Oral Answers to Questions
Lord Grayling Excerpts(6 years, 6 months ago)
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Tommy Sheppard (Edinburgh East) (SNP)
The Secretary of State for Transport (Chris Grayling)
The Government’s rail sector report was published in December and included an analysis of the rail industry. We keep our analysis under constant review. Our future relationship with the EU on rail will be a matter for the negotiations. Both the UK and the EU have greatly benefited from investment in each other’s rail markets. We want that to continue as the UK leaves the EU.
John Mc Nally
The Secretary of State will be aware that passengers in Scotland have been protected from the impact of fare increases as a result of the Scottish Government’s cap of RPI minus 1%. Will he not take a leaf out of the Scottish Government’s book to ensure that passengers are not hit in their pockets as the result of his Government’s inability to provide even basic certainty over Brexit?
Chris Grayling
I am not sure quite what that has to do with our future relationship with the EU, but I want the rate of increase of rail fares to come down. The biggest barrier to that is the Labour party’s and the trade unions’ insistence that the RPI measure has to be at the heart of every pay increase in the rail industry. The industry collectively needs to move to RPI, but the training manuals for the unions that back the Labour party insist that it is unacceptable to negotiate on anything except an RPI increase.
Tommy Sheppard
The Government often cite EU regulations on state aid as a constraint on their agency. Can we therefore look forward, after Brexit, to innovative new approaches to the public ownership of the railways, or will the Secretary of State continue to sell rail services to the state-owned companies of other EU countries?
Chris Grayling
We have a diverse rail market, with investment from the UK and international investment. I hope very much that after Brexit we will not become a country that does not welcome international investment. We are an outward-facing global nation, and I hope that will continue.
Kevin Foster (Torbay) (Con)
In the Secretary of State’s assessment of the rail industry post Brexit, did he include the vital nature of securing resilience in the coastal railway at Dawlish, given the link to Falmouth docks and the freight services that bring in exports?
Chris Grayling
I want to reiterate that this is an absolutely crucial project for our railways. Network Rail is currently doing preparatory work for the very necessary improvements at Dawlish. I have given an absolute commitment that those works will go ahead. I regard this project, to make sure a proper resilient railway for the future is delivered to the south-west, as the most important infrastructure project in the country. It is one thing having a railway that is not quite up to date; it is quite another having a railway that gets cut off. We will not let that happen.
Martin Whitfield (East Lothian) (Lab)
The east coast main line will be very important following our departure from Europe. Will the Secretary of State guarantee that smaller operators, such as ScotRail, have a say in what happens to rail?
Chris Grayling
It is really important that we protect the interests of passenger and freight operators. I have been clear that the new board leading the integration and development of the London North Eastern Railway will have representatives whose job is to protect the interests of smaller operators.
Tim Farron (Westmorland and Lonsdale) (LD)
EU rules clearly did not prevent the Government from taking the east coast franchise off Stagecoach last week, which shows their power to remove a franchise from a failing operator is not hampered by them. Given that this week we managed to pass 300 cancellations on the Lakes line in Cumbria since the beginning of April, and the enormous and catastrophic impact that is having on commuters, tourists and GCSE students trying to get to their exams, will the Secretary of State listen to the exasperated travellers of Cumbria and intervene to strip Northern of both its Furness and Lakes franchises—and do it today?
Chris Grayling
Let us be clear: the situation with Northern has been unacceptable. As I said yesterday, I will this morning chair a conference call with the Northern leaders. This is the most devolved franchise. It is a partnership between Northern leaders and the Department for Transport, but it is not solely led by the Department. None the less, it is no less important to me that we get this situation resolved. I am very clear that this problem has arisen for two prime reasons: the problems with electrification Network Rail is carrying out on the line through Bolton and the failure of Network Rail to deliver a finalised timetable in time. When the hon. Gentleman talks about the need to strip the franchise and renationalise, he is shooting at the wrong target. This is a Network Rail failure and it must not happen again.
Alan Brown (Kilmarnock and Loudoun) (SNP)
We know that since rail privatisation the Secretary of State thinks magic money appears from nowhere with no risk to the taxpayer, but that is not the case. When it comes to infrastructure, the UK relied on £35 billion of loans from the European Investment Bank between 2011 and 2015. Where will that money come from for rail infrastructure post Brexit?
Chris Grayling
We are a substantial net contributor to the European Union, so the money given to the UK from different European funds actually originates in the UK. We will be able to spend our money in the way we see fit. We are of course spending record amounts of money on rail infrastructure to develop what needs to be a better, expanded and more resilient rail network.
Mr Bob Seely (Isle of Wight) (Con)
Tom Tugendhat (Tonbridge and Malling) (Con)
The Secretary of State for Transport (Chris Grayling)
Two weeks ago, Mark Carne, the chief executive of Network Rail, and I launched the company’s digital railway strategy in York, where we announced that the industry should make plans for all future renewals to be digital or digital-ready. I have already approved funding to develop digital schemes in Moorgate and the south-east, and in particular, I have set out plans for the new TransPennine route. The £2.9 billion modernisation, starting around this time next year, will be Britain’s first, principal inter-city digital railway, and very necessary it is.
Mr Seely
Later this month, the priced option for the Island line in my constituency will be presented. I will be writing next week in support of that priced option. Can the Minister assure me that the Government understands the importance of the Island line to the Island and the importance of investment in it—in track, railway and stations such as Ryde Pier Head, which is on the pier, and Ryde Esplanade, which is a key gateway? Is he aware of my strong support for a feasibility study into extending the Island line south and west?
Mr Speaker
I must tell the hon. Gentleman that one of his constituents, not very far from here, has been listening intently to his question.
Chris Grayling
I know indeed, Mr Speaker—in fact, he used to be a constituent of mine and is now benefiting from the wonderful environment that is the Isle of Wight. My hon. Friend has been an excellent champion for it since his election. I can assure him that the Rail Minister, my hon. Friend the Member for Orpington (Joseph Johnson), and I will be taking careful note of the plans as they come through, and we will work with him to try to find the best way to ensure that his constituents have the best service that it is possible to deliver to them in future.
Mr Speaker
I call Tom Tugendhat—where is the fella? He has obviously beetled out of the Chamber. It is a pity that the hon. Member for Tonbridge and Malling is not here, but we will bear up stoically and try to manage without him.
Karen Lee (Lincoln) (Lab)
Chris Grayling
Let me be very clear: it is my intention that the commitments to new services made in the Virgin Trains franchise are delivered. The hon. Lady will know, as I have told the House before, that there is an issue and has been for some while around the timing of some of those services because of problems with infrastructure improvements. I am putting Network Rail under as much pressure as possible to deliver those as quickly as possible. I give her and all Members who are waiting for these new services an assurance that I will make sure that they are delivered.
Robert Neill (Bromley and Chislehurst) (Con)
Can the Secretary of State tell me how the roll-out of the digital strategy, which is in itself a good thing, on my local lines is going to stop me receiving tweets like the one I received this morning? It said:
“Chaos for 4th day on SE lines—trains cancelled, late, diverted, not stopping, short formation & angry passengers”.
How is the strategy going to help that?
Chris Grayling
There are benefits of digital technology, but my hon. Friend will be aware that this is a difficult week on the railways, as I have explained. It has happened because of the late delivery of the timetable. This is the second time that it has happened in six months. I have already had discussions with Network Rail about this. It must not happen again. What the digital railway will do is create a railway that can run more trains more reliably. It gets rid of the risk of traditional signal failures, which are a big part of the frustrations that many commuters face, and I want to see, over the next few years, our stopping replacing old-fashioned traffic-light signals and using digital technology instead.
Luke Pollard (Plymouth, Sutton and Devonport) (Lab/Co-op)
A digital railway is vital for improving capacity in the far south-west but will not necessarily improve journey speeds. If our journey times are to be long, they at least need to be productive, so can I ask the Secretary of State to commit to working with colleagues at the Department for Digital, Culture, Media and Sport to improve our mobile and wi-fi signals to remove all the notspots in the far south-west, especially on rail journeys to Plymouth?
Chris Grayling
Sometimes, we disagree across the Chamber, but on this one I completely agree with the hon. Gentleman. We are looking at the best options to do this. I think that we should be getting mobile operators to put up more masts down the route, and particularly as we move to a 5G network, I want to see that 5G network up and down the railway—and not just for passengers; it helps the digital railway as well. On this one, I am absolutely with him.
Chris Grayling
I commend my right hon. Friend for his very good question. The transition to digital technology basically means that in future, rather than having a red-amber-green signal by the trackside, the signalling is done automatically from the cab of a train. Each train will know how far it is to the train in front. It is therefore possible to manage the network more efficiently, to run trains safely closer to each other and to deliver more capacity for passengers.
Mr Speaker
It all sounds very sophisticated, although it is a bit above my pay grade, I am bound to say.
The Secretary of State for Transport (Chris Grayling)
It was the hooting of a bus horn.
Ms Ghani
It happened because I was about to mention two very important packages of funding.
The Department contributed just over £32 million towards the £43.2 million Manchester cross city bus package, which was completed in 2017. Now we need another little beat of the drum, because there is another huge sum coming up. The Greater Manchester combined authority received a guaranteed allocation of £243 million from the £1.7 billion transforming cities fund to improve public transport. If the hon. Gentleman is still not satisfied, I suggest that he talk to the Mayor.
Adam Afriyie (Windsor) (Con)
The Secretary of State for Transport (Chris Grayling)
The Government have always been clear that any scheme for additional airport capacity should be financed by the private sector. The Airports Commission concluded that this was a viable way forward. As set out in the revised draft airports national policy statement, independent financial advisers have undertaken further work and agreed that expansion of Heathrow can be carried out without public finance.
Adam Afriyie
I thank the Secretary of State for the answer. The report by the Select Committee on Transport on the airports national policy statement said that the Lakeside Energy from Waste plant should be treated
“with equivalent recognition as the Immigration Removal Centres and that the replacement of its facilities be accounted for in the DCO process.”
Will the Secretary of State confirm that his Department has assessed any infrastructure upgrade needed, such as that to roads and powerlines, to accommodate the relocation, and will those costs be met by the taxpayer?
Chris Grayling
First, I extend my thanks to the Select Committee, which has produced a thoughtful report. We will be responding to the report in detail very shortly; indeed, my officials are speaking to the Chair of the Committee to make sure she is fully up to speed with how we are handling all this.
Of course it is essential that appropriate provision is made for the energy from waste plant, and I think that provision should be funded by the airport as part of its work. I do not see why the taxpayer should bear the cost. I assure my hon. Friend the Member for Windsor (Adam Afriyie) that the plant and other facilities, and the communities around the airport, are very much on my Department’s mind as we take these matters forward.
Ruth Cadbury (Brentford and Isleworth) (Lab)
The Transport Committee report on the national policy statement found that the Heathrow north-west runway proposal has little, if any, advantage over other schemes, or even over doing nothing at all, for passenger growth or for the number and frequency of long-haul routes, and that the proposal would actually cut international links for non-London regions and would have little economic benefit to the UK, so are the Government pushing ahead with this hugely expensive and environmentally damaging project?
Chris Grayling
When I am ready to update the House, I will of course come back to do so in person. The Committee recommended that the Government progress with their work, and it made a number of very helpful and constructive suggestions about elements to be included within that work. I remain absolutely of the view that airport expansion is necessary for the economy of this country. The important thing is that we deliver it in the best possible way for local communities.
Kelvin Hopkins (Luton North) (Ind)
May I suggest to the Secretary of State that a much cheaper and more practicable alternative to the Heathrow third runway would be to use the considerable spare capacity and long runway at Birmingham airport by electrifying and upgrading the Chiltern railway line and linking it to Crossrail? This would provide for a fast, direct, non-stop shuttle service between central London and Birmingham airport and would help to solve the south-east airport capacity problem. Will he give serious consideration to this proposal?
Chris Grayling
Of course the arrival of HS2, with projected future growth in passenger numbers at our airports, will provide an alternative and will provide for a bit of competition between airports, which is no bad thing. The hon. Gentleman is right about that, but I do not think it is either one or the other.
Several hon. Members rose—
Karl Turner (Kingston upon Hull East) (Lab)
That is very kind, Mr Speaker. Thank you very much indeed.
Can the Secretary of State confirm whether he will be revising the airports national policy statement in the light of the 25 recommendations from the Transport Committee?
Chris Grayling
The hon. Gentleman and I sometimes spar vigorously across the Chamber, but I echo your words to him, Mr Speaker.
If the hon. Gentleman will forgive me, I do not think it is appropriate to talk about our response to the Select Committee report before our response is published, which will happen shortly. I simply give him the assurance that we are taking the recommendations very seriously. I certainly want to see many of the recommendations embedded in our planning as these matters go forward.
Andrew Bowie (West Aberdeenshire and Kincardine) (Con)
Anna Turley (Redcar) (Lab/Co-op)
The Secretary of State for Transport (Chris Grayling)
The UK ports sector is in an excellent position to facilitate growth in trade, both from the EU and from other countries, when we leave the EU. Indeed, many of the port operators have exciting plans to do so. Many UK ports have recently invested vigorously in capacity, to handle the largest container ships and to adapt to changing patterns of energy generation. We are seeing investment at crucial ports such as Dover, where the western docks are being developed to enable better use of capacity at the eastern docks to handle ferry traffic.
Anna Turley
Teesport in my constituency is going from strength to strength. It handles 5,000 vessels a year and more than 40 million tonnes of cargo. It is a gateway to the world, but especially to Europe, our largest trading partner. Will the Secretary of State guarantee that Brexit will not result in trading barriers and customs checks, or in lorries queuing down the A66?
Chris Grayling
The Prime Minister has been absolutely clear that this country is committed to frictionless borders. Teesport is doing a great job; I saw some of the firms that operate at the port only recently. That is one reason why I have announced the study into the potential reopening of the Skipton to Colne railway line, because one thing we lack for ports such as Teesport and, indeed, Liverpool, is better freight connections across the Pennines. Every time I talk to the port operators, that is top of their list.
Alan Brown (Kilmarnock and Loudoun) (SNP)
One of the Brexit myths is taking control of borders, yet the Secretary of State continues to say that there will be no further checks on transport at ports. Is that just because he does not have a clue about how the Government can put in place a system that allows checks to be made but does not cause carnage on the roads round about the ports?
Chris Grayling
No, I am afraid it is because the hon. Gentleman does not understand how ports operate today. It is not necessary to stop every lorry at a border—indeed, every lorry is not stopped at the border—to have a free flow of trade. Countries inside the European Union and countries that have no connection with the European Union manage to operate a free flow through ports and across borders, and that is what we will do after we leave.
Bob Blackman (Harrow East) (Con)
The Secretary of State for Transport (Chris Grayling)
Before I answer my hon. Friend’s question, it might be appropriate for the whole House to express our thanks to all of the transport workers who were involved in the planning and delivery of a smooth journey to and from Windsor last weekend for the royal wedding. It was a very smooth operation and it went gratifyingly well on what was a fantastic day for the country.
Bob Blackman
Drivers on the Jubilee and District lines are threatening all-out strikes on 6 and 14 June, bringing misery to literally millions of Londoners. Will my right hon. Friend join me in condemning this action, which will put the passengers and commuters of London in a desperate plight, and call on the Mayor of London to intervene to stop this strike?
Chris Grayling
In my view, there is never a justification for industrial action causing that degree of disruption to the lives of individual passengers and of other workers. It is not fair on them; it is the wrong thing to do. Disputes should be solved through means other than strike actions on our public transport system. However, I do remember being informed on regular occasions by the Mayor of London, when we had the troubles on Southern, that he would be much better at coping with these things because there would never be a strike on his watch. He has already broken that one, because he has had them already. It looks like he will have some more.
Andy McDonald (Middlesbrough) (Lab)
This week’s timetabling debacle is characteristic of all that is wrong with the railway. The Secretary of State told the press yesterday, and not this House, that Northern Rail issues were his top priority and that he would improve train driver rostering and driver recruitment to improve things, but he cannot simply tinker with rosters and pick new train drivers off a shelf. Does he not realise that it takes a year to train a driver and that roster changes have to be worked through, with the workforce, well ahead of their introduction?
Chris Grayling
First of all, the hon. Gentleman has not been following things too closely, because my recollection is that when I was in this House yesterday afternoon I expressly talked about the issues with the timetabling.
Secondly, Northern does not have a shortage in overall terms of drivers. The problem has been caused by the operational difficulties that resulted from, first, Network Rail’s failure to deliver the electrification to the schedule that was expected on the line to Bolton, and, secondly, from Network Rail’s failure to finalise timetables in time. That has been the prime reason for disruption, which was not helped, I might add, by an unnecessary work to rule by one of the unions.
What has happened has been unacceptable for passengers, but I also remind the hon. Gentleman that this is the most devolved franchise in England. The management of the franchise is shared by my Department and northern leaders through Rail North, so it is not simply a question of my Department. I will be working now to see whether Rail North together has done enough of a job in monitoring these problems.
Mr Speaker
I do not wish to be unkind to the Secretary of State, and he has certainly given us very full information, but let me say this. I gently chided the Minister next to him, the hon. Member for Wealden (Ms Ghani), for a mildly lengthy reply to one question, but he seems determined to outdo her. It is not a competition. Their replies are extremely informative, and I thank them for that, but we do not have unlimited time, although I do try to extend the envelope.
Andy McDonald
Northern Rail issues may be the Secretary of State’s top priority, but what about the long-suffering passengers on Thameslink and Southern? This is the fault not of 400 hard-working timetablers, but of train companies that do not have enough drivers with the right knowledge in the right places at the right time. Is it not the case that these train companies have had years to prepare for this and that this Secretary of State simply trashes the hard-working men and women across the industry who strive to deliver rail improvements? He simply throws them under the bus.
Chris Grayling
If I am not mistaken, the hon. Gentleman has just trashed the hard-working men and women of the train companies, who are trying to do a decent job for passengers; he cannot have it both ways. I am afraid that this is a problem with Network Rail, and I have said that it cannot happen again. We have now had the late delivery of the timetable twice in six months. It is not what I would have expected to happen at this moment in time, with such a big, complex change. None the less, it is happening because we are running vastly more trains to more destinations. New trains have been running this week, and there are people getting on trains this week who have a seat for the first time in four years. That is a good thing.
Robert Courts (Witney) (Con)
Peter Heaton-Jones (North Devon) (Con)
A week ago today, the Government announced funding of £83 million for improvements to the north Devon link road. [Hon. Members: “Hear, hear!”] Indeed—hear, hear. I thank the Minister for that decision. Will he join me in congratulating Devon County Council on the brilliant bid that has got this funding?
Chris Grayling
I am really grateful to Devon County Council for the work it has done. I am also very grateful to my hon. Friend for the arguments that he has brought forward about why this should be a priority. It is a sign of this Government’s commitment to the south-west of this country, where we are delivering actual projects that are really essential to local infrastructure and that are long, long overdue.
Alex Norris (Nottingham North) (Lab/Co-op)
Chris Grayling
We are just finalising this. I do not know if we have made an announcement on when it is going to come out, but it will come out very shortly. The midland main line is going through the biggest modernisation programme since the 1870s. The hon. Member for Nottingham South (Lilian Greenwood) referred to the question of timetable changes. There have been a number of difficult timetable changes, both in the London area and further up the line. However, this is all paving the way. When this route is completed properly in 2020, when we will have new trains, the railway will be much better than it has been for a century.
Nigel Huddleston (Mid Worcestershire) (Con)
What consideration has been given to breaking off the North Cotswold line into a stand-alone franchise once the GWR franchise comes to an end?
Tom Tugendhat (Tonbridge and Malling) (Con)
Thank you, Mr Speaker, for your indulgence—you have been very kind indeed.
However, one thing that has been less kind to us, sadly, is the timetable changes on GTR and Southeastern. Many people in the constituency I have the privilege to represent, and indeed many in neighbouring areas, are commenting on the lack of capacity taking people into London in the morning and home at night to West Malling, Kings Hill and other places on the Maidstone East line. What will the Government be doing to increase capacity to get in and out of London for these valuable people?
Chris Grayling
I can assure my hon. Friend that there has not been a change to capacity on the Maidstone East line. Some trains on the new timetable are faster and some are slower, but in overall terms the services will continue to deliver for passengers. Right now, as I explained to the House a little while back, we clearly have initial problems with the new timetable. This is the biggest logistical change that the railways have made for a very long time. My Department is working very closely with all those involved to try to get this sorted out as quickly as possible. But this is all about delivering more services, longer trains and new destinations across the south-east, and once it is bedded in, I think that passengers in his constituency and elsewhere will see the benefits.
Seema Malhotra (Feltham and Heston) (Lab/Co-op)
Will the Secretary of State update the House on his invitation for proposals on a southern rail link to Heathrow? This is of great interest to families and businesses in my constituency, with the potential for a direct rail link from Waterloo to Heathrow via Feltham.
Chris Grayling
That is very timely, because after this Question Time session I am going to meet a number of organisations that are interested in participating in this project. As the hon. Lady knows, we are going to deliver a massive improvement to service access around Heathrow. Western access will be delivered through the control period 6 process, and I aim for southern access to be a privately funded project. This has enormous potential to link not just Waterloo to Heathrow but to link parts of the south-west network through Heathrow on to Paddington.
Stephen Metcalfe (South Basildon and East Thurrock) (Con)
As my right hon. Friend will know, 2018 is the Year of Engineering. As my local contribution to that, I am organising an engineering showcase in Basildon town centre on 14 July. Will he encourage other Members to consider doing a similar thing in their own constituency? May I also invite him to come and join us to celebrate all the fantastic engineering going on in Basildon?
Chris Grayling
I am really grateful to my hon. Friend for the work he is doing as our ambassador for the Year of Engineering. He is a tower of strength in making this a successful year. We have hundreds of firms involved around the country, and I encourage other Members to take advantage of what he is doing and to lay on an event for new students in their constituency this autumn, as I will. This is a great opportunity to unite the whole House in saying that engineering is a great profession and we need more young people to go into it.
Mr Dennis Skinner (Bolsover) (Lab)
Approximately two months ago, I asked the Secretary of State for a meeting with the Newton people who, because of HS2, are going to see more than 30 houses knocked down in their small village. Has the meeting been arranged yet?
Mr Speaker
I am sure the matter will be sorted out erelong; I very much hope it will.
Bill Grant (Ayr, Carrick and Cumnock) (Con)
Network Rail is responsible for Ayr railway station in my constituency, which has important links with Stranraer and Glasgow. The functionality and passenger safety at that station is under threat due to the derelict state of the nearby Station Hotel, which is privately owned. May I urge my right hon. Friend to encourage Network Rail to seriously engage with the owners of that hotel and the local council, to avoid a catastrophic event at Ayr railway station?
Chris Grayling
First, there is no question but that we are very happy to have a meeting between Ministers and the hon. Member for Bolsover (Mr Skinner). If his office gets in touch, we will sort that.
On my hon. Friend’s question, I would like to find out a bit more detail, because clearly we would like to ensure that that problem does not exist. If he provides a bit more detail to myself or my hon. Friend the rail Minister, we will get on to the case.
Christian Matheson (City of Chester) (Lab)
The recent court case that found the collection of tolls at the Mersey crossing unlawful has afforded Ministers an opportunity to pause and review the operation of those tolls, which are hated across my region. Will they take that opportunity and review the tolls?
Paul Masterton (East Renfrewshire) (Con)
Residents in Uplawmoor are currently campaigning against proposed airspace changes at Glasgow airport. I very much welcome the Department’s decision to move that process on to the new Civil Aviation Authority guidelines, but does the Secretary of State agree that it is vital that airports carry out meaningful consultation with affected communities and do not try to bamboozle and bludgeon them into submission with technical jargon that they cannot understand?
Chris Grayling
I absolutely agree with my hon. Friend. The management of airspace and flight paths is extraordinarily sensitive for local communities. Airports that engage well have a much easier time, and those that do not engage properly pay a price. I agree that community engagement is really important.
Ronnie Cowan (Inverclyde) (SNP)
When the east coast railway franchise is once again open to bids, will the bidding process include a prosperity weighting clause, in keeping with proposals for some defence contracts?
Chris Grayling
When we form the London North Eastern Railway in its final form, as I have said, it will not be a conventional franchise bidding process. It will move to a completely new approach, as I set out in my statement earlier this month, and we will bring more details to the House about the shape of that in due course.
Kevin Foster (Torbay) (Con)
I know the Secretary of State shares my excitement about the fact that in July we will see the first new Hitachi trains on a booked service west of Taunton. Will he update us about the wider progress being made with the new Great Western franchise, particularly about the idea that it may be split?
Chris Grayling
I have now got back the responses to the consultation, and I am carefully considering my response to them. I give my hon. Friend an assurance that I have a fairly clear message from the people who responded, and I will take that view very carefully into account in how I take this forward.
Graham P. Jones (Hyndburn) (Lab)
When will the Government stand up for small towns in the shires of this country? While the cities get new trains and powers over bus services, the small towns in the heartlands, such as Lancashire, get nothing. This Government do not seem to care about small towns.
Chris Grayling
It is nice to finish with a degree of hokum from the Opposition. Lancashire has benefited, for example, from the Heysham relief road—connecting two smaller centres in a way that is absolutely vital if we are to unlock parts of the economy—and, starting later this year, all the small towns in Lancashire are getting new trains. Once we have bedded in the timetable and overcome these infuriating problems, the Northern Rail franchise will deliver more services in Lancashire—and, indeed, in Copeland, where my hon. Friend the Member for Copeland (Trudy Harrison), who has now gone, had the pleasure last weekend of travelling on the west Cumbria line’s first Sunday service in decades.
Transport Secretary: East Coast Franchise
Lord Grayling Excerpts(6 years, 6 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Secretary of State for Transport (Chris Grayling)
What a lot of incoherence from the Labour party and the hon. Member for Middlesbrough (Andy McDonald)! Who does the hon. Gentleman think runs the railway today except rail professionals? It is a nonsense.
What we also have seen today is a classic example of the definition of the word “hypocrisy”. This morning, the Welsh Labour Government announced their plans for what will be a public-private partnership to develop a new metro service on the Welsh valley lines. This afternoon, the Labour party at Westminster is trying to censure me for announcing a public-private partnership to improve services on the east coast main line. That says a great deal about what the Labour party has become.
Several hon. Members rose—
Chris Grayling
I will give way in a moment; let me make a bit of progress first.
I am not going to go through, line by line, the process that I have been undertaking in the past few months to reach what I believe is the right position for taxpayers, passengers and employees, but I have been struck by how little Labour Members understand about the way in which such a process must be managed, and how little they appear to understand the financial structure of franchising, rail laws, or the fact that the Government have to operate within the legalities of contracts and other laws.
I believe that, when confronting a failing franchise, the Government have three duties. The first is to ensure that any transition to a new arrangement is smooth and trouble-free for passengers. That was why we engaged an operator of last resort team in the autumn, meaning that, if necessary, they would have plenty of time to plan a smooth takeover. The team registered the name and prepared the website so that they would be ready if this situation arose. That is good practice.
The second of the duties is to ensure that the failing company fulfils its contract with the Government. If I had moved to make this decision months ago, the operator of last resort would not have not been ready and, moreover, I would have left taxpayers short-changed—they would have been given back less money than they should have been. When this contract ends, the taxpayer will have recovered all the money that it is possible to recover under the terms of the contract. That is a key duty of the Government in such a situation.
The Government’s third duty is to act according to due process, to be seen to assess all options properly, and to ensure that they have proper legal protection against any challenge to the decisions that I make. In the last few months, the Department has ensured that all those duties have been fulfilled, and I am grateful to all the members of the team who helped me to make that happen.
Mr Stephen Hepburn (Jarrow) (Lab)
The Secretary of State mentioned the Welsh railways, but the motion is not about the Welsh railways; it is about the east coast main line, which has gone bust three times in less than 10 years. The Government are still obsessed with financing the private sector through taxpayers and railway users, whose fares have gone up by more than 32%.
Chris Grayling
I will tell the hon. Gentleman what the motion is about: Labour Members saying one thing in one place and doing something else in another. Why should we take them seriously when they do that?
Alec Shelbrooke (Elmet and Rothwell) (Con)
Is there not a much bigger problem with the Labour party’s policy of nationalisation? Labour Members are trying to keep us in the single market, but the state aid rules within the single market mean that we cannot nationalise.
Chris Grayling
That is absolutely true. The irony is—I shall say more about this later—that it is the rail unions that have been campaigning against the same European laws that the Labour party wants to keep. This is another example of Labour’s nonsensical position.
Sir Greg Knight (East Yorkshire) (Con)
Will my right hon. Friend amplify something that he hinted at earlier? Will he confirm that he sees the Government as an interim operator of last resort and that this is not a permanent renationalisation?
Chris Grayling
I do not intend that the arrangement will be permanent. What I am saying—I have said this all along—is that when we move ahead with the full future shape of the LNER, we will not do everything in exactly the same way. What has been done on this railway in the past has not worked, and I do not intend to do it again. We will do things differently. We will consider giving the staff a stake in the business, and we will look at a different kind of investment from the private sector. However, as I shall make clear, I believe—the Welsh Government clearly believe—that a partnership between the public sector and the private sector is beneficial to the country, and not something to be cast aside as an evil and sinister attempt to do down passengers.
Ian Mearns
I am very interested by the comments that are coming from behind the Secretary of State. It is clear that he is in favour of state ownership of UK railways; the only problem is that it is German, Italian and French state ownership.
Chris Grayling
It appears that the Welsh Government—the Welsh Labour Government—take the same view, because they have just awarded the contract for the Wales & Borders franchise to a French state business in partnership with a Spanish-owned private business. Again, the Labour party says one thing in one place and does something else in another.
What we have heard from Labour in the last few months has been a litany of misinformation, misunderstanding and inaccuracy. Let us take the bail-out point. Labour Members claim that there has been a £2 billion bail-out. That is just plain nonsense. It is wholly inaccurate to claim that there has been a bail-out now, when the railway will continue to make a healthy profit for the taxpayer. It would equally be inaccurate to claim that Labour had bailed out National Express when it did not push through nearly £1.5 billion of future premium payments after 2009. The railway carried on making a profit then, and it will carry on making a profit now.
Andy McDonald
Had the franchise run its full term, would the Secretary of State have expected Virgin Trains East Coast to pay the full £3.3 billion in premiums?
Chris Grayling
Any franchise that runs its full term is expected to pay the full premiums, but when National Express went under and there was a further £1.5 billion of premiums to pay, that money continued to be paid by the new operator, in the same way that the premiums that we are expecting will continue to be paid by the operator in this instance. This is my point: the hon. Gentleman does not understand how the finances of the railways work, and that is why the Labour party is so unfit to be in opposition, let alone to govern.
Chris Grayling
I will give way first to the hon. Member for Easington (Grahame Morris) and later to the Chairman of the Transport Committee.
Grahame Morris
I am grateful to the Secretary of State. I hope that he will clear up that point about the last Labour Government and National Express. As a member of the Transport Committee, I heard a former Transport Secretary, Lord Adonis, explain that sanctions had been applied and that that particular operator was not permitted to bid for other franchises, which was a significant sanction.
Chris Grayling
If I am not mistaken, Lord Adonis actually accepted before the Select Committee that that did not happen. He thought that standing up in Parliament and saying that there would be a ban meant that there actually was one. I assure the hon. Gentleman that my Department looked very carefully at this and no evidence of any ban has been found. Moreover, a report from the National Audit Office stated that it had found no such evidence.
Huw Merriman
I was at the same Select Committee sitting. Of course, in the year following those events, the Labour party left office. What did happen at the time was that the then Secretary of State said that National Express would be stripped of other franchises, but of course that did not occur—I dare say that that could not happen legally—and the two franchises remained the same.
Chris Grayling
My hon. Friend is right. It is all very well Labour Members posturing, but we do have to operate within the law of the land, which is a fact that they sometimes miss.
Chris Grayling
I will take two more brief interventions, but then I must make some progress.
Lilian Greenwood
I want to deal with the loss of premium payments. According to the Secretary of State’s own “Short-term Intercity East Coast train operator 2018 options report”,
“the business revenues are estimated to reach around £2bn over the period of interim operation and the forecast income or premium for taxpayers is estimated at around a quarter of a billion pounds.”
That is about £420 million less than had been anticipated under the VTEC contract. Who will fund that black hole in the Government’s finances? Will it be taxpayers or will it be passengers? Will the Secretary of State have to cut other departmental budget lines, or has the Chancellor agreed to bail him out?
Chris Grayling
I am grateful to the hon. Lady for confirming that the talk of a £2 billion bail-out that we keep hearing from Labour is absolute nonsense. The reality is that we will drive this business as hard as we can to keep the revenues as high as we can. But if this railway were going to deliver as much money as was forecast, none of this would have happened in the first place.
Julian Knight
I thank my right hon. Friend for giving way; he is being most generous. He is forensically taking apart the Opposition’s case. Was he struck, as I was, by the fact that the hon. Member for Middlesbrough (Andy McDonald) did not even mention the cost of renationalisation? Across the board, the renationalisation of the utilities and the railways would cost more than £170 billion, and that is money that we simply cannot afford to spend.
Chris Grayling
My hon. Friend makes a good point. The Opposition never cost in their renationalisation plans the value of the trains that are currently privately owned, for example. That amount would be billions and billions of pounds, unless they are planning to nationalise the railways but have no trains to run on them, which is also a possibility.
Several hon. Members rose—
Chris Grayling
I am going to make some progress. I will want to talk about a couple of other issues, for the benefit of the House, but first I want to be clear about what the debate is all about.
The Labour party, in its guise here today, unreservedly hates the private sector. Other parts of the party do not, however. Even Lord Adonis, who has been attacking me for months, said yesterday that he thought that the franchising system was working well. I do not necessarily agree with him on that. I think that some serious changes are going to be needed, as I have said in the House before, but the solution is not to go back to where the French are today. President Macron is trying to move things away from the model that the Labour party is advocating, which would be disastrous for this country. Labour’s vision for the future of transport in our country is precisely the opposite of President Macron’s. When a country has a system that is struggling, losing money and closing routes, Labour’s vision is not the way for the future.
Several hon. Members rose—
Chris Grayling
I am not going to give way at the moment.
I will take no lessons from a party that says that it wants to dismantle capitalism and create a socialist society that looks fondly towards the disaster that has been Venezuela. Madam Deputy Speaker, did you hear the shadow Chancellor talking at the weekend about his vision for a socialist Britain? This is a man who does not even believe in private property. That would be disastrous for this country, and we must stand up very firmly against an ideology that would damage this country—[Interruption] Opposition Members talk about where investment comes from, but they do not understand that if the railway is in the public sector, that means it has to compete for precious capital day in, day out, and year in, year out, with other parts of the public sector—the health service and the education system. The reason why right now we have knackered old trains in the north of England—the Pacer trains that were no more than bus bodies bolted on to train wheels in the days of British Rail—is that British Rail, in the public sector, did not get the capital to invest properly, and that would happen all over again.
I am going to keep my remarks brief, because many Members want to speak. However, I do want to say a quick word about this week’s timetable issues on the railways, since the shadow Secretary of State raised them and they are of great concern to Members.
What we have seen in the last few days has not been good enough. No one should underestimate the logistical challenge of introducing a timetable change. The changes have been made for a very good reason: they mean a big expansion of services across the country. A timetable change of such a scale involves reorganising staff rotas, training staff for new routes, and reorganising how we deploy our trains. It needed months of preparation, and I am afraid that a number of things went wrong, but most particularly the fact that for the second time in six months, Network Rail was far too late in finalising planned timetable changes and left the rest of the industry struggling to catch up. I am not happy with that at all and I have told the leadership of Network Rail that it cannot happen again. But it is perhaps an uncomfortable truth for Labour Members, who keep talking about current problems as an excuse for nationalisation, that the problems that have arisen in the last few days are, to a significant extent, the result of failings in the nationalised part of the rail industry.
I know that many passengers have had disrupted journeys; that is not good enough. I am sorry that that was the case, and everyone in my Department and people elsewhere are working hard to get the problem sorted out. But this has been a major teething problem in what will be a step forward for the railways. Even with the unwanted cancellations, at the start of this week far more services were running than before the timetable change happened.
I know that some people have experienced change that they are not happy with. We cannot deliver everything for everyone, but this is going to mean better journeys for thousands of people up and down the country.
Mr Kevan Jones (North Durham) (Lab)
The right hon. Gentleman blames Network Rail for these problems and calls it a nationalised part of the railways, but he must remember that he is the Secretary of State. One of the main problems was the lack of consultation with the wider travelling public, or for that matter with many local Members of Parliament or local authorities.
Chris Grayling
There is a certain irony in Labour Members keeping on saying that they do not think I am competent and they do not think that the Department is competent, yet saying that they want to take a greater role in running a nationalised railway. That does not add up—it is a great contradiction—and the idea that they would be any better at it is for the birds.
The issue has arisen because of late delivery of the finalised timetable. That has created huge logistical problems, and two things have made them worse in the north. One is the fact that the electrification project on the Bolton line has gone wrong, which needs to be learned from very carefully indeed—[Interruption.] I do not electrify the railways personally. Secondly, there is the behaviour of the unions, which are currently, in the midst of a difficult period, going forward with work to rule in a way that is deeply regrettable.
Several hon. Members rose—
Chris Grayling
I will give way, but then I shall wind up my remarks so that others have a chance to speak.
Stephen McPartland (Stevenage) (Con)
I have been experiencing some of these teething problems due to the new timetable in Stevenage. There continue to be issues, but we are looking forward to more seats, more services and more destinations. I was on a train today from Stevenage. I had to get off at King’s Cross, but it went through to Gatwick and then on to Brighton, so we are excited about the prospects.
We are very proud to have the east coast main line stopping at Stevenage. We would like more services, but we cannot forget the passengers. They do not care whether ownership is private, mutual or public—they just want things to work. I am grateful that the Secretary of State has stepped in to try to make that happen.
Chris Grayling
That is the most important thing. It is why we are pushing forward with the integration of track and train to make the railway more reliable, and it is why we have a strategy to bring in digital technology to improve the performance of the railway. It is also why, for the first time in a long time, we are investing in significant extra capacity across the rail network.
We sat in opposition looking at things that needed to be done but just did not get done, but now we are in government, they are happening. Last week the fantastic new London Bridge station opened. In the summer, I will be in the midlands to open the new Kenilworth station. In July, I will be opening the expanded Liverpool Lime Street station. These are big and positive steps forward for the railway.
In total, over the next five years, we will be investing £20 billion on renewing the current infrastructure and another £9 billion on further enhancements, including the flagship trans-Pennine rail network. We are building HS2; we will shortly be opening Crossrail; we are just opening the Thameslink tunnels through central London; and we have done the Ordsall chord in Manchester. [Interruption.] The £2.9 billion trans-Pennine rail upgrade will begin in the spring of next year and make a massive difference to passengers.
The thing that passengers will probably notice the most, however—this is being funded by the private rather than the public sector—is all the new trains that are arriving. Every single train in the north of England is being rebuilt, starting from later this year, with all the Pacer trains going to the scrapyard, and every train in East Anglia. The new trains asked for by Opposition Members are arriving on the east coast main line later this year, and new trains are coming to the south-west, the midlands and the south. There will be new trains across the whole country because this Government are investing in our rail network. This Government want to give a better deal to passengers, and this Government are going to do what works. All we hear from Labour Members is ideology from a party that cannot quite work out what it is actually talking about, and I think we have one big job for this country: make sure they never get anywhere near government.
Several hon. Members rose—
Alan Brown
I agree, and I think that the Government are now looking at northern because it is yet another failing franchise—another sign that the current system is just not fit for purpose.
I go back to the problems with the southern franchise. The NAO report makes it clear that the Department for Transport’s responsibility was large, especially for access to the network and timetabling pressures. Such errors led to an additional £60 million being allocated from the Treasury, following a loss in revenue and other costs. Again, all that happened on this Transport Secretary’s watch.
Chris Grayling
I do not want to deflect attention in any way, but may I remind the hon. Gentleman that that franchise was not set up while I was Secretary of State?
Alan Brown
I am happy to accept that, but all the current problems are happening under the Secretary of State’s watch. He has refused to get involved in trying to resolve the disputes to move things forward. I accept the fact about when it was set up, but he could have been stronger in his leadership and his interventions instead of letting things rumble on.
Another issue that I have with the Secretary of State’s overall competence is his dogmatic refusal to devolve Network Rail to Scotland. The organisation is clearly too big, and it has a bad reputation for delays and overspend, so why would he not want to take the opportunity to devolve it, allowing the Scottish Government to take full responsibility? It has been estimated that a unified management structure could save up to £100 million a year, and that alone should appeal to a Tory Secretary of State, so I just do not understand his dogmatic refusal to engage.
Then there is his lack of engagement with the Scottish Government about the funding for control period 6 in Scotland. The allocation is way less than his regulator recommended for track maintenance and growth in Scotland’s railways. Why is he being so obstinate in refusing to meet the Scottish Government or to consider what might be a fair funding settlement? We also had the recent railcard fiasco. The autumn Budget included the announcement of a discounted railcard for 26 to 30-year-olds, except the Treasury did not put any money into the scheme. In answer to a written question, I was told that the rail industry would pay for it itself, but that was done without discussions with the industry so, lo and behold, the scheme is in chaos. Who would have thought it? Again, that happened under this Secretary of State’s watch.
The Transport Secretary’s slash-and-burn attitude to rail electrification projects and the short-sighted selection of hybrid engines will lead to continued diesel pollution. He has also so far refused to fund or consider meaningful upgrades to the west coast main line north of Crewe. The way that high-speed rail will be implemented means that journeys between Scotland and Crewe will take longer on high-speed trains than they take currently with Virgin Trains, so we need further investment north of Crewe.
I will deviate from rail slightly before I finish. The Transport Secretary’s incompetence is summed up by his proclamations that there will be no border checks post Brexit. The suggestion is that lorries will not be stopped—just like on the US-Canada border—but that just shows that he does not have a grasp of his brief. That is why I am more than happy to support the motion.
Points of Order
Lord Grayling Excerpts(6 years, 6 months ago)
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Mr Speaker
I am grateful to the hon. Gentleman. If the Secretary of State wishes to respond, he can.
The Secretary of State for Transport (Chris Grayling)
Further to that point of order, Mr Speaker. As I indicated to you earlier, my officials provided a copy to the hon. Member for Middlesbrough (Andy McDonald) so that he could prepare his response to my statement in good time—about 45 minutes, in fact, before the statement started. I judge that to be the best way of approaching what is a market-sensitive announcement, and it did not require me to do what is done, for example, on Budget day, when no advance notice is provided.
Mr Speaker
I think that this matter is best continued, if discussion on it is required, outside the Chamber. I have made my position clear on the subject of the statement being made today. I say this to the Secretary of State, who is not responsible for scheduling: there will be people who feel very unhappy that on a day when we have an Opposition day debate on Grenfell, which is heavily subscribed, a very substantial amount of time has been taken up, inevitably, by this statement. People will be very unhappy about that. I say to Members on the Treasury Bench that they ought to think about these matters extremely carefully from now on, because my priority is to defend the rights of the House of Commons, and I will do that against all comers. I have never been worried about the verdict of the Executive, and I am not going to start now.
East Coast Main Line
Lord Grayling Excerpts(6 years, 6 months ago)
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The Secretary of State for Transport (Chris Grayling)
Mr Speaker, I would like to make a statement about the future of the east coast main line. As was made clear in the point of order that we have just heard, it has been quite important to try today to handle the release of this information in as controlled a way as possible. We did, of course, approach the Opposition earlier this morning, and explained how we were going to communicate the information to them. My officials shared this statement with the Opposition parties shortly after 12 o’clock, at approximately the same time that Stagecoach was itself told about this—both would expect to be given warning of what is a significant and, for them, market and price sensitive announcement.
Let me set out what I have to say today. The House will recall that, back in November, I set out details of our rail strategy, and our plans to integrate the operation of track and trains. I also indicated that one of the key parts of that plan was to address what were then well-documented problems on the east coast main line by creating a new, integrated rail operation on that route.
In February, I gave the House an update on the financial problems on the east coast main line, and indicated that the current franchise would run out of money within months. This is not because the route is failing—it continues, and will continue, to generate substantial returns for the Government, and the most recent figures show passenger satisfaction at 92%. The route has its challenges, but it is not a failing railway. However, as I explained in February, Stagecoach and Virgin Trains got their bid wrong and they are now paying a price. They will have lost nearly £200 million meeting their contracted commitments. This means that taxpayers have not lost out because revenues are lower than predicted; only Virgin Trains East Coast and its parent companies have made losses at this time.
As the Brown review said in 2013, in an effective railway industry franchises can occasionally fail. But we do not, and cannot, expect companies to hold unlimited liabilities when they take on franchises—they would simply not bid for them if they had to. This means that franchises sometimes do fail, which is why a Conservative Government previously created the structures for the operator of last resort to ensure that we can always guarantee passenger services if franchises cannot continue.
In my statement in February, I said that I was considering two options to continue delivering passenger services in the run-up to the creation of the new east coast partnership. The first was to permit Stagecoach to continue to operate the railway on a not-for-profit basis until 2020, and to permit it to earn a performance-related payment at the end of its contract. The alternative was to implement an operator of last resort, bringing the route back into the temporary control of my Department, as provided for in legislation. Last autumn I established a team to prepare this as an alternative to use if required.
In the past two months, my Department has carried out a full analysis of these options, focusing on how each performs against the key principles that I set out in February: protecting passenger interests; ensuring value for money for taxpayers; and supporting investment and improvement in the railway. I am today publishing my Department’s assessment. To summarise, the analysis suggested that the case was very finely balanced, with some elements favouring a contract with the existing operator and others favouring the operator of last resort. When judged against my key principles, neither option was obviously superior. I have, however, taken another factor into account. I want to make the smoothest possible transition to the creation of the new east coast partnership. Given this finely balanced judgment, I have taken into account broader considerations and decided to use the current difficulties to drive forward sooner with our long-term plans for the east coast partnership.
I have decided to begin the transition process towards creating the new partnership now. This will be in the long-term interests of passengers, as every member of staff on the railway will be focused solely on delivering an excellent service for the future. I am therefore informing the House that I will terminate Virgin Trains East Coast’s contract on 24 June 2018. I plan to use a period of operator of last resort control to shape the new partnership. On the same day, we will start with the launch of the new, long-term brand for the east coast main line through the recreation of one of Britain’s iconic rail brands, the London and North Eastern Railway.
The team that have been working for me since last autumn to form the operator of last resort will take immediate control of passenger services, and will then begin the task of working with Network Rail to bring together the teams operating the track and trains on the LNER network. I am creating a new board, with an independent chair, to oversee the operation of the LNER route. The board will work with my Department to build the new partnership. It will have representatives of both the train operating team and Network Rail, as well as independent members, who importantly will ensure that the interests of other operators on the route are taken into account. I will appoint an interim chair shortly, and will then begin the recruitment process for a long-term appointment.
When the new LNER operation is fully formed, it will be a partnership between the public and private sectors. In all circumstances ownership of the infrastructure will remain in the public sector, but I believe that the railway is at its strongest when it is a genuine partnership between public and private. The final structure of the LNER will need to be shaped in conformity with the primary legislation that governs the industry, but my objective remains to move to a situation that leaves one single team operating the railway, with the simple goal of ensuring that they continue the work of the existing operators in improving services for passengers.
The rigorous process that we have followed underlines our commitment to ensuring that businesses operate under firm but fair rules. This Government are willing to take tough decisions when necessary to ensure that we build a stronger, fairer economy for all. I do not want these changes to cause passengers any anxiety at all. I want to reassure them that there will be no change to train services, the timetable will remain the same, tickets purchased for future travel—including season tickets—will continue to be valid, and customers will continue to be able to book their travel in the normal way. The ambitions that we have for services will also continue.
I want to reassure staff that the changes will not impact on their continued employment. It will be no different from a normal franchise change. Indeed, I want the LNER to have employees at its heart, so I am instructing the new board, working with my officials, to bring forward proposals that will enable employees to share directly in the success of the LNER as a pure train operator and subsequently as the new partnership. I am pleased to announce that Andy Street, the Mayor of the West Midlands and the former chief executive of John Lewis, has agreed to provide the team with informal advice about how best to achieve this.
I have already set out my plans to restructure the Thameslink, Southern and Great Northern franchise, following the successful delivery of the Thameslink programme. I have indicated that we will separate it into two or more franchises after the end of the current contract in 2021. We have not yet reached a decision on how to operate Great Northern services. However, I have had initial discussions with the Mayor of London about the possibility of transferring some of these to London Overground, as recommended in Chris Gibb’s report. Any change will be subject to consultation, but there is also an operational case for integrating Great Northern services from King’s Cross into the new LNER operation. I am asking my officials and the new LNER board to do feasibility work on this option.
I have also taken official advice about the future of the passports currently held by Virgin Holdings and Stagecoach, determining whether they are fit and proper to operate on our railways. A multidisciplinary panel has considered the situation and recommended that both companies continue as train operators. The panel advised that there is no suggestion of either malpractice or malicious intent in what has happened. Clearly we have to be vigilant about future financial commitments, but in my view those organisations have paid a high financial and reputational price for what has happened. This Government operate firm but fair rules in their dealing with business, and I have been advised that it would not be reasonable to remove or place conditions on the companies’ passports. However, this decision is provisional and will be subject to further review at the point at which the VTEC contract is terminated.
It is vital that we remember the benefits that the railway has seen since privatisation. Passenger numbers have doubled. New trains with new technology are being rolled out right across the network. Innovation has driven up passenger satisfaction. We are seeing a huge amount of private investment in the future of our railway, and the lessons of the financial failure of the east coast main line are already being, and must continue to be, learned. But our ambitions are bigger.
In the rail strategy that we published last year, we began to look at the future of the industry in order to make the private sector model fit for changing travel patterns and new technology, and to focus on a better quality passenger experience. These advances would not be possible if we returned to nationalisation and lost private sector innovation. This work will conclude in time for the spending review to ensure that we improve how we enhance the private sector drive to improve services for passengers in the coming years in a way that is fair for taxpayers and passengers.
Of course, the passengers on the east coast main line are the most important people in all this, and 92% of them say that they are happy with their travel experience. The steps I have put in place today will help to deliver even more for them, with the recreation of one of Britain’s most iconic rail brands; the start of the proper recreation of an integrated regional rail operation; and the arrival of the brand new intercity express trains later this year, the majority of which will be built at Hitachi’s plant in Newton Aycliffe in County Durham, continuing to support 700 jobs in the north-east. I believe that this strategy will set this railway on a path to a better future. I commend this statement to the House.
Andy McDonald (Middlesbrough) (Lab)
May I just comment on the point of order made by my right hon. Friend the Member for Newcastle upon Tyne East (Mr Brown)? I was given sight of this statement 30 minutes before I entered this House. I was not given an electronic copy, I was not allowed to take one away and, as I sit here right now, I have still not been provided with a copy of the statement. I consider this absolutely reprehensible. The Secretary of State does this every single time—relying on confidentiality and market sensitivity. Every single time he treats me with contempt, Her Majesty’s Opposition with contempt, and the House of Commons with contempt. It is about time he changed his ways. This is a shameful practice.
Today, the i newspaper reported that the millennial railcard announced in the 2017 Budget has been scrapped because the Treasury will not agree to fund it. In that case, why did the Chancellor announce it? This Government have nothing to offer that age group other than spin and broken promises.
In the past year, the Transport Secretary gifted Virgin and Stagecoach a £2 billion bail-out after they had failed on the east coast main line at the same time as awarding those same companies a lucrative contract extension on the west coast main line. Yet he has the audacity to come to the Dispatch Box and say that it is not reasonable to remove or place conditions on their passport. It is absolutely ludicrous. Three times in under a decade, private companies have failed on the east coast main line. Its only successful period was from 2009 to 2015 under public ownership, when £1 billion was returned to the Treasury. It was the best-performing operator on the network before being cynically re-privatised on the eve of the 2015 general election. The then Secretary of State for Transport said:
“I believe Stagecoach and Virgin will not only deliver for customers but also for the British taxpayer.”
What nonsense! Report after report by the Public Accounts Committee, which described the Government’s approach as “completely inadequate”, and by the Transport Committee detail the failure of the privatised franchising system on its own terms. The Government’s incompetence has been disastrous for passengers and led to misery for millions of people.
We have been here before many, many times, year after year. The Secretary of State and his predecessors have stood at the Dispatch Box and told the House that privatisation is being reformed. We have had reform, reform and reform. We have had bail-out after bail-out. Rail companies win; passengers and taxpayers lose. There is a definition of insanity: doing the same thing over and again and expecting different results. This is the situation we find ourselves in today. Franchising remains at the heart of the alleged partnership. No amount of tinkering can solve the failings of a broken privatised system where the public take the risk and the train companies take the profit, aided and abetted by the Transport Secretary.
Can we really believe anything that the right hon. Gentleman says? Rail investment is promised; rail investment is cancelled. He makes claims about technology despite his civil servants telling him that it does not exist. No one takes his announcements seriously. Every announcement is a smokescreen to divert attention from the failures of his rail franchising policy. The east coast main line is but one vulnerable rail franchise. What about Northern, TransPennine, Greater Anglia and South Western? Will there be bail-outs for operators on those lines who fail to meet their targets?
Let us be clear about the privatised public sector operator of last resort—how ridiculous is that?—on the east coast main line. These companies—multinational Canadian engineering company SNC-Lavalin, Arup, and big-four accountancy firm Ernst and Young—are not running the east coast main line for nothing. This is Conservative-style public ownership—more private profit. Only Labour’s version of public ownership will deliver what the railway needs.
There is a clear solution to the problems on the east coast main line. It was a successful public company between 2009 and 2014, thanks to the previous Labour Government. I am just sorry that the Secretary of State will not accept the stark staringly obvious answer: an integrated railway under public ownership, run for passengers, not for profit.
Chris Grayling
The first thing to say is that I could have done what has been done previously and made a stock market announcement at 7 am this morning, and not come to the House first. I actually chose on this occasion to come to the House first to provide the information, albeit price sensitively, in the best possible way. I am disappointed that the hon. Gentleman does not believe that that is a more appropriate way to handle such an issue than making a 7 am announcement to the stock market, as has been past practice.
The hon. Gentleman talks about nationalisation. Let us deal with this issue head on. Labour has spent the past few months desperately trying to take us back into the ambit of the European Union. Let me explain this to him very simply: his policy on rail nationalisation is illegal under European law. It is all well and good Labour Members arguing that we should stay in the single market and have a second referendum and all the rest of it, but his version of nationalisation is not legal under European law, so why would we take him seriously when he talks about this? I am interested in what works, and that is what we are doing with today’s announcement.
The hon. Gentleman harks back to the period of public operation of this railway. During that period, fewer staff were employed, it generated less money for the taxpayer, and passenger satisfaction was lower than it was subsequently. So it was not some great nirvana period. Yes, things were done in a way that moved things beyond the collapse of National Express in 2009, but the performance of the team currently running the railway has been good. It is not their fault that the parent company got its sums wrong. We should pay tribute to the team who work on that railway and say that it is not their fault that I have had to make today’s announcement.
The hon. Gentleman keeps going on about a £2 billion announcement. That is another example of why Labour does not understand any of this, because otherwise he would realise that no bail-out has taken place, any more than Labour bailed out National Express. This railway line is continuing and will continue to make a substantial contribution to the taxpayer. When he talks about a £2 billion bail-out, he does not understand the finances of the railway. It is not true today and it was not true when National Express collapsed. The reality is that this is the best way to take forward what has been a difficult situation on this railway on a path that I believe in and I think the public believe in: it is better to bring back the operation of track and train, and that is what we will do.
The hon. Gentleman raises the issue of the railcard having been scrapped. That would justify his not believing everything he reads in the papers.
Stephen Hammond (Wimbledon) (Con)
I welcome my right hon. Friend’s statement. As I understand it, with the formation of LNER there is no bail-out and nor is there any renationalisation, which will be widely welcomed. On the basis that taxpayer value has been protected, will he say what extra investment might be available to LNER, whether there will be opportunities for private sector investment and whether he will open up the line to open-access competition?
Chris Grayling
The latter point is really important. We want open access to continue. This line has some excellent open-access operators. The system we are putting in place will do nothing to preclude that from happening. I am very clear that that has to continue and that the interests of both the open-access operators and the freight companies needs to be protected as we take this forward. I assure my hon. Friend that that is what will happen.
I want to continue to see private investment in our railways. The Labour approach would mean that each year the railways were competing for public capital with schools, education and the rest. That is something that Labour Members do not quite understand. The railway gets more investment through a partnership between the public sector and the private sector than ever it would through their renationalisation policy. Going back to the days of decline and failure under British Rail is their way for the future. We just have to look at what is happening in France, where people are desperate to move away from that model because it is not working.
Alan Brown (Kilmarnock and Loudoun) (SNP)
Let us go back to 2012 and look at the failed west coast main line franchise. Back then, when Virgin was going to lose out, it was happy to go to court. It ran a public campaign—“Keep Virgin on the west coast”. Oh, how it squealed; we were to feel sorry for it. What happened? Yes, it got a direct award. Returning to the here and now, it gets to walk away from this franchise—no harm, no foul. We do not hear it squealing now. It is an absolutely sick joke. Virgin should not be allowed to bid for future franchises.
On this franchise, it is not just Virgin Trains East Coast that got its sums wrong. We keep hearing about how it got its sums wrong, but that means that the Department for Transport got its sums wrong when it assessed the tenders. Where is the due diligence? What is going to happen within the Department to make sure that it does not make the same mistakes in future? What about the other consortiums that lost out if VTEC got its sums wrong? Do they now have grounds to go to court having missed out because the Government awarded the franchise to a company and now just blithely say, “Oh, it got its sums wrong. Don’t worry about it—that’s what happens with some franchises. They get their sums wrong, and we move on and re-tender.”
Will Virgin and Stagecoach be allowed to bid for the new partnership? That really would be rubbing salt into the wounds of this process. Richard Branson has blamed Network Rail. He says, “It’s not our fault, guv—it’s Network Rail.” What is the truth in this? How much of this problem has been caused by Network Rail, and is that going to be sorted out? Will the Secretary of State please devolve Network Rail to Scotland, so that at least the Scottish Government can take care of these matters in Scotland? The current system cost an extra £60 million last year. He says that this is not a failing railway and that Virgin and Stagecoach are reliable. In fact, what we have is a failing Government.
Chris Grayling
If we want to find a failing Government, we just need to look north of the border. I do not plan to devolve responsibility for Network Rail to the Scottish Government because I do not believe the Scottish Government are capable of overseeing it properly. They are messing up education and health in Scotland. They should concentrate on doing the things they already have right before they take on any extra powers.
The hon. Gentleman talks about there being no harm to Virgin-Stagecoach. It has just lost 20% of its market capital. Most people running a business would say that that is a pretty big blow. It is not happy about that, and nor will any of its shareholders be. We have changed our approach since this franchise was let. There are new risk-sharing mechanisms in place. Most recently, we did not accept the highest bid for the last franchise we awarded, and we have to continue to work on this. I have asked my hon. Friend the Minister of State, who is the rail Minister, to work closely with colleagues in the Treasury to identify the best way to ensure that we have the right risk-sharing mechanisms for the future, so that we look after the interests of passengers and the taxpayer.
The hon. Gentleman asks about the new partnership and the bids. This is a completely different paradigm. This is not another franchise bid in two years. We are looking at shaping a different kind of railway, and we will set out plans for that to the House in due course.
Mr Simon Clarke (Middlesbrough South and East Cleveland) (Con)
Can my right hon. Friend confirm that all planned investment in the line will continue and that the extension of direct services to Middlesbrough will be unaffected?
Chris Grayling
I have every intention of continuing to meet the commitments to new services in the original VTEC document. The only complication that has arisen is around engineering works by Network Rail and when those take place, but there is no intention to withdraw any future service plans. Most will be able to start on time in 2019. A small number may be delayed beyond that, but that will be for reasons outside the control of the train operator.
Lilian Greenwood (Nottingham South) (Lab)
In November 2014, the then Secretary of State promised that the new franchise awarded to Virgin-Stagecoach would run for eight years and return £3.3 billion in premium payments to the taxpayer. He said:
“These figures are robust and have been subject to rigorous scrutiny, including by independent auditors.”—[Official Report, 27 November 2014; Vol. 588, c. 1080.]
The Secretary of State must take responsibility for this serious repeat failure. If Virgin-Stagecoach got its figures wrong, so did his Department, and he should apologise to passengers and taxpayers for that failure. The Transport Committee will be subjecting this failure to detailed scrutiny, but what does the decision today mean for other franchises that we know are struggling to meet their obligations?
Chris Grayling
There is no other franchise today in the same position. We are seeing some changed patterns of ridership on the railways. For example, people are choosing to travel to work three or four days a week and work from home one day a week, and we are doing careful work on what that means for the future. As I said, my hon. Friend the rail Minister is working on that very issue and any implications for the future of franchising. The reality, as I keep saying, is that this railway has continued to deliver a higher contribution to the taxpayer and a higher level of customer satisfaction than it did prior to 2014.
Mrs Anne-Marie Trevelyan (Berwick-upon-Tweed) (Con)
For the residents of Berwick-upon-Tweed, the east coast main line is critical infrastructure, until the Secretary of State manages to dual the rest of the A1 all the way through. Can he confirm that there will be no disruption and that my constituents will be able to continue using what has always been an excellent train line?
Chris Grayling
I can give that commitment. I hope that it will become an even more excellent train line, though passengers may be tempted away, as tomorrow I will do the formal opening of the last link of motorway-grade road between London and Newcastle—something that should have happened a long time ago but did not happen in the 13 years when the Labour party was in power. It is this Government who are bringing better transport services to the north-east.
Hilary Benn (Leeds Central) (Lab)
This is the third time that a private franchise on this line has failed. The Secretary of State just told the House that when it is fully formed, the new LNER operation will be a partnership between the public and private sectors. Can he clarify that, until that time, it will in effect be a publicly run service? If so, he could have made a considerably shorter statement if he had just got up and said, “For the time being, I am renationalising the east coast main line.”
Chris Grayling
It will be a publicly run service, and over the next two to three years, we will be developing the new model of the future. As I say, the operator of last resort is a publicly run service—so, yes, it will be, and we will be making the transition to the new arrangements over that period.
Philip Davies (Shipley) (Con)
Further to the Secretary of State’s answer to my hon. Friend the Member for Middlesbrough South and East Cleveland (Mr Clarke), he will know that extra services between London and Shipley and Bradford are scheduled to operate from next year onwards. What reassurance can he give that those extra services will operate? Can he ensure that Network Rail privatises the work required, so that those extra services are in operation on time, because they are very important to the local economy in the Bradford district?
Chris Grayling
My recollection is that the Bradford services and the ones going through my hon. Friend’s constituency are due to start next year, and I know of no reason why that should not happen.
Mr Ronnie Campbell (Blyth Valley) (Lab)
As has been said, three private companies have run the east coast main line, and they have all failed, except for the one that was disposed of by the last Government under the previous Transport Secretary. I wonder sometimes whether we should look at the current Secretary of State’s slush bucket and see how much Stagecoach put into it.
Chris Grayling
That suggestion is not worthy of an hon. Member of this House. The hon. Gentleman knows that decisions about procurement are taken predominantly by officials, and I regret the fact that he has made such an allegation.
Mr Speaker
Forgive me, but I do not know whether it was an allegation. It happened very quickly, and I did not deem it in any way to be disorderly. I will look at the record later, but the hon. Gentleman has made his point and the Secretary of State has responded to it.
Steve Double (St Austell and Newquay) (Con)
I suspect the Secretary of State is of a similar age to me and therefore remembers the last time our railways were nationalised. Is he therefore bemused by the somewhat romantic image that the Labour party portrays of what the railways were like? My recollection is that they were dirty, inefficient and nearly always late, not to mention the terrible sandwiches. They were a far cry from the modern and efficient railways we have today, thanks to private investment. Most of our challenges now are a result of rapid growth in passenger numbers.
Chris Grayling
We do not even have to look back to the days of British Rail. We just have to look across the channel to a railway that is heavily indebted, where there are threats of line closures, where the leadership of our friends in the French Government are saying that it simply is not acceptable to carry on the way they are and where they are looking to take their railway in the direction of ours and not the other way round.
Jenny Chapman (Darlington) (Lab)
Franchising on this line has failed repeatedly. The Secretary of State could make himself incredibly popular in my constituency, which is the birthplace of the railways, if he just stood up, looked behind him and said, “My name is Chris Grayling, and I have just nationalised a rail line.”
Chris Grayling
I have just explained why I do not think nationalisation of our railways is the long-term answer: we just have to look across the channel and see the chaos there to understand that a trip back to the days of British Rail is not right for the future of the travelling public in this country, however much Opposition Members might want it.
John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)
I have been working closely with the Rail Action Group, East of Scotland to reopen stations at Reston and East Linton. In the light of today’s announcement and given the impact that the operation of the east coast main line has on those stations, will the Secretary of State meet me and the hon. Member for East Lothian (Martin Whitfield) to discuss those projects and how the east coast main line might be able to progress them further?
Chris Grayling
I would be happy to do that. I want to see services on this route develop, and I want to see new destinations and new kinds of service. Of course, once High Speed 2 opens, there will be an opportunity for a whole raft of new services on this route, because of all the extra capacity that will be freed up.
Christine Jardine (Edinburgh West) (LD)
I wonder whether I could first address the point of order. Correct me if I am wrong, but I think the Secretary of State said that all Opposition parties had been informed of the contents of the statement before we came into the Chamber. That was not the case for my party. We had no notification at all, other than an email with a heading saying that there would be a statement. We did not receive an electronic notification until two minutes past 1 o’clock, when we were all already in the Chamber. Could the Secretary of State comment on that?
The Government cannot simply go on bailing out failing rail franchises. There will be a knock-on effect on other rail franchises, and what are other companies to do if there is a further reduction in economic growth and they are finding it difficult? Are the Government going to bail out every one of them, or will they take the opportunity to look at how public ownership works in this case and examine the future of the railways?
Chris Grayling
I will make two points. The custom and practice is to provide an advance copy of a statement to Her Majesty’s Opposition. It has also been the custom in recent years to provide one to the third party. Both of those were done this morning, so I have followed conventions as per normal.
The hon. Lady talks about bailing out a private franchise. I have not bailed out any private franchise; I have just taken away its contract.
Iain Stewart (Milton Keynes South) (Con)
Will my right hon. Friend confirm that nothing he has announced today will affect the investment in new rolling stock and the introduction of the new Azuma trains on the east coast main line? In the spirit of cross-party co-operation, may I give him a cheer for reintroducing the LNER brand back into our railways? LNER was one of the four great private railway companies that developed our railways in the last century.
Chris Grayling
I give my hon. Friend an assurance that the Azuma trains will be joining the network later this year. They will deliver a fantastic new service for passengers, and they will indeed be LNER Azuma trains instead.
Grahame Morris (Easington) (Lab)
The Secretary of State said that he was not aware of any problems with other franchises. Perhaps he was not in the House during Prime Minister’s questions, when problems with the Northern franchise were identified. Private companies are walking away from franchise bids in Wales and the east midlands. Is this not clear evidence that the rail franchising model is broken, and that the answer is a truly integrated railway under public ownership?
Chris Grayling
First, the number of firms asking for passports to apply for franchises is actually increasing, not decreasing. As I keep explaining to Opposition Members—they are causing as much trouble as they can for the Government over the European Union, instead of working together in the interests of this country—what they are proposing is illegal under European law.
Stephen Kerr (Stirling) (Con)
I commend my right hon. Friend for taking this tough decision and bringing forward his plan for a public-private partnership for the east coast main line. Will he confirm what this decision will mean for the customer experience before and after 24 June? What will be the travelling public’s experience as a result of this decision?
Chris Grayling
The travelling public are the most important people in all this. Tomorrow, and indeed on 25 June, they should notice no difference to the timetable or the tickets; they can buy tickets in advance. The difference is that from that point on they will notice a change to the trains, which will become LNER livery trains. Later this year, there will of course be brand-new LNER livery trains, providing a much better experience for the travelling public—and a more reliable experience at that.
Judith Cummins (Bradford South) (Lab)
The Secretary of State said in his statement that there is “no suggestion of either malpractice or malicious intent in what has happened.” Does he agree with me that what has happened smacks of a pattern of failure and incompetence, and that he, as the Secretary of State, should take responsibility?
Chris Grayling
Clearly the Government have to act in a situation like this, and we have done so: we have acted decisively. The reality is—I stand by what I said—that there is no malicious intent. A major corporation has made a major mistake, and it has paid a price equivalent to a fifth of its market capitalisation, which is a big cost for any business.
John Penrose (Weston-super-Mare) (Con)
I welcome the Secretary of State’s response to my hon. Friend the Member for Wimbledon (Stephen Hammond), who asked about open access. The Secretary of State was clear that open-access services will be maintained, but may I ask him to go further? In preparing for the end of the current deals in 2021, may I ask him, instead of going back to a failed nationalisation model or indeed of relying on the evident fragility of the franchising model, to consider greatly extending open-access rail to cover the entire line once the current deals are over?
Chris Grayling
I know my hon. Friend is a great believer in open access, and I think that this line proves that it can make a real difference. I give him an assurance that we will do all we can to continue to encourage open access to maximise the capacity of the railway network.
John Mann (Bassetlaw) (Lab)
The voters along the east coast main line in England were the strongest voters in the country for Brexit, and when they voted to leave the European Union, they, including my constituents, did not vote to give away the benefits that will come from it. They saw one of the big benefits of that vote as the ability to nationalise the rail industry. Why is this Secretary of State snubbing those Brexit voters and kicking them in the teeth?
Chris Grayling
I know we have travellers on this line who believe they are getting a better service than they have before, and I believe that most of them would agree with me that reuniting track and train is the best way of delivering performance. This is not actually about ownership. If a railway has operational challenges or is operating at capacity, it does not matter who owns or controls it, as the problem is still going to remain. If it were taken back into the public sector and then starved of capital, as would inevitably happen, we would end up with a railway that did less well for the future.
Henry Smith (Crawley) (Con)
I welcome the Secretary of State’s reconfirmation of the break-up of the Govia Thameslink Railway franchise in 2021, and also the £300 million of engineering investment that is going in, but will he please re-emphasise that the company must make sure that bus replacement services are not stranding passengers during periods of engineering work?
Chris Grayling
I am aware of the issue at Gatwick the weekend before last. My understanding is that the problem was relatively short lived, but lessons have to be learned from that incident, just as they particularly had to be learned from the previous one. The company needs to get this right. The engineering work has to be done, but we cannot leave people stranded in massive queues on a Sunday as a result.
Fiona Onasanya (Peterborough) (Lab)
Three times in under a decade private companies have failed the east coast main line. It was successfully managed by a public company between 2009 and 2015. Why will the Secretary of State not accept that obvious solution to the problems faced by the east coast main line?
Chris Grayling
I do not believe that that is the long-term answer. We are actually taking the line back into state control now. The whole point is that, during those years, the railway contributed less to the public purse, had lower levels of satisfaction and employed fewer people than it does today, and there must be a lesson in that as well.
Jack Brereton (Stoke-on-Trent South) (Con)
Does the Secretary of State agree that it is the involvement of private companies through the private-public partnerships managing our railways that has helped to foster more competitivity, particularly in relation to services and ticket prices?
Chris Grayling
That is right. I cannot understand why the Labour party is so fixated on recreating British Rail just at the time when our friends in France are going to step away from that model and actually move closer to where we are. That is Emmanuel Macron’s vision to create a better railway. The Labour party seems to want to go in exactly the opposite direction and to return to a situation that the French say is not working for them.
Martin Whitfield (East Lothian) (Lab)
The Secretary of State mentioned that independent members “will ensure the interests of other operators on the route are taken into account.” Will this include First ScotRail, which operates the local service—it is itself operating at capacity and facing its own crises—on the east coast main line in my constituency of East Lothian?
Chris Grayling
We have to make sure that the new organisation—I have talked about this with the rail regulator, which has been involved since the start of developing this concept—has a duty to make sure both that space is available for other operators and that, in relation to the support and the service provided, there is no discrimination against other operators, such as regarding whether the signals work and so forth. This has to be structured in a way that protects such operators, whether in the case of First ScotRail in the north, or other operators in the midlands and the south.
Huw Merriman (Bexhill and Battle) (Con)
I have served on the Transport Committee for the past few years, during which time we have examined the challenges that face train operators as a result of record investment in our Network Rail assets. Is it the Secretary of State’s view that the issue on the east coast main line is so acute that the only way to fix the Network Rail assets is to have it all as one operating entity?
Chris Grayling
On a rail network that is operating absolutely at capacity all round—when there are very few, if any, spare train cars; and when anything that goes wrong is hugely disruptive to the timetable—a joint operating team that is able to plan train services and engineering works as part of that same team, rather than in two different organisations, is a much better way to operate a railway. My vision for the east coast main line, and indeed for other parts of the rail network where we are taking steps down the same path, is to create such a joined-up approach of managing track and train together. In my view, that is the best way to make a congested railway work more effectively for passengers.
Caroline Flint (Don Valley) (Lab)
The Secretary of State says that Stagecoach and Virgin Trains got their bid wrong, which presumably means that they undercut their competitors. Should there not be a consequence, with Virgin and Stagecoach denied the right to bid for other franchises?
Chris Grayling
First, there is no legal basis for taking that step. Secondly, it is interesting that the Labour Members always demand that we stop international companies getting franchises in the UK. They seem to want to drive out of the industry a company that has made a huge mistake and paid a big price for it, but which none the less has been a successful transport operator in the UK for a long time. We should take sensible decisions in the interests of the country and of passengers. That is what I am doing.
Julian Sturdy (York Outer) (Con)
It is clear that there are unique infrastructure challenges on the east coast main line, many of which affect my constituents. What steps will the Secretary of State take to resolve those challenges, and can he assure me that the creation of the new partnership will solve them?
Chris Grayling
That is very much my aim. I will ask the new joined-up board to consider how we can bring digital technology to the signalling on the line. There are not enough train paths, and the way to sort that for the future is by moving to a digital railway. This is an area in which we can supplement public investment—we are putting in a record amount over the next five years—with private investment so that, for example, we unlock the potential of digital technology to create even more capacity on our railways.
Mary Creagh (Wakefield) (Lab)
I congratulate the Secretary of State on following the advice I have been giving him in this Chamber and partially implementing Labour’s 2015 transport manifesto, which I had a hand in writing, by bringing track and train closer together. I also congratulate him on his decision to bring the Great Northern line under the control of London’s Mayor, thereby recreating Network SouthEast from the days of British Rail. His decision to run the railway from 24 June shows that that is legal under European law. I urge him to go further and ensure that the private sector knows there is an operator of last resort ready to step in, so that we have a public railway operated by public servants and working in the public interest.
Chris Grayling
I think people already know, if they did not know before, that there is an operator of last resort. The legal position, as the hon. Lady will know, is that existing European law already provides for a separation of track and train. The new European rail package that comes into force in the autumn goes further by making it illegal to let any public contract without private sector competition and a private sector alternative. That will make the Labour party’s policies completely illegal.
What matters is what works for passengers. On bringing the operation of track and train back together, I think we both agree—I am grateful for the hon. Lady’s comments. We may disagree about overall ownership structures or the overall approach to privatisation or nationalisation, but a single team operating the two will take joined-up decisions in the interests of passengers. In my view, that is the right way forward.
Sir Desmond Swayne (New Forest West) (Con)
What was the line’s contribution to the taxpayer between 2009 and 2015, and what has it been subsequently?
Chris Grayling
The equivalent contribution since the current franchise started is roughly—if I remember correctly; this is just from memory—£200 million more for the taxpayer. It is certainly the case that the franchise has been contributing more to the taxpayer since Virgin Trains took over than was the case when it was under state control. The Labour party always seems conveniently to forget that, but it is the truth.
Paula Sherriff (Dewsbury) (Lab)
I receive daily communications from constituents who are frankly fed up with antiquated, unreliable and overcrowded trains, including, but not exclusively, on the east coast main line. The Secretary of State has long promised improvements in investment but has failed to deliver. When will he get a grip on rail in the north?
Chris Grayling
I keep saying to the hon. Lady that what she wants is a Government who are providing brand new trains. The first are already being introduced. On the trans-Pennine route, the completely refurbished new trains are already in operation. The first of the new-build trains are due to arrive within a matter of weeks. I expect the first Pacer trains to go to the scrapyard later this year. The new Hitachi-built trains arrive on the east coast main line later this year. The railways are about to go through the biggest transformation of their rolling stocks since the steam engine. I hope she and her constituents will welcome that.
Kevin Foster (Torbay) (Con)
I know that the Secretary of State shares my view that the idea that a rebranded British Rail is the great solution for all our transport problems is faintly ridiculous. What learning from the experience of dealing with this particular franchise is being taken to the Great Western Railway, which will have a franchise soon?
Chris Grayling
We have to ensure that the risk-sharing mechanisms are right, which is why I have tasked the rail Minister with looking in detail at franchise contracts. On Great Western, I want a very close relationship and deep alliance—if not one step further than that—between Network Rail and the train operator. We have to ensure for all future franchises that we do not get ourselves in a position in which the franchise can fail in this way.
Diana Johnson (Kingston upon Hull North) (Lab)
It looks to me like the Secretary of State’s golden ministerial touch has worked again to produce a catalogue of failure: his Department’s failure; the franchise agreement failing; incompetent train operators; and taxpayers and passengers losing out yet again. Does he plan to make an announcement about a £500 million bailout of Crossrail, which was reported in the newspapers at the weekend, again adding to the disparity in investment between north and south?
Chris Grayling
Opposition Members keep quoting what they have read in the papers. When there are things to tell the House, I will tell the House, as I always have, Mr Speaker. I counsel Members not to just pick up newspapers.
On the disparity in investment between north and south, the flagship project for the next five years is the £2.9 billion trans-Pennine upgrade, which is by a country mile the biggest rail investment project for the next five years in the Network Rail investment programme.
Maria Caulfield (Lewes) (Con)
The Secretary of State’s statement mentions the break-up in 2021of the Thameslink and Southern Rail franchises, but I urge him to break them up sooner rather than later. The new timetable changes affect passengers in my rural constituency, with stations at Berwick, Wivelsfield, Seaford, Lewes, Plumpton and Polegate all losing significant services. Will he bring forward the break-up of the franchise?
Chris Grayling
Let me touch briefly on the question of the new franchise. The big change to timetabling is not just in my hon. Friend’s area, but all around the country. It is being driven by Network Rail, which ultimately controls timetabling across the network to try to make a very complicated pattern of services fit together. After 20 May, there will be some fantastic enhancements to services around the country. Some tough decisions have been taken about levels of demand and ridership. If colleagues have individual concerns, the rail Minister and I will be very happy to sit down and talk about them. This is a massive and broad change that will deliver far more for passengers.
Lisa Nandy (Wigan) (Lab)
I welcome the Secretary of State’s decision, however reluctantly he reached it, but he seems to have no comprehension of the gravity of what is happening on our railways. Northern passengers were promised a better service when the franchise was awarded a couple of years ago, but that service is dirty, overcrowded and increasingly unreliable. That is having a major impact on our economy. Will he join me, the Mayor of Greater Manchester and cross-party MPs, and, in the public interest, step in to strip this arrogant, out-of-touch company of its franchise?
Chris Grayling
Let us be clear about two things. First, the Northern franchise is co-managed between Rail North—part of Transport for the North, on which the hon. Lady’s northern colleagues sit—and my Department. They are delivering a massive investment programme. I would add a cautionary note. Performance issues need to be addressed and we will address them, but it would be a huge mistake to disrupt the investment programme that, over the coming months, will start the transformation of all those dirty old trains that should have been replaced a decade ago but were not. The new trains are being built. The first ones are starting to arrive and she will see a transformation that is long overdue.
Graham P. Jones (Hyndburn) (Lab)
Is the Secretary of State attributing all the problems on the east coast main line over the last few years to the franchise holders and none of them to his Department and him?
Chris Grayling
I attribute the problems on that line to two things: first, an unrealistic bid that has failed; and secondly, old rolling stock that is being replaced and an infrastructure that needs an upgrade and is going to get it. That is what has caused the operational problems—notwithstanding that, passenger satisfaction on that railway line is 92%,which I think is pretty good.
Luke Pollard (Plymouth, Sutton and Devonport) (Lab/Co-op)
The cross-party Public Accounts Committee said last month that the Department for Transport’s forecasted earnings from the east coast franchise were wildly wrong. Given today’s announcement, how can we have faith in the Secretary of State’s Department’s handling of it, and will he now apologise for presiding over yet another privatisation disaster on our railways?
Chris Grayling
What I have done is take decisive action to deal with a problem that needs to be addressed to make sure that we protect passengers. That is what everybody would expect.
Clive Efford (Eltham) (Lab)
The Secretary of State is the one who wrote the letter saying that he would not hand over suburban services to a Labour Mayor of London, but in today’s statement he has had to eat his words about the overground services in north-east London. In south-east London, my constituents face a worse service, with less choice of destinations as a result of the new franchise, so will he reconsider the position with regard to the Southeastern franchise and allow the Mayor of London to take it over and give a better service to my constituents?
Chris Grayling
The issue remains twofold. The Mayor of London’s business plan for the Southeastern franchise provided virtually no new investment at all. There was a handful of extra services on the Nunhead line, and the rest of it was on a wing and a prayer. I think that the new franchise document specifying improvements for passengers will deliver, not just in London but across the whole of the Kent and south-eastern area, because this is not a London franchise.
Kelvin Hopkins (Luton North) (Ind)
May I remind the Secretary of State of a previous experience with public-private partnership on the railways—namely that in the London underground? It was forced on the Mayor of London and Transport for London, who resisted it very strongly. The scheme collapsed in disorder, very expensively. Tube Lines and Metronet—the two private companies involved—stuffed their pockets with money before it collapsed back into the public sector. Is that not going to happen again with this scheme?
Chris Grayling
I remind the hon. Gentleman that that problem happened when Labour was in power, which proves that they are not good at setting up contracting arrangements.
Kate Green (Stretford and Urmston) (Lab)
The Secretary of State knows, because I have raised it repeatedly, about the appalling service that my constituents are receiving from Northern Rail, with delays, cancellations, overcrowding, and trains running through stations without stopping when they should. Now the new timetable removes station stops all together. Will he finally take action to ensure that a compensation scheme that recognises the disruption that my constituents have suffered for months can actually be put in place to give them some measure of recompense for the disruption that they have suffered?
Chris Grayling
We continue to keep the matter under review. We are moving to Delay Repay 15 and looking at other ways of tightening performance on the railways, but the big difference to travellers in and around the Manchester area will come from the arrival of new trains and the completion of the works on the Bolton line, which have caused more disruption than I would wish. I am less than happy about the delays that have taken place and I am putting as much pressure on Network Rail as possible to get it sorted.
Albert Owen (Ynys Môn) (Lab)
The whole reason that we have this statement from the Secretary of State is that the current franchise arrangements are broken. I urge him, in the new franchise, to include not-for-profit and the part-nationalisation that he has announced today. That would avoid the embarrassment of a Secretary of State having to come to this House to announce that further down the line and costing taxpayers money.
Chris Grayling
As I keep saying in respect of what I will bring to the House in due course, as we make further progress towards the implementation of what was the east coast partnership and is now the London North Eastern Railway, this is a different paradigm, and it simply will not operate in the way the hon. Gentleman has discussed.
Gareth Thomas (Harrow West) (Lab/Co-op)
Given the well known but now even better publicised problems with the rail franchising model, might this not be the moment for the Secretary of State to review the Co-op party’s recent proposals for rail reform, including a series of new mutual, not-for-profit train operating companies that are able to operate in the private sector, but are publicly owned, and able to attract significant private investment?
Chris Grayling
As I said in my statement, one of the things that I am looking at on the east coast route is how we secure significant employee participation in its success. I will look carefully at what the hon. Gentleman suggests. I think that we need a different approach. That is why the LNER model that we will be developing over the coming years will be a revolution for the railways.
Thangam Debbonaire (Bristol West) (Lab)
The Secretary of State says that he wants to protect passenger interests and ensure value for money for taxpayers, but in Bristol, as across the country, fares have gone up three times faster than wages since 2010. He also says that he wants to support investment and improvement in the railway. We have some new stock, but we have had our electrification cancelled in Bristol, despite massive disruption for constituents in Lawrence Hill and Easton. When is he going to sort out our electrification and when will he accept that the favour that he has just done for the people and passengers on the east coast needs to be done for the passengers in Bristol, so that our rail service is no longer failing?
Chris Grayling
The hon. Lady is being a bit churlish. She is getting brand new trains for Bristol and the best ever train service to London. We are in the process of dualling the Filton Bank. We are working with the combined authority mayor for the Bristol area to develop the plans for the Bristol metro, MetroWest, which I regard as one of the most important projects for the country—[Interruption.] MetroWest is rail. It is going to be one of the most significant developments that Bristol has seen for a very long time, developing the kind of suburban rail network that it really needs.
Haulage Permits and Trailer Registration Bill [Lords]
Lord Grayling ExcerptsMonday 14th May 2018
(6 years, 6 months ago)
Commons ChamberRead Full debate Haulage Permits and Trailer Registration Act 2018 View all Haulage Permits and Trailer Registration Act 2018 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: HL Bill 84-R-I Marshalled list for Report (PDF, 80KB) - (13 Apr 2018)
The Secretary of State for Transport (Chris Grayling)
I beg to move, That the Bill be now read a Second time.
The United Kingdom’s road haulage sector plays a major role in keeping our economy on the move. Each year, UK-registered heavy goods vehicles carry around £30 billion in goods between the UK and the EU, and around 300,000 people are directly employed within the industry. I saw a snapshot of the UK logistics sector’s importance this morning when I visited and opened the new United Parcel Service sorting and delivery centre at the DP World London Gateway logistics site. It is a strong and positive new investment in the sector that is helping British businesses to become more efficient and is, crucially, a vote of confidence in our future as a trading nation. The Bill is important because it is about our future as a trading nation.
The Bill provides a framework that should reassure hauliers that the final Brexit deal agreed with the European Union will be able to be implemented smoothly and will support the continued movement of goods by truck between the UK and Europe. We are committed to maintaining the existing liberalised access for commercial haulage. It is in everyone’s interest that there should be a mutually beneficial road freight agreement with the EU that secures our objective of frictionless trade and is in the interest of both parties.
The Government are moving ahead with the negotiations with the EU, and I expect us to move towards a proper agreement later this year—I am very confident about that. However, it would be irresponsible of this Government not to plan for all eventualities. I stress again that it is in everyone’s interest to secure liberalised access, which is by far the most probable result of the negotiations, but this Bill is prudent planning for the future. It forms part of the Government’s broader EU exit legislation programme and, as set out in the other place, the haulage permits aspect of the Bill provides a framework for the UK to manage permits in all eventualities, including if they are needed as part of our agreement with the EU.
Mr Chris Leslie (Nottingham East) (Lab/Co-op)
The Secretary of State might be putting a gloss on what is potentially a catastrophic situation. I give him the opportunity, from the Dispatch Box, to give a categorical guarantee that, after exit day, the licences of 318,000 HGV drivers will still be valid to deliver goods across the European Union. Is that right?
Chris Grayling
I cannot give the hon. Gentleman final details of the negotiations at this stage, but let me tell him some straightforward facts: 80% of the trucks that come through the channel ports and the channel tunnel are carrying EU exports to the United Kingdom, so it is pretty evident that it is in everyone’s interest that we reach a sensible agreement for the future. This Bill ensures that we have the legal mechanisms in place to deliver the registration framework that is needed for all eventualities, which is prudent and sensible.
The hon. Gentleman asked me a straightforward question, and I say to him straightforwardly that 80% of those trucks are EU hauliers bringing goods to the UK. I struggle to imagine other EU countries not wanting that to continue.
Mr Leslie
I am sorry to interrupt the Secretary of State, but this is quite important. He acknowledges that I asked a straight question about the guarantee. Is it not the case that, even in that worst-case situation, some sort of bilateral agreement with other EU countries would be required and there is no guarantee that such an agreement will come forward? Is that not the truth?
Chris Grayling
I cannot guarantee that EU countries and their businesses will want to continue selling goods to UK consumers, but my best guess is that French farmers will still want to sell their produce through our supermarkets and that German car makers will still want to sell their cars in our car showrooms. No, I cannot guarantee that it will rain or be sunny tomorrow, nor can I guarantee that EU countries will want to continue selling their products to us, but do you know what, I think they probably will.
John Redwood (Wokingham) (Con)
I congratulate my right hon. Friend on introducing a timely and good Bill to deal with all eventualities, and on so politely answering idiotic interventions that are trying to create fear where there is no need for it because, of course, goods will move smoothly with or without a deal.
Chris Grayling
My right hon. Friend is right. The fact that this morning, just to the east of London, I visited a £120 million investment in the future of the United Kingdom as a trading nation by a major United States-based company says that I am not alone in believing that trade will continue and flourish in the future, because it will.
There are two parts to the Bill, the first of which is all about the permits. It enables us to introduce a scheme that simply allows trucks to cross borders in a variety of scenarios—this is, basically, like a truck having its own international driving licence. In many circumstances, through a variety of international agreements, that is a necessity in order to carry goods from one nation to another. We are simply making sure that we put in place the legal framework for the Government to establish a system for issuing permits if, after we have concluded the negotiations, it proves necessary to do so. We have designed the legislation to be flexible in response to different circumstances. We do not want to place any undue regulatory or financial requirements on the industry.
Permits are a feature of almost all international road freight agreements outside free-trade areas. The UK already has several permit-based agreements with non-EU countries, including Belarus, Georgia, Kazakhstan, Morocco, Russia, Tunisia and Ukraine. The UK also has liberal, non-permit agreements with Albania and Turkey. The Bill will also cover non-EU agreements relating to permits, which means that there will be one simple, straightforward administration system that is designed to be as easy as possible for haulage firms to use.
Sammy Wilson (East Antrim) (DUP)
I, too, welcome the Bill. The Government are right to make it clear that in the event of no deal we will still have made preparations. The Bill makes a distinction between international permits with other EU countries, and permits and agreements with the Irish Republic. Why is such a distinction made?
Chris Grayling
We worked on this carefully. The important thing to say is that this is not in any way related to broader discussions about border matters. We are aware that some hauliers travel from Belfast to Dublin to Holyhead to deliver their goods within the UK—we are talking about a UK business delivering its produce within the UK—so this provision is simply designed to ensure that that will not be impeded in any way by the regulatory system. I will say a bit more about that later in my remarks, but we want to ensure that nothing can undermine the integrity of the UK and people who travel from point A to point B within it. That is very important to me.
The final details of the scheme will, of course, depend on the agreements that we reach, and the Bill allows for that. It creates flexibility and allows us to make regulations on the allocation of permits to best meet the needs of the economy. Guidance on the allocation process will be issued to hauliers.
This aspect of the Bill also allows the Government to charge fees in relation to applications for permits and the grant of permits. I stress that our aim is purely to set those fees on a cost-recovery basis so that we minimise the impact on hauliers; this is not designed to be a revenue-raising mechanism. The system is simply designed to cover its own costs, and the amounts involved will be relatively small for anyone seeking a permit. The fees will recover only the day-to-day cost of administering the scheme. The set-up costs of the scheme are being funded as part of a £75.8 million grant from the Treasury to the Department for Transport as part of our preparations for all the different Brexit scenarios.
The Bill provides for the first set of regulations made under clauses 1 and 2 to be subject to the affirmative procedure, which means that the House will be able to scrutinise the new permitting system fully and properly. The first regulations will set out the overarching framework that will be used for the provision of permits under any future agreements. As I have outlined, we are confident that we can maintain our existing liberalised access with the EU, but the Bill will help to cater for any possible future permit arrangement with the EU.
On timing, we plan to have the system for a permit scheme ready by the end of the year. It is important that we make sure that we are prepared for all eventualities. Any applications for permits after the relevant regulations are in force will be dealt with under this system. The first regulations made under clauses 1 and 2 will cover the permits required under existing international agreements, including provisions relating to Armenia and Ukraine. If we then agree a permit-based arrangement with the EU, we will make further changes to the regulations to cover the agreement reached. In the unlikely scenario that we end up with a restricted number of permits to the EU as part of a future relationship, we have committed to providing a report to Parliament. That report must assess the effects of such restrictions on the UK haulage industry during that year. That assessment is, of course, vital, but I reiterate that this is about a flow that is more inward than outward, both in goods terms and in haulage terms, so I remain confident that we will reach a sensible agreement for the future. The permit scheme is necessary to make sure that trucks have their equivalent of the international driving licence to cross borders. I will not allow us to get into a position in which the industry does not have the administrative basis to take its business forward in all eventualities.
Before I move on to part 2 of the Bill, let me touch briefly on the 1968 Vienna convention on road traffic, which the UK signed 50 years ago and which the Government have recently ratified. The convention will come into force here before 29 March 2019. It was introduced by the United Nations to enable international road travel and to increase safety by establishing common rules for roads around the world. It builds on the earlier 1949 Geneva convention on road traffic and, indeed, the 1926 Paris convention, which was the first in this policy area and which the UK has already ratified. Why does it matter? Because we need to make sure not only that trucks can come across borders, but that we are able to line up with the rules in other countries, such as Germany, on trailer registration.
The second part of the Bill gives the Government powers to establish a trailer registration scheme to meet the standards in the 1968 Vienna convention. Many EU countries have similar schemes. It will mean that UK operators will be able to register trailers before entering countries that require trailer registration for travel on their roads. By trailers, I mean not the trailer on the back of a car that carries a tent, but full HGV trailers that cross borders to carry goods from point A to point B. The Bill will allow us to set the scope of such a scheme’s coverage.
The detail will be set out in regulations, but our intention is to require only users travelling abroad to register their trailers. It is not UK-only, but purely about those travelling internationally. Only commercial trailers weighing more than 750 kg and all trailers weighing more than 3.5 tonnes will need to be registered. As was clearly set out in the other House, the duty to register will apply almost exclusively to international hauliers. Virtually all private-use trailers, such as caravans and horse trailers, will not fall within the scope of mandatory registration, because it is rare that trailers of that kind weigh more than 3.5 tonnes.
We will consult on the scope of the trailer registration scheme over the next few months, and we will try to make sure that we are in good shape later this year to put in place the right scheme, depending on the nature of our agreements and what is required to ensure the smooth flow of trade across borders. We plan to recover the costs of running the scheme by charging fees, which we expect to be lower than those currently set out for the registration of motor vehicles. It is of course important that the new arrangements are complied with; if they are not, we will apply existing penalties to those who transgress.
Mr Robert Goodwill (Scarborough and Whitby) (Con)
Many hauliers hire trailers for specific uses. If trailers are used predominantly in the UK, they obviously will not be registered. What sort of timescale does the Secretary of State think would be reasonable for registering a trailer before it embarks on an international journey?
Chris Grayling
In all this, we will want the process to be as rapid as possible. There will inevitably be a surge at the start when hauliers look to register trailers that will be used internationally, but my hope is that once that initial surge is over, it will be possible to carry out the registration very quickly when there is a change of circumstance. We do not expect to have a system that is so expensive that it deters somebody who wants to register a trailer in case it is used internationally. We want to ensure that there is only a small cost to businesses. Many people will want to register their trailers in case what my right hon. Friend highlights happens.
We listened carefully to the debate in the other place and we are working on a report on trailer safety, which is a policy area in which proper analysis will be beneficial and will help safety on our roads. Off the back of the report, we will be able to offer a clear and comprehensive analysis of the complex issue of trailer safety and towing-related accidents. That was a constructive element that came out of the debate in the other place, and we will certainly engage with it.
On the question of the island of Ireland, the Bill covers the whole United Kingdom, other than two provisions that amend legislation in Great Britain and Northern Ireland respectively. Road haulage policy and trailer registration are devolved in Northern Ireland, but not in Scotland and Wales. We have been working with all the devolved Administrations as the Bill has developed. With regard to the Republic of Ireland and Northern Ireland, the Bill supports the commitments made in the December 2017 joint report to avoid a hard land border. This is an enabling Bill, and the Government will preserve the constitutional and economic integrity of the United Kingdom.
The Government are committed to ensuring that trade and everyday movements over the land border continue as they do now. The Bill does not create a permit regime in relation to the Republic of Ireland and Northern Ireland, nor does it create a hard border between them. It means that trailers travelling only between the UK and Ireland will not need to be registered. It also avoids the situation that I described earlier in which someone who chooses to go via Dublin to come over to the UK finds themselves needing a permit even if they are moving purely within the United Kingdom. I can confirm that the Bill will not impact on border arrangements and that there will not be, as a result, any new transport-related checks at our borders.
Sammy Wilson
Will the Secretary of State clarify whether there will have to be a separate agreement between the UK Government and the Irish Government covering people who are taking lorries across the border, whether through Ireland to the rest of GB, or simply carrying loads from Northern Ireland into the Irish Republic?
Chris Grayling
The right hon. Gentleman will understand that I cannot speak for the Irish Government. We are putting in place a mechanism that ensures that there is no issue on our part. The Irish Government, like any other Government, are of course perfectly able to put barriers in the way of trade, but we will not do that. We will not create a regime that affects those travelling into the Republic of Ireland or those travelling through the Republic of Ireland into the United Kingdom. I cannot give guarantees on behalf of the Republic of Ireland, but I cannot for a moment believe that people there will want to put in place administrative systems that we do not put in place.
Alan Brown (Kilmarnock and Loudoun) (SNP)
I understand that the Secretary of State cannot speak for the Irish Government, but can he tell us what discussions he has had with the Irish Government about this, and therefore give us an indication of what the position might be?
Chris Grayling
The hon. Gentleman will know that the Irish Government are part of the European Union negotiations. We continue to discuss this and other transport issues as part of those negotiations, and I am entirely confident that we will reach a sensible place at their conclusion.
Let me sum up. As I have outlined, we are committed to ensuring that the road haulage industry can continue to prosper as we leave the European Union. As part of our programme of EU exit legislation, this Bill prepares us for a range of scenarios. It will ensure that the UK can fulfil its international obligations and will be ready when we leave the EU.
The Government have been supported by the industry in bringing forward these sensible measures, and we have talked extensively with it over the past few months. I believe that this represents prudent planning for different eventualities. I personally want to lead a Department that is prepared for all those eventualities and that can deal with whatever circumstance lies ahead, notwithstanding my view that we will reach a sensible partnership agreement for the future this autumn that will enable us to remain good friends and neighbours of the European Union, and that will allow the trade between us to carry on flowing as it does today. I commend the Bill to the House.
Chris Grayling
May I ask the hon. Gentleman a simple question? If business shares the pessimism that he is laying before the House, can he explain the string of positive announcements of investment in the United Kingdom that we have seen in the past few months by Vauxhall, Toyota and others? If things are so bleak, why are they choosing to make substantial investments in their future in the United Kingdom?
Andy McDonald
If the Secretary of State had looked at the papers over the weekend, he would have seen exactly why. A lot of people are making their plans to get out of the UK if necessary. That is exactly what has happened. He is playing with fire on this, and he really should wake up and smell the coffee.
The Government have done little to help the road haulage industry. They have made a complete and utter dog’s breakfast of contingency planning for the M20 motorway. A lorry park off the motorway has been desperately needed to help alleviate problems during Operation Stack, and it is all the more needed ahead of Brexit next March. Yet the Department for Transport failed properly to undertake the critically important environmental risk assessment before the planning process for the £250 million project and had to scrap it last September. This incompetence will have disastrous consequences. If this Government cannot successfully plan how to build a lorry park in Kent, how do they expect anyone to believe that they are capable of introducing an alternative haulage permit scheme?
Alan Brown (Kilmarnock and Loudoun) (SNP)
It is a pleasure to follow the right hon. Member for Scarborough and Whitby (Mr Goodwill), who must be one of the very few of us in this place to have a class 1 licence.
I think I will continue the theme of Opposition Members expressing their genuine concerns about what is happening and about how we go forward, while Conservative Members just continue to tell us, “Everything will be all right on the night. Why should we worry? Just believe us. It will all be okay.” The Government’s confidence is indicated by the fact that a Parliamentary Private Secretary has been going round the Government Benches giving out a crib sheet and lobbying for support. I think that tells us how confident the Government really feel.
I understand the need for the Bill, which is a back-up in case there is no deal. For that reason, I certainly would not vote against it, but I hope that the UK Government are doing their best to ensure that part 1 is not required and that the existing streamlined operations we enjoy under the Community licence scheme remain in place. However, we have to look at the current reality. We have a Brexit Cabinet that cannot agree a customs arrangement. The Tories are determined to pull out of the customs union and the single market. They are absolutely all over the place, and the clock is ticking away, so the prospect of a seamless transition becomes more and more unlikely.
In many ways, the Bill is symptomatic of the Government and their approach to Brexit. It is mainly superficial. There is a statement of intent, but we do not know the detail behind the Bill. We do not know what the permit system will look like or how it will operate. We do not know what fees will be applied. We do not even know whether limits will be applied to the number of permits. Like the Brexit process in general, the Bill is just the equivalent of talk but no action.
There is a further irony. The Bill is another example of primary legislation formulated in the other place. When it suits the UK Government they tell us that the House of Lords is only a revising chamber and that it should not get in the way of the business of the Government, yet if it is willing to do the Government’s bidding, we are supposed to laud its expertise. However, when it applies its expertise and says there is a need for a customs union, a vote to stay in the single market and a meaningful parliamentary vote in this place, somehow we have to ignore that expertise and wisdom. That shows the hypocrisy of Government Members when it comes to the House of Lords.
Another aspect of the Bill is that it is a part of the no deal preparations. The Brexiteer argument is that preparing for no deal will show the EU we are ready to walk away, thus strengthening our negotiating position. However, I am pretty sure that the Bill is not going to have Michel Barnier quaking in his boots. This is the first Bill going through Parliament in preparation for no deal. I suggest there is a long way to go to strengthen the Government’s hand. We are only a couple of months away from summer recess and a whole load of other legislation will be required for the Government to be in a competent place in terms of no deal arrangements. There is no way that the Government are strengthening their hand. If anybody thinks that we are in a stronger negotiating position, they are kidding themselves.
The Government have not even published their transport priorities in a single policy or place, so we do not really know their overall hoped for direction of travel. We know in theory that they want frictionless trade. They want extensive free trade agreements without any meaningful show of what that means in reality and how it would be implemented—that is a key issue.
On haulage, we know that the supposed preference is for things to remain much as they are under the Community licence arrangements, but where are we on those negotiations? If agreement is reached for arrangements to continue as is, or if a reciprocal licence arrangement is agreed, that means few extra checks will be required. There is still, however, the fundamental issue of the customs and border arrangements, which is far more relevant to hauliers and businesses reliant on the import and export of fresh goods.
What will be the timescale for a new IT system? Has any work actually started on it? How much of the £75.8 million allocation for transport Brexit preparation has been spent so far and what has it been spent on? What is the planned programme of work for the fund for the rest of the financial year? Is the renting of Manston airfield as an emergency lorry park part of the Brexit preparations and expenditure? As the shadow Minister said, they cannot even get their plans for a car park correctly in place. That is £13 million down the drain.
Chris Grayling
It may be helpful to the House if I say that the preparations for any disruption, not necessarily Brexit-related, of the Channel ports are well under way. Work on the M20 will begin in a matter of weeks, either late this month or early next month, to ensure that we have greater capability than we did in 2015 to store more lorries. We are not relying on Manston airport. It remains available to us in the short term, but it is not included in our long-term plans.
Alan Brown
The Transport Secretary says that the work is going to start shortly. Can he give me a timescale for the completion of the lorry park?
Chris Grayling
I will go into detail another time, but we are putting in place plans that will enable us to store at least as many lorries as we did at the worst of the situation in 2015 without creating a situation where the motorway cannot flow in both directions. Those plans are well advanced and we will have them in place before next March.
Alan Brown
I remain to be convinced. That seems to be another example of, “Believe me, it will be okay. We’re dealing with it, just trust me.”
Points of Order
Lord Grayling Excerpts(6 years, 7 months ago)
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Mr Speaker
The Secretary of State is now poised, like a panther ready to pounce, so the hon. Gentleman may have secured, if not pre-empted, at any rate, early gratification, in that the Secretary of State is marching towards the Dispatch Box.
The Secretary of State for Transport (Chris Grayling)
Further to that point of order, Mr Speaker. It is self-evident that last January, when we discussed these issues, the trains that will run on the midland main line had not been ordered and therefore did not exist. As things stand today—as things stood last summer and last April—there are already 120 mph-plus bi-mode trains operating on the Great Western main line. I have manufacturers beating a path to my door to build the trains for the midland main line; of course they are going to run.
Oral Answers to Questions
Lord Grayling Excerpts(6 years, 7 months ago)
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Michael Fabricant (Lichfield) (Con)
The Secretary of State for Transport (Chris Grayling)
As my hon. Friend knows, once High Speed 2 comes into operation it will move the express trains off the existing west coast main line and on to the new route. That will provide a great opportunity to improve services to intermediate stops such as Lichfield that do not have a good enough service at the moment.
Michael Fabricant
I am slightly reassured by that answer. The Secretary of State talks about moving express trains off the west coast main line, but of course we currently have a very good Pendolino service and the slower West Midlands trains. Several hundred of my constituents commute to London every single day. What assurance can the Secretary of State give them that the Pendolino service—a fast, express service—will continue, and indeed that the Pendolinos will be replaced with equally fast trains when they come to the end of their life cycle?
Chris Grayling
The Pendolinos have many years to go, and I have no doubt that they will be replaced by a high-quality fast train in the future. My hon. Friend will have stood on the platform at Lichfield station and seen trains to Liverpool, Manchester and Scotland zooming past at high speed. The new plans will provide an opportunity for more trains to stop at Lichfield.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
The Secretary of State knows well that I believe that HS2 is a vanity project that will never come to fruition. He knows that my constituents in the booming town of Huddersfield, which he visited recently, have access to the west coast line and the east coast line, but most of all they want a good trans-Pennine connection everywhere.
Chris Grayling
Absolutely, which is why I have already announced that the £2.9 billion upgrade of the trans-Pennine line will begin this time next year, as the start of a transformation that is vital to the north. In the coming months we will also see the arrival of the first of a complete new set of trains across the north of England that will transform passengers’ experience.
Alan Brown (Kilmarnock and Loudoun) (SNP)
Previously I have raised concerns that, under the Department’s current proposals, high-speed classic-compatible trains will run slower north of Crewe than existing trains on the west coast main line just now. The Secretary of State said that we need to address that as we go through the 2020s. That is clearly not good enough. We need certainty now. If he will not commit to upgrading the west coast main line north of Crewe, will he look into procuring trains that can tilt and travel on the high-speed network?
Chris Grayling
The new classic-compatible trains and the arrival of HS2 up to the north-west of England will of course mean more speedy journey times to Scotland. I know the hon. Gentleman’s party’s view. We want to see further improvements through the 2020s to the west coast main line north of Crewe to ensure that we improve journey times. We want the best possible journey times across the whole network, and will continue to work for that.
Toby Perkins (Chesterfield) (Lab)
Adam Afriyie (Windsor) (Con)
The Secretary of State for Transport (Chris Grayling)
The Government set noise controls at Heathrow airport, including total noise limits and aircraft movement limits for night flights. These controls, in conjunction with stricter aircraft noise standards negotiated by the UK at the international level, have resulted in a long-term reduction in the number of people affected by aircraft noise near the airport.
Ruth Cadbury
A freedom of information request revealed Government analysis that expects nearly a million households to face increased daytime noise if Heathrow is allowed to build a third runway. Will the Secretary of State visit my constituents, tens of thousands of whom will face significantly worse noise if the third runway goes ahead, and for whom no amount of noise insulation will be acceptable?
Chris Grayling
I have been in the hon. Lady’s constituency on many occasions and heard the noise there, and I am very pleased that, over the last 20 years, we have seen a steady reduction in aircraft noise. That is expected to continue as a new generation of aircraft appear in greater numbers. The projections show that, as we enter the 2030s with that change in aircraft fleet, we do not expect an overall noise impact on people around the airport. Nor do we expect an increase in the number of people within the 54 dB bracket, precisely because a new generation of lower-noise aircraft—they will also be lower-emission and lower-fuel consuming aircraft—will mean a quieter airport generally.
Adam Afriyie
The aviation national policy statement states that about 93,000 more people will be significantly affected by noise if the third runway goes ahead, yet Civil Aviation Authority figures indicate that more than 2 million people will be affected. Will the Government acknowledge that vast disparity in numbers, and will they update the aviation national policy statement?
Chris Grayling
Before the aviation national policy statement is brought to the House, it will be updated off the back of work done by the Transport Committee and the public consultations that have taken place—it will be a refreshed document when it comes before the House. The impact of noise on residents around Heathrow depends on an assessment of the rate of arrival of that new generation of aircraft. As we get into the 2030s, we expect no overall increase in the number of people in the 54 dB noise barrier because of the arrival of those new aircraft. There may be a short period in the mid-2020s when there is a small increase, depending on the airport’s rate of growth and the development of the aircraft fleet, but any such increase will be a short-term one.
Nick Smith (Blaenau Gwent) (Lab)
When will we get a new train service between Reading and Heathrow? That will help to reduce noise and get Welsh travellers to the airport.
Chris Grayling
Western rail access to Heathrow is part of our plans for control period 6, and I expect construction to start between 2019 and 2024. The hon. Gentleman will be aware that I recently invited the private sector to bring forward proposals for southern access as well, as part of a land and surface access package that will bring substantial increases to the capacity of rail links to Heathrow airport.
Jeremy Quin (Horsham) (Con)
These problems are not unique to Heathrow; they also affect areas around Gatwick, which has a lower level of ambient noise. Will the Secretary of State assure the House that any further lessons learned about how we reduce noise at Heathrow can be applied more generally?
Chris Grayling
They can be, and the point I did not make in my response to the hon. Member for Brentford and Isleworth (Ruth Cadbury) and my hon. Friend the Member for Windsor (Adam Afriyie) is that we are in the process of modernising the use of airspace in this country. I hope and believe that that will allow us to manage much more carefully respite for airports, and flight paths into and out of airports, and to do the best we can to minimise the impact of aviation on communities. There can be no situation where there is no impact, but I want us to do our best to ensure that that impact is as carefully managed and minimised as possible.
Wera Hobhouse (Bath) (LD)
Peter Grant (Glenrothes) (SNP)
The Secretary of State for Transport (Chris Grayling)
I meet my right hon. Friends and Cabinet colleagues on a regular basis to discuss the UK’s exit from the EU. Ministers and officials across Departments are working closely to consider carefully the implications for the aviation sector after we leave the EU.
Carol Monaghan
Last month we heard that the first formal talks on a post-Brexit open skies deal with the US were cut short after US negotiators offered an inferior deal to the one we currently enjoy, so when does the Secretary of State plan to return to the negotiating table, and will he do so with a sense of reality about the impact that hard Brexit is having on the aviation industry?
Chris Grayling
The hon. Lady should not believe everything she reads in the papers. The discussions taking place between my Department and our counterparts in the United States have been cordial and have been going well. There are no issues that would act as an impediment towards a sensible post-Brexit agreement between the two countries.
Stuart C. McDonald
A key requirement in any deal with the US may well be that UK airlines are required to be UK majority owned, yet very few would be able to meet that standard. What are the realistic chances of the US ditching that long-standing policy for the sake of the UK?
Chris Grayling
Clearly, airline ownership is more complex as part of the European Union than it was in the pre-EU days, but nobody is seriously suggesting that we are not going to continue with the same kind of transatlantic partnerships we have at the moment. British Airways and American Airlines, for example, operate in lockstep with each other. We will progress in due time towards a sensible agreement that continues the extremely prosperous, important and successful transatlantic aviation routes.
Peter Grant
We have less than a year to sort this out. Already people who are attempting to book foreign holidays for next Easter, less than a year from now, are finding that they are having to accept a clause in the contract that waives any right to compensation if their holiday is cancelled because of problems with the lack of an open skies agreement. Is the Secretary of State trying to tell us that those reports from reputable travel agents are myths that we should not believe? Is it not a fact that the travel industry and the aviation industry understand how serious this problem is becoming and the Government, in their complacency, do not?
Chris Grayling
That is not accurate at all, as the hon. Gentleman will find if he listens to the chief executives of the International Airlines Group, EasyJet or a number of other airlines. I have had no airline, bar one, come to my desk and suggest that they are concerned about the situation. I think we know which the one is, and no other airline believes there is any likelihood of any impediment to aviation next year. Indeed, there will not be. Can you imagine, Mr Speaker, a situation where the Spanish, Italian, Portuguese or Greek Governments did not want holidaymakers to arrive from the United Kingdom in 2019? I have spoken to my counterparts and they snort with derision at the idea that the planes will not fly.
Thangam Debbonaire (Bristol West) (Lab)
Snorting with derision may be the response the Secretary of State has had, but people in my constituency who work in the aviation industry are really concerned about how we are going to function outwith the European Aviation Safety Agency. Will he please tell us a bit more about how we are going to function outwith the EASA?
Chris Grayling
The Civil Aviation Authority is making all preparations necessary if it needs to return to operating as a body in the form that it used to be in. However, it is the Government’s policy and our intent to remain part of EASA. There is no reason not to: countries inside and outside the European Union are part of it, and we supply a substantial proportion of its expertise. The leadership of EASA wants us to stay, and I am confident that, as we get through the process of negotiation, that is where we will end up.
Kelvin Hopkins (Luton North) (Ind)
Jonathan Edwards (Carmarthen East and Dinefwr) (PC)
The Secretary of State for Transport (Chris Grayling)
The Prime Minister and I discussed Cardiff to Swansea at the time, and reached the view that spending hundreds of millions of pounds of taxpayers’ money and causing massive disruption to passengers to enable the same trains to travel on the same route at the same speed to the same timetable as they do today was not actually a sensible thing to do.
Jonathan Edwards
We know from press reports issued during the Easter break that the Prime Minister personally made the decision to renege on an election promise to electrify the main line to Swansea on the basis of cost. Is not the reality that the British Government do not consider the west of my country worthy of investment?
Chris Grayling
We made the decisions about electrification on the midland main line and the line between Cardiff and Swansea on the simple basis that spending hundreds of millions or billions of pounds to achieve the same journey times in the same trains was not sensible. The trains on the Great Western route are already in operation, delivering services to people in Swansea, for whom it is a great and important investment. Trains on the midland main line require the addition of one engine to provide a little bit of extra acceleration, but they already exist, and will be great for that line as well. So let us hear none of this nonsense from Opposition Members. In fact, during the years when they were in government, this was their policy: they believed that what was important was capacity and delivery, not electrification, and I agreed with them.
Rachael Maskell (York Central) (Lab/Co-op)
Facts matter. In a written statement on 20 July last year, the Secretary of State said that with bi-mode trains it would be possible to
“achieve the same significant improvements to journeys”.—[Official Report, 20 July 2017; Vol. 627, c. 72WS.]
However, as we have heard from my hon. Friends the Members for Sheffield South East (Mr Betts) and for Sheffield Central (Paul Blomfield), it is clear from National Audit Office reports that that statement cannot be correct.
Rachael Maskell
No, this was about the Cardiff to Swansea route as well.
Why did the Secretary of State give those assurances? Now that he has come to the Dispatch Box, will he apologise?
Chris Grayling
Let us be clear. I stand by every word that I said then. We will deliver smart new trains and improved journey times for passengers on the midland main line, as we are currently doing and will continue to do on the Great Western main line, and as we will do on the east coast main line and the transpennine route. [Interruption.] As I have said, we will also deliver new trains providing better services for passengers on the midland main line. The only difference made by £1 billion of spending would be a one-minute saving in the journey time, and that is not good value for taxpayers’ money.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
On a point of order, Mr Speaker. Given that this is such an important matter, surely we should have a point of order on it.
Maggie Throup (Erewash) (Con)
The Secretary of State for Transport (Chris Grayling)
We spend a lot of time talking about planes, trains and automobiles in these sessions, but we do not spend much time talking about ships. I want to pay tribute to all those involved in the talks that took place in London last week, particularly those from my Department. They paved the way for an historic agreement in the maritime sector on cutting carbon emissions from shipping. It is a really important step forward and I commend all those involved.
Maggie Throup
Will the Secretary of State visit Long Eaton as a matter of urgency to visit those property owners directly affected by HS2, some of whom are facing the prospect of being tens of thousands of pounds out of pocket? Will he reaffirm his commitment to the House today that no one will lose out as a result of HS2?
Chris Grayling
I know that we have particular issues with some of the properties in Long Eaton, particularly the railway cottages. I have worked and will continue to work closely with my hon. Friend to ensure that HS2 does the right thing by those people.
Alan Brown (Kilmarnock and Loudoun) (SNP)
On “Question Time”, the Secretary of State intimated that, post Brexit, trucks will not be checked and will move freely through the border, as happens in Canada and the US. I have an official document that confirms that all lorries are stopped on the US-Canada border. Will he apologise for giving out duff information, do his homework and tell the House what the concrete plans will be post Brexit?
Chris Grayling
As I have said before—I say it again today—there will not be physical checks that require every lorry to be stopped at Dover. It is not physically possible to do it, and in today’s world of trusted trader systems and electronic processing of customs information, there is no need for that to happen. I would also say that we are confident that we will deliver, as is our intention, a sensible free trade agreement with the European Union that will make all this an irrelevant discussion.
Damien Moore (Southport) (Con)
Chris Grayling
My hon. Friend knows that I have been to Southport and talked to some of those affected. As a result of those recent discussions, we have been able to put back in two extra services to Manchester Piccadilly. Of course, the original franchise plan was for the services to go to Manchester Victoria, but I have listened carefully to what has been said. Timetable changes cannot happen quickly and easily, but I will do my best to work with my hon. Friend to ensure that there is a better mix of services for the future.
Matt Rodda (Reading East) (Lab)
With free bus travel for the under-25s estimated at £1.4 billion a year, why is the Minister opposing a scheme that could benefit up to 13 million young people, saving them up to £1,000 each a year, at a time when they face significant financial hardship due to tuition fees and the high cost of living?
Matt Warman (Boston and Skegness) (Con)
The Secretary of State has long taken a personal interest in the Boston bypass. Will he join me in commending the excellent campaign being run by my local paper, the Boston Standard, which is gathering evidence from local hauliers, in particular? Does he agree that it bolsters an already compelling case for an application to be made to his bypass fund for this road in due course?
Chris Grayling
As my hon. Friend knows, I have visited the proposed site of the Boston bypass on more than one occasion over the years. I know that a vigorous campaign has been run by his local paper, local activists and himself. You will know, Mr Speaker, that we will shortly be bringing forward the next stage of our proposals for what I have dubbed the “bypass fund”, and there will be opportunities to build bypasses in the not-too-distant future.
Dan Carden (Liverpool, Walton) (Lab)
Michael Fabricant (Lichfield) (Con)
My right hon. Friend the Secretary of State is a renowned blue-sky thinker, so does he imagine that any time soon, or even some day in the future, people will be able to get on an HS2 train in Manchester or Glasgow and go non-stop to the European continent?
Chris Grayling
For a moment, I thought my hon. Friend was going to ask me whether people would be able to get on an HS2 train in Manchester and travel to Lichfield. Of course, it always depends on the market. When the first trains started to operate through the channel tunnel, a fleet of trains was bought to provide links from the north of England through to the continent, but the market was never there—although one never says never.
Laser Misuse (Vehicles) Bill [Lords]
Lord Grayling ExcerptsWednesday 18th April 2018
(6 years, 7 months ago)
Commons ChamberRead Full debate Laser Misuse (Vehicles) Act 2018 View all Laser Misuse (Vehicles) Act 2018 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: HL Bill 75-R-I Marshalled list for Report (PDF, 72KB) - (23 Feb 2018)
The Secretary of State for Transport (Chris Grayling)
I beg to move, That the Bill be now read a Second time.
We can be proud of the safety culture across our transport sector in recent years, but we cannot be complacent and we want to maintain and improve safety standards. That is why we have to look at new areas where legislation is needed, and one of them is strengthening the rules against the minority of thoroughly irresponsible people who shine lasers at aircraft. At the same time, we will make it an offence to shine a laser at cars, trains, ships and air traffic control for the first time.
Sir Greg Knight (East Yorkshire) (Con)
Will not the Bill throw into doubt the long-established police practice of an officer on foot jumping into the highway and waving a torch at a motorist in order to stop a vehicle? Would that not be an offence under the Bill because a strict liability offence is proposed, as I understand it, or does my right hon. Friend expect the police to have to pray for salvation and to rely on clause 1(2) to argue that they have a defence?
Chris Grayling
I thank my right hon. Friend for raising that point, which may have been a request to join the Committee and argue about it in great detail. I argue that any potential law and order intervention would judge there to be a key difference between a torch and the modern laser pen that is causing such issues and on which, particularly in relation to aircraft, we need the law to be substantially strengthened.
Sir Greg Knight
I am sorry to labour the point, and I am most grateful to my right hon. Friend for giving way. That is what I initially thought would be the answer, but if we look at the Bill, we can see that a laser beam is defined in clause 3 as
“a beam of coherent light produced by a device of any kind”—
in other words, a torch.
Chris Grayling
I am not a physicist, but I think the key word is “coherent”, in that a beam is coherent if it focuses the light in a way that represents a danger to the public. As I have said, I encourage my right hon. Friend to join the Bill Committee—this may be one of the issues that are well worth debating—and I have no doubt that my colleagues on the Treasury Bench will be delighted to offer him such an opportunity. It is a serious point, however, and we will double-check.
I am very grateful to the other place, which has done a detailed job of scrutiny. Amendments made there have removed ambiguity and extended the provisions beyond vehicles to include air traffic control facilities. I thank my noble Friend Baroness Sugg and those in the Lords who took part in debates on the Bill, and the external stakeholders, particularly the UK Laser Working Group, that have made an important contribution to shaping the legislation.
It is important to say that there are legitimate uses for lasers. They are used as alignment aids in the construction industry, by lecturers in classrooms and by astronomers in the course of their work. We intend to legislate not against the use of laser pointers at all, but instead against their illegitimate use. They can dazzle, distract or blind those in charge of a vehicle, with serious and even fatal consequences. We know that, in aviation, such incidents take place during take-off or landing, or when aircraft such as police helicopters are carrying out civil safety duties.
Back in 2003, 15 years ago, there had never been a reported case of a laser being shone at an aircraft. The following year there were six cases, and by 2008 there were 200. There are now 1,000 a year, as indeed there were last year. Thankfully no aircraft, train or road vehicle in this country has had an accident as a result of these dangerous and senseless acts, but it is all too easy to imagine the potential consequences—for instance, a pilot being blinded by a laser when trying to land a passenger jet, or a train driver being dazzled from a bridge and missing a signal as a result.
It is already an offence, under the Air Navigation Order 2016, to shine a light at an aircraft to dazzle or distract a pilot. However, the maximum penalty is a £2,500 fine, and we do not think the fact that this is a summary offence gives the police adequate powers to investigate and pursue it effectively. Offenders can also be prosecuted, under another air navigation order, for the offence of endangering an aircraft. That carries a maximum prison sentence of five years and a £5,000 fine, but it involves legal complications. It is sometimes difficult to prove the endangerment of an aircraft.
The Bill will simplify the position. It is a straightforward measure, which will make it an offence for a person to shine or direct a laser beam towards a vehicle if it dazzles or distracts, or if the action is likely to dazzle or distract a person in control of a vehicle. It will extend to all transport modes, will give the police the powers they need to investigate, and will provide penalties that reflect the seriousness of the offence. This will be an either-way offence, which means that it can be dealt with in the magistrates courts or, as an indictable offence, in the Crown court. It gives the police powers, under the Police and Criminal Evidence Act 1984, to enter a property for the purposes of arrest and to search a property after an arrest. Those powers are not currently available to the authorities in respect of existing aviation offences. The maximum fine will be unlimited, and the maximum prison sentence will be five years. The Bill will extend to the whole United Kingdom. We have been working with the devolved Administrations, who are very supportive, and I am grateful to them for their co-operation.
As I said at the start of my speech, the Bill has already faced scrutiny in the other place, where it received strong cross-party support. It reaches us in much better shape as a result. One of the positive additions in the other place was the extension of the provisions to air traffic control, which has a key role in our aviation sector. It is right and proper for those who attempt to shine one of these devices at an air traffic control point to be treated in the same way. That is a constructive example of the way in which debate on such Bills can improve them.
The Bill has received widespread support from both the authorities and the transport industry. The British Airline Pilots Association has welcomed its reintroduction—it was, of course, debated before the general election, but had to be set aside because there was not enough time to proceed—saying that it is good news for transport safety. It has also been welcomed by airlines and airports, the National Police Chiefs Council, the National Police Air Service, the Military Aviation Authority, the Maritime and Coastguard Agency, the Rail Delivery Group, Public Health England and the Royal College of Ophthalmologists. That is a pretty good list of supporters.
Everyone agrees that we need to do something about this problem, and everyone agrees that the actions of the small number of individuals who behave in this way are utterly unacceptable. We must give our police the powers to deal with them in the toughest appropriate manner. I hope and believe that today, in the House, we can give our support to a measure that I believe is absolutely necessary for public safety, and whose time has come.
Rail Announcement
Lord Grayling Excerpts(6 years, 7 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Secretary of State for Transport (Chris Grayling)
With your permission, Mr Speaker, I would like to make a statement about the future of the west coast main line, our plans for the integration of track and train on our railways and our plans for the transition to the operation of High Speed 2 as it opens up in 2026.
I have already set out for the House our plans to bring the operation of track and train together on a day-to-day operational basis around the country, with the creation of new alliances between Network Rail and the train operators on south eastern and midland main line and the strengthening of the existing alliance arrangements on south western and southern. I have also set out our plans for a new partnership between the public and private sectors to operate the east coast main line.
Today I want to explain how this approach could start to inform the development of the west coast main line and HS2. I am also today publishing the invitation to tender to be the new west coast partner, which, subject to their delivering on their commitments, will operate the route until 2031 and will work with HS2 Ltd to pave the way for the opening of HS2. The west coast main line is one of the busiest mixed rail routes, if not the busiest, in Europe: it carries commuter traffic to six of our biggest cities and express trains between them; it provides essential intermediate services to places such as Milton Keynes, Coventry, Warrington and Preston; it is an essential link to north Wales, Scotland and Ireland; and it is also one of our busiest freight routes. It is this complex mix of traffic that is a key part of the case for building HS2 so that we have the capacity to meet these growing needs in the future.
The west coast franchise has been very successful in recent years, with high passenger satisfaction and substantial revenue growth for the taxpayer. I intend the new contract to build on that, up to and including 2026. There is already a close working relationship between Network Rail and the train operator, and I intend that to deepen under the new contract with the new operator. After that, however, the way in which we run the railway will change. After 2026, the express services will start to move off an increasingly congested part of the existing network and on to HS2. Brand-new and more frequent trains will provide additional capacity on faster services, and space will be freed up on the existing routes for improved services to other destinations. That will require a carefully managed transition as initial services provide travel to Birmingham and then, gradually, the HS2 network provides more and more of the inter-city service.
I want to explain today how the new contract will ensure that that smooth transition takes place, and to set out what we are working towards. I should emphasise that final decisions on the transition and the operational details are years away, but I think it right that, as we publish this new invitation to tender, we start to look towards what that end point could be. For example, HS2 could be an integrated railway operation, in charge of both its infrastructure and its services. That would be akin to what is provided on some Japanese high-speed lines, and would accord with the Government’s strategy of bringing together track and train. It could also be structured as a public-private partnership. There will be other options that we should explore before final decisions are made.
The exact shape and end state of the organisation does not need to be decided now, but I am very clear about one thing. I want HS2 Ltd to become a strong British organisation, potentially capable of not just building but operating a successful railway here. It should also become a strong international champion for the United Kingdom, as the organisation that runs Manchester Airport has done. Manchester Airports Group is a strong and effective organisation that has expanded in the UK, running first-rate operations here, and is now doing so internationally. It has proved itself to be effective at managing major projects and delivering good customer service. Today’s announcement, however, is not about creating a long-term organisational model for HS2. As we move into the 2020s we will need to prepare for the introduction of services, and through this new arrangement my Department is paving the way for that introduction.
The winner of the competition will help to design the new HS2 services, develop a new customer offering to take advantage of 21st-century technology and revolutionise the way we travel on high-speed rail, and provide input for my Department and HS2. It will run the existing west coast main line services until HS2 passenger services are introduced. After that it will continue to run successor services on the west coast main line until 2031, albeit to a different set of timetables and priorities, with a refocused service aimed at those intermediate locations. Between now and the start of HS2 services, it will also help to plan the introduction of the express trains to the new line and the move from one line to another, and help to put in place all the customer-facing resources that are necessary for the delivery of an excellent service on day one. If it performs strongly, it will also operate services on behalf of HS2 for a limited period after 2026. During that period, my Department will be closely involved with operations to ensure that the envisaged connectivity benefits of HS2 are realised.
The contract also includes a number of safeguards such as restrictions on branding, transfer of intellectual property and requirements for collaboration with HS2. That means that, while we will harness the innovative thinking of the private sector, no one bidder will be able to create something that only it could run in the future. The operator will also work with the Department and HS2 to consider the options for the end state, including what would be required for the transition to fully integrated operations undertaken by an eventual combined organisation. That short-term arrangement will be very similar to the modus operandi on Crossrail next year after it formally begins services as the Elizabeth line for Transport for London.
Throughout this period, the new operator will also deliver a high-quality experience for passengers and continue to drive growth on the existing west coast main line. Passengers will benefit from enhanced compensation for delays of more than 15 minutes, fares and ticketing systems that are simpler to understand, and the introduction of an accessibility panel to advise on all aspects of the way in which the railway is operated. It is important to ensure that all passengers are placed firmly at the heart of all planning decisions.
What I am setting in train today for the West Coast Partnership are our plans to keep industry-leading services on the west coast until HS2 enters operation, to ensure that the first HS2 services are delivered with the help of an experienced operator that has been working hard to plan for their introduction, and to use that approach to help to inform decisions on what the final shape of the organisation should be. I believe that that is the best way of ensuring a smooth transition to what will be an exciting new future for our railways, and I commend my statement to the House.
Rachael Maskell (York Central) (Lab/Co-op)
I thank the Secretary of State for advance sight of his statement, but I am perplexed as to why he has come to Parliament to announce a set of administrative arrangements. There are so many pressing rail issues that the Secretary of State should be bringing to the House, not least the promise to come back to the House about future arrangements on the east coast, which was of course due weeks ago, rather than to announce invitations to tender for rail franchises. If this House spent all its time looking at every franchise, we would not get through any other business. The statement is simply thin gruel. Once again it sets out vague aspirations and possible options. Yet again it is evidence that the Government will not set out a strategic direction, but instead just delegate decisions to the private sector.
There are huge questions about the recent history of track and train alliances. That did not work on the south-western railway; it failed. Why will it be any different under this partnership? Today’s announcement about an announcement is setting the course of the Government’s real priority, which is privatisation of the infrastructure: a partnership with a private company, but extending its grip into the infrastructure, too.
Why would the Secretary of State bring the profit motive back into safety-critical parts of the railway? We must never forget why Labour brought Railtrack back into public ownership: it was for the safety of the great British public. None of us on the Labour Benches will ever forget the past, and how private profit was the objective. With private, we know that the objective is to put money into the shareholders’ pockets, not to invest in the public. This is why Labour’s plan to rescue the railways and bring them back into public ownership is more imperative than ever; the public demand it. Labour would never take such a risk with public safety, nor with public money.
Last month’s supplementary estimate report said that the Department for Transport’s rail revenue from train operators was down nearly £250 million this year and a Treasury bail-out of £60 million was needed. That is hardly evidence of a system working, is it?
Franchising has completely failed, with 13 direct awards and extensions to contracts. The west coast, however, is the jewel in the crown of the rail network. The Labour Government spent £9 billion upgrading it, but now the Secretary of State wants to flog off the family silver before it is even in public hands.
The UK railways have the best safety record in Europe; will the Secretary of State’s plans guarantee this excellent safety record? The UK railways’ safety record has been based on a rigorous risk management system; how will these plans ensure that the risk management approach will continue across the whole network? Is this not a return to the bad old days of Railtrack?
Of course, the railway is about the growth of our economy, and the Secretary of State is handing over responsibility for the economy of the north to these private companies; no wonder people do not believe in the northern powerhouse. Why will the Secretary of State not do what the last Labour Government did in 2009 and take this franchise back into public ownership? That is the best way to preserve the taxpayers’ money and the public interest.
Labour’s integrated public rail will benefit the economy, the environment, the Treasury and the public. We look forward to the right to run our railways again.
Chris Grayling
This is the first time that I have been told off for being informative to the House about what we are doing. We are publishing today a pathfinding franchise agreement that will pave the way for Britain’s most expensive and most substantial new railway for more than 100 years, and I am explaining to the House how we are approaching the issue of making that transition. This does not seem to me to be something I should not be informing the House about, but I am always surprised in this place.
The trouble with Labour is that it just thinks everything private is bad; it seems to be a completely ideological statement. After many years when the Labour party took a relatively common-sense approach to the balance between public and private, it has now walked a million miles away from that: everything private is bad, and it wants to nationalise everything and drive investment out of this country. Let us take an example. Labour cannot explain to us, in its plans to renationalise the railways, what it would do with what will by then be approximately £19 billion of privately owned trains on the network. All the new trains that are coming now and all the new trains that are being delivered in the future are privately owned. Where will the money come from to pay for those, and to pay for the new trains in the future? We get no answer at all from Labour on any of that.
The hon. Lady talked about safety, and safety is paramount in this country. We have an excellent regulator, and an excellent chief inspector of railways who does a very effective job, in my view, of holding the public and private sectors’ feet to the fire to ensure that we maintain safety standards on the railways. That is something that will continue for the future. She also asked about the northern powerhouse. Let us look at how little investment in the railways took place in the north when Labour was in power. We are replacing every single train in the north, and I have just announced a £3 billion upgrade to the trans-Pennine rail line. We have done upgrades to the Calder Valley line and electrified the line between Liverpool and Manchester. We are currently electrifying the line to Preston. Those are things that never happened under Labour. The replacement of every single train in the north of England is something new or nearly new. None of that happened during Labour’s 13 years in power.
The hon. Lady wants to take the west coast main line back into public ownership, but that is a railway line that is performing well and has very high levels of passenger satisfaction. The last thing we would want to do is to hand it back to the Government. Let us allow it to carry on succeeding. That is what we are aiming to do. We are setting a path that will lead us to what I hope will be a fantastic new world for Britain’s railways when HS2 opens after 2026.
Trudy Harrison (Copeland) (Con)
I thank the Secretary of State for his statement. It will be welcomed across my constituency and throughout Cumbria, as will the introduction of Sunday services, starting in May, which will connect us to the west coast main line. Will he tell me what economic advantages this will bring to Copeland and to Cumbria?
Chris Grayling
The difference that HS2 will make is that it will provide far more capacity and better connections across the whole country. Whether you are coming to London from Cumbria, Manchester, Liverpool or Birmingham, or travelling to points in between, there will be more capacity, faster trains and better connections between intermediate places. That is so important. I am delighted about the arrival of the Sunday services in my hon. Friend’s constituency. She and I stood at Seascale station while a Pacer train chugged past, and she will be delighted to know that in a few months’ time that Pacer train will be in the scrapyard.
Alan Brown (Kilmarnock and Loudoun) (SNP)
I thank the Secretary of State for giving me advance sight of his statement, but it really is lacking in detail. He said that he had already set out plans for a new partnership for the east coast main line, but I suggest that the plans for that line are still unclear. We need a lot more information on that. He also said that the congestion on the west coast main line and its links to Scotland and other areas underpinned the business case for HS2. That raises the question of why HS2 is being built only as far as Crewe, and why a north-south link is not being constructed at the same time.
The Secretary of State has detailed possible methods of operation, but he has said that they do not need to be decided on now, so what are the timescales for deciding future methods of operation? Will he confirm that the public sector will be involved and will be allowed to bid? When will we know the new timetables and priorities for the west coast main line? What will be the bid status for companies that have failed in existing franchises? The existing west coast main line contract was supposed to look at the remodelling of Carstairs Junction, so will he give us a progress report on that? Will he also tell us what discussions he has had with the Scottish Government on the existing underfunding of the rail settlement to Scotland, and on the impact that that could have on the west coast main line?
What tender appraisal lessons has the Secretary of State learned from existing failed franchises? What checks and balances will there be to ensure that we do not see further compensation disputes, conflicts of interest and armies of cost consultants involved in these franchises? What west coast main line upgrades will there be north of Crewe? I note that the current proposals will mean that new HS2 trains will run more slowly north of Crewe than the existing Virgin trains do. That would be an unacceptable performance measure, so will he tell us what upgrades are planned for north of Crewe? Lastly, his Department has already needed £60 million from the Treasury to balance the books this year because of the failures in the existing franchise system. How sustainable will the future franchises be?
Chris Grayling
On that last point, there was a revenue issue last year around Govia Thameslink Railway and the completely unnecessary strike action taken by the unions. I am happy that that railway is now mostly back to normal and I hope that we will not have that issue again. The hon. Gentleman asked about the east coast main line. I will come back to the House when it is the right moment to do so, when we are ready to set out the approach that we are going to take. It is important to ensure that that is dealt with on a value-for-money basis but also on an operational basis, to ensure that passengers are not affected by the trouble on that route at the moment.
The hon. Gentleman asked about timetables on the west coast main line. That will come from the bids that are tabled for that particular route, depending on how the bidders plan to enhance services. The invitation to tender starts today, and we will start to get the proposals back during the course of this year. Of course, no one can bid for a franchise without a passport, and that will continue to be the case. He also asked about the funding level for Scotland. I simply remind him that the Government have provided more than would have been provided under the Barnett formula. Scottish Members normally argue for the Barnett formula, except when it is inconvenient for them to do so. The reality is that they should be glad to get anything more than the Barnett formula, because that is what they always argue that Scotland should receive.
The hon. Gentleman asked about learning lessons from failure. As I said in my previous statement on the east coast main line, we have tightened the risk-sharing mechanisms and we will be watching this particular franchise like a hawk to ensure that it is financially solid and robust. He also asked about the speed of journeys to Scotland. Of course, HS2 will reduce journey times to Scotland. There is an issue north of Crewe because the new classic-compatible trains are not tilting trains, and that is something we will have to address as we go through the 2020s, but the reality is that journey times to Scotland will be reduced as a result of HS2 arriving. That is part of delivering better services right across the country and, crucially, delivering jobs right across the country. That will happen all across Scotland, Wales, Northern Ireland and England.
Andrew Jones (Harrogate and Knaresborough) (Con)
I congratulate my right hon. Friend on his statement. What he has outlined will mean a smooth transition to the national network upgrade that HS2 will deliver. Will he give the House a little more information about what the announcement will mean for passenger rail fares on the west coast main line?
Chris Grayling
It is really important that HS2 does not become a premium service that today’s passengers cannot afford to travel on. Our expectation is that fare structures will stay broadly similar, and it is certainly not my intention to create a situation where HS2 suddenly becomes much more expensive than the west coast main line is today.
Lilian Greenwood (Nottingham South) (Lab)
There was not actually much new information in the Secretary of State’s statement, but it is clear that this invitation to tender is late, because it was expected in November last year. Will he explain the reason for the delay and its implications? Can he confirm that the award date is still November 2018, and that the new franchise will still start on 1 April 2019? Will he tell us whether the delay will have any wider impact on the Department’s rail franchise schedule?
Chris Grayling
We do not expect this to have a significant impact on the franchise schedule. As the hon. Lady knows, we have just put in place a direct award to tide us over because of the delay. Things might be slightly late, but we are broadly in line with our original timetabling plans. It is important to get these things right. Also, given that the franchising team has had quite a lot to deal with lately, it is important to ensure that they have the time to get the detail right. That is what we have been seeking to do.
Mary Robinson (Cheadle) (Con)
I am grateful to my right hon. Friend for his statement. Will he explain how, as the plans proceed, the economy of the north-west will benefit from the improved connectivity, particularly around the hub at Manchester airport? Will he tell us how that will improve the economy in the Greater Manchester area as well?
Chris Grayling
The hub around the airport is going to be particularly important, and it is very much on my mind as we develop phase 2b of HS2 and move towards the development of Northern Powerhouse Rail, where there must be a strong connection with the airport. The other benefit of the investment will be that it will create the space for more commuter services around Manchester. I know that there is significant congestion there—I have seen it in my hon. Friend’s constituency—and we need to provide better commuter services into Manchester, and indeed into Birmingham, Leeds and London. That is one of the things that HS2 will do, by taking the existing express trains off the existing routes.
Mr Dennis Skinner (Bolsover) (Lab)
Is the Secretary of State aware that if no changes are made to the proposals for HS2 as it goes through Derbyshire, 1,000 jobs will be lost at McArthurGlen, which is not far from South Normanton, and that more than 30 houses will be knocked down at Newton in my constituency? I have been working with the people at Newton in order to find alternatives, so will the Secretary of State meet the Newton people with a view to seeing whether there are any decent proposals for tunnelling, rather than knocking the houses down, and for ensuring that the jobs at McArthurGlen are safe? Will he give us that assurance today, so that I can make arrangements with the Newton people to come and take part in discussions?
Chris Grayling
As I have said all the way through, it is not possible to do something on this scale without having an adverse effect somewhere, but we will always do our best to minimise the impact. We are also always willing to have a dialogue with Members from across the House about such situations, so I will of course have that dialogue. I want to try to ensure that we do not adversely affect centres of major employment, so either the HS2 Minister or I will happily pursue a conversation with the hon. Gentleman.
Jeremy Lefroy (Stafford) (Con)
Stafford and Stoke-on-Trent currently have direct, high-speed services to Liverpool and Manchester respectively. However, the HS2 proposals mean that high-speed services from Stafford and Stoke will end at Macclesfield, so we will lose our direct connection with the northern powerhouse. That is unacceptable. Will the Secretary of State consider the situation again and see how its effects can be alleviated?
Chris Grayling
I am aware of the situation, and the important thing to say is that we are a long way away from detailed timetabling. I share my hon. Friend’s view about terminating at Macclesfield, and I have told HS2 Ltd to do some work on that. We have to get the timetabling and the flow of services right, and I do not want anywhere to be disadvantaged by the transition.
Graham Stringer (Blackley and Broughton) (Lab)
As a former chair of Manchester airport, I thank the Secretary of State for his kind words about how it has been run. One reason for the airport’s success is that it has been careful in choosing its private sector partners over the years. Will the Secretary of State therefore explain why he is allowing private companies that have not honoured their contractual obligations in franchises to compete for important lines?
Chris Grayling
There are two points to make when talking about potential long-term private partners. First, the arrangements at Manchester airport have worked well. It is still majority-owned by local authorities, but it actually operates as an independent business with private shareholders. It is a good example of a public-private partnership, which may well be the way forward for HS2 Ltd. That does not mean that the organisations that are running franchises are those that might end up as private partners in the future, because we are looking at a different type of model for the future. Secondly, as for future bidding, as I have said before, I will fulfil my legal obligations, but I will also be as careful as possible to protect the interests of the railways and of passengers.
Maria Caulfield (Lewes) (Con)
I welcome the announcement of the invitation to tender for HS2 and the benefits that HS2 will be bring the region. Will the new model be used when the Southern franchise is broken up and re-tendered? Is there a timescale for that?
Chris Grayling
The current Southern franchise will continue until 2021, and we are working through what the structure should be when it is re-let in a different form. I intend there to be a much closer alliance between Network Rail and the private sector, following a similar kind of model to that which we are using with Southeastern. It is necessary to bring the day-to-day operation of the track and trains together to improve performance. We have done some of that already on the Southern franchise, which has helped to make a difference, and that should continue.
Derek Twigg (Halton) (Lab)
When the Secretary of State talked about Labour spending, he seemed to forget the £8 billion invested in the west coast main line. When Labour took over back in 1997, the line was in a dreadful state, and it is so good today because of that Labour investment. The Secretary of State said several times during his statement that public satisfaction is high, that it is doing well and that it is well run, so what are his reasons for wanting to change it?
Chris Grayling
The hon. Gentleman asks, “What are the reasons for wanting to change it?”, but we are moving from one franchise to another; we are not looking to make massive changes to how the west coast main line currently operates. When it comes to 2026 and the arrival of HS2, that is a different situation. I am not talking about selling or privatising the infrastructure. Post-2026, we will have a separate network with its own infrastructure, and the question—it is not one for me, but for my successors—will be, “What is the best way of running that railway?” I have set out several strong options today, but the Government’s policy is that bringing together the operation of the track and trains—integration on the railway—is the best way of creating an efficient and effective railway.
Mike Kane (Wythenshawe and Sale East) (Lab)
We know that the Secretary of State is desperate to get from his home in Surrey to his seat at Old Trafford more quickly, so why are the Government dragging their feet when it comes to funding for the station at Manchester airport and the east-west alignment negotiations at Manchester Piccadilly station?
Chris Grayling
The biggest challenge in getting to Old Trafford on a match day are all the roadworks on the M60, which are due to our investment in the motorway network, and all the roadworks around Old Trafford, which are down to the support we are providing to Manchester to invest in the extension of the Metrolink.
The hon. Gentleman will be aware that Network Rail and Manchester City Council are in detailed discussions about Piccadilly, and we are close to moving forward with desperately needed improvements to the two platforms, and I want that to start soon. As for the airport, we need a really good hub station at the airport, and we are now working through how best to take the Transport for the North proposals for Northern Powerhouse Rail and create a deliverable programme. The first bit of that starts next year with the upgrade of the TransPennine route.
Bim Afolami (Hitchin and Harpenden) (Con)
Does the Secretary of State agree that working with private sector partners on the west coast main line has delivered huge improvements to reliability and customer service? Will he reassure my constituents that any operational changes that have been outlined or envisaged today will not have a negative impact on their service?
Chris Grayling
That is my goal. The thing is that I am very much in favour of the public sector and the private sector working together in partnership, and I have talked about that in other parts of the rail network. The difficulty is that the Opposition do not seem to want the “private” bit at all—everything has to be public. Both sectors bring strengths to the party, and the working partnership that exists today between Network Rail and Virgin Trains on the west coast main line has delivered significant performance and customer satisfaction improvements over the past few years.
Mary Creagh (Wakefield) (Lab)
Virgin-Stagecoach is not the first, not the second, but the third train company to walk away from the east coast franchise mid-contract, stating that it could only run it for a short number of months. I came running over to the Chamber today in eager anticipation of hearing the Secretary of State say that he was going to set up a directly operated rail company along the lines of the model we had in 2009, which delivered £1 billion back to the taxpayer over six short years. Will he tell the House what he is doing to get the east coast main line franchise back on track, delivering for passengers, staff and taxpayers? Will he ensure that no announcement is snuck out in the middle of the recess?
Chris Grayling
When we are ready to make an announcement about the future, I will come to the House to do so, and I have said that several times. We are ensuring that we get things right. As I have said before, we have been preparing the alternative operator of last resort for some months. When we are ready to take things forward, I will say so.
The hon. Lady compares the situation with what was there previously, and I simply remind her that, notwithstanding the financial problems in the franchise, it has a high level of passenger satisfaction and is running more trains, employing more people and delivering more money to the taxpayer. The problem is that there has been not enough success, not a lack of it.
Peter Kyle (Hove) (Lab)
In the previous Parliament, the Department was so focused on HS2 that it took its eye off the real challenge facing our country: getting people to and from work in the south-east of England. Will the Secretary of State guarantee that he will not make the same mistake again and that the Southern rail fiasco will never be repeated?
Chris Grayling
We are slightly in the hands of militant trade unions deciding whether they want to cause trouble, because the analysis of what went wrong showed it was almost entirely down to the action of the trade unions. However, I have also said on many occasions that the unions were not the only issue on that line, and I hope he accepts that performance has improved, but it needs to carry on improving. We need a broad-ranging programme of renewals, because there are still too many track and signal failures, which is why we have set aside the biggest block of funding—£20 billion—for renewals in the next control period. Some of that will flow to the hon. Gentleman’s line, but it will also go around the country to deal with similar issues elsewhere.
Rachel Reeves (Leeds West) (Lab)
Following the excellent question from my hon. Friend the Member for Wakefield (Mary Creagh), may I pick up on the issue of Virgin-Stagecoach and the east coast main line? In a matter of weeks or months the Government will have to make a decision for passengers in our constituencies in Yorkshire and elsewhere, so can the Secretary of State tell us when a decision will be made, whether there will be penalties for Virgin-Stagecoach for walking away from the contract, and whether he will keep on the table the very sensible option of bringing the line back into public ownership?
Chris Grayling
I have said clearly that I am not simply evaluating, but preparing for two options: one is an operator of last resort controlled by my Department, and the other is a not-for-profit direct award. I will make that decision shortly, and when I do I will come back to the House. It is not just about being ready to make a decision; it is also about knowing whether whichever option I choose is ready to happen. It is as much about preparation as it is about deciding. When we are ready to take that step, we will do so. The reason I am taking the time to get this right is that I do not want passengers—the hon. Lady’s constituents—to notice any change from one day to the next. They are the most important people in this.
Layla Moran (Oxford West and Abingdon) (LD)
We of course welcome any investment in rail, but HS2 must not be allowed to soak it all up. The Government have an incoherent approach to electrification, which has been indefinitely delayed in Oxford and abandoned on the lakes line and the midland main line. Meanwhile, the Government have been pulled up again on air pollution. Why do they not follow their own lead on cars and move away faster from polluting diesel engines?
Chris Grayling
A central part of our strategy on the roads is hybrid cars, and a central part of our strategy on the railways is hybrid trains. The biggest difference we can make in getting people off the roads and on to rail is to ensure that we expand capacity, and that is what we are doing, with longer trains, new and reopened routes and new stations across the country, creating a better environment for people who want to travel by rail. It is the biggest programme of investment in our railways since the steam age.
Mr Paul Sweeney (Glasgow North East) (Lab/Co-op)
The Secretary of State lauds the benefits of reduced journey times between London and Glasgow, but that is not the full picture, because we know that, as a result of the HS2 investment, journey times between Glasgow and Manchester will actually increase. How can this be benefiting all regions of the UK when journey times between Britain’s second and third biggest cities will be increased? Is it not yet another example of putting the profit motive over the real national interest?
Chris Grayling
This has nothing to do with the profit motive; it has to do with whether or not trains tilt. We need to ensure, through timetabling and planning after HS2 is opened, that we deliver the best possible outcome for all the services and all the destinations it serves. It is not a question of the profit motive or the private sector; it is a question of technical capabilities and how we deliver the best possible outcome.
Paula Sherriff (Dewsbury) (Lab)
Further to the question from my hon. Friend the Member for Wakefield (Mary Creagh), my constituency neighbour, can the Secretary of State confirm that Virgin-Stagecoach will be allowed to rebid for the east coast franchise when the contract is put out to tender, because that appears to be verging on the ridiculous?
Chris Grayling
I think that the hon. Lady has misunderstood our plans. From 2020 we are going to do things completely differently on the east coast main line; we will not be using the current bidding process. We are shaping a public-private partnership. It might be a public-private partnership that brings investment in digital rail, and it might have a completely different corporate structure. We are working through that longer -term plan now while preparing to put in place the intermediate arrangements. It is not a question of who will or will not be allowed to bid, because we have not even decided what the process will be.
Diana Johnson (Kingston upon Hull North) (Lab)
It is disappointing that the Secretary of State has today said nothing about the burning issue in the north: poor connectivity between east and west. I am sure that he shares my concern that there is no direct service between Hull and Liverpool, or between Hull and Manchester airport, and that from May trans-Pennine services running from Hull to Manchester will be slower. Will he agree to meet me and key stakeholders from Hull to discuss what he can do to improve connectivity in the north?
Chris Grayling
I and my ministerial team are always happy to meet to discuss services to the great city of Hull. The hon. Lady is not entirely accurate, because I did refer to the announcement I made a month ago about the start of the £2.9 billion investment in the trans-Pennine upgrade, which will start next spring.
Chris Evans (Islwyn) (Lab/Co-op)
The Minister will know that £1.2 billion was overspent on electrification between London Paddington and Swansea, and he knows that is not the only transport infrastructure project in relation to which the National Audit Office has found overspending. How confident is he that safeguards are in place for future infrastructure contracts for the east and west coast main lines, along with HS2, to prevent overspending that needlessly costs taxpayers millions?
Chris Grayling
It is always possible for technical problems to arise, as we are seeing in Bolton at the moment, but I think that lessons are being learned. Lessons are certainly being learned from the Great Western main line, which has not been run on an acceptable basis—it has been subject to reviews by the NAO, the Public Accounts Committee and the Transport Committee. I can assure the hon. Gentleman that Network Rail and my Department are seized of the need to ensure that that does not happen in future.
Rail Update
Lord Grayling Excerpts(6 years, 8 months ago)
Written StatementsRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Secretary of State for Transport (Chris Grayling)
I have today launched an invitation for investors who want to invest in rail infrastructure to bring forward proposals for the new southern rail link to Heathrow. In addition they are being invited to propose schemes around the country that could enhance and expand the rail network. Promoters and investors now have two months to start working up proposals which are financially credible without Government support.
This Government are already making the biggest investment in the railway since the Victorian era, delivering better journeys for passengers across the network. However, I want to go further by unlocking new private sector funding to invest in railway infrastructure across the country. This will be in addition to the Government’s significant commitment to invest £48 billion in railway infrastructure in the next funding period.
Governments do not have a monopoly on good ideas for the railways. I have been clear that I want the knowledge and expertise of investors and local partners to contribute to delivering new connections, more services and better journeys for passengers.
This approach has already proved effective on a number of roads schemes in the UK. By encouraging innovative ideas and new investment on our railways, we can relieve the burden on taxpayers and fare payers with schemes that match our transport needs, support our economic and housing aspirations and ensure everyone benefits from an enhanced rail network.
Heathrow is a perfect example of how this approach can make a real difference. The Department is continuing to work on a western rail link to Heathrow. The proposed southern rail link to Heathrow is an exciting opportunity to harness new and innovative ideas from the private sector and there are already a number of consortia looking to construct it. I am certain that there are other opportunities nationwide for third parties to work with the Government to improve the railway.
I have published my guidance for market-led proposals to provide clarity on what Government are looking for from these ideas and the process by which it will consider them. I have also published the “Rail Network Enhancements Pipeline”.
When I published my high level output specification and statement of funds available for the railway in England and Wales for the next investment period, I made clear that the Government were developing a new process for rail enhancements—the “Rail Network Enhancements Pipeline” provides this. This is designed to ensure that future rail projects are planned and scrutinised to deliver maximum value and benefit to rail users and taxpayers.
Taken together this provides a clear framework for how we will improve the way we enhance our railway.
The changes I have outlined today lay the foundations for improving rail access to Heathrow. They also set in motion ambitious proposals on new rail schemes that could deliver significant improvements for passengers across the network and to maintain the record levels of investment this Government are delivering in our railways.
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