Rail Franchising

Lord McLoughlin Excerpts

Tuesday 26th March 2013 Commons Chamber

[The Secretary of State for Transport (Mr Patrick McLoughlin)]

With permission, Mr Speaker, I wish to make a statement about the future of our railways. It is a positive future. It is almost 50 years ago to the day since Dr Beeching published his report. No one would have imagined then, or even 20 years ago, when the Government privatised the railways, which were still in decline, that the industry would now be booming. Traffic has doubled since privatisation, from 750 million journeys a year to 1.5 billion now. There are more services and record levels of investment, and our railways have the best recent safety record in Europe. That has not been achieved despite privatisation; it has been achieved because of privatisation.

Today I am setting out a programme that can achieve even more, because our country has to compete for jobs and growth. We need a transport system that is second to none, so we are spending unprecedented sums on infrastructure, such as Crossrail, the biggest construction project in Europe, and the northern hub cross-Manchester link, which will transform services across the Pennines. In return, it is right that we demand more from the industry, because for the money that passengers and taxpayers are putting in, we should expect ambition, innovation and even better performance for passengers. This is the way we are going to get it.

Last year, serious and unacceptable mistakes were made when it came to refranchising the west coast main line, but I have put in place a new structure and process in the Department, as the Laidlaw report recommended. In January, I announced our initial proposals for the three franchises most immediately affected: Great Western, Essex Thameside and Thameslink. Today I can confirm that I am accepting the next stage of the findings of the Brown review of rail franchising. I am also pleased that Richard Brown has agreed to chair a new franchise advisory board. I am publishing its terms of reference today. The Brown review called for a full refranchising programme to be announced by the end of April. I am pleased to be announcing it today.

I want to be as open as possible with the market, which is why I am publishing a prior information notice to set out not just the programme for franchising, but the way in which franchises will be let and the benefits they will bring. In doing so, I have applied three principles: first, that the passenger gains; secondly, that the rail industry thrives, with growing companies and new competitors coming into the market; and thirdly, that the taxpayer gains, through a more efficient use of public money and less waste in the industry. Those three principles are essential points on which the future of our railways rests.

Let me turn in detail to what I am announcing today —a programme that will give great improvements to the passenger, certainty to industry and a fair deal to the taxpayer. It will provide stability, so that we can invest more, and flexibility, so that different routes with different demands can be managed in different ways. The programme will also give fair weight to passenger satisfaction, which has not always been respected as it should have been, with long-term franchises that can run for up to 15 years if operators meet the standards they promise at the start. To ensure a competitive market, we will hold no more than three to four competitions a year, starting with a smaller number as the programme gets up to full speed and extending up to 12 current franchises to give certainty to passengers and allow the full programme to get under way.

There are those who would like our railways to go back to the days of state ownership, decline and under-investment. They are wrong. I share the view of the last Labour Government, who said that franchising worked. In 2009, Ministers brought in Directly Operated Railways on the east coast as a short-term stand-in. They did what was needed in difficult circumstances, but the east coast main line, upgraded in the 1980s, now needs revitalising. New trains, to be built in the north-east, are now on order. Now is the right time to invite bidders to put forward proposals for investing and improving those services. This will be the first of the new inter-city franchises to be awarded in 2014 in a programme that meets my three essential principles of better service, better competition and better value.

I wish to make one final point. The Beeching report was about closures and cutbacks, but its 50th anniversary tomorrow sees an industry marked by growth, not decline—investing in High Speed 2 for the future, as well as providing better services today. That is why I am pleased to announce the front runners in our fund to open new stations. They are Lea Bridge in Walthamstow, Pye Corner in Newport West and Ilkeston in Erewash. I expect to announce further winners soon. I commend this statement to the House.

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

I thank the Secretary of State for advance sight of his statement. He inherited a Department in crisis and a rail franchising system in chaos. I acknowledge that he has had to work hard to try to put things back on track. He has rightly reversed many of the decisions of his two predecessors, not least by restoring some of the key posts in the Department that had recklessly been axed by them. We welcome the speed with which the right hon. Gentleman has worked with Richard Brown and his departmental officials to put together the plans he has set out today. However, it is also true that his revised franchising timetable has exposed the full impact of the failure of his predecessors, all of whom either remain in the Cabinet or have been promoted to it.

The Great Western contract will be awarded in July 2016—three years and three months later than planned. The west coast contract will not be awarded until April 2017—four years and four months late. Some competitions are to be delayed by as much as 50 months—not five months, but 50—yet instead of focusing on the chaos in franchising caused by his Government’s incompetence, the Secretary of State has decided to embark on an unnecessary and costly privatisation of the east coast inter-city services—a privatisation due to take place weeks before the date of the next general election.

The right hon. Gentleman hinted that investment was dependent on that happening, but will he acknowledge that the planned investment in the east coast main line, to be delivered by Network Rail, and the new generation of inter-city trains will happen regardless of this privatisation? Is it not the case that Directly Operated Railways has reinvested all of its £40 million profit in the east coast service on top of the £640 million paid to Government, with every pound of profit going back in for the benefit of passengers? That profit will, under the Secretary of State’s new plans, be shared with shareholders in future. Instead of talking down the current operator of the east coast, will he join me in praising the team there for the work they have done, and think again about his plans?

Will the Secretary of State update the House on the latest cost of the franchising fiasco, not least since his Department appears to be facing legal action from several more train operating companies? Will he correct the claim in his Department’s press notice today that this is the first time that a full franchise timetable has been published? I have with me the previous full timetable that was inherited from the previous Government and republished by his Government. Does he accept that what has changed is simply the fact that all the competitions have now been delayed?

The Secretary of State has also changed the proposed order of the competitions, leading in some cases to very long extensions to existing contracts. What is his thinking behind that decision? Will he clarify the role of the new franchising advisory board that Richard Brown recommended in his review and is now to chair? The first version of the written ministerial statement this morning stated that it would be a cross-industry body and that it would support bidders, but the corrected version appears to have dropped those claims. What, then, is it to do exactly?

What has happened to the Government’s previous enthusiasm for devolution? Will the right hon. Gentleman update the House on discussions with transport authorities covering the Northern and TransPennine franchises and services in the midlands? Does he still anticipate devolving responsibility at the revised start date for these franchises? Have the Government given further consideration to the calls from the Mayor of London and Transport for London for devolution of the remaining former Network SouthEast services?

For the sake of passengers, taxpayers and those working across the rail industry, the whole House wants to see us get beyond the problems of the past year. I wish the Secretary of State well in doing that, but I urge him to focus his efforts on getting back on track the bits of the system that need fixing, rather than those that do not.

[Mr McLoughlin]

I thank the hon. Lady for her response to my statement. It was not quite as warm as that of the CBI, Passenger Focus or the British Chambers of Commerce, which were much fuller in their acknowledgement of our putting the future for the rail industry so clearly.

The hon. Lady has obviously forgotten what the last Labour Secretary of State, the noble Lord Adonis, said on 9 February 2010:

“The Government believe that the ability of private sector operators to attract more passengers, grow the market, improve the service and receive revenue benefits of such actions is a key element in the current franchise model and one of the reasons for the significant growth delivered in recent years.”—[Official Report, House of Lords, 9 February 2010; Vol. 717, c. WA122.]

It is certainly true that we are talking about a huge growth in rail traffic and rail transportation, with people relying on the railways. I could go on to quote—but I know you prefer shorter answers, Mr Speaker—the right hon. Member for Tooting (Sadiq Khan), who occupied my position before the last general election, as he praised the role of franchising.

I believe that the east coast line should be the first under the new system. I pay tribute to the work done by Directly Operated Railways, which has operated it, but when the hon. Lady talks about figures, she should look at the track access charges paid in control period 3 by National Express when it ran the east coast line. It paid £210 million in track access charges, whereas DOR now has to pay its track access charges of £92 million. [Interruption.] I can tell the shadow Leader of the House that that was paid in the year to which I referred.

That explains why we have set out a very clear set of proposals about where we are going, notifying the industry about the future, which I think is a bright one, and setting out the huge investment that we—and, indeed, Network Rail—are putting into the rail industry.

[Several hon. Members]

rose—

[Mrs Cheryl Gillan (Chesham and Amersham) (Con)]

It is evident from today’s announcements that the Secretary of State’s Department will be under a great deal of pressure to deliver a vast programme of infrastructure projects. That pressure has obviously been intensified by the west coast main line franchise failure and of course the recent judicial review failure on the consultation process for HS2. Given those failures, what reassurances can the Secretary of State give us that his Department is still not overstretched and under-resourced?

[Mr McLoughlin]

I am grateful to my right hon. Friend for what I think was support at least for what I am doing on franchising. She talks about judicial reviews, but it is fair to say that of the 10 judicial reviews on HS2, the Department was found not to be wanting in nine cases. Only one judicial review went against us, and I am fully prepared to accept it. I wish the protesters, too, would accept the decisions made by the courts.

I can assure my right hon. Friend that my Department has the resources, and I am mindful of what Sam Laidlaw said in his report about what needed to be put into operation, and we have done that. I think that the Government’s setting up of the franchising advisory board was important—I am sorry that I failed to respond to the hon. Lady’s point about it earlier. It will report directly to the Government and to my advisory board on how the franchises are doing. I am sorry that a mistake was put out in one of the earlier press notices.

[Thomas Docherty (Dunfermline and West Fife) (Lab)]

I am disappointed that there has been no mention of the word “fares” in any of the statements so far. Will the Secretary of State clarify what he will do to bring down fares, and what he will do about staffed ticket offices?

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[Mr McLoughlin]

I think the hon. Gentleman will know that we are undertaking a full review of fares. That will report later this year, probably in June; the date may move a bit, but I hope it will report in June. He will make his points on fares during that review. However, I would point out that, on a number of routes, cheap fares are available if people book in advance.

[Mr John Leech (Manchester, Withington) (LD)]

By deciding to refranchise the east coast main line, we risk not being able to assess whether the public sector or the private sector is best for the passenger, the taxpayer and the railways in general. Surely as a minimum, therefore, we should allow Directly Operated Railways to bid for the franchise.

[Mr McLoughlin]

That is not the case—Directly Operated Railways is not a company in its own right; it is a company owned by the Department for Transport. We will certainly be able to see how the companies are doing. The process will be open. I have already seen reports, although I have not had it confirmed, that Virgin will put in a bid for the east coast main line, and a lot of people were very happy with the service they received on the west coast main line.

[Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)]

On that very point, given that Directly Operated Railways is owned by the Department for Transport, surely the Secretary of State could instruct Directly Operated Railways to put in a public sector comparative bid so that we can judge who will provide best value for money and best value for the customers.

[Mr McLoughlin]

I would just point out to the hon. Gentleman, who has been in the House some time, that he was very happy to support a Government whose Secretary of State said:

“I do not believe that it would be in the public interest for us to have a nationalised train operating company indefinitely”. —[Official Report, House of Lords, 1 July 2009; Vol. 712, c. 232.]

I agree.

[Mr Stewart Jackson (Peterborough) (Con)]

The east coast main line is integral to the economy of Peterborough, and my constituents are concerned about value for money, punctuality and cleanliness. The Secretary of State rightly mentions the PAC report, which found that this Government inherited systemic lack of leadership and of oversight, miscalculation of risk capital and failure to heed legal advice. Is he absolutely convinced that, in respect of the east coast main line, we have learnt those lessons and that mistakes will not be made again?

[Mr McLoughlin]

I can certainly assure my hon. Friend that we have learnt a number of lessons as a result of what happened with the west coast franchise. I well understand the importance to his constituents of the service that is provided on the east coast main line. It will be one of the first lines to get the new intercity express programme trains, which are due to come into service in 2018-19.

[Pat Glass (North West Durham) (Lab)]

As a north-east MP, I have been approached by a number of the companies that hope to bid for the east coast line, all of which are backed by foreign countries. Why does the Secretary of State think that it is not okay for the Government to run British railways, but it is okay for the French, German and Dutch to run them?

[Mr McLoughlin]

I think I pointed out clearly in the statement the vast growth we have seen in the railways. I do not think that that would have happened without privatisation. We have seen levels of investment that were not seen beforehand. I point out to the hon. lady the simple fact that I inherited the system of franchising that operated under the previous Government.

[Mr Rob Wilson (Reading East) (Con)]

I thank my right hon. Friend for his statement. Can he give a bit more detail on how he will increase competition and improve efficiency on the railways?

[Mr McLoughlin]

Reading station, in my hon. Friend’s constituency, has seen a major refurbishment. That will make a huge difference. There will be closures over Easter, but more platforms will open and the work at the station will conclude in two years. About £800 million has been invested. We would not be investing that kind of money if we were not getting a good return for the passenger, his constituents and those who are served further along that line by First Great Western.

[Hugh Bayley (York Central) (Lab)]

Passengers on the east coast main line have twice suffered the catastrophic collapse of a private franchise. What guarantee can the Secretary of State give that whichever company gets the new franchise will not collapse, and will the railway headquarters remain in York?

[Mr McLoughlin]

As for where the headquarters will be, that will depend on the case that is put forward by the various companies that I hope will compete for the franchise. The hon. Gentleman is right: two franchises collapsed under the previous Government, so that and this Government have both had some problems with franchising. I hope we have learnt our lessons. The rail industry has become a lot better at competing for these franchises.

[Martin Vickers (Cleethorpes) (Con)]

The Secretary of State rightly spoke of the innovation and ambition that he expects from the new franchise companies. Can he assure me that that innovation and ambition will extend to providing services off the east coast main line, most notably to Cleethorpes?

[Mr McLoughlin]

I am certainly willing to discuss in greater detail with my hon. Friend the services to his constituency, which I know have been very badly disrupted because of earth movements, which must be put right; the work is taking longer than we would have hoped.

[Graham Jones (Hyndburn) (Lab)]

The Secretary of State says that success on the railways has been achieved because of privatisation. The rolling stock in east Lancashire must be among the worst in the UK—it is absolutely dreadful. Privatisation has certainly not worked. The northern franchise is coming up, so what will he do to ensure that my constituents and others in east Lancashire benefit from that success?

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[Mr McLoughlin]

A lot of rolling stock has been and is being ordered. I hope to see a roll-out to all areas, including the hon. Gentleman’s constituency.

[Iain Stewart (Milton Keynes South) (Con)]

I very much welcome the statement as a sensible way forward for franchising, but may I urge my right hon. Friend to use the temporary extension of the west coast franchise to urge Virgin and London Midland to work together temporarily to ease overcrowding on services from Euston, in the evening peak at least, until the full franchise is let and London Midland’s new train order comes through?

[Mr McLoughlin]

I am grateful to my hon. Friend, who follows this subject particularly closely, not just for his constituents but as a member of the Select Committee on Transport. I know that he sent me and my right hon. Friend the Minister of State, Department for Transport a fairly comprehensive letter, which I hope to respond to shortly, and I will see what can be done.

[Ian Mearns (Gateshead) (Lab)]

This morning, a statement by the Secretary of State’s own company, Directly Operated Railways, on the east coast main line said:

“Since 2009, the East Coast business has been transformed. The Company has returned more than £640 million in cash to the taxpayer”.

That is not because of privatisation, but because the public sector bailed out the private sector. There is huge support for continued public ownership. The private sector has already let down the travelling public on this route twice. Why risk it again when we are returning so much money to the taxpayer?

[Mr McLoughlin]

I was simply referring to what was said by the Secretary of State in the previous Government. It was a short-term measure. By putting out the franchise to the private sector, there will be better services. That is what I am interested in. I am not particularly interested in who owns it. I am interested in getting better services to the hon. Gentleman’s constituents, who want to take advantage of them.

[Nigel Mills (Amber Valley) (Con)]

Although I welcome the new station for Derbyshire, can the Secretary of State assure me that it will not be serviced at the expense of two other stations on that line, namely Alfreton and Langley Mill?

[Mr McLoughlin]

I think that that was a welcome for the new station and for the greater investment. Of course one always has to strike a balance when these cases are put forward, but I think that Ilkeston, Derbyshire county council and my hon. Friend the Member for Erewash (Jessica Lee) made a strong case for why Ilkeston should be successful. The case was judged by a panel that did not include me, and I am very pleased that Ilkeston has been successful.

[Julie Hilling (Bolton West) (Lab)]

So much for the Government’s grand promises to radically change franchising—only three franchises will be let before the next election. Some of the extension periods are enormous, following the extensions that operators have already had. What guarantees has the Secretary of State had that there will be investment by those companies during the extension periods?

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[Mr McLoughlin]

I can assure the hon. Lady that there will be investment during those periods. In anything where I negotiate directly in awarding contracts, I look at the way services can be improved, and I hope to be able to make a statement shortly on some of those particular services.

[Tracey Crouch (Chatham and Aylesford) (Con)]

The Secretary of State will be aware that Southeastern is consistently one of the worst performing and most expensive train operating companies in the country. Can he therefore explain why it has been given the longest extension—50 months? Can he assure my constituents that the extension is not a reward for failure? What opportunity will passengers have to engage in the process of direct awards as it is finalised?

[Mr McLoughlin]

None of these direct awards will be made without getting the maximum we can out of the companies, talking to them and getting improvements in services. Where there have been let-downs, I will certainly want the companies concerned to address those problems.

[Kelvin Hopkins (Luton North) (Lab)]

May I suggest to the Secretary of State that there is indeed a public sector comparator for Britain’s railways: the nationalised railway systems on the continent of Europe? McNulty found that they are up to 40% cheaper to run than ours. We have the highest fares in Europe and a ballooning public subsidy. Is not keeping the railways in the private sector just driven by ideology and a desire to put public money into private pockets?

[Mr McLoughlin]

I am somewhat surprised—I am not sure whether the hon. Gentleman was expressing support for the McNulty recommendation that we should take costs out of the railways. I did not expect such support from the hon. Gentleman, but any help I can get, I am always happy to bag.

[Stephen Gilbert (St Austell and Newquay) (LD)]

The First Great Western franchise runs old trains with no wi-fi, and often no food, through run-down stations. Commuters in Cornwall and Devon would welcome average-speed rail, let alone high-speed rail. What can the Secretary of State do to push investment in this route before July 2016?

[Mr McLoughlin]

I know the hon. Gentleman was unable to attend my meeting with First Great Western because of other engagements. I am very keen to improve services, particularly in his part of the country. I am going there in a little while to look at those services first hand, and I will certainly pass on the representations he has made when I have discussions with First Great Western—and Network Rail, as both are involved.

[Mr Mike Weir (Angus) (SNP)]

Can the Secretary of State give a cast-iron guarantee that any east coast main line franchisee will at the very least be obliged to retain the existing level of service north of Edinburgh through my constituency to Aberdeen?

[Mr McLoughlin]

That is something I need to talk to the Scottish Government about.

[Jason McCartney (Colne Valley) (Con)]

I welcome the certainty today’s statement brings and the opening of the east coast main line franchise. Can my right hon. Friend confirm that passenger gain will be at the forefront of the franchising process?

[Mr McLoughlin]

I assure my hon. Friend that we are going to take passengers’ views very much into account in this system. That has not happened before, and today Passenger Focus has welcomed that development. It is part of the judgement that we must make when considering whether franchises are achieving their targets.

[Katy Clark (North Ayrshire and Arran) (Lab)]

Is the Secretary of State aware that tomorrow, to mark the 50th anniversary of Beeching, passenger groups and trade unions will demonstrate outside 80 railway stations against privatisation and job losses? Will he protect passenger safety and rule out job losses on the railways?

[Mr McLoughlin]

I am not sure the hon. Lady was listening to my statement. I pointed out that we have had a better safety record on our railways in the past few years than for a number of years, and we are one of the safest rail operators in Europe. Jobs have been created as a result of more people using the railways. Privatisation has doubled the number of people using the railways. I would have expected the hon. Lady to welcome that, and unions to be out welcoming it too.

[Priti Patel (Witham) (Con)]

In the light of the 27-month extension that has been given to the Greater Anglia franchise, what improvements to services will be appended to the existing franchise as a condition, so that local commuters see improvements to the service before the next franchise comes up?

[Mr McLoughlin]

I am grateful to my hon. Friend, who, along with colleagues from the Greater Anglia area, have given me a pamphlet setting out the changes being made. The Minister of State, Department for Transport, my right hon. Friend the Member for Chelmsford (Mr Burns), does not lose an opportunity to tell us how we must improve the services used by not only my hon. Friend’s constituents, but his.

[Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)]

The Secretary of State’s response to my hon. Friend the Member for York Central (Hugh Bayley) was disturbing. He said that he was not bothered who would run the franchise or where they came from, and could not confirm where such a company would be headquartered. Can he not use the tendering process to ensure that these details are nailed down and that the headquarters are in the United Kingdom?

[Mr McLoughlin]

I fear that the hon. Gentleman is taking me out of context. What I said was that my main concern is the service to the passenger, which I care very much about and want to see improve. The location of the headquarters will be up to the individual franchisees when they put their case forward, and they may make strong representations.

[Mr Philip Hollobone (Kettering) (Con)]

The Secretary of State and I, and our constituents, use the midland main line. Will he confirm when the franchise is up for renewal, and will he allow prospective bidders to come forward with proposals for new electric trains, instead of the Department insisting that they use recycled trains from other lines?

[Mr McLoughlin]

The date of the new contract for East Midlands will be mid-way through 2017, and a direct-operated tender deal will come to fruition in 2015. I hope my hon. Friend accepts that the fact that electrification of that line is included in next set of Network Rail works shows our commitment to it. I know how important—

[Maria Eagle]

In the next Parliament.

[Mr McLoughlin]

The hon. Lady says that, but the process starts in 2014, which is in this Parliament. I can assure her that 2014 will be in this Parliament, not the next Parliament, in which case we will be electrifying that line.

[Mr Speaker]

Before she attends to her next pressing commitment, let us hear from Catherine McKinnell.

[Catherine McKinnell (Newcastle upon Tyne North) (Lab)]

Thank you, Mr Speaker. I agree with the Secretary of State that if our country is to compete on jobs and growth, we need a transport infrastructure that is second to none. Can he therefore reassure me that today’s announcement is in no way driven by the view expressed by the chief executive of the North Eastern local enterprise partnership that there is no need to invest in north-east transport, and that he does not share that view?

[Mr McLoughlin]

There is every need to invest in transport across the United Kingdom, and LEPs have a very important role to play. I have not seen the exact quote, and I should like to see it in context.

[Heather Wheeler (South Derbyshire) (Con)]

I congratulate my right hon. Friend on today’s statement, particularly the great news about Ilkeston station, which will immediately transform and regenerate the area by providing connectivity. Is this the new dawn for the National Forest line—the old Ivanhoe line; can we look forward to that, too?

[Mr McLoughlin]

I am sure I will hear a lot more about the Ivanhoe line from my hon. Friend. I am pleased that she welcomes the opening of the station at Ilkeston, along with the other two stations I have announced today. There will be further work on that, but she is right: the fact that I, as Transport Secretary, have appeared at the Dispatch Box today is a reflection of Members wanting more services. That is why it is so important that we get the investment levels right and the train companies operating the kind of services passengers want.

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

Can the Secretary of State confirm that the open access slot on the east coast main line will still be available to services such as Hull Trains and will not be rolled up in any franchise tender document?

[Mr McLoughlin]

Yes.

[Duncan Hames (Chippenham) (LD)]

Wiltshire’s passenger rail offer stands to benefit from a multi-million pound grant from the coalition Government’s local sustainable transport fund. Now that the future of the franchise is clear, what is the Secretary of State’s advice to the promoter, Wiltshire council, and to First Great Western? Is it more “wait and see”, or that they should now get on with it?

[Mr McLoughlin]

I think I would need a bit more notice before answering that question. If my hon. Friend writes to me, I will look at the issues in more detail. [Interruption.] The Under-Secretary of State for Transport, my hon. Friend the Member for Lewes (Norman Baker), says, “Just get on with it.”

[Henry Smith (Crawley) (Con)]

I very much welcome my right hon. Friend’s statement. Thameslink and Southern Railway recently announced new rolling stock to operate from the four stations within my constituency. Can he assure me that the changes to rail franchising announced today will not affect the delivery of that rolling stock?

[Mr McLoughlin]

It certainly should not affect the delivery of the new trains. I know of no reason why it should and if I am wrong, I will obviously write to my hon. Friend.

[Penny Mordaunt (Portsmouth North) (Con)]

Portsmouth’s experience of franchises awarded under the last Government was that the rolling stock was downgraded from the agreement. When will passenger comfort and service standards be written into the agreements, to ensure that passengers have access to a toilet and that commuters are not crippled by suburban rolling stock being used on main line routes?

[Mr McLoughlin]

I am very disturbed to hear what my hon. Friend says, and I will certainly look into her points and get back to her in more detail in the very near future.

[Stephen Mosley (City of Chester) (Con)]

There have been massive improvements on the west coast main line since privatisation and Virgin, but one way to improve things in the future—to continue improving competition and to keep down costs—would be by encouraging more operators to enter the market. Is there anything in my right hon. Friend’s statement that would encourage open access operators to come in on more existing services?

[Mr McLoughlin]

There are some open access services, to which the hon. Member for Kingston upon Hull North (Diana Johnson) referred, on the east coast main line. I believe that applications for other open access services are with the Office of the Rail Regulator at the moment. I am happy to look at those and act on advice when I get it from the rail regulator.

[Mark Pawsey (Rugby) (Con)]

Rail users in Rugby will welcome the Secretary of State’s announcement about the Virgin franchise being extended on the west coast main line. Will he reassure my constituents that an extra 29 months will be enough to encourage Virgin to continue to invest in the railway?

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[Mr McLoughlin]

I know that Virgin is keen to continue with investments on that line and is happy to receive representations, both from my hon. Friend and from me, if good cases are made for investment that has a positive return.

[Rehman Chishti (Gillingham and Rainham) (Con)]

I thank the Secretary of State for his statement. May I also thank him for reducing train fares in the south-east by reducing the retail prices index plus 3% provision to RPI plus 1%? Under the previous Government, Southeastern had RPI plus 3% whereas the rest of the country had RPI plus 1%, and that was exceptionally unfair.

[Mr McLoughlin]

I am grateful to my hon. Friend for that. The truth is that we are putting massive further investment into the railways. That has to be paid for by both the fare payer and the taxpayer, but it is right that we try to get that balance right. I am pleased that the Chancellor was able to take the increases down to RPI plus 1%, not only for this year, but for next year.

[Mr Marcus Jones (Nuneaton) (Con)]

I welcome my right hon. Friend’s statement and his intent to put the interests of passengers at the heart of rail franchising. The best interests of rail passengers in my constituency would be served by the reinstatement of fast off-peak services to Nuneaton, which were taken away by the previous Labour Government in 2008. Will he come to Nuneaton and meet me to discuss this vital issue at greater length?

[Mr McLoughlin]

I am certainly more than happy to meet my hon. Friend at Nuneaton station. I believe that a date is going in my diary this afternoon—if it was not already, it will be now.

[Dr Thérèse Coffey (Suffolk Coastal) (Con)]

Suffolk commuters will be disappointed by the delay, although they are used to it as passengers, even though things have improved under Abellio. Will my right hon. Friend assure me that this will not deter or delay the needed investment in the freight line from Felixstowe to Nuneaton?

[Mr McLoughlin]

The announcements I have made today will have nothing to do with the freight line. Again, I make the point to my hon. Friend that we are seeing not only an increase in passenger numbers, but a huge increase in the amount of freight using our railways—I believe that the figure is about 60%. I know that most colleagues and the general public welcome that very much.

[Mr Speaker]

Order. Questions from 34 Back Benchers were answered by the Secretary of State in 25 minutes of exclusively Back-Bench time, which is an impressive record. Might I suggest that rather than sending his ministerial colleagues an Easter egg, the Secretary of State should send a DVD of the statement and the exchanges on it, which will be a great example for them to follow in the future?

Rail Franchising

Lord McLoughlin Excerpts

Tuesday 26th March 2013 Written Statements

[The Secretary of State for Transport (Mr Patrick McLoughlin)]

This morning I have announced to the stock market our long-term plans for rail franchising. This plan is designed to drive improvements to rail services, deliver on major infrastructure projects, and put passengers at the heart of a revitalised rail franchising system.

In addition to publishing a detailed timetable for all rail franchises over the next eight years, I am announcing the immediate start of the competition for the east coast franchise, currently directly operated, with the expectation the new franchisee will carry its first passengers by February 2015.

The new programme will provide long-term certainty to the market and support the delivery of the Government’s £9.4 billion rail investment strategy for 2014-19. The future competitions will also place passengers in the driving seat by ensuring that their views and satisfaction levels are taken into account when deciding which companies run our railway services.

In rolling out the programme the Department for Transport will work closely with the industry to negotiate further new services and more capacity in all franchising contracts while delivering the best deal for both passengers and taxpayers.

Delivering on Brown review recommendations, the new programme will provide a more sustainable schedule for rail franchising by delivering no more than three to four competitions per year, and staggering the two principal inter-city franchises, west coast and east coast, so they will not be let at the same point in the economic cycle.

In order to roll out the programme and stagger future competitions, it will be necessary to exercise a number of contractual extensions with current operators and to negotiate a series of direct awards with current operators. During these discussions the Department will look to negotiate further passenger benefits, which will ensure the best deal for tax payers. As a result, I will later today be serving notice on First Capital Connect and Southeastern to call seven period extensions available in their contracts.

The new franchise programme is set out below:

Search and Rescue Helicopter Services

Lord McLoughlin Excerpts

Tuesday 26th March 2013 Written Statements

[The Secretary of State for Transport (Mr Patrick McLoughlin)]

On 28 November 2011 the Department for Transport started a competition to procure search and rescue helicopter services to replace the joint capability provided by the Royal Air Force, Royal Navy, and Maritime and Coastguard Agency (MCA). The procurement process has now finished, and I wish to inform the House of the results.

I am pleased to announce that a £1.6 billion contract has been signed today to provide a search and rescue helicopter service for the whole of the UK with Bristow Helicopters Ltd. I would like to recognise the very high quality and the maturity of the bids provided by the two companies who reached the final stages in this vital competition for an emergency service in the UK. In buying such an important service that protects the safety of individuals in our maritime industries and in dangerous conditions on land and around our coastline, it is vital that we had a robust competition with credible and thoroughly developed propositions from industry. I am confident that we did. I am equally confident that the contract we are entering into with Bristow Helicopters Ltd represents the best solution for the UK over the next 10 years.

This contract represents a major investment by the Government in providing a search and rescue helicopter service using the most up-to-date helicopters and meeting the highest professional standards. Operations will commence progressively from 2015 and the service will be fully operational across the United Kingdom by summer 2017.

The contract will enable the RAF and Royal Navy to withdraw from search and rescue activities in the UK and retire their fleet of Sea King SAR helicopters. It will also ensure service continuity when the current contracted MCA service expires. Services under the new contract will operate from 7 to 10 years and will be managed by the Maritime and Coastguard Agency.

Experience of front-line operations has informed the military decision that the skills required for personnel recovery on the battlefield and in the maritime environment can be sustained without the need for military personnel being engaged in UK search and rescue. I want to pay tribute to the outstanding service personnel who have displayed such enduring commitment and bravery in RAF and Royal Navy search and rescue squadrons. The service they have provided for over 70 years has been exemplary and the country owes them all an enormous debt of gratitude. The decision to cease military involvement in search and rescue in the UK was not made lightly. But with the Sea King nearing its 40th year of service, the time has come to change the way the service is provided and the aircraft used.

The Maritime and Coastguard Agency, and its predecessor bodies, has 30 years experience of operating contracted search and rescue helicopter services using civilian aircrew. The existing MCA search and rescue contracts have delivered services of the very highest standards, and highly skilled civilian crews have won numerous awards for their bravery and dedication.

Bristow Helicopters Ltd is a UK company which has 36 years experience of providing search and rescue services in the UK, including 24 years with the MCA. The company has received numerous awards for SAR missions its civilian crews have undertaken, including chief coastguard’s commendations, coastguard rescue shields, the Prince Philip helicopter award and the Queen’s commendation for a mission in which 60 seamen were rescued.

Bristow Helicopters Ltd has completed more than 44,000 search and rescue operational hours in the UK and conducted over 15,000 missions, during which more than 7,000 people have been rescued by their crews.

The new service will operate a mixed fleet of 22 state- of-the-art helicopters from 10 locations around the UK. Sikorsky S92 helicopters will continue to be based at the existing MCA bases at Stornoway and Sumburgh, and at new bases at Newquay, Caernarfon and Humberside airports. AgustaWestland AW189 helicopters will operate from Lee on Solent, Prestwick airport, and new bases at St Athan, Inverness and Manston airports. All bases will be operational 24 hours a day. These base locations are strategically placed near areas with high SAR incident rates and will help ensure maximum operational coverage across the UK while reducing transit times to incidents.

This combination of aircraft and base locations will provide a world-class search and rescue capability. Helicopters will be able to reach a larger area of the UK search and rescue region within one hour of take off than is currently possible, and based on historic incident patterns we estimate that there will be an overall 20% improvement in flying times, with the average flight time reducing from 23 minutes to 19. Presently, approximately 70% of high and very high risk areas are reachable within 30 minutes. Under the new contract, approximately 85% of the same areas are reachable within this time frame.

The new contract will see the creation of over 350 new jobs. The AW189 will be assembled at AgustaWestland’s factory in Yeovil and Sikorsky plans to locate a supply hub in the Aberdeen region that will support not only the UK SAR programme but also Sikorsky’s large fleet of helicopters in the region serving the important offshore oil sector. The contract will have a significant impact on the UK supply chain, providing and sustaining jobs and apprenticeships.

The safety of professional mariners, aviators, all those travelling by sea or air, and all of those enjoying our seas, coasts and mountains for business or leisure is of paramount importance. This new contract, which will match or exceed our existing search and rescue capability, will ensure that this country’s search and rescue helicopter service will be the standard bearer, both in Europe and beyond.

GLA Transport Grant

Lord McLoughlin Excerpts

Monday 25th March 2013 Written Statements

[The Secretary of State for Transport (Mr Patrick McLoughlin)]

Following consultation with the Mayor of London, I have today determined the GLA transport grant for 2013-14 at £1.988 billion.

This grant is provided by the Government to Transport for London to deliver transport services and investment in the capital, including London Underground.

In line with my predecessor’s 20 October 2010 letter to the Mayor “Spending Review 2010: TfL funding agreement” £894.960 million of this grant is designated an investment grant to support delivery of the tube upgrade programme and other projects, as set out in annex B of the 20 October letter, and the remaining £1.09 billion is for the purposes of TFL.

EU Transport Council

Lord McLoughlin Excerpts

Monday 18th March 2013 Written Statements

[The Secretary of State for Transport (Mr Patrick McLoughlin)]

I attended the first Transport Council of the Irish presidency (the presidency) in Brussels on Monday 11 March.

The Council held a debate on the proposal for a directive of the European Parliament and of the Council on the interoperability of the rail system—part of the Commission’s fourth railway package. The aim of the proposal is to address concerns about significant delays and costs associated with vehicle authorisation that can occur in some member states (although this is not a problem within the UK). The proposal would also make a key change to the process for the authorisation of rail vehicles in the EU. It is proposed that this activity is only carried out by the European Railway Agency instead of by the national safety authorities within each member state. I noted that while there were clearly problems with the authorisation process which merited consideration, these were not causing particular problems in the UK. I suggested that the rail undertaking could be given a choice to go to either the national authority or the European Rail Agency for approval of rolling stock.

The Council also debated the recently published legislative proposal that would require member states to make available adequate infrastructure for alternative fuels. I welcomed the proposal and supported work to harmonise technical standards for alternative fuels, but noted that a technology neutral approach was needed.

The presidency reported on progress at official level discussions on the air safety reporting on occurrence. The Commission stated that the aim of the proposal was to provide a more efficient and uniform occurrence reporting system, focused on improving safety which would enable personnel in safety critical roles to freely report incidents without fear of recrimination.

Under any other business, the Commission gave an update on its “Stop the Clock” proposal on the aviation ETS directive. This proposal which is in the final stages of adoption, aims to facilitate a global agreement on tackling emissions from aviation at the General Assembly of the International Civil Aviation Organisation (ICAO) in September 2013.

EU Transport Council

Lord McLoughlin Excerpts

Thursday 7th March 2013 Written Statements

[The Secretary of State for Transport (Mr Patrick McLoughlin)]

I will attend the first Transport Council of the Irish presidency (the presidency) taking place in Brussels on Monday 11 March.

There will be an introductory discussion on the proposal for a directive of the European Parliament and of the Council on the interoperability of the rail system within the European Union (recast) (part of the fourth railway package). The UK is keen to hear the range of views and will then need to further consider the impacts through consultation with our stakeholders.

There will be an exchange of views on a proposal for a directive of the European Parliament and of the Council on the deployment of alternative fuels infrastructure and on a communication from the Commission on “Clean Power for Transport: A European alternative fuels strategy”, making up the clean power for transport package. The UK strongly supports the transition to cleaner transport and has the ambitious vision of almost every car and van reaching zero CO₂ emission levels at the tailpipe by 2050.

While I recognise that alternative fuels infrastructure is an area that can benefit from support, I am not convinced that setting rigid, mandatory targets for the deployment of technology-specific infrastructure is an effective way of building consumer confidence in new technology.

A progress report will be provided on a proposal for a regulation of the European Parliament and of the Council on occurrence reporting in civil aviation amending Regulation (EU) No. 996/2010 and repealing directive 2003/42/EC, Commission Regulation (EC) No. 1321/2007 and Commission Regulation (EC) No. 1330/2007. I fully support this proposal and welcome the progress that has been made.

Under any other business, the Commission will provide information on the aviation emissions trading scheme (ETS) and on the EU-Brazil comprehensive air transport agreement.

Oral Answers to Questions

Lord McLoughlin Excerpts

Thursday 28th February 2013 Commons Chamber

[Mr James Gray (North Wiltshire) (Con)]

1. How many new railway stations have been opened since privatisation; and how many further stations are planned in the future.

[The Secretary of State for Transport (Mr Patrick McLoughlin)]

Since May 1996, 56 stations in England and Wales have been opened. Local authorities, passenger transport executives, devolved bodies and Transport for London lead on the planning and promotion of stations. We are aware of about 40 stations which are being considered for opening by these bodies in England and Wales.

[Mr Gray]

The mayor of Bristol has recently announced ambitious plans that would include the reopening of Corsham station, a project for which many of us have campaigned for many years, ably led for much of his 31 years as a councillor by Councillor Peter Davis. Does the Secretary of State agree that if we are to get people off the roads and on to trains, we must do all that we can to make the mayor’s vision of a reopened Corsham station a reality?

[Mr McLoughlin]

I am grateful to my hon. Friend for bringing to my attention the excellent work that has been done by Councillor Davis in his constituency for a very long time. I am also aware of my hon. Friend’s campaigning efforts in relation to stations in his area. He will be aware that bids are being considered under the new stations fund, and I hope to make an announcement shortly.

[Mr Speaker]

I have been informed that the microphones are not working. I am sure that the Minister will make himself heard.

[Mr McLoughlin]

This Government are very committed to infrastructure, as demonstrated by our investment plans for electrification and other rail projects. We have committed to doing more in five years than the Labour Government did in 13. We have a very ambitious programme. There are 808 recommendations.

[Charles Hendry (Wealden) (Con)]

As a result of this investment programme, my constituents can now travel from a beautiful new station in Uckfield to the increasingly impressive station at London Bridge. Will my right hon. Friend look again at the availability of diesel rolling stock, so my constituents can have the same comfort on their journeys as they have at the stations?

[Mr McLoughlin]

Of course I am always prepared to listen to representations made by my hon. Friend on matters such as rolling stock. The new station at Uckfield is indeed fantastic, and I am aware that there is a huge amount going on at London Bridge.

[Heidi Alexander (Lewisham East) (Lab)]

20. The stations that my constituents in south-east London would like to see opened are a Bakerloo line station at Lewisham and a docklands light railway station at Catford. Those, of course, would also require major extensions to existing lines. Will the Minister tell me what planning if any is being carried out by his Department and Transport for London about the longer-term strategic transport needs in this part of London?

[Mr McLoughlin]

I thank the hon. Lady for her question. I can reassure her that all these matters are being looked at closely by Boris Johnson, Transport for London and the Greater London Authority.

[Kris Hopkins (Keighley) (Con)]

2. What recent progress has been made on high speed rail; and if he will make a statement.

[The Secretary of State for Transport (Mr Patrick McLoughlin)]

In January this year, I announced my initial route and station options for phase 2, from Birmingham to Leeds and Birmingham to Manchester. I intend to launch the consultation this year, earlier than previously planned. I have also set out my intention to secure the authority for departmental expenditure on HS2 phase 2 by way of a paving Bill, when parliamentary time is available.

[Kris Hopkins]

I am delighted that the Government have pledged to deliver HS2. Can my right hon. Friend give a further commitment to ensure that the financial benefits flowing from the pre-construction phase will be felt along the length of the line, particularly among firms in west Yorkshire, which are ready, willing and very able to assist?

[Mr McLoughlin]

I am grateful to my hon. Friend. Last week I made a trip to the north-east talking to a number of companies. I am aware that many companies up there and in other places along the route are interested in, and prepared to be involved, in all phases of HS2. It is a beneficial project for the whole United Kingdom and I can assure my hon. Friend that we will be looking at ways to involve British business in all aspects of the HS2 programme.

[Tristram Hunt (Stoke-on-Trent Central) (Lab)]

16. The updated case for HS2 involves significant downgrading of provision and a collapse of existing services to Stoke-on-Trent so that Milton Keynes can have its high-speed service. How does this help rebalance the economy and why is my constituency being disadvantaged by HS2?

[Mr McLoughlin]

Two weeks ago, I met representatives from Stoke, Newcastle-under-Lyme and Stafford. I welcome all views, and we will take a final decision on the route after the full consultation. The hon. Gentleman should be a bit more enthusiastic about such things.

[Mrs Cheryl Gillan (Chesham and Amersham) (Con)]

If HS2 goes ahead, it will do significant damage to our Buckinghamshire constituencies and the Chilterns designated area of outstanding natural beauty. We need the best environmental protection. Will the Secretary of State undertake to consider carefully this document I have with me? It is the Buckinghamshire mitigation plan, which has been painstakingly produced and endorsed by all our councils in Buckinghamshire, our business leaders and organisations, and it is intended to form the basis of a constructive and positive outlook for HS2.

[Mr McLoughlin]

I had better be careful how I answer my right hon. Friend. I will study the document she has given to me and ask for it to be studied by officials in my Department. We will do all we can to minimise damage in her area.

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

The Opposition firmly support HS2, but we want it delivered. It is therefore worrying that the Government’s mid-term review referred not to enacting, but to “carrying forward legislation”, even though the Secretary of State’s departmental plan continues to claim Royal Assent will be secured by May 2015. Will he confirm that, with all the dither and delay, botched consultations and judicial reviews, the hybrid Bill is still on track to secure Royal Assent in this Parliament?

[Mr McLoughlin]

This Government will have achieved far more in five years to build high-speed rail in this country than the previous Government did in 13. All I would say is that we are still on target to meet our aims by the end of this year. As to its progress once it is before Parliament, I really cannot say any more at this stage.

[Maria Eagle]

The Secretary of State has introduced some confusion, because we are meant to have two Bills. One is paving legislation, which we have not seen and we do not know what it does, and the second is the hybrid Bill that he said would be completed in this Parliament. He should be clear what Bills he will introduce and when. Which Bill will he introduce: a measure simply to give the impression of action or the hybrid Bill that we need if this vital scheme is ever to be built?

[Mr McLoughlin]

I am pleased to have the Opposition’s support in bringing HS2 to fruition. The simple point is that a paving Bill will deal with certain financial responsibilities. I am happy to discuss the details further with her. The hybrid Bill—the measure that seeks planning approval—is still on course to be introduced by the end of the year.

[Michael Ellis (Northampton North) (Con)]

3. What progress he has made on devolving speed limits to local authorities.

--- Later in debate ---

[Sir Alan Haselhurst (Saffron Walden) (Con)]

8. When he expects to meet the new owners of Stansted Airport.

[The Secretary of State for Transport (Mr Patrick McLoughlin)]

I have no immediate plans to meet the new owners of Stansted airport, as the sale has not yet been completed. However, I have no doubt that effective working relationships established between my Department and the airport will continue under its new owners, and I look forward to meeting the management team at an appropriate time in the future.

[Sir Alan Haselhurst]

What assurances can my right hon. Friend give to Manchester Airports Group, which will shortly be taking charge at Stansted, about improved train journey times from Liverpool Street to the airport, over and above the welcome but insufficient addition of the third track between Tottenham Hale and Angel Road?

[Mr McLoughlin]

I am grateful to my right hon. Friend for the acknowledgement that the third track will make a difference to the areas he mentioned. Obviously, we are always willing to discuss with airport operators how best to improve infrastructure connections, and I will be more than happy to do that once the new ownership arrangements are finally in place.

[Jim Shannon (Strangford) (DUP)]

rose—

--- Later in debate ---

[Mr Speaker]

I fear I was too generous.

[Mr McLoughlin]

Let me address the issue of Stansted airport. I am pleased that the Stansted sale has taken place, as it brings competition into the airport system, and I know that my right hon. Friend the Member for Saffron Walden (Sir Alan Haselhurst) has supported and advocated that for some time. As for the hon. Gentleman’s point about wider airports, obviously every case has to be looked at individually by the proper authorities.

[Mr Robin Walker (Worcester) (Con)]

9. What progress his Department has made on funding new railway stations.

--- Later in debate ---

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

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

[The Secretary of State for Transport (Mr Patrick McLoughlin)]

At the end of January, I was pleased to be able to announce to the House the preferred route for phase 2 of HS2. This is a once-in-a-generation opportunity to transform Britain’s connectivity, capacity and competitiveness. Last year, we announced the creation of a £20 million new station fund to be used to open new stations in England and Wales. I launched the competition in January, and I very much hope to make an announcement by the end of March on which stations have been successful. We have also received a large number of bids for the £170 million local pinch-point funds, the applications for which closed last week. We hope to make an announcement shortly.

[Mark Tami]

Will the Secretary of State update the House on any talks he has had with the transport Minister in Wales about the electrification of the Wrexham-Bidston line? When does he finally hope to make progress and when can we finally have a station that serves the Deeside industrial estate?

[Mr McLoughlin]

I am due to meet the Minister in Wales shortly to discuss a number of issues. I am sure that the hon. Gentleman’s point will be one of the particular issues we discuss. We have made major announcements about electrification in Wales. I realise that it affects south Wales, but I hope that the hon. Gentleman will think it a move in the right direction.

[Karl MᶜCartney (Lincoln) (Con)]

T2. Lincoln finally has one daily direct service to London despite being promised seven up-and-down daily links at the 2010 general election. Will the Minister assure me that when the new franchise is put out to tender, my constituents will see an expansion of direct daily services and weekend services, as we are well aware of the need for our expanding city to enjoy as many rail links to the capital as other cities across our nation?

[Mr McLoughlin]

My hon. Friend now serves on the Select Committee, and will therefore be well able to keep an eye on these matters. We are always being asked for extra services, but I assure him that I am well aware of the case for Lincoln, especially in the light of the important celebrations that will take place next year. I will certainly consider it, and will judge it in the context of all the other opportunities that we have, and requests that we receive, for the provision of extra services.

[Stephen Timms (East Ham) (Lab)]

Does the Secretary of State agree that, following the interconnection between High Speed 1 and High Speed 2, we will need a greater capacity and three trains per hour?

[Mr McLoughlin]

At least the right hon. Gentleman is consistent. As I have said on several occasions, I will consider what he has said and try to ensure that we provide that connectivity. There is also the question of trains running directly from Old Oak Common to the continent, which we will need to judge as we judge all other matters relating to high-speed rail.

[Mr Alan Reid (Argyll and Bute) (LD)]

T3. Rail passengers trying to book the cheapest fares are faced with a bewilderingly complex system. I hope that the fares and ticketing review will result in a much more simple, straightforward system. Can my hon. Friend tell me what progress is being made towards that?

[Natascha Engel (North East Derbyshire) (Lab)]

Was an upgrade of the current midland main line service considered as a cheaper, faster and far less destructive alternative to the building of a new London to Leeds HS2 route? If not, why not?

[Mr McLoughlin]

As I announced in my statement on the subject, HS2 is also about capacity. We are upgrading the line to which the hon. Lady referred, and I hope that its electrification during the period between 2014 and 2019 will benefit her constituents.

--- Later in debate ---

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

Following the well-documented problems with the west coast main line refranchising, a lot of concerns have been raised about Department for Transport decisions that may have left it less able to deal with refranchising as efficiently as we would all like. When will consultation begin on the refranchising of the Northern and Trans- Pennine Express franchises, both of which are extremely important to my constituents?

[Mr McLoughlin]

As was said earlier, I intend to make a statement about franchising in the light of the Brown inquiry findings, and I hope to make that statement soon.

[Oliver Colvile (Plymouth, Sutton and Devonport) (Con)]

T6. On Thursday 23 November I asked my right hon. Friend the Secretary of State if he had been able to make an assessment of the impact of the floods in the south-west on Plymouth’s economy. My right hon. Friend replied saying it was far too early to make such an assessment. What progress has he been able to make on this, and on fixing the railway line between Exeter and Plymouth?

[Mr McLoughlin]

I am grateful to my hon. Friend for the way in which he properly and consistently raises this point. He attended a meeting in the House with the chief executive and other senior people from Network Rail and also from FirstGroup, which I organised. It gave my hon. Friend and other colleagues the opportunity to put these questions to them. I shall visit my hon. Friend’s constituency later this year, and we will be talking more directly about these issues.

[Mr John Spellar (Warley) (Lab)]

If the Minister, the hon. Member for Wimbledon (Stephen Hammond), refers to the text of the answer to Question 18, he will be aware of the scandal surrounding wheel-clamping and the involvement of criminal elements which led to its banning. There are now concerns that these undesirables are moving across into ticket parking control. Already 300 companies will have direct or indirect access to the Driver and Vehicle Licensing Agency database. What steps is he taking to prevent abuse, and will abusers be denied access very quickly?

[Mrs Cheryl Gillan (Chesham and Amersham) (Con)]

Can the Secretary of State confirm that landowners along the proposed High Speed 2 route are well within their rights to refuse access to consultants from HS2 Ltd who want to survey their properties and land? Will he assure me that the paving Bill will not be used to remove those rights from landowners and home owners, but will simply be used to regularise the expenditure on HS2, which has not yet been authorised by Parliament?

[Mr McLoughlin]

When we present the paving Bill, my right hon. Friend will be able to see its contents. I have not yet secured the parliamentary time to be able to present it, but I very much hope to be able to do so— I say that as I look at Members who have far more influence in this matter than I do these days. At the beginning of questions, my right hon. Friend presented to me a substantial document setting out some of the improvements she would like. In order to put them in place, we will need access to some of the land.

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

On the welcome electrification of the midland main line, I am sure the Secretary of State will agree that one of the objectives is to reduce journey times, so will he confirm that the rolling stock on the newly electrified line will be the new intercity express trains that can complete the journey more quickly? The alternative is a cascade of existing rolling stock from other lines, but, because they are heavier with slower acceleration, we could find that we have longer journey times despite having spent a lot of money on electrification.

[Mr McLoughlin]

The hon. Gentleman and I share a close interest in this line as it serves both of our constituencies. I hear the representations he makes, but I am very pleased that we have been able to put the electrification of the line into the plan for 2014-19.

[Nick de Bois (Enfield North) (Con)]

My constituents living in the east of Enfield are delighted with the support from the STAR—Stratford-Tottenham-Angel Road—investment programme, supported by the Government, which includes a third rail track, thus providing a more reliable service than the one commuters have suffered under for far too long. Will the Minister also lend his encouragement to the continuation of investment along this line, so the full London Enfield-Stansted corridor can realise its economic potential?

Rail Franchising

Lord McLoughlin Excerpts

Thursday 31st January 2013 Written Statements

[The Secretary of State for Transport (Mr Patrick McLoughlin)]

When I cancelled the competition for the intercity west coast franchise last October, I also put on hold the live competitions for three other rail franchises. Having carefully considered the options for these three competitions, including the recommendations of the independent review by Richard Brown, chairman of Eurostar, I have this morning informed the stock market of my decisions about these three competitions. I am also today publishing Mr Brown’s advice about these competitions, having previously redacted it from his report in view of its potential stock market sensitivity.

In summary, Mr Brown recommended that the Government should look to continue the existing competitions for Essex Thameside and for the combined Thameslink, Southern and Great Northern franchise. But in the light of his wider advice about franchising policy, he also recommended that the current proposition for the Great Western franchise was not the right one. I accept those recommendations, and accordingly:

the competition for the Essex Thameside franchise will be resumed, with a revised invitation to tender being issued to the existing short-listed bidders over the summer. This will allow the Government to address important issues raised by Mr Brown, for example about capital requirements and the bid evaluation process, while avoiding unnecessary delay. The new franchise will have a contract term of 15 years, as announced at the start of the current competition;

the competition for the Thameslink, Southern and Great Northern franchise will also be resumed, with an invitation to tender being issued to the existing short-listed bidders. This will be for a seven-year contract term, again as previously announced. Consistent with Mr Brown’s recommendation, I expect this to be more of a management-style contract. This different approach will require more time to develop and test the proposition with the market, and I will set out the timetable for this competition in the spring;

having considered the options for the Great Western franchise very carefully, and taken account of Mr Brown’s advice, I have decided to terminate this competition. This is to allow for a more fundamental review of the franchise proposition, recognising that this is a large and complex franchise which will need to manage service delivery whilst the route is electrified and new rolling stock is introduced.

In keeping with the relevant invitations to tender, which made clear that bidders are responsible for their own costs, I do not believe it would be appropriate to reimburse the bidders.

The existing franchises for these services will expire before new long-term contracts can be put in place, so interim arrangements will be required to ensure continuity of rail services. My Department has exercised its contractual right to extend the current franchise agreement with First Great Western for a further period of 28 weeks, and I intend to do the same in respect of First Capital Connect.

I have also instructed my Department to commence negotiations with the existing train operators—First Great Western, First Capital Connect and c2c—with a view to entering into new interim franchise agreements with them. For Essex Thameside and Thameslink, the period of these interim agreements will be determined by the time needed to complete the competitions for the longer-term franchises, and will not exceed two years. For Great Western, I intend to negotiate an interim agreement for two years and will set out longer-term proposals in the spring.

The Government continue with their multi-billion pound programme of investment in the rail network regardless of the delay to the franchising programme, and my Department will seek to ensure wherever possible that the benefits for passengers previously sought in new substantive franchise agreements are not delayed.

I am mindful of my statutory duty to ensure the continuity of rail services and so, in parallel with my Department entering into negotiations with the incumbent train operators, I will also be instructing Directly Operated Railways, a Government-owned company, to undertake the minimum preparatory measures necessary to operate train services in circumstances where I am unable to agree the terms of an interim agreement with the existing train operator.

I am also today publishing for consultation a proposed new statement under section 26 of the Railways Act 1993. This statement indicates when passenger rail services are likely to be procured through an open competition, and when they might be procured by other means.

As I made clear when I published Mr Brown’s report, I will set out a full timetable for the future rail franchising programme in the spring, alongside a statement of franchising policy in light of both Mr Brown’s recommendations and the Transport Select Committee’s “Rail 2020” report.

High Speed Rail

Lord McLoughlin Excerpts

Monday 28th January 2013 Commons Chamber

[The Secretary of State for Transport (Mr Patrick McLoughlin)]

With permission, Mr Speaker, I would like to make a statement about our railways.

Investing in transport infrastructure is not a choice. To create jobs and to rebalance our economy we need better roads, better airports and better trains—and High Speed 2 is a central part of that investment. It will be an engine for growth throughout the country, which is why I am today announcing our initial preferred route north from Birmingham to Leeds and Manchester.

These new services will reach eight out of 10 of our largest cities: Birmingham, Liverpool and Manchester, as well as Leeds, Sheffield, Newcastle, Glasgow and Edinburgh. In all, 18 cities and many more towns, too, will be served by HS2 services. It will be completely integrated with the existing rail network; it will bring people and businesses together; it will create an estimated 100,000 jobs; and it has the backing of businesses and cities across Britain. We will introduce legislation for the first phase in this Parliament and legislate for the second in the next one. Construction is set to begin in 2017 and the first trains will run in 2026. The second phase will be open fully by 2033.

I would like to make three further points. The first is about the need for the line. HS2 will be the first main line to be built north of London for almost 120 years. Some say we do not need another, but the truth is that we are already good at squeezing the most out of our present Victorian railway network—and yes, we will get even more out of it in the coming years with the massive investment we have already announced. We are electrifying 800 miles of track, and building Crossrail and the northern hub upgrade. These will help to keep us going for the next decade or two, but what then?

Rail passenger numbers have doubled over the last 15 years, and demand will keep growing. The west coast main line is filling up. There is not enough space for all the commuters, freight trains and inter-city trains that need to use it. That is why, after very careful consideration, I am publishing my initial preferences for phase 2 of HS2. The case for going ahead rests on the capacity it will provide and on the new connections it will create. It is not just about faster trains to London, but about changing the way in which our great cities work and work with each other, providing easy links on journeys that are difficult today, giving muscle to the economies of the cities beyond London and producing an estimated £2 in economic benefit for every £1 spent.

Frequently, colleagues in this House call for better services to their local stations—they are right to ask for them—and High Speed 2 is part of the solution. Creating free space on existing routes will allow better services to places such as Milton Keynes, and more trains for commuters in areas such as Staffordshire, Leeds and Manchester. I am determined to ensure that the benefits of HS2 run much wider than the places directly served by the new line.

Let me turn to my second point. The detail of the route I am announcing today follows the Government’s announcements last year about phase 1 between London and Birmingham. On the western leg from Birmingham to Manchester, I propose two new high-speed stations. The first will be in the heart of Manchester, alongside the existing station at Manchester Piccadilly, allowing easy connections to places such as Salford, Stockport and Bolton and a journey time to London of just one hour eight minutes, down from over two hours today. The second station will be at Manchester airport, giving direct access to the wider Cheshire area.

HS2 will also serve Crewe via a dedicated link, and high-speed trains will continue on the existing railway to Liverpool, Warrington and Runcorn, which will also benefit greatly from reduced journey times. Further north, near Wigan, HS2 will connect with the west coast main line. High-speed trains can then continue at regular speeds to places such as Preston, Carlisle, Glasgow and Edinburgh. I am working with counterparts in Scotland on their aspirations for high-speed rail. I have already set out a long-term ambition to get journeys to Scotland below three hours.

Turning to the eastern leg, we will construct three new stations to bring people and businesses in the east midlands and Yorkshire closer to Birmingham, the north-east and London. The east midlands station will be located between Nottingham and Derby at Toton, and links will be upgraded to provide fast access to both. The second station will be at Sheffield Meadowhall, which already has good connections that can be improved further, allowing it to serve all of Sheffield and south Yorkshire.

The third station will be located in the centre of Leeds alongside the South Bank area. As with the western leg, there will be a connection from HS2 on to the existing rail network. A connection to the east coast main line, just nine miles from York, will allow the north-east to benefit, too, with London to York taking just one hour 23 minutes and London to Newcastle just two hours 18 minutes.

Finally, a decision on how best to serve Heathrow will be taken after the outcome of the Airports Commission has been considered by the Government. From day one, however, HS2 will provide far faster journeys than now via a major new interchange at Old Oak Common, linking to the Great Western main line, Crossrail and the Heathrow express.

The third point I want to make today is about design and help for those most affected. Many hon. Members want the Government to take that extremely seriously, and we do. Although the line will benefit the country as a whole, it will also create great anxiety among those close to the proposed route. We will therefore consult properly, design carefully and compensate fairly. Let me stress that today I am announcing an initial preferred route: this is the start of the process, not the end. We are ready to listen, and ready to improve. I want this line to create jobs and prosperity, not harm them. Where businesses may be affected, we will work with them to find a solution. We will now begin a period of informal consultation on phase 2 that will inform the official public consultation, which was originally planned for 2014 but which, I can announce, will be brought forward to this year. The aim is to reach a firm decision on the route of phase 2 in 2014.

I understand how such proposals can affect property markets. Compensation will therefore be as generous as on the first phase, and more generous than when we built the motorways. Today I am launching a public consultation on the exceptional hardship scheme for those who must sell but cannot do so because of HS2. Under this scheme we will pay the full price, valued as if there were no HS2. That will be followed by the next stage of our property compensation scheme once the final route is confirmed.

There are not many issues on which political parties in the House agree, but this is one of them. Regardless of the nature of the Government when the first trains run in 13 years’ time, what matters are the jobs, the rebalancing of the economy, and our country’s future prosperity. I commend this statement to the House.

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

I thank the Secretary of State for providing a copy of his statement in advance.

As the Secretary of State was generous enough to say in his foreword to the Government’s Command Paper, which was published today, HS2 is a project that was started by the last Government. Having successfully built HS1, Britain’s first new railway line for more than 100 years, we were determined that the rest of the country, not just the south-east, should benefit from vital investment to increase capacity and reduce journey times on our railway.

I assure the Secretary of State and the House that we are 100% behind this project. We want to see the line built, and we will continue to offer cross-party support, which will include helping to ensure that the necessary legislation reaches the statute book. I know that the Secretary of State faces considerable challenges in securing the support of colleagues on his side of the House. I have spent much of today defending the project in interviews opposite Conservative Members. I hope and assume that the right hon. Gentleman’s lengthy experience as Chief Whip will come in handy when it comes to quelling the rebellions.

The reason why we need to build this new high-speed railway line is clear: capacity. Our existing three main routes between north and south are congested, and in the case of the west coast line, nearly full. If we do not act now, we will face even worse overcrowding. Doing nothing is not an option. Continuing to patch and mend our existing lines is no longer good enough, and will not bring us the major reductions in journey times that HS2 will deliver.

Given the importance of the scheme, I wonder whether the Secretary of State appreciates the level of frustration at the slow progress made so far in the current Parliament. The consultation on the first phase has been botched, not by him, but in his Department. Submissions have been lost, and the Government now face defeat in the courts, which has the potential to take us back to square one on the consultation. The draft route for the second phase was finally set out only today, two and a half years after the election. No legislation has been published. Today’s Command Paper suggests that Royal Assent to the Secretary of State’s first hybrid Bill will not be achieved until some point in 2015, not by the time of the next election as was previously intended. This scheme is too important to be subject either to further delays or to incompetence in the Department for Transport. I hope that the Secretary of State will now do all that he can both to speed up progress and to avoid any further errors.

On the judicial review, will the Secretary of State update the House on when he expects to receive a judgment, and on the impact that a ruling against his Department would have on the plans that he has set out today?

Let me now turn to the specific details of the route announced by the Secretary of State. First, will the right hon. Gentleman think again about his decision to commit himself only to introducing legislation covering the first phase of the line from London to Birmingham in the current Parliament? Of course it is true that a single Bill would need to await completion of the consultation on the second phase of the route, but by introducing the Bill later in this Parliament and carrying it over to the next—as we did with the legislation for the building of Crossrail—we would secure Parliament’s approval for the whole route earlier than we would under the Government’s plans. That would open up the possibility of beginning construction in the north as well as the south, which is something that the Transport Committee has urged the Government to consider.

Secondly, will the Secretary of State look again at the issue of connectivity between HS1 and HS2, which many, including his own party’s Mayor of London and also Transport for London, believe to be totally inadequate? The proposal to make use of an existing part of the North London line looks like a back-of-an-envelope fix that is not focused on the long-term potential for international rail travel. Surely we need to build a dedicated, purpose-built link between HS1 and HS2. I urge him to look at this again.

Thirdly, will the Secretary of State listen carefully to the concerns that he will have heard today about the decision not to connect HS2 with our major city centres in some instances? I appreciate the difficulty, not least in terms of engineering and cost, of taking a new rail line into an existing major rail station and enabling through services, yet the consequences of not doing so are potentially economically to disadvantage city centres and encourage out-of-town development; and passengers losing much of the journey time savings achieved by using the new line as they transfer to get to their city centre destination. I know that there are differing views on this from city to city, and there is no single right answer, but the Secretary of State’s proposals today make it clear that the recommendations are just “initial” recommendations and I hope that that indicates a willingness to continue a dialogue on these issues, not least with the cities themselves.

Finally, will the Secretary of State accept that today’s decision to kick into the long grass how HS2 will connect to Heathrow is a major error? As he knows, our preference, as a result of our policy review, is to take the line direct via Heathrow. That was the Conservative party’s position before the last election and I am sorry that it no longer supports it. However, the Government’s compromise of a spur was at least a recognition of the need to provide a direct link to Heathrow from HS2. Abandoning that today sets back the potential for HS2 to deliver transfer traffic to our hub airport via high-speed rail rather than short-haul flights, an approach that has the potential to free up valuable slots that could be used for new long-haul flights to serve emerging markets.

The Secretary of State says that that decision has been taken because the Davies commission on aviation will not report back before 2015. Surely the answer is not to delay decisions on HS2 but to speed them up on aviation. Will the Government finally accept that 2015 is far too late to have an answer to our longer-term aviation capacity needs? Will he agree to our call for the commission to produce its final report way in advance of 2015, enabling cross-party talks on a way forward that can be put to people at the next election? That would deliver the certainty needed not just for aviation, but on the route for HS2.

I hope that the Secretary of State will consider those four issues in the spirit in which they are raised. We seek to improve the Government’s proposals, because it is vital that we get this right if all the benefits we all seek are to be realised.

[Mr McLoughlin]

May I start by thanking the hon. Lady for the support that she gives, in principle, to the project? I fully accept that HS1 was finished by the previous Government, but if we needed to get into a debating argument, I could say that it was started by the previous Conservative Government, who had the foresight to say how important it would be. Anyone who uses St Pancras station will have seen what a vast difference has been made to that station since HS1. It used to be a station that nobody wanted to go to, but now it is a destination in itself. I wanted to make that particular point first.

The hon. Lady raised a number of points. She said that I will have certain strong voices against me on this side of the House, but I dare say—I know this from some of the letters I have received from Labour Members—there will be some vocal opponents on her side of the House too. We will see how the debate goes, but that is the case. She also asked me to speculate on what might happen in the judicial review. I may have been in the Whips Office for 17 years, but I am not prepared to start speculating from the Dispatch Box on what the courts may or may not say. We will wait to hear what is said, because a judicial review has taken place. I believe that the Government have acted properly in the way this has gone forward, but we will wait to see what happens on that.

The hon. Lady talked about how some cities are disappointed not to have stations directly in the city centre. As I said in my statement, this is the start of the process and not the end of it, but I say to her that HS2 is not just about serving cities; it is about serving the regions, and so this goes a lot wider than just the cities. Some cities will have a station in them, because of the way in which things have been constructed and the way in which we can engineer into them. In certain other areas the engineering is much more difficult and a lot more expensive, but as I have said, we will of course listen. I have engaged with the city leaders—I know that some of them will be disappointed that I have not been able to say to those cities exactly where the route has gone until today—and so that process is there.

The hon. Lady talks about having a greater link between HS1 and HS2, and I am certainly prepared—I have received representations from the right hon. Member for East Ham (Stephen Timms), who is sitting directly behind her—to look at how that can be done. However, it is true to say that, even as presently announced, HS2 will be able to serve areas of the continent direct if there is a demand and need for that.

The hon. Lady made the point about Heathrow. The Government have set up a commission to try to get a consensus. We have a welcome consensus on HS2—cross-party consensus on big infrastructure projects is a tremendous advantage because of the time that such projects naturally take. However, it is right to see what the Davies commission says.

The hon. Lady’s final point was to ask whether we could hold the project off and bring the measures together in one Bill. That would lead to a tremendous delay. There would not just be a delay while we consulted, but a delay while the environmental assessment was conducted and consulted on. Far from making the process quicker, it would be delayed; I estimate that it would mean we probably could not have a Bill ready until 2018. I want a Bill to begin its progress in this Parliament. Of course, how the Bill progresses is up to Parliament.

[Mrs Cheryl Gillan (Chesham and Amersham) (Con)]

Today, Mr Speaker, thousands of people will be faced with the blight and uncertainty that you and I are familiar with, because our constituents across Buckinghamshire have suffered it for nearly four years. If the Government are determined to have HS2 and to force it through, and as the Secretary of State has stressed that the economic need is greater in the north, why not really reconsider and start HS2 in the north so that the benefits are more immediate and the connectivity to the south-east and on to global markets through the as yet undecided hub airport can be better guaranteed and integrated? Would not that make more common sense?

[Mr McLoughlin]

I know how my right hon. Friend feels on this subject, and I appreciate how Members whose constituencies have the line going through them have strong representations to make in the House. However, starting the route in the north, on which, up until today, work had not been done, would not be a better way of getting greater connectivity and connections. We should bear in mind that the routes I have said are overcrowded are even more overcrowded when they come into London, which is where we need the extra capacity in the first instance.

[Frank Dobson (Holborn and St Pancras) (Lab)]

The Secretary of State has said that he will ensure that people are compensated fairly. In December 2010, his predecessor said exactly the same thing about the people in my constituency who are affected by the first phase. However, at a meeting on Thursday in my constituency, officials from HS2 Ltd and the Department for Transport made it crystal clear to many people living near Euston station, including some of those who had exercised their right to buy their council flats, that they would not be fully compensated, and that others, including people whose businesses will be totally destroyed, will not be compensated at all. Can we rely on the Secretary of State to ensure that, when he says one thing in the House of Commons, his officials do not set it aside in the country?

[Mr McLoughlin]

I believe the Under-Secretary of State for Transport, my hon. Friend the Member for Lewes (Norman Baker), gave the right hon. Gentleman an assurance on that point last Friday. I am certainly prepared to meet the right hon. Gentleman to discuss these matters and to try and clear up what confusion there seems to be.

[Sir Alan Haselhurst (Saffron Walden) (Con)]

In view of the continued drift from north to south, which has been a characteristic of this country for many decades, and which places enormous pressure on services and facilities in constituencies such as mine, should not HS2 be hailed as the most dramatic attempt yet to correct that national imbalance to the advantage of the country as a whole?

[Mr McLoughlin]

When HS2 is fully up and built, it will have a major impact on the north and will help dramatically to rebalance the economy, which is so desperately needed. I am grateful for my right hon. Friend’s support.

[Helen Jones (Warrington North) (Lab)]

Is the Secretary of State aware that there is great concern in Warrington because it will not get an HS2 station? Warrington has developed its economy based on its good transport links, but we are unsure whether trains running on the existing line from Crewe will be sufficient. There is also concern that the line that will join the west coast main line at Wigan goes through parts of my constituency along a linear park, so we get the disruption without the benefits. Will he undertake to work with Warrington borough council and other interested parties to consider alternatives so that Warrington can benefit from HS2?

[Mr McLoughlin]

Of course, I am prepared to do that and I am sure that Warrington council will want to take part in the consultation I announced today. Warrington will be served in the same way as Liverpool and other areas, such as Wigan, but of course I will consider the hon. Lady’s representations. I want to make it clear that today is the start of the process, not the end. It is, however, the start of a very important and beneficial process for the United Kingdom.

[Mr Alan Reid (Argyll and Bute) (LD)]

Liberal Democrats very much welcome the announcement today that journey times to Leeds, Manchester, Glasgow and Edinburgh will be reduced by almost an hour. I also welcome the Secretary of State’s aspiration to reduce the journey time to Scotland to three hours. How are his discussions with the Scottish Government about that aspiration going?

[Mr McLoughlin]

I am grateful to my hon. Friend. I announced my proposals for Scotland last October, but I have been concentrating on the proposals I have set out today for the moment. However, my right hon. Friend the Minister of State spoke to members of the Scottish Government about the scheme and they are keen to be involved.

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

I welcome today’s statement, which represents important investment for the future, but will the Secretary of State confirm that that will be part of investment in an integrated national rail system so that areas that are not on the high-speed line will benefit, too?

--- Later in debate ---

[Mr McLoughlin]

Indeed I can. I am grateful to the Chairman of the Select Committee on Transport, who I know will probably want to carry out a detailed inquiry into this matter. Although it is true that some areas are not covered by high-speed rail at the moment, it will go up to Birmingham in the first instance and then to Manchester, and journeys will be able to carry on from there, as they do in Kent on the line that goes down to Ashford.

[Sir Roger Gale (North Thanet) (Con)]

Thank you, Mr Speaker; your calling me was timely. My right hon. Friend is to be congratulated on having the courage and conviction to seek to drive through investment in this country’s infrastructure future. The hon. Member for Garston and Halewood (Maria Eagle) sought to take the credit for High Speed 1, but the problem with that is that it is not finished at all. Will my right hon. Friend, while he is doing all this, ensure that HS1 runs through from Ashford to Thanet?

[Mr McLoughlin]

My hon. Friend sees the advantage of high-speed rail down to certain parts of Kent and wants to extend it. I am sure that he will carry on making that case, but at the moment I hope he will forgive me for saying that I want to try to concentrate on the plans I have announced today, although we are always looking to improve services across the country.

[Paul Blomfield (Sheffield Central) (Lab)]

The Secretary of State is right: what matters are the jobs. An independent study conducted for South Yorkshire passenger transport executive and Sheffield city council shows that a station in the city centre would bring up to £5 billion more into the local economy than a station at Meadowhall and would create 6,500 more jobs. Will the Secretary of State commit to keeping an open mind on that option?

[Mr McLoughlin]

I said at the beginning of my statement that I would keep an open mind. I accept the points about Sheffield and I know that there will be disappointment that HS2 is not going directly into the city centre. We have tried to ensure that we serve the whole of the region through the Meadowhall station, but as I have said, today is the start of the process and we will enter into discussions, as I have told the leader of Sheffield city council, with all the prominent leaders in the area.

[Mr Graham Brady (Altrincham and Sale West) (Con)]

I warmly endorse the proposed station at Manchester airport, but may I also stress the importance of the point that compensation for those living close to the route should be not only generous but creative in ensuring that we can move as quickly as possible towards realising the new high-speed rail route?

[Mr McLoughlin]

I am grateful to my hon. Friend for that question. We are consulting on compensation, and at the moment we are part of the way through that consultation. He makes an extremely important point, and I am glad that he welcomes the fact that we will serve Manchester airport as well as Manchester.

[Mr Dennis Skinner (Bolsover) (Lab)]

Would it not make a lot more sense for the Secretary of State to tell the Chancellor that he ought to be spending £33 billion straight away on capital projects—housing and all the rest? As for Derbyshire, why is it that the preferred route seems to travel to the heavily populated eastern side of Derbyshire? I do not think it touches Derbyshire Dales at all. How many homes will be blighted as a result?

[Mr McLoughlin]

Many things can change—people in the Whips Office can become Ministers—but one thing is certain: the hon. Member for Bolsover (Mr Skinner) will come out with the same arguments against any proposals. [Interruption.] He wants us to spend money now. We are spending money now. We have had massive investment in the railways and we have announced massive investment in the railways. He points out that the route does not go through my constituency. I am well aware of that, but I can assure him that I took very careful advice and followed the recommendations. The sustainability summary goes into great detail about why that particular part of the route was chosen. There are many people who would have liked it to go to Derby.

[Andrew Bridgen (North West Leicestershire) (Con)]

I declare an interest. Plans unveiled this morning suggest that the preferred route of HS2 will pass within 100 feet of my family’s home in North West Leicestershire. Can my right hon. Friend confirm the level of consultation already undertaken by those planning the HS2 route? East Midlands airport in my constituency was unaware until this morning’s announcement that a tunnel was planned under its site, and a developer of an area north of the airport looking to produce a rail freight interface was equally not consulted. The route puts in jeopardy a potential £450 million private sector investment now in my constituency, and the creation of up to 7,000 new jobs.

[Mr McLoughlin]

There is always a dilemma for us as to who we talk to and consult. It would have been wrong of me to start telling people where the route was going before I had laid the documents before Parliament this morning. We will start that consultation. If my hon. Friend has had a chance to look at the sustainability summary that goes with the document I published today, he will have seen on page 70 that the area he is talking about is marked for tunnelling under East Midlands airport, and the east midlands gateway rail freight interchange development site is clearly marked. We will obviously work with developers to minimise the impact wherever we can.

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

The decision to delay the recommendations on the Heathrow spur until the Howard Davies commission has reported means that my constituents face at least another two years of uncertainty. Is not one solution to bring forward the Davies report, as my hon. Friend the Member for Garston and Halewood (Maria Eagle) suggested? Even if the Davies commission’s interim report this year dealt with the matter, we would have more certainty about the connection with Heathrow.

[Mr McLoughlin]

I hear what the hon. Gentleman says. I have made clear the Government’s position as to why we have done what we have done. We think it is a sensible way to go but I am sure he will make those representations in the consultation process.

[Michael Fabricant (Lichfield) (Con)]

Although I accept the need for an additional line to relieve capacity on the rail network, this route plunges through rural Britain, and rural Staffordshire, and should use existing transport corridors. It blights the environment, homes and lives. Does my right hon. Friend understand that what my constituents and all our constituents need is certainty, so that they understand the impact the line will have, what vibrations it will produce and what the visual impact will be? Most important of all, they need certainty about what compensation they will receive.

[Mr McLoughlin]

Part of the reason for bringing forward the consultation period from next year to this year is to help my hon. Friend’s constituents, but I fully accept that where the line is going is inconvenient to some people. We cannot build a brand-new railway line and not upset anybody. We believe that it is very much in the national interest and in the interests of the United Kingdom.

[Mr Gerry Sutcliffe (Bradford South) (Lab)]

It was a great pleasure to see the Secretary of State and the Prime Minister on platform 6 at Leeds station this morning. He knows the benefits of HS2 to areas such as Leeds and Bradford. This is a long-term project and there are two projects in the short term that will help both Leeds and Bradford—the links to the airport so that it can expand and the Wortley curve between Leeds and Bradford. Will he look at those projects as well?

[Mr McLoughlin]

It was a pleasure also to see the hon. Gentleman this morning. I hope that as a result of having announced in this way where the route will go, improvements can be achieved in the interim period in some of these areas. I have talked to Leeds city council about the site that we have earmarked, and it is, as I understand it, content with it.

[Andrea Leadsom (South Northamptonshire) (Con)]

The consultation on compensation for phase 1 ends this week. First, I urge my right hon. Friend not to take the word of his departmental officials but to look himself at the impact of the exceptional hardship scheme on many constituents whose lives have been utterly destroyed by incompetent and completely inconsistent panels. Secondly, I urge him to reconsider a property bond. Although officials have said there is no evidence that that works, it would be the one way to ensure that the blight that extends for miles in my constituency is removed. Finally, I urge him to look at the fairness of compensation between phase 1 and phase 2.

[Mr McLoughlin]

As my hon. Friend correctly said, the consultation period on the compensation scheme ends at the end of this week. I know that she has put her own representations into that consultation, and of course I will consider them among many of the other representations we have received.

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

I welcome the Secretary of State’s announcement of an HS2 station in Sheffield. There is an argument for having it in the city centre, but I understand why he has chosen Meadowhall on grounds of cost and time. In particular, it should be a station for the whole city region. Will he therefore give an assurance that his Department will work closely with local councils and South Yorkshire passenger transport executive to make sure that there is real connectivity in the whole Sheffield city region so that everyone can get to the station at Meadowhall easily?

[Mr McLoughlin]

I am grateful to the hon. Gentleman. He is a former leader of Sheffield city council and therefore speaks with authority on this matter, as he does in his role as Chairman of the Communities and Local Government Committee, so I will obviously look at those matters. He is right that there is a balance to be struck. He will see that in the document we address why we have arrived at the conclusions and recommendations that we have, but I am of course prepared to listen to any further representations.

[Mr John Leech (Manchester, Withington) (LD)]

I warmly welcome the Secretary of State’s announcement, particularly the decision to have an additional station at Manchester airport. However, there will be some anxiety among people in south Manchester about the proposal to have a deep tunnel under homes there. What assurances can he give that they will not face years of disruption?

[Mr McLoughlin]

When carrying out these big projects, there will always be the problem of inconvenience caused during the period of construction, and I hear what the hon. Gentleman says. We will work with local communities to try to ensure that we minimise the impact. I am glad that the area he mentions is to be tunnelled; a lot of colleagues would wish that more of the route was tunnelled.

[Ann Coffey (Stockport) (Lab)]

I support this announcement, but it is estimated that it could take up to 20 years to build the line to Manchester. Will the Secretary of State assure me that in the meantime priority is given to making sure that the west coast main line gets the investment needed to improve the current line from London to Manchester, including upgrading Stockport station?

[Mr McLoughlin]

The hon. Lady is consistent, if nothing else can be said about the points that she makes; I had already anticipated the question before she had finished asking it. Yes, money is continuing to be spent on the west coast main line. I will look into the position with her local station, as I promised to last time she asked me a question. I failed to write to her then, and I will certainly do so this time.

[Richard Harrington (Watford) (Con)]

I commend the Secretary of State and the Government on this courageous and very significant announcement on HS2. It is particularly of interest to the cities with new stations, but what does he think the effect will be on my constituents in a place that will not be directly affected but is suffering from very poor capacity and a very poor service from London Midland?

[Mr McLoughlin]

My hon. Friend hits on one of the fundamental reasons why we need to build HS2. It is not just a matter of journey times but capacity. Freeing up capacity will allow us to have more services from areas such as my hon. Friend’s, as is so desperately needed.

[Stewart Hosie (Dundee East) (SNP)]

I welcome the statement, thank the Secretary of State for advanced notice of it and recognise the Government’s ambitions for reduced journey times to Scotland. However, reducing journey times to Glasgow and Edinburgh, and further along the east coast to Dundee and Aberdeen, would require HS2 to go beyond Manchester and Leeds. I know that the Secretary of State is doing this in a phased way, but when will he be in a position to tell the House the time scale for the completion of HS2, so that every major city on the island will be able to benefit from it?

[Mr McLoughlin]

I face a dilemma because some people want us to go a lot faster while others among my colleagues do not want us to go at all. We will have to bear that in mind, but I hope that we will have fuller plans before any decision is made about independence. That depends, however, on whether the hon. Gentleman can let me know the date of the referendum.

[Iain Stewart (Milton Keynes South) (Con)]

I welcome my right hon. Friend’s statement, particularly how it has highlighted the benefits of the network to my constituents in Milton Keynes. On the issue of city centre against parkway stations, may I draw his attention to the evidence from the continent that both can work and that the critical point is having good connectivity across the region? May I also urge him to continue to work with local authorities and local businesses to make sure that this delivers?

[Mr McLoughlin]

I thank my hon. Friend for his support and, indeed, for his work on the Transport Committee. I agree entirely with his point. Setting out our plans now and confirming them, I hope, by early next year will enable us to look at connectivity between stations in the period between our plans being outlined and the actual development.

[Graham Stringer (Blackley and Broughton) (Lab)]

There is tremendous support for this project in Manchester and the north of England, but, having heard from the right hon. Member for Chesham and Amersham (Mrs Gillan) that, surprisingly, she supports building HS2 from the north of England, will the Secretary of State reconsider what he said earlier and put both phases of HS2 into one hybrid Bill and consider building them from the north of England? In doing so, he would unite the House in an even bigger way than it is united at present.

[Mr McLoughlin]

The hon. Gentleman says that that would unite the House in a more cohesive way, but it is fairly united for such a controversial subject, as has been clear from the exchanges so far. As I have said, the proposals to go from north to south would mean further delay, and I point out that the first part of the route was actually published by the previous Government, who also thought that the right way to go was from London to Birmingham in the first instance.

[Jeremy Lefroy (Stafford) (Con)]

I thank the Secretary of State for his announcement. It is vital that the best possible mitigation, including some realignment, is offered to those of my constituents who will be affected by the route. If HS2 is to bring jobs and prosperity, as he desires, to the wider west midlands region, a stop on the route is required in Staffordshire. May I ask him to take that fully into account?

[Mr McLoughlin]

I certainly will. My hon. Friend makes a valid point. The route goes substantially through his constituency and areas that are not near motorway corridors or the like, and I will certainly look at his representations.

[Lucy Powell (Manchester Central) (Lab/Co-op)]

On behalf of Manchester, I strongly welcome the proposals that the Secretary of State has laid before Parliament today, not, as others have said, as a panacea to stop the north-south divide, but to build on 15 years of urban renaissance started by the Labour council and Labour Government. The redevelopment opportunities presented in my constituency in and around Manchester Piccadilly station are also exciting. May I echo the comments of other colleagues and ask the Secretary of State to consider introducing a hybrid Bill, so that we can maximise those opportunities here and now, not several years in the future?

[Mr McLoughlin]

I welcome the hon. Lady to the House and to the Transport Committee, where she will no doubt want to return to this topic on many occasions. I was slightly chastised earlier by the hon. Member for Garston and Halewood (Maria Eagle) on what the courts may or may not say about HS2. If I followed the route suggested by the hon. Member for Manchester Central (Lucy Powell), I know that I would find myself on the wrong side of judicial reviews.

[John Stevenson (Carlisle) (Con)]

I welcome the announcement on the developments on HS2 and the substantial investment in our rail network. However, will the Secretary of State confirm that the existing west coast line will continue to receive the investment that it requires? In particular, will signalling upgrades be more than just like-for-like and bring capacity improvements?

[Mr McLoughlin]

I can assure my hon. Friend of that. Over the new year, I saw the upgrading work at Shugborough tunnel. That is the sort of investment that no one normally sees. Until that work was done, trains could go through the tunnel at only 50 mph. They can now go through it at 125 mph. I fully accept the need for continued investment. My hon. Friend’s constituents will benefit from High Speed 2 up to Manchester and will be able to pick up the normal lines beyond that.

[Stephen Pound (Ealing North) (Lab)]

May I strongly endorse what the hon. Member for South Northampton- shire (Andrea Leadsom) said about property bonds? The Secretary of State is speaking about phase 2, but he has mentioned Old Oak Common. Although I am extremely grateful to the Minister of State, Department for Transport, the right hon. Member for Chelmsford (Mr Burns) for his engagement with the local community, fear still stalks the streets of Greenford, Northolt and Perivale. Will the Secretary of State say whether it is his preference for that section of the line to be tunnelled? If so, it will be a great relief to many long-suffering constituents of mine.

--- Later in debate ---

[Mr McLoughlin]

The hon. Gentleman is making a representation to me that he has made before to the Minister of State. We will consider that representation and when we are in a position to make an announcement, we will do so.

[Andrew Jones (Harrogate and Knaresborough) (Con)]

I congratulate my right hon. Friend on his excellent statement. Does he agree that this investment should be seen alongside the other major rail announcements for the north that have been made recently, such as those on the northern hub and the TransPennine Express electrification project? Together, those projects will transform the experience of rail in the north.

[Mr McLoughlin]

I agree completely with my hon. Friend. Those announcements show the Government’s commitment to the rail industry and to the railway services that we all want in our constituencies.

[Mr Jim Cunningham (Coventry South) (Lab)]

Will the Secretary of State say how major cities such as Coventry will benefit from this project, bearing in mind the representations that I made to him some weeks ago on that matter? Secondly, and more importantly, there will inevitably be people who fall outside the compensation formula. What does he intend to do about that, because I know of cases in Coventry and Warwickshire?

[Mr McLoughlin]

I am willing to listen to any representations, but a line has to be drawn somewhere on such developments. I think that Coventry will be served by the large station at the Birmingham International exchange before the line goes into Birmingham Curzon Street. It is up to Coventry to work with the Department to work out the best possible routes to link in with the line so that people in Coventry have the advantage of HS2.

[Nigel Mills (Amber Valley) (Con)]

I warmly welcome the announcement and especially the fact that the route will miss my constituency off to the east. Will the Secretary of State confirm that there will be good links not only to Nottingham and Derby, but to smaller local stations, such as the three in my constituency?

[Mr McLoughlin]

I am grateful to my hon. Friend and constituency neighbour. As I have said, capacity is one of the key reasons for building the new route. It will be the first railway line to be built north of London in 120 years. We need extra capacity. By freeing up capacity, the line will enable there to be better services elsewhere.

[Paul Goggins (Wythenshawe and Sale East) (Lab)]

I, too, welcome the proposed station at Manchester airport, which will help to sustain many new jobs across the city region and particularly within airport city and other parts of the Manchester enterprise zone in my constituency. Will the Secretary of State ensure that those who are responsible for HS2 continue to work closely with the local authorities and the airport so that these different initiatives are properly linked together and bring the maximum possible benefit to local communities?

[Mr McLoughlin]

I thank the right hon. Gentleman for his support and for his attendance at last week’s meeting of the all-party parliamentary group on high speed rail. I can give him that assurance. As I said earlier, this is the start of the process, not the end. We want to get the maximum possible value out of the investment.

[Andrew Selous (South West Bedfordshire) (Con)]

On a number of recent occasions, trains pulling into Leighton Buzzard station have been so full that no passenger has been able to get from the platform on to the train. Will HS2 help them?

[Mr McLoughlin]

I very much hope so. My hon. Friend makes a point about the important need for greater capacity, and I will look in great detail at how the issue may affect his constituents.

[Mr David Anderson (Blaydon) (Lab)]

Without any three-lane motorway north of north Yorkshire, and with a dual carriageway that ends just north of Newcastle, the north-east has the worst road system in the country. We are now being told that we will also have a second-rate railway system. Does the Secretary of State agree that the best we are going to get in the north-east is HS1.5?

[Mr McLoughlin]

I am sorry that the hon. Gentleman feels that way. We have just announced a major investment in dualling the A1 up to Newcastle, and I will look at other schemes in due course.

[Mr Adrian Sanders (Torbay) (LD)]

May I lodge with the Secretary of State some very real concerns from the far south-west in Devon and Cornwall? The area already suffers from the slowest rail speeds and most expensive fares, yet billions of pounds are being invested elsewhere. What message can he give the people of Devon and Cornwall that they will benefit directly from that investment?

[Mr McLoughlin]

I very much recognise the position faced by the hon. Gentleman’s constituents as far as the great western line is concerned, and I have organised a special briefing for Members of Parliament from Network Rail about that section of the rail network. As a new member of the Transport Committee, the hon. Gentleman will want to keep that under guard.

[Stephen Timms (East Ham) (Lab)]

May I press the Secretary of State on the concern raised by my hon. Friend the Member for Garston and Halewood (Maria Eagle) about the HS2-HS1 interconnection? As I understand, under current proposals it will be limited to, at most, three trains per hour. As I am sure the Secretary of State will want trains from new HS2 destinations to run beyond London and across the channel, will we not have to do better than that with the interconnection?

[Mr McLoughlin]

I think I tried to address that in an earlier answer. Of course I want to look at how the connection works, and it will be possible to run some services from Old Oak Common direct to the continent if there is demand for that. We will certainly look at the issue, and at how the whole London interconnection works.

[David Mowat (Warrington South) (Con)]

This project is very important to the wider economy in the north and north-west. Given that the revised business case remains considerably better than, for example, the Crossrail business case, will the Secretary of State do what he can to deliver this project before 2033?

[Mr McLoughlin]

I take that as a request to get a move on and get building a lot quicker. We will see what progress we can make.

[Robert Flello (Stoke-on-Trent South) (Lab)]

Although the Secretary of State’s comments about Staffordshire provide some crumbs of comfort, may I impress on him that unless we have a station in the north Staffordshire area the damage that will be done to our economy will be huge? Conversely, if we get one, the benefits will be equally massive.

[Mr McLoughlin]

As I said at the beginning of my statement, and as I shall now reiterate, these are our initial proposals. We have considered the issue, and I hope the hon. Gentleman will look at the early part of the sustainability study, particularly page 10, which shows the work that went in to try and model this. However, I hear what he says, and what my hon. Friends the Members for Stafford (Jeremy Lefroy) and for Lichfield (Michael Fabricant) are calling for.

[David Rutley (Macclesfield) (Con)]

This is positive news for the north-west. What assessment has my right hon. Friend made of the impact that HS2 will have on existing west coast main line services and, not to put too fine a point on it, services to and from Macclesfield station?

[Mr McLoughlin]

As I have said—I hope I am not becoming boring by being repetitious—we are hoping for greater capacity not only so that my hon. Friend’s constituents are served, but so that we see some movement of freight from road to rail.

[Hugh Bayley (York Central) (Lab)]

I welcome the statement and especially the wise and logical decision to connect the High Speed 2 line with the east coast main line at York. Does the Secretary of State realise that next to York station is the biggest city centre development site anywhere in western Europe—the York Central site? It is important for his officials to safeguard land on that site for additional platforms to get maximum connectivity with conventional rail services, and for local government Ministers to work with York city council to ensure that the area is developed as a business site to benefit from the new railway.

[Mr McLoughlin]

I am very pleased that the hon. Gentleman is so welcoming of the development. High Speed 2 will stop just short of York, but it will obviously be served by it. One of the things that we want to look at with this project is how we get regeneration in areas. This should open up huge potential, especially around station sites, for the north to benefit from connections with the rest of the country.

[Christopher Pincher (Tamworth) (Con)]

I became aware that the proposed Leeds alignment will run just a few hundred yards from Wilnecote and Stoneydelph in my constituency when I looked at the HS2 website this morning. Will my right hon. Friend agree to meet me to discuss mitigations in the Tamworth area if his initial preferred alignment becomes his final preferred alignment? More particularly, can we discuss other, better alternatives?

[Mr McLoughlin]

I am certainly prepared to meet my hon. Friend and discuss alternatives that he may wish to put forward. I hope that he will realise that in deciding on the route through his constituency we have tried to follow an existing major road network. Of course, I will meet him and listen carefully to any representations he has to make.

[Ian Austin (Dudley North) (Lab)]

I strongly support High Speed 2 and very much welcome today’s announcement. The Secretary of State will no doubt have followed the debate about the arrangements between Birmingham International and the city centre. May I suggest that a way of dealing with that controversy and its unpopularity in certain areas would be to take the route along the existing line north of the city and, instead of having the link in the city centre, have it close to the M5/M6 junction in the black country, alongside the M6 at Walsall? There is a huge railway yard there already, and it would have much better links across the black country and Birmingham. It would support exactly what the Secretary of State has said about rebalancing the economy, because it has the largest concentration of manufacturers anywhere in western Europe. It would greatly help with the regeneration of the black country, and it would be easier, cheaper and quicker to build.

[Mr Speaker]

It sounds to me as though the hon. Gentleman wants an Adjournment debate on the subject.

[Mr McLoughlin]

If the hon. Gentleman has one, I will make sure that a Minister answers it properly. I would need to look a bit more closely at the maps, but I think that he is doing the opposite to what most other colleagues with city centre sites are doing. He is asking me to take it from a city centre, and he is thus demonstrating the problems that we have in trying to get a route established and accepted by everyone and that serves the best areas of the country.

[Andrew Percy (Brigg and Goole) (Con)]

The Secretary of State said that this proposal must benefit all our regions, and he will know that the best part of our region lies to the east, in the Humber. Can he confirm whether work will begin now on how we can improve our connectivity into Sheffield Meadowhall or say how we can benefit from the increased capacity on the east coast line?

[Mr McLoughlin]

The truth is that my hon. Friend is looking forward to the benefits that will come from this. Part of the reason for making the announcements now is that once we have the route signed off—it is out for consultation—we can look at getting the right connections into these stations in the longer term, for the benefit of all parts of the United Kingdom.

[Alison McGovern (Wirral South) (Lab)]

High Speed 2 is incredibly important for all of Merseyside and our city region’s development. Further to the answers that the Secretary of State has given already on connectivity, will he confirm that the northern hub should not be the end of better inter-city rail services in the north of England, but the start and that we need to start planning for better now?

[Mr McLoughlin]

Yes. I was in Liverpool and met the mayor a few weeks ago. It was substantially easier to get from London to Liverpool than it was to get from Liverpool back to Derby.

[Sir Bob Russell (Colchester) (LD)]

Taxpayers of Essex, Suffolk and Norfolk and users of the Greater Anglia line will contribute to the cost of HS2. We have had years of neglect by successive Governments of rail investment in East Anglia. The Secretary of State has said that he is determined to make sure that the benefits of HS2 run much wider than the places directly served by the new line. How will it benefit Colchester?

[Mr McLoughlin]

Huge investment—£2.2 billion, I think —is already going into the area that serves the hon. Gentleman’s constituency. I appreciate that he might like us to have a high-speed link to his area. We are being ambitious, but I am afraid that that ambition can only go so far.

[Tristram Hunt (Stoke-on-Trent Central) (Lab)]

This morning I received an e-mail from a constituent who said he found it utterly incredible that the line should go from Birmingham to Manchester without stopping at the north Staffordshire conurbation. There is anger in Stoke-on-Trent that HS2 will just skim the west of the potteries and not stop there. What benefits can HS2 bring to my constituents? Will the Secretary of State explain the current thinking for a stop at Crewe, rather than one along the M6? What assurances can he give that the existing west coast main line will not be affected?

[Mr McLoughlin]

The hon. Gentleman needs to look at the two documents we have published, but I have made it very clear that today is the start of the process and I expect him to make representations, as he has just done. I know Stoke-on-Trent and the surrounding area incredibly well. We have made improvements to its road infrastructure, but they have been very controversial over many years.

[Paul Maynard (Blackpool North and Cleveleys) (Con)]

I strongly welcome the Secretary of State’s statement, not least as a demonstration of our party’s commitment to the north of England. Although Blackpool will not be getting a high-speed station—I will not stand here today and demand one—will he none the less explain when Network Rail will be able to make an assessment of how much capacity the HS2 project will free up on the west coast main line?

[Mr McLoughlin]

My hon. Friend asks a reasonable question. I think I can best answer it by saying that we will have a better indication of exactly what capacity will be freed up once the line is confirmed and Network Rail is asked to start the work on the consequences of building the line.

[Cathy Jamieson (Kilmarnock and Loudoun) (Lab/Co-op)]

The Secretary of State made reference not only to passenger capacity on the west coast main line but freight. Given the importance to the Scottish economy of connectivity between Scotland and the rest of the UK, will he discuss with the Scottish Government how freeing up capacity will benefit freight services to and from Scotland?

[Mr McLoughlin]

Now that the hon. Lady has asked me to do so, I will.

[Mr Philip Hollobone (Kettering) (Con)]

Whenever and from wherever construction starts, and whatever configuration High Speed 2 takes, will the Secretary of State ensure that this is a British railway, with the trains built in Britain, the tracks built in Britain, all the equipment coming from British firms, and British workers and British firms building the railway?

[Mr McLoughlin]

I am determined, by the long-term nature of the notice we are giving, that British companies will be able to compete and win the business that will be available, and will go out to tender in the usual way. From what I have seen of British engineering, I believe it is well able to compete with anywhere else in the world.

[Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)]

The publication today states that the Government have been working productively with the Scottish Government on this issue for two years, yet after two years the only firm commitment we have is for a further study into high-speed rail to Scotland, followed by identification of a remit for further work. That does not sound like very high-speed decision making to me. Why will the Government not commit themselves now to extending high-speed rail to Scotland, and start preparing the route now to make sure it actually happens?

[Mr McLoughlin]

I gently say to the hon. Gentleman, because he is bringing a chord of disharmony into what so far has been a fairly harmonious occasion, that we have made more progress on high-speed rail in two years than the previous Government did in 13.

[Mr Ben Wallace (Wyre and Preston North) (Con)]

I warmly welcome the announcement today that my constituents’ journey time from London to Preston will be reduced by 30% from 2 hours 8 minutes to 1 hour 24 minutes—a great thing for Preston. However, there is still some confusion among the public, who believe that a stop is necessary to benefit from the speed of HS2. Will the Secretary of State make it absolutely clear to many of my constituents, who use Lancaster and Preston, that as soon as phase 1 is started they will benefit from the reduced journey times, whether or not they have a stop?

[Mr McLoughlin]

My hon. Friend is right to say that his constituents will benefit from the opening of the first part of the line, from London to Birmingham, because the trains will be able to travel at high speed between those two cities, saving about 40 minutes on overall journey times. And that is before we have extended the line further north.

[Catherine McKinnell (Newcastle upon Tyne North) (Lab)]

Improvements to rail, road and air transport infrastructure are vital if regions such as the north-east are to continue as leading exporters, so will the Secretary of State outline what discussions he has had with regional airports, such as Newcastle International airport, about ensuring that the HS2 plans lead to a properly integrated transport system?

[Mr McLoughlin]

As I said earlier, some of my discussions with various bodies have been curtailed until the route is announced, but those conversations should start in earnest as a result of today’s announcement.

[Henry Smith (Crawley) (Con)]

I commend my right hon. Friend for his statement. He is right about how important connectivity with the London hub airport will be when the issue of the hub is determined. Will cognisance also be taken, however, of the importance of linkage with major international gateways to the south of London, such as Gatwick airport and the Gatwick Express?

[Mr McLoughlin]

My hon. Friend is right. We cannot look at these things singly, but must consider how they impact not only on Heathrow airport but on other airports and availability to constituents who wish to use those services.

[Mr Frank Field (Birkenhead) (Lab)]

I direct the Secretary of State back to the question about construction beginning in the north. Given that London is all-powerful and will see this project completed, if it is in London’s interest, will he take a new stance on the hybrid Bill? If the leaders in Liverpool, Manchester and Leeds could fit in with his timetable, might we have a hybrid Bill please?

[Mr McLoughlin]

Of course I will consider the representations, but it is not so much a question of those leaders of cities in the north fitting in with the timetable, but of the other areas we have to address in the proposals. We are out to consultation, and the right hon. Gentleman will have heard that some people are not too happy with the route proposed and would like changes and adjustments to be made. That takes time, and once we have settled on the route—as I said, we are out to consultation, which means I have not settled on one—we will have to carry out environmental assessments and the like, which I am afraid take considerable time. I am keen to get on with this as quickly as possible, but I am constrained by what we need to do.

[Michael Ellis (Northampton North) (Con)]

I commend my right hon. Friend for what was, in many respects, a courageous statement and one that has support from all corners of the House. Will he confirm, however, that rail fares, which are already high in many areas, will, in respect of HS2, not be too high and will make HS2 accessible to all?

[Mr McLoughlin]

The Department is currently conducting a fares review. Like everybody else, I am keen to see passengers benefit from cheaper fares, but the truth is that those able to book trains in advance and outside rush hour can already get some very cheap fares—cheaper, in fact, than they have been for many years. However, we do not mean to build a railway only to see people unable to take advantage of it. I will want to ensure that people can take advantage of those services.

[Angela Smith (Penistone and Stocksbridge) (Lab)]

I welcome the Secretary of State’s commitment to a south Yorkshire-based approach to the placement of the HS2 station in the Sheffield city region. Indeed, the choice of Meadowhall suggested today seems to offer a reasonable way forward. Will he consider ensuring, however, that the enabling aspects of the hybrid Bill contain at least a commitment to phase 2? Let us separate the enabling from the quasi-judicial aspects of the Bill.

[Mr McLoughlin]

I am grateful to the hon. Lady for that suggestion and will think on it a little more.

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

When it comes to the impact of High Speed 2 on Lancaster and the rest of the north-west beyond—dare I say—Manchester and Merseyside, if I understood it correctly the Secretary of State was saying that high-speed trains from London to Manchester would enter the west coast main line just above Wigan, stopping at Preston, Lancaster, Carlisle and Glasgow, so that we in Lancaster will therefore also get shorter journey times.

[Mr McLoughlin]

The answer—[Interruption]—I am sorry, I was trying to follow exactly what my hon. Friend was saying and checking the points he was making—is that shorter journey times to Lancaster will certainly be a result and a benefit for his constituents.

[Mr Russell Brown (Dumfries and Galloway) (Lab)]

On the very point that the hon. Member for Lancaster and Fleetwood (Eric Ollerenshaw) has just made, what will be important for those travelling beyond the Wigan area is quality connectivity, so that people can continue and eventually complete their journeys. The Secretary of State has also mentioned that the Minister of State has been in contact with the Scottish Government. Is it best that I meet his right hon. Friend to discuss how those discussions have gone?

[Mr McLoughlin]

I am more than happy for the hon. Gentleman to meet the Minister of State, and I will do all I can to facilitate such a meeting.

[Huw Irranca-Davies (Ogmore) (Lab)]

The Secretary of State will be pleased that I am not asking for a re-routing via Bridgend or Aberystwyth—yet!—but what I would ask, echoing the sentiments of my hon. Friend the Member for Hayes and Harlington (John McDonnell), is whether he will consider bringing forward the Heathrow spur, which would bring a direct, long-term economic advantage to south Wales, Bristol and Avon.

[Mr McLoughlin]

I think the hon. Gentleman is referring to the great western spur, which is in the outline of the plans we have talked about for 2014 to 2019. As somebody who had a daughter who went to Aberystwyth university, I think that what he refers to would create some challenges for us.

[Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)]

Given the dire economic statistics that we saw on Friday, what will the Secretary of State be doing to ensure that those in the UK steel industry are given priority in procurement contracts for long steel products—I am thinking of sites such as Scunthorpe and Teesside beam mill—so that regions such as the north-east can benefit from this project?

[Mr McLoughlin]

The hon. Gentleman makes a perfectly reasonable point. I want to see British industry able to benefit from this. There will need to be competition, but I am pretty sure that British industry will be able to compete and provide the services we want and require. We will also be looking for engineers who can work on this scheme. Indeed, the construction phase will create many thousands of jobs, with, I think, the scheme creating many thousands of jobs for the longer-term future of the country.

[Jonathan Ashworth (Leicester South) (Lab)]

As an east midlands MP, the Secretary of State will know that his announcement today has not been universally welcomed across Leicestershire. It is certainly true that the city of Leicester will not see the same advantages that the wider Nottingham and Derby conurbations will see, with the proposal to put the station at Toton. One way he could win over his Leicestershire critics would be to bring forward—and start sooner—the electrification of the midland mainline.

[Mr McLoughlin]

The hon. Gentleman makes a tempting offer. We are committed to the electrification of the midland mainline, which will have substantial benefits for Leicestershire. I would add that East Midlands airport was built by the three counties—Leicestershire, Derbyshire and Nottinghamshire—and is situated at the north of Leicestershire, which the county at that time felt was beneficial to it. The Toton sidings are basically not far from the north end of the county, so I think they will have benefits for Leicestershire as well.

[Ian Mearns (Gateshead) (Lab)]

Twenty years ago, I could travel from Newcastle to London in 2 hours and 38 minutes. In his announcement today, the Secretary of State said that in 20 years’ time we will be able to do it in 2 hours and 18 minutes. Does he think that 40 years is enough for 20 minutes, given the importance of connectivity for the economic regeneration of a place such as the north-east of England?

[Mr McLoughlin]

I imagine that I would need to check out the timetable that the hon. Gentleman has just alluded to, because it is not unknown for Opposition Members to look on the past through rose-tinted glasses. Part of the problem might be that more people are now using the railways so there are more stops, which means that his journey is perhaps taking a little longer than it used to. However, I am very much minded to ensure that his region, like every other region in the north of the country, can benefit from the proposals I have brought forward today.

[Mr William Bain (Glasgow North East) (Lab)]

The Secretary of State will be aware of the strength of support in the Scottish Chambers of Commerce and in Glasgow and Edinburgh city councils for the extension of high-speed track right up into Scotland’s two major cities. Would it hasten the evaluation of the economic case for that if the Minister were to commit to legislating, in this Parliament, in a single Bill covering the entirety of the route between London, Manchester and Leeds?

--- Later in debate ---

[Mr McLoughlin]

I refer the hon. Gentleman to the reply that I gave some time ago.

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

I, too, welcome today’s announcement, and I particularly welcome the news that there will be two stations in Manchester. That makes a great deal of sense in relation to the connectivity that will already exist through the northern hub investment. May I reiterate to the few critics of high-speed rail that the case for this project is based on capacity, not on journey times? If we were to spend the same amount of money on the west coast main line, we would get nothing like the amount of capacity that will be freed up by High Speed 2. That is why this is the right choice for the northern economy.

[Mr McLoughlin]

The hon. Gentleman is absolutely right. This will give faster journey times, and I think that people will welcome that, but one of the overwhelming reasons for High Speed 2 is capacity. It is a fact that no new railway line has been built north of London for 120 years, and it is high time that that was put right. If we are to add to the capacity, it is right that we should take advantage of high-speed trains, which every other country in Europe and all our major competitors have already adopted.

[Andrew Gwynne (Denton and Reddish) (Lab)]

This will be good news for the Greater Manchester economy, albeit some time in the future. May I press the Secretary of State on the point made by my hon. Friend the Member for Ogmore (Huw Irranca-Davies) about connectivity? If the Greater Manchester economy is to get maximum benefit from High Speed 2, we will need proper connectivity with the continent, with London and with Heathrow airport. We can do better than the plans set out in these proposals. Will the Secretary of State commit to providing proper connectivity with Europe and with Heathrow airport?

[Mr McLoughlin]

What we have announced today is exciting for the north and for the future of the rail industry in this country. The hon. Gentleman talks about connectivity, but this is a matter of connectivity not only with the south but with the major cities of the north. As I said earlier, it can take longer to get from Manchester to Derby than from Manchester to London. This is about connectivity between the major city regions in our country, and we are determined to work towards that. I thank the hon. Gentleman for his comments, and I hope that we can satisfy his requests at least in part.

High Speed Rail

Lord McLoughlin Excerpts

Monday 28th January 2013 Written Statements

[The Secretary of State for Transport (Mr Patrick McLoughlin)]

High Speed 2 is the engine for growth that Britain needs to compete and succeed in the global economy. It will generate jobs, rebalance the economy and secure the country’s future prosperity.

In January 2012, the Government announced the HS2 route that will link London and Birmingham, known as phase 1, following a thorough consultation. Today, I am publishing my initial preferred route, station and depot options for phase 2 linking Birmingham with Manchester, the East Midlands, Sheffield and Leeds.

There will be a comprehensive programme of engagement on all aspects of phase 2 and a public consultation, planned originally for 2014, has been brought forward to begin ahead of schedule this year.

A Command Paper published this morning. “High Speed Rail: investing in Britain’s future phase two—the route to Leeds, Manchester and beyond”, details the Government’s preferred route for 211 miles of new track and stations in the following locations:

Manchester (alongside the existing city centre terminal at Manchester Piccadilly).

Manchester Airport (linked directly to Manchester Airport’s three terminals).

Leeds (in the South Bank area of the city centre).

South Yorkshire (at Sheffield Meadowhall, alongside the M1).

East Midlands (between Nottingham and Derby at Toton, alongside the M1).

In addition, Crewe will be connected directly with the high speed line via a dedicated link. HS2 will be integrated with the existing national railway network allowing cities and towns in England and Scotland beyond the high speed tracks—including Liverpool, Glasgow, Edinburgh, Newcastle, York, Preston, Warrington, Lancaster, Carlisle, Durham and Darlington—to benefit also from new connections and dramatic time savings thanks to trains able to use both conventional and high speed railway lines.

HS2 means our railway network will have the capacity to cope with ever increasing numbers of passengers and free up space on existing rail lines for more commuter, rural and freight services, meaning fewer cars and lorries on our roads.

We will deliver a fair deal for people whose homes, land or businesses will be affected by construction by continuing to offer a generous compensation package and investing millions in tunnels and other mitigation measures. That is why we are also launching today a public consultation on an exceptional hardship scheme to assist property owners and compensate people fairly. This is an interim scheme; longer-term compensation proposals will be developed in the future as they have been for phase 1.

Construction on HS2 will begin in four years and phase 1 will open to passengers in 13 years. Phase 2 will open six years after that.

A series of supporting documents setting out in detail the Department for Transport’s phase 2 proposals are available on: https://www.gov.uk/government/policies/ developing-a-new-high-speed-rail-network.