Oral Answers to Questions

Debate between Lord Johnson of Marylebone and Kelvin Hopkins

Thursday 11th October 2018 Commons Chamber

[Kelvin Hopkins (Luton North) (Ind)]

4. What recent assessment he has made of trends in the cost of railway infrastructure; and if he will make a statement.

[The Minister of State, Department for Transport (Joseph Johnson)]

Information on trends in infrastructure costs on the railways are published by the Office of Road and Rail in its UK rail industry financial report, which is found on its website. Spending by Network Rail was £7.3 billion in 2016-17, an increase of half a billion pounds, or 7% in real terms, on the previous year.

[Kelvin Hopkins]

Since rail privatisation, the costs of rail infrastructure works have gone through the roof, multiplying several times. The Minister may have seen a recently published analysis showing that electrification, for example, now costs seven times more in real terms—stripping out inflation—than when British Rail electrified the east coast main line. Is it not obvious that we should not only nationalise train operations, but rebuild publicly owned in-house works capacity and save billions for the public purse and for passengers?

[Joseph Johnson]

I remind the hon. Gentleman that Network Rail is responsible for most railway infrastructure work in this country and it is, of course, in the public sector. He rightly highlights the need for Government to ensure that they get the greatest possible efficiency and value for money from all our infrastructure investments. That is why we have set up a mechanism to benchmark costs across the industry in the most rigorous way possible so that we get full value for money from the record sums that we are investing in our railways— £48 billion over the next five-year period.

Oral Answers to Questions

Debate between Lord Johnson of Marylebone and Kelvin Hopkins

Thursday 19th April 2018 Commons Chamber

[The Minister of State, Department for Transport (Joseph Johnson)]

In September 2016, the Government published a rail freight strategy setting out a vision for how the freight industry can grow. During control period 5, the Department is investing £235 million to improve the capacity of the network. Further funding for investment in the network will be available in control period 6.

[Kelvin Hopkins]

I thank the Minister for his answer, but is the reality not that only a small proportion of freight in Britain is carried by rail, and that it has been declining? By contrast, a third of all freight in Germany is transported by rail, and in the US the figure is 50%. To achieve a substantial modal shift in freight from road to rail, is it not essential to introduce a much bigger programme—a major programme—of investment in rail freight capacity starting very soon?

[Joseph Johnson]

We share the hon. Gentleman’s ambition to support modal shift. The Government are always interested in hearing about ambitious schemes that would encourage that. As he will know, we recently launched a call for ideas for market-led proposals that will enhance the railway, and I encourage him to take part in that.