Oral Answers to Questions

Lord Hammond of Runnymede Excerpts

Thursday 27th January 2011 Commons Chamber

[Guy Opperman (Hexham) (Con)]

1. What steps he is taking to encourage the take-up of low-emission vehicles.

[The Secretary of State for Transport (Mr Philip Hammond)]

Eighty-four per cent. of journeys are undertaken by car. Tackling car-produced carbon by fostering and supporting the decarbonisation of motoring is therefore one of the Government’s key transport priorities. The spending review announced provision of more than £400 million for measures to promote the uptake of ultra-low carbon vehicle technologies. Those include support for consumer incentives, development of recharging infrastructure and a programme of research and development.

[Guy Opperman]

My local pub, the Battlesteads inn, which is award winning and excellent, has an electric car-charging point. It is one of the few in Northumberland. The problem is that the ability to recharge is dependent on the north-east’s sole recharging point. When will the system be made nationwide?

[Mr Hammond]

As my hon. Friend knows, the north-east is one of the areas that has been selected for support in the plugged-in places pilot, so there will be a roll-out of further charging infrastructure in the north-east. The Government are currently considering the options for a national roll-out of charging infrastructure and how we mandate that. We will publish our decisions in due course.

[Mr Clive Betts (Sheffield South East) (Lab)]

Is the Secretary of State aware of two interesting companies in my constituency? First, ITM Power produces and develops hydrogen-powered cars, with the ability to produce hydrogen in domestic units at home. Secondly, Magnatec attaches electric motors to diesel-powered vehicles, increasing efficiency by 30%. That system has been running on buses in Denver for more than 10 years, but British buses do not seem interested in taking it up. What steps is the Secretary of State taking with the Department to encourage those firms? Would he like to visit the constituency?

[Mr Hammond]

In fact, yesterday, I met a firm developing innovative battery technology in Aberdeen. We are always pleased to talk to companies that are developing low-emission vehicle technology in the UK. We have deliberately made the incentives technology-neutral so that people developing new and innovative systems can get the benefit of them.

[Simon Wright (Norwich South) (LD)]

One of the quickest and cheapest ways in which to reduce vehicle emissions is through more economical driving habits, but I understand that the take-up by businesses of smarter driving training courses has been disappointing. Will the Secretary of State explore the strategies that are open to the Department to increase take-up of those courses?

[Mr Hammond]

The Under-Secretary of State for Transport, my hon. Friend the Member for Lewes (Norman Baker) is looking precisely at how to increase take-up of the smarter driving training courses.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

As the Secretary of State knows, the Department turned down a joint private and public consortium bid, including Cardiff and Bristol councils and the Energy Saving Trust, for a network of electric car-charging points between both cities on the M4. Will he explain to the people of south Wales why he turned down that bid?

[Mr Hammond]

The number of bids exceeded the available resources for the second wave of plugged-in places pilot schemes. All the bids were evaluated, and those that represented the greatest value for money were allowed to proceed. The promoters of the unsuccessful bids have been debriefed by the team in the Department, so they will have a detailed understanding of why their bid, on this occasion, failed. I hope that they will be encouraged to resubmit a bid in the next wave.

[Mr Robert Buckland (South Swindon) (Con)]

2. What plans he has for reform of the rail industry; and if he will make a statement.

[Harriett Baldwin (West Worcestershire) (Con)]

8. What plans he has for reform of the rail industry; and if he will make a statement.

[The Secretary of State for Transport (Mr Philip Hammond)]

Sir Roy McNulty’s rail value for money study has identified areas where significant efficiencies can be achieved. It is clear that the most pressing need is to align incentives across the industry to ensure closer working between Network Rail and the train operating companies. Our franchise reform programme is a key strand in the strategy. Those reforms, together with Sir Roy’s final recommendations, will form the basis of a long-term strategy for the industry. We are committed to publishing those proposals by November 2011.

[Mr Buckland]

Peak-time and season-ticket commuters from Swindon to London on the main line have had to face significant fare increases this month. Will the Government’s new rail franchising reform programme put special emphasis on the need for greater capacity and fairer rail fares?

[Mr Hammond]

We are committed to fair rail fares. Unfortunately, to support the rail investment programme, we have had to project faster-than-inflation increases in fares for the next three years. However, let us be clear: we have to get the cost of our railway down so that the burden on taxpayers and fare payers can be alleviated in future.

[Harriett Baldwin]

It takes 45 minutes longer to travel from London to Worcestershire along the Cotswold line now than it did in 1908. Will the Secretary of State agree to meet me and other representatives of the Cotswold line organisations to see how reform of the rail industry could help improve the timing and frequency of that service?

[Mr Hammond]

I understand my hon. Friend’s concern. Of course, there are far more stops and services than there were in 1908, but I am always delighted to meet her and other colleagues and would be happy to do so on this occasion.

[Mrs Louise Ellman (Liverpool, Riverside) (Lab/Co-op)]

How will the Secretary of State secure better co-ordination, focusing on the interests of passengers rather than for ever dealing with the consequences of fragmentation?

[Mr Hammond]

The hon. Lady is hinting at the fact that, at the moment, far too much time and energy in the rail industry is spent on allocating blame for things that have happened rather than on working out how to prevent them from happening in future. We believe that aligning the financial interests of the train operators and the infrastructure operators, so that they both have a stake in positive outcomes for passengers, is the way forward. We will await Sir Roy McNulty’s final recommendations and set out our proposals for the reform of the industry on that basis.

[Rachel Reeves (Leeds West) (Lab)]

In west Yorkshire, rail fares are set to go up by the retail prices index plus 5% from next year, which is the biggest increase in the country and 2% higher than in other areas. What will the Secretary of State do to avert those crippling hikes for people in Leeds and the rest of the region?

[Mr Hammond]

I cannot avoid the increases in prices to which the hon. Lady refers. They are partly driven by specific increases in rolling stock to alleviate overcrowding in the area. In the medium term, as I said in answer to the previous question, we must drive efficiency in the rail industry, and ensure that the cost base of our railway becomes comparable with those of other European countries, so that the upward pressure on fares can be alleviated.

[Martin Horwood (Cheltenham) (LD)]

I accept what the Secretary of State has said about the cost of the rail network, but does he nevertheless agree that the quality of passenger experience, which goes far beyond mere punctuality, should play a much greater part in the award of future railway franchises, and in their retention by train operating companies?

[Mr Hammond]

My right hon. Friend the Minister of State has published a consultation on franchising reform, in which she referred specifically to considering passenger satisfaction as one of the metrics. My hon. Friend will no doubt have been as delighted as I was to see the Passenger Focus survey this morning which shows that 84% of rail passengers are satisfied with the service that they receive on the railway.

[Maria Eagle (Garston and Halewood) (Lab)]

I welcome the right hon. Gentleman’s decision to continue the rail industry review that was started by the Labour Government. When Sir Roy McNulty publishes his final report in April, the Opposition will support any sensible proposals that take cost out of the industry without reducing the quality of service for passengers. However, does the Transport Secretary agree with me—and with some Conservative Back Benchers, from what I heard in earlier exchanges—that as the cost to the Government of running the railways comes down, the cost to the public of travelling by train should come down as well?

[Mr Hammond]

I am grateful to the hon. Lady for her expression of support for Sir Roy McNulty’s review and I am happy to acknowledge that that process was set in train by my predecessor. I look forward to taking the review forward on a consensual basis. Of course, the objective of driving efficiency in the railway is to reduce the burden on both the taxpayer and the fare payer. I am glad that she recognises that the only realistic way to do that is to reduce the cost base.

[Maria Eagle]

In view of that, does the Secretary of State understand the anger felt by hard-pressed commuters up and down the country who are facing big fare hikes—record fare rises of over 30%—over the next three years, and often worse overcrowding on services that will not really improve over that period? The initial findings of Sir Roy’s review suggested that savings of £1 billion could be found without cutting services, so will the Secretary of State now commit to sharing the benefits of those savings with passengers, and rethink his plan to impose record fare rises?

[Mr Hammond]

Sir Roy McNulty’s suggestion that £1 billion a year could be found refers to 2017-18. It will take some time before we get to that level of achievement, but it must remain our aspiration. In the meantime, the hon. Lady has answered her own question. Overcrowding is a key issue, and if we are to address it we must continue to invest in additional rolling stock and infrastructure on our railways, as we have committed to do. I am afraid that means that the relief that passengers seek will not come in the next couple of years, although it will come.

[Mr John Baron (Basildon and Billericay) (Con)]

3. If he will consider the merits of authorising traffic signals to display only flashing amber aspects in the early hours of the morning to reduce journey times.

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[Diana Johnson (Kingston upon Hull North) (Lab)]

4. What assessment he has made of the effect of the outcome of the comprehensive spending review on road improvement schemes in east Yorkshire.

[The Secretary of State for Transport (Mr Philip Hammond)]

There were three road improvement schemes in east Yorkshire under consideration at the time the spending review was announced. Of those schemes, the Beverley integrated transport scheme has been classified as in the development pool and the A164 Humber bridge to Beverley improvement scheme has been classified as in the pre-qualification pool. Both are currently subject to the prioritisation process set out in the document that was made available to Members in this House on 26 October.

The Highways Agency scheme to improve the A63 Castle street in Hull has been identified as a scheme with a positive business case for potential construction in future spending review periods.

[Diana Johnson]

As the Secretary of State has said, in the October announcement the upgrade of the A63 was put back until at least 2015. Since then, we have had the announcement from Siemens that it will develop the green energy industry along the Humber. In light of that announcement, will the Secretary of State think again? The A63 upgrade would have a positive impact on the economic regeneration of east Yorkshire and local businesses are really pushing for it.

[Mr Hammond]

I am aware of the relevance of the A63, having sat in a traffic queue on it not so long ago. The Highways Agency budget for the current spending review period has been allocated to schemes that have been approved to proceed, so there will be no more funding available during the funding review period. However, that scheme is value for money and I expect it to go forward in a future spending review period.

[Angie Bray (Ealing Central and Acton) (Con)]

5. What assessment he has made of the effects of the ending of the west London extension of the congestion charge zone.

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[Gemma Doyle (West Dunbartonshire) (Lab/Co-op)]

10. When he plans to publish his proposals for the modernisation of Her Majesty’s coastguard.

[The Secretary of State for Transport (Mr Philip Hammond)]

The consultation on proposals to reconfigure coastguard maritime rescue co-ordination centres was launched on 16 December and will run until 24 March 2011. After that all responses received will be reviewed and analysed before we make a decision. At present there is no final timetable for the decision, as the time required for analysis will depend on the volume of responses received. In our view, it is more important to make the right decision than to make a quick decision.

[Gemma Doyle]

I have been contacted by several constituents who are concerned about the proposal to close Clyde maritime rescue co-ordination centre. They are worried that the loss of local knowledge will risk coastal safety in and around the waters of the Clyde. Will the Secretary of State give a commitment to listen carefully to those concerns about the closure of coastguard stations and, in particular, rethink the proposal to close Clyde MRCC?

[Mr Hammond]

Of course we will give careful consideration to all the representations made in the consultation. I should emphasise to hon. Members that we are talking about search and rescue co-ordination centres. They are not front-line delivery points; they are the centres that manage and co-ordinate the calls coming in, and task the front-line rescuers. The driver for the change is managing the work load and interlinking the centres across the country, so that they can best manage fluctuations in work load and provide a 24-hour competent service.

[Mr Adrian Sanders (Torbay) (LD)]

Have not the regional fire centre proposals, which were based on pretty much the same principles, been abandoned? Was not consideration given, before the consultation paper was published, to where this could end?

[Mr Hammond]

Indeed; I looked at precisely that point. The difference is that fire and rescue services are localised—there are different fire and rescue services around the country. Her Majesty’s Coastguard is a national service, operating as such, and the reconfiguration will provide nationally networked co-ordination centres that will deliver across the whole country.

[Jim Fitzpatrick (Poplar and Limehouse) (Lab)]

Today’s Liverpool Echo calls into question the genuineness of the consultation on the coastguard service. If we take into account the scrapping of Nimrod, the ending of the emergency towing vessel contracts, the selling off of air-sea rescue, the prospective closure of coastguard stations and the sacking of coastguards, what assurance can the Secretary of State give to shipping, where there is real concern about the future of safety? Can he assure us that there will be no compromising of maritime safety?

[Mr Hammond]

It is a bit rich for the hon. Gentleman to talk about the selling off of search and rescue, when the search and rescue private finance initiative project was initiated by the Government in which he served and had been running for at least three years before the general election. On the specific point about the Liverpool coastguard co-ordination centre, Ministers looked at the proposals made by officials in the Department and judged that the decisions to be made between Belfast and Liverpool and between Stornoway and Shetland were so close that the consultation should go forward while making it clear that there was a judgment call to be made within each of those two pairs of stations. There was not a clear and definitive business case, which I think is what has given rise to the story in the Liverpool Echo to which the hon. Gentleman has referred.

[Mr Iain Wright (Hartlepool) (Lab)]

12. What plans he has for the future of bus services.

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[Mark Lancaster (Milton Keynes North) (Con)]

T1. If he will make a statement on his departmental responsibilities.

[The Secretary of State for Transport (Mr Philip Hammond)]

Since I last answered questions, I have published details of our proposed route for high-speed rail, launched the local transport White Paper, including the bidding guidance for the £560 million local sustainable transport fund, set out our proposals for reforms to the rail franchising system, which will deliver better value for money for taxpayers and better service to passengers, and announced tough new measures to tackle uninsured driving.

[Mark Lancaster]

Investment in the west coast main line is most welcome but mainly benefits long-distance travellers, while short-distance travellers remain overcrowded. Is there any light at the end of the tunnel for Milton Keynes commuters?

[Mr Hammond]

There are two separate lights at the end of the tunnel—[Interruption.] Neither of them is a train coming the other way. First, as my right hon. Friend the Minister of State said earlier, 106 additional Pendolino carriages for the west coast main line have been ordered and will come into service in 2012. Secondly, as the proposed HS2 line, if approved, is built it will provide massive additional capacity on the London-west midlands route, and capacity will be freed up for new high-speed, longer-distance commuter services from places such as Milton Keynes to London.

[John Woodcock (Barrow and Furness) (Lab/Co-op)]

Ministers have spent weeks creating confusion over fuel prices. Will the Secretary of State say what he plans to do to help hard-pressed motorists? If he is so concerned now, will he say whether he thought it was fair to impose a VAT hike on fuel just three weeks ago?

[Mr Hammond]

The hon. Gentleman is a spokesman for a Government who proposed the fuel price increases that are now coming into effect, and who were planning to put VAT up, as we discovered from leaked documents before the general election. I am pleased to say that it is not my business to do anything about this, as it is a matter for the Chancellor of the Exchequer.

[David Morris (Morecambe and Lunesdale) (Con)]

T3. Some 84% of rail users are currently satisfied with their service. Does my right hon. Friend agree that that is welcome news, and will she elaborate on that statement?

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[Mr Dave Watts (St Helens North) (Lab)]

T2. Has the Department carried out a study of the likely effects of massive rail and bus fare increases on the number of people who are able to use such services in the future?

[Mr Hammond]

The Department did, of course, carry out the usual equalities impact study that is required, before making the proposals. There is a hidden premise behind the hon. Gentleman’s question. Nobody increased rail fares ahead of inflation happily or gladly. The decision whether to protect the planned investment in reducing overcrowding by delivering additional rolling stock, or to scrap that programme, was a difficult one. We decided to protect investment for the medium and long term, and unfortunately that means three years of further above-inflation rail fare increases.

[Richard Harrington (Watford) (Con)]

T4. Many of my constituents and those of other Members were severely disrupted by the effects of the weather on airports in London and elsewhere. Does the Minister agree that the Civil Aviation Authority needs more powers to assess the situation and hold airport operators to account?

[Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

The marine environment is dangerous, and we are fortunate to have Stornoway coastguard, which is based in my constituency. However, I have been told that the Government’s reorganisation proposals are not accompanied by any proper risk assessment. Is that true?

[Mr Hammond]

Of course the proposals have been risk-assessed. They have been around for more than two years, since before the general election, and there is a long slow-burning fuse behind them. They are now out for consultation, and the hon. Gentleman can and, I am sure, will make forcefully the case for retaining the station in Stornoway.

[Mr Robert Buckland (South Swindon) (Con)]

T5. Can the Minister give us a likely date for the decision on electrification of the Great Western line to Swindon and beyond?

[Andrew Miller (Ellesmere Port and Neston) (Lab)]

You will recall, Mr Speaker, the procedural exchange that you and I had earlier this week about the failure of the Department for Transport to answer questions about river and port pilotage. The first question has now been answered inaccurately; as for the second, the Department refuses to publish the advice that it has received. This is a fundamental matter of safety. Will the Secretary of State examine it personally and review the decision to refuse to publish the information, in order to give us confidence that our pilots are properly trained?

[Mr Hammond]

I am not aware of the written answer to which the hon. Gentleman refers, but I will look it up when I return to the Department, and I will write to him.

[Mark Pawsey (Rugby) (Con)]

T6. In my constituency, an average of 27 people a year are killed or seriously injured in crashes involving young people. That includes a tragic accident over the Christmas period involving a friend of my son. Graduated driver licensing, enabling a new driver to proceed to a full licence over a period, has been shown in many countries to reduce the number of casualties in that vulnerable group. What discussions has the Secretary of State had about introducing such an approach to improving road safety in this country?

[Mr Hammond]

My hon. Friend will know that the United Kingdom actually has an enviable record on road safety. Many of the countries that operate graduated licensing suffer worse safety records than the UK. Our policy is to avoid additional regulation whenever possible, and we would be very concerned about imposing any regulation that reduced the mobility of young people who had acquired driving licences, because of the impact that it would have on their participation in the labour market and in further and higher education.

[Dame Anne Begg (Aberdeen South) (Lab)]

Apropos the disruption at Heathrow, the temperature has dropped again today. Ministers need not go abroad to find examples of the way in which airports can cope with snow. Aberdeen airport, which is also owned by BAA, managed to cope perfectly well with 2 feet of snow, while Heathrow was closed for nearly two weeks because of 2 inches of snow. What guarantee will the Government give passengers—not just those like me, but the many people who travel through Heathrow, which is one of the major hubs—that such disruption will not occur again?

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[Mark Tami (Alyn and Deeside) (Lab)]

I heard what the Minister said about uninsured drivers, but what thought has he given to requiring drivers to put details of their insurance on the car windscreen, which works well in a number of other countries?

[Mr Hammond]

The hon. Gentleman may know that the Department has introduced a programme of rolling monitoring of insurance, where anyone whose vehicle is uninsured now has to make what is, in effect, a statutory off-road notice declaration. The police will have access to the database and will be able to monitor, in real time, whether vehicles are insured or uninsured. That will give rise to a much more effective level of enforcement.

[Eric Ollerenshaw (Lancaster and Fleetwood) (Con)]

T8. I know that the Minister is aware that Fleetwood has a railway line that has been redundant since the 1960s but which has most of its infrastructure intact. What hope can she offer my constituents that there may be a chance of reopening the line and providing much-needed regeneration to the town?

[Grahame M. Morris (Easington) (Lab)]

What assessment has been made of increasing fuel prices and the rising costs of motoring in rural areas, particularly for lower-income households?

[Mr Hammond]

No specific assessment has been made by my Department, but I can tell the hon. Gentleman that independent assessments suggest that between 1997 and 2010 the real cost of motoring has declined by 7%.

The Minister for Women and Equalities was asked—