South Western Railway

Stephen Hammond Excerpts

Tuesday 1st October 2019 Commons Chamber

[Caroline Nokes]

I thank the hon. Lady for making that point. It may try her patience, but I will come on to the issue of disabled passengers at the end of my remarks. A constituent of mine has been in touch about a terrible experience he had on a train from London Waterloo to Basingstoke. As a disabled passenger, he was trapped on the train and unable to make alternative arrangements, and he had a distressing and dreadful experience.

I am concerned by the circular firing squad we sometimes see between South Western Railway, Network Rail and the Department for Transport. At times, all can appear keen to blame and turn on each other, when perhaps they might do better to establish a constructive relationship with clear accountability, instead of the obfuscation and fudge we have at the moment. It is not only in this House that we achieve more by working together.

I shall move on to the specifics of where it still seems to be going wrong. The independent review commissioned by my right hon. Friend the previous Secretary of State for Transport, and chaired by Sir Michael Holden, reported over a year ago now, making a number of important recommendations. This is perhaps a good time to consider those recommendations and allow my constituents the opportunity to reflect on the progress they think has been made. It is also a good time to pose questions to my hon. Friend the Minister about what oversight he has of the progress of South Western Railway against those recommendations, which particular ones he regards as the highest priority, and what sanction he might consider imposing if there is not adequate improvement. As I indicated earlier, SWR has had a year since the review, and the patience of my constituents—if not the Minister—has run out.

I would like to highlight in particular the frustrations regarding overcrowding. Of course, I welcome the additional trains introduced following the timetable changes in May, but there is a nagging suspicion that this has been achieved by pinching carriages from other services. As my constituent David Willey explained to me, the most significant change on the service he uses has been the reduction in capacity by 17% from 720 seats in 12 carriages to 600 seats in 10. This has meant he has had to stand in his carriage usually two mornings a week.

Barnaby Wilson of Chilbolton let me know that he could not remember the last time his commuter train in or out of London was not short-formed and/or late. He comments on the regular occurrence of a 10-carriage train running with just five, thus halving the capacity at rush hour. And we all know the consequences: people crammed in like cattle, standing for the entire journey, or forced to wait for the next train as they simply cannot get into the reduced number of carriages.

[Stephen Hammond (Wimbledon) (Ind)]

My right hon. Friend is making a powerful case on behalf of her constituents. When the service gets further up the line, shortened carriages cause even more problems, for constituents in Wimbledon and elsewhere. SWR promised to address this in its franchise bid, and we should now be reviewing that and asking whether it will be held to account.

[Caroline Nokes]

My hon. Friend makes a valid point. As my constituents pass through places such as Wimbledon, they see that no one is able to get on those trains.

As one constituent put it to me, the only change he has noticed in SWR’s service is a further deterioration, from a very low base: short formations, broken trains and stations being skipped, and delays continue unabated. As he correctly points out, if SWR publishes a revised timetable the evening before the service is reduced, there is no recourse to Delay Repay unless the service deviates from the newly published timetable. He describes it as a consumer rights void that he would like the Minister to address.

I would like to ask about the way transport strategy is joined up. Ian Dickerson of Romsey assured me that his preferred route from Romsey to Waterloo was to drive to Sunbury and then join the rail network on the Kingston loop to Waterloo, thus saving over £50 a week in tickets and parking costs, but undoubtedly adding to emissions on our road network. It is simply not a green solution.

One of the recurrent themes from constituents has been that SWR’s predecessor, South West Trains, had its moments, as they put it, but most of the time ran a robust, if no frills, service. If anyone in 21st century Britain regards functioning wi-fi as a frill, let me tell them that SWR has not even managed that. The passengers I sat across from yesterday commented in amazement that the wi-fi was working for once—right up until the point it wasn’t.

The consensus is that this performance is a breach of contract between company and traveller, and there is a suspicion that the Government have been duped by a provider promising what it simply cannot deliver. SWR won the contract pledging more seats and services and it has produced neither. The 442 shambles has meant there are now fewer seats and services. The promised new rolling stock has not yet arrived. It was promised by the end of this year. That clock is ticking and passengers are watching closely. Peak-time payers suspect they have been sacrificed on the altar of winning a contract and left with the old SWT trains, where the promised refurbs seem to have come to a grinding halt. It is far too simplistic to say we should renationalise—that is not the issue. The Department was sold a pup and needs to work out how to hold SWR to account against the Holden review challenges.

The final comment I have from a constituent is about the provision for and the treatment of disabled passengers. We all know there was an extremely hot spell during the summer, when rails got very hot and there were challenges right across the network. I am tempted to comment that it coincided with my hon Friend’s arrival in the Department for Transport, but I do not blame him for train conditions that were in some instances hotter than hell. But rail services run better in countries that are a great deal hotter than the UK ever gets in July and without the same level of chaos.

My constituent, a wheelchair user trying to return home via Andover, was advised at Waterloo to get on a Basingstoke train, as most other trains had been cancelled. With SWR assistance, he boarded a Basingstoke-bound train that was about to depart. Once he was onboard, it became apparent the heating was stuck on in the carriage and passengers were told to move forward, but my constituent was in a wheelchair; he was trapped. By the time the train arrived at Clapham, only a few minutes down the line, he was in serious medical difficulty, but he remained trapped in the carriage, as it was too far off the platform. He was in carriage nine, and we are all conscious of the shortness of some platforms at Clapham. No help was forthcoming from train or station staff, and it was only because another passenger intervened by preventing a door from shutting—literally putting his foot in it—that a medical emergency was averted. My constituent was seconds away from calling 999. However, the event prompts us to ask why the rolling stock is so antiquated that it had the maximum heating on the hottest day of the year, and why SWR staff at Waterloo helped my constituent into a carriage when there was an immediate announcement that the heating was stuck on.

Finally, let me return to the recommendations of the Holden review, and how SWR can be held to account for any failure to deliver. If Network Rail does not fulfil its obligations it can be held responsible by the Office of Rail and Road, which, in November 2018, took formal action to ensure that it would deliver on the recommendations in the review. However, SWR is accountable only to the Department for Transport, so I respectfully remind my hon. Friend the Minister that it is up to him to ensure that it delivers. May I ask him how robustly he intends to do that?

The medium-term recommendations are all due to be completed by the end of this year. There are 12 of them, ranging from ensuring the competence and training of controllers to ensuring that there is adequate provision of CCTV on platforms to assist with the dispatching of trains. Crucially, the review identifies the misalignment of incentives. It recommends that by the end of the year, the non-aligned objectives of Network Rail and South Western Railway should be dovetailed to ensure that the two organisations are pulling in the same direction at the same time—rather as we might expect a train engine to do. I simply ask my hon. Friend what steps he is taking to make sure that that actually happens, so that he may avoid having to return to the Chamber time and again to listen to what currently appears to be a tale with no end in sight for the poor passenger from my constituency who will pay just short of £6,000 a year to be subject to a sub-standard service.

--- Later in debate ---

[Chris Heaton-Harris]

And Leigh in Greater Manchester, I am informed by a terrible heckler from a sedentary position, suffers the same.

The current operational performance of South Western Railway for the period 18 August to 14 September, measuring arrival time to within five minutes at the final destination, was 82.9%. That is the common measure used by the rail industry. Using the measure that we, as a Department, now like to use—being on time within a minute—for the first quarter of this year performance was 59.7%. That is clearly not good enough.

My right hon. Friend the Member for Romsey and Southampton North knows that we are a relatively new ministerial team in the Department, and when the Secretary of State came into the Department he set out his priorities for improving the railway. He is absolutely determined to work with the rail industry to deliver a more reliable, passenger-focused railway.

[Stephen Hammond]

Those are appalling statistics, but the Minister is absolutely right about a customer-focused railway. He must bang the desk of Network Rail, because a number of those failures have been signal failures, such as those which we experienced on the line yet again yesterday. When he bashes South Western Railway, will he please also make sure that Network Rail is brought into that attribution, and make sure that it recognises its responsibilities to customers?

[Chris Heaton-Harris]

I completely hear what my hon. Friend says. I promise to take up the mantle on this issue. It has not been lying still on the table—I can also promise that.

My right hon. Friend the Member for Guildford (Anne Milton) informed the House that her constituents just wanted their rail service to do simple things—run, and be on time. I think that is a fair expectation. Maybe have enough room for three bottoms on some chairs as well, but basically that is it. I do regularly look at the various sets of statistics for the things that my right hon. Friend mentioned. I know that the Guildford ticket office has caused great concern to Guildford customers, and I do know, because I was warned by previous Rail Ministers, that the Guildford station platform 0 option is a matter of great contention locally, but I have not formally looked into it. I will ensure that I do, if that is okay as an offer to my right hon. Friend.

My Secretary of State’s vision is that the industry must make innovative changes to make the trains run on time, all of the time. South Western Railway agrees that its general performance is not yet up to the standard that it would like, and that its customers expect.

Around 70% of the delays and cancellations that affect passengers result from problems with the infrastructure, which is down to Network Rail, as my hon. Friend the Member for Wimbledon (Stephen Hammond) identified. Overall, Network Rail will spend around £48 billion nationwide on maintaining the network over the next five-year period, running from this year until 2024, and the Wessex route has seen a 20% increase in its funding compared with the previous five-year period. This funding should see more maintenance and a huge uplift in the renewals, to increase reliability and punctuality for passengers, but I know that it has not been delivered yet.

The train services provided by the South Western franchise are relied upon by 600,000 passengers every day. The train operator, South Western Railway, runs around 1,700 services each day on the network. The latest figures published show that 110,000 passengers pass through Waterloo station during the morning peak. It is a very, very busy network.

People are rightly frustrated and angry about the level of delays and cancellations that they are suffering, and I personally am sincerely sorry that that performance has reached this level—to the extent that we are having to hold this debate again on the Floor of the House. This has not happened overnight; sadly, the service has been deteriorating since about 2011-12. The Department for Transport has been working closely with South Western Railway and Network Rail to try to ensure that the causes of the problems are identified and understood and that there is a plan to turn performance around.

My right hon. Friend the Member for Romsey and Southampton North referred to Sir Michael Holden’s review of South Western Railway and Network Rail’s performance on the Wessex route. The review was commissioned by the previous Secretary of State to ensure that everything was being done to understand and address the causes of the downturn in performance on the route. Sir Michael made 28 recommendations for improving performance. Some of them could be implemented in the short term and others will take longer. He was clear that there is no silver bullet and that it will take time to restore performance to acceptable levels, and that is our highest priority.

Sir Michael’s recommendations cover a range of disciplines, including performance management, train operations, infrastructure maintenance and renewals, and control and resourcing. He also suggested a number of infrastructure changes that could be made to improve the service. SWR and Network Rail are documenting their progress and sharing a copy of their “tracker” with the Department each month so that we at the centre can see how they are progressing. I can assure my right hon. Friends that we are monitoring it very closely.

--- Later in debate ---

[Chris Heaton-Harris]

Full deployment of that will come in the next three years.

On the experience during the summer of my right hon. Friend’s constituent who uses a wheelchair, clearly this situation was handled badly and is unacceptable. I had not heard of this particular case beforehand, although I follow these cases closely in my office. I used to be the chairman of the all-party group on learning disability, and I think accessibility on our railway should be and is absolutely a priority of a modern-day rail service.

[Stephen Hammond]

I am pleased that the Minister is touching on this point, because I wanted to raise it. Accessibility, both for people who are disabled and for young mothers and others, is a real issue. Major stations up and down the SWR network have failed to have that step-free access implemented. I am thinking of places such as Raynes Park, in particular; currently, disabled people have to catch a taxi to Wimbledon in order to get on the train. That level of access is not acceptable.

[Chris Heaton-Harris]

I completely get the point that my hon. Friend is making, as well as those made by the hon. Member for Bristol East (Kerry McCarthy) and a host of other points I have picked up on since I became the Minister of State with responsibility for rail. I can honestly say that we are looking at this as hard as we can. Obviously, it would be much more helpful if people were able to book in advance, and they are able to. I know from my commute home on London Northwestern that a huge amount of investment has gone into some software at Euston and 35 people work there to ensure that disabled people or people who need help to get on and off trains can book that help in advance and get on and off in the right place. The work is being done and it is extremely important to me and to all the franchise holders.

We are continuing discussions with FirstGroup about train service operations for the future great western franchise, which will start in April 2020. The hon. Member for Bristol East has left the Chamber, but she would be interested to know that the discussions include options for the heart of Wessex line, which was a route that respondents to the public consultation suggested would benefit from improvements in the frequency of train services.

As I said in my opening remarks, SWR agrees that its general performance is not yet up to the standard that it would like, that its customers expect and that we all would expect. SWR’s joint performance improvement centre at Waterloo, which was established together with Network Rail last year, is focusing on performance improvement initiatives that should have a real impact on services. I look forward to taking my right hon. and hon. Friends to see it. SWR is working to reduce the number of incidents on the network to be more responsive to them when they occur. So, a whole host of things are going on to try to improve the situation for my right hon. Friend’s constituents and all who travel on the SWR network.

National Policy Statement: Airports

Stephen Hammond Excerpts

Monday 25th June 2018 Commons Chamber

[Chris Grayling]

I will give way three more times, then I really must make some progress.

[Stephen Hammond (Wimbledon) (Con)]

I listened carefully to my right hon. Friend’s remarks about climate change, which will clearly require an upgrade to surface transport. Will he confirm whether the statement lays out the polluter pays principle and that the developer will be expected to pay a contribution to the surface transport upgrades?

[Chris Grayling]

Absolutely. Improvements to nearby roads and paying for parts of the rail projects that are due to happen are built into the plans. It is absolutely essential that that is the case. Heathrow airport will make a substantial contribution to that.

Transport Secretary: East Coast Franchise

Stephen Hammond Excerpts

Wednesday 23rd May 2018 Commons Chamber

[Stephen Hammond (Wimbledon) (Con)]

It is a great honour to speak in this debate, and I am looking forward to making a short contribution—certainly no longer than six minutes. It is a pleasure to follow the hon. Member for Kilmarnock and Loudoun (Alan Brown). I note that he chastised Government Members for saying that the explanation was simple, but it appears that he does not understand the difference between revenue projections and debt, which is fundamental here. At its heart, the motion seems to be about the east coast main line, how it was franchised, how it is now operating, the solution and also the future of the railways. The divide between the two sides of the House is clear: the Opposition believe that everything should be nationalised, and the Government believe that a public-private partnership will work for the benefit of passengers.

I listened to the opening remarks of the shadow Secretary of State, and I understand his frustration, but surely he appreciates a Secretary of State who comes to the House to announce changes, rather than one who, as happened in the case of National Express, made an announcement on the radio at 7.30 am. When this Government had less talent available to them and I was a Minister, I met a number of people from the rail industry and I can say that to think that the railways are not run by professionals is an insult to the many who work on them. They will have been disappointed to hear the shadow Secretary of State say that today.

This is about rail franchising, the principles on which it is based, and then whether the Secretary of State has followed those principles. After the problems with the franchising of the west coast main line, the Brown review set out the principles for franchising and re-franchising. The principles contain clear guidance on the capital that must be put up by franchisees, on the risks and on the Secretary of State’s duties—duties that this Transport Secretary has surely followed. It is his job to ensure that passenger services are not disrupted and that there is a smooth transition if a franchise is failing. By getting the operator of last resort involved last autumn, services were preserved, and the reality on the east coast main line is that more trains are being run, more money will be generated for the taxpayer and more people are being employed. In addition, the most recent passenger satisfaction survey shows that 92% are satisfied with the privatised railway.

[Lilian Greenwood]

rose—

[Stephen Hammond]

I will happily give way to the Chair of the Transport Committee.

[Lilian Greenwood]

I want to pick up on the hon. Gentleman’s point about the Brown review. One of its recommendations was that franchisees should be responsible only for the risks that they can manage, but that was not implemented. Does he agree that the failure to do so was one reason why this franchise has gone wrong?

--- Later in debate ---

[Stephen Hammond]

If the hon. Lady reads on, she will see that that recommendation states that franchisees

“should not be expected to take external macroeconomic”

risks. Surely this franchise has underestimated the risk to itself by overestimating revenues. Now, whether the Department for Transport took the appropriate advice is for the Transport Committee to dwell on, but the Brown principles are quite clear.

The next duty on the Secretary of State is to ensure that taxpayers are protected, and this private failure has not resulted in public sector liability or taxpayer cost. The Secretary of State is right in what he says about that.

Finally, there are processes that must be followed. Like it or not, whether someone is a Minister or a Member of Parliament, there are many times when frustration with some public or private service can boil over, but due legal process must be followed. Looking at what this Secretary of State has done, I do not think that anyone can argue that he has not followed the process. He came to this House in February, and before that he set in place the operator of last resort. He has ensured continuity of service and that there will be no loss to the taxpayer. He has taken the appropriate legal advice. Against that test, the motion must fail.

[Mr John Hayes (South Holland and The Deepings) (Con)]

rose—

[Stephen Hammond]

On that point, I will give way to my right hon. Friend, a former Minister of State.

[Mr Hayes]

I was able to work with the Secretary of State, as the House knows, and I can say with absolute surety that he is a diligent Minister who does indeed know the detail and follows procedure in precisely the way my hon. Friend describes. I do not think it is reasonable to blame the Secretary of State for intervening when we all know that he would have got the blame had he not intervened. He has taken the right steps in the public interest and should not be blamed for doing so.

[Stephen Hammond]

The former Minister of State is a friend of mine from when we were both in the Department for Transport. I wholeheartedly concur, as ever.

The second part of the motion is about the future, which is where the biggest divide is. I enjoy a good reminiscence as much as the next person. I remember my fifth birthday treat—my parents took me on the railways, because I always wanted to do it.

[Alec Shelbrooke]

Was steam still around?

[Stephen Hammond]

Yes, steam was still around.

For most of the first part of my professional life, I used British Rail to commute. The idea that it was a paragon of virtue and good service is just nonsense. My memory, which I do not think has deserted me, is of old and failing rolling stock, poor maintenance, timetables that were never operated and a lack of investment. That is not the reality now. Since privatisation, the Government have invested billions in railway infrastructure. Over the next five years, they will ensure that there is another £20 billion—actually, there will be much more than that coming directly from the private sector investing in new rolling stock, which will be the biggest benefit for the public.

[Grahame Morris]

Will the hon. Gentleman give way?

[Stephen Hammond]

I am mindful of the six-minute limit. I have taken two interventions, so I will not take one from the hon. Gentleman.

That private investment, which Labour so heavily opposes, is the very investment that will greatly benefit the people who travel on the trains, about whom all hon. Members should be most concerned. Under Labour proposals, that investment would disappear.

I applaud my right hon. Friend the Secretary of State, who has come to the House with a future rail strategy. It is a great start, but he knows I would like him to go further in a few key areas. I went to speak to the managing director of South Western, which runs the trains around my area. The reality is that Network Rail is causing the bulk of the delays. I am delighted to see public-private partnerships, but I urge my right hon. Friend to go further with his plans to devolve sections of Network Rail, which would provide local accountability and responsiveness to local passenger need. Let us not worry ourselves about nationalisation; let us make sure we get this right. It is ironic that the part of the railway that is most criticised is the nationalised part.

My right hon. Friend the Secretary of State made the point about timetable delays and one or two other issues. The projects division inside Network Rail is responsible for many good works, but it is also responsible for a number of delays. I urge him to get the private sector more closely involved in the design and concentration of projects.

Finally, I am pleased to say that this motion fails at the most basic level. It is wrong to censure the Secretary of State, who has followed the right processes. The last thing this country needs is to go back to the 1970s. It needs to look forward to the 2020s, and nationalisation can never be the answer.

East Coast Main Line

Stephen Hammond Excerpts

Wednesday 16th May 2018 Commons Chamber

[Chris Grayling]

The first thing to say is that I could have done what has been done previously and made a stock market announcement at 7 am this morning, and not come to the House first. I actually chose on this occasion to come to the House first to provide the information, albeit price sensitively, in the best possible way. I am disappointed that the hon. Gentleman does not believe that that is a more appropriate way to handle such an issue than making a 7 am announcement to the stock market, as has been past practice.

The hon. Gentleman talks about nationalisation. Let us deal with this issue head on. Labour has spent the past few months desperately trying to take us back into the ambit of the European Union. Let me explain this to him very simply: his policy on rail nationalisation is illegal under European law. It is all well and good Labour Members arguing that we should stay in the single market and have a second referendum and all the rest of it, but his version of nationalisation is not legal under European law, so why would we take him seriously when he talks about this? I am interested in what works, and that is what we are doing with today’s announcement.

The hon. Gentleman harks back to the period of public operation of this railway. During that period, fewer staff were employed, it generated less money for the taxpayer, and passenger satisfaction was lower than it was subsequently. So it was not some great nirvana period. Yes, things were done in a way that moved things beyond the collapse of National Express in 2009, but the performance of the team currently running the railway has been good. It is not their fault that the parent company got its sums wrong. We should pay tribute to the team who work on that railway and say that it is not their fault that I have had to make today’s announcement.

The hon. Gentleman keeps going on about a £2 billion announcement. That is another example of why Labour does not understand any of this, because otherwise he would realise that no bail-out has taken place, any more than Labour bailed out National Express. This railway line is continuing and will continue to make a substantial contribution to the taxpayer. When he talks about a £2 billion bail-out, he does not understand the finances of the railway. It is not true today and it was not true when National Express collapsed. The reality is that this is the best way to take forward what has been a difficult situation on this railway on a path that I believe in and I think the public believe in: it is better to bring back the operation of track and train, and that is what we will do.

The hon. Gentleman raises the issue of the railcard having been scrapped. That would justify his not believing everything he reads in the papers.

[Stephen Hammond (Wimbledon) (Con)]

I welcome my right hon. Friend’s statement. As I understand it, with the formation of LNER there is no bail-out and nor is there any renationalisation, which will be widely welcomed. On the basis that taxpayer value has been protected, will he say what extra investment might be available to LNER, whether there will be opportunities for private sector investment and whether he will open up the line to open-access competition?

[Chris Grayling]

The latter point is really important. We want open access to continue. This line has some excellent open-access operators. The system we are putting in place will do nothing to preclude that from happening. I am very clear that that has to continue and that the interests of both the open-access operators and the freight companies needs to be protected as we take this forward. I assure my hon. Friend that that is what will happen.

I want to continue to see private investment in our railways. The Labour approach would mean that each year the railways were competing for public capital with schools, education and the rest. That is something that Labour Members do not quite understand. The railway gets more investment through a partnership between the public sector and the private sector than ever it would through their renationalisation policy. Going back to the days of decline and failure under British Rail is their way for the future. We just have to look at what is happening in France, where people are desperate to move away from that model because it is not working.

Oral Answers to Questions

Stephen Hammond Excerpts

Thursday 18th January 2018 Commons Chamber

[Joseph Johnson]

Passengers are accessing compensation schemes far more easily than ever before. That is reflected in the greater take-up of compensation payments, which is growing at a far faster rate than any delays in services. We continue to work with operators to ensure that this becomes easier for passengers to access and we will be looking carefully at that in the next franchise renewals process.

[Stephen Hammond (Wimbledon) (Con)]

5. What recent assessment he has made of the role of private sector investment in the rail industry.

[The Secretary of State for Transport (Chris Grayling)]

The private sector has generated almost £6 billion of private investment over the past decade, providing new trains, upgrading stations and transforming the passenger experience.

[Stephen Hammond]

I thank my right hon. Friend for that answer. The irony will not be lost on him that public sector satisfaction in the railways is declining as Government influence is at its highest since rail privatisation. What discussions has his Department had with Network Rail to change procurement and design practices so that the private sector can have more influence in funding and financing future projects?

[Chris Grayling]

I want to see both. We have just announced the biggest investment programme in our railways—over the period 2019 to 2024—since the steam age, including £20 billion of renewals. That is crucial: one of the reasons why we talk at Question Time about train delays is that the infrastructure in many places desperately needs renewal, which is why we are spending £20 billion on that. It is also important that we bring in additional private finance alongside that public investment, and I have been discussing extensively with Network Rail how we can make that happen.

Oral Answers to Questions

Stephen Hammond Excerpts

Thursday 30th November 2017 Commons Chamber

[Paul Maynard]

I share my hon. Friend’s concerns about the line; I often have to travel on it back to Blackpool myself. When I am in the east midlands, I am often struck by the fact that there is usually only a two-carriage train that is not always fit for the demand on that line. As he will know, the east midlands consultation is ongoing at the moment. We are carefully considering the responses, which include my hon. Friend’s. I am sure that we will see further improvements in the line as part of the bids that come forward.

[Stephen Hammond (Wimbledon) (Con)]

19. I particularly welcome the document that came out yesterday and the point it makes about regional rail partnerships, which many experts agree are the answer for driving passenger satisfaction and value for money. They should be the first stage towards vertically integrated companies. Will the Minister confirm that that might be the final destination for those partnerships?

[Paul Maynard]

As the Secretary of State said yesterday, this is all about evolution rather than revolution. We have been aware since the time of the McNulty report of the attraction of bringing track and train together, and we need to make sure that such alliances work in the interests of passengers. The more that that occurs and the more we see the benefits of joint working, the more those benefits will develop across the entire rail network.

--- Later in debate ---

[Chris Grayling]

I understand why this is such a serious issue, and I would be delighted to extend an invitation to the hon. Lady to come to the Department to meet Ministers and officials to talk about what is clearly an important matter.

[Stephen Hammond (Wimbledon) (Con)]

T9. Along with many other Londoners, my constituents are concerned about the number of promises the Mayor appears to be breaking on transport infrastructure. Will my right hon. Friend confirm exactly what the Mayor now needs to do to progress Crossrail 2 so it does not become another one of his broken promises?

[Chris Grayling]

We are now conducting the kind of review of the financing of Crossrail 2 that we conducted on Crossrail 1—the Montague report. I am keen to see the project progress in lock step and parallel with northern powerhouse rail, and I make it clear that they are both important projects. I also make it clear that the London contribution cannot be an IOU paid for by the Government. We have to make sure that we have a robust, absolutely reliable funding package so this project can go ahead in good shape.

Automated and Electric Vehicles Bill

Stephen Hammond Excerpts

2nd reading: House of Commons & Ways and Means resolution: House of Commons
Monday 23rd October 2017 Commons Chamber

[Mr Hayes]

I see that I have many colleagues who want to contribute. I give way to my hon. Friend the Member for Wimbledon (Stephen Hammond).

[Stephen Hammond (Wimbledon) (Con)]

I thank my right hon. Friend for giving way. One area in which drones and automatic vehicles will make a huge difference is the logistics industry. All too often, Government frameworks lag technology, but my right hon. Friend’s reputation for forethought will be enhanced by the Bill, which establishes a framework that will give the industry some certainty regarding innovation. We cannot and should not make predictions about the industry, but we should give it certainty regarding the innovation that it wants.

[Mr Hayes]

I agree with every word of that, except that my hon. Friend should have said further enhanced, rather than enhanced.

Oral Answers to Questions

Stephen Hammond Excerpts

Thursday 19th October 2017 Commons Chamber

[Jesse Norman]

As the hon. Lady will know, the Secretary of State made clear—[Interruption]—and reminds the House again that the north is seeing the biggest single investment in rail for many decades.

[Stephen Hammond (Wimbledon) (Con)]

10. What plans he has to issue safeguarding directions for the unsafeguarded sections of the Crossrail 2 route.

[The Parliamentary Under-Secretary of State for Transport (Paul Maynard)]

A thorough analysis of the Crossrail 2 business case is being carried out by the Department to ensure it is a robust scheme, as is undertaken for all transport scheme proposals. Once this analysis has been completed, the Secretary of State will be in a position to outline the next steps on Crossrail 2, which will include any discussions and decisions on future plans for updating the current safeguarding directions.

[Stephen Hammond]

I listened carefully to the Minister’s answer. However, the delay to Crossrail 2 is causing real anxiety to constituents in Wimbledon and across south London and causing investment decisions to be delayed. Will he urge the Mayor to get on with the funding proposals so that the Department can make a decision one way or the other?

[Paul Maynard]

As Members have heard this morning, we have regular meetings with the Mayor. I assure my hon. Friend that one of the most common topics for discussion is how to ensure that Crossrail 2 is both affordable and fair to the taxpayer. It is really important that we do not unduly raise public expectations or, indeed, provoke undue concerns in relation to Crossrail 2 ahead of developing a fair, sustainable and deliverable funding plan.

--- Later in debate ---

[The Minister for Transport Legislation and Maritime (Mr John Hayes)]

This a very serious matter, and the hon. Gentleman and I have met to discuss these issues. I take a very clear view that we must be rigorous in the way that we deal with them. There have been disasters, such as the Louisa disaster in his constituency. The first thing to do is to offer commiserations to all those involved. As he knows, I have spoken to the chief inspector of the marine accident investigation branch. I have asked for his view, as quickly as possible, on the very issues the hon. Gentleman raises. I will keep in close touch with him and other Members when I hear that view.

[Stephen Hammond (Wimbledon) (Con)]

T5. There was widespread excitement last December when the Secretary of State announced a plan to publish a rail strategy document. Will he say what progress he has made and whether he will publish the report that his Department has commissioned on the future of rail franchising?

[Chris Grayling]

I expect to set out our further plans on the rail industry very shortly.

Air Travel Organisers’ Licensing Bill

Stephen Hammond Excerpts

3rd reading: House of Commons & Committee: 1st sitting: House of Commons & Report stage: House of Commons
Tuesday 11th July 2017 Commons Chamber

[Karl Turner]

The amendment would require the Government to review the impact of clause 1 to ensure that it does not adversely affect UK consumers using EU-based companies. Essentially, the clause updates ATOL—the air travel organisers’ licence—to ensure that it is harmonised with the 2015 EU package travel directive. The provision therefore extends ATOL to cover a wider range of holidays and protect more consumers. UK travel companies, we are told, will be able to sell more seamlessly across Europe, as they will need to comply with protections based not in the country of sale, but the country in which they are established. Those are the objectives that the Government seek to achieve. There is no difference of principle between the Government and the Opposition on this matter. Indeed, it is due to the package travel directive that it has been necessary to put such a provision into the Bill.

However, we seek clarification on some issues, which was why we tabled amendment 2. The amendment would provide a guarantee that the Government will review the impact of the ATOL revisions to ensure that they do not adversely affect UK consumers using EU-based companies. The whole idea of the clause is to improve the range of protections available. The broad substance of the changes to ATOL are necessary and are broadly welcome. As I said, they will harmonise UK law with the latest EU package travel directive, and that should have many benefits. A wider range of operators, including more dynamic package providers, are likely to be covered by the changes. That will hopefully bring protection to many more UK holidaymakers who are not covered under existing ATOL provisions.

For UK travel companies, standards will have to be in line with those of the country in which the company is established, rather than the place where the company sells the holiday. That should mean that companies established in the UK can sell far more seamlessly across Europe by simply adhering to the widely respected ATOL flag. However, the changes at the EU level could have adverse effects for UK consumers who purchase their holiday or travel from EU-based travel companies, rather than British companies that sell into other European countries.

Amendment 2 would address that issue. The changes made through the directive will now mean that EU-based companies selling in the UK will have to adhere to ATOL-equivalent insolvency protections laid out in the member state where the business is based. In practice, that could lead to unintended consequences and, more significantly, costs for UK consumers. Processes and timescales for recompense may be distinctly different from what many travellers would expect under the current ATOL provisions, which are in many ways regarded as the gold standard.

The impact assessment warns:

“If consumers purchase a trip from a business established elsewhere in the EU and the company becomes insolvent there may be some costs to the consumer of processing a claim with a non-UK insolvency protector.”

Based on the latest Civil Aviation Authority figures, this will affect not just a relatively small number of holidaymakers. If this goes wrong, more than 500,000 passengers could be compromised, so a significant number of people could be adversely affected. It is therefore important that the Government take steps to anticipate and prepare for any possible negative impacts.

Amendment 2 would achieve that by requiring the UK Government to monitor the impact on UK consumers using EU-based companies. That would help to inform whether the UK Government should consider issuing further guidance, or co-operating with consumers and member states to ensure that protections are adequate.

The changes envisaged by the clause clearly make sense and are in line with what is required under the package travel directive. There is no doubt that when UK-established companies are selling into other countries, the consumers in those countries will have the benefit of the gold standard of ATOL protection. However, we are concerned about the protection given by EU-based companies selling in the UK. We hope that it will be equivalent to that under ATOL, but it will be subject to the rules and regulations of the EU country concerned. We are nervous about whether UK holidaymakers could lose out, so we are asking the Government to consider the issue and to monitor the situation properly.

As with so many other things, the environment is changing, particularly in relation to Brexit. ATOL will still be there post-Brexit, but we will explore possible changes when we discuss the next group of amendments. The package travel directive will no doubt still be there for those states that will still be members of the EU. What is uncertain at this stage is what the interface will be between the two things post-Brexit.

[Stephen Hammond (Wimbledon) (Con)]

I have been following the hon. Gentleman’s line of thought carefully. He seems to be seeking full protection for UK consumers buying in the EU. The EU package travel directive applies while we are still a member of the EU, but when we cease to be a member, the repeal Bill will have put its provisions in UK legislation, so surely the hon. Gentleman’s argument is unnecessary.

[Karl Turner]

With respect, we do not know that yet, and nor do we know what the insolvency arrangements will be for companies abroad. The Government must address this real issue.

--- Later in debate ---

[Stephen Hammond]

rose—

[Karl Turner]

I will not give way.

We ask the Government to get the ball rolling within a year of the Bill receiving Royal Assent, but a regular review is also needed, particularly in the light of Brexit. Our amendment is supported by the Association of British Travel Agents and other travel organisations. Despite ministerial assurances, we want our amendment to be made to the Bill, so we will press it to a Division.

--- Later in debate ---

[Mr Hayes]

That is true and in a sense it is more catalysed by the changing character of communications and the way in which people organise and book their holidays than it is by our relationship with the continental countries of Europe. It is affected by both, but my hon. Friend is right to say that even if we were not leaving the European Union—and, my goodness, I am glad we are —we would still need to reflect on and consider changes that take account of the changing patterns of the way in which people organise and book their holidays. Indeed, he is right that the process of reflection, consultation, impact assessment and review needs to be a continual one.

Last year we consulted on the changes to the Civil Aviation Act 1982 that we are discussing today. We are about to launch a series of consultations on the detailed regulations that will follow, including on this particular issue. Each stage of the work will be the subject of impact assessments and consultations, so we will both consult and publish impact assessments on each stage of the changes that I have described and which will be drawn to the House’s attention by various hon. Members—

[Stephen Hammond]

rose—

[Mr Hayes]

I see another hon. Friend who wishes to do so.

[Stephen Hammond]

I always hesitate to stop the Minister in full flow because he is such a joy to hear. Surely his commitment is the key point, because the Government consulted in 2012 and have committed to consulting in bringing in this legislation and aligning ATOL with the European directive. That needs to continue, because we will not transpose it into law until next year.

[Mr Hayes]

That is also true, and it is certainly true that we cannot be premature about imagining, or speculating about, the outcome of that process; but I think we can offer some certainty about our determination to consult on the arrangements in respect of this particular set of regulations—partly, of course, because they exist irrespective of the European Union. ATOL’s coincidental genesis with our entry to the European Union is just that, a coincidence. ATOL, I guess, would have existed regardless of our relationship with the European Union. Indeed, the regulatory and legislative framework that underpins it is domestic. So the domestic legislation that gave life to ATOL, and continues to do so, was very much at the behest of this Parliament, and of successive Governments—of all parties, by the way—who have continued to support that scheme.

--- Later in debate ---

[Mr Hayes]

That is of course right; the committee will look at all those matters in that context. I said that earlier. I have also said, however, that I want to go further and to ensure that this stands proud as an example of analysis. Of course the great repeal Bill and our relationship with the European Union are bound to be the context in which the committee considers these matters; I guess that that is true. However, these ATOL arrangements predate our relationship with the European Union, or, if they came into force at the same time, it was a coincidence. Given that they are framed in domestic legislation rather than European legislation, I believe that ATOL would have existed regardless of our association with the European Union.

[Stephen Hammond]

Just for clarity, when I intervened on the Opposition Front-Bench spokesman, he was making a point about insolvency, but the generous offer that my right hon. Friend just made would clearly cover insolvency as well.