Transport

Andy McDonald Excerpts

Monday 10th October 2016 Ministerial Corrections

[The Parliamentary Under-Secretary of State for Transport (Paul Maynard)]

This Government are making the biggest investment in our railways since the Victorian era, enabling more trains and longer trains to operate on many of our busiest routes. More than 563 new carriages are planned to enter service by the end of 2020.

[Official Report, 15 September 2016, Vol. 614, c. 1028.]

[Andy McDonald (Middlesbrough) (Lab)]

The service on Southern is officially the worst in the country, and passengers have endured appalling overcrowding for far too long. Removing hundreds of services a day has served only to exacerbate overcrowding on the services that survive. When will the Secretary of State bring to an end the misery of long-suffering passengers and intervene, or does he agree with the former Rail Minister, who effectively said that there are no circumstances that would warrant Govia Thameslink Railway being stripped of this franchise?

[Paul Maynard]

I am sure the hon. Gentleman will welcome the fact that more than two thirds of the services that were taken out of the timetable have now been put back in again. Our focus is on restoring normality to the service and putting the interests of passengers first. The service is improving on a regular basis, with more services returning to the full timetable, and I will focus on that to make sure that we get back to the full timetable.

[Official Report, 15 September 2016, Vol. 614, c. 1029.]

Letter of correction from Paul Maynard:

Errors have been identified in the responses I gave to the hon. Members for Kingston upon Hull North (Diana Johnson) and for Middlesbrough (Andy McDonald) during Questions to the Secretary of State for Transport.

The correct response should have been:

Oral Answers to Questions

Andy McDonald Excerpts

Thursday 15th September 2016 Commons Chamber

[Chris Grayling]

I am well aware of how strongly people in west London feel. I am also aware of how strongly people around Gatwick feel, albeit they are smaller in number than those around Heathrow. My hon. Friend is passionate about such issues and I can only assure her that the Government will have in mind the impact on noise and air quality and how that is dealt with as we reach a view on the Davies commission’s recommendations.

[Andy McDonald (Middlesbrough) (Lab)]

As a veteran of almost 12 weeks in post, I congratulate the right hon. Gentleman on his appointment. He is the second Secretary of State I have had the pleasure of shadowing. I welcome him and his new Ministers to their places and look forward to many discussions about transport in the months ahead.

A decision on airport expansion in the south-east is long overdue and has been made only more urgent by the vote to leave the European Union and the consequent need to demonstrate that the UK is open for business. Already twice delayed to avoid party political bickering inside the Tory party, there are now rumours that Ministers will be given a free vote. This is neither a constitutional issue nor a matter of conscience; it is a nationally critical infrastructure project. Will the Secretary of State tell the House the exact date on which he will confirm that the decision, whatever it is, will have the backing of the full Cabinet?

[Chris Grayling]

I am grateful for the hon. Gentleman’s words of welcome. He is underemployed in comparison with my previous shadow, who held two shadow Cabinet roles, so perhaps there will also be an opportunity for him to have additional responsibilities. I look forward to sparring across the Dispatch Box with somebody so much more experienced than I am in this role.

The decision is important for our nation’s strategic interests. I am new to this job, as the hon. Gentleman points out, and the Prime Minister is new to hers, so we want to ensure that we have done the necessary work and are properly informed before we take a decision. I did a lot over the summer to ensure that that was the case, including visiting the sites of all three proposals. I have carefully considered the issues and the Prime Minister is doing the same. We will reach a view shortly and will bring it to the House. It is right and proper that everyone in the House will be able to have a say in this important matter.

--- Later in debate ---

[Chris Grayling]

I am always delighted to work with my hon. Friend on improving the rail service and transport system in Cleethorpes. I fear that I probably will not be able to deliver on getting HS2 to go there.

[Andy McDonald (Middlesbrough) (Lab)]

HS2 is intended to be a jewel in the crown of British infrastructure, but as was revealed in the Public Accounts Committee’s report, it is losing some of its lustre. To be at this stage and still not know how much HS2 will cost, what the route will be and when it will open is unacceptable. The Government are quite clearly losing their grip on the project. Will the Secretary of State take this opportunity to say why his Department has failed to set a workable, realistic timetable for HS2 Ltd, and will he give a guarantee to deliver an entire high-speed railway?

[Chris Grayling]

I do not want to start my relationship with the hon. Gentleman on a bad note, but I have to say that that is a lot of nonsense. We have a proposal for an innovative railway line that is completing its journey as a hybrid Bill through the Lords, and we will start work next year. We aim to deliver the first stage, as planned, in the middle of the next decade, and later this autumn, we will set out the remaining route in detail. I am proud to do that for this important project for our nation.

--- Later in debate ---

[Paul Maynard]

We had a very productive meeting with my hon. Friend last week. She is a doughty campaigner on behalf of that line and I will continue to press for further advances on the issue, as she asks.

[Andy McDonald (Middlesbrough) (Lab)]

The service on Southern is officially the worst in the country, and passengers have endured appalling overcrowding for far too long. Removing hundreds of services a day has served only to exacerbate overcrowding on the services that survive. When will the Secretary of State bring to an end the misery of long-suffering passengers and intervene, or does he agree with the former Rail Minister, who effectively said that there are no circumstances that would warrant Govia Thameslink Railway being stripped of this franchise?

[Paul Maynard]

I am sure the hon. Gentleman will welcome the fact that more than two thirds of the services that were taken out of the timetable have now been put back in again. Our focus is on restoring normality to the service and putting the interests of passengers first. The service is improving on a regular basis, with more services returning to the full timetable, and I will focus on that to make sure that we get back to the full timetable.[Official Report, 10 October 2016, Vol. 615, c. 2MC.]

Govia Thameslink Rail Service

Andy McDonald Excerpts

Wednesday 13th July 2016 Westminster Hall

[Andy McDonald (Middlesbrough) (Lab)]

It is a delight to serve under your chairmanship, Ms Ryan. I congratulate the hon. Member for East Worthing and Shoreham (Tim Loughton) on securing this crucial debate and on his tour de force. We were all impressed by what he had to say.

After little more than two years, GTR’s operation of the Thameslink, Southern and Great Northern franchise has been an unmitigated disaster, with the targets on punctuality and reducing delays breached long ago and followed by a series of inadequate compromises between the Department for Transport and GTR. The views of passengers, and their intense dissatisfaction with GTR’s performance, are being managed rather than met by the Government. There is insufficient protection of the passenger and public interest in the reliable operation of these vital rail services, which are essential to both the national economy and the millions of passengers who rely on them.

GTR’s tenure has led to the worst punctuality ratings of any train operator in the country; a doubling in the percentage of trains that were cancelled or delayed by more than half an hour, from 3.9% to 7.4% of services which, again, is worse than any other operator in the last reporting period; an average of 50.9% of trains on time, one of the worst ratings in the country; and one in three Gatwick Express trains running late. The list goes on.

The latest Transport Focus statistics make for dire reading for GTR and the Government, with passenger satisfaction in decline to an unacceptably low level. Only 35% of passengers on the Southern metro and Sussex coastway lines regard the service as value for money, following the introduction of the remedial plan.

[Jeremy Quin]

Will the hon. Gentleman give way?

[Andy McDonald]

Will the hon. Gentleman forgive me if I do not? I want to give the Minister time to respond, and she has little enough.

As Members who represent constituencies on these lines know only too well, all these performance failures were visible on Southern GTR services well before any dispute with the rail unions over driver-only operation and prior to Southern services entering the Thameslink, Southern and Great Northern super-franchise in July 2015. We have also seen the operator of last resort, Directly Operated Railways, scaled back within DFT and removed from the Rail Delivery Group.

GTR is widely recognised as the worst train operator in the country, following a sustained period of cancellations, lateness, worsening industrial relations and failed planning that makes a mockery of the Government’s regular sermons on the benefits of rail privatisation. There is cross-party consensus on the need for GTR to be stripped of the franchise: my hon. Friend the Member for Streatham (Mr Umunna), the hon. Members for Brighton, Pavilion (Caroline Lucas), for Lewes (Maria Caulfield) and for Croydon South (Chris Philp), the right hon. Member for Arundel and South Downs (Nick Herbert) and many others have all called for that. Even GTR acknowledges that it could have the franchise removed if it fails to deliver on targets in the franchise agreement. In this increasingly fractious affair, why is it only the Government who are not contemplating removing the franchise or even retaining the threat as a means of improving performance?

The Opposition would like to see our rail services back in public operation, but to ignore the clear evidence of the essential service protection that the public sector provides through the operator of last resort is entirely reckless. Perhaps GTR’s accounts shed more helpful light on the extent of its relationship with DFT and the purpose it serves. Under a section entitled “Political Risks”, GTR states:

“It is not anticipated that any significant political change in direction would affect the existing contract. The company’s senior management continue to work closely with the DFT to ensure consistency of messaging to try to manage stakeholder expectations.”

That may be standard language to reassure shareholders and investors, but it also strikes me as evidence of an unhealthy relationship in which the Government are committed to preserving the GTR franchise, whatever the cost to passengers, staff or the taxpayer. The taxpayer is paying GTR an estimated £1.17 billion every year in management fees for this dysfunctional service, and that does not include the huge levels of investment in track and stations through publicly owned Network Rail every year, including the redevelopment of London Bridge.

Neither sickness levels nor industrial action are responsible for the misery that Southern commuters in particular have contended with for more than a year now. The decline in industrial relations is a direct result of the close relationship between the Government and GTR. When senior civil servants are quoted at public meetings stating to passengers that they “have got to break” rail unions, as my hon. Friend the Member for Nottingham South (Lilian Greenwood) said, the problem is entirely of the Government’s making.

Labour is clear that the Government’s failure to include meaningful penalties in the franchise is at the root of GTR’s declining performance. We call on the Government to strip GTR of the franchise. That is the only way in which sustainable improvements in performance can be achieved. The breach and default levels for service cancellations under the original franchise agreement with Govia have been consistently exceeded, and what we have seen in response is the imposition of a remedial plan cooked up between GTR and the DFT in February this year and kept away from prying eyes for three months. That raised breach and default levels for service cancellation, meaning that passengers would have to cope with up to 31,000 fewer services.

The Minister was absolutely right when she said in a debate on Southern in this Chamber almost exactly a year ago that high levels of delay and cancellation were

“an unacceptable burden on working families.”—[Official Report, 8 July 2015; Vol. 598, c. 105WH.]

That burden is worse today, and it is the direct result of the Government’s handling of this franchise—indulging GTR and failing to respond to consistent failure with removal of the franchise.

Let me turn quickly to the current dispute. Even the industry-funded Rail Safety and Standards Board has acknowledged that driver-only operated services

“may increase the likelihood of an event occurring or increase the severity of its consequence.”

The issue is whether risks to passengers increase when things go wrong if passengers no longer have a binding safety guarantee from a second member of on-board staff who is fully trained in safety-critical procedures. GTR’s proposed new role of an on-board supervisor will not be that of a guard or a conductor; it will lack critical safety training in carriage and passenger protection in the event of an emergency incident.

GTR and the Government have also claimed that there will be no deskilling or dumbing down as a result of the GTR proposals to extend DOO on Southern services, yet the Minister told members of the Transport Committee on Monday that no train that currently has a second person on board would lose that person, and that she would ensure that the safety-critical role is maintained. We hope she will confirm today that that safety-critical role will be maintained over the life of this and future franchises. Central to that is retaining the 12-week training requirement for the second member of train crew—whether that is a guard, a conductor or an on-board supervisor.

I note that the RMT offered last week to suspend its industrial action for three months, as long as GTR suspends the DOO extension plans for a similar length of time. It surely makes sense now for the Minister to invite the RMT to meet her at the earliest opportunity to discuss the terms of a settlement with GTR that would also apply to future franchises. That should allow both parties time to reach a conclusion to this dispute, if not to the performance problems that have dogged GTR since its inception, which we believe can only be remedied by removal of the franchise.

--- Later in debate ---

[Claire Perry]

It was not nearly good enough, but that was 10 percentage points up over the last six months. There was every view that performance was returning to the place where we needed it to be.

Since then—I will come to the issue of the industrial action—all bets are off. When people simply do not know how many staff are rostering in a particular depot, particularly the Brighton depot, where so many trains start and finish, it is impossible to run a reliable service. I have been to London Bridge and Victoria stations many times and travelled on the trains and I have been ashamed to be the rail Minister. I suggest that successive rail Ministers over many years in many Governments should share that sense of shame.

There seem to have been four fundamental failures in the industry that mean that when things go wrong, it is really hard to recover. It is the customers—the passengers who rely on the train services—who suffer. First, I submit to the House that there has been a disdain for people—for passengers—at the heart of the railway for decades. I have shared this anecdote with the House previously: a former very senior member of Network Rail said to me that the problem with the timetable is that the customers mess it up. Think about what that implies about what that person’s view of their job was: to run a system, not to move people.

Crowding is not really costed in any of the economic measures that successive Governments have used. There has just been an assumption that people will continue to cram on. It is more valuable to put a train on a long-distance service, where there is a discretionary choice of travel, than to relieve crowding on an overground service around London. That seems to me to be perverse.

Investment has been entirely focused on engineering improvements and almost never on reduction in delay. Why do we still have this “leaves on the line” problem every year? By the way, no one has ever calculated the economic consequences of leaves on the line. Surely it is not beyond the wit of our finest metallurgists to solve that problem, yet we just accept it. We plough on and look to shave five minutes off long-distance journeys.

Thameslink will deliver some significant benefits for people travelling through London. There are brand new trains and wonderful new stations such as Blackfriars, which nobody ever talks about. It is a wonderful station delivered without a trace. Nevertheless, the human cost of the Thameslink work on the travelling public was almost forgotten. I was not the Minister at the time and I do not even know under which Government it was planned, but a man came up to me at London Bridge station in tears and said, “You’re doing this so people can get from Cambridge to Brighton without disruption. That’s great, but I just want to get home to see my kids.” There is something flawed with the industry, because it does not value those people’s experiences.

The second failure is that, as Members know, the industry has a highly complicated structure. We have Network Rail, which is in a much better place now, post the Hendy review and Shaw changes. It has made some amazing hires. We have a franchising system that in some cases delivers huge benefits but in other cases does not. The problem with franchising is that if it is a very short-term franchise, nobody has an incentive to invest in industrial or passenger relations. Why would the staff care when the name on the nameplate changes every seven years?

[Andy McDonald]

They do care.

[Claire Perry]

They do care, but why would they feel an allegiance to a company the name of which changes every few years? The staff on the frontline care in extreme amounts, and we are all very grateful for that.

[Andy McDonald]

Will the Minister give way?

[Claire Perry]

No, I am going to continue.

Thirdly, we have an investment structure that is broken. The Government step in over and over again to fill the gaps and to buy rolling stock. By the way, the profits in the rail industry mostly accrue to the rolling stock leasing companies—the ROSCOs. If Members look at the shareholder structures to see where the profits are, they will see that they are with the rolling stock companies, not the franchise operators. GTR’s margin this year is going to be around 1.5% on this franchise. There is something structurally wrong with the financial structure of the industry.

The fourth and final problem is that the contractual levers are really poor. I have been asked repeatedly, “Why don’t you just take the franchise back?” The reason is that I cannot. GTR is not in breach of its franchise contract right now.

Oral Answers to Questions

Andy McDonald Excerpts

Thursday 30th June 2016 Commons Chamber

[Mr McLoughlin]

I will certainly consider the representations that the hon. Gentleman has made to see whether that is compatible with the overall rules that we want to introduce in public service obligations.

[Andy McDonald (Middlesbrough) (Lab)]

Does the Secretary of State agree that the sustainability and development of regional airports could be much enhanced by the increase in connectivity inherent in the additional capacity plans for the south-east? Given that such connectivity will deliver economic growth throughout the UK, what assessment has he made of the efficacy of any engagement with the regional airports in ensuring that once a decision is made, the proposals in the recommended option of Heathrow will deliver the desired development of our regional airports?

[Mr McLoughlin]

I welcome the hon. Gentleman to his position. I have been in this post for four years, and he is the fifth shadow Secretary of State I have seen and, I think, the 10th person to hold the Labour transport brief in nine years. I congratulate him on that. I also thank the hon. Member for Nottingham South (Lilian Greenwood) for the way in which she conducted herself while she was doing the job. Although at the moment she is sitting on the Back Benches, I am sure that that is only a temporary measure while certain things are sorted out.

If I may now come to the question—I have almost forgotten what it was—I think we all agree that regional airports play a vital role in connectivity. One of the issues about regional airports—this was alluded to in a previous question—is their accessibility to the London airport system. We have to consider such issues and some later questions may address them.

--- Later in debate ---

[Mr McLoughlin]

We are now back on familiar ground and I do not need to repeat what I said earlier. The simple fact is that I am very proud of the investment that this Government are putting into infrastructure. Infrastructure investment is 50% higher than it was during the last Parliament, and it is much larger than the amount put in by the previous Labour Government, so this Government are very committed to infrastructure investment. The hon. Lady talks about airport capacity, but there were airport capacity issues during the 13 years her party was in government, when it did nothing.

[Andy McDonald (Middlesbrough) (Lab)]

With the political and economic uncertainty following last week’s referendum vote, infrastructure projects have become more, not less, important for the future of this country. That is particularly true of our airports, which will have renewed importance in ensuring that the UK is a global, outward-looking trading nation. The comments made by the Prime Minister and, indeed, by the Secretary of State today have cast doubt on that. Does the Secretary of State not accept that kicking this decision into the long grass yet again is simply utterly unacceptable?

[Mr McLoughlin]

We are accused of kicking something into the long grass, but I have said that I hope to see a decision by the end of the year, and Opposition Members have not yet expounded which option they actually support.

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[Mr Speaker]

I am extremely grateful to the Secretary of State.

[Andy McDonald (Middlesbrough) (Lab)]

As my hon. Friend the Member for Hove (Peter Kyle) said, Southern rail passengers are suffering the worst delays in the country and its staff are locked into an increasingly bitter industrial dispute. All those who work or rely on this failing service deserve much better. Does the Minister not think that by ruling out the cancellation of the franchise and by winding down the operator of last resort, Directly Operated Railways, the Department has no plan B and has effectively forfeited the chance to place any meaningful pressure on the company to improve performance?

[The Parliamentary Under-Secretary of State for Transport (Claire Perry)]

The hon. Gentleman only needs to look at the share price performance of the owning group to see that considerable pressure is being put on the company by the markets, by customers and by my Department. In my view, changing the franchise would do nothing. Everybody has to work together. There is a highly experienced management team already in place. We have an investment programme that is coming to an end. The first major part of London Bridge will open this summer. I urge everyone involved, including the union bosses who are taking out their members on completely unjustified action, to sort this out for the benefit of the hard-pressed commuters, who just want to get to work and get home to their families.

West Coast Rail Franchise

Andy McDonald Excerpts

Tuesday 14th June 2016 Westminster Hall

[Andy McDonald (Middlesbrough) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Brady. I thank the hon. Member for Carlisle (John Stevenson) for securing this crucially important debate. It is a pleasure to follow the hon. Member for Ross, Skye and Lochaber—

[Drew Hendry]

Inverness, Nairn, Badenoch and Strathspey.

[Andy McDonald]

I beg your pardon. I am going to talk about HS2 in my speech—it has been touched on already —

[Mr Graham Brady (in the Chair)]

Briefly.

[Andy McDonald]

Very briefly.

May I also briefly pay tribute to Mr Neil Caulfield, who tragically passed away last week? He was a wonderful Clerk to the HS2 Committee. He was wonderfully helpful and professional, and we will miss him. I pay tribute to him and to all the Clerks who support us through this work.

The west coast main line is the backbone of Britain’s railways. It services great cities and towns in England, Wales and Scotland. The issues raised today are vital to so many passengers, as more than 34 million journeys a year are made on the service and almost 7 billion passenger miles are travelled. As the hon. Member for Carlisle said, the west coast franchise, which is currently operated by Virgin, ends in April 2018, and the Department is running a competition to find an operator for the next franchise. Before looking to what the Government should seek from the operator of the next franchise, I would like to secure assurances from the Minister that there will be no repeat of the franchising fiasco of 2011-12. The Department conducted a competition and announced that FirstGroup had been awarded the franchise before having to cancel the competition and subsequently award it to Virgin at a not insignificant cost to the taxpayer. That caused a great deal of confusion. The railway industry needs to be able to have confidence in the mechanisms of contracting. We simply cannot have a recurrence of that debacle.

The hon. Gentleman mentioned Euston station, which is considered to have particular problems. We have heard that it is often overcrowded and difficult to navigate. It is awkward to buy tickets, and there is a short time between announcement and departure. People speak of the unseemly scrum once the information appears on the screens. In its February 2016 report, “InterCity West Coast rail: what passengers want”, Transport Focus recite passengers describing the experience as “stressful and unpleasant”. The national rail passenger survey of west coast passengers in part reflects that, with a rating of 11 percentage points below average.

The good news for passengers at Euston is that it will be redesigned to become a modern, easy-to-navigate, integrated station. The bad news is that things will probably get worse before they get better. I am pleased that the Government have given assurances to Camden Council about the £2.25 billion redevelopment of Euston proposed by Labour, consequent on the passage of the High Speed Rail (London – West Midlands) Bill. When the station is completed, passengers will experience less crowding and improved connectivity among rail, bus and taxi services. Routes for walking and cycling through the local area will be created. That will go some way to addressing passengers’ concerns, but it is often the case with major station improvements—we see this at the moment at London Bridge—that passengers are significantly disrupted and inconvenienced during the period in which the work is taking place. I would like some assurances from the Minister about those matters.

Sir Jeremy Heywood, the Cabinet Secretary, is currently analysing HS2 to trim costs and gauge whether the £55 billion project can keep within budget. There have been rumours that the Government might entertain plans to alter the route of HS2 or their plans for an integrated Euston station, and instead have the high-speed trains run only to Old Oak Common. That would put a great deal of stress on Crossrail, which was not planned to include that extra capacity. I must admit that I find it strange that, after Report and Third Reading, and given the exhaustive and exhausting legislative process for HS2 to date, the Government are again having to re-assess it. Although close attention to and scrutiny of cost is absolutely vital, I am concerned that what appears to be a comprehensive review of key issues within HS2 runs the risk of undermining confidence in the Government’s capacity to progress the project as planned and agreed. Will the Minister clarify what Sir Jeremy is considering? If the plans for an integrated Euston station are still on track, what will be done to mitigate the impact on west coast services, given that the number of platforms available at Euston to the west coast service will reduce from 18 to 11? Once it is up and running, HS2 will provide extra capacity, relieve congestion on the line and improve passenger experiences. Those are some of the many benefits of HS2.

The hon. Member for Carlisle spoke about fares and ticketing, which are a common source of frustration for passengers, who too often feel they get poor value for money from train operating companies. One of the consequences of privatisation is that we were left with the most expensive and confusing ticketing structure in Europe. Many passengers struggle to understand fare structures and pricing; the difference in cost between tickets strikes people as illogical. The discrepancy between fares, especially if someone needs to travel at short notice—as might be the case for a family funeral—often leaves passengers feeling that the train operating companies have ripped them off.

Compared with the national average, west coast performs relatively well on value for money—however, that is against an exceedingly low baseline of just 48%. Frustrations over fare structure and pricing are common passenger complaints. There is more that the next franchise holder can do in that regard, including simplifying fare structures, making the purchasing experience less complex and more transparent, lessening the cost discrepancies between similar journeys, and allowing passengers to find the best tickets available for their journey.

[Mr Jim Cunningham]

One of the reasons why the fare structure is complicated and expensive is that, over the years, successive central Governments have gradually reduced the subsidy for fares.

[Andy McDonald]

My hon. Friend makes an excellent point. There is always a balance between fares and subsidy, and Governments of every colour have to struggle with that. On that very point, there are certainly improvements to be made, but I fear that as long as the Government persist with an exclusively privatised rail network, the feeling that passengers are receiving poor value for money will persist, and understandably so. Virgin runs one of the better services in the country on the west coast, but it is a poor comparison with our recent experience of when the public sector was presented with the opportunity of running passenger services. We need only to compare Virgin’s receipt of £2.5 billion in direct subsidy, and the £500 million it paid out in dividends between 1997 and 2012, with the performance of Directly Operated Railways between 2009 and 2014, which ran on a much lower subsidy. Under public operation, the east coast returned the highest level of premium to the Government—over £1 billion—while achieving passenger satisfaction ratings that surpassed all other long-distance operators. The public are absolutely right when they say they believe that rail should be in the public sector—they have good reason to do so.

Commuters and passengers desire free and decent wi-fi on trains; it is an important matter for them. We often get free wi-fi when we buy cup of coffee, but people who spend a fortune on a train ticket may have to rely on an unreliable wi-fi service. A good service is clearly beneficial for those people—both for leisure purposes and for conducting business as they travel. One hopes that attention will be paid to that.

The hon. Member for Carlisle spoke about the potential for a residual value mechanism, which would reward train companies for investing in things such as stations, where the return on their investment would go beyond the period of the franchise. I think the hon. Gentleman hoped that that would be a way to ensure better long-term thinking and investment, which is a reasonable point, but I caution against over-eagerness for the idea, because improving stations should not depend only on train companies deciding that there is an overwhelming case for them to make significant profits. Train operators do not have a great record of investing their own capital in stations, and increasing residual value mechanisms might make it harder for a national public operator or local authorities to improve facilities later.

The franchising system has failed to deliver clean, safe, accessible and properly staffed stations in too many areas, and tweaking the arrangements is not the best or most cost-effective way of making services better for passengers. I trust that the Minister will deal with the issues and concerns mentioned and, with that, I bring my remarks to a close.

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[Claire Perry]

That is an important question. We can have as-good-as-we-can-get connections right now, but there are troughs and blind spots, and we are working with industry, on a TOC-by-TOC basis, to improve those connections, so there are no not spots along train routes.

HS2 will clearly have a major impact on this line. It will add much-needed capacity and will have a very positive impact for customers who are looking to travel quickly between cities. It is of course a vital programme. We will look to appoint franchisees, both in this competition and in the west midlands, that can work with the HS2 operators in the run-up to HS2 opening, and we want the competitions to procure franchisees that can work with HS2 and Network Rail during the construction works. I have to say that the lessons learned from London Bridge are scarred on my ministerial portfolio.

[Andy McDonald]

Where?

[Claire Perry]

They are well concealed. No one correctly estimated quite how tough it is to do major improvement works on a very crowded and highly operational railway. Lessons have absolutely been learned, and will be applied in the works at Waterloo this summer on the south west franchise, where we are bound and determined not to make mistakes. The prize will of course be a wonderful new station, I hope with a beautiful arch somehow reinstated, and many more services. That will be a prize worth having, but we are absolutely bound and determined to avoid the disruption that we saw at London Bridge.

I slightly disagree with the view of the hon. Member for Middlesbrough that residual value mechanisms are not really relevant, because if a public company or public authority wants to invest in something, it wants to ensure that it will get a return from it on behalf of taxpayers. That is only right and proper. My hon. Friend the Member for Carlisle is right that that has been a barrier to investment in franchising. We have developed a residual value mechanism in the Department, and it has been used in the latest competitions. I accept that it is not quite what he is looking for, and I am always happy to meet him and have that discussion, but we want to use that mechanism in the upcoming west coast franchise because we want to ensure that the stations along the route and other assets, such as smart ticketing, are supported.

I want to mention smart ticketing before I conclude. It is a passion of mine to get rid of the tangerine tickets, which look like something out of the 1970s, and move to something that far better suits what customers are using today: mobile technology. People will have seen that we have put those requirements into franchising, and we will do so in this case. The adoption of smart ticketing is moving very quickly in this country.

[Andy McDonald]

I do not think that the Minister has mentioned Sir Jeremy Heywood’s review of the potential use of Euston and Old Oak Common.

Oral Answers to Questions

Andy McDonald Excerpts

Thursday 28th April 2016 Commons Chamber

[Andy McDonald (Middlesbrough) (Lab)]

Some 80% of passengers entitled to a refund when their train is cancelled or delayed make no claim, largely because train operating companies make claiming too difficult. To improve passenger compensation arrangements, the Office of Rail and Road recommended that the provisions of the Consumer Rights Act 2015 should apply to rail. This month, however, the Government have further delayed introducing that by another year. Why should train operating companies have such beneficial compensation arrangements, while the Government intervene to delay giving passengers their right to compensation?

[Claire Perry]

The question that comes to mind is: why did the hon. Gentleman’s Government do nothing about this for 13 years? It took a Conservative Government—[Interruption.] I encourage the hon. Gentleman to stay focused on the facts. Delay repay compensation levels have increased eightfold over the past five years, but there is far more to do. The actual amount of compensation available is more generous in this country than in almost any other country in Europe, but I want to reassure him about the CRA exemption. The industry had argued for a permanent exemption, which I found completely unacceptable. We have given the industry time to adjust to make sure it gets this right.

High Speed Rail (London – West Midlands) Bill

Andy McDonald Excerpts

Wednesday 23rd March 2016 Commons Chamber

[Mr Goodwill]

I thought I just said that this power is already available and therefore this is a superfluous new clause and we do not need it to give us these powers. I very much doubt Opposition Members will agree with my view that nationalisation of the railways is not the way forward, so stuck as they seem to be in the 1970s, but I hope I may have provided sufficient explanation as to why this power is not required.

We have given consideration to the other proposed new clauses and amendments. Although I understand the importance of some of the issues raised, I do not believe they belong in the Bill, as they have already been considered during the Select Committee process. To conclude, in order not to take up any more time than is necessary, I hope that right hon. and hon. Members will be able to support the inclusion of new clause 19 and amendment 15, but I urge them to not to press the other proposals, which I do not believe are required.

[Andy McDonald (Middlesbrough) (Lab)]

I am pleased to be able to contribute to this important debate and play a part in this Bill’s progress. We fully appreciate the importance of this vital piece of infrastructure and the benefits it will bring to our country for generations to come. It is not common to find such consensus in this House, but I am pleased that both the Government and the Opposition understand the need for this high-speed railway. HS2 was, of course, the brainchild of the previous Labour Government, but I readily acknowledge the work that the current Government have done in progressing the project. It is to be very much welcomed for the country that we have such consensus across the House on such important national infrastructure projects.

In that same vein, I shall discuss new clause 19, which stands in the name of the Minister, as well as in my name, those of some of his colleagues and that of my hon. Friend the Member for Nottingham South (Lilian Greenwood). It deals with vocational qualifications.

[Sir William Cash (Stone) (Con)]

Just in case it might be thought that there is not still entrenched opposition to these proposals, may I say, speaking not only for myself but for many of my colleagues and for people in Staffordshire, where we get no benefit from this scheme at all, given the damage it is doing to our countryside, that I wish to register opposition to this in its entirety?

[Andy McDonald]

I think I used the word “consensus” not “unanimity”. I sincerely thank the Minister for his constructive approach to this issue and for adding his name to mine by way of support. There is agreement across the House that both jobs and skills are a core part of the case for HS2, and I note that the recent Shaw report calls for much deeper strategic engagement of trade unions across the rail industry. Accordingly, may I take this opportunity to congratulate the Minister and HS2 Ltd for their positive engagement with the TUC in securing an agreement to make sure that trade unions, HS2 and its suppliers work together to maximise HS2’s economic and labour market potential?

[John Redwood (Wokingham) (Con)]

Is the hon. Gentleman at all worried about the possible job impact on the existing railway, because most of the passengers for this line are going to come from journeys that would otherwise have been made on existing trains? Presumably, there will therefore be a decline in fares, revenue and job opportunity on the existing railway.

[Andy McDonald]

The right hon. Gentleman misses the point: this is about having a positive impact on capacity issues. That is the singular and most important purpose of this development.

In the words of the magnificent Frances O’Grady:

“It is clear that trade union engagement is vital to ensuring that HS2 is delivered to time and to budget—and that it is delivered in a manner that reflects the best of socially responsible development.”

The agreement contains the commitment to pay the voluntary living wage—and the voluntary London living wage—and to offer a minimum number of apprenticeships and workforce skills development, among other things. The agreement is an excellent example of how industrial relations should be approached from the outset in projects of this magnitude, and indeed throughout the construction industry, and I hope that it can be the template for good practice throughout industry. The construction of such infrastructure projects places demands on a nation to provide the necessary skilled workforce, creating opportunities for people, and younger people in particular, to equip themselves with not just the vocational qualifications to assist in the construction of this railway, but the tools necessary to forge careers that will be of benefit to both themselves and the nation long after the completion of HS2. Labour Members welcome the fact that, following on from the success of the Kings Cross construction skills centre, a National College for High Speed Rail will be located both in Birmingham and Doncaster, providing specialist vocational training to the next generation of engineers working on HS2 and beyond. We also welcome the fact that HS2 Ltd will provide £4.1 million towards a Euston construction skills centre.

[Andrew Bridgen (North West Leicestershire) (Con)]

I, too, am sorry to break the cosy consensus of the two Front-Bench teams, who seem to be conspiring to spend possibly £100 billion of taxpayers’ money on what I believe to be a white elephant. Does the shadow Minister have no concern at all about supporting the Government on a major infrastructure project where the cost-benefit ratio is as low as £1.40 for every pound spent?

[Andy McDonald]

Let me clarify that this is not about a cosy consensus; it is about rigorous examination. There has been a forensic examination of this matter through a lengthy Select Committee and a Bill Committee. The hon. Gentleman is completely wrong about the cost-benefit ratio. The correct figure is 2.3:1.

[Andrew Bridgen]

rose—

[Andy McDonald]

I have already given way and I must now make some progress.

The Government estimate that as many as 2,000 apprenticeship opportunities will be created by HS2, and there will be about 25,000 people employed during its construction. That is welcomed by Members from all parts of the House. Because of the importance of the creation of vocational qualifications in connection with HS2’s construction, we feel it is appropriate that Parliament is given proper oversight on progress in this regard. That is why we tabled new clause 19, which will impose a duty on the Secretary of State to prepare an annual report on vocational qualifications obtained in each financial year in connection with HS2 construction. It seems to us to be eminently sensible for the Secretary of State to report annually on the progress of the creation of vocational qualifications, and I am grateful that the Government have accepted that the new clause should be part of the Bill.

[Iain Stewart (Milton Keynes South) (Con)]

I support the new clause. Will this annual report capture people gaining qualifications not only through HS2 Ltd and the key construction companies, but further up the supply chain?

[Andy McDonald]

The new clause is focused principally on HS2 Ltd, but the hon. Gentleman makes a very important point. I am sure the Minister and the Secretary of State are listening intently to him. The intention must be to embrace all those within the supply chain.

Amendment 15 would make a small change to clause 48. It simply seeks to insert a requirement that as and when the Secretary of State considers that there is an opportunity for regeneration or development, and land is to be acquired compulsorily for that purpose, regard be had to the relevant development plans that obtain in respect of that particular location. I am grateful that such a modest and reasonable amendment finds favour with the Government.

New clause 21 deals with financial reports. It would impose a duty on the Secretary of State to prepare an annual report on expenditure in each financial year. Each report would contain details of any overspend or underspend against the budget for such expenditure for the year, as well as the likely effect on the total budget.

--- Later in debate ---

[Sir Simon Burns (Chelmsford) (Con)]

rose—

[Andy McDonald]

I will make some progress.

[Sir Simon Burns]

Come on!

[Andy McDonald]

No, I will crack on.

[Several hon. Members rose—]

[Andy McDonald]

I will give way in a moment.

According to the McNulty report, the fragmentation of our rail network has left us with an efficiency gap of between 30% and 40% compared with other European networks, which means that the money that should be used to address the cost of travel and to fund much needed investment is needlessly wasted.

[Sir Simon Burns]

I am very grateful to the hon. Gentleman for giving way. We had this litany from him, which was put just as eloquently, upstairs in Committee. I wish to ask him this: first, if the privatisation of the railways was such a disaster and disservice to the travelling public, why do we now have record levels of people using the railways; and, secondly, why did the last Labour Government not renationalise it during their 13 years in power?

[Andy McDonald]

I am happy to answer the right hon. Gentleman. It was because the last Labour Government put record investment into the railways and made it the safest railway in Europe. We were clearing up the mess of that botched privatisation of Railtrack, which cost people’s lives. We made the network safe.

We have been left with a ticketing system that is the most expensive and confusing in Europe. Indeed, commuter fares are up by a quarter since 2010, having risen three times faster than wage growth. What the public clearly do not accept is that private and many foreign state-owned companies receive subsidies from the UK taxpayer and make significant profits at the expense of rail passengers.

[Karen Lumley (Redditch) (Con)]

Will the hon. Gentleman give way on that?

[Andy McDonald]

I will carry on, because I know that people want to contribute to the debate.

In illustrating the benefits of publicly owned operators, one could hardly ask for a better example than the recent east coast main line. The last Labour Government took the important step of bringing that back into public operation after the private operator reneged on its obligations in 2009. East coast proved itself to be one of the most efficient operators, returning more than £1 billion to the taxpayer in premium payments as well as investing every penny of profit back into the service. In addition, fares were kept down in real terms in 2014 at a time when no privately run franchise took the same step. East coast had record passenger satisfaction and its engagement with the workforce was an unparalleled success.

[The Secretary of State for Transport (Mr Patrick McLoughlin)]

I am sure that the shadow Minister will welcome the new service that will be starting from Middlesbrough as a result of the Virgin franchise, which will serve his constituents and provide new trains.

[Andy McDonald]

Of course I welcome it; it would be churlish not to. Why would I not welcome that? It does not mean that the system is right, or, for goodness’ sake, that the trains are getting to the right places.

It is difficult to see how east coast’s brilliant delivery for the taxpayer and for the commuter could be seen as a failure, or in any way undesirable. It simply does not make any sense for the UK taxpayer to subsidise foreign state-owned companies so that citizens of Germany, Holland, France and elsewhere can enjoy cheaper and superior services.

Quite simply, the rejection of even the possibility of public ownership is driven by an outdated ideology and is totally out of kilter with the views of a large majority of the public—including many Conservative voters—which is why I am so pleased that Labour is committed to a publicly owned service that puts the passenger first rather than the profits of private or foreign state-owned companies, as is currently the case.

[John Redwood]

rose—

[Andy McDonald]

No, I am going to move on.

We have heard the Prime Minister, the Chancellor, the Secretary of State for Transport and others speak in glowing terms about how High Speed 2, when completed, will be a proud national achievement, and I completely agree with that. The scale of the project, the amount of talent that will be utilised in its design and construction, and the dedication over the years ahead will be a mark of pride, and represent a proud feat of British engineering and ingenuity.

It is my contention that if we, as a nation, are good enough to build a world-class high-speed railway, then we are good enough to run it, too. From the initial privatisation to the Government’s re-franchising of the east coast main line, Tory rail policy has always been far too focused on its “private good, public bad” ideology. However, new clause 20 would not require the sort of Damascene conversion that we witnessed from the right hon. Member for Chingford and Woodford Green (Mr Duncan Smith) earlier this week. It asks only that the Government keep an open mind. New clause 20 would allow, but not require, High Speed 2 passenger services to be run in the public sector. A similar clause was part of the Crossrail Act 2008, leaving open the option to run passenger services in the public sector. Indeed, we have worded this new clause so that it is as similar as possible to section 26 of the 2008 Act.

May I remind the Minister and the House that the Conservative party did not reject the idea of at least keeping an open mind about who might be the best operator to run Crossrail—or the Elizabeth line—in future years, and it would be disappointing to see the Conservative party move from a position of pragmatism to one of sheer ideology. It would be talking Britain down to suggest that private companies and the state-owned rail companies of the Netherlands, France and Germany are able to run successfully passenger services on our railways, but we ourselves are not. I hope that the Government do not have such a pessimistic view of our capabilities as a nation and will vote in favour of new clause 20.

[Mrs Cheryl Gillan (Chesham and Amersham) (Con)]

It was disheartening to hear the Minister dismiss my amendments in this group before hearing what I had to say, although I am grateful to him for acknowledging that over the past six years I have fought for my constituents and their rights and interests in the face of opposition from many people outside this House. My new clauses in this group are practical and sensible and will, I think, assist my constituents and others up and down the line.

New clause 1 is about local authority finance. Local authorities the length of the HS2 route have received no extra help to support their work on this major infrastructure project. The burden on my two local councils, Buckinghamshire County Council and Chiltern District Council, has been enormous, but the new clause would also apply to other councils.

Buckinghamshire County Council is naturally concerned that without central Government intervention and help its costs will continue to escalate. If the last six years are anything to go by, they certainly will. The county council’s outturn figure for 2015-16 is nearly £520,000 for costs relating to the legal petitioning process, engagement with HS2 Ltd and getting the best deal for Buckinghamshire residents. The council has just submitted the recharge to HS2 Ltd on the current memorandum of understanding and can recoup barely £10,000 for the last year. Why must taxpayers in Chesham and Amersham and elsewhere not only pay for this railway to be built, but pay again through their council tax for their local authorities to carry out inescapable pre and post-construction work for which they get very little help or none at all? Over the past six years, Chiltern District Council has spent nearly £1.18 million on complying with HS2 requirements —a huge amount for a district authority.

Councils have paid out literally millions in the past six years. The costs will only grow during the construction phase and there is no guarantee that local authorities will be fully recompensed. They would appreciate a clear, legally enforceable commitment from the Government that the extra burden will be recognised, particularly in the light of the local government finance settlement. My county, Buckinghamshire, was heavily affected by the settlement. It was only through myself and other Buckinghamshire MPs making very strong representations that we got some increased moneys for our local authorities. If accepted, new clause 1 would ensure security for our local authorities along the whole route where service agreements do not provide additional funding, received by the end of the year. The Minister should appreciate that I am asking for statutory and legally enforceable requirements because there is great distrust of the process so far. I think it is essential to enshrine the provision in statute, so that it is legally enforceable.

New clause 2 is designed to give statutory enforceability to the Department for Transport’s intention to reimburse local authorities for highways repair costs consequential on the construction of HS2.

--- Later in debate ---

[Mr Grieve]

I will be extremely brief on the issue of the adjudicator. I listened very carefully to what the hon. and learned Member for Holborn and St Pancras (Keir Starmer) said and I have great sympathy with all the points he makes. This is why I am bound to say that I find it so odd that the Government will not accept the creative idea of having an office of the HS2 adjudicator. The scale of the project makes it desirable to have an independent arbitration authority to resolve the inevitable disputes that will arise over the way in which the scheme is carried out. If I may say so to the Minister, I would have thought it very much in the Government’s interests to accept this idea; otherwise, the burden will inevitably fall on Members of Parliament whose constituencies are affected, and the House’s time will be taken up with constant arguments about how HS2 is not observing its obligations or carrying out the work in accordance with the intention it originally presented.

This is going to cause massive problems for the Minister and his Department and will probably clog up some of the House’s business time. It is all the more reason to have an independent adjudicator who is approachable exactly like an ombudsman and who can take on some of that burden and do it professionally and in a manner that reassures people and commands respect. I therefore strongly urge the Minister to accept new clause 8. It would be regrettable if the Government did not, because, as I say, an extra burden would fall on their shoulders as a result of the many problems that will inevitably arise during construction of the project.

[Andy McDonald]

I wish to speak to new clause 22 on the construction of an integrated station at Euston.

There have been many discussions and consultations between HS2 and Camden Borough Council about Euston, and the new clause draws on the assurances that HS2 gave to Camden. The thrust behind this long and technical new clause reflects the fact that the redevelopment of Euston presents an enormous opportunity to build something of real worth to accommodate not only the station to the west for HS2 phase 1 and all its works but the redevelopment of the mainline station, and to take into account the requirements of phase 1 and, in due course, phase 2, including in anticipation of Crossrail 2 in the fullness of time.

[Michael Fabricant]

The hon. Gentleman is right to talk about the integration between Crossrail and Euston and what might be possible at Euston, but does he agree that it is completely mad that HS2, which will be coming from the north, does not go to St Pancras or even connect with HS1 to enable people to travel to the continent?

[Andy McDonald]

That point has been raised several times. The intention, as expressed in the documents, is to have a pedestrian connection between them.

An overarching approach to an integrated station would not only take account of all the anticipated works but achieve the objectives of securing the best possible outcomes for the residents of Camden and minimising the enormous disruption they will undoubtedly suffer. Many properties will be demolished and other properties will be in extremely close proximity to the works; public open spaces will be lost; there will be fleets of heavy goods vehicles and commercial vehicles; and noise pollution will undoubtedly disrupt the peaceable enjoyment of many properties, including in places such as Cobourg Street, which is a tranquil community with a quiet courtyard at its heart, notwithstanding its close proximity to busy traffic and the railway station. Businesses in streets like Drummond Street will also be disturbed.

We are asking the good people of Camden to put up with a great deal and to make huge sacrifices for the benefit of the nation, and Labour has tried to do all it can, in new clause 22 and in Committee, to mitigate the impact on the quality of life for residents. We acknowledge the sincerity of the Minister and his colleagues in working to that objective, but we take the view that this is so important that the assurances given ought to be in the Bill and have the full force of law.

We seek to minimise the amount of excavated material and construction materials transported into and around the site by road and to have as much as possible moved by rail. Camden Council has developed a Euston area plan, and we propose that any designs for the enlarged Euston station take full cognisance of that plan and other such framework documents and relevant guidance. The assurances talk of various boards, including the Euston strategic board, the Euston station strategic redevelopment board and the Euston integrated programme board, which bring together a number of prescribed partners. We seek to ensure that the nominated undertaker—the relevant body carrying out the HS2 works—is obliged to participate in those boards, as the assurances given by HS2 so describe.

[Geoffrey Clifton-Brown]

Does the hon. Gentleman agree that if Euston station were holistically designed and developed, it would provide a huge opportunity for regeneration in the Euston area and produce a lot of good quality local affordable housing to replace some of the affordable housing that will be devastated by HS2?

[Andy McDonald]

I agree entirely with the hon. Gentleman’s intervention. That is the thrust of our new clause, which I trust he will support. It stipulates that the redevelopment board will advise the Secretary of State on the delivery of an “integrated and comprehensive design” for the enlarged Euston station, and it is for the integrated programme board to make sure that the designs and construction plans for Euston fit with proposals for other Euston schemes.

Access is a real issue, so while the construction is under way, which it will be for many years, we want to ensure that pedestrians and cyclists have continuous access through the site, east to west and north to south, insofar as it is “reasonably practicable” to do so. A design panel will work to ensure that the relevant partners can agree an appropriate design. Whoever is appointed for these purposes by HS2 will be obliged to work with that panel to ensure full buy-in to the design. Indeed, there will be an obligation on the nominated undertaker to take proper notice of the recommendations made by the design panel, and if for some reason the nominated undertaker does not follow those recommendations, our new clause states that it will be required to explain why that is so. The new clause makes sure that the community is properly engaged throughout the construction works at Euston so that its concerns will be recognised and its voice heard.

The provision is even more important, given today’s publication of the Parliamentary and Health Service Ombudsman’s report on a complaint about HS2. It effectively concludes that there are fundamental problems with the way HS2 Ltd communicates with the residents affected by their plans and the way it handles complaints.

The report dealt with specific complaints, but it is worrying that the Chairman of the Public Administration and Constitutional Affairs Committee has said:

“There is still a culture of defensive communication and misinformation within this public body and that is not acceptable. Unless those responsible for delivering HS2 understand that first and foremost they serve the public, they will continue to be criticised for having complete disregard for the people, some of them vulnerable, who are impacted by this large-scale infrastructure project.”

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

rose—

[Andy McDonald]

If my hon. Friend would not mind, I am conscious of my time drifting away.

The Chairman continued:

“We expect HS2 Ltd to prioritise its response to Ian Bynoe’s forthcoming recommendations on communication and engagement and on complaint handling. This is a matter of primary importance for HS2 Ltd, and must be treated as such.”

I trust that the Minister will take on board the criticisms of the Committee and make sure that any necessary cultural and other changes are made so that there is no such repetition. I urge him further to consider, even at this late stage, accepting our representations in the context of this new clause.

The new clause also provides that when the Secretary of State sets out the Government’s periodic railway investment plans, in what we have come to term “control periods”, he or she should set out the costs of and funding for the anticipated works in the planning period before the works start and during the control period in which the works will fall.

Yes, previous infrastructure projects have had similar assurances woven into them and they have been observed, but this is such a huge infrastructural undertaking, the likes of which has never been done before in such a manner, on such a scale or over such a lengthy period of time. We believe that the people of Camden need to have more than just the assurances that have been given. On this occasion, we believe that we have to take the extra step of working those assurances directly into the Bill.

The Minister will not need me to remind him that throughout the Public Bill Committee Labour tabled a number of amendments and new clauses that pressed the Government to justify the inclusion of wide-ranging blanket powers granted to the Secretary of State for the purposes of the construction and operation of HS2. Each time the Minister responded by resisting our attempt to curtail the scope of the Secretary of State’s powers on the basis that the Government was taking a “belt and braces” approach so as to be absolutely sure. I am now therefore asking for the loan of his belt and braces— not to protect my dignity, but to protect the people of Camden.

I do not intend to impugn the sincerity of HS2 Ltd or of the Minister, and he knows that. In the light of the comments from the Public Administration and Constitutional Affairs Committee and the special set of circumstances that apply, we firmly believe that these provisions need to be enshrined in statute. I shall test the will of the House on new clause 22 by putting it to the vote.

[Mrs Caroline Spelman (Meriden) (Con)]

I have tabled some fresh amendments that are designed to help colleagues whose constituencies are along the line of route. In particular I shall highlight the important issue of the adjudicator, and I shall support my right hon. Friend the Member for Chesham and Amersham (Mrs Gillan) on new clause 7. I want to impress on the Government that when I was Secretary of State for Environment, Food and Rural Affairs and published the “Natural Environment” White Paper, it was made clear that the objective was for a net positive outcome from offsetting. That is more ambitious than no net loss, and it can be achieved by, for example, combining offsets and regenerating degraded land such as the Tame river valley on the east of Birmingham, where the spur to Birmingham station will be built.

Govia Thameslink and Network Rail

Andy McDonald Excerpts

Wednesday 16th March 2016 Westminster Hall

[Andy McDonald (Middlesbrough) (Lab)]

It is indeed an honour to serve under your chairmanship, Mr Hollobone. I, too, congratulate the hon. Member for Horsham (Jeremy Quin) on securing this important debate, and I also congratulate hon. Members from all parties on articulating their case so well. This railway line has been described as the “misery line” and “the line from hell”, and given hon. Members’ accounts of it one can readily understand why.

The question of railway performance and effective working relationships between railway operators and Network Rail is very much the order of the day. Indeed, this very day we will digest the long-awaited Shaw report into the future of Network Rail. I must confess that my journeys into London from 250 miles away sound a lot more efficient and comfortable than the journeys endured by hon. Members from all parties in the House. It has been said that what Network Rail needs are the right people with the right plan. Hopefully they will start to emerge, but then it is about the delivery of what passengers want, as opposed to ripping things up and starting again. We await the recommendations of the Shaw report with great interest.

Today, however, we are dealing with the current very sorry state of affairs on the biggest franchise that has ever been let, which is the combined Thameslink, Southern and Great Northern, or TSGN, franchise. It covers an enormous territory, centring as it does on our ever-growing capital city, and ranging from King’s Lynn in the far north-east—it is all relative, if that is the “far north-east” for this franchise—to Milton Keynes in the north-west, to Southampton and Portsmouth in the south-west, through to Horsham and to Hastings and Maidstone in the south-east. It takes in the connections to Gatwick airport and, ultimately, converges on central London and some of our very busiest mainline stations, including London Bridge, which has been the focus of such significant complaints in recent times.

I will get straight to it and say that this was undoubtedly an ambitious franchise when it was let in 2014. Although I do not wish to diminish by one jot the considerable concerns that Members have, a very significant amount of disruption was always going to be involved with such a major project. One of the major concerns that have arisen—I hope that the Minister will address it—is the extent to which there has been sufficient honesty with the travelling public about the correctly predicted diminution in the standards of service for the duration of the works, and whether that assessment has been made and properly communicated to passengers. We have heard of people being, on the face of it, deliberately misled.

There has to be a degree of accuracy and honesty about what is achievable. Failing to highlight adequately the difficulties that such major undertakings present, and not communicating all of that to the travelling public, serves only to increase dissatisfaction and dash high hopes and expectations. In addition, given the performance issues that have arisen since the franchise was let, questions arise about whether those performance issues ought to have been better identified before the start of the franchise. I therefore ask the Minister to set out what measures are being taken to address those matters and to say what lessons can be learned, especially in the context of the equally ambitious plans for Waterloo station and Euston, which are a consequence of our decision to proceed with High Speed 2. In short, we do not want to see a repeat of the difficulties encountered at London Bridge at other major rail hubs.

I say the franchise was rightly ambitious, because at its heart was a major infrastructure scheme to vastly improve capacity and performance. To that end, London Bridge is undergoing a major reconstruction and transformation, and I believe that work is expected to be completed by 2018. Among many other things, those works will facilitate 12-car Thameslink trains and a new station concourse to improve passenger circulation, which is currently very badly disrupted.

The network is characterised by increased passenger numbers and overcrowding, and significant safety concerns have been outlined, which should alarm us all. However, the outfall in addressing these issues cannot be underestimated. TSGN’s ability to get trains running to timetable is not good. The percentage of franchise trains arriving at their destination on time stands at 81.7%, compared with the industry average of 89.3%. While that is an improvement from 76% and 79% in the previous two years, it still means that nearly one in every five trains do not arrive on time. Judging from the accounts of hon. Members today, it sounds as if those late trains can be clustered together in much higher ratios.

The “right time performance measure” measures arrival time against trains arriving early or within 59 seconds of schedule. Network Rail says that it is not an entirely reliable measure, but in any event it currently tells the sorry story of a compliance rate of only 52.6%, against the industry average of 64.8%. That means that nearly half of TSGN trains do not arrive within 59 seconds of schedule. Given the experiences that have been outlined today, that proportion of late trains may be significantly more than 59 seconds out of its schedule. Similarly, the record on cancellations and significant lateness is 5.3%, against an industry average of 3%. That is a poor reflection, and that feeds through into customer satisfaction.

It is perhaps no surprise that the common factor in the low passenger satisfaction rates in the three bottom-ranked operators—Thameslink, Southern and Southeastern —is the shared line into London Bridge. It seems that passenger flows in and around London Bridge station may not have been correctly predicted. Does the Minister agree with that observation? Can any lessons be learned on the modelling of such matters? Will she comment on the specific measures that might be taken to improve the flow of passengers, given the establishment of the rail reparation fund for TSGN passengers? That was set up in December 2015 and is worth £4.1 million.

In August 2015 serious weaknesses were found by the regulator in the data used to settle new timetables. Network Rail was found to have overestimated the impact of those timetable changes on performance. It seems that there has been insufficient communication between Network Rail and the operators to accurately identify just what impact the new timetables would have. Will the Minister consider whether and how that process might have been better managed and look into additional mitigating measures that could be taken to ameliorate the adverse impacts? There have been issues surrounding the numbers of train drivers, and we have heard that it is not simply that people are failing to turn up—insufficient numbers have been recruited. There is an issue about platform availability during the major works. Will she comment on that?

Efforts are being made to address to some degree the concerns expressed this afternoon, but I look forward to securing some assurances from the Minister that steps will be taken as a matter of urgency to improve the passenger experience in the franchise ahead of what will, I hope, be an entirely happier story come the completion of the works and the introduction of new services in 2018.

A point was made about the sanctions that might be applied to the operator if it fails to abide by the terms of the franchise. Will the Minister give some assurance that, notwithstanding the change to the structure of Directly Operated Railways, the Department for Transport retains the capability to step in through that office in the event of chronic failure?

[Kelvin Hopkins]

Of course, when the east coast main line was returned to the public sector for five years, it made a surplus of something like £1 billion for the Treasury, and during that time it ran a very good service.

[Andy McDonald]

My hon. Friend makes a good point. While that was an excellent turnaround from a pretty dire situation, if this particular franchise is, as Members have outlined, so poor that it demands intervention, my concern is that we should still retain the capacity to do that. Given the recent changes to the DOR—it is no longer in the same form—I am concerned that it would not assist at all. Will the Minister address that point?

Will the Minister also address the pertinent issue of electronic ticketing? Members have correctly identified and highlighted the benefits that could be secured from an intelligent roll-out of electronic ticketing. Those benefits relate to access not only to fair fares, but to refunds. I understand that although several tens of millions of pounds was spent trying to progress that agenda, it has come to a shuddering halt and has simply been handed over to the operators.

[The Parliamentary Under-Secretary of State for Transport (Claire Perry)]

indicated dissent.

[Andy McDonald]

The Minister disagrees. I am enquiring, so perhaps she can enlighten and correct me. A number of Members have clearly made that reasonable demand on electronic ticketing, and it seems eminently sensible. We want to know what happened to that investment and how it will be progressed.

Finally, I was heartened to hear many Members from across the territory express, on behalf of their constituents, the need for proper staffing levels to be maintained in our railway stations. Many people spoke about difficulties in accessing ticket machines and computer systems. Often that was beyond their capabilities, whether because of information technology illiteracy, learning difficulties or other issues. That strong message came from Members’ contributions today. Will the Minister comment on how we can secure those reassurances that all members of the travelling public need? They need to see that human interface, and sadly it is clearly lacking in the operation of the franchise.

[Mr Philip Hollobone (in the Chair)]

If the Minister is kind enough to conclude her remarks no later than 3.57, that will allow Mr Quin three minutes to sum up before I put the motion to the House.

Oral Answers to Questions

Andy McDonald Excerpts

Thursday 10th March 2016 Commons Chamber

[Claire Perry]

Of course. The best way to deliver station improvements is to get together the local group, the local enterprise partnership, local businesses and local communities. The record Government investment in the railways is best spent when it is pulled through to support local needs.

[Andy McDonald (Middlesbrough) (Lab)]

What assurance can the Minister give that full accessibility for passengers with disabilities is made a priority in the refurbishment of railway stations? Will she ensure that the needs of passengers are central to the refurbishment or renovation of stations without any access provisions or stations that need upgrading? How can that be achieved, given the 40% cut to Access for All funding?

[Claire Perry]

I sometimes wonder whether we are reading the same papers. The Government are spending more on the railways—£38 billion—than has been spent at any time since the Victorian era. The hon. Gentleman is right to point out that disability access is hugely important. It is also important on the trains. All the train fleet will be disability compliant in the next few years. It is important, but we have a limited amount of money to spend on upgrading the railways, which were woefully neglected under his Government.

High Speed Rail (London - West Midlands) Bill (Fifth sitting)

Andy McDonald Excerpts

Tuesday 8th March 2016 Public Bill Committees

[Andy McDonald (Middlesbrough) (Lab)]

I beg to move, That the clause be read a Second time.

It is a pleasure to appear in front of you this morning, Mr Chope. The Committee has been successful and efficient. We had many interesting discussions last week. We concluded our discussion of the amendments and we now come to the new clauses.

New clause 20 concerns the HS2 design panel. On 10 December 2015, HS2 took another step from the drawing board to reality with the appointment of a new independent design panel to support HS2 in realising its aim of applying the best design principles to all its work. The panel, chaired by Sadie Morgan, will be the project’s independent adviser, helping it to deliver on its key design principles around people, place and time. A host of experts are engaged, including experts in urban design, landscape and equality, diversity and inclusion. I have seen that already in the session that I attended in Darlington, where there was clear engagement. That is woven into the fabric of HS2 and is to be welcomed.

Experts in digital and brand and product will work alongside internationally renowned architects, together with sustainability and engineering experts, to help guide HS2’s development, so it all bodes well. Sadie Morgan, the chair, said that the aim of the panel was to

“mentor and inspire HS2 to design a transformational railway system which will exceed all of our expectations.”

She also said:

“The British creative and engineering industry is already delivering outstanding examples of design excellence around the world. HS2 is a huge opportunity to bring that brilliance home.”

Indeed, the Minister echoed those words and said that the panel

“is crucial to ensure HS2 achieves its full potential for everyone. This includes making sure that passengers get the experience they want from HS2 and that it is sympathetic to the landscape through which it is built.”

He concluded by saying,

“We want HS2 to be a world class railway which maximises the benefits for the country. Having such a highly-skilled group of experts on board will help make travelling on it easy and pleasurable and ensure we have impressive stations to act as a catalyst for significant regeneration and economic growth.”

The chief executive, Simon Kirby, said that he was

“delighted the...Panel has now been formed. It’s a mark of HS2’s significance that it’s attracted such a wealth of talent to help us deliver this transformational piece of infrastructure for the nation. Forty five experts will form the independent design panel team, contributing to the project’s development in areas where their specialist experience and opinion is required.”

He went on to say:

“Cementing the principles of the Design Vision so early in HS2’s development will help it to play a key role in rebalancing the economy through delivering the benefits that flow from investing in Britain’s new high speed rail network.”

It is that principle of cementing the design vision that our new clause seeks to address. Sadly, I can see no reference to the HS2 design panel in the Bill, so we have tabled the new clause to secure assurances from the Minister that the nominated undertaker will make best use of the considerable expertise of those on the independent design panel and have regard to the design panel’s recommendations during the design work for phase 1. With that, I invite the Minister to take the opportunity to clarify the weight that the recommendations of the HS2 design panel will have with the nominated undertaker in the construction of High Speed 2.

[The Minister of State, Department for Transport (Mr Robert Goodwill)]

It is a pleasure to serve under your chairmanship, Mr Chope; a very good morning to you.

The intention of the new clause, as the hon. Member for Middlesbrough has said, is to require the nominated undertaker to have regard to the design panel’s recommendations during the design work for phase 1 of HS2. The design panel was established in November 2015. I hope I can give the hon. Gentleman the assurances he seeks, and that he will not feel it necessary to press the new clause to a vote.

We recognise that great design is essential for High Speed 2. We want it to make the country proud and show the world what great British design can do. For that reason, HS2 Ltd has created a design vision for the railway, and we have set up an independent design panel to provide advice on and a critique of the development of HS2, to help it achieve its design vision.

The remit of the panel is based on widely accepted industry best practice, as set out by the Design Council and other design bodies. HS2 Ltd, in designing the railway, is required by the Department’s development agreement to incorporate the recommendations of the design panel, where this is practical. Binding assurances to this effect have been given to local authorities, including Birmingham City Council, the Greater London Authority, and others. The independent design panel is only just being established, but HS2 Ltd would be expected to follow any recommendations made by the successor of the design panel, and the development agreement would be amended accordingly.

I have to say we made some mistakes at the start of the scheme, when a number of cut-and-paste viaducts were used to indicate the line of route. Some communities were alarmed to see viaducts of that type, which had no design element incorporated in them; they looked like concrete boxes on legs. That is not the intention. We intend to have some iconic designs, and I think the design of the railway will be awesome in places; in others it will be more sympathetic to the location. The design panel is integral to delivering that. Therefore, I believe that the Opposition’s concerns have already been met, and that the new clause is not necessary.

[Andy McDonald]

I am extremely grateful to the Minister, who set out with great clarity the fact that there is a requirement to incorporate the recommendations, with a raft of binding assurances. I am content with that, and I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 21

Passenger services: public sector operation

(1) Section 23 of the Railways Act 1993 (franchising of passenger services) does not apply to services operated on the whole or part of the high speed rail line so provided for in this Act.

(2) Passengers services on the whole or part of the high speed rail line so provided for in this Act shall be provided by a publicly owned railway company.

(3) In this section, “publicly owned railway company” has the meaning given to it in section 151(1) of the Railways Act 1993. —(Andy McDonald.)

This new clause would require passenger services operating on the whole or part of the high speed rail line to be provided by a publicly owned railway company.

Brought up, and read the First time.

[Andy McDonald]

I beg to move, That the clause be read a Second time.

In the new clause we address the thorny issue of public sector operation. There has been a great deal of consensus across the Committee thus far, with some notable exceptions; this, we respectfully acknowledge, is perhaps the most contentious issue between us.

If we consider the history of rail privatisation and its impact on the commuting public, it is not difficult to understand the overwhelming public support for bringing railway services back into public ownership. Quite simply, the privatisation of British Rail was a rushed, botched job, which had more to do with ideology than with any clear plan for the nations’ railways, and it left us with a fragmented, inefficient and unsafe network at that time.

[Sir Simon Burns (Chelmsford) (Con)]

If that is the case, why, during 13 years of Labour government, did the hon. Gentleman’s party not do anything to change it?

[Andy McDonald]

To suggest that during 13 years of Labour government nothing was done is to misunderstand the position. A great deal of progress was made with renewals in the railway system, and that must be seen within the context of trying to pick up the pieces after the disaster that was Railtrack. I have already alluded to its appalling record. That left us with an unsafe railway. Much of the 13 years of Labour government was devoted to making it into the safest railway system in Europe. Many people in this room will remember having to reduce speeds down to almost walking pace, because of our concerns about the safety of the points systems and rails. We look back to Potters Bar and Ladbroke Grove, etc., and think of the disasters and loss of life.

To say that our experience of the privatisation of rail infrastructure is not a good one is a gross understatement. It is a huge fear on these Benches that the current proposals to break up Network Rail into eight route businesses may embrace the sorts of dangers that we sadly experienced in those years.

[Sir Simon Burns]

The hon. Gentleman talks about infrastructure, but he has avoided answering the specific question I asked him. If the running of the railways by private companies was so bad, why did not the previous Labour Governments of Blair and Brown renationalise them?

[Andy McDonald]

I will come on to our responses to some of the poor performances and, indeed, failures of the franchised private system. If the right hon. Gentleman will bear with me, I will come to that in greater detail later in my brief contribution. He will know as well as anybody that the McNulty report stated that the fragmentation of our rail network left us with an efficiency gap of between 30% and 40%, compared with other European networks. This means that money which should be used to address the cost of travel and to fund much-needed investment is needlessly wasted. We have been left with a ticketing system which is the most expensive and confusing ticketing structure in Europe. Commuters’ fairs are up by a quarter since 2010, having risen five times faster than wage growth.

Our rail network needs significant investment. Private and foreign state-owned companies are subsidised by the UK taxpayer, while profiteering at the expense of commuters. Far from learning the lessons of the past, the Government seem destined to repeat them.

In illustrating the benefits of publicly-owned operators, one could hardly ask for a better example than the recent case of the East Coast. The previous Labour Government took the important step of bringing the East Coast back into public operation, after the private operator reneged on its obligations in 2009. I have heard it said that failure is somehow a judge of success, in that if franchises fall over and fail, it demonstrates the veracity and robust nature of the franchising system. I do not think that really strikes a chord with the travelling public, who see an unreliable service that does not meet their satisfaction.

East Coast proved itself under public ownership to be the most efficient of operators. It returned almost £1 billion to the taxpayer in premium payments as well as investing every penny of profit—some £50 million—back into the service. In addition, directly operated railways kept fares down, had record passenger satisfaction and engaged the workforce with unparalleled success.

Today is an opportunity for the Conservative party to deliver what the public are asking for by supporting new clause 21, which would require passenger services operating on the whole or part of the high-speed line to be provided by a publicly-owned railway. I hope that when High Speed 2 is open for general use it will be celebrated as a national achievement. I do not agree with the Government that a nation capable of completing such a fantastic rail infrastructure project is not competent enough to operate passenger services, but that the Dutch, German and French are more than capable of doing that for us. Such an attitude that we are not competent enough to do what many of our European counterparts take for granted is effectively talking down our abilities as a nation.

I am sure that we will return to that debate numerous times in this Parliament, but I hope that I was persuasive enough to make the Minister see the veracity of our argument and that he and his hon. Friends will vote with us and with the wishes of the public in support of the new clause.

[Sir Simon Burns]

I do not want to enter a sour note in what have been harmonious proceedings so far, but I fundamentally disagree with the hon. Gentleman’s new clause. I am in good company, because the last two Labour Prime Minister’s shared my view: neither Tony Blair nor Gordon Brown ever wanted to re-privatise the railways while in power and they did nothing to re-privatise the running of them. He failed to answer my interventions on that.

I always find it slightly odd that those who—sadly, like me—are old enough to remember British Rail see it as the halcyon days when everything was wonderful: the trains ran on time; they were terribly cheap, notwithstanding the taxpayer subsidy of fares; and investment in improving the network overflowed. In fact, every time a Government—whether Labour or Conservative—was hit with an economic crisis, one of the first budgets mangled was that for nationalised industries and investment in the railways. That is why both the previous Labour Government and this Conservative Government have had to invest so much money in improving the rail network’s infrastructure: there was so little investment before privatisation.

The hon. Gentleman seems to think that it was a wonderful experience to ride the trains when they were publicly owned, but that was not the case. They were not more efficient and there was out-of-date rolling stock and collapsing infrastructure and, if we go back to 1963, a significant proportion of the network was closed down as a result of the Beeching report. I therefore really do not think that the answer is to turn the clock back to the bad old days as if they were some halcyon period that we should aspire to replicate today.

--- Later in debate ---

[Andy McDonald]

The Minister’s judgment is, as ever, accurate. We have had a thorough debate and the issue shows clear dividing lines between both sides of the Committee. I am grateful to my hon. Friend the Member for Blaydon for reminding us of some of the horrors that were experienced under the management of our infrastructure under the guise of Railtrack.

May I pick up on a couple of points? On British Rail, I hear what the Minister said, but I respectfully suggest that we are talking about an era when there was little faith or investment going into our railway system. We do a huge disservice to the British Rail engineers who kept that service going, effectively on a shoestring. We do them an injustice by not recognising the work that they did.

Virgin and the new services have been mentioned as an illustration of innovation and new services that can be brought into play. I note what the Minister says, but on that detail, because of the way that matters are currently structured and the potential for development of open access services, there is significant pressure and a countervailing argument. This suggests that Virgin/Stagecoach—my hon. Friend the Member for Blaydon is quite right that it is principally a Stagecoach company—will not fulfil the promises that it made in the franchise specification to introduce new services to places such as Scarborough and Middlesbrough. While it is not strictly within the ambit of our discussion, perhaps Mr Chope might take the opportunity to speak with the regulator to ensure that nothing will happen that will undermine or betray those promises.

The Minister talked about the innovation of the IEPs being introduced under the current structure, including those that can be produced by Hitachi in Newton Aycliffe. I think we are all waiting with bated breath, because Hitachi is there for one very good reason: it has access to the single market. However, that is perhaps an argument for another day.

--- Later in debate ---

[Mr Goodwill]

I suggest that rather than being an outlier, we are leading the way.

[Andy McDonald]

That is an ingenious way of interpreting stark distinctions between the United Kingdom and, for example, Germany. Deutsche Bahn provides the majority of infrastructure services in Germany, and it is coming into the UK for the rich pickings and to take our taxpayers’ investment back to Germany’s railway system.

I politely caution the Minister against describing our amendment as representative of an outdated “1970s socialist dogma”. If that was right, there would be some cause for concern, because this idea is extremely popular with the general public. Surveys done in recent times have suggested there is concern about the fact that taxpayers’ money is being used to fund state-owned companies such as Deutsche Bahn, Nederlandse Spoorwegen and Keolis. If the Minister wishes to ignore that, that is a matter for him. We have had a good debate, but this is such an important new clause for HS2 that we wish to press it to a vote.

Question put, That the clause be read a Second time.

--- Later in debate ---

Brought up, and read the First time.

[Andy McDonald]

I beg to move, That the clause be read a Second time.

From nationalisation and re-privatisation to perhaps something a little less contentious. The new clause concerns the role of the construction commissioner. I will not read into the record its nine subsections, but it would allow the commissioner to consider complaints without being limited to the amount of claims for compensation. It would also require the commissioner to be appointed by a process of open competition.

In January, HS2 Ltd announced that it was looking to recruit a construction commissioner to investigate any issues that arise during construction of the much-needed new infrastructure project that cannot be resolved through its corporate complaints procedure. In December 2015, it published an information paper that outlined proposals for the commissioner, which stated:

“The Secretary of State will ensure that a Construction Commissioner is appointed by the time construction begins. If people have a complaint during construction that cannot be resolved through the nominated undertaker’s complaints process, they will have the option of referring their complaint to the Construction Commissioner.”

That is a welcome move. I note that during the construction of Crossrail—the Elizabeth line—a construction complaints commissioner performed an equivalent function. There is, however, no reference to the role of the HS2 construction commissioner in the Bill, so I want to press the Minister on what the commissioner’s role will include and exclude with reference to what the information paper states is expected.

The commissioner’s role is not to include the consideration of claims over £10,000. On 26 February 2016, in answer to written question 28079, the Minister said:

“This figure is provisional, based on other infrastructure projects, and will be subject to review by the steering group.”

I invite him to explain whether the limit should be set at £10,000. Does he think that might constrain the commissioner’s effectiveness in investigating issues that arise during construction?

The information paper also stated that the commissioner’s role will not be to consider

“matters considered by Parliament in approving the project”.

I fear that that may be unnecessarily restrictive and could be exploited to prevent the commissioner from carrying out his or her role effectively. The Bill has a long and complicated legislative history, so I am concerned that a liberal interpretation of that would allow the commissioner to consider hardly any complaints, as almost every issue will have been considered at one time or another by Parliament in approving the project.

It is important that the commissioner is not unnecessarily restricted in his or her role, so I invite the Minister to clarify the commissioner’s role in relation to matters considered by Parliament in approving the project. If the commissioner is not to consider “matters considered by Parliament” or claims “over £10,000”, there would not appear to be a lot for them to get their teeth into. I want to probe those issues and try to secure clarification and reassurance. I look forward to what the Minister has to say.

[Mr Goodwill]

I will say at the outset that I share the hon. Gentleman’s wish for an effective construction commissioner, and I reassure him that after an open advertisement for candidates HS2 is in the process of appointing one. His or her role will be similar to the one set out in the new clause, but with some exceptions.

The appointment will address the points covered in subsections (1) and (2) of the new clause. The matters covered in subsection (3) will be limited to small claims, as it is more appropriate for larger claims to be dealt with through existing legal processes, such as the lands chamber of the upper tribunal.

Matters set out in subsection (4) will be dealt with in the appointment, except where a settlement deed has been offered, as this provides a direct contractual route for claims. The appointment will align with subsection (5). Under subsection (6), the appointment will be made with the involvement of an independent body—the chief executive of the Civil Engineering Contractors Association; and the contract of appointment will stress the complete independence of the commissioner. With regard to subsection (7), the appointment process is under way, and HS2 Ltd expects to interview candidates this week, I believe.

Under subsection (8), the construction commissioner will provide an annual report and other reports as required on the activities of the construction commissioner’s office and its statement of accounts to the independent body, which will be made up of a variety of project stakeholders. It may be that thereafter the independent body will make the documents publicly available. Finally, under subsection (9), the appointment will continue to the end of construction, and it is anticipated that a full final report will be prepared.

I have not received representations about either increasing or reducing the £10,000 limit, but I would be keen to consider anything that provided a chance to look at the matter again. I suspect that the commissioner might be the best person to review that and make recommendations. I believe that the points that the hon. Gentleman made have been addressed and are superfluous. I hope that he will withdraw the new clause.

[Andy McDonald]

I am extremely grateful to the Minister for that thorough analysis of the new clause. He referred to every subsection and it would be churlish of me not to acknowledge that those points have been addressed in full measure. I am reassured to know that there is a residual ability to progress larger claims by alternative means. I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 23

Designing Euston as a single integrated Station

(1) The new high speed platforms to the west of the existing Euston Station must be designed as part of a plan for a single fully integrated Euston station which provides platforms for HS2, mainline and Crossrail 2 services.

(2) Full integration means, but is not limited to—

(a) east-west and north-south permeability, with at grade accessible routes across and around the station for pedestrians and cyclists accessing the local areas,

(b) integration into the existing local transport network, and

(c) the potential for over-site development across the whole Euston station site and tracks.

(3) In developing the design for Euston Station, the Nominated Undertaker must consult with—

(a) the local community and local businesses,

(b) the London Borough of Camden,

(c) passenger groups,

(d) the rail industry,

(e) Transport for London and the Greater London Assembly, and

(f) any other party which the Nominated Undertaker deems appropriate.—(Andy McDonald.)

This new clause requires the design for Euston Station to be approached in a holistic fashion, ensuring that plans for the HS2 platforms do not limit future integration with and redevelopment of the existing mainline station at Euston, nor with plans for a Crossrail 2 station in the area, or the potential for over-site development. It would require the Nominated Undertaker to consult widely on the design of Euston Station.

Brought up, and read the First time.

[Andy McDonald]

I beg to move, That the clause be read a Second time.

[The Chair]

With this it will be convenient to discuss the following:

New clause 24—Euston Station design: having regard to plan, guidance and undertakings etc.—

(1) The Nominated Undertaker must design HS2 Euston Station having regard to the Euston Area Plan and any other relevant Opportunity Area Frameworks and Guidance, and any other commitments or undertakings given by the Secretary of State to the London Borough of Camden, the Greater London Authority or Transport for London.

This amendment would ensure that designs for Euston Station are in keeping with assurances received by interested parties from HS2 Ltd, secured via the petitioning process. The design must be in keeping with relevant plans and guidance already published.

New clause 25—Integrated development of Euston Station—

(1) The Nominated Undertaker must design HS2 Euston Station in such a way that its design—

(a) facilitates the acceleration of the redevelopment of Euston Mainline Station,

(b) does not preclude future integration with a rebuilt Euston Mainline Station,

(c) does not preclude future integration with the Crossrail 2 proposals at Euston, and

(d) maximises the opportunity for mixed use over-site development, especially the maximisation of new affordable housing and the creation of open space.

This amendment would ensure that any development at Euston Station does not preclude the future redevelopment of and integration with the existing mainline station, nor integration with a future Crossrail 2 station at Euston, or maximising the potential for over-site development at Euston.

[Andy McDonald]

This group of new clauses deals specifically with Euston. Many of us have had the opportunity not only to visit Euston but to look at innumerable plans and photographs showing just how significant the development will be for the people of Camden. The thrust of the new clauses is to try to deal with some of the many and varied concerns that people have about the opportunities presented by the integration of the station building with HS2 and other elements.

New clause 23 would require an holistic design approach to ensure that HS2 platforms would not limit future integration with, and redevelopment of, the existing main line, plans for a Crossrail 2 station, or potential over site development. The nominated undertaker would be obliged to consult widely on design. New clause 24 would simply ensure that the station designs were in keeping with assurances received from HS2 Ltd by interested parties, secured via the petitioning process. It would accordingly require the design to be in keeping with already published plans and guidance.

--- Later in debate ---

[Mr Goodwill]

Euston is a tremendous opportunity with regard to HS2 and the other developments that will be taking place in the area. It is an opportunity that we should grab with both hands, to maximise its potential. I hope that Camden is signed up to that ambition too.

Local authorities up and down the line are in the process of moving from a “Stop HS2” stance to one of asking, “How can we maximise the benefit for our community?” I think that communities would have expected their local authorities and their councillors to take that initial line, but to then start to engage more fully at the necessary stage. Indeed, I have met with the leader of Camden Council, and she is someone with whom I can do business. We have seen the transformational effect that station development has had at King’s Cross, and I would like to see that echoed in what we do at Euston.

With regard to the specific wording that the hon. Gentleman referred to, I can reassure him that this is not designed to be a gagging order. This wording is an appropriate condition that is included in agreements where petition issues have been met, and aims to make sure that the same issues are not raised in the Lords at hybrid Committee stage. It should be remembered that as a planning authority Camden can object during the detailed design stage of the process.

Regarding new clause 23, I can assure the hon. Gentleman that we have always been cognisant of the need to integrate the new station with the existing transport networks in the area, and to augment them where necessary. On that basis, this clause is unnecessary, as our current proposals for the design of the HS2 Euston station are already designed to dovetail with various potential design concepts for the redevelopment of the conventional side of Euston station by Network Rail, at what we call the B2 stage of the station redevelopment. In particular, our current design, as already set out in the Bill, will enable future east-west permeability across the whole station, and enhancements to the foundations to support future oversite development on the new station.

The hon. Gentleman said that this was a funding challenge, but of course that funding will unlock tremendous development opportunities over the site. The design makes the necessary provision for future passenger connectivity to Crossrail 2, the latter being a strategy that has been developed in close collaboration with London Underground. Incidentally, of course the development at Euston will also result in a massive improvement to the facilities available for London Underground passengers, ensuring better passenger flows and a subway connection from Euston Square station, which currently involves crossing streets.

Furthermore, the design for Euston as set out in the Bill is already set to provide not only the new station for HS2 but sufficient additional capacity for interchange with London Underground and other transport networks, in order to serve HS2 growth as well as growth in underlying demand in the longer term. Indeed, when the first phase of HS2 is open, we anticipate around 30% of passengers alighting at Old Oak Common, as that will be a better station by which to access some of the London destinations and Heathrow airport. That will take some of the pressure off Euston. There may well be a good opportunity for some more development to be carried out by Network Rail while it makes use of the lack of pressure on that station, which is already one of the busiest in the country. It is the Government’s intention that Network Rail would, in this context, develop its own proposals to ensure a joined-up vision across the whole station and support the objectives for the surrounding area.

As for subsection (3) of the proposed new clause, we have provided assurances to the London borough of Camden and Transport for London about working with both these parties, along with Network Rail and the GLA, under the auspices of bodies including the Euston station strategic redevelopment board and the Euston integrated programme board. This will comprehensively address the hon. Gentleman’s objective here.

New clause 24 is unnecessary as the Bill already establishes a special planning regime for the approval of certain details, including the design and external appearance of stations in accordance with schedule 17. The London borough of Camden will be the determining authority for these approvals, and the Euston area plan will be material to its determination in so far as it is material to the matter for approval and the grounds specified in the Bill. Any oversite development above and around the station and tracks will be determined outside of Bill processes, under normal planning processes for which the London borough of Camden will be the determining authority.

The Euston area plan provides the local planning policy framework for deciding submissions for approval of relevant details in accordance with the planning regime established under schedule 17, for approval of over-site development and any other development outside the Bill powers. I should also note that we have of course been working closely with Transport for London to ensure that the approach to transport planning for London is joined up, and specifically that planning for passenger journeys from origin to destination is co-ordinated.

Many of the points I mentioned in my response to new clause 23 from the hon. Gentleman opposite are similarly relevant to new clause 25. Our current plans for the design of the HS2 Euston station already facilitate a variety of potential designs for the conventional station, allowing for the potential for connectivity with Crossrail 2, and providing for over-site development. Network Rail is committed to preparing a planning brief appropriate to the conventional side of Euston station, and is working closely with us and Transport for London to prepare proposals for the conventional station which have been co-ordinated with the new high-speed station. We support the wider vision for the Euston area. Those proposals will be promoted, funded and implemented through Network Rail’s normal control period infrastructure investment programme.

I believe that all the hon. Gentleman’s points have been addressed, so I hope that he will not press proposed new clauses 23 to 25.

[Andy McDonald]

I am grateful to the Minister for his response. I will certainly not press new clause 24, given that he kindly set out that the authority will be Camden, which is greatly reassuring. Similarly, I will not press new clause 25, because the Minister has satisfied me in that respect.

My only concern is about new clause 23. Although he has gone a considerable way towards satisfying me on the issues raised in that clause, he did say that the intention was —I do not know what the words were—to encourage Network Rail to come forward with a plan for the mainline station. I do not wish to be churlish in any way, but that qualification seemed to dilute somewhat the import and intent of new clause 23. It is not something that has been secured, so for that reason, I wish to press new clause 23 to a Division. I am content, however, not to press new clauses 24 and 25.

Question put, That the clause be read a Second time.

--- Later in debate ---

Brought up, and read the First time.

[Andy McDonald]

I beg to move, That the clause be read a Second time.

This new clause’s clear objective is to put a provision in the Bill to address the very considerable concerns of Euston’s residents, so that everything that can be done is done to minimise the inevitable and significant disruption caused by heavy goods vehicles taking excavated and waste materials away from the site and bringing in construction materials. When I talk about excavation, I fully recognise that all the materials that will be extracted and excavated in respect of the tunnelling will be taken away by rail. However, it is the excavations outwith the tunnelling that concern me and which this new clause deals with.

We are talking about the development of a railway at and around the site of an existing mainline railway. That being so, transporting excavating materials and bringing construction materials by rail makes eminent sense and will go some considerable way towards mitigating the impact of construction on the community.

--- Later in debate ---

[Mr Goodwill]

I fully recognise and agree with the sentiment behind the new clause. It is for that precise reason that my officials have already agreed a binding assurance with the London Borough of Camden that we will maximise, as far as reasonably practical and within existing Bill powers, the volume of excavated and construction material from the construction of Euston station and approaches to be brought in and removed by rail, while balancing the wider environmental impact to the local community and passenger services. For that reason, the new clause is unnecessary.

In order to determine the level of material that could be removed by rail, further work is required with rail partners, the London Borough of Camden and Transport for London. To that end, we have further agreed to develop a plan together with the London Borough of Camden, the Greater London Authority and Transport for London for the bringing in and removal of excavated and construction materials to and from Euston station by rail. The plan will include the consideration of options that will require separate planning permissions that may be granted by the London Borough of Camden or the Greater London Authority.

I can be more helpful than the hon. Gentleman possibly anticipated on excavated materials that will need to be transported. I have some figures which relate to Euston and Camden and the central London and metropolitan area. We anticipate that the excavated material will be transported by three means: by rail, public highway haul or site haul, which means utilising the line of route to transport goods, whether by conveyor belt, by dumper trucks that do not go on the public highways, or by the rail which will be placed on the line for its operation.

In terms of the central London and metropolitan area, site haul will be 56%, or 16.9 million tonnes; rail haul will be 31%, or 9.46 million tonnes; and public highway haul will be 13% or 4 million tonnes. As the hon. Gentleman can see, that has dramatically reduced the amount of material that will impact on people as they drive their cars or ride their cycles or are pedestrians in the London area. The figures for the total of the phase 1 route will be 70% by site haul, 24% by public highway haul and only 6% by rail haul given the network. I confirm that, unfortunately, there is no opportunity to use river or canal. I think the figures will soon be published in response to a parliamentary question, posed by Lord Berkeley, and become a matter of public information. I hope the hon. Gentleman is reassured that, where possible, we are doing what we can.

It is still early days for construction materials coming on to site. We have not yet awarded contracts and are not sure from where some of the materials will be sourced. However, we will be doing everything we can to maximise the amount of materials that can come in by rail, as this will limit the impact on people living in Camden. That will be a priority on the whole line to Birmingham.

All the hon. Gentleman’s points have been addressed, and I hope the proposed new clause will be withdrawn.

[Andy McDonald]

I am grateful to the Minister, but he has not gone as far as I expected. First, he is basically saying, “the assurances and our intent entirely fit with the import of the new clause.” I cannot for the life of me see why the new clause simply cannot be embraced. Among other things, the new clause would send a positive message to the people of Camden that the Government take the issue extremely seriously. The new clause would not only set out in great detail the Government’s intent, as contained in the assurance document, but would do so in the Bill.

[Mr Goodwill]

We have been here before on the assurances that have been given. I make it clear that, as with all assurances, the Secretary of State is accountable to Parliament. If someone believes that an assurance has been breached, the recourse is through Parliament.

[Andy McDonald]

That does not negate the simple and principled point that the issue should appear slap bang on the face of the Bill. The Minister knows that disruption and pollution, which we will discuss, are significant issues for the people of Camden. Although he has given us a helpful breakdown of the figures and the methodologies for removing excavated materials from the site, he says that it is early days for the construction element. There can be no specifications for the likely figures for construction materials. That being so, it leaves a glaring gap in our knowledge of what is likely to happen. I can readily accept that the intention is to reduce road use, but this new clause would put that beyond doubt. With respect to him, the new clause is entirely consistent with the Government’s position. I am trying to be helpful by perhaps gaining some credit for the Government with the people of Camden, not only that their legitimate concerns are being rightly recognised, but that the Government are prepared to go so far as to place that assurance and guarantee slap bang where it belongs—on the face of the Bill.

Unless the Minister has been converted and will simply accept the new clause, I ask that it be put to a vote.

Question put, That the clause be read a Second time.

--- Later in debate ---

[Andy McDonald]

I beg to move, That the clause be read a Second time.

There is only so much disappointment that an individual can take. I thought that I had been pretty persuasive. Nevertheless, can I have a go with another one? I trust that this will be relatively straightforward—I live in hope.

The new clause calls on the nominated undertaker to conduct meaningful engagement with communities living and working along the London-west midlands route. It is self-explanatory. It simply requires the nominated undertaker to have regard to commitments and undertakings given to the London Borough of Camden and any other relevant party to engage and consult with the communities along the route.

There are two points to make. First, there has been comprehensive and in-depth engagement with communities thus far, through the good offices of the excellent Select Committee and that exhaustive process of listening to the petitions and requests for amendments, ameliorations and compensations. The new clause would require the nominated undertaker to engage consistently and continuously with such communities once the work was under way. The hope is that that would provide continuous reassurance to those communities that, even though HS2 has passed through all its necessary legislative processes, their concerns still rank with the promoter, the nominated undertaker and, indeed, the Secretary of State, and that there will be mechanisms for those communities to engage continuously with the promoter and others, so that any concerns that arise in the course of the construction or any opportunities that arise that require further attention are indeed given that attention and those concerns or opportunities will not be ignored or lost.

Secondly, with regard to the commitments and undertakings given to the London Borough of Camden and others, the new clause would go a long way towards embedding those undertakings and commitments in the programme for the entire duration of construction and operation, and would mean that there was a statutory confirmation that those commitments and undertakings have the force of law and must be properly regarded and observed.

I trust that this new clause is not considered contentious and can be agreed. I invite the Minister to confirm that he is agreeable to such a reasonable new clause, which is entirely consistent with his own comments to date and with the assurances given by the promoter.

[Mr Goodwill]

The hon. Gentleman says that there is only so much disappointment that he can take. I hope, in that regard, that he has started to prepare himself for the 2020 general election.

The new clause would introduce a requirement for something that the promoter is already obliged to do. As part of the development of the scheme and the Select Committee process, we have provided Camden with assurances on engagement with communities. Those assurances will be binding on the nominated undertaker. As with all assurances, the Secretary is State is accountable to Parliament should they not be delivered on. We recognise that communication and engagement are critical elements of delivering the construction works, and that high-quality engagement is essential to the nominated undertaker’s relationship with communities and stakeholders.

As the new clause recognises, we have given many commitments and undertakings to local authorities to consult the communities who live and work along the line of the HS2 phase 1 route. For example, an assurance has been agreed with the London Borough of Camden that requires the nominated undertaker to engage with the London borough on the development of a community engagement framework aimed at ensuring that all sections of the community, including businesses and individuals, are made aware of developments in relation to the construction programme and local impacts. Indeed, we both attended an event in Camden at which the new facility was launched. That not only provided an opportunity for local people to find out more about the development and the impact that it might have on their lives at various stages of the construction; there was also free hot-desking available for local businesses that might need to use those facilities, and I was very pleased, when we were there, to see so many local people availing themselves of the facilities.

With that in mind, I do not believe that the new clause needs to be included in the Bill. It would duplicate existing obligations, for which we are already accountable to Parliament. I hope, therefore, that the hon. Gentleman can withdraw the new clause and, possibly, avoid further disappointment.

[Andy McDonald]

I am grateful to the Minister for that very interesting response. I assure him that the only thing that keeps me going is the knowledge that we will be successful in 2020. Perhaps I might be sitting where he is—who knows? Having said that, I hear what he says. He addressed my concerns most admirably, and I agree that, given that explanation and those assurances, it is not necessary for me to take this new clause further. I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 28

Report of the cumulative impacts of HS2 works

(1) The Nominated Undertaker shall prepare a report on the cumulative impacts of the works on each community forum area along the line of route.

(2) The report shall outline the key concerns from community groups and if and how these concerns have been addressed.

(3) The report shall be laid before both Houses of Parliament no later than three months after the day on which this Act comes into force.—(Andy McDonald.)

This new clause requires the Nominated Undertaker to report on the likely cumulative impact of HS2 construction works on each community area along the route. This report is to reflect the concerns of the communities affected and outline the ways in which the Nominated Undertaker plans to address these.

Brought up, and read the First time.

[Andy McDonald]

I beg to move, That the clause be read a Second time.

This new clause seeks to address the concerns of communities affected by the HS2 construction works. There have been considerable concerns about the habitability of some of the properties close to the proposed HS2 works in which people are living. We have visited the sites and seen maps that show—certainly in Camden—properties that will not be demolished and will be extraordinarily close to the line of development.

One of the main areas of concern is the individual impact, which HS2 Ltd identified in its environmental statement. However, the cumulative effect of the various impacts on homes and habitability was not accounted for. HS2 Ltd’s methodology was to assess each impact individually. It proposed mitigation only if the impact is considered to be a significant hazard. HS2 Ltd assessed noise and visual impacts in the environmental statement, yet it looked at the combined impact only where more than one limit is breached.

Although HS2 Ltd’s approach is in line with current law, given the significant impact and duration of the scheme and the combined effect of the works, the Opposition believe that HS2 Ltd should go beyond the current statutory minimum to look at how the cumulative impact of the works affects the habitability of properties. There is currently no assessment of the cumulative effect where individual impacts are below the set limits, and there is also no assessment of the knock-on impacts that mitigation measures have.

Camden Borough Council provided an example. A home is close to the construction works. Its residents rely on opening its windows to ventilate it and enjoy the natural light. HS2 Ltd completes a noise assessment that concludes that the home is just below the limit required for noise insulation. Although the residents of the flat will hear the works, they do not qualify for extra window glazing as the noise levels they experience do not meet HS2 Ltd’s criteria. Once work starts, the residents keep their windows shut and their curtains closed to mask the noise, dust and unsightliness of the construction works. However, the lack of air and light to the property increases damp and mould and leads to overheating. The result is that the habitability of the property is affected and the residents’ living standards are reduced.

The concern is that there has not been an appropriate assessment of the cumulative impact of the works. Even if no individual limit has been breached, it is clear that the cumulative impact of the works might be significant, yet at present there is no sufficient mechanism through which the cumulative impact is assessed, which is an issue of concern to those who will be affected by the works authorised by the Bill.