Rail Review: Terms of Reference

Chris Grayling Excerpts

Thursday 11th October 2018 Commons Chamber

[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.

[Andy McDonald]

I didn’t say that.

[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.

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[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.

[Andy McDonald]

It is about safety.

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[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.

HS2 Working Draft Environmental Study

Chris Grayling Excerpts

Thursday 11th October 2018 Written Statements

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

I would like to update the House on the progress of High Speed 2.

High Speed 2 will be the backbone of our country’s rail network. The first major railway to be built north of London for 150 years, it will improve connectivity between our major cities and increase rail capacity where it is most needed by adding extra services onto our busiest routes. Once completed, HS2 is planned to serve around 300,000 people each day. No alternative transport option can achieve such an increase in rail capacity and connectivity.

HS2 is truly national in its scope and can be a transformative project for our country. Its vision is to be a catalyst for economic growth.

HS2 Ltd was set-up in January 2009. The progress it is making on the project is outlined in its annual report and accounts for 2017-18, published on 23 July 2018, and its corporate plan for 2018-21, published on 19 June 2018. In September 2018 HS2 Ltd also published its skills, employment and education strategy which sets out an aim to help the next generation develop the technical skills not only to design and build HS2, but to deliver the project pipeline of the UK’s future infrastructure and leave a lasting skills legacy for the country. The training, apprenticeships and foundation degrees offered at the national college for high speed rail, with campuses in Doncaster and Birmingham, are central to our strategy.

HS2 is already delivering economic benefits across the UK. Around 7,000 jobs are already supported by the project and designing and building the railway is forecast at peak to support around 30,000 jobs, including 2,000 apprentices. Around 2,000 businesses from across the UK have already been awarded contracts to support the project.

HS2 is not an end in itself, but rather a means to achieving balanced growth, investing in transport to unlock jobs, regeneration and housing, and creating a more prosperous national economy. In July 2018 outgoing HS2 Ltd chair Sir David Higgins published his report “HS2: Realising the Potential” demonstrating that the benefits of HS2 are already being realised across the UK. Places on the route, including Leeds, Manchester, Toton and Crewe, have outlined bold plans in their growth strategies. Birmingham, the heart of the HS2 network, in particular is already seeing an impact from HS2 in terms of jobs, business relocation and regeneration. The Government also recently announced plans for the creation of a new, locally-led development body for the area around Toton in the east midlands.

The development of these strategies was a recommendation from the HS2 growth taskforce report in 2014. We continue to work with places on the HS2 route on the delivery of their plans and undertake periodic assessments of progress to ensure the full potential of HS2 is being realised.

HS2 Phase 1

On Phase 1 (West Midlands to London), design and enabling works are ongoing. Major procurements have included: issuing an invitation-to-tender for rolling stock; Lend Lease has been appointed as the master development partner for Euston station, to work with HS2 Ltd, the London Borough of Camden and others to develop a master plan for the sustainable mixed use development at the Euston station site; and HS2 Ltd has awarded design contracts for the four new high speed stations in Birmingham and London.

HS2 Phase 2a

In 2015 the Government announced their intention to accelerate the delivery of Phase 2a (West Midlands to Crewe). The hybrid Bill passed its Second Reading on 30 January 2018 by 295 votes to 12; the Select Committee published its Second Special Report of Session in July 2018, to which the Government will respond in the autumn. The legislation will return to the House in spring 2019 for further consideration.

HS2 Phase 2b and the working draft environmental statement

On Phase 2b (Crewe to Manchester and West Midlands to Leeds), we are making further significant progress. This phase will complete the full “Y network” and deliver the full benefits of the scheme in terms of capacity, connectivity and economic growth across the UK. In July 2017, I confirmed the route from Crewe to Manchester and Birmingham to Leeds. I am today announcing a consultation by HS2 Ltd on the working draft environmental statement for Phase 2b, which is a key part of preparing the future hybrid Bill to seek powers for its construction. The consultation will run for 10 weeks.

The working draft environmental statement gives those affected the chance to review and comment on initial assessments of the environmental impacts from HS2 Phase 2b. It shows the consolidated construction boundary, proposed construction methodologies at each site, construction and operational phase plans, environmental mitigation and land take to support important work such as habitat replacement, rail heads and construction traffic routes. Responses to the consultation will allow HS2 Ltd to improve further its understanding of the impacts, risks and concerns that residents and businesses may have concerning the route. The consultation outcome will inform the design, mitigation and environmental impact assessment of Phase 2b ahead of the statutory environmental statement, which will be published as part of the hybrid Bill for Phase 2b.

The working draft environmental statement includes a non-technical summary; 28 community area reports; and a working draft equalities impact assessment which assesses the impact of the proposed Phase 2b scheme against the requirements of the public sector equality duty. To support the consultation, HS2 Ltd will be arranging 30 consultations events in the community areas along the Phase 2b route.

It is important to note that the working draft environmental statement is based on the Phase 2b route confirmed in summer 2017. A range of further potential local changes to the route, in particular to facilitate Northern Powerhouse Rail, are under development. Last year we provided £300 million to future proof HS2 for the proposed Northern Powerhouse Rail, which is a major strategic rail programme designed to transform connectivity between the key economic centres of the north. I expect to consult on such changes separately next year. In particular, the working draft environmental statement shows an “HS2 only” design for stations at Manchester airport and Manchester Piccadilly. Transport for the North’s strategic business case for Northern Powerhouse Rail is due in late 2018 and we will consider how these designs could be modified to support future plans for Northern Powerhouse Rail.

In order to reflect changes to parliamentary timetables after the 2017 General Election and lessons from the development of Phase 1, and to allow Northern Powerhouse Rail interfaces to be properly explored for the Phase 2b hybrid Bill, I am updating the intended deposit date for the HS2 Phase 2b hybrid Bill to mid-2020. The intended opening date for Phase 2b remains unchanged at 2033.

This update on progress follows a previous update in July 2017 when we announced the Phase 2b route. The Government will ensure that Parliament is provided with further updates on HS2’s progress at least once a year.

Copies of the working draft environmental statement, non-technical summary and the working draft equalities impact assessment have been deposited in the Libraries of both Houses.

[HCWS989]

Transport

Chris Grayling Excerpts

Thursday 12th July 2018 Ministerial Corrections

[Mark Menzies (Fylde) (Con)]

I have a wonderful piece of transport infrastructure in my constituency called Blackpool airport. Will the Secretary of State tell me what steps will be taken to ensure that with a third runway at Heathrow, we will see improved connectivity to my part of the north-west?

[Chris Grayling]

This is why I am committed to saying that the 15% of slots set aside for regional connections are set in stone. We are not going to see those suddenly disappear from 15% to 10% to 5%, with routes diverted elsewhere. The expansion of Heathrow is a really important part of delivering improvements right around the United Kingdom, and I am committed to making sure that happens.

[Official Report, 5 July 2018, Vol. 644, c. 476.]

Letter of correction from Chris Grayling:

An error has been identified in the response I gave to my hon. Friend the Member for Fylde (Mark Menzies).

The correct response should have been:

[Chris Grayling]

As per my previous response to the hon. Member for Brentford and Isleworth (Ruth Cadbury), I am committed to saying that around 15% of slots set aside for regional connections are set in stone. We are not going to see those suddenly disappear from 15% to 10% to 5%, with routes diverted elsewhere. The expansion of Heathrow is a really important part of delivering improvements right around the United Kingdom, and I am committed to making sure that happens.

Roads Update

Chris Grayling Excerpts

Monday 9th July 2018 Written Statements

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

Today I am publishing the Government’s zero emission road transport strategy “Road to Zero”. The transition to zero emission road transport is happening now across the world. It will mean fundamental changes to the global automotive market, worth over £1.5 trillion a year, bringing new jobs and growth opportunities for the UK. These include those we are already enjoying through Nissan in Sunderland, producing one in eight zero emission cars bought in Europe in 2017, and the London Electric Vehicle Company near Coventry, which put the world’s first electric black taxis on the streets of London earlier this year.

This Government’s vision is to build a Britain that is fit for the future. Leading the industries of the future and building the UK’s competitiveness in the face of major global economic trends are key parts of our industrial strategy. That is why our 2040 mission to put the UK at the forefront of the design and manufacturing of zero emission vehicles is central to the future of mobility and clean growth industrial strategy grand challenges.

The benefits are not just economic. Road transport is one of the biggest contributors to poor air quality in some of the UK’s towns and cities. And transport is the largest greenhouse gas-emitting sector in the UK. The work we are doing today to make road transport cleaner will mean we are handing the next generation a better, cleaner, greener Britain. It will improve the health and lives of people across the UK. It will help us achieve our statutory long-term greenhouse gas targets and our air quality commitments.

We have already made significant progress thanks to this Government’s £1.5 billion investment. Today there are more than 150,000 ultra low emission vehicles in the UK and around 14,000 public chargepoints, with hundreds more being added every month. There is a network of over 1,300 rapid chargepoints—one of the largest in Europe.

But we need action on a number of fronts to give certainty to the market and the consumer that the Government are fully behind this transition. The “Road to Zero” strategy sets out both our long-term ambitions and the measures we are taking to get there. It builds on our industrial strategy, automotive sector deal, clean growth strategy and the UK plan for tackling roadside nitrogen dioxide concentrations.

Government’s long-term ambitions

As set out in the Government’s N0₂ plan, we will end the sale of new conventional petrol and diesel cars and vans by 2040. By then, we expect the majority of new cars and vans sold to be 100% zero emission and all new cars and vans to have significant zero emission capability. By 2050 we want almost every car and van to be zero emission. We expect this transition to be industry and consumer led, supported in the coming years by the measures set out in this strategy. We will review progress by 2025 and consider what interventions are required if not enough progress is being made.

In addition, by 2030, we want to see at least 50%, and as many as 70%, of new car sales being ultra low emission.

Government have a key role to play. The strategy contains a package of measures covering the three key issues: supply of vehicles to the market; consumer demand; and a fit for purpose infrastructure network.

The right infrastructure to support the transition

If we are to help people to make the right choice of vehicle for their journey, then one element will be to reduce range anxiety on electric vehicles. The strategy sets out a package of measures to ensure that electric vehicle drivers will be able to easily locate and access charging infrastructure that is affordable, efficient and reliable. We will continue to provide grants to encourage people to charge at home overnight, both on and off streets. This is how we envisage the majority of charging will take place.

Today we are announcing our intention that all new homes, where appropriate, should have a chargepoint available. We plan to consult as soon as possible on introducing a requirement for chargepoint infrastructure for new dwellings in England. We will look at how to achieve this in the most cost-effective way, mindful of the Government’s housing supply objectives. We also want all new street lighting columns to include charging points, where appropriately located, in residential areas with current on-street parking provision.

Workplace and public infrastructure will also be vital. The strategy contains a range of measures to support the development of these networks. These include an increase to the grant available for workplace charging, a joint pilot with Highways England to increase electrical capacity at a motorway service area, Highways England’s commitment to ensuring there is a chargepoint every 20 miles along the strategic road network by 2020 and the £400 million charging infrastructure investment fund announced at Budget 2017 to accelerate the roll out of chargepoints.

In this parliamentary Session we have taken the Automated and Electric Vehicles Bill through Parliament, now only awaiting Royal Assent, to improve the experience and provision of chargepoints. The Bill gives Government powers to ensure that chargepoints are available at motorway service areas and large fuel retailers, with Metro Mayors granted powers in relation to the latter. It also gives powers to ensure that chargepoints are easily accessed and used across the UK. This includes providing a uniform method of accessing public charge- points and refuelling points; making certain information publicly available in an open and transparent format; and setting reliability standards.

We will also ensure the electricity system now and in the future is ready for this transition. We and the energy sector are confident that existing market mechanisms will be able to meet additional electricity demand. Provisions in the aforementioned Bill to mandate smart charging, and our £30 million R and D investment in technologies allowing electricity to pass from vehicles into the grid at times of peak demand, will help alleviate these effects. We have launched an electric vehicles energy taskforce to bring together the relevant parts of industry and Government to ensure the transition is smooth.

The supply of vehicles and associated technologies to market

In our automotive sector deal, we made major new commitments to research and development in zero emission vehicle technology, and to developing competitive UK supply chains. This included the £246 million Faraday battery challenge, which is already supporting the development of battery technology in the UK. We will continue to support our established multi-million pound research and development programme for ultra low emission vehicles, which has been estimated to have a rate of return of £8 for every £1 invested.

The industry has an ambition to increase the level of UK content by value in domestically built vehicles to 50% by 2022. We want to work with industry to set a target at least as ambitious for the ultra low emission vehicle supply chain as we look to secure investment in UK battery manufacturing.

Consumer and business demand for ultra low emission vehicles

A recent survey indicated that around 38% of consumers considering a new car purchase would consider an electric car. However, only 2% of new car sales are currently ultra low emission.

More models are coming to market, giving consumers greater choice. Battery prices are coming down and we are committed to keeping in place our plug-in car and van grants until at least 2020. The tax system also favours ultra low and particularly zero emission vehicles over conventional ones. The strategy recognises that consumer incentives in some form will continue to play a role in driving uptake beyond 2020. And with industry we are launching the 2018-19 Go Ultra Low consumer campaign to promote the benefits of these vehicles and improve understanding of the choices available. Government will lead consumer uptake with 100% of central Government car fleets being ultra low emission by 2030.

Reducing emissions from conventional vehicles

However, it’s important to recognise that today over 99% of global car and van sales are petrol or diesel. Our strategy sets out how we will reduce emissions from the vehicles on our roads now and during the transition to zero emission vehicles. We will do this by increasing the supply and sustainability of low carbon fuels, accelerating the adoption of fuel efficient motoring and ensuring that our future approach to vehicle emissions regulation as we leave the European Union is at least as ambitious as current arrangements.

Cleaner diesel vehicles can play an important part in reducing CO₂ emissions from road transport during the transition to zero emission vehicles whilst meeting ever more stringent air quality standards. For diesel vehicles to play their part fully, their air quality impact must continue to be reduced. We welcome the continued innovation and investment by vehicle manufacturers to develop cleaner diesel vehicles that meet the more challenging real driving emissions (RDE) requirements, delivering critical improvements in NOx emissions on our roads.

In addition to working in Europe to set ambitious new EU CO₂ emissions standards for HGVs, we also recognise the need to reduce emissions from existing HGVs significantly. Working in partnership with industry leaders, the Government are also announcing a new industry-wide voluntary commitment for reducing HGV greenhouse gas emissions by 15% by 2025.

The strategy also sets out the results of our assessment of the environmental performance of the road vehicle fuels and technologies available to consumers. It is clear that zero emission vehicle options deliver the greatest environmental benefits regardless of vehicle type or use.

In the transition to zero emission vehicles, clear and consistent consumer information will be essential. We will set up a road transport emissions advice group to bring together Government, industry and consumer groups to work together to meet this challenge.

Conclusions

We cannot deliver this strategy alone. We are committed to working in partnership with industry, businesses, academia, environmental groups and others. That includes the devolved Administrations of Wales, Scotland and Northern Ireland, who are taking significant steps to accelerate the transition. This is a UK-wide strategy and our core package of vehicle and chargepoint grants applies across the UK. We are working with local areas. We are also playing a leading role internationally, bringing together the international community in September’s groundbreaking zero emission vehicle summit.

Other changes are happening to the automotive sector including automation and new business models, which are challenging our assumptions about how we travel. The future of mobility grand challenge has been established to harness the opportunities presented by these changes and consider their impact on our society. Later this year, we will be publishing our strategy for the future of urban mobility, and we will shortly be engaging on this.

By putting the UK at the forefront of the twenty-first century transport revolution, we can ensure our automotive sector—one of our greatest success stories—continues to thrive and create good jobs across the country. We can set a global standard for managing technological change to maximise economic and environmental benefits. We will work with industry to achieve this ambition, and share the benefits this opportunity presents. Helping us achieve our goals of cleaner air, a better environment, zero emission vehicles, a strong clean economy.

A copy of this document is being placed in the Libraries of both Houses.

The attachment can be viewed online at:

http://www.parliament.uk/business/publications/written-questions-answers-statements/written-statement/Commons/2018-07-09/HCWS839/.

[HCWS839]

Oral Answers to Questions

Chris Grayling Excerpts

Thursday 5th July 2018 Commons Chamber

[Dr Philippa Whitford (Central Ayrshire) (SNP)]

2. What steps he is taking to invest in transport infrastructure.

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

The Government are investing record sums to deliver the transport infrastructure that Britain needs. The Department for Transport’s annual capital spending will more than double over this decade, from £8 billion in 2009-10 to £17 billion in 2019-20. This money will deliver our ambitious five-year investment plan for the rail and strategic road networks, take forward delivery of High Speed 2, and help improve air quality.

[Dr Whitford]

First, I am going to use my position to wish all staff in the NHS a very happy 70th birthday.

The Secretary of State makes the classic mistake of thinking infrastructure is just steel and concrete, but the airspace routes above the UK were designed in the ’60s and simply cannot cope with the 2.3 million planes that use them every year. The NATS air traffic centre at Prestwick has invested in the technology to allow more direct planning and shorter routes and to save fuel and reduce noise. When will the Government actually reform the airspace?

[Chris Grayling]

I echo the hon. Lady’s comments about the NHS: I am looking forward this afternoon to travelling out with my local ambulance service to see the work of NHS staff, which, as she rightly says, is first rate.

As you will be aware, Mr Speaker, we have already launched the process of airspace reform in this country. We are currently depending on technology that is decades old; it is not now fit for purpose and we need to move to a world that is controlled by state-of-the-art digital technology. That will create the capacity we need, and a rolling programme is planned for the coming years of modernisation of our airspace across the UK.

[Justine Greening (Putney) (Con)]

A second entrance at Putney station would not only ease congestion, but would finally give connectivity with East Putney tube station. This project is supported financially by Wandsworth Council. Can the Secretary of State, following our recent meeting, look carefully at what support his Department can give this scheme so it can finally get the go-ahead?

[Chris Grayling]

I regard that scheme as a quick win that could make a real difference to passengers. I have asked my officials to consider it carefully, and I will carry on talking about it with my right hon. Friend. I am sympathetic towards the potential benefits of creating a better interchange between the underground and the mainline railway in her constituency.

[Emma Reynolds (Wolverhampton North East) (Lab)]

The Transport Secretary mentioned technology. Since the Government have devolved funding for speed cameras to local police forces, cameras have been switched off due to policing cuts. Will the Government reconsider that? There have been some severe accidents on the A449 Stafford Road in my constituency, including a fatality, and we need new speed cameras on that route.

[Chris Grayling]

I will absolutely take a look at that issue. We try to devolve responsibility for such things, but I will look carefully at that. We should always be mindful of stretches of road where there have been fatalities.

[Philip Davies (Shipley) (Con)]

I am extremely grateful to the Secretary of State for his interest in the Shipley eastern bypass and for coming to visit my constituency to see the route at first hand. Will he update me, the House and my constituents on the progress being made towards finally introducing a bypass?

[Chris Grayling]

My officials are currently considering what it would take to move the project forwards, and I have had discussions with the combined authority. The potential route sits alongside a growth area in West Yorkshire, so I am personally taking an interest in the scheme, which is now subject to careful assessment.

[Judith Cummins (Bradford South) (Lab)]

In recent weeks we have seen endless delays, cancellations across the north and a report from the Select Committee on Transport that confirmed a bias against northern regions in rail investment decisions, and we now hear reports that the trans-Pennine electrification will be scrapped altogether. Will the Secretary of State now respond properly to the One North campaign and commit to giving Transport for the North the full powers and funding it needs to deliver the necessary changes?

[Chris Grayling]

I am afraid that this is a total misnomer. First, the part of the country that will receive the highest Government spending per head on transport over the next five years is the north-west. Spending is higher per head of population across the north than it is in the south. Secondly, as I have already announced, we will start the £3 billion trans-Pennine upgrade next spring, which will substantially rebuild the railway line between Manchester, Leeds and York and deliver much better services to passengers. It is long overdue.

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

Network Rail plays a key role in delivering rail infrastructure investment projects both north and south of the border. Given that many of the Secretary of State’s colleagues think that Network Rail is too big, that he often gives it a kicking himself and that the Scottish Government have responsibility for the strategic delivery of rail north of the border, will he at last take steps to devolve Network Rail fully to the Scottish Government?

[Chris Grayling]

The hon. Gentleman keeps arguing for that, but it was not recommended by the commission that examined what powers the Scottish Government should have. My advice to the Scottish Government is to try to use the powers they have well rather than ask for more.

[Simon Hoare (North Dorset) (Con)]

I urge my right hon. Friend to look favourably upon applications for investment in smaller schemes on de-trunked roads, such as the A350 and the C13 in my constituency. They are vital arteries for growing the economy in Dorset and, indeed, the wider south-west.

[Chris Grayling]

De-trunked roads are an important priority for me. We are shaping our plans to introduce the major road network and to start making funds available for things such as bypasses on roads that were de-trunked 20 or 30 years ago and where there is a pressing need for improvement.

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

3. What assessment he has made of the potential effect of increased landing charges at Heathrow Airport on the financial viability of the proposed expansion of that airport.

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

I have been absolutely clear that expansion will be privately financed, and the Government have taken independent expert advice which demonstrated that expansion is capable of being financed without Government support. I have been clear that airport charges must be controlled, which is why I set out in 2016 that expansion should be delivered with airport charges remaining as close as possible to current levels. It is the Civil Aviation Authority’s job to enforce that, and I am certain that it will do so.

[Ruth Cadbury]

The Airports Commission has indicated that landing charges would have to rise by around 70% per passenger, and British Airways has warned that any such increase would make many routes from Heathrow no longer commercially viable. Would that not have significant consequences for regional connections and/or increase ticket prices for passengers?

[Chris Grayling]

We have of course been working to ensure that the cost of the original scheme was brought down in order to avoid a 70% rise in landing charges, but I have been clear that the requirement to set aside around 15% of slots for regional connections is non-negotiable and fixed. It will not be possible to change those slots to long-haul destinations because they are an essential part of the reform.

[Greg Hands (Chelsea and Fulham) (Con)]

When will the flightpaths be published?

[Chris Grayling]

I expect that we will complete plans for airspace modernisation over the coming months. There will be a rolling programme in the early 2020s, and I expect details of that plan to be made clear, probably in 2019.

[Graham P. Jones (Hyndburn) (Lab)]

4. What assessment he has made of the potential merits of extending the M65 from Colne to Keighley.

--- Later in debate ---

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

5. What assessment he has made of the potential effect on the level of transport-related activity at ports of the UK leaving the EU.

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

UK ports are adaptive and market-oriented. They are ready to facilitate growth in trade when we leave the EU. Over the medium and longer-term, patterns of maritime and inland traffic may be affected by the trade agreements we reach with the EU and with countries elsewhere. It is too early to predict in detail what those patterns will be, but ports nationwide are prepared for all likely eventualities.

[Steve Double]

The stunningly picturesque river port of Fowey is a magnet for visitors by both land and sea, but it is also a busy commercial port that ships the world’s finest china clay around the world. How will the Department’s recently published port connectivity study assist small river ports like Fowey?

[Chris Grayling]

As we plan infrastructure improvements over the coming years, I want us to look at how we best connect, in the most effective way possible, the ports upon which our country depends, both large and small. Of course, my hon. Friend will be aware that we are already demonstrating our commitment to improving the road network in his area, with the planned completion of the new link road up to the A30.

[Fiona Onasanya (Peterborough) (Lab)]

The Government have moved from saying they want trade with the EU post Brexit to be tariff-free to saying that they want it to be as tariff-free as possible. In which sectors of the economy and industry does the Secretary of State think it will be acceptable for there to be tariffs?

[Mr Speaker]

In relation to ports.

[Chris Grayling]

As the hon. Lady will be aware, this is not really a transport matter. Our ports will be ready, and our plans for how we manage our borders will be ready for all eventualities, but I want, I believe and I expect that we will have a sensible agreement with the European Union that avoids the charging of tariffs. That is certainly what the EU wants, and it is what we want.

[Ronnie Cowan (Inverclyde) (SNP)]

My Inverclyde constituency has a thriving port at Greenock, with cruise ships and container ships docking on a daily basis. Can the Secretary of State assure me that the systems, including IT systems, that will be required post Brexit are well on their way to completion so that ports such as Greenock will not be adversely affected by the UK leaving the European Union?

[Chris Grayling]

The answer is yes but, of course, most of our ports are well used to dealing with traffic from both inside and outside the European Union. Those handling freight move it through extremely quickly and effectively, and they have great expertise in doing so. I am very optimistic that our ports will do a great job in the post-Brexit world.

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

In his opening remarks the Secretary of State said it is too early to predict the effects on transport at ports. That is ridiculous, considering that we will leave the EU in March 2019. Half of his Cabinet is arguing for a no-deal Brexit, so it is coming at us really fast. We already know it is predicted that an extra two minutes of checks at Dover would result in 30-mile tailbacks, so what is he doing to put in place IT systems and border infrastructure systems that allow joined-up, continued free movement?

[Chris Grayling]

The Government and Her Majesty’s Revenue and Customs are doing extensive work for all eventualities. As I have previously said in the House, we do not intend to impose any form of hard border in Dover. It would be logistically impossible to do so, and therefore any flow of customs through Dover in the post-Brexit world will have to be managed in an online, electronic way. It is not possible to create fixed systems at Dover.

[Gillian Keegan (Chichester) (Con)]

6. What assessment he has made of the effect of operationally efficient transport infrastructure on levels of productivity.

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

Transport infrastructure has an important role to play in helping to increase our productivity. That is why we have set out to more than double our capital investment in transport over the decade to 2020, and why it is a central part of our industrial strategy.

[Gillian Keegan]

Many of my constituents in Chichester and the surrounding area lose hours and hours each week sitting in traffic on the A27. That has a knock-on negative impact on productivity, the local economy and the environment. Will my right hon. Friend ensure that road investment decisions for areas such as Chichester, which are already over capacity, are prioritised in the road infrastructure investments for 2020 to 2025?

[Chris Grayling]

I pay tribute to my hon. Friend, who has been doing a fantastic job of trying to get the A27 project back on track. I am absolutely aware of its importance to her constituency and to the south coast. It is important that the community in Chichester reaches a consensus about the right option, and of course I then want to see the project go ahead.

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

The Secretary of State knows the effect on productivity in places such as Yorkshire and my constituency. On the 70th anniversary of the NHS, when we wish all those workers a very good day, is it not a fact that many of them are struggling to get to work because of his policies and his lack of sense of direction on transport infrastructure?

[Chris Grayling]

Actually it is this Government who are investing in rail and are providing new trains right across the north; who have just opened the last stretch of motorway-grade road between London and Newcastle; who are investing money in smart motorways; and who are putting money into Leeds, to ensure better connectivity there, and into towns and cities around the north. I wish Opposition Members would start to talk up the north and the improvements that are happening, rather than talking it down and pretending nothing is happening.

[Mark Menzies (Fylde) (Con)]

I have a wonderful piece of transport infrastructure in my constituency called Blackpool airport. Will the Secretary of State tell me what steps will be taken to ensure that with a third runway at Heathrow, we will see improved connectivity to my part of the north-west?

[Chris Grayling]

This is why I am committed to saying that the 15% of slots set aside for regional connections are set in stone. We are not going to see those suddenly disappear from 15% to 10% to 5%, with routes diverted elsewhere. The expansion of Heathrow is a really important part of delivering improvements right around the United Kingdom, and I am committed to making sure that happens.[Official Report, 12 July 2018, Vol. 644, c. 8MC.]

[Jessica Morden (Newport East) (Lab)]

This summer, my constituents who commute by rail have had to put with up with delays, cancellations and ineffective bus services as a result of work on the great western main line, and we now learn that equipment is rusting in the Severn tunnel. Although the infrastructure investment is welcome, will the Minister ensure that this is not an excuse for train operating companies to provide a reduced quality service? Will he also ensure that there is no more disruption than there needs to be?

[Chris Grayling]

This is one of the great conundrums. We are spending money around the country and it is impossible to deliver investment without some disruption. I absolutely would not accept a train company using that as an opportunity to do things that are not right for passengers, but we have to accept that if we are going to modernise different parts of our road and rail infrastructure, some disruptive consequences are inevitable, however much we might wish that was not the case.

[Nic Dakin (Scunthorpe) (Lab)]

8. What representations he has received on the introduction of provisions relating to E10 fuel since the consultation on the alternative fuels infrastructure directive.

--- Later in debate ---

[Sir Greg Knight (East Yorkshire) (Con)]

10. What plans he has to reduce road congestion.

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

My right hon. Friend will be aware that the Government are in the middle of a £23 billion programme of investment to upgrade our strategic road network. We are also investing money in pinch points, with an additional £220 million going to tackle them last year. Throughout the country, that money is being used for smaller local projects such as junction improvements that can really make a difference to traffic flows.

[Sir Greg Knight]

Is my right hon. Friend aware that some councils cause avoidable congestion themselves by the use of unnecessary and poorly-phased traffic lights? Will he encourage local authorities to audit their traffic-light usage to see whether some can be switched off? Will he also encourage the greater use of traffic-sensitive traffic lights?

[Chris Grayling]

I agree with both those points. Traffic lights play an important part in the management of traffic flows, but if they are synchronised in the wrong way or used in the wrong way, they can make things worse, rather than better. I absolutely join my right hon. Friend in sending to councils the message that they should keep traffic-light usage under constant review.

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

The chaos on Northern rail is apparent, but even had there not been the timetabling problems, the Northern rail and trans-Pennine franchises were let on a no-growth basis. Does the Secretary of State now realise that it was a mistake to let rail franchises on a no-growth basis and that it led to road congestion?

--- Later in debate ---

[Graham Stringer]

Precisely.

[Chris Grayling]

It is simply not true that the Northern franchise was let on a no-growth basis, although it was under the Labour party when it was in power. One reason why we have had the timetable problems, apart from the delay to the electrification—the investment that we are putting into the railway line from Manchester to Blackpool—is that we were in May introducing hundreds of new services, additional services and longer trains throughout the Northern rail region. That is hardly a zero-growth franchise.

[Rebecca Pow (Taunton Deane) (Con)]

One thing that would reduce road congestion is, of course, getting people out of their cars and on to their bikes. We very much welcome the upgrade of the A358 in Taunton, but does the Secretary of State agree that whatever route is chosen by Highways England, the provision of adequate cycling infrastructure should very much be part of upgrades?

[Chris Grayling]

I always hope that when a new road is put in place, provision will be made for other users—cyclists and pedestrians—alongside that road, particularly in respect of a major road like the A358. That new road will of course mean that there is substantial additional capacity on the old road, which will become much less congested, but I am sure that Highways England will be looking carefully into how it can make provision for all road users.

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

The A38 from Exeter to Plymouth closes too often owing to accidents and congestion. Will the Secretary of State look favourably on funding bids from Plymouth City Council and Tory-run Devon County Council to upgrade this road, address accident blackspots and start the much needed process of extending the M5 from Exeter to Plymouth?

[Chris Grayling]

I am obviously aware of the pressures on the A38 and, indeed, of the pressures on roads north and west from Plymouth. I pay tribute to my hon. Friend the Member for South East Cornwall (Mrs Murray) who, last week, made a very strong argument to me when I visited Cornwall for improvements to the west of Plymouth. That is something that we are looking at very carefully.

[Paula Sherriff (Dewsbury) (Lab)]

11. What steps he is taking to ensure the provision of compensation to passengers affected by recent rail disruption.

--- Later in debate ---

[Fiona Bruce (Congleton) (Con)]

12. What progress has been made on improving rail services in Congleton constituency.

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

As part of the improvements to Northern Rail services, there are more frequent, hourly Sunday stopping services from Stoke to Manchester via Macclesfield. Congleton station will benefit from full waiting room refurbishment, new seating, customer information systems, new and improved signage and new ticket vending machines.

[Fiona Bruce]

I thank the Secretary of State for that reply—and all that in the north. It is encouraging that, after years of local campaigning by my constituents, a strategic outline business case has been developed for enhancing the mid-Cheshire rail line, including reopening Middlewich railway station in that growing town. What assurance can the Secretary of State give me that funding is available for this vital development work?

[Chris Grayling]

There are two routes in the north that I feel particularly keen to look at seriously reopening. One is the line from Skipton to Colne. The other is the line that passes through Middlewich in my hon. Friend’s constituency that, in my view, should be a commuter railway into Manchester. Transport for the North has been working on the options, and I am committed to ensuring that we take that work forward.

[Jo Stevens (Cardiff Central) (Lab)]

13. What recent assessment he has made of trends in passenger rail usage.

--- Later in debate ---

[Layla Moran (Oxford West and Abingdon) (LD)]

18. When he plans to make a decision on the preferred route for the Oxford to Cambridge expressway.

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

We expect to make a decision on the preferred corridor for the Oxford to Cambridge expressway this summer. There then has to be further work on the detailed route within that corridor.

[Layla Moran]

I thank the Secretary of State for his answer. Given that any of these routes will have an enormous impact on both communities and the environment, does he not share my concern that the public have not been consulted at all?

[Chris Grayling]

No roads can be built without public consultation. We are working out in broad measure which route a corridor might follow, so that we can then do detailed consultation with the public.

[Rosie Duffield (Canterbury) (Lab)]

19. What recent assessment he has made of trends in the number of bus routes in England and Wales.

--- Later in debate ---

[Sandy Martin (Ipswich) (Lab)]

T1. If he will make a statement on his departmental responsibilities.

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

May I take this opportunity to thank Members on both sides of the House for the support they gave last week to the vote on the expansion of Heathrow airport? I think that sent a powerful message about the future of our country. The support came from the Government side of the House, the Opposition, the parties in Northern Ireland and Scottish Conservatives, and it was a resounding vote for the country’s future.

[Sandy Martin]

Although Greater Anglia and the Government both say that they want 15 minutes to be the trigger period for passenger compensation, travellers from Ipswich are still unable to claim any compensation until their trains are more than 30 minutes late. Given the number of failed trains, failing overhead wires, failing rails, failing points and failing signals, when will the Secretary of State rectify this anomaly and ensure that my constituents can claim the compensation that is readily available to passengers in the rest of the country?

[Chris Grayling]

The move across the country to repayment after a 15-minute delay is being phased in with new franchises that will start over the coming years. I say to passengers in East Anglia that every single train there is being replaced with a brand new one. That will improve performance, stop the blight of broken down old trains, and mean a much better travelling experience.

[Tom Pursglove (Corby) (Con)]

T4. As I have said to Ministers previously, urgent repair works are required on the North bridge at Oundle to avoid a weight limit being introduced that would badly affect those who use the bus services, businesses, and the community more generally. What Government support is available to get such work done urgently, particularly in exceptional financial circumstances such as those currently faced by Northamptonshire?

--- Later in debate ---

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

T3. In a deregulated bus system, local authorities have no control over routes and fares, and the amount of money for tendered services is being cut by 45%. How can the Prime Minister justify her statement that local authorities should be improving bus services? Will the Secretary of State give the Prime Minister a lesson in how the bus service system works?

[Chris Grayling]

What I will do is give a lesson to Labour Mayors about the reforms that we put in place in the last Parliament, which gave them franchising powers. The hon. Gentleman might like to ask the Mayor of Greater Manchester why his promise on bus franchising is years away from happening—the last estimate I heard was that it might just about be completed by 2023, which is way after his first term of office, and way after he made that commitment.

[Theresa Villiers (Chipping Barnet) (Con)]

T9. Will the Secretary of State confirm that the Government have no intention of allowing direct flights between the United Kingdom and the northern part of Cyprus?

[Chris Grayling]

Let me be clear: all Members of the House would like to see a long-term solution to the issues on the island of Cyprus. This country will continue to work with our friends in Cyprus to try to achieve that goal, but our policies on flights have not changed.

[Gavin Newlands (Paisley and Renfrewshire North) (SNP)]

T5. The east coast franchise is now run with the part publicly-owned London North Eastern Railway, and it is a major transport operation in Scotland. Despite that, the UK Government have not allowed any Scottish Government representation on the board. Will the Secretary of State rethink that, and commit to ensuring that the Scottish Government are represented on that vital piece of infrastructure?

--- Later in debate ---

[David Linden (Glasgow East) (SNP)]

T6. Today’s Financial Times carries a warning from the British Retail Consortium about the fear of food rotting at ports as a result of a no-deal Brexit. What is the Secretary of State doing about that, and how will he ensure that our ports are not left in chaos?

[Chris Grayling]

As I keep saying clearly, we do not intend to put in place measures that would create long incoming queues at our ports. Our ports successfully support inward trade from around the world, and in the post-Brexit world we have no intention of changing that.

[Mr Speaker]

Andrew Jones—I call Mr Jones.

--- Later in debate ---

[Conor McGinn (St Helens North) (Lab)]

T7. Can the Secretary of State explain how the decision to award the Wales & Borders franchise is made solely by the Welsh Government? This is a main commuter route for my constituents into Manchester and Warrington, but we have no say over it. Is it not ludicrous that decisions about English rail passenger services are being made exclusively in Wales?

[Chris Grayling]

We have taken care—this is a genuine issue—to ensure that the Welsh Government, while they control the letting of the franchise, do not have the power to degrade services within England. That is very important. The Department holds clear responsibilities for making sure the Welsh do not take decisions that adversely affect the English.

[Justine Greening (Putney) (Con)]

Heathrow flights are capped at 480,000 flights a year. That was set as a condition of the 2001 terminal 5 planning consent. Will the Secretary of State confirm that there are no plans to override the existing cap for existing runways?

[Chris Grayling]

I have had no requests to do so.

[Bambos Charalambous (Enfield, Southgate) (Lab)]

T8. Many of my constituents have had to endure a consistently poor and wholly unacceptable train service from GTR-Great Northern since the new timetable was introduced on 20 May. Does the Minister agree that the time has come to end the franchise for GTR-Great Northern and allow the Mayor of London to take over the running of the service, so that my constituents can get into London to work, study and get on with their lives without travelling being such an ordeal?

--- Later in debate ---

[Thelma Walker (Colne Valley) (Lab)]

Delays, non-accessible platforms, cancelled trains, failed investment—would the Secretary of State like me to add broken promises of electrification to the list of issues with the trans-Pennine route for my constituents?

[Chris Grayling]

We have already modernised the line from Liverpool to Manchester and we are about to start a £3 billion modernisation of the railway line from Manchester to Leeds to York, so I make no apology to the people of the north for the fact that we are spending £3 billion on upgrading their railway line when the Labour party, when it was in office, did absolutely nothing.

[Stephen Metcalfe (South Basildon and East Thurrock) (Con)]

As we reach the halfway point through the Year of Engineering, will my right hon. Friend join me in thanking all those who have joined the campaign so far and encourage those who have yet to get on board to join up and make 2018 the success I know it can be?

--- Later in debate ---

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

The Secretary of State knows very well that millions of our people are being poisoned by the filthy emissions from buses, trucks and cars. When is he going to do something about it?

[Chris Grayling]

Before I respond to that question, I just say to the hon. Member for Bolsover (Mr Skinner) that I had been under the impression that the meeting was already organised. If that is not the case, I will make sure that it is.

On clean transport, this is a central part of the Government’s strategy. It is why we are spending money on supporting low-emission bus vehicles and on encouraging people to buy low-emission vehicles. When we publish our Road to Zero strategy shortly, we will be setting out more of our plans to create a greener vehicle fleet on our roads.

[Mr Speaker]

Order. Just before I call the right hon. Member for Birkenhead (Frank Field) to put his urgent question, I should remind the House—I hope it is a question of reminding the House of something of which it is already conscious—that we have very considerable pressure on the parliamentary timetable today. There is of course the business question, and there are two ministerial statements, but I have also to have regard to the level of interest in the debate on proxy voting. This urgent question will therefore not run for longer than 20 minutes. The Front Benchers must stick to time; otherwise, I am afraid they will have to be sat down. After the expiry of that 20 minutes, that’s it—we will move on to the next business.

HS2 Phase 2b Eastern Leg Rolling Stock Depot Location

Chris Grayling Excerpts

Wednesday 4th July 2018 Written Statements

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

I would like to update the house on plans for the HS2 phase 2b eastern leg rolling stock depot. I am today confirming the depot should be located at a site in the Aire valley, adjacent to the M1, to the east of Leeds. This decision is laid out in today’s publication of the HS2 phase 2b eastern leg rolling stock depot consultation response.

It was originally proposed that the depot be sited near Crofton, east of Wakefield. Due to operational and community concerns after the M18/ eastern route decision was announced, I asked HS2 Ltd to review alternative options for the depot site. The east of Leeds site was identified and a consultation seeking views on this proposed location was launched on 17 July 2017 and ran until 12 October 2017. The consultation revealed broad support for the new location.

This decision has been made with local development plans on the wider site in mind. HS2 Ltd will continue to work with stakeholders to support local regeneration proposals on the wider site.

[HCWS825]

Haulage Permits and Trailer Registration Bill [Lords]

Chris Grayling Excerpts

Tuesday 26th June 2018 Commons Chamber

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

I beg to move, That the Bill be now read the Third time.

I want to say a few words at the concluding stage of the consideration of this Bill. First, I thank all those involved on both sides of the House—the Under-Secretary of State for Transport, my hon. Friend the Member for Hereford and South Herefordshire (Jesse Norman), the Opposition team who have taken part in the debates, the two Committee Chairs and, indeed, all hon. Members who served on the Public Bill Committee.

This is an important Bill. As the Brexit negotiations continue, it is critical that we prepare carefully for our future relationship with the European Union, take all the steps we need to take for all eventualities in negotiations that lie ahead, and make sure we have all the tools that are needed for that future relationship, so that haulage, which is a really important part of our economy, has the tools it needs to be able to carry on crossing borders and delivering the trade that is so essential to this country and to the European Union as a whole. After all, this industry directly employs 300,000 people.

The first part of this Bill will allow us to introduce a road haulage permit scheme covering existing agreements outside the European Union, while also making sure that we have the tools available for any permit-based deal with the European Union, if that is required. As you know, Madam Deputy Speaker, the Bill puts in place a legal framework for the Government to establish a system for issuing permits, without placing undue regulation or financial requirements on the industry.

The UK already has several of these in place with non-EU countries. It is important that we have all the tools we may need at the conclusion of the negotiating process and I am very grateful to both Houses of Parliament for expediting this measure. I believe that we have made another step forward in our preparedness process by passing this legislation.

The other part of the legislation gives the Government powers to establish a trailer registration scheme to meet the standards in the 1968 Vienna convention on road traffic. That ensures that UK operators can register trailers before entering countries that require such registration—I am referring to HGV trailers, which are an important part of the haulage sector, and not to smaller camping trailers that holidaymakers use. Commercial trailers over 750 kg and all trailers over 3.5 tonnes need to be registered. As with the first part of the Bill, we intend only to recover the costs of running the scheme and not to make a profit.

On the trailer safety measures added in the other place, the Lords made its recommendations and the Government acted on them. We will publish a report on trailer safety within one year of the Bill coming into force.

This is a good Bill and a valuable contribution to the preparations for Brexit. It also puts in place sensible safety measures and a sensible framework for the future of our haulage sector when it comes to the permits and registration required for it to continue to operate in the way we want. I again thank all those involved in the Bill on both sides of the House.

Airports: National Policy Statement

Chris Grayling Excerpts

Tuesday 26th June 2018 Written Statements

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

On Monday the House of Commons debated the proposed airports national policy statement which I laid before Parliament on 5 June. Following the approval of the statement by the House, I am pleased to inform the House that I am today designating it as a national policy statement under the provisions of section 5(1) of the Planning Act 2008, and have arranged for publication as required by section 5(9)(a) of that Act.

The designation of the airports national policy statement marks a significant step forward. It provides the primary basis for decision making on development consent applications for a north-west runway at Heathrow airport, clarifying what is required to enable the development of much needed additional airport capacity that is essential for trade and economic growth, while setting clear requirements to mitigate the impacts on local communities and the environment.

The next step is for applicants to develop their plans, and then carry out further public consultation as required under the Act. Any application for development consent will of course be considered carefully and with an open mind based on the evidence provided, including through a public examination by the independent planning inspectorate, before a final decision is made.

[HCWS796]

National Policy Statement: Airports

Chris Grayling Excerpts

Monday 25th June 2018 Commons Chamber

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

I beg to move,

That this House approves the National Policy Statement on New runway capacity and infrastructure at airports in the South East of England, which was laid before this House on 5 June 2018.

This is a very important moment in the history of the House and the history of the country. If the House endorses the proposed national airports policy statement today, it will move on from decades of debate and set what is, to my mind, a clear path to our future as a global nation in the post-Brexit world.

Let me explain to Members what we are doing today. The proposed policy statement does not grant final planning consent; what it does is set the policy against which a promoter of an expanded Heathrow airport can deliver more detailed design and participate in the detailed planning process that can lead to final consent.

I thank the many Members on both sides of the House who have gone on the record to support expansion at Heathrow, and who have made considerable efforts to persuade others of its importance to all nations and regions of the United Kingdom. I know that this debate is divisive for many, but there is also strong support across the House for what I believe is a very important step for our nation, and I am grateful to all those who have been involved in supporting the way forward that I believe is right for our country.

[Michael Fabricant (Lichfield) (Con)]

My right hon. Friend has mentioned divisiveness. I personally think that this development is well overdue, and, although I know that it is not on the cards, I would support a fourth and a fifth runway, at Heathrow and at Gatwick. Does my right hon. Friend accept, however, that—just as with HS2—when constituency matters come into the equation, it is understandable that some people feel that they are unable to vote for this Government motion, and might find themselves called away?

[Chris Grayling]

I would never criticise any Member for representing the views of his or her constituents. After all, whatever position we may hold in the House, in government or in opposition, we are all ultimately constituency MPs, and it is absolutely right for us to champion the issues that affect our constituents.

I also want to thank people outside the House. It is unusual for me to find myself campaigning on the same side of the argument as Len McCluskey of Unite the Union, but the trade union movement has been a strong supporter of this, as have business groups in all corners of the United Kingdom.

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

I will join the Secretary of State in the Lobby tonight because I think that the third runway is a piece of infrastructure of national importance that will benefit the whole nation. However, what it must not do is increase the disparity of wealth and income between the regions of this country and London and the south-east. Can the Secretary of State tell us what extra funds he will invest in the regional airports to ensure that they can make their contribution? It cannot be right, at a time when this investment will lead to a great deal of public expenditure in the south-east, that Manchester airport is expected to pay for the station for HS2.

[Chris Grayling]

I absolutely take on board the hon. Gentleman’s point. Of course Manchester airport is a great success story, and a great international success story. I have been working with the airport management to help it expand its expertise internationally and will continue to do that.

What I would say to reassure the hon. Gentleman is that, as he will be aware, the Infrastructure and Projects Authority has indicated that the region of the country that will secure the highest proportion of Government spending on transport in the next few years is the north-west. That is right and proper—a sign of our continuing commitment to deliver improvements in the north of this country that are long, long overdue.

[Rehman Chishti (Gillingham and Rainham) (Con)]

The Secretary of State is absolutely right: Members of Parliament have a duty to stand up for their constituents, and I will do just that. Can he confirm that the expansion of Heathrow puts an end to the daft estuary airport idea, and that the long-term provision of air capacity needs can be met at Gatwick?

[Chris Grayling]

The Airports Commission looked very carefully at the estuary airport concept, concluded that it was not viable and made this recommendation. I see no way how, off the back of an expanded Heathrow, an estuary airport would become a viable option, so I reassure my hon. Friend on that point.

[Ian Paisley (North Antrim) (DUP)]

In terms of the benefits for the regions, does the Secretary of State accept that the expansion opens up the opportunity for over 500 jobs for Northern Ireland, £5 billion of economic growth, a £10 million airline route development programme, and a logistics hub that, if based in Northern Ireland, will increase productivity and jobs and make Northern Ireland a key part of this development programme? Does he support that hub being in Northern Ireland?

[Chris Grayling]

This project, including the development hub concept that Heathrow has been promoting, will make a contribution to the economy of all parts of the United Kingdom. I know the hon. Gentleman has a keen eye on making sure that the hub goes to Ballymena; I cannot make any promises to the airport on the plan, but I know the hon. Gentleman will carry on making that argument very robustly.

[Mark Pritchard (The Wrekin) (Con)]

Whether it is pre or post Brexit, does the Secretary of State accept that, to be an open, liberal, market economy, we need an airport that can compete against the likes of Paris, Schiphol, Istanbul, Dubai and Doha? On the issue of the regions, does he accept that Birmingham airport also has a part to play over the skies of the UK?

[Chris Grayling]

rose—

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. Before the Secretary of State answers the two questions in that intervention, may I say that interventions should be short and should make one point? Otherwise, it is not fair to Members at the end of the incredibly long list of speakers I have here. Those making interventions now at great length are taking time away from the Members who will be trying to speak, having sat here until after 9 o’clock tonight.

Also, there are lots of conversations going on around the Chamber; perhaps Members are negotiating which way they are going to vote this evening. If they are, will they do so either more quietly or somewhere else? The rest of the House wishes to hear the Secretary of State.

[Chris Grayling]

Thank you, Madam Deputy Speaker. I will respond to the last intervention, then take a couple more interventions and then make some progress: as you rightly say, lots of Members want to contribute.

I say in response to my hon. Friend the Member for The Wrekin (Mark Pritchard) that this is absolutely crucial to the UK as a whole. He is right that Birmingham airport is probably the most directly affected, although of course HS2’s arriving at Birmingham airport will create fantastic connections to that great airport from around the country.

Our forecasts show all regional airports growing, which is an indication that we need to provide the capacity at Heathrow. We can do so without damaging the prosperity of the regions. Indeed, it will enhance the prosperity of the regions, as their airports grow and their connections improve.

[Mr Andrew Mitchell (Sutton Coldfield) (Con)]

My right hon. Friend should be commended for finally, at long last, bringing forward this vital measure of national infrastructure. Will he confirm that although, according to Sir Howard Davies, London and the south-east will benefit to the tune of £52 billion economically, the north, Birmingham and the rest of the country will benefit to the tune of nearly £80 billion?

[Chris Grayling]

My right hon. Friend is right, and it is interesting how much support there has been from around the whole United Kingdom: not a single regional airport has opposed the expansion of Heathrow, and I have talked to business groups up and down this country, all of whom support the expansion of Heathrow because they believe it will make a huge difference.

[John Redwood (Wokingham) (Con)]

Although airport expansion is crucial to our economic success, does my right hon. Friend accept that from 2014 unfortunate changes to the pattern of aviation movements from Heathrow, made without consultation, have created a much worse noise situation over my constituency and adjacent constituencies? Will he ensure that a proper noise reduction programme is in place from now on? We do not like the existing level of noise, let alone an expanded one.

[Chris Grayling]

I absolutely understand my right hon. Friend’s concerns and will make two points to him. First, we intend to move ahead quickly with setting up the independent noise monitoring body, which is needed to make sure the rules are kept to. In addition, I believe the modernisation of air space, and proper enforcement of the way air space operates, will mean we can use it in a smarter way, give communities more relief and avoid the kind of change that affected my right hon. Friend’s constituency. I give him the assurance that I will work with him, and make sure that NATS and others work with him, to ensure that the issue he is concerned about is addressed in the future.

[Several hon. Members rose—]

[Chris Grayling]

I will make a little more progress, and then take some further interventions.

The need for an additional runway in the south-east is greater than ever before because—this is the reason why we have to do this—all five of London’s main airports will be full by the mid-2030s, and Heathrow is full today. We are seeing business leave the UK and go to airports like Frankfurt, Amsterdam and Paris, which have made additional capacity provision. If we sit here with our “Plane Finder” app on, we can watch planes flying overhead from the United Kingdom so that UK business passengers can go to Schiphol and then fly around the world. We are losing those connections to other countries, and we are losing the investment that goes around those connections. That is an important part of why this expansion is necessary.

I also need to be clear that this is not at the expense of growth at our other airports. It is simply not the case that other airports will lose business as a result of the expansion. All of our forecasts show every airport around the UK continuing to grow and expand. The UK’s Regional and Business Airports Group, which represents 40 airports, wrote to hon. Members saying:

“Heathrow expansion would mean more UK airports have vital access to a truly unrivalled network of routes...to destinations around the world.”

With expansion at Heathrow, non-London airports will continue to experience that strong growth—80% by 2050—and, importantly, they will have the capacity to accommodate that growth.

[Jim Shannon (Strangford) (DUP)]

I thank the Secretary of State for his statement. This is clearly more than just about the constituencies around Heathrow and London; it is about connectivity for all the regions, as he has outlined. It has been said that Belfast City, Belfast International and Londonderry airports will gain by some 15% in new domestic routes. Can the Minister confirm that the increase will be of 15%?

[Chris Grayling]

My expectation is that we will see substantial growth. I would not put an exact percentage on it, but I have said that I will use the public service obligation mechanisms to set aside 15% of the additional capacity at Heathrow for links around the United Kingdom. We will use the PSO mechanisms to ensure that airports such as those in Northern Ireland, which are already thoroughly successful, benefit from this connection, and we will do the same in Scotland, the south-west and at other airports in the north and potentially north Wales, where this can make a difference.

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

How many airports per region will be protected by that “up to 15%” promise in the document? I have been led to understand that the Department will only protect one per region.

--- Later in debate ---

[Chris Grayling]

That is simply not the case. Heathrow itself has set out a long list of airports that it expects to benefit and where it will make provision for those links to happen. I believe that setting aside that 15% will result in links being provided to airports all around the United Kingdom. We will use the PSO mechanism to make sure that the expansion delivers improved links to all around the United Kingdom.

[Sir Geoffrey Clifton-Brown (The Cotswolds) (Con)]

This proposal for a third runway at Heathrow was first published in 2002, whereas Hong Kong published theirs in 2011 and it will be built within five years. Does my right hon. Friend agree that if we are to remain internationally competitive, we should get on and build the runway?

[Chris Grayling]

Absolutely; I completely agree with my hon. Friend. We have delayed on this for much too long, and it is time we got on with the job.

[Caroline Lucas (Brighton, Pavilion) (Green)]

Aviation already has a uniquely generous allocation for climate emissions, which basically means that passenger numbers can grow by up to 60% by 2050, but according to the Secretary of State’s own Department, passenger numbers are expected to grow by 93% by 2050 even before expansion at Heathrow, so when is he going to start looking at demand-side regulation—perhaps including a frequent flyer levy—rather than simply carrying on growing more and more supply? Or is he content to follow the advice of the hon. Member for Lichfield (Michael Fabricant) and basically cover the whole country in concrete?

[Madam Deputy Speaker (Dame Eleanor Laing)]

The hon. Lady has made her point, and the hon. Lady—I mean the hon. Gentleman—[Laughter.] I will start again. The hon. Lady has made her point. The hon. Gentleman has made his point, which is not a point of order for me, but the matter is dealt with, I think.

[Chris Grayling]

Let me touch on the issue of climate change, which I was planning to come to in a moment. We are confident that we can deliver the expansion at Heathrow within our obligations under the Climate Change Act 2008. Any increase in emissions that would have a material impact on our ability to meet our obligations would lead to a refusal. I can tell the hon. Lady that the independent Committee on Climate Change wrote to me two weeks ago setting out its views on the NPS. It works to a target that aviation emissions in 2050 should be no higher than they were in 2005. With more efficient aircraft and engines, improved ground operations and the use of biofuels, the CCC’s analysis estimates that the UK can accommodate that increase in air travel by 2050 while meeting our climate change obligations. We believe that an expanded Heathrow airport and a new runway are consistent with this target.

[Several hon. Members rose—]

--- Later in debate ---

[Chris Grayling]

I want to make some more progress, then I will give way a couple more times.

Let me touch on the benefits to the wider economy and the connections to Heathrow airport on the ground. Surface access is one of the questions that is regularly raised. People ask why this location is best and what the benefits will be for the United Kingdom. Heathrow is already Britain’s best-connected airport by road and rail, and this will be further strengthened by improvements to the Piccadilly line, by new links to Heathrow through Crossrail and connections to HS2 via an interchange at Old Oak Common, and beyond that by the development of western and southern rail access to Heathrow.

A point that people often miss about Heathrow airport is that it is also crucial to the economy because it is our biggest freight port by value. It carries more freight by value than all other UK airports combined, nearly all of it transported in the belly-hold of passenger aircraft. This expansion will bring a real trade boost to the United Kingdom, providing a greater choice and frequency of vital long-haul flights to international markets for passengers and goods than could be achieved by any of the other options that were available to us. These benefits will be felt all around the United Kingdom.

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

My right hon. Friend knows about the case of my constituent, John Coles, a British Airways engineer who sadly passed away in an accident at Heathrow. I support a third runway, but the Secretary of State has not yet mentioned health and safety. Will he ensure that the health and safety of the 75,000 employees and 78 million passengers will be front and centre in his mind?

[Chris Grayling]

Absolutely. What happened to my hon. Friend’s constituent was tragic. I know that it is an accident that all at Heathrow bitterly regret, and they have worked to learn lessons from it. Of course, at a major facility such as Heathrow—and, indeed, any other airport—safety has to be our priority. Aviation is one of the safest—if not the safest—modes of transport around, but that should not in any way allow for slippage on health and safety.

[Mary Robinson (Cheadle) (Con)]

Manchester airport employs thousands of people in my constituency, and it has 28 million passengers a year, with a capacity of 55 million. Obviously, it is doing a lot more than hub; it has global connections as well. Given the investment in northern powerhouse rail and in the north-western and northern economy, can my right hon. Friend assure me and my constituents that we will have even more benefits from this new proposal?

[Chris Grayling]

All the expectations we have are that Manchester airport will continue to grow strongly. There has been a £1 billion investment, and I was there recently to see the start of the development of the new terminal building. Manchester airport is a fantastic success story. It is a real asset to the economy and to the country as a whole. Manchester will also gain through the additional connectivity to new and emerging markets that we get through a hub airport. This is a good news story for Manchester, and it is also part of the ongoing success story of the north.

[Catherine West (Hornsey and Wood Green) (Lab)]

What assessment has the Secretary of State’s Department made of the impact of this proposal on the respiratory health of London children?

[Chris Grayling]

We have been very clear about two things. First, this runway cannot open if it does not meet air quality standards. Secondly, the air quality issue in west London is much bigger than the airport itself. This is the kind of challenge that we see in any busy metropolitan area. That is why we published our air quality strategy last summer, and it is why we need to get on with the job of making our car fleets much greener through lowering emissions. We are pushing ahead with low emission vehicles as fast as we can in this country.

[Mr Dominic Grieve (Beaconsfield) (Con)]

My right hon. Friend will be aware that Heathrow is a vital economic hub, but because of that, the traffic congestion that surrounds it is a really serious problem, particularly in parts of my constituency, where the emissions levels are high and the roads are almost impassable. Can he give me an assurance that, in looking at the development of a third runway, attention will be given to improving the infrastructure so that these areas benefit?

[Chris Grayling]

That has to happen. This is not just about infrastructure. My Department has already been in discussions with South Bucks Council about some of the issues that my right hon. and learned Friend’s area will face and about how they can be mitigated. One of the options is to improve the environment around the Colne Valley, and I am keen for my officials to work with him and the local authority on that. The provision of a community fund from Heathrow as a result of this will make it easier to fund projects such as those.

[Justine Greening (Putney) (Con)]

My right hon. Friend has said that Manchester airport will gain from this proposal, but the reality is that the modelling that his own Department and the Transport Select Committee have done shows that Manchester airport will have 11% or 12% fewer international flights by 2030 as a result of the Heathrow expansion. I spoke to the chief executive of Manchester airport today, and he explained to me that its catchment area for passengers is very different, so it is simply wrong to say to the House that Manchester will somehow benefit from this proposal.

[Chris Grayling]

I refer my right hon. Friend to the tables that we have published, which show that Manchester will grow international routes over the 2030s and 2040s, as will Heathrow. This is an important part of delivering growth around the United Kingdom. The reason for a hub airport is that, if there is a new destination such as an emerging city in China or a new, growing economy in Africa or Latin America, there is often simply not enough of a market from an individual location to support that new route. A hub brings together passengers from around the United Kingdom to make that route viable.

[Lucy Powell (Manchester Central) (Lab/Co-op)]

I am pre-empting some of the remarks that I will make in my speech later, but as a Manchester MP, I thought I should speak for Manchester airport on that point. Manchester airport refutes the figures in the forecasts, because it believes that it will exceed those passenger numbers even before the Heathrow expansion is on stream. The hub argument is not the right argument to make for Manchester, because most of its connectivity involves direct flights. There are other reasons that Greater Manchester MPs have come together to support this proposal, but that particular argument is not the one to make.

[Mr Deputy Speaker (Sir Lindsay Hoyle)]

Order. I am not going to stop interventions being made, but they must be short if we are to get through all the speakers.

[Chris Grayling]

We want to ensure that passengers who are flying to a hub airport from points in the UK can do so through a UK airport and not, for example, through a middle eastern hub. Manchester airport is a great success story and, on behalf of this country, I am hugely proud of how much it has achieved. I have been trying to work with the management of Manchester airport to help it to win business internationally, because I think it has a great model that it could take to other countries. I think that this will be a win-win. It will be a win-win for the north of England, for Manchester, for Liverpool, for Leeds, for Newcastle, for Edinburgh, for Glasgow, for Aberdeen, for Dundee, for Belfast and for Newquay.

[Several hon. Members rose—]

[Chris Grayling]

I will give way three more times, then I really must make some progress.

[Stephen Hammond (Wimbledon) (Con)]

I listened carefully to my right hon. Friend’s remarks about climate change, which will clearly require an upgrade to surface transport. Will he confirm whether the statement lays out the polluter pays principle and that the developer will be expected to pay a contribution to the surface transport upgrades?

[Chris Grayling]

Absolutely. Improvements to nearby roads and paying for parts of the rail projects that are due to happen are built into the plans. It is absolutely essential that that is the case. Heathrow airport will make a substantial contribution to that.

[Several hon. Members rose—]

[Chris Grayling]

I will give way to two more Members who have a particular interest in the issue.

[Andy Slaughter (Hammersmith) (Lab)]

The last time this House took a decision on this matter, in January 2009, the Secretary of State voted against a third runway. Since then the case for Heathrow has got worse on every indicator, whether it is the economic case, the cost to the public purse, the environmental case or the effect on the regions. Why has he changed his mind in the face of all that evidence?

[Chris Grayling]

We commissioned an independent review that asked where we should site new capacity in the south-east of England. The Airports Commission came back with a very clear view. We have studied that view and talked to all those who are promoting individual schemes, and as a Government we believe that this is the right thing to do. We stood on this in our election manifesto last year. I believe it is the right thing to do for Britain.

[Zac Goldsmith (Richmond Park) (Con)]

The Secretary of State said earlier that not a single regional airport has opposed this scheme, but will he not acknowledge that Manchester, Edinburgh, Birmingham and the East Midlands have all expressed opposition to it, not because they do not believe that they will see growth, but because they believe that whatever growth they do see will be in spite of Heathrow expansion and that it will be less?

[Chris Grayling]

The key point is that they will see growth. The opportunities are there right across the United Kingdom. As I said a moment ago, the body that represents regional airports has been very robust indeed in its support. I genuinely believe that this project brings benefits right across the United Kingdom, including at least 100 additional flights a week for Scotland, and potential new routes for Northern Ireland, unlocking the benefits of tourism and advanced manufacturing. We believe that this will deliver, across the United Kingdom, the kinds of connections we need for the future.

Let me touch briefly on a couple of other issues that have been raised. First, I have been very clear that this airport NPS says that expansion can happen only if the delivery is compliant with our legal obligations on air quality. I am very confident that the measures and requirements set out in the NPS provide a very strong basis for meeting those obligations, including a substantial increase in public transport mode share, and it could also include an emissions-based access charge to Heathrow airport and the use of zero or low-emission vehicles. Heathrow is already consulting on the potential of a clean air zone.

Crucially, communities will be supported by a package of compensation worth up to £2.6 billion. That is absolutely vital. It is not possible to deliver a project such as this without some consequences for people who live in the area—I am well aware of that. Our job is to make it as easy as possible for those people in what is inevitably going to be a very difficult set of circumstances. There is, therefore, a world-leading package of compensation, ensuring that homeowners who lose their homes or who live closest to an expanded airport will be paid 125% of the full market value of their property. It includes a comprehensive noise insulation programme for homes and schools, and a community compensation fund of up to £50 million a year, which can help in places such as the Colne Valley. The Government will also consider how local authorities can benefit from a retention scheme for the additional business rates paid by an expanded Heathrow.

To mitigate the noise impacts of expansion, the proposed NPS makes it clear that the Government intend to implement a six-and-a-half-hour ban on scheduled night flights, which could mean that some communities will receive up to eight hours of noise relief at night. That is a really important part of the proposal. It may be uncomfortable and difficult for airlines, but it is the right thing for local communities.

It is important to note that those measures will not be optional; they will be legally binding. Let me explain how we will ensure that that happens. We are governed by the Planning Act 2008, a good piece of legislation passed by the Labour party. Following a period of statutory consultation by a promoter, any subsequent application for a development consent order will be allocated to the Planning Inspectorate. At the end of the examination process, the inspectorate will report to the Secretary of State and the mitigation measures needed to comply with the NPS will be imposed on a successful applicant as requirements in the development consent order. The Act grants the relevant planning authority significant powers to investigate a breach of the requirements and ultimately to apply for an injunction or prosecute for failure to remedy a breach. In the Crown court the fine is unlimited and, in determining the level of the fine, recent judicial trends have tended to look to the benefit gained from the offence.

I can also confirm that expansion can and will be privately financed, at no cost to the taxpayer. It has to be delivered in the interest of the consumer, which is why in 2016 I set out my ambition to keep airport charges as close as possible to current levels, and why I have commissioned the Civil Aviation Authority to work with the airport to keep landing charges close to current levels. So far, that process has identified cost savings of £2.5 billion.

[Several hon. Members rose—]

[Chris Grayling]

Before I conclude, I will take a couple more interventions, but only from Members who have not already intervened, for obvious reasons.

[Mary Creagh (Wakefield) (Lab)]

May I take the Secretary of State back to the issue of climate change, which he glossed over? His policy statement says that passenger numbers can grow by 80% by 2050 and we can still meet our carbon budgets, but the Committee on Climate Change says that they must not grow by more than 60% by 2050. He has outlined a set of measures in his sustainability appraisal, but is he not just adopting the Micawber strategy of hoping that something is going to turn up on climate change?

[Chris Grayling]

The key thing that is happening right now on climate change and aviation emissions is a transformation of aviation technology. As I said earlier, the new generation of aircraft are already much more fuel efficient. We expect the introduction of biofuels and further technological changes. We have been not only working very carefully with the Airports Commission, but listening very carefully to the Committee on Climate Change. This House will form a view today, but we believe absolutely that we can deliver this expansion within our obligations.

[Several hon. Members rose—]

[Chris Grayling]

I will give way one final time and then conclude.

[Helen Whately (Faversham and Mid Kent) (Con)]

In the past, Heathrow has scored poorly on accessibility for people with disabilities. Will my right hon. Friend make sure that, as part of this expansion, Heathrow improves its accessibility for people with disabilities, particularly people with wheelchairs?

[Chris Grayling]

That is a really important point. It is not something that can and should wait until 2026. There have been one or two unfortunate incidents recently in the aviation sector, which should be as disability friendly as any other mode of transport. All airports and airlines have a duty to do that.

I am going to conclude because there is a long list of Members who want to speak. My message to the House is very simple. I believe that this project is in the strategic interests of our nation and that it will unlock prosperity in all the regions of this country. I think it will set us fair for the post-Brexit world. I believe this is essential for all our constituents, with the jobs it will create and the connections it will bring. We have to deliver it in a way that ultimately stretches every sinew to do the best we possibly can for the communities affected. My commitment to them is that we will do that. We will ensure tight rules around the permissions that are granted, and we will make sure that the commitments made by the airport and by this Government in the run-up to today’s vote are kept, enshrined in law and delivered for the future.

Ultimately, this is a project this country needs. It has been delayed for much too long. It falls to this House of Commons to take a decision today and I urge it to do so.

[Several hon. Members rose—]

--- Later in debate ---

[Andy McDonald]

My hon. Friend makes a very powerful point because this whole process is predicated on banking technological achievements that do not currently exist. We must be more thoughtful about this.

The Committee on Climate Change’s last progress report saw the UK failing to stay on track to meet its 2030 carbon targets. The CCC publishes its latest report on Thursday, and it reportedly will detail just how badly the Government are performing. The third runway will increase the number of flights by 50%, as per the Airports Commission report—table 12.1; page 238—yet any increase in aviation emissions will require other sectors to reduce their emissions beyond 85%. That is astonishingly imbalanced. The Department’s own projections show that a new runway at Heathrow will directly lead to a breach of at least 3.3 million tonnes of the 37.5 million tonnes carbon dioxide limit for 2050 set by the CCC without new policies to mitigate emissions.

[Chris Grayling]

It might be helpful if the House were to understand whether the hon. Gentleman’s position is that there should be no expansion of aviation at all.

[Andy McDonald]

I thought the right hon. Gentleman was going to provide some clarity from the Dispatch Box about the breach of the CO₂ limits that I have just described, but instead he asks that question. In fact, we know that we are talking about considerably more than that. It is utterly absurd for the Government to ask the House to vote on expanding Heathrow without a plan for reducing aviation carbon emissions. Under the revised NPS, there is a very real risk that aviation’s carbon emissions will be higher in 2050. Furthermore, the Department for Transport is not due to publish a new aviation strategy until 2019.

--- Later in debate ---

[Alan Brown]

I want that, but I also want guarantees of protection. I will come on to that point, so, again, I ask the hon. Gentleman to show a bit of patience and wait.

[Chris Grayling]

I am very grateful to the hon. Gentleman for giving way. Can he confirm whether Heathrow airport has this afternoon agreed with the SNP and the Scottish Government that it is prepared to set aside 200, not 100, slots at Heathrow airport for connections to Scotland? If that is the case, why are they continuing to object to Heathrow’s plans?

[Alan Brown]

Obviously, 200 slots are preferable to 100 slots. The thing is that only the UK Government can provide the protections. Heathrow has always said that it is willing to work with the Scottish Government, and with the UK Government, but it is only the UK Government who have the powers to provide the guarantees and protection.

--- Later in debate ---

[Alan Brown]

I do not recognise the exact figure mentioned by the right hon. Lady, but I do accept that Department for Transport figures suggest that direct connections and international connectivity will not increase as much if the Heathrow expansion goes ahead. Yet Scottish airports themselves do not express that concern and they do back the expansion of Heathrow, so I also have to trust their judgment on the matter.

[Chris Grayling]

Is the hon. Gentleman saying that the Scottish National party’s view is that because it is not sure how big Scotland’s bit of the cake is going to be, there should be no cake?

[Alan Brown]

I have also spoken up for other regional airports, because I would expect them to want the same protections that I am asking for when it comes to Scottish airports. It is up to the Secretary of State to give these guarantees and satisfy us on these points.

Paragraph 1.62 of the Government’s response to the Transport Committee’s recommendations explains that the Crown dependencies are also included in the 15% of additional slots. How will the figure actually break down between the Crown dependencies and all the various regional airports?

--- Later in debate ---

[Sir Patrick McLoughlin (Derbyshire Dales) (Con)]

There is no doubt that large-scale infrastructure projects will always be controversial, and no doubt that this is a large-scale infrastructure project that is incredibly controversial. That is one of the reasons why the coalition Government asked the Davies commission to do a report. That was supported by the House at the time, including by the Opposition. It was an attempt to try to get an expert opinion to take us forward through a report that we could take a proper decision on.

I am incredibly disappointed by the way that the SNP has responded today, because a big issue like this needs cross-party support to take it forward. These things do not happen in one Parliament; they go forward over many Parliaments. I heard the hon. Member for Kilmarnock and Loudoun (Alan Brown) question the Secretary of State on 5 June, just 20 days ago, when he said:

“To be fair, Heathrow has engaged fully with the Scottish Government, and has signed a memorandum of understanding in relation to commitments”.

He went on to say:

“However, all but one of the Scottish airport operators support it. So do the various Scottish chambers of commerce, because they recognise the business benefits that it can bring to Scotland, including…16,000 new jobs. That helped to sway me, and the Scottish Government have reiterated their support.”—[Official Report, 5 June 2018; Vol. 642, c. 175.]

Well, support means votes. It does not mean trying to abstain at the end of the day when an important decision like this comes about. However, I can assure the SNP that the Secretary of State for Scotland will carry on making the case for Scotland in the House of Commons and at the Cabinet table, and so will my 13 colleagues who represent Scottish constituencies. The people of Scotland can feel let down by the SNP for playing party politics, because that is absolutely all that this decision is about.

[Chris Grayling]

I thank my right hon. Friend for the important point that he is making. Will he join me in paying tribute to Scotland’s best representatives—the team of Conservatives who would not play party games like those we have just heard and who are acting truly in the interests of Scotland and the Scottish people?

[Sir Patrick McLoughlin]

My right hon. Friend is absolutely right. I urge SNP Members, even at this late stage, to change their minds on this and follow through on what they say they support with their votes, because this is too important a matter not to do so.

It is now 50 years since the Roskill commission first started its work on expansion. I was first made a junior Minister in the Department of Transport in 1989. I was originally told that I was going to be the Minister for roads, but the then Secretary of State, Cecil Parkinson, informed me that I was going to be the Minister for aviation and shipping—which was a bit of a surprise to me, especially bearing in mind my fear of flying at the time. In 1989, there were 368,430 air traffic movements at Heathrow airport. We have gradually seen those grow, up until 2006, when the figure was 477,000 movements a year, peaking in 2011 at 480,000. There has been growth and expansion at Heathrow, and during that time NOx emissions have in fact reduced. That has come about partly due to newer and better aircrafts. I think that Heathrow has got the message that it has to improve on environmental issues, and that has moved substantially up the track.

--- Later in debate ---

[Lilian Greenwood]

I hope the Minister addresses the issues around PSOs in his closing remarks.

The analysis supporting the decision is extensive; what is lacking is a fair and transparent representation of the information in the NPS to the House. For example, the Committee’s scrutiny revealed that the Department’s methods of presentation hid compelling noise modelling showing that more than 300,000 people are estimated to be newly affected by significant noise annoyance due to an expanded Heathrow. The total number of people in the noise annoyance footprint is estimated to be more than 1.15 million. Our investigations also indicated that those estimates are likely to be toward the lower end of the scale of potential impacts.

[Chris Grayling]

I hear what the hon. Lady says, but will she confirm that I made that clear in my statement to the House on the publication of the draft NPS? I also indicated that we expected that that would be a temporary process while technology changed, and that those figures assumed no mitigation measures, whereas we intend significant mitigation measures, including, for example, the night flight ban.

[Lilian Greenwood]

The Secretary of State has clarified that issue. I simply want to ensure that Members have the full range of information in front of them before they vote this evening.

There are many instances where the assumptions underpinning the analysis misrepresented what was likely to occur in practice. For example, the Department has assumed that all the capacity will be filled within two years of an opening date in 2026, yet Heathrow’s own business plan expects phased expansion over five to 10 years. Earlier this month, the Secretary of State told the House:

“We have accepted the recommendations…and will follow faithfully the Select Committee’s wishes to make sure that its recommendations are properly addressed at each stage of the process.”—[Official Report, 5 June 2018; Vol. 642, c. 174.]

These are fine words but, disappointingly, they are not matched with actions, and the NPS has not been updated.

The second objective of our Committee’s scrutiny was to ensure that the NPS provided suitable safeguards for passengers and affected communities. We know that the Government have been struggling to deal with air quality in London for years. The Committee made two recommendations on changing the wording of the NPS to provide air quality safeguards. The Government did not accept these recommendations. On noise, we wanted to ensure that there were clear safeguards for communities, including guaranteed respite. The Government did not accept most of our recommendations to safeguard communities from noise impacts. On surface access, we recommended a condition of approval to ensure that the scheme would not result in more airport-related traffic on London’s roads. The Government did not accept that recommendation.

[Chris Grayling]

Will the hon. Lady confirm that if there is a point of disagreement between us, it is simply that we accepted the Committee’s recommendations but also said that the appropriate moment to insert them would be at the development consent order stage, rather than the NPS stage? Will she confirm that we have very clearly said that we will insert those at the DCO stage?

[Lilian Greenwood]

I confirm that that is the Secretary of State’s view, and I will come on to my concerns about that approach in due course.

On protections for communities, we recommended that compensation be independently assessed and reviewed once the full impacts were known. The Government did not accept this recommendation. On protection for passengers, we recommended a condition of approval in the NPS that passenger charges be held flat in real terms unless not doing so was in their interests. The Government did not accept this recommendation.

Confidence in the Secretary of State for Transport

Chris Grayling Excerpts

Tuesday 19th June 2018 Commons Chamber

[Andy McDonald]

I do not know where the hon. Gentleman gets that figure from. If the Government take franchises back when they run out it costs diddly squat to take them back—zero—so he is talking utter nonsense.

No one other than the Government hold responsibility for their dogmatic stance. This dogma causes them to stand by and defend the rail structure that is manifestly not fit for purpose. It then falls to the Department for Transport to get involved to try to run the railway properly. It cannot do this. Today’s railway cannot run itself effectively because it was decapitated by privatisation and chopped into bits to facilitate private profit taking. Because there is no guiding mind overseeing the railway, the Department has to wade into the railway much more deeply than it should. Having taken this approach, the Government assume a greater deal of responsibility, but they have not shown themselves capable of discharging that responsibility.

The Department for Transport’s oversight has failed in three major ways. First, it appears that, when there was a decision on whether to press ahead with the timetable changes affecting Northern, the Department stood against allowing a deferral. Why did the Department not believe the professional advice it was given? Secondly, the Transport Committee heard from Network Rail yesterday that Thameslink phasing was first raised by the GTR readiness board in June 2017. Mr Halsall, the route managing director for the south-east, said the Department stood by and did not make a decision until November 2017—an astonishing five-month delay. What did the Secretary of State know and when did he know it?

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

I can confirm that the decision to proceed with a slimmed down timetable was taken by me in July 2017.

[Andy McDonald]

Well, I am saying to the Secretary of State quite clearly that a competent Secretary of State would have known this right at the outset and taken the appropriate steps. He did not. He allowed the situation to unwind.

Thirdly, the Thameslink industry readiness board—readiness board, there’s a laugh—formally requested that the GTR timetable changes should be scaled back, yet the Department dithered for two months. GTR boss Mr Horton said the board did not have an executive role, so he could not explain who was responsible for the meltdown—no one accountable and no one responsible.

I do not want to personalise the issue and I do not expect the Secretary of State to know every detail of what happens in his Department—[Interruption.] No, it is just everything he does and everything he stands for; it’s nothing personal. However, the three points I have described are all important failures of the Department for Transport at a high level. Stephen Glaister from the Office for Rail and Road is not an appropriate person to conduct a review into the timetable failings. The ORR itself has failed in its regulation of Network Rail, so it cannot be expected to conduct an independent investigation. This is yet another bad judgment by the Secretary of State for Transport. A new rail timetable is due to be implemented in December 2018. What funds, resources and support will the Secretary of State provide to ensure Network Rail’s planning capability can deliver the changes due in six months?

Today’s Financial Times reports the managing director of Trenitalia complaining about Network Rail and, in particular, the lack of integration between Network Rail and the train operating companies since privatisation. Did the Italians not do their homework on the reality of the UK’s railway? Recent events demonstrate more than ever that our railway is not integrated. I am afraid that the breach of faith and trust is so great that the Secretary of State’s credibility will never recover. There comes a point when the publicly accountable politician in charge of the railway should step up and shoulder the blame. It seems to me, and I suspect to many rail users, that we have more than reached that point.

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

Before I respond to the points raised by the hon. Member for Middlesbrough (Andy McDonald), can I just say a couple of things? First, I saw the comments that he made yesterday, and I thought he was very brave on the whole issue of medicinal cannabis—I pay tribute to him for that. The other thing is that I echo his words about the tragic events at Loughborough Junction yesterday. Our hearts go out to the families of those concerned and, indeed, to all those who dealt with what was clearly a horrible incident on the ground. We owe a huge amount to the British Transport police in particular and to staff across the railway who deal with horrendous situations like this from time to time. I am very grateful to them for what they did.

For years, the Opposition have demanded that the railways be renationalised and run by the Government, and they have claimed that they would be run much better if they were. Now it appears that they think the railways are already run by the Government, and that if something goes wrong, it is down to us. Frankly, I am going to let their confusion speak for itself and concentrate today on what really matters: getting things back into shape for passengers.

[Peter Kyle (Hove) (Lab)]

Will the Secretary of State give way?

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

Will the Secretary of State give way?

[Chris Grayling]

I will give way once or twice during my speech, but as you said, Madam Deputy Speaker, we need to make progress so that people get a chance to contribute. I am going to make some progress before I give way.

As I previously told the House, over the past weeks, passengers on parts of the GTR and Northern franchises have faced totally unsatisfactory levels of service, and I apologise to passengers that have experienced and are experiencing disruption. Since the timetable has been introduced, my Department and the industry have been working round the clock to restore the reliability of the service across the network. Hour by hour, my officials are in contact with GTR, Northern and Network Rail to work to improve the service to passengers.

As I told the House, I have commissioned an independent inquiry. This will be led by the independent rail regulator, Stephen Glaister, to examine why we are in this situation and to avoid it ever happening again. I have met the owners of the franchises and demanded that they improve their operational response, including, in the case of GTR, increasing its managerial capacity. Clearly, nobody wants us to be in the position we find ourselves in today, but let me be absolutely clear: everyone in my Department is as focused as we possibly can be on improving reliability for passengers.

[Several hon. Members rose—]

[Chris Grayling]

I will give way to the hon. Member for Westmorland and Lonsdale (Tim Farron).

[Tim Farron]

The Secretary of State will be aware that for two weeks in my constituency, there were no services at all along the Lake district—the service into Britain’s second biggest visitor destination. It took a heritage charter train to provide any service over the past few days, and I very much thank all those who were involved in making that happen. Does he agree that this is perhaps a sign that Northern, which is such a colossal franchise across the whole of the north of England, needs to be looked at in a more micro way? For example, we need to look at Cumbria and decide whether the Furness line, the coastal line and the Lakes line could instead be a separate franchise run by a provider that actually wants to run trains on a train line.

[Chris Grayling]

At the end of all this, I rule nothing out as regards the future structure of franchises. I obviously want to see the Lakes line recover to a normal service as quickly as possible. It has been a disappointment, actually, that the working practices between the employer and ASLEF have meant that it has not been possible to run a conventional service. That may seem extraordinary, but the employer agreements require that if one driver is taken off for training, all the drivers have to be. That is a strange situation. The Labour party talks about wanting to help passengers; it could put a bit of pressure on their union friends to relax some of those agreements now, so that we get the services back into shape as quickly as possible.

[Several hon. Members rose—]

[Chris Grayling]

I give way to my right hon. and learned Friend the Member for North East Hertfordshire (Sir Oliver Heald).

[Sir Oliver Heald (North East Hertfordshire) (Con)]

My right hon. Friend will know of the misery—because I have told him—on my line, with five stations where people’s lives have been blighted over recent weeks, but does he agree that privatisation does have one merit, which is that we can get rid of the operator if there is a huge crisis, and if this is not sorted out very soon, will he take the necessary steps to attack the franchise?

--- Later in debate ---

[Chris Grayling]

I am absolutely clear that that is the case. Indeed, as I will say in a moment, I have started the process of review to make sure that all options are open.

[Several hon. Members rose—]

[Chris Grayling]

I will take two more interventions; then I will make some progress.

[Peter Kyle]

I am grateful to the Secretary of State for giving way. The network is incredibly complicated, with a whole range of different providers, both publicly and privately owned. Does he understand that passengers look to the Government in their role of overseeing all the different providers? We do not have an independent board, with a chair and non-executives who scrutinise, challenge and support the network; we look to him as Secretary of State and to the Department. He is entirely reactive and not entirely proactive, which is what passengers need. Does he not accept some responsibility for what has happened—for the lack of oversight, the lack of scrutiny and the lack of challenge while this was happening, rather than just reacting afterwards?

[Chris Grayling]

I say very simply that the Labour party argues that the railway should be run by the rail experts. When the rail experts advise, as they did in early May, that they are ready for the timetable change—the train companies and Network Rail—it behoves Ministers to take the advice of those rail professionals. Labour is now saying that we should overrule the very people that it said, a few weeks ago, should be running the railways.

[Several hon. Members rose—]

[Chris Grayling]

I will give way one more time, to my right hon. Friend the Member for Sevenoaks (Sir Michael Fallon).

[Sir Michael Fallon (Sevenoaks) (Con)]

I am really grateful to my right hon. Friend. On the review, whatever the ownership, these are essential public services—in getting our constituents to work and getting their children to school—so will he consider taking stronger powers for himself in times of disruption that would allow him to direct the rail operators to work more closely together or to put in additional stops to help those who simply cannot get to work in the morning?

[Chris Grayling]

Absolutely; I agree with my right hon. Friend. This is something that we will have to look at very seriously indeed. There are many lessons to learn from all this, but most immediately, we need to get services back into place for passengers. I have been watching the issues at Eynsford and Shoreham in his constituency. It feels as though they are getting a better service than they were but there is still some way to go, and we need to make sure that that is covered.

[Debbie Abrahams]

Will the Secretary of State give way?

[Caroline Lucas]

Will the Secretary of State give way?

[Chris Grayling]

I will make some progress before I give way again.

I would like to update the House on how the industry is working to improve the reliability of services. On 4 June, Northern introduced a temporary timetable, including a targeted reduction in trains by around 6% to achieve a more deliverable service. Even with this reduction in service, there are still more trains running across the whole Northern network than before the timetable change in May. That does not mean that there are not individual areas that still have very significant problems, and I am very conscious that many passengers are still experiencing significant disruption, but there are signs that the service is stabilising. Over the first two weeks of the reduced timetable, 80% of trains arrived on time and 4% were cancelled or arrived significantly late, which is a significant improvement. This is not nearly good enough, but it is an improvement on what was happening before the introduction of that timetable. Northern is planning to run the timetable until the end of July, when it will review and, we hope, significantly increase the number of trains running, while ensuring continued stability. Stability is the most important thing for passengers so that they know what is expected, when trains are going to come and that they are going to come.

Officials from the Rail North Partnership—it is worth reminding Labour Members that this franchise is managed as a partnership between my Department and the leaders of local authorities in the north. Decisions about it are taken by the partnership board of Transport for the North, and it has been considering how to respond—[Interruption.] The shadow Secretary of State says it does not exist. This is the most devolved franchise in England. Responsibilities for managing and overseeing the franchise are shared through the board of Transport for the North—[Interruption.] Labour Members do not like it, but that is the truth.

GTR is also working to increase the predictability and reliability of journeys on its network. It is working actively to reduce the number of on-the-day cancellations and is now updating its timetables a week ahead. There is clearly still a lot more to do. In too many places, there is very significant disruption, but we have to move things in the right direction. Alternative travel arrangements are in place—for example, for passengers on the Brighton main line, who can have their Thameslink tickets accepted on Gatwick Express. Next month, GTR will introduce a full temporary timetable across its network as the next step to improve reliability and performance for passengers. This will allow GTR to slowly build up services to the new full timetable.

[Several hon. Members rose—]

[Chris Grayling]

I will take two more interventions, and then I will make progress to the end of my remarks so that I do not take up too much speaking time.

[Debbie Abrahams]

I am grateful to the Minister for giving way. He will remember that we met on 4 June, when I relayed some of the real issues that my constituents in Oldham and Saddleworth were facing. He said that we should be seeing improvements to the emergency timetable. I said that I would hold him to it, and he also said that he would look at contingency arrangements if there were not improvements. I went back to Greenfield station last Friday and spoke to constituents who use those trains. They said that they had seen only marginal differences, so will the Secretary of State now commit to bringing these franchises—Northern and TransPennine Express—in-house, and will he ensure that there is compensation for TPE passengers as well?

[Chris Grayling]

I will talk about compensation in a moment. I have been watching the performance carefully, and there have been some signs of stabilisation, as I say, but there is still a long way to go. [Interruption.] As I just set out, we have seen some stabilisation. I have been looking at the services day by day, and there is still a way to go, but the decline we saw after the timetable change has at least been arrested, and as the hon. Lady herself admits, there have been some improvements, although not nearly enough. I accept that, and I will take away her comments and look carefully at her line again, but there has been at least a stabilisation.

[Caroline Lucas]

rose—

[Mrs Maria Miller (Basingstoke) (Con)]

rose—

[Chris Grayling]

I give way to my right hon. Friend.

[Mrs Miller]

My right hon. Friend and I share a railway line, the Wessex route, which is under the stewardship of South Western Railway. It will be introducing a new timetable later this year. How will he ensure that the learnings from his independent inquiry are used to inform the implementation of the new timetable to avoid a replication of these sorts of problems in the future?

[Chris Grayling]

My right hon. Friend makes an important point—indeed, the shadow Secretary of State said the same. We will not go through with a timetable change in December that is not deliverable. A lot of working is being done right now to see what can and cannot be done. These problems cannot and will not be allowed to happen again. We also have new leadership at Network Rail. Andrew Haines, its new chief executive, stewarded the last major timetable change on the south-western network a decade ago, which went very smoothly. Andrew will be personally responsible for ensuring that any timetable change is deliverable.

I turn now to what happens next. We have seen some stabilisation on the Northern franchise, but I have yet to see any sign that GTR is getting to grips with the issue, so I have commissioned a formal review of the franchise to establish whether it has met and continues to meet its contractual obligations in the planning and delivery of the May timetable, including by ensuring sufficient capability and competence inside the group, and—importantly—to ensure that the owning groups invest sufficiently to minimise further disruption.

My main objective is to ensure there is a plan that I can have confidence in going forward. The review will inform my decisions about how to best use my enforcement powers and the next steps I can take with the owners of the franchise if they are found to be in breach of their obligations. Northern is a matter of ongoing discussion at the Transport for the North board. It has made progress, but not enough, and that is being closely monitored indeed.

The one thing on which I agree with the shadow Secretary of State is the need to put passengers first, and there are two areas where we have to work on that. I encourage all sections of the industry, including the trade unions, to put passengers first. Railway workers across the country are dedicated to providing a high level of service for their passengers and have been on the frontline facing the anger of passengers affected by the timetable disruption, and I am sorry they have had to experience that. I encourage trade union leaders to support their efforts and those of this industry to sort things out for passengers. It is a matter of great disappointment to me that the RMT has again today gone on strike on Northern at a time when the whole industry needs to work together to get the timetable back into shape.

The union makes spurious claims about safety, but trains have operated like this in the UK for more than 30 years. The London underground uses this system, as do trains around the network, and no one at Northern is losing their job or any pay. These changes will modernise the railway in the north and deliver better services for passengers and were signed up to by all the members of the partnership managing that franchise in the north. It is worth adding that on the Southern network, ASLEF, the train drivers union, reached a perfectly sensible agreement that should point the way forward. It is particularly disappointing, therefore, to see the Opposition acting effectively as a mouthpiece for a trade union that regards a Labour party led by the right hon. Member for Islington North (Jeremy Corbyn) as too right wing to affiliate to. I urge him and his colleagues to urge his union supporters to back down from this dispute, stop calling strikes at a time of disruption on Northern and work together to sort out these problems.

I am clear that passengers on these lines have been severely affected by these issues and need to receive additional compensation. My Department is working closely with the TfN board, Network Rail, train operators and stakeholders to introduce the right compensation scheme as soon as possible. It will be funded by the industry. The Rail Minister has already recommended to the board that passengers who buy weekly, monthly or annual tickets on affected Northern and TPE routes will be eligible to claim up to four weeks’ compensation. As part of the scheme, the industry will provide financial support to TfN to deal with other costs that have arisen from the disruption, including on the Lakes line. There will also be a marketing campaign to encourage people to travel by train in the affected areas. I expect the TfN board to confirm the final details of the compensation scheme come its next meeting on 28 June and payments to begin in early July. I will confirm the full details of the compensation package for Thameslink and Great Northern customers on the affected routes at the same time. This will follow approximately the same approach as that on the Southern network. Because of the numbers of people involved, it will take a little longer to begin compensation payments, but I have told GTR that these need to begin before the end of July. Finally, we are considering options to further support the northern economy, and we expect Northern to fund a marketing campaign encouraging travel to affected areas by train when it resumes full operations, particularly on the Lakes line.

Political point scoring does not help passengers. We have seen that today. We need to work to deliver the best outcome for passengers and to improve services urgently. That is what I am focused on, what my Department is focused on and what the Government are focused on.

[Several hon. Members rose—]