Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Edward Timpson

Thursday 23rd June 2011 Commons Chamber

[Mr Philip Hammond]

I understand the disappointment felt by Bombardier and, indeed, the anxiety felt by the people of Derby about that decision, but before the right hon. Lady delivers me a finger-wagging lecture perhaps I can remind her of a couple of points. Her Government designed and initiated the procurement process, and some Members may remember that they used to call it Thameslink 2000. We inherited it 16 years late and £600 million over budget, and it fell to us effectively to open the envelope. The procurement was carried out under the terms of the EU directive, and the Siemens bid offered the best value for money on the criteria for appraisal set out in the original competition that the previous Government launched. We have to comply with EU law, and I do not have the power that she suggests I have.

I firmly believe that free trade and open markets are the best way for us to proceed, but I believe also in the concept of the level playing field, and there is a case for looking at the way in which some of our neighbours and competitors operate the EU procurement directive, because it seems quite astonishing that, complying with that directive as we do, they have managed to achieve very high percentage penetrations of French-built trains on the French railway and of German-built trains on the German railway.

[Mr Edward Timpson (Crewe and Nantwich) (Con)]

T6. As my right hon. Friend has just said, the previous Government tied the hands of this Government on such decisions, including the Thameslink contract, which, as he is aware, affects my constituency. What can we do to ensure that British business does not lose out as a result of this false economy of going for cheap foreign contracts that leave us picking up the domestic dole bill?

[Mr Hammond]

I understand the concern of people in Crewe as well, of course, but we must not fall into a trap. The Siemens bid clearly offered the best value for money, and we must not lose sight of that fact. The wider issue of how we operate the procurement directive, and of how we work with the UK supply chain in industries such as rolling stock construction, is something that we need to review, and I am in discussions with my right hon. Friend the Business Secretary about how we do that.

McNulty Report and West Coast Rail

Debate between Lord Hammond of Runnymede and Edward Timpson

Thursday 19th May 2011 Commons Chamber

[Mr Hammond]

A good old Labour contribution from below the gangway! Sir Roy McNulty did look at the options of greater integration, but the hon. Gentleman might not be aware that things have moved on a little in Europe since the last time he read the manual. European law on railways has evolved, and the separation of train operations from track operations is now mandated across the European Union. While much of the railway is still in public ownership, it is not integrated in the way that he may imagine.

Sir Roy’s clear conclusion was that a monolithic UK-wide system is not the direction of travel and that more devolution of responsibility and autonomy to route networks is the way forward.

[Mr Edward Timpson (Crewe and Nantwich) (Con)]

Although I understand the reasons behind the delay in the decision on the west coast main line franchise, can my right hon. Friend reassure my constituents that the decision will include provision for the train operators to play a more active role in the future of stations, especially in their infrastructure and presentation to passengers?

[Mr Hammond]

Yes, I can give my hon. Friend that assurance. The proposal that we have put forward—as he will see when he has a chance to look at the invitation to tender—is that the train operators should be granted a peppercorn rent lease of the station for the duration of the franchise. We also propose a revised residual value mechanism, so that train operators have an incentive to invest capital in station infrastructure throughout their franchises with the confidence that they will be reimbursed a fair value for that investment at the end of the franchise.

Intercity Express and Rail Electrification

Debate between Lord Hammond of Runnymede and Edward Timpson

Tuesday 1st March 2011 Commons Chamber

[Mr Hammond]

I am looking at my map, and, as the Minister of State, Department for Transport, my right hon. Friend the Member for Chipping Barnet (Mrs Villiers) reminds me, it is a matter for the Welsh Assembly Government to specify services on the Wales and west franchise.

[Mr Edward Timpson (Crewe and Nantwich) (Con)]

Will my right hon. Friend ensure that, should the preferred consortium for the IEP contract be unable to deliver all that is has offered, other bidders in the procurement process, including Bombardier Transportation, which has a site in my constituency, will be given due and proper consideration in any future procurement that might result from such a situation? Will he also ensure that its strong, advanced technical expertise is taken into account?

[Mr Hammond]

My hon. Friend makes a plea for Bombardier, which has a site in his constituency. Bombardier is involved in programmes for the delivery of other trains in the United Kingdom, and I think that it has a very bright future in the UK train market. The IEP project is a train availability contract to supply trains, ready for use and fully maintained. Hitachi or the Agility consortium will therefore be entering into an obligation to deliver specified numbers of trains ready and available for use in accordance with that contract, and it will be a matter for them to ensure that those trains are made available.

Severe Winter Weather

Debate between Lord Hammond of Runnymede and Edward Timpson

Monday 20th December 2010 Commons Chamber

[Mr Hammond]

I can tell the hon. Gentleman that people who are sleeping on airport floors and who are having their travel plans disrupted are not helped by such ridiculous rants from him and his colleagues. Those people need a calm, measured and considered response to the problems, which is what the Government are giving. This is an extreme weather event, and this Government will do better than the previous Government did last year.

[Mr Edward Timpson (Crewe and Nantwich) (Con)]

In his statement, the Secretary of State touched upon the steps that are being taken to ensure that health services are well prepared throughout this cold snap, but he will also recall that last winter, a number of A and E departments were forced to close because of the severe weather, including ones close to my constituency. What discussions has he had with the Department of Health to ensure that the emergency services, and particularly the ambulance service, are given robust support to ensure that they can continue to give a full service throughout this difficult time?

[Mr Hammond]

I have been in discussion with my right hon. Friend the Health Secretary. As I understand it, this morning, there were no major problems across the NHS—all NHS services are operating reasonably well. Of course, there have been isolated problems of getting staff into hospitals. In some cases, including in my county, Surrey, local 4x4 owners have volunteered to drive staff to A and E departments. Such voluntary action will help to reinforce the resilience of the NHS. Ambulance services are coping well at the moment, but if there are difficulties, the military stands ready to provide support with 4x4 vehicles if it is needed.