Future of Rail Manufacturing

Lord Beamish Excerpts

Tuesday 23rd April 2024 Westminster Hall

[Grahame Morris (Easington) (Lab)]

I beg to move,

That this House has considered the future of rail manufacturing.

It is a pleasure to serve under your chairmanship, Sir Gary. I must declare an interest as a member of Unite the Union and chair of the Unite parliamentary group. I am also a member of the RMT and ASLEF parliamentary groups and I am on the Transport Committee.

For several years, industry organisations such as the Railway Industry Association, trade unions and manufacturers have urged timely action to prevent significant job losses in rail manufacturing here in the UK. The industry employs over 30,000 people in the United Kingdom and contributes at least £1.8 billion annually in gross value added. It is currently facing a very dangerous—indeed, critical—situation. The Minister, a former Chair of the Transport Committee, is very familiar with the situation. I have engaged with him on a number of occasions recently and in the Select Committee, so I am fully aware that he understands the nature of the problem.

In December last year, I raised an urgent question following evidence given to the Transport Committee by Nick Crossfield, the managing director of Alstom—Alstom is based in Derby. He impressed on the Committee the need for urgent action from the Government to expedite the bidding process for new British-manufactured trains. Four months later, it is clear that the Government have been too slow to prevent potential job losses at the Derby train manufacturer.

Similarly, I met workers at the Hitachi train manufacturing facility in Newton Aycliffe, next door to my constituency, who are also members of Unite the Union. They warned that we could see redundancies as early as June this year if the Government continue to drag their heels on extending the contract to build further trains for the west coast main line.

British railways are rooted in the north-east of England. The Stockton and Darlington railway was inaugurated in 1825 and was the world’s first passenger railway. It also linked the coalmines near Shildon in County Durham to the River Tees at Stockton, facilitating coal exports from Teesport. The Stockton and Darlington railway’s success, alongside growing demand for transport, spurred the development of a national railway network. The railways transformed Britain, enabling all social classes to travel further, and the network was developed to move coal from thriving collieries in County Durham to global markets. However, County Durham continues to struggle with the legacy of the loss of its coal industry, with limited skilled employment due to insufficient investment in levelling-up efforts, alongside a lack of a coherent industrial strategy under successive Conservative Governments.

In 2015, Hitachi opened a plant in County Durham, bringing skilled jobs to the region and reviving the north-east’s rail manufacturing tradition after 90 years. The 750 skilled jobs at Hitachi, and about 1,500 jobs in the supply chain, are fundamental to the success of the local economy.

Today, the excellent Sheffield Hallam University has released its “State of the Coalfields 2024” report, which shows evidence of a lack of jobs and businesses in the former coalfields despite recent growth. Job density in former coalfields is only 57 employee jobs per 100 working-age residents; that compares with a national average of 73 jobs per 100 residents, and an average in major regional cities of 88 jobs per 100 residents. There is a disparity, and a long way to go.

The report from Sheffield Hallam illustrates, as clear as day, the ongoing struggle for prosperity in former coalfield communities.

[Mr Kevan Jones (North Durham) (Lab)]

Would my hon. Friend agree that the issue is not just the number of jobs that Hitachi has brought to the region but the improvement in the skill base? Hitachi is training apprentices and increasing the skill base locally through investments in higher education and other things. That helps not only Hitachi but the regional economy.

[Grahame Morris]

Absolutely. My right hon. Friend makes an excellent point about the broader benefits to the economy. Indeed, the loss of rail manufacturing in County Durham or Derbyshire would devastate their respective regional economies and threaten British rail manufacturing.

Alstom, Hitachi, Siemens and CAF—Construcciones y Auxiliar de Ferrocarriles—remain the only train manufacturers in the UK. A similar situation arose with the steel industry. To a reasonable person, it would seem illogical for the Government to permit the UK to lose its capacity to build trains, especially as our existing network is in need of modernisation.

The Minister and I have fenced about the age of the rolling stock and trains, but the UK still operates trains built before privatisation, with the average age of trains on the Chiltern line estimated to be 30 years; that was in March last year, from the Office of Rail and Road report. Additionally, nearly half all operators use trains over 22 years old. The Railway Industry Association has urged the Government to upgrade or replace approximately 2,600 vehicles by 2030, and to renew around 1,650 diesel trains that will be 35 years old after 2030.

The industry-wide consensus is that our rolling stock is outdated and inefficient. Therefore, my question to the Minister is: why are the Government not protecting British rail manufacturing, especially given the rising demand for new trains to enhance the passenger experience and to meet our net zero targets? In relation to our environmental targets, all 2,898 diesel and 912 bi-mode trains in the UK emit carbon dioxide and nitrogen oxides, with nitrous oxide—N₂O—having various health impacts and being up to 280 times more potent than CO₂ in warming the planet over a 20-year period. That is according to the latest Intergovernmental Panel on Climate Change report to the United Nations.

To achieve net zero by 2050, a solution must be found to replace diesel trains, which are currently used by 14 operators—especially since only 38% of the network is currently electrified. My constituents, who travel on unreliable, second-hand ScotRail Sprinter trains—no offence to my friend from Scotland, the hon. Member for Paisley and Renfrewshire North (Gavin Newlands)—built in the 1980s, find it inconceivable that the rolling stock companies’ profits are sky high while our UK-based rail manufacturers are crying out for orders. Taxpayers are forced to travel on substandard trains purchased with Government funds, while subsidies remain at twice pre-pandemic levels. The system is inefficient and does not serve the taxpayer or the travelling public.

There are needless links in the chain. The Government should streamline the system by directly purchasing trains and bypassing the ROSCOs or rolling stock companies. Indeed, RMT president Alex Gordon and general secretary Mick Lynch have been vociferous, voicing concerns about leasing costs, which have risen by over 30% over the past five years while rail industry staff costs have remained static.

A decade ago, leasing rolling stock accounted for about 13% of train operating companies’ costs; today, it accounts for 25% or a quarter. Does the Minister think that is fair or are the Government protecting profits when other areas of the network, including the staffing elements, are facing dramatic cuts?

Clearly, there is something wrong with how we procure rolling stock in Britain. Despite needing modern, carbon-neutral and sustainable trains, the Government have ignored warnings from both Alstom and Hitachi. The Rail Industry Association warned the Government that recent administrations have been a “canary in the coalmine” before the potential decimation of train manufacturing in the United Kingdom. Unite the Union warns that the industry’s performance relies heavily on Alstom Transport and Hitachi Rail, which hold 55.3% of market share.

The industry’s fate is dependent on key players like Hitachi and Alstom. However, recent forecasts indicate a bleak outlook, with revenues projected to decline at a rate of 8.1% annually over the next five years. Hitachi and Alstom face challenges, as their order books require clearing past orders before they can commence construction and setting up production lines for the HS2 trains, which are currently 18 to 24 months behind schedule.

Government intervention must go beyond rhetoric to provide tangible support to the industry. We are not asking for a bail-out—just a commitment to honouring existing contracts, and to establish a sensible industrial strategy for the industry. Beyond extending existing contracts, a focused industrial strategy is imperative. Research conducted by Make UK reveals that 99% of manufacturers support the need for an industrial strategy. Six in 10 cite the lack of an industrial strategy as a factor affecting growth in the manufacturing industry. Some 87% believe a strategy would provide their businesses with a better long-term vision on which to decide investment in future employment plans. To prevent another Alstom or Hitachi scenario, we must reassure the industry that the Government are prioritising its interests. I am hopeful that the Minister is going to give us some positive news, but the consequences of inaction are dire. Jobs and livelihoods are at risk, and it is time now for some decisive action.

The industry requires a steady stream of orders to sustain manufacturing and maintenance bases, alongside a proactive approach to replacing retiring engineers. We must abandon costly leasing, opting for direct purchases through Government procurement to bolster UK train manufacturing, which must be central to a long-term rail and industrial strategy, driving economic growth, innovation, and meeting our future transport needs.

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[Mr Kevan Jones (North Durham) (Lab)]

May I say what a pleasure it is to serve under your chairmanship, Sir Gary?

I congratulate my hon. Friend the Member for Easington (Grahame Morris) on securing this very important debate. He and the hon. Member for Sedgefield (Paul Howell) said that the north-east has a long tradition in rail manufacturing, and it is one we should be proud of, but it also has a future. It had a future when we secured the investment in the Hitachi factory in Newton Aycliffe, which supported not only 700 highly paid jobs but the supply chain. People should remember the history of how we got Hitachi in the north-east. I pay tribute to Durham County Council; the NDA, which the coalition Government abolished, and Phil Wilson, who was the MP for Sedgefield and a great champion of getting that investment.

Why did Hitachi come to Newton Aycliffe? It saw opportunities in the tradition, but also the opportunities in the workforce. It came there because it saw the growth in the UK market, as well as in exports to Europe. Well, Brexit has dealt a hammer blow to that, but Hitachi was still determined to contribute to the development of the UK rail industry. Remember that the Japanese do not take short-term decisions; they take long-term investment decisions. They invested because they saw a pathway of work in the UK.

The hon. Member for Sedgefield talked about the challenge and about not making the issue political. Well, I am sorry, but this is a political decision. As he said, it is about ensuring that we have a rail strategy, and that is about UK factories, including Newton Aycliffe, having consistent orders. The answer is in the Government’s hands. He is a member of the governing party, and he cannot say that there is no solution. There is. The solution is ensuring that there is a drumbeat of orders, not just for Newton Aycliffe but for the rest of UK rail manufacturing, so that we get long-term supply chains in place and retain skills.

Hitachi quite clearly has a gap coming up for two years before HS2 comes on stream. I am sorry to tell the hon. Member, but we cannot treat the skills that have been developed at Newton Aycliffe like a tap, turning them on when we want them and turning them off when we do not. We have to invest in them and keep them there. Those people’s livelihoods are important. If the next generation of rail workers are to come through, we need the investment and the certainty that those young people will have a future, not just necessarily at Hitachi but in the wider rail industry.

[Paul Howell]

I will probably surprise the right hon. Member by agreeing with him. The way in which the Japanese and Hitachi work is all about generational levels of training, investment and continuity. I endorse his point about the need for skills to be invested in and continued over long periods of time.

[Mr Jones]

I agree with the hon. Member, so why does he not criticise his own Government, who are not investing in the long-term strategy we need? We have had it in the shipbuilding industry and we have a shipbuilding strategy that makes that exact point: we need a drumbeat of orders. That the Government decide to put warships over to Spanish and not UK yards makes a mockery of their commitment to such long-term strategies.

If we are serious about levelling up, this is it in action. Levelling up is nothing new; the last Labour Government saw the need for it. It was the reason why we were involved in the NDA and why we attracted Hitachi to the north-east. I must say that it takes a lot, having dealt with Japanese politicians and industry for a number of years, for them to make the public statements they have made about the future of Newton Aycliffe. It is in the Government’s hands to ensure that we have the continuation of skills. Without that, it has a bleak future.

I pay huge tribute to the management and staff at Newton Aycliffe. With my hon. Friend the Member for Easington, I met representatives of Unite the union the other day and they are fully committed to the future of the plant. They are the people who want to ensure that not only they but future generations have jobs. The answer to Newton Aycliffe’s future is in the hands of the Government, who can make sure that in the next few years we have a continuous stream of orders going through, but this is not just an issue for Newton Aycliffe; other plants face it as well. It comes down to the sad fact that for the last 14 years of Conservative Government, there has been a lack of industrial strategy across the UK. This is a good example not only of how that lack of strategy will endanger our great jobs in Newton Aycliffe but of how hollow all the nonsense spoken about levelling up over the last few years has been.

Leamside Line

Lord Beamish Excerpts

Tuesday 8th February 2022 Westminster Hall

[Mr Kevan Jones (North Durham) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Hollobone. I congratulate my hon. Friend the Member for Washington and Sunderland West (Mrs Hodgson) for securing this important debate. I do not propose to go over all the reasons why it is so important to reopen the Leamside line—she has eloquently covered that—but we need a degree of realism and honesty about why we are in the current situation.

The reopening of the Leamside line has cross-party support, cross-business support and cross-community support. The North East Combined Authority, representing local authorities south of the Tyne, and the North of Tyne Combined Authority support it, along with Transport North East. I congratulate Transport North East on its 2021 to 2030 transport plan, which sets out a comprehensive and ambitious plan for the region’s transport. It talks not just about rail, but about other modes of transport as well, which will not only lead to economic benefits for the north-east but improve the air quality in the environment in which we live. The only people who do not support the plan are the Government, who left it out of their integrated rail plan, announced towards the end of last year. In doing so they said that the project could be part of a city region deal that they hoped to negotiate sometime in the future. I suggest that that is part of the Government’s wider agenda on devolution—it is jam tomorrow so long as regions agree to tinker around with their governance structures.

In the levelling-up White Paper, which I read over the weekend, there was a very good history lesson on the origins of the Venetian city state. One of its main themes was leadership, but I would argue that we have leadership in the north-east in the ambitious plan being put forward by Transport North East and the united support of the political leadership across parties and businesses. The only thing missing in support of that plan is the Government. Instead, we have the vague ideas that were talked about in the levelling-up White Paper last week of devolving powers without resources, or resources being devolved but having to be bid for from central Government. That is not proper devolution; it is a different control mechanism from Whitehall.

Instead, there is the inefficient and expensive Beeching reversal fund. From the two examples that have been awarded so far in County Durham, its only main benefits seem to be to provide expensive press releases for local Conservative Members of Parliament or to fund rail consultants. People’s expectations are raised, and we know from some of the examples that they will never be met—it is not achievable.

Let me give the finest example of that, and I am glad that my neighbour, my hon. Friend the Member for North West Durham (Mr Holden) is here to hear it. It is the proposal to extend the Tyne and Wear metro system to Consett. The feasibility study has so far cost £50,000. The price tag for delivery given in that study is £640 million, and it will rip through either my constituency or that of my hon. Friend the Member for Blaydon (Liz Twist). That price tag is more than the entire £500 million that has been allocated to the Beeching reversal fund. If that were not bad enough, the Lib Dem-Tory council in County Durham is committed to push the project on to the next phase, spending more money and employing more consultants, knowing that it will never be achieved.

[Mr Holden]

Does the right hon. Member agree that that is plain to see the support of the Labour-led Gateshead Council for the project between Consett and the Tyne, as well?

[Mr Jones]

They have clearly not read the report. If the hon. Gentleman tells me that any Government are going to provide him with £640 million of public money for a railway to Consett, he is deluding himself. That is not going to happen. The point is to be honest with people. I know that he came out with that flippantly when he did not think he would get elected as the Member for North West Durham, but he did and, therefore, he feels he has to follow through. It is not going to be achievable.

I object to the fact that the public are being deluded, and that more public money has frankly been wasted on highly paid consultants. The hon. Member for North West Durham referred earlier to the Weardale line, which is another example of similar amounts of money being suggested. That line will not be achievable, because the amount of money being argued for will not be forthcoming. Why not just be honest with people?

The strategy is clear: throw around all these projects to give the impression that something is happening when it is not. We have a real example with the Leamside line where, if the Government concentrated on putting in the money, it would create benefits. The hon. Member for Darlington (Peter Gibson) is right that it would improve his constituency and those on the east coast main line, due to capacity. However, I wish he would not argue about the new timetable for the north-east coast line, which would mean that an hourly service would be introduced from Chester-le-Street. The hon. Member and the Tees Valley Mayor complained that that would reduce the number of trains to Darlington. I am sorry; we need an hourly service and that needs to be addressed. It would be addressed if we got the project.

[Peter Gibson]

My job as the Member of Parliament for Darlington is to stand up for the services that reach my constituency, just as I am sure the right hon. Gentleman would fight if the services in his constituency were reduced. I have no hesitation in continuing that fight for the services in my constituency.

[Mr Jones]

I have no criticism of that, but he speaks up and gets the entire thing shelved for six months. That means that my constituents do not get the hourly service from Chester-le-Street that they were promised. That shows how logic has gone out of the window in arguing for the overall benefits on the east coast mainline, not just for one particular town that happens to have a Conservative Member of Parliament.

[Peter Gibson]

Will the right hon. Gentleman give way again?

[Mr Jones]

Yes.

[Mr Philip Hollobone (in the Chair)]

Order. This is a debate about the Leamside line. Four other Members seek to contribute to the debate. I am sure Mr Jones is almost finished and will conclude his remarks with reference to the line we are debating today.

[Mr Jones]

I will, but these issues are important, Mr Hollobone. Since 2010, the north-east has had the second smallest increase in transport funding, at £17 per head. The Institute for Public Policy Research report of 2019 showed that transport spending in London was seven times higher than that in the north-east of England. We need a degree of honesty from the Government. Why do they not trust the elected representatives of the north-east to set priorities, and why not be clear why they are not reopening the Leamside line? That is a clear political decision.

If we are to believe the rhetoric on devolution, it should be about listening to the united voice of the political and community leadership in the north-east and agreeing the funding for the Leamside line. The Government can come up with as much smoke and mirrors as they like to argue why they are not funding it. The ultimate reason lies in the Government’s political will to do it.

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[Mary Kelly Foy]

I thank the hon. Gentleman for that intervention. [Interruption.] Yes, there were probably a number of reasons, to do with the preceding Government and some of the rules that were in place. All I can say is that my hon. Friend the Member for Washington and Sunderland West has been fighting for years and years.

[Mr Kevan Jones]

We were unpeeling the mess of rail privatisation and the underinvestment in the system, which led to things such as Potters Bar. We did get major investments, including the improved electrification of the north-east main line.

[Mary Kelly Foy]

I thank my right hon. Friend for that. In the north-east, we are too often treated as second-class citizens and as less deserving of investment. Yes, the plans would cost money, but the best things do. I believe that Durham deserves the best and our county is worth investing in. I only wish the Government thought the same. Sadly, Ministers seem to find it easier to let the north-east down than to level it up.

[Mr Richard Holden (North West Durham) (Con)]

It is a pleasure to serve under your chairmanship, Mr Hollobone. I pay tribute to the hon. Member for Washington and Sunderland West (Mrs Hodgson) for bringing this debate to the House today.

Like other Members, I was very proud to be elected on a manifesto of levelling up. The right hon. Member for North Durham (Mr Jones) was right to say that my election in 2019 was a slight surprise, but if he had spent more time on the ground rather than grandstanding down here in Westminster, he probably would not have been as surprised. He would have understood the issues affecting local people in my constituency, and he would not have seen such a massive decrease in his share of the vote at the last election.

I am very supportive of the Leamside line, which is vital to the levelling-up agenda for the north of England. Alongside education and employment opportunities, transport and transport infrastructure are really important parts of the agenda. I am here to support the Leamside line because it is vital for the whole north-east, particularly because it would help to improve capacity on the east coast main line. It may also play into one of the schemes in my constituency, the Weardale line, which was supported by my hon. Friends the Members for Sedgefield (Paul Howell), for Bishop Auckland (Dehenna Davison) and for Darlington (Peter Gibson). We are looking into extracting minerals from Weardale—lithium exploration is currently under way—and the Leamside line could enable direct rail transit and avoid the need for freight to trundle through the constituency of the right hon. Member for North Durham via road. Instead, it could go via rail, bypassing all the issues. There is a broader strategic aspect to the line, particularly with the gigafactories opening around Nissan, which I was happy to visit not long ago with the Prime Minister.

The Leamside line is important for access to the local area as well, as hon. Members have said. It is about capacity, but it is also about enabling people in our communities to move readily between them and to access employment and education opportunities that are not there at the moment. As the hon. Member for Newcastle upon Tyne Central (Chi Onwurah) and others have said, enabling greater freight service use would also help with the reliability and greater frequency of services—perhaps even the services to Chester-le-Street that the right hon. Member for North Durham mentioned.

The Leamside line has to be part of a wider transport plan. That plan cannot just be about rail; it has to be about road as well. That is why I am delighted to support the A68 changes that have been proposed in a levelling-up fund bid by my hon. Friend the Member for Bishop Auckland. I hope that, down the line, we will also be able to support the A693 upgrades for the right hon. Member for North Durham.

I will address a couple of broader issues that were raised about levelling up the country. It is vital that we look at all sorts of schemes. If some hon. Members had spent the two decades since they were elected actually campaigning for reconnections to places such as Stanley, Annfield Plain and Consett, we might be a lot further advanced in these plans than we are today.

[Mr Kevan Jones]

The hon. Member knows as well as I do that the main answer for a lot of communities in his constituency and mine is the bus network. The fact is that because of the Conservative Government, who have been in power since 2010, Durham County Council has lost £224 million in central Government allocation, and that has led to bus services and subsidies being withdrawn. I am sorry, but I will not take any lectures off him about transport in Durham.

[Mr Holden]

If the right hon. Gentleman listened to one of his own local councillors, who represents Chester-le-Street and with whom I campaigned to get the feasibility study going—the former Labour leader of Durham County Council—and if he listened and worked with people like me, rather than listening to people who want to live in the past as he does, he would be on side now.

[Mr Jones]

£640 million.

[Mr Holden]

The right hon. Gentleman shouts from a sedentary position, which he should not do. He could stand up and try to make another intervention if he wished. It is true that these schemes would be expensive, but if he had been campaigning for them for a longer period of time, rather than carping from the sidelines, as he is doing—

[Mr Jones]

Will the hon. Member give way?

[Mr Holden]

No, I will not give way again; the right hon. Gentleman has had plenty of time to have his own say during the debate. If he had campaigned for these measures for a longer period of time, perhaps we would be further advanced. Of course it is about buses. I am fully supportive—

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[The Parliamentary Under-Secretary of State for Transport (Wendy Morton)]

It is a pleasure to be able to respond to the points that have been raised during today’s debate, Mr Hollobone. First, though, I thank the hon. Member for Washington and Sunderland West (Mrs Hodgson) for securing today’s debate.

Improving transport connectivity in the north-east is an important topic. It is vital for the Tyne and Wear region, as we have heard, for the north of England and for the United Kingdom. I thank the hon. Lady for providing a coherent, well-reasoned argument for reopening the Leamside line between Pelaw junction and Tursdale junction, and for highlighting the potential local, regional and national benefits involved. I also thank hon. Members from around the Chamber for their invaluable contributions today, and for sharing with me a little bit more about the rich rail history of the north-east, including in their constituencies. I am reminded of my great-grandfather, who many years ago worked on the railways in County Durham—I have yet to find out exactly where, but I will find out.

I will start by reassuring the hon. Member for Washington and Sunderland West and all Members present that the Government are wholeheartedly committed to delivering on their vision of levelling up the British economy and building back better. Improved transport connectivity within and between our great cities is fundamental to that vision, unlocking the economic potential of the northern powerhouse, building back better from this awful pandemic, and ensuring that the Tyne and Wear region and the north of England play a key role within a resurgent UK economy. That is why my Department, led by my right hon. Friend the Secretary of State—who is also the Cabinet Minister responsible for the northern powerhouse—is at the forefront of making that vision a reality.

Since 2010, over £29 billion has been invested in transport infrastructure in the north, but we want to go further and faster. In November 2021, we published the £96 billion integrated rail plan for the north and the midlands, our biggest ever single Government investment in Britain’s rail network. The IRP is a strategy focused on bringing communities in the north and the midlands closer together, boosting inter-city connections and improving east-west links—the journeys that people are often most likely to make. The plan delivers a modern network for the whole of the country, benefiting small towns alongside our big cities far sooner than previously planned, with many improvements in this decade.

That means we are providing more seats between London and the north-east than in previous proposals, with opportunities for further increases. Previous proposals would have reduced connectivity between destinations south of York and the north-east. HS2 trains to Newcastle and York could only have been accommodated at the expense of existing services, potentially reducing or removing connections between the north-east and Doncaster, Newark and Peterborough. Now, with extra train paths from the north-east to London via the east coast main line compared with previous proposals, and with a Cross Country-type service to Newcastle likely to continue running via Doncaster, there is scope to retain improved connectivity where appropriate. Investment in the east coast main line will ease the bottlenecks that we have heard about today and provide improved segregation between passenger and freight. Journey times from London to Darlington would also be cut by 15 minutes compared with today, bringing journey times closer to the original HS2 plans, but delivered much earlier.

Importantly, the IRP included a specific reference to the Leamside line, which we are discussing today, acknowledging that the Government have carefully considered proposals to reopen that line, most recently in the form of bids for development funding through the restoring your railway ideas fund. On the basis of available evidence and value-for-money analysis, the Government consider that the case for reopening the Leamside line would be best considered as part of any future city region settlement. The north-east will be eligible to work with Government to agree a funding settlement with the city region sustainable transport settlement programme once appropriate governance arrangements are in place.

[Mr Kevan Jones]

Why are the Government wedded to linking this vital investment to rejigging their arrangements for the region? The Minister has heard today that it is supported across all political parties, both here and in the region. Why are the Government wedded to that, when there is really no need to do it? They should just give Transport North East the money it needs.

[Wendy Morton]

If the right hon. Gentleman will let me continue with the CRSTS point, I will come to a further point about the absence of a new devolution deal, which will perhaps help address his question.

The city region sustainable transport settlements represent a significant investment of £5.7 billion in local transport networks, predominantly in the north of England. The settlements that will be agreed by central Government are based on plans being put forward by Mayors and local leaders, and they will help to drive forward the economies of city regions, support levelling up and decarbonise transport. In the absence of a new devolution deal, or until a new deal is reached, the seven constituent local authorities in the North East Joint Transport Committee will continue to receive transport funding as currently, including highways maintenance funding, funding from the integrated transport block, and funding received in the final year of the transforming cities fund in 2022-23.

In the meantime, and in response to the IRP recommendations, I understand that Transport North East remains in regular contact with my officials on its plans to undertake a number of further Leamside line studies, including one to develop a new business case for the South Tyneside and Wearside metro loop, with a view to building towards an updated business case for a reopening that maximises the benefits to passenger and freight services across the whole region. I would strongly encourage such engagement to continue, and I hope that local stakeholders will work together to establish a pragmatic and phased strategy for taking forward this important local scheme.

[Mr Jones]

I am sorry, but the Minister has not answered the question. She is talking about co-operation and working together, but the region is doing that already. She is basically saying that unless we agree to some type of devolution mechanism for the governance of the region, we will not get the money. Why link the two together? There is no need. There is unanimity and leadership among all councils and partners in the region now, so let’s just get on with it.

[Wendy Morton]

I think I was very clear in my response to the right hon. Gentleman, when I set out the situation with regards to the CRSTS, which was set out in the IRP, and then explained how the funding currently flows through that giant committee with the seven constituent local authorities.

I will now turn back to the Leamside line in a bit more detail, and to the restoring your railway programme. I know that the hon. Member for Washington and Sunderland West and several other local MPs present were disappointed to hear recently that the proposal to reopen the Leamside line did not receive funding through the latest round of the Department’s restoring your railway ideas fund, and I absolutely sense the enthusiasm and passion for the project in Westminster Hall today. As part of the levelling-up agenda, the Government pledged £500 million for the restoring your railway programme in January 2020 in order to deliver our manifesto commitment and to start reopening lines and stations. That investment will reconnect smaller communities, regenerate local economies and improve access to jobs, homes and education.

Although our restoring your railway expert panel noted that the Leamside line proposal had demonstrated potential, it is important to note that the ideas fund has had a very high level of interest. Some 141 unique bids were received across the three rounds. Of those, 38 were successful and are being supported to develop a strategic outline business case, including three schemes in the north-east. I note the remarks of my hon. Friend the Member for Sedgefield (Paul Howell) on the importance of improving connectivity for residents of Ferryhill, and I can confirm that the proposal for a new station at Ferryhill, which is near the Leamside line, was awarded development funding in November 2020 as part of round 2 of the ideas fund, and that Durham County Council recently submitted its strategic outline business case. The Department will confirm next steps for the scheme in the coming months.

My hon. Friend the Member for Darlington (Peter Gibson) asked about the Weardale to Darlington line. The reopening of that line was also a successful idea in round 2 of the restoring your railway fund. A business case on that is currently being developed and is due in December.

Although the IRP has grabbed the headlines, we continue to work with partners on a number of rail schemes that will benefit those living and working in the north-east. In January 2021, for example, we announced £34 million to progress plans to reopen the Northumberland line to passenger services between Newcastle upon Tyne and Ashington by the end of 2023. As part of our new stations fund, Horden, just outside Durham, received £4.2 million towards the delivery of its new station. On 29 June 2020, the station opened to the public and has reconnected the towns of Horden and Peterlee, which previously had no access to the rail network.

We are also investing £1.2 billion in a programme of infrastructure enhancements for the east coast main line. Those upgrades are vital to improve the service on the railway for the tens of thousands of passengers, including hon. Members, who travel along that route. Alongside the brand-new Azuma trains, those upgrades will help to deliver journey time, reliability and capacity improvements.

Elsewhere, Network Rail has recently started on-site works on the £18 million phase 1 redevelopment of Sunderland station, including a new southern entrance and an enhanced southern concourse. The transforming cities fund is providing £95 million towards the delivery of the metro flow project to extend the Tyne and Wear Metro, with Nexus taking ownership of an existing freight line. That will improve frequency, capacity, resilience and connectivity, and will generate an additional 1.7 million passenger journeys.

We recognise the importance of the Metro to the local population of Tyne and Wear, which is why we have recently provided Nexus with a £336 million fleet replacement grant for the purchase of new rolling stock, and an additional £30 million for the construction of new depot facilities. The Metro has also benefitted from the Government’s covid-19 financial support packages, too.

Finally, I want to underscore the importance of the integrated rail plan, which was published in November 2021. It brings a whopping £96 billion of investment for the north and the midlands—the biggest ever single Government investment in Britain’s rail network. It is important that we do not lose sight of ongoing investments. I am genuinely grateful to colleagues for this very insightful debate, and for sharing with me the perspectives from their communities. I hope that my response has demonstrated to the hon. Member for Washington and Sunderland West that my Department recognises the importance of improving rail connectivity in the north-east.

Draft Electric Vehicles (Smart Charge Points) Regulations 2021

Lord Beamish Excerpts

Wednesday 8th December 2021 General Committees

[Mr Kevan Jones (North Durham) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Robertson. I have a few general points to make that relate specifically to what the Minister said. The present Government have gone into some type of academic competition to see who can be greener than green, and they have set the ambitious target of 2030 as the date when no non-electric vehicles will be sold. However, let us be realistic; most of our constituents do not buy new cars. They will be reliant on petrol, diesel or hybrid cars for quite some time. Certainly a lot of my constituents, and others in rural communities, rely on heavier vehicles—diesel, mainly—for work, farming, and other things.

I have not yet seen a technology that is going to replace some of those vehicles. We all need to be realistic, and although the Government’s ambition is to be lauded, the reality is that 2030 will not be a sudden cut-off date whereby everything is going to change. That will not be the case—in certain areas, diesel, hybrid, or alternatives such as hydrogen-powered vehicle are going to be the answer rather than electric vehicles.

The Minister talks about the consumer. In certain areas—take North Durham and Easington for example—it may be easy for someone to install a charging point in a leafy, detached or semi-detached house, but in a terraced street in Horden or Craghead, how are we going to install an electric charging point without a succession of cables running across the street to charge people’s cars? I do not think enough thought has gone into this. Many people will have to rely on public charging points rather than installing them in their own homes.

The same applies to inner cities, to people living in blocks of flats, for example. Are we to have cables dangling from a six-floor tower block down to an electric car in the car park? Of course not. If we are to get to a situation where we have only electric vehicles, how are people going to access those charging points? That brings us on to the issue about competition, because those individuals will not have a choice to install a charging point at home and then look for the cheapest tariff. They will be reliant on going to a garage, a local council facility or some other body that sets up charging points. They could be at a disadvantage, because they will not be able to shop around for the cheapest tariff. That needs to be thought about as well. There is not just the added cost, for many of these people, to acquire an electric vehicle, which they may not do for many years. As I have said, many of our constituents do not buy brand-new cars—

[Mark Pawsey (Rugby) (Con)]

The right hon. Gentleman is talking about people—often living in terraced houses—being able to charge their cars. Many of them will be able to charge at work. There are enlightened employers who are providing charging points. I will give as an example Cadent, which is setting up in my constituency a new office development where there will be charging for people at work. There are ways of getting around this issue.

[Mr Jones]

I applaud those employers, but let me examine what the hon. Gentleman is suggesting. Let us say that someone lives in Stanley in my constituency, in a terraced street in Craghead, and they work at the local Asda supermarket, for example. Certainly they could drive their car there, but will all employers be queuing up to provide charging points? A lot of charging points would have to be developed. Actually, only certain people will be able to access such provision. Some enlightened employers may well provide charging points, but we need to think about the individuals I am talking about, because there is going to be a poverty trap for some of these individuals, who will not have the choice to go for cheap tariffs or deals on their electricity accounts, because they will not physically be able ever to put in a charging point at home. That needs to be thought about.

Another issue is that local authorities and car parks are putting charging points in car parks, but some of them have cut-off times when those car parks are closed, for perfectly good reasons, so they will not be open to constituents who do not have access to charging points at home. That will be a particular issue, I think, in rural communities.

[Mary Robinson (Cheadle) (Con)]

The right hon. Gentleman is developing a really important point. Has he considered the possibility for the future of people using community charging points? In exactly the same area that he describes in his constituency, a member of the community might be able to rent out their own charging point to enable those who cannot put one on their own property to use that community one.

[The Chair]

Order. Before we continue, I point out that we are getting a little wide of the motion, which is about the actual make-up of the points, which involves smart functionality and the specified cyber-security requirements. I have let this debate go on for a few minutes, but perhaps we could get back to the main point in just a moment.

[Mr Jones]

I would not challenge your ruling, Mr Robertson, but the point is that it is the smart technology that allows people to get different tariffs and cheaper rates, and the people I am talking about will be at a disadvantage.

The hon. Member for Cheadle makes a good point, which I would support; I would have no problem with what she suggests. But again, will people have to drive and leave their car overnight at a community charging point in order to get the cheaper rates from that smart meter, rather than having access to them? I doubt whether they will do that, because there would be security issues in relation to the vehicle and things like that. However, the initiative that the hon. Lady suggests is a good one.

Before I go on to security, I will talk about wi-fi, because it is a related issue in terms of smart technology. The explanatory memorandum says:

“Charge points will rely on a network connection to meet the smart requirements within the legislation, for example using Wi-Fi.”

That is great—if people have access to wi-fi. As my hon. Friend the Member for Wythenshawe and Sale East said from the Front Bench, it is patchy, to say the least, in some areas and certainly in rural communities. If we are not careful, it will mean that parts of the country, especially rural communities—I know certain parts of my constituency where wi-fi connection is not good at the best of times—might be disadvantaged, because they will not be able to connect their smart meter to the wi-fi network.

It is okay to agree on the regulations, and I will come to electricity grids in a minute, but there has to be a holistic approach to how things will work. I accept that if someone does not have access to wi-fi or the coverage is intermittent, the meter will still work—that is what the regulations say—but some people will be put at a disadvantage. Again, that needs to be thought about.

I turn to cyber-security. I accept that the regulations say that cyber-security needs to be taken into consideration, but I have a direct question for the Minister. Who is monitoring the components that are going into the smart technology? Following Huawei’s involvement in the telephone network, we found that there could be—I know there is a lot of nonsense said about it—an issue with cyber-security because of the components. I would like to understand who is monitoring the components going into the smart meters, because otherwise we could open up our networks to potential cyber-attack.

I would also be interested to know what the market is, because one of the issues around Huawei was that the Chinese had come to dominate the market over successive years, as Huawei and two other companies were providing part of the technology. Do we have robust enough components and smart metering companies providing the technology, to ensure that there is a real market in which the consumer has choice, which obviously gets cost down, and, more importantly, that there is investment in technology and cyber-security?

The regulations say that the Department for Digital, Culture, Media and Sport looked at this issue. I would be interested know whether the components and structure of smart meters have been looked at by the National Cyber Security Centre to ensure that not only the components but the technology and how it works are as robust as possible. That could lead to a vulnerability: if someone got into a network and could close things down or disrupt them in some way, that could have a devastating effect like we have seen recently in the United States, where there was cyber-hacking of the petrol network that supplies fuel. The principle is the same. There, the hackers got in and stopped the pumping of petrol through pipelines. An equivalent of that would be if someone could get into the network and disrupt charging points. Their maintenance and ensuring that the components are safe will be very important for the future; otherwise there could be vulnerabilities, which would be an issue.

Finally, I want to talk about the resilience of the network. As my hon. Friend the Member for Wythenshawe and Sale East said, it is fine to have electric vehicles and charging points, but it is no good having an electricity grid that is not robust, as we have seen in parts of the north-east in the last few days. People did not have electricity for 10 days, with some even experiencing their 11th or 12th day without electricity. Again, this is important, and I would like to understand how the issue will be linked to the urgent need to look at the resilience of the electricity grid system, as I have called for this week.

I do not oppose electric vehicles, but we need to get realistic about how quickly this will happen and how safe it will be. More importantly, we should not end up with a two-tier system whereby only some consumers have access to cheap electricity for charging.

[Grahame Morris (Easington) (Lab)]

I want to briefly raise an important point about that disparity, particularly in relation to people who are less well off. My understanding is that VAT is applied to electricity drawn from community charging points at a rate of 20%, whereas if someone is fortunate enough to have a charging point on their drive, VAT is payable at only 5%. That makes a massive difference. I stand to be corrected, and I look to the Minister for guidance. It is an issue that should be of concern to us all.

[Mr Jones]

My hon. Friend raises a very good point. If that is the case, it is another example of a market where those who can afford least will pay more. That cannot be right. In the gallop towards the nirvana of net zero that the Government are trying to achieve, we cannot create situation where markets will be fixed so that those who can least afford to pay will pay more. Our considerations should not be just about charging points but the whole issue—network security, affordability and some practical issues about where these charging points will work and where they will not.

[Trudy Harrison]

I fear that we strayed considerably from the technical aspects. As interesting as it was, I recommend that those interested perhaps attend Westminster Hall debates for a comprehensive discussion on the wider aspects of EV charging.

To respond to some questions, the regulatory requirements are aligned with the British standard for energy smart appliances PAS 1878 and build on relevant existing international and European standards. I am more than happy to write to the right hon. Member for North Durham with a comprehensive response on the cyber-security aspects.

On charging, there are 26,000 publicly available charge points, of which 4,900 are rapid chargers. We know more needs to be done, but we are working with local authorities, and I encourage Members across the House to work with me to help their local authorities roll out the necessary charge point infrastructure, which must match, as the hon. Member for Wythenshawe and Sale East said, the considerable interest in electric vehicles.

The draft regulations are an essential step in ensuring the success uptake of electric vehicles and, therefore, the decarbonisation of transport. They are particularly about the technical capability to take part in smart charging and assist with managing the electricity system, while saving money on energy bills. This is the first step.

[Mr Jones]

Will the Minister give way?

[Trudy Harrison]

I am afraid I will not, because I know votes are imminent. Work will continue so that consumers can fully access smart benefits and participate in the transition to a flexible system.

[Mr Jones]

On a point of order, Mr Robertson. I thought the purpose of scrutiny was to ask questions that the Minister responds to. She is just reading out the civil service brief in front of her, which is not good enough.

[The Chair]

It is not for me to decide what the Minister says.

Transport for the North

Lord Beamish Excerpts

Wednesday 24th November 2021 Commons Chamber

[Andrew Stephenson]

Transport for the North has never been a delivery body, it is not a delivery body, and it is not becoming a delivery body. Opposition Members seem to get hot under the collar about these technicalities when in actual fact, we are getting on with electrification. The midland main line electrification will deliver significant benefits sooner than anticipated. I gently remind the Opposition that in the 13 years of the last Labour Government, they managed to electrify only 63 miles, compared with the 1,100 miles already electrified under this Government.

[Mr Kevan Jones (North Durham) (Lab)]

The Minister will be aware that a lot of the north is further north than York. In the north-east, there is political consensus and support from business and Transport for the North for the reopening of the Leamside line to get extra capacity on the east coast main line, which is needed. That is clearly being ignored. Can the Minister tell me where that project lies, or will it just be shelved and forgotten about? I urge him to stop trying to con people in the north by giving pots of money out to fantasists’ projects such as the railway line up to Consett, which will cost £640 million. I would rather have the money concentrated and spent on transport, and not on just backing consultants.

[Andrew Stephenson]

The right hon. Gentleman again makes a compelling case for the Leamside line. Many colleagues across the House, and many of the regional stakeholders in the north-east that I talk to, continue to make that case. It is not funded as part of the integrated rail plan. However, the Department for Transport is keen to continue working with local stakeholders to see how it could be delivered. I remind him, though, that within the £96 billion there is £3.5 billion for improvements to the east coast main line, which will significantly reduce journey times from the north-east of England down south.

UK Maritime Sector

Lord Beamish Excerpts

Thursday 16th September 2021 Westminster Hall

[Sir George Howarth (in the Chair)]

Before we begin, can I encourage Members to wear masks when they are not speaking? This is line with current Government guidance and that of the House of Commons Commission. Please also give each other and members of staff space when seated and when entering or leaving the room.

[Mr Kevan Jones (North Durham) (Lab)]

I beg to move,

That this House has considered the UK’s maritime sector.

It is a pleasure to see you in the Chair, Sir George. May I first draw the House’s attention to my declaration of interests? I am also chair of the all-party parliamentary group for shipbuilding and ship repair. I thank the Backbench Business Committee for allocating time for the debate, and the 16 Members from across all parties in the House who supported the application.

It is right that we meet today, in London International Shipping Week 2021. This is an opportunity to discuss the maritime sector, which is worth some £46 billion to the UK economy, ranging from shipbuilding and ship repair to ship brokerage in insurance, in which we are world leaders. It is an opportunity to speak up for the sector, which we need to do. I am a passionate believer in a bright future for this country, and the sector supports 1 million more jobs than air and rail. Further, 95% of UK imports and exports are transported by ship.

During the pandemic, we took it for granted that we could order on Amazon or similar sites, and that the package would arrive, but few people consider how that package actually comes to their doorstep. I know Mrs Jones certainly does not give much thought to that. However, it is important, and other aspects are in play—48% of our food supplies come through the maritime sector, as does 25% of our energy needs.

The sector is vital to the resilience of our economy and is also a wide-ranging industry. Ports, for example, generate £600 million in private sector capital each year. It is a source of highly skilled, well-paid jobs. There is an important issue here across the industry, which is mentioned in the briefing note I received from the National Union of Rail, Maritime and Transport Workers: we must invest in those skills and ensure that we have not only individuals with the right set of skills, but the right numbers of workers. As the RMT quite rightly points out, its membership is an ageing population. It is important that we focus on that and make the sector attractive to young people as an industry to come into.

Internationally, the sector will be worth around £3 trillion by 2030 and it is a great source of exports from the UK. Indeed, many businesses throughout the UK are providing not only products for the marine sector around the world, but services. My own region, the north-east, has a long tradition of service industries working around the world. When the Dubai flight from Newcastle recommences at the end of November, marine engineers will be flying all round the world to service ships, but their companies are based in the north-east. It is important that we recognise that fact.

The sector’s problem, certainly in shipbuilding and in other areas, is that there is a view among the public that this is a smokestack industry—an industry of yesteryear. It is quaint that we are involved, but the sector is not the future. Well, nothing could be further from the truth. I do not know how we can do this—the debate obviously allows Members to highlight the issues—but we must promote the sector and say that it is not only important to our economy in the present but can be more important in growing our economy in the future. That is where the Government come in; they have a key role to play in.

Let me turn to the shipbuilding and ship repair sector, where there have been welcome moves by the Government, such as the national shipbuilding programme. We have a shipbuilding tsar—the Defence Secretary—and to be fair to him, I think he is committed to this, but does he actually believe that we can be a world-leading shipbuilding nation again? I think we can, with the right support.

It is a mistake to think that there is any shipbuilding industry around the world that is not reliant on the state—either directly owned by the state or provided with huge subsidies. We should not get into the mindset that if we have to put money into the shipbuilding and ship repair industry or help it with finance, that is somehow a bad thing. It is a good thing if we can grow the industry. The Koreans do not bat an eyelid at putting in huge amounts of money, nor do our European neighbours—the Norwegians, the French, the Germans or anyone else.

The other key issues are port infrastructure, which will be important, and skills. I will talk later about research and development, because the next thing that will change radically in this area is the green agenda. This country has an opportunity to get ahead and be world leaders there.

I welcome the national shipbuilding strategy, but we are still waiting for the refresh, which was promised in August. Its main emphasis—this is self-evident to anybody who knows the industry—is that the industry needs a drumbeat of work running through it. The strategy committed to a 30-year drumbeat of work, but we must ensure that that is a reality, and the Ministry of Defence, which is obviously constrained by the Treasury, is still not laying out that clear pathway for the industry. We saw that with fleet solid support ships, which I will refer to later.

There have been some welcome moves in defence and elsewhere, whereby people are looking at how the UK shipbuilding industry underpins prosperity. The Royal United Services Institute study of aircraft carriers said that 36% of the money that went in came directly back to the UK taxpayer in tax and national insurance, and that is not counting the knock-on effect of the local economic boost generated in those areas. We should not just look at the top line when we are considering contracts; we should look not just at the price, but at how that money comes directly back to the Exchequer.

We need a whole-Government approach to ensure that, when we procure ships, we look to the UK. There was an announcement last week or the week before about Border Force’s new cutters. The existing ones were built in Holland, and I think one was built in Finland or Estonia. That is a £200 million contract, and the default mechanism should be to get them built in the UK. If 30-odd per cent. comes straight back to the Exchequer, that is an opportunity.

A throughput of work is important because that allows industry and business to invest. It is a way to draw in capital to the industry. The problem is that the Ministry of Defence is still in competition mode, which no other country in the world is into, so we have a farcical situation with a fake competition going on between four consortia for the FSS contract. We had a great example of how to do it when we procured the aircraft carriers. Yes, there was a shotgun marriage between various UK yards to provide them, but it worked.

Let us look at those contracts. There was a lot of controversy about the cost, but the build was on time, on budget and world beating. There is nothing like it. We should be proud of that. That was an opportunity to get a consortium of companies together to produce world-beating ships, but what did we do? We broke up the alliance afterwards, which was absolutely shocking. It should have continued.

From the point of view of the taxpayer, should we give out contracts to various companies no questions asked? No, we should not, but we should have a partnership approach rather than competition. The partnership approach should ensure that we have a skills agenda and that we get value for money. Also, the partners put their own shareholder capital into the business. I was speaking to businesses this week at DSEI, the defence and security equipment international exhibition. They do that, but they want certainty. We have the strategy in a nice glossy document, but there is an old mindset of false competition. If we can get that drumbeat of work running through the industry, we will be world beating not only in providing great first-rate ships for our Royal Navy, but in being able to compete for work regarding other vessels. That will be key.

I am not talking about only the bigger yards. The Wight Shipyard Company, which recently won a Queen’s award for international trade, is a small company on the Isle of Wight that produces great vessels. Companies such as that should be the first call, rather than throwing contracts open to international competition, because no other country would do that. There is certainly an opportunity to look at that sector for Border Force ships. Again, that would give security to individuals.

We need some joined-up thinking. We need to ensure that the Treasury not only looks at every single contract, but that the work is there for the long term. The easiest thing in terms of the build programme would be to get on and order the FSS vessels. If we did that, we would have a throughput of work in Rosyth and other places, and we would retain skills. An important thing in the shipbuilding report is that if we are to retain skills or get an influx of new skills into the industry, we need a continuation of work. What we do not want is stopgap areas where we are not employing new apprentices and the workforce get older and older. That point was made by the RMT about its members who work on ships. Oversight is needed. What other skills do we need and in what areas? That is a role for Government as well.

[Anthony Mangnall (Totnes) (Con)]

I am sorry to interrupt. The right hon. Gentleman makes an excellent point about the skills that we need to create a workforce who can work in the sector. I am interested in his thoughts on retrofitting, because a lot of merchant vessels out there need to be retrofitted with modern technology that allows us to meet our green ambitions. That goes hand in hand with the way in which we want to train a new generation of skilled workers, especially on tackling climate change.

[Mr Kevan Jones]

The hon. Gentleman speaks with a great deal of knowledge, and he raises an interesting point. I think the understanding is that we cannot ever compete with the Koreans or others in the far east, because they will do the work cheaper. He knows as well as I do that the country that is doing more retrofitting than anywhere else is Norway. Let us be honest: Norway is not paying poverty wages to its workforce, and it has different overheads from other countries, so if Norway can do it, we can do it, but we need a strategy for that. I will come to green shipping in a minute, but the hon. Gentleman is right to say that there is a huge market. New green technology will come in, but a lot of it will be retrofitted to existing vessels.

That brings me to research and development. What we need from the Department for Business, Energy and Industrial Strategy is an R&D fund that is ringfenced for the industry, because that would ensure that we got the innovation we need. One area that I have spoken to several Members about is hydrogen, which will need a large amount of R&D. Some good companies are already doing that type of work, but we perhaps need to provide them with Government assistance and access to capital.

We have some great brains thinking about green technology in shipping, but I fear that we will get foreign investment coming in to buy out some of those companies and to provide the capital, but they will then take all that abroad. What we need to do—it can be done by the Government—is give support to the new technology here in the UK, so that we can retain not just the technology, but the jobs that will be done now and in the future in a host of areas in green shipping, as well as the new technologies that will come through. I accept that some of those might not work, but we should be brave enough to invest. It is not a great scandal if, at the end of the day, something does not work. It is important that that is done, which is why marine research and innovation need to be at the forefront of any initiative we undertake.

We have the maritime enterprise working group, but it remains on a non-permanent basis. I do not wish to criticise the Minister, because he is passionate about the sector, and about aviation as well. If I remember correctly, he is a bit of a plane spotter when it comes to knowing different types of aircraft. He announced the £20 million investment in the clean maritime demonstration competition, which he described as a turning point. That was welcome, and it is great that he did it, but he must get more money out of the Treasury for the sector. If we do not get more money to the sector, we will be at a disadvantage.

The opportunities are there. We talk about the carbon targets that we want to meet, which are good. If we do this right, however, we can get jobs out of it as well, so it is important that we invest now and that we ensure that the talk about net zero and so forth has some real teeth. It would be sad if we had new and innovative companies working in the sector, but the technology went abroad, and we ended up importing it or allowing other countries to develop it. That technology will be very important.

Within this new agenda, we must take a legislative stance as well. We are a world leader in working with the International Maritime Organisation and others on standards and regulations for the future. Those will be new concepts, so ensuring that we have regulations and international governance that are in our favour, not that of the Chinese and others, will be important. I do not underestimate the Chinese in particular, in terms of their wanting to have international rules that favour their industries rather than ours, so it is important that we play a key part in that process.

I will finish where I started. This is an industry of the future. We need to talk more about it, and we need to invest in it. Yes, the private sector involvement is hugely important, but if Government money and strategies can be put in place at the key point, they could be huge levers, not only to lever in more private sector capital, but to grow the sector. Perhaps we just need to say to people, “Just think when you are ordering things—how do they get to your doorstep?” That is the basis of it.

I am a passionate advocate for the sector. It is not yesterday’s industry; this is the industry of tomorrow. What it needs is a direct and clear strategy, and money behind it. Now is the time to provide those things.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Transport (Robert Courts)]

It is very good to see you in the Chair, Sir George. It is also a great pleasure to follow the hon. Member for Wythenshawe and Sale East (Mike Kane), who always manages to quote poetry in his speeches and make me feel a very flat speaker in contrast.

I congratulate the right hon. Member for North Durham (Mr Jones) on securing this truly timely debate on the UK maritime sector. He speaks with enormous enthusiasm, experience and expertise on the matter, and I am grateful to him for everything that he has put before us today. I entirely share his passionate enthusiasm for the sector and agree that it has a very bright future. I thank him for his comments. As it happens, I agree with a great deal of what he said—not quite everything, but a great deal.

[Mr Kevan Jones]

Careful—the reshuffle is not over yet. [Laughter.]

[Robert Courts]

That is a good and timely point. The Government will be relieved to know that we do not agree on quite everything.

I can think of no better moment to discuss this issue than during London International Shipping Week. The right hon. Member is absolutely right that, to quote another of his phrases, the maritime sector is not some “quaint” industry that plays a historic role in our past. This is very much an issue of the present, as we see in London International Shipping Week, which is the second-biggest international gathering this year, I understand, after COP26. It is the highlight of the maritime year and shows that not just the capital but the whole of the UK is the best place in the world to do maritime business.

Maritime business is very varied. As my hon. Friend the Member for Totnes (Anthony Mangnall) rightly pointed out, services are a major part of it as well. It is, of course, seafarers and shipbuilding, but it is also the much wider services side of things. He is quite right to draw attention to that.

I reassure my hon. Friend the Member for Waveney (Peter Aldous) that he need not fear: the maritime sector is not overlooked and never will be, certainly for as long as I am in this position. I appreciate that I do not know how long that will be, as everyone would say. Perhaps the greater reassurance is that, for as long as the Prime Minister, for whom this is also a major priority, is here, the sector will not be overlooked.

I start with the issue of decarbonisation, which has clearly been a major part of the debate today. I would suggest that this country is leading the way on this. We have announced the winners of the clean maritime demonstration competition, a £20-million fund to develop novel zero-emission technologies. It is the biggest competition of its type that the Department for Transport has run, so I ask hon. Members to bear that in mind. The right hon. Member for North Durham mentioned hydrogen; my hon. Friend the Member for Thurrock (Jackie Doyle-Price) mentioned Windship. They have asked for demonstrators, essentially. That is what we are seeking to do: to decide and demonstrate what the likely technology is going to be.

We can disagree—we will have to agree to disagree—on whether this is turning point, but I suggest that it is a welcome way forward. I know that hon. Members all accept that, and London International Shipping Week is a great time to showcase the competition. It shows the innovation that is required and that exists, and it also the investment that we are putting into it from both industry and Government—it is key that it is a partnership. We hope that the demonstrators will be a springboard for bolder projects that are yet to come.

It is absolutely clear that there is no shortage of ambition in the sector with regards to greening the sector. That is important for the two reasons that hon. Members have stated: for emissions, clearly, but also, as the hon. Member for Glasgow South West (Chris Stephens) said, for protecting the environment—cleaner in both senses. He is quite right to draw attention to that, and I am grateful to him for doing so.

I will spend a little bit longer talking about shipbuilding, which has been a major part of today’s debate. Shipbuilding will very much be a part of our next chapter. The UK has a long, illustrious shipbuilding heritage. The hon. Member for Strangford (Jim Shannon), who is no longer in his place, spoke movingly and vividly of Harland & Wolff, and the hon. Member for Glasgow South West spoke passionately for Govan, one of the great shipyards of the UK. Together, we have built some of the greatest, most iconic vessels that have ever graced the waves. Shipbuilding remains an integral part of our manufacturing sector, sustains thousands of jobs across the UK and brings millions into the economy, as we have heard.

[Mr Jones]

Will the Minister give way?

[Robert Courts]

Once I have agreed with the right hon. Gentleman one more time, if I may. He asks whether we believe that we will become a world-leading shipbuilder. Yes, we will.

[Mr Jones]

Will the Minister inform the House whether he has any indication of when the refresh of the national shipbuilding strategy will be produced? I know that is in the hands of the Ministry of Defence, and the MOD’s idea of summer—or any season, frankly—bears no relevance to anything that we would think, but I would appreciate some indication because the industry is keen to get on with it.

[Robert Courts]

I cannot give the right hon. Gentleman the precision he would like, but it will be before the end of the year. I hope that provides some indication of going forward.

The industry has historically suffered around productivity and under-investment, and we need to become more competitive on the international stage. Government support is, of course, vital to achieving that aim. It is key that we work in partnership with the sector to reinvigorate its fortunes and those of the wider supply chain, which we have heard so much about today. With that in mind, the new post of shipbuilding tsar—who is, of course, the Secretary of State for Defence, as the right hon. Member for North Durham knows—has been created. That is to support UK industry to enable it to step up and become more productive and innovative. As part of that, a vital step forward has been announced this week: the creation of the National Shipbuilding Office.

The right hon. Member for North Durham spoke of the Carrier Alliance. He is quite right that it has been a fantastic project and that it showcases the best of the UK, but I would suggest that it is also slightly different, given that it is a once-in-a-generation major product. We are looking at something that requires ongoing, routine investment in shipyards and that leaves a legacy, because we need to build on the legacy of the shipyards to have that drumbeat of ships that we all wish to see and to provide that for the future.

That is what the National Shipbuilding Office is looking to do. It will be the strategic centre driving this change across Government and the industry. In other words, it will do precisely what my hon. Friend the Member for Waveney rightly asked for—as, indeed, did the hon. Member for Strangford—and avoid the siloing that my hon. Friend the Member for Thurrock rightly referred to.

That is what the National Shipbuilding Office is intended to do. It is to bring together all the Departments that hon. Members have referred to, but then add industry to ensure that it is a key team effort. That will, of course, support innovation—to ensure that skills are also aligned—and the supply chain. It will outline the vision for the UK’s shipbuilding enterprise, and the strategy that I referred to in answer to the intervention from the right hon. Member for North Durham.

A good example of the way the country can showcase its real innovation is the new national flagship, which is a sign of the Government’s determination to support prosperity, jobs and skills in the UK shipbuilding sector. The right hon. Gentleman mentioned Wights, the shipyard company on the Isle of White. I was at the boat show in Southampton yesterday, and met with RS Sailing, which is developing a green, electrically powered, rigid inflatable boat, and with the marine division of Barrus and Bruntons Propellers—highly efficient propeller technology—to give a few examples. The Society of Maritime Industries event, earlier this week on HMS Albion, brought together all those industries, and others.

Companies such as that, with technology such as that, could be showcased in this new national flagship, which is a sign of the Government looking to provide a showcase for technology, and be part of the drumbeat of ships, so they would understand when the Government were procuring new vessels. A major part of that is the MOD’s Type 31s and Type 26s, all the way through to our naval support vessels. However, we also have civilian vessels—ice patrol, ocean surveillance, and, of course, research. The RRS Sir David Attenborough is the latest example of those very high-quality ships being produced by the UK. A new fleet of Home Office cutters is also being considered, should funding be confirmed, with the intention of securing UK value for that.

I will talk about the DFT’s fleet for a moment, too. That fleet is often overlooked, although it is one of the largest civilian fleets. It is operated by our general lighthouse authorities to ensure that navigational aids remain operational in all circumstances, and that seafarers are made aware of dangers such as wrecks. That role is often understated, but it is terribly important, as the right hon. Member for Orkney and Shetland (Mr Carmichael) might agree; I am sure it is important in his constituency. I will take the opportunity to thank everyone who works for Trinity House, the Northern Lighthouse Board, and Irish Lights, for their professionalism in extremely difficult times, and for keeping people safe. We are also commencing projects to build new vessels for Trinity House and the Northern Lighthouse Board. Both will go out to formal tender shortly.

A great deal of vessels, in terms of number and breadth, are available in the Government’s pipeline, and there is no reason for that not to include fishing, as my hon. Friend the Member for Waveney rightly pointed out.

I will say a word or two about skills. Skills are clearly part of the Government’s levelling-up agenda and a massive part of the industry. Today, as we also heard from my hon. Friend, the Maritime UK coastal powerhouse event takes place. Coastal communities are very much part of levelling up and of the industry we are discussing today. We need to ensure, as my hon. Friend the Member for Totnes rightly pointed out, that we have the skills we need not just to recover from covid-19, but to look to the future and to ensure we have the skills we need for the industry. That is a key part of the Maritime 2050 strategy, which the Department produced about two years ago. It brings together, in conjunction and consultation with industry, the plan for the future.

A key part of that plan is the Maritime Skills Commission. Professor Graham Baldwin was appointed as chair, alongside 18 commissioners, and it has £300,000 in funding. One of its recent focuses has been green skills, to which my hon. Friend also drew attention. The Seafarer Cadet Review was also published in June.

I am grateful that hon. Members mentioned East Coast College and South Devon College, which are looking at STEM—science, technology, engineering and maths—skills in their own ways in their parts of the world. That is critically important work, close to all our hearts.

My comments must be slightly constrained by the fact that a spending review has been announced recently. The Government will announce how we will continue to invest in public services, and the Department for Business, Energy and Industrial Strategy is working up a business case for a home shipbuilding credit guarantee, which is part of the spending review considerations. We continue to look at what other financial support might be available to work jointly with industry.

The hon. Member for Glasgow South West asked me about public procurement. There was a Green Paper, and those responses are being considered by the Cabinet Office. The DFT will continue to review the tonnage tax regime.

I am conscious that my speaking time is running out, although there are a great many other things I would like to talk about. My hon. Friend the Member for Totnes rattled off a list of things, each of which could make for a great debate in its own right—flag, tax, supply chain. I would love to have debates on those subjects; maybe he will apply for some. I do not suppose it is my job to encourage the holding of debates, but I just have.

I should also give a plug to the debate on the cruise industry scheduled for next week, which I am sure my hon. Friend the Member for Thurrock will attend if she possibly can. I appreciate the support of and constructive criticism from all Members. We have had an interesting, helpful and constructive debate.

[Mr Kevan Jones]

I thank the Minister, who has a real passion for the sector and for aviation. We have had a good, well-informed debate. The main point is clear: this is about people and the skills we need for those people. We cannot take those for granted and we must invest in them. As was pointed out by the right hon. Member for Orkney and Shetland (Mr Carmichael), we must ensure that people are not only well trained, but properly remunerated.

The other side of the issue is procurement, where the default position in the sector should be to procure and buy from UK yards—I make no bones about it. There is no excuse for not doing that; no other country in the world does not do it. The idea that we are considering buying ferries from Turkey is nonsensical.

That has to be the default position, and the Treasury should remember that the money comes back into the UK economy. We must ensure that the Treasury gets the fact that money spent in UK shipbuilding and in the UK maritime sector is money that will not only grow the sector, but procure jobs for the future.

I shall finish where I started, with a point on which I think we all agreed today: this is not an industry of yesterday; it is an industry of the future. We must make sure it is, and make sure it is attractive for young people to come in to, so that we not only get the well-paid jobs and skills, but benefit the broader UK economy.

Question put and agreed to.

Resolved,

That this House has considered the UK’s maritime sector.

International Travel

Lord Beamish Excerpts

Tuesday 29th June 2021 Commons Chamber

[Grant Shapps]

I am grateful for the direct message. Sadly, the pandemic and the virus do not give us much advance notice; we often find that a country is on the green list and we need to move it, as we saw with Portugal and Spain with the travel corridors last year. One thing that we have done to provide a little more forward guidance is use the green watch list, the purpose of which is to help my hon. Friend’s constituents to see when a country may be a bit closer to the amber border and when they would therefore want to be more aware. I hope that that provides a bit of additional guidance, but I will return to the House next month with more details of what double vaccination can mean for people and for the travel industry.

[Mr Kevan Jones (North Durham) (Lab)]

The Prime Minister has acknowledged that this summer will not be typical with regard to international travel. Regional airports such as Newcastle International rely on the summer season to generate the bulk of their revenue and tide them over during the quiet periods in the winter. Will the Secretary of State look particularly at regional airports this winter? What support can they be given to ensure that not generating revenue over the summer does not lead them into difficulty later in the year, once international travel has opened up?

National Bus Strategy: England

Lord Beamish Excerpts

Monday 15th March 2021 Commons Chamber

[Grant Shapps]

First of all, I agree, and I just said, that London has been getting a very nice bite of the cherry with its buses, and we want the rest of the country to get the same. That is the point of launching this strategy. I am afraid that I do not recognise the second point that the hon. Member made. She may be getting confused by the fact that hard-working great MPs who lobby for their local areas may just end up being successful in bringing services to their area. I have no doubt that she will join her area to that list as well.

[Mr Kevan Jones (North Durham) (Lab)]

Many rural communities rely on bus services provided by small, often family-run businesses such as Stanley Travel in my constituency, who have found it hard during covid because they do not have the resource to capital that some larger companies have. What specific help will be available to such companies to ensure that they not only survive but that those important local bus services continue?

[Grant Shapps]

The right hon. Gentleman is absolutely right. As ever with the coronavirus, those small companies have had a tough time. It is worth mentioning that we put £240 million, and then £27 million a week, into supporting buses, so we have been pumping in a lot of money without which those services would not have been able to survive at all. Of course, individual smaller companies will have had access to things like furlough. The strategy overall is the sunlight at the end of this, because for the first time there will be a proper strategy that he and his local authority will be able to oversee. I am sure that there will be great opportunities for some of the smaller bus companies as well.

Airport Expansion

Lord Beamish Excerpts

Monday 2nd March 2020 Commons Chamber

[Kelly Tolhurst]

I thank my hon. Friend and constituency neighbour for raising this matter. She knows very well my position on the Thames estuary airport proposal—prior to being appointed Minister for aviation.

[Mr Kevan Jones (North Durham) (Lab)]

I am disappointed at the new hands-off approach to Heathrow expansion that the Minister has outlined today. It is vital for regional connectivity from airports such as Newcastle. As the right hon. Member for Scarborough and Whitby (Mr Goodwill) said , stopping the expansion of Heathrow will not stop the expansion of Düsseldorf, Brussels or Amsterdam—exporting jobs and prosperity abroad, rather than actually affecting our own economy. When will the Minister publish the new airport strategy because, without Heathrow, the Government will be driving a cart and horses through the present strategy?

[Kelly Tolhurst]

The right hon. Gentleman knows that the decision was taken by the courts last week. We are analysing the complex judgment and will bring forward the next steps. I have been quite clear that airport expansion is a key part of levelling up and increasing the national economy. We are determined to deliver on investing in our infrastructure and aviation, and airport expansion is a part of that.

Rail Services: North-East England

Lord Beamish Excerpts

Tuesday 4th February 2020 Commons Chamber

[Mr Kevan Jones (North Durham) (Lab)]

I am very pleased to have secured the debate, but it is sad that it also gives me another opportunity to raise the poor service that constituents of mine who travel from Chester-le-Street railway station are still receiving. I initiated a similar debate on 15 January 2019, highlighting the poor service that was being generated from the change in the timetables in May 2018. The Minister who replied was the then Parliamentary Under-Secretary of State for Transport, the hon. Member for Harrogate and Knaresborough (Andrew Jones), and I think it is worth reiterating what he said. He said:

“There will be no repeat of the processes that led to the failure of May 2018 and that timetable change.”—[Official Report, 15 January 2019; Vol. 652, c. 1139.]

He also said that he entirely agreed with me that services offered to several parts of the country, including the north-east, had been “unacceptable”. Then, trying to strike a bright note and thinking that it was a positive gesture, he said that new rolling stock which would be brought into service in the coming months should make life easier for passengers using Chester-le-Street railway station.

All I can say is that nothing could be further from the truth. We have now experienced the impact of the new timetable that was introduced in December 2019. Given the combination of shocking incompetence on the part of those responsible for the timetable and the blatant disregard of operators—mainly TransPennine Express—for the wishes of the travelling public, the situation is just as bad, and not just in my constituency: I know that it has been affecting others across the north-east.

[Mike Hill (Hartlepool) (Lab)]

Hartlepool is the third busiest train station in the north-east, which shows that there is great demand for rail travel, yet the trains to Newcastle run only once an hour, and even then they have only two carriages. Does my hon. Friend agree that that is completely unacceptable and that more resources should be put into stations that are well used, such as Hartlepool?

[Mr Jones]

I totally agree; it is the same story that we get all the time. If Hartlepool, a town adjacent to the two major conurbations of Teesside and Tyneside, were in the south-east of England, it would have a service every half hour, rather than the one my hon. Friend has just outlined.

That brings me to the changes that were brought in in 2019. The timetable for my constituents got off to a flying start, because the two peak-time commuter trains, at 7.10 and 8.03 in the morning, were both cancelled on the first day. A further 11 daily TransPennine services to the north-east were withdrawn by the end of January, which left only 50% of TransPennine’s timetable for the north-east operational. TransPennine had given clear commitments to Transport for the North that there would be a seamless integration of the new timetable.

[Jim Shannon (Strangford) (DUP)]

The hon. Member is right to bring this issue forward, and he is always very assiduous for his constituency. Does he not agree that in order to have a thriving industry and business district, there must be a reliable, dedicated public transport service? Does he also agree that that takes funding and a forward-thinking strategy, and that more of both must go into the rail network in his area and into public transport in general throughout the United Kingdom?

[Mr Jones]

I agree with the hon. Member. Chester-le-Street in my constituency is a commuter town for Teesside and Tyneside, and it relies on good public transport.

The timetable got worse, and by January it had still not been fixed. Between 1 January 2020 and 24 January 2020, 17 TransPennine services were out of action. The managing director of TransPennine said that performance was “not up to scratch”, but I think some of my constituents would use more forceful language to describe it. The Department for Transport said that it was “completely unacceptable”, which again is a bit of an understatement.

[Grahame Morris (Easington) (Lab)]

I congratulate my hon. Friend on securing this important debate. He is absolutely correct. It is not just in North Durham but in my constituency that the services are a disgrace. The trains are often filthy and they often have only two carriages so people cannot get on to them. We were promised that the ancient Pacer trains would be replaced by Sprinter trains, but they are actually trains of the same age. How can we address the problem of the regional disparities and level up on transport infrastructure investment in rail services, given the terrible state of the services and the terrible record that we have to cope with at the moment?

[Mr Jones]

My hon. Friend makes a good point. We have seen a lot of promises recently about investment in transport infrastructure in the north, but there is a combination of two things here. It is about cash, but it is also about competence in running the network. Before we start opening up new lines, we need to ensure that the existing ones work properly. The franchising system in this country has clearly failed. His constituency, like mine, is next to two large conurbations, Tyneside and Teesside, and his constituents should be able to travel there easily. Again, if it was in the south-east of England, they would be able to do so.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

I thank the hon. Member for securing this important debate. I agree that the TransPennine service has been dire. It was already the second-worst performing franchise in the country, but in December it got much worse. Only half the trains were on time, and 33% were either significantly late or cancelled. Does he agree that there should be a more punitive system of fines to focus the attention of the management and to ensure that these services run on time?

[Mr Jones]

I will come on to my response to TransPennine, but the underlying problem is how the timetable was drawn up. Durham County Council clearly indicated what it wanted to see at Chester-le-Street, a growing commuter town, only to find that services were taken away. When I wrote to the Transport Minister, I received a letter saying, “Well, you’ve got more stopping services.” We have, but not at the times when people actually want to travel. For example, the popular 7.17 am train was taken off the timetable and the equally popular 5.15 pm train southbound from Newcastle was moved over half an hour later. It is no good arguing that more trains will be stopping if they stop at times when people do not want to travel. It is a fundamental flaw. Frankly, Transport for the North should be renamed “Transport for Leeds, Sheffield, Manchester and Liverpool” because it clearly does not seriously consider representations from anywhere north of York.

The ongoing effects have had an economic impact, as the hon. Member for Strangford (Jim Shannon) mentioned. This is not just about the frustration of individuals who find that trains have been cancelled, because there is an equal economic impact. As I said in my previous debate, people have had to give up jobs or not accept promotions because they cannot get into work, and families who want to come back to look after their children find it difficult to do so. That is just not acceptable.

I would like Transport for the North to tell me about another town like Chester-le-Street, where 30,000 people live, that has such a poor service and is totally disregarded. The facts speak for themselves, because train usage at Chester-le-Street is actually declining—it dropped by more than 9% between 2017 and 2019—and my hon. Friend the Member for Easington (Grahame Morris) saw usage at Seaham drop by 2.5%. There is this great mantra that we should be getting people out of cars and on to public transport, but the mess with the operation of the timetable is driving people off the railways, and that cannot be good for congestion in Tyneside and Teesside.

Turning to the point raised by the hon. Member for Thirsk and Malton (Kevin Hollinrake), I have to say that TransPennine is appalling. I hate using the term, but it is not fit for purpose. It could not run the proverbial in a brewery if it was given the instructions. It does not care about passengers. There is no information when services are cancelled. People turn up and they are told the train is late, and then it is just cancelled, leaving people to their own devices. No information or alternative buses are provided. The situation is not down to any lack of trying, because I have raised the matter directly with TransPennine officials, including at a public meeting I held with them two years ago where they said they would provide information, but they just do not care. Their attitude stinks.

I thought April fools’ day had come early last week when TransPennine put out its stakeholder newsletter. I do not know whether any other colleagues received it, but it included a big photograph showing how proud it was to win rail operator of the year at the business travel awards. All I can say is that I would hate to see what the competition was if TransPennine won, and it is quite clear that the judges did not speak to many of my constituents or those of many colleagues. It was a further insult when TransPennine announced on social media that from this week, it is going to stop people buying tickets on its trains, saying that if people get on without a ticket, they will be fined.

Since the ticket office was closed, Chester-le-Street station only has ticket machines on the southbound platform, and they are often not working, but people getting on the train without a ticket will be fined.

In the last week, two constituents have complained to me that they have bought tickets on trains, but have been treated in a threatening manner and told that in future they will be fined. I am sorry, but if the company cannot maintain a network and provide the service, it is an insult to my constituents, and other travellers, to make such threats. My constituents do not want threats. They want trains to turn up on time and, in some cases, to turn up at all.

The hon. Member for Thirsk and Malton asked what the answer is. I have to say that TransPennine needs the franchise taken away. Northern has had its franchise taken away in the last few weeks, and we need to follow. Ironically, at Chester-le-Street, the trains that turn up on time have actually been Northern, which I know is not the experience of other colleagues. If Northern has had the franchise removed, so should TransPennine. What will happen to the investment that Norther earmarked for improvements at Chester-le-Street station, because there is clearly some doubt about what will happen now? TransPennine has been given enough chances. As I said earlier, its attitude stinks. It is not customer-focused and it is having a detrimental effect on many of my constituents.

Finally, I want to raise a broader issue. I know that in the near future—perhaps this week—the Government will make a decision on HS2. Personally, I have never been a great fan. I do not think it will affect many of my constituents, apart from swallowing large amounts of public investment over the next decades, but there is an issue that the Government could address now. We have had various promises thrown around about opening the Beeching closure lines and others in the past few weeks, but if HS2 is to benefit the north-east—look past York, because there is more to the north than York and Leeds—what is needed is the upgrade of the east coast main line. Without that, HS2, when it finally does arrive—if it ever does—will not be able to increase capacity from the north of York to further north.

[Mike Hill]

I thank my hon. Friend for giving way again. First, I wish to correct the record as I ambitiously stated that Hartlepool was the third busiest station in the north-east: I meant on Teesside. Important to that is the condition and state of that line. The Durham coast line has needed an upgrade for years and years. Does he agree that that investment is absolutely necessary?

[Mr Jones]

I do, and my fear about HS2 has always been that investment will be sucked out of the rest of the network. Although we have now got the magic money tree—if not an entire equatorial rain forest of money trees—from the Government for HS2, plus all the investment in lines such as my hon. Friend’s, we will have to wait and see what actually happens. It is important that if the north-east is to benefit from HS2, that investment is put into capacity in the east coast main line north of York. The Government could do that now, and it would have a beneficial effect for the travelling public by helping capacity, and that should be addressed if we do have the announcement on HS2.

My constituents are frankly fed up with the service that they have received from the rail services from Chester-le-Street. My broader concern is the one raised earlier about the economic impact on my constituents, because Chester-le-Street is a great place to live. People move there because it is a great place to bring up families, with good schools, but people need to be able to travel to jobs in the south of the region and in the north of the region. Without a good rail service they cannot do that. What they want is not warm words or political promises of funding tomorrow: they want action now.

[The Minister of State, Department for Transport (Chris Heaton-Harris)]

I thank the right hon. Member for North Durham (Mr Jones) for securing this debate on rail services in the north-east and I thank all Members who have contributed to what has been quite an informative debate.

I bumped into the right hon. Gentleman earlier today, and I looked up the report of his previous speech on this matter, on 15 January. I note that he has not really had to do much work to improve his words, because it is very similar to the speech that he unfortunately had to make a year ago.

A number of issues were raised, which I shall address. I would like to reassure the House that the Government’s priority is for the country’s trains to run on time, and to drive growth by giving local leaders a greater say in the running of their railway. As such, we are investing billions of pounds in the rail system, from which passengers can benefit. The right hon. Gentleman was slightly dismissive of that investment, but it is worthwhile investment in infrastructure and will level up the country.

I note that a number of other hon. Members intervened —the hon. Members for Hartlepool (Mike Hill), for Strangford (Jim Shannon), for Easington (Grahame Morris) and for Thirsk and Malton (Kevin Hollinrake). A couple of right hon. Gentlemen would have loved to intervene in the debate but could not—my right hon. Friend the Member for Scarborough and Whitby (Mr Goodwill) because he could not be here, and the right hon. Member for Newcastle upon Tyne East (Mr Brown) because he is the Opposition Chief Whip. I take the opportunity to record their concern about what has been going on with TransPennine Express services.

As the right hon. Member for North Durham said, my Department said recently that those services had been unacceptable, and we believe that is the case. In the December 2019 timetable change, TPE planned to increase the number of calls that it made at Chester-le-Street from 21 to 23 per day. That included a new southbound 7.52 am service to help passengers travelling at peak times to Durham, Darlington, York, Leeds, Manchester and Manchester Airport from his constituency. Unfortunately, following delays to the introduction of new rolling stock, a temporary timetable was put in place, which impacted TPE trains scheduled to call at Chester-le-Street. I have been advised that the full December timetable will be reinstated in the next few weeks.

Chester-le-Street is a station served by TransPennine Express services on the Manchester Airport-Newcastle route, and since 20 December 2019 TPE has extended the Liverpool-Newcastle service to and from Edinburgh. That service, when it functions properly, will provide Morpeth with an hourly service for much of the day to and from Edinburgh for the first time in years—something that has been welcomed, if it were only to be delivered on a regular basis.

TPE also provides a through morning service from Chester-le-Street to Edinburgh. During this month, TPE will have 13 of its Nova 1 trains in service to and from Newcastle, providing an inter-city level of comfort and additional seating per train. Those trains will call at Chester-le-Street. As the right hon. Gentleman is aware, Chester-le-Street is on the east coast main line, which is a very busy line, thus limiting any extra services that TPE could possibly provide.

However, we all know of the issues that the service has had in the past couple of months. Issues with training drivers and getting the rolling stock in on time have led to all sorts of different issues—for example, with signalling.

[Mr Kevan Jones]

I accept that there have been issues with it being a busy line, but the new timetable took out, for example, the 8.17 am northbound to Newcastle and the 5.20 pm southbound, both of which were very busy with commuters; the two most popular trains were taken out of the timetable. For what reason?

[Chris Heaton-Harris]

I guess that is a question for the franchise to answer for itself, but I completely understand the right hon. Gentleman’s frustration, and that of his constituents who would like to use a service to go to and from work at times when ordinary people would be commuting.

[Chris Heaton-Harris]

“Things can only get better” is the most new Labour thing the hon. Gentleman has ever said, but I completely understand the point he is making. In fact, it is very Kevin Costner: if you build it, they will come. That is the case with the railways nowadays.

I was trying to talk about the problems that there have been with services. As right hon. and hon. Members in the Chamber well know, to try to correct problems with the service within timetable, TPE has been stopping services at York, meaning that lines further north to places such as Scarborough and Whitby, Thirsk and Malton and others have not been provided with the timetabled service that people would expect.

TPE is investing heavily in its rolling stock. As part of its £500 million investment in trains, it is currently introducing three new fleets into passenger service. Trains in all three fleets will be operating across the north and into Scotland by the end of this year, providing 13 million extra seats a year. We hope to be able to address some of the capacity problems that hon. Members have outlined, and TPE will have 44 brand new, state-of-the-art trains, with five carriages each, which will provide an opportunity for new routes and services, and increase capacity by more than 80% on a seven-day-a-week timetable.

TPE is gradually re-introducing some pre-cancelled services. On 3 February, yesterday, 22 of the 32 Liverpool to Edinburgh/Edinburgh to Liverpool journeys were reintroduced, and on 17 February the remaining 10 journeys will be reintroduced. On 30 March, the Northallerton and Darlington skip stops will also be reintroduced. However, because of the late delivery of and technical issues experienced by some of its new trains, and the unavailability of train crews as a result of shortened timescales for training, TPE customers are experiencing an unacceptable level of service cancellations and disruption. TPE is, therefore, compensating some customers for the disruption. Passengers who held a season ticket between 1 October and 31 December in 2019 will be eligible for a 3% rebate, which will more than cover the 2.8% average increase on regulated fares. In the short term, from yesterday TPE has improved its compensation arrangements so that passengers will get money back from the price of their ticket if trains are delayed by 15 minutes or more.

[Mr Jones]

Will the Minister have a look at the way in which TPE pays its compensation, as this is complicated and people just give up when they do it. TPE might make those claims about compensation, but it is not actually doing it in practice.

[Chris Heaton-Harris]

I will happily look into how compensation is paid to TPE customers. I understand completely the right hon. Gentleman’s point about how poor the information to TPE customers has been. Something that we would think would be quite easy to get right, and that rail passengers across the piece appreciate, is honest information on why services cannot run. A bit more transparency could help to lessen some of the anger that is quite rightly felt by passengers when they are literally left in the dark.

Let me turn to the franchise itself. We have been clear with the operator that it must take urgent steps to address the poor performance. If necessary, my Department will take action under the terms set out in the franchise agreement. As I mentioned earlier, over the next two months TPE will reinstate the services that it took out as part of the temporary timetable that followed the issues with the delayed introduction of rolling stock in December. The Secretary of State and I recently met the managing director of the franchise, Network Rail and the manufacturers of the new trains, CAF and Hitachi. We did not use Anglo-Saxon language, as many customers might have been using recently, but we made it perfectly clear that they must take urgent steps to improve their services.

I did not know about the issues with ticket machines at the right hon. Gentleman’s local station. I will take that away, find out a bit more and come back to him, if that is okay. If a ticket machine is broken, we would always expect the train operating company to use the discretion available to it. We would not expect people to be charged penalty fares in such circumstances, so I will happily take that issue away.

I will check and come back to the right hon. Gentleman, but I would expect the improvements to the station by Northern to continue to go ahead as normal. I know that he is fairly sceptical about the opening of new lines, but I have been contacted by a local activist near to the right hon. Gentleman called Christopher Howarth who is keen to see the railway between Sunderland and Durham reopened. As a viaduct fan, I can say that there is one of the most beautiful viaducts I have ever seen along that route, so I very much hope that those plans will come to fruition.

I thank the right hon. Gentleman for the way he has gone about this debate. He has been as positive as he can be and quite rightly demanding for his constituents. I hope and expect that in a year’s time he will not have to come back and go through all this again because we will have sorted this: the new rolling stock will be working properly, the timetables will work properly and, indeed, all the drivers will be trained appropriately.

Question put and agreed to.

Thomas Cook

Lord Beamish Excerpts

Wednesday 25th September 2019 Commons Chamber

[Grant Shapps]

It is not quite the case that we cannot distinguish, although I take my hon. Friend’s point. We can distinguish between the two, but there is a strong argument for making sure that, when someone books a flight one way or the other, it is insured and that the cost does not ultimately fall on the taxpayer.

[Mr Kevan Jones (North Durham) (Lab)]

The directors have walked away with millions while hard-working employees of Thomas Cook, such as Jemma Lynch in my constituency, who contacted me at the weekend, have lost their jobs. Will the Secretary of State outline how she and others can contact the Department for Work and Pensions for the help that has been outlined? Secondly, will he comment on the pensioners in receipt of pensions and on the future pension arrangements for those who have already paid into the pension schemes?

[Grant Shapps]

On the pensions front, I think there are four different Thomas Cook pensions, the largest of which is a £1 billion fund. That will now be handled through the usual insolvency pension fund process. It is, of course, a worrying time for everyone involved. With regard to the constituent the hon. Gentleman mentioned, the DWP is ready for her to make contact through the rapid response unit. If there are any difficulties, will the hon. Gentleman please alert me? I will make sure that the Business Secretary and the taskforce are immediately switched on to any problem that occurs. We are very keen to get realtime feedback on this.