Oral Answers to Questions

Debate between Lord Grayling and Ian Mearns

Thursday 2nd May 2019 Commons Chamber

[Ian Mearns (Gateshead) (Lab)]

Ministers will have seen the National Audit Office report on the sale of railway arches by Network Rail, which includes some criticism. It is of some concern that the impact on tenants was not an explicit sale objective and was considered only late in the sale process. Ministers were aware—we had meetings with the Minister responsible before the sale took place—but they seemed indifferent to the significant potential for massive rent rises for the businesses in the railway arches across the country. Given this NAO report and its criticism, what will Ministers now do to safeguard the interests of those businesses and to make sure that they are not subjected to massive rent rises by the new leaseholder management company?

[Chris Grayling]

When I took on this sale, I ensured—in the work we did to prepare for the sale and with potential buyers—that additional safeguards were put in place for those tenants. Whether the arches had remained in the public sector or been sold, it would always have been right to ensure that a market rent was charged. There is no expectation of rent increases out of line with market rents. In the public sector, it would not have been proper use of public money to provide subsidised rents for businesses.

Transport Secretary: East Coast Franchise

Debate between Lord Grayling and Ian Mearns

Wednesday 23rd May 2018 Commons Chamber

[Chris Grayling]

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

[Ian Mearns (Gateshead) (Lab)]

Will the Secretary of State give way?

[Chris Grayling]

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

[Ian Mearns]

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

[Chris Grayling]

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

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

Oral Answers to Questions

Debate between Lord Grayling and Ian Mearns

Thursday 1st March 2018 Commons Chamber

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

I am not sure I see any merit in the early termination of the Virgin Trains East Coast franchise. That is not something I would wish to happen, but we have to deal with the world as it is, rather than as how we would like it to be.

My priority is to ensure the continued smooth running of the east coast franchise for its passengers and employees, and to make sure that the trains run and deliver the service that people need. As I told the House on 5 February 2018, a new arrangement to operate the railway prior to the new east coast partnership in 2020 needs to be put in place. We are currently conducting a full appraisal of the options, and I will return to the House in due course.

[Ian Mearns]

I am afraid to say that service standards have deteriorated on the east coast line since Virgin-Stagecoach took the franchise—I am a regular customer on that line—despite the best efforts of the excellent staff on board trains and at stations. Those staff face having their sixth employer in a decade and a half. Will the Secretary of State meet me and some of those staff, so that they can express their concerns about the way in which the franchise has been conducted? Will he give the House an undertaking that there is a genuine public sector operator ready to take over should that be required—or has Directly Operated Railways been outsourced already?

[Chris Grayling]

On the last point, I can give an absolute guarantee that that is the case; we have been making preparations for different eventualities for some time and there is a genuine alternative, if that is deemed to be best for the passenger and best value for the taxpayer. My ministerial colleagues and I are happy to talk to staff, but I would correct the hon. Gentleman on one point: the reality is that the independent assessments have shown a higher level of passenger satisfaction on that route since the change of franchise, not a lower one.

Oral Answers to Questions

Debate between Lord Grayling and Ian Mearns

Thursday 30th November 2017 Commons Chamber

[Ian Mearns (Gateshead) (Lab)]

6. What recent assessment he has made of the effectiveness of the regional distribution of transport spending.

[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.

[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.

Oral Answers to Questions

Debate between Lord Grayling and Ian Mearns

Thursday 13th July 2017 Commons Chamber

[Chris Grayling]

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

[Ian Mearns (Gateshead) (Lab)]

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

[Chris Grayling]

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