(6 years, 7 months ago)
Commons ChamberI will give way three more times, then I really must make some progress.
I listened carefully to my right hon. Friend’s remarks about climate change, which will clearly require an upgrade to surface transport. Will he confirm whether the statement lays out the polluter pays principle and that the developer will be expected to pay a contribution to the surface transport upgrades?
Absolutely. Improvements to nearby roads and paying for parts of the rail projects that are due to happen are built into the plans. It is absolutely essential that that is the case. Heathrow airport will make a substantial contribution to that.
(6 years, 8 months ago)
Commons ChamberThe first thing to say is that I could have done what has been done previously and made a stock market announcement at 7 am this morning, and not come to the House first. I actually chose on this occasion to come to the House first to provide the information, albeit price sensitively, in the best possible way. I am disappointed that the hon. Gentleman does not believe that that is a more appropriate way to handle such an issue than making a 7 am announcement to the stock market, as has been past practice.
The hon. Gentleman talks about nationalisation. Let us deal with this issue head on. Labour has spent the past few months desperately trying to take us back into the ambit of the European Union. Let me explain this to him very simply: his policy on rail nationalisation is illegal under European law. It is all well and good Labour Members arguing that we should stay in the single market and have a second referendum and all the rest of it, but his version of nationalisation is not legal under European law, so why would we take him seriously when he talks about this? I am interested in what works, and that is what we are doing with today’s announcement.
The hon. Gentleman harks back to the period of public operation of this railway. During that period, fewer staff were employed, it generated less money for the taxpayer, and passenger satisfaction was lower than it was subsequently. So it was not some great nirvana period. Yes, things were done in a way that moved things beyond the collapse of National Express in 2009, but the performance of the team currently running the railway has been good. It is not their fault that the parent company got its sums wrong. We should pay tribute to the team who work on that railway and say that it is not their fault that I have had to make today’s announcement.
The hon. Gentleman keeps going on about a £2 billion announcement. That is another example of why Labour does not understand any of this, because otherwise he would realise that no bail-out has taken place, any more than Labour bailed out National Express. This railway line is continuing and will continue to make a substantial contribution to the taxpayer. When he talks about a £2 billion bail-out, he does not understand the finances of the railway. It is not true today and it was not true when National Express collapsed. The reality is that this is the best way to take forward what has been a difficult situation on this railway on a path that I believe in and I think the public believe in: it is better to bring back the operation of track and train, and that is what we will do.
The hon. Gentleman raises the issue of the railcard having been scrapped. That would justify his not believing everything he reads in the papers.
I welcome my right hon. Friend’s statement. As I understand it, with the formation of LNER there is no bail-out and nor is there any renationalisation, which will be widely welcomed. On the basis that taxpayer value has been protected, will he say what extra investment might be available to LNER, whether there will be opportunities for private sector investment and whether he will open up the line to open-access competition?
The latter point is really important. We want open access to continue. This line has some excellent open-access operators. The system we are putting in place will do nothing to preclude that from happening. I am very clear that that has to continue and that the interests of both the open-access operators and the freight companies needs to be protected as we take this forward. I assure my hon. Friend that that is what will happen.
I want to continue to see private investment in our railways. The Labour approach would mean that each year the railways were competing for public capital with schools, education and the rest. That is something that Labour Members do not quite understand. The railway gets more investment through a partnership between the public sector and the private sector than ever it would through their renationalisation policy. Going back to the days of decline and failure under British Rail is their way for the future. We just have to look at what is happening in France, where people are desperate to move away from that model because it is not working.
(7 years ago)
Commons ChamberThe private sector has generated almost £6 billion of private investment over the past decade, providing new trains, upgrading stations and transforming the passenger experience.
I thank my right hon. Friend for that answer. The irony will not be lost on him that public sector satisfaction in the railways is declining as Government influence is at its highest since rail privatisation. What discussions has his Department had with Network Rail to change procurement and design practices so that the private sector can have more influence in funding and financing future projects?
I want to see both. We have just announced the biggest investment programme in our railways—over the period 2019 to 2024—since the steam age, including £20 billion of renewals. That is crucial: one of the reasons why we talk at Question Time about train delays is that the infrastructure in many places desperately needs renewal, which is why we are spending £20 billion on that. It is also important that we bring in additional private finance alongside that public investment, and I have been discussing extensively with Network Rail how we can make that happen.
(7 years, 2 months ago)
Commons ChamberI understand why this is such a serious issue, and I would be delighted to extend an invitation to the hon. Lady to come to the Department to meet Ministers and officials to talk about what is clearly an important matter.
We are now conducting the kind of review of the financing of Crossrail 2 that we conducted on Crossrail 1—the Montague report. I am keen to see the project progress in lock step and parallel with northern powerhouse rail, and I make it clear that they are both important projects. I also make it clear that the London contribution cannot be an IOU paid for by the Government. We have to make sure that we have a robust, absolutely reliable funding package so this project can go ahead in good shape.
(7 years, 3 months ago)
Commons ChamberI expect to set out our further plans on the rail industry very shortly.