(6 years, 1 month ago)
Commons ChamberThe Budget announced the largest increase in capital spend in our economic infrastructure since the 1970s. Under this Government, investment in our economic infrastructure will be £460 million a week higher than under the last Labour Government.
The Chancellor has announced that he will be improving productivity by stopping inefficient public sector contracting—basically, abolishing the use of the private finance initiative and private finance 2. Can more be done to reduce the £240 billion bill to our country left by the Labour party?
Yes. We are ending the scandal of PFI that was created by the last Labour Government. Eighty-six per cent. of PFI contracts were signed by the last Labour Government—91% by value. In addition to retiring PFI we are creating a crack team, beginning in the Department of Health and Social Care, to look back at some of those old contracts and to clean out the stable left by the last Labour Government.
(7 years, 8 months ago)
Commons ChamberAs my right hon. Friend is not here, I am very happy to put dates in his diary for him, and I am sure that such a meeting will be achievable.
My right hon. Friend the Minister of State may well be trapped in the congestion around Newark on the A1 on his way back home to Lincolnshire. As you will have seen, Mr Speaker, according to the Office for National Statistics my constituents are the happiest of any in the country, but they are kept awake at night by the spate of terrible accidents on the A1 between Grantham and Retford. In the Minister of State’s absence, will the Secretary of State commission a full review of safety along the A1, particularly at Newark and through this dangerous stretch between Grantham and Retford?
I can tell the House that the right hon. Member for South Holland and The Deepings (Mr Hayes) wrote to me to explain that he would be absent today, and I detected in his letter a very considerable sense of regret that he would be outside this country rather than in this Chamber. Personally, I have found it difficult, but we have done our best to manage without him today, and we look forward to the right hon. Gentleman’s return at a subsequent session.
(7 years, 8 months ago)
Commons ChamberMy point is that competition will move, but it will not disappear from the market. Competition now takes place on the road; it will move from the roadside to the tender. I do not accept that competition disappears from the marketplace. I came to this place from a robust private sector background, where competition was the daily bread-and-butter activity, and I am sure that it can have a positive impact on customer service, innovation, price and so on.
The Minister kindly met my constituent John Marshall, who in addition to running a medium-sized bus company chairs the east midlands passenger transport organisation that represents other small and medium-sized bus companies in the region. He tells me that for him and his members, the question of compensation remains unanswered by the Bill. For the sake of clarity for bus operators, will the Minister say whether the Government intend that in the event that franchises are lost, no compensation will be or should be paid to any bus company in the UK?
We do not think that it will be a requirement to pay compensation, but an authority that goes down the route of developing a franchising model will of course be free to offer payments as it sees fit. It is not Government policy that such compensation will be mandatory.
Amendments 16 to 23, which were tabled by my hon. Friend the Member for North West Norfolk would require a franchising authority to be satisfied of, rather than to consider, certain matters when making its assessment of a proposed franchising scheme. That is a significant distinction. The assessment as set out in the Bill does not require the authority to pass certain tests or to prove that franchising would achieve certain outcomes. Instead, it reflects the standard approach for public sector investment decisions of requiring a view to be taken on the overall merits of the scheme.
That is a deliberate move away from the quality contract scheme process, under which no local transport authority has established a franchising system. A requirement for a franchising authority to satisfy itself that franchising will deliver certain outcomes risks raising an impossible hurdle. It would be difficult for authorities to satisfy themselves with certainty, as their analysis, by its very nature, will be based on assumptions and projections about the future. The amendments therefore risk making the Bill unworkable in practice. We agreed to deliver as part of our devolution commitments franchising powers that would be more usable than the existing quality contract schemes, and that is what the Bill does. I hope that, on the basis of the explanations I have given, my hon. Friend the Member for North West Norfolk will not press amendments 16 to 24.
In addition to requiring a franchising authority to prepare an assessment, the Bill requires the authority to obtain a report from a qualified auditor. In relation to the consideration of affordability and value for money, the report must set out whether the authority has used information and conducted an analysis of sufficient quality. The authority must publish the auditor’s report as part of its consultation process. Amendments 2 and 3 make it absolutely clear that the auditor appointed for this purpose must be independent. It has always been our intention that the auditor should be independent, but we wanted to make that absolutely clear and put it beyond any doubt. Amendment 3 imposes duties on the Secretary of State to issue guidance on the matters that a franchising authority is to take into account when selecting an auditor and on the criteria to be taken into account by an auditor in reaching a view on the relevant aspects of the authority’s assessment. An authority or auditor must have regard to such guidance.
I am happy to say that I am in total agreement with my hon. Friend the Member for North West Norfolk on amendment 2. He may be surprised to hear that I also agree with the principle behind amendment 25, but the nuances of how independence from the authority can be demonstrated are better addressed through guidance rather than on the face of the Bill. That is the thinking behind amendment 3. For example, amendment 25 would require an auditor to have five years of independence from the authority, which could be difficult to deliver. For the combined authority of Manchester, for example, it would have to be demonstrated that none of the bigger accountancy firms had dealt with any of the constituent authorities on any issue over the past five years, which could be quite a challenge. However, the principle of independence has absolutely been in the Government’s thinking since the beginning. I support that principle, which is behind my hon. Friend’s amendment, and that is why I hope that he will feel able to withdraw amendment 25.
(8 years, 10 months ago)
Commons ChamberTransport for the North is developing its plans for smart ticketing across the north, and the Government have provided £150 million to assist it with the project. I am a great supporter of smart ticketing, and I will be helping Transport for the North all the way.
T9. We in Nottinghamshire thank Gordon Brown for dualling the A46, but unfortunately, as was so often the way, the money ran out. The dualling ends outside Newark, and the gridlock begins. Will the Minister confirm that the dualling of the A46 from Farndon to Winthorpe is part of the Government’s plan, and that it could be brought forward in the event of slippage elsewhere?