Chris Williamson
Main Page: Chris Williamson (Independent - Derby North)Department Debates - View all Chris Williamson's debates with the Leader of the House
(11 years, 11 months ago)
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Phil Wilson (Sedgefield) (Lab)
I want to take this opportunity to raise an issue that is helping to fill my postbag at the moment: the state of rural bus services in County Durham and Darlington. I know that that is a concern for many MPs, especially those in County Durham. Only yesterday, I received a petition from Aycliffe village signed by 300 people, which complains about the state of rural bus services in the area and the lack of buses, especially in the evening.
Sedgefield covers part of south Durham and all the rural parts of Darlington borough. It covers about 150 square miles and, for people without a car, travelling from A to B can be a big problem. Car ownership in County Durham is below the national average. Almost 30% of households are without a car, compared with about 25% nationally. For those on low wages, the elderly, young people and disabled people, getting around the constituency can be a chore. The Government’s approach to cutting bus subsidies and their more general cuts to local government are making the situation worse.
I could spend the rest of my speech talking about the severity of the Government’s cuts, but the Government would just say that the problem is the way in which the local authority is introducing the cuts. We could go on in that vein, but it would not resolve anything. When a constituent comes to my office—as constituents do from time to time—and says that he cannot get to work because the buses have changed, he wants a solution. He does not want to hear what will happen in the future or an argument about who is to blame; he wants me to tell him how he can get to work in the morning. I want to say a little about what some of my local communities are doing to provide community transport, because what people are looking for—the elderly and the low-paid—is a solution to the problems.
People in communities such as Hurworth, Middleton St George, Sadberge and Brafferton in the Darlington part of my constituency are working with the Community Transport Association and Darlington borough council to assemble a workable community transport service for the area to help people who are suffering because of the lack of an adequate bus service. I hope that the Minister can offer his support and encouragement to the stakeholders of that scheme to ensure that it is a success.
Durham county council already runs a community transport service called Link2, which provides a community service in areas where commercial bus services do not want to go. I congratulate the county council on providing that service. It has seen its budget for bus services reduced by about £1.3 million. The rural bus subsidy grant for the county has been cut by about 40%. Companies such as Arriva are therefore not receiving the subsidy that they received in the past, so they are pulling buses off routes, which is making it difficult for my constituents to get around. I have constituents who are having difficulties in getting to work, whose journeys have been lengthened and who cannot take up jobs that they want because they are unable to get to the place of work. Does the Minister agree that although cuts to bus subsidies might make savings in some areas, they create costs elsewhere? Will he say whose responsibility it is when vulnerable people fall through the transport net because of the cuts?
To give an example, I have an elderly constituent who does not want to be named, but who wants me to relay her story because she believes that what is happening to her is also happening to others. My constituent is a 75-year-old pensioner who looks after her 50-year-old daughter who has Down’s syndrome and serious medical conditions. They often rely on friends and family to get to a doctor’s appointment, but one day family and friends were not available, there were no taxis, and buses no longer ran a convenient distance from their home. The doctor’s surgery was about a mile away so my constituent decided to walk there with her daughter. Such a journey might take a fit person about 15 minutes, but it took my constituents considerably longer and on the way back they had to stop at the community centre and ask someone for a lift to get back home. Such things are happening day in, day out, not just in County Durham but all over the country. The Government may argue that this level of cuts is necessary. That is fair enough, but surely someone must take responsibility for the consequences of those cuts.
Another constituent of mine, 16-year-old Lauren Peters, attends New College Durham. A few weeks ago she was stranded at Durham bus station. The bus service had been cut due to inclement weather, but the bus company did not alert local colleges about the difficulties. My constituent was stranded without any money and the battery on her phone was about to run out. She had to wait in the cold, damp, bad weather for three hours before her father could come to pick her up.
We understand that bad weather can cause disruption, but where was the customer care from companies such as Arriva, one of the biggest bus companies in Europe? There was no phone call to local colleges or major employers. I have written to Arriva and the county council, and although I have received a reply from the county council I have yet to hear anything from Arriva. Mrs Peters contacted me the next day to raise the issue and complain. If bus companies are now running merely commercial routes—I believe the route in question was commercial—surely we need better alert systems when there is disruption to help people to get home. There seems to be no customer care.
Lauren was not the only vulnerable person affected by the disruption that day. I want solutions to the issues I have raised. I want to work with community groups to establish community bus services where possible, and available funding to be used to that effect where subsidies to existing bus services have been withdrawn.
I know that Durham county council has gained about £374,000 from the rural sustainable community transport initiative, but that is a one-off grant; it does not happen every year. These are austere times and we should be all in this together. My question to the Minister is this: if this level of cuts is necessary, who is taking responsibility for those who fall through the net? Although I will help local authorities and communities as best I can to establish community bus services, does the Minister agree that there is only so much that the local community can do?
Chris Williamson (Derby North) (Lab)
I will start by telling the Minister that there is great concern in my Derby constituency about the possibility of a pre-Christmas betrayal of the Bombardier work force in the city. In March 2011, the Prime Minister brought the Cabinet to Derby because he felt it was an excellent backdrop that would give credibility to his assertion that he wanted to rebalance the economy. Derby provided a perfect illustration of the sort of economy that the Government—who at the time were relatively new—wanted to create. Within a few weeks, however, that rhetoric sounded hollow. It was followed up in the Budget statement when the Chancellor spoke about the march of the makers:
“We are only going to raise the living standards of families if we have an economy that can compete in the modern age. So this is our plan for growth. We want the words: ‘Made in Britain’, ‘Created in Britain’, ‘Designed in Britain’ and ‘Invented in Britain’ to drive our nation forward—a Britain carried aloft by the march of the makers. That is how we will create jobs and support families.”—[Official Report, 23 March 2011; Vol. 525, c. 966.]
However, just a few months later, when the Government could have done something positive to show that they meant those words, they awarded preferred bidder status for the Thameslink contract to Siemens rather than to Bombardier in Derby.
Ministers seem to have ignored the provisions within the invitation to tender documentation. The ITT states that the successful bidder must demonstrate that it can exploit advances in technology and have a world-class proven solution in one package, but Siemens did not have that. It had not developed a lightweight bogie; indeed, plans were still on the draughtsman’s board and had not even been tested or put into any form of production. In spite of that, however, Ministers decided to appoint Siemens as the preferred bidder.
That decision has already led to 1,400 job losses in Derby at Bombardier, and considerably more jobs have been lost in the supply chain. The Department for Transport seems not to be acting in the national interest and to be completely out of control. We saw the fiasco of the franchise for the west coast main line and, as we know, that process was suspended. The same civil servants who gave rise to concern over that franchise also worked on the Thameslink contract, yet Ministers seem to draw a veil over that.
Ministers have also tried to blame EU regulations for the decision to award preferred bidder status to Siemens. However, that simply will not wash because, when convenient, Ministers have ignored EU regulations on the issue. EU regulations are enshrined in English law. Regulation 4 is apposite and states:
“A contracting authority shall (in accordance with Article 2 of the Public Sector Directive)…treat economic operators equally and in a non-discriminatory way.”
That did not happen. At the fourth stage of the evaluation process, the DFT adopted a complex methodology involving the use of discount rates as shown in the Treasury Green Book, which is complicated for a layperson like myself. When the Transport Committee took expert evidence, Professor Karel Williams from the Manchester business school stated that there was a
“bias in favour of Siemens because they had a superior credit rating and that gave them an advantage of maybe several hundred million pounds”.
It therefore seems clear that the Government are in breach of their obligations under regulation 4.
The Business Secretary reportedly said that the end result of the evaluation process was inevitable. The ITT makes it clear that the Secretary of State will let the contract. In my view, that makes the Thameslink contract a Government contract. Regulation 23(b) of the public contract regulations makes it clear that, where a bidder has been found guilty of corruption, it should be excluded from the process. We know that Siemens falls into that category, yet the Government have proceeded regardless.
When the matter has been raised with Ministers, they have claimed that Siemens should not be excluded from the bidding process, and to some extent I agree. Siemens plc is not part of the special purpose company—Cross London Trains—which has been created to take forward the Thameslink contract. Siemens Project Ventures GmbH, which is a division of Siemens AG, is part of that special purpose company. Siemens AG has been convicted of corruption which, in my view, makes it ineligible for the contract unless there is an overriding requirement “in the general interest” to include it—that is what the regulations state.
As I have said, Ministers say there are no grounds to eliminate Siemens but they are applying the wrong test. They should have been looking at whether it was right to include the special purpose company that includes Siemens AG as part of the consortium. I therefore hope that when he sums up the Minister will give a commitment to look at the issue again. I believe that the Government are in breach of regulations 4 and 23. We will not get value for money, although Ministers claim we will—they are adopting a very expensive model to procure the trains and there are less expensive ways of pursuing that.
The industry is in great shape and the market is expanding, and we have huge potential and a massive opportunity, so I urge the Minister to ensure that he does not allow the industry in this country to slip through his fingers. He has the power to stop the contract—the invitation to tender makes that extremely clear—to do the right thing and to look at it again. Hopefully, he will give Bombardier in Derby the opportunity to continue to deliver a train manufacturing industry—
Mr Burns
In that spirit, I hope that any meetings we have would be positive so that we could make progress.
I now turn to the contribution from the hon. Member for Derby North (Chris Williamson) about rail procurement and Bombardier. The coalition Government are committed to continuing to invest in rail, building on its success and facilitating future economic growth. As he knows, we are investing £18 billion in this spending review period alone on a programme of rail improvements as large in scale as anything seen since the Victorian era. I am aware that the hon. Gentleman, as well as my hon. Friends the Members for South Derbyshire (Heather Wheeler), for Mid Derbyshire (Pauline Latham), for Erewash (Jessica Lee) and for Amber Valley (Nigel Mills) have been active campaigners on behalf of Bombardier, which has a key role in Derby’s economy.
Therefore, I am pleased to be responding to this debate shortly after Southern has announced its intention to exercise an option for 40 additional rolling stock vehicles to be delivered by Bombardier in 2014. Furthermore, Southern is working with the Department to develop proposals for a potential competitive procurement for 116 new vehicles, including options for further vehicles. Ministers expect to be able to make a further announcement on this matter shortly. Bombardier is also among the shortlisted bidders for the Crossrail rolling stock procurement.
These procurements offer Bombardier and other train manufacturers new opportunities to bid for work. The Thameslink rolling stock contract is complex, as the hon. Gentleman understands, and it introduces much greater responsibility for the train’s performance in service on the part of the train manufacturer and maintainer than is traditionally the case. Therefore it has—quite rightly— taken some time to get the details right. Siemens and its partners in Cross London Trains have been working very closely with the Department for Transport to reach commercial agreement on the Thameslink rolling stock project. I am pleased to say that there has been substantive progress in recent weeks and the Department has now reached commercial agreement on the key elements of the deal with the Cross London Trains consortium. Last night the Cross London Trains consortium published its information memorandum to potential funders.
This important milestone enables the next stage of the process of further engagement with the debt market to continue to put the necessary financing in place for the deal. Our target, once the necessary credit approvals have been secured, is to reach financial closure as soon as possible in the new year. I hope that hon. Members will appreciate the importance of the statement I have just made, which is crucial as part of the continuing investment in improving and enhancing the infrastructure and performance of our railways.
In passing, I note that the hon. Gentleman suggested that the same civil servants who were responsible for the franchising deal for the west coast main line were working on the procurement deals, but I can assure him that that is not the case. I hope that that reassures him.
Regarding the Crossrail rolling stock contract, we are clear that our priority is to secure the right train at the right price, through a strong and fair procurement competition. This competition is different from rolling stock procurements such as Thameslink that were launched by the previous Administration. It has taken account of the package of measures to reform public procurement announced in the 2011 autumn statement, and it also includes, for example, the commitment of £350 million of public investment to this £1 billion programme. Four bidders—Bombardier, CAF of Spain, Hitachi and Siemens—have submitted initial bids. Crossrail Ltd is responsible for the procurement and is currently assessing bids received at the end of October.
Chris Williamson
Will the Minister confirm whether credit ratings will be a significant factor in determining the Crossrail contract, and whether there will be an announcement in this Chamber on the financial close of the Thameslink contract?
Mr Burns
On the hon. Gentleman’s second point about the final part of that process, we expect a conclusion early in the new year, though I cannot provide a precise date at this point. On Crossrail, as I said to him earlier, the procurement contract is going ahead and normal processes will be abided by and gone through. It is premature at this stage to start speculating on the detail of future processes, because there is an element of commercial confidentiality and the deals, checks and balances that one would expect from a normal major procurement of this nature.
The Crossrail procurement is the responsibility of Crossrail Ltd. It is currently assessing the bids received at the end of October. I expect that all bidders will have submitted strong, competitive bids that meet the exacting requirements of Crossrail, while providing best value for money for the UK taxpayer and future fare payers. Crossrail and Thameslink will have a transformational impact on travel in London and the south-east. They will significantly boost jobs and growth more widely in the economy. Their benefits are vital and urgently needed, and the Government remain firmly committed to their delivery.
The hon. Member for Islington North mentioned a number of other issues. I will write to him about them, except to say—this will come as no surprise to him—that I do not share his enthusiasm for what would in effect be a renationalisation of the railways.
I should like to ensure that the House is fully aware of what is being done to help Bombardier and Derby. The hon. Member for Derby North will be aware that Bombardier recently secured a £188 million bid to build 130 new railway carriages following a procurement competition run by Southern Railways. Last week, Southern Railways announced that it was exercising an option to invest in 40 new Electrostar carriages from Bombardier. Bombardier is among the suppliers who have bid for the new Crossrail rolling stock, which I referred to earlier, but as the procurement process is live it would be inappropriate to go into details. The Department for Transport is working to develop proposals for a further procurement of 116 rolling stock vehicles, which Southern, if it goes ahead, will be able to bid for. Through its talent and expertise, Bombardier has secured a considerable amount of work. There are a number of significant opportunities for it to seek to make more procurement bids successfully, which would lead to a bright future for the company. If it secures all the potential bids, it will help it to strengthen its capabilities and work force, and allow it to develop its potential.
In conclusion, the Government do not just talk the talk, they walk the walk. In the past two and a half years, we have invested record amounts of money—billions of pounds—to play catch-up from the failure of successive previous Governments to invest in our railway infrastructure, so that we have a first-class, fit-for-purpose railway network that can compete with our European competitors and ensure that we get a higher standard of journey for passengers and more freight on to the railways. In recent years, since privatisation, we have seen freight on our networks increase by 60%, with all the benefits that follow on from taking the freight off our road networks. [Interruption.] On the prompting of one of my hon. Friends, I would like to wish you and the staff, Mr Deputy Speaker, a very happy Christmas, secure in the knowledge that we are investing significantly to improve our railways. If you are returning to your constituency for Christmas on the west coast main line with a Virgin train, I wish you a prompt, enjoyable and speedy journey.
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