(11 years, 4 months ago)
Written StatementsTransport is an engine for growth and our major roads are vital to the prosperity of our nation, connecting people to jobs and businesses to markets. However, our roads have suffered from a lack of investment in recent decades, and we face rising traffic in the years to come. Without action, this will place severe strain on networks that are already under pressure, worsening the experience of motorists and damaging Britain’s ability to compete.
That is why at the recent spending round we announced a transformational investment in our road network, with £12 billion for road maintenance and a trebling of investment in major road schemes, including the addition of over 400 extra lane miles of capacity, resurfacing 80% of the strategic road network and upgrading our most important “A” roads.
At the spending round Government also announced that they would turn the Highways Agency into a publicly owned corporation with long-term funding certainty and flexibility, backed by legislation.
Today I am publishing a Command Paper, “Action for Roads”, which builds on the investment commitments made at the spending round and outlines the reforms we are taking forward to ensure delivery, including:
Reform of the status of the Highways Agency to make it a publicly owned company.
Mechanisms for funding certainty and flexibility, to allow greater efficiency and to give suppliers the assurance they need to begin training new workers for delivering our future programme.
A clear, long-term roads investment strategy to provide a detailed view of what the Highways Agency will be expected to deliver.
New powers and independence, allowing the agency to operate with greater commercial freedom, deliver with certainty and cut costs.
A “motorists champion” to provide a strong voice for all road users, hold the new company to account and deliver the best performance and value for road users.
I expect these reforms to generate additional savings to the taxpayer of £600 million, while ending decades of underinvestment and uncertainty in our road network. And it will give the construction and maintenance industries the confidence they need to recruit and train skilled workers to deliver this increase in transport projects over the coming years.
When upgrading our network, the focus will be on cutting congestion and minimising the environmental impact of roads. That is why today I am also announcing £500 million by 2020 in additional funding for the Office for Low Emission Vehicles to advance ultra-low emission vehicle (ULEV) technology and encourage people to buy and use ULEVs. In addition, bridges and tunnels will be built to help cyclists and walkers to move between communities where motorways and major A roads make these journeys difficult.
The scale of additional funding being made available for strategic roads will allow more investment in environmental safeguards to help resolve and reduce long-standing environmental problems. These could include better landscaping, tunnelling, “green” bridges and noise barriers to improve roads’ environmental performance.
And the Government will tackle the backlog of maintenance on local roads, spending £6 billion over the next Parliament in addition to the money that councils spend from other sources to reduce the number of potholes. Our overall investment in maintenance will sustain over 11,000 jobs through every year of the next Parliament.
The Government intend to consult later this year on detailed plans for turning the Highways Agency into a publicly owned company.
The document is available at:
https://www.gov.uk/government/publications/action-for-roads-a-network-for-the-21st-century.
Related to the Command Paper, I am also today publishing “Road Traffic Forecasts 2013” and have placed copies in the Libraries of both Houses.
(11 years, 4 months ago)
Written StatementsI am today laying before the House the Government’s response to the Brown review of the rail franchising programme.
Richard Brown’s review was one of two independent reviews I commissioned following my decision in October last year to cancel the inter-city west coast (ICWC) franchise competition and put the wider franchising programme on hold. His review considered the wider implications for the rail franchising programme of the position reached on the ICWC competition, taking into account the findings and recommendations of the Laidlaw inquiry which had focused on establishing what had gone wrong with the ICWC procurement. The report of the Brown review was laid before the House on 10 January this year.
The review was a thorough examination of the issues led by a highly respected industry figure. I welcomed its publication and its conclusion that franchising is a fundamentally sound approach to securing the provision of passenger rail services on which so many people rely.
The review made a number of important detailed recommendations for improving the way franchises are specified, competed for and managed. The Government’s response broadly accepts those recommendations. It records the significant progress we have made over the last six months in implementing them—including restarting the franchise programme, publishing a full revised franchising programme and prior information notice on 26 March and a franchise competition guide on 25 June, and strengthening the capability and governance of the Department’s franchising organisation. We have set out a high-level response to each of the many specific recommendations made—indicating where relevant when and where more detailed information will be provided.
I am confident that this response and the actions we have already taken provide the industry with the clarity and confidence it needs about the way forward for rail franchising, which remains an integral part of our plans to deliver a better and more efficient railway for passengers and the taxpayer.
(11 years, 4 months ago)
Written StatementsIn May 2012 the Government introduced primary legislation to Parliament that would create a new offence of driving with a specified controlled drug in the body above the specified limit for that drug. The Crime and Courts Act 2013 sets out the framework for the new offence.
Regulations now need to be made to specify the drugs to be included in the legislation and the limits to be specified. I have today published a consultation seeking views on these regulations. The proposals follow a report published in March this year by a panel of medical and scientific experts which provided specialist advice to the Government on the effects of specific drugs on drivers’ ability.
The introduction of the new offence will reduce the amount of time, expense and effort involved for the police and the courts when prosecutions fail because of the difficulty of proving that a driver is impaired by a particular drug.
In the consultation we have proposed a zero-tolerance approach to deal with those who drive under the influence of illegal drugs as this sends the strongest possible message that you cannot take drugs and drive.
In taking a zero-tolerance approach to these drugs, the Government propose to set the limits at a level that does not catch someone who has consumed a very small amount of an illegal drug inadvertently. In considering what approach to propose for each illegal drug and what limit to set, the Government have weighed up a number of factors including the evidence about the use of the drug when driving, wider drugs policy, and the findings and recommendations from the expert panel.
After considering all of the above we propose to take a zero-tolerance approach to the following eight controlled drugs which are known to impair driving: cannabis, MDMA (ecstasy), cocaine, ketamine, benzoylecgonine (primary metabolite of cocaine), methamphetamine, lysergic acid diethylamide (LSD), 6-monoacetylmorphine (6-MAM—heroin and diamorphine).
We have also put forward our approach for dealing with drivers who use drugs which have recognised and widespread medical uses but which can also affect a patient’s ability to drive and are sometimes misused. We know that the vast majority of people who use these drugs are doing so responsibly and safely and that is why our approach does not unduly penalise drivers who have taken properly prescribed medicines. The limits we propose to set follow the recommendations of the expert panel, which in the vast majority of cases will avoid the new offence catching out drivers who have taken properly prescribed or supplied drugs in accordance with the directions of a healthcare professional or the drug manufacturer. This will avoid inconveniencing the public and taking up police time.
Taken together these proposals will make our roads safer for everyone by making it easier for the police to tackle those who drive after taking illegal drugs and clarifying the position for those who take medication.
The consultation starts today and closes on 17 September 2013 and copies will be laid in the Libraries of both Houses.
(11 years, 4 months ago)
Written StatementsI can announce to the House today my decisions regarding safeguarding phase one of HS2—the route between London and Birmingham. Safeguarding directions protect the route of HS2 from conflicting development, and also give many of those who own property in the safeguarded area the right to serve a blight notice and request that the Government purchase their property under the terms of the compensation code.
Between October 2012 and January 2013 my Department consulted on issuing safeguarding directions for phase one of HS2. In total, 3,761 responses were submitted during the consultation period. Following careful consideration of those responses, I have today issued, under the Town and Country Planning (Development Management Procedure) (England) Order 2010, safeguarding directions to local planning authorities (LPAs) along most of the route of phase one of HS2.
LPAs to whom safeguarding directions apply are required to consult the named authority—in this case High Speed Two (HS2) Limited—on undetermined planning applications in respect of land that is within the safeguarded area. If a LPA is minded to grant planning permission otherwise than to give effect to HS2 Ltd’s comments then the planning application is referred to the Secretary of State for Transport who is able to direct a final decision on the planning application. The purpose of safeguarding is not to prevent development along the route of HS2, but to ensure that any development that does take place is consistent with our plans for the railway.
Safeguarding is also a trigger for statutory blight procedures under the Town and Country Planning Act 1990. Owner-occupiers of properties within the safeguarded area who want to move may now apply to sell their property to the Government by serving a blight notice. If they meet the relevant criteria they can expect to receive the unblighted open market value of their home, a home loss payment of 10% of the value of their home—up to £47,000—and reasonable moving costs. We do not expect that all properties within the safeguarded area will be required for the railway. Compulsory purchase powers to acquire properties needed for the railway will be set out in the hybrid Bill and can not be exercised until that Bill has Royal Assent.
Information on compensation specifically aimed at those who own property within areas safeguarded for HS2, including application forms, is available at, http://www.hs2.org.uk/ or by phoning the HS2 Ltd enquiries line on 020 7944 4908.
I have placed a summary of the responses to the safeguarding consultation in the Libraries of both Houses, and am publishing a command paper detailing the Government response to the consultation on safeguarding HS2. Both are available at http://www.hs2.org.uk/ safeguarding.
It should be noted that sections of the HS2 route in both Bromford and Ealing have not yet been safeguarded, pending a decision on whether there should be bored tunnels in these locations. These proposed design changes are the subject of a consultation launched in May 2013. I expect to announce my final decisions later this year.
Without HS2, key rail routes connecting London, the midlands and the north will soon be overwhelmed. HS2 will link eight of Britain’s 10 largest cities, serving one in five of the UK population. But the Government have always recognised the impact of HS2 on those living along the line of route. Issuing safeguarding directions brings certainty to many owner-occupiers living in the safeguarded area who can now apply to have their homes bought. I can assure the House that we will seek to process blight notices swiftly so that those who qualify can move as quickly as possible.
(11 years, 4 months ago)
Written StatementsI would like to inform the House that a contract to design, build, finance and maintain a fleet of 1,140 new carriages for use on the Thameslink rail line has been awarded to Siemens plc and Cross London Trains, a consortium comprising Siemens Project Ventures, Innisfree Ltd and 3i Infrastructure plc.
Siemens expects the award of the rolling stock project will create up to 2,000 jobs across the UK supply chain in component manufacturing, the construction of two new depots and subsequent maintenance.
The deal is part of an overall circa £6 billion infrastructure and rolling stock upgrade to radically increase capacity on one of Europe’s busiest stretches of railway improving connectivity and reliability across the capital and the south-east.
The deal is expected to see the first new train running on the network by the start of 2016. The introduction of the full fleet by the end of 2018 will enable a 24 trains per hour service operating through the capital at peak times. A new interchange at Farringdon will give Thameslink passengers access to Crossrail for east-west journeys across London.
The new generation of electric commuter carriages will release existing carriages for use elsewhere on the network, particularly as further routes are electrified, for example in the north-west of England and the Thames Valley commuter lines.
The jobs created by the rolling stock project are in addition to those created by the Thameslink infrastructure works which are currently under way. At the peak of construction activity it is expected that around 3,000 people will be directly employed on the Thameslink programme infrastructure works with as many again employed in related jobs in the wider community.
Confirming the completion of this important deal is good for transport, good for the economy, and good for growth.
(11 years, 4 months ago)
Commons ChamberQ1. What steps his Department is taking to improve coastal safety.
The Department works closely with many organisations to promote safety around our coast.
Last year we saw an increase in accidents around this time of year, and while I want to encourage everyone to enjoy our beautiful coast this summer, I want them to stay safe and to follow the advice of organisations such as the coastguard, the RNLI, the National Water Safety Forum and the Royal Yachting Association so that they enjoy their time around the coastline.
Over the summer months, millions of tourists will flock to tourist resorts such as Lytham St. Annes and the Fylde coast. Will my right hon. Friend assure the House that all will be done to keep our inshore waters as safe as possible to encourage more people to holiday here in the UK?
My hon. Friend is right that many constituents will flock to the coast, including the coastline in his constituency and many others around the UK. Our coastline is fantastic, attractive and beautiful, but it is also dangerous and people should not take risks or underestimate it.
Amphibious vessels such as the Duckmarine that recently sank in Liverpool appear to have at least three regulators: VOSA and the traffic commissioners; the Maritime and Coastguard Agency; and the Driving Standards Agency. Will the Secretary of State ask the accident investigators to consider whether this split regulation and split responsibility is the best way to guarantee public safety?
Of course we are all very concerned about the incident that happened in Liverpool and I will talk to the inspectorate about it. A report is being prepared by the marine accident investigation branch. I will want to see what it says, and I shall take the point made by the hon. Lady as Chair of the Select Committee.
It has been revealed that the maritime rescue co-ordination centre in Belfast has been staffed below risk level on 191 shifts this year alone. Does the Minister find that acceptable, and, if he does not, what is he doing about it?
It is vital that we have cover, and that if there is low availability pairing arrangements ensure that others take over that cover. We will not demur from our responsibility.
Q2. What his policy is on quality contracts for bus services.
6. What his policy is on the privatisation of east coast main line services; and if he will make a statement.
This Government’s programme for rail franchising was announced on 26 March. The comprehensive schedule included the intention to return the inter-city east coast franchise to the private sector by February 2015, and that remains our policy.
The east coast main line will have returned £800 million to the Exchequer by the end of this financial year. Are not the Government taking us from a position in which the line subsidises taxpayers to one in which taxpayers, through their fares, will subsidise shareholders?
I am guided by the words of the last Labour Transport Secretary, who said:
“I do not believe that it would be in the public interest for us to have a nationalised train operating company indefinitely…because of our recent experience of rail franchising”.—[Official Report, House of Lords, 1 July 2009; Vol. 712, c. 232.]
He said that when he held the job that I hold now, and I think he was right.
The east coast main line has benefited from major improvements over the last 20 years. Will my right hon. Friend assure me that the Government will not neglect the need for future investment in that important route, notwithstanding the huge amounts of money that are being sucked into the doomed HS2 project?
Huge investments are being made in the east coast and, indeed, a number of other railway lines. Our package of rail investments between 2014 and 2019 will lead to the largest-ever electrification on our railways. The Chancellor confirmed that and further investment in the railways yesterday.
I refer the House to my entry in the Register of Members’ Financial Interests.
I support the HS2 project, but because that network will not extend to the north-east of England, there will still be a need for investment in the east coast main line. One option, under the intercity express programme, is the building of a further 270 carriages at the Hitachi factory in Newton Aycliffe. Will the Secretary of State agree to that? It would constitute an investment in sustainable jobs, and an investment in the long and proud tradition of train building in the United Kingdom.
I welcome Hitachi’s investment at the Newton Aycliffe site, following a £4.9 billion contract that it has already won for refurbishment of IEP trains. The Department is currently considering other proposals. Huge investment is being made in all our railways, partly as a result of the huge increase in the number of people who use them.
Q12. During a debate in the House last Thursday, the Minister of State acknowledged that investment in infrastructure and rolling stock for East Coast would be financed by the taxpayer, but that there would also be some private investment. Perhaps—
What additional investment does the Secretary of State see privatisation bringing?
I simply say to the hon. Lady: look at what has happened since privatisation—and, indeed, all the current franchises in operation were let by the last Government.
At the previous Transport questions the Minister of State said on East Coast that
“the involvement of the private sector means that we can increase, over and above the taxpayers’ money, the money that can be invested”.—[Official Report, 25 April 2013; Vol. 561, c. 995.]
Yet he has now admitted to me in a letter that the investment
“comes from an increase in the value of Network Rail’s regulatory asset base”,
and he says
“it is through private sector operation that we can best realise the benefits of the planned investment.”
Why does the Secretary of State not now just admit to the House that his Minister was wrong?
No, what my right hon. Friend said was absolutely correct. We are seeing huge investment in the railways and, as I said just a few moments ago, all the franchises currently in operation were let, and endorsed, by the last Government.
The fact is that the Secretary of State’s policy does not bring in any additional investment and is costing taxpayers, with millions of pounds paid to train companies to extend contracts so we can focus on East Coast. He claimed West Coast is paying more money back to the taxpayer than East Coast: it is not. He said Lord Adonis backs his plans: he does not. He says they are vital to bring in investment: they are not. Is it not the case that, one by one, his arguments for this costly and unnecessary privatisation have fallen away?
It is wrong to draw direct comparisons between one company and another. East Coast uses older rolling stock, which is cheaper to rent than the Pendolinos used by West Coast, so I do not acknowledge what the hon. Lady says. What I do acknowledge is that there has been huge growth in the railway industry since privatisation. That has been brought about in the main by competition between the different rail-operating companies—something that the last Government endorsed throughout the entire 13 years when they had the power to change any of these things.
7. What progress he is making on approving schemes under the local pinch point fund.
From the local pinch point fund, I have announced 72 schemes across the country that will benefit from £190 million of Government funding. Together with third-party contributions, including from the private sector, over £300 million will be invested as a result of that fund.
I thank the Secretary of State for his answer, and for the welcome infrastructure investment, particularly in commuter routes. Despite the fact that in Bradford people are either travelling up a hill or are just about to do so, cycling is very popular. Every day tens of thousands of people travel from Bradford to Leeds and from Leeds to Bradford. Can the Secretary of State give me any information about the “highway to hell”, the proposed scheme for the cycling superhighway between Leeds and Bradford?
I am always keen to look at schemes that help cyclists, including by increasing their safety. A number of schemes are currently before the Department, and I hear what my hon. Friend says in support of that bid, but I have to say there are bids from a number of colleagues for these schemes.
I thank my right hon. Friend for the approval given for the improvements under the fund to the A421 in my constituency. May I ask what his hopes are for the future scope of that fund, so we may, perhaps, bid for further schemes on the A421, including at the western edge of my seat leading into your constituency, Mr Speaker?
Well, Mr Speaker, I do not think I want to prejudge any future schemes that may or may not be developed. What I would like to point out is that we announced the local pinch point fund last year, and it has been incredibly successful. We had more bids than we had money available for it. Although I am mindful of that, I will see what else can be done. However, as a result of the Chancellor’s announcements yesterday and the statement shortly to be made by the Chief Secretary, there will be huge investment in our roads, which is much needed.
T1. If he will make a statement on his departmental responsibilities.
Since I last addressed the House, I have been able to announce the full programme of local pinch point schemes, benefiting from £190 million of capital funding from the Government. Recognising the crucial role that such capital investment plays in unlocking growth, my right hon. Friend the Chancellor of the Exchequer yesterday announced a 5.5% real-terms increase in the Department’s capital budget.
The Government have also this morning published the complete road casualty statistics for 2012. I can tell the House that in 2012 the number of reported deaths on our roads fell by 8% to their lowest level since records began in 1926. This is welcome news. However, we cannot afford to be complacent. The number of cyclist fatalities increased by 10% within the year, underlining the importance of our continued work in making cycling safer.
Norwich is one of the country’s leading cycling cities, with one in five adults cycling at least once a week. The city has ambitions to double this figure in the next 10 years, and Norwich’s bid for city cycling ambition funding would go a long way to achieving that aim. May I urge the Secretary of State to back the bid and inform me when he intends to make an announcement?
I welcome Norwich’s ambitious plan to double the number of adults cycling over the next 10 years. An announcement on the successful cycling ambition grant bidders will be made as soon as possible, but as I said in my opening statement we cannot be complacent about cycling safety. I look to the increasing interest in the House in this subject and I will consider what else the Department can do.
Will the Secretary of State introduce new legislation to improve the regulation of level crossings before the end of this Parliament?
I will certainly consider what the hon. Lady says about level crossings. I have had conversations with Network Rail about what we should do about them. I will look at whether legislation is the right way to go or whether we already have the powers to get things put right.
T5. My constituents face some of the highest car insurance premiums in the country. I am aware that many Departments have to be involved in this, but will the Minister reassure me that dealing with this terrible issue remains a top priority?
T2. In the past few years, rail fares have been rising almost three time as fast as wages, and are among the most expensive anywhere in Europe. What will the cap be on regulated rail fares by franchised rail operators in the 2015-16 financial year?
With the help of my right hon. Friend the Chancellor, we have capped the overall increase in regulated fares to RPI plus 1. I am very aware of the pressure of rail fare increases that passengers face, and so are the Government.
T6. This week, a private developer announced plans to invest £400 million in private housing in Worcestershire; it is also going to help with the dualling of the southern link road. Will the Department commit to working with my county council to ensure that we use the opportunity to unlock further investment in Worcester Parkway station and a new bridge across the River Severn to the heart of cyber valley in Malvern?
T3. Last Friday, many hon. Members from across the north-east went to their local East Coast rail station to highlight the planned privatisation. At Newcastle Central station and elsewhere, the support for East Coast’s remaining in the public sector was overwhelming, and that has since been emphasised by many letters and e-mails. So why is the Secretary of State ignoring the views of those who use East Coast rail and pressing ahead with a costly, wasteful, unnecessary and ideological privatisation?
As I have said many times, if it is ideological, it must have been the ideology of the previous Government, because that is what the former Transport Secretary and the former Chancellor said should happen. It is not ideological; it is about getting the best service and making sure we get long-term planning on the east coast main line. I believe that we will get a better service because that planning for the future will take place.
T7. Forget high-speed rail; in south-west England and Cornwall, we welcome average-speed rail, reduced fares and wi-fi on long-distance services. What progress is being made?
I was down in the west country—the Cornwall and Devon area—just a few weeks ago. I fully recognise the importance of mobile services for the travelling passenger and I am keen to see improvements made. We are discussing with First Great Western how to deliver better services to the hon. Gentleman’s constituents.
T4. Following on from the question asked by my hon. Friend the Member for Glasgow North East (Mr Bain) about fares, in a recent poll by Passenger Focus only 42% of passengers were satisfied with the service they were receiving. Exactly what is the Minister going to do to improve that? Might it not be time for us to freeze fares until people are satisfied with the service?
The Opposition have to decide whether they want investment to continue at the levels that we are putting in to the railways. If they do, it has to be paid for. I believe the cost has to be shared between taxpayers and those who use the services. I make no apology for the amount of investment that this Government are putting in to Britain’s railways. It is desperately needed and the right thing to do, but it has to be paid for.
T9. I am pleased that in recent years the volume of freight being carried on our railways has increased, and it is important that that welcome trend continues. What plans do the Government have to encourage as much freight as possible to transfer from road to rail?
Does my right hon. Friend the Secretary of State accept that the transformation of the passenger experience at Stansted airport needs to be matched by a transformation in the time it takes to get to Stansted airport, specifically an improvement on the 51-minute journey, which I understand he undertook a week ago?
My right hon. Friend is right. As he knows, I was at Stansted last week and saw at first hand the subject of his representation and his call for greater investment in Stansted airport. I would like to discuss that with him and think about it with Network Rail.
T10. Stafford road and Stanhope way in my constituency are in a state of chaos owing to unco-ordinated bus services using narrow residential roads. What plans does the Minister have to look at the strategic co-ordination of bus services outside London?
Earlier this week statistics were released suggesting that in London, transport spending per head of population is 520 times more than in the north-east region—£2,700 in London, compared with a measly £5 in the north-east. What is the Secretary of State going to do to ensure a fairer distribution of transport finances to the north-east region?
It is right that there has been large capital investment in London. Building Crossrail was the right thing to do. It was long overdue and it is now being built. It is currently the largest construction project anywhere in Europe. But I also think we must get the balance of transport spend right, and that is partly why HS2 is an important means of spreading those benefits. I very much bear in mind the points that the hon. Gentleman makes. As I pointed out to one of his hon. Friends, we are spending £4.9 billion on the intercity express programme for new trains for the north-west and the south-west.
(11 years, 4 months ago)
Commons ChamberI beg to move, That the Bill be now read a Second time.
Today, my right hon. Friend the Chancellor of the Exchequer has set out far-reaching plans to provide the infrastructure that we need to compete in the global race. We need better roads, better airports, better ports, and better rail links too—an ambitious programme for all parts of our country, with HS2 an important part of that. A growing economy, a growing population and growing demand for transport, which have seen rail travel double in a decade, mean that we must act. HS2 will be the first new main rail line north of London for 120 years, linking at least eight of our 10 largest cities, and improving services for Scotland too. I am pleased that HS2 enjoys the broad backing of all the main parties in the House. I want to make three points.
The Secretary of State has just said that the proposed High Speed Rail (Preparation) Bill paves the way for links to Scotland, so will he explain why clause 1(2)(a) does not make any mention of Scotland or proposals to connect HS2 to Scotland?
I shall come on to explain, if I may make a bit of progress, the way in which we shall link up to Scotland, and why the Bill covers the area. The Bill provides that important opportunity, and I shall come to that in a short while.
As I was saying, I want to make three points: first, the reason why a new high-speed line is right; secondly, the purpose of the Bill; and thirdly, the work that we are doing to manage the costs of the scheme. Why is HS2 necessary? The answer is not only speed, although HS2 will take an hour off journeys between London and Manchester, and between Birmingham and Leeds, and it will bring two thirds of people in the north of England within two hours of London.
Is the Secretary of State aware that if there is to be a tangible economic benefit to my constituency and the wider Cheshire region, there must be a hub station stop at Crewe, otherwise it will take longer to travel by High Speed 2 up to Manchester and then travel down on a local line to that area?
I know that my hon. Friend is concerned, as I am, to make sure that there are sufficient connections right across the country. We have not yet reached the consultation stage on phase 2. Part of the reason why we published phase 2, although it would have been easier not to do that, was to show our commitment to serving the north, right up to Manchester, Leeds and the east midlands. So I am pretty sure that I will be hearing a lot more from my hon. Friend and others on the question of where the station should be located—Crewe or Staffordshire.
I met a group of Members from—well, I was going to say Staffordshire—I met two Members from Stoke-on-Trent and one from Staffordshire, and I give way to him.
I thank the Secretary of State for giving way and for his generous offer of coming to visit and see the lie of the land in north Staffordshire and east Cheshire. He will appreciate after our meeting that it is difficult for Members from north Staffordshire to support HS2 as it stands because it may very well, on the current modelling, reduce the number of direct trains from Stoke-on-Trent from 31 a day to just three a day. This knock-on issue is relevant to people from Stockport all the way down to Coventry, as he will see from the amendment. What assurances can he give that the west coast main line in the future, after HS2, will not become the ghost train line running a skeleton service, as the projections currently suggest?
I met the hon. Gentleman yesterday along with two of his colleagues, and I can assure him that this is about providing extra capacity, not reducing services. I want to consider the points that he and two of his hon. Friends made to me yesterday along the same lines. I do not recognise where he gets his figure of three services per day compared to the present level of service. Of course, that will be part of the consultation and one of the aspects that we will examine fully as we move forward.
The last time I looked, York, Manchester, Birmingham and London were in England. HS2 was clearly an England-only project, yet there will be Barnett consequentials. Unless the Secretary of State can state that there will be equivalent consequentials for Wales amounting to about £2 billion, we will vote against the Bill at every stage.
I am sorry the hon. Gentleman feels that way, because I believe there will be advantages to Wales as well. As HS2 serves an area up to the north Wales coast, there will be ways in which that can be an advantage. I think he is saying that he will vote against because he is not getting the opportunity to get high-speed services. If we do not get the route as currently proposed, he has no chance of getting any high-speed opportunity whatsoever. He will see, if he looks at the way the plans are laid out, that this can be developed further—even further up to Scotland, as the Bill makes clear.
The Minister talks of expansion further up to Scotland. When? Given the remarks about no Barnett consequentials, the “when” is not in a decade, but should be here and now.
I announced last October the work that was already being commissioned by HS2 to take the link up to Scotland, and I am more than happy to have discussions with Scottish Ministers and the Scottish Government about that.
I suspect that even the Scottish National party does not expect the line to reach the constituency of the hon. Member for Na h-Eileanan an Iar (Mr MacNeil) any time soon, but I hope it will reach my constituency.
I would like to believe that it will not be next century and that my constituents will be able to benefit from the line as well. Clearly, they will benefit from faster services in so far as they can use the line further south, but we need to see work being done now and commitments made now to ensure that the further additions from HS2 do not start happening only in 2033.
The hon. Gentleman makes a fair point. As I announced last October, I have asked HS2 to start doing the work on that, and I hope to be in a position to say more about it in due course. I cannot give him a specific date at this stage because there are some very big issues to address.
I was saying that HS2 will bring about two thirds of the people in the north of England within two hours of London. Its purpose is not merely to keep pace with our competitors, although it is worth pointing out that Italy will soon have 926 miles of high-speed rail, whereas we have just 67 miles.
Is not Lille in the north of France an excellent example of the benefits that high speed can bring to a city?
Indeed, and I will say a little more about Lille shortly. I think my hon. Friend may have a copy of my speech, although as I was working on it until not long ago, I would be surprised if he had.
Mr Speaker, I know that a great number of Members want to speak in the debate and I will give way a number of times, but I am mindful of the fact that you asked me to allow plenty of time for others to take part.
I apologise to the Secretary of State for coming in late and I appreciate the fact that he has given way to me. Can he tell me what Coventry will get out of high-speed rail and, more importantly, what about a decent compensation package?
I will come on to say something about compensation later in my speech. I think Coventry will get many benefits. The whole west midlands area will get a huge number of benefits from HS2. I want to see councils such as Coventry start working to make sure that they can get the best out of High Speed 2, both from the connections and the way we serve those areas. I know the hon. Gentleman is incredibly concerned about the way we serve Coventry. As somebody who knows Coventry relatively well, I am also concerned to see that take place.
The Secretary of State is very kind to give way. My point is that not only is the route of HS2 environmentally damaging, but the whole scheme is socially regressive. It is unaffordable to the bottom 50% of income bands and, in effect, it redirects money from the poorest to the richest. How can he justify this reverse Robin Hood strategy when that £33 billion could be better invested in giving us a better rail system for everybody, not just for the privileged few?
I find the hon. Lady’s position on the issue strange. I should have thought that the Green party would welcome such investment in public railway systems. [Interruption.] I think I had better answer the hon. Lady. HS2 brings a great increase in capacity and I want to say more about that a little later. That is one of the important issues that lies behind the need for HS2. Also, as I point out to colleagues, going from St Pancras station to Canterbury, the first part of the route from St Pancras to Ashford on a high-speed train is a fantastic fast journey, then one hits the Victorian railway network to Canterbury and the journey slows down completely. I want the rest of the country to get the benefit of high-speed rail, not just the area in the south which already has a high-speed service.
And I have no idea how the Minister would extend it to Northern Ireland, but Northern Ireland does not benefit from the Barnett consequentials of this spend, either. Because there is a construction interest, can he give an assurance that when it comes to procurement, there will be no repetition of the mistakes that were made in the past whereby UK-based companies did not benefit from some of the high-spend capital projects, and there will be opportunities for construction firms from Northern Ireland?
I am more than happy to do that and I shall say more about that later. Crossrail has set a good example. About 97% of Crossrail goods are serviced by British companies, and the Mayor of London is in the process of purchasing a huge infrastructure project, the new London buses, from Northern Ireland. That is very much in my mind with regard to the way I will be dealing with HS2 and talking to the management of HS2.
My right hon. Friend mentioned his rail journey to Canterbury. I encourage him to take a different branch on High Speed 1 and travel to Folkestone, as he will see that the investment in High Speed 1 is the biggest single advantage we have in promoting the east Kent regional growth area.
I am grateful to my hon. Friend, who makes that point from vast experience. It is worth remembering how controversial High Speed 1 was when it was built. I will talk about that a little later. The simple fact is that every infrastructure project—not nearly every project, but every project—is very controversial when it first starts, and in that regard High Speed 2 is no different.
Will the Secretary of State give way?
I will not be in the position that you are in, Mr Speaker, of having actually counted the number of interventions I have taken, but I will give way to my hon. Friend.
My right hon. Friend is absolutely right that all major infrastructure projects are controversial. Would he like to reflect on where he thinks the great city of Leeds would be today had we not built the M1?
Probably in the same place. [Laughter.]
Indeed, but it would be very difficult to get to, and it would not have benefited from the improvements we have seen there.
I think that the answer starts with a simple point: without HS2, the key rail and road routes connecting London to the midlands and the north will soon be overwhelmed. Even on moderate forecasts, the west coast main line, the nation’s key rail corridor, will be full by the mid-2020s, a point made earlier by my hon. Friend the Member for Shrewsbury and Atcham (Daniel Kawczynski), who wants more services from Shrewsbury to Blackpool. Having served as a Transport Minister in 1989, I know that the fundamental change that has taken place since then is that the pressure on a Transport Secretary now is often to find more services for the rail industry and more rail connections across the country—I was just talking about the west coast main line—and that is despite £9 billion of improvements north of Rugby in recent years. That means investing in the current infrastructure and trying to improve it. There are still problems south of Rugby, which is why Virgin has suffered problems in meeting some of the criteria it regards as important in providing the right kind of service.
Has the Secretary of State had an opportunity to look at the financial results released by Virgin Trains this morning? They indicate that profits are down by 40.5% but revenue is up by 2.8%, which is roughly the same rate as the fare increases, so the passenger increase must be very small. It says that it has now increased capacity by 40%, and this month it started a major advertising campaign to attract passengers. Does that sound like a railway line that is full to capacity?
No, it sounds like a railway that is providing the services that all colleagues want to see. As I pointed out a few moments ago, in certain areas hon. Friends are pressing for further services that cannot be provided because Network Rail says there is no availability on the existing highways.
My right hon. Friend can rest assured that, for a change, I will not be using this opportunity as a pitch to get more fast services to Nuneaton on the west coast main line. Can he assure me that, despite the investment being made in HS2, investment will still be made to continue to improve the services and capacity on the west coast main line?
Yes, indeed. That is one of the points that will become very apparent with the investment programmes we have over the coming years and that Network Rail will be carrying out. I can assure my hon. Friend that it is not a case of either/or; it is essential to invest in both areas.
I would like to add a thought on the capacity question. Will the Secretary of State confirm that over the past 15 years passenger numbers have increased by an average of 5% a year and that the business case for HS2 assumes an increase of 1.6% a year, which is quite a conservative estimate?
Indeed, and I am grateful to my hon. Friend. Basically, 15 years ago there were about 750 million passenger journeys, and the latest estimate is for 1.5 billion passenger journeys, which is a massive shift that I would have thought my right hon. Friend the Member for Chesham and Amersham (Mrs Gillan) would welcome.
Now, there is a choice. As a bit of a conservative, I will go with seniority, if my hon. Friend the Member for Wycombe (Steve Baker) will forgive me.
Will my right hon. Friend accept that, in relation to my constituency, this project goes from top to bottom and is deeply opposed by all and sundry? I have had meetings with thousands of constituents already. Will he accept that, according to the Public Accounts Committee, the pricing is unrealistic, the values for journey time savings are untenable and there has been insufficient analysis of non-rail alternatives? What answer does he give to the Public Accounts Committee and my constituents, who are deeply angered by this?
To my hon. Friend’s constituents I say this: I understand that a big piece of infrastructure of the size of HS2 will obviously have an impact. I respect and understand that and do not criticise those people who raise objections. I will move on to talk about compensation later. He talks about an area where we are yet to confirm the route. We will be having a full and proper consultation later this year, when he and his constituents will be able to make those points. I will want to see what can be done to help with some of the environmental points. I also point out that part of the west coast main line runs through his constituency, and it, too, was very unpopular when it was built, but it is very beneficial to the area, because I know that he often takes the train from Stafford to get to London. I will give way once more, to my hon. Friend the Member for Wycombe, but then I will have to make some progress.
In relation to passenger numbers, my right hon. Friend will know the old aphorism that if one subsidises anything, one gets more of it. Will he remind us how much subsidy the rail industry has received over the past few years?
One of the things we are trying to do is drive out some of the subsidy in the railways to make it cheaper and more affordable for companies, but it is certainly true that there is subsidy in the rail industry. However, we have to think about people being able to get to work and what that subsidy supports. Sometimes the commuter in London, and the commuter in my hon. Friend’s constituency, deserves that support to enable him to get to the jobs that are available elsewhere. One has to be realistic and understanding about that.
I will now try to make some progress, because I have been speaking for longer than I had intended to take for my whole speech. This is not about a choice between upgrading the existing railway and building a new one. Upgrades will not provide the extra capacity we need. The choice is between a new high-speed line and a new conventional railway. The significant additional benefits make high-speed rail the right answer. Of course, big infrastructure projects are always controversial. As I often say, the easiest thing in the world for the Government to do would be not to build HS2 or to commit to it, but the costs of that would be huge.
It would be a cost in jobs. Our modest estimates indicate that HS2 will create and support 100,000 jobs, while the group of core cities predict that it will underpin 400,000 jobs, 70% of them outside London. It would be a cost in prosperity. Some estimates suggest that HS2 will add over £4 billion to the economy even before it is open. The line is estimated to provide around £50 billion in economic benefits once it is up and running. If we do not go ahead with HS2, there will also be a cost in lost opportunities for the towns and cities in the midlands and the north. I am not prepared to put up with a situation in which someone can get to Brussels on a high-speed train line, but not to Birmingham; to Strasbourg, but not to Sheffield; or to Lille, but not to Leeds. We cannot afford to leave the economic future of our great cities such as Manchester, Birmingham, Leeds, Sheffield, Nottingham and Derby to an overcrowded 200-year-old railway.
I did say that I would not give way any more, but I shall give way to my hon. Friend.
My right hon. Friend knows, as does the rest of the House, that much of that high-speed European railway was built with European money. How much investigation has he done with the European authorities into how much he might be able to reduce the enormous £32 billion cost of the railway?
We will be looking at that. I will say a bit more about costs a little later, if my hon. Friend will wait. As always, we will look at how we finance, and not necessarily just in respect of the area to which he has referred. We could see private sector investment in some of the stations that we are going to develop. I will say something more about the stations in a few moments.
We will deliver the investment to develop new stations and growth at places such as Old Oak Common in west London, where we will invest more than £920 million in a new hub linking the west country, Crossrail and HS2. At Curzon Street in Birmingham, we will invest £335 million on station developments. Similar investments are due in Manchester, Leeds and other great railway centres such as Sheffield and the east midlands.
HS2 will also allow for significant improvements to the rail service on the existing main north-south lines, providing benefits for towns such as Milton Keynes, Tamworth and Lichfield. It will provide real scope to get more freight on to the railways, which I would have thought the hon. Member for Brighton, Pavilion (Caroline Lucas) would welcome. It will also free up capacity on the M1, the M6 and the M40.
My second point this afternoon is about the Bill before the House. It will authorise essential expenditure on the preparation work for high-speed rail. Planning and building the line will take time.
On the point about this legislation being the paving Bill and agreeing the expenditure before the line gets built, will the right hon. Gentleman assure the House that he will publish the receipts relating to everything spent as we advance to building the line, so that we can assure ourselves annually that the money spent represents value for money to the taxpayer?
I am about to make exactly that point; obviously, somebody else has an advance copy of my speech.
The line will be overseen and delivered by successive Parliaments, which is why it is right to provide Parliament with the opportunity to debate the project. The hybrid Bill will provide additional opportunities for closer scrutiny of HS2. This is the moment for Parliament to demonstrate that it is backing British business, jobs and growth by backing HS2.
Let me say how the Bill will help achieve those aims. Without this legislation, Treasury rules would limit the amount of work that could be done or undertaken until after Royal Assent on the hybrid Bill. That includes design work on the construction of the line, planning the movement of utilities and carrying out ecological surveys. The legislation will also ensure that future spending on the discretionary property compensation is compliant with the PAC requirements.
My right hon. Friend is being generous with his time. From the moment the train line was announced, the property market up and down the route has frozen solid. Unless my constituents can demonstrate an exceptional hardship, they cannot sell their homes and move. I implore the Secretary of State once again to reconsider a property bond as the single most helpful move he could make to help alleviate a lot of the suffering being caused right now, today, by the project.
I assure my hon. Friend that, if he has a little patience, I will say something about that exact point a little later.
The PAC requirement states that when there is significant new expenditure that is likely to persist, authority should normally be sought from Parliament. I appreciate that many hon. Members have concerns about the authorisation of expenditure on early works in advance of the subsequent hybrid Bill. That is why this Bill ensures complete transparency in what we are doing, when we are doing it and—crucially—how much we are spending.
The Bill creates a duty on the Secretary of State to produce an annual financial report on the amount of expenditure incurred, allowing Parliament to keep a check on the costs and progress. I hope that that answers the point made by the hon. Member for North East Derbyshire (Natascha Engel).
I will look at the detail of that. I am certainly determined that Parliament should be kept well informed and, of course, the company will be open to the scrutiny of the Public Accounts Committee and the National Audit Office reporting to the PAC. There is a way in which the House can keep an eye on the matter.
My third point is about funding. We can today welcome the allocation made by the Chancellor in infrastructure investment. Tomorrow, the Chief Secretary to the Treasury will say more about our plans. I know that in the context of the Bill, the House will want to be updated on the cost of HS2. I can therefore tell the House that tomorrow I will be writing to the chairman of HS2 Ltd to set a target price for delivering phase 1 of the project. That amount is £17 billion at 2011 prices. That takes account of the design and environmental changes to improve the scheme. Those changes include a tunnel from Old Oak Common to Northolt, design changes at Euston station, and a tunnel under the M6 near Birmingham.
As a responsible Government, we must be prudent, which means allowing the right level of contingency. In addition, therefore, we have set an overall indicative amount for the budget for phase 1 of £21.4 billion. For phase 2, it is £21.2 billion, so the total is £42.6 billion at 2011 prices. That includes £12.7 billion of contingency.
At Prime Minister’s questions this afternoon, I asked the Prime Minister why the Government were opposing the continuation of the trans-European network north of London. The Prime Minister clearly did not have an answer, and I will understand if the Secretary of State does not. However, will the Secretary of State find out why we are opposing the extension of that network? While we are in the European Union, that could be cutting off a source of funding.
I heard the hon. Gentleman’s question to the Prime Minister. Those debates on that whole process are ongoing and still at an early stage. I have some worries and I would want to get clarification before we changed the Government’s position.
Will my right hon. Friend explain what the £12.7 billion of contingency will do to the benefit-cost ratio? During the consultation period, it was always made clear that the £32 billion was the absolute maximum and contained a vast sum for contingency.
At the moment, the value-cost ratio is reckoned to be 2.5. I also point out that the BCR tells us some things, but not everything. For instance, the BCR on the Jubilee line was a lot lower than that for High Speed 2. If the Jubilee line had not been developed, a lot of the development in Canary Wharf would never have taken place. The line brought a huge amount of investment into the area and the country. It is important that we are seen to be able to compete with other countries in the global race to attract businesses to this country. The point also relates to the Olympic games, where a contingency was allowed and in fact the price of the games came in below the budget that had been set by the Government. I expect the final costs to be lower than those I have outlined. However, I take on board my hon. Friend’s point about BCR.
My right hon. Friend has announced that the total budget for the infrastructure plan will be about £43 billion. Does that include the £8 billion for the rolling stock?
If my hon. Friend will allow me to make a bit more progress, he will find that I am going to be very open with the House and put all this out into the public domain. I want to be as open as I possibly can.
I give way to my hon. Friend, who I met yesterday—I think, but the days are getting a bit blurred at the moment.
They are getting blurred for us all. I am grateful to my right hon. Friend for giving way and for yesterday meeting my constituents from Hints, Weeford and Drayton Bassett to discuss their concerns about compensation and mitigation. He has rightly referred to the great concern that people have about the compensation and mitigation that is available. In setting a budget for phase 1, will he prevail on HS2 to be as efficient as possible so that money can be saved and spent on mitigations in Staffordshire?
The meeting that I had yesterday with my hon. Friend and his constituents was very useful, and I gave them an undertaking to look at some of the points they made. I have had varying reports on how some of the public consultations have gone. I am determined that we improve the way in which they are conducted so that people get more reliable answers on the points they are making, and as quickly as possible, although sometimes these things take a lot of time if particular requests are made as to routes and the like. I thank my hon. Friend for behaving very constructively in the points that he is making.
I am grateful to my right hon. Friend for giving way, and pleased to be able to follow the intervention by my hon. Friend the Member for Tamworth (Christopher Pincher). Next week I will be bringing people from Lichfield, Whittington and Armitage to see him to discuss, primarily, mitigation. May I ask him about compensation? He will know that with the current route I will have real difficulties with the hybrid Bill; in fact, I will not be able to support it. The Country Land and Business Association says that this stage of the game is the only opportunity to get compensation into legislation so that we can give it to people in my constituency, and indeed in Tamworth, who have been blighted for the past three years.
As someone who was born and brought up in Staffordshire, I know the area that my hon. Friends are talking about incredibly well. Without the authority of this Bill, we would be in a very difficult position as regards exceptional hardship. I mentioned earlier some of the requirements of the PAC in relation to accountability in spending money on a project without the approval of Parliament, and that also relates to compensation.
The Secretary of State has been dealing with blight, and he mentions Staffordshire, but he also knows Derbyshire well, and he knows a village called Pinxton. I spoke about blight when he made his original statement, and I was staggered to be told within hours by a farmer in Pinxton who was selling his farm that as soon as the statement had been made he was told that he would never sell his farm. How is that farmer going to be compensated?
I will say a little more about compensation in a moment. I accept and appreciate the hon. Gentleman’s point about the impact of naming the route. At the time of HS1 several routes were announced and there was potentially more widespread blight. In HS2 we have tried to be more specific about the routes so that we avoid widespread blight. However, I also say to the hon. Gentleman, who is well versed in how these things work, that we will be going out to consultation on phase 2—I will be announcing that in the very near future—and that will enable his constituents and those of the hon. Member for North East Derbyshire to make their points, find out more information, and possibly propose alternative suggestions and ideas.
The Secretary of State said that there is a contingency provision of nearly 40% in this project. Is that typical of a project of this size, or does it indicate a higher degree of risk than would usually be associated with such a project?
It is a normal level of contingency that would be put into a scheme of this sort, and it is built in on an internationally based calculation.
This is the right way to plan for the project. In addition, with or without HS2, new rolling stock will be needed on the key inter-city routes linking London and the north over the next 20 years. I hope that deals with the point raised by my hon. Friend the Member for North West Leicestershire (Andrew Bridgen). We are therefore budgeting £7.5 billion for HS2 rolling stock. To put that in perspective, the current inter-city express programme to replace trains on the east coast and Great Western lines, which is creating jobs in the north east, will cost £4.9 billion. The money that I have just announced for the rolling stock for HS2 also includes a contingency of some £1.5 billion.
Good infrastructure is an investment in economic growth. We are investing £14.5 billion to build Crossrail, while £11 billion has been invested in new infrastructure at Heathrow since 2003. Over the period of construction, the cost of HS2 will be less than 0.15% of GDP—I repeat, less than 0.15% of GDP. This is an investment that the country can sustain and needs. That is why tomorrow the Chief Secretary will set out the detailed HS2 funding allocations for the six-year period until 2020-21.
Before I finish, I want to explain what we are doing for those affected by the line. As I said earlier and have tried to make clear throughout this Second Reading speech, I do not dismiss those with objections as irrelevant. We do indeed need to design HS2 carefully, consult properly and compensate fairly. I hope that I can reassure people about why it is right to go ahead. Some have concerns about the impact of HS2 on the landscape. While I cannot deny that a project of this scale will have an effect, I believe that the positive experience of our first high-speed line in Kent shows that the consequences can be managed without wrecking the countryside. For instance, while not a single mile of the M1 is in-tunnel, about 40 miles of HS2 will be in-tunnel. Of the 12.4 miles that crosses the Chilterns area of outstanding natural beauty, 5.8 miles will be in-tunnel and 3.5 miles will be in deep cuttings. No part of phase 2 of the route crosses any national parks or areas of outstanding natural beauty.
It is also important to ensure that proper compensation is made to those affected by HS2. That is why we have introduced the exceptional hardship scheme although there was no statutory requirement to do so. We believe that home owners already affected with a pressing need to move should have recourse to compensation, but without the authority of Parliament to incur expenditure to continue with this compensation, I would need to consider carefully what other mechanisms, if any, we could use. Very soon, we will start a new consultation on compensation.
I have met some of my constituents in Greasbro road in Tinsley in Sheffield, whose homes will be demolished by the scheme. They accept that to a degree, but they ask me whether it is reasonable that people who, for the greater good of the country, are moving out of a home that they do not want to leave will simply get 100% of the market value, plus home loss. Is there no room for the Secretary of State to be more generous and say to people, “You are doing something for the good of the country. Therefore, you should receive more than 100% of the market value”?
The hon. Gentleman makes a very good point. We have said that we will go out to consultation. I fully accept that the position of his constituents is slightly different because the consultation, in the first instance, will relate to phase 1. It is not possible to consult on phase 2 until we have confirmed the route, but there will have to be a consultation on that. Given that he is the Chairman of the Communities and Local Government Committee, which has an important role in this area, no doubt his Committee will want to consider the matter.
We will consider a range of compensation options, including a property bond, about which a number of Members have made representations.
In building HS2, we need to ensure that we make the best use of British skills and workers. For Crossrail, 97% of the contracts have been won by British-based companies. From 2017, HS2 will create 19,000 engineering and construction jobs.
Supporting British jobs is essential. The Secretary of State will know that the finest rail in the world is produced in my constituency at the Scunthorpe steelworks. Will he assure me that he and his Department will do everything they can to ensure that Scunthorpe gets a cut of HS2 and that we see those benefits and jobs in our region?
I can assure my hon. Friend that I want HS2 to be not dissimilar in this respect to Crossrail, which saw 97% of the business going to British companies. However, I am cautious about awarding contracts and making promises from the Dispatch Box. I am certainly a little more cautious than my hon. Friend was in asking me to do so.
Will the Secretary of State meet a delegation from Coventry, as he suggested he would just before Christmas when we met him to discuss this issue?
I hope the hon. Gentleman does not mind my pointing out that I met a delegation before Christmas. I have met one delegation and I am happy to have another meeting with the hon. Gentleman on the same issue. I recognise that the council has changed its position and I look forward to his changing his position as well.
Today marks an important milestone in the progress of HS2. We must keep it to time and budget, and minimise the impact on residents, the environment and the landscape. We can do that and we need to do that because HS2 is an engine for growth: growth in jobs, growth in opportunities for business and growth in the global race. HS2 is a project for our generation. Now is the time to make it happen. I commend the Bill to the House.
My goodness, I find myself in total agreement with the hon. Gentleman.
Despite the importance of this project, there has been a real lack of drive from Ministers—I am not necessarily talking about the Secretary of State—in taking the decisions and delivering the action needed to make it a reality. The former Labour Transport Secretary Lord Adonis set up HS2 Ltd as long ago as 2009. By August of the same year, he had already confirmed plans for a new north-south rail line because he was a high-speed Secretary of State. Nothing has moved anywhere near as fast at the Department for Transport since he left, except the revolving door that has meant I am facing my third Transport Secretary since the election. I hope very much that the Government reshuffle that is rumoured to be on the cards does not deliver yet another change. I am sure that the right hon. Gentleman will agree with me on that.
I hear what the hon. Lady says, but she should look at the average length of service of Labour Secretaries of State for Transport—they were also fairly rapid through those doors.
It is starting to worry me, when I contemplate my political future, that the average length across the parties of Secretaries of State for Transport appears to be somewhat on the short side. I hope that the right hon. Gentleman, while his Government are still in office, and I can increase the average length of time served.
I am pleased to support this legislation today, which is a significant step in securing High Speed 2. It is important to recognise that HS2 is about having a vision for the future. It is about making a much-needed step change in capacity on our railways. It is about meeting growing demand for rail, addressing congestion on our roads and motorways, and connecting major cities not just across this country and the UK, but potentially across Europe as well. It has the potential to rebalance our economy.
However, it is very important that progress on High Speed 2 does not go ahead in isolation from considering the importance of continuing to invest in the existing classic line. Existing improvements such as the northern hub and the electrification programmes must continue and be stepped up. Assurance must be given that there will be proper access to high-speed rail, and that means that more attention needs to be given to the siting of the stations and connections to them. It is important that no local services be reduced as a consequence of building the high-speed rail line, and it is extremely important that the potential of developing the freed existing lines for both freight and passengers be addressed. That means that more work needs to take place, perhaps through local authorities and local enterprise partnerships working together, to make sure that proper plans are worked out so that the existing lines freed when high-speed rail comes to fruition will be able to be used to the maximum for freight and for passengers.
It is also crucial that the potential for economic development and rebalancing the economy is achieved. That means that we must not make any assumptions that simply building a high-speed line will automatically bring those economic benefits. Work has to be done, again by the LEPs, with the local authorities and with Government support, to develop economic strategies, regionally as well as nationally, to support business in taking advantage of those opportunities. I was very interested to read the results of studies instigated by local authorities. The Core Cities study put forward by major cities in our country identified about 400,000 new jobs that would come as a result of high-speed rail, and Centro’s report, looking specifically at the west midlands area, identified about 22,000 jobs that would come. I emphasise that none of those jobs will come automatically; we need to give attention to economic strategies and support for business to make sure that those opportunities come to fruition.
A number of important issues must be addressed. Concern remains that under the Bill as proposed, high-speed rail may not go beyond Birmingham. We have heard assurances from Ministers but we need rather more than that; we need a commitment in the Bill to make sure that HS2 is not simply between London and Birmingham, and that the rail scheme progresses to Leeds, Manchester and beyond. The time scale is a very long one, even on the current proposals of 2026 to Birmingham and 2033 to Leeds, to Manchester and to other areas.
I completely agree with the hon. Lady’s point. I wonder, Mr Speaker whether I might use this intervention to clarify something I said earlier, as I am afraid I gave the wrong figure. I said that the contingency was £12.7 billion but it is actually £14.4 billion, so it is larger than I said. I just wanted to take this opportunity, with your permission and that of the hon. Lady, to put the figure right.
(11 years, 6 months ago)
Written StatementsThe Government have today published two documents for consultation which significantly move forward our work on the HS2 route between London and the west midlands (known as phase 1 of HS2). These are the draft environmental statement and the design refinements consultations.
Publication of the draft environmental statement (ES) is a key step towards delivering the hybrid Bill for the HS2 route between London and the west midlands. The formal ES will be published alongside the hybrid Bill later this year, having been further refined in light of responses to the draft ES consultation.
The draft ES provides, wherever available, information on the likely significant environmental effects of HS2—and our plans wherever possible to mitigate them.
The Government believe that HS2 is vital for this country and will provide a huge economic return. However, I am aware that the building of the railway will cause disruption for those living close to the line of route. I am determined that this disruption should be kept to a minimum and mitigated wherever possible.
Consulting on the draft ES is not a statutory requirement but the Government recognise the importance of ensuring widespread engagement on the scheme. Best design can only be reached with the input of local communities, environmental groups and all levels of Government.
Once the hybrid Bill is deposited, there will be a further period of consultation on the formal environmental statement as part of the parliamentary process.
Alongside the draft ES, I have published a consultation on a series of design refinements for the HS2 route between London and the west midlands. Since we set out our proposed route in January 2012 we have been developing the detailed design of the scheme, listening to the representations from individuals and organisations affected by the route. This refinement process aims to ensure that we design a railway that is as efficient and effective as possible while limiting as far as practicable its impacts on people and the environment.
Many of these proposed refinements are small in scale but some are more significant, altering the local impact of the scheme. To ensure my final decisions on these refinements are informed by the best possible information I have decided to consult on my initial preferences for the more significant changes before deciding whether to include them in the final design of the scheme.
Consultation on both the draft environmental statement and the design refinements closes on 11 July. Consulting on these two documents is part of the process of helping to make HS2 the best it can be, providing passengers with the high level of service they expect while minimising as far as practicable the impact on local communities.
(11 years, 7 months ago)
Commons Chamber1. What progress his Department is making on its rail fares and ticketing review; and if he will make a statement.
We are considering a range of options to improve rail fares and ticketing, and we intend to set out our findings and next steps this summer.
Commuters in Islwyn will pay three times as much as their counterparts in Scotland, whose Government are freezing off-peak rail fares next year. Do this Government plan to do the same here?
We are looking at a wide range of options for ticketing and, as I said, we hope to report to the House on that in the summer. What we have in place for ticket pricing is exactly the same as under the previous Government.
The McNulty report identified significant costs incurred on our railways compared with those of our European counterparts. Will my right hon. Friend outline what those extra costs are?
I am keen that the industry learns a lot of lessons from the McNulty report. That important report was set up by the previous Government, although it reported to us, and it has set out ways in which we need to improve the operations of the railways. However, I would point out that there are a number of tickets in this country that are cheaper than those in Europe.
Given that the National Audit Office has warned that higher rail fares could lead to greater profits for the train companies, why has the Secretary of State caved in to those companies by giving them permission to increase their fares by up to 5% above his so-called cap?
We have had this argument before. As I have pointed out to the hon. Gentleman and other Labour Members, we are following exactly the same policy as the previous Government—[Interruption.] The hon. Member for Garston and Halewood (Maria Eagle) is shouting from a sedentary position, but they changed it for one specific year. I would point out that the previous Labour Government planned that 70% of costs would be met by fare payers by 2013-14.
If I try to book a train ticket from Glasgow to Sheffield, the cheapest standard single is £108. However, booking three tickets—Glasgow to Preston, Preston to Manchester, and Manchester to Sheffield—is half that cost. There is a whole host of similar examples throughout the network, so will the fares and ticketing review put a stop to such nonsense?
I want the ticketing review to address several issues. The Minister of State, Department for Transport, my right hon. Friend the Member for Chelmsford (Mr Burns), and I will look at that situation, but I also want passengers to have more clarity about how they can take advantage of some of the cheaper fares that exist.
Will the Secretary of State look at the cost of rail travel per mile? He will know that, compared with other lines, his and my line—the midland main line, which goes through Kettering—is very expensive for rail travel per mile.
My hon. Friend is right to say that I know that line particularly well, and I often ask questions about it to find out what is happening over the whole rail network. However, I should point out to him that cheap deals on that particular line can be found.
2. What steps he is taking to increase the affordability of bus travel for young people accessing education or training.
7. What steps he is taking to reduce sign clutter on roads.
The Government are committed to reducing sign clutter. I recently wrote to English local authorities to encourage them to take action, and I have sponsored an award to encourage the reduction of sign clutter. The Department will be revising traffic sign regulations and general directions to provide local authorities with far more discretion about where and when they place traffic signs.
I thank my right hon. Friend for that answer. On a recent visit to Vietnam, I noted that the communist Government there put up propaganda signs all over the place. Similarly, Derby city council puts up signs showing anti-Government propaganda. Does my right hon. Friend agree that that is a terrible waste of taxpayers’ money?
I, too, regularly see those signs, and one must wonder why we are seeing such signs around Derby city at a time when the council is saying that it does not have enough money for other essential services, and when it has just increased council tax. That is unlike Derbyshire county council, which also serves my hon. Friend’s constituency but has had a 0% rise in council tax. That is an important message for the people of Derbyshire about where money is being spent.
8. What plans he has for incentives to encourage the take-up of electric vehicles.
10. What recent discussions he has had on increasing the motorway speed limit to 80 miles per hour; and if he will make a statement.
Work is continuing to assess the potential economic, safety and environmental impacts of trialling 80 mph speed limits across a number of sites on the motorway network. It is important that decisions are made on the basis of sound evidence, and as part of that I have had discussions with a number of bodies.
The Highways Agency proposes to expand its managed motorways programme so that the hard shoulder between junctions 32 and 35A of the M1 will be used as a permanent traffic lane, with the scheme running 24 hours rather than at peak congestion times, as other schemes do. Does the Minister share my concern, and that of local authorities, South Yorkshire safer roads campaign, and South Yorkshire police, that that proposal, especially at 80 miles per hour, will create a real safety issue?
I am obviously willing to hear any representations about the managed motorway scheme that we are progressing. We have found that where we have managed motorways, we have a better flow of traffic and safer statistics overall for the use of that particular road. These are important matters and I am more than happy to discuss the issue with the hon. Lady. I assure her that we are trying to increase capacity for her constituents and other people who use that very important motorway.
But does the Secretary of State agree that retaining a 70 mph limit on our motorways and not strictly enforcing it risks bringing the law into disrepute, and that it would be far better to have an 80 mph limit that is enforced?
My hon. Friend makes one of the many arguments for an increase. The 70 mph limit was set in 1965, and it is fair to say that, since then, there has been a great improvement overall in road safety, but I want to look at all those issues.
The human cost in lives, the economic cost of infrastructure changes and the environmental impact of carbon emissions are surely all good enough reasons to rule out once and for all any increase in the speed limit.
As I said in the replies I have just given, I am not ruling that out—I am looking at it. The hon. Gentleman makes important arguments that go the other way. It is not a straightforward issue.
11. What funding his Department is providing for new train stations; and if he will make a statement.
In March, I made an announcement of three stations that are likely to secure funding from the £20 million new station fund—Ilkeston, Lea Bridge, and Pye Corner. I expect to make another announcement in May. The Government also provide funding to local authorities through the major local transport scheme budgets and the local sustainable transport fund. Those funds can also be used to provide new railway stations.
Rowley Regis station in my constituency provides a vital link for commuters into Birmingham and the surrounding area, but the car parking facilities at the station have reached capacity. Will the Secretary of State meet me and Centro representatives to push forward on the vital project to expand car parking facilities so that commuters do not have to park on residential streets?
Recent research by the Association of Train Operating Companies shows that the number of rail journeys in and around Birmingham has increased by more than 20% in the past five years. It is one of 14 cities to record double-digit growth. In a way, I am not surprised to hear of the problems that that is causing for my hon. Friend’s constituents, and I am more than happy to meet him and Centro to discuss the matter.
High-quality transport gateways to our towns and cities are vital in supporting regeneration and growth. Plymouth is a case in point—Network Rail’s buildings there are appalling. Given that Network Rail says that it is more reactive than proactive, what discussions is the Secretary of State having with his colleagues in the Department for Business, Innovation and Skills and the Department for Communities and Local Government to encourage development, and to encourage Network Rail to take commercial advantage of some of its sites?
That is obviously an ongoing, regular discussion I have with Network Rail. I will visit Plymouth in the next few weeks. That is one of the things I will look at and, subsequently, discuss with Network Rail.
T1. If he will make a statement on his departmental responsibilities.
Since I last addressed the House at Transport questions, I have appointed members of the franchising advisory panel. I announced in my last statement that Richard Brown will be the chairman. The other members will be Nicola Shaw, chief executive officer of High Speed 1 Ltd; Stephen Paine, managing director of UK investment banking at UBS; Martin Buck, the commercial director of Crossrail; and Michael Holden, chief executive officer of Directly Operated Railways and chairman of East Coast—[Interruption.] For the benefit of the shadow Leader of the House, Nicola Shaw is on the panel. That panel of experts will meet on a monthly basis and help provide reassurance that the franchising programme is on track, and that the correct governance will be followed.
I thank the Secretary of State for the money he has put in for the pinchpoint between the A46 and the M5. In other A46 news, a local village has discovered that fibre optic cable runs along it, and has connected some of the local homes to it. Will the Secretary of State consider asking the Highways Agency to publish information on all roads on the network that have fibre optic cable along them?
My hon. Friend makes a very good point. It is important that we make proper use of all the infrastructure available, particularly in respect of bodies such as the Highways Agency. My understanding is that the agency makes details of the current fibre optic communication network available to any interested party, but following my hon. Friend’s points, I will speak to the agency and see whether we can do more.
T2. What help are the Government giving to smaller local authorities away from metropolitan areas, to introduce smart ticketing to make bus journeys more convenient and cheaper, and to get more people on to buses?
T3. Will the Secretary of State update the House on any discussions he may have had with the Mayor of London with regard to suburban railway services in the south-east?
I met the Mayor of London yesterday and had a wide-ranging discussion on many subjects relating to London and other areas. What I have always said is that in principle I have nothing against wider franchising, but I need to see that there is proper accountability. Discussions are ongoing.
As we approach the spending review, will the Secretary of State give careful consideration to the need to secure funding for the extension of the Metrolink in Greater Manchester through Trafford Park in my constituency?
I will take that as one of many bids we will receive. I am very keen to invest in infrastructure for the long term, and various local authorities are putting forward a number of schemes. They will all be assessed and judged, and decisions will be made in the light of the resources available.
T4. The Minister and the Secretary of State will know that the world’s largest financial centre is connected by the great eastern main line to some of the leading centres of research and development in the country, yet commuters and travellers can expect to use rolling stock that was unsuitable for travellers on the west coast main line 10 years ago. The Government have invested heavily in infrastructure. When will they be able to invest in rolling stock, too?
May I press the Secretary of State to provide me some evidence? I started off as a supporter of HS2. I attended a seminar in this House this week that predicted that it would cost £50 billion. What is the evidence that this will be a good investment for the towns and cities of the midlands and the north?
I am sorry that the hon. Gentleman seems to be questioning this. People do inflate figures. I believe that the figures, with which I have been very open with the House, remain as the figures. I believe the changes that HS2 will bring—the first new railway line built north of London in 120 years—will provide an important impetus for economic growth for the United Kingdom.
T5. The A64 is an extremely dangerous and highly congested road serving businesses along the route right through Thirsk and Malton between York, Filey and Scarborough. Will it qualify for a pinchpoint scheme, and what other criteria will it need to meet?
The east coast main line has returned £640 million to the public purse since 2009. Sadly, private ownership has failed the travelling public of the east coast franchise. What possible public benefit can be gained by another wasteful and expensive round of refranchising, when east coast is already where the vast majority of the public want it, in public ownership?
I point the hon. Gentleman to what was said by the last Labour Transport Secretary, the right hon. Member for Tooting (Sadiq Khan) who now sits on the Opposition Front Bench. It is worth pointing out that National Express paid £185 million in 2007-08, £145 million in 2008-09 and £8 million in 2009-10, which is when the franchise ended. The way that the track excess charges were calculated was then changed, so direct comparisons are not valid.
In answer to an earlier question from my hon. Friend the Member for Rotherham (Sarah Champion), the Secretary of State said that he made decisions based on evidence. Why is that not being applied in relation to the east coast franchising, given that we have had two failures of the private sector and now experience of a good service?
The evidence was supported by the fact that we have seen huge growth in the railways since privatisation 20 years ago. Since then, there have been 13 years of Labour Government, and they did not reverse it—in fact, they enhanced and pushed forward the franchising. The last Labour Secretary of State said that franchising was a good thing. I believe he was right and that passengers benefit from it.
T8. Will my right hon. Friend update the House on the dreadful congestion on the A38, particularly around the Markeaton and Little Eaton roundabouts in my constituency? It is causing misery to my constituents and Derbyshire residents.
I think that my hon. Friend lives close to the Little Eaton island and I live close to the Markeaton island, so we both know of the regular delays on that very important road. On the pinchpoint funds, I am pleased that we will see some improvements this month—as she will know, work has already started on preparing the site for those improvements. I have met the leader of Derby city council, and I know that my hon. Friend has met the Roads Minister, my hon. Friend the Member for Wimbledon (Stephen Hammond). We are looking at this issue, but it is a very big scheme.
Two weeks ago, Lord Adonis published a report on the north-east local enterprise partnerships suggesting that political consideration should be given to the extension of the Tyne and Wear metro into south-east Northumberland. Will the Secretary of State agree to meet me and interested parties to discuss that possibility and other possibilities for railway links from south-east Northumberland into the cities of the north-east?
I am pleased that the hon. Gentleman is calling Lord Adonis in support; other people were attacking what he did when he was Secretary of State. I am aware of the report and was in the north-east a few months ago. I am happy to meet the hon. Gentleman to discuss some of the important points within that report.
(11 years, 7 months ago)
Written StatementsI am today publishing supplementary information regarding the consultation on an exceptional hardship scheme for phase two of high speed two. I am also extending the exceptional hardship scheme consultation period until 20 May 2013.
On 28 January I announced the Government’s initial preferred route, station and depot options for phase two of HS2. Alongside this I set out for consultation an exceptional hardship scheme (EHS). The EHS is intended to enable owner-occupiers whose property has reduced in value as a result of the route announcement—and who can demonstrate a need to sell their property—to sell it to the Government at its full un-blighted market value.
We always welcome feedback on our proposals for HS2 and in response to some such feedback we have decided to publish further information to supplement the consultation document that we published in January.
The additional information we are publishing consists of:
A summary of the more significant feedback that we have received on the operation of the EHS that is already in place for phase one of HS2, and our responses to those points;
Data about the operation of the EHS for phase one; and
A study of property blight around the phase one route in the six months immediately following the announcement of the proposed route.
We are also taking the opportunity to clarify some of the terminology used in the consultation document; and about how the scheme’s criteria are applied.
We have published this information on HS2 Ltd’s website and will be making printed copies of this information widely available in libraries, Citizens Advice Bureaux and at local authority customer service departments along the line of route for phase two. We will also advertise it in newspapers. HS2 Ltd will be writing to those who have already responded to this consultation to make them aware of this additional information and the extension of the deadline for responding to the consultation. I have placed a copy in the House Libraries.
The Government are committed to delivering a compensation scheme that is fair and appropriate both to those directly affected by HS2 and to taxpayers. We have been clear all along that we want to get compensation to the people who need it as quickly as possible and this remains our intention.
Subject to the outcome of this consultation, it is still our intention to have an exceptional hardship scheme in place for phase two in the summer of this year.