Walsall-Rugeley Line (Electrification)

David Winnick Excerpts

Thursday 14th June 2012 Commons Chamber

[Mr Burley]

The short answer is absolutely, and I shall say more about that later. One of the startling facts that I discovered when researching for my speech was that the electrification of the line has been a project for various council administrations and Members of Parliament of all colours since the early 1960s—20 years before I was even born. It really is a project whose time has come.

[Mr David Winnick (Walsall North) (Lab)]

I must declare an interest, as not only do a good many of my constituents use the line, but I myself use the section between Birmingham New Street and Bloxwich North. I therefore understand perfectly the position that the hon. Gentleman is describing.

This is, of course, an all-party effort, and I am sure that the hon. Gentleman will not wish to make any party propaganda points. I certainly have no wish to do so, and nor does my hon. Friend the Member for Walsall South (Valerie Vaz). For the reasons that have been given, the project has all-party support. However, is it not also the case that electrification could create well over 1,000 jobs? As the hon. Gentleman knows, jobs are urgently needed in our part of the world.

[Mr Burley]

Indeed. I believe that the exact figure is 1,386, and that is part of the economic case that I hope to put to the Minister this evening.

Since the general election, the upgrading of the Chase line has been one of my key priorities. I have been working closely with all the key players, including the councils, Centro, Network Rail and London Midland, the operator of the trains on the line. I have already hosted two successful stakeholder meetings, bringing together all the key players to discuss how we can proceed with the development of the line.

It is fair to say that there has been massive historical frustration as to why this line has not been electrified at some point in the past 20 years, and why the scheme is still not included as a named scheme for control period 5—CP5—as part of the high-level output statement, or HLOS, due to be published by the Department in July this year. I am aware that reference was made to Rugeley-Walsall electrification in the initial industry plan in September 2011, but only as a “candidate scheme” rather than as a commitment. That was extremely disappointing as we had hoped that the strategic importance of the project would have been recognised and there would have been a firm commitment in the Government’s HLOS announcement for CP5.

I am pleased, however, that since the election we have managed to persuade Network Rail to fund the west midlands line speed improvement scheme for the Chase line. This speed upgrade from 45 mph to 75 mph, announced in the Chancellor’s autumn statement, will not only help support our efforts to bring business to the area, but it will reinforce the message that Cannock Chase is the place to come to in south Staffordshire. However, Network Rail has not set any time scale for the line speed upgrade, and it may not happen until after the current Walsall to Rugeley re-signalling programme is completed. Options are being drawn up over the next six months, but the funding does not have to be spent until March 2014. This means it could take a further two years before my constituents see any improvements.

The line speed improvement is, however, only a sticking plaster on the wound; the real fix that has long been needed is the electrification of the Chase line itself, and I would like to take this opportunity to explain to the Minister why that is the case. Over recent years, the Rugeley-Cannock-Walsall-Birmingham line—the Chase line—has continued to go from strength to strength. Increased passenger growth of 10% per annum or more has been achieved in recent years. Over half a million passenger journeys a year are now made just from the three stations in my constituency. The Chase line now has the second highest levels of passenger growth in the Centro area. Yet despite that, the route has seen a reduction in services and shorter trains, most recently last December through the service level commitment changes, as a direct result of a shortage of diesel trains. That is because the Chase line is the only Centro route operating out of Birmingham New Street where diesel trains have to operate. That has resulted in an inefficient mix of diesel and electric services between Birmingham and Walsall, in order for diesel trains to operate north of Walsall on the non-electrified section to Rugeley. Therefore, in spite of having one of the highest annual passenger growth figures in the west midlands, passenger services on the route had to be reduced from December 2011 as a direct result of it not being possible to operate the whole Birmingham-Walsall-Rugeley service with electric trains and the need to transfer scarce diesel rolling stock to provide capacity on other routes.

The situation is predicted to get even worse. From 2013, the Chase line will have the lowest service frequency of any suburban route radiating from Birmingham and yet still have one of the highest passenger growths. So I say to the Minister that we urgently need to address this contradiction of passenger growth and reduced services, and the only solution is the electrification of the Chase line. That must be included in CP5.

[Mr Winnick]

On the point about last December’s reduction in service, many of my constituents have pointed out to me that people took to the roads instead. There is already a lot of congestion on the roads from Birmingham to my constituency and that of the hon. Gentleman, and it would get even worse.

[Mr Burley]

As the hon. Gentleman will be aware, the railways have undergone a renaissance in recent times and it seems perverse that at a time when more and more people wish to use the railways we are in effect forcing them on to roads that are already heavily congested. I am sure that, like me, the hon. Gentleman is a regular driver on the M6 and surrounding roads, so he will know that traffic congestion is a major problem on them. We need more people on the trains, not fewer. It is therefore perverse to force them on to the wrong mode of transport.

[Mr Winnick]

I rely entirely on public transport.

[Mr Burley]

Excellent.

Given the history of this scheme, it is astonishing that this small 15-mile section of track has not already been electrified. The scheme originally had a high-profile inclusion in the former Railtrack network management statement in 1999, including a detailed pre-feasibility study showing it was deliverable. It was again identified in Network Rail’s electrification strategy 2009, and in its west midlands route utilisation strategy in 2011, as a scheme that should be fully considered in more detail as part of the west midlands and Chilterns route utilisation strategy.

Although Centro and other local stakeholders feel that the west midlands and Chilterns route utilisation strategy process did not consider the case for electrifying the route as effectively as it could have, recent work by Network Rail demonstrates that the electrification scheme has a positive business case and a benefit-cost ratio of 1:2, even without the inclusion of the wider strategic benefits that will arise from creating an alternative electrified rail connection between the west midlands and the west coast main line, which links the region to the north-west and Scotland.

The Minister may not be aware that recent work undertaken by KPMG for Centro has also identified significant further regional economic benefits from the electrification of this route, which, again, are not included in Network Rail’s business case. KPMG’s analysis indicated that electrification would generate an additional £113 million of gross value added benefit per annum and support the creation of 1,370 additional jobs, as has been mentioned. That is why Centro and others locally are so passionate about seeing the Government confirm the Walsall to Rugeley electrification as a high priority scheme for 2014 to 2019 in the Secretary of State’s forthcoming high-level output statement on rail investment. That is also why both Centro and the West Midlands Regional Rail Forum have now identified the scheme as the No.1 electrification priority for the whole of the west midlands region.

--- Later in debate ---

[The Minister of State, Department for Transport (Mrs Theresa Villiers)]

I congratulate my hon. Friend the Member for Cannock Chase (Mr Burley) on securing this debate on such an important issue. It is very timely because decisions on the Government’s high-level output specification are imminent. I have been impressed by the determination of the coalition of different organisations campaigning for full electrification of the Chase line, and I pay tribute to the work of my hon. Friend, who has this evening put the case for that improvement to the House with passion, clarity and detail. I also note the support of my hon. Friend the Member for Lichfield (Michael Fabricant), who is in his place, and the work done by many others, such as the Cannock Chase rail promotion group. Like my hon. Friend the Member for Cannock Chase, I think it is right to single out for praise John Morgan of Cannock Chase district council. As we have heard from my hon. Friend, Mr Morgan’s knowledge of the Chase line is unsurpassed. I am told that he has shown huge dedication over many years in seeking the upgrade he wants to see.

Subject to affordability, the Government support the progressive electrification of the rail network as a way of reducing the cost of running the railways, improving services for passengers and reducing carbon emissions from transport. Electric trains are more reliable, quieter and more comfortable than their diesel equivalents. They are also better for the environment and cheaper to operate. The Government believe it is essential that the cost of running the railways should come down. In March we published plans for achieving major efficiency savings in our Command Paper. We believe that further electrification can assist us in delivering our goal of a more efficient rail network. That is one reason why we are going ahead with significant electrification programmes in the north-west and on the Great Western line.

We accept that there is a positive business case for proposals to extend electrification on the Chase line. I also note the strong local support and the long-running nature of the campaign, as well as the regional support that has been outlined by my hon. Friend the Member for Cannock Chase. I agree with him that considerable benefits could be delivered if it were possible to fund electrification of the line. That would allow more energy-efficient electric services to operate and would remove the existing inefficient and resource-intensive mix of diesel and electric services between Walsall and Birmingham. That could reduce the cost of running the service, which is always an important factor. An added advantage would be the release of the diesel rolling stock used between Birmingham and Rugeley Trent Valley for use elsewhere on the network. Electrifying the Chase line could also provide wider economic benefits, as my hon. Friend rightly identified—for example, by broadening access to labour and goods markets, and by boosting productivity and job creation in the area.

A key factor in considering the case for the further electrification that my hon. Friend wants is the fact that the Chase line is an entry point for trains to the nation’s second city. In recent years the line has become an increasingly important commuter service in and out of Birmingham. The electrification between Walsall and Rugeley could therefore be a way to strengthen peak capacity into Birmingham. Currently, as we have heard, the only electrified route from the west coast main line to Birmingham from the north is the Wolverhampton line. Electrification of the Chase line could offer a second electric route via Walsall from those destinations in the north.

That provides an opportunity for the development of services through Birmingham, Walsall, Stoke-on-Trent, Crewe, Liverpool and elsewhere in the north. It would deliver an electric diversionary route from the west midlands to the north for passenger services from Birmingham New Street and for freight services, relieving the line through Wolverhampton. As well as improving local and regional services, electrification could have a strategic national value.

The benefits of electrification could be considerable and I am clear that this project is a serious contender for funding. The Government are considering how much funding will be available for rail investment in the five-year CP5 period up to 2019 and how it should be allocated between competing priorities. We will announce our decisions on the HLOS 2—high-level output specification 2—statement by the end of July. The case for electrification of the Chase line will be considered as part of that process. I shall ensure that the deliberations and points made in this debate are fed into that process.

The project has been chosen by Centro and the west midlands regional rail forum as their No. 1 electrification priority for the west midlands, and it is supported by the business community and the local enterprise partnership. That local support is something that we shall take into account in our forthcoming decisions on what can go into the next HLOS. As we have heard, reference is made to the project in Network Rail’s initial industry plan, which sets out the options for funding in CP5. I note my hon. Friend’s concerns about the approach to the scheme by Network Rail in the industry plan but, like him, I am pleased that additional work has been undertaken since the plan’s publication further to develop the business case and respond to comments from stakeholders in the west midlands and achieve a clearer understanding of the underlying evidence and facts on what electrification would mean and what it would cost.

[Mr Winnick]

The Minister mentioned stakeholders. I am sure she will bear in mind the point that I made earlier that this has the support of all the Members of Parliament, and there is absolutely no political controversy whatsoever.