HS2 Update
Lord Grayling Excerpts(6 years, 8 months ago)
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The Secretary of State for Transport (Chris Grayling)
I am pleased to inform the House that we have published our consultation response on taking forward the vision of a Crewe hub.
This response signals how our plans will support that vision and allow for the introduction of an additional HS2 service to Stoke-on-Trent.
To enable this, we will amend our plans for HS2 Phase 2A, from Birmingham to Crewe. This includes 400 metre platforms at Crewe, which allow longer HS2 trains to split and join, opening up opportunities to serve more destinations including Stoke-on-Trent and enabling more people to access high-speed, long-distance services.
We also intend to ask the franchise operator, West Coast Partnership, to include a high-speed service to Stoke- on-Trent in its market development and service plans.
A Crewe hub could generate significant opportunities— not only for Crewe, but also for the surrounding region. To fully realise that vision will need central and local government to work together and require future decisions to be taken as part of Phase 2B.
We welcome the progress being made by Cheshire East Council and the local enterprise partnership in identifying how they could invest in the scheme to ensure the benefits are fully realised.
The steps we are taking today will ensure Crewe and Stoke-on-Trent can benefit fully from HS2 and build on the earlier decision to bring the benefits of HS2 to Crewe from 2027, six years earlier than originally planned.
HS2 will become the new backbone of our national rail network. It will increase capacity on our busy railways and improve connections between our biggest cities and regions. It will support our industrial strategy, generating jobs, skills and economic growth to help build an economy that works for all.
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Oral Answers to Questions
Lord Grayling Excerpts(6 years, 8 months ago)
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Paula Sherriff (Dewsbury) (Lab)
The Secretary of State for Transport (Chris Grayling)
We do not allocate transport funding on a per head of population basis; our decisions are based on a rigorous and fair appraisal process that ensures that spending goes where it is most needed and where it delivers the greatest value for money. Recent analysis by the Infrastructure and Projects Authority shows that planned central Government transport investment over the next four years is evenly balanced, with £1,039 per head of population in the north, compared with £1,029 in the south.
Paula Sherriff
May I first take this opportunity to thank all those involved in keeping our transport systems going in this inclement weather? I am sure that fellow Yorkshire MPs will have shared my surprise at the Secretary of State’s recent article in The Yorkshire Post, in which he claimed that spending in the north was somehow greater than that in the south—if, through a rather imaginative calculation, we ignore London. Does he agree that simply spinning figures will not fix our archaic northern railway systems or get northern commuters to work on time?
Chris Grayling
I echo the hon. Lady’s comments about those who are working hard to keep the transport system open today; we are very grateful to them all. In a week when the Labour party has already had issues with its use of statistics, she should look up the official statistics from the independent Infrastructure and Projects Authority, which show that planned central Government spending is higher in the north than it is in the south.
Mr Philip Hollobone (Kettering) (Con)
I am sure that we could spend more Government money on transport in the east midlands, particularly in Northamptonshire, and especially in Kettering. The new franchise for the midland main line is currently being negotiated. Will the Secretary of State ensure that Kettering’s rail services are better after the franchise is awarded than they are now?
Chris Grayling
My hon. Friend, who is a strong champion of Kettering, will be delighted to know that the expansion in capacity to Corby means that there will be a much better commuter service in the mornings and evenings through Corby down to Kettering, and to Wellingborough and beyond. That is one of the benefits of the biggest investment in the midland main line since the 1870s.
Mr Clive Betts (Sheffield South East) (Lab)
Just to give the Secretary of State an example of unequal treatment, is it true that for the new east midlands rail franchise in 2020 the current HST—high-speed trains—carriages will be scrapped, because they are disability non-compliant, and the power cars will then be matched with second-hand, cast-off carriages from the east coast main line? Instead of the brand new, hybrid hydrogen trains that we were promised, we will be getting hybrid trains composed of 30-year-old power cars and 30-year-old discarded carriages from another line.
Chris Grayling
I do not know what stories the Labour party has been listening to. The midland main line will have brand new, bi-mode trains delivered as soon as possible—
Chris Grayling
In the early 2020s, which is years ahead of what would otherwise have been the case under the original scheme.
Mr Iain Duncan Smith (Chingford and Woodford Green) (Con)
Within the context of equity of spending, I wonder whether, after this snow event is over, my right hon. Friend will ask some serious questions about, or even have a review of, why we still seem to be in no way prepared for such events. For example, I discovered yesterday that Heathrow is busy offloading flights because it cannot cope, whereas—[Interruption.]
Mr Duncan Smith
Yes, regional flights. What I am saying is that, given all of that, airports such as Gatwick and others are able to cope. Does my right hon. Friend not think that it is ridiculous that some airports are simply unable to cope while others across the UK can?
Chris Grayling
I know that a number of Members are here today because their flights to regional airports have not been able to take off. I hope and expect that we will be able to sort that out as quickly as possible today, although it is really important that the transport system is run safely. Of course, one of the benefits of the expansion of Heathrow is that the airport would become more resilient to such difficult situations, and connections to regional airports would be more reliable.
Alan Brown (Kilmarnock and Loudoun) (SNP)
I, too, pay tribute to those transport workers who are keeping the system going at this difficult time. The Secretary of State said in his first answer that the allocation of funding is a rigorous and fair process, so can he explain why the Government have ignored the Office of Rail Regulation’s recommendations by underfunding Scotland by £600 million? Since then his Department has been able to cope with a £240 million loss of revenue as a result of the situation with Southern rail and found £245 million for High Speed 2. The Government have been ignoring the Scottish Government since last July, so will they now meet the Scottish Government, or are these just weasel words about equity of funding?
Chris Grayling
Once again, the Scottish National party is arguing against the use of the Barnett formula. SNP Members love the Barnett formula when they think it is advantageous to them, but when they do not like the Barnett formula, they want to get rid of it. I simply say to them that this Government have followed the principles of the Barnett formula, and actually the Treasury has given Scotland a bit more money above that. I wish the SNP would stop complaining. The reality is that Scotland is now better represented, with a group of Conservative MPs who are much more effective than the SNP ever was in getting this Government to do that bit extra for Scotland.
Mr Ranil Jayawardena (North East Hampshire) (Con)
Imran Hussain (Bradford East) (Lab)
The Secretary of State for Transport (Chris Grayling)
I am not sure I see any merit in the early termination of the Virgin Trains East Coast franchise. That is not something I would wish to happen, but we have to deal with the world as it is, rather than as how we would like it to be.
My priority is to ensure the continued smooth running of the east coast franchise for its passengers and employees, and to make sure that the trains run and deliver the service that people need. As I told the House on 5 February 2018, a new arrangement to operate the railway prior to the new east coast partnership in 2020 needs to be put in place. We are currently conducting a full appraisal of the options, and I will return to the House in due course.
Ian Mearns
I am afraid to say that service standards have deteriorated on the east coast line since Virgin-Stagecoach took the franchise—I am a regular customer on that line—despite the best efforts of the excellent staff on board trains and at stations. Those staff face having their sixth employer in a decade and a half. Will the Secretary of State meet me and some of those staff, so that they can express their concerns about the way in which the franchise has been conducted? Will he give the House an undertaking that there is a genuine public sector operator ready to take over should that be required—or has Directly Operated Railways been outsourced already?
Chris Grayling
On the last point, I can give an absolute guarantee that that is the case; we have been making preparations for different eventualities for some time and there is a genuine alternative, if that is deemed to be best for the passenger and best value for the taxpayer. My ministerial colleagues and I are happy to talk to staff, but I would correct the hon. Gentleman on one point: the reality is that the independent assessments have shown a higher level of passenger satisfaction on that route since the change of franchise, not a lower one.
Karen Lee
I, too, wish to say a huge thank you to the staff who have been involved in keeping the trains running. As has been said, the current Virgin Trains east coast line franchise agreement will end three years early, making it the third franchise failure in about a decade. As someone who uses the line, I do not agree with the Secretary of State’s assessment of it. But will he recognise that there is a problem and see this as the perfect opportunity to bring the contracts back in house?
Chris Grayling
As I have said in this House before, I need to do what is best for passengers and for the taxpayer. The reality is that since the transition, regardless of the fact that Stagecoach clearly got its numbers wrong, passenger satisfaction has risen, more people are being employed by this railway and it is delivering more money to the taxpayer. [Interruption.] That is the reality. Labour Members can say it is not true, but it is; it is a fact that they just have to deal with.
Liz Twist
I assure the Secretary of State that after three failed franchises and the experiences of a directly operated railway my constituents would much prefer a directly operated railway. Will he commit to providing a directly operated railway service, in the public interest?
Chris Grayling
As I have said, I am going to do what is best for the passenger and for the taxpayer. I am sorry that the Labour party does not seem to get this, but the reality is that passenger satisfaction levels are higher today than they were three years ago—that is what the independent research shows. Labour Members may not like it, but it is true.
Imran Hussain
Next year, Bradford would have seen a marked increase in the number of much-needed direct inter-city trains serving the city, but the chaos with the east coast line has put that in serious doubt. These extra trains are vital to improving Bradford’s connection to the rest of the country, so will the Minister commit to ensuring that, whatever happens to the east coast franchise, Bradford will see an increase in the number of direct trains?
Chris Grayling
This is an important point, so let us be clear: it is my intention that, whatever arrangements are put in place for the next few years, the service improvements that have been promised will be delivered. We face an issue on infrastructure and additional capacities on the northern part of the route, which will have to be resolved and may mean some amendments to the timetable for new services, but that will not stop us delivering those new services. In Bradford’s case, I am expecting to be able to fulfil the commitments that were made.
Martin Vickers (Cleethorpes) (Con)
I agree with my right hon. Friend that there are no merits in the early termination of the franchise, but there are opportunities from the new partnership. My constituency has 10 railway stations, none of which have a direct rail service to London. Does he agree that this is an opportunity to look at providing services to those towns not currently served?
Chris Grayling
As I know, my hon. Friend has been a regular advocate for direct services, and I would like to see those happen. I am looking to see whether we can maximise the capacity on the east coast main line to make additional services possible. Of course the arrival of HS2 will allow many services that cannot be run now because of capacity constraints to happen, because of the additional capacity it will create on routes to the north and Scotland.
Jeremy Quin
I am absolutely going to. In respect of the proposed alternatives to the current east coast franchise, has the Secretary of State seen President Macron’s recent remarks about the nationalised French railways, and has he any remarks to make on them?
Chris Grayling
Wisdom sometimes comes from our allies across the channel. I did see those remarks, and they are a timely reminder that a nationalised railway is not the panacea that some believe it is.
Mr Speaker
It was not the Horsham perspective, but the international perspective. Why would I expect anything less from someone so illustrious as a man who served as my constituency chairman for three years, for which he deserved a medal?
Alan Brown (Kilmarnock and Loudoun) (SNP)
The Secretary of State says that Stagecoach got its sums wrong, but clearly his Department got its sums wrong, too, when it awarded the franchise to Stagecoach. Surely one merit of this situation should be that failing franchise holders should not be allowed to bid for future franchises. Does the Secretary of State agree that this gives us the opportunity to put the franchise into the public sector, allow further public sector involvement across all franchises, and review and improve the franchise tender process?
Chris Grayling
We certainly keep the franchise process under continual review to work to improve it but, as I said a moment ago, a public railway is not the panacea that everyone on the Opposition Benches claims it is. I intend to do two things: to take the right decisions for the taxpayer and the travelling public on that route, which is really important, and to act within the law, which is also important.
Andy McDonald (Middlesbrough) (Lab)
On Monday, the chief executive of Stagecoach said that he knew there was a problem with the east coast franchise’s finances just weeks after taking over the contract in March 2015, and that he had been talking to the Department about it for two years. Given that the Department was in dialogue with the operator about the difficulties, why did the Secretary of State not put together a contingency plan for the route? The Secretary of State has had two years to sort out this mess; is it not simply incredible that he still does not know what to do?
Chris Grayling
The shadow Secretary of State clearly cannot do his sums, because I have not been Secretary of State for two years. We have been planning—
Chris Grayling
I have been Secretary of State for 18 months; the shadow Secretary of State cannot do his sums. Since I became aware that there was a problem on the east coast route, we have been doing careful contingency planning, so we have a long-term plan and short-term options for the route. We cannot put those short-term options into place until the appropriate moment arises at which they are necessary. We are prepared for when that moment arises and will deliver the alternatives.
Andy McDonald
Given that the taxpayer has already lost out on more than £2 billion of premium payments, can the Secretary of State advise the House as to whether the financial ramifications of the termination of the franchise are now completely known and concluded? If not, what sums of money are earmarked to settle any further system-gaming demands from Messrs Branson and Souter through litigation or arbitration?
Chris Grayling
Again, the Labour party cannot do its sums. We have no more written off £2 billion than Labour wrote off £1.4 billion when National Express collapsed. The reality is that the east coast is and always has been in recent times a profitable railway. Whatever happens, it will continue to generate a substantial return for the taxpayer. It is about time that Labour did its sums properly, rather than misrepresenting the reality.
Jack Brereton (Stoke-on-Trent South) (Con)
Damian Green (Ashford) (Con)
The Secretary of State for Transport (Chris Grayling)
As my right hon. Friend knows, I have asked Highways England to progress plans to promote a lorry holding area through the normal planning process as a potential permanent solution to Operation Stack. Highways England intends to undertake an initial public consultation on this in the spring, which will consider the scope, scale and function of the lorry area. As he knows, I am frustrated that we have not been able to do this sooner, but the commitment to it is strong.
Damian Green
The Secretary of State is, I know, aware of the extreme urgency of finding a solution to this matter. Even if we assume a full implementation period after Brexit, we could be less than two years away from new customs arrangements at Dover, and problems there could be disastrous not just for roads across Kent, but for the national road haulage industry. Can he assure us that, by the time of Brexit, sufficient off-road parking spaces will be available to avoid a recurrence of Operation Stack?
Chris Grayling
There are two points that I should make. First, on the border, it is absolutely the intent of this Government to maintain a free-flowing border; that is of paramount importance. The other point, be absolutely clear, is that we will have a solution in place for next March which keeps the M20 flowing in both directions and provides a solution if there is congestion at the ports; and that we intend to move beyond that and deliver a long-term solution, which will not only deal with the issue of trouble at the ports, but provide some respite to Kent residents, who I know are fed up with having lorries simply parking on their local roads.
Stephen Timms (East Ham) (Lab)
Eighty per cent. of the road freight to and from the UK goes through Dover. There is surely no realistic chance of all those lorries being checked from March next year. Is not the reality that, if we leave the EU without a deal, utter chaos on the road network within miles of Dover is completely unavoidable?
Chris Grayling
No, I do not think that at all. It is for this country to decide how we manage our borders and what checks we put in place. The Government are absolutely committed to ensuring that there is a free-flowing border at Dover, and we will deliver that.
Patrick Grady (Glasgow North) (SNP)
Is it the Department’s policy that a new fixed link across the channel would help to ease disruption?
Chris Grayling
We should have some big, bold visions for the future. That is the way that we plan properly in transport terms. Our big, bold visions for the country right now are HS2, the potential expansion of Heathrow airport, the lower Thames crossing, the trans-Pennine tunnel, the A303 dualling and the Stonehenge tunnel. This Government have and are delivering lots of big visions for Britain.
Karl Turner (Kingston upon Hull East) (Lab)
The chairman of Maritime UK has said that, if a deal is not reached on Brexit, lorry drivers could be stuck on the main roads to Dover for up to two days. Even if a deal is reached, with a hard border at vital ferry ports, the industry is warning that customs and port health checks will cause massive disruptions. What concrete assurances can the Secretary of State give us that that will not be the case?
Chris Grayling
As I have said before, I have regular dialogue with the haulage industry and the ports sector. I have been very clear to them, as I am being clear in this House today and as the Prime Minister has made clear, that we do not intend to impose a fixed border. We want a free-flowing border and that is what we will deliver.
Clive Efford (Eltham) (Lab)
The Secretary of State for Transport (Chris Grayling)
All franchise operators are required to obtain a pre-qualification passport. The Department may suspend or withdraw a passport in the event that the passport holder triggers certain requirements within the passport application. This would place restrictions on or remove the passport holder from bidding for franchise competitions.
Clive Efford
I take it from that answer that it is possible for the Secretary of State to deny an existing franchise holder the right to rebid in a new tendering process. Govia, which has had the south eastern franchise for a long time, has consistently been a poor performer, so can he remove Govia from the service? If it were to get the franchise, what guarantees can he give to my constituents that they will get the improved service that they deserve?
Chris Grayling
In the case of the south eastern franchise, we will accept the bid that is going to deliver the best possible outcome for the hon. Gentleman’s constituents, with longer trains and better services. This is a competitive process. I will not hesitate to remove a passport from a firm when that is required. I also have to operate within European procurement law—something that the Labour party is still very keen on—and that requires me to take a proportionate approach. I will always seek to do that and I will always seek to operate within the law.
Tim Loughton (East Worthing and Shoreham) (Con)
Last year, no fewer than 67 million rail journeys were cancelled or severely curtailed. I raised this matter with the Prime Minister yesterday. Most of the compensation paid by Network Rail was trousered by the train operating companies. When they bid to renew their franchises, will the way in which they have treated their passengers with compensation be a key consideration, as it should be?
Chris Grayling
My hon. Friend is absolutely right that we need to ensure that passengers get the compensation payments to which they are entitled. Of course, the compensation structure is much more complex and there are far more issues than those that have been highlighted in the media in recent days. I am very clear that the move that we are going through this year to provide digital ticketing across the whole network will make it much more straightforward to give passengers the compensation that they deserve and need, and enable them to do so simply, without having to fill out long, complicated forms.
Rachael Maskell (York Central) (Lab/Co-op)
The estimates report was very revealing, showing how hundreds of millions of pounds have been spent on compensation, underwriting failure and bail-outs. In control period 4 alone, a staggering £339.4 million of public money—our constituents’ money—was handed over to private operators, while passengers were forced to pay over the odds to travel. How much more public money will the Secretary of State pass to these failed rail operators?
Chris Grayling
The Opposition keep talking about the huge amounts that are paid, but they fail to understand that less than £3 in every £100 that is spent on the railways remains with the companies. The rest is going into the biggest infrastructure investment programme, better services and newer trains—the kind of improvements that people could only dream of in 13 years of Labour Government, but which they are getting under a Conservative Government.
Rachael Maskell
That is certainly no apology to our constituents. The Secretary of State’s lack of due diligence has caused chief exec David Brown, of embattled Southern rail fame, to announce that he has done a—expletive deleted—good job, and that he will bid again for the next franchise contracts. Virgin and Stagecoach will do the same. These companies are on a huge gravy train at the expense of taxpayers, so why is the Secretary of State being held to ransom and why he is even prepared to consider rewarding their failure?
Chris Grayling
The hon. Lady talks about a privatised gravy train. I would encourage her to look at the conversation that the French Prime Minister had about a state railway, where he said:
“The dilapidated network, delays, abysmal debt…The situation is alarming, not to say untenable. The French, whether they take the train or not, pay more and more for a public service that works less and less well”.
I would say to her constituents that I am delighted that over the next 12 to 18 months the people of York are going to see every single train, pretty much, that serves their station replaced as new, or brand new trains—trains that they have not seen for decades.
Luke Graham (Ochil and South Perthshire) (Con)
During the franchise process, business cases get a lot of focus. The hon. Member for Middlesbrough (Andy McDonald) mentioned the Virgin Trains east coast contract and the franchise holder criticising some of the figures he had been passed. As a member of the Public Accounts Committee who was present at that hearing, I can say that the franchise holder actually said that, although the figures were not what he was expecting, they were not an insurmountable barrier to the franchise working. He quoted the Scottish referendum and Brexit, and a declining trend in passenger figures, as the real reason why the franchise failed. When franchises across the companies are being bid for, will my right hon. Friend encourage those companies to have a broader range of dynamic scenario planning so that they get accurate figures?
Chris Grayling
My hon. Friend makes a very important point. We are now migrating the franchise system to being much more focused on quality. The quality of service is going to drive revenues as much as anything else. People will see a very different approach where we do not necessarily take the highest bid, we look for high quality in the bids, and we look to be prudent about the risk-sharing mechanisms so that hopefully this does not happen again.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
Sir Henry Bellingham (North West Norfolk) (Con)
The Secretary of State for Transport (Chris Grayling)
Briefly, let me inform the House that the Space Bill has completed its passage through Parliament, and I extend my thanks to all Members involved in the debate. That debate was conducted in good humour by Members from across the House, and we all share the aspiration for this Bill to pave the way for a thriving commercial space sector in the United Kingdom.
Sir Henry Bellingham
Is the Secretary of State aware that Network Rail and Govia Thameslink have committed to ensuring that eight-carriage trains are introduced between Cambridge and King’s Lynn by the end of the year, which is vital to relieving unacceptable levels of congestion? Will he help to ensure that that commitment is honoured?
Chris Grayling
I will certainly do that, and I also recommit to the improvements needed in Ely, which are essential over the next control period to unlocking those capacity improvements that are needed for the growth and development of those parts of Cambridgeshire.
Dr Rupa Huq (Ealing Central and Acton) (Lab)
Jeremy Quin (Horsham) (Con)
Chris Grayling
Let me say very clearly and unequivocally that what took place last Sunday was unacceptable. On behalf of the Government, I apologise for it and the company has already done so. We have made our views known to the company in the strongest possible terms. It was unacceptable and lessons have to be learned. The company is putting in place arrangements to make sure people receive appropriate financial compensation. It must not happen again.
Siobhain McDonagh (Mitcham and Morden) (Lab)
Jack Brereton (Stoke-on-Trent South) (Con)
Chris Grayling
First, I want to put on the record again my commitment to making sure that Stoke is in receipt of an HS2 service when the route opens. The local authority’s plans for Stoke station are very exciting and I want to work on them with my hon. Friend and the local authority.
Tony Lloyd (Rochdale) (Lab)
Chris Grayling
I know that these works have taken longer than intended. I have spoken to Highways England and we want to get this situation resolved as quickly as possible. It is certainly the case—I speak as somebody who travels from time to time to Old Trafford—that the area is surrounded by roadworks on the motorway and the work on the new extension to the Metrolink. I hope the hon. Gentleman will acknowledge, however, that this is a sign that the Government are making sure there is investment in, and resource provided to, Manchester, where transport investment on this scale has not happened for a long time.
Johnny Mercer (Plymouth, Moor View) (Con)
My right hon. Friend will know from our many previous conversations that the people of Plymouth have waited too long to see improvements on their rail link, so I am grateful for his Department’s response yesterday, but when can they expect to see something delivered—some work completed—on Dawlish, which I know is his No. 1 responsibility?
Peter Kyle (Hove) (Lab)
Thank you so much, Mr Speaker. There is one set of tracks and one franchise operator between London and Brighton, but there are three separate pricing structures. I urge the Secretary of State and the Rail Minister to think about implementing the Gibb recommendation to lower the pricing to the lowest possible one—the Thameslink one—for a two-year period. That could be done with no technical changes whatever, and it would have a transformative impact on passengers who have suffered so much in the last few years.
Chris Grayling
We are working our way through the recommendations of the Gibb report, and we are working our way through the automation of ticketing, which I think is a prerequisite of the broader fares reform that is necessary. The hon. Gentleman will be aware that the keyGo card has just launched across the Govia Thameslink Railway network, and that smart ticketing is progressing. That will provide the opportunity for fares reform in a way that has not been there previously.
Rachel Maclean (Redditch) (Con)
During the recent appalling weather, Worcestershire County Council has been sharing information about where the nearest grit bin can be found, and getting the gritters out on the road. Will the Secretary of State join me in praising them for helping residents to prepare for the recent appalling conditions?
Ian C. Lucas (Wrexham) (Lab)
The Secretary of State will be aware that no money was spent in control period 5 on supporting enhancements to the rail infrastructure in north Wales. Having seen the unanimity in north Wales and in north-west England on Monday this week, does he not accept that our time has come for cross-border rail investment?
Chris Grayling
As the hon. Gentleman knows, I went to that event and made a commitment. I praise my right hon. Friend the Member for Clwyd West (Mr Jones) for bringing the event together and thank all the Members from north Wales who attended. I gave a clear indication of the Government’s sympathy with the need for the Crewe hub. I talked about the re-signalling on parts of the route, which will improve performance on the line. The hon. Gentleman will be aware, as the Member of Parliament for Wrexham, that we are now carrying out the study on how we deliver a proper service on the Wrexham to Bidston line. Under this Government, the time has certainly come for transport improvements.
Peter Aldous (Waveney) (Con)
BACT—Beccles and Bungay area community transport—plays a key strategic role in north Suffolk in serving remote rural areas and many vulnerable people. Will the Minister assure me that in assessing the feedback from his current consultation, his No. 1 objective will be to put the future of organisations such as BACT on a sustainable, long-term financial footing?
Chris Grayling
The A40 is one of the roads that could benefit from the creation of the major roads network. It is precisely designed to deal with those second-tier roads that were detrunked by the last Labour Government and tend to fall through the cracks between decision making in local communities and the national work done on the strategic road network. My expectation is that my hon. Friend and his local authority will be beating a path to my door when that funding is first released. However, I would say that his railway line is getting new trains much sooner than that, which I hope will be a benefit to his constituents.
Bill Esterson (Sefton Central) (Lab)
Ministers say that they want to reduce roadside emissions. The road leading from the port of Liverpool has some of the biggest air quality problems in the country. Will the Secretary of State listen to calls for investment in rail freight as an answer to the problem?
Chris Grayling
This is precisely why I am so pleased to have started feasibility work on the reopening of the Skipton to Colne railway line, a route that could provide an important link across the Pennines. It is no doubt a matter of real frustration that it takes eight to nine hours for a freight train to travel from the port of Liverpool to the power station at Drax, and it is clear to me that we need additional transpennine capacity. This is one route that could deliver it. I look forward to seeing the conclusions from that study at the end of the year, which I think is the likely timetable.
Robert Neill (Bromley and Chislehurst) (Con)
This week of all weeks, rail passengers want up-to-date information about delays and cancellations, but Southeastern’s website has failed to provide any live-time updates in any single rush hour this week, today included. Will Ministers bear that in mind when the franchise comes up for renewal?
Mrs Emma Lewell-Buck (South Shields) (Lab)
My constituent Jim Irvine, who was active all his life, now suffers from motor neurone disease, and, like many other people, relies on his mobility scooter for independence. Scooters are currently banned from the Tyne and Wear metro. What will the Secretary of State do to remedy the situation, and will he give assurances that our promised new rolling stock will include provision for mobility scooters?
Chris Grayling
As the hon. Lady says, it is time that we had new rolling stock on the Newcastle-upon-Tyne metro. I expect to see updated, modern rolling stock that can provide proper accessibility for people with disabilities. The decision about the configuration will of course be made locally, but I certainly expect the money that is available to be spent on disability-compliant rolling stock.
Jeremy Lefroy (Stafford) (Con)
Will my right hon. Friend give us an update on the progress of the negotiations on air connections with the European Union after we leave in March next year?
Chris Grayling
The European Commission has published its negotiating position on aviation links. There have been a lot of scare stories around over the last few months, but the Commission has said that in all circumstances—whether or not we have a trade deal, and whether or not we have an implementation period—there must be an aviation agreement. There is a recognition on the Commission’s side that the flights need to continue, and there is an absolute commitment on our side. I met my Spanish counterpart yesterday, and we agreed that it was essential for flights to continue. We will all work to ensure that there is absolutely no interruption in services.
Luke Pollard (Plymouth, Sutton and Devonport) (Lab/Co-op)
Does the Secretary of State understand the severe disappointment and anger in the far south-west about the sham of a south-west rail strategy that was published yesterday? Will he now do the right thing, and, instead of re-spinning the £50 million that has already been announced, match Labour’s £2.5 billion rail investment plan for the south-west?
Chris Grayling
I will take no lessons from the party that did nothing for transport in the south-west over a long period. This Government are doing things that Labour never did—dualling the A303, providing brand-new trains, and resignalling in Cornwall to increase the number of rail services. The hon. Gentleman should be embarrassed about his party’s record.
Several hon. Members rose—
Points of Order
Lord Grayling Excerpts(6 years, 9 months ago)
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Mr Speaker
I am very grateful to the hon. Lady for her point of order and for her courtesy in giving me advance notice that she wished to raise this issue.
What I would say—and it is very commonplace for me to get points of order of this type—is that I understand her concern to achieve a meeting with Ministers on a matter which is of importance to her constituents. Clearly, she had that prior commitment. It is customary, but not to be guaranteed, that a commitment by a Minister will tend to be honoured by his or her successor. While I would hope that Ministers would be even-handed in their response to Back-Bench Members on both sides of the House, I have nevertheless to say to the hon. Lady that it is not for me to tell Ministers whom they should meet; it is for an incoming Minister to decide whether to continue with a meeting arranged by his or her predecessor.
If a Minister goes to an area and is principally concerned to have what would be called a political meeting with members of his or her party, that may be exceptionally irritating to a Member who is not a member of that party, but it is not, of itself, illegitimate. There is no bar on Ministers undertaking party political activity alongside their ministerial duties.
All that said, I think that this place works best when there is a basic courtesy and respect from one Member to another. The hon. Member for Blackpool North and Cleveleys (Paul Maynard), who was previously the serving Minister, has always struck me as a most courteous fellow, but, looking at the Treasury Bench, I have known the Secretary of State for at least two decades, and we have always enjoyed very cordial relations—he is a most courteous chap. As for the hon. Member for Orpington (Joseph Johnson), well, I think my cup runneth over—the hon. Gentleman is personable to a fault. I cannot understand why neither of them is willing to meet the hon. Lady—I would have thought that they would think it a most worthwhile enterprise.
Mr Speaker
It looks as though an explanation is in the offing, because the Secretary of State is perched like a panther ready to pounce. Let us hear from the fella.
Chris Grayling
Mr Speaker, as you know, I am regularly around this House. I am sure there will be plenty of opportunities for the hon. Lady to tap me on the shoulder and say, “Would it be possible to have a meeting? There has been a reshuffle.” I would be delighted to organise a meeting with the Department. However, what I cannot offer her is a commitment that, when I attend a meeting with Conservative councillors in a constituency, I will invite the Member from the neighbouring constituency at the same time. I am afraid that that issue is completely separate, but I am very happy to ensure that she has a meeting with Ministers.
Rail Update
Lord Grayling Excerpts(6 years, 9 months ago)
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The Secretary of State for Transport (Chris Grayling)
With your consent, Mr Speaker, I will make a statement on rail franchising. I apologise to the two Opposition Front-Bench spokespeople for the slightly late delivery of copies of the statement—the speed with which we took this afternoon’s urgent questions caught us all a bit by surprise.
I informed the House on 10 January that my Department was preparing contingency plans for running train services on the east coast main line in the event of the existing franchise failing. Despite delivering significant returns to the taxpayer and having some of the highest passenger satisfaction scores in the country, the lead operator of the franchise, Stagecoach, has been incurring significant losses. During that debate, I promised to return to the House to provide an update on the situation, and I am doing so today.
Since 2015, the franchise has met all its financial commitments to the taxpayer, returning nearly £1 billion to the public purse, but that has come at a substantial cost of nearly £200 million to Stagecoach. I have already informed the House that the franchise will, in due course, run out of money and will not last until 2020, but it has now been confirmed that the situation is much more urgent. It is now clear that the franchise will be able to continue in its current form for only a very small number of months and no more.
Last week, following detailed analysis, my Department issued the franchisee with notification that the franchise has breached a key financial covenant. It is important to make it clear to the House, and indeed to the public, that that will not affect the railway’s day-to-day operations. The business will continue to operate as usual, with no impact on services or staff on the east coast, but it does mean that in the very near future, I need to put in place a successor arrangement for operating the railway and to end the current contract.
Given the imminent financial pressure that the existing franchise is under, I am taking action now to protect passengers who depend on these train services and to ensure continued value for taxpayers’ money. Given the urgency of the situation, I would like to take this opportunity to update the House on my plans.
It is worth remembering that our franchising system, as a whole, has delivered great benefits to passengers. New private investment has totalled £6.4 billion over the past 11 years, passenger journeys on the rail network have more than doubled and the private sector is paying for new trains all around the country. There are those who want that to stop, because of a dogma that the state could run the railway better, but we see the fruits of private investment all around the network.
There has also been much misinformation about the franchise, so it is worth stressing again at the outset that, because payments to the Government have been subsidised by Stagecoach, the taxpayer has continued to profit financially from this franchise. Passenger satisfaction is high, and preparations are well under way to deliver state-of-the-art new trains on this railway.
The problem is very straightforward: Stagecoach got its numbers wrong. It overbid and it is now paying the price. Contrary to widespread speculation and rumour, no deal has been done on this railway, and I have not yet made a decision on the successor operator to run the east coast railway until the longer-term plans for the integration of track and train can begin in 2020. There is no question of anyone receiving a bail-out. Stagecoach will be held to all its contractual obligations in full. But, as the Brown review said five years ago, this is what we expect in a competitive franchise system: private businesses risk substantial amounts of their own capital, and if they fail to live up to their stretching targets, they lose out, not the taxpayer. For anyone who thinks that the nearly £200 million that Stagecoach will lose is insignificant, let me put it into context: the combined profit of every train operator in the country was only £271 million last year, and the loss equates to more than 20% of Stagecoach’s total market value. So this is a significant amount of money by any measure, and it should also act as a stark warning to any company tempted to overbid in future. Moreover, the franchising system has now been adjusted to deter further optimism when bidding.
The priority now is to ensure the continued smooth running of the east coast franchise for its passengers. I have therefore asked my officials to conduct a full appraisal of the options available to the Government to ensure continuity of service until we implement the east coast partnership on the route from 2020. My decision on which option to choose will be made in accordance with the key principles set out in the statement on how I use my rail franchising powers. These include: protecting the interests of passengers; preserving the interests of taxpayers by ensuring value for money; and supporting investment and improvement in the railway, including through the deployment of new inter-city express trains on the east coast line.
In order to inform this decision, the Department will assess the extent to which each option performs against those principles. Our value-for-money assessment will be based on a number of criteria, including which option returns most money to the taxpayer, the risks attached to each, and the value of any improvements in passenger services. I will also have regard to the effect of my decision on other franchises. The decision will be taken in a transparent way; the Department’s assessment of the option will be published and it will be properly validated.
At this stage, one of the options is to consider the possibility of Stagecoach continuing to operate services on the east coast line under a very strictly designed short-term arrangement. The current management has a strong record of customer service and to rule out its involvement now would go against the principles I have outlined. However, given the circumstances in which the Government are having to step in to protect passengers on this line, I am prepared to consider that option only on the basis that the franchise would be operated on a short-term, not-for-profit basis. The only acceptable financial reward for Stagecoach could be received at the end of the contract—and only in return for the delivery of clearly specified passenger benefits and improvements. The company cannot be allowed to continue to run this franchise and simply make a profit, given what has happened. It got its sums wrong, and it will pay the price for that, not the taxpayer.
The second alternative is for the east coast franchise to be directly operated by the Department for Transport through an operator of last resort. My Department will subject that option to the same rigorous assessment to establish whether it would deliver value for money for taxpayers and protect the interests of passengers. This option is very much on the table and will be selected if the assessment that I have set out determines that it offers a better deal for passengers and taxpayers than the alternative.
In either scenario, the east coast main line is expected to deliver substantial revenue to the taxpayer. The line will also continue to deliver premium payments to the Government once the east coast partnership is in place in 2020. So let me be clear that the east coast franchise will continue to offer and deliver a healthy operating profit for taxpayers. It has done so over the course of this franchise so far and it will do so in future.
There will be those who claim that because Stagecoach overbid, it should be excluded from bidding for future franchises. I have to be clear that the legal advice on this is clear. As the company is meeting its financial obligations to support the franchise, including with the full parent company’s support, and because it has operated services on the east coast line successfully, the Department has concluded that there are no adequate legal grounds to restrict it from bidding on current and future franchise competitions on this basis. Members will understand that it is my duty to follow legal advice, but let me be clear that we will keep its eligibility for current and future bids under close scrutiny and constant review.
It is vital that we continue to focus our attention on delivering benefits for passengers across the network and on securing the genuine benefits of privatisation, so in addition to the transparent, rigorous process for the east coast line that I have set out, I am making some additional franchising announcements that will deliver benefits to passengers on the west coast and east midlands routes. In December 2016, we set out our plans to award the west coast partnership—the franchise that will deliver the first High Speed 2 passenger services. In that announcement, we made clear our intention to agree a short direct award with the current incumbent to allow the time necessary to design the west coast partnership. The negotiations have been completed and we have agreed a direct award with the existing operator, Virgin Trains west coast.
Let me be absolutely clear that the east coast and west coast franchises should not be confused. As with the east coast franchise, the west coast operator is meeting all its financial obligations, but the west coast franchise has a completely different corporate structure, in which Virgin Trains is the majority shareholder. As was set out 14 months ago, the direct award is a sensible bridge between the existing contract and the west coast partnership. Once that partnership is ready, the direct award will cease to exist.
Virgin has transformed the west coast franchise from a poorly performing service that required a subsidy of more than £75 million a year into a franchise that has one of the highest passenger satisfaction rates, at 91%, and which returns more than £200 million per year to the taxpayer. The transformation has included: the introduction of trains every 20 minutes between London and Manchester and between London and Birmingham, and hourly services between London and Scotland; the installation of wi-fi on every train; the lengthening of the Pendolinos to 11 carriages to accommodate growing passenger numbers; and the introduction of free at-seat entertainment services.
My decision is in keeping with the three key principles that I set out earlier: protecting passengers, ensuring value for money and supporting investment. I look forward to the release of the invitation to tender for the west coast partnership in due course and am confident that we will see strong competition for this exciting new franchise, which will help to transform rail travel in this country through to and including the delivery of the first HS2 services.
In the coming years, we will also transform the east midlands franchise, with the biggest investment in the midland main line since it was completed in 1870. Passengers will benefit from more seats, new trains and dramatically reduced journey times from Nottingham and Sheffield to London. Once the work is complete, there will be almost twice as many seats into London St Pancras during the peak compared with today.
The next operator will be required to deliver many of the improvements, so I shall set out today the next step of the competition that will award the contract. Abellio, Arriva, Stagecoach—the incumbent—and a joint venture between First and Trenitalia have all been shortlisted to run the east midlands franchise that will deliver improved services. As I have said, the Government have no adequate legal grounds to restrict Stagecoach from bidding, but the completion will be run on a fair and transparent basis, with new safeguards against over-bidding. Ultimately, the winner will be the firm that offers the best service to passengers and the best value to the taxpayer.
In a competitive market, franchises will sometimes fail. When that happens, my duty is to protect passengers and taxpayers, and to ensure continued investment in the railway. Stagecoach has paid the price for failure, as stipulated in its contract. Passengers on the east coast main line can be assured that services will continue as normal. The Government will undertake a transparent appraisal of the options available to ensure that passengers and taxpayers are protected.
I know that I will hear a lot about nationalising everything. It is worth remembering that, as we have heard today, renationalising our water companies would cost £90 billion. We have heard nothing about the cost of renationalising the railways—due to not just losing the private investment that is bringing in all those new trains, but the billions that would have to be spent to bring those trains back on to the public books. We remain committed to the success of a private railway. Over the past 20 years, passenger numbers have doubled. We have one of the safest railways in Europe, passenger satisfaction is high across the network and other countries are now adopting Britain’s model for running the railways. The plans I have set out will allow the British public to continue to benefit into the future from an ever-improving railway. We have challenges to meet, but we will meet them. I commend this statement to the House.
Mr Speaker
Order. Just before the Secretary of State responds to the shadow Secretary of State, I must say to the hon. Member for Kingston upon Hull East (Karl Turner), who, in his usual fashion, yelled, “It’s a disgrace,” from a sedentary position, that this morning I conducted my weekly Skype session with school students from the Education Centre. They were students of the Herne Bay primary school, one of whom asked me, “Mr Speaker, is there a Member who is particularly cheeky in terms of loud and repeated heckling?” I said, “Well, seeing as you ask, there is a chap called Karl Turner, who is a very agreeable fellow, but he does tend to go from nought to 60 in about five seconds.” I proceeded to educate the pupils of that primary school class in the favoured expressions of the hon. Gentleman—“Shocking” and “It’s a disgrace”—and his ritual exhortation, which fortunately I have not heard today to a Minister, to wit “be’ave”, which he makes while conspicuously failing to do so himself.
Chris Grayling
As we were caught short by the speed of the urgent questions, I know that the hon. Gentleman did not have as much time as he might have wished to prepare, but I am not sure that he listened to a word I was saying. He talked about a bail-out culture, gifts and standing up to people, but I have just announced that we will terminate a contract and that we may bring the operation of this railway back into the system of operator of last resort, which is, if I recall correctly, what Labour did in 2009.
I intend to ensure that I do what offers the best value for the taxpayer and the best option for the passenger at a time when exciting things are happening on this railway. New trains arriving in the coming months will transform the journey for passengers on the route, and that is long overdue. In the next control period, there will be investment in different parts of the route in order to improve performance in places where it is desperately overdue. The future is promising for the passengers on this railway, as they will have a better travel experience in the months to come.
The hon. Gentleman talked about long-term thinking, which is precisely what the east coast partnership is about. It is about unifying track and train in a way that I believe the public of this country want, and people on the railway believe that this will lead to a more efficient railway. The more that we can reunite the day-to-day operation of the track and trains right across the network, the more reliable a railway we will have.
Chris Grayling
The hon. Gentleman says from a sedentary position, “Nationalise it” but this country has done that before. It was called British Rail and it became a national laughing stock. Whatever else we may do, I have no intention of leading our railway system back into the days of British Rail, when lines were closed, routes were axed and the system received a lack of investment year on year because it was competing with schools and hospitals for the capital available. I have no intention of recreating British Rail, although Labour may do. I have a strategy that involves bringing together track and train, a long-term vision of investment, expanding our network and new trains. That is what passengers want.
Iain Stewart (Milton Keynes South) (Con)
The west coast main line is a vital railway service for my constituency. Virgin has indeed transformed that service over the duration of its franchise. Will my right hon. Friend say a little bit more about the duration of this direct award? What additional features can my constituents expect during that time?
Chris Grayling
My expectation is that it will last no more than two years—possibly only one year. It is important to get the west coast partnership structure in place to go through the bidding process, and we will shortly be issuing the invitation to tender. I can only reiterate that there is a clear corporate difference between the east coast main line, which is 90% owned by Stagecoach, and the west coast main line, which performs well and is majority owned by a different company, Virgin Trains. Whether the brand is used on both is neither here nor there; it is a different corporate entity. There is no possible legal benefit or passenger benefit from somehow ripping this up for an interim period, rather than moving seamlessly into the future and the path towards HS2.
Alan Brown (Kilmarnock and Loudoun) (SNP)
Despite what the Transport Secretary says, the franchising system is quite clearly not working, especially given today’s further announcement. When all these announcements are made, we keep hearing about the private investment that privatisation of the railways has brought in with the increasing passenger numbers. The reality is that all that new investment is paid for by the rail users. Sure, it might make the railways more attractive, but it is being paid for by those who use the railway. It is not magic money; it comes out of our pockets. It is quite clear that the parent company guarantee system is not working. If it were working properly, the east coast franchise would continue until the end, so there is clearly a failure in the system.
The Secretary of State did the usual bluster, but he mentioned water companies when he was talking about nationalisation. Well, I have news for him: in Scotland, the water company is a national company. It is owned by the public and operates successfully. The Scottish Government are also looking into a public sector rail bid, so these things can work. If the Transport Secretary’s defence is that Stagecoach got its sums wrong, what does that say about the Government’s due diligence on the tenders that were submitted? The fact is that the Government followed through and awarded the tender to a company that got its sums wrong. That is another reflection on his Department.
All this follows the west coast main line tender farce—the franchise deal collapsed in 2012, resulting in the direct award to Virgin, which is now going to get another direct award. There are way too many direct awards in the franchise system, and that kind of goes against the ethos of competition that a franchise is supposed to bring, which again highlights that the system is not working. What will be the duration of the next award and what impact will that have on the timescales for HS2? Will the Secretary of State give us accurate timescales for the HS2 tender process?
On the east coast and west coast awards, will the Secretary of State follow the Scottish Government’s lead? All employees on the ScotRail franchise are paid the real living wage, there are no compulsory redundancies and ScotRail is operating at a higher satisfaction level than the companies in the rest of the UK. For once, will he seriously consider the devolution of Network Rail to Scotland? That would save his Department money, take away some responsibility—given that it is a failing Department—and perhaps make up for a £600 million shortfall in maintenance monies allocated for the next control period in Scotland.
I have one final question. [Hon. Members: “Oh!”] How is the Secretary of State’s new railcard system working? What funding has been put in place for it? Does the inflation-level rise he has agreed cover the new railcard?
Mr Speaker
I do not know how long it seemed to the right hon. Gentleman, who is usually quite a patient fellow. Not everybody, I am afraid, is as succinct as the right hon. Gentleman, who has developed it into an art form, but the hon. Member for Kilmarnock and Loudoun (Alan Brown) must do better.
Chris Grayling
We are going to hear a lot today about the public versus private argument. What SNP Members, and indeed Labour Members, have not remembered is that if the investment has to come from the public sector, it competes with money for schools, hospitals and the armed forces. That means that, as happened in the days of British Rail, our rail network is starved of investment, and we saw the consequences. By contrast, the new trains that are shortly going to be arriving in Edinburgh Waverley and going up the east coast to Aberdeen are paid for by the private sector.
Chris Grayling
Of course they are paid for by the customers. The private companies make the investment and they make the return on that investment because the passengers pay for fares. That is the way that business works. Perhaps Labour Members do not understand the way that business works. Customers buy something they want to buy. I am absolutely certain that customers want to travel in brand-new trains. That is long overdue on the east coast main line, where they have regularly failed to do so. However, there are clearly lessons to learn on this. That is why we have moved much more towards a quality basis for new franchises. I want an increased quality of service delivered to be the basis for the allocation of new franchises.
The hon. Member for Kilmarnock and Loudoun (Alan Brown) asked about the west coast main line direct award. As I said, it will run for between one and two years. It will finish as soon as possible. I want this up and running. We are going to issue the ITT for the west coast partnership very shortly.
The hon. Gentleman raised the issue of staffing. The private sector-run east coast main line is today employing more people than it did in the public sector. As somebody who believes passionately that we need more customer service staff on the railway rather than fewer, I think that is a good thing.
The hon. Gentleman asked again about the devolution of Network Rail. I simply reiterate that I think that the SNP Government have quite enough to do without going beyond the devolution recommendations that we have put in place.
As regards the travelcard, it is being issued by the industry, which is moving ahead quickly with preparations for it.
John Penrose (Weston-super-Mare) (Con)
The last time the Secretary of State stood at the Dispatch Box, I asked him about open-access rail and competing rail firms. He rightly waxed lyrical about the benefits to customers in terms of choice and value that open-access rail can produce. As he looks at the options for the east coast main line, will he consider, in addition to the two options he has laid out for the House, an open-access alternative so that we can get away from the state-led and potentially even nationalised set of alternatives that we are otherwise being pushed towards?
Chris Grayling
I know that my hon. Friend feels very strongly about this. He is right about the benefits of open access. My view is that open access holds the existing operator’s feet to the customer service fire to make sure that it delivers. It would not be realistic to do this in timeframes available to me for making the change that we are going to need. However, I am very clear that the rules around the creation of the east coast partnership must and will leave room for open access.
Melanie Onn (Great Grimsby) (Lab)
The reason given for not providing residents of Grimsby and Cleethorpes on the east coast a direct service to London was the impact on Virgin’s profits. Will today’s announcement see any progress on a direct rail link line for my constituents, or perhaps a cut in the amount they are shelling out for their fares?
Chris Grayling
I very much hope and believe that we will be able to create opportunities for more direct services to east coast towns in the years ahead. There is no reason why this route cannot be used for further open access, if the Office of Rail Regulation judges that the capacity is there. It is very much down to the regulator to decide what is realistic and what is not. It is as much about whether it can be done logistically as anything to do with profitability. [Interruption.] The hon. Member for Middlesbrough (Andy McDonald) says, “Easy get-out.” There is only so much capacity available. I hope, however, that the investment going into the east coast main line during the next control period will free up additional train paths and additional capacity. Of course, when HS2 arrives it will create a complete step change for the east coast main line and allow for services to a whole range of new destinations.
Maggie Throup (Erewash) (Con)
With Stagecoach remaining on the shortlist for the East Midlands franchise, which serves my constituents, will my right hon. Friend keep the bid under review and revisit the legal advice he has received over the coming months?
Chris Grayling
I will be immensely careful about both the legal position and what is right for the midland main line. We will take the bid that will deliver the best outcome for passengers, and we will do so in a way that fulfils the legal advice. I am not interested in a second-rate solution for passengers. We will be providing much upgraded services and new trains, and the people who operate those new trains have to be the right ones.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
Is the Secretary of State aware that I am very disappointed he did not inform me he was attending a well-publicised meeting in the centre of Huddersfield in my constituency on Friday? He had the opportunity to talk to me and some of my constituents about the deterioration of the east coast line over recent years and the fact that not only the east coast line but the network across the north of England is a very great concern for my constituents who use it to get to work.
Chris Grayling
Just to reiterate, I did make sure that my office contacted the hon. Gentleman’s office on Friday morning to tell them I was going later in the day to meet Conservative councillors ahead of the council elections—an event that I would not normally invite him to. I was particularly struck by how thoughtful the Conservative team in Huddersfield is about the potential transport improvements for that area. It was a very valuable set of discussions.
Sir Desmond Swayne (New Forest West) (Con)
How good is Lord Adonis’s memory?
Chris Grayling
I am not a doctor, but I know that there is no record whatever of any ban on National Express continuing to bid for franchises after 2009. I am sure that the legal advice then was the legal advice I have now. Whatever one may say in public, the reality is that no legal constraint was placed on National Express from further bidding for franchises.
Dr Roberta Blackman-Woods (City of Durham) (Lab)
I think it is the Secretary of State who has the short memory, so I will remind him that this is the third time in 11 years that a private sector franchise on the east coast line has failed. Can he explain to the House why his Department prevented East Coast, a public company that ran the railway superbly for both passengers and the taxpayer, from bidding for this contract? Will he today commit to changing the rules so that public sector companies can bid for these franchises?
Chris Grayling
The key point to remember is that this is a franchise that has increased the number of services, increased the number of staff it employs, improved its passenger satisfaction rating and is providing a larger payment to the taxpayer, notwithstanding the troubles I have set out today. That, to me, suggests that it is getting something right. I want to be absolutely clear—[Interruption] Notwithstanding the sedentary comments, it is really important for me to pay tribute to the hard work of the staff who work on the east coast main line, who have done a good job in improving the quality of service for passengers. It is not their fault that their company got the financing of this wrong.
Luke Graham (Ochil and South Perthshire) (Con)
Can my right hon. Friend confirm that every penny of the £165 million guarantee that was insisted on in the franchise agreement will be reclaimed by the taxpayer?
Chris Grayling
Absolutely, and indeed, that has already happened. I am absolutely clear that Virgin-Stagecoach will fulfil this contract to the letter.
Chris Grayling
The shadow Secretary of State has failed to understand what I keep saying, which is that this railway every year continues to generate a substantial contribution to the taxpayer, and that will continue right the way through until 2023 and beyond.
Heidi Alexander (Lewisham East) (Lab)
May I ask the Transport Secretary for an update on station accessibility improvements? Hither Green in my constituency was due for a major upgrade in this control period, but that was kicked into the long grass by his predecessor. How much has been allocated for these improvement projects in the next control period, and will projects that were priorities last time around but lost out continue to be priorities?
Chris Grayling
There will be a continuation of the accessibility fund in the next control period. We have not decided exactly how much it will be, but I can give the hon. Lady an assurance that I will want to make sure that where commitments have been given in the past, we will seek to fulfil them in the next control period.
Robert Courts (Witney) (Con)
Will the Secretary of State confirm that privatisation has brought investment of £6.4 billion to our railways over the past 10 years, and that when awarding franchises both on the east coast main line and on the Cotswolds line—the GWR franchise, which is being consulted on at the moment—his guiding light will always be the quality of service provided to passengers?
Chris Grayling
This is now very much my approach. My view is that if the service is really good, revenues will follow. While it is absolutely essential that one seeks to achieve best value for the taxpayer in a bidding process, there is already a different balance between the amount of money bid and quality, and the balance will continue to evolve towards quality. That is what matters to passengers, and what drives revenues.
David Hanson (Delyn) (Lab)
If the Secretary of State rushed, he would just about get the 6.10 from Euston to Flint in north Wales, and it would cost him £283 for a return ticket. In the next two years of the direct award franchise for the west coast main line, does he expect prices to stabilise, or indeed fall?
Chris Grayling
The right hon. Gentleman is an astute Member of the House, and I have no doubt that he would have bought an advance ticket for a fraction of the sum he mentioned. Really good value is available on the west coast main line, although for those who turn up at the last minute—as, indeed, is the case with airlines and many other forms of transport—there is a higher price to pay. I believe that since the passenger numbers on the west coast main line continue to rise and services continue to be rated good, the current operators must be doing something right.
Alex Chalk (Cheltenham) (Con)
It seems clear that Stagecoach miscalculated, overbid and is now paying a £200 million price. Can anything more be done to avoid private sector companies overbidding and setting themselves up to fail, and can those lessons be learned in time for the GWR extension, which will affect my constituents in Cheltenham?
Chris Grayling
It is really important that we do so. We have in fact already changed the way the franchising structure works for the most recent franchise. The south-eastern franchise, which is out to tender at the moment, has a different approach to the issue of risk sharing. We have to be careful: on the one hand, we must seek to get best value from the franchises, but on the other hand, we need to make sure that they are resilient. It is a balance, and we have to try to get this right, but we are seeking to improve the balance between the risk to quality and the revenue we receive.
Paula Sherriff (Dewsbury) (Lab)
While the east coast main line was under public ownership between 2009 and 2015, passenger satisfaction, punctuality and reliability reached record high levels. Has the case not therefore been made for renationalisation based on these principles?
Chris Grayling
Except that since the line returned to being operated by Stagecoach, passenger satisfaction levels have risen, the number of employees has risen, the return to the taxpayer has risen and the number of services has risen. In my judgment, the day-to-day operation of this railway has proved very successful over the past two or three years, even though its finances have been disastrous.
Stephen Kerr (Stirling) (Con)
In my right hon. Friend’s statement, he said that the financial reward for Stagecoach at the end of its contract would be set on the basis of the achievement of “specified passenger benefits”. What does he have in mind?
Chris Grayling
I want continued improvements of the kinds committed to in the original franchise documents —better services, more services. If there is to be any payment at all at the end of this direct award, it has to be on the basis of an improved situation for passengers and better services. As far as I am concerned, this will be a not-for-profit award on a year-by-year basis if—if—we go down this route. Such a decision has not been taken, and I will not take it until I have seen the evidence on either side; and I will be completely transparent about it. Any payment at the end of a direct award has to be linked to a much better deal for passengers.
Tom Brake (Carshalton and Wallington) (LD)
Can the Secretary of State confirm that if any Virgin or Stagecoach directors receive any bonuses in relation to the east coast project, they will have them clawed back?
Chris Grayling
Given that the company has lost nearly £200 million over time and has, I believe, effectively wiped out all its profits from rail operations for the past four years, I would be extremely surprised if its management wanted to pay any bonuses at all. If they do, they will not be paid for by the taxpayer, but out of the company’s reserves, but I will be gobsmacked if they are paying bonuses on this at the moment.
Kevin Foster (Torbay) (Con)
I welcome the general tone of the Secretary of State’s statement, in particular the emphasis on Stagecoach taking the hit rather than the taxpayer. Can he tell me what lessons will be learned for the great western railway franchise from what has happened with the east coast franchise?
Chris Grayling
I am very clear that when the great western franchise is let, it has got to be based to a much greater degree on quality. As my hon. Friend will be aware, we are consulting on the possibility of having a separate south-western franchise. I am looking forward to hearing responses on that—I am open-minded about it—but I am clear that the next great western franchise has got to deliver better and more innovative services for people in the south-west. It is why, for example, we are now working with Great Western with a view to reintroducing a passenger service to Okehampton, which is something there is a clear opportunity for.
Tony Lloyd (Rochdale) (Lab)
The Secretary of State was very casual in dismissing the comment of my right hon. Friend the Member for Delyn (David Hanson). People who use the west coast main line feel that it is very expensive, because there is so little competition. During this period, when he has imposed a new contract, what will he do to guarantee that there is value for money and that we will not simply see ticket prices go up, when they should be going down?
Chris Grayling
All I can say, again, is that this railway line is well used and has seen an increase in passenger growth and customer satisfaction—it is the highest-rated railway in the country. I never want to see fares go up, but pay rises happen each year and there are costs to meet. Therefore, I am not offering a cut in fares, but we will operate a tight regime around the franchise to make sure it is not abused.
Mr Philip Hollobone (Kettering) (Con)
May I thank the Rail Minister for agreeing to meet the formidable Kettering rail users group this coming Wednesday in his office? They are going to bring with them constructive proposals for how the rail service to and from Kettering might be improved. May I urge the Secretary of State to recognise that Kettering is the most northerly junction from London between the Corby-to-St Pancras service and the midland main line itself? Thus, Kettering’s status during the next franchise should be enhanced.
Chris Grayling
Both my hon. Friend and the Kettering rail users group are powerful advocates for Kettering. I am sure they will be pleased by the investment going in. I was on the line the other day, and I could see all the engineering work taking place north and south of Kettering. There will be much better train links into London and, importantly, far more seats at peak times from Kettering, and we will be looking carefully at how we can ensure that passengers from Kettering have the best possible experience.
Lucy Powell (Manchester Central) (Lab/Co-op)
With the collapse of this contract and the collapse of Carillion recently, is this not a moment for us to be clear with the public that we are learning the lessons of these contracting exercises? People are coming in, overbidding or undercutting —or however one likes to put it—to kill off the competition and yet cannot afford to provide these public services. We need to be really clear with people that we have learnt the lessons and understand and that this will not happen going forward.
Chris Grayling
Actually, I absolutely agree with the hon. Lady. We do need to learn the lessons—that is absolutely clear. That is one reason why we have shifted much more clearly towards a different risk-based approach on current franchises and why we are moving towards a greater element of quality on current franchises. It is worth saying that the winning bid for the new south-western railway franchise was not the highest bid; it was the highest-quality bid. That is important. We can never militate against corporate failure. What has happened with Carillion has been tragic, but we took a lot of precautions on the rail network and HS2 to make sure there was not a significant impact if the worst happened, which it did; but, yes, of course lessons have to be learned.
Martin Vickers (Cleethorpes) (Con)
While privatisation has certainly resulted in more investment in the network, it is also clear that the existing franchise system needs reform. At the moment, we have competition for gaining the franchise, but very little competition in the actual provision of rail services. If we are to have improvements to services such as the direct service to Grimsby and Cleethorpes, which has already been referred to, we need to look again at the franchise system. Does my right hon. Friend have any plans for longer term reform?
Chris Grayling
We are looking at the way the franchise system works to try to make sure it is as effective as possible for the future. However, as I discovered, things I would like to do at a number of places on the network are constrained just by the limitations of what is there. My hon. Friend would be surprised by how often it is impossible to deliver a service improvement I would like to deliver, because, in the days of British Rail, a length of track was taken out, a station was closed or whatever. I would not want to go back to the days when services were being axed; I want to be part of a railway and a transport system that is actually expanding and growing, and that is our ambition.
Jenny Chapman (Darlington) (Lab)
On passenger satisfaction, is the Secretary of State aware that, this morning, every service on the east coast main line from my constituency to London was either delayed or cancelled? There is no competition on the line, and this is the third time the franchise has failed. Does he not understand that passengers and staff on the line just want certainty, and that is why they are keen on having a public sector body managing the franchise?
Chris Grayling
Of course, signalling is the responsibility of the public sector Network Rail, so there is a gentle suggestion that the hon. Lady’s proposal may not be the all-encompassing panacea. What our signalling needs is what we are giving it, which is £20 billion of investment over the next four years to renew infrastructure that is old and, in many places, worn out. We are still dealing with the years of under-investment before this Government took office.
David Linden
Thank you very much, Mr Speaker. You are far too kind.
The Secretary of State spoke in his statement about protecting the interests of passengers and taxpayers. When will he look at the example being taken forward in Scotland, where Scottish Government Minister Humza Yousaf has said he is minded to accept a public sector bid to run the railways? What is the Secretary of State’s objection to that? Is it ideology or just an obsession with corporate recklessness?
Chris Grayling
As I said earlier, my ideology is very straightforward: I want more investment in the railways, I want more trains and I want newer trains and new opportunities. Of course, the model the hon. Gentleman is articulating would mean less investment in the railways, because we would lose all the private investment in new trains, for example. I do not believe that that is what the public want.
Sir Edward Davey
Thank you, Mr Speaker—that was a difficult choice for you.
The Secretary of State has today acted when a franchiser overpaid, hitting its shareholders. Will he commit to the House that when a franchiser under-delivers, hitting the passengers, he will also act?
Chris Grayling
If a company is systematically failing to deliver, yes. However, in many cases—indeed, I suspect I know precisely what the right hon. Gentleman is talking about—the infrastructure is the problem, rather than the train company. I cannot blame one person for another person’s failings; what I can do is try to sort out the failings that lead to these problems in the first place. If we look at the Waterloo line, for example, where the problems last autumn were caused by a technical problem around the Waterloo works, which took about two months to get rid of, that is a good example of where Network Rail problems caused the issues. That is why we need that £20 billion investment in renewing those parts of the infrastructure that are too prone to fail.
Contingent Liability: Notification
Lord Grayling Excerpts(6 years, 9 months ago)
Written StatementsRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Secretary of State for Transport (Chris Grayling)
I have today laid before Parliament a departmental minute describing a Contingent Liability (CL) of £4 million associated with Solum JV.
Solum JV was created in 2008 to help Network Rail (NR) deliver its agreed housing target. Since its formation, the Solum JV has delivered over 200 housing units, has c.200 more under construction—to complete by 2021—and a pipeline of c.1500 further units, subject to planning and other approvals.
This counter-indemnity, for which NR’s CL of £4 million will be matched by its JV partner, Kier, will cover further multiple residential developments being built by the JV, initially at Twickenham and Walthamstow Phase 2 stations.
The Treasury has approved the proposal in principle. If, during the period of 14 parliamentary sitting days beginning on the date on which this minute was laid before the House, a Member signifies an objection by giving notice of a parliamentary question or a motion relating to the minute, or by otherwise raising the matter in the House, final approval will be withheld pending an examination of the objection.
[HCWS447]
High Speed Rail (West Midlands - Crewe) Bill
Lord Grayling ExcerptsTuesday 30th January 2018
(6 years, 9 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Secretary of State for Transport (Chris Grayling)
I beg to move, That the Bill be now read a Second time.
It is four years since my predecessor, my right hon. Friend the Member for Derbyshire Dales (Sir Patrick McLoughlin), stood at this Dispatch Box to seek powers for a new railway line between London and the north, the first new major railway line north of London for 120 years. At that time, it was simply a concept—an important one but one that seemed a long way off. We have come a long way since. In February 2017, Parliament granted powers to construct phase 1 of the scheme, from London to the west midlands, and works on part of this route have now begun. This project is now a developing reality. We came a step closer to an operating railway when we announced the shortlist of companies that will bid for the west coast partnership and design, launch and operate the early passenger services on HS2.
This vital new rail capacity project, under construction from London to Birmingham, is only the first part of the project. We need to deliver capacity to our northern cities and bring our country closer together. I am pleased to stand here today, therefore, to start the next phase of this vital project. Phase 2a extends HS2 from the west midlands to Crewe. The first stage of the new line, which will take the midlands engine through to the northern powerhouse, connecting the two together, will accelerate construction of the first section of phase 2 by six years and bring us a step closer to delivering a complete brand-new high-speed line all the way to Manchester. That is the importance of today’s debate. It is this link that will take the railway line towards Manchester—finally to one of our great cities and industrial centres of the north-west.
Jonathan Edwards (Carmarthen East and Dinefwr) (PC)
As the Secretary of State will be aware, the statement of funding policy that accompanied the last comprehensive spending review awarded to Wales a 0% Barnett consequential rating for HS2, whereas Scotland and Northern Ireland both had 100%. Unless he can assure the House that Wales will get a 100% rating in the next CSR, my colleagues and I will have no option but to vote against the Bill this evening.
Chris Grayling
If the House does not support the Bill, the Crewe hub and the links to north Wales that it will provide will be simply an illusion, so the hon. Gentleman and his colleagues would be doing down Wales, which would be surprising—though, of course, it is typically Conservative Members who are the real champions of Wales. We will continue to ensure we provide the right connections to Wales.
Dame Cheryl Gillan (Chesham and Amersham) (Con)
I thank the Secretary of State for giving way so early in his speech, and I ask him to forgive me as I may not be able to be here for its entirety because I have other duties outside the Chamber, but I hope to return. He says he is very proud of this new railway the Government are building, but can he explain why he is building a railway with old technology? Back in 2015, the Japanese beat all their records with a Maglev train, whereas we appear to be building something from the last century, not something for the future.
Chris Grayling
It is interesting. I have travelled on the Maglev line in development in Japan. It is a project that has a role to play in the Japanese transport system, but, having studied it at first hand, I do not believe it is the right project for this country, and nor do I believe it could deliver the level of capacity that HS2 will. HS2, of course, is a capacity project that brings with it speed, not the other way around, and that is what our transport system needs more than anything else. It is crucial, too, to the development of the north of England, which has a population of more than 15 million and over 1 million businesses, and which has exports worth upwards of £50 billion. The north of England makes a huge contribution to the success and prosperity of this country, but it needs strong and effective new transport links, and this project will be an important part of that, which is why it is so important to the whole UK.
Dame Cheryl Gillan
The Secretary of State says this is now about capacity, but please can he not change history? When this was first proposed, including the route through my constituency, it was all about speed; otherwise it would not have been allowed to travel on a route that will cause so much environmental damage.
Chris Grayling
My right hon. Friend will know that I have been consistent all the way through in talking about this as a capacity project. I know that she and I are on different sides of the argument, but, from the time I was shadow Transport Secretary a decade ago, I have always talked about this improvement in terms of capacity, and I will continue to do so, because that is the most important part of it. We can debate the rights and wrongs, but I believe it is a capacity project—the speed is a bonus. I do not believe in building something with old technology—we should have a state-of-the-art railway—but the big difference this will make will be to capacity.
Mrs Louise Ellman (Liverpool, Riverside) (Lab/Co-op)
I welcome the Bill, but I note that the Minister referred to connecting the west midlands to HS2. What about the northern powerhouse and Liverpool’s connection to the new high-speed line?
Chris Grayling
I did mention the northern powerhouse. In terms of Liverpool, which, as the hon. Lady knows, is a city I have great affection for, as we move beyond the Bill and develop northern powerhouse rail and integrate what needs to be done in the north with the north-south routes and HS2, I believe that all the great cities of the north—Liverpool, Manchester, Leeds, Newcastle, York, Hull—will benefit, as indeed will places further north, such as Carlisle and Scotland. I will come back to Scotland in a moment.
Sir Kevin Barron (Rother Valley) (Lab)
If that is the case and Ministers are concerned for the north, why has electrification between cities in the north been cancelled?
Chris Grayling
As I have said many times in the House, we are delivering a process of modernisation on the midland main line that will transform journey times and deliver much improved rolling stock and brand-new trains much sooner. Our proposed model will deliver the improvements people want in the early 2020s, which is sooner than any other project would have done.
Anna Soubry (Broxtowe) (Con)
I am grateful to the Secretary of State for giving way; he is being very generous so early in his speech. I agree with him: it is about capacity. We cannot have an effective, modern society unless we have capacity, and we have to have good infrastructure, which means connectivity. Would he therefore consider advancing the Government’s excellent plans for HS2 by bringing on the other piece of the Y to Leeds? I believe that people throughout the whole of the east midlands support HS2, and we want it as soon as possible, please, especially at Toton in Broxtowe.
Chris Grayling
I absolutely agree with my right hon. Friend. Toton is going to be a fantastic centre in the east midlands for commercial development—transport and residential—whose benefits will ripple out across the area and have a hugely positive effect on the whole of the east midlands. I understand her point. We are working as fast as we can to bring before the House the powers we need for the east midlands and Yorkshire leg. I want to get it right—there are sensitivities on the route, as she will know—and I have travelled much of the route myself and looked at the issues as and when they arrive. We will do everything we can to minimise the impact on residents—I understand that such major projects have a negative effect on some people—but I assure her that we will bring the measure for the rest of the route before the House as soon as we can.
I have talked a bit about the north. Let me now talk about Scotland, because I want it to benefit from HS2 on the day it opens. When the full Y network opens in 2033, HS2 trains will run seamlessly on to the west and east coast main lines from the network that is then built. My Department and Transport Scotland are working closely with Network Rail in looking at options that will go beyond HS2. We want to identify options for strong business cases that can improve journey times, capacity, resilience and reliability. Our ultimate ambition is for three-hour rail journeys between London and Scotland’s central belt—a further strengthening of the Union that we all hold so dear. That, I think, is the point: HS2 will be a transformative project for the entire United Kingdom, including the parts that it does not serve directly. The benefits in terms of job creation, business opportunity and technological development will be enormous for the whole country.
Andrew Jones (Harrogate and Knaresborough) (Con)
I strongly support the Bill, and agree with my right hon. Friend’s comments about capacity in our rail network and the positive impact that HS2 will have on our northern economy. Can he tell us a little more about the impact on job creation in the north and elsewhere outside London?
Chris Grayling
I pay tribute to my hon. Friend for the work that he has done on this project. He has been a very distinguished Transport Minister. He has not only made a major contribution to its development, but has been immensely sensitive in dealing with residents. He should take great credit for that.
The point about jobs is crucial. Our industrial strategy sets out a vision of a Britain that is confident and competitive, a global trading nation that is in charge of its own destiny, and HS2 can play a big part in that. Last year we announced which train builders were vying for the £2.75 billion to deliver Britain’s state-of-the-art high-speed trains. That investment alone will create many opportunities in this country.
I have said previously that during the procurement process, as we pick the organisations that will build these trains, it must be clear that they will have to leave a substantial skills and technology footprint in this country. We will not countenance trains being built in another part of the world, put on a ship and delivered to the UK, with no benefit at all to the UK itself. This project will have a lasting impact. Indeed, the whole construction of this railway will create jobs, careers, technologies and expertise that will last a new generation of engineers for a lifetime. That is another reason why it is so crucial.
Michelle Donelan (Chippenham) (Con)
Siemens in my constituency has been shortlisted to provide the signalling for HS2, and Chippenham hopes to benefit from the fact that 70% of the new jobs will be outside London. Does my right hon. Friend agree that this project has the potential to benefit the south-west as well?
Chris Grayling
My hon. Friend is right, and I am delighted that Siemens has been shortlisted for that work. I want as much of the work as possible to be done in the United Kingdom, so that we can develop that skills footprint, developing those young apprentices and developing the engineering skills that we need for the future. That must happen throughout the United Kingdom: south-west, north-east, Scotland, Northern Ireland, Wales, south-east, midlands, the north and East Anglia. I want to see jobs and opportunities for British businesses, and businesses based in Britain.
Sir Patrick McLoughlin (Derbyshire Dales) (Con)
Does my right hon. Friend agree that we have Crossrail as a model? It is being finalised this year, and will be operating next year. That project was built on the use of suppliers in the United Kingdom, and the spread of its supply network throughout the UK. Although it was a London project, many parts of the country have benefited from it. What HS2 is doing is the natural follow-through from what Crossrail did.
Chris Grayling
Absolutely. Crossrail may be a project for transport in London, but it is also a project for engineering and industry in the United Kingdom as a whole. It brings benefits to all parts of the United Kingdom, and HS2 will bring benefits to all parts of the United Kingdom. Northern Powerhouse Rail, when it is built, will bring benefits in southern as well as northern England, and, indeed, throughout the United Kingdom. The more that we invest in these projects, the more economic benefits we will deliver across the UK.
Michael Fabricant (Lichfield) (Con)
May I ask my right hon. Friend not to take his eye off a distant ball, which is the future of the west coast main line after HS2 is constructed? More than 44 stations on that line will not be served by HS2. It is very important for passenger traffic to be maintained on the west coast main line, and to ensure that it is not used just for freight traffic.
Chris Grayling
My hon. Friend is right. As one who has sailed through his local station many times, on Pendolino trains, I believe that we can and should do better at such intermediate stations. We should provide better commuter links to Birmingham and to towns such as Northampton and Milton Keynes, and we should provide better links within the Trent valley—from Nuneaton to Lichfield, and up to Stafford. We will be able to do all those things to a greater degree in the future. Yes, there will be a freight benefit. We all want a freight benefit, because we want fewer trucks on the M6 and the M1, but the fact is that we can do both. Creating that extra capacity on HS2, or via HS2, is, to my mind, its great benefit. It will of course be a fast, state-of-the-art railway, but first and foremost it is about giving our transport system the capacity that it will need to enable us to grow in the future.
I know that there are people for whom this project is bad news. There are people who are affected by the routes, many of whom are in my hon. Friend’s constituency. I genuinely wish it were possible—I am sure that Members in all parts of the House wish it were possible—to deliver infrastructure improvements like this without human consequences, but it is not possible. What we must do is try to treat those people decently.
HS2 has not always got it right, and we will not always get it right, but I give the House today an assurance that I have given it before: when an injustice is being done, we will do everything we can as a ministerial team to sort it out. Members need only come to us and say, “This is unfair”, and we will look at it. Indeed, I have already done so in places up and down the route, and I will continue to do so, particularly in respect of this part of the project. A number of constituencies on the route from the Trent valley up to Crewe are affected. As the two Ministers responsible, the Under-Secretary of State for Transport, my hon. Friend the Member for Wealden (Ms Ghani), and I will happily talk to colleagues during this process. There will, of course, be many opportunities for them to make representations about the impacts to the Committee, assuming that the Bill is given a Second Reading today.
Maggie Throup (Erewash) (Con)
I appreciate what my right hon. Friend is saying today. We have also had many conversations about the ways in which some of my constituents are affected. That has been going on since 2013. We may get there in the end with compensation and agreements, but the problem is that it takes so long—far too long for some people. Some of my constituents are very elderly, and some are quite ill. Can my right hon. Friend reassure me, and my constituents, that we can improve the process?
Chris Grayling
I absolutely give my hon. Friend that assurance. There are processes that we must rightly follow to protect public money, but there are exceptions that always step outside what is planned. Part of the job that we have, as Ministers, is to ensure that when those exceptions arise—and I know that there are two in my hon. Friend’s constituency, which she and I have been talking about—we must resolve them before we reach a point at which those people are suffering in their lives. We are a little bit of time away from the phase 2 Bill and the process involved in phase 2b. As I have said to my hon. Friend and to other Members, we will try to sort out those exceptions so that people do not suffer inappropriately. I will continue to work with my hon. Friend to try to resolve the situation.
Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)
While the Secretary of State is handing out assurances, may I, on behalf of the people of Stoke-on-Trent, ask for an assurance that the existing direct and frequent services from Stoke-on-Trent to London, Birmingham and Manchester on the west coast main line will in no way be diminished or reduced as a result of HS2 taking up some of the capacity through the classic compatible services?
Chris Grayling
As the hon. Gentleman will know—and I have given this assurance to my hon. Friend the Member for Stoke-on-Trent South (Jack Brereton)— I am acutely aware of the issues in Stoke-on-Trent. I want to ensure not only that the high-quality service that it deserves is protected, but that HS2 trains run through it, which is also what it deserves. I have given that clear commitment to the people of Stoke. I want them to have a first-rate rail service, and HS2 will make it possible for them to have an even better rail service than they have at present.
Let me say more about the affected communities. Last week we announced an additional £5 million for communities and businesses that are disrupted by the construction of phase 2a, which can be spent on public projects, community centres and so forth. That will add to what we have already committed in terms of the mitigation and compensation in place, and we will carry on looking at ways in which we can minimise the impact on local people and the areas affected.
Rebecca Pow (Taunton Deane) (Con)
I am totally in favour of the project, as train travel is environmentally friendly because it gets people out of their cars and on to trains. But will the Secretary of State reflect on the potential loss of ancient woodland because of HS2, and whether consideration might be given, where possible, to using tunnels so that we keep these wonderful, magnificent trees? We have only 2% of them left in the whole country. Will we consider doing this? If not, and if there is unavoidable loss, could we consider 30% amelioration, as recommended by Natural England, rather than the figures bandied about today?
Chris Grayling
I am very well aware of the potential impact on ancient woodland. We have already made changes to the design of the project to try to mitigate that impact, and there is an absolute commitment to look to plant afresh and to develop environmental measures to compensate for any loss of woodland. Also, there are some exciting potential projects on the route that can enhance the natural environment at the same time as we are having to make changes elsewhere. I assure my hon. Friend that we are very sensitive to the issue she mentions, and we will do our best to make this project in as environmentally friendly a way as possible. We cannot build something new like this across the whole country without having some impacts, but we can try to mitigate them and put money into positive alternatives. That is what we are committed to, and that is what we will do.
This is a step on the way towards creating a 21st century new rail network: phase 1 to Birmingham, phase 2a to Crewe, eventually phase 2b to Manchester and Leeds, and then across the top with Northern Powerhouse Rail, and then, through that, the connections to the north-east, which the shadow Secretary of State will hold dear, to Scotland—colleagues on both sides of the House representing Scottish constituencies are keen to see that connection put in place—and into north Wales through the Crewe hub that we are working on at the moment.
This project will provide the capacity our transport system needs in the 21st century. It will deliver better journey times and, particularly importantly, much better connections between our northern cities—Birmingham, Sheffield, Leeds—where there are poor connections at the moment; this will make a huge difference to them. But above all this is about making sure this country has a 21st century transport system. I hope the project commands support across the House. I know that some Members have issues both about the principles of the project and constituency impacts. To those with constituency impacts I simply say again that we will do our best to minimise those and to work as closely as possible with them to make sure that people who are affected are treated as decently as possible.
This Bill is enormously important to this House, to the future of this country, to our nation, to strengthening our Union, and to delivering economic growth across the whole country, and I very much hope that this House will give it its support today.
Andy McDonald
I am grateful to the hon. Gentleman for that intervention, and it is key that HS2 integrates. We have just heard words from the Secretary of State about the need to ensure that it does connect with our northern cities, but we are yet to see those plans unfurl. We have heard about Transport for the North’s aspirations, but this cannot be a stand-alone project; it is essential that it links into our great towns and cities throughout the nation.
Linking the great cities of the north and midlands is equally important and will bring much-needed economic benefits to those regions. Labour supports the nearly 30,000 jobs the construction of HS2 will deliver and the huge uplift it will give to apprenticeships and training, particularly outside London. It is not too early to consider how we will retain and develop those skills in the future in other infrastructure projects both at home and abroad. I would be interested in any comments the Secretary of State has on this point, particularly with regard to Northern Powerhouse Rail and Crossrail.
I also make a plea that we must not repeat the catastrophe of the Carillion experience with apprentices. Apprentices in my constituency are being left flapping in the wind, not knowing whether they are going to be paid. We hear today that their employment will come to an end at the end of this month. It is a disgrace that £6.5 million of public money has gone into an apprenticeship programme that leaves our apprentices short of their qualifications and without employment. The Government should intervene now to guarantee that those apprentices will receive that assurance from this Government today.
Chris Grayling
I am grateful to the shadow Secretary of State for giving way, and he and I share that view. I can assure him that, on the HS2 project, the apprentices who were employed by Carillion are migrating to work for Kier and those employed by Carillion have been moved on to the project with the other two partners. So not only should there be no hiatus in the work taking place, but, more importantly, the people on those projects are moving to different companies involved in them. There are obviously some very difficult circumstances elsewhere as a consequence of the collapse of Carillion, but I have been very keen with this project to make sure we have the seamless transition we contracted for last summer, and I am delighted to see the apprentices move on in a way that enables them to carry on with their apprenticeships.
Andy McDonald
I am grateful for that reassurance in the context of these projects, but I am particularly concerned about these apprentices in the here-and-now; there are 100 out of the 1,400 who have been prejudiced in my community and we want to see this Government respond by coming to the table and making sure those young people have a future. It is difficult enough to encourage people into these industries in the first instance without leaving them high and dry, as has happened on this occasion.
I welcome the commitments contained in HS2’s environmental principles. It is imperative that environmental standards and air quality are at the forefront of the project. Many of the arguments about why we need HS2, and why we do not, have been well rehearsed in this House over many years: passenger rail numbers have doubled since 1995; rail freight has grown by two thirds over the same period; and the existing network has been operating at full capacity for years. No amount of timetable-tinkering can change this; I trust that all Members are in agreement about that.
Although it is important to maintain our vital road network, there is an urgent need to secure modal shift across transport: we cannot build our way out of congestion on our roads, and we must be watchful about the sustainability of domestic air travel. In addition, we face the prospect of the population of Britain reaching 70 million by the end of the decade. So the question is: how are we going to move our people around our nation? It is no exaggeration to say that the very economic and social livelihood of this country is at stake. Our capacity to move people by rail and bus is therefore crucial.
Michael Fabricant
But the hon. Gentleman is thin, lithe and athletic. I am talking about a harried husband, a wife, squabbling children and loads of luggage. That is what I am talking about.
Chris Grayling
May I take my hon. Friend slightly closer to home, not perhaps in his own constituency, but alongside? Those people who seek to commute from Rugby, Coventry, Birmingham International and intermediate stations into Birmingham find that their daily journey is delayed by the fact that this line, which is two-track only and which can only be two-track, has express trains, local trains, intermediate trains to Northampton and even some freight trains on it. It is chaotic and jammed all the time. HS2 takes off the express trains and gives those people a better commute into Birmingham. Is that not something that the west midlands should champion?
Michael Fabricant
My right hon. Friend is absolutely right about that. I do not think that there is any argument about the capacity problem. It was he, or perhaps it was my right hon. Friend the Member for Derbyshire Dales, who said that the west coast main line is operating at 100% capacity and that it is the busiest line in Europe. In fact, it is a triumph in that people have moved on to those trains in their millions since the time when a Labour Government were in power, and certainly since the time of nationalisation—and we all remember those curling sandwiches. Of course there are advantages, too, but it could have been done in a much better way. It is not a connected service. What do we have now? The genesis of it all was Lord Adonis who, in 2007, came up with the idea of the route. I can tell Members that he was astonished when the Conservative Government accepted that route. Again, let me say very clearly that I am arguing not against HS2 itself, but against the way in which it is being executed. That is what I am criticising. Lord Adonis wanted an ultra-high-speed line. As a consequence, he got rulers on maps, drew straight lines, crashing through countryside, which had previously not been damaged, destroying ancient woodlands, and generally messing up the entire area.
Automated and Electric Vehicles Bill
Lord Grayling ExcerptsMonday 29th January 2018
(6 years, 9 months ago)
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The Secretary of State for Transport (Chris Grayling)
I beg to move, That the Bill be now read the Third Time.
I would like to take this opportunity to thank my right hon. Friend the Member for South Holland and The Deepings (Mr Hayes) for all his work and for the dedication he has shown to the Bill, including in his contribution tonight, which he made with customary good cheer. He brings great knowledge to the subject and I commend him for all that he has done. On Second Reading he referenced Henry Ford, who said:
“Coming together is a beginning; keeping together is progress; working together is success.”
He has certainly exemplified those sentiments in his work on the Bill.
I am grateful to all right hon. and hon. Members who have participated throughout the passage of the Bill, particularly in Committee. I thank the Committee’s Chairs, the hon. Member for West Bromwich West (Mr Bailey) and my hon. Friend the Member for Gainsborough (Sir Edward Leigh), for guiding the Bill skilfully through its scrutiny.
The Government are committed to maintaining the UK’s position as one of the best places to research and develop modern transport technologies, such as automated and electric vehicles. Despite our differences in this House, I think we all share that ambition. We have some fantastic automotive centres in this country—the hon. Member for Washington and Sunderland West (Mrs Hodgson) referred to one in the north-east, which I have visited and know is a fantastic plant. We all want to see the automotive sector grow and develop, and this is a fantastic opportunity for it to do so. The Bill is designed to help keep the UK ahead of the curve.
Automated vehicles will revolutionise the way we travel and deliver better journeys, making journeys safer and improving mobility for more road users. It is estimated that the market for autonomous vehicles will be worth £28 billion or more each year to the UK. The Government want to see fully self-driving cars, without a human operator, on UK roads by 2021, and I believe that is entirely realistic. The Bill sets the legislative groundwork for automated vehicle insurance. When you drive your car, Mr Deputy Speaker, it is you who is insured, not the vehicle. As a result of the Bill, in future the vehicle will equally be insured. That will give people confidence that they can purchase these vehicles and have the insurance cover they need.
We have plans for further ways in which we can take advantage of this groundbreaking technology, with amendments to existing legislation. For example, we are already holding an open consultation on the safe use of remote control parking systems—a form of advanced driver assistance technology that is becoming very visible and real now. We will be updating our world-leading code of practice for testing automated vehicles to allow developers to apply to test their vehicles in the UK. We will also be working with the Law Commission to set out proposals for a long-term regulatory framework for self-driving vehicles.
Richard Burden
I am sure that Members on both sides of the House share the enthusiasm for these new technologies, but has the Secretary of State seen KPMG’s “Autonomous Vehicles Readiness Index”, which compares the readiness of different countries for taking up these technologies? The UK performs fairly well on technology: we are ranked fifth, behind Germany, Sweden, the Netherlands and the United States. Interestingly, we drop to 10th place when it comes to readiness of infrastructure, the road system and the availability of 4G. Can he give any indication of how we can start to turn that around?
Chris Grayling
The hon. Gentleman makes a valid point. This legislation is part of the process of keeping us as close as possible to the top of that league table. Clearly the presence of 4G and 5G networks is immensely important. He will know that this week my right hon. Friend the Secretary of State for Digital, Culture, Media and Sport has talked about the Government’s achievements and ambitions for our broadband network and our 4G and 5G networks. It is absolutely essential, if we are to maximise this technology’s potential in the UK, that we have state-of-the-art IT systems. That is what the Government will continue to work towards.
To harness the revolution and take advantage of the potential of electric vehicles, we must continue to build the infrastructure they need. It needs to be ubiquitous and fast-charging, and this legislation will help secure that. Of course, that is backed by Government funding. In the Budget last November, the Chancellor announced a new £400 million electric vehicle charging infrastructure investment fund, £100 million of new funding for the plug-in car grant to help consumers purchase these vehicles, and of course we will play our part too by ensuring that 25% of cars in the central Government departmental fleet will be ultra low emission by the end of this Parliament. Through the Bill, we want to make it easier to recharge an electric vehicle, and that will be one of the consequences of what we have all debated today.
Alan Brown (Kilmarnock and Loudoun) (SNP)
The UK Government have committed £200 million towards the roll-out of infrastructure. Previously, the Secretary of State for Business, Energy and Industrial Strategy agreed with me that any allocation to Scotland has to be based on needs, including geography, rather than on population. Can the Transport Secretary confirm that he shares that view?
Chris Grayling
This has to be a United Kingdom-wide effort. Scotland is no different from the rest of the United Kingdom: it has rural areas, remote rural areas and busy urban areas. We will need to make sure that all those who seek to buy these vehicles have access to the appropriate charging points. This legislation will help to do that, as will Government funding. The Barnett consequentials of the Government funding announced in the Budget will enable the Scottish Government to play their part, along with private investment.
Taken together, the measures in the Bill will ensure that the UK is at the forefront of this profound technological shift. It will provide cleaner vehicles, easier travel and safer roads—all part of a transport system that works for everyone in this country, both today and in future. I am grateful to everyone who has been involved in working on the passage of the Bill. I hope that it makes a genuine difference. I am grateful to the whole House for uniting behind the Bill’s principles. Let us go forward and make sure that this country is a real success story in this field.
Oral Answers to Questions
Lord Grayling Excerpts(6 years, 10 months ago)
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Stephen Hammond (Wimbledon) (Con)
The Secretary of State for Transport (Chris Grayling)
The private sector has generated almost £6 billion of private investment over the past decade, providing new trains, upgrading stations and transforming the passenger experience.
Stephen Hammond
I thank my right hon. Friend for that answer. The irony will not be lost on him that public sector satisfaction in the railways is declining as Government influence is at its highest since rail privatisation. What discussions has his Department had with Network Rail to change procurement and design practices so that the private sector can have more influence in funding and financing future projects?
Chris Grayling
I want to see both. We have just announced the biggest investment programme in our railways—over the period 2019 to 2024—since the steam age, including £20 billion of renewals. That is crucial: one of the reasons why we talk at Question Time about train delays is that the infrastructure in many places desperately needs renewal, which is why we are spending £20 billion on that. It is also important that we bring in additional private finance alongside that public investment, and I have been discussing extensively with Network Rail how we can make that happen.
Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)
The private sector can only bring in investment if it knows what the Government’s plans for infrastructure are going to be. Will the Secretary of State tell me now what the latest Government position is on the electrification of the trans-Pennine line?
Chris Grayling
I have just received the proposals from Network Rail, and we are now reviewing them. My aim is to start this £3 billion upgrade within a matter of months. The project is due to really get under way next year. We are looking at all the different options but, as I have said, electrification will be part of the programme.
Sir Patrick McLoughlin (Derbyshire Dales) (Con)
Up until 1992, when the only investment in the railways came from the public sector, rail usage was declining. Since privatisation, we have seen a massive increase in the amount of people using the railways. Does my right hon. Friend agree that that is because of the changes that the private sector brought in?
Chris Grayling
I absolutely agree with my right hon. Friend. I do not understand the policy adopted by the Labour party. We are now seeing the construction of thousands of new carriages funded by the private sector, and we are getting rid of some of the legacy trains from the days of British Rail that were not up to scratch in those days and are certainly not up to scratch now. That is because private money is coming in alongside our investment programme.
Tony Lloyd (Rochdale) (Lab)
The real question for the Secretary of State is: does he have the political will to ensure that the money is available to invest in the northern rail system in this generation? Not jam tomorrow. Trains today.
Chris Grayling
The answer to that is clearly yes, because every single train in the north of England is being replaced or refurbished as new. All the old Pacer trains are going, and we are about to start the trans-Pennine upgrade, which will account for one third of the total funding available for enhancement on the railway between 2019 and 2024. That is a large investment programme that will make a difference to the north, and it is a sign of our commitment to the north.
Dame Cheryl Gillan (Chesham and Amersham) (Con)
Following the sad demise of Carillion, will the Secretary of State confirm that he is carrying out a full review of the HS2 project, including the business case, to ensure that the remaining private sector companies have the capacity to deliver the project without serious overruns and extra cost to the taxpayer?
Chris Grayling
My right hon. Friend will be relieved to know that the demise of Carillion, a tragic event for this country and for corporate Britain, will none the less not affect the HS2 project. The existing contract is part of a three-company consortium, and the other two companies, Kier and Eiffage, are taking over responsibility for the project. The apprenticeships are being transferred, the staff are being transferred and the project will continue uninterrupted.
Andy McDonald (Middlesbrough) (Lab)
On 17 July last year, the day on which Carillion was confirmed in the HS2 contract, I asked the Secretary of State about the financial instability of the company. He declared himself to be confident that the expected results would be delivered. Given the unfolding events of the last few days, has he now reflected and does he now accept that he got it spectacularly wrong and that his judgment and confidence were disastrously misplaced?
Chris Grayling
I do not accept that at all. The hon. Gentleman referred specifically to the HS2 contract. At the time, I reviewed those carrying out the contracting very carefully, and I have carried out due diligence since. As I said a moment ago, the HS2 project will not be affected by this, even to the point, I am pleased to say, that the apprentices working with Carillion on the project are being transferred to one of the other two partners. The work will continue uninterrupted. There is no delay and there are no cost implications.
Andy McDonald
On Monday, The Times newspaper said:
“The transport secretary’s decision to award lucrative contracts to an ailing Carillion is only the latest worrying misjudgment to come to light.”
It highlighted his trip to Qatar on the day of the biggest rail fare hike in five years, the notorious £2 billion east coast bail-out and his dysfunctional dealings with trade unions in the private sector, saying that the Prime Minister
“needs to consider whether it is time that this transport secretary left the station.”
Has not The Times got it absolutely right?
Chris Grayling
The only station that I am going to be leaving is Euston station for a visit to the midlands this morning. There has been no £2 billion bail-out of Virgin Trains East Coast. The contracting with Carillion was actually not with Carillion, but with a consortium of companies that are equally responsible for delivering the contract and will do so. I am happy to stand here to defend the record of a Government that have done more for our transport system than has happened in decades. That is in sharp contrast with what the Labour party did over 13 years in government, which was very little indeed.
Rebecca Pow (Taunton Deane) (Con)
The Secretary of State for Transport (Chris Grayling)
Figures for transport spend in the south-west show a significant increase—part of a pattern, Mr Speaker—totalling £1.7 billion in 2016-17 alone. That spend is helping to deliver a package of investment worth over £2 billion on the strategic road network in the south-west, as well as investing more than £400 million in the rail network.
Rebecca Pow
I very much welcome the commitment to funding for the notorious A358 in my constituency, and I am pleased that the Secretary of State and Highways England listened to local concerns and my calls for a new consultation, which opened just this week with three proposals. However, I would like an assurance that the upgrade will deliver not only strategically, but for local people and for productivity in Taunton.
Chris Grayling
This is an important matter. The A303 and the A358 are a crucial part of our investment programme in the west country, and they will open up a new corridor for people travelling down to the south-west, but they do have to work for my hon. Friend’s constituents and others in the region, particularly for the new employment area next to the motorway in her constituency. I assure her that I will continue to work with her to ensure that the projects delivers both for the region and nationally.
Dr David Drew (Stroud) (Lab/Co-op)
There is some evidence that trains from Paddington to Bristol and onwards are much better, less crowded and more reliable. However, people face delays and overcrowded and unreliable trains when getting from the south-west to the midlands. Will the Secretary of State put some funding into those lines?
Chris Grayling
I am aware of the particular congestion problems on the CrossCountry franchise. We will be re-letting the franchise shortly, and I want to see longer trains with more capacity for passengers. All of us who travel on CrossCountry trains from time to time know that they are too short for the loads they carry, and we need to find a way of sorting that out.
Alex Chalk (Cheltenham) (Con)
I echo the concerns about CrossCountry trains. Even outside of peak services, cramped trains are increasingly the norm for my constituents, who are jam-packed into vestibules, and that comes on top of delays and cancellations. Does my right hon. Friend agree that CrossCountry needs to raise its game?
Chris Grayling
I do agree. This is a question, as it is across the country, of ensuring that we have longer trains for the future. That is central to our strategy and is what the private sector is delivering for our railways, and it needs to happen on CrossCountry trains as well.
Jo Stevens (Cardiff Central) (Lab)
On funding, Cardiff Central station—the busiest in Wales—is in urgent need of redevelopment to accommodate expected passenger growth of 22 million in the next five years. This week, our Labour council and the Welsh Labour Government announced their funding contributions and the private sector funding, but the project can go ahead only if there is UK Government funding, too. When will the funding be confirmed?
Chris Grayling
The important thing about Cardiff Central station is that there is huge development taking place around the station. I have met the developers and local politicians, and I want to see there what I want in other parts of the rail network, which is a real integration of station development with commercial development. That should be an absolutely integral part of what is happening all around the station, not just in the station project in its own right, and that is what I want to happen.
Rehman Chishti (Gillingham and Rainham) (Con)
Tim Loughton (East Worthing and Shoreham) (Con)
The Secretary of State for Transport (Chris Grayling)
My hon. Friend knows full well that I absolutely understand the difficulties that his constituents have faced. I hope he will accept that performance has improved over the past year, since the height of industrial action. We have had compensation arrangements in place, including the special compensation for past disruption, which saw £13.6 million paid to 58,000 passengers. We have also taken steps forward on the ways to implement Delay Repay and will keep the situation under review.
Tim Loughton
On 2 December 2016, the Secretary of State said in a written statement:
“Southern passengers have suffered from unprecedented and sustained disruption to their journeys during 2016”,
and offered some very welcome compensation for season ticket holders. The problem is that Southern passengers suffered from unprecedented and sustained disruptions to their journeys during 2017 as well. In fact, the punctuality figures for the most recent quarter are even worse. When are my constituents going to be compensated this year?
Chris Grayling
As I said, additional compensation measures are in place now. The issues that network currently faces are all to do with the condition of the infrastructure. My hon. Friend will know that we have just announced two major closures to allow upgrade works to take place, and there is a substantial ongoing programme of investment in that route, which I hope will make a significant difference.
Mohammad Yasin (Bedford) (Lab)
Bedford commuters will lose their fast peak train services in May. Many now do not know how they will balance work with their childcare arrangements. Does the Minister agree that Stagecoach should compensate these people and rail users who, by the Government’s admission, have borne the pain of the changes to the rail network timetable?
Chris Grayling
I cannot promise—I wish I could—no change and no disruption as a result of major investment programmes. The hon. Gentleman will know that the combination of the upgrade to the midland main line and the Thameslink programme must mean, for an interim period, changes to services. There will in fact be more seats from Bedford in peak hours. Of course, many of the east midlands trains arriving at Bedford are already full, so I absolutely regret the fact that we have to inconvenience passengers, but we cannot upgrade and improve the network without taking some difficult decisions.
Liz McInnes (Heywood and Middleton) (Lab)
Patrick Grady (Glasgow North) (SNP)
The Secretary of State for Transport (Chris Grayling)
The Civil Aviation Authority keeps such matters under constant review and has today announced that it will be issuing class 1 medical certificates with a restriction to applicants wishing to become commercial pilots where this is required for safety purposes.
Patrick Grady
The Secretary of State will be aware of the case of my constituent who has been denied his commercial pilot’s licence on the ground that he is HIV-positive. I am not entirely sure what the Minister’s answer means, but I hope it means that he will meet the CAA and the European Aviation Safety Agency very soon to stop them passing the buck, and let this pilot fly.
Chris Grayling
To reassure the hon. Gentleman, my answer means that today the rules are being changed, and while I cannot give a certain outcome to an individual case, people who suffer from conditions that have made it difficult for them to become commercial pilots will find it easier to become commercial pilots, as the CAA takes—I think—a more sensible approach to this matter.
Priti Patel (Witham) (Con)
The Secretary of State for Transport (Chris Grayling)
I echo the comments of the hon. Member for Nottingham South (Lilian Greenwood) about the emergency services’ response last week. I pay tribute to all those who carried out works across the rail network over Christmas, giving up their Christmas holiday period for the investment programme.
I am proud to be from a party of opportunity. We are a party of opportunity that provided this country with its first woman Prime Minister. Today, we are the party that provides the first Muslim woman Minister to speak from the Government Dispatch Box—my hon. Friend the Member for Wealden (Ms Ghani). I congratulate her, and I am very proud to sit alongside her today.
Priti Patel
The Secretary of State will be aware that Essex adds over £35 billion to the economy; but our businesses that want to grow cannot grow, because of poor transport infrastructure. Will my right hon. Friend help those businesses by committing to back key projects such as the rail loop north of Witham, investment in the A12 and investment in the A120?
Chris Grayling
I absolutely understand the importance that my right hon. Friend places on transport links in Essex, which is why we are investing both in the county and across the country. Highways England is progressing the A12 improvements, which are now going through the consultation and design stages. On the railways, a number of improvements are required to the eastern main line, and the rail loop is one of those under consideration.
Judith Cummins (Bradford South) (Lab)
John Grogan (Keighley) (Lab)
Chris Grayling
There has been absolutely no change to any part of the terms of that franchise; as of today, there is absolutely no change. It is business as usual. I have set out in this House the challenges, but as of today, to be clear, nothing has changed—neither the service specification nor the contracts for franchise.
Mr Philip Hollobone (Kettering) (Con)
Will the rail Minister be kind enough to agree to meet the Kettering rail users group to discuss how rail services might be improved to and from Kettering?
Ronnie Cowan (Inverclyde) (SNP)
Chris Grayling
I absolutely understand the importance for the future of our maritime sector—of shipping goods by sea. Indeed, I recently had the pleasure of visiting Montrose port to see the important work that it does for the east of Scotland. I can assure the hon. Gentleman that the maritime sector, while often not the highest-profile sector in these questions, is enormously important to this country.
Luke Graham (Ochil and South Perthshire) (Con)
While many of us were enjoying our Christmas lunches, an army of Network Rail engineers were working hard making improvements and repairs across the country. Will the Secretary of State join me in congratulating them on their hard work and thanking them for it?
Chris Grayling
We often fail to appreciate the hidden army of people who support our transport system. Those who turned out over the Christmas period—with some extraordinary work was done—deserve all of our thanks. Whether it is the improvements in the north-west, the expansion of Liverpool Lime Street that has taken place over recent months or the extraordinary work at London Bridge, north and south we are seeing huge investment programmes that will make a difference to the passenger experience.
Sandy Martin (Ipswich) (Lab)
Neil Gray (Airdrie and Shotts) (SNP)
Chris Grayling
Since my appointment, in recent months I have had regular meetings with the US airlines and the US Federal Aviation Administration, and I have met and discussed these issues with my counterpart in the US Department of Transportation. We are making good progress with our successor arrangements for aviation after we have left the European Union.
Justine Greening (Putney) (Con)
On what evidence are the Government now pushing ahead with what I believe to be a flawed plan for expanding Heathrow? The updated national policy statement shows that it is more expensive, lower value, more congesting, noisier, and provides fewer connections. Will the Secretary of State meet me to discuss this?
Chris Grayling
I know how strongly my right hon. Friend feels about this. She and I have had many conversations about it and I know that we will carry on doing so. She and I, of course, do not share the same view—I believe that this project is strategically important for the United Kingdom—but I am happy to carry on discussing it with her.
Stephen Lloyd (Eastbourne) (LD)
Chris Grayling
The hon. Gentleman will know that his predecessor secured from me a commitment to allow the local authority to use funding allocated for the improvements to the A27 to review what the best options are east of Lewes. I wait to see the response of that work.
Jack Brereton (Stoke-on-Trent South) (Con)
With the initial consultation currently open on “Shaping the Future of England’s Strategic Roads”, will the Minister confirm that the Secretary of State will look closely at the vital upgrade of junction 15 of the M6, serving Stoke-on-Trent?
Christine Jardine (Edinburgh West) (LD)
Chris Grayling
We have two jobs to do for aviation post-Brexit. One is to conclude negotiations within the European Union, which will be part of the ongoing process of negotiating our successor arrangements, and the other is to negotiate successor agreements around the world. We are working on both those things right now.
John Penrose (Weston-super-Mare) (Con)
On the east coast main line, rather than taking us back to the bad old days of British Rail, as the Labour party’s renationalisation proposals would do, will the Secretary of State instead consider the Competition and Markets Authority’s recommendations for more on-track open access choice and competition, with the far better quality and cost of rail services that it says would result?
Chris Grayling
There is no doubt that open access makes a difference. I do not think for a moment that those who, for example, live in Sunderland, Middlesbrough or Bradford and have services from Grand Central would say anything other than that open access has been a good thing. That is the area in which the private sector has really made a difference, bringing services to the network that never existed in the days of nationalisation.
Jessica Morden (Newport East) (Lab)
With the Severn bridges at long last coming into public ownership on 8 January, will the Minister meet me to discuss the future operation of the bridges, including abolishing the tolls following the long local campaign?
Dame Cheryl Gillan (Chesham and Amersham) (Con)
At a recent meeting with senior HS2 personnel, they promised to provide all MPs along the route of HS2 with advance notice of construction works in their constituencies. They have not done this. Will the Secretary of State ensure that they keep their promises?
Chris Grayling
I absolutely will—no question. I expect HS2 to be good corporate citizens as it embarks on this huge construction project. If there are examples of its failing to do so, I invite all Members to come to me and the Under-Secretary of State for Transport, my hon. Friend the Member for Wealden (Ms Ghani), who will be leading within my team on HS2. We will want to make sure that, where it is humanly possible to do so, we do the right thing by all those on the route.
Dan Jarvis (Barnsley Central) (Lab)
What progress is being made on delivering bus franchising powers for elected Mayors?
Sir Patrick McLoughlin (Derbyshire Dales) (Con)
When can we expect a decision on the Transport and Works Act order application for the improvement of the Hope Valley line? The public inquiry was in May 2016 and it reported in November 2016, but so far the Department has been unable to say when we will get a decision.
Chris Grayling
I will seek to gee things along. The Hope Valley line, as my right hon. Friend will know, is one part of the package of proposals—some new lines, some upgraded lines—that Transport for the North has brought forward for the northern powerhouse rail. I will seek to make sure that that process is concluded as quickly as possible.
Nic Dakin (Scunthorpe) (Lab)
Will the Government work with businesses that supply renewable fuels to see what impact the renewable transport fuel obligation has on them, and will they continue to look to develop E10?
Kevin Brennan (Cardiff West) (Lab)
Has the Secretary of State had a chance to look at early-day motion 775 about taking musical instruments on to aeroplanes? In his coming discussions on aviation, will he take the opportunity to meet the Culture Secretary to talk about how we might solve this real problem for musicians?
Chris Grayling
An airline’s hand luggage policy is obviously a matter for the airline, but I am very happy to have a discussion with the hon. Gentleman about the issue. There may not be a simple solution, but I am always happy to talk to hon. Members about the challenges they face.
Bob Blackman (Harrow East) (Con)
I congratulate my hon. Friend the Member for Wealden (Ms Ghani) on her appointment. Following her review of station accessibility, will she look carefully at the hundreds of applications from residents in my constituency for improvements at Stanmore and Canons Park stations which have not been provided by Transport for London, but will I hope be provided by the Government?
Chris Elmore (Ogmore) (Lab)
The Minister may be aware that the level crossing in Pencoed in my constituency will now not be improved because of the cancellation of electrification, and that is causing access issues and considerable safety concerns. I made this request to the previous Minister, so will the new Minister now meet me, and a representative of Pencoed Town Council, to start the process of closing that level crossing and improving the highways around Pencoed?
Chris Grayling
Decisions on electrification do not and will not in any way impede safety improvements. We have announced a large amount of money over the next five years, and I am happy to see what we can do to move this issue on rapidly.
Mr Speaker
A very short question is required so, of course, I look in the direction of the right hon. Member for New Forest West (Sir Desmond Swayne).
Paul Blomfield (Sheffield Central) (Lab)
The environmental impact assessment of the Government’s decision not to electrify the Midland main line north of Kettering has revealed that 25 times more savings in carbon emissions would have been achieved with that electrification. If the Government are serious about their new commitment to the environment, will they think again about that decision?
Chris Grayling
I expect to see a transformation of technology on our railways over the coming years, with the introduction of different types of battery electric hybrid trains and hydrogen trains, and I see that as a priority. I want the first hydrogen train to operate on our rail network within a short period of time.
Rail Franchising
Lord Grayling Excerpts(6 years, 10 months ago)
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The Secretary of State for Transport (Chris Grayling)
I will not respond in detail until I make my speech, but it is important to put on record that this morning’s report had nothing to do with the Northern rail franchise. I hope the hon. Gentleman will confirm that to the House.
Andy McDonald
I will do that very thing. I will confirm that the damning report was about Thameslink, Southern and Great Northern, not Northern, and showed that that franchise has been appallingly managed.
The Secretary of State for Transport (Chris Grayling)
May I begin with the one thing on which we agree this afternoon? I thank the hon. Member for Middlesbrough (Andy McDonald) for his generous comments about my right hon. Friend the Member for South Holland and The Deepings (Mr Hayes), who has been a great servant of my Department and other Departments for a very long period. He has been on the Front Bench for 19 years, in government and in opposition. That is an epic career, and we all very much appreciate the work that he has done, particularly on legislation and on building bilateral discussions and so on, so I pay tribute to him for all that he did. I am grateful for the warm words from the hon. Member for Middlesbrough.
Apart from that, we have just heard about 25 minutes of complete nonsense from the Opposition. I suspect that you would say it would be unparliamentary of me to call them hypocritical, Madam Deputy Speaker, so I will not do so, but I have no doubt that others in the know will be astonished by the gall with which they simply forget their actions in government; with which they pretend that their ideas will not cost a penny—I keep hearing that, but it is absolutely untrue—and with which they make inaccurate claims based on a lack of facts about subjects they appear not to understand.
Let me set out why the Opposition’s ideas do not stack up and why their positions do not add up.
Chris Grayling
I will make some progress and then take interventions.
I shall also set out why the Opposition’s policies make no sense for the travelling public and why their pronouncements on the east coast main line are wrong. I shall also explain why it is this Government who have set about the task of modernising and upgrading our railways—the biggest programme of investment since the steam age—after 13 years of a Labour Government who quite simply failed to deliver the infrastructure improvements that this country needed. It has taken Conservatives to begin to change that.
Several hon. Members rose—
Chris Grayling
I will make some progress and then take a few interventions.
I do not like to see train fares rise. I particularly did not like, as a rail user of some 35 years, to see fares rise by nearly 20% in real terms during Labour’s years in office. I did not like, in those years, to see fares rise in cash terms by an average of 67%, so I am relieved that we have been able to limit the increase in train fares to just 2% in real terms since 2010, even while we invest billions in upgrading the network. That increase is still more than I would wish, but it is much, much less than the increases under Labour and much less—[Interruption.] The hon. Member for Middlesbrough was simply unwilling to answer the question that my hon. Friend the Member for Bexhill and Battle (Huw Merriman) correctly asked. Under Labour, fares rose much faster than they have under this Government.
That does not make it any easier for those who faced increases last week. I had hoped to be able to bring down the rate of increase from the higher retail prices index rate to the lower consumer prices index this year. That remains my goal, but there is a problem. The industry is locked into RPI and has been for years. The biggest barriers to change are the unions whose members’ pay amounts to almost a third of the costs of the industry. Currently their pay rises in line with or above RPI inflation every single year.
Stephen Lloyd (Eastbourne) (LD)
In a recent report, the head of the National Audit Office said:
“Some of the problems could have been avoided if the DfT had taken more care to consider the passengers in designing the rail franchise.”
Secretary of State, may I ask whether you recognise that statement, and do you apologise to the passengers?
Stephen Lloyd
Through the Chair, I would like to ask whether the Secretary of State recognises that severe criticism from the head of the NAO. Will he apologise on behalf of his Department to my constituents—rail passengers from Eastbourne—and passengers across the south-east?
Chris Grayling
I make no apologies for the huge investment programme in the Thameslink network, the massive expansion of London Bridge station, which has just been completed, and the introduction of brand-new 12-coach trains across the network. What I do apologise for is that we were not able to avoid the extraordinarily ill-judged actions of the trade unions, which caused massive trouble for passengers. The hon. Member for Middlesbrough talked about the Gibb report. Chris Gibb had a simple conclusion, which was that although there were problems on the network—that is why we are spending £300 million on improving it—by far the biggest disruptive factor was the trade unions.
Of course, we want rail staff to be paid fairly, but trade union leaders such as Mick Cash drive up ticket prices for hard-working people. The same unions that want CPI increases on fares want RPI—[Interruption.] The hon. Member for Middlesbrough should listen. The RMT guidance to their negotiators is that
“any attempt by an employer to link a pay award to CPI…must be refused.”
Mick Cash wants bigger rises for his members and lower rises for passengers. Where is the money coming from? It does not add up. Labour’s policies do not add up, and the unions’ policies do not add up.
Of course, you will remember, Madam Deputy Speaker, who pays the Labour party’s bills. Even the shadow Secretary of State has received financial contributions from the RMT. The Opposition are in the pockets of the trade unions, and that is simply not acceptable.
Andy McDonald
I know it has taken 100 years for the Conservative party to realise it, but we are the Labour and trade union movement. The Secretary of State needs to understand that. It is the cleanest money in politics—I would rather take from trade unions than from hedge fund managers and private health companies, as some who populate the Conservative Benches do.
Chris Grayling
The hon. Gentleman is bankrolled by the people who are inappropriately disrupting parts of the network and are politically driven. They disrupt the lives of passengers for political purposes. The Labour party should disown the unions and their current action. The hon. Gentleman’s conduct on this is not acceptable,
Huw Merriman
On my daily commute, as I walked through London Bridge station—as I know my right hon. Friend does—where there have been a lot of difficulties for me and my constituents, I noted that it is now an absolute temple to travel. We should talk positively about our rail system and not just knock it.
Madam Deputy Speaker (Mrs Eleanor Laing)
The Secretary of State did use a phrase that included the words “not acceptable”. He might wish to repeat what he wanted to say in slightly different words, because the shadow Secretary of State has a point about the precise use of words in the Chamber.
Chris Grayling
Madam Deputy Speaker, I think it is unacceptable to defend inappropriate strike action around the country by people who should not disrupt the lives of passengers. I wait with interest to hear any Labour Member say that the strikes are wrong. Sadly, I have not heard that for 18 months. I am waiting patiently. [Interruption.] The hon. Member for Middlesbrough says from a sedentary position that it is about safety, even though the safety regulatory authorities say that it is not. That is the shame of it.
Kate Hoey (Vauxhall) (Lab)
Why has the RMT been able to negotiate successfully in Scotland and in Wales the question of driver-only trains, which is concerning for the public, when we cannot get that here in England? Is it something to do with the Secretary of State?
Chris Grayling
Driver-only trains have been operating in this country for 30 years. The ASLEF union recently reached a perfectly sensible agreement with GTR about the development of new train technologies. Yet today the RMT is striking on South Western Railway, even though that company has said that it does not plan to take the second person off the train. That is an absurd position. Of course, the hon. Lady will remember the comments of the president of the RMT at the TUC conference, where he said that the real aim is to create a national rail strike and bring down the Government. That is my concern. It is about not passengers but political motivation, and that is not acceptable.
Chuka Umunna (Streatham) (Lab)
I sat here and watched the Secretary of State chuckle and smile as my hon. Friend the Member for Middlesbrough (Andy McDonald) made his contribution. My constituents have been suffering from the most dreadful services from Southern and Thameslink, and that is no laughing matter.
The Secretary of State refers to industrial action. The NAO report is clear that his Department did not check whether GTR had enough drivers and did not have a proper understanding of the condition of the network when it was setting the requirements of the franchise. The report is absolutely clear that the “cumulative effects” of the decisions made by his Department
“have negatively impacted on passengers.”
The Secretary of State can talk about industrial action all he wants, but when is he going to accept responsibility and, as the hon. Member for Eastbourne (Stephen Lloyd) just demanded, apologise to our constituents for the dreadful misery they have been suffering?
Chris Grayling
I have been Secretary of State for 18 months. Let us be clear what I have done. There are a number of problems on the network—I have never made any attempts to hide that. The infrastructure is not good enough, which is why we have launched an immediate £300 million programme to upgrade some of the areas of the network that are failing too often and why we have changed ways of working. I asked Chris Gibb to go in and bring together the operation of the track and the train on a daily basis in order to improve things. London Bridge has been opened, and we are now able to run longer trains for passengers. Those are brand-new trains going through the hon. Gentleman’s constituency. Chris Gibb, who everybody has rightly said is a well regarded, independent figure, said that above all, the unacceptable disruption to the hon. Gentleman’s constituents was caused by the trade unions. The Labour party and the unions demanded the publication of Chris Gibb’s report. It was published, and that is what it said. They may not like it, but that is what it said.
Mr Sheerman
This could turn into a really good debate on the future of the rail industry, but I suggest that the Secretary of State is making it a bit too partisan. Could we not return to what everyone across the House knows to be the serious problem—the quality of management and the broken franchising system? Will he get on to that?
Chris Grayling
The biggest problem is that we have not had enough new trains or enough investment. That is why it is right and proper that this Government are spending more than any since the steam age on improving the infrastructure, and why new trains are being introduced right across the country. There are new trains on the Great Western routes, on the east coast main line and in the north. Every single train in the north of England is being replaced or refurbished as new in a transition programme of a type that has not been seen for decades and decades. That is what the railway really needs.
Sir Desmond Swayne (New Forest West) (Con)
And, indeed, there are new trains on South Western Railway. The problem is that the new trains are designed to have the doors opened by the driver. South Western Railway has guaranteed to schedule two members of staff—continuing to have a guard—on every train, so it now comes down to the ridiculous argument of which of them opens the doors. I remember when we used to be allowed to open the doors ourselves.
Chris Grayling
My right hon. Friend is absolutely right; it is a completely pointless strike. This is what frustrates me. I normally have a good relationship with the shadow Secretary of State, but it frustrates me that he will not stand up and say to the unions, “Why will you not stop this action?” We have been very clear that on South Western Railway, the second member of staff is staying on the train. On Southern, there are more members of staff working on trains today than there were before the industrial dispute started, so why on earth is the dispute carrying on? It is wrong. Why cannot everyone one in this House say, “Just get back to work”?
Several hon. Members rose—
Chris Grayling
I will take two more interventions, and then I will make some progress.
Sir Patrick McLoughlin
The Secretary of State may not actually be able to answer my question at the moment, but the Minister may be able to later. Could he give us an indication as to how much investment there will be in new infrastructure and new railway carriages between 2010 and 2020? How does it compare with the kind of investment that took place between 1997 and 2010?
Chris Grayling
I cannot give the exact numbers, but we are investing tens of billions of pounds in the railways over the period that my right hon. Friend mentioned. Crucially, the private sector that the Labour party seems to dislike so much is investing billions of pounds in those new trains. The new trains that are arriving in all parts of the network right now are being funded not by the Government, but by the private sector.
This is the key flaw in Labour’s arguments. Actually, if we get rid of the private sector in the rail network, there will not be any new trains, because this is about billions of pounds that is coming from elsewhere. That money comes otherwise from the Treasury—it has to compete with money for schools and hospitals. Through the public-private organisations that work side by side in our railways, we are delivering a huge infrastructure investment programme and, at the same time, a transformation of our rolling stock. That is what is necessary.
Several hon. Members rose—
Grahame Morris
It is an interesting concept that the travelling public have got a good deal that is paid for by the private train operating companies. I just checked what it would cost me if I left the House of Commons and went to Durham now. It would cost me £153 standard class—or £236 first class, but of course we are not allowed to do that. A similar journey at the same time of day from Frankfurt to Munich in Germany would cost £39 and tuppence. How is it that our travelling public are getting a good deal from this fragmented privatised system?
Chris Grayling
In this country, under Governments of both persuasions, we have taken decisions about the right balance between the cost of the railways being borne by those who use the railways and those who do not. Yes, the hon. Gentleman may be quoting walk -up fares, but he can go and buy an advance ticket for the east coast route at a fraction of the cost that he described.
Chris Grayling
I am going to make some progress now, I am afraid, because the shadow Secretary of State asked a variety of questions about the east coast main line and I want to respond.
The reality is that sometimes the private companies get it wrong. The situation on the east coast franchise is a clear example. Virgin and Stagecoach overbid, and they are paying, and will pay, the price. I repeat—they will pay the price.
I have listened with interest to some of the ill-informed comments about the situation on the east coast line in the past few weeks. I have heard some absurd claims from people who do not understand what they are talking about. So let me explain to the House what the position is. I am not agreeing to early termination of a contract in 2020; no one has asked me to. This railway is paying a huge premium to the taxpayer and continues to do so, but the issue is that this franchise is not delivering the profits the operator expected and is at risk of not making it as far as 2020.
Graham Stringer (Blackley and Broughton) (Lab)
Will the Secretary of State give way?
Chris Grayling
No—forgive me, but I am going to explain this in detail.
Passenger numbers are rising on this railway; customer satisfaction is up; and the line is generating a healthy and growing operating surplus that is providing a much greater return to the taxpayer than when it was in the public sector. It is also worth saying that it is running more services and employing more staff. The money that the franchise pays to the Government is today 20% higher than it was under public ownership. But Virgin and Stagecoach got their numbers wrong. They have been losing money steadily, and have now lost the best part of £200 million in the past three years. Despite that, I am holding them to their full financial obligations, taking every last penny of the £165 million guarantee that we insisted on when they took on the franchise.
Chris Grayling
I am going to finish this point, and then I will take the hon. Gentleman’s intervention, if that is okay.
That is a huge sum of money for a British business with a market capitalisation of under £1 billion pounds. It is also one of the biggest bonds of its kind ever provided in the rail industry. But despite Labour’s claims, this is not a bail-out. There is no viable legal mechanism through which I can extract any more money from the company. My Department is preparing contingency plans as we do not believe that the franchise will be financially viable through to 2020. I clearly have a duty to do that for passengers. When we reach a conclusion that works, I will come back to this House and make a statement. However, I do plan to go ahead with the east coast partnership, as I indicated in my statement a month ago. People in this country do not understand the separation of track and train, and as part of our reforms we are bringing the two together, as Sir Roy McNulty recommended in his report. I now give way to the hon. Gentleman.
Andy McDonald
I am grateful to the Secretary of State. Can he make this clear? He is talking about the parent company guarantee, which will be paid. What about the premium payments from 2020 to 2023, which amount to £2 billion? Is the company going to pay those premiums, or not?
Chris Grayling
As I have just said, we are currently not convinced that the franchise will make it as far as 2020, so we will put in place alternative arrangements. The hon. Gentleman was clearly not listening to what I was saying. However, this railway will continue to deliver a substantial operating surplus—a premium to the taxpayer—whatever the situation. Whatever happens, this railway will continue to deliver large sums of money to the taxpayer.
Graham Stringer
If I heard the Secretary of State correctly, he was confirming the article in The Sunday Times saying that the full contract, as it was let, was not legally enforceable. If that is the case, will he confirm it, and will he explain to the House why he agreed a contract that was not legally enforceable? If it is not true, why will he not demand the full £2 billion?
Chris Grayling
The hon. Gentleman has not understood the finances of the rail industry. The money that the taxpayer receives from the operating profit—the taxpayer receives the lion’s share—will continue to flow into the public coffers whatever happens. The contract that was let between Virgin-Stagecoach and the Government will be fully enforced—I repeat, it will be fully enforced—and I make the absolute commitment to the House that that will happen.
I will now make further progress. We have heard this afternoon, more explicitly than we have previously heard it, that the Opposition’s policy is to return to the days of British Rail. There is somehow the idea that this will bring nirvana, but it actually only takes a moment’s thought to realise how flawed their thinking is, assuming they have done any the first place.
Our network suffers from three main problems. First, the infrastructure, which is already run in the public sector—Labour Members forget that—is often old and unreliable. About two thirds of the problems on our rail network result from issues with the publicly run infrastructure. This is not about who runs it and who owns it, but about investment in the infrastructure. That is why I am pleased to have just announced a further £20 billion renewal programme for infrastructure—concentrating on replacing older points, signals and the rest, and upgrading systems—so that we have a more reliable railway. That is the first problem, and the first solution.
The second issue is that the system is heavily congested. It would not matter who was running the railway, because routes into places such as London Waterloo or Manchester Piccadilly would still be full. What those stations and routes need is longer trains, and that is why the private sector, supported by the Government, is now investing in longer trains all around the country—in Manchester, all around London, in the west country and in the west midlands. That is the next priority. Probably the biggest renewal of rolling stock in modern times is taking place at the moment, and it is certainly by far the biggest in Europe. That is what is necessary. Someone on an eight-coach train that is full in the morning needs a 10-coach train, and that is what we are delivering. It is also why we are expanding capacity routes such as Thameslink, which will make a huge difference through central London, and why we have opened the Ordsall Chord in Manchester, which will provide linkage across the city and create extra capacity on trans-Pennine routes.
Thirdly, the system is organisationally too fragmented—too many people debating with each other, rather than solving problems for passengers—which is why our strategy is to bring back together the day-to-day operation of the track and the trains. Those are the three challenges facing the network today, and they are why passengers are often frustrated. We are working to address those problems with solutions and investment. That is the right strategy for the rail network, and shifting around the organisation, renationalisation and the rest of it will not solve those problems. Let us concentrate on the things that will make the difference for passengers, not on moving the deckchairs, as Labour Members seem to want to do.
Jonathan Edwards
Will the Secretary of State update the House on his discussions with the Welsh Government about devolving responsibility for the franchise in Wales? We are halfway through the bidding process, which the Welsh Government are conducting, yet powers over the franchise remain in Westminster, despite the British Government’s promises to hand them over.
Chris Grayling
That is simply untrue. The re-letting of the Wales and the borders franchise is being handled entirely by the Welsh Government. The interesting question is whether they are actually going to be able to deliver on their promises to electrify the Cardiff valley lines, the infrastructure of which I have given them as well. They have been given the opportunity to create an integrated metro railway for Cardiff, and I will be interested to see whether they can deliver what they have promised. They have control over the Wales and the borders franchise. The only power I have retained is to make sure that we look after the interests of people on the English side of the border. I am afraid the hon. Gentleman is just not right.
Geraint Davies
Has the Secretary of State seen, as he has mentioned this area, the proposals made by Professor Mark Barry for an electrified Swansea metro, which, through straightening the line, would reduce by half the time it takes to travel from Cardiff to Swansea? Implementing those proposals would provide the electrification David Cameron promised, an integrated Swansea metro and a shorter journey time.
Chris Grayling
I have not seen those proposals, but I say to the hon. Gentleman that I think it more likely than not that we will see on the Welsh valley lines and the Cardiff metro lines the same approach that I have taken in south Wales—using hybrid technology rather than electrification. That is what I think will be done.
Chris Grayling
From a sedentary position, the hon. Gentleman talks about dirty diesel. What we are now seeing is the arrival of new technologies that will transform the way our railways work. We will soon see hydrogen trains. The new generation of trains—hybrid trains—is much cleaner than its predecessors. New technology is giving us extra versatility.
Many Members want to speak, so I shall conclude. Today, I am afraid that we have heard from Labour Members a position based on sand. They want lower fare rises, but will not tell us how those will be paid for because their numbers do not add up. The irony is that in London, where Labour is in power, the fares are going up by more than fares in the rest of the country. By contrast, we are addressing the real problems on the rail network. We are providing the investment that the railways need.
Somebody mentioned disruptions over Christmas. Yes, I know passengers had a disrupted time. The reason for that is that we are spending billions of pounds across the country. At some point, the work has to be done. Those people who walk into London Bridge station in the mornings, as well as those people up in the north-west where improvements are happening and people elsewhere across the country, will now see new facilities—broader facilities, expanded facilities—that will make a real difference to passengers.
John Redwood (Wokingham) (Con)
The Secretary of State is quite right that technology and investment will make a huge difference. Will he confirm that modern digital signalling will allow the railway to run many more trains an hour safely on the same piece of track, which could be the cheapest and best way to deal with the bottlenecks?
Chris Grayling
My right hon. Friend is absolutely right. We are already seeing that Thameslink is going to use digital signalling in a way that has never happened before in this country. We will use digital signalling in the improvements on the trans-Pennine route and elsewhere. This Government are investing in the railway. This party believes in the railways. It understands the need to expand capacity on the railways.
We have not done enough for much too long. In the years since privatisation, passenger numbers have grown and grown after the years of decline in the days of British Rail. So the pressures have increased, as have the challenge and the need to invest. That is why we are spending billions of pounds on the infrastructure, building stations such as London Bridge, building routes such as Crossrail and replacing every single train in the north of England. It is why we are acting in a way that, during 13 years in power, the Labour party never did.
Several hon. Members rose—
EU Transport Council
Lord Grayling Excerpts(6 years, 11 months ago)
Written StatementsRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Secretary of State for Transport (Chris Grayling)
I attended the only formal Transport Council under the Estonian presidency (the presidency) in Brussels on Tuesday 5 December.
First, the Council noted the presidency’s progress report, summarising discussions to date at official level, on phase one of the mobility package. Work has focused on proposals designed to improve the clarity and enforcement of the EU road transport market (the ‘market pillar’) and proposals on the application of social legislation in road transport (the ‘social pillar’). I broadly supported the progress made, emphasised the UK’s commitment to a constructive safety-first approach to updating the rules, but also registered concerns over the proposed extension of scope of part of the regulations to small vans.
Following this, the Council adopted three sets of Council conclusions: on progress in Trans-European Network-Transport (TEN-T) and Connecting Europe Facility (CEF), the Digitalisation of Transport, and the mid-term evaluation of Galileo, EGNOS and European GNSS agency.
Next, the presidency held a policy debate on the “road charging pillar” of the mobility package. The proposals to amend the existing directives on HGV road tolls and user charges (‘Eurovignette’) and the interoperability of electronic road toll systems (‘EETS’) set out rules for charging vehicles using the road (but do not mandate such charging) and promote better functioning of charging across national barriers. The UK broadly welcomed provisions on improving the functioning and enforcement of electronic road tolling systems. However, the UK said we were opposed to proposals to broaden the scope of EU charging rules to include cars, and had concerns about the proposed phasing-out of time-based road charging and measures mandating hypothecation of revenues from congestion charging.
Following this, the Council noted the presidency’s progress report on official level discussions on safeguarding competition in air transport. The UK did not dispute the need for fair competition but urged caution on proposals for regulatory measures; it was important to avoid potential negative impacts on the liberalised aviation market, connectivity, consumers, and member states’ bilateral aviation agreements with third countries.
Under Any Other Business, several items were discussed. Notably, Commissioner Bulc presented the Commission’s recently published second phase of the mobility package, provided an update on the implementation of the extensive aviation strategy, alongside a communication on military mobility, and noted progress on rail passenger rights negotiations; Finland called for reconsideration of the summertime directive; Germany updated on the second high-level group on automated and connected cars; Poland drew attention to the 2018 international maritime days ; France promoted her proposed declaration at the upcoming “one planet” summit calling on the IMO to adopt an ambitious strategy for the decarbonisation of international shipping; and Bulgaria presented transport plans for her incoming presidency of the Council of the European Union.
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