Oral Answers to Questions

Lord McLoughlin Excerpts

Thursday 24th May 2018 Commons Chamber

[Mr Speaker]

I can only imagine that it was a noise of approval. Who knows? It may be a divisible proposition, but there we go.

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

One very important aspect of bus services is the role played by community services, particularly in rural areas. There is great concern about the consultation that the Department are currently undertaking. When can we expect some final announcements?

[Ms Ghani]

The Under-Secretary of State for Transport, my hon. Friend the Member for Hereford and South Herefordshire (Jesse Norman), is overseeing the consultation, and he will make an announcement before the summer. The Department understands the importance of community transport services, which not only tackle isolation but enable people who would not otherwise have access to transport to keep appointments. I understand their importance particularly well, because I represent a rural constituency. The Department is very concerned about the issue, and we will do what we can to help.

Community Transport

Lord McLoughlin Excerpts

Thursday 10th May 2018 Westminster Hall

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

I will make two distinct points, because of the pressure from the amount of people who want to speak. I understand why the Minister felt he had to do this, but I hope that after listening to the debate—to the words of the Chair of the Select Committee, the hon. Member for Nottingham South (Lilian Greenwood), and the leader of the Liberals, the right hon. Member for Twickenham (Sir Vince Cable)—he takes on board the very strong feelings, across parties, on this issue.

I first tabled a private Member’s Bill to get bus-fuel duty rebate for community transport back in 1999, because before then the sector was not getting the same kind of rebate as the commercial sector, and I thought that was unfair. When I introduced that private Member’s Bill, the Government prevented it from going any further, but in due course they did bring in a BSOG—bus service operators grant—arrangement for community transport.

When I was Secretary of State for Transport I was fortunate enough to set up a scheme to help the smaller community transport agencies to get new buses. They fulfil a vital role, particularly in rural areas, but also in wider urban areas. I have three community transport agencies in my constituency. To give some idea of the work that Bakewell and Eyam Community Transport did over the past year, it has told me:

“Over the last 12 months we transported over 86,000 passengers which included 8270 wheelchair users and 3525 health related journeys”.

The agency served more than 397 groups, including Age UK, the scouts, Church groups and Women’s Institutes—the list goes on. Bakewell and Eyam Community Transport fulfils a very important role in rural areas.

I am concerned that the proposals have made a number of charitable organisations unnecessarily concerned that they will not be able to continue that work. I would like to see more flexibility. The Minister needs to reflect on the debate, as I am sure he will, and look at what he can do to assist community transport.

[Mr Bernard Jenkin (Harwich and North Essex) (Con)]

As my right hon. and learned Friend the Member for Rushcliffe (Mr Clarke) said, this is just a matter of law. The new regulation is either a correct implementation of European Union law, or it is not. Which is it?

[Sir Patrick McLoughlin]

I will leave that to the Minister to answer; I am sure he will want to answer that. I fear that this issue has been around for some time. It is obviously everybody’s view, including that of other speakers, that the Government have gone too far in responding to what was European Union regulation. After all, the Government believe in deregulating, not excessive regulation. Perhaps the Minister would like to tell us about all the regulations he will get rid of, because for every regulation he introduces he is supposed to get rid of two.

As we can see, the proposals would lead to a lot of extra regulations that should not be introduced. I hope that the Minister takes note of the debate, and comes forward with a solution that allows community transport to carry on doing the vital job it has done, and that removes the question mark that many community transport agencies feel hangs over them at the moment.

Oral Answers to Questions

Lord McLoughlin Excerpts

Thursday 1st March 2018 Commons Chamber

[Jesse Norman]

It is the Rhondda valley by proxy. We continue to press the German Government hard on the issue and regard the behaviour of Volkswagen as unacceptable. We are greatly improving the emissions regime, toughening up the testing regime and taking active steps to penalise the use of defeat devices.

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

16. What estimate his Department has made of the amount that will be invested in transport infrastructure in Derbyshire and Nottinghamshire between 2010 and 2020.

[The Parliamentary Under-Secretary of State for Transport (Ms Nusrat Ghani)]

In the east midlands, almost £7 billion has been spent on transport since 2010, improving connectivity, shortening journey times, reducing congestion and transporting people, ideas and goods. In Derbyshire and Nottinghamshire, that has included £371 million from Government for extensions to the Nottingham tram system, and £4.5 million for the new station at Ilkeston.

[Sir Patrick McLoughlin]

Indeed, the Government have a proud record on transport infrastructure. More transport infrastructure has been planned in Derbyshire and Nottinghamshire over these 10 years than ever before. I welcome the proposals for the A38 and smart motorways, and for the Derby and Nottingham stations. May I suggest to my hon. Friend that we also consider smaller projects, which will make vast improvements, and may I put in a bid for the Ashbourne bypass?

[Ms Ghani]

My hon. Friend has been a great advocate of transport locally and is obviously an expert in the field, as a previous Minister in the Department. He is absolutely right that we are investing in the biggest upgrade of the midland main line since it was completed in 1870. It is, however, for Derbyshire County Council to assess the need for that particular project in Ashbourne, and to decide whether to work on plans to deliver it. If the council applies for appropriate Government funding, we would be pleased to consider its bid.

High Speed Rail (West Midlands - Crewe) Bill

Lord McLoughlin Excerpts

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

[Chris Grayling]

My hon. Friend is right, and I am delighted that Siemens has been shortlisted for that work. I want as much of the work as possible to be done in the United Kingdom, so that we can develop that skills footprint, developing those young apprentices and developing the engineering skills that we need for the future. That must happen throughout the United Kingdom: south-west, north-east, Scotland, Northern Ireland, Wales, south-east, midlands, the north and East Anglia. I want to see jobs and opportunities for British businesses, and businesses based in Britain.

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

Does my right hon. Friend agree that we have Crossrail as a model? It is being finalised this year, and will be operating next year. That project was built on the use of suppliers in the United Kingdom, and the spread of its supply network throughout the UK. Although it was a London project, many parts of the country have benefited from it. What HS2 is doing is the natural follow-through from what Crossrail did.

[Chris Grayling]

Absolutely. Crossrail may be a project for transport in London, but it is also a project for engineering and industry in the United Kingdom as a whole. It brings benefits to all parts of the United Kingdom, and HS2 will bring benefits to all parts of the United Kingdom. Northern Powerhouse Rail, when it is built, will bring benefits in southern as well as northern England, and, indeed, throughout the United Kingdom. The more that we invest in these projects, the more economic benefits we will deliver across the UK.

--- Later in debate ---

[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.

[Christian Matheson (City of Chester) (Lab)]

rose—

[Sir Patrick McLoughlin]

If the hon. Gentleman will allow me, I will make some progress.

It is right to say that we have seen a renaissance on our railways since privatisation, and that renaissance continued under the last Labour Government. Indeed, in their 13 years in government, they did not seek to change the franchising at all. They felt that that was the best way to operate the railways. We had the private sector and the public sector involved, and we saw our railways improve tremendously. If we get to a situation—I hope we do not—of the railways going back to a fully nationalised body, what happened in the ’60s and ’70s will happen again. Rail was always at the back of the queue for investment. Hospitals and education took priority; the railways were left without any priority whatsoever. There is no doubt in my mind that privatisation has led to the rejuvenation of the rail industry, and so much so that passenger numbers have increased from something like 700 million to some 1.6 billion, which speaks for itself.

I am pleased that the Bill has been introduced. David Higgins recommended that we should try to bring the investment and benefits of HS2 more quickly to the north. Should this Bill get its Second Reading today, it is worth remembering that we will see high-speed services to Crewe by 2027. In infrastructure terms, and given the necessary planning, that is not that far away, so I congratulate my right hon. Friend the Secretary of State on bringing the Bill forward.

I know that the Government are well aware of this, but I want to talk about the importance of continuing to develop skills in engineering. The National College for High Speed Rail, which is based in Doncaster and Birmingham, will enable people to get the engineering skills that are so important. All that follows on from the remarkable Crossrail project, which will start to open to the public later this year. We saw such skills in the television programmes covering its development across London.

This important Bill is about capacity. There are those who say that the Department for Transport and its Secretaries of State have changed their mind and that they talk about capacity more than speed, but the very first HS2 document that was published referred to capacity, too. The west coast main line is one of the busiest lines in Europe, if not the busiest. We need a massive injection of infrastructure, and this Bill is the answer

[Mr Jim Cunningham]

The right hon. Gentleman is quite right that we want to speed things up and that the west coast main line is very busy, but to go back to the point that I made to my hon. Friend the Member for Middlesbrough (Andy McDonald), what are we going to do about the bottlenecks? There were cancellations yesterday, and there only has to be one incident for everything to stop. That affects freight as much as anything else.

[Sir Patrick McLoughlin]

I completely accept that, but the simple fact is that that is one of the reasons for the new line. We want resilience, alternatives and something that is much more modern. We have spent a fortune on upgrading the west coast main line from Birmingham up to Manchester, although I understand that we did not carry out any upgrade south of Rugby. The upgrade was essential, and if the then Government had been a bit more forward thinking, they could have built a new high-speed line then rather than doing an upgrade.

An upgrade has been undertaken, however, and it is very visible near Lichfield, for example, where the bridge has been changed as the line goes through Armitage to accommodate four tracks instead of two. There has been a huge amount of investment in the west coast main line, and that answers the question asked by the hon. Member for Coventry South (Mr Cunningham) with regard to the need for greater capacity, more alternatives, and the modern engineering that we will get from HS2. I cannot remember the exact year, but there was a time a few years ago when every single railway line in the country had problems because of weather disruption apart from HS1, which was built to a high specification with modern engineering.

[Anna Soubry]

I am grateful to my right hon. Friend for giving way and for his excellent speech. Does he agree that capacity and speed are not mutually exclusive? Not only will we get a world-class new line to deliver new capacity, but we are improving our existing lines. With that in mind, will he confirm how much is about to be invested in the new signalling programme in Derby, a place he knows very well?

--- Later in debate ---

[Sir Patrick McLoughlin]

More than £200 million is being spent in Derby on re-signalling and a new platform to ensure that London trains no longer have to cross the lines going to other parts of the country, thereby enabling those trains to go straight through on the main line. That is the kind of investment that is already happening in our railways up and down the country. My right hon. Friend the Secretary of State has been successful in securing extra investment not just for HS2, but for all the other railway lines that so badly need the kind of upgrades that we will see in Derby. We will no doubt complain when the station has to be closed for a period over the summer, but such a thing is inevitable if we are to achieve such overall benefit. We saw something similar just a few years ago at Nottingham station.

[Mr Seely]

My right hon. Friend speaks eloquently about busyness, capacity and bottlenecks on the west coast main line. Does he have anything to say about the south and south-west rail routes into London? Those routes are busier and have more capacity problems than many northern routes, but they will be unaffected by HS2 and might have their funding skewed because of it.

[Sir Patrick McLoughlin]

I do not think that that is the case, but there is nobody better than the Secretary of State to answer those points. The tremendous investment at Reading station has improved the whole network to the south-west. The investment at that station alone was in the region of £800 million or £900 million. Extra flyovers were put in to improve capacity down to the south-west.

[Rachel Maclean (Redditch) (Con)]

The improvement in overall capacity is brilliant for the people we represent in towns such as Redditch that are outside the major conurbations. The improved capacity will create an opportunity for more services from Redditch to Birmingham for commuting and jobs.

[Sir Patrick McLoughlin]

My hon. Friend is right that HS2 will free up a lot of capacity that is currently used not for local services, but for services from London to Birmingham and on to Manchester. That is one of the answers provided by HS2.

[Gareth Snell]

rose—

[Sir Patrick McLoughlin]

I give way for the last time.

[Gareth Snell]

I thank the former Secretary of State for giving way. What does he think will be the extra capacity for commuter services around Staffordshire? There are no additional plans for commuter services under the proposals. There is no additional infrastructure, other than the HS2 route itself, so there is no immediate benefit.

[Sir Patrick McLoughlin]

Perhaps the hon. Gentleman wants us to have a detailed timetable for 10 years’ time, but extra capacity will become available for new services. I believe that Stoke-on-Trent will benefit greatly from HS2 because of its link, its service and its closeness to Crewe. We then have to improve some of the road structures in and around Stoke-on-Trent so that people can receive the benefit. That will represent far more investment than Stoke-on-Trent saw in any year under a Labour Government, so we can be rightly proud of what we are doing.

I fully accept—my right hon. Friend the Secretary of State addressed this—that any big infrastructure project will always lead to certain people being inconvenienced. If there were a way of ensuring that people would not be inconvenienced, we would all move for it. I am afraid that inconvenience is inevitable. It is worth remembering that the first time a railway was proposed between Birmingham and London, the idea was defeated in the House of Commons because everybody said that the canals were perfectly adequate. That was part of the problem with the west coast main line, and it is why certain diversions were built into it.

The line from the west midlands to Crewe will be of significant benefit to transport infrastructure in this country, the United Kingdom as a whole and our cities outside London by creating connectivity not just between London and our cities, but between those cities. The line is important, and it is moving in the right direction. I congratulate my right hon. Friend the Secretary of State on this proposal.

--- Later in debate ---

[Andrew Jones]

Well, the hon. Gentleman suggests that even more public money should go in, so I am not sure where his argument takes him, apart from round in a circle. We are seeing long-overdue public investment in the rail industry.

[Sir Patrick McLoughlin]

We do not want to spend too much time on this issue, but the simple fact is that in the past, when the nationalised railway had to rely solely on the Government, the Government cut off its funding. With privatisation, it has attracted funding. The truth of the matter is that that has seen growth in the rail industry that has made something like HS2 absolutely necessary.

[Andrew Jones]

My right hon. Friend is as wise as ever. Not only do we have public money going into our railways, but we are seeing private investment attracted into our railways and therefore more investment in aggregate. We have this urgent need for capacity within our network to cater for the growth both in passengers and in freight.

After years of decline, this decision has been taken to go for growth. The next question that successive Governments have faced is what form that should take. Should it be investment in the classic rail network, or should we be embracing new technology? Well, we should of course be embracing new technology. Perhaps it is again worth remembering that that has not always been the case under nationalised industries. The UK built its last steam engine in 1960, and it was only in 1964 that the Japanese introduced the bullet train. The Government are buying investment not in phone boxes, but in fibre broadband. Technology should of course be at the heart of our investment decisions.

Oral Answers to Questions

Lord McLoughlin Excerpts

Thursday 18th January 2018 Commons Chamber

[Chris Grayling]

I have just received the proposals from Network Rail, and we are now reviewing them. My aim is to start this £3 billion upgrade within a matter of months. The project is due to really get under way next year. We are looking at all the different options but, as I have said, electrification will be part of the programme.

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

Up until 1992, when the only investment in the railways came from the public sector, rail usage was declining. Since privatisation, we have seen a massive increase in the amount of people using the railways. Does my right hon. Friend agree that that is because of the changes that the private sector brought in?

[Chris Grayling]

I absolutely agree with my right hon. Friend. I do not understand the policy adopted by the Labour party. We are now seeing the construction of thousands of new carriages funded by the private sector, and we are getting rid of some of the legacy trains from the days of British Rail that were not up to scratch in those days and are certainly not up to scratch now. That is because private money is coming in alongside our investment programme.

--- Later in debate ---

[Jesse Norman]

As the hon. Gentleman will be aware, the Bus Services Act 2017 has created those powers. We are in conversations—my officials are in conversations —with Mayors in Manchester and elsewhere in the country, and we remain very interested in having further conversations with other Mayors who wish to avail themselves of these powers.

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

When can we expect a decision on the Transport and Works Act order application for the improvement of the Hope Valley line? The public inquiry was in May 2016 and it reported in November 2016, but so far the Department has been unable to say when we will get a decision.

[Chris Grayling]

I will seek to gee things along. The Hope Valley line, as my right hon. Friend will know, is one part of the package of proposals—some new lines, some upgraded lines—that Transport for the North has brought forward for the northern powerhouse rail. I will seek to make sure that that process is concluded as quickly as possible.

Rail Franchising

Lord McLoughlin Excerpts

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.

--- Later in debate ---

[Chris Grayling]

I will take two more interventions, and then I will make some progress.

[Sir Patrick McLoughlin]

The Secretary of State may not actually be able to answer my question at the moment, but the Minister may be able to later. Could he give us an indication as to how much investment there will be in new infrastructure and new railway carriages between 2010 and 2020? How does it compare with the kind of investment that took place between 1997 and 2010?

[Chris Grayling]

I cannot give the exact numbers, but we are investing tens of billions of pounds in the railways over the period that my right hon. Friend mentioned. Crucially, the private sector that the Labour party seems to dislike so much is investing billions of pounds in those new trains. The new trains that are arriving in all parts of the network right now are being funded not by the Government, but by the private sector.

This is the key flaw in Labour’s arguments. Actually, if we get rid of the private sector in the rail network, there will not be any new trains, because this is about billions of pounds that is coming from elsewhere. That money comes otherwise from the Treasury—it has to compete with money for schools and hospitals. Through the public-private organisations that work side by side in our railways, we are delivering a huge infrastructure investment programme and, at the same time, a transformation of our rolling stock. That is what is necessary.

HS2: South Yorkshire Update

Lord McLoughlin Excerpts

Thursday 7th July 2016 Written Statements

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

Since the Government proposed that South Yorkshire should be served by a high speed station at Meadowhall in 2013, opinion among local stakeholders has remained divided. This has made the decision about where to best to locate an HS2 station in South Yorkshire very challenging. I would therefore like to thank Sir David Higgins, Chairman of HS2 Ltd, for the work he and HS2 Ltd have undertaken in re-appraising the options and welcome the report he has published today on this issue.

The report re-examines both the HS2 station location and route in South Yorkshire as well as alternative high speed city centre proposals at both Sheffield Midland station and the former Sheffield Victoria station.

There are two key recommendations:

That HS2 services should serve Sheffield Midland station in Sheffield city centre by running high speed ‘classic compatible’ trains into Sheffield via a dedicated link off the main high speed line. Under this proposition Sir David believes it would be possible to provide two trains per hour into Sheffield city centre and a new high speed service to Chesterfield.

That the high speed main line be moved further east, initially running parallel to the M18. Sir David suggests that this alignment not only avoids the complexities and risks associated with the Meadowhall route but also provides journey time savings to services heading to Leeds, York and Newcastle.

The report also notes that using the existing Sheffield Midland station for HS2 services opens up the possibility of running high speed trains from Sheffield to Leeds by building a link back onto the main HS2 line north of Sheffield. This link could deliver Transport for the North’s (TfN) ambition for a frequent 30-minute journey time between Leeds and Sheffield, and might also be used by Birmingham-Leeds HS2 services, allowing them to route through Sheffield. TfN are considering the Sheffield-Leeds corridor alongside other Northern Powerhouse rail schemes and I look forward to their advice on how the HS2 mainline can be utilised to help deliver their aspirations for fast and frequent city centre services across the north.

I appreciate that the recommendations set out by Sir David Higgins today will cause concern for those living along this newly proposed route and will also be unsettling for those living alongside the consulted route via Meadowhall. HS2 Ltd will now engage closely with these affected communities to provide them with the necessary support and information as quickly as possible. I would also like to reassure homeowners along both routes that they are eligible to apply to the Government’s exceptional hardship scheme from today.

Before I reach a decision about HS2 in South Yorkshire I will want to consider today’s report in detail. It is my intention to make an announcement on the HS2 Phase Two route, of which South Yorkshire is a part, later this year. Should I decide to adopt the report’s recommendations as my preferred option in South Yorkshire I will then hold a public consultation in order to allow local stakeholders and affected communities the opportunity to comment on the proposal, alongside a consultation on the property compensation and assistance schemes for the entire route.

[HCWS63]

Oral Answers to Questions

Lord McLoughlin Excerpts

Thursday 30th June 2016 Commons Chamber

[Sir David Amess (Southend West) (Con)]

4. What assessment he has made of the adequacy of the amount of railway rolling stock.

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

I am sure that my hon. Friend will join me in welcoming the introduction of an additional 9,000 peak-time seats on the Essex Thameside route by January next year. By 2024, capacity will increase by a further 16,000 seats.

[Sir David Amess]

As my right hon. Friend is aware, there has been some criticism from constituents about c2c train services and services on the Greater Anglia line. Will he share with the House when he expects further new rolling stock to be provided by c2c and when he expects the decision on the Greater Anglia franchise to be announced?

[Mr McLoughlin]

A number of improvements are coming to the c2c line. In the past, my hon. Friend has been incredibly critical, but he has welcomed many of the changes that have been brought in by the new franchise. Obviously, those take a bit of time to bed in, but I know he very much welcomes the extra availability and the new seats, and I hope to see those in operation as soon as possible.

[Mr Ben Bradshaw (Exeter) (Lab)]

The Secretary of State will know that the rolling stock serving the south-west of England dates from the 1970s, and we are eagerly updating our new, updated trains. What assessment have he and his Department made of the impact of Brexit and the economic shock from Brexit on his overall investment plans for our transport system?

[Mr McLoughlin]

I am pleased to be travelling on one of the new intercity express programme trains later today to mark the 150 years of the part of the railways that serves his town and his constituency.

[Mr Bradshaw]

City.

[Mr McLoughlin]

I apologise to the right hon. Gentleman. The investment we have seen on his line, and the investment we are seeing in the new IEP trains and the new AT300s, which will serve places further into the south-west, are very welcome, and I am pleased that he welcomes that investment.

[Jo Churchill (Bury St Edmunds) (Con)]

Following on from the question from my hon. Friend the Member for Southend West (Sir David Amess), will the Secretary of State assure me that the East Anglia rail franchise announcement is imminent, as we expect, so that we in the east can move out of the sidings?

[Mr McLoughlin]

I well know the desire of all my colleagues in East Anglia to hear about the new franchise. I hope not to have to keep them waiting too long.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

The other day, an employee of Virgin Trains East Coast described the refurb of some of the old trains as “like giving granny a new dress”. Is the Secretary of State not aware of the state of the rolling stock on the east coast? When is it going to get better, and how can we justify that sort of rolling stock when we are wasting so much money on HS2?

[Mr McLoughlin]

What the hon. Gentleman should be welcoming, as he always fails to do, is the vast investment that we are seeing on that railway line. He is now complaining about the upgrading of stock in the interim before the new IEP trains come in. I would have thought he would welcome that new service and also welcome the new service into London that will eventually serve Huddersfield.

[Mr Philip Hollobone (Kettering) (Con)]

The Secretary of State and I use the midland main line operated by East Midlands Trains to get to and from our constituencies. The high-speed 125 trains on that line are rapidly approaching the end of their operating life. Will he ensure that, with the new franchise, they are replaced with new rolling stock and not recycled second-hand rolling stock from other lines?

[Mr McLoughlin]

When we come to look at the franchise for the east midlands line, I am sure that is one of the many issues we will take into account. It is worth pointing out that since 2010 we have seen almost 5,000 new carriages for use in the UK’s railway network. That is one of the biggest ever upgrades of our railway stock. Like my hon. Friend, as a regular user of the east midlands line I also hope it will get new rolling stock in due course.

[Sue Hayman (Workington) (Lab)]

The Cumbrian Coast railway line serves my constituency, and I get regular complaints about the rolling stock. A lot of the busy trains often have only a single carriage, and some of the carriages date from the 1970s. What work are the Government doing with the new franchise holder to improve the situation?

[Mr McLoughlin]

We are doing a number of things with regard to the Transpennine route and the Northern route—not least, under this Government, the phasing out of the Pacer train. That was always promised and alluded to, but we are actually going to deliver on it, and I am very pleased about that. If the hon. Lady is saying that more needs to be done, I accept that, but the very fact that since 2010 , as I say, almost 5,000 new carriages will have been ordered and put into use on the railway network is a very commendable record.

[Mary Robinson (Cheadle) (Con)]

With over 900 houses currently under construction in Woodford, residents in Cheadle, Gatley, Cheadle Hulme and Bramhall are facing daily gridlock at the junction of the A34 and the A560. Will the Secretary of State agree to meet me to discuss ways to alleviate this problem?

[Mr McLoughlin]

I am sure I can organise a meeting for my hon. Friend to discuss this problem. We had a bit of a look at it some time ago when I was last in her constituency, but I am more than happy to discuss any transport problems that she has.

[Mr Speaker]

Order. I think that, as I have just been advised, the rolling stock has rather left the line. I err on the side of generosity, but the hon. Lady’s supplementary was at best tangentially related to the question on the Order Paper. We will let her off on this occasion.

[Callum McCaig (Aberdeen South) (SNP)]

5. Whether he plans to review the effectiveness of the public service obligation for regional airports.

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

The Government will soon update their aviation policy framework. As part of this update, the Government will consider the role that public service obligations can play in serving regional airports, which are a vital economic and social lifeline for all parts of the United Kingdom.

[Callum McCaig]

For Aberdeen, as an international oil and gas hub, the access that we enjoy to Heathrow as a gateway to the rest of the world is as important, if not perhaps more important, than its access to this fine city of London. Aberdeen has looked at the prospect of a PSO, which would provide access only to a London airport, whereas we need point-to-point access. Will the Secretary of State ensure that that is considered in the review?

[Mr McLoughlin]

I will certainly consider the representations that the hon. Gentleman has made to see whether that is compatible with the overall rules that we want to introduce in public service obligations.

[Andy McDonald (Middlesbrough) (Lab)]

Does the Secretary of State agree that the sustainability and development of regional airports could be much enhanced by the increase in connectivity inherent in the additional capacity plans for the south-east? Given that such connectivity will deliver economic growth throughout the UK, what assessment has he made of the efficacy of any engagement with the regional airports in ensuring that once a decision is made, the proposals in the recommended option of Heathrow will deliver the desired development of our regional airports?

[Mr McLoughlin]

I welcome the hon. Gentleman to his position. I have been in this post for four years, and he is the fifth shadow Secretary of State I have seen and, I think, the 10th person to hold the Labour transport brief in nine years. I congratulate him on that. I also thank the hon. Member for Nottingham South (Lilian Greenwood) for the way in which she conducted herself while she was doing the job. Although at the moment she is sitting on the Back Benches, I am sure that that is only a temporary measure while certain things are sorted out.

If I may now come to the question—I have almost forgotten what it was—I think we all agree that regional airports play a vital role in connectivity. One of the issues about regional airports—this was alluded to in a previous question—is their accessibility to the London airport system. We have to consider such issues and some later questions may address them.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

The Davies commission report came out almost a year ago—I think a year ago tomorrow, in fact—and it recommended that the Government take a different view of point-to-point PSOs. Regional connectivity for Scotland could be enhanced by PSOs for many airports, including London City, yet London City’s plans for development are still on hold. Will the Cabinet Secretary commit to releasing that development now, so that it can partake in PSO development?

[Mr McLoughlin]

That is one of the issues for which the Mayor of London has responsibility first, and I think he has already taken a view on it. When a decision comes to me, obviously it will have to go through the proper process. I agree with the hon. Gentleman about the opportunities for people to get to London airports.

[Drew Hendry]

I thank the Secretary of State for that answer. The Davies commission report also recommended that we urgently consider expansion and that other airports, such as Heathrow and Gatwick, might benefit from PSO connectivity. Can we finally get a decision on airport expansion in the south-east, or will we yet again see more and more fudging of this subject?

[Mr McLoughlin]

I fear that the hon. Gentleman has come in a bit too early. I intend to address the points he has just made in response to question 8 on the Order Paper.

[Jessica Morden (Newport East) (Lab)]

6. When he expects a decision to be made on post-concession arrangements for the Severn bridges.

--- Later in debate ---

[Valerie Vaz (Walsall South) (Lab)]

10. When he plans to make a decision on the construction of an additional runway in south-east England.

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

I had hoped that we would be able to announce a decision on airport capacity this summer. Clearly, any announcement on airport capacity would have to be made when the House was in session. Being realistic, given recent events, I cannot now foresee that there will be an announcement until at least October. We aim to publish the further analysis on air quality soon. Separately, promoters have announced undertakings that would increase the compensation available for residents living near the airports and the connectivity between other UK airports. The Government are fully committed to delivering the important infrastructure projects that they have set out, including the delivery of runway capacity on the timetable set out by the Davies report.

[Mr Evans]

It is another boring day at Westminster, and I was rather hoping that the Secretary of State might inject some excitement into it for me. Nobody can accuse him of rushing this decision. Post-Brexit, with a number of countries banging on the door of the UK to do trade deals, does he agree that increasing airport capacity at London City, London Heathrow and London Gatwick will be vital to British businesses throughout the UK?

[Mr McLoughlin]

I would have liked to be in the position of asking the House to make a decision, and endorsing a decision. We are not going to be in that position, and we have to be realistic. My hon. Friend may regard it as a boring day in the House of Commons, but it is certainly not a boring day in Westminster.

[Valerie Vaz]

The Secretary of State will know that I am going to make the case for Birmingham airport. Is there still time, whenever the report comes out, for Birmingham airport to make the case for the 250,000 jobs that could flow from a second runway there?

[Mr McLoughlin]

Looking at the hon. Lady’s question, I did not realise that she was going to mention Birmingham, because her question specifically talks about south-east England. To the best of my knowledge, Birmingham has not moved since I knew it as a boy, 20 miles away from where I lived. Birmingham airport is a fantastic airport, which serves an important role as far as Birmingham and the midlands are concerned, and it has just had a runway extension.

[Mr Speaker]

We are greatly reassured by the Secretary of State’s geographical knowledge.

[Sir Alan Haselhurst (Saffron Walden) (Con)]

Does my right hon. Friend accept that even if he had been able to make an announcement on this subject today, the earliest that extra runway capacity could be provided would be 2023, and at worst probably 2030? Does that not point up the need to improve connectivity to Stansted, which is the only airport in the London area with the capacity to deal with the strain of extra demand?

[Mr McLoughlin]

That is one of those questions that one cannot really disagree with, and my right hon. Friend has a habit of asking such questions in Transport questions. Although I agree with the point he makes, the delivery of what he is asking for is somewhat more difficult than he suggests.

[Mrs Louise Ellman (Liverpool, Riverside) (Lab/Co-op)]

Yet more dithering on the decision whether to expand hub capacity at Heathrow will harm the regions of this country and the United Kingdom. What recommendation will the Secretary of State make to the next Prime Minister?

[Mr McLoughlin]

Well, one step at a time. If the hon. Lady does not mind my saying so, she is assuming a number of events, which I am not going to do. In all seriousness, I would say to the hon. Lady, who is Chair of the Transport Committee, that this is a very important and big decision for the United Kingdom and it is not an easy one. The simple fact is that whichever option we choose will impact on people’s lives. It is therefore right to make sure we do all the preparatory work on air quality and the other issues. However, I very much hope that a decision can be made later this year.

[Crispin Blunt (Reigate) (Con)]

It is inconceivable that either the Home Secretary or the former Mayor of London would at this time put their constituency interests ahead of the national interest. I know that had the Secretary of State sought an assurance from the former Mayor of London that he would support this decision if the Government went ahead with it, he would have received it. Did he seek such an assurance, and if not, why not? This is not in the national interest, and it is not in the interests of people around Gatwick who will have to live with further uncertainty.

[Mr McLoughlin]

I am very sorry that my hon. Friend is disappointed by my announcement this morning. As I have said, however, given the parliamentary timetable and when the House will rise, I do not see how it would be possible to come to the House for a statement with a recommendation and possibly a vote before the summer recess.

[Lilian Greenwood (Nottingham South) (Lab)]

I thank the Secretary of State for his earlier comments, but his answer is exacerbating the profound uncertainty about the future of essential transport projects, including HS2 and a new runway at Heathrow. Hundreds of thousands of jobs and apprenticeships are in the balance. Does he not understand that delaying these plans will add to the wider economic shock that was triggered last week, and that public and private investment in our transport networks must be delivered?

[Mr McLoughlin]

We are now back on familiar ground and I do not need to repeat what I said earlier. The simple fact is that I am very proud of the investment that this Government are putting into infrastructure. Infrastructure investment is 50% higher than it was during the last Parliament, and it is much larger than the amount put in by the previous Labour Government, so this Government are very committed to infrastructure investment. The hon. Lady talks about airport capacity, but there were airport capacity issues during the 13 years her party was in government, when it did nothing.

[Andy McDonald (Middlesbrough) (Lab)]

With the political and economic uncertainty following last week’s referendum vote, infrastructure projects have become more, not less, important for the future of this country. That is particularly true of our airports, which will have renewed importance in ensuring that the UK is a global, outward-looking trading nation. The comments made by the Prime Minister and, indeed, by the Secretary of State today have cast doubt on that. Does the Secretary of State not accept that kicking this decision into the long grass yet again is simply utterly unacceptable?

[Mr McLoughlin]

We are accused of kicking something into the long grass, but I have said that I hope to see a decision by the end of the year, and Opposition Members have not yet expounded which option they actually support.

[Michelle Donelan (Chippenham) (Con)]

9. What steps he has taken to increase the number of tourists travelling by rail.

--- Later in debate ---

[Andrew Stephenson (Pendle) (Con)]

12. What steps his Department is taking to implement the road investment strategy.

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

The Government have launched the first ever road investment strategy, committing a record £15 billion up to 2020. Work is already under way on 20 of the schemes named in the road investment strategy, with five schemes already open to traffic in 2015-16. I can confirm that work on the A14—one of the biggest projects in our RIS, at £1.5 billion—is on track to start construction later this year.

[Andrew Stephenson]

Does my right hon. Friend agree that the momentous events of last week, and the opportunities they provide, mean that our transport infrastructure and schemes such as the road investment strategy are now more important than ever?

[Mr McLoughlin]

It is very important that we press on with both road and rail infrastructure projects. They are often controversial when we start them, but by the time they are completed people have usually asked why we did not start them some time ago.

[Daniel Zeichner (Cambridge) (Lab)]

Back in 2015, when the Government announced the road investment strategy, £6 billion was promised to resurface 80% of our strategic road network. We now understand that Highways England is saying that that promise will not be met. Where has the money gone, and what projects are being cancelled?

[Mr McLoughlin]

This is coming from the party that actually stopped investment in road spending almost completely. We are creating record investment while having to clear up some of the mess made by years of under-investment while the Labour party was in office. I do not recognise the points the hon. Gentleman has made.

[Danny Kinahan (South Antrim) (UUP)]

17. What steps he is taking to ensure that a decision is made as soon as possible on the new airport runway in south-east England.

--- Later in debate ---

[Justin Madders (Ellesmere Port and Neston) (Lab)]

22. What recent assessment he has made of the performance of passenger rail franchises.

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

Does anyone have—I do apologise, Mr Speaker. I rather thought we were going on to topical questions, so my mind was there and not on the answer to the hon. Gentleman’s question.

In the national rail passenger survey report for spring 2016, published this morning, 80% of passengers were satisfied with their journey. Merseyrail, which serves many of the hon. Member’s constituents, scored 90%.

[Justin Madders]

Unfortunately the Secretary of State’s response was as late as a number of the trains on the Wrexham to Bidston line, which goes through my constituency. It is an infrequent, unreliable and expensive service, which is due for renewal in the next couple of years. Will the Secretary of State ensure that we have the highest specification possible for the renewal, so we get a much improved service?

[Mr McLoughlin]

I apologise to the hon. Gentleman for the slight delay in my response. I very much hope that his constituents will enjoy some of the improvements happening in the franchises serving his area. I referred to Merseyrail, but of course there are other train operating companies providing services into his constituency and I think there will be considerable uplift on both Northern and TransPennine Express links, which will benefit his constituents.

[Jason McCartney (Colne Valley) (Con)]

T1. If he will make a statement on his departmental responsibilities.

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

Right—I was prepared for this, Mr Speaker.

I am proud of the fact that capital expenditure on infrastructure will increase by 50% in this Parliament. We have set up the first ever roads investment strategy, on which I answered questions earlier this morning, but throughout my time at the Department for Transport I have attached great importance to safety, so I am pleased that the latest statistics for road casualties in Great Britain, published at 9.30 this morning, show a decrease of 2% in road fatalities, a decrease of 3% in serious injuries, and a decrease of 4% in slight injuries. The number of deaths is too high, but the reduction is very welcome indeed.

[Jason McCartney (Colne Valley) (Con)]

Please can the Secretary of State confirm four dates for me? When will Huddersfield get its direct London service? When will the Pacers go? When will HS2 link to Yorkshire? And when will the electrification of the trans-Pennine route begin?

[Mr McLoughlin]

Off the top of my head, I think the answers are May 2019; December 2019; 2033; and I am happy to say that preliminary work has started, although final decisions on the scope will have to wait until 2018. I wish I had all the figures in my head, as you often do, Mr Speaker.

[Mr Speaker]

I am extremely grateful to the Secretary of State.

--- Later in debate ---

[Mr McLoughlin]

I met the right hon. Lady to discuss other issues in her constituency following her request at the last Transport questions, and she mentioned four-tracking. That is being considered under the chairmanship of my right hon. Friend the Member for Saffron Walden (Sir Alan Haselhurst), who is examining services to that part of London and beyond. I look forward to receiving that report and, hopefully, making progress.

[David Rutley (Macclesfield) (Con)]

T4. What assessment has been made of the importance of transport improvement and infrastructure projects to the success of the northern powerhouse? Will my hon. Friend provide an update on progress?

[Calum Kerr (Berwickshire, Roxburgh and Selkirk) (SNP)]

T6. Since it was reopened by the Scottish Government last year, the Borders railway has been a remarkable success. In the first six months of its operation, passenger forecasts were exceeded by 22% and the Scottish Government have committed to a feasibility study on restoring the line to its historic route to extend it to Hawick and Carlisle. What dialogue has the Secretary of State had with the new Scottish Transport Minister on the matter and does he support the principle of a new cross-border rail connection?

[Mr McLoughlin]

I have not yet had the chance to meet the new Scottish Transport Minister to discuss this particular issue but there will be opportunities. I look forward to our first meeting on these subjects and I am more than happy to consider any of the points that he makes. The hon. Gentleman rightly makes the point about what happens when new services are provided. Particularly on the railways we often see a greater take-up than planned.

[Stephen Hammond (Wimbledon) (Con)]

T5. My constituents in Motspur Park, Raynes Park and Wimbledon welcome the concept of Crossrail 2, but are worried about consultation. Could my right hon. Friend assure my constituents that the Government will ensure that Crossrail 2 has the money to undertake an extensive consultation and a quality masterplan for the centre of Wimbledon?

[Mr McLoughlin]

I am well aware of the concerns of my hon. Friend’s constituents about the current plans. Both Transport for London and Network Rail are investigating the feasibility of a number of alternative options, which potentially include tunnelling and reconfiguration of stations in the area. Of course we will continue to consult on this. As he knows from his involvement in many major transport systems, there is a lot of consultation before we start digging the tunnel for Crossrail 2.

[Mr Speaker]

Hannah Bardell, not here.

[Caroline Lucas (Brighton, Pavilion) (Green)]

T8. Behind closed doors in February, Ministers agreed to allow GTR to cancel even more services without fear of breaching its contract, increasing the number from 23,000 cancellations to 32,000 cancellations. MPs were told about that on the last day before recess in May. How on earth can we have confidence in GTR services when there is such a delay before MPs are told and when it appears that Ministers are in cahoots, setting up risk-free contracts undermining the interests of our passengers?

[Mr McLoughlin]

I would have hoped that the hon. Lady would have worked with us, with all the investment that we are putting into the railway serving her area. All she has ever done is complain and back up the unions’ unjustified position on the new investment. There has been billions of pounds on new rolling stock and massive investment in London Bridge station. However, all she does is continually complain and take donations from the RMT.

[Mr David Nuttall (Bury North) (Con)]

What is the Department doing to ensure that the pothole action money is being efficiently spent and to ensure best practice?

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

T9. I have previously highlighted the predicted 45,000 shortage of HGV drivers in the UK. That is only going to get worse after Brexit because many agencies already rely on EU citizens to supply HGV drivers. When will the Government commit to looking at the cost benefits of providing grants for companies to put people who are unemployed through HGV training?

[Mr McLoughlin]

I have had discussions with my right hon. Friend the Secretary of State for Work and Pensions on these matters, as far as training is concerned, and we are looking across at the Department for Business, Innovation and Skills, too, to assess what can be done to move this issue forward. There are good opportunities for young people to become drivers, and I would encourage them to look at those opportunities.

[Sir Alan Haselhurst (Saffron Walden) (Con)]

Has my right hon. Friend’s Department made any assessment of the potential for aircraft types such as the Boeing 787 and the A350, which can fly greater distances point to point, to provide opportunities for Manchester and Birmingham aircrafts, demonstrating that there are more ways of doing business in this country than landing in London?

--- Later in debate ---

[Christian Matheson (City of Chester) (Lab)]

Will the Secretary of State take the opportunity to scotch reports of Treasury meddling in HS2 post-referendum, confirm that it will be built north of Birmingham and that proper services will run through Crewe to benefit all of Cheshire?

[Mr McLoughlin]

I never comment on rumours, because I have started quite a few of them during my time in this House. I am committed to HS2, which I believe to be very important for this country. We are already seeing the benefits for Birmingham of the investment that is going around.

[Peter Aldous (Waveney) (Con)]

Lowestoft railway station, which has the great advantage of being in the centre of the town, has fallen into considerable disrepair in recent years. Lowestoft station partners have some exciting initiatives for bringing it back into full use. Will the Minister meet me and them to explore how best to achieve that?

--- Later in debate ---

[Mr McLoughlin]

I have often thought that SNP Members lived in a different world, and if the hon. Gentleman thinks I have made the Leader of the Opposition look decisive, he has proved that this morning in spades. I stand by the statements I made earlier. I would have liked to be in such a position, but realistically that is not possible at a time when the House is not sitting. I have informed the House this morning, as it is right for me to do.

[Martin Vickers (Cleethorpes) (Con)]

The recent decision by the regulator to refuse direct services between Cleethorpes and King’s Cross shows that the present rules are working more in the interest of the franchise holder than the passengers. The Conservative Government surely support competition, so when are they going to support the passengers and allow more of that competition?

[Mr McLoughlin]

I do not mind my hon. Friend rightly calling for more services directly to his constituency, but in fairness, we have seen a vast improvement and we are going to see it continue as far as the new franchise is concerned, not to mention the protection of services for which my hon. Friend originally campaigned in respect of the Northern franchise and the phasing out of the Pacers so that his constituents and others in the area will have the chance of using new trains. That shows that we are committed to not only better services in general, but better services for my hon. Friend’s constituents.

[Margaret Ferrier (Rutherglen and Hamilton West) (SNP)]

I recently attended a guide dogs lobby of Parliament, and was shocked to learn about the extent of the problems that guide dog owners experience when trying to get taxis. Has the Secretary of State discussed that issue recently with his Cabinet colleagues?

[Mr McLoughlin]

Like many other Members, I too have been in touch with the Guide Dogs organisation. In fact, I was taken while blindfolded around Bakewell by a guide dog just a few weeks ago, and that demonstrated to me very clearly some of the problems often encountered by people who use assistance dogs. The law should be used to deal with any discrimination in that regard, and it is already an offence for taxi drivers to discriminate against those with assistance dogs.

[Tom Pursglove (Corby) (Con)]

Investment in the Chowns Mill roundabout and the dualling of the A45 are important priorities for people in east Northamptonshire, and they are part of the road investment strategy. Will the Secretary of State do all that he can to ensure that they are delivered as early as possible, given that they are so desperately needed?

Rail Franchising

Lord McLoughlin Excerpts

Thursday 26th May 2016 Written Statements

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

I am pleased to inform the House that my Department has published its refreshed programme for rail franchising. Through this my Department is setting out an ambitious plan for new rail franchises that will give passengers high-quality rail services.

It is making it clear to the whole rail industry that competition for rail franchises is the best way to secure services for passengers at good value for the taxpayer.

Through our plan for the railways we are making journeys better for everyone—we are reducing crowding, cutting journey times and improving trains and stations across the country. This supports our regional economies, creating jobs and opportunities and connecting people to business.

During this Parliament my Department has already delivered the new Northern and TransPennine Express franchises which will oversee a massive £1.2 billion private-sector investment in our rail services. This includes hundreds of brand-new modem trains, thousands more seats, more services. Together this will deliver a modern, 21st century service for passengers, help to close the economic gap between north and south and help bring the northern powerhouse to life. We expect to continue to deliver similar results for our upcoming franchise competitions.

Private sector competition is good for passengers, local communities and taxpayers. That is why as part of our latest schedule we have started the competition for new franchises for the Intercity West Coast, East Anglia, South Western, East Midlands and West Midlands. I am confident that, through these franchises we will deliver the rail network this country needs.

I am placing a copy of the franchising schedule in the Libraries of the House.

[HCWS34]

Transport and Local Infrastructure

Lord McLoughlin Excerpts

Thursday 19th May 2016 Commons Chamber

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

With permission, before I introduce the debate I would like to make a brief statement about the loss of EgyptAir flight MS804. The aircraft, an Airbus 320, carrying 56 passengers and 10 members of crew between Paris and Cairo, disappeared from radar at approximately 1.30 am UK time, over the waters of the eastern Mediterranean. We understand that one of the passengers on board is a UK national and that consular staff are in contact with the family and are providing support. I know that the House will want to join me in saying that our thoughts are with the family and friends of all those on board. The Government are in touch with the Egyptian and French authorities and have offered full assistance. The air accidents investigation branch has offered to assist with the investigation in any way it can.

[Sir Gerald Howarth (Aldershot) (Con)]

As chairman of the all-party Egypt group, I thank my right hon. Friend for the measures that he is seeking to take and associate myself and the group with the condolences that he has expressed. Will the Government seek to discuss with the French authorities in particular whether they are satisfied that the measures that they are taking to screen passengers and luggage at Paris meet the requirements that we in the United Kingdom feel are necessary, bearing in mind that, I believe, a number of people airside in Paris have had their authorisation revoked because of their association with Islamic extremism?

[Mr McLoughlin]

It is far too early to make any assumptions about what has happened, but of course we will want to look at all the issues and discuss them with the French authorities and others. I can assure my hon. Friend that we will take that further forward.

It is a pleasure to open this debate on Her Majesty’s Gracious Speech. I very much welcome the opportunity to talk about our plans for transport and infrastructure. Yesterday’s speech was all about building a stronger, more resilient, more modern economy that provides security for all people and opportunity at every stage of life—a country fit for the future, no matter the challenges it faces. If we have learned anything from the past decade, it is that we need to be better prepared and more responsible during the times of plenty so that we can weather the more difficult times.

In the previous Parliament, we had to take some tough economic decisions, but they were the right economic decisions. We earned a hard-fought recovery from recession and the financial crisis. In 2014, Britain was the fastest growing major advanced economy in the world. In 2015, we were the second fastest growing after the United States. In 2016, the employment rate has hit yet another record high. More families are benefiting from the security of regular wages, and unemployment has fallen once again. The deficit is down by two thirds as a share of GDP on 2010, and the Office for Budget Responsibility has forecast that it will be eliminated by 2019-20. That recovery is still going on today, and with the global economy slowing, it is even more vital that we stick to our long-term economic plan.

However, we do not just need a responsible fiscal strategy; we also need to invest for Britain’s future to create the capacity and space we need to grow. For decades, we have been slipping down the global infrastructure league tables. To take an example from recent history, let me pluck two years out of thin air—say, between 1997 and 2010. In those 13 years that I take at random, Britain slipped from seventh to 33rd in the world infrastructure league tables. As a result, we watched our roads grow increasingly congested, our railways become overcrowded, and our town centres choke with traffic. If we cannot move people or goods efficiently from one place to another, how can we expect businesses to invest in Britain? Building the infrastructure that Britain needs to compete is one of the defining political challenges of the age, so we have spent the past six years in government turning things around.

[Mark Spencer (Sherwood) (Con)]

Will the Secretary of State give way?

[Mr McLoughlin]

I could take a lesson from the Leader of the Opposition from yesterday, but I hope my speech will not be quite as bad as that, so I certainly give way to my hon. Friend.

[Mark Spencer]

I am grateful to the Secretary of State. Does he recognise that one of the barriers to gaining employment is sometimes the infrastructure needed to get from where one lives to where one wants to work? In that vein, does he recall standing on the platform at the former Edwinstowe railway station, and will he bring forward plans to fund the extension of the Robin Hood line in the very near future?

[Mr McLoughlin]

I well remember visiting my hon. Friend’s constituency with him just over 12 months ago, although I cannot remember what was happening at the time. I also well remember the fantastic result that he had at the subsequent general election and the way in which he has always pushed for more infrastructure in his area. I want us to work with him, the local authority and the local enterprise partnership to see what other systems of transport we can provide. I have to say that Nottingham has not done too badly in relation to infrastructure investment. We have seen a huge amount of investment in the new station and the dualling of the A457—[Interruption]—and I am very grateful that the hon. Member for Nottingham South (Lilian Greenwood) was able to join me for its opening. [Interruption.] She says, “Thanks to a Labour county council.” Actually, those plans were progressed by a Conservative county council when it was in office and had not been progressed before at all, as she well knows.

[Andrew Bingham (High Peak) (Con)]

I suspect that the Secretary of State knows exactly what I am going to raise with him. He picked the years of 1997 to 2010 at random, and I will go along the same vein. In ’97, my predecessor said that the Mottram-Tintwistle bypass would definitely get built; in 2010, there was still no spade in the ground. We promised before the last election that we would build the Mottram relief road and the Glossop spur, and we are looking at extending that to deal with the Mottram and Tintwistle problem. Can he confirm to me and my residents that we are still determined to press on with that as fast as possible? We talk about growing the economy and growing jobs, and that project is vital for Glossop and the surrounding area.

[Mr McLoughlin]

My hon. Friend is my parliamentary neighbour: our constituencies share a border. He has made his case and I am pleased to confirm our road investment strategy, which reflects the points he has made. In fact, we want to go further. We have commissioned a report by Colin Matthews on better connectivity between Manchester and Sheffield, which would have a huge beneficial effect for my hon. Friend’s constituency.

[Several hon. Members rose—]

[Mr McLoughlin]

I am slightly worried about the amount of time I am going to take and the number of Members who are seeking to intervene on me, but I cannot resist the hon. Member for Worsley and Eccles South (Barbara Keeley).

[Barbara Keeley (Worsley and Eccles South) (Lab)]

I hope that the Secretary of State will comment on the woeful transport situation in Salford in my constituency. There are no plans to improve our key road network and the three motorways in my constituency, or for any substantial upgrades to our rail services through Eccles, Walkden and Patricroft. Our bus services are completely woeful. Traffic in Salford has increased by 3.6%—three times the Greater Manchester average. On Monday I will meet the Royal Horticultural Society to discuss the building of its fifth garden, which will bring 1 million visitors to Salford every year. How are they going to be brought in?

[Mr McLoughlin]

I will come on to say more about the work we are doing on road infrastructure and devolution to local authorities. Salford should be in a strong position to take advantage of some of those measures.

[Christian Matheson (City of Chester) (Lab)]

May I also pick two years out of thin air, namely 2010 to 2020, which will mark a decade of absolutely zero investment in the M56 in Chester? The Government are refusing not only to upgrade it to a smart motorway, but to install police and Highways Agency cameras so that we may know what the problems are. What can my constituents look forward to in respect of the M56 upgrade?

--- Later in debate ---

[Mr McLoughlin]

I join the hon. Gentleman in saying that we need to spend more money on infrastructure, but we also have to make sure that we spend it properly and in a planned manner. As well as the extra investment—I will talk more about that—we will also look at those areas that we have not been able to cover, provided that we get the other sides of the economy in good order.

In the past six years, we have turned things around as far as infrastructure is concerned. We have climbed up the global infrastructure investment league table and are now in the top 10, ahead of France, Japan and Germany. Action is under way, with new wider roads, new faster trains and better urban transport. In the south-west there is the widening of the A30 and the A303, and there are brand new trains on order. In the north-west, Manchester Victoria station has been transformed, there are electric trains on the northern hub and motorways have been widened. In East Anglia, the A11 has opened and the Norwich northern distributor road is under construction. We are finally taking action on the A47, which is of great interest to my hon. Friend the Minister for Housing and Planning, who will wind up the debate, and on the A14. In the midlands, there has been a transformation at Birmingham New Street station, and the M1 has been partly converted to four-lane running. I could go on and mention Crossrail in London and other action right around the country, but time will not allow me to continue reciting my list of improvements.

[Oliver Colvile (Plymouth, Sutton and Devonport) (Con)]

I thank my right hon. Friend for mentioning the south-west. The key issues for us are ensuring that we have an alternative railway line to that down to Dawlish and getting the dualling of the A303 so that we can have better transport and therefore deliver productivity, which is lamentable at present.

[Mr McLoughlin]

I am grateful to my hon. Friend. The Labour party manifesto said that it would cancel some of our road programmes in the south-west. It mentioned them specifically and we will remind Labour of that time and again.

A Treasury report last year revealed that more than £400 billion-worth of infrastructure work is planned across the country. The biggest slice of that is for transport. Overall, transport infrastructure spending will rise by 50% during this Parliament. That means that we can invest £15 billion to maintain and improve our roads—the largest figure for a generation. There will be £6 billion for local highways maintenance, which is double the spending of the last Labour Government. We are also giving local authorities a multi-year funding settlement for the first time ever, with an additional £250 million to address local potholes.

We can contrast that with the last Labour Government’s record. Between 2001 and 2010, just 574 lane miles were added to our motorways; we are adding more than 1,300 miles. Labour electrified only 10 miles of rails of railway track; we have already electrified five times that amount, and anybody who goes on the Great Western line can see that there are many more to come very soon.

We are delivering the most ambitious rail modernisation programme since the Victorian era—a £40 billion investment. We have Crossrail, Thameslink, electrification and the intercity express programme. Hitachi—a company that has now moved its global headquarters to Britain—is building new carriages in new factories in the north-east, opened by the Prime Minister. Of course, there is High Speed 2, for which construction will start next year. This is a new start for infrastructure that will make Britain one of the leading transport investors.

The Gracious Speech also includes legislation to back the National Infrastructure Commission, whose influence is already being felt. Following its recommendations, we have invested an extra £300 million to improve northern transport connectivity, on top of the record £13 billion already committed across the north. We have given the green light to High Speed 3 between Leeds and Manchester and allocated an extra £80 million to help fund the development of Crossrail 2.

I am pleased to say that by the end of this Parliament, Crossrail 1—or, as we can now call it, the Elizabeth line—will be operating. It is the most significant investment in transport in London for many a generation, and it will make a welcome addition to the capital’s infrastructure.

[Mr Clive Betts (Sheffield South East) (Lab)]

I am a bit worried about Sheffield’s position in that list of schemes. The Secretary of State referred to HS3 as going from Manchester to Leeds, not connecting to Sheffield. Has that connection disappeared off the Government’s radar? Will he confirm that there is no truth in the stories that consideration is being given to abandoning the HS2 station in Sheffield, and that wherever that station might be, there will be one? Are we going to get HS3 as well?

[Mr McLoughlin]

I am coming on to HS2, and if the hon. Gentleman does not feel that I have answered his question after that, I will give way to him a little later. I hope he will be reassured by what I am about to say.

What I have described adds up to an ambitious pipeline of schemes that will not only free up capacity, boost freight and improve travel but help us to attract jobs, rebalance the economy and make us a more prosperous country. Of course, there will be disruption and inconvenience while some of that is happening, but when the work is done we will get the benefits, as at Reading station, the new Wakefield station or Nottingham station—infrastructure that will prepare Britain for the future.

That is what is behind the modern transport Bill, which will pave the way for the technologies and transport of tomorrow. We are already developing the charging infrastructure for electric and hybrid vehicles. Driverless cars and commercial space flights may seem like science fiction to some, but the economic potential of those new technologies is vast, and we are determined that Britain will benefit by helping to lead their development. Driverless cars will come under new legislation so that they can be insured under ordinary policies. The new laws will help autonomous and driverless vehicles become a real option for private buyers and fleets. The UK is already established as one of the best places in the world to research and develop those vehicles, just as we are leading the way on real-world testing to ensure that cars meet emissions standards, to clean up the air quality in our cities. Through the Bill we will strengthen our position as a leader in the intelligent mobility sector, which is growing by an estimated 16% a year and which some experts have said could be worth up to £900 billion worldwide by 2020.

[Michael Fabricant (Lichfield) (Con)]

Despite the initial gloom that descended on me when I heard my right hon. Friend mention HS2, may I say how delighted I am to hear about the growth in autonomous drive technology? I congratulate him and the Government on promoting it, because there is no question but that the United Kingdom leads the way in that area, working alongside Japan. Autonomous drive will potentially increase the density of traffic on our motorways fourfold, so let us stick with it. I will resist the temptation to say that we would not need HS2 if we had autonomous drive cars—that would be the wrong thing to say, I think.

[Mr McLoughlin]

Whenever my hon. Friend intervenes I am never sure whether I regard it as helpful or not— I think on that one the jury is still out.

The Bill will also allow for the construction of the first commercial spaceport. A full range of viable options have been put forward, and we support those bids. The Bill will create the right framework for the market to select what the best location will be. We will legislate to encourage British entrepreneurs to make the most of the commercial opportunities of space. That will form part of the Government’s wider support for the UK space sector, and is aimed at raising revenues from almost £12 billion to £40 billion by 2030—around 10% of the global space economy.

We are also preparing for HS2, which is the biggest infrastructure scheme that this country has seen for a generation. The transformation of rail travel across Britain will free up capacity on the rest of the network, and rebalance our economy and economic geography. Before a single track has been laid, the HS2 factor is already having an impact. Blue-chip companies such as Burberry have chosen to move to Leeds, and HSBC has relocated its retail banking headquarters from London to Birmingham, citing HS2 as a significant factor in that decision. We have seen ambitious regeneration plans around places such as Curzon Street in Birmingham and Old Oak Common. Cities such as Leeds, Manchester, Crewe and Sheffield are preparing for phase 2.

[Michael Fabricant]

Will the Secretary of State give way on that point?

[Mr McLoughlin]

Will this be helpful or not?

[Michael Fabricant]

My right hon. Friend mentioned Curzon Street, and given that I fear there will be HS2, may I put down a marker? He will know that there is a cross-city line from Lichfield Trent Valley to Redditch. If HS2 eventually links up directly with the continent and does not go via St Pancras, it would be hugely advantageous if there were a halt at Curzon Street on the cross-city line, because that rail line runs immediately adjacent to the HS2 terminus.

[Mr McLoughlin]

Although my hon. Friend was against HS2, I am pleased that he is already thinking about how it can benefit his area and region. I join him in his partial conversion, and I will take that as a helpful intervention.

HS2 means that businesses will be able to access new markets, drawing their employees from much wider catchment areas, and perhaps for the first time they will consider moving offices away from London. When HS2 construction begins next year, we will be building something much bigger than a new railway; we will be investing in the economic prosperity of the next half century or more, training a new generation of engineers, developing new skills for a new generation of apprentices, and rebalancing growth that for far too long has been concentrated in London and the south-east.

[Carolyn Harris (Swansea East) (Lab)]

I am delighted to hear the right hon. Gentleman speak of such great plans for England, but what progress has he made with electrification to my constituency of Swansea East?

[Mr McLoughlin]

I am glad to say that I have made a lot more progress than was made in 13 years of the last Labour Government. To get to Swansea we must first get to Cardiff. We will get to Cardiff, and then we will get to Swansea, as has been promised—that work is on the way. The hon. Lady will travel on the Great Western line, and she will have seen all the work that has been going on. She will be a regular traveller through Reading, and she will have seen where £800 million has been spent on that scheme. We are doing a fair job in ensuring that her constituents, and those of my hon. Friend the Member for Gower (Byron Davies), who has often made the case for electrification to Swansea, will benefit from that.

[Lilian Greenwood (Nottingham South) (Lab)]

Will the Secretary of State give way?

[Mr McLoughlin]

I cannot resist.

[Lilian Greenwood]

Would the Transport Secretary like to confirm that electrification of the Great Western main line was set out by a former Transport Secretary in 2009, and will he also confirm exactly how delayed and over budget it is?

[Mr McLoughlin]

The hon. Lady says that electrification was set out in 2009. It might have been. [Hon. Members: “It was!”] One has to wonder why the Labour Government waited 12 years, until they knew they were about to lose office—in 2010—before coming out with plans. We are the ones who have carried them though. Yes, the costs have gone up—I very much regret that—but overall it is still a worthwhile project. Had it been started 15 or 20 years ago, it would not be costing what it is today. Anybody can lay out plans. In fact, Labour is sometimes very good at it, but it always fails on delivery and leaves it to us.

As I said, we will be firing up the north and the midlands to take advantage of this transformational project. After overwhelming support in the House, the Bill has now moved to another place, and I look forward to the Lords Select Committee. I am a strong supporter of remaining in the EU, but I am glad that I will no longer be able to get a high-speed train only from London to Paris or Brussels but that soon they will run to Manchester, Birmingham, Leeds and Sheffield. No matter how big the scheme, it is now vital for Britain’s national infrastructure. We will always remember that the vast majority of journeys are local, which means that local transport and infrastructure are no less crucial to preparing Britain for the future. In that regard, we back safer routes for more cycling and better buses.

We are devolving power to our cities and regions to give communities a much bigger stake in local planning. Transport is just one aspect of that. As we heard yesterday, the neighbourhood planning and infrastructure Bill will give communities a much stronger voice and make the local planning process clearer, easier and quicker so as to deliver local infrastructure and support our ambition to build 1 million new homes, while protecting the areas we value the most, such as the green belt. Our reforms have already resulted in councils granting planning applications for more than 250,000 homes in the past year.

But our plans go much further. We want to become a country where everybody who works hard can have their own home, so the Gracious Speech also featured the local jobs and growth Bill, which will allow local authorities to retain 100% of local taxes to spend on local services by the end of the Parliament. That will be worth an extra £13 billion from business rates. Councils have called for more fiscal autonomy; now they are getting it—a real commitment from central Government, real devolution and real self-sufficiency for regions across England. It is arguably the biggest change to local government finance for a generation. The Bill will give authorities the power to cut business rates, boost enterprise and grow their local economies. As announced in the Budget, we will pilot the new system in Greater Manchester and Liverpool and increase the share retained in London.

It is little wonder that Labour Members are giving up on opposition and seeking new roles in life. I offer the shadow Home Secretary my best wishes for his mayoral nomination bid. He obviously does not think he is going to be Home Secretary after the next general election, and nor do I.

[Mims Davies (Eastleigh) (Con)]

I am proud of this Conservative majority Government for looking at whole issues when it comes to serving our local communities, such as on infrastructure and business rates retention. Where we have no local plans, the Government are giving communities an opportunity to intervene and draw more up. Almost 50% of commuting in my area is out of Eastleigh, and standing traffic and air pollution are a big problem.

[Mr McLoughlin]

I know how important transport infrastructure and connectivity are in my hon. Friend’s constituency—we have discussed them many times—and I hope that our transport policies, such as those I have set out today, will help bring about some of the changes she wants.

Yesterday illustrated just how we are devolving power for local transport services. The bus services Bill will provide new powers for local authorities to improve bus services and increase passenger numbers. It will deliver for passengers, local authorities and bus companies, all working in partnership together to improve services. We will replace the disastrous quality contract scheme pioneered when Labour was in office—a failed theory that has never been successfully applied over the past 16 years.

Stronger partnerships will allow local authorities to agree a new set of standards for bus services, including branding, ticketing and how often buses run. Passengers want to know when their next bus is going to turn up and how much it is going to cost, so the Bill will mandate the release of fares, punctuality, routes and real-time bus location information. This will help the development of more transport apps, as it has already done in London, right across the country. There will be new journey planners and other innovative products to help passengers get the most out of their buses. This is about delivering for customers and empowering local communities.

[Ben Howlett (Bath) (Con)]

rose—

[Mr McLoughlin]

I give way, I hope for the last time.

[Ben Howlett]

My right hon. Friend is incredibly generous in giving way. Will he confirm that the buses Bill will enable communities in devolved areas such as mine in the west of England to integrate smartcard ticketing, which will end up encouraging more people to use buses for less?

[Mr McLoughlin]

I certainly want to see more use of smart ticketing, and I think the bus companies are now addressing the issue. There will be criteria on whether local authorities can apply for the franchising. We will need to see whether my hon. Friend’s area lives up to those priorities.

[Andrew Gwynne (Denton and Reddish) (Lab)]

Will the Secretary of State give way?

[Mr McLoughlin]

Is it about a train that runs only once a week?

[Andrew Gwynne]

In one direction only! I would also quite like to have a train service that goes into Manchester, but my question is about smart ticketing. Will the right hon. Gentleman knock some common sense into the transport planners who are trying to reinvent the wheel? We have had a bit of a farce in Greater Manchester, where many millions of pounds have been spent on trying to develop the technology of the “get me there” card, when we all already have some technology for that in our own pockets. It is called a contactless card. Why do we have to reinvent the wheel? Why can we not just use the technology that exists?

[Mr McLoughlin]

The hon. Gentleman talks about the contactless card, and I agree with him that there are such new technologies. That is a fairly new technology, and people in London see it used regularly nowadays. These are the areas on which we should be moving further forward, and I hope we will be able to make that happen.

This is all about delivering for customers and empowering local communities. New powers to franchise services will be available to combined authorities with directly elected mayors, just as they are in London, and private operators will be able to compete through the franchising system. Together, these measures demonstrate the Government’s ambition to deliver transport that helps the public to get around and get about.

The coalition Government and this one nation Conservative Government have a record to be proud of: investment up; projects under way; journeys getting easier; backing growth, jobs and new technology; helping local people get the homes and the infrastructure they need; striking a fairer deal for local government; giving devolution to local regions; and making Britain a leader. A stronger economy is at the heart of the Gracious Speech, and transport infrastructure is playing its part.

[Lilian Greenwood (Nottingham South) (Lab)]

I echo the sentiments of the Transport Secretary on the loss of air flight MS804 to Egypt. Our thoughts are with the family and friends of the passengers and crew while we await the outcome of the investigations that are now under way.

Although we are not debating the Queen’s Speech that I would have wanted, it is fitting to start these debates on transport. The challenges facing this country’s transport networks are profound, and there are some important cross-party points of agreement for meeting them. I welcome the Transport Secretary to his place, but I must point out that his speech was a timely reminder of the need for Ministers to mind the gap between their rhetoric and reality.

The Secretary of State said that the Government were delivering investment, but let us look at the real Conservative record. We see bus and rail fares up by a quarter, billions cancelled from road investment schemes, new projects under threat, the hard shoulder stripped from the motorways, the wheels falling off the “cycling revolution”, a £12 billion maintenance backlog on our local roads, and rail punctuality at its worst for a decade—and, of course, the Government promised a northern powerhouse but inflicted a northern power cut instead.

That said, we welcome the Government’s stated intention to introduce new local transport powers, extending to the entire country the ability to introduce the successful models employed in the capital. I am sure that the whole House will want to extend its congratulations to Sadiq Khan, the former Member of Parliament for Tooting, who is now the Labour Mayor of London. It is, perhaps, a little-known fact that the new Mayor is the son of a bus driver. The proposal in the bus services Bill to extend London-style bus powers to the rest of the country is long overdue, and it is possibly no coincidence that the Transport Secretary did not even mention buses until 27 minutes into his speech. These plans could, of course, have been made in the last Parliament, but Ministers consistently opposed any proposals for the tendering of bus services to reverse the disastrous consequences of the Transport Act 1985.

[Mr McLoughlin]

I join the hon. Lady in congratulating Sadiq Khan on his election. May I ask whether she agrees with what he said in 2009, when he was a Transport Minister? He said then:

“one reason we are able to invest record sums in our railway service is the revenues that the franchises bring in and the premiums that they pay”.—[Official Report, 1 July 2009; Vol. 495, c. 430.]

[Lilian Greenwood]

I was very pleased that there was record investment in our railways under the last Labour Government. There are so many things that the Transport Secretary forgets to talk about. Every week I travel up to the midlands on the midland main line via St Pancras railway station; it has been transformed, and was transformed under a Labour Government, but he never mentions that.

I welcome the Transport Secretary’s damascene conversion to the cause of bus regulation, which might be described as a screeching U-turn. However, as always with this Government, the devil will be in the detail. We have yet to see the text of the bus services Bill, and it is a shame that it was not published in time for today’s debate. I remind Conservative Members that last year’s Queen’s Speech also promised a buses Bill. Madam Deputy Speaker, you wait five years for a Conservative Queen’s Speech that mentions buses, and then two come along at once—even if they are running late. We will subject the Bill to close scrutiny. It is vital for it to provide a legal framework that protects local authorities from eye-watering compensation claims, and to safeguard working conditions.

--- Later in debate ---

[Lilian Greenwood]

My hon. Friend makes a very good point, and it is no surprise that people in the city of Sheffield reject this Government completely.

The north was a powerhouse long before the Chancellor arrived, and it will be a powerhouse long after he has gone. On HS2, the Government’s delivery has been anything other than high speed. A decision on the route of phase 2 has been delayed by two years. I would like to remind Ministers of a Conservative party press release issued in Yorkshire on 21 April 2015. They should not worry—it is not about campaign bus expenses. No questions from local media were allowed, and it is not difficult to see why. The press release said:

“Phase Two of HS2 will also start construction from the northern ends, with the Leeds to Sheffield Meadowhall section made a priority to open even before the line as a whole opens.”

Those plans to build HS2 from the north have already been dropped—if they ever existed. Once again, we are faced with a Conservative election promise that has been broken.

Over the last fortnight, it has been reported that phase 2 is under review and that prominent critics of HS2 have been invited into the Treasury to set out the case against the project. Stations at Sheffield and Manchester airport could also be dropped, along with the Handsacre link—which would allow high-speed trains to run to Stoke and Stafford—even though the Secretary of State has given specific assurances in the House on the link’s future.

There are specific questions that the Government must still answer. If those reports have no basis, why did the Minister for Small Business, Industry and Enterprise say on Sunday:

“We need to...sort this out or Sheffield might miss”

out on HS2? Has what the Government call the “appropriate third-party funding contribution”, which the Transport Secretary said Manchester Airport station was dependent on, been agreed?

Two months ago, the House voted overwhelmingly in favour of HS2 on a specific understanding of the project. Of course costs must be kept under control, but it would be totally unacceptable if the plans for high-speed rail in the midlands and the north were downgraded by some unaccountable and secretive review.

Let us not forget the Government’s record—if it can be called that—on aviation. In 2009 the Prime Minister famously said:

“The third runway at Heathrow is not going ahead, no ifs, no buts.”

By last July, that had morphed into:

“The guarantee that I can give...is that a decision will be made by the end of the year.”—[Official Report, 1 July 2015; Vol. 597, c. 1473.]

It is difficult to take the latest pledge to report by this summer seriously, but perhaps the Government will surprise us.

While Ministers are failing to deliver on national transport schemes, local services are being severely squeezed. More than 2,400 bus routes have been downgraded or cut altogether. The Rail Minister said at Christmas:

“Our plan for passengers is improving journeys for everyone”,

but the reality is that commuters are being priced off buses and trains, and some season tickets cost £2,000 more than in 2010. Punctuality is at its worst in a decade—worse than when the network was still recovering from the Hatfield disaster. Ministers are considering further cuts to Network Rail’s maintenance plans.

The pothole crisis on local roads gets worse by the day, after local upkeep budgets fell by 27% in real terms. Even on walking and cycling—an area where the Prime Minister has a personal interest—I am worried that Ministers might have misinterpreted their brief. That can be the only explanation for publishing a cycling and walking investment strategy that is so utterly pedestrian. Targets for increasing walking journeys have been inexplicably dropped. I hope the Secretary of State will take advantage of national walking month to reverse that decision.

A year ago the Prime Minister said it was his “aim to increase spending” on cycling further, to £10 a head. However, analysis of spending figures obtained by my hon. Friend the Member for Cambridge (Daniel Zeichner) shows that Government funding for cycling is due to fall to just 72p per head outside London. It is clear that the Government have produced a cycling and walking investment strategy with no investment, and the promise to raise spending on cycling has been broken.

[Mr McLoughlin]

One of the problems of going first and not being able to follow is that the hon. Lady is asking a number of questions that I am unable to answer. However, I find it rather odd that she talks about capital investment, when David Miliband said in the 2010 general election:

“we’re going to halve the share of national income going to capital spending”—

that was on Radio 5 Live in July 2010. That was what the Labour party’s plans were. Our plans have been to massively increase investment in public transport and transport across the piece.

[Lilian Greenwood]

Would it not make a change if the Secretary of State actually took some responsibility in this place for the past six years and for the Government’s failings?

Across the country, the Government are failing to deliver the investment we need and to support local, sustainable transport. However, there can be no doubt that the situation would be even worse if we left the European Union. We are on the verge of making a decision that will affect countless generations. Europe has made real improvements to the quality of journeys in the UK and, from it, to the continent and beyond.

Although we need urgently to move to real-world testing, overall emissions from new vehicles have been reduced by up to 95% in the last few years alone, thanks to European standards. The EU is also a vital source of funding for national and local projects. Whether it is Crossrail, new intercity express programme trains or major ports upgrades, there is often European funding behind the transport improvements we desperately need.

If we voted to leave, airlines would lose their right to access the American market, spelling chaos for jobs in the aviation industry. Some of our largest car and train manufacturers have made it clear that inward investment and jobs depend on access to the single market.

The transport case for staying in the EU is overwhelming, as is the case in other policy areas. I hope that when we plan transport services over the coming decades, we do so on the basis of a renewed mandate for our membership of the European Union.

--- Later in debate ---

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

May I associate the SNP group with the comments made by Secretary of State and the shadow Secretary of State about the EgyptAir incident?

I will focus on three themes in my speech: first, the measures that we in the SNP welcome, at least in their outline descriptions; secondly, the areas in which we think that other options and measures could have been and, indeed, should be incorporated—it is never too late for Ministers to pay heed to and take forward such ideas, so I hope they are listening carefully—and, thirdly, the actions, examples and lessons to be learned if we are to take the steps required to deliver for the people of the nations of the UK.

First, I am sure the Secretary of State will join me in welcoming Fergus Ewing MSP to his new position as Cabinet Secretary for Rural Economy and Connectivity, and Humza Yousaf MSP to his new position as Minister for Transport and the Islands. I want to put on record my thanks to the former Cabinet Secretary Keith Brown MSP and the former Minister Derek Mackay for their work, some of which I will mention. They are both now performing new roles in the Scottish Government Cabinet, and I am sure that UK Government Ministers agree that they worked positively with them during their time in office.

[Mr McLoughlin]

May I echo what the hon. Gentleman has said? I heard about the new appointments just before I came into the Chamber. I very much hope that we can work together positively on a number of issues that affect both Scotland and the rest of the United Kingdom.

[Drew Hendry]

I am sure that where there is a progressive movement, that will be the case.

I want to start with those areas on which there is common purpose, and there are some innovative transport measures—or at least promises of them. That said, if such measures are to gain support, the rhetoric will need to be followed by an inclusive vision that benefits all the nations of the UK. An area where that is not yet clear is investment in further research on autonomous vehicles. Obviously, safety implications and their deployment will need to be considered.

Such investment is welcome, but it will be meaningless to most of the UK nations if it is not supported by the necessary investment and innovation to deliver a truly universal mobile communications network. Let us not yet again take an approach through which benefits are seen only in some urban areas of the UK. Future network licensing deals should include a requirement, in the conditions of the contracts, for rural areas to be prioritised. These areas all across the nations of the UK have suffered for decades because of ill-thought strategy and, indeed, ignorance about the needs of those outside the largest cities.

Linked closely to that is the need for broadband infrastructure. The SNP has campaigned for a universal service obligation for broadband, so we are pleased that that will be included in the digital economy Bill. The Scottish Government are committed to extending superfast broadband to 100% of premises—all businesses and homes. When I recently asked the Leader of the House in the Chamber to match that ambition, he said that he did not know how it could be done. I hope that the UK Government have, in the past few weeks, figured this out and that they will roll out action to match their words. If they do, it will indeed be positive news.

Putting the UK National Infrastructure Commission on a statutory basis is also welcome, but only if it looks beyond the old horizons and prioritises infrastructure for all the nations of the UK. To achieve that, we need more ambition on the development and deployment of electric vehicle infrastructure, so I agree with the remarks of the hon. Member for Nottingham South (Lilian Greenwood) about that. That and investment in autonomous vehicles must go hand in hand. It will be good if that happens, but let us see the detail because, once again, the Government should demonstrate that that matches the ambition of what they are saying.

We are entering a point in our development where, counter-intuitively, roads might actually provide another vision for the future of green transport, and I would like such an opportunity to be explored further by the UK Government. On green travel—indeed, on greener travel measures in general—we are seeking more ambition from the UK Government.

On active travel, we welcome the fact that the recent Budget did not remove salary sacrifice schemes—that will aid the promotion of cycling—but there is a huge opportunity for further investment in cycling, which would lead to healthier outcomes for people and healthy economic benefits. I urge Ministers to reconsider the lack of a strategic UK Government commitment to accelerating cycling infrastructure. Where is the promised five-year strategy and why, given the stated objectives in the cycling and walking investment strategy, is that not a headline at this time? We need greater vision, greater urgency and proof that words are equal to a true commitment.

The SNP Scottish Government are investing £l billion annually in public transport and other sustainable transport options to encourage people to get out of their cars. Since 2011, Scotland has built 190 km of cycling and walking paths to match the commitment to healthier lives for the people of Scotland, where the number of people cycling has increased by about a third since 2003.

When the Secretary of State mentioned HS2, he said, if I am quoting him correctly, that he looks forward to it going to Birmingham, Sheffield, Leeds and Manchester. Ominously, however, he omitted Scotland from that list. The Scottish Government have committed to working in partnership with the UK Government on HS2, but the UK Government must demonstrate their commitment. Will he now confirm that that is correct and commit to the line going to Scotland, with the full investment needed?

HS2 is not the only possibility for cross-border rail development. The Borders rail link—a programme delivered on time and under budget by the Scottish Government—is now open for investigation for an extension all the way to Carlisle. The Scottish Government have said that they will support a feasibility study. Will the UK Government match that ambition by agreeing to consider whether that can be realised for the people on the borders? I hope so.

On investment in green measures, there is a future for green travel for surface users—through active travel and electric developments in relation to road and rail, especially if powered by renewable sources—but there remains no vision from the UK Government on alternative fuels for air travel. Once again, the UK is stuck in the vapour trail on this issue. Oslo has already become the world’s first airport to offer sustainable biofuels to all airlines—Lufthansa, SAS and KLM have already signed up to that—but there is no such commitment in the UK. The UK Government can change that, and I again urge Ministers to include aviation in the renewable transport fuels obligation.

We welcome the UK Government’s commitment to do more work on a UK airspace strategy. Such a commitment is overdue, and we ask that action in this area is accelerated to address the deficit of more than 40 years. If we continue to ignore that, there will be an increased risk of delays, higher carbon use and a damaging impact on commerce. Tackling this, and coming into line with the European Commission’s single European sky initiative, offers an opportunity to boost the UK economy and benefit all the UK nations.

Speaking of things up in the air, although nobody will be shocked by the lack of a commitment to deciding on airport expansion, it remains the jumbo in the room. I know that our frustration is actually shared by Government Ministers. I am certain that, freed from internal pressures, they would have made a decision by now, but they remain paralysed by orders arising from internal party politics.

Madam Deputy Speaker, you were in the Chair on the occasion when I overran the two minutes for my response to a statement on yet another delay on airport expansion, because I was trying to list the broken promises in relation to the many dates by which Ministers and, indeed, the Prime Minister had promised there would be a full and final decision. Such promises have been broken over and over, but when someone hears that long catalogue of missed opportunities for leadership, the frustration and anger caused by these delays immediately becomes understandable. You will be glad to know that, rather than repeat that exercise, I will just quote the Secretary of State’s words from way back in October 2012. He said:

“in the south east the runways are filling up. And the jets are circling in our skies. That’s hitting our prosperity. It’s bad for the environment. It’s putting off investors. It’s costing jobs. And it’s holding Britain back.”

He was right, but that was nearly five years ago. In spite of those sage words, the runways are now fuller, more jets are circling, the environment continues to be damaged and investors have indeed been put off. Who knows how many jobs that has cost?

[Mr McLoughlin]

Given that the hon. Gentleman has now had time to study the Davies report and that he is so clear in his own mind, will he tell us which option he prefers?