Rail Infrastructure Funding 2019 - 2024

Lord Grayling Excerpts

Thursday 12th October 2017 Written Statements

[The Secretary of State for Transport (Chris Grayling)]

I am today publishing my final statement of funds available for the railway in England and Wales for control period 6, which covers the years 2019 to 2024. This follows my publication of a high level output specification and initial statement of funds available on 20 July.

The high level output specification made clear that the Government are determined that the railway becomes more focused on issues that matter most to passengers—such as punctuality and reliability. It therefore focused on the operation, maintenance and renewal of the railway—areas which are crucial to delivering a more reliable railway. At the time of its publication, the Government deferred publication of a final statement of funds available, following more work to establish Network Rail’s costs and the scope for efficiency savings across control period 6.

This work has now concluded. On the basis of further work by Network Rail, of continued scrutiny by the Office of Rail and Road (ORR)—including through its independent reporter, Nichols—and through work by my Department and HM Treasury to challenge costings, Government are now in a position to set out their funding envelope for control period 6.

At this stage we expect around £47.9 billion to be spent on the railway across control period 6. Of this, we expect up to £34.7 billion to be provided directly via Government grant, with the remainder coming from a combination of track access charges and income from other sources, such as Network Rail’s property portfolio. These amounts will be refined during the regulatory process, which will produce by summer 2018 detailed draft amounts for the 2019 to 2024 period for consultation. Budgets will be set at route level, as part of the devolution of more accountability and authority to Network Rail routes, driving change in the organisation. The regulatory process will conclude with a final determination in October 2018.

During this process I expect the regulator to provide a strong efficiency challenge to maximise value for money, and the ORR has substantially changed its regulatory approach to help achieve this.

We have some of the most intensively used railways in Europe, and this investment focuses on the essential work needed to ensure their safety and reliability, including funding to support a significant increase in renewals activity compared to the current period, and increased maintenance spend to allow Network Rail to meet the challenges of a busier network. This investment recognises the critical importance of these activities in preserving the day to day operation of the railway.

I believe that a renewed focus on core railway activities will help return train performance to the levels that passengers expect and deserve. Overall, this significant funding demonstrates Government’s continued commitment to investing in the railway for the benefit of passengers, communities, the supply chain and the wider economy.

The Government have already made clear that they expect new enhancements to the rail network to be developed outside of the regulatory system. However, the statement of funds available published today includes funding to continue to take forward the enhancements that were deferred from control period 5. In line with the new process for enhancements these schemes will continue to be subject to ongoing consideration to ensure they deliver the best results for both rail users and taxpayers. In addition to this, I am making funding available for the early-stage development of new enhancement schemes. I will announce further details on a new process for taking forward enhancements later in the year. We need to ensure investment best addresses the needs of passengers and freight, and that funding commitments appropriately reflect the stage of development of those enhancements.

Furthermore, the statement of funds available also includes funding for continued investment in improvements to both the accessibility of the railway and the rail freight network. Our commitment to funding accessibility improvements in the railway further emphasises our drive to ensure that the railway is accessible to all. The Government have recognised the crucial role that rail freight plays in supporting the economy and the environment and our continued investment in the freight network recognises this.

Given the need to spend public money wisely and to incentivise the industry to do so, I believe the funding envelope published today is stretching yet achievable. I will continue to push Network Rail to improve its effectiveness and efficiency. In particular I support an ambitious approach to route devolution, so that Network Rail is more focused on its customers. I will also modernise the Government’s oversight and assurance arrangements for Network Rail to properly reflect its public sector status. I have taken steps to ensure that this money is spent more effectively and that the problems with cost and delivery which occurred during control period 5 are not repeated. I will also continue to drive improvement across the wider industry, including the franchising system. I will update this House further on my plans for wider rail strategy in the near future. I am arranging for copies of the statement of funds available to be placed in the Libraries of the House.

The statement of funds available can be viewed online at:

http://www.parliament.uk/business/publications/written-questions-answers-statements/written-statement/Commons/2017-10-12/HCWS160/ .

[HCWS160]

Monarch Airlines

Lord Grayling Excerpts

Monday 9th October 2017 Commons Chamber

[The Secretary of State for Transport (Chris Grayling)]

With your permission, Mr Speaker, I would like to make a statement about the steps the Government have been taking to support those affected by the collapse of Monarch Airlines, in particular the 110,000 passengers left abroad without a flight back to the UK and the almost 2,000 people who have lost their jobs.

This situation is highly regrettable and all parties considered options to avoid the collapse of the company. Ultimately, however, Monarch’s board took the decision to place it into administration and it ceased trading at around 4 am on Monday 2 October. The engineering arm of the group remains a viable business and continues to trade. Ahead of the collapse, my Department had been working closely with the Civil Aviation Authority and several Departments across Whitehall to prepare contingency plans, and the response since last week has been swift and substantial.

To put the situation into context, this operation is the largest of its kind ever undertaken. The CAA has essentially set up one of the UK’s largest airlines to conduct it. Let me give Members a sense of the scale. We have put arrangements in place to bring back 110,000 people to the UK, with 700 flights over a two-week period. We have had a maximum of 35 aircraft in operation at any one time. The CAA is working to secure planes from 27 different airlines. More than 200 CAA staff are working on the project with thousands more in partner organisations taking part. There are 40 airports involved in the UK, around the Mediterranean and beyond. That has required 267 coaches carrying more than 13,000 passengers, and so far there have been more than 39,000 calls to our customer service centres, all swiftly answered by more than 250 call centre staff. There have been more than 1 million unique visitors to a dedicated website— monarch.caa.co.uk—and 7 million page views. Furthermore, more than 1 million people have been reached through our Facebook promotion. Ten Government Departments and agencies have been involved, including the Foreign and Commonwealth Office in London and our extensive diplomatic and consular network in the affected countries.

I have seen at first hand the work being done across Government and the CAA to make this operation a success. I have spoken to some of the passengers who have returned to the UK on Government flights. I have been hugely impressed by what I have seen, and we have had a very strong, supportive response from the passengers affected, many of whom deservedly praised the CAA and all the Departments involved in this enormous operation.

Normally, the CAA’s responsibility for bringing passengers back would extend only to customers whose trips are covered by the air travel organisers’ licence scheme, but this is the largest airline failure in UK history and there would have been insufficient capacity in the commercial aviation market to enable passengers to get home on other airlines. The danger was that tens of thousands of passengers abroad would have no easy means of returning to the UK. That is why I instructed the CAA to ensure that all those abroad were offered an alternative flight home. As of last night, around 80,000 passengers had returned to the UK; that is almost three quarters of the total number who were abroad at the time of the collapse. We have had teams of Government officials at overseas airports providing advice and assistance to passengers.

Despite those robust plans and the smoothness of the operation so far, the situation is hugely distressing for all concerned. Obviously, it has been a priority to get people back to the UK, and our hearts go out to those who have lost bookings as a result of the collapse, but in addition to supporting passengers we have been focused on working to ensure that the almost 2,000 former Monarch employees receive the support they need. I am pleased to report that airlines have already directly appealed to those former employees. For example, Virgin Atlantic is offering a fast-track recruitment process for cabin crew and pilots, and easyJet has invited applications for 500 cabin crew vacancies. I and members of my team spoke to the airlines when it became clear what was happening to try to secure their help in getting those opportunities for staff, and I am pleased to see that coming to fruition. easyJet is also calling for direct-entry captains or first officers who meet captain qualifications.

All former Monarch employees will have received information from Jobcentre Plus outlining the support available to them. In total, Jobcentre Plus has pulled together a list of more than 6,300 vacancies across the major UK-based airlines—that is more than three times the number of people being made redundant—which I hope will help those former employees to remain in the airline business. The Minister with responsibility for aviation has been in contact with Members whose constituencies have been hardest hit by these job losses. They have our assurance that we will work with them and the industry to offer what support we can.

I am also aware of the Government’s duty to the taxpayer. Although affected passengers have been told they will not have to pay to be flown back to the UK, we have entered into discussions with several third parties with the aim of recovering the costs of the operation. The ATOL scheme of course provides financial cover for those with ATOL protection. We are currently engaged in constructive discussions with the relevant credit and debit card providers so that we can recoup from them some of the cost to taxpayers of the repatriation flights. We are having similar discussions with other travel providers through which passengers may have booked a Monarch holiday, and I thank all those with whom we have held discussions for their constructive and realistic approach.

The initial response to this unprecedented situation would not have been so successful without the support and co-operation of many players. I am sure we would all say that the loss of a major British brand that was close to celebrating its half-century is a really sad moment. However, it should not be seen as a reflection on the general health of the UK aviation sector, which continues to thrive. We have never had the collapse of an airline or holiday company on this scale before, and we have responded swiftly and decisively.

Of course, right now our efforts are rightly focused on getting employees into new jobs and getting passengers home. After that, our effort will turn to working through any reforms necessary to ensure that passengers do not find themselves in this position again. We need to look at all the options—not just ATOL, but whether it is possible to enable airlines to wind down in an orderly manner and look after their customers themselves, without the need for the Government to step in. We will be putting a lot of effort into that in the months ahead. Our prime task has been to get people home, and I am immensely grateful to all who have taken part in what has proved, so far, to be a smooth and successful operation.

[Andy McDonald (Middlesbrough) (Lab)]

I thank the Secretary of State for advance sight of his statement.

Britain’s fifth largest airline, Monarch, collapsed because of a litany of failures by the Government, the regulator and the company’s financial backers and advisers. Its demise must also be seen in the context of a ferociously competitive aviation sector, which is adjusting to major overcapacity problems and the loss of services because of terrorism. A further backdrop to the industry is the foggy skies of Brexit, and the total lack of certainty from this Government for the British aviation industry after March 2019.

The airline’s bankruptcy has left huge losses on the shoulders of the public, rather than of the parent company or the regulator. It is the staff, customers, the taxpayer and pensioners who will pay the price. Creditor bills include the £60 million paid by the Government to repatriate holidaymakers, not forgetting the £26 million paid last year when Monarch previously came close to collapse; the £7.5 million to the Pension Protection Fund; the 45 days’ pay owed to the 2,000 staff who were made redundant; and the ticket refunds for the 750,000 outstanding bookings at the time of the collapse.

Why did the Government not do more to support Monarch and ensure that the company was viable, if only for the short term? The German Government recently stepped in to assist Air Berlin and the Italian Government have supported Alitalia. At the very least, an orderly wind-down of the airline would have been preferable to sudden administration.

Monarch is reported to have had £50 million in the bank. Why was the airline not granted a short-term ATOL licence extension, which would have allowed it to continue trading and at least bring its passengers back? Who decided not to grant Monarch an ATOL licence extension? More time would have allowed Monarch to be sold in parts. For example, Monarch’s landing slots are reported to be worth £60 million. Such assets could have been realised in an orderly wind-down. Instead, moneys from the sale of these assets will go to the secured creditor and former owner Greybull Capital, while the public purse gets nothing.

The statutory role of the CAA is to provide choice and value for money for passengers. British consumers now have one less airline to choose from. On its watch, there has been a surge in the cost of UK air fares following Ryanair’s cancellation of flights last month. Monarch’s demise will only push up flight costs further. There is an estimated £200 million in the CAA-administered ATOL compensation fund, yet it only covers about one in 20 of Monarch’s customers. Why is the public purse paying while the outdated ATOL pot sits largely untouched? Monarch Airlines continued to sell flights until Sunday 1 October, even though the airline knew it was going into administration the following day. Why did the CAA not act to stop that?

Greybull Capital’s takeover of Monarch in 2014 was the beginning of the end for the airline. Greybull is a private investment firm that has already presided over the collapse of My Local convenience stores and Comet, among others. Serious questions must now be asked about the conduct of firms such as Greybull, the way they invest and their wider stewardship.

A report in yesterday’s edition of The Sunday Times suggested that the £165 million rescue package for Monarch last year was largely funded by Boeing, as part of a cut-price deal for an order of 737 aircraft. What is the Secretary of State’s assessment of the role of Boeing in the financial engineering of Monarch? The Prime Minister recently criticised the conduct of Boeing against Bombardier in Belfast, in support of her Democratic Unionist party allies. Why is there no criticism of Boeing’s role in the loss of 2,000 jobs in Luton?

The role of KPMG must also be called into question. The firm was appointed to seek buyers for Monarch’s short-haul business prior to its collapse. It was actively doing so. Why is the same firm now acting as Monarch’s administrator? Does the Secretary of State agree with me that that is a glaring conflict of interest?

Finally, the way in which Monarch met its demise should set alarm bells ringing, so will the Secretary of State confirm that there will be a full investigation into the concerns that have been raised?

[Chris Grayling]

I am sorry the hon. Gentleman did not have a good word to say for all the efforts put in place to bring people back. I would just remind him that, interestingly, in 2008—the last time we had an aviation failure in this country, Excel Airways—the Labour Government followed a very similar path to the one we have followed, with taxpayer-funded repatriation. They did the right thing then, and we are doing the right thing now. I am simply sorry that Labour Members have forgotten that they did the right thing in government, and cannot now say that our doing the right thing this time is indeed the right thing to do. [Interruption.] They did the right thing then, and we are doing the right thing now, and I am just sorry that he could not say a good word about those involved.

The hon. Gentleman talked about the reasons for the collapse. First, this is not an issue about Brexit. The airline had been struggling for three years, and the first concerns were raised about it long before the referendum was even held.

I had hoped that this summer, after the rescue package last year, the airline would see its way through. As its chief executive said, it has been a victim of the anxieties about tourism in the east Mediterranean for security reasons. Those have led to a concentration of business in the west Mediterranean and the traditional resorts of Spain and Portugal and a price war from which the company was ill equipped to recover. That is what has happened, no more no less.

The hon. Gentleman asked about the licence, and there was no issue about its renewal. What happened was never about the renewal of the licence—the business had simply reached the end of the road. Its board came to the conclusion that it could not carry on.

The hon. Gentleman asked why the company carried on selling tickets the day before. The reality is that any airline that runs into difficulties will carry on selling tickets until it can no longer do so. The moment it stops doing so, it collapses, and that is what happened. It would happen any time an airline ran into such difficulties. There is no other way to do it. The moment it stops selling tickets, it stops doing business, and that is precisely what happened.

The hon. Gentleman talked about competition, and other airlines are already stepping into the breach. Jet2, one of our fast-growing, emerging airlines, has already said that it will step in and run some of the routes. That is what a market does. If one business fails, others step in. The tragedy of the Labour party in the last few years is that it has moved away from understanding markets to being utterly hostile to markets and the private sector.

We have a thriving aviation sector with competition between airlines delivering a good deal for consumers, and occasionally—once under a Labour Government and once under ours—something has gone wrong. In both of those situations, the Government of the day stepped in to try to make sure that we looked after the travelling public. I have no doubt that if it ever happens again, someone will do the same.

We do have to learn the lessons. We have to understand whether we can make sensible changes to the laws to ensure that this does not happen again. We are already legislating to extend the ATOL scheme to provide better protection for people who book over the internet in a different way from how they have in the past. I am clear that the job of the Government is to look after the travelling public and step in when things go wrong. We have done that, and we are seeking to get back as much money as possible, as Labour did in 2008. Above all, our job is to do our best for the travelling public and the employees. That is what we are doing. I am proud of what we are doing, and I am just disappointed that the Opposition cannot even say well done to the people who have worked so hard in support.

[Crispin Blunt (Reigate) (Con)]

The chief executive of Monarch has attributed the principal reason for the demise of the airline to terrorism and the resulting flight bans to both Tunisia and Sharm El Sheikh. Can the Secretary of State give his assessment of the merits of that argument?

[Chris Grayling]

There is no doubt that that was a significant factor, and not only because of changes in consumer patterns. Many other airlines chose to concentrate their resources this summer in the traditional resorts of Spain and Portugal. Alicante airport and others were full of planes this summer, and Monarch got squeezed out in a price war for which it was not financially strong enough. Ironically, it carried more passengers than two years ago, but with far lower revenues, and that more than anything else is what has caused its demise. It is a consequence of the security situation and of people taking a cautious approach to their holidays.

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

The sad fate of Monarch Airlines is a stark example of the realities of Brexit beginning to bite. There is no denying that the fall in the pound has led to significant increases in the operating costs for the airline over the past year. The weak pound has also affected consumers and led to a drop in bookings. Add to that the uncertainties over the future of British carriers in Europe that served as a significant deterrent for any potential buyer who might otherwise have been found, and Monarch’s fate was sealed. Does the Secretary of State agree that as long as uncertainties over Brexit continue there is a danger of similar high-profile collapses?

Can the Secretary of State say with certainty today that the rights of UK passengers will not be eroded or diluted after Brexit? Will he confirm that the Government will work with administrators and the unions to ensure that employee rights are fully respected during the process, and that—where applicable—compensation is made available in a timely manner, in view of the fact that the manner of the administration raises real concerns about employee rights?

[Chris Grayling]

I am really sorry the hon. Lady has taken that approach. Let me be absolutely clear: this airline did not fail because of Brexit; this airline failed because it had a business model that was not capable of dealing with a price war in the Mediterranean. That is the reality of the situation and that is what its chief executive said. The hon. Lady talks about Brexit causing a lack of investment, but in the past few weeks we have seen a big expansion. Jet2 has set up a new base at Stansted and there has been a huge investment in the UK by Norwegian, which is becoming a real player in the low-cost marketplace. The market is changing and sadly Monarch, a business that has been around for 50 years, was not able to adapt to those changes. I am afraid she is just doing a disservice to the economy of the United Kingdom when she claims that this was a consequence of Brexit. She talks about employees. The biggest favour we can do for the employees of Monarch is to work to ensure they get another job quickly, and that is what we are seeking to do.

[Ms Esther McVey (Tatton) (Con)]

Following on from the many letters I have received from constituents, will the Secretary of State join me in thanking and congratulating the staff of the CAA, the Department for Transport and my local airport, Manchester airport, on the work they have done on the biggest evacuation in peacetime?

[Chris Grayling]

I am very happy to do that. I pay tribute to the staff of Manchester airport—I met the first plane back at Manchester airport—who rowed in behind the challenge. They were notified only late on the previous day, but by Monday morning staff were out greeting passengers, telling them what had happened and sorting out all the issues arising from the administration. I owe a big debt of gratitude to the staff of Manchester airport, Gatwick airport, Birmingham airport, Luton airport and Leeds Bradford airport, all of whom rose to the occasion, and to all the other people and organisations involved in the exercise.

[Lilian Greenwood (Nottingham South) (Lab)]

In 2014, the CAA recognised the fragility of Monarch’s finances and insisted on ATOL protection of flight-only bookings, but that requirement was dropped in December 2016. Monarch’s administrators cite cost pressures and increasingly competitive market conditions as contributors to its collapse. Given that the fall in the value of the pound and the loss of tourism in Egypt and Tunisia predate that decision, passengers will rightly ask why the requirement for ATOL protection was removed. Will the Secretary of State explain the process for deciding to drop ATOL protection of flights, the Department’s part in that decision, and how much the decision will ultimately cost UK taxpayers?

[Chris Grayling]

The ATOL scheme counts as public expenditure whatever happens. The impact on public finances, whether or not this was covered entirely by the ATOL scheme, remains the same because of how Government accounting works. I take advice from the CAA on the steps we need to take. Last year, Monarch had a big injection of cash, and in the first part of this year it looked like things were back on the straight and narrow. What changed this summer was the price war, which undermined the company’s revenues and led to a position where its losses were mounting week by week. That was the real issue. I have no doubt that the hon. Lady and her Committee will want to deal with these matters in greater detail, and I look forward to talking to her. She has every right to scrutinise what we have done. We sought to do our best for the travelling public and to take the decisions we were advised to take at the right time.

[Anna Soubry (Broxtowe) (Con)]

As a former Business Minister before the EU referendum, and apparently as one of the chief “remoaners”, may I make it absolutely clear that the unfortunate demise of Monarch has absolutely nothing to do with Brexit? Those who seek to make it an issue based on Brexit do not do anybody any favours. I commend the Secretary of State not only for his statement but for his hard work and that of his Ministers in doing their utmost to bring everybody back to this country. Will he confirm that Transport Ministers and Business Ministers have been doing their absolute best for Monarch for years? Will he continue to work with Foreign and Commonwealth Office Ministers to look at how we can open up airports, such as Sharm El Sheik and those in Tunisia, to support the rest of our aviation industry?

[Chris Grayling]

I am very grateful to my right hon. Friend for her words. She is absolutely right. This is a sad tale of an airline that has been struggling for years. A lot of effort has been put in by many people to try to keep it afloat. It is a real disappointment that they were not able to succeed. She is absolutely right about the Brexit issue. If we want another example, it is only a few weeks since Air France and KLM spent hundreds of millions of pounds on a stake in Virgin Atlantic. Those are not the actions of commercial organisations that believe that Brexit is destroying the British aviation sector. Those who suggest it are simply talking down our country and that is not acceptable. I am therefore very grateful to her for what she says. She is absolutely right. I give her an assurance that the Government will do everything we can to support the sector, to support the people who lost out as a result of Monarch’s collapse, and to continue to ensure we have a strong sector for the future.

[Kelvin Hopkins (Luton North) (Lab)]

As the MP for Luton North, I represent many of those who have lost their jobs, and I have to say that, had the company been in public ownership—with proper transparency and accountability to Parliament—I suspect that this would not have happened. [Interruption.]

[Kelvin Hopkins]

My concern is that, when the company collapsed, the assets had almost all disappeared, so there was very little financial value in the assets of the company. Was this to benefit shareholders and owners, and how much money has the state effectively paid out that the owners and shareholders should have been accountable for?

[Chris Grayling]

The hon. Gentleman is right that the airline did not have the assets at the end—airlines today do not own their planes but lease them. One reason it is difficult to continue to operate an airline like this is that the planes are the property of the lease companies, which take them back immediately afterwards. We clearly have to look at whether there is a better way of doing things, but it is not easy.

It would be relatively easy for an airline abroad that is owed money simply to impound an airliner and make it impossible for us to get people back, so these are not straightforward issues. But is the hon. Gentleman really suggesting that we go back to a time when the state owned everything? Do we want the state to own British Airways, easyJet, Jet2 and Thomas Cook? It is nonsense. Even the most socialist Labour Government of the past would never have suggested that the state own every holiday airline. It is a sign of how extreme its policies have become that anybody on its Benches can seriously suggest it.

[Nigel Huddleston (Mid Worcestershire) (Con)]

I congratulate the Government on the speedy response to the Monarch situation and on highlighting the resilience of the UK aviation industry—in the private sector—but the Secretary of State will be aware that there has been confusion over who is ATOL protected. Does he agree that more could be done to communicate the benefits of ATOL membership?

[Chris Grayling]

This is definitely one area we need to look at again. We are already legislating to ensure that people who pay for a flight and hotel separately through an internet organisation can be covered through ATOL insurance. This is an area where we have to do more work. There is, however, a fundamental issue: if we were to put a levy on the cost of an air ticket, we would have to do it on every air ticket in the UK, but many of us on the Conservative Benches get regular representations from regional airports, for example, saying they want air passenger duty cut. This would increase APD, and that is why it is not a straightforward decision, but one we must consider very carefully.

[Graham Stringer (Blackley and Broughton) (Lab)]

I agree with the Secretary of State that in future situations like this one the Government should look for an orderly wind down, but is that not pie in the sky given the evidence of a conspiracy between Greybull and Boeing to protect their own capital interests against the pension rights of former employees and the people who bought tickets when it was already clear that the airline was bankrupt?

--- Later in debate ---

[Chris Grayling]

The hon. Gentleman should remember that the pension scheme was transferred to the Pension Protection Fund in 2014, when it was sold by the Swiss family that had owned the business since the 1960s, so it is not straightforward to talk about pension rights now. He should not second guess any details of how, why or where the financing package was secured a year ago. It is a matter of record that it involved rescheduling or reorganising the leasing of the aircraft, but had it been able to secure the future of the airline, as we all hoped at the time, we would all be grateful it had happened. It is tragic that that was not the case.

[Mary Robinson (Cheadle) (Con)]

Almost 500 Monarch staff are based at Manchester airport, and many are my constituents, so I am grateful to hear the assurances that the Government will work with the industry to support staff back into work. Will the Secretary of State outline what more support will be given to our regional jobcentres to assist my constituents who have lost their Monarch jobs?

[Chris Grayling]

Before it became clear that the collapse was happening, we had pre-meetings across Whitehall between the Departments that needed to be involved, including the Department for Work and Pensions, and Jobcentre Plus has been working with all those affected. That work will continue where necessary. I am glad that if such terribly difficult circumstances had to arise, they arose in a thriving sector with lots of job opportunities. The fact that Jobcentre Plus was able quickly to identify more than 6,000 vacancies for 1,700 people looking for jobs is a good step in the right direction and a tribute to the success of that sector, off the back of what has been a successful economy in recent years.

[Ian Austin (Dudley North) (Lab)]

Four hundred employees, including skilled engineering workers, are set to lose their jobs at Birmingham airport,. The region can ill afford to lose those skills and the contribution that they make to the regional economy. Will the Secretary of State ensure that his Department redoubles its efforts, and does everything possible to ensure that those people can find equally skilled work elsewhere in the region as soon as possible?

[Chris Grayling]

I absolutely give the hon. Gentleman that assurance. Securing strong futures for those people has been, is and will remain a priority for us, along with getting the passengers back. As I have said, however, I am encouraged by the number of other airlines that are actively seeking to recruit. As slots become vacant at Birmingham, Luton, Gatwick, Leeds and Manchester, other airlines are already seeking to move in and take those slots, and they will need staff to work on the business as they arrive.

[Bim Afolami (Hitchin and Harpenden) (Con)]

Will the Secretary of State give further details of what the Government are doing to assist former employees of Monarch Airlines who have lost their jobs as a result of the airline’s collapse?

[Chris Grayling]

We have had a very early promise on a lot of things. A few hours before the administration came into effect, I spoke to the chief executive of easyJet, who was very helpful. I should express thanks to easyJet for helping us with some problematic routes; for instance, only specialised pilots can fly into or out of Funchal airport.

The chief executive gave me an assurance, and easyJet has given us assurances subsequently, that the airline will hire a substantial proportion of those staff. It is likely to hire 500 very quickly to meet its future demands, because its business is growing rapidly, and I know that other airlines plan to step in and do the same. Jobcentre Plus has already been holding job fairs and airlines have already been going through recruitment exercises, so it is my hope that all those affected will find jobs quickly.

[Laura Smith (Crewe and Nantwich) (Lab)]

The Secretary of State emphasised that Monarch passengers abroad would be covered until 15 October, but constituents of mine who are due to return on 16 October are worried because there is no information available online. Will the Secretary of State please let me know where they can obtain information, and whether their return is protected or not?

[Chris Grayling]

The full repatriation exercise lasts for two weeks, and at the end of that time there will be a very small number of people left abroad. We know that, at that point, the sector as a whole will be able to absorb those passengers; it could not have done so a week ago, given the numbers involved. The Civil Aviation Authority will be contacting those people this week and keep its helpline available for a considerable time after the repatriation effort has been completed, and we will work to ensure that they can return home straightforwardly. They will be entitled to refunds through credit cards, through the ATOL scheme, and so forth. The crucial difference is that when the company went into administration the sector could not have coped with the number of people involved, but by next week absorbing the small number of passengers who remain will not be a problem.

[Mims Davies (Eastleigh) (Con)]

Jobs and opportunities that come from access to regional airports and flights mean a lot to Members in all parts of the House, and, indeed, to my constituents who can access Southampton airport. Will the Secretary of State thank Barclays for supporting my constituents and their families? Members of the Hamble Aquatics Swim Team who were due to go to Lanzarote were reimbursed more than £9,000 so that they could train for county, national and regional championships. Their head coach, Amy Rodger, ensured that more than 20 swimmers and their coaches were able to get over there by working with local television stations and Barclays. Will the Secretary of State also thank the many other companies that have done so much to help our constituents?

[Chris Grayling]

My hon. Friend’s words speak for themselves. I am very grateful to Barclays for providing that help, and I know that a number of other businesses have done the same. The credit card companies in particular have been very constructive in their dialogue about sharing the cost of the repatriation with us, and Lloyds was especially good at getting out of the traps and working with us. I think that this was a moment when corporate Britain behaved in the right way, and worked alongside us to do the right thing.

[Luke Pollard (Plymouth, Sutton and Devonport) (Lab/Co-op)]

Having spent five years working for the Association of British Travel Agents and lobbying for greater holiday protection, may I extend my thanks to the people working hard for that and ask the Secretary of State to extend it to travel agents and tour operators? What hit does he expect the Air Travel Trust fund to take as a result of Monarch’s collapse, and can he give an assurance that the ATOL protection contribution will not go up, which would mean holidaymakers having to pay more in future?

[Chris Grayling]

We will not know exactly how much until we have gone through the numbers in detail with the administrator. We do know that only a relatively small proportion of Monarch customers were ATOL protected, because the nature of the business was mostly flight-only. I will happily inform the House once we have gone through all the details, which will take a bit of time, but it will not be a substantial proportion of the total, because of the small proportion of customers who are covered.

[Henry Smith (Crawley) (Con)]

Will my right hon. Friend join me in paying tribute to Gatwick-based airlines such as easyJet and Virgin Atlantic for stepping up and offering alternative employment to Monarch employees who now find themselves out of work?

[Chris Grayling]

I am very grateful to the airlines for the way they have responded, and they have done so in a variety of ways. It was a real team effort at Gatwick, with airline staff, airport staff and others coming together to deal with the immediate issues for passengers, and then really working to get Monarch employees sorted out as quickly as possible. I am very grateful to the staff at Gatwick, as I am to those at all the five airports affected.

[Diana Johnson (Kingston upon Hull North) (Lab)]

The Secretary of State said in his statement that the collapse of Monarch Airlines was deeply regrettable, so I wonder whether he will support the call by the pilots’ union for a probe into what exactly happened around the collapse.

[Chris Grayling]

I suspect that there will be exactly such a probe, but I also suspect that it will be led by the hon. Member for Nottingham South (Lilian Greenwood) and her Transport Committee. I do not want to gainsay what the Committee will do, but I would expect a rigorous inquiry, and my Department and the CAA will be very happy to co-operate with it.

[Mr Speaker]

James Gray.

--- Later in debate ---

[Mr Speaker]

That was a very speedy recovery from the intoxicating effects of conversation with the right hon. Member for North Shropshire (Mr Paterson), and a very useful guide to new Members on how to perform at a moment’s notice in the way that the hon. Gentleman has done. He did signal earlier that he wished to be called, so I was not picking on him.

[Chris Grayling]

Of all those involved, I feel most deeply for those who made bookings but have now lost trips and holidays. I very much hope that we can get Monarch staff into employment quickly. I hope that we can get all the passengers back safely and well. For those who have lost bookings, it is a deeply traumatic time, and we heard some very sad stories last week. Anyone who booked with ATOL protection or who booked using a credit or debit card will be able to get a refund. My advice to anyone in that position is always to ensure that they have at least one of those cover options available in case something like this happens again—let us keep our fingers crossed that it does not for a very long time.

[Liz McInnes (Heywood and Middleton) (Lab)]

Monarch has failed to consult its 1,800 employees on redundancy. What estimate has the Secretary of State made of the costs of compensation for those affected workers?

[Chris Grayling]

As the hon. Lady will know, there are statutory provisions for when businesses go into administration, because they tend not to be able to consult employees about redundancy. It falls to us to try to sort them out, and that is what we will seek to do. There are statutory provisions for compensation for people in these circumstances, but my hope is that the financial impact on them will be limited, given the number of companies looking to recruit as quickly as possible.

[James Cleverly (Braintree) (Con)]

Although the distance between Stansted, my local regional airport, and Luton, which is Monarch’s home airport, is relatively small, some people will be displaced much further afield. What plans has the Department put in place to ensure that those who are displaced during the recovery phase can get back to their most local home airport?

[Chris Grayling]

That will become a particular issue this week. We have brought 80,000 people back, but there are still about 30,000 left. We have emptier planes this week and greater consolidation of planes. We have 747s operating, and clearly a 747 replacing a short-haul Monarch aircraft leaves a gap for seats, so we are bringing flights together and more people will arrive back at a different airport. There will be a coach waiting for them that will take them straight back to their original airport, and the airports are making special arrangements on carpark access and fees to ensure that people do not lose out as a result. The CAA is managing a big bus operation and those people will get back to the place where they started.

[Stephen Timms (East Ham) (Lab)]

Actually, the fall in the value of the pound was a factor in the collapse, although I agree with the Secretary of State that another factor was the UK ban on flights to Sharm el-Sheikh. Since that ban was introduced, the Egyptian authorities, with UK support, have gone to enormous lengths to improve security at that airport. I believe that every other western country has now lifted its ban. Could we now lift ours before even more people lose their jobs?

[Chris Grayling]

The right hon. Gentleman will know from his experience in Government that we take security issues very seriously. We have looked exhaustively at the issues around Sharm el-Sheikh. We have not yet taken the decision to resume flying there. I would love us to be able to take it, but we have to be mindful of the security concerns and the risks to the travelling public of the United Kingdom. I assure the right hon. Gentleman that as soon as we feel that we can take that step, we will. We hold back only for good security reasons.

[Victoria Atkins (Louth and Horncastle) (Con)]

This has been a massive exercise in repatriating citizens and our thanks should go to the Civil Aviation Authority and others that made it happen. Will the Secretary of State please confirm the cost of the repatriation exercise? Are insurers, credit card companies and banks playing their part in reimbursing the taxpayer?

[Chris Grayling]

We expect the total gross costs of the repatriation to be around £60 million. We will recover money from all those different groups, and I will in due course be able to tell the House exactly how much the taxpayer has contributed. However, my hon. Friend can be reassured that we are very focused on making sure that there is clear burden sharing, and that it is not only the taxpayer who pays.

[Stephen Lloyd (Eastbourne) (LD)]

I applaud the Government’s efforts in bringing back passengers who were not protected by ATOL. In the modern era of mass travel by air, would it not be sensible to look at legislation around ATOL and cover both hotels and air fares in case something similar happens in future?

[Chris Grayling]

That will clearly be debated again and has been considered before. The issue is that we would have to apply a levy to every single air fare sold in the UK, whether for a UK airline or otherwise. We could not simply apply a charge to a UK-based airline for which we were responsible—we would have to charge Ryanair, Air France and Emirates passengers as well. Effectively, we would be putting up air passenger duty. I am not saying that we should not do that, but if we were to we would need to use great thought and care beforehand.

[Rachel Maclean (Redditch) (Con)]

My constituents in Redditch are incredibly hard working—thanks, no doubt, to the Government’s amazing record of job creation. However, they look forward to their well-deserved holidays, and price competition has contributed to their being able to take those breaks. Will the Secretary of State confirm that he sees no risks in the airline market that he ought to be considering?

[Chris Grayling]

That concern has been raised by the Opposition as well. The first thing to say is that our aviation sector is very strong. If people visit our airports, as I do, they will find that virtually every one will say that this has been a record year in terms of the number of passengers carried and that there have been record days in their history. Passengers are not stopping flying—more and more passengers are flying, and I am confident that that will continue.

I am also confident that we have good airlines that are growing fast: look at the success of easyJet and Jet2. Tour operators are also doing well. I am confident that the sector will grow and develop; there is demand for slots and runway space and there are acquisitions and new investments in new centres such as Jet2’s investment in Stansted. We should be confident about the sector. We can never rule out problems in the future or be certain that no airline will ever run into difficulties again. That is why we have to think through whether we need to take steps to make sure that there is proper protection for consumers. But we should be confident in our sector.

[Huw Merriman (Bexhill and Battle) (Con)]

I thank my right hon. Friend, his Department and the CAA for delivering the largest ever peacetime repatriation. As he will be aware, the UK insolvency framework does not allow insolvent airlines to continue flying, unlike what happened with Alitalia in Italy and Air Berlin in Germany. Will my right hon. Friend consider looking at the insolvency framework again in that light?

[Chris Grayling]

We will certainly give some thought to that. It is very noticeable that other airlines have been able to carry on flying in administration. The risk, of course, is that an aircraft could easily be impounded by an international airline. One of the reasons we sought to hire our own fleet was to remove that risk. If we had used the Monarch planes, there was a danger that, if they arrived at an airport and a local creditor decided to take action, the plane might have been unable to return. That is something we always need to weigh in the balance. We need to look at what happened with Air Berlin and Alitalia and see whether there are lessons to be learned, but first and foremost our task should always be to protect passengers whose journeys might otherwise be at risk.

[Ms Nusrat Ghani (Wealden) (Con)]

Price wars, stiff competition and a change in travel habits all contributed to Monarch’s failure. My constituents in Wealden have been in touch about their holidays and business trips being ruined. Can the Secretary of State confirm that he and his ministerial colleagues have visited returning passengers at UK airports and say what feedback he has received?

[Chris Grayling]

I met the first flight back at Manchester airport last Monday and my noble Friend Lord Callanan visited Leeds Bradford airport on the same day to meet people coming back. I have had a lot of letters from people who were able to travel back on the repatriation flights saying how grateful they were and how smooth it had been. There are bound to be some hiccups on the way—we had weather problems in Funchal, which led to some cancellations—but in overall terms this has been a very smooth effort and a great tribute to a team of people in the CAA who are not airline specialists, but who have come together to run an airline in a way that was, frankly, enormously impressive.

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

rose—

--- Later in debate ---

[Andrew Bridgen]

Thank you, Mr Speaker. Does the Secretary of State agree that, although every lost job is a human tragedy, the British aviation industry remains robust and resilient? I am reminded of 2012, when British Midland International collapsed, with the loss of 1,200 jobs at East Midlands airport in my constituency. These are very highly skilled people who are quickly absorbed back into the economy. Unemployment in North West Leicestershire remains at a record low of 1%.

[Chris Grayling]

My hon. Friend is absolutely right. I am delighted that we have a thriving sector, with more than 6,000 vacancies, for which the 1,800 people who have lost their jobs can apply. I am also delighted by the fact that easyJet is saying, “We want to hire 500 of them straightaway. They’re good people; we want them.” I am very confident for their future. All the support they need in the short term is being provided, but I am pretty clear that in a thriving sector those people will have a strong future.

[Wendy Morton (Aldridge-Brownhills) (Con)]

Quite clearly this has been a huge repatriation and logistical task. Can the Secretary of State confirm, though, what entitlement passengers who have not yet travelled—I am sure most of us have them in our constituencies—have to a refund?

[Chris Grayling]

We will be continuing to give advice and guidance to those people for some considerable time. We will also be contacting people this week to see who wants and has a need to return, as part of the repatriation exercise. All those who have booked through credit card companies or who have ATOL protection, regardless of how long they are out there for—I am sure a small number will be out there for an extended period—will be able to secure a refund when the time comes.

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

As well as reviewing the effectiveness of the ATOL scheme in the light of this incident, will the Secretary of State take the opportunity to look at the providers of travel insurance? Many people travelling thought that they were covered for the collapse of an airline under their travel insurance policy, only to find that they were not.

[Chris Grayling]

This is something that I will want to take up with the insurance industry. It does seem unfortunate that cover should not include something that happens once in 10 years. This is one area where there is a case for change. It would have made life a lot easier had that been the case.

[Kevin Foster (Torbay) (Con)]

I welcome the statement and the detail of what the Government have been doing, in particular the fact that 80,000 of 110,000 people abroad are now back in the UK. Can the Secretary of State confirm, though, that we will apply the lessons learned to the legislation currently going through the House to reform the ATOL scheme?

[Chris Grayling]

We have the advantage of having legislation before Parliament at the moment. If there are short-term measures that we could take, we would certainly be open to doing that, but I do not want us to rush into doing something without doing the ground work properly. We need to look carefully at what has happened, learn the lessons and make any modifications necessary. I assure the House that that is what we will do.

[Mr Philip Hollobone (Kettering) (Con)]

We should give credit where credit is due; it has been a simply remarkable achievement to repatriate such a large number of passengers in such a short period, and I congratulate my right hon. Friend the Secretary of State, his Department and the CAA on putting this together. Here we are on the first Monday back after the conference recess, and we could have been faced with having 110,000 British citizens stranded overseas. Instead, thanks to his actions, 80% of them are already back and the rest can be confident of coming back on time.

[Chris Grayling]

I am grateful to my hon. Friend for those kind words. They are a tribute to the work done by people right across Whitehall—nine different Departments and organisations were involved—by those who have gone out to man the departure lounges at airports around Europe and by the people operating the airline. This has been a fantastic effort, they have done a brilliant job for all of us and I am very grateful to them.

[Tom Pursglove (Corby) (Con)]

What steps is my right hon. Friend taking to make sure that there is no loss in capacity and that excess slots that have now emerged are allocated as quickly as possible?

[Chris Grayling]

The fact that there is now some debate over the value of the slots as they are taken up by other airlines shows that there is a queue of operators waiting to move in where Monarch has been. We have already heard from Jet2 that it is looking to pick up some of the slack that Monarch has left behind, and I have no doubt that we will see others moving in very quickly as well. Our sector is thriving, those gaps will be filled and there will be lots of flight opportunities in future.

Airports National Policy Statement

Lord Grayling Excerpts

Thursday 7th September 2017 Written Statements

[The Secretary of State for Transport (Chris Grayling)]

In my statement on 13 July this year, I said I would set out the next steps of the draft airports national policy statement (NPS) process following the summer recess.

The Government consulted on a draft airports NPS between 2 February and 25 May this year.

We received over 70,000 responses, and work to analyse them is ongoing. I would like to thank everyone who took the time to feed in their views.

In the consultation document, my Department was clear that further work was under way to update the evidence base, including revised aviation demand forecasts and the Government’s final air quality plan. It was intended these documents would be presented for consideration during the initial consultation, but the timing of the general election meant this was not possible.

I am therefore confirming that there is a need to conduct a short period of further consultation to allow this updated evidence to be taken into account. This further consultation will focus mainly on the specific elements of the NPS affected, and is expected to begin later this year.

I appointed the former Senior President of Tribunals, Sir Jeremy Sullivan, to provide independent oversight of the consultation process. I am very grateful to him for his hard work in helping to ensure that the consultation was as open, fair and transparent as possible. Today I am publishing his report on the initial consultation, and can announce that he has agreed to oversee the period of further consultation.

In my statement in July I said that the timing of the election—in particular the need to re-start the Select Committee process—meant we now expect to lay any final NPS in the first half of 2018 for a vote in the House of Commons. This Government remain committed to realising the benefits that airport expansion could bring, and I can confirm that we do not expect this additional period of consultation to impact on the timetable for parliamentary scrutiny of the NPS.

[HCWS119]

High Level Output Specification

Lord Grayling Excerpts

Thursday 20th July 2017 Written Statements

[The Secretary of State for Transport (Chris Grayling)]

I am today publishing my high-level output specification (HLOS) and initial statement of funds available (SOFA) for the railway for control period 6, which covers the years 2019 to 2024.

The Government are determined that the railway becomes more focused on issues that matter most to passengers—such as punctuality and reliability. A more reliable railway also plays a critical role in underpinning economic growth and bringing the country together. The Government are committed to taking action to achieve these outcomes.

The HLOS is therefore focused on the operation, maintenance and renewal of the existing railway—the areas of activity that will deliver a more reliable railway for passengers. The Government are already delivering significant enhancements to the railway, including High Speed 2 and Crossrail and expect to continue to invest in the enhancement to the wider rail network in the next control period. In the light of the findings of the Bowe review, which emphasised the need to enable better planning, cost control and alignment with the needs of users of the railway, Government will take forward the funding of these enhancements separately. The Government are developing a new process for delivering enhancements and intend to publish more information on this in the autumn.

On the basis of independent advice from the Office of Rail and Road, as well as from the rail industry, the Government have agreed that an increased volume of renewals activity will be needed over the course of control period 6, to maintain safety and improve on current levels of reliability and punctuality, which in places fall short of the levels that passengers rightly expect. This enhanced programme of renewals will be supported by appropriate volumes of operations and maintenance activity required to maintain safety and improve the reliability and punctuality of train services.

Before committing to the specific levels of funding required, I have decided that the Government require more assurance on the likely costs of the work programme. Network Rail’s progress on improving its efficiency in recent years has fallen short of my expectations. Improving efficiency is vital if we are to maximise the value of taxpayer spending on the railway in driving improvements for passengers and freight shippers.

The Government will therefore carry out further work to examine the approach to setting appropriate levels of maintenance and renewals activity for control period 6 and to improving Network Rail’s efficiency. This will enable me to confirm the extent of Government’s funding envelope through the publication of a statement of funds available by 13 October 2017. This work will draw on a number of sources, including the new independent review of progress on efficiency planning which the regulator has commissioned.

Alongside the publication of the HLOS, I am issuing new statutory guidance to the independent Office of Rail and Road. This sets out my priorities for rail regulation. These include supporting the ORR’s work to improve Network Rail’s efficiency and improving the experience of users of the railway.

I am placing copies of the HLOS and SOFA, and of the statutory guidance to the Office of Rail and Road in the Libraries of both Houses.

Attachments can be viewed online at:

http://www.parliament.uk/business/publications/written-questions-answers-statements/written-statement/Commons/2017-07-20/HCWS86/

[HCWS86]

Rail Update

Lord Grayling Excerpts

Thursday 20th July 2017 Written Statements

[The Secretary of State for Transport (Chris Grayling)]

I wish to inform the House about some important developments regarding the rail networks of the midland main line, south Wales and the north of England.

Passenger numbers on the UK rail network have more than doubled since privatisation 20 years ago and our country’s railways need to adapt and change to be able to meet current and future demand. Therefore we are delivering the largest upgrade of the rail network since Victorian times, including modernising rail services and infrastructure on the Great Western main line, midland main line and in the north.

Technology is advancing quickly, and this Government are committed to using the best available technologies to improve each part of the network. New bi-mode train technology offers seamless transfer from diesel power to electric that is undetectable to passengers. The industry is also developing alternative fuel trains, using battery and hydrogen power. This means that we no longer need to electrify every line to achieve the same significant improvements to journeys, and we will only electrify lines where it delivers a genuine benefit to passengers.

These new technologies mean that we can improve journeys for passengers on the Great Western main line in south Wales, the midland main line, and on the lakes line between Windermere and Oxenholme sooner than expected with state-of-the-art trains, instead of carrying out disruptive electrification works along the whole of these routes.

Midlands

The competition to find the next operator for the midland main line is under way. Our goals for the next east midlands franchise are to improve journeys for passengers, drive even stronger economic growth and support investment across the whole region. We want to hear from passengers and local communities about the next rail franchise to ensure it delivers the services that passengers want. I am therefore pleased to inform the House that my Department is today launching a public consultation on the next franchise. The consultation, which will run for 12 weeks from today, will help to inform and develop the franchise specification for inclusion in the invitation to tender. The consultation is available online and will also include a number of local stakeholder events.

The next east midlands franchise will help drive the midlands engine and improve passenger journeys by maximising the passenger benefits of the significant upgrade of the midland main line, the biggest investment in the route since it was completed in 1870. The upgrade will enable reduced journey times and more seats for long-distance passengers during the peaks, as well as more capacity for commuters with dedicated services with longer trains. Journeys will improve from 2020 and, once the full benefits are realised, there will be almost twice as many seats into London St Pancras in the peak compared to today.

The next operator will be required to deliver modern, fast and efficient trains. This includes a brand new fleet of bi-mode intercity trains from 2022, delivering more seats and comfort for long-distance passengers. The provision of these trains will replace plans to electrify the line north of Kettering to Sheffield and Nottingham, improving journeys sooner, without the need for wires and masts on the whole route, and causing less disruption to services. We do not intend to proceed with plans to electrify the line from Kettering to Sheffield and Nottingham, and there will be further investment to come to ensure Sheffield is HS2-ready.

Wales

From autumn 2017, passengers in Wales will benefit from new intercity express trains which will each deliver over 130 more seats, faster journey times and improved connectivity for south Wales to London with 40% more seats in the morning peak once the full fleet is in service.

These innovative new trains switch seamlessly between electric and diesel power, delivering faster journeys and more seats for passengers without disruptive work to put up wires and masts along routes where they are no longer required.

Rapid delivery of passenger benefits, minimising disruption and engineering work should always be our priority and as technology changes we must reconsider our approach to modernising the railways. We will only electrify lines where it provides a genuine benefit to passengers which cannot be achieved through other technologies.

As a result, we no longer need to electrify the Great Western route west of Cardiff. In addition to the new trains, Network Rail will develop further options to improve journeys for passengers in Wales. These will include, but not be limited to:

Improving journeys times and connections between Swansea and Cardiff, and south Wales, Bristol and London

Improving journeys times and connections across north Wales

Direct services from Pembroke Dock to London via Carmarthen on new, state of the art intercity express trains

Station improvements at Cardiff station

Station improvements in and around Swansea including looking at the case for additional provision

I also support a proposal for Wales’ first privately funded railway station at St Mellons. My Department will work with the promoters of the scheme as they develop their plans to the next stage.

The first new intercity express trains will enter service from this October and once the whole fleet is introduced and electrification to Cardiff is complete journey times between Swansea, London and other stations along the route will be approximately 15 minutes shorter.

The north

We are investing in the northern powerhouse, upgrading rail services across one of the country’s largest networks to improve connections between towns and cities. Passengers in the Lake District will benefit from double the number of direct services to Manchester airport from May 2018. From 2019, there will be brand new trains with more seats and better on-board facilities including air conditioning, toilets, free wi-fi and plug sockets, subject to business case.

We have listened to concerns about electrification gantries spoiling protected landscapes. Northern, the train operator, will therefore begin work to explore the possibility of deploying alternative-fuel trains on the route by 2021, improving comfort and on-board facilities for passengers while protecting the sensitive environment of this world heritage site. This trial will pilot an alternative-fuelled train, removing the need to construct intrusive wires and masts in this national park. Journeys between Windermere and Manchester airport will be improved sooner and with less disruption to services and local communities. This replaces plans to electrify the line between Windermere and Oxenholme.

This investment is a part of the great north rail project, which will deliver more frequent trains and new direct services on the west coast main line, with faster journeys and increased frequency into and through Manchester from across the north-west. It will boost access to jobs and new opportunities, growing the northern powerhouse by improving connections between the Lake District and the Manchester airport international gateway.

Train operators and Network Rail will need to work as one to deliver these upgrades and introduce the new fleets in a way which ensures passengers experience better journeys as soon as possible.

Rail franchise schedule

The Government have also today published the updated rail franchise schedule, which includes changes to the timescales for the east midlands, cross country and west midlands rail franchises. A copy of the schedule will be placed in the Libraries of both Houses.

Attachments can be viewed online at: http://www. parliament.uk/business/publications/written-questions-answers-statements/written-statement/Commons/2017-07-20/HCWS85/.

[HCWS85]

HS2 Update

Lord Grayling Excerpts

Monday 17th July 2017 Written Statements

[The Secretary of State for Transport (Chris Grayling)]

I would like to update the House on the progress of High Speed Two.

Phase One of the railway—from London to West Midlands—is progressing well. In February, Parliament granted powers to construct the route from London to Birmingham, including new stations at London Euston, Old Oak Common, Birmingham Curzon Street and Birmingham Interchange, near Solihull. As a result, enabling works on the route, contracts for which were awarded last November, have now started.

In March last year, the tender shortlist for Phase One of the main civil engineering works contracts, comprising bridges, tunnels, embankments and viaducts, was released. These are the biggest HS2 contracts to date. In a clear signal of how work is progressing, this morning I am pleased to announce the decision to award Stage 1 of these contracts, comprising design and construction preparation works, to the joint ventures set out below. Contracts are expected to be signed after completion of the mandatory standstill period. The joint ventures are as follows:

Area South

S1—Euston Tunnels and Approaches—SCS JV (Skanska Construction UK Limited, Costain Limited, STRABAG AG)

S2—Northolt Tunnels—SCS JV (Skanska Construction UK Limited, Costain Limited, STRABAG AG)

Area Central

C1—Chiltern Tunnels and Colne Valley Viaduct—Align JV (Bouygues Travaux Publics, VolkerFitzpatrick, Sir Robert McAlpine)

C2—North Portal Chiltern Tunnels to Brackley—CEK JV (Carillion Construction Limited, Eiffage Genie Civil SA, Kier Infrastructure and Overseas Limited)

C3—Brackley to South Portal of Long Itchington Wood Green Tunnel—CEK JV (Carillion Construction Limited, Eiffage Genie Civil SA, Kier Infrastructure and Overseas Limited)

Area North

N1—Long Itchington Wood Green Tunnel to Delta Junction and Birmingham Spur—BBV JV (Balfour Beatty Group Ltd, VINCI Construction Grands Projets, VINCI Construction UK Ltd, VINCI Construction Terrassement)

N2—Delta Junction to WCML Tie-In - BBV JV (Balfour Beatty Group Ltd, VINCI Construction Grands Projets, VINCI Construction UK Ltd, VINCI Construction Terrassement)

The expected total value of these contracts including both Stage 1 and Stage 2 (the full construction phase) is currently estimated to be worth around £6.6 billion. Stage 2 will commence in 2019 and, along with Stage 1, is expected to support 16,000 jobs across the country. In addition, they are expected to generate 7,000 contract opportunities in the supply chain, of which around 60% are expected to go to SMEs.

HS2 stations at Euston, Old Oak Common and in Birmingham will be central to HS2 and the work needed to develop designs is also well underway. Last week, both the Invitations to Tender (ITTs) for the station design services contracts for all four Phase 1 stations and the Invitation to Participate in Dialogue (ITPD) for a Euston master development partner were released to shortlisted bidders. These are significant milestones. They show how progress is continuing at pace in order to deliver stations that will be embraced by the local communities, drive economic growth and provide seamless journeys for passengers.

We are also making good progress on the rest of the route. Later today, I will be introducing a Bill to Parliament seeking the necessary powers to construct Phase 2a of HS2, from West Midlands to Crewe. Phase 2a will bring HS2 within reach of all the cities in the North that have existing rail connections to Crewe. I will also be updating the House on other developments along the Phase 2 route including decisions on the 2b route from Crewe to Manchester and West Midlands to Leeds.

The progress we are making with HS2 is clear evidence that the Government are delivering on their commitments and are getting on with building the infrastructure needed to build a stronger, fairer, more prosperous Britain.

[HCWS49]

HS2 Update

Lord Grayling Excerpts

Monday 17th July 2017 Commons Chamber

[The Secretary of State for Transport (Chris Grayling)]

I am grateful to you for allowing this statement, Mr Speaker. I am pleased to be here in front of the House tonight. As you know, sometimes these things can happen as a result of cock-up rather than conspiracy.

Today marks a major milestone in the Government’s plans to deliver High Speed 2. High Speed 2 will deliver economic growth across the United Kingdom. It will provide the rail network with the capacity we need for the next century, faster journeys and better connections between cities across the UK.

As announced to the House this morning, we will be awarding stage 1 of the main works civil engineering contracts for the phase 1 route from London to Birmingham. This stage primarily covers design and pre-construction activities, although it is worth saying that the initial works have already begun. We expect these contracts to be signed by the end of this month after the completion of the mandatory standstill period. The expected total value of these contracts covering stages 1 and stage 2, which is the full construction phase, is £6.6 billion. They will support around 16,000 jobs across the country and are expected to generate around 7,000 contract opportunities in the supply chain, of which I expect around 60% to go to small and medium-sized enterprises. I have also confirmed the shortlists for the station design contracts and Euston master development partner procurements.

As well as that announcement, today I am introducing the phase 2a High Speed Rail (West Midlands - Crewe) Bill to the House. This seeks the powers to construct HS2 from the west midlands to Crewe so that this important section, which links up to the west coast main line just south of Crewe, can open in 2027.

The design of the route set out in the Bill is largely as announced in 2015. However, there are three refinements I have decided to make, following consultation last year. I have decided to move the connection to the west coast main line and the start of a tunnel in Crewe further south. I have also decided to move the construction railhead, and subsequently the infrastructure maintenance facility for this part of HS2, from the Basford area near Crewe to a location near Stone. I am very sensitive to the impact that that could have on the local community, which my hon. Friend the Member for Stone (Sir William Cash) has diligently drawn to my attention, but I believe this site is a better location from which to construct and maintain phase 2a. The new location near Stone is strategically located midway along the phase 2a route, which means that it can support construction activities heading north and south simultaneously, offering significant programme and construction benefits. Of course, the site at Stone benefits from good transport links, with access to the M6 and the existing rail network right at that location.

In Crewe, moving the railhead from the Basford area avoids planned housing regeneration in that part of Cheshire. It also negates the need for maintenance loops at Pipe Ridware, thereby reducing impacts along the phase 2a route. It is worth saying that that area of Basford is one of Cheshire’s most significant economic development and housing development sites, and I have been very sensitive to that. The construction railhead and infrastructure maintenance facility have been carefully designed so as to minimise impacts locally, particularly on the community of Yarnfield. Having heard local concerns, I have made sure that Yarnfield Lane will remain open.

In preparing the Bill, HS2 Ltd has sought to minimise impacts on the environment and on communities. Following the deposit of the Bill, there will be a consultation on the scheme’s environmental statement. That will provide the opportunity to comment on the environmental effects of the proposed phase 2a scheme and the reasonable alternatives considered and reported by HS2 Ltd. The process will result in a report from an independent assessor, which will be provided to all Members of the House before Second Reading.

Turning to Crewe, the HS2 business case has always included two trains per hour stopping at Crewe. The phase 2a Bill includes the interventions needed to support that, but I know that there is a strong ambition to achieve even more. Today, I am therefore launching a consultation on options to develop a Crewe hub. This work shows how such a service pattern could support an HS2 service to Stoke-on-Trent and bring benefits to places like Chester, north and south Wales, Shrewsbury and Derby. Future decisions will be subject to affordability and value for money. Funding the broader vision for a Crewe hub will require national and local government to work together, but I believe that there is the potential to deliver even more benefits.

Finally today, I am announcing my decision on the outstanding sections of the phase 2b route to Manchester and Leeds, which we consulted on last year. After carefully considering the responses to the consultation, I have decided to confirm the following changes to the route. The western leg rolling stock depot will move from a site near Golborne to a site north of Crewe. That site will be included in the full environmental assessment being undertaken for the whole route and I will look carefully at that assessment.

A 26 km section of the route in the Middlewich and Pickmere area of Cheshire will change and be raised as it passes through the Cheshire salt plains, to avoid brining and gas storage infrastructure. The approach to Manchester Piccadilly station will be adjusted to improve operational efficiency and reduce impacts on residential areas and a primary school. The route near East Midlands airport will now closely follow the eastern side of the A42. This avoids tunnelling under the airport and reduces the impacts on some communities. At Long Eaton, after much consultation with the local community, the route will pass through the town on a high viaduct.

The route in South Yorkshire will be the route we consulted on in 2016, which in part follows the M1 and M18, and serves Sheffield city centre via a spur from the HS2 line. I am also asking HS2 Ltd to take forward the provision of a northern junction back on to HS2, giving a city centre to city centre connection between Leeds and Sheffield in less than 30 minutes. That is very important for the development of Northern Powerhouse Rail. We will also continue to work on a possible parkway station.

Finally, I have decided not to proceed with the proposed change of route to the east of Measham. Instead, I am confirming a modified version of the 2013 preferred route to the west of Measham. In Measham itself, the route is moved approximately 80 metres and the viaduct extended to mitigate commercial property impacts. I have heard the concerns raised by local communities about the proposed eastern leg rolling stock depot at Crofton. HS2 Ltd believes it has found a better option, on which I am now consulting, which is east of Leeds in the Aire valley, adjacent to the M1 on a brownfield site.

I intend to bring forward a third hybrid Bill for phase 2b in 2019. In preparation for that Bill, HS2 Ltd is today launching a consultation on the technical scope and methodology to be used in the environmental and equality impact assessments.

Today’s decisions bring certainty for communities who have been unsure of the route for some years. I am updating the safeguarding directions for the phase 2b route to protect the land required for the construction and operation of the line. I can also confirm that the same range of property schemes currently operating for phases 1 and 2a will be available for phase 2b. This goes over and above what is required by law and gives assistance to those along the line of the route. I have also made amendments to some of the detailed urban/rural boundaries for phase 2b and to the treatment of properties around tunnel portals.

A report published today by property specialists Carter Jonas tells us that the particular circumstance of the Shimmer estate development in Mexborough, South Yorkshire means that this package may not allow some homeowners to acquire a similar property in their local area. In the light of the report’s findings, I therefore also confirm that the Government will ensure that Shimmer homeowners can secure a comparable home, as referred to in my summary document “High Speed Two: From Concept to Reality”, which is also being published today. That is really important.

We need HS2. Since privatisation, the number of passenger journeys on our railways has doubled. It has nearly tripled on the key west coast inter-city corridor. We cannot continue to rely on the legacy of our Victorian forebears, far-sighted though they were. By providing new routes for inter-city services, HS2 will free up space on our existing railways. It will reduce overcrowding and allow options for more varied and frequent services, including for places that currently do not have a good connection to London. This released capacity could allow more freight trains. It could also more than double the current number of peak-time seats on busy services from Manchester Piccadilly towards Stoke and Crewe, and from Leeds towards Wakefield. It has the potential to almost double peak seats from London to Peterborough and east coast destinations further north.

Any significant investment needs to offer good value for money, as HS2 does. Today I am publishing the updated business case for phase 2, which shows that, including the wider economic benefits, the full HS2 network will create £2.30 of benefit for every £1 spent. We want to make the most of our investment in HS2. When phase 1 becomes operational, HS2 trains will run to Manchester, Liverpool, Preston, Warrington, Wigan and Glasgow. Phase 2 will further reduce journey times between London and Glasgow and Edinburgh to around three hours and 40 minutes. To my Scottish colleagues, let me say that we will continue to work with Transport Scotland and Network Rail to look at the best ways of further reducing times, towards an ultimate ambition of a three-hour journey time between London and Scotland. We are also looking at opportunities to use HS2 to support Northern Powerhouse Rail and Midlands Connect.

Finally, I know that today’s announcement will not be welcome news for those living along the line of the route. There will be concern about how HS2 will affect their homes, communities and businesses. That, sadly, is inevitable if we are going to do big projects of this kind for our nation, but I am determined that we will engage extensively with everyone affected and that we will show fairness, compassion and respect. All the products mentioned today are in the Libraries of both Houses.

Our plan for Britain is a plan to build a stronger, fairer country, with an economy that works for everyone—one in which wealth and opportunity are spread across the country and we are set up to succeed in the long term. Investment in economic infrastructure is a key part of this. HS2 will be the new backbone of the UK rail network. It will transform a rail network built for the 19th century into one designed for the 21st century. It will increase capacity and connectivity across our rail network, bring our country closer together and support economic growth. The benefits of HS2 will be felt across the whole of the United Kingdom. I commend the statement to the House.

[Andy McDonald (Middlesbrough) (Lab)]

May I thank the Secretary of State for advance sight of his statement? I also thank you, Mr Speaker, for hearing the point of order made earlier today by my right hon. Friend the Member for Doncaster North (Edward Miliband) about what could be done to encourage the Secretary of State to better inform the House of the crucial decisions that he has reached on one of the most significant and costly pieces of transport infrastructure that this country has proposed for many a year.

Perhaps the Secretary of State will be kind enough to explain what happened earlier today, given the widespread trailing of an oral statement on the anticipated announcement and the House’s subsequent disappointment at initially being asked to settle for a written statement, until such time as the outcry seemingly reached the Transport Secretary’s ears and his somewhat belated appearance in the Chamber tonight.

Labour has consistently supported HS2 and the attendant benefits it will bring—indeed, we were its initial proposer in 2009—but that support brings with it many questions. On the construction, there are concerns that companies selected to do the work were previously involved in the practice of blacklisting workers.What assurances can the Secretary of State give that no such practices will be tolerated in the delivery of HS2? Far too often in the case of significant projects in recent times, overseas contractors—and several have been awarded contracts here—have brought in their own labour, and have recruited exclusively from jurisdictions outside the United Kingdom. HS2 clearly represents huge employment and career opportunities for apprentices and established workers alike. Can the Secretary of State guarantee that the practices we have seen in the construction industry that have excluded British workers from UK projects will not be allowed to obtain in the construction of HS2?

There are also concerns about the financial health of Carillion. What measures has the Secretary of State put in place to ensure that any financial instability of any of the contractors will not delay or add to the cost of the project? He said in evidence to the Treasury Committee that it was not his job to monitor conflicts of interest in the delivery of HS2, but given the revelations of the revolving door between HS2 and the engineering firm CH2M, does he accept that he does, in fact, have such an obligation if the public are to have confidence in the arrangements between HS2 and the contractors?

What assurances and guarantees can the Secretary of State give that the total overall cost will not exceed the stated £55.7 billion, and will not spiral, as has been alleged in certain quarters? In one of the many documents published today, we are told that in adopting the M18 route in south Yorkshire, although HS2 Ltd has included in the costs estimate the delivery of a junction north of Sheffield and back to the HS2 main line, it has not costed electrification of the midland main line between Clay Cross and Sheffield Midland, or from Sheffield to the north. Does the Secretary of State intend the line to be electrified in readiness for HS2—and if so, when—or is he working on the basis that trains to Sheffield will be bimodal, and the line will remain unelectrified?

Will the Secretary of State provide further and better particulars of his proposals and preferences in respect of potential parkway stations? Will he also provide an update on the progress of the northern east-west rail and the extension to the north-east—“Crossrail for the north”—and its connection with HS2, and on what discussions he has had with Transport for the North in that regard? Finally, will he reassure the House that his announcement about progress on HS2 will not be followed by an announcement of yet further delays to electrification of the trans-Pennine route?

[Chris Grayling]

I am grateful to the hon. Member for Middlesbrough (Andy McDonald) for the Opposition’s continued support for the HS2 project. I hope that we shall be able to work on it together. I think that the House, or a large proportion of it, is united in believing that the project is necessary to the economic development of the future.

As I said a moment ago, I am very pleased to be here now. I should have preferred to be here earlier, but, as I said, it is sometimes a case of cock-up rather than conspiracy.

Let me begin by saying something about the construction contracts. We have contracted a range of significant British companies as part of the awarding of contracts today. A range of consortiums is participating, and many of them are already an integral part of Crossrail, which is our biggest engineering project—and the biggest in Europe. We have a good team of UK and international organisations that are used to working as a team to deliver big infrastructure projects. However, the assurance that I give the hon. Gentleman and the House is that, as I have made clear all along, the companies that win contracts for HS2—whether construction, design or, ultimately, rolling stock contracts—will be obliged to make a commitment to leave a lasting skills footprint. That means apprenticeship programmes and skills development, and I think the two high-speed college campuses that we have established in Birmingham and Doncaster will help to develop real expertise for the future.

The hon. Gentleman talked about Carillion. Carillion is a big UK construction business which is clearly going through a troubled time, and we all hope that it will pull through, because we want to see British business succeed. However, I can tell him that Carillion is part of a consortium in which all the organisations involved have committed to delivering their part of the contract, and I am confident that whatever the position in respect of Carillion, that consortium will deliver the results that we expect.

The hon. Gentleman talked about conflicts of interest and CH2M. As he is aware, it pulled out of that particular contract. I have every intention of ensuring that we have proper behaviour by companies in future; they will be unable to continue to work for us if they do not do the right thing.

The hon. Gentleman asked about the total cost of the project. Over the past 24 hours there have been some wild rumours about the cost, based on people who are not involved in the project putting a finger in the air. I simply remind the House that it is incredible, inconceivable and simply nonsense to suggest that HS2 will cost five times the amount of HS1 per mile. This project has a total cost attached of £55.7 billion. It is currently on time and on budget, and I expect it to stay that way. In this country we have experience of major projects, such as Crossrail and the Olympics, and we have been pretty good at delivering on time and on budget. I am sure that we will carry on doing so.

The hon. Gentleman asked about electrification of the M18 route. I can confirm that the route from Sheffield Midland north to Leeds will also be electrified to ensure that through services can run to Leeds. That link is also an important part of northern powerhouse rail. On parkways stations, work is continuing to look at the best options. With regard to the whole northern powerhouse rail project, I am waiting for Transport for the North to bring forward its proposals. With regard to trans-Pennine modernisation, nothing has changed.

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

I thank you, Mr Speaker, and I thank the Secretary of State for coming to the House to make a statement on this important project at this late time of night—I am willing to discuss HS2 with him any time of the night or day. He has put a great deal of confidence in the contractors he announced today, to which he is awarding £6.6 billion of taxpayers’ money. However, just by glancing at recent news reports, we see that Strabag, an Austrian firm, is pulling out of a hydroelectric plant contract in Bosnia, having sought to increase the contract price. Skanska UK has revealed major project cost overruns and write-downs of £33 million. Costain has yet to reach a settlement for a private finance initiative project contract with the Greater Manchester Waste Disposal Authority, where it has already incurred £15 million of losses. Last December the Health and Safety Commission confirmed that Kier Infrastructure and Overseas Ltd was being prosecuted for three incidents that took place during the construction of the Crossrail tunnel. That is in addition to Carillion’s well documented financial problems, which mean that it is having to restructure. Can he confirm that he knew about all those matters, that he has carried out due diligence on those companies, and that the taxpayer is not in reality carrying unacceptable risks on the construction of HS2?

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[Chris Grayling]

We of course monitor the fitness for contracts of all the companies we award contracts to. The consortia to which we have awarded contracts today are groups of firms that have a track record of delivering major projects for this country, and they also include major British businesses that I want to see succeed. It is really important to ensure that we use the expertise that is already delivering for us and that we also champion British business. The awarding of the contracts does that job.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

I thank the Secretary of State for advance sight of his statement, and for his honesty in admitting that today’s proceedings are yet another Government cock-up, which is quite the theme.

I have consistently spoken in favour of High Speed 2, so long as Scotland is not excluded. I therefore welcome the Secretary of State’s restatement of the aspiration to have a three-hour journey time to Scotland. By contrast, my scheduled journey time today from Glasgow to London was four and a half hours—50% longer—which shows the real benefits that high-speed rail could bring. However, my understanding is that when high-speed trains run on the existing network north of Crewe they will actually run slower than my train did today. Can he confirm that, and if so, what will be done to look at the rolling stock to try to improve that speed?

Can the Secretary of State also advise on the estimated journey time of three hours and 45 minutes when high-speed trains start running to Glasgow, and how much that reduced journey time will be due to the reduced number of stops? Can he confirm in which investment periods upgrades to the west coast main line north of Crewe will take place? A previous KPMG report highlighted some possible negative impacts in Scotland, including a predicted £220 million drop in economic output in Aberdeenshire, if high-speed rail continues without including Scotland. Has he updated the review of those figures, and if not, why was the Secretary of State for Scotland able to tweet that today’s announcements on high-speed rail will bring economic benefits to Scotland?

I want to reiterate the concerns about Carillion, which now has the prefix “troubled” when it is mentioned in the newspapers. What engagement has there been with Scottish companies for bids? Will the Secretary of State uphold his predecessor’s commitment that offsite constructions will definitely be in Scotland? With regard to today’s announcement about the Crewe hub, can he confirm that it will not be to the detriment of services to Scotland or the funding of upgrades north of Crewe? Finally, I offer the small reminder that the devolution of Network Rail to Scotland would allow the Scottish Government to progress upgrades north of the border much quicker.

[Chris Grayling]

As I said earlier, this project benefits the whole United Kingdom. It will reduce journey times to Scotland, and I am committed to looking at how we ensure those journey times come down on and beyond the HS2 network. I will work closely with my Scottish colleagues to see how best we can achieve that, to deliver what people in Scotland want, which is— [Interruption.] Well, I hate to say this to the Scottish National party, but actually we are the ones who just made ground in Scotland. The hon. Gentleman will not be surprised if I listen to my Scottish colleagues, who seem to me to have their fingers firmly on the pulse of what people in Scotland want. Of course, we will deal with the Scottish Administration, but there is more than one voice for Scotland in this House now.

Service patterns for the future will ultimately depend on timetabling much closer to the time, but I expect to see genuine benefits for people across the network served by HS2 in Scotland, the north of England and north Wales. This investment will lead to better services all around the country. It will deliver better services from the east coast ports; I see my hon. Friend the Member for Brigg and Goole (Andrew Percy) in his place, and there is a real opportunity to open new routes to those ports on the existing east coast main line. There is a real opportunity to improve the services to cities off the HS2 network that will be served by HS2 trains—Glasgow, Edinburgh, Newcastle, Preston, Liverpool. This will benefit people on a very widespread basis.

The hon. Gentleman talks about a drop in economic activity. This is a huge project that will feed the supply chain all around the United Kingdom. So this will be good news for Scottish business, good news for English business, good news for Welsh business and good news for Northern Irish business. This is good news for the United Kingdom as a whole.

The hon. Gentleman talked about Carillion. I would hope that everyone in this House would share my ambition that a British company going through a troubled period pulls through and has a stronger future, and I see no reason, when it is part of a consortium that has agreed collectively to deliver for us, why we should hold its current position against it and take away an opportunity that might help that business recover.

Lastly, I do not see how delivering on a Crewe hub that will help connections to north Wales, for example, should in any way disadvantage Scotland.

[Sir William Cash (Stone) (Con)]

As my right hon. Friend knows, I am profoundly and deeply opposed to phase 2, which goes straight through my constituency from top to bottom. Will he confirm that Yarnfield Lane will be kept open, as he said in his statement, and reconfirm his personal assurance to me that he has instructed officials to prepare plans for a deeper and longer tunnel at Whitmore, Baldwin’s Gate and Madeley, and that he will give renewed consideration to the introduction of property bonds, which I have pressed for in the past?

[Chris Grayling]

I pay tribute to my hon. Friend; I accept that it is never easy when a project like this comes through a constituency, and I respect the constructive way in which he has approached this on behalf of his constituents. I know he and his constituents feel strongly about it. I can give him an assurance in each of those areas. As he knows, I have been to his constituency and looked at the impact of the route and can confirm that Yarnfield Lane will remain open. I can also confirm that we are looking again at the tunnel issue and how we best deal with the issue of properties, as he discussed. I will continue to have discussions with him and seek to do the best we can for his constituents, whom I know do not welcome this development, necessary though it is for the country as a whole.

[Lilian Greenwood (Nottingham South) (Lab)]

I welcome the Secretary of State’s announcement today. Certainty about the route and the timetable for progressing the project is essential if businesses are to have the confidence to invest and create jobs in the region served by HS2. But, as he acknowledged, decisions also present huge challenges for those communities most affected, and HS2 Ltd has rightly been criticised for the way it dealt with communities on phase 1, so what specific action has he taken to ensure improved engagement and address the need to respond promptly, effectively and sensitively to community concerns?

[Chris Grayling]

I thank the hon. Lady for her support for the project as a whole. I accept her criticism; I met the HS2 leadership team this week and expressed my concern that that should change. I am absolutely clear that as we go through the process of the hybrid Bill for phase 2a, and the further process for phase 2b, I expect HS2 to do the right thing by the affected communities. I invite any Member of the House to come and see me or the Minister responsible if they feel that that is not happening, and we will seek to ensure that it does.

[Several hon. Members rose—]

[Mr Owen Paterson (North Shropshire) (Con)]

I thank my right hon. Friend for his statement. He has confirmed that there will be a major construction site just inside the constituency of my hon. Friend the Member for Stone (Sir William Cash). There are no exits to the M6 in that area, between Stone and Crewe, so the A525, which runs through my constituency—and particularly the village of Woore—will be affected. Does he have any idea at this stage of the volume of material that will be transported to the construction site, first by rail and laterally by cross-roads such as the A525?

[Chris Grayling]

One of the advantages of the site is that it adjoins the west coast main line, and I expect as much as is practical to be delivered and taken away by rail. There certainly will be a road impact, however, as we move towards the construction phase. As we go through the hybrid Bill process, we will discuss that in detail with the Members of Parliament representing the affected constituencies, and I am open to asking Highways England to look at any local amelioration measures that could be put in place to ensure the least possible trouble to the local communities.

[Edward Miliband (Doncaster North) (Lab)]

I am afraid that the Secretary of State’s statement will provoke deep anger among my constituents, not just because of the local impact on them but because they believe, as I do, that this is the wrong choice for jobs, for regeneration, for connectivity and indeed for the ambitions of HS2 for South Yorkshire. I want to ask him two questions in that context. First, the consultation came back 15:1 against the M18 route, so why did he ignore it? Secondly, can he honestly say that this is a better choice for Barnsley, Doncaster and Rotherham—towns that need to benefit from HS2?

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[Chris Grayling]

I know how strongly the right hon. Gentleman feels about this—he and I have spoken about it—and I give him my personal assurance that I have considered the matter very carefully. The truth is that, when it comes to consultations, there are strong views against an option when it affects a particular community. There is no doubt about that at all. I have considered the regeneration issues around Meadowhall as compared with the current route, and I have considered the engineering challenge of building a large station in the Meadowhall corridor. I have also been mindful of the potential benefits of the direct connection between Sheffield Midland and Leeds for northern powerhouse rail. My judgment, after much consideration and listening to the advice of the HS2 leadership team, is that this is the best option. I accept that the right hon. Gentleman will not agree with my decision, but I give him my personal assurance that I have not taken it lightly. I have listened to what he and others have said and given the matter careful thought. He will disagree with me, but I want him to believe that this was a sincerely taken decision.

[Anna Soubry (Broxtowe) (Con)]

In Broxtowe, many people support HS2—rightly, in my view—because we know that it will bring jobs and growth to the east midlands hub at Toton sidings. People in Trowell will be delighted that the rural scheme for compensation has been extended, and I really do thank the Secretary of State for that decision. However, there will not be the support for the scheme that there should be because of the proposed 60-foot viaduct through the village. Will he give an undertaking that he will look at that again? If he changes his mind about that, the scheme will have widespread support throughout the whole of Broxtowe.

[Chris Grayling]

As the hybrid Bill goes through its consideration in this House, there will be have to be debates about such issues, and I know that my right hon. Friend and the petitioners will make that point clearly to the Committee. The High Speed Rail (London - West Midlands) Act 2017 was modified in places in Committee, and it will be open to those who can win an argument with the Committee to secure change.

I also express my thanks to my right hon. Friend for the constructive way in which she has approached the discussions. She is right to say that the regeneration of the Toton site will make a real difference to the east midlands. It is a huge waste at the moment, and I hope to see the project breathe life back into it.

[Mr Dennis Skinner (Bolsover) (Lab)]

The Secretary of State referred to the “good news”. This is not good news at all for people in Mexborough and various other places because of the vanity project idea of a station in Sheffield, which has resulted in the spur going straight through the middle of the Bolsover constituency. It is not good news in Newton, where 50 homes are likely to be affected. It is not good news at McArthurGlen in Ashfield, where they were going to increase the number of jobs by 1,000, which has now gone down the pan because of this new route—the so-called HS2 spur. The only decent news is for firms like Carillion, which has been involved in blacklisting. It is almost a mirror image of the current Tory party.

[Chris Grayling]

I know that the hon. Gentleman feels strongly about this project, which does affect his constituents. I have been clear in saying that it is not possible to build a project like this without affecting someone—whichever route we chose. In fact, if we had chosen the Meadowhall route instead of the M18 route, more properties would have been demolished. The reality is that we have to take decisions and ensure that we treat the people affected decently. I know that the hon. Gentleman will not agree with me or us about this project, but I assure him that we will seek to treat his constituents fairly.

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

When I predicted in 2013 that the cost of HS2 would balloon to £100 billion, I was wrong. It is clear that the project will end up costing the nation an awful lot more than that. Does the Secretary of State share my constituents’ concern? They would absolutely expect a Labour Government to wilfully and neglectfully waste taxpayers’ money, but they despair at seeing a Conservative Government do exactly that with this project.

[Chris Grayling]

I know that my hon. Friend also feels strongly about this project, but I remind him that HS2’s purpose is to deliver additional capacity in our transport system. It will create the opportunity to double the number of peak-time seats into Leeds, Manchester and Birmingham, and there will be a huge increase into London Euston. It will provide the opportunity for more freight to move off the roads and on to rail. That is what this is all about.

I have heard a lot over the past 24 hours about numbers. The project has a budget of £55.7 billion. This country has a decent track record of late of delivering projects on time and on budget, and I am confident that that is what will happen this time. As far as I can see, those who appear to be telling a different story have no involvement in the project and little direct knowledge of it.

[Yvette Cooper (Normanton, Pontefract and Castleford) (Lab)]

Will the Secretary of State confirm that he has once again dismissed proposals for cut and over or other adjustments to the route around Normanton? For all the effort and energy that he has put into looking at alternatives for south Yorkshire, he has not looked at alternatives for West Yorkshire. We have no station between Sheffield and Leeds, and many people will see the costs of the development, but not the benefits. In Normanton, for example, despite being less than 20 minutes from Leeds, we have only one train an hour and will not benefit from any of the shift in capacity that he has talked about. Is he not concerned that his approach to HS2, because of its focus on cities, not on any of the links to towns, will only widen the serious gap between cities and towns in this country, which is becoming even more serious than the divide between north and south?

[Chris Grayling]

The first thing to say is that we have taken a lot of care to try to put mitigation measures in place, and the movement of the depot from Crofton is a case in point. I have looked to try to change the configuration of the route around Barnburgh, and I have been up there myself to look at the locations. I am sure that the right hon. Lady will make further representations to the Committee that considers the Bill. If she looks at the challenges facing the rail network in the north, she will see that it is not about the lines that have lots of stations; it is about the fact that the links between our major cities are caught up by slow trains. A fast train from Leeds to Manchester across the Pennines is not possible because of all the stations in between, and councils and representatives in the north have been calling for better, faster links between our northern cities, and this project will do that job between Sheffield and Leeds. One reason why I am attracted to the link between Sheffield city centre and Leeds city centre is to provide fast connections between the two.

[Ms Esther McVey (Tatton) (Con)]

rose—

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[Ms McVey]

Good choice, Mr Speaker.

I appreciate that the Secretary of State is seeking to be decisive, but my constituents in Tatton are deeply concerned by what they hear in the media. Will he ensure that my constituents, and I as their representative in Parliament, will be fully involved in the decisions that will hugely affect them, and that he and High Speed 2 will not ride roughshod over their legitimate concerns?

[Chris Grayling]

This is my first opportunity to welcome my right hon. Friend back to the House. I am delighted to see her, and she will know that, of all the constituencies in the country apart from my own, I know hers well. I used to live there, and I understand the impact on local communities. I give her an assurance that we will do everything we can to be sensitive to the concerns and needs of those communities. As I said earlier, such a project cannot be delivered without it impacting on some people. I know the route through her constituency very precisely, and I can assure her that I will continue to work with her to make sure we minimise the impacts to the maximum degree we can.

[Sir Kevin Barron (Rother Valley) (Lab)]

Between 2013 and 2016, a station at Sheffield Meadowhall was preferred by HS2. Sir David Higgins told me at an MP consultation meeting a few months ago that the station did not go ahead because there was no consensus on Sheffield City Council to build it. The Secretary of State will have seen today’s publication of the consultation on the M1/M18 route that goes through three of my villages, which was 15:1 against—a lot of people support Meadowhall. Why do we spend money on consultations if that is the case?

The Shimmer estate at Mexborough was mentioned earlier, and it is estimated that quite a number of houses there will have to come down. On the Broadlands estate at Bramley in my constituency—the estate I live on—at least 81 houses are within 100 metres of HS2, and on the other side is the M18 motorway. The route will be devastating for the constituency, yet HS2 always denies the number of houses that will be affected.

Secretary of State, if HS2 is saying that fewer houses will be affected on the Meadowhall route—I defended that route, which goes through my constituency, too—it is not the truth. I put it in Sir David Higgins’s hands months ago, and he still will not give me a figure for what would happen at Meadowhall.

[Chris Grayling]

We worked through the decision between the two routes very carefully. It is the case that more houses would be demolished on the Meadowhall route than on the M18 route, but the key point is that I have taken careful advice from the team working on this, and I have considered the different options. The towns and cities to the west of south Yorkshire prefer one route and the towns and cities to the east of south Yorkshire prefer another. We have tried to take a balanced decision based on what we think is in the best interests of the country. I have given an assurance to the people affected, and I echo it to the right hon. Gentleman’s constituents, that we will seek to do the right thing by them. I understand that a project like this is difficult. We need to take decisions in the interest of the country, and we then need to do everything we can to look after those affected.

[Philip Davies]

There are many people, including in Yorkshire, who think that HS2 is a huge waste of money that could be better spent on infrastructure projects elsewhere in the region. He was bullish about the total figure that HS2 will cost. Will he therefore put a cap on the cost to make sure it does not overrun in the way some people think? At what point does he think HS2 will become too expensive? Or does he support this project whatever its ultimate cost?

[Chris Grayling]

As the Treasury is paying the bill—

[Mrs Gillan]

Taxpayers are.

[Chris Grayling]

The taxpayers are paying the bill, but believe me the Treasury keeps a pretty careful watch on public spending and I have no doubt that it will be keeping a very weather eye on those costs, as will all the various bodies that look at public procurement projects and public construction projects. We have a good recent track record in delivering major projects on time and on budget—people have only to look at Crossrail to see that. We should be self-confident as a nation and say that we can do this. Why would it be the case that other countries can deliver projects such as this and for us to think we cannot—I think we can.

[Mrs Louise Ellman (Liverpool, Riverside) (Lab/Co-op)]

The strength of HS2 is about expanding the capacity of the rail network as a whole, so will the Secretary of State give me an absolute assurance that Liverpool will be directly connected to a new high-speed line and also to Northern Powerhouse Rail?

[Chris Grayling]

As the hon. Lady knows, Liverpool is one of the cities that will be served from the start by HS2 trains. When we have finished the Golborne link, I expect that in the end to become part of the connection that becomes Northern Powerhouse Rail, but I am waiting for Transport for the North to bring forward its detailed proposals. My view is that Liverpool will benefit enormously through reduced journey times, but I also expect it to be part of Northern Powerhouse Rail. As she knows, I know the city well and I am keen to make sure it benefits from the investment we are putting in.

[Maggie Throup (Erewash) (Con)]

Although I welcome the clarity that today’s announcement brings to residents of Long Eaton, Sandiacre and Stanton Gate in my constituency, and the extension of the rural service to the south of Long Eaton, some of my constituents who have lived in their homes for 40 years or more are being offered only two thirds of the value of their homes and cannot afford to buy another home. As HS2 will be of great benefit to the whole nation, does my right hon. Friend agree that nobody should be worse off as a result of it?

[Chris Grayling]

I do agree, and I am very grateful to my hon. Friend and to the people of Long Eaton; as she knows, we have had a long discussion about whether we should have a high-level embankment or a low-level one, and I hope the solution we have reached is one that her community will support. I am clear that I do not want people to lose out as a result of this, and I extend to the House the request that Members should come to tell me if there are any places where there is a danger of that happening.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

Both Scotland and Northern Ireland have been awarded 100% Barnett consequentials from HS2, whereas Wales has had a 0% rating. With independent experts predicting a £100 billion or more cost for HS2, does the Secretary of State not recognise the inherent injustice of denying Wales its fair share?

[Chris Grayling]

If Members look at what we are doing now, they will see that we are in the process of modernising the signalling on the north Wales line. I am very clear that one beneficiary of the construction of HS2 will be north Wales, which will suddenly have significant additional capacity for services to London, Birmingham and elsewhere. This investment benefits everyone, by freeing up the capacity to deliver the services that they want.

[Antoinette Sandbach (Eddisbury) (Con)]

May I say to the Secretary of State that my constituents in Wimboldsley and Winsford will be devastated by this decision? As he has found an extra £750 million, which has been identified by the TerraConsult report as being needed to build over the salt plains of Cheshire, will he confirm that the environmental impact assessment will consider salt subsidence, which is hugely prevalent in this area, and that he will also dedicate £750 million towards the mitigation that will be needed in respect of the effects of raising the height of HS2 throughout the constituency?

[Chris Grayling]

We will attempt to make sure that we deliver mitigations where we can. It is worth saying that one question that has been raised is about the cost of this route relative to what counterparts in other European countries would spend, but we are, up and down this route, spending additional money on mitigations that other countries perhaps would not necessarily spend. That is an important part of finding the right balance between investment in infrastructure and trying to do the right thing by the communities affected. I know the concerns my hon. Friend has raised and I assure her that I will continue to work with her and her communities. The environmental assessment must look at these issues and of course when the Bill comes before this House the Committee concerned will also look at them. She and I will carry on working carefully together to make sure we deliver the right outcome—the best possible outcome—for her constituency, which will undoubtedly have parts that do not like what we are doing.

[Helen Jones (Warrington North) (Lab)]

The original justification for the Hoo Green to Bamfurlong spur was the siting of a stock depot at Golborne. The Secretary of State has confirmed today that that will be moved to Crewe and that he will develop the Crewe hub. The costs for that part of the line have been repeatedly questioned and the devastation it will cause to the two villages of Culcheth and Hollins Green in my constituency has not been taken into account in any economic assessment. Does he accept that this spur is now the whitest of white elephants and yet another example of the concentration of HS2 on big cities and the neglect of its effect on towns?

[Chris Grayling]

No, I do not, because the Golborne link is an important part of ensuring good connectivity for Preston, Lancaster, Carlisle and Scotland. If we are to deliver better connectivity to Scotland, we need the Golborne link so that the trains can use that route to reduce journey times as much as possible. I am afraid that I do not accept the hon. Lady’s point. I understand the reluctance in parts of her constituency to have this piece of the line developed. We will obviously do the right thing by the people affected, but this is an important part of delivering connectivity to the northern part of the country that would not otherwise happen in the same way.

[Jeremy Lefroy (Stafford) (Con)]

My right hon. Friend is already well aware of my constituents and my concerns over the route over the Ingestre salt marsh, but will he also consider putting some tunnelling back into the route through my constituency? The only bit of tunnelling that was there has now been removed, yet there are plenty of kilometres that could be tunnelled to avoid the impact on my constituents in Hopton, Marston and other places, including the Staffordshire showground. Will he also consider the impact on transport links across the region as the route in my constituency cuts across the A34, the M6, the A51 and several other A roads that are important for both regional and national infrastructure?

[Chris Grayling]

On the latter point, I can give my hon. Friend the assurance that we cannot end up with principal routes cut off. The environmental work we are talking about and the hybrid Bill Committee will consider the issues he mentions. I am happy to carry on talking to him about those options, but now, with the Committee, my hon. Friend and others have the opportunity to make the case to parliamentary colleagues about changes that might be necessary. That worked for the phase 1 Bill and the Committee will no doubt give careful thought to what he has discussed in the context of the phase 2 Bill. I will happily keep talking to him about his concerns.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

The Secretary of State might remember that I have been a consistent opponent of the project for a very long time. It was £20 billion as a Labour project, then it became a Conservative project and would cost £40 billion, and I was told that I was irresponsible for saying that it would reach £60 billion. It is very clear from the article in The Sunday Times only this Sunday that it will cost £100 billion and beyond. I believe that people who elected me and who vote for my party believe that that sort of national treasure should be invested in public services and the national health service, not in a technology—I hope that he will listen to this—that by 2033 will be as out of date as the canals were by the time the railways arrived.

[Chris Grayling]

If we roll the clock back 30 years, we were being told that about the rail network, and large chunks of it were closed. I now have hon. Members from all over the place saying, “Can we reopen it?” I am afraid that I do not accept the argument that in 10 or 15 years’ time the railways will be redundant. If we are going to maintain a balance between our roads and rail system for transport around the country, we will need investment in both. That is what this is all about. I would simply say to the hon. Gentleman that I accept his view, but I thought the stuff I read in The Sunday Times yesterday about cost was absolute nonsense, coming from somebody with no involvement in the project.

[Michael Fabricant (Lichfield) (Con)]

Lichfield has been blighted twice by HS2, first by phase 1 and now by phase 2a. Farms are facing devastation in my constituency, with quarries being planned for them under phase 2a. Will the Secretary of State confirm that they can appeal through a petition? His predecessor said that the whole rationale for HS2 was congestion, but is it not the case that most of the congestion is south of Birmingham? I do not believe that phase 2a and phase 2b are necessary. It would save this nation money and I can tell the Under-Secretary of State for Transport, my hon. Friend the Member for Blackpool North and Cleveleys (Paul Maynard), who is on the Front Bench, that this legislation certainly will not have my support when it comes to a vote.

[Chris Grayling]

My hon. Friend talks about congestion; he should see the communications that I receive from people in Manchester and Leeds saying, “Our trains and railway lines are full; we need more capacity.” And, for example, our new colleague, my hon. Friend the Member for Stoke-on-Trent South (Jack Brereton), is keen to see additional services from Stoke to Birmingham. If we are to have new capacity to deliver new services, we need a bigger network; that is what this is all about. I am absolutely clear that people will have the right to petition and to express their views to the Committee; that is the right and proper process to follow.

[Stella Creasy (Walthamstow) (Lab/Co-op)]

The Secretary of State will have heard the concerns from across the House about the costs of this contract and the companies involved in the consortium, including Carillion, which has made its profits from the frankly over-inflated rates of return on private finance products. Can he confirm that the contract has been awarded under the auspices of the Private Finance 2 pipeline? Under whatever auspices it has been awarded, will he commit to publishing the guidance that his Department used to undertake the value-for-money assessment for this contract?

[Chris Grayling]

I can give the hon. Lady an absolute assurance that when it comes to letting contracts, we are not taking the same disastrous approach to private finance as the Labour party did, which led to the huge deficits that brought parts of our national health service into a state of financial chaos. We follow a value-for-money approach that is vetted by the Infrastructure and Projects Authority and the National Audit Office. These are value-for-money public contracts to deliver an essential project for the nation.

--- Later in debate ---

[Alec Shelbrooke]

Bringing some brightness to this late hour.

May I say to my right hon. Friend the Secretary of State that the jobs bonanza that will come with moving the depot to Stourton is hugely welcome to Leeds, the Aire valley and my constituents? On the conversation that I had with the Exchequer Secretary to the Treasury, my hon. Friend the Member for Harrogate and Knaresborough (Andrew Jones), and on the tunnelling that will take place under Woodlesford, has the Secretary of State given consideration to the site on which the depot will sit? Has he considered putting all the tunnelling equipment and the spoil on brownfield land, so as to minimise the disruption to my villages of Woodlesford and Oulton, and the traffic around them, during construction?

[Chris Grayling]

My hon. Friend makes an interesting suggestion that I will pass on to the HS2 team. I am very glad that he supports this alternative site; I think it is the right one, and that people further south will welcome the decision. I have sought, having visited all the route, ways of minimising the impact, but as I said earlier, there are inevitably consequences of a project on this scale.

[Mr Clive Betts (Sheffield South East) (Lab)]

May I ask the Secretary of State for a clarification and about a point of omission? On the clarification, he referred to the electrification of the line north of Sheffield to Leeds. Will he confirm that the cost of that is provided for in the decision? Paragraph 2.7.62 of the Department’s report talks about the possibility of bimodal trains operating north of Sheffield if the line is not electrified. On the omission, the biggest challenge to his decision is the lack of capacity at Sheffield Midland station. His departmental officials have confirmed that there is capacity for only two trains an hour, yet the proposal is for two HS2 trains from Sheffield to London, two from Leeds to Birmingham through Sheffield, and hopefully more trains from Sheffield to Manchester as part of Northern Powerhouse Rail. How will he deal with that lack of capacity? Where is the money coming from?

[Chris Grayling]

As we get towards the opening of this part of the route in 2033, we will have to make sure that the necessary capacity is available, but as the hon. Gentleman knows, this is the route that Sheffield City Council has argued for. I have accepted that argument. We will have an electrified route that links HS2 and Leeds via Sheffield; that is really important.

[Mr Speaker]

Andrew Percy.

[Andrew Percy (Brigg and Goole) (Con)]

Thank you, Mr Speaker; again, a good choice. I am a huge supporter of HS2; it is absolutely needed for the north of England, as is HS3. However, as the Secretary of State knows, my preference has been for the Sheffield Meadowhall option, which would carry more regeneration benefits for south Yorkshire and the Humber. Given that that has been ruled out, when will we get a decision on the parkway station and its location, and how will we ensure that the rest of south Yorkshire outside Sheffield, and the Humber, benefit from this investment?

[Chris Grayling]

We are doing the work on the parkway station at the moment, and I am interested in getting the views of my hon. Friend and others on how that might best work. Regarding his constituency, I am waiting for Transport for the North to come forward with its proposals about how to create the connectivity that is in Humberside in the rest of Yorkshire. That is the essential part of the process.

[Laura Smith (Crewe and Nantwich) (Lab)]

Will the Secretary of State please confirm to my constituents in Crewe and Nantwich that the hub will be situated at the current Crewe station? Will he also confirm how many stops there will be? Crewe will welcome this if Crewe and the workers in Crewe will benefit from the station, but we need to know that we are getting the right number of stops and that the hub will be in the centre of our town.

[Chris Grayling]

The answer is that I expect the Crewe hub to be at the current Crewe station. There is huge potential there to develop a much better centre, a much better station and much better capacity around the station. Service patterns will be sorted out in the future, but I expect there to be a regular service, and much better connections to north Wales and elsewhere.

[Several hon. Members rose—]

[Simon Hoare (North Dorset) (Con)]

I stand as Hobson’s choice, I think, Mr Speaker.

Huskisson and his predecessors will have heard many of the concerns about the Victorian railway network as proposed about this village, that village or the other. He and his colleagues wisely proceeded, and the benefits of economic growth and job creation from the Victorian rail network were very clear. Will my right hon. Friend reflect on the important statement made by the shadow Secretary of State? Notwithstanding the parliamentary arithmetic, he provided the support of the official Opposition for this project, understanding and realising the important economic benefits that the proposal brings to the whole United Kingdom. That is to be underscored and welcomed at any time, but particularly in a post-Brexit environment.

[Chris Grayling]

My hon. Friend is right. In the event that I am still Transport Secretary when the first train runs, I do not plan to emulate Mr Huskisson by standing on the track in front of the train as it arrives.

I am grateful for the cross-party support. I know that individual Members on both sides of the House have constituency problems or principled concerns about the project, but the fact is that the project was proposed by both parties back at the end of the last decade. It was first put on the table by the last Labour Government and has commanded cross-party support. I hope that will continue because both parties understand the benefits the project can bring to the whole country. I hope we can work together to ensure that we deliver this Bill, the next one and the whole project. I am grateful to the shadow Secretary of State for the support he has given to it.

[Paul Girvan (South Antrim) (DUP)]

The Secretary of State has indicated that the project will generate jobs throughout the region, 60% of which will be in small and medium-sized enterprises. What practical measures are being given to small contractors in other regions—I am being a bit parochial—such as Northern Ireland? What opportunities could exist for them in such a project?

[Chris Grayling]

I have been very clear to HS2 and to our contractors that I expect them to work with small and emerging British companies, to develop apprenticeship programmes and to do the right thing by all our futures. That is an essential part of the project, which is an investment not just in our infrastructure but in our skills base. That skills base resides not just within the apprentices who will be working on the project, but in the small businesses that supply it. I want those small businesses to come from every part of the United Kingdom.

[Ruth Smeeth (Stoke-on-Trent North) (Lab)]

The Secretary of State has talked a great deal about my great city of Stoke-on-Trent, but he said in his statement that the service pattern “could” support an HS2 service to my city. Can he guarantee that we will retain our two fast trains to London per hour, as well as any potential classic-compatible trains?

[Chris Grayling]

Let me be very clear—indeed, my hon. Friend the Member for Stoke-on-Trent South (Jack Brereton) has already been lobbying me hard on this—that Stoke-on-Trent will be served by HS2 services and will see additional services connecting to other parts of the region as a result of the development. I see the future of the train service in Stoke-on-Trent as very bright. People in that great city will have access to more services as a result of the investment.

[Toby Perkins (Chesterfield) (Lab)]

In Chesterfield, we stand ready to take advantage of the opportunity created by the jobs at the new Staveley depot, which we welcome. We also very much welcome the suggestion that there will be a stop at Chesterfield. Will the Secretary of State build on the good news for us in Chesterfield by confirming that there will be stops at Chesterfield? The wording of the Bill is somewhat ambiguous. Will the project also necessitate the electrification of the midland main line south of Sheffield to Chesterfield and beyond?

[Chris Grayling]

I can confirm that Chesterfield will have a service on HS2. I can also confirm that the HS2 route through Chesterfield and Sheffield to Leeds will have to be electrified so those trains can run through to Leeds. I also think that when Northern Powerhouse Rail is developed, the route north of Sheffield will become a very important part of it.

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

At a line-of-route briefing last week with MPs from Yorkshire and the midlands and me, I was dismayed to see that the HS2 chief executive officer, Sir David Higgins, roundly dismissed all the genuine concerns about lack of engagement and the failure of project staff to empathise with residents. In fact, when I raised the issue of Wells House Road in my constituency, he said it should have been bulldozed at the start. I have heard what the Secretary of State has said to my hon. Friend the Member for Nottingham South (Lilian Greenwood) and others, so could he urgently step in and act as Relate, if necessary, to help repair what looks like a complete breakdown in relations between my constituents and HS2?

--- Later in debate ---

[Chris Grayling]

I cannot comment on the original individual conversations. I simply repeat the point I made earlier that my door and the Minister’s door will be open to any Member from any part of this House who is concerned that their constituents are not being treated properly as part of this project.

[Christian Matheson (City of Chester) (Lab)]

I welcome the focus of the statement on the Crewe hub and its importance to the wider area of Cheshire and the north-west, but may I press the Secretary of State on some details? In the statement, he talks about the importance of HS2 to the whole country, but he also talks about the Crewe hub requiring national and local government to work together, which suggests that we in Cheshire will have to make a contribution that other parts of the country will not. Since this is such an important part of the economic development plans of Cheshire, the wider north-west and the cross-border area, will he confirm that he will not be asking local authorities to contribute, because of the benefit the hub will bring to my area?

[Chris Grayling]

The Crewe station site has the potential to be much more than just a station. There is a big regeneration opportunity for Crewe around that site, and it goes far beyond the provision of rail access. Inevitably, that needs to be something we work with the local community and local authorities on. I am very excited about the potential for Crewe station: if we look at the redundant land, particularly to the west, we see huge capacity for a massive and really important redevelopment project for the whole town of Crewe.

[Mr Paul J. Sweeney (Glasgow North East) (Lab/Co-op)]

The Secretary of State will know that, in May 2015, HS2 Ltd decided that there was no credible business case for extending a dedicated high-speed rail link north of Manchester to Glasgow. Given the announcement today, will he consider the merits of extending a dedicated high-speed rail link to Glasgow, given that a classic-compatible train without tilting capability will actually increase journey times between Manchester and Glasgow? That is unacceptable.

[Chris Grayling]

As I said earlier, our goal is to work to deliver that three-hour journey time we talked about, and that has the effect of bringing high-speed rail to Scotland. We have to use taxpayers’ money wisely, and we have to find the right balance in this project, but I want this project to work for Scotland as well, and I will do everything I can to make sure that happens.

[Susan Elan Jones (Clwyd South) (Lab)]

The Secretary of State will be aware that local authorities in north Wales have been very supportive of HS2, but please can he assure my constituents that there will be good train links between the Crewe hub and the Wrexham area, because that is very important for us all?

[Chris Grayling]

I absolutely expect that to be the case. Of course, the benefit of taking the current express trains off the main line is that it provides the opportunity for better services from north Wales to other parts of the country, so those services in north Wales are one of the potential real beneficiaries of this.

[Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)]

May I start by saying to the Minister—[Interruption.] I have not even got there yet. The Minister may feel the need to hand out party political trinkets to the new hon. Member for Stoke-on-Trent South (Jack Brereton), who is not in his place. In doing so, he does not cause a problem for me or my hon. Friend the Member for Stoke-on-Trent North (Ruth Smeeth), but he undermines the good work done by Sara Williams and the Staffordshire chamber of commerce, who have been lobbying on this matter for a number of years—long before any of us were elected to this place, and that belittles the Minister in this place this evening.

The Secretary of State has said that there “could be” support for having HS2 in Stoke-on-Trent. That is not a commitment that my constituents can base any real decisions on. Could he confirm that, as was asked by my hon. Friend the Member for Stoke-on-Trent North, the number of fast trains running from Stoke-on-Trent to London—London, and not another part of the region —will not be diminished by this announcement? Could he also confirm that capacity for freight transport on the west coast main line will not be diminished through making space for classic-compatible trains? As the hon. Member for Stafford (Jeremy Lefroy) asked, could the Secretary of State make it clear that the pain that Staffordshire feels will have economic gains, because without that he will struggle to get our support in the vote?

[Chris Grayling]

I met my hon. Friend the new Member for Stoke-on-Trent South (Jack Brereton) today to talk about the need to make sure that there is an HS2 service for Stoke-on-Trent, and I have given him that commitment. [Interruption.] Labour Members may chunter, but I remind them that my hon. Friend has been the transport spokesman for the ruling group on Stoke-on-Trent City Council, so he is eminently well qualified to make this case, and is already doing a first-rate job as representative of the Stoke-on-Trent South constituency. I have been pleased to give him a commitment about the services for Stoke. I am also pleased to give the hon. Member for Stoke-on-Trent Central (Gareth Snell) a commitment that the whole point about HS2 is that it frees up capacity for these extra freight services and extra local passenger services. That is one of the reasons we are doing it.

[Chris Williamson (Derby North) (Lab)]

I am grateful to the Secretary of State for confirming in his response to my hon. Friend the Member for Chesterfield (Toby Perkins) that the midland main line will be electrified, but we have been waiting for as long as I can remember for that to happen, and led up the garden path on numerous occasions. Will he therefore, for the record, give us a date when the midland main line south of Sheffield through into London will be electrified?

[Chris Grayling]

We are talking about the ability to run an electric train from London, up HS2, around the route into Sheffield Midland, and back up to Leeds. I have given a very clear commitment that that will be the case. As I have said in this House before, the next stage of electrification of the midland main line is currently under way. I have also said that my big priority is to deliver for the people on that line the service improvements they want as quickly as possible, and that is what I am seeking to do.

Oral Answers to Questions

Lord Grayling Excerpts

Thursday 13th July 2017 Commons Chamber

[Michael Tomlinson (Mid Dorset and North Poole) (Con)]

11. What steps he is taking to provide funding for large local major transport projects.

[The Secretary of State for Transport (Chris Grayling)]

Before I start, may I welcome the new members of the Labour Front-Bench team to their positions? I also congratulate the new Chair of the Select Committee on Transport, the hon. Member for Nottingham South (Lilian Greenwood), on her success in the election yesterday.

Under the large local majors programme, the Department has already given two schemes the go-ahead. We are currently looking at the case to approve up to four more and are funding development of a further 13 schemes that will be considered in the near future. Last week, we announced the creation of a major road network that will enable an even greater number of local road improvement projects to come forward. The details of that scheme will be consulted on later this year.

[Luke Hall]

The road to nowhere in Yate was built in the 1970s and was abandoned. It is now used as a film set. Does my right hon. Friend agree that the road should be reopened? What financial assistance is his Department making available for projects such as that, which would dramatically reduce congestion in Yate?

[Chris Grayling]

Having walked the road to nowhere with my hon. Friend, I rather agree that it would be better if it had genuine motorists on it, rather than ones in soap operas. I hope that he will continue to encourage his local enterprise partnership and others to bring forward proposals for that road. Through the growth fund, we provide support for schemes such as that. The scheme may also be eligible for consideration as part of the major road network, depending on the connectivity at either end, but I commend him for his work on the issue. I rather agree that it would be better if the road were open for motorists.

[Michael Tomlinson]

As you know, Mr Speaker, Dorset is a wonderful place to live, work and visit, but Dorset’s roads, including the A350, north-south, and the A31, east-west, do become congested, especially in the summer months. What assurances can the Secretary of State give me and my constituents that major infrastructure projects in Dorset are a priority for the Government?

[Chris Grayling]

There are two ways in which I hope we can deliver support for my hon. Friend and his constituents. For those parts of the strategic road network that run through Dorset, Highways England is currently reviewing needs and looking at what the next generation of projects should be. There is also the creation of the major road network and the opportunity to develop far more bypasses. I think that will play an important role in places such as Dorset, where many towns suffer intensive through traffic and are not suited to such traffic.

[Ian Mearns (Gateshead) (Lab)]

Tyne and Wear Metro customers are affected daily by failing trains; it has the lowest performance level of any equivalent system in the UK; that includes the oldest rolling stock on the London underground. That is largely due to the fact that the metro is well past the 35 years for which it was designed. Is the Secretary of State aware of the situation? When will he provide the funds to replace the fleet?

[Chris Grayling]

I congratulate the hon. Gentleman on his re-election as Chair of the Backbench Business Committee. I am well aware of the issue that he has raised. I recognise the importance of the metro to Newcastle and the Newcastle area. I am pleased that, in the last few years, we have put several hundred million pounds of investment into the network. My Department is looking very carefully at what the best options are. I understand the need to make changes, so that the metro can carry on serving people in the way it has in the past.

[Nick Smith (Blaenau Gwent) (Lab)]

Will the Secretary of State commit to supporting the Welsh Government’s plans by providing a comprehensive funding package for the South Wales Metro?

[Chris Grayling]

Of course, central Government are providing a substantial contribution to the South Wales Metro. I have also extended an offer to the Welsh Government to enable them to take over that infrastructure, so that they can run a truly integrated service on that route. I am waiting with interest to see what plans they bring forward to make that vision a reality.

[Theresa Villiers (Chipping Barnet) (Con)]

It is 30 years since Crossrail and the Thameslink upgrade project were first proposed. Does my right hon. Friend welcome the fact that it is a Conservative Government who have seen those projects make such progress towards completion in a few months?

[Chris Grayling]

My right hon. Friend is absolutely right. I am very excited by Crossrail, not only because of what it will deliver for London but because it is the biggest engineering project of its kind in Europe. I hope that we will be able to build on that expertise, and that UK plc will take advantage of what has been done by winning contracts internationally. When it opens next year, Thameslink will make a real difference to passengers to the north and south. I am proud of what we are achieving.

[Laura Pidcock (North West Durham) (Lab)]

I thank the Secretary of State for coming to my constituency during the general election campaign. What does he intend to do about the terrible transport infrastructure investment and the inequality that exists between London and the north-east, resulting in £1,943 per person being spent in London and just £220 per person being spent in the north-east? I do not begrudge London that investment, but people in North West Durham are as important.

[Chris Grayling]

I have never doubted that. Of course, the balance between regions will depend on what projects are happening at the time. The hon. lady will have seen in our manifesto the commitment to the northern powerhouse rail programme, which will mean a significant change in the balance. I am waiting for Transport for the North to come forward with its recommendations on the form that should take. There are other benefits for her constituency. It will see the arrival in the very near future of a new generation of express trains on the east coast main line, which will be vastly better than her constituents have at the moment.

[Ms Nusrat Ghani (Wealden) (Con)]

The Gibb report put forward a solid business case for the electrification of the Uckfield line, which runs through my constituency of Wealden. Will the Secretary of State meet me and local campaigners to get this project on track?

[Chris Grayling]

I am very happy to meet my hon. Friend, and I absolutely recognise the issue. The other part of deliberations around the Uckfield line is the private-sector proposal, which I have said we will happily look at, to create BML2—the Brighton main line 2. We should look at all these things in the round and ask what is the best future for that route, but I am very happy to meet my hon. Friend.

[Mr Dennis Skinner (Bolsover) (Lab)]

Why does not the Secretary of State for Transport tell his friends that some of these so-called projects are pie in the sky from a Government who are already committed to spending more than £80 billion on High Speed 2, under which there are going to be two tracks through Derbyshire—not one, but two: one a slow track and one a fast track? Why does he not get real and understand that there should be a reassessment of HS2? He only has a tiny majority, and believe me, a lot of Members on both sides of this House are fed up with the idea of spending money in the far distant future on HS2 when there are all these projects on today’s Order Paper on which they want action.

[Chris Grayling]

I am very surprised that the hon. Gentleman is opposing a scheme that will deliver capacity improvements and journey improvements between the great cities of the north, and link Birmingham to Manchester, Nottingham, Sheffield and Leeds, and that will make a real difference economically to the areas he represents. It is a project that is overwhelmingly supported by those who represent those communities in the north.

[David Linden (Glasgow East) (SNP)]

2. What recent discussions he has had with the Home Secretary on the potential effect on passenger capacity at airports and ports of the UK leaving the EU.

[The Secretary of State for Transport (Chris Grayling)]

My Department is working closely with a number of other Departments, including the Home Office, to ensure that ports, airports and other transport operators are fully prepared for when we leave the EU. I am committed to putting passengers at the heart of our transport policy, and that will certainly apply to the arrangements that exist when we leave the EU.

[David Linden]

Brexit will present profound challenges for immigration at our ports and airports, but the Tourism Industry Council forecasts that there should be a 200% increase in resources for the UK Border Force while in effect there has been a 15% cut, despite an 11% increase in passenger numbers. How does the Secretary of State square that circle, and how can we ensure that we will have passenger safety after Brexit?

[Chris Grayling]

Our ambition after Brexit is to have borders that function as closely as possible to the way they currently do. We do not want to deter tourists or businesspeople from coming to the country. Having a managed migration system does not mean that we suddenly have to create barriers to tourists, and that is not our intention.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

The Secretary of State did not provide any substance in that answer on the discussions he is having. Some 23 million inbound passengers from the EU pass through UK airports each year, and they are processed quickly using special lanes and scanning. What funding has the Secretary of State identified is required for infrastructure and resources to avoid queues for those coming here? He might also be aware that the EU is planning an ESTA-type visa system for non-EU citizens, so has he had discussions about the impact of that when the UK leaves the EU?

[Chris Grayling]

Of course, we have discussions all the time across the Government about post-EU exit arrangements—we had a Committee meeting to that effect yesterday—but as I said to the hon. Member for Glasgow East (David Linden), it is not our intention or desire to erect barriers at the borders, for tourists arriving, for example. Indeed, we are investing in things like automated gates to speed the flow through our borders, and we will carry on doing things like that.

[Alan Brown]

Another potential impact on passenger capacity is the negative impact if the UK does not remain part of the open skies agreement. That is very important for regional airports such as Prestwick, adjacent to my constituency. The Prime Minister said this week that she had discussions with President Trump on open skies, but can the Secretary of State provide an assurance that the UK will remain part of open skies and the single aviation market?

[Chris Grayling]

I can give the hon. Gentleman an assurance that I am absolutely confident that after we have left the EU there will be an open skies agreement with the United States. I have had discussions with my US counterpart; there is an absolute desire on both sides of the Atlantic to make sure that the aviation arrangements remain as they are at the moment.

[Karl Turner (Kingston upon Hull East) (Lab)]

Can the Minister clarify that on leaving the EU we will remain members of the European Aviation Safety Agency, so as to maintain and grow our passenger capacity in accordance with our economic needs?

[Chris Grayling]

Obviously the details will come out in the negotiations, but we want to continue to collaborate with our European partners on air safety issues, just as we do with other organisations around the world, such as the US Federal Aviation Administration, and I see nothing to suggest that that will change after we leave.

[Karl Turner]

But have we not already seen this Government’s shocking acceptance of departing from EASA safety standards by condoning the wet-leasing of Qatar Airways services to replace the poverty-paid British Airways mixed-fleet crews, in which the substitute crews’ hours will not be subject to the safety standards prescribed by EASA?

[Chris Grayling]

I am sure that all the international airlines that operate into and out of the United Kingdom maintain proper safety standards. They are subject to regulation at European and international levels, and they would not be able to use UK airports if we were not confident that they were safe airlines to fly with.

[Mr Speaker]

I call Lloyd Russell-Moyle. Not here. I wish he were here. I hope the fellow is all right. Anyway, we move on. I call Rachel Maclean.

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[Tonia Antoniazzi (Gower) (Lab)]

5. What steps he is taking to electrify the rail network to Swansea and further west.

[The Secretary of State for Transport (Chris Grayling)]

I congratulate the hon. Lady on her election to this House. Electrification work is continuing on the Great Western main line, but the good news for her constituents and others in south Wales is that the new generation of electric trains will arrive in Cardiff and Swansea this autumn, providing more seats and better journey experiences. That is good news for rail users in south Wales and the west country.

[Tonia Antoniazzi]

It has been reported that the Secretary of State is preparing to announce yet further delays to the Great Western main line electrification programme, and my constituents in Gower are fed up with the contempt that the Government continue to show them on investment. The Secretary of State has said that the programme will happen, but will he promise that it will not be delayed any further? We need to make Swansea the gateway to west Wales.

[Chris Grayling]

I appreciate the importance of transport to Swansea, and that is precisely why I am doing what the hon. Lady’s constituents will want, which is to deliver them a better journey experience not in several years’ time but this autumn. They will have a new generation of trains that will provide much better journeys to London, which is exactly the kind of service they want. When the first new train comes to Swansea, I hope that she will be there to see it and will realise what a difference it will make to her constituents’ rail journeys in south Wales and elsewhere.

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

I congratulate the Secretary of State on moving ahead with the electrification of the rail line into south Wales and through Swansea. I remind him that the electrification of the railway as far as Swansea was announced by a Conservative Secretary of State, and that the Labour Government did not electrify a single inch of the rail lines in Wales to improve the Welsh economy.

[Chris Grayling]

If I remember rightly, the Labour Government electrified only 10 miles in 13 years. My right hon. Friend will understand that we have to ensure first and foremost that we are delivering better journeys for passengers, and I am pleased that this autumn’s changes and the new trains arriving in Swansea and other parts of south Wales will lead to an immediate improvement in passengers’ journeys. That is what they really want.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

In order to make the most of the benefits of electrification in south Wales, we need new stations to take advantage of capacity on the line. The proposals for St Mellon’s parkway in the east of Cardiff are good, and they are backed by the private sector, the Welsh Government and Cardiff Council and have cross-party support. When can we expect a decision about money from the new stations fund?

[Chris Grayling]

I also think that that is an interesting proposal, and it does not actually need quite the same mechanism of approval as a station built with public funding. I am happy to see the project go ahead. The real issue is ensuring that it can work with the timetables, so that trains can stop and the service can work. As a private sector-funded project, if it is practical, I can see no reason why any of us would do anything other than support it.

[Diana Johnson (Kingston upon Hull North) (Lab)]

6. What steps he is taking to balance the distribution of transport infrastructure investment between London and other regions.

--- Later in debate ---

[Mr Speaker]

Order. Just because the King of Spain visited yesterday and the hon. Gentleman felt it necessary to show off his language skills on that occasion, there was no need for him to do so again, but he obviously felt the need, and we have all seen what an edifying spectacle it was.

[The Secretary of State for Transport (Chris Grayling)]

All three of us have taken part in business questions, so I am sure that you were not totally surprised by that contribution, Mr Speaker.

On a serious note, I pay great tribute to the officers of the British Transport police and the staff of Northern Rail for the way in which they responded to the bomb attack in Manchester. The rail staff in particular, whose job description that was in no way part of, responded heroically, and they deserve our thanks.

[Chris Bryant]

Thank you, Mr Speaker. I thought you might have picked something up from the Queen of Spain yesterday—[Interruption.] Some Spanish. I wholly concur with what the Secretary of State said about the staff in Manchester.

When the season of mists and mellow fruitfulness is upon us, may I urge the Secretary of State to come to the Rhondda to visit the Rhondda tunnel between Blaencwm and Blaengwynfi? That would be a magnificent tunnel if it were open for the public and cyclists to go through. It would be a great tourist attraction if only his Department would hand the project over to the local charity, and give it £250,000 as well.

[Chris Grayling]

I know that relations between the hon. Gentleman and the Labour party in south Wales can sometimes be slightly strained, but I am sure that he will use his influence on the Welsh Government, to whom we have offered to give the tunnel. They have not responded—I am waiting for their response—but it is there for them. Perhaps the hon. Gentleman could encourage them to give us a response.

[Philip Davies (Shipley) (Con)]

T3. May I ask the Secretary of State to sit down with the West Yorkshire combined authority to ensure that the Shipley eastern bypass, which is badly needed by my constituents and the local economy, is actually delivered, and that neither can blame the other for a lack of progress on it?

[Chris Grayling]

I regularly meet the combined authority, so I will happily discuss that issue with it. The creation of the major roads network and its bypass fund will, I hope, mean that in future we can unlock some of these schemes that will make such a difference to towns like Shipley around the country.

[Andy McDonald (Middlesbrough) (Lab)]

Two weeks ago today, the High Court gave the Secretary of State 14 days to make a decision over Southern rail’s claims that its appalling service was not its fault, but was all down to industrial action. With the record fine that has been imposed today, such nonsense has been totally blown out of the water. After months and months of the Secretary of State and his Ministers coming to the Dispatch Box and blaming the unions, they have had to come clean and accept that Southern rail is simply not fit for purpose. Does the Secretary of State now accept that continuing to tolerate such ineptitude—expecting a rail service to rely on workers’ overtime, and compromising safety and accessibility—simply will not wash any longer, and that he has to call time on Govia Thameslink Railway?

[Chris Grayling]

The hon. Gentleman clearly still has not read the judgment from two weeks ago in this case—a case that we actually won. Let us be clear about what is being done today. For months I have said that the problems on this railway are not purely down to industrial action; there are other reasons. I am very clear, and so is Chris Gibb’s report, that the prime responsibility for the trouble on that network in the past few months lies with trade unions fighting the battles of 30 years ago, and still they get support from the Labour party. The reality is that the Labour party and the unions are colluding to bring trouble to passengers, and it should stop.

[Andy McDonald]

rose—

[Andy McDonald]

Thank you, Mr Speaker.

We are missing appendix 9 from the Gibb report. Can we see it, and will the Secretary of State tell us which claims he accepts and which he rejects?

[Chris Grayling]

Today’s penalty has been for partial non-performance of contracts. The House and the country would expect me to impose penalties where they are needed and I have not sought to do anything otherwise. The reality is that, this afternoon, we expect the result of a ballot for yet further strike action for a 23.8% pay rise and a deal that has already been accepted by the ASLEF union on the same routes for the same company. This politically motivated set of threats of action should stop, and the Labour party should stop supporting it.

[Michael Tomlinson (Mid Dorset and North Poole) (Con)]

T5. For the first time in 45 years, there is a commercial rail service between Swanage and Wareham in my constituency, thanks to the dedication and hard work of the volunteers and members of Swanage Railway. What assurances can the rail Minister give that he will support our rail heritage and ensure that this trial becomes a permanent success?

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[Mary Glindon (North Tyneside) (Lab)]

T4. Will the Minster say whether the new rolling stock for Merseytravel, HS2 and Crossrail will be procured using private or public finance, and why that is the case?

[Chris Grayling]

There has been a long tradition, under Governments of both parties, of a railway where we lease trains from the private sector. There have equally been occasions, as in the procurement of railway carriages for the east coast main line and the great western main line, when the Government have stepped in and taken that decision. We will have to look at which packages are available for those individual schemes. In the case of Merseytravel, the hon. Lady will have to talk to the Labour-controlled Merseyside councils.

[Mr Speaker]

It is very good of the new Chair of the Select Committee on Education to drop in on us; we are obliged to him.

[James Duddridge (Rochford and Southend East) (Con)]

T7. With Southend airport booming, there are great opportunities for associated business parks and businesses around that expanding airport. Will the Secretary of State agree to look at how we can expand business around successful regional airports?

[Chris Grayling]

It is really important that we make sure that our regional airports are successful. My hon. Friend and I visited Southend airport a few years ago. I was very impressed by what it has achieved and the way in which it can be a driver of growth in the surrounding area. That applies across the whole country. It is one reason why the expansion of Heathrow is so important for regional airports further afield, and it is also why I hope that we will work together in a smart way to ensure that airports such as Southend flourish.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

We have had many flowery words from the Government about understanding the experience of our constituents in the north-east who are forced to use crumbling rolling stock on Tyne and Wear Metro, but flowery words will not get our constituents to work on time unless they are matched by investment. Will the Minister now commit to investing in our rolling stock from the public purse?

--- Later in debate ---

[Kerry McCarthy (Bristol East) (Lab)]

When the Chancellor came to Bristol in May, he refused to confirm whether electrification of the Great Western line into the city centre would go ahead. Will the Transport Secretary confirm whether it has been deferred, as we were told last year, or has it really been ditched?

[Chris Grayling]

As I said earlier, we are focused on delivering service improvements right now. The electrification process is continuing—there is no secret about the fact that this project has not gone as well as expected—but the key thing for the hon. Lady’s constituents is that, from this autumn, there will be brand-new trains, more capacity, a better service and six trains an hour from Bristol to London. This is really good news for her constituents.

[Ms Esther McVey (Tatton) (Con)]

T9. A number of my constituents are deeply concerned about the impact of High Speed 2—particularly residents in Ashley, who came to see me in a surgery last week. I am sure that you, Mr Speaker, will be pleased that I am not going to go through every point they raised with me, but could the Minister meet me to go through every concern they had?

[Daniel Zeichner (Cambridge) (Lab)]

When the Conservative manifesto was published, there was no mention of Crossrail 2. Will the Minister tell us whether that was by accident or design? When does he plan to make a decision on the business case?

[Chris Grayling]

First, I absolutely support the need for the capacity improvements that Crossrail 2 will bring to London—indeed, not just to London, but to areas outside. We are working our way through the business case. I do not think it is any secret that the Transport for London funding package has not quite lived up to initial promises, but I want this to work. I am seeing the Mayor next week, and we will do everything we can to make it work.

[Mrs Pauline Latham (Mid Derbyshire) (Con)]

Does my right hon. Friend agree that Belper, in my constituency, which is part of the world heritage site, is a great place to live, apart from the traffic? The A6 is far too clogged. Could we look at a bypass for Belper and at a new cycleway right up the Derwent valley?

[Alex Norris (Nottingham North) (Lab/Co-op)]

The Transport Secretary is due to outline his plans for rail investment in the coming days. There is real concern that the promised electrification of the midland main line, which has the best business case, will be delayed again or dropped completely. Keeping promises is important. Will Ministers be keeping theirs?

[Chris Grayling]

The promise I will be keeping is on the services that people want. We will be delivering, by around 2020, the faster journey times to Sheffield and the capacity improvements that are needed to make this route fit for purpose for the next century.

[Steve Double (St Austell and Newquay) (Con)]

Will the Minister join me in congratulating Michelle and Mark Williams, who run the C&C taxi firm in St Austell? They have recently replaced all 14 of their diesel vehicles with electric vehicles. Theirs has been hailed as the greenest taxi firm in the country. Does he agree that more taxi firms should follow their example?

Aviation Update

Lord Grayling Excerpts

Thursday 13th July 2017 Written Statements

[The Secretary of State for Transport (Chris Grayling)]

In October 2016, the Government selected a new north-west runway at Heathrow as its preferred scheme for delivering new airport capacity in the south-east.

In February a consultation on a draft airports national policy statement was launched, which set out the reasons for this preference, along with the mitigation and compensation measures the Government expect the promoter to put in place if planning permission is to be granted.

The consultation closed on 25 May and the work to analyse the over 70,000 responses is progressing well. I would like to thank all of those who contributed their views.

The Government are fully committed to realising the benefits that a new northwest runway at Heathrow would bring, in terms of economic growth, boosting jobs and skills, strengthening domestic links and critically, increasing and developing our international connectivity as we prepare to leave the European Union.

The timing of the election, in particular the need to re-start a Select Committee inquiry into the draft airports NPS means we now expect to lay any final NPS in Parliament in the first half of 2018, for a vote in the House of Commons.

I will provide a further update to the House after the summer recess on our next steps following analysis of the consultation responses.

Today I am also publishing a response to the consultation held earlier this year on a new night flight regime for Heathrow, Gatwick and Stansted. I am fully aware that noise is a major concern for those living near these airports, and that night noise is widely regarded as the most disturbing impact of aviation. While advances in new technology mean that aircraft are generally getting quieter, the limits governing night noise at these airports has not kept pace with these developments.

The new rules we are publishing today will encourage the use of quieter aircraft at all three airports by reducing the amount of noise these airports are legally allowed to make, and will give local residents a five year guarantee about the level of noise that they will be exposed to. This decision strikes a balance between managing the impacts on local communities by locking in the benefits offered by recent technological developments, with the economic benefits of night flights.

This decision should be seen as a signal that the Government take this issue very seriously, which is why we expect a ban on scheduled night flights of 6.5 hours at an expanded Heathrow. We will also explore whether there is more we can do, including considering further legislation to incentivise the industry more generally to invest in the quietest aircraft and operate them in the quietest way.

Strong international links are critical to the future prosperity of our country, with a world-class hub airport and thriving aviation sector central to this. We are committed to realising the economic and social benefits aviation has to offer, while taking seriously the need to balance this with managing the local and environmental impacts of aviation.

[HCWS41]

Transport Investment

Lord Grayling Excerpts

Wednesday 5th July 2017 Written Statements

[The Secretary of State for Transport (Chris Grayling)]

We have made significant progress in realising our ambitious plans for transport infrastructure, built on the investment of over £61 billion in the five-year period to 2021. We have taken big decisions on transformational projects like HS2 and our preferred option for a new runway at Heathrow, and are part way through delivering major investment programmes to maintain and upgrade our road and rail networks.

I am today publishing a Transport Investment Strategy, setting out how we will build on that progress and—through the investment decisions we go on to take—how we will respond realistically and pragmatically to today’s challenges and deliver a transport network that works for everyone.

The decisions we take now will shape the transport network for decades to come and help to determine the contribution that transport can make to our national success and wellbeing. The Transport Investment Strategy describes what we are trying to achieve through our investment in transport infrastructure, the priorities and propositions that will guide future investment decisions, the institutional frameworks within which those decisions will be taken, and the actions we are taking to help meet our ambitions.

I want our investment to create a more reliable, less congested and better connected transport network that works for the users that rely on it; to build a stronger, more balanced economy by enhancing productivity and responding to local growth priorities; to enhance our global competitiveness by making Britain a more attractive place to trade and invest; and to support the creation of new housing.

As we shape and deliver the balanced investment programmes that deliver these objectives, we will be guided by a set of priorities and propositions that put the needs of transport users at the heart of decision making, whilst getting the best value out of the network and our investment, retaining a resolute focus on delivery and remaining adaptable in the face of change.

As part of the strategy I am announcing my intention to launch a consultation on the creation of a new “Major Road Network” for the most important local authority A roads. This would mirror the success of the Strategic Road Network which has created planning and funding certainty for motorways and major dual carriageways, and would mean our most important local authority A roads were actively planned and managed to deliver a better service for drivers. As part of this consultation, we will make proposals to allocate a proportion of the national roads fund to the MRN.

I am also determined that, through our investment, we should go further in helping to raise prosperity and productivity across the country. In the Industrial Strategy Green Paper, the Government committed to taking account of the balance of spending per head between different regions. In addition, we will develop a new assessment standard that will require transport investment programmes to be judged on how they contribute towards the creation of a more balanced economy, as part of the assessment of their strategic case.

I have placed copies of the document in the Libraries of both Houses.

[HCWS26]