Rail Franchising

Theresa Villiers Excerpts

Monday 3rd September 2012 Written Statements

[The Minister of State, Department for Transport (Mrs Theresa Villiers)]

On 15 August 2012 the Department for Transport announced to the London stock exchange that it intended to award the intercity west coast franchise to First West Coast Limited, a subsidiary of First Group.

Bids were received from Abellio InterCity West Coast Limited—NV Nederlandse Spoorwegen; First West Coast Limited—FirstGroup plc; Keolis/SNCF West Coast Limited—Keolis SA and SNCF; and Virgin Trains Limited—Virgin Group Holdings Limited.

The new franchise is planned to begin operation on Sunday 9 December 2012. The franchise will operate for a core term of 13 years and four months, with an option to be extended to operate for up to 15 years. The winning bid from First West Coast Limited provides for a premium of £5.5 billion net present value (NPV) over the core franchise term.

The west coast main line is one of the most important intercity rail passenger routes in the country and it is also a valuable public asset. Over the last decade and more, taxpayers have invested £9 billion to upgrade the infrastructure. It is a profitable franchise for the current operator and after significant public investment in the line the Government are rightly seeking to get a substantial return for passengers and taxpayers.

The First West Coast bid provides: more trains on the route, with 12,000 extra seats per day provided by 11 new six-carriage electric trains from December 2016 (in addition to the 106 extra Pendolino carriages currently being introduced); refurbishing the existing Pendolino and Voyager train fleets, more capacity on services between Birmingham and Scotland, and faster journey times between London Euston and Glasgow; new services to Blackpool, Bolton and Shrewsbury, subject to approval of the Office of Rail Regulation (ORR); lower standard anytime fares over the first two years; £22 million in station improvements; Oyster-style smart ticketing; and, for the first time in an intercity franchise, better customer satisfaction as measured by the national passenger survey.

When a new franchise begins, employees of the current franchise operator, including drivers, guards and back-office staff will be transferred to the new operator, protected by TUPE regulations. All of the rolling stock used by the incumbent operator will also transfer across.

Taken together, I believe that the commitments in First West Coast’s bid represent significant improvements for passengers and will provide a good return for the taxpayer.

As a result of a legal challenge, which the Government intend to defend robustly, we have not yet signed the contract with First West Coast, and consequently the competition remains live. I cannot give the full commercial details of the winning bid, or indeed of the other bids. Nor is it usual or appropriate—once litigation proceedings have commenced—for the Government to comment on the detail of that, other than to say that our legal advisers are fully engaged in addressing and responding to those proceedings.

I will continue to keep the House updated, subject to the constraints of legal or commercial privilege.

Red Tape Challenge

Theresa Villiers Excerpts

Tuesday 17th July 2012 Written Statements

[The Minister of State, Department for Transport (Mrs Theresa Villiers)]

Last November, the Department for Transport launched the rail transport theme of the red tape challenge—part of the Cabinet Office’s project to review all of the outstanding regulations currently on the statute book. Following a rigorous process of challenge, stakeholder discussion and public consultation, I am now pleased to be able to announce the results.

The Department put forward every secondary regulation relating to rail transportation for public discussion under the rail transport red tape challenge. Some 198 of these were judged still to be live with a further 23 being identified as already “lapsed or spent”. Of these 221, I propose to scrap, merge, simplify, amend or improve 88 (40%).

The detailed breakdown I propose is:

High Speed 2 (Heathrow)

Theresa Villiers Excerpts

Tuesday 17th July 2012 Westminster Hall

[Geoffrey Clifton-Brown]

That is why I think that world-class infrastructure is vital—for job creation and economic prosperity—but it is also vital, when spending these very large sums, to ensure that we have the best solution. I will go on to explain why I believe that my proposal not only is cheaper, but could be delivered quicker and will produce a better result.

As there is no airport in the UK larger and more important than Heathrow, which alone accounts for 1% of the UK’s GDP, should we not do whatever we can to improve rail links, including with the HS2 project, as I was saying to the hon. Gentleman? The Government have repeatedly stated their wish to see Heathrow become a “better, not bigger” airport, but Heathrow continues to grow in terms of the numbers of passengers using the airport. That is something that we should celebrate, frankly. However, air quality, congestion and delays are already significant issues at Heathrow and, in the case of the air quality, it is illegal. Without an integrated approach to surface access, Heathrow’s challenges can only get worse.

How would a direct link between Heathrow and HS2 help? The answer can be found in the Conservative party’s rail review, published in opposition by the Minister. Although she will not thank me for quoting it, I will nevertheless. It clearly sets out the benefits of integrating air and rail infrastructure. It states:

“Good connections to major airports…also significantly enhance the benefits of high speed rail. So a Conservative Government will support proposals…for a new Heathrow rail hub. This would link Heathrow terminals directly into the main rail network and the lines to Reading, Oxford, Bristol, Plymouth, Cardiff, Swansea, Cheltenham and Southampton, greatly improving public transport links to the airport.”

It also stated:

“The plan would also include construction of a new high speed link connecting Heathrow…to the Channel Tunnel Rail link and the new route north, providing a viable alternative to thousands of short haul flights now clogging up the airport. By freeing up landing slots, our proposal would help tackle overcrowding problems and allow more space for long haul flights, making Heathrow a much better airport, but without the environmental damage that would be caused by a third runway.”

I could not have put it better myself.

It is potentially billions of pounds cheaper to route the high-speed line via a Heathrow interchange on the Great Western main line, compared with the current proposal for the development of a series of branch lines, loops and spurs. The current costs of building HS2 from London to Birmingham, followed by a spur from HS2 to Heathrow and then a loop to rejoin the HS2 main line at Old Oak Common, is projected to be in the region of £20.5 billion to £20.7 billion. However, a connection along the lines that I am suggesting, between HS1 and HS2, connected directly to Heathrow and then on to Birmingham and further north, is projected to cost £17.5 billion, which represents a significant saving on the current proposal. That route, I believe, would be quicker to build, and the passage of the hybrid Bill through Parliament might well be easier, as there would be fewer objections.

Shifting passengers from road to rail and making Heathrow operate more efficiently by reducing passenger and aircraft overcrowding mean that the environmental impacts will be reduced. Let me give an example. Unite the Union calculates that a B747 taxiing and holding for 40 minutes on the ground—a not uncommon occurrence at Heathrow—uses as much fuel as it does at cruise altitude from the UK to New York. Of course, that not only contributes to Heathrow’s air quality failing to comply with legal limits, but increases airlines’ costs. Additionally, the relocation—the point that the hon. Member for Hayes and Harlington (John McDonnell) was making—of landside facilities outside the existing congested airport site will create more space for aircraft, allowing for more efficient operations. It is suggested that removing unnecessary ground facilities and streamlining the structures of the terminals at Heathrow could allow the creation of an additional 18% of air capacity in one fell swoop. Although that would not remove the demand for a third runway at Heathrow, it would certainly provide the breathing space necessary for the Government to undertake full consideration of the options available to them, as my hon. Friend the Member for Warwick and Leamington (Chris White) suggested.

A high-speed route via Heathrow also avoids the major environmental impacts of the current proposals on the Chilterns and west London. It would follow the example of HS1 by following motorway corridors and the shortest route through an area of outstanding natural beauty, with tunnelling below existing rail corridors where the new line passes through urban areas. The proposed route of HS2 will pass underground from Euston to Old Oak Common before moving overground through large parts of densely populated west London. The line then goes through 20.8 km of an AONB, of which 7.6 km will be above ground and the remaining 13.2 km in a tunnel.

My alternative route via Heathrow would see the entire route through west London tunnelled underneath the Great Western main line before surfacing near Heathrow. Of course, that would involve significantly more tunnelling in London than the current proposals. However, the greatest costs of tunnelling are in the initial set-up. The cost per mile of tunnelling drops as we tunnel further. That approach would greatly reduce noise and air pollution during the construction phase for very large numbers of people. It would follow the precedent set by HS1: much of the line is tunnelled under London, with only a 1-mile section approaching St Pancras overground. It would then have far less surface impact than the current HS2 route, which will pass overground through vast swathes of west London.

The line would then proceed overground to Beaconsfield in the M40 corridor before entering a 12-km tunnel through the entire width of the Chilterns AONB at its narrowest point. In other words, the impact on the Chilterns would be minimised. This tunnel not only would be shorter, but would remove almost entirely the impact of HS2 on the AONB. That might assuage the extremely vocal and well funded local opposition groups that have been set up and that are heavily involved in the judicial review proceedings against the Government in relation to the current HS2 proposals.

Directly connecting Heathrow with the UK’s regions and Europe in the first phase of high speed rail allows rail to replace both domestic and European short-haul flights, releasing vital additional capacity and resilience while linking the UK’s regions to the country’s hub airport. Improving access from the UK regions to Heathrow, our only hub, means that business links with global markets are improved, giving passengers the choice of flying via Heathrow or from regional airports.

I am sure that the hon. Member for Hayes and Harlington would agree with this. The UK is beginning to lose the aviation advantage that we have consistently had in the past by offering more flights to Asia. Heathrow is now losing out to airports such as Charles de Gaulle, Schiphol and Frankfurt, which are offering more flights to Asian destinations. The knock-on effect is that businesses—

[The Minister of State, Department for Transport (Mrs Theresa Villiers)]

That is just not true. Heathrow is one of the most successful hub airports in the world. It offers more flights to BRIC destinations; it offers more flights to China than any of its continental rivals. London is arguably the best-connected city in the world, with far more connections than equivalent cities around Europe, including connections to 360 destinations worldwide.

[Geoffrey Clifton-Brown]

With great respect to my right hon. Friend, that may be true for routes to north America, but I think that it is beginning to be—[Hon. Members: “No.”] Let us look at the figures. I think that for secondary Chinese airports, Frankfurt is beginning to overtake Heathrow. I am happy to stand corrected on that, if it is not true. The knock-on effect is that businesses are likely to locate to where the best air connections are, not only for passengers but for freight.

Are there any disadvantages to the approach I am outlining? The answer, in my view, is not really. Birmingham is as far west of London as it is north, so it is incorrect to say that a route west of HS2’s alignment is somehow taking the line out of its way. A diversion of HS2 via Heathrow will add perhaps only three minutes to journey time for trains to stop at Heathrow. I suggest that that is immaterial when set against the benefits I outline. Indeed, British Airways and HS2’s own external challenge groups confirm that, in reality, passengers do not ascribe any value to such small journey time savings, and claiming that each minute saved is worth £0.6 billion seems rather simplistic.

The direct linking of Heathrow and HS2 and improved access to Heathrow from the west would provide enormous benefits to the people and businesses in my constituency and many others to the west of Heathrow. It is, as I have said, vital, given the costs involved, that we maximise the benefits of high-speed rail.

I am fully supportive of the project in principle, and I am certainly not calling for the Government to abandon and give up on all the good work they have done so far. I would urge the Minister however to use the opportunity, before the hybrid Bill is introduced to Parliament, to pause and reflect on whether the direction we are taking, both physically and metaphorically, is the right one. If we take time to consider an integrated approach to air and rail, we can consider the entire HS2 route at the same time. We could then start construction from both north and south in order that the completion date is not extended.

Though it is obviously only one element of the HS2 project, the decreasing business case ratio for HS2, which now stands at 1.2:1, is another reason why we should examine the matter further. Indeed, as the Secretary of State’s predecessor, the now Secretary of State for Defence, my right hon. Friend the Member for Runnymede and Weybridge (Mr Hammond), said in evidence to the Select Committee on Transport:

“If it”

—the business case ratio—

“were to fall much below 1.5, I would certainly be putting it under some very close scrutiny.”

Given the importance of putting in place world-class infrastructure, it is vital that the Government retain an open mind. I look forward to hearing what my right hon. Friend the Minister has to say on the matter. I would be grateful if she agreed to meet me and other interested colleagues once Parliament has returned in September, to discuss this matter in further detail.

Not only would the hub proposal enormously improve road, rail and air connectivity, it is also a win-win: it is potentially cheaper; the disturbance and environmental pollution in densely populated areas of London is reduced; the damage to the Chilterns AONB is far less; and the connectivity to Heathrow for my constituents, businesses in the Cotswolds and others in the west, south-west and Wales is greatly improved. In short, it is the sort of strategic infrastructure investment that the UK needs to project us back towards the top echelons of global competitiveness for the duration of the 21st century.

--- Later in debate ---

[John Woodcock]

That, I know, is a continuing and important longer-term issue for High Speed 2. Every time it is raised it is incumbent on us all to stress that even the first phase, as it is currently set out, would reduce journey times to Scotland. Obviously the further north the high-speed line goes, the faster those journey times will be, which we all want.

A western link would provide welcome improved connections, as will the commencement of Crossrail in 2018; but if Heathrow is to function better as a major national airport it needs national connectivity. The airport currently has 70 million passengers a year. Whatever decisions are eventually made on south-east expansion—if they are made—Heathrow will remain dominant for the foreseeable future. Yet for much of the country, it is cosmically hard to access, at present, except by car or a domestic flight. To take the example of my constituents in south Cumbria, there are many business or holiday destinations to which only Heathrow offers a direct flight, and if people want to avoid a five-hour drive and hefty parking charges they consider taking the train. However, they find that that will take just as long and will require four changes, which is not much fun for people with a lot of luggage, those with a young family, or people who have limited mobility. Instead, many take a domestic flight from Manchester, at financial and environmental cost, or they fly via a European hub airport.

High Speed 2 could help to solve that problem and significantly strengthen Heathrow as a truly national airport. Linking Heathrow into HS2 at the earliest possible opportunity would allow for faster, far better integrated journeys between the airport and various northern destinations. Connecting Heathrow would, as has been well explained in several speeches today, make it possible to boost the economies of the regions, reduce road congestion and cut short-haul flights, and, in doing so, begin to address Heathrow’s chronic capacity problem. We deeply regret, therefore, that Ministers have chosen to reject Labour’s call for the first phase of HS2 to run via Heathrow. Instead, they have opted thus far for an expensive branch line, which it appears will not even be legislated for as part of phase 1 and will not be built until an unspecified future date. Can the Minister provide any more clarity on that point?

An Old Oak Common interchange with Crossrail would indeed make for an easier journey to Heathrow for many people; but it is no substitute, as has been explained today, for a through train. As the hon. Member for the Cotswolds eloquently explained, the sad thing is that the Minister used to get that. If she does not mind, I shall quote her. In March 2010, just before the general election—how things change—she told the House of Commons that

“the idea that some kind of ‘Wormwood Scrubs international’ station is the best rail solution for Heathrow is just not credible.”—[Official Report, 11 March 2010; Vol. 507, c. 451.]

Hear, hear: but just two years on, that is exactly what the Minister proposes—at least until 2033. Why the volte face? Will she take this opportunity to condemn the potentially deeply damaging briefings from somewhere in Government, suggesting a wobble on the entire project? If she is not wobbling, it is important that she should say so now, and I am delighted to give way.

[Mrs Villiers]

There is no wobble on this project. HS2 is going ahead.

[John Woodcock]

The Minister is not for wobbling and we are very pleased to hear it.

Any aviation strategy—and it would be nice to have one—must have as its starting point maximising the efficiency of the capacity that already exists. It is far better to use a slot to land 600 passengers from Beijing than 200 from Manchester. Ministers are right to cite, in their recent document, the potential for code sharing to promote through tickets from international flights to trains; but the key to that success is that the high-speed train should stop at the airport, not several miles away. Further, as has been mentioned, an HS2 link into Heathrow could provide a connection to the existing line to the channel tunnel, raising the possibility of high-speed trains replacing hub flights to nearby European destinations.

There is still time for Ministers to reconsider their stance on HS2. The right hon. Lady knows that high-speed rail commands support across the House. It has the full support of the Opposition, and we are keen to work together to get the necessary legislation on the statute book and to get spades in the ground. However, we will continue to argue that Heathrow should be part of phase 1 of the scheme. A failure to connect Britain’s hub airport to its first domestic high-speed line would epitomise the failure to join up UK infrastructure planning—a failure in transport that has bedevilled the country for too long.

[The Minister of State, Department for Transport (Mrs Theresa Villiers)]

It is a pleasure to respond to an interesting and well-informed debate. I congratulate, as other hon. Members have done, my hon. Friend the Member for The Cotswolds (Geoffrey Clifton-Brown) on securing it and on his thoughtful and insightful speech on his ideas for the route options for HS2. I thank him and other hon. Members for the support that they have expressed for the announcements that we made yesterday on improving the rail network and for their support in principle for the dramatic further improvement that we will deliver with the HS2 project. It is always welcome to hear Opposition Front Benchers repeat their support for high-speed rail, because it is only with cross-party support that projects of such magnitude can be successful.

The Government have put transport at the heart of their strategy for economic growth and recovery, because improving our transport system is one of the best ways to support British jobs, boost business and create growth. That is one reason for our commitment to the biggest rail capacity expansion programme since the Victorian era. Yesterday, we added a further major package of projects to that already ambitious programme.

We fully accept the importance of high-quality surface access to airports, and we emphasised that point in the aviation framework document that we published last week. We are co-ordinating our rail and aviation policies, and I fully agree with the points made this afternoon about the importance of co-ordination and integration, between air and rail on the ground and in the decision and policy-making processes. That point was made by my hon. and great Friend the Member for South Swindon (Mr Buckland), and by my hon. Friends the Members for The Cotswolds and for Milton Keynes South (Iain Stewart). [Interruption.] Well, I have known my hon. Friend the Member for South Swindon for 20 years, so he gets an extra-warm mention whenever we are in a debate together.

Reliable rail and road access can obviously contribute greatly to the quality of the passenger experience at our airports, and it is an important component in ensuring that our airports provide high-quality international gateways. It is particularly important to airport workers and crucial to the air freight sector, which is another important UK industry. I agree with my hon. Friend the Member for The Cotswolds that greater use of rail access to airports has the potential to reduce carbon emissions, as well as relieving road congestion, and also improving air quality, which is a real issue at Heathrow.

[Mr Donohoe]

I am sure that the Minister has listened to my questions to some of the other contributors this afternoon. Can she tell us how long it takes the passenger who gets out of a plane at terminal 4 to get to terminal 1, and what distance they travel?

[Mrs Villiers]

Certainly. It takes passenger a while to get from terminal 4 to the other terminals. The hon. Gentleman is right to raise that issue about Heathrow’s current layout, and I will come to it in a moment. Despite the adversities, however, Heathrow continues to be a successful airport. I appreciate and understand the point of view of my hon. Friend the Member for The Cotswolds, but one of the fundamental drawbacks of his proposed rail hub at Iver, to support Heathrow, is that it would be more than three miles from the airport terminals. What my hon. Friend advocates would compound the problem that the hon. Member for Central Ayrshire (Mr Donohoe) has just alluded to, which is that Heathrow is already very spread out.

Returning for a moment to the environmental impact of surface access, I welcome the comments made by the hon. Member for Barrow and Furness (John Woodcock). It is important that we all focus on the environmental impact of surface access, as well on that of aviation. We are committed to working with airport operators, local authorities and local enterprise partnerships to improve surface access to our major airports across the country. Time constrains me from going into detail, but improvements are under way in Manchester and Birmingham, and Luton will get better road access and Gatwick a new station. A tremendous amount of work is under way to improve access at a number of airports.

[Geoffrey Clifton-Brown]

My right hon. Friend is making a helpful speech, but I would not like the four interventions made by the hon. Member for Central Ayrshire (Mr Donohoe) to colour the debate. With innovative solutions, it is possible for travellers, having checked their bags in at the hub that I propose—or others propose—to get in to a more rationalised Heathrow airport and on to an aeroplane via high-speed rail at considerably increased speeds.

[Mrs Villiers]

But it remains the case that among the downsides of my hon. Friend’s suggestion are the distance from the terminals, the lack of a serious proposal about how that distance will be travelled and a failure to cost the idea.

Returning to the work that is being done on rail access to Heathrow—the subject of the debate—Crossrail is now well under way, more than two decades since it was first proposed, and the tunnel boring machines have started their journey under central London. We expect the Crossrail project to provide new services that link Heathrow directly with the west end, the City and Canary Wharf for the first time. The 2010 spending review confirmed the Government’s shared commitment with the Mayor to the tube upgrade programme, which will increase the overall capacity of the London underground network by 30% and improve reliability, benefiting people travelling to Heathrow by tube.

Last week, as has been acknowledged, we announced as part of our aviation policy framework that the Government will provide funding for a new rail line to Heathrow from the Great Western main line near Slough. It would provide significantly improved connections from destinations west of the airport—a point already made—and would cut journey times from those destinations by as much as half an hour. Easier, faster and more convenient access to one of the world’s busiest and most successful airports should provide a significant boost to the economies of the Thames valley, south Wales and the west and south-west of England.

I very much welcome the enthusiasm shown by my hon. Friend the Member for Milton Keynes South about how we might seek to take advantage of the electrification and east-west rail proposals, to see if we can further improve and enhance access to Heathrow airport.

The shadow Minister asked a number of questions about the project. More work is needed to refine it and assess delivery time scales over the coming months, including the consideration of route options. The scheme remains subject to the delivery of a robust business case, and we hope to secure funding contributions from the Heathrow aviation community.

[Mr Donohoe]

When this issue was presented to the House, at the outset, an area of some dubiety was that tunnelling would be cheaper than putting rail above ground. I have talked to a number of civil engineers, and none of them believes in that prospect. Can the Minister shed any light on where the information came from?

[Dr William McCrea (in the Chair)]

I know that the Minister is delighted to look towards her very good friend, and her other hon. Friends, but it is always nice if you turn towards the Chair and look also at Opposition Members.

[Mrs Villiers]

I do apologise, Dr McCrea, and I shall ensure that I project more efficiently around the room. I have now completely forgotten what the hon. Gentleman asked me about.

[Mr Donohoe]

Tunnelling.

[Mrs Villiers]

Yes. It depends on the circumstances. It is important to appreciate that a significant cost associated with tunnelling is the disposal of spoil. In certain instances, combining two tunnels might reduce the cost of such disposal, so tunnelling does not end up cheaper than doing something on the surface in every case. However, where we can get synergies between two different projects that reduce the cost of spoil disposal, we can deliver an overall reduction in cost.

On the route options, whether for western access to Heathrow via conventional rail or, in due course, the high-speed rail spur to the airport, we will seriously consider what is viable regarding tunnelling, just as we have done in relation to the rest of the HS2 route. It is too early to make the decisions because they are subject to consultation and further processes, but we will, of course, seriously consider that, given the areas through which the new lines would go.

In response to the question asked by the hon. Member for Barrow and Furness, if things progress smoothly, the new line giving western access to Heathrow could be operational by around 2020 or 2022. No final decisions have yet been made on timetables for direct trains, but we expect there to be through trains from destinations in the west, because that would be the better way to realise the benefits of the programme.

Our high-level output specification proposals, announced last week, to improve access to Heathrow from the west will complement our work on HS2, which we expect to provide greatly improved access to the airport from destinations in the midlands and the north of England. We are taking a phased approach to HS2.

In phase 1, when the London to Birmingham line is built, we want passengers from the west midlands, Manchester and other cities in the north to be able to connect as seamlessly as possible with the Heathrow Express at a new station at Old Oak common. Phase 1 is expected to open in 2026, and will include a direct connection to Birmingham airport. I welcome the interesting ideas proposed by my hon. Friend the Member for Milton Keynes South about how we might use that improved surface access to Birmingham to help the airport flourish and attract more aviation passengers, potentially from the south-east, given the improved rail access that HS2 will deliver.

Phase 2 will follow in 2032-33, when the HS2 line will be extended to Manchester and Leeds. A direct connection with Heathrow is planned as part of the second phase.

[John Woodcock]

Why has the Minister changed her mind? Has the Secretary of State for Transport just taken a different view?

[Mrs Villiers]

A huge amount of work has been done to analyse the options, including one of the biggest consultations ever undertaken in this country. I would be arrogant to ignore the results of that work and that consultation. I am absolutely convinced that the preferred route, which will be proposed in a hybrid Bill, is the right one, and I will explain why in due course.

[John Woodcock]

You have not said that you agree with it.

[Mrs Villiers]

I do agree with it. I give the shadow Minister my firm assurance that the preferred route that we are proposing, after the consultation and consideration of all the consultation responses, is the right one.

[Mr Donohoe]

May I show the Minister a poster that I picked up in Wendover on Sunday? It does not give us much hope that constituents in that part of the world are likely to have as much enthusiasm as us about the building of HS2.

[Mrs Villiers]

It is inevitable, when one seeks to build a major piece of infrastructure, that it will cause anxiety in the areas in which it will have a local impact. I will come in a moment to the efforts that the Government have been making to mitigate or reduce the impact of HS2. We fully understand the anxiety felt by those in the local areas affected and by those with wider concerns about protecting the countryside, but as I have said in the House many times, I firmly believe that, with high-quality engineering and care, we can mitigate the worst effects of HS2 and emulate the success of HS1, which has been delivered without the catastrophic local impacts once predicted for it. I believe that it is possible to deliver infrastructure on that scale in a way that is fair to the local communities affected by it. The Government are determined to do all that is reasonable to ensure that we mitigate the local impact of HS2.

To pick up where I left off, the Government’s preferred option for delivering the direct connection to Heathrow is a spur running from the main HS2 line, which would allow passengers from the midlands and the north to travel directly to the airport without having to change trains. Some of my hon. Friends and colleagues, including my hon. Friends the Member for The Cotswolds and for Milton Keynes South, asked for a pause. I assure them that other options, including a direct alignment that would have taken the line to Birmingham nearer to Heathrow, were considered before deciding on the preferred route that was presented for consultation.

Further thought and analysis was carried out on direct alignment as part of the consultation and the Government’s consideration of the many thousands of responses. As I said, it was one of the most extensive consultations ever carried out, and I am confident that the outcome is the right one. I assure my hon. Friends that further scrutiny will take place when the hybrid Bill goes through Parliament.

After the consultation and analysis were completed, it was decided that a spur to Heathrow would provide the better option, and it was concluded that the proposal advocated by my hon. Friend the Member for The Cotswolds would have involved too great a journey time penalty and too much extra cost and, as I said, would not have taken the line to the airport. The site at Iver, the proposal for which he supports, is more than three miles from the airport terminals.

[Geoffrey Clifton-Brown]

I appreciate my right hon. Friend’s sincere belief in the Government’s preferred solution rather than the option that I proposed, but I am trying to get something out of this debate. Will she carefully consider building the Heathrow spur in the first phase of HS2, so that at least the residents of Birmingham and Birmingham airport can get the benefit of that spur as soon as possible? Will she also consider the northward-facing aspect of the spur, so that at least it can be used from central London, as well as by those approaching London from the north?

[Mrs Villiers]

I will come to timing in a moment. We are enthusiastic about making progress on all aspects of HS2 as soon as we can. If we can speed up the process, we will be delighted to do so, but as I said, I will come in a moment to the timing of the next steps on phase 2 and the spur. I assure my hon. Friend that the spur is planned to have what is known as a delta junction, which could enable trains to run from Heathrow on to HS1, and possibly on to European destinations, when the spur is built.

On the timetable, the Government have asked HS2 Ltd to develop detailed route options for the spur. The plans will then be subject to detailed public consultation in 2014, alongside the rest of phase 2. If possible, we would like to make fast progress and start the consultation next year. Depending on the results of that consultation, the spur could be included in the hybrid Bill for the second phase, including the Y network.

HS2 represents a valuable opportunity to draw important strategic links between major components of our transport infrastructure. As my hon. Friend mentioned, other countries have successfully integrated high-speed rail services with their international airports. Using HS2 to improve access to the country’s major hub airport for businesses in the midlands and the north will create new opportunities for growth. Better links to Heathrow will make those regions even more attractive locations to invest and do business in, because they will benefit from Heathrow’s global reach as a successful hub airport.

As I said earlier, London has one of the most extensive aviation networks in the world, with connections to more than 360 destinations. Heathrow alone has more flights to the crucial BRIC economies than any of its rivals, including more flights to China. Airlines are expanding and covering new routes to key emerging markets. For example, British Airways recently started a new route to Seoul.

I agree with my hon. Friend and other hon. Members that we should look to HS2 to provide an attractive alternative to thousands of short-haul flights. Experience in Europe shows that where high-speed rail competes with aviation, it can capture a significant proportion of the market for journeys of up to three or even four hours. For example, Air France stopped flying between Paris and Brussels entirely when the high-speed rail link opened between the two cities, and high-speed rail in Spain led to a significant switch from domestic aviation to the train. Deutsche Bahn proposes to start direct services between London, Amsterdam and Paris, so the train could start to compete with the plane for some passengers on those routes, just as Eurostar already does on the Paris-Brussels-London route.

[Mr Donohoe]

There has even been a change domestically: BA has removed all services from Birmingham to London as a result of the upgrading of the west coast main line.

[Mrs Villiers]

Absolutely. The upgrading of the west coast main line encouraged a switch from air to rail travel from Manchester as well.

I believe that the HS2 plans that I have outlined have the potential to deliver further air to rail switch. In particular, the completion of phase 2 will deliver journey times between Edinburgh or Glasgow and London of not much more than three and a half hours. In 2010, there were about 382 flights a week between those destinations and Heathrow, and about 962 flights a week to the five London airports from Glasgow and Edinburgh.

Providing an attractive alternative to those flights could release vital capacity, which could provide opportunities for developing new routes to emerging markets and other key long-haul destinations in just the way that my hon. Friend the Member for The Cotswolds and others have outlined today. Better integration of rail and air in terms of flight schedules, through-ticketing and baggage check-in could intensify the switch from the plan to the train. The shadow Minister has made a valid point on those maters.

No debate on HS2 would be complete without reference to the local environmental impact. I fully recognise people’s concerns about the local environmental impact of HS2 and the preferred route, including the potential impact of a proposed Heathrow spur. There is no easy way to build a new train line through our country. I am afraid that the alignment proposed by my hon. Friend and supported by Mark Bostock would not be a miracle solution. Local impacts would still have to be considered, and, frankly, there would still be controversy. It would just be transplanted to a different area.

We have gone to very great lengths to listen to those with concerns about our preferred route and to take steps to mitigate its local impact. In particular, we are working to respond to the concerns of communities around Euston, where the station redevelopment impacts most on homes and communities. The Secretary of State for Transport regularly meets elected representatives from the area; we are working with Camden council; and we have already agreed to fund the Euston opportunity area planning framework to address the issues raised by the planned Euston expansion, including the investigation of options for the provision of replacement social housing. Elsewhere on the route, there will be a more than 50% increase in tunnel or green tunnel compared with the plans that we inherited from our Labour predecessors.

As I have said many times, I believe that, with the right mitigation and high-quality engineering, HS2 need not have anything like the extreme impact that its opponents fear. The precedent provided by HS1 shows that it is possible to have a high-speed line that does not devastate the communities through which it passes.

There are difficult times ahead, whether in relation to the main part of HS2 or to the Heathrow spur under discussion, but I firmly believe that this project will generate tremendous economic benefits. It is vital if we are to deal with the capacity crunch that we will face on our inter-city rail connections in the coming years, and that is why I welcome the support that has been expressed for HS2 in today’s debate.

[Dr William McCrea (in the Chair)]

Thank you, Minister, and I also thank all the hon. Members who have participated in the debate. I wish those Members who will now leave the Chamber a very pleasant recess.

Crossrail (Annual Update)

Theresa Villiers Excerpts

Tuesday 10th July 2012 Written Statements

[The Minister of State, Department for Transport (Mrs Theresa Villiers)]

Crossrail is now moving firmly into its construction phase. A number of significant milestones have been achieved in the last 12 months. The purpose-built tunnelling and underground construction academy was opened in East London last year and welcomed its first students in September 2011. Tunnelling began in May, with the first tunnel boring machine launched at the Royal Oak portal in west London. Construction contracts for Paddington, Farringdon, Whitechapel, Tottenham Court Road and Liverpool Street stations have been awarded. The Canary Wharf station box structure is now complete. The invitation to negotiate for the Crossrail rolling stock and depot contract was launched by Crossrail Ltd on 28 February, with the first round of tenders due to be returned during late summer.

To reduce the number of lorry movements, excavated material from Crossrail’s western tunnels has started to be transported directly from Royal Oak to Northfleet in Kent by rail. A former freight line from the north Kent line has been completely reconstructed to enable freight train movements from London. Two thirds of excavated material generated by tunnel, station and shafts construction will be taken to Northfleet and transferred by ship to create a new 1,500 acre nature reserve at Wallasea Island in Essex.

Network Rail is responsible for delivering improvements on the existing surface sections of the Crossrail route. The overall target price for these works was approved in April 2012 and was within the £2.3 billion funding envelope. Network Rail has also begun construction of the expanded Stockley flyover in west London to enable higher frequency Crossrail trains to operate to Heathrow airport.

Crossrail services are on schedule to be operational from 2018 with full services operating from late 2019. 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.

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 13 July 2011. The relevant information is as follows:

Aviation

Theresa Villiers Excerpts

Wednesday 4th July 2012 Westminster Hall

[The Minister of State, Department for Transport (Mrs Theresa Villiers)]

Before my hon. Friend does so, will he say if he welcomes the fact that Heathrow delivers more flights to China than any of its continental rivals, meaning that we have excellent connectivity to important emerging markets such as China?

[Mark Reckless]

Yes, I hugely welcome that. From listening to the debate that is dominated by a small number of players with the strongest vested interests and the most public relations consultants, one would get almost the reverse impression. When we talk about flights to China, it is important to remember that the reason why we have relatively few different city destinations—that is separate from the overall number of flights, which the Minister was right to raise and I think is more important—is that it is for the convenience of British Airways, the dominant player at Heathrow, to use Hong Kong as a hub airport for China, in exactly the way that it uses Heathrow as a hub here, through the Oneworld alliance and Cathay Pacific.

--- Later in debate ---

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

It is a pleasure to see you in the Chair, Mr Dobbin. I congratulate the hon. Member for Rochester and Strood (Mark Reckless) on securing this important debate. We all keenly anticipate the publication of the Government’s consultation documents—a subject that I will come back to later. If they had already published them, we might not have needed this debate. None the less, this is a great opportunity for the Minister to update us on the documents.

As many Members have said, aviation is a success story, whether we are talking about the Scottish airports, Manchester, Birmingham, East Midlands, or the other regional airports. The focus of this debate, and the focus generally in recent years, has been on London and the south-east. The third runway debate has overshadowed the excellent work, which a number of colleagues have mentioned, being done at Gatwick, London City, Luton and Stansted, but the capacity of the south-east remains the big issue.

Our aviation industry is central to our economic prosperity and should be a key driver of growth, without which we have no prospect of emerging from the dangerous economic situation that we are in. The industry contributes at least £11 billion to UK GDP—more than 1% of the total—although briefings for this debate state that the figure is £23 billion. It also supports up to 200,000 jobs directly and 600,000 indirectly across the UK. However, just as the Government do not have a credible strategy for growth, they have not yet managed to set out a credible strategy for aviation, let alone the role that it could play in our economic situation. Aviation is a crucial sector on which our economy depends, and the reaction from business to the Government’s decision not to set out an aviation strategy until the latter part of this Parliament has ranged from incredulity to plain bemusement.

[Mrs Villiers]

Will the hon. Gentleman give way?

[Jim Fitzpatrick]

If the Minister will allow me to get to end of my remarks, I will be happy to give way to her. I hope that I will be able to give way, but I am constrained by time.

The chairman of the Airport Operators Association, Mr Ed Anderson, has said that, while the industry knows what the Government are against,

“we are not sure yet what it is in favour of”.

He went on to describe “better, not bigger” as an “election slogan”, saying:

“Better not bigger doesn’t constitute a strategy.”

Sir David Rowlands, a former permanent secretary at the Department for Transport, has described the Government’s policy as “mildly extraordinary”. Baroness Valentine, who speaks for London First, said earlier this year that the

“government seems content for aviation policy to drift.”—[Official Report, House of Lords, 24 March 2011; Vol. 726, c. 872.]

She has also said, most damningly, that

“the Government’s aviation strategy is damaging our economy and enhancing that of our EU rivals.”

Seventy-four business leaders wrote to The Times, saying that setting a long-term strategic direction for aviation in London, the wider south-east and across the country is a vital part of delivering the growth and jobs the country needs. They concluded that all options must be considered—short term and long term—to address growing demand. Only last week, John Longworth, the director general of the British Chambers of Commerce, said:

“The Government must stop tiptoeing around on aviation because of short-term political considerations. Unless politicians grasp the nettle and make some tough decisions, both our export and inward investment potential will suffer.”

I hope that the Minister will indicate when we will be able to see the consultation documents.

[Mrs Villiers]

Will the hon. Gentleman give way?

[Jim Fitzpatrick]

I assure the Minister that if I finish what I have to say by 10.47 or 10.48 am, I will give way to her, but I want to get my points on the record.

The hon. Member for Orpington (Joseph Johnson), who is no longer present, gave a couple of quotes from the Mayor of London’s briefing. To save time, I will not repeat what he said, but he did not cite two points—although others have mentioned this—relating to the loss of visitors to the UK. The Mayor’s briefing states:

“While France and Germany each managed to attract between 500,000 and 700,000 visitors from China in 2010, the UK had only 127,000. In total, France earns £1.3bn per year from Chinese tourist spending on visits in the country, compared to the UK’s Chinese tourist spending receipts of £115m.”

It also notes:

“France’s hub airport, Paris Charles de Gaulle (56 departures per week), has better connections to Brazil than Heathrow (27 departures per week). In 2009, inward investment from Brazil totalled $800m in France, and only $1.7m in the UK.”

The Mayor has a strong argument on those figures.

The Government seem to accept that there is a capacity issue. In the Budget statement, the Chancellor referred to south-east capacity, as did the Prime Minister in response to a question from the hon. Member for Richmond Park (Zac Goldsmith) during Prime Minister’s questions. As I have said, we are waiting for the Government’s consultation document to indicate their likely direction of travel. Constraints on aviation, whether from a lack of capacity or lack of investment, will not stop flights happening—or increasing. As Members have said, those constraints will simply displace flights from the UK to Schiphol, Charles de Gaulle or elsewhere.

The hon. Member for Rochester and Strood effectively articulated the arguments against the proposed estuary airport. He made some interesting points about EU competition law, and I will consider them carefully.

My hon. Friend the Member for Blackley and Broughton (Graham Stringer) spoke with great authority on the issue, as he always does. He mentioned in passing other factors that affect aviation, such as air passenger duty, which was also mentioned by other colleagues. Nobody developed the argument, but APD is a huge factor in whether people decide to go to the UK or elsewhere in Europe. Given that it brings in between £2 billion and £3 billion for the Treasury, it will not surrender APD, but that is a factor and it needs to be looked at.

Another big issue that affects our economic performance is visas and the obstacles we place in the way of people who want to come to the UK, particularly from China. Moreover, as we discussed at length during deliberations in the Civil Aviation Bill Committee, the performance of the UK Border Agency—I accept that it is not the Minister’s responsibility—is harming the way that potential tourists and business visitors perceive the UK, because of what they read and hear in the media.

Lack of time meant that we did not have the opportunity to hear a lecture by the hon. Member for Blackpool North and Cleveleys (Paul Maynard) on hub dynamics. I would be interested to read it, so perhaps he could send me a copy. He made the point about the decline in our aviation industry and the rise of Schiphol and Charles de Gaulle.

The hon. Member for Strangford (Jim Shannon) reinforced the points about connectivity and regional access, and the hon. Member for Cambridge (Dr Huppert) raised the issue of emissions. That issue has to be addressed, and we were addressing it when we were in government. The industry was confident that it could meet the levels set, but it meant using the emissions trading scheme, with the expectation that emissions would rise and that the industry would have to offset them elsewhere within the industry.

[Jim Fitzpatrick]

I assure the hon. Gentleman that I have nearly finished—I have three minutes left—and will give way to him when I have done so.

As I was saying, the industry was confident that it could meet the levels set, but the bottom line is that Lib Dem policy on aviation is the obstacle to the Government having any policy at all, certainly before 2015.

The hon. Member for Poole (Mr Syms) mentioned the need for more capacity and made the case for Stansted, and the hon. Member for Amber Valley (Nigel Mills) asked how we can give more support to regional airports and proposed deregulation.

The aviation industry and Britain’s wider business community came together last week to call for a cross-party consensus on aviation that lasts beyond the term of one Parliament. For several months, the shadow Secretary of State, my hon. Friend the Member for Garston and Halewood (Maria Eagle), has repeatedly offered to take the politics out of aviation, put party differences aside and work together on a joint aviation strategy for the good of the nation. It is a clear, unambiguous offer, with no catch. Aviation matters to the country, the economy and businesses and families throughout the country. It is an industry that needs stability in the long term and a long-term plan that straddles Parliaments and Governments. We must not repeat the party political wrangling that turned the proposed third runway at Heathrow into a political football, and we must agree to stick to the agreed strategy, whatever the outcome at the next election.

[Mrs Villiers]

These issues are very important, so why have the Opposition not suggested any ideas for dealing with the long-term capacity challenges in the south-east? They have suggested nothing at all.

[Jim Fitzpatrick]

The Minister knows that we had a game plan in place, but we lost the election. Then, as a gesture, to try to achieve national consensus on this important issue, we said that we would drop support for the third runway so that we could have cross-party talks. We have not even had the courtesy of a reply from the Secretary of State for Transport about engaging in talks. Until the Government introduce their consultation—it is they, not the Opposition, who are responsible for creating aviation policy—it is a bit rich of the Minister to ask me about policy.

--- Later in debate ---

[The Minister of State, Department for Transport (Mrs Theresa Villiers)]

I congratulate my hon. Friend the Member for Rochester and Strood (Mark Reckless) on securing the debate, which has been excellent; there have been many very useful contributions. There is no doubt that the UK has a highly successful aviation sector, and I pay tribute to the energy and enterprise that we see from that industry, in the face of challenges as tough as the global slow-down and, of course, rising world oil prices. Developments over the past 20 years, such as the introduction of low-cost, no-frills airlines, have provided real passenger benefits and unprecedented choice and opportunity to fly.

In the year of the Olympics and the diamond jubilee, we are reminded once again of aviation’s critical role as the route to bringing in tourism. However, the very success of our aviation industry presents us with a key challenge: how do we accommodate growth and seize the benefits generated by aviation while meeting our environmental commitments and addressing the quality-of-life impact of aircraft noise?

It is very clear that London is one of the best-connected cities in the world, with its five busy and successful airports—six, if newly expanded Southend is included. Together, those five airports provide direct links to around 360 international destinations, including virtually all the world’s great commercial centres. That compares with just 309 such links from Paris, and 250 from Frankfurt. Heathrow provides more flights to New York than Paris and Frankfurt put together, and has more flights to the crucial BRIC—Brazil, Russia, India and China—economies than other European hubs, including more services to China.

Airlines are launching new routes to key emerging-market destinations. BA has recently announced a new service to Seoul. China Southern Airlines now flies from Heathrow to Guangzhou. Gatwick has a new Air China service to Beijing, and the aviation industry continues to invest and innovate. Birmingham airport will shortly begin constructing a runway extension better to enable it to serve long-haul destinations. The operators of Heathrow and Gatwick are investing £5 billion and £1 billion respectively over the next few years in better infrastructure. Of course, it is important to press for the further liberalisation of aviation, in terms of opening up the opportunity for UK airlines to provide flights to more destinations—something called for by my hon. Friend the Member for Rochester and Strood.

[Mark Reckless]

Why does it need to be UK airlines? Surely the benefit for the UK is to have airlines—Brazilian or Chinese as much as UK ones?

--- Later in debate ---

[Mrs Villiers]

Naturally, trade agreements on aviation between different countries provide mutual benefits. Liberalisation and expanding the range of airlines that can serve routes between the UK and other countries can provide real benefits economically and for passengers. We seek mutuality in these agreements, but we are also prepared to consider a more open approach for regional airports along the lines proposed by the hon. Member for Blackley and Broughton (Graham Stringer).

It is true that Heathrow is pretty much full, and Gatwick, too, is starting to fill up. However, it is simply not true to claim that London’s connectivity is falling off a cliff-edge. We are taking action right now to make our airports better, as well as preparing for the longer-term challenges of capacity in the south-east. We are reforming the way aviation security is delivered to make it more passenger-friendly and cost-efficient. We are trialling a set of operational freedoms at Heathrow, which we hope will make the airport more resilient and reliable. However, we will carefully have to assess their environmental impact. We are finally making progress on the single European sky, which has the potential to cut fuel-burn, improve punctuality, address noise and increase capacity.

[Zac Goldsmith]

Will the Minister give way?

[Mrs Villiers]

I am sorry, but I do not have time. If I have time at the end, I will give way.

We have an extensive programme of surface access improvements under way. Hon. Friends were right to raise that as being important for our aviation competitiveness. Manchester is getting a new Metrolink extension and will benefit from Northern Hub improvements. Gatwick station is getting a major upgrade; Thameslink will benefit Gatwick and Luton; Luton is getting improved access from the M1; and tunnelling has started on Crossrail. That project will ultimately see Heathrow connected to the City and Canary Wharf by train directly for the first time.

In the longer term, High Speed 2 will provide greatly improved surface access to Heathrow and Birmingham. As my hon. Friend the Member for Amber Valley (Nigel Mills) mentioned, that is a real game-changer, bringing Birmingham within easy travelling distance of many more people across the country. Of course, our HS2 plans will also provide an attractive rail alternative to thousands of short-haul flights coming into our south-east airports. That will potentially free up even more space for the long-haul destinations that hon. Members have rightly identified as crucial to our economic success.

However, good government is about not only tackling the problems of today, but preparing for the future. That is why the Chancellor announced in last year’s autumn statement that we would explore the options for maintaining the UK’s aviation hub status, with the exception of a third runway at Heathrow. The coalition is clear that it does not support a third runway at Heathrow. The airport is unique in Europe, in terms of the magnitude of its noise impact on densely populated areas. Thousands live daily with a plane overhead every 90 seconds, and have more planes that wake them up at 4.30 in the morning. The quality-of-life impact of a third runway and up to 220,000 more flights over London every year would be massive, and there is no technological solution in sight to ensure that planes become quiet enough quickly enough to make that burden in any way tolerable. We do not support mixed mode, which would see the end of the much-valued respite period that means so much to those who live with Heathrow noise daily.

We need a better solution. Last year, we kicked off the process of deciding what that will be, with the publication of our scoping document on aviation. The 600 or so responses we received are being used to prepare our draft aviation policy framework consultation, which will be published shortly. We plan to adopt the final framework in March next year, as set out in our business plan. It will set out the overarching economic and environmental framework within which we want to see aviation grow. We also intend to issue an open call for evidence on maintaining the UK’s international aviation connectivity. We will fully consider all representations to that consultation. The shadow Minister, the hon. Member for Poplar and Limehouse (Jim Fitzpatrick), wants us to go faster, but had no ideas whatever to share in today’s debate.

[Jim Fitzpatrick]

When will we see the documents, Minister?

[Mrs Villiers]

The consultation will be published shortly.

[Jim Fitzpatrick]

Does “shortly” mean before the summer recess?

[Mrs Villiers]

The consultation will be published shortly. The decision is a crucial one that requires objective, thorough and evidence-based analysis of our connectivity needs and how best to meet them in a sustainable way. We do not want to make the mistake that the previous Government made of coming up with the wrong solution and seeking to reverse-engineer the evidence. Put simply, that landed them in court and ensured that they failed to deliver any new capacity. We need to get this right. We need to base our decisions on the evidence, and on a process that allows the communities affected by any of the options fully to take part and ensure that their voice is heard.

[Zac Goldsmith]

Can my right hon. Friend tell us what work her Department has done on considering the viability of maintaining two hubs rather than one? We have today heard a lot of statements from Members, but no evidence at all, that we must have a single hub. Has her Department looked at that question, and are there any data she can share with us?

[Mrs Villiers]

Certainly the debate that will be triggered by our call for evidence will look at a range of options, including how a hub can interact with highly successful point-to-point airports, and will consider connections between our airports to see if they can provide a way to improve and enhance our connectivity. Those are the sorts of ideas we have already been looking at, because they were proposed in response to our scoping document, and they will provide an important basis for future debate over the next few months on how we maintain London’s and the UK’s top-class connectivity.

[John McDonnell (Hayes and Harlington) (Lab)]

Will the Minister give way?

--- Later in debate ---

[Mrs Villiers]

I am afraid that I am about to run out of time, so unfortunately not.

My hon. Friend the Member for Rochester and Strood raised a number of issues about the potential for a new airport—issues relating to cost, airspace management and impact on the local environment. It is, of course, vital to consider the sorts of questions he raises about costs and local environmental impact whatever options are put forward as a result of our call for evidence. Those are important questions to ask, and important criteria against which to judge any of the potential ways to address the future connectivity needs of the south-east airports. On air passenger duty, as hon. Members will be aware, taxation is a matter for the Chancellor.

To conclude, we are taking forward a range of measures right now to improve our airports and ensure that they are top-class international gateways to the rest of the world, and we are carrying out the process needed to determine our future connectivity needs. We believe our approach represents a responsible, structured and proper process that takes us towards delivering a sustainable solution that will maintain the UK’s connectivity and competitiveness in the future.

Rail (East Anglia)

Theresa Villiers Excerpts

Tuesday 3rd July 2012 Westminster Hall

[Lilian Greenwood]

Labour took action in government, and I am happy to say that transport spending in the eastern region increased in real terms during our time in power. In our last year in office, it stood at £1.494 billion, but I do not deny that a new approach is needed. That is why I will set out our proposals for a real devolution programme with transparent and fair regional funding. Unlike the Government’s proposals on devolution, ours include democratic accountability.

The prospectus makes a powerful case for investment in East Anglia’s rail network, but Government cuts have made it less likely that the funding will be found.

[The Minister of State, Department for Transport (Mrs Theresa Villiers)]

It is simply not true that the Government are slashing spending on our railways. We have embarked on the biggest programme of capacity expansion in the rail network since the Victorian era. The hon. Lady should get her facts right.

[Lilian Greenwood]

I am sorry that the Minister felt the need to spell that out, because she is wrong. She is cutting money from planned rail investment, and there will be an impact when hon. Members seek investment. I look forward to hearing what she has to say on the high-level output specification and what it means for not only East Anglia, but other parts of the country.

The hon. Member for Suffolk Coastal has said that she was reassured that

“it is not on the Government’s Agenda to reduce passenger rail services.”

She will surely hope, therefore, that the Government do not follow the model they adopted when they issued the west coast invitation to tender. The document allowed bidders to reduce daily stops at stations by up to 10%. Any reduction in service would be compounded by the McNulty report’s ticket office closures in the counties represented here today. Colchester Town in Essex, Thetford in Norfolk, and Whittlesford Parkway in Cambridgeshire, to give just a few examples, all face having their staff withdrawn. I am sure that the hon. Lady, having secured the debate, will also put pressure on her Government to ensure that existing services in East Anglia are protected. [Interruption.]

Passengers are already feeling the pinch. Services are overcrowded, and the Government have decided to increase fares by 3% above the retail prices index for the remainder of the Parliament. They have also given train operating companies the freedom to average out the rise, leading to fare rises of up to 11% next January. When personal and family budgets are under great pressure, with some commuters paying as much as £4,000 or £5,000 for their annual travel, the Government should be on the side of East Anglia’s commuters, not vested interests in the rail industry. [Interruption.]

--- Later in debate ---

[The Minister of State, Department for Transport (Mrs Theresa Villiers)]

I join other hon. Members in congratulating my hon. Friend the Member for Suffolk Coastal (Dr Coffey) on securing the debate and providing a timely and valuable opportunity to discuss the future of rail services in East Anglia. I take on board the points that many of my hon. Friends made about the unity behind the prospectus that was published yesterday. I am well aware that regional rivalries go back to before the time when Boudiccan hordes burned down Colchester, so it is no mean feat to unite Essex, Suffolk and Norfolk, and the whole of East Anglia.

We fully recognise the importance of good transport links in East Anglia; that is why the vital dualling of the A11 got the go-ahead. My hon. Friend the Member for South West Norfolk (Elizabeth Truss) and others were right to highlight the importance of housing growth and the provision of infrastructure to support it. My hon. Friend the Member for Mid Norfolk (George Freeman), with his characteristic insight, analysed the economic benefits of transport improvements and the potential for expanding life sciences in East Anglia. Like everyone else on the coalition side of the House, I acknowledge the importance of getting the cost of running the railways down, so that we can take the pressure off fares and respond to the kinds of points that have been made by several hon. Members, including my hon. Friend the Member for Witham (Priti Patel).

Punctuality and reliability, which are obviously crucial, were raised by my hon. Friends the Members for Suffolk Coastal, for Witham, for Central Suffolk and North Ipswich (Dr Poulter), and for Ipswich (Ben Gummer). The period of poor service that came about with the start of the franchise was very unfortunate. Abellio has apologised to its customers. I am hopeful that lessons have been learned. Performance has improved significantly since a problematic start. I welcome the collaborative work that is now under way between Abellio and Network Rail, with a view to improving infrastructure performance and ensuring that possessions are managed more efficiently.

The resilience and reliability of the infrastructure remains a concern. I have no doubt that the rail regulator will continue to scrutinise Network Rail’s record and press for improvement. Network Rail is, however, working hard to address the problems, with a major renewal of the overhead line equipment, which has been one of the greatest sources of vulnerability over recent years. The Government are also taking action to crack down on cable theft, which Network Rail highlighted for me as a key problem for the reliability of the network.

Improvements are on the way. Parts of the east of England will benefit from Thameslink. Others, in Essex, will benefit from Crossrail, as we have heard. The work on Beccles loop is happening, thanks partly to support from Suffolk county council. I recognise the aspirations for progress on the western section of East West Rail, and the possibility of a future link between Cambridge and Oxford. Of course, progress is being made on the central section, which we hope will provide momentum for further progress. I agree with my hon. Friend the Member for Central Suffolk and North Ipswich on the crucial importance of upgrading freight connections, particularly between Felixstowe and Nuneaton, to ensure that we relieve pressure on the roads by providing an attractive freight alternative on the rails. The Government are committed to continuing to invest in improving our railway’s capacity to take freight.

The extent to which we can fulfil all the aspirations that have been talked about today, and to which we can achieve goals of the kind set out in the prospectus, will depend on the funds available, and, of course, a careful assessment of competing priorities around the country. I got the message loudly and clearly—

[Mr Peter Bone (in the Chair)]

Order. On the point about loudly and clearly, it would help if the Minister faced forward, so that the microphone could pick up what she is saying.

[Mrs Villiers]

Thank you for that steer, Mr Bone.

Later this month, we will publish our high-level output specification, to cover what we want the rail industry to deliver in the 2014-to-2019 period. Some of the larger headline schemes are likely to be directly mentioned in the statement, but most of the projects needed to deliver the general outputs that we will set in that statement will not be explicitly listed, so the July statement will not have all the answers on exactly how the benefits of rail improvements will be shared around the country. It will be followed by an industry process to decide which upgrades are needed to deliver the specified outputs, overseen by the Office of Rail Regulation. I assure hon. Members that careful consideration will be given to the points made about the Ely North junction and other improvements today. I should mention that this HLOS statement, like the last one, is likely to contain certain general funding pots that are to be made available over the five-year period, which could be used to support various different schemes around the country, including in East Anglia.

The forthcoming long franchise for Greater Anglia will be important in answering the questions we have heard today. We are granting a longer, more flexible franchise, because we believe that that will give the train operator a stronger incentive to invest in the improvements passengers want, including better trains and stations. We expect the next Greater Anglia franchise to start in the summer of 2014, and to last for up to 15 years. Our reforms to franchising put passenger satisfaction and service quality at the heart of the outputs that we require train operators to deliver. We will work closely with bidders and Network Rail to see how we can maximise the opportunity to integrate decision making more effectively between track and train management—that is another aspiration in the prospectus—and we will also require the next franchisee to introduce ITSO smart ticketing across the franchise.

[Ben Gummer]

Will the Minister reflect on a comment made by my hon. Friend the Member for South Suffolk (Mr Yeo)—that in essence rail travel has not really changed for the past 50 years? The long franchise gives a tenderer a fantastic opportunity to have a rethink about passengers and how the railway experience works, and to do some innovative things. That can be managed only in the 15-year context that the Government are setting.

[Mrs Villiers]

I agree that a long franchise can give many more opportunities for a train operator to innovate, and for us to draw private sector investment into the railways.

We will launch a public consultation on the next Greater Anglia franchise later this year. A detailed business case will be developed, and, drawing on the results of the consultation, we are likely to appraise a range of improvement options. As to what goes into the franchise, I emphasise that we have no plans to remove daytime passenger services from the Felixstowe branch line, which was a matter of importance to my hon. Friend the Member for Suffolk Coastal. Although Hutchison Ports has proposed the change, it has an obligation under section 106 of the Town and Country Planning Act 1990 to fund the required infrastructure upgrades.

We have heard many other aspirations: there are the half-hourly services called for by my hon. Friend the Member for South West Norfolk, and the specific service changes called for by my hon. Friend the Member for Colchester (Sir Bob Russell). Decisions on those will be made only after the consultation has taken place, but I shall ensure that this debate is fed into the process.

[Lilian Greenwood]

Will the Minister give way?

[Mrs Villiers]

I am afraid I do not have time; I have only a couple of minutes left.

As for aspirations such as “Norwich in 90”—a campaign for that has been led by my hon. Friend the Member for Norwich North (Miss Smith)—it is too early to say what the franchise will specify for the train service between London and Norwich. However, in making such decisions we will need to take into account the interests of all the communities on the line, and those who live in intermediate destinations such as Chelmsford and Colchester. Whatever train service we adopt, we shall encourage bidders to put together affordable proposals for improved journey times and a better customer experience.

We did some work on options for Norwich to London before letting the short franchise, and that suggested that spending about £10 million to £15 million on new locomotives and refurbishing existing passenger vehicles would make it possible to save about seven minutes on most trains, and that could be funded in a 15-year franchise from additional revenue. However, that is just one option. We hope that franchise bidders will devise alternative plans that either cost less or produce greater benefits for passengers.

One factor, of course, that bidders will have to take into account is the requirement to make modifications to rolling stock by 2020, to provide proper access for people with reduced mobility. In response to all hon. Members who talked about the state of the rolling stock—some of it is fairly elderly—let me say that there will be changes over the next few years because of the deadline. The decision on whether that will involve targeted improvements, full refurbishment, new rolling stock or a combination of all three lies in the future, but change will have to be made. In the meantime, Abellio is pressing ahead with a deep clean of rolling stock.

In conclusion—

[Mr Peter Bone (in the Chair)]

Order.

Oral Answers to Questions

Theresa Villiers Excerpts

Thursday 28th June 2012 Commons Chamber

[Tom Brake (Carshalton and Wallington) (LD)]

12. What steps her Department has taken to publicise the consultation on the combined Thameslink, Southern and Great Northern franchise.

[The Minister of State, Department for Transport (Mrs Theresa Villiers)]

The Thameslink consultation was published on 24 May 2012 on the Department’s website. On the same day, I wrote to the relevant MPs and a press notice was issued. On 13 June, Department for Transport officials wrote to MPs and local councils, further publicising the consultation document and details of the upcoming consultation events.

[Tom Brake]

I thank the Minister for her response. May I encourage her, the bidders, Network Rail, London TravelWatch and Passenger Focus to redouble their efforts to raise awareness of the franchise renewal process and, in particular, the implications for Sutton residents, who may find that the through-trains from which they have benefited for many years stop short of Blackfriars, cutting their access to north London and Crossrail?

[Mrs Villiers]

My right hon. Friend will appreciate that extensive advertising budgets are a thing of the past in the age of austerity, but we will do our very best to make sure that people are aware of the consultation. We are aware of his concerns about the Wimbledon loop; my hon. Friend the Member for Wimbledon (Stephen Hammond) barely gives me a moment’s rest on the issue. Network Rail has concerns about operational issues at Blackfriars, but those are not impossible to surmount. No final decisions have been made. We will consider all the representations on the Wimbledon loop and on all relevant matters in response to the consultation.

[Heidi Alexander (Lewisham East) (Lab)]

Page 28 of the Minister’s consultation document states that future Thameslink services may serve Sevenoaks as well as Dartford and Orpington. Will the rail Minister confirm that, if those services go ahead, they will include a stop at Lewisham, and will be in addition to, and not a replacement for, existing services that run from that station?

[Mrs Villiers]

As I have said, no final decisions have been made on what goes into the ultimate franchise; that is what the consultation is all about. I will make sure that the hon. Lady’s representations are properly considered when the consultation closes.

[Joseph Johnson (Orpington) (Con)]

Now that the consultation on rail decentralisation is drawing to a close, will the Minister or the Secretary of State devolve responsibility for south-eastern suburban rail services to city hall as a matter of urgency, so that it can drive up standards on the south-eastern suburban networks in exactly the same way as it did with London Overground?

[Mrs Villiers]

This is an important issue. We are interested in ways of devolving more decision making about our railways, so that it is closer to the local communities served, but we have to make sure that we take into account the interests of all users of relevant rail services, whether they are within or outside the London boundary. We will make an announcement in due course on the results of our consultation on the decentralisation of rail decisions.

[Mr Philip Hollobone (Kettering) (Con)]

13. What consideration she is giving to the reintroduction of double-decker trains on the rail network.

[The Minister of State, Department for Transport (Mrs Theresa Villiers)]

A report prepared by Network Rail in 2007 concluded that the introduction of double-decker trains on the current UK rail network would require extensive modification to structures and stations and was not economically viable.

Although such trains operate in a number of European countries, the larger loading gauge used in continental Europe allows the use of taller, wider trains than is possible in the UK.

[Mr Hollobone]

Other nations seem to make a success of having double-decker trains, and we used to have them on some suburban services in this country. I urge my right hon. Friend the Minister to ask Network Rail to think again, because lots of commuters on congested trains would want us to replicate the success of double-decker buses by having double-decker trains.

[Mrs Villiers]

I welcome my hon. Friend’s interest in this issue, and I have looked at it. The reality, however, is that double-decker trains that were run in the past by British Rail were claustrophobic, it took a long time for passengers to get on and off, and they deployed the sort of slam-door stock that we have tried to phase out. The shape of the UK rail network, the size of the bridges, the distance between rail tracks and the distance between the tracks and the platform mean that we cannot run the large double-decker trains that work in Europe. I am afraid that there are much more cost-effective ways to expand capacity, with longer trains and more frequent services, which is what the Government are doing.

[Mr Peter Bone (Wellingborough) (Con)]

14. What her policy is on the issuing of renewal notices for driving licences.

--- Later in debate ---

[Andrew Gwynne (Denton and Reddish) (Lab)]

T9. Following last week’s publication of the east coast franchise, does the Minister think passengers on the east coast should expect an eye-watering 8% above inflation fare increase, which my constituents travelling on the west coast main line will face in years ahead?

[The Minister of State, Department for Transport (Mrs Theresa Villiers)]

This Government are determined to get the cost of running the railways down. That is the way we deal with the concerns that passengers have about fares. If the Opposition think concerns about fares started in May 2010, they are living on another planet. We need reform to get the costs down so that we can respond to passengers, and it is time Labour started producing its own reform plans if it insists on rejecting ours.

[Andrea Leadsom (South Northamptonshire) (Con)]

T4. My right hon. Friend is aware that I have had constituents in tears in my advice surgeries who are blighted by the HS2 project and trapped in their homes, unable to sell them. Can she reassure my constituents that she is determined to make sure that no private home owner has to pay with the value of their home for the project? What update can she give us on the consultation to get a decent, fair compensation scheme in place?

--- Later in debate ---

[Tom Brake (Carshalton and Wallington) (LD)]

T7. Helicopter flights cause significant noise disturbance for people living under flight paths and they also benefit from reduced fuel taxes. Will the Minister look at schemes such as those adopted in Paris and Los Angeles to tackle helicopter noise and also look at the unfair tax advantage that helicopter operators have?

[Mrs Villiers]

My right hon. Friend will appreciate that fuel duty is a matter for the Chancellor. We do appreciate the irritation that helicopter noise can cause—anyone who works in this building gets irritated by them buzzing overhead so often—and will consider it as part of our consultation on a sustainable framework for UK aviation.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

Like many Members, I eagerly await publication of the high-level output specification and the statement of funds next month. As matters stand, Wales would see electrification only of our rail network to Cardiff, compared with electrification of 40% of UK railways and the electrification of the Glasgow to London route in 1974. I invite the Department to make up for this historical injustice by including electrification of the valleys network, the north Wales coast line and the main line to Swansea?

Lineside Vegetation (Network Rail Policy)

Theresa Villiers Excerpts

Wednesday 27th June 2012 Westminster Hall

[The Minister of State, Department for Transport (Mrs Theresa Villiers)]

It is unusual for a half-hour Westminster Hall debate to get trailed on the “Today” programme, but the media interest does not surprise me because this is an issue of real importance for our railways and our environment. Therefore I congratulate the hon. Member for Islington North (Jeremy Corbyn) on securing this debate. He asked me to pay tribute to the residents and the organisations, such as the Royal Society for the Protection of Birds, that have fought campaigns on this issue. I am happy to do so. It is very important that we get this issue right.

I must start by acknowledging that Network Rail, as a private sector company, is not owned by the Government and therefore Ministers have no power to instruct or direct it. Consequently, although I am happy to respond to the points that have been made in this debate, I should emphasise that tree and vegetation management policy is an operational matter for Network Rail, over which we—as Ministers—do not have any power. Nevertheless, I fully appreciate how important this issue is and the concern that communities feel about Network Rail’s treatment of lineside vegetation.

I have raised this issue on a number of occasions with Network Rail, including with those at the very top of the company; I have raised it with Network Rail’s chief executive, Sir David Higgins, and its director of operations, Robin Gisby. I have raised the specific case of Grange Park; I fully acknowledge the concerns of my hon. Friend the Member for Enfield, Southgate (Mr Burrowes) in that regard. The pictures on the internet of Grange Park are more like the pictures that one would associate with rain forests being devastated by illegal logging than pictures of a leafy suburb. I therefore fully understand the concerns of local residents. In response to the points made by all hon. Members in Westminster Hall today, I am happy to raise this matter again with Network Rail and I will keep up the pressure in relation to it, as I do on a regular basis. I should also point out that some of my constituents have had similar concerns about lineside tree clearance by London Underground. That is a different organisation, but the concerns of the people affected are similar to those of the people affected by Network Rail.

To be honest, I always face a dilemma in this regard, since I care very much about both the provision of safe, reliable and affordable railways, and trees and the conservation of the natural environment. Of course, that is a dilemma that Network Rail faces on a daily basis. I fully agree with everything that has been said today about how important it is that Network Rail exercises care and good judgment when balancing those competing concerns. Efficiency and cost are a consideration, but environmental concerns also have to be taken seriously too. It is also very important that Network Rail engages effectively with the communities and local authorities that are affected by vegetation management, and of course it is essential that it complies with the relevant regulations relating to conservation and wildlife habitats.

Regarding the specific points that were made about the works adjacent to lines in north Islington, near the Arsenal stadium and the Gillespie park nature reserve, I am concerned to hear that the hon. Member for Islington North felt that Network Rail’s actions were so disproportionate and destructive in that area. Department for Transport officials have raised this case with Network Rail. As we have heard, in response to the concerns expressed by residents, Network Rail’s route director, Mr Phil Verster, suspended vegetation clearance in the area. I gather that he has asked a senior member of his team to contact Islington council to discuss what has happened and what went wrong. The aim is to agree a mutually acceptable method for sharing Network Rail’s work plans in the future.

As regards work during the bird nesting season, I can confirm that the company is bound by the provisions of the Wildlife and Countryside Act 1981, as amended. Network Rail must ensure that it does not contravene the legislation put in place to protect birds while they are nesting. It should be noted that the legislation allows work to be undertaken where needed for safety reasons.

Turning to the more general issues raised today, Network Rail is tasked with managing over 30,000 hectares of lineside vegetation along 20,000 miles of track. That makes the railway a major natural resource, which needs to be managed at all times of the year to keep it safe. Trees growing within the railway corridor between the railway boundary fences are the responsibility of Network Rail. I am afraid that there is no escaping the fact that trees next to the railway, especially if they are relatively tall, can be a potential risk to train operations and public safety. If they fall over the track or into the overhead wires and cables on electrified railway lines, it can lead to severe train disruption, with major delays and service cancellations. There is also the risk that falling trees could cause accidents.

Factors, such as the steepness of cutting slopes, soil conditions and the nature of the vegetation, can all be relevant to the degree of risk at particular locations. In certain circumstances, trees and bushes need to be cut back in certain areas, because low branches and foliage can impair train drivers’ views of signals. For safety reasons, track workers need to be able to see and be seen by trains, to be able to move to a safe place when a train approaches.

Reliability issues are not confined to instances of falling trees, of course. Delays caused by leaves on the line lead to understandable annoyance and frustration for the commuters and passengers affected, not to mention the economic damage of transport delays. Leaf fall can have a significant effect on train performance and is a significant cause of delay in the autumn, generating public pressure for preventive action. The rail regulator highlighted the contribution of vegetation management to the industry’s successful management of train delays last autumn.

In developing its vegetation management policy, Network Rail tells me that it has worked with organisations such as the RSPB, English Nature and Scottish Natural Heritage. Its priority is to operate a safe and reliable railway, and tree clearance must be a part of that. It has a duty to provide, as far as is reasonably practical, a railway free from danger and obstruction from falling trees.

Recognising public concern on the issue, I have emphasised to Network Rail how important it is that it strikes the right balance between providing a safe, reliable and affordable network and addressing local community and environmental concerns. Although the majority of work is carried out responsibly, the company acknowledged again today that in some instances it has fallen short of the standards it sets itself. It accepts that there are lessons to be learned.

In particular, the Government urge Network Rail to engage proactively and effectively with local residents, local authorities and MPs in advance of carrying out works. It has recently revised its consultation process—no doubt seeking to learn lessons from the experiences that hon. Members mentioned—to enable key stakeholders to be informed of intended maintenance operations in good time.

[Jeremy Corbyn]

I am pleased with the Minister’s response and I am grateful that she will raise our issues with Network Rail. We had exactly those undertakings from it less than a year ago in Islington, and we assumed that it was acting in good faith and would mend its ways in future, because it did similar things on the North London line. Will she tell it in clear terms to please be straight with communities and tell them what is going on? That way, they will understand what is happening, without the kind of double dealing that we had before.

[Mrs Villiers]

The hon. Gentleman makes an important point. It has been raised with Network Rail on various occasions over a period of years. I was trying to remember the first time that I raised it—it was certainly over a year ago. It is important that Network Rail focuses and that we see real change.

There is progress. Network Rail has advised that the number of complaints about vegetation management has fallen. The hon. Gentleman thought that it did not collect that information; I think that it does, but I will check. I was given to understand that it did. Requests to cut back overgrown trees and vegetation now exceed complaints about vegetation management.

However, there are undoubtedly remaining instances in which Network Rail has failed to provide anything like comprehensive advance notice of the nature and timing of its intended work programmes. Network Rail acknowledges the shortcomings that have occurred. For example, it accepts the point made by the hon. Member for Brighton, Pavilion (Caroline Lucas) that when it does communicate with residents, it sometimes fails to convey the scale of the works that will be undertaken. It is reviewing its communications strategy and working with the Tree Council to improve its lineside vegetation management, and with a view to developing more sustainable solutions to the challenges that it faces in reconciling environmental concerns with keeping the railways running safely. Network Rail has acknowledged that it needs to do better, and I will be urging it to do so.

As the hon. Gentleman highlighted, there are important ecological issues to be considered. Network Rail needs to take care to avoid unnecessary tree felling. I recognise fully the concern that people feel when they see trees being cut down next to railway tracks. Network Rail’s first duty is to ensure the safe running of the railway, but it must also have regard to the environmental, social and quality-of-life importance of the conservation of trees and wildlife corridors. This debate will provide a timely reminder of the importance of engaging with MPs, local communities affected by vegetation management and local authorities. I will ensure that all the points made in this debate are conveyed to Network Rail at the earliest possible opportunity. I have enjoyed the chance to debate an important issue with hon. Members.

Question put and agreed to.

Rail-Air Connectivity (South-East)

Theresa Villiers Excerpts

Tuesday 26th June 2012 Westminster Hall

[The Minister of State, Department for Transport (Mrs Theresa Villiers)]

I congratulate my hon. Friend the Member for Crawley (Henry Smith) on securing a debate on such an important and interesting topic. He is a great advocate for his constituents, and I welcome his expertise in and understanding of aviation issues, which I am sure are of great importance to many of his constituents who work at Gatwick airport.

I fully appreciate all the points that my hon. Friend made about the importance of high-quality rail services to airports, and particularly to Gatwick, which is one of our biggest and most successful airports. I echo his praise of and congratulations to Gatwick on its investment programme, and I welcome the new services that it is attracting, including Air China’s new service from Gatwick to Beijing. Gatwick well deserved the praise that it received from the Prime Minister, to which my hon. Friend referred.

It is entirely correct to say that the debate about aviation connectivity in this country is not just about Heathrow. Heathrow is an extremely important airport, but we should not forget that London’s five successful airports together make us one of the best connected countries in the world, and Gatwick plays a very important role in that system.

High-quality surface access to our key airports is important for air passengers and for our international economic competitiveness, as my hon. Friend rightly highlighted. In addition, improving rail services to airports can provide important assistance in addressing local road congestion problems and, in certain places, in dealing with air quality problems. As he said, one of the Government’s strategic priorities for the nation’s rail network is improving rail links to major ports and airports.

A significant programme of rail infrastructure improvements is under way, and a number of the projects will benefit airports. If time permits, I shall deal with those later, but first it would be best for me to address some my hon. Friend’s points that were specific to Gatwick.

We have recently started consulting on the new combined Southern, Thameslink and Great Northern franchise. All the responses to that consultation will be shared with the five shortlisted bidders that will compete to become the next operator. The consultation is an important part of the decision-making process on what goes into the new franchise. This debate is therefore very timely, and I encourage my hon. Friend and his constituents to take part in the consultation.

The task that the bidders for the new franchise face in balancing the competing priorities of those who use the Brighton main line, which serves Gatwick, will not be easy—there is no getting away from that fact. Along with much of the nation’s rail network, the line is a tribute to the engineering excellence of our Victorian forebears. Driving tunnels through the downs and building a nine-track viaduct over the River Thames are the sort of engineering projects that we take for granted today, but they were a massive challenge when they were built more than 150 years ago, largely using only manual labour and sheer hard graft.

Brilliant as those Victorian engineers were, however, they bequeathed us a railway that had only 19 platforms at Victoria, and only five tracks south of East Croydon. Since Victorian times, commuting demand has increased dramatically. In a typical weekday morning, the Gatwick Express carries more than 2,000 passengers from Gatwick airport into London, but there are more than 35,000 Brighton mainline commuters, and approximately the same number again commuting into London on Southern’s services from the inner suburbs. Expanding our inherited railway network is neither low-cost nor easy, especially where it runs through our crowded cities, so we will expect the bidders to think hard about how they can make best use of the track capacity available to them in such a way that they can continue to provide a high-quality service to those travelling to and from Gatwick, without compromising their ability to meet the needs of the thousands of commuters who also use the line every year.

Against that background, there is certainly some pressure for more trains to call at Clapham Junction, which is one of the busiest stations on the route and arguably one of the busiest in the world. My hon. Friend will appreciate, however, that although that proposal was included by Network Rail in its south-east route utilisation strategy, that is not binding on the Government. No final decision has been made on it. When we make our decisions on the new franchise, we shall carefully weigh the needs of airport passengers and commuters, as well as taking into account wider strategic economic considerations of the sort to which my hon. Friend referred. This debate is useful for feeding into that decision-making process.

My hon. Friend has concerns about rolling stock. The Government are keen for such decisions to be made, when possible, by the people who run the railways rather than Whitehall. However, I agree that when making choices about rolling stock and its internal layout, the current and future franchisees will need to balance carefully the different needs and wants of railway users.

My hon. Friend the Member for Crawley also referred to decisions about on-train ticketing and the installation of ticket gates at Gatwick. I am aware of the concerns of the airport operator and I have held discussions with Gatwick on several occasions. However, the installation of gates is one of most effective ways to ensure that passengers pay the fares that are due. Protecting that revenue is an important element of delivering a more financially sustainable railway. I note that efforts were made to try to respond to the airport’s concerns, with a choice of wider gates to facilitate passengers with larger bags. I hope that that provides some mitigation to the concerns that my hon. Friend and the airport operator expressed.

I want to discuss the wider programme of activity that is under way to improve rail-to-air links in the south-east and elsewhere. A fleet of brand new trains built by Bombardier in Derby is now in use on the Stansted Express to improve the experience for passengers going to that airport. Network Rail, with the assistance and support of Gatwick Airport Ltd, is investing £53 million in upgrading the station, tracks and signalling at the airport, which includes new platforms and escalators, and a refurbished concourse. That will greatly improve the attractiveness of rail services to and from Gatwick, and I was delighted when the airport and Network Rail put together the funding to make it possible.

Through the regional growth fund, we have awarded £19.5 million to Luton borough council for junction enhancements that will improve access from the M1 to Luton. The RGF has also awarded £40 million to Kent county council for its Expansion East Kent programme, which includes rail improvements affecting journey times between Ashford and Ramsgate that could support the further development of Manston airport as a passenger airport. In the north of England, Manchester airport is getting linked up to Metrolink for the first time, and funding has been secured for a new airport link road connecting the M56 and the A6. Looking ahead, Manchester airport is also set to benefit from our programme of rail electrification in the north of England and from the work on elements of the northern hub that we are committed to delivering.

As my hon. Friend the Member for Crawley rightly pointed out, the Thameslink programme, which took some years to get started under the previous Government—they started out calling it Thameslink 2000, but for some reason dropped that title as delivery got later and later—is very much under way. It is a £6 billion programme that will benefit Gatwick and Luton airports through the operation of a brand new fleet of high-capacity trains running at greatly increased frequency. The trains serving the two airports will be able to stop at London Bridge at peak times, which is not possible at the moment. The Thameslink programme also means that, for the first time, Gatwick will get new direct services to destinations north of London, such as Cambridge, Stevenage and Welwyn.

Crossrail is finally under way, with tunnelling under London commencing at the beginning of May. Once it is completed, we expect Crossrail to provide new services linking Heathrow directly with the west end, the City of London and Canary Wharf. In the longer term, Heathrow will also benefit from the Piccadilly line upgrade, and High Speed 2 will connect to Birmingham airport and provide radically improved access to Heathrow from destinations in the midlands and the north of England. A great deal of work is under way to improve our links between rail and air in the south-east and elsewhere in the country. We shall be giving further thought to whether more can be done as part of our HLOS—high-level output specification—programme for the 2014-to-2019 railway control period.

Let me respond to the hon. Friend’s comments in the context of the overall debate about aviation. The coalition has been clear that it wants a successful and sustainable aviation sector that supports economic growth and addresses aviation’s environmental impacts. Our forthcoming consultation on a sustainable framework for UK aviation will be a further opportunity to consider surface access to airports and the kind of issues that my hon. Friend shared with the Chamber. For example, in response to the scoping document on aviation with which we began the policy development process last year, a number of people advocated the potential of new fast rail links between Heathrow and Gatwick as a way to deal with connectivity. Such ideas will be considered alongside the many other responses that I am sure we will receive in our consultation, in which I hope that hon. Members will participate.

The Government will continue to work with airport operators, the rail industry, local authorities, local enterprise partnerships and MPs on ideas to improve rail access to our key airports in the years to come. All the matters mentioned by my hon. Friend will be carefully taken into account when decisions are made on new franchises for the railways—we are about to embark on the biggest programme of refranchising since privatisation—and we will ensure that we consider the importance of good surface access to our key airports.

[Zac Goldsmith]

Will the Minister reconfirm that it is her view, and that of the Government, that the Government’s first priority is to find ways of making better use of existing capacity? Will she confirm that any thoughts of expansion in the south-east take a very clear second place, and that people will not be subjected to the horror of expansion unless it is an absolute last resort?

[Mrs Villiers]

I agree that whatever decisions are taken about long-term capacity needs in the south-east, it is essential that we do everything that we can right now to make our airports better and to ensure that we make the best use of existing capacity. Two separate things need to be done: to work out how we improve our airports today—we have initiatives on that important aspect under way, such as the operational freedoms trial at Heathrow and reforming how security is delivered—and, at the same time, to give serious, evidence-based consideration to what our future capacity needs might be.

On rail-to-air connectivity, we must be mindful of affordability constraints and value for money. When appropriate, we continue to look to the airports that will benefit from transport improvements to make a fair contribution to their funding. When there are decisions on how limited capacity is allocated between competing priorities, we will need to consider carefully the needs of all railway users—those who are travelling to the airport and those who are not, including commuters and freight operators. We need a successful and sustainable aviation sector that is supported by a railway that delivers reliable, high-quality services for all its users. That is what the Government are striving to achieve, and I am sure that our discussion today will provide useful input into forthcoming decisions on aviation and rail matters.

Walsall-Rugeley Line (Electrification)

Theresa Villiers Excerpts

Thursday 14th June 2012 Commons Chamber

[The Minister of State, Department for Transport (Mrs Theresa Villiers)]

I congratulate my hon. Friend the Member for Cannock Chase (Mr Burley) on securing this debate on such an important issue. It is very timely because decisions on the Government’s high-level output specification are imminent. I have been impressed by the determination of the coalition of different organisations campaigning for full electrification of the Chase line, and I pay tribute to the work of my hon. Friend, who has this evening put the case for that improvement to the House with passion, clarity and detail. I also note the support of my hon. Friend the Member for Lichfield (Michael Fabricant), who is in his place, and the work done by many others, such as the Cannock Chase rail promotion group. Like my hon. Friend the Member for Cannock Chase, I think it is right to single out for praise John Morgan of Cannock Chase district council. As we have heard from my hon. Friend, Mr Morgan’s knowledge of the Chase line is unsurpassed. I am told that he has shown huge dedication over many years in seeking the upgrade he wants to see.

Subject to affordability, the Government support the progressive electrification of the rail network as a way of reducing the cost of running the railways, improving services for passengers and reducing carbon emissions from transport. Electric trains are more reliable, quieter and more comfortable than their diesel equivalents. They are also better for the environment and cheaper to operate. The Government believe it is essential that the cost of running the railways should come down. In March we published plans for achieving major efficiency savings in our Command Paper. We believe that further electrification can assist us in delivering our goal of a more efficient rail network. That is one reason why we are going ahead with significant electrification programmes in the north-west and on the Great Western line.

We accept that there is a positive business case for proposals to extend electrification on the Chase line. I also note the strong local support and the long-running nature of the campaign, as well as the regional support that has been outlined by my hon. Friend the Member for Cannock Chase. I agree with him that considerable benefits could be delivered if it were possible to fund electrification of the line. That would allow more energy-efficient electric services to operate and would remove the existing inefficient and resource-intensive mix of diesel and electric services between Walsall and Birmingham. That could reduce the cost of running the service, which is always an important factor. An added advantage would be the release of the diesel rolling stock used between Birmingham and Rugeley Trent Valley for use elsewhere on the network. Electrifying the Chase line could also provide wider economic benefits, as my hon. Friend rightly identified—for example, by broadening access to labour and goods markets, and by boosting productivity and job creation in the area.

A key factor in considering the case for the further electrification that my hon. Friend wants is the fact that the Chase line is an entry point for trains to the nation’s second city. In recent years the line has become an increasingly important commuter service in and out of Birmingham. The electrification between Walsall and Rugeley could therefore be a way to strengthen peak capacity into Birmingham. Currently, as we have heard, the only electrified route from the west coast main line to Birmingham from the north is the Wolverhampton line. Electrification of the Chase line could offer a second electric route via Walsall from those destinations in the north.

That provides an opportunity for the development of services through Birmingham, Walsall, Stoke-on-Trent, Crewe, Liverpool and elsewhere in the north. It would deliver an electric diversionary route from the west midlands to the north for passenger services from Birmingham New Street and for freight services, relieving the line through Wolverhampton. As well as improving local and regional services, electrification could have a strategic national value.

The benefits of electrification could be considerable and I am clear that this project is a serious contender for funding. The Government are considering how much funding will be available for rail investment in the five-year CP5 period up to 2019 and how it should be allocated between competing priorities. We will announce our decisions on the HLOS 2—high-level output specification 2—statement by the end of July. The case for electrification of the Chase line will be considered as part of that process. I shall ensure that the deliberations and points made in this debate are fed into that process.

The project has been chosen by Centro and the west midlands regional rail forum as their No. 1 electrification priority for the west midlands, and it is supported by the business community and the local enterprise partnership. That local support is something that we shall take into account in our forthcoming decisions on what can go into the next HLOS. As we have heard, reference is made to the project in Network Rail’s initial industry plan, which sets out the options for funding in CP5. I note my hon. Friend’s concerns about the approach to the scheme by Network Rail in the industry plan but, like him, I am pleased that additional work has been undertaken since the plan’s publication further to develop the business case and respond to comments from stakeholders in the west midlands and achieve a clearer understanding of the underlying evidence and facts on what electrification would mean and what it would cost.

[Mr Winnick]

The Minister mentioned stakeholders. I am sure she will bear in mind the point that I made earlier that this has the support of all the Members of Parliament, and there is absolutely no political controversy whatsoever.

--- Later in debate ---

[Mrs Villiers]

I welcome the hon. Gentleman’s restatement and, yes, I am very much aware of that.

We recognise that there is a business case for a number of the schemes identified in the industry plan that are supported by Centro, including greater peak capacity into Birmingham and extra capacity between Birmingham and Tamworth and in the Worcester area. Whether we can give the go-ahead to Chase line electrification and Centro’s other aspirations depends on what is affordable within available budgets. We also have to weigh up competing priorities elsewhere on the rail network. Decisions on HLOS 2 have not yet been taken, but this debate will provide very useful input into the Government’s thinking on this important matter. It is worth remembering that Chase line passengers are in line to receive improved services with a £5.4 million package of improvements announced by Network Rail in 2011 to increase line speed on the Chase line from 45 mph to 75 mph, reducing journey times for passengers travelling from all stations on the line.

We fully understand that the aspiration is to go further, and we recognise the strength of support for electrification, which is something that we will consider with great seriousness in the weeks between this debate and the announcement that we shall make in the summer on which projects can receive funding in the CP5 control period between 2014 and 2019.

Question put and agreed to.