(6 years, 5 months ago)
Commons ChamberI do not want to agree with the right hon. Gentleman too often, otherwise this fleeting romance might become a marriage—heaven forbid, as we know how that worked out for the Liberal Democrats last time round—but he is right again. Rapid charging will, to some degree, help with that, but we also need a sufficient number of charge points, conveniently located.
It is possible that, knowing me as he does, the Minister assumed, not unreasonably, that in making my point about the look and feel of the charging points I was merely advancing a case for aesthetics. It is true that, like Keats, I believe that truth is beauty and beauty is truth, but getting the appearance of the charging points right will be vital to the gaining of public acceptance. People know what a pillar box looks like, they know what a telephone box looks like, and they need to know with equal certainty what an electric charging point looks like. It should be beautiful, but it should also be immediately identifiable for what it is.
Having made those few points, I endorse all that the Minister said about the character of the amendments and the nature of the consideration so far. Once again, I congratulate him on the role that he has played—together, by the way, with my old friends on the Opposition Front Bench, who have themselves played a dutiful and entirely responsible role in trying to make this legislation better.
It is a pleasure to follow the right hon. Member for South Holland and The Deepings (Mr Hayes).
Cheers! We had better watch out that this does not become the road to a marriage.
The right hon. Gentleman—the former Minister—talked about the standardisation of charge points, and I agreed with what he said. I thought that he was going to end with a reference to the “Hayes hook-up”.
I will be brief, although last night I got a slight kick out of speaking for longer than others thought I was entitled to. I support the Bill, as do the Labour Opposition, and I support the Lords amendments, most of which are tidying-up measures. I also welcome the clarification on hydrogen fuel cells because there is no doubt that hydrogen will play a big part in the decarbonisation of transport.
In particular, I support Lords amendment 32, which requires the Secretary of State to report on the impact of part 2 of the Bill. I have previously pointed out to the Minister that when I have tabled amendments suggesting that the Government should report, I have always been rebuffed. I looked back and found the new clauses about reporting that I tabled in the Public Bill Committee, and, in the context of the reporting to which the Government are committed, I hope that they will take on board some of my previous suggestions.
One of my new clauses, entitled “Review of impact of Part 2”, required the Secretary of State to report on
“the number and location of charge points in the United Kingdom…the resulting uptake of electric vehicles…the manufacturing of electric vehicles”.
Another, entitled “Report on electric charging points”, referred to the development of
“a strategy for establishing charging points for…domestic properties…urban and rural settlements, and…the road network.”
Does the hon. Gentleman agree that it is important for the motorist to know where the charging points are? Most satellite navigation systems have a feature that will display the locations of filling stations. Is it not essential for them also to display the locations of electric charging points?
I agree wholeheartedly. There are already online maps that can do that, but it is important for people to be aware that the information exists, so that they can take comfort in the knowledge that they can undertake longer journeys because they know exactly where the charging points are.
I also tabled a new clause requiring the Secretary of State to report on the impact of charging points on
“energy consumption…grid management, and…grid storage capacity.”
Regular reporting would obviously keep Members informed, but it would also help Governments to develop future strategies.
I welcome the Bill and look forward to its implementation, but I have another request. I hope that there will be some trials of autonomous vehicles in Scotland, because that has not happened yet.
I first want to say that I do not think marriage is an option so long as I do not wear a tie, because I know that the right hon. Member for South Holland and The Deepings (Mr Hayes) has strong views on that subject, so I may be tieless for a long time to come.
I want to reinforce the point about talking to local authorities about flatted developments, but also—I have already had such inquiries, as I suspect other Members have—about residents who want to be able to charge their electric car where they park it at the front of the house, but cannot do so because of the issues of dropped kerbs and so on. That will become a growing problem in future years.
We must ensure that we can respond to the way in which technology changes. I want to put in a plug—pardon the pun—for the Dearman engine, with which the right hon. Gentleman may or may not be familiar, which works on liquid nitrogen. It has some very exciting applications in relation to the auxiliary power units used at the front of refrigerated trucks, which at present often use some of the dirtiest engines available, without any sort of environmental controls. Such technology has the ability to address some very significant air quality issues in our town centres, but it would also require an infrastructure for liquid nitrogen, which is clearly not readily available at present.
This is a very welcome set of amendments. The Bill is also welcome, but it must be flexible enough to pick up and move with other technologies as they develop.
(6 years, 5 months ago)
Commons ChamberI am a civil engineer by profession and so have an appreciation of the importance of infrastructure investment. For too long, successive UK Governments have not invested enough money directly into infrastructure. The correct infrastructure projects can lead to increased productivity, increased connectivity, a possible increase in visitors, a possible increase in trade and contributions to growth in the economy. Clearly, those are all the hoped-for benefits of the additional runway proposed for Heathrow.
When it comes to decision making on infrastructure, Governments are often too frightened to make decisions because of potential impacts and disruption. Heathrow has been a case in point: the expansion and additional runway have been spoken about for decades. It is only right that the pros and cons are assessed, and this must be done with a balanced perspective. The Airports Commission recommends the additional runway at Heathrow, and the National Infrastructure Commission has said that it wants it to proceed. The Scottish Government have spoken in support of it in principle, and I have spoken in favour of it, although I have highlighted some concerns.
I am grateful to the hon. Gentleman for giving way. He mentions the support of the Scottish Government. Until 24 hours ago, the SNP Scottish Government said that they supported expansion at Heathrow airport and looked forward to Scotland seeing the benefits. What has changed in the past 24 hours?
Sometimes when we take an intervention, we worry about what is going to come and trip us up. That was so obvious that I did not see it coming. If the hon. Gentleman waits and is willing to listen to the rest of my speech, I will set out where I am going.
After forensic analysis, the Transport Committee recommended approval of the national policy statement, but with a considerable number of recommendations for consideration. The proposed expansion at Heathrow has the support, on record, of the Scottish Chambers of Commerce, plus Inverness, Ayrshire, Glasgow, and Edinburgh chambers of commerce. Clearly, it has the backing of the GMB and Unite the Union. As the Transport Secretary said, it has the support of the Regional and Business Airports Group; it has the explicit support of Glasgow, Highlands and Islands and Aberdeen airports; and it has the support of Airlines UK.
As we will hear over the course of tonight, there are concerns about the proposals. Some environmentalists will never support air expansion of any kind. Clearly, there are local objections to do with the impact and disruption; I appreciate that MPs should represent the concerns of their constituents and I can understand why some are against the proposal.
However, given the general support that I have outlined, the Secretary of State should be able to pull this off, and for me this is where he has come up short. He has come up short on addressing the concerns of the Transport Committee, but where he has really come up short is on the protection of slots for domestic flights. My predecessor, my hon. Friend the Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry), previously raised the issue of protection of slots and the need for point-to-point public service obligations. The Transport Committee highlighted the fact that further clarity was required on national slots in paragraph 3.34 of the national policy statement. This is where the UK Government are, frankly, all over the place. Paragraph 3.34 states:
“The Government recognises that air routes are in the first instance a commercial decision for airlines and are not in the gift of the airport operator.”
The Government then state that they will hold Heathrow airport to account. That is clearly a contradiction: they are saying that it is the airlines that hold the slots, but that they will hold Heathrow airport to account.
I do not understand what difference it makes where the flights are going to. If we want trade and business with the rest of the world, why does that matter? We want that business—why does not the hon. Gentleman?
I thank the hon. Gentleman for his intervention. Frankly, as a Scottish MP and an SNP spokesperson on transport, it matters greatly to me where the flights are going. I want these flights, the connectivity for Scotland and the protection that we have not yet heard about from the UK Government.
The hon. Gentleman is making a very powerful speech. I have a simple question. Does he want the extra 100 flights that an expanded Heathrow will provide for Scotland? Can he give me a simple yes or no?
I want that, but I also want guarantees of protection. I will come on to that point, so, again, I ask the hon. Gentleman to show a bit of patience and wait.
I am very grateful to the hon. Gentleman for giving way. Can he confirm whether Heathrow airport has this afternoon agreed with the SNP and the Scottish Government that it is prepared to set aside 200, not 100, slots at Heathrow airport for connections to Scotland? If that is the case, why are they continuing to object to Heathrow’s plans?
Obviously, 200 slots are preferable to 100 slots. The thing is that only the UK Government can provide the protections. Heathrow has always said that it is willing to work with the Scottish Government, and with the UK Government, but it is only the UK Government who have the powers to provide the guarantees and protection.
My hon. Friend is making some very important points; what he raises here is a real issue. Let us put this into context. One hundred flights means 50 arrivals a week—seven flights a day. We are talking about Edinburgh, Glasgow, Dundee, Aberdeen, Prestwick and Inverness. It is simply not enough. Is it not the case that Prestwick has held out its hand to the Scottish Government, but it is the UK Government who have not stood up to protect Scotland’s interests? That is the point.
I will elaborate on my right hon. Friend’s point later in my speech.
The Government have still not responded properly to recommendation 10 from the Select Committee on Transport, regarding the 15% of new slots for domestic connections. They have fallen short on clarity. Paragraph 1.60 of the Government’s response to the recommendations states:
“The Government expects the majority of these domestic routes from a potentially expanded Heathrow to be commercially viable”.
Expecting the majority of routes to be commercially viable falls a long way short of cast-iron guarantees that the UK Government are going to protect those slots. There is a concession that
“the Government will take action where appropriate to secure routes through the use of Public Service Obligations (PSOs)”,
but, crucially, the Government do not explain how these will be managed. We are advised in paragraph 1.61 that:
“The Government’s expectations on domestic connectivity will be detailed as part of the Aviation Strategy Green Paper”,
which is not expected until the second half of 2018. Having to wait months after tonight’s binding vote in order to get clarity on these points is simply not good enough.
As someone who represents one of the regions of the United Kingdom, I understand that the hon. Gentleman wants certainty and clarity about this issue. But does he accept that an expansion, by its very nature, will necessitate more domestic passengers and, hence, more routes will open up locally?
That is not the case. It all comes back to the protection of slots. Airlines operate the slots. If no protections are put in place, the whole concern is that domestic slots will be lost to more lucrative international flights. That is why I am asking for this protection. I would have thought that the hon. Gentleman, who represents airports in Northern Ireland, would be grateful that I am looking for this guarantee from the Government.
But by necessity more passengers will be required to travel through Heathrow. Those passengers are going to come from Northern Ireland, Scotland and the north of England. That is a fact. Some 700,000 passengers annually already travel from Northern Ireland. That number will expand, and it will also expand for Scotland.
But that is not guaranteed, which is why we need these protections.
Over the years, domestic connectivity and the number of domestic slots have been cut massively because of the way in which the airlines have operated the existing slots. If we are going to get these increases, we need protections in place.
I have a great deal of respect for the hon. Gentleman, speaking up for Scotland as he does. But does he not agree that whether there are 100 or 200 extra flights a week—whatever the figure is—an expanded Heathrow would provide more flights than Scotland currently gets?
It comes back to the anticipation that 15% of new slots will be available for domestic connectivity. Quite frankly, every regional airport wants a cut of that action. The hon. Gentleman’s local airport, Northern Ireland, Scotland and airports in the north-east of England all want some of that 15%. At the moment, we do not know how that 15% is going to be broken down, or what is going to be provided.
The Transport Committee’s analysis showed that Scotland will actually lose 2,700 international flights per annum as a result of Heathrow expansion, and that flights will be fewer than they otherwise would have been.
I do not recognise the exact figure mentioned by the right hon. Lady, but I do accept that Department for Transport figures suggest that direct connections and international connectivity will not increase as much if the Heathrow expansion goes ahead. Yet Scottish airports themselves do not express that concern and they do back the expansion of Heathrow, so I also have to trust their judgment on the matter.
Is the hon. Gentleman saying that the Scottish National party’s view is that because it is not sure how big Scotland’s bit of the cake is going to be, there should be no cake?
I have also spoken up for other regional airports, because I would expect them to want the same protections that I am asking for when it comes to Scottish airports. It is up to the Secretary of State to give these guarantees and satisfy us on these points.
Paragraph 1.62 of the Government’s response to the Transport Committee’s recommendations explains that the Crown dependencies are also included in the 15% of additional slots. How will the figure actually break down between the Crown dependencies and all the various regional airports?
There has been a dereliction of duty by the Secretary of State. The language being used is “up to 15%”. The harsh reality is that Scotland has lost slots in recent years, and we have lost connectivity. The Secretary of State should guarantee connectivity, but he has failed to do so time and again.
I think that my right hon. Friend was making a rhetorical intervention.
I raised my concerns about slot protection when the Secretary of State came to the Dispatch Box and made his statement about the NPS. He will be aware that I followed up in writing to seek clarity and assurances, including on the fact that Scotland could have several PSOs if necessary. I asked him how many slots would be protected and what the reality of “up to 15%” would be. I also asked him whether there would be an absolute minimum that the UK Government would seek agreement on, and what percentage of the 15% would be for new routes rather than just additional slots. Just prior to that, a few days after giving the statement, the Secretary offered me a meeting. I stated I was happy to meet him and work with him, but I was instead left with last-minute phone calls with the aviation Minister, who is an unelected peer—not accountable to this place and not even able to come to the Dispatch Box tonight.
Following that there was a letter and DFT public announcements, which were pre-planned anyway. I acknowledge that there has been welcome movement in terms of airport-to-airport PSOs, and the Government have set out the fact that Scotland can have more than one PSO. But I repeat: there is no clarity or assurances regarding how these can or will be implemented. We do not even know whether any money has been set aside or whether there has been any cost analysis of the Government saying that they will provide these PSOs.
If the Heathrow expansion goes ahead and the airlines do forgo their domestic slots for more lucrative international slots—in, say, eight years’ time—what actual obligation is there on a UK Government at that moment in time to act and bring in PSOs? I would suggest that there is none. We cannot bind a future Government, especially given how the provision is set out just now, and that is a critical concern.
The hon. Gentleman says that he seeks clarity and certainty on what extra slots Scotland will get if the Heathrow expansion goes ahead. I put it to him that the clarity has come from the Secretary of State—that, without Heathrow expansion, there will be no extra slots for Scotland. Will the hon. Gentleman support the expansion this evening?
Well, it is a daft point because it assumes that, if Heathrow goes ahead, the slots will somehow magically be there for Scotland. That is not the point, and that is why we are asking for these guarantees.
I really appreciate the hon. Gentleman giving way again because it is absolutely essential that the House understands that four out of eight of the domestic routes that are already available go to Scotland. Scotland already stands strong in this area. It does not need protection measures. Indeed, British Airways has already expanded its routes to Inverness.
The fact is that Scotland has lost a lot of domestic connectivity over the last few years, so the hon. Gentleman is not quite right. It is good that he sees Scotland as strong, but we want to be stronger and we want further connections.
As we have already heard, the Department for Transport said that there would be 100 extra flights a week to Scotland. Although it is now saying that there could be 200 flights coming from Heathrow, it is up to the Government to provide the protections. Let us take the figure of 100 that has been quoted. If, say, Dundee and Prestwick get the new suggested slots, even just a twice-daily service from each of those airports would equate to well over half that figure of 100 flights. When we take the rest and spread it over the rest of Scotland’s airports, it is not actually a great deal of increased connectivity. That is why this falls short of our expectations.
Heathrow airport has made it abundantly clear that it is willing to work with the UK Government on the matter, and acknowledges that it is a Government function to deliver that protection. As has been touched on already, Heathrow has signed a memorandum of understanding with the Scottish Government. The airport has been very open and communicative with both me and my predecessor in the SNP’s transport spokesperson role. I believe that it really wants to deliver on its commitments to Scotland, including the preconstruction logistics hub, for which I appreciate it is currently doing an ongoing assessment. I hope that that assessment concludes that Prestwick airport is successful, because that would be really good for my local area. There is also a stated minimum value of £300 million construction and supply chain contracts for Scotland, and a minimum peak construction job creation of 100 jobs.
Heathrow committed to a £10 passenger fee discount to Scottish airports, and, to be fair, it has since increased that reduction to £15 per passenger. It committed £1.5 million to advertising through a Scotland-specific marketing fund, and it has delivered on that, with only £250,000 outstanding, which it has pledged to use to promote the new V&A museum in Dundee. It has also confirmed that it is now working with VisitScotland to provide a takeover of a gate room to promote Scotland for a five-year period, equating to some £300,000. Cynics will say that it is bound to do these things to keep Scottish MPs and the Scottish Government onside. However, it seems to me that it has delivered to date, and over-delivered in some aspects, so I can only take it at face value.
In the bigger picture, 16,000 jobs are predicted to be generated in Scotland through an expanded Heathrow. These are certainly benefits that I want to see delivered.
Does the hon. Gentleman agree with his namesake, Keith Brown, the Cabinet Secretary for the Economy in the Scottish Parliament, who supports the expansion of Heathrow and spoke about it very strongly in 2016? Does he not agree that the jobs he mentions simply will not come if there is not an expansion?
As I said, I have spoken in favour of expansion before. The Scottish Government have also spoken in favour of it—that is why they have signed a memorandum of understanding. We are just looking for protections and deliverability.
Some people have asked, why Heathrow and not further expansion in Scotland? We have to acknowledge the reality that Heathrow has been the hub airport for the UK for 40 years, and there is not the critical mass in Scotland for getting such a hub-status airport. That is why the Scottish airports have supported the principle of Heathrow expansion.
Will the hon. Gentleman give way?
No, I need to make progress.
Some of my other concerns relate to the UK Government’s responses to the Transport Committee. The Secretary of State said that he had acted on 24 out of 25 of its recommendations, but that painted a more proactive representation than what the Government have actually taken on board. Their responses have not been robust enough. I am sure that the Chair of the Committee will cover these aspects later on. My key concerns include the response to recommendation 12, which is about airport charges being held flat in real terms. This would address some of the wider concerns about the cost of the expansion being passed on directly to the airlines. The UK Government have said that expansion cannot come at any cost, yet they are passing the buck to the Civil Aviation Authority.
Recommendation 25 is about policy and ways to maximise other runway capacity across the UK. That is not a make-or-break condition, but it would have been nice if the UK Government had got this policy in place at the same time as they are bringing this proposal forward. On the air quality issues in the Committee’s recommendations 3 to 6, the Government need to confirm that Heathrow’s triple lock is sufficient and that development consent will be robust enough to address those issues. More importantly, it needs to be confirmed that the expansion of Heathrow will not compromise obligations on climate change.
I have outlined my concerns—
I was going to fast-forward there, but I think the House wants to hear me speak for a wee bit longer, so I am quite happy to do that.
This is a project where people tailor their arguments to try and bring other people onside. In a recent Westminster Hall debate, I had Tory rebels urging me not to vote with nasty Tories, and Tory and Labour MPs expressing their concerns about what Heathrow expansion would mean for an independent Scotland. I heard concern from the right hon. Member for Putney (Justine Greening) that this investment will take away infrastructure investment in Scotland. Frankly, these are all false arguments.
The announcement of a multi-billion-pound infrastructure project should be good news. The predicted job growth and opportunities for Scotland should be good news, and certainly businesses see the merit in the expansion proposals. As I said, I want the jobs to come to Scotland, I want a logistics hub at Prestwick, and I want the additional regional airport connectivity—but crucially, I want these aspects guaranteed, and that is where the UK Government have fallen short. I have been supportive to date. I certainly will not vote against these proposals, because of what I hope the opportunities are for Scotland, but given that the UK Government cannot and will not provide these guarantees, I also cannot, unfortunately, vote with the Government.
I thank my hon. Friend for his contribution. If I had heard all of it, I would be able to respond in some detail.
The Minister has referenced some of the points that I have made. What he did not do, however, was to guarantee to protect the slots for Scottish airports.
After this much discussion and documentation, the idea that the Scottish National party can hide behind the lack of a formal guarantee is frankly an insult to the process and to this House. To abstain, as the Scottish National party is doing, and not to reach a decision, is to say that it will give up the at least 100 additional flights per week. It will mean no more slots and no more economic growth for Scotland from this proposal. Frankly, that is a risible position.
(6 years, 5 months ago)
Commons ChamberObviously, I echo the sentiments expressed by the two Front-Bench spokespersons about the accident yesterday and the workers who helped to keep people safe.
Another week, and here we are having another transport debate or statement. I am a little unsure of the Labour party’s tactics in trying to shift the Transport Secretary from his position, because it seems to me that the longer he stays in post, the more incompetent he shows the UK Government to be—and they, unlike the franchises, have real competition. He finished by saying there was a lot of political point scoring and that we should all work together, but it would be best if he took on board some of the criticisms. Any criticisms made—or even valid observations—are dismissed out of hand as political point scoring, when they are not, especially given that the franchise system is on its knees.
We have seen time and again that the Secretary of State is blinkered and ideological. He is a hardcore Brexiteer with the mantra, “Everything will be just fine. We just need to get on with it”, as illustrated by his proclamation that there will be no border checks post-Brexit and that lorries, just like on the US-Canada border, will not need to be stopped and checked. I have pointed out several times that that is wrong, but I have never had an admission of wrongdoing from the Secretary of State, and that is part of the problem.
The Secretary of State’s ideological zeal is at its most visible when it comes to the railways—private sector equals good, nationalisation or public ownership equals bad and inefficient—yet, under the current set-up, state-owned railway companies from all over the world run franchises in the UK. The UK franchise system, based on the premise that public ownership is bad, is subsidising railways across the world. Chiltern Railways, CrossCountry, Northern, and Wales and Borders are run by Arriva, which is owned by Deutsche Bahn. Essex Thameside is run by Trenitalia UK, which is owned by the Italian state railway. Greater Anglia and ScotRail are run by Abellio, which is owned by NedRailways, and Abellio is also involved with the West Midlands franchise, along with the East Japan Railway Company. Southeastern, Thameslink, Southern and Great Northern are run by Govia, which includes Keolis, which is owned by the French state rail operator, SNCF. Keolis is also involved in TransPennine Express and will be part of the re-let Welsh franchise later this year.
Italian, French, German, Dutch, Hong Kong and Japanese state rail companies are running franchises in the UK. When I weigh this up, I start to wonder whether the UK franchising system should be classed as foreign aid—because that is what it seems like. Money is flowing out of the UK to these other countries. It illustrates perfectly the pig-headed attitude of the Secretary of State and Tory Back Benchers.
Is the hon. Gentleman aware that many British firms operate railways in other countries? For example, National Express has just won a contract to run some railways in Germany.
That misses the point. The German state railway company can bid for its own work in Germany. The whole point is that the UK Government refuse point blank to allow UK companies to bid for the franchises.
As I have said time and again, when it comes to the merits of privatisation and franchising, the Transport Secretary wrongly connects cause and effect. He has always played up the increase in investment in the railways since privatisation, along with the subsequent increase in passenger numbers, as if all that had happened magically just because of the sell-off and break-up of British Rail.
We know that British Rail had been struggling and had poor rolling stock, and that much of it was outdated, but that was because of the constraints imposed on British Rail by the UK Government, who did not allow any borrowing or investment. Once the Major Government had sold it off, the franchising allowed private borrowing to be levered in—borrowing that could be recovered only through fares or a Government subsidy. The fact that the current Secretary still does not acknowledge that shows a lack of understanding or an ideological blind spot. The fact is that the original sell-off was the private finance initiative on tracks, and that remains the case to this day.
Another myth, which we have already heard today, is that somehow the taxpayer pays no money to the franchises. According to the recent library briefing on rail franchises, all but two received Government subsidies in 2016-17, amounting to £2,330 million in that year alone.
A further indication of the failure of the franchise system to which the Secretary of State still adheres is the fact that by 2020, 12 of 16 franchise allocations will be direct awards. Where are the innovation and competition when three quarters of the franchises are direct awards to the companies themselves?
The Secretary of State’s blinkered attitude also permeates the failed East Coast franchise. He more or less shrugs his shoulders and says “Stuff happens: some franchises fail.” The reality is that private investors and companies either make money or they walk away. It has been argued there has not been a £2 billion bail-out of Virgin Trains East Coast, but the fact is that VTEC has walked away with a £2 billion IOU to the Government in its back pocket. It has not had to pay the money back, so if the Government do not want to call that a bail-out, it must be called a write-off. The Government have not tried to chase up the money, and it has not reached the stage of being a bad debt. The Government have simply let VTEC off straight away. I only wish that the Department for Work and Pensions and Her Majesty’s Revenue and Customs would do the same when things go wrong for my constituents. Those bodies are relentless, so why should VTEC walk away owing £2 billion?
I agree with what the hon. Gentleman is saying. Does he agree with me that franchisees that walk away from a franchise should be banned from bidding for a significant period?
Yes, I do. The Secretary of State says that there was a parent company guarantee of £165 million for VTEC, which is a lot of money, but if the parent company is picking up other money in franchises, including the direct award of the west coast main line, it is not actually losing that money. It should be penalised properly, and I agree with the hon. Gentleman that it should not be able to bid for other franchises. Its ability to bid for the east coast main line partnership has still not been ruled out.
The Secretary of State also justifies the predicament of the parent company by saying that it “got its sums wrong.” I remind him again that it is his Department that got its sums wrong when it carried out its due diligence and assessment. The Government are lucky that one of the other franchise bidders is not seeking redress from them, because they clearly got it wrong, and got the whole process wrong.
Will the hon. Gentleman bear in mind that private rail operators in Britain are paying money into the Exchequer, whereas in France, 20% of the running costs come from the Government? When it comes to sums, which other areas of public spending would he have cut in order to pay for the things that he is talking about?
I do not think that the hon. Gentleman listened to the point that I made about the subsidy that is paid to the rail franchise companies. It is a circular process, which makes it more complicated and more expensive, because of the number of cost consultants involved, taking money from one direction and paying money in another direction, and then blaming Network Rail. All that money can then circulate, and there are still net subsidies for those companies, although they pay track rental fees.
As I have said before, Richard Branson came out fighting. He blamed Network Rail for the overruns, but we have heard that Network Rail was not really at fault. The Secretary of State should be more robust in attacking VTEC. Letting it walk away owing that money undermines his position.
In previous incarnations, the east coast main line service has proved that public ownership can work. When it was last in public ownership, it paid the track rental fees and made a nominal profit, which went straight to the taxpayer. That model can work, and it should be used again in future. The Secretary of State ought to consider that.
Also on this Transport Secretary’s watch has been the Southern rail shambles. He did not do enough to step in. When I highlighted some of Southern’s failings on another occasion, he intervened and said that he was not the Transport Secretary who had been responsible for the allocation of the franchise. That completely missed the point: he was simply saying, “It’s not my fault, guv.”
Will the hon. Gentleman give way?
Does the hon. Gentleman not agree that the situation on Southern and GTR was so long-running that the Secretary of State should step in now, and that there should be not a review but an immediate revocation of the franchise, as happened with Connect Southeastern under Labour?
I agree that the failed franchise should be addressed and immediate action taken. The Secretary of State has been too slow, and the ongoing review will take too long and kick everything into the long grass.
When Abellio took over the ScotRail franchise, there were teething problems, which made national news. Opposition politicians in Scotland were not slow in calling for the head of Humza Yusaf, the Transport Minister. However, he stepped in and agreed a detailed action plan with the Abellio-ScotRail franchise, which really turned things around. It was direct intervention that made the difference.
More than 50% of the delays in Scotland are down to Network Rail, which the Secretary of State stubbornly refuses to devolve to Scotland. Does my hon. Friend agree that if he did that, it could make a big difference to rail travel in Scotland immediately?
It could make a big difference to rail travel in Scotland, and it could also make a Treasury saving. The fact that the Secretary of State continues to refuse to do that defies logic.
We have also seen the railcard fiasco. The railcard has been put on hold because, apparently, no one wants to pay for it. Who would have thought the industry would not want to pay for a gimmick that the Government introduced in the Budget, when they said, “The industry will pay for it”? That is just another failure on the part of this Government.
GTR’s chief executive, Charles Horton, has resigned, Mark Carne and Network Rail’s chief financial officer are forgoing their bonuses, and we have seen plenty of other Government resignations. It is time for the Transport Secretary to consider his position, rather than awaiting the outcome of a review.
Commenting on delays in the Waverley station refurbishment, Ruth Davidson, the Scottish Tory leader, said:
“This cannot continue for much longer, and it’s not good enough for ministers to just shrug their shoulders and say they’re doing their best.”
Given the delays were the fault of Network Rail, will the Secretary of State do what the Scottish Tory leader thinks is correct, and what we think he should do?
(6 years, 6 months ago)
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I thank my right hon. Friend for her question. We have seen many brilliant examples of crowbarring local and national issues into debates, and I salute her ingenuity in so doing. She rightly makes the point that this proposition has been left unexecuted for far too long, although it has greatly improved as a result. It will bring an almost £75 billion boost to the UK economy, provide better connections to growing world markets and allow better support for regional airports and the regions of the country. She is right that we need to press ahead.
I am rather naive. When the Secretary of State for Transport came to the Dispatch Box to present the decision on Heathrow expansion, I thought he was moving on from the rail shambles and on to firm ground—a subject he had a firm grip on—but clearly that is not quite the case. We are hearing mixed messages about liabilities and a rather flippant, “We don’t need to worry. It is a normal commercial recovery mechanism that Heathrow has put in.” The Government have to be clear about this if they are to carry the vote of the House and take this forward, and time is limited.
The Secretary of State said that the Government had acted on 24 out of the 25 recommendations of the Transport Committee’s report on the NPS, but that claim seems to be unravelling as we go through the Government’s response. Again, it seems the Government are not on top of this. There has been much debate about the cost of surface access and who pays for that. The Government are going to have to be very clear, because they keep saying there are no liabilities there and it will all be private-funded. They need to start to understand the mechanisms for the payment of surface access upgrades; will that be a private finance initiative through fare recovery? What will it be, and what are the associated contingent liabilities? Quite often, the Government end up giving infrastructure guarantees, so will they be in place for surface access upgrades?
In terms of the 15% of new slots—
Order. I am afraid the hon. Gentleman is way over time. If he has a single sentence to add, I am happy to hear it, but after that we do need to proceed.
I will need to understand the protection of the 15% of new slots for the new domestic routes before the vote takes place; that is important.
The latter point is so far outside the scope of this UQ that I hope the hon. Gentleman will not mind if I address it in the Committee session this afternoon.
On the issues the hon. Gentleman raises that are germane to the question, let me start by thanking the Scottish National party for its support for this project, which it rightly concludes will be of great value to Scotland—and that is agreed across all parties. There are no mixed messages here and there is nothing fluffy about the legal position on which the Government have—as it appears, uniquely—taken advice. I remind the hon. Gentleman that the statement of principles was published in 2016 and has been available for almost two years, so if there is fluffiness it is not on the Government side of this House.
We have taken very seriously the 24 out of 25 Select Committee recommendations that the hon. Gentleman raised. We are grateful to the Select Committee for its detailed and painstaking work and have acted on many of its recommendations; we have left one to be a point of further discussion, and dispute potentially, but we have been overwhelmingly positive in many ways towards the Select Committee response. That should be reflected on the record, and we are grateful for the support it has given to this project.
(6 years, 6 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
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It is a pleasure to serve under your chairmanship, Mr Hanson. I rise to speak with a little trepidation—I have never heard so many MPs call for what the SNP will say; it was absolutely curious. It is good that for once they will all be listening, rather than staring at their iPads.
While we have been here, a constituent sent me a letter that had been sent to The Scotsman, the end of which reads:
“Scottish airports not pursuing a more independent approach will fail to break a dependency that could be vital for an independent nation. Surely a better approach to accepting Heathrow offering breadcrumbs is to build vibrant international capacity…By using modern point-to-point aircraft this will create air passenger-friendly economic activity independently of the mores of the south-east and the outdated hub-and-spoke.”
Does he not regard that as a call to arms?
I agree with the call for independence, and it was great to hear the right hon. Member for Putney (Justine Greening) giving advice on what an independent Scotland would look like. However, even if Scotland becomes independent, we can still have the same connectivity, as that is separate from being independent. We want to be an independent country with connectivity all over the world. However, the truth of the matter is that, with regard to the expansion of Scottish airports, many of the chief executives of Scottish airports I have spoken to want Heathrow expansion. Truth be told, they would accept Gatwick expansion, but they all say that they need that extra connectivity into the main London airport. That is the reality; it is not a factor of independence. In an ideal world we would have a major international hub in Scotland, but we do not have the critical mass.
People either support Heathrow expansion, support it with a “but”, or outright oppose it. Those who oppose it are more likely to be here on a Thursday afternoon to make their contributions heard. It has been a really good debate. Every Member, no matter their viewpoint, has complimented the excellent work done by the Transport Committee. It has published an excellent report, and I must pay tribute to the Committee’s Chair for the thorough way in which she presented it.
I am pleased that a briefing was provided for MPs. Unfortunately, I was unable to attend, but the briefing notes were excellent, giving a concise summary of some of the issues that still need to be teased out. It will be good to hear the Minister’s response. Like others, I pay tribute to the work the Clerks have done. Although I have not been involved, I know how the Clerks work, and it is great to see the report and information presented concisely.
The Committee Chair highlighted fairly that this issue is not just about connectivity; it is also about the individual people who will be affected. I am conscious that I am a Scottish MP who will be asked to vote on a decision that affects people who are not my constituents. I accept that and understand that some local people affected might be a wee bit angry about that, but unfortunately the reality of a major infrastructure project is that some people will be affected. We must look at the pros and cons, and these people should be adequately compensated and looked after. That is the flipside of a dynamic—other MPs are now advising me as a SNP and Scottish MP on what view I should take—so it works both ways.
The Committee Chair also importantly outlined the risks of inaction—decisions not taken and no further expansion of a hub airport—in terms of the potential loss of business to other European airports. She and others highlighted the risk of the project not being delivered in Heathrow’s timescale by 2026. A pertinent point is that it could be built by 2026 and operating at full capacity by 2028—it seems counter-intuitive that it could be at full capacity just two years after its projected opening. That suggests that it is not a forward-thinking business plan. It would be good to hear comments on that.
The Chair and other Members highlighted surface access issues, particularly road traffic, the required air quality updates and the fact that there are openings for legal challenges. Again, the Minister’s response must cover that in detail. The Chair concluded by saying that the Committee’s support is conditional. It clearly has yet to meet to discuss further the Government’s response, but it is a fair comment that the report must surely have helped other Members decide how they will vote when the time comes to make this big decision. I again pay tribute to the Committee for the work it has done.
I congratulate the hon. Member for North Thanet (Sir Roger Gale) on his 35 years in Parliament. He highlighted the success of and threats from competing airports. He touched on the personal aspect of understanding how Heathrow can affect constituents but still laid out his support for the plan. I commend him for shoehorning in a connection to Manston airport and for suggesting that it could be used as a stopgap for freight transport.
We then heard from the hon. Member for Brentford and Isleworth (Ruth Cadbury), who has been campaigning against Heathrow expansion for a long time. I respect her view. She correctly highlighted flightpath concerns, and I agree that there should be more transparency on flightpaths so that people fully understand the implications. She also highlighted issues about other traffic movements.
The right hon. Member for Putney has been dogged on this issue. I commend her for securing an urgent question today. She highlighted what she sees as the financial considerations and risk to the Government in having to underwrite the project. We need further clarity. I am well aware that the Government say that there is no financial risk involved because it will be fully by the private sector, but we need absolute clarity on that. She touched on massive concerns for Scotland relating to infrastructure and growth. I welcome her conversion to Scottish independence. I appreciate what she said about Transport for London’s commitments to surface expansion potentially drawing away further investment, but the reality is that Transport for London has a different borrowing model, so that will not directly affect infrastructure spend in Scotland. That is a bit of a red herring, to be honest.
The hon. Member for Plymouth, Sutton and Devonport (Luke Pollard), having analysed this and being a member of the Transport Committee, was another “Yes, but.” He highlighted the real importance of western rail access not just for Heathrow, but for wider western connectivity. It seems that that project should have gone ahead sooner rather than later.
The hon. Member for Windsor (Adam Afriyie) came at this from the national interest approach. He made the argument that it is not in the national interests, and as a Tory he argued about the financial implications. Interestingly—this is almost a conspiracy theory—he believes that Heathrow is not going to develop and that this is just a mechanism to control competition. Depending on what happens with the vote and how we go forward, we will see whether those chickens come home to roost, but I suggest that Heathrow seems to have spent a lot of money and effort so far, and to do so for a scheme it does not intend to progress with would be quite surprising.
In terms of the financial interest and the money that has been spent so far, I would say that it would be a pretty wise investment to spend several tens of millions if it looked as though Heathrow could increase its landing fees, increase its take and stop the competition growing for a period of 10, 20 or 30 years. That is a wise investment on its part.
I take the hon. Gentleman’s point that there is a financial benefit to spending the money if it eliminates the competition, but clearly if Heathrow stymies routes and development going forward, it opens up some of the other opportunities that at the moment we are saying do not exist. I am not sure it would be in its long-term interests to be able to do that.
The hon. Member for Hammersmith (Andy Slaughter) said that this debate has cheered him up. I presume that is because quite a few people spoke in opposition—I am not sure that I will cheer him up as I continue. He highlighted concerns about flightpath and cost. As a flippant aside, I must commend him for the coherent speech he has made from the scribbles he makes on his paper. I do not know how he manages to do that, and I commend him for it.
We all have to thank Hansard for making us seem more coherent.
The hon. Member for Keighley (John Grogan) gave us a Yorkshire perspective. To cheer him up, one of my grandparents was from Yorkshire, so I am one quarter Yorkshire—maybe I am an honorary Yorkshireman. He suggested that there should be a three-line Labour Whip against this. It will be interesting to see what the shadow Minister says about that recommendation; maybe he can give us some guidance in his summing-up speech. The hon. Member for Keighley was another one giving advice to the other SNP MPs and me on what is in Scotland’s interests. I take his point about the possible risk to direct, point-to-point, long-haul connections and some of the threats predicted for regional airports. I also have concerns and would want some protection. I want to hear what the Minister says about that.
The final Back-Bench speech was from the hon. Member for Ealing Central and Acton (Dr Huq), who again highlighted the environmental and social impacts and how traffic can affect air quality. I was trying to follow her logic. It seems that she wants the Tories to U-turn on their decision not to overturn the previous Labour decision. That seems to highlight how long this has been kicking around, how much prevarication there has been and, if nothing else, why we need to get to a decision.
I think we should leave Brexit for another day, because I am running out of time as it is.
I will give a few thoughts on some of the Transport Committee’s key recommendations and the Government’s response—I have had the chance to skim through it quickly, since time has been limited. Recommendation 1 asks for the national policy statement to be redrafted to meet the Committee’s recommendations and the concerns it has highlighted. The Government response suggests that they have done that, but looking at the Government responses on an individual basis, it seems that they have paid platitudes to the recommendations rather than wholeheartedly taking them on board and changing the national policy statement. I would like to hear what the Minister has to say about that, since it will clearly be critical in bringing other hon. Members on board with the decision they want.
Recommendations 3 to 6 are about the Secretary of State granting development consent only on condition of satisfaction on air quality, health and safety, and environmental grounds. What will be the transparency and accountability aspects of these considerations if the vote is in favour? Why do the Government not just publish the air quality monetisation modelling? Stating that new, greener planes will help with air quality and environmental concerns is a bit of a cop-out as well. We need a wee bit more clarity on that.
Recommendations 7 to 9 relate to the surface access upgrades. Other hon. Members have raised concerns about those and we need transparency on them. We need to be sure that the upgrades will be privately financed and not underwritten by the Government, and that there are clear business models there that can be developed. There seems to be some division over whether some of the proposed rail schemes will tackle the expansion of Heathrow or are based only on existing usage. The Government need to be clear on that, and we need clear information on the M25.
Recommendation 10, from my perspective, is critical for MPs who represent regional airports. How will the 15% of slots for domestic routes be protected? The Secretary of State suggested in his statement the other day that a legal mechanism could be developed, possibly in a public service obligation, but how will that protect the number of airports that have been promised opportunities? How will the PSO work? Other hon. Members have raised the point that it might not be applicable to some of the airports that are looking for those connections. We need absolute clarity on that before the vote. If my SNP colleagues and I are voting on the basis of increased connectivity to the Heathrow international hub, we need assurances that those slots will remain in place and that Scotland will get the connectivity it has been promised.
Recommendation 11 is about affordability and deliverability. The Government response states that HAL
“appears in principle to be able to privately finance”
this, and paragraph 1.70 states:
“The Government will continue to monitor the financeability and affordability of the scheme as the design develops and as the economic regulatory framework for expansion matures.”
I ask the Minister to explain that to me, as a layman.
On recommendation 12, which relates to charges, the Government response states:
“The Government agrees that expansion cannot come at any cost.”
Again, what are the Government going to do to ensure that future costs do not rise exponentially, and how will they control and monitor that? I accept that there is a role for the CAA, but that still potentially leaves the door open for increased charges justified by x, y or z, where the CAA says that is completely justified.
Recommendation 25 is all about the policy consultation and ways to maximise other runway capacity across the UK. That is crucial, and the Government seem to have ignored it, apart from saying that they recognise the recommendation. I want to know what the Government will do about UK-wide airport strategy and maximising the other airports across the UK.
It is quite clear that to date the SNP, including myself, has spoken in support of Heathrow expansion. For the benefit of hon. Members, the reason is that airports in Scotland have told us that they want that connectivity. The airlines support it. There is a possibility of 16,000 jobs. The chambers of commerce in Scotland support it, as do all Scottish airports except Edinburgh, which has the Gatwick connection. That is the case at the moment. It is a “Yes, but” position, and the Government must take due cognisance of those concerns and the work of the Transport Committee.
Our expectation is that it will be up to 15%, but we wait to see how far that 15% can be fully utilised. We have made it perfectly clear that, although this is not a matter for Government as such, we expect to see many regional airports come forward with plans, as many have already said they would. The hon. Member for Kilmarnock and Loudoun (Alan Brown) has already given evidence of the support of Scottish airports.
The Minister will be aware that the Secretary of State said in his statement on Tuesday that the Government will find a legal mechanism for the protection of slots. How is that going to happen? That seemed to be a rather more vague commitment.
That is right. We have taken legal advice on it. We believe that public service obligations are a mechanism that can be used to give legal support for that position. I hope the hon. Gentleman will take a degree of comfort from that.
I want to turn to some of the many points that were raised. I have only about two and a half minutes remaining, so I will be as quick as I can. I apologise if I miss some, and colleagues are welcome to write to me with these concerns. One suggestion made was that the scheme fails to monetise all the costs. The advice I have had is that we have monetised the air quality impact, which was identified as an omission by the Transport Committee and included in the updated appraisal report. On the question of whether there is a potentially costly risk from a delay in hitting full capacity, our judgment is that this is not specifically geared towards the delivery of a scheme in 2026 exactly, which is immediately being filled up thereafter. Sensitivity testing on this suggests that there might be limited impacts, even if there were some form of delay, which we do not expect.
Let me go through these other points, many of which I have already touched on. As I mentioned, we agree that the conversation on mitigation must focus on the communities most affected. I absolutely agree with my hon. Friend the Member for North Thanet (Sir Roger Gale), who highlighted the importance of freight. He also made a powerful case, as many regional airports have done, for wider connectivity within the UK itself. I would not be surprised if I saw a bid coming forward from Manston, in a different incarnation from its current posture. I thank him for that.
We have touched on the question of bans versus mitigation. There is a suggestion that flight paths are somehow locked in place with no ability to vary. To be clear, as we move to a world of digital airspace, the capacity to vary flight paths greatly increases. That will take a number of years and that is why it has to be developed in context with the decision about the flight paths and therefore the noise implications of that, but it is important to bear that in mind.
I am grateful to the Committee. I appreciate that, in addition to the due documents that were laid before Parliament, a whole host of other materials have been subsequently published. I am grateful to hon. Members for looking at that. If they have further comments on that material, we would be happy to hear them.
(6 years, 6 months ago)
Commons ChamberMy right hon. Friend has made a crucial point. That is, obviously, a matter of great importance to the airlines. They do not want fares to rise, and nor do we. This should be a development that leads to more choice for passengers, as well as more competition and, as a result, lower fares. One of the benefits of expanding the network will be for the United Kingdom, because we need more operators within the UK, and we may be able to achieve better competition on routes into Heathrow.
I have statutory powers, which I have already used on two occasions, to enable the Civil Aviation Authority to monitor the costs of the project to ensure that they are driven down. I renewed those powers recently, and I will continue to do so whenever necessary.
I thank the Secretary of State for giving me early sight of his statement.
This has been another polarising issue, and aspects of the UK Government’s approach in the past and the delaying tactics have not helped matters. However, I welcome the progress that is being made, and the fact that a vote appears to be imminent. The option of Heathrow expansion was recommended by the Airports Commission. It was also backed by the Transport Committee, as we have heard, and I pay tribute to its work in scrutinising the national policy statement.
To be fair, Heathrow has engaged fully with the Scottish Government, and has signed a memorandum of understanding in relation to commitments to Scotland. It refers to a construction logistics hub, and, for selfish constituency reasons, I should like that to be based at Prestwick airport. There is also a commitment to a £10 million route development fund, and a commitment to promoting Scotland in the future. I must be honest: for me, supporting expansion at Heathrow from a Scottish perspective was initially counter-intuitive. However, all but one of the Scottish airport operators support it. So do the various Scottish chambers of commerce, because they recognise the business benefits that it can bring to Scotland, including up to 16,000 new jobs. That helped to sway me, and the Scottish Government have reiterated their support.
Let me ask the Secretary of State some questions about his statement. He spoke of benefits for nations and regions, and an expected
“15% of slots on a new runway to facilitate domestic connections across the UK”.
However, he has still not explained how he will ensure that that happens. Will conditions be imposed, and will he consider Scotland’s needs? How will he ensure that what is proposed for Heathrow will increase passenger numbers at Scottish airports? He said that he had recommissioned the CAA to work with the industry to keep charges close to their current levels, but he did not make it clear how there could be certainty that future charges would be kept under control. What will happen if Heathrow cannot commit itself to the longer period that the Secretary of State has just thrown into the mix, and what will he do to ensure that there is more transparency on new flight paths? Finally, given the UK Government’s failures to date and their defeats in court in relation to air quality, what will be done to ensure that air quality impact assessments are robust and that the correct control measures are introduced?
I am grateful to the hon. Gentleman, the Scottish Government and the Scottish National party for their support. I think it important for us to ensure that Scotland is well served by the expansion of Heathrow. I think the hon. Gentleman understands, given the support that has come from the Scottish regional airports and the Scottish business community, that by providing more strategic routes for the United Kingdom from Heathrow we will provide links to important new developing markets around the world.
The hon. Gentleman asked about the protection of slots. We are considering what is the best mechanism. It seems that the public service obligation mechanism may be the best, but I want the most robust legal mechanism to operate by the time we reach the development consent order process, in order to protect the allocation of slots to regional connections in the United Kingdom. I do not want, and will not accept, circumstances in which slots somehow disappear and are allocated to a long-haul route rather than a UK route. This must be a project that benefits the whole United Kingdom. As for passenger numbers, our forecasts show that virtually all regional airports will continue to grow, and I expect the hon. Gentleman to see growth at Scottish airports as well as on routes to and from Heathrow.
The hon. Gentleman asked about the setting of charges. The CAA sets the charges, and it has absolute regulatory power to set them at the level that is appropriate for the airport. It has the teeth to deliver that at the moment. He asked about the respite issue. Let me make it clear that the night flight ban is an absolute requirement. We would reconsider that only if both the airport and the local communities agreed that something different should be done. The local communities would have to come back to us, with representatives of the airport, and say, “We would like to do something slightly different.” From the Government’s point of view, the ban is a non-negotiable element.
As for the hon. Gentleman’s final question, given that there are opponents of the scheme, I think it highly likely that it will be challenged in the courts. We have done exhaustive work, and there is a huge amount of material for the House to consider. We are following a statutory process, and only if there is a supportive vote in the House of Commons can the project go ahead. I hope that that is enough to set the project on the right path.
(6 years, 6 months ago)
Commons ChamberI completely agree with my hon. Friend; I think that the railways are going to have to change significantly as a result of what has happened. However, I say to those who are saying that we should sack the franchisees that simply sacking the people who are working today will not solve the problem, because I do not have some other group of people down the corridor who are able to take over. We have to make sure that everyone has all the necessary support from across the industry to deliver solutions for passengers and get back to stability as quickly as possible. I absolutely accept what my hon. Friend says.
Another week, another rail shambles. When will the Secretary of State admit that the rail franchise system is broken and do something to fix it properly? It was really disappointing to hear that travellers who were forced to get rail replacement buses at short notice were sometimes turned away because the buses were full or simply did not turn up. That is even more ironic considering that Arriva also operates overlapping bus groups. That just highlights the farce that is going on at the moment.
We know that late-running Network Rail projects reduced the time available for train operators to plan the new schedules, but what assessment has the Secretary of State made of his Department’s culpability in this, with regard to Network Rail? Despite assurances that all was well, it is now clear that there was no possibility of the timetables being capable of being operated in full from day one. Why did no one in the train operating companies, Network Rail or the Department for Transport ask for a postponement of the new timetable roll-out?
The Secretary of State has said that he will take the strongest enforcement action against GTR if it has broken its franchise agreement. Will that action be stronger than that taken against Virgin Trains East Coast, which has been allowed to walk away owing the Department for Transport billions of pounds?
What is the Secretary of State’s exact timeframe for resolving these timetable issues? He has mentioned putting in additional resources. What additional resources will be put in from his Department? What is he doing to ensure that the driver shortage is not met by poaching drivers from other franchises, which could have an impact on services elsewhere? On the question of compensation, what will he do to ensure that the rail industry does not recover the costs of compensation from other fare-paying passengers?
The Secretary of State continually highlights Network Rail failings, but when will he accept that he has responsibility and culpability for Network Rail and fall on his own sword? An apology is not good enough.
As I have said, the key issue now is to sort out the problems. The hon. Gentleman asked about failings in my Department and elsewhere. I have asked Stephen Glaister to look at everything that has happened and to report back publicly so that we can know exactly what has gone wrong and particularly so that we can ensure that it cannot happen again. The hon. Gentleman asked about resources. My Department is deploying extra people on this, as is the industry. For example, GTR has borrowed drivers from freight operators to try to deal with some of the shortages on its rosters. On the question of compensation costs, my view is that they should be paid by the people who are responsible.
(6 years, 6 months ago)
Commons ChamberLet us be clear: the situation with Northern has been unacceptable. As I said yesterday, I will this morning chair a conference call with the Northern leaders. This is the most devolved franchise. It is a partnership between Northern leaders and the Department for Transport, but it is not solely led by the Department. None the less, it is no less important to me that we get this situation resolved. I am very clear that this problem has arisen for two prime reasons: the problems with electrification Network Rail is carrying out on the line through Bolton and the failure of Network Rail to deliver a finalised timetable in time. When the hon. Gentleman talks about the need to strip the franchise and renationalise, he is shooting at the wrong target. This is a Network Rail failure and it must not happen again.
We know that since rail privatisation the Secretary of State thinks magic money appears from nowhere with no risk to the taxpayer, but that is not the case. When it comes to infrastructure, the UK relied on £35 billion of loans from the European Investment Bank between 2011 and 2015. Where will that money come from for rail infrastructure post Brexit?
We are a substantial net contributor to the European Union, so the money given to the UK from different European funds actually originates in the UK. We will be able to spend our money in the way we see fit. We are of course spending record amounts of money on rail infrastructure to develop what needs to be a better, expanded and more resilient rail network.
The Prime Minister has been absolutely clear that this country is committed to frictionless borders. Teesport is doing a great job; I saw some of the firms that operate at the port only recently. That is one reason why I have announced the study into the potential reopening of the Skipton to Colne railway line, because one thing we lack for ports such as Teesport and, indeed, Liverpool, is better freight connections across the Pennines. Every time I talk to the port operators, that is top of their list.
One of the Brexit myths is taking control of borders, yet the Secretary of State continues to say that there will be no further checks on transport at ports. Is that just because he does not have a clue about how the Government can put in place a system that allows checks to be made but does not cause carnage on the roads round about the ports?
No, I am afraid it is because the hon. Gentleman does not understand how ports operate today. It is not necessary to stop every lorry at a border—indeed, every lorry is not stopped at the border—to have a free flow of trade. Countries inside the European Union and countries that have no connection with the European Union manage to operate a free flow through ports and across borders, and that is what we will do after we leave.
(6 years, 6 months ago)
Commons ChamberIt is a pleasure to follow the Transport Secretary. He made a speech that will certainly appeal to his Back Benchers, but I would not say it was a forensic demolition of the argument for public ownership of the east coast main line. When the Transport Secretary throws out phrases like “Labour just hate the private sector” and “they would turn our economy into a Venezuelan economy” that seems like smoke and mirrors to me, rather than forensic analysis.
This censure motion relates directly to the handling of the east coast main line franchise. I am happy to support it on that basis, but there has been a further catalogue of errors on the Transport Secretary’s watch. I want to touch on some of that as well, as it builds up to where are today.
It is clear from the opening speeches that there are opposing views across the Chamber on the merits of privatisation and franchising, but one thing that I am confident about is that, as the hon. Member for Middlesbrough (Andy McDonald) touched on, the Transport Secretary wrongly connects cause and effect when it comes to privatisation of the railways. He continually plays up the increased investment in the railways since privatisation and the subsequent increase in passenger numbers as if it all just magically happened when British Rail was broken up and sold off. It can be argued that British Rail was struggling—it did have some poor rolling stock and it was outdated—but that is only half the picture because the Government would not allow British Rail to borrow to invest in the railways. The Transport Secretary says British Rail did not have access to capital, but that was because the Government would not allow it to access capital.
There was another restriction on the railways at the time. Substantial investment was needed following the 1988 Clapham rail crash, and further rolling stock upgrades and the channel tunnel were bleeding money elsewhere that British Rail was not allowed to access. Once John Major’s Government sold off British Rail, they allowed private borrowing, so it is correct that additional money was levered in, but that money was levered in on the basis that it could be recovered only through fares or through Government subsidy. If the Transport Secretary cannot acknowledge that money can be borrowed only because it is underpinned by the taxpayer, either it shows a real lack of understanding of where the money comes from, or it shows his ideological blind spot.
That attitude permeates all the way through the failed east coast franchise. The Transport Secretary has previously more or less shrugged his shoulders in the Chamber and said, “Well, you know what? Stuff happens. Some franchises fail, and that is the way the private world operates. Some fail and we move on, but do you know what? Others will come along and they will be successful, so why worry?”
Does the hon. Gentleman agree that one of the flaws in the east coast franchise, and one of the reasons it failed, is that it was so badly set up in the first place, with the backloading of payments? Does he agree that perhaps we should take this opportunity, as we go into a different arrangement, to look at how we set up franchises to make sure we do not doom them to failure?
I agree with the hon. Lady. I will address a couple of those points because I agree wholeheartedly with what she says about the tender process and the backloading.
The reality is that private investors and companies either make money out of a franchise or they seem to be allowed to walk away. The Transport Secretary stated at the Dispatch Box that what is now happening is not a bail-out of VTEC. But if VTEC owes £2 billion in track premiums and is allowed to walk away without paying anything, that must by definition be a £2 billion bail-out. That is so simple and it cannot be argued against.
Surely the definition of a bail-out is when the Government actually have to pay money to the company, which of course they are not doing. If anything, the criticism of the Government is that they have ripped off the private sector and got more money from it than it could deliver.
Yes, there we see the ideological blind spot yet again. If somebody owes me £2 billion, I would be writing off £2 billion of debt if I said, “Forget about it. It’s okay.” Let us say it is technically not a bail-out, but the Government are writing off £2 billion of debt that that company owes the taxpayer. The company is walking away and getting rid of a £2 billion liability, and I do not understand why Conservative Members are trying to argue different.
The Transport Secretary has previously justified the predicament by saying the franchisee got its sums wrong. That should not be an excuse, but, as I have repeatedly said, and the shadow Minister also touched on this, it means the Department for Transport also got its sums wrong when it thought the tender was suitable for award. It is not just the franchisee that got its sums wrong; the Department for Transport got its sums wrong, too.
The Government failed in their due diligence. What about the supposed parent company guarantees? Those guarantees clearly have not been worth much to the taxpayer. We do not know what the runner-up bids looked like, but do those runners up have a case against the Government, given they clearly failed in their due diligence by awarding this franchise, from which VTEC gets to walk away?
As the hon. Member for Edinburgh West (Christine Jardine) said, we know VTEC backloaded the track premiums. If another consortium’s bid did not backload the track premiums, the taxpayer might already have made more money, but we do not know whether there was such a bid because it is all clouded in commercial confidentiality. It also shows, yet again, that no lessons were learned from the failed 2012 west coast franchise. The Transport Secretary had a duty to ensure that lessons were learned and properly applied in awarding the east coast franchise, and it is clear that not enough analysis was undertaken.
When the story broke, although VTEC got the sums wrong, Richard Branson blamed some of the reduced numbers on Network Rail. Given the Transport Secretary also has responsibility for Network Rail, what is the truth in that statement? If it is true that Network Rail was the problem, VTEC should be compensated because that is the way the franchise model works. If it is not true, why has the Transport Secretary not come out fighting to disprove Richard Branson’s comments, instead of casually defending VTEC at the Dispatch Box? It is more smoke and mirrors from VTEC.
At the Transport Committee, the chief executive of Stagecoach used excuses such as that the Scottish referendum and Brexit hit the numbers. Considering that our referendum was in 2014, before the franchise was awarded, that is clearly patent nonsense.
Despite all that, the Transport Secretary’s new wheeze to prevent a blame game between the track owner and the franchise holder is a combined partnership model. That might improve things, but at this stage we do not know what the set-up will look like or how it will interact with other services outwith the franchise. Given the repeated Back-Bench Tory support for open access on the line, there will clearly be further complications for such a partnership to address. It is absolutely guaranteed that there will be further issues down the line.
The Public Accounts Committee found last month that the passenger growth forecast by Virgin and Stagecoach was wildly wrong. In the light of what the hon. Gentleman is saying, does that prove the rail franchising model is broken?
It certainly proves the current model is broken. If a franchisee gets its figures wildly wrong, it goes back to the due diligence by the Department for Transport, which clearly accepted the wildly wrong and inflated figures. Action is needed to remedy that.
Even if we accept the Government’s partnership model, the Transport Secretary has made it clear he believes that the private sector always operates better than the public sector. Surely then, at the very least, he should allow the public sector to bid for franchises: if he is that confident the private sector will win, he does not have to worry about the public sector bidding. Let the public sector bid and let us see which is the most competitive.
Is it not the case that what we are seeing here is not a free market situation at all? In a free market situation, a failing franchisee would lose money, too. The current situation is tantamount to going into a casino, putting on a bet, losing and being given back the stake. Surely risk should be shared with the private sector in future arrangements so it takes a hit, as well as the taxpayer.
I completely agree. Rail franchise holders have been able to walk away. As has been said, the profits are privatised and the losses are underpinned by the taxpayer. That is not a proper free market model because there is absolutely no punitive action against franchise holders when they fail.
If that were the case, why did the share prices of the companies involved collapse?
Funnily enough, Stagecoach’s share price increased when the Transport Secretary gave a statement from the Dispatch Box in February. Share prices go up and down, which is to do with the overall performance of these companies, and they are very big companies. The whole point of these big companies bidding and providing parent company guarantees is that it is supposed to offset the risk, rather than leaving the risk to the taxpayer.
On the question of state-owned companies or public sector organisations running franchises, the Transport Secretary’s logic completely falls apart when we consider that four foreign state-owned rail companies already operate franchises in the UK. Those companies are making a profit here for reinvestment in their domestic set-up, which is proof that state-run railways can work efficiently.
The previous east coast main line services are further proof that public ownership can work. When the previous franchise failed and was taken into public sector operation, it returned £1 billion in track fees to the Treasury and turned an operating profit of £42 million. So, as has been asked before, why move away from that successful model to one where VTEC can come in with inflated sums and then get to walk away? It is clearly not right.
The southern rail franchise shambles also happened on the Transport Secretary’s watch. The main conclusion of the NAO’s report is that it could not be demonstrated that the franchise has delivered value for money. At the time, the operator blamed Network Rail and the unions, and the Government blamed the unions, completely ignoring the Transport Secretary’s role in refusing to engage with them. The fact is that 60% of the cancellations were due to Govia Thameslink Railway and only 40% were caused by Network Rail. The UK Government set up the model supposedly to deal with the complex infrastructure upgrades, but the Government took all the revenue risks, so the strikes actually cost the taxpayer, because the loss of revenue is underwritten. The Government also awarded the franchise based on an even higher roll-out of driver-only operation, which is what caused some of the disputes.
This is not just a problem with southern. Southern is a failing franchise, but northern seems to be on the verge of failing, too, with complaints from passengers across the north of England about services regularly not being provided.
I agree, and I think that the Government are now looking at northern because it is yet another failing franchise—another sign that the current system is just not fit for purpose.
I go back to the problems with the southern franchise. The NAO report makes it clear that the Department for Transport’s responsibility was large, especially for access to the network and timetabling pressures. Such errors led to an additional £60 million being allocated from the Treasury, following a loss in revenue and other costs. Again, all that happened on this Transport Secretary’s watch.
I do not want to deflect attention in any way, but may I remind the hon. Gentleman that that franchise was not set up while I was Secretary of State?
I am happy to accept that, but all the current problems are happening under the Secretary of State’s watch. He has refused to get involved in trying to resolve the disputes to move things forward. I accept the fact about when it was set up, but he could have been stronger in his leadership and his interventions instead of letting things rumble on.
Another issue that I have with the Secretary of State’s overall competence is his dogmatic refusal to devolve Network Rail to Scotland. The organisation is clearly too big, and it has a bad reputation for delays and overspend, so why would he not want to take the opportunity to devolve it, allowing the Scottish Government to take full responsibility? It has been estimated that a unified management structure could save up to £100 million a year, and that alone should appeal to a Tory Secretary of State, so I just do not understand his dogmatic refusal to engage.
Then there is his lack of engagement with the Scottish Government about the funding for control period 6 in Scotland. The allocation is way less than his regulator recommended for track maintenance and growth in Scotland’s railways. Why is he being so obstinate in refusing to meet the Scottish Government or to consider what might be a fair funding settlement? We also had the recent railcard fiasco. The autumn Budget included the announcement of a discounted railcard for 26 to 30-year-olds, except the Treasury did not put any money into the scheme. In answer to a written question, I was told that the rail industry would pay for it itself, but that was done without discussions with the industry so, lo and behold, the scheme is in chaos. Who would have thought it? Again, that happened under this Secretary of State’s watch.
The Transport Secretary’s slash-and-burn attitude to rail electrification projects and the short-sighted selection of hybrid engines will lead to continued diesel pollution. He has also so far refused to fund or consider meaningful upgrades to the west coast main line north of Crewe. The way that high-speed rail will be implemented means that journeys between Scotland and Crewe will take longer on high-speed trains than they take currently with Virgin Trains, so we need further investment north of Crewe.
I will deviate from rail slightly before I finish. The Transport Secretary’s incompetence is summed up by his proclamations that there will be no border checks post Brexit. The suggestion is that lorries will not be stopped—just like on the US-Canada border—but that just shows that he does not have a grasp of his brief. That is why I am more than happy to support the motion.
Just give me two seconds. When we look at the money that was earned, some £1 billion was returned in three years compared with £1 billion in five years under nationalisation.
The hon. Gentleman is talking about the problems caused by Network Rail. Will he remind the House who was in charge of Network Rail for the Government?
I am delighted that the hon. Gentleman has made that point. Indeed, that is the problem with a nationalised company. Many people have said, “Oh, it’s the Secretary of State’s responsibility in a nationalised company, ” but that is not how it works—it is not how it has ever worked. On the one hand, people are saying that the Secretary of State should take complete control of the railways, and on the other that he should get out. People who are running a nationalised operation do not share the sense of urgency of those in the private sector. There are litanies of delayed or missing projects under Network Rail.
I always travel by train when I can, and with respect to colleagues from the north-east of England, I am going to lay claim in this debate to be Virgin Trains East Coast’s best customer. I have made 32 return journeys from Edinburgh to London in the past 12 months. That is the equivalent of circumnavigating the globe in a Virgin train and it gives me quite an insight into the service.
I pay tribute to the staff of that service who have served me over these years—the people who drive the trains, who check the tickets, who serve the drinks, who provide the information—and also the many hundreds of staff who work in the depots, cleaning and engineering these magnificent machines. I think it is a shame, the way in which they have been treated, and that they are constantly being told that their boss and their uniform is changing, rather than being valued for the service that they provide.
We have heard a lot about ideology in this debate. The Government seem convinced that their opponents are motivated only by ideological dogma. Anyone reviewing the text of this debate surely can only conclude that the reverse is the truth—that in fact, it is the Government who are so blinkered by ideological dogma in favour of privatisation that they refuse even to consider the possibility of a contemporary public sector alternative. That seems to me very regrettable, because there are many positive reasons why the public sector alternative should be considered. I just want to name two.
The first reason is that it would allow integration of the management of the service and remove the ridiculous separation between the train and the track that is responsible for many of the problems that we are facing in the operation. What better way to ensure that the track serves the demands of the train service than to place it under the management of the same people who manage the train service? The idea of separating a vehicle from what it is travelling on might make sense with a road network, where there are lots of different avenues to travel, but the train only has one track on which to get from A to B, and the management of those things ought to be integrated. That could happen, in a public sector organisation.
Clearly, I agree with the points that my hon. Friend is making. Does this not further reinforce the argument that, in Scotland, Network Rail should be devolved to Scotland, to allow the Scottish Government to have that integration he is talking about?
Indeed, and I will come to that later.
The second big positive of having a public sector operator is that it will allow for much greater investment—we would not have to have investment that was contingent on franchise payments and on levels of use; we could just take a serious decision, as a grown-up country, and say, “We need to rapidly and significantly invest more in our rail network if we are to bring it up to scratch and achieve the type of global service that our competitors can achieve.”
I represent Edinburgh East, including the world-famous Waverley station. I admit there have been some improvements over the past few years—we have seen the market share of the rail journey from Edinburgh to London rise to a peak of 37%—but that still leaves nearly two thirds of the people who make the journey from Edinburgh to London taking the plane. Surely that is a ridiculous situation, and we must take urgent action.
The industry will tell us that, when we get the journey time down to four hours, that is a tipping point and that will take market share to around 40% but, to get the train as the majority means of transport between Scotland and London, we will have to reduce the journey time to three hours, and that can only happen with massive investment in a high-speed network and it can only happen with a new fleet of trains. So I want the Minister to confirm that these changes that are taking place will not in any way affect the delivery in December of the roll-out of the new Azuma fleet on the east coast line and that he will engage seriously and purposefully with the Scottish Government in discussing the investment required for HST in the future.
The Scottish Government, because of devolution, have some responsibility for the rail network in Scotland, yet as with so many other things it is working in a straitjacket that is set by this place. We have repeatedly said, over a long period, that the franchise for rail services in Scotland should be run by a public sector operator. We tried, in a debate on the last Scotland Bill, to get the whole regime transferred to Holyrood, but could not find support from any other parties in this Chamber. There is now a golden opportunity, however, for the Department for Transport to take seriously the Scottish Government’s request. Now we have the ability to put a public sector operator into the tender process, there is an opportunity in Scotland—if they will not do it here—to use this to experiment to see how a contemporary public sector operation takes place. The Thatcher Government began the attacks on British Rail when, as a service, it was still reeling from the attacks of Beeching and the massive line closures. We do not know what a public sector operator would be like now if privatisation had not happened. Maybe—just maybe—we might have had trains as good as people have in France and Germany.
This is a motion of censure, and I find it surprising that the Secretary of State has absented himself from the debate. This is not a normal motion on a matter of policy; it is a motion that questions the capability and commitment of an individual. At the very least, he ought to have the decency and respect to be in attendance in this Chamber to hear the case against him.
(6 years, 6 months ago)
Public Bill CommitteesIt is a pleasure to serve under your chairmanship, Mr Robertson. I will be brief. I want to put on record a tribute to the work done by the hon. Member for Bristol South. When somebody gets elected and spends a lot of time in this place, they want to be able to say that they have made a difference. After three years of campaigning, the hon. Lady has been able to include in this Bill clauses that could make the difference, and obviously in the future they might lead to further regulations and a further enhancement of road safety, which would be for the benefit of us all. I thank her for her work, and commend the Minister and Government for an unusual approach—they actually worked with the hon. Lady to get to this point and to further improve the legislation.
My one “but” would be about the tow bar amendments. We have heard some fantastic examples of the risk and the potential weak point in the system—how tow bars are fitted and the subsequent maintenance work required. Hopefully the Minister will reflect on what he has heard, particularly the statistic that there is a 91% inspection fail rate, which should cause alarm bells to ring.
I congratulate both the hon. Lady and the Minister, but the Government must still consider those other aspects.
I am grateful to all colleagues for the very thoughtful and intelligent contributions they have made. I will pick up on each of the issues they have raised.
Perhaps I can start with the hon. Member for Bristol South who, in many ways, is the mother of these amendments. Her point about the importance of affecting driver behaviour and driver education has also been made separately and forcibly to me by the hon. Members for Rotherham and for York Central—it is very important and well understood. In due course, there may well be a case for extending our road safety communications more widely. As the hon. Member for Bristol South will know, we are effective in many ways on road safety education, but it is important that we cover all aspects, so I am grateful to her for that comment.
The hon. Lady asked whether the trailer safety report will fall away. The answer is that it will not. That is because I hope and suspect that the Bill will be enacted—with the support of the Opposition, it certainly will be—and even if it is not enacted, the Government have made a commitment to produce a report according to the standards we have outlined.
Let me pick up on a couple of points made by the hon. Member for Rotherham. Of course, it is an offence to use a trailer on the road that is not roadworthy or that is in an unfit condition. The hon. Lady is absolutely right to highlight, as several Members have, the 91% figure found on the assessment. Without getting too philosophical—the House will know my background in this area—there is a difference between data and evidence, and small numbers of data. We need a more comprehensive view. When we have one, we can legislate if we need to with certainty. If we need to regulate, we can do so with all the comfort and assurance that we would need.