East Midlands Rail Franchise

Andrew Jones Excerpts

Thursday 11th April 2019 Commons Chamber

[Mr Clive Betts (Sheffield South East) (Lab)]

(Urgent Question): To ask the Parliamentary Under-Secretary of State for Transport if he will make a statement on why Stagecoach has been disqualified from bidding for the east midlands rail franchise.

[The Parliamentary Under-Secretary of State for Transport (Andrew Jones)]

On Wednesday 10 April, it was announced that Abellio is the successful bidder to operate the east midlands rail franchise and will be responsible for delivering new trains, smart ticketing and more frequent services for passengers. Passengers in the east midlands are to get new trains, more peak-time services, reduced journey times and over £17 million of station improvements as Abellio takes over the franchise from August 2019.

Abellio will invest £600 million in trains and stations between August 2019 and 2027, while the Government continue with their £1.5 billion upgrade to the midland main line—the biggest upgrade to the line since it was completed in 1870. This is part of the Government’s £48 billion investment to modernise our railways over the next five years.

As we informed the House in yesterday’s written statement, Abellio was awarded the contract “following rigorous competition.” It was a fair, open competition and Abellio provided the best bid, in which it demonstrated that it will not only meet but exceed the Department’s specifications.

Stagecoach chose to put in a non-compliant bid, which resulted in its disqualification, in line with the terms of the published invitation to tender. That said, Stagecoach has played an important role in our railways, and we hope it will continue to do so after the conclusion of the rail review. However, it is entirely for Stagecoach and its bidding partners to explain why it decided to ignore established rules by rejecting the commercial terms on offer.

[Mr Betts]

Thank you, Mr Speaker, for allowing this urgent question.

The Minister did not really answer the question. Abellio has been awarded the contract as the best bidder, but the bid of the existing franchisee was not even allowed. Generally, Stagecoach has performed reasonably well on the contract, so will he explain when the requirement was first introduced that a bidder has to cover pension costs? Is this the first franchise for which the requirement has been introduced? Why was it applied?

How much, in total, are the Government trying to cover in costs through the franchising process? When were the bidders notified of the requirement—was it at the beginning of the process?—and why was no one else told about it? Are any other companies refusing to cover such costs? Are any other franchises affected? If they are, what will be the effect on competition within the franchising system? What would happen to future competitions and to the costs that the Government seek to cover if all companies refused to cover those costs?

Finally, on the bid that has been accepted, do these hybrid trains actually exist now? When will they be introduced? What will the Government do if existing rolling stock is not disability-compliant in 2020? The Government have promised improvements to the timetable, but can we be assured that, at the beginning of the new franchise, journey times will be at least as good, and at least as short, as they were before the botched timetable changes of last year?

[Andrew Jones]

There are a lot of questions there. First, Stagecoach has acknowledged to the Department that it had bid non-compliantly. We have received offers from other bidders in all competitions that are fully compliant in providing the required pension arrangements for railway workers so, to answer the hon. Gentleman’s question on whether this means the bid process is failing and others are refusing, clearly they are not because we have a compliant bid that won in good form.

Stagecoach is an experienced bidder and fully aware of the franchise competition rules, so it is regrettable that it submitted a non-compliant bid that breached the established rules. In doing so, Stagecoach is responsible for its own disqualification. Bidders were invited to bid on the basis of a pension deficit recovery mechanism. They knew that at the very start of the process[Official Report, 25 April 2019, Vol. 658, c. 8MC.]. Stagecoach did not accept it and made some amendments as it submitted the bid. On what would happen if all companies refuse, clearly, by definition, they are not all refusing, so the question does not apply.

We will see an entirely new fleet of trains—a full replacement fleet—come into service. Inter-city services will receive new bi-mode trains, and regional services will receive new diesel trains. The express fleet, which is the Corby-Bedford-London service, will receive new electric trains that offer significantly enhanced environmental improvements.

What is interesting in this franchise is that we will see the first trial of a hydrogen-powered train. [Hon. Members: “When?”] In terms of timing, we will see the new trains coming into service in a phased way. We hope to see the first trains coming in next year, and so on over the next three years.

The bidding process was conducted in a fair and consistent way, applying the rules of engagement equally to all bidders. We have provided feedback to those who have not been successful. The reasons are always commercially confidential. Losing bidders may publicise them if they wish, but we will not do that because they are commercially confidential. The key thing that we are seeing here is a franchise awarded in the typical way that franchises are awarded in our rail industry, delivering passenger benefits.

[Sir Patrick McLoughlin (Derbyshire Dales) (Con)]

I am rather surprised at the late withdrawal, or barring, of Stagecoach from this franchise. It seems to have come right at the end, so it is odd that my hon. Friend is saying that somehow Stagecoach knew it was non-compliant, because if the Department knew so early that it was non-compliant, one would have thought it would have been told quite some time ago. These franchise bids are not cheap to make and they are very expensive for the company.

Will my hon. Friend be more specific, as usually is the case, about where the new trains are coming from? If they are to be in operation from next year, presumably an order is about to be made very soon. Where will that order come from? I congratulate the Government on widening state ownership of the railways, albeit that of other states.

[Andrew Jones]

There were a number of points in my right hon. Friend’s question. As soon as the decision was taken on this franchise, all the bidders were notified. That is entirely standard. He has a great track record of delivering improvements across our rail network. Bidders were notified, of course, across all competitions, so that they did not incur extra costs. These things are expensive to operate, so this was awarded in a fair and consistent way.

Obviously, the contract to deliver the rolling stock will be between the successful bidder and its rolling stock provider, but we expect to see significant improvement in the rolling stock, and the feedback I have had from passengers along the line and from colleagues who serve along the line is that they are looking forward to seeing the benefits that those will bring.

[Andy McDonald (Middlesbrough) (Lab)]

Clearly, the franchise system is in complete disarray. It seems that Stagecoach boss Martin Griffiths and Richard Branson have been taken completely by surprise by the announcement of the decision to disqualify Stagecoach from the discredited franchise process, seemingly for failing to provide sufficient commitments in terms of the pension scheme, bidders having been asked to bear full long-term funding risks on relevant sections of the railways pension scheme. Can the Minister inform the House about the pension commitments made by Abellio that warranted the award of the east midlands franchise and the extent to which any such commitments were distinct and more acceptable to the Department for Transport?

Is not this really payback for the east coast collapse, two years ago? The question on the airwaves today was whether this decision would propel Richard Branson back into his favourite hobby of suing Her Majesty’s Government over the awarding of contracts, which has served him so profitably over the years. What preparations has the Minister’s Department made in readiness for potential costly litigation flowing from this decision?

Why did the Department change the pension rules in the middle of the bids? On south eastern, that was only made clear after two rebids. Is not that moving the goalposts?

The real issue is that this Government, by sleight of hand, are trying to reduce their support for the railways pension scheme. They are trying to pass these costs on to the private sector. That is why both Stagecoach and Arriva defaulted on their bids for the east midlands franchise. The rail industry has a plan to reduce the deficits in its pension schemes, yet the Government have ignored that and are attempting to bulldoze through changes without consultation. That is reckless. It will concern rail workers and worsen the rail service for passengers. What discussions were there with the trade unions? Moreover, given that Keith Williams has been instructed to conduct a root-and-branch review of the operation of our railway, why has such a lengthy franchise been awarded before the Williams review reports later this year?

The announcement is accompanied by the decision to extend the franchise award on south eastern to Govia. How can it be right for that company to be given the nod to continue when it has delivered such a miserable service and completely failed its passengers? Is that not further reward for failure? Surely even this beleaguered Government can see what is staring them in the face: the franchise system is in total collapse. They need to respond to long-suffering passengers and do what the next Labour Government will do: bring track and train back together in state ownership—this state.

[Andrew Jones]

The hon. Gentleman asked a number of questions. Is the franchising system in disarray? Of course it is not. If we look at what has happened to our railways over the past 25 years, we see unprecedented passenger growth. We now have more people travelling on our railways and more services run on our railways, and at a greater level of safety than ever before. The franchising system has been a key ingredient in that delivery. Do I think the franchising system is over? Absolutely not. I think we need to look at how it will evolve in future, and that is what the Williams review is doing. Franchising has helped get the system from A to B, reversing years of decline. We now need to see what system we will have as we take it through to the next stage.

Stagecoach knew that its bid was non-compliant—it acknowledged that to the Department. The hon. Gentleman asked about litigation. The Government are completely confident that the bid was evaluated and decided fairly. It is business as usual in the awarding of a franchise on our rail network. He asked whether the decision on the east coast main line was payback. That question is absolute nonsense. This is an entirely separate matter. The bid was won on merit by the strongest bidder. It offered the best bid, with new trains and more services, including more Sunday services and more early and late services. It was won on merit. If a company chooses to bid non-compliantly, that is its fault.

With regard to passing the costs on to the private sector, that is also nonsense, because these are private sector pension schemes. The rail operating companies have a section of the rail pension scheme. Their trustees will meet the Pensions Regulator to discuss that. Is this a question of the Government seeking to remove responsibility? No, this is a private matter and the trustees will be dealing with that in their own way.

The hon. Gentleman asked whether I have met the trade unions. I have met the National Union of Rail, Maritime and Transport Workers and ASLEF, and on this occasion I have written to them to highlight the award today.

[Mr Mark Francois (Rayleigh and Wickford) (Con)]

Williams said in his recent speech that the franchise system in effect is already broken, and today’s announcement proves it. Abellio is hopeless. The Minister will recall an Adjournment debate he had with a number of MPs a couple of months ago—the business of the House had collapsed early so lots of us piled in. I think six or seven Members from Essex, whose constituents suffer that company every day, got up and told him, one after the other, how utterly useless that company is. We have been waiting for years for new trains from Abellio, yet still they do not turn up. It is Dutch-Japanese owned and it does not give a monkey’s about the passengers. I am sorry, but this is a massive mistake and yet another Grayling cock-up.

[Andrew Jones]

I do not agree with anything my right hon. Friend has just said. That Adjournment debate was very enjoyable; we had many discussions because there were so many interventions. The core of the debate, which was secured by my hon. Friend the Member for Colchester (Will Quince), was about the introduction of the Delay Repay 15 offer for customers, which went live on 1 April and has been widely welcomed by passengers on the line. Indeed, on 1 April, I went to stations in Norfolk, Suffolk and Essex, and I met passengers, the Transport Salaried Staffs Association and the rail operating company, and the arrival of DR15 was widely welcomed. The key thing that people were looking for was the consistent delivery of a timetable, so the requirement to pay any form of compensation would not be necessary. That is, of course, at the heart of the Government’s CP6—control period 6—investment. We are investing £48 billion over the next five years to modernise and upgrade our railway to make sure that we can deliver the network and services that passengers rightly expect. Is Abellio a failing provider? No.

[Mr Francois]

Ask my constituents.

[Andrew Jones]

I have looked at the measures in terms of performance data and customer satisfaction. I recognise that we have had frustrations across our rail network over a number of years and that we had very poor performance last May, but I do not accept that Abellio is a failing performer. It operates 6,000 trains in the UK each day. The service is improving in all areas—[Interruption.] My right hon. Friend the Member for Rayleigh and Wickford (Mr Francois) is doing an awful lot of chuntering using fairly robust language, as he normally does—or as he has taken to doing recently. The point remains that we are delivering a network that is operating at the best that it has operated for a significant number of years. It has turned around decades of under-investment and underperformance. We are now seeing a network carrying more people with a higher level of safety than at any point in British history and this franchise award takes that further.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

Yet again, we have not had a statement from the Department for Transport. We have to rely on media announcements and urgent questions to hold the Department to account, but when the Minister comes to the Dispatch Box, he says, “Oh, that’s a lot of questions.” That is because we are not getting information. Virgin Trains East Coast walked away from the east coast main line owing £2 billion. Many people called for Stagecoach not to be allowed to bid for other franchises, but the Department for Transport dug its heels in, saying that it could bid for franchises and then sat on the non-compliant bid for a long time. Why has the Department adopted such contradictory positions? Martin Griffiths, the Stagecoach chief executive, said:

“We are extremely concerned both at the DfT’s decision and its timing. The Department has had full knowledge of these bids for a lengthy period”.

Again, what discussions were held on pensions and how long has the Department sat on the non-compliant bid before making a decision?

What will happen with the west coast main line franchise, as we are told by the media that Virgin Trains will disappear in a year? Virgin previously won the 2012 franchise after a legal challenge, so what are the risks of further challenges from Virgin after this decision today, and will the Minister provide any legal advice that the Department has taken?

Abellio in Scotland pays the living wage. Is it part of this franchise award that all employees get the living wage? How robust are the pension protections in this Abellio franchise and how will pensions be protected in other franchises? Clearly, this is now a major issue.

Many of us have called for the Transport Secretary to resign. Now we have the irony of the Transport Secretary threatening the Prime Minister to resign over her position on Europe. Will he follow through on his threat, or will the Government take action and make the Secretary of State resign and shake up the Department?

[Andrew Jones]

Well, much of that was absolutely ridiculous—just complete nonsense. Let us turn back the page and remind ourselves about the idea that the Government have somehow been dragged to the Dispatch Box. I remind the hon. Gentleman that this was a contract that included a market sensitive element. There are strict procedures when a market-sensitive contract is awarded by any Government—and that includes the Scottish Government. The announcement is made first of all to the City. There was a written ministerial statement at 7 o’clock yesterday morning and by 9 o’clock there was a “Dear Colleague” letter sent out to all those Members who were affected, so what he says is simply wrong.

I have to say I cannot remember exactly the full range of questions the hon. Gentleman asked, but the key thing is that this contract has been awarded in a fair and consistent way. It is delivering significant passenger benefits, including a complete renewal of the fleet. I have already highlighted that the inter-city, regional and express services will all receive new rolling stock—new trains—and that there will be more services, more seats at peak and improved environmental performance. The benefits are clearly very significant. We should welcome them, not the opposite.

I think the hon. Gentleman got carried away with his own rhetoric when he asked whether the Secretary of State should resign. Of course not—what a load of complete nonsense. This franchise was awarded in a fair and consistent way, and it will deliver for passengers. We should celebrate that, not the opposite.

[Several hon. Members rose—]

[David Tredinnick (Bosworth) (Con)]

Thank you, Mr Speaker. As part of his response to the new franchisee, which will be broadly welcomed in my constituency if it really does produce new trains, better capacity and improved stations—from listening to my right hon. Friend the Member for Rayleigh and Wickford (Mr Francois), I am not so sure about that—will my hon. Friend look at connectivity between Leicester and Nuneaton via Hinckley? There are also big concerns about the west coast main line.

[Andrew Jones]

I will of course consider my hon. Friend’s point, but we have produced an interactive map so anybody can log on and see where the benefits will fall right across the franchise area. That map is available at maps.dft.gov.uk and may provide the detail he seeks.

[Lilian Greenwood (Nottingham South) (Lab)]

I hope the Minister recognises that, although East Midlands Trains staff are covered by TUPE thanks to our membership of the EU, this will be a really uncertain time for them—especially those who have worked for Stagecoach for the last 12 years. Will he first join me in thanking them for their hard work, which I know will continue for the rest of this franchise and into the next? Does he also recognise the wider anxiety that this decision has prompted among railway staff about the security of their pensions? At privatisation, his Department promised to provide a long-term guarantee for their pensions. What assurance can he give them today that that has not changed?

[Andrew Jones]

The hon. Lady is quite right. I happily join her in thanking those who have worked in this franchise and, indeed, in all the other franchises to make our railway system work day in, day out. It is a hard job they do, and we should recognise that, not criticise them for it.

I also recognise that, when anything changes like this, there will be a degree of uncertainty. A level of uncertainty can come when there are takeovers in any sector of business, but when franchises change there are TUPE protections, which are positive, and I entirely support that. Pensions are a key part of having a comprehensive offer for workers in every sector, and the Pensions Regulator is working with the trustees of the railways pension scheme to ensure that workers’ benefits are protected. We want that to happen. We want to see people in the sector retire with secure, stable, good pensions.

[Neil O'Brien (Harborough) (Con)]

It is very welcome that we are going to have 80% more seats in the morning peak and new bi-mode trains that can benefit from the electrification to Market Harborough, but may I ask the Minister two things? First, when in the new franchise will those new trains arrive? Secondly, does he agree that if we are going to have new trains for the east midlands, they should be built in the east midlands?

[Andrew Jones]

My hon. Friend rightly never misses an opportunity to mention Market Harborough, of which he is a great champion. Obviously, the contract for the new trains will be placed by the new bidder, but I am always keen to see more manufacturing take place in this country. That is why we have been working to make the environment for manufacturing in this country so much better, which is one of the ingredients of the economic turnaround from the mess this Government inherited.

[Anna Soubry (Broxtowe) (Ind)]

I congratulate the hon. Member for Sheffield South East (Mr Betts) on securing this very important question. A large number of people across the east midlands will share his concerns about the granting of this franchise. Stagecoach at least backed the Access for All bid for Beeston station, and it is really unfortunate that the Government have not provided the money to make sure that we have that funding.

There is real concern about rolling stock and Abellio’s ability to provide it. In short, the Minister should know that Stagecoach certainly told me that there would be no new rolling stock. As he will know, we have on this line trains that are 40 years old. There will be no new trains for at least three years. We now need to firm this up. Will he confirm that Abellio will not provide trains for at least four years, or is there any chance that it might be a shorter period?

[Andrew Jones]

I recognise that the east midlands franchise has been successful. However, this bid was won on merit and awarded to the strongest bidder. It was the strongest bidder irrespective of any of the compliance issues that we have been talking about today.

As regards the Access for All bid for Beeston, it was not successful in this round. I imagine that we will see further rounds of Access for All funding because it is a critical part of this. We are working to make our railway network available for as many people as possible. There is no greater champion for that than the Under-Secretary, my hon. Friend the Member for Wealden (Ms Ghani), who is sitting next to me. I therefore suggest that the right hon. Lady speaks to her to discuss potential future bids for Beeston.

[Ben Bradley (Mansfield) (Con)]

I welcome any opportunity to improve the service through the east midlands and to get new trains. I echo the calls for those trains to be made in Derby if at all possible. Will the Minister confirm that the new contract includes a requirement for the new franchisee to bring forward a business case for the Robin Hood line extension through my constituency, for which we have been fighting for many years and will be a big step forward for my constituents?

[Andrew Jones]

I receive quite a number of lobbies on the Robin Hood line. I cannot provide the immediate reassurance that my hon. Friend is looking for, but I suggest that we could perhaps meet to discuss this further. I am aware that it will be of interest to many colleagues within the House.

[Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

The Public Accounts Committee has repeatedly highlighted the problems with the franchising system, and the fact that we were whittled down to a single bidder underlines that. I thank the Minister’s Department for sending me details of the franchise. The interesting point is the extension of the Govia contract, which will go on until November of this year, with an option to extend the agreement, the Secretary of State tells me, to April 2020. Does this mean that the outcome of the root-and-branch rail review will be so conclusive that he will have the time to run a new franchising project within six months?

--- Later in debate ---

[Andrew Jones]

I think that the hon. Lady is referring to the south eastern franchise.

[Meg Hillier]

indicated assent.

[Andrew Jones]

Right. Well, that franchise is still under consideration and we will be announcing the results in due course. The point in the letter to the hon. Lady was that while that evaluation is taking place, there has been a short extension to the existing franchise to ensure that passenger services can continue to operate.

[Mr Philip Hollobone (Kettering) (Con)]

The main concerns of Kettering rail users are finding a seat on crowded peak time trains to and from London, the low frequency of services north on the main line to Leicester and the level of fares per mile being among the highest in the country. Does the winning bidder address any of those issues?

[Andrew Jones]

Yes, it does, because it puts more capacity into the franchise so that many more of the constituents my hon. Friend serves so well will be able to secure the seats they are looking for.

[Nic Dakin (Scunthorpe) (Lab)]

When does the Minister expect the new hydrogen-driven trains promised in his statement to run?

[Andrew Jones]

This is the very earliest of stages, so I am afraid I cannot provide all the details on that. However, I am extremely keen to see further environmental improvements on our rail network, and it is with great relish that I will be taking the first opportunity to bring a hydrogen-powered train on to the network.

[Mrs Pauline Latham (Mid Derbyshire) (Con)]

The Minister paints a very glowing picture of this new franchise—it almost sounds too good to be true. As somebody who will be travelling on these trains every week, as he will not be, can he assure me that the quality of the brand-new trains that he has promised us, which will apparently be amazing, will be at least as good as the ones we have now and better than Abellio usually has, or will they be of inferior quality? When will they come into the franchise, and will they be stopping more frequently between London and Belper?

[Andrew Jones]

The quality of the rolling stock will be upgraded. The rolling stock in this area is indeed quite old. I am fully aware that I do not travel on the line as frequently as my hon. Friend, although I am quite a regular passenger. As we replace trains across our network, we are seeing a much improved service. In this instance, there will be more seats and free wi-fi across the franchise, which should benefit her and those she serves. On stopping at Belper, I will need to do some further investigation and reply separately on that point.

[Melanie Onn (Great Grimsby) (Lab)]

The franchise system is broken. It does not work for staff or in the interests of passengers. The potential for a direct line between Grimsby and London was scuppered by alleged anti-competitiveness between franchisees. Does not the process need a complete overhaul?

--- Later in debate ---

[Andrew Jones]

I have already said how I think that franchising has been a key part of the turnaround in our rail network since privatisation. On services to Grimsby, a new Nottingham to Grimsby service, with limited extension to Cleethorpes, is part of the new franchise, and the hon. Lady should welcome it.

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

What is the point of asking Keith Williams to conduct a root-and-branch review of the railways while at the same time awarding a very long franchise?

[Andrew Jones]

To make sure that we get the benefits to passengers as fast as possible.

[Ruth Smeeth (Stoke-on-Trent North) (Lab)]

After a 10-year campaign for station improvement, local residents in Kidsgrove finally secured funding under Access for All for an accessible bridge and an extended car park. Problems with Network Rail have delayed the project, meaning that the car park is now delayed. The car park programme is overseen by East Midlands Trains and will go over the franchise date. Can the Minister assure me that the change in franchise will not affect my car park?

[Andrew Jones]

I am keen to see the Access for All benefits implemented across the network as soon as possible. The detail of that question has been heard by the Under-Secretary of State for Transport, my hon. Friend the Member for Wealden, and she will make contact with the hon. Lady to discuss that issue further.

[Diana Johnson (Kingston upon Hull North) (Lab)]

I am really disappointed that the Secretary of State, who was in his place on the Front Bench earlier, was not able to take the urgent question, because franchising is one of the key planks of the Government’s railway policy. It seems to me that, as my hon. Friend the Member for Great Grimsby (Melanie Onn) said, it is failing passengers. Now an award to 2027 has been made, at the same time as the Williams review. How can that possibly make sense?

[Andrew Jones]

The diary of the Secretary of State is not relevant to this point. We have got a bid that delivers more seats, more capacity, more services, reduced journey times and a new fleet of rolling stock. This is not something that is failing: it is a positive thing and the hon. Lady should welcome it.

[Janet Daby (Lewisham East) (Lab)]

Yesterday the Department for Transport announced it has granted the south eastern rail franchise yet another extension. This is the fourth time that has been delayed. It is preventing investment and improvement for passengers. Does the Minister acknowledge that the delay is failing long-suffering passengers who rely on this service?

[Andrew Jones]

I will agree that franchising is one of the best ways to deliver passenger service improvements and new rolling stock, so we agree strongly on that. The hon. Lady might wish to speak with her Front Bench. In terms of the delay on south eastern, it is a complex matter and it is still being evaluated. We will make the decision as soon as possible.

[Mr Paul Sweeney (Glasgow North East) (Lab/Co-op)]

Is it not correct that the franchise system is a fundamentally flawed business model? Over the past 10 years, we have seen £3.5 billion extracted in dividends—money creamed off our railways that could have been reinvested had we had a proper model of public ownership and democratic accountability in our railway system. Indeed, Virgin Trains alone has extracted £53 million in the last year. It is a thoroughly inefficient system that needs to be corrected, and that includes ScotRail too.

[Andrew Jones]

The hon. Gentleman is wrong. He talks about the dividends that are paid, but he fails to remember one important point, which is the amount of investment brought in from the private sector through the franchising process. That has totalled £10 billion. Would the Labour party take that from taxation or other spending areas? Where will that money be found if we do not bring in private sector investment? Those are great questions which the Labour party is not addressing in its ill-thought-through, uncosted attempts at nationalisation.

[David Hanson (Delyn) (Lab)]

The east coast decision is inextricably linked to the west coast decision, which is forthcoming in June and causing great uncertainty for Virgin rail users in north Wales, the north-west of England and north to Scotland. Can the Minister give an assurance that any concerns raised about the east coast franchise will be reflected on before the west coast franchise is awarded?

[Andrew Jones]

The bids for the west coast franchise will be assessed and the franchise awarded in the normal way. I am slightly puzzled by the Labour party’s position on this. After the east coast main line affair last year, Labour was broadly suggesting that Stagecoach should not be allowed to bid for anything; now it is broadly suggesting that it is bad to take away any franchises from it.

[Mr Jim Cunningham (Coventry South) (Lab)]

Can the Minister clarify the situation with Virgin on the west coast main line? And I do not want a lecture about the Labour party’s stance; I want a straight answer.

--- Later in debate ---

[Andrew Jones]

The answer is quite straightforward. Stagecoach bid for the east midlands franchise, it was not compliant and, as part of the feedback that it received, was told that it was not compliant, which it knew, on the other bids as well.

[Daniel Zeichner (Cambridge) (Lab)]

The rail industry, through the Rail Delivery Group and with the support of the trade unions, wrote to the Government some weeks ago with alternative proposals to deal with the issues around the pension scheme. Will the Minister tell us his response to those proposals and say whether they were considered in this important decision?

[Andrew Jones]

I received a letter last week from the rail industry on that matter. That is still being considered and we will respond in due course, but that is not part of this award. The franchise has been awarded on merit to the strongest bidder, and we should be looking forward to the passenger benefits that will flow from that award.

[Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)]

The Minister will know that Abellio runs part of the London Northwestern Railway, which replaced London Midland. It is now reducing its timetable arrangements, so what comfort can my constituents in Stoke-on-Trent have that the east midlands train franchise, whose services run all the way from Nottingham to Crewe through the great towns and cities of Staffordshire, will not later be subject to the same reduction in services because Abellio was the only bidder and there is no alternative?

[Andrew Jones]

I will look in detail at the points that the hon. Gentleman makes, but our objective is to run more services. That is the key thing that is happening right across our network. We are running more services and carrying more passengers, and with a record level of safety, than at any point in British history, so to suggest that franchising has been a failure is a complete misunderstanding. I will of course look at his points and get back to him to discuss them further.

Oral Answers to Questions

Andrew Jones Excerpts

Thursday 21st March 2019 Commons Chamber

[Mrs Sharon Hodgson (Washington and Sunderland West) (Lab)]

9. What assessment he has made of the potential merits of extending the Tyne and Wear Metro to Washington.

[The Parliamentary Under-Secretary of State for Transport (Andrew Jones)]

The Department’s call for evidence, issued on 7 February, seeks views on how we can seize the opportunities to build on the success of light rail. I am grateful for the response that the hon. Lady sent to the Department highlighting the potential merits of extending the Metro system to Washington, and we will ensure that her comments are taken into full consideration.

[Mrs Hodgson]

Residents of Washington often feel like the town is an island compared with neighbouring cities and towns. It contains 70,000 of my constituents, 70% of whom use their car to get to work. Does the Minister not agree that investment in transport infrastructure—such as the extension of the best light rail system in the north-east to Washington—would be the perfect way to encourage people out of their cars, reduce congestion, improve air quality and reduce the nation’s carbon footprint? What’s not to love?

[Andrew Jones]

As ever, the hon. Lady has made a strong case for the original Washington. We are keen supporters of this local transport system. We are investing £317 million in the Metro renewals and refurbishment programme and a further £337 million in renewing the fleet, as the Secretary of State said a moment ago.

I am aware that Nexus has identified a number of opportunities to expand the Metro network. It is up to Nexus to build a business case and to seek funding accordingly, but I support the hon. Lady’s basic argument, which is that transport investment is a driver of economic growth and environmental improvement. That is why we are investing so much in our networks across the country.

[Chris Elmore (Ogmore) (Lab)]

10. What plans he has to increase funding for the Welsh railway network.

[The Parliamentary Under-Secretary of State for Transport (Andrew Jones)]

Network Rail’s proposed investment in the rail network in Wales during control period 6—between now and 2024—is £1.34 billion. That builds on the £900 million invested throughout control period 5 since 2014. That constitutes an increase of just under 50%. That investment will build a bigger, better railway for Wales.

[Chris Elmore]

Wales contains 11% of the UK railway network, but since 2010 it has received only 2% of the overall funding. Last year it received £177 million, while north-west London alone received £669 million. That is not acceptable. When will the Minister start investing in the Welsh railway network and end this chronic underfunding?

[Andrew Jones]

I am keen to see investment in the rail network throughout the United Kingdom. The budget for control period 6 is a record £48 billion, and, as I said a moment ago, the Wales budget for the next five years is £1.34 billion. That is just to tackle the infrastructure; we are also investing in tackling the new franchise—which is run by the Welsh Government—and in rolling stock.

[Martin Vickers (Cleethorpes) (Con)]

rose—

--- Later in debate ---

[Mr Speaker]

That is truly a trainspotter’s contribution.

[Andrew Jones]

I can see, Mr Speaker, why you referred to my hon. Friend as a parliamentary celebrity; that was properly ingenious. I will of course do all I can to help with the Suggitts Lane level crossing issue, and I much enjoyed my recent visit to his constituency and thank him for arranging the roundtable with local businesses.

[Christian Matheson (City of Chester) (Lab)]

Whether it is the line down to Wrexham or indeed the north Wales coast line, railways in Chester are hampered by the blockage that is the Hoole bridge in my constituency, which the Secretary of State knows about because he visited it during the 2017 general election. During the next control period, will Ministers make money available to improve and rebuild Hoole bridge?

[Andrew Jones]

I am not quite as familiar with the geography of the hon. Gentleman’s constituency as he is, so I will have to do some investigation work and then report back to him.

[David Hanson (Delyn) (Lab)]

The welcome investment in the Halton curve has meant that train services from Liverpool to Wrexham will very shortly recommence for the first time on a direct service, but will the Minister investigate with the Welsh Assembly Government and the local authorities the possibility of extending that service up the north Wales coast to Flint and other stations in north Wales for tourism and business purposes?

[Andrew Jones]

I will certainly investigate the question raised by the right hon. Gentleman. The £16 million investment in the Halton curve has enabled that new hourly direct service between Lime Street and Chester, therefore making it easier for constituents he serves and others across north Wales to travel, so I will see what we can do to make that easier.

[Nigel Huddleston (Mid Worcestershire) (Con)]

11. What steps his Department is taking to improve road connectivity in the Midlands.

--- Later in debate ---

[Mr Stephen Hepburn (Jarrow) (Lab)]

12. What steps he is taking to reduce rail fares.

[The Parliamentary Under-Secretary of State for Transport (Andrew Jones)]

The Government have frozen regulated rail fares in line with inflation for the sixth year in a row. In addition we announced the launch of a new 16 to 17-year-old railcard, with up to 1.2 million young people eligible for a 50% discount on rail travel to coincide with the new academic year. Fares revenue is crucial to funding day-to-day railway operations and the massive upgrade programme we are delivering, all of which benefit passengers.

[Mr Hepburn]

The Office of Rail and Road says that the train operating companies have paid out £1.3 billion in dividends since 2014. Would it not be better to use this money to cut fares, rather than paying fat cats in the private sector?

[Andrew Jones]

I should point out that 98p in every £1 paid in fares goes back into investment in the industry. The argument about nationalising the railways is one that we have had here before, and I think it is the wrong approach. The approach that we have taken for the past 25 years has led to a record growth in passenger numbers, a record number of services on our network and a record level of safety across our network. The hon. Gentleman’s suggestion would simply move us back to the 1970s and to a model that failed.

[Kevin Foster (Torbay) (Con)]

13. What plans he has to improve the resilience of the rail network in (a) Devon, (b) Cornwall and (c) Somerset.

--- Later in debate ---

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

15. What powers he has to sanction train operating companies for poor performance.

[The Parliamentary Under-Secretary of State for Transport (Andrew Jones)]

The Department monitors operator performance closely through the franchise agreement. If performance falls below a predetermined level, we can require the operator to incur expenditure to improve performance for passengers. If an operator delivers consistently poor performance, the Department can intervene to act in passengers’ best interests, and this can include removing the franchise and acting as the operator of last resort.

[Tom Brake]

The Minister will be aware, as will anyone here who is a Southern commuter, that for the past three years Southern has been let off the hook again and again. He will also know that, from next month, train operators will switch to “on time” as a target. Southern is currently hitting that target only 72% of the time. At what point will he call for the company to be sacked?

[Andrew Jones]

The right hon. Gentleman is not correct to say that action is not being taken. We have held Govia Thameslink Railway, which is part of the bigger franchise, to account for its role in the disruption last year. I recognise that the quality of service that he expects for his constituents has not been delivered over the past few years, but GTR will not make a profit in this financial year and we have capped the profit that it can make for the remaining years of its franchise. GTR is also paying £15 million into a fund for tangible improvements, in addition to the £15 million that it contributed towards the special compensation scheme.

[Tim Loughton (East Worthing and Shoreham) (Con)]

Further to the question from the right hon. Member for Carshalton and Wallington (Tom Brake), not only should GTR not be making a profit; it should be making a whopping loss for the appalling pig’s ear it has made of our service. After all those sanctions and penalties, how on earth can the Minister justify GTR still having that franchise?

[Andrew Jones]

I recognise the frustration that people have experienced in parts of our network, but just bringing the franchise to an end could cause further and unnecessary disruption for passengers and therefore be an inappropriate course of action. The question should be how we can improve our network, and that is the action that we are taking. We are seeing this coming through in performance improvements.

[Mr Clive Betts (Sheffield South East) (Lab)]

Poor performance is not just down to the operating companies. Peak-time trains between Sheffield and London are running slower than they were a year ago because of the botched timetable changes that the Department brought in. When is the Minister going to reverse those changes so that the journey times for peak-time trains between Sheffield and London can get back to being less than two hours, as they were a year ago?

[Andrew Jones]

The hon. Gentleman makes a point about Sheffield, so I will highlight the amount of work happening on the midland main line to improve journey times and passenger experiences up and down the network, including Sheffield.

[Jo Swinson (East Dunbartonshire) (LD)]

People in East Dunbartonshire experience an appalling rail service, particularly on the Milngavie line, where only 28% of trains arrive on time. Does the Minister know of any other train line on which performance is quite so poor, or could the Milngavie line be the worst in Britain?

[Andrew Jones]

The operation of the rail network north of the border is a matter for the Scottish Government, so I am not as sighted on the matter that the hon. Lady raises. If I start to become very excited about the issue, I may be treading into devolved territory, which may be inappropriate. However, I am aware of lines up and down the country on which performance has not been good enough, which is why we are investing at a record level to improve that performance.

[Mr Speaker]

Surplus excitement is undesirable. The Minister has an exciting enough life as it is, gadding about the country on a variety of different train services, and we are indebted to him.

--- Later in debate ---

[Andrew Griffiths (Burton) (Con)]

T8. On Saturday, some 15,000 people had a great day at the midlands grand national in Uttoxeter, bringing much-needed revenue and jobs into my constituency. However, had it taken place on Sunday, racegoers would not have been able to get to Uttoxeter until 2.53 pm. I am delighted that the Minister has listened to my long-running campaign and agreed to bring forward signalling on Sundays in 2021, but that is not soon enough. Will he agree to meet me, and perhaps bring along his cheque book, so we can sort this out for my constituents?

[The Parliamentary Under-Secretary of State for Transport (Andrew Jones)]

I thank my hon. Friend for that question. Through the next east midlands franchise, passenger services on the Derby to Crewe corridor will benefit from increased capacity, which means that trains will operate with at least one extra carriage to help satisfy local demand. This will be supplemented by additional early and late services, and improved Sunday services. The bids for the next east midlands franchise are currently being considered. Ministers just do not see those bids during that stage of the process, but as soon as there is news, I will share it with him. Of course, we will be delighted to meet him, as I always am. I cannot promise to bring my cheque book just at the moment, but I look forward to discussing the issue further with him.

[Daniel Zeichner (Cambridge) (Lab)]

Dockless bike hire schemes could have been transformative, but too many of those schemes have crashed and burned, leaving a trail of destruction behind them. Despite repeated calls from across this House, the Government have not regulated. Will they soon act?

--- Later in debate ---

[Maggie Throup (Erewash) (Con)]

Recent vegetation management alongside the railway has destroyed huge swathes of the Erewash landscape. Will the Minister outline what further steps have been taken to ensure that Network Rail does vegetation management responsibly and does not take the drastic measures it has taken throughout my constituency? It is really affecting the wildlife, as well as my constituents’ wellbeing.

[Andrew Jones]

We have been reviewing Network Rail’s environmental performance, and the consequences of the recently published new environmental strategy should follow through all areas of Network Rail’s work. We obviously need to maintain a safe rail network, but we also want to see the embankments and all the Network Rail land deliver environmental benefits. The two are not incompatible. I do not know about the specific area around my hon. Friend’s constituency, but I am happy to look at it. As regards the overall picture, we have seen some real change and progress in this policy area, and it will be a priority for the future.

[Lilian Greenwood (Nottingham South) (Lab)]

Electrification is clearly the optimal solution for intensively used rail lines, and the Railway Industry Association has shown that it can be delivered at costs that are 33% to 50% lower than those for past projects, if it is part of a rolling programme. Why will the Secretary of State not electrify the midland main line and give Nottingham the cleaner, greener and cheaper services it deserves?

[Bob Blackman (Harrow East) (Con)]

Will my right hon. Friend the Secretary of State update the House on when he expects Crossrail to start running? What investigation has been carried out into the scandal of its finances and budget and the overspending that has taken place?

[Andrew Jones]

The new management team at Crossrail is working through the project and will be advising everybody next month, I think, as to when there will be a target opening date. I do not think that information will come soon enough—I know that Londoners, including those represented by my hon. Friend, are hungry for it—but the scheme will be fantastic for London and the rest of the country when it opens. On the financial performance, the budget is managed by Transport for London, and the London Assembly has done some investigation work. In terms of the Department’s role, TfL and the Mayor came to the Department seeking a loan to help with the delivery of the project, and we were happy to help them. A further £2.1 billion has been made available, and that should be enough to see the project through to completion.

[Clive Efford (Eltham) (Lab)]

My train home on Monday night was cancelled and the train that I was trying to get in on yesterday was advertised as 20 minutes late when I gave up on it. That is just two of the seven trains I have caught so far this week, and it is a regular experience for my constituents. I raise the issue in the Chamber regularly. Will someone just come to the Dispatch Box and tell me, “We hear your pain” and that Ministers are going to do something about the Southeastern rail franchise?

[Andrew Jones]

I am acutely aware of the service levels of all our rail franchises throughout the country. I am also aware that 2018 was a difficult year and that some of the problems have continued. At the same time, it is fair to point out that we are seeing a service that is delivering more passengers and more services, at record levels of safety. In respect of the individual services that the hon. Gentleman tried to use, if he drops me a line I will look into them, take the matter up with the rail franchise and find out why the services were cancelled.

[Robert Courts (Witney) (Con)]

We must make the most of all the transport links that we already have. The Cotswold line is in urgent need of further upgrades, including further redoubling, to help with reliability and capacity. Will the Minister meet me so that I can make the case to him?

[Andrew Jones]

Yes.

[Mr Speaker]

Well done, Minister—very brief!

[Chris Elmore (Ogmore) (Lab)]

May I press the rail Minister again in relation to the Pencoed level crossing in my constituency? I have been asking for almost three years now for Transport Ministers to engage in getting the level crossing closed. The Labour-led local authority and the Welsh Labour Government have put forward funding for a transport plan. Wales Office officials are attending these meetings to close the level crossing. Will the Minister commit to sending officials to the next meeting to work towards closing one of the most dangerous crossings in Wales?

[Andrew Jones]

I will certainly make sure that officials are fully engaged on this issue.

[Andy McDonald (Middlesbrough) (Lab)]

On a point of order, Mr Speaker. It was said by the Minister, the hon. Member for Hereford and South Herefordshire (Jesse Norman), that I had made no mention of cycling in my speech to the Institute for Government yesterday. I made five mentions of it, and there were 300 words devoted to the subject. The Secretary of State then added that yesterday Labour announced hiking the cost of going on holiday. Mr Speaker, I do not want to stray into using unparliamentary language, but that is not true. I seek your guidance as to what we can do to ensure that Ministers come to the Dispatch Box to correct the record.

Draft Railway (Licensing of Railway Undertakings) (Amendment Etc.) (EU Exit) Regulations 2019 Draft Train Driving Licences and Certificates (Amendment) (EU Exit) Regulations 2019

Andrew Jones Excerpts

Tuesday 19th March 2019 General Committees

[The Parliamentary Under-Secretary of State for Transport (Andrew Jones)]

I beg to move,

That the Committee has considered the draft Railway (Licensing of Railway Undertakings) (Amendment etc.) (EU Exit) Regulations 2019.

[The Chair]

With this it will be convenient to discuss the draft Train Driving Licences and Certificates (Amendment) (EU Exit) Regulations 2019.

[Andrew Jones]

It is always a pleasure to serve under your chairmanship, Mr Hosie. The regulations will be needed in the event of no deal. They are being made under the powers conferred by the European Union (Withdrawal) Act 2018 to fix deficiencies in two sets of domestic railway regulations, alongside EU implementing legislation. Those regulations are the Train Driving Licences and Certificates Regulations 2010 and the Railway (Licensing of Railway Undertakings) Regulations 2005.

It may be helpful if I provide a little background. As part of measures aimed at liberalising rail markets, the EU introduced standard documentation for train driving licences for train drivers and rail operator licences. Those documents are valid across the European economic area. The Office of Rail and Road is responsible for issuing train driving and operator licences in Great Britain. Subject to meeting certain criteria, such as medical and competence requirements, the ORR will issue a train driving licence valid for up to 10 years. Train drivers also need a certificate, issued by the operator, confirming that the driver is competent to drive a certain type of train on the infrastructure. Operator licences are issued subject to the operator meeting certain conditions, including financial fitness and having the necessary insurance cover.

The draft regulations have been developed in close co-operation with the regulator—the ORR—Network Rail, the devolved Administrations and the wider rail industry. Officials in my Department have consulted the industry, including by holding a number of workshops, and they continue regularly to meet train operators and their representatives to give them clarity on the technical amendments being made by these regulations. The industry will welcome the certainty that the regulations provide; they are an important part of their own no-deal planning.

Let me turn to what the regulations specifically do. The regulations will ensure that the train driving legislation continues to function after exit. The draft Train Driving Licences and Certificates (Amendment) (EU Exit) Regulations 2019 amend our domestic regulations and three pieces of EU implementing legislation by making a number of technical changes. The draft regulations remove requirements on reporting to the Commission, references to member states, and functions reserved for the EU Commission and the European Union Agency for Railways. The regulations also amend the definition of a train driving licence so that it refers only to ORR-issued train driving licences. In addition, changes are needed to ensure that licences issued in Northern Ireland are valid for use in Great Britain, and to make corrections to the EU implementing legislation that applies to both GB and NI.

The draft Railway (Licensing of Railway Undertakings) (Amendment etc.) (EU Exit) Regulations 2019 make similar corrections by removing references to member states and replacing references to EU legislation with references to domestic legislation. The most significant amendment is to rename the European licence a “railway undertaking licence”. I realise that not everyone will class that as significant, but it is the most significant part of this regulatory change.

The draft regulations also revoke EU implementing regulation 2015/171. The EU template introduced by that regulation will no longer be required when we leave the EU, as the ORR has included the administrative requirements in its own licensing procedures.

Both sets of draft regulations also make transitional provisions that recognise existing European documentation, issued in other member states, for a maximum of two years after exit day or until it expires, whichever is sooner. In short, existing train drivers and operators providing services in Great Britain will not have to take any immediate action if the UK leaves the EU without a deal, regardless of where their documents were issued. The two-year recognition of licences also supports the smooth continuation of cross-border services, such as Eurostar, by ensuring that EU-licensed train drivers engaged in cross-border services will continue to be able to operate in the UK. In Northern Ireland, the role of issuing these licences falls to the Department for Infrastructure. A separate instrument is being taken forward on behalf of Northern Ireland, and the House will have the opportunity to debate that legislation.

The draft regulations are an important part of our no-deal preparations, because they provide clarity for business and certainty for drivers. They ensure that if the UK leaves the EU without a deal, this is done in an orderly and effective manner.

--- Later in debate ---

[Andrew Jones]

The hon. Member for York Central asked a number of questions. First, these regulations are being made in the event of no deal, so there is obviously an element of contingency. She asked whether they preclude further changes or whether we will have to revisit them. The regulations address the situation as it currently stands; they are about ensuring the smooth, continued operation of our rail network, including cross-border rail. The question about Northern Ireland will be dealt with by a separate statutory instrument.

The hon. Lady also asked whether these regulations will have an impact on anything that may came out of the Williams review. We do not know what that will be; I am obviously aware of the Labour party position, which is to renationalise the railways.

[Hon. Members]

Hear, hear!

[James Heappey (Wells) (Con)]

There is enthusiasm for that one!

[Andrew Jones]

Our country has had several decades of that, and it led to significant decline. That is not an area on which we are seeking agreement today.

[John Mann (Bassetlaw) (Lab)]

Can the Minister confirm that once we have left the European Union, renationalisation of the railways is a policy option that will be easy to deliver, unlike under EU public procurement rules? Will he confirm that if parliamentarians should choose to renationalise the railways—I would certainly vote in favour—that can be done once we have left the European Union?

[The Chair]

I call on the Minister to answer that briefly, because it is outwith the scope of these orders.

[Andrew Jones]

You are being quite tolerant, Mr Hosie. The hon. Member for Bassetlaw is correct to say that various opportunities will arise after we have left—I think we should be saying when, rather than if, we leave—the EU. It is fair to say that it would be easier to renationalise the railways when we have left, but the hon. Gentleman needs to reflect on his use of the word “easy”, because it would not be easy, and despite the last Labour manifesto saying that it would be free, there would be a giant cost to it. Renationalisation of the railways is not a matter for today, but these regulations would not impact on it, if a potential future, mistaken Government chose to make that mistake.

Regarding preparation, the key thing is that not many people will be affected by the two-year implementation period, during which we would seek to ensure that anyone with a train driving licence issued in the EEA had it relocated and issued here. The same goes for a rail operator. It may help the Committee if I highlight that on the rail operating side, we think just one operator is affected. It is a small freight operator in Norfolk that is not currently operational, and the regulator is already working with it to sort out the amendment to its licence.

Between 1% and 1.25% of train drivers in the UK have their licence issued in the EEA. To quantify that, it is about 250 people. Work between the operator and the regulator to correct the situation has been under way for about four or five months. We are not anticipating any problems whatever. It seems that two years is reasonable, considering that we are already well under way and the industry has welcomed the work in all our consultations.

[Rachael Maskell]

Can the Minister confirm that when the new regulator comes into force, the licence will have a simple transition and there will be no re-examination of train drivers?

[Andrew Jones]

It will, indeed, be a very simple matter. Our work is welcomed by the industry, as it brings clarity. We have taken a very pragmatic approach. It is not a question of seeking to cause problems; it is about ensuring that we have a regulatory framework for the smooth operation of our railways. Not precluding any future changes or packages, it is about now and having regulations in place should we leave without a deal. The industry has welcomed the proposed legislation, and that is the point I want to make. Only a very few people are involved.

The changes will make our rail sector regime more effective and provide certainty to train drivers and rail businesses. They will ensure a seamless transition of the existing licensing regime on exit day—not if there is an exit day. They will maintain the status quo and provide clarity, so I commend the statutory instruments to the Committee.

Question put and agreed to.

Draft Train Driving Licences and Certificates (Amendment) (EU Exit) Regulations 2019

Resolved,

That the Committee has considered the draft Train Driving Licences and Certificates (Amendment) (EU Exit) Regulations 2019.—(Andrew Jones.)

Garden Bridge: Funding

Andrew Jones Excerpts

Friday 15th March 2019 Commons Chamber

[The Parliamentary Under-Secretary of State for Transport (Andrew Jones)]

I congratulate the hon. Member for Ealing Central and Acton (Dr Huq) on securing this debate. I have to say that I think she has seen a lavish amount of conspiracy in this issue. She made comparisons with Suez and various other things which were, frankly, a little overblown. I have written down terms such as “rigged processes” and “mates’ rates”. Those are quite strong accusations, and I will comment more on them later, but I think it is important that we do not lose perspective.

I recognise, as did the Secretary of State and my ministerial colleagues at the Department for Transport, that the garden bridge is a subject that has always divided public opinion. I also remember that debate of about three years ago where strongly held views were expressed, both for and against, by people sitting next to each other on the Opposition Benches. This is a disagreement between neighbours as much as anything else. I do not think we can regard it as a political matter. It was a project that could have added a significant extra dimension to our already magnificent capital city.

Let me start at the beginning by explaining why the Government decided to support this iconic and novel project. The previous Mayor of London was approached, some years ago, with an idea for a completely new type of bridge: a footbridge, but one that was also a park; a place where people could cross the river as part of their journey or stop and enjoy their surroundings and the magnificent river views that this city presents. The then Mayor and Ministers considered that it could be an innovative and iconic project, but they did not believe that it should be wholly taxpayer funded. However, they did agree to help with some funding to kickstart the project and stimulate private sector funding. The Chancellor therefore announced in the 2013 autumn statement that the Government would provide £30 million towards the project as long as the Mayor contributed a similar amount and as long as a satisfactory business case showed that it would deliver value for money for the taxpayer.

The Garden Bridge Trust and Transport for London produced a business case in early 2014, and the Department for Transport analysed it carefully in the same way that it does for any other transport project. While the project was highly unusual and had a wide range of potential cost-benefit ratios, our analysis showed that there was a reasonable chance that it would offer value for money for the taxpayer. The hon. Lady asked whether the process was followed, and it was, but it was tough to cost and quantify the potential benefits.

In the light of the analysis, the Department agreed to release the £30 million pledged by the Chancellor but, importantly, we attached a number of conditions to it, including a cap of around £8 million on the amount of Government money that could be spent on pre-construction activity. That condition was designed to limit taxpayer exposure in the event that the project did not proceed. We also included a requirement for TfL to draw up a detailed funding agreement with the trust to govern how the money would be used. Over time, and in response to requests from the trust, the cap on the Government’s exposure was increased in stages to £13.5 million as circumstances changed and it became clear that more money was needed to get the project to the point at which construction could start.

[Dr Huq]

Does the Minister think that the £3 million a year running costs being financed by events on the bridge was a good model? Does he agree that that would have been doing things the wrong way around?

[Andrew Jones]

This was a very individual project, and it could have been a captivating addition to London’s already captivating centre. I could immediately see why organisers would consider such a venue as location for events, so I could see how those income streams could be developed. However, it is a challenge to decide how to use the initiative and ideas that come from campaigners, architects and designers and the good will of the charitable sector, with Government support in a public-private partnership, to deliver significant public good.

I am sorry that the project has not materialised, but we cannot say that an approach that brings people together should never again be used, because I can foresee circumstances in which it could, and possibly should, happen again. The hon. Lady mentioned certain projects, and although I am not particularly familiar with the detail of the Crystal Palace proposal, I am absolutely certain that initiatives that come from the creativity of community involvement, by bringing people together and using the Government as a means of leverage, either financial other through ministerial engagement, are part of what the future can look like. We should not rule that out, but if public money is involved, we should make sure that we learn the lessons, to which I shall come later in my speech.

In 2016, the Garden Bridge Trust asked the Government to underwrite the project’s potential cancellation costs. Let me be clear: that was not a request for additional funding; instead, it was a request to be able to use some of the £30 million that we had already committed, to pay the project’s cancellation costs, should that be necessary. The trust said that without such an underwriting guarantee, the project could not continue. After careful consideration, in late May 2016, the Department agreed to provide a time-limited underwriting guarantee but, again, with various conditions attached, including a requirement for the trust to provide more regular reports to the Department on the status of the project and the steps the trust was taking to address risks.

Over the summer of that year, as a result of further delays to the construction timetable, the trust asked whether the underwriting guarantee could be extended beyond the end of September 2016. Again, after consideration, the Department agreed that it could, but in such a way that the risks would be more fairly shared between the Government and the bridge’s private sector backers. To be precise, the Government agreed to underwrite up to £9 million-worth of cancellation costs, and it was intended that the private sector would be required to underwrite any additional cancellation costs above that amount.

The Government continued their support for the project and wished it well, but they always made it clear to the trust that it should not just be public money at risk should the project fail. Unfortunately, the garden bridge trustees took the difficult decision in August 2017 that, without the necessary guarantees from the current Mayor of London, the project could not continue and the formal decision was taken to close the project. Since then, the trustees have been negotiating with their creditors to close down the trust in an orderly fashion.

Transport for London has been working with the trust to satisfy the Department and itself that every £1 of public money spent on cancellation costs is absolutely necessary to support the project’s claims. I understand there are many concerns about the project, and I will talk about some of them. The Garden Bridge Trust was set up in 2014 to manage the construction of the bridge, and the experienced group of trustees was wholly responsible for the development and fundraising. The Department for Transport and Transport for London spoke to the trust on a regular basis about progress and concerns.

I understand that the hon. Lady and other hon. Members have expressed concerns about how the trust was being run, how public money was being spent and how much transparency there was on the project, but it would be wrong to say that nobody has scrutinised the project. There have been several reports and investigations into the project. The London Assembly has reviewed the procurement process. The National Audit Office has reviewed the project and reported on the Department’s grant control measures in 2016. The Charity Commission has looked at how the trust was run as a charity and reported in 2017.

[Dr Huq]

The Minister is detailing all the different reports, but we need one now that we have the final winding-up costs and the final bill. Those reports are historical. This looks like another white elephant, and I did not mention the cable car, which is another one. This is a whitewash of a white elephant.

[Andrew Jones]

I have mentioned investigations by the London Assembly, the National Audit Office and the Charity Commission, which clearly were not whitewashes. These are independent bodies. The hon. Lady has mentioned mates’ rates and closed groups, but the head of the Garden Bridge Trust was a former Labour Minister, now Labour peer, who was dealing with a Conservative Mayor of London. I do not view this as some closed, chummy, “old school tie” thing, which is what the hon. Lady is suggesting. I do not think the facts are remotely like that.

There has never been any secret about the investigations, and the fact that they have taken place demonstrates the robust scrutiny that has applied to this project to ensure that it was run properly and that we got the best value for taxpayers’ money. It is because of those inquiries that I do not think it necessary to have a new inquiry.

The Department for Transport continues to scrutinise the use of public money in spending decisions robustly. Clear safeguards were included in the garden bridge project on how and when the money could be spent to limit expenditure should the project fail. The hon. Lady asks about lessons learned, which are important for anyone who has responsibility for public finances. It is quite a difficult question, because this is such an individual project, but there is the principle of control of money. The Department has, for example, changed the way it handles rail development projects by introducing the rail network enhancements pipeline—the RNEP process—to ensure that projects cannot proceed to the next level of development until it is clear what the funding implications are. There is always, then, this iterative process of review and of lessons being learned from experience and new developments. Of course we learn lessons.

There are also processes for sharing good practice. There is a transport efficiency project whereby different parts of the Department share best practice to see whether lessons can be learned in the development of rail that could be applied to road, and vice versa. I would caution the hon. Lady, therefore, about saying that no lessons have been learned. Learning lessons is an existing part of standard DFT procedure and—I would hope—of every other Department and public body.

As the hon. Lady may be aware, the sum spent on cancellation liabilities will be significantly less than the £9 million made available, meaning that more of the funding originally allocated can be returned to the Department to be spent on other transport projects.

In conclusion, I understand the concerns raised by the hon. Lady and others who have spoken today and previously and I recognise it is unfortunate that public money has been spent without the project coming to fruition, but despite people’s best efforts projects sometimes do not achieve their potential. The decision to support the project was taken with the view that it would be successful. It did not fail to capture the public imagination. It might have polarised it, but some clearly saw how it could enhance an already magnificent cityscape.

My Department will continue to scrutinise funding decisions and make sure we continue to deliver value for taxpayers. That is a regular part of all that we do. It has not been compromised by this project and will remain a part of all our future project management.

Question put and agreed to.

Rail Services: South-east London

Andrew Jones Excerpts

Wednesday 6th March 2019 Westminster Hall

[The Parliamentary Under-Secretary of State for Transport (Andrew Jones)]

It is always a pleasure to serve under your chairmanship, Sir Henry. I, too, congratulate my right hon. Friend the Member for Bexleyheath and Crayford (Sir David Evennett) on securing this important debate. Many important issues have been raised, and I will be scampering through trying to answer all the comments from colleagues, including on the landslip that my right hon. Friend raised with me before the debate, as he is a vigorous champion for his constituency. I will also talk about the infrastructure works, Southeastern’s performance, Crossrail and Ebbsfleet.

I will start with the landslip at Barnehurst. Landslips cause significant delays and cancellations, as trains obviously have no real capacity to deal with any kind of small obstacle. If there is debris on the track after a landslip, Network Rail will often need to re-route services to enable the landslip to be cleared and the infrastructure to be checked to ensure that it is safe and operational. There are always concerns, even after a small landslip, that the slope may be permanently weakened. Some of the slopes, or cuttings, on the side of the tracks may need to be strengthened as a result. That may include improved drainage or adding stronger materials to the slope, such as steel rods or soil nails, and that work can take some time.

The landslip at Barnehurst took place on 11 February and the service was not fully reopened until the following week on Monday 18 February. That was a significant inconvenience for the travelling public in the area, but work has been done to mitigate future landslips. I know that it has been a regular problem in the area, and to help to prevent further landslips Network Rail has installed remote sensors and cameras that send its monitoring headquarters regular information, including visual information, about the condition of the cutting.

While removing the debris and the slope, Network Rail has taken the opportunity to put in place some further mitigation. It has taken away 300 tonnes of earth and trees, and built a 30-metre retaining wall with steel beams piled six metres into the ground to stop another landslip. Network Rail has also removed and replenished the contaminated ballast, and tested all the signalling. If any slips occur again in the area, the wall that has been erected should prevent any further disruption to the line.

I know that my right hon. Friend the Member for Bexleyheath and Crayford met representatives of Network Rail to discuss the issue, and that they have explained to him what is going on. That work includes geotechnical surveys to understand the cause, not just to deal with the symptoms. Network Rail also plans to carry out more intensive remediation work at the site over the next two years. That underpins the wider investment that is being put into the south-east through a Network Rail funding settlement for the next five years. That will allow for a significant increase in expenditure on maintenance and renewals, all of which is designed to reduce the frequency of serious incidents and to provide a more reliable service. That underpins the comments we heard from Members across the Chamber.

I note the clear concerns about Southeastern’s performance in the recent passenger survey. I fully understand, and strongly agree, that passengers want a timetable that they can rely on. Their days and working careers are built around predictable structures, and timetables matter. The May 2018 timetable changes caused some unacceptable disruption, but important lessons were learned and implemented. The December timetable change was introduced successfully. The industry has significantly reduced the timetable changes to minimise the risk of severe disruption, and has introduced a phased, more gradual approach to enhancements.

Many changes were focused on improving performance and reliability for passengers. It might be of interest that in the next control period, starting only next month, we will introduce a new “on time” performance measure to assess the reliability of every journey. That will provide greater transparency about performance at every station along the route, not just whether trains reach their final destination on time. It is part of a much wider commitment by the industry, and by Government, to provide a rail service on which passengers can rely.

If train operating companies are unreliable, we must hold them to account. We have worked closely with consumer groups and the industry to create an independent rail ombudsman. That scheme is free, easily accessible and simple to use. It is designed to be a one-stop shop for passengers on issues to do with complaints handling, customer service and compensation. Of course, we want to get to a place where we do not have to worry about compensation; we just want the trains to be on time, every time. That is the purpose of our investment.

[Matthew Pennycook]

As the right hon. Member for Bexleyheath and Crayford (Sir David Evennett) mentioned, rolling stock is key to reliability. The rolling stock on this line is, I think, 25 years old or more. Is the Department working with the operator to introduce new rolling stock in the near future?

--- Later in debate ---

[Andrew Jones]

I am coming on to the next franchise, but I should point out that we are seeing a fantastic change to the rolling stock right across our nation. We are going through a change that is equivalent to when we went from steam to diesel, with about 7,000 new vehicles entering service across our nation.

There were clear concerns about Southeastern’s performance. It has been improving recently and remains stable. Cancellations are reducing. A key change has been the improved collaboration between Southeastern and Network Rail. The latest statistics on the public performance measure indicate that 88.1% of services arrive at their final destination within five minutes of the planned arrival time. Today, it is 96%—I checked just before coming into the Chamber. However, we recognise that there is much to do, and we want the trains to be on time every time.

The issue of Lewisham signalling was raised, which is a significant piece of work. More than £130 million-worth of work will take place between now and Easter 2020. This Easter, £55 million will be invested in the Lewisham, Woolwich and Charlton area. In Easter 2020, £81 million will be invested in the Hither Green area. All of that will upgrade the signalling to provide a more robust service.

I cannot announce to the House when a decision will be made on the next franchise. The current franchise was extended in December, and the agreement will now expire, as was said, on 23 June. We are still in the process of evaluating the agreement for the next franchise. It has taken longer than anticipated because we want to ensure that passengers get the best possible deal. The invitation to tender is expected to bring some significant benefits in the new franchise, including longer trains, more space for passengers, increased availability of staff and improved communication with passengers, especially during periods of disruption. A comment regularly made whenever there is disruption is, “Just tell us what’s going on.” That is the voice of passengers, and it has not been as strong as it should have been.

[Gareth Johnson]

As the Minister will know, I was very pleased to have the Oyster card extended to Dartford. Does he agree that the provision of smart ticketing must be included within any new franchise agreement?

[Andrew Jones]

I strongly support smart ticketing, and it will be in the next south-eastern franchise. It is popular with customers, and helps them with the convenience of their journey, though it is tough to deliver. We have also had requests regarding Delay Repay compensation. The next south-eastern franchise will include Delay Repay compensation kicking in from 15 minutes of delay. Alongside that we will see new services on Sundays, and wi-fi and mobile connectivity. I am keen to bring that significant range of customer benefits to the constituents whom the Members present serve as soon as possible. I have heard what has been said about the urgency of delivering it, and I will update the House as soon as we can.

I share both the excitement about the scale of Crossrail and what it will deliver for the country and the frustration that it will not be delivered on time. The Crossrail board decided to delay the opening on 29 August last year, and informed the Government of that. We do not yet have a new date for the opening. I have met representatives of Crossrail to press the case. I want to see the scheme out there as fast as possible. It will increase capacity and rail transport in London by 10%, and bring an extra 1.5 million people within 45 commuting minutes of London’s key business districts.

On extending Crossrail or, as my hon. Friend the Member for Dartford (Gareth Johnson) said, completing it, I am instinctively sympathetic to the idea that transport investment is a driver of economic growth. It unlocks potential for commercial and residential opportunity. I fully understand the strategic importance—not just in the areas represented by the Members present, but nationally—of the potential of the Thames estuary. A strategic outline business case has been submitted to the Department, looking at options to extend Crossrail to Ebbsfleet. We are considering those proposals and will respond to the promoters in due course. I cannot give a date yet, but I recognise the urgency.

I will look at the points made by my right hon. Friend the Member for Sevenoaks (Sir Michael Fallon) regarding fares. The Government want to help people to keep more of their own money. That is why we have increased the personal allowance, and why we are in our sixth year of freezing the regulated fares, or capping them so that they can increase only in line with inflation. However, I will look at the specific points mentioned. I will also look at the point about Maidstone. We are certainly committed to improving regular services between Maidstone and the City as soon as possible, and we are working very closely with the industry to finalise plans for the remaining stages of the Thameslink timetable. That work includes future services from Maidstone East.

I fully recognise the importance of rail to the constituents served by colleagues present. Work is taking place to strengthen the area around the Barnehurst landslip, and we are working to bring the matter of the franchise to a conclusion as quickly as possible, so that people know where they stand and the travelling public receive the benefits. I thank right hon. and hon. Members for their contributions. I hope to leave the travelling public watching the debate with the clear impression that we are working to give them the rail service that they deserve.

Question put and agreed to.

Aberystwyth to Carmarthen Railway Reopening

Andrew Jones Excerpts

Wednesday 20th February 2019 Westminster Hall

[The Parliamentary Under-Secretary of State for Transport (Andrew Jones)]

It is a pleasure to serve under your chairmanship, Mr Paisley. I congratulate the hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards) on securing the debate.

I share the hon. Gentleman’s interest in ensuring that the corridor between Aberystwyth and Carmarthen in which this former rail line is located has the transport infrastructure that it needs to flourish and grow, and I agree that the potential role of reopening that line needs to be carefully considered by regional partners alongside potential improvements to existing transport links. He thinks that that area of Wales is one of the most beautiful in the world. I entirely agree. My name might be Jones, but I have to say that I am a Yorkshire Jones, rather than a Welsh Jones.

The hon. Gentleman says that the Government are not investing anywhere outside London and have ignored Wales. I do not accept that. The Government have committed to investing in Wales. We delivered the Wales Act 2017, which places the Welsh devolution settlement on a firm footing and builds further powers in areas such as transport, elections and energy. We are providing a boost of more than £550 million to the Welsh Government’s budget, including more than £25 million from a 5% uplift in the Barnett consequentials. By 2020, the Welsh Government’s block grant will have grown to more than £16 billion before tax devolution adjustments, which is a real-terms increase over the spending review period.

The Williams review is looking at the structure of our rail industry and includes a review of devolutionary arrangements. I hope that we will see more devolution in our services, but let us see where that goes. We do not yet know what Mr Williams will recommend.

The UK Government recognise that improving transport connections is an important part of helping people to access job opportunities, supporting business growth and access to education in Wales. Throughout control period 5, which covered the period from 2014 to now, Network Rail invested £900 million in the Welsh rail network. That includes a £50 million project to upgrade the north Wales railway, including new signalling on the north Wales coast mainline from Shotton to Colwyn Bay, which was completed only last year.

Network Rail’s proposed investment for the rail network during CP6, which starts in April and runs to 2024, is £1.34 billion. The Welsh Government now have responsibility for franchising rail services in Wales, and franchises bring investment. The new Transport for Wales franchise will recruit an additional 600 members of staff and invest £194 million in station improvements.

We have committed £125 million to the upgrade of the Valley lines as part of a wider contribution of £500 million to the Cardiff capital region investment fund, which will help to drive the growth and employment increase in the Cardiff region that we all want. Through our investment, Wales is benefiting directly from a range of projects.

HS2 was mentioned as a white elephant. I do not accept that. HS2 will deliver the capacity and connectivity that our United Kingdom needs. It will benefit the people of Wales, most obviously by bringing forward by six years the delivery of HS2 to Crewe to give access to north Wales. The idea that the Government are focused only on London is simply not correct.

In addition to the spending I mentioned earlier, Bow Street station near Aberystwyth was announced as one of the five successful new station fund 2 stations in July 2017. The scheme received close to £4 million from that fund in addition to £2.4 million from the Welsh Government. The station will increase accessibility to the rail network, improve transport integration and provide an alternative to car journeys. It is on schedule for completion by April next year.

The line from Aberystwyth to Carmarthen was closed to passenger traffic in 1965, although a section remained open to freight until 1973, as the hon. Gentleman said. I am aware of the local group, Traws Link Cymru, which campaigns to reopen the line. The group was established in 2013 and calls for the reinstatement of rail links across west Wales. I pay tribute to its work. It has raised the profile of the case for reinstating that 55-mile link. The scheme has been discussed here on several occasions, including a debate in November 2017.

Our rail strategy, “Connecting people”, includes exploring opportunities to restore capacity lost under Beeching where it unlocks growth for housing or commercial development, eases crowded routes or offers value for money. The strategy makes it clear that any potential line reopening would need to demonstrate a strong business case if Government funding were sought. If we are to invest in reopening routes, they have to unlock economic or housing opportunities, or break up a point of congestion.

The Government have, however, consistently explained throughout the years that local authorities and local leadership are best placed to decide on and take forward transport schemes that will most directly benefit their local areas. We work closely with individual authorities to help them to take forward schemes that they are interested in progressing.

The rail planning process is led by Network Rail with input from a wide range of stakeholders and funders. In March 2016, Network Rail published its Welsh route study, which sets out its strategic vision for the network in Wales over the next 10 to 30 years. That route strategy will inform decisions by funders for the period up to 2024, and the reopening of the route between Aberystwyth and Carmarthen is identified as a stakeholder aspiration. It has not, however, been identified as a potential priority for funders during that period.

As the hon. Gentleman said, the Welsh Government and local authorities have commissioned useful reports over the years. A scoping study commissioned by the Welsh Government, which reported in October 2015, set out all the issues to be considered in a full feasibility study into reopening the line. The report identified a large section of former track bed that remains in place, but there are other engineering challenges. It discussed the potential routes to obtaining consent, along with the operational and environmental considerations.

In November 2016 a strategic case jointly commissioned by Ceredigion/Cardigan County Council appraised potential options for improving strategic connections between Aberystwyth and Carmarthen. It recommended that road-based options were taken forward and a rail link not pursued further. That was followed by a Welsh Government-funded £300,000 feasibility study completed only last year that estimated the cost of reinstatement at £775 million.

The study identified numerous challenges, including the continued need to accommodate the Gwili Railway Preservation Society, which runs on part of the former track bed. It considered the environmental impact: ground conditions, property impacts and the need for environmental protection of peat bogs. Subject to the satisfactory resolution of the issues, the report states that initial operational assessments have determined that the reinstated route could provide a regular hourly train service between Aberystwyth, Llanilar, Tregaron, Lampeter, Llanybydder, Pencader and Carmarthen—I am not sure I got the pronunciations absolutely correct—with an end-to-end journey time of around 85 minutes. It really comes down to how we can best serve the transport connections in that area to deliver the connections that the hon. Member for Ceredigion (Ben Lake) articulated very clearly.

The route can include bus services as well. The hon. Gentleman mentioned there was a bus service. There is a road-based transport link in the TrawsCymru bus service, funded by the Welsh Government. It has operated since 2014, seven days a week, between Aberystwyth and Carmarthen. It has an hourly service on weekdays and Saturdays. I recognise the journey takes more than two hours, but it does connect Aberystwyth and Carmarthen rail stations and offers free weekend travel. TrawsCymru is an important part of the integrated transport network in Wales. The route between Aberystwyth and Carmarthen connects with Bwcabus and is a fully accessible bus service.

I will finish by congratulating the hon. Member for Carmarthen East and Dinefwr on the commitment that he and his local groups have shown to the issue. I recognise entirely the case he makes for broader devolution with transport budgets, but I also have to highlight that the Government look to local leaders, local authorities and the Welsh Government to determine their priorities for connectivity in his region and in Wales. On this particular proposal they think the transport need can be met through other solutions, but of course that may change over time. I look forward to seeing how the Welsh Government determine their transport priorities in the future.

[Ian Paisley (in the Chair)]

Congratulations on the pronunciations, Minister.

Question put and agreed to.

Draft Air Traffic Management (Amendment etc.) (EU Exit) Regulations 2019

Andrew Jones Excerpts

Monday 18th February 2019 General Committees

[The Chair]

Good afternoon. Hon. Members may remove their jackets if they wish to do so, but preferably nothing else—this is not the “Today” programme. [Laughter.] There is a clue in the title of the regulations. This is not an opportunity to discuss the whole future of the European Union. We have only an hour and a half, and although I wish to be as facilitating as possible, let us confine ourselves to the contents of the regulations.

[The Parliamentary Under-Secretary of State for Transport (Andrew Jones)]

I beg to move,

That the Committee has considered the draft Air Traffic Management (Amendment etc.) (EU Exit) Regulations 2019.

It is always a pleasure to serve under your chairmanship, Sir Roger. The draft regulations are made under the powers conferred by the European Union (Withdrawal) Act 2018 and will be needed if the UK leaves the EU without a deal. This statutory instrument retains the regulatory tools to ensure the continued provision and oversight of air navigation services after the UK leaves the EU and is an essential element of our contingency planning for a no-deal exit. The instrument neither extends nor diminishes regulation; it just ensures continuity.

The draft SI amends single European sky legislation: the four basic regulations that provide the framework for EU air traffic management regulations and the implementing regulations that set out the detailed requirements. As Committee members will have seen from the papers, they are detailed, technical matters, which I will quickly explain.

The implementing regulations cover air traffic management interoperability: the manner in which the UK works with other states to deliver air navigation services; the organisation of airspace; the safety and oversight of air navigation services; new technology and how it is to be used; and a system of performance and economic regulation for air navigation services. The single European sky legislation supports the EU initiative to improve the efficiency of air navigation services while maintaining safety within the European air traffic management system.

The delivery of air navigation services is vital to ensure that congested airspace can be used safely and efficiently. The services regulated by the single European sky legislation support air traffic growth by ensuring the safe separation of aircraft. If services are not provided in an efficient way, it can cause considerable delays to traffic with resultant costs and disruption to airlines and passengers. The instrument will ensure the effective regulation of air traffic management so that the arrangements in the UK continue.

The draft instrument addresses areas where retained EU law will no longer function effectively after leaving the EU by removing the roles of EU bodies that cannot be performed by the UK after exit, and provisions where there is already satisfactory UK legislation. Where possible, roles currently undertaken by the European Commission and EU bodies are being transferred to the Secretary of State or the Civil Aviation Authority; but where they relate to pan-European functions, including air navigation services delivered by more than one state, they are being removed. The instrument includes arrangements to recognise EU-based certifications and authorisations existing immediately before exit day. The certifications and authorisations will be preserved for a maximum of two years, subject to any earlier expiry or termination, providing continuity until another agreement is reached with the EU on such issues.

The single European sky legislation includes a regulatory framework for the development and deployment of new technology and ways of using it: the single European sky air traffic management research and development programme—a mouthful that is abbreviated to SESAR. The EU regulations set up organisations and arrangements in which the UK will no longer be able to participate and which the UK cannot legislate for as a third country. We are, however, retaining requirements for deployment of new technology by UK operational stakeholders, predominantly the UK’s air navigation service provider, NATS—formerly National Air Traffic Services—to ensure interoperability with the EU air traffic management system is retained.

The instrument also ensures that the UK will continue to comply with its international obligations, such as those set out in the Chicago convention on international civil aviation. That is done by retaining the regulations that dictate how we comply with the standards and recommended practices adopted by the International Civil Aviation Organisation under that convention.

As I said, the instrument is an essential element of our contingency planning for a no-deal exit. It makes no changes to the objectives of the EU single European sky regulations. Instead, it maintains the existing regulatory framework of technical requirements for air traffic management to ensure the continued provision of efficient, safe air navigation services, to uphold the effective regulation of the UK air traffic management system, and to maintain interoperability between the UK and the EU after the UK has left the EU.

Hon. Members may be interested to know that the devolved Administrations and NATS have been consulted on the statutory instrument and are happy for it to proceed. I commend it to the Committee.

--- Later in debate ---

[Andrew Jones]

I thank hon. Members for their consideration of the instrument and their questions, which I will try to answer.

On the SESAR funding, if there is a no-deal exit, the Government will underwrite what would have been paid to the UK under the current arrangements. That provides certainty and continuity for those involved.

Our understanding is that the European Parliament does not want to see a capacity freeze on flights to and from the EU. That would be very bad for business. The Commission has put forward an idea that has not been met with much warmth from the European Parliament. We will continue to monitor the situation, but it looks likely that there will not be a capacity freeze. Obviously, that is very positive.

No deal: should it be taken off the table? We have had quite a number of discussions about that in Delegated Legislation Committees and the Chamber, and it is pointless to revisit them. The way to avoid no deal is, of course, to vote for a deal. There is a deal on the table to be voted for. The Prime Minister has said on a number of occasions that that it is not possible to take no deal off the table, for reasons that have been rehearsed.

I mentioned in my remarks that the devolved Administrations, NATS and other stakeholders have been consulted. There has been engagement in confidence with the relevant stakeholders. Ministers and officials have had regular engagement with the aviation industry, air navigation service providers and airspace users through meetings, workshops on EU exit and our long-established stakeholder forums. A number of issues relating to the UK’s withdrawal from the EU have been addressed, including plans for making this secondary legislation to ensure the statute book continues to function irrespective of the outcome of negotiations. There has been support for continuity of the regulatory framework among stakeholders, as the hon. Member for Kingston upon Hull East said. It is in everybody’s interest to ensure smooth continuity so that this important sector can continue to operate. We work closely with the CAA on all aviation matters, including preparation for EU exit. That work and the consultations will continue.

I think that answers hon. Members’ questions. I close by saying that this is an important SI to land, because we need to prepare for every eventuality, including a no-deal scenario. The instrument is essential to ensure that we have an effective regulatory framework for air traffic management in the UK from exit day. I commend the regulations to the Committee.

Question put and agreed to.

Oral Answers to Questions

Andrew Jones Excerpts

Thursday 14th February 2019 Commons Chamber

[Fiona Bruce (Congleton) (Con)]

1. What progress he has made on the (a) removal of old and (b) delivery and deployment of new rolling stock.

[The Parliamentary Under-Secretary of State for Transport (Andrew Jones)]

With permission, I will answer this question together with Question 16.

A total of 7,800 new carriages have been ordered since 2010. More than 3,000 have been delivered, with more than 4,700 due by the end of 2022. Those trains will help to transform the passenger experience, offering greater capacity, more pleasant carriages, air-conditioning, and wi-fi, and they will enable operators to remove old and unpopular rolling stock from service.

[Fiona Bruce]

Middlewich is a growing town, with jobs being created and a positive future. The people of Middlewich appreciate the Government’s recognition of that, with almost £50 million of funding being provided for a new bypass, but their aspiration does not stop there, and rail connectivity is poor. What support can the Government give on that?

[Andrew Jones]

My hon. Friend has campaigned continually over many years for the reopening of Middlewich railway station, and I know that she has very strong support within the town for this. I know as well that it is a top priority now that the Middlewich bypass has been delivered. We welcome the work being undertaken by the Cheshire and Warrington local economic partnership, including the proposals to reopen the freight line through Middlewich, in Cheshire, for passenger services and to reopen Middlewich station. Findings are due at the end of this month, and I look forward to hearing the recommendations from that work.

[Mr Speaker]

I call Tom Tugendhat. Not here—where is the fella? I hope that he is not indisposed, as he is the Chair of a very important Committee of the House. Perhaps he is preoccupied elsewhere; I know not. What I do know is that the right hon. Member for Haltemprice and Howden (Mr Davis) is here. I call Mr David Davis.

[Mr David Davis (Haltemprice and Howden) (Con)]

The Minister will be aware that he could replace and upgrade every piece of rolling stock in the country for less than half the price of High Speed 2. Why do we not just cancel this white elephant and give the public something that they want?

[Andrew Jones]

I say to my right hon. Friend that we are doing both. We are replacing the rolling stock in our country and delivering HS2, which is what we need to deliver more capacity in our rail market.

[Lilian Greenwood (Nottingham South) (Lab)]

If we believed Ministers’ promises back in 2012, passengers on the midland main line would be travelling on new electric trains this year. Instead, they are on old British Rail stock, the toilets empty straight onto the track, and they have to lean out of the window to open the door when the train arrives in the station. That is not great for anyone, and it is certainly not disabled friendly. The Government’s inclusive transport strategy, published last year, does not contain any commitment that all rolling stock on the rail network will meet the accessibility deadline of 1 January 2020—a deadline that this industry has known about for 20 years. The strategy does give that commitment for buses and coaches; why not rail?

[Mr Speaker]

If the hon. Lady experiences some of what she has described, I can say only that it must be a most undignified experience for the Chair of the Transport Committee of the House of Commons.

[Andrew Jones]

We are making sure that we are dealing with the disability issue. We want to make sure that the rail network offers smooth, easy journeys for people with disabilities. With regard to the rolling stock coming on to the midland main line, of course, we will deliver it as soon as possible.

[John Spellar (Warley) (Lab)]

I wish to follow the line of argument of the right hon. Member for Haltemprice and Howden (Mr Davis). I do not know whether the Minister has read the very authoritative transport study produced for the previous Government by the British Airways chief, Rod Eddington, which clearly made the case against grand projects and advocated widespread incremental improvement. Would we not be better served if the Government funded not only rolling stock but many other transport improvements by scrapping the ever more expensive, budget-busting HS2?

[Andrew Jones]

Again, I give the answer that I gave to my right hon. Friend the Member for Haltemprice and Howden (Mr Davis): we are doing both. It is not a question of one or the other. We are delivering HS2, which is required to add capacity into our rail network, and, at the same time, we are also delivering, in control period 6, maintenance and enhancements worth £48 billion across our classic rail network. So we are doing both, not one or the other.

[Sir Patrick McLoughlin (Derbyshire Dales) (Con)]

Will my hon. Friend tell us what progress is being made on replacing the Pacer trains, which the previous Government continually failed to do? When will that train be off the tracks and replaced by new rolling stock?

[Andrew Jones]

My right hon. Friend has a very distinguished record in bringing new rolling stock forward into our rail network. The Pacers will be gone by the end of this year; they are being replaced by a new fleet of 281 air-conditioned carriages, which is more than double the minimum tender required by the Government. The first of those new trains are already in the UK and going through testing. The remainder of the Northern fleet are being refurbished to as good as new, and the first of them are already in service. That is a very positive piece of news, and I can confirm that the unpopular Pacers will be gone by the end of the year.

[Tim Farron (Westmorland and Lonsdale) (LD)]

New rolling stock will of course be welcome, but is the Minister aware that there will be no stock rolling at all north of Preston over the busy Easter weekend because Network Rail is closing the line for maintenance? Does he not know that the Lake district is Britain’s biggest visitor destination outside London and that Easter weekend is our busiest time of year? Will he tell Network Rail to change its plans?

[Andrew Jones]

I am of course aware of the importance of the Lake district to our national tourist economy, and of tourism to the Lake district’s economy. It is not possible to upgrade the lines without closing them on occasions, and the work clearly has to be done to minimise disruption for the travelling public. I will pass the hon. Gentleman’s point through to Network Rail, but these things take a considerable amount of time and it is probably not possible to make changes at the very last minute.

[Several hon. Members rose—]

--- Later in debate ---

[Joan Ryan (Enfield North) (Lab)]

8. What progress has been made on four-tracking of the West Anglia main line.

[The Parliamentary Under-Secretary of State for Transport (Andrew Jones)]

Work is nearing completion on the delivery of a third track on the West Anglia main line between Tottenham Hale and a new station at Meridian Water, enabling two additional trains per hour. Additional tracking is also being considered as part of proposals for Crossrail 2. I understand that the Greater London Authority has submitted a bid to the housing infrastructure fund for a fourth track from Tottenham Hale to Meridian Water.

[Joan Ryan]

On Saturday last, some 90 constituents turned up at my community meeting to complain, most loudly, about the cancellations, delays and poor service on the line. Frankly, they deserve better and have done for a very long time. Early delivery of four-tracking by 2026, in advance of Crossrail 2, would provide additional stopping services, up to 3,800 extra seats between Cambridge and Liverpool Street in the morning, faster journeys, improved reliability, accelerated delivery of up to 25,000 homes and 10,000 new job starts along the corridor. Why are the Secretary of State and the Government not getting on board with this proposal more quickly? I urge the Government to support it and to do so now.

[Andrew Jones]

To suggest that the Government are not investing in our rail network is clearly ridiculous. The Government are investing more than any other Government in British history. On the specifics of the scheme, on the West Anglia main line the right hon. Lady can look forward to seeing new trains and all the benefits that will flow from them. The investment work that has taken place, which I outlined in my earlier answer, is already starting to see benefits for the constituents she serves.

[Maria Caulfield (Lewes) (Con)]

9. What steps he is taking to reduce HGV traffic on rural roads.

--- Later in debate ---

[Maria Caulfield (Lewes) (Con)]

T8.   When will we see the end of short formation trains on the Southern rail network? On the Lewes to Eastbourne stretch, we are on four-carriage trains every day. When will this misery end?

[The Parliamentary Under-Secretary of State for Transport (Andrew Jones)]

Officials in my Department monitor the number of short formations on Govia Thameslink Railway services as one of its performance benchmarks. There are a number of actions we can take when performance falls below agreed levels, and I am pleased that we are now seeing the lowest number of short formations on GTR since the start of the franchise. I hope that this positive trajectory continues, and I will continue to monitor it.

[Dr Paul Williams (Stockton South) (Lab)]

People in Stockton cannot get a bus back home after an afternoon doctor appointment, while the Tees Valley Mayor has spent £15,000 on Facebook advertising after almost two years but still has not come up with a plan to improve buses. When will my constituents get better bus services?

--- Later in debate ---

[Emma Hardy (Kingston upon Hull West and Hessle) (Lab)]

At the last Transport questions, I asked the Minister for help in persuading First Group to lend Hull Trains a new train six months early. Does he agree that the fact that I have not had a direct response is disrespectful and indicates First Group’s dismissive attitude to Hull? Instead, I had to read the response in the Hull Daily Mail. Will he press on First Group the need to meet urgently to secure the continuing success of Hull Trains?

[Andrew Jones]

Following the last Transport questions, I asked First Group to take the issue forward. I am sorry if it has not actually contacted the hon. Lady, and I will pick this up with it, but I have already taken action as we discussed at the last Transport questions.

[Henry Smith (Crawley) (Con)]

May we have consideration of the Oyster ticketing system being extended south to Crawley stations such as Three Bridges?

[Andrew Jones]

We have launched a consultation on extending the very popular pay-as-you-go Oyster system to other parts of the south-east, and we are looking at the underlying principles for the rest of the country, too. As the public consultation document sets out, we are considering different options, and I would encourage anyone who believes their local station should be included in a pay-as-you-go zone to respond to the consultation, saying what they want and why. I will make sure that my hon. Friend’s views are part of that consultation.

[Several hon. Members rose—]

--- Later in debate ---

[Tom Tugendhat]

While we are thinking about unfortunate absences, will you join me, Mr Speaker, in thanking the Tonbridge line’s commuters for highlighting the problem of ghost trains on the Tonbridge to Redhill line? On 30 December, 36 trains were advertised but only 12 ran. Could the Minister possibly do something to ensure that the train operating companies actually run the trains that they advertise?

[Andrew Jones]

The Department monitors performance on a daily basis, and there is a range of actions that we can take when performance falls below agreed levels. I understand that performance on the Redhill to Tonbridge line has been impacted by various things, including speed restrictions, but I am able to tell my hon. Friend that performance on the line has been much improved since the start of the year, with 90% of services now arriving within five minutes of schedule.

[Richard Burden (Birmingham, Northfield) (Lab)]

After awarding the contract to Seaborne Freight, the Secretary of State boasted to the House that he was backing a British start-up. I tabled a written question to his Department asking whether it was his working assumption that any ships operated by Seaborne would operate under the British flag. Why were his Ministers, in the answer I received on 14 January, unable to give a straight yes or no answer?

--- Later in debate ---

[Luke Pollard (Plymouth, Sutton and Devonport) (Lab/Co-op)]

As well as announcing funding for the resilience work at Dawlish, will the Government also secure Dawlish-proof trains by moving the HSTs on to the CrossCountry franchise?

[Andrew Jones]

We are currently working to add more capacity into the CrossCountry franchise, and Network Rail is looking at how to tackle some of the engineering challenges posed by the impact of salt water on trains. That is work in progress.

East Midlands Rail Franchise

Andrew Jones Excerpts

Tuesday 12th February 2019 Written Statements

[The Parliamentary Under-Secretary of State for Transport (Andrew Jones)]

I wish to inform the House that the Secretary of State for Transport, has reached agreement with Stagecoach Group to continue to operate train services on the east midlands rail franchise. This direct award means that passengers from London St Pancras International to Northamptonshire, the east midlands, Lincolnshire, Staffordshire and South Yorkshire will continue to be served by East Midlands Trains until 18 August 2019. If required there is an option to extend this agreement by up to a further six rail periods.

East Midlands Trains has achieved good performance and passenger satisfaction levels during the time they have been operating the franchise and the new agreement will allow for a smooth transition into the next competitively- tendered franchise. In the forthcoming months I expect East Midlands Trains to deliver the following improvements as part of the new agreement:

investment of £150,000 on accessibility improvements at stations;

a simplified application process for Delay Repay.

As a minimum East Midlands Trains will also be expected to continue to deliver the following:

good performance levels and passenger satisfaction;

a mobile app which provides real time information on the operation of passenger services and enables customers to book and pay for travel;

a 4G wi-fi service and provide at least 15 minutes of free access per passenger journey on standard class.

This direct award will ensure a smooth transition from the current operator to the next franchise which is expected to deliver significant passenger benefits including more services and seats across the franchise, in addition to better facilities and further improved accessibility at stations.

[HCWS1322]

Smart Ticketing on the Rail Network

Andrew Jones Excerpts

Thursday 7th February 2019 Written Statements

[The Parliamentary Under-Secretary of State for Transport (Andrew Jones)]

In November 2017 in our strategic vision for rail, the Department for Transport set out ambitious plans for the roll out of smart ticketing across the network, with the aim of making it more convenient for passengers to buy and receive their train tickets. Over a year later, we have made real progress. Every franchise offers smart cards and/or barcodes and smart tickets are available across almost all of the network.

We now want to go further. Our ambition is to ensure that across regional and urban commuter areas smart ticketing can deliver the kind of pay-as-you-go (PAYG) structure that is used in London, to make journeys easier and smoother for passengers.

In the north of England, the Government have allocated £150 million to the multi-modal PAYG programme already being progressed by Transport for the North and, in London, Oyster ticketing already offers seamless PAYG travel. However, there is demand for PAYG to be deployed more widely, so today we begin consulting on the feasibility of delivering PAYG to an expanded area across the south-east of England. This is just a first step, and we will continue to work with other areas to assess opportunities to roll out PAYG.

The consultation offers the travelling public, business, local authorities and others the opportunity to have their say on how the system could operate and where it could extend to. We are aware that there are views on the appropriate ticketing systems and the way the fares structure could be organised to complement pay as you go travel; these issues are also being considered in the consultation.

[HCWS1307]