Oral Answers to Questions
Chris Grayling Excerpts(5 years, 4 months ago)
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Mr Virendra Sharma (Ealing, Southall) (Lab)
The Secretary of State for Transport (Chris Grayling)
The UK Government and European Commission have agreed in principle that the two sides should negotiate a comprehensive air transport agreement. The Department is working closely with the aviation sector to ensure its requirements are factored into negotiations. The Department’s aviation technical notices and the European Commission’s published plans for aviation contingency preparations, alongside proposed EU regulations published on 19 December, clearly demonstrate that, in a no-deal scenario, both sides are committed to maintaining aviation connectivity.
Chris Grayling
I think that the aviation sector will continue to grow and develop as it has in recent years. We will continue to have connections across Europe, as we do at the moment, and, of course, with the plans for the expansion of Heathrow airport, there will be a real opportunity for apprenticeships in the sector and to open up new routes around the world, for example to emerging markets in Asia. I see the next 10 years as ones of great opportunity for the aviation sector.
Sir Desmond Swayne (New Forest West) (Con)
The EU’s contingency arrangements are welcome, but what estimate has the Secretary of State made of the prospects for airports such as Bournemouth that want to increase their routes to Europe over the next year?
Chris Grayling
The European Union has said that it wants to keep flights at the current levels, and I suspect that they will find that that is not a universally held view among member states.
Mr Speaker
Order. I listened to the right hon. Gentleman’s question with great interest. It was tangential to the substantive question, and I just say gently to him that I had been thinking of offering him an Adjournment debate on the matter, until I realised that he had, in fact, just conducted one.
Chris Grayling
Indeed he has, Mr Speaker.
I would simply remind the right hon. Gentleman of two factors. First, the disruptive attack at Gatwick was unprecedented anywhere in the world, and as a result we have been approached by airports around the world to learn more about how we tackled that. Secondly, as I have said, I am not able to discuss in the House the nature of the technology used for security reasons, but when a similar issue arose at Heathrow earlier this week, the response was very rapid indeed.
Colin Clark (Gordon) (Con)
Does the Secretary of State agree that regional air connectivity within the UK is a priority as we leave the EU? Can he remind operators such as British Airways that reducing routes from Aberdeen International airport in my constituency disrupts business and leisure travel?
Chris Grayling
I agree with my hon. Friend, and that is why we have put down a clear requirement that as Heathrow expands a proportion of its capacity is set aside for regional connectivity within the United Kingdom. It is really important that an expanded Heathrow is a gateway for the whole United Kingdom to opportunities around the world, as well as within the country.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
I chair the parliamentary air safety group, and I know a little about the aviation sector. During consideration of a statutory instrument upstairs recently, I challenged a Minister to tell me which chief executive or chair of any airline he had talked to about this subject. I have talked to them, and they are terrified of the impact of a no-deal Brexit. He could not name one.
Chris Grayling
I have talked to the chief executives of every major UK airline. I have also talked to representatives of a significant number of international airlines.
Christine Jardine (Edinburgh West) (LD)
As the Secretary of State has spoken to the chief executives, he will of course be aware of their concerns about the contingency agreement only allowing for a freeze in the services of British airlines as they stand at the moment . What reassurances can he give airports such as Edinburgh that this will not in fact be the case, and that expansion will happen should we have to leave the EU?
Chris Grayling
The hon. Lady says, “should we have to leave the EU”. The country has already voted to leave the EU and we will next week vote on an agreement that would continue current aviation arrangements. If she is concerned about the contingency plans put in place by the European Union, will she join the Government in the Division Lobby next week to support the agreement?
Jim Shannon (Strangford) (DUP)
Can the Secretary of State further outline discussions held with Belfast City and Belfast International airports to secure enhanced trading routes post March, and to evaluate what changes the airports may have to make?
Chris Grayling
I have had regular conversations with the leadership of the Belfast airports. Working with them in several areas, I want to see them expand their international flights. More flights are, of course, being planned for next summer, and I hope and believe that they have a strong and prosperous future with better links around the world.
Karl Turner (Kingston upon Hull East) (Lab)
The Prime Minister’s deal looks dead and we could well be heading into the chaos of a no-deal Brexit. If that is the case, we will no longer be a member of the European Aviation Safety Agency. Given that we do not currently have a bilateral air safety agreement with the US, can the Secretary of State give a guarantee that in the event of no deal there will be no disruption to flights?
Chris Grayling
Yes. The Civil Aviation Authority has been working for well over a year to ensure that in the event that we do not continue as a member of EASA we have a properly functional British alternative.
Alex Cunningham (Stockton North) (Lab)
Sandy Martin (Ipswich) (Lab)
The Secretary of State for Transport (Chris Grayling)
The Department has been working for some time to ensure that traffic can continue to flow through UK ports as frictionlessly as possible in all scenarios when we leave the European Union. This has included engaging closely with others across Government, and with ports and their representative bodies. As regards ferry capacity, I refer the House to the two statements I made earlier this week.
Tommy Sheppard
The Government will forgive the House some scepticism about their efficacy and intention in this regard. Surely the Seaborne fiasco shows that only one of two things can be happening: either there is abject incompetence in the preparations for no deal; or the Secretary of State and his Department are not really taking them seriously. Which is it?
Chris Grayling
What is disappointing is that I would have hoped that the hon. Gentleman, as a Scottish Member, would welcome the additional opportunities for Scottish business as a result of expanded services from east coast ports to northern Europe provided by DFDS, which is a very substantial part of the contracts that we have let.
Martyn Day
Seaborne Freight has negative equity of just over £374,000, with one director being investigated by the Government for a trail of debt related to previous companies, yet due diligence did not flag this up. Can the Secretary of State confirm whether that is because due diligence guidance was to look not at individuals’ trading history, but only at Seaborne’s proposals? Why was such guidance provided?
Chris Grayling
As I said in the House earlier this week, we will not be paying Seaborne until ferries operate. From the point of view of business in Scotland, we have made sure that there are additional routes available from the east coast ports to northern Europe. In the event of a no-deal Brexit, which I hope will not happen, that should be a really valuable alternative for Scottish business, and the hon. Gentleman should welcome that.
Sandy Martin
How long has the Minister’s Department estimated it will take to recruit and train the thousands of additional customs officers who will be required if we leave without a deal, and what conversations has he had with Her Majesty’s Revenue and Customs about this?
Chris Grayling
I am very confident, as I have said, that HMRC will be ready. Of course, the point is that, at the moment, we do not collect customs tariffs or carry out checks. The Government have said very clearly that our prime priority in a post-Brexit world will be the fluidity of trade; other things can follow. Security, of course, remains of paramount importance, but beyond that, other things can follow. That is the approach the Government have taken.
Stephen Crabb (Preseli Pembrokeshire) (Con)
I have two ports in my constituency, with ferry connections running from Milford Haven and Fishguard to Ireland. Those ports assure me that they have the skills and the capacity to handle a variety of Brexit scenarios, but all they see at the moment is the promise of further argument and gridlock in this place. Does my right hon. Friend agree that we have a duty in this House to provide a way forward for this industry? Those who take comfort in just opposing everything are failing in their responsibilities.
Chris Grayling
I agree with my right hon. Friend. The reality is that it is all well and good Labour Members saying, “We don’t want no deal,” but then they are going to vote against the deal. They have not come up with any credible alternative plan, so I am afraid I take with a very large pinch of salt most of what the Labour party says at the moment.
Mr Philip Hollobone (Kettering) (Con)
Will the Secretary of State confirm to the House that the Government have signed the common transit convention, which means that, in the event of a no-deal Brexit, customs declarations and import duties, as now, will be required to be paid only when the goods arrive at their final destination?
Chris Grayling
That is absolutely correct. In very many international trading scenarios using the common transit convention, customs processes can be at the start and the end of the journey. That is one reason why I felt able to say to the House earlier this week that I was confident that, in all circumstances, trade would continue to move relatively freely.
Lilian Greenwood (Nottingham South) (Lab)
It has been reported that the Secretary of State’s Department is in talks with two rail freight companies about options to provide additional services via the channel tunnel and High Speed 1 to ensure supplies of food and medicines in the event of blockages at Kent ports. It is also claimed that the Department has written to Southeastern trains warning of possible disruption to its services if additional daytime freight movements are required. Is his Department really contemplating emergency rail timetables in the event of a no-deal Brexit? Has he written to Southeastern regarding such contingency plans? Should the many thousands of rail commuters in Kent be bracing themselves for possible disruption?
Alan Brown (Kilmarnock and Loudon) (SNP)
The Secretary of State’s responses in Tuesday’s urgent question on the Seaborne fiasco were disgraceful. He has awarded an emergency ferry contract to a company with no boats, no ports agreement, no personnel, debts and key personnel with dubious trading pasts. Parliament needs answers. How was Seaborne identified as a company that merited direct negotiations for an emergency contract?
Chris Grayling
It is a bit like the proverbial stuck gramophone record. I said very clearly, earlier this week, that we have let contracts with a number of operators, of which Seaborne represents about 10%, and we pay no money unless the service is delivered. To clarify further what the Chair of the Transport Committee said a moment ago, we are talking to a number of other potential outlets, in case extra capacity were to be needed—rail, ports, maritime—but nothing else has been decided. We have not issued instructions to any rail company about disruptive timetables and we have not taken any further steps to put additional measures in place. We are simply checking the lie of the land so that we can respond to all eventualities.
Alan Brown
This is an emergency contract that the Secretary of State thought was so critical it could circumvent EU procurement rules for direct negotiation, yet he says, “It’s only 10%” and “Don’t worry, if they don’t deliver, they don’t get paid.” That means they don’t deliver that emergency service. We know how sensitive Dover is; there are predictions of delays that could lead to 30-mile queues. If that 10% is not delivered, what is the impact on Dover?
Chris Grayling
This is why 90% of the new contracts are with DFDS and Brittany Ferries. As I said, I am disappointed that the Scottish National party does not welcome the DFDS contract that will provide additional routes from east coast ports to northern Europe, which will be beneficial to Scottish business.
Andy McDonald (Middlesbrough) (Lab)
Putting to one side the ridiculous and desperate allegations of the Secretary of State that Labour is anti-business and his banal allegations over Brexit, I point out that the Seaborne fiasco lays bare his total incompetence and the complete failure of due diligence. Before granting the ferry contract, was he aware of the debt or the promissory note between Ben Sharp, now Seaborne’s CEO, and Mid-Gulf Offshore, acknowledging Sharp’s indebtedness to that company of over $1 million, which remains unpaid?
Chris Grayling
That clearly got under the hon. Gentleman’s skin because he really does not like Government supporting new start-up businesses. The reality is, as I said earlier this week, that due diligence on this contract was done by Slaughter and May, Deloitte and Mott MacDonald, as he would expect, and off the back of that we formed a contract which we pay nothing for until the service is delivered.
Andy McDonald
Here’s another one the Secretary of State might not answer. As a result of this debacle, a variety of legal challenges to the Secretary of State may well flow from, among others, existing freight service providers with capacity. On Tuesday, he said that Seaborne will be able to run ferry services immediately, but on Wednesday the Government said that Seaborne will not be able to open the route between Ramsgate and Ostend until late April at the very earliest. Surely that puts Seaborne in default of its contract to deliver services from 29 March and the contract is therefore void. In those circumstances, should not he reverse his appalling judgment and cancel the contract without delay?
Chris Grayling
We will hold all the companies that have presented us with proposals to the terms of their contracts.
Luke Pollard (Plymouth, Sutton and Devonport) (Lab/Co-op)
Ruth Cadbury (Brentford and Isleworth) (Lab)
The Secretary of State for Transport (Chris Grayling)
As the hon. Lady will be aware, the airports national policy statement requires 50% of passengers to use public transport by 2030, rising to 55% by 2040. It also requires 25% fewer staff car trips to work by 2030, and 50% fewer by 2040. In addition, I expect Heathrow to meet its public pledge of no greater airport-related road traffic.
Ruth Cadbury
The terminal 5 inspector recommended that that expansion should be dependent on additional rail access, and we have seen the consequences locally of that not having happened. The Department for Transport’s own figures say that a third runway will put an additional 54,000 vehicles a day on our local road system. Will the Secretary of State make any further expansion at Heathrow conditional on western and southern rail access?
Chris Grayling
I want to go further than that. Western rail access is currently in development and we are in the early stages of preparation for southern rail access. We are also making provision at Old Oak Common for a Chiltern connection into that station that will provide a link into Heathrow. High Speed 2, of course, will arrive at Old Oak Common and deliver an opportunity to connect into Heathrow from a different route. Finally, it is my hope that the Mayor of London will, notwithstanding the financial challenges at Transport for London, deliver the Piccadilly line upgrade, which is so important.
Justine Greening (Putney) (Con)
The terminal 5 planning conditions, set as part of its go-ahead, were that there would be no third runway and that there would be a legal limit of 480,000 flights a year. Now, of course, we are getting a third runway, and last week Heathrow asked—and, I presume, will be granted—permission to go beyond its 480,000-flight cap. Is not the reality that any assurances—legal, ministerial or public pledges from Heathrow—are utterly meaningless?
Chris Grayling
My right hon. Friend has made her point succinctly. She will understand, though, that if an application comes forward from Heathrow to change the current rules, it would be wrong of me as Secretary of State to pass comment one way or the other at the moment.
Andy Slaughter (Hammersmith) (Lab)
The Secretary of State has mentioned the Piccadilly line upgrade, but he knows that that—and, indeed, Crossrail—is there to cope with existing and future passenger demand, and not Heathrow expansion. Given that we know that Heathrow, as always, will do nothing to cope with the problems that it causes, what will the Government do when there is this massive increase in passengers, a 50% increase in flights and no capacity on those lines to deal with those?
Chris Grayling
Even an expanded Heathrow is forecast to need only 6% of capacity on the Piccadilly line and, as I said a moment ago, we are already moving ahead with western access and starting the process of southern access. I am making provision for a Chiltern route into Old Oak Common, connecting to Heathrow by Crossrail, and HS2 will come to Old Oak Common as part of the first phase of that project. I think we are doing rather a lot to prepare for surface access to Heathrow.
Damien Moore (Southport) (Con)
Liz McInnes (Heywood and Middleton) (Lab)
The Secretary of State for Transport (Chris Grayling)
May I begin by extending the condolences of the whole House to the family of Lee Pomeroy, who was tragically murdered on a train in Surrey last week? I pay tribute to the three members of staff who dealt with the tragic situation and all the British Transport police who responded to it; they all acted with great bravery. While I am talking about bravery, let me also pay tribute to the British Transport police officer who was stabbed in Manchester during the terrorist incident a few days ago.
Liz McInnes
I thank the Secretary of State for that answer and share his sentiments about the terrible attacks on our trains recently.
On 2 January I was at Castleton station in my constituency, watching train cancellation after train cancellation as my constituents were trying to get back to work after the new year break. Does the Secretary of State think that it is fair to hit rail passengers with an above-inflation rise in fares, given the clear decline in punctuality and reliability, and worsening overcrowding on our trains?
Chris Grayling
We have set a limit in line with inflation for the increase in regulated fares. Transport for the North and the Rail North Partnership have additional financial resources from the compensation package provided last summer that they can use on lines that continue to be affected by underperformance if they choose to do so. I would be very happy to see them do that.
Andrew Rosindell (Romford) (Con)
Mr Virendra Sharma (Ealing, Southall) (Lab)
Chris Grayling
I do not have the costs immediately to hand. However, the point about Operation Brock is that it is designed to replace Operation Stack and provide a solution well into the early 2020s in the case of disruption at the channel ports, which I do not want to see. To do the work on the M20 and the work that has happened on the M26, the cost is in the low tens of millions of pounds, but I will be able to give the hon. Gentleman an exact number. It is really important that we do not see a repeat of the disruption of 2015 in Kent.
Ms Esther McVey (Tatton) (Con)
Knutsford commuters have been repeatedly promised an upgrade to the Knutsford to Manchester line to two trains an hour. However, after excuses and procrastination, that is now not happening at the time it was meant to happen. It is unacceptable to have such an unreliable and irregular service for such a busy part of the country. Will the Secretary of State intervene, speak to Northern, speak to Network Rail, and get this promise fulfilled?
Deidre Brock (Edinburgh North and Leith) (SNP)
Chris Grayling
This is really an issue for the Spanish and Irish Governments; it does not affect British Airways at all, as it will be covered by the transitional arrangements as well as by the international agreements we have in place. It is an issue for Iberia and for Aer Lingus, which will clearly want to carry on flying within the European Union.
Mr Philip Hollobone (Kettering) (Con)
I declare my interest as a member of Kettering Borough Council. What further progress is being made by the roads Minister and his team towards tabling the statutory instrument to facilitate the decriminalisation of parking in Kettering?
Hannah Bardell (Livingston) (SNP)
Chris Grayling
First, let us be clear: there is no perfect, off-the-shelf system available to airports that will simply deal with this problem overnight. I pay tribute to those in the police and the military, and across government, who responded so quickly to the Heathrow problem, ensuring that the runway was closed for a very short length of time, and to the team at Heathrow who did the same.
Maggie Throup (Erewash) (Con)
Now that the consultation on the High Speed 2 working draft environmental statement has closed, has the Minister had any indication of when HS2 Ltd will publish its response? Can she ensure that every submission will be given careful consideration?
Justine Greening (Putney) (Con)
Heathrow flight paths go over the most densely populated part of our country—London communities. Drones are a clear public safety risk, as things stand. Does the Secretary of State agree that we should review the decision to further expand Heathrow and have more flights over more communities, on public safety grounds?
Chris Grayling
I am afraid I do not agree with my right hon. Friend. Airports in this country and around the world are now working intensively to ensure they can deliver technology that will deal with this issue. That needs to be done long before we ever get to the point of expanding Heathrow airport.
Kirsty Blackman (Aberdeen North) (SNP)
How much additional funding will the Department require in the 2019-20 financial year in the event of no deal, and has the Treasury approved that?
Chris Grayling
We have an allocation of funding for next year, but almost all our expenditure has taken place within the current year—it is in the region of £70 million. That is the prime amount we are spending. In the next financial year, if we require some of the contingency capacity to which I have committed, there will be a cost. As the House is aware, the maximum that we have contracted for is £103 million.
Anna Soubry (Broxtowe) (Con)
Can the Secretary of State give us an update on the midland main line delayed franchise? As he knows, I am very grateful for the conversation we have had. Stagecoach has taken out £35 million of profit, and it appears to be running down an otherwise excellent system. Can he tell us when the franchise will be awarded?
Chris Grayling
The slight delay to the issuing of the new franchise is for complex reasons related to rail pensions. I have noted the issues that my right hon. Friend has raised. I am concerned about it. It would be unacceptable for any current franchisee to run down the franchise in the run-up to renewal, and a strong message is being sent to the company that, if that is happening, it has to stop right now.
Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)
It is not clear to me what the unforeseeable emergency was that allowed the Secretary of State to award the contract to Seaborne Freight outside the rules. Did he receive explicit legal advice about that, and if so, will he consider publishing it?
Chris Grayling
We are confident that this was a proper procurement process, handled by the procurement team in my Department in the normal way.
Several hon. Members rose—
Seaborne Freight
Chris Grayling Excerpts(5 years, 4 months ago)
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
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Andy McDonald (Middlesbrough) (Lab)
(Urgent Question): To ask the Secretary of State for Transport if he will make a statement on the awarding of a contract to Seaborne Freight as part of his no-deal contingency planning.
The Secretary of State for Transport (Chris Grayling)
The Government are working towards ensuring that we leave the European Union in March with a sensible agreement for the future, through the withdrawal agreement that the House will consider next week, but any responsible Government need to plan for all eventualities. As part of that work, the Department for Transport has been undertaking a wide range of activities to mitigate the impact on the transport system of a potential no-deal EU exit, particularly around the movement of freight. For example, my Department has been delivering measures such as the Haulage Permits and Trailer Registration Act 2018, which puts systems in place if a permit system is required to ensure that UK heavy goods vehicles can continue to be used in the EU.
We have also put in place Operation Brock as a replacement for Operation Stack, in order to deal with disruption at the channel ports. This is not simply a Brexit-related measure. We do not want to see any repeat of the issues that Kent faced in 2015, with the closure of the M20. If there is any disruption at the ports, for whatever reason, Operation Brock should keep the motorway open while we prepare the long-term solution of a lorry park. Yesterday, Kent County Council and my Department carried out a live trial of one part of Brock, on the route from Manston. We were satisfied with the number of vehicles that took part, which was more than enough to determine a safe optimum release rate from Manston to the port of Dover via the A256 and caused minimal traffic disruption along the route.
This is a range of examples of the sensible contingency planning that a responsible Government are carrying out to ensure that we are prepared for a range of outcomes. We remain committed to ensuring that movement across the UK border is as frictionless as possible, whatever the outcome. However, without planning, there could be significant disruption to the Dover strait, particularly if no agreement is reached. Given the importance of these routes to the UK economy, it is vital that we put in place contingency plans to mitigate any disruption that might occur in a no-deal scenario.
The Department is working with the port of Dover and the channel tunnel—as well as with our French counterparts, at both official and ministerial level—to ensure that both operate at the maximum possible capacity in all instances. Those discussions are positive and I am confident that everyone is working constructively to ensure that the Dover-Calais route—particularly at the port of Dover—and the tunnel continue to operate fluidly in all scenarios. However, in order to ease any pressure on those routes, my Department has completed a proper procurement process to secure additional ferry capacity between the UK and the EU. Following this process, three contracts were awarded to operators, totalling a potential of £103 million. Almost 90% of that was awarded to two well-established operators: £46 million to Brittany Ferries and about £42 million to DFDS. These contracts provide additional capacity on established routes, and through additional sailings and, in some cases, additional vessels, into ports in northern Europe and other parts of France.
A third, smaller contract, which is potentially worth £13.8 million, was awarded to Seaborne Freight, a new British operator, to provide a new service between the port of Ramsgate and Ostend. Let me stress that no money will be paid to any of these operators unless and until they are actually operating ferries on the routes we have contracted. No money will be paid until they are operating the ferries. No payment will be made unless the ships are sailing, and of course, in a no-deal scenario, money will be recouped through the sale of tickets on those ships.
As I believe the House knows, Seaborne is a new operator looking to reopen that route, which closed five years ago. As a result of this, we ensured that its business and operational plans were assessed for the Department by external advisers, including Slaughter and May, Deloitte and Mott MacDonald. These included Seaborne’s plans to charter vessels for service, as is common across many transport modes including airlines and rail operators. We also conducted searches on the directors of Seaborne via a third party, and found nothing that would prevent them from contracting with the Government.
I make no apology for being willing to contract with a new British company, particularly one that has a large number of reputable institutional backers. We contracted with Seaborne Freight because the service it proposes represents a sensible contingency in the event of disruption on other routes. I am also pleased that this award supports the port of Ramsgate, which operated as a commercial ferry port as recently as 2013 and has taken roll-on roll-off services as recently as last year. I am looking forward to seeing ferry services resume from this port. The infrastructure work required to make that possible has already started, and it is one of the most visible and symbolic elements of how seriously my Department is taking contingency planning for all Brexit eventualities.
Andy McDonald
The Transport Secretary has awarded a £14 million contract to a company with no money, no ships, no track record, no employees, no ports, one telephone line, and no working website or sailing schedule. Two of Seaborne Freight’s directors would not pass normal due diligence requirements. One of them, Ben Sharp, is already under investigation by a Government Department. Did the Department for Transport consult other Departments about Mr Sharp’s fitness as a company director? Ben Sharp quit his business activities in the Gulf leaving a trail of debt behind him. His company, Mercator, was merely a shell finding vessels for security companies. Is it correct that he operated without the licence he needed pursuant to the Export Control Order 2008? Did he operate without that licence? Yes or no?
It is abundantly clear from the promissory note published by “Channel 4 News” that Sharp owed and still owes Mid-Gulf Offshore more than $l million, and many more companies besides. How is it that Slaughter and May, Deloitte and Mott MacDonald were instructed to restrict their due diligence examination to the face value of the presentation put to them by Seaborne? Why on earth have they been allowed to restrict their investigation to the present company and not to consider the trading history of the individuals concerned, particularly Ben Sharp? The mayor of Ostend has made it clear that Seaborne cannot berth at his port as it has no bank guarantees and no contract with Ostend. It is without capital. Who is investing in Seaborne? Who is paying for the dredging of Ramsgate?
This is a shoddy and tawdry affair, and the Secretary of State is making a complete mess of it. This contract is likely to be unlawful and it violates every current best practice guidance issued by Whitehall. When will he realise that this country cannot continue to suffer the consequences of his gross incompetence? Why is this calamitous Secretary of State still in post?
Chris Grayling
I am not even going to address the idiocy that the hon. Gentleman has just come up with. He has made a number of allegations, which I suggest he goes and makes elsewhere. I am simply going to say this: the Government have let a contract for which we will pay no money until and unless ferries are running. That is responsible stewardship of public money. On other matters, from the due diligence we have done, there is no reason to believe that anyone involved in this business is not fit to do business with the Government. I say this again: we are not spending money unless these ferries operate.
Mr Owen Paterson (North Shropshire) (Con)
Many of us would agree that much the best end solution for the talks between the Government and the EU would be a wide-ranging free trade agreement, as offered by President Tusk in March, with zero tariffs. However, to bring the EU to the table, to counter the arrogant boasting of Mr Selmayr in the Passauer Neue Presse, which many of us have been reading since we heard about it yesterday, and to show that we are deadly serious, it is obvious that we must prepare for World Trade Organisation terms. I therefore commend the Secretary of State for his various actions to show that we are serious about preparing this country to work under those terms, through which we work with the rest of the world.
Chris Grayling
I am grateful to my right hon. Friend. It is absolutely right and proper that we prepare for all eventualities. The sad thing is to see the Labour party trying to destroy Brexit and taking a destructive approach to any sensible measures that this Government take to prepare for all Brexit eventualities. Frankly, Labour is not fit to be in opposition let alone in government.
Alan Brown (Kilmarnock and Loudoun) (SNP)
Seaborne Freight has no boats, negative equity of £374,000 and no history of running ferry or freight services. The current director, Brian Raincock, and chief executive Ben Sharp both had companies liquidated owing Her Majesty’s Revenue and Customs money, with Raincock’s debt at £600,000. HMRC is us, the taxpayer, so what constitutes due diligence? What red flags were identified? How did that company get handpicked for direct negotiations for operating out of a port that is not even ready?
The Secretary of State’s written statement indicated that direct negotiation was possible under regulation 32 of the Public Contracts Regulations 2015, which relates to emergency situations brought about by unforeseeable events. However, the Government claim to have been planning for no deal for over two years. What legal advice was provided? What level of madness exists to contract contingency planning to a company with no track record of such service?
Saying that the company will get paid only if it can deliver misses the point, because if it does not deliver the so-called emergency contingency service, that would leave us high and dry. Is that the project for which the ministerial direction was required? Is there a central Government instruction and process for the awarding of such no-deal Brexit contracts? If so, can we see it? Does this contract comply with that guidance? If so, that highlights the shambles of this Government’s no-deal preparations. When will the Secretary of State do the right thing and go?
Chris Grayling
This procurement was done properly and in a way that conforms with Government rules. It secures the position of the taxpayer by ensuring that no money will change hands unless and until the ferries are running. The hon. Gentleman does not seem to listen.
Sir Bernard Jenkin (Harwich and North Essex) (Con)
I join my right hon. Friend the Member for North Shropshire (Mr Paterson) in supporting my right hon. Friend the Secretary of State’s determination to be prepared for all eventualities. He has succeeded on aviation services, the transit convention and other things that will ensure that trade keeps flowing. However, what lessons can be learned from this situation? No matter how good this company might be, this is a difficult contracting environment in which things must be done quickly under intense political and public scrutiny. Will my right hon. Friend ask the permanent secretary to conduct a quick lessons-learned exercise so that companies with which the Government are contracting are better prepared than this one for the scale of public scrutiny to which it has been subjected?
Chris Grayling
My hon. Friend makes a valid point about public scrutiny. This contract was properly signed off by my Department’s accounting officer, and it was done in the best possible way when dealing with a new business, which is to ensure that the business will be paid only when it delivers the service. That is a responsible use of taxpayers’ money.
Lilian Greenwood (Nottingham South) (Lab)
I have already written to the Secretary of State with a long list of questions about his Department’s procurement of additional ferry services as part of no-deal planning, and I look forward to receiving his response. Yesterday, however, Lloyd’s Loading List reported some extraordinary remarks from the CEO of Seaborne Freight, Jean-Michel Copyans, about the proposed Ramsgate to Ostend route. He said:
“Then we’ve had to identify the vessels best suited to the type of crossing, which we’re keeping a secret for the moment.”
With no crew, no signed contracts in place with Ramsgate or Ostend, no clear plans to bring the infrastructure back into service and now “secret” ships, is there not a huge question mark over the deliverability of the service?
Chris Grayling
My officials and I have confidence in the deliverability of the service, but if the firm fails to deliver it, we do not pay.
Charlie Elphicke (Dover) (Con)
Does my right hon. Friend agree that no-deal contingency planning is very much in the national interest? Will he join me in condemning those who want to try to prevent no-deal planning through parliamentary wrecking tactics and sabotage, and through Trump-style Government shutdown threats? Does he agree that such tactics from the Labour party would make problems in Kent and elsewhere more likely, and that they are irresponsible, reckless and wrong?
Chris Grayling
I completely agree with my hon. Friend. He will agree that it is right and proper that we do everything we can to keep trade flowing through the port of Dover and the channel tunnel as smoothly as possible. We are taking prudent measures to ease potential pressures on those ports, which is the sensible thing to do. The risk to the taxpayer is not there, because we will not pay unless the service is delivered. The Labour party does not seem to believe in no-deal Brexit planning.
Hilary Benn (Leeds Central) (Lab)
The Secretary of State takes a rather unusual approach to contract letting, because as soon as he is questioned about the ability of the firm with which he has contracted to deliver on what it has promised, he tells the House, “If they don’t do it, we won’t pay.” He said a moment ago that he is confident that the company will be able to run the service, so will he answer a very simple question? Has Seaborne Freight told the Department which vessel it has acquired in order to provide the service, which could be needed in just over two months’ time?
Chris Grayling
The company has told my Department in great detail about its plans, which are being finalised commercially. We are confident that the firm will deliver the service.
Sir Nicholas Soames (Mid Sussex) (Con)
My right hon. Friend will be aware that Seaborne Freight has had it in mind for well over two years to start the Ostend-Ramsgate route. Does he agree that the constant denigration of the contract, which means that the contractor will not get a single penny of anyone’s money until it fulfils the contract, is damaging to sensible work? Finally, if we were—God forbid—to crash out on WTO terms in the extreme circumstances mentioned by my right hon. Friend the Member for North Shropshire (Mr Paterson), will the Secretary of State tell the House whether he would have any arrangements to take up shipping from trade?
Chris Grayling
My right hon. Friend makes a good point. There seems to be visceral hatred of small business on the other side of the House and a visceral belief that the Government should not be willing to contract with small business. The Government are told time and again that we should contract and work with small business, and help small businesses to develop, but when we do so, we get nothing but a wall of criticism from Opposition Members. The Labour party hates business. This new Labour party is very different from the one of 10 years ago—it simply hates business.
I say to my right hon. Friend that if we find ourselves in a no-deal situation, there are other measures that we can bring forward. We are actively looking at how we would do so.
Diana Johnson (Kingston upon Hull North) (Lab)
I have never seen a Minister bluster and bluff quite as much as this Minister has today. Following everything that the Secretary of State has heard from the shadow Secretary of State and the Chair of the Transport Committee, does he not have one iota of concern about the contract being let to this shyster?
Chris Grayling
Mr Speaker, that is an inappropriate thing for any Member to say, and I am not going to respond to it.
Mr Speaker
I simply say that the Secretary of State is perfectly entitled to his assessment of whether it is appropriate in political terms. No breach of order has taken place procedurally, but the Secretary of State has made his judgment, and I accept that.
Dr Sarah Wollaston (Totnes) (Con)
I am glad to hear the Secretary of State confirm that no money will change hands, but there will undoubtedly be vast manpower and bureaucracy costs in no-deal planning, and we know that there are actual costs when it comes to commissioning refrigerated warehousing and special air freight. All that could be avoided if the Government ruled out no deal. No deal would be catastrophic, and no sensible Government should inflict that on their people.
Chris Grayling
Of course, the best way of avoiding no deal is to ensure that the deal passes through this House, and I will vote for it next week.
Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)
It feels like we are on the set of a film called “Carry On Brexit”. Le Figaro described the contract as ferries “sans bateaux”. The firm’s terms and conditions are from a pizza delivery company, so we wonder whether the MV Hawaiian and the MV Pepperoni will be sailing the route. To get away from “Carry On Brexit”, the serious point is that the Secretary of State is saying that if the company does not deliver ferries, there will be no payment, but if it does not deliver the ferries, what will be the fall-back, stopgap or contingency? If there are no ferries, the whole thing falls apart—it is “Carry On Brexit”!
Chris Grayling
What a load of absolute tripe. I can tell the hon. Gentleman has not been listening to me. Ninety per cent. of this contract has been awarded to substantial and established ferry operators—DFDS and Brittany Ferries. We did not have a reason to exclude a small business from taking a small part of the contract with a legitimate, valid bid.
Craig Mackinlay (South Thanet) (Con)
It is remarkable, is it not? If the Government were to do no planning for all Brexit eventualities, they would be condemned. Now they are doing sensible planning, they face derision. I have met Seaborne Freight, which has shown itself, over a number of years, to be the only party interested in running new services between Ramsgate and Ostend—that was even before this contingency planning. Personally, I welcome the dredging and improvements now taking shape at the port of Ramsgate at no cost to local taxpayers. We will have a regeneration bonus, no matter what, and I welcome that.
Thanet District Council and the people of Ramsgate will do all they possibly can for Brexit provision, so I welcome the measures the Secretary of State has taken, but there are people in this House who do not seem to be listening. Will he say once more that there will be no cash for Seaborne Freight if it does not run the services?
Chris Grayling
I am very happy to reiterate that. It is a responsible approach to a new contract with a new business that we will pay when the business delivers. It is disappointing to hear that the Labour party is so opposed to the regeneration of the port of Ramsgate. It was not so long ago that the Labour party represented Ramsgate in Parliament but, given this negative attitude, it does not deserve ever to do so again.
Luciana Berger (Liverpool, Wavertree) (Lab/Co-op)
One of the directors of Seaborne Freight has been named by the Financial Times as Brian Raincock, whose previous company went into liquidation in April 2017 owing £585,000 to its main creditor, HMRC, which is essentially the British taxpayer. Is the Secretary of State content that this excruciating fact apparently did not come up during his Department’s due diligence on Seaborne Freight before it awarded the contract? Whether or not Seaborne Freight delivers the ships, it has still been awarded a £14 million contract, so hon. Members on both sides of the House rightly have an issue with the Secretary of State and his response today.
Chris Grayling
I keep telling the hon. Lady that the £14 million will not be paid unless Seaborne Freight delivers a service. I will not comment on the tax affairs of an individual, and nor should she. The due diligence on all those participating in the company found no reason why they are unfit to do business with the Government.
James Duddridge (Rochford and Southend East) (Con)
I congratulate the Secretary of State on his detailed preparations, but will he also consider how south Essex can support those preparations at Tilbury, London Gateway and London Southend airport? London Southend airport has experience of just-in-time delivery to Dagenham and is run by Stobart Group, an excellent freight haulage firm.
Chris Grayling
I absolutely agree. Of course, if we find ourselves in a no-deal scenario, a number of other ports, including Tilbury, will play a part. I hope we do not reach that point, and I think we all agree that we want a sensible free trade agreement with the European Union after 29 March, but the reality is that we need to make sure we are prepared for all eventualities. In such a situation, many of our ports up the east coast and along the south coast will play an important part in making sure that trade flows freely.
Joanna Cherry (Edinburgh South West) (SNP)
I am very concerned about the legality of this procurement process. In his statement yesterday, the Secretary of State said that he had proceeded under regulation 32 of the Public Contracts Regulations 2015, which allows the Government to circumvent the normal, transparent and EU-mandated procedures. I have a copy of the contract notice here, which is freely available on the internet, and it says that the basis for proceeding under regulation 32 is “extreme urgency.” As my hon. Friend the Member for Kilmarnock and Loudoun (Alan Brown) said, the idea that no deal is a possibility and, to quote the Prime Minister, that no deal is better than a bad deal has been around for some time, so how can the Government, at this late stage, justify proceeding with procurement that is appropriate only in the case of extreme urgency?
I have two questions for the Secretary of State and, just for once, my constituents would like to hear an answer. First, will he release the legal advice that permitted him to proceed under regulation 32? Secondly, as he will be aware, if he has proceeded wrongly under regulation 32, his Department and the Government are open to legal action. How much money has been set aside for the contingency of court action about the illegality of the procurement process and a claim for damages?
Chris Grayling
It is my view that, as we move towards leaving the European Union, preparing for all eventualities is a matter of extreme urgency, which is also the advice that my Department has received and has given to me.
Mr Steve Baker (Wycombe) (Con)
If Opposition Members had an ounce of sense and concern for the national interest, they would welcome the fact that the Department for Transport is preparing to leave the European Union under all circumstances and they would recognise the courage of the Secretary of State, his Ministers and his officials in testing and operationalising their plans. Does he share my disbelief at the policies that are being urged on him by Opposition Members, and will he reassure me that he will continue his excellent work to prepare this country for leaving?
Chris Grayling
I am very grateful to my hon. Friend for his comments. I give him an absolute assurance that I will continue that work. Frankly, the tragedy is that the Labour party seems to have abandoned interest in the national interest.
Tom Brake (Carshalton and Wallington) (LD)
The train timetable fiasco, the drone disruption, the Manston lorry park carry-on and, now, ferrygate—the Secretary of State is the embodiment of the Peter principle.
On the earlier point about competition, can the Secretary of State explain the
“extreme urgency brought about by events unforeseeable by the contracting authority”?
Can he explain what was unforeseeable about no deal, for which the Government have been planning for the past couple of years and to which they have referred many, many times in this place? What was unforeseeable about that?
Chris Grayling
Sadly, what was unforeseeable is the attitude of many hon. Members, mostly Opposition Members, towards the Prime Minister’s sensible agreement. The agreement meets all their requirements, and they are now saying they oppose it anyway.
Mr Simon Clarke (Middlesbrough South and East Cleveland) (Con)
The shadow Secretary of State and I both represent Middlesbrough, which voted overwhelmingly to leave, so I found his comments attacking the Secretary of State for making robust preparations for no deal very surprising.
Will the Secretary of State commit to engaging Teesport in the preparations for any scenario that may arise from Brexit? It is important that we make all the preparations required for all contingencies.
Chris Grayling
I am very grateful for my hon. Friend’s comments. I reiterate that we are looking to involve other ports across the country as we make preparations for an eventuality that I hope will not happen. The reality is that the people of Middlesbrough voted clearly to leave, and they will not understand why the hon. Member for Middlesbrough (Andy McDonald) is letting down their 2016 vote.
Mr Chris Leslie (Nottingham East) (Lab/Co-op)
If this contract fails, our country will have even greater problems with the continuity of trade, so it will be the public who pay the price—it will not be just the central contractor that loses money.
I seek a bit of accountability from the Secretary of State. The front page of today’s Financial Times says that the Department for Transport commissioned a study showing that just an extra 70 seconds of analysis or discussion of each truck crossing the channel could lead to a six-day queue for vehicles getting on a ferry. Has he seen that study? Is the study accurate, and will he publish it now?
Chris Grayling
We have made it very clear to the House that queues will be caused if the French seek to impose maximum control and put in place limited checks. Why on earth does the hon. Gentleman think we are putting some of these contingency measures in place? He asked what happens if the contract does not go ahead, but I have said that 90% of the extra capacity is being provided by two established operators that will continue to deliver the services we have contracted.
Bob Stewart (Beckenham) (Con)
Will my right hon. Friend reassure the House that the Port of Dover and Eurotunnel are making detailed contingency plans in case of no deal?
Chris Grayling
I give my hon. Friend that assurance. We are working with both organisations, and we are also having detailed discussions with the French. The leadership in Nord-Pas-de-Calais and Paris, and the leadership of the port and the tunnel on the French side, are as keen as we are to see fluidity continue through those ports. We are taking contingency measures, but our prime focus is on making sure that trade flows freely, whatever checks are required.
Alison Thewliss (Glasgow Central) (SNP)
The Transport Secretary’s colleague the Home Secretary has been trying to stop people getting across the channel while the Transport Secretary is busy contracting with companies that have no ferries at all. Is his next whizzo move to contract people who are doing people smuggling in dinghies?
Damian Collins (Folkestone and Hythe) (Con)
If there are delays in processing freight through the channel tunnel in my constituency or the port of Dover, is the Secretary of State convinced that his contingency planning means that we will not see a return to Operation Stack and that the M20 motorway will remain open in both directions if there are delays? Will he also update us on when he expects his Department to produce its site list for the potential long-term off-road lorry parking solution in Kent?
Chris Grayling
It is my belief that Operation Brock will prevent the closure of the M20. That is my prime concern—what happened in 2015 should not be repeated. I think there is sufficient capacity to ensure that that will not take place. We have completed the infrastructure works that are necessary on the motorways to ensure that the flow in both directions can continue, and we are now doing the detailed testing to understand flows of traffic and how to manage them to make sure that we do not see the kind of disruption we saw in 2015. I am hopeful that we will move quickly from the consultations we are having now to being able to decide a permanent location and get the thing dealt with once and for all.
Grahame Morris (Easington) (Lab)
Any members of the public watching this debate will be absolutely amazed. They will think it is bizarre that we have a Transport Secretary who signs a shipping contract with a shipping company with no ships. Given that the company is going to hire in ferries, does he have any idea what plans it has to crew its ferries and whether UK crews would be used?
Chris Grayling
There is a complete lack of understanding of business models on the Opposition Benches. Opposition Members should understand that when they go on holiday next summer there is a fair chance they will be flying with an airline that owns no planes. The reality is that transport operators do not always own their own assets; they contract or charter them in and they operate the service. I do not think that Opposition Members understand that. As to the crewing of the ships, that is a matter for the company itself.
Victoria Prentis (Banbury) (Con)
Will the Secretary of State confirm to me that it is normal to award contracts, in a small part, to new operators and that while perhaps 90% of operators used by the Department are established, it is perfectly normal for the Department properly—acting legally as part of its procurement process—to include new operators as part of the consideration?
Chris Grayling
My hon. Friend is absolutely right; that is normal, and we do not actually do enough of it. The Government are frequently criticised for contracting only with big business and not with small business. Ironically, now we are contracting with small business for a small part of a package we need, we are getting criticised for it, so we cannot win either way.
David Hanson (Delyn) (Lab)
Further to the question asked by my hon. Friend the Member for Liverpool, Wavertree (Luciana Berger), will the Secretary of State confirm that one director of this company owes £580,000 to HMRC from a previous failed administration? Will he say what due diligence was undertaken on that contract? Will he also tell us how we are going to repay that money to the Treasury?
Chris Grayling
I am not going to comment on individual tax affairs. All I am going to say is that due diligence was carried out into the participants in this business and no reason was found why they should not contract with Government.
Mr Marcus Fysh (Yeovil) (Con)
It is very reassuring to hear about my right hon. Friend’s discussions with the ports of Dover and Calais and the contingency plans that he is putting in place. Will he tell us more about how companies can get to know what they have to do to make sure that their declarations are appropriately communicated to the port? That seems to me to be a potential pinch point that we need to look at.
Chris Grayling
Certainly one part of the no deal preparations that we are now going through—HMRC is very actively engaged in this—is about the declaration processes that businesses would need to go through. The reality is that this happens already. Goods are shipped from this country to Switzerland, for example, through established processes in this country and on the continent. We will need to ensure in the run-up to a no-deal Brexit that business is up to speed with what it needs to do. A huge amount of work in this respect is already happening.
Sir Mark Hendrick (Preston) (Lab/Co-op)
Things are getting bad when a former Conservative party chair accuses this Government of using Dr Strangelove tactics. This is a perfect example. Instead of trying to prepare for a no-deal scenario, why do the Government not just look at extending article 50 so that we can avoid this catastrophe?
Chris Grayling
Two things: first, I think it would be wrong to block Brexit. Secondly, I think it is right that the Government prepare for all eventualities. They would be accused of being irresponsible if they did not do so.
Helen Whately (Faversham and Mid Kent) (Con)
The view from my constituency, which has the M20 and the M2 running through it, is that we must not have another Operation Stack, so I welcome all contingency measures that my right hon. Friend is taking, but the reality is that whatever happens, the vast majority of our freight will have to continue to go through Dover-Calais. Therefore, the flow of that route is absolutely critical. Will he advise us of how ready the French are to carry out any customs checks that might be required in the event of a no-deal Brexit?
Chris Grayling
We have had detailed discussions with the French. I am very optimistic that they have the same ambition that we do, and they are putting in place plans to ensure that happens. I have had personal commitments from the leadership in Nord-Pas-de-Calais, and of course there is a legal requirement for them put those plans in place, particularly with regard to the tunnel, as the treaty of Canterbury requires them to keep trade and traffic flowing smoothly through the tunnel. I have every reason to believe the French will uphold that commitment.
Richard Burden (Birmingham, Northfield) (Lab)
In April 2018, Seaborne Freight issued in writing an investor briefing that claimed:
“Detailed port agreements with Ramsgate and Ostend negotiated and agreed”,
but it is now clear that no such agreements exist to this day. Indeed, the Mayor of Ostend has given an interview in which he said:
“A start-up in March is simply impossible. There is currently no agreement with Ramsgate and also with Ostend”.
If the Secretary of State has satisfied himself that due diligence checks have been carried out that confirm the suitability of Seaborne Freight to receive a £13.8 million Government contract, will he tell us what weight he has attached to the fact that Seaborne Freight has issued inaccurate investor briefings? Will he also finally answer the question asked by my right hon. Friend the Member for Leeds Central (Hilary Benn), the Chair of the Brexit Committee, and name just one ship that due diligence checks have revealed Seaborne Freight is likely to be able to bring into service by March?
Chris Grayling
I am not sharing, nor is it my responsibility to share, the company’s commercial information. I simply remind the hon. Gentleman that no money will change hands unless the company is running this service. That seems to me to be the best possible protection for the taxpayer’s money.
Stephen Metcalfe (South Basildon and East Thurrock) (Con)
Will my right hon. Friend expand on the discussions he has had with the management team and what expertise and experience they are bringing to the table to operate this service?
Chris Grayling
My officials have had detailed discussions with the management team and have gone through their plans in detail. My hon. Friend might have seen the article in Lloyd’s List, which has also been shown the business plan and gave it a thumbs-up as being a viable option. This is a team of people who have experience in this industry and who we believe will deliver this service, but of course they will be paid only if they do so.
Stephen Morgan (Portsmouth South) (Lab)
Some 95% of fresh produce in the Channel Islands gets there via Portsmouth international port. Delays at our port would mean empty shelves in the Channel Islands in 48 hours. What guarantee can the Secretary of State give today to ensure uninterrupted delivery from all our ports of critical goods such as fresh food and medicine?
Chris Grayling
On incoming freight, we intend not to put in place complex checks at the border. We have been clear all along that the Government’s priority, apart from security, will be to ensure free movement of trade. Of course, goods arriving from the Channel Islands will not be subject to the kind of constraints we might see going in at Calais, and the issues around transport blockages really relate only to the short straits around Dover and the tunnel, not to other ports, where the movement of ships is not on a sufficient scale to cause significant blockages.
Matt Warman (Boston and Skegness) (Con)
It would be irresponsible not to prepare for no deal, of course, but would it not be even more irresponsible to be spending money where we did not need to?
Chris Grayling
That is why we are not going to spend the money until the ships are available and running. The reality is that we do need to spend money to prepare for a no-deal Brexit. I hope that money proves not to be needed—I want us to have a sensible partnership in the future—but believe me, if we were here now facing a no-deal Brexit and no preparation had been done, the shouting from the Labour party would be enormous.
Mr Paul Sweeney (Glasgow North East) (Lab/Co-op)
The Secretary of State talks about supporting entrepreneurialism. I am a big fan of “Dragons’ Den”, and I think this is one of those pitches that everybody would have been cringing at had they actually seen it, but it seems to be good enough for the Secretary of State. He talks about a no-deal Brexit. I think the Government should rule out a no-deal Brexit, but if he is insistent on planning ahead for it he needs sure delivery of freight capacity on shipping routes. The Ministry of Defence has immediate access to four roll-on roll-off ferries. Why on earth has he not committed to using those assets, which are immediately available to him, instead of insisting on a highly risky contractual arrangement with a dubious private contractor?
Chris Grayling
What I have done is insist on a highly substantial commercial arrangement with two very established cross-channel ferry operators and given a small amount of business to a new operator. If there is a no-deal Brexit, which I hope will not happen, we have several other measures that we can bring into place.
Rebecca Pow (Taunton Deane) (Con)
Will my right hon. Friend assure the House that he is in consultation with not only Dover and Calais but other ports about what would happen in the event of no deal, which I sincerely hope will not happen? The way to avoid no deal, of course, is to vote for the deal. In Taunton Deane, many businesses, lots of them small, rely on exporting and ferries. They must not be hampered and we must act responsibly to give them assurances.
Chris Grayling
The clearest assurance that I can give is that I have been to Calais and met my French counterpart to talk about this issue, I have met the president of the Nord-Pas-de-Calais, and officials have had discussions, and I have had no sense from any of those conversations that the French want anything other than to maintain the fluid movement of trade through the channel ports. That is something to which we should all aspire.
Jonathan Edwards (Carmarthen East and Dinefwr) (PC)
Does not this sorry episode clearly indicate that the absurd mantra of a managed no deal is a contradiction in terms?
Chris Grayling
As I say, the Government do not aspire to a managed or an unmanaged no deal—we want to secure a deal—but it is not responsible not to prepare for all eventualities.
Mr Philip Hollobone (Kettering) (Con)
I commend the Secretary of State for recognising that it is absolutely in the national interest to make preparations for a no-deal Brexit, not least because it strengthens our negotiating hand, even at this late stage. Will he tell the House what the common transit convention is, not only for the benefit of the House but in particular for the benefit of those on the Opposition Front Bench, and explain how it will mitigate the worst effects of impeded traffic flows in the event of no deal?
Chris Grayling
The common transit convention is the international agreement by which trade flows across multiple countries. It has already been announced that in leaving the European Union the United Kingdom will remain part of that convention, which will play a significant part in ensuring that trade flows freely in all situations. None the less, we need to make sure that we cannot get blockages at key ports, and that is what we are working to do.
Wayne David (Caerphilly) (Lab)
In the interests of transparency, will the Secretary of State indicate to the House which companies were considered for the contracts?
Chris Grayling
We received three compliant bids, all of which we judged acceptable and accepted. Two of them were from major operators that will provide around 90% of the capacity, plus there was this small additional contract. Should we choose to return to the market, there is also potential interest in the provision of extra capacity. I hope we will not need that, because I hope that we will have a proper deal come next week.
Douglas Chapman (Dunfermline and West Fife) (SNP)
It has certainly been an “I see no ships” sort of week, but what consideration has the Secretary of State given to utilising ports in other parts of the UK—namely, the high-exporting country of Scotland? I hear really good things about the potential for a Rosyth-Zeebrugge ferry link, for which potential ships have actually been identified. Is not Scotland losing out? How can we realise Scotland’s potential in this Brexit fiasco?
Chris Grayling
I appreciate that the Scottish National party does not support Brexit and, indeed, would like to do everything it can to stop Brexit, but we will work to make sure that every part of the United Kingdom, including Scotland, is able to continue to trade freely around the world and gain from the benefits that will be achieved in this country in a post-Brexit world.
Kevin Brennan (Cardiff West) (Lab)
I see no ships, but I do smell something fishy, and I think other colleagues do as well. Is the Secretary of State really saying to the House that the best choice for the contract was a company that cut and pasted its terms and conditions at the last minute from a fast-food company? Is his new Brexit mantra “A meal deal’s better than no deal”?
Chris Grayling
Of course, it is not a single contract. There are multiple contracts, of which 90% is going to two of the biggest cross-channel operators—something the Labour party appears to be completely ignoring. The fact is that we have chosen to give a small proportion of the business to a legitimate bid from a small start-up business, and I think that is something the Government should do more often, not less.
Chris Stephens (Glasgow South West) (SNP)
I think our plea to the contractors is that we want these ships, not excuses. Quite astonishingly, in answer to a question from the hon. Member for Easington (Grahame Morris), we heard from the Secretary of State that there will somehow be driverless ferries—that there will be no staff—so presumably there is no national minimum wage requirement in the contract. First, will the Secretary of State publish the legal advice that he says he was given? That seems sensible, given the House’s concerns. Secondly, will he tell us what were the procurement requirements in relation to equipment, such as ferries, or indeed in respect of the socioeconomic impact in relation to wages, for example?
Chris Grayling
In effect, what we are doing is buying tickets in advance on cross-channel ferries on a number of routes around the country. That is what we are doing. It is no more and no less than that.
Alex Sobel (Leeds North West) (Lab/Co-op)
It is quite incredible that the Secretary of State has awarded a contract to a company with no ships, no investors, no customers, no credible business plan, no employees and no premises. Is he aware that Seaborne Freight tried to get an option to purchase the following four ships: the Hartmut Puschmann, the Espresso Catania, the Espresso Ravenna and the Via Adriatico? They all operate in the southern Mediterranean and would need a complete refit to be able to operate in the channel. In addition, two of the ships failed EU safety inspections. On top of that, Tirrenia, which owns the ships, said that it would not sell them because it did not believe that Seaborne Freight had the money. I visited Tirrenia’s website and found that I could go on a Mediterranean cruise on the four vessels in April. Was the Secretary of State aware of that?
Chris Grayling
I am not going to comment on the commercial plans of Seaborne Freight. I am satisfied that it will have the ships necessary to operate the service, but if it is not able to deliver them, it will not be paid.
Luke Pollard (Plymouth, Sutton and Devonport) (Lab/Co-op)
Brittany Ferries has been awarded a no-deal ferry contract but, unlike Seaborne, it actually has ferries. No-deal sailings into Millbay port in Plymouth will increase traffic by 50%. Will the Secretary of State point to where on the 200 metres of tarmac between the ferry port and Plymouth city centre he expects facilities to be built for the lorry park, the customs checks, the veterinary checks and the environmental health checks?
Chris Grayling
Let me say two things. First, I thought it would be good for the port of Plymouth to have more traffic; I am sorry that the hon. Gentleman does not agree. Secondly, the reality is that, as I said earlier, we do not intend to impose a hard border for traffic coming into the United Kingdom. We intend to focus on the fluidity of trade as our priority. It will be security first and fluidity second, and other matters will come well afterwards. We are not imposing a hard border on this side of the channel.
Ferries
Chris Grayling Excerpts(5 years, 4 months ago)
Written StatementsRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Secretary of State for Transport (Chris Grayling)
The Government have entered into three contracts with ferry operators to provide additional ferry capacity and services into the UK as part of no-deal EU exit contingency planning.
While the ambition of Government is to ensure an orderly exit from the EU, the Department for Transport has been undertaking a wide range of work to mitigate the impact on the transport system of a no-deal EU exit.
Significant work has taken place to understand the effect that this would have on the UK border and the impact on flows of goods between the UK and EU. While the Government have made clear they are committed to ensuring frictionless movement across the UK border, the scale of the potential disruption to the Dover Straits, if additional customs checks were introduced in Calais, Coquelles and Dunkirk, where freight services disembark, could be very significant. Given the importance of these routes, contingency work is being undertaken to mitigate potential impacts and ensure that goods can continue to flow into and out of the UK as freely as possible.
A priority for Government is to ensure that the Port of Dover and the Eurotunnel can continue to operate at the maximum possible capacity. The Government are therefore working with both organisations and our French counterparts in Calais, Coquelles and Dunkirk so that any disruption or drop in throughput is managed effectively and mitigated.
There is a clear willingness to reach agreements which secure the continued operation of these vital trade routes in all scenarios and the Government remain confident that there will not be major disruption to the flow of goods across the border. Nevertheless, the potential for a decline in throughput remains possible in a worst-case scenario and the Government are therefore planning for all eventualities.
As one of several contingency measures being undertaken, the Department for Transport has completed a procurement process to secure additional ferry capacity between the UK and the EU which can be used for critical goods such as medical supplies in the event of disruption to cross-Channel crossings. A negotiated procurement procedure without prior publication was concluded as allowed for by regulation 32 of The Public Contracts Regulations 2015. An accelerated competitive process was carried out in order to ensure that capacity can be in place in time for a no-deal exit while at the same time securing value for money for the taxpayer. The Department approached a number of shipping providers capable of providing additional freight capacity in order to ensure fairness for the market and also engaged external expertise to ensure value for money for the taxpayer.
Bids were evaluated on the basis that they met our strategic aims of providing additional freight capacity for a no-deal Brexit scenario. Bids were reviewed against a number of criteria, including journey time, quality of delivery plans, and the pricing submitted by bidders.
The bids we received to provide capacity were subject to technical, financial and commercial assurance as part of standard due diligence procedures and consistent with that undertaken on all Government contracts. This included a price benchmarking exercise to ensure that the taxpayer was getting good value for money, and assurance on the delivery plans of our bidders.
The Department commissioned external advice from three respected professional advisers to support this work. Three contracts were agreed with operators totalling c.£103 million.
Two contracts went to established operators, Brittany Ferries (£46.6 million) and DFDS (c.£42.6 million). These contracts provide for additional capacity between the UK and EU on existing routes, via the provision of additional services and additional vessels. The contracts agreed with them include early termination provisions and other typical contractual provisions to ensure Government have the right protections in place, such as in the event of an operator becoming insolvent.
The routes agreed with Brittany and DFDS are away from the Dover Straits, and will run from the Ports of Immingham and Felixstowe (DFDS) and Poole, Plymouth and Portsmouth (Brittany) to destinations in Germany (Cuxhaven), the Netherlands (Vlaardingen) and France (Caen, Cherbourg, Le Havre, and Roscoff).
The third contract was awarded to Seaborne Freight (£13.8 million), a new operator to provide a new service between Ramsgate and Ostend. Seaborne Freight has been preparing for some time to operate services on this route. The management team of Seaborne has extensive experience in the shipping and maritime sector, including the operation of ferry services on cross-channel routes, freight brokerage, port management and vessel chartering.
While the broad contract structure is the same for all three contracts, including the provision that payment will only be made in arrears and on the successful provision of services, the Seaborne contract is also subject to the achievement of a range of key milestones including in relation to finalising funding and vessel chartering agreements.
As with many operators in the sector, it is not uncommon that they do not own their own vessels and will be chartering them through third parties. The Department has reviewed their plans for sourcing vessels with the support of external advisers. A number of large institutional investors are backing this service and the Government’s contract represents a small part of the overall investment required by Seaborne to open this route. These lenders undertake their own rigorous due diligence before making financial commitments, providing a further level of assurance to Government. Seaborne and my Department are also working closely with Thanet Council to ensure that Ramsgate Port is ready to take new services. A programme of work to prepare the infrastructure is under way.
In total the additional freight capacity delivered by these three contracts will be equivalent to around 8% of normal flows across the Dover Straits. While this will not be sufficient to mitigate the full level of disruption possible in a worst-case scenario, it will enable the Government to provide essential capacity for the highest priority goods including medical supplies.
In terms of next steps, the Department for Transport will provide support to and oversight of all operators to ensure that these services are delivered to meet the terms of the contracts agreed.
I will provide further updates to Parliament at the appropriate points.
[HCWS1233]
Drones: Consultation Response
Chris Grayling Excerpts(5 years, 4 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Secretary of State for Transport (Chris Grayling)
I should like to make a statement about the action the Government are taking on our future policy on drones.
The disruption caused by drones to flights at Gatwick airport last month was deliberate, irresponsible and calculated, as well as illegal. It meant days of chaos and uncertainty for over 100,000 passengers at Christmas, one of the busiest times of the year. Carefully planned holidays were disrupted, long-expected reunions between friends and relatives missed. Families were forced to spend hours at an airport, not knowing if or when they would reach their destinations—completely unacceptable and utterly illegal. I pay tribute to all at Gatwick and other airports who worked very hard to make sure people did get away, albeit belatedly, for their Christmas breaks, and I thank all those in the defence world and the police who worked hard to get the airport back together again, and of course Sussex police are now leading the investigation into this criminal activity.
I am clear that, when caught, those responsible should face the maximum possible custodial sentence for this hugely irresponsible criminal act, and I want to assure the House that my Department is working extremely closely with airports, the Home Office, the Ministry of Defence, the Civil Aviation Authority and the police to make sure our national airports are fully prepared to manage any repeat of what was an unprecedented incident. I spoke personally to the heads of the major UK airports before Christmas, and later this week the aviation Minister, Baroness Sugg, will meet them again for an update on progress. In the meantime the Ministry of Defence remains on standby to deal with any further problems at Gatwick or any other airport if required.
This incident was a stark example of why we must continue to ensure drones are used safely and securely in the UK. Today I am publishing the outcome of our recent consultation, “Taking flight: the future of drones in the UK.” We received over 5,000 responses to that consultation reflecting a broad range of views. Those responses underlined the importance of balancing the UK’s world-leading position in aviation safety and security with supporting the development of this emerging industry. The Government are taking action to ensure that passengers can have confidence that their journeys will not be disrupted in future, aircraft can safely use our key transport hubs, and criminals misusing drones can be brought to justice.
The UK is where technology companies want to build their businesses, invest in innovation and use science and engineering to bring immense benefits to this country. Drones are at the forefront of these technological advances and are already being used in the UK to great effect. Our emergency search and rescue services use drones on a regular basis. Drones can also reduce risks for workers in hazardous sectors such as the oil and gas industries, and this technology is also driving more efficient ways of working in many other sectors, from delivering medicines to assisting with building work.
However, the Gatwick incident has reinforced the fact that it is crucial that our regulatory and enforcement regime keeps pace with rapid technological change. We have already taken some big steps towards building a regulatory system for this new sector. It is already an offence to endanger aircraft. Drones must not be flown near people or property and have to be kept within visual line of sight. Commercial users are able to operate drones outside of these rules, but only when granted CAA permission after meeting strict safety conditions.
Education is also vital to ensure everyone understands the rules about drone use. That is why the CAA has been running its long-standing Dronesafe campaign and Dronecode guide—work that is helping to highlight these rules to the public. And on 30 July last year we introduced new measures that barred drones from flying above 400 feet and within 1 km of protected airport boundaries. In addition, we have introduced and passed legislation that will mean that from November all drone operators must register and all drone pilots complete a competency test.
However, we now intend to go further. Today’s measures set out the next steps needed to ensure that drones are used in a safe and secure way and that the industry is accountable. At the same time these steps will ensure that we harness the benefits that drones can bring to the UK economy.
A common theme in those 5,000 consultation responses was the importance of the enforcement of safety regulations. The Government share that view. The majority of drone users fly safely and responsibly, but we must ensure that the police have the right powers to deal with illegal use. We will therefore shortly be introducing new police powers. These include allowing the police to request evidence from drone users where there is reasonable suspicion of an offence being committed, as well as enabling the police to issue fixed penalty notices for minor drone offences. Those new powers will help to ensure effective enforcement of the rules. They will provide an immediate deterrent to those who might misuse drones or attempt to break the law.
My Department has been working closely with the Home Office on the legislative clauses that will deliver these changes. It is of course crucial that our national infrastructure, including airports and other sites such as prisons and energy plants, are also adequately protected to prevent incidents such as that at Gatwick. We must also ensure that the most up-to-date technology is available to detect, track and potentially disrupt drones that are being used illegally, so we have also consulted on the further use of counter-drone technology. Those consultation responses will now be used by the Home Office to develop an appropriate means of using that technology in the UK.
Of course, aviation and passenger safety is at the heart of everything we do. While airlines and airports welcomed our recent airport drone restriction measures, they also asked for the current airport rules to be amended in order to better protect the landing and take-off paths of aircraft. We have listened to those concerns, and we have been working with the CAA and NATS to develop the optimum exclusion zone that will help to meet those requirements. It is important to stress that any restriction zone would not have prevented a deliberate incident such as that at Gatwick. However, it is right that proportionate measures should be in place at airports to protect aircraft and to avoid potential conflict with legitimate drone activity. We will therefore introduce additional protections around airports, with a particular focus on protected exclusion zones from runway ends, alongside increasing the current aerodrome traffic zone restrictions around airports. Drone pilots wishing to fly within these zones must do so only with permission from the aerodrome air traffic control. We will amend the Air Navigation Order 2016 to implement these changes.
I want to address some of the rather ill-judged comments that have been made by Labour Members. Let me remind them of three things. First, the event at Gatwick airport was a deliberate criminal act that can carry a sentence of life imprisonment. We can pass new laws until the cows come home, but that does not stop people breaking them, and the law is as tough as is necessary to punish the perpetrators of an attack such as this. Secondly, this was an entirely new type of challenge. It is noteworthy that, since the events at Gatwick, we have been approached by airports around the world for our advice on how to handle something similar. Thirdly, the issue was solved only by the smart and innovative use of new technology. For security reasons, I am not going to give the House details of how this was achieved, but I want to extend my thanks to the Ministry of Defence for moving rapidly to put a new kind of response into the field.
There is no question but that lessons have to be learned from what happened at Gatwick. Passengers have to be able to travel without fear of their trips being disrupted by malicious drone use. Airports must be prepared to deal with incidents of this type, and the police need the proper powers to deal with drone offences. We must also be ready to harness the opportunities and benefits that the safe use of drones can bring. The measures I have announced today in response to the consultation will take us forward on that front, and I commend this statement to the House.
Chris Grayling
The hon. Gentleman is right to say that the rhetoric we have heard today is many miles away from reality: his rhetoric! Let me restate the point that this was a crime. It was an illegal act, and it had nothing to do with the laws that are in place. Somebody deliberately decided to disrupt Gatwick airport. It was a crime that will carry a sentence of up to life imprisonment when that person is caught, and I put it to the House that that maximum penalty is, in my view, appropriate to the crime. This is not a question of the laws not being in place; it is a question of catching the person who did this, and Sussex police, amply supported by the Met and our security agencies, are working very hard to achieve that.
The hon. Gentleman’s second point was about technology. Let me gently explain that the technology that was deployed with the help of the Ministry of Defence, for which we are grateful, to tackle the problem is new and unavailable elsewhere in the world. This country is at the forefront of developing systems that can combat this kind of issue, and a huge amount of work is ongoing to find out what is on the market and to assemble new kinds of systems, but there simply is not an off-the-shelf solution available to airports that they could buy tomorrow to provide protection against such attacks. A huge amount of work will now take place to ensure that that can happen, but he is simply ill-informed if he believes that there is some magic solution that was not put in place.
The third point is that other airports are now placing a huge amount of focus on ensuring that such things cannot happen again. Above all, however, we have put in place a mechanism to redeploy the MOD capability should such an event occur again. I hope that it does not, but we know how to deal with it if it happens again, and other airports around the world are coming to us asking, “What do we need to do?” That is the reality of what is happening, not the nonsense we have just heard from the Opposition spokesman.
Henry Smith (Crawley) (Con)
As the Member of Parliament for Gatwick airport, I extend my thanks to everybody who worked so hard on 19 and 20 December to mitigate the deliberate criminal act that the Secretary of State correctly identified. One of my concerns is that the Ministry of Defence was not brought in until some 18 hours after the incident started on the Wednesday evening, so will the Secretary of State assure me that the deployment of the military technology will be more rapid if further such attacks are forthcoming?
Chris Grayling
I am grateful for the opportunity to reiterate my thanks to all those in and around Gatwick who worked so hard at an extremely difficult time for the airport. As for the deployment of the technology, the first thing to say is that it was not immediately apparent that we were dealing with anything more than irresponsible drone usage close to an airport, which has happened many times over the past few years. By the time it became clear that this was a malicious attack, the Government machine and the Ministry of Defence moved as quickly as possible to deploy a new kind of response to deal with the issue. Clear protocols are now in place that would enable the system to be deployed quickly, but I hope that that will not have to happen again.
Alan Brown (Kilmarnock and Loudoun) (SNP)
I thank the Secretary of State for sharing the parts of the statement he felt like sharing in advance. He was previously warned about the need for tougher legislation by my predecessor as Scottish National party spokesman, my hon. Friend the Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry), the shadow Minister, by myself and by the British Airline Pilots’ Association, so why did he ignore those warnings and delay legislating in this area? What new evidence has actually emerged from the consultation confirming the need for additional enforcement powers, other than the blatant reaction to the Gatwick incident? How many of the 5,000 responses to the consultation related to enforcement?
How much was spent on overtime over the holiday period to get the consultation response document ready for the first day back so that the Secretary of State could pretend that he is suddenly in charge? How did the Government come up with a 400 feet-high and 1 km-wide exclusion zone? Using two different methods of measurement is a complete recipe for confusion. What consultation was undertaken at that time? What was BALPA’s view? What was the view of the Civil Aviation Authority and NATS when the previous exclusion zone was proposed? How has the Secretary of State now suddenly arrived at a 5 km exclusion zone? Why did the Government not meet the stated target of a draft Bill by summer 2018? What updates on that lack of progress did they ever give to Parliament?
Given that legislation regarding the use and deployment of drones is reserved to Westminster, what support will the UK Government offer to Scottish airports to allow them to comply with any changes? Will that include financial support? The Secretary of State mentioned that the Home Office is legislating for and developing the appropriate means of using the new technology, so which is the lead Department? Will all the legislation come in one new Bill? How do we know that the planned timetable will be met?
Under this Secretary of State’s watch, we have had the east coast mainline bail-out, the Northern rail fiasco, the Thameslink rail fiasco, delays to High Speed 2, contracts awarded to Carillion, and a ferry contract awarded to a company with no ferries. Today, his Department could only muster 89 lorries out of a planned 150 for a pretend no-deal scenario planning exercise. When we factor in the drone legislation fiasco, when is he going to move aside?
Chris Grayling
Well, it is difficult to tell whether we got more nonsense today from the SNP or from Labour. The hon. Gentleman appears not to have noticed that we legislated last summer to tighten up the rules around drones. He asked whether we had been working overtime over the Christmas period. I have to say that the consultation response was finished before Christmas, work on draft clauses for the drones Bill is substantially completed, and we have now brought forward this, which was well prepared over many months, so that question was nonsense as well.
The hon. Gentleman talked about the approach to the exclusion zone around airports. We judge that it is necessary to provide as much protection as possible to the flight path into and out of an airport, which is why we end up with something that looks more like the Transport for London sign, with bits sticking out either side to provide extra protection for the approach and landing areas, than a pure circle around the airport. As for Scottish airports, they have been a part of the discussions that I had over the Christmas period and will be a part of the discussions that Baroness Sugg will be having later this week.
Dr Julian Lewis (New Forest East) (Con)
I fully accept what the Secretary of State says about the adequacy of the laws and the deterrent effect of potential sentences. However, it is possible for anybody to go on the internet and buy a simple but substantial device that they could use not to try and close an airport, as in this case, but to fly into the engine intakes of a plane that was landing or taking off. What can he tell us about not only registration but, more importantly, the capability to prevent such an attack maliciously being mounted by someone who might well belong to a jihadist organisation and who will not be deterred by death, let alone by long prison sentences?
Chris Grayling
That is a serious point that we and the security services have been working on. We have been in conversation with airports about it for some considerable time, and two things are happening on that front. First, this country has moved to introduce a drone registration scheme, which will start later this year. Secondly, and more significantly, the European Aviation Safety Agency is moving towards a requirement, which I expect to be introduced within two to three years, for all drones to contain technology that allows them to be tracked and potentially to be stopped in critical areas.
Lilian Greenwood (Nottingham South) (Lab)
I welcome the Secretary of State’s statement, but I wonder whether it closes the gate after the horse has bolted. BALPA has been warning about the rise in irresponsible use of drones close to aircraft and airports for years. An incident of this sort was surely foreseeable, and I am unsure whether the Secretary of State was saying that he was satisfied that the airport had proper and adequate plans to respond to such a risk. However, changes to regulations will mean nothing if we are unable to stop, catch and prosecute offenders. If such a crime is perpetrated in the future, what assurances can he give the House that it could not lead to further such disruption to services?
Chris Grayling
On the hon. Lady’s point about BALPA, we legislated last summer to make certain activities around airports illegal. That included the height at which a drone can be flown and the restricted area around an airport within which a drone could not be flown. She asked what would happen in a future incident. Right now, we have protocols in place to allow us to deploy the same equipment as was used at Gatwick if there were to be a repeat attack. The airline industry and the airport industry are working intensively to try to assemble mechanisms that could prevent such an attack from happening again. The reality is that there is not, and has not been, an off-the-shelf solution. That is now being worked on—the technology is being assembled and systems are being integrated—but there is no simple, off-the-peg solution available right now, beyond the capability that we have in place to protect UK airports.
Justine Greening (Putney) (Con)
In my constituency, which is under the Heathrow flight path, there are significant concerns about aircraft safety. I have written to the Secretary of State in the past, prior to the incident, about my concerns over drones. Does he recognise that far less attention is paid to mitigating risk outside airports than inside them? Does he agree that it is sheer folly to get on with expanding Heathrow and increasing the threat to communities such as mine, which will have more flights going over them, while this clear risk continues? Should we not seriously consider whether that is a sensible approach to take over such a densely populated area, when, as he says, the technology to provide greater safety simply does not exist at scale?
Chris Grayling
I know how strongly my right hon. Friend feels about the matter. Of course, the same issue would arise whether expansion took place at Gatwick, Stansted or Heathrow. The reality is that Heathrow has been ahead of most other airports in providing protection against drones, but even Heathrow has not had the perfect solution. That is why the systems that we now have in place could be deployed at Heathrow at short notice to provide protection for the airport.
John Spellar (Warley) (Lab)
I think it was Peel who said that the absence of crime, not the apprehension of criminals, was the test of a good force. What the hundreds of thousands of travellers wanted was for the disruption to be stopped. May I ask some very specific questions? Were there contingency plans already agreed with the MOD and the Home Office to protect our airports from drone incidents and others? If not, why not? If there were such plans, why did they not work? Were they not activated in time because of dithering, and was that the fault of the Secretary of State’s Department, the Ministry of Defence or the Home Office—or, indeed, the Cabinet Office and the Cabinet Secretary in No. 10? Which is it?
Chris Grayling
As we are hearing from around the world, protections against such a deliberate and disruptive attack are few and far between. The reality is that the Government and different Departments, including the MOD, moved very quickly to assemble a response of a different kind from any previous one, and they did so in a way that is now being looked at very carefully around the world.
Mrs Maria Miller (Basingstoke) (Con)
My right hon. Friend is absolutely right that what we saw at Gatwick was criminal activity, and I welcome the actions that he has taken. My constituents are surrounded by airports at Southampton, Farnborough, Lasham and the Odiham RAF base. What discussions has my right hon. Friend had with these smaller airports, which have real challenges when it comes to taking measures to protect themselves from such malicious attacks? As my right hon. Friend the Member for Putney (Justine Greening) has said, such attacks threaten not only safety in the air, but residents on the ground.
Chris Grayling
That is why the measures we introduced last summer—to make it illegal to fly a drone close to an airport and to put restrictions on the height above which one can fly a drone—were applicable to the situation in most of the drone incidents that have occurred, namely irresponsible usage close to an airport. There were 97 such incidents last year. We will be sharing the experience of Gatwick, and indeed the technological developments, with airports such as Southampton. Such airports may want to take steps similar to those taken by bigger airports to protect themselves. As I say, this is an emerging technology.
Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)
What happened at Gatwick was, as the House knows, pretty damned scary. Wherever we travel in the world, passengers have an equal right to confidence and safe travel. Let us hope that we in the UK get the legislative framework right and work out how to take down such drones if they are hostile. I suggest that it would be in the best interests of travellers all over the world for us to share our knowledge, and perhaps to work towards some sort of international treaty governing the use, administration and stamping out of drones when they are in bad use.
Chris Grayling
I absolutely agree with that. We are already seeking to share our knowledge and experience, and I expect it is something that the International Civil Aviation Organisation will also want to pick up on. [Interruption.] Once again, the shadow Minister is rabbiting on from a sedentary position about EASA. It is Government policy to remain part of EASA, if we can, because in areas such as international aviation safety, we believe it is sensible to work internationally across borders.
Tim Loughton (East Worthing and Shoreham) (Con)
The oldest commercial airport in the country is in Shoreham, in my constituency. This problem affects not just the large commercial airports, but the smaller ones too. Sussex police were greatly stretched when the incident happened, and I know that they greatly welcomed the offers of help from around the country, but there was concern about confusion over the lead Department. Was it Transport or the Home Office? Of course, later the Ministry of Defence was brought in as well. What assurances can the Secretary of State give that in future there will be a much better immediate, co-ordinated response?
The Secretary of State has spoken about the need to legislate, and about registering drones. The trouble is that most of them come in from China and, increasingly, a lot of them can be DIY built. The people who do that do not register, and they have no regard for regulations. Those drones will certainly not carry devices that make it possible to disable them, to ensure that they are not harmful near airports. What is he doing about that?
Chris Grayling
That is precisely why the technology becomes so important: for all the requirements that one puts into law, including around the technology that goes into drones, ultimately if people choose to act in a deliberate, disruptive and illegal way, the technology needs to be there to stop them. In respect of responsibility, the gold command was Sussex police, supported by the Metropolitan police and the security services. In Government, my Department took the lead.
Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)
The document to which the Secretary of State referred is called “Taking Flight”, but is it not true that his Government have taken flight over this issue? This is not a new issue that has suddenly arrived: BALPA has been arguing for greater protection for years. Indeed, almost three years ago I raised this issue with the then Minister of State, the right hon. Member for Scarborough and Whitby (Mr Goodwill), when I said,
“we have the current issue of drones near aircraft, which needs to be addressed in an air strategy. I hope that the Minister will do something about that before there is a critical problem.”—[Official Report, 20 April 2016; Vol. 608, c. 357WH.]
The Minister of State said in that debate that he was
“wise enough not to stray into”—[Official Report, 20 April 2016; Vol. 608, c. 361WH.]
those issues. Is it still wise not to have not done anything for more than three years?
James Cartlidge (South Suffolk) (Con)
Just prior to Christmas, I held a rural crime summit in Lavenham in my constituency. A key issue raised was hare coursing. I was pleased to learn that Suffolk constabulary had purchased a drone, which will be used to gather intelligence and will greatly enable us to fight back against this real menace in rural areas. Does the Secretary of State agree that although the incident with drones that we are discussing was criminal, the technology offers great potential for fighting back against criminality, and in particular those crimes with which we have historically struggled to deal?
Chris Grayling
I quite agree, which is why the strategy is about not only meeting the challenge of the careless, illegal or inappropriate use of drones but setting a direction to ensure that we allow the kind of usage that my hon. Friend talks about. As well as the inspection of infrastructure and policing, there are a whole variety of other ways in which drones can be a positive for our society.
Kevin Brennan (Cardiff West) (Lab)
The Secretary of State is right that what we are discussing was a crime, but it was an entirely foreseeable crime. I, too, asked the previous aviation Minister about this issue two and a half years ago. Is the truth not that these matters really should be the responsibility of the Ministry of Defence, because the consequences of bringing down a civil airliner of this kind are so huge? It may or may not have been the Secretary of State’s fault, but it was beyond the competence of his Department. It is far too serious to be dealt with by the Department for Transport.
Chris Grayling
I do not think it is a question of one Department or another: we have to work as a team. The truth is that the Ministry of Defence has and did have a really important role. The Home Office has a really important role in enforcement and licensing. The Department for Transport manages the use of airspace. It is a policy area in which the Government need to work as a team. My view is that the response, which brought three Departments together, was the right approach.
Bill Grant (Ayr, Carrick and Cumnock) (Con)
In my 30 years in the fire service, I attended two major aircraft incidents, one of which resulted in multiple fatalities. The whole House and the nation can be grateful for the actions taken at Gatwick airport, where there was no loss of life and no loss of aircraft. Despite the chaos for the travelling public, in the circumstances it has to be measured as good that there was no loss of aircraft and no loss of life. In the light of the events at Gatwick, what discussions has my right hon. Friend had with airport operators throughout the United Kingdom about mitigating or preventing the malicious incursion of drones into operational airspace? We must bear in mind that those intent on bringing chaos and death to the air-travelling public will not respect exclusion zones, so on their own exclusion zones will not stop the drones.
Chris Grayling
That is the central point: we could have done everything imaginable in legal terms, but if somebody is determined to cause an attack of this kind, they will do so. It is now very much about understanding what technology can make a difference. In technological terms, this was very much a learning exercise, because there simply was not an off-the-shelf system available to deal with it. It took a lot of effort to work out what competencies were there and to assemble them in a way that could work. It was the first time that had been done anywhere in the world. We now understand more clearly how to deal with an attack such as this one, and others will have learned from it so that the kind of terrible events that my hon. Friend mentioned can never happen in such a situation.
Luke Pollard (Plymouth, Sutton and Devonport) (Lab/Co-op)
I declare an interest: my boyfriend was one of those people who were supposed to land at Gatwick. Although he landed a few days later, he did so safely, and that was appreciated.
It is right that technological solutions must keep pace with the threats that we face. What consideration has the Secretary of State given to live-update geofencing to make sure that if people are accidentally flying a drone near a restricted airspace—around not only airports but defence installations—that drone will not be able to access that airspace and that it can be live-updated by the authorities to make sure that drones do not enter any restricted airspace?
Chris Grayling
This is one of the areas that is currently being worked on at a European level. We are working with EASA on this and we expect regulations to come forward during the implementation period that we would want to be part of in any case, because these technologies are made not just in one country. The point about geofencing is an important one, as is the ability to include technology that enables us to track a drone and to know which drone it is. My hon. Friend the Member for East Worthing and Shoreham (Tim Loughton) made the very real point that a number of these machines are assembled by amateurs on a fair scale, which is why we need the technology to take them down as well.
Jeremy Lefroy (Stafford) (Con)
Who is responsible for inspecting airfields and airports for their security in matters such as this? Can we have a report in a few weeks’ time—I appreciate that not everything can be disclosed—that says that all major airports in the country have been inspected and have put in place the right measures to prevent or deter an incident such as that at Gatwick?
Chris Grayling
Most immediately, the security at the airport is the responsibility of the owners themselves, supported by my Department and by the national security agencies. Those discussions are already happening—they were happening within a matter of hours of the incident at Gatwick. I can assure the House that every airport is now taking active steps to look at what measures it can put in place, but the reality is that these are experimental systems and are not universally available yet. It will take a bit of time for other airports to get them in place. In the meantime, the Ministry of Defence capability is there if necessary.
Mrs Madeleine Moon (Bridgend) (Lab)
I urge the Secretary of State to look at the reports by the BBC’s Quentin Somerville who shows how drone attacks, using commercially available drones, have been using chemicals and explosive devices on the battlefields of Mosul. In many respects, we were fortunate—darn lucky—in that we had a wake-up call at Gatwick. May I suggest that the Secretary of State talks not only to the MOD but to NATO, where there is huge expertise about the use on the battlefield of drones, which can be bought commercially and used here by terrorists who want to attack us?
Chris Grayling
I can assure the hon. Lady that we are very well aware of that and, indeed, the security services have been providing advice to airports about this for some considerable time. They have provided advice specifically based on some of those experiences in the middle east, and this is something on which we work with them continuously.
Nic Dakin (Scunthorpe) (Lab)
There was some speculation in the press at the time that there may not have been any drones involved in this incident. Will the Secretary of State confirm how many malicious drones brought all this destruction to Gatwick, and can he tell us, in the light of this experience, what he is doing to make sure that his Department supports airports around the country in getting their contingency plans updated?
Chris Grayling
The report of there being no drone was a misspeak by a police officer. I have spoken to the chief constable since and to the airport chief executive—we talk regularly—and there is no question but that there was a drone or a small number of drones. Nobody is quite sure whether it was one, two or three, but it certainly was not a large number—probably only one. It made a return on a regular basis on many occasions just as the airport was about to reopen. On contingency work, I spoke to the operators of all the major airports on the day after this happened. Within a short period of time, after we understood what the issue was, police around the country were carrying out additional patrols around those airports. We have had regular discussions since. Baroness Sugg is holding a further meeting with them in a few days’ time to get an update on their plans. All of them have been briefed that we can provide the kind of support that the MOD provided at Gatwick if something happens there.
Christine Jardine (Edinburgh West) (LD)
I was one of those tens of thousands of people whose journey was disrupted that day. After the initial relief that it had been rearranged in such an orderly way for me to get home to Edinburgh, which also had to cope with the knock-on effect, I was aghast that one of our major airports could be so vulnerable and that it took so long to get it back in play. That is an issue which, with respect, the Secretary of State will have to pay attention to and address. He said a few minutes ago that these incidents are few and far between, but, with respect, it would take only one to create a catastrophe and there has been an undermining of public confidence in the safety at our airports. Will he bring forward some report, some work to reassure the public, and, without in any way undermining security, detail how our passengers will be protected in our airports?
Chris Grayling
I am happy to do that to some degree, but the reality is that the response by the Ministry of Defence included some highly sensitive, confidential, secure equipment. That equipment is there to be deployed at other airports at short notice, should the need arise. I give the hon. Lady an undertaking that we are talking to all those airports about what additional measures they can put in place and are already putting in place to ensure that this cannot happen again. Until now, all the experience of drone incidents around the world has been of irresponsible drone usage. This is the first time that a drone has been deliberately used in a very clever way over a sustained period of time to disrupt an airport. Airports now need to ensure that they are ready to make sure that that cannot happen again.
Martin Docherty-Hughes (West Dunbartonshire) (SNP)
I hope that it comes as no surprise to the Secretary of State that I am now the fourth member of the Defence Committee to rise. It comes as no surprise to the four members of that Select Committee present in this Chamber that this situation has arisen and that nothing was planned to deal with the consequences other than calling the Ministry of Defence, whose Ministers, I am disappointed to say, are not also on the Front Bench.
As a constituency MP, like many others here with airports within distance of their constituencies, I wonder whether the Secretary of State can give some assurances to my constituents, specifically in Whitecrook in the burgh of Clydebank. Does the Secretary of State recognise that disruptive technology is not new?
With all due respect to my hon. Friends and colleagues who were disrupted during the travel episode, this is also not just about the traveller. It is about the person living on the ground, if a tragic event should bring down a liner on top of a community represented by any of us. Fundamentally, this is not just about airports or aeroplanes. What should happen, as the Chair of the Select Committee himself asked, if someone should use a drone to attack a piece of infrastructure, whether it be an oil refinery or rig, or a large drone hits the front of a high-speed intercity train? The Secretary of State must recognise the consequences of this situation and the impact on people’s lives if nothing is done about it.
Chris Grayling
Of course. Many people around the world are trying to find the perfect anti-drone solutions but, as Gatwick airport discovered, the reality is that those technologies are still embryonic. We now have in place an assembly of systems that will enable us to deal with an incident such as this again, but there is a lot of work to be done and a lot of work is being done.
EU Transport Council
Chris Grayling Excerpts(5 years, 5 months ago)
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The Secretary of State for Transport (Chris Grayling)
I attended the only formal Transport Council under the Austrian presidency (the presidency) in Brussels on Monday 3 December.
The Council reached general approaches on the social and market pillars of the first tranche of the ‘Mobility Package’. The ‘social pillar’ is intended to establish a specific regulatory regime for the posting of workers in the road transport sector, and the ‘market pillar’ is intended to introduce new regulatory requirements for the operation of light commercial vehicles (vans); and to modify the ‘cabotage’ rules for vehicles operating in countries other than their country of establishment.
I welcomed the work that the presidency had done to achieve compromises on these challenging proposals, give the range of view from member states. During the discussion, I pressed for a further reduction in the proposed cabotage ‘cooling-off period’ (a period of time between cabotage operations) and for extending the period after which a vehicle should return to base to 10 weeks. After a lengthy debate a compromise was reached which included the reduction of the ‘cabotage’ cooling-off period to five days; clarifying when the posting of workers rules would apply to different haulage operations; removing altogether the requirement for the return of the vehicle; and retaining the original proposal to ban drivers from taking weekly rest in the cabin of their vehicles.
Following this, the Council reached a general approach on a proposal from the second tranche of the ‘Mobility package’, to amend the current directive on combined transport. The existing directive liberalises cabotage operations when part of a freight journey that comprises a rail or sea leg. The general approach included an amendment to these cabotage provisions in line with the earlier compromise on cabotage rules.
The Council reached a general approach on the proposed directive on road infrastructure safety management (RISM), from the third tranche of the ‘Mobility Package’.
The lunchtime debate consisted of Ministers discussing how to address airspace capacity constraints and was followed by presentations from Eurocontrol Director General, Eamonn Brennan and Transport Commissioner, Violeta Bulc.
Later, the Council reached two general approaches on the proposed directive on minimum level of training for seafarers and the proposed regulation establishing a European maritime single window. In addition, the Council adopted conclusions on inland waterway transport.
The Council reached a partial general approach on the Connecting Europe Facility (CEF), endorsing the text presented by the presidency. The outstanding elements are those subject to horizontal negotiations on the multi-annual financial framework beyond 2020.
The Council noted the presidency’s progress reports on discontinuing seasonal changes of time, rail passenger rights, streamlining the trans-European transport network, clean and energy efficient vehicles and electronic freight transport information.
Finally, there were several information points from member states, the presidency and Commissioner Bulc under any other business. The presidency updated Council on the provisional agreements reached with the European Parliament on electronic road tolling and exchange of information, safeguarding competition in air transport and aviation wet-leasing. Commissioner Bulc noted good progress in on-going EU-ASEAN aviation negotiations that she hoped would conclude this year. In reply to a joint declaration from Luxembourg, Belgium, Denmark, France, Germany and the Netherlands on the social agenda in aviation, Commissioner Bulc noted that she would present a progress report on the social agenda identifying actions for potential completion. Ireland intervened to defend the value of new business models in aviation. Commissioner Bulc also drew attention to the 17 December conference on sustainable transport infrastructure charging and internalisation of transport externalities to be held in Brussels. The presidency provided an update on the EU’s space programme and the outcome of the informal meeting of Transport and Environment Ministers held in Graz on the 29-30 October 2018. Finally, Romania presented transport plans for its incoming presidency of the Council of the European Union.
[HCWS1167]
GTR: May Timetable Disruption
Chris Grayling Excerpts(5 years, 5 months ago)
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The Secretary of State for Transport (Chris Grayling)
I wish to inform the House that the Department for Transport has completed its analysis of the events surrounding this year’s May timetable introduction on the GTR network. In line with Professor Stephen Glaister’s interim report, it has concluded that the disruption on this network was caused by a series of mistakes and complex issues across the rail industry.
I can announce today that the Government are holding GTR to account for its role in the unacceptable performance following the introduction of the May timetable. GTR will make no profit from its franchise in this financial year and looking ahead, we have also capped the amount of profit that the operator is able to make for the remainder of its franchise, which is due to expire in September 2021.
Furthermore, GTR will be contributing £15 million towards tangible improvements for passengers. This is in addition to the £15 million the operator has already contributed towards compensation for passengers since the May timetable disruption. GTR has agreed to work with the rail user groups representing passengers of Thameslink, Southern and Great Northern, who will determine what improvements this package will fund.
The Department has concluded that a termination of the franchise would cause further and undue disruption for passengers and is not an appropriate course of action.
Performance after the May timetable change was unacceptable. This action announced today holds GTR to account appropriately and will benefit passengers. The Department will continue to monitor closely the performance of GTR, particularly during the upcoming December timetable change. These measures do not make GTR immune from further sanctions in the event of any subsequent failure to perform.
[HCWS1132]
EU Transport Council
Chris Grayling Excerpts(5 years, 5 months ago)
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The Secretary of State for Transport (Chris Grayling)
I will attend the last Transport Council under the Austrian presidency (the presidency) taking place in Brussels on Monday 3 December.
The Council will consider proposals from the first tranche of the ‘Mobility Package’. Under the ‘social pillar’ of the package the presidency will seek a general approach on proposals to establish a specific regulatory regime for the posting of workers in the road transport sector; to introduce new regulatory provisions in relation to ensuring that drivers have the option regularly to return home; and to enable drivers to take their regular weekly rest in their vehicles provided that certain welfare-related conditions are met. Under the ‘market pillar’ of the package the presidency will seek a general approach on proposals to introduce new regulatory requirements for the operation of light commercial vehicles (vans); and to modify the ‘cabotage’ rules for vehicles operating in countries other than their country of establishment. The Government consider the package to be a necessary response to current issues with the functioning of the EU road transport market, in particular, unco-ordinated national enforcement action in relation to posting of workers rules, and exploitation of some aspects of the regime by some non-compliant operators. The Government are broadly content with the specific proposals, particularly with the compromise gained on limiting the extension of regulatory obligations to operators of larger vans which are also undertaking international haulage work.
Next, the Council is expected to reach a general approach on a proposal from the second tranche of the ‘Mobility Package’ to revise the current directive on combined transport. The proposal contains provisions that could improve promotion of modal shift across the EU and reduce congestion. The Government consider that the proposal includes some positive changes to modernise the processes and, as currently drafted, will provide an acceptable balance between EU-wide action and national discretion.
Following this, the Council will consider a general approach on a proposal from the third tranche of the ‘Mobility Package’ to amend the current directive on road infrastructure safety management (RISM). The current directive was adopted to ensure that road safety considerations are at the forefront of all phases of the planning, design and operation of road infrastructure and currently applies to roads on the trans-European transport network (TEN-T). The Government consider that the proposed increase in scope to include motorways and ‘primary roads’ is a proportionate expansion of the directive and is content with the proposal that member states define the ‘primary roads’ covered by it. The Government believe the proposal strikes a balance that will allow member states to retain judgment over where the directive is applied in their own countries, while upholding the shared principles of robust safety inspection and excellence in road design.
There will be a progress report on the proposal to amend the directive on discontinuing seasonal changes of time, which the Government oppose. We have no plans to change daylight saving time within the UK, and feel that the Commission has not provided enough evidence to demonstrate a strong case for changing the existing arrangements.
Afterwards, there will be a progress report on the proposal to revise the regulation on rail passengers’ rights and obligations, aimed at strengthening the rights of rail passengers, including by improving access for people with disabilities or reduced mobility.
Following this, the Council is expected to reach a general approach on the proposal to amend the directive on the minimum training of seafarers. These changes will ensure that the legislation is up to date, and will provide the European Maritime Safety Agency (EMSA) with additional time to decide whether to recognise an outside state’s certification. The Government consider the general approach to be satisfactory on the basis that the amendments are justified and appropriate to ensure that maritime directives are in line with international norms, and so that EMSA can make appropriately informed decisions.
The Council is also expected to reach a general approach on another proposal from the third tranche of the ‘Mobility Package’, to revise the current directive establishing a European maritime single window environment. This is intended to further harmonise the electronic submission of ship pre-arrival reporting formalities. The Government support digitisation here as it can provide benefits for business. The UK has engaged constructively in negotiations and has been able to share its existing expertise in many areas. The Government welcome the proposed general approach, which is satisfactory.
The Council is expected to reach a partial general approach on a proposed regulation on the Connecting Europe Facility. The proposal will move into the next multiannual financial framework with broadly the same funding allocation for transport as the current MFF. The Government support the value that a well-managed funding programme like the Connecting Europe Facility can bring to transport infrastructure. However, the regulation will take effect after the UK has left the EU, and the Government are still considering their position on future involvement in the programme.
There will be a progress report on a proposal from the third tranche of the ‘Mobility Package’ on the proposed regulation on streamlining measures for the realisation of the trans-European transport network (TEN-T). The proposal sets out requirements for the administrative procedures to be followed by the competent authorities in member states in providing approval for projects of common interest on the TEN-T Core Network.
There will be a progress report on a proposal from the second tranche of the ‘Mobility Package’ to amend the directive on the promotion of clean and energy-efficient road transport vehicles. The directive looks to drive the uptake of clean vehicles, including cars, and light and heavy duty vehicles (including vans, trucks and buses).
There will also be a progress report on a proposal from the third tranche of the ‘Mobility Package’ for a regulation on electronic freight transport information. This regulation is designed to correct a perceived lack of standardisation of acceptance by member states of electronic freight documents.
The Council will be asked to agree conclusions, which the UK supports, on the potential of inland waterway transport as an environment-friendly transport mode, offering existing capacity to alleviate congestion on roads.
Finally, under any other business, the presidency will provide information on other current legislative proposals. Additionally, it will report back on the informal meeting of Transport and Environment Ministers that took place in Graz on the 29-30 October 2018, followed by an update on ASEAN negotiations. The Luxembourg delegation will present information on the social agenda in aviation. The Commission will supply information on sustainable transport infrastructure charging and internalisation of transport externalities, and finally, the Romanian delegation will provide information on the work programme of their forthcoming presidency of the Council of the European Union.
[HCWS1129]
Oral Answers to Questions
Chris Grayling Excerpts(5 years, 5 months ago)
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Mary Creagh (Wakefield) (Lab)
The Secretary of State for Transport (Chris Grayling)
We are now running significantly more services on Northern than we were prior to May, but I am aware that there are continuing performance issues, particularly this month. In September, with Transport for the North, which jointly manages this franchise with my Department, I appointed leading industry figure Richard George to co-ordinate the efforts of the train operators and Network Rail to improve the reliability of services in the north. Richard is also working with industry and TfN to examine the significant increase in services which the operators committed to in December 2019. It is essential that these changes are realistic and deliverable, given the need for rail operators to provide a reliable service to passengers.
Mary Creagh
I thank the Secretary of State for that reply, but he is showing a bit of a tin ear to the lived experience of my constituents. One of them took six hours to travel the 75 miles between Wakefield and Scarborough, which, with a good wind, I could have achieved on a bicycle in the same amount of time. Why has capital investment in the north fallen—as the Institute for Public Policy Research has shown—when the need for investment in our services has never been higher?
Chris Grayling
I would make two points. First, the IPPR keeps using misleading comparators. The Infrastructure and Projects Authority figures, which are the official figures prepared for the Government, have already shown that, per capita, the north is currently receiving and will over the coming years be receiving more expenditure per head of population than the south.
Of course, in the north—the hon. Lady’s area—the flagship programme for the next five years on rail, the trans-Pennine upgrade, is the most substantial anywhere in the country. Her constituency is also benefiting from increased services on the route to Knottingley.
I accept that there have been some real issues with the TransPennine Express on the route to Scarborough. Those are things that need to be addressed. There are performance issues that are not good enough. It is not a question of having a tin ear. We are actively working to try to improve things on a network that is delivering more services, rather than fewer, and in which substantial investment is happening. One of the frustrations is that the timetable problems in the north this year were triggered by an investment programme that was delayed.
Sir Patrick McLoughlin (Derbyshire Dales) (Con)
Will my right hon. Friend ensure that we get a full picture of this? Will he ensure that we see what new trains were being made available in the north between 1997 and 2010, and between 2010 and let us say 2020, so that we can see the investment that is going on by the Government in the north?
Chris Grayling
My right hon. Friend makes an important point and I pay tribute to him for ensuring the investment programme that is currently taking place. The reality is that, in that decade, there were no new trains in the north and no investment: the Labour party let a standstill franchise on the northern rail network. It is this Government who are renewing every single train in the north of England and it is long overdue.
Graham Stringer (Blackley and Broughton) (Lab)
The Secretary of State goes back to the timetable changes, but currently one in four Northern trains are delayed or cancelled and nearly one in three TransPennine trains are delayed or cancelled. Is not it time that he took control and took these franchises back, so that we can have a proper rail service in the north of England?
Chris Grayling
That is precisely why I say that I am not satisfied with the current performance issues. That is why we have appointed Richard George to understand why the service is not performing adequately. It is of course hampered by the fact that some of the performance issues recently have been caused by the elderly Pacer trains, which are being phased out, starting in the coming weeks. However, we need to do everything we can and we will continue to do everything we can, in partnership with Transport for the North, to identify the ways of getting performance up. It is not simply a question of changing ownership of the franchise or control of the franchise. There is not a magic team down the corridor waiting to step in and make this work better. We have got to make it work better.
Mr Robert Goodwill (Scarborough and Whitby) (Con)
As we have heard, TransPennine passengers to and from Scarborough have had to endure a summer of delays. Indeed, because of drivers’ hours, many trains have been terminated at York, leaving passengers waiting an hour for the following service, if it is not also delayed. Although there has been some improvement, when are we likely to see a return to normality?
Chris Grayling
I absolutely sympathise with people in Scarborough. Of course, we are introducing additional services to Scarborough in the coming months, so that there will be a Northern service there as well. The work that Richard George is doing to look at why these performance issues are happening is similar to the work we did with Chris Gibb on Southern, which has led to an improvement in performance on that network, and I am absolutely clear that we have to deal with the issues that he highlights.
Alan Brown (Kilmarnock and Loudoun) (SNP)
Let us get to the real north, which is Scotland. Overall, the Abellio ScotRail franchise is the best performing large franchisee, but 50% of delays and cancellations are attributable to Network Rail. The Secretary of State is being obstinate with us, but will he not consider devolution of Network Rail to allow the Scottish Government to take full responsibility? It would generate savings, which would also help to offset the £400 million shortfall from his Government.
Chris Grayling
The hon. Gentleman makes that argument regularly, but the devolution of Network Rail was not recommended in the report produced on devolution in Scotland. Given the SNP’s less-than-good record in running other services in Scotland, it escapes me why he thinks that devolving Network Rail would make a difference to train services in Scotland.
Alan Brown
As usual, the Secretary of State shows his full knowledge of Scotland. He will be aware that the rail industry review panel includes Tom Harris, a former rail Minister, who has written a report that calls for the devolution of Network Rail to Scotland. I wrote a letter to the Secretary of State on 15 October but he has not responded. Will he now confirm that he has not restricted the terms of reference for the rail industry review panel, and that if they recommend devolution of Network Rail to Scotland, he will act on that?
Chris Grayling
I have not set any limits on that approach. I have asked the panel to consider the question of devolution, as well as how we can improve the workings of the railways. It is no secret that in my view we need a more joined-up railway to meet the challenges of a system that is under intense pressure. The Government are investing record amounts in infrastructure upgrades, including spending money in Scotland, and that is in addition to using the Barnett formula, which is the norm for the allocation of funds to Scotland. We have a railway that is bursting at the seams, and it needs to work better if it is to deal with the pressures on it.
Rachael Maskell (York Central) (Lab/Co-op)
Since the announcement of the northern powerhouse agenda, transport spend per person has risen by twice as much in London as it has in the north. New analysis of Treasury figures published this week shows the gap widening, with an increase in spend of £326 per person in the capital, just £146 per person in the north, and the amount even falling in Yorkshire—more than in any other region—resulting in poor reliability and capacity. Why such under-investment?
Chris Grayling
I am the Secretary of State who has planned over the next five years for 50% of the rail enhancement budget that the Government are putting in place to be spent in the north—on upgrading the east coast main line, on the trans-Pennine upgrade and on other schemes that will make a real difference. When Labour Members were in government they did none of that, so you will forgive me, Mr Speaker, if I take no lessons from the Labour party about investment in transport in the north. We are getting on with delivering it.
Mr Ranil Jayawardena (North East Hampshire) (Con)
The Secretary of State for Transport (Chris Grayling)
We recognise the appalling disruption that some passengers experienced following the May timetable introduction. We have to be very clear that this cannot be repeated. The final Glaister report, providing recommendations on future changes that can be made to prevent disruption at timetable changes, will be published shortly. We are also working closely with the rail industry to provide a seriously enhanced level of assurance on planned timetable changes in December 2018 and May 2019.
Tom Brake
Does the Secretary of State agree that, contrary to the impression that he gave in this letter, the Department for Transport did have a significant role in the timetabling fiasco? In fact, according to the Office of Rail and Road interim report, the DFT’s decision to phase in the introduction of Thameslink stretched resources badly. Does he agree that one of the most damning comments in that report is that the industry placed engineering requirements ahead of serving passengers? How will he ensure that in future the DFT accepts full responsibility for its failures and the industry prioritises passengers over rails and rolling stock?
Chris Grayling
The latter point is extremely important. It is not good enough to have Network Rail too focused on engineering and not focused enough on passengers. It is one of the problems in the rail industry and why we have already started to work towards a more joined-up railway through an alliance structure. As I said with the announcement of the rail review, that is an essential part of delivering the much more substantial change that is necessary, given what happened this summer.
Jeremy Lefroy (Stafford) (Con)
Does my right hon. Friend appreciate that it is not just timetable changes that are important, although they have been improved on lines from London to Stafford, but the number of coaches on the trains? On the London Northwestern railway—the LNWR—we are seeing very good services, but the trains are too short, with four carriages, instead of eight. Will he have a look at that?
Chris Grayling
I will certainly have a look and the rail Minister will be happy to talk to my hon. Friend about that. We are supporting a programme of substantial investment in new rolling stock all around the country, which will benefit passengers. New coaches will be arriving on the LNWR franchise, but we could certainly have a discussion about where they are serving.
Mr Clive Betts (Sheffield South East) (Lab)
In the last timetable changes, on the midland main line, Stagecoach was forced to lengthen the journey times of peak time trains from Sheffield to London to accommodate more Thameslink commuter trains. Is it true that the Department for Transport has told Stagecoach it cannot revisit that in the next timetable changes because of the shambles last time and the nervousness that has created in the Department?
Chris Grayling
We would dispute that we have done anything to disadvantage Sheffield to help Govia Thameslink Railway. We are of course doing a massive upgrade programme on the midland main line. I pay tribute to all those involved in the recent Derby station remodelling. Many projects have gone badly wrong; that did not. It was handled very well. Further improvements are happening up and down that line, as part of the biggest modernisation programme on that route since Victorian times. That work will continue. We will do everything to make sure, if we can, that the timetable remains as intact as possible as those changes happen.
Several hon. Members rose—
Chris Davies (Brecon and Radnorshire) (Con)
Is there any advice that the Secretary of State can give to the Welsh Transport Minister? Changes to the franchise and timetable changes have resulted this week in the chief operating officer coming out with a statement saying that too many trains have been cancelled, delayed or have arrived late, with fewer carriages than normal—and that is under a Labour Government.
Chris Grayling
My hon. Friend puts his finger on the nub of the issue. The Labour party says, “If we just wave our magic wand, it will all be fine.” The reality is that we have a deeply congested railway facing big operational challenges. We are investing substantial amounts in it but—he points out the situation in Wales—there are no magic solutions anywhere in the country, under any Government.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
The Secretary of State can duck and dive but the fact is that there is a lack of strategic leadership in his Department. What we found in Huddersfield is that, overnight, they cancelled the link between Huddersfield and Wakefield Westgate, so people cannot get a main line train unless they go to Leeds—and nobody in Huddersfield would want to go to Leeds at any time. The fact of the matter is that we want good strategy and policies that stop people living in chaos and not being able to get to work or go on holiday.
Chris Grayling
What the hon. Gentleman needs are policies that invest money in rail in the north to deliver—as I know is happening at his station—new trains to replace long out-of-date trains and provide more services for passengers. That is what we are aiming to do and what we are doing.
Alan Mak (Havant) (Con)
Neil O’Brien (Harborough) (Con)
The Secretary of State for Transport (Chris Grayling)
The Government have a massive investment programme taking place in our strategic road network, where we have just announced £25.3 billion for Highways England for the next road investment period. We are also committed to a substantial investment in the major road network, the next tier down of roads, and indeed in large local major roads, where some important connecting projects are needed around the country.
Neil O’Brien
The A6 in Kibworth in my constituency has a major problem with air quality and congestion every morning. Will the Secretary of State look closely, as part of plans for the major route network, at proposals from Leicestershire to solve that serious problem?
Chris Grayling
I hope the major road network fund will enable us to deal with problems such as the one my hon. Friend has identified. The A6 is one of the roads I expect to be eligible for that funding. I am pleased that we are moving ahead with that and particularly pleased with the first schemes we announced. We are doing what the Labour party never did, which is looking after Barrow-in-Furness and finally get rid of the Grizebeck bottleneck on the A595. That is the kind of thing Conservatives do for the north and Labour never did.
Martyn Day (Linlithgow and East Falkirk) (SNP)
Gillian Keegan (Chichester) (Con)
The Secretary of State for Transport (Chris Grayling)
I shall start with some good news for the south-west. A couple of months ago, I announced that we would be extending the current public service obligation on flights from Newquay to Gatwick. I also spoke at the Dispatch Box about the potential benefits for Newquay airport and the south-west of a direct link to Heathrow, once Heathrow expands. I am pleased to say that that link is going to happen sooner, and that it will be starting in the spring of next year, supported by the Government. I think that it will provide a really good boost to business in the south-west, providing it with connections to important destinations around the world.
Gillian Keegan
I thank the Secretary of State for his answer. The A27 in Chichester is at capacity and that is restricting economic growth. The local councils have approved their local plan review, which is now out for public consultation and, as is required to pass the process, it includes minor improvements to the road. The strategic solution, however, is the only viable answer to the problems with the A27. Can my right hon. Friend confirm that it is still the Department’s intention to fund major road improvements around Chichester in the recently increased road investment strategy 2—RIS2—budget?
Chris Grayling
I know how important this is to my hon. Friend and to many of her constituents. She will know that the divisions of opinion in the local community have put the project back by a number of years. I do not want to give her undue cause for optimism about its position in the queue, because it was certainly a setback when the local authority decided to reject Highways England’s plans, but it remains the view of the Government and Highways England that improvements in the area around her constituency will be necessary in the future.
Paul Blomfield (Sheffield Central) (Lab)
Diana Johnson (Kingston upon Hull North) (Lab)
If the Government really are serious about Northern Powerhouse Rail, will they commit to giving it precedence over Crossrail 2? Will they also commit to starting with the route from Hull to Leeds, as that part of the track has had very little investment over the years?
Chris Grayling
We remain absolutely committed to Northern Powerhouse Rail. I have been clear that the two projects—Crossrail 2 and Northern Powerhouse Rail—must march in lockstep. The hon. Lady will be aware that we have just provided an additional £40 million for the continuing development of Northern Powerhouse Rail. Transport for the North is working on the business case right now. We provided for passive provision for Northern Powerhouse Rail in the structure of HS2, so the necessary junctions will be there. We are very committed to the project.
Jack Brereton (Stoke-on-Trent South) (Con)
Dan Carden (Liverpool, Walton) (Lab)
Crime is soaring on the railways. It is up a fifth in the past year, and that is fuelled by a spike in sexual offences, which are up 16%, and violent crimes, which are up 26%. The highest increases are in areas where trains operate without guards—just one symptom of our broken franchise model. The guards in the National Union of Rail, Maritime and Transport Workers are striking for passenger safety on Northern rail. Why will Ministers not follow the evidence and end the expansion of driver-only operation?
Chris Grayling
The problem is that even in areas where there is an offer to the RMT that guards will remain on the trains, they are still on strike. This strike is not about safety—the national safety regulator for the railways has said that it is nothing to do with safety. We are trying to deliver a better railway, and the reality is that if guards are not standing at the back of trains waiting to press a button, they are better able to look after passengers. It is also worth saying that on the new trains that are being introduced by this Government right across the country, the introduction of closed circuit television will make a real difference to safety. May I also pay tribute to the work of the British Transport police? They do an excellent job in trying to protect passengers on the railways.
Maggie Throup (Erewash) (Con)
What assessment has my right hon. Friend made of the review into non-statutory property schemes for High Speed 2, and why did it fail to deliver a bespoke package for Long Eaton, which has been promised by Ministers on more than one occasion?
Chris Grayling
My hon. Friend and I have had many discussions about Long Eaton. I am very keen to make sure that we have done the right thing by the different people affected by the proposed railway line through Long Eaton, whether it is the businesses affected or the people who live in the railway cottages. If there are things that we are not yet doing, I suggest that she and I sit down and go through it again.
Chi Onwurah (Newcastle upon Tyne Central) (Lab)
It costs me more to get a bus a few stops up the West Road in Newcastle than to cross the whole of London. It costs more to get a bus from Newcastle to Amble—30 miles—than to get a bus from London to Newcastle—290 miles. Can we have a comparative study of the cost of bus travel in Newcastle under a Tory Government and in London under a Labour Mayor?
Scott Mann (North Cornwall) (Con)
I welcome the Secretary of State’s announcement and the Department for Transport’s ongoing commitment to connecting Cornwall. What assessment has he made in light of today’s announcement on Heathrow of the potential for exports from Cornish businesses and for inbound tourism, and of their effect on the Cornish economy?
Chris Grayling
Improving transport connections for the south-west is essential, and it is one of the parts of the country that needs those improved transport links. A range of things are happening: the number of local trains within Devon and Cornwall is increasing, new trains are now serving that route, and road improvements have taken place. Now, there will be a better link for business into Heathrow airport. This is all part of making sure that we deliver on our promises for better transport in the south-west.
Several hon. Members rose—
EU Transport Council
Chris Grayling Excerpts(5 years, 6 months ago)
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The Secretary of State for Transport (Chris Grayling)
I attended the informal meeting of members of the Transport and Environment Councils in Graz, Austria on 29 and 30 October.
The programme for the informal meetings included separate sessions for transport and environment Ministers and a joint session for both Ministers entitled “Starting a new Era: clean, safe and affordable mobility for Europe”.
On 29 October, Transport Ministers were invited to discuss the Commission’s proposal on “Discontinuing seasonal changes of time (summer time)”. My noble Friend the Parliamentary Under-Secretary for the Department for Business, Energy and Industrial Strategy, Lord Henley, represented the UK at this session and explained that the UK Government do not support the proposed directive. He also noted the Commission had fallen short on the principles of subsidiarity and proportionality as has been highlighted by the decision of the House of Lords to issue a reasoned opinion. (The House of Commons European Scrutiny Committee has subsequently recommended that the House of Commons also issue a reasoned opinion on this matter.)
There was broad consensus in Council that the timetable proposed by the Commission was too short and thus there was widespread support for the presidency’s intention to provide for an extension. A small minority of member states were notably critical of the proposal while the majority welcomed the initiative, albeit noting its deficiencies. Several member states advocated the need to co-ordinate across borders in order to know the final time zone arrangements before taking the decision to abolish daylight saving.
Environment Ministers were then invited to discuss “The future of European environmental policy”. The Secretary of State for the Environment was represented by officials from the Department for Environment, Food and Rural Affairs. Ministers broadly agreed on the need for an eighth environment action programme (EAP) with a consensus that it should take full account of climate change given the report from the Inter- governmental Panel on Climate Change (IPCC) on global warming of 1.5 °C published last month.
At the joint session for Transport and Environment Ministers on 30 October, interventions were wide-ranging with common themes being the need to move towards zero emissions vehicles and enabling people to choose sustainable ways to travel. These themes were reflected in the presidency’s “Graz declaration” published after the meeting. For the UK, I stressed the importance of ambition to accelerate the development and introduction of zero emission vehicles, recalling that the Prime Minister had hosted the world’s first zero emission vehicle summit in Birmingham recently.
The subject for the afternoon session was road safety. Transport Ministers shared experiences with progress to date in reducing casualties and their perception of the challenges in making more progress. In my intervention I noted that human error was a factor in over 85% of road accidents, and that connected and automated vehicles offered opportunities to make our roads safer.
In the margins I met with a number of EU Transport Ministers to discuss current EU transport business and how relationships will evolve as the UK leaves the EU.
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Rail Review: Terms of Reference
Chris Grayling Excerpts(5 years, 7 months ago)
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The Secretary of State for Transport (Chris Grayling)
I wish to update the House on the Government’s comprehensive rail review, which we intend to use to build on the challenges facing a busy railway and in particular to deliver a network that is fit for the future and better serves passengers. I shall also update the House on the current performance of Northern and GTR.
For a generation before the Railways Act 1993, British Rail was in seemingly terminal decline. Passenger numbers were falling, stations were closing and short-term decisions were being made at the expense of the travelling public. The 1993 Act brought investment, new services and better reliability. A quarter of a century later, the situation is very different. Our UK rail network is at capacity in commuter areas, with many of the most intensively used lines in Europe. On many routes, it is simply not possible to squeeze more trains on to the network. As we now know, the railways were not in fact in terminal decline; they had been starved of investment. The period of privatisation has reversed the decades of decline and heralded the fastest expansion of our railways since they were built by the Victorians. It has also delivered billions of pounds of investment and radically improved safety. Our railways are now among the safest in the world.
Nevertheless, that welcome expansion has brought new, acute challenges. On major commuter routes throughout the country, the trains are packed each morning. Network Rail, which represents a third of the industry, based on spend, is nationalised. It is also responsible for more than half the daily disruption. But no matter whether it is a failure of the track, a fault with a train or a customer incident, it is because there is little resilience or margin for error in the system that, when things go wrong, the knock-on effect can last for hours. The problem is compounded because the railway is run by multiple players without clear lines of accountability.
When I took over as Secretary of State for Transport in 2016, I said that change was needed and started the process of bringing together the operation of the tracks and trains, which was split up in the 1990s so that we had single operational teams. That process is helping to overcome problems caused by fragmentation in some areas and creating a railway that is more responsive to passenger needs. I also said that that change needed to be evolutionary and not revolutionary, to avoid destabilising the industry, so we have started to shape alliances between the teams running trains and the teams running track to create a more joined-up and customer-focused structure.
The difficulties with the introduction of the new timetable over the summer and the problems that we are experiencing with many major investment projects has convinced me that the process of evolution is no longer enough. The collapse of Virgin Trains East Coast has also highlighted the need for radical change. Put simply, we need that change to ensure that the investment going into the railways from both the Government and the private sector results in better services for passengers and delivers the improved reliability, better trains, extra seats and more-frequent services that we all want to see.
Last month, my Department announced a root-and-branch review of how the rail industry works. Keith Williams, the deputy chairman of John Lewis & Partners and former chief executive of British Airways, is to lead the work, and I expect him to make ambitious recommendations for reform to ensure that our rail network produces even greater benefits for passengers and continues to support a stronger, fairer economy. Keith Williams’ expertise in driving customer service excellence and workforce engagement will be incredibly valuable as we reform the rail industry to become more passenger focused.
Keith will be assisted by an independent expert panel from throughout the country, with expertise in rail, business and customer service. The panel will ensure that the review thinks boldly and creatively, challenging received wisdom, to ensure that its recommendations can deliver the stability and improvements that rail passengers deserve. It will be supported by a dedicated secretariat and will now begin to engage with the industry, passengers, regional and business representatives, and others throughout the country, drawing on their expertise, insights and experiences to inform the review.
The review will consider all parts of the rail industry, from the current franchising system and industry structures to accountability and value-for-money for passengers and taxpayers. It will consider further devolution and the needs of rail freight operators and will particularly take into account the final report of Professor Stephen Glaister on the May 2018 network disruption, which is due at the end of the year and to which I shall turn in a moment.
When we establish what we think is the right approach to mend our railways, it must be properly tested and scrutinised independently. I have today published the rail review’s terms of reference and placed copies in the Libraries of both Houses, together with the names of the review’s independent panel. The review will build a rigorous and comprehensive evidence base, and it will make recommendations regarding the most appropriate organisational and commercial framework for the sector that delivers our vision for a world-class railway. The private sector has an important part to play in shaping the future of the industry, but it is important that the review considers the right balance of public and private sector involvement.
Some have called for the return to a national, state-run monopoly, and for us to go back to the days of British Rail. There is an expectation that taking hundreds of millions of pounds of debt on to the Government books will magically resolve every problem. This fails to recognise that many of the problems that customers faced this year were down to the nationalised part of the railways. It also creates the false sense that a Government-controlled rebrand would somehow make every train work on time. Those who make this argument fail to tell passengers that the much-needed investment that is taking place today would be at risk, and that taxpayers’ money would be diverted from public services to subsidise losses.
The review will look at how the railway is organised to deliver for passengers. It will look forensically at the different options, and then make recommendations on what will best deliver results in different areas of the country. In autumn 2019, the review will conclude with a White Paper, which will set out its findings, and explain how we will deliver reform. We expect reform to begin from 2020, so passengers will see benefits before the next election.
I have commuted for most of my career—over 35 years —and I still do. I am proud to be in a Government who are supporting a major programme of investment in rail, from Thameslink to the TransPennine upgrade, with new trains in the north, south, east and west. However, we cannot stand by while the current industry structure struggles to deliver the improvements that this investment should be generating. So it is time for change.
The review will not prevent us taking every opportunity in the short term to improve passenger experiences. That is our focus and that is why we are committed to an investment of £48 billion in the railways over the next five years.
Professor Stephen Glaister’s interim report has provided us with an accurate account of the series of mistakes and complex issues across the rail industry that led to the unacceptable disruption that passengers experienced earlier this year. We know that, in the north, delays to infrastructure upgrades, beyond the control of Network Rail, were a major factor in the resulting disruption. Richard George, the former head of transport at the 2012 Olympics, is now working with the industry and Transport for the North to look at any underlying performance issues so that they can be properly addressed.
In the four weeks ending 15 September, in the Northern rail area, more than 85% of services met their punctuality targets; the highest level delivered for Northern rail’s passengers since the timetable introduction in May. Northern is now running 99% of the May timetable and is running more trains than were operating in that region before the May timetable. We are working with Transport for the North and the industry to plan further uplifts in services, while prioritising reliability.
In the coming months, passengers across the north will begin to benefit from the brand new trains that were unveiled last week. The first trains are now operating in parts of the Northern rail area. There will be more than 2,000 extra services a week. Every single Northern and TransPennine Express train will be brand new or refurbished as new, and every single one of the old Pacer trains will be gone.
I now want to turn to Govia Thameslink Railway, which has new leadership. The reliability of its services has improved significantly: since the introduction of the interim timetable in July, 85% of its trains arrived at their station on time, and that performance has been getting better. In addition, in the past week, the first of the new Class 717 trains that will run on its Great Northern routes began testing. GTR is now operating 94% of the weekday timetable that it intended to run from 20 May, including, crucially, all the services in the busiest peak hours. By December, it plans to introduce all planned off-peak services, but there is much more work to do to improve performance, particularly at weekends.
Since the disruption in May, there has been intense scrutiny from the Government and the regulator, the Office of Rail and Road, on what went wrong and why. GTR must take its fair share of the responsibility; its performance was below what we expect from our rail operators. Officials in my Department are now taking action to finalise how we will hold GTR to account for the disruption. My hon. Friend the rail Minister will keep the House updated.
We need now to move forward and take action on these issues, particularly after the disruption that passengers experienced. We need to help passengers plan ahead; to ensure that we do everything we can to reduce delays and cancellations; and to ensure that we properly compensate disrupted fare payers. The review that I have announced today is very necessary. It will continue the approach and ensure that the rail industry is focused on putting the passenger first and that we maximise the benefits of this investment. The lesson of this summer is that it is now time for change and we will deliver that change.
Andy McDonald (Middlesbrough) (Lab)
I wish to thank the Secretary of State for advance sight of his statement, which was actually announced three weeks ago, on 20 September. Although the title of this statement is, “Rail Review: Terms of Reference”, he has not provided me with these terms or the names on the panel. Seemingly, the document sits in the Library, as yet unseen—a fat lot of use that is when we are here to discuss it.
The Department for Transport’s press releases are very fond of exaggerated claims, historical or otherwise, so the froth around the Secretary of State’s rail review announcement was to be expected. We were told that it would be “far-reaching”, “sweeping” and “root and branch”. Really? I am surprised that the Department did not say that it would be the most comprehensive rail review since the Victorian era, or since the time of Brunel, as it usually does. These absurd and ridiculous claims undermine rail policy debate and belie a tragic reality. His review is not far-reaching, sweeping or root and branch. It is none of those things. It is a predetermined prevarication and a way for him to cover up his disastrous failure to run the railway properly and to kick it into the long grass for a year. It offers precisely nothing to the millions of rail passengers who have endured months of misery since the timetabling crisis in May.
A Government review is one of the oldest tricks in the political book. It is usually a good way of kicking a difficult decision into the long grass, so fair play to him—or was it the Prime Minister’s idea? Under the Conservatives, over the past eight years, rail reviews have practically come along with the frequency of buses—McNulty, Brown, Shaw, Hendy, Bowe, Laidlaw, and Hansford. I could go on.
Is it not the truth that we do not need another review to tell us what is wrong with the railway? Why do we need a rail outsider to tell us what we know already? Is this the expertise that we need? Also, can the Secretary of State tell us how many days a month Keith Williams will contribute to the review? My sources tell me one day a month. Hardly worth the bother, is it? The fact that the permanent secretary at the Department for Transport was desperately ringing around retired rail executives urging them to join his review panel tells us something.
Does not this show that the Government are out of touch with the rail industry? What is more, the rail industry has called for public ownership to be considered as part of the review—it is the Rail Delivery Group if the Secretary of State wants the reference. This review has no credibility in the rail industry.
I know that the Minister told a conference fringe meeting in Birmingham last week that rail franchising is broken—I am pleased that we can both agree on something, but we differ on how to move forward. He thinks that bolting together operations and infrastructure into individual partnerships on the east coast or Southeastern is the way forward for rail. In fact, his review is simply a 12-month prelude to justifying this proposal, which no one in the rail industry takes seriously or thinks is workable. It is ironic that, as an ardent Brexiteer, he is doing so much to perpetuate a rail operation system that enriches those foreign Governments who own the majority of rail franchises. His review offers nothing for the private UK supply side businesses, which are the backbone of British industry. Will the review consider the roles of the DFT or the ORR? Practically everything starts or finishes with the Department. Will he suspend all current franchise competitions while this review is underway—Southeastern, East Midlands and west coast? Will he come back to the Dispatch Box and confirm that he will now reward the failure of Govia by re-letting the Southeastern contract to it in the coming weeks?
The rail industry and rail passengers have had a battering this year with failed franchises, a timetabling crisis and cuts to promised investment. There is an ongoing lack of leadership. Will not this 12-month review create even more paralysis, confusion and uncertainty when rail desperately needs stability? It is unacceptable that passengers on GTR and Northern face further inflation-busting fare rises in January. Will the Secretary of State support Labour’s call for a fare freeze on those routes—in addition to compensation?
We need to put the railway back together as a unified whole. The British public are crying out for an accountable railway. They are desperate for a system that is simpler and more efficient. Above all, our railways need to be run in public ownership for the public interest, and his review will do none of those things.
Chris Grayling
I keep hearing from the Opposition that returning to British Rail would deliver transformation for the British public.
Chris Grayling
The hon. Gentleman says that he did not say that, but when he talks about an integrated state monopoly, what else is he talking about except for returning to the days of British Rail? Labour might give it a different name, but it will still be British Rail. The reality is that Labour Members cannot explain the benefits that their policy would actually bring, and their leader does not even know which part of the railway is privatised and which is nationalised. They say their policies will cost nothing, yet the Library says that even taking back control of the rolling stock will cost £17 billion. On the “World at One”, the shadow rail Minister could not even explain how Labour’s policy would work. [Interruption.]
Madam Deputy Speaker (Dame Eleanor Laing)
Order. The hon. Member for Middlesbrough (Andy McDonald) must not shout at the Secretary of State; he has had his go and others will have a go in a minute.
Chris Grayling
The hon. Gentleman asked about supply-side businesses. Supply-side businesses in the UK are doing well at the moment because we are investing record amounts in infrastructure improvements and new technologies that will help performance on the railways. That is ensuring that we have a successful and now internationally competitive rail industry. The hon. Gentleman asked whether the review would look at the roles of the Department for Transport and the Office of Rail and Road. Absolutely; this is a root and branch review of the way the whole industry works.
The hon. Gentleman asked about franchises. As he knows I announced that information three weeks ago. I have taken the view that I do not want to remove the possibility of passenger benefits in the short-term—for example, the longer trains that I want to see on the Southeastern franchise. Therefore, I do not intend to halt a number of the franchises, but I have announced that I will not be going ahead with CrossCountry. Finally, he asked about costs in the industry. When I hear Labour Members line up with the consumer and insist that rail pay increases should be in line with the same inflation measure that everybody else uses, I will take them seriously on costs in the industry. But they do not; all they do is line up with the trade unions.
Tim Loughton (East Worthing and Shoreham) (Con)
The Secretary of State alluded to the Glaister review, which was the last review that he commissioned. The interim report has revealed unmitigated incompetence from all parties involved—GTR, Network Rail and, I am afraid, the Department for Transport. How many more reviews, inquiries, investigations, statements and urgent questions will it take before GTR is at last stripped of its franchise, as all my constituents and those well beyond my constituency actually want?
Chris Grayling
As I said a moment ago, we are working through the final stages of our assessment of the position with GTR. The decisions that we take will be designed to deliver the best outcome for my hon. Friend’s constituents and other passengers. I do not want to take a decision that works against their interest, and I am happy to talk to him about ensuring that we get this right.
Alan Brown (Kilmarnock and Loudoun) (SNP)
I thank the Secretary of State for early sight of his statement. During a previous statement on 4 June—after yet another rail shambles—I asked the Secretary of State to admit that the rail franchise system is broken and to do something to fix it. In that regard, I kind of welcome this review, as long as it is actually thorough and the Government abide by any conclusions that the system is broken and needs to be completely remodelled.
How are we going to get oversight of the rail experts who are needed to sit on the panel? After hearing the statement, I think that we can safely say that the term “rail expert” does not apply to the Secretary of State. Yet again, he argues that the new investment that came in after privatisation was somehow magically due to privatisation, not a change in Government rules that allowed private companies to borrow. Yet again, he blames Network Rail—a body that he is responsible for—and continues to duck his own culpability in the timetable fiasco. And then, in this statement, he talks about the absence of clear lines of accountability; I think we know who has responsibility.
With regards to terms of reference, we need to look at the value for money of the subsidy in the current system—£2.3 billion in 2016-17—as well as the value of public sector bids, and how foreign state-owned companies can come to the UK and make money to reinvest in their own national railways. We also need to look at the devolution to Scotland, especially as Network Rail is too large as it is; the performance of the Department for Transport, especially with regards to the tendering process and the mismanagement of the east coast main line tender; the performance of direct awards and the cost to the taxpayer; and the HS2 and Crossrail delays.
Will the Secretary of State stand up and rule out the privatisation of Network Rail? He seems to keep saying that the nationalisation of Network Rail is the problem. We do not want a repeat of the Tory Railtrack failure by privatising the state infrastructure. Will he rule out privatisation today?
Chris Grayling
The hon. Gentleman continues to argue for the devolution of Network Rail, even though it was not recommended in the report on the powers that should be given to the Scottish Government. I will continue to say to that Scottish Government that when they actually run the rest of their responsibilities well, they will have a better case for arguing for additional responsibilities.
The review will look comprehensively at the structure of the industry. It is designed to deliver genuine change. I do not expect the industry to emerge from this review in the same shape that it is in today. It is important that we find a structure that works for the public and passengers, but I do not intend to transfer the ownership of Network Rail to the private sector.
Martin Vickers (Cleethorpes) (Con)
I welcome the statement. At the moment, there is much competition to gain a franchise, but very little competition once the franchise has been granted. Will the review take account of that and introduce more competition into the actual provision of services?
Chris Grayling
My hon. Friend makes an important point. Competition needs to be a part of the way in which our railway works because it drives better performance for customers. Indeed, the presence of open access operators on the east coast main line has undoubtedly created a better competitive environment for passengers. Whatever structure emerges from the review, there must be a place for open access and competition. There are parts of the network where competition is impossible—it is very difficult to deliver on a single commuter network—but we should always aspire to have a competitive pressure on the industry in a network between major population centres.
Nick Smith (Blaenau Gwent) (Lab)
Will this review consider whether Transport for Wales is given further powers to hold Network Rail to account for delivering improvements to railway infrastructure there? There must be clearer accountability to improve Wales’s railways.
Chris Grayling
Of course, I have proceeded with probably the most substantial piece of devolution of infrastructure in Wales since privatisation, by handing over the valley lines to the Welsh Government to turn into the Cardiff metro. There is a strong case for such an approach. I have also indicated to those leading Merseyrail that I am very happy to transfer their infrastructure to them. As part of the review process, we will certainly look at what the right approach to the issue of devolution might be.
Vicky Ford (Chelmsford) (Con)
Like the Secretary of State, I regularly commute into this place and would like to see an improvement to the rail service that my constituents get, but many of the delays are due to Network Rail, not to Greater Anglia. In my view, the best way to hold the operators to account is to hit them in the pockets and ensure that people get fair compensation when trains are delayed. May I therefore encourage the Secretary of State to continue the work that he is doing to ensure that repayment mechanisms are as effective as possible across the country?
Chris Grayling
I absolutely agree with my hon. Friend. We are now moving ahead with automated Delay Repay and the rolling out of 15-minute Delay Repay, which I know is a matter close to her heart; I hope and expect to bring that to her network in 2019.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
The Secretary of State knows that there will be disappointment with his statement. It is not far-reaching enough and it is insensitive to launch something like this, which has aspirations really to change the rail sector, when he knows that the rail sector is a community of very dedicated people—staff and travellers. We all know that community very well, but he started off by rubbishing one part of it. That is not the way to build the community. Everybody in that sector—I admit that it is a strange sector—knows the confusion that came out of the botched privatisation by the John Major Government, because there are three partners that do not seem to come together. Those three partners will never come together unless we have leadership from the Secretary of State; that is woefully lacking today.
Chris Grayling
In all the conversations that I have had with people across the rail industry, I have met very few who disagree with my analysis about the need to bring back together the operation of the track and the train. What comes out of this review has to deliver a more joined-up railway.
Huw Merriman (Bexhill and Battle) (Con)
I welcome the Secretary of State’s approach. In all the times that he has appeared before the Transport Committee, he has always been open to change and improvements. With that in mind, may I ask him to take into account the great future improvements that can be made from technology? The digital railway will add a third extra capacity without the need to build more track, but that will only occur if the unions and the workforce embrace change and do not use it as an opportunity to go on strike, as I have seen in the Southern network. Strikes have been the single biggest issue, not the other factors that hon. Members mention.
Chris Grayling
My hon. Friend is absolutely right. It is disappointing to see the RMT continuing to strike when none of its members face the loss of their jobs or a loss of money.
Chris Grayling
The hon. Gentleman talks about safety. This is a false approach. We know that the chief inspector of safety on our railways has said that the approach that is now taken on many parts of the network is safe. On Southern, where we had the initial problems, more staff are operating on trains now than before the dispute. So this is not about taking staff away from helping passengers; it is about making the railways run more efficiently. It is tragic that the Labour party does not seem to want that and all Labour Members can do is chime the same songs as their union paymasters.
Jessica Morden (Newport East) (Lab)
As part of the rail review, will the Secretary of State look at cross-border rail services between Wales and England? They are overcrowded and unreliable now. There needs to be far better working with the Welsh Government on this, because demand in my constituency just grows and grows.
Chris Grayling
I absolutely accept that. The hon. Lady highlights one of the problems across the network. The new trains on the Great Western franchise that are coming as part of the Wales & Borders franchise will help. I am also focused with the CrossCountry franchise on making sure that, as we take this forward in the interim period we do not lose sight of the need to expand capacity. She makes a good point, but what she is experiencing is true across the whole network. It is why we have this big programme of train replacement, with longer trains, new trains and more space right across the network, funded by the train operating companies and the lease companies.
Mr Marcus Jones (Nuneaton) (Con)
I welcome my right hon. Friend’s statement. Many of my constituents commute from Nuneaton to Birmingham or Leicester. That service has become so popular that there is a massive demand for new capacity. I hear what my right hon. Friend says about the CrossCountry franchise, and I will be grateful if he says today what that means in relation to the improvement in capacity that is so desperately needed for my constituents.
Chris Grayling
We are now looking at what we do with the CrossCountry franchise over the coming years, but I assure him that one part of that planning is dealing with overcrowding on the routes. There are too many parts of the CrossCountry network where the trains are just too full, and we have to address that, and we will.
Stephen Lloyd (Eastbourne) (LD)
I appreciate the Secretary of State’s statement. I welcome a review of the railways, but if the Government are admitting that the railways are not working, they should freeze fares until the review reports and the changes are made. This certainly means cancelling the planned rises in January, particularly as my constituents who travel on Southern Rail and passengers across the country have had such a torrid time. Does the Secretary of State agree?
Chris Grayling
In those areas where people have had a torrid time we have provided a month’s free travel. We did that on Southern during the worst days of the industrial dispute, because that delivers quicker and much more substantially money into the pocket of people who have suffered. That has been a good approach. It amounts, together with Delay Repay to almost 10% of the annual cost of travel for a season ticket holder, and it gets the money to people quicker.
Robert Courts (Witney) (Con)
I warmly welcome the Secretary of State’s review and his statement today. Does he agree that it is critical that the review delivers not just vital improvements on lines such as the Cotswold line in my constituency but the improvements to reliability, stability and accountability that my rail-travelling constituents deserve?
Chris Grayling
I agree. The problem is that we now have a system that is fragmented but under intense capacity pressures. We need to have a railway that is more joined up, where lines of accountability are clearer and where the response to problems, which will always arise on a busy network, is much more joined up and quicker for passengers.
Chris Elmore (Ogmore) (Lab)
The Secretary of State will be aware that the Welsh Government have recently awarded the new Wales franchise. He mentioned devolution in his statement. If lessons are to be learned from that far better, more customer and investment focused franchise, will the Williams review draw on them so that best practice can be shared between different franchises? It is important that we learn from devolution rather than simply criticise it all the time.
Chris Grayling
I do not criticise it all the time; I have done the biggest piece of devolution on the railways for a long time, with the creation of the Welsh Valleys line. I look forward with interest and hope that the new Welsh franchise will deliver something significantly better for passengers. Of course I am in favour of sharing best practice across the whole railway and the whole transport system.
Alec Shelbrooke (Elmet and Rothwell) (Con)
May I ask that, as part of the review, Network Rail is made to keep some of the promises that it has made. My right hon. Friend will know what I am going to say because I bang on about it every time I see him, but the Access for All bridge at Garforth was promised years ago now, and all I have had is excuses and misdirection and no idea where the money given by the former Chancellor, George Osborne, has gone. As part of the review will my right hon. Friend ensure that, when promises are made they are delivered to my constituents because it is frankly an utter embarrassment?
Chris Grayling
I understand my hon. Friend’s frustration. A number of station projects did not make it in the control period that is about to end. We have funding for accessibility projects in the next control period, and I will certainly want to see those that are needed and have already been promised get prominence in the list of projects that we assemble to use that money.
Paula Sherriff (Dewsbury) (Lab)
In his statement, the Secretary of State alluded to the utter chaos that we had seen in the north during the summer. Unfortunately, things have not improved measurably for my constituents. Will he take this opportunity to tell us exactly what dialogue he is having with the managing director of TransPennine Express trains? I understand that he has just received a significant pay increase, which appears as if he is being rewarded for failure.
Chris Grayling
My officials and I are in conversations with those overseeing the railways in the north all the time. Clearly, there have been improvements. TransPennine Express had issues with the timetabling of Northern, which had a knock-on effect on its services. That situation has improved. There is further to go, but the hon. Lady’s constituents will benefit from the arrival of new trains this autumn. One of the issues on TransPennine Express is capacity. More capacity will be coming on through. I am always happy to talk to her off line because I want to ensure that local problems are dealt with. She knows that she can always collar me in the Division Lobby—we are not always in the same Lobby, of course, but she is always welcome to grab me in the corridor if there are any particular issues.
Jonathan Edwards (Carmarthen East and Dinefwr) (PC)
Diolch yn fawr, Madam Deputy Speaker. The Wales Governance Centre recently published figures that showed my country would have received an extra £5.6 billion since 1999 if the rate of infrastructure investment had kept pace with that of London and the south-east of England. Will the terms of reference for the review include how to ensure a more equitable share of investment so that Welsh taxpayers’ money is no longer siphoned off to invest in infrastructure here in London and the south-east?
Chris Grayling
I do not think that the Welsh can ever claim that their money is siphoned off to pay for the rest of the country, given the amount of support from taxpayers elsewhere in the UK that goes into Wales, but we will be looking at all aspects of the industry, how we operate different parts of the infrastructure and ensuring that we do the right things for the whole of the UK.
Alex Sobel (Leeds North West) (Lab/Co-op)
My constituents who use the Wharfedale and Harrogate Northern rail lines are still experiencing missed and late services and are still travelling on Pacer trains. I have met Northern a number of times. They have promised the new trains by December and no more Pacers by March, and that these problems will be alleviated. How will the new terms of reference ensure that those demands are met?
Chris Grayling
I was in Harrogate recently, talking to passengers at the station, and I know that the new trains have started to arrive on the line from Leeds north through Harrogate. I understand from my hon. Friend the Member for Harrogate and Knaresborough (Andrew Jones) that he has had a number of letters from constituents praising the new trains and saying that it is a great new departure for the local railway. Of course it takes time for a new fleet of trains to arrive. The Pacer trains will be going, the sooner the better from my point of view, but the good news for people using that line is that they are one of the first in the north to get the new trains.
Jeff Smith (Manchester, Withington) (Lab)
If this is going to be a truly comprehensive review, will the Secretary of State look again at the ownership of stations, especially those in Greater Manchester, where Transport for Greater Manchester made a strong case for better integrated services if it were able to take over ownership of the stations?
Chris Grayling
We will look at all aspects of devolution. The issue was that Transport for Greater Manchester wanted us to give the money for it to do the stations up, and then effectively we would pay it back out of rail revenues that would flow back through the franchise to the Government, as part of the subsidy we provide. It was not a compelling deal. Instead, I offered both money and the expertise of London and Continental Railways—the development arm of the Department for Transport—to help it maximise the potential of those stations, and that work is happening at the moment.