Railways: Update

Lord Berkeley Excerpts

Wednesday 29th November 2017 Lords Chamber

[Lord Berkeley (Lab)]

I thank the Minister for repeating the Statement, and congratulate her on some of the things in it. Now is the time to see what can be and will be delivered. It sets out in a very positive way the contestability of some of Network Rail’s costs and how other contractors can do enhancements. I like the list of new openings and enhancements, some of which I have been involved in. I notice that something dear to my heart and that of my noble friend the Chief Whip is missing from the list—the reopening of the Lewes to Uckfield line. Perhaps the Minister can say why it is not included.

My biggest concern is the structural issue of the east coast main line, which is mentioned a lot in the report. It is easy to say that having the passenger and the Network Rail operators work together is a good thing, but there are open access operators and freight. I declare an interest as chairman of the Rail Freight Group on that line. The passenger figures for the open access operators on the east coast main line are very positive, so competition has brought benefits, not just to the traffic on the main line but to some of the other places served. Can the Minister explain how what the Government are trying to create as a big monopoly is going to protect the interests of the other open access operators and freight on a vital artery?

[Baroness Sugg]

As for the specific line the noble Lord referred to, the ones used in the strategy were just examples of lines that could be reopened; of course there are many others across the country. As I said, we will look into the economic case for all of them. On the east coast partnership, I acknowledge that the increased competition has led to increased numbers, but we believe that that suggested partnership between private and public ownership will be the best solution for the passengers. On freight, we think that joining up the track and train will benefit freight as well. We will ensure that those interests can contribute to the decision-making process on the franchising, and on the use of the rail lines.

Brexit: Border Crossings

Lord Berkeley Excerpts

Wednesday 22nd November 2017 Lords Chamber

Asked by

[Lord Berkeley]

To ask Her Majesty’s Government what detailed information they have provided to (1) HMRC, and (2) the transport and related industries, to enable planning and procurement for delay-free border crossings between the United Kingdom and European Union member states immediately following the United Kingdom’s withdrawal from the European Union.

[The Parliamentary Under-Secretary of State, Department for Transport (Baroness Sugg) (Con)]

My Lords, a number of government departments, including HMRC, are working together to ensure a co-ordinated approach to our exit preparations for the border. The Department for Exiting the European Union has established clear governance arrangements to scrutinise and assure policy development on exit across Whitehall. The Government continue to engage with a wide range of businesses on exit readiness and are developing border plans through discussion with industry bodies, including ports and airports.

[Lord Berkeley (Lab)]

I am grateful to the Minister for that Answer, which I might refer to as motherhood and apple pie—it is a nice piece of pie, though—but I wanted some detail. Perhaps I can offer her some detail; I have just received it from MDS Transmodal, which compiles statistics across the channel. Apparently, in 2014, just-in-time deliveries—the ones that could be held up most by customs—were valued at £282 billion. That includes £30 billion of fruit and veg and temperature-controlled goods, but also parts for aircraft, cars and other manufacture. If those do not operate, where will the businesses—Toyota, et cetera—go? Will the Minister congratulate the only person who has put his head above the parapet, someone called Jon Thompson, who runs HMRC? He was reported in the Sun on 30 October as saying that it might take five years to set up a post-Brexit customs system that worked. What are the Government going to do in the meantime?

Drones

Lord Berkeley Excerpts

Tuesday 21st November 2017 Lords Chamber

[Baroness Sugg]

My Lords, shining a laser at pilots or drivers is of course incredibly dangerous, and we are looking at how to address that. The legislation I am discussing today refers solely to drones and not to lasers.

[Lord Berkeley (Lab)]

My Lords, can the Minister explain to the House who is going to catch the perpetrators who fly drones illegally? What are the Government going to do about it, and what kind of penalties could there be? There are so many flying around today—who is going to identify and catch them?

[Baroness Sugg]

My Lords, as I mentioned, we will extend police powers in the legislation. I am sure your Lordships understand that it is sometimes a challenge to link an operator to a drone. We are trying to help address that by introducing a registration system, and we are investigating electronic identification. We are looking at putting powers in the legislation for the police to require drone users to produce registration ID and documents and to land their drones, and to search for and seize a drone when there is reasonable belief that a crime has taken place. We very much hope that that will enable police to capture people who are misusing drones.

HS2: Economic and Environmental Impact

Lord Berkeley Excerpts

Thursday 16th November 2017 Grand Committee

[Lord Berkeley (Lab)]

My Lords, the points made by my noble friend Lord Stevenson about the hybrid Bill process are very interesting. I will not speak about them today but I think they need further debate, starting from the basis of why building a new railway is so different from building a new road. It needs modernising; we have talked about it before but we will return to it some time, no doubt.

As has been suggested by a few noble Lords, I will talk about the costs of HS2, because my noble friend Lord Snape talked about a lot of the benefits. I support the scheme—I have said it before, on the record, and I still say it—but I worry about the amount of money that has been committed and will be committed, whether it is good value and what can be done about it. It is interesting to reflect that the recent settlement of about £45 billion for Network Rail for the next five-year control period is to keep the whole of the network operational and safe, not including enhancements. Compare that with the cost of HS1 phase 1: £24 billion, which is about half that figure, or £48 billion if you include phases 2A and 2B, once the five-year period is over. In the Government’s figures, the cost of phase 1 is 50% of all the money given to Network Rail to keep the network going. We can debate whether that is a good balance, but the problem is that very few people outside the Government believe that £24 billion is the likely outturn cost of phase 1, as said by the noble Lord, Lord Framlingham.

I have spoken about working on useful alternatives before; I will not repeat them, but there are issues with Wendover, such as the cost of the trains and the speed of the line. The estimate that we came up with, which started off in the appearance of a friend of mine before the House of Lords Select Committee, suggested that the costs, if aggregated for the whole of phase 1, would come out at about double the cost that the Government were estimating for phase 1 of HS2—about £48 billion. Adding phases 2A and 2B would take us up to £100 billion. In the committee, we were never challenged by those at HS2; they said they did not agree, but I asked them where the evidence of their disagreement is and we still do not have it. I am still in discussion with Paul Maynard, the Minister responsible—I will come back to that—and I would like an answer on how the department came up with the cost estimate and where we differ. We must discuss that. It is surprising that the Government have spent £1 billion on consultants for HS2 so far, but cannot come up with a cost that can be looked at.

Compare that with Crossrail and HS1, as the noble Lord, Lord Freeman, said. Crossrail is on time and on budget, as far as I know; it is a very successful project. HS1 was pretty successful too, so there are ways to get the cost right. Since public money is being spent, it is reasonable to suggest that we should get that.

I have suggested to Ministers and officials ways of reducing the costs of HS2 without cancelling it. I do not want to see it cancelled but the costs need looking at. It is a bit of a vanity project. Initially it was said that trains would run at 400 kilometres an hour. They do not run anywhere in Europe at 400 kilometres an hour, and I do not think they do in Japan either. There is an argument for high speed in big countries—such as France, Germany and Italy—but we are not big. The cost increase of the technology needed to go up from the standard 320 kph to 400 is dramatic. Train manufacturers and the people who design and build the track are talking about something like 30% or 40% on costs to achieve that because it takes more power, the tracks have to be straighter and the tunnels have to be bigger, and we must not forget the extra maintenance cost. Once the trains are there and working, the track and train maintenance is much more expensive.

To be fair, the latest HS2 spec has brought the speed down to 360, which is an improvement. However, there are other ways of saving money, such as stopping at Old Oak Common in phase 1. We have all looked at that and agree it would work. Local people have come up with an alternative for the Wendover tunnel which will work very well. It is cheaper and would reduce the environmental impact. There are many other things which I have not got time to go into.

My real worry—I have had discussions with the Minister’s predecessor, the noble Lord , Lord Ahmad, on this—is whether it is acceptable for so many billions to be spent before there is a firm cost estimate. Demolition has started in Camden—people have been moved out and the ball and chains are starting to fly. We know that this is the kind of estimate at which the MoD is very good when it comes to aeroplanes and battleships and so on, but I am a civil engineer and I expect to get a reasonably firm estimate of a cost before there is a go-ahead to spending so much money.

I hope the Minister will be able to give me some comfort that this can be resolved. Perhaps we can have a meeting. I am due to have a meeting with the Minister, Paul Maynard. The cost needs nailing before it gets to the stage when Ministers say—this may well be after Ministers have changed and so they will no longer be responsible—“Well, it has started and it is too late to stop”.

Railways: Reliability

Lord Berkeley Excerpts

Tuesday 31st October 2017 Lords Chamber

[Lord Berkeley (Lab)]

My Lords, I declare an interest as chairman of the Rail Freight Group. I welcome the Minister to her exciting new post. I hope that she lasts longer than the previous Minister, because we have had a lot of musical chairs in the last week or two—but that is life. I congratulate the noble Baroness, Lady Randerson, on getting this debate.

Noble Lords have spoken already about the importance of reliability and the disasters that happen when things go wrong. Given the growth in passenger and freight traffic in recent years, which is of course very welcome, one of the major issues must be maintenance of the track. When things go wrong, it is quite often due to maintenance—more of the track than of the trains. So it is worth examining whether Network Rail, now owned by the Government, so they can answer for it, has the right equipment to maintain the network to modern standards.

Somebody recently drew my attention to the one train that monitors the electric overhead lines—we need more, but we have quite a lot at the moment—which is based on a 1973 converted coach. That makes it 44 years old, and there is only one of them. So it would be very interesting if the Minister was able to let me have, although I do not expect it from her now, a list of how many track measurement trains there are monitoring the gauge and the railhead conditions. Some noble Lords will remember the gauge and head cracking that happened probably 20 years ago. It is also about how old they are.

Now that Network Rail is divided more into separate routes, it would seem reasonable that each group could actually have its own equipment and be able to buy some decent modern equipment, then be benchmarked by the regulator and its own management as to who did the best maintenance, and who had the least delays due to things going wrong with the track or the signalling. That would be reflected in their bonuses, in the money that they got from central government—and on the performance of the trains. I am convinced that a little bit of incentive among the routes would bring enormous benefits improving the performance of the whole network, and therefore the performance of the trains.

I want to say a little bit about freight. We have talked about it quite often here. The support for rail freight comes from the Government’s rail freight strategy, the Scottish Government’s rail freight strategy, and the National Policy Statement for National Networks. Certainly, in many parts of the country, the encouragement that Governments are giving to freight is really good. A week ago, I was in Scotland trying to encourage Network Rail to allow timber to be loaded on to the tracks in Rannoch Moor and taken by rail, rather than across the bog, to the local sawmills in Corpach. It was very good to see the way that the Scottish Government and Network Rail were working towards a great solution, and I think they will get it. The Treasury has confirmed investment plans for rail freight in control period 6, which starts in a couple of years’ time, and the Scottish Government have done the same. Rail freight was also mentioned in all the three major parties’ manifestos for the last election.

Growth in rail freight is mainly in the container market and in aggregates and other building materials brought into city centres. The containers need terminals or interchanges where big loads can be made into small ones or transferred to road for the last few legs. I was pretty surprised and distressed last week to see the National Infrastructure Commission’s report, Congestion, Capacity, Carbon: Priorities for National Infrastructure, which said that the commission believes that,

“the pilots of ‘platooning’ truck convoys on motorways … may open the way to radical improvements in the efficiency and capacity of major freight distribution by road in the future … This would free up rail capacity for enhanced commuter and inter-city passenger services”.

The National Infrastructure Commission seems to be contradicting not just the policies in the documents I have mentioned but current thinking across the industry. In so doing, it is putting at risk a very large amount of private investment which is going into these terminals, on the basis of absolutely no evidence that I can see. They just thought it was a good idea and they would mention it. The people who live near some of these terminals do not like it very much. They have already cottoned on to this and are putting tens of millions of pounds of investment at risk. I hope that when the Minister responds she will be able to confirm her support for rail freight and for these investments. If the National Infrastructure Commission is going to come out with statements like this, it would be quite nice if it could provide some supporting evidence for a complete U-turn in policy. I hope the Minister will say something like, “They are independent and would say this, wouldn’t they”.

The railways have a really great future, for passengers and freight. The traffic is growing in a way that it is not doing anywhere else in Europe. We may sometimes worry about reliability, but the quality of service in most places is fantastic. I conclude by commending the Government’s suggestion that there should be contestability for some of the things that Network Rail does. We could try out new ways of reopening lines or enhancing them, such as the east-west rail or some of the enhancements which the noble Lord, Lord Greaves, was talking about. By having it done a different way, possibly with the private sector taking the lead, designing, getting the permissions, building and even operating the infrastructure, you can then contest whether it is more efficient than Network Rail or not. That could be a very useful way forward.

Railways: Capacity

Lord Berkeley Excerpts

Thursday 12th October 2017 Lords Chamber

Asked by

[Lord Berkeley]

To ask Her Majesty’s Government whether they intend to bring forward proposals to create extra capacity on the railways, as outlined in their 2017 manifesto; and if so, when.

[The Parliamentary Under-Secretary of State, Department for Transport (Lord Callanan)]

My Lords, we set out in July requirements for the railway from 2019 to 2024, and we announced today the statement of funds available for it, continuing our record investment in the railways. I am delighted to say that Network Rail will be investing £47.9 billion in our railways over that period. By the end of this year, we intend to publish a rail upgrade plan, which will set out the start of the process of specific rail enhancements that we are investing in. We are fully committed to HS2, northern powerhouse rail and passenger rail franchises, all of which will contribute to this Government’s continuing development and investment in new capacity across the entire network.

[Lord Berkeley (Lab)]

My Lords, I declare an interest as chairman of the Rail Freight Group. I welcome what the Minister has said today and the Secretary of State’s Statement, which refers to continuing investment in the rail freight network. However, the statement of funds available is an eight-page document, four of those pages being blank. When does the Minister intend to put a few a figures in it? I hope that the Government in doing that will provide a holistic solution and commitment to things like the northern powerhouse. We have heard in the past few months about the cancellation of certain electrification projects and then about £5 million to be spent on the digitalisation of one line in the northern powerhouse. The Government are acting as a kind of pop-up café for the railway. I hope that we will have a long-term commitment to an industry that needs long-term funding.

[Lord Callanan]

My Lords, I totally agree—I have given the noble Lord the figures for our long-term commitment for the control period from 2019 to 2024. He mentioned northern powerhouse rail. Let me tell him exactly what we are doing. We are spending £13 billion on northern transport in this Parliament, the largest sum in government history, and providing better rail journeys through the Northern and TransPennine franchises and the northern rail project. The train operators, Northern and TransPennine Express, will deliver brand new trains, including more than 500 new carriages, room for 40,000 extra passengers and more than 2,000 extra services a week. By 2020 all the trains will be brand new or completely refurbished and all Pacer trains will be gone. We are committed to northern powerhouse rail and are getting on with delivering it.

Monarch Airlines

Lord Berkeley Excerpts

Monday 9th October 2017 Lords Chamber

[Lord Callanan]

I thank my noble friend for his comments. I will certainly do that. Of course, we are all happy to criticise government agencies and organisations when things go wrong—quite rightly—but in this instance we should pay credit to those who have put so much work into organising this rescue operation. I am pleased that his repatriation flight worked well. The Secretary of State visited the first repatriation flight at Manchester Airport and I visited Leeds Bradford Airport to meet repatriated passengers. I was met with almost universal praise from those people for the way that the problem had been handled and the way they had been met in foreign airports by both Foreign Office staff and government surge team staff who were sent out to assist with the efforts in over 40 airports across the continent. On this occasion, things have gone extremely well. We still have a few more days of the operation left so we should perhaps not speak too early, but so far it is looking very good and we should thank the agencies involved.

[Lord Berkeley (Lab)]

My Lords, I am sure the whole House is grateful for what the Government have done with the CAA to sort out this urgent problem. I am sure contingency plans were in preparation for many months. It happens on the railways, too, when a passenger franchise goes bust or similar. But my worry is that there is a much bigger problem sitting on the sidelines in the shape of Ryanair, which seems to have forgotten that its pilots need holidays. Enormous numbers of flights have been cancelled—probably many more than in the case of Monarch. Where it will all end up we do not know. The passengers have probably had a much more difficult time sorting out how to complete their journeys than the Monarch passengers because the CAA was well organised. Will the contingency plans that have worked so well in this case be available in the future for other potential failures, whether the airline concerned is registered in the UK or not? I hope the answer will be yes.

[Lord Callanan]

The noble Lord is tempting me to comment on the financial health of airlines but it would be wrong to do so. I think I have been robust in the conversations and exchange of correspondence I have had with Ryanair. The company’s actions and the way it treated passengers during the flight cancellations were disgraceful and it certainly misled me when I wrote to it about the cancellations. I have made that extremely clear to Mr O’Leary in writing. While it is the responsibility of the CAA, we will not hesitate to ensure that the passengers of Ryanair or any other airline get the compensation that they require and that Ryanair and other airlines fulfil their legal responsibilities to let people know the terms of the EU 261 directive. We will not hesitate to take action through the CAA to ensure that they do so.

Roads: Congestion

Lord Berkeley Excerpts

Tuesday 5th September 2017 Lords Chamber

[Lord Callanan]

I thank my noble friend for her Question. She makes an important point. She is right to highlight local road congestion and its impact on the economy and productivity. I will discuss her suggestion with my honourable friend Jesse Norman, the Roads Minister, but I will give her a few related facts.

As I said, we are investing record amounts in England’s roads. Of the £23 billion that I mentioned, which we are set to spend between 2015 and 2021, £15 billion will be dedicated to the upgrade of our strategic roads and motorways and major A roads, and the rest is to improve our local roads. The spring 2017 Budget announced that the National Productivity Investment Fund will allocate £690 million for local authorities in England for local transport networks from 2018-19 onwards. Some £490 million of that is available for the financial years 2018-19 and 2019-20 and will be allocated through a competition, which has already been launched, for which we have received 145 bids so far. We will announce the winning bids later this year.

[Lord Berkeley (Lab)]

My Lords, will the Minister commit to giving the same proportion of investment to the railways to reduce congestion and improve reliability?

[Lord Callanan]

As the noble Lord is aware, we are undertaking the largest programme of investment in railways since the Victorian era, so I am proud of our record of improving the railways. Of course, there is always more to be done, but we are having a pretty good stab at it so far.

Transport: Remote Island Communities in England

Lord Berkeley Excerpts

Thursday 20th July 2017 Lords Chamber

Moved by

[Lord Berkeley]

To move that this House takes note of the transport needs of remote island communities in England.

[Lord Berkeley (Lab)]

My Lords, I am very grateful for the opportunity to debate the transport needs of remote island communities in England, and it is my first opportunity to debate with the new Minister, whom I of course welcome.

There are not many remote islands in England. I was advised by the clerks that I could not mention the Isles of Scilly by name, but we have a few other islands in England, which the House of Lords Library has included in its very helpful briefing, including the Isle of Wight, the Holy Island of Lindisfarne, Lundy and the Farne Islands. I hope that I have not forgotten any inhabited islands but we shall see.

I question whether the Isle of Wight really is remote. It has several competing ferry services, so it is nothing like as remote as the Isles of Scilly. However, it has transport problems, which were ably challenged by the previous MP, Andrew Turner, and are now being taken forward by the new MP, Bob Seely. Bob Seely has also taken the initiative of forming an all-party group for islands. I have joined it and am pleased that Derek Thomas, the MP for St Ives—and Scilly—has, too. I hope that many noble Lords, as well as Members of the House of Commons, will join it. Derek continues to work hard to improve the transport services to and from Scilly. I shall concentrate my remarks on Scilly, which I think is pretty unique within England.

First, I declare an interest. My wife is a councillor on the Council of the Isles of Scilly. She is also the co-ordinator of FRIST—Friends of Isles of Scilly Transport. She has lived on the islands for 40 years. FRIST’s campaign slogan is to create,

“reliable, affordable, all year round lifeline transport links with the mainland”.

My links with the Scillies go back to 1707, when an ancestor of mine was with Admiral of the Fleet Sir Cloudesley Shovell, whose fleet got wrecked off the Isles of Scilly on the Outer Gilstone Rock, with the loss of about 2,000 lives. It was a very big disaster. My director ancestor—a future Earl of Berkeley—was in the ship behind that went on to the same rock but got washed off, otherwise I would not be here today. I am very pleased to be here today.

If you ask any islander what is the biggest challenge they face on Scilly, their answer is transport to and from the mainland. It is vital for the economy and for the islanders’ welfare and social fabric. The cost of living there is much higher. To take one example, building materials cost 40% more on the main island, St Mary’s, and 60% more on the four inhabited “off islands”.

I will briefly explain the present transport services. We have the “Scillonian” ferry service, which is celebrating its 40th birthday this summer. I am not sure that “celebrate” is the right word but we can debate that. It operates six or seven days a week from Penzance to St Mary’s, from March to November, but there are no passenger sea services in winter. There is a freight ship that operates two or three times a week, and a fixed-wing air service from Land’s End, Newquay and, in the summer, Exeter to St Mary’s. All the above are operated by one company, the Isles of Scilly Steamship Group. There was a helicopter service until 2012, when it closed. A new service is planned with a new heliport in Penzance, but the planning permission for that has been challenged by a judicial review by the steamship company. The company denies that it is a monopoly, saying that it is just a sole operator, which is an interesting definition of the words. It says that anyone else can start a service. But woe betide anyone who tries—they will get a judicial review thrown at them, on the most spurious grounds, in my view.

Turning to the costs, the single fare on the “Scillonian” is £55 and by air from Land’s End it is £80. That means that for a family of four—two adults and two children over the age of two—the cost would be well over £500 return, and you would have got only to the mainland, not to the end of Cornwall.

One of the biggest problems is reliability. The “Scillonian” gets cancelled very occasionally—it is very reliable—but flights are frequently cancelled due to the weather. In winter, 49% of the flying hours from Land’s End are disrupted. This a very high figure and there is no ferry on which people can go instead. It can mean that islanders are cut off for several days, usually due to fog or low cloud.

People suffer badly as a result of having only these unreliable flights in winter. People travelling for health appointments on the mainland can get stressed by the uncertainty. We were recently contacted by a woman patient who was unable to fly on that day because of fog who said that this was the eighth appointment that she had had to miss. Another patient attending hospital on the mainland for a scan was informed by the hospital, “If there is one more instance where you do not turn up you will not get a scan”. That is painful and horrible for people. The worry is that these instances are typical rather than exceptional. It is especially serious for people who are on a course of chemotherapy. If you want to go to a meeting you have to leave a day or two early, as do people booked on holidays, to make sure that you get to the mainland, because there is no through ticketing or code sharing.

Conversely, in summer the air service and ships are often full up—at this time I have friends who cannot get across for several days—and so the islands desperately need more capacity in the summer and an affordable and reliable winter service, preferably by ship. The helicopter will help when it starts but it will not be sufficient.

The freight situation is bad—I have a great interest in freight, although there is no rail freight to Scilly—because the steamship company appears to charge according to the whim of the staff or directives from the management. There is no transparency over the charges or even a written price list. It charges extra or delays shipping and customers can have their goods lost or damaged, as anyone who is brave enough to challenge the company frequently finds out. I have many examples of this but, sadly, I do not feel able to name names because there is a real fear among the people and companies involved that they will be added to the black list.

I will give one or two examples without names. One customer said that there is a considerable variation in freight charges, made worse by the lack of transparency. He said that eight boxes weighing 80 kilograms came in at £15.82, whereas another seven boxes from the same consignment, with the same weight of 80 kilograms, came in at £18.35. Surely there must be a price list. A second customer has strong evidence of predatory pricing, which gives an unfair advantage to the local subsidiaries of the steamship company. I suspect the CMA will want to investigate that. It should.

A third resident, a businessperson, surveyed 50 logistics companies which regularly deliver to Penzance for the islands. It is a long story but, frankly, the whole service is a disgrace, a shambles. You do not know when the freight is going to arrive or how much it is going to cost, and sometimes the company turns away deliveries at Penzance for the most spurious reasons, including slight damage to a pallet. That is crazy. He points out that the quay staff are wonderful but that communication with management does not seem to exist. His conclusion is that freight issues are stifling investment in the islands. He says that change must come to this unacceptable situation. I entirely agree.

Visitor numbers are now the mainstay of the island economy because the trade in flowers and so on has reduced over time. There is general agreement that there is plenty of space for more visitors, especially in the shoulder and winter months, but in June the air service was 2,000 passengers down on last year, largely due to fog disruption. That has a serious effect on the operators of holiday accommodation. One person told me that he is losing business because of it. He said, “The current service is not fit for purpose and the islands are losing business as a result”. That is a common complaint.

Let us compare these problems with Scotland, where the Scottish Government and the local councils support island life in a number of ways. Ferries are often operated by charging passengers on a road-equivalent tariff and commercial services often run alongside the subsidised ones. But the key difference is that services are much more frequent and fares are lower than the equivalent service for the Isles of Scilly.

I could go on about this for a long time but we need to talk about solutions. After a number of years of disagreement both within the Isles of Scilly and with the mainland about what could be done, there is now a new council with a new commitment to work together to find solutions, and I certainly welcome that. Some years ago, Ministers said at a meeting with island representatives, “Come back when you can speak with a single voice”, and of course they were quite right. Now everyone is talking with the same voice—the council, the business group known as the Islands’ Partnership, Healthwatch, FRIST, the community interest company and Cornwall Council, as well as Penzance Town Council. The two councils have done really good work on the infrastructure of the quays and airports, but that is not enough because what is needed is service improvement. The quays at St Mary’s are nice but there is no passenger service in the winter. There is a nice hardened runway at Land’s End but the planes cannot fly in the frequent foggy conditions. The current services are hopeless for anyone who wants to travel with any degree of certainty, whether for business, holidays or hospital appointments. The crews and front-line staff do a great job but they are often let down not only by the weather but by the management.

I am afraid that the situation has all the hallmarks of a lazy monopoly provider which, sadly, is putting shareholders’ returns well before the needs of its customers. I think that three changes are required. The first is competition, something we often talk about in your Lordships’ House. I know that a number of people have asked the CMA to investigate whether there is an abuse of dominant position by the sole operator, and we shall see what it says. However, it would help enormously if the air services and the sea services were run by separate and independent companies. That would bring competition, would, I am sure, improve customer service, and would probably reduce fares. The second change is something known as “aid of a social character” which is allowed under EU competition law. I hope that the Government do not sneak something in to abolish it when we go through Brexit. It would give the islanders a percentage reduction on their fares. The system operates well in Scotland and it is a major benefit to the residents there. The third change is a winter subsidy passenger service contract for a ship service perhaps three times a week to provide a cost-effective service that would be much more reliable and much cheaper than fixed-wing aircraft and helicopters.

Scilly needs something like this. People think that the islands are very beautiful and prosperous, but that is not the case. On 1 June last year the Daily Telegraph reported:

“Between 2014 and 2020, both Cornwall and West Wales will receive over €1,000 (£800) per person from the EU Structural and Investment Fund - similar to that received by Romania and Bulgaria”.


I know Romania well, but do we really want Cornwall and the Scillies to look like that? The present services are not fit for purpose. The new helicopter service will help, but the route needs further competition to improve reliability, reduce costs and see a step change in the freight sector, which generally thrives on competition. This is what Scotland gives its island communities in order to help them sustain their way of life and their economy. Do the UK Government not care about their own islands? They are far fewer in number but they are equally in need of support.

In conclusion, I hope that the Minister will look favourably on the requests I have made, and those from other noble Lords who are to speak in the debate, and that he will agree to meet me and colleagues from the representative bodies of the islands to take forward the discussions. I hope that he will visit the Isles of Scilly to see them for himself, and I hope also that he will not be held up by the air services. I beg to move.

--- Later in debate ---

[Lord Bradshaw (LD)]

My Lords, I shall follow what the right reverend Prelate said. I used to work in Northern Ireland, and the Giant’s Causeway is in some ways a similar tourist attraction. The National Trust does not let you approach close to the Giant’s Causeway. It has a bus service which brings you down the narrow road from the car park, which is not only a bit more remote but is out of sight. The idea of linking an island, where it can be done, with some form of park-and-ride service is a very good one. I cannot see why the people whose cars are driven over there should not pay the cost of it, but somebody needs to get on top of the problem and do something about it.

I thank the noble Lord, Lord Berkeley, for introducing this debate. My relationship with the Isles of Scilly is tenuous. For two periods of my railway career, I was responsible for the railways in Cornwall. On one occasion, I intended to visit the Isles of Scilly, but I was unable to do so because it was foggy. It was summer. Fog does not happen only in winter. It is a perpetual hazard.

The Minister has to ask himself and his Government whether they really value the islands. It has been pointed out by several noble Lords that the Scottish Government do. I have given the example of the Giant’s Causeway. Although it is not an island, it nearly is. Other islands, such as Rathlin Island off Ireland, are valued by the Government. We should turn the Government’s attention to that issue.

In previous debates and in Questions mostly asked by the noble Lord, Lord Berkeley, about the Scillies, the reply from the Government Benches has been that it is an open market and anybody can have a helicopter service or a shipping service if they want to enter the market. Anybody who does must like being invited to put his head into the dragon’s mouth, because they will be set upon by the incumbent.

I shall talk about making things better. I shall not talk about maritime things because I do not know anything about boats and I am sure the noble Lord, Lord Greenway, will tell us more about the ships. In a couple of years’ time, the Great Western railway franchise will come up for renewal. My contacts there tell me that it regards the present sleeper service from Paddington as an act of charity, but that service is improving and it could be made better by two things. First, the Scottish sleeper services are going to be replaced, which will free for other use some of the vehicles presently employed between London and Scotland. I am not talking about a huge increase in capacity, but if the sleeper car train had six sleeping carriages, they would regularly be full, particularly if much more effort was put into promoting tourism within this country—a subject one of my noble friends refers to often. We do not promote our tourist industry.

If there were a decent, regular service, it would make a difference. I am not saying it would solve the problem because the final link has got to be made through the various ideas noble Lords have suggested, but simple things can probably be done before. The Monday morning service coming from Paddington overnight arrives at Penzance less than an hour, I think, before the Scillonian leaves.

[Lord Berkeley]

It is 10 minutes.

[Lord Bradshaw]

Thank you very much. Ten minutes—that is absolutely ridiculous. The Government can do something. I do not accept that they can brush it off and say that is a matter for Great Western. They set the terms of the franchise, and they should be active rather than passive and hands-off.

Can the Minister tell us whether the position of the Scillies will be made worse if we leave the EU—or, to use the Minister’s probable words, when we leave the EU? I prefer the first version. What effect will the decision to leave the EU have on the economy of the Scillies? Are the Government prepared to make some sort of commitment to replace any funding that the Scillies receive?

--- Later in debate ---

[Lord Berkeley]

My Lords, I am very grateful to all noble Lords who have taken part in this debate. We have learned a great deal about the problems and issues around travel and transport mainly to and from the Isles of Scilly. However, it was good to hear the right reverend Prelate talk about the challenges of getting to Holy Island, and the joys and benefits of island communities, with or without cars, once you get there.

All noble Lords who spoke about the Isles of Scilly said that there is effectively a failure of the present market, given that the service is pretty awful and is getting worse, and expressed concerns about the future of the islands unless something is done about that. I am not going to go on for too long about individual contributions but it was interesting to hear the noble Lord, Lord Greenway, talk about the need for a replacement ship. For the last five years, we have heard that the steamship company was going to replace the “Scillonian III”. Two or three years ago, that ship managed to sail for a whole summer without a valid safety certificate because nobody had picked that up. It was not discovered until November of that year, when it was too late to do anything. There is no evidence that that company has the finance, or possibly the ability, to buy and operate a new ship. It says that it has but it has been saying that for five years. Perhaps the “Scillonian” will limp on for another five years and we shall all enjoy going on it. However, there will probably be more constraints with regard to the number of passengers and it still will not operate in the winter.

It is interesting that the Minister’s response basically was that everything was all right and a commercial service is operating. However, we have to reflect on what would happen if that one ship, which is fairly unique, as the noble Lord, Lord Greenway, said, no longer operated. I hope that there are no accidents but it could just break down. I think that it has broken down a couple of times this year and there was no service. What would happen to the islanders in that case? The flights could take a few people and the new freight ship, if and when it is operational, could take a few more, but the island economy would be absolutely devastated, especially in the summer. There may be no definition of a lifeline service but perhaps we should think about what is reasonable in that regard.

The one thing that the Minister did not address was why Scotland is different. Commercial services operate to Islay, which I think the noble Lord, Lord Cameron, mentioned, but there is also a lifeline service. If the Scottish Government look after their islands in that way, why do not the English Government—as I call them—do likewise for the islands for which they have responsibility? We in Britain think that we are an island nation and it is all wonderful. However, it appears that the smaller islands can go hang, although, if they survive, that is quite nice. I hope that we never experience what happened to a little island off the west coast of Ireland, which was permanently evacuated by the Irish Government about 100 years ago as they could not provide a ferry service across a comparatively short stretch of water to give somebody who had just died a decent burial. We have to do better than this. We must all reflect on today’s debate, and I hope that the Minister will be prepared to have a meeting or two when we come back in the autumn to see how we can take this further.

Motion agreed.

Aviation

Lord Berkeley Excerpts

Monday 26th June 2017 Lords Chamber

[Lord Berkeley (Lab)]

Once the strategy is published, will the Minister quote the costs to the public purse of the surface access? My understanding is that those costs for the expansion at Heathrow will be even higher than the cost of the first phase of HS2. Would it not be better to expand our regional airports and to do less in the south-east?

[Lord Callanan]

The costs of the surface access to support the new development at Heathrow, if indeed it proceeds, will be borne by Heathrow Airport itself. Of course we also remain committed to expanding regional airports, a subject dear to my heart, and we will set out our approach in the aviation strategy White Paper that I mentioned earlier.