Transport and Local Infrastructure

Drew Hendry Excerpts

Thursday 19th May 2016 Commons Chamber

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

May I associate the SNP group with the comments made by Secretary of State and the shadow Secretary of State about the EgyptAir incident?

I will focus on three themes in my speech: first, the measures that we in the SNP welcome, at least in their outline descriptions; secondly, the areas in which we think that other options and measures could have been and, indeed, should be incorporated—it is never too late for Ministers to pay heed to and take forward such ideas, so I hope they are listening carefully—and, thirdly, the actions, examples and lessons to be learned if we are to take the steps required to deliver for the people of the nations of the UK.

First, I am sure the Secretary of State will join me in welcoming Fergus Ewing MSP to his new position as Cabinet Secretary for Rural Economy and Connectivity, and Humza Yousaf MSP to his new position as Minister for Transport and the Islands. I want to put on record my thanks to the former Cabinet Secretary Keith Brown MSP and the former Minister Derek Mackay for their work, some of which I will mention. They are both now performing new roles in the Scottish Government Cabinet, and I am sure that UK Government Ministers agree that they worked positively with them during their time in office.

[Mr McLoughlin]

May I echo what the hon. Gentleman has said? I heard about the new appointments just before I came into the Chamber. I very much hope that we can work together positively on a number of issues that affect both Scotland and the rest of the United Kingdom.

[Drew Hendry]

I am sure that where there is a progressive movement, that will be the case.

I want to start with those areas on which there is common purpose, and there are some innovative transport measures—or at least promises of them. That said, if such measures are to gain support, the rhetoric will need to be followed by an inclusive vision that benefits all the nations of the UK. An area where that is not yet clear is investment in further research on autonomous vehicles. Obviously, safety implications and their deployment will need to be considered.

Such investment is welcome, but it will be meaningless to most of the UK nations if it is not supported by the necessary investment and innovation to deliver a truly universal mobile communications network. Let us not yet again take an approach through which benefits are seen only in some urban areas of the UK. Future network licensing deals should include a requirement, in the conditions of the contracts, for rural areas to be prioritised. These areas all across the nations of the UK have suffered for decades because of ill-thought strategy and, indeed, ignorance about the needs of those outside the largest cities.

Linked closely to that is the need for broadband infrastructure. The SNP has campaigned for a universal service obligation for broadband, so we are pleased that that will be included in the digital economy Bill. The Scottish Government are committed to extending superfast broadband to 100% of premises—all businesses and homes. When I recently asked the Leader of the House in the Chamber to match that ambition, he said that he did not know how it could be done. I hope that the UK Government have, in the past few weeks, figured this out and that they will roll out action to match their words. If they do, it will indeed be positive news.

Putting the UK National Infrastructure Commission on a statutory basis is also welcome, but only if it looks beyond the old horizons and prioritises infrastructure for all the nations of the UK. To achieve that, we need more ambition on the development and deployment of electric vehicle infrastructure, so I agree with the remarks of the hon. Member for Nottingham South (Lilian Greenwood) about that. That and investment in autonomous vehicles must go hand in hand. It will be good if that happens, but let us see the detail because, once again, the Government should demonstrate that that matches the ambition of what they are saying.

We are entering a point in our development where, counter-intuitively, roads might actually provide another vision for the future of green transport, and I would like such an opportunity to be explored further by the UK Government. On green travel—indeed, on greener travel measures in general—we are seeking more ambition from the UK Government.

On active travel, we welcome the fact that the recent Budget did not remove salary sacrifice schemes—that will aid the promotion of cycling—but there is a huge opportunity for further investment in cycling, which would lead to healthier outcomes for people and healthy economic benefits. I urge Ministers to reconsider the lack of a strategic UK Government commitment to accelerating cycling infrastructure. Where is the promised five-year strategy and why, given the stated objectives in the cycling and walking investment strategy, is that not a headline at this time? We need greater vision, greater urgency and proof that words are equal to a true commitment.

The SNP Scottish Government are investing £l billion annually in public transport and other sustainable transport options to encourage people to get out of their cars. Since 2011, Scotland has built 190 km of cycling and walking paths to match the commitment to healthier lives for the people of Scotland, where the number of people cycling has increased by about a third since 2003.

When the Secretary of State mentioned HS2, he said, if I am quoting him correctly, that he looks forward to it going to Birmingham, Sheffield, Leeds and Manchester. Ominously, however, he omitted Scotland from that list. The Scottish Government have committed to working in partnership with the UK Government on HS2, but the UK Government must demonstrate their commitment. Will he now confirm that that is correct and commit to the line going to Scotland, with the full investment needed?

HS2 is not the only possibility for cross-border rail development. The Borders rail link—a programme delivered on time and under budget by the Scottish Government—is now open for investigation for an extension all the way to Carlisle. The Scottish Government have said that they will support a feasibility study. Will the UK Government match that ambition by agreeing to consider whether that can be realised for the people on the borders? I hope so.

On investment in green measures, there is a future for green travel for surface users—through active travel and electric developments in relation to road and rail, especially if powered by renewable sources—but there remains no vision from the UK Government on alternative fuels for air travel. Once again, the UK is stuck in the vapour trail on this issue. Oslo has already become the world’s first airport to offer sustainable biofuels to all airlines—Lufthansa, SAS and KLM have already signed up to that—but there is no such commitment in the UK. The UK Government can change that, and I again urge Ministers to include aviation in the renewable transport fuels obligation.

We welcome the UK Government’s commitment to do more work on a UK airspace strategy. Such a commitment is overdue, and we ask that action in this area is accelerated to address the deficit of more than 40 years. If we continue to ignore that, there will be an increased risk of delays, higher carbon use and a damaging impact on commerce. Tackling this, and coming into line with the European Commission’s single European sky initiative, offers an opportunity to boost the UK economy and benefit all the UK nations.

Speaking of things up in the air, although nobody will be shocked by the lack of a commitment to deciding on airport expansion, it remains the jumbo in the room. I know that our frustration is actually shared by Government Ministers. I am certain that, freed from internal pressures, they would have made a decision by now, but they remain paralysed by orders arising from internal party politics.

Madam Deputy Speaker, you were in the Chair on the occasion when I overran the two minutes for my response to a statement on yet another delay on airport expansion, because I was trying to list the broken promises in relation to the many dates by which Ministers and, indeed, the Prime Minister had promised there would be a full and final decision. Such promises have been broken over and over, but when someone hears that long catalogue of missed opportunities for leadership, the frustration and anger caused by these delays immediately becomes understandable. You will be glad to know that, rather than repeat that exercise, I will just quote the Secretary of State’s words from way back in October 2012. He said:

“in the south east the runways are filling up. And the jets are circling in our skies. That’s hitting our prosperity. It’s bad for the environment. It’s putting off investors. It’s costing jobs. And it’s holding Britain back.”

He was right, but that was nearly five years ago. In spite of those sage words, the runways are now fuller, more jets are circling, the environment continues to be damaged and investors have indeed been put off. Who knows how many jobs that has cost?

[Mr McLoughlin]

Given that the hon. Gentleman has now had time to study the Davies report and that he is so clear in his own mind, will he tell us which option he prefers?

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[Drew Hendry]

I would be delighted if the Secretary of State and the UK Government wanted to hand control of UK infrastructure development to the SNP, because as with the Borders rail link and the Queensferry crossing, we deliver things on time and under budget. By all means, give us the decision and we will make the choice.

Let me come on to why the decision is important for Scotland. More than 90% of international visitors to Scotland travel by air. More than a third use Heathrow as a hub and, if that is combined with Gatwick, I reckon that around half our international visitors travel through the south-east. It is not just about tourism; it is the £5 billion a year whisky industry and the £500 million salmon industry, and other shellfish and exports need to get to international markets. All the time the decision is pushed out and fudged, it harms the Scottish economy.

Another opportunity is open to the UK Government to assist not just Scotland but many other parts of the UK by bringing forward a commitment for public service obligations for linking regional airports point to point with the London hubs. That straightforward measure would point to a much more enlightened and inclusive air transport strategy. Market forces alone cannot provide fairness across all the regions and nations of the UK, and a strategic choice is needed.

We also support the establishment of the UK spaceport, which is an exciting opportunity.

[Dr Philippa Whitford (Central Ayrshire) (SNP)]

On my behalf, will my hon. Friend ask the Secretary of State to clarify his comments about this issue? I wanted to intervene on him, but unfortunately he did not hear me. He said that it would be up to market forces to decide the location of the spaceport. We have had discussions in this place about awarding a single licence to a UK spaceport, but multiple licences would be needed, because every vehicle has to be licensed. I hope that the Secretary of State will clarify whether he will let the market make the decision and if it will be possible to have multiple spaceports?

[Drew Hendry]

That is a very important point, and I am delighted to underline it and to ask the Secretary of State to respond. We see this development as having great possibilities and we would anticipate that, when making their decision, the UK Government will fully appreciate the excellent potential sites in Scotland. We encourage the UK Government to work with the Scottish Government, Scottish local authorities and our public agencies to realise this potential in Scotland.

We would also welcome more detail on developing a genuine aerospace strategy, which must include supporting the industry to address the skills gap in the engineering sector. I urge Ministers to consider some of the work on gender-balance issues. Not long ago in the Chamber I quoted Bridget Day, the deputy director of the national aerospace programme with more than 40 years’ experience. She has highlighted her struggles as a woman in the industry. Only 11% of engineers are women, even though more than 20% of graduates are women. That is the lowest percentage of female employment in the sector across Europe.

There are also apprentice opportunities in shipping—transport should include references to shipping. The Scottish Government worked tirelessly, as they did on the Scottish steel issue, to save the iconic Ferguson shipyard, which is vital to providing vessels and employment for the future. Of course, this place has decided to delay the BAE order for the Govan and Scotstoun yards with the review of shipbuilding. That delay threatens jobs in Scotland and I hope that Ministers will take that message back to the Cabinet and get the Treasury to release the brakes on that development.

On the subject of shipping, we also have an opportunity to put right the dangerous deficit that has been allowed to continue around the seas of the UK, nowhere more strikingly than on the west coast of Scotland. My right hon. Friend the Member for Moray (Angus Robertson) has highlighted on many occasions the dangers and folly of removing maritime patrol aircraft from Scotland, but when the removal of one of Scotland’s two emergency towing vessels and the ongoing uncertainty over the remaining tug are added to that, it is easy to see why Ministers are facing calls from every quarter to commit to permanently securing the remaining vessel and reinstating the second. Those vessels, if deployed sensibly, can assist drifting ships, therefore preventing them from running aground, and head off disaster, protecting human lives and fragile environments. They are called emergency towing vessels for a simple reason: they are available for emergencies, such as when they were called in to rescue one of the UK’s nuclear submarines that had run aground off Skye. Their retention and reinstatement has been strongly urged by everyone who understands the risks from the seas around Scotland—the marine industry, marine unions, including Nautilus, every highlands and islands MP and MSP, local authorities and agencies. They have all pointed out that we cannot wait for a disaster to happen before there is a reaction, so protection is needed so that a disaster can be prevented.

The nations of the UK need not just warm words of support for good ideas, but a connectivity strategy: a plan for air; a plan for technology; a plan for suitable sustainable fuels; a plan for marine operations; a plan for health and wellbeing; a plan for tourism; a plan for trade and enterprise; and a plan for productivity. We must see more and better work from the UK Government on those fronts.

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[Drew Hendry]

I am grateful to the hon. Gentleman for his earlier comments. On road safety, does he agree that if one of the driving principles behind developing driverless technology in the UK is increased safety, it should apply across the length and breadth of the nations of the UK, not just in urban areas?

[Jim Fitzpatrick]

The hon. Gentleman is correct. Most people who listen to media reports might think, “There’s nobody in charge of driverless vehicles, so they’re more dangerous and riskier.” The reality, however, is that the technology now exists for automatic stop, electronic stability control and anti-skid brakes, which make the vehicles much safer. It is the human element—people who are on their mobile phones, who have been drinking or taking drugs, who are not wearing seatbelts, or who are speeding—that causes most crashes and deaths. If we take out the human element, we will see the number of road crashes tumble and a fall in deaths and serious injury. The hon. Gentleman is right to say that the proposal should be extended right across the piece.

My only other point on transport relates to air quality. Transport contributes to more than 20% of emissions. With the advent of new technology, there is real scope to reduce that figure. I hope that the Government will work with the new Mayor of London, Sadiq Khan, on his commitment to address the issue more seriously than it has been for years.

On housing, the biggest issue in my constituency, London and the vast majority of the country is the need to build new homes. The Housing and Planning Minister has acknowledged that I do not think that the Housing and Planning Act 2016 will help. Selling off the most expensive properties in Tower Hamlets will not help our housing crisis, because it is the bigger homes that will be sold off and that will affect larger families. The imposition of market rents in and around Canary Wharf means that local people will not be able to afford them. On the sell-off of housing association homes, we need local replacements. A percentage of all new developments need to be affordable homes.

London needs people working in the city. For example, how do we expect Palace of Westminster staff to be able to get here 24/7, from all parts of London and the south-east, whether they be security officers, police officers, cooks, cleaners or involved in other duties, if they do not have somewhere affordable to stay in London? We are pricing them out of the market and making it more difficult for them to get in. London’s economic infrastructure will be negatively affected if we do not make sure that affordable housing is available.

Finally on housing, I want to refer to the speech that the hon. Member for Worthing West made on leasehold reform yesterday, which can be found at columns 71 to 75 of Hansard. I thank the Housing and Planning Minister for his interest in the matter. We have had several meetings with him and his civil servants on leasehold reform. The hon. Member for Worthing West has also been to No. 10. I hope we can make progress on leasehold reform, including the right to buy, retirement homes and private sector sales, which represent the vast majority of new properties. The sector is raising its own standards, but most of us believe that it requires regulation and statutory reform. The Leasehold Knowledge Partnership is working very hard to help people who are in a very difficult situation.

I am disappointed that there is nothing in the Queen’s Speech on banning the use of wild animals in circuses. On Tuesday I attended a photocall at No. 10 with kids from Devonshire Road Primary School in Bolton. This is a Government commitment, and the Prime Minister has made a personal commitment, that it will be in the legislative programme by 2020. I am sure that it will come, but it is disappointing that it is not happening now. It is not a major issue in general national politics, but it affects a lot of people around the country.

Business rate retention for local authorities is great news for my constituency in Tower Hamlets. We are on the City of London fringe, and Canary Wharf is at the heart of my constituency. Holding on to those business rates will result in us moving from being one of poorest to one of the richest boroughs in the country. Obviously, the Government will have a mechanism to equalise, which has always been the case. I am not clear on how that is going to work, so I look forward to hearing the Minister explain it later, if he has time.

During business questions this morning, the shadow Leader of the House, my hon. Friend the Member for Rhondda (Chris Bryant), said that he welcomed the National Citizen Service being put on a statutory footing, but youth services have been cut right across the piece. There are some great organisations in my constituency, including 2nd East London scout group, 31 Tower Hamlets air cadet training corps, the Marine Society and Sea Cadets, and the Prince’s Trust, which has recently moved its London and south-east headquarters to Mile End. They are doing fantastic work and it is equally welcome to see an adult service being put on a statutory basis. Organisations such as Keep Britain Tidy will be very much in support of that.

On local government and planning, when we passed the Planning Act 2008, the shadow Minister, my right hon. Friend the Member for Wentworth and Dearne (John Healey), who is on the Front Bench and might speak later, led on the Bill for the Labour Government. We introduced an independent planning commission for nationally significant infrastructure projects. One of the first things the coalition did was repeal that Act, and five years later the Conservatives recognise that a fast-track planning procedure is needed for nationally significant infrastructure.

There is a real conflict for local councils that have the prospect of shale extraction and fracking. Notwithstanding the clamour from the environmental movement and the Greens for shale extraction not to be proceeded with, I think the vast majority of people in the country would much rather that we use our own natural resources than import gas from the US, Qatar or Russia. Shale extraction makes much more sense for our economic security, but the Government have to address the conflict between local communities being panicked and scaremongered into opposing shale extraction applications and the need for that national industry to be developed.

The measures on counter-extremism, anti-terrorism and security are all welcome. We are living in much more dangerous times, and getting the right balance between civil liberties and the opportunity for the security and intelligence forces to protect us is a real challenge. When the three girls from Bethnal Green went to Syria, people asked why the security forces and the police had not intervened, but exactly the same people objected when the Government tried to improve security, intelligence gathering and interception. I supported identity cards under the Labour Government. I thought it was wrong that we did not proceed with them, and it is wrong that the current Government are not doing so. They would be a simple mechanism and a positive step forward at a time when we are all carrying ID in the shape of credit cards, contactless payments cards or whatever.

I am grateful for the opportunity to contribute to the debate, Madam Deputy Speaker.

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[Roger Mullin]

Absolutely. That adds to my point about how this is about not merely the simple issue of travel, but people’s health and wellbeing and their ability to engage with their friends, to engage in the community and to contribute more to the life of that community.

[Drew Hendry]

It is worth underlining the mental health benefits of concessionary travel. The scourge of loneliness comes with an ageing population and more people being isolated, and the ability to get out and travel on the bus network and to socialise is a real boon. Does my hon. Friend agree that that is something we should foster and encourage to reduce that scourge of loneliness?

[Roger Mullin]

I entirely agree with my hon. Friend. Indeed, perhaps the Government could consider making their disabled companion programme for those on disability benefits a national programme, not something available only on a regional basis. That would bring it into line with what is happening Scotland. It is of great benefit to people who otherwise face considerable disadvantages.

I am aware of the time, but I wish to mention something that concerns me greatly about the Government’s infrastructure plans. I have to say that the way in which some of them have been undertaken leaves a lot to be desired, particularly when it comes to how some so-called major national infrastructure projects are being funded and managed. I wish to highlight what some might consider to be the financial shenanigans that are going on in relation to the Thames Tideway Tunnel project. The funding model of this rather controversial multi-billion pound project comprises conventional equity—made up of about 40% pure equity and 60% subordinated debt with interest tax deductible—and medium-term bank debt to be refinanced with bonds issued over the six-year build period. However, if market conditions prevent bonds being issued, the UK Government provide a £500 million loan facility as contingent support. The liability associated with the £500 million support is unrecorded in UK Government accounts. This Parliament has never been informed of the details of this type of contingent support. It is a dodge. It exposes customers, and it should be thoroughly examined by this House. We need to have proper methods of financial management of major infrastructure projects.

My hon. Friend the Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) mentioned the Queensferry Crossing—the new bridge being built across the Forth—which is very close to my constituency. Using the new Scottish Futures Trust, which was developed when we got rid of the horrendous private finance initiative, this major new bridge is coming in quicker than planned and £1 billion under budget. How many other major infrastructure projects in the UK have come in quicker than planned and significantly under budget? The answer is very few. Perhaps we should look again at the Scottish Futures Trust model of investment.

We face many transportation and infrastructure challenges in this country, but, above all, we face major productivity and economic challenges. They should have all featured much more strongly in this Queen’s Speech. We need to focus on them not just for our benefit but for that of future generations.