Thursday 17th February 2011

(13 years, 10 months ago)

Westminster Hall
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Gavin Shuker Portrait Gavin Shuker (Luton South) (Lab/Co-op)
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Thank you, Mr Owen, for chairing the debate on such an important issue. As a member of the Transport Committee, I would like to thank those who went before me and prepared the report. As someone who commutes by train on a daily basis, this is a matter that is close to my heart, as it will be for my constituents and for all our constituents. Today, I would like to focus on investment plans for railway stations rather than track and carriages, in particular those known as category B stations, such as the one in my constituency of Luton South.

The Transport Committee’s third report “Priorities for investment in the railways” helpfully outlines the current investment needs of our railways. The report sets the discussion in its historical context. Despite the successes of passenger numbers in many places, our railways are sadly still overcrowded, outdated and underinvested. The rapid increase in passenger growth, up by 73% since privatisation, has simply not been matched with sufficient investment, for whatever reason. At the outset here, I would like to challenge the retort that the deficit gives a licence to scrap all prior recommendations. The Committee’s report was published in early 2010, when the challenge of the recession was real to us all. Cuts to investment were anticipated, so the Committee sought to make its recommendations on the basis of key priority needs. The recommendations in the report then are not pipe dreams, but the basic steps needed to bring our railways in line with essential common standards.

The report states:

“Cuts in transport investment are easy to make, but are costly in the long term, undermining future growth prospects and depriving future generations of a lasting legacy of good transport services.”

It concludes:

“Investment in improving transport infrastructure should be based on the long-term needs of the economy and society, not directed by the need for immediate public expenditure savings”.

In fact, the report speaks very highly of the benefits of investing in our railways.

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Albert Owen Portrait Albert Owen (in the Chair)
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Order. Before I call Gavin Shuker, I will just explain that I will call the Front Benchers at about 5.15 pm, as we have an extra 15 minutes from the Division. Four Members are trying to catch my eye, so if the next speakers can consider a time limit of 10 minutes, we will get in everyone who wants to participate in the debate.

Gavin Shuker Portrait Gavin Shuker
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Thank you, Mr Owen.

As I was saying before we were so rudely interrupted by the business in the main Chamber, the Select Committee report concludes:

“Investment in improving transport infrastructure should be based on the long-term needs of the economy and society, not directed by the need for immediate public expenditure savings.”

In fact, the report spoke highly of the benefits of investing in our railways, recognising that enhancements often

“provide good value-for-money”—

what we put in regularly, we get back in increased usage. Targeted investment can have “important economic benefits” for community connection and regeneration, which means that not only the service provider, but our local businesses and communities cash in. The Government desperately need growth, and they must not ignore the potential for economic growth in the improvement of our railways.

Kelvin Hopkins Portrait Kelvin Hopkins
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Like my hon. Friend, I travel from Luton station every day. Does he agree that railway stations are about not only transport facilities but the appearance and the impression given when people arrive in a town? The better a station looks, the more likely it is to encourage people to visit and businesses to stay, because it looks nice. That is a simple thing, but I am certain we need it, and I hope my hon. Friend agrees.

Gavin Shuker Portrait Gavin Shuker
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I absolutely agree with my hon. Friend. Luton station welcomes us both home at the end of a long evening in Parliament, and I only wish that all passengers had the enjoyment of sitting opposite my hon. Friend the Member for Luton North (Kelvin Hopkins) on their return journeys, so that their conversations might be as enlightened as ours often are. He makes a strong point that stations are the gateway to broader communities. Investment in infrastructure, transport infrastructure and stations in particular bring a halo effect.

As we all know, rail is particularly important as a mode of transport for business. In my region, the east of England, eight out of 10 rail journeys are made for business purposes, all by people commuting to work. If we are to support people fully in their ability to get to work, investment in our railways is vital. Eddington argued that

“the rising cost of congestion will waste an extra £22 billion worth of time in England alone by 2025.”

Our transport links, therefore, are a

“key enabler of productivity and competitiveness”—

according to the Select Committee report—and, in short, we have no choice but to invest if we want growth and jobs. Let us not dismiss our future prosperity with a narrow argument made solely in the name of the deficit.

It is also worth noting that investment in construction is one of the silver bullets in Government action to get significant economic growth. The improvement of stations is identified in the report as one of the key improvement projects worthy of consideration in the next control period. Station upgrades are highlighted as beneficial in wider area regeneration. Stations are not simply sheds in which we shelter from the rain, as my hon. Friend the Member for Luton North has said. They are key functional zones and play an important role in the total journey experience and in enabling economic productivity in a wider region.

We all know that first impressions count. I am incredibly proud of the town of Luton—I am, indeed, from what I hope shortly to call the city of Luton. However, I confess that it is not with pride that I welcome visitors at Luton railway station. The station has been assessed as one of the worst stations in the whole of the United Kingdom, measured by equivalent passenger numbers. In the words of my hon. Friend the Member for Luton North, in his Adjournment debate last year:

“It is drab, dreary and depressing.”—[Official Report, 23 March 2010; Vol. 508, c. 63WH.]

It does not do our area justice, and the population of Luton has been complaining about it for long enough.

Julie Hilling Portrait Julie Hilling (Bolton West) (Lab)
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In addition to those remarks, I had the experience of going to Luton many years ago, but I suspect that the station is exactly the same as it was then. Safety is also involved. As a woman, certainly, I felt incredibly unsafe in Luton station, because of the layout and everything else. That is such an important element.

Gavin Shuker Portrait Gavin Shuker
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My hon. Friend has anticipated my next point. We ought to expect certain key standards from major stations. If stations do not live up to them, as in Luton, they require significant investment.

Do not take that judgment from me alone. Luton station is known as a category B railway station—it is the second busiest type of station, a national interchange seeing high levels of passenger traffic. All stations in the UK are categorised, from A, the busiest national hubs, right the way through down to F, which are unstaffed stations. Levels of passenger traffic increase up the categories. Sixty-six stations are classified as category B, accounting for 3% of the total number of stations in England and Wales.

That all seems logical. However, the criteria for category A and category B stations are broadly identical. Each station must witness more than 2 million trips a year and £20 million in annual revenue, meaning that a notoriously busy station such as Clapham Junction can fall into category B and be subject to far lower levels of investment than stations in category A. If we do have a classless society, it certainly is not currently witnessed on our tracks.

The 2009 independent report by Chris Green and Professor Sir Peter Hall, “Better Rail Stations”, highlighted category B stations as the category of station most in need of immediate investment—dire need, one might say. The report concluded that

“the National ‘B’ Interchange stations are not adequately funded to meet the Minimum Standards and represent the biggest ‘gap’ in station consistency.”

It later made a strong point:

“They tend to lie in the shadow of the high-earning ‘A’ stations and are under-invested for their daily role as major transport interchanges.”

Stations such as Luton and Clapham Junction are not receiving the investment they merit for their important roles in our national network. The report highlighted 10 category B stations deemed in need of immediate upgrade work and recommended the creation of a sinking fund to help those stations meet basic minimum standards. The previous Labour Government accepted those proposals, and Network Rail committed £5 million to the project in Luton alone. The rest of that funding was in place, and the people of Luton celebrated that. Retailers began to plan for the better shops and conveniences they could offer, offering additional revenue back into the network from increased rental spaces. However, on 25 June last year, the Government announced that the better stations scheme would be scrapped. Frankly, the cancellation of the programme was an utter sham. Network Rail rolled over far too easily and quickly on a well-considered scheme that was welcomed by many hon. Members. As yet, we have no answers as to how the improvements will now be done.

The Minister will undoubtedly be proud of the settlement her Department secured, which we all agree was far better than expected. However, her Department made a mistake in putting pressure on Network Rail to cave in and damaging regeneration across those 10 key areas, where we could make a real practical difference to stations.

As we look at ways that investment in our railways can be part of wider economic regeneration, let us not overlook our stations. As the “Better Rail Stations” report rightly points out:

“Stations cannot be seen in isolation—they are part of the total journey experience…Stations are deeply entwined with their local community and effectively act as the gateway to both town and railway. They leave passengers with their lasting impressions of both—a dilapidated station is bad business for both town and railway.”

Our category B stations have been left to rot away for far too long as energy has been focused on a handful of shiny new hubs. Those vital interchanges do not satisfy basic standards. The decision to scrap the upgrade scheme was hurried, short-sighted and counter-productive. As we reassess priorities for investment and review the findings of that finely worded report, let us not make the same mistake again.

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Martin Horwood Portrait Martin Horwood (Cheltenham) (LD)
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It is a pleasure to serve under your chairmanship, Mr Owen. I too congratulate the hon. Member for Liverpool, Riverside (Mrs Ellman) on her Committee’s report and on securing this important debate.

It is good that there has been a reasonable degree of consensus, perhaps not entirely on high-speed rail but on the need for investment in the railways in general and the importance of that to the economy, the environment and the country. That is just as well because, given the time scales involved, it would be a disaster if those policies were to be chopped and changed between Administrations.

It is right to give due credit to the previous Secretary of State, Lord Adonis, who planned much of the investment that is now going forward. The present Secretary of State had his eye on the post of Chief Secretary to the Treasury, and may have been a little disappointed not to have secured that position, but every cloud has a silver lining and the Treasury’s loss was certainly our gain—rather, it was the railway’s gain, because he has secured one of the most outstanding settlements, and that is a credit to him and his ministerial team, and to the Government, whose overall commitment to maintaining capital spending in these difficult times means that we have secured most of the investment originally planned for the railways. That includes core funding for control period 4, for the Thameslink upgrade and Crossrail, and for High Speed 2.

It was a little uncharacteristically partisan of the hon. Lady to suggest that there was a deliberate policy to price people off the railways. That is so obviously nonsense and not part of the Government’s strategy that it should not be repeated.

Gavin Shuker Portrait Gavin Shuker
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I want to put on record the fact that I was pleased to receive from the Minister of State the information that, as a result of RPI plus 3%, growth in the railways will be diminished by 4%.

Martin Horwood Portrait Martin Horwood
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Supply and demand on the railways clearly do not work in favour of the customer. If the Government had not taken a realistic approach to fares, as well as to public support for the railways, some of that critical investment in the railway’s future would have been lost. That, too, would in the end have damaged the interests of customers.

It is obviously regrettable that any fares have to rise at all. We all want to see them fall. Indeed, that Liberal Democrat aspiration was included in our manifesto. However, we must recognise that the Labour party has left us with an annual overspend that would have swallowed the Department for Transport’s budget many times over. We have to be realistic about the need to invest in that kind of environment.

The Select Committee made some important points about the security of that investment programme. Some of those programmes have been maintained. The Minister will know that I am going to mention one project that I think she maintains was not agreed but which I consistently maintain had been agreed, which is the redoubling of the Swindon to Kemble line. It was given enormous support by the Welsh Assembly, local councils, Labour MPs from south Wales and Swindon, Tory MPs from the counties between, and Liberal Democrats from Cheltenham, Bristol and Cardiff—and probably Chippenham.

The redoubling of that short stretch of line would have an enormous impact on the reliability of all the routes that serve those areas and constituencies. It would also be important to the resilience of the network in the west of England, particularly in the event of interruptions to cross-Severn services. Once again, I urge the Minister to look down the departmental sofa to see if any pennies can be found to secure that one project. It is a shame, but it is virtually the only railway project that was agreed under the previous Government that is not going forward.

The Select Committee report rightly talked about the value of rail enhancements, including many local projects, and stressed that they were as important as many of the larger projects. The importance of the right decision-making methodology was also mentioned. My hon. Friend the Member for Chippenham (Duncan Hames) made some excellent points about the need for a long-term strategic view and for joined-up planning in that respect. However, environmental concerns now take an even greater part in that methodology.

Passenger experience, too, is important. When it comes to franchise reform, it is important that we do not use only the basic metrics, such as punctuality; we should also consider the quality of passenger experience on some of our railway services. I would nominate leg room as being one of the most important. Passenger experience should play a much greater part not only in the awarding of franchises but in their maintenance and, if necessary, their recall when services and standards fall. It is also important that regional balance is considered. Many Members have made similar points. Some of the specific medium to long-term priorities identified in the report were equally important, and the points were all well made. I am an unashamed supporter of high-speed rail as is the Liberal Democrat party. The time scales involved are quite mind boggling. We can reassure some hon. Members about the investment involved, because it is spread over a long period of time.

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Theresa Villiers Portrait Mrs Villiers
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I am afraid that I really cannot. I do apologise.

We will face severe congestion and overcrowding on those routes in years to come, unless we act now to begin the process of delivering that capacity.

On the alternatives, upgrades of an existing line, even extensive ones, could deliver only half a new line’s capacity benefit and would be more expensive. My hon. Friend the Member for South Northamptonshire asked whether 12-car trains would deliver the equivalent capacity: no, they absolutely would not. The hon. Member for Luton North asked whether new signalling would deliver it, and the answer is the same. We are already introducing new capacity on existing lines, and there comes a point at which incremental changes do not deliver the upgrade needed. Moreover, High Speed 2 will deliver the benefits of capacity released on the existing network, with major benefits for places such as Milton Keynes, Luton, Northampton and Peterborough, and also for freight operators.

I sincerely believe that careful mitigation can address many of the most serious local impacts, and I know that my hon. Friend will continue to fight hard for her constituents, who might be affected by the line. We welcome their involvement in the consultation process on which we are about to embark, to ensure that we get the right answers on high-speed rail and that we listen to the views of people affected by it.

After 20 years of discussion, Crossrail is finally going ahead. I hope that that answers those concerned that High Speed 2 will swallow up all the funding available for rail. The hon. Gentleman complained that the Hitchin flyover might not go ahead as a result of the funding pressure on high-speed rail. It is under way, or will be shortly, as it is in an investment programme to which the Government have committed. We have confirmed that the Thameslink programme will proceed in full, despite anxiety that it might not. Some 1,200 new carriages will be delivered, almost doubling the number of north-south trains through the capital at peak times.

On the Derby factory and the procurement of the Thameslink trains, the hon. Member for Glasgow South tempted me to depart from the EU’s procurement rules. I fear that I would find myself falling foul of the European Communities Act 1972 if I did, so I will not advocate failing to abide by our treaty obligations, but I can assure the House that bids from UK-based operators will be considered carefully and assessed fairly, objectively and equally.

The Government expect an additional 650 carriages in several of our major cities by 2014. We expect services to be strengthened into Leeds, Manchester, Sheffield, Liverpool, Newcastle, Birmingham, Bristol—to answer the concerns of the hon. Member for Chippenham (Duncan Hames)—London Paddington and London Waterloo. In addition, new Thameslink and Crossrail rolling stock will enable the redeployment of hundreds more existing electric carriages, strengthening the case for further electrification of our network. I hope that that responds to the concerns expressed about the quality of rolling stock in the north. The hon. Member for Bolton West (Julie Hilling) rightly raised concerns about the quality of that rolling stock and the notorious Pacer trains. We believe that our programme of new rolling stock will help address those concerns.

As the Chancellor confirmed in his Budget speech, lines between Liverpool, Manchester, Preston and Blackpool will be electrified. The redeployment of electric rolling stock to those routes will in turn free up hundreds of diesel units, which will be available for train operators to lease after 2015. In November, the Secretary of State announced that Network Rail will electrify routes on the Great Western main line from London to Didcot, Oxford and Newbury. We expect to make an announcement shortly on the further electrification of that line. We have decided to press ahead with plans to buy a new fleet of trains to replace most of the high-speed trains operating on the Great Western and east coast lines. We have narrowed down the options to two, and we hope to give the House more information in the near future.

The hon. Member for Luton South and others were concerned about stations. We are continuing with the £150 million national stations improvement programme and the £370 million access for all programme, including £2.3 million to be spent on a scheme at Luton.

Gavin Shuker Portrait Gavin Shuker
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Will the Minister give way?

Theresa Villiers Portrait Mrs Villiers
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I am afraid that I cannot. I have run out of time. Birmingham New Street will go ahead, hopefully delivering economic benefits of £2 billion. Improvements at Reading will address a long-standing bottleneck, benefiting people across the Great Western line.

The Chairman of the Select Committee and others are absolutely right to say that it is crucial to get better value for taxpayers’ and passengers’ funding of the railways. Reforming our railways and reducing their cost is essential. The Chairman of the Select Committee and the hon. Member for Cheltenham (Martin Horwood) rightly expressed concerns about the high cost of Network Rail compared with other operators in Europe. We recognise fully the concerns about rail fares. To answer the shadow Minister’s question, we believe that we should share the benefits of the reduction in railway running costs that we expect the McNulty review to deliver. They will be shared between fare payers and taxpayers. We are also clear that any changes suggested by the McNulty review must protect freight operators’ interests.

There is an important role for open access, as my hon. Friend the Member for Blackpool North and Cleveleys urged me to make clear, although open access is not necessarily his only hope of direct train services between Blackpool and London. No decisions have been made yet, but it is possible that that might form part of franchised operations.

We are working closely on the northern hub. I recognise that there is a lot of support for it. Dealing with the problems identified in the project would be of great benefit to the economy of the north of England. I cannot give any guarantees today, but it must be a strong candidate for funding in the next control period.

Hon. Members have supported a list of projects. On the Swindon-Kemble line, if there were any spare funding down the DFT’s sofa, as the hon. Member for Cheltenham asked, I am sure that Swindon-Kemble would be a good candidate. However, he will appreciate that our rail budgets are fully committed. He made a good point about the improvements to resilience that the project would deliver. The hon. Member for Liverpool, Riverside mentioned the midland main line. There is a strong business case for it, but again, affordability is a concern. I am always happy to talk about Kirkstall Forge, and I look forward to the revised bid, which I believe will be made in September. It is a good scheme with significant benefits, and I hope that one day it will proceed. We will have to see whether it proves affordable, given our budget constraints.

I am grateful for the time allowed me to speak in this debate.