Inter-City Rail Investment

Debate between Baroness Laing of Elderslie and Stephen Hammond

Thursday 9th January 2014 Commons Chamber

[Stephen Hammond]

I am sorry, but I do not have time.

As for what was said by the hon. Member for Nottingham South (Lilian Greenwood), let us have some honesty in this debate. When Labour was in office it crashed the economy, and gas and council tax bills doubled. Had her party been in office today, the average fare would have risen by 11% rather than 3.1%. Moreover, in 13 years, we saw just 9 miles of electrification. Just as we are dealing with the economic mess that was left behind by the last Government, we are determined to deal with the massive infrastructure deficit that we inherited. [Interruption.]

[Madam Deputy Speaker (Mrs Eleanor Laing)]

Order. The hon. Member for Nottingham South (Lilian Greenwood) must not shout from the Dispatch Box. She was listened to in silence for a considerable time, and she must let the Minister finish his speech.

[Stephen Hammond]

Thank you, Madam Deputy Speaker.

According to the World Economic Forum, in 1998—just after the last Conservative Government left office— the United Kingdom ranked seventh in the world for infrastructure spending. By 2009-10, we had fallen to 33rd. I am pleased to note that we are rising again, but there is much more work to be done. The failure of the last Government is epitomised by the fact that, according to the Civil Engineering Contractors Association, between 2000 and 2007, the UK’s infrastructure investment was lower than that in any other OECD state.

Rail is just one part of an unprecedented programme of transport investment that this Government are introducing to drive growth and job creation. As a result of the tough decisions that we made in order to get the public finance mess that we inherited under control, we have been able to achieve the longest period and the largest amount of rail modernisation since the Victorian era. That will mean faster journeys, more seats, improved access to stations, better freight links, and a rail network of which the country can be proud. The Government are delivering their vision of a railway that will be more financially and environmentally sustainable, support growth and deliver benefits for both passengers and freight customers. It has been agreed on both sides of the House that since privatisation the railways have been successfully carrying more passengers, more safely, on many more and newer trains, many of which arrive more punctually, and that levels of passenger satisfaction have been higher than ever before.

At the heart of the growth to which I have referred, and at the heart of today’s debate, are the historic inter-city routes, which provide a vital link between the towns and cities of the country. The impact of those routes is clearly significant: they provide links for communities, businesses and freight, and drive the country’s economy. They are important because they do exactly what a railway should do. They serve local communities, they serve people, and they serve markets. They move people to jobs, connect industry with its markets and suppliers, and connect regions with one another. The high capacity and reliability of inter-city networks is crucial.

As was pointed out by the hon. Member for Redcar, it is easy to think of inter-city services as merely connecting one end of a route to the other, but it is important to recognise the importance of intermediate stops and the rail networks that spread out from them. They provide the inter-regional and intra-regional connectivity that allows us to keep the country moving. Good inter-city rail services make it possible to live in one place and work in another, or to live in one place and socialise in another. They open up opportunities for employment throughout the country. We must therefore continue to invest in increasing, extending and enhancing services that are already improving rapidly during the current period of investment.

As many Members said, the inter-city network is all too often seen only in terms of connections to London. It must not be so. It is a driver of change in the economic geography of the country, decreasing journey times and improving links between all our nation’s major cities and regions, providing agglomeration benefits for business, increasing productivity and, importantly, providing access to new markets. The major cities of the north—Liverpool, Manchester, Leeds and Sheffield—will soon benefit from the huge investment in the northern hub, a transformative package of rail enhancements radiating from Manchester.

Investment needs to flow not only from the Government and Network Rail. We must continue to find ways to adapt our contracts and contacts with the private sector to ensure that we work in partnership with them, allowing them to bring real innovation through their own investments in projects that will genuinely benefit their passengers. The west coast main line is a great example of successful inter-city investment. Working in partnership with Network Rail, over £9 billion has been spent to modernise the route and improve journey times from 2008. That investment has been so successful that in order to meet the increased demands and expectations of passengers, further investment on the franchise has been necessary. Some 28,000 more seats per day were provided on the line by 106 new Pendolino carriages procured when the direct award was negotiated with Virgin at the end of 2012. To those who say no benefits come from direct awards, I say I suspect that the passengers who fill those 28,000 extra seats may well feel there is some benefit.

This Government are also investing a huge amount in electrification. Our rail investment strategy included our plans for the “electric spine.” This major investment links the core centres of population and economic activity in the west, east midlands and Yorkshire with the south of England. It will complete the full electrification of the midland main line out of London St Pancras and provide electrification of the lines from Nuneaton and Bedford to Oxford, Reading, Basingstoke and Southampton. All this will provide faster, more reliable services on many important strategic routes, and not just routes into London. This is massive investment from this Government on a scale not previously seen. By 2020, three quarters of the passenger miles travelled in England and Wales will be on electric trains, compared with 58% today and under 40% previously.

The Department has big plans for the inter-city East Coast and Great Western franchises. At the heart of revitalising those railways is the £5.8 billion intercity express programme, which will deliver 122 new state-of-the-art trains across those vital routes. The majority of the construction for those new trains will be carried out at Hitachi’s new factory in the north-east. This investment is great news for British manufacturing, creating more jobs for the area and strengthening the supply chain in the UK. This programme, together with the major investment in Thameslink in the south-east, will open up the opportunity for a cascade of rolling stock to other parts of the network, where, as we recognise, it is needed. This is all aimed at upgrading rolling stock and improving inter-city services.

As we have seen in recent weeks, regardless of the levels and types of investment, some situations will always prove challenging. The rail network’s performance and resilience has, with some exceptions, been sorely tested by the severe weather this autumn and winter and done reasonably well. There is no room for complacency, however, and I hear the points made by Members from the south-west about the spend on resilience and I am sure that will be borne out in Oxfordshire and a number of other places. The Government are determined to ensure we have the best resilience in place.

The Government’s commitment to investment in inter-city rail services cannot be in question. We must work with the industry to ensure investment is used to its maximum potential across the country and delivers real benefits for passengers and taxpayers. This significant investment in our inter-city routes will transform travel across the nation, and future capacity challenges must also be met. Only by committing to this new route and this investment—we are making the hard decisions and putting the economy right—can the Government continue to promise a programme of investment in inter-city routes unparalleled and unseen before.