National Policy Statement: Airports

Debate between Lord McLoughlin and Andy McDonald

Monday 25th June 2018 Commons Chamber

[Andy McDonald]

I thank my right hon. Friend for his intervention but, of course, we must always ensure that any growth is delivered sustainably—that has to be the point.

Hon. Members will not have the opportunity to see the hugely important Committee on Climate Change report before they vote. Global warming is the single most important issue facing the world, yet Members of this House are being asked to vote today without full knowledge and without the full set of facts.

That is outrageous behaviour from the Government, and from the Secretary of State in particular. The Justice Committee said last week that his multi-billion pound reforms to the probation service in 2014 will never work. In his two years as Secretary of State for Transport, he has laid waste to the railways, slashing and burning and leaving a trail of scorched earth. Rail electrification cuts, franchising meltdown and timetabling chaos have caused misery to millions. His mismanaging of airport expansion, as he has mismanaged other areas of transport, will present much bigger risks, with immensely more serious consequences.

The Transport Secretary has consistently demonstrated poor judgment and a reliance on incomplete, unreliable and non-existent evidence, yet he stands here today and expects the House to take his word for it—to take a leap of faith with him. Labour has been clear that we will support airport expansion only if the very specific provisions of our four tests are met. We are not against expansion; we are against this option for expansion, as presented.

The north-west runway is too risky and it may be illegal. There are simply too many holes in the case. There are too many hostages to fortune for the taxpayer and for any future Government.

[Sir Patrick McLoughlin (Derbyshire Dales) (Con)]

Will the hon. Gentleman give way?

[Andy McDonald]

I will give way, and I will then make progress.

[Sir Patrick McLoughlin]

I am grateful to the shadow Secretary of State. He says that climate and the expectation of meeting our climate responsibilities are vital, but does he accept that Professor Dame Julia King, who is a member of the Committee on Climate Change, sat on the Davies commission and fully endorsed its report?

[Andy McDonald]

The critical word is that it “could.” That is the important point—not that it will, but that it is quite possible that it could. There is an awful lot of work to get from one place to the other.

High Speed Rail (West Midlands - Crewe) Bill

Debate between Lord McLoughlin and Andy McDonald

2nd reading: House of Commons & Allocation of time motion: House of Commons & Carry-over motion: House of Commons & Money resolution: House of Commons & 2nd reading & Allocation of time motion & Carry-over motion & Money resolution
Tuesday 30th January 2018 Commons Chamber

[Sir Patrick McLoughlin (Derbyshire Dales) (Con)]

I congratulate my right hon. Friend the Secretary of State on bringing forward this Bill. I also congratulate all those people in the Department for Transport and in HS2 who are working to finalise these proposals. It is a pleasure to follow the shadow Secretary of State, the hon. Member for Middlesbrough (Andy McDonald), although I think he slightly spoiled his speech by going off piste and talking about electrification. We will take no lessons from Labour on electrification, given its record between 1997 and 2010, during which time it electrified 10 miles of railway. I would like to say that that was a snail’s pace, but I think that a snail would have travelled further in 13 years than Labour did with its electrification.

[Andy McDonald]

The former Secretary of State seems to have totally forgotten the 67 miles of HS1 that were electrified then. Those 67 plus 10 miles add up to a lot more than this Government have ever electrified.

[Sir Patrick McLoughlin]

I think that HS1 was operating before Labour came into government.

Rail Franchising

Debate between Lord McLoughlin and Andy McDonald

Wednesday 10th January 2018 Commons Chamber

[Andy McDonald]

The whole issue of overbidding and making promises that cannot be kept is a consistent characteristic of the modern rail environment.

If the Government’s rail franchising system cannot deliver competition and payments to the Treasury, what is the point of it? The Secretary of State will no doubt be able to give a clear and straightforward answer to that.

[Sir Patrick McLoughlin (Derbyshire Dales) (Con)]

rose—

[Andy McDonald]

As I allow an intervention for the last time, perhaps the former Secretary of State can give us some indication of the point of a franchising system that does not deliver the promised premiums.

[Sir Patrick McLoughlin]

Will the hon. Gentleman tell us, during the course of his speech, how franchising changed between 1997 and 2010, when it was defended continually by the previous Labour Government as the best way to see extra investment in the railways? While he is telling us that, will he also confirm that there are actually more people employed on the east coast main line than there were under the previous people operating that line? Will he welcome the fact that the Pacer trains, which were referred to earlier, will actually go as a result of the new Northern franchise, that the Secretary of State has brought in?

[Andy McDonald]

Let me take the last point first. The European Union dictates that persons with restricted mobility are not served by the Pacers. The time of the Pacers has been up for a long time, and I am glad to see the back of them. I am glad that plenty of people work on the railways, and delighted that the previous Labour Government went about making the railways safe, given the disaster that was Railtrack, which delivered us Potters Bar, Hatfield and Paddington. That was the legacy that the previous Labour Government inherited, and we turned our railways into the safest in Europe, so I am very proud of what we did.

Direct awards and franchise extensions in the rail industry have been overlooked in many of the rail debates. These are contracts that the Government cannot or will not refranchise, and which they are ideologically opposed to running in the public sector. The train companies name their price to the Government for running these hand-to-mouth contracts, which simply keep the trains running in the short term and provide no long-term benefits or investment.

The west coast route has operated on a series of direct awards since 2012, with reports of another extension beyond 2019. Another key inter-city franchise, Great Western, has been operating under a direct award since 2013, when the Government cancelled the franchise competition. Scandalously, Great Western may run as a direct award for 10 years until 2023. The Government cannot refranchise the rail operation because their management of Network Rail has been so poor and the Great Western electrification programme has been such a shambles.

I predict that there will be more direct awards and contract extensions to rail franchises announced by the Government. The east midlands franchise is already on an extension to 2019 and will probably get another one. I also predict that the Secretary of State will need to give Virgin and Stagecoach a direct award on the east coast because he will not be able to deliver on his east coast partnership by 2020. It is simply inconceivable that he will be able to establish a framework, gain regulatory support, put the idea out to tender, receive and evaluate bids, and award the contract within the timeframe he has set out. A direct award to VirginStagecoach on the east coast will allow the companies to continue to profit from the line while they invest even less.

Once again, the Secretary of State needs to be entirely candid with this House: does he, or does he not, anticipate giving Virgin-Stagecoach a direct award to run rail operations on the east coast while he sets out his east coast partnership? Can he confirm whether that will take place? If he does, can he tell the House how much less the value of premium payments to the Treasury would be under this arrangement than under the original franchise?

What is the Secretary of State’s solution to his failing franchising model, as competition dwindles and premiums to the Exchequer reduce? It is quite simple: more taxpayer and fare-payer support for train operating companies. The next franchises to come up are Southeastern and west coast. Under his new revenue support arrangements, taxpayers will top up revenues if growth targets are not met. What is the point of franchising if the operators do not take any risk? In return, the Government will want close financial monitoring of the operators. Do we really want civil servants in Marsham Street poring over train company balance sheets? Is there not enough DFT interference in the railway already?

Rail privatisation’s vested interests have spent more than 20 years trying to get franchising to work. Despite the Government changing and tweaking the system for them time after time, all they have done in return is to reveal ever more and new sorts of failure, while the public continue to suffer substandard services and ever-higher fares. Enough is enough. We need to change the system entirely.