North of England: Transport

Lord Ahmad of Wimbledon Excerpts

Wednesday 17th June 2015 Lords Chamber

Moved by

[Lord Ahmad of Wimbledon]

To move that this House takes note of transport connectivity and infrastructure in the north of England.

[The Parliamentary Under-Secretary of State, Department for Transport and Home Office (Lord Ahmad of Wimbledon) (Con)]

My Lords, I am delighted to lead this debate—the first substantive Lords debate on transport in this Parliament—for it concerns a matter of great importance to our country: the regeneration of the north, the rebalancing of our economic geography and the role of transport in stimulating growth. I look forward to hearing contributions from noble Lords on this, which I know will be, as ever, informed and insightful. I am very grateful to all noble Lords who are participating in the debate.

Britain is flourishing once again. Today we have more people in employment than at any time in our history. The deficit has been halved and we are on track to be the fastest-growing major economy in the world in 2015, just as we were last year. Any Government would be proud of these achievements, but we also recognise that our job is far from over. As our manifesto explained, the Government’s ambitions go much further than simply turning recession into recovery. The headline GDP figures are hugely encouraging, but the challenge now is how we grow and how we sustain and balance growth so that everyone can share in the benefits. The fact is that for generations Britain has been a two-speed economy, with a distinct prosperity divide between the north and the south. Yet we have it in our power to close that gap and to do something that no post-war Government has done—to build a new northern powerhouse and to bring our country closer together, with transport playing a pivotal role in the process.

It is two centuries since the north helped pioneer new manufacturing processes, which triggered the Industrial Revolution. But that did not just change the way we made goods: it changed the way we transported them, too. Canals and railways gave the north a competitive advantage. Within a week of the first canal opening, the price of coal in Manchester had fallen by half. Transport opened up new labour markets and gave companies access to new customers, just as it does today. Roads and railways are the arteries through which the life-blood of our economy flows. Yet for decades, transport investment in the north has lagged behind London and the south-east. Successive Governments have failed to provide the vision—or, indeed, the funding—needed to bring the north’s infrastructure up to standard.

I recognise that many in this House who will take part in the debate have made great contributions to tackling this very challenge. I acknowledge the efforts made by the noble Lord, Lord Prescott, who initiated the Northern Way in 2004, and the strong case that he has made for transport connectivity across the north. I also acknowledge my noble friend Lord Heseltine, who has been a passionate advocate for devolution and direct action to regenerate the north—and there are many others.

The northern powerhouse, which has been made a priority for this Government, recognises that the north remains poorly served by transport. As a result, lack of capacity and poor connectivity across the north act as a drag on growth. That is something that we have to change and are changing. Just as transport created the first northern powerhouse, so it will create the second one, too. We are already committed to £13 billion of transport investment across the north in this Parliament alone. That will include improving roads, rail and local transport.

Most importantly, it will also link the cities of the north. As my right honourable friend the Chancellor of the Exchequer pointed out, if you look at all the great cities and towns within a 40-mile radius of Manchester, you have a region with incredible potential and a huge pool of talent. United as a single unit, this region can be a much more powerful economic force—one that, in turn, will benefit not just that region but the whole country. A network of cities connected by a modern transport system, which acts as a catalyst for growth, aspiration and opportunity, making the whole greater than the sum of its parts: that is what the northern powerhouse is all about.

I will very briefly explain the progress that has been made on northern transport over the past year. Last summer, the Chancellor set out his vision for the northern powerhouse. In response, Manchester, Leeds, Liverpool, Newcastle and Sheffield came together to produce the One North report in August: a single transport plan for an interconnected north.

In October, HS2 chairman Sir David Higgins published his report Rebalancing Britain, and in the same month we created and established Transport for the North, a new alliance of northern authorities and city regions speaking as a single voice and working with government and national transport agencies such as Network Rail, Highways England and HS2. Transport for the North is proof that we are serious about devolution and investing in our transport infrastructure. This is a transport programme for the north, delivered by the north.

In March this year, TfN and the Department for Transport jointly published the first Northern Transport Strategy report covering roads, rail, freight, airports and smart ticketing. A second report will be published next year. By the autumn, an independent chairman will have been appointed, based on a mechanism agreed with all TfN partners. So transport will be at the heart of the new northern powerhouse.

Rail is a particular priority. As I am sure we all recognise, rail is the most efficient and effective way to move large numbers of people quickly and reliably between cities, and is absolutely key to the future of the north. However, the network has been neglected for decades and overcrowding is a daily reality for commuters on routes into major cities such as Manchester, Leeds and Liverpool. Some trains are operating at more than 50% overcapacity, so the improvements we are making as part of the largest and most ambitious rail investment programme since the Victorian era are long overdue. For example, we are delivering the northern hub, a major electrification programme and new rolling stock on TransPennine routes and the east coast main line. Our plans will add capacity for another 44 million passengers a year on the existing northern railway, with an extra 700 trains running each day. TfN will work to maximise the benefits of these investments.

In just two years, we will start building HS2. HS2 will change the transport architecture of the north—but, most importantly, it will also change the economic architecture. Seven out of 10 jobs created will be outside London, with the north and Midlands gaining at least double the benefits of the south. We are looking at the case for faster construction of the northern sections to deliver those benefits as soon as possible, including a dedicated Bill for the line to Crewe, subject to further analysis and final decisions on the preferred route. Sir David Higgins has suggested that such a link might be brought forward by six years. We are also looking at the potential for speeding up the line between Leeds and Sheffield. We will make an announcement about phase 2 in the autumn. As the first new north-south railway for more than a century, HS2 will dramatically improve connections across the north and, importantly, will slash journey times. For example, the trip from Leeds to Birmingham will be cut from one hour and 58 minutes to just 57 minutes.

However, our plans for northern rail do not stop there. To transform services right across the region we also need to build a new east-west line. Currently, journeys on these routes are too slow, too infrequent and too overcrowded. This simply puts people off travelling and puts businesses off investing in the north, so our strategy includes a new high-speed rail link linking Liverpool, Manchester, Leeds, Sheffield and Hull. This line will reduce journey times, increase capacity, have more frequent services and improve connectivity. Together, these plans represent a massive step forward for transport in the north—and, of course, they will free up substantial capacity on the existing rail and road network.

Improvements to the road infrastructure are crucial for the north. That is why the Government have already committed £3 billion for northern road improvements in our Road Investment Strategy. As with rail, east-west road connections are increasingly congested, making journeys unreliable, particularly in bad weather. The work of Transport for the North and Highways England will focus on how best to address this problem, with targeted investment to relieve pinch points and to get the network moving freely. We are already upgrading sections of the motorway network, including the M62 between Manchester and Leeds, to four-lane “smart motorways” to make best use of their capacity. We are also improving the A1, the M1 and the A64 and delivering a large number of local schemes.

This is a start, but it is not enough, so next we will look at the potential for a new road tunnel under the Pennines between Sheffield and Manchester, possibly linked with a new rail tunnel. We are also looking at the problems on the M60 and whether an alternative to the M62 lies further north, in dualling the A66 or A69. Our fundamental objective is to fix problem roads and to get traffic moving once again so that motorists are able to drive at a minimum speed of a mile a minute on the core network.

I turn briefly to aviation and freight. The strategy also includes developing northern airports such as Manchester, Newcastle, Leeds-Bradford and Liverpool. Manchester, as I am sure many noble Lords know, will benefit from a £1 billion investment plan over the next 10 years. It is vital that we link the region to fast-growing markets around the world such as China, India and Brazil, because these links will attract investors to the north. Road and rail connectivity to airports and ports is of particular importance, so we are working with TfN to boost the links to these international gateways. HS2 and the new east-west line will provide significantly improved access. Individual city regions are working with local airports to improve connectivity right across the north.

We also have a shared vision with TfN for freight to support the northern powerhouse. It is a single plan for the future of logistics across the north—and this is the first time that any Government have produced such a plan. The objective is to build a single distribution network that operates efficiently and sustainably across modal boundaries and that exploits the full potential of private investment around ports in the north such as Liverpool, Humber and Tyne.

Today is—and the next few years will be—a tremendously exciting time for transport in the north: we are rolling out the road investment strategy; the HS2 Bill is making progress through Parliament and we are continuing development work on phase 2; we are pressing ahead with plans for the new high-speed, east-west railway; and TfN is uniting different authorities, city regions and the transport industry to deliver a single vision for transport in the north. Some may say that it is an ambitious plan that will take time to implement—but, as I am sure all noble Lords recognise, the prize at the end will be worth it. We look to establish and sustain a modern, reliable transport system to support and provide a boost for the region in terms of employment and related growth for generations to come, and to truly establish the north as an economic powerhouse that will not just be for the region alone but will have global reach.

--- Later in debate ---

[The Parliamentary Under-Secretary of State, Department for Transport and Home Office (Lord Ahmad of Wimbledon) (Con)]

My Lords, I thank all noble Lords who have taken part in this very extensive debate. We are three hours in since the debate commenced, which reflects the depth of knowledge, expertise and wisdom expressed during the debate on a very important issue. We have been talking today about transport for the north, and it was the right reverend Prelate the Bishop of Derby who said that he felt like an interloper. Imagine how I, someone from Wimbledon, feel talking about transport for the north. Nevertheless, we always seek to establish our true credentials. On transport, I am the son of a gentlemen, who when he arrived in the 1950s, was very much up in the north, in Glasgow, and was a railwayman. He went on to complete his career in the aviation industry, so perhaps something has been passed on from my dear father in terms of my standing here in front of noble Lords as a Minister for Transport.

We have discussed something very important. The noble Lord, Lord Rosser, talked about some of the challenges. He feels that the report does not outline the plans in detail. However, before you bring any strategy together, you need to have the vision, so let us not knock vision. He said that buses are mentioned only three times. Perhaps that is his experience of waiting for a bus because they say three come together—not that I am saying that that was the basis of the report. The report outlines connectivity not just in our transport system. Several noble Lords, including the noble Lord, Lord Smith of Leigh, spoke very eloquently about the importance of partnership in terms of local councils, the private sector, the Government, Transport for the North and all interested parties coming together to ensure connectivity in partnership to deliver connectivity in transport. Therefore, I think we need to be encouraged. I appreciate the fact that many noble Lords alluded to the positive nature of the Government’s strategy and its statement of intent.

Various noble Lords mentioned my predecessors. I pay tribute to those who have laid the basis for transport in the United Kingdom. In my opening speech, I alluded to the noble Lord, Lord Prescott. I see the noble Lord, Lord Adonis, in his place. I believe my private office will be in touch with the noble Lord about discussing issues of mutual interest. I hope noble Lords will appreciate that when I took on this responsibility, one of the first things I did was to meet the noble Baroness, Lady Kramer, to ensure consistency in the handover in the approach to important strategic issues and decisions that we need to make. I am not daunted, but I respect the fact that many noble Lords sitting in this Chamber have fulfilled the Transport Minister’s role in various capacities with great aplomb. If I achieve half of what they achieved, I will be a happy man.

The issue we have discussed today is important. The right reverend Prelate the Bishop of Derby talked about connectivity in the north not being exclusive. I share that. He talked about how industry in the Midlands has been a big success story. It is important that in anything we do there is connectivity across the country. Certainly that is what we are seeking to achieve with our strategy. I assure my noble friend Lord Inglewood that we recognise that there has to be linkage across the board in transport connectivity and that for the northern franchise we have specified better services, extra trains, retimed trains to serve shift patterns at Sellafield and train services that operate the full length of the Cumbrian coast on Sundays by December 2017.

The noble Lord, Lord Rosser, talked of the report. I note his genuine concerns about the facility at Hillingdon. I assure him that we are looking very closely at that challenge and the land that is being acquired. The March 2015 report set out the Government’s aspiration in terms of working with our partners and connectivity in the north. The appointment of a chairman and its governance will bring the whole issue together in a more effective way. Subsequent reports will set out further proposals across the various modes of transport, and I ask noble Lords to bear in mind that this is the first step in ensuring that we deliver effective connectivity across the country.

We all recognise that transport is one of the most powerful tools. Decent transport does not just get people around but helps them get on and opens up opportunity for business and people. It provides access to education and jobs and connects businesses with customers whether the markets are in Bradford, Birmingham or Brazil. Therefore we will use transport to make transformation in the north a reality, with unprecedented investment in roads and rail, and with a clear strategy for aviation, ports and freight. The noble Lord, Lord Prescott, asked about the report on freight. I can tell him that, working with TfN, we intend to deliver that report in March 2016.

Moving forward, various issues, understandably, were raised about rail. In the time I have I will seek to answer some if not all of the questions. If I have not covered something in my responses today, I will write to noble Lords and copy in those who have participated in this debate, and will of course place a copy of my response in the Library. Nevertheless, I will seek to address some of the issues.

Several noble Lords—the noble Lords, Lord Woolmer, Lord Shutt, Lord Faulkner, Lord Snape and Lord Berkeley—all talked about the east-west rail integration and the delay to electrification. I assure noble Lords that we are committed to transforming the north through £1 billion of investment in electrification and the Northern Hub. I have of course noted all noble Lords’ concerns about the possible delays that have been alluded to, and if I can provide any further information in that respect I will do so in writing to all noble Lords. I assure noble Lords that we do not take this lightly; it has been made quite clear that the electrification issue is a priority, and we will seek to move forward on that at the earliest opportunity. I also pay tribute to my ministerial colleague in another place, who has been mentioned: the Parliamentary Under-Secretary of State for Transport, Andrew Jones, for his work as chairman of the Northern Electrification Task Force. I am sure that as someone who has worked on the issue, he will be very much at the forefront of ensuring that the issues he raised in his report are brought to the attention of all concerned.

On train capacity, the noble Lord, Lord Smith, asked a specific question about legal limits on the number of passengers who can travel on a train. I am advised that trains are designed to operate safely and effectively to their own capacity, and that there is no such legal limit on the number of passengers. We understand that passenger overcrowding is an issue, which is why we are investing in increasing capacity in that important area, to which several noble Lords alluded.

The noble Lord, Lord Smith, asked about building HS2 faster. In a debate on connectivity, it is quite interesting that we are all talking about transport and improving its speed. One thing I can certainly take away from this debate is that it is not just about the delivery of speed with regard to ensuring that we have faster trains and connectivity, but about the speed of decisions. That point was well made by several noble Lords. We are of course committed to getting to the north sooner with regard to the HS2 development, and we are still working towards the opening of phase 1 in 2026.

The noble Lord, Lord Kerslake, raised the issue of Sheffield city centre. He is quite right to say that no decision has been taken yet, and the Secretary of State will announce the way forward on HS2 phase 2 later this year. Again, I noted some of his comments and concerns. He asked specifically about a meeting, and I will certainly bring that to the attention of Robert Goodwill, who is the Minister for HS2, to see if that can be arranged at the earliest opportunity.

The noble Lord, Lord Snape, raised the issue of manned stations and driver-controlled doors on new franchises, and also mentioned sending certain types of trains to Wimbledon. I must admit that if that was to happen, I am sure it would raise an eyebrow or two among the good people of the south-east and indeed Wimbledon. However, I am always inclined to think, when we look at replacing certain types of trains, that history is terribly kind, and that 10 years on they will probably become iconic pieces people will want to own, which will no doubt appear somewhere around the world on auction sites. We shall wait and see. On the specific issues he raised with regard to manned stations, it is important to note that staffing is a matter for the train operator. However, we are not specifying any staff cuts in the franchise, and we have emphasised the value of customer-facing staff on the railways. We are also giving drivers control of doors. Such control has been safely in operation on parts of the network for nearly 30 years, as I am sure the noble Lord knows. It also frees up on-board staff to provide the high levels of customer service which passengers expect.

The noble Lord, Lord Shutt, asked who is writing the northern transport strategy. As I said earlier, it is very much a question of partnership and of people coming together. As the noble Lord, Lord Smith, pointed out, everyone is aiming to ensure that the strategy, both in terms of writing it and in terms of Transport for the North, brings together all relevant partners. As I have already said, the Government will announce the way forward on phase 2 of HS2 later this year.

The noble Lord, Lord Beecham, was a bit concerned about whether certain transport deliveries would take place in his lifetime. I wish him well for a long and healthy life, and I pray for that too. He talked, in particular, about Highways England. He referred to it as the Highways Agency but I am sure he knows that the name has changed to Highways England. It is supported by the Government’s road investment strategy, and we have committed £2.9 billion to investment across the north by 2020-21. This is also reflected in our partnership with TfN.

My noble friend Lord Jopling mentioned the various experiences that he has had of different road networks. It was interesting that he referred to the M1. It reminded me that the Secretary of State himself spoke to me about travelling on the M1. Like all of us, he asked why there was a particular delay and why the speed limit had been reduced. It is important for Highways England to look at how it can inform the public more effectively.

I turn to specific questions about the M1. It will be upgraded to a smart motorway between junctions 32 and 35A and between junctions 39 to 42 to enable hard- shoulder running. The impact of current improvements on the M1 is also being assessed.

The noble Lord, Lord Shipley, talked about dualling on the A1 and I will come to the specific date for that in a moment. The noble Lord and my noble friend Lord Jopling also talked about the roadworks on the A1 around Gamston airfield being delayed. The noble Lord alluded to various factors which contributed to the delay. The contract is between Highways England and the contractor, and that means that the contractor will have to absorb a significant share of the cost increase.

My noble friend Lord Jopling and the noble Lords, Lord Clark and Lord Shipley, all raised the purpose of the northern trans-Pennine study. It is intended to look at upgrading either the A66 or the A69, or both, from the A1 to the M6, taking into account traffic demand, safety and resilience along these corridors. My noble friend talked about things being thrown into the long grass. It will not take that long—I am assured that the report will be ready by December 2016.

The noble Lord, Lord Prescott, raised an issue concerning the A63. My understanding is that Highways England’s delivery plan gives an anticipated start date for the work of 2016-17, with completion planned to take place by 2020-21.

The noble Lord, Lord Clark, asked about plans to improve the A595. This is an important route from west Cumbria and Sellafield, and it has been considered as part of the general upgrade. Highways England will consider the road as part of its next set of route strategies, which will inform the next road investment strategy.

I alluded earlier to a question asked by the noble Lord, Lord Shipley, concerning the A1. The upgrade of the A1 will be completed to provide a continuous motorway between London and Newcastle. North of Newcastle, investment will bring the A1 up to modern dual carriageway standard as far as Ellingham, creating 34 miles of continuous expressway. This will be done within the next five years.

I turn to comments about the Pacer. This was an education for me. I must admit that I have not been on a Pacer but I have seen a photograph of it. Someone described it as a bus on tracks. It could be iconic—you never know; I would put in the bids now. However, I can confirm that Pacers will be replaced by 2020 and that at least 120 new carriages will be introduced.

The noble Lord, Lord Bradshaw, raised the issue of skills, which is a specific area in my portfolio of responsibilities for transport. It is important that we look at skills. Transport infrastructure will be a key part of the overall infrastructure of delivery over the next 20 to 30 years and it is important that we invest now and look at our schools, colleges and universities to ensure that we have the skill sets to deliver the engineering requirements and in other areas as well. In this regard, the HS2 skills college has been created, with two colleges, in Birmingham and Doncaster. I am hosting an event next week celebrating women in engineering. That will, I hope, act as a catalyst to attract more women into the field of engineering.

The noble Lord, Lord Bradshaw, also raised issues specifically about investment in skills and asked for further details on that. I will write to him in that respect, if I may, in the interests of time.

Various noble Lords raised issues about connectivity and aviation. I have talked previously from this Dispatch Box about the importance of regional connectivity through our airports in the north of England. The investment recently announced for Manchester, of £1 billion over 10 years, is reflective of that. It is important to ensure that our transport networks, be they rail or road, support that element.

As ever, the noble Lord, Lord Berkeley, raised several issues on a wide range of concerns that he has, and quite rightly so. I welcome his general expression of support for the Government’s strategy. If I may, I seek his indulgence on the specific questions that he raised and, within a reasonable timescale as he stated, shall seek to write to him in that respect.

I trust that I have covered at least some of, if not all, the questions that have been raised today. As I said, I will seek to write to noble Lords in respect of those questions that have not been covered once we have reviewed Hansard.

Some people perhaps say that the country cannot afford to invest in large infrastructure projects. Let me assure noble Lords of the truth: we cannot afford not to. Yes, we need to be bold and ambitious; only then will we be able to put right the transport problems that we face and that have gone on for far too long in the north of the country. Ultimately, only then will we unlock the full economic potential of the region. If we want to build a new northern powerhouse, a north that can once again innovate, compete and outmatch the rest of the world, we need to invest in a modern, reliable, effective and efficient transport system. Roads, railways, ports or airports—they all provide excellent local, national and international links across the north. That is what we are committed to.

I will finish by quoting the noble Lord, Lord Prescott. He said that it is all right to talk but it is time to get on with it. We aim to do so. That is what we are committed to and that is what we will deliver. I thank noble Lords once again for their contributions.

Motion agreed.