West Coast Main Line

Debate between Lord Watts and Derek Twigg

Monday 17th September 2012 Westminster Hall

[Derek Twigg]

We would have to explore the consequences to the rest of the rail users on the system, but it should certainly be explored.

I return to a key issue that several hon. Members have pointed out. A cloud of controversy has surrounded the back-loading of the premium payments to the Government in the final few years of the franchise, whereas Virgin pledged more cumulative premiums to the Government for the first nine years of the franchise. I know the west coast line well, not just from travelling it but from my experiences as the rail Minister, and there were major problems on the west coast line during the early 2000s, for various reasons. At one stage, it was almost in a state of collapse, and the train services provided were pretty awful. Income dropped massively during those early years, for obvious reasons: people were not using the service. Because of the problems, they were using alternative transport such as cars, planes and so on. Income jumped in 2004 or 2005, and the timetable came out and so on. As the Minister will be aware, in 2009, a new timetable was introduced with weekend running and faster trains, which I mentioned. Did the bid take account of, or did Ministers ask questions about, that unusual situation at the beginning at the 2000s and its impact on longer-term predictions of income?

I assume that High Speed 2 will have a major impact on Euston, unless the Minister can tell me something different. Has any care been taken about that and the possible impact on the west coast?

The other question for the Minister relates to the GDP forecast on which the bids were based. Will the Minister confirm whether the bidders went along with the Government’s forecasts—a major failing in recent years—or a lower forecast? That will have an important impact on the bids. Projections are guess work, but I am not sure—we have not seen all the details, because we keep being told that they are confidential—whether the details actually add up. There is no doubt that the line has the potential for a great amount of growth. A point was made earlier about capacity and future investment. I am slightly sceptical about High Speed 2, because it has the potential to have an impact on necessary investment in the west coast main line.

[Mr Watts]

Does my hon. Friend agree that it seems that the First bid will deliver premium payments at the end of the contract, which will mean that the Government will have less money to invest in the west coast main line in the early years? Is there not an argument for doing the opposite, so that we can invest to deal with the congestion problems we will face while waiting for High Speed 2? Given the fact that no one knows whether HS2 will go ahead, is it not crucial to invest early rather than later?

[Derek Twigg]

As ever, my hon. Friend makes an important point. One key failure of the system—I hold my hands up as a former rail Minister—is in being unable to get investment into certain franchises to improve rolling stock, passenger experience, gating and so on. Some companies that have won franchises have decided not to invest, for various reasons that we do not have time to go into.

As I said, all politics is local. Runcorn, in my constituency, has benefited significantly from improvements put in place in the past 10 years or so. I am concerned that we will not build on those improvements and, because of problems with the franchise, take a step backwards. What has happened in recent years is remarkable. Virgin has achieved a good partnership with Halton borough council, which has been crucial in the reconstruction of Halton’s economy. The previous Government’s massive £8 billion investment in the west coast main line, after decades of underinvestment by other Governments, was crucial in achieving the improvements we now see, and Virgin became part of that achievement because it ran the franchise. We have seen massive improvements. From Runcorn, it now takes just under two hours to get to London, with the fastest train taking 1 hour 50 minutes.

Local Government Funding

Debate between Lord Watts and Derek Twigg

Tuesday 30th November 2010 Westminster Hall

[Mr Watts]

Most local councils and MPs will know that the voluntary sector is very much supported by local government. It cannot exist without funding and support from local government. I worry that not only will we have cuts in council services, but the voluntary sector will be hit as a result. I fear for the safety net of services that are now provided by the voluntary sector, but which will disappear if the cuts are made.

What are we trying to get from today’s debate? We would like an assurance from the Minister that any further cuts will be fair, that more help will be given to the most deprived parts of the country, rather than less, and that any cuts will be transparent so that it can be easily understood how the Government are making the changes to ensure that those in the most deprived communities get the most support. We would like an assurance that any cuts that are introduced will take into account the cuts that are already disadvantaging us. Any future cuts we face should take into account the fact that we have lost more than anyone else.

[Derek Twigg (Halton) (Lab)]

I congratulate my hon. Friend on securing the debate and on his excellent speech, in which he is trying to be fair to the Government. Halton, which has one of the most outstanding councils in the country, has already had £1.2 million cut from its education budget, compared with £600,000 from Cheshire East and Cheshire West, which are more affluent boroughs. It has lost massively and disproportionately as a result of the cancellation of the Building Schools for the Future programme and the education maintenance allowance cut, which has also hit other deprived communities. Given their track record, how can we expect the Government to be fair to deprived communities such as Halton, St Helens, Knowsley and others? The Government somehow believe that a 28% average cut will not hit the most vulnerable.

[Mr Watts]

My hon. Friend has made an excellent contribution. Our concern is not just about cuts in local government services, because we have already had cuts right across the board and face even bigger cuts in welfare. As the “Hard Times” document demonstrates, many of our communities are not in a position to fight back and will go to the wall. We are throwing those communities into abject poverty, which will have serious implications for our communities and the country as a whole.

I advise the Minister, before those draconian cuts are made, to take into account all the losses of grant that are taking place. A substantial amount of money is already being taken out of the local economy, which is having an impact on the private sector in our communities. Many of the shops, retailers and suppliers already face major problems. I spoke recently to a gentleman in the construction industry who told me that all his orders have now run out and that within six months he would be laying off hundreds of workers as a consequence. The economy cannot generate itself; it needs the support of the Government. That is why all our previous policies took into account deprivation and the need to spend.

What do we want? We certainly want any changes that are made to take into account the tax base and the ability of local government to raise money. We have already seen some scandals, such as the fact that Westminster council’s ability to raise millions of pounds every year from car parking charges is just ignored and not taken into account, which allows it to provide good services at a low cost to local taxpayers. It is a scandal that that has been allowed to continue for many years. I hope that when the Minister is looking at any change, he takes into account that some very wealthy councils are in a much better position than my authority and the SIGOMA authorities to deal with the levels of cuts that we have seen.