Oral Answers to Questions
Lord Grayling Excerpts(7 years, 10 months ago)
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Luke Graham (Ochil and South Perthshire) (Con)
The Secretary of State for Transport (Chris Grayling)
May I start by making the House aware of the fact that, as you are aware, Mr Speaker, the Under-Secretary of State for Transport, my hon. Friend the Member for Hereford and South Herefordshire (Jesse Norman), is unfortunately not with us this morning, because he has been invited to appear before a Select Committee. I am sure you will share my slight disappointment that any Committee would call a Minister when he is supposed to be giving oral answers to the House, but that is his reason for not being here.
The two things we are doing to improve north-south rail connections in the UK are, first, building High Speed 2—the first new north-south railway in this country for over a century, which will have a transformational effect on people in the midlands, the north of England and Scotland. We will also shortly see the arrival of the new fleet of inter-city express trains, which will operate on the east coast main line, enabling additional and faster services between key locations on the route. Of course, those trains will run right up the east coast to Scotland.
Luke Graham
I thank my right hon. Friend for that. While acknowledging that rail funding will increase from £3 billion to £3.6 billion in the next spending period, may I ask what consideration has been given to improved road connections between Scotland and England, especially along the east coast?
Chris Grayling
The east coast is the key priority in road-building terms. We are very close to opening what will, extraordinarily, be the last bit of motorway linking London and Newcastle; it is long, long overdue, and I am amazed it has not happened already. We are then pressing ahead with dualling the A1 north of Newcastle, and my goal is to take that up to the border, but it will be for the SNP and the Scottish Government to make sure that something is there to meet us coming the other way.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
The Minister might know that I have probably done more miles on the east coast line than any other Member of this House. May I tell him, with that experience, that it is chaos again on the east coast? Stagecoach is being let off the obligation to pay the full money it should be paying to the British Exchequer. Yet again, the east coast line is in a mess, and he is doing nothing about it.
Mr Speaker
I am very glad that the hon. Gentleman has already recovered from his obvious misery at Arsenal’s demolition of his team by five goals to nil last night.
Chris Grayling
A tiny bit below the belt, I think, Mr Speaker, but the hon. Gentleman seems to have weathered the storm pretty well.
The hon. Gentleman will be aware that, notwithstanding issues on the east coast main line, passenger satisfaction on that route has actually improved rather than reduced; indeed, the money flowing to the taxpayer has increased rather than reduced, so he is slightly misjudging the current position.
Robert Jenrick (Newark) (Con)
The Secretary of State knows how important the east coast main line is to Newark and my constituents. In recent years, Network Rail’s performance has been poor, and the track does need considerable investment. That is the principal reason why delays have increased on the east coast main line. Will the new public-private partnership see more investment and improvements on the track?
Chris Grayling
I can give my hon. Friend that assurance. In fact, we have a substantial investment programme lined up for the east coast main line, upgrading power supplies and improving the tracks, and that will certainly be steered by the new partnership.
Liz Twist (Blaydon) (Lab)
Chris Grayling
We have been ensuring simply that we phase projects to cause the minimum possible disruption to users of the roads, while making sure the rolling programme goes forward. I am very proud of the fact that, as a Conservative Government, we are the ones transforming the A1—a project that is long, long overdue.
Alan Brown (Kilmarnock and Loudoun) (SNP)
To go back to rail funding, the Secretary of State is well aware that there is a £600 million gap in the allocation of funding to Scotland for the next investment period. Previously, rail funding to Scotland was based on its percentage of the network—that funding formula was developed in 2005—so will he explain why, if he thinks north-south rail links are a priority, he is quite happy for there to be a cut in rail funding on his watch?
Chris Grayling
As I keep saying to the hon. Gentleman, I am very happy that funding is allocated to Scotland on the basis of the Barnett formula. I thought that was the way things worked.
Alan Brown
Let me explain to the Secretary of State that the previous rail funding was based on need and on Scotland’s percentage of the rail network. Helpfully, the other day the Secretary of State for Business, Energy and Industrial Strategy acknowledged that the allocation of funding to Scotland for infrastructure should be based on need and geography, and it should be the same for rail. In answer to a question tabled in October, the Secretary of State for Transport said he has “various discussions” with the Secretary of State in Scotland only “from time to time”. Is it not time that he prioritised this issue, and will he agree to meet me and the Transport Secretary for Scotland to discuss the budget and north-south linkages?
Chris Grayling
If the hon. Gentleman wants to meet the Government to discuss the removal of the Barnett formula and the move towards needs-based allocation of funding across the piece for Scotland, I am sure that would be a very interesting discussion; but in this country over the past few years we have tended to follow the Barnett formula. Most recently, we have provided additional funding to Scotland through the allocations in the Budget. Money has been spent on capital investment in England and money is to be spent based on the Barnett formula in Scotland. That is the way we operate.
Andy McDonald (Middlesbrough) (Lab)
We learned yesterday that the east coast rail franchise will be terminated in 2020—three years early—potentially forfeiting billions of pounds in premiums due to the Treasury, yet the Secretary of State told the House that Stagecoach will meet in full the commitments it made to the Government as part of this contract. So, can he confirm that the full £3.3 billion due from Stagecoach-Virgin will be paid to the Treasury, in accordance with the terms of the original contract?
Chris Grayling
Every time a franchisee takes up a new contract it makes a parent company commitment to the Government. That commitment will be kept in full.
Andy McDonald
Can we get to the heart of this? Will the premiums of some £2 billion due under that contract covering the years 2020 to 2023 be paid? Will they be paid—yes or no?
Chris Grayling
Self-evidently, given my announcement yesterday that we would have the east coast partnership in place in 2020, there will be new arrangements in place in 2020. As I have said to the hon. Gentleman, every franchisee makes a parent company commitment before taking out the contract and we will hold that that commitment will be met in full.
Rachel Maclean (Redditch) (Con)
Ian Mearns (Gateshead) (Lab)
The Secretary of State for Transport (Chris Grayling)
We recognise the importance of using infrastructure projects to support regional growth, which is why we are increasing Government infrastructure investment by 50% over the next four years. Such investment decisions are based on a fair and rigorous process that is designed to ensure that spending goes where it is most needed.
Mike Amesbury
Will the Secretary of State put some power—some oomph—into the northern powerhouse, and pledge to get funding for passenger trains and platforms on to the existing Mid Cheshire rail link?
Chris Grayling
As somebody who used to live very close to the Mid Cheshire rail link—indeed, I used to go walking alongside it—I am well aware of its potential. I have asked Transport for the North, which is taking the lead on making recommendations about new projects, to do work on this for me, but I should say to the hon. Gentleman that I am extremely sympathetic to the idea of trains running again on that railway line.
Ian Mearns
Between 2011 and 2016, the average spending per head of the population on transport infrastructure in London was £725, but the similar figure for the north-east was £286. The investment in Tyne and Wear Metro, which is due in three or four years’ time, is very welcome, but we have a very long historical legacy of under-investment. Will the new formula do something about that historical legacy of under-investment?
Chris Grayling
To be honest, I am less concerned with formulae than with actually doing things. I am delighted that we are renewing the Metro trains, and I said yesterday that I am very keen to pursue the Blyth to Ashington extension to the Metro line. I am very keen to ensure that we continue to develop the road network in the north-east, which is why the opening of the first complete motorway link from London to Newcastle is so important, why we need to keep on improving the A1 north of Newcastle and why dualling the A66 is so important. This is about doing things, and that is what is actually happening right now.
Lucy Frazer (South East Cambridgeshire) (Con)
Does the Secretary of State agree that doubling the line from Ely to Soham, as part of the Ely area improvement works, will bring significant benefits to the eastern region?
Chris Grayling
Absolutely. I regard this, along with the trans-Pennine upgrade, as one of the key priorities for the next railway investment control period. The Ely junction project will unlock freight and passenger capacity in a really important part of the country. Along with the investments we are putting in place elsewhere, it is a very important part of our strategy.
Steve Double (St Austell and Newquay) (Con)
I thank the Secretary of State for his support in securing £79 million of funding for a new link road from St Austell to the A30 in my constituency, as confirmed in the Budget last week. Does he agree that this and other schemes, such as dualling the A30 and the new trains that are soon to arrive in Cornwall, clearly demonstrate this Government’s commitment to investing in transport infrastructure across the whole country?
Chris Grayling
I am grateful to my hon. Friend for his comments, and I am very pleased that we have got the go-ahead to deliver that road improvement for the people of Cornwall. It is really important for the regions of this country—whether the north-east or the south-west—and particularly areas that need to be given more infrastructure support so that their economies develop, to get the kind of investments that they are now getting, and we are very committed to going forward with that in the future.
Helen Goodman (Bishop Auckland) (Lab)
Chris Grayling
Bus fares are something over which my Department has less control, particularly with the new franchising arrangements that are coming into place, but I will most certainly make sure that the Under-Secretary of State for Transport who is responsible for buses, my hon. Friend the Member for Hereford and South Herefordshire (Jesse Norman), is aware of the hon. Lady’s concerns and that we respond to her.
Diana Johnson (Kingston upon Hull North) (Lab)
The Secretary of State for Transport (Chris Grayling)
The Government are committed to ensuring that our continued levels of record investment best address the needs of passengers and freight. Passengers expect high-quality rail services, and we are committed to electrification where it delivers genuine benefits to passengers and value for money for the taxpayer.
Diana Johnson
No rail system can be called high speed unless it is electric. After blocking Hull’s privately financed rail electrification scheme a year ago, yesterday, the Transport Secretary told the House—I am sure he will recall this—that the Liverpool to Hull Crossrail for the north would happen in parallel with the Surrey to Hertfordshire Crossrail 2. Will both lines be electrified, just as Crossrail 1 is electric?
Chris Grayling
At a time when we are seeing technology move very fast, people have to get away from a set focus on an individual form of motor power. Not every 125 mph train has to be powered by a particular power source. In the coming years we will see more development of bi-mode technology, battery technology and hydrogen technology. We will use the systems that make the most difference to the passenger the most cost-effectively.
Rachael Maskell (York Central) (Lab/Co-op)
Despite the creaking electrification infrastructure on the east coast, the 43-page “Connecting People” was jammed with funding reannouncements, possible reopenings, readjusted delivery dates, delayed promises and a lot of words to try to hide what we all now know was the central purpose—to conceal the deal on the failed Stagecoach franchise.
The new partnership that passengers want is their trains to arrive on time, so when will we see the upgrade to the electrification works needed on the east coast?
Chris Grayling
As I said earlier, the key point is that the next investment control period contains a programme of continued upgrade and investment for the east coast main line, to go along with the arrival of a new generation of smart, new, effective, passenger-friendly trains. All of that will happen so that we deliver those improvements and passenger services. Having heard the shadow Secretary of State’s questions earlier, I think that he has not understood that this will be a completely fresh partnership with potentially new partners and a new way forward, delivering better services for passengers in a more joined up way.
Rachael Maskell
More structural changes, but the electrification wait continues. Let us look at these new rail partnerships. They are moving a public service to the control of private companies. This is not devolution to the rail authorities or to the people, it is devolution to the shareholders; it is further fragmentation and privatisation of the railway, failed operators now being handed the tracks as well as the trains, and nothing to address the electrification upgrade.
Is it to recoup these costs that the ticket prices will be soaring by 32% since 2010 after Christmas?
Chris Grayling
Two points: Labour Members should remember how much fares rose when they were in power; and they might like to explain why their friends in the unions have in their training manuals a requirement for negotiation for RPI increases in the future. Why is that? Why do they not tell their union friends to change their ways of operation?
Alex Burghart (Brentwood and Ongar) (Con)
Geoffrey Clifton-Brown (The Cotswolds) (Con)
The Secretary of State for Transport (Chris Grayling)
My hon. Friend knows well the interest I have taken in this project. Highways England is currently conducting a final review of the route options for the A417 missing link. It is on track to launch a public consultation early in the new year.
Geoffrey Clifton-Brown
My right hon. Friend knows that the south-west is a low-growth area. This is a highly important strategic national road scheme linking the south-west with the midlands and the Thames corridor. Does he agree that we need to get on and build this scheme as soon as possible?
Chris Grayling
It is not just about that; we also know that this is a highly dangerous piece of road, where, tragically, there has been a further accident with loss of life in the past few weeks. So it is not just about creating the right economic links; it is also about creating a safer road network. For both those reasons I have been very clear with Highways England that I want to get on with this project.
Stuart C. McDonald (Cumbernauld, Kilsyth and Kirkintilloch East) (SNP)
Craig Tracey (North Warwickshire) (Con)
The Secretary of State for Transport (Chris Grayling)
In the case of the Minister for Transport Legislation and Maritime, my right hon. Friend the Member for South Holland and The Deepings (Mr Hayes), I am sure that we have not had too much of a good thing, Mr Speaker. You will be delighted to know that it is not only the House that has heard extensively from him this week but 175 Ministers from around the world. We have been hosting the biennial meeting of the International Maritime Organisation general assembly in London. The IMO is the specialist United Nations organisation responsible for measures to improve the safety and security of international shipping and to prevent pollution from ships. We host the IMO here in London. I want to thank everyone who has been involved in organising that event and to extend a warm welcome on behalf of the United Kingdom Government to all the Ministers and other delegates who have attended the convention this week.
Mr Speaker
I am sure that all those Ministers from around the world feel both informed and improved as a result of their interaction with the Minister for Transport Legislation and Maritime, the right hon. Member for South Holland and The Deepings.
Craig Tracey
I warmly welcome last week’s announcement of an £8 million road safety fund for the areas of Warwickshire affected by HS2. Does the Secretary of State agree that the Trinity Road-Overwoods Road junction in my constituency, which has seen numerous fatalities and serious accidents, would be an excellent candidate for some of that funding, given that the proposed solution is now unlikely to go ahead owing to the development of HS2?
Chris Grayling
I am glad that the Under-Secretary of State for Transport, my hon. Friend the Member for Blackpool North and Cleveleys (Paul Maynard), who is responsible for HS2, was able to visit that junction last week with my hon. Friend the Member for North Warwickshire (Craig Tracey). I am also pleased that Warwickshire County Council has been such a beneficiary of the available funding. While it will be for the council to decide what schemes to support, I hope that it will focus on where it can make the biggest difference to safety.
Cat Smith (Lancaster and Fleetwood) (Lab)
This Government are presiding over a sustained fall in the number of bus journeys taken. Just this week, Kent County Council outlined plans to axe more than 70 bus routes in a bid to save £4 million. Does the Secretary of State accept that bus passenger numbers will continue to fall until his Government halt the cuts to local authorities?
Chris Grayling
We want bus passenger numbers to rise, and the measures in the Bus Services Act 2017, which passed through the House a few months ago, will provide an environment in which bus ridership can recover and improve and will lead to more and better services around the country.
Andrew Rosindell (Romford) (Con)
Sir Nicholas Soames (Mid Sussex) (Con)
Chris Grayling
I will happily do that. Staffing issues are always disappointing, but the other area of challenge on the Southern network has been the condition of the infrastructure. We will in the coming months be taking some major steps with some major projects to start to improve the quality of that infrastructure, including spending the £300 million we have already committed, with more to follow in the next control period.
Dr Rupa Huq (Ealing Central and Acton) (Lab)
Chris Grayling
Crossrail is of course a massive investment in transport in London. It is not a TfL project; it is a joint project between my Department and TfL that is designed to improve the lot of passengers both inside and outside London. It will make a real difference to the south-east.
Mr Philip Hollobone (Kettering) (Con)
Jo Swinson (East Dunbartonshire) (LD)
Chris Grayling
I understand why this is such a serious issue, and I would be delighted to extend an invitation to the hon. Lady to come to the Department to meet Ministers and officials to talk about what is clearly an important matter.
Stephen Hammond (Wimbledon) (Con)
Chris Grayling
We are now conducting the kind of review of the financing of Crossrail 2 that we conducted on Crossrail 1—the Montague report. I am keen to see the project progress in lock step and parallel with northern powerhouse rail, and I make it clear that they are both important projects. I also make it clear that the London contribution cannot be an IOU paid for by the Government. We have to make sure that we have a robust, absolutely reliable funding package so this project can go ahead in good shape.
Imran Hussain (Bradford East) (Lab)
Chris Grayling
I am obviously well aware of that issue. It is worth remembering that we have just allocated £175 million to Leeds, which will be spent on a variety of projects around the city, but I am also aware that funding needs to flow to West Yorkshire. I will personally make sure that, as we allocate the funding, West Yorkshire is not left out.
Mrs Cheryl Gillan (Chesham and Amersham) (Con)
Will the Secretary of State welcome the fourth season of the Formula E series? The series starts in Hong Kong this Sunday and will be broadcast on Channel 5, and it aims to advance electric vehicle technology. With races taking place in 11 cities such as Paris and New York, will he look at attracting future races to the UK to complement our rapidly increasing electric vehicle technology?
Chris Grayling
My right hon. Friend is absolutely right. Motor racing is a great success story for this country, and it is an important part of our economy. People often do not understand the importance of the industry, which is particularly centred on Silverstone in Northamptonshire, where many of the leading teams are based. The technologies that come from small businesses and suppliers change the automotive world, not just in motor racing but across the piece. I am delighted to see the success of Formula E, and I would like to see more Formula E and more development of technologies for it in the UK. I am happy to extend the Government’s support to the motor racing industry.
Marsha De Cordova (Battersea) (Lab)
Colin Clark (Gordon) (Con)
Will the Secretary of State keep in mind the other northern powerhouse, Aberdeen, and the economic importance of its airport, including in servicing the oil and gas industry?
Chris Grayling
My hon. Friend and I had a productive visit to Aberdeen airport recently, and I absolutely understand its importance to the whole economy of the north-east of Scotland and indeed to the United Kingdom, because Aberdeen is central to one of our key industries. I have made it clear that as we expand Heathrow airport, we will make sure that capacity is set aside for regional links to airports in Scotland and elsewhere, so that every part of the UK benefits from the expansion of that airport.
Clive Efford (Eltham) (Lab)
TfL has clearly demonstrated its ability to run efficient services and improve them in London, so will the Secretary of State enter into negotiations with the Mayor of London about south eastern suburban services before my constituents are forced to endure yet another bungled privatisation?
Chris Grayling
The first thing to remind the hon. Gentleman of is that London Overground is also a franchise—Labour always conveniently forgets that. It is run by Arriva. The other thing to say is that the document we published yesterday on the new south eastern franchise involves far greater additional benefits for passengers than was ever the case in the Mayor’s business plan for that franchise. The last point to make is that I have extended to TfL and the Mayor the same offer that I made and is now in force in the north for a partnership in operating, designing and managing the franchise, but that offer is yet to be accepted.
Fiona Bruce (Congleton) (Con)
Cheshire East has the highest gross value added in the north. My constituents are extremely grateful for the Middlewich bypass funding, which is key to continuing this economic growth and delivering even more, as is the need to improve junction 17 of the M6 nearby. Will Ministers kindly give consideration to including that as part of the north’s emerging strategic transport plan?
Chris Grayling
I absolutely hear what my hon. Friend says. As someone who used to live close to that area, I understand the issues she raised, and I am sure Transport for the North will listen to her comments today. It is finalising its plans. As Cheshire and mid-Cheshire grow—the towns there have expanded considerably in recent years—there is a need to make sure that the infrastructure is fit for purpose, which is why my earlier comments about the mid-Cheshire line are also important.
Chi Onwurah (Newcastle upon Tyne Central) (Lab)
I welcome the public funding for the Tyne and Wear Metro announced in the Budget, which will come through the northern powerhouse. But if the northern powerhouse is to be anything more than a marketing gimmick, such funding must be part of an overall commitment to redress the dire imbalance in transport funding between the north and the south of England. Will the Secretary of State make that commitment here and now?
Chris Grayling
I keep saying that we are actually doing things right across the north: what we are doing on the Tyne and Wear Metro; the improvements to the A1; the completion of that last motorway link; the works taking place on the M1, M6 and M62; and the A66 widening. There are projects happening all across the north. We have brand new trains arriving on the east coast main line, the upgrade of that line that lies ahead and northern powerhouse rail in the future. This Government are delivering better transport for the north of England.
Wendy Morton (Aldridge-Brownhills) (Con)
Following the announcement by the Secretary of State yesterday that he will explore opportunities to restore capacity lost under the Beeching reforms in the 1960s, will he commit to looking into the possibility of reopening Aldridge station and perhaps coming to visit me in Aldridge to examine the benefits that could bring?
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
Does the Secretary of State feel any guilt about the fact that many of my constituents and many people in this country thought during the referendum campaign that people like him were promising that more money would be spent on transport infrastructure and the NHS because we would save so much money from leaving the EU? Yesterday’s announcement of a £50 billion debt that we have to pay to the EU was a shocking revelation. What is he going to do about it?
Chris Grayling
First, we made no announcement yesterday about money for the EU. Secondly, we are spending more money on transport infrastructure.
Kirstene Hair (Angus) (Con)
Montrose port is vital to Angus’s local economy, and good transport links to and from the port are essential for it to flourish further. Will the Secretary of State tell me what communications he has had with Network Rail since his visit to Montrose, regarding progress on negotiations to open a direct link to Montrose port?
Diana Johnson (Kingston upon Hull North) (Lab)
Further to my earlier question to the Secretary of State about Crossrail for the north, will he confirm that Crossrail 2 will not be wholly electrified?
Chris Grayling
We have finished the design of neither Crossrail 2 nor northern powerhouse rail. My focus right now is on the projects that are under way, including electrification across parts of the north of England and a £3 billion upgrade to the trans-Pennine routes. We are already seeing better investment in the north. When we see the final shape of Crossrail 2 and northern powerhouse rail, we will see what the answer to the hon. Lady’s question is.
Rail Update
Lord Grayling Excerpts(7 years, 11 months ago)
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The Secretary of State for Transport (Chris Grayling)
With permission, Mr Speaker, I would like to make a statement about our plans for Britain’s railways. Those railways were privatised in the mid-1990s against a backdrop of what many regarded as terminal decline. The radical Beeching cuts of the 1960s had been followed by further line closures under British Rail, and passenger numbers had been falling steadily since the second world war, yet privatisation sparked a remarkable turnaround in the railway’s fortunes. More than a million and a half more trains are timetabled each year than was the case 20 years ago, and passenger demand has more than doubled. Other countries are now adopting Great Britain’s rail model in their own markets.
To support that growth and reverse decades of underinvestment in the infrastructure, we have embarked on the biggest rail modernisation programme since the Victorian age. In addition to Government funding, billions of pounds of investment from the private sector is helping to renew and expand train fleets, upgrade stations and transform services across the country, and franchises are making an increasing contribution to the public purse. The rail renaissance we are seeing in Great Britain today is the direct result of a successful partnership between public and private sectors.
That partnership has delivered real benefits for passengers for more than 20 years, but that success has created its own challenges. As the number of services has increased, our network has become more and more congested, making the delivery of the punctual, reliable services that passengers expect more challenging. On much of the network, our railway is operating on the edge of what it can cope with. It carries more passengers today than it did in its heyday in the 1920s, on a network that is a fraction of the size. When things go wrong, the impact can be widespread and quick, causing significant frustration for the travelling public.
That is why last year I announced plans to start bringing together the operation of track and train on our railways. I said at the time that it should be a process of evolution and not revolution, and that the exact approach might differ from area to area, but the outcome must be the same: a railway that is predominantly run by a joint local team of people with an absolute commitment to the smooth running of the timetable whether they are planning essential repairs, responding to incidents on the line or communicating with passengers.
Today I am publishing more details about our plans, and an update on what we are doing and the steps we are taking to realise our ambitions. That publication, “Connecting people: a strategic vision for rail”, explains how we will create a new generation of regional rail operations with a relentless focus on the passengers, economies and communities they serve. It represents the biggest change to the delivery of rail services since privatisation.
Although we have already achieved significant structural improvements—with joined-up working between operators and Network Rail, and Network Rail’s own transformation into a series of regional route businesses—the document explains our plans to go much further. Where doing so will deliver real benefits for passengers, many future rail franchises will be run by a joint team, made up of staff from Network Rail and the train company, and headed by a new alliance director. That will make the railway more reliable for passengers by devolving powers to local routes and teams, and ensuring that one team is responsible for running the railways and the related infrastructure.
Today I am issuing the invitation to tender for the next south-eastern franchise. That will, among other things, deliver longer trains, providing space for at least 40,000 additional passengers in the morning rush hour. A simpler, high-frequency “turn up and go” timetable on suburban routes will boost capacity and provide a better service to passengers. As part of the unification of track and train, the day-to-day operations on the south-eastern network will be run by a joint team led by a new alliance director who heads both the train and track operations. On the east midland main line we will also introduce a joint team approach, bringing more benefits to passengers.
Hon. Members will know that the east coast main line has had its challenges in recent times, and I intend to take a different approach on that route. From 2020, the east coast partnership will run the intercity trains and track operations on this route. That partnership between the public and private sector will operate under one management and a single brand, overseen by a single leader. It will take a leading role in planning the future route infrastructure and meeting the challenges that it faces. Bringing the perspective of train operators to decisions on rail infrastructure will help to ensure that passenger needs are better represented in the process. While we run a competition to appoint the east coast partnership members, we are in discussions with the existing east coast franchise operator to ensure that the needs of passengers and taxpayers are met in the short term, and laying the foundations for the reforms I have just outlined.
I want the passenger to be central to train operators’ strategies. On some parts of the network, that will mean that we introduce smaller train companies. I am today launching a consultation on the great western franchise, to seek views on how it can best meet the needs of passengers and communities in the 2020s and beyond. We want to establish whether it should be retained in its current form or divided into smaller parts, with more of a local focus, to deliver best for customers. We will also begin the process of splitting up the Thameslink, southern and great northern franchise in 2021. The two franchises were put together with the intention of helping the implementation of the £6 billion Thameslink upgrade investment programme, which is now near completion.
Despite the improvements in the railway since privatisation, we are still some way from achieving the modern, high-performance, low-cost and customer-focused industry we all want to see. That is why we must continue to reform and invest in the railway, and maximise the contribution that both public and private sectors make to improving services. We will continue to deliver the biggest investment programme in our railways since the steam age, something the Labour party never did when it was in government.
Getting to grips with industry structure will go hand in hand with investment in infrastructure. We need new capacity to cope with growing demand, and new links to support economic growth and housing development. The great north rail project is transforming journeys across the north, providing faster, more comfortable journeys, new direct services and room for tens of thousands more passengers. Every single train in the north of England will be replaced with as-new or brand new stock—that change was never made when the Labour party was in power.
I intend to invest around £3 billion in upgrading the trans-Pennine route to deliver faster journey times and improved capacity between the great cities of Leeds, York and Manchester. In the south, flagship projects such as Crossrail and Thameslink are coming on stream and providing the capacity to underpin economic growth. Our investment in HS2 will bring north and south closer together, and bring benefits to people across the country. It is a new railway for a new era for rail. It is a bold and ambitious project, but if it were not for ambition and faith in the power of rail to transform the country, we would have no railways at all.
Our vision rejects the mentality of decline that characterised the railway in the second half of the 20th century. To complement record levels of private investment, we recently announced Government funding of up to £34.7 billion for the railway in the years 2019 to 2024, as part of an overall expected spend of £47.9 billion. That will support an overhaul of the network’s ageing assets and other vital work and improvements. Passengers value reliability more than anything, and this commitment will help to deliver it.
We also want to create new connections. We are establishing the East West Rail company to restore the rail link between Oxford and Cambridge that was lost to passengers in 1967 and to provide a major boost to the region. I expect construction work to begin next summer. We will look at other opportunities to restore capacity lost under Beeching and British Rail cuts of the 1960s and 1970s, where such projects would unlock development and growth, offer value for money and unlock the potential for housing.
Large projects and industry reform take time, but passengers want faster improvements in their day-to-day experience travelling on the railway. We do too, and we are doing something about it. We are pushing to have smart ticketing available across almost all the network by the end of 2018. We are improving arrangements for compensation and dispute resolution when things go wrong, including by supporting the establishment of a new passenger ombudsman. We are working with industry to extend the benefits of discounted rail travel, to ensure that all who are aged 16 to 30 can access appropriate concessions. We are investing in new digital technologies and better mobile connectivity. We are committed to improving the accessibility of the network and delivering a modern customer experience that is open to all.
I know that the Labour party does not believe this, but privatisation brought a revolution to our railways—that is why there are twice as many passengers as there were 20 years ago. But now is the time for evolution to build on that success: joining up track and train, expanding the network, modernising the customer experience and opening up the railway to innovation. We have a vision of a revitalised railway that is used to its full potential, delivered by a partnership between the public and private sectors, supporting people, communities and the economy. We are taking real action to make that vision a reality. I am making copies of the strategic vision available in the Libraries of both Houses, and the great western and south-eastern documents are now on the website of the Department for Transport. I commend this statement to the House.
Andy McDonald (Middlesbrough) (Lab)
I thank the Secretary of State for advance notice of his statement, the contents of which have already been well trailed in the media.
The Secretary of State and I can be in agreement on rail’s need for investment and new capacity, and I am delighted that he has picked up Labour’s manifesto commitment to reopen branch lines. The problem is that the current system and the structure of the railways do not lend themselves well to the receipt of new investment or the delivery of new capacity. The majority of the recent problems on the railway can be traced back to the planning for control period 5, when the Office of Rail and Road said that Network Rail had to make efficiency savings of 18%. The ORR got this wrong, and the railway has suffered the consequences.
We are where we are on rail, and I am afraid that the Secretary of State has, frankly, now run out of ideas for what to do with the railways, but Labour has a solution, which I will refer to in a moment. The Secretary of State proposes an alliance on the east coast line between track and train. This was done only a few years ago between Stagecoach and Network Rail on the south-west franchise, but Stagecoach pulled out because it was too expensive. Trains on the east coast may be labelled Virgin trains, but they are actually run by Stagecoach. What makes the Secretary of State think that this alliance with Stagecoach will be any different?
The Secretary of State says he will break up the GTR’s southern and great western franchises. GTR was always going to be broken up at the end of the contract in 2021, so this is not new. His calamitous oversight of the contract only adds to the urgent need to put the whole thing out of its misery for the sake of the passengers.
The Secretary of State says he will reopen lines. He announced the Oxford-Cambridge line a year ago. His new, privately funded line will operate with polluting diesel trains. What about the air quality? Labour supports reopening lines, but, without financial backing, the Secretary of State’s proposals mean nothing in reality. It is all well and good to reverse the Beeching cuts, but what about reversing the Grayling cuts to the great western, the midland mainline and northern railways? The Department’s website hails the reopening of the line
“from Blyth to Ashington in County Durham.”
If it is all right with him, I would prefer Blyth and Ashington to stay in Northumberland.
The Secretary of State’s proposals offer nothing for commuters on overcrowded trains who are facing a fare hike of 3.4% in January on top of the 27% rises since 2010. The truth is that the rail system is broken. No amount of rearranging the furniture will change this central fact. I regret that the Secretary of State cannot recognise or admit this.
Today’s announcement is a total smokescreen. We can put all this to one side; the real issue is that the east coast franchise has failed again and the taxpayer will have to bail it out. Markets do not lie, and the Stagecoach share price has risen by 12% this morning following the news that the Secretary of State has let it off the hook for hundreds of millions of pounds by ending the current franchise early. He has moved the goalposts to suit Stagecoach. He is tough on everyone except the private sector. Labour took the franchise into public ownership in 2009, and it should have stayed there. Conservative dogma put it back out to the market in 2015, and it has now failed again.
The Government’s proposals are more window dressing that will solve none of rail’s urgent problems. Only Labour has the vision and the courage to deliver the railway the public deserves. The public want public ownership of the railways, and the next Labour Government will deliver it.
Chris Grayling
Fortunately, this country will be waiting a long time for that to happen. What Labour Members really want is to take us back to the days of British Rail, but they have not explained to us how they would pay for all the new trains currently funded by the private sector, or how they would pay for longer trains and better services all around the country. What they do not tell us is that, with a publicly run railway, trains would have to compete for capital costs with hospitals and schools and we would just not get the investment we are currently getting in our railways. Going back to British Rail is simply no solution for the improvements this country desperately needs.
The hon. Gentleman asked a series of specific questions. What is different is what is happening within Network Rail. The devolution within Network Rail—more of a local focus, local decision making, local budgets—is absolutely crucial in making local partnerships possible. We are driving through that change right now, off the back of Nicola Shaw’s report on Network Rail, and it is the right thing to do for the future.
The hon. Gentleman talked about GTR, but I remind the House that the independent Gibb report showed that the GTR problems were substantially down to the actions of the hon. Gentleman’s friends in the unions. Such conduct was unacceptable, and the Labour party’s continuing support for the disruption that unions are causing to passengers on the railways is utterly unacceptable.
The hon. Gentleman asked a question about the Oxford-Cambridge railway line. I did actually give an update on that. Last year, I said we were going to do it. This year, I am saying that we are now ready to start work on that route in the next few months. This Conservative Government are delivering real improvements and real investment on the railways.
The hon. Gentleman also asked about the finance for reopening lines. He may have missed these announcements in the Budget, but I can assure him that there will be £2 billion more for investment in transport in our cities, and there will be £47 billion for investment in the railways over the next five years. We will, indeed, be funding investment in the expansion of the railways, because that is what is needed.
The hon. Gentleman asked a question about electrification. I say again that in a world where we have more flexible technology, I regard it as more of a priority to provide more services and more routes for passengers than to save one minute on the journey time to Sheffield and no minutes on the journey time to Swansea. I am doing what we need to do, which is to deliver better journeys, better journey times and new trains for passengers, which is what they want above all. They are not worried about how the trains are powered, but about whether they will have a nice new train that gets them to the right place, and that is what we are doing.
The hon. Gentleman raised a point about the Blyth-Ashington line. It is one of the projects I am looking at seriously. I think it has real potential to expand the investment we are already making in the Metro in Newcastle upon Tyne, and it is another example of this Government’s commitment to the north-east.
The hon. Gentleman asked what we are doing for commuters. All around the country, we and the private sector, together in partnership, are delivering new trains and longer trains to create more space for people who travel on our crowded railway lines each day.
On the hon. Gentleman’s last point, let us be absolutely clear for the House that as we bring the east coast franchise to a close and move to the new arrangements, no one will get any bail-out at all. It is absolutely clear that Stagecoach will meet in full the commitments it made to the Government as part of this contract, and that is what will happen.
Iain Stewart (Milton Keynes South) (Con)
I warmly welcome the commitment in the strategy document to the east-west railway line through my constituency and the announcement that its construction will start very soon. Will my right hon. Friend say a little more about when he expects the western section of the line to be up and running, and how this will feed into the National Infrastructure Commission’s recommendations on the Oxford-Milton Keynes-Cambridge corridor?
Chris Grayling
My hon. Friend is right that this is an important project. We have been pushing ahead hard with the new special purpose vehicle, which will be set up in the coming weeks. Construction is due to begin next summer, and my goal is to have the first trains running on that route by the end of 2021.
Alan Brown (Kilmarnock and Loudoun) (SNP)
I, too, thank the Secretary of State for early sight of his statement. Unfortunately, I am having to thank him for early sight of what is a disappointing damp squib. Given the media coverage last night about the possible reversal of the Beeching cuts, I hoped there would be some firm commitments in the statement, but there is nothing other than a throwaway line.
The Beeching cuts were typical of the Tory policy of knowing the price of everything and the value of nothing, and this attitude continues in the Secretary of State’s ideological adherence to privatisation. While he worships the private sector, he needs to remember that there are already four foreign state-owned rail companies operating existing UK franchises. If it is good enough for foreign state-owned companies, it should be good enough for UK state-owned companies to run the franchises. I hope that he supports the Scottish Government’s move to make a public sector bid in Scotland.
The Secretary of State trumpets the turnaround in rail since privatisation, but he does not say that it has been driven by a 90% increase in public sector investment and a real-terms fare increase of a quarter. That is where the real investment and the turnaround have come from. The Secretary of State’s real masterplan is to create alliances and effectively to sub-divide Network Rail, so I have the following questions. What is the overall governance structure to prevent inter-alliance conflict? Given that he is such a fan of devolution, will he devolve Network Rail to Scotland? Who will fund the new railcard for 26 to 30-year-olds? Will the smart ticket system automatically provide consumers with the cheapest fares? If he is considering reopening lines, will he stop the fire sale of Network Rail assets? He will be well aware that the Scottish Government built the biggest new line in the UK for more than 100 years, on the borders. Will he consider reconnecting Carlisle to the borders by rail? Finally, what are the statement’s funding implications for Scotland, and will he review the existing funding gap of £600 million in control period 6?
Chris Grayling
The hon. Gentleman has asked a mix of questions; let me take them in turn. On devolution, it remains this Government’s position that we will follow the recommendation, which was part of the broader devolution package, that the Scottish Government should be responsible for franchising but not for the infrastructure. The Scottish National party needs to demonstrate that it can do a decent job in government with the powers it has, rather than ask for more powers.
We are working through the railcard with the industry. The extra revenues may well mean that it will be a self-financing venture, but the Treasury has underwritten it in the Budget process. On the cheapest fare options, I want a system of smart ticketing on our railways so that, for future shorter journeys, we end up with the kind of pay-as-you-go technology that exists in London and other cities, so that people can tap in and tap out as they travel. For longer journeys, ticketing is likely to be based on mobile phones and barcodes. We are working to achieve those objectives as soon as possible.
The hon. Gentleman asked about the sale of assets. There are times when assets are genuinely not needed. They can be sold and the money put back into the railway line—that is the right thing to do—but of course there are assets that we need to protect for the future. Frankly, I wish that some assets had not been disposed of or built over, because that makes it more difficult to reopen some of the routes that I would like to be reopened. We will protect the assets we need.
I applaud the Scottish Government for what they have done with Borders Railway, which is a good project and has made a positive difference to that part of Scotland. I am happy to talk to my Scottish counterparts about how we can do more in the future.
The hon. Gentleman also asked about the funding settlement. As I have said before in this House, the funding settlement for Scotland for rail is based on the Barnett formula, which the SNP does not usually argue against. I do not think it can have its cake and eat it.
Tim Loughton (East Worthing and Shoreham) (Con)
I welcome the news that the GTR franchise is to be broken up. It is too big to be managed and has a management incapable of managing it, but given that it has frequently been unable to live up to its performance indicators, why do we have to wait until 2021 to get a competent operator in charge of a manageable franchise area?
Chris Grayling
The real thing we have to achieve is to get through the rest of the Thameslink investment programme. In the coming months, we will also do some significant works on the Brighton main line, spending the £300 million I committed last year to doing the big parts of the project around Balcombe, for example. I would not wish us to destabilise things during that period, but once that is done we will need to get on with making the change.
Lilian Greenwood (Nottingham South) (Lab)
Alliancing and joint teams can improve dialogue between Network Rail and operators, but that is not a fundamentally different proposition from what has happened before and what is happening now on certain segments of the railway. The underlying factors that contribute to the misalignment between operators and Network Rail—namely, separate performance regimes and financial incentives—simply do not appear to have been addressed. Will the Secretary of State set out the specific steps he intends to take to tackle those fundamental structural shortcomings, so that we finally have a railway that drives co-ordinated performance, cost-reductions and improved reliability?
Chris Grayling
We are already, in the alliance areas and, indeed, elsewhere, moving to aligned performance incentives and aligned key performance indicators. That work is already happening on routes such as great western, where a route board and key performance indicators are being increasingly aligned, so that Network Rail has an incentive to look after passengers in a way that has not always been the case in the past. When it comes to a joint venture on the east coast main line, the KPIs will be the same, because there will be one team doing it. That is the benefit of having somebody in charge, a joint brand, joint planning of budgets and joint KPIs in the same team. That is what is different from the past.
Steve Double (St Austell and Newquay) (Con)
I welcome the Secretary of State’s statement, this Government’s continued investment in our railways and the success that is possible only because of the partnership with the private sector. He will be aware that concerns have been raised about the break-up of the great western franchise. May I seek his reassurance that any proposals will not leave Devon and Cornwall isolated and that they will be introduced only if they are in the best interests of improving services to and from the south-west and provide value for money for the passenger?
Chris Grayling
First, let me be clear: I do not envisage a Devon and Cornwall-only franchise. That is not part of the plan. I am asking a legitimate question: should we go back to having, in effect, something like Wessex Trains and a franchise with its headquarters in the south-west, that provides regional services in the south-west and that could theoretically even do some of the long-distance services up to Paddington from Penzance? There are pros and cons to that. This is a consultation to ask the south-west what it thinks. It is no more and no less than that, and I want to get the right answer for the south-west.
Sir Edward Davey (Kingston and Surbiton) (LD)
I welcome today’s big message that our railways work better when track and train are operated together and the fact that the Secretary of State is now trying to correct the big mistake in the original rail privatisation, when his party separated track and train ownership. May I ask him, on behalf of my constituents in Surbiton, to consider the urgent safety case for a new staircase at platforms 3 and 4 at Surbiton train station, given how dangerously overcrowded they can become during the evening peak?
Chris Grayling
I am grateful to the right hon. Gentleman for his support for bringing back together the operation of track and train. If he wants to catch me offline, I would be happy to look at the issue he raises.
Martin Vickers (Cleethorpes) (Con)
I welcome the Secretary of State’s statement. He mentioned smaller railway operators. Will he clarify whether that includes open-access operators, and if so, does he foresee that leading to an extension of services such as those in my own area of northern Lincolnshire?
Chris Grayling
I am a strong supporter of open access, which plays an important part in the railways. The east coast main line has been a significant user of open access, or is a route on which there has been open-access operators. As we move into the era of HS2 and as we move express trains off some of the other routes, I expect there to be more, rather than less, scope for open access in the future. It is certainly not my intention for the open access available to my hon. Friend’s part of the country to be changed in coming years.
Mr Ronnie Campbell (Blyth Valley) (Lab)
The east coast main line was run for many years by a not-for-profit company and it made a profit for the Treasury, but that is not what I want to ask about. I have been campaigning for 30 years to reopen the Blyth and Ashington line. Now that that is on the cards, will the Secretary of State tell me when it will happen, so that I can tell my constituents? I do not want to have to wait another 30 years, because I will be dead.
Chris Grayling
I will do my very best to make sure that the hon. Gentleman will not have to wait that long. There is real short-term potential to reopen that route. I am not going to put a date on it today, but it makes a lot of sense to integrate it with the Newcastle-upon-Tyne Metro. We will push the project forward with feasibility and development plans.
Chris Grayling
We are going to press ahead with it in the immediate future and look at what will not happen. I am not going to give the hon. Gentleman an exact date—I never do that.
Mims Davies (Eastleigh) (Con)
Eastleigh is a historic railway town, and transport issues really matter in my thriving but getting-more-busy-and-congested constituency, which hosts Southampton airport. East-west connectivity between Portsmouth and Southampton on a railway line takes an hour. Will the Secretary of State commit to working across Departments to make sure that there is a joined-up approach for constituencies that not only provide housing, but are blighted by air pollution, congestion and a historic lack of investment in railway lines?
Chris Grayling
I give my hon. Friend that assurance. It is really important that, as we seek to develop more housing, we make sure that infrastructure is in place to cope with it, whether road, rail or cycle routes, or different forms of public transport in different parts of the country. I assure her that I and my right hon. Friend the Secretary of State for Communities and Local Government, who is in charge of the housing infrastructure fund, will look supportively at those parts of the country that are being asked to take on housing development and see how we can best provide infrastructure for them.
Mr Ben Bradshaw (Exeter) (Lab)
I echo the concerns expressed by the hon. Member for St Austell and Newquay (Steve Double) about the idea of breaking up the great western franchise because of the loss of ability to cross-subsidise from the more profit-making parts of the region to the more expensive parts in the far south-west. Exactly how much extra taxpayers’ money is he handing over to Stagecoach as a result of the Government’s botched and ideologically driven reprivatisation of what was a perfectly good and profitable publicly owned company?
Chris Grayling
The answer is that at this stage we have not yet reached final arrangements. My intention is not to hand over money, but to get the railway line in a preparation stage for the establishment of the east coast partnership. With regard to the great western franchise, this is genuinely a consultation. There are two options: we could continue with the great western franchise as it is, or we could create a second franchise that is focused on the south-west. I have heard both arguments. I am committed to having more accountability and better transport in and around the south-west, which is why we are finally dualling the A303, for example. This is a genuinely open consultation and I want to hear views about it.
James Cartlidge (South Suffolk) (Con)
I very much welcome my right hon. Friend’s statement. I totally support greater unification of train and track. For my constituents, it is absolutely maddening that when we have problems on the railway—unfortunately, we frequently do on the great eastern main line—Network Rail and the train operator can argue about who is to blame, because our constituents want a single body to point a finger at. Will he confirm that there will be far simpler accountability under these structures, and that when our Greater Anglia franchise expires, we will have the opportunity to look at this sort of regional arrangement?
Chris Grayling
I can absolutely give my hon. Friend that assurance. I think that this approach should spread across the whole rail network, with clearer accountability, clearer integration, clearer joint working when something goes wrong and better joint planning for maintenance works and affected services. That is a really important part of ensuring that the railways work for the future.
Mr Dennis Skinner (Bolsover) (Lab)
Why did the Secretary of State not use this opportunity to say that there would be electrification of the whole of the midland main line, instead of it stopping somewhere in Northampton to suit commuters travelling into London? The other business is that people in my constituency have been asking him for a meeting to try to put to him an alternative to the HS2 spur that will wreck 30 houses in a tiny village in my area. When will he answer their letter? He can tell me now.
Chris Grayling
On the hon. Gentleman’s latter point, my hon. Friend the Rail Minister has already extended an invitation to that meeting, so we will happily talk to the hon. Gentleman’s office this afternoon and fix a date. With regard to the midland main line, we are in the early stages of what is the biggest investment programme in the line since the 1870s. It will mean faster journeys and brand new trains, years earlier than would otherwise have been the case. We can deliver those new trains in 2021-22. We could wait several years more for those new trains. We could spend £1 billion more, but all we would be doing is saving a minute on the journey time to Sheffield. I could be wrong, but I do not think that would be a terribly good use of taxpayers’ money.
Amanda Milling (Cannock Chase) (Con)
I, too, welcome my right hon. Friend’s statement. What steps are being taken to improve stations, and particularly to improve disabled access at stations such as Rugeley Trent Valley?
Chris Grayling
I absolutely share my hon. Friend’s concern. Indeed, my hon. Friend the Rail Minister has made improving accessibility on the rail network a particular part of his work. We will continue accessibility funding in control period 6, and the opportunity will be there for individual stations and areas to come forward with proposals on how we can do better in what is an extremely important challenge that the rail industry faces.
Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)
It is a year and a half since the then Under-Secretary of State responded to our calls to look at extending the borders rail link—incidentally, it was delivered on time and under budget by the Scottish Government—to Carlisle, and she said that she was interested in looking into that. Will the Secretary of State now take those discussions forward with the Scottish Government?
Chris Grayling
I am happy to take forward those discussions with the Scottish Government. Indeed, my hon. Friend the Rail Minister is meeting the borders rail campaign shortly. We absolutely understand the benefits that the project, which the Scottish Government have already delivered, has brought to the borders.
Mr Bob Seely (Isle of Wight) (Con)
Is my right hon. Friend aware that on the Isle of Wight there might be interest in extending the island line to the beautiful seaside town of Ventnor and the county town of Newport—the latter has been made possible in part due to the foresight of the Isle of Wight steam railway in securing track in decades past? Will money be available for feasibility studies to assess the costs and benefits of opening up, for economic regeneration purposes, former branch lines that were closed in the ’60s?
Chris Grayling
In the new year we will publish a new process for evaluating new projects and moving them into development. I will happily talk with my hon. Friend about how that process will work and how he can have his project on the Isle of Wight considered.
Rachel Reeves (Leeds West) (Lab)
I have written to the Secretary of State about Kirkstall Forge railway station in my constituency. It opened just over a year ago, but only one train stops there an hour. If we are going to open new railway stations, we must have trains stopping at them. Will the Secretary of State agree to meet with Arriva Rail North and myself to talk about the frequency of services at Kirkstall Forge, so that we can get maximum benefit out of this housing and business development?
Chris Grayling
I am happy to have that conversation. When a new station opens, it is not unusual for it to start with an hourly service while the passenger ridership builds. Of course, as demand grows, services tend to grow. I am just delighted that we are able to invest in better station facilities in the hon. Lady’s constituency, which I am sure she will agree were long overdue.
Kevin Foster (Torbay) (Con)
I welcome the overall thrust of this plan. As the Secretary of State will know, it is probably no coincidence that the current GWR franchise covers roughly the same area that the railway company did back in the 1930s, so it is interesting to note the proposal to split. Can he reassure me that in any consideration of this the top priority will be services to passengers, particularly maintaining direct links between London Paddington and Paignton?
Chris Grayling
I can absolutely assure my hon. Friend that we want to see those services protected. Again, this is a genuine consultation. I do not have a pre-set view; I am relaxed and I want to listen to those people who represent the south-west and ask, “What works best for the constituents you represent?” We will listen and respond accordingly. There is certainly no prejudged view in the Department about what the right way forward is; we are simply asking the question.
Chris Elmore (Ogmore) (Lab)
The Secretary of State’s U-turn on his promise to electrify the line from Cardiff to Swansea included all the safety improvements that were part of that work, including the plan to close the level closing in Pencoed in my constituency. Can he set out, as part of his grand vision for the railways, how he will now invest in closing dangerous level crossings? While he is at it, will he explain how he will keep the promise on highway improvements in the same town, which were linked to rail electrification?
Chris Grayling
Safety remains fundamentally important for Network Rail. We are fortunate enough to have the safest rail network in Europe. Network Rail has a rolling programme to replace dangerous level crossings, which will continue in all circumstances. I think that the Welsh Labour Government are rapidly reaching the same conclusion that we are reaching, because the versatility of bi-mode trains means that we do not always have to erect overhead cables. The hon. Gentleman talks about us making the wrong decisions, but I caution him to wait and see what the Welsh Government decide to do, because he might find that the Labour party agrees with us on the best way forward.
Maria Caulfield (Lewes) (Con)
I welcome the announcement that the southern and Thameslink franchise will be broken up—it cannot come soon enough for my constituents. Can I ask specifically about the line reopening, because we have the Lewes to Uckfield line in my constituency, with the BML2 scheme, which could be opened very easily, improving connectively and putting towns such as Seaford and Newhaven on a main line for the first time? We have private investors willing to put up over £15 million to fund that. Will the Secretary of State use that scheme as one of the first to illustrate what can really be done?
Chris Grayling
My hon. Friend knows that I have met the investors who are interested in pursuing that project, and I have said that I am very open to doing so. I am waiting with interest for them to come back with the first stage of their work. I would be delighted to see the route reopened, and I hope that the consortium pursuing the project will prove successful.
Jessica Morden (Newport East) (Lab)
There was little mention of Wales in the Secretary of State’s letter to hon. Members on the great western consultation, yet key services run through my constituency. Just this morning, commuters to Bristol and beyond have yet again had to highlight the chronic lack of capacity as demand grows. Can he tell my constituents when they will see real action and improvement?
Chris Grayling
Of course, much of the responsibility for local services in the hon. Lady’s constituency lies with the Welsh Government, and I am looking forward to seeing the outcome of their work in delivering new trains and better services as part of the new franchise. As for what we are doing in her constituency, there is the electrification programme into Paddington and the investment in the intercity express trains, which are providing faster and better journeys, but I am expecting and hoping for a significant increase in services from Cardiff eastwards as part of the Wales and the borders franchise, which is one reason why we support the plan for Cardiff Parkway station. I am hoping for a significant enhancement, as part of that franchise, to the connections from Cardiff to Newport and Bristol.
Peter Aldous (Waveney) (Con)
I thank the Secretary of State for his statement. The east Suffolk line, which runs from Lowestoft to Ipswich, dodged the Beeching bullet and is now going from strength to strength, with a regular hourly service. Will he give an assurance that his improvements will provide the framework for further improvements, including a more frequent and faster service?
Chris Grayling
One of the things I am pleased we are doing in partnership with the private sector is the complete transformation of the train fleet across East Anglia. Every single train will be replaced with brand-new trains that have more capacity for passengers. As demand grows, we will have to look again at routes such as my hon. Friend’s to see whether there is a need for more services. In the immediate future, however, I hope that his constituents will be delighted to see the brand-new trains arriving to deliver a better journey for them.
Paul Flynn (Newport West) (Lab)
I am struck by the contrast between, on the one hand, the strength and wisdom of the best Select Committee report of my time in Parliament, the unanimous 1993 report by a Tory-dominated Committee chaired by the Secretary of State’s late colleague, Robert Adley, which forecast accurately all the problems that privatisation would bring, and, on the other hand, today’s statement, which seems nothing more than a piece of vacuous window dressing designed to distract us from the Government’s collapsing policies on Brexit.
Chris Grayling
There is nothing like trying to shoehorn every issue into one question, is there? The simple reality is that back in the 1990s our railways were in a state of decline—routes and stations were being closed, and there was even a plan to turn Marylebone station into a coach station. That was the reality of the days of British Rail. In the past 20 years, we have seen new trains, new routes and double the number of passengers. The problems today are the problems of success, not failure. That is why the approach in today’s statement is the right one. It is not designed to tear everything up and start again; it is designed to evolve the railways so that they are better placed to deal with the challenges that result from success.
Mr Philip Hollobone (Kettering) (Con)
The last Labour Government halved the mainline northbound service from Kettering from a half-hourly service to an hourly service, but since then the significance of Kettering on the railway network has increased: there are now more passengers; it is effectively the hub between the commuter service to Corby and the main line northwards; and it is now to be the interface between the electrified part of the line and the diesel-operated part of the line. Will my right hon. Friend agree that Kettering would therefore be the ideal base for the new train and track operating team?
Chris Grayling
Kettering is a fine town and a well represented constituency, and I can absolutely understand the case that my hon. Friend and Kettering would make for its hosting the operating team. He is absolutely right that it is at the heart of the midland main line. It might have some competition from Derby and others, but he makes a strong case.
David Hanson (Delyn) (Lab)
The Chancellor of the Exchequer mentioned in the Budget last week the north Wales growth deal, which includes a proposal for a metro linking north Wales and the north-west of England much more effectively. Has the Secretary of State received a cheque from the Chancellor?
Chris Grayling
Actually, it was my suggestion that we look at the project. I have listened to the right hon. Gentleman and understood the argument, and the Chancellor has provided development funding so that we can take that work forward.
Will Quince (Colchester) (Con)
Building alliances and closer working between Network Rail and train operating companies into franchises is a welcome move, but I would be grateful if my right hon. Friend could advise us on how Network Rail will ultimately be held accountable for meeting the terms of future franchises or contracts, just as the train operating companies currently are. Also, will that mean that infrastructure improvements will now be considered as part of the franchising process?
Chris Grayling
On the latter point, they can be now—there is nothing to prevent train companies from coming forward with small-scale infrastructure proposals. I would be happy to see the private sector come forward with plans, for example, to introduce digital signalling on routes, but we will not move the infrastructure itself out of public ownership. The accountability comes from the performance measures we put in place for Network Rail and the people who lead it, but I think that devolution to individual routes will mean better services, a more local focus and more out-of-the-box thinking, which Network Rail needs to do if it is to deliver best value for everyone involved.
Rosie Cooper (West Lancashire) (Lab)
My constituents will be listening with avid interest, because prior to the general election, the Transport Secretary visited my constituency and said that the reinstatement of the Burscough curves between Burscough, Preston and Ormskirk would be a “quick win” to help improve rail services in the north. When will we get this “quick win”? When will funding for that project, for electrification in the area and for the Skelmersdale railway station be forthcoming? My constituents look forward to him keeping his promise.
Chris Grayling
Of course, the people of West Lancashire will be getting the benefit of the investment programme in the line from Manchester to Blackpool. It is a huge investment in improving the services on that route. That, right now, is our priority. After that, I hope we will move forward with other projects that can make a difference to passengers in Lancashire and elsewhere in the north-west.
Jo Churchill (Bury St Edmunds) (Con)
I welcome the Secretary of State’s statement and the focus on passengers in particular. He will know that 30% of passenger improvements on Abellio Greater Anglia were due to the new fleet, but that 60% were due to the track. The Oxford-Cambridge line does not end at Cambridge, but goes through to Felixstowe and carries most of the freight for this country, so may I urge him to make Horley junction and Ely junction key priorities in order to deliver better services for both passengers and the freight industry?
Chris Grayling
I can certainly give my hon. Friend that assurance and reiterate the commitment I have given to people in East Anglia that in control period 6 the work on Ely junction will free up both freight and passenger access through that important junction and open up all kinds of opportunities across East Anglia. That will be an early priority for us.
Clive Efford (Eltham) (Lab)
My constituents are used to travelling on trains where there is a link between those who run the track and those who run the rolling stock, but that body is the publicly run Transport for London, and the Secretary of State refuses to allow it to have anything to do with the south-eastern franchise based on the fact that we have a Labour Mayor. My constituents deserve better than his petty political grievances. Will he allow TfL to demonstrate that it is capable of running the franchise more efficiently than the private sector has done hitherto?
Chris Grayling
I would make two points. First, Transport for London does not run the track and the trains. The trains are run as part of a franchise by Arriva. Secondly, I can assure the hon. Gentleman that what we have outlined today—more services and longer trains on the south-eastern line—is a lot better than what TfL offered in its business plan. My concern is to deliver a better service for his constituents rather than unnecessary political shuffling.
Liz McInnes (Heywood and Middleton) (Lab)
What talks has the Secretary of State had with the Northern Powerhouse Minister about the upgrading of the trans-Pennine route, and will he consider linking up the great cities of Liverpool and Newcastle, as well as Leeds, York and Manchester?
Chris Grayling
Absolutely. The key point about the trans-Pennine upgrade is that we have already electrified it from Manchester to Liverpool. That bit of the project has been done. The next bit is from Manchester to Leeds to York. I have said that that will be a £3 million programme. It is the next big rail investment project. I am expecting Network Rail’s detailed proposals shortly. It will be the next big project we go ahead with and will make a big difference to the north.
Peter Heaton-Jones (North Devon) (Con)
I warmly welcome the announcement today of a consultation on the great western franchise and the improvements it will bring to passenger services in Devon and beyond, but may I seek my right hon. Friend’s reassurance that there will be a focus in that process on the one rail service that serves my constituency—that between Exeter and Barnstaple? It is not just a quaint tourist line used in August; it is a vital part of north Devon’s economic infrastructure.
Chris Grayling
It certainly is, and I do not want that service to be diminished in any way. My hon. Friend will be interested to know that one of the routes on which we intend to start passenger services again—and we are actively engaged in that work—is the line from Okehampton to Exeter. I think that has the potential to ease congestion at Exeter, and to provide a better commuter route.
Vernon Coaker (Gedling) (Lab)
Will the Secretary of State tell us why he is not electrifying the midland main line even though every single business organisation, Member of Parliament and local council is telling him that that is what he should do? Why is he ignoring the wishes of local people and local representatives, saying that he knows best, and simply offering them a “joint team approach”, whatever that is?
Chris Grayling
The answer to that is very simple. Over the next four years, we will deliver the biggest upgrades to the midland main line since the 1870s. We are straightening tracks to improve line speeds, and resignalling in places such as Derby. The programme will deliver faster journey times—it will take 15 to 20 minutes off the journey to Sheffield—and we will deliver brand-new trains on that route in the early 2020s. I could then go further and electrify the route all the way to Sheffield, but all that I would be doing is delaying the arrival of new trains and saving one minute on the journey time to Sheffield, at a cost of £1 billion. I think that we should deliver what passengers want—better journeys, faster journeys and new trains—more quickly, and that is what we are going to do.
Huw Merriman (Bexhill and Battle) (Con)
On my own behalf and that of my neighbour and right hon. Friend the Member for Hastings and Rye (Amber Rudd), I thank the Secretary of State—who has visited our area and seen the potential there—for the proposals on page 31 of the south-eastern rail franchise stakeholder briefing document, which will deliver faster trains from Hastings with fewer station stops, and, crucially, require any bidder for the franchise to pay attention to the potential for high-speed rail to be extended to Hastings, Rye and Bexhill. Does he agree that that will unlock regeneration in our constituencies?
Chris Grayling
My hon. Friend is absolutely right. We get caught up in the biggest projects, but sometimes the smaller ones—even a bit of track realignment in places—can make the biggest difference. I hope to do big things, such as the trans-Pennine upgrade, but also smaller things at, for instance, Ashford, where we are trying to improve the situation for passengers.
John Woodcock (Barrow and Furness) (Lab/Co-op)
As the Secretary of State will know, the Cumbria coastline and the Furness line are giving a dire performance at the moment. It is disappointing that Cumbria was not mentioned in the strategy. Will he ask the Rail Minister, the hon. Member for Blackpool North and Cleveleys (Paul Maynard), to meet us to discuss what can be done about the 50-year-old locomotives that are breaking down and annoying residents, the terrible state of the rolling stock, and the awful standard of reliability? There is an urgent need to fix all that, otherwise there will be significant damage to the economy.
Chris Grayling
I am delighted to be able to remind the hon. Gentleman that we are scrapping all those trains on that route and getting new ones. We are also introducing better services, including Sunday services. All that is being rolled out now. We have a partnership with the Labour leaderships in the councils of the north and Transport for the North, and we have been working side by side to shape the new franchise and the replacements for the rail fleets, for which the Government are paying. Those trains are on order, and the first new trains are now entering service in the northern networks and the trans-Pennine network. Every single train in the north of England on every single route is being replaced—either completely refurbished as new, or scrapped. The old Pacer trains on the Cumbrian coastline, which should have been scrapped years ago and were not under Labour, are being scrapped by us now.
Lucy Frazer (South East Cambridgeshire) (Con)
I noted, both in the rail strategy—which I welcome—and in the Secretary of State’s reply to my hon. Friend the Member for Bury St Edmunds (Jo Churchill), a reference to improvement works at Ely North junction. Can the Secretary of State assure me that when those works—which will benefit the entire region and take freight off the road—are completed, my constituents in Queen Adelaide will not be disadvantaged?
Chris Grayling
Our aim is always to minimise the impact of improvement works as they are happening, and also their consequences. I assure my hon. Friend that we will work with her and her constituents to ensure that this is a beneficial investment for her part of the world, and that where it has any impacts, we will minimise them as far as is possible.
Kate Green (Stretford and Urmston) (Lab)
I noted what the Secretary of State said about compensation for passengers when things go wrong. He is aware, I know, of the appalling service that Northern Rail is currently providing in my constituency. Could a more flexible compensation system be introduced? Delay Repay does not capture the full experience that my constituents are having.
Chris Grayling
My hon. Friend the Rail Minister and I are working to create a passenger ombudsman, because we recognise that there are circumstances in which a conventional repayment system does not reflect the problems that someone has experienced, and that will happen shortly.
Kelly Tolhurst (Rochester and Strood) (Con)
I thank my right hon. Friend for the statement, and particularly for what he said about the south-eastern franchise. It is necessary because of the significant amount of house building that will take place in north Kent over the next 20 years, and because there will be extra capacity and more seats for my constituents, who have been complaining about the service for a long time. Are there any further plans to increase capacity on the wonderful High Speed 1 network? My constituents who want to use that service often complain about the lack of seats and the inadequate number of trains available.
Chris Grayling
My hon. Friend is absolutely right. The high-speed trains to St Pancras are pretty full at peak times. We have talked to the bidders about that, and I know that they are thinking about how best to tackle the capacity challenge. We will see what happens when the bids come through, but I know that the issue is on everyone’s radar.
Nick Thomas-Symonds (Torfaen) (Lab)
In 2014, the last Tory Prime Minister described electrification of the great western main line across south Wales as ”transformational for communities” and “huge”. Given that the Government have now cancelled electrification from Cardiff to Swansea, why should my constituents, or anyone else, believe Tory promises on rail again?
Chris Grayling
The answer is that we are delivering much faster connections to south Wales. The huge investment in the great western main line, not just in electrification but in improving the track and the signalling, will make a transformational difference to the south Wales economy. We are spending money to ensure that the new intercity express trains can go west of Swansea, and brand-new intercity express trains are already travelling from Swansea and delivering better conditions for passengers. If we erect overhead cables between Cardiff and Swansea now, it will cost several hundred million pounds and deliver no extra benefits to passengers—not even a minute off the journey time—which is why that does not make any sense.
Diana Johnson (Kingston upon Hull North) (Lab)
I was disappointed that the Secretary of State did not attend the debate on transport in the north on 6 November. He has talked about his priorities for transforming services in this country. Which does he think will happen first, Crossrail for the north between Liverpool and Hull or Crossrail mark 2 for London, between Surrey and Hertfordshire?
Chris Grayling
Those two projects will happen in lockstep. They are both important, they are both going to happen, and we are going to steer them in parallel.
Chris Bryant (Rhondda) (Lab)
The journey from Paddington to Cardiff is regularly a version of hell. Trains are frequently cancelled, and then everyone has to pile on to the next train, often an hour later. My constituents tell me that it is often announced that a train will not set off for another 20 minutes because it is too overloaded to be safe. At the weekends, instead of putting on extra trains after international matches, the company puts on fewer trains, which means that hundreds of people are standing for four hours. That is simply unfair and wrong. When will the Secretary of State put it right?
Chris Grayling
The hon. Gentleman will be delighted to see the arrival of the new Hitachi intercity express trains, which will have more seats and more capacity. They will replace trains that are well out of date, and will provide a faster, better service for passengers.
Ian C. Lucas (Wrexham) (Lab)
I thank the Secretary of State for helping to secure extra money for north Wales in the Budget, but that was for the development of a business case for the Wrexham-Bidston line, which is merely a taster. Will he please help to deliver the main course of the north Wales growth deal, which will unlock growth in one of the most effective and forward-looking areas of the national economy?
Chris Grayling
I know that the hon. Gentleman is after not just the hors d’oeuvre but a second course. That second course will probably be the Crewe hub, on which we are working carefully at the moment, but I thought that he at least deserved an appetiser. I buy the argument that the present situation as trains head north from Wrexham is not right, and I am therefore delighted that the Chancellor agreed to fund the development work for that scheme.
Grahame Morris (Easington) (Lab)
I give the Transport Secretary credit for acknowledging the failure on at least two occasions of the private franchise running the east coast main line. My recollection is that when it was operated by the UK state-owned Directly Operated Railways it generated more than £100 million in profit for the Treasury, which could be used for vital public services. What assessment has he made of the additional costs of the private-public sector partnership, and would it not be better to use the profits to extend the Tyne and Wear Metro into Easington rather than swelling the coffers of privately operated train companies, often German, Dutch and Spanish Government-owned?
Chris Grayling
There is a curious conundrum in this. We hear so much uncertainty from Labour about what they think about Brexit: they seem to want to stay in the single market and continue to operate in the traditional way, but they do not want to work with train companies from other countries. That is a bit illogical.
I am delighted that we as a Government are finally investing—in a way that the hon. Gentleman’s party did not—in rail in the north-east. The investment in trains on the Metro and the plans to extend it are the right things to do to help his constituency and the economy of the north-east, and I am very proud to be able to deliver them. It is also worth saying that the private sector franchise on the east coast main line has been contributing more to the Treasury than the public sector one did.
Paula Sherriff (Dewsbury) (Lab)
I wrote to the Secretary of State on 23 October and eagerly await his response. My constituents are, frankly, fed up with chronically overcrowded and unreliable trains and substandard services. What action is being taken to monitor the performance delivered by the train operating companies?
Chris Grayling
The good thing from the hon. Lady’s point of view is that, although she is right that her constituency has old, overcrowded trains that are not long enough, we are replacing them with new longer trains. That will make a transformational difference to the travelling experience of her constituents and others right across the north.
Mr Gavin Shuker (Luton South) (Lab/Co-op)
I have read the Secretary of State’s document published today and was perplexed that there is no reference to mutual operators. I can only assume that that is an oversight, given that they provide democratic control, work within the existing framework he has laid out in this document, and reinvest their profits for the value of all passengers. Given that, will he or his Rail Minister commit to a short meeting to talk about the barriers faced by mutual operators?
Chris Grayling
I can only say that I will be very happy to see an employee-owned bid come forward. There is no barrier to that happening at all. I will be very happy to see a partnership between employees and investors come forward, and if there are artificial barriers to that happening, I am happy to see whether we can remove them.
Ben Lake (Ceredigion) (PC)
Every line that could be reopened, as outlined in the Secretary of State’s strategic rail vision, appears to be in England. The Aberystwyth to Carmarthen line was closed under the Beeching cuts, and reopening it not only enjoys considerable support in Ceredigion but could serve to significantly boost the economy of west Wales. Will the Secretary of State agree to meet me and the campaign group to discuss ways of adding that line to his map of lines that could be reopened?
Chris Grayling
We have a clear responsibility for Welsh infrastructure, and I want it to improve in a way that provides extra services for passengers and better routes, hence the Wrexham to Bidston investment that I expect us to make. The Rail Minister, my hon. Friend the Member for Blackpool North and Cleveleys, will be very happy to talk to the hon. Gentleman and the campaign group about that route; I am aware of it, and was, in fact, talking about it the other day to people in Wales. I am well aware that people want that project to be opened, but I should also make it clear that, as we invest in reopening routes, they have to either unlock economic opportunity or housing opportunity or break up a real point of congestion. We cannot simply recreate old routes that no longer have a commercial purpose.
Jo Platt (Leigh) (Lab/Co-op)
The Secretary of State will be aware from my communications of the importance of rail connectivity in my constituency of Leigh, which is the fifth largest town in the country without a railway station. Following the publication of his report today, the industrial strategy and the social mobility reports, which all highlight the importance of connectivity for social and economic purposes, will he confirm that my constituency will be, or has been, considered for the reversal of the Beeching cuts?
Chris Grayling
The hon. Lady makes a good point, and of course I want significant towns to be well served by the railways. I know she is meeting my hon. Friend the Rail Minister a little later this afternoon, and we will listen very carefully to what she says.
Darren Jones (Bristol North West) (Lab)
My constituency is on the brink of daily gridlock due to welcome but significant developments in housing and travel-to-work routes that are not fit for purpose, so I welcome the reference to the Portishead line and the Henbury line in this strategy, but the solution is the Henbury loop line. Will the Secretary of State commit in his conversations with the Conservative metro Mayor for the west of England to reiterating the advice given by his Department to my predecessor—that an independent business case study should be funded for delivery of the Henbury loop line?
Chris Grayling
I spoke to the metro Mayor this morning about this and the investments we need, and also about North Filton railway station. He clearly has a strong agenda to take forward investment in the suburban service around Bristol. I have also been to the port and looked at the point on the putative Henbury loop that would be the issue. We need to resolve that, and I absolutely understand the need to get those services working well.
Madam Deputy Speaker (Mrs Eleanor Laing)
The prize for patience and perseverance goes to Luke Pollard.
Luke Pollard (Plymouth, Sutton and Devonport) (Lab/Co-op)
Thank you, Madam Deputy Speaker.
Fragmentation of the great western franchise risks locking in a poor deal for rail for the far south-west, so will the Secretary of State take this opportunity to match the commitment given by the shadow Secretary of State for Transport to fund the peninsula rail taskforce recommendations for faster journeys and a more resilient railway, and to ensure that we can unlock the investment we need for Plymouth, Devon and Cornwall?
Chris Grayling
I reiterate my point that this is a consultation, and I want views from all sides. We will make a change only if it is the right thing to do. We are not going to create a little fringe franchise just for Devon and Cornwall, cutting them off. If we make a change, it will be to have much more of a south-western franchise serving the region, providing good links locally.
The peninsula rail taskforce’s top recommendation was that we need to deal with the issue of the cliffs at Dawlish. The work on developing the solution to that is happening now, and that is critical to making sure that the route is resilient. That is my No. 1 rail priority for the south-west, and I give an absolute guarantee to the House that, as long as I am Transport Secretary and beyond, my party is committed to delivering a solution to prevent the real risk that those cliffs represent.
Rail Update
Lord Grayling Excerpts(7 years, 11 months ago)
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The Secretary of State for Transport (Chris Grayling)
I am today publishing “Connecting people: a strategic vision for rail”, which describes our vision for the railways, and the actions we are taking to make it a reality. We are bringing the organisations that run the tracks and trains closer together to deliver better services for passengers. We are pressing ahead with Network Rail devolution to a series of route based business. We are investing in upgrades to the network to deliver faster journey times, more capacity and unlock growth. We are also improving the customer experience, including smart ticketing.
I am making copies of the strategic vision available in the Libraries of both Houses.
I am also today announcing a consultation on the future of the Great Western franchise, and issuing the invitation to tender for the next South Eastern franchise.
These documents are now available on the website of the Department for Transport.
Attachments can be viewed online at: http://www. parliament.uk/business/publications/written-questions-answers-statements/written-statement/Commons/2017-11-29/HCWS281/ .
[HCWS281]
Road Haulage
Lord Grayling Excerpts(7 years, 11 months ago)
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The Secretary of State for Transport (Chris Grayling)
The impact of disruption at the port of Dover and Eurotunnel in Kent can lead to significant congestion in that county and further afield. In the event of such disruption, Operation Stack is deployed which queues lorries on the M20 until they can access their ferry or train, closing parts of the motorway to other traffic. However, it has been accepted that this is not an ideal contingency solution particularly given the impact it has on the M20, the surrounding roads, and in particular on people and businesses in Kent.
Following significant and long-running disruption in the summer of 2015, due to French ferry employee industrial action and migrant activity in France, Operation Stack was deployed for over 30 days that summer. The Government determined to find a solution to the issue and announced that a new lorry holding park would be built at Stanford West in Kent. The lorry park was to be designed to mitigate the worst impacts of Operation Stack by taking lorries off the road until they could be released to Dover or Eurotunnel.
However, in October 2016 this decision was judicially reviewed on the grounds that the Government had not properly taken into account the environmental impact on a local business and the area in which the lorry park would be built.
Today I am withdrawing the earlier decision to site a lorry park at Stanford West on the grounds that the Government can no longer defend the judicial review. My Department and Highways England have, since being judicially reviewed, tried to find a solution so that the lorry park could be delivered as quickly as possible to mitigate the impacts of Operation Stack, while also meeting our environmental obligations. However, it has not proven possible to do so.
But I can announce today that we are immediately starting the process to promote a lorry park through the normal planning process, including a full environmental impact assessment, as a potential permanent solution to Operation Stack. As part of this we will reassess the scope, scale and location of our solutions, taking into account changes since the original concept of the lorry park was promoted, in particular the UK’s exit from the European Union but also the need for “business as usual” lorry parking in Kent. Highways England intend to consult on the options in early 2018 with a view to submitting a planning application in 2019.
Alongside this, I have tasked Highways England with developing an interim solution to be in place by March 2019. Highways England have developed a number of options that, while continuing to hold HGVs on the M20, would allow non-port traffic to continue to travel in both directions reducing the levels of traffic disruption seen in Operation Stack. This could, for example, be through holding HGVs in the centre of the motorway rather than on the coast-bound carriageway. Different technologies ranging from steel barriers to moveable barrier systems could be deployed to deliver these solutions. A final decision on which option to take forward will be made in early 2018, with a view to completing delivery by March 2019.
Specific investment decisions on both the permanent and interim solutions will, of course, be subject to normal considerations of affordability and value for money.
Today’s announcement demonstrates that despite the setback to our plans to build a lorry park at Stanford West, the Government are still serious about finding both short and permanent solution to help tackle the traffic disruption that can occur from disruption at our busiest border for lorry freight.
[HCWS246]
Aviation Update
Lord Grayling Excerpts(8 years ago)
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The Secretary of State for Transport (Chris Grayling)
This time last year, the Government selected a new north-west runway at Heathrow as its preferred scheme for delivering much-needed new airport capacity in the south-east. This was a move made in the national interest—to spread the opportunity to travel and trade throughout the UK, through more flights between our global aviation hub and our regional airports.
In the last 12 months we have published a draft airports national policy statement (NPS), and been listening to views through a major consultation exercise. We have also published a new national air quality plan and taken steps to address the impact of noise around our airports, which are set out below. Heathrow airport has been working with airlines to bring down the cost of the proposed scheme, in line with the ambition I set out to keep landing charges as close as possible to current levels. Now that the Select Committee has been reconstituted, we remain on track to bring forward a final airports national policy statement for a vote in this House in the first half of next year.
Today I am publishing updated aviation demand forecasts which show that the need for additional runway capacity is even greater than originally thought. They show that all five of London’s main airports will be completely full by the mid-2030s, and four of them within a decade. Crucially, they also show us that the north-west runway scheme at Heathrow is the one which delivers the greatest benefits soonest. In addition, it continues to offer the greatest choice in terms of destinations and frequency of vital long-haul routes. Heathrow handles more freight by value than all other UK airports combined and it has superior connections to the rest of the UK through road, rail and domestic flights.
Today I am beginning a short period of consultation on the draft airports NPS to allow people to consider these updated forecasts, alongside other new evidence which was unavailable at the time of the initial consultation. This includes the national air quality plan which was published in July 2017. Updated analysis of this shows that the Heathrow north-west runway scheme can be delivered without the UK breaching its air quality obligations. We will continue to ensure that if expansion goes ahead at Heathrow, it is delivered according to air quality obligations through a suitable package of mitigation and policy measures.
This period of consultation will focus on those elements of the draft airports NPS affected by the updated evidence and will run for eight weeks until 19 December. I have asked Sir Jeremy Sullivan to continue in his role as an independent adviser to oversee this process, and I am grateful to him for his work.
The revised draft airports NPS has been laid in the Library of the House and will also receive Select Committee scrutiny. The recommendations they make will be an important consideration as we move forward. As required by section 9(6) of the Planning Act 2008, I am specifying a “relevant period” for Parliamentary scrutiny. This will start today and end on 23 March 2018.
Alongside this, our work to develop a new aviation strategy will look beyond a potential new runway at Heathrow, and will set out an ambitious long-term vision for the sector, which will support economic growth across the whole UK. In addition to considering how we can make best use of existing capacity at all airports around the country, it will look at any future need for new capacity away from Heathrow, whilst tackling environmental impacts.
The impact of noise from aircraft is a national issue, and alongside the initial consultation on the draft airports NPS, we also consulted on proposals to support modernisation of the way UK airspace is managed. Today I am also publishing the response to that consultation, and confirm we will be establishing a new independent noise body to ensure communities around our airports have a say in airspace changes which may affect them. Along with a new call-in power for the Secretary of State for Transport on airspace changes of national importance, this is designed to rebuild the trust lost in the industry by communities and provide democratic accountability for the most significant decisions.
In addition, the measures I am outlining today will enable us to make much greater use of new technology, giving us the ability to manage our airspace more effectively to tackle delays, cut emissions and reduce the need for stacking above our busiest airports. They will also help support the airspace changes we need in our skies to meet future demand—including a potential third runway at Heathrow.
Today’s announcement marks another important step as we work to ensure the UK has the connectivity we need right now to lead on the world stage.
[HCWS197]
Oral Answers to Questions
Lord Grayling Excerpts(8 years ago)
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Fiona Onasanya (Peterborough) (Lab)
The Secretary of State for Transport (Chris Grayling)
We want our future relationship with the European Union to be mutually beneficial. It is in the interests of both sides to maintain closely integrated aviation markets. However, it is the Government’s responsibility to prepare for all potential outcomes. The Government continue to work closely with the aviation sector to ensure the industry continues to be a major success story for the British economy.
Sir Desmond Swayne
What European destination would want to turn away planeloads of spending British tourists?
Chris Grayling
My right hon. Friend makes a good point. Those with any concerns about 2019 just have to answer the question: how many hotels in Spain would be empty if the Spanish Government choose not to continue our aviation arrangements? That is why we will continue to make good progress towards satisfactory arrangements for the future.
Fiona Onasanya
In light of that answer, can the Secretary of State give an assurance that the Government will pursue an unchanged operating environment for the aviation sector in the Brexit negotiations with the EU?
Chris Grayling
I can give the hon. Lady that assurance. We believe it would benefit all the nations of Europe to continue the freedom of the aviation sector that we have seen over the past decade and more. That freedom particularly benefits regional economies and regional airports across the European Union, in this country and elsewhere. It would be foolish for anyone to try to stop that freedom.
Lilian Greenwood (Nottingham South) (Lab)
The nine freedoms of the air guaranteed under the European common aviation area have enabled the growth of low-cost air travel, with average leisure fares to Europe falling by a third since 1993. We have already seen easyJet hedge against a no-deal scenario, but what assessment has the Secretary of State made of the implications of the UK falling back on the Chicago convention? What would that mean for the future of UK airlines, UK airports and affordable flights for UK consumers?
Chris Grayling
The hon. Lady needs to remember that aviation regulation operates at a global level, at a pan-European level—in which there is an “open skies” agreement—and at a national bilateral level. I have worked carefully with the airlines and all those involved, and I am certain that not only will aviation continue post-2019 but that everyone wants aviation to continue post-2019.
The individual case of easyJet relates to the question of cabotage within the European Union, which is clearly a matter for debate. It will be a negotiation for the whole sector because, although we have successful airlines such as easyJet operating flights within the rest of the European Union, we also have a large number of continental hauliers doing business within the United Kingdom. It is to everyone’s benefit that such liberalisation continues.
Sir Vince Cable (Twickenham) (LD)
European competition law will no longer apply after Brexit, so how does the Secretary of State propose to allocate airport slots? By auction, or in some other way?
Chris Grayling
Of course, the big question is about the expansion of slots at Heathrow airport in particular, which will be a matter for the Government both to negotiate and agree. Right at the top of our priority list in allocating slots—and we have committed to this in what we have said about the proposed expansion of Heathrow airport—is that we reserve slots for regional connectivity. One of the key benefits of Heathrow airport expansion is the global connections it will provide to cities across the whole United Kingdom. Whatever approach we take, we need protection for those regional links.
Karl Turner (Kingston upon Hull East) (Lab)
The Secretary of State may be in denial, but the Chancellor has finally fessed up to the fact that, if there is no Brexit deal, it is conceivable that flights between the UK and the EU might be grounded. Is it not time for the Government to get their finger out and give the reassurances that the aviation sector so badly needs?
Chris Grayling
I am surprised that the hon. Gentleman, an experienced lawyer, did not read everything the Chancellor said. The Chancellor said that that was not going to happen and that, therefore, he will not spend a lot of money preparing for it. The actual reality is that we are doing a lot of preparatory work for all eventualities but, of course, the reason the Chancellor said what he said is that, as he says, that is not going to happen.
Theresa Villiers (Chipping Barnet) (Con)
Philip Davies (Shipley) (Con)
The Secretary of State for Transport (Chris Grayling)
As my hon. Friend will be aware, the Government have allocated significant resources to West Yorkshire for local transport schemes through the local growth fund, including £781 million over 30 years from local growth funding and “gain share”. In addition, I am pleased to be able to inform him this morning that £2.3 million is being allocated to Bradford Council for improved traffic management systems as part of the £244 million NPIF—national productivity investment fund—funding being announced today. Later this year, we will start consultation on the major route network, which may provide the routes to securing the Shipley eastern bypass that he is concerned about.
Philip Davies
I am very grateful to the Secretary of State for that answer and I very much welcome the new bypass fund that he is setting up, appreciating the difficulties that many motorists have in getting around. Does the new fund mean the long wait that local businesses, local residents and I have suffered waiting for a Shipley bypass may soon be at an end?
Chris Grayling
As I indicated, it is very much my hope that a number of schemes around the country will start to be brought forward for development under this fund. I would be rather surprised if the Shipley eastern bypass is not one of those brought forward as a proposal to the Government early on. As he knows, I will be joining him to see the issues around the Shipley eastern bypass and to see the possible routes shortly, and I have no doubt that he and his colleagues in his constituency will be making strong representations when I visit.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
No one begrudges the money for a Shipley bypass—certainly no one in Huddersfield does. What we are angry about in Yorkshire is the fact that this Minister has taken away the money and the promise for a trans-Pennine railway electrification. That is what we will not forgive him for. He must get his act together and invest in the north.
Mr Speaker
He mentioned Shipley but it is not sufficient simply to animadvert on Shipley. The question ought to relate to the matter.[Interruption.] Which is a bypass, as somebody has observed, very originally and wittily from a sedentary position.
Chris Grayling
It is worth putting on the record that I have not announced any changes to that programme. There is money for the trans-Pennine modernisation. I am expecting the detailed proposals from Network Rail later this year. However, it is worth saying that we are spending more money on more projects across the north of England than any Government have for decades and decades, including during the 13 years when Labour was in government. It is also worth saying that we have electrified four times as many miles of railway in the north of England alone than Labour did in 13 years in government. So I am not going to take any lessons from Labour Members about commitments to the modernisation of the transport system—in the north or elsewhere.
Martin Vickers
Many of my constituents would like to visit Shipley on many occasions, but in order to do so that they would have to travel along concrete sections of the A180, which causes great disturbance to residents in Stallingborough and other villages in my constituency. Will the Secretary of State urge Highways England to look favourably on funding improvements to that section of the A180?
Chris Grayling
I know that Highways England listens carefully to the comments made at Transport questions. My hon. Friend highlights something that is an issue in his area and throughout the country. I am clear that we need to do everything we can to ensure that the technology for future road surfaces delivers both durability and quietness.
Chris Grayling
I am always happy to meet the hon. Gentleman. I am not aware of the specific scheme he asked about, but it is precisely for the reasons he outlined that I have set aside money to create the bypass fund for the years ahead. I recognise that in a number of important regional towns too many areas are congested as a result of through traffic. That is particularly true in the Lake district and the major route through Kendal to get to places such as Windermere. I will happily talk to the hon. Gentleman about that.
Mr Peter Bone (Wellingborough) (Con)
Wellingborough is very similar to Shipley—one might even argue that the two MPs are rather alike in their views—but one problem that my constituents find in getting to Shipley is that they cannot get through Isham because a bypass has not been built. Is the Secretary of State able to offer some encouragement about the Isham bypass, which would enable my constituents to get to Shipley more easily?
Chris Grayling
May I first wish my hon. Friend a happy birthday? I am slightly surprised to see him wearing a more muted tie today. Although I cannot give assurances on every individual scheme, it is very much my intention that the bypass fund is there to fill in holes in what was once the strategic network. The network was de-trucked many years ago, leaving congestion problems in many regional towns and on many important regional routes, without an obvious and clear route to secure funding to ease that congestion. In the coming months I will consult colleagues from across the House as to how best we manage the process of getting that fund and those projects going.
Diana Johnson (Kingston upon Hull North) (Lab)
As a Yorkshire MP, it is always good to see promises of investment in places such as Shipley. Nevertheless, this summer the Secretary of State said to The Yorkshire Post:
“The success of Northern transport depends on the North”.
Will he explain how, with London getting 10 times as much money for transport investment as Yorkshire and the Humber gets, that is going to happen?
Chris Grayling
I am afraid some of the figures bandied around by think-tanks in the north are simply inaccurate. We are putting more investment into transport in the north of England than there has been for decades and decades—into the road system and the rail system. We are replacing every single train in the north with either a brand new train or one that has been refurbished as new. It is a long-overdue programme. It did not happen in 13 years under a Labour Government, when there was money aplenty. Even in tighter financial times, we see it as a priority to develop transport in the north, and that is what we are doing.
Deidre Brock (Edinburgh North and Leith) (SNP)
The Secretary of State for Transport (Chris Grayling)
I meet my right hon. Friends the Secretaries of State for Exiting the European Union and for International Trade regularly—indeed, I did so yesterday—to discuss the UK’s exit from the EU. Seeking new aviation arrangements—both with the EU and with those states where we currently rely on EU-negotiated arrangements for market access—is a high priority for my Department. We aim to have the new arrangements in place well before the day of exit.
Deidre Brock
The Secretary of State obviously agrees with the absolute need for aviation agreements, through either bilateral means or an EU-wide arrangement. Will he tell us how many DFT staff have expertise in negotiating aviation deals and how many are working on deals as we speak?
Chris Grayling
I have a big team that is experienced in dealing with such things, because, across the world, we have bilateral arrangements with countries in all continents. I have experienced teams that are working on that right now. We are pursuing the necessary successor arrangements that we will need for flights to countries around the world, and there is nothing but good will and constructive discussion between us and those countries in ensuring that there is no interruption in flying.
Jim Shannon (Strangford) (DUP)
Not only is the aviation timetable agreement important, but so is the securing of routes. Will the Minister tell us what has been done to secure routes for Belfast City and Belfast International airports to make sure that Dublin does not receive, to our detriment, the routes that we should be getting instead?
Chris Grayling
Of course, the choice of routes is ultimately down to the airlines themselves, but the hon. Gentleman will know that we provide significant support for important links from Northern Ireland, and we will continue to do so. The biggest difference for Northern Ireland will come with the expansion of Heathrow airport towards which we are working at the moment, and a guarantee of slots to provide excellent connectivity for Northern Ireland, Scotland, England and Wales into countries around the world.
Alan Brown (Kilmarnock and Loudoun) (SNP)
The Scottish Government have not been able to cut air passenger duty because the UK Government have not properly implemented an exemption for Inverness airport. Given the importance of low-cost carriers to Scotland’s regional airports, it is important that the Scottish Government are also involved in any discussions. However, to allow sufficient time for EU ratification, the aviation agreements need to be concluded by October 2018. How many staff does the Secretary of State have working on these matters, and what guarantees can he provide that travel will continue uninterrupted?
Chris Grayling
The hon. Gentleman makes his comment about air passenger duty in Scotland, but we did what the Scottish Government asked: we devolved air passenger duty and they have not cut it. I am afraid that they are discovering the realities of government. It is all very well making demands from the Opposition Benches, but when they actually have to take tough decisions, they discover that it is not all that easy. We are seeing that they are failing to deliver for the people of Scotland. When it comes to planning for aviation after Brexit, things are different, because we are planning for that and we will deliver. We will see, post 2019, that aviation continues to be the success story that it is today.
Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)
Matt Warman (Boston and Skegness) (Con)
The Secretary of State for Transport (Chris Grayling)
Before I respond to any topical questions, may I take this opportunity to express my thanks, and I hope those of the whole House, to all those involved in the repatriation of passengers affected by the collapse of Monarch Airlines? It was a huge effort across government, but particularly by the Civil Aviation Authority, and we all have good reason to be thankful to the team involved.
Matt Warman
Boston is a growing port and a growing town. New housing developments have preserved a route for a Boston distributor road, with which I know my right hon. Friend is familiar, but what will he do to help us to deliver the expensive but vital bridge in the middle of the distributor road, which we cannot of course ask housing developers to fund entirely?
Chris Grayling
Indeed, as my hon. Friend knows from my past visits to Boston, I am well aware of the importance of the Boston bypass project. The town is situated on an A road with a congestion problem and is one of those for which I would expect to see proposals come forward for the bypass fund. We will look very carefully at the bridge issue, and I am very happy to talk to him about that.
Alan Brown (Kilmarnock and Loudoun) (SNP)
You may not be aware of this, Mr Speaker, but just last week there was another great train robbery: £600 million was removed from Scotland’s rail budget because the Tories ripped up a long-standing funding formula. For the sake of Scottish rail users, will the Secretary of State get together with the Treasury and give Scotland the correct funding?
Chris Grayling
This is an historic moment: the Scottish National party is opposing a funding allocation that uses the Barnett formula. I was under the impression that it regarded the Barnett formula as sacrosanct. However, when the UK Government use the Barnett formula, it complains. The SNP cannot have its cake and eat it.
Mr Peter Bone (Wellingborough) (Con)
Holly Lynch (Halifax) (Lab)
Chris Grayling
There is a two-stage programme of modernisation for rail in the north, despite the nonsense that the shadow Secretary of State was talking earlier. Initially, we are replacing every single train in the north. We have modernised the Calder Valley line and are about to launch the modernisation of the main trans-Pennine route between Leeds and Manchester.
Of course we have done other things, such as electrifying the railway line from Liverpool to Manchester and creating the first ever link between Manchester Victoria and Manchester Piccadilly. A whole range of things is happening. What we said at our conference and will be confirmed at the Budget is that we will set aside funding to create the links between HS2 and Northern Powerhouse Rail. I am now waiting for the detailed Transport for the North proposals for Northern Powerhouse Rail. In the short term, we modernise the trans-Pennine route, and in due course we will build Northern Powerhouse Rail to ensure that we have those better links for the future.
Rebecca Pow (Taunton Deane) (Con)
Stephen Hammond (Wimbledon) (Con)
Chris Grayling
I expect to set out our further plans on the rail industry very shortly.
Justin Madders (Ellesmere Port and Neston) (Lab)
Further to the question from my hon. Friend the Member for Warrington South (Faisal Rashid), who was right to point out the impact of the new charges on the Mersey Gateway will have on his constituents, as well as the charges that are being introduced on the existing Silver Jubilee bridge, will the Minister tell us how many existing crossings, which were previously free, have had charges introduced on them in the past 10 years?
Mr Laurence Robertson (Tewkesbury) (Con)
Chris Grayling
We welcome open-access applications. They have made a real difference to many towns and cities around the country. It is clear that open access should happen where there is capacity for it to take place, so that it fills in gaps and puts in competition. The Office of Rail and Road is very careful in judging when it can permit open access and when it cannot. It looks very carefully at every proposal, and we welcome them.
Luke Pollard (Plymouth, Sutton and Devonport) (Lab/Co-op)
Further to the question from the hon. Member for Na h-Eileanan an Iar (Angus Brendan MacNeil) about the potential late tasking of lifeboats, will the Minister meet me, parliamentary colleagues and the coastguard to ensure that the launch protocols the coastguard uses are not adding undue delay in the tasking of lifeboats in emergencies?
Ruth Cadbury (Brentford and Isleworth) (Lab)
Domestic air travel is surely an integral part of the UK’s transport infrastructure. In their planning for Heathrow expansion, how much have the Government budgeted to increase the number of domestic routes to London from Scotland, Northern Ireland, the north and the south-west?
Chris Grayling
I hope that this is not a question of our budgeting, because I hope that the links will provide strong commercial opportunities. Governments seldom fund airline routes except in specific cases, such as our recent decisions over the air link from Northern Ireland to Stansted. I hope, however, that the opportunities created by the expansion of Heathrow airport for the regions around the country will mean a thriving trade and attract airlines to take those slots.
Kevin Foster (Torbay) (Con)
I know that the Rail Minister will share my excitement at the prospect of the first new station in the bay since world war two at Edginswell. Will he agree to meet me and the local council to see how we can take this forward and what the prospects might be for new stations funding?
Chris Bryant (Rhondda) (Lab)
The service on the Treherbert line is shockingly bad. Trains are regularly cancelled. When there should be four carriages, there are often two. Obviously, there is to be a new franchise, let by the Welsh Government, but we need more investment in the rail network, and that is down to the Westminster Government. We have 6% of the railways in this country in Wales. Why do we only get 1% of the investment?
Chris Grayling
In Wales right now, we have the biggest electrification programme in the country coming soon; we have new trains coming to Cardiff, Swansea and Pembroke Dock; we have a big investment programme funded by central Government in the valley lines; and I am now looking at what changes we can make to the north Wales line, where there is a real need for improvement.
Roads
Lord Grayling Excerpts(8 years ago)
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The Secretary of State for Transport (Chris Grayling)
I am today setting out further details of significant investment for our roads, including announcing the next two major local road schemes and 76 winners from the recent competition for national productivity investment funding on local roads. This funding from the Department for Transport totals £345.3 million.
This funding includes two new large local major road schemes receiving programme entry approval, at Carrington bridge in Worcester and at Middlewich in east Cheshire. The scheme in Worcester will alleviate congestion on the A4440 southern relief road and receive £54.5 million of funding towards a total cost of £62 million. The Middlewich eastern bypass will alleviate congestion in the town centre and facilitate the expansion of the Magnitude employment site. It will receive £46.8 million of funding towards a total cost of £56.9 million.
I am today announcing the winning 76 local projects which will receive funding of £244 million from the national productivity investment fund, during 2018-19 and 2019-20. The schemes will help to ease congestion, provide upgrades on important local routes, as well as facilitating the unlocking of economic and job creation opportunities. They will also support, in some areas, the potential delivery of new housing developments. Further information on today’s announcement is available on the Department for Transport’s website. These projects are an essential part of ensuring we have a country which works for everyone.
The Government announced the road investment strategy (RIS) in December 2014, an ambitious plan to increase much needed road capacity, boost economic development and improve road safety. It seeks to address many years of under-investment in England’s motorways and major trunk roads. Highways England has made good progress on delivery to date, completing 18 road schemes and starting work on 15 more.
Highways England has also undertaken longer-term planning work to ensure that the high level of road investment along key corridors of the network can be delivered in a way to minimise disruption and keep road users moving. These plans also help to mitigate delivery risks and achieve better value for money for the taxpayer. This planning work was referred to in recent ORR and NAO reports on the road investment strategy. I confirm that Government have agreed with Highways England’s plans to optimise delivery of the RIS. This re-profiling and optimisation of delivery is consistent with Highways England’s remit and does not involve any cancellation of schemes, so the regions of England can expect continued and similar levels of road investment.
Further details can be found on Highways England’s website and press releases.
[HCWS180]
Rail Infrastructure Funding 2019 - 2024
Lord Grayling Excerpts(8 years ago)
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The Secretary of State for Transport (Chris Grayling)
I am today publishing my final statement of funds available for the railway in England and Wales for control period 6, which covers the years 2019 to 2024. This follows my publication of a high level output specification and initial statement of funds available on 20 July.
The high level output specification made clear that the Government are determined that the railway becomes more focused on issues that matter most to passengers—such as punctuality and reliability. It therefore focused on the operation, maintenance and renewal of the railway—areas which are crucial to delivering a more reliable railway. At the time of its publication, the Government deferred publication of a final statement of funds available, following more work to establish Network Rail’s costs and the scope for efficiency savings across control period 6.
This work has now concluded. On the basis of further work by Network Rail, of continued scrutiny by the Office of Rail and Road (ORR)—including through its independent reporter, Nichols—and through work by my Department and HM Treasury to challenge costings, Government are now in a position to set out their funding envelope for control period 6.
At this stage we expect around £47.9 billion to be spent on the railway across control period 6. Of this, we expect up to £34.7 billion to be provided directly via Government grant, with the remainder coming from a combination of track access charges and income from other sources, such as Network Rail’s property portfolio. These amounts will be refined during the regulatory process, which will produce by summer 2018 detailed draft amounts for the 2019 to 2024 period for consultation. Budgets will be set at route level, as part of the devolution of more accountability and authority to Network Rail routes, driving change in the organisation. The regulatory process will conclude with a final determination in October 2018.
During this process I expect the regulator to provide a strong efficiency challenge to maximise value for money, and the ORR has substantially changed its regulatory approach to help achieve this.
We have some of the most intensively used railways in Europe, and this investment focuses on the essential work needed to ensure their safety and reliability, including funding to support a significant increase in renewals activity compared to the current period, and increased maintenance spend to allow Network Rail to meet the challenges of a busier network. This investment recognises the critical importance of these activities in preserving the day to day operation of the railway.
I believe that a renewed focus on core railway activities will help return train performance to the levels that passengers expect and deserve. Overall, this significant funding demonstrates Government’s continued commitment to investing in the railway for the benefit of passengers, communities, the supply chain and the wider economy.
The Government have already made clear that they expect new enhancements to the rail network to be developed outside of the regulatory system. However, the statement of funds available published today includes funding to continue to take forward the enhancements that were deferred from control period 5. In line with the new process for enhancements these schemes will continue to be subject to ongoing consideration to ensure they deliver the best results for both rail users and taxpayers. In addition to this, I am making funding available for the early-stage development of new enhancement schemes. I will announce further details on a new process for taking forward enhancements later in the year. We need to ensure investment best addresses the needs of passengers and freight, and that funding commitments appropriately reflect the stage of development of those enhancements.
Furthermore, the statement of funds available also includes funding for continued investment in improvements to both the accessibility of the railway and the rail freight network. Our commitment to funding accessibility improvements in the railway further emphasises our drive to ensure that the railway is accessible to all. The Government have recognised the crucial role that rail freight plays in supporting the economy and the environment and our continued investment in the freight network recognises this.
Given the need to spend public money wisely and to incentivise the industry to do so, I believe the funding envelope published today is stretching yet achievable. I will continue to push Network Rail to improve its effectiveness and efficiency. In particular I support an ambitious approach to route devolution, so that Network Rail is more focused on its customers. I will also modernise the Government’s oversight and assurance arrangements for Network Rail to properly reflect its public sector status. I have taken steps to ensure that this money is spent more effectively and that the problems with cost and delivery which occurred during control period 5 are not repeated. I will also continue to drive improvement across the wider industry, including the franchising system. I will update this House further on my plans for wider rail strategy in the near future. I am arranging for copies of the statement of funds available to be placed in the Libraries of the House.
The statement of funds available can be viewed online at:
http://www.parliament.uk/business/publications/written-questions-answers-statements/written-statement/Commons/2017-10-12/HCWS160/ .
[HCWS160]
Monarch Airlines
Lord Grayling Excerpts(8 years ago)
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The Secretary of State for Transport (Chris Grayling)
With your permission, Mr Speaker, I would like to make a statement about the steps the Government have been taking to support those affected by the collapse of Monarch Airlines, in particular the 110,000 passengers left abroad without a flight back to the UK and the almost 2,000 people who have lost their jobs.
This situation is highly regrettable and all parties considered options to avoid the collapse of the company. Ultimately, however, Monarch’s board took the decision to place it into administration and it ceased trading at around 4 am on Monday 2 October. The engineering arm of the group remains a viable business and continues to trade. Ahead of the collapse, my Department had been working closely with the Civil Aviation Authority and several Departments across Whitehall to prepare contingency plans, and the response since last week has been swift and substantial.
To put the situation into context, this operation is the largest of its kind ever undertaken. The CAA has essentially set up one of the UK’s largest airlines to conduct it. Let me give Members a sense of the scale. We have put arrangements in place to bring back 110,000 people to the UK, with 700 flights over a two-week period. We have had a maximum of 35 aircraft in operation at any one time. The CAA is working to secure planes from 27 different airlines. More than 200 CAA staff are working on the project with thousands more in partner organisations taking part. There are 40 airports involved in the UK, around the Mediterranean and beyond. That has required 267 coaches carrying more than 13,000 passengers, and so far there have been more than 39,000 calls to our customer service centres, all swiftly answered by more than 250 call centre staff. There have been more than 1 million unique visitors to a dedicated website— monarch.caa.co.uk—and 7 million page views. Furthermore, more than 1 million people have been reached through our Facebook promotion. Ten Government Departments and agencies have been involved, including the Foreign and Commonwealth Office in London and our extensive diplomatic and consular network in the affected countries.
I have seen at first hand the work being done across Government and the CAA to make this operation a success. I have spoken to some of the passengers who have returned to the UK on Government flights. I have been hugely impressed by what I have seen, and we have had a very strong, supportive response from the passengers affected, many of whom deservedly praised the CAA and all the Departments involved in this enormous operation.
Normally, the CAA’s responsibility for bringing passengers back would extend only to customers whose trips are covered by the air travel organisers’ licence scheme, but this is the largest airline failure in UK history and there would have been insufficient capacity in the commercial aviation market to enable passengers to get home on other airlines. The danger was that tens of thousands of passengers abroad would have no easy means of returning to the UK. That is why I instructed the CAA to ensure that all those abroad were offered an alternative flight home. As of last night, around 80,000 passengers had returned to the UK; that is almost three quarters of the total number who were abroad at the time of the collapse. We have had teams of Government officials at overseas airports providing advice and assistance to passengers.
Despite those robust plans and the smoothness of the operation so far, the situation is hugely distressing for all concerned. Obviously, it has been a priority to get people back to the UK, and our hearts go out to those who have lost bookings as a result of the collapse, but in addition to supporting passengers we have been focused on working to ensure that the almost 2,000 former Monarch employees receive the support they need. I am pleased to report that airlines have already directly appealed to those former employees. For example, Virgin Atlantic is offering a fast-track recruitment process for cabin crew and pilots, and easyJet has invited applications for 500 cabin crew vacancies. I and members of my team spoke to the airlines when it became clear what was happening to try to secure their help in getting those opportunities for staff, and I am pleased to see that coming to fruition. easyJet is also calling for direct-entry captains or first officers who meet captain qualifications.
All former Monarch employees will have received information from Jobcentre Plus outlining the support available to them. In total, Jobcentre Plus has pulled together a list of more than 6,300 vacancies across the major UK-based airlines—that is more than three times the number of people being made redundant—which I hope will help those former employees to remain in the airline business. The Minister with responsibility for aviation has been in contact with Members whose constituencies have been hardest hit by these job losses. They have our assurance that we will work with them and the industry to offer what support we can.
I am also aware of the Government’s duty to the taxpayer. Although affected passengers have been told they will not have to pay to be flown back to the UK, we have entered into discussions with several third parties with the aim of recovering the costs of the operation. The ATOL scheme of course provides financial cover for those with ATOL protection. We are currently engaged in constructive discussions with the relevant credit and debit card providers so that we can recoup from them some of the cost to taxpayers of the repatriation flights. We are having similar discussions with other travel providers through which passengers may have booked a Monarch holiday, and I thank all those with whom we have held discussions for their constructive and realistic approach.
The initial response to this unprecedented situation would not have been so successful without the support and co-operation of many players. I am sure we would all say that the loss of a major British brand that was close to celebrating its half-century is a really sad moment. However, it should not be seen as a reflection on the general health of the UK aviation sector, which continues to thrive. We have never had the collapse of an airline or holiday company on this scale before, and we have responded swiftly and decisively.
Of course, right now our efforts are rightly focused on getting employees into new jobs and getting passengers home. After that, our effort will turn to working through any reforms necessary to ensure that passengers do not find themselves in this position again. We need to look at all the options—not just ATOL, but whether it is possible to enable airlines to wind down in an orderly manner and look after their customers themselves, without the need for the Government to step in. We will be putting a lot of effort into that in the months ahead. Our prime task has been to get people home, and I am immensely grateful to all who have taken part in what has proved, so far, to be a smooth and successful operation.
Andy McDonald (Middlesbrough) (Lab)
I thank the Secretary of State for advance sight of his statement.
Britain’s fifth largest airline, Monarch, collapsed because of a litany of failures by the Government, the regulator and the company’s financial backers and advisers. Its demise must also be seen in the context of a ferociously competitive aviation sector, which is adjusting to major overcapacity problems and the loss of services because of terrorism. A further backdrop to the industry is the foggy skies of Brexit, and the total lack of certainty from this Government for the British aviation industry after March 2019.
The airline’s bankruptcy has left huge losses on the shoulders of the public, rather than of the parent company or the regulator. It is the staff, customers, the taxpayer and pensioners who will pay the price. Creditor bills include the £60 million paid by the Government to repatriate holidaymakers, not forgetting the £26 million paid last year when Monarch previously came close to collapse; the £7.5 million to the Pension Protection Fund; the 45 days’ pay owed to the 2,000 staff who were made redundant; and the ticket refunds for the 750,000 outstanding bookings at the time of the collapse.
Why did the Government not do more to support Monarch and ensure that the company was viable, if only for the short term? The German Government recently stepped in to assist Air Berlin and the Italian Government have supported Alitalia. At the very least, an orderly wind-down of the airline would have been preferable to sudden administration.
Monarch is reported to have had £50 million in the bank. Why was the airline not granted a short-term ATOL licence extension, which would have allowed it to continue trading and at least bring its passengers back? Who decided not to grant Monarch an ATOL licence extension? More time would have allowed Monarch to be sold in parts. For example, Monarch’s landing slots are reported to be worth £60 million. Such assets could have been realised in an orderly wind-down. Instead, moneys from the sale of these assets will go to the secured creditor and former owner Greybull Capital, while the public purse gets nothing.
The statutory role of the CAA is to provide choice and value for money for passengers. British consumers now have one less airline to choose from. On its watch, there has been a surge in the cost of UK air fares following Ryanair’s cancellation of flights last month. Monarch’s demise will only push up flight costs further. There is an estimated £200 million in the CAA-administered ATOL compensation fund, yet it only covers about one in 20 of Monarch’s customers. Why is the public purse paying while the outdated ATOL pot sits largely untouched? Monarch Airlines continued to sell flights until Sunday 1 October, even though the airline knew it was going into administration the following day. Why did the CAA not act to stop that?
Greybull Capital’s takeover of Monarch in 2014 was the beginning of the end for the airline. Greybull is a private investment firm that has already presided over the collapse of My Local convenience stores and Comet, among others. Serious questions must now be asked about the conduct of firms such as Greybull, the way they invest and their wider stewardship.
A report in yesterday’s edition of The Sunday Times suggested that the £165 million rescue package for Monarch last year was largely funded by Boeing, as part of a cut-price deal for an order of 737 aircraft. What is the Secretary of State’s assessment of the role of Boeing in the financial engineering of Monarch? The Prime Minister recently criticised the conduct of Boeing against Bombardier in Belfast, in support of her Democratic Unionist party allies. Why is there no criticism of Boeing’s role in the loss of 2,000 jobs in Luton?
The role of KPMG must also be called into question. The firm was appointed to seek buyers for Monarch’s short-haul business prior to its collapse. It was actively doing so. Why is the same firm now acting as Monarch’s administrator? Does the Secretary of State agree with me that that is a glaring conflict of interest?
Finally, the way in which Monarch met its demise should set alarm bells ringing, so will the Secretary of State confirm that there will be a full investigation into the concerns that have been raised?
Chris Grayling
I am sorry the hon. Gentleman did not have a good word to say for all the efforts put in place to bring people back. I would just remind him that, interestingly, in 2008—the last time we had an aviation failure in this country, Excel Airways—the Labour Government followed a very similar path to the one we have followed, with taxpayer-funded repatriation. They did the right thing then, and we are doing the right thing now. I am simply sorry that Labour Members have forgotten that they did the right thing in government, and cannot now say that our doing the right thing this time is indeed the right thing to do. [Interruption.] They did the right thing then, and we are doing the right thing now, and I am just sorry that he could not say a good word about those involved.
The hon. Gentleman talked about the reasons for the collapse. First, this is not an issue about Brexit. The airline had been struggling for three years, and the first concerns were raised about it long before the referendum was even held.
I had hoped that this summer, after the rescue package last year, the airline would see its way through. As its chief executive said, it has been a victim of the anxieties about tourism in the east Mediterranean for security reasons. Those have led to a concentration of business in the west Mediterranean and the traditional resorts of Spain and Portugal and a price war from which the company was ill equipped to recover. That is what has happened, no more no less.
The hon. Gentleman asked about the licence, and there was no issue about its renewal. What happened was never about the renewal of the licence—the business had simply reached the end of the road. Its board came to the conclusion that it could not carry on.
The hon. Gentleman asked why the company carried on selling tickets the day before. The reality is that any airline that runs into difficulties will carry on selling tickets until it can no longer do so. The moment it stops doing so, it collapses, and that is what happened. It would happen any time an airline ran into such difficulties. There is no other way to do it. The moment it stops selling tickets, it stops doing business, and that is precisely what happened.
The hon. Gentleman talked about competition, and other airlines are already stepping into the breach. Jet2, one of our fast-growing, emerging airlines, has already said that it will step in and run some of the routes. That is what a market does. If one business fails, others step in. The tragedy of the Labour party in the last few years is that it has moved away from understanding markets to being utterly hostile to markets and the private sector.
We have a thriving aviation sector with competition between airlines delivering a good deal for consumers, and occasionally—once under a Labour Government and once under ours—something has gone wrong. In both of those situations, the Government of the day stepped in to try to make sure that we looked after the travelling public. I have no doubt that if it ever happens again, someone will do the same.
We do have to learn the lessons. We have to understand whether we can make sensible changes to the laws to ensure that this does not happen again. We are already legislating to extend the ATOL scheme to provide better protection for people who book over the internet in a different way from how they have in the past. I am clear that the job of the Government is to look after the travelling public and step in when things go wrong. We have done that, and we are seeking to get back as much money as possible, as Labour did in 2008. Above all, our job is to do our best for the travelling public and the employees. That is what we are doing. I am proud of what we are doing, and I am just disappointed that the Opposition cannot even say well done to the people who have worked so hard in support.
Crispin Blunt (Reigate) (Con)
The chief executive of Monarch has attributed the principal reason for the demise of the airline to terrorism and the resulting flight bans to both Tunisia and Sharm El Sheikh. Can the Secretary of State give his assessment of the merits of that argument?
Chris Grayling
There is no doubt that that was a significant factor, and not only because of changes in consumer patterns. Many other airlines chose to concentrate their resources this summer in the traditional resorts of Spain and Portugal. Alicante airport and others were full of planes this summer, and Monarch got squeezed out in a price war for which it was not financially strong enough. Ironically, it carried more passengers than two years ago, but with far lower revenues, and that more than anything else is what has caused its demise. It is a consequence of the security situation and of people taking a cautious approach to their holidays.
Patricia Gibson (North Ayrshire and Arran) (SNP)
The sad fate of Monarch Airlines is a stark example of the realities of Brexit beginning to bite. There is no denying that the fall in the pound has led to significant increases in the operating costs for the airline over the past year. The weak pound has also affected consumers and led to a drop in bookings. Add to that the uncertainties over the future of British carriers in Europe that served as a significant deterrent for any potential buyer who might otherwise have been found, and Monarch’s fate was sealed. Does the Secretary of State agree that as long as uncertainties over Brexit continue there is a danger of similar high-profile collapses?
Can the Secretary of State say with certainty today that the rights of UK passengers will not be eroded or diluted after Brexit? Will he confirm that the Government will work with administrators and the unions to ensure that employee rights are fully respected during the process, and that—where applicable—compensation is made available in a timely manner, in view of the fact that the manner of the administration raises real concerns about employee rights?
Chris Grayling
I am really sorry the hon. Lady has taken that approach. Let me be absolutely clear: this airline did not fail because of Brexit; this airline failed because it had a business model that was not capable of dealing with a price war in the Mediterranean. That is the reality of the situation and that is what its chief executive said. The hon. Lady talks about Brexit causing a lack of investment, but in the past few weeks we have seen a big expansion. Jet2 has set up a new base at Stansted and there has been a huge investment in the UK by Norwegian, which is becoming a real player in the low-cost marketplace. The market is changing and sadly Monarch, a business that has been around for 50 years, was not able to adapt to those changes. I am afraid she is just doing a disservice to the economy of the United Kingdom when she claims that this was a consequence of Brexit. She talks about employees. The biggest favour we can do for the employees of Monarch is to work to ensure they get another job quickly, and that is what we are seeking to do.
Ms Esther McVey (Tatton) (Con)
Following on from the many letters I have received from constituents, will the Secretary of State join me in thanking and congratulating the staff of the CAA, the Department for Transport and my local airport, Manchester airport, on the work they have done on the biggest evacuation in peacetime?
Chris Grayling
I am very happy to do that. I pay tribute to the staff of Manchester airport—I met the first plane back at Manchester airport—who rowed in behind the challenge. They were notified only late on the previous day, but by Monday morning staff were out greeting passengers, telling them what had happened and sorting out all the issues arising from the administration. I owe a big debt of gratitude to the staff of Manchester airport, Gatwick airport, Birmingham airport, Luton airport and Leeds Bradford airport, all of whom rose to the occasion, and to all the other people and organisations involved in the exercise.
Lilian Greenwood (Nottingham South) (Lab)
In 2014, the CAA recognised the fragility of Monarch’s finances and insisted on ATOL protection of flight-only bookings, but that requirement was dropped in December 2016. Monarch’s administrators cite cost pressures and increasingly competitive market conditions as contributors to its collapse. Given that the fall in the value of the pound and the loss of tourism in Egypt and Tunisia predate that decision, passengers will rightly ask why the requirement for ATOL protection was removed. Will the Secretary of State explain the process for deciding to drop ATOL protection of flights, the Department’s part in that decision, and how much the decision will ultimately cost UK taxpayers?
Chris Grayling
The ATOL scheme counts as public expenditure whatever happens. The impact on public finances, whether or not this was covered entirely by the ATOL scheme, remains the same because of how Government accounting works. I take advice from the CAA on the steps we need to take. Last year, Monarch had a big injection of cash, and in the first part of this year it looked like things were back on the straight and narrow. What changed this summer was the price war, which undermined the company’s revenues and led to a position where its losses were mounting week by week. That was the real issue. I have no doubt that the hon. Lady and her Committee will want to deal with these matters in greater detail, and I look forward to talking to her. She has every right to scrutinise what we have done. We sought to do our best for the travelling public and to take the decisions we were advised to take at the right time.
Anna Soubry (Broxtowe) (Con)
As a former Business Minister before the EU referendum, and apparently as one of the chief “remoaners”, may I make it absolutely clear that the unfortunate demise of Monarch has absolutely nothing to do with Brexit? Those who seek to make it an issue based on Brexit do not do anybody any favours. I commend the Secretary of State not only for his statement but for his hard work and that of his Ministers in doing their utmost to bring everybody back to this country. Will he confirm that Transport Ministers and Business Ministers have been doing their absolute best for Monarch for years? Will he continue to work with Foreign and Commonwealth Office Ministers to look at how we can open up airports, such as Sharm El Sheik and those in Tunisia, to support the rest of our aviation industry?
Chris Grayling
I am very grateful to my right hon. Friend for her words. She is absolutely right. This is a sad tale of an airline that has been struggling for years. A lot of effort has been put in by many people to try to keep it afloat. It is a real disappointment that they were not able to succeed. She is absolutely right about the Brexit issue. If we want another example, it is only a few weeks since Air France and KLM spent hundreds of millions of pounds on a stake in Virgin Atlantic. Those are not the actions of commercial organisations that believe that Brexit is destroying the British aviation sector. Those who suggest it are simply talking down our country and that is not acceptable. I am therefore very grateful to her for what she says. She is absolutely right. I give her an assurance that the Government will do everything we can to support the sector, to support the people who lost out as a result of Monarch’s collapse, and to continue to ensure we have a strong sector for the future.
Kelvin Hopkins (Luton North) (Lab)
As the MP for Luton North, I represent many of those who have lost their jobs, and I have to say that, had the company been in public ownership—with proper transparency and accountability to Parliament—I suspect that this would not have happened. [Interruption.]
Kelvin Hopkins
My concern is that, when the company collapsed, the assets had almost all disappeared, so there was very little financial value in the assets of the company. Was this to benefit shareholders and owners, and how much money has the state effectively paid out that the owners and shareholders should have been accountable for?
Chris Grayling
The hon. Gentleman is right that the airline did not have the assets at the end—airlines today do not own their planes but lease them. One reason it is difficult to continue to operate an airline like this is that the planes are the property of the lease companies, which take them back immediately afterwards. We clearly have to look at whether there is a better way of doing things, but it is not easy.
It would be relatively easy for an airline abroad that is owed money simply to impound an airliner and make it impossible for us to get people back, so these are not straightforward issues. But is the hon. Gentleman really suggesting that we go back to a time when the state owned everything? Do we want the state to own British Airways, easyJet, Jet2 and Thomas Cook? It is nonsense. Even the most socialist Labour Government of the past would never have suggested that the state own every holiday airline. It is a sign of how extreme its policies have become that anybody on its Benches can seriously suggest it.
Nigel Huddleston (Mid Worcestershire) (Con)
I congratulate the Government on the speedy response to the Monarch situation and on highlighting the resilience of the UK aviation industry—in the private sector—but the Secretary of State will be aware that there has been confusion over who is ATOL protected. Does he agree that more could be done to communicate the benefits of ATOL membership?
Chris Grayling
This is definitely one area we need to look at again. We are already legislating to ensure that people who pay for a flight and hotel separately through an internet organisation can be covered through ATOL insurance. This is an area where we have to do more work. There is, however, a fundamental issue: if we were to put a levy on the cost of an air ticket, we would have to do it on every air ticket in the UK, but many of us on the Conservative Benches get regular representations from regional airports, for example, saying they want air passenger duty cut. This would increase APD, and that is why it is not a straightforward decision, but one we must consider very carefully.
Graham Stringer (Blackley and Broughton) (Lab)
I agree with the Secretary of State that in future situations like this one the Government should look for an orderly wind down, but is that not pie in the sky given the evidence of a conspiracy between Greybull and Boeing to protect their own capital interests against the pension rights of former employees and the people who bought tickets when it was already clear that the airline was bankrupt?
Chris Grayling
The hon. Gentleman should remember that the pension scheme was transferred to the Pension Protection Fund in 2014, when it was sold by the Swiss family that had owned the business since the 1960s, so it is not straightforward to talk about pension rights now. He should not second guess any details of how, why or where the financing package was secured a year ago. It is a matter of record that it involved rescheduling or reorganising the leasing of the aircraft, but had it been able to secure the future of the airline, as we all hoped at the time, we would all be grateful it had happened. It is tragic that that was not the case.
Mary Robinson (Cheadle) (Con)
Almost 500 Monarch staff are based at Manchester airport, and many are my constituents, so I am grateful to hear the assurances that the Government will work with the industry to support staff back into work. Will the Secretary of State outline what more support will be given to our regional jobcentres to assist my constituents who have lost their Monarch jobs?
Chris Grayling
Before it became clear that the collapse was happening, we had pre-meetings across Whitehall between the Departments that needed to be involved, including the Department for Work and Pensions, and Jobcentre Plus has been working with all those affected. That work will continue where necessary. I am glad that if such terribly difficult circumstances had to arise, they arose in a thriving sector with lots of job opportunities. The fact that Jobcentre Plus was able quickly to identify more than 6,000 vacancies for 1,700 people looking for jobs is a good step in the right direction and a tribute to the success of that sector, off the back of what has been a successful economy in recent years.
Ian Austin (Dudley North) (Lab)
Four hundred employees, including skilled engineering workers, are set to lose their jobs at Birmingham airport,. The region can ill afford to lose those skills and the contribution that they make to the regional economy. Will the Secretary of State ensure that his Department redoubles its efforts, and does everything possible to ensure that those people can find equally skilled work elsewhere in the region as soon as possible?
Chris Grayling
I absolutely give the hon. Gentleman that assurance. Securing strong futures for those people has been, is and will remain a priority for us, along with getting the passengers back. As I have said, however, I am encouraged by the number of other airlines that are actively seeking to recruit. As slots become vacant at Birmingham, Luton, Gatwick, Leeds and Manchester, other airlines are already seeking to move in and take those slots, and they will need staff to work on the business as they arrive.
Bim Afolami (Hitchin and Harpenden) (Con)
Will the Secretary of State give further details of what the Government are doing to assist former employees of Monarch Airlines who have lost their jobs as a result of the airline’s collapse?
Chris Grayling
We have had a very early promise on a lot of things. A few hours before the administration came into effect, I spoke to the chief executive of easyJet, who was very helpful. I should express thanks to easyJet for helping us with some problematic routes; for instance, only specialised pilots can fly into or out of Funchal airport.
The chief executive gave me an assurance, and easyJet has given us assurances subsequently, that the airline will hire a substantial proportion of those staff. It is likely to hire 500 very quickly to meet its future demands, because its business is growing rapidly, and I know that other airlines plan to step in and do the same. Jobcentre Plus has already been holding job fairs and airlines have already been going through recruitment exercises, so it is my hope that all those affected will find jobs quickly.
Laura Smith (Crewe and Nantwich) (Lab)
The Secretary of State emphasised that Monarch passengers abroad would be covered until 15 October, but constituents of mine who are due to return on 16 October are worried because there is no information available online. Will the Secretary of State please let me know where they can obtain information, and whether their return is protected or not?
Chris Grayling
The full repatriation exercise lasts for two weeks, and at the end of that time there will be a very small number of people left abroad. We know that, at that point, the sector as a whole will be able to absorb those passengers; it could not have done so a week ago, given the numbers involved. The Civil Aviation Authority will be contacting those people this week and keep its helpline available for a considerable time after the repatriation effort has been completed, and we will work to ensure that they can return home straightforwardly. They will be entitled to refunds through credit cards, through the ATOL scheme, and so forth. The crucial difference is that when the company went into administration the sector could not have coped with the number of people involved, but by next week absorbing the small number of passengers who remain will not be a problem.
Mims Davies (Eastleigh) (Con)
Jobs and opportunities that come from access to regional airports and flights mean a lot to Members in all parts of the House, and, indeed, to my constituents who can access Southampton airport. Will the Secretary of State thank Barclays for supporting my constituents and their families? Members of the Hamble Aquatics Swim Team who were due to go to Lanzarote were reimbursed more than £9,000 so that they could train for county, national and regional championships. Their head coach, Amy Rodger, ensured that more than 20 swimmers and their coaches were able to get over there by working with local television stations and Barclays. Will the Secretary of State also thank the many other companies that have done so much to help our constituents?
Chris Grayling
My hon. Friend’s words speak for themselves. I am very grateful to Barclays for providing that help, and I know that a number of other businesses have done the same. The credit card companies in particular have been very constructive in their dialogue about sharing the cost of the repatriation with us, and Lloyds was especially good at getting out of the traps and working with us. I think that this was a moment when corporate Britain behaved in the right way, and worked alongside us to do the right thing.
Luke Pollard (Plymouth, Sutton and Devonport) (Lab/Co-op)
Having spent five years working for the Association of British Travel Agents and lobbying for greater holiday protection, may I extend my thanks to the people working hard for that and ask the Secretary of State to extend it to travel agents and tour operators? What hit does he expect the Air Travel Trust fund to take as a result of Monarch’s collapse, and can he give an assurance that the ATOL protection contribution will not go up, which would mean holidaymakers having to pay more in future?
Chris Grayling
We will not know exactly how much until we have gone through the numbers in detail with the administrator. We do know that only a relatively small proportion of Monarch customers were ATOL protected, because the nature of the business was mostly flight-only. I will happily inform the House once we have gone through all the details, which will take a bit of time, but it will not be a substantial proportion of the total, because of the small proportion of customers who are covered.
Henry Smith (Crawley) (Con)
Will my right hon. Friend join me in paying tribute to Gatwick-based airlines such as easyJet and Virgin Atlantic for stepping up and offering alternative employment to Monarch employees who now find themselves out of work?
Chris Grayling
I am very grateful to the airlines for the way they have responded, and they have done so in a variety of ways. It was a real team effort at Gatwick, with airline staff, airport staff and others coming together to deal with the immediate issues for passengers, and then really working to get Monarch employees sorted out as quickly as possible. I am very grateful to the staff at Gatwick, as I am to those at all the five airports affected.
Diana Johnson (Kingston upon Hull North) (Lab)
The Secretary of State said in his statement that the collapse of Monarch Airlines was deeply regrettable, so I wonder whether he will support the call by the pilots’ union for a probe into what exactly happened around the collapse.
Chris Grayling
I suspect that there will be exactly such a probe, but I also suspect that it will be led by the hon. Member for Nottingham South (Lilian Greenwood) and her Transport Committee. I do not want to gainsay what the Committee will do, but I would expect a rigorous inquiry, and my Department and the CAA will be very happy to co-operate with it.
Mr Speaker
That was a very speedy recovery from the intoxicating effects of conversation with the right hon. Member for North Shropshire (Mr Paterson), and a very useful guide to new Members on how to perform at a moment’s notice in the way that the hon. Gentleman has done. He did signal earlier that he wished to be called, so I was not picking on him.
Chris Grayling
Of all those involved, I feel most deeply for those who made bookings but have now lost trips and holidays. I very much hope that we can get Monarch staff into employment quickly. I hope that we can get all the passengers back safely and well. For those who have lost bookings, it is a deeply traumatic time, and we heard some very sad stories last week. Anyone who booked with ATOL protection or who booked using a credit or debit card will be able to get a refund. My advice to anyone in that position is always to ensure that they have at least one of those cover options available in case something like this happens again—let us keep our fingers crossed that it does not for a very long time.
Liz McInnes (Heywood and Middleton) (Lab)
Monarch has failed to consult its 1,800 employees on redundancy. What estimate has the Secretary of State made of the costs of compensation for those affected workers?
Chris Grayling
As the hon. Lady will know, there are statutory provisions for when businesses go into administration, because they tend not to be able to consult employees about redundancy. It falls to us to try to sort them out, and that is what we will seek to do. There are statutory provisions for compensation for people in these circumstances, but my hope is that the financial impact on them will be limited, given the number of companies looking to recruit as quickly as possible.
James Cleverly (Braintree) (Con)
Although the distance between Stansted, my local regional airport, and Luton, which is Monarch’s home airport, is relatively small, some people will be displaced much further afield. What plans has the Department put in place to ensure that those who are displaced during the recovery phase can get back to their most local home airport?
Chris Grayling
That will become a particular issue this week. We have brought 80,000 people back, but there are still about 30,000 left. We have emptier planes this week and greater consolidation of planes. We have 747s operating, and clearly a 747 replacing a short-haul Monarch aircraft leaves a gap for seats, so we are bringing flights together and more people will arrive back at a different airport. There will be a coach waiting for them that will take them straight back to their original airport, and the airports are making special arrangements on carpark access and fees to ensure that people do not lose out as a result. The CAA is managing a big bus operation and those people will get back to the place where they started.
Stephen Timms (East Ham) (Lab)
Actually, the fall in the value of the pound was a factor in the collapse, although I agree with the Secretary of State that another factor was the UK ban on flights to Sharm el-Sheikh. Since that ban was introduced, the Egyptian authorities, with UK support, have gone to enormous lengths to improve security at that airport. I believe that every other western country has now lifted its ban. Could we now lift ours before even more people lose their jobs?
Chris Grayling
The right hon. Gentleman will know from his experience in Government that we take security issues very seriously. We have looked exhaustively at the issues around Sharm el-Sheikh. We have not yet taken the decision to resume flying there. I would love us to be able to take it, but we have to be mindful of the security concerns and the risks to the travelling public of the United Kingdom. I assure the right hon. Gentleman that as soon as we feel that we can take that step, we will. We hold back only for good security reasons.
Victoria Atkins (Louth and Horncastle) (Con)
This has been a massive exercise in repatriating citizens and our thanks should go to the Civil Aviation Authority and others that made it happen. Will the Secretary of State please confirm the cost of the repatriation exercise? Are insurers, credit card companies and banks playing their part in reimbursing the taxpayer?
Chris Grayling
We expect the total gross costs of the repatriation to be around £60 million. We will recover money from all those different groups, and I will in due course be able to tell the House exactly how much the taxpayer has contributed. However, my hon. Friend can be reassured that we are very focused on making sure that there is clear burden sharing, and that it is not only the taxpayer who pays.
Stephen Lloyd (Eastbourne) (LD)
I applaud the Government’s efforts in bringing back passengers who were not protected by ATOL. In the modern era of mass travel by air, would it not be sensible to look at legislation around ATOL and cover both hotels and air fares in case something similar happens in future?
Chris Grayling
That will clearly be debated again and has been considered before. The issue is that we would have to apply a levy to every single air fare sold in the UK, whether for a UK airline or otherwise. We could not simply apply a charge to a UK-based airline for which we were responsible—we would have to charge Ryanair, Air France and Emirates passengers as well. Effectively, we would be putting up air passenger duty. I am not saying that we should not do that, but if we were to we would need to use great thought and care beforehand.
Rachel Maclean (Redditch) (Con)
My constituents in Redditch are incredibly hard working—thanks, no doubt, to the Government’s amazing record of job creation. However, they look forward to their well-deserved holidays, and price competition has contributed to their being able to take those breaks. Will the Secretary of State confirm that he sees no risks in the airline market that he ought to be considering?
Chris Grayling
That concern has been raised by the Opposition as well. The first thing to say is that our aviation sector is very strong. If people visit our airports, as I do, they will find that virtually every one will say that this has been a record year in terms of the number of passengers carried and that there have been record days in their history. Passengers are not stopping flying—more and more passengers are flying, and I am confident that that will continue.
I am also confident that we have good airlines that are growing fast: look at the success of easyJet and Jet2. Tour operators are also doing well. I am confident that the sector will grow and develop; there is demand for slots and runway space and there are acquisitions and new investments in new centres such as Jet2’s investment in Stansted. We should be confident about the sector. We can never rule out problems in the future or be certain that no airline will ever run into difficulties again. That is why we have to think through whether we need to take steps to make sure that there is proper protection for consumers. But we should be confident in our sector.
Huw Merriman (Bexhill and Battle) (Con)
I thank my right hon. Friend, his Department and the CAA for delivering the largest ever peacetime repatriation. As he will be aware, the UK insolvency framework does not allow insolvent airlines to continue flying, unlike what happened with Alitalia in Italy and Air Berlin in Germany. Will my right hon. Friend consider looking at the insolvency framework again in that light?
Chris Grayling
We will certainly give some thought to that. It is very noticeable that other airlines have been able to carry on flying in administration. The risk, of course, is that an aircraft could easily be impounded by an international airline. One of the reasons we sought to hire our own fleet was to remove that risk. If we had used the Monarch planes, there was a danger that, if they arrived at an airport and a local creditor decided to take action, the plane might have been unable to return. That is something we always need to weigh in the balance. We need to look at what happened with Air Berlin and Alitalia and see whether there are lessons to be learned, but first and foremost our task should always be to protect passengers whose journeys might otherwise be at risk.
Ms Nusrat Ghani (Wealden) (Con)
Price wars, stiff competition and a change in travel habits all contributed to Monarch’s failure. My constituents in Wealden have been in touch about their holidays and business trips being ruined. Can the Secretary of State confirm that he and his ministerial colleagues have visited returning passengers at UK airports and say what feedback he has received?
Chris Grayling
I met the first flight back at Manchester airport last Monday and my noble Friend Lord Callanan visited Leeds Bradford airport on the same day to meet people coming back. I have had a lot of letters from people who were able to travel back on the repatriation flights saying how grateful they were and how smooth it had been. There are bound to be some hiccups on the way—we had weather problems in Funchal, which led to some cancellations—but in overall terms this has been a very smooth effort and a great tribute to a team of people in the CAA who are not airline specialists, but who have come together to run an airline in a way that was, frankly, enormously impressive.
Andrew Bridgen
Thank you, Mr Speaker. Does the Secretary of State agree that, although every lost job is a human tragedy, the British aviation industry remains robust and resilient? I am reminded of 2012, when British Midland International collapsed, with the loss of 1,200 jobs at East Midlands airport in my constituency. These are very highly skilled people who are quickly absorbed back into the economy. Unemployment in North West Leicestershire remains at a record low of 1%.
Chris Grayling
My hon. Friend is absolutely right. I am delighted that we have a thriving sector, with more than 6,000 vacancies, for which the 1,800 people who have lost their jobs can apply. I am also delighted by the fact that easyJet is saying, “We want to hire 500 of them straightaway. They’re good people; we want them.” I am very confident for their future. All the support they need in the short term is being provided, but I am pretty clear that in a thriving sector those people will have a strong future.
Wendy Morton (Aldridge-Brownhills) (Con)
Quite clearly this has been a huge repatriation and logistical task. Can the Secretary of State confirm, though, what entitlement passengers who have not yet travelled—I am sure most of us have them in our constituencies—have to a refund?
Chris Grayling
We will be continuing to give advice and guidance to those people for some considerable time. We will also be contacting people this week to see who wants and has a need to return, as part of the repatriation exercise. All those who have booked through credit card companies or who have ATOL protection, regardless of how long they are out there for—I am sure a small number will be out there for an extended period—will be able to secure a refund when the time comes.
Iain Stewart (Milton Keynes South) (Con)
As well as reviewing the effectiveness of the ATOL scheme in the light of this incident, will the Secretary of State take the opportunity to look at the providers of travel insurance? Many people travelling thought that they were covered for the collapse of an airline under their travel insurance policy, only to find that they were not.
Chris Grayling
This is something that I will want to take up with the insurance industry. It does seem unfortunate that cover should not include something that happens once in 10 years. This is one area where there is a case for change. It would have made life a lot easier had that been the case.
Kevin Foster (Torbay) (Con)
I welcome the statement and the detail of what the Government have been doing, in particular the fact that 80,000 of 110,000 people abroad are now back in the UK. Can the Secretary of State confirm, though, that we will apply the lessons learned to the legislation currently going through the House to reform the ATOL scheme?
Chris Grayling
We have the advantage of having legislation before Parliament at the moment. If there are short-term measures that we could take, we would certainly be open to doing that, but I do not want us to rush into doing something without doing the ground work properly. We need to look carefully at what has happened, learn the lessons and make any modifications necessary. I assure the House that that is what we will do.
Mr Philip Hollobone (Kettering) (Con)
We should give credit where credit is due; it has been a simply remarkable achievement to repatriate such a large number of passengers in such a short period, and I congratulate my right hon. Friend the Secretary of State, his Department and the CAA on putting this together. Here we are on the first Monday back after the conference recess, and we could have been faced with having 110,000 British citizens stranded overseas. Instead, thanks to his actions, 80% of them are already back and the rest can be confident of coming back on time.
Chris Grayling
I am grateful to my hon. Friend for those kind words. They are a tribute to the work done by people right across Whitehall—nine different Departments and organisations were involved—by those who have gone out to man the departure lounges at airports around Europe and by the people operating the airline. This has been a fantastic effort, they have done a brilliant job for all of us and I am very grateful to them.
Tom Pursglove (Corby) (Con)
What steps is my right hon. Friend taking to make sure that there is no loss in capacity and that excess slots that have now emerged are allocated as quickly as possible?
Chris Grayling
The fact that there is now some debate over the value of the slots as they are taken up by other airlines shows that there is a queue of operators waiting to move in where Monarch has been. We have already heard from Jet2 that it is looking to pick up some of the slack that Monarch has left behind, and I have no doubt that we will see others moving in very quickly as well. Our sector is thriving, those gaps will be filled and there will be lots of flight opportunities in future.
Airports National Policy Statement
Lord Grayling Excerpts(8 years, 1 month ago)
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The Secretary of State for Transport (Chris Grayling)
In my statement on 13 July this year, I said I would set out the next steps of the draft airports national policy statement (NPS) process following the summer recess.
The Government consulted on a draft airports NPS between 2 February and 25 May this year.
We received over 70,000 responses, and work to analyse them is ongoing. I would like to thank everyone who took the time to feed in their views.
In the consultation document, my Department was clear that further work was under way to update the evidence base, including revised aviation demand forecasts and the Government’s final air quality plan. It was intended these documents would be presented for consideration during the initial consultation, but the timing of the general election meant this was not possible.
I am therefore confirming that there is a need to conduct a short period of further consultation to allow this updated evidence to be taken into account. This further consultation will focus mainly on the specific elements of the NPS affected, and is expected to begin later this year.
I appointed the former Senior President of Tribunals, Sir Jeremy Sullivan, to provide independent oversight of the consultation process. I am very grateful to him for his hard work in helping to ensure that the consultation was as open, fair and transparent as possible. Today I am publishing his report on the initial consultation, and can announce that he has agreed to oversee the period of further consultation.
In my statement in July I said that the timing of the election—in particular the need to re-start the Select Committee process—meant we now expect to lay any final NPS in the first half of 2018 for a vote in the House of Commons. This Government remain committed to realising the benefits that airport expansion could bring, and I can confirm that we do not expect this additional period of consultation to impact on the timetable for parliamentary scrutiny of the NPS.
[HCWS119]