Road Haulage
Lord Grayling Excerpts(6 years, 9 months ago)
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The Secretary of State for Transport (Chris Grayling)
The impact of disruption at the port of Dover and Eurotunnel in Kent can lead to significant congestion in that county and further afield. In the event of such disruption, Operation Stack is deployed which queues lorries on the M20 until they can access their ferry or train, closing parts of the motorway to other traffic. However, it has been accepted that this is not an ideal contingency solution particularly given the impact it has on the M20, the surrounding roads, and in particular on people and businesses in Kent.
Following significant and long-running disruption in the summer of 2015, due to French ferry employee industrial action and migrant activity in France, Operation Stack was deployed for over 30 days that summer. The Government determined to find a solution to the issue and announced that a new lorry holding park would be built at Stanford West in Kent. The lorry park was to be designed to mitigate the worst impacts of Operation Stack by taking lorries off the road until they could be released to Dover or Eurotunnel.
However, in October 2016 this decision was judicially reviewed on the grounds that the Government had not properly taken into account the environmental impact on a local business and the area in which the lorry park would be built.
Today I am withdrawing the earlier decision to site a lorry park at Stanford West on the grounds that the Government can no longer defend the judicial review. My Department and Highways England have, since being judicially reviewed, tried to find a solution so that the lorry park could be delivered as quickly as possible to mitigate the impacts of Operation Stack, while also meeting our environmental obligations. However, it has not proven possible to do so.
But I can announce today that we are immediately starting the process to promote a lorry park through the normal planning process, including a full environmental impact assessment, as a potential permanent solution to Operation Stack. As part of this we will reassess the scope, scale and location of our solutions, taking into account changes since the original concept of the lorry park was promoted, in particular the UK’s exit from the European Union but also the need for “business as usual” lorry parking in Kent. Highways England intend to consult on the options in early 2018 with a view to submitting a planning application in 2019.
Alongside this, I have tasked Highways England with developing an interim solution to be in place by March 2019. Highways England have developed a number of options that, while continuing to hold HGVs on the M20, would allow non-port traffic to continue to travel in both directions reducing the levels of traffic disruption seen in Operation Stack. This could, for example, be through holding HGVs in the centre of the motorway rather than on the coast-bound carriageway. Different technologies ranging from steel barriers to moveable barrier systems could be deployed to deliver these solutions. A final decision on which option to take forward will be made in early 2018, with a view to completing delivery by March 2019.
Specific investment decisions on both the permanent and interim solutions will, of course, be subject to normal considerations of affordability and value for money.
Today’s announcement demonstrates that despite the setback to our plans to build a lorry park at Stanford West, the Government are still serious about finding both short and permanent solution to help tackle the traffic disruption that can occur from disruption at our busiest border for lorry freight.
[HCWS246]
Aviation Update
Lord Grayling Excerpts(6 years, 10 months ago)
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The Secretary of State for Transport (Chris Grayling)
This time last year, the Government selected a new north-west runway at Heathrow as its preferred scheme for delivering much-needed new airport capacity in the south-east. This was a move made in the national interest—to spread the opportunity to travel and trade throughout the UK, through more flights between our global aviation hub and our regional airports.
In the last 12 months we have published a draft airports national policy statement (NPS), and been listening to views through a major consultation exercise. We have also published a new national air quality plan and taken steps to address the impact of noise around our airports, which are set out below. Heathrow airport has been working with airlines to bring down the cost of the proposed scheme, in line with the ambition I set out to keep landing charges as close as possible to current levels. Now that the Select Committee has been reconstituted, we remain on track to bring forward a final airports national policy statement for a vote in this House in the first half of next year.
Today I am publishing updated aviation demand forecasts which show that the need for additional runway capacity is even greater than originally thought. They show that all five of London’s main airports will be completely full by the mid-2030s, and four of them within a decade. Crucially, they also show us that the north-west runway scheme at Heathrow is the one which delivers the greatest benefits soonest. In addition, it continues to offer the greatest choice in terms of destinations and frequency of vital long-haul routes. Heathrow handles more freight by value than all other UK airports combined and it has superior connections to the rest of the UK through road, rail and domestic flights.
Today I am beginning a short period of consultation on the draft airports NPS to allow people to consider these updated forecasts, alongside other new evidence which was unavailable at the time of the initial consultation. This includes the national air quality plan which was published in July 2017. Updated analysis of this shows that the Heathrow north-west runway scheme can be delivered without the UK breaching its air quality obligations. We will continue to ensure that if expansion goes ahead at Heathrow, it is delivered according to air quality obligations through a suitable package of mitigation and policy measures.
This period of consultation will focus on those elements of the draft airports NPS affected by the updated evidence and will run for eight weeks until 19 December. I have asked Sir Jeremy Sullivan to continue in his role as an independent adviser to oversee this process, and I am grateful to him for his work.
The revised draft airports NPS has been laid in the Library of the House and will also receive Select Committee scrutiny. The recommendations they make will be an important consideration as we move forward. As required by section 9(6) of the Planning Act 2008, I am specifying a “relevant period” for Parliamentary scrutiny. This will start today and end on 23 March 2018.
Alongside this, our work to develop a new aviation strategy will look beyond a potential new runway at Heathrow, and will set out an ambitious long-term vision for the sector, which will support economic growth across the whole UK. In addition to considering how we can make best use of existing capacity at all airports around the country, it will look at any future need for new capacity away from Heathrow, whilst tackling environmental impacts.
The impact of noise from aircraft is a national issue, and alongside the initial consultation on the draft airports NPS, we also consulted on proposals to support modernisation of the way UK airspace is managed. Today I am also publishing the response to that consultation, and confirm we will be establishing a new independent noise body to ensure communities around our airports have a say in airspace changes which may affect them. Along with a new call-in power for the Secretary of State for Transport on airspace changes of national importance, this is designed to rebuild the trust lost in the industry by communities and provide democratic accountability for the most significant decisions.
In addition, the measures I am outlining today will enable us to make much greater use of new technology, giving us the ability to manage our airspace more effectively to tackle delays, cut emissions and reduce the need for stacking above our busiest airports. They will also help support the airspace changes we need in our skies to meet future demand—including a potential third runway at Heathrow.
Today’s announcement marks another important step as we work to ensure the UK has the connectivity we need right now to lead on the world stage.
[HCWS197]
Roads
Lord Grayling Excerpts(6 years, 10 months ago)
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The Secretary of State for Transport (Chris Grayling)
I am today setting out further details of significant investment for our roads, including announcing the next two major local road schemes and 76 winners from the recent competition for national productivity investment funding on local roads. This funding from the Department for Transport totals £345.3 million.
This funding includes two new large local major road schemes receiving programme entry approval, at Carrington bridge in Worcester and at Middlewich in east Cheshire. The scheme in Worcester will alleviate congestion on the A4440 southern relief road and receive £54.5 million of funding towards a total cost of £62 million. The Middlewich eastern bypass will alleviate congestion in the town centre and facilitate the expansion of the Magnitude employment site. It will receive £46.8 million of funding towards a total cost of £56.9 million.
I am today announcing the winning 76 local projects which will receive funding of £244 million from the national productivity investment fund, during 2018-19 and 2019-20. The schemes will help to ease congestion, provide upgrades on important local routes, as well as facilitating the unlocking of economic and job creation opportunities. They will also support, in some areas, the potential delivery of new housing developments. Further information on today’s announcement is available on the Department for Transport’s website. These projects are an essential part of ensuring we have a country which works for everyone.
The Government announced the road investment strategy (RIS) in December 2014, an ambitious plan to increase much needed road capacity, boost economic development and improve road safety. It seeks to address many years of under-investment in England’s motorways and major trunk roads. Highways England has made good progress on delivery to date, completing 18 road schemes and starting work on 15 more.
Highways England has also undertaken longer-term planning work to ensure that the high level of road investment along key corridors of the network can be delivered in a way to minimise disruption and keep road users moving. These plans also help to mitigate delivery risks and achieve better value for money for the taxpayer. This planning work was referred to in recent ORR and NAO reports on the road investment strategy. I confirm that Government have agreed with Highways England’s plans to optimise delivery of the RIS. This re-profiling and optimisation of delivery is consistent with Highways England’s remit and does not involve any cancellation of schemes, so the regions of England can expect continued and similar levels of road investment.
Further details can be found on Highways England’s website and press releases.
[HCWS180]
Oral Answers to Questions
Lord Grayling Excerpts(6 years, 10 months ago)
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Fiona Onasanya (Peterborough) (Lab)
The Secretary of State for Transport (Chris Grayling)
We want our future relationship with the European Union to be mutually beneficial. It is in the interests of both sides to maintain closely integrated aviation markets. However, it is the Government’s responsibility to prepare for all potential outcomes. The Government continue to work closely with the aviation sector to ensure the industry continues to be a major success story for the British economy.
Sir Desmond Swayne
What European destination would want to turn away planeloads of spending British tourists?
Chris Grayling
My right hon. Friend makes a good point. Those with any concerns about 2019 just have to answer the question: how many hotels in Spain would be empty if the Spanish Government choose not to continue our aviation arrangements? That is why we will continue to make good progress towards satisfactory arrangements for the future.
Fiona Onasanya
In light of that answer, can the Secretary of State give an assurance that the Government will pursue an unchanged operating environment for the aviation sector in the Brexit negotiations with the EU?
Chris Grayling
I can give the hon. Lady that assurance. We believe it would benefit all the nations of Europe to continue the freedom of the aviation sector that we have seen over the past decade and more. That freedom particularly benefits regional economies and regional airports across the European Union, in this country and elsewhere. It would be foolish for anyone to try to stop that freedom.
Lilian Greenwood (Nottingham South) (Lab)
The nine freedoms of the air guaranteed under the European common aviation area have enabled the growth of low-cost air travel, with average leisure fares to Europe falling by a third since 1993. We have already seen easyJet hedge against a no-deal scenario, but what assessment has the Secretary of State made of the implications of the UK falling back on the Chicago convention? What would that mean for the future of UK airlines, UK airports and affordable flights for UK consumers?
Chris Grayling
The hon. Lady needs to remember that aviation regulation operates at a global level, at a pan-European level—in which there is an “open skies” agreement—and at a national bilateral level. I have worked carefully with the airlines and all those involved, and I am certain that not only will aviation continue post-2019 but that everyone wants aviation to continue post-2019.
The individual case of easyJet relates to the question of cabotage within the European Union, which is clearly a matter for debate. It will be a negotiation for the whole sector because, although we have successful airlines such as easyJet operating flights within the rest of the European Union, we also have a large number of continental hauliers doing business within the United Kingdom. It is to everyone’s benefit that such liberalisation continues.
Sir Vince Cable (Twickenham) (LD)
European competition law will no longer apply after Brexit, so how does the Secretary of State propose to allocate airport slots? By auction, or in some other way?
Chris Grayling
Of course, the big question is about the expansion of slots at Heathrow airport in particular, which will be a matter for the Government both to negotiate and agree. Right at the top of our priority list in allocating slots—and we have committed to this in what we have said about the proposed expansion of Heathrow airport—is that we reserve slots for regional connectivity. One of the key benefits of Heathrow airport expansion is the global connections it will provide to cities across the whole United Kingdom. Whatever approach we take, we need protection for those regional links.
Karl Turner (Kingston upon Hull East) (Lab)
The Secretary of State may be in denial, but the Chancellor has finally fessed up to the fact that, if there is no Brexit deal, it is conceivable that flights between the UK and the EU might be grounded. Is it not time for the Government to get their finger out and give the reassurances that the aviation sector so badly needs?
Chris Grayling
I am surprised that the hon. Gentleman, an experienced lawyer, did not read everything the Chancellor said. The Chancellor said that that was not going to happen and that, therefore, he will not spend a lot of money preparing for it. The actual reality is that we are doing a lot of preparatory work for all eventualities but, of course, the reason the Chancellor said what he said is that, as he says, that is not going to happen.
Theresa Villiers (Chipping Barnet) (Con)
Philip Davies (Shipley) (Con)
The Secretary of State for Transport (Chris Grayling)
As my hon. Friend will be aware, the Government have allocated significant resources to West Yorkshire for local transport schemes through the local growth fund, including £781 million over 30 years from local growth funding and “gain share”. In addition, I am pleased to be able to inform him this morning that £2.3 million is being allocated to Bradford Council for improved traffic management systems as part of the £244 million NPIF—national productivity investment fund—funding being announced today. Later this year, we will start consultation on the major route network, which may provide the routes to securing the Shipley eastern bypass that he is concerned about.
Philip Davies
I am very grateful to the Secretary of State for that answer and I very much welcome the new bypass fund that he is setting up, appreciating the difficulties that many motorists have in getting around. Does the new fund mean the long wait that local businesses, local residents and I have suffered waiting for a Shipley bypass may soon be at an end?
Chris Grayling
As I indicated, it is very much my hope that a number of schemes around the country will start to be brought forward for development under this fund. I would be rather surprised if the Shipley eastern bypass is not one of those brought forward as a proposal to the Government early on. As he knows, I will be joining him to see the issues around the Shipley eastern bypass and to see the possible routes shortly, and I have no doubt that he and his colleagues in his constituency will be making strong representations when I visit.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
No one begrudges the money for a Shipley bypass—certainly no one in Huddersfield does. What we are angry about in Yorkshire is the fact that this Minister has taken away the money and the promise for a trans-Pennine railway electrification. That is what we will not forgive him for. He must get his act together and invest in the north.
Mr Speaker
He mentioned Shipley but it is not sufficient simply to animadvert on Shipley. The question ought to relate to the matter.[Interruption.] Which is a bypass, as somebody has observed, very originally and wittily from a sedentary position.
Chris Grayling
It is worth putting on the record that I have not announced any changes to that programme. There is money for the trans-Pennine modernisation. I am expecting the detailed proposals from Network Rail later this year. However, it is worth saying that we are spending more money on more projects across the north of England than any Government have for decades and decades, including during the 13 years when Labour was in government. It is also worth saying that we have electrified four times as many miles of railway in the north of England alone than Labour did in 13 years in government. So I am not going to take any lessons from Labour Members about commitments to the modernisation of the transport system—in the north or elsewhere.
Martin Vickers
Many of my constituents would like to visit Shipley on many occasions, but in order to do so that they would have to travel along concrete sections of the A180, which causes great disturbance to residents in Stallingborough and other villages in my constituency. Will the Secretary of State urge Highways England to look favourably on funding improvements to that section of the A180?
Chris Grayling
I know that Highways England listens carefully to the comments made at Transport questions. My hon. Friend highlights something that is an issue in his area and throughout the country. I am clear that we need to do everything we can to ensure that the technology for future road surfaces delivers both durability and quietness.
Chris Grayling
I am always happy to meet the hon. Gentleman. I am not aware of the specific scheme he asked about, but it is precisely for the reasons he outlined that I have set aside money to create the bypass fund for the years ahead. I recognise that in a number of important regional towns too many areas are congested as a result of through traffic. That is particularly true in the Lake district and the major route through Kendal to get to places such as Windermere. I will happily talk to the hon. Gentleman about that.
Mr Peter Bone (Wellingborough) (Con)
Wellingborough is very similar to Shipley—one might even argue that the two MPs are rather alike in their views—but one problem that my constituents find in getting to Shipley is that they cannot get through Isham because a bypass has not been built. Is the Secretary of State able to offer some encouragement about the Isham bypass, which would enable my constituents to get to Shipley more easily?
Chris Grayling
May I first wish my hon. Friend a happy birthday? I am slightly surprised to see him wearing a more muted tie today. Although I cannot give assurances on every individual scheme, it is very much my intention that the bypass fund is there to fill in holes in what was once the strategic network. The network was de-trucked many years ago, leaving congestion problems in many regional towns and on many important regional routes, without an obvious and clear route to secure funding to ease that congestion. In the coming months I will consult colleagues from across the House as to how best we manage the process of getting that fund and those projects going.
Diana Johnson (Kingston upon Hull North) (Lab)
As a Yorkshire MP, it is always good to see promises of investment in places such as Shipley. Nevertheless, this summer the Secretary of State said to The Yorkshire Post:
“The success of Northern transport depends on the North”.
Will he explain how, with London getting 10 times as much money for transport investment as Yorkshire and the Humber gets, that is going to happen?
Chris Grayling
I am afraid some of the figures bandied around by think-tanks in the north are simply inaccurate. We are putting more investment into transport in the north of England than there has been for decades and decades—into the road system and the rail system. We are replacing every single train in the north with either a brand new train or one that has been refurbished as new. It is a long-overdue programme. It did not happen in 13 years under a Labour Government, when there was money aplenty. Even in tighter financial times, we see it as a priority to develop transport in the north, and that is what we are doing.
Deidre Brock (Edinburgh North and Leith) (SNP)
The Secretary of State for Transport (Chris Grayling)
I meet my right hon. Friends the Secretaries of State for Exiting the European Union and for International Trade regularly—indeed, I did so yesterday—to discuss the UK’s exit from the EU. Seeking new aviation arrangements—both with the EU and with those states where we currently rely on EU-negotiated arrangements for market access—is a high priority for my Department. We aim to have the new arrangements in place well before the day of exit.
Deidre Brock
The Secretary of State obviously agrees with the absolute need for aviation agreements, through either bilateral means or an EU-wide arrangement. Will he tell us how many DFT staff have expertise in negotiating aviation deals and how many are working on deals as we speak?
Chris Grayling
I have a big team that is experienced in dealing with such things, because, across the world, we have bilateral arrangements with countries in all continents. I have experienced teams that are working on that right now. We are pursuing the necessary successor arrangements that we will need for flights to countries around the world, and there is nothing but good will and constructive discussion between us and those countries in ensuring that there is no interruption in flying.
Jim Shannon (Strangford) (DUP)
Not only is the aviation timetable agreement important, but so is the securing of routes. Will the Minister tell us what has been done to secure routes for Belfast City and Belfast International airports to make sure that Dublin does not receive, to our detriment, the routes that we should be getting instead?
Chris Grayling
Of course, the choice of routes is ultimately down to the airlines themselves, but the hon. Gentleman will know that we provide significant support for important links from Northern Ireland, and we will continue to do so. The biggest difference for Northern Ireland will come with the expansion of Heathrow airport towards which we are working at the moment, and a guarantee of slots to provide excellent connectivity for Northern Ireland, Scotland, England and Wales into countries around the world.
Alan Brown (Kilmarnock and Loudoun) (SNP)
The Scottish Government have not been able to cut air passenger duty because the UK Government have not properly implemented an exemption for Inverness airport. Given the importance of low-cost carriers to Scotland’s regional airports, it is important that the Scottish Government are also involved in any discussions. However, to allow sufficient time for EU ratification, the aviation agreements need to be concluded by October 2018. How many staff does the Secretary of State have working on these matters, and what guarantees can he provide that travel will continue uninterrupted?
Chris Grayling
The hon. Gentleman makes his comment about air passenger duty in Scotland, but we did what the Scottish Government asked: we devolved air passenger duty and they have not cut it. I am afraid that they are discovering the realities of government. It is all very well making demands from the Opposition Benches, but when they actually have to take tough decisions, they discover that it is not all that easy. We are seeing that they are failing to deliver for the people of Scotland. When it comes to planning for aviation after Brexit, things are different, because we are planning for that and we will deliver. We will see, post 2019, that aviation continues to be the success story that it is today.
Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)
Matt Warman (Boston and Skegness) (Con)
The Secretary of State for Transport (Chris Grayling)
Before I respond to any topical questions, may I take this opportunity to express my thanks, and I hope those of the whole House, to all those involved in the repatriation of passengers affected by the collapse of Monarch Airlines? It was a huge effort across government, but particularly by the Civil Aviation Authority, and we all have good reason to be thankful to the team involved.
Matt Warman
Boston is a growing port and a growing town. New housing developments have preserved a route for a Boston distributor road, with which I know my right hon. Friend is familiar, but what will he do to help us to deliver the expensive but vital bridge in the middle of the distributor road, which we cannot of course ask housing developers to fund entirely?
Chris Grayling
Indeed, as my hon. Friend knows from my past visits to Boston, I am well aware of the importance of the Boston bypass project. The town is situated on an A road with a congestion problem and is one of those for which I would expect to see proposals come forward for the bypass fund. We will look very carefully at the bridge issue, and I am very happy to talk to him about that.
Alan Brown (Kilmarnock and Loudoun) (SNP)
You may not be aware of this, Mr Speaker, but just last week there was another great train robbery: £600 million was removed from Scotland’s rail budget because the Tories ripped up a long-standing funding formula. For the sake of Scottish rail users, will the Secretary of State get together with the Treasury and give Scotland the correct funding?
Chris Grayling
This is an historic moment: the Scottish National party is opposing a funding allocation that uses the Barnett formula. I was under the impression that it regarded the Barnett formula as sacrosanct. However, when the UK Government use the Barnett formula, it complains. The SNP cannot have its cake and eat it.
Mr Peter Bone (Wellingborough) (Con)
Holly Lynch (Halifax) (Lab)
Chris Grayling
There is a two-stage programme of modernisation for rail in the north, despite the nonsense that the shadow Secretary of State was talking earlier. Initially, we are replacing every single train in the north. We have modernised the Calder Valley line and are about to launch the modernisation of the main trans-Pennine route between Leeds and Manchester.
Of course we have done other things, such as electrifying the railway line from Liverpool to Manchester and creating the first ever link between Manchester Victoria and Manchester Piccadilly. A whole range of things is happening. What we said at our conference and will be confirmed at the Budget is that we will set aside funding to create the links between HS2 and Northern Powerhouse Rail. I am now waiting for the detailed Transport for the North proposals for Northern Powerhouse Rail. In the short term, we modernise the trans-Pennine route, and in due course we will build Northern Powerhouse Rail to ensure that we have those better links for the future.
Rebecca Pow (Taunton Deane) (Con)
Stephen Hammond (Wimbledon) (Con)
Chris Grayling
I expect to set out our further plans on the rail industry very shortly.
Justin Madders (Ellesmere Port and Neston) (Lab)
Further to the question from my hon. Friend the Member for Warrington South (Faisal Rashid), who was right to point out the impact of the new charges on the Mersey Gateway will have on his constituents, as well as the charges that are being introduced on the existing Silver Jubilee bridge, will the Minister tell us how many existing crossings, which were previously free, have had charges introduced on them in the past 10 years?
Mr Laurence Robertson (Tewkesbury) (Con)
Chris Grayling
We welcome open-access applications. They have made a real difference to many towns and cities around the country. It is clear that open access should happen where there is capacity for it to take place, so that it fills in gaps and puts in competition. The Office of Rail and Road is very careful in judging when it can permit open access and when it cannot. It looks very carefully at every proposal, and we welcome them.
Luke Pollard (Plymouth, Sutton and Devonport) (Lab/Co-op)
Further to the question from the hon. Member for Na h-Eileanan an Iar (Angus Brendan MacNeil) about the potential late tasking of lifeboats, will the Minister meet me, parliamentary colleagues and the coastguard to ensure that the launch protocols the coastguard uses are not adding undue delay in the tasking of lifeboats in emergencies?
Ruth Cadbury (Brentford and Isleworth) (Lab)
Domestic air travel is surely an integral part of the UK’s transport infrastructure. In their planning for Heathrow expansion, how much have the Government budgeted to increase the number of domestic routes to London from Scotland, Northern Ireland, the north and the south-west?
Chris Grayling
I hope that this is not a question of our budgeting, because I hope that the links will provide strong commercial opportunities. Governments seldom fund airline routes except in specific cases, such as our recent decisions over the air link from Northern Ireland to Stansted. I hope, however, that the opportunities created by the expansion of Heathrow airport for the regions around the country will mean a thriving trade and attract airlines to take those slots.
Kevin Foster (Torbay) (Con)
I know that the Rail Minister will share my excitement at the prospect of the first new station in the bay since world war two at Edginswell. Will he agree to meet me and the local council to see how we can take this forward and what the prospects might be for new stations funding?
Chris Bryant (Rhondda) (Lab)
The service on the Treherbert line is shockingly bad. Trains are regularly cancelled. When there should be four carriages, there are often two. Obviously, there is to be a new franchise, let by the Welsh Government, but we need more investment in the rail network, and that is down to the Westminster Government. We have 6% of the railways in this country in Wales. Why do we only get 1% of the investment?
Chris Grayling
In Wales right now, we have the biggest electrification programme in the country coming soon; we have new trains coming to Cardiff, Swansea and Pembroke Dock; we have a big investment programme funded by central Government in the valley lines; and I am now looking at what changes we can make to the north Wales line, where there is a real need for improvement.
Rail Infrastructure Funding 2019 - 2024
Lord Grayling Excerpts(6 years, 10 months ago)
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The Secretary of State for Transport (Chris Grayling)
I am today publishing my final statement of funds available for the railway in England and Wales for control period 6, which covers the years 2019 to 2024. This follows my publication of a high level output specification and initial statement of funds available on 20 July.
The high level output specification made clear that the Government are determined that the railway becomes more focused on issues that matter most to passengers—such as punctuality and reliability. It therefore focused on the operation, maintenance and renewal of the railway—areas which are crucial to delivering a more reliable railway. At the time of its publication, the Government deferred publication of a final statement of funds available, following more work to establish Network Rail’s costs and the scope for efficiency savings across control period 6.
This work has now concluded. On the basis of further work by Network Rail, of continued scrutiny by the Office of Rail and Road (ORR)—including through its independent reporter, Nichols—and through work by my Department and HM Treasury to challenge costings, Government are now in a position to set out their funding envelope for control period 6.
At this stage we expect around £47.9 billion to be spent on the railway across control period 6. Of this, we expect up to £34.7 billion to be provided directly via Government grant, with the remainder coming from a combination of track access charges and income from other sources, such as Network Rail’s property portfolio. These amounts will be refined during the regulatory process, which will produce by summer 2018 detailed draft amounts for the 2019 to 2024 period for consultation. Budgets will be set at route level, as part of the devolution of more accountability and authority to Network Rail routes, driving change in the organisation. The regulatory process will conclude with a final determination in October 2018.
During this process I expect the regulator to provide a strong efficiency challenge to maximise value for money, and the ORR has substantially changed its regulatory approach to help achieve this.
We have some of the most intensively used railways in Europe, and this investment focuses on the essential work needed to ensure their safety and reliability, including funding to support a significant increase in renewals activity compared to the current period, and increased maintenance spend to allow Network Rail to meet the challenges of a busier network. This investment recognises the critical importance of these activities in preserving the day to day operation of the railway.
I believe that a renewed focus on core railway activities will help return train performance to the levels that passengers expect and deserve. Overall, this significant funding demonstrates Government’s continued commitment to investing in the railway for the benefit of passengers, communities, the supply chain and the wider economy.
The Government have already made clear that they expect new enhancements to the rail network to be developed outside of the regulatory system. However, the statement of funds available published today includes funding to continue to take forward the enhancements that were deferred from control period 5. In line with the new process for enhancements these schemes will continue to be subject to ongoing consideration to ensure they deliver the best results for both rail users and taxpayers. In addition to this, I am making funding available for the early-stage development of new enhancement schemes. I will announce further details on a new process for taking forward enhancements later in the year. We need to ensure investment best addresses the needs of passengers and freight, and that funding commitments appropriately reflect the stage of development of those enhancements.
Furthermore, the statement of funds available also includes funding for continued investment in improvements to both the accessibility of the railway and the rail freight network. Our commitment to funding accessibility improvements in the railway further emphasises our drive to ensure that the railway is accessible to all. The Government have recognised the crucial role that rail freight plays in supporting the economy and the environment and our continued investment in the freight network recognises this.
Given the need to spend public money wisely and to incentivise the industry to do so, I believe the funding envelope published today is stretching yet achievable. I will continue to push Network Rail to improve its effectiveness and efficiency. In particular I support an ambitious approach to route devolution, so that Network Rail is more focused on its customers. I will also modernise the Government’s oversight and assurance arrangements for Network Rail to properly reflect its public sector status. I have taken steps to ensure that this money is spent more effectively and that the problems with cost and delivery which occurred during control period 5 are not repeated. I will also continue to drive improvement across the wider industry, including the franchising system. I will update this House further on my plans for wider rail strategy in the near future. I am arranging for copies of the statement of funds available to be placed in the Libraries of the House.
The statement of funds available can be viewed online at:
http://www.parliament.uk/business/publications/written-questions-answers-statements/written-statement/Commons/2017-10-12/HCWS160/ .
[HCWS160]
Monarch Airlines
Lord Grayling Excerpts(6 years, 10 months ago)
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The Secretary of State for Transport (Chris Grayling)
With your permission, Mr Speaker, I would like to make a statement about the steps the Government have been taking to support those affected by the collapse of Monarch Airlines, in particular the 110,000 passengers left abroad without a flight back to the UK and the almost 2,000 people who have lost their jobs.
This situation is highly regrettable and all parties considered options to avoid the collapse of the company. Ultimately, however, Monarch’s board took the decision to place it into administration and it ceased trading at around 4 am on Monday 2 October. The engineering arm of the group remains a viable business and continues to trade. Ahead of the collapse, my Department had been working closely with the Civil Aviation Authority and several Departments across Whitehall to prepare contingency plans, and the response since last week has been swift and substantial.
To put the situation into context, this operation is the largest of its kind ever undertaken. The CAA has essentially set up one of the UK’s largest airlines to conduct it. Let me give Members a sense of the scale. We have put arrangements in place to bring back 110,000 people to the UK, with 700 flights over a two-week period. We have had a maximum of 35 aircraft in operation at any one time. The CAA is working to secure planes from 27 different airlines. More than 200 CAA staff are working on the project with thousands more in partner organisations taking part. There are 40 airports involved in the UK, around the Mediterranean and beyond. That has required 267 coaches carrying more than 13,000 passengers, and so far there have been more than 39,000 calls to our customer service centres, all swiftly answered by more than 250 call centre staff. There have been more than 1 million unique visitors to a dedicated website— monarch.caa.co.uk—and 7 million page views. Furthermore, more than 1 million people have been reached through our Facebook promotion. Ten Government Departments and agencies have been involved, including the Foreign and Commonwealth Office in London and our extensive diplomatic and consular network in the affected countries.
I have seen at first hand the work being done across Government and the CAA to make this operation a success. I have spoken to some of the passengers who have returned to the UK on Government flights. I have been hugely impressed by what I have seen, and we have had a very strong, supportive response from the passengers affected, many of whom deservedly praised the CAA and all the Departments involved in this enormous operation.
Normally, the CAA’s responsibility for bringing passengers back would extend only to customers whose trips are covered by the air travel organisers’ licence scheme, but this is the largest airline failure in UK history and there would have been insufficient capacity in the commercial aviation market to enable passengers to get home on other airlines. The danger was that tens of thousands of passengers abroad would have no easy means of returning to the UK. That is why I instructed the CAA to ensure that all those abroad were offered an alternative flight home. As of last night, around 80,000 passengers had returned to the UK; that is almost three quarters of the total number who were abroad at the time of the collapse. We have had teams of Government officials at overseas airports providing advice and assistance to passengers.
Despite those robust plans and the smoothness of the operation so far, the situation is hugely distressing for all concerned. Obviously, it has been a priority to get people back to the UK, and our hearts go out to those who have lost bookings as a result of the collapse, but in addition to supporting passengers we have been focused on working to ensure that the almost 2,000 former Monarch employees receive the support they need. I am pleased to report that airlines have already directly appealed to those former employees. For example, Virgin Atlantic is offering a fast-track recruitment process for cabin crew and pilots, and easyJet has invited applications for 500 cabin crew vacancies. I and members of my team spoke to the airlines when it became clear what was happening to try to secure their help in getting those opportunities for staff, and I am pleased to see that coming to fruition. easyJet is also calling for direct-entry captains or first officers who meet captain qualifications.
All former Monarch employees will have received information from Jobcentre Plus outlining the support available to them. In total, Jobcentre Plus has pulled together a list of more than 6,300 vacancies across the major UK-based airlines—that is more than three times the number of people being made redundant—which I hope will help those former employees to remain in the airline business. The Minister with responsibility for aviation has been in contact with Members whose constituencies have been hardest hit by these job losses. They have our assurance that we will work with them and the industry to offer what support we can.
I am also aware of the Government’s duty to the taxpayer. Although affected passengers have been told they will not have to pay to be flown back to the UK, we have entered into discussions with several third parties with the aim of recovering the costs of the operation. The ATOL scheme of course provides financial cover for those with ATOL protection. We are currently engaged in constructive discussions with the relevant credit and debit card providers so that we can recoup from them some of the cost to taxpayers of the repatriation flights. We are having similar discussions with other travel providers through which passengers may have booked a Monarch holiday, and I thank all those with whom we have held discussions for their constructive and realistic approach.
The initial response to this unprecedented situation would not have been so successful without the support and co-operation of many players. I am sure we would all say that the loss of a major British brand that was close to celebrating its half-century is a really sad moment. However, it should not be seen as a reflection on the general health of the UK aviation sector, which continues to thrive. We have never had the collapse of an airline or holiday company on this scale before, and we have responded swiftly and decisively.
Of course, right now our efforts are rightly focused on getting employees into new jobs and getting passengers home. After that, our effort will turn to working through any reforms necessary to ensure that passengers do not find themselves in this position again. We need to look at all the options—not just ATOL, but whether it is possible to enable airlines to wind down in an orderly manner and look after their customers themselves, without the need for the Government to step in. We will be putting a lot of effort into that in the months ahead. Our prime task has been to get people home, and I am immensely grateful to all who have taken part in what has proved, so far, to be a smooth and successful operation.
Andy McDonald (Middlesbrough) (Lab)
I thank the Secretary of State for advance sight of his statement.
Britain’s fifth largest airline, Monarch, collapsed because of a litany of failures by the Government, the regulator and the company’s financial backers and advisers. Its demise must also be seen in the context of a ferociously competitive aviation sector, which is adjusting to major overcapacity problems and the loss of services because of terrorism. A further backdrop to the industry is the foggy skies of Brexit, and the total lack of certainty from this Government for the British aviation industry after March 2019.
The airline’s bankruptcy has left huge losses on the shoulders of the public, rather than of the parent company or the regulator. It is the staff, customers, the taxpayer and pensioners who will pay the price. Creditor bills include the £60 million paid by the Government to repatriate holidaymakers, not forgetting the £26 million paid last year when Monarch previously came close to collapse; the £7.5 million to the Pension Protection Fund; the 45 days’ pay owed to the 2,000 staff who were made redundant; and the ticket refunds for the 750,000 outstanding bookings at the time of the collapse.
Why did the Government not do more to support Monarch and ensure that the company was viable, if only for the short term? The German Government recently stepped in to assist Air Berlin and the Italian Government have supported Alitalia. At the very least, an orderly wind-down of the airline would have been preferable to sudden administration.
Monarch is reported to have had £50 million in the bank. Why was the airline not granted a short-term ATOL licence extension, which would have allowed it to continue trading and at least bring its passengers back? Who decided not to grant Monarch an ATOL licence extension? More time would have allowed Monarch to be sold in parts. For example, Monarch’s landing slots are reported to be worth £60 million. Such assets could have been realised in an orderly wind-down. Instead, moneys from the sale of these assets will go to the secured creditor and former owner Greybull Capital, while the public purse gets nothing.
The statutory role of the CAA is to provide choice and value for money for passengers. British consumers now have one less airline to choose from. On its watch, there has been a surge in the cost of UK air fares following Ryanair’s cancellation of flights last month. Monarch’s demise will only push up flight costs further. There is an estimated £200 million in the CAA-administered ATOL compensation fund, yet it only covers about one in 20 of Monarch’s customers. Why is the public purse paying while the outdated ATOL pot sits largely untouched? Monarch Airlines continued to sell flights until Sunday 1 October, even though the airline knew it was going into administration the following day. Why did the CAA not act to stop that?
Greybull Capital’s takeover of Monarch in 2014 was the beginning of the end for the airline. Greybull is a private investment firm that has already presided over the collapse of My Local convenience stores and Comet, among others. Serious questions must now be asked about the conduct of firms such as Greybull, the way they invest and their wider stewardship.
A report in yesterday’s edition of The Sunday Times suggested that the £165 million rescue package for Monarch last year was largely funded by Boeing, as part of a cut-price deal for an order of 737 aircraft. What is the Secretary of State’s assessment of the role of Boeing in the financial engineering of Monarch? The Prime Minister recently criticised the conduct of Boeing against Bombardier in Belfast, in support of her Democratic Unionist party allies. Why is there no criticism of Boeing’s role in the loss of 2,000 jobs in Luton?
The role of KPMG must also be called into question. The firm was appointed to seek buyers for Monarch’s short-haul business prior to its collapse. It was actively doing so. Why is the same firm now acting as Monarch’s administrator? Does the Secretary of State agree with me that that is a glaring conflict of interest?
Finally, the way in which Monarch met its demise should set alarm bells ringing, so will the Secretary of State confirm that there will be a full investigation into the concerns that have been raised?
Chris Grayling
I am sorry the hon. Gentleman did not have a good word to say for all the efforts put in place to bring people back. I would just remind him that, interestingly, in 2008—the last time we had an aviation failure in this country, Excel Airways—the Labour Government followed a very similar path to the one we have followed, with taxpayer-funded repatriation. They did the right thing then, and we are doing the right thing now. I am simply sorry that Labour Members have forgotten that they did the right thing in government, and cannot now say that our doing the right thing this time is indeed the right thing to do. [Interruption.] They did the right thing then, and we are doing the right thing now, and I am just sorry that he could not say a good word about those involved.
The hon. Gentleman talked about the reasons for the collapse. First, this is not an issue about Brexit. The airline had been struggling for three years, and the first concerns were raised about it long before the referendum was even held.
I had hoped that this summer, after the rescue package last year, the airline would see its way through. As its chief executive said, it has been a victim of the anxieties about tourism in the east Mediterranean for security reasons. Those have led to a concentration of business in the west Mediterranean and the traditional resorts of Spain and Portugal and a price war from which the company was ill equipped to recover. That is what has happened, no more no less.
The hon. Gentleman asked about the licence, and there was no issue about its renewal. What happened was never about the renewal of the licence—the business had simply reached the end of the road. Its board came to the conclusion that it could not carry on.
The hon. Gentleman asked why the company carried on selling tickets the day before. The reality is that any airline that runs into difficulties will carry on selling tickets until it can no longer do so. The moment it stops doing so, it collapses, and that is what happened. It would happen any time an airline ran into such difficulties. There is no other way to do it. The moment it stops selling tickets, it stops doing business, and that is precisely what happened.
The hon. Gentleman talked about competition, and other airlines are already stepping into the breach. Jet2, one of our fast-growing, emerging airlines, has already said that it will step in and run some of the routes. That is what a market does. If one business fails, others step in. The tragedy of the Labour party in the last few years is that it has moved away from understanding markets to being utterly hostile to markets and the private sector.
We have a thriving aviation sector with competition between airlines delivering a good deal for consumers, and occasionally—once under a Labour Government and once under ours—something has gone wrong. In both of those situations, the Government of the day stepped in to try to make sure that we looked after the travelling public. I have no doubt that if it ever happens again, someone will do the same.
We do have to learn the lessons. We have to understand whether we can make sensible changes to the laws to ensure that this does not happen again. We are already legislating to extend the ATOL scheme to provide better protection for people who book over the internet in a different way from how they have in the past. I am clear that the job of the Government is to look after the travelling public and step in when things go wrong. We have done that, and we are seeking to get back as much money as possible, as Labour did in 2008. Above all, our job is to do our best for the travelling public and the employees. That is what we are doing. I am proud of what we are doing, and I am just disappointed that the Opposition cannot even say well done to the people who have worked so hard in support.
Crispin Blunt (Reigate) (Con)
The chief executive of Monarch has attributed the principal reason for the demise of the airline to terrorism and the resulting flight bans to both Tunisia and Sharm El Sheikh. Can the Secretary of State give his assessment of the merits of that argument?
Chris Grayling
There is no doubt that that was a significant factor, and not only because of changes in consumer patterns. Many other airlines chose to concentrate their resources this summer in the traditional resorts of Spain and Portugal. Alicante airport and others were full of planes this summer, and Monarch got squeezed out in a price war for which it was not financially strong enough. Ironically, it carried more passengers than two years ago, but with far lower revenues, and that more than anything else is what has caused its demise. It is a consequence of the security situation and of people taking a cautious approach to their holidays.
Patricia Gibson (North Ayrshire and Arran) (SNP)
The sad fate of Monarch Airlines is a stark example of the realities of Brexit beginning to bite. There is no denying that the fall in the pound has led to significant increases in the operating costs for the airline over the past year. The weak pound has also affected consumers and led to a drop in bookings. Add to that the uncertainties over the future of British carriers in Europe that served as a significant deterrent for any potential buyer who might otherwise have been found, and Monarch’s fate was sealed. Does the Secretary of State agree that as long as uncertainties over Brexit continue there is a danger of similar high-profile collapses?
Can the Secretary of State say with certainty today that the rights of UK passengers will not be eroded or diluted after Brexit? Will he confirm that the Government will work with administrators and the unions to ensure that employee rights are fully respected during the process, and that—where applicable—compensation is made available in a timely manner, in view of the fact that the manner of the administration raises real concerns about employee rights?
Chris Grayling
I am really sorry the hon. Lady has taken that approach. Let me be absolutely clear: this airline did not fail because of Brexit; this airline failed because it had a business model that was not capable of dealing with a price war in the Mediterranean. That is the reality of the situation and that is what its chief executive said. The hon. Lady talks about Brexit causing a lack of investment, but in the past few weeks we have seen a big expansion. Jet2 has set up a new base at Stansted and there has been a huge investment in the UK by Norwegian, which is becoming a real player in the low-cost marketplace. The market is changing and sadly Monarch, a business that has been around for 50 years, was not able to adapt to those changes. I am afraid she is just doing a disservice to the economy of the United Kingdom when she claims that this was a consequence of Brexit. She talks about employees. The biggest favour we can do for the employees of Monarch is to work to ensure they get another job quickly, and that is what we are seeking to do.
Ms Esther McVey (Tatton) (Con)
Following on from the many letters I have received from constituents, will the Secretary of State join me in thanking and congratulating the staff of the CAA, the Department for Transport and my local airport, Manchester airport, on the work they have done on the biggest evacuation in peacetime?
Chris Grayling
I am very happy to do that. I pay tribute to the staff of Manchester airport—I met the first plane back at Manchester airport—who rowed in behind the challenge. They were notified only late on the previous day, but by Monday morning staff were out greeting passengers, telling them what had happened and sorting out all the issues arising from the administration. I owe a big debt of gratitude to the staff of Manchester airport, Gatwick airport, Birmingham airport, Luton airport and Leeds Bradford airport, all of whom rose to the occasion, and to all the other people and organisations involved in the exercise.
Lilian Greenwood (Nottingham South) (Lab)
In 2014, the CAA recognised the fragility of Monarch’s finances and insisted on ATOL protection of flight-only bookings, but that requirement was dropped in December 2016. Monarch’s administrators cite cost pressures and increasingly competitive market conditions as contributors to its collapse. Given that the fall in the value of the pound and the loss of tourism in Egypt and Tunisia predate that decision, passengers will rightly ask why the requirement for ATOL protection was removed. Will the Secretary of State explain the process for deciding to drop ATOL protection of flights, the Department’s part in that decision, and how much the decision will ultimately cost UK taxpayers?
Chris Grayling
The ATOL scheme counts as public expenditure whatever happens. The impact on public finances, whether or not this was covered entirely by the ATOL scheme, remains the same because of how Government accounting works. I take advice from the CAA on the steps we need to take. Last year, Monarch had a big injection of cash, and in the first part of this year it looked like things were back on the straight and narrow. What changed this summer was the price war, which undermined the company’s revenues and led to a position where its losses were mounting week by week. That was the real issue. I have no doubt that the hon. Lady and her Committee will want to deal with these matters in greater detail, and I look forward to talking to her. She has every right to scrutinise what we have done. We sought to do our best for the travelling public and to take the decisions we were advised to take at the right time.
Anna Soubry (Broxtowe) (Con)
As a former Business Minister before the EU referendum, and apparently as one of the chief “remoaners”, may I make it absolutely clear that the unfortunate demise of Monarch has absolutely nothing to do with Brexit? Those who seek to make it an issue based on Brexit do not do anybody any favours. I commend the Secretary of State not only for his statement but for his hard work and that of his Ministers in doing their utmost to bring everybody back to this country. Will he confirm that Transport Ministers and Business Ministers have been doing their absolute best for Monarch for years? Will he continue to work with Foreign and Commonwealth Office Ministers to look at how we can open up airports, such as Sharm El Sheik and those in Tunisia, to support the rest of our aviation industry?
Chris Grayling
I am very grateful to my right hon. Friend for her words. She is absolutely right. This is a sad tale of an airline that has been struggling for years. A lot of effort has been put in by many people to try to keep it afloat. It is a real disappointment that they were not able to succeed. She is absolutely right about the Brexit issue. If we want another example, it is only a few weeks since Air France and KLM spent hundreds of millions of pounds on a stake in Virgin Atlantic. Those are not the actions of commercial organisations that believe that Brexit is destroying the British aviation sector. Those who suggest it are simply talking down our country and that is not acceptable. I am therefore very grateful to her for what she says. She is absolutely right. I give her an assurance that the Government will do everything we can to support the sector, to support the people who lost out as a result of Monarch’s collapse, and to continue to ensure we have a strong sector for the future.
Kelvin Hopkins (Luton North) (Lab)
As the MP for Luton North, I represent many of those who have lost their jobs, and I have to say that, had the company been in public ownership—with proper transparency and accountability to Parliament—I suspect that this would not have happened. [Interruption.]
Kelvin Hopkins
My concern is that, when the company collapsed, the assets had almost all disappeared, so there was very little financial value in the assets of the company. Was this to benefit shareholders and owners, and how much money has the state effectively paid out that the owners and shareholders should have been accountable for?
Chris Grayling
The hon. Gentleman is right that the airline did not have the assets at the end—airlines today do not own their planes but lease them. One reason it is difficult to continue to operate an airline like this is that the planes are the property of the lease companies, which take them back immediately afterwards. We clearly have to look at whether there is a better way of doing things, but it is not easy.
It would be relatively easy for an airline abroad that is owed money simply to impound an airliner and make it impossible for us to get people back, so these are not straightforward issues. But is the hon. Gentleman really suggesting that we go back to a time when the state owned everything? Do we want the state to own British Airways, easyJet, Jet2 and Thomas Cook? It is nonsense. Even the most socialist Labour Government of the past would never have suggested that the state own every holiday airline. It is a sign of how extreme its policies have become that anybody on its Benches can seriously suggest it.
Nigel Huddleston (Mid Worcestershire) (Con)
I congratulate the Government on the speedy response to the Monarch situation and on highlighting the resilience of the UK aviation industry—in the private sector—but the Secretary of State will be aware that there has been confusion over who is ATOL protected. Does he agree that more could be done to communicate the benefits of ATOL membership?
Chris Grayling
This is definitely one area we need to look at again. We are already legislating to ensure that people who pay for a flight and hotel separately through an internet organisation can be covered through ATOL insurance. This is an area where we have to do more work. There is, however, a fundamental issue: if we were to put a levy on the cost of an air ticket, we would have to do it on every air ticket in the UK, but many of us on the Conservative Benches get regular representations from regional airports, for example, saying they want air passenger duty cut. This would increase APD, and that is why it is not a straightforward decision, but one we must consider very carefully.
Graham Stringer (Blackley and Broughton) (Lab)
I agree with the Secretary of State that in future situations like this one the Government should look for an orderly wind down, but is that not pie in the sky given the evidence of a conspiracy between Greybull and Boeing to protect their own capital interests against the pension rights of former employees and the people who bought tickets when it was already clear that the airline was bankrupt?
Chris Grayling
The hon. Gentleman should remember that the pension scheme was transferred to the Pension Protection Fund in 2014, when it was sold by the Swiss family that had owned the business since the 1960s, so it is not straightforward to talk about pension rights now. He should not second guess any details of how, why or where the financing package was secured a year ago. It is a matter of record that it involved rescheduling or reorganising the leasing of the aircraft, but had it been able to secure the future of the airline, as we all hoped at the time, we would all be grateful it had happened. It is tragic that that was not the case.
Mary Robinson (Cheadle) (Con)
Almost 500 Monarch staff are based at Manchester airport, and many are my constituents, so I am grateful to hear the assurances that the Government will work with the industry to support staff back into work. Will the Secretary of State outline what more support will be given to our regional jobcentres to assist my constituents who have lost their Monarch jobs?
Chris Grayling
Before it became clear that the collapse was happening, we had pre-meetings across Whitehall between the Departments that needed to be involved, including the Department for Work and Pensions, and Jobcentre Plus has been working with all those affected. That work will continue where necessary. I am glad that if such terribly difficult circumstances had to arise, they arose in a thriving sector with lots of job opportunities. The fact that Jobcentre Plus was able quickly to identify more than 6,000 vacancies for 1,700 people looking for jobs is a good step in the right direction and a tribute to the success of that sector, off the back of what has been a successful economy in recent years.
Ian Austin (Dudley North) (Lab)
Four hundred employees, including skilled engineering workers, are set to lose their jobs at Birmingham airport,. The region can ill afford to lose those skills and the contribution that they make to the regional economy. Will the Secretary of State ensure that his Department redoubles its efforts, and does everything possible to ensure that those people can find equally skilled work elsewhere in the region as soon as possible?
Chris Grayling
I absolutely give the hon. Gentleman that assurance. Securing strong futures for those people has been, is and will remain a priority for us, along with getting the passengers back. As I have said, however, I am encouraged by the number of other airlines that are actively seeking to recruit. As slots become vacant at Birmingham, Luton, Gatwick, Leeds and Manchester, other airlines are already seeking to move in and take those slots, and they will need staff to work on the business as they arrive.
Bim Afolami (Hitchin and Harpenden) (Con)
Will the Secretary of State give further details of what the Government are doing to assist former employees of Monarch Airlines who have lost their jobs as a result of the airline’s collapse?
Chris Grayling
We have had a very early promise on a lot of things. A few hours before the administration came into effect, I spoke to the chief executive of easyJet, who was very helpful. I should express thanks to easyJet for helping us with some problematic routes; for instance, only specialised pilots can fly into or out of Funchal airport.
The chief executive gave me an assurance, and easyJet has given us assurances subsequently, that the airline will hire a substantial proportion of those staff. It is likely to hire 500 very quickly to meet its future demands, because its business is growing rapidly, and I know that other airlines plan to step in and do the same. Jobcentre Plus has already been holding job fairs and airlines have already been going through recruitment exercises, so it is my hope that all those affected will find jobs quickly.
Laura Smith (Crewe and Nantwich) (Lab)
The Secretary of State emphasised that Monarch passengers abroad would be covered until 15 October, but constituents of mine who are due to return on 16 October are worried because there is no information available online. Will the Secretary of State please let me know where they can obtain information, and whether their return is protected or not?
Chris Grayling
The full repatriation exercise lasts for two weeks, and at the end of that time there will be a very small number of people left abroad. We know that, at that point, the sector as a whole will be able to absorb those passengers; it could not have done so a week ago, given the numbers involved. The Civil Aviation Authority will be contacting those people this week and keep its helpline available for a considerable time after the repatriation effort has been completed, and we will work to ensure that they can return home straightforwardly. They will be entitled to refunds through credit cards, through the ATOL scheme, and so forth. The crucial difference is that when the company went into administration the sector could not have coped with the number of people involved, but by next week absorbing the small number of passengers who remain will not be a problem.
Mims Davies (Eastleigh) (Con)
Jobs and opportunities that come from access to regional airports and flights mean a lot to Members in all parts of the House, and, indeed, to my constituents who can access Southampton airport. Will the Secretary of State thank Barclays for supporting my constituents and their families? Members of the Hamble Aquatics Swim Team who were due to go to Lanzarote were reimbursed more than £9,000 so that they could train for county, national and regional championships. Their head coach, Amy Rodger, ensured that more than 20 swimmers and their coaches were able to get over there by working with local television stations and Barclays. Will the Secretary of State also thank the many other companies that have done so much to help our constituents?
Chris Grayling
My hon. Friend’s words speak for themselves. I am very grateful to Barclays for providing that help, and I know that a number of other businesses have done the same. The credit card companies in particular have been very constructive in their dialogue about sharing the cost of the repatriation with us, and Lloyds was especially good at getting out of the traps and working with us. I think that this was a moment when corporate Britain behaved in the right way, and worked alongside us to do the right thing.
Luke Pollard (Plymouth, Sutton and Devonport) (Lab/Co-op)
Having spent five years working for the Association of British Travel Agents and lobbying for greater holiday protection, may I extend my thanks to the people working hard for that and ask the Secretary of State to extend it to travel agents and tour operators? What hit does he expect the Air Travel Trust fund to take as a result of Monarch’s collapse, and can he give an assurance that the ATOL protection contribution will not go up, which would mean holidaymakers having to pay more in future?
Chris Grayling
We will not know exactly how much until we have gone through the numbers in detail with the administrator. We do know that only a relatively small proportion of Monarch customers were ATOL protected, because the nature of the business was mostly flight-only. I will happily inform the House once we have gone through all the details, which will take a bit of time, but it will not be a substantial proportion of the total, because of the small proportion of customers who are covered.
Henry Smith (Crawley) (Con)
Will my right hon. Friend join me in paying tribute to Gatwick-based airlines such as easyJet and Virgin Atlantic for stepping up and offering alternative employment to Monarch employees who now find themselves out of work?
Chris Grayling
I am very grateful to the airlines for the way they have responded, and they have done so in a variety of ways. It was a real team effort at Gatwick, with airline staff, airport staff and others coming together to deal with the immediate issues for passengers, and then really working to get Monarch employees sorted out as quickly as possible. I am very grateful to the staff at Gatwick, as I am to those at all the five airports affected.
Diana Johnson (Kingston upon Hull North) (Lab)
The Secretary of State said in his statement that the collapse of Monarch Airlines was deeply regrettable, so I wonder whether he will support the call by the pilots’ union for a probe into what exactly happened around the collapse.
Chris Grayling
I suspect that there will be exactly such a probe, but I also suspect that it will be led by the hon. Member for Nottingham South (Lilian Greenwood) and her Transport Committee. I do not want to gainsay what the Committee will do, but I would expect a rigorous inquiry, and my Department and the CAA will be very happy to co-operate with it.
Mr Speaker
That was a very speedy recovery from the intoxicating effects of conversation with the right hon. Member for North Shropshire (Mr Paterson), and a very useful guide to new Members on how to perform at a moment’s notice in the way that the hon. Gentleman has done. He did signal earlier that he wished to be called, so I was not picking on him.
Chris Grayling
Of all those involved, I feel most deeply for those who made bookings but have now lost trips and holidays. I very much hope that we can get Monarch staff into employment quickly. I hope that we can get all the passengers back safely and well. For those who have lost bookings, it is a deeply traumatic time, and we heard some very sad stories last week. Anyone who booked with ATOL protection or who booked using a credit or debit card will be able to get a refund. My advice to anyone in that position is always to ensure that they have at least one of those cover options available in case something like this happens again—let us keep our fingers crossed that it does not for a very long time.
Liz McInnes (Heywood and Middleton) (Lab)
Monarch has failed to consult its 1,800 employees on redundancy. What estimate has the Secretary of State made of the costs of compensation for those affected workers?
Chris Grayling
As the hon. Lady will know, there are statutory provisions for when businesses go into administration, because they tend not to be able to consult employees about redundancy. It falls to us to try to sort them out, and that is what we will seek to do. There are statutory provisions for compensation for people in these circumstances, but my hope is that the financial impact on them will be limited, given the number of companies looking to recruit as quickly as possible.
James Cleverly (Braintree) (Con)
Although the distance between Stansted, my local regional airport, and Luton, which is Monarch’s home airport, is relatively small, some people will be displaced much further afield. What plans has the Department put in place to ensure that those who are displaced during the recovery phase can get back to their most local home airport?
Chris Grayling
That will become a particular issue this week. We have brought 80,000 people back, but there are still about 30,000 left. We have emptier planes this week and greater consolidation of planes. We have 747s operating, and clearly a 747 replacing a short-haul Monarch aircraft leaves a gap for seats, so we are bringing flights together and more people will arrive back at a different airport. There will be a coach waiting for them that will take them straight back to their original airport, and the airports are making special arrangements on carpark access and fees to ensure that people do not lose out as a result. The CAA is managing a big bus operation and those people will get back to the place where they started.
Stephen Timms (East Ham) (Lab)
Actually, the fall in the value of the pound was a factor in the collapse, although I agree with the Secretary of State that another factor was the UK ban on flights to Sharm el-Sheikh. Since that ban was introduced, the Egyptian authorities, with UK support, have gone to enormous lengths to improve security at that airport. I believe that every other western country has now lifted its ban. Could we now lift ours before even more people lose their jobs?
Chris Grayling
The right hon. Gentleman will know from his experience in Government that we take security issues very seriously. We have looked exhaustively at the issues around Sharm el-Sheikh. We have not yet taken the decision to resume flying there. I would love us to be able to take it, but we have to be mindful of the security concerns and the risks to the travelling public of the United Kingdom. I assure the right hon. Gentleman that as soon as we feel that we can take that step, we will. We hold back only for good security reasons.
Victoria Atkins (Louth and Horncastle) (Con)
This has been a massive exercise in repatriating citizens and our thanks should go to the Civil Aviation Authority and others that made it happen. Will the Secretary of State please confirm the cost of the repatriation exercise? Are insurers, credit card companies and banks playing their part in reimbursing the taxpayer?
Chris Grayling
We expect the total gross costs of the repatriation to be around £60 million. We will recover money from all those different groups, and I will in due course be able to tell the House exactly how much the taxpayer has contributed. However, my hon. Friend can be reassured that we are very focused on making sure that there is clear burden sharing, and that it is not only the taxpayer who pays.
Stephen Lloyd (Eastbourne) (LD)
I applaud the Government’s efforts in bringing back passengers who were not protected by ATOL. In the modern era of mass travel by air, would it not be sensible to look at legislation around ATOL and cover both hotels and air fares in case something similar happens in future?
Chris Grayling
That will clearly be debated again and has been considered before. The issue is that we would have to apply a levy to every single air fare sold in the UK, whether for a UK airline or otherwise. We could not simply apply a charge to a UK-based airline for which we were responsible—we would have to charge Ryanair, Air France and Emirates passengers as well. Effectively, we would be putting up air passenger duty. I am not saying that we should not do that, but if we were to we would need to use great thought and care beforehand.
Rachel Maclean (Redditch) (Con)
My constituents in Redditch are incredibly hard working—thanks, no doubt, to the Government’s amazing record of job creation. However, they look forward to their well-deserved holidays, and price competition has contributed to their being able to take those breaks. Will the Secretary of State confirm that he sees no risks in the airline market that he ought to be considering?
Chris Grayling
That concern has been raised by the Opposition as well. The first thing to say is that our aviation sector is very strong. If people visit our airports, as I do, they will find that virtually every one will say that this has been a record year in terms of the number of passengers carried and that there have been record days in their history. Passengers are not stopping flying—more and more passengers are flying, and I am confident that that will continue.
I am also confident that we have good airlines that are growing fast: look at the success of easyJet and Jet2. Tour operators are also doing well. I am confident that the sector will grow and develop; there is demand for slots and runway space and there are acquisitions and new investments in new centres such as Jet2’s investment in Stansted. We should be confident about the sector. We can never rule out problems in the future or be certain that no airline will ever run into difficulties again. That is why we have to think through whether we need to take steps to make sure that there is proper protection for consumers. But we should be confident in our sector.
Huw Merriman (Bexhill and Battle) (Con)
I thank my right hon. Friend, his Department and the CAA for delivering the largest ever peacetime repatriation. As he will be aware, the UK insolvency framework does not allow insolvent airlines to continue flying, unlike what happened with Alitalia in Italy and Air Berlin in Germany. Will my right hon. Friend consider looking at the insolvency framework again in that light?
Chris Grayling
We will certainly give some thought to that. It is very noticeable that other airlines have been able to carry on flying in administration. The risk, of course, is that an aircraft could easily be impounded by an international airline. One of the reasons we sought to hire our own fleet was to remove that risk. If we had used the Monarch planes, there was a danger that, if they arrived at an airport and a local creditor decided to take action, the plane might have been unable to return. That is something we always need to weigh in the balance. We need to look at what happened with Air Berlin and Alitalia and see whether there are lessons to be learned, but first and foremost our task should always be to protect passengers whose journeys might otherwise be at risk.
Ms Nusrat Ghani (Wealden) (Con)
Price wars, stiff competition and a change in travel habits all contributed to Monarch’s failure. My constituents in Wealden have been in touch about their holidays and business trips being ruined. Can the Secretary of State confirm that he and his ministerial colleagues have visited returning passengers at UK airports and say what feedback he has received?
Chris Grayling
I met the first flight back at Manchester airport last Monday and my noble Friend Lord Callanan visited Leeds Bradford airport on the same day to meet people coming back. I have had a lot of letters from people who were able to travel back on the repatriation flights saying how grateful they were and how smooth it had been. There are bound to be some hiccups on the way—we had weather problems in Funchal, which led to some cancellations—but in overall terms this has been a very smooth effort and a great tribute to a team of people in the CAA who are not airline specialists, but who have come together to run an airline in a way that was, frankly, enormously impressive.
Andrew Bridgen
Thank you, Mr Speaker. Does the Secretary of State agree that, although every lost job is a human tragedy, the British aviation industry remains robust and resilient? I am reminded of 2012, when British Midland International collapsed, with the loss of 1,200 jobs at East Midlands airport in my constituency. These are very highly skilled people who are quickly absorbed back into the economy. Unemployment in North West Leicestershire remains at a record low of 1%.
Chris Grayling
My hon. Friend is absolutely right. I am delighted that we have a thriving sector, with more than 6,000 vacancies, for which the 1,800 people who have lost their jobs can apply. I am also delighted by the fact that easyJet is saying, “We want to hire 500 of them straightaway. They’re good people; we want them.” I am very confident for their future. All the support they need in the short term is being provided, but I am pretty clear that in a thriving sector those people will have a strong future.
Wendy Morton (Aldridge-Brownhills) (Con)
Quite clearly this has been a huge repatriation and logistical task. Can the Secretary of State confirm, though, what entitlement passengers who have not yet travelled—I am sure most of us have them in our constituencies—have to a refund?
Chris Grayling
We will be continuing to give advice and guidance to those people for some considerable time. We will also be contacting people this week to see who wants and has a need to return, as part of the repatriation exercise. All those who have booked through credit card companies or who have ATOL protection, regardless of how long they are out there for—I am sure a small number will be out there for an extended period—will be able to secure a refund when the time comes.
Iain Stewart (Milton Keynes South) (Con)
As well as reviewing the effectiveness of the ATOL scheme in the light of this incident, will the Secretary of State take the opportunity to look at the providers of travel insurance? Many people travelling thought that they were covered for the collapse of an airline under their travel insurance policy, only to find that they were not.
Chris Grayling
This is something that I will want to take up with the insurance industry. It does seem unfortunate that cover should not include something that happens once in 10 years. This is one area where there is a case for change. It would have made life a lot easier had that been the case.
Kevin Foster (Torbay) (Con)
I welcome the statement and the detail of what the Government have been doing, in particular the fact that 80,000 of 110,000 people abroad are now back in the UK. Can the Secretary of State confirm, though, that we will apply the lessons learned to the legislation currently going through the House to reform the ATOL scheme?
Chris Grayling
We have the advantage of having legislation before Parliament at the moment. If there are short-term measures that we could take, we would certainly be open to doing that, but I do not want us to rush into doing something without doing the ground work properly. We need to look carefully at what has happened, learn the lessons and make any modifications necessary. I assure the House that that is what we will do.
Mr Philip Hollobone (Kettering) (Con)
We should give credit where credit is due; it has been a simply remarkable achievement to repatriate such a large number of passengers in such a short period, and I congratulate my right hon. Friend the Secretary of State, his Department and the CAA on putting this together. Here we are on the first Monday back after the conference recess, and we could have been faced with having 110,000 British citizens stranded overseas. Instead, thanks to his actions, 80% of them are already back and the rest can be confident of coming back on time.
Chris Grayling
I am grateful to my hon. Friend for those kind words. They are a tribute to the work done by people right across Whitehall—nine different Departments and organisations were involved—by those who have gone out to man the departure lounges at airports around Europe and by the people operating the airline. This has been a fantastic effort, they have done a brilliant job for all of us and I am very grateful to them.
Tom Pursglove (Corby) (Con)
What steps is my right hon. Friend taking to make sure that there is no loss in capacity and that excess slots that have now emerged are allocated as quickly as possible?
Chris Grayling
The fact that there is now some debate over the value of the slots as they are taken up by other airlines shows that there is a queue of operators waiting to move in where Monarch has been. We have already heard from Jet2 that it is looking to pick up some of the slack that Monarch has left behind, and I have no doubt that we will see others moving in very quickly as well. Our sector is thriving, those gaps will be filled and there will be lots of flight opportunities in future.
Airports National Policy Statement
Lord Grayling Excerpts(6 years, 11 months ago)
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The Secretary of State for Transport (Chris Grayling)
In my statement on 13 July this year, I said I would set out the next steps of the draft airports national policy statement (NPS) process following the summer recess.
The Government consulted on a draft airports NPS between 2 February and 25 May this year.
We received over 70,000 responses, and work to analyse them is ongoing. I would like to thank everyone who took the time to feed in their views.
In the consultation document, my Department was clear that further work was under way to update the evidence base, including revised aviation demand forecasts and the Government’s final air quality plan. It was intended these documents would be presented for consideration during the initial consultation, but the timing of the general election meant this was not possible.
I am therefore confirming that there is a need to conduct a short period of further consultation to allow this updated evidence to be taken into account. This further consultation will focus mainly on the specific elements of the NPS affected, and is expected to begin later this year.
I appointed the former Senior President of Tribunals, Sir Jeremy Sullivan, to provide independent oversight of the consultation process. I am very grateful to him for his hard work in helping to ensure that the consultation was as open, fair and transparent as possible. Today I am publishing his report on the initial consultation, and can announce that he has agreed to oversee the period of further consultation.
In my statement in July I said that the timing of the election—in particular the need to re-start the Select Committee process—meant we now expect to lay any final NPS in the first half of 2018 for a vote in the House of Commons. This Government remain committed to realising the benefits that airport expansion could bring, and I can confirm that we do not expect this additional period of consultation to impact on the timetable for parliamentary scrutiny of the NPS.
[HCWS119]
High Level Output Specification
Lord Grayling Excerpts(7 years, 1 month ago)
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The Secretary of State for Transport (Chris Grayling)
I am today publishing my high-level output specification (HLOS) and initial statement of funds available (SOFA) for the railway for control period 6, which covers the years 2019 to 2024.
The Government are determined that the railway becomes more focused on issues that matter most to passengers—such as punctuality and reliability. A more reliable railway also plays a critical role in underpinning economic growth and bringing the country together. The Government are committed to taking action to achieve these outcomes.
The HLOS is therefore focused on the operation, maintenance and renewal of the existing railway—the areas of activity that will deliver a more reliable railway for passengers. The Government are already delivering significant enhancements to the railway, including High Speed 2 and Crossrail and expect to continue to invest in the enhancement to the wider rail network in the next control period. In the light of the findings of the Bowe review, which emphasised the need to enable better planning, cost control and alignment with the needs of users of the railway, Government will take forward the funding of these enhancements separately. The Government are developing a new process for delivering enhancements and intend to publish more information on this in the autumn.
On the basis of independent advice from the Office of Rail and Road, as well as from the rail industry, the Government have agreed that an increased volume of renewals activity will be needed over the course of control period 6, to maintain safety and improve on current levels of reliability and punctuality, which in places fall short of the levels that passengers rightly expect. This enhanced programme of renewals will be supported by appropriate volumes of operations and maintenance activity required to maintain safety and improve the reliability and punctuality of train services.
Before committing to the specific levels of funding required, I have decided that the Government require more assurance on the likely costs of the work programme. Network Rail’s progress on improving its efficiency in recent years has fallen short of my expectations. Improving efficiency is vital if we are to maximise the value of taxpayer spending on the railway in driving improvements for passengers and freight shippers.
The Government will therefore carry out further work to examine the approach to setting appropriate levels of maintenance and renewals activity for control period 6 and to improving Network Rail’s efficiency. This will enable me to confirm the extent of Government’s funding envelope through the publication of a statement of funds available by 13 October 2017. This work will draw on a number of sources, including the new independent review of progress on efficiency planning which the regulator has commissioned.
Alongside the publication of the HLOS, I am issuing new statutory guidance to the independent Office of Rail and Road. This sets out my priorities for rail regulation. These include supporting the ORR’s work to improve Network Rail’s efficiency and improving the experience of users of the railway.
I am placing copies of the HLOS and SOFA, and of the statutory guidance to the Office of Rail and Road in the Libraries of both Houses.
Attachments can be viewed online at:
http://www.parliament.uk/business/publications/written-questions-answers-statements/written-statement/Commons/2017-07-20/HCWS86/
[HCWS86]
Rail Update
Lord Grayling Excerpts(7 years, 1 month ago)
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The Secretary of State for Transport (Chris Grayling)
I wish to inform the House about some important developments regarding the rail networks of the midland main line, south Wales and the north of England.
Passenger numbers on the UK rail network have more than doubled since privatisation 20 years ago and our country’s railways need to adapt and change to be able to meet current and future demand. Therefore we are delivering the largest upgrade of the rail network since Victorian times, including modernising rail services and infrastructure on the Great Western main line, midland main line and in the north.
Technology is advancing quickly, and this Government are committed to using the best available technologies to improve each part of the network. New bi-mode train technology offers seamless transfer from diesel power to electric that is undetectable to passengers. The industry is also developing alternative fuel trains, using battery and hydrogen power. This means that we no longer need to electrify every line to achieve the same significant improvements to journeys, and we will only electrify lines where it delivers a genuine benefit to passengers.
These new technologies mean that we can improve journeys for passengers on the Great Western main line in south Wales, the midland main line, and on the lakes line between Windermere and Oxenholme sooner than expected with state-of-the-art trains, instead of carrying out disruptive electrification works along the whole of these routes.
Midlands
The competition to find the next operator for the midland main line is under way. Our goals for the next east midlands franchise are to improve journeys for passengers, drive even stronger economic growth and support investment across the whole region. We want to hear from passengers and local communities about the next rail franchise to ensure it delivers the services that passengers want. I am therefore pleased to inform the House that my Department is today launching a public consultation on the next franchise. The consultation, which will run for 12 weeks from today, will help to inform and develop the franchise specification for inclusion in the invitation to tender. The consultation is available online and will also include a number of local stakeholder events.
The next east midlands franchise will help drive the midlands engine and improve passenger journeys by maximising the passenger benefits of the significant upgrade of the midland main line, the biggest investment in the route since it was completed in 1870. The upgrade will enable reduced journey times and more seats for long-distance passengers during the peaks, as well as more capacity for commuters with dedicated services with longer trains. Journeys will improve from 2020 and, once the full benefits are realised, there will be almost twice as many seats into London St Pancras in the peak compared to today.
The next operator will be required to deliver modern, fast and efficient trains. This includes a brand new fleet of bi-mode intercity trains from 2022, delivering more seats and comfort for long-distance passengers. The provision of these trains will replace plans to electrify the line north of Kettering to Sheffield and Nottingham, improving journeys sooner, without the need for wires and masts on the whole route, and causing less disruption to services. We do not intend to proceed with plans to electrify the line from Kettering to Sheffield and Nottingham, and there will be further investment to come to ensure Sheffield is HS2-ready.
Wales
From autumn 2017, passengers in Wales will benefit from new intercity express trains which will each deliver over 130 more seats, faster journey times and improved connectivity for south Wales to London with 40% more seats in the morning peak once the full fleet is in service.
These innovative new trains switch seamlessly between electric and diesel power, delivering faster journeys and more seats for passengers without disruptive work to put up wires and masts along routes where they are no longer required.
Rapid delivery of passenger benefits, minimising disruption and engineering work should always be our priority and as technology changes we must reconsider our approach to modernising the railways. We will only electrify lines where it provides a genuine benefit to passengers which cannot be achieved through other technologies.
As a result, we no longer need to electrify the Great Western route west of Cardiff. In addition to the new trains, Network Rail will develop further options to improve journeys for passengers in Wales. These will include, but not be limited to:
Improving journeys times and connections between Swansea and Cardiff, and south Wales, Bristol and London
Improving journeys times and connections across north Wales
Direct services from Pembroke Dock to London via Carmarthen on new, state of the art intercity express trains
Station improvements at Cardiff station
Station improvements in and around Swansea including looking at the case for additional provision
I also support a proposal for Wales’ first privately funded railway station at St Mellons. My Department will work with the promoters of the scheme as they develop their plans to the next stage.
The first new intercity express trains will enter service from this October and once the whole fleet is introduced and electrification to Cardiff is complete journey times between Swansea, London and other stations along the route will be approximately 15 minutes shorter.
The north
We are investing in the northern powerhouse, upgrading rail services across one of the country’s largest networks to improve connections between towns and cities. Passengers in the Lake District will benefit from double the number of direct services to Manchester airport from May 2018. From 2019, there will be brand new trains with more seats and better on-board facilities including air conditioning, toilets, free wi-fi and plug sockets, subject to business case.
We have listened to concerns about electrification gantries spoiling protected landscapes. Northern, the train operator, will therefore begin work to explore the possibility of deploying alternative-fuel trains on the route by 2021, improving comfort and on-board facilities for passengers while protecting the sensitive environment of this world heritage site. This trial will pilot an alternative-fuelled train, removing the need to construct intrusive wires and masts in this national park. Journeys between Windermere and Manchester airport will be improved sooner and with less disruption to services and local communities. This replaces plans to electrify the line between Windermere and Oxenholme.
This investment is a part of the great north rail project, which will deliver more frequent trains and new direct services on the west coast main line, with faster journeys and increased frequency into and through Manchester from across the north-west. It will boost access to jobs and new opportunities, growing the northern powerhouse by improving connections between the Lake District and the Manchester airport international gateway.
Train operators and Network Rail will need to work as one to deliver these upgrades and introduce the new fleets in a way which ensures passengers experience better journeys as soon as possible.
Rail franchise schedule
The Government have also today published the updated rail franchise schedule, which includes changes to the timescales for the east midlands, cross country and west midlands rail franchises. A copy of the schedule will be placed in the Libraries of both Houses.
Attachments can be viewed online at: http://www. parliament.uk/business/publications/written-questions-answers-statements/written-statement/Commons/2017-07-20/HCWS85/.
[HCWS85]
HS2 Update
Lord Grayling Excerpts(7 years, 1 month ago)
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The Secretary of State for Transport (Chris Grayling)
I would like to update the House on the progress of High Speed Two.
Phase One of the railway—from London to West Midlands—is progressing well. In February, Parliament granted powers to construct the route from London to Birmingham, including new stations at London Euston, Old Oak Common, Birmingham Curzon Street and Birmingham Interchange, near Solihull. As a result, enabling works on the route, contracts for which were awarded last November, have now started.
In March last year, the tender shortlist for Phase One of the main civil engineering works contracts, comprising bridges, tunnels, embankments and viaducts, was released. These are the biggest HS2 contracts to date. In a clear signal of how work is progressing, this morning I am pleased to announce the decision to award Stage 1 of these contracts, comprising design and construction preparation works, to the joint ventures set out below. Contracts are expected to be signed after completion of the mandatory standstill period. The joint ventures are as follows:
Area South
S1—Euston Tunnels and Approaches—SCS JV (Skanska Construction UK Limited, Costain Limited, STRABAG AG)
S2—Northolt Tunnels—SCS JV (Skanska Construction UK Limited, Costain Limited, STRABAG AG)
Area Central
C1—Chiltern Tunnels and Colne Valley Viaduct—Align JV (Bouygues Travaux Publics, VolkerFitzpatrick, Sir Robert McAlpine)
C2—North Portal Chiltern Tunnels to Brackley—CEK JV (Carillion Construction Limited, Eiffage Genie Civil SA, Kier Infrastructure and Overseas Limited)
C3—Brackley to South Portal of Long Itchington Wood Green Tunnel—CEK JV (Carillion Construction Limited, Eiffage Genie Civil SA, Kier Infrastructure and Overseas Limited)
Area North
N1—Long Itchington Wood Green Tunnel to Delta Junction and Birmingham Spur—BBV JV (Balfour Beatty Group Ltd, VINCI Construction Grands Projets, VINCI Construction UK Ltd, VINCI Construction Terrassement)
N2—Delta Junction to WCML Tie-In - BBV JV (Balfour Beatty Group Ltd, VINCI Construction Grands Projets, VINCI Construction UK Ltd, VINCI Construction Terrassement)
The expected total value of these contracts including both Stage 1 and Stage 2 (the full construction phase) is currently estimated to be worth around £6.6 billion. Stage 2 will commence in 2019 and, along with Stage 1, is expected to support 16,000 jobs across the country. In addition, they are expected to generate 7,000 contract opportunities in the supply chain, of which around 60% are expected to go to SMEs.
HS2 stations at Euston, Old Oak Common and in Birmingham will be central to HS2 and the work needed to develop designs is also well underway. Last week, both the Invitations to Tender (ITTs) for the station design services contracts for all four Phase 1 stations and the Invitation to Participate in Dialogue (ITPD) for a Euston master development partner were released to shortlisted bidders. These are significant milestones. They show how progress is continuing at pace in order to deliver stations that will be embraced by the local communities, drive economic growth and provide seamless journeys for passengers.
We are also making good progress on the rest of the route. Later today, I will be introducing a Bill to Parliament seeking the necessary powers to construct Phase 2a of HS2, from West Midlands to Crewe. Phase 2a will bring HS2 within reach of all the cities in the North that have existing rail connections to Crewe. I will also be updating the House on other developments along the Phase 2 route including decisions on the 2b route from Crewe to Manchester and West Midlands to Leeds.
The progress we are making with HS2 is clear evidence that the Government are delivering on their commitments and are getting on with building the infrastructure needed to build a stronger, fairer, more prosperous Britain.
[HCWS49]