Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Robert Buckland

Monday 17th March 2014 Commons Chamber

[Mr Hammond]

In almost all cases—perhaps I can say in all cases—the net additional cost of military operations that is recoverable from authorities that have lead responsibility under the Civil Contingencies Act 2004 will be 100% funded under the Bellwin formula, in accordance with the statement that the Secretary of State for Communities and Local Government made to the House about the increase in the percentage recovery rates to 100% to cover this emergency.

[Mr Robert Buckland (South Swindon) (Con)]

5. What plans he has to increase employment opportunities for the spouses of armed forces personnel.

McNulty Report and West Coast Rail

Debate between Lord Hammond of Runnymede and Robert Buckland

Thursday 19th May 2011 Commons Chamber

[Mr Hammond]

Thank you, Mr Deputy Speaker, for that very helpful guidance.

I am grateful for the hon. Lady’s comments about Sir Roy, who was of course appointed by my predecessor. I very much hope that we can take forward the rail reform agenda with a degree of cross-party consensus, which would be very helpful—realistically, it is asking a great deal to expect that we will agree on everything.

The hon. Lady blames “structural fragmentation” for the high cost of our railway. She obviously has not yet had a chance to read the full report, but when she does, she will see that Sir Roy identifies many causes. However, she seems to be displaying the famous Labour disease of collective amnesia. She might recall the inconvenient facts that her Government created Network Rail a decade ago, and that her Government spent 13 years in power doing nothing at all about the structural fragmentation of which she now complains.

The way forward that passengers and taxpayers would expect us to take for our railway is one of evolution rather than revolution, although that evolution must be rapid. I have taken a conscious decision, which I conveyed to Sir Roy, that I would like to see how far we can go within the existing railways legislative framework rather than spark an ultimately unproductive and, for passengers, entirely unhelpful political debate over the next couple of years on major railway legislation. The idea of Sir Roy McNulty’s agenda is to take forward significant reductions in costs in the railway within the existing legislative framework.

The hon. Lady asked about track-train integration. As she will know, Sir Roy has suggested that we pilot closer integration between train operators and the devolved Network Rail infrastructure operations on the different routes and regions. Sir Roy suggested that the railway is not homogeneous, and that we should go forward at different paces on different sections of our railway. I agree with that general principle. We will look very carefully at Sir Roy’s specific proposals and suggestions on track-train integration, and incorporate a response into the wider rail reform proposals with which I intend to return to the House before the end of this year.

The hon. Lady welcomed the fares review, and I am grateful to her for that. She asked whether the review is a cover or code word for increases in prices, but I say this to her: the Government want an end to the era in which fares rise faster than inflation, but we can do that only by delivering Sir Roy’s savings and by getting the costs of our railway back under control. That prize is within our grasp if we progress Sir Roy’s agenda. To reassure her, I have no intention of ending the system of regulated fares. That is not suggested by Sir Roy, and I know not where she got the idea that I was in favour of it.

The hon. Lady asked me to try to take a collaborative approach with the unions on labour productivity. I would be delighted to do so if an opportunity arises. I was slightly heartened by what I heard Bob Crow say on the radio this morning, although I may have heard only a part of the total interview. He said he was willing to look at proposals for more efficient working practices, which is at least better than his saying that he is not willing to look at such proposals. We must be clear that all players in the industry must change if we are to harvest those savings. The prize for the unions is also big. The railway is a growing industry—it is not in decline, as it was before privatisation, but growing rapidly and robustly—and huge increases in passenger numbers are projected. If we can deal with the problems of the cost base, we could have a hugely successful business for the benefit of British fare payers and taxpayers.

The hon. Lady has won me a small bet by referring to my strategy on west coast franchising as being in “chaos and confusion”, so I am grateful to her for that. In fact, I have today announced an example of open government. We could have progressed with the draft invitation to tender that I published today without further consultation, but I felt that because there has been a material change from the documents that we circulated at the time of the January consultation, it is right to consult again. That introduces a three-month delay, and I do not want the franchise changeover to come immediately before the Olympics, which necessarily means a delay until the latter part of next year, which gives us the opportunity to complete the integration of the Pendolino fleet. We have taken a set of careful and interlinked decisions on the timetable for that franchise, and I hope that, on reflection, she welcomes the approach that we have adopted.

The hon. Lady asked about First Great Western. It is of course true that First Great Western has decided to exercise the break clause that exists in its franchise, which allows it to surrender it in 2013 rather than in 2016. However, before she adopts too strident a tone, she should remember who let that franchise with that break clause in it. First Group has exercised the rights that her Government gave it in that franchise. She might also reflect on the fact that her Government let the GNER franchise and the NXEA franchise before she gets too strident about them as well.

The hon. Lady mentioned profit in the railway. I do not consider “profit” to be a dirty word. I consider that proper incentives and profit-making companies delivering efficient public services can be effective ways of delivering for the taxpayer and the passenger. This Government will introduce a profit-sharing arrangement in new franchises, the like of which does not appear in the current crop of franchises, which her Government let, and the like of which would have prevented situations such as the one on the Trans-Pennine franchise, where profits of 30% on revenue are being earned. We will ensure that the taxpayer gets a fair share of any unanticipated profits that are earned over the lifetime of the franchise. I hope that we all have the same objective—the delivery of a world-class railway service that is affordable for taxpayers and for fare payers. However, to deliver that, we have to drive out cost-effectively and, after Members and others have heard what I have had to say and what the hon. Lady has had to say, it will be for them to decide who will most effectively be able to achieve that objective.

[Mr Robert Buckland (South Swindon) (Con)]

Does my right hon. Friend accept that for many Swindon residents travelling to and from London to work during peak hours has resulted in eye-wateringly high fares for far too many years? What hope can he offer them for the future of peak-time rail fares?

[Mr Hammond]

There are two things that I can say to my hon. Friend. First, if we do not address the challenges that Sir Roy has set out, there will be only one direction of travel—worse services and higher prices. That is not acceptable to anybody in this House or in the country.

I want to make a point specifically about commuter fares and season tickets. At the moment, we have a very inflexible system of season tickets. People buy a season ticket which assumes that they will travel in peak hours every day. Increasingly, people have opportunities for flexible working patterns—indeed, the Government are committed to giving people greater opportunities for flexible working patterns. Smart ticketing technology will allow us to be able to start to recognise people who have a pattern of work that allows them to work at home one day a week or a fortnight, instead of their having to pay the rail fare even though they are not using the railway. That technology can help us to address some of the perverse incentives that season ticket holders currently have to use the railway in peak time when perhaps they do not always need to do so.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Robert Buckland

Thursday 27th January 2011 Commons Chamber

[Mr Hammond]

The number of bids exceeded the available resources for the second wave of plugged-in places pilot schemes. All the bids were evaluated, and those that represented the greatest value for money were allowed to proceed. The promoters of the unsuccessful bids have been debriefed by the team in the Department, so they will have a detailed understanding of why their bid, on this occasion, failed. I hope that they will be encouraged to resubmit a bid in the next wave.

[Mr Robert Buckland (South Swindon) (Con)]

2. What plans he has for reform of the rail industry; and if he will make a statement.

[Harriett Baldwin (West Worcestershire) (Con)]

8. What plans he has for reform of the rail industry; and if he will make a statement.

[Mr Buckland]

Peak-time and season-ticket commuters from Swindon to London on the main line have had to face significant fare increases this month. Will the Government’s new rail franchising reform programme put special emphasis on the need for greater capacity and fairer rail fares?

[Mr Hammond]

We are committed to fair rail fares. Unfortunately, to support the rail investment programme, we have had to project faster-than-inflation increases in fares for the next three years. However, let us be clear: we have to get the cost of our railway down so that the burden on taxpayers and fare payers can be alleviated in future.

--- Later in debate ---

[Mr Hammond]

Of course the proposals have been risk-assessed. They have been around for more than two years, since before the general election, and there is a long slow-burning fuse behind them. They are now out for consultation, and the hon. Gentleman can and, I am sure, will make forcefully the case for retaining the station in Stornoway.

[Mr Robert Buckland (South Swindon) (Con)]

T5. Can the Minister give us a likely date for the decision on electrification of the Great Western line to Swindon and beyond?

Rail Investment

Debate between Lord Hammond of Runnymede and Robert Buckland

Thursday 25th November 2010 Commons Chamber

[Mr Hammond]

The hon. Lady tests my geography of the north-west. If she is referring to the cord that passes from Manchester to Newton-le-Willows, rejoining the west coast main line, that will be in 2013. The rest of the electrification programme will be rolled out between 2013 and 2016.

[Mr Robert Buckland (South Swindon) (Con)]

I welcome the Secretary of State’s whittling down of the options for the great western railway, but we in Swindon are waiting anxiously on the platform for a final decision on the electrification of the main line. May I urge him to make a decision that will benefit Swindon and the west country—in favour of electrification—and hold him to his promise to make a decision early in the new year?

[Mr Hammond]

As I have already said, that is my expectation, but, as hon. Members will understand, when complex legal, technical and commercial decisions are to be taken, we have to do the homework before we make the announcement—unlike the previous Government.