Crossrail: Elizabeth Line

Andy McDonald Excerpts

Tuesday 23rd February 2016 Commons Chamber

[Andy McDonald (Middlesbrough) (Lab)]

I am grateful to the Minister for advance sight of her statement. On my behalf and that of Her Majesty’s Opposition, I am in the happy position of being able very much to welcome the announcement. Crossrail has had cross-party support over its lengthy gestation period, and we all look forward to the considerable benefits that the new line will bring in the years ahead.

The naming of the line as the Elizabeth line is very much welcomed by Opposition Members. We have become used to the title Crossrail in recent decades. The renaming is a significant improvement on Cross London Rail Links Ltd, and Elizabeth is undoubtedly a much more elegant and fitting title for such an innovative and important transport infrastructure development, which will bring the benefit of better transport to millions of passengers from Reading in the west to Shenfield in the east. Given the enormous public commitment that has gone into developing the Crossrail brand, will the Minister give us an assurance that the Crossrail brand and livery will continue to be used?

I pay tribute to the last Labour Government, who took the Crossrail project forward in their 10-year transport plan, “Transport 2010”, in which they reasserted that an east-west rail link should go ahead. Alistair Darling, the then Secretary of State for Transport, announced that the Labour Government supported the new east-west Crossrail link and committed to bringing forward legislation to enable Crossrail to proceed, which was critical in turning the aspiration and ambition of Crossrail into reality.

One of the first ideas of the previous coalition Government, after they came into power in 2010, was to consider cancelling the Crossrail project altogether. Labour Members are delighted that not only is the project back on track, so to speak, but the Government’s conversion to supporting Crossrail has been so all-embracing that they have not only given the project their full backing but decided to dedicate it to Her Majesty. In that, they have our support.

We all expect Crossrail or the Elizabeth line to change the face of transport in London and the south-east, whatever its name. I would like to draw the Minister’s focus to a few points. Crossrail is largely on time and on budget, so can the Minister confirm that it will indeed open on schedule? Will she inform the House of what lessons have been learned from the successes of Crossrail that can be applied to High Speed 2? The Crossrail service will share the Great Western main line to Reading, but sadly the electrification programme has slipped and will cost more than was first estimated. Will the Minister take the opportunity to confirm to the House that the rescheduled electrification of the Great Western main line to Reading will be completed in time for the opening of the Elizabeth line?

I was delighted by the fact that after some 35 years of planning and development, Crossrail finally broke ground on 15 May 2009, when the Mayor of London and the then Transport Secretary, the noble Lord Adonis, sank the first pile into the docklands at the new Canary Wharf station. As we approach the conclusion of this most magnificent engineering undertaking, we remember the name of Crossrail with much affection and admiration. Although Crossrail is not dead, I wish the Elizabeth line a long and successful life.

[Claire Perry]

It is a delight to share, as we often do, a cross-party view—total agreement—on transport infrastructure. I would like to answer some of the hon. Gentleman’s questions.

Crossrail branding will apply for now, but the intention is that from December 2018 the Elizabeth line branding will come into force. The trains are currently under construction, as the hon. Gentleman knows, and it is not expensive to repaint and rebrand them, so I do not think that there are any costs associated with this welcome decision.

The hon. Gentleman asked about lessons that have been learned from Crossrail and that can be applied to Network Rail. I would argue that there are lessons that can be applied more broadly. One thing that has worked well is the fact that the project has stuck to its guns—stuck to its knitting. It has resisted demands for deviations from the route and proceeded with its original plan, which it has delivered very effectively. Crucially, it has blazed a trail in engagement with communities who are affected by the work. I have been surprised, when I have visited stations, by how little the people around the stations realise that the work is going on. That is a tribute to the care and consideration behind that engagement. Another enormously important factor has been the engagement of the supply chain. The majority of supply contracts are let to companies outside the south-east and, in many cases, to small and medium- sized enterprises. Those are two important lessons for the future.

The hon. Gentleman is right to talk about bringing the project in on time and on budget. I emphasise that that is part of the project’s careful planning.

On the question about the vital link between the Crossrail line and the Great Western main line to the west, I am happy to confirm that that work is on time and on budget, and it will absolutely be in place to ensure that the line runs. It is an enormous priority for all of us to ensure that the first trains can run from December 2018.

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[Andy McDonald]

No.

[Claire Perry]

Well, the hon. Gentleman corrects me, but I am delighted to say that this is now happening. Lord Adonis now heads the Government’s National Infrastructure Commission, which has been tasked with looking at—this idea again has cross-party support and consensus—how we can best spend the ongoing investment in infrastructure for the benefit of the British economy.

Great Western Railway Routes

Andy McDonald Excerpts

Monday 8th February 2016 Commons Chamber

[Andy McDonald (Middlesbrough) (Lab)]

I congratulate the hon. Member for Torbay (Kevin Foster) on securing this debate on an important subject. There has been many an excellent contribution. I agree with the hon. Member for Newton Abbot (Anne Marie Morris) that the Great Western railway is more than just a transport system; it is vital to the areas that it serves, which is why it is so important that the Government deliver on their promises on electrification and improved resilience as a matter of urgency.

As was identified by my hon. Friend the Member for the Crown principality of Ogmore (Huw Irranca-Davies), the recent flooding in much of the country has further highlighted the importance of ensuring that our railways are resilient in extreme weather conditions, which we are witnessing with increased frequency. Commuters on the Great Western railway know that only too well. The breach of the Dawlish sea wall in 2014 forced the closure of the line for two months, creating significant disruption. We saw the rails hanging in the air like a rope bridge. I, too, applaud the heroic efforts of the engineers and workers of Network Rail who brought the repair to a speedy conclusion.

A report published in the Journal of Transport Geography on the likely future impact of weather on trains travelling to and from the south-west predicted that up to a third of rail services could be disrupted over the next 100 years. That report, which was described by Network Rail as “key” to long-term developments, underlines the importance of improving resilience in the region.

The Labour party agreed with the Prime Minister when he said that the Government “needed to find answers” because the Dawlish disaster of 2014 “must not happen again”, but his rhetoric has yet to be matched by action. Despite it being said that “money is no object”, the Peninsula Rail Task Force—we have heard a lot about that this evening—has been examining how to improve the south-west’s rail network following the storm damage, but is currently unable to complete its final report because funding is unavailable.

In a letter to the Secretary of State, Tim Jones, chairman of the Devon and Cornwall Business Council, said that the south-west would be at a “severe disadvantage” should no funding be found to complete those studies. If we are to accept what the Prime Minister told the House when he said that “money was no object”, and if we are to believe that the Government are serious about making our railways resilient to extreme weather conditions, they must ensure that funding is available to complete the report. It is of paramount importance that resilience is improved, and the Government should give their backing to the report so that the task force can get on with delivering a railway that is to be relied on come rain or shine.

A number of suggestions have been made for an additional route to Dawlish, including by my right hon. Friend the Member for Exeter (Mr Bradshaw), and by Labour South West, including Tudor Evans, the leader of Plymouth City Council. However, the Prime Minister appeared to prejudge any fair assessment of the options when he backed a new Okehampton railway route as the “most resilient” alternative to the vulnerable Dawlish route, saying that the UK is a “wealthy country” that should be making long-term investments in rail, and that the Okehampton line was worth a “long, hard look”. Will the Minister guarantee that all options for an additional route in the south-west will be assessed on a fair basis? Will she also reassure the House that the funding that the Prime Minister promised will be made available, and that no decision has yet been taken on the route that an avoiding line might take?

So far the Government’s track record on delivering the Great Western main line is poor. Electrification will be delivered late and cost substantially more than initially estimated. Labour committed to electrification of the Great Western main line in 2009, but the estimated cost of that has escalated dramatically since Network Rail made its first assessment in 2011.

[Mrs Sheryll Murray]

The hon. Gentleman has criticised this Government’s track record. Will he enlighten the House about the previous Labour Government’s track record on investing in the Great Western railway line?

[Andy McDonald]

I will happily do so. Let me remind the hon. Lady of the pieces that we had to pick up when coming into government after the disaster of Railtrack and the deaths that were caused as a result of the privatisation of the railways. We do not want to hear any more about that—the investment was significant.

[Mrs Murray]

rose—

[Andy McDonald]

I have given way. Mark Carne, Network Rail’s chief executive, told Members of Parliament in October that the estimate for the project had been £874 million in January 2013, and £1.5 billion in September 2014. He said that because of “inadequate planning”, the cost of electrification could now reach £2.8 billion.

The upgrades that were expected to have been completed by 2018 are significantly behind schedule. Under the original plan, the Reading to Didcot route should already have been completed, and routes to Oxford and Bristol were on schedule to be completed this year. Didcot is now expected to be two years late, in 2017, and Newbury and Oxford three years late, in 2018 and 2019 respectively. Bristol Temple Meads will not have electric trains until 2020, and the east-west rail link from Oxford to Bletchley is delayed until the early 2020s.

Some of those improvements have been delayed by up to four years, significantly affecting commuters who rely on the Great Western line, as well as on the towns and cities that the line serves. Progress on the Great Western electrification has been hampered by this Government putting electrification on hold after the 2010 election, and not fully confirming the project until July 2012, meaning that essential planning work was delayed. The Office of Rail Regulation has said that because a number of major enhancements were added to control period 5 at a relatively late date, several important projects were started in 2014 without being fully assessed. At the start of control period 5, £7 billion of the £12 billion of enhancement spending had not been signed off by the regulator. Calvin Lloyd, Network Rail’s head of long-term planning and funding said:

“There are cost pressures across the whole portfolio of enhancement projects, which should not be a surprise to anyone given that we did not have the level of confidence we might have wished at the start.”

It is the taxpayer, commuters and those who rely on Great Western who will suffer the consequences of poor cost estimation and poor planning. If the Great Western tracks are not electrified according to schedule, the Department will be liable to pay compensation to the private consortium that is delivering the new generation of electric intercity express programme trains. The Department for Transport is considering converting electric IEP trains so they can run on diesel, at an unclear cost to the taxpayer. They may not be able to reach speeds of 125 mph, raising fears that some journeys could actually slow down, compared with today, if electrification is delayed.

The Government’s plans for replacing uncomfortable and inaccessible Pacer trains on branch lines in the south-west are dependent on the success of the electrification programme. If the Great Western electrification project is significantly delayed, passengers in the south-west could endure vehicles for years that the Government have, quite rightly, said are unacceptable in the north of England.

Poor planning and the premature announcement of projects have left commuters uncertain of the future of the Great Western, yet the Government were repeatedly warned that rising costs could lead to some projects being delayed or cancelled. Labour first raised problems with the Great Western main line electrification programme in May 2014, just weeks into the start of the investment period, and challenged the Government to explain which electrification projects will be delayed or cancelled as a consequence of rising costs. Those concerns were echoed by the Transport Committee, which warned in January 2015:

“We are concerned that key rail enhancement projects—such as electrification in the North and North West of England—have been announced by Ministers without Network Rail having a clear estimate of what the projects will cost, leading to uncertainty about whether the projects will be delivered on time, or at all.”

Worse still, commuters were kept in the dark by the Government throughout this period. The chief executive of Network Rail confirmed:

“In mid-March 2015, Network Rail informed the Department for Transport that decisions may need to be made in the coming months about the deferral of certain schemes.”

However, Ministers in the Department are still refusing to say whether they were informed before the election of the plans to defer major schemes. It is now clear that the agreed work could never have been delivered within the agreed budget and timeframe. Yet Network Rail, the Department for Transport and the regulator, the Office of Rail and Road, signed up to the plans anyway, resulting in a great deal of unnecessary uncertainty and confusion. It is passengers and the public who pay the price for such failures, and serious questions must be asked of the Government about how such a shambles was allowed to occur on their watch.

It will be a great relief to passengers reliant on the Great Western that track upgrades will arrive late rather than never. We on the Labour Benches encourage the Government properly to examine their adequacy and the adequacy of Network Rail in budgeting, planning and delivering such programmes in future. It is those issues that should be focused on, so it is an issue of concern that Nicola Shaw, who is heading the Department’s review of the future of Network Rail, has said that privatisation of Network Rail is an option that is on the table. The Government should be asking how better to deliver major projects such as rail electrification in the future, not looking to devote time to managing yet further privatisation and fragmentation of our national rail infrastructure.

[Mr Bradshaw]

Is my hon. Friend aware that, according to the Financial Times, Great Western also raised objections to the possibility of privatising Network Rail, saying it would fragment the system and remove the advantage Network Rail has currently in being able to buy in bulk—and therefore cheaply—on behalf of the taxpayer?

[Andy McDonald]

My right hon. Friend is absolutely right. It is a matter of huge concern that the critical mass of Network Rail is now under threat from this review. It makes no sense whatever to break up a national network. We all remember the days of the private enterprise adventure into our country’s rail infrastructure—and the consequences that flowed therefrom. I would therefore encourage Members strenuously to resist the proposals for the privatisation of Network Rail.

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[Claire Perry]

We have not been asked to put in a penny. Great Western Railway has funded the study, as part of our negotiations with it. No Government money was ever being put into these studies. We stood by to make sure the studies happened—

[Andy McDonald]

Stood by!

[Claire Perry]

No, we were prepared to backstop any shortfall, but Great Western Railway agreed to fund this small part of the overall plan. We are talking about £200,000 to £300,000, as opposed to the £3.5 million Network Rail has already spent. I hope the right hon. Member for Exeter, just for once, is going to crack a smile and welcome something. Go on! Just welcome something the Government have done. No? I think we will move on.

The Government are committed to the region, and these studies will go ahead. This is a vital region of the country for transport investment and economic growth, and I am delighted, as both a south-west MP and the rail Minister, to confirm that those studies will go ahead.

Oral Answers to Questions

Andy McDonald Excerpts

Thursday 28th January 2016 Commons Chamber

[Andy McDonald (Middlesbrough) (Lab)]

In 2011, FirstGroup, which runs Great Western, avoided paying contractual premium payments to the Treasury by choosing not to take up its option of a three-year extension, but in January 2013, the Secretary of State abandoned the competition for a new franchise and simply agreed a renewal with First until 2015, and subsequently announced a second direct award running till 2019, thereby avoiding the inconvenience of a competitive bidding process. Have not the Government made a mockery of free market franchising?

[Mr McLoughlin]

I welcome the hon. Gentleman to his post. As I said last week in a transport debate, I hope he lasts longer than his predecessor—[Interruption.] I think there was somebody in between. The contract to which he refers did have a break clause for First, but it was negotiated by the Labour Government. Therefore, they caused that break and it was part of their contract.

I am pleased to be able to remind the hon. Gentleman of the words of the right hon. Member for Tooting (Sadiq Khan), who I believe has an important role in the Labour party—I hope it is a very unsuccessful one in a few weeks’ time. He said that:

“one reason we are able to invest record sums in our railway service is the revenues that the franchises bring in and the premiums that they pay”.—[Official Report, 1 July 2009; Vol. 495, c. 430.]

He said that when he was in a position of responsibility: that of Transport Minister.

Transport for London Bill [Lords]: Revival

Andy McDonald Excerpts

Monday 16th November 2015 Commons Chamber

[Emily Thornberry (Islington South and Finsbury) (Lab)]

I am concerned about clause 5, in particular, and the idea of limited liability partnerships. As I understand it, limited liability partnerships were established in 1907 to enable people to become partners without taking on the liability. There needs to be a general partner who will be liable for everything, but then those who are coming into the partnership, and perhaps giving money towards it, would not have any form of liability. I understand that it is a means of raising capital, but I am very worried about who the partners might be. We have heard all kinds of scare stories, and I would be very interested to hear some reassurance.

[Andy McDonald (Middlesbrough) (Lab)]

When my hon. Friend describes the scope of limited liability, is it her understanding that the limit of the liability in such a partnership arrangement could be nil? If that is the case, what on earth are we doing thinking about such an arrangement?

[Emily Thornberry]

I believe that that is exactly the position. This legal instrument was created in order to help to raise money. However, the difficulty is that we will be raising money on public land—public for the moment, at least. That is land owned by you, Madam Deputy Speaker, by me and by all of us, and we will be handing over some sort of investment in it to organisations that are cloudy, to say the least. Is there anything to stop these partners being offshore companies or being able to establish themselves with £2-worth of capital? Is there anything to stop documents naming certain people as responsible for the company, only for the Russian mafia to take over at a later stage? Are we handing over Caledonian Road, Old Street and potential developments in my constituency to such people? I certainly hope not, but I am worried that this Bill’s revival may allow that to happen.

--- Later in debate ---

[Emily Thornberry]

My hon. Friend makes an important point. Essentially, the sponsor of the Bill and TfL are saying, “Trust us. Let us enter into limited partnerships with who knows who.” TfL wants to enter into a limited partnership, which is not a distinct legal entity, which has a clear consequence for public transparency. For example, we cannot use the Freedom of Information Act to find out who is behind the partnerships that TfL may get into. TfL says, “Don’t worry about it. We can be trusted.” The difficulty is that TfL’s behaviour during the past few years, with some of the developments we know about, shows that we cannot in fact trust it.

Caledonian Road is not a frivolous example. As the hon. Member for Harrow East said, it is one of the few tube stations that has disabled access that is available to the large number of people who go to watch the highly successful Arsenal football club, but it will be closed for six months. What about Arsenal fans in wheelchairs during that time? TfL cannot look after a tube station with four shafts. It tells me that it needs to close it for six months to renew one of the lift shafts; yet it has two functioning lifts at the moment, both of which it will stop. I said, “The lift capacity is only 50%, so just use one lift while you are repairing the other one.” It replied, “Oh, but what happens if the lift that is in use breaks down?” I said, “Well, excuse me, TfL, but you’ve got lift engineers on site. You are re-doing the other lift shafts, so what’s your problem?”

If TfL has difficulty running a tube station, I have some concerns about its ability as a property developer, particularly if it goes into partnership with others. Those people may be perfectly adequate. TfL may go into partnership with a latter-day Peabody. That would be fantastic, would it not? It would be great if it went into partnership with somebody who really wanted to provide housing that was entirely appropriate for my constituents. The difficulty is that I do not really believe that, and I do not think that the hon. Member for Harrow East does either. TfL is trying to make as much money as it possibly can out of that land, and it will make as much money from affordable housing as it will from luxury flats.

[Andy McDonald]

My hon. Friend hits the issue on the head. Of course the value of the assets needs to be maximised, but the structure is based on the best investment opportunity. It will not be a Peabody Trust that comes along: it will be someone who wants to make the maximum money out of it. That is why the flexibility is there. It is an “ask no questions” policy—“we do not care who you are”.

[Emily Thornberry]

My concern is that we will be the partner who takes unlimited risks. My constituents will not get what they need, but their public assets will have been subject to a fire sale and they will be taking the risk.

--- Later in debate ---

[Emily Thornberry]

There we are. I am very grateful to my hon. Friend. I believe we ought to be focusing on whether the Bill should be revived and whether it will make London a better place. My fundamental belief is that it will not.

There are more questions in relation to the Bill than there are answers. It is about disposing of land all over London, much of it operational land. Some of it may be appropriate for development, but some of it may not. Who is to say whether these shady partners might not be pushing TfL into inappropriate developments? Yes of course we need housing, but where may we have it? For example, there is a large tract of land next to Farringdon station just by Farringdon road that on the face of it is very valuable. At the moment, it is just tracks. Is there a possibility of that land being built over and some form of flats being built there? I do not know.

Is there a possibility of something being built over Old Street? Old Street is a phenomenal station. It has two wells in it. I do not know how it functions as a tube station, but what kind of property might be built on top of it? We may well find these shady partners pushing TfL into developing such areas, which would be entirely inappropriate for the building of flats, even luxury flats. We should be very careful about that.

Another risk of the Bill is that we may end up restricting TfL’s ability to invest more in transport in London, because we have caged in a particular area or built a block of flats on a particular place, not allowing it to continue to develop the transport system that London needs and deserves.

[Andy McDonald]

We have heard examples of investments in other places in other cities, but is there not a stark distinction between other places and London? There is no risk involved whatever in investing in the property market in London. People are investing in a goldmine, so there is no need for special purpose vehicles or any other such arrangements that may not withstand scrutiny. Is that not the reality of the situation?

[Emily Thornberry]

Certainly, the way things seem at the moment is that the property market in London only goes upwards. We will see what happens in the future. There has to be, in the end, a limit to it, and there may be some form of risk. One risk has to be, for example, finding asbestos. If asbestos is found at a development site, what happens then? Again, the risk is nationalised and the profits are privatised.

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[Emily Thornberry]

My hon. Friend tempts me. I understand what he says, and there are times when London MPs argue for investment in our infrastructure, yet wonder why it is that London has to beg when it is the driving force behind our economy—

[Andy McDonald]

rose—

[Emily Thornberry]

I will give way in a moment!

London is a driving force, so it seems a ridiculous idea that TfL can be so short-changed at a time like this, when the economy is supposed to be getting back on its feet, and we are finally coming out of the recession caused by the international financial crisis. We seem finally to be staggering our way out of it, despite the Tories crowing about it over a large number of years. At a time like this—[Interruption.] The Minister says “Staggering?” from a sedentary position. There are 3 million people in this country who believe themselves to be underemployed, and, despite the fact that there may seem to be more people employed, the last lot of statistics show that the number of hours we are working as a nation has gone down. So, yes, I do say “staggering”.

[Andy McDonald]

I am grateful to my hon. Friend for giving way. She is being tempted down a particular path, so I simply wish to bring to her attention the fact that, at least on the Labour Benches, we are all in it together, and there is a momentum and imperative towards us staying together in solidarity, which is the order of the day. We should not forget the regions that have made a major contribution to this city in building its sewers, its stadiums and all the rest of it. I ask my hon. Friend not to be too tempted by the proposition suggested by my hon. Friend the Member for Harrow West (Mr Thomas).

[Emily Thornberry]

I am very grateful to my comrade for bringing me back from the brink. In those circumstances, there is nothing more to say about that.

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

I congratulate my hon. Friend the Member for Harrow East (Bob Blackman), who has been an assiduous campaigner for this Bill and made some very important points in seeking its revival on the Floor of the House today. I have listened with interest to the contributions and I hope to continue to do so. I have say, however, that we have meandered—nay, staggered—round a very circuitous path in talking about this Bill. We have talked about mafias, Moldova and the city of York, which the last time I looked was a little way away from the city of London. We have staggered around a special purpose vehicle, and for some reason the image of a white van is flashing before my eyes.

What I have also noticed is a revival of interest in transport matters on the Opposition Benches. Many Labour Members are frequent and assiduous campaigners on behalf of constituents in London, but there are also those I have neither heard nor seen in my time as the Minister—either at Transport questions or in any correspondence coming across my desk. I am therefore delighted that we are seeing that revival of interest in transport matters this evening.

Let us now return to reality, rather than remaining in the meandering world that we have been inhabiting. The Bill simply seeks to enable TfL to expand its financial freedoms, and to use practices and mechanisms that will allow it to release greater value from its financing arrangements. It is not some back-door attempt to—what was it?—allow members of the Russian mafia in to finance Londoners through special purpose vehicles.

[Andy McDonald]

The Minister says that the Bill is not a back-door deal to let in various nefarious characters, but how does she know that? How can she guarantee that someone will not come along and exploit this arrangement? Given the lack of transparency, we might never know who that person was.

[Claire Perry]

Like many Labour Members, the hon. Gentleman is displaying a complete disregard for the scrutiny role of London Assembly members, and, indeed, for the Independent Investment Programme Advisory Group, which provides the Mayor with independent insurance and expert advice in relation to TfL’s investment programme. Labour Members are displaying a blatant disregard for the devolved authority that we have given to the Mayor.

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[Ian Lavery]

I fully agree with my hon. Friend. Gold-diggers with money to burn will buy the properties, and will not use them at all.

[Andy McDonald]

We talk about outer-London MPs, and there are no more outer-London MPs than those from the north-east and Scotland. This is not just a matter of London votes for London laws; it is a matter for everybody. What we have been seeing in this capital city are safety deposit boxes in the sky, with nobody living in them. Those properties could provide proper housing for the population of London, rather than investments. Does my hon. Friend agree that that is indicative of the way the Government are going? I do not know whether it is true, but I strongly suspect that a contractor might be able to get away without even putting proper finishes on such properties, because nobody is ever going to live in them.

[Ian Lavery]

I thank my hon. Friend. That is the point that I have been making from the outset. The essence of communities in the capital city and elsewhere across the country is affordable properties. Nobody would disagree that we also need private properties. The right balance is needed, and the right balance is different in different areas. But if a huge swathe of properties without the proper finishes is bought up by property developers who live across the globe, what will that contribute to the local economy? Nothing. It will lead to the development of ghost towns in this wonderful city. That is something we must all try to avoid.

The main point of contention, as I mentioned, is clause 5, which refers to limited partnerships. Clause 5 would give Transport for London a new power which would enable it to enter into limited partnerships with private developers and to incur unlimited liabilities. That is a huge gamble with public funds. It is a casino-type economy, which we cannot afford when the economy generally is not at its best. Not only that, but if the Bill is passed, Transport for London could undertake wider activities than it is permitted to undertake now.

[Andy McDonald]

My hon. Friend rightly focuses on clause 5. Does he agree that the reason there is such freedom in the arrangement, as opposed to the return that is going to be made, is self-evident? If somebody is given the maximum possible return, it is because of the freedoms that that delivers. There is a lack of transparency and a lack of accountability in that arrangement which is utterly dangerous. Does my hon. Friend agree?

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[Ian Lavery]

I thank the Minister for that intervention. I am not criticising limited partnerships but the potential for bad limited partnerships, and I am wondering whether it is in the best interests of people in the capital city for transport in London to become part of these limited partnerships. She mentioned the donations that the Labour party has received from limited partnerships. I wish I had done my homework to find out exactly how much the property developers, rather than limited partnerships, have donated to the Conservative party.

[Andy McDonald]

Is there not also a concern about the stamp duty arrangements that are made on these potential transfers down the track? As I understand it, if those are transferred to the limited liability partnerships there will be an exemption from stamp duty. Does my hon. Friend share my concern that before this debate is out we should hear from the Minister the assessment made of the loss of stamp duty as opposed to the returns that will be got on this deal?

Oral Answers to Questions

Andy McDonald Excerpts

Thursday 29th October 2015 Commons Chamber

[Dr Rupa Huq (Ealing Central and Acton) (Lab)]

6. What recent progress his Department has made on its rail electrification programme.

[Andy McDonald (Middlesbrough) (Lab)]

14. What recent progress his Department has made on its rail electrification programme.

[Mr David Hanson (Delyn) (Lab)]

16. What recent progress his Department has made on its rail electrification programme.

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[Mr McLoughlin]

I am sorry that the hon. Lady’s constituents cannot wait until 2019—they waited for 13 years between 1997 and 2010 with nothing happening.

[Andy McDonald]

Teesside has had a hammering in this place over the past weeks, but we are a resilient bunch and nothing demonstrates that better than the magnificent victory at Old Trafford last night. We are top of the league on the electrification taskforce list for the connection between Northallerton and Middlesbrough. Can the Secretary of State indicate when we might expect progress on that important economic development?

[Mr McLoughlin]

I congratulate the hon. Gentleman because I, too, am a football supporter—I support Derby County and any team that plays Manchester United—and his team has done incredibly well. He makes a fair point, and Network Rail uses a huge amount of steel, which helps his constituency. I will look into his point and write to him once I get the results of Peter Hendy’s re-plan.

Transport (Tees Valley)

Andy McDonald Excerpts

Tuesday 10th February 2015 Commons Chamber

[Andy McDonald (Middlesbrough) (Lab)]

I sought this debate on transport in Tees Valley to voice my concerns about how the discussion is developing on the need for greater investment in our transport infrastructure, and on the need for rebalancing our economy both in geographical terms and in terms of a greater focus on our manufacturing industries.

By way of introduction, Tees Valley may be more than 200 miles away from Westminster, but that is no excuse for the concerns of our region being as far away from the considerations of Downing street and Whitehall as they are at present. Last year, I asked the Prime Minister about the huge disparity in spending on transport infrastructure between the north-east and the south-east, and how the needs of the Tees Valley were neglected. In his response, he talked about the Tyne and Wear metro, the Tyne crossing and the A1 between Newcastle and Gateshead, but said not a single word about Tees Valley. I hope this evening to fix the location of Tees Valley better in the Government’s collective memory.

Much attention has been paid recently, and quite rightly, to the One North initiative of our great northern core cities of Manchester, Liverpool, Leeds, Sheffield and Newcastle, and to the transport for the north announcement made just a few weeks ago, which involves the same players, while the Chancellor has talked of an HS3 rail link between Manchester and Leeds, all of which has been set against the backdrop of the northern powerhouse.

All that is to be welcomed, but in this debate I want to explore the current limitations placed on such discussions, and ask whether these matters should be the sole prevail of the self-named core cities. I want to dispel the myth perpetuated by some that the north ceases at the M62. There is a great deal more to the north than that, and I submit that if we are truly to talk of a northern powerhouse and the interconnectivity of our economic engine rooms, it is essential to consider all of the north. In doing so, it is imperative that the role of Tees Valley should be properly considered.

I will concentrate in the main on rail infrastructure. It is telling that modern Middlesbrough came into being as a direct result of the creation of the railways and the founding of the Stockton and Darlington Railway Company to serve as the river access point for receiving coal from the Durham coalfields on the banks of the River Tees for onward shipping. Middlesbrough was subsequently propelled into the industrial revolution by becoming the site of the explosive iron and steel industry. It was described by Gladstone as the “Infant Hercules”, and it soon became the fastest-growing town in European history. Despite that railway heritage, Middlesbrough, which is now at the heart of a conurbation of some 660,000 people, is the largest conurbation in the UK without a direct service to the capital.

There are far too many aspects of the economic powerhouse of Tees Valley for me to cover in the time available, but the sub-regional transport needs must be seen in the context of the Tees Valley’s industrial and commercial might.

[Alex Cunningham (Stockton North) (Lab)]

I congratulate my hon. Friend on securing the debate, which is crucial to Teesside and the wider Tees area. I appreciate that he is concentrating on rail, but the Tees Valley local enterprise partnership reminded us today that we have no major road network and are forced to rely on secondary roads such as the A19 and the A66, which impacts on our ability to attract jobs. Does he agree that, as well as direct rail routes to London with electrification on the lines, we need 21st-century roads, including another Tees crossing, if we are to serve Teesside properly?

[Andy McDonald]

I wholeheartedly agree with my hon. Friend, who is absolutely right. One glance at a road atlas will show the complete absence of blue roads—motorways. We need one or two of them in our region.

The industrial might of the Tees Valley is a key component of the north-east of England’s manufacturing prowess. London apart, our region is the only one in the UK that consistently makes a positive contribution to our balance of payments. We lead the way in advanced manufacturing and export-led growth.

Tees Valley’s integrated chemical complex at Wilton, Billingham and Seal Sands is the biggest in the UK and second-largest in Europe. It sits alongside the steel industry—two vital foundation industries side by side. The Tees Valley economy contributes significantly to the north. It contributes some £11.5 billion of gross value added to the national economy every year. We have a thriving digital and creative industries cluster, which grew faster than that in any other LEP area in 2014. We have a 280,000-strong highly skilled work force, and a small businesses base of more than 14,500 firms.

We also have the UK’s third largest port, Teesport, which provides an international gateway, distributing products across the country and abroad. As a contemporary sign of its vitality and importance, PD Ports has just signed a seven-year contract with Sahaviriya Steel Industries for the continued shipping of its steel products.

Our leading colleges, our universities and national knowledge centres are at the forefront of skills development and innovation. Tees Valley also has an international airport, albeit one that is crying out for investment and redevelopment—we look to Peel airports to better develop the airport services—and we have direct road and rail routes to key locations across the north.

There is a consensus on the importance of reducing the UK’s trade deficit and rebalancing the economy. If that is to be achieved, it is important that Tees Valley and its mighty industries play their full role. Exciting developments in the energy-intensive industries hold great potential for our region and our country. Strictly subject to the science being right and there being verifiable safeguards, hydraulic fracturing and coal gasification have enormous potential for our future energy and industrial requirements. There is not time this evening to go into the detail, but subject to those safeguards, the future could be truly exciting. The major beneficiaries from the syngas so derived are the energy-intensive industries, and none more so than those on Teesside.

I must mention the Teesside Collective, a pioneering infrastructure project comprised of a cluster of leading industrial players—BOC, Lotte Chemical UK, SSI and GrowHow—which offers a compelling opportunity for the UK to progress its industrial and environmental interests at the same time. Work is already under way for the development of a business case for deploying industrial carbon capture and storage in the Teesside cluster. It will be completed later this year. Tees Valley is in the right place at the right time to become the industrial carbon capture storage leader in Europe. It is therefore essential that the Government provide the necessary support that such key foundation industries need, which in turn will allow our manufacturing industries to compete on a global stage. Good rail and road infrastructure for freight and passengers is essential to all of that.

On 17 January, the Secretary of State for Transport attended the launch in Leeds of Transport in the North, a body of regional leaders tasked with drawing up and delivering a comprehensive programme of strategic investment to transform the north’s infrastructure, and helping to maximise growth. I argue that, if that particular body is to properly speak on the transport needs of the north, it is wholly inappropriate if Tees Valley does not sit alongside the five cities on the board.

[James Wharton (Stockton South) (Con)]

I congratulate the hon. Gentleman on securing what is a very important debate. I think across the House we can all agree that it is in the interests of the areas we represent to talk up Teesside and the great things happening there: steelmaking is back, train-making is coming and investment is coming in. This is a very important cross-party point: Tees Valley LEP needs to be represented, as those other bodies are, to give our area the strong voice it needs. I want to voice my support and to make it very clear that this is something that unites MPs from different parties, and council leaders and groups, in support. We need to ensure our voice is strong and heard.

[Andy McDonald]

I thank the hon. Gentleman for that intervention. I think we are speaking with one voice for Tees Valley and I am grateful to him for his support.

Quite simply, the Tees Valley transport infrastructure, opposite the existing and future needs of businesses and communities, is lacking in key areas, and those deficits need to be addressed if we are to capitalise on the terrific potential of our region. Undoubtedly, Tees Valley is not configured like the self-styled core cities, but it has its own unique configuration and status that warrants a seat at the table. The Minister will be aware of the excellent inclusive outcomes that have been achieved in the governance arrangements for Rail North, and I hope he will agree with me that it would be entirely sensible to take that sort of inclusive approach in terms of the board of Transport for the North. I urge the Minister to take the necessary steps to ensure that Tees Valley has a seat.

It is regrettable that the state cannot currently compete alongside private companies for rail franchises, but putting that argument to one side for another day I am nevertheless pleased that on the awarding of the new franchise the business case has been won for the reintroduction of a direct Middlesbrough to London rail service, so I need not repeat it. Clearly, the economic growth that this will deliver is unarguable. The disappointment is that the service will come into being only in five years’ time in 2020. I wish to place on record my thanks to the Under-Secretary of State for Transport, the hon. Member for Devizes (Claire Perry) for meeting me to discuss this matter last week. I would like to think that she was persuaded by the veracity of the case for accelerating the start of the service. I hope that Virgin East Coast can find ways and seize whatever opportunities present to bring forward the start date of the service.

Turning to a matter that concerns Network Rail, just over a year ago the main entrance to Middlesbrough station was closed because of structural difficulties with the Victorian cloister buildings that sit underneath the station main car park. This means there is now no vehicular or indeed pedestrian access to the station from the main southerly aspect, because of the inherent dangers. A year on, plans are now being progressed to board up the frontage, install signage and prepare alternative parking arrangements while architects and engineers go about preparing plans for reconstruction and development. All well and good, but this is all simply far too slow. The people of Middlesbrough deserve better than this. They pay their taxes, unlike some HSBC super wealthy customers. I can only look on with envy at the £895 million redevelopment of Reading station. It looks fantastic and is entirely fit for purpose in the modern railway age. Back in Middlesbrough, however, progress is painfully slow. The town’s people are incredibly patient—they’ve had practice. Indeed, while Dresden, Frankfurt and Berlin were all rebuilt in the aftermath of the second world war, Middlesbrough railway station’s beautiful glass and steel-domed roof was destroyed by the bombs dropped by the Luftwaffe in 1942 and we are still waiting for it to be put back. I urge the Minister in turn to press home the need with Network Rail for much greater urgency and I plead for better communication. It surely cannot be too much to ask for there to be a dedicated website to explain directly to the public what the problem is, what they are doing about it and how long it will all take to put right.

Turning to Darlington railway station, which is the sub-region’s east coast mainline hub, there are significant encumbrances, but their resolution will facilitate significant developmental opportunities. I am confident that my hon. Friend the Member for Darlington (Jenny Chapman) will not mind me trespassing, but the entrapment of the local west-east line out of Darlington station, between the north and southbound lines of the east coast, causes immense difficulties in terms of managing the competing traffic demands. It is also a source of congestion and delay for the east coast service itself. The accepted solution is to move the local line from its current configuration and relocate it free of the mainline crossover. Not only will that improve both local and long-haul services, it will free up a major commercial developmental opportunity within the station itself.

All that was brought into stark reality for me just two weeks ago, when changing trains from the King’s Cross Darlington train for the Darlington-Middlesbrough train. The local train was a Pacer train—perhaps one of the worst in the fleet with the metal-framed bus seats. There was a problem with the points, and there were no trains in or out of Darlington for more than an hour. On a bitterly cold evening, the choice facing passengers was to step out on the freezing platform or to wait in their seats and suffer the dreadful poisonous diesel fumes coming into the carriages. That these are our travelling conditions some 200 years after George Stephenson created the first passenger railway in the very town of Darlington simply beggars belief.

My plea to the Minister is that we get rid of these cattle trucks as quickly as possible and replace them with some decent forms of transportation. David Higgins, the CEO of HS2, has himself said that if the good people of the south of England were asked to tolerate such appalling rolling stock, there would be riots. The time for change is long past. I know that the Secretary of State has been pressed on this, but they need to go, and to go quickly.

With more than 70% of major local businesses internationally owned, we remain globally competitive by offering effective transport links and resilient infrastructure. Undoubtedly, rail connectivity needs to be improved, and electrification across the north of England is crucial to this objective. While the TransPennine and Northern franchises have yet to be awarded, it is absolutely essential for the vitality of Tees Valley, the entire northern region and the UK as a whole that good and direct links be preserved and developed right across the north to include direct services from Middlesbrough to Leeds, Manchester and Liverpool.

The argument for electrification has long since been won. I shall not recite the environmental and economic justifications, but the benefits to Tees Valley would be enormous. Much is said about the interconnectivity of our core cities, and rightly so. We have to address that issue, but the same principle applies to interconnectivity within regions such as the north-east and sub-regions such as Tees Valley. It currently takes up to one hour and 36 minutes to travel between Middlesbrough on the Tees and Newcastle on the Tyne—a distance of 40 miles by road between the two major conurbations; and it takes 53 minutes to travel from Saltburn to Darlington by way of a bone-shaking Pacer that has no part in modern-day transport in one of the richest countries on the planet. Mo Farah would give it a good run for its money! I know that the electrification taskforce will report imminently, but I trust that the Minister will agree that the case has been more than made that electrification from the east coast main line from Northallerton through to Teesport is a top priority.

The concept of the Tees Valley metro has been on the stocks for some considerable time, but only electrification of the existing sub-regional network could make it feasible. A light rail or tram system would be trans- formational for Tees Valley.

The way in which bus services are currently delivered is encapsulated in the stories I hear when I speak to Avanta, which is charged with delivering the Work programme. It tells me that far too often it can source entry level work at places such as Teesport and elsewhere across Tees Valley, only for it to prove impossible for the client physically to travel to such places of work at the times the businesses need them and/or to get home again. Quite frankly, we do not have a public transport system worthy of the name.

My constituents in places such as Berwick Hills tell me of the lack of buses to get to the hospital. It is essential that when powers are devolved to combined authorities they include the re-regulation of buses, in the way that benefits London, and mandatory comprehensive transport coverage for accessing health services and other key destinations. A truly integrated transport system must be one where bus, road and rail services coalesce around the needs of our businesses and communities.

[Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)]

My hon. Friend makes an excellent point about the bus service through Park End. This follows the recent news of the closure of the medical clinic in Park End, which also served his constituents in Berwick Hills. Not only are primary health care services being cut, but access to secondary health care services is being reduced as a result of the bus service terminations.

[Andy McDonald]

My hon. Friend makes a good point. People need to get to hospital when they are ill or visiting relatives, and they need to get to work at the time their businesses need them and then get home again.

Almost finally, roads warrant an entire debate of their own, but as my hon. Friend the Member for Stockton North (Alex Cunningham) said, Tees Valley is crying out for an additional road crossing over the Tees. Several plans have been prepared over the years, and I would urge the Minister to have his officials consider them.

In conclusion, Tees Valley has a proud history of major contribution to the economic vitality of this country, and not only does it continue to make that contribution, but the capacity for even greater achievement is immense. However, that vast potential can only be realised if the Government understand and respond in appropriate terms. In addition, I ask that the core cities realise that the northern powerhouse story is not just about creating a London of the north, but about building interconnected communities and economies that provide inclusive prosperity for all.

Oral Answers to Questions

Andy McDonald Excerpts

Thursday 22nd January 2015 Commons Chamber

[Mr McLoughlin]

I am concerned if work that has been started on a project has not been completed. I will contact Sir Peter Hendy of TfL and write to my right hon. Friend.

[Andy McDonald (Middlesbrough) (Lab)]

Last week, a disabled passenger at Middlesbrough railway station was trapped on platform 2 because of the failure of the lift and had to travel to Saltburn at the end of the line to get to platform 1. Will the Under-Secretary of State for Transport, the hon. Member for Devizes (Claire Perry), encourage Network Rail to accelerate its programme of investment in Middlesbrough railway station, which is much overdue, and meet me to discuss the acceleration of the direct service from Middlesbrough to London? I wrote to her many weeks ago and I have not had a response.

[Mr McLoughlin]

I am sure that my hon. Friend the Under-Secretary will be more than willing to meet the hon. Gentleman. With regard to the particular problem that he described today, obviously, when a lift breaks down it creates problems. That can happen occasionally and I very much regret it when it does. I think that Middlesbrough station will benefit from the new franchise that we have let, with more services coming to London.

Oral Answers to Questions

Andy McDonald Excerpts

Thursday 4th December 2014 Commons Chamber

[Mr McLoughlin]

I am glad that I have pleased my hon. Friend on one particular subject, on which he and my hon. Friend the Member for Cleethorpes (Martin Vickers) led a successful campaign. On electrification, we are now starting work on what will be in the next control period and I will take what my hon. Friend the Member for Brigg and Goole (Andrew Percy) has just said as part of those representations.

[Andy McDonald (Middlesbrough) (Lab)]

If Tees valley and its mighty industries are to play their full role in the much vaunted northern powerhouse, it is essential that the electrification of the east coast line from Northallerton to Middlesbrough and on to Tees port—the UK’s second largest exporting port—be prioritised. Will the Secretary of State ensure that that section of line is included in the forthcoming schedule?

[Mr McLoughlin]

I have set up a taskforce to give me a report, and I am not going to say what will be in the report before I have even received it. As I said earlier, the taskforce is looking at some 72 routes at the moment.

[Andy McDonald]

Give them a nudge.

[Mr McLoughlin]

The hon. Gentleman says from a sedentary position, “Give them a nudge.” I think he has just done that.

Taxis and Private Hire Vehicles

Andy McDonald Excerpts

Tuesday 29th April 2014 Westminster Hall

[Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)]

Thank you, Mr Chope, for the opportunity to speak in the debate. I congratulate my hon. Friend the Member for Easington (Grahame M. Morris) on securing it and on expounding a well worked-out argument, with which I am certain that most hon. Members in the Chamber agree. The Law Commission consultation is extensive, asking many questions and offering several sensible proposals. I will focus on my concerns about the accessibility of taxis and private hire vehicles for disabled people.

At the beginning of this year, Boro Taxis, which operates in the south Middlesbrough part of my constituency, hit the headlines in national and local media outlets following what many might see as exploitation of and disregard for disabled passengers. On 31 December 2013, Middlesbrough council’s licensing department was reported to have found that a number of private hire operators were charging disabled passengers—wheelchair users, in particular—up to twice the standard fare, with licensing officer Tim Hodgkinson arguing that this was a “widespread” practice and a “direct consequence” of passengers’ disability.

The council sent notices to the relevant operators advising them that it considered the practice to be in breach of their regulatory and statutory obligations. I am sure that most hon. Members find such flagrantly discriminatory practices repugnant. Disabled people throughout the country struggle to access transport as is, and to charge them extra because of their disability strikes me as totally wrong.

[Andy McDonald (Middlesbrough) (Lab)]

Does my hon. Friend agree that one of the fundamental principles underpinning the Equality Act 2010 is that disabled customers should not be treated on less favourable terms than able-bodied customers, and that surely extends to the price that fare-paying taxi customers are charged for the same journey? If that happens under the existing regulatory framework, what on earth will things look like if the deregulation programme goes ahead?

[Tom Blenkinsop]

I agree with my hon. Friend. Such circumstances are occurring now, while the trade is regulated, but my fear is that with further deregulation, instances such as the one I described will become increasingly common and harder for local authorities to monitor and to manage.

On 11 January 2014, somewhat astonishingly, the owner of Boro Taxis, Mr Bashir, admitted that his own company policy at the time was “morally totally wrong”. The firm, however, subsequently started to refuse to carry any wheelchair users, arguing that it would be “uneconomic” to do so. News of the Boro Taxis decision resulted in a ferocious backlash, and thousands of social media users, many of whom were likely customers, called for and pledged to a boycott of the firm.

The company quickly performed a welcome U-turn on the decision, given the ensuing negative publicity, but the issue continues to be one that users of the taxi service talk about and it is often referred to when the firm is discussed. That there was even such a proposal in the first place, however, I fear shows an unwelcome eagerness to discriminate and to treat disabled passengers as liabilities, rather than as valued customers. My main fear about the proposed deregulation of the trade is that such practices will become more common.

That is only one case, but it demonstrates a problem that I suspect, from communications from disabled people throughout the region, to be systemic. The Law Commission is therefore correct to identify equality and the needs of disabled passengers as an area in desperate need of legislative reform. In the consultation, disability groups highlighted the lack of training and disability awareness among taxi and private hire drivers, with issues such as an increased risk of injury due to wheelchairs not being properly secured, or a deaf passenger being unable able to communicate effectively with the driver. That is of course a two-way street: drivers may also injure themselves while helping disabled passengers in an inexpert fashion. Employers have to ensure that their drivers are trained and compensated properly for such training.

Some excellent training schemes are available to drivers on all aspects of dealing with people with a disability, such as loading and unloading wheelchair users, securing the wheelchair, or how to operate the swivel seat, the hearing loop and so on. More importantly, however, training will ensure that drivers and indeed taxi firm owners are aware that it is imperative to treat all people of differing abilities with dignity.

Various training schemes have been adopted by local authorities, but I firmly believe that national safety standards should be applied as a minimum and that this should include disability awareness training. On a business level, there should therefore be a fair playing field and a good standard of customer services maintained for all, especially disabled people, nationally. Furthermore, a statutory requirement should be placed upon licensing authorities to take steps to ensure taxi and private hire drivers’ compliance with their equalities obligations.

Middlesbrough council’s report into accessibility, which highlighted the issue of charging disabled passengers extra, was a welcome step. It will have made a real difference for disabled people in the town. That should be the practice nationwide, and it should be done on a regular and standardised basis. I am aware that some councils are hesitant to undertake monitoring and testing due to concerns about the safety and welfare of their employees, but a statutory requirement of that kind could be met through regular consultation with disabled passengers by licensing authorities, and through improved and easier reporting structures for recording incidents.

Oral Answers to Questions

Andy McDonald Excerpts

Thursday 20th March 2014 Commons Chamber

[Mr Goodwill]

I know that this is what is known as a parliamentary service, which does save the cost of closure, but given that the passenger numbers were 900,000 in 2006 and 161,092 in 2013, action on more than just public transport links will be required to ensure the airport’s future.

[Andy McDonald (Middlesbrough) (Lab)]

The Minister will know that the Tees Valley metro was seen as a key component in establishing better links to the airport. That concept appears to have slipped somewhat. Will he meet me to discuss the viability of the Tees Valley metro so that we can pursue our economic ambitions right across the Tees valley?

[Mr Goodwill]

I will be more than happy to do so, and ensure that Teesside has the same good transport links from which many other parts of the country benefit.