Oral Answers to Questions

Andy McDonald Excerpts

Thursday 30th November 2017 Commons Chamber

[Chris Grayling]

If the hon. Gentleman wants to meet the Government to discuss the removal of the Barnett formula and the move towards needs-based allocation of funding across the piece for Scotland, I am sure that would be a very interesting discussion; but in this country over the past few years we have tended to follow the Barnett formula. Most recently, we have provided additional funding to Scotland through the allocations in the Budget. Money has been spent on capital investment in England and money is to be spent based on the Barnett formula in Scotland. That is the way we operate.

[Andy McDonald (Middlesbrough) (Lab)]

We learned yesterday that the east coast rail franchise will be terminated in 2020—three years early—potentially forfeiting billions of pounds in premiums due to the Treasury, yet the Secretary of State told the House that Stagecoach will meet in full the commitments it made to the Government as part of this contract. So, can he confirm that the full £3.3 billion due from Stagecoach-Virgin will be paid to the Treasury, in accordance with the terms of the original contract?

[Chris Grayling]

Every time a franchisee takes up a new contract it makes a parent company commitment to the Government. That commitment will be kept in full.

[Andy McDonald]

Can we get to the heart of this? Will the premiums of some £2 billion due under that contract covering the years 2020 to 2023 be paid? Will they be paid—yes or no?

[Chris Grayling]

Self-evidently, given my announcement yesterday that we would have the east coast partnership in place in 2020, there will be new arrangements in place in 2020. As I have said to the hon. Gentleman, every franchisee makes a parent company commitment before taking out the contract and we will hold that that commitment will be met in full.

--- Later in debate ---

[Chris Grayling]

We have finished the design of neither Crossrail 2 nor northern powerhouse rail. My focus right now is on the projects that are under way, including electrification across parts of the north of England and a £3 billion upgrade to the trans-Pennine routes. We are already seeing better investment in the north. When we see the final shape of Crossrail 2 and northern powerhouse rail, we will see what the answer to the hon. Lady’s question is.

[Andy McDonald (Middlesbrough) (Lab)]

On a point of order, Mr Speaker.

[Mr Speaker]

I will take the point of order as I understand it flows from questions, but it had better be a genuine point of order and it had better be extremely brief.

[Andy McDonald]

I am grateful to you, Mr Speaker. I seek your clarification. Not an hour ago, I raised the question of the £2 billion that was due from Stagecoach to the Treasury. The Secretary of State said yesterday:

“let us be absolutely clear for the House that as we bring the east coast franchise to a close and move to the new arrangements, no one will get any bail-out”.—[Official Report, 29 November 2017; Vol. 632, c. 344.]

He clarified that by also saying that every franchise makes a parent-company commitment before taking out a contract and will be held to that commitment, to be paid in full. That is £232 million—

[Mr Speaker]

Order. The hon. Gentleman must resume his seat. I am extremely grateful to him for his attempted point of order, but it is not a matter for the Chair.

[Andy McDonald]

rose—

[Mr Speaker]

Order. It is not a matter for the Chair. If he wishes to, the Secretary of State can respond, briefly. The truth is that the hon. Gentleman is dissatisfied with the position that the Government have taken. If he wishes to explore the matter further, which of course he can and, I dare say, will do, he can do so through questions, the use of the Order Paper or further debates, but he cannot do it any further now.

There is substantial pressure on time today, as a study of the Order Paper will demonstrate, but I thought the House would want urgently to express support for the victims of racism and bigotry and to denounce their purveyors.