Transport for London: Financial Settlement

Lord Moylan Excerpts

Tuesday 2nd March 2021 Lords Chamber

Asked by

[Lord Moylan]

To ask Her Majesty’s Government what progress they have made in discussions with Transport for London on a financial settlement (1) for 2021/22, and (2) beyond.

[The Parliamentary Under-Secretary of State, Department for Transport (Baroness Vere of Norbiton) (Con)]

My Lords, the Government are committed to providing Transport for London with a financial deal that is sustainable, supports London’s recovery and keeps the capital moving. Any deal must be fair to the UK tax- payer. On 11 January, TfL provided us with a financial sustainability plan, which sets out its plans to achieve financial sustainability by April 2023. The Government hope to announce further Covid-related financial support for TfL shortly.

[Lord Moylan (Con)]

My Lords, TfL has suffered a double blow to its income from the pandemic and from years of irresponsible fare setting by the Mayor of London. While my noble friend grapples with that temporary challenge, will she also bear in mind that a railway needs steady capital investment too, and that there are parts of London Underground operating with signalling and rolling stock that is over 50 years old and is creaking at the seams. Will she, in support of the Government’s infrastructure objectives, seek to ensure that TfL is allowed a medium-term investment programme—however modest—to address these problems?

[Baroness Vere of Norbiton (Con)]

My noble friend is quite right: there have been some quite interesting fare increases—or not—from the mayor over recent years. We estimate that over the past four years his fares freeze has cost £640 million, which could otherwise have been spent on capital expenditure. But, as my noble friend knows, transport in London is devolved and it is up to the mayor and TfL to assess the merits of capital projects that they might want to invest in. However, it is absolutely clear that the Mayor of London must set a robust budget, demonstrate that TfL is on a clear path to achieving financial sustainability, and prioritise his capital expenditure. He will have to make difficult choices.

Rail Fares: Flexi-season Tickets

Lord Moylan Excerpts

Thursday 4th February 2021 Lords Chamber

[Baroness Vere of Norbiton (Con)]

The noble Baroness is quite right; the one thing we are going to have to do to get people back on to the railways—indeed, the public transport system as a whole—is to improve passenger confidence in the system. One way to do that is to be at the forefront of being able to provide the most up-to-date air filtration systems and secure the best enhanced cleaning contracts.

[Lord Moylan (Con)]

My Lords, noble Lords may have wonderful, imaginative ideas for playing around with fares, and there may indeed be a commercial case for flexible season tickets, but does my noble friend agree that the future of the railways is best secured if they maximise their own revenues and that the fundamental purpose of commuter fares and season tickets must therefore always be, as with airlines, to increase yields to the railways, thus saving expense for the taxpayer?

[Baroness Vere of Norbiton (Con)]

I somewhat agree with my noble friend in that, if this were being done in purely commercial terms, that would be the case, and we certainly want to minimise the amount of subsidy from the taxpayer where appropriate. However, the state might also want to intervene for other reasons and use pricing levers; for example, to encourage modal shift and get people out of their cars and on to the rail, particularly for certain types of journeys, and that might include commuting.

Heathrow Airport Expansion

Lord Moylan Excerpts

Thursday 17th December 2020 Lords Chamber

[Baroness Vere of Norbiton (Con)]

The noble Lord is quite right that the Supreme Court did not give the go-ahead to anything; it simply ruled that the ANPS is lawful. What is the case is that expansion, if Heathrow Airport Ltd decides to do it, would move to the next step, which is the development consent order—that is, the planning approval that would need to happen, which itself is a fairly lengthy process.

[Lord Moylan (Con)]

My Lords, even with two fully operating runways, Heathrow imposes an intolerable noise burden on local communities, well in excess of safe WHO standards. With a third runway, this will only get worse. In the light of that, may I tease my noble friend into saying what thought the Government might have given recently to the prospect of a new hub airport, located well away from human habitation to the east of the capital?

[Baroness Vere of Norbiton (Con)]

My Lords, it is Christmas, but I will not be teased. The noble Lord raises the question of noise and it is a good point. I have already noted that aircraft are quieter than they used to be, but this is an appropriate time to mention airspace modernisation. This programme, which will happen over the next few years, will make sure that aircraft can land and take off on a steeper trajectory, which should have noise benefits around airports.

Railways: Fare Structures

Lord Moylan Excerpts

Tuesday 17th November 2020 Lords Chamber

[Baroness Vere of Norbiton (Con)]

I am sure that the noble Baroness will understand that I could not possibly comment on rumours, but I refer her to the answer that I just gave to the noble Lord, Lord Snape, about the Government’s plans for any increase in regulated rail fares.

[Lord Moylan (Con)]

My Lords, public transport must provide sufficient capacity to meet demand in peak periods and so has excess capacity at other times of the day. If public transport is to maximise its own fares revenue and avoid dependency on the taxpayer, does my noble friend the Minister agree that operators should be allowed to offer a broad and flexible range of non-regulated fares so as to recognise variations in demand, and that a move to a rigid and simple fares regime is likely to force unnecessary increases in many fares?

[Baroness Vere of Norbiton (Con)]

My Lords, fares revenue remains a core component of funding for the railways, and I agree that it is important that train operators manage their businesses in line with taxpayers’ interests. Any proposals for changes to fare structures will, of course, be discussed with train-operating companies to ensure that they deliver for both passengers and taxpayers.