Oral Answers to Questions

Debate between Lord McLoughlin and Maria Eagle

Thursday 27th June 2013 Commons Chamber

[Mr McLoughlin]

I simply say to the hon. Lady: look at what has happened since privatisation—and, indeed, all the current franchises in operation were let by the last Government.

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

At the previous Transport questions the Minister of State said on East Coast that

“the involvement of the private sector means that we can increase, over and above the taxpayers’ money, the money that can be invested”.—[Official Report, 25 April 2013; Vol. 561, c. 995.]

Yet he has now admitted to me in a letter that the investment

“comes from an increase in the value of Network Rail’s regulatory asset base”,

and he says

“it is through private sector operation that we can best realise the benefits of the planned investment.”

Why does the Secretary of State not now just admit to the House that his Minister was wrong?

[Mr McLoughlin]

No, what my right hon. Friend said was absolutely correct. We are seeing huge investment in the railways and, as I said just a few moments ago, all the franchises currently in operation were let, and endorsed, by the last Government.

[Maria Eagle]

The fact is that the Secretary of State’s policy does not bring in any additional investment and is costing taxpayers, with millions of pounds paid to train companies to extend contracts so we can focus on East Coast. He claimed West Coast is paying more money back to the taxpayer than East Coast: it is not. He said Lord Adonis backs his plans: he does not. He says they are vital to bring in investment: they are not. Is it not the case that, one by one, his arguments for this costly and unnecessary privatisation have fallen away?

High Speed Rail (Preparation) Bill

Debate between Lord McLoughlin and Maria Eagle

Wednesday 26th June 2013 Commons Chamber

[Maria Eagle]

My goodness, I find myself in total agreement with the hon. Gentleman.

Despite the importance of this project, there has been a real lack of drive from Ministers—I am not necessarily talking about the Secretary of State—in taking the decisions and delivering the action needed to make it a reality. The former Labour Transport Secretary Lord Adonis set up HS2 Ltd as long ago as 2009. By August of the same year, he had already confirmed plans for a new north-south rail line because he was a high-speed Secretary of State. Nothing has moved anywhere near as fast at the Department for Transport since he left, except the revolving door that has meant I am facing my third Transport Secretary since the election. I hope very much that the Government reshuffle that is rumoured to be on the cards does not deliver yet another change. I am sure that the right hon. Gentleman will agree with me on that.

[Mr McLoughlin]

I hear what the hon. Lady says, but she should look at the average length of service of Labour Secretaries of State for Transport—they were also fairly rapid through those doors.

[Maria Eagle]

It is starting to worry me, when I contemplate my political future, that the average length across the parties of Secretaries of State for Transport appears to be somewhat on the short side. I hope that the right hon. Gentleman, while his Government are still in office, and I can increase the average length of time served.

Rail Franchising

Debate between Lord McLoughlin and Maria Eagle

Tuesday 26th March 2013 Commons Chamber

[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.

--- Later in debate ---

[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.

Oral Answers to Questions

Debate between Lord McLoughlin and Maria Eagle

Thursday 28th February 2013 Commons Chamber

[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?

High Speed Rail

Debate between Lord McLoughlin and Maria Eagle

Monday 28th January 2013 Commons Chamber

[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.

Oral Answers to Questions

Debate between Lord McLoughlin and Maria Eagle

Thursday 17th January 2013 Commons Chamber

[Mr Speaker]

As the Clerk has very originally observed, the Secretary of State has brought the matter back on track. We are grateful to him.

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

The Laidlaw report is clear about where the blame lies for the west coast franchise fiasco—it was Ministers who decided to carry out a botched reorganisation of the Department that left no one in charge of rail, cut one third of the Department’s staff and axed external audits of procurement. Is it not a disgrace that with the well over £45 million of taxpayers’ money that the Secretary of State admits down the drain, every single one of those responsible Ministers is either still in the Cabinet or has been promoted to it?

[Mr McLoughlin]

There are many ways in which one can read the report. The hon. Lady means to put her interpretation on it, and whatever I say will not change that interpretation. It is quite clear in the report that Ministers were not made aware of some of the problems, and if they had been referred up, different actions could have been taken.

[Maria Eagle]

If the Secretary of State will not accept what Laidlaw says about ministerial responsibility, perhaps he will accept the verdict of the Brown review, which is also clear about where the blame lies. It was the mistaken decision by Ministers to move to longer franchises as the rule, not the exception, and experiment with this risky new policy on the most complex franchise route. Instead of repeatedly blaming civil servants, who cannot answer back, when will Ministers finally take responsibility for this staggering waste of taxpayers’ money?

[Mr McLoughlin]

I think I have been very open with the House, and I have also commissioned inquiries. Initially the hon. Lady questioned their independence. I am glad that she is now happy to abide by those reports, which were clear that, had Ministers been warned, different actions could have been taken, which is exactly what the permanent secretary said before the Select Committee on Transport.

Rising Cost of Transport

Debate between Lord McLoughlin and Maria Eagle

Wednesday 9th January 2013 Commons Chamber

[Maria Eagle]

I want to make a little progress, but I might allow the hon. Gentleman to intervene a little later.

The pain is not over yet. This year is set to see even greater pressures from the rising cost of transport as the Government unveil their rail fares and ticketing review, with proposals for even higher fares at the times when most people need to travel. Ministers are to reform bus funding in a way that, deliberately it would seem, will penalise transport authorities that seek to regulate bus fares in the way they are regulated in London.

In contrast, as we set out in our motion, Labour would be taking steps now to ease the pressure on those who rely on our public transport system, standing up to the train and bus companies on behalf of commuters. We would be on the side of passengers, not vested interests.

Last September this House debated rail fares, and to the frustration of commuters—and many on the Government Benches, judging from what they told their local papers—the Prime Minister marched his MPs through the Lobby to oppose Labour’s motion to cap fare rises at 1% above inflation. Of course, Liberal Democrat MPs were marching alongside them. Yet within a month of Tory and Liberal Democrat MPs voting down Labour’s attempt to help commuters, we had a U-turn. On the eve of his party conference, the Prime Minister finally said that he agreed with Labour, and pledged to cap the annual fare rise at 1% above inflation. As commuters found when they returned to work this month, however, that was yet another broken promise from this Prime Minister and this Government, because fares were capped not at 1% above inflation, but at 9.2%. The reason the Prime Minister could not honour his pledge to commuters is clear: he was simply unable or unwilling to stand up to the vested interests in the private train companies. They had lobbied hard before the last election to get an agreement that the Conservative party would give back to them a power that had been taken away by the Labour Government when times got tough—the right to turn the annual cap on fare rises into an average, turning a cap of 1% above inflation into fare rises of as much as 9.2%.

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

I am surprised by what the hon. Lady says. She said that the previous Labour Government took that power away from the train operators when times got tough. Will she confirm that times got tough in 2010, which coincided with a general election?

[Maria Eagle]

No. There was a rule change that would have applied each and every year after the decision was made. Lord Adonis, who was in post at the time as Transport Secretary, took that decision and had been absolutely clear about it. If anybody in the House doubts that, they can read the Select Committee on Transport report on rail fares and franchises, published in July 2009. Lord Adonis told the Committee:

“The Government's intention is, therefore, that in future the cap should apply to individual regulated fares, not just to the average of each fares basket.”

He did not say “for one year” but “in future.” As Lord Adonis reaffirmed last year, when the issue came up:

“It was my firm intention to continue the policy for subsequent years, and I was mystified when…my successor”—

that is, the right hon. Member for Runnymede and Weybridge (Mr Hammond)—

“reinstated the fares flexibility. The only people who supported this change were the train companies.”

I do not therefore accept that the cap was a one-off or that it would not have continued into the future under a Labour Government.

How have the Government reacted? The Under-Secretary of State for Transport, the hon. Member for Lewes (Norman Baker), told passengers to stop complaining because fares are

“not nearly as expensive as is being presented”,

and then told peak-time commuters that they were paying for a premium service. I assure the Under-Secretary that many passengers do not feel that that describes their experience in getting to work in the morning on an overcrowded train. They do not agree with him that fares are not expensive.

Meanwhile, it was revealed that the hon. Gentleman’s colleague, the Minister of State, Department for Transport, the right hon. Member for Chelmsford (Mr Burns), was avoiding taking the train altogether, and had a chauffeur bill to and from his constituency—a commute that would take just half an hour by train on a season ticket that would cost taxpayers not £80,000 a year but £4,500 a year. Transport Ministers—

--- Later in debate ---

[Mr McLoughlin]

If I am still Secretary of State in 2017, I will have been the longest serving Transport Secretary. If my hon. Friend will forgive me, I have enough problems on my plate without making commitments for 2017. I look forward, however, to a Conservative Government making that decision—that is as far as I will go towards meeting that commitment at the moment.

The fact that we have capped fares to RPI plus 1% will benefit more than a quarter of a million annual season ticket holders by around £45 a year, and some commuters will be more than £200 better off over the two years. The motion before the House is confused in another way. It attacks the flexibility that allows operators to increase some regulated fares by more than RPI plus 1% if they cut other fares by an equal amount—for example, on Virgin Trains the Rugby to Euston season ticket has increased by almost 1% less than inflation. Today, the hon. Member for Garston and Halewood tried to claim that it was not the last Government who introduced that flexibility, or that such flexibility existed for more than one year. The changes to the agreement, which I can read to her, make it clear. The deed of amendment states:

“With effect from 00.00 on 1 January 2010 Schedule 5.5 of the Franchise Agreement will be amended as set out in the Appendix to the Deed…From 00.00 on 1 January 2011”.

Therefore, the agreement was amended for just one year.

[Maria Eagle]

Is the Secretary of State saying that Lord Adonis, whom he just praised, misled the Transport Committee when he said that he intended the agreement to go into the future and that it was a permanent change? Does he realise—he will find it out in 2014—that the year before an election, the limits of how far into the future one can go in the time of one’s successors are set by Whitehall and are different from those for the beginning of a Parliament?

[Mr McLoughlin]

I am not accusing the noble Lord of misleading anybody; I am informing the House of what he did as Secretary of State. He may have wished his changes to last longer, but they did not and were solely for that one year. Indeed, when the 5% flexibility was introduced in 2004 it led to some increases of 11% under the previous Labour Government in 2009 alone. That flexibility was suspended for one year—an election year.

However, that is not Labour policy now. How do we know? Well, let us look at Wales where this year under the Labour devolved Administration fares went up by RPI plus 1%, with flexibility of 5%.

Oral Answers to Questions

Debate between Lord McLoughlin and Maria Eagle

Thursday 29th November 2012 Commons Chamber

[Mr McLoughlin]

The truth of the matter is that a number of airports are now owned by different companies as a result of the changes that have been made, and they are coming forward with their own proposals, which will add to the approach taken by the Davies commission. It will certainly not be short of representations of various sorts, including, I imagine, from my right hon. Friend.

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

The Prime Minister came back from his summer holiday saying that he was

“more determined than ever to cut through the dither that holds this country back.”

Having dithered for a year before finally accepting our suggestion of an independent commission on aviation, the Government have now cynically set a time scale that pushes decisions beyond the next election. Will the Secretary of State finally listen to all those, including the CBI and the British Chambers of Commerce, who want the national interest to be put before party management, accelerate the time scale, and ask Sir Howard Davies to produce his final report by the end of next year?

[Mr McLoughlin]

In all honesty, the Labour party has also changed its position on what should happen at Heathrow. I would have hoped that the composition of the commission attracted widespread support. Indeed, one of its members is an adviser to the Leader of the Opposition on infrastructure projects. It is right that we get the right answer and build consensus on what we are trying to do.

[Maria Eagle]

Business will be bitterly disappointed by that answer. It is no wonder the Mayor of London has described his own Government’s approach to aviation as

“a policy of utter inertia”,

“glacial” and a “fudgerama”. HS2, Thameslink, franchising, investment promised in the autumn statement a year ago: all are running late. The Secretary of State is now presiding over the department for dither and delay. When is he going to get a grip?

Oral Answers to Questions

Debate between Lord McLoughlin and Maria Eagle

Thursday 18th October 2012 Commons Chamber

[Mr McLoughlin]

I assure my hon. Friend that I asked those questions rigorously in the Department and I have been assured that this was a wholly different process. As I have said, I am awaiting the outcome of the two inquiries that I have set up.

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

Will the Secretary of State admit that taxpayers are set to be stung for far more than the £40 million he is paying back to bidders for the west coast franchise, because what he has not included in that figure is the cost of paying back bidders for the suspended Great Western, Essex Thameside and Thameslink franchises? Will he now come clean to taxpayers about exactly how much of their money will be poured down the drain as a result of his franchising fiasco?

[Mr McLoughlin]

I have given the figures that are available to the House. The other contracts to which the hon. Lady refers are on hold—they have not been let.

[Maria Eagle]

Is it not the truth that the cost to taxpayers is likely to be tens of millions of pounds more by the time the Secretary of State has Britain’s rail services back on track? He will hand millions over to private train companies; millions will be spent running three competitions for this franchise when he should have been running only one; and millions more will be lost if companies decide to sue the Government for the losses that his Department’s incompetence have caused them. Instead of the Department for Transport’s own board investigating itself, do not taxpayers deserve a truly independent inquiry into what went wrong and who was to blame for so much of their money being poured down the drain?

[Mr McLoughlin]

When I was told about this incident and the mistakes that were made, I ordered two immediate inquiries. I wanted to get to the bottom of it as quickly as possible, and that is what I have done. I am sure that we will not be short of a number of inquiries, which will take place subsequent to the Laidlaw and Richard Brown inquiries. I expect that the Public Accounts Committee will want to look at the issue.

West Coast Main Line

Debate between Lord McLoughlin and Maria Eagle

Monday 15th October 2012 Commons Chamber

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

I thank the right hon. Gentleman for advanced view of the statement. I well understand why, when he announced this embarrassing debacle earlier this month, he did so at one minute past midnight, when he hoped everybody would be asleep, because this is yet another staggering example of the monumental incompetence of this shambles of a Government. It is a failure of policy, a failure of process, a failure of ministerial oversight and a failure of ministerial leadership.

The Government’s new franchising policy, which requires risks to be calculated 15 years into the future, was designed by the current Secretary of State for Northern Ireland, announced by the current Secretary of State for Defence and implemented by the current Secretary of State for International Development; and it has shamefully been left to the former Chief Whip to try and deflect the blame for it on to three officials in the Department for Transport. It is just as well it has not been left to the current Chief Whip to deal with, or he would probably have blamed it on the police at the gates of Downing street.

The reality is that Ministers are responsible. It was Ministers who redesigned franchising policy to make it much more difficult to calculate which bidder should win. It was Ministers who slashed faster than any other Department the expertise and staffing available to carry out the task, including apparently making the director of procurement, the director of rail strategy and the director of rail contracts’ posts redundant along with those of senior finance staff; and it was Ministers who reportedly cancelled an external audit that was routinely done in other competitions to check the outcome of the franchise award ahead of its announcement.

It is incredible that Minsters continue to maintain that these problems only came to light late in the day, just before they made that midnight announcement less than two weeks ago. We know that Ministers were sent a report warning of precisely the problems that led to the competition being cancelled five days before the contract was awarded. Today was the opportunity for the new Secretary of State to begin to put things right, yet he has failed his first test and announced a way forward that adds to the chaos and confusion and risks even greater costs to taxpayers, replacing one franchise competition with three, opening up the prospect of three owners in three years, increasing the risk of further legal action and further costs to taxpayers, and adding to the uncertainty for passengers and staff.

Can the Secretary of State update the House on the likely final cost to taxpayers of the Government’s failure on franchising? If reimbursing bidders for the west coast will cost £40 million, what will be the costs of the stalled Great Western, Essex Thameside and Thameslink franchises? What legal advice did he receive on his decision to extend Virgin’s contract? Specifically, what advice has he received on EU competition law, procurement law and the impact on the fairness of future competitions for the franchise? In the light of this debacle, does he agree that it makes sense to maintain a public sector rail company that is equipped to step in at short notice in future, as well as providing a useful comparator? Will he therefore abandon the planned privatisation of the east coast service, which is delivering nearly £200 million back to taxpayers every year, which is profit that in future will be shared with shareholders?

Can the Secretary of State not see that it is completely inappropriate for a member of his own Department’s board, no matter what his other qualities are, to carry out an investigation that has to look at the decisions taken or approved by other members of that board, including Ministers? Will the Secretary of State think again and make his review truly independent? What impact has the 37% turnover of senior civil servants in the restructuring of the Department in the last two years had on its capability to conduct competitions such as this? As the Secretary of State mentioned his fares U-turn, will he now agree to make the train companies apply the cap to every route, so that passengers do not find, as they did last year, that fares may still rise by up to 5% above the cap?

This was a franchise fiasco made by Ministers—a policy scribbled on the back of an envelope in opposition; cuts that go too far, too fast, implemented in government. The result is chaos across the rail industry and tens of millions of pounds of taxpayers’ money down the drain—the direct consequence of decisions taken by Ministers. Now we have a proposal for an independent review that is not independent at all, while the Secretary of State’s solution to the west coast franchise fiasco is a decision to do it all over again—that is, twice in just two years. What an appalling waste of taxpayers’ money! What a shambles from this incompetent Government!

[Mr McLoughlin]

I thank the hon. Lady for her reasoned response to my statement.

The last Labour Secretary of State for Transport was not a Member of this House, but he said some very interesting things. Lord Adonis said:

“Ten year franchises, with the possibility of longer contracts should bidders make sensible and affordable proposals, will allow operators to invest and suggest new innovations.”

At that point the Labour party increased the minimum for franchises to run to 10 years, with an option of 22 years. There is therefore a long-standing position that longer franchises can work, including to the benefit of passengers, which it is important they should do.

The hon. Lady mentioned a number of points. One of the things that I was keen to do, on hearing of the problems we were facing in the Department, was to get to the answers as quickly as possible. That is why I set up the inquiries as quickly as I possibly could. I believe that Mr Laidlaw is perfectly capable of bringing his expertise to bear and showing us—[Interruption.] The hon. Lady ought to wait until he has done the inquiry before prejudging it, because at least we have taken the action to get the inquiry under way. I think that is the right way to go.

The hon. Lady talks about the reduction in members of staff in the Department. There has indeed been a reduction. Bearing in mind the economic climate in which we found ourselves, that was absolutely necessary and I make no apologies whatever for that. I am determined to see that the provision of services to the customers who use the west coast main line—of which there are many, with many constituencies involved—is carried out continuously, and that is why I believe Virgin are the best people to carry that forward.

Rail Fares

Debate between Lord McLoughlin and Maria Eagle

Wednesday 5th September 2012 Commons Chamber

[Mr McLoughlin]

I shall come on to some of the things we are going to do to improve the railway line that I use, which were announced before I became Secretary of State. I am very pleased about them, one of which is electrification. The last Government had a particularly poor record on that. There was a change in the franchise owners during the period of the last Government and certain changes were made to the service on that line.

Soaring demand meant that our ageing rail network was struggling to cope. There are now many more people travelling on the railways than at any time since 1929, but on a much smaller system. What does that mean? It means more overcrowding, more standing on trains, and rail consumers demanding a better service. We had to find a way to invest in the railway to support the economic recovery and to deliver the quality of service that passengers have the right to expect. That was the reality we faced, and we are meeting it head on by investing in the biggest rail modernisation programme since the Victorian era, while at the same time reforming the railways and reducing costs.

[Maria Eagle]

Does the right hon. Gentleman accept that during this Parliament and this spending review period, his Government have cut investment in the rail industry? Yes, they have announced a lot of investment for the next Parliament, in control period 5, which will go ahead some time in the future, but in this Parliament investment and infrastructure have been cut.

[Mr McLoughlin]

I was just coming on to say that this July, we announced £16 billion of public support for the existing rail network between 2014 and 2019—I expect 2014 to be during this particular Parliament—which will support over £9 billion of enhancements, meaning more services, more seats and more capacity, especially for commuters to our largest cities. The tap cannot simply be turned on as far as the rail industry is concerned. Passengers will also benefit from the completion of the northern hub in Manchester, £240 million of investment in capacity and connection improvements on the east coast main line, and a further £300 million for high-value, small-scale schemes in other parts of the country.

We are delivering a rolling programme of rail electrification on the Great Western main line to Swansea, on the valley lines into Cardiff and on the trans-Pennine route connecting Liverpool, Manchester, Leeds and York. We are creating a new “electric spine” for freight and passenger services stretching from the south coast to the east and west midlands and south Yorkshire.