Oral Answers to Questions

Debate between Lord McLoughlin and Sheila Gilmore

Thursday 23rd October 2014 Commons Chamber

[Sheila Gilmore (Edinburgh East) (Lab)]

7. How many of the shortlisted bidders for the inter-city east coast franchise are wholly or partly foreign-owned.

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

Three bidding companies are taking part in the competition for the inter-city east coast franchise, one of which is partly foreign-owned.

[Sheila Gilmore]

When I last asked the Transport Secretary about this issue on 8 May, he said that the reason Directly Operated Railways would be at a disadvantage and therefore could not take part in the competition was that it was funded through the taxpayer, yet both parts of Keolis-Eurostar are currently majority-owned by the French and UK Governments. What is it about that state-owned company that gives it an edge over our own state-owned company?

[Mr McLoughlin]

I just remember and call to mind the words of the last Transport Secretary under the previous Labour Government, who said that he did

“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 with those words, which he used when he was last in this office and had responsibility for this issue.

Oral Answers to Questions

Debate between Lord McLoughlin and Sheila Gilmore

Thursday 8th May 2014 Commons Chamber

[Sheila Gilmore (Edinburgh East) (Lab)]

T2. East Coast’s current operator, Directly Operated Railways, was barred from bidding for the east coast franchise. The Secretary of State presumably welcomes the bid from Eurostar-Keolis, which is largely owned by French state railways. Is it not time to change policy and to allow Directly Operated Railways to bid for franchises?

[Mr McLoughlin]

There are a number of reasons why it would not be right to allow that to happen, not least because it would be funded directly through the taxpayer. That would put Directly Operated Railways at a great disadvantage compared with other companies in the private sector. The east coast and west coast franchises cannot be compared as they are very different, not least because, at the moment, East Coast runs 155 services a day compared with the 324 services on the west coast line.

High-speed Rail

Debate between Lord McLoughlin and Sheila Gilmore

Monday 24th March 2014 Commons Chamber

[Mr McLoughlin]

Indeed I will. We are committed to providing brand new rolling stock for the east coast main line: one of the biggest orders placed for the railways has been signed off by the Government. I am delighted we have done that.

[Sheila Gilmore (Edinburgh East) (Lab)]

Sir David Higgins stresses the importance of existing lines and HS2 working together. Will the Secretary of State reconsider the current plans for trains from Scotland to Birmingham and London to bypass Manchester and Leeds? Is this an opportunity to reconsider the possibility of linking them up?

[Mr McLoughlin]

It is essential that all these suggestions are considered. HS2 will fundamentally change capacity on our railway lines. It will give us many more opportunities not just for passenger numbers, but for more freight. In the past 10 years, there has been a 60% increase in freight. The issue of capacity is what is holding back a further increase. The west coast main line is the busiest railway line in Europe. An increase in capacity will free up a lot of other services and opportunities.

Flooding: Transport Disruption

Debate between Lord McLoughlin and Sheila Gilmore

Thursday 13th February 2014 Commons Chamber

[Mr McLoughlin]

I understand the points my hon. Friend is making. There are a few things we need to do. First and foremost, we need to reassure people that the south-west is open for business and that the road network overall is working well. This morning, I had a meeting with the country’s main coach operators about their laying on extra services, which they are doing, and as we approach next week’s half-term holiday, and the Easter break as well, people and businesses in the south-west want to get the message out clearly that they are open for business and that the south-west is not a closed area; and certainly the road network gives us that option.

On alternative routes, I want to see the Dawlish route reconnected as soon as possible—Network Rail estimates it will take six weeks, once it starts construction properly, to re-establish the line—but my hon. Friend is right that we should look at the lines that have been closed. It is not the fault of this Government, or even the last Government, that they are closed. Since 1965, successive Governments have seen development take place over some of these lines.

[Sheila Gilmore (Edinburgh East) (Lab)]

I am sure that the Secretary of State will join me in praising the work of East Coast staff who dealt with customers stranded on the Yorkshire moors last night.

When the Secretary of State and his team give figures on the late running of East Coast trains, will they attempt to differentiate in respect of the weather problems over the past two years—they have not occurred only this month—and will they not blame East Coast for them?

[Mr McLoughlin]

There can be many reasons for train delays, and sometimes they are completely outside the control of Network Rail or the rail operators. I readily accept that point. Some of the problems faced by operators, even leaving aside exceptional storms, are completely outside their control.

Oral Answers to Questions

Debate between Lord McLoughlin and Sheila Gilmore

Thursday 12th September 2013 Commons Chamber

[Mr McLoughlin]

I am grateful for my hon. Friend’s welcome for our planned investment. I will write to him about the more detailed question of the timetable so that he will be well aware of it.

[Sheila Gilmore (Edinburgh East) (Lab)]

I want to take the railways Minister back to his earlier statement about the east coast franchise. Could he be precise about the innovations that I and my fellow travellers will see if the process goes ahead?

[Mr McLoughlin]

We will see, when we make the invitations to tender, exactly what proposals come back from rail companies, but the simple fact is that this Government—and the previous Government, for that matter—have seen huge growth in our railways as a result of the innovation of the train operating companies. This is not new; it was well established under the previous Government and continues to be under this one.

Oral Answers to Questions

Debate between Lord McLoughlin and Sheila Gilmore

Thursday 27th June 2013 Commons Chamber

[Mr McLoughlin]

I welcome Hitachi’s investment at the Newton Aycliffe site, following a £4.9 billion contract that it has already won for refurbishment of IEP trains. The Department is currently considering other proposals. Huge investment is being made in all our railways, partly as a result of the huge increase in the number of people who use them.

[Sheila Gilmore (Edinburgh East) (Lab)]

Q12. During a debate in the House last Thursday, the Minister of State acknowledged that investment in infrastructure and rolling stock for East Coast would be financed by the taxpayer, but that there would also be some private investment. Perhaps—

[Sheila Gilmore]

What additional investment does the Secretary of State see privatisation bringing?

[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.

Oral Answers to Questions

Debate between Lord McLoughlin and Sheila Gilmore

Thursday 25th April 2013 Commons Chamber

[Sheila Gilmore (Edinburgh East) (Lab)]

In answer to an earlier question from my hon. Friend the Member for Rotherham (Sarah Champion), the Secretary of State said that he made decisions based on evidence. Why is that not being applied in relation to the east coast franchising, given that we have had two failures of the private sector and now experience of a good service?

[Mr McLoughlin]

The evidence was supported by the fact that we have seen huge growth in the railways since privatisation 20 years ago. Since then, there have been 13 years of Labour Government, and they did not reverse it—in fact, they enhanced and pushed forward the franchising. The last Labour Secretary of State said that franchising was a good thing. I believe he was right and that passengers benefit from it.

Rising Cost of Transport

Debate between Lord McLoughlin and Sheila Gilmore

Wednesday 9th January 2013 Commons Chamber

[Mr McLoughlin]

I am coming on to say something about bus companies, but I will not comment on individual contracts that are being negotiated, as it would be wholly wrong of me to do so.

I want passengers to get the best deal from a ticket system that is easy to understand, and that is why we have set up the fare and ticketing review. This is not about higher fares; it is about simpler fares. It is not about catching out passengers who have to travel when trains are busiest, but getting good deals for people when there are seats to spare. Taxpayers, whether they use trains or not, all contribute to the cost of running the railway. I know that when people face big bills and tough times they really feel the pressure of higher fares. That is why we are looking at ideas such as smart ticketing and more flexible season tickets, so that they only have to pay when they actually need to travel. The way we work is changing and it is right that tickets change too.

This Government are on the side of passengers, whether they use trains or buses. That is why we have protected free bus travel for pensioners and are putting in place a level playing field so that operators can compete to bring fares down. The basic truth, however, is that the cost of bus travel has risen, including during the decade to 2010 under the Labour Government, and that is mainly due to higher operator costs, such as fuel.

[Sheila Gilmore (Edinburgh East) (Lab)]

Will the Secretary of State give way?

[Mr McLoughlin]

I am sorry, but I must make some progress.

From the first day of the coalition Government, our priority has been to tackle the deficit that we inherited, to rebalance our economy, to get people back to work and to boost growth. Transport plays a key part in that process. This Government have capped fare rises. We are getting the investment in, tackling overcrowding, increasing seats and services, and delivering High Speed 2. It is the right deal for passengers and the right deal for Britain’s future.

West Coast Main Line

Debate between Lord McLoughlin and Sheila Gilmore

Monday 15th October 2012 Commons Chamber

[Mr McLoughlin]

I understand that the hon. Lady wants improvements made to her station and I will consider carefully what she has said, but I am not sure that there is any spare money in the Department.

[Sheila Gilmore (Edinburgh East) (Lab)]

Will the Secretary of State ensure that the Brown inquiry does not just tinker with franchising but considers other options? We have heard about the recent option on the east coast main line, but another is the concession process that was used for London Overground. Will the inquiry be able to consider that?

[Mr McLoughlin]

I will not tell the inquiry what to do. I have published the terms of reference and put them in the Library earlier today. They are comprehensive.