he asks that question. In fact, we know that we are talking about considerably more than that. It is utterly absurd for the Government to ask the House to vote on expanding Heathrow without a plan for reducing aviation carbon emissions. Under the revised NPS, there is a very real risk that aviation’s carbon emissions will be higher in 2050. Furthermore, the Department for Transport is not due to publish a new aviation strategy until 2019.

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Alan Brown Portrait Alan Brown
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I want that, but I also want guarantees of protection. I will come on to that point, so, again, I ask the hon. Gentleman to show a bit of patience and wait.

Lord Grayling Portrait Chris Grayling
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I am very grateful to the hon. Gentleman for giving way. Can he confirm whether Heathrow airport has this afternoon agreed with the SNP and the Scottish Government that it is prepared to set aside 200, not 100, slots at Heathrow airport for connections to Scotland? If that is the case, why are they continuing to object to Heathrow’s plans?

Alan Brown Portrait Alan Brown
- Hansard - - - Excerpts

Obviously, 200 slots are preferable to 100 slots. The thing is that only the UK Government can provide the protections. Heathrow has always said that it is willing to work with the Scottish Government, and with the UK Government, but it is only the UK Government who have the powers to provide the guarantees and protection.

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Alan Brown Portrait Alan Brown
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I do not recognise the exact figure mentioned by the right hon. Lady, but I do accept that Department for Transport figures suggest that direct connections and international connectivity will not increase as much if the Heathrow expansion goes ahead. Yet Scottish airports themselves do not express that concern and they do back the expansion of Heathrow, so I also have to trust their judgment on the matter.

Lord Grayling Portrait Chris Grayling
- Hansard - -

Is the hon. Gentleman saying that the Scottish National party’s view is that because it is not sure how big Scotland’s bit of the cake is going to be, there should be no cake?

Alan Brown Portrait Alan Brown
- Hansard - - - Excerpts

I have also spoken up for other regional airports, because I would expect them to want the same protections that I am asking for when it comes to Scottish airports. It is up to the Secretary of State to give these guarantees and satisfy us on these points.

Paragraph 1.62 of the Government’s response to the Transport Committee’s recommendations explains that the Crown dependencies are also included in the 15% of additional slots. How will the figure actually break down between the Crown dependencies and all the various regional airports?

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Lord McLoughlin Portrait Sir Patrick McLoughlin (Derbyshire Dales) (Con)
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There is no doubt that large-scale infrastructure projects will always be controversial, and no doubt that this is a large-scale infrastructure project that is incredibly controversial. That is one of the reasons why the coalition Government asked the Davies commission to do a report. That was supported by the House at the time, including by the Opposition. It was an attempt to try to get an expert opinion to take us forward through a report that we could take a proper decision on.

I am incredibly disappointed by the way that the SNP has responded today, because a big issue like this needs cross-party support to take it forward. These things do not happen in one Parliament; they go forward over many Parliaments. I heard the hon. Member for Kilmarnock and Loudoun (Alan Brown) question the Secretary of State on 5 June, just 20 days ago, when he said:

“To be fair, Heathrow has engaged fully with the Scottish Government, and has signed a memorandum of understanding in relation to commitments”.

He went on to say:

“However, all but one of the Scottish airport operators support it. So do the various Scottish chambers of commerce, because they recognise the business benefits that it can bring to Scotland, including…16,000 new jobs. That helped to sway me, and the Scottish Government have reiterated their support.”—[Official Report, 5 June 2018; Vol. 642, c. 175.]

Well, support means votes. It does not mean trying to abstain at the end of the day when an important decision like this comes about. However, I can assure the SNP that the Secretary of State for Scotland will carry on making the case for Scotland in the House of Commons and at the Cabinet table, and so will my 13 colleagues who represent Scottish constituencies. The people of Scotland can feel let down by the SNP for playing party politics, because that is absolutely all that this decision is about.

Lord Grayling Portrait Chris Grayling
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I thank my right hon. Friend for the important point that he is making. Will he join me in paying tribute to Scotland’s best representatives—the team of Conservatives who would not play party games like those we have just heard and who are acting truly in the interests of Scotland and the Scottish people?

Lord McLoughlin Portrait Sir Patrick McLoughlin
- Hansard - - - Excerpts

My right hon. Friend is absolutely right. I urge SNP Members, even at this late stage, to change their minds on this and follow through on what they say they support with their votes, because this is too important a matter not to do so.

It is now 50 years since the Roskill commission first started its work on expansion. I was first made a junior Minister in the Department of Transport in 1989. I was originally told that I was going to be the Minister for roads, but the then Secretary of State, Cecil Parkinson, informed me that I was going to be the Minister for aviation and shipping—which was a bit of a surprise to me, especially bearing in mind my fear of flying at the time. In 1989, there were 368,430 air traffic movements at Heathrow airport. We have gradually seen those grow, up until 2006, when the figure was 477,000 movements a year, peaking in 2011 at 480,000. There has been growth and expansion at Heathrow, and during that time NOx emissions have in fact reduced. That has come about partly due to newer and better aircrafts. I think that Heathrow has got the message that it has to improve on environmental issues, and that has moved substantially up the track.

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Lilian Greenwood Portrait Lilian Greenwood
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I hope the Minister addresses the issues around PSOs in his closing remarks.

The analysis supporting the decision is extensive; what is lacking is a fair and transparent representation of the information in the NPS to the House. For example, the Committee’s scrutiny revealed that the Department’s methods of presentation hid compelling noise modelling showing that more than 300,000 people are estimated to be newly affected by significant noise annoyance due to an expanded Heathrow. The total number of people in the noise annoyance footprint is estimated to be more than 1.15 million. Our investigations also indicated that those estimates are likely to be toward the lower end of the scale of potential impacts.

Lord Grayling Portrait Chris Grayling
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I hear what the hon. Lady says, but will she confirm that I made that clear in my statement to the House on the publication of the draft NPS? I also indicated that we expected that that would be a temporary process while technology changed, and that those figures assumed no mitigation measures, whereas we intend significant mitigation measures, including, for example, the night flight ban.

Lilian Greenwood Portrait Lilian Greenwood
- Hansard - - - Excerpts

The Secretary of State has clarified that issue. I simply want to ensure that Members have the full range of information in front of them before they vote this evening.

There are many instances where the assumptions underpinning the analysis misrepresented what was likely to occur in practice. For example, the Department has assumed that all the capacity will be filled within two years of an opening date in 2026, yet Heathrow’s own business plan expects phased expansion over five to 10 years. Earlier this month, the Secretary of State told the House:

“We have accepted the recommendations…and will follow faithfully the Select Committee’s wishes to make sure that its recommendations are properly addressed at each stage of the process.”—[Official Report, 5 June 2018; Vol. 642, c. 174.]

These are fine words but, disappointingly, they are not matched with actions, and the NPS has not been updated.

The second objective of our Committee’s scrutiny was to ensure that the NPS provided suitable safeguards for passengers and affected communities. We know that the Government have been struggling to deal with air quality in London for years. The Committee made two recommendations on changing the wording of the NPS to provide air quality safeguards. The Government did not accept these recommendations. On noise, we wanted to ensure that there were clear safeguards for communities, including guaranteed respite. The Government did not accept most of our recommendations to safeguard communities from noise impacts. On surface access, we recommended a condition of approval to ensure that the scheme would not result in more airport-related traffic on London’s roads. The Government did not accept that recommendation.

Lord Grayling Portrait Chris Grayling
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Will the hon. Lady confirm that if there is a point of disagreement between us, it is simply that we accepted the Committee’s recommendations but also said that the appropriate moment to insert them would be at the development consent order stage, rather than the NPS stage? Will she confirm that we have very clearly said that we will insert those at the DCO stage?

Lilian Greenwood Portrait Lilian Greenwood
- Hansard - - - Excerpts

I confirm that that is the Secretary of State’s view, and I will come on to my concerns about that approach in due course.

On protections for communities, we recommended that compensation be independently assessed and reviewed once the full impacts were known. The Government did not accept this recommendation. On protection for passengers, we recommended a condition of approval in the NPS that passenger charges be held flat in real terms unless not doing so was in their interests. The Government did not accept this recommendation.

Confidence in the Secretary of State for Transport

Lord Grayling Excerpts
Tuesday 19th June 2018

(6 years, 5 months ago)

Commons Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Andy McDonald Portrait Andy McDonald
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I do not know where the hon. Gentleman gets that figure from. If the Government take franchises back when they run out it costs diddly squat to take them back—zero—so he is talking utter nonsense.

No one other than the Government hold responsibility for their dogmatic stance. This dogma causes them to stand by and defend the rail structure that is manifestly not fit for purpose. It then falls to the Department for Transport to get involved to try to run the railway properly. It cannot do this. Today’s railway cannot run itself effectively because it was decapitated by privatisation and chopped into bits to facilitate private profit taking. Because there is no guiding mind overseeing the railway, the Department has to wade into the railway much more deeply than it should. Having taken this approach, the Government assume a greater deal of responsibility, but they have not shown themselves capable of discharging that responsibility.

The Department for Transport’s oversight has failed in three major ways. First, it appears that, when there was a decision on whether to press ahead with the timetable changes affecting Northern, the Department stood against allowing a deferral. Why did the Department not believe the professional advice it was given? Secondly, the Transport Committee heard from Network Rail yesterday that Thameslink phasing was first raised by the GTR readiness board in June 2017. Mr Halsall, the route managing director for the south-east, said the Department stood by and did not make a decision until November 2017—an astonishing five-month delay. What did the Secretary of State know and when did he know it?

Lord Grayling Portrait The Secretary of State for Transport (Chris Grayling)
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I can confirm that the decision to proceed with a slimmed down timetable was taken by me in July 2017.

Andy McDonald Portrait Andy McDonald
- Hansard - - - Excerpts

Well, I am saying to the Secretary of State quite clearly that a competent Secretary of State would have known this right at the outset and taken the appropriate steps. He did not. He allowed the situation to unwind.

Thirdly, the Thameslink industry readiness board—readiness board, there’s a laugh—formally requested that the GTR timetable changes should be scaled back, yet the Department dithered for two months. GTR boss Mr Horton said the board did not have an executive role, so he could not explain who was responsible for the meltdown—no one accountable and no one responsible.

I do not want to personalise the issue and I do not expect the Secretary of State to know every detail of what happens in his Department—[Interruption.] No, it is just everything he does and everything he stands for; it’s nothing personal. However, the three points I have described are all important failures of the Department for Transport at a high level. Stephen Glaister from the Office for Rail and Road is not an appropriate person to conduct a review into the timetable failings. The ORR itself has failed in its regulation of Network Rail, so it cannot be expected to conduct an independent investigation. This is yet another bad judgment by the Secretary of State for Transport. A new rail timetable is due to be implemented in December 2018. What funds, resources and support will the Secretary of State provide to ensure Network Rail’s planning capability can deliver the changes due in six months?

Today’s Financial Times reports the managing director of Trenitalia complaining about Network Rail and, in particular, the lack of integration between Network Rail and the train operating companies since privatisation. Did the Italians not do their homework on the reality of the UK’s railway? Recent events demonstrate more than ever that our railway is not integrated. I am afraid that the breach of faith and trust is so great that the Secretary of State’s credibility will never recover. There comes a point when the publicly accountable politician in charge of the railway should step up and shoulder the blame. It seems to me, and I suspect to many rail users, that we have more than reached that point.

Lord Grayling Portrait The Secretary of State for Transport (Chris Grayling)
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Before I respond to the points raised by the hon. Member for Middlesbrough (Andy McDonald), can I just say a couple of things? First, I saw the comments that he made yesterday, and I thought he was very brave on the whole issue of medicinal cannabis—I pay tribute to him for that. The other thing is that I echo his words about the tragic events at Loughborough Junction yesterday. Our hearts go out to the families of those concerned and, indeed, to all those who dealt with what was clearly a horrible incident on the ground. We owe a huge amount to the British Transport police in particular and to staff across the railway who deal with horrendous situations like this from time to time. I am very grateful to them for what they did.

For years, the Opposition have demanded that the railways be renationalised and run by the Government, and they have claimed that they would be run much better if they were. Now it appears that they think the railways are already run by the Government, and that if something goes wrong, it is down to us. Frankly, I am going to let their confusion speak for itself and concentrate today on what really matters: getting things back into shape for passengers.

Peter Kyle Portrait Peter Kyle (Hove) (Lab)
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Will the Secretary of State give way?

Debbie Abrahams Portrait Debbie Abrahams (Oldham East and Saddleworth) (Lab)
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Will the Secretary of State give way?

Lord Grayling Portrait Chris Grayling
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I will give way once or twice during my speech, but as you said, Madam Deputy Speaker, we need to make progress so that people get a chance to contribute. I am going to make some progress before I give way.

As I previously told the House, over the past weeks, passengers on parts of the GTR and Northern franchises have faced totally unsatisfactory levels of service, and I apologise to passengers that have experienced and are experiencing disruption. Since the timetable has been introduced, my Department and the industry have been working round the clock to restore the reliability of the service across the network. Hour by hour, my officials are in contact with GTR, Northern and Network Rail to work to improve the service to passengers.

As I told the House, I have commissioned an independent inquiry. This will be led by the independent rail regulator, Stephen Glaister, to examine why we are in this situation and to avoid it ever happening again. I have met the owners of the franchises and demanded that they improve their operational response, including, in the case of GTR, increasing its managerial capacity. Clearly, nobody wants us to be in the position we find ourselves in today, but let me be absolutely clear: everyone in my Department is as focused as we possibly can be on improving reliability for passengers.

None Portrait Several hon. Members rose—
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Lord Grayling Portrait Chris Grayling
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I will give way to the hon. Member for Westmorland and Lonsdale (Tim Farron).

Tim Farron Portrait Tim Farron
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The Secretary of State will be aware that for two weeks in my constituency, there were no services at all along the Lake district—the service into Britain’s second biggest visitor destination. It took a heritage charter train to provide any service over the past few days, and I very much thank all those who were involved in making that happen. Does he agree that this is perhaps a sign that Northern, which is such a colossal franchise across the whole of the north of England, needs to be looked at in a more micro way? For example, we need to look at Cumbria and decide whether the Furness line, the coastal line and the Lakes line could instead be a separate franchise run by a provider that actually wants to run trains on a train line.

Lord Grayling Portrait Chris Grayling
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At the end of all this, I rule nothing out as regards the future structure of franchises. I obviously want to see the Lakes line recover to a normal service as quickly as possible. It has been a disappointment, actually, that the working practices between the employer and ASLEF have meant that it has not been possible to run a conventional service. That may seem extraordinary, but the employer agreements require that if one driver is taken off for training, all the drivers have to be. That is a strange situation. The Labour party talks about wanting to help passengers; it could put a bit of pressure on their union friends to relax some of those agreements now, so that we get the services back into shape as quickly as possible.

None Portrait Several hon. Members rose—
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Lord Grayling Portrait Chris Grayling
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I give way to my right hon. and learned Friend the Member for North East Hertfordshire (Sir Oliver Heald).

Oliver Heald Portrait Sir Oliver Heald (North East Hertfordshire) (Con)
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My right hon. Friend will know of the misery—because I have told him—on my line, with five stations where people’s lives have been blighted over recent weeks, but does he agree that privatisation does have one merit, which is that we can get rid of the operator if there is a huge crisis, and if this is not sorted out very soon, will he take the necessary steps to attack the franchise?

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Lord Grayling Portrait Chris Grayling
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I am absolutely clear that that is the case. Indeed, as I will say in a moment, I have started the process of review to make sure that all options are open.

None Portrait Several hon. Members rose—
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Lord Grayling Portrait Chris Grayling
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I will take two more interventions; then I will make some progress.

Peter Kyle Portrait Peter Kyle
- Hansard - - - Excerpts

I am grateful to the Secretary of State for giving way. The network is incredibly complicated, with a whole range of different providers, both publicly and privately owned. Does he understand that passengers look to the Government in their role of overseeing all the different providers? We do not have an independent board, with a chair and non-executives who scrutinise, challenge and support the network; we look to him as Secretary of State and to the Department. He is entirely reactive and not entirely proactive, which is what passengers need. Does he not accept some responsibility for what has happened—for the lack of oversight, the lack of scrutiny and the lack of challenge while this was happening, rather than just reacting afterwards?

Lord Grayling Portrait Chris Grayling
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I say very simply that the Labour party argues that the railway should be run by the rail experts. When the rail experts advise, as they did in early May, that they are ready for the timetable change—the train companies and Network Rail—it behoves Ministers to take the advice of those rail professionals. Labour is now saying that we should overrule the very people that it said, a few weeks ago, should be running the railways.

None Portrait Several hon. Members rose—
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Lord Grayling Portrait Chris Grayling
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I will give way one more time, to my right hon. Friend the Member for Sevenoaks (Sir Michael Fallon).

Michael Fallon Portrait Sir Michael Fallon (Sevenoaks) (Con)
- Hansard - - - Excerpts

I am really grateful to my right hon. Friend. On the review, whatever the ownership, these are essential public services—in getting our constituents to work and getting their children to school—so will he consider taking stronger powers for himself in times of disruption that would allow him to direct the rail operators to work more closely together or to put in additional stops to help those who simply cannot get to work in the morning?

Lord Grayling Portrait Chris Grayling
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Absolutely; I agree with my right hon. Friend. This is something that we will have to look at very seriously indeed. There are many lessons to learn from all this, but most immediately, we need to get services back into place for passengers. I have been watching the issues at Eynsford and Shoreham in his constituency. It feels as though they are getting a better service than they were but there is still some way to go, and we need to make sure that that is covered.

Debbie Abrahams Portrait Debbie Abrahams
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Will the Secretary of State give way?

Caroline Lucas Portrait Caroline Lucas
- Hansard - - - Excerpts

Will the Secretary of State give way?

Lord Grayling Portrait Chris Grayling
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I will make some progress before I give way again.

I would like to update the House on how the industry is working to improve the reliability of services. On 4 June, Northern introduced a temporary timetable, including a targeted reduction in trains by around 6% to achieve a more deliverable service. Even with this reduction in service, there are still more trains running across the whole Northern network than before the timetable change in May. That does not mean that there are not individual areas that still have very significant problems, and I am very conscious that many passengers are still experiencing significant disruption, but there are signs that the service is stabilising. Over the first two weeks of the reduced timetable, 80% of trains arrived on time and 4% were cancelled or arrived significantly late, which is a significant improvement. This is not nearly good enough, but it is an improvement on what was happening before the introduction of that timetable. Northern is planning to run the timetable until the end of July, when it will review and, we hope, significantly increase the number of trains running, while ensuring continued stability. Stability is the most important thing for passengers so that they know what is expected, when trains are going to come and that they are going to come.

Officials from the Rail North Partnership—it is worth reminding Labour Members that this franchise is managed as a partnership between my Department and the leaders of local authorities in the north. Decisions about it are taken by the partnership board of Transport for the North, and it has been considering how to respond—[Interruption.] The shadow Secretary of State says it does not exist. This is the most devolved franchise in England. Responsibilities for managing and overseeing the franchise are shared through the board of Transport for the North—[Interruption.] Labour Members do not like it, but that is the truth.

GTR is also working to increase the predictability and reliability of journeys on its network. It is working actively to reduce the number of on-the-day cancellations and is now updating its timetables a week ahead. There is clearly still a lot more to do. In too many places, there is very significant disruption, but we have to move things in the right direction. Alternative travel arrangements are in place—for example, for passengers on the Brighton main line, who can have their Thameslink tickets accepted on Gatwick Express. Next month, GTR will introduce a full temporary timetable across its network as the next step to improve reliability and performance for passengers. This will allow GTR to slowly build up services to the new full timetable.

None Portrait Several hon. Members rose—
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Lord Grayling Portrait Chris Grayling
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I will take two more interventions, and then I will make progress to the end of my remarks so that I do not take up too much speaking time.

Debbie Abrahams Portrait Debbie Abrahams
- Hansard - - - Excerpts

I am grateful to the Minister for giving way. He will remember that we met on 4 June, when I relayed some of the real issues that my constituents in Oldham and Saddleworth were facing. He said that we should be seeing improvements to the emergency timetable. I said that I would hold him to it, and he also said that he would look at contingency arrangements if there were not improvements. I went back to Greenfield station last Friday and spoke to constituents who use those trains. They said that they had seen only marginal differences, so will the Secretary of State now commit to bringing these franchises—Northern and TransPennine Express—in-house, and will he ensure that there is compensation for TPE passengers as well?

Lord Grayling Portrait Chris Grayling
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I will talk about compensation in a moment. I have been watching the performance carefully, and there have been some signs of stabilisation, as I say, but there is still a long way to go. [Interruption.] As I just set out, we have seen some stabilisation. I have been looking at the services day by day, and there is still a way to go, but the decline we saw after the timetable change has at least been arrested, and as the hon. Lady herself admits, there have been some improvements, although not nearly enough. I accept that, and I will take away her comments and look carefully at her line again, but there has been at least a stabilisation.

Lord Grayling Portrait Chris Grayling
- Hansard - -

I give way to my right hon. Friend.

Maria Miller Portrait Mrs Miller
- Hansard - - - Excerpts

My right hon. Friend and I share a railway line, the Wessex route, which is under the stewardship of South Western Railway. It will be introducing a new timetable later this year. How will he ensure that the learnings from his independent inquiry are used to inform the implementation of the new timetable to avoid a replication of these sorts of problems in the future?

Lord Grayling Portrait Chris Grayling
- Hansard - -

My right hon. Friend makes an important point—indeed, the shadow Secretary of State said the same. We will not go through with a timetable change in December that is not deliverable. A lot of working is being done right now to see what can and cannot be done. These problems cannot and will not be allowed to happen again. We also have new leadership at Network Rail. Andrew Haines, its new chief executive, stewarded the last major timetable change on the south-western network a decade ago, which went very smoothly. Andrew will be personally responsible for ensuring that any timetable change is deliverable.

I turn now to what happens next. We have seen some stabilisation on the Northern franchise, but I have yet to see any sign that GTR is getting to grips with the issue, so I have commissioned a formal review of the franchise to establish whether it has met and continues to meet its contractual obligations in the planning and delivery of the May timetable, including by ensuring sufficient capability and competence inside the group, and—importantly—to ensure that the owning groups invest sufficiently to minimise further disruption.

My main objective is to ensure there is a plan that I can have confidence in going forward. The review will inform my decisions about how to best use my enforcement powers and the next steps I can take with the owners of the franchise if they are found to be in breach of their obligations. Northern is a matter of ongoing discussion at the Transport for the North board. It has made progress, but not enough, and that is being closely monitored indeed.

The one thing on which I agree with the shadow Secretary of State is the need to put passengers first, and there are two areas where we have to work on that. I encourage all sections of the industry, including the trade unions, to put passengers first. Railway workers across the country are dedicated to providing a high level of service for their passengers and have been on the frontline facing the anger of passengers affected by the timetable disruption, and I am sorry they have had to experience that. I encourage trade union leaders to support their efforts and those of this industry to sort things out for passengers. It is a matter of great disappointment to me that the RMT has again today gone on strike on Northern at a time when the whole industry needs to work together to get the timetable back into shape.

The union makes spurious claims about safety, but trains have operated like this in the UK for more than 30 years. The London underground uses this system, as do trains around the network, and no one at Northern is losing their job or any pay. These changes will modernise the railway in the north and deliver better services for passengers and were signed up to by all the members of the partnership managing that franchise in the north. It is worth adding that on the Southern network, ASLEF, the train drivers union, reached a perfectly sensible agreement that should point the way forward. It is particularly disappointing, therefore, to see the Opposition acting effectively as a mouthpiece for a trade union that regards a Labour party led by the right hon. Member for Islington North (Jeremy Corbyn) as too right wing to affiliate to. I urge him and his colleagues to urge his union supporters to back down from this dispute, stop calling strikes at a time of disruption on Northern and work together to sort out these problems.

I am clear that passengers on these lines have been severely affected by these issues and need to receive additional compensation. My Department is working closely with the TfN board, Network Rail, train operators and stakeholders to introduce the right compensation scheme as soon as possible. It will be funded by the industry. The Rail Minister has already recommended to the board that passengers who buy weekly, monthly or annual tickets on affected Northern and TPE routes will be eligible to claim up to four weeks’ compensation. As part of the scheme, the industry will provide financial support to TfN to deal with other costs that have arisen from the disruption, including on the Lakes line. There will also be a marketing campaign to encourage people to travel by train in the affected areas. I expect the TfN board to confirm the final details of the compensation scheme come its next meeting on 28 June and payments to begin in early July. I will confirm the full details of the compensation package for Thameslink and Great Northern customers on the affected routes at the same time. This will follow approximately the same approach as that on the Southern network. Because of the numbers of people involved, it will take a little longer to begin compensation payments, but I have told GTR that these need to begin before the end of July. Finally, we are considering options to further support the northern economy, and we expect Northern to fund a marketing campaign encouraging travel to affected areas by train when it resumes full operations, particularly on the Lakes line.

Political point scoring does not help passengers. We have seen that today. We need to work to deliver the best outcome for passengers and to improve services urgently. That is what I am focused on, what my Department is focused on and what the Government are focused on.

None Portrait Several hon. Members rose—
- Hansard -

Transport Council

Lord Grayling Excerpts
Thursday 14th June 2018

(6 years, 5 months ago)

Written Statements
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Lord Grayling Portrait The Secretary of State for Transport (Chris Grayling)
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I attended the only formal Transport Council under the Bulgarian presidency (the presidency) in Luxembourg on Thursday 7 June.

The Council reached a general approach on a proposal to revise the current regulation on safeguarding connectivity and competition in international air transport, which is intended to provide protection against subsidisation and unfair pricing practices in the supply of air services from non-EU countries. During the discussion, I emphasised the importance of connectivity, consumer choice and avoiding market distortions.

Following this, the Council adopted the presidency’s proposal for a general approach on the directive on port reception facilities. I supported the aim to further protect the marine environment against illegal discharges of waste from ships and to ensure the efficiency of maritime operation in ports, and recognised that concerns raised by the UK had been addressed.

Next, the presidency presented a progress report on the revised rail passengers’ rights and obligations regulation, which was noted by the Council.

Following this, the Council considered a number of files in phase one of the mobility package (published in May 2017). First, the presidency concluded that the Council had reached a general approach on the compromise proposal on the revised European electronic road tolling services (“EETS”) directive, on which I voiced my support. Next, when considering the proposed directive on hired goods vehicles, the presidency observed it did not have sufficient support for a general approach and concluded that the Council was unable to adopt the proposal. In the discussion, I noted that the UK supported the general approach, but acknowledged that other member states wanted further discussion.

Over lunch, Ministers discussed the financing of infrastructure projects in the EU and connectivity in the western Balkans.

Following this, the presidency presented progress reports on the remaining elements of phase one of the mobility package, covering proposals designed to improve the clarity and enforcement of the EU road transport market (the “market pillar”), and proposals on the application of social legislation in road transport (the “social pillar”). I outlined the outstanding areas of concern for the UK and committed to working constructively toward a general approach and deal moving forward.

Next, the presidency presented two progress reports on proposals from phase two of the mobility package (published November 2017). The presidency provided updates on the proposal to amend the current combined transport directive, which aims to encourage and facilitate modal shift away from the roads and onto alternative means of transport, and to reduce congestion, and the clean and energy-efficient vehicles directive.

Under any other business, several items were discussed. Notably, Commissioner Bulc presented the third and final mobility package proposals, which focused on safety and technology in transport. Commissioner Bulc also presented an action plan on military mobility; in reply to Luxembourg, she confirmed that a range of actions were being pursued under the EU cycling strategy and, in reply to Finland, set out plans for an upcoming public consultation on summertime arrangements. Furthermore, Sweden noted the 18 and 19 June summit on connected and autonomous vehicles in Gothenburg; and Austria presented transport plans for its incoming presidency of the Council of the European Union.

Regarding bilateral engagement, I met with Commissioner Bulc and my ministerial counterparts from Austria, Belgium, Bulgaria, Denmark, Finland, France, Germany, Netherlands, Malta, Poland and Romania.

[HCWS765]

Contingency Liability: Notification

Lord Grayling Excerpts
Monday 11th June 2018

(6 years, 5 months ago)

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Lord Grayling Portrait The Secretary of State for Transport (Chris Grayling)
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I have today laid before Parliament a departmental minute describing three contingent liabilities relating to a tripartite deal between Heathrow Airport Limited (HAL), First Greater Western Limited (FGW) and the Department for Transport.

Unfortunately, due to the urgent need to finalise the deal and the confidential commercial nature of the negotiations it was not possible to notify Parliament of the particulars of the liability and allow the required 14 days’ notice prior to the liabilities going live. A delay would have resulted in higher HS2 costs and an increased scheduling risk impacting on the December 2026 opening date for phase 1.

The main element of the deal is a service agreement between FGW, HAL and Heathrow Airport Operating Company (HEOC) for the continuation of non-stop rail services between Paddington and Heathrow Airport. Under this agreement FGW will assume operation of Heathrow Express services. Although this is an agreement between private sector companies, there are significant benefits to the Department, in particular, savings generated from not building a replacement depot for Heathrow Express rolling stock at Langley (the land on which the current depot is situated at Old Oak Common is needed by HS2 for the construction of the high speed railway).

In order to conclude the deal, and secure departmental/HS2 benefits, the Department needed to offer indemnities in relation to three risks that the parties were unwilling or unable to assume or manage. The financial exposure is not high—a conservative estimate is c£12 million. But they are unusual and outside the Department’s normal course of business.

The three contingent liabilities are: first, indemnifying FGW against the cost of any delay to delivery of new rolling stock required to operate Heathrow Express services. The Department’s exposure is estimated to be £2.25 million; second, indemnifying FGW against the cost of any redundancies following the transfer of staff, mainly drivers, from HAL to FGW. The cost is estimated to be c£3.2 million; third, an indemnity against contagion from a wider industrial relations dispute—nationwide or franchise wide. The exposure is estimated to be £6.8 million.

The Treasury approved these liabilities before they were activated. However, if any Member of Parliament has concerns, he/she may write to me within the next 14 parliamentary sitting days. I will be happy to examine their concerns and provide a response.

Attachments can be viewed online at: http://www. parliament.uk/business/publications/written-questions-answers-statements/written-statement/Commons/2018-06-11/HCWS748.

[HCWS748]

Contingent Liability

Lord Grayling Excerpts
Wednesday 6th June 2018

(6 years, 5 months ago)

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Lord Grayling Portrait The Secretary of State for Transport (Chris Grayling)
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I have today laid before Parliament a departmental minute describing a contingent liability relating to a blight agreement between me, as Secretary of State for Transport, and Heathrow Airport Limited (HAL).

If the proposed airports national policy statement is designated, land in the location identified as potentially suitable for the development of the north-west runway scheme becomes blighted. Owners of qualifying land (predominately owner-occupiers of private housing) within that location would be able to serve a blight notice on the Secretary of State, which if valid would, in effect, both authorise and oblige the Secretary of State to purchase the land.

In order to avoid my department having to cover the cost of blight claims I, as Secretary of State, have entered into an agreement with HAL under which HAL assume the financial liability for successful claims. In the event the proposed NPS is designated, the cost of meeting blight claims will need to be met by my Department if the agreement were for some reason ineffective to transfer liability.

The maximum estimated contingent liability for the blight claims is £160 million, though actual gross liability is likely to be much lower, c. £5 million to £20 million, as most owners of qualifying property are thought likely to wait for the more generous offer of 125% from HAL, available following the granting of any development consent.

The Treasury approved this liability and the chairs of the Public Accounts Committee and the Transport Committee were notified of this contingent liability by letter of 16 May due to the confidential nature of the contingent liability at that time. A period of fourteen sitting days beginning on 21 May has been provided for issues or objections to be raised, and final approval to proceed with incurring the liability will be withheld pending an examination of the objection.

[HCWS739]

EU Transport Council

Lord Grayling Excerpts
Wednesday 6th June 2018

(6 years, 5 months ago)

Written Statements
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Lord Grayling Portrait The Secretary of State for Transport (Chris Grayling)
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I will attend the only formal Transport Council under the Bulgarian presidency (the presidency) taking place in Luxembourg on 7 June.

The Council is expected to reach a general approach on a proposal to revise the current regulation on safeguarding connectivity and competition in international air transport, which is intended to provide protection against subsidisation and unfair pricing practices in the supply of air services from non-EU countries. The Government places great importance on effective competition and liberalisation as a key enabler of international connectivity and considers that the proposed general approach is satisfactory.

Following this, the Council will be considering a general approach on a proposed directive on port reception facilities. The proposal aims to achieve a higher level of protection of the marine environment by reducing waste discharges at sea, as well as improved efficiency of maritime operations in port by reducing the administrative burden and by updating the regulatory framework. In negotiations, the UK has been generally supportive of the aims of the proposal but required clarification and consideration of the impacts to ensure that the final directive does not disproportionality impose additional or unnecessary burdens. We have also been successful in securing compromise and flexibility within the proposal, to ensure that the improvements to the directive do not unduly burden small ports and small ships.

Next, the Council will consider a number of files in phase one of the mobility package (published in May 2017). Firstly, the presidency will give a progress report focusing on proposals designed to improve the clarity and enforcement of the EU road transport market (the ‘market pillar’), and proposals on the application of social legislation in road transport (the ‘social pillar’).

The Council is expected to reach general approaches on two of the proposals in the Package. The first of these is a proposal to revise the current directive on the European electronic road tolling service (‘EETS’). The UK views the proposals for a revised EETS directive favourably. the proposal contains provisions that will assist the enforcement of toll and road user charge collection. The second is a proposal on goods vehicles hired without drivers, which is intended to make it easier for undertakings to hire vehicles registered in a member state other than that where the undertaking is established. This is not a matter with significant practical implications for the UK given the relative rarity of operators hiring goods vehicles in this way in the UK. We are content for both of these general approaches to be agreed.

Following this, the presidency has prepared two progress reports on proposals from phase two of the mobility package (published November 2017). The presidency will provide an update on the state of play thus far on proposals to amend the current directive on combined transport, which aims to encourage and facilitate modal shift away from the roads and on to alternative means of transport and reduce congestion, and the proposal to broaden the scope of the current directive on clean and energy efficient vehicles, where the UK is leading the transition to cleaner road transport.

Next, there will be a progress report on the proposed revision to the regulation on rail passengers’ rights and obligations. The UK shares the commission’s objective of strengthening the rights of rail passengers. We therefore support in principle the proposal’s aim of standardising and improving passenger rights, including by improving access for people with disabilities or reduced mobility.

Under any other business, the commission will present phase three of the mobility package (published May 2018), followed by information on the action plan for military mobility, and an update on the implementation of the EU cycling strategy. The delegations from Sweden and Greece will then provide information on automated and connected driving and functioning of the fair competition framework in the aviation sector within the EU, respectively. The commission will then provide information on the state of play for EU summer-time arrangements, and finally, the Austrian delegation will present the transport work programme of their forthcoming presidency of the Council of the European Union.

[HCWS737]

Airports National Policy Statement

Lord Grayling Excerpts
Tuesday 5th June 2018

(6 years, 5 months ago)

Commons Chamber
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Lord Grayling Portrait The Secretary of State for Transport (Chris Grayling)
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With permission, Mr Speaker, I would like to make a statement about the proposed expansion of Heathrow airport.

The Government have a clear vision: to build a Britain fit for the future and a Britain with a prosperous jobs market and an economy that works for everyone. That is why I come to the House to mark an historic moment. Today I am laying before Parliament our final proposal for an airports national policy statement, which signals our commitment to securing global connectivity, creating tens of thousands of local jobs and apprenticeships, and boosting our economy for future generations by expanding Heathrow airport. It is an example of how the Government are taking forward their industrial strategy.

As you know, Mr Speaker, taking such a decision is never easy. This issue has been debated for half a century. My Department has met local residents and fully understands their strength of feeling. But this is a decision taken in the national interest, based on detailed evidence. In 2015, the independent Airports Commission concluded that a new north-west runway at Heathrow was the best scheme to deliver additional capacity, and in October 2016 we agreed. We ran two national consultations during 2017 and received more than 80,000 responses. All the points raised have been carefully considered, and today we are publishing the Government’s response.

To ensure fairness and transparency we appointed an independent consultation adviser, the former Court of Appeal judge, Sir Jeremy Sullivan. Our draft NPS was scrutinised by the Transport Committee, and I thank the Chair of the Committee and her team for the thoroughness of their work. I was pleased that they, like me and my colleagues in the Government, accepted the case for expansion and concluded that we are right to pursue development through an additional runway at Heathrow. We welcome and have acted on 24 out of 25 of its recommendations. Our response to the Committee is also being published today.

This country has one of the largest aviation sectors in the world, contributing £22 billion to our GDP, supporting half a million jobs, servicing 285 million passengers and transporting 2.6 million tonnes of freight last year. The time for action is now. Heathrow is already full, and the evidence shows that the remaining London airports will not be far behind. Despite Heathrow being the busiest two-runway airport in the world, its capacity constraints mean that it is falling behind its global competitors, impacting the UK’s economy and global trading opportunities.

Expansion at Heathrow will bring real benefits across the country, including a boost of up to £74 billion to passengers and the wider economy, providing better connections to growing world markets, and increasing flights to more long-haul destinations. Heathrow is a nationally significant freight hub, carrying more freight by value than all other UK airports combined. A third runway would enable it to nearly double its current freight capacity.

In addition—this is crucial—this is a project with benefits that reach far beyond London. We expect up to 15% of slots on a new runway to facilitate domestic connections across the UK, spreading the benefits of expansion to our great nations and regions. As well as new routes, I would expect there to be increased competition on existing routes, giving greater choice to passengers. I say very clearly that regional connectivity is one of the key reasons for the decision we have taken.

I recognise the strong convictions that many Members of this House and their constituents have on this issue, and the impacts on those living in the local area. It is for that reason that we have included strong mitigations in the NPS to limit those impacts. Communities will be supported by up to £2.6 billion towards compensation, noise insulation and improvements to public amenities— 10 times bigger than under the 2009 third runway proposal. This package is comparable with some of the most generous in the world and includes £700 million for noise insulation for homes and £40 million to insulate schools and community buildings. The airport has offered 125% of the full market value for homes in the compulsory and voluntary purchase zones, plus stamp duty, moving costs and legal fees, as well as a legally binding noise envelope and more predictable periods of respite.

For the first time ever, we expect and intend to deliver a six-and-a-half-hour ban on scheduled night flights. But my ambitions do not stop there. If the House agrees and the NPS is designated and the scheme progresses, I will encourage Heathrow and airlines to work with local communities to propose longer periods of respite during a further consultation on night flight restrictions. We will grant development consent only if we are satisfied that a new runway would not impact the UK’s compliance with air quality obligations. Advances in technology also mean that new planes are cleaner, greener and quieter than the ones they are replacing.

Earlier this year a community engagement board was established, and we appointed Rachel Cerfontyne as its independent chair. It will focus on building relations between Heathrow and its communities, considering the design of the community compensation fund, which could be worth up to £50 million a year, and holding the airport to account when it comes to delivering on its commitments today and into the future.

There has been much debate about the costs of this scheme. Our position could not be clearer: expansion will be privately financed. Crucially, expansion must also remain affordable to consumers. We took a firm step when I asked the industry regulator, the Civil Aviation Authority, to ensure the scheme remains affordable while meeting the needs of current and future passengers. This process has already borne fruit, with the identification of potential savings of up to £2.5 billion. I am confident that that process can and should continue, that further cost savings can be identified and that the design of the expansion can continue to evolve to better reflect the needs of consumers. That is why I have recommissioned the Civil Aviation Authority to continue to work with industry to deliver the ambition that I set out in 2016 to keep landing charges at or close to current levels. That work will include gateway reviews, independent scrutiny and benchmarking of proposals, which I know are of paramount importance to British Airways, Virgin Atlantic and the wider airline community.

I want to talk now about scheme delivery and ownership. The north-west runway scheme put forward by Heathrow was selected by the Government following a rigorous process. Since then, Heathrow has continued to make strong progress, having already consulted on its scheme design and airspace principles earlier this year. Some stakeholders have suggested that we should now look again at who delivers expansion. While I, and we, will always retain an open mind, my current assessment is that caution is needed at this stage. Heathrow is an operational airport under a single management, and I am clear that it is currently the only credible promoter that could deliver this transformational scheme in its entirety.

I welcome the Civil Aviation Authority’s April consultation, which expects Heathrow to engage in good faith with third parties to ensure that expansion is delivered in a way that benefits the consumer. However, that needs to be balanced against the need for timely delivery, and that is why my Department will be working closely with Heathrow to enable delivery of the new runway by its current target date of 2026.

Heathrow is already Britain’s best-connected airport by road and rail. That will be further strengthened by future improvements to the Piccadilly line, new links to Heathrow through Crossrail, connections to High Speed 2 via an interchange at Old Oak Common and plans for western and southern rail access to the airport. On 24 April, I met the industry and financial backers who can potentially come forward with plans to deliver the new southern rail access to the airport.

Even with today’s announcement, a new operational runway at Heathrow is still a number of years away. The Airports Commission recommended that there would also be a need for other airports to make more intensive use of their existing infrastructure, and we consulted on that in the aviation strategy call for evidence last year.

Apart from Heathrow, I would also like to confirm today that the Government support other airports making best use of their existing runways. However, we recognise that the development of airports can have negative as well as positive local impacts, including on noise levels. We therefore consider that any proposals should be judged on their individual merits by the appropriate planning authority, taking careful account of all relevant considerations, and particularly economic and environmental impacts.

Furthermore, in April we set out our next steps, which will see us work closely with industry, business, consumer and environmental groups to develop an aviation strategy that sets out the long-term policy direction for aviation to 2050 and beyond, while addressing the changing needs and expectations of passengers. It will set out a framework for future sustainable growth across the United Kingdom, how we plan to manage our congested airspace, and how we plan to use innovative technology to deliver cleaner, quieter and quicker journeys for the benefit of passengers and communities. Airspace modernisation has to be taken forward irrespective of the decision on the proposed new runway, and to do so we expect multiple airports across the south of England to bring forward consultations on their proposals on how to manage the airspace around their locations.

Returning to Heathrow, the planning system involves two separate processes: one to set the policy—effectively outline planning consent—which is our national policy statement, and then, if the House votes in favour of it and it is then designated, a second process for securing the detailed development consent that the airport will require. The next steps would therefore be for Heathrow to develop its plans, including details of the scheme design and airspace change, and hold a further consultation to allow the public a further say on the next phase of Heathrow’s plans and additional opportunities to have their voices heard. Any application for development consent will of course be considered carefully and with an open mind, based on the evidence provided. The process includes a public examination by the independent Planning Inspectorate before a final decision is made.

Alongside the NPS today, I have published a comprehensive package of materials that I hope and believe will enable Members of the House to make an informed decision ahead of the vote. It is very comprehensive, and I hope that it will provide answers to the questions that Members will have.

I hope that Members will feel that the scheme is crucial to our national interest and that we need to work together to deliver it in order to create what I believe is an absolutely vital legacy for the future of this country. I hope that Members across the House will get behind the plan and support this nationally strategically important project, and I commend this statement to the House.

Andy McDonald Portrait Andy McDonald (Middlesbrough) (Lab)
- Hansard - - - Excerpts

I thank the Secretary of State for advance notice of his statement.

Today’s statement has been a long time coming. We have had 11 years of consultation and nine years since the expansion was given the green light. The Secretary of State came to the House yesterday to explain the calamitous implementation of new rail timetables. He now stands at the Dispatch Box today and expects the House to accept what he says about the most significant of infrastructure projects. I am sorry, but this Secretary of State has form. The only reason he is at the Dispatch Box is that the Prime Minister is too weak to sack him. I regret that he simply does not enjoy the confidence of the House. [Interruption.] Government Members complain, but I did not hear them shouting their support for him yesterday. In fact, the loudest criticisms came from Members on their Benches.

Labour will consider proposed expansion through the framework of our well-established four tests: expansion should happen only if it can effectively deliver on the capacity demands; if noise and air quality issues are fully addressed; if the UK’s climate change obligations are met in their entirety; and if growth across the country is supported. We owe it to future generations to get all those factors absolutely right. If the correct balance is not found, the law courts will quite rightly intervene.

I commend the superb work of the Chair and members of the cross-party Transport Committee. Their report into the airports national policy statement published in March left no stone unturned. Their support for approving the NPS is explicitly conditional upon 25 recommendations being addressed. The Secretary of State says that he has “acted on” 24 of the 25 recommendations. What does that mean? Are they going to be conditions or simply aspirations and expectations? For example, the Committee concluded that there was a high risk of the NPS breaching air quality compliance. Furthermore, the Department for Transport has not published a comprehensive surface access assessment, so it is impossible to demonstrate that the target of no more airport-related traffic can be met. His statement today takes that issue no further forward.

The Committee highlighted that there was almost no mention of potential cost and investment risk. What guarantees can the Government provide that the high-cost risks will not end up being covered by the public purse? How can the business case for expansion ensure that passenger benefits are met? The Secretary of State says he will keep charges close to current levels. What sort of assurance is that? Further uncertainties remain about the NPS as originally drawn, on noise analysis and flightpath modelling. It remains to be seen whether the revised NPS adequately addresses those and other issues.

The Secretary of State says that he will encourage Heathrow to work with communities on longer respite periods. What teeth are there in any of these proposals or promises? His claims about the benefits of new technologies have to be based on real evidence and not some fanciful expectation of future advances. Some of us have not forgotten his empty promises on dual fuel trains, which we are now told do not exist. He says he intends and expects 15% of slots to be for domestic connections. How will that be secured? Intentions, expectations and encouragements are simply not enough.

It is imperative that the Government provide guarantees to the House that the recommendations and conditions established by the Transport Committee will be embedded in the revised NPS. Yesterday reminded Members across the House that the assurances of this Secretary of State are anything but cast-iron. It is absolutely essential that the Government embed the Select Committee’s recommendations in their revision of it. I remind the House that the Committee says very clearly that the planning process should move to the next stage only if its concerns, as detailed in its excellent report, are properly addressed by the Government in the final NPS. It is our task to scrutinise the revised NPS in full detail in the coming days. Labour will faithfully follow our framework tests and follow the evidence across the 25 recommendations. We will not rely on the Secretary of State’s assurances, which are sadly not worth the Hansard they are printed on.

Lord Grayling Portrait Chris Grayling
- Hansard - -

I think you will agree, Mr Speaker, that that was a rather disappointing response. The one thing the shadow Secretary of State did not say was whether he actually supported the expansion of Heathrow airport. I happen to believe that it is strategically the right thing for our country, for business and for jobs. I very much welcome the positive encouragement I have received from Members across the House in the past few months. I regard this project as being vital to Members of Parliament in the north of England, Wales, Northern Ireland, Scotland and the south-west—I see the links to Newquay airport as being one of the real opportunities here.

The shadow Secretary of State raised several detailed points. There is a huge amount of material—thousands of pages—that he and others can read through, but let me pick up on just a few of the items he raised. He mentioned air quality. The runway cannot be opened if it does not meet air quality rules, but I have been clear all along that the air quality issues around Heathrow are much more than issues of the airport itself; they are typical of the air quality issues that face metropolitan areas in this country and elsewhere in the world, which is why my right hon. Friend the Environment Secretary has brought forward an air quality plan. In addition, Heathrow Airport is consulting on a low emissions zone that would make it impossible, without a substantial charge, to bring a higher-emission vehicle into the airport when the runway is open—assuming that the parliamentary and development processes go according to plan. So that has to be addressed; it is not an optional extra for the airport—it has to happen.

The shadow Secretary of State made a point about night flights. That has to be and will be a planning condition. He also asked about the Select Committee’s recommendations. About half have been embedded in the NPS; the remaining half will either happen at the development consent order stage or are requirements for the CAA to follow up on and deliver. We have accepted the recommendations, however, and will follow faithfully the Select Committee’s wishes to make sure that its recommendations are properly addressed at each stage of the process. As I said earlier, this is a multi-stage process, and the Committee’s recommendations referred not just to the NPS but to the subsequent stages.

The shadow Secretary of State asked about landing charges, which, of course are regulated by the CAA. I have been clear that landing charges have to stay pretty much at current levels in real terms. This cannot be an excuse for the airport to hike its landing charges substantially. That would not work for consumers or our economy. Equally, the commitments on night flights have to be addressed. This project will not have credibility if such promises to the local community are not properly fulfilled.

The shadow Secretary of State asked about investability. We have had the investability and delivery date independently assured. I have also talked to Heathrow shareholders, who have emphasised to me their commitment to this project. I am absolutely of the view that the project can and will be delivered. We simply have to look at the price at which slots for Heathrow airport sell on the open market to realise that this is one of the world’s premier airports and enormously attractive to international airlines and that expanding its route network will deliver jobs all around the country.

That is the most important thing for everyone in the House to bear in mind, whether they are in Scotland, the north of England, the south-west, Wales or Northern Ireland, and we should not forget our Crown dependencies and Gibraltar either. They also depend on air links to the UK. This project is a way of making sure that our citizens—the people we represent—and the businesses they work in have access to the strategic routes of the future that they will need. If we are to be a successful nation in the post-Brexit world, we will need advances such as this one that can make a real difference to the future of this country.

I am disappointed, therefore, that the Labour party has not said that it supports expansion in principle. I do support it, as do Members in all parts of the House, and in the coming days we will have a vote—we have 21 sitting days before the deadline for that vote. In the time ahead, I and my officials will happily talk to parliamentary colleagues about the details and, I hope, reassure anyone with doubts that this is the right project for the country.

Lord McLoughlin Portrait Sir Patrick McLoughlin (Derbyshire Dales) (Con)
- Hansard - - - Excerpts

I welcome my right hon. Friend’s announcement—the report that the coalition Government asked Howard Davies to produce was very comprehensive, and he has acted on it—but will he say a little more about how he will ensure that the costs are properly controlled? He is absolutely right to say that at the end of the day Heathrow has the great development opportunity that it wanted, but that development must involve reasonable costs that do not impose ever growing pressures on both operators and passengers.

Lord Grayling Portrait Chris Grayling
- Hansard - -

My right hon. Friend has made a crucial point. That is, obviously, a matter of great importance to the airlines. They do not want fares to rise, and nor do we. This should be a development that leads to more choice for passengers, as well as more competition and, as a result, lower fares. One of the benefits of expanding the network will be for the United Kingdom, because we need more operators within the UK, and we may be able to achieve better competition on routes into Heathrow.

I have statutory powers, which I have already used on two occasions, to enable the Civil Aviation Authority to monitor the costs of the project to ensure that they are driven down. I renewed those powers recently, and I will continue to do so whenever necessary.

Alan Brown Portrait Alan Brown (Kilmarnock and Loudoun) (SNP)
- Hansard - - - Excerpts

I thank the Secretary of State for giving me early sight of his statement.

This has been another polarising issue, and aspects of the UK Government’s approach in the past and the delaying tactics have not helped matters. However, I welcome the progress that is being made, and the fact that a vote appears to be imminent. The option of Heathrow expansion was recommended by the Airports Commission. It was also backed by the Transport Committee, as we have heard, and I pay tribute to its work in scrutinising the national policy statement.

To be fair, Heathrow has engaged fully with the Scottish Government, and has signed a memorandum of understanding in relation to commitments to Scotland. It refers to a construction logistics hub, and, for selfish constituency reasons, I should like that to be based at Prestwick airport. There is also a commitment to a £10 million route development fund, and a commitment to promoting Scotland in the future. I must be honest: for me, supporting expansion at Heathrow from a Scottish perspective was initially counter-intuitive. However, all but one of the Scottish airport operators support it. So do the various Scottish chambers of commerce, because they recognise the business benefits that it can bring to Scotland, including up to 16,000 new jobs. That helped to sway me, and the Scottish Government have reiterated their support.

Let me ask the Secretary of State some questions about his statement. He spoke of benefits for nations and regions, and an expected

“15% of slots on a new runway to facilitate domestic connections across the UK”.

However, he has still not explained how he will ensure that that happens. Will conditions be imposed, and will he consider Scotland’s needs? How will he ensure that what is proposed for Heathrow will increase passenger numbers at Scottish airports? He said that he had recommissioned the CAA to work with the industry to keep charges close to their current levels, but he did not make it clear how there could be certainty that future charges would be kept under control. What will happen if Heathrow cannot commit itself to the longer period that the Secretary of State has just thrown into the mix, and what will he do to ensure that there is more transparency on new flight paths? Finally, given the UK Government’s failures to date and their defeats in court in relation to air quality, what will be done to ensure that air quality impact assessments are robust and that the correct control measures are introduced?

Lord Grayling Portrait Chris Grayling
- Hansard - -

I am grateful to the hon. Gentleman, the Scottish Government and the Scottish National party for their support. I think it important for us to ensure that Scotland is well served by the expansion of Heathrow. I think the hon. Gentleman understands, given the support that has come from the Scottish regional airports and the Scottish business community, that by providing more strategic routes for the United Kingdom from Heathrow we will provide links to important new developing markets around the world.

The hon. Gentleman asked about the protection of slots. We are considering what is the best mechanism. It seems that the public service obligation mechanism may be the best, but I want the most robust legal mechanism to operate by the time we reach the development consent order process, in order to protect the allocation of slots to regional connections in the United Kingdom. I do not want, and will not accept, circumstances in which slots somehow disappear and are allocated to a long-haul route rather than a UK route. This must be a project that benefits the whole United Kingdom. As for passenger numbers, our forecasts show that virtually all regional airports will continue to grow, and I expect the hon. Gentleman to see growth at Scottish airports as well as on routes to and from Heathrow.

The hon. Gentleman asked about the setting of charges. The CAA sets the charges, and it has absolute regulatory power to set them at the level that is appropriate for the airport. It has the teeth to deliver that at the moment. He asked about the respite issue. Let me make it clear that the night flight ban is an absolute requirement. We would reconsider that only if both the airport and the local communities agreed that something different should be done. The local communities would have to come back to us, with representatives of the airport, and say, “We would like to do something slightly different.” From the Government’s point of view, the ban is a non-negotiable element.

As for the hon. Gentleman’s final question, given that there are opponents of the scheme, I think it highly likely that it will be challenged in the courts. We have done exhaustive work, and there is a huge amount of material for the House to consider. We are following a statutory process, and only if there is a supportive vote in the House of Commons can the project go ahead. I hope that that is enough to set the project on the right path.

Justine Greening Portrait Justine Greening (Putney) (Con)
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This decision is not only wrong for the UK and its competitiveness; it is wrong for the London communities who will be blighted by the pollution from an expanded Heathrow. The Secretary of State says that the runway cannot be opened unless air quality conditions are met. The document “Heathrow Airport Ltd: statement of principles” contains a cost recovery clause for Heathrow in case the project does not proceed following this decision. Can the Secretary of State confirm that taxpayers might have to pick up a bill for billions of pounds?

Lord Grayling Portrait Chris Grayling
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The project cannot pass the development consent order stage unless the airport can demonstrate that it will follow air quality guidelines. We have been very clear about that, which is why Heathrow is consulting on a potential low-emission zone. The whole point about air quality, however, is that it is a broader problem, for London and other cities, which will need to be dealt with well before 2026. That is why the Government have issued air quality proposals, and that is why we are determined to see changes in society that tackle the air quality issue.

Lilian Greenwood Portrait Lilian Greenwood (Nottingham South) (Lab)
- Hansard - - - Excerpts

I welcome the statement, and the Secretary of State’s acceptance of the points made by the Transport Committee. We look forward to examining the detail in the final national policy statement. We said that an expanded Heathrow must deliver for the whole of the UK, not just the south-east of England. Can the Secretary of State explain how public service obligations can guarantee that a new runway will result in more domestic routes which will be distributed fairly across the regions and nations of the UK, and can he tell us how this proposal fits in with his Department’s plans for high-speed rail connectivity between cities in the midlands and the north?

Lord Grayling Portrait Chris Grayling
- Hansard - -

Let me deal with the last point first. I think that we will need both. Creating a rapid link between our great cities is a necessary part of doing business domestically, and that will mean connectivity to airports as well. However, I think that the real benefit of expanding the runway is the linkage that results from the ability to fly, for example, from Edinburgh to Heathrow to Shanghai if a direct flight is not available. The local market will simply not be big enough for a regional airport to deliver the direct route.

As for the public service obligation process, we will introduce the strongest measures to ring-fence those slots. We will ensure that they cannot simply be taken away, and that should mean that they must be provided at a cost that is affordable for UK domestic aviation. If routes that are strategically necessary for the United Kingdom require PSO support financially, I have no doubt that this Government, and future Governments, will wish to ensure that those routes are provided for as well. We already apply that to some key routes.

Damian Green Portrait Damian Green (Ashford) (Con)
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I congratulate my right hon. Friend on pushing through a decision that probably should have been made 10 years ago. Does he agree that to gain both the economic and full environmental benefits of this decision a significant increase will be required in the rail links into Heathrow—not just the ones already planned, but some that are still some way off? Will he also expand on what he said in his statement about the new rail lines planned from different parts of the country so that people have proper public transport access to what will be a hugely expanding airport?

Lord Grayling Portrait Chris Grayling
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I absolutely agree with my right hon. Friend and thank him for his supportive comments. On the mix of rail services that will service this new runway, if Parliament gives it the go-ahead, in the short term there will be the arrival of Crossrail services and the upgrade of the Piccadilly line. The HS2 station at Old Oak Common will also open. In the investment plans for control period 6, we have planned funding to develop a western rail access into Heathrow for connections to Reading and the west country. We are in the process of discussing with private sector investors proposals for the southern rail access which will connect the south-western rail networks into Heathrow airport. In addition, we are beginning work on an option that is very relevant to you, Mr Speaker, which would take the Chiltern line into Old Oak Common—there is already a line that connects into Chiltern—and as we see more development on the Oxford-Cambridge corridor, that will provide an additional route into Heathrow from that important growth area. I think this is a pretty holistic package of planned rail improvements.

Vince Cable Portrait Sir Vince Cable (Twickenham) (LD)
- Hansard - - - Excerpts

How does the Secretary of State reconcile his claims about regional connectivity with the fact that Heathrow expansion is opposed by all the largest regional airports—Edinburgh, Manchester, Birmingham, East Midlands and Bristol—as well as those in the south-east, Stansted and Gatwick? Since these communities are represented by Members from different parties, does he agree that it would be appropriate to have a free vote on the NPS when it is put before Parliament?

Lord Grayling Portrait Chris Grayling
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It is clearly up to every individual party to decide how they will approach this vote, but my experience is not what the right hon. Gentleman has just communicated to me: my experience is that around the United Kingdom there is huge support from regional airports and, crucially, regional business groups for the expansion of Heathrow airport. We have looked at the projections, and they show growth at almost all of our regional airports, and I do not have the sense of opposition from the regional airports that the right hon. Gentleman is describing.

Roger Gale Portrait Sir Roger Gale (North Thanet) (Con)
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I welcome my right hon. Friend’s statement, but, without wishing to compromise him in any decisions he may have to take in the future, I cannot help noticing that he has indicated very clearly that it will take some years for there to be wheels on tarmac and a new runway at Heathrow. In the interim, we have to make the best use of existing runway capacity, and, in that context, and post Brexit, I hope the Government will look favourably on maximising the use of available existing runways in Kent.

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Lord Grayling Portrait Chris Grayling
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I am well aware of my hon. Friend’s interest in these issues and look forward with interest to seeing any proposals that come forward.

Ruth Cadbury Portrait Ruth Cadbury (Brentford and Isleworth) (Lab)
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How can the Secretary of State say that the cost of expansion will not fall on either taxpayers or airline passengers when the airport and airlines are not prepared to fund the essential transport infrastructure around Heathrow that is needed to address the air quality and appalling traffic congestion we already have, and when the Transport Committee report in March found that the environmental impacts on London and the south-east have not been fully monetised and need to be addressed?

Lord Grayling Portrait Chris Grayling
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As the hon. Lady will find when she reads the updated NPS document, that latter point is one of several recommendations from the Committee that we have addressed, and we have added additional information to the NPS.

On the hon. Lady’s comments about access to the airport, I have just given a firm commitment that we should deliver a package as broad as that to support this. One Select Committee recommendation was to strengthen the wording about western and southern rail access, and that has happened; we are very committed to both of those. This is a broad-ranging package that will transform surface access to Heathrow.

Andrew Jones Portrait Andrew Jones (Harrogate and Knaresborough) (Con)
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I welcome my right hon. Friend’s statement. Does he agree that as Heathrow is the UK’s hub airport and this expansion will bring forward new routes, improved connectivity to Heathrow will bring important benefits to the people and economy of Yorkshire and other parts of the northern powerhouse?

Lord Grayling Portrait Chris Grayling
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I completely agree with my hon. Friend. One of the disappointments recently has been a reduction in the number of flights from Leeds Bradford airport to Heathrow. Creating more capacity at Heathrow will create greater competition and allow new entrants to regional markets, and will allow some of the routes that have not been there in recent years to reappear.

Caroline Lucas Portrait Caroline Lucas (Brighton, Pavilion) (Green)
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It beggars belief that the words “climate change” did not pass the Secretary of State’s lips once during the statement. In his Department’s most recent aviation forecast there is no scenario in which expansion at Heathrow is compatible with meeting the Government’s own commitments under the Climate Change Act 2008 to limit air passenger growth to 60% by 2050. And those same projections imply that if this runway is approved aviation will take up over half of the UK’s entire carbon budget by 2050, which is absurd. Given that the Committee on Climate Change has said “Don’t use international offsetting,” can the Secretary of State explain how on earth this proposal is compatible with our climate change objectives?

Lord Grayling Portrait Chris Grayling
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As the hon. Lady will know, the Airports Commission looked at this issue very carefully and formed the view that we could meet our climate change objectives and expand Heathrow. Of course in the aviation sector there is a transformation of the technology that means aircraft are much more fuel-efficient and therefore emit less, so technology is helping us move towards achieving the right approach.

Dominic Grieve Portrait Mr Dominic Grieve (Beaconsfield) (Con)
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I welcome my right hon. Friend’s statement, and many in my constituency will benefit economically and directly from this expansion and are supportive of it. Does my right hon. Friend recognise, however, that the issues around air quality, and indeed pollution generally, are not just confined to aircraft movements, but are also affected by the entire traffic management in the area around Heathrow? He will be aware that parts of my constituency, particularly Iver, are seriously blighted by the existence of Heathrow as it is at present, and if this development is to go ahead there will have to be the necessary infrastructure investment to alleviate that.

Lord Grayling Portrait Chris Grayling
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I absolutely agree with my right hon. and learned Friend. He will be aware that we have had a number of toings and froings over the months about whether it will be necessary to build a depot at Langley; that has now been resolved and that depot is not now happening, which will simplify the process of delivering western rail access, and I hope will ease many of the pressures. One of the factors that will have an impact in my right hon. and learned Friend’s constituency and the large number of people who travel to work at Heathrow is that western rail access will not only deliver better connectivity to the west country but will make it easier for staff to get the train to work.

Rupa Huq Portrait Dr Rupa Huq (Ealing Central and Acton) (Lab)
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It may be long overdue but this is the wrong decision, and it flies in the face of what the current Prime Minister has previously said, not to mention the last one with his “No ifs, no buts,” no third runway comment. So does this U-turn, like the abandoning of the feed-in tariff and like the embrace of Hinkley Point, show that this Government’s green dalliance and “hug a husky” phase is now well and truly over?

Lord Grayling Portrait Chris Grayling
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I gently say to the hon. Lady that I appreciate that this is a difficult decision for communities immediately around Heathrow and the Members who represent them. We cannot take a decision like this one without having an impact, and we will do everything we can to work with the airport to make sure that impact is minimised. The hon. Lady talks about previous commitments, and I simply remind her that we fought a general election last year on a manifesto commitment to pursue this process, and that is what we are doing.

Lord Swire Portrait Sir Hugo Swire (East Devon) (Con)
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Having discussed this for almost a decade, it will be almost another decade before the first plane takes off from the new runway, so when the Secretary of State said that the time for action is now it was hardly an overstatement. He is right to claim that this will benefit regional airports such as Exeter in my constituency, Newquay, Bristol and others. I suggest, however, that rather than getting local authorities to come up with expansion plans, this should be the responsibility of the Government if they want a fully integrated aviation system. Also, while Heathrow and Gatwick will see certainly more regional flights using them as a hub, that will again raise the issue of air passenger duty, and I urge the Secretary of State to talk to the Chancellor of the Exchequer soon about taking this opportunity to revamp the whole APD issue.

Lord Grayling Portrait Chris Grayling
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I have no doubt that the Chancellor will have heard what my right hon. Friend has said about APD, and I am sure he will not be alone in making that point in the run-up to the next Budget.

On the planning process, we think it is better that decisions on smaller expansion projects—typically under 10 million passenger expansions—are taken locally in full light of the impacts on local communities, both positive in terms of the economic generation but also other impacts on communities around them. Where a project is bigger than that, we think we should continue to use the NPS process; we think that provides the right balance, ensuring that local decisions are taken about projects of an appropriate size, but that if a future project is on a much more substantial scale this House continues to play the part it does today.

Louise Ellman Portrait Mrs Louise Ellman (Liverpool, Riverside) (Lab/Co-op)
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I welcome this statement, and I support expansion at Heathrow; it is absolutely essential for the national interest and for international connectivity. This plan is supported by Liverpool’s John Lennon airport. How can the Secretary of State guarantee that the promised link between the expanded Heathrow airport and Liverpool will materialise?

Lord Grayling Portrait Chris Grayling
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First, I thank the hon. Lady for her clear statement of support. She has a distinguished record in this area. She and I served on the Transport Committee when we were first elected. She is a very experienced person in the transport world, and I am grateful to her for her support and for sharing my view of the strategic importance of this decision. On protecting the right of access, Heathrow has made a number of specific commitments. Ultimately, this will require airlines to be able and willing to fly those routes, but my view is that the opening up of Heathrow to new carriers—some of the low-cost carriers that have done well elsewhere and that dominate the other airports—will ensure that those routes happen. I will have to ensure that the slots are there for those carriers to fly to and that, in places where there is a social need but not an economic one, we continue to provide support through the public service obligation system.

Lord Goldsmith of Richmond Park Portrait Zac Goldsmith (Richmond Park) (Con)
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The Secretary of State has already emphasised the preparedness of Heathrow, but the truth is that we do not know how the third runway can be reconciled with air pollution limits or with our climate change targets, as has already been mentioned. We do not know how many communities will be brought under the new flight paths and how many hundreds of thousands of people will be affected by that. We do not know how many tens of billions of pounds of public money will be needed to facilitate access to and from Heathrow, and we do not even know how Heathrow will finance this project. What we do know, following a dramatic revision by the Government of the benefits to the economy and to connectivity, is that Heathrow is now on a par with Gatwick. Can my right hon. Friend understand why, for so many people, this looks not only like a blank cheque being given by this Government to a foreign-owned multinational but like a whole book of cheques signed by our constituents?

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Lord Grayling Portrait Chris Grayling
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I very much respect my hon. Friend’s view on this. He and I have not shared the same view, but I very much respect the vigour with which he has argued his case, not just over the past few weeks but over a long period. On the economic value of Heathrow versus Gatwick, it has been shown—and as the documentation published today shows—that once we get past the 2060s, the economic case for Gatwick catches up with and overtakes the case for Heathrow. Between now and then, however, the economic case for expanding Heathrow is stronger. We have used the methodology that the Airports Commission chose to use, and it does not factor in the significant strategic importance of freight at Heathrow, which is not counted. Heathrow is the biggest port by value in the United Kingdom, and this element will also deliver a huge economic benefit for the UK.

Lord Beamish Portrait Mr Kevan Jones (North Durham) (Lab)
- Hansard - - - Excerpts

I welcome today’s statement and support expansion at Heathrow. Newcastle international airport is vital for the north-east economy, and the Secretary of State has already mentioned the support in the regions for Heathrow expansion because of increased connectivity from airports such as Newcastle. May I kindly suggest that, before the vote, he publishes the exact details of how those slots can be maintained, because a lot of that regional support is conditional on getting those additional slots?

Lord Grayling Portrait Chris Grayling
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I am happy to provide any further information that hon. Members require, and I am grateful to the hon. Gentleman for his support today. As he will remember, when we first announced our provisional decision last year, I made my first visit to Newcastle airport. It is a very good airport, and the leadership there told me how this project would help them to develop their business and help the economy of the north-east. I will certainly look to provide extra information, but I would say that some of the detail will become clear further along the process. At the moment, the advice I have is that we are probably best to use the public service obligation requirements to guarantee that those slots are available. Of course, the airlines will have to be willing to fly them, but as I said a moment ago, in a more competitive market in which new entrants are able to compete—as they do all around the United Kingdom but not at Heathrow—we will see routes appear that should have been there a long time ago. They are not there now, but they will be in the future.

Paul Beresford Portrait Sir Paul Beresford (Mole Valley) (Con)
- Hansard - - - Excerpts

I congratulate my right hon. Friend and completely support this decision, which has been a very long time coming. There will be efforts to try to delay the process, and he has mentioned the possibility of judicial reviews. What assurance can he give me that he and the Government will be absolutely behind this project, to overcome the hurdles and ensure that we meet the programme? The European airports are not going to wait, and we do not want to lose the opportunity that this will give us.

Lord Grayling Portrait Chris Grayling
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We have taken careful legal advice as we have been through this exhaustive process, and I want to pay tribute to my team at the Department for Transport for doing a fantastic job of assembling a vast amount of material for the House to study before the vote and to demonstrate the case that we are making today. If we are challenged in the courts, it is essential that we can demonstrate that we can make our case, but this is a matter for our elected Parliament. This House will decide whether I should designate the national policy statement, and I very much hope that that will carry weight as we go through the rest of the process.

Chi Onwurah Portrait Chi Onwurah (Newcastle upon Tyne Central) (Lab)
- Hansard - - - Excerpts

Such a significant expansion in aviation capacity raises major environmental and ethical concerns, but given the recommendations of the Transport Committee, I believe that this is the right option, provided that it delivers for regional economic growth. Businesses and residents in Newcastle deserve just as much access to direct flights as those in the south, but given that network economics make that impossible, what additional capacity will the Secretary of State guarantee for Newcastle airport and for how long, regardless of how he makes that work?

Lord Grayling Portrait Chris Grayling
- Hansard - -

The important thing to say is that the reservation of slots for our regional airports is not a time-limited thing; it is a permanent feature. We would not countenance putting in place a legal mechanism that could be eroded away over time. That is what has happened in recent times: regional connections to Heathrow have diminished in number, and regional routes have been replaced by long-haul routes, but I can give an absolutely categorical assurance to the House that the legal mechanism that will be put in place will prevent that from happening again.

George Freeman Portrait George Freeman (Mid Norfolk) (Con)
- Hansard - - - Excerpts

I congratulate Ministers on finally making a tough decision that puts the national interest, prosperity and business confidence ahead of politics—an approach that I hope will apply in our other big decisions. I echo the views of the former Secretaries of State, my right hon. Friends the Members for Derbyshire Dales (Sir Patrick McLoughlin) and for Putney (Justine Greening), on the importance of cost control. Does the Secretary of State agree that the Heathrow hub proposal, which would extend over the M25 and be cheaper, quieter, quicker and less environmentally damaging, has much to commend it, both at Heathrow, where it was rejected by shareholders who perversely will make more money from a more expensive scheme, as well as at other airports around the country? Would he encourage such a proposal for other airports?

Lord Grayling Portrait Chris Grayling
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A lot of innovation went into the Heathrow hub proposal, and we considered it very carefully when we reached our initial recommendation. There were a number of drawbacks to it. For example, it would give much less respite for people around the airport by operating in the way that was proposed. However, I have no doubt that its promoters, who are smart people and who have developed some innovative ideas, will be using those ideas to encourage change in other places around the world and hopefully building an international business for themselves.

Mike Gapes Portrait Mike Gapes (Ilford South) (Lab/Co-op)
- Hansard - - - Excerpts

At last! After years being wasted under the coalition Government, we now at last have a Government who are taking a grip on this issue. This decision should have been taken years ago. With Crossrail coming, my constituents in east London and people in Essex and Kent will greatly benefit from this decision, and I welcome it. Can the Secretary of State assure me, however, that there will be no further delays because of divisions in his Cabinet?

Lord Grayling Portrait Chris Grayling
- Hansard - -

First, I thank the hon. Gentleman for that resounding statement of support. This matter was discussed at the Cabinet this morning. The Airports sub-Committee met earlier this morning and reached its view, and the Cabinet was informed of it. I can tell him that the Cabinet gave almost entirely universal support for it.

Crispin Blunt Portrait Crispin Blunt (Reigate) (Con)
- Hansard - - - Excerpts

I welcome my right hon. Friend’s statement, particularly his outlining of the five new rail lines that would support Heathrow’s expansion, but I contrast that with there being no proposals to support any new rail capacity at Gatwick. It is on the busiest commuter line in the country, and he is only too aware of the problems there today. The Opposition spokesman gave a masterclass in how to avoid making a decision if one is in that political position, but does my right hon. Friend agree that if we are to discharge our duty to future generations, having analysed and consulted on the proposal to death, now is the time to make a decision?

Lord Grayling Portrait Chris Grayling
- Hansard - -

Now is definitely the time to take a decision. I agree that transport links to Gatwick need to improve, which is why Gatwick station is one of the projects that we are working on with the airport at the moment, but I am grateful for my hon. Friend’s support.

Phil Wilson Portrait Phil Wilson (Sedgefield) (Lab)
- Hansard - - - Excerpts

The north-east is a global-facing region, and links to an international hub are critical for its economy. A third runway at Heathrow is a strategic necessity and essential to Durham Tees Valley airport, which is in my constituency, and Newcastle airport. The Secretary of State says that 15% of slots will be for domestic connections, but how can he guarantee that? Will domestic slots be ring-fenced? What are the implications for Durham Tees Valley airport?

Lord Grayling Portrait Chris Grayling
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Durham Tees Valley is one of the airports that Heathrow has identified as a potential beneficiary of the expansion, and I am clear that there will be legally binding mechanisms in place to reserve slots for regional airports. That is part of the core rationale for making this decision, and the project would have much less credibility without it, so I have every intention of ensuring that we deliver those protections for our regions.

Robert Goodwill Portrait Mr Robert Goodwill (Scarborough and Whitby) (Con)
- Hansard - - - Excerpts

Although not before time, this decision is great news not only for UK plc but for regional airports such as Leeds Bradford, which have too long been hampered by a lack of slots into our major hub airports, and for customers who have had to connect at airports such as Schiphol or Charles de Gaulle, which plays into the hands of our competitors. I read in the newspaper that there may be some barriers to the actual construction, so may I offer my services as someone with some experience of driving bulldozers?

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Lord Grayling Portrait Chris Grayling
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I will speak to Heathrow airport this afternoon and get someone to send my right hon. Friend a job application. However, whether the project will use some of the heavy equipment that he has at his disposal is a different question.

Seema Malhotra Portrait Seema Malhotra (Feltham and Heston) (Lab/Co-op)
- Hansard - - - Excerpts

Past polling suggests that my constituents are, on balance, in principle in favour of Heathrow’s expansion due to the support that will be provided to small and medium-sized enterprises and the employment that is dependent on Heathrow. However, they are rightly concerned about noise, pollution, respite and night flights—the issues that have been discussed today—and confidence in Heathrow is not high, based on past performance. Flight paths are a significant issue, so will the Secretary of State ensure the publication of any proposals as soon as possible? That information should be available to Members before we vote. Will he also confirm that the criteria on which he will assess southern rail access will consider the regeneration benefits in addition to access from Surrey and from Waterloo?

Lord Grayling Portrait Chris Grayling
- Hansard - -

On the last point, my view is that we just need to make the southern rail project happen. That is why we are looking to get the private sector to do it. It is a project that can be delivered by the private sector, and private consortia are interested in doing so. As for flight paths, it is necessary to work off the back of Heathrow’s initial design work to consider the requirements for them. That involves setting out the exact geography of our airports and then mapping what we need around them. That is the process, and a major reorganisation of our airspace will happen in the early 2020s. That would have had to happen anyway, and this proposal will bed into that.

Mary Robinson Portrait Mary Robinson (Cheadle) (Con)
- Hansard - - - Excerpts

Manchester airport is a key transport hub, handling almost 28 million passengers a year and driving the economic progress of the northern powerhouse. How will my right hon. Friend ensure that the north feels the benefits of this announcement?

Lord Grayling Portrait Chris Grayling
- Hansard - -

Manchester will be in an interesting position, because it will be connected with Heathrow by air and by high-speed rail. The linkage between the two airports will become a strong strategic benefit for the UK. I expect Manchester to have more flights to Heathrow, but I also expect more trains linking the two to provide a real interchange between Britain’s two most substantial airports.

Richard Burden Portrait Richard Burden (Birmingham, Northfield) (Lab)
- Hansard - - - Excerpts

Connecting the regions and nations of the UK to opportunities and markets abroad has to be about more than how much they can have routes through a national hub in the south-east—however important that national hub is. Does the Secretary of State agree that airports such as Birmingham, Manchester, Edinburgh and East Midlands for freight are international gateways in their own right, not simply regional airports as he described them? While every Minister to whom I have spoken about this has said that they want to support all the UK’s international gateways, few of them have said what they will actually do to make that a reality, to utilise existing capacity and to ensure that the potential of those airports grows in the time it will take, which could be a decade or more, to build the new runway—if indeed that goes ahead. What will the Secretary of State do about that?

Lord Grayling Portrait Chris Grayling
- Hansard - -

We have a thriving aviation sector, and I am unsure whether regional airports need ministerial help to grow because they are doing a pretty good job already. Every time I visit a regional airport, I am surprised by the range of international destinations. Cardiff airport has recently launched a route to Qatar, and a whole variety of different European, transatlantic and other international routes have been developed at our regional airports. I expect that to continue, but the reality is that, apart from some of the most strategically important routes, there is often not enough of a market in a regional area to justify the launch of a route. The purpose of a hub airport is effectively to assemble a market to justify such routes and strengthen the whole UK.

David Jones Portrait Mr David Jones (Clwyd West) (Con)
- Hansard - - - Excerpts

I congratulate my right hon. Friend on his statement today. Given that Heathrow is the UK’s biggest port by value for exports outside the European Union, does he agree that its expansion will be crucial to British businesses all over the country in the post-Brexit world?

Lord Grayling Portrait Chris Grayling
- Hansard - -

Absolutely. It is important that Heathrow is planning to source services, products and manufacturing from all around the UK. As the hon. Member for Kilmarnock and Loudoun (Alan Brown) said earlier, we want this project to create not just connections for the whole UK but opportunities for businesses around the country.

Wera Hobhouse Portrait Wera Hobhouse (Bath) (LD)
- Hansard - - - Excerpts

Why is the Secretary of State so much in support of the unpopular expansion of Heathrow airports when airports such as Bristol are looking to expand, which would make much more environmental and economic sense to my constituents in Bath and to people across the south-west? As the hon. Member for Birmingham, Northfield (Richard Burden) pointed out, regional airports are international airports in their own right, so why the obsession with London airports?

Lord Grayling Portrait Chris Grayling
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This is not about one thing or the other. Bristol airport has done a fantastic job of building up an international network, serving more than 100 destinations, and it is a great airport and a great success story. However, that does not remove the need for a hub airport to deliver strategic connections that only really operate from a single centre, with a market assembled from several destinations within the UK and, indeed, internationally to make such routes viable.

Henry Smith Portrait Henry Smith (Crawley) (Con)
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While I acknowledge the Heathrow runway expansion decision and welcome a decision finally being made, will the Secretary of State assure me that that will not detract from the necessary infrastructure investment at Gatwick airport, particularly, as my hon. Friend the Member for Reigate (Crispin Blunt) said, investing in upgrading the station and rail capacity into Gatwick?

Lord Grayling Portrait Chris Grayling
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My hon. Friend is right. Indeed, as he said yesterday, we have two important pieces of engineering work coming up that I hope will increase the reliability of that railway line, which has already seen a big increase in capacity. Gatwick station also needs to be addressed. The proposals that I have announced today about local decisions on smaller expansions will allow airports around the country to enter into dialogue with local authorities about their future without all such decisions being taken at a national level.

Angela Smith Portrait Angela Smith (Penistone and Stocksbridge) (Lab)
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I welcome the Secretary of State’s statement. When the expansion proposal comes before the House in the next few days, I will support it not only because it is in the national interest but because Heathrow is committed to a robust UK supply chain built on four construction hubs throughout the country. Will the Secretary of State commit to supporting that supply chain in every way necessary to ensure that the jobs created by expansion benefit my constituents as well as constituents in the south-east?

Lord Grayling Portrait Chris Grayling
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Absolutely. One of the key benefits is that this multi-billion pound project will serve the entire United Kingdom. Both the airport plan and the supply chain that supports it will create thousands of jobs and thousands of new apprenticeships. The supply chain will be across the United Kingdom, and it will create jobs and opportunities, in the Year of Engineering, for a new generation of engineers.

Iain Stewart Portrait Iain Stewart (Milton Keynes South) (Con)
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As a member of the Transport Committee, I thank my right hon. Friend for accepting our recommendations. As the champion of the Oxford-Milton Keynes-Cambridge corridor, I am heartened by his proposal to link the Chiltern line into Heathrow. I urge him to bring forward those plans as soon as possible, because that connectivity will help to realise the Government’s wider ambitions for Britain’s brain belt.

Lord Grayling Portrait Chris Grayling
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I absolutely agree with my hon. Friend on that latter point. I am working with HS2 to make sure that provision is made in the development of Old Oak Common to put in those Chiltern line platforms. The Oxford-Cambridge corridor is crucial to the development of our economy. It will need connections into our premier hub, and this is the best way of achieving that.

Andy Slaughter Portrait Andy Slaughter (Hammersmith) (Lab)
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This is not even a robust plan for London, and it damages and stunts regional airports. The Secretary of State has given no details about flight paths, and has no coherent plans for air quality, surface access, jobs or controlling public subsidy. He is well known for his reverse Midas touch but, on this issue, should he not listen to the right hon. Member for Putney (Justine Greening)? She said this morning that we need a UK-wide airport strategy, not this expensive and incompetent botch job.

Lord Grayling Portrait Chris Grayling
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I know that the hon. Gentleman has a particular view on this proposal, so I did not expect to find him supportive of it. We will work very hard to ensure that the areas affected by expansion are treated as decently as possible and supported by what will be a world-leading package of community support, which I hope will mitigate the impact of this project of national strategic importance.

Julian Knight Portrait Julian Knight (Solihull) (Con)
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I support the statement and the Secretary of State’s careful, consultative approach. Birmingham airport, which is on the border of my constituency, currently runs well under capacity—by about 30% to 40%. Does he believe that this announcement will improve that situation over time, and if so, how?

Lord Grayling Portrait Chris Grayling
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There is capacity at a number of our regional airports, which continue to grow. Birmingham airport will continue to grow. If we expand Heathrow, there is no doubt Birmingham airport will face greater competitive pressure than many of our other airports, but that does not mean that it will cease to be a success story. Birmingham airport is already a great asset for the west midlands, and that will continue. It has attracted a number of important international routes in recent times, and I have no doubt that that will continue.

Lord Austin of Dudley Portrait Ian Austin (Dudley North) (Lab)
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For all the talk of balancing economic growth and boosting the regions, it is the same old story—the bulk of investment, spending, jobs and benefits is always in London and the south-east. Why could the Government not show a bit more imagination by expanding Birmingham airport and getting behind the regions? Birmingham airport is actually the best connected airport in the country. It is on the motorway network and, if HS2 were taken to Heathrow, it would be quicker for passengers to get from Heathrow to Birmingham than it now is for them to get from Paddington to Heathrow. That would mean that we in the midlands would get our fair share of the jobs, the investment and the benefits.

Lord Grayling Portrait Chris Grayling
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I make it clear that I expect there to be benefits and jobs all around the country, including in the west midlands. Birmingham airport is a very good airport. I have no doubt that it will continue to attract passengers and routes, and to be a success story for the west midlands—that is the way it should be. There are particular reasons why the United Kingdom needs to build on its principal strategic airport hub, but that will not prevent other airports from growing. The measures I have announced today will enable those airports to do so.

Steve Double Portrait Steve Double (St Austell and Newquay) (Con)
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I warmly welcome the Secretary of State’s announcement of the long-overdue decision to expand our national hub airport in the national interest. I assure him that this announcement will be warmly welcomed across the south-west, particularly in Cornwall.

I thank the Secretary of State for his specific reference to Newquay airport and for his commitment to ensuring that slots are available for regional airports. In that vein, does he agree that a direct link from Newquay to Heathrow would offer huge opportunities for greater exports from Cornwall and for inward investment into Cornwall? I ask for his support to ensure we can achieve that.

Lord Grayling Portrait Chris Grayling
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Newquay is one of the principal future beneficiaries of expansion. There is a real opportunity to increase air links to a part of the country that is quite distant in existing transport terms. I am strongly of the view, as is my hon. Friend, that Newquay has the potential to flourish with Heathrow expansion, and I will happily work with him to do everything we can to make sure that happens.

Gavin Shuker Portrait Mr Gavin Shuker (Luton South) (Lab/Co-op)
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The project will likely span multiple Parliaments, and certainly successive Administrations, so does the Secretary of State agree that it would be frankly incredible for a party of government not to have a clear position on this proposal when it comes to be voted on in Parliament? Will he therefore confirm the whipping arrangements for his own party? Can he suggest any mechanisms that might allow some individuals to take a different view while maintaining collective responsibility?

Lord Grayling Portrait Chris Grayling
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It is for each party to decide its own whipping arrangements—I have no doubt that is what will happen. On the timetable, I expect to reach the completion of the DCO process late in this Parliament. I hope we can get going on building this runway in the early 2020s, if the House gives its consent over the next couple of weeks. I hope all parties that aspire to govern this country in the post-Brexit world will unite behind a proposal of vital strategic importance.

Laurence Robertson Portrait Mr Laurence Robertson (Tewkesbury) (Con)
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I congratulate the Secretary of State on at last moving this issue forward. Does he agree that the delays, which have been caused by successive Governments, have caused the UK to lose a lot of business? For example, Dublin is already getting on with expanding its airport. I know that there are restrictions and difficulties, but may I ask him—so that this country does not continue to lose air business—to move this issue on as quickly as possible?

Lord Grayling Portrait Chris Grayling
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I give my hon. Friend that assurance. Like many other Members, my view is that this decision should have been taken a long time ago. At least we are taking it now, and I want to get on with the job.

Jonathan Edwards Portrait Jonathan Edwards (Carmarthen East and Dinefwr) (PC)
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Transport for London has estimated that it will cost some £20 billion to link the third runway to London. Will the Department be designating that as UK spend or as England-only spend? If the Secretary of State cannot answer that question now, will he make sure that the Government officially outline their position before we are expected to vote?

Lord Grayling Portrait Chris Grayling
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As I have said before, I do not recognise that figure. We have a well-designed plan to deliver the transformation of surface access to Heathrow—some privately funded and some already in the investment pipeline—such as on Crossrail and HS2, all of which is reflected in the settlements that exist across the United Kingdom for capital spending.

Ben Bradley Portrait Ben Bradley (Mansfield) (Con)
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I welcome my right hon. Friend’s statement. Does he agree that the chance to promote skills in construction and engineering out in the regions, particularly at the manufacturing hub near my Mansfield constituency, is a massive chance both to provide the kinds of high-quality jobs for which my constituents are crying out and to raise aspiration and social mobility in such areas across England?

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Lord Grayling Portrait Chris Grayling
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My hon. Friend is absolutely right. This is the Year of Engineering, and projects such as the expansion of Heathrow and HS2 have the ability to provide opportunity and excitement for the new generation of engineers that we will need if we are to have a successful economy. This project is much more than a transport project; it is about the development of skills and job opportunities for the whole United Kingdom.

Marsha De Cordova Portrait Marsha De Cordova (Battersea) (Lab)
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Londoners, especially those such as my constituents who live under Heathrow flight paths, already face unacceptable levels of air pollution and noise pollution, not to mention the grave risks we all face from climate change. Why does the Secretary of State think that noise pollution, air pollution and climate change are not important enough issues to influence Government policy?

Lord Grayling Portrait Chris Grayling
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We have carefully considered issues such as noise, air quality and climate change, which was why we commissioned the Airports Commission to do its detailed work, and why we have updated that work so that the House has all the information it needs. Of course, the other thing we have to take into account is the potential for our economy, which is why I am grateful—perhaps unusually—to the Unite trade union and Len McCluskey, whom the hon. Lady knows well, who this morning again expressed his support for the project.

John Howell Portrait John Howell (Henley) (Con)
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The airspace review is a crucial part of the success of this project. Together they can help to limit stacking, so will the Secretary of State say something about how these reviews dovetail?

Lord Grayling Portrait Chris Grayling
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The CAA and NATS have already started work on airspace changes and the consultation on them. This is vital because it can have two big effects. First, it makes the future management of our airspace possible. At the moment, airspace is extremely congested, with conflicts between airports, and we need to modernise and to use new technology. Secondly, it enables a change to the management of aircraft as they come into the UK’s airspace in a way that can substantially affect stacking, which is also a huge benefit. The proposal of the third runway does not change the need for reform; it simply adapts that reform to fit the more detailed design as it emerges.

Stephen Timms Portrait Stephen Timms (East Ham) (Lab)
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I welcome the Secretary of State’s decision. He referred to local employment and apprenticeships in his statement. What is his Department’s assessment of the increase in employment at Heathrow, both during the construction phase and in the long term?

Lord Grayling Portrait Chris Grayling
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The estimates fluctuate somewhat but, in essence, we are talking about the number of additional jobs created being in the high tens of thousands. Obviously this depends on how we measure and estimate them, as well as on the rate of expansion of the airport, but about 100,000 extra jobs should be created.

Justin Tomlinson Portrait Justin Tomlinson (North Swindon) (Con)
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There is strong support for the proposal from Swindon businesses and residents, particularly hard-working families looking to book holidays. May I also stress the importance of the western rail link, as it would give my constituents direct access to Heathrow in less than one hour?

Lord Grayling Portrait Chris Grayling
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My hon. Friend is right about the importance of the proposal in terms of not only connections to places such as Swindon, Bristol, the south-west and south Wales but, as I said earlier, providing better opportunities for staff who live more locally to get to work on the train. I absolutely accept the importance of the project. It is part of our investment plans for the next control period on the railways, and my expectation is that it will be open in good time for the runway.

Luke Pollard Portrait Luke Pollard (Plymouth, Sutton and Devonport) (Lab/Co-op)
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The Secretary of State will know from my questions in the Transport Committee that I wanted his Department and Heathrow to do much more about getting people to the airport by public transport in a two-runway world, let alone in a three-runway world. We need to see the money, not just hear the soundbites, so will he assure us that western rail access is now fully funded? How much of the funding will be contributed by Heathrow?

Lord Grayling Portrait Chris Grayling
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As far as I am concerned, that is fully funded, and we intend to extract as much money as possible from Heathrow for all the improvements—it needs to make a substantial contribution to this, but the project will be delivered.

Jeremy Quin Portrait Jeremy Quin (Horsham) (Con)
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May I warmly welcome this comprehensive statement? I wish to pick up on a point that my right hon. Friend made about freight transportation, because I believe that was omitted from the otherwise excellent Davies commission. Will he confirm that, and will he also confirm that adding in freight transport significantly increases the economic value of Heathrow?

Lord Grayling Portrait Chris Grayling
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Yes, I was surprised that that was not taken into account, but the Davies commission did not seek to monetise the freight potential of an expanded Heathrow and factor that into its findings. We have carefully followed the same methodology as it used, because we judged it to be wrong to change methodology mid-stream, but the numbers do not include freight. Heathrow is our biggest freight airport by value—it is our biggest freight port by value. It is central to the economy of many parts of the UK, ranging from the north of Scotland, from where smoked salmon products are shipped internationally via Heathrow, to more local businesses in the London area. My hon. Friend is absolutely right to say that freight is a crucial part of this decision.

Kevin Foster Portrait Kevin Foster (Torbay) (Con)
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I warmly welcome the statement. Let me be clear that expanding Heathrow is about not just London, but Torbay—it is about businesses getting out to markets, and seafood being shipped out to China every day through this port. Will my right hon. Friend reassure me that we will now get on with this and very quickly have the vote on the Floor of this House so that we show just what support the plan has?

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Lord Grayling Portrait Chris Grayling
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The answer to that is most definitely yes. As a result of the statutory process, we have to get on with the vote—it will happen shortly. Clearly the business managers will announce the detailed dates of the business, but I want to get on with this as well.

Andrew Bowie Portrait Andrew Bowie (West Aberdeenshire and Kincardine) (Con)
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On behalf of the businesses and people of the north-east of Scotland, I thank the Secretary of State for his announcement. Sectors including UK oil and gas, as well as economic growth in my part of the world, are reliant on numerous slots to the south-east and beyond, so I thank him. To put this beyond any doubt, will he confirm that the decision will mean a growth in connectivity for Scotland, and for Aberdeen in particular?

Lord Grayling Portrait Chris Grayling
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Absolutely. Aberdeen and the oil industry are clearly one potential beneficiary from all this. The oil industry is to be found in disparate parts of the world, and we have enormous expertise in Aberdeen. The routes that people in the oil industry need to take would not automatically be served by a regional airport, which is why a better hub airport with more international connections is a particular benefit to industries such as his in Aberdeen.

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Huw Merriman Portrait Huw Merriman
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Thank you, Mr Speaker. It is a pleasure to get through your stacking system ahead of Air Corby.

I thank the Secretary of State because, as a member of the Transport Committee, it is a delight for me to see the Committee, across party, collaborating with the Government—I think that this is the best of it. Our recommendation 22 dealt with the Lakeside Energy from Waste plant. Will he confirm that there is still a commercial opportunity for a more up-to-date waste management capability to be purchased? That is the only recommendation that has not been followed by the Government.

Lord Grayling Portrait Chris Grayling
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I had a lot of sympathy with what the Select Committee was saying, but we did not accept that recommendation because the plant is not an asset categorised as strategically important for the UK. Clearly discussions are already taking place between the airport and the owners about what should happen to that plant. Had it been of strategic importance, we would absolutely have accepted the Committee’s recommendation, but the truth is that it is not, so this really is a matter for the different organisations involved.

Tom Pursglove Portrait Tom Pursglove
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It is always good to get through at last call, Mr Speaker.

What difference does my right hon. Friend think this decision will make to our international trading prospects and to UK steel supply chains? Let me also tell him that in Corby we certainly want one of these new construction hubs.

Lord Grayling Portrait Chris Grayling
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I suspect there will be quite a lot of competition for those hubs. I have no doubt that Corby will do a great job in attracting business as a result of this project. Its particular importance relates to the events of the past few years. We will shortly be entering the post-Brexit world. If this country is to demonstrate that we will remain an outward and internationally focused trading nation, such a project will be of vital strategic importance to us. Whatever anyone’s view might be about the Brexit process, I hope that all Members will accept that we are much better off demonstrating to the world that we want to be connected, involved and trading post Brexit. As a result, I hope that people across the House will get behind the proposal to make sure that it is carried, when it comes to a vote, and that we send a powerful message to the world that Britain is in business.

Justine Greening Portrait Justine Greening
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On a point of order, Mr Speaker.

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John Bercow Portrait Mr Speaker
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My advice in the first instance is to see, here and now, whether the Secretary of State can provide any illumination on that matter. Depending on what he says, I might have further advice for the right hon. Lady.

Lord Grayling Portrait Chris Grayling
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Further to that point of order, Mr Speaker. The formal process in statute is that the vote has to take place within 21 sitting days of my tabling the NPS. That took place this morning, so the vote has to take place within 21 sitting days of now. The exact date will be a matter for the business managers, but we will want to ensure that Members have sufficient time to look at the material tabled today. As for written questions, I will make sure that my Department expedites responses to issues raised by Members so that they can study them in good time before the vote.

John Bercow Portrait Mr Speaker
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I am grateful to the Secretary of State for that response to the point of order raised by the right hon. Member for Putney (Justine Greening). Flowing from it, my perhaps unsurprising advice to her is that she should press ahead with her tabling of questions with dispatch. In the light of the commitment that the Secretary of State has given, it is to be expected that colleagues interested in this matter, and the Chair, will keenly attend to the speed and comprehensiveness with which ministerial replies to those, in effect, urgent questions are provided.

Rail Timetabling

Lord Grayling Excerpts
Monday 4th June 2018

(6 years, 5 months ago)

Commons Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Lord Grayling Portrait The Secretary of State for Transport (Chris Grayling)
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I am pleased to take the earliest opportunity to update the House on the recent difficulties around the timetable changes, in particular on some GTR and Northern routes.

I want to be absolutely clear: passengers on these franchises are facing totally unsatisfactory levels of service. It is my and my Department’s No. 1 priority to make sure that the industry restores reliability for passengers to an acceptable level as soon as possible. I assure the passengers affected that I share their frustration about what has happened, and that I am sorry that this has taken place.

The timetable change was intended to deliver the benefits to passengers of major investments in the rail network, meaning new trains, including all trains on the Northern and TransPennine Express networks, being either new or refurbished; the great north rail project infrastructure upgrades worth well over £1 billion, such as those at the Ordsall Chord and Liverpool Lime Street; and in the south-east, through the Thameslink programme, new trains and improved stations, including London Bridge and Blackfriars.

The huge growth in passenger numbers in recent years demanded expanded routes, services and extra seats, but this timetable change has resulted instead in unacceptable disruption for the passengers who rely on these services. The most important thing right now is to get things back to a position of stability for those passengers, but it is also vital to understand what has happened and why we are in the situation we are in today. The circumstances of the failures are different on the Northern and GTR networks.

The investigations that are being carried out right now are providing more information about what has gone wrong, but it is worth being clear that the industry remained of the view until the last moment that it would be able to deliver the changes. That is the bit that everyone will find hard to understand and it is why there has to be a proper investigation into what has taken place.

On Northern, which is co-managed through the Rail North Partnership by Transport for the North and my Department, early analysis shows that the key issue was that Network Rail did not deliver infrastructure upgrades in time, in particular the Bolton electrification scheme, with damaging consequences. This forced plans to be changed at a very late stage, requiring a complete overhaul of logistics and crew planning. The early analysis also shows that on GTR’s Thameslink and Great Northern routes, the industry timetable developed by Network Rail was very late to be finalised. That meant that train operators did not have enough time to plan crew schedules or complete crew training, affecting a range of other complex issues that impact on the service on what is already a highly congested network.

It is also clear to me that both Northern and GTR were not sufficiently prepared to manage a timetable change of this scale. GTR did not have enough drivers with the route knowledge required to operate the new timetable. Neither Northern nor GTR had a clear fall-back plan.

In GTR’s case, the process of introducing the new timetable has been overseen for the past two years by an industry readiness board, comprising some of the most senior people in the industry, which told me it had been given no information to suggest the new timetable should not be implemented as planned, albeit with some likely early issues as it bedded down. This body was set up specifically to ensure that all parts of the rail network—Network Rail, GTR, other train operators—were ready to implement these major timetable changes. It should have been clear to it that some key parties were not ready. It did not raise this risk.

The Department received advice from the Thameslink readiness board that, while there were challenges delivering the May 2018 timetable—namely, the logistics of moving fleet and staff—a three-week transition period would allow for minimal disruption. My officials were assured that the other mitigations in place were sufficient and reasonable. Indeed, as few as three weeks before the timetable was to be implemented, GTR itself assured me personally that it was ready to implement the changes. Clearly this was wrong, and that is totally unacceptable.

The rail industry has collectively failed to deliver for the passengers it serves. It is right that the industry has apologised for the situation we are currently in and that we learn the lessons for the future, but right now the focus should be on restoring the reliability of its service to passengers. This morning, I met again with chief executives of Network Rail, GTR and Northern—the latest in a series of meetings that I and my Department have been holding with these organisations—and the rail Minister has today been to Network Rail’s control centre at its Milton Keynes headquarters. We have made it clear to them all that the current services are still not good enough. I have also demanded that Network Rail and the train operator work more collaboratively across the industry to resolve the situation, where necessary by using resources from other train operators to support the recovery effort. Officials in my Department are working around the clock to oversee this process. We have strengthened resources in both the Department and Rail North Partnership, which oversees the Northern franchise, to hold the industry to account for improving services.

I would like to be able to tell the House that there is an easy solution or that the Department could simply step in and make the problems passengers are facing go away—if there were a way of doing so, I would do it without a moment’s hesitation—but ultimately the solution can only be delivered by the rail industry. These problems can only be fixed by Network Rail and the train operators methodically working through the timetable and re-planning train paths and driver resourcing to deliver a more reliable service. It is for such reasons that I am committed to unifying the operations of track and trains, where appropriate, to ensure that we do not encounter such problems in the future.

Northern Rail has agreed an action plan with Rail North Partnership that is focused on improving driver rostering so as to get more trains running as quickly as possible; rapidly increasing driver training on new routes; providing for additional contingency drivers and management presence at key locations in Manchester; and putting extra peak services into the timetable along the Bolton corridor. Work on this action plan has been under way for some time. They have also published temporary timetables that will be more deliverable and will give passengers much more confidence in the reliability of their service. This will mean removing certain services from the new expanded timetable while still ensuring an improvement in the total number of services run by Northern compared with before the timetable change. Alternative arrangements will be made for passengers negatively impacted by the changes. I believe that this temporary measure is necessary to stabilise the service and enable improvements to be introduced gradually.

On GTR, there are more services running on a day-to-day basis today than before the timetable change, while Southern and Gatwick Express services are performing well on some routes but not all. GTR is not currently able, however, to deliver all planned services on Thameslink and Great Northern routes. In order to give passengers more confidence, it is removing services in advance from its timetable rather than on the day and reducing weekend services to pre-May levels. These measures will be in place until a full re-planning of driver resourcing has been completed.

I would like to make it clear that, while I expect to see stable timetables restored on both networks in the coming days, I expect the full May timetable and all the extra trains to be introduced in stages over the coming months to ensure it can be delivered properly this time. Once the full service is operating on GTR, 24 Thameslink trains will run through central London every hour, and by next year, 80 more stations will have direct services to central London stations such as Farringdon, City Thameslink and Blackfriars. There will also be 115 new trains and more than 1,000 new carriages providing faster, more frequent and more reliable journeys for passengers.

On Northern, the great north rail project, an investment of well over £1 billion in the region’s rail network, will enable by 2020 faster and more comfortable journeys as well as new direct services across the north and beyond. By 2020, the train operators, Northern and TransPennine Express, will deliver room for 40,000 extra passengers, and more than 2,000 extra services a week.

That, however, is the future. What matters now is restoring a stable service for passengers today. I completely understand their anger about the level of disruption that the timetable change has caused in recent weeks. There must, of course, be a special compensation scheme for passengers on affected routes on both GTR and Northern. In the case of Northern, the scheme will be subject to agreement with the board of Transport for the North, although I doubt that the board will have a problem with it. The purpose of the scheme, which will be introduced and funded by the industry, will be to ensure that regular rail customers receive appropriate redress for the disruption that they have experienced. The industry will set out more details of the eligibility requirements, and of how season ticket holders can claim, but I think it is very important for passengers—particularly in the north, where disruption has been protracted—to be given entitlements similar to those conferred by last year’s Southern passenger compensation scheme. Commuters in the north are as important as commuters in the south, and they should receive comparable support.

It is clear to me that, aside from Network Rail’s late finalisation of the timetable, GTR and Northern were not sufficiently prepared to manage a timetable change of this scale, so today I am also announcing that work has begun to set up an inquiry into the May timetable implementation. It will be carried out by the independent Office of Rail and Road, and chaired by Professor Stephen Glaister. It is necessary to have a full inquiry, and Professor Glaister will lead one. The inquiry will consider why the system as a whole failed to produce and implement an effective timetable. Its findings will be shared as early as possible with me and with the rail industry, so that lessons can be learnt in advance of future major timetable changes. The final report will be published by the Office of Rail Regulation by the end of the year, but I want to see initial responses much sooner than that.

In parallel with the inquiry, my Department will assess whether GTR and Northern met their contractual obligations in the planning and delivery of the timetable change. It will consider whether the issues could have been reasonably foreseen and different action taken to prevent the high levels of disruption that passengers are experiencing.

In GTR’s case, the assessment will cover whether the operator had sufficient resources and skills to deliver the new timetable and whether drivers could have been trained in a faster and more effective way, and will examine the contingency and risk management arrangements currently in place. If it is found that GTR is materially in breach of its contractual obligations, I will take appropriate enforcement action against it. That will include using the full force of the franchise agreement and my powers under the Railways Act 2005, and consideration of how such a failure affects GTR’s eligibility to hold a franchise bidding passport. In the case of Northern, my Department will assess the operator’s planning, risk assessment and resilience in preparing for the May timetable change. Bearing in mind Network Rail’s failure to deliver infrastructure on time, we will hold the operator to the terms of its contractual obligations.

I will not be afraid to take enforcement action when it is necessary, but it is right to go through the process of the inquiry and to understand where fault truly lies. I will not hold back from taking appropriate action if the review finds that there has been negligent behaviour.

Given the importance that Members throughout the House ascribe to these issues, I have arranged for both Northern and GTR to come to the House this week to discuss with colleagues any specific issues that they wish to raise with the operators. I am also meeting Members on both sides of the House today to discuss the issues with them. I am incredibly frustrated that what should have been an improvement in services for passengers has turned into significant disruption, and I am sorry about the levels of disruption that passengers are experiencing. I am also sorry for the staff members who have been caught at the sharp end of these changes.

There clearly have been major failures that have led to the situation that we are in today. I am clear about the fact that the industry must and will be held to account for this, but my immediate priority is to ensure that we improve train services to an acceptable level as quickly as possible, and that will remain my priority.

Andy McDonald Portrait Andy McDonald (Middlesbrough) (Lab)
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I am grateful for advance sight of the Secretary of State’s statement—for once. Here we go again, with yet another chapter in the never-ending story of our troubled railways. Not only have train timetables been turned upside down, but the Transport Secretary seems to have run into his own timetabling problems in meetings with Members today.

It is said that Henry Kissinger once asked who he should call if he wanted to speak to Europe. The answer was not clear. Similarly, I would ask who I should call if I want to speak to the UK rail industry. Therein lies the heart of today’s problem and the whole rail debate more generally: no one will take responsibility for Great Britain’s rail industry. But, amid all the clamour, recriminations and buck-passing that characterise discussions about rail there is one person who is ultimately responsible: the Secretary of State for Transport, the right hon. Member for Epsom and Ewell (Chris Grayling). But he blames Network Rail for the timetabling failures. Yes, Network Rail has not delivered, but he seems to forget that, as a company limited by guarantee, Network Rail has one member: the Secretary of State for Transport—him. He is the man in charge—allegedly. The right hon. Gentleman might want to blame Network Rail, but it is he who has failed in his responsibility to oversee it; the buck stops with him. What is more, the right hon. Gentleman has burnt his bridges with the leadership of Network Rail, which can only have damaged his oversight of this process. Is not this a terrible failure of him and his role atop the system?

The Northern Rail and Thameslink contracts were awarded by the right hon. Gentleman’s Department to private operators. It is the job of his Department to ensure that the companies fulfil their contracts. Arriva and GTR have had years to prepare for these timetable changes; neither have trained enough drivers to deliver the timetable changes, yet the Department has failed to hold the companies to account. Can the right hon. Gentleman confirm that it is within the franchise agreement for Arriva to report directly to him on progress in recruiting and training drivers? Does not the buck, once again, stop with him?

GTR even had its own readiness board to implement the timetable changes, except that it was not ready; we could not make this up. Chris Gibb’s report on Southern exactly a year ago highlighted the issue of driver numbers as a major operational issue within rail. Why did the Secretary of State not take the report as an alert to review the availability of the train drivers who were needed across the country and do something about it? He says the Office of Rail Regulation will report on the failings by the end of the year, but, with the new timetable due in December, this will be too late. What confidence can we have that it will not be another shambles? Is not the reality that this Secretary of State has been asleep at the wheel and this is just the latest episode in a series of rail management failures on his watch?

The right hon. Gentleman is determined to cling on to the micromanagement of the railway when it suits him, but he will quickly point the finger of blame when things go wrong. He cannot have it both ways. The Secretary of State says he is sorry for the disruption passengers are facing. That is not good enough; he should apologise to passengers for his failures that have put their jobs at risks and played havoc with their family life.

The travelling public and the rail industry have no faith in this Transport Secretary to fix this situation. Were the Prime Minister not so enfeebled, she would sack him. If he had any concept of responsibility, he would resign. The Transport Secretary should do the right thing and step aside.

Lord Grayling Portrait Chris Grayling
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I was rather expecting the hon. Gentleman to say that, and I respond simply by saying that it is my job to make sure that the problem is fixed, and that is what I intend to do. But the Opposition cannot have it both ways: half the time the hon. Gentleman is saying to me that the Government should run the railways, but when something goes wrong he says that it is the Government’s fault that we are not running the railways properly. They cannot have it both ways.

There are two specific points. On what we are going to do about the timetable in December, I have been very clear in the letter I sent to all colleagues last week that we are not going to do a major change of this kind again in the way that has happened in the last couple of months; it must be done in a more measured and careful way. We are already doing work now on how that timetable change should happen—how it should be modified—and the incoming chief executive of Network Rail, Andrew Haines, who I think will bring enormous experience to this, is the person who was responsible 10 years ago for the very successful timetable change on South Western. I have great confidence that as he comes into the organisation in the coming months, he will be able to put in place a plan for timetable change both at the end of this year and in the future that works better for passengers, who are the most important people in all of this.

The hon. Gentleman also asked me why we did not pay more attention to Chris Gibb’s report last year. Actually, we did. We appointed Chris Gibb chairman of the industry readiness board. Chris is one of the most experienced and respected figures in the rail industry, but that board still did not gather the scale of the problem that lay ahead when it last reported to me in May. Lessons have to be learned by the people on that board. We have to make sure that this cannot happen again, and everyone in the rail industry—and everyone in my Department, including me—is working to ensure that that happens.

Peter Bottomley Portrait Sir Peter Bottomley (Worthing West) (Con)
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Our constituents who are passengers, and our constituents who work on the railways, want to get this solved, and the best thing to do is to give backing to those in the industry and to the Secretary of State to ensure that that happens.

Anticipating an article by Nigel Harris in Rail magazine, I would suggest that those who have power need to be accountable and those who are accountable need to have power.

Anyone who has no expertise should take advice from those who can make things better. That requires getting everyone—unions, managers and knowledgeable passengers —together to see how best we can get out of the hole we are in at the moment.

It is too bad, and it has been too bad for too long.

Lord Grayling Portrait Chris Grayling
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I completely agree with my hon. Friend; I think that the railways are going to have to change significantly as a result of what has happened. However, I say to those who are saying that we should sack the franchisees that simply sacking the people who are working today will not solve the problem, because I do not have some other group of people down the corridor who are able to take over. We have to make sure that everyone has all the necessary support from across the industry to deliver solutions for passengers and get back to stability as quickly as possible. I absolutely accept what my hon. Friend says.

Alan Brown Portrait Alan Brown (Kilmarnock and Loudoun) (SNP)
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Another week, another rail shambles. When will the Secretary of State admit that the rail franchise system is broken and do something to fix it properly? It was really disappointing to hear that travellers who were forced to get rail replacement buses at short notice were sometimes turned away because the buses were full or simply did not turn up. That is even more ironic considering that Arriva also operates overlapping bus groups. That just highlights the farce that is going on at the moment.

We know that late-running Network Rail projects reduced the time available for train operators to plan the new schedules, but what assessment has the Secretary of State made of his Department’s culpability in this, with regard to Network Rail? Despite assurances that all was well, it is now clear that there was no possibility of the timetables being capable of being operated in full from day one. Why did no one in the train operating companies, Network Rail or the Department for Transport ask for a postponement of the new timetable roll-out?

The Secretary of State has said that he will take the strongest enforcement action against GTR if it has broken its franchise agreement. Will that action be stronger than that taken against Virgin Trains East Coast, which has been allowed to walk away owing the Department for Transport billions of pounds?

What is the Secretary of State’s exact timeframe for resolving these timetable issues? He has mentioned putting in additional resources. What additional resources will be put in from his Department? What is he doing to ensure that the driver shortage is not met by poaching drivers from other franchises, which could have an impact on services elsewhere? On the question of compensation, what will he do to ensure that the rail industry does not recover the costs of compensation from other fare-paying passengers?

The Secretary of State continually highlights Network Rail failings, but when will he accept that he has responsibility and culpability for Network Rail and fall on his own sword? An apology is not good enough.

Lord Grayling Portrait Chris Grayling
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As I have said, the key issue now is to sort out the problems. The hon. Gentleman asked about failings in my Department and elsewhere. I have asked Stephen Glaister to look at everything that has happened and to report back publicly so that we can know exactly what has gone wrong and particularly so that we can ensure that it cannot happen again. The hon. Gentleman asked about resources. My Department is deploying extra people on this, as is the industry. For example, GTR has borrowed drivers from freight operators to try to deal with some of the shortages on its rosters. On the question of compensation costs, my view is that they should be paid by the people who are responsible.

Theresa Villiers Portrait Theresa Villiers (Chipping Barnet) (Con)
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GTR has told me that these delays are going to carry on until mid-July. Does the Secretary of State agree that that is utterly unacceptable? Will he ensure that Network Rail and GTR fix these problems in a matter of days, not weeks?

Lord Grayling Portrait Chris Grayling
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I share my right hon. Friend’s frustration. The most important thing is to end the situation in which we have mass cancellations and people cannot plan their journeys. The important thing now is to reintroduce the services that were supposed to be part of the May timetable step by step, so that we do not end up having the same problem all over again. First, we have to ensure that we have a dependable service that people know will be there when they turn up. Secondly, we need to move back, in a responsible, phased way, to the expanded timetable with the thousands of new trains that should have been there on 20 May.

Lilian Greenwood Portrait Lilian Greenwood (Nottingham South) (Lab)
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Train operators and Network Rail have undoubtedly failed dismally, but the Department for Transport signed off GTR’s unworkable timetable proposals in the face of Network Rail opposition, delayed the decision to agree a phased introduction of the new Thameslink timetable, rejected Chris Gibb’s recommendation of a longer eight-phase implementation, required a reduction in spending on train planning by 2019 despite the biggest timetable change in more than a decade, and failed to spot that driver shortages and training needs would undermine the main timetable. Why has the Secretary of State, both in his letter to MPs and again today, failed to take any responsibility for his Department’s role in the shambles endured by passengers up and down the country?

Lord Grayling Portrait Chris Grayling
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I fully expect Stephen Glaister’s review to look at all the players in this, including my Department. The industry readiness board set up by my Department to assess the process of introducing the new Thameslink timetable recommended in May that the timetable could go ahead. When experts are called in for advice and they advise us to do something it is generally a good idea to listen to them.

Oliver Heald Portrait Sir Oliver Heald (North East Hertfordshire) (Con)
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At Letchworth station this morning, I spoke to passengers who have suffered great delays and many cancellations, children going to school whose train had been cancelled—one of them in tears—and workers who have been told, “You can’t keep on being late like this.” Is it not time that Govia Thameslink Railway actually produced the timetable, the service and the reliability of information that those people—my constituents—deserve? What is going to be done to encourage it to get on with this and provide that service quickly?

Lord Grayling Portrait Chris Grayling
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The No. 1 priority is to restore a reliable timetable, and I have been clear that GTR has an urgent duty to do so. There is unquestionably a large question mark over its future, but it needs to sort the problem out as quickly as possible to have any chance of surviving in the rail industry.

Gavin Shuker Portrait Mr Gavin Shuker (Luton South) (Lab/Co-op)
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I have been in this House for the best part of a decade and I have never seen such a complacent performance from a Secretary of State at the Dispatch Box. He needs to understand that he is in deep trouble over this. The situation will go on for months and months, and the underlying issues behind the timetable changes and why they have gone wrong land squarely with his Department. Does he agree that his unwillingness to accept any responsibility undermines his efforts to put things right?

Lord Grayling Portrait Chris Grayling
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This is simply about everyone in the industry and my Department working to ensure that we have a stable timetable for passengers. That is the most important priority right now.

Michael Fallon Portrait Sir Michael Fallon (Sevenoaks) (Con)
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Is my right hon. Friend aware that two villages in my constituency, Eynsford and Shoreham, are now virtually cut off? Commuters cannot get up to London, and their children cannot get down to school in Sevenoaks. Will he use the authority of his office to persuade Southeastern to stop at least one or two of its peak-hour fast services during the current disruption to give those two villages a chance of normal life?

Lord Grayling Portrait Chris Grayling
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Absolutely. I have already asked my office to action work to try to find a rapid solution to the problems at those two stations.

Tim Farron Portrait Tim Farron (Westmorland and Lonsdale) (LD)
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The Secretary of State knows that every single train on the Lakes line is to be cancelled over the next two weeks, and at least 11 trains have been cancelled on the Furness line so far today. He is clearly not immediately planning to remove the franchise from either line, as he should, and he mentioned neither in his statement. Will he clarify now that, if Arriva Northern asks for an extension to this outrageous two-week suspension, he will refuse such a request? Will he also commit to funding an ambitious marketing campaign to relaunch the lines and boost our local economy in the light of the colossal reputational damage that they are now suffering?

Lord Grayling Portrait Chris Grayling
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I discussed that very issue with members of Rail North’s board last week. I am profoundly unhappy about this. I have indicated to Arriva that I am not prepared to accept more than the current two weeks and that it should use that two-week period to do engineering work, which will be necessary over the coming months, so that we are not wasting time when a bus service is in place. I have been clear to Arriva that doing this over the long term is simply unacceptable and that it has to get the trains back very quickly.

Lord Soames of Fletching Portrait Sir Nicholas Soames (Mid Sussex) (Con)
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I make a respectful suggestion to my right hon. Friend, which is that the rail industry readiness board should be taken quietly outside and disposed of. Is he aware that the rail service to East Grinstead, in which he has always taken an interest, has finally fallen over completely, that trains from Haywards Heath, Wivelsfield and Burgess Hill are shorter and more overcrowded, that people’s private lives are being destroyed and that this whole thing is an absolute disaster that must be put right?

Lord Grayling Portrait Chris Grayling
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I completely agree with my right hon. Friend, and I have communicated that to the company concerned.

Rachel Reeves Portrait Rachel Reeves (Leeds West) (Lab)
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Last week 49 trains were cancelled in my constituency, particularly at Bramley train station, meaning that passengers were late for work, for college and for other appointments. Frankly, passengers have lost faith in the Secretary of State. Is it not about time he stepped aside and allowed someone who can fix this problem to do the job?

Lord Grayling Portrait Chris Grayling
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This problem needs to be fixed as quickly as possible. I respectfully remind the Opposition that a private rail company is involved. Opposition Members keep telling me that we should nationalise it and have the Government running the trains, so they cannot have it both ways.

Iain Stewart Portrait Iain Stewart (Milton Keynes South) (Con)
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Enormous investment has gone into the Thameslink programme, with a new fleet of rolling stock and a state-of-the-art digital signalling system. Can the Secretary of State assure me that these new systems are working as planned and that the cause of the problem is not a technical failing?

Lord Grayling Portrait Chris Grayling
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My hon. Friend is absolutely right. The real frustration is that this is a consequence of major investment programmes and the delivery at the end of those programmes has gone wrong. The thing I find most frustrating about all this, and I absolutely feel for every single passenger who has waited for a cancelled train in the past week—I get the train every day, and I am as fed up with this as everyone else—is that this is the consequence of a change that resulted from a massive investment programme in the railways. We should now be seeing the fruit of that investment programme. We are not yet seeing it, and we have to make sure that we see it pretty quickly.

Kelvin Hopkins Portrait Kelvin Hopkins (Luton North) (Ind)
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I have thousands of constituents who commute daily from Leagrave and Luton stations and who are suffering from recent service failures—I have a sheaf of their complaints in my hand. Is it not the reality that GTR has consistently sought to squeeze more passengers on to too few trains and has employed insufficient drivers in the interest of profits, at the expense of passengers? When are the Government going to accept the grotesque failure of private franchising?

Lord Grayling Portrait Chris Grayling
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I absolutely understand the pressures on the hon. Gentleman’s line. Part of the objective of this upgrade is to deliver longer trains and more trains, and it is a huge frustration to me that that has not happened. We have to make sure it happens as quickly as possible.

Martin Vickers Portrait Martin Vickers (Cleethorpes) (Con)
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What estimate has been made of the cost to the industry and of the potential impact on the various companies involved?

Lord Grayling Portrait Chris Grayling
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It is too early to work through that. I am more focused at the moment on getting services back to normal. The companies will undoubtedly bear a cost from this but, as far as I am concerned, the most important thing is making sure that services are back to normal and that passengers are compensated, and the companies will have to meet the cost of that.

Chuka Umunna Portrait Chuka Umunna (Streatham) (Lab)
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The Thameslink service in my constituency from Streatham to London Blackfriars had 37 trains cancelled last Friday, and over 160 trains were cancelled over the course of last week. Every time the Secretary of State comes to the Dispatch Box—like the GTR managers—he blames everyone but himself. He has been in situ for two years. Are not my constituents entitled to think that this is just an utterly pointless Transport Secretary, because nothing ever changes under his watch?

Lord Grayling Portrait Chris Grayling
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I seem to remember that when I took over there were real problems with Southern metro services at other stations in the hon. Gentleman’s constituency. Those problems have now been improved and sorted, and those services are running very well—not across the whole Southern network, but across the Southern metro network. We now need to sort this problem out.

Bim Afolami Portrait Bim Afolami (Hitchin and Harpenden) (Con)
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I have spoken to the Secretary of State over many weeks and months about the train issues in my constituency of Hitchin and Harpenden. I know the inquiry he has announced will look into culpability on this matter, but how much more evidence do we need that the senior management of Network Rail and GTR are incompetent, incapable and inept? How long can they go on?

Lord Grayling Portrait Chris Grayling
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We need to establish who is directly responsible for the decision making that has been got wrong here, establish the truth through the Glaister review and then take appropriate action—and we will.

Barry Sheerman Portrait Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
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My constituents, and the people in Yorkshire and the north, love their railway system, but they want it to be a good system that is safe and secure and that runs on time, to get them to work and to see their family. Does the Secretary of State realise just how much misery has been caused to so many families over these past weeks? I am not the most radical or left-wing member of my party, but even I believe that the system of privatisation has not worked and will never work, and that it is time we had a public service railway system in our country.

Lord Grayling Portrait Chris Grayling
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Of course I understand the frustration that the hon. Gentleman experiences. The irony is that these timetable problems have resulted from a planned expansion in services for his constituents and others across the north. It was designed to deliver thousands of extra train services for people across the north of England. It has not worked today and it must work soon.

Alec Shelbrooke Portrait Alec Shelbrooke (Elmet and Rothwell) (Con)
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My constituents at Garforth, Micklefield and Woodlesford stations are agog at how bad the trains have got, and I lay the blame for a lot of this at the door of Network Rail, not the Secretary of State. There have been plenty of opportunities and plenty of promises made over decades; I was using this train line 20 years ago, and it was rubbish then and it is rubbish now. What can he do to ensure that Network Rail gets a grip of the situation and delivers on the promises it makes?

Lord Grayling Portrait Chris Grayling
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What we have to see is the completion of the investment programme, the delivery of the new trains and, above all, the sorting out of the timetable. Every train in the north of England is being replaced with either a brand new train or a completely refurbished one. The new trains are due to start arriving later this year. We have big investments taking place. The transpennine rail upgrade, at £3 billion, is the largest investment; it is part of the next rail infrastructure investment programme. It is just hugely frustrating that what has been done so far has yet to deliver the improvements it should to passengers and has actually made things worse. That must stop, and stop quickly.

Helen Hayes Portrait Helen Hayes (Dulwich and West Norwood) (Lab)
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My constituents have already faced three years of disruption and continual delays at the hands of GTR, Southern and Southeastern, and the chaos from the new timetable is making things worse. The impact of that chaos is more than simply inconvenience; it is taking its toll on relationships, family life and employment, and we have the heart-rending sight of students unable to get to important exams on time. The Secretary of State previously refused, for entirely political reasons, to pass control of suburban rail services in south London to Transport for London. Will he now accept that my constituents deserve their rail services to be run by an organisation that will put passengers ahead of profit, and hand them to TfL to run?

Lord Grayling Portrait Chris Grayling
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The only thing I would point out, respectfully, to the hon. Lady is that she has just called for the transfer of rail services from Southeastern to Arriva, which runs Northern, while other people are telling me that Arriva is not capable of running Northern. That is the reality of what she is arguing for.

Crispin Blunt Portrait Crispin Blunt (Reigate) (Con)
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I do not envy my right hon. Friend and neighbour in making this statement today, but I know that he understands the position of Redhill and Epsom only too well, because he has been to visit Redhill station and see the infrastructure improvements that he is putting in place. However, my constituents were promised an improved service in 2014, after the London Bridge investment and for the new timetable in 2018, but even if the timetable was working properly they would have a worse service than they were promised four years ago. They have the privilege of paying the “Redhill hump” for being just outside the London zoning. My right hon. Friend and his Department are part of the industry, because they get the fare income generated under the GTR franchise, so will he please look at being part of the industry and not just dumping the issue of compensation entirely? Will he rapidly ask the rail Minister to bring forward plans to deal with the Redhill hump? Redhill services have had more cancellations than those anywhere else.

Lord Grayling Portrait Chris Grayling
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I say to Members on both sides of the Chamber that some places have undoubtedly been inappropriately disadvantaged by the timetable change. The rail Minister and I are happy to sit down in person with colleagues who represent those places to talk through how we can address those issues in future timetable changes. That offer is open to Members from all parties. We have seen a large number of colleagues today to talk about more short-term issues, and we are happy to have similar conversations as we plan for further timetable changes.

Kate Hollern Portrait Kate Hollern (Blackburn) (Lab)
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When the Northern franchise was awarded to Arriva, the previous Secretary of State for Transport, the right hon. Member for Derbyshire Dales (Sir Patrick McLoughlin), said:

“We promised passengers a world class rail service that would make the Northern Powerhouse a reality—and I’m delighted”.

He also said that the new operator would

“bring the Northern Powerhouse to life.”

Such promises would be laughable, except that they are tragic, because my constituents cannot get into Manchester for their jobs, cannot get to hospital appointments and cannot return home to pick up their children from childcare places. Why will the Minister not take responsibility, stop passing the buck and fix this now?

Lord Grayling Portrait Chris Grayling
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I would be delighted to fix it now. It is worth reminding the House that the Northern franchise is a partnership between my Department, Transport for the North and the Northern leaders. It was designed by all of us to deliver precisely the improvements that the hon. Lady describes. It is a huge frustration to me, and I suspect to everyone in the north, that that has not happened, and I assure her that I will do everything that I can. I trust that through the Rail North partnership we will deliver the improvements that have been promised and that her constituents deserve.

Nadine Dorries Portrait Ms Nadine Dorries (Mid Bedfordshire) (Con)
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My constituents pay one of the highest prices for season tickets, out of taxed income. For more than 13 years, I have been complaining on their behalf as they have encountered one crisis after another, including under the previous Government for the first five of those 13 years. This is another crisis with which my constituents have had to deal. Will the Secretary of State please use his good offices to tell Thameslink to stop cancelling, with little or no notice, stops at Flitwick and Harlington and continuing the service on to Bedford, where people are stranded and find it very difficult to get home? Will he also insist that once trains are running normally, the compensation scheme is not inadequate and does not mean one month’s free rail use, but is more like six months’ free rail use on people’s season tickets? I welcome the Secretary of State’s statement that 24 trains an hour will be running soon, but when? We need them as soon as possible.

Lord Grayling Portrait Chris Grayling
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I completely agree with my hon. Friend, and I will make sure that an appropriate compensation package is in place. First and foremost, we have to make sure that there is a service on which people can rely. The thing that I think is currently most frustrating people is not being sure whether the train is going to turn up when they go to the station to catch it. The most important thing right now is for both Northern and GTR to deliver a service on which passengers can depend, so that they know that when a train is due it is actually going to turn up.

Caroline Flint Portrait Caroline Flint (Don Valley) (Lab)
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The Secretary of State has said that he and his Department were asking questions of the industry readiness board, the operators and Network Rail, and that they did not provide him with information that there was going to be such a disaster. In the interests of transparency, would he be prepared to publish any recorded letters, memos or emails that show that his Department was asking the right questions at the right time, so that we can see what answers he and his Department were given?

Lord Grayling Portrait Chris Grayling
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I am prepared to be completely transparent over this. I have instructed Stephen Glaister to go through everything, including the conversations with my Department, and that it should be made public. I have no doubt that the Transport Committee will do the same. I am aware of nothing that I would want to be kept hidden. I want everybody to understand what has gone wrong and I want lessons to be learned. The most important thing is that we make sure that this can never happen again. That is my No. 1 priority.

Robert Neill Portrait Robert Neill (Bromley and Chislehurst) (Con)
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My constituents have suffered in exactly the same way as those of many Members. Frankly, they were misled when they were told that there would be an improved service after London Bridge was sorted, because there has not been and will not be, even when the timetable works as it should. More to the point, my right hon. Friend says that these are consequences of change, and I understand that, but is not the whole point of competent management that people are supposed to anticipate and deal with consequences? When Network Rail puts out a statement saying that

“we are looking at understanding the root cause”,

it sounds as if it is running a seminar rather than a railway. Will my right hon. Friend get rid of these incompetents, now?

Lord Grayling Portrait Chris Grayling
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I assure my hon. Friend that I am sufficiently angry at what has happened that anyone who has found to be negligent in this matter should not carry on in the job they are doing now. It is simply not acceptable to have a situation in which people are in operational control of something and completely fail to deliver. The whole point of setting up an independent review is to understand exactly what has gone wrong so that lessons can be learned.

Luciana Berger Portrait Luciana Berger (Liverpool, Wavertree) (Lab/Co-op)
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Two months before the changes, back in March, I asked the Secretary of State in a written question what steps he and his Department had taken to ensure that there was both adequate track capacity and adequate train numbers to support the proposed rail timetable change in the north-west, because my constituents knew then that there would be a problem. A junior Minister told me in a reply that it was the responsibility of the train operating company to support the proposed timetable changes—nothing to do with his Department. I have constituents who are standing in sweltering heat for five hours, some of whom are fasting for Ramadan—and that is if they can get a train at all. It is an absolute disgrace. What will the Secretary of State do to make it right today?

Lord Grayling Portrait Chris Grayling
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The answer to the hon. Lady’s question is that a temporary timetable is being put in place on Northern that should stabilise the timetable this week, and then, step by step, it will start to put back in place the extra services that were promised post May.

Chris Philp Portrait Chris Philp (Croydon South) (Con)
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For at least three years now, my constituents have on occasion been unable to get to work, unable to reach hospital appointments and unable to get home in the evening to see loved ones. GTR has presided over an incompetent railway network for far too long. Can the Secretary of State confirm that if the Glaister report finds that GTR has been negligent in the handling of this timetable introduction, which has certainly been a fiasco, and that if GTR fails urgently to take the steps required to fix it, the measures he is contemplating will include removing its franchise?

Lord Grayling Portrait Chris Grayling
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I have been absolutely clear that, if GTR is found to be negligent, I will use the powers that I have under the Railways Act 1993 and under the contractual arrangements to deal with this.

Stephen Doughty Portrait Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)
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There could not be a greater contrast between the millions of pounds of new investment in our railways being introduced by the Welsh Labour Government and the shambles over which the Secretary of State presides. Can he explain what on earth is going on at Great Western Railway? There have been repeated cancellations, delays, trains that are understaffed with no catering services, and trains breaking down. I have spoken to Great Western Railway, to Network Rail and to Hitachi. Hitachi tells me that the Department for Transport did not give a long enough period for testing the trains, and Great Western tells me that it sold off a load of its own trains to Scotland before the new ones were ready. Will he get a grip on that situation?

Lord Grayling Portrait Chris Grayling
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The Great Western modernisation is delivering new trains and a faster service, and by the end of this year it will deliver an improved timetable. There have been teething problems with the introduction of the new trains, but anyone who has travelled on the new trains in which this Government are investing on the Great Western route will say that they are a step in the right direction.

Matthew Offord Portrait Dr Matthew Offord (Hendon) (Con)
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This really is an appalling situation that we should have seen coming down the line given the history of the train operating companies. I have emails from my constituents that complain about a lack of communication from Govia Thameslink. They say that the refund procedures are lengthy and difficult to navigate and that the timetable implementation has simply not worked. Will the Secretary of State give serious consideration to introducing a short deadline to ensure that GTR in particular brings the service up to an acceptable standard, or finding another train provider that will do so?

Lord Grayling Portrait Chris Grayling
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I am very clear that I expect GTR to deliver an improvement to the current situation as a matter of real urgency. If it does not do so, it will lack the credibility to continue as operator.

Paula Sherriff Portrait Paula Sherriff (Dewsbury) (Lab)
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What a mess! How would the Secretary of State respond to my constituent who contacted my office this morning to say that he has already had to use a significant portion of his annual leave allocation because he has arrived at work hours late every single day over the past couple of weeks? Given the debacle that we have seen on the trains recently, with not just this situation but the delayed electrification and the problems on the east coast main line, does the Secretary of State believe that he has the competence to sort this out?

Lord Grayling Portrait Chris Grayling
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What I would say to the hon. Lady’s constituent is that I am very, very sorry and that we will have a compensation scheme. Somebody has to sort this out, and that is what I am going to do.

Tim Loughton Portrait Tim Loughton (East Worthing and Shoreham) (Con)
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I am sure that I speak on behalf of thousands of commuters in Sussex when I say that this must be the end of the line for the GTR franchise. We were constantly assured that the driver shortage had been addressed, but now we are told that the problem is the wrong type of drivers on the line. Will the Secretary of State assure me that the compensation scheme will be a realistic one, that it will be paid for not by his Department this time but by the train operators, and that, within six months maximum of the Glaister review reporting, he will be in a position to take back that franchise?

Lord Grayling Portrait Chris Grayling
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The people responsible for this have to pay the cost. In terms of the report, I will be absolutely clear that if I need to take action, I will be ready to take action.

Bill Esterson Portrait Bill Esterson (Sefton Central) (Lab)
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Before the timetable changed, Members across the House warned about the problem. On a number of occasions, I have warned about the problems for people travelling from Southport to Manchester. It seems that anyone who knew anything about railways—especially the travelling public—warned Ministers about the shortage of drivers, the delays and the engineering works. Given all the warnings, why did the Secretary of State not delay the implementation of the new timetable? Frankly, given the chaos, why is he still in his job?

Lord Grayling Portrait Chris Grayling
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One of the things I want the Glaister report to do is identify why the train companies did not tell us that there was a sufficient problem to delay or halt the introduction of the timetable.

Henry Smith Portrait Henry Smith (Crawley) (Con)
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What my constituent commuters and, indeed, I—as a passenger—want to know is, why does Govia Thameslink have such a lack of planning and future foresight? There are to be major engineering works on the London to Brighton main line in October this year and February next year. What assurances can I have for my constituents travelling from Three Bridges, Crawley, Ifield and Gatwick Airport stations that proper planning will be in place to ensure that those engineering works, which are welcome, do not cause undue disruption?

Lord Grayling Portrait Chris Grayling
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I will ensure that the rail Minister sits down with my hon. Friend and has a conversation with all those involved to make sure that those works are not an issue. As he knows, there has been necessary investment to sort out problems on the Brighton main line, but we cannot have the works causing inappropriate levels of disruption. There will inevitably be some disruption, because engineering works cannot be done without it, but we have to ensure that they are done in the right way.

Rosie Cooper Portrait Rosie Cooper (West Lancashire) (Lab)
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To describe my constituents as incandescent would be an absolute understatement. Colleagues across the House have described the impact this fiasco has had on families and individuals. I have listened carefully to the Secretary of State and he seems to have been reassured by the information he has received, but he does not seem to have tested that information to assure himself and his Department that the information was correct. If that is so, how can we be sure that he has tested and is assured of his potential solutions?

--- Later in debate ---
Lord Grayling Portrait Chris Grayling
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I simply say that we have teams of people whose job it is to assure this. They did not see this situation coming; nor did the train operators. The Glaister review is necessary because this should not have been able to happen.

Heidi Allen Portrait Heidi Allen (South Cambridgeshire) (Con)
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If GTR is telling the Secretary of State that things are getting better in my constituency of South Cambridgeshire, it is not being truthful to him. The experience of my constituents—and, indeed, my experience of travelling in today—is that things are getting worse. Network Rail may hold the lion’s share of the responsibility, but the operators have a role to play too. Why on earth did they not flag at minus three weeks that that period of time was not going to be long enough? The operators clearly told the Secretary of State that everything was fine, but last week they told me that it was not and that three weeks would never have been long enough, so which one of us are they lying to?

I ask the Secretary of State for two actions. First, he says that the emergency timetable that has been implemented today would take us back to pre-May levels. It is not doing so at all; it is actually worse. By the end of this week, can we please aim to have the pre-May timetable back in place? Secondly, we have heard about compensation for Northern passengers being akin to that of Southern last year. I have to tell the Secretary of State that the GTR performance up and down the line in my constituency is as bad, and we should be considered for the same levels of compensation.

Lord Grayling Portrait Chris Grayling
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I will certainly take on board my hon. Friend’s points. I hope and expect, and am insisting, that we see stabilisation during the course of this week. What matters is that people know which trains are going to run, and that they know a train will be there when they turn up. That is the most important priority, certainly on her line.

Louise Ellman Portrait Mrs Louise Ellman (Liverpool, Riverside) (Lab/Co-op)
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Many of my constituents are furious that they cannot get to work owing to driver shortages and mass cancellations in the timetable in what is supposed to be a situation of planned improvements. How much worse does it have to get before the Secretary of State will consider removing the franchise?

Lord Grayling Portrait Chris Grayling
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Of course the future of both franchises is a genuine issue, but I honestly think that the most important thing right now is to solve the problem. Sacking the people who are working to solve the problem would probably not get us anywhere. As to what will happen a few months’ time, when we have seen the Glaister report—that is a very different question.

Fiona Bruce Portrait Fiona Bruce (Congleton) (Con)
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Northern Rail has changed or reduced the already limited rush hour services between Congleton and Manchester to such an extent that my constituents say that they are having to face the pressured M6 and M56 commute by car, and that this timetabling change may even breach Northern’s service level agreement. Will the Secretary of State take up with Northern Rail this wholly inadequate rail service for a growing town, and will he require improvement?

Lord Grayling Portrait Chris Grayling
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As I said a moment ago, the rail Minister and I are happy to talk to individual colleagues on both sides of the House to look at places where there are issues of this kind. There are rolling timetable changes each year. If we can look at cases where a town has genuinely been disadvantaged, we can see what we can do to sort that out.

Mohammad Yasin Portrait Mohammad Yasin (Bedford) (Lab)
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Bedford rail users who lost their peak time East Midlands Trains service are still facing the misery of cancellations and delays. Trains are leaving St Pancras half full and are whizzing past Bedford, while my constituents have been forced on to dangerously overcrowded Thameslink trains. This is absolutely ridiculous. Will the Secretary of State stop making excuses and reinstate the Bedford EMT service today?

Lord Grayling Portrait Chris Grayling
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I have already asked the industry to look at whether it can restore some of the East Midlands Trains services to ease the pressure on Bedford in the interim period, while this disruption is happening. It seems a logical thing to do, given that the train paths are not being occupied by Thameslink at the moment.

Paul Scully Portrait Paul Scully (Sutton and Cheam) (Con)
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This was supposed to be the light at the end of the tunnel, but that is actually a train coming fast the other way. Commuters do not want to play the blame game. They just want their trains to work now. The short-term view of sacking a franchisee overnight would really just mean the same people running the same lines with differently spray-painted trains. I want us to look back and find out how nobody, but nobody, thought to postpone the process, but we should also look to the future: will the Secretary of State tell us how many lifelines GTR needs before we realise that it should have no place on the UK’s rail network?

Lord Grayling Portrait Chris Grayling
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I am very clear that once we know the full culpability for this situation, the appropriate action will be taken if it needs to be taken.

Hilary Benn Portrait Hilary Benn (Leeds Central) (Lab)
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The more the Secretary of State has described this afternoon some of the reasons why this disaster occurred—lack of preparation and lack of time—the more commuters and others on Northern and TransPennine, who have suffered so much misery, will wonder why the introduction of the new timetable was not cancelled, rather than their trains. It is quite clear that the Secretary of State had no idea what was going on. The question that he has not answered today is, why?

Lord Grayling Portrait Chris Grayling
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As I said, in the case of GTR I had the chief executive in my office three weeks before saying that it would be fine. In the case of the teams running the Northern branch, they indicated to my Department that it would be a difficult start, but not on anything like this scale. I have set up the independent inquiry into what has gone wrong because I am not alone in this. When I talk to other people—on the independent assurance panel and the board set up to oversee the introduction of the timetable, the Rail North team and other people on the Rail North board, and the chair of Transport for the North—it seems that nobody was expecting this. That is completely unacceptable. We need to understand why it has happened and ensure that it can never happen again.

Mary Robinson Portrait Mary Robinson (Cheadle) (Con)
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My constituents have suffered huge delays, cancelled services and unacceptable travel uncertainty. What reassurances will the Secretary of State give Northern commuters that they will quickly have a functioning service and that pre-existing timetable gaps locally will also be addressed?

Lord Grayling Portrait Chris Grayling
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I have been very clear with the companies, as has the Rail North Partnership, that they need to get back to a position of stability. I expect that to mean that they will be running slightly more trains overall across the network than they were prior to 20 May, and that they will move over the next few weeks to reintroduce services in order to get back up to the expanded level that was supposed to exist. If there are individual issues, as I know there are in my hon. Friend’s constituency, the rail Minister and I will happily sit down and look at how we can address them as we move towards future timetable changes.

Tracy Brabin Portrait Tracy Brabin (Batley and Spen) (Lab/Co-op)
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On Saturday, two of my constituents, both in their 70s, were unfortunate enough to find themselves on the 23:03 Northern service from Leeds to Brighouse—the culmination of what they called a tortuous journey due to timetable chaos. They described the crammed Northern train as “filthy, a cheap product that has been neglected and flogged to death”. Does the Secretary of State agree with the Mayor of Manchester that Northern rail is now in the last chance saloon? Can he tell the House when he will stop passing the buck and take full responsibility for this chaos?

Lord Grayling Portrait Chris Grayling
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Both Northern rail and GTR have a whole lot of questions to answer and they are in the last chance saloon, so the hon. Lady is absolutely right. On the comments that her constituents rightly make about the trains, it is time for all those trains to be replaced, and over the coming months they are going to be.

William Wragg Portrait Mr William Wragg (Hazel Grove) (Con)
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The announcement of an inquiry and compensation is of course welcome. Leaving aside the atrocious implementation of the new Northern timetable, will my right hon. Friend the Secretary of State bang heads together to sort out the morning peak-time 45-minute gap in services that is affecting my constituents so badly?

Lord Grayling Portrait Chris Grayling
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We will do that. I will ask the Minister of State, my hon. Friend the Member for Orpington (Joseph Johnson), to sit down with my hon. Friend and go through this to make sure that we address some of the timetable anomalies that inevitably come out of a big change like this, which are not just short-term issues but actually structural issues in the timetable.

Lord Walney Portrait John Woodcock (Barrow and Furness) (Ind)
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Yes, of course the timetable changes have been a total fiasco, but does the Secretary of State not understand that people in Furness in Cumbria have been begging him for months to get to grips with this appalling situation? Before Northern took on the full franchise, there were 103 cancellations in a year on the Furness line. Last year, there were 212. Then, in the financial year that has just finished, there were 517—and that was before the timetable changes. Will he stop treating my constituents as though they have got the fag end of what is a pretty horrendous deal right across the country and take this situation seriously, starting tonight?

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Lord Grayling Portrait Chris Grayling
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I and my Department have taken the situation seriously for a long time. With regard to lines like the Furness line, this is why we are investing in new trains to provide a better service. The Cumbrian Coast line has to put up with knackered old trains that should have been sent to the scrapyard years ago. It is finally going to get new trains in the coming months, and they are long overdue.

Steve Double Portrait Steve Double (St Austell and Newquay) (Con)
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I welcome the Secretary of State’s statement and his commitment to investigate what has gone wrong and to take appropriate action as soon as possible. Does he believe that part of the answer to ensuring that this situation never happens again is combining the operation of track and train under one operator?

Lord Grayling Portrait Chris Grayling
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Bringing track and train back together is part of the solution for the railways. I am absolutely sure that the railways are going to have to change quite a lot as a result of what has gone on, which has been completely unacceptable. Their ways of working have got to change. We are going to need a reshaped approach for the future.

Thelma Walker Portrait Thelma Walker (Colne Valley) (Lab)
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Disabled passengers in my constituency have been told that they will not be able to catch certain trains as TransPennine has rolled out old stock to try to fix the broken timetables and reduce delays. Does the Transport Secretary agree that this is discrimination and unacceptable? Will he intervene to tell TransPennine that it must make sure that each train is compliant with disability legislation?

Lord Grayling Portrait Chris Grayling
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It is the duty of all train companies to ensure that that happens. The rolling programme of train replacement means that all trains will be disability-compliant. Every train in the north is being replaced with either a brand new train or a refurbished, as-new train. I will continue to make the point to all train operators—as will the Under-Secretary, my hon. Friend the Member for Wealden (Ms Ghani), who is responsible for accessibility—that they have to make a priority of this.

Damien Moore Portrait Damien Moore (Southport) (Con)
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My right hon. Friend has already visited my constituency and seen the level of frustration and concern about the timetabling. Will he continue to engage positively with me and with rail passengers’ groups so that we get the best possible service for Southport rail users?

Lord Grayling Portrait Chris Grayling
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I absolutely agree with my hon. Friend. We need to work together to make sure that we get some services back to Piccadilly, which I know is very important to so many of his constituents. He and I will work together on that.

Stephen Twigg Portrait Stephen Twigg (Liverpool, West Derby) (Lab/Co-op)
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Does the Secretary of State recognise the very deep anger among Northern Rail passengers in Liverpool and elsewhere about what has happened? Let me press him on the issue of compensation. He says that there will be a special compensation scheme. In the past week, constituents have been in touch who have had only partial compensation because they hold a Merseytravel Trio ticket and Northern will not compensate them for that part of the journey. Surely appropriate redress must mean full compensation for every passenger.

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Lord Grayling Portrait Chris Grayling
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That is a very serious point, and I am happy to make sure that it is dealt with. There were some similar issues with Southern in relation to Oyster card holders. We need to make sure that the travellers who should be entitled to compensation do get that compensation. That is why we are not rushing into announcing details of the scheme right now: we are going to make it right.

Mark Menzies Portrait Mark Menzies (Fylde) (Con)
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For over six months, my constituents have been using bus services during electrification of the Blackpool to Preston railway line. The current chaos therefore comes at the worst possible time when people were looking forward to a good service, and they are absolutely gutted. Can the Secretary of State assure me that they will be able to enjoy the multi-million pound investment that has gone in? When will he put the full force of his weight behind Northern Rail to make sure that it fixes this problem now? Can my constituents look forward to getting the railway that they had hoped for?

Lord Grayling Portrait Chris Grayling
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My hon. Friend puts his finger on the frustrations. On his line, the disruption has been a result of long overdue investment in improvements for the future and a commitment to railways in the north. It is a tragedy that the electrification delay has had such disastrous effects for timetabling across the whole area. We need to sort out these problems in the short term. We need to get the electrification of his route up and running as quickly as possible so that all the improvements that were planned actually happen.

Tom Brake Portrait Tom Brake (Carshalton and Wallington) (LD)
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For four years, GTR has failed to run services efficiently and provide sufficient drivers. So before the Secretary of State walks the plank, will he do two things? First, will he confirm that any compensation that is going to be paid will be based on the timetable that the company should have been running, or indeed better than that? Secondly, will he consider reversing a U-turn that he performed some months ago? He had proposed handing over the services in suburban London to the Mayor of London when the Foreign Secretary was the Mayor, and then changed his mind when Sadiq Khan became Mayor. Will he reconsider that decision?

Lord Grayling Portrait Chris Grayling
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I never took that decision in the first place. It is my view that services running outside London should not be controlled by an elected representative inside London. The approach that we have taken in the north, the west midlands and elsewhere, and have offered in London, is one of partnership so that we get involvement from both sides. That is the right way to do it. With regard to handing over services to the Mayor, London Overground is a franchise run by Arriva, the same company that runs Northern, so I am at a loss as to why people think that that is a magic solution for the future.

Maria Caulfield Portrait Maria Caulfield (Lewes) (Con)
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Do we really need a review before action is taken? People who commute from Lewes, Polegate, Seaford, Newhaven and many more stations have had to endure not just the timetable changes, but 18 months of strike action and 18 months of misery while the London Bridge works were happening, and we now have fewer trains than ever before. When trains do run, they sometimes do not stop, as happened in Lewes and Polegate today, and when they do stop, passengers cannot get on because of short formations, with trains going down from 12 carriages to four today. The only question my constituents have is, “When is Southern Rail going to lose its franchise?” If I can be helpful to the Secretary of State, the answer should be “Now.”

Lord Grayling Portrait Chris Grayling
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The important thing to do is to make sure that these problems are sorted out. It may be that at the end of this there is a franchise change, but I want to do anything like that in the right way, in the right timeframe, and in a way that is justifiable. I have to fulfil contractual commitments. I have to look at where culpability lies. We need to go through that process first. In the meantime, having short-formation trains on Southern, which otherwise is performing pretty well, is completely unacceptable, and it needs to fix that straight away.

None Portrait Several hon. Members rose—
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Lloyd Russell-Moyle Portrait Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)
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Thank you, Mr Speaker.

If someone conspired to break into my garage and steal or immobilise my car, they would face the full force of the law. The Secretary of State’s Department has conspired with the railway companies in an incompetent manner to change the timetables, and despite repeated warnings from the Opposition, the companies went ahead with it. When will they face the full force of having their franchises stripped from them, or when will he be brave enough to face up to this and resign?

Lord Grayling Portrait Chris Grayling
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I have mentioned to the House the industry bodies that we have put in place. It is only a week since Labour was demanding that the railways were run by rail professionals—actually, they are. Those rail professionals have been overseeing this process, they got it wrong, and that is why we are having the inquiry.

David Morris Portrait David Morris (Morecambe and Lunesdale) (Con)
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I have to thank the Secretary of State, because he has tried to accommodate me three times today. I think we should have some brevity in the House, because parties of all colours have the same problems. The reality is that this is a mess. We have to get a realistic timetable in order and make sure that when these train companies cancel—I saw it today at Lancaster station, when Northern cancelled on the commuters that I was standing on the platform with—they have alternative transport already in place. I ask the Secretary of State to sort these companies out, but in a measured way, because I realise the pressures he is under, and I am mature enough to realise the contractual obligations that he has to consider.

Lord Grayling Portrait Chris Grayling
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This is the important thing. It is easy being the Labour party, demanding this and demanding that, but we have to do what needs to be done in the right way, focusing first on getting a stable timetable, then identifying what has gone wrong and the culpability, and then taking appropriate action. That is what we will do.

Afzal Khan Portrait Afzal Khan (Manchester, Gorton) (Lab)
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The new timetable came into effect today, but my constituents have the same old problems. Despite axing 165 services, more than 60 trains had been cancelled by 8.30 am. All the while, rail fares have risen by 32%, and the promised electrification has been scrapped. Can the Secretary of State tell me when my constituents can expect compensation and improved services, and what personal responsibility he takes for the chaotic mismanagement of this country’s rail network?

Lord Grayling Portrait Chris Grayling
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The Labour party keeps saying that it wants the Government to run the railways. We do not at the moment. The temporary Northern timetable has been put in place this week. Some adjustment of rosters is taking place right now. I hope and believe that by the middle of the week, we will return to a point of stability, with a lower level of cancellations than today and tomorrow and getting back to a reasonably dependable timetable within a day or two. That is what I am expecting, that is what we have been promised, and that is what we will be demanding of Northern Rail.

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Huw Merriman Portrait Huw Merriman
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Thank you, Mr Speaker—I’m always your man.

In the two years that the Secretary of State for Transport has been in post and I have sat on the Transport Committee, he has always been very honest, open and direct about the need for change. For any project management exercise to fail to get the sign-off from Network Rail and for it to find out only three weeks before, by which time it is too late to turn the oil tanker around, has got to be a spectacular failure. Who was the project manager and penholder for this exercise?

Lord Grayling Portrait Chris Grayling
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That is a very interesting question. My view is that the Network Rail timetabling process has gone badly wrong, and I cannot understand why GTR did not raise the alarm. I have asked Professor Glaister to go through all this because I want to understand exactly where the accountability should lie and be able to take appropriate action.

Liz McInnes Portrait Liz McInnes (Heywood and Middleton) (Lab)
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Northern Rail has cancelled so many trains that an app has sprung up called “Northern Fail”, to help commuters in the so-called northern powerhouse make even the most basic of journeys. What will the Secretary of State do to ensure that these commuters, who have forked out for childcare, taxis, hire cars and hotels, are adequately and fully compensated?

Lord Grayling Portrait Chris Grayling
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I am very clear that we have to provide a compensation scheme of the kind that was delivered to Southern passengers after the huge disruption they experienced a year ago. I am very clear that that is what will happen.

Jeremy Quin Portrait Jeremy Quin
- Hansard - - - Excerpts

To reassure you, Mr Speaker, an hour’s wait is sadly not unusual for Horsham right now. I wish we were getting back to a far more regular service. Significant investment has been put into our line, which was meant to result in a far better service for our commuters. I welcome an independent inquiry to find out what on earth has gone wrong, but in the meantime, can we at least ensure that where there are fewer, busier trains, they are not short-form, so that people can get on them?

Lord Grayling Portrait Chris Grayling
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That has to be dealt with, and we will communicate that to GTR. If there are fewer trains running, they should be not short-form trains.

Luke Pollard Portrait Luke Pollard (Plymouth, Sutton and Devonport) (Lab/Co-op)
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The Secretary of State told the House that sorting out the timetable chaos was his Department’s No. 1 priority. That is a phrase he has used before about Dawlish and the resilience work in the far south-west, which was apparently his No. 1 priority. What is his No. 1 priority, and will Northern and GTR passengers have to wait the years that passengers in the far south-west have had to wait for action on Dawlish?

Lord Grayling Portrait Chris Grayling
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The work on Dawlish has already started, as the hon. Gentleman knows. In terms of the infrastructure period that is about to start, delivering that work is, in my view, the most important capital project in the country. The most important priority on my desk now is self-evidently to get this sorted.

Grahame Morris Portrait Grahame Morris (Easington) (Lab)
- Hansard - - - Excerpts

My constituents are also experiencing their share of misery. The hon. Member for Lewes (Maria Caulfield) said that trains serving her constituency had four carriages, but most of the trains serving mine only have two carriages to begin with, so they are already overcrowded even before any cancellations. It is clearly a failure of planning and co-ordination and a lack of integration. Will the Secretary of State or his successor give an assurance to the travelling public that a similar fiasco will not occur with the next timetable changes in December?

Lord Grayling Portrait Chris Grayling
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We are working extremely hard to make sure that this does not happen again. We have to deal with the short-term problem. We also have to make sure that this is not repeated with the December timetable change or future timetable changes. Where major investment leads to a major change in services, we cannot have a situation where that causes chaos on the network again.

Judith Cummins Portrait Judith Cummins (Bradford South) (Lab)
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Does the Secretary of State understand the real human cost of this fiasco and the fact that every disrupted journey represents chaos for our constituents and losses for our businesses? He talked in his statement of major failures and holding the industry to account, but when will he take responsibility and hold himself to account over his repeated and major failures?

Lord Grayling Portrait Chris Grayling
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My job is to do everything I can to make sure that the industry gets itself back on the straight and narrow, and that is what I will do.

Diana Johnson Portrait Diana Johnson (Kingston upon Hull North) (Lab)
- Hansard - - - Excerpts

We have been going for an hour and fifteen minutes now, and the Secretary of State has failed to take any responsibility for the current chaos on our rail system. George Osborne wrote in The Times today about better economic advantages for the Humber area if we have faster train journeys, which I am sure the Secretary of State agrees with. However, with the new TransPennine Express timetable, the early indications are that most journeys across the Pennines are taking 15 to 20 minutes longer. Does he take any responsibility for that? How does it fit with the Government’s plan for the northern powerhouse and improving connectivity between east and west by speeding those journeys up?

Lord Grayling Portrait Chris Grayling
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What we are delivering is this: starting next spring, the £3 billion upgrade to the transpennine railway will make a huge difference to journeys; the TransPennine franchise is bringing in brand new intercity express trains in the coming months; and of course, Humberside will also benefit from the huge investment taking place in new trains on the east coast main line.

Yvonne Fovargue Portrait Yvonne Fovargue (Makerfield) (Lab)
- Hansard - - - Excerpts

My constituents have been suffering outdated Pacer trains, overcrowding and cancellations for years, and the recent timetabling chaos and the removal of the transpennine service just exacerbated that. A promise of a better service by 2020 is just not good enough. My constituents need to get to work now, and no compensation will make up for the written warnings and even the job loss that one person has told me about. Will the Secretary of State at least consider insisting that TransPennine reinstates the stop at Wigan until he can sort out the Northern chaos?

Lord Grayling Portrait Chris Grayling
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The hon. Lady and I are meeting later, so I will happily talk through that with her.

Jonathan Reynolds Portrait Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)
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Northern’s new emergency timetable takes 165 services out of the timetable. It has been running for the first day today. A further 40 trains have been cancelled and punctuality is running at under 50%. Those figures were correct as I came into the Chamber at 5 o’clock, so they do not include the evening peak. The one question the Secretary of State has not answered so far is this: who in the Department for Transport gave approval for this timetable change to go ahead?

Lord Grayling Portrait Chris Grayling
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Timetable changes are not approved by the Department for Transport. These are matters for the different parts of the rail industry; they are the ones who take those decisions.

Julie Cooper Portrait Julie Cooper (Burnley) (Lab)
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The new timetable implemented by Northern Rail on 20 May has brought chaos and misery to Burnley rail users, with 22 trains cancelled on one single day and over 50% of the trains from Burnley Manchester Road station being delayed or cancelled altogether every single day. I have been listening to the Secretary of State answering questions for over an hour. Maybe I missed this, but I still do not understand why these timetable changes were permitted to go ahead when it was known that infrastructure works were incomplete and there was a shortage of train drivers. I would be grateful if he could cast some light on that. Most importantly, could he tell my constituents when they can expect the restoration of a reliable service? The interim timetable that started today has not improved things one little bit.

Lord Grayling Portrait Chris Grayling
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My understanding is that there is a need to align train crew rosters with the new timetable. That will take another 48 hours, but I am assured by Northern that the new timetable introduced this week should, as the week goes by, restore stability to that network. That is certainly—absolutely 100%—my expectation. It is essential for the hon. Lady’s constituents and that has to be delivered.

--- Later in debate ---
Kate Green Portrait Kate Green
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These are not recent problems. They predate the introduction of the new timetable. They predate the delay in the infrastructure improvements, and I have been talking to the Secretary of State, in this Chamber and in private meetings, for month after month about the problems my constituents are experiencing. He says that he took advice from industry experts, and of course he should, but why did he not also take advice and ask questions based on the information coming from Members of this House and on the information from the travelling public that has been all over social media for months? What questions did he ask these industry experts?

Lord Grayling Portrait Chris Grayling
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The whole point about the new timetable—it has clearly not worked and it must work—is actually to deliver a more reliable service through reshaping timetables in a way that means there is less congestion and more services can be run for passengers. This has clearly not worked at all. This timetable was put in place for the best possible reasons and it has so far delivered the worst possible outcomes. That must change.

Debbie Abrahams Portrait Debbie Abrahams
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I first contacted the Transport Secretary back in November to raise concerns about the proposed timetable and, unfortunately, he completely ignored my concerns. Today’s interim timetable has brought even more havoc to my constituents who use Greenfield station, with five—up to now—trains being cancelled. What immediate action is he going to take to resolve some of the issues not just about timetabling, but about capacity? Will he ensure that, this time, passengers are involved?

Lord Grayling Portrait Chris Grayling
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Of course, the reality is that the most important thing, as I have set out, is that Northern Rail needs to deliver this week, as it has promised, a more stable timetable and something that people can rely on. Step by step, it then needs to put back in place the additional services that were supposed to deliver better options for the hon. Lady’s constituents and others. That clearly has not happened and I deeply regret that. It is unconscionable, and infuriating to all of us in government, that the things that were supposed to deliver a better outcome for everyone have not done so. We will not be anything other than relentless in pushing the rail industry to ensure that those benefits are delivered. They should be there now. They are not. It is worse than it should be. That has to change and it has to change quickly.