Defence Procurement

Debate between Lord Hammond of Runnymede and John McDonnell

Tuesday 10th December 2013 Commons Chamber

[Mr Hammond]

I am grateful to my hon. Friend—someone who, again, knows something about this from his long service in the Department. The key distinction is between a model that puts the private sector in day-to-day leadership of the organisation—working on an incentivised fee that places it at risk—and a model where the private sector provides specific skill sets to civil service decision makers. That is the distinction. What we envisage in the DE&S plus model is probably three separate contracts; one to provide us with programme management support, a spine for the organisation; one to provide us with HR support, an area of particular weakness in DE&S; and a task-and-finish project to install some additional financial control systems within the organisation.

[John McDonnell (Hayes and Harlington) (Lab)]

I said on Third Reading of the Defence Reform Bill that having one bidder stretched the concept of competition to absurdity, so I welcome today’s decision. However, there are 16,000 workers whose futures are still vulnerable following the Secretary of State’s statement. May I suggest that it is not just about bringing in expertise; it is about retaining expertise and skills as well? I would welcome the Secretary of State personally meeting the unions to assure them that, under his new proposals, there will be no detriment to their conditions of service.

[Mr Hammond]

I have personally met the unions and I am aware of their concerns. I have also explained to them the opportunities that this model will create for employees in DE&S. The core DE&S—that is to say the part of the organisation that is responsible for procurement —has about 9,500 people. The hon. Gentleman is absolutely right to say that one of the big challenges at the moment is retaining the highly skilled people. We are losing people to the private sector; worse, we are losing people to other parts of the public sector that have greater freedom to hire. That is why we must address this issue in the way I have outlined today.

McNulty Report and West Coast Rail

Debate between Lord Hammond of Runnymede and John McDonnell

Thursday 19th May 2011 Commons Chamber

[Mr Hammond]

I do not want to pre-empt the rail fares policy review, to which I am sure that my hon. Friend will make a submission, but I have recently enjoyed meeting the Northampton rail users group, and the Minister of State has just said that she would be happy to meet the Kettering rail users groups, so perhaps we can carry a dialogue forward.

[John McDonnell (Hayes and Harlington) (Lab)]

I refer to my entry in the Register of Members’ Financial Interests. On a constituency matter, with regard to First Great Western and the handing back of the franchise, I would welcome the Secretary of State or the Minister convening a meeting of the relevant MPs along that line to discuss the security of service provision. This looks like a creeping re-nationalisation of the railway service—but there we are! However, as the Secretary of State said, there is a big staffing agenda. All three rail unions have welcomed the opportunity to work with the Government on that agenda. However, it is crucial that they are represented at every level of the industry and in every forum discussing the staffing agenda. It is not conducive to good industrial relations to have statements about threats of further anti-trade union legislation at this time.

[Mr Hammond]

I will have to disappoint the hon. Gentleman on creeping re-nationalisation: there is not one, and I can assure him that so long as I am in this job, there will not be one. However, I am happy to meet MPs along that route to talk about the Great Western franchise. First Group will continue to operate the franchise until 2013, and it has assured us that it will operate it as normal and run the franchise properly during that period. It has every incentive to do so, because, as I just announced, our policy is that eligibility for participating in franchise competitions will depend on demonstrated ability to deliver co-operative working, and to bear down on cost pressures.

I am absolutely ready to meet the unions. In fact, I think my office is in the process of arranging a meeting with the rail unions through the TUC, which I hope can play a constructive role in this process—it is a process I think we all want—of making this a viable and affordable industry that has a bright future, and which will employ not fewer but more people as the railway expands on the trajectory of current projections.

High Speed Rail

Debate between Lord Hammond of Runnymede and John McDonnell

Monday 20th December 2010 Commons Chamber

[Mr Deputy Speaker]

And now the ever-patient John McDonnell.

[John McDonnell (Hayes and Harlington) (Lab)]

Thank you, Mr Deputy Speaker. I say to the Secretary of State that I am just grateful we are getting a train set for Christmas and not a third runway at Heathrow. He has referred to the Heathrow link, the Mawhinney review and the Arup proposals for a transport hub near Iver and has concluded that there should be a spur to the airport running close to the M25. Does that mean that the Iver hub will or will not take place?

[Mr Hammond]

We do not favour the proposal for the Iver hub as a way of delivering high speed rail passengers into Heathrow. It is worth noting that the proposals that Arup worked up on its own account—it was not commissioned to do so—around the hub at Iver were originally intended as a proposal for getting traffic from the Great Western main line into Heathrow. HS 2 came along as a bit of an add-on to that proposal, and Arup may still wish to pursue it as a proposal that is of interest for that purpose, but it is not our preferred route for getting high speed rail passengers into Heathrow.

Severe Winter Weather

Debate between Lord Hammond of Runnymede and John McDonnell

Monday 20th December 2010 Commons Chamber

[Mr Hammond]

We will, and my hon. Friend’s question has to be addressed to the operators. British Airways made the call on Saturday morning to cancel all flights, because it considered it certain that the airport would have to close. I have spoken to Willie Walsh today, and he has told me that based on the forecast he saw on Saturday morning, any airport anywhere in Europe, bar none, would have had to close. BA therefore made the decision to pull all its flights.

The lesson that is emerging for BAA, which it will take away from the situation, is that it has to be more proactive in examining forward forecasts, and that when airlines do not make a decision to stop flights, the operator might have to make that decision for them, to avoid large numbers of people being stranded in terminals.

[John McDonnell (Hayes and Harlington) (Lab)]

I hope that the Secretary of State will join me in thanking many of my constituents and their colleagues who work at Heathrow for trying to get the airport open and fully operational again in the most difficult circumstances.

I join the hon. Member for Wellingborough (Mr Bone) in saying that the lesson to be learned from the last occasion when such a problem occurred, although not on the same scale, was about information. We thought that lesson had been learned. BAA and the individual airlines must be required not only to take decisions soon enough, but to communicate them proactively and directly to customers travelling with them.

[Mr Hammond]

I am grateful to the hon. Gentleman for giving me the opportunity to record my thanks, and the thanks of the Government, to the hundreds of workers who have been out, often in temperatures of minus 10°C or minus 11° C, clearing snow and de-icing through the night, as well as caring for passengers stranded in terminals. They have done a fantastic job, and I am afraid they will have to go on doing that fantastic job for the next few days.

The hon. Gentleman is also right to focus on information. Nobody likes to have their travel plans disrupted, but one of the interesting features of human psychology is that somehow, things are never quite as bad if people know what is going on. As he will know, we have committed to introducing an airport economic regulation Bill during this Parliament. One thing that we are committed to doing in that Bill is ensuring that airport operators’ financial incentives are clearly aligned with the needs and interests of passengers. I will ensure that supplying information is part of that matrix, so that the operators will do it because it is in their financial interests. That certainly seems to be a motivating factor.

Rail Investment

Debate between Lord Hammond of Runnymede and John McDonnell

Thursday 25th November 2010 Commons Chamber

[Mr Hammond]

The question of brand-new rolling stock versus cascaded rolling stock depends ultimately on the business case that can be made. It is expected that some brand-new rolling stock will be deployed on the Greater Anglia franchise. I cannot tell my hon. Friend that that will necessarily be used on the London-Ipswich-Norwich line, but it is expected that there will be some new rolling stock in that franchise.

[John McDonnell (Hayes and Harlington) (Lab)]

I associate myself with the statements made by my hon. Friend the Member for Ealing, Southall (Mr Sharma). On the High Speed 2 consultation, will the Government be expressing a preference about the Heathrow link based on their acceptance of the Mawhinney report? While the Secretary of State is at the Dispatch Box, will he say when the interim McNulty report will be published?

[Mr Hammond]

Sir Roy McNulty’s interim report will be published shortly. I intend to make a statement to the House in the near future about how we intend to take that process forward, looking at the structure and affordability of the railways. I should make it perfectly clear that the consultation on HS 2 will be around a preferred route. It will be open to other parties to suggest alternative routes, but the Government will put forward one preferred route.