Transport in the North-East

Debate between Guy Opperman and Bridget Phillipson

Wednesday 15th October 2014 Westminster Hall

[Bridget Phillipson (Houghton and Sunderland South) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Caton, and I am grateful for having secured this debate.

The north-east is a wonderful place for us to live, work and do business. However, too many of our constituents are struggling, and central Government are not giving us the support that we need. On so many economic measures, we are falling behind the rest of the country. From May to July 2014, the north-east had the highest UK unemployment rate; it stood at 9.9%, compared with the average of 6.2%. The north-east has some of the lowest-paid workers in the country, and the average salary was nearly £3,000 below the UK average in 2013. We have seen the slowest percentage increase in wage growth of anywhere in the UK. Since 2010, wages in the north-east have fallen by over £1,200 a year in real terms.

This is not because the north-east has less to offer; quite the opposite. We are the only English region with a trade surplus. We have world-class universities and global links through air and sea. It is important, however, that the north-east gets its fair share of funding. The economic challenges we face are tough, and it is clear that we need additional support from Government in tackling them, yet our councils have seen disproportionate cuts to their budgets, with funding shifted to more affluent areas. Improving transport is an important way of addressing some of the problems that we face. Lord Adonis’s review cited the World Bank demonstrating that infrastructure, including transport, is a key element of an enabling environment for economic growth. We can support growth and job creation if we have an efficient public transport system. Jobseekers need to be able to get to interviews and to work, and should not have to spend hours or even their hourly wage doing so. The north-east has the capacity to make a greater contribution to our economic recovery, but we need Government to work with us. Improvement and investment in our transport systems will help to deliver that contribution.

The north-east is a wonderfully diverse place, and my constituency is made up of the urban and the semi-rural—of towns, villages and estates. Given that diversity, the transport needs of constituents differ widely. However, the north-east receives the lowest level of Government funding for transport. Every region deserves excellent transport services, but our needs in the north-east are not reflected in the funding that we receive. Government figures show that public expenditure on transport in the north-east has decreased year on year since 2010. In 2012-13, £554 million was spent on transport in the north-east, compared with over £4.5 billion in London, and 2.9% of overall UK spend is in the north-east, compared with 24% in London.

The 2011 census shows that both London and the north-east have the lowest number of car owners in the country. Both regions are clearly full of people who rely on local transport services to get around, yet both regions do not enjoy the same high level of service. One reason for that is disproportionate funding. The Scottish referendum campaign reinforced a point that many of us have argued for years. We need to ensure that all parts of the United Kingdom benefit from, and contribute to, our economic recovery. Economic growth and value must not depend on London and the south-east. It is right that we continue to push for further investment outside London to grow the economy in a balanced and sustainable way.

Funding is not the only explanation for the difference in services between London and the north-east, however. In London, an accountable transport authority is able to make important decisions on fares and routes and to ensure that the transport needs of passengers and communities are met in the capital. In my constituency, we do not enjoy the benefit of a rail link or light-rail link. Many people are entirely dependent on local bus services, which is why I have been campaigning on the issue since my election. I have heard from many local people that they are concerned about high bus fares, poor timetables, and infrequent services. Older residents tell me how difficult it can be to get to hospital, and that they are cut off and isolated in the evenings as they are unable to leave their homes. That situation simply cannot continue.

Next week, the North East combined authority will decide whether to introduce a quality contract scheme in Tyne and Wear. I am calling on its members to press ahead and make the change that we need. The new system would have routes set by the transport authority, with bus operators bidding to run services in an open competition. Not only would we see real competition for the first time, but we would have a simple fare system with Oyster-style ticketing, under which average annual fare increases would be no more than the retail prices index. I am not opposed to bus operators making a profit, but I do question the excessive profits made by companies such as Stagecoach in the region. I want some of that profit to be reinvested in the region, and to go on subsidising services and ensuring that my constituents can get to work, hospital and their places of training and education.

[Guy Opperman (Hexham) (Con)]

I congratulate the hon. Lady on securing this important debate and endorse her comments about the bus contract. Does she agree that when the contract is negotiated, as it probably will be, it is important that it is not entirely focused on urban areas, and that the regional areas of County Durham and Northumberland are not affected, so that the citizens of west Northumberland or west County Durham have the rural bus services that they need?

[Bridget Phillipson]

I am grateful to the hon. Gentleman for raising an important point that I have sought assurance about. My constituency borders County Durham, and many services that run through it go to and from County Durham. I appreciate that it is an important area that does need addressing, but the benefits not only for Tyne and Wear, but for the wider region will be profound. I hope that the right decision is made.