Informal EU Transport Council

Theresa Villiers Excerpts

Thursday 15th September 2011 Written Statements

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

The Polish presidency of the EU held an informal meeting of EU Transport Ministers in Gdansk and Sopot on 5 and 6 September. The UK was represented by officials. The theme was: “Mobilizing private financing for transport infrastructure”. The debate was based on a number of questions put by the presidency, which were principally about the use of public-private partnerships.

The key points conveyed by the UK are as follows:

For the UK, the primary factor determining PPP use is whether it offers the best value for money compared to alternative delivery options. The features that impact on the value for money decision include: public sector access to private sector capital and expertise and the transfer of financial risk from the public to the private sector.

A key feature of the UK public sector comparator process is that it is not entirely based on a quantitative calculation of the respective delivery outcomes. The calculation is supported by a qualitative assessment of the respective delivery routes in terms of their viability, desirability and achievability.

The UK set out several examples of the use of PPP in the transport sector, which included contracts for street lighting, highway maintenance and London Underground. We reported that the experience of PPP in this sector has been mixed. While PPP programmes have helped secure significant infrastructure investment and, in a number of cases, achieved an improved record on the delivery of projects to time and budget, this has only been achieved by repeated interventions.

Work has recently been undertaken to achieve a stronger focus on flexibility. Project reviews are being undertaken to improve the delivery of cost reductions and value for money. New PPP projects are subject to tougher approval and assurance processes. The UK no longer uses the PPP format to source projects for which there is an insufficient capital requirement or continuing lifecycle maintenance/service obligation, or for lower value projects.

The UK emphasised that while PPP remains a useful procurement option, it is not suitable for every project and should only be selected when it can demonstrate that it provides a better value for money outcome than conventional procurement processes.

The UK noted that a fundamental feature of PPP structures is that they provide for availability payments over the life of a long-term service contract. However, EU regulations only provide for availability payments that are linked to development and construction pre-payments. If operational availability payments are not permitted, this could distort the decision-making process on the type of PPP structure that is adopted and unnecessarily constrain the options available to member states.

South East Airports Taskforce

Theresa Villiers Excerpts

Thursday 14th July 2011 Written Statements

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

On 15 June 2010, the Government announced the establishment of the South East Airports Taskforce with representatives from the aviation industry to explore the scope for measures to help make the most of existing airport infrastructure and improve conditions for all users. I chaired the taskforce. Its focus was on action at our three biggest airports—Heathrow, Gatwick and Stansted. Today I am announcing the publication of the taskforce’s final report.

The taskforce was given a challenging remit. It had 12 months to identify operational improvements that could enhance the performance of these airports and bring benefits to passengers. The report is the culmination of a year-long programme of work across seven areas, including punctuality, security and border controls. It sets out the issues considered by the taskforce and its conclusions.

I would draw particular attention to the chapter on improving punctuality, tackling delay and strengthening resilience. The focus of this chapter is on Heathrow, which is the UK’s biggest, busiest and most capacity constrained airport. The main recommendation is that the scope for establishing a set of operational freedoms at Heathrow should be explored. These would enable the greater use of tactical measures in defined and limited circumstances to prevent or mitigate disruption and to facilitate recovery. These measures are consistent with our commitment to runway alternation at the airport and there would be no increase in the number of flights at the airport which will remain capped at current levels.

Tactical measures, such as operating twin arrivals streams for limited periods to tackle inbound delays, are already used at Heathrow; implementation of these proposals would mean greater use of such measures on days when the airport faced particular disruption. The taskforce has concluded that such an approach would deliver benefits, particularly in improving reliability, but would also mean some limited redistribution of noise when measures were applied.

The work carried out so far indicates that the proposals could result in net environmental benefits,—for example, through reducing stacking and cutting the number of unscheduled flights during the night period. However, on the limited occasions where these freedoms would operate, some communities would be likely to experience aircraft noise during current respite periods; hence the need for safeguards to ensure they are deployed only to anticipate, prevent and mitigate disruption and to facilitate recovery.

Before any commitment is made to implementing such operational freedoms, better evidence is needed of the potential benefits and impacts. I am therefore announcing a phased trial of operational freedoms at Heathrow. The trial will provide firm evidence on the benefits and impacts of these measures and will provide a basis for consultation with local communities before a decision is taken on whether the proposed additional operational freedoms should be adopted on a permanent basis and what safeguards should apply in relation to their use.

The trial will be in two phases to enable evidence to be gathered for both winter and summer operations. Following engagement with local communities, the first phase will run from November 2011 to February 2012, followed by a four-month period of initial assessment and further engagement on how the regime might be refined to mitigate any impacts of particular concern and deliver additional benefits.

The second phase will run from July 2012 to September 2012, providing the added benefit of enabling greater resilience during the London Olympic and Paralympic games when the UK’s airports will be under more pressure than normal. The trial will be undertaken by BAA, the airport operator, under the supervision of the Civil Aviation Authority, the independent aviation regulator.

BAA will be required to engage fully and transparently with relevant local authorities, communities and other stakeholders throughout the process, particularly on the monitoring of noise impacts. Once assessed, the results of the trial will form the basis for a consultation with local communities which would in due course inform the Government in deciding whether an operational freedoms regime should be adopted at Heathrow.

I am grateful to the taskforce members not only for their constructive input into the taskforce over the past few months, but also for their continuing commitment to delivering real improvements for passengers. I intend to reconvene the taskforce in a year’s time to review the progress made.

Copies of the report document are available from the Department’s website at: www.dft.gov.uk.

High-speed Rail

Theresa Villiers Excerpts

Wednesday 13th July 2011 Westminster Hall

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

It is a pleasure to serve under your chairmanship, Mr Gray. I congratulate the hon. Member for Clwyd South (Susan Elan Jones)on securing a debate on this important issue, and I welcome the widespread support for the Government’s plans, expressed from both sides of the House by a clear majority of the hon. Members present. I hope that all colleagues who attended, including those who did not choose to stay to the end, will encourage all their constituents to take part in the consultation, which closes on 29 July, and make their support for the Government’s proposals clear.

In answer to the questions, there is no delay; the timetable that we are taking forward is the same as the one proposed by the previous Government. On the allegation of the shadow Minister, the hon. Member for Denton and Reddish (Andrew Gwynne), repeated yet again, that we are not serious about going to the north of England, we supported a link to the north of England before Labour did. We supported a national network while Labour’s 30-year strategy for the railways ruled out high-speed rail at all. They are the people who are late to the party on high-speed rail, so the hon. Gentleman is in no position to criticise us. Nor is he in any position to criticise our approach to international connections. Labour had no connection to Heathrow in its plans, and nor did it put forward proposals to connect HS2 to HS1. Both those facts show that Labour was not serious about international connections. In response to questions on this point, and the points made by my hon. Friend the Member for Lancaster and Fleetwood (Eric Ollerenshaw), I repeat my support for taking high-speed rail to the north of England.

Questions were asked about a hybrid Bill and yes, the first hybrid Bill will cover the first phase, but we hope to go on in due course to an informal consultation next year on phase 2 to the north of England, with a hybrid Bill in due course in the next Parliament. I emphasise that the Government entirely recognise the concerns of communities about the preferred route and the potential impact on their local environment. We are listening to all those concerns. We have already made changes to about half the route that we inherited from our predecessors. As has already been mentioned, while our preferred route passes through the sensitive Chilterns area, all but 1.2 miles of it is in either a tunnel or a cutting, or alongside a main transport corridor—the A413 being a particular example. I am convinced that the result of the extensive process of consultation on the hybrid Bill will not be nearly as negative for communities as they fear. I am confident that with careful mitigation we can address the most serious local impacts, as happened so successfully with HS1. Intense controversy surrounded that first stretch of high-speed rail for the UK. Because of the hard work that went into getting the right route and the right mitigation, HS1 has not had the disruptive impact that communities feared it would. We can do the same with the route for HS2.

On what my hon. Friend the Member for Gillingham and Rainham (Rehman Chishti) said about HS1 somehow pushing up fares on the conventional service, the fares decisions taken by the previous Government were related to capacity enhancements and improvements on the conventional existing line, and not to HS1. The hon. Members for Clwyd South and for Ynys Môn (Albert Owen) made points about Euston, and of course there is more work to be done in relation to Euston—and the rest of the route. That is why HS2 Ltd is working with Camden residents, and why it is entirely legitimate for Members of the House to make representations about the Government’s preferred route.

As to points that were made about the Secretary of State for Wales, we are, as I have said, undertaking an extensive consultation on a preferred route for high-speed rail. No decision has been taken about the right route. All we have is a preferred option. It is entirely appropriate for MPs, including members of the Government, to take part in a debate about what final route should be chosen and make representations on behalf of their constituents.

[Andrea Leadsom]

Will the Minister give way?

[Mrs Villiers]

No.

Several points were made—

[Albert Owen]

Will the Minister give way?

[Mrs Villiers]

I am afraid I really do not have time. We have had a good debate.

[Albert Owen]

On the Welsh Office.

[Mrs Villiers]

I am sorry; I have many points to respond to, and only about another seven minutes—[Hon. Members: “Four minutes.”]—four minutes.

There was strong support from my hon. Friends the Members for Weaver Vale (Graham Evans), for Warrington South (David Mowat), and for Pudsey (Stuart Andrew). I also note the support of my hon. Friend the Member for Elmet and Rothwell (Alec Shelbrooke). A fundamental reason for our need for high-speed rail is to deliver the capacity we need to meet the growing demand for inter-city travel. Despite significant capacity upgrades in recent years, with more to come on the west coast, Network Rail predicts that the line will be pretty much full by 2024. That saturation point could come earlier. If we fail to provide the capacity we need, we will significantly hinder economic growth and worsen the north-south divide. No Government can afford to sit back and ignore that. High-speed rail can provide the capacity we need, as well as shrinking journey times between our major population centres, spreading prosperity and creating jobs, without a net increase in carbon emissions. As the hon. Member for Cambridge (Dr Huppert) said, that is just the sort of sustainable growth we need.

High-speed rail will reshape our economic geography and start to tackle and reduce the economic divide between north and south, as my hon. Friends the Members for Lancaster and Fleetwood and for Pudsey pointed out. The full Y-shaped network is expected to generate about £44 billion for the economy. We are convinced that high-speed rail will do a tremendous amount to integrate the economies of Manchester, Sheffield and Leeds, and to spread prosperity well beyond the cities that are directly served by the line, including destinations in north Wales. As the hon. Member for Clwyd South pointed out, examples such as Lille show that those regeneration benefits are felt well beyond the cities that are directly served by the stations. We believe that the country should aspire for the future to a genuinely national network, which we hope, of course, will include Wales and Scotland. However, long before that point, passengers in Scotland are expected to benefit significantly from shorter journey times resulting from the Y-shaped network, with journeys of 3.5 hours from Glasgow and Edinburgh to London providing an attractive alternative to flights, as highlighted by the hon. Member for Rutherglen and Hamilton West (Tom Greatrex).

North Wales is also likely to benefit as a result of the project we are considering today, because of a GDP boost resulting from taking high-speed rail to Birmingham and then on to the north-west, with benefits in inward investment and tourism. We are determined to do as much as we can to respond to the points that have been made today about the importance of ensuring good connections from the conventional network into new HS2 services. That is one way in which we will succeed in spreading the benefits as widely as possible. Such good connections should enable north Wales passengers to benefit from faster journey times. HS2 would also release capacity on the existing network, benefiting north Wales and destinations in the west and east midlands and the north of England, including Northampton—

[Mr James Gray (in the Chair)]

Order. I apologise for interrupting the Minister. I congratulate hon. Members on the fact that 14 of them have been able to speak in the debate, which is a pretty reasonable number.

Crossrail

Theresa Villiers Excerpts

Wednesday 13th July 2011 Written Statements

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

Crossrail will support economic growth for London and the UK. As part of the comprehensive spending review in October 2010, the coalition Government confirmed their commitment to the full Crossrail scheme. A re-phased programme of delivery means that Crossrail services will commence from 2018. We expect Crossrail to cost no more than £14.5 billion. Forecasts continue to suggest that Crossrail will be delivered within its existing funding.

Crossrail has made significant progress since the last annual update to Parliament. Crossrail Ltd has now let all of its key tunnelling contracts, and enabling works are continuing at a number of sites across central London. Construction is well advanced at Canary Wharf Crossrail station, and tunnel boring machines are expected to be launched in spring 2012. In April 2011, Crossrail passed through the final project review point, at which point the Department and TfL delegated full contractual authority to Crossrail Ltd to deliver the scheme. The new chief executive of Crossrail Ltd, Andrew Wolstenholme, was appointed in May 2011.

During the passage of the Crossrail Act 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 15 July 2010. The relevant information is as follows:

Train-building Industry

Theresa Villiers Excerpts

Tuesday 12th July 2011 Westminster Hall

[Margaret Beckett]

I agree in part with the hon. Lady. I take her point entirely that we are really interested in the future, but let us not overlook the fact that we have barely started. The procurement process has not concluded. All that has happened is that a preferred bidder has been identified and negotiations have been opened. The hon. Member for Amber Valley referred to the intercity express programme contract. In the hands of the Department for Transport, that went to Hitachi, but the contract for that has not yet been signed. Indeed, just before the election the previous Government ordered a review of that contract, and this Government have substantially renegotiated it. We are very far from the conclusion of this bidding process, so although I share the hon. Lady’s view entirely that we should look to the future—I will come to that issue in a second—to secure that future we must not abandon the prospect of changing the present circumstances and the award of this contract.

One concern about the attitude that the company is likely to take relates precisely to the issue of opportunities for the future. If this procurement goes ahead, we may lose the opportunity of an offer made by Bombardier. As I understand it, it has decided at the highest level to establish a worldwide centre of excellence for the design and manufacture of new cars for high-speed trains, for future procurement—of exactly the kind referred to in the debate. Bombardier was prepared to site that worldwide centre of excellence in Derby. That offer was, in effect, thrown back in its face. That concerns me greatly. We would be talking about more jobs—jobs with even higher skills levels than we see now, and with the potential for new technologies. Although I and many in my party applaud what the Cabinet and the Prime Minister said in my Derby constituency about manufacturing, skills and the need to rebalance our economy, the skills base in our city is not just Bombardier; it is also Rolls-Royce. We are a strong manufacturing base, but that base depends on the interaction between those two companies, among others, on the supply chain, and on their ability to work together to establish and maintain that skills base.

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

Does the right hon. Lady acknowledge that the Government of which she was a member set the criteria for the procurement, and that there is no way for this Government simply to ignore the Siemens bid and give the contract to Bombardier? We are bound by the criteria and by European Union rules and we cannot simply rip up the process. Is she advocating that we stop the procurement altogether and start afresh? That would delay considerably the Thameslink programme—which we inherited from the previous Government already running 16 years late—and we would still have no guarantee of Bombardier being the winner at the end of the new procurement process.

[Margaret Beckett]

I am sorry that the Minister decided that this was a good time to make that party political point, when all of us are present to get her and her Department to change their minds and look afresh at all the implications. We all know from our constituents that there are very real questions about whether the right decision has been made and whether proper account has been taken. We have talked about the financing so far, but we have also touched on whether the vehicle is fit for purpose and whether Siemens—although it is a fine company with a great engineering tradition—has the capacity to supply the trains needed.

I am genuinely quite sad that the Minister made that point. As the storm has arisen, not only in the Derby area but in the north-west and elsewhere, we have been inundated with requests from people throughout the country, with other Members and members of the public asking, “What can we do to help? This is a mad decision and none of us agrees with it.” However, for some days I have had the feeling that, to get the Government off the hook on which they so far seem determined to impale themselves, some have been saying, in effect—I am prepared to exempt the Minister—“If we can palm off the blame for this on to the previous Government, then we don’t need to look again at the decision.” I am sorry, but that will not wash this time, because of genuine concern about how the financing was handled, about the train, about the lost opportunity for new manufacturing in the UK and about the knock-on effect on Rolls-Royce. This is not a done deal.

The hon. Member for South Derbyshire (Heather Wheeler) referred to the chair of Bombardier in the UK going to South Africa with the Prime Minister to promote British exports. I would not blame him for viewing the journey with some irony. In South Africa, they will be travelling on new trains, made by Bombardier for South African Railways, which felt able to award that contract. We can all ask why Bombardier could win that contract, but not one in this country.

We are very much at the opening stage in the process of negotiating the contract. The Government have only recently taken delivery of the McNulty report, which also considers the supply chain; we have hardly touched on that yet this morning, but the implications throughout the country are enormous. Genuinely, I say to the Government that this decision is a mistake. I do not accept the simple case that they have put because, as I pointed out, there were opportunities for the Department to look at the financing, but let me take a step back from that. They can blame it on us if they like, but they must change the decision—that is what matters.

--- Later in debate ---

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

It is a pleasure to serve under your chairmanship, Mr Gale. I congratulate my hon. Friend the Member for Amber Valley (Nigel Mills) on securing a debate on this important issue. I welcome the contributions that he and other right hon. and hon. Members have made on this issue, which is important for Derby and the UK. I emphasise that the Government fully understand the concern that is felt. We, too, deeply regret the job losses that are under way in Derby, and we, too, are determined to do what we can to help Derby and Bombardier.

We recognise that Bombardier was hugely disappointed not be made the preferred bidder for Thameslink, but the procurement was set up and designed by the previous Government. Although we were left to open the envelope on preferred-bidder status, they set the criteria against which bids had to be judged. We are legally bound by the criteria set by Labour at the beginning of the process.

We are also legally bound by European law to judge bids on a completely blind basis. Under EU law, domestic and overseas suppliers must be judged impartially and on a wholly equal footing. Against the published criteria we inherited, the Siemens bid clearly represented better value for money.

We cannot make the location for the proposed manufacturing part of the criteria. Contrary to what the shadow Secretary of State, the hon. Member for Garston and Halewood (Maria Eagle), said, it was not a criterion for preferred-bidder status in the IEP contract that Hitachi set up a factory at Newton Aycliffe, although it has chosen to do so.

In response to a number of points made by different hon. Members, I should say that we could not simply rip up the procurement started by our predecessors. That would leave the Government at risk of facing damages in the courts and lengthen the delivery of Thameslink, which, as I have said, and as hon. Members have acknowledged, was already running 16 years late when we inherited it from the previous Government. There was no legal way we could simply ignore the Siemens bid and hand the contract to Bombardier; it simply is not in our legal power to do that.

[Maria Eagle]

Is the Minister really saying she has no power in this matter? She is the Minister.

[Mrs Villiers]

I am saying that, as the Minister, I need to abide by the law and by our obligations under the European Communities Act 1972 and the treaty of Rome; I am afraid I have no choice in that. Going forward, we of course recognise the need to examine wider issues about whether the UK approaches the application of EU procurement rules in the right way and achieves the right balance of risk. Similarly, I agree with my hon. Friend the Member for Amber Valley that we need to see whether our approach is consistent with those used in other member states. That is why the issue will be considered as part of the Government’s growth review.

[Nigel Mills]

On that point, I would like to draw my right hon. Friend’s attention to another quote from Mr Scrimshaw, who is the head of Siemens’s train building in the UK. Rail Professional asked whether he would ever look at building in the UK, and he replied:

“I wouldn’t rule it out. Currently, all the tenders from DfT don’t include requirements for UK manufacture. We have a model that works quite well.”

It seems that Siemens did not entirely rule out the possibility that such a requirement might exist. Perhaps the Department could look at that in future.

[Mrs Villiers]

Even if we had designed the criteria, it remains the case that we could not have made the location of the manufacturing process a condition of successfully achieving the contract; that is simply not permitted by EU law. However, I totally deny the allegation that the Government are sitting back and not taking action. I agree that we need to take action to help Derby and Bombardier. The reality is that Bombardier advised the Department for Transport that it expected to make more than 1,000 redundancies, regardless of the outcome of the Thameslink procurement, because several of its orders are about to reach completion. However, whatever the reason for the redundancies, we want to try to help Derby and the surrounding area at this difficult time.

As a result of the review by Bombardier of its UK rail operations, the Business Secretary has set up an economic response taskforce. It will he headed by Margaret Gildea and its remit will be to mitigate the economic impact of job losses at Bombardier, in its supply chain and in local communities. It will draw on representatives from Derby city council, the county council, Derby college and the Skills Funding Agency. Jobcentre Plus will also deploy its rapid response service, to support workers who will be affected. That is in addition to the work on skills that the Government have been involved with in Derby in partnership with Rolls-Royce and Bombardier, and the support that the Department for Transport is giving to the National Skills Academy for Railway Engineering, which my hon. Friend the Member for South Derbyshire (Heather Wheeler) mentioned. We shall do our best to help Bombardier to get the overseas contracts it is bidding for, such as in South Africa. That is one reason why representatives from Bombardier will accompany the Prime Minister on his visit to South Africa, which is coming up.

[Margaret Beckett]

I should not be a bit surprised if those representatives make the point that it will not help them to gain confidence overseas if they cannot get contracts at home.

I want to raise a point that has been made in several quarters, about the job losses. I, too, have seen the letter from Bombardier to the Secretary of State. It makes two things clear, one of which is that, indeed, as no one has attempted to deny, there were temporary, short-term contract jobs that were due to come to an end, which is a pity. However, it is also clear that more than 400 skilled engineers and designers are being made redundant now because of the loss of the Thameslink contract. Also, I know that the Department has been aware for some time, as I hope Ministers have, that Bombardier has made it crystal clear that if it did not get the Thameslink contract, not only would the new jobs not be coming, but those 400-odd would be the start of the process. It is not right for the Minister to pretend that all those jobs were going to go anyway. That is just not true.

[Mrs Villiers]

As I have said, whatever the reason for the job losses, it is important that we should work together to help Derby in this difficult time.

[Chris Williamson]

Will the Minister give way?

[Mrs Villiers]

No. I am afraid I have only a few more minutes, and a long list of points to get through. I want to try to respond to my hon. Friend the Member for Amber Valley.

My hon. Friend was concerned that in some way the Department for Transport discriminated against Bombardier. Absolutely not. We fully respect the excellence of the engineering facilities at Bombardier. We are determined that it should be judged on an impartial basis, so there is no question of any predisposition against Bombardier, or any discrimination.

Several hon. Members have expressed concern about the combination of long-term funding and maintenance and whether we should take the approach to procurement in the future of judging each procurement on its merits. It was not possible to sever those elements of the bid process from the criteria we inherited from the previous Government. They combined long-term maintenance and funding, and it would not have been possible for us to sever those criteria and start again, for the reasons I have given.

My hon. Friend the Member for Amber Valley thought that there was a case for leaving more procurement decisions to the train operators and the rail industry. I agree on that. He also asked about the margin between Siemens and Bombardier. I am afraid that that is commercially confidential at the moment and I cannot share it with the House. It would not be in the interest of Bombardier, Siemens or the taxpayer for me to do that. Several hon. Members, including my hon. Friend and the shadow Secretary of State, have expressed concern about the Siemens bogie. That has been evaluated. The bogie is based on proven technology used elsewhere. Its development began in 2007 and it is expected to have undergone about 1 million miles of testing before it goes into passenger service. As to concerns about peaks and troughs in rolling stock orders, yes, we need to consider that in future, and we shall do so as part of our consideration of the McNulty review.

My hon. Friend the Member for Mid Derbyshire (Pauline Latham) spoke passionately and movingly about the impact of job losses. She asked about a meeting with the Prime Minister, and he has asked the Business Secretary to meet Councillor Philip Hickson of Derby city council. In answer to the question of the hon. Member for Derby North (Chris Williamson) about assessment of the position in Germany and France, we looked carefully at their approaches, and will also do so as part of our growth review. As to whether we will publish the results of the value for money assessment of the Siemens bid, it is not possible at this point, as I have said, to publish such commercial details, because they are commercially sensitive. The hon. Gentleman asked what legal advice the Department obtained on changing the invitation to tender. As I have made clear, we are legally bound by the criteria we inherited from the previous Government, and those were thoroughly assessed by our legal advisers.

[Chris Williamson]

Will the Minister give way?

[Mrs Villiers]

No, I am sorry. I have a lot of points to make, and I propose to make them.

My hon. Friend the Member for Solihull (Lorely Burt) rightly emphasised the benefits of open markets and highlighted the dangers that going down a protectionist route might have. The hon. Member for Birmingham, Erdington (Jack Dromey) talked about how the Government could use their £100 billion public procurement programme to underpin economic recovery. Of course we will consider that as part of our growth review. My hon. Friend the Member for Crewe and Nantwich (Mr Timpson) was concerned about the amount spent on consultancy. The bulk of that happened under the previous Government, but I agree that we need a more efficient approach to spending on consultancy in relation to procurement in the future. Since the general election the consultancy spend has been considerably reduced.

It is important to recognise that Bombardier, alongside other train manufacturers and train and component supply chain businesses in the UK, will have the opportunity to bid for a range of contracts in the future. We are reforming the franchise system to incentivise train operators to invest in new rolling stock. We have given the go-ahead for the tube upgrades. We have secured funding for Crossrail. We are going ahead with a consultation on high-speed rail. Bombardier is a highly successful global company, with a proven record of winning big contracts for its Derby works and elsewhere. It has done so in the past; we see no reason why it should not be well placed to do so again in the future. In recent years it secured orders for nearly 1,400 carriages for London Underground’s sub-surface line, 376 for the Victoria line and 232 for London Overground. It has been shortlisted for the Crossrail order. Its striking success rate on tube-related contracts must put it in a strong position for when London Underground next needs to procure new carriages, which, thanks to the securing of funding for the tube upgrade, will happen in due course. Only a few weeks ago, Bombardier won a £354 million signalling contract for London Underground.

For all those contracts we are determined to ensure that domestic suppliers are treated entirely impartially and given a fair chance of getting them. The fact that the coalition Government have secured funding for such a major programme of capacity enhancement will result in major opportunities, not just for Bombardier but for other train component and supply chain manufacturing businesses in this country. Following its nomination, for example, as the preferred bidder for the intercity express programme contract, Hitachi has announced that it is locating its train manufacturing services for Europe at Newton Aycliffe in County Durham. That will provide significant opportunities for UK component manufacturing. As has been said, if the Siemens Thameslink bid proceeds to conclusion, it will involve the creation of 2,000 jobs in the UK. It has indicated that it intends to use elements of the UK supply chain to supply its bid.

This has been a difficult debate, and it is a difficult time for Derby. We are determined to help.

[Chris Williamson]

Will the Minister at least give an undertaking to take legal advice on the possibility of calling in the decision and reviewing it, with the possibility of reversing it, as has happened with previous contracts?

[Mrs Villiers]

We have looked extensively at the contract and have done the numbers very carefully. As I have said, it is not legally possible for us to rip it up. We need to ensure that in future, Bombardier and all our domestic suppliers will be well placed to compete effectively for bids and competitions that will be made possible by the coalition’s commitment to investing in our railways.

The Olympic Route Network

Theresa Villiers Excerpts

Monday 11th July 2011 Written Statements

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

The Olympic Route Network Designation (Amendment) Order 2011 has today been laid before Parliament. The order comes into force on 8 August.

This order, made by the Olympic Delivery Authority following a three-month public consultation, makes a number of changes to the roads originally designated in a June 2009 order as forming the Olympic route network (ORN). The ORN is a set of roads that will be used during the 2012 London Olympic and Paralympic games to provide safe and reliable transport for athletes, officials, the media and marketing partners (together the “games family”) between sporting and non-sporting venues.

The amendments set out in the order comprise both additions to and removals from the designated roads, and add a net 1.3% to the length of the ORN. The changes reflect the work carried out by the ODA and its delivery partners since the initial designation on the plans for implementing the ORN and for the games more widely—particularly on the movement of vehicles carrying members of the games family on the approaches to the competition venues. The changes aim to secure more effectively safe and reliable transport for the games family and reduce the impacts of ORN operations on normal business. They reflect ODA’s careful consideration of the 43 responses received to the consultation exercise on proposed changes carried out last year.

Staging the games presents a significant challenge to our transport systems. The ORN remains a key part of our plans to ensure successful transport at the games, for those participating, for spectators, and for those going about their normal business. We remain committed to implementing temporary, tailored and proportionate measures on the ORN that meet the games’ needs while minimising the impacts on others. Extensive local engagement by the ODA and Transport for London on the detailed plans for implementing the ORN, taking account of the changes set out in this order, is now under way.

A full report on the ODA’s consultation exercise and maps showing the revised ORN will be available on the ODA’s website at www.london2012.com/orn. The ODA will also be writing to all respondents to the consultation exercise to inform them that the order has been laid.

Oral Answers to Questions

Theresa Villiers Excerpts

Thursday 23rd June 2011 Commons Chamber

[Neil Carmichael (Stroud) (Con)]

4. When he expects the Swindon to Kemble railway redoubling project to commence.

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

Network Rail has commenced design work, and I expect implementation to start in 2012-13, with completion by 2014-15 ahead of electrification works on the Great Western main line in 2016-17.

[Neil Carmichael]

Does the Minister agree that this is an example of intelligent investment to promote economic growth? It will be great news for Gloucestershire, and stands in complete contrast to the failure of the last Labour Government to provide any support of this kind to the railway system.

[Mrs Villiers]

I am grateful to my hon. Friend for his question. He and many of his colleagues in the House have fought a hard campaign for redoubling, and I am delighted that the coalition can deliver that. In addition, the introduction of intercity express programme trains should lead to reductions in journey times and to frequent services, which will benefit the economy in his constituency and surrounding areas.

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

My right hon. Friend will know that local businesses, local MPs—including me—and the local authority in Swindon would like to see the development of a branch station on the Kemble line at Sparcells. What advice and encouragement can she give to me and to local agencies on the development of that station?

[Mrs Villiers]

My hon. Friend has also fought a hard campaign to improve rail services in his area. My advice in respect of that project would be to continue to engage closely with the local authority, which has the leading role in taking forward and funding such projects, and to engage closely with Network Rail and the train operator to see what might be logistically feasible to consider in the future.

[Nic Dakin (Scunthorpe) (Lab)]

5. What progress has been made on the review of toll charges on the Humber bridge.

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[Emily Thornberry (Islington South and Finsbury) (Lab)]

7. What steps his Department is taking to ensure that the Crossrail programme provides adequate toilet facilities at stations and on its rolling stock.

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

Provision of adequate and accessible facilities is an important consideration for many passengers. The majority of Crossrail stations will have toilet facilities. Since this will be a high frequency metro service, with most passengers travelling relatively short distances, we have no current plans to provide toilets on Crossrail trains.

[Emily Thornberry]

Crossrail is currently building a huge new station at Farringdon, which we welcome. However, will the Minister join me in urging Crossrail to build some toilets at Farringdon station? As Councillor Charalambous so eloquently put it:

“They are causing years of inconvenience to local residents and businesses—this is the least they can do. At the end of the day,”

men

“piss against everything around here—inevitably they’ll be pissing in their stations and they won’t like it.”

[Mrs Villiers]

I am sure the hon. Lady will be aware that the redevelopment of Farringdon station involves Crossrail and Thameslink. It is going to be an exceptionally busy and important station after that and there will be toilet facilities. It is intended that those facilities will be provided in the London underground aspect as part of the Thameslink upgrade, so Crossrail passengers are likely to have access to facilities nearby as part of the London underground upgrade.

[Nigel Mills (Amber Valley) (Con)]

When it comes to providing toilets, and indeed the whole rolling stock, will the Minister assure me that there will be a level playing field so that there is a fair chance that rolling stock can be constructed in Derby in the UK, rather than in Germany as in the announcement last week?

[Mrs Villiers]

It is vitally important that all procurement processes are entirely fair to suppliers, including Bombardier.

[Kevin Brennan (Cardiff West) (Lab)]

8. What proportion of its stake in NATS Ltd the Government plan to sell; and if he will make a statement.

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[Katy Clark (North Ayrshire and Arran) (Lab)]

11. What recent assessment he has made of the effects on household budgets of changes in rail fares.

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

A distributional analysis of the impact of rail fare increases was conducted during the spending review and used to inform Department for Transport and Treasury decisions on spending review outcomes.

[Katy Clark]

I thank the Minister for that answer. Is she aware of research by Passenger Focus that shows that people who buy their tickets from ticket machines pay far more expensive fares than if they used one of the staffed ticket offices? The McNulty report calls for the closure of half of all our staffed railway offices. Will she decide to reject those proposals to ensure, among many other reasons, that people get the cheapest fares they can?

[Mrs Villiers]

The industry needs to do a lot better on its ticket machines and to ensure that passengers are properly informed about the ticket choices available. We will continue to challenge the industry to do that through our fares review and the White Paper on the future of the rail industry which we intend to publish in November.

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

Given the Government’s decision to increase rail fares by 3% above inflation for each of the next three years, many commuters will have to spend a fifth of their household income—more than their mortgage or rent—just to get to work. Incidentally, that would be equivalent to the Minister of State having to pay almost £20,000 a year. Instead of asking commuters to plug the hole caused by the transport budget being cut too far and too fast, will she think again?

[Mrs Villiers]

We faced the largest peacetime deficit that we have ever faced. To continue with the biggest programme of rail upgrades in modern history, we unfortunately must ask passengers to make a contribution. The blame lies fairly and squarely with the previous Government for leaving us with a deficit and letting the cost of the railways spiral out of control.

[Elizabeth Truss (South West Norfolk) (Con)]

12. What assessment his Department has made of the potential benefit to the economy of upgrading the railway line between Cambridge and King’s Lynn.

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

Our current plans envisage that passengers on the fen line could benefit from new intercity express trains from 2018. That would offer improved passenger accommodation and a shorter journey time to London, subject to a satisfactory outcome to contractual negotiations with Agility Trains and timetabling arrangements that will be finalised with the future franchisee.

[Elizabeth Truss]

With the area’s economic growth and the fact that passenger numbers between Downham Market and Cambridge have increased by 150% in the past 10 years, does the Minister agree that expanding the fen line northwards should be a key consideration in Network Rail’s next phased upgrade?

[Mrs Villiers]

My hon. Friend has campaigned strongly to improve services on the fen line. I pay tribute to her and the other local MPs who take this seriously. She is absolutely right that passenger numbers have been increasing. This has been a real success story. I would certainly encourage her and her constituents to engage with Network Rail, as it looks to the next railway control period to see what infrastructure improvements might be deliverable within affordability constraints.

[Jo Swinson (East Dunbartonshire) (LD)]

14. What steps he is taking to encourage take-up of low-carbon vehicles.

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[Gavin Barwell (Croydon Central) (Con)]

17. Whether he plans to bring forward proposals to prevent unplanned industrial action on London Underground.

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

Existing legislation requires trade unions contemplating industrial action to ballot their membership and give due notice to the employer. The Government encourage both London Underground and the trade unions representing its employees to resolve disputes as quickly as possible through negotiation.

[Gavin Barwell]

Given the huge disruption that strikes on the underground cause for my constituents and for London’s economy, is it not about time that there was a no-strike agreement on this vital public service, preferably negotiated with the union, but failing that through Government legislation?

[Mrs Villiers]

Of course, I am well aware of the Mayor’s ambitions to get a no-strike agreement, which I think would be very positive if he could negotiate it with the unions. With regard to changing strike law, the Government are not rushing to any kind of confrontation with the unions, but Mr Crow and his colleagues at the RMT must recognise that the more irresponsibly they behave, holding London to ransom, the more they strengthen the argument of those who want a change in strike law.

[Kate Green (Stretford and Urmston) (Lab)]

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

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[Mrs Helen Grant (Maidstone and The Weald) (Con)]

T4. Will the Minister meet me to discuss performance issues on the Medway valley line, which runs through my constituency?

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

I would be entirely happy to do that. It is important that all rail passengers have access to reliable services. The Under-Secretary of State for Transport, my hon. Friend the Member for Lewes (Norman Baker) and I are very focused on that issue and would be happy to meet my hon. Friend.

[Margaret Beckett (Derby South) (Lab)]

Is the Secretary of State aware that words such as “rebalancing our economy to promote private sector jobs and skilled manufacturing” ring very hollow in Derby, where 3,000 such jobs are now at risk as a result of a decision to build Thameslink trains in Germany? I understand that the Government reviewed and reconfirmed the contract after the election, but I understand also that the Secretary of State still has the power to call in the process and to invite the bidders to re-tender. Can he confirm that he will now do so?

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[Mrs Villiers]

The issue of a short franchise will not have an impact one way or another on those decisions, so I can give my hon. Friend an assurance on that. I cannot guarantee that future franchises will necessarily reintroduce through services, so it will be very important, with him, to work with bidders for the next franchise to find out what they consider viable and commercially viable. I can assure him, however, that the Government’s commitment to delivering the Beccles loop will provide more frequent services and, I hope, a significant economic benefit to his constituents.

[Heidi Alexander (Lewisham East) (Lab)]

Commuters in Lewisham repeatedly express to me their anger about having to pay ever increasing rail fares for ever more overcrowded train services. What discussions has the Minister had recently with the Mayor of London to impress on him that train services are as important, if not more so, than his beloved bikes?

[Mrs Villiers]

I can assure the hon. Lady that this Government are placing a high priority on tackling overcrowding on our railways. In more or less every spending squeeze there has ever been, the first thing that gets axed is transport upgrade projects. We have committed significant funds to the Mayor of London to upgrade London’s transport systems, and we are committing significant funds across the rest of the country to support investment in our railways to relieve overcrowding. It is a high priority for us and for the Mayor.

[Gordon Henderson (Sittingbourne and Sheppey) (Con)]

T8. What steps is my right hon. Friend taking to mitigate the effects of foreign hauliers who use their advantage of being able to buy fuel more cheaply on the continent to undercut British companies?

--- Later in debate ---

[Mrs Villiers]

I am very much aware of the potential benefits of that project in helping to regenerate an area that is heavily dependent on public sector jobs. For precisely those reasons, it would be an impressive candidate for funding from the regional growth fund. I understand that the local authorities are working on that at the moment. I pay tribute to the work done by those in Burnley and on Lancashire county council on getting the project moving. My officials stand ready, and are indeed working with the local authorities, to see how we might be able to help to take things forward. This is primarily a local matter, but there is the real prospect of a successful RGF bid.

[Kelvin Hopkins (Luton North) (Lab)]

Eddington identified congestion as a major and growing cost to the economy. Across Europe, towns and cities have light rail systems, which alleviate congestion. When are the Government going to put real political will and resource behind developing light rail systems across Britain?

Air Travel Organisers' Licensing (ATOL) (Consultation)

Theresa Villiers Excerpts

Thursday 23rd June 2011 Written Statements

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

I am pleased to announce that a consultation on reforming the air travel organisers’ licensing (ATOL) scheme is being published today.

Since its inception some 40 years ago, the ATOL scheme has successfully protected many millions of consumers on flight-inclusive package holidays against the insolvency of their travel company. However, the travel trade and holiday market has seen significant change and diversification in recent years. There are now many holidays available which look like packages but do not fall under the legal definition and so are not protected under the ATOL scheme.

There is a strong case for reforming the scheme to better reflect today’s holiday market so that consumers can be clear when their holiday is protected, allowing them to understand and use their legal rights. In addition, the scheme has operated with a deficit for some years and is supported by taxpayers through a Government guarantee. The reforms should put the ATOL scheme on the path to financial self-sustainability, with a view to ending the need for taxpayer support.

The consultation document sets out the details of the “in principle” decisions I announced on 3 February, Official Report, columns 56-57WS. These were:

Extending the ATOL scheme to flight-plus holidays comprising a flight and other component bought within two successive days;

That everyone booking a ATOL protected package holiday or flight-plus will get a recognisable “ATOL certificate” confirming their rights under the scheme for refunds and repatriation should their travel company fail;

Helping ensure that “agent for the consumer” businesses arranging holidays are fully aware of their legal responsibilities to consumers.

It contains the draft secondary legislation needed to implement the first two measures.

This is an important first step towards reforming the ATOL scheme. These reforms will address a major area of uncertainty for consumers when buying holidays from tour operators and travel agents. The additional ATOL protection contributions at £2.50 per booking should help the scheme become financially self-sustaining within three years.

Importantly, the reforms pave the way for further potential change to the ATOL scheme in the medium to longer-term. Once the scheme’s deficit has been paid off and the guarantee withdrawn, there is an opportunity to consider how funding repatriations and refunds might best be arranged in today’s market. The consultation seeks initial views on this, to inform more detailed work to be undertaken by the Civil Aviation Authority later in the year and into 2012.

The consultation also asks stakeholders about bringing holiday sales by airlines and those arranged on an “agent for the consumer” basis into the scheme. These would require new primary legislation. The Bill to reform airport economic regulation could provide a vehicle to make the necessary changes if the Government decide to go ahead with these further reforms. Decisions on reforms needing new primary legislation are planned for the autumn and may also need to take account of work under way by the European Commission on the future of the package travel directive.

The consultation closes on 15 September 2011. My aim is to announce decisions in the autumn on the way forward on the reforms dependent on new secondary legislation. Subject to consultation responses, the intention is for the reforms to come into effect on 1 January 2012, so consumers have the benefit of the additional protection from their summer 2012 holidays.

Copies of the consultation document are available from the Department’s website, www.dft.gov.uk.

Thameslink Rolling Stock

Theresa Villiers Excerpts

Thursday 16th June 2011 Written Statements

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

The Department for Transport is today announcing the identity of the preferred bidder for the new fleet of trains required for the Thameslink programme. This represents a significant milestone in the delivery of this crucial rail upgrade project.

The £6 billion Thameslink programme includes major improvements to central London stations such as Blackfriars, Farringdon and London Bridge and will generate significant benefits for passengers. It will make travelling across London and the south-east faster, easier and more reliable and will reduce crowding on some of the busiest sections of London’s transport network. It will see the introduction of a new generation of electric commuter trains operating with metro-style frequency at up to 24 trains per hour through the central section during the morning and evening peaks.

This new fleet of trains comprises some 1,200 carriages. By the end of 2018, this will almost double the capacity of Thameslink’s core central London section in the peak periods. It is a major part of the Government’s commitment to introduce an additional 2,100 carriages on to the rail network by 2019, as announced in November of last year. The new Thameslink fleet is expected to release existing carriages for use elsewhere on the network, particularly as further routes are electrified, for example in the north-west of England and the Thames Valley commuter lines.

The competition to supply trains and maintenance services for the Thameslink programme was designed and launched under the previous Administration in 2008, in accordance with EU procurement procedures. In October 2009 the previous Government announced that the two remaining short-listed bidders were Siemens Plc with Cross London Trains (XLT) and Bombardier Transportation UK Ltd with VeloCity. Since then, a great deal of work has been undertaken by the Department with both bidders to refine proposals and to secure best and final bids.

Following the completion of the process, I can announce today that the preferred bidder for the supply of the new Thameslink trains will be Siemens Plc with Cross London Trains (XLT)—a special purpose company comprising of Siemens Project Ventures GmbH, Innisfree Ltd and 3i Infrastructure Plc.

The Siemens-led venture will deliver the first new train on to the network by the start of 2015, with the order complete by the middle of 2017. The new trains will offer a step change in passenger experience, with greater passenger carrying capacity, improved passenger communication and easier access for passengers with specific mobility needs. They will also deliver high-levels of reliability with the owner and manufacturer of the trains liable for financial penalties if the trains do not perform.

The choice of Siemens Plc with Cross London Trains (XLT) as preferred bidder represents the best value for money for taxpayers. Siemens is today confirming that this announcement will create up to 2,000 new jobs in their UK operations and across the UK supply chain in train component manufacturing, with a particular focus in the North-East of England, and in the construction of the depots and subsequent maintenance of the new fleet of trains.

These jobs are additional to those created by the Thameslink infrastructure works which are currently underway. At the peak of construction activity—during the reconstruction of London Bridge station from 2013 to 2018—we expect around 3,000 people to be directly employed on the Thameslink infrastructure works as a whole, with as many again employed in related jobs in the wider community. Taking account of other investments in rail announced by this Government, including Crossrail and the Inter City Express programme, the total peak construction employment rises to around 17,000 people.

In order to maintain momentum on the Thameslink programme, it is important that discussions with Siemens Plc and Cross London Trains move forward quickly to enable financial close to occur as soon as practicable. That is, of course, subject to the Government being satisfied that the proposal continues to offer value-for-money as the commercial discussions are concluded.

The alternative bidder, Bombardier Transportation UK Ltd with VeloCity—a special purpose company comprising Bombardier Transportation (Holdings) UK Ltd, RREEF Ltd, Serco Holdings Ltd, Amber Infrastructure Group Ltd and SMBC Leasing (UK) Ltd—also presented an attractive proposal and it is our intention to retain them as the reserve bidder.

This announcement of the preferred bidder for these new trains marks further progress in the delivery of the Thameslink programme, and reinforces the Government’s commitment to upgrading the capacity, quality and reliability of our transport infrastructure and ensuring high value for money for the taxpayer in delivering major rail projects.

Eyesight Tests (Drivers)

Theresa Villiers Excerpts

Wednesday 15th June 2011 Westminster Hall

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

It is a pleasure to serve under your chairmanship, Mr Streeter. I congratulate the hon. Member for Sheffield, Heeley (Meg Munn) on securing this debate, on her speech today, and on her long-standing work on this important issue. It is a welcome opportunity to highlight the crucial point that those with defective eyesight that does not meet the required standards should not drive on our roads.

I want to put on record my sincere condolences for the hon. Lady’s constituent, Joy Barnes, on the tragic death of her niece, Fiona Buckley, in the incident that the hon. Lady described. The case was tragic, and I offer my sympathies to Fiona’s family and friends for their loss.

In responding to the issues raised by the hon. Lady, it may help if I reiterate and clarify the current arrangements for renewing the entitlement to drive. Most drivers do not need to renew that entitlement until the age of 70. They must then renew every three years for as long as they remain fit to drive. Someone at the age of 70 could be fitter, more alert and more active than some individuals who are younger, which is why licensing decisions are based on health rather than age. Although age is not always a reliable indicator of an individual’s physical and mental health, it is widely accepted that health can deteriorate in old age in ways that may affect the ability to drive safely.

When renewing their entitlement to drive, drivers must, as the hon. Lady said, complete a self-declaration affirming their ability to read a number plate from 20 metres away. They must also confirm that they do not have any medical condition that affects their ability to drive safely. That allows attention to be focused on those individuals who declare that they have a medical condition, those who have been found to have one, and those who need some sort of investigation to determine whether they can retain their licence to drive. Those detailed investigations into medical fitness to drive may include the collection of information from the driver and their doctor, a physical examination or a driving assessment.

The hon. Lady expressed concern about drivers who do not tell DVLA that they can no longer meet the level of fitness, including eyesight, needed for driving. One may speculate that that is because they worry about the impact of losing their licence, or because a medical condition makes them unaware of the implications of their failing health. That is why DVLA accepts notifications from third parties, and that is an important element of the enforcement process. Around 8,000 notifications of concern received from doctors, police and family members are investigated each year. Guidelines produced by the General Medical Council for doctors confirm that they are justified in telling DVLA about a patient who fails to stop driving following medical advice to do so. Similar guidelines have been produced by the College of Optometrists for its members.

DVLA forms and literature remind drivers of the ongoing requirement to meet the eyesight standard, and specifies that failure to meet the standard is an offence. Whenever DVLA contacts drivers, consideration is given to whether it is possible to highlight the continuing obligation to notify the DVLA of defective eyesight and appropriate medical conditions. We also seek to give information to drivers about the conditions that they must tell DVLA about relating to field of vision. That is an important part of the enforcement process. Directgov has an A-Z of medical conditions to help drivers to decide whether they need to tell DVLA of any aspect of their health. Detailed guidelines for doctors are also available to help them to advise their patients on medical notification requirements.

The Government’s view is that the current arrangements strike the right balance between road safety and personal mobility. There is not sufficient evidence to suggest that a more burdensome and costly regime would have a significantly positive effect on road safety. The majority of older people continue to drive safely, and to retain insight into their ability to do so.

[Meg Munn]

I understand what the Minister is saying about conditions, and being able to look things up, which is fine if someone knows that they have a problem, or someone has suggested that their sight is deteriorating, for example, but much of the evidence is that people simply do not know. Providing information does not help them, and unless they have a test they may not know that they are suffering a problem.

[Mrs Villiers]

As I said, whenever possible, the communications that DVLA sends to drivers refer to those conditions to alert them to the continuing need to ensure that they can pass the 20 metres test. One of the benefits of that test is that it is simple, and people can do it if they walk outside this building. We seek in those ways to alert people to the importance of doing that test regularly. On the whole, older people make sensible decisions about when and how they drive, and some older drivers voluntarily engage with local services to improve their driving skills and get independent advice.

The hon. Lady made a number of points about the effectiveness of the number plate test as a way of testing vision. As she said, the standard of vision required for safe driving requires someone to read a number plate at a distance of 20 metres. For people with visual field problems, other specific standards have to be met. All drivers are required by law to meet the appropriate eyesight standard at all times while driving. If they are unable to read a number plate, even if that is only because they failed to wear the appropriate prescribed glasses or lenses, they are committing an offence. Driving licence applicants must declare that they are able to read a number plate to obtain a licence. They will be asked to prove their ability to do that to their driving instructor during the practical driving test.

I assure the hon. Lady that we comply with EU directives on the visual field. The number plate test is not expected to test the visual field. A visual field problem is caused by an underlying medical condition, and those with such conditions are required by law to notify the DVLA, which has long-standing procedures in place to assess whether the minimum visual field requirements are met. Those requirements include referral to an optometrist for a specialist examination and report. The Government believe that the number plate test is an effective screening tool. Its use as a means of assessing whether a driver meets the required eyesight standard has been subject to departmental and Scientific Advisory Committee scrutiny, and it has stood the test of time.

The hon. Lady referred to a consultation document that was issued in relation to a possible revision of health standards for driving. That consultation looked at whether, instead of maintaining our current higher standard, the UK standard should be brought into line with the minimum required by the European Union. No decision has yet been made, but if it were proposed to align our standard with the minimum standard required by the EU, the distance over which someone is required to read a number plate would be reduced. Responses to the consultation are being analysed; some issues need further consideration and that is under way at the moment. It is important that any proposed changes are evaluated fully and that appropriate consideration is given to their potential impact. The points raised by the hon. Lady this afternoon will no doubt feed into the process of reaching an ultimate decision. Once an evaluation of the consultation responses is complete, the Government will take an informed decision on how to proceed and issue a formal response to the consultation.

In the meantime, there is much to be said in support of the current system. The number plate test is a simple and functional assessment of vision that can be easily carried out in the driving environment and reproduced regularly by an individual, as opposed to a periodic appointment with an optician. Although it is largely a test of visual acuity, to some extent it can test glare and contrast sensitivity. It provides a good indication that the licence holder meets—and continues to meet—the required visual acuity standards for driving. The test is easily reproduced at Driving Standards Agency test centres by examiners, and at the roadside by the police.

At a modest estimate of £20 per test, it would cost more than £20 million each year if an optician’s certificate or eyesight test were required by the 1 million motorists who apply for their first driving licence. If such a test were compulsory for each of the 2.5 million motorists who renew their driving licence each year because their photograph is 10 years old, it would cost more than £50 million a year.

[Meg Munn]

The Minister is generous in giving way again. Given the cost of motoring, the figures she mentions are tiny amounts of money compared with what people spend on learning to drive. Does she understand how complacent she sounds, and how angry my constituent will be at her response? Given her inability to offer any comfort to my constituent, will the Minister take on board the need to do a great deal more to raise awareness of this issue?

[Mrs Villiers]

I completely refute the allegation of complacency. The Government are very focused and place high priority on road safety. We are determined to continue the UK’s good record on road safety, but we believe that the current arrangements are an effective means of maintaining safety on our roads. We must take into account the costs of what the hon. Lady proposes. Household budgets are stretched at the moment and it is tough for people to add to those budgets commitments of this kind. If each of the 1.5 million motorists who renew their driving licence at the age of 70 were required to undergo such a test, that would cost a further £30 million each year—a significant sum of money. As all drivers over 70 are entitled to a free eyesight test, that additional burden and cost would fall on the Department of Health and the devolved Administrations. Added to that is the caution that, while an optician’s certificate, or equivalent, might provide assurance that someone has had their eyes tested, it would not guarantee that they could meet the current eyesight standard while driving, or that they used their prescribed glasses or corrective lenses. The optician’s test does not provide all the answers.

In conclusion, the Government are confident that current arrangements are effective and working well. The UK has one of the safest road networks in the world and I am afraid that we simply cannot justify the cost that indiscriminate, mandatory eyesight screening would impose on individuals, the Government and the devolved Administrations. Furthermore, there is little evidence to suggest that compulsory formal eyesight tests would have any marked positive effect on road safety.

The coalition Government take road safety seriously and are determined to maintain and improve the country’s long-standing and strong record. Any road death caused by defective vision is an avoidable and unnecessary tragedy, and all of us who use UK highways must take personal responsibility for ensuring that we have an appropriate level of vision for driving. I take the opportunity to place on the record how important it is that all drivers, regardless of age, do not simply wait for their next eye appointment, but check regularly that they can read a number plate from a distance of 20 metres. That simple test can alert individuals to a deterioration in their vision that they may not have noticed, and to the need to make an appointment to see their optician. The number plate test is saving lives on our roads. It is an effective test in which the Government continue to have confidence.