Rail: Great Western Passenger Franchise

Lord Bradshaw Excerpts

Tuesday 31st January 2012 Lords Chamber

[Earl Attlee]

My Lords, I hope that the noble Lord contributes to the consultation, because he makes some valid points.

[Lord Bradshaw]

My Lords, will the Minister address his mind to the fact that, on many of the franchises throughout the kingdom, the carriages in use are full to overflowing, but the Department for Transport holds the trump card in the acquisition of new rolling stock, because it has to give permission before that can be done? Under the new franchise, does he envisage that whoever wins it or other franchises will have reasonable freedom to negotiate, without the dead hand of the department?

[Earl Attlee]

My Lords, the reason why it is necessary for the department to have the final say is so that it could take over the franchise and run the rolling stock. The noble Lord, Lord Snape, talked about the franchisee handing in the keys. Franchisees might want to do that if they negotiated a rolling stock agreement that had a balloon payment right at the end. Obviously, the department would refuse that. We are very keen that bidders are able to negotiate freely with the rolling stock companies, with the exception of the IEP, on this franchise.

Railways: Train Design

Lord Bradshaw Excerpts

Thursday 12th January 2012 Lords Chamber

Asked by

[Lord Bradshaw]

To ask Her Majesty’s Government, following the recent award to Bombardier of the contract for 130 new carriages, what further plans they have for maintaining train design or manufacturing capacity in the United Kingdom.

[Earl Attlee]

My Lords, we believe that in most cases the procurement of rolling stock should be led by the rail industry, but in cases where the Government are involved we will take on board the conclusions of the Government’s recent review of procurement to give suppliers confidence to invest in their capability to meet future demand by publishing pipelines of future government needs and taking action to remove barriers to growth.

[Lord Bradshaw]

The announcement of the new train order to Bombardier took place 1,000 days after the last order was placed. There is no doubt that the Government are deeply involved because the short term of franchises means that no rolling stock company can get its money back in the duration of the franchise. The Answer that I have been given is quite disingenuous. I really want some assurance that British industry will be supported. It has only 100 days work from this new order and it is time that something was done to extend that period.

[Earl Attlee]

My Lords, noble Lords will know that this Government have made considerable investment in the rail industry and will continue to do so. Noble Lords should also be aware that there is considerable refurbishment work available on the existing rolling stock in order to make it compliant with new accessibility requirements.

Railways: High-speed Rail

Lord Bradshaw Excerpts

Tuesday 10th January 2012 Lords Chamber

[Earl Attlee]

The noble Lord makes an important point. I referred earlier to the work that both Houses did on the Channel Tunnel Rail Link Act. Local people were able to petition if the developers had not privately met their needs. The effort expended during that planning process has clearly given us long-term benefits. However, it is important not to short circuit the approval process of this project, otherwise we could face serious problems when we try to start the construction phase. That would be much more expensive than doing it properly in the first place.

[Lord Bradshaw]

Will the Minister consider the methods of appraisal that are likely to be used in producing the economic case? We now use economic measures that were developed in the 1960s and used on the Victoria line and on motorways. These put excessive emphasis on values of time and mean that the discounted cash flows which apply almost run out in 20 years. If we are building a line that will last 120 years, which I think it will, perhaps the noble Earl could ask his right honourable friend the Minister whether there should not be a reappraisal of how we look at these schemes, and to bring forward a different scheme from the one that is used now—which employs lots of people but produces nonsense results. I can assure him that that is the case.

[Earl Attlee]

My Lords, the noble Lord has made this point more than once. I suspect that it has some validity, and at a suitable opportunity I will discuss it with ministerial colleagues.

Cycling: Accidents

Lord Bradshaw Excerpts

Thursday 8th December 2011 Lords Chamber

[Lord Haskel]

My Lords—

[Lord Bradshaw]

My Lords—

[Lord Strathclyde]

My Lords, we have not heard from the Benches behind us.

[Lord Bradshaw]

Does the noble Earl agree that there is antipathy between all classes of road users? For example, bus drivers hate cyclists, pedestrians hate cyclists and motorists hate lorries. However, it is important that the classification of what PCSOs and local authority wardens are able to do is reviewed, and ensure that all chief constables and wardens have the powers, which I do not believe they do, to intervene not just in cycling on pavements but also in all sorts of moving traffic offences.

[Earl Attlee]

My Lords, the Question is essentially about cycling, and in respect of offences, I have already said that education is more important than enforcement, especially with youngsters. Frankly, it is not realistic to issue a fixed penalty notice to a 10 year-old.

Renewable Transport Fuel Obligations (Amendment) Order 2011

Lord Bradshaw Excerpts

Tuesday 6th December 2011 Lords Chamber

[Earl Attlee]

My Lords, I beg to move the Motion standing in my name on the Order Paper.

[Lord Bradshaw]

My Lords, before the Motion is put to the House, I should like to draw to the attention of the House the fact that the report of the Merits Committee on this order was published last Thursday. Nine noble Lords then debated the order yesterday in the Moses Room so we all expected that some notice would be taken. This morning the order appeared on the Order Paper and so there has been no opportunity to consider what was said in the Moses Room. This does not reflect well on the House or show that the Government really value the opinions of Peers before they place matters on the Order Paper.

[Lord Palmer]

My Lords, I should like to echo the words of the noble Lord, Lord Bradshaw. Surely it must be an insult to those of us who spent 90 minutes yesterday in the Moses Room in that the noble Earl agreed to come back to several of us on many major points at issue on this extremely complex subject. Now, less than 24 hours later, we are being asked on the Floor of the House to agree to the order.

Renewable Transport Fuel Obligations (Amendment) Order 2011

Lord Bradshaw Excerpts

Monday 5th December 2011 Grand Committee

Nevertheless, we and the rest of the European Union stand quixotically alone, insanely trying and thankfully failing to lead the world in the practice of economic suicide. Eventually this policy will collapse around our heads—and the sooner the better.

[Lord Bradshaw]

I will concentrate my remarks on the used cooking oil industry, which gets a rather raw deal from the Government under these proposals. We have to remember that the business is sustainable, which even my noble friend Lord Reay would admit. Basically, it uses waste products from the cooking industry to make biodiesel. It is a new business—it only really began in about 2007—so is not an industry with any great roots. It is made up mostly of SMEs—small and medium-sized enterprises—and is not dominated by big corporations. There is a real threat that the growth of the industry will be not only stopped but reversed by the passage of this legislation.

Used cooking oil is actually very green compared with fossil fuels—and with many grown crops, particularly if we are not certain of their source. One of the biggest problems in judging whether a crop has been grown in a sustainable way is that the certificates of origin provided by many suppliers are highly suspect. I ask noble Lords to reflect on the last time they bought a piece of teak garden furniture with a label on it saying, “Sourced from sustainable forests”. I would say, “How do you know what went on in Indonesia?”—and I am sure that the suppliers do not, either.

We are talking about recycling a waste product, and the industry works on very tight margins. It is not an industry that has any room for manoeuvre. The Minister replied to a Written Question of mine about the price of a road transport fuel obligation certificate. I believe that the prices he quoted in his Answer were from a few big dealers, whereas most of the trading takes place between small industries, which we do not know anything about. However, the figures that he quoted, which indicated a doubling of the price of certificates, should be contrasted with the fact that on some occasions the certificates are worth nothing. Twice nothing is nothing, so doubling the price has not had a great effect.

This is a retrograde piece of legislation in respect of the treatment of the used cooking oil industry. I say to my noble friend that we are going to risk more unemployment and less expansion of the industry, which has the capability of expanding because there is still plenty of used cooking oil to collect and refine. I have one last question for him and I would be very interested to hear his answer. In view of the withdrawal of the tax differential and the uncertainty over the value of the tradable certificates, would he put his own money into this industry?

[Lord Grantchester]

I recognise the importance of this order for transport and meeting our climate change obligations. Its sustainability provisions are entirely to be welcomed. However, the lengthening of the timescale from 2011 to 2014 is a further example of the Government dissipating the momentum of the last Labour Government. This is impacting further on the confidence of the investor market, as has been identified across the renewable industry in its relationship with this Government.

I have one specific query. I understand that elements of the sustainability criteria are currently being consulted on. The consultation is set to end on 15 December, the date the order becomes operable. I understand that the UK Petroleum Industry Association has lobbied on the penalty of 30p a litre for non-compliance, stating that there is not sufficient time for its supply chains to meet the standards. The association asks that any fines should not apply before 1 April 2012, to allow supply chain purchases and contracts to catch up with the certification process for the biofuel products. The UKPIA states that it does not know whether biofuel products already contracted will meet the certification process and standards. This seems an understandable request. Can the Minister clarify his department’s position?

--- Later in debate ---

The noble Lord, Lord Bradshaw, asked why we have removed the duty incentive in respect of cooking oil. A duty incentive offers no mechanism for addressing concerns about the sustainability and sourcing of the biofuel supplier. Because it rewards both sustainable and unsustainable biofuels equally, it does not give sufficient long-term certainty for potential investors in biofuel production or an infrastructure that helps support a market for more sustainable biofuels. That is why the Government have committed to remove the duty differentials on biofuels.

[Lord Bradshaw]

I believed that the 20p incentive was paid to the people who refine used cooking oil. Now the noble Earl is saying it is available to a wider group of people. It has probably got through to him that the Committee is not overjoyed about this piece of legislation. Will he go back, check this and consider whether producers should be guaranteed to get at least 20 pence? If they get more, that can be offset, but they want a guaranteed floor price.

[Earl Attlee]

My Lords, I will write in detail to the noble Lord on the issue of used cooking oil and see if I can draft a letter that will meet his concerns. At the moment I am convinced that this is a sensible policy.

Transport: London and the Regions

Lord Bradshaw Excerpts

Tuesday 15th November 2011 Grand Committee

[Lord Bradshaw]

I thank the noble Lord, Lord Empey, for introducing this subject. I worked in Northern Ireland for seven years and was an extremely frequent user of the services that were then provided by both BA and British Midland. Of course, BA has abandoned the route and the service has moved to Belfast City airport, but it is still a reasonable service, but, as the noble Lord, Lord Empey, said, it is difficult to envisage people seeking to do business in Northern Ireland unless there is a good quality, guaranteed service from London. Despite what the noble Lord, Lord Berkeley, said, Northern Ireland is particularly isolated because there are no alternatives. You can take the sleeper train to Cornwall or a train to Edinburgh or Glasgow. It may take longer than you wish, but the train takes you into the centre of the city. Also, for most places it is possible to get there and back in a day, provided that you are willing to get up early. When I went to Northern Ireland, I would get on a plane from London airport at 8.15 or 8.30 am, and I could be back in the evening having had a useful day over there.

In response to the Question asked in the Chamber earlier today, the noble Earl referred to the passenger service obligation and said that there was no such obligation so far as air transport is concerned. I take issue with him on that statement because passenger service obligations exist over a wide range of transport needs. The noble Lord, Lord Berkeley, will back me up when I say that on the German railway, there are periods when you cannot run trains through particular parts of the country because of the passenger service obligation imposed by the Länder Governments to stop such trains interfering with the commuter services around the big hubs.

There are passenger service obligations in the form of what are known as public service requirements which are imposed on most railway franchises. Franchisees are not free to cast a service aside. They have to maintain a minimum number of stops and a minimum speed of service. If you look at the services from Glasgow, Edinburgh, Inverness and Aberdeen to the Scottish islands, I think you will find that they are all supported by way of a PSO grant of some sort. So I would ask the noble Earl to go back to his department and say that the answer he was given this afternoon is not the whole story and needs thorough investigation.

In fact, as the noble Lord, Lord Empey, has said, the reason that IAG has put forward a proposition to purchase the slot and the airline, BMI, and the reason that Virgin Atlantic has shown interest is because of the international value of those flights. We have to ask ourselves, as a country, whether we set more store by people going to visit places such as Euro Disney and Florida than we do by the economic health of our own country. We are very good at talking down our own needs, allowing the market to dangle attractive propositions for us, and losing sight of what we are for. The United Kingdom as it stands is the whole of the United Kingdom, and Northern Ireland is part thereof.

I ask the Minister to go away, think carefully about what he has said today and seek further guidance because, on reflection, he will find he is wrong.

--- Later in debate ---

[Earl Attlee]

I am grateful to the noble Lord for that elucidation. The noble Lord asked whether the minimum service levels will be based on the current First Great Western timetable. The proposed approach to the specification of the services for the next Great Western franchise has yet to be developed and would anyway form part of the public consultation.

Many noble Lords have talked about the problem of slot allocation at Heathrow and public service obligations. Perhaps it would be helpful to the Committee if I carefully reiterated the positions. It would be open to the Northern Ireland Assembly to apply to the Secretary of State for Transport to impose a public service obligation on an air route from Northern Ireland to London, should it feel that a case can be made which satisfies the EU regulation on PSOs. If approved, this would permit slots to be ring-fenced at a London airport. As I said at Question Time, there is no other mechanism for the Government to intervene in the allocation of slots at Heathrow or other London airports.

It is important to note that EU regulations state that the PSO must be between two cities or regions and not between individual airports. Therefore, any PSO would have to take into account services to all five London airports. Other European states have exactly the same problems. You may have a region in France that is slightly deprived, and it might want to fly direct to Charles de Gaulle, but it cannot. It might, perhaps, have to fly to Orly and not have the benefit of going to a hub airport. We do not necessarily have a unique problem.

The noble Lord, Lord Empey, suggested that we cannot leave this issue to the commercial market. It is important to note that any PSO on a service to Heathrow could be subject to legal challenge from other airlines. The noble Lord, Lord Bradshaw, talked about the requirements in franchise rail operations, but he needs to remember that airline operations are commercial operations, not franchise operations.

[Lord Bradshaw]

Will the Minister pause there to think of what happens with the services to the Highlands and Islands of Scotland? They are not commercial. They are supported by a PSO agreement.

[Earl Attlee]

My Lords, I was just coming on to that point. The noble Lord pointed out that PSOs already exist on air services to Scottish islands from Aberdeen and Inverness. He is correct. They are supported by the Scottish Government as lifeline services that otherwise would not be economic to operate.

[Lord Bradshaw]

They are lifeline services, but is Northern Ireland’s remaining air service to Heathrow not in the same category because, if it disappears, the region will be in real trouble? This is not a trivial point. You have got to concern yourself with regional development. Next year, Londonderry will be the European city of culture. Perhaps the air service will disappear at the same time.

[Earl Attlee]

My Lords, I understand what the noble Lord is saying, but BMI has not been sold, and no services have been stopped yet. I think he is going ahead of himself slightly.

The noble Baroness, Lady Scott, asked about the Greater Anglia (Short) franchise and customer satisfaction. Although this is a relatively short franchise, she will recognise that Abellio has offered commitments that will improve customer experience. She also asked several other very detailed questions, and I fear that I will have to write to her on those points.

Abellio plans to continue to run all those services that are crowded today or are likely to become crowded in the next five years in the formation planned by NXEA. In almost all cases where crowding occurs today, the trains concerned are being operated at the maximum formation allowed by the infrastructure, so it is an infrastructure limitation, not a rolling stock limitation.

Finally, the noble Lord, Lord Empey, touched on the Thames estuary airport. We welcome the input from the mayor and Lord Foster, and their suggestions will be considered alongside the many other contributions about our future aviation policy. However, such a project would be hugely complex. Detailed consideration would be needed on a range of issues, including airspace capacity, safety and access to the airport as well as costs and funding.

Biodiesel

Lord Bradshaw Excerpts

Tuesday 18th October 2011 Lords Chamber

[Earl Attlee]

My Lords, Treasury Ministers confirmed at the 2011 Budget that the duty differential for biodiesel produced from used cooking oil will end on 31 March 2012, as was always intended. It is appropriate that support for waste-derived biofuels in transport will be provided through double rewards as part of the renewable transport fuels obligation. That, of course, has a sharper sustainability focus. By providing two renewable transport certificates per litre of waste-derived fuel, the UK is moving away from the guaranteed return of 20p provided by the duty differential for biodiesel produced from used cooking oil and moving towards an environment where the competitive market decides the price that will be awarded for each renewable transport fuel certificate. But each RTFC will still be worth around 20p.

[Lord Bradshaw]

Will the noble Earl turn his mind to the fact that the renewable transport fuel certificates, to which he has referred, are tradable assets? They have been often been of no value at all. Anyone investing money in this young industry of processing used cooking oil and other waste products face the possibility that they are being asked to invest money with no guarantee of a return whatever.

[Earl Attlee]

My Lords, my noble friend is absolutely right. RTFCs were traded at a nil value but that was because of an error in the drafting of the original RTFO by the previous Government. That problem has been rectified and will not recur.

Railways: Brighton to London Line

Lord Bradshaw Excerpts

Thursday 6th October 2011 Lords Chamber

[Earl Attlee]

My Lords, the noble Lord raised two points, the first of which is the road. One of the benefits of the proposed scheme is that it allows for the building of a bridge at a later stage should that be necessary. In fact, the scheme makes it easier to open the line, should that be necessary, because to the west of the proposed road crossing is a level crossing, which would be unacceptable if you wanted to open the railway.

The noble Lord asked about the BRPB and whether we would give it directions. No, we will not. It is not necessary. We are absolutely confident that nothing has been done that will compromise the ability to open the railway at some point in the future, should it be desirable to do so.

[Lord Bradshaw]

Will the Minister widen his consideration just beyond this line. There are a number of noble Lords who have in their areas of interest railway lines that could be reopened with advantage in the future. Surely the land concerned should be vested in Network Rail, which in July last year pronounced the Uckfield to Lewes line of strategic importance. There are many other such lines, of which one example is Oxford to Cambridge. This has been made almost impossible to open between Bedford and Cambridge because of building.

Rugby Union: Twickenham Railway Station

Lord Bradshaw Excerpts

Wednesday 18th May 2011 Lords Chamber

[Earl Attlee]

My Lords, I am not completely sure that that is a matter for my department. However, I also understand that, ironically, although rugby union is a contact sport, it actually experiences less bad behaviour than football matches.

[Lord Bradshaw]

My Lords, today is the 776th day since Governments on either side have ordered any new rolling stock for our railways. In circumstances where noble Lords in this Chamber will have found it extraordinarily difficult to get on to trains, and many people are crowded out, how are we going to show the world that we have a railway that is worth using unless some new rolling stock is ordered very urgently?

[Earl Attlee]

My Lords, my noble friend has made some good points and we are working on them.