High Speed 2

Stephen Hammond Excerpts

Wednesday 25th March 2015 Westminster Hall

[Graham Stringer]

The Transport Committee is in favour of HS2 and has not been quoted. The experience from French cities is that it depends on how much effort a city makes. I expect that the creativity of Leeds, Manchester and Sheffield will produce an experience much like that of Lille, where there has been real economic benefit.

[Stephen Hammond (Wimbledon) (Con)]

I want to support the hon. Gentleman’s point. The history of Japan presents a salient experience. Far from producing a gravitational pull to the centre, what it has done is create a gravitational pull to where the high-speed rail has been built, on parkway stations.

[Graham Stringer]

I agree with the hon. Gentleman. I will finish with two quick points. Hon. Members have said that we should focus on east-west links in the north of the country, but actually it is much more likely—this is already happening—that we will get those links if we have a strong north-south link.

Finally, people have quoted the cost-benefit analysis, but the House of Lords Committee did not look at its own evidence well. Professor Dieter Helm, professor of energy policy at Oxford, said:

“A moment’s reflection indicates how weak such techniques are when it comes to deciding how much infrastructure to provide. For infrastructure typically comes in systems, not discrete bits. Choosing what sort and level of infrastructure to supply is not a marginal decision. It is often about one system or another. Marginal analysis—as the core of cost-benefit analysis—has little obvious to offer.”

High Speed 2 has a great deal to offer to both the north and the south of the country.

Oral Answers to Questions

Stephen Hammond Excerpts

Thursday 22nd January 2015 Commons Chamber

[Mr Hayes]

Road maintenance is just short of £1 billion a year. This Government are not neglecting road maintenance and we are certainly not neglecting roads—[Interruption.] I know the hon. Gentleman thinks that I am smooth, but I am never airbrushed. This Government’s commitment to roads is unprecedented and I recommend to the Opposition that they recognise that such infrastructure investment is something on which there should be consensus. Unless there is consensus, we will not build the confidence that is necessary to get the investment that is in the national interest.

[Stephen Hammond (Wimbledon) (Con)]

I share my right hon. Friend’s enthusiasm and confidence about the future under the strategy, although perhaps I do not express it so eloquently. One of the most exciting elements of the strategy is the introduction of smart motorways. Will he say a little about how the Government’s plans for that are going?

[Mr Hayes]

My hon. Friend will know that the way in which people drive, the vehicles they use and the interface between the driver and the road will change. That is already happening with smart motorways. We have been innovative in the work we have done on that and there is more to be done, but what is certain is that the Government need to consider all the technological changes that will inform the alteration in how people use roads in the way that he implies. The smart motorways programme is important, but it is also important that we articulate that message more clearly. I know that the Secretary of State will be saying more about this over the coming weeks and months, and I will be too, because I think it is important that people understand the opportunity that lies ahead of us.

Rail Network (Disruption)

Stephen Hammond Excerpts

Monday 5th January 2015 Commons Chamber

[Mr McLoughlin]

No.

[Stephen Hammond (Wimbledon) (Con)]

I join my right hon. Friend in congratulating Network Rail staff on the extraordinary maintenance programme and welcome his swift action in calling Network Rail to account. Will he assure the House that when Network Rail reports to him it will, first, ensure that the systemic failure at King’s Cross is not repeated and does not become endemic across the industry; and, secondly, that, as more services become operational, punctuality is improved?

Road Investment Strategy

Stephen Hammond Excerpts

Monday 1st December 2014 Commons Chamber

[Mr McLoughlin]

I want to see all parts of the United Kingdom well served. A huge amount of investment is already planned on the roads leading to Plymouth and that is very important.

[Stephen Hammond (Wimbledon) (Con)]

I welcome the announcement of the first ever roads investment strategy, which I know is the culmination of several years of careful preparation by my right hon. Friend. Does he agree that it is the five-year funding deal that is likely to be transformational and to open up efficiency opportunities in both procurement and the supply chain, which will ensure that these schemes can be delivered?

[Mr McLoughlin]

Yes, and may I say to my hon. Friend how grateful I am to him as although he did not specifically deal with this issue, we did discuss it in general when he was in the Department? He is absolutely right in what he says; we have seen that as far as the railways are concerned—the long-term planning for the rail investment strategy is very important. Likewise, the construction industry will be welcoming this statement as far as its long-term planning is concerned, because it also means that the industry should be able to take on apprentices and plan and train right.

Oral Answers to Questions

Stephen Hammond Excerpts

Thursday 23rd October 2014 Commons Chamber

[Mr McLoughlin]

As Secretary of State for Transport I have seen franchises being told to convert first class carriages to standard class carriages so that more people can travel. I think I am the first Secretary of State to do that. It was not done by any previous Labour Secretary of State, so I am very pleased about that. On Pacers, I entirely agree with the hon. Lady. We must look for better services for those people who are currently served by Pacers, possibly by improving and redesigning the Pacers, which some of the companies are looking at. It is certainly something that I am interested in.

[Stephen Hammond (Wimbledon) (Con)]

I congratulate my right hon. Friend on the record that he set out to our hon. Friend the Member for Gloucester (Richard Graham). If he looks at the restarted franchise, which sees more passengers being put right at the heart of the process, more towns likely to come on to the network, and more seats available, does he agree that far from being yesterday’s industry, this is likely to be the industry of tomorrow and these trains are likely to accelerate?

[Mr McLoughlin]

I start by thanking my hon. Friend for all the work he did in improving and getting franchises back on the road after the difficulty that we inherited when we first entered the Department two years ago. He made a great contribution to that. I completely agree with him. As I said, all the meetings I have with various local authority leaders now are about increasing capacity and providing more and better services. The train operating companies and the rolling stock leasing companies all have roles to play in doing that.

British Transport Police Authority (Triennial Review)

Stephen Hammond Excerpts

Monday 14th July 2014 Written Statements

[The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)]

My noble Friend, the Minister for Transport, Baroness Kramer, has made the following ministerial statement:

I am today publishing the part 1 report of the triennial review of the British Transport police authority (BTPA).

The BTPA is the non-departmental public body (NDPB) responsible for ensuring an efficient and effective British Transport police (BTP) force for rail operators, their staff and passengers.

The review has been progressed in two parts. Part 1—the core triennial review—has considered the continuing need for the BTPA’s functions and the case for it to remain a NDPB. It has also looked at the control and governance arrangements in place to ensure that the BTPA is complying with recognised principles of good corporate governance.

Part 2 of the review considers a wider range of issues raised by the industry about the effectiveness of the BTPA in the discharge of its functions and the industry’s ability to influence outcomes.

I am pleased to announce the conclusion of the part 1 review and the publication of the report.

The report concludes that the functions of the BTPA are still necessary, that it remains the right body for delivering them and that the BTPA should remain a NDPB.

The report also concludes that the overall level of compliance with good practice on corporate governance is good, with just a few omissions and weaknesses which should be capable of being quickly addressed. The Department for Transport will be taking these recommended measures forward in discussion with the BTPA over the coming months.

I would like to thank Peter Murphy for carrying out a thorough analysis of the BTPA and its governance arrangements, and the BTPA for their assistance as well as all the other stakeholders who were involved during the course of the review including those who were part of the challenge group which was set up to oversee the review.

The review was conducted in accordance with Cabinet Office guidance (Guidance on reviews of non-departmental public bodies, June 2011).

The report is available on gov.uk and I have made available copies in the Libraries of both Houses.

Local Sustainable Transport Fund

Stephen Hammond Excerpts

Monday 14th July 2014 Written Statements

[The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)]

My noble Friend the Minister for Transport, Baroness Kramer, has made the following ministerial statement:

I am today announcing the successful bids for the local sustainable transport fund 2015-16 revenue funding competition. Almost all eligible local authorities submitted a bid for funding, and 44 were successful. The successful schemes will deliver a range of sustainable transport interventions across England, including enhanced cycling and walking infrastructure, improved bus journeys and better transport interchanges. All bids needed to demonstrate how the proposed programme would deliver economic growth, benefit the environment, influence greater uptake of cycling and walking, improve health and create a more joined-up door-to-door journey for people.

The successful projects will share over £64 million in revenue funding. Each project has provided its own matched contribution; the overall total of this matched funding is over £375 million. This includes over £100 million sourced directly from the local growth fund. This means that for every £1 the Department for Transport will invest through the local sustainable transport fund in 2015-16, local authorities will contribute £5.80 over the six years to 2020-21.

Examples of some successful projects include:

Birmingham will be continuing their ambition to become a premier cycling city through an extension of their cycling ambition programme;

Devon’s successful Access 2 Education programme will be extended to continue their work encouraging students across the country to travel more sustainably to school and training;

Jobseekers in Tamworth will be supported to access employment through cycling training and improved transport interchanges; and

East Lancashire will benefit from a range of cycling improvements, including an enhanced strategic cycle network that will provide links between housing, employment and town centres.

The announcement contains a number of projects that will significantly support the Government’s “Moving More, Living More” campaign, which seeks to create a more active nation as part of the physical activity legacy to the Olympic and Paralympic games.

The full list of successful schemes has been published on the Department for Transport’s website at: https://www.gov.uk/government/collections/local-sustainable-transport-fund.

Oral Answers to Questions

Stephen Hammond Excerpts

Thursday 10th July 2014 Commons Chamber

[Charlie Elphicke (Dover) (Con)]

3. What assessment he has made of the economic effect of high-speed rail services to Kent.

[The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)]

The Department for Transport is currently undertaking an economic evaluation of High Speed 1, covering transport user benefits, wider economic impacts, regeneration, and Government shareholdings and assets. That evaluation is planned to be completed this summer.

[Charlie Elphicke]

I thank the Minister for that answer, and I welcome the announcement of the full extension of HS1 to Deal, Walmer and Martin Mill in my constituency, and the benefits that that will bring to the local economy. Will he give an idea of the similar benefits that might be provided by HS2?

[Stephen Hammond]

It is only fair for me to recognise the extraordinary efforts of my hon. Friend in ensuring that high-speed rail comes to Deal. I also recognise the extraordinary efforts of my hon. Friend the Member for Hastings and Rye (Amber Rudd), who is making the same case. HS2 will make an important contribution to securing prosperity across the country. It will generate jobs and rebalance the economy, and our estimates suggest that there will be more than £70 billion of benefits, including £53 billion of benefits to business.

[Mr Sheerman]

That’s £80 billion of wasted taxpayers’ money.

--- Later in debate ---

[Tom Greatrex (Rutherglen and Hamilton West) (Lab/Co-op)]

5. When he last used the Caledonian sleeper service for travel in an official capacity.

[The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)]

My right hon. Friend the Secretary of State for Transport has not yet used the service in an official capacity, but plans to do so shortly. My noble Friend the Minister of State, Baroness Kramer, used the Caledonian sleeper service on the evening of 31 October on a visit to Scotland. The Caledonian sleeper service is part of the ScotRail franchise, which is the responsibility of the Scottish Government.

[Tom Greatrex]

By my reckoning, there are at least four Members in their place this morning who are regular users of the sleeper service. When the Minister’s right hon. Friend the Secretary of State has the opportunity to use the sleeper service soon, he will, I am sure, discover that although it is not particularly high speed and he might not necessarily get that much sleep, it is a useful service. Given that the UK Government, along with the Scottish Government, are part-funding significant upgrade of the rolling stock, what is the Department doing to ensure that as much of the supply chain work for the upgrade goes to UK companies?

[Stephen Hammond]

As the hon. Gentleman will be aware, the Scottish Government announced in May that the winning bid for the franchise will commence next year. We want to ensure a service that not only he, but all Members, can sleep on. The rolling stock competition will lead to an upgraded rolling stock. The competition will of course be open to British companies, which are currently very successful at winning contracts across the panoply of rolling stock contracts let by this Government.

[Mr Charles Kennedy (Ross, Skye and Lochaber) (LD)]

Mr Speaker, may I make it abundantly clear that those of us with a clear political conscience sleep very well indeed on the sleeper service?

Will the Minister reflect on the fact that 15-plus years ago the then passenger franchise director was seeking to get rid of sleeper services, saying that they had no commercial future? In their wisdom, the Government—I support them on this one, for once—are providing match funding of £50 million at each end, with the Scottish Government, for a massive expansion to secure the future under Serco’s new 15-year franchise. This is a vote of confidence, the like of which has not happened in the lifetime of anyone in this Parliament. Will he welcome that fact and sleep well himself?

[Stephen Hammond]

I sleep well most nights, but nothing my right hon. Friend says ever fails to surprise me, either about his conscience or other matters. I am delighted to have his support on this matter. He is of course right: the sleeper service offers a unique, valued and high-profile service between Scotland and London. He is also right to say that the Government are committing to these services. The House will have noted the Prime Minister’s remarks in Cornwall last week on the Cornish sleeper service.

[Sir Tony Baldry (Banbury) (Con)]

May I, on my birthday, reflect that the passage of time and progress are not always the same thing? Nothing will ever equal the excitement of a child at King’s Cross station taking the night sleeper steam train to Inverness and the highlands, and waking up at Aviemore to have kippers in the restaurant car. That is one of the many joys, like all-night sittings, that younger Members will never enjoy.

[Mr Speaker]

We are always pleased to be informed of the source of the right hon. Gentleman’s excitements, whether current or historic.

[Stephen Hammond]

May I wish my right hon. Friend—and my sister—a happy birthday?

I think progress will be appreciated by all younger Members. The rolling stock will ensure that they get a good night’s sleep as they are whisked swiftly to Scotland to enjoy the many benefits of that country, which must of course stay in the Union with the rest of this country.

[Diana Johnson (Kingston upon Hull North) (Lab)]

6. What recent progress his Department has made on provision of rolling stock in the north of England.

[The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)]

The Department for Transport reached agreement with Northern Rail in April 2014 to introduce four-coach electric trains that will begin operating in passenger service between Liverpool and Manchester from December 2014.

TransPennine Express also received 10 new four-coach class 350 electric trains, which will now operate between Manchester and Scotland. Since May, TransPennine Express has used the displaced diesel trains to provide an additional service every hour across the Pennines and additional capacity across the network. In relation to the TransPennine Express diesel class 170 trains that Chiltern will lease from April 2015, the Department is continuing to explore options with industry partners and is in commercial negotiations. The Department will be outlining its proposed solution later in the year.

[Diana Johnson]

Perhaps the Minister missed the fact that I am a Hull MP, because he did not actually mention any of the services that go to Hull. Last week there was a lot of spin about HS3 for the north, which obviously will not happen until years after 2030, so let me press the Minister on the fact that we still do not have a resolution to the rolling stock being moved from TransPennine to Chiltern Railways. Again, is it not the case that, for the north, it is jam tomorrow, but today it continues to be jams for local people on the railways?

[Stephen Hammond]

The hon. Lady is wrong: the Department has identified a potential solution. We hope to be able to make a formal announcement later this summer. The decision to move the nine TransPennine Express class 170s was made by their owner. To address that, the Department is in commercial negotiations to develop a solution that is likely to see the introduction of more electric trains into the north, in addition to the 14 class 319s we have already announced, to release even more diesel units.

[Martin Vickers (Cleethorpes) (Con)]

The improved rolling stock that was introduced by TransPennine for Cleethorpes to Manchester services a few years ago increased patronage considerably. Will the Minister give an assurance that when the new franchise documents—the invitation to tender—are published later this year, he will specify that the highest quality of rolling stock be maintained on services out of Cleethorpes and that it will be at least the quality of the 185 units in use at present?

[Stephen Hammond]

My hon. Friend is an absolute campaigner for his constituents, and he has spoken to me a number of times on this issue and on the consultation. I should say that the consultation is just that. We are viewing a number of proposals at the moment, including the remapping of certain services, but I am sure that he will wish to continue to make those points during the consultation period. When the consultation finishes, we will consider all the points made and look to specify the necessary rolling stock requirements in the invitation to tender to ensure that the best services are provided for people across the north.

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

When the Department agreed to move rolling stock from the north to Chiltern Railways, the Secretary of State said that he could not have “unreasonably” withheld his consent. As it is clear that no solution to the problem has yet been identified, under what circumstances would it have been reasonable for him to refuse to allow that move from north to south?

[Stephen Hammond]

It is not often that I would dare to correct the hon. Lady, who chairs the Select Committee on Transport, but she clearly was not listening to my two previous answers. A solution has been identified. We are in commercial discussions and we will be making a formal announcement this summer.

[Mr Philip Hollobone (Kettering) (Con)]

Four trains an hour leave St Pancras destined for the north of England, with rolling stock through Kettering, but only one an hour stops at Kettering, so we have only an hourly service northbound, whereas we used to have a twice-hourly service northbound. Will the Minister speak with East Midlands Trains to give us our old service back?

[Stephen Hammond]

I thank my hon. Friend for his campaign on behalf of his constituents. Not only will I speak to East Midlands Trains about the issue, to ensure that his point is heard, but I am sure that he will want to catch me later to stress the point further.

[Lilian Greenwood (Nottingham South) (Lab)]

The Government’s consultation on rail services in the north proposes a number of route level changes to TransPennine Express, but is silent on Ministers’ plans for Northern Rail, even though it is clear that wide-ranging changes are envisaged. Will the Minister come clean with passengers, rule out a backroom deal and let people know what is planned for their area?

[Stephen Hammond]

There is a live consultation on Northern and TransPennine at the moment, which invites views across the region on a number of proposals, including the remapping of some franchise services between the two franchises. It involves both Northern and TransPennine, and I should stress that it is a consultation, which does not finish until mid August. When it does so, we will consider all those responses. There is no question of any backroom deal.

[Andrew Percy (Brigg and Goole) (Con)]

Can the Minister assure us that in the consultation on the new rail franchises, he will take account of the strong campaign being run by the Scunthorpe Telegraph and the Grimsby Telegraph in respect of our desire and requirement to maintain our services through to Manchester? Can he assure us, too, that whatever changes come, we will not be condemned to the Pacer units that I have to use every week on the train back to Goole?

[Stephen Hammond]

Let me give my hon. Friend two pieces of good news. First, I know he will have read the consultation document from cover to cover, so he will have noted paragraph 7.7, which states that the

“bidders will be required to include plans, either in their core proposition or as an option, which would enable the withdrawal of all Pacer units from Northern services.”

I obviously recognise the campaign of the two newspapers he mentioned, and I am aware of the campaign he has rightly put forward on behalf of his constituents. I would say to my hon. Friend, as I have said to those newspapers, which faithfully reported my words, that this is a consultation and no decision has yet been made.

[Mr Speaker]

I call Jack Dromey. Not here.

[David Mowat (Warrington South) (Con)]

8. What the estimated cost-benefit ratio is for the High Speed 2 Wigan spur.

[The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)]

The Department has not estimated the case for the western leg of the Y-shaped route for High Speed 2 without the Wigan spur. However, preliminary analysis undertaken by HS2 Ltd suggested that this section of the line is likely to provide benefits in the order of £1.2 billion, revenue of about £600 million, and is likely to offer very high value for money.

[David Mowat]

I have been, and remain, a strong supporter of HS2 because I believe in the transformational benefits that will occur. However, none of these transformational benefits occurs because of the line north of Manchester—it is not in the published business or in the published economic case—and the cost of this line is the better part of £1 billion, including allocated contingencies. Will the Minister confirm that he will look hard at this issue during the current consultation?

[Stephen Hammond]

I welcome my hon. Friend’s support for High Speed 2, and I welcome the opportunity to lay on the line yet again that the mischievous remarks of the hon. Member for Huddersfield (Mr Sheerman), suggesting a figure of £80 billion, are completely false. I will, of course, look through the consultation, but I am sure my hon. Friend will recognise that having the Wigan spur will ensure that we can deliver some of the benefits to the west coast main line, which is why the Government believe at this stage that it offers high value for money.

[Several hon. Members]

rose—

[Mrs Cheryl Gillan (Chesham and Amersham) (Con)]

Thank you, Mr Speaker. This morning, I heard of the death of Mrs Shirley Judges, one of my firm campaigners against HS2—and she was probably against the HS2 Wigan spur. She had put up a robust defence of our local environment in the Chilterns and throughout the country. The cost-benefit analyses of this Government have always been questionable, but I would like the Ministers to look very seriously at the benefits for those people who are forced to move house because of HS2 or indeed those who may be forced to move house in future because of the Wigan spur. Would it be possible to give these people a stamp duty holiday on the sale of their properties because they are being so badly affected? Finally, let me say that without people such as Mrs Judges, we would not have the strong voices that will make this project either go away or become a better project in the future.

[Stephen Hammond]

I never cease to be supportive of my right hon. Friend’s support for her constituents, and on this occasion she has managed to alter this country’s geography so that the Wigan spur is somewhere close to Chesham. I am sorry to hear of her constituent’s death and our condolences go to her family. She will, of course, recognise that the Government are already paying the stamp duty on properties within the 60-metre boundary. If she writes to my right hon. Friend the Secretary of State, I am sure he will consider her proposition for a further extension as part of the consultation.

[Mr Laurence Robertson (Tewkesbury) (Con)]

10. What recent progress he has made on improving the A417-A419 at Nettleton Bottom and Crickley Hill in Gloucestershire; and if he will make a statement.

--- Later in debate ---

[Mr Frank Doran (Aberdeen North) (Lab)]

11. What recent assessment he has made of the safety of passengers in the offshore oil and gas helicopter transport system.

[The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)]

The Civil Aviation Authority published its review of offshore helicopter safety on 20 February this year. The United Kingdom has a good helicopter safety record, and there is no evidence to suggest that travelling to oil and gas installations by helicopter is any less safe than travelling by any other helicopter operated in the UK. However—like the hon. Gentleman, I am sure—I am pleased that the CAA review has proposed a number of recommendations for further examination of the overall safety for passengers in the offshore oil and gas helicopter transport system. I note that the oil and gas industry has accepted the recommendations. It is working closely with the CAA to implement them and introduce safety improvement measures, and the Department is carefully monitoring the effectiveness of the CAA and the industry in doing so.

[Mr Doran]

I am sorry that the Minister did not mention the Transport Committee’s report on the serious problem of helicopter transport in the offshore industry, which was published on Tuesday this week. I hope that, when the Secretary of State sees the report, he will focus on the part that deals with the survivors of the last fatal crash in August last year, so that he can fully understand what the work force in the North sea have to put up with every day, and why those workers and their families support the demand for a full public inquiry into helicopter safety.

[Tom Greatrex (Rutherglen and Hamilton West) (Lab/Co-op)]

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

[The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)]

May I update the House on a few matters my Department has been involved in since the last Topical Questions? The announcement of the first £6 billion of growth deal projects on Monday included a raft of transport schemes across the country, with money being spent on schemes determined by local priorities to boost local economic growth. This landmark investment comes after our allocation in June of an extra £200 million to local authorities to fix potholes. Since the last Transport questions, the Department has also signed a contract with Virgin Trains for rail services on the west coast main line providing an extra 1,000 seats, and at the beginning of the week we announced £53 million to be spent on improving wi-fi access on trains, enabling passengers to receive seamless mobile broadband connections.

[Tom Greatrex]

I thank the Minister for that reply. I am sure he will be aware that it is very important, particularly cross-border, that we maximise the use of rail freight in this country, but I note that the east coast invitation to tender document states that

“there is no requirement to protect capacity for freight”

on what is a key section of that line. Will he confirm that that is the case and that, as part of this rushed privatisation of the east coast main line, he is making it much harder for freight to access this network?

[Stephen Hammond]

The hon. Gentleman has unfortunately failed to mention the upgrades on the other part of the freight line, which will ensure that all of those freight services still operate and there will be no diminution of service for freight operators north-south.

[Mr Mark Harper (Forest of Dean) (Con)]

T5. I thank my hon. Friend for the significant investment benefiting both Lydney and Cinderford in my constituency that was announced at the beginning of this week as part of the growth deal. It is a part of our long-term economic plan, showing joined-up Government, which is welcomed by my constituents and will make a real difference to their everyday lives.

[Stephen Hammond]

I thank my hon. Friend for mentioning both those schemes. The Cinderford north quarter link road and the Lydney transport strategy will be of benefit to his constituents, and he has been a real campaigner for them. I am delighted he welcomes them, and I am sure he will have noticed the remarks of the chairman of the Gloucestershire First—now GFirst—local enterprise partnership, Dr Diane Savory, who said:

“I’m absolutely thrilled that the Government has recognised the huge economic potential in Gloucestershire”.

Indeed, we have.

--- Later in debate ---

[Mr Andrew Turner (Isle of Wight) (Con)]

T6. Governments sometimes help with one Department but take away with another—on this occasion the non-ministerial Her Majesty’s Revenue and Customs. Will my hon. Friend make an assessment of the Isle of Wight’s connectivity and the impact on the Solent growth deal of HMRC removing the island’s ferry services from the tonnage tax regime? HMRC says it is not going to sea, which sounds a bit odd.

[Stephen Hammond]

My hon. Friend has lobbied me on a number of occasions about the island’s ferries. In this particular regard, qualification for the tonnage tax is a matter for HMRC. It is our understanding that since 1 July 2005 ferries have had to be operating at sea to qualify for tonnage tax. The cross-Solent ferries are regarded as operating within an estuary, as opposed to the sea, and therefore do not qualify, so there is no impact on the Solent growth deal in respect of these services.

[Mr Nicholas Brown (Newcastle upon Tyne East) (Lab)]

T2. What study has the Minister made of the potential for open access operators to reduce journey times between Newcastle and London on the east coast main line? What competition policy is he operating with regard to that matter?

[Stephen Hammond]

The right hon. Gentleman will know from the prospectus that we have welcomed the possibility of open access operators opening up new markets on the east coast main line. There is scope for that within the proposals, and we are looking at the bids very carefully. We recognise the benefits that open access has already brought for a number of people in a number of markets from the north of England, and I look forward to any other costed proposals.

[Mr Dominic Raab (Esher and Walton) (Con)]

T7. Under the previous Government’s franchise, South West Trains passengers are the single biggest subsidisers of other train lines in Britain, yet their services were rated as third worst value for money in 2014, mainly because of overcrowding. Does the Minister recognise that my constituents using South West Trains deserve a fairer deal when Labour’s franchise is renegotiated in 2017?

[Stephen Hammond]

My hon. Friend has rightly consistently raised this matter on behalf of his constituents. He will recognise that the level of overall satisfaction with South West Trains in a recent survey was at about the sector average, but I recognise, as he does, that overcrowding on South West Trains in the peak hours is a well-known issue and it affects the perception of value for money. My Department is working closely with South West Trains to address that.

[Mr Speaker]

Roberta Blackman-Woods. Not here. I call Grahame M. Morris.

--- Later in debate ---

[Duncan Hames (Chippenham) (LD)]

The consultation on the Great Western franchise, which has recently closed, covers a period that includes electrification and the first phase of the east-west rail project. What scope does the Minister see for introducing in the latter phase of that franchise additional services between Bristol and Oxford and beyond?

[Stephen Hammond]

My hon. Friend is right in what he says. He will have seen that consultation and the fact that we have invited initiatives from operators and franchise bidders in that regard. The possibility of extra services is being opened up by this Government’s commitment to electrification; by 2019 we will have put in place more than 870 miles of electrification whereas Labour managed less than 8 miles.

[Jim Fitzpatrick (Poplar and Limehouse) (Lab)]

Will the Minister with responsibility for shipping support the Mission to Seafarers, the Apostleship of the Sea and Seafarers UK and the excellent work those important charities do? Will he look at what support the Department gives and whether it can be increased for those very important charities?

[Stephen Hammond]

The hon. Gentleman is right. I support those charities, and I am delighted to have attended a number of their events with him. I will look at that and see whether there is any more that the Department can do.

[Philip Davies (Shipley) (Con)]

Aldi is ready to go ahead with the development of a new supermarket in Bingley that commands great public support. To go ahead, the development needs a land transfer from the Highways Agency via Bradford metropolitan district council. Will the Minister ensure that the Highways Agency pulls its finger out as soon as possible to make that happen so that that essential regeneration can take place in Bingley?

Crossrail

Stephen Hammond Excerpts

Thursday 3rd July 2014 Written Statements

[The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)]

In January the Prime Minister joined me at Tottenham Court Road to mark 50% completion of the Crossrail project. The Crossrail project has now moved into the peak of its construction phase. There are over 11,000 people working at over 40 sites across London. Four of the tunnel boring machines have completed their journeys and the new rail tunnels are over 80% complete including the Thames tunnel. The final tunnel drives are now under way and tunnelling should be completed by next spring. Construction is also progressing on the 10 new Crossrail stations and on works above ground west of Paddington and east of Stratford.

In the past year we have made great progress in many different areas of the project. Last July we announced that there would be a Crossrail station in Woolwich which is now the catalyst for the regeneration of the surrounding area, attracting investment from businesses and developers and supporting our plans for long-term economic growth.

In February the joint sponsors announced the contract to provide the rolling stock and depot was awarded to Bombardier UK plc. The contract covers the supply, delivery and maintenance of 66 new trains and a depot at Old Oak Common. This will support 760 UK manufacturing jobs plus 80 apprenticeships building the trains in Derby. The construction of the maintenance depot at Old Oak Common will see 244 jobs plus 16 apprenticeships supported when fully operational.

This is just one part of the contribution Crossrail is making to economic growth across the United Kingdom. It is estimated that during the construction phase the project will generate at least 75,000 business opportunities and support the equivalent of 55,000 full-time jobs around the UK. Firms from across the United Kingdom are winning business from the project. Sixty-two per cent of the suppliers winning work are outside London and over half (58%) are small and medium-sized enterprises. Ninety-seven per cent of Crossrail’s contracts are based in the United Kingdom.

We have also announced that Crossrail will now be extended to Reading. The extension of Crossrail services to Reading will achieve the best use of capacity on the Great Western line while also offering greater flexibility for future timetabled services.

The National Audit Office published their report on the project in February and this found that taxpayers’ interest in the Crossrail programme has so far been well protected. A Public Accounts Committee hearing held on 9 April supported those findings.

As we move towards the operational phase of the project, work is progressing on the appointment of the operator of the Crossrail services. Transport for London expect to announce the award of the Crossrail train operating concession later this year.

The Crossrail board continues to forecast that the costs of constructing Crossrail will be within the agreed funding limits. We expect Crossrail to cost no more than £14.5 billion (excluding rolling stock costs).

During the passage of the Crossrail Bill through Parliament, a commitment was given that a statement would be published at least every 12 months until the completion of the construction of Crossrail, setting out information about the project’s funding and finances.

In line with this commitment, this statement comes within 12 months of my last one which was published on 9 July 2013. The relevant information is as follows:

Cross-border Rail Services in Wales

Stephen Hammond Excerpts

Wednesday 2nd July 2014 Westminster Hall

[The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)]

It is a pleasure to serve under your chairmanship, Mrs Riordan. Today’s debate has shown the importance of transport and the rail industry to economic growth and the lives and livelihood of so many people across the country. I congratulate the hon. Member for Newport East (Jessica Morden) on securing the debate.

Many of the questions that hon. Members have posed this morning reflect the challenges of success. Since the Conservative Government took the decision to privatise the railways back in 1993, the number of people using the railways has doubled. The hon. Lady raised issues of great importance to the economic development of both England and Wales. From her service as a member of the Select Committee on Welsh Affairs, she will know that cross-border links have been the subject of several inquiries, as have tolls on the Severn bridge, and I am grateful that she did not raise that matter today.

I will now address several of the points that hon. Members have raised during the debate. The hon. Member for Newport East asked some specific questions about her constituency, some of which I will answer in writing, if I may. On timetabling, however, franchise agreements require train operating companies to co-ordinate services, but that co-ordination clearly has not been as strong in certain areas as it might. There has been dialogue between the Severn tunnel action group, Arriva Trains Wales, Arriva and the Welsh Government, but I am disappointed that no sensible conclusion has been reached thus far. I urge the groups to continue to talk, because meeting the obligation is possible.

On connectivity, some of which is determined by constraints on the Cardiff to Cheltenham and Birmingham to Bristol routes, if there is a solution, which is possible, it will require some substantial work by Network Rail, the TOCs and the Welsh Government to investigate the options and then agree on one.

The hon. Lady also mentioned her constituents’ desire to be able to use the Bristol service to work there. Some substantial work has been done with local authorities in the west of England to fund additional services, including those to Portishead, which will introduce a metro service to the area. While that is of benefit to the Bristol area, as the hon. Lady is right to say, we are currently encouraging the Welsh Government and the West of England local enterprise partnership to talk to ensure greater connectivity between the two schemes, which would be of benefit to her constituents.

The hon. Member for Vale of Clwyd (Chris Ruane) spoke of his time as a casing boy, as I think he described it. Although probably not as glamorous as that of the hon. Gentleman, I too had a job on the railways and spent two rather hot summers as a carriage cleaner many years ago during my university career. He was right to mention the potential of connectivity to Airbus in Deeside to generate jobs, but that is unfortunately a matter for the Welsh Government, so I urge him to take the matter up with them to see whether it can be improved.

[Chris Ruane]

The Minister will recall that I said that the Department for Work and Pensions had grants available 10 years ago to improve transport from areas of high unemployment to areas of employment. Is that not another possible source of funding?

[Stephen Hammond]

Most issues concerning rail services wholly inside Wales are now a matter for the Welsh Government, which is the key point here.

The hon. Member for Alyn and Deeside (Mark Tami), who is no longer in his place, suggested that rail is an afterthought. That may or may not have been the case previously, but it is certainly not the case under this Government. Rail is at the heart of both our economic and transport strategies.

The hon. Member for Wrexham (Ian Lucas) referred to the scale of investment that he had seen elsewhere. The scale of investment proposed in the current control period between now and 2019 dwarfs any of the investment that he has seen in any other country, because £38 billion is being invested in this country’s rail system. On top of that, £30 billion is going towards the road system. He mentioned regional input, and we will soon be announcing local growth funds, into which local authorities will bid. We have also encouraged local authorities to come up with local rail projects, and there is also the local pinch point fund, so there is much local activity.

The hon. Gentleman also referred to the Wrexham to Bidston line, and I recognise and understand his desire for its electrification. At the moment, however, the aspiration should be to get a more frequent diesel service so that plans can move forward. The hon. Gentleman is right to have such hopes and I promise to work with him, because increasing frequency on that line would be of substantial benefit to his constituents.

My hon. Friend the Member for Montgomeryshire (Glyn Davies) spoke of his campaign for an hourly service from mid-Wales so that newly elected Conservative MPs can actually get to London, and I am delighted that that service is in place. He also asked about the new Virgin direct award deal and direct services from Shrewsbury to Euston. I confirm that he is absolutely right: there would be little point in putting in place a service that did not allow for economic growth and for easy movement from London to Shrewsbury, and the other way around, to do a day’s work. The first train in the morning leaves before 6.30 am, but gets into London by 9.15 am; the last train back in the evening leaves around 6.30 pm—I think at 6.32 pm—which gets someone back into Shrewsbury for 9 o’clock, allowing a full day’s work in London if necessary.

The hon. Member for Swansea West (Geraint Davies) made a number of points, some of which I will cover later in my speech. He talked a little about his aspiration for renationalisation of certain parts of the line. I am not entirely sure where that fits with the shadow Chancellor ruling it out on the television on Sunday. I am happy to reaffirm to him, however, that the Government’s view is that franchising, and the creation of partnerships between the public and private sectors, is the best way to get value for money and better services for the fare payer and the customer, as well as the taxpayer. That is clear.

[Geraint Davies]

What I was getting at was that the east coast main line is now in public ownership, or publicly run, and we are saving £700 million, so does the Minister have an open mind on individual franchises? There was a basis for competitive tendering to include the public sector, so that we got the best value for money. I am not talking about total nationalisation for the sake of it; I want best value for the taxpayer. Does he agree with that, or does he want to give money away willy-nilly to the private sector because he is the one that is ideologically driven, not me?

--- Later in debate ---

[Stephen Hammond]

I absolutely disagree. The east coast franchise, however, will be out of public hands and back into private hands as a result of the franchising. By the end of the year, we will have announced the winner of that competition.

The hon. Gentleman must have noted the Rail Delivery Group report that came out on Monday, which pointed out that, since privatisation, the level of private sector profits for the rail companies has fallen, while the premium going to the Government has risen by more than £400 million. The facts show not only that privatisation has seen a doubling of passenger numbers, but that franchising has benefited both passenger and taxpayer. He should agree that those facts bear out the point that the process is not ideologically based at all.

The hon. Member for Llanelli (Nia Griffith) talked about the Pembrokeshire to Manchester stopping service, but that is a matter for the Welsh Government, because the stops would be inside Wales. I am sure that the Welsh Government will read her comments, and I hope that they will take them on board. As hon. Members know, it is true that co-operation on and, where appropriate, co-ordination of transport matters between the Department for Transport and the Welsh Government is important to the success of cross-border links. Relationships have advanced significantly and co-operation under the joint parties agreement occurs regularly. The Welsh Government and the Department have a good working relationship. Officials can therefore provide Ministers with the best advice possible to deliver some of the aspirations that we are discussing.

Co-operation between the two Governments is clearly vital if we are to secure the best possible benefit from the record levels of investment now going into the rail network. The investment for 2014 to 2019 that I mentioned—the details were published in July 2012—is built around four priorities: further electrification; increased capacity and faster journey times between key cities; facilitating commuter travel between and into major urban areas; and improving the major railway links to ports and airports. More specifically in Wales, the strategy includes the £1.35 billion electrification of the Great Western main line between London and Cardiff, on which services are expected to be electric by late 2017, and the electrification of the valley lines, which is due to be completed by 2019. Furthermore, the UK Government are specifying and funding electrification of the line from Bridgend to Swansea, thereby completing the 47-mile main line electrification from Cardiff to Swansea.

[Geraint Davies]

Is there, therefore, an undertaking for the Government to finance it all the way from Paddington to Swansea? The Minister also seems to be suggesting the valley lines will be included, but is there now at least a commitment that the UK Government will pay from Paddington all the way through to Swansea? Is there clarification of who is paying for the valleys bit?

[Stephen Hammond]

As the hon. Gentleman knows, that discussion is ongoing. The Welsh Government have raised issues about the arrangement signed with my right hon. Friend the Member for Putney (Justine Greening), who was Secretary of State for Transport at the time.

[Nia Griffith]

Will the Minister flag up in all franchise discussions the issue of people having to change trains as the line is gradually electrified, so that we do not end up with more changes than necessary? We want one simple change, if necessary, in Swindon, Bristol or Cardiff, according to how far the electrification has gone, and then to go right through to west Wales.

[Stephen Hammond]

With regard to that and to First Great Western, we have undertaken a consultation this year about what the services might be and how they might be improved in the next direct award. I hear what the hon. Lady says, and I am keen not only to specify services that provide the best value and best opportunity for travellers, but to allow the privatised companies the best advantage to ensure that they can look at new services and new opportunities for new markets, using innovation within the franchise.

Other elements of our strategy will also be of benefit to Wales. The Heathrow western access scheme will reduce journey times between Cardiff and Heathrow airport by about 30 minutes from 2021. The UK Government have committed to the introduction of super-express trains on the Great Western main line by 2018, which will reduce the journey time between Cardiff and London from about 2 hours to 1 hour and 42 minutes. Crossrail will then speed up access between Paddington and central London from 2019, which will provide a fast, one-change journey from south Wales to the City of London, the docklands and beyond. Welsh stations will also share in the £100 million of station improvement funds and the £100 million of Access for All funds from 2014 to 2019. Overall, therefore, Wales stands to benefit directly and indirectly from almost £2 billion of investment in modernising the rail network.

Cross-border rail services between England and Wales are provided by four franchised train operators. The Department for Transport has a statutory obligation to consult Welsh Government Ministers before issuing any invitation to tender for a franchise agreement that includes cross-border services. As I said in response to a number of questions, where a service is provided wholly within Wales, the Welsh Government must be a signatory to the franchise.

The Arriva Trains Wales franchise is not due to expire until October 2018. The Welsh Government specify and fund services within Wales and across the border, and they carry out the day-to-day management of the franchise and have the powers to fund improvements. Train operators are of course free to run additional services if they consider that is the right thing to do. The Department is working with Arriva Trains Wales to provide additional cross-border services from December 2014.

On Silk and further devolution, which came up several times, the Government support the decision to devolve Welsh services in the Wales and Borders franchise to the Welsh Government. A joint agreement governs joint management of the existing franchise to 2018. In our evidence to part 2 of the Silk commission, the UK Government noted the strong case in favour of modifying the devolution boundary in respect of the Wales and Borders franchise. The Silk commission subsequently reported that further devolution of the rail network in Wales would be possible and desirable, although it would require close cross-border co-operation. Our response to Silk made it clear that recommendations that did not require primary legislation could be implemented early if we were satisfied that the case for change had been clearly made and there were support across Government for its implementation.

We recently held a consultation on the second direct award, and I recognise the concerns that have been expressed about the First Great Western franchise. That was why we carried out the public consultation, so that it could inform us of some of the concerns and issues so that they can be addressed when the award is made.

A number of Members raised the issue of the high-speed network. High Speed 2 will deliver significant benefits for Wales through the interchange at Old Oak Common and the improved journey times to London and the north via Birmingham and Crewe. It will also allow for greater commuter, freight and local services from the capacity released on the existing networks. Intercity express programme trains will also be coming to Wales from 2017—

[Mrs Linda Riordan (in the Chair)]

Order.

To allow the next debate to begin, I ask Members leaving the Chamber to do so quietly.