Rail Infrastructure (Train Operating Companies)

Stephen Hammond Excerpts

Tuesday 6th December 2016 Commons Chamber

[Chris Grayling]

The hon. Gentleman has just described progress in Scotland, but the point that he has missed is that Scotland is the one place where we have a working alliance of the kind I am talking about. What he is describing is a step on the road to the model that I want to create across the railway, which he says builds passenger satisfaction. That is why this is the right thing to do. It is not about privatisation; it is about teamwork to deliver a better service for the passenger.

[Stephen Hammond (Wimbledon) (Con)]

Although Network Rail does many things well, it is often cumbersome and unresponsive to the customer. Will my right hon. Friend confirm that the purpose of his virtual operating companies is to bring scale benefits in cost and service to the customer?

[Chris Grayling]

My hon. Friend, who has great experience in such matters, is absolutely right. Right now, the incentives for team members in Network Rail are different from those in train operators. The incentive across the entire railway network should be to do a better job for the customer. Part of that process will involve aligning incentives so that everyone has the right motivation to deliver for the people who matter: the customers.

Airport Capacity

Stephen Hammond Excerpts

Tuesday 25th October 2016 Commons Chamber

[Chris Grayling]

The slot issue is one avenue for us to follow. We want to have a detailed discussion with regional airports, airlines and Heathrow itself about the best mechanism. I am absolutely clear that the planning consents, which I hope and believe will eventually be granted, and the national policy statements we prepare must contain provisions that protect connectivity. We need to work out the best way of doing it. It is not just about having a handful of slots at 11 o’clock at night; it is also about connectivity with international flights. We have to get this right for the whole United Kingdom and I give a commitment that that is what our agenda will be.

[Stephen Hammond (Wimbledon) (Con)]

Respected outside experts have estimated the need for £11.5 billion of taxpayer support for the third runway and even the Airports Commission suggests up to £5 billion, yet post the Cabinet meeting this morning, the Government website says that the expansion costs will be paid for by the private sector. I listened carefully to the Secretary of State’s statement, but he did not reiterate that commitment. Will he tell the House how much the taxpayer will have to put in for runway 3 and the associated surface works?

[Chris Grayling]

The most fundamental point is that Heathrow has committed, and will be held, to a plan that: first, does not increase the current level of road transport to the airport; and, secondly, increases public transport access to the airport to 55% of those using it. Those will be obligations that it will have to fund. The Government’s financial advisers have said that that is viable and investible. There are question marks about what schemes are actually part of the surface access. Some of them we have to do anyway. For example, we are about to start improvements to the M4, which will benefit Heathrow and improve access, but they are not solely about Heathrow. There are, however, some very clear obligations in terms of actual deliverables that the airport will have to meet and pay for.

Oral Answers to Questions

Stephen Hammond Excerpts

Thursday 30th June 2016 Commons Chamber

[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.

Cost of Public Transport

Stephen Hammond Excerpts

Tuesday 19th January 2016 Commons Chamber

[Lilian Greenwood]

The Labour party scrapped flex permanently, and it was the Secretary of State’s Department that chose to reinstate it, as well he knows. It was only as a result of concerted pressure by Labour Members that this Government dropped it over the past two years.

As I was saying, evening fares in the north have been hiked by up to 162% at the Secretary of State’s direct insistence. The Department’s own McNulty review has warned that our fragmented railways have a ticketing system that

“is complex, often appears illogical and is hard for the uninitiated (and even the initiated) to understand.”

There is also an efficiency gap of up to 40% compared with the best performing European operators, which is wasting money that should be used to address the rising cost of travel and to fund investment.

At the last election we were promised part-time season tickets, and a pilot by Southern Railway found that they could save some commuters 50% of the cost of their travel. However, the smart ticketing programme that underpins the system is 78% over budget and delayed by three years, and there are rumours that it could be cancelled. Will the Secretary of State tell us today whether the south-east flexible ticketing programme is being dropped?

Ministers might claim that services are getting better for everyone, but I urge them to mind the gap between their rhetoric and reality. We all remember the Under-Secretary of State for Transport, the hon. Member for Devizes (Claire Perry), saying that rail passengers had to realise that they were paying

“fair fares for a comfortable commute”.

[Stephen Hammond (Wimbledon) (Con)]

In the Corbyn land of rhetoric, the hon. Lady seems to have forgotten that fares went up by 11% in the last year of the Labour Government alone. It is this Government who have frozen regulated fares for three years. Will she acknowledge that fact and make sure that she puts the truth on the record?

[Lilian Greenwood]

If the hon. Gentleman looks at our record, he will see that rail fares increased only by the level of inflation or were actually cut in six of the 13 years that Labour was in power. Fares rose in some years, and that helped to fund investment. Under Labour, there was more investment in rail in real terms than under any previous Government. Under this Government, that link has been broken.

The Transport Secretary said that only commuters were paying regulated fares, and that unregulated fares could be “quite cheap”. Those comments are a world away from the frustrations endured by passengers every day on Southern and Thameslink, some of which were described in the House today by my hon. Friend the Member for Streatham (Mr Umunna). They reflect an increasingly overcrowded and unreliable network.

In 2009, the Conservative party’s rail policy review stated:

“Fare rises come with tacit Government approval and are often the direct result of the franchise process”.

Will the Secretary of State therefore explain why he intends above-inflation rises to resume after 2020, as his Department’s recent consultation on the East Anglian franchise makes clear? Passengers were always told that higher fares were necessary to pay for improvements, but under this Government that link has been broken. The electrification of key lines was first paused and then shambolically “unpaused” one week before the Conservative party conference, and those projects are now delayed by years.

That goes to the heart of public trust in the railways. Ministers and Conservative Back Benchers went into the last election on a manifesto that said that key improvements would be delivered in this Parliament, but information about the true state of those programmes was kept concealed within the Department. The Transport Secretary has said that he was not informed about the state of the electrification programme until after May, but why did he not pose searching questions within the Department in October 2014, when my predecessor, my hon. Friend the Member for Wakefield (Mary Creagh), challenged him to say

“which electrification projects will be delayed or cancelled”—[Official Report, 23 October 2014; Vol. 586, c. 1030.]

due to cost overruns on the great western main line?

--- Later in debate ---

[Lilian Greenwood]

I am not going to give way at the moment, because I want to make some progress. The Government claim they will not increase regulated fares above inflation, and we will hold them to that promise, but may I remind the Transport Secretary of his comments from two years ago, when he said that Labour’s fares freeze

“would cost £1.8 billion over the lifetime of the next parliament and be paid for by more borrowing and higher taxes.”

Given that the black hole in Network Rail's finances will be plugged by £1.8 billion-worth of asset sales and £700 million of additional borrowing, has not this Government’s ostrich-like approach to the railways resulted in what the Transport Secretary’s own party might call more spending, more borrowing, and more debt?

We need investment in our rail network, both in HS2 and in the existing railways. I am proud of the fact that we saw record investment between 1997 and 2010. Our Government invested more in the railways, in real terms, than any previous Government, addressing the chronic maintenance backlog, replacing thousands of unsafe, slam-door Mark 1 coaches and ending the appalling safety crisis created by the disaster that was Railtrack. I am concerned that the Government’s programme has come to resemble not the much heralded “biggest investment since the Victorian era” that we have heard so much about, but the ill-prepared 1950s modernisation plan that did so much damage to support for the railways.

As we come to make the case for additional investment, we need Ministers to own up to the challenges that the programme continues to face, but again and again, the message is the same: they did not know; they were not responsible; and they were not there. We could ask what exactly Ministers were doing instead of keeping improvements on track, because they were not keeping an eye on the franchising programme, which collapsed in 2012 costing taxpayers more than £50 million, or on the allocation of trains in the north, as the Secretary of State approved the transfer of new rolling stock from TransPennine to the south, triggering a capacity crisis that cost taxpayers another £20 million to resolve. It seems that their focus was solely on privatising East Coast, a successful public sector rail operator, which delivered record passenger satisfaction and punctuality scores—

[Stephen Hammond]

rose—

[Lilian Greenwood]

No, I have already given way to the hon. Gentleman.

East Coast cut its fares in real terms in 2014 and reinvested all its profits in the service. As reported last week, it was delivering the best-ever service on the line in the weeks before it was sold. Instead of extending that successful model of public ownership to the other franchise services, the route was prioritised to be sold off. Worse, we now learn that Directly Operated Railways, East Coast’s parent company, has effectively been mothballed and its functions outsourced to companies with no experience of operating passenger services.

We are left in the absurd position of divesting our in-house railway expertise at precisely the moment that several franchises and contracting competitions appear to be in doubt. Now, on top of the damage already done, the Government are seriously considering privatising Network Rail. They have already tested the theory to destruction with Railtrack. A sell-off of Network Rail will put profit before passengers and risk dragging us back to the worst excesses of privatisation. I say to the Transport Secretary: do not go down this road. We know how it ends and we on the Labour Benches will oppose it all the way.

May I say how disappointing it was that the Scottish National party in government not only issued a conventional franchise for ScotRail, but passed up the opportunity to invite a public sector bidder for the contract? The franchise was awarded a full month after Gordon Brown, the former right hon. Member for Kirkcaldy and Cowdenbeath, made it clear that, on the forthcoming Smith agreement, enforced rail privatisation will be no more and the right to include a public sector option is currently before Parliament in the Scotland Bill. Labour urged the Scottish Government at the time to postpone the competition, but that call was rejected.

Airports Commission: Final Report

Stephen Hammond Excerpts

Thursday 26th November 2015 Commons Chamber

[Mark Menzies (Fylde) (Con)]

I thank my hon. Friend the Member for Twickenham (Dr Mathias) for initiating this debate. She cheered up so many Conservative Members with her feistiness on election night, and we can see why she was elected. However, I have to say, as a member of the Transport Committee, that I am an avowed supporter of a third runway at Heathrow.

We have one of the biggest airports in the world, with a proven track record of success, at the edge of one of the greatest cities—possibly the greatest city—in the world, so it is frustrating that we have spent all this time prevaricating and being sucked down by, in effect, glorified nimbyism. I say to Members from west London: “It is not about you; it is about the future of the United Kingdom.” I find the stance taken by some people in recent years quite frustrating; it really is starting to wear a bit thin. This is not about electoral or mayoral campaigns; it is about the economic future of the UK.

[Stephen Hammond (Wimbledon) (Con)]

My hon. Friend is absolutely right. My constituency is not affected by the airport, either as it is or as it is likely to be, but I gently say to him that this is about evidence. If he reads the report, he will have to recognise that most of its conclusions are undermined by its own evidence. This is one of the most flawed public policy documents ever created. We should base the policy on evidence, not emotion, as he says.

[Mark Menzies]

Actually, I have read the report and the one thing very clear from it is that Davies has given a very strong indication of a preference. It is very frustrating that those who are viscerally opposed to Heathrow refuse, time and again, to provide clear alternative options. Today we have even heard Members say, “Let’s have more reviews and more discussions. Let’s kick it into the long grass.” We have even heard threats that the runway will never be built because of legal challenge.

--- Later in debate ---

[Tom Tugendhat (Tonbridge and Malling) (Con)]

Thank you, Mr Deputy Speaker, for allowing me to respond to the launch by my hon. Friend the Member for Bromley and Chislehurst (Robert Neill) of an airport expansion project into Kent and East Sussex. It will not surprise him to hear that that is not the answer I would favour, and neither would it be favoured by many of my friends, colleagues and neighbours in west Kent and Sussex. That is not the answer for the simple reason that it is the wrong answer for people in the London area and the south- east; it is wrong for the country and for our economy. It will not answer the question of economic development or of replacing Schiphol or Charles de Gaulle airports, and it will not answer the challenge that was put so eloquently by my hon. Friend the Member for St Austell and Newquay (Steve Double), who spoke about the need for hub airports. It is wrong, wrong, wrong, and just because someone does not like Heathrow does not mean that the answer is Gatwick.

Three years and £20 million has been spent on this report, and it should not be reversed by a few words in this House. It has taken many years of effort, and it is now the right time for us to settle down and get on with things. When we consider the economic development of the United Kingdom and the challenges that globalisation presents us with, there are those who say, “Why can’t we use Skype or videoconferencing?” The simple answer is that we are humans. We interact, meet and talk, and that is how we do business and communicate.

It is essential that we travel, and part of that demands that we can get to places where we need to be. Although I like the idea of Birmingham, and I would love to see more investment in Manchester, Glasgow and Edinburgh, in reality, sadly we are all lured to this den of Mammon, this city of London, because it is here where so much of our business is done. I wish it were not so, because in my community of Tonbridge, Edenbridge and West Malling, there is so much opportunity for people to enjoy a proper life that is not ruined by the traffic and the smog that we in London all know.

[Stephen Hammond]

My hon. Friend makes a powerful case for his constituents and for the UK. The other den of Mammon in the world is New York, but that does not have a hub airport. No hub airport anywhere in the world is restricted to three runways, and therefore there is an internal contradiction in the report. New York has three airports—we could also run the New York solution in London.

[Tom Tugendhat]

My hon. Friend makes an excellent point, but even he will recognise that if we were looking at the United States—I wish people a very happy thanksgiving—we would consider the 50 states and ask, “Where is that den of Mammon?” I think we would all say, “It’s Chicago.” I am afraid that Chicago O’Hare has the appeal that productivity comes from a hub airport.

There is enormous pressure on time, so I will say only that having had Gatwick as a neighbour for a number of years, I have seen what a bad neighbour it is. It has changed flight routes, narrowed flight paths over communities in my area, disrupted lives and ruined sleep—including that of my most immediate constituent: my wife—and it has made the lives of many people in the villages of Penshurst, Chiddingstone and Hever an absolute misery. I urge hon. Members to think hard before rejecting the amount of work that has gone into this report, and before rejecting this opportunity for economic growth for the United Kingdom, so that we can take back our rightful place as the absolute centre of the international community.

Oral Answers to Questions

Stephen Hammond Excerpts

Thursday 16th July 2015 Commons Chamber

[Mr McLoughlin]

I shall pass on the hon. Gentleman’s thanks to my hon. Friend the Member for Milton Keynes South (Iain Stewart), who used to be my Parliamentary Private Secretary, for his superb question, which rightly exposes the huge road investment that the Government are taking forward.

The study that the hon. Gentleman refers to is being done by Colin Matthews. I await his report, and it is in addition to the scheme that has already been announced.

[Stephen Hammond (Wimbledon) (Con)]

The Chancellor’s Budget last week confirmed the road investment strategy. How many extra miles of motorway and trunk road will it mean?

[Mr McLoughlin]

I am reliably informed by the Under-Secretary of State for Transport, my hon. Friend the Member for Harrogate and Knaresborough (Andrew Jones) that it entails 1,300 more miles.

Network Rail

Stephen Hammond Excerpts

Thursday 25th June 2015 Commons Chamber

[Mr McLoughlin]

It is wrong to say that I have reneged on those commitments. What I have said is that the Great Western railway line was always a priority for electrification, but that I want to see electrification on the other lines as well. A fair amount of the work that is required, such as bridge building and replacement, has already been done on the midland main line, and I hope very much that the line will be electrified, but at present it is right for us to ensure that we secure the best value for money on the railways.

[Stephen Hammond (Wimbledon) (Con)]

My right hon. Friend is right to say that electrification is difficult. I know that he has spent a great deal of time in the past year ensuring that Network Rail bears down on its costs. I warmly welcome his statement, particularly what he said about governance measures. May I urge him, however, to take all necessary measures to ensure that Network Rail stays within its spending and funding allowances? That, and only that, will enable passengers to see the benefit of the Government’s long-term commitment to rail investment.

[Mr McLoughlin]

I entirely agree with my hon. Friend. The level of our investment in the railways is unprecedented in comparison with that of recent Governments, but it is also important for us to secure best value for our investment. That is one of the tasks with which I have charged Sir Peter Hendy, and I look forward to receiving his report later this year.