Rail Announcement
Lord Grayling Excerpts(6 years, 9 months ago)
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The Secretary of State for Transport (Chris Grayling)
With your permission, Mr Speaker, I would like to make a statement about the future of the west coast main line, our plans for the integration of track and train on our railways and our plans for the transition to the operation of High Speed 2 as it opens up in 2026.
I have already set out for the House our plans to bring the operation of track and train together on a day-to-day operational basis around the country, with the creation of new alliances between Network Rail and the train operators on south eastern and midland main line and the strengthening of the existing alliance arrangements on south western and southern. I have also set out our plans for a new partnership between the public and private sectors to operate the east coast main line.
Today I want to explain how this approach could start to inform the development of the west coast main line and HS2. I am also today publishing the invitation to tender to be the new west coast partner, which, subject to their delivering on their commitments, will operate the route until 2031 and will work with HS2 Ltd to pave the way for the opening of HS2. The west coast main line is one of the busiest mixed rail routes, if not the busiest, in Europe: it carries commuter traffic to six of our biggest cities and express trains between them; it provides essential intermediate services to places such as Milton Keynes, Coventry, Warrington and Preston; it is an essential link to north Wales, Scotland and Ireland; and it is also one of our busiest freight routes. It is this complex mix of traffic that is a key part of the case for building HS2 so that we have the capacity to meet these growing needs in the future.
The west coast franchise has been very successful in recent years, with high passenger satisfaction and substantial revenue growth for the taxpayer. I intend the new contract to build on that, up to and including 2026. There is already a close working relationship between Network Rail and the train operator, and I intend that to deepen under the new contract with the new operator. After that, however, the way in which we run the railway will change. After 2026, the express services will start to move off an increasingly congested part of the existing network and on to HS2. Brand-new and more frequent trains will provide additional capacity on faster services, and space will be freed up on the existing routes for improved services to other destinations. That will require a carefully managed transition as initial services provide travel to Birmingham and then, gradually, the HS2 network provides more and more of the inter-city service.
I want to explain today how the new contract will ensure that that smooth transition takes place, and to set out what we are working towards. I should emphasise that final decisions on the transition and the operational details are years away, but I think it right that, as we publish this new invitation to tender, we start to look towards what that end point could be. For example, HS2 could be an integrated railway operation, in charge of both its infrastructure and its services. That would be akin to what is provided on some Japanese high-speed lines, and would accord with the Government’s strategy of bringing together track and train. It could also be structured as a public-private partnership. There will be other options that we should explore before final decisions are made.
The exact shape and end state of the organisation does not need to be decided now, but I am very clear about one thing. I want HS2 Ltd to become a strong British organisation, potentially capable of not just building but operating a successful railway here. It should also become a strong international champion for the United Kingdom, as the organisation that runs Manchester Airport has done. Manchester Airports Group is a strong and effective organisation that has expanded in the UK, running first-rate operations here, and is now doing so internationally. It has proved itself to be effective at managing major projects and delivering good customer service. Today’s announcement, however, is not about creating a long-term organisational model for HS2. As we move into the 2020s we will need to prepare for the introduction of services, and through this new arrangement my Department is paving the way for that introduction.
The winner of the competition will help to design the new HS2 services, develop a new customer offering to take advantage of 21st-century technology and revolutionise the way we travel on high-speed rail, and provide input for my Department and HS2. It will run the existing west coast main line services until HS2 passenger services are introduced. After that it will continue to run successor services on the west coast main line until 2031, albeit to a different set of timetables and priorities, with a refocused service aimed at those intermediate locations. Between now and the start of HS2 services, it will also help to plan the introduction of the express trains to the new line and the move from one line to another, and help to put in place all the customer-facing resources that are necessary for the delivery of an excellent service on day one. If it performs strongly, it will also operate services on behalf of HS2 for a limited period after 2026. During that period, my Department will be closely involved with operations to ensure that the envisaged connectivity benefits of HS2 are realised.
The contract also includes a number of safeguards such as restrictions on branding, transfer of intellectual property and requirements for collaboration with HS2. That means that, while we will harness the innovative thinking of the private sector, no one bidder will be able to create something that only it could run in the future. The operator will also work with the Department and HS2 to consider the options for the end state, including what would be required for the transition to fully integrated operations undertaken by an eventual combined organisation. That short-term arrangement will be very similar to the modus operandi on Crossrail next year after it formally begins services as the Elizabeth line for Transport for London.
Throughout this period, the new operator will also deliver a high-quality experience for passengers and continue to drive growth on the existing west coast main line. Passengers will benefit from enhanced compensation for delays of more than 15 minutes, fares and ticketing systems that are simpler to understand, and the introduction of an accessibility panel to advise on all aspects of the way in which the railway is operated. It is important to ensure that all passengers are placed firmly at the heart of all planning decisions.
What I am setting in train today for the West Coast Partnership are our plans to keep industry-leading services on the west coast until HS2 enters operation, to ensure that the first HS2 services are delivered with the help of an experienced operator that has been working hard to plan for their introduction, and to use that approach to help to inform decisions on what the final shape of the organisation should be. I believe that that is the best way of ensuring a smooth transition to what will be an exciting new future for our railways, and I commend my statement to the House.
Rachael Maskell (York Central) (Lab/Co-op)
I thank the Secretary of State for advance sight of his statement, but I am perplexed as to why he has come to Parliament to announce a set of administrative arrangements. There are so many pressing rail issues that the Secretary of State should be bringing to the House, not least the promise to come back to the House about future arrangements on the east coast, which was of course due weeks ago, rather than to announce invitations to tender for rail franchises. If this House spent all its time looking at every franchise, we would not get through any other business. The statement is simply thin gruel. Once again it sets out vague aspirations and possible options. Yet again it is evidence that the Government will not set out a strategic direction, but instead just delegate decisions to the private sector.
There are huge questions about the recent history of track and train alliances. That did not work on the south-western railway; it failed. Why will it be any different under this partnership? Today’s announcement about an announcement is setting the course of the Government’s real priority, which is privatisation of the infrastructure: a partnership with a private company, but extending its grip into the infrastructure, too.
Why would the Secretary of State bring the profit motive back into safety-critical parts of the railway? We must never forget why Labour brought Railtrack back into public ownership: it was for the safety of the great British public. None of us on the Labour Benches will ever forget the past, and how private profit was the objective. With private, we know that the objective is to put money into the shareholders’ pockets, not to invest in the public. This is why Labour’s plan to rescue the railways and bring them back into public ownership is more imperative than ever; the public demand it. Labour would never take such a risk with public safety, nor with public money.
Last month’s supplementary estimate report said that the Department for Transport’s rail revenue from train operators was down nearly £250 million this year and a Treasury bail-out of £60 million was needed. That is hardly evidence of a system working, is it?
Franchising has completely failed, with 13 direct awards and extensions to contracts. The west coast, however, is the jewel in the crown of the rail network. The Labour Government spent £9 billion upgrading it, but now the Secretary of State wants to flog off the family silver before it is even in public hands.
The UK railways have the best safety record in Europe; will the Secretary of State’s plans guarantee this excellent safety record? The UK railways’ safety record has been based on a rigorous risk management system; how will these plans ensure that the risk management approach will continue across the whole network? Is this not a return to the bad old days of Railtrack?
Of course, the railway is about the growth of our economy, and the Secretary of State is handing over responsibility for the economy of the north to these private companies; no wonder people do not believe in the northern powerhouse. Why will the Secretary of State not do what the last Labour Government did in 2009 and take this franchise back into public ownership? That is the best way to preserve the taxpayers’ money and the public interest.
Labour’s integrated public rail will benefit the economy, the environment, the Treasury and the public. We look forward to the right to run our railways again.
Chris Grayling
This is the first time that I have been told off for being informative to the House about what we are doing. We are publishing today a pathfinding franchise agreement that will pave the way for Britain’s most expensive and most substantial new railway for more than 100 years, and I am explaining to the House how we are approaching the issue of making that transition. This does not seem to me to be something I should not be informing the House about, but I am always surprised in this place.
The trouble with Labour is that it just thinks everything private is bad; it seems to be a completely ideological statement. After many years when the Labour party took a relatively common-sense approach to the balance between public and private, it has now walked a million miles away from that: everything private is bad, and it wants to nationalise everything and drive investment out of this country. Let us take an example. Labour cannot explain to us, in its plans to renationalise the railways, what it would do with what will by then be approximately £19 billion of privately owned trains on the network. All the new trains that are coming now and all the new trains that are being delivered in the future are privately owned. Where will the money come from to pay for those, and to pay for the new trains in the future? We get no answer at all from Labour on any of that.
The hon. Lady talked about safety, and safety is paramount in this country. We have an excellent regulator, and an excellent chief inspector of railways who does a very effective job, in my view, of holding the public and private sectors’ feet to the fire to ensure that we maintain safety standards on the railways. That is something that will continue for the future. She also asked about the northern powerhouse. Let us look at how little investment in the railways took place in the north when Labour was in power. We are replacing every single train in the north, and I have just announced a £3 billion upgrade to the trans-Pennine rail line. We have done upgrades to the Calder Valley line and electrified the line between Liverpool and Manchester. We are currently electrifying the line to Preston. Those are things that never happened under Labour. The replacement of every single train in the north of England is something new or nearly new. None of that happened during Labour’s 13 years in power.
The hon. Lady wants to take the west coast main line back into public ownership, but that is a railway line that is performing well and has very high levels of passenger satisfaction. The last thing we would want to do is to hand it back to the Government. Let us allow it to carry on succeeding. That is what we are aiming to do. We are setting a path that will lead us to what I hope will be a fantastic new world for Britain’s railways when HS2 opens after 2026.
Trudy Harrison (Copeland) (Con)
I thank the Secretary of State for his statement. It will be welcomed across my constituency and throughout Cumbria, as will the introduction of Sunday services, starting in May, which will connect us to the west coast main line. Will he tell me what economic advantages this will bring to Copeland and to Cumbria?
Chris Grayling
The difference that HS2 will make is that it will provide far more capacity and better connections across the whole country. Whether you are coming to London from Cumbria, Manchester, Liverpool or Birmingham, or travelling to points in between, there will be more capacity, faster trains and better connections between intermediate places. That is so important. I am delighted about the arrival of the Sunday services in my hon. Friend’s constituency. She and I stood at Seascale station while a Pacer train chugged past, and she will be delighted to know that in a few months’ time that Pacer train will be in the scrapyard.
Alan Brown (Kilmarnock and Loudoun) (SNP)
I thank the Secretary of State for giving me advance sight of his statement, but it really is lacking in detail. He said that he had already set out plans for a new partnership for the east coast main line, but I suggest that the plans for that line are still unclear. We need a lot more information on that. He also said that the congestion on the west coast main line and its links to Scotland and other areas underpinned the business case for HS2. That raises the question of why HS2 is being built only as far as Crewe, and why a north-south link is not being constructed at the same time.
The Secretary of State has detailed possible methods of operation, but he has said that they do not need to be decided on now, so what are the timescales for deciding future methods of operation? Will he confirm that the public sector will be involved and will be allowed to bid? When will we know the new timetables and priorities for the west coast main line? What will be the bid status for companies that have failed in existing franchises? The existing west coast main line contract was supposed to look at the remodelling of Carstairs Junction, so will he give us a progress report on that? Will he also tell us what discussions he has had with the Scottish Government on the existing underfunding of the rail settlement to Scotland, and on the impact that that could have on the west coast main line?
What tender appraisal lessons has the Secretary of State learned from existing failed franchises? What checks and balances will there be to ensure that we do not see further compensation disputes, conflicts of interest and armies of cost consultants involved in these franchises? What west coast main line upgrades will there be north of Crewe? I note that the current proposals will mean that new HS2 trains will run more slowly north of Crewe than the existing Virgin trains do. That would be an unacceptable performance measure, so will he tell us what upgrades are planned for north of Crewe? Lastly, his Department has already needed £60 million from the Treasury to balance the books this year because of the failures in the existing franchise system. How sustainable will the future franchises be?
Chris Grayling
On that last point, there was a revenue issue last year around Govia Thameslink Railway and the completely unnecessary strike action taken by the unions. I am happy that that railway is now mostly back to normal and I hope that we will not have that issue again. The hon. Gentleman asked about the east coast main line. I will come back to the House when it is the right moment to do so, when we are ready to set out the approach that we are going to take. It is important to ensure that that is dealt with on a value-for-money basis but also on an operational basis, to ensure that passengers are not affected by the trouble on that route at the moment.
The hon. Gentleman asked about timetables on the west coast main line. That will come from the bids that are tabled for that particular route, depending on how the bidders plan to enhance services. The invitation to tender starts today, and we will start to get the proposals back during the course of this year. Of course, no one can bid for a franchise without a passport, and that will continue to be the case. He also asked about the funding level for Scotland. I simply remind him that the Government have provided more than would have been provided under the Barnett formula. Scottish Members normally argue for the Barnett formula, except when it is inconvenient for them to do so. The reality is that they should be glad to get anything more than the Barnett formula, because that is what they always argue that Scotland should receive.
The hon. Gentleman asked about learning lessons from failure. As I said in my previous statement on the east coast main line, we have tightened the risk-sharing mechanisms and we will be watching this particular franchise like a hawk to ensure that it is financially solid and robust. He also asked about the speed of journeys to Scotland. Of course, HS2 will reduce journey times to Scotland. There is an issue north of Crewe because the new classic-compatible trains are not tilting trains, and that is something we will have to address as we go through the 2020s, but the reality is that journey times to Scotland will be reduced as a result of HS2 arriving. That is part of delivering better services right across the country and, crucially, delivering jobs right across the country. That will happen all across Scotland, Wales, Northern Ireland and England.
Andrew Jones (Harrogate and Knaresborough) (Con)
I congratulate my right hon. Friend on his statement. What he has outlined will mean a smooth transition to the national network upgrade that HS2 will deliver. Will he give the House a little more information about what the announcement will mean for passenger rail fares on the west coast main line?
Chris Grayling
It is really important that HS2 does not become a premium service that today’s passengers cannot afford to travel on. Our expectation is that fare structures will stay broadly similar, and it is certainly not my intention to create a situation where HS2 suddenly becomes much more expensive than the west coast main line is today.
Lilian Greenwood (Nottingham South) (Lab)
There was not actually much new information in the Secretary of State’s statement, but it is clear that this invitation to tender is late, because it was expected in November last year. Will he explain the reason for the delay and its implications? Can he confirm that the award date is still November 2018, and that the new franchise will still start on 1 April 2019? Will he tell us whether the delay will have any wider impact on the Department’s rail franchise schedule?
Chris Grayling
We do not expect this to have a significant impact on the franchise schedule. As the hon. Lady knows, we have just put in place a direct award to tide us over because of the delay. Things might be slightly late, but we are broadly in line with our original timetabling plans. It is important to get these things right. Also, given that the franchising team has had quite a lot to deal with lately, it is important to ensure that they have the time to get the detail right. That is what we have been seeking to do.
Mary Robinson (Cheadle) (Con)
I am grateful to my right hon. Friend for his statement. Will he explain how, as the plans proceed, the economy of the north-west will benefit from the improved connectivity, particularly around the hub at Manchester airport? Will he tell us how that will improve the economy in the Greater Manchester area as well?
Chris Grayling
The hub around the airport is going to be particularly important, and it is very much on my mind as we develop phase 2b of HS2 and move towards the development of Northern Powerhouse Rail, where there must be a strong connection with the airport. The other benefit of the investment will be that it will create the space for more commuter services around Manchester. I know that there is significant congestion there—I have seen it in my hon. Friend’s constituency—and we need to provide better commuter services into Manchester, and indeed into Birmingham, Leeds and London. That is one of the things that HS2 will do, by taking the existing express trains off the existing routes.
Mr Dennis Skinner (Bolsover) (Lab)
Is the Secretary of State aware that if no changes are made to the proposals for HS2 as it goes through Derbyshire, 1,000 jobs will be lost at McArthurGlen, which is not far from South Normanton, and that more than 30 houses will be knocked down at Newton in my constituency? I have been working with the people at Newton in order to find alternatives, so will the Secretary of State meet the Newton people with a view to seeing whether there are any decent proposals for tunnelling, rather than knocking the houses down, and for ensuring that the jobs at McArthurGlen are safe? Will he give us that assurance today, so that I can make arrangements with the Newton people to come and take part in discussions?
Chris Grayling
As I have said all the way through, it is not possible to do something on this scale without having an adverse effect somewhere, but we will always do our best to minimise the impact. We are also always willing to have a dialogue with Members from across the House about such situations, so I will of course have that dialogue. I want to try to ensure that we do not adversely affect centres of major employment, so either the HS2 Minister or I will happily pursue a conversation with the hon. Gentleman.
Jeremy Lefroy (Stafford) (Con)
Stafford and Stoke-on-Trent currently have direct, high-speed services to Liverpool and Manchester respectively. However, the HS2 proposals mean that high-speed services from Stafford and Stoke will end at Macclesfield, so we will lose our direct connection with the northern powerhouse. That is unacceptable. Will the Secretary of State consider the situation again and see how its effects can be alleviated?
Chris Grayling
I am aware of the situation, and the important thing to say is that we are a long way away from detailed timetabling. I share my hon. Friend’s view about terminating at Macclesfield, and I have told HS2 Ltd to do some work on that. We have to get the timetabling and the flow of services right, and I do not want anywhere to be disadvantaged by the transition.
Graham Stringer (Blackley and Broughton) (Lab)
As a former chair of Manchester airport, I thank the Secretary of State for his kind words about how it has been run. One reason for the airport’s success is that it has been careful in choosing its private sector partners over the years. Will the Secretary of State therefore explain why he is allowing private companies that have not honoured their contractual obligations in franchises to compete for important lines?
Chris Grayling
There are two points to make when talking about potential long-term private partners. First, the arrangements at Manchester airport have worked well. It is still majority-owned by local authorities, but it actually operates as an independent business with private shareholders. It is a good example of a public-private partnership, which may well be the way forward for HS2 Ltd. That does not mean that the organisations that are running franchises are those that might end up as private partners in the future, because we are looking at a different type of model for the future. Secondly, as for future bidding, as I have said before, I will fulfil my legal obligations, but I will also be as careful as possible to protect the interests of the railways and of passengers.
Maria Caulfield (Lewes) (Con)
I welcome the announcement of the invitation to tender for HS2 and the benefits that HS2 will be bring the region. Will the new model be used when the Southern franchise is broken up and re-tendered? Is there a timescale for that?
Chris Grayling
The current Southern franchise will continue until 2021, and we are working through what the structure should be when it is re-let in a different form. I intend there to be a much closer alliance between Network Rail and the private sector, following a similar kind of model to that which we are using with Southeastern. It is necessary to bring the day-to-day operation of the track and trains together to improve performance. We have done some of that already on the Southern franchise, which has helped to make a difference, and that should continue.
Derek Twigg (Halton) (Lab)
When the Secretary of State talked about Labour spending, he seemed to forget the £8 billion invested in the west coast main line. When Labour took over back in 1997, the line was in a dreadful state, and it is so good today because of that Labour investment. The Secretary of State said several times during his statement that public satisfaction is high, that it is doing well and that it is well run, so what are his reasons for wanting to change it?
Chris Grayling
The hon. Gentleman asks, “What are the reasons for wanting to change it?”, but we are moving from one franchise to another; we are not looking to make massive changes to how the west coast main line currently operates. When it comes to 2026 and the arrival of HS2, that is a different situation. I am not talking about selling or privatising the infrastructure. Post-2026, we will have a separate network with its own infrastructure, and the question—it is not one for me, but for my successors—will be, “What is the best way of running that railway?” I have set out several strong options today, but the Government’s policy is that bringing together the operation of the track and trains—integration on the railway—is the best way of creating an efficient and effective railway.
Mike Kane (Wythenshawe and Sale East) (Lab)
We know that the Secretary of State is desperate to get from his home in Surrey to his seat at Old Trafford more quickly, so why are the Government dragging their feet when it comes to funding for the station at Manchester airport and the east-west alignment negotiations at Manchester Piccadilly station?
Chris Grayling
The biggest challenge in getting to Old Trafford on a match day are all the roadworks on the M60, which are due to our investment in the motorway network, and all the roadworks around Old Trafford, which are down to the support we are providing to Manchester to invest in the extension of the Metrolink.
The hon. Gentleman will be aware that Network Rail and Manchester City Council are in detailed discussions about Piccadilly, and we are close to moving forward with desperately needed improvements to the two platforms, and I want that to start soon. As for the airport, we need a really good hub station at the airport, and we are now working through how best to take the Transport for the North proposals for Northern Powerhouse Rail and create a deliverable programme. The first bit of that starts next year with the upgrade of the TransPennine route.
Bim Afolami (Hitchin and Harpenden) (Con)
Does the Secretary of State agree that working with private sector partners on the west coast main line has delivered huge improvements to reliability and customer service? Will he reassure my constituents that any operational changes that have been outlined or envisaged today will not have a negative impact on their service?
Chris Grayling
That is my goal. The thing is that I am very much in favour of the public sector and the private sector working together in partnership, and I have talked about that in other parts of the rail network. The difficulty is that the Opposition do not seem to want the “private” bit at all—everything has to be public. Both sectors bring strengths to the party, and the working partnership that exists today between Network Rail and Virgin Trains on the west coast main line has delivered significant performance and customer satisfaction improvements over the past few years.
Mary Creagh (Wakefield) (Lab)
Virgin-Stagecoach is not the first, not the second, but the third train company to walk away from the east coast franchise mid-contract, stating that it could only run it for a short number of months. I came running over to the Chamber today in eager anticipation of hearing the Secretary of State say that he was going to set up a directly operated rail company along the lines of the model we had in 2009, which delivered £1 billion back to the taxpayer over six short years. Will he tell the House what he is doing to get the east coast main line franchise back on track, delivering for passengers, staff and taxpayers? Will he ensure that no announcement is snuck out in the middle of the recess?
Chris Grayling
When we are ready to make an announcement about the future, I will come to the House to do so, and I have said that several times. We are ensuring that we get things right. As I have said before, we have been preparing the alternative operator of last resort for some months. When we are ready to take things forward, I will say so.
The hon. Lady compares the situation with what was there previously, and I simply remind her that, notwithstanding the financial problems in the franchise, it has a high level of passenger satisfaction and is running more trains, employing more people and delivering more money to the taxpayer. The problem is that there has been not enough success, not a lack of it.
Peter Kyle (Hove) (Lab)
In the previous Parliament, the Department was so focused on HS2 that it took its eye off the real challenge facing our country: getting people to and from work in the south-east of England. Will the Secretary of State guarantee that he will not make the same mistake again and that the Southern rail fiasco will never be repeated?
Chris Grayling
We are slightly in the hands of militant trade unions deciding whether they want to cause trouble, because the analysis of what went wrong showed it was almost entirely down to the action of the trade unions. However, I have also said on many occasions that the unions were not the only issue on that line, and I hope he accepts that performance has improved, but it needs to carry on improving. We need a broad-ranging programme of renewals, because there are still too many track and signal failures, which is why we have set aside the biggest block of funding—£20 billion—for renewals in the next control period. Some of that will flow to the hon. Gentleman’s line, but it will also go around the country to deal with similar issues elsewhere.
Rachel Reeves (Leeds West) (Lab)
Following the excellent question from my hon. Friend the Member for Wakefield (Mary Creagh), may I pick up on the issue of Virgin-Stagecoach and the east coast main line? In a matter of weeks or months the Government will have to make a decision for passengers in our constituencies in Yorkshire and elsewhere, so can the Secretary of State tell us when a decision will be made, whether there will be penalties for Virgin-Stagecoach for walking away from the contract, and whether he will keep on the table the very sensible option of bringing the line back into public ownership?
Chris Grayling
I have said clearly that I am not simply evaluating, but preparing for two options: one is an operator of last resort controlled by my Department, and the other is a not-for-profit direct award. I will make that decision shortly, and when I do I will come back to the House. It is not just about being ready to make a decision; it is also about knowing whether whichever option I choose is ready to happen. It is as much about preparation as it is about deciding. When we are ready to take that step, we will do so. The reason I am taking the time to get this right is that I do not want passengers—the hon. Lady’s constituents—to notice any change from one day to the next. They are the most important people in this.
Layla Moran (Oxford West and Abingdon) (LD)
We of course welcome any investment in rail, but HS2 must not be allowed to soak it all up. The Government have an incoherent approach to electrification, which has been indefinitely delayed in Oxford and abandoned on the lakes line and the midland main line. Meanwhile, the Government have been pulled up again on air pollution. Why do they not follow their own lead on cars and move away faster from polluting diesel engines?
Chris Grayling
A central part of our strategy on the roads is hybrid cars, and a central part of our strategy on the railways is hybrid trains. The biggest difference we can make in getting people off the roads and on to rail is to ensure that we expand capacity, and that is what we are doing, with longer trains, new and reopened routes and new stations across the country, creating a better environment for people who want to travel by rail. It is the biggest programme of investment in our railways since the steam age.
Mr Paul Sweeney (Glasgow North East) (Lab/Co-op)
The Secretary of State lauds the benefits of reduced journey times between London and Glasgow, but that is not the full picture, because we know that, as a result of the HS2 investment, journey times between Glasgow and Manchester will actually increase. How can this be benefiting all regions of the UK when journey times between Britain’s second and third biggest cities will be increased? Is it not yet another example of putting the profit motive over the real national interest?
Chris Grayling
This has nothing to do with the profit motive; it has to do with whether or not trains tilt. We need to ensure, through timetabling and planning after HS2 is opened, that we deliver the best possible outcome for all the services and all the destinations it serves. It is not a question of the profit motive or the private sector; it is a question of technical capabilities and how we deliver the best possible outcome.
Paula Sherriff (Dewsbury) (Lab)
Further to the question from my hon. Friend the Member for Wakefield (Mary Creagh), my constituency neighbour, can the Secretary of State confirm that Virgin-Stagecoach will be allowed to rebid for the east coast franchise when the contract is put out to tender, because that appears to be verging on the ridiculous?
Chris Grayling
I think that the hon. Lady has misunderstood our plans. From 2020 we are going to do things completely differently on the east coast main line; we will not be using the current bidding process. We are shaping a public-private partnership. It might be a public-private partnership that brings investment in digital rail, and it might have a completely different corporate structure. We are working through that longer -term plan now while preparing to put in place the intermediate arrangements. It is not a question of who will or will not be allowed to bid, because we have not even decided what the process will be.
Diana Johnson (Kingston upon Hull North) (Lab)
It is disappointing that the Secretary of State has today said nothing about the burning issue in the north: poor connectivity between east and west. I am sure that he shares my concern that there is no direct service between Hull and Liverpool, or between Hull and Manchester airport, and that from May trans-Pennine services running from Hull to Manchester will be slower. Will he agree to meet me and key stakeholders from Hull to discuss what he can do to improve connectivity in the north?
Chris Grayling
I and my ministerial team are always happy to meet to discuss services to the great city of Hull. The hon. Lady is not entirely accurate, because I did refer to the announcement I made a month ago about the start of the £2.9 billion investment in the trans-Pennine upgrade, which will start next spring.
Chris Evans (Islwyn) (Lab/Co-op)
The Minister will know that £1.2 billion was overspent on electrification between London Paddington and Swansea, and he knows that is not the only transport infrastructure project in relation to which the National Audit Office has found overspending. How confident is he that safeguards are in place for future infrastructure contracts for the east and west coast main lines, along with HS2, to prevent overspending that needlessly costs taxpayers millions?
Chris Grayling
It is always possible for technical problems to arise, as we are seeing in Bolton at the moment, but I think that lessons are being learned. Lessons are certainly being learned from the Great Western main line, which has not been run on an acceptable basis—it has been subject to reviews by the NAO, the Public Accounts Committee and the Transport Committee. I can assure the hon. Gentleman that Network Rail and my Department are seized of the need to ensure that that does not happen in future.
Rail Update
Lord Grayling Excerpts(6 years, 9 months ago)
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The Secretary of State for Transport (Chris Grayling)
I have today launched an invitation for investors who want to invest in rail infrastructure to bring forward proposals for the new southern rail link to Heathrow. In addition they are being invited to propose schemes around the country that could enhance and expand the rail network. Promoters and investors now have two months to start working up proposals which are financially credible without Government support.
This Government are already making the biggest investment in the railway since the Victorian era, delivering better journeys for passengers across the network. However, I want to go further by unlocking new private sector funding to invest in railway infrastructure across the country. This will be in addition to the Government’s significant commitment to invest £48 billion in railway infrastructure in the next funding period.
Governments do not have a monopoly on good ideas for the railways. I have been clear that I want the knowledge and expertise of investors and local partners to contribute to delivering new connections, more services and better journeys for passengers.
This approach has already proved effective on a number of roads schemes in the UK. By encouraging innovative ideas and new investment on our railways, we can relieve the burden on taxpayers and fare payers with schemes that match our transport needs, support our economic and housing aspirations and ensure everyone benefits from an enhanced rail network.
Heathrow is a perfect example of how this approach can make a real difference. The Department is continuing to work on a western rail link to Heathrow. The proposed southern rail link to Heathrow is an exciting opportunity to harness new and innovative ideas from the private sector and there are already a number of consortia looking to construct it. I am certain that there are other opportunities nationwide for third parties to work with the Government to improve the railway.
I have published my guidance for market-led proposals to provide clarity on what Government are looking for from these ideas and the process by which it will consider them. I have also published the “Rail Network Enhancements Pipeline”.
When I published my high level output specification and statement of funds available for the railway in England and Wales for the next investment period, I made clear that the Government were developing a new process for rail enhancements—the “Rail Network Enhancements Pipeline” provides this. This is designed to ensure that future rail projects are planned and scrutinised to deliver maximum value and benefit to rail users and taxpayers.
Taken together this provides a clear framework for how we will improve the way we enhance our railway.
The changes I have outlined today lay the foundations for improving rail access to Heathrow. They also set in motion ambitious proposals on new rail schemes that could deliver significant improvements for passengers across the network and to maintain the record levels of investment this Government are delivering in our railways.
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HS2 Update
Lord Grayling Excerpts(6 years, 10 months ago)
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The Secretary of State for Transport (Chris Grayling)
I am pleased to inform the House that we have published our consultation response on taking forward the vision of a Crewe hub.
This response signals how our plans will support that vision and allow for the introduction of an additional HS2 service to Stoke-on-Trent.
To enable this, we will amend our plans for HS2 Phase 2A, from Birmingham to Crewe. This includes 400 metre platforms at Crewe, which allow longer HS2 trains to split and join, opening up opportunities to serve more destinations including Stoke-on-Trent and enabling more people to access high-speed, long-distance services.
We also intend to ask the franchise operator, West Coast Partnership, to include a high-speed service to Stoke- on-Trent in its market development and service plans.
A Crewe hub could generate significant opportunities— not only for Crewe, but also for the surrounding region. To fully realise that vision will need central and local government to work together and require future decisions to be taken as part of Phase 2B.
We welcome the progress being made by Cheshire East Council and the local enterprise partnership in identifying how they could invest in the scheme to ensure the benefits are fully realised.
The steps we are taking today will ensure Crewe and Stoke-on-Trent can benefit fully from HS2 and build on the earlier decision to bring the benefits of HS2 to Crewe from 2027, six years earlier than originally planned.
HS2 will become the new backbone of our national rail network. It will increase capacity on our busy railways and improve connections between our biggest cities and regions. It will support our industrial strategy, generating jobs, skills and economic growth to help build an economy that works for all.
[HCWS534]
Oral Answers to Questions
Lord Grayling Excerpts(6 years, 10 months ago)
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Paula Sherriff (Dewsbury) (Lab)
The Secretary of State for Transport (Chris Grayling)
We do not allocate transport funding on a per head of population basis; our decisions are based on a rigorous and fair appraisal process that ensures that spending goes where it is most needed and where it delivers the greatest value for money. Recent analysis by the Infrastructure and Projects Authority shows that planned central Government transport investment over the next four years is evenly balanced, with £1,039 per head of population in the north, compared with £1,029 in the south.
Paula Sherriff
May I first take this opportunity to thank all those involved in keeping our transport systems going in this inclement weather? I am sure that fellow Yorkshire MPs will have shared my surprise at the Secretary of State’s recent article in The Yorkshire Post, in which he claimed that spending in the north was somehow greater than that in the south—if, through a rather imaginative calculation, we ignore London. Does he agree that simply spinning figures will not fix our archaic northern railway systems or get northern commuters to work on time?
Chris Grayling
I echo the hon. Lady’s comments about those who are working hard to keep the transport system open today; we are very grateful to them all. In a week when the Labour party has already had issues with its use of statistics, she should look up the official statistics from the independent Infrastructure and Projects Authority, which show that planned central Government spending is higher in the north than it is in the south.
Mr Philip Hollobone (Kettering) (Con)
I am sure that we could spend more Government money on transport in the east midlands, particularly in Northamptonshire, and especially in Kettering. The new franchise for the midland main line is currently being negotiated. Will the Secretary of State ensure that Kettering’s rail services are better after the franchise is awarded than they are now?
Chris Grayling
My hon. Friend, who is a strong champion of Kettering, will be delighted to know that the expansion in capacity to Corby means that there will be a much better commuter service in the mornings and evenings through Corby down to Kettering, and to Wellingborough and beyond. That is one of the benefits of the biggest investment in the midland main line since the 1870s.
Mr Clive Betts (Sheffield South East) (Lab)
Just to give the Secretary of State an example of unequal treatment, is it true that for the new east midlands rail franchise in 2020 the current HST—high-speed trains—carriages will be scrapped, because they are disability non-compliant, and the power cars will then be matched with second-hand, cast-off carriages from the east coast main line? Instead of the brand new, hybrid hydrogen trains that we were promised, we will be getting hybrid trains composed of 30-year-old power cars and 30-year-old discarded carriages from another line.
Chris Grayling
I do not know what stories the Labour party has been listening to. The midland main line will have brand new, bi-mode trains delivered as soon as possible—
Chris Grayling
In the early 2020s, which is years ahead of what would otherwise have been the case under the original scheme.
Mr Iain Duncan Smith (Chingford and Woodford Green) (Con)
Within the context of equity of spending, I wonder whether, after this snow event is over, my right hon. Friend will ask some serious questions about, or even have a review of, why we still seem to be in no way prepared for such events. For example, I discovered yesterday that Heathrow is busy offloading flights because it cannot cope, whereas—[Interruption.]
Mr Duncan Smith
Yes, regional flights. What I am saying is that, given all of that, airports such as Gatwick and others are able to cope. Does my right hon. Friend not think that it is ridiculous that some airports are simply unable to cope while others across the UK can?
Chris Grayling
I know that a number of Members are here today because their flights to regional airports have not been able to take off. I hope and expect that we will be able to sort that out as quickly as possible today, although it is really important that the transport system is run safely. Of course, one of the benefits of the expansion of Heathrow is that the airport would become more resilient to such difficult situations, and connections to regional airports would be more reliable.
Alan Brown (Kilmarnock and Loudoun) (SNP)
I, too, pay tribute to those transport workers who are keeping the system going at this difficult time. The Secretary of State said in his first answer that the allocation of funding is a rigorous and fair process, so can he explain why the Government have ignored the Office of Rail Regulation’s recommendations by underfunding Scotland by £600 million? Since then his Department has been able to cope with a £240 million loss of revenue as a result of the situation with Southern rail and found £245 million for High Speed 2. The Government have been ignoring the Scottish Government since last July, so will they now meet the Scottish Government, or are these just weasel words about equity of funding?
Chris Grayling
Once again, the Scottish National party is arguing against the use of the Barnett formula. SNP Members love the Barnett formula when they think it is advantageous to them, but when they do not like the Barnett formula, they want to get rid of it. I simply say to them that this Government have followed the principles of the Barnett formula, and actually the Treasury has given Scotland a bit more money above that. I wish the SNP would stop complaining. The reality is that Scotland is now better represented, with a group of Conservative MPs who are much more effective than the SNP ever was in getting this Government to do that bit extra for Scotland.
Mr Ranil Jayawardena (North East Hampshire) (Con)
Imran Hussain (Bradford East) (Lab)
The Secretary of State for Transport (Chris Grayling)
I am not sure I see any merit in the early termination of the Virgin Trains East Coast franchise. That is not something I would wish to happen, but we have to deal with the world as it is, rather than as how we would like it to be.
My priority is to ensure the continued smooth running of the east coast franchise for its passengers and employees, and to make sure that the trains run and deliver the service that people need. As I told the House on 5 February 2018, a new arrangement to operate the railway prior to the new east coast partnership in 2020 needs to be put in place. We are currently conducting a full appraisal of the options, and I will return to the House in due course.
Ian Mearns
I am afraid to say that service standards have deteriorated on the east coast line since Virgin-Stagecoach took the franchise—I am a regular customer on that line—despite the best efforts of the excellent staff on board trains and at stations. Those staff face having their sixth employer in a decade and a half. Will the Secretary of State meet me and some of those staff, so that they can express their concerns about the way in which the franchise has been conducted? Will he give the House an undertaking that there is a genuine public sector operator ready to take over should that be required—or has Directly Operated Railways been outsourced already?
Chris Grayling
On the last point, I can give an absolute guarantee that that is the case; we have been making preparations for different eventualities for some time and there is a genuine alternative, if that is deemed to be best for the passenger and best value for the taxpayer. My ministerial colleagues and I are happy to talk to staff, but I would correct the hon. Gentleman on one point: the reality is that the independent assessments have shown a higher level of passenger satisfaction on that route since the change of franchise, not a lower one.
Karen Lee
I, too, wish to say a huge thank you to the staff who have been involved in keeping the trains running. As has been said, the current Virgin Trains east coast line franchise agreement will end three years early, making it the third franchise failure in about a decade. As someone who uses the line, I do not agree with the Secretary of State’s assessment of it. But will he recognise that there is a problem and see this as the perfect opportunity to bring the contracts back in house?
Chris Grayling
As I have said in this House before, I need to do what is best for passengers and for the taxpayer. The reality is that since the transition, regardless of the fact that Stagecoach clearly got its numbers wrong, passenger satisfaction has risen, more people are being employed by this railway and it is delivering more money to the taxpayer. [Interruption.] That is the reality. Labour Members can say it is not true, but it is; it is a fact that they just have to deal with.
Liz Twist
I assure the Secretary of State that after three failed franchises and the experiences of a directly operated railway my constituents would much prefer a directly operated railway. Will he commit to providing a directly operated railway service, in the public interest?
Chris Grayling
As I have said, I am going to do what is best for the passenger and for the taxpayer. I am sorry that the Labour party does not seem to get this, but the reality is that passenger satisfaction levels are higher today than they were three years ago—that is what the independent research shows. Labour Members may not like it, but it is true.
Imran Hussain
Next year, Bradford would have seen a marked increase in the number of much-needed direct inter-city trains serving the city, but the chaos with the east coast line has put that in serious doubt. These extra trains are vital to improving Bradford’s connection to the rest of the country, so will the Minister commit to ensuring that, whatever happens to the east coast franchise, Bradford will see an increase in the number of direct trains?
Chris Grayling
This is an important point, so let us be clear: it is my intention that, whatever arrangements are put in place for the next few years, the service improvements that have been promised will be delivered. We face an issue on infrastructure and additional capacities on the northern part of the route, which will have to be resolved and may mean some amendments to the timetable for new services, but that will not stop us delivering those new services. In Bradford’s case, I am expecting to be able to fulfil the commitments that were made.
Martin Vickers (Cleethorpes) (Con)
I agree with my right hon. Friend that there are no merits in the early termination of the franchise, but there are opportunities from the new partnership. My constituency has 10 railway stations, none of which have a direct rail service to London. Does he agree that this is an opportunity to look at providing services to those towns not currently served?
Chris Grayling
As I know, my hon. Friend has been a regular advocate for direct services, and I would like to see those happen. I am looking to see whether we can maximise the capacity on the east coast main line to make additional services possible. Of course the arrival of HS2 will allow many services that cannot be run now because of capacity constraints to happen, because of the additional capacity it will create on routes to the north and Scotland.
Jeremy Quin
I am absolutely going to. In respect of the proposed alternatives to the current east coast franchise, has the Secretary of State seen President Macron’s recent remarks about the nationalised French railways, and has he any remarks to make on them?
Chris Grayling
Wisdom sometimes comes from our allies across the channel. I did see those remarks, and they are a timely reminder that a nationalised railway is not the panacea that some believe it is.
Mr Speaker
It was not the Horsham perspective, but the international perspective. Why would I expect anything less from someone so illustrious as a man who served as my constituency chairman for three years, for which he deserved a medal?
Alan Brown (Kilmarnock and Loudoun) (SNP)
The Secretary of State says that Stagecoach got its sums wrong, but clearly his Department got its sums wrong, too, when it awarded the franchise to Stagecoach. Surely one merit of this situation should be that failing franchise holders should not be allowed to bid for future franchises. Does the Secretary of State agree that this gives us the opportunity to put the franchise into the public sector, allow further public sector involvement across all franchises, and review and improve the franchise tender process?
Chris Grayling
We certainly keep the franchise process under continual review to work to improve it but, as I said a moment ago, a public railway is not the panacea that everyone on the Opposition Benches claims it is. I intend to do two things: to take the right decisions for the taxpayer and the travelling public on that route, which is really important, and to act within the law, which is also important.
Andy McDonald (Middlesbrough) (Lab)
On Monday, the chief executive of Stagecoach said that he knew there was a problem with the east coast franchise’s finances just weeks after taking over the contract in March 2015, and that he had been talking to the Department about it for two years. Given that the Department was in dialogue with the operator about the difficulties, why did the Secretary of State not put together a contingency plan for the route? The Secretary of State has had two years to sort out this mess; is it not simply incredible that he still does not know what to do?
Chris Grayling
The shadow Secretary of State clearly cannot do his sums, because I have not been Secretary of State for two years. We have been planning—
Chris Grayling
I have been Secretary of State for 18 months; the shadow Secretary of State cannot do his sums. Since I became aware that there was a problem on the east coast route, we have been doing careful contingency planning, so we have a long-term plan and short-term options for the route. We cannot put those short-term options into place until the appropriate moment arises at which they are necessary. We are prepared for when that moment arises and will deliver the alternatives.
Andy McDonald
Given that the taxpayer has already lost out on more than £2 billion of premium payments, can the Secretary of State advise the House as to whether the financial ramifications of the termination of the franchise are now completely known and concluded? If not, what sums of money are earmarked to settle any further system-gaming demands from Messrs Branson and Souter through litigation or arbitration?
Chris Grayling
Again, the Labour party cannot do its sums. We have no more written off £2 billion than Labour wrote off £1.4 billion when National Express collapsed. The reality is that the east coast is and always has been in recent times a profitable railway. Whatever happens, it will continue to generate a substantial return for the taxpayer. It is about time that Labour did its sums properly, rather than misrepresenting the reality.
Jack Brereton (Stoke-on-Trent South) (Con)
Damian Green (Ashford) (Con)
The Secretary of State for Transport (Chris Grayling)
As my right hon. Friend knows, I have asked Highways England to progress plans to promote a lorry holding area through the normal planning process as a potential permanent solution to Operation Stack. Highways England intends to undertake an initial public consultation on this in the spring, which will consider the scope, scale and function of the lorry area. As he knows, I am frustrated that we have not been able to do this sooner, but the commitment to it is strong.
Damian Green
The Secretary of State is, I know, aware of the extreme urgency of finding a solution to this matter. Even if we assume a full implementation period after Brexit, we could be less than two years away from new customs arrangements at Dover, and problems there could be disastrous not just for roads across Kent, but for the national road haulage industry. Can he assure us that, by the time of Brexit, sufficient off-road parking spaces will be available to avoid a recurrence of Operation Stack?
Chris Grayling
There are two points that I should make. First, on the border, it is absolutely the intent of this Government to maintain a free-flowing border; that is of paramount importance. The other point, be absolutely clear, is that we will have a solution in place for next March which keeps the M20 flowing in both directions and provides a solution if there is congestion at the ports; and that we intend to move beyond that and deliver a long-term solution, which will not only deal with the issue of trouble at the ports, but provide some respite to Kent residents, who I know are fed up with having lorries simply parking on their local roads.
Stephen Timms (East Ham) (Lab)
Eighty per cent. of the road freight to and from the UK goes through Dover. There is surely no realistic chance of all those lorries being checked from March next year. Is not the reality that, if we leave the EU without a deal, utter chaos on the road network within miles of Dover is completely unavoidable?
Chris Grayling
No, I do not think that at all. It is for this country to decide how we manage our borders and what checks we put in place. The Government are absolutely committed to ensuring that there is a free-flowing border at Dover, and we will deliver that.
Patrick Grady (Glasgow North) (SNP)
Is it the Department’s policy that a new fixed link across the channel would help to ease disruption?
Chris Grayling
We should have some big, bold visions for the future. That is the way that we plan properly in transport terms. Our big, bold visions for the country right now are HS2, the potential expansion of Heathrow airport, the lower Thames crossing, the trans-Pennine tunnel, the A303 dualling and the Stonehenge tunnel. This Government have and are delivering lots of big visions for Britain.
Karl Turner (Kingston upon Hull East) (Lab)
The chairman of Maritime UK has said that, if a deal is not reached on Brexit, lorry drivers could be stuck on the main roads to Dover for up to two days. Even if a deal is reached, with a hard border at vital ferry ports, the industry is warning that customs and port health checks will cause massive disruptions. What concrete assurances can the Secretary of State give us that that will not be the case?
Chris Grayling
As I have said before, I have regular dialogue with the haulage industry and the ports sector. I have been very clear to them, as I am being clear in this House today and as the Prime Minister has made clear, that we do not intend to impose a fixed border. We want a free-flowing border and that is what we will deliver.
Clive Efford (Eltham) (Lab)
The Secretary of State for Transport (Chris Grayling)
All franchise operators are required to obtain a pre-qualification passport. The Department may suspend or withdraw a passport in the event that the passport holder triggers certain requirements within the passport application. This would place restrictions on or remove the passport holder from bidding for franchise competitions.
Clive Efford
I take it from that answer that it is possible for the Secretary of State to deny an existing franchise holder the right to rebid in a new tendering process. Govia, which has had the south eastern franchise for a long time, has consistently been a poor performer, so can he remove Govia from the service? If it were to get the franchise, what guarantees can he give to my constituents that they will get the improved service that they deserve?
Chris Grayling
In the case of the south eastern franchise, we will accept the bid that is going to deliver the best possible outcome for the hon. Gentleman’s constituents, with longer trains and better services. This is a competitive process. I will not hesitate to remove a passport from a firm when that is required. I also have to operate within European procurement law—something that the Labour party is still very keen on—and that requires me to take a proportionate approach. I will always seek to do that and I will always seek to operate within the law.
Tim Loughton (East Worthing and Shoreham) (Con)
Last year, no fewer than 67 million rail journeys were cancelled or severely curtailed. I raised this matter with the Prime Minister yesterday. Most of the compensation paid by Network Rail was trousered by the train operating companies. When they bid to renew their franchises, will the way in which they have treated their passengers with compensation be a key consideration, as it should be?
Chris Grayling
My hon. Friend is absolutely right that we need to ensure that passengers get the compensation payments to which they are entitled. Of course, the compensation structure is much more complex and there are far more issues than those that have been highlighted in the media in recent days. I am very clear that the move that we are going through this year to provide digital ticketing across the whole network will make it much more straightforward to give passengers the compensation that they deserve and need, and enable them to do so simply, without having to fill out long, complicated forms.
Rachael Maskell (York Central) (Lab/Co-op)
The estimates report was very revealing, showing how hundreds of millions of pounds have been spent on compensation, underwriting failure and bail-outs. In control period 4 alone, a staggering £339.4 million of public money—our constituents’ money—was handed over to private operators, while passengers were forced to pay over the odds to travel. How much more public money will the Secretary of State pass to these failed rail operators?
Chris Grayling
The Opposition keep talking about the huge amounts that are paid, but they fail to understand that less than £3 in every £100 that is spent on the railways remains with the companies. The rest is going into the biggest infrastructure investment programme, better services and newer trains—the kind of improvements that people could only dream of in 13 years of Labour Government, but which they are getting under a Conservative Government.
Rachael Maskell
That is certainly no apology to our constituents. The Secretary of State’s lack of due diligence has caused chief exec David Brown, of embattled Southern rail fame, to announce that he has done a—expletive deleted—good job, and that he will bid again for the next franchise contracts. Virgin and Stagecoach will do the same. These companies are on a huge gravy train at the expense of taxpayers, so why is the Secretary of State being held to ransom and why he is even prepared to consider rewarding their failure?
Chris Grayling
The hon. Lady talks about a privatised gravy train. I would encourage her to look at the conversation that the French Prime Minister had about a state railway, where he said:
“The dilapidated network, delays, abysmal debt…The situation is alarming, not to say untenable. The French, whether they take the train or not, pay more and more for a public service that works less and less well”.
I would say to her constituents that I am delighted that over the next 12 to 18 months the people of York are going to see every single train, pretty much, that serves their station replaced as new, or brand new trains—trains that they have not seen for decades.
Luke Graham (Ochil and South Perthshire) (Con)
During the franchise process, business cases get a lot of focus. The hon. Member for Middlesbrough (Andy McDonald) mentioned the Virgin Trains east coast contract and the franchise holder criticising some of the figures he had been passed. As a member of the Public Accounts Committee who was present at that hearing, I can say that the franchise holder actually said that, although the figures were not what he was expecting, they were not an insurmountable barrier to the franchise working. He quoted the Scottish referendum and Brexit, and a declining trend in passenger figures, as the real reason why the franchise failed. When franchises across the companies are being bid for, will my right hon. Friend encourage those companies to have a broader range of dynamic scenario planning so that they get accurate figures?
Chris Grayling
My hon. Friend makes a very important point. We are now migrating the franchise system to being much more focused on quality. The quality of service is going to drive revenues as much as anything else. People will see a very different approach where we do not necessarily take the highest bid, we look for high quality in the bids, and we look to be prudent about the risk-sharing mechanisms so that hopefully this does not happen again.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
Sir Henry Bellingham (North West Norfolk) (Con)
The Secretary of State for Transport (Chris Grayling)
Briefly, let me inform the House that the Space Bill has completed its passage through Parliament, and I extend my thanks to all Members involved in the debate. That debate was conducted in good humour by Members from across the House, and we all share the aspiration for this Bill to pave the way for a thriving commercial space sector in the United Kingdom.
Sir Henry Bellingham
Is the Secretary of State aware that Network Rail and Govia Thameslink have committed to ensuring that eight-carriage trains are introduced between Cambridge and King’s Lynn by the end of the year, which is vital to relieving unacceptable levels of congestion? Will he help to ensure that that commitment is honoured?
Chris Grayling
I will certainly do that, and I also recommit to the improvements needed in Ely, which are essential over the next control period to unlocking those capacity improvements that are needed for the growth and development of those parts of Cambridgeshire.
Dr Rupa Huq (Ealing Central and Acton) (Lab)
Jeremy Quin (Horsham) (Con)
Chris Grayling
Let me say very clearly and unequivocally that what took place last Sunday was unacceptable. On behalf of the Government, I apologise for it and the company has already done so. We have made our views known to the company in the strongest possible terms. It was unacceptable and lessons have to be learned. The company is putting in place arrangements to make sure people receive appropriate financial compensation. It must not happen again.
Siobhain McDonagh (Mitcham and Morden) (Lab)
Jack Brereton (Stoke-on-Trent South) (Con)
Chris Grayling
First, I want to put on the record again my commitment to making sure that Stoke is in receipt of an HS2 service when the route opens. The local authority’s plans for Stoke station are very exciting and I want to work on them with my hon. Friend and the local authority.
Tony Lloyd (Rochdale) (Lab)
Chris Grayling
I know that these works have taken longer than intended. I have spoken to Highways England and we want to get this situation resolved as quickly as possible. It is certainly the case—I speak as somebody who travels from time to time to Old Trafford—that the area is surrounded by roadworks on the motorway and the work on the new extension to the Metrolink. I hope the hon. Gentleman will acknowledge, however, that this is a sign that the Government are making sure there is investment in, and resource provided to, Manchester, where transport investment on this scale has not happened for a long time.
Johnny Mercer (Plymouth, Moor View) (Con)
My right hon. Friend will know from our many previous conversations that the people of Plymouth have waited too long to see improvements on their rail link, so I am grateful for his Department’s response yesterday, but when can they expect to see something delivered—some work completed—on Dawlish, which I know is his No. 1 responsibility?
Peter Kyle (Hove) (Lab)
Thank you so much, Mr Speaker. There is one set of tracks and one franchise operator between London and Brighton, but there are three separate pricing structures. I urge the Secretary of State and the Rail Minister to think about implementing the Gibb recommendation to lower the pricing to the lowest possible one—the Thameslink one—for a two-year period. That could be done with no technical changes whatever, and it would have a transformative impact on passengers who have suffered so much in the last few years.
Chris Grayling
We are working our way through the recommendations of the Gibb report, and we are working our way through the automation of ticketing, which I think is a prerequisite of the broader fares reform that is necessary. The hon. Gentleman will be aware that the keyGo card has just launched across the Govia Thameslink Railway network, and that smart ticketing is progressing. That will provide the opportunity for fares reform in a way that has not been there previously.
Rachel Maclean (Redditch) (Con)
During the recent appalling weather, Worcestershire County Council has been sharing information about where the nearest grit bin can be found, and getting the gritters out on the road. Will the Secretary of State join me in praising them for helping residents to prepare for the recent appalling conditions?
Ian C. Lucas (Wrexham) (Lab)
The Secretary of State will be aware that no money was spent in control period 5 on supporting enhancements to the rail infrastructure in north Wales. Having seen the unanimity in north Wales and in north-west England on Monday this week, does he not accept that our time has come for cross-border rail investment?
Chris Grayling
As the hon. Gentleman knows, I went to that event and made a commitment. I praise my right hon. Friend the Member for Clwyd West (Mr Jones) for bringing the event together and thank all the Members from north Wales who attended. I gave a clear indication of the Government’s sympathy with the need for the Crewe hub. I talked about the re-signalling on parts of the route, which will improve performance on the line. The hon. Gentleman will be aware, as the Member of Parliament for Wrexham, that we are now carrying out the study on how we deliver a proper service on the Wrexham to Bidston line. Under this Government, the time has certainly come for transport improvements.
Peter Aldous (Waveney) (Con)
BACT—Beccles and Bungay area community transport—plays a key strategic role in north Suffolk in serving remote rural areas and many vulnerable people. Will the Minister assure me that in assessing the feedback from his current consultation, his No. 1 objective will be to put the future of organisations such as BACT on a sustainable, long-term financial footing?
Chris Grayling
The A40 is one of the roads that could benefit from the creation of the major roads network. It is precisely designed to deal with those second-tier roads that were detrunked by the last Labour Government and tend to fall through the cracks between decision making in local communities and the national work done on the strategic road network. My expectation is that my hon. Friend and his local authority will be beating a path to my door when that funding is first released. However, I would say that his railway line is getting new trains much sooner than that, which I hope will be a benefit to his constituents.
Bill Esterson (Sefton Central) (Lab)
Ministers say that they want to reduce roadside emissions. The road leading from the port of Liverpool has some of the biggest air quality problems in the country. Will the Secretary of State listen to calls for investment in rail freight as an answer to the problem?
Chris Grayling
This is precisely why I am so pleased to have started feasibility work on the reopening of the Skipton to Colne railway line, a route that could provide an important link across the Pennines. It is no doubt a matter of real frustration that it takes eight to nine hours for a freight train to travel from the port of Liverpool to the power station at Drax, and it is clear to me that we need additional transpennine capacity. This is one route that could deliver it. I look forward to seeing the conclusions from that study at the end of the year, which I think is the likely timetable.
Robert Neill (Bromley and Chislehurst) (Con)
This week of all weeks, rail passengers want up-to-date information about delays and cancellations, but Southeastern’s website has failed to provide any live-time updates in any single rush hour this week, today included. Will Ministers bear that in mind when the franchise comes up for renewal?
Mrs Emma Lewell-Buck (South Shields) (Lab)
My constituent Jim Irvine, who was active all his life, now suffers from motor neurone disease, and, like many other people, relies on his mobility scooter for independence. Scooters are currently banned from the Tyne and Wear metro. What will the Secretary of State do to remedy the situation, and will he give assurances that our promised new rolling stock will include provision for mobility scooters?
Chris Grayling
As the hon. Lady says, it is time that we had new rolling stock on the Newcastle-upon-Tyne metro. I expect to see updated, modern rolling stock that can provide proper accessibility for people with disabilities. The decision about the configuration will of course be made locally, but I certainly expect the money that is available to be spent on disability-compliant rolling stock.
Jeremy Lefroy (Stafford) (Con)
Will my right hon. Friend give us an update on the progress of the negotiations on air connections with the European Union after we leave in March next year?
Chris Grayling
The European Commission has published its negotiating position on aviation links. There have been a lot of scare stories around over the last few months, but the Commission has said that in all circumstances—whether or not we have a trade deal, and whether or not we have an implementation period—there must be an aviation agreement. There is a recognition on the Commission’s side that the flights need to continue, and there is an absolute commitment on our side. I met my Spanish counterpart yesterday, and we agreed that it was essential for flights to continue. We will all work to ensure that there is absolutely no interruption in services.
Luke Pollard (Plymouth, Sutton and Devonport) (Lab/Co-op)
Does the Secretary of State understand the severe disappointment and anger in the far south-west about the sham of a south-west rail strategy that was published yesterday? Will he now do the right thing, and, instead of re-spinning the £50 million that has already been announced, match Labour’s £2.5 billion rail investment plan for the south-west?
Chris Grayling
I will take no lessons from the party that did nothing for transport in the south-west over a long period. This Government are doing things that Labour never did—dualling the A303, providing brand-new trains, and resignalling in Cornwall to increase the number of rail services. The hon. Gentleman should be embarrassed about his party’s record.
Several hon. Members rose—
Rail Update
Lord Grayling Excerpts(6 years, 11 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Secretary of State for Transport (Chris Grayling)
With your consent, Mr Speaker, I will make a statement on rail franchising. I apologise to the two Opposition Front-Bench spokespeople for the slightly late delivery of copies of the statement—the speed with which we took this afternoon’s urgent questions caught us all a bit by surprise.
I informed the House on 10 January that my Department was preparing contingency plans for running train services on the east coast main line in the event of the existing franchise failing. Despite delivering significant returns to the taxpayer and having some of the highest passenger satisfaction scores in the country, the lead operator of the franchise, Stagecoach, has been incurring significant losses. During that debate, I promised to return to the House to provide an update on the situation, and I am doing so today.
Since 2015, the franchise has met all its financial commitments to the taxpayer, returning nearly £1 billion to the public purse, but that has come at a substantial cost of nearly £200 million to Stagecoach. I have already informed the House that the franchise will, in due course, run out of money and will not last until 2020, but it has now been confirmed that the situation is much more urgent. It is now clear that the franchise will be able to continue in its current form for only a very small number of months and no more.
Last week, following detailed analysis, my Department issued the franchisee with notification that the franchise has breached a key financial covenant. It is important to make it clear to the House, and indeed to the public, that that will not affect the railway’s day-to-day operations. The business will continue to operate as usual, with no impact on services or staff on the east coast, but it does mean that in the very near future, I need to put in place a successor arrangement for operating the railway and to end the current contract.
Given the imminent financial pressure that the existing franchise is under, I am taking action now to protect passengers who depend on these train services and to ensure continued value for taxpayers’ money. Given the urgency of the situation, I would like to take this opportunity to update the House on my plans.
It is worth remembering that our franchising system, as a whole, has delivered great benefits to passengers. New private investment has totalled £6.4 billion over the past 11 years, passenger journeys on the rail network have more than doubled and the private sector is paying for new trains all around the country. There are those who want that to stop, because of a dogma that the state could run the railway better, but we see the fruits of private investment all around the network.
There has also been much misinformation about the franchise, so it is worth stressing again at the outset that, because payments to the Government have been subsidised by Stagecoach, the taxpayer has continued to profit financially from this franchise. Passenger satisfaction is high, and preparations are well under way to deliver state-of-the-art new trains on this railway.
The problem is very straightforward: Stagecoach got its numbers wrong. It overbid and it is now paying the price. Contrary to widespread speculation and rumour, no deal has been done on this railway, and I have not yet made a decision on the successor operator to run the east coast railway until the longer-term plans for the integration of track and train can begin in 2020. There is no question of anyone receiving a bail-out. Stagecoach will be held to all its contractual obligations in full. But, as the Brown review said five years ago, this is what we expect in a competitive franchise system: private businesses risk substantial amounts of their own capital, and if they fail to live up to their stretching targets, they lose out, not the taxpayer. For anyone who thinks that the nearly £200 million that Stagecoach will lose is insignificant, let me put it into context: the combined profit of every train operator in the country was only £271 million last year, and the loss equates to more than 20% of Stagecoach’s total market value. So this is a significant amount of money by any measure, and it should also act as a stark warning to any company tempted to overbid in future. Moreover, the franchising system has now been adjusted to deter further optimism when bidding.
The priority now is to ensure the continued smooth running of the east coast franchise for its passengers. I have therefore asked my officials to conduct a full appraisal of the options available to the Government to ensure continuity of service until we implement the east coast partnership on the route from 2020. My decision on which option to choose will be made in accordance with the key principles set out in the statement on how I use my rail franchising powers. These include: protecting the interests of passengers; preserving the interests of taxpayers by ensuring value for money; and supporting investment and improvement in the railway, including through the deployment of new inter-city express trains on the east coast line.
In order to inform this decision, the Department will assess the extent to which each option performs against those principles. Our value-for-money assessment will be based on a number of criteria, including which option returns most money to the taxpayer, the risks attached to each, and the value of any improvements in passenger services. I will also have regard to the effect of my decision on other franchises. The decision will be taken in a transparent way; the Department’s assessment of the option will be published and it will be properly validated.
At this stage, one of the options is to consider the possibility of Stagecoach continuing to operate services on the east coast line under a very strictly designed short-term arrangement. The current management has a strong record of customer service and to rule out its involvement now would go against the principles I have outlined. However, given the circumstances in which the Government are having to step in to protect passengers on this line, I am prepared to consider that option only on the basis that the franchise would be operated on a short-term, not-for-profit basis. The only acceptable financial reward for Stagecoach could be received at the end of the contract—and only in return for the delivery of clearly specified passenger benefits and improvements. The company cannot be allowed to continue to run this franchise and simply make a profit, given what has happened. It got its sums wrong, and it will pay the price for that, not the taxpayer.
The second alternative is for the east coast franchise to be directly operated by the Department for Transport through an operator of last resort. My Department will subject that option to the same rigorous assessment to establish whether it would deliver value for money for taxpayers and protect the interests of passengers. This option is very much on the table and will be selected if the assessment that I have set out determines that it offers a better deal for passengers and taxpayers than the alternative.
In either scenario, the east coast main line is expected to deliver substantial revenue to the taxpayer. The line will also continue to deliver premium payments to the Government once the east coast partnership is in place in 2020. So let me be clear that the east coast franchise will continue to offer and deliver a healthy operating profit for taxpayers. It has done so over the course of this franchise so far and it will do so in future.
There will be those who claim that because Stagecoach overbid, it should be excluded from bidding for future franchises. I have to be clear that the legal advice on this is clear. As the company is meeting its financial obligations to support the franchise, including with the full parent company’s support, and because it has operated services on the east coast line successfully, the Department has concluded that there are no adequate legal grounds to restrict it from bidding on current and future franchise competitions on this basis. Members will understand that it is my duty to follow legal advice, but let me be clear that we will keep its eligibility for current and future bids under close scrutiny and constant review.
It is vital that we continue to focus our attention on delivering benefits for passengers across the network and on securing the genuine benefits of privatisation, so in addition to the transparent, rigorous process for the east coast line that I have set out, I am making some additional franchising announcements that will deliver benefits to passengers on the west coast and east midlands routes. In December 2016, we set out our plans to award the west coast partnership—the franchise that will deliver the first High Speed 2 passenger services. In that announcement, we made clear our intention to agree a short direct award with the current incumbent to allow the time necessary to design the west coast partnership. The negotiations have been completed and we have agreed a direct award with the existing operator, Virgin Trains west coast.
Let me be absolutely clear that the east coast and west coast franchises should not be confused. As with the east coast franchise, the west coast operator is meeting all its financial obligations, but the west coast franchise has a completely different corporate structure, in which Virgin Trains is the majority shareholder. As was set out 14 months ago, the direct award is a sensible bridge between the existing contract and the west coast partnership. Once that partnership is ready, the direct award will cease to exist.
Virgin has transformed the west coast franchise from a poorly performing service that required a subsidy of more than £75 million a year into a franchise that has one of the highest passenger satisfaction rates, at 91%, and which returns more than £200 million per year to the taxpayer. The transformation has included: the introduction of trains every 20 minutes between London and Manchester and between London and Birmingham, and hourly services between London and Scotland; the installation of wi-fi on every train; the lengthening of the Pendolinos to 11 carriages to accommodate growing passenger numbers; and the introduction of free at-seat entertainment services.
My decision is in keeping with the three key principles that I set out earlier: protecting passengers, ensuring value for money and supporting investment. I look forward to the release of the invitation to tender for the west coast partnership in due course and am confident that we will see strong competition for this exciting new franchise, which will help to transform rail travel in this country through to and including the delivery of the first HS2 services.
In the coming years, we will also transform the east midlands franchise, with the biggest investment in the midland main line since it was completed in 1870. Passengers will benefit from more seats, new trains and dramatically reduced journey times from Nottingham and Sheffield to London. Once the work is complete, there will be almost twice as many seats into London St Pancras during the peak compared with today.
The next operator will be required to deliver many of the improvements, so I shall set out today the next step of the competition that will award the contract. Abellio, Arriva, Stagecoach—the incumbent—and a joint venture between First and Trenitalia have all been shortlisted to run the east midlands franchise that will deliver improved services. As I have said, the Government have no adequate legal grounds to restrict Stagecoach from bidding, but the completion will be run on a fair and transparent basis, with new safeguards against over-bidding. Ultimately, the winner will be the firm that offers the best service to passengers and the best value to the taxpayer.
In a competitive market, franchises will sometimes fail. When that happens, my duty is to protect passengers and taxpayers, and to ensure continued investment in the railway. Stagecoach has paid the price for failure, as stipulated in its contract. Passengers on the east coast main line can be assured that services will continue as normal. The Government will undertake a transparent appraisal of the options available to ensure that passengers and taxpayers are protected.
I know that I will hear a lot about nationalising everything. It is worth remembering that, as we have heard today, renationalising our water companies would cost £90 billion. We have heard nothing about the cost of renationalising the railways—due to not just losing the private investment that is bringing in all those new trains, but the billions that would have to be spent to bring those trains back on to the public books. We remain committed to the success of a private railway. Over the past 20 years, passenger numbers have doubled. We have one of the safest railways in Europe, passenger satisfaction is high across the network and other countries are now adopting Britain’s model for running the railways. The plans I have set out will allow the British public to continue to benefit into the future from an ever-improving railway. We have challenges to meet, but we will meet them. I commend this statement to the House.
Mr Speaker
Order. Just before the Secretary of State responds to the shadow Secretary of State, I must say to the hon. Member for Kingston upon Hull East (Karl Turner), who, in his usual fashion, yelled, “It’s a disgrace,” from a sedentary position, that this morning I conducted my weekly Skype session with school students from the Education Centre. They were students of the Herne Bay primary school, one of whom asked me, “Mr Speaker, is there a Member who is particularly cheeky in terms of loud and repeated heckling?” I said, “Well, seeing as you ask, there is a chap called Karl Turner, who is a very agreeable fellow, but he does tend to go from nought to 60 in about five seconds.” I proceeded to educate the pupils of that primary school class in the favoured expressions of the hon. Gentleman—“Shocking” and “It’s a disgrace”—and his ritual exhortation, which fortunately I have not heard today to a Minister, to wit “be’ave”, which he makes while conspicuously failing to do so himself.
Chris Grayling
As we were caught short by the speed of the urgent questions, I know that the hon. Gentleman did not have as much time as he might have wished to prepare, but I am not sure that he listened to a word I was saying. He talked about a bail-out culture, gifts and standing up to people, but I have just announced that we will terminate a contract and that we may bring the operation of this railway back into the system of operator of last resort, which is, if I recall correctly, what Labour did in 2009.
I intend to ensure that I do what offers the best value for the taxpayer and the best option for the passenger at a time when exciting things are happening on this railway. New trains arriving in the coming months will transform the journey for passengers on the route, and that is long overdue. In the next control period, there will be investment in different parts of the route in order to improve performance in places where it is desperately overdue. The future is promising for the passengers on this railway, as they will have a better travel experience in the months to come.
The hon. Gentleman talked about long-term thinking, which is precisely what the east coast partnership is about. It is about unifying track and train in a way that I believe the public of this country want, and people on the railway believe that this will lead to a more efficient railway. The more that we can reunite the day-to-day operation of the track and trains right across the network, the more reliable a railway we will have.
Chris Grayling
The hon. Gentleman says from a sedentary position, “Nationalise it” but this country has done that before. It was called British Rail and it became a national laughing stock. Whatever else we may do, I have no intention of leading our railway system back into the days of British Rail, when lines were closed, routes were axed and the system received a lack of investment year on year because it was competing with schools and hospitals for the capital available. I have no intention of recreating British Rail, although Labour may do. I have a strategy that involves bringing together track and train, a long-term vision of investment, expanding our network and new trains. That is what passengers want.
Iain Stewart (Milton Keynes South) (Con)
The west coast main line is a vital railway service for my constituency. Virgin has indeed transformed that service over the duration of its franchise. Will my right hon. Friend say a little bit more about the duration of this direct award? What additional features can my constituents expect during that time?
Chris Grayling
My expectation is that it will last no more than two years—possibly only one year. It is important to get the west coast partnership structure in place to go through the bidding process, and we will shortly be issuing the invitation to tender. I can only reiterate that there is a clear corporate difference between the east coast main line, which is 90% owned by Stagecoach, and the west coast main line, which performs well and is majority owned by a different company, Virgin Trains. Whether the brand is used on both is neither here nor there; it is a different corporate entity. There is no possible legal benefit or passenger benefit from somehow ripping this up for an interim period, rather than moving seamlessly into the future and the path towards HS2.
Alan Brown (Kilmarnock and Loudoun) (SNP)
Despite what the Transport Secretary says, the franchising system is quite clearly not working, especially given today’s further announcement. When all these announcements are made, we keep hearing about the private investment that privatisation of the railways has brought in with the increasing passenger numbers. The reality is that all that new investment is paid for by the rail users. Sure, it might make the railways more attractive, but it is being paid for by those who use the railway. It is not magic money; it comes out of our pockets. It is quite clear that the parent company guarantee system is not working. If it were working properly, the east coast franchise would continue until the end, so there is clearly a failure in the system.
The Secretary of State did the usual bluster, but he mentioned water companies when he was talking about nationalisation. Well, I have news for him: in Scotland, the water company is a national company. It is owned by the public and operates successfully. The Scottish Government are also looking into a public sector rail bid, so these things can work. If the Transport Secretary’s defence is that Stagecoach got its sums wrong, what does that say about the Government’s due diligence on the tenders that were submitted? The fact is that the Government followed through and awarded the tender to a company that got its sums wrong. That is another reflection on his Department.
All this follows the west coast main line tender farce—the franchise deal collapsed in 2012, resulting in the direct award to Virgin, which is now going to get another direct award. There are way too many direct awards in the franchise system, and that kind of goes against the ethos of competition that a franchise is supposed to bring, which again highlights that the system is not working. What will be the duration of the next award and what impact will that have on the timescales for HS2? Will the Secretary of State give us accurate timescales for the HS2 tender process?
On the east coast and west coast awards, will the Secretary of State follow the Scottish Government’s lead? All employees on the ScotRail franchise are paid the real living wage, there are no compulsory redundancies and ScotRail is operating at a higher satisfaction level than the companies in the rest of the UK. For once, will he seriously consider the devolution of Network Rail to Scotland? That would save his Department money, take away some responsibility—given that it is a failing Department—and perhaps make up for a £600 million shortfall in maintenance monies allocated for the next control period in Scotland.
I have one final question. [Hon. Members: “Oh!”] How is the Secretary of State’s new railcard system working? What funding has been put in place for it? Does the inflation-level rise he has agreed cover the new railcard?
Mr Speaker
I do not know how long it seemed to the right hon. Gentleman, who is usually quite a patient fellow. Not everybody, I am afraid, is as succinct as the right hon. Gentleman, who has developed it into an art form, but the hon. Member for Kilmarnock and Loudoun (Alan Brown) must do better.
Chris Grayling
We are going to hear a lot today about the public versus private argument. What SNP Members, and indeed Labour Members, have not remembered is that if the investment has to come from the public sector, it competes with money for schools, hospitals and the armed forces. That means that, as happened in the days of British Rail, our rail network is starved of investment, and we saw the consequences. By contrast, the new trains that are shortly going to be arriving in Edinburgh Waverley and going up the east coast to Aberdeen are paid for by the private sector.
Chris Grayling
Of course they are paid for by the customers. The private companies make the investment and they make the return on that investment because the passengers pay for fares. That is the way that business works. Perhaps Labour Members do not understand the way that business works. Customers buy something they want to buy. I am absolutely certain that customers want to travel in brand-new trains. That is long overdue on the east coast main line, where they have regularly failed to do so. However, there are clearly lessons to learn on this. That is why we have moved much more towards a quality basis for new franchises. I want an increased quality of service delivered to be the basis for the allocation of new franchises.
The hon. Member for Kilmarnock and Loudoun (Alan Brown) asked about the west coast main line direct award. As I said, it will run for between one and two years. It will finish as soon as possible. I want this up and running. We are going to issue the ITT for the west coast partnership very shortly.
The hon. Gentleman raised the issue of staffing. The private sector-run east coast main line is today employing more people than it did in the public sector. As somebody who believes passionately that we need more customer service staff on the railway rather than fewer, I think that is a good thing.
The hon. Gentleman asked again about the devolution of Network Rail. I simply reiterate that I think that the SNP Government have quite enough to do without going beyond the devolution recommendations that we have put in place.
As regards the travelcard, it is being issued by the industry, which is moving ahead quickly with preparations for it.
John Penrose (Weston-super-Mare) (Con)
The last time the Secretary of State stood at the Dispatch Box, I asked him about open-access rail and competing rail firms. He rightly waxed lyrical about the benefits to customers in terms of choice and value that open-access rail can produce. As he looks at the options for the east coast main line, will he consider, in addition to the two options he has laid out for the House, an open-access alternative so that we can get away from the state-led and potentially even nationalised set of alternatives that we are otherwise being pushed towards?
Chris Grayling
I know that my hon. Friend feels very strongly about this. He is right about the benefits of open access. My view is that open access holds the existing operator’s feet to the customer service fire to make sure that it delivers. It would not be realistic to do this in timeframes available to me for making the change that we are going to need. However, I am very clear that the rules around the creation of the east coast partnership must and will leave room for open access.
Melanie Onn (Great Grimsby) (Lab)
The reason given for not providing residents of Grimsby and Cleethorpes on the east coast a direct service to London was the impact on Virgin’s profits. Will today’s announcement see any progress on a direct rail link line for my constituents, or perhaps a cut in the amount they are shelling out for their fares?
Chris Grayling
I very much hope and believe that we will be able to create opportunities for more direct services to east coast towns in the years ahead. There is no reason why this route cannot be used for further open access, if the Office of Rail Regulation judges that the capacity is there. It is very much down to the regulator to decide what is realistic and what is not. It is as much about whether it can be done logistically as anything to do with profitability. [Interruption.] The hon. Member for Middlesbrough (Andy McDonald) says, “Easy get-out.” There is only so much capacity available. I hope, however, that the investment going into the east coast main line during the next control period will free up additional train paths and additional capacity. Of course, when HS2 arrives it will create a complete step change for the east coast main line and allow for services to a whole range of new destinations.
Maggie Throup (Erewash) (Con)
With Stagecoach remaining on the shortlist for the East Midlands franchise, which serves my constituents, will my right hon. Friend keep the bid under review and revisit the legal advice he has received over the coming months?
Chris Grayling
I will be immensely careful about both the legal position and what is right for the midland main line. We will take the bid that will deliver the best outcome for passengers, and we will do so in a way that fulfils the legal advice. I am not interested in a second-rate solution for passengers. We will be providing much upgraded services and new trains, and the people who operate those new trains have to be the right ones.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
Is the Secretary of State aware that I am very disappointed he did not inform me he was attending a well-publicised meeting in the centre of Huddersfield in my constituency on Friday? He had the opportunity to talk to me and some of my constituents about the deterioration of the east coast line over recent years and the fact that not only the east coast line but the network across the north of England is a very great concern for my constituents who use it to get to work.
Chris Grayling
Just to reiterate, I did make sure that my office contacted the hon. Gentleman’s office on Friday morning to tell them I was going later in the day to meet Conservative councillors ahead of the council elections—an event that I would not normally invite him to. I was particularly struck by how thoughtful the Conservative team in Huddersfield is about the potential transport improvements for that area. It was a very valuable set of discussions.
Sir Desmond Swayne (New Forest West) (Con)
How good is Lord Adonis’s memory?
Chris Grayling
I am not a doctor, but I know that there is no record whatever of any ban on National Express continuing to bid for franchises after 2009. I am sure that the legal advice then was the legal advice I have now. Whatever one may say in public, the reality is that no legal constraint was placed on National Express from further bidding for franchises.
Dr Roberta Blackman-Woods (City of Durham) (Lab)
I think it is the Secretary of State who has the short memory, so I will remind him that this is the third time in 11 years that a private sector franchise on the east coast line has failed. Can he explain to the House why his Department prevented East Coast, a public company that ran the railway superbly for both passengers and the taxpayer, from bidding for this contract? Will he today commit to changing the rules so that public sector companies can bid for these franchises?
Chris Grayling
The key point to remember is that this is a franchise that has increased the number of services, increased the number of staff it employs, improved its passenger satisfaction rating and is providing a larger payment to the taxpayer, notwithstanding the troubles I have set out today. That, to me, suggests that it is getting something right. I want to be absolutely clear—[Interruption] Notwithstanding the sedentary comments, it is really important for me to pay tribute to the hard work of the staff who work on the east coast main line, who have done a good job in improving the quality of service for passengers. It is not their fault that their company got the financing of this wrong.
Luke Graham (Ochil and South Perthshire) (Con)
Can my right hon. Friend confirm that every penny of the £165 million guarantee that was insisted on in the franchise agreement will be reclaimed by the taxpayer?
Chris Grayling
Absolutely, and indeed, that has already happened. I am absolutely clear that Virgin-Stagecoach will fulfil this contract to the letter.
Chris Grayling
The shadow Secretary of State has failed to understand what I keep saying, which is that this railway every year continues to generate a substantial contribution to the taxpayer, and that will continue right the way through until 2023 and beyond.
Heidi Alexander (Lewisham East) (Lab)
May I ask the Transport Secretary for an update on station accessibility improvements? Hither Green in my constituency was due for a major upgrade in this control period, but that was kicked into the long grass by his predecessor. How much has been allocated for these improvement projects in the next control period, and will projects that were priorities last time around but lost out continue to be priorities?
Chris Grayling
There will be a continuation of the accessibility fund in the next control period. We have not decided exactly how much it will be, but I can give the hon. Lady an assurance that I will want to make sure that where commitments have been given in the past, we will seek to fulfil them in the next control period.
Robert Courts (Witney) (Con)
Will the Secretary of State confirm that privatisation has brought investment of £6.4 billion to our railways over the past 10 years, and that when awarding franchises both on the east coast main line and on the Cotswolds line—the GWR franchise, which is being consulted on at the moment—his guiding light will always be the quality of service provided to passengers?
Chris Grayling
This is now very much my approach. My view is that if the service is really good, revenues will follow. While it is absolutely essential that one seeks to achieve best value for the taxpayer in a bidding process, there is already a different balance between the amount of money bid and quality, and the balance will continue to evolve towards quality. That is what matters to passengers, and what drives revenues.
David Hanson (Delyn) (Lab)
If the Secretary of State rushed, he would just about get the 6.10 from Euston to Flint in north Wales, and it would cost him £283 for a return ticket. In the next two years of the direct award franchise for the west coast main line, does he expect prices to stabilise, or indeed fall?
Chris Grayling
The right hon. Gentleman is an astute Member of the House, and I have no doubt that he would have bought an advance ticket for a fraction of the sum he mentioned. Really good value is available on the west coast main line, although for those who turn up at the last minute—as, indeed, is the case with airlines and many other forms of transport—there is a higher price to pay. I believe that since the passenger numbers on the west coast main line continue to rise and services continue to be rated good, the current operators must be doing something right.
Alex Chalk (Cheltenham) (Con)
It seems clear that Stagecoach miscalculated, overbid and is now paying a £200 million price. Can anything more be done to avoid private sector companies overbidding and setting themselves up to fail, and can those lessons be learned in time for the GWR extension, which will affect my constituents in Cheltenham?
Chris Grayling
It is really important that we do so. We have in fact already changed the way the franchising structure works for the most recent franchise. The south-eastern franchise, which is out to tender at the moment, has a different approach to the issue of risk sharing. We have to be careful: on the one hand, we must seek to get best value from the franchises, but on the other hand, we need to make sure that they are resilient. It is a balance, and we have to try to get this right, but we are seeking to improve the balance between the risk to quality and the revenue we receive.
Paula Sherriff (Dewsbury) (Lab)
While the east coast main line was under public ownership between 2009 and 2015, passenger satisfaction, punctuality and reliability reached record high levels. Has the case not therefore been made for renationalisation based on these principles?
Chris Grayling
Except that since the line returned to being operated by Stagecoach, passenger satisfaction levels have risen, the number of employees has risen, the return to the taxpayer has risen and the number of services has risen. In my judgment, the day-to-day operation of this railway has proved very successful over the past two or three years, even though its finances have been disastrous.
Stephen Kerr (Stirling) (Con)
In my right hon. Friend’s statement, he said that the financial reward for Stagecoach at the end of its contract would be set on the basis of the achievement of “specified passenger benefits”. What does he have in mind?
Chris Grayling
I want continued improvements of the kinds committed to in the original franchise documents —better services, more services. If there is to be any payment at all at the end of this direct award, it has to be on the basis of an improved situation for passengers and better services. As far as I am concerned, this will be a not-for-profit award on a year-by-year basis if—if—we go down this route. Such a decision has not been taken, and I will not take it until I have seen the evidence on either side; and I will be completely transparent about it. Any payment at the end of a direct award has to be linked to a much better deal for passengers.
Tom Brake (Carshalton and Wallington) (LD)
Can the Secretary of State confirm that if any Virgin or Stagecoach directors receive any bonuses in relation to the east coast project, they will have them clawed back?
Chris Grayling
Given that the company has lost nearly £200 million over time and has, I believe, effectively wiped out all its profits from rail operations for the past four years, I would be extremely surprised if its management wanted to pay any bonuses at all. If they do, they will not be paid for by the taxpayer, but out of the company’s reserves, but I will be gobsmacked if they are paying bonuses on this at the moment.
Kevin Foster (Torbay) (Con)
I welcome the general tone of the Secretary of State’s statement, in particular the emphasis on Stagecoach taking the hit rather than the taxpayer. Can he tell me what lessons will be learned for the great western railway franchise from what has happened with the east coast franchise?
Chris Grayling
I am very clear that when the great western franchise is let, it has got to be based to a much greater degree on quality. As my hon. Friend will be aware, we are consulting on the possibility of having a separate south-western franchise. I am looking forward to hearing responses on that—I am open-minded about it—but I am clear that the next great western franchise has got to deliver better and more innovative services for people in the south-west. It is why, for example, we are now working with Great Western with a view to reintroducing a passenger service to Okehampton, which is something there is a clear opportunity for.
Tony Lloyd (Rochdale) (Lab)
The Secretary of State was very casual in dismissing the comment of my right hon. Friend the Member for Delyn (David Hanson). People who use the west coast main line feel that it is very expensive, because there is so little competition. During this period, when he has imposed a new contract, what will he do to guarantee that there is value for money and that we will not simply see ticket prices go up, when they should be going down?
Chris Grayling
All I can say, again, is that this railway line is well used and has seen an increase in passenger growth and customer satisfaction—it is the highest-rated railway in the country. I never want to see fares go up, but pay rises happen each year and there are costs to meet. Therefore, I am not offering a cut in fares, but we will operate a tight regime around the franchise to make sure it is not abused.
Mr Philip Hollobone (Kettering) (Con)
May I thank the Rail Minister for agreeing to meet the formidable Kettering rail users group this coming Wednesday in his office? They are going to bring with them constructive proposals for how the rail service to and from Kettering might be improved. May I urge the Secretary of State to recognise that Kettering is the most northerly junction from London between the Corby-to-St Pancras service and the midland main line itself? Thus, Kettering’s status during the next franchise should be enhanced.
Chris Grayling
Both my hon. Friend and the Kettering rail users group are powerful advocates for Kettering. I am sure they will be pleased by the investment going in. I was on the line the other day, and I could see all the engineering work taking place north and south of Kettering. There will be much better train links into London and, importantly, far more seats at peak times from Kettering, and we will be looking carefully at how we can ensure that passengers from Kettering have the best possible experience.
Lucy Powell (Manchester Central) (Lab/Co-op)
With the collapse of this contract and the collapse of Carillion recently, is this not a moment for us to be clear with the public that we are learning the lessons of these contracting exercises? People are coming in, overbidding or undercutting —or however one likes to put it—to kill off the competition and yet cannot afford to provide these public services. We need to be really clear with people that we have learnt the lessons and understand and that this will not happen going forward.
Chris Grayling
Actually, I absolutely agree with the hon. Lady. We do need to learn the lessons—that is absolutely clear. That is one reason why we have shifted much more clearly towards a different risk-based approach on current franchises and why we are moving towards a greater element of quality on current franchises. It is worth saying that the winning bid for the new south-western railway franchise was not the highest bid; it was the highest-quality bid. That is important. We can never militate against corporate failure. What has happened with Carillion has been tragic, but we took a lot of precautions on the rail network and HS2 to make sure there was not a significant impact if the worst happened, which it did; but, yes, of course lessons have to be learned.
Martin Vickers (Cleethorpes) (Con)
While privatisation has certainly resulted in more investment in the network, it is also clear that the existing franchise system needs reform. At the moment, we have competition for gaining the franchise, but very little competition in the actual provision of rail services. If we are to have improvements to services such as the direct service to Grimsby and Cleethorpes, which has already been referred to, we need to look again at the franchise system. Does my right hon. Friend have any plans for longer term reform?
Chris Grayling
We are looking at the way the franchise system works to try to make sure it is as effective as possible for the future. However, as I discovered, things I would like to do at a number of places on the network are constrained just by the limitations of what is there. My hon. Friend would be surprised by how often it is impossible to deliver a service improvement I would like to deliver, because, in the days of British Rail, a length of track was taken out, a station was closed or whatever. I would not want to go back to the days when services were being axed; I want to be part of a railway and a transport system that is actually expanding and growing, and that is our ambition.
Jenny Chapman (Darlington) (Lab)
On passenger satisfaction, is the Secretary of State aware that, this morning, every service on the east coast main line from my constituency to London was either delayed or cancelled? There is no competition on the line, and this is the third time the franchise has failed. Does he not understand that passengers and staff on the line just want certainty, and that is why they are keen on having a public sector body managing the franchise?
Chris Grayling
Of course, signalling is the responsibility of the public sector Network Rail, so there is a gentle suggestion that the hon. Lady’s proposal may not be the all-encompassing panacea. What our signalling needs is what we are giving it, which is £20 billion of investment over the next four years to renew infrastructure that is old and, in many places, worn out. We are still dealing with the years of under-investment before this Government took office.
David Linden
Thank you very much, Mr Speaker. You are far too kind.
The Secretary of State spoke in his statement about protecting the interests of passengers and taxpayers. When will he look at the example being taken forward in Scotland, where Scottish Government Minister Humza Yousaf has said he is minded to accept a public sector bid to run the railways? What is the Secretary of State’s objection to that? Is it ideology or just an obsession with corporate recklessness?
Chris Grayling
As I said earlier, my ideology is very straightforward: I want more investment in the railways, I want more trains and I want newer trains and new opportunities. Of course, the model the hon. Gentleman is articulating would mean less investment in the railways, because we would lose all the private investment in new trains, for example. I do not believe that that is what the public want.
Sir Edward Davey
Thank you, Mr Speaker—that was a difficult choice for you.
The Secretary of State has today acted when a franchiser overpaid, hitting its shareholders. Will he commit to the House that when a franchiser under-delivers, hitting the passengers, he will also act?
Chris Grayling
If a company is systematically failing to deliver, yes. However, in many cases—indeed, I suspect I know precisely what the right hon. Gentleman is talking about—the infrastructure is the problem, rather than the train company. I cannot blame one person for another person’s failings; what I can do is try to sort out the failings that lead to these problems in the first place. If we look at the Waterloo line, for example, where the problems last autumn were caused by a technical problem around the Waterloo works, which took about two months to get rid of, that is a good example of where Network Rail problems caused the issues. That is why we need that £20 billion investment in renewing those parts of the infrastructure that are too prone to fail.
Points of Order
Lord Grayling Excerpts(6 years, 11 months ago)
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Mr Speaker
I am very grateful to the hon. Lady for her point of order and for her courtesy in giving me advance notice that she wished to raise this issue.
What I would say—and it is very commonplace for me to get points of order of this type—is that I understand her concern to achieve a meeting with Ministers on a matter which is of importance to her constituents. Clearly, she had that prior commitment. It is customary, but not to be guaranteed, that a commitment by a Minister will tend to be honoured by his or her successor. While I would hope that Ministers would be even-handed in their response to Back-Bench Members on both sides of the House, I have nevertheless to say to the hon. Lady that it is not for me to tell Ministers whom they should meet; it is for an incoming Minister to decide whether to continue with a meeting arranged by his or her predecessor.
If a Minister goes to an area and is principally concerned to have what would be called a political meeting with members of his or her party, that may be exceptionally irritating to a Member who is not a member of that party, but it is not, of itself, illegitimate. There is no bar on Ministers undertaking party political activity alongside their ministerial duties.
All that said, I think that this place works best when there is a basic courtesy and respect from one Member to another. The hon. Member for Blackpool North and Cleveleys (Paul Maynard), who was previously the serving Minister, has always struck me as a most courteous fellow, but, looking at the Treasury Bench, I have known the Secretary of State for at least two decades, and we have always enjoyed very cordial relations—he is a most courteous chap. As for the hon. Member for Orpington (Joseph Johnson), well, I think my cup runneth over—the hon. Gentleman is personable to a fault. I cannot understand why neither of them is willing to meet the hon. Lady—I would have thought that they would think it a most worthwhile enterprise.
Mr Speaker
It looks as though an explanation is in the offing, because the Secretary of State is perched like a panther ready to pounce. Let us hear from the fella.
Chris Grayling
Mr Speaker, as you know, I am regularly around this House. I am sure there will be plenty of opportunities for the hon. Lady to tap me on the shoulder and say, “Would it be possible to have a meeting? There has been a reshuffle.” I would be delighted to organise a meeting with the Department. However, what I cannot offer her is a commitment that, when I attend a meeting with Conservative councillors in a constituency, I will invite the Member from the neighbouring constituency at the same time. I am afraid that that issue is completely separate, but I am very happy to ensure that she has a meeting with Ministers.
Contingent Liability: Notification
Lord Grayling Excerpts(6 years, 11 months ago)
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The Secretary of State for Transport (Chris Grayling)
I have today laid before Parliament a departmental minute describing a Contingent Liability (CL) of £4 million associated with Solum JV.
Solum JV was created in 2008 to help Network Rail (NR) deliver its agreed housing target. Since its formation, the Solum JV has delivered over 200 housing units, has c.200 more under construction—to complete by 2021—and a pipeline of c.1500 further units, subject to planning and other approvals.
This counter-indemnity, for which NR’s CL of £4 million will be matched by its JV partner, Kier, will cover further multiple residential developments being built by the JV, initially at Twickenham and Walthamstow Phase 2 stations.
The Treasury has approved the proposal in principle. If, during the period of 14 parliamentary sitting days beginning on the date on which this minute was laid before the House, a Member signifies an objection by giving notice of a parliamentary question or a motion relating to the minute, or by otherwise raising the matter in the House, final approval will be withheld pending an examination of the objection.
[HCWS447]
High Speed Rail (West Midlands - Crewe) Bill
Lord Grayling ExcerptsTuesday 30th January 2018
(6 years, 11 months ago)
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The Secretary of State for Transport (Chris Grayling)
I beg to move, That the Bill be now read a Second time.
It is four years since my predecessor, my right hon. Friend the Member for Derbyshire Dales (Sir Patrick McLoughlin), stood at this Dispatch Box to seek powers for a new railway line between London and the north, the first new major railway line north of London for 120 years. At that time, it was simply a concept—an important one but one that seemed a long way off. We have come a long way since. In February 2017, Parliament granted powers to construct phase 1 of the scheme, from London to the west midlands, and works on part of this route have now begun. This project is now a developing reality. We came a step closer to an operating railway when we announced the shortlist of companies that will bid for the west coast partnership and design, launch and operate the early passenger services on HS2.
This vital new rail capacity project, under construction from London to Birmingham, is only the first part of the project. We need to deliver capacity to our northern cities and bring our country closer together. I am pleased to stand here today, therefore, to start the next phase of this vital project. Phase 2a extends HS2 from the west midlands to Crewe. The first stage of the new line, which will take the midlands engine through to the northern powerhouse, connecting the two together, will accelerate construction of the first section of phase 2 by six years and bring us a step closer to delivering a complete brand-new high-speed line all the way to Manchester. That is the importance of today’s debate. It is this link that will take the railway line towards Manchester—finally to one of our great cities and industrial centres of the north-west.
Jonathan Edwards (Carmarthen East and Dinefwr) (PC)
As the Secretary of State will be aware, the statement of funding policy that accompanied the last comprehensive spending review awarded to Wales a 0% Barnett consequential rating for HS2, whereas Scotland and Northern Ireland both had 100%. Unless he can assure the House that Wales will get a 100% rating in the next CSR, my colleagues and I will have no option but to vote against the Bill this evening.
Chris Grayling
If the House does not support the Bill, the Crewe hub and the links to north Wales that it will provide will be simply an illusion, so the hon. Gentleman and his colleagues would be doing down Wales, which would be surprising—though, of course, it is typically Conservative Members who are the real champions of Wales. We will continue to ensure we provide the right connections to Wales.
Dame Cheryl Gillan (Chesham and Amersham) (Con)
I thank the Secretary of State for giving way so early in his speech, and I ask him to forgive me as I may not be able to be here for its entirety because I have other duties outside the Chamber, but I hope to return. He says he is very proud of this new railway the Government are building, but can he explain why he is building a railway with old technology? Back in 2015, the Japanese beat all their records with a Maglev train, whereas we appear to be building something from the last century, not something for the future.
Chris Grayling
It is interesting. I have travelled on the Maglev line in development in Japan. It is a project that has a role to play in the Japanese transport system, but, having studied it at first hand, I do not believe it is the right project for this country, and nor do I believe it could deliver the level of capacity that HS2 will. HS2, of course, is a capacity project that brings with it speed, not the other way around, and that is what our transport system needs more than anything else. It is crucial, too, to the development of the north of England, which has a population of more than 15 million and over 1 million businesses, and which has exports worth upwards of £50 billion. The north of England makes a huge contribution to the success and prosperity of this country, but it needs strong and effective new transport links, and this project will be an important part of that, which is why it is so important to the whole UK.
Dame Cheryl Gillan
The Secretary of State says this is now about capacity, but please can he not change history? When this was first proposed, including the route through my constituency, it was all about speed; otherwise it would not have been allowed to travel on a route that will cause so much environmental damage.
Chris Grayling
My right hon. Friend will know that I have been consistent all the way through in talking about this as a capacity project. I know that she and I are on different sides of the argument, but, from the time I was shadow Transport Secretary a decade ago, I have always talked about this improvement in terms of capacity, and I will continue to do so, because that is the most important part of it. We can debate the rights and wrongs, but I believe it is a capacity project—the speed is a bonus. I do not believe in building something with old technology—we should have a state-of-the-art railway—but the big difference this will make will be to capacity.
Mrs Louise Ellman (Liverpool, Riverside) (Lab/Co-op)
I welcome the Bill, but I note that the Minister referred to connecting the west midlands to HS2. What about the northern powerhouse and Liverpool’s connection to the new high-speed line?
Chris Grayling
I did mention the northern powerhouse. In terms of Liverpool, which, as the hon. Lady knows, is a city I have great affection for, as we move beyond the Bill and develop northern powerhouse rail and integrate what needs to be done in the north with the north-south routes and HS2, I believe that all the great cities of the north—Liverpool, Manchester, Leeds, Newcastle, York, Hull—will benefit, as indeed will places further north, such as Carlisle and Scotland. I will come back to Scotland in a moment.
Sir Kevin Barron (Rother Valley) (Lab)
If that is the case and Ministers are concerned for the north, why has electrification between cities in the north been cancelled?
Chris Grayling
As I have said many times in the House, we are delivering a process of modernisation on the midland main line that will transform journey times and deliver much improved rolling stock and brand-new trains much sooner. Our proposed model will deliver the improvements people want in the early 2020s, which is sooner than any other project would have done.
Anna Soubry (Broxtowe) (Con)
I am grateful to the Secretary of State for giving way; he is being very generous so early in his speech. I agree with him: it is about capacity. We cannot have an effective, modern society unless we have capacity, and we have to have good infrastructure, which means connectivity. Would he therefore consider advancing the Government’s excellent plans for HS2 by bringing on the other piece of the Y to Leeds? I believe that people throughout the whole of the east midlands support HS2, and we want it as soon as possible, please, especially at Toton in Broxtowe.
Chris Grayling
I absolutely agree with my right hon. Friend. Toton is going to be a fantastic centre in the east midlands for commercial development—transport and residential—whose benefits will ripple out across the area and have a hugely positive effect on the whole of the east midlands. I understand her point. We are working as fast as we can to bring before the House the powers we need for the east midlands and Yorkshire leg. I want to get it right—there are sensitivities on the route, as she will know—and I have travelled much of the route myself and looked at the issues as and when they arrive. We will do everything we can to minimise the impact on residents—I understand that such major projects have a negative effect on some people—but I assure her that we will bring the measure for the rest of the route before the House as soon as we can.
I have talked a bit about the north. Let me now talk about Scotland, because I want it to benefit from HS2 on the day it opens. When the full Y network opens in 2033, HS2 trains will run seamlessly on to the west and east coast main lines from the network that is then built. My Department and Transport Scotland are working closely with Network Rail in looking at options that will go beyond HS2. We want to identify options for strong business cases that can improve journey times, capacity, resilience and reliability. Our ultimate ambition is for three-hour rail journeys between London and Scotland’s central belt—a further strengthening of the Union that we all hold so dear. That, I think, is the point: HS2 will be a transformative project for the entire United Kingdom, including the parts that it does not serve directly. The benefits in terms of job creation, business opportunity and technological development will be enormous for the whole country.
Andrew Jones (Harrogate and Knaresborough) (Con)
I strongly support the Bill, and agree with my right hon. Friend’s comments about capacity in our rail network and the positive impact that HS2 will have on our northern economy. Can he tell us a little more about the impact on job creation in the north and elsewhere outside London?
Chris Grayling
I pay tribute to my hon. Friend for the work that he has done on this project. He has been a very distinguished Transport Minister. He has not only made a major contribution to its development, but has been immensely sensitive in dealing with residents. He should take great credit for that.
The point about jobs is crucial. Our industrial strategy sets out a vision of a Britain that is confident and competitive, a global trading nation that is in charge of its own destiny, and HS2 can play a big part in that. Last year we announced which train builders were vying for the £2.75 billion to deliver Britain’s state-of-the-art high-speed trains. That investment alone will create many opportunities in this country.
I have said previously that during the procurement process, as we pick the organisations that will build these trains, it must be clear that they will have to leave a substantial skills and technology footprint in this country. We will not countenance trains being built in another part of the world, put on a ship and delivered to the UK, with no benefit at all to the UK itself. This project will have a lasting impact. Indeed, the whole construction of this railway will create jobs, careers, technologies and expertise that will last a new generation of engineers for a lifetime. That is another reason why it is so crucial.
Michelle Donelan (Chippenham) (Con)
Siemens in my constituency has been shortlisted to provide the signalling for HS2, and Chippenham hopes to benefit from the fact that 70% of the new jobs will be outside London. Does my right hon. Friend agree that this project has the potential to benefit the south-west as well?
Chris Grayling
My hon. Friend is right, and I am delighted that Siemens has been shortlisted for that work. I want as much of the work as possible to be done in the United Kingdom, so that we can develop that skills footprint, developing those young apprentices and developing the engineering skills that we need for the future. That must happen throughout the United Kingdom: south-west, north-east, Scotland, Northern Ireland, Wales, south-east, midlands, the north and East Anglia. I want to see jobs and opportunities for British businesses, and businesses based in Britain.
Sir Patrick McLoughlin (Derbyshire Dales) (Con)
Does my right hon. Friend agree that we have Crossrail as a model? It is being finalised this year, and will be operating next year. That project was built on the use of suppliers in the United Kingdom, and the spread of its supply network throughout the UK. Although it was a London project, many parts of the country have benefited from it. What HS2 is doing is the natural follow-through from what Crossrail did.
Chris Grayling
Absolutely. Crossrail may be a project for transport in London, but it is also a project for engineering and industry in the United Kingdom as a whole. It brings benefits to all parts of the United Kingdom, and HS2 will bring benefits to all parts of the United Kingdom. Northern Powerhouse Rail, when it is built, will bring benefits in southern as well as northern England, and, indeed, throughout the United Kingdom. The more that we invest in these projects, the more economic benefits we will deliver across the UK.
Michael Fabricant (Lichfield) (Con)
May I ask my right hon. Friend not to take his eye off a distant ball, which is the future of the west coast main line after HS2 is constructed? More than 44 stations on that line will not be served by HS2. It is very important for passenger traffic to be maintained on the west coast main line, and to ensure that it is not used just for freight traffic.
Chris Grayling
My hon. Friend is right. As one who has sailed through his local station many times, on Pendolino trains, I believe that we can and should do better at such intermediate stations. We should provide better commuter links to Birmingham and to towns such as Northampton and Milton Keynes, and we should provide better links within the Trent valley—from Nuneaton to Lichfield, and up to Stafford. We will be able to do all those things to a greater degree in the future. Yes, there will be a freight benefit. We all want a freight benefit, because we want fewer trucks on the M6 and the M1, but the fact is that we can do both. Creating that extra capacity on HS2, or via HS2, is, to my mind, its great benefit. It will of course be a fast, state-of-the-art railway, but first and foremost it is about giving our transport system the capacity that it will need to enable us to grow in the future.
I know that there are people for whom this project is bad news. There are people who are affected by the routes, many of whom are in my hon. Friend’s constituency. I genuinely wish it were possible—I am sure that Members in all parts of the House wish it were possible—to deliver infrastructure improvements like this without human consequences, but it is not possible. What we must do is try to treat those people decently.
HS2 has not always got it right, and we will not always get it right, but I give the House today an assurance that I have given it before: when an injustice is being done, we will do everything we can as a ministerial team to sort it out. Members need only come to us and say, “This is unfair”, and we will look at it. Indeed, I have already done so in places up and down the route, and I will continue to do so, particularly in respect of this part of the project. A number of constituencies on the route from the Trent valley up to Crewe are affected. As the two Ministers responsible, the Under-Secretary of State for Transport, my hon. Friend the Member for Wealden (Ms Ghani), and I will happily talk to colleagues during this process. There will, of course, be many opportunities for them to make representations about the impacts to the Committee, assuming that the Bill is given a Second Reading today.
Maggie Throup (Erewash) (Con)
I appreciate what my right hon. Friend is saying today. We have also had many conversations about the ways in which some of my constituents are affected. That has been going on since 2013. We may get there in the end with compensation and agreements, but the problem is that it takes so long—far too long for some people. Some of my constituents are very elderly, and some are quite ill. Can my right hon. Friend reassure me, and my constituents, that we can improve the process?
Chris Grayling
I absolutely give my hon. Friend that assurance. There are processes that we must rightly follow to protect public money, but there are exceptions that always step outside what is planned. Part of the job that we have, as Ministers, is to ensure that when those exceptions arise—and I know that there are two in my hon. Friend’s constituency, which she and I have been talking about—we must resolve them before we reach a point at which those people are suffering in their lives. We are a little bit of time away from the phase 2 Bill and the process involved in phase 2b. As I have said to my hon. Friend and to other Members, we will try to sort out those exceptions so that people do not suffer inappropriately. I will continue to work with my hon. Friend to try to resolve the situation.
Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)
While the Secretary of State is handing out assurances, may I, on behalf of the people of Stoke-on-Trent, ask for an assurance that the existing direct and frequent services from Stoke-on-Trent to London, Birmingham and Manchester on the west coast main line will in no way be diminished or reduced as a result of HS2 taking up some of the capacity through the classic compatible services?
Chris Grayling
As the hon. Gentleman will know—and I have given this assurance to my hon. Friend the Member for Stoke-on-Trent South (Jack Brereton)— I am acutely aware of the issues in Stoke-on-Trent. I want to ensure not only that the high-quality service that it deserves is protected, but that HS2 trains run through it, which is also what it deserves. I have given that clear commitment to the people of Stoke. I want them to have a first-rate rail service, and HS2 will make it possible for them to have an even better rail service than they have at present.
Let me say more about the affected communities. Last week we announced an additional £5 million for communities and businesses that are disrupted by the construction of phase 2a, which can be spent on public projects, community centres and so forth. That will add to what we have already committed in terms of the mitigation and compensation in place, and we will carry on looking at ways in which we can minimise the impact on local people and the areas affected.
Rebecca Pow (Taunton Deane) (Con)
I am totally in favour of the project, as train travel is environmentally friendly because it gets people out of their cars and on to trains. But will the Secretary of State reflect on the potential loss of ancient woodland because of HS2, and whether consideration might be given, where possible, to using tunnels so that we keep these wonderful, magnificent trees? We have only 2% of them left in the whole country. Will we consider doing this? If not, and if there is unavoidable loss, could we consider 30% amelioration, as recommended by Natural England, rather than the figures bandied about today?
Chris Grayling
I am very well aware of the potential impact on ancient woodland. We have already made changes to the design of the project to try to mitigate that impact, and there is an absolute commitment to look to plant afresh and to develop environmental measures to compensate for any loss of woodland. Also, there are some exciting potential projects on the route that can enhance the natural environment at the same time as we are having to make changes elsewhere. I assure my hon. Friend that we are very sensitive to the issue she mentions, and we will do our best to make this project in as environmentally friendly a way as possible. We cannot build something new like this across the whole country without having some impacts, but we can try to mitigate them and put money into positive alternatives. That is what we are committed to, and that is what we will do.
This is a step on the way towards creating a 21st century new rail network: phase 1 to Birmingham, phase 2a to Crewe, eventually phase 2b to Manchester and Leeds, and then across the top with Northern Powerhouse Rail, and then, through that, the connections to the north-east, which the shadow Secretary of State will hold dear, to Scotland—colleagues on both sides of the House representing Scottish constituencies are keen to see that connection put in place—and into north Wales through the Crewe hub that we are working on at the moment.
This project will provide the capacity our transport system needs in the 21st century. It will deliver better journey times and, particularly importantly, much better connections between our northern cities—Birmingham, Sheffield, Leeds—where there are poor connections at the moment; this will make a huge difference to them. But above all this is about making sure this country has a 21st century transport system. I hope the project commands support across the House. I know that some Members have issues both about the principles of the project and constituency impacts. To those with constituency impacts I simply say again that we will do our best to minimise those and to work as closely as possible with them to make sure that people who are affected are treated as decently as possible.
This Bill is enormously important to this House, to the future of this country, to our nation, to strengthening our Union, and to delivering economic growth across the whole country, and I very much hope that this House will give it its support today.
Andy McDonald
I am grateful to the hon. Gentleman for that intervention, and it is key that HS2 integrates. We have just heard words from the Secretary of State about the need to ensure that it does connect with our northern cities, but we are yet to see those plans unfurl. We have heard about Transport for the North’s aspirations, but this cannot be a stand-alone project; it is essential that it links into our great towns and cities throughout the nation.
Linking the great cities of the north and midlands is equally important and will bring much-needed economic benefits to those regions. Labour supports the nearly 30,000 jobs the construction of HS2 will deliver and the huge uplift it will give to apprenticeships and training, particularly outside London. It is not too early to consider how we will retain and develop those skills in the future in other infrastructure projects both at home and abroad. I would be interested in any comments the Secretary of State has on this point, particularly with regard to Northern Powerhouse Rail and Crossrail.
I also make a plea that we must not repeat the catastrophe of the Carillion experience with apprentices. Apprentices in my constituency are being left flapping in the wind, not knowing whether they are going to be paid. We hear today that their employment will come to an end at the end of this month. It is a disgrace that £6.5 million of public money has gone into an apprenticeship programme that leaves our apprentices short of their qualifications and without employment. The Government should intervene now to guarantee that those apprentices will receive that assurance from this Government today.
Chris Grayling
I am grateful to the shadow Secretary of State for giving way, and he and I share that view. I can assure him that, on the HS2 project, the apprentices who were employed by Carillion are migrating to work for Kier and those employed by Carillion have been moved on to the project with the other two partners. So not only should there be no hiatus in the work taking place, but, more importantly, the people on those projects are moving to different companies involved in them. There are obviously some very difficult circumstances elsewhere as a consequence of the collapse of Carillion, but I have been very keen with this project to make sure we have the seamless transition we contracted for last summer, and I am delighted to see the apprentices move on in a way that enables them to carry on with their apprenticeships.
Andy McDonald
I am grateful for that reassurance in the context of these projects, but I am particularly concerned about these apprentices in the here-and-now; there are 100 out of the 1,400 who have been prejudiced in my community and we want to see this Government respond by coming to the table and making sure those young people have a future. It is difficult enough to encourage people into these industries in the first instance without leaving them high and dry, as has happened on this occasion.
I welcome the commitments contained in HS2’s environmental principles. It is imperative that environmental standards and air quality are at the forefront of the project. Many of the arguments about why we need HS2, and why we do not, have been well rehearsed in this House over many years: passenger rail numbers have doubled since 1995; rail freight has grown by two thirds over the same period; and the existing network has been operating at full capacity for years. No amount of timetable-tinkering can change this; I trust that all Members are in agreement about that.
Although it is important to maintain our vital road network, there is an urgent need to secure modal shift across transport: we cannot build our way out of congestion on our roads, and we must be watchful about the sustainability of domestic air travel. In addition, we face the prospect of the population of Britain reaching 70 million by the end of the decade. So the question is: how are we going to move our people around our nation? It is no exaggeration to say that the very economic and social livelihood of this country is at stake. Our capacity to move people by rail and bus is therefore crucial.
Michael Fabricant
But the hon. Gentleman is thin, lithe and athletic. I am talking about a harried husband, a wife, squabbling children and loads of luggage. That is what I am talking about.
Chris Grayling
May I take my hon. Friend slightly closer to home, not perhaps in his own constituency, but alongside? Those people who seek to commute from Rugby, Coventry, Birmingham International and intermediate stations into Birmingham find that their daily journey is delayed by the fact that this line, which is two-track only and which can only be two-track, has express trains, local trains, intermediate trains to Northampton and even some freight trains on it. It is chaotic and jammed all the time. HS2 takes off the express trains and gives those people a better commute into Birmingham. Is that not something that the west midlands should champion?
Michael Fabricant
My right hon. Friend is absolutely right about that. I do not think that there is any argument about the capacity problem. It was he, or perhaps it was my right hon. Friend the Member for Derbyshire Dales, who said that the west coast main line is operating at 100% capacity and that it is the busiest line in Europe. In fact, it is a triumph in that people have moved on to those trains in their millions since the time when a Labour Government were in power, and certainly since the time of nationalisation—and we all remember those curling sandwiches. Of course there are advantages, too, but it could have been done in a much better way. It is not a connected service. What do we have now? The genesis of it all was Lord Adonis who, in 2007, came up with the idea of the route. I can tell Members that he was astonished when the Conservative Government accepted that route. Again, let me say very clearly that I am arguing not against HS2 itself, but against the way in which it is being executed. That is what I am criticising. Lord Adonis wanted an ultra-high-speed line. As a consequence, he got rulers on maps, drew straight lines, crashing through countryside, which had previously not been damaged, destroying ancient woodlands, and generally messing up the entire area.
Automated and Electric Vehicles Bill
Lord Grayling ExcerptsMonday 29th January 2018
(6 years, 11 months ago)
Commons ChamberRead Full debate Automated and Electric Vehicles Act 2018 View all Automated and Electric Vehicles Act 2018 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Consideration of Bill Amendments as at 29 January 2018 - (29 Jan 2018)
The Secretary of State for Transport (Chris Grayling)
I beg to move, That the Bill be now read the Third Time.
I would like to take this opportunity to thank my right hon. Friend the Member for South Holland and The Deepings (Mr Hayes) for all his work and for the dedication he has shown to the Bill, including in his contribution tonight, which he made with customary good cheer. He brings great knowledge to the subject and I commend him for all that he has done. On Second Reading he referenced Henry Ford, who said:
“Coming together is a beginning; keeping together is progress; working together is success.”
He has certainly exemplified those sentiments in his work on the Bill.
I am grateful to all right hon. and hon. Members who have participated throughout the passage of the Bill, particularly in Committee. I thank the Committee’s Chairs, the hon. Member for West Bromwich West (Mr Bailey) and my hon. Friend the Member for Gainsborough (Sir Edward Leigh), for guiding the Bill skilfully through its scrutiny.
The Government are committed to maintaining the UK’s position as one of the best places to research and develop modern transport technologies, such as automated and electric vehicles. Despite our differences in this House, I think we all share that ambition. We have some fantastic automotive centres in this country—the hon. Member for Washington and Sunderland West (Mrs Hodgson) referred to one in the north-east, which I have visited and know is a fantastic plant. We all want to see the automotive sector grow and develop, and this is a fantastic opportunity for it to do so. The Bill is designed to help keep the UK ahead of the curve.
Automated vehicles will revolutionise the way we travel and deliver better journeys, making journeys safer and improving mobility for more road users. It is estimated that the market for autonomous vehicles will be worth £28 billion or more each year to the UK. The Government want to see fully self-driving cars, without a human operator, on UK roads by 2021, and I believe that is entirely realistic. The Bill sets the legislative groundwork for automated vehicle insurance. When you drive your car, Mr Deputy Speaker, it is you who is insured, not the vehicle. As a result of the Bill, in future the vehicle will equally be insured. That will give people confidence that they can purchase these vehicles and have the insurance cover they need.
We have plans for further ways in which we can take advantage of this groundbreaking technology, with amendments to existing legislation. For example, we are already holding an open consultation on the safe use of remote control parking systems—a form of advanced driver assistance technology that is becoming very visible and real now. We will be updating our world-leading code of practice for testing automated vehicles to allow developers to apply to test their vehicles in the UK. We will also be working with the Law Commission to set out proposals for a long-term regulatory framework for self-driving vehicles.
Richard Burden
I am sure that Members on both sides of the House share the enthusiasm for these new technologies, but has the Secretary of State seen KPMG’s “Autonomous Vehicles Readiness Index”, which compares the readiness of different countries for taking up these technologies? The UK performs fairly well on technology: we are ranked fifth, behind Germany, Sweden, the Netherlands and the United States. Interestingly, we drop to 10th place when it comes to readiness of infrastructure, the road system and the availability of 4G. Can he give any indication of how we can start to turn that around?
Chris Grayling
The hon. Gentleman makes a valid point. This legislation is part of the process of keeping us as close as possible to the top of that league table. Clearly the presence of 4G and 5G networks is immensely important. He will know that this week my right hon. Friend the Secretary of State for Digital, Culture, Media and Sport has talked about the Government’s achievements and ambitions for our broadband network and our 4G and 5G networks. It is absolutely essential, if we are to maximise this technology’s potential in the UK, that we have state-of-the-art IT systems. That is what the Government will continue to work towards.
To harness the revolution and take advantage of the potential of electric vehicles, we must continue to build the infrastructure they need. It needs to be ubiquitous and fast-charging, and this legislation will help secure that. Of course, that is backed by Government funding. In the Budget last November, the Chancellor announced a new £400 million electric vehicle charging infrastructure investment fund, £100 million of new funding for the plug-in car grant to help consumers purchase these vehicles, and of course we will play our part too by ensuring that 25% of cars in the central Government departmental fleet will be ultra low emission by the end of this Parliament. Through the Bill, we want to make it easier to recharge an electric vehicle, and that will be one of the consequences of what we have all debated today.
Alan Brown (Kilmarnock and Loudoun) (SNP)
The UK Government have committed £200 million towards the roll-out of infrastructure. Previously, the Secretary of State for Business, Energy and Industrial Strategy agreed with me that any allocation to Scotland has to be based on needs, including geography, rather than on population. Can the Transport Secretary confirm that he shares that view?
Chris Grayling
This has to be a United Kingdom-wide effort. Scotland is no different from the rest of the United Kingdom: it has rural areas, remote rural areas and busy urban areas. We will need to make sure that all those who seek to buy these vehicles have access to the appropriate charging points. This legislation will help to do that, as will Government funding. The Barnett consequentials of the Government funding announced in the Budget will enable the Scottish Government to play their part, along with private investment.
Taken together, the measures in the Bill will ensure that the UK is at the forefront of this profound technological shift. It will provide cleaner vehicles, easier travel and safer roads—all part of a transport system that works for everyone in this country, both today and in future. I am grateful to everyone who has been involved in working on the passage of the Bill. I hope that it makes a genuine difference. I am grateful to the whole House for uniting behind the Bill’s principles. Let us go forward and make sure that this country is a real success story in this field.
Oral Answers to Questions
Lord Grayling Excerpts(6 years, 11 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Stephen Hammond (Wimbledon) (Con)
The Secretary of State for Transport (Chris Grayling)
The private sector has generated almost £6 billion of private investment over the past decade, providing new trains, upgrading stations and transforming the passenger experience.
Stephen Hammond
I thank my right hon. Friend for that answer. The irony will not be lost on him that public sector satisfaction in the railways is declining as Government influence is at its highest since rail privatisation. What discussions has his Department had with Network Rail to change procurement and design practices so that the private sector can have more influence in funding and financing future projects?
Chris Grayling
I want to see both. We have just announced the biggest investment programme in our railways—over the period 2019 to 2024—since the steam age, including £20 billion of renewals. That is crucial: one of the reasons why we talk at Question Time about train delays is that the infrastructure in many places desperately needs renewal, which is why we are spending £20 billion on that. It is also important that we bring in additional private finance alongside that public investment, and I have been discussing extensively with Network Rail how we can make that happen.
Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)
The private sector can only bring in investment if it knows what the Government’s plans for infrastructure are going to be. Will the Secretary of State tell me now what the latest Government position is on the electrification of the trans-Pennine line?
Chris Grayling
I have just received the proposals from Network Rail, and we are now reviewing them. My aim is to start this £3 billion upgrade within a matter of months. The project is due to really get under way next year. We are looking at all the different options but, as I have said, electrification will be part of the programme.
Sir Patrick McLoughlin (Derbyshire Dales) (Con)
Up until 1992, when the only investment in the railways came from the public sector, rail usage was declining. Since privatisation, we have seen a massive increase in the amount of people using the railways. Does my right hon. Friend agree that that is because of the changes that the private sector brought in?
Chris Grayling
I absolutely agree with my right hon. Friend. I do not understand the policy adopted by the Labour party. We are now seeing the construction of thousands of new carriages funded by the private sector, and we are getting rid of some of the legacy trains from the days of British Rail that were not up to scratch in those days and are certainly not up to scratch now. That is because private money is coming in alongside our investment programme.
Tony Lloyd (Rochdale) (Lab)
The real question for the Secretary of State is: does he have the political will to ensure that the money is available to invest in the northern rail system in this generation? Not jam tomorrow. Trains today.
Chris Grayling
The answer to that is clearly yes, because every single train in the north of England is being replaced or refurbished as new. All the old Pacer trains are going, and we are about to start the trans-Pennine upgrade, which will account for one third of the total funding available for enhancement on the railway between 2019 and 2024. That is a large investment programme that will make a difference to the north, and it is a sign of our commitment to the north.
Dame Cheryl Gillan (Chesham and Amersham) (Con)
Following the sad demise of Carillion, will the Secretary of State confirm that he is carrying out a full review of the HS2 project, including the business case, to ensure that the remaining private sector companies have the capacity to deliver the project without serious overruns and extra cost to the taxpayer?
Chris Grayling
My right hon. Friend will be relieved to know that the demise of Carillion, a tragic event for this country and for corporate Britain, will none the less not affect the HS2 project. The existing contract is part of a three-company consortium, and the other two companies, Kier and Eiffage, are taking over responsibility for the project. The apprenticeships are being transferred, the staff are being transferred and the project will continue uninterrupted.
Andy McDonald (Middlesbrough) (Lab)
On 17 July last year, the day on which Carillion was confirmed in the HS2 contract, I asked the Secretary of State about the financial instability of the company. He declared himself to be confident that the expected results would be delivered. Given the unfolding events of the last few days, has he now reflected and does he now accept that he got it spectacularly wrong and that his judgment and confidence were disastrously misplaced?
Chris Grayling
I do not accept that at all. The hon. Gentleman referred specifically to the HS2 contract. At the time, I reviewed those carrying out the contracting very carefully, and I have carried out due diligence since. As I said a moment ago, the HS2 project will not be affected by this, even to the point, I am pleased to say, that the apprentices working with Carillion on the project are being transferred to one of the other two partners. The work will continue uninterrupted. There is no delay and there are no cost implications.
Andy McDonald
On Monday, The Times newspaper said:
“The transport secretary’s decision to award lucrative contracts to an ailing Carillion is only the latest worrying misjudgment to come to light.”
It highlighted his trip to Qatar on the day of the biggest rail fare hike in five years, the notorious £2 billion east coast bail-out and his dysfunctional dealings with trade unions in the private sector, saying that the Prime Minister
“needs to consider whether it is time that this transport secretary left the station.”
Has not The Times got it absolutely right?
Chris Grayling
The only station that I am going to be leaving is Euston station for a visit to the midlands this morning. There has been no £2 billion bail-out of Virgin Trains East Coast. The contracting with Carillion was actually not with Carillion, but with a consortium of companies that are equally responsible for delivering the contract and will do so. I am happy to stand here to defend the record of a Government that have done more for our transport system than has happened in decades. That is in sharp contrast with what the Labour party did over 13 years in government, which was very little indeed.
Rebecca Pow (Taunton Deane) (Con)
The Secretary of State for Transport (Chris Grayling)
Figures for transport spend in the south-west show a significant increase—part of a pattern, Mr Speaker—totalling £1.7 billion in 2016-17 alone. That spend is helping to deliver a package of investment worth over £2 billion on the strategic road network in the south-west, as well as investing more than £400 million in the rail network.
Rebecca Pow
I very much welcome the commitment to funding for the notorious A358 in my constituency, and I am pleased that the Secretary of State and Highways England listened to local concerns and my calls for a new consultation, which opened just this week with three proposals. However, I would like an assurance that the upgrade will deliver not only strategically, but for local people and for productivity in Taunton.
Chris Grayling
This is an important matter. The A303 and the A358 are a crucial part of our investment programme in the west country, and they will open up a new corridor for people travelling down to the south-west, but they do have to work for my hon. Friend’s constituents and others in the region, particularly for the new employment area next to the motorway in her constituency. I assure her that I will continue to work with her to ensure that the projects delivers both for the region and nationally.
Dr David Drew (Stroud) (Lab/Co-op)
There is some evidence that trains from Paddington to Bristol and onwards are much better, less crowded and more reliable. However, people face delays and overcrowded and unreliable trains when getting from the south-west to the midlands. Will the Secretary of State put some funding into those lines?
Chris Grayling
I am aware of the particular congestion problems on the CrossCountry franchise. We will be re-letting the franchise shortly, and I want to see longer trains with more capacity for passengers. All of us who travel on CrossCountry trains from time to time know that they are too short for the loads they carry, and we need to find a way of sorting that out.
Alex Chalk (Cheltenham) (Con)
I echo the concerns about CrossCountry trains. Even outside of peak services, cramped trains are increasingly the norm for my constituents, who are jam-packed into vestibules, and that comes on top of delays and cancellations. Does my right hon. Friend agree that CrossCountry needs to raise its game?
Chris Grayling
I do agree. This is a question, as it is across the country, of ensuring that we have longer trains for the future. That is central to our strategy and is what the private sector is delivering for our railways, and it needs to happen on CrossCountry trains as well.
Jo Stevens (Cardiff Central) (Lab)
On funding, Cardiff Central station—the busiest in Wales—is in urgent need of redevelopment to accommodate expected passenger growth of 22 million in the next five years. This week, our Labour council and the Welsh Labour Government announced their funding contributions and the private sector funding, but the project can go ahead only if there is UK Government funding, too. When will the funding be confirmed?
Chris Grayling
The important thing about Cardiff Central station is that there is huge development taking place around the station. I have met the developers and local politicians, and I want to see there what I want in other parts of the rail network, which is a real integration of station development with commercial development. That should be an absolutely integral part of what is happening all around the station, not just in the station project in its own right, and that is what I want to happen.
Rehman Chishti (Gillingham and Rainham) (Con)
Tim Loughton (East Worthing and Shoreham) (Con)
The Secretary of State for Transport (Chris Grayling)
My hon. Friend knows full well that I absolutely understand the difficulties that his constituents have faced. I hope he will accept that performance has improved over the past year, since the height of industrial action. We have had compensation arrangements in place, including the special compensation for past disruption, which saw £13.6 million paid to 58,000 passengers. We have also taken steps forward on the ways to implement Delay Repay and will keep the situation under review.
Tim Loughton
On 2 December 2016, the Secretary of State said in a written statement:
“Southern passengers have suffered from unprecedented and sustained disruption to their journeys during 2016”,
and offered some very welcome compensation for season ticket holders. The problem is that Southern passengers suffered from unprecedented and sustained disruptions to their journeys during 2017 as well. In fact, the punctuality figures for the most recent quarter are even worse. When are my constituents going to be compensated this year?
Chris Grayling
As I said, additional compensation measures are in place now. The issues that network currently faces are all to do with the condition of the infrastructure. My hon. Friend will know that we have just announced two major closures to allow upgrade works to take place, and there is a substantial ongoing programme of investment in that route, which I hope will make a significant difference.
Mohammad Yasin (Bedford) (Lab)
Bedford commuters will lose their fast peak train services in May. Many now do not know how they will balance work with their childcare arrangements. Does the Minister agree that Stagecoach should compensate these people and rail users who, by the Government’s admission, have borne the pain of the changes to the rail network timetable?
Chris Grayling
I cannot promise—I wish I could—no change and no disruption as a result of major investment programmes. The hon. Gentleman will know that the combination of the upgrade to the midland main line and the Thameslink programme must mean, for an interim period, changes to services. There will in fact be more seats from Bedford in peak hours. Of course, many of the east midlands trains arriving at Bedford are already full, so I absolutely regret the fact that we have to inconvenience passengers, but we cannot upgrade and improve the network without taking some difficult decisions.
Liz McInnes (Heywood and Middleton) (Lab)
Patrick Grady (Glasgow North) (SNP)
The Secretary of State for Transport (Chris Grayling)
The Civil Aviation Authority keeps such matters under constant review and has today announced that it will be issuing class 1 medical certificates with a restriction to applicants wishing to become commercial pilots where this is required for safety purposes.
Patrick Grady
The Secretary of State will be aware of the case of my constituent who has been denied his commercial pilot’s licence on the ground that he is HIV-positive. I am not entirely sure what the Minister’s answer means, but I hope it means that he will meet the CAA and the European Aviation Safety Agency very soon to stop them passing the buck, and let this pilot fly.
Chris Grayling
To reassure the hon. Gentleman, my answer means that today the rules are being changed, and while I cannot give a certain outcome to an individual case, people who suffer from conditions that have made it difficult for them to become commercial pilots will find it easier to become commercial pilots, as the CAA takes—I think—a more sensible approach to this matter.
Priti Patel (Witham) (Con)
The Secretary of State for Transport (Chris Grayling)
I echo the comments of the hon. Member for Nottingham South (Lilian Greenwood) about the emergency services’ response last week. I pay tribute to all those who carried out works across the rail network over Christmas, giving up their Christmas holiday period for the investment programme.
I am proud to be from a party of opportunity. We are a party of opportunity that provided this country with its first woman Prime Minister. Today, we are the party that provides the first Muslim woman Minister to speak from the Government Dispatch Box—my hon. Friend the Member for Wealden (Ms Ghani). I congratulate her, and I am very proud to sit alongside her today.
Priti Patel
The Secretary of State will be aware that Essex adds over £35 billion to the economy; but our businesses that want to grow cannot grow, because of poor transport infrastructure. Will my right hon. Friend help those businesses by committing to back key projects such as the rail loop north of Witham, investment in the A12 and investment in the A120?
Chris Grayling
I absolutely understand the importance that my right hon. Friend places on transport links in Essex, which is why we are investing both in the county and across the country. Highways England is progressing the A12 improvements, which are now going through the consultation and design stages. On the railways, a number of improvements are required to the eastern main line, and the rail loop is one of those under consideration.
Judith Cummins (Bradford South) (Lab)
John Grogan (Keighley) (Lab)
Chris Grayling
There has been absolutely no change to any part of the terms of that franchise; as of today, there is absolutely no change. It is business as usual. I have set out in this House the challenges, but as of today, to be clear, nothing has changed—neither the service specification nor the contracts for franchise.
Mr Philip Hollobone (Kettering) (Con)
Will the rail Minister be kind enough to agree to meet the Kettering rail users group to discuss how rail services might be improved to and from Kettering?
Ronnie Cowan (Inverclyde) (SNP)
Chris Grayling
I absolutely understand the importance for the future of our maritime sector—of shipping goods by sea. Indeed, I recently had the pleasure of visiting Montrose port to see the important work that it does for the east of Scotland. I can assure the hon. Gentleman that the maritime sector, while often not the highest-profile sector in these questions, is enormously important to this country.
Luke Graham (Ochil and South Perthshire) (Con)
While many of us were enjoying our Christmas lunches, an army of Network Rail engineers were working hard making improvements and repairs across the country. Will the Secretary of State join me in congratulating them on their hard work and thanking them for it?
Chris Grayling
We often fail to appreciate the hidden army of people who support our transport system. Those who turned out over the Christmas period—with some extraordinary work was done—deserve all of our thanks. Whether it is the improvements in the north-west, the expansion of Liverpool Lime Street that has taken place over recent months or the extraordinary work at London Bridge, north and south we are seeing huge investment programmes that will make a difference to the passenger experience.
Sandy Martin (Ipswich) (Lab)
Neil Gray (Airdrie and Shotts) (SNP)
Chris Grayling
Since my appointment, in recent months I have had regular meetings with the US airlines and the US Federal Aviation Administration, and I have met and discussed these issues with my counterpart in the US Department of Transportation. We are making good progress with our successor arrangements for aviation after we have left the European Union.
Justine Greening (Putney) (Con)
On what evidence are the Government now pushing ahead with what I believe to be a flawed plan for expanding Heathrow? The updated national policy statement shows that it is more expensive, lower value, more congesting, noisier, and provides fewer connections. Will the Secretary of State meet me to discuss this?
Chris Grayling
I know how strongly my right hon. Friend feels about this. She and I have had many conversations about it and I know that we will carry on doing so. She and I, of course, do not share the same view—I believe that this project is strategically important for the United Kingdom—but I am happy to carry on discussing it with her.
Stephen Lloyd (Eastbourne) (LD)
Chris Grayling
The hon. Gentleman will know that his predecessor secured from me a commitment to allow the local authority to use funding allocated for the improvements to the A27 to review what the best options are east of Lewes. I wait to see the response of that work.
Jack Brereton (Stoke-on-Trent South) (Con)
With the initial consultation currently open on “Shaping the Future of England’s Strategic Roads”, will the Minister confirm that the Secretary of State will look closely at the vital upgrade of junction 15 of the M6, serving Stoke-on-Trent?
Christine Jardine (Edinburgh West) (LD)
Chris Grayling
We have two jobs to do for aviation post-Brexit. One is to conclude negotiations within the European Union, which will be part of the ongoing process of negotiating our successor arrangements, and the other is to negotiate successor agreements around the world. We are working on both those things right now.
John Penrose (Weston-super-Mare) (Con)
On the east coast main line, rather than taking us back to the bad old days of British Rail, as the Labour party’s renationalisation proposals would do, will the Secretary of State instead consider the Competition and Markets Authority’s recommendations for more on-track open access choice and competition, with the far better quality and cost of rail services that it says would result?
Chris Grayling
There is no doubt that open access makes a difference. I do not think for a moment that those who, for example, live in Sunderland, Middlesbrough or Bradford and have services from Grand Central would say anything other than that open access has been a good thing. That is the area in which the private sector has really made a difference, bringing services to the network that never existed in the days of nationalisation.
Jessica Morden (Newport East) (Lab)
With the Severn bridges at long last coming into public ownership on 8 January, will the Minister meet me to discuss the future operation of the bridges, including abolishing the tolls following the long local campaign?
Dame Cheryl Gillan (Chesham and Amersham) (Con)
At a recent meeting with senior HS2 personnel, they promised to provide all MPs along the route of HS2 with advance notice of construction works in their constituencies. They have not done this. Will the Secretary of State ensure that they keep their promises?
Chris Grayling
I absolutely will—no question. I expect HS2 to be good corporate citizens as it embarks on this huge construction project. If there are examples of its failing to do so, I invite all Members to come to me and the Under-Secretary of State for Transport, my hon. Friend the Member for Wealden (Ms Ghani), who will be leading within my team on HS2. We will want to make sure that, where it is humanly possible to do so, we do the right thing by all those on the route.
Dan Jarvis (Barnsley Central) (Lab)
What progress is being made on delivering bus franchising powers for elected Mayors?
Sir Patrick McLoughlin (Derbyshire Dales) (Con)
When can we expect a decision on the Transport and Works Act order application for the improvement of the Hope Valley line? The public inquiry was in May 2016 and it reported in November 2016, but so far the Department has been unable to say when we will get a decision.
Chris Grayling
I will seek to gee things along. The Hope Valley line, as my right hon. Friend will know, is one part of the package of proposals—some new lines, some upgraded lines—that Transport for the North has brought forward for the northern powerhouse rail. I will seek to make sure that that process is concluded as quickly as possible.
Nic Dakin (Scunthorpe) (Lab)
Will the Government work with businesses that supply renewable fuels to see what impact the renewable transport fuel obligation has on them, and will they continue to look to develop E10?
Kevin Brennan (Cardiff West) (Lab)
Has the Secretary of State had a chance to look at early-day motion 775 about taking musical instruments on to aeroplanes? In his coming discussions on aviation, will he take the opportunity to meet the Culture Secretary to talk about how we might solve this real problem for musicians?
Chris Grayling
An airline’s hand luggage policy is obviously a matter for the airline, but I am very happy to have a discussion with the hon. Gentleman about the issue. There may not be a simple solution, but I am always happy to talk to hon. Members about the challenges they face.
Bob Blackman (Harrow East) (Con)
I congratulate my hon. Friend the Member for Wealden (Ms Ghani) on her appointment. Following her review of station accessibility, will she look carefully at the hundreds of applications from residents in my constituency for improvements at Stanmore and Canons Park stations which have not been provided by Transport for London, but will I hope be provided by the Government?
Chris Elmore (Ogmore) (Lab)
The Minister may be aware that the level crossing in Pencoed in my constituency will now not be improved because of the cancellation of electrification, and that is causing access issues and considerable safety concerns. I made this request to the previous Minister, so will the new Minister now meet me, and a representative of Pencoed Town Council, to start the process of closing that level crossing and improving the highways around Pencoed?
Chris Grayling
Decisions on electrification do not and will not in any way impede safety improvements. We have announced a large amount of money over the next five years, and I am happy to see what we can do to move this issue on rapidly.
Mr Speaker
A very short question is required so, of course, I look in the direction of the right hon. Member for New Forest West (Sir Desmond Swayne).
Paul Blomfield (Sheffield Central) (Lab)
The environmental impact assessment of the Government’s decision not to electrify the Midland main line north of Kettering has revealed that 25 times more savings in carbon emissions would have been achieved with that electrification. If the Government are serious about their new commitment to the environment, will they think again about that decision?
Chris Grayling
I expect to see a transformation of technology on our railways over the coming years, with the introduction of different types of battery electric hybrid trains and hydrogen trains, and I see that as a priority. I want the first hydrogen train to operate on our rail network within a short period of time.