Transport Council

Chris Grayling Excerpts

Thursday 14th June 2018 Written Statements

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

I attended the only formal Transport Council under the Bulgarian presidency (the presidency) in Luxembourg on Thursday 7 June.

The Council reached a general approach on a proposal to revise the current regulation on safeguarding connectivity and competition in international air transport, which is intended to provide protection against subsidisation and unfair pricing practices in the supply of air services from non-EU countries. During the discussion, I emphasised the importance of connectivity, consumer choice and avoiding market distortions.

Following this, the Council adopted the presidency’s proposal for a general approach on the directive on port reception facilities. I supported the aim to further protect the marine environment against illegal discharges of waste from ships and to ensure the efficiency of maritime operation in ports, and recognised that concerns raised by the UK had been addressed.

Next, the presidency presented a progress report on the revised rail passengers’ rights and obligations regulation, which was noted by the Council.

Following this, the Council considered a number of files in phase one of the mobility package (published in May 2017). First, the presidency concluded that the Council had reached a general approach on the compromise proposal on the revised European electronic road tolling services (“EETS”) directive, on which I voiced my support. Next, when considering the proposed directive on hired goods vehicles, the presidency observed it did not have sufficient support for a general approach and concluded that the Council was unable to adopt the proposal. In the discussion, I noted that the UK supported the general approach, but acknowledged that other member states wanted further discussion.

Over lunch, Ministers discussed the financing of infrastructure projects in the EU and connectivity in the western Balkans.

Following this, the presidency presented progress reports on the remaining elements of phase one of the mobility package, covering proposals designed to improve the clarity and enforcement of the EU road transport market (the “market pillar”), and proposals on the application of social legislation in road transport (the “social pillar”). I outlined the outstanding areas of concern for the UK and committed to working constructively toward a general approach and deal moving forward.

Next, the presidency presented two progress reports on proposals from phase two of the mobility package (published November 2017). The presidency provided updates on the proposal to amend the current combined transport directive, which aims to encourage and facilitate modal shift away from the roads and onto alternative means of transport, and to reduce congestion, and the clean and energy-efficient vehicles directive.

Under any other business, several items were discussed. Notably, Commissioner Bulc presented the third and final mobility package proposals, which focused on safety and technology in transport. Commissioner Bulc also presented an action plan on military mobility; in reply to Luxembourg, she confirmed that a range of actions were being pursued under the EU cycling strategy and, in reply to Finland, set out plans for an upcoming public consultation on summertime arrangements. Furthermore, Sweden noted the 18 and 19 June summit on connected and autonomous vehicles in Gothenburg; and Austria presented transport plans for its incoming presidency of the Council of the European Union.

Regarding bilateral engagement, I met with Commissioner Bulc and my ministerial counterparts from Austria, Belgium, Bulgaria, Denmark, Finland, France, Germany, Netherlands, Malta, Poland and Romania.

[HCWS765]

Contingency Liability: Notification

Chris Grayling Excerpts

Monday 11th June 2018 Written Statements

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

I have today laid before Parliament a departmental minute describing three contingent liabilities relating to a tripartite deal between Heathrow Airport Limited (HAL), First Greater Western Limited (FGW) and the Department for Transport.

Unfortunately, due to the urgent need to finalise the deal and the confidential commercial nature of the negotiations it was not possible to notify Parliament of the particulars of the liability and allow the required 14 days’ notice prior to the liabilities going live. A delay would have resulted in higher HS2 costs and an increased scheduling risk impacting on the December 2026 opening date for phase 1.

The main element of the deal is a service agreement between FGW, HAL and Heathrow Airport Operating Company (HEOC) for the continuation of non-stop rail services between Paddington and Heathrow Airport. Under this agreement FGW will assume operation of Heathrow Express services. Although this is an agreement between private sector companies, there are significant benefits to the Department, in particular, savings generated from not building a replacement depot for Heathrow Express rolling stock at Langley (the land on which the current depot is situated at Old Oak Common is needed by HS2 for the construction of the high speed railway).

In order to conclude the deal, and secure departmental/HS2 benefits, the Department needed to offer indemnities in relation to three risks that the parties were unwilling or unable to assume or manage. The financial exposure is not high—a conservative estimate is c£12 million. But they are unusual and outside the Department’s normal course of business.

The three contingent liabilities are: first, indemnifying FGW against the cost of any delay to delivery of new rolling stock required to operate Heathrow Express services. The Department’s exposure is estimated to be £2.25 million; second, indemnifying FGW against the cost of any redundancies following the transfer of staff, mainly drivers, from HAL to FGW. The cost is estimated to be c£3.2 million; third, an indemnity against contagion from a wider industrial relations dispute—nationwide or franchise wide. The exposure is estimated to be £6.8 million.

The Treasury approved these liabilities before they were activated. However, if any Member of Parliament has concerns, he/she may write to me within the next 14 parliamentary sitting days. I will be happy to examine their concerns and provide a response.

Attachments can be viewed online at: http://www. parliament.uk/business/publications/written-questions-answers-statements/written-statement/Commons/2018-06-11/HCWS748.

[HCWS748]

EU Transport Council

Chris Grayling Excerpts

Wednesday 6th June 2018 Written Statements

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

I will attend the only formal Transport Council under the Bulgarian presidency (the presidency) taking place in Luxembourg on 7 June.

The Council is expected to reach a general approach on a proposal to revise the current regulation on safeguarding connectivity and competition in international air transport, which is intended to provide protection against subsidisation and unfair pricing practices in the supply of air services from non-EU countries. The Government places great importance on effective competition and liberalisation as a key enabler of international connectivity and considers that the proposed general approach is satisfactory.

Following this, the Council will be considering a general approach on a proposed directive on port reception facilities. The proposal aims to achieve a higher level of protection of the marine environment by reducing waste discharges at sea, as well as improved efficiency of maritime operations in port by reducing the administrative burden and by updating the regulatory framework. In negotiations, the UK has been generally supportive of the aims of the proposal but required clarification and consideration of the impacts to ensure that the final directive does not disproportionality impose additional or unnecessary burdens. We have also been successful in securing compromise and flexibility within the proposal, to ensure that the improvements to the directive do not unduly burden small ports and small ships.

Next, the Council will consider a number of files in phase one of the mobility package (published in May 2017). Firstly, the presidency will give a progress report focusing on proposals designed to improve the clarity and enforcement of the EU road transport market (the ‘market pillar’), and proposals on the application of social legislation in road transport (the ‘social pillar’).

The Council is expected to reach general approaches on two of the proposals in the Package. The first of these is a proposal to revise the current directive on the European electronic road tolling service (‘EETS’). The UK views the proposals for a revised EETS directive favourably. the proposal contains provisions that will assist the enforcement of toll and road user charge collection. The second is a proposal on goods vehicles hired without drivers, which is intended to make it easier for undertakings to hire vehicles registered in a member state other than that where the undertaking is established. This is not a matter with significant practical implications for the UK given the relative rarity of operators hiring goods vehicles in this way in the UK. We are content for both of these general approaches to be agreed.

Following this, the presidency has prepared two progress reports on proposals from phase two of the mobility package (published November 2017). The presidency will provide an update on the state of play thus far on proposals to amend the current directive on combined transport, which aims to encourage and facilitate modal shift away from the roads and on to alternative means of transport and reduce congestion, and the proposal to broaden the scope of the current directive on clean and energy efficient vehicles, where the UK is leading the transition to cleaner road transport.

Next, there will be a progress report on the proposed revision to the regulation on rail passengers’ rights and obligations. The UK shares the commission’s objective of strengthening the rights of rail passengers. We therefore support in principle the proposal’s aim of standardising and improving passenger rights, including by improving access for people with disabilities or reduced mobility.

Under any other business, the commission will present phase three of the mobility package (published May 2018), followed by information on the action plan for military mobility, and an update on the implementation of the EU cycling strategy. The delegations from Sweden and Greece will then provide information on automated and connected driving and functioning of the fair competition framework in the aviation sector within the EU, respectively. The commission will then provide information on the state of play for EU summer-time arrangements, and finally, the Austrian delegation will present the transport work programme of their forthcoming presidency of the Council of the European Union.

[HCWS737]

Contingent Liability

Chris Grayling Excerpts

Wednesday 6th June 2018 Written Statements

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

I have today laid before Parliament a departmental minute describing a contingent liability relating to a blight agreement between me, as Secretary of State for Transport, and Heathrow Airport Limited (HAL).

If the proposed airports national policy statement is designated, land in the location identified as potentially suitable for the development of the north-west runway scheme becomes blighted. Owners of qualifying land (predominately owner-occupiers of private housing) within that location would be able to serve a blight notice on the Secretary of State, which if valid would, in effect, both authorise and oblige the Secretary of State to purchase the land.

In order to avoid my department having to cover the cost of blight claims I, as Secretary of State, have entered into an agreement with HAL under which HAL assume the financial liability for successful claims. In the event the proposed NPS is designated, the cost of meeting blight claims will need to be met by my Department if the agreement were for some reason ineffective to transfer liability.

The maximum estimated contingent liability for the blight claims is £160 million, though actual gross liability is likely to be much lower, c. £5 million to £20 million, as most owners of qualifying property are thought likely to wait for the more generous offer of 125% from HAL, available following the granting of any development consent.

The Treasury approved this liability and the chairs of the Public Accounts Committee and the Transport Committee were notified of this contingent liability by letter of 16 May due to the confidential nature of the contingent liability at that time. A period of fourteen sitting days beginning on 21 May has been provided for issues or objections to be raised, and final approval to proceed with incurring the liability will be withheld pending an examination of the objection.

[HCWS739]

Airports National Policy Statement

Chris Grayling Excerpts

Tuesday 5th June 2018 Commons Chamber

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

With permission, Mr Speaker, I would like to make a statement about the proposed expansion of Heathrow airport.

The Government have a clear vision: to build a Britain fit for the future and a Britain with a prosperous jobs market and an economy that works for everyone. That is why I come to the House to mark an historic moment. Today I am laying before Parliament our final proposal for an airports national policy statement, which signals our commitment to securing global connectivity, creating tens of thousands of local jobs and apprenticeships, and boosting our economy for future generations by expanding Heathrow airport. It is an example of how the Government are taking forward their industrial strategy.

As you know, Mr Speaker, taking such a decision is never easy. This issue has been debated for half a century. My Department has met local residents and fully understands their strength of feeling. But this is a decision taken in the national interest, based on detailed evidence. In 2015, the independent Airports Commission concluded that a new north-west runway at Heathrow was the best scheme to deliver additional capacity, and in October 2016 we agreed. We ran two national consultations during 2017 and received more than 80,000 responses. All the points raised have been carefully considered, and today we are publishing the Government’s response.

To ensure fairness and transparency we appointed an independent consultation adviser, the former Court of Appeal judge, Sir Jeremy Sullivan. Our draft NPS was scrutinised by the Transport Committee, and I thank the Chair of the Committee and her team for the thoroughness of their work. I was pleased that they, like me and my colleagues in the Government, accepted the case for expansion and concluded that we are right to pursue development through an additional runway at Heathrow. We welcome and have acted on 24 out of 25 of its recommendations. Our response to the Committee is also being published today.

This country has one of the largest aviation sectors in the world, contributing £22 billion to our GDP, supporting half a million jobs, servicing 285 million passengers and transporting 2.6 million tonnes of freight last year. The time for action is now. Heathrow is already full, and the evidence shows that the remaining London airports will not be far behind. Despite Heathrow being the busiest two-runway airport in the world, its capacity constraints mean that it is falling behind its global competitors, impacting the UK’s economy and global trading opportunities.

Expansion at Heathrow will bring real benefits across the country, including a boost of up to £74 billion to passengers and the wider economy, providing better connections to growing world markets, and increasing flights to more long-haul destinations. Heathrow is a nationally significant freight hub, carrying more freight by value than all other UK airports combined. A third runway would enable it to nearly double its current freight capacity.

In addition—this is crucial—this is a project with benefits that reach far beyond London. We expect up to 15% of slots on a new runway to facilitate domestic connections across the UK, spreading the benefits of expansion to our great nations and regions. As well as new routes, I would expect there to be increased competition on existing routes, giving greater choice to passengers. I say very clearly that regional connectivity is one of the key reasons for the decision we have taken.

I recognise the strong convictions that many Members of this House and their constituents have on this issue, and the impacts on those living in the local area. It is for that reason that we have included strong mitigations in the NPS to limit those impacts. Communities will be supported by up to £2.6 billion towards compensation, noise insulation and improvements to public amenities— 10 times bigger than under the 2009 third runway proposal. This package is comparable with some of the most generous in the world and includes £700 million for noise insulation for homes and £40 million to insulate schools and community buildings. The airport has offered 125% of the full market value for homes in the compulsory and voluntary purchase zones, plus stamp duty, moving costs and legal fees, as well as a legally binding noise envelope and more predictable periods of respite.

For the first time ever, we expect and intend to deliver a six-and-a-half-hour ban on scheduled night flights. But my ambitions do not stop there. If the House agrees and the NPS is designated and the scheme progresses, I will encourage Heathrow and airlines to work with local communities to propose longer periods of respite during a further consultation on night flight restrictions. We will grant development consent only if we are satisfied that a new runway would not impact the UK’s compliance with air quality obligations. Advances in technology also mean that new planes are cleaner, greener and quieter than the ones they are replacing.

Earlier this year a community engagement board was established, and we appointed Rachel Cerfontyne as its independent chair. It will focus on building relations between Heathrow and its communities, considering the design of the community compensation fund, which could be worth up to £50 million a year, and holding the airport to account when it comes to delivering on its commitments today and into the future.

There has been much debate about the costs of this scheme. Our position could not be clearer: expansion will be privately financed. Crucially, expansion must also remain affordable to consumers. We took a firm step when I asked the industry regulator, the Civil Aviation Authority, to ensure the scheme remains affordable while meeting the needs of current and future passengers. This process has already borne fruit, with the identification of potential savings of up to £2.5 billion. I am confident that that process can and should continue, that further cost savings can be identified and that the design of the expansion can continue to evolve to better reflect the needs of consumers. That is why I have recommissioned the Civil Aviation Authority to continue to work with industry to deliver the ambition that I set out in 2016 to keep landing charges at or close to current levels. That work will include gateway reviews, independent scrutiny and benchmarking of proposals, which I know are of paramount importance to British Airways, Virgin Atlantic and the wider airline community.

I want to talk now about scheme delivery and ownership. The north-west runway scheme put forward by Heathrow was selected by the Government following a rigorous process. Since then, Heathrow has continued to make strong progress, having already consulted on its scheme design and airspace principles earlier this year. Some stakeholders have suggested that we should now look again at who delivers expansion. While I, and we, will always retain an open mind, my current assessment is that caution is needed at this stage. Heathrow is an operational airport under a single management, and I am clear that it is currently the only credible promoter that could deliver this transformational scheme in its entirety.

I welcome the Civil Aviation Authority’s April consultation, which expects Heathrow to engage in good faith with third parties to ensure that expansion is delivered in a way that benefits the consumer. However, that needs to be balanced against the need for timely delivery, and that is why my Department will be working closely with Heathrow to enable delivery of the new runway by its current target date of 2026.

Heathrow is already Britain’s best-connected airport by road and rail. That will be further strengthened by future improvements to the Piccadilly line, new links to Heathrow through Crossrail, connections to High Speed 2 via an interchange at Old Oak Common and plans for western and southern rail access to the airport. On 24 April, I met the industry and financial backers who can potentially come forward with plans to deliver the new southern rail access to the airport.

Even with today’s announcement, a new operational runway at Heathrow is still a number of years away. The Airports Commission recommended that there would also be a need for other airports to make more intensive use of their existing infrastructure, and we consulted on that in the aviation strategy call for evidence last year.

Apart from Heathrow, I would also like to confirm today that the Government support other airports making best use of their existing runways. However, we recognise that the development of airports can have negative as well as positive local impacts, including on noise levels. We therefore consider that any proposals should be judged on their individual merits by the appropriate planning authority, taking careful account of all relevant considerations, and particularly economic and environmental impacts.

Furthermore, in April we set out our next steps, which will see us work closely with industry, business, consumer and environmental groups to develop an aviation strategy that sets out the long-term policy direction for aviation to 2050 and beyond, while addressing the changing needs and expectations of passengers. It will set out a framework for future sustainable growth across the United Kingdom, how we plan to manage our congested airspace, and how we plan to use innovative technology to deliver cleaner, quieter and quicker journeys for the benefit of passengers and communities. Airspace modernisation has to be taken forward irrespective of the decision on the proposed new runway, and to do so we expect multiple airports across the south of England to bring forward consultations on their proposals on how to manage the airspace around their locations.

Returning to Heathrow, the planning system involves two separate processes: one to set the policy—effectively outline planning consent—which is our national policy statement, and then, if the House votes in favour of it and it is then designated, a second process for securing the detailed development consent that the airport will require. The next steps would therefore be for Heathrow to develop its plans, including details of the scheme design and airspace change, and hold a further consultation to allow the public a further say on the next phase of Heathrow’s plans and additional opportunities to have their voices heard. Any application for development consent will of course be considered carefully and with an open mind, based on the evidence provided. The process includes a public examination by the independent Planning Inspectorate before a final decision is made.

Alongside the NPS today, I have published a comprehensive package of materials that I hope and believe will enable Members of the House to make an informed decision ahead of the vote. It is very comprehensive, and I hope that it will provide answers to the questions that Members will have.

I hope that Members will feel that the scheme is crucial to our national interest and that we need to work together to deliver it in order to create what I believe is an absolutely vital legacy for the future of this country. I hope that Members across the House will get behind the plan and support this nationally strategically important project, and I commend this statement to the House.

[Andy McDonald (Middlesbrough) (Lab)]

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

Today’s statement has been a long time coming. We have had 11 years of consultation and nine years since the expansion was given the green light. The Secretary of State came to the House yesterday to explain the calamitous implementation of new rail timetables. He now stands at the Dispatch Box today and expects the House to accept what he says about the most significant of infrastructure projects. I am sorry, but this Secretary of State has form. The only reason he is at the Dispatch Box is that the Prime Minister is too weak to sack him. I regret that he simply does not enjoy the confidence of the House. [Interruption.] Government Members complain, but I did not hear them shouting their support for him yesterday. In fact, the loudest criticisms came from Members on their Benches.

Labour will consider proposed expansion through the framework of our well-established four tests: expansion should happen only if it can effectively deliver on the capacity demands; if noise and air quality issues are fully addressed; if the UK’s climate change obligations are met in their entirety; and if growth across the country is supported. We owe it to future generations to get all those factors absolutely right. If the correct balance is not found, the law courts will quite rightly intervene.

I commend the superb work of the Chair and members of the cross-party Transport Committee. Their report into the airports national policy statement published in March left no stone unturned. Their support for approving the NPS is explicitly conditional upon 25 recommendations being addressed. The Secretary of State says that he has “acted on” 24 of the 25 recommendations. What does that mean? Are they going to be conditions or simply aspirations and expectations? For example, the Committee concluded that there was a high risk of the NPS breaching air quality compliance. Furthermore, the Department for Transport has not published a comprehensive surface access assessment, so it is impossible to demonstrate that the target of no more airport-related traffic can be met. His statement today takes that issue no further forward.

The Committee highlighted that there was almost no mention of potential cost and investment risk. What guarantees can the Government provide that the high-cost risks will not end up being covered by the public purse? How can the business case for expansion ensure that passenger benefits are met? The Secretary of State says he will keep charges close to current levels. What sort of assurance is that? Further uncertainties remain about the NPS as originally drawn, on noise analysis and flightpath modelling. It remains to be seen whether the revised NPS adequately addresses those and other issues.

The Secretary of State says that he will encourage Heathrow to work with communities on longer respite periods. What teeth are there in any of these proposals or promises? His claims about the benefits of new technologies have to be based on real evidence and not some fanciful expectation of future advances. Some of us have not forgotten his empty promises on dual fuel trains, which we are now told do not exist. He says he intends and expects 15% of slots to be for domestic connections. How will that be secured? Intentions, expectations and encouragements are simply not enough.

It is imperative that the Government provide guarantees to the House that the recommendations and conditions established by the Transport Committee will be embedded in the revised NPS. Yesterday reminded Members across the House that the assurances of this Secretary of State are anything but cast-iron. It is absolutely essential that the Government embed the Select Committee’s recommendations in their revision of it. I remind the House that the Committee says very clearly that the planning process should move to the next stage only if its concerns, as detailed in its excellent report, are properly addressed by the Government in the final NPS. It is our task to scrutinise the revised NPS in full detail in the coming days. Labour will faithfully follow our framework tests and follow the evidence across the 25 recommendations. We will not rely on the Secretary of State’s assurances, which are sadly not worth the Hansard they are printed on.

[Chris Grayling]

I think you will agree, Mr Speaker, that that was a rather disappointing response. The one thing the shadow Secretary of State did not say was whether he actually supported the expansion of Heathrow airport. I happen to believe that it is strategically the right thing for our country, for business and for jobs. I very much welcome the positive encouragement I have received from Members across the House in the past few months. I regard this project as being vital to Members of Parliament in the north of England, Wales, Northern Ireland, Scotland and the south-west—I see the links to Newquay airport as being one of the real opportunities here.

The shadow Secretary of State raised several detailed points. There is a huge amount of material—thousands of pages—that he and others can read through, but let me pick up on just a few of the items he raised. He mentioned air quality. The runway cannot be opened if it does not meet air quality rules, but I have been clear all along that the air quality issues around Heathrow are much more than issues of the airport itself; they are typical of the air quality issues that face metropolitan areas in this country and elsewhere in the world, which is why my right hon. Friend the Environment Secretary has brought forward an air quality plan. In addition, Heathrow Airport is consulting on a low emissions zone that would make it impossible, without a substantial charge, to bring a higher-emission vehicle into the airport when the runway is open—assuming that the parliamentary and development processes go according to plan. So that has to be addressed; it is not an optional extra for the airport—it has to happen.

The shadow Secretary of State made a point about night flights. That has to be and will be a planning condition. He also asked about the Select Committee’s recommendations. About half have been embedded in the NPS; the remaining half will either happen at the development consent order stage or are requirements for the CAA to follow up on and deliver. We have accepted the recommendations, however, and will follow faithfully the Select Committee’s wishes to make sure that its recommendations are properly addressed at each stage of the process. As I said earlier, this is a multi-stage process, and the Committee’s recommendations referred not just to the NPS but to the subsequent stages.

The shadow Secretary of State asked about landing charges, which, of course are regulated by the CAA. I have been clear that landing charges have to stay pretty much at current levels in real terms. This cannot be an excuse for the airport to hike its landing charges substantially. That would not work for consumers or our economy. Equally, the commitments on night flights have to be addressed. This project will not have credibility if such promises to the local community are not properly fulfilled.

The shadow Secretary of State asked about investability. We have had the investability and delivery date independently assured. I have also talked to Heathrow shareholders, who have emphasised to me their commitment to this project. I am absolutely of the view that the project can and will be delivered. We simply have to look at the price at which slots for Heathrow airport sell on the open market to realise that this is one of the world’s premier airports and enormously attractive to international airlines and that expanding its route network will deliver jobs all around the country.

That is the most important thing for everyone in the House to bear in mind, whether they are in Scotland, the north of England, the south-west, Wales or Northern Ireland, and we should not forget our Crown dependencies and Gibraltar either. They also depend on air links to the UK. This project is a way of making sure that our citizens—the people we represent—and the businesses they work in have access to the strategic routes of the future that they will need. If we are to be a successful nation in the post-Brexit world, we will need advances such as this one that can make a real difference to the future of this country.

I am disappointed, therefore, that the Labour party has not said that it supports expansion in principle. I do support it, as do Members in all parts of the House, and in the coming days we will have a vote—we have 21 sitting days before the deadline for that vote. In the time ahead, I and my officials will happily talk to parliamentary colleagues about the details and, I hope, reassure anyone with doubts that this is the right project for the country.

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

I welcome my right hon. Friend’s announcement—the report that the coalition Government asked Howard Davies to produce was very comprehensive, and he has acted on it—but will he say a little more about how he will ensure that the costs are properly controlled? He is absolutely right to say that at the end of the day Heathrow has the great development opportunity that it wanted, but that development must involve reasonable costs that do not impose ever growing pressures on both operators and passengers.

[Chris Grayling]

My right hon. Friend has made a crucial point. That is, obviously, a matter of great importance to the airlines. They do not want fares to rise, and nor do we. This should be a development that leads to more choice for passengers, as well as more competition and, as a result, lower fares. One of the benefits of expanding the network will be for the United Kingdom, because we need more operators within the UK, and we may be able to achieve better competition on routes into Heathrow.

I have statutory powers, which I have already used on two occasions, to enable the Civil Aviation Authority to monitor the costs of the project to ensure that they are driven down. I renewed those powers recently, and I will continue to do so whenever necessary.

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

I thank the Secretary of State for giving me early sight of his statement.

This has been another polarising issue, and aspects of the UK Government’s approach in the past and the delaying tactics have not helped matters. However, I welcome the progress that is being made, and the fact that a vote appears to be imminent. The option of Heathrow expansion was recommended by the Airports Commission. It was also backed by the Transport Committee, as we have heard, and I pay tribute to its work in scrutinising the national policy statement.

To be fair, Heathrow has engaged fully with the Scottish Government, and has signed a memorandum of understanding in relation to commitments to Scotland. It refers to a construction logistics hub, and, for selfish constituency reasons, I should like that to be based at Prestwick airport. There is also a commitment to a £10 million route development fund, and a commitment to promoting Scotland in the future. I must be honest: for me, supporting expansion at Heathrow from a Scottish perspective was initially counter-intuitive. 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 up to 16,000 new jobs. That helped to sway me, and the Scottish Government have reiterated their support.

Let me ask the Secretary of State some questions about his statement. He spoke of benefits for nations and regions, and an expected

“15% of slots on a new runway to facilitate domestic connections across the UK”.

However, he has still not explained how he will ensure that that happens. Will conditions be imposed, and will he consider Scotland’s needs? How will he ensure that what is proposed for Heathrow will increase passenger numbers at Scottish airports? He said that he had recommissioned the CAA to work with the industry to keep charges close to their current levels, but he did not make it clear how there could be certainty that future charges would be kept under control. What will happen if Heathrow cannot commit itself to the longer period that the Secretary of State has just thrown into the mix, and what will he do to ensure that there is more transparency on new flight paths? Finally, given the UK Government’s failures to date and their defeats in court in relation to air quality, what will be done to ensure that air quality impact assessments are robust and that the correct control measures are introduced?

[Chris Grayling]

I am grateful to the hon. Gentleman, the Scottish Government and the Scottish National party for their support. I think it important for us to ensure that Scotland is well served by the expansion of Heathrow. I think the hon. Gentleman understands, given the support that has come from the Scottish regional airports and the Scottish business community, that by providing more strategic routes for the United Kingdom from Heathrow we will provide links to important new developing markets around the world.

The hon. Gentleman asked about the protection of slots. We are considering what is the best mechanism. It seems that the public service obligation mechanism may be the best, but I want the most robust legal mechanism to operate by the time we reach the development consent order process, in order to protect the allocation of slots to regional connections in the United Kingdom. I do not want, and will not accept, circumstances in which slots somehow disappear and are allocated to a long-haul route rather than a UK route. This must be a project that benefits the whole United Kingdom. As for passenger numbers, our forecasts show that virtually all regional airports will continue to grow, and I expect the hon. Gentleman to see growth at Scottish airports as well as on routes to and from Heathrow.

The hon. Gentleman asked about the setting of charges. The CAA sets the charges, and it has absolute regulatory power to set them at the level that is appropriate for the airport. It has the teeth to deliver that at the moment. He asked about the respite issue. Let me make it clear that the night flight ban is an absolute requirement. We would reconsider that only if both the airport and the local communities agreed that something different should be done. The local communities would have to come back to us, with representatives of the airport, and say, “We would like to do something slightly different.” From the Government’s point of view, the ban is a non-negotiable element.

As for the hon. Gentleman’s final question, given that there are opponents of the scheme, I think it highly likely that it will be challenged in the courts. We have done exhaustive work, and there is a huge amount of material for the House to consider. We are following a statutory process, and only if there is a supportive vote in the House of Commons can the project go ahead. I hope that that is enough to set the project on the right path.

[Justine Greening (Putney) (Con)]

This decision is not only wrong for the UK and its competitiveness; it is wrong for the London communities who will be blighted by the pollution from an expanded Heathrow. The Secretary of State says that the runway cannot be opened unless air quality conditions are met. The document “Heathrow Airport Ltd: statement of principles” contains a cost recovery clause for Heathrow in case the project does not proceed following this decision. Can the Secretary of State confirm that taxpayers might have to pick up a bill for billions of pounds?

[Chris Grayling]

The project cannot pass the development consent order stage unless the airport can demonstrate that it will follow air quality guidelines. We have been very clear about that, which is why Heathrow is consulting on a potential low-emission zone. The whole point about air quality, however, is that it is a broader problem, for London and other cities, which will need to be dealt with well before 2026. That is why the Government have issued air quality proposals, and that is why we are determined to see changes in society that tackle the air quality issue.

[Lilian Greenwood (Nottingham South) (Lab)]

I welcome the statement, and the Secretary of State’s acceptance of the points made by the Transport Committee. We look forward to examining the detail in the final national policy statement. We said that an expanded Heathrow must deliver for the whole of the UK, not just the south-east of England. Can the Secretary of State explain how public service obligations can guarantee that a new runway will result in more domestic routes which will be distributed fairly across the regions and nations of the UK, and can he tell us how this proposal fits in with his Department’s plans for high-speed rail connectivity between cities in the midlands and the north?

[Chris Grayling]

Let me deal with the last point first. I think that we will need both. Creating a rapid link between our great cities is a necessary part of doing business domestically, and that will mean connectivity to airports as well. However, I think that the real benefit of expanding the runway is the linkage that results from the ability to fly, for example, from Edinburgh to Heathrow to Shanghai if a direct flight is not available. The local market will simply not be big enough for a regional airport to deliver the direct route.

As for the public service obligation process, we will introduce the strongest measures to ring-fence those slots. We will ensure that they cannot simply be taken away, and that should mean that they must be provided at a cost that is affordable for UK domestic aviation. If routes that are strategically necessary for the United Kingdom require PSO support financially, I have no doubt that this Government, and future Governments, will wish to ensure that those routes are provided for as well. We already apply that to some key routes.

[Damian Green (Ashford) (Con)]

I congratulate my right hon. Friend on pushing through a decision that probably should have been made 10 years ago. Does he agree that to gain both the economic and full environmental benefits of this decision a significant increase will be required in the rail links into Heathrow—not just the ones already planned, but some that are still some way off? Will he also expand on what he said in his statement about the new rail lines planned from different parts of the country so that people have proper public transport access to what will be a hugely expanding airport?

[Chris Grayling]

I absolutely agree with my right hon. Friend and thank him for his supportive comments. On the mix of rail services that will service this new runway, if Parliament gives it the go-ahead, in the short term there will be the arrival of Crossrail services and the upgrade of the Piccadilly line. The HS2 station at Old Oak Common will also open. In the investment plans for control period 6, we have planned funding to develop a western rail access into Heathrow for connections to Reading and the west country. We are in the process of discussing with private sector investors proposals for the southern rail access which will connect the south-western rail networks into Heathrow airport. In addition, we are beginning work on an option that is very relevant to you, Mr Speaker, which would take the Chiltern line into Old Oak Common—there is already a line that connects into Chiltern—and as we see more development on the Oxford-Cambridge corridor, that will provide an additional route into Heathrow from that important growth area. I think this is a pretty holistic package of planned rail improvements.

[Sir Vince Cable (Twickenham) (LD)]

How does the Secretary of State reconcile his claims about regional connectivity with the fact that Heathrow expansion is opposed by all the largest regional airports—Edinburgh, Manchester, Birmingham, East Midlands and Bristol—as well as those in the south-east, Stansted and Gatwick? Since these communities are represented by Members from different parties, does he agree that it would be appropriate to have a free vote on the NPS when it is put before Parliament?

[Chris Grayling]

It is clearly up to every individual party to decide how they will approach this vote, but my experience is not what the right hon. Gentleman has just communicated to me: my experience is that around the United Kingdom there is huge support from regional airports and, crucially, regional business groups for the expansion of Heathrow airport. We have looked at the projections, and they show growth at almost all of our regional airports, and I do not have the sense of opposition from the regional airports that the right hon. Gentleman is describing.

[Sir Roger Gale (North Thanet) (Con)]

I welcome my right hon. Friend’s statement, but, without wishing to compromise him in any decisions he may have to take in the future, I cannot help noticing that he has indicated very clearly that it will take some years for there to be wheels on tarmac and a new runway at Heathrow. In the interim, we have to make the best use of existing runway capacity, and, in that context, and post Brexit, I hope the Government will look favourably on maximising the use of available existing runways in Kent.

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[Chris Grayling]

I am well aware of my hon. Friend’s interest in these issues and look forward with interest to seeing any proposals that come forward.

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

How can the Secretary of State say that the cost of expansion will not fall on either taxpayers or airline passengers when the airport and airlines are not prepared to fund the essential transport infrastructure around Heathrow that is needed to address the air quality and appalling traffic congestion we already have, and when the Transport Committee report in March found that the environmental impacts on London and the south-east have not been fully monetised and need to be addressed?

[Chris Grayling]

As the hon. Lady will find when she reads the updated NPS document, that latter point is one of several recommendations from the Committee that we have addressed, and we have added additional information to the NPS.

On the hon. Lady’s comments about access to the airport, I have just given a firm commitment that we should deliver a package as broad as that to support this. One Select Committee recommendation was to strengthen the wording about western and southern rail access, and that has happened; we are very committed to both of those. This is a broad-ranging package that will transform surface access to Heathrow.

[Andrew Jones (Harrogate and Knaresborough) (Con)]

I welcome my right hon. Friend’s statement. Does he agree that as Heathrow is the UK’s hub airport and this expansion will bring forward new routes, improved connectivity to Heathrow will bring important benefits to the people and economy of Yorkshire and other parts of the northern powerhouse?

[Chris Grayling]

I completely agree with my hon. Friend. One of the disappointments recently has been a reduction in the number of flights from Leeds Bradford airport to Heathrow. Creating more capacity at Heathrow will create greater competition and allow new entrants to regional markets, and will allow some of the routes that have not been there in recent years to reappear.

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

It beggars belief that the words “climate change” did not pass the Secretary of State’s lips once during the statement. In his Department’s most recent aviation forecast there is no scenario in which expansion at Heathrow is compatible with meeting the Government’s own commitments under the Climate Change Act 2008 to limit air passenger growth to 60% by 2050. And those same projections imply that if this runway is approved aviation will take up over half of the UK’s entire carbon budget by 2050, which is absurd. Given that the Committee on Climate Change has said “Don’t use international offsetting,” can the Secretary of State explain how on earth this proposal is compatible with our climate change objectives?

[Chris Grayling]

As the hon. Lady will know, the Airports Commission looked at this issue very carefully and formed the view that we could meet our climate change objectives and expand Heathrow. Of course in the aviation sector there is a transformation of the technology that means aircraft are much more fuel-efficient and therefore emit less, so technology is helping us move towards achieving the right approach.

[Mr Dominic Grieve (Beaconsfield) (Con)]

I welcome my right hon. Friend’s statement, and many in my constituency will benefit economically and directly from this expansion and are supportive of it. Does my right hon. Friend recognise, however, that the issues around air quality, and indeed pollution generally, are not just confined to aircraft movements, but are also affected by the entire traffic management in the area around Heathrow? He will be aware that parts of my constituency, particularly Iver, are seriously blighted by the existence of Heathrow as it is at present, and if this development is to go ahead there will have to be the necessary infrastructure investment to alleviate that.

[Chris Grayling]

I absolutely agree with my right hon. and learned Friend. He will be aware that we have had a number of toings and froings over the months about whether it will be necessary to build a depot at Langley; that has now been resolved and that depot is not now happening, which will simplify the process of delivering western rail access, and I hope will ease many of the pressures. One of the factors that will have an impact in my right hon. and learned Friend’s constituency and the large number of people who travel to work at Heathrow is that western rail access will not only deliver better connectivity to the west country but will make it easier for staff to get the train to work.

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

It may be long overdue but this is the wrong decision, and it flies in the face of what the current Prime Minister has previously said, not to mention the last one with his “No ifs, no buts,” no third runway comment. So does this U-turn, like the abandoning of the feed-in tariff and like the embrace of Hinkley Point, show that this Government’s green dalliance and “hug a husky” phase is now well and truly over?

[Chris Grayling]

I gently say to the hon. Lady that I appreciate that this is a difficult decision for communities immediately around Heathrow and the Members who represent them. We cannot take a decision like this one without having an impact, and we will do everything we can to work with the airport to make sure that impact is minimised. The hon. Lady talks about previous commitments, and I simply remind her that we fought a general election last year on a manifesto commitment to pursue this process, and that is what we are doing.

[Sir Hugo Swire (East Devon) (Con)]

Having discussed this for almost a decade, it will be almost another decade before the first plane takes off from the new runway, so when the Secretary of State said that the time for action is now it was hardly an overstatement. He is right to claim that this will benefit regional airports such as Exeter in my constituency, Newquay, Bristol and others. I suggest, however, that rather than getting local authorities to come up with expansion plans, this should be the responsibility of the Government if they want a fully integrated aviation system. Also, while Heathrow and Gatwick will see certainly more regional flights using them as a hub, that will again raise the issue of air passenger duty, and I urge the Secretary of State to talk to the Chancellor of the Exchequer soon about taking this opportunity to revamp the whole APD issue.

[Chris Grayling]

I have no doubt that the Chancellor will have heard what my right hon. Friend has said about APD, and I am sure he will not be alone in making that point in the run-up to the next Budget.

On the planning process, we think it is better that decisions on smaller expansion projects—typically under 10 million passenger expansions—are taken locally in full light of the impacts on local communities, both positive in terms of the economic generation but also other impacts on communities around them. Where a project is bigger than that, we think we should continue to use the NPS process; we think that provides the right balance, ensuring that local decisions are taken about projects of an appropriate size, but that if a future project is on a much more substantial scale this House continues to play the part it does today.

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

I welcome this statement, and I support expansion at Heathrow; it is absolutely essential for the national interest and for international connectivity. This plan is supported by Liverpool’s John Lennon airport. How can the Secretary of State guarantee that the promised link between the expanded Heathrow airport and Liverpool will materialise?

[Chris Grayling]

First, I thank the hon. Lady for her clear statement of support. She has a distinguished record in this area. She and I served on the Transport Committee when we were first elected. She is a very experienced person in the transport world, and I am grateful to her for her support and for sharing my view of the strategic importance of this decision. On protecting the right of access, Heathrow has made a number of specific commitments. Ultimately, this will require airlines to be able and willing to fly those routes, but my view is that the opening up of Heathrow to new carriers—some of the low-cost carriers that have done well elsewhere and that dominate the other airports—will ensure that those routes happen. I will have to ensure that the slots are there for those carriers to fly to and that, in places where there is a social need but not an economic one, we continue to provide support through the public service obligation system.

[Zac Goldsmith (Richmond Park) (Con)]

The Secretary of State has already emphasised the preparedness of Heathrow, but the truth is that we do not know how the third runway can be reconciled with air pollution limits or with our climate change targets, as has already been mentioned. We do not know how many communities will be brought under the new flight paths and how many hundreds of thousands of people will be affected by that. We do not know how many tens of billions of pounds of public money will be needed to facilitate access to and from Heathrow, and we do not even know how Heathrow will finance this project. What we do know, following a dramatic revision by the Government of the benefits to the economy and to connectivity, is that Heathrow is now on a par with Gatwick. Can my right hon. Friend understand why, for so many people, this looks not only like a blank cheque being given by this Government to a foreign-owned multinational but like a whole book of cheques signed by our constituents?

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[Chris Grayling]

I very much respect my hon. Friend’s view on this. He and I have not shared the same view, but I very much respect the vigour with which he has argued his case, not just over the past few weeks but over a long period. On the economic value of Heathrow versus Gatwick, it has been shown—and as the documentation published today shows—that once we get past the 2060s, the economic case for Gatwick catches up with and overtakes the case for Heathrow. Between now and then, however, the economic case for expanding Heathrow is stronger. We have used the methodology that the Airports Commission chose to use, and it does not factor in the significant strategic importance of freight at Heathrow, which is not counted. Heathrow is the biggest port by value in the United Kingdom, and this element will also deliver a huge economic benefit for the UK.

[Mr Kevan Jones (North Durham) (Lab)]

I welcome today’s statement and support expansion at Heathrow. Newcastle international airport is vital for the north-east economy, and the Secretary of State has already mentioned the support in the regions for Heathrow expansion because of increased connectivity from airports such as Newcastle. May I kindly suggest that, before the vote, he publishes the exact details of how those slots can be maintained, because a lot of that regional support is conditional on getting those additional slots?

[Chris Grayling]

I am happy to provide any further information that hon. Members require, and I am grateful to the hon. Gentleman for his support today. As he will remember, when we first announced our provisional decision last year, I made my first visit to Newcastle airport. It is a very good airport, and the leadership there told me how this project would help them to develop their business and help the economy of the north-east. I will certainly look to provide extra information, but I would say that some of the detail will become clear further along the process. At the moment, the advice I have is that we are probably best to use the public service obligation requirements to guarantee that those slots are available. Of course, the airlines will have to be willing to fly them, but as I said a moment ago, in a more competitive market in which new entrants are able to compete—as they do all around the United Kingdom but not at Heathrow—we will see routes appear that should have been there a long time ago. They are not there now, but they will be in the future.

[Sir Paul Beresford (Mole Valley) (Con)]

I congratulate my right hon. Friend and completely support this decision, which has been a very long time coming. There will be efforts to try to delay the process, and he has mentioned the possibility of judicial reviews. What assurance can he give me that he and the Government will be absolutely behind this project, to overcome the hurdles and ensure that we meet the programme? The European airports are not going to wait, and we do not want to lose the opportunity that this will give us.

[Chris Grayling]

We have taken careful legal advice as we have been through this exhaustive process, and I want to pay tribute to my team at the Department for Transport for doing a fantastic job of assembling a vast amount of material for the House to study before the vote and to demonstrate the case that we are making today. If we are challenged in the courts, it is essential that we can demonstrate that we can make our case, but this is a matter for our elected Parliament. This House will decide whether I should designate the national policy statement, and I very much hope that that will carry weight as we go through the rest of the process.

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

Such a significant expansion in aviation capacity raises major environmental and ethical concerns, but given the recommendations of the Transport Committee, I believe that this is the right option, provided that it delivers for regional economic growth. Businesses and residents in Newcastle deserve just as much access to direct flights as those in the south, but given that network economics make that impossible, what additional capacity will the Secretary of State guarantee for Newcastle airport and for how long, regardless of how he makes that work?

[Chris Grayling]

The important thing to say is that the reservation of slots for our regional airports is not a time-limited thing; it is a permanent feature. We would not countenance putting in place a legal mechanism that could be eroded away over time. That is what has happened in recent times: regional connections to Heathrow have diminished in number, and regional routes have been replaced by long-haul routes, but I can give an absolutely categorical assurance to the House that the legal mechanism that will be put in place will prevent that from happening again.

[George Freeman (Mid Norfolk) (Con)]

I congratulate Ministers on finally making a tough decision that puts the national interest, prosperity and business confidence ahead of politics—an approach that I hope will apply in our other big decisions. I echo the views of the former Secretaries of State, my right hon. Friends the Members for Derbyshire Dales (Sir Patrick McLoughlin) and for Putney (Justine Greening), on the importance of cost control. Does the Secretary of State agree that the Heathrow hub proposal, which would extend over the M25 and be cheaper, quieter, quicker and less environmentally damaging, has much to commend it, both at Heathrow, where it was rejected by shareholders who perversely will make more money from a more expensive scheme, as well as at other airports around the country? Would he encourage such a proposal for other airports?

[Chris Grayling]

A lot of innovation went into the Heathrow hub proposal, and we considered it very carefully when we reached our initial recommendation. There were a number of drawbacks to it. For example, it would give much less respite for people around the airport by operating in the way that was proposed. However, I have no doubt that its promoters, who are smart people and who have developed some innovative ideas, will be using those ideas to encourage change in other places around the world and hopefully building an international business for themselves.

[Mike Gapes (Ilford South) (Lab/Co-op)]

At last! After years being wasted under the coalition Government, we now at last have a Government who are taking a grip on this issue. This decision should have been taken years ago. With Crossrail coming, my constituents in east London and people in Essex and Kent will greatly benefit from this decision, and I welcome it. Can the Secretary of State assure me, however, that there will be no further delays because of divisions in his Cabinet?

[Chris Grayling]

First, I thank the hon. Gentleman for that resounding statement of support. This matter was discussed at the Cabinet this morning. The Airports sub-Committee met earlier this morning and reached its view, and the Cabinet was informed of it. I can tell him that the Cabinet gave almost entirely universal support for it.

[Crispin Blunt (Reigate) (Con)]

I welcome my right hon. Friend’s statement, particularly his outlining of the five new rail lines that would support Heathrow’s expansion, but I contrast that with there being no proposals to support any new rail capacity at Gatwick. It is on the busiest commuter line in the country, and he is only too aware of the problems there today. The Opposition spokesman gave a masterclass in how to avoid making a decision if one is in that political position, but does my right hon. Friend agree that if we are to discharge our duty to future generations, having analysed and consulted on the proposal to death, now is the time to make a decision?

[Chris Grayling]

Now is definitely the time to take a decision. I agree that transport links to Gatwick need to improve, which is why Gatwick station is one of the projects that we are working on with the airport at the moment, but I am grateful for my hon. Friend’s support.

[Phil Wilson (Sedgefield) (Lab)]

The north-east is a global-facing region, and links to an international hub are critical for its economy. A third runway at Heathrow is a strategic necessity and essential to Durham Tees Valley airport, which is in my constituency, and Newcastle airport. The Secretary of State says that 15% of slots will be for domestic connections, but how can he guarantee that? Will domestic slots be ring-fenced? What are the implications for Durham Tees Valley airport?

[Chris Grayling]

Durham Tees Valley is one of the airports that Heathrow has identified as a potential beneficiary of the expansion, and I am clear that there will be legally binding mechanisms in place to reserve slots for regional airports. That is part of the core rationale for making this decision, and the project would have much less credibility without it, so I have every intention of ensuring that we deliver those protections for our regions.

[Mr Robert Goodwill (Scarborough and Whitby) (Con)]

Although not before time, this decision is great news not only for UK plc but for regional airports such as Leeds Bradford, which have too long been hampered by a lack of slots into our major hub airports, and for customers who have had to connect at airports such as Schiphol or Charles de Gaulle, which plays into the hands of our competitors. I read in the newspaper that there may be some barriers to the actual construction, so may I offer my services as someone with some experience of driving bulldozers?

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[Chris Grayling]

I will speak to Heathrow airport this afternoon and get someone to send my right hon. Friend a job application. However, whether the project will use some of the heavy equipment that he has at his disposal is a different question.

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

Past polling suggests that my constituents are, on balance, in principle in favour of Heathrow’s expansion due to the support that will be provided to small and medium-sized enterprises and the employment that is dependent on Heathrow. However, they are rightly concerned about noise, pollution, respite and night flights—the issues that have been discussed today—and confidence in Heathrow is not high, based on past performance. Flight paths are a significant issue, so will the Secretary of State ensure the publication of any proposals as soon as possible? That information should be available to Members before we vote. Will he also confirm that the criteria on which he will assess southern rail access will consider the regeneration benefits in addition to access from Surrey and from Waterloo?

[Chris Grayling]

On the last point, my view is that we just need to make the southern rail project happen. That is why we are looking to get the private sector to do it. It is a project that can be delivered by the private sector, and private consortia are interested in doing so. As for flight paths, it is necessary to work off the back of Heathrow’s initial design work to consider the requirements for them. That involves setting out the exact geography of our airports and then mapping what we need around them. That is the process, and a major reorganisation of our airspace will happen in the early 2020s. That would have had to happen anyway, and this proposal will bed into that.

[Mary Robinson (Cheadle) (Con)]

Manchester airport is a key transport hub, handling almost 28 million passengers a year and driving the economic progress of the northern powerhouse. How will my right hon. Friend ensure that the north feels the benefits of this announcement?

[Chris Grayling]

Manchester will be in an interesting position, because it will be connected with Heathrow by air and by high-speed rail. The linkage between the two airports will become a strong strategic benefit for the UK. I expect Manchester to have more flights to Heathrow, but I also expect more trains linking the two to provide a real interchange between Britain’s two most substantial airports.

[Richard Burden (Birmingham, Northfield) (Lab)]

Connecting the regions and nations of the UK to opportunities and markets abroad has to be about more than how much they can have routes through a national hub in the south-east—however important that national hub is. Does the Secretary of State agree that airports such as Birmingham, Manchester, Edinburgh and East Midlands for freight are international gateways in their own right, not simply regional airports as he described them? While every Minister to whom I have spoken about this has said that they want to support all the UK’s international gateways, few of them have said what they will actually do to make that a reality, to utilise existing capacity and to ensure that the potential of those airports grows in the time it will take, which could be a decade or more, to build the new runway—if indeed that goes ahead. What will the Secretary of State do about that?

[Chris Grayling]

We have a thriving aviation sector, and I am unsure whether regional airports need ministerial help to grow because they are doing a pretty good job already. Every time I visit a regional airport, I am surprised by the range of international destinations. Cardiff airport has recently launched a route to Qatar, and a whole variety of different European, transatlantic and other international routes have been developed at our regional airports. I expect that to continue, but the reality is that, apart from some of the most strategically important routes, there is often not enough of a market in a regional area to justify the launch of a route. The purpose of a hub airport is effectively to assemble a market to justify such routes and strengthen the whole UK.

[Mr David Jones (Clwyd West) (Con)]

I congratulate my right hon. Friend on his statement today. Given that Heathrow is the UK’s biggest port by value for exports outside the European Union, does he agree that its expansion will be crucial to British businesses all over the country in the post-Brexit world?

[Chris Grayling]

Absolutely. It is important that Heathrow is planning to source services, products and manufacturing from all around the UK. As the hon. Member for Kilmarnock and Loudoun (Alan Brown) said earlier, we want this project to create not just connections for the whole UK but opportunities for businesses around the country.

[Wera Hobhouse (Bath) (LD)]

Why is the Secretary of State so much in support of the unpopular expansion of Heathrow airports when airports such as Bristol are looking to expand, which would make much more environmental and economic sense to my constituents in Bath and to people across the south-west? As the hon. Member for Birmingham, Northfield (Richard Burden) pointed out, regional airports are international airports in their own right, so why the obsession with London airports?

[Chris Grayling]

This is not about one thing or the other. Bristol airport has done a fantastic job of building up an international network, serving more than 100 destinations, and it is a great airport and a great success story. However, that does not remove the need for a hub airport to deliver strategic connections that only really operate from a single centre, with a market assembled from several destinations within the UK and, indeed, internationally to make such routes viable.

[Henry Smith (Crawley) (Con)]

While I acknowledge the Heathrow runway expansion decision and welcome a decision finally being made, will the Secretary of State assure me that that will not detract from the necessary infrastructure investment at Gatwick airport, particularly, as my hon. Friend the Member for Reigate (Crispin Blunt) said, investing in upgrading the station and rail capacity into Gatwick?

[Chris Grayling]

My hon. Friend is right. Indeed, as he said yesterday, we have two important pieces of engineering work coming up that I hope will increase the reliability of that railway line, which has already seen a big increase in capacity. Gatwick station also needs to be addressed. The proposals that I have announced today about local decisions on smaller expansions will allow airports around the country to enter into dialogue with local authorities about their future without all such decisions being taken at a national level.

[Angela Smith (Penistone and Stocksbridge) (Lab)]

I welcome the Secretary of State’s statement. When the expansion proposal comes before the House in the next few days, I will support it not only because it is in the national interest but because Heathrow is committed to a robust UK supply chain built on four construction hubs throughout the country. Will the Secretary of State commit to supporting that supply chain in every way necessary to ensure that the jobs created by expansion benefit my constituents as well as constituents in the south-east?

[Chris Grayling]

Absolutely. One of the key benefits is that this multi-billion pound project will serve the entire United Kingdom. Both the airport plan and the supply chain that supports it will create thousands of jobs and thousands of new apprenticeships. The supply chain will be across the United Kingdom, and it will create jobs and opportunities, in the Year of Engineering, for a new generation of engineers.

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

As a member of the Transport Committee, I thank my right hon. Friend for accepting our recommendations. As the champion of the Oxford-Milton Keynes-Cambridge corridor, I am heartened by his proposal to link the Chiltern line into Heathrow. I urge him to bring forward those plans as soon as possible, because that connectivity will help to realise the Government’s wider ambitions for Britain’s brain belt.

[Chris Grayling]

I absolutely agree with my hon. Friend on that latter point. I am working with HS2 to make sure that provision is made in the development of Old Oak Common to put in those Chiltern line platforms. The Oxford-Cambridge corridor is crucial to the development of our economy. It will need connections into our premier hub, and this is the best way of achieving that.

[Andy Slaughter (Hammersmith) (Lab)]

This is not even a robust plan for London, and it damages and stunts regional airports. The Secretary of State has given no details about flight paths, and has no coherent plans for air quality, surface access, jobs or controlling public subsidy. He is well known for his reverse Midas touch but, on this issue, should he not listen to the right hon. Member for Putney (Justine Greening)? She said this morning that we need a UK-wide airport strategy, not this expensive and incompetent botch job.

[Chris Grayling]

I know that the hon. Gentleman has a particular view on this proposal, so I did not expect to find him supportive of it. We will work very hard to ensure that the areas affected by expansion are treated as decently as possible and supported by what will be a world-leading package of community support, which I hope will mitigate the impact of this project of national strategic importance.

[Julian Knight (Solihull) (Con)]

I support the statement and the Secretary of State’s careful, consultative approach. Birmingham airport, which is on the border of my constituency, currently runs well under capacity—by about 30% to 40%. Does he believe that this announcement will improve that situation over time, and if so, how?

[Chris Grayling]

There is capacity at a number of our regional airports, which continue to grow. Birmingham airport will continue to grow. If we expand Heathrow, there is no doubt Birmingham airport will face greater competitive pressure than many of our other airports, but that does not mean that it will cease to be a success story. Birmingham airport is already a great asset for the west midlands, and that will continue. It has attracted a number of important international routes in recent times, and I have no doubt that that will continue.

[Ian Austin (Dudley North) (Lab)]

For all the talk of balancing economic growth and boosting the regions, it is the same old story—the bulk of investment, spending, jobs and benefits is always in London and the south-east. Why could the Government not show a bit more imagination by expanding Birmingham airport and getting behind the regions? Birmingham airport is actually the best connected airport in the country. It is on the motorway network and, if HS2 were taken to Heathrow, it would be quicker for passengers to get from Heathrow to Birmingham than it now is for them to get from Paddington to Heathrow. That would mean that we in the midlands would get our fair share of the jobs, the investment and the benefits.

[Chris Grayling]

I make it clear that I expect there to be benefits and jobs all around the country, including in the west midlands. Birmingham airport is a very good airport. I have no doubt that it will continue to attract passengers and routes, and to be a success story for the west midlands—that is the way it should be. There are particular reasons why the United Kingdom needs to build on its principal strategic airport hub, but that will not prevent other airports from growing. The measures I have announced today will enable those airports to do so.

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

I warmly welcome the Secretary of State’s announcement of the long-overdue decision to expand our national hub airport in the national interest. I assure him that this announcement will be warmly welcomed across the south-west, particularly in Cornwall.

I thank the Secretary of State for his specific reference to Newquay airport and for his commitment to ensuring that slots are available for regional airports. In that vein, does he agree that a direct link from Newquay to Heathrow would offer huge opportunities for greater exports from Cornwall and for inward investment into Cornwall? I ask for his support to ensure we can achieve that.

[Chris Grayling]

Newquay is one of the principal future beneficiaries of expansion. There is a real opportunity to increase air links to a part of the country that is quite distant in existing transport terms. I am strongly of the view, as is my hon. Friend, that Newquay has the potential to flourish with Heathrow expansion, and I will happily work with him to do everything we can to make sure that happens.

[Mr Gavin Shuker (Luton South) (Lab/Co-op)]

The project will likely span multiple Parliaments, and certainly successive Administrations, so does the Secretary of State agree that it would be frankly incredible for a party of government not to have a clear position on this proposal when it comes to be voted on in Parliament? Will he therefore confirm the whipping arrangements for his own party? Can he suggest any mechanisms that might allow some individuals to take a different view while maintaining collective responsibility?

[Chris Grayling]

It is for each party to decide its own whipping arrangements—I have no doubt that is what will happen. On the timetable, I expect to reach the completion of the DCO process late in this Parliament. I hope we can get going on building this runway in the early 2020s, if the House gives its consent over the next couple of weeks. I hope all parties that aspire to govern this country in the post-Brexit world will unite behind a proposal of vital strategic importance.

[Mr Laurence Robertson (Tewkesbury) (Con)]

I congratulate the Secretary of State on at last moving this issue forward. Does he agree that the delays, which have been caused by successive Governments, have caused the UK to lose a lot of business? For example, Dublin is already getting on with expanding its airport. I know that there are restrictions and difficulties, but may I ask him—so that this country does not continue to lose air business—to move this issue on as quickly as possible?

[Chris Grayling]

I give my hon. Friend that assurance. Like many other Members, my view is that this decision should have been taken a long time ago. At least we are taking it now, and I want to get on with the job.

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

Transport for London has estimated that it will cost some £20 billion to link the third runway to London. Will the Department be designating that as UK spend or as England-only spend? If the Secretary of State cannot answer that question now, will he make sure that the Government officially outline their position before we are expected to vote?

[Chris Grayling]

As I have said before, I do not recognise that figure. We have a well-designed plan to deliver the transformation of surface access to Heathrow—some privately funded and some already in the investment pipeline—such as on Crossrail and HS2, all of which is reflected in the settlements that exist across the United Kingdom for capital spending.

[Ben Bradley (Mansfield) (Con)]

I welcome my right hon. Friend’s statement. Does he agree that the chance to promote skills in construction and engineering out in the regions, particularly at the manufacturing hub near my Mansfield constituency, is a massive chance both to provide the kinds of high-quality jobs for which my constituents are crying out and to raise aspiration and social mobility in such areas across England?

--- Later in debate ---

[Chris Grayling]

My hon. Friend is absolutely right. This is the Year of Engineering, and projects such as the expansion of Heathrow and HS2 have the ability to provide opportunity and excitement for the new generation of engineers that we will need if we are to have a successful economy. This project is much more than a transport project; it is about the development of skills and job opportunities for the whole United Kingdom.

[Marsha De Cordova (Battersea) (Lab)]

Londoners, especially those such as my constituents who live under Heathrow flight paths, already face unacceptable levels of air pollution and noise pollution, not to mention the grave risks we all face from climate change. Why does the Secretary of State think that noise pollution, air pollution and climate change are not important enough issues to influence Government policy?

[Chris Grayling]

We have carefully considered issues such as noise, air quality and climate change, which was why we commissioned the Airports Commission to do its detailed work, and why we have updated that work so that the House has all the information it needs. Of course, the other thing we have to take into account is the potential for our economy, which is why I am grateful—perhaps unusually—to the Unite trade union and Len McCluskey, whom the hon. Lady knows well, who this morning again expressed his support for the project.

[John Howell (Henley) (Con)]

The airspace review is a crucial part of the success of this project. Together they can help to limit stacking, so will the Secretary of State say something about how these reviews dovetail?

[Chris Grayling]

The CAA and NATS have already started work on airspace changes and the consultation on them. This is vital because it can have two big effects. First, it makes the future management of our airspace possible. At the moment, airspace is extremely congested, with conflicts between airports, and we need to modernise and to use new technology. Secondly, it enables a change to the management of aircraft as they come into the UK’s airspace in a way that can substantially affect stacking, which is also a huge benefit. The proposal of the third runway does not change the need for reform; it simply adapts that reform to fit the more detailed design as it emerges.

[Stephen Timms (East Ham) (Lab)]

I welcome the Secretary of State’s decision. He referred to local employment and apprenticeships in his statement. What is his Department’s assessment of the increase in employment at Heathrow, both during the construction phase and in the long term?

[Chris Grayling]

The estimates fluctuate somewhat but, in essence, we are talking about the number of additional jobs created being in the high tens of thousands. Obviously this depends on how we measure and estimate them, as well as on the rate of expansion of the airport, but about 100,000 extra jobs should be created.

[Justin Tomlinson (North Swindon) (Con)]

There is strong support for the proposal from Swindon businesses and residents, particularly hard-working families looking to book holidays. May I also stress the importance of the western rail link, as it would give my constituents direct access to Heathrow in less than one hour?

[Chris Grayling]

My hon. Friend is right about the importance of the proposal in terms of not only connections to places such as Swindon, Bristol, the south-west and south Wales but, as I said earlier, providing better opportunities for staff who live more locally to get to work on the train. I absolutely accept the importance of the project. It is part of our investment plans for the next control period on the railways, and my expectation is that it will be open in good time for the runway.

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

The Secretary of State will know from my questions in the Transport Committee that I wanted his Department and Heathrow to do much more about getting people to the airport by public transport in a two-runway world, let alone in a three-runway world. We need to see the money, not just hear the soundbites, so will he assure us that western rail access is now fully funded? How much of the funding will be contributed by Heathrow?

[Chris Grayling]

As far as I am concerned, that is fully funded, and we intend to extract as much money as possible from Heathrow for all the improvements—it needs to make a substantial contribution to this, but the project will be delivered.

[Jeremy Quin (Horsham) (Con)]

May I warmly welcome this comprehensive statement? I wish to pick up on a point that my right hon. Friend made about freight transportation, because I believe that was omitted from the otherwise excellent Davies commission. Will he confirm that, and will he also confirm that adding in freight transport significantly increases the economic value of Heathrow?

[Chris Grayling]

Yes, I was surprised that that was not taken into account, but the Davies commission did not seek to monetise the freight potential of an expanded Heathrow and factor that into its findings. We have carefully followed the same methodology as it used, because we judged it to be wrong to change methodology mid-stream, but the numbers do not include freight. Heathrow is our biggest freight airport by value—it is our biggest freight port by value. It is central to the economy of many parts of the UK, ranging from the north of Scotland, from where smoked salmon products are shipped internationally via Heathrow, to more local businesses in the London area. My hon. Friend is absolutely right to say that freight is a crucial part of this decision.

[Kevin Foster (Torbay) (Con)]

I warmly welcome the statement. Let me be clear that expanding Heathrow is about not just London, but Torbay—it is about businesses getting out to markets, and seafood being shipped out to China every day through this port. Will my right hon. Friend reassure me that we will now get on with this and very quickly have the vote on the Floor of this House so that we show just what support the plan has?

--- Later in debate ---

[Chris Grayling]

The answer to that is most definitely yes. As a result of the statutory process, we have to get on with the vote—it will happen shortly. Clearly the business managers will announce the detailed dates of the business, but I want to get on with this as well.

[Andrew Bowie (West Aberdeenshire and Kincardine) (Con)]

On behalf of the businesses and people of the north-east of Scotland, I thank the Secretary of State for his announcement. Sectors including UK oil and gas, as well as economic growth in my part of the world, are reliant on numerous slots to the south-east and beyond, so I thank him. To put this beyond any doubt, will he confirm that the decision will mean a growth in connectivity for Scotland, and for Aberdeen in particular?

[Chris Grayling]

Absolutely. Aberdeen and the oil industry are clearly one potential beneficiary from all this. The oil industry is to be found in disparate parts of the world, and we have enormous expertise in Aberdeen. The routes that people in the oil industry need to take would not automatically be served by a regional airport, which is why a better hub airport with more international connections is a particular benefit to industries such as his in Aberdeen.

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

rose—

--- Later in debate ---

[Huw Merriman]

Thank you, Mr Speaker. It is a pleasure to get through your stacking system ahead of Air Corby.

I thank the Secretary of State because, as a member of the Transport Committee, it is a delight for me to see the Committee, across party, collaborating with the Government—I think that this is the best of it. Our recommendation 22 dealt with the Lakeside Energy from Waste plant. Will he confirm that there is still a commercial opportunity for a more up-to-date waste management capability to be purchased? That is the only recommendation that has not been followed by the Government.

[Chris Grayling]

I had a lot of sympathy with what the Select Committee was saying, but we did not accept that recommendation because the plant is not an asset categorised as strategically important for the UK. Clearly discussions are already taking place between the airport and the owners about what should happen to that plant. Had it been of strategic importance, we would absolutely have accepted the Committee’s recommendation, but the truth is that it is not, so this really is a matter for the different organisations involved.

[Tom Pursglove]

It is always good to get through at last call, Mr Speaker.

What difference does my right hon. Friend think this decision will make to our international trading prospects and to UK steel supply chains? Let me also tell him that in Corby we certainly want one of these new construction hubs.

[Chris Grayling]

I suspect there will be quite a lot of competition for those hubs. I have no doubt that Corby will do a great job in attracting business as a result of this project. Its particular importance relates to the events of the past few years. We will shortly be entering the post-Brexit world. If this country is to demonstrate that we will remain an outward and internationally focused trading nation, such a project will be of vital strategic importance to us. Whatever anyone’s view might be about the Brexit process, I hope that all Members will accept that we are much better off demonstrating to the world that we want to be connected, involved and trading post Brexit. As a result, I hope that people across the House will get behind the proposal to make sure that it is carried, when it comes to a vote, and that we send a powerful message to the world that Britain is in business.

[Justine Greening]

On a point of order, Mr Speaker.

--- Later in debate ---

[Mr Speaker]

My advice in the first instance is to see, here and now, whether the Secretary of State can provide any illumination on that matter. Depending on what he says, I might have further advice for the right hon. Lady.

[Chris Grayling]

Further to that point of order, Mr Speaker. The formal process in statute is that the vote has to take place within 21 sitting days of my tabling the NPS. That took place this morning, so the vote has to take place within 21 sitting days of now. The exact date will be a matter for the business managers, but we will want to ensure that Members have sufficient time to look at the material tabled today. As for written questions, I will make sure that my Department expedites responses to issues raised by Members so that they can study them in good time before the vote.

[Mr Speaker]

I am grateful to the Secretary of State for that response to the point of order raised by the right hon. Member for Putney (Justine Greening). Flowing from it, my perhaps unsurprising advice to her is that she should press ahead with her tabling of questions with dispatch. In the light of the commitment that the Secretary of State has given, it is to be expected that colleagues interested in this matter, and the Chair, will keenly attend to the speed and comprehensiveness with which ministerial replies to those, in effect, urgent questions are provided.

Rail Timetabling

Chris Grayling Excerpts

Monday 4th June 2018 Commons Chamber

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

I am pleased to take the earliest opportunity to update the House on the recent difficulties around the timetable changes, in particular on some GTR and Northern routes.

I want to be absolutely clear: passengers on these franchises are facing totally unsatisfactory levels of service. It is my and my Department’s No. 1 priority to make sure that the industry restores reliability for passengers to an acceptable level as soon as possible. I assure the passengers affected that I share their frustration about what has happened, and that I am sorry that this has taken place.

The timetable change was intended to deliver the benefits to passengers of major investments in the rail network, meaning new trains, including all trains on the Northern and TransPennine Express networks, being either new or refurbished; the great north rail project infrastructure upgrades worth well over £1 billion, such as those at the Ordsall Chord and Liverpool Lime Street; and in the south-east, through the Thameslink programme, new trains and improved stations, including London Bridge and Blackfriars.

The huge growth in passenger numbers in recent years demanded expanded routes, services and extra seats, but this timetable change has resulted instead in unacceptable disruption for the passengers who rely on these services. The most important thing right now is to get things back to a position of stability for those passengers, but it is also vital to understand what has happened and why we are in the situation we are in today. The circumstances of the failures are different on the Northern and GTR networks.

The investigations that are being carried out right now are providing more information about what has gone wrong, but it is worth being clear that the industry remained of the view until the last moment that it would be able to deliver the changes. That is the bit that everyone will find hard to understand and it is why there has to be a proper investigation into what has taken place.

On Northern, which is co-managed through the Rail North Partnership by Transport for the North and my Department, early analysis shows that the key issue was that Network Rail did not deliver infrastructure upgrades in time, in particular the Bolton electrification scheme, with damaging consequences. This forced plans to be changed at a very late stage, requiring a complete overhaul of logistics and crew planning. The early analysis also shows that on GTR’s Thameslink and Great Northern routes, the industry timetable developed by Network Rail was very late to be finalised. That meant that train operators did not have enough time to plan crew schedules or complete crew training, affecting a range of other complex issues that impact on the service on what is already a highly congested network.

It is also clear to me that both Northern and GTR were not sufficiently prepared to manage a timetable change of this scale. GTR did not have enough drivers with the route knowledge required to operate the new timetable. Neither Northern nor GTR had a clear fall-back plan.

In GTR’s case, the process of introducing the new timetable has been overseen for the past two years by an industry readiness board, comprising some of the most senior people in the industry, which told me it had been given no information to suggest the new timetable should not be implemented as planned, albeit with some likely early issues as it bedded down. This body was set up specifically to ensure that all parts of the rail network—Network Rail, GTR, other train operators—were ready to implement these major timetable changes. It should have been clear to it that some key parties were not ready. It did not raise this risk.

The Department received advice from the Thameslink readiness board that, while there were challenges delivering the May 2018 timetable—namely, the logistics of moving fleet and staff—a three-week transition period would allow for minimal disruption. My officials were assured that the other mitigations in place were sufficient and reasonable. Indeed, as few as three weeks before the timetable was to be implemented, GTR itself assured me personally that it was ready to implement the changes. Clearly this was wrong, and that is totally unacceptable.

The rail industry has collectively failed to deliver for the passengers it serves. It is right that the industry has apologised for the situation we are currently in and that we learn the lessons for the future, but right now the focus should be on restoring the reliability of its service to passengers. This morning, I met again with chief executives of Network Rail, GTR and Northern—the latest in a series of meetings that I and my Department have been holding with these organisations—and the rail Minister has today been to Network Rail’s control centre at its Milton Keynes headquarters. We have made it clear to them all that the current services are still not good enough. I have also demanded that Network Rail and the train operator work more collaboratively across the industry to resolve the situation, where necessary by using resources from other train operators to support the recovery effort. Officials in my Department are working around the clock to oversee this process. We have strengthened resources in both the Department and Rail North Partnership, which oversees the Northern franchise, to hold the industry to account for improving services.

I would like to be able to tell the House that there is an easy solution or that the Department could simply step in and make the problems passengers are facing go away—if there were a way of doing so, I would do it without a moment’s hesitation—but ultimately the solution can only be delivered by the rail industry. These problems can only be fixed by Network Rail and the train operators methodically working through the timetable and re-planning train paths and driver resourcing to deliver a more reliable service. It is for such reasons that I am committed to unifying the operations of track and trains, where appropriate, to ensure that we do not encounter such problems in the future.

Northern Rail has agreed an action plan with Rail North Partnership that is focused on improving driver rostering so as to get more trains running as quickly as possible; rapidly increasing driver training on new routes; providing for additional contingency drivers and management presence at key locations in Manchester; and putting extra peak services into the timetable along the Bolton corridor. Work on this action plan has been under way for some time. They have also published temporary timetables that will be more deliverable and will give passengers much more confidence in the reliability of their service. This will mean removing certain services from the new expanded timetable while still ensuring an improvement in the total number of services run by Northern compared with before the timetable change. Alternative arrangements will be made for passengers negatively impacted by the changes. I believe that this temporary measure is necessary to stabilise the service and enable improvements to be introduced gradually.

On GTR, there are more services running on a day-to-day basis today than before the timetable change, while Southern and Gatwick Express services are performing well on some routes but not all. GTR is not currently able, however, to deliver all planned services on Thameslink and Great Northern routes. In order to give passengers more confidence, it is removing services in advance from its timetable rather than on the day and reducing weekend services to pre-May levels. These measures will be in place until a full re-planning of driver resourcing has been completed.

I would like to make it clear that, while I expect to see stable timetables restored on both networks in the coming days, I expect the full May timetable and all the extra trains to be introduced in stages over the coming months to ensure it can be delivered properly this time. Once the full service is operating on GTR, 24 Thameslink trains will run through central London every hour, and by next year, 80 more stations will have direct services to central London stations such as Farringdon, City Thameslink and Blackfriars. There will also be 115 new trains and more than 1,000 new carriages providing faster, more frequent and more reliable journeys for passengers.

On Northern, the great north rail project, an investment of well over £1 billion in the region’s rail network, will enable by 2020 faster and more comfortable journeys as well as new direct services across the north and beyond. By 2020, the train operators, Northern and TransPennine Express, will deliver room for 40,000 extra passengers, and more than 2,000 extra services a week.

That, however, is the future. What matters now is restoring a stable service for passengers today. I completely understand their anger about the level of disruption that the timetable change has caused in recent weeks. There must, of course, be a special compensation scheme for passengers on affected routes on both GTR and Northern. In the case of Northern, the scheme will be subject to agreement with the board of Transport for the North, although I doubt that the board will have a problem with it. The purpose of the scheme, which will be introduced and funded by the industry, will be to ensure that regular rail customers receive appropriate redress for the disruption that they have experienced. The industry will set out more details of the eligibility requirements, and of how season ticket holders can claim, but I think it is very important for passengers—particularly in the north, where disruption has been protracted—to be given entitlements similar to those conferred by last year’s Southern passenger compensation scheme. Commuters in the north are as important as commuters in the south, and they should receive comparable support.

It is clear to me that, aside from Network Rail’s late finalisation of the timetable, GTR and Northern were not sufficiently prepared to manage a timetable change of this scale, so today I am also announcing that work has begun to set up an inquiry into the May timetable implementation. It will be carried out by the independent Office of Rail and Road, and chaired by Professor Stephen Glaister. It is necessary to have a full inquiry, and Professor Glaister will lead one. The inquiry will consider why the system as a whole failed to produce and implement an effective timetable. Its findings will be shared as early as possible with me and with the rail industry, so that lessons can be learnt in advance of future major timetable changes. The final report will be published by the Office of Rail Regulation by the end of the year, but I want to see initial responses much sooner than that.

In parallel with the inquiry, my Department will assess whether GTR and Northern met their contractual obligations in the planning and delivery of the timetable change. It will consider whether the issues could have been reasonably foreseen and different action taken to prevent the high levels of disruption that passengers are experiencing.

In GTR’s case, the assessment will cover whether the operator had sufficient resources and skills to deliver the new timetable and whether drivers could have been trained in a faster and more effective way, and will examine the contingency and risk management arrangements currently in place. If it is found that GTR is materially in breach of its contractual obligations, I will take appropriate enforcement action against it. That will include using the full force of the franchise agreement and my powers under the Railways Act 2005, and consideration of how such a failure affects GTR’s eligibility to hold a franchise bidding passport. In the case of Northern, my Department will assess the operator’s planning, risk assessment and resilience in preparing for the May timetable change. Bearing in mind Network Rail’s failure to deliver infrastructure on time, we will hold the operator to the terms of its contractual obligations.

I will not be afraid to take enforcement action when it is necessary, but it is right to go through the process of the inquiry and to understand where fault truly lies. I will not hold back from taking appropriate action if the review finds that there has been negligent behaviour.

Given the importance that Members throughout the House ascribe to these issues, I have arranged for both Northern and GTR to come to the House this week to discuss with colleagues any specific issues that they wish to raise with the operators. I am also meeting Members on both sides of the House today to discuss the issues with them. I am incredibly frustrated that what should have been an improvement in services for passengers has turned into significant disruption, and I am sorry about the levels of disruption that passengers are experiencing. I am also sorry for the staff members who have been caught at the sharp end of these changes.

There clearly have been major failures that have led to the situation that we are in today. I am clear about the fact that the industry must and will be held to account for this, but my immediate priority is to ensure that we improve train services to an acceptable level as quickly as possible, and that will remain my priority.

[Andy McDonald (Middlesbrough) (Lab)]

I am grateful for advance sight of the Secretary of State’s statement—for once. Here we go again, with yet another chapter in the never-ending story of our troubled railways. Not only have train timetables been turned upside down, but the Transport Secretary seems to have run into his own timetabling problems in meetings with Members today.

It is said that Henry Kissinger once asked who he should call if he wanted to speak to Europe. The answer was not clear. Similarly, I would ask who I should call if I want to speak to the UK rail industry. Therein lies the heart of today’s problem and the whole rail debate more generally: no one will take responsibility for Great Britain’s rail industry. But, amid all the clamour, recriminations and buck-passing that characterise discussions about rail there is one person who is ultimately responsible: the Secretary of State for Transport, the right hon. Member for Epsom and Ewell (Chris Grayling). But he blames Network Rail for the timetabling failures. Yes, Network Rail has not delivered, but he seems to forget that, as a company limited by guarantee, Network Rail has one member: the Secretary of State for Transport—him. He is the man in charge—allegedly. The right hon. Gentleman might want to blame Network Rail, but it is he who has failed in his responsibility to oversee it; the buck stops with him. What is more, the right hon. Gentleman has burnt his bridges with the leadership of Network Rail, which can only have damaged his oversight of this process. Is not this a terrible failure of him and his role atop the system?

The Northern Rail and Thameslink contracts were awarded by the right hon. Gentleman’s Department to private operators. It is the job of his Department to ensure that the companies fulfil their contracts. Arriva and GTR have had years to prepare for these timetable changes; neither have trained enough drivers to deliver the timetable changes, yet the Department has failed to hold the companies to account. Can the right hon. Gentleman confirm that it is within the franchise agreement for Arriva to report directly to him on progress in recruiting and training drivers? Does not the buck, once again, stop with him?

GTR even had its own readiness board to implement the timetable changes, except that it was not ready; we could not make this up. Chris Gibb’s report on Southern exactly a year ago highlighted the issue of driver numbers as a major operational issue within rail. Why did the Secretary of State not take the report as an alert to review the availability of the train drivers who were needed across the country and do something about it? He says the Office of Rail Regulation will report on the failings by the end of the year, but, with the new timetable due in December, this will be too late. What confidence can we have that it will not be another shambles? Is not the reality that this Secretary of State has been asleep at the wheel and this is just the latest episode in a series of rail management failures on his watch?

The right hon. Gentleman is determined to cling on to the micromanagement of the railway when it suits him, but he will quickly point the finger of blame when things go wrong. He cannot have it both ways. The Secretary of State says he is sorry for the disruption passengers are facing. That is not good enough; he should apologise to passengers for his failures that have put their jobs at risks and played havoc with their family life.

The travelling public and the rail industry have no faith in this Transport Secretary to fix this situation. Were the Prime Minister not so enfeebled, she would sack him. If he had any concept of responsibility, he would resign. The Transport Secretary should do the right thing and step aside.

[Chris Grayling]

I was rather expecting the hon. Gentleman to say that, and I respond simply by saying that it is my job to make sure that the problem is fixed, and that is what I intend to do. But the Opposition cannot have it both ways: half the time the hon. Gentleman is saying to me that the Government should run the railways, but when something goes wrong he says that it is the Government’s fault that we are not running the railways properly. They cannot have it both ways.

There are two specific points. On what we are going to do about the timetable in December, I have been very clear in the letter I sent to all colleagues last week that we are not going to do a major change of this kind again in the way that has happened in the last couple of months; it must be done in a more measured and careful way. We are already doing work now on how that timetable change should happen—how it should be modified—and the incoming chief executive of Network Rail, Andrew Haines, who I think will bring enormous experience to this, is the person who was responsible 10 years ago for the very successful timetable change on South Western. I have great confidence that as he comes into the organisation in the coming months, he will be able to put in place a plan for timetable change both at the end of this year and in the future that works better for passengers, who are the most important people in all of this.

The hon. Gentleman also asked me why we did not pay more attention to Chris Gibb’s report last year. Actually, we did. We appointed Chris Gibb chairman of the industry readiness board. Chris is one of the most experienced and respected figures in the rail industry, but that board still did not gather the scale of the problem that lay ahead when it last reported to me in May. Lessons have to be learned by the people on that board. We have to make sure that this cannot happen again, and everyone in the rail industry—and everyone in my Department, including me—is working to ensure that that happens.

[Sir Peter Bottomley (Worthing West) (Con)]

Our constituents who are passengers, and our constituents who work on the railways, want to get this solved, and the best thing to do is to give backing to those in the industry and to the Secretary of State to ensure that that happens.

Anticipating an article by Nigel Harris in Rail magazine, I would suggest that those who have power need to be accountable and those who are accountable need to have power.

Anyone who has no expertise should take advice from those who can make things better. That requires getting everyone—unions, managers and knowledgeable passengers —together to see how best we can get out of the hole we are in at the moment.

It is too bad, and it has been too bad for too long.

[Chris Grayling]

I completely agree with my hon. Friend; I think that the railways are going to have to change significantly as a result of what has happened. However, I say to those who are saying that we should sack the franchisees that simply sacking the people who are working today will not solve the problem, because I do not have some other group of people down the corridor who are able to take over. We have to make sure that everyone has all the necessary support from across the industry to deliver solutions for passengers and get back to stability as quickly as possible. I absolutely accept what my hon. Friend says.

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

Another week, another rail shambles. When will the Secretary of State admit that the rail franchise system is broken and do something to fix it properly? It was really disappointing to hear that travellers who were forced to get rail replacement buses at short notice were sometimes turned away because the buses were full or simply did not turn up. That is even more ironic considering that Arriva also operates overlapping bus groups. That just highlights the farce that is going on at the moment.

We know that late-running Network Rail projects reduced the time available for train operators to plan the new schedules, but what assessment has the Secretary of State made of his Department’s culpability in this, with regard to Network Rail? Despite assurances that all was well, it is now clear that there was no possibility of the timetables being capable of being operated in full from day one. Why did no one in the train operating companies, Network Rail or the Department for Transport ask for a postponement of the new timetable roll-out?

The Secretary of State has said that he will take the strongest enforcement action against GTR if it has broken its franchise agreement. Will that action be stronger than that taken against Virgin Trains East Coast, which has been allowed to walk away owing the Department for Transport billions of pounds?

What is the Secretary of State’s exact timeframe for resolving these timetable issues? He has mentioned putting in additional resources. What additional resources will be put in from his Department? What is he doing to ensure that the driver shortage is not met by poaching drivers from other franchises, which could have an impact on services elsewhere? On the question of compensation, what will he do to ensure that the rail industry does not recover the costs of compensation from other fare-paying passengers?

The Secretary of State continually highlights Network Rail failings, but when will he accept that he has responsibility and culpability for Network Rail and fall on his own sword? An apology is not good enough.

[Chris Grayling]

As I have said, the key issue now is to sort out the problems. The hon. Gentleman asked about failings in my Department and elsewhere. I have asked Stephen Glaister to look at everything that has happened and to report back publicly so that we can know exactly what has gone wrong and particularly so that we can ensure that it cannot happen again. The hon. Gentleman asked about resources. My Department is deploying extra people on this, as is the industry. For example, GTR has borrowed drivers from freight operators to try to deal with some of the shortages on its rosters. On the question of compensation costs, my view is that they should be paid by the people who are responsible.

[Theresa Villiers (Chipping Barnet) (Con)]

GTR has told me that these delays are going to carry on until mid-July. Does the Secretary of State agree that that is utterly unacceptable? Will he ensure that Network Rail and GTR fix these problems in a matter of days, not weeks?

[Chris Grayling]

I share my right hon. Friend’s frustration. The most important thing is to end the situation in which we have mass cancellations and people cannot plan their journeys. The important thing now is to reintroduce the services that were supposed to be part of the May timetable step by step, so that we do not end up having the same problem all over again. First, we have to ensure that we have a dependable service that people know will be there when they turn up. Secondly, we need to move back, in a responsible, phased way, to the expanded timetable with the thousands of new trains that should have been there on 20 May.

[Lilian Greenwood (Nottingham South) (Lab)]

Train operators and Network Rail have undoubtedly failed dismally, but the Department for Transport signed off GTR’s unworkable timetable proposals in the face of Network Rail opposition, delayed the decision to agree a phased introduction of the new Thameslink timetable, rejected Chris Gibb’s recommendation of a longer eight-phase implementation, required a reduction in spending on train planning by 2019 despite the biggest timetable change in more than a decade, and failed to spot that driver shortages and training needs would undermine the main timetable. Why has the Secretary of State, both in his letter to MPs and again today, failed to take any responsibility for his Department’s role in the shambles endured by passengers up and down the country?

[Chris Grayling]

I fully expect Stephen Glaister’s review to look at all the players in this, including my Department. The industry readiness board set up by my Department to assess the process of introducing the new Thameslink timetable recommended in May that the timetable could go ahead. When experts are called in for advice and they advise us to do something it is generally a good idea to listen to them.

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

At Letchworth station this morning, I spoke to passengers who have suffered great delays and many cancellations, children going to school whose train had been cancelled—one of them in tears—and workers who have been told, “You can’t keep on being late like this.” Is it not time that Govia Thameslink Railway actually produced the timetable, the service and the reliability of information that those people—my constituents—deserve? What is going to be done to encourage it to get on with this and provide that service quickly?

[Chris Grayling]

The No. 1 priority is to restore a reliable timetable, and I have been clear that GTR has an urgent duty to do so. There is unquestionably a large question mark over its future, but it needs to sort the problem out as quickly as possible to have any chance of surviving in the rail industry.

[Mr Gavin Shuker (Luton South) (Lab/Co-op)]

I have been in this House for the best part of a decade and I have never seen such a complacent performance from a Secretary of State at the Dispatch Box. He needs to understand that he is in deep trouble over this. The situation will go on for months and months, and the underlying issues behind the timetable changes and why they have gone wrong land squarely with his Department. Does he agree that his unwillingness to accept any responsibility undermines his efforts to put things right?

[Chris Grayling]

This is simply about everyone in the industry and my Department working to ensure that we have a stable timetable for passengers. That is the most important priority right now.

[Sir Michael Fallon (Sevenoaks) (Con)]

Is my right hon. Friend aware that two villages in my constituency, Eynsford and Shoreham, are now virtually cut off? Commuters cannot get up to London, and their children cannot get down to school in Sevenoaks. Will he use the authority of his office to persuade Southeastern to stop at least one or two of its peak-hour fast services during the current disruption to give those two villages a chance of normal life?

[Chris Grayling]

Absolutely. I have already asked my office to action work to try to find a rapid solution to the problems at those two stations.

[Tim Farron (Westmorland and Lonsdale) (LD)]

The Secretary of State knows that every single train on the Lakes line is to be cancelled over the next two weeks, and at least 11 trains have been cancelled on the Furness line so far today. He is clearly not immediately planning to remove the franchise from either line, as he should, and he mentioned neither in his statement. Will he clarify now that, if Arriva Northern asks for an extension to this outrageous two-week suspension, he will refuse such a request? Will he also commit to funding an ambitious marketing campaign to relaunch the lines and boost our local economy in the light of the colossal reputational damage that they are now suffering?

[Chris Grayling]

I discussed that very issue with members of Rail North’s board last week. I am profoundly unhappy about this. I have indicated to Arriva that I am not prepared to accept more than the current two weeks and that it should use that two-week period to do engineering work, which will be necessary over the coming months, so that we are not wasting time when a bus service is in place. I have been clear to Arriva that doing this over the long term is simply unacceptable and that it has to get the trains back very quickly.

[Sir Nicholas Soames (Mid Sussex) (Con)]

I make a respectful suggestion to my right hon. Friend, which is that the rail industry readiness board should be taken quietly outside and disposed of. Is he aware that the rail service to East Grinstead, in which he has always taken an interest, has finally fallen over completely, that trains from Haywards Heath, Wivelsfield and Burgess Hill are shorter and more overcrowded, that people’s private lives are being destroyed and that this whole thing is an absolute disaster that must be put right?

[Chris Grayling]

I completely agree with my right hon. Friend, and I have communicated that to the company concerned.

[Rachel Reeves (Leeds West) (Lab)]

Last week 49 trains were cancelled in my constituency, particularly at Bramley train station, meaning that passengers were late for work, for college and for other appointments. Frankly, passengers have lost faith in the Secretary of State. Is it not about time he stepped aside and allowed someone who can fix this problem to do the job?

[Chris Grayling]

This problem needs to be fixed as quickly as possible. I respectfully remind the Opposition that a private rail company is involved. Opposition Members keep telling me that we should nationalise it and have the Government running the trains, so they cannot have it both ways.

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

Enormous investment has gone into the Thameslink programme, with a new fleet of rolling stock and a state-of-the-art digital signalling system. Can the Secretary of State assure me that these new systems are working as planned and that the cause of the problem is not a technical failing?

[Chris Grayling]

My hon. Friend is absolutely right. The real frustration is that this is a consequence of major investment programmes and the delivery at the end of those programmes has gone wrong. The thing I find most frustrating about all this, and I absolutely feel for every single passenger who has waited for a cancelled train in the past week—I get the train every day, and I am as fed up with this as everyone else—is that this is the consequence of a change that resulted from a massive investment programme in the railways. We should now be seeing the fruit of that investment programme. We are not yet seeing it, and we have to make sure that we see it pretty quickly.

[Kelvin Hopkins (Luton North) (Ind)]

I have thousands of constituents who commute daily from Leagrave and Luton stations and who are suffering from recent service failures—I have a sheaf of their complaints in my hand. Is it not the reality that GTR has consistently sought to squeeze more passengers on to too few trains and has employed insufficient drivers in the interest of profits, at the expense of passengers? When are the Government going to accept the grotesque failure of private franchising?

[Chris Grayling]

I absolutely understand the pressures on the hon. Gentleman’s line. Part of the objective of this upgrade is to deliver longer trains and more trains, and it is a huge frustration to me that that has not happened. We have to make sure it happens as quickly as possible.

[Martin Vickers (Cleethorpes) (Con)]

What estimate has been made of the cost to the industry and of the potential impact on the various companies involved?

[Chris Grayling]

It is too early to work through that. I am more focused at the moment on getting services back to normal. The companies will undoubtedly bear a cost from this but, as far as I am concerned, the most important thing is making sure that services are back to normal and that passengers are compensated, and the companies will have to meet the cost of that.

[Chuka Umunna (Streatham) (Lab)]

The Thameslink service in my constituency from Streatham to London Blackfriars had 37 trains cancelled last Friday, and over 160 trains were cancelled over the course of last week. Every time the Secretary of State comes to the Dispatch Box—like the GTR managers—he blames everyone but himself. He has been in situ for two years. Are not my constituents entitled to think that this is just an utterly pointless Transport Secretary, because nothing ever changes under his watch?

[Chris Grayling]

I seem to remember that when I took over there were real problems with Southern metro services at other stations in the hon. Gentleman’s constituency. Those problems have now been improved and sorted, and those services are running very well—not across the whole Southern network, but across the Southern metro network. We now need to sort this problem out.

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

I have spoken to the Secretary of State over many weeks and months about the train issues in my constituency of Hitchin and Harpenden. I know the inquiry he has announced will look into culpability on this matter, but how much more evidence do we need that the senior management of Network Rail and GTR are incompetent, incapable and inept? How long can they go on?

[Chris Grayling]

We need to establish who is directly responsible for the decision making that has been got wrong here, establish the truth through the Glaister review and then take appropriate action—and we will.

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

My constituents, and the people in Yorkshire and the north, love their railway system, but they want it to be a good system that is safe and secure and that runs on time, to get them to work and to see their family. Does the Secretary of State realise just how much misery has been caused to so many families over these past weeks? I am not the most radical or left-wing member of my party, but even I believe that the system of privatisation has not worked and will never work, and that it is time we had a public service railway system in our country.

[Chris Grayling]

Of course I understand the frustration that the hon. Gentleman experiences. The irony is that these timetable problems have resulted from a planned expansion in services for his constituents and others across the north. It was designed to deliver thousands of extra train services for people across the north of England. It has not worked today and it must work soon.

[Alec Shelbrooke (Elmet and Rothwell) (Con)]

My constituents at Garforth, Micklefield and Woodlesford stations are agog at how bad the trains have got, and I lay the blame for a lot of this at the door of Network Rail, not the Secretary of State. There have been plenty of opportunities and plenty of promises made over decades; I was using this train line 20 years ago, and it was rubbish then and it is rubbish now. What can he do to ensure that Network Rail gets a grip of the situation and delivers on the promises it makes?

[Chris Grayling]

What we have to see is the completion of the investment programme, the delivery of the new trains and, above all, the sorting out of the timetable. Every train in the north of England is being replaced with either a brand new train or a completely refurbished one. The new trains are due to start arriving later this year. We have big investments taking place. The transpennine rail upgrade, at £3 billion, is the largest investment; it is part of the next rail infrastructure investment programme. It is just hugely frustrating that what has been done so far has yet to deliver the improvements it should to passengers and has actually made things worse. That must stop, and stop quickly.

[Helen Hayes (Dulwich and West Norwood) (Lab)]

My constituents have already faced three years of disruption and continual delays at the hands of GTR, Southern and Southeastern, and the chaos from the new timetable is making things worse. The impact of that chaos is more than simply inconvenience; it is taking its toll on relationships, family life and employment, and we have the heart-rending sight of students unable to get to important exams on time. The Secretary of State previously refused, for entirely political reasons, to pass control of suburban rail services in south London to Transport for London. Will he now accept that my constituents deserve their rail services to be run by an organisation that will put passengers ahead of profit, and hand them to TfL to run?

[Chris Grayling]

The only thing I would point out, respectfully, to the hon. Lady is that she has just called for the transfer of rail services from Southeastern to Arriva, which runs Northern, while other people are telling me that Arriva is not capable of running Northern. That is the reality of what she is arguing for.

[Crispin Blunt (Reigate) (Con)]

I do not envy my right hon. Friend and neighbour in making this statement today, but I know that he understands the position of Redhill and Epsom only too well, because he has been to visit Redhill station and see the infrastructure improvements that he is putting in place. However, my constituents were promised an improved service in 2014, after the London Bridge investment and for the new timetable in 2018, but even if the timetable was working properly they would have a worse service than they were promised four years ago. They have the privilege of paying the “Redhill hump” for being just outside the London zoning. My right hon. Friend and his Department are part of the industry, because they get the fare income generated under the GTR franchise, so will he please look at being part of the industry and not just dumping the issue of compensation entirely? Will he rapidly ask the rail Minister to bring forward plans to deal with the Redhill hump? Redhill services have had more cancellations than those anywhere else.

[Chris Grayling]

I say to Members on both sides of the Chamber that some places have undoubtedly been inappropriately disadvantaged by the timetable change. The rail Minister and I are happy to sit down in person with colleagues who represent those places to talk through how we can address those issues in future timetable changes. That offer is open to Members from all parties. We have seen a large number of colleagues today to talk about more short-term issues, and we are happy to have similar conversations as we plan for further timetable changes.

[Kate Hollern (Blackburn) (Lab)]

When the Northern franchise was awarded to Arriva, the previous Secretary of State for Transport, the right hon. Member for Derbyshire Dales (Sir Patrick McLoughlin), said:

“We promised passengers a world class rail service that would make the Northern Powerhouse a reality—and I’m delighted”.

He also said that the new operator would

“bring the Northern Powerhouse to life.”

Such promises would be laughable, except that they are tragic, because my constituents cannot get into Manchester for their jobs, cannot get to hospital appointments and cannot return home to pick up their children from childcare places. Why will the Minister not take responsibility, stop passing the buck and fix this now?

[Chris Grayling]

I would be delighted to fix it now. It is worth reminding the House that the Northern franchise is a partnership between my Department, Transport for the North and the Northern leaders. It was designed by all of us to deliver precisely the improvements that the hon. Lady describes. It is a huge frustration to me, and I suspect to everyone in the north, that that has not happened, and I assure her that I will do everything that I can. I trust that through the Rail North partnership we will deliver the improvements that have been promised and that her constituents deserve.

[Ms Nadine Dorries (Mid Bedfordshire) (Con)]

My constituents pay one of the highest prices for season tickets, out of taxed income. For more than 13 years, I have been complaining on their behalf as they have encountered one crisis after another, including under the previous Government for the first five of those 13 years. This is another crisis with which my constituents have had to deal. Will the Secretary of State please use his good offices to tell Thameslink to stop cancelling, with little or no notice, stops at Flitwick and Harlington and continuing the service on to Bedford, where people are stranded and find it very difficult to get home? Will he also insist that once trains are running normally, the compensation scheme is not inadequate and does not mean one month’s free rail use, but is more like six months’ free rail use on people’s season tickets? I welcome the Secretary of State’s statement that 24 trains an hour will be running soon, but when? We need them as soon as possible.

[Chris Grayling]

I completely agree with my hon. Friend, and I will make sure that an appropriate compensation package is in place. First and foremost, we have to make sure that there is a service on which people can rely. The thing that I think is currently most frustrating people is not being sure whether the train is going to turn up when they go to the station to catch it. The most important thing right now is for both Northern and GTR to deliver a service on which passengers can depend, so that they know that when a train is due it is actually going to turn up.

[Caroline Flint (Don Valley) (Lab)]

The Secretary of State has said that he and his Department were asking questions of the industry readiness board, the operators and Network Rail, and that they did not provide him with information that there was going to be such a disaster. In the interests of transparency, would he be prepared to publish any recorded letters, memos or emails that show that his Department was asking the right questions at the right time, so that we can see what answers he and his Department were given?

[Chris Grayling]

I am prepared to be completely transparent over this. I have instructed Stephen Glaister to go through everything, including the conversations with my Department, and that it should be made public. I have no doubt that the Transport Committee will do the same. I am aware of nothing that I would want to be kept hidden. I want everybody to understand what has gone wrong and I want lessons to be learned. The most important thing is that we make sure that this can never happen again. That is my No. 1 priority.

[Robert Neill (Bromley and Chislehurst) (Con)]

My constituents have suffered in exactly the same way as those of many Members. Frankly, they were misled when they were told that there would be an improved service after London Bridge was sorted, because there has not been and will not be, even when the timetable works as it should. More to the point, my right hon. Friend says that these are consequences of change, and I understand that, but is not the whole point of competent management that people are supposed to anticipate and deal with consequences? When Network Rail puts out a statement saying that

“we are looking at understanding the root cause”,

it sounds as if it is running a seminar rather than a railway. Will my right hon. Friend get rid of these incompetents, now?

[Chris Grayling]

I assure my hon. Friend that I am sufficiently angry at what has happened that anyone who has found to be negligent in this matter should not carry on in the job they are doing now. It is simply not acceptable to have a situation in which people are in operational control of something and completely fail to deliver. The whole point of setting up an independent review is to understand exactly what has gone wrong so that lessons can be learned.

[Luciana Berger (Liverpool, Wavertree) (Lab/Co-op)]

Two months before the changes, back in March, I asked the Secretary of State in a written question what steps he and his Department had taken to ensure that there was both adequate track capacity and adequate train numbers to support the proposed rail timetable change in the north-west, because my constituents knew then that there would be a problem. A junior Minister told me in a reply that it was the responsibility of the train operating company to support the proposed timetable changes—nothing to do with his Department. I have constituents who are standing in sweltering heat for five hours, some of whom are fasting for Ramadan—and that is if they can get a train at all. It is an absolute disgrace. What will the Secretary of State do to make it right today?

[Chris Grayling]

The answer to the hon. Lady’s question is that a temporary timetable is being put in place on Northern that should stabilise the timetable this week, and then, step by step, it will start to put back in place the extra services that were promised post May.

[Chris Philp (Croydon South) (Con)]

For at least three years now, my constituents have on occasion been unable to get to work, unable to reach hospital appointments and unable to get home in the evening to see loved ones. GTR has presided over an incompetent railway network for far too long. Can the Secretary of State confirm that if the Glaister report finds that GTR has been negligent in the handling of this timetable introduction, which has certainly been a fiasco, and that if GTR fails urgently to take the steps required to fix it, the measures he is contemplating will include removing its franchise?

[Chris Grayling]

I have been absolutely clear that, if GTR is found to be negligent, I will use the powers that I have under the Railways Act 1993 and under the contractual arrangements to deal with this.

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

There could not be a greater contrast between the millions of pounds of new investment in our railways being introduced by the Welsh Labour Government and the shambles over which the Secretary of State presides. Can he explain what on earth is going on at Great Western Railway? There have been repeated cancellations, delays, trains that are understaffed with no catering services, and trains breaking down. I have spoken to Great Western Railway, to Network Rail and to Hitachi. Hitachi tells me that the Department for Transport did not give a long enough period for testing the trains, and Great Western tells me that it sold off a load of its own trains to Scotland before the new ones were ready. Will he get a grip on that situation?

[Chris Grayling]

The Great Western modernisation is delivering new trains and a faster service, and by the end of this year it will deliver an improved timetable. There have been teething problems with the introduction of the new trains, but anyone who has travelled on the new trains in which this Government are investing on the Great Western route will say that they are a step in the right direction.

[Dr Matthew Offord (Hendon) (Con)]

This really is an appalling situation that we should have seen coming down the line given the history of the train operating companies. I have emails from my constituents that complain about a lack of communication from Govia Thameslink. They say that the refund procedures are lengthy and difficult to navigate and that the timetable implementation has simply not worked. Will the Secretary of State give serious consideration to introducing a short deadline to ensure that GTR in particular brings the service up to an acceptable standard, or finding another train provider that will do so?

[Chris Grayling]

I am very clear that I expect GTR to deliver an improvement to the current situation as a matter of real urgency. If it does not do so, it will lack the credibility to continue as operator.

[Paula Sherriff (Dewsbury) (Lab)]

What a mess! How would the Secretary of State respond to my constituent who contacted my office this morning to say that he has already had to use a significant portion of his annual leave allocation because he has arrived at work hours late every single day over the past couple of weeks? Given the debacle that we have seen on the trains recently, with not just this situation but the delayed electrification and the problems on the east coast main line, does the Secretary of State believe that he has the competence to sort this out?

[Chris Grayling]

What I would say to the hon. Lady’s constituent is that I am very, very sorry and that we will have a compensation scheme. Somebody has to sort this out, and that is what I am going to do.

[Tim Loughton (East Worthing and Shoreham) (Con)]

I am sure that I speak on behalf of thousands of commuters in Sussex when I say that this must be the end of the line for the GTR franchise. We were constantly assured that the driver shortage had been addressed, but now we are told that the problem is the wrong type of drivers on the line. Will the Secretary of State assure me that the compensation scheme will be a realistic one, that it will be paid for not by his Department this time but by the train operators, and that, within six months maximum of the Glaister review reporting, he will be in a position to take back that franchise?

[Chris Grayling]

The people responsible for this have to pay the cost. In terms of the report, I will be absolutely clear that if I need to take action, I will be ready to take action.

[Bill Esterson (Sefton Central) (Lab)]

Before the timetable changed, Members across the House warned about the problem. On a number of occasions, I have warned about the problems for people travelling from Southport to Manchester. It seems that anyone who knew anything about railways—especially the travelling public—warned Ministers about the shortage of drivers, the delays and the engineering works. Given all the warnings, why did the Secretary of State not delay the implementation of the new timetable? Frankly, given the chaos, why is he still in his job?

[Chris Grayling]

One of the things I want the Glaister report to do is identify why the train companies did not tell us that there was a sufficient problem to delay or halt the introduction of the timetable.

[Henry Smith (Crawley) (Con)]

What my constituent commuters and, indeed, I—as a passenger—want to know is, why does Govia Thameslink have such a lack of planning and future foresight? There are to be major engineering works on the London to Brighton main line in October this year and February next year. What assurances can I have for my constituents travelling from Three Bridges, Crawley, Ifield and Gatwick Airport stations that proper planning will be in place to ensure that those engineering works, which are welcome, do not cause undue disruption?

[Chris Grayling]

I will ensure that the rail Minister sits down with my hon. Friend and has a conversation with all those involved to make sure that those works are not an issue. As he knows, there has been necessary investment to sort out problems on the Brighton main line, but we cannot have the works causing inappropriate levels of disruption. There will inevitably be some disruption, because engineering works cannot be done without it, but we have to ensure that they are done in the right way.

[Rosie Cooper (West Lancashire) (Lab)]

To describe my constituents as incandescent would be an absolute understatement. Colleagues across the House have described the impact this fiasco has had on families and individuals. I have listened carefully to the Secretary of State and he seems to have been reassured by the information he has received, but he does not seem to have tested that information to assure himself and his Department that the information was correct. If that is so, how can we be sure that he has tested and is assured of his potential solutions?

--- Later in debate ---

[Chris Grayling]

I simply say that we have teams of people whose job it is to assure this. They did not see this situation coming; nor did the train operators. The Glaister review is necessary because this should not have been able to happen.

[Heidi Allen (South Cambridgeshire) (Con)]

If GTR is telling the Secretary of State that things are getting better in my constituency of South Cambridgeshire, it is not being truthful to him. The experience of my constituents—and, indeed, my experience of travelling in today—is that things are getting worse. Network Rail may hold the lion’s share of the responsibility, but the operators have a role to play too. Why on earth did they not flag at minus three weeks that that period of time was not going to be long enough? The operators clearly told the Secretary of State that everything was fine, but last week they told me that it was not and that three weeks would never have been long enough, so which one of us are they lying to?

I ask the Secretary of State for two actions. First, he says that the emergency timetable that has been implemented today would take us back to pre-May levels. It is not doing so at all; it is actually worse. By the end of this week, can we please aim to have the pre-May timetable back in place? Secondly, we have heard about compensation for Northern passengers being akin to that of Southern last year. I have to tell the Secretary of State that the GTR performance up and down the line in my constituency is as bad, and we should be considered for the same levels of compensation.

[Chris Grayling]

I will certainly take on board my hon. Friend’s points. I hope and expect, and am insisting, that we see stabilisation during the course of this week. What matters is that people know which trains are going to run, and that they know a train will be there when they turn up. That is the most important priority, certainly on her line.

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

Many of my constituents are furious that they cannot get to work owing to driver shortages and mass cancellations in the timetable in what is supposed to be a situation of planned improvements. How much worse does it have to get before the Secretary of State will consider removing the franchise?

[Chris Grayling]

Of course the future of both franchises is a genuine issue, but I honestly think that the most important thing right now is to solve the problem. Sacking the people who are working to solve the problem would probably not get us anywhere. As to what will happen a few months’ time, when we have seen the Glaister report—that is a very different question.

[Fiona Bruce (Congleton) (Con)]

Northern Rail has changed or reduced the already limited rush hour services between Congleton and Manchester to such an extent that my constituents say that they are having to face the pressured M6 and M56 commute by car, and that this timetabling change may even breach Northern’s service level agreement. Will the Secretary of State take up with Northern Rail this wholly inadequate rail service for a growing town, and will he require improvement?

[Chris Grayling]

As I said a moment ago, the rail Minister and I are happy to talk to individual colleagues on both sides of the House to look at places where there are issues of this kind. There are rolling timetable changes each year. If we can look at cases where a town has genuinely been disadvantaged, we can see what we can do to sort that out.

[Mohammad Yasin (Bedford) (Lab)]

Bedford rail users who lost their peak time East Midlands Trains service are still facing the misery of cancellations and delays. Trains are leaving St Pancras half full and are whizzing past Bedford, while my constituents have been forced on to dangerously overcrowded Thameslink trains. This is absolutely ridiculous. Will the Secretary of State stop making excuses and reinstate the Bedford EMT service today?

[Chris Grayling]

I have already asked the industry to look at whether it can restore some of the East Midlands Trains services to ease the pressure on Bedford in the interim period, while this disruption is happening. It seems a logical thing to do, given that the train paths are not being occupied by Thameslink at the moment.

[Paul Scully (Sutton and Cheam) (Con)]

This was supposed to be the light at the end of the tunnel, but that is actually a train coming fast the other way. Commuters do not want to play the blame game. They just want their trains to work now. The short-term view of sacking a franchisee overnight would really just mean the same people running the same lines with differently spray-painted trains. I want us to look back and find out how nobody, but nobody, thought to postpone the process, but we should also look to the future: will the Secretary of State tell us how many lifelines GTR needs before we realise that it should have no place on the UK’s rail network?

[Chris Grayling]

I am very clear that once we know the full culpability for this situation, the appropriate action will be taken if it needs to be taken.

[Hilary Benn (Leeds Central) (Lab)]

The more the Secretary of State has described this afternoon some of the reasons why this disaster occurred—lack of preparation and lack of time—the more commuters and others on Northern and TransPennine, who have suffered so much misery, will wonder why the introduction of the new timetable was not cancelled, rather than their trains. It is quite clear that the Secretary of State had no idea what was going on. The question that he has not answered today is, why?

[Chris Grayling]

As I said, in the case of GTR I had the chief executive in my office three weeks before saying that it would be fine. In the case of the teams running the Northern branch, they indicated to my Department that it would be a difficult start, but not on anything like this scale. I have set up the independent inquiry into what has gone wrong because I am not alone in this. When I talk to other people—on the independent assurance panel and the board set up to oversee the introduction of the timetable, the Rail North team and other people on the Rail North board, and the chair of Transport for the North—it seems that nobody was expecting this. That is completely unacceptable. We need to understand why it has happened and ensure that it can never happen again.

[Mary Robinson (Cheadle) (Con)]

My constituents have suffered huge delays, cancelled services and unacceptable travel uncertainty. What reassurances will the Secretary of State give Northern commuters that they will quickly have a functioning service and that pre-existing timetable gaps locally will also be addressed?

[Chris Grayling]

I have been very clear with the companies, as has the Rail North Partnership, that they need to get back to a position of stability. I expect that to mean that they will be running slightly more trains overall across the network than they were prior to 20 May, and that they will move over the next few weeks to reintroduce services in order to get back up to the expanded level that was supposed to exist. If there are individual issues, as I know there are in my hon. Friend’s constituency, the rail Minister and I will happily sit down and look at how we can address them as we move towards future timetable changes.

[Tracy Brabin (Batley and Spen) (Lab/Co-op)]

On Saturday, two of my constituents, both in their 70s, were unfortunate enough to find themselves on the 23:03 Northern service from Leeds to Brighouse—the culmination of what they called a tortuous journey due to timetable chaos. They described the crammed Northern train as “filthy, a cheap product that has been neglected and flogged to death”. Does the Secretary of State agree with the Mayor of Manchester that Northern rail is now in the last chance saloon? Can he tell the House when he will stop passing the buck and take full responsibility for this chaos?

[Chris Grayling]

Both Northern rail and GTR have a whole lot of questions to answer and they are in the last chance saloon, so the hon. Lady is absolutely right. On the comments that her constituents rightly make about the trains, it is time for all those trains to be replaced, and over the coming months they are going to be.

[Mr William Wragg (Hazel Grove) (Con)]

The announcement of an inquiry and compensation is of course welcome. Leaving aside the atrocious implementation of the new Northern timetable, will my right hon. Friend the Secretary of State bang heads together to sort out the morning peak-time 45-minute gap in services that is affecting my constituents so badly?

[Chris Grayling]

We will do that. I will ask the Minister of State, my hon. Friend the Member for Orpington (Joseph Johnson), to sit down with my hon. Friend and go through this to make sure that we address some of the timetable anomalies that inevitably come out of a big change like this, which are not just short-term issues but actually structural issues in the timetable.

[John Woodcock (Barrow and Furness) (Ind)]

Yes, of course the timetable changes have been a total fiasco, but does the Secretary of State not understand that people in Furness in Cumbria have been begging him for months to get to grips with this appalling situation? Before Northern took on the full franchise, there were 103 cancellations in a year on the Furness line. Last year, there were 212. Then, in the financial year that has just finished, there were 517—and that was before the timetable changes. Will he stop treating my constituents as though they have got the fag end of what is a pretty horrendous deal right across the country and take this situation seriously, starting tonight?

--- Later in debate ---

[Chris Grayling]

I and my Department have taken the situation seriously for a long time. With regard to lines like the Furness line, this is why we are investing in new trains to provide a better service. The Cumbrian Coast line has to put up with knackered old trains that should have been sent to the scrapyard years ago. It is finally going to get new trains in the coming months, and they are long overdue.

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

I welcome the Secretary of State’s statement and his commitment to investigate what has gone wrong and to take appropriate action as soon as possible. Does he believe that part of the answer to ensuring that this situation never happens again is combining the operation of track and train under one operator?

[Chris Grayling]

Bringing track and train back together is part of the solution for the railways. I am absolutely sure that the railways are going to have to change quite a lot as a result of what has gone on, which has been completely unacceptable. Their ways of working have got to change. We are going to need a reshaped approach for the future.

[Thelma Walker (Colne Valley) (Lab)]

Disabled passengers in my constituency have been told that they will not be able to catch certain trains as TransPennine has rolled out old stock to try to fix the broken timetables and reduce delays. Does the Transport Secretary agree that this is discrimination and unacceptable? Will he intervene to tell TransPennine that it must make sure that each train is compliant with disability legislation?

[Chris Grayling]

It is the duty of all train companies to ensure that that happens. The rolling programme of train replacement means that all trains will be disability-compliant. Every train in the north is being replaced with either a brand new train or a refurbished, as-new train. I will continue to make the point to all train operators—as will the Under-Secretary, my hon. Friend the Member for Wealden (Ms Ghani), who is responsible for accessibility—that they have to make a priority of this.

[Damien Moore (Southport) (Con)]

My right hon. Friend has already visited my constituency and seen the level of frustration and concern about the timetabling. Will he continue to engage positively with me and with rail passengers’ groups so that we get the best possible service for Southport rail users?

[Chris Grayling]

I absolutely agree with my hon. Friend. We need to work together to make sure that we get some services back to Piccadilly, which I know is very important to so many of his constituents. He and I will work together on that.

[Stephen Twigg (Liverpool, West Derby) (Lab/Co-op)]

Does the Secretary of State recognise the very deep anger among Northern Rail passengers in Liverpool and elsewhere about what has happened? Let me press him on the issue of compensation. He says that there will be a special compensation scheme. In the past week, constituents have been in touch who have had only partial compensation because they hold a Merseytravel Trio ticket and Northern will not compensate them for that part of the journey. Surely appropriate redress must mean full compensation for every passenger.

--- Later in debate ---

[Chris Grayling]

That is a very serious point, and I am happy to make sure that it is dealt with. There were some similar issues with Southern in relation to Oyster card holders. We need to make sure that the travellers who should be entitled to compensation do get that compensation. That is why we are not rushing into announcing details of the scheme right now: we are going to make it right.

[Mark Menzies (Fylde) (Con)]

For over six months, my constituents have been using bus services during electrification of the Blackpool to Preston railway line. The current chaos therefore comes at the worst possible time when people were looking forward to a good service, and they are absolutely gutted. Can the Secretary of State assure me that they will be able to enjoy the multi-million pound investment that has gone in? When will he put the full force of his weight behind Northern Rail to make sure that it fixes this problem now? Can my constituents look forward to getting the railway that they had hoped for?

[Chris Grayling]

My hon. Friend puts his finger on the frustrations. On his line, the disruption has been a result of long overdue investment in improvements for the future and a commitment to railways in the north. It is a tragedy that the electrification delay has had such disastrous effects for timetabling across the whole area. We need to sort out these problems in the short term. We need to get the electrification of his route up and running as quickly as possible so that all the improvements that were planned actually happen.

[Tom Brake (Carshalton and Wallington) (LD)]

For four years, GTR has failed to run services efficiently and provide sufficient drivers. So before the Secretary of State walks the plank, will he do two things? First, will he confirm that any compensation that is going to be paid will be based on the timetable that the company should have been running, or indeed better than that? Secondly, will he consider reversing a U-turn that he performed some months ago? He had proposed handing over the services in suburban London to the Mayor of London when the Foreign Secretary was the Mayor, and then changed his mind when Sadiq Khan became Mayor. Will he reconsider that decision?

[Chris Grayling]

I never took that decision in the first place. It is my view that services running outside London should not be controlled by an elected representative inside London. The approach that we have taken in the north, the west midlands and elsewhere, and have offered in London, is one of partnership so that we get involvement from both sides. That is the right way to do it. With regard to handing over services to the Mayor, London Overground is a franchise run by Arriva, the same company that runs Northern, so I am at a loss as to why people think that that is a magic solution for the future.

[Maria Caulfield (Lewes) (Con)]

Do we really need a review before action is taken? People who commute from Lewes, Polegate, Seaford, Newhaven and many more stations have had to endure not just the timetable changes, but 18 months of strike action and 18 months of misery while the London Bridge works were happening, and we now have fewer trains than ever before. When trains do run, they sometimes do not stop, as happened in Lewes and Polegate today, and when they do stop, passengers cannot get on because of short formations, with trains going down from 12 carriages to four today. The only question my constituents have is, “When is Southern Rail going to lose its franchise?” If I can be helpful to the Secretary of State, the answer should be “Now.”

[Chris Grayling]

The important thing to do is to make sure that these problems are sorted out. It may be that at the end of this there is a franchise change, but I want to do anything like that in the right way, in the right timeframe, and in a way that is justifiable. I have to fulfil contractual commitments. I have to look at where culpability lies. We need to go through that process first. In the meantime, having short-formation trains on Southern, which otherwise is performing pretty well, is completely unacceptable, and it needs to fix that straight away.

[Several hon. Members rose—]

[Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)]

Thank you, Mr Speaker.

If someone conspired to break into my garage and steal or immobilise my car, they would face the full force of the law. The Secretary of State’s Department has conspired with the railway companies in an incompetent manner to change the timetables, and despite repeated warnings from the Opposition, the companies went ahead with it. When will they face the full force of having their franchises stripped from them, or when will he be brave enough to face up to this and resign?

[Chris Grayling]

I have mentioned to the House the industry bodies that we have put in place. It is only a week since Labour was demanding that the railways were run by rail professionals—actually, they are. Those rail professionals have been overseeing this process, they got it wrong, and that is why we are having the inquiry.

[David Morris (Morecambe and Lunesdale) (Con)]

I have to thank the Secretary of State, because he has tried to accommodate me three times today. I think we should have some brevity in the House, because parties of all colours have the same problems. The reality is that this is a mess. We have to get a realistic timetable in order and make sure that when these train companies cancel—I saw it today at Lancaster station, when Northern cancelled on the commuters that I was standing on the platform with—they have alternative transport already in place. I ask the Secretary of State to sort these companies out, but in a measured way, because I realise the pressures he is under, and I am mature enough to realise the contractual obligations that he has to consider.

[Chris Grayling]

This is the important thing. It is easy being the Labour party, demanding this and demanding that, but we have to do what needs to be done in the right way, focusing first on getting a stable timetable, then identifying what has gone wrong and the culpability, and then taking appropriate action. That is what we will do.

[Afzal Khan (Manchester, Gorton) (Lab)]

The new timetable came into effect today, but my constituents have the same old problems. Despite axing 165 services, more than 60 trains had been cancelled by 8.30 am. All the while, rail fares have risen by 32%, and the promised electrification has been scrapped. Can the Secretary of State tell me when my constituents can expect compensation and improved services, and what personal responsibility he takes for the chaotic mismanagement of this country’s rail network?

[Chris Grayling]

The Labour party keeps saying that it wants the Government to run the railways. We do not at the moment. The temporary Northern timetable has been put in place this week. Some adjustment of rosters is taking place right now. I hope and believe that by the middle of the week, we will return to a point of stability, with a lower level of cancellations than today and tomorrow and getting back to a reasonably dependable timetable within a day or two. That is what I am expecting, that is what we have been promised, and that is what we will be demanding of Northern Rail.

[Jeremy Quin (Horsham) (Con)]

rose—

--- Later in debate ---

[Huw Merriman]

Thank you, Mr Speaker—I’m always your man.

In the two years that the Secretary of State for Transport has been in post and I have sat on the Transport Committee, he has always been very honest, open and direct about the need for change. For any project management exercise to fail to get the sign-off from Network Rail and for it to find out only three weeks before, by which time it is too late to turn the oil tanker around, has got to be a spectacular failure. Who was the project manager and penholder for this exercise?

[Chris Grayling]

That is a very interesting question. My view is that the Network Rail timetabling process has gone badly wrong, and I cannot understand why GTR did not raise the alarm. I have asked Professor Glaister to go through all this because I want to understand exactly where the accountability should lie and be able to take appropriate action.

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

Northern Rail has cancelled so many trains that an app has sprung up called “Northern Fail”, to help commuters in the so-called northern powerhouse make even the most basic of journeys. What will the Secretary of State do to ensure that these commuters, who have forked out for childcare, taxis, hire cars and hotels, are adequately and fully compensated?

[Chris Grayling]

I am very clear that we have to provide a compensation scheme of the kind that was delivered to Southern passengers after the huge disruption they experienced a year ago. I am very clear that that is what will happen.

[Jeremy Quin]

To reassure you, Mr Speaker, an hour’s wait is sadly not unusual for Horsham right now. I wish we were getting back to a far more regular service. Significant investment has been put into our line, which was meant to result in a far better service for our commuters. I welcome an independent inquiry to find out what on earth has gone wrong, but in the meantime, can we at least ensure that where there are fewer, busier trains, they are not short-form, so that people can get on them?

[Chris Grayling]

That has to be dealt with, and we will communicate that to GTR. If there are fewer trains running, they should be not short-form trains.

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

The Secretary of State told the House that sorting out the timetable chaos was his Department’s No. 1 priority. That is a phrase he has used before about Dawlish and the resilience work in the far south-west, which was apparently his No. 1 priority. What is his No. 1 priority, and will Northern and GTR passengers have to wait the years that passengers in the far south-west have had to wait for action on Dawlish?

[Chris Grayling]

The work on Dawlish has already started, as the hon. Gentleman knows. In terms of the infrastructure period that is about to start, delivering that work is, in my view, the most important capital project in the country. The most important priority on my desk now is self-evidently to get this sorted.

[Grahame Morris (Easington) (Lab)]

My constituents are also experiencing their share of misery. The hon. Member for Lewes (Maria Caulfield) said that trains serving her constituency had four carriages, but most of the trains serving mine only have two carriages to begin with, so they are already overcrowded even before any cancellations. It is clearly a failure of planning and co-ordination and a lack of integration. Will the Secretary of State or his successor give an assurance to the travelling public that a similar fiasco will not occur with the next timetable changes in December?

[Chris Grayling]

We are working extremely hard to make sure that this does not happen again. We have to deal with the short-term problem. We also have to make sure that this is not repeated with the December timetable change or future timetable changes. Where major investment leads to a major change in services, we cannot have a situation where that causes chaos on the network again.

[Judith Cummins (Bradford South) (Lab)]

Does the Secretary of State understand the real human cost of this fiasco and the fact that every disrupted journey represents chaos for our constituents and losses for our businesses? He talked in his statement of major failures and holding the industry to account, but when will he take responsibility and hold himself to account over his repeated and major failures?

[Chris Grayling]

My job is to do everything I can to make sure that the industry gets itself back on the straight and narrow, and that is what I will do.

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

We have been going for an hour and fifteen minutes now, and the Secretary of State has failed to take any responsibility for the current chaos on our rail system. George Osborne wrote in The Times today about better economic advantages for the Humber area if we have faster train journeys, which I am sure the Secretary of State agrees with. However, with the new TransPennine Express timetable, the early indications are that most journeys across the Pennines are taking 15 to 20 minutes longer. Does he take any responsibility for that? How does it fit with the Government’s plan for the northern powerhouse and improving connectivity between east and west by speeding those journeys up?

[Chris Grayling]

What we are delivering is this: starting next spring, the £3 billion upgrade to the transpennine railway will make a huge difference to journeys; the TransPennine franchise is bringing in brand new intercity express trains in the coming months; and of course, Humberside will also benefit from the huge investment taking place in new trains on the east coast main line.

[Yvonne Fovargue (Makerfield) (Lab)]

My constituents have been suffering outdated Pacer trains, overcrowding and cancellations for years, and the recent timetabling chaos and the removal of the transpennine service just exacerbated that. A promise of a better service by 2020 is just not good enough. My constituents need to get to work now, and no compensation will make up for the written warnings and even the job loss that one person has told me about. Will the Secretary of State at least consider insisting that TransPennine reinstates the stop at Wigan until he can sort out the Northern chaos?

[Chris Grayling]

The hon. Lady and I are meeting later, so I will happily talk through that with her.

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

Northern’s new emergency timetable takes 165 services out of the timetable. It has been running for the first day today. A further 40 trains have been cancelled and punctuality is running at under 50%. Those figures were correct as I came into the Chamber at 5 o’clock, so they do not include the evening peak. The one question the Secretary of State has not answered so far is this: who in the Department for Transport gave approval for this timetable change to go ahead?

[Chris Grayling]

Timetable changes are not approved by the Department for Transport. These are matters for the different parts of the rail industry; they are the ones who take those decisions.

[Julie Cooper (Burnley) (Lab)]

The new timetable implemented by Northern Rail on 20 May has brought chaos and misery to Burnley rail users, with 22 trains cancelled on one single day and over 50% of the trains from Burnley Manchester Road station being delayed or cancelled altogether every single day. I have been listening to the Secretary of State answering questions for over an hour. Maybe I missed this, but I still do not understand why these timetable changes were permitted to go ahead when it was known that infrastructure works were incomplete and there was a shortage of train drivers. I would be grateful if he could cast some light on that. Most importantly, could he tell my constituents when they can expect the restoration of a reliable service? The interim timetable that started today has not improved things one little bit.

[Chris Grayling]

My understanding is that there is a need to align train crew rosters with the new timetable. That will take another 48 hours, but I am assured by Northern that the new timetable introduced this week should, as the week goes by, restore stability to that network. That is certainly—absolutely 100%—my expectation. It is essential for the hon. Lady’s constituents and that has to be delivered.

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

rose—

--- Later in debate ---

[Kate Green]

These are not recent problems. They predate the introduction of the new timetable. They predate the delay in the infrastructure improvements, and I have been talking to the Secretary of State, in this Chamber and in private meetings, for month after month about the problems my constituents are experiencing. He says that he took advice from industry experts, and of course he should, but why did he not also take advice and ask questions based on the information coming from Members of this House and on the information from the travelling public that has been all over social media for months? What questions did he ask these industry experts?

[Chris Grayling]

The whole point about the new timetable—it has clearly not worked and it must work—is actually to deliver a more reliable service through reshaping timetables in a way that means there is less congestion and more services can be run for passengers. This has clearly not worked at all. This timetable was put in place for the best possible reasons and it has so far delivered the worst possible outcomes. That must change.

[Debbie Abrahams]

I first contacted the Transport Secretary back in November to raise concerns about the proposed timetable and, unfortunately, he completely ignored my concerns. Today’s interim timetable has brought even more havoc to my constituents who use Greenfield station, with five—up to now—trains being cancelled. What immediate action is he going to take to resolve some of the issues not just about timetabling, but about capacity? Will he ensure that, this time, passengers are involved?

[Chris Grayling]

Of course, the reality is that the most important thing, as I have set out, is that Northern Rail needs to deliver this week, as it has promised, a more stable timetable and something that people can rely on. Step by step, it then needs to put back in place the additional services that were supposed to deliver better options for the hon. Lady’s constituents and others. That clearly has not happened and I deeply regret that. It is unconscionable, and infuriating to all of us in government, that the things that were supposed to deliver a better outcome for everyone have not done so. We will not be anything other than relentless in pushing the rail industry to ensure that those benefits are delivered. They should be there now. They are not. It is worse than it should be. That has to change and it has to change quickly.

Oral Answers to Questions

Chris Grayling Excerpts

Thursday 24th May 2018 Commons Chamber

[Tommy Sheppard (Edinburgh East) (SNP)]

3. What assessment he has made of the effect of the UK leaving the EU on the rail industry.

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

The Government’s rail sector report was published in December and included an analysis of the rail industry. We keep our analysis under constant review. Our future relationship with the EU on rail will be a matter for the negotiations. Both the UK and the EU have greatly benefited from investment in each other’s rail markets. We want that to continue as the UK leaves the EU.

[John Mc Nally]

The Secretary of State will be aware that passengers in Scotland have been protected from the impact of fare increases as a result of the Scottish Government’s cap of RPI minus 1%. Will he not take a leaf out of the Scottish Government’s book to ensure that passengers are not hit in their pockets as the result of his Government’s inability to provide even basic certainty over Brexit?

[Chris Grayling]

I am not sure quite what that has to do with our future relationship with the EU, but I want the rate of increase of rail fares to come down. The biggest barrier to that is the Labour party’s and the trade unions’ insistence that the RPI measure has to be at the heart of every pay increase in the rail industry. The industry collectively needs to move to RPI, but the training manuals for the unions that back the Labour party insist that it is unacceptable to negotiate on anything except an RPI increase.

[Tommy Sheppard]

The Government often cite EU regulations on state aid as a constraint on their agency. Can we therefore look forward, after Brexit, to innovative new approaches to the public ownership of the railways, or will the Secretary of State continue to sell rail services to the state-owned companies of other EU countries?

[Chris Grayling]

We have a diverse rail market, with investment from the UK and international investment. I hope very much that after Brexit we will not become a country that does not welcome international investment. We are an outward-facing global nation, and I hope that will continue.

[Kevin Foster (Torbay) (Con)]

In the Secretary of State’s assessment of the rail industry post Brexit, did he include the vital nature of securing resilience in the coastal railway at Dawlish, given the link to Falmouth docks and the freight services that bring in exports?

[Chris Grayling]

I want to reiterate that this is an absolutely crucial project for our railways. Network Rail is currently doing preparatory work for the very necessary improvements at Dawlish. I have given an absolute commitment that those works will go ahead. I regard this project, to make sure a proper resilient railway for the future is delivered to the south-west, as the most important infrastructure project in the country. It is one thing having a railway that is not quite up to date; it is quite another having a railway that gets cut off. We will not let that happen.

[Martin Whitfield (East Lothian) (Lab)]

The east coast main line will be very important following our departure from Europe. Will the Secretary of State guarantee that smaller operators, such as ScotRail, have a say in what happens to rail?

[Chris Grayling]

It is really important that we protect the interests of passenger and freight operators. I have been clear that the new board leading the integration and development of the London North Eastern Railway will have representatives whose job is to protect the interests of smaller operators.

[Tim Farron (Westmorland and Lonsdale) (LD)]

EU rules clearly did not prevent the Government from taking the east coast franchise off Stagecoach last week, which shows their power to remove a franchise from a failing operator is not hampered by them. Given that this week we managed to pass 300 cancellations on the Lakes line in Cumbria since the beginning of April, and the enormous and catastrophic impact that is having on commuters, tourists and GCSE students trying to get to their exams, will the Secretary of State listen to the exasperated travellers of Cumbria and intervene to strip Northern of both its Furness and Lakes franchises—and do it today?

[Chris Grayling]

Let us be clear: the situation with Northern has been unacceptable. As I said yesterday, I will this morning chair a conference call with the Northern leaders. This is the most devolved franchise. It is a partnership between Northern leaders and the Department for Transport, but it is not solely led by the Department. None the less, it is no less important to me that we get this situation resolved. I am very clear that this problem has arisen for two prime reasons: the problems with electrification Network Rail is carrying out on the line through Bolton and the failure of Network Rail to deliver a finalised timetable in time. When the hon. Gentleman talks about the need to strip the franchise and renationalise, he is shooting at the wrong target. This is a Network Rail failure and it must not happen again.

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

We know that since rail privatisation the Secretary of State thinks magic money appears from nowhere with no risk to the taxpayer, but that is not the case. When it comes to infrastructure, the UK relied on £35 billion of loans from the European Investment Bank between 2011 and 2015. Where will that money come from for rail infrastructure post Brexit?

[Chris Grayling]

We are a substantial net contributor to the European Union, so the money given to the UK from different European funds actually originates in the UK. We will be able to spend our money in the way we see fit. We are of course spending record amounts of money on rail infrastructure to develop what needs to be a better, expanded and more resilient rail network.

[Mr Bob Seely (Isle of Wight) (Con)]

2. What steps he is taking to implement the digital railway strategy.

[Tom Tugendhat (Tonbridge and Malling) (Con)]

4. What steps he is taking to implement the digital railway strategy.

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

Two weeks ago, Mark Carne, the chief executive of Network Rail, and I launched the company’s digital railway strategy in York, where we announced that the industry should make plans for all future renewals to be digital or digital-ready. I have already approved funding to develop digital schemes in Moorgate and the south-east, and in particular, I have set out plans for the new TransPennine route. The £2.9 billion modernisation, starting around this time next year, will be Britain’s first, principal inter-city digital railway, and very necessary it is.

[Mr Seely]

Later this month, the priced option for the Island line in my constituency will be presented. I will be writing next week in support of that priced option. Can the Minister assure me that the Government understands the importance of the Island line to the Island and the importance of investment in it—in track, railway and stations such as Ryde Pier Head, which is on the pier, and Ryde Esplanade, which is a key gateway? Is he aware of my strong support for a feasibility study into extending the Island line south and west?

[Mr Speaker]

I must tell the hon. Gentleman that one of his constituents, not very far from here, has been listening intently to his question.

[Chris Grayling]

I know indeed, Mr Speaker—in fact, he used to be a constituent of mine and is now benefiting from the wonderful environment that is the Isle of Wight. My hon. Friend has been an excellent champion for it since his election. I can assure him that the Rail Minister, my hon. Friend the Member for Orpington (Joseph Johnson), and I will be taking careful note of the plans as they come through, and we will work with him to try to find the best way to ensure that his constituents have the best service that it is possible to deliver to them in future.

[Mr Speaker]

I call Tom Tugendhat—where is the fella? He has obviously beetled out of the Chamber. It is a pity that the hon. Member for Tonbridge and Malling is not here, but we will bear up stoically and try to manage without him.

[Karen Lee (Lincoln) (Lab)]

18. Following the collapse of the east coast main line franchise, will the Secretary of State make a firm commitment to Virgin’s previous pledge to deliver additional train services between Lincoln and London in 2019? They are essential for our local businesses.

[Chris Grayling]

Let me be very clear: it is my intention that the commitments to new services made in the Virgin Trains franchise are delivered. The hon. Lady will know, as I have told the House before, that there is an issue and has been for some while around the timing of some of those services because of problems with infrastructure improvements. I am putting Network Rail under as much pressure as possible to deliver those as quickly as possible. I give her and all Members who are waiting for these new services an assurance that I will make sure that they are delivered.

[Robert Neill (Bromley and Chislehurst) (Con)]

Can the Secretary of State tell me how the roll-out of the digital strategy, which is in itself a good thing, on my local lines is going to stop me receiving tweets like the one I received this morning? It said:

“Chaos for 4th day on SE lines—trains cancelled, late, diverted, not stopping, short formation & angry passengers”.

How is the strategy going to help that?

[Chris Grayling]

There are benefits of digital technology, but my hon. Friend will be aware that this is a difficult week on the railways, as I have explained. It has happened because of the late delivery of the timetable. This is the second time that it has happened in six months. I have already had discussions with Network Rail about this. It must not happen again. What the digital railway will do is create a railway that can run more trains more reliably. It gets rid of the risk of traditional signal failures, which are a big part of the frustrations that many commuters face, and I want to see, over the next few years, our stopping replacing old-fashioned traffic-light signals and using digital technology instead.

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

A digital railway is vital for improving capacity in the far south-west but will not necessarily improve journey speeds. If our journey times are to be long, they at least need to be productive, so can I ask the Secretary of State to commit to working with colleagues at the Department for Digital, Culture, Media and Sport to improve our mobile and wi-fi signals to remove all the notspots in the far south-west, especially on rail journeys to Plymouth?

[Chris Grayling]

Sometimes, we disagree across the Chamber, but on this one I completely agree with the hon. Gentleman. We are looking at the best options to do this. I think that we should be getting mobile operators to put up more masts down the route, and particularly as we move to a 5G network, I want to see that 5G network up and down the railway—and not just for passengers; it helps the digital railway as well. On this one, I am absolutely with him.

[Sir Desmond Swayne (New Forest West) (Con)]

What is it?

[Chris Grayling]

I commend my right hon. Friend for his very good question. The transition to digital technology basically means that in future, rather than having a red-amber-green signal by the trackside, the signalling is done automatically from the cab of a train. Each train will know how far it is to the train in front. It is therefore possible to manage the network more efficiently, to run trains safely closer to each other and to deliver more capacity for passengers.

[Mr Speaker]

It all sounds very sophisticated, although it is a bit above my pay grade, I am bound to say.

--- Later in debate ---

[Ms Ghani]

Not at all.

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

It was the hooting of a bus horn.

[Ms Ghani]

It happened because I was about to mention two very important packages of funding.

The Department contributed just over £32 million towards the £43.2 million Manchester cross city bus package, which was completed in 2017. Now we need another little beat of the drum, because there is another huge sum coming up. The Greater Manchester combined authority received a guaranteed allocation of £243 million from the £1.7 billion transforming cities fund to improve public transport. If the hon. Gentleman is still not satisfied, I suggest that he talk to the Mayor.

--- Later in debate ---

[Adam Afriyie (Windsor) (Con)]

10. What estimate he has made of the cost to the public purse of the construction and operation of a third runway at Heathrow.

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

The Government have always been clear that any scheme for additional airport capacity should be financed by the private sector. The Airports Commission concluded that this was a viable way forward. As set out in the revised draft airports national policy statement, independent financial advisers have undertaken further work and agreed that expansion of Heathrow can be carried out without public finance.

[Adam Afriyie]

I thank the Secretary of State for the answer. The report by the Select Committee on Transport on the airports national policy statement said that the Lakeside Energy from Waste plant should be treated

“with equivalent recognition as the Immigration Removal Centres and that the replacement of its facilities be accounted for in the DCO process.”

Will the Secretary of State confirm that his Department has assessed any infrastructure upgrade needed, such as that to roads and powerlines, to accommodate the relocation, and will those costs be met by the taxpayer?

[Chris Grayling]

First, I extend my thanks to the Select Committee, which has produced a thoughtful report. We will be responding to the report in detail very shortly; indeed, my officials are speaking to the Chair of the Committee to make sure she is fully up to speed with how we are handling all this.

Of course it is essential that appropriate provision is made for the energy from waste plant, and I think that provision should be funded by the airport as part of its work. I do not see why the taxpayer should bear the cost. I assure my hon. Friend the Member for Windsor (Adam Afriyie) that the plant and other facilities, and the communities around the airport, are very much on my Department’s mind as we take these matters forward.

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

The Transport Committee report on the national policy statement found that the Heathrow north-west runway proposal has little, if any, advantage over other schemes, or even over doing nothing at all, for passenger growth or for the number and frequency of long-haul routes, and that the proposal would actually cut international links for non-London regions and would have little economic benefit to the UK, so are the Government pushing ahead with this hugely expensive and environmentally damaging project?

[Chris Grayling]

When I am ready to update the House, I will of course come back to do so in person. The Committee recommended that the Government progress with their work, and it made a number of very helpful and constructive suggestions about elements to be included within that work. I remain absolutely of the view that airport expansion is necessary for the economy of this country. The important thing is that we deliver it in the best possible way for local communities.

[Kelvin Hopkins (Luton North) (Ind)]

May I suggest to the Secretary of State that a much cheaper and more practicable alternative to the Heathrow third runway would be to use the considerable spare capacity and long runway at Birmingham airport by electrifying and upgrading the Chiltern railway line and linking it to Crossrail? This would provide for a fast, direct, non-stop shuttle service between central London and Birmingham airport and would help to solve the south-east airport capacity problem. Will he give serious consideration to this proposal?

[Chris Grayling]

Of course the arrival of HS2, with projected future growth in passenger numbers at our airports, will provide an alternative and will provide for a bit of competition between airports, which is no bad thing. The hon. Gentleman is right about that, but I do not think it is either one or the other.

[Several hon. Members rose—]

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

That is very kind, Mr Speaker. Thank you very much indeed.

Can the Secretary of State confirm whether he will be revising the airports national policy statement in the light of the 25 recommendations from the Transport Committee?

[Chris Grayling]

The hon. Gentleman and I sometimes spar vigorously across the Chamber, but I echo your words to him, Mr Speaker.

If the hon. Gentleman will forgive me, I do not think it is appropriate to talk about our response to the Select Committee report before our response is published, which will happen shortly. I simply give him the assurance that we are taking the recommendations very seriously. I certainly want to see many of the recommendations embedded in our planning as these matters go forward.

[Andrew Bowie (West Aberdeenshire and Kincardine) (Con)]

11. What steps he is taking to improve fishing vessel safety.

--- Later in debate ---

[Anna Turley (Redcar) (Lab/Co-op)]

16. What steps he has taken to prepare UK ports for when the UK leaves the EU.

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

The UK ports sector is in an excellent position to facilitate growth in trade, both from the EU and from other countries, when we leave the EU. Indeed, many of the port operators have exciting plans to do so. Many UK ports have recently invested vigorously in capacity, to handle the largest container ships and to adapt to changing patterns of energy generation. We are seeing investment at crucial ports such as Dover, where the western docks are being developed to enable better use of capacity at the eastern docks to handle ferry traffic.

[Anna Turley]

Teesport in my constituency is going from strength to strength. It handles 5,000 vessels a year and more than 40 million tonnes of cargo. It is a gateway to the world, but especially to Europe, our largest trading partner. Will the Secretary of State guarantee that Brexit will not result in trading barriers and customs checks, or in lorries queuing down the A66?

[Chris Grayling]

The Prime Minister has been absolutely clear that this country is committed to frictionless borders. Teesport is doing a great job; I saw some of the firms that operate at the port only recently. That is one reason why I have announced the study into the potential reopening of the Skipton to Colne railway line, because one thing we lack for ports such as Teesport and, indeed, Liverpool, is better freight connections across the Pennines. Every time I talk to the port operators, that is top of their list.

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

One of the Brexit myths is taking control of borders, yet the Secretary of State continues to say that there will be no further checks on transport at ports. Is that just because he does not have a clue about how the Government can put in place a system that allows checks to be made but does not cause carnage on the roads round about the ports?

[Chris Grayling]

No, I am afraid it is because the hon. Gentleman does not understand how ports operate today. It is not necessary to stop every lorry at a border—indeed, every lorry is not stopped at the border—to have a free flow of trade. Countries inside the European Union and countries that have no connection with the European Union manage to operate a free flow through ports and across borders, and that is what we will do after we leave.

[Mr Speaker]

I call Clive Efford.

--- Later in debate ---

[Bob Blackman (Harrow East) (Con)]

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

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

Before I answer my hon. Friend’s question, it might be appropriate for the whole House to express our thanks to all of the transport workers who were involved in the planning and delivery of a smooth journey to and from Windsor last weekend for the royal wedding. It was a very smooth operation and it went gratifyingly well on what was a fantastic day for the country.

[Bob Blackman]

Drivers on the Jubilee and District lines are threatening all-out strikes on 6 and 14 June, bringing misery to literally millions of Londoners. Will my right hon. Friend join me in condemning this action, which will put the passengers and commuters of London in a desperate plight, and call on the Mayor of London to intervene to stop this strike?

[Chris Grayling]

In my view, there is never a justification for industrial action causing that degree of disruption to the lives of individual passengers and of other workers. It is not fair on them; it is the wrong thing to do. Disputes should be solved through means other than strike actions on our public transport system. However, I do remember being informed on regular occasions by the Mayor of London, when we had the troubles on Southern, that he would be much better at coping with these things because there would never be a strike on his watch. He has already broken that one, because he has had them already. It looks like he will have some more.

[Andy McDonald (Middlesbrough) (Lab)]

This week’s timetabling debacle is characteristic of all that is wrong with the railway. The Secretary of State told the press yesterday, and not this House, that Northern Rail issues were his top priority and that he would improve train driver rostering and driver recruitment to improve things, but he cannot simply tinker with rosters and pick new train drivers off a shelf. Does he not realise that it takes a year to train a driver and that roster changes have to be worked through, with the workforce, well ahead of their introduction?

[Chris Grayling]

First of all, the hon. Gentleman has not been following things too closely, because my recollection is that when I was in this House yesterday afternoon I expressly talked about the issues with the timetabling.

Secondly, Northern does not have a shortage in overall terms of drivers. The problem has been caused by the operational difficulties that resulted from, first, Network Rail’s failure to deliver the electrification to the schedule that was expected on the line to Bolton, and, secondly, from Network Rail’s failure to finalise timetables in time. That has been the prime reason for disruption, which was not helped, I might add, by an unnecessary work to rule by one of the unions.

What has happened has been unacceptable for passengers, but I also remind the hon. Gentleman that this is the most devolved franchise in England. The management of the franchise is shared by my Department and northern leaders through Rail North, so it is not simply a question of my Department. I will be working now to see whether Rail North together has done enough of a job in monitoring these problems.

[Mr Speaker]

I do not wish to be unkind to the Secretary of State, and he has certainly given us very full information, but let me say this. I gently chided the Minister next to him, the hon. Member for Wealden (Ms Ghani), for a mildly lengthy reply to one question, but he seems determined to outdo her. It is not a competition. Their replies are extremely informative, and I thank them for that, but we do not have unlimited time, although I do try to extend the envelope.

[Andy McDonald]

Northern Rail issues may be the Secretary of State’s top priority, but what about the long-suffering passengers on Thameslink and Southern? This is the fault not of 400 hard-working timetablers, but of train companies that do not have enough drivers with the right knowledge in the right places at the right time. Is it not the case that these train companies have had years to prepare for this and that this Secretary of State simply trashes the hard-working men and women across the industry who strive to deliver rail improvements? He simply throws them under the bus.

[Chris Grayling]

If I am not mistaken, the hon. Gentleman has just trashed the hard-working men and women of the train companies, who are trying to do a decent job for passengers; he cannot have it both ways. I am afraid that this is a problem with Network Rail, and I have said that it cannot happen again. We have now had the late delivery of the timetable twice in six months. It is not what I would have expected to happen at this moment in time, with such a big, complex change. None the less, it is happening because we are running vastly more trains to more destinations. New trains have been running this week, and there are people getting on trains this week who have a seat for the first time in four years. That is a good thing.

[Robert Courts (Witney) (Con)]

T3. May I impress on Ministers the urgency of upgrades, including redoubling, to the Cotswold line? Will Ministers commit to working with me to ensure thatWest Oxfordshire sees those upgrades, which it so badly needs?

--- Later in debate ---

[Peter Heaton-Jones (North Devon) (Con)]

A week ago today, the Government announced funding of £83 million for improvements to the north Devon link road. [Hon. Members: “Hear, hear!”] Indeed—hear, hear. I thank the Minister for that decision. Will he join me in congratulating Devon County Council on the brilliant bid that has got this funding?

[Chris Grayling]

I am really grateful to Devon County Council for the work it has done. I am also very grateful to my hon. Friend for the arguments that he has brought forward about why this should be a priority. It is a sign of this Government’s commitment to the south-west of this country, where we are delivering actual projects that are really essential to local infrastructure and that are long, long overdue.

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

T8. This week we were expecting the tender document for the east midlands rail franchise. It has not been forthcoming. When can we expect it, and will it promote investment in the service, including improved services on evenings and weekends?

[Chris Grayling]

We are just finalising this. I do not know if we have made an announcement on when it is going to come out, but it will come out very shortly. The midland main line is going through the biggest modernisation programme since the 1870s. The hon. Member for Nottingham South (Lilian Greenwood) referred to the question of timetable changes. There have been a number of difficult timetable changes, both in the London area and further up the line. However, this is all paving the way. When this route is completed properly in 2020, when we will have new trains, the railway will be much better than it has been for a century.

[Nigel Huddleston (Mid Worcestershire) (Con)]

What consideration has been given to breaking off the North Cotswold line into a stand-alone franchise once the GWR franchise comes to an end?

--- Later in debate ---

[Tom Tugendhat (Tonbridge and Malling) (Con)]

Thank you, Mr Speaker, for your indulgence—you have been very kind indeed.

However, one thing that has been less kind to us, sadly, is the timetable changes on GTR and Southeastern. Many people in the constituency I have the privilege to represent, and indeed many in neighbouring areas, are commenting on the lack of capacity taking people into London in the morning and home at night to West Malling, Kings Hill and other places on the Maidstone East line. What will the Government be doing to increase capacity to get in and out of London for these valuable people?

[Chris Grayling]

I can assure my hon. Friend that there has not been a change to capacity on the Maidstone East line. Some trains on the new timetable are faster and some are slower, but in overall terms the services will continue to deliver for passengers. Right now, as I explained to the House a little while back, we clearly have initial problems with the new timetable. This is the biggest logistical change that the railways have made for a very long time. My Department is working very closely with all those involved to try to get this sorted out as quickly as possible. But this is all about delivering more services, longer trains and new destinations across the south-east, and once it is bedded in, I think that passengers in his constituency and elsewhere will see the benefits.

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

Will the Secretary of State update the House on his invitation for proposals on a southern rail link to Heathrow? This is of great interest to families and businesses in my constituency, with the potential for a direct rail link from Waterloo to Heathrow via Feltham.

[Chris Grayling]

That is very timely, because after this Question Time session I am going to meet a number of organisations that are interested in participating in this project. As the hon. Lady knows, we are going to deliver a massive improvement to service access around Heathrow. Western access will be delivered through the control period 6 process, and I aim for southern access to be a privately funded project. This has enormous potential to link not just Waterloo to Heathrow but to link parts of the south-west network through Heathrow on to Paddington.

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

As my right hon. Friend will know, 2018 is the Year of Engineering. As my local contribution to that, I am organising an engineering showcase in Basildon town centre on 14 July. Will he encourage other Members to consider doing a similar thing in their own constituency? May I also invite him to come and join us to celebrate all the fantastic engineering going on in Basildon?

[Chris Grayling]

I am really grateful to my hon. Friend for the work he is doing as our ambassador for the Year of Engineering. He is a tower of strength in making this a successful year. We have hundreds of firms involved around the country, and I encourage other Members to take advantage of what he is doing and to lay on an event for new students in their constituency this autumn, as I will. This is a great opportunity to unite the whole House in saying that engineering is a great profession and we need more young people to go into it.

[Mr Dennis Skinner (Bolsover) (Lab)]

Approximately two months ago, I asked the Secretary of State for a meeting with the Newton people who, because of HS2, are going to see more than 30 houses knocked down in their small village. Has the meeting been arranged yet?

--- Later in debate ---

[Mr Speaker]

I note that, and I think that it will be on the record.

[Chris Grayling]

I do not think the hon. Gentleman’s office has been in touch.

[Mr Speaker]

I am sure the matter will be sorted out erelong; I very much hope it will.

[Bill Grant (Ayr, Carrick and Cumnock) (Con)]

Network Rail is responsible for Ayr railway station in my constituency, which has important links with Stranraer and Glasgow. The functionality and passenger safety at that station is under threat due to the derelict state of the nearby Station Hotel, which is privately owned. May I urge my right hon. Friend to encourage Network Rail to seriously engage with the owners of that hotel and the local council, to avoid a catastrophic event at Ayr railway station?

[Chris Grayling]

First, there is no question but that we are very happy to have a meeting between Ministers and the hon. Member for Bolsover (Mr Skinner). If his office gets in touch, we will sort that.

On my hon. Friend’s question, I would like to find out a bit more detail, because clearly we would like to ensure that that problem does not exist. If he provides a bit more detail to myself or my hon. Friend the rail Minister, we will get on to the case.

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

The recent court case that found the collection of tolls at the Mersey crossing unlawful has afforded Ministers an opportunity to pause and review the operation of those tolls, which are hated across my region. Will they take that opportunity and review the tolls?

[Paul Masterton (East Renfrewshire) (Con)]

Residents in Uplawmoor are currently campaigning against proposed airspace changes at Glasgow airport. I very much welcome the Department’s decision to move that process on to the new Civil Aviation Authority guidelines, but does the Secretary of State agree that it is vital that airports carry out meaningful consultation with affected communities and do not try to bamboozle and bludgeon them into submission with technical jargon that they cannot understand?

[Chris Grayling]

I absolutely agree with my hon. Friend. The management of airspace and flight paths is extraordinarily sensitive for local communities. Airports that engage well have a much easier time, and those that do not engage properly pay a price. I agree that community engagement is really important.

[Ronnie Cowan (Inverclyde) (SNP)]

When the east coast railway franchise is once again open to bids, will the bidding process include a prosperity weighting clause, in keeping with proposals for some defence contracts?

[Chris Grayling]

When we form the London North Eastern Railway in its final form, as I have said, it will not be a conventional franchise bidding process. It will move to a completely new approach, as I set out in my statement earlier this month, and we will bring more details to the House about the shape of that in due course.

[Kevin Foster (Torbay) (Con)]

I know the Secretary of State shares my excitement about the fact that in July we will see the first new Hitachi trains on a booked service west of Taunton. Will he update us about the wider progress being made with the new Great Western franchise, particularly about the idea that it may be split?

[Chris Grayling]

I have now got back the responses to the consultation, and I am carefully considering my response to them. I give my hon. Friend an assurance that I have a fairly clear message from the people who responded, and I will take that view very carefully into account in how I take this forward.

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

When will the Government stand up for small towns in the shires of this country? While the cities get new trains and powers over bus services, the small towns in the heartlands, such as Lancashire, get nothing. This Government do not seem to care about small towns.

[Chris Grayling]

It is nice to finish with a degree of hokum from the Opposition. Lancashire has benefited, for example, from the Heysham relief road—connecting two smaller centres in a way that is absolutely vital if we are to unlock parts of the economy—and, starting later this year, all the small towns in Lancashire are getting new trains. Once we have bedded in the timetable and overcome these infuriating problems, the Northern Rail franchise will deliver more services in Lancashire—and, indeed, in Copeland, where my hon. Friend the Member for Copeland (Trudy Harrison), who has now gone, had the pleasure last weekend of travelling on the west Cumbria line’s first Sunday service in decades.

[Mr Speaker]

That is very useful to know. Thank you.

Transport Secretary: East Coast Franchise

Chris Grayling Excerpts

Wednesday 23rd May 2018 Commons Chamber

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

What a lot of incoherence from the Labour party and the hon. Member for Middlesbrough (Andy McDonald)! Who does the hon. Gentleman think runs the railway today except rail professionals? It is a nonsense.

What we also have seen today is a classic example of the definition of the word “hypocrisy”. This morning, the Welsh Labour Government announced their plans for what will be a public-private partnership to develop a new metro service on the Welsh valley lines. This afternoon, the Labour party at Westminster is trying to censure me for announcing a public-private partnership to improve services on the east coast main line. That says a great deal about what the Labour party has become.

[Several hon. Members rose—]

[Chris Grayling]

I will give way in a moment; let me make a bit of progress first.

I am not going to go through, line by line, the process that I have been undertaking in the past few months to reach what I believe is the right position for taxpayers, passengers and employees, but I have been struck by how little Labour Members understand about the way in which such a process must be managed, and how little they appear to understand the financial structure of franchising, rail laws, or the fact that the Government have to operate within the legalities of contracts and other laws.

I believe that, when confronting a failing franchise, the Government have three duties. The first is to ensure that any transition to a new arrangement is smooth and trouble-free for passengers. That was why we engaged an operator of last resort team in the autumn, meaning that, if necessary, they would have plenty of time to plan a smooth takeover. The team registered the name and prepared the website so that they would be ready if this situation arose. That is good practice.

The second of the duties is to ensure that the failing company fulfils its contract with the Government. If I had moved to make this decision months ago, the operator of last resort would not have not been ready and, moreover, I would have left taxpayers short-changed—they would have been given back less money than they should have been. When this contract ends, the taxpayer will have recovered all the money that it is possible to recover under the terms of the contract. That is a key duty of the Government in such a situation.

The Government’s third duty is to act according to due process, to be seen to assess all options properly, and to ensure that they have proper legal protection against any challenge to the decisions that I make. In the last few months, the Department has ensured that all those duties have been fulfilled, and I am grateful to all the members of the team who helped me to make that happen.

[Mr Stephen Hepburn (Jarrow) (Lab)]

The Secretary of State mentioned the Welsh railways, but the motion is not about the Welsh railways; it is about the east coast main line, which has gone bust three times in less than 10 years. The Government are still obsessed with financing the private sector through taxpayers and railway users, whose fares have gone up by more than 32%.

[Chris Grayling]

I will tell the hon. Gentleman what the motion is about: Labour Members saying one thing in one place and doing something else in another. Why should we take them seriously when they do that?

[Alec Shelbrooke (Elmet and Rothwell) (Con)]

Is there not a much bigger problem with the Labour party’s policy of nationalisation? Labour Members are trying to keep us in the single market, but the state aid rules within the single market mean that we cannot nationalise.

[Chris Grayling]

That is absolutely true. The irony is—I shall say more about this later—that it is the rail unions that have been campaigning against the same European laws that the Labour party wants to keep. This is another example of Labour’s nonsensical position.

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

Will my right hon. Friend amplify something that he hinted at earlier? Will he confirm that he sees the Government as an interim operator of last resort and that this is not a permanent renationalisation?

[Chris Grayling]

I do not intend that the arrangement will be permanent. What I am saying—I have said this all along—is that when we move ahead with the full future shape of the LNER, we will not do everything in exactly the same way. What has been done on this railway in the past has not worked, and I do not intend to do it again. We will do things differently. We will consider giving the staff a stake in the business, and we will look at a different kind of investment from the private sector. However, as I shall make clear, I believe—the Welsh Government clearly believe—that a partnership between the public sector and the private sector is beneficial to the country, and not something to be cast aside as an evil and sinister attempt to do down passengers.

[Ian Mearns (Gateshead) (Lab)]

Will the Secretary of State give way?

[Chris Grayling]

I will give way once more, and then I will make some progress.

[Ian Mearns]

I am very interested by the comments that are coming from behind the Secretary of State. It is clear that he is in favour of state ownership of UK railways; the only problem is that it is German, Italian and French state ownership.

[Chris Grayling]

It appears that the Welsh Government—the Welsh Labour Government—take the same view, because they have just awarded the contract for the Wales & Borders franchise to a French state business in partnership with a Spanish-owned private business. Again, the Labour party says one thing in one place and does something else in another.

What we have heard from Labour in the last few months has been a litany of misinformation, misunderstanding and inaccuracy. Let us take the bail-out point. Labour Members claim that there has been a £2 billion bail-out. That is just plain nonsense. It is wholly inaccurate to claim that there has been a bail-out now, when the railway will continue to make a healthy profit for the taxpayer. It would equally be inaccurate to claim that Labour had bailed out National Express when it did not push through nearly £1.5 billion of future premium payments after 2009. The railway carried on making a profit then, and it will carry on making a profit now.

[Andy McDonald]

Had the franchise run its full term, would the Secretary of State have expected Virgin Trains East Coast to pay the full £3.3 billion in premiums?

[Chris Grayling]

Any franchise that runs its full term is expected to pay the full premiums, but when National Express went under and there was a further £1.5 billion of premiums to pay, that money continued to be paid by the new operator, in the same way that the premiums that we are expecting will continue to be paid by the operator in this instance. This is my point: the hon. Gentleman does not understand how the finances of the railways work, and that is why the Labour party is so unfit to be in opposition, let alone to govern.

[Grahame Morris (Easington) (Lab)]

rose—

[Lilian Greenwood]

rose—

[Chris Grayling]

I will give way first to the hon. Member for Easington (Grahame Morris) and later to the Chairman of the Transport Committee.

[Grahame Morris]

I am grateful to the Secretary of State. I hope that he will clear up that point about the last Labour Government and National Express. As a member of the Transport Committee, I heard a former Transport Secretary, Lord Adonis, explain that sanctions had been applied and that that particular operator was not permitted to bid for other franchises, which was a significant sanction.

[Chris Grayling]

If I am not mistaken, Lord Adonis actually accepted before the Select Committee that that did not happen. He thought that standing up in Parliament and saying that there would be a ban meant that there actually was one. I assure the hon. Gentleman that my Department looked very carefully at this and no evidence of any ban has been found. Moreover, a report from the National Audit Office stated that it had found no such evidence.

[Huw Merriman]

I was at the same Select Committee sitting. Of course, in the year following those events, the Labour party left office. What did happen at the time was that the then Secretary of State said that National Express would be stripped of other franchises, but of course that did not occur—I dare say that that could not happen legally—and the two franchises remained the same.

[Chris Grayling]

My hon. Friend is right. It is all very well Labour Members posturing, but we do have to operate within the law of the land, which is a fact that they sometimes miss.

[Lilian Greenwood]

rose—

[Julian Knight (Solihull) (Con)]

rose—

[Chris Grayling]

I will take two more brief interventions, but then I must make some progress.

[Lilian Greenwood]

I want to deal with the loss of premium payments. According to the Secretary of State’s own “Short-term Intercity East Coast train operator 2018 options report”,

“the business revenues are estimated to reach around £2bn over the period of interim operation and the forecast income or premium for taxpayers is estimated at around a quarter of a billion pounds.”

That is about £420 million less than had been anticipated under the VTEC contract. Who will fund that black hole in the Government’s finances? Will it be taxpayers or will it be passengers? Will the Secretary of State have to cut other departmental budget lines, or has the Chancellor agreed to bail him out?

[Chris Grayling]

I am grateful to the hon. Lady for confirming that the talk of a £2 billion bail-out that we keep hearing from Labour is absolute nonsense. The reality is that we will drive this business as hard as we can to keep the revenues as high as we can. But if this railway were going to deliver as much money as was forecast, none of this would have happened in the first place.

[Julian Knight]

I thank my right hon. Friend for giving way; he is being most generous. He is forensically taking apart the Opposition’s case. Was he struck, as I was, by the fact that the hon. Member for Middlesbrough (Andy McDonald) did not even mention the cost of renationalisation? Across the board, the renationalisation of the utilities and the railways would cost more than £170 billion, and that is money that we simply cannot afford to spend.

[Chris Grayling]

My hon. Friend makes a good point. The Opposition never cost in their renationalisation plans the value of the trains that are currently privately owned, for example. That amount would be billions and billions of pounds, unless they are planning to nationalise the railways but have no trains to run on them, which is also a possibility.

[Several hon. Members rose—]

[Chris Grayling]

I am going to make some progress. I will want to talk about a couple of other issues, for the benefit of the House, but first I want to be clear about what the debate is all about.

The Labour party, in its guise here today, unreservedly hates the private sector. Other parts of the party do not, however. Even Lord Adonis, who has been attacking me for months, said yesterday that he thought that the franchising system was working well. I do not necessarily agree with him on that. I think that some serious changes are going to be needed, as I have said in the House before, but the solution is not to go back to where the French are today. President Macron is trying to move things away from the model that the Labour party is advocating, which would be disastrous for this country. Labour’s vision for the future of transport in our country is precisely the opposite of President Macron’s. When a country has a system that is struggling, losing money and closing routes, Labour’s vision is not the way for the future.

[Several hon. Members rose—]

[Chris Grayling]

I am not going to give way at the moment.

I will take no lessons from a party that says that it wants to dismantle capitalism and create a socialist society that looks fondly towards the disaster that has been Venezuela. Madam Deputy Speaker, did you hear the shadow Chancellor talking at the weekend about his vision for a socialist Britain? This is a man who does not even believe in private property. That would be disastrous for this country, and we must stand up very firmly against an ideology that would damage this country—[Interruption] Opposition Members talk about where investment comes from, but they do not understand that if the railway is in the public sector, that means it has to compete for precious capital day in, day out, and year in, year out, with other parts of the public sector—the health service and the education system. The reason why right now we have knackered old trains in the north of England—the Pacer trains that were no more than bus bodies bolted on to train wheels in the days of British Rail—is that British Rail, in the public sector, did not get the capital to invest properly, and that would happen all over again.

I am going to keep my remarks brief, because many Members want to speak. However, I do want to say a quick word about this week’s timetable issues on the railways, since the shadow Secretary of State raised them and they are of great concern to Members.

What we have seen in the last few days has not been good enough. No one should underestimate the logistical challenge of introducing a timetable change. The changes have been made for a very good reason: they mean a big expansion of services across the country. A timetable change of such a scale involves reorganising staff rotas, training staff for new routes, and reorganising how we deploy our trains. It needed months of preparation, and I am afraid that a number of things went wrong, but most particularly the fact that for the second time in six months, Network Rail was far too late in finalising planned timetable changes and left the rest of the industry struggling to catch up. I am not happy with that at all and I have told the leadership of Network Rail that it cannot happen again. But it is perhaps an uncomfortable truth for Labour Members, who keep talking about current problems as an excuse for nationalisation, that the problems that have arisen in the last few days are, to a significant extent, the result of failings in the nationalised part of the rail industry.

I know that many passengers have had disrupted journeys; that is not good enough. I am sorry that that was the case, and everyone in my Department and people elsewhere are working hard to get the problem sorted out. But this has been a major teething problem in what will be a step forward for the railways. Even with the unwanted cancellations, at the start of this week far more services were running than before the timetable change happened.

I know that some people have experienced change that they are not happy with. We cannot deliver everything for everyone, but this is going to mean better journeys for thousands of people up and down the country.

[Mr Kevan Jones (North Durham) (Lab)]

The right hon. Gentleman blames Network Rail for these problems and calls it a nationalised part of the railways, but he must remember that he is the Secretary of State. One of the main problems was the lack of consultation with the wider travelling public, or for that matter with many local Members of Parliament or local authorities.

[Chris Grayling]

There is a certain irony in Labour Members keeping on saying that they do not think I am competent and they do not think that the Department is competent, yet saying that they want to take a greater role in running a nationalised railway. That does not add up—it is a great contradiction—and the idea that they would be any better at it is for the birds.

The issue has arisen because of late delivery of the finalised timetable. That has created huge logistical problems, and two things have made them worse in the north. One is the fact that the electrification project on the Bolton line has gone wrong, which needs to be learned from very carefully indeed—[Interruption.] I do not electrify the railways personally. Secondly, there is the behaviour of the unions, which are currently, in the midst of a difficult period, going forward with work to rule in a way that is deeply regrettable.

[Several hon. Members rose—]

[Chris Grayling]

I will give way, but then I shall wind up my remarks so that others have a chance to speak.

[Stephen McPartland (Stevenage) (Con)]

I have been experiencing some of these teething problems due to the new timetable in Stevenage. There continue to be issues, but we are looking forward to more seats, more services and more destinations. I was on a train today from Stevenage. I had to get off at King’s Cross, but it went through to Gatwick and then on to Brighton, so we are excited about the prospects.

We are very proud to have the east coast main line stopping at Stevenage. We would like more services, but we cannot forget the passengers. They do not care whether ownership is private, mutual or public—they just want things to work. I am grateful that the Secretary of State has stepped in to try to make that happen.

[Chris Grayling]

That is the most important thing. It is why we are pushing forward with the integration of track and train to make the railway more reliable, and it is why we have a strategy to bring in digital technology to improve the performance of the railway. It is also why, for the first time in a long time, we are investing in significant extra capacity across the rail network.

We sat in opposition looking at things that needed to be done but just did not get done, but now we are in government, they are happening. Last week the fantastic new London Bridge station opened. In the summer, I will be in the midlands to open the new Kenilworth station. In July, I will be opening the expanded Liverpool Lime Street station. These are big and positive steps forward for the railway.

In total, over the next five years, we will be investing £20 billion on renewing the current infrastructure and another £9 billion on further enhancements, including the flagship trans-Pennine rail network. We are building HS2; we will shortly be opening Crossrail; we are just opening the Thameslink tunnels through central London; and we have done the Ordsall chord in Manchester. [Interruption.] The £2.9 billion trans-Pennine rail upgrade will begin in the spring of next year and make a massive difference to passengers.

The thing that passengers will probably notice the most, however—this is being funded by the private rather than the public sector—is all the new trains that are arriving. Every single train in the north of England is being rebuilt, starting from later this year, with all the Pacer trains going to the scrapyard, and every train in East Anglia. The new trains asked for by Opposition Members are arriving on the east coast main line later this year, and new trains are coming to the south-west, the midlands and the south. There will be new trains across the whole country because this Government are investing in our rail network. This Government want to give a better deal to passengers, and this Government are going to do what works. All we hear from Labour Members is ideology from a party that cannot quite work out what it is actually talking about, and I think we have one big job for this country: make sure they never get anywhere near government.

[Several hon. Members rose—]

--- Later in debate ---

[Alan Brown]

I agree, and I think that the Government are now looking at northern because it is yet another failing franchise—another sign that the current system is just not fit for purpose.

I go back to the problems with the southern franchise. The NAO report makes it clear that the Department for Transport’s responsibility was large, especially for access to the network and timetabling pressures. Such errors led to an additional £60 million being allocated from the Treasury, following a loss in revenue and other costs. Again, all that happened on this Transport Secretary’s watch.

[Chris Grayling]

I do not want to deflect attention in any way, but may I remind the hon. Gentleman that that franchise was not set up while I was Secretary of State?

[Alan Brown]

I am happy to accept that, but all the current problems are happening under the Secretary of State’s watch. He has refused to get involved in trying to resolve the disputes to move things forward. I accept the fact about when it was set up, but he could have been stronger in his leadership and his interventions instead of letting things rumble on.

Another issue that I have with the Secretary of State’s overall competence is his dogmatic refusal to devolve Network Rail to Scotland. The organisation is clearly too big, and it has a bad reputation for delays and overspend, so why would he not want to take the opportunity to devolve it, allowing the Scottish Government to take full responsibility? It has been estimated that a unified management structure could save up to £100 million a year, and that alone should appeal to a Tory Secretary of State, so I just do not understand his dogmatic refusal to engage.

Then there is his lack of engagement with the Scottish Government about the funding for control period 6 in Scotland. The allocation is way less than his regulator recommended for track maintenance and growth in Scotland’s railways. Why is he being so obstinate in refusing to meet the Scottish Government or to consider what might be a fair funding settlement? We also had the recent railcard fiasco. The autumn Budget included the announcement of a discounted railcard for 26 to 30-year-olds, except the Treasury did not put any money into the scheme. In answer to a written question, I was told that the rail industry would pay for it itself, but that was done without discussions with the industry so, lo and behold, the scheme is in chaos. Who would have thought it? Again, that happened under this Secretary of State’s watch.

The Transport Secretary’s slash-and-burn attitude to rail electrification projects and the short-sighted selection of hybrid engines will lead to continued diesel pollution. He has also so far refused to fund or consider meaningful upgrades to the west coast main line north of Crewe. The way that high-speed rail will be implemented means that journeys between Scotland and Crewe will take longer on high-speed trains than they take currently with Virgin Trains, so we need further investment north of Crewe.

I will deviate from rail slightly before I finish. The Transport Secretary’s incompetence is summed up by his proclamations that there will be no border checks post Brexit. The suggestion is that lorries will not be stopped—just like on the US-Canada border—but that just shows that he does not have a grasp of his brief. That is why I am more than happy to support the motion.

East Coast Main Line

Chris Grayling Excerpts

Wednesday 16th May 2018 Commons Chamber

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

Mr Speaker, I would like to make a statement about the future of the east coast main line. As was made clear in the point of order that we have just heard, it has been quite important to try today to handle the release of this information in as controlled a way as possible. We did, of course, approach the Opposition earlier this morning, and explained how we were going to communicate the information to them. My officials shared this statement with the Opposition parties shortly after 12 o’clock, at approximately the same time that Stagecoach was itself told about this—both would expect to be given warning of what is a significant and, for them, market and price sensitive announcement.

Let me set out what I have to say today. The House will recall that, back in November, I set out details of our rail strategy, and our plans to integrate the operation of track and trains. I also indicated that one of the key parts of that plan was to address what were then well-documented problems on the east coast main line by creating a new, integrated rail operation on that route.

In February, I gave the House an update on the financial problems on the east coast main line, and indicated that the current franchise would run out of money within months. This is not because the route is failing—it continues, and will continue, to generate substantial returns for the Government, and the most recent figures show passenger satisfaction at 92%. The route has its challenges, but it is not a failing railway. However, as I explained in February, Stagecoach and Virgin Trains got their bid wrong and they are now paying a price. They will have lost nearly £200 million meeting their contracted commitments. This means that taxpayers have not lost out because revenues are lower than predicted; only Virgin Trains East Coast and its parent companies have made losses at this time.

As the Brown review said in 2013, in an effective railway industry franchises can occasionally fail. But we do not, and cannot, expect companies to hold unlimited liabilities when they take on franchises—they would simply not bid for them if they had to. This means that franchises sometimes do fail, which is why a Conservative Government previously created the structures for the operator of last resort to ensure that we can always guarantee passenger services if franchises cannot continue.

In my statement in February, I said that I was considering two options to continue delivering passenger services in the run-up to the creation of the new east coast partnership. The first was to permit Stagecoach to continue to operate the railway on a not-for-profit basis until 2020, and to permit it to earn a performance-related payment at the end of its contract. The alternative was to implement an operator of last resort, bringing the route back into the temporary control of my Department, as provided for in legislation. Last autumn I established a team to prepare this as an alternative to use if required.

In the past two months, my Department has carried out a full analysis of these options, focusing on how each performs against the key principles that I set out in February: protecting passenger interests; ensuring value for money for taxpayers; and supporting investment and improvement in the railway. I am today publishing my Department’s assessment. To summarise, the analysis suggested that the case was very finely balanced, with some elements favouring a contract with the existing operator and others favouring the operator of last resort. When judged against my key principles, neither option was obviously superior. I have, however, taken another factor into account. I want to make the smoothest possible transition to the creation of the new east coast partnership. Given this finely balanced judgment, I have taken into account broader considerations and decided to use the current difficulties to drive forward sooner with our long-term plans for the east coast partnership.

I have decided to begin the transition process towards creating the new partnership now. This will be in the long-term interests of passengers, as every member of staff on the railway will be focused solely on delivering an excellent service for the future. I am therefore informing the House that I will terminate Virgin Trains East Coast’s contract on 24 June 2018. I plan to use a period of operator of last resort control to shape the new partnership. On the same day, we will start with the launch of the new, long-term brand for the east coast main line through the recreation of one of Britain’s iconic rail brands, the London and North Eastern Railway.

The team that have been working for me since last autumn to form the operator of last resort will take immediate control of passenger services, and will then begin the task of working with Network Rail to bring together the teams operating the track and trains on the LNER network. I am creating a new board, with an independent chair, to oversee the operation of the LNER route. The board will work with my Department to build the new partnership. It will have representatives of both the train operating team and Network Rail, as well as independent members, who importantly will ensure that the interests of other operators on the route are taken into account. I will appoint an interim chair shortly, and will then begin the recruitment process for a long-term appointment.

When the new LNER operation is fully formed, it will be a partnership between the public and private sectors. In all circumstances ownership of the infrastructure will remain in the public sector, but I believe that the railway is at its strongest when it is a genuine partnership between public and private. The final structure of the LNER will need to be shaped in conformity with the primary legislation that governs the industry, but my objective remains to move to a situation that leaves one single team operating the railway, with the simple goal of ensuring that they continue the work of the existing operators in improving services for passengers.

The rigorous process that we have followed underlines our commitment to ensuring that businesses operate under firm but fair rules. This Government are willing to take tough decisions when necessary to ensure that we build a stronger, fairer economy for all. I do not want these changes to cause passengers any anxiety at all. I want to reassure them that there will be no change to train services, the timetable will remain the same, tickets purchased for future travel—including season tickets—will continue to be valid, and customers will continue to be able to book their travel in the normal way. The ambitions that we have for services will also continue.

I want to reassure staff that the changes will not impact on their continued employment. It will be no different from a normal franchise change. Indeed, I want the LNER to have employees at its heart, so I am instructing the new board, working with my officials, to bring forward proposals that will enable employees to share directly in the success of the LNER as a pure train operator and subsequently as the new partnership. I am pleased to announce that Andy Street, the Mayor of the West Midlands and the former chief executive of John Lewis, has agreed to provide the team with informal advice about how best to achieve this.

I have already set out my plans to restructure the Thameslink, Southern and Great Northern franchise, following the successful delivery of the Thameslink programme. I have indicated that we will separate it into two or more franchises after the end of the current contract in 2021. We have not yet reached a decision on how to operate Great Northern services. However, I have had initial discussions with the Mayor of London about the possibility of transferring some of these to London Overground, as recommended in Chris Gibb’s report. Any change will be subject to consultation, but there is also an operational case for integrating Great Northern services from King’s Cross into the new LNER operation. I am asking my officials and the new LNER board to do feasibility work on this option.

I have also taken official advice about the future of the passports currently held by Virgin Holdings and Stagecoach, determining whether they are fit and proper to operate on our railways. A multidisciplinary panel has considered the situation and recommended that both companies continue as train operators. The panel advised that there is no suggestion of either malpractice or malicious intent in what has happened. Clearly we have to be vigilant about future financial commitments, but in my view those organisations have paid a high financial and reputational price for what has happened. This Government operate firm but fair rules in their dealing with business, and I have been advised that it would not be reasonable to remove or place conditions on the companies’ passports. However, this decision is provisional and will be subject to further review at the point at which the VTEC contract is terminated.

It is vital that we remember the benefits that the railway has seen since privatisation. Passenger numbers have doubled. New trains with new technology are being rolled out right across the network. Innovation has driven up passenger satisfaction. We are seeing a huge amount of private investment in the future of our railway, and the lessons of the financial failure of the east coast main line are already being, and must continue to be, learned. But our ambitions are bigger.

In the rail strategy that we published last year, we began to look at the future of the industry in order to make the private sector model fit for changing travel patterns and new technology, and to focus on a better quality passenger experience. These advances would not be possible if we returned to nationalisation and lost private sector innovation. This work will conclude in time for the spending review to ensure that we improve how we enhance the private sector drive to improve services for passengers in the coming years in a way that is fair for taxpayers and passengers.

Of course, the passengers on the east coast main line are the most important people in all this, and 92% of them say that they are happy with their travel experience. The steps I have put in place today will help to deliver even more for them, with the recreation of one of Britain’s most iconic rail brands; the start of the proper recreation of an integrated regional rail operation; and the arrival of the brand new intercity express trains later this year, the majority of which will be built at Hitachi’s plant in Newton Aycliffe in County Durham, continuing to support 700 jobs in the north-east. I believe that this strategy will set this railway on a path to a better future. I commend this statement to the House.

[Andy McDonald (Middlesbrough) (Lab)]

May I just comment on the point of order made by my right hon. Friend the Member for Newcastle upon Tyne East (Mr Brown)? I was given sight of this statement 30 minutes before I entered this House. I was not given an electronic copy, I was not allowed to take one away and, as I sit here right now, I have still not been provided with a copy of the statement. I consider this absolutely reprehensible. The Secretary of State does this every single time—relying on confidentiality and market sensitivity. Every single time he treats me with contempt, Her Majesty’s Opposition with contempt, and the House of Commons with contempt. It is about time he changed his ways. This is a shameful practice.

Today, the i newspaper reported that the millennial railcard announced in the 2017 Budget has been scrapped because the Treasury will not agree to fund it. In that case, why did the Chancellor announce it? This Government have nothing to offer that age group other than spin and broken promises.

In the past year, the Transport Secretary gifted Virgin and Stagecoach a £2 billion bail-out after they had failed on the east coast main line at the same time as awarding those same companies a lucrative contract extension on the west coast main line. Yet he has the audacity to come to the Dispatch Box and say that it is not reasonable to remove or place conditions on their passport. It is absolutely ludicrous. Three times in under a decade, private companies have failed on the east coast main line. Its only successful period was from 2009 to 2015 under public ownership, when £1 billion was returned to the Treasury. It was the best-performing operator on the network before being cynically re-privatised on the eve of the 2015 general election. The then Secretary of State for Transport said:

“I believe Stagecoach and Virgin will not only deliver for customers but also for the British taxpayer.”

What nonsense! Report after report by the Public Accounts Committee, which described the Government’s approach as “completely inadequate”, and by the Transport Committee detail the failure of the privatised franchising system on its own terms. The Government’s incompetence has been disastrous for passengers and led to misery for millions of people.

We have been here before many, many times, year after year. The Secretary of State and his predecessors have stood at the Dispatch Box and told the House that privatisation is being reformed. We have had reform, reform and reform. We have had bail-out after bail-out. Rail companies win; passengers and taxpayers lose. There is a definition of insanity: doing the same thing over and again and expecting different results. This is the situation we find ourselves in today. Franchising remains at the heart of the alleged partnership. No amount of tinkering can solve the failings of a broken privatised system where the public take the risk and the train companies take the profit, aided and abetted by the Transport Secretary.

Can we really believe anything that the right hon. Gentleman says? Rail investment is promised; rail investment is cancelled. He makes claims about technology despite his civil servants telling him that it does not exist. No one takes his announcements seriously. Every announcement is a smokescreen to divert attention from the failures of his rail franchising policy. The east coast main line is but one vulnerable rail franchise. What about Northern, TransPennine, Greater Anglia and South Western? Will there be bail-outs for operators on those lines who fail to meet their targets?

Let us be clear about the privatised public sector operator of last resort—how ridiculous is that?—on the east coast main line. These companies—multinational Canadian engineering company SNC-Lavalin, Arup, and big-four accountancy firm Ernst and Young—are not running the east coast main line for nothing. This is Conservative-style public ownership—more private profit. Only Labour’s version of public ownership will deliver what the railway needs.

There is a clear solution to the problems on the east coast main line. It was a successful public company between 2009 and 2014, thanks to the previous Labour Government. I am just sorry that the Secretary of State will not accept the stark staringly obvious answer: an integrated railway under public ownership, run for passengers, not for profit.

[Chris Grayling]

The first thing to say is that I could have done what has been done previously and made a stock market announcement at 7 am this morning, and not come to the House first. I actually chose on this occasion to come to the House first to provide the information, albeit price sensitively, in the best possible way. I am disappointed that the hon. Gentleman does not believe that that is a more appropriate way to handle such an issue than making a 7 am announcement to the stock market, as has been past practice.

The hon. Gentleman talks about nationalisation. Let us deal with this issue head on. Labour has spent the past few months desperately trying to take us back into the ambit of the European Union. Let me explain this to him very simply: his policy on rail nationalisation is illegal under European law. It is all well and good Labour Members arguing that we should stay in the single market and have a second referendum and all the rest of it, but his version of nationalisation is not legal under European law, so why would we take him seriously when he talks about this? I am interested in what works, and that is what we are doing with today’s announcement.

The hon. Gentleman harks back to the period of public operation of this railway. During that period, fewer staff were employed, it generated less money for the taxpayer, and passenger satisfaction was lower than it was subsequently. So it was not some great nirvana period. Yes, things were done in a way that moved things beyond the collapse of National Express in 2009, but the performance of the team currently running the railway has been good. It is not their fault that the parent company got its sums wrong. We should pay tribute to the team who work on that railway and say that it is not their fault that I have had to make today’s announcement.

The hon. Gentleman keeps going on about a £2 billion announcement. That is another example of why Labour does not understand any of this, because otherwise he would realise that no bail-out has taken place, any more than Labour bailed out National Express. This railway line is continuing and will continue to make a substantial contribution to the taxpayer. When he talks about a £2 billion bail-out, he does not understand the finances of the railway. It is not true today and it was not true when National Express collapsed. The reality is that this is the best way to take forward what has been a difficult situation on this railway on a path that I believe in and I think the public believe in: it is better to bring back the operation of track and train, and that is what we will do.

The hon. Gentleman raises the issue of the railcard having been scrapped. That would justify his not believing everything he reads in the papers.

[Stephen Hammond (Wimbledon) (Con)]

I welcome my right hon. Friend’s statement. As I understand it, with the formation of LNER there is no bail-out and nor is there any renationalisation, which will be widely welcomed. On the basis that taxpayer value has been protected, will he say what extra investment might be available to LNER, whether there will be opportunities for private sector investment and whether he will open up the line to open-access competition?

[Chris Grayling]

The latter point is really important. We want open access to continue. This line has some excellent open-access operators. The system we are putting in place will do nothing to preclude that from happening. I am very clear that that has to continue and that the interests of both the open-access operators and the freight companies needs to be protected as we take this forward. I assure my hon. Friend that that is what will happen.

I want to continue to see private investment in our railways. The Labour approach would mean that each year the railways were competing for public capital with schools, education and the rest. That is something that Labour Members do not quite understand. The railway gets more investment through a partnership between the public sector and the private sector than ever it would through their renationalisation policy. Going back to the days of decline and failure under British Rail is their way for the future. We just have to look at what is happening in France, where people are desperate to move away from that model because it is not working.

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

Let us go back to 2012 and look at the failed west coast main line franchise. Back then, when Virgin was going to lose out, it was happy to go to court. It ran a public campaign—“Keep Virgin on the west coast”. Oh, how it squealed; we were to feel sorry for it. What happened? Yes, it got a direct award. Returning to the here and now, it gets to walk away from this franchise—no harm, no foul. We do not hear it squealing now. It is an absolutely sick joke. Virgin should not be allowed to bid for future franchises.

On this franchise, it is not just Virgin Trains East Coast that got its sums wrong. We keep hearing about how it got its sums wrong, but that means that the Department for Transport got its sums wrong when it assessed the tenders. Where is the due diligence? What is going to happen within the Department to make sure that it does not make the same mistakes in future? What about the other consortiums that lost out if VTEC got its sums wrong? Do they now have grounds to go to court having missed out because the Government awarded the franchise to a company and now just blithely say, “Oh, it got its sums wrong. Don’t worry about it—that’s what happens with some franchises. They get their sums wrong, and we move on and re-tender.”

Will Virgin and Stagecoach be allowed to bid for the new partnership? That really would be rubbing salt into the wounds of this process. Richard Branson has blamed Network Rail. He says, “It’s not our fault, guv—it’s Network Rail.” What is the truth in this? How much of this problem has been caused by Network Rail, and is that going to be sorted out? Will the Secretary of State please devolve Network Rail to Scotland, so that at least the Scottish Government can take care of these matters in Scotland? The current system cost an extra £60 million last year. He says that this is not a failing railway and that Virgin and Stagecoach are reliable. In fact, what we have is a failing Government.

[Chris Grayling]

If we want to find a failing Government, we just need to look north of the border. I do not plan to devolve responsibility for Network Rail to the Scottish Government because I do not believe the Scottish Government are capable of overseeing it properly. They are messing up education and health in Scotland. They should concentrate on doing the things they already have right before they take on any extra powers.

The hon. Gentleman talks about there being no harm to Virgin-Stagecoach. It has just lost 20% of its market capital. Most people running a business would say that that is a pretty big blow. It is not happy about that, and nor will any of its shareholders be. We have changed our approach since this franchise was let. There are new risk-sharing mechanisms in place. Most recently, we did not accept the highest bid for the last franchise we awarded, and we have to continue to work on this. I have asked my hon. Friend the Minister of State, who is the rail Minister, to work closely with colleagues in the Treasury to identify the best way to ensure that we have the right risk-sharing mechanisms for the future, so that we look after the interests of passengers and the taxpayer.

The hon. Gentleman asks about the new partnership and the bids. This is a completely different paradigm. This is not another franchise bid in two years. We are looking at shaping a different kind of railway, and we will set out plans for that to the House in due course.

[Mr Simon Clarke (Middlesbrough South and East Cleveland) (Con)]

Can my right hon. Friend confirm that all planned investment in the line will continue and that the extension of direct services to Middlesbrough will be unaffected?

--- Later in debate ---

[Chris Grayling]

I have every intention of continuing to meet the commitments to new services in the original VTEC document. The only complication that has arisen is around engineering works by Network Rail and when those take place, but there is no intention to withdraw any future service plans. Most will be able to start on time in 2019. A small number may be delayed beyond that, but that will be for reasons outside the control of the train operator.

[Lilian Greenwood (Nottingham South) (Lab)]

In November 2014, the then Secretary of State promised that the new franchise awarded to Virgin-Stagecoach would run for eight years and return £3.3 billion in premium payments to the taxpayer. He said:

“These figures are robust and have been subject to rigorous scrutiny, including by independent auditors.”—[Official Report, 27 November 2014; Vol. 588, c. 1080.]

The Secretary of State must take responsibility for this serious repeat failure. If Virgin-Stagecoach got its figures wrong, so did his Department, and he should apologise to passengers and taxpayers for that failure. The Transport Committee will be subjecting this failure to detailed scrutiny, but what does the decision today mean for other franchises that we know are struggling to meet their obligations?

[Chris Grayling]

There is no other franchise today in the same position. We are seeing some changed patterns of ridership on the railways. For example, people are choosing to travel to work three or four days a week and work from home one day a week, and we are doing careful work on what that means for the future. As I said, my hon. Friend the rail Minister is working on that very issue and any implications for the future of franchising. The reality, as I keep saying, is that this railway has continued to deliver a higher contribution to the taxpayer and a higher level of customer satisfaction than it did prior to 2014.

[Mrs Anne-Marie Trevelyan (Berwick-upon-Tweed) (Con)]

For the residents of Berwick-upon-Tweed, the east coast main line is critical infrastructure, until the Secretary of State manages to dual the rest of the A1 all the way through. Can he confirm that there will be no disruption and that my constituents will be able to continue using what has always been an excellent train line?

[Chris Grayling]

I can give that commitment. I hope that it will become an even more excellent train line, though passengers may be tempted away, as tomorrow I will do the formal opening of the last link of motorway-grade road between London and Newcastle—something that should have happened a long time ago but did not happen in the 13 years when the Labour party was in power. It is this Government who are bringing better transport services to the north-east.

[Hilary Benn (Leeds Central) (Lab)]

This is the third time that a private franchise on this line has failed. The Secretary of State just told the House that when it is fully formed, the new LNER operation will be a partnership between the public and private sectors. Can he clarify that, until that time, it will in effect be a publicly run service? If so, he could have made a considerably shorter statement if he had just got up and said, “For the time being, I am renationalising the east coast main line.”

--- Later in debate ---

[Chris Grayling]

It will be a publicly run service, and over the next two to three years, we will be developing the new model of the future. As I say, the operator of last resort is a publicly run service—so, yes, it will be, and we will be making the transition to the new arrangements over that period.

[Philip Davies (Shipley) (Con)]

Further to the Secretary of State’s answer to my hon. Friend the Member for Middlesbrough South and East Cleveland (Mr Clarke), he will know that extra services between London and Shipley and Bradford are scheduled to operate from next year onwards. What reassurance can he give that those extra services will operate? Can he ensure that Network Rail privatises the work required, so that those extra services are in operation on time, because they are very important to the local economy in the Bradford district?

[Chris Grayling]

My recollection is that the Bradford services and the ones going through my hon. Friend’s constituency are due to start next year, and I know of no reason why that should not happen.

[Mr Ronnie Campbell (Blyth Valley) (Lab)]

As has been said, three private companies have run the east coast main line, and they have all failed, except for the one that was disposed of by the last Government under the previous Transport Secretary. I wonder sometimes whether we should look at the current Secretary of State’s slush bucket and see how much Stagecoach put into it.

[Chris Grayling]

That suggestion is not worthy of an hon. Member of this House. The hon. Gentleman knows that decisions about procurement are taken predominantly by officials, and I regret the fact that he has made such an allegation.

[Mr Speaker]

Forgive me, but I do not know whether it was an allegation. It happened very quickly, and I did not deem it in any way to be disorderly. I will look at the record later, but the hon. Gentleman has made his point and the Secretary of State has responded to it.

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

I suspect the Secretary of State is of a similar age to me and therefore remembers the last time our railways were nationalised. Is he therefore bemused by the somewhat romantic image that the Labour party portrays of what the railways were like? My recollection is that they were dirty, inefficient and nearly always late, not to mention the terrible sandwiches. They were a far cry from the modern and efficient railways we have today, thanks to private investment. Most of our challenges now are a result of rapid growth in passenger numbers.

[Chris Grayling]

We do not even have to look back to the days of British Rail. We just have to look across the channel to a railway that is heavily indebted, where there are threats of line closures, where the leadership of our friends in the French Government are saying that it simply is not acceptable to carry on the way they are and where they are looking to take their railway in the direction of ours and not the other way round.

[Jenny Chapman (Darlington) (Lab)]

Franchising on this line has failed repeatedly. The Secretary of State could make himself incredibly popular in my constituency, which is the birthplace of the railways, if he just stood up, looked behind him and said, “My name is Chris Grayling, and I have just nationalised a rail line.”

[Chris Grayling]

I have just explained why I do not think nationalisation of our railways is the long-term answer: we just have to look across the channel and see the chaos there to understand that a trip back to the days of British Rail is not right for the future of the travelling public in this country, however much Opposition Members might want it.

[John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)]

I have been working closely with the Rail Action Group, East of Scotland to reopen stations at Reston and East Linton. In the light of today’s announcement and given the impact that the operation of the east coast main line has on those stations, will the Secretary of State meet me and the hon. Member for East Lothian (Martin Whitfield) to discuss those projects and how the east coast main line might be able to progress them further?

[Chris Grayling]

I would be happy to do that. I want to see services on this route develop, and I want to see new destinations and new kinds of service. Of course, once High Speed 2 opens, there will be an opportunity for a whole raft of new services on this route, because of all the extra capacity that will be freed up.

[Christine Jardine (Edinburgh West) (LD)]

I wonder whether I could first address the point of order. Correct me if I am wrong, but I think the Secretary of State said that all Opposition parties had been informed of the contents of the statement before we came into the Chamber. That was not the case for my party. We had no notification at all, other than an email with a heading saying that there would be a statement. We did not receive an electronic notification until two minutes past 1 o’clock, when we were all already in the Chamber. Could the Secretary of State comment on that?

The Government cannot simply go on bailing out failing rail franchises. There will be a knock-on effect on other rail franchises, and what are other companies to do if there is a further reduction in economic growth and they are finding it difficult? Are the Government going to bail out every one of them, or will they take the opportunity to look at how public ownership works in this case and examine the future of the railways?

[Chris Grayling]

I will make two points. The custom and practice is to provide an advance copy of a statement to Her Majesty’s Opposition. It has also been the custom in recent years to provide one to the third party. Both of those were done this morning, so I have followed conventions as per normal.

The hon. Lady talks about bailing out a private franchise. I have not bailed out any private franchise; I have just taken away its contract.

[Andy McDonald]

On a point of order, Mr Speaker.

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

Will my right hon. Friend confirm that nothing he has announced today will affect the investment in new rolling stock and the introduction of the new Azuma trains on the east coast main line? In the spirit of cross-party co-operation, may I give him a cheer for reintroducing the LNER brand back into our railways? LNER was one of the four great private railway companies that developed our railways in the last century.

[Chris Grayling]

I give my hon. Friend an assurance that the Azuma trains will be joining the network later this year. They will deliver a fantastic new service for passengers, and they will indeed be LNER Azuma trains instead.

[Grahame Morris (Easington) (Lab)]

The Secretary of State said that he was not aware of any problems with other franchises. Perhaps he was not in the House during Prime Minister’s questions, when problems with the Northern franchise were identified. Private companies are walking away from franchise bids in Wales and the east midlands. Is this not clear evidence that the rail franchising model is broken, and that the answer is a truly integrated railway under public ownership?

[Chris Grayling]

First, the number of firms asking for passports to apply for franchises is actually increasing, not decreasing. As I keep explaining to Opposition Members—they are causing as much trouble as they can for the Government over the European Union, instead of working together in the interests of this country—what they are proposing is illegal under European law.

[Stephen Kerr (Stirling) (Con)]

I commend my right hon. Friend for taking this tough decision and bringing forward his plan for a public-private partnership for the east coast main line. Will he confirm what this decision will mean for the customer experience before and after 24 June? What will be the travelling public’s experience as a result of this decision?

[Chris Grayling]

The travelling public are the most important people in all this. Tomorrow, and indeed on 25 June, they should notice no difference to the timetable or the tickets; they can buy tickets in advance. The difference is that from that point on they will notice a change to the trains, which will become LNER livery trains. Later this year, there will of course be brand-new LNER livery trains, providing a much better experience for the travelling public—and a more reliable experience at that.

[Judith Cummins (Bradford South) (Lab)]

The Secretary of State said in his statement that there is “no suggestion of either malpractice or malicious intent in what has happened.” Does he agree with me that what has happened smacks of a pattern of failure and incompetence, and that he, as the Secretary of State, should take responsibility?

[Chris Grayling]

Clearly the Government have to act in a situation like this, and we have done so: we have acted decisively. The reality is—I stand by what I said—that there is no malicious intent. A major corporation has made a major mistake, and it has paid a price equivalent to a fifth of its market capitalisation, which is a big cost for any business.

[John Penrose (Weston-super-Mare) (Con)]

I welcome the Secretary of State’s response to my hon. Friend the Member for Wimbledon (Stephen Hammond), who asked about open access. The Secretary of State was clear that open-access services will be maintained, but may I ask him to go further? In preparing for the end of the current deals in 2021, may I ask him, instead of going back to a failed nationalisation model or indeed of relying on the evident fragility of the franchising model, to consider greatly extending open-access rail to cover the entire line once the current deals are over?

[Chris Grayling]

I know my hon. Friend is a great believer in open access, and I think that this line proves that it can make a real difference. I give him an assurance that we will do all we can to continue to encourage open access to maximise the capacity of the railway network.

[John Mann (Bassetlaw) (Lab)]

The voters along the east coast main line in England were the strongest voters in the country for Brexit, and when they voted to leave the European Union, they, including my constituents, did not vote to give away the benefits that will come from it. They saw one of the big benefits of that vote as the ability to nationalise the rail industry. Why is this Secretary of State snubbing those Brexit voters and kicking them in the teeth?

[Chris Grayling]

I know we have travellers on this line who believe they are getting a better service than they have before, and I believe that most of them would agree with me that reuniting track and train is the best way of delivering performance. This is not actually about ownership. If a railway has operational challenges or is operating at capacity, it does not matter who owns or controls it, as the problem is still going to remain. If it were taken back into the public sector and then starved of capital, as would inevitably happen, we would end up with a railway that did less well for the future.

[Henry Smith (Crawley) (Con)]

I welcome the Secretary of State’s reconfirmation of the break-up of the Govia Thameslink Railway franchise in 2021, and also the £300 million of engineering investment that is going in, but will he please re-emphasise that the company must make sure that bus replacement services are not stranding passengers during periods of engineering work?

[Chris Grayling]

I am aware of the issue at Gatwick the weekend before last. My understanding is that the problem was relatively short lived, but lessons have to be learned from that incident, just as they particularly had to be learned from the previous one. The company needs to get this right. The engineering work has to be done, but we cannot leave people stranded in massive queues on a Sunday as a result.

[Fiona Onasanya (Peterborough) (Lab)]

Three times in under a decade private companies have failed the east coast main line. It was successfully managed by a public company between 2009 and 2015. Why will the Secretary of State not accept that obvious solution to the problems faced by the east coast main line?

[Chris Grayling]

I do not believe that that is the long-term answer. We are actually taking the line back into state control now. The whole point is that, during those years, the railway contributed less to the public purse, had lower levels of satisfaction and employed fewer people than it does today, and there must be a lesson in that as well.

[Jack Brereton (Stoke-on-Trent South) (Con)]

Does the Secretary of State agree that it is the involvement of private companies through the private-public partnerships managing our railways that has helped to foster more competitivity, particularly in relation to services and ticket prices?

[Chris Grayling]

That is right. I cannot understand why the Labour party is so fixated on recreating British Rail just at the time when our friends in France are going to step away from that model and actually move closer to where we are. That is Emmanuel Macron’s vision to create a better railway. The Labour party seems to want to go in exactly the opposite direction and to return to a situation that the French say is not working for them.

[Martin Whitfield (East Lothian) (Lab)]

The Secretary of State mentioned that independent members “will ensure the interests of other operators on the route are taken into account.” Will this include First ScotRail, which operates the local service—it is itself operating at capacity and facing its own crises—on the east coast main line in my constituency of East Lothian?

[Chris Grayling]

We have to make sure that the new organisation—I have talked about this with the rail regulator, which has been involved since the start of developing this concept—has a duty to make sure both that space is available for other operators and that, in relation to the support and the service provided, there is no discrimination against other operators, such as regarding whether the signals work and so forth. This has to be structured in a way that protects such operators, whether in the case of First ScotRail in the north, or other operators in the midlands and the south.

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

I have served on the Transport Committee for the past few years, during which time we have examined the challenges that face train operators as a result of record investment in our Network Rail assets. Is it the Secretary of State’s view that the issue on the east coast main line is so acute that the only way to fix the Network Rail assets is to have it all as one operating entity?

[Chris Grayling]

On a rail network that is operating absolutely at capacity all round—when there are very few, if any, spare train cars; and when anything that goes wrong is hugely disruptive to the timetable—a joint operating team that is able to plan train services and engineering works as part of that same team, rather than in two different organisations, is a much better way to operate a railway. My vision for the east coast main line, and indeed for other parts of the rail network where we are taking steps down the same path, is to create such a joined-up approach of managing track and train together. In my view, that is the best way to make a congested railway work more effectively for passengers.

[Caroline Flint (Don Valley) (Lab)]

The Secretary of State says that Stagecoach and Virgin Trains got their bid wrong, which presumably means that they undercut their competitors. Should there not be a consequence, with Virgin and Stagecoach denied the right to bid for other franchises?

[Chris Grayling]

First, there is no legal basis for taking that step. Secondly, it is interesting that the Labour Members always demand that we stop international companies getting franchises in the UK. They seem to want to drive out of the industry a company that has made a huge mistake and paid a big price for it, but which none the less has been a successful transport operator in the UK for a long time. We should take sensible decisions in the interests of the country and of passengers. That is what I am doing.

[Julian Sturdy (York Outer) (Con)]

It is clear that there are unique infrastructure challenges on the east coast main line, many of which affect my constituents. What steps will the Secretary of State take to resolve those challenges, and can he assure me that the creation of the new partnership will solve them?

[Chris Grayling]

That is very much my aim. I will ask the new joined-up board to consider how we can bring digital technology to the signalling on the line. There are not enough train paths, and the way to sort that for the future is by moving to a digital railway. This is an area in which we can supplement public investment—we are putting in a record amount over the next five years—with private investment so that, for example, we unlock the potential of digital technology to create even more capacity on our railways.

[Mary Creagh (Wakefield) (Lab)]

I congratulate the Secretary of State on following the advice I have been giving him in this Chamber and partially implementing Labour’s 2015 transport manifesto, which I had a hand in writing, by bringing track and train closer together. I also congratulate him on his decision to bring the Great Northern line under the control of London’s Mayor, thereby recreating Network SouthEast from the days of British Rail. His decision to run the railway from 24 June shows that that is legal under European law. I urge him to go further and ensure that the private sector knows there is an operator of last resort ready to step in, so that we have a public railway operated by public servants and working in the public interest.

[Chris Grayling]

I think people already know, if they did not know before, that there is an operator of last resort. The legal position, as the hon. Lady will know, is that existing European law already provides for a separation of track and train. The new European rail package that comes into force in the autumn goes further by making it illegal to let any public contract without private sector competition and a private sector alternative. That will make the Labour party’s policies completely illegal.

What matters is what works for passengers. On bringing the operation of track and train back together, I think we both agree—I am grateful for the hon. Lady’s comments. We may disagree about overall ownership structures or the overall approach to privatisation or nationalisation, but a single team operating the two will take joined-up decisions in the interests of passengers. In my view, that is the right way forward.

[Sir Desmond Swayne (New Forest West) (Con)]

What was the line’s contribution to the taxpayer between 2009 and 2015, and what has it been subsequently?

[Chris Grayling]

The equivalent contribution since the current franchise started is roughly—if I remember correctly; this is just from memory—£200 million more for the taxpayer. It is certainly the case that the franchise has been contributing more to the taxpayer since Virgin Trains took over than was the case when it was under state control. The Labour party always seems conveniently to forget that, but it is the truth.

[Paula Sherriff (Dewsbury) (Lab)]

I receive daily communications from constituents who are frankly fed up with antiquated, unreliable and overcrowded trains, including, but not exclusively, on the east coast main line. The Secretary of State has long promised improvements in investment but has failed to deliver. When will he get a grip on rail in the north?

[Chris Grayling]

I keep saying to the hon. Lady that what she wants is a Government who are providing brand new trains. The first are already being introduced. On the trans-Pennine route, the completely refurbished new trains are already in operation. The first of the new-build trains are due to arrive within a matter of weeks. I expect the first Pacer trains to go to the scrapyard later this year. The new Hitachi-built trains arrive on the east coast main line later this year. The railways are about to go through the biggest transformation of their rolling stocks since the steam engine. I hope she and her constituents will welcome that.

[Kevin Foster (Torbay) (Con)]

I know that the Secretary of State shares my view that the idea that a rebranded British Rail is the great solution for all our transport problems is faintly ridiculous. What learning from the experience of dealing with this particular franchise is being taken to the Great Western Railway, which will have a franchise soon?

[Chris Grayling]

We have to ensure that the risk-sharing mechanisms are right, which is why I have tasked the rail Minister with looking in detail at franchise contracts. On Great Western, I want a very close relationship and deep alliance—if not one step further than that—between Network Rail and the train operator. We have to ensure for all future franchises that we do not get ourselves in a position in which the franchise can fail in this way.

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

It looks to me like the Secretary of State’s golden ministerial touch has worked again to produce a catalogue of failure: his Department’s failure; the franchise agreement failing; incompetent train operators; and taxpayers and passengers losing out yet again. Does he plan to make an announcement about a £500 million bailout of Crossrail, which was reported in the newspapers at the weekend, again adding to the disparity in investment between north and south?

[Chris Grayling]

Opposition Members keep quoting what they have read in the papers. When there are things to tell the House, I will tell the House, as I always have, Mr Speaker. I counsel Members not to just pick up newspapers.

On the disparity in investment between north and south, the flagship project for the next five years is the £2.9 billion trans-Pennine upgrade, which is by a country mile the biggest rail investment project for the next five years in the Network Rail investment programme.

[Maria Caulfield (Lewes) (Con)]

The Secretary of State’s statement mentions the break-up in 2021of the Thameslink and Southern Rail franchises, but I urge him to break them up sooner rather than later. The new timetable changes affect passengers in my rural constituency, with stations at Berwick, Wivelsfield, Seaford, Lewes, Plumpton and Polegate all losing significant services. Will he bring forward the break-up of the franchise?

[Chris Grayling]

Let me touch briefly on the question of the new franchise. The big change to timetabling is not just in my hon. Friend’s area, but all around the country. It is being driven by Network Rail, which ultimately controls timetabling across the network to try to make a very complicated pattern of services fit together. After 20 May, there will be some fantastic enhancements to services around the country. Some tough decisions have been taken about levels of demand and ridership. If colleagues have individual concerns, the rail Minister and I will be very happy to sit down and talk about them. This is a massive and broad change that will deliver far more for passengers.

[Lisa Nandy (Wigan) (Lab)]

I welcome the Secretary of State’s decision, however reluctantly he reached it, but he seems to have no comprehension of the gravity of what is happening on our railways. Northern passengers were promised a better service when the franchise was awarded a couple of years ago, but that service is dirty, overcrowded and increasingly unreliable. That is having a major impact on our economy. Will he join me, the Mayor of Greater Manchester and cross-party MPs, and, in the public interest, step in to strip this arrogant, out-of-touch company of its franchise?

[Chris Grayling]

Let us be clear about two things. First, the Northern franchise is co-managed between Rail North—part of Transport for the North, on which the hon. Lady’s northern colleagues sit—and my Department. They are delivering a massive investment programme. I would add a cautionary note. Performance issues need to be addressed and we will address them, but it would be a huge mistake to disrupt the investment programme that, over the coming months, will start the transformation of all those dirty old trains that should have been replaced a decade ago but were not. The new trains are being built. The first ones are starting to arrive and she will see a transformation that is long overdue.

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

Is the Secretary of State attributing all the problems on the east coast main line over the last few years to the franchise holders and none of them to his Department and him?

[Chris Grayling]

I attribute the problems on that line to two things: first, an unrealistic bid that has failed; and secondly, old rolling stock that is being replaced and an infrastructure that needs an upgrade and is going to get it. That is what has caused the operational problems—notwithstanding that, passenger satisfaction on that railway line is 92%,which I think is pretty good.

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

The cross-party Public Accounts Committee said last month that the Department for Transport’s forecasted earnings from the east coast franchise were wildly wrong. Given today’s announcement, how can we have faith in the Secretary of State’s Department’s handling of it, and will he now apologise for presiding over yet another privatisation disaster on our railways?

[Chris Grayling]

What I have done is take decisive action to deal with a problem that needs to be addressed to make sure that we protect passengers. That is what everybody would expect.

[Clive Efford (Eltham) (Lab)]

The Secretary of State is the one who wrote the letter saying that he would not hand over suburban services to a Labour Mayor of London, but in today’s statement he has had to eat his words about the overground services in north-east London. In south-east London, my constituents face a worse service, with less choice of destinations as a result of the new franchise, so will he reconsider the position with regard to the Southeastern franchise and allow the Mayor of London to take it over and give a better service to my constituents?

[Chris Grayling]

The issue remains twofold. The Mayor of London’s business plan for the Southeastern franchise provided virtually no new investment at all. There was a handful of extra services on the Nunhead line, and the rest of it was on a wing and a prayer. I think that the new franchise document specifying improvements for passengers will deliver, not just in London but across the whole of the Kent and south-eastern area, because this is not a London franchise.

[Kelvin Hopkins (Luton North) (Ind)]

May I remind the Secretary of State of a previous experience with public-private partnership on the railways—namely that in the London underground? It was forced on the Mayor of London and Transport for London, who resisted it very strongly. The scheme collapsed in disorder, very expensively. Tube Lines and Metronet—the two private companies involved—stuffed their pockets with money before it collapsed back into the public sector. Is that not going to happen again with this scheme?

[Chris Grayling]

I remind the hon. Gentleman that that problem happened when Labour was in power, which proves that they are not good at setting up contracting arrangements.

[Kate Green (Stretford and Urmston) (Lab)]

The Secretary of State knows, because I have raised it repeatedly, about the appalling service that my constituents are receiving from Northern Rail, with delays, cancellations, overcrowding, and trains running through stations without stopping when they should. Now the new timetable removes station stops all together. Will he finally take action to ensure that a compensation scheme that recognises the disruption that my constituents have suffered for months can actually be put in place to give them some measure of recompense for the disruption that they have suffered?

[Chris Grayling]

We continue to keep the matter under review. We are moving to Delay Repay 15 and looking at other ways of tightening performance on the railways, but the big difference to travellers in and around the Manchester area will come from the arrival of new trains and the completion of the works on the Bolton line, which have caused more disruption than I would wish. I am less than happy about the delays that have taken place and I am putting as much pressure on Network Rail as possible to get it sorted.

[Albert Owen (Ynys Môn) (Lab)]

The whole reason that we have this statement from the Secretary of State is that the current franchise arrangements are broken. I urge him, in the new franchise, to include not-for-profit and the part-nationalisation that he has announced today. That would avoid the embarrassment of a Secretary of State having to come to this House to announce that further down the line and costing taxpayers money.

[Chris Grayling]

As I keep saying in respect of what I will bring to the House in due course, as we make further progress towards the implementation of what was the east coast partnership and is now the London North Eastern Railway, this is a different paradigm, and it simply will not operate in the way the hon. Gentleman has discussed.

[Gareth Thomas (Harrow West) (Lab/Co-op)]

Given the well known but now even better publicised problems with the rail franchising model, might this not be the moment for the Secretary of State to review the Co-op party’s recent proposals for rail reform, including a series of new mutual, not-for-profit train operating companies that are able to operate in the private sector, but are publicly owned, and able to attract significant private investment?

[Chris Grayling]

As I said in my statement, one of the things that I am looking at on the east coast route is how we secure significant employee participation in its success. I will look carefully at what the hon. Gentleman suggests. I think that we need a different approach. That is why the LNER model that we will be developing over the coming years will be a revolution for the railways.

[Thangam Debbonaire (Bristol West) (Lab)]

The Secretary of State says that he wants to protect passenger interests and ensure value for money for taxpayers, but in Bristol, as across the country, fares have gone up three times faster than wages since 2010. He also says that he wants to support investment and improvement in the railway. We have some new stock, but we have had our electrification cancelled in Bristol, despite massive disruption for constituents in Lawrence Hill and Easton. When is he going to sort out our electrification and when will he accept that the favour that he has just done for the people and passengers on the east coast needs to be done for the passengers in Bristol, so that our rail service is no longer failing?

[Chris Grayling]

The hon. Lady is being a bit churlish. She is getting brand new trains for Bristol and the best ever train service to London. We are in the process of dualling the Filton Bank. We are working with the combined authority mayor for the Bristol area to develop the plans for the Bristol metro, MetroWest, which I regard as one of the most important projects for the country—[Interruption.] MetroWest is rail. It is going to be one of the most significant developments that Bristol has seen for a very long time, developing the kind of suburban rail network that it really needs.

Points of Order

Chris Grayling Excerpts

Wednesday 16th May 2018 Commons Chamber

[Mr Speaker]

I am grateful to the hon. Gentleman. If the Secretary of State wishes to respond, he can.

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

Further to that point of order, Mr Speaker. As I indicated to you earlier, my officials provided a copy to the hon. Member for Middlesbrough (Andy McDonald) so that he could prepare his response to my statement in good time—about 45 minutes, in fact, before the statement started. I judge that to be the best way of approaching what is a market-sensitive announcement, and it did not require me to do what is done, for example, on Budget day, when no advance notice is provided.

[Mr Speaker]

I think that this matter is best continued, if discussion on it is required, outside the Chamber. I have made my position clear on the subject of the statement being made today. I say this to the Secretary of State, who is not responsible for scheduling: there will be people who feel very unhappy that on a day when we have an Opposition day debate on Grenfell, which is heavily subscribed, a very substantial amount of time has been taken up, inevitably, by this statement. People will be very unhappy about that. I say to Members on the Treasury Bench that they ought to think about these matters extremely carefully from now on, because my priority is to defend the rights of the House of Commons, and I will do that against all comers. I have never been worried about the verdict of the Executive, and I am not going to start now.