Oral Answers to Questions

Huw Merriman Excerpts

Thursday 11th October 2018 Commons Chamber

[Jesse Norman]

As the hon. Gentleman will be aware, we are already investing quite heavily in junctions 6 to 8 on the M56. Decisions about the second stage of the road investment strategy will be announced next year.

[Huw Merriman (Bexhill and Battle) (Con)]

On behalf of the huge number of passengers who were delayed getting into London today, may I invite the rail Minister to give an enormous, if perhaps metaphorical, kick up the backside to the train operators, which should tell us not to get off trains when the tube station there is closed, to Network Rail, which should tell us the same thing as we walk through the station, and to Transport for London for perhaps not letting those organisations know in the first place? It is not good enough when disabled people have to walk to one part of a station only to find it is closed, and then to get back on their train and have to be told by other passengers not to do so. We pay for the service; we should not have to run it.

[Joseph Johnson]

There is clearly an important lesson to be learned regarding communication between the operating companies and passengers, and I will ensure that the Department gives it careful attention.

Rail Review: Terms of Reference

Huw Merriman Excerpts

Thursday 11th October 2018 Commons Chamber

[Chris Grayling]

In all the conversations that I have had with people across the rail industry, I have met very few who disagree with my analysis about the need to bring back together the operation of the track and the train. What comes out of this review has to deliver a more joined-up railway.

[Huw Merriman (Bexhill and Battle) (Con)]

I welcome the Secretary of State’s approach. In all the times that he has appeared before the Transport Committee, he has always been open to change and improvements. With that in mind, may I ask him to take into account the great future improvements that can be made from technology? The digital railway will add a third extra capacity without the need to build more track, but that will only occur if the unions and the workforce embrace change and do not use it as an opportunity to go on strike, as I have seen in the Southern network. Strikes have been the single biggest issue, not the other factors that hon. Members mention.

[Chris Grayling]

My hon. Friend is absolutely right. It is disappointing to see the RMT continuing to strike when none of its members face the loss of their jobs or a loss of money.

Road Safety (Schools)

Huw Merriman Excerpts

Thursday 13th September 2018 Westminster Hall

[Huw Merriman (Bexhill and Battle) (Con)]

Thank you for calling me to speak in this important debate, Mr Evans. I thank the hon. Member for Liverpool, West Derby (Stephen Twigg) for initiating it and for the way he spoke. He set out some appalling reasons why this matter is important, and why it is important for the Government to take more action—to assess what they can do to improve road safety around schools and give a lead to local authorities. The local authority aspect of the matter is what I want to talk about.

It would be wrong of me not to mention my heartfelt sympathy for the family of Bobby Colleran, who are seated behind me, in the Public Gallery. Any parent will be aware of how horrifying it is to think about one of their children no longer being with them. It is unimaginable, and I can only pay tribute to the Colleran family for the way they put their energies and focus into making things better for other parents, and for their dignity. They are lucky to have the hon. Member for Liverpool, West Derby as their MP, campaigning on their behalf.

I was moved to attend the debate because I serve a rural constituency of 200 square miles with many small primary schools. Naturally, they are on roads, and as those roads have got busier, the safety situation has got worse. For example, Punnetts Town Community Primary School, a few miles from where I live, is on a busy road, on the left-hand side as one drives through. On the right-hand side are the car park, sports facilities and other amenities the children go to, such as forest school. To get from drop-off, or to use the amenities during the day, which is good for their health and fitness, the children have to cross a busy road. There is no crossing, and there are no lights. There is nothing; the children just have to cross when it is safe to do so on a busy, straight road. It is not safe to do that.

My frustration, and the point on which I look to the Government to lead local authorities to do more, is about the fact that, while there is a 30 mph zone, which of course tends to be flouted, and a flashing sign indicating a speed limit of 30 mph as drivers come in, we are told by East Sussex County Council that it will cost £120,000 to deliver a puffin crossing. I have put some research together, and I could do that work a lot cheaper. The difficulty is that local authorities, perhaps with their procurement on a smaller, localised basis, cannot buy equipment at as good a cost as they could if all local authorities acted together to cram the prices down. There is also a tendency to say, “It will cost this amount,” and to decide that, therefore, it is a question of spending money the council does not have or doing nothing. Many of the costs in the project I have outlined would relate to moving some signage. The parents would be happy with the signage as it is, if they could get the puffin crossing. We tend to go to the platinum standard, whereas the parents would find the gold standard absolutely adequate.

Another difficulty is that there is no longer a lollipop lady, because she decided it was not safe enough. My idea was to monetise 10 years’ worth of lollipop salaries and put them towards the cost of the puffin crossing. Then we would not need the lollipop lady. However, that type of thinking does not seem to work in local authorities. I recognise that the Government do not control the issue, which is devolved to local authorities—we want local authorities to keep making those decisions—but there must be a better way to lead or advise them on procurement. To some extent, there should also be a model in which they are told, “You have to provide this.” It should not be enough to say, “It is too expensive and we can’t afford it, so there will be nothing.” I therefore pay tribute to one of the parents, Alice Conyers-Silverthorn, and the councillors, who have together rallied to try to make the change happen.

I want to champion those who go into schools to teach safety awareness, such as by helping with artwork to be displayed by the road, as happened in the village of Five Ashes. Susan King, a resident of Cross in Hand, goes into a school to give awards to pupils for their work. She also tries to encourage parents not to bring their children by car in the first place. I am afraid that parents’ parking often increases the dangers to their own children or, more often, their children’s fellow pupils.

The ideas behind the Bobby zone are superb, because they effectively ring-fence an area that is safe. However, that will not work in isolation, because the issue of where to park then arises. So I want every primary school in the country to have a walking bus. It should be a statutory requirement. Walking is good for health, and it would mean a school would have one central point where everyone would be dropped off and where it would be safer. Cars would then not congregate around the school gates. That should be built in.

I should like more children to walk and cycle. Doing that is a bit of a double-edged sword at the moment. It is not safe to walk and cycle, so everyone drives cars, but that is what leads to its not being safe in the first place. On 10 October, it is Walk to School Day, when all pupils are encouraged to walk to school. I do not know about when you were growing up, Mr Evans, but there was a cycle ride and a walk for me. I walked to school four times a day, because I went home for lunch. Understandably, parents are now more concerned about safety, but I would tell parents in my constituency to let their children go a little more—let them walk. If the Government can make changes that make walking safer, parents, in return, could let things go. When we consider such things as type 2 diabetes, there is more need than ever to get children walking and cycling, to be fit and well.

My final point is about police enforcement. I have written to the chief constable of Sussex police. When I knock on doors in villages, speeding tends to be the issue people raise more than anything, including Brexit. It is all a question of how they can keep their community and environment safe. Part of the issue is of course engineering, but another part is enforcement. A welcome 250 extra police officers are now coming to East Sussex, and I should like them to be allocated for at least part of their time to road enforcement, stopping those who speed, making examples of them and thus lessening the chance of its happening again.

The Minister takes great care and attention with this matter. He met a group of my constituents who came to talk about speeding on the A21, which is one of the busiest trunk roads and has a primary school on it. That is our only school with a 20 mph zone; but another one, Vinehall School, further down, does not have one. I should like more roads to be routed away from schools. If that means more housing to build the roads, it would fix two issues.

I am a member of the Transport Committee, and it is about to consider local roads. What I have heard in the debate about the Colleran family, and what they have been through, will inspire me to try to broaden the subject to include road safety around schools.

--- Later in debate ---

[Jesse Norman]

It is interesting the hon. Gentleman should say that. As a former London MP, he will be extremely familiar with this matter. Of course, the London experience is part of the data that officials are being asked to consider as they frame future proposals.

On parking around schools, under section 122 of the Road Traffic Regulation Act 1984 local authorities have a statutory responsibility to provide appropriate traffic management schemes for local roads. They are free to make decisions about the streets under their care, provided they take account of the relevant legislation. Local authorities can put in place “school keep clear” markings that are legally enforceable when used in conjunction with an upright road sign and a traffic regulation order. Local authorities with civil parking enforcement powers can enforce those restrictions by issuing penalty charge notices to any vehicles found parked in contravention of them. Although there are certain restrictions on the use of CCTV by local authorities for parking enforcement, the Department has ensured that CCTV can continue to be used to enforce parking outside schools to protect children.

The hon. Member for Liverpool, West Derby raised the question of whether every school should have a Bobby zone. Bobby zones are something I was unfamiliar with until now, so it is hard for me to comment directly on that. What I can say is that all schools can have them under existing law. Local authorities have all the legal powers required to create Bobby zones, and Liverpool is a great example of that. It has those powers, and has applied them to create a cluster of local regulation, which has created that protective effect. That possibility is in play already.

[Huw Merriman]

I thank the Minister for mentioning kerbside parking—I should have done so, as it is hugely important. He talks about local authorities having the powers. In my constituency I have two of the 15 local authorities that do not have the powers because they have not brought in civil parking enforcement. Is there something that the Government could do to try to incentivise the handing over of the power from the police, who of course do not have the resources, to local authorities, so I will have the same rights in my constituency that other authorities do around the country?

[Jesse Norman]

This is, of course, a matter for local authorities, and my hon. Friend is right to raise it. Some authorities have those powers, and some do not. Colleagues across the House have expressed concerns about that, and we are looking at it. To the extent that traffic regulation orders in relation to pavement parking may require some kind of reform, there may be scope to extend such reform to cover the kinds of aspects he describes.

One of the key issues that many colleagues across the House have discussed is 20 mph speed limits. It is important for the House to be aware that over the last few years we have introduced several new measures that can help local authorities to improve safety near schools. Local authorities have the power to introduce all-day 20 mph speed limits, and to introduce speed limits that apply only at certain times of day. Schools that are located on through roads, for example, where there may be conflicting desires on the part of local government, can have 20 mph zones imposed for periods of time, precisely to protect children at the beginning and end of the school day. Those limits can be indicated with variable message signs. Alternatively, authorities can now introduce an advisory part-time 20 mph limit using traffic signs with flashing school warning lights. They were prescribed in 2016 and can be a more cost-effective solution, as well as reducing sign clutter.

Some offences—this point has been acknowledged in the debate—are better tackled by training than punishment. Colleagues will be aware that earlier this year we commissioned some evaluation of the effectiveness of speed awareness training as an alternative to fines and penalty points for low-level speeding offences. That evaluation was broadly positive, and the national speed awareness course is now offered, as colleagues will know, by most police forces in England and Wales. We are also improving training for new drivers outside local roads by allowing learners to go on motorways with an approved driving instructor. Those are all part of trying to get safer drivers. We have new materials in progress to develop and improve learners’ awareness of hazards in different weather and lighting conditions.

On crossings, the new parallel crossing has been developed to enable pedestrians and cyclists to cross where a signal-controlled crossing is not justified. The now-ubiquitous pedestrian countdown units can be used to give extra information, allowing children to understand how much time they have left to cross the road. That is being supplemented by the Department with updated guidance. Chapter 6 of the “Traffic Signs Manual” will bring together and update existing advice on designing traffic signals and provide new guidance, which should be helpful.

National Policy Statement: Airports

Huw Merriman Excerpts

Monday 25th June 2018 Commons Chamber

[Huw Merriman (Bexhill and Battle) (Con)]

Behind the inquiry and report of the Transport Committee on the national policy statement on airports was our genuine desire to assist MPs when reaching their decision tonight. I have always been struck by the similarity of the NPS designation to the manner in which a local planning authority makes a local plan before developers promote site-specific applications for planning permission. Even if the NPS gains support this evening, Heathrow Airport Ltd will have to submit a development consent order for approval.

The Committee’s report included several recommendations that, in hindsight, would have been better addressed through the design process rather than the NPS. The Committee drew the following conclusions. We recommended that both Houses of Parliament allow the planning process to move to the next stage by approving the final NPS, provided that the concerns that we identified were addressed by the Government in the final NPS that it laid before Parliament. The issue is whether the 25 recommendations that the Committee made have been addressed. The Government maintained in their response to our report that they have largely done so, stating:

“The Government has welcomed and acted upon 24 of those recommendations, disagreeing with only one.”

Reviewing the Government response, the Committee Clerk found that the 24 recommendations were not to be found in the final NPS. I believe that the Government have taken note of our 24 recommendations, and taken action, but not necessarily within the NPS. In many cases, the Government do not believe that the outline planning NPS process is the right avenue for design-specific recommendations. They believe that the right place is in the development consent order or at a later juncture. As a result, the Government maintain that they have fully implemented or exceeded the action that we proposed; partially implemented the recommendation by updating the NPS or by publishing additional information; confirmed that proposals would be addressed later in the planning process; confirmed that action will be taken through other mechanisms or regulators; or agreed with the issue raised but disagreed that the NPS was the correct mechanism, believing that to be the development consent order process.

The Transport Committee has, in the last three parliamentary terms, been a supporter of Heathrow expansion rather than the alternatives. Our report supported expansion, provided that our concerns were addressed, and I believe that the Government have done so. This procedural difference in opinion is not going to stop me voting for Heathrow expansion this evening. Britain’s airport capacity is scheduled to run out by 2030. It was clear from our evidence sessions with neutral airlines that support all airports that we had to proceed, and that Heathrow was the only option on the table.

Confidence in the Secretary of State for Transport

Huw Merriman Excerpts

Tuesday 19th June 2018 Commons Chamber

[Andy McDonald]

I agree entirely. The Government seem to want to have control and intervene, but they do not want to take responsibility. GTR should have been stripped of its contract years ago for running the worst rail service in modern times. The company has repeatedly been found in breach of its contract as well as overseeing toxic industrial relations and poor customer service. Had the Government heeded Labour’s call to strip the company of its franchise, the recent disruption could have been avoided.

[Huw Merriman (Bexhill and Battle) (Con)]

rose—

[Andy McDonald]

I will give way to the hon. Gentleman.

[Huw Merriman]

I thank the hon. Gentleman—he is always kind and courteous with his time. A month ago, I believe that he said at the Dispatch Box that the rail professionals should be allowed to get on and run the industry, but in this instance he is being critical of the Secretary of State for not intervening and stopping that very eventuality occurring. I would like some clarification.

[Andy McDonald]

I will come on to that. As an excellent member of the Select Committee on Transport, the hon. Gentleman knows that the DFT sits on those bodies—it has a presence—yet it did nothing when it was given those alarms or warnings that he knows all about.

--- Later in debate ---

[Alan Brown]

Yes, I do. The Secretary of State says that there was a parent company guarantee of £165 million for VTEC, which is a lot of money, but if the parent company is picking up other money in franchises, including the direct award of the west coast main line, it is not actually losing that money. It should be penalised properly, and I agree with the hon. Gentleman that it should not be able to bid for other franchises. Its ability to bid for the east coast main line partnership has still not been ruled out.

The Secretary of State also justifies the predicament of the parent company by saying that it “got its sums wrong.” I remind him again that it is his Department that got its sums wrong when it carried out its due diligence and assessment. The Government are lucky that one of the other franchise bidders is not seeking redress from them, because they clearly got it wrong, and got the whole process wrong.

[Huw Merriman]

Will the hon. Gentleman bear in mind that private rail operators in Britain are paying money into the Exchequer, whereas in France, 20% of the running costs come from the Government? When it comes to sums, which other areas of public spending would he have cut in order to pay for the things that he is talking about?

[Alan Brown]

I do not think that the hon. Gentleman listened to the point that I made about the subsidy that is paid to the rail franchise companies. It is a circular process, which makes it more complicated and more expensive, because of the number of cost consultants involved, taking money from one direction and paying money in another direction, and then blaming Network Rail. All that money can then circulate, and there are still net subsidies for those companies, although they pay track rental fees.

As I have said before, Richard Branson came out fighting. He blamed Network Rail for the overruns, but we have heard that Network Rail was not really at fault. The Secretary of State should be more robust in attacking VTEC. Letting it walk away owing that money undermines his position.

In previous incarnations, the east coast main line service has proved that public ownership can work. When it was last in public ownership, it paid the track rental fees and made a nominal profit, which went straight to the taxpayer. That model can work, and it should be used again in future. The Secretary of State ought to consider that.

Also on this Transport Secretary’s watch has been the Southern rail shambles. He did not do enough to step in. When I highlighted some of Southern’s failings on another occasion, he intervened and said that he was not the Transport Secretary who had been responsible for the allocation of the franchise. That completely missed the point: he was simply saying, “It’s not my fault, guv.”

--- Later in debate ---

[Huw Merriman (Bexhill and Battle) (Con)]

Madam Deputy Speaker, I am terribly sorry for stepping out of the Chamber earlier than I should have done. It should be me who steps down. I am grateful for being able to say a few words this afternoon, not least because I am a member of the Transport Committee.

I wanted to speak on this subject because I think there has been too much chopping and changing in the entire industry over the years. I recognise what the Opposition motion aims to deliver, but I ask them whether any more changes in leadership would actually deliver the stability that is required. I am not trying to make an argument that might play well; I absolutely mean it.

I have worked with the chief executive of GTR, Charles Horton, over a number of years, and I have tried to work between him and the leader of the RMT, Mick Cash, with whom I have a good working relationship, to try to find a way through the Southern industrial dispute. Charles Horton has now stepped down, which I know many people will celebrate, but, frankly, this is a man with years and years of rail experience who truly cares about putting things right. I am sorry because, frankly, I would rather see people stay in post to turn things around. If there are areas of responsibility, fine, allocate them, but then put that person under the spotlight to deliver the change that makes things better. I absolutely believe the same goes for the Government.

When the Government change position, it sometimes feels as though we have government by six-month fixed-term contracts; there is not enough stability and tenure in post. I support the Secretary of State. He has come to the Transport Committee and has been incredibly open and direct about, for example, where he sees the franchise system is not working and about the need for change.

Now that the Secretary of State has the opportunity to put new franchise agreements in place, it seems right that he should inject some of his ideas for change into those agreements. It is not as though he has constantly said that everything works well. He has admitted there are particular challenges.

[Sir Greg Knight (East Yorkshire) (Con)]

Does my hon. Friend agree that one way forward might be to follow the suggestion of my hon. Friend the Member for Hitchin and Harpenden (Bim Afolami) to increase the availability of compensation to passengers who have been badly treated?

[Huw Merriman]

I certainly do, not least because my Automatic Travel Compensation Bill is awaiting Second Reading. The Bill is all about automatic and automated compensation, on which I have met the Rail Minister. It is fair to say that I have not quite persuaded him of the Bill’s merits, but it would place a duty on train companies that currently receive money from Network Rail where there have been delays. Only a third of passengers claim for such delays, so I contend that extra money is left with the train operators. My Bill would require the train operators to invest that money in technology so that my right hon. Friend and I could both tap in and tap out, which would tell us whether we had been delayed by more than 15 or 30 minutes, and if we had been, we would automatically be credited with the compensation we were due. That would be a good step forward, because passengers find it too complex and difficult to claim. Therefore, they do not claim, and as a result, they feel raw about the service. The Government could do more for passengers by making it easier to claim compensation, and perhaps passengers would then give us more support on some of the other changes we are trying to put through. That is a rather lengthy response, but I agree with my right hon. Friend. I hope that my Bill’s Second Reading will yield some success. If my hon. Friend the Member for Hitchin and Harpenden (Bim Afolami) has a similar proposal, perhaps we could merge the two.

On the rail timetabling issue, my constituency has had an additional service—a fourth service each hour—in an incredibly congested network. I take my hat off to GTR and my rail user group, which came up with an ingenious solution to deliver the extra service without any new rolling stock. The timetable just changed when trains go back and forth between Ashford and Brighton, which has worked incredibly well.

I understand that we, as MPs, are less likely to hear about things that have worked well. Quite rightly, we hear about the challenges where things have not worked. I use the trains every day to come into work, and today I had the opportunity to talk to one of the conductors on my line, a guy called Giles. I was supposed to be reading through the Transport Committee’s draft report on rail infrastructure, but I put it down to have a chat with the conductor. We chatted for the entire journey about some of the issues he has, and his points were well raised. He is aware that, as technology advances, the workforce will need to embrace it, too. His concern on the role of the guard, conductor or on-board supervisor, as these people tend to be called, is that there will be fewer of them. That is a valid concern, because most passengers on trains want to see a second member of staff on board.

My point is that, where the system is inflexible, if the second member of staff is unable to join the train for any reason, that train cannot roll. I was a Southern season ticket holder for 10 years and we had one train every hour, so when that train could not go because the conductor was not able to board, there was a two-hour delay, which was no good for anybody. It certainly was no good for tackling congestion or for those who had mobility issues in the station. So I like the flexibility that has now been introduced in Southern whereby in all but exceptional circumstances there must be a second member of staff on board. Where such circumstances do apply—and this cannot be where Southern has not recruited enough conductors—the train can still roll, so passengers can get home. Of course that type of situation has existed on Southeastern for years and it also exists on 30% of the rail network, where the driver operates the doors.

There is another point to make about incidents that have taken place, including one in Liverpool. Where the driver and the conductor are performing different roles, tragedies can occur. A young lady died on the tracks and the coroner’s inquest made the point that if the control mechanism is taken by one person, we are less likely to see that eventuality occur. I often hear safety used as the reason why this is an issue. I was asked by the rail unions to see whether a safety report could be created. We got the rail regulator to deliver that, but it was then ignored, so I feel that all sides need to work a little more together.

--- Later in debate ---

[Grahame Morris]

Absolutely; that is a key point. I am kind of long in the tooth now, but I remember the dreadful train accident at Ladbroke Grove, where 31 people were killed and 500 injured; a dear friend of mine was killed in the Southall train disaster, in which seven were killed and more than 140 were injured; and I remember another accident at Clapham Junction. What with the complexity of the new signalling systems at places like London Bridge, with large numbers of tracks, it is safety-critical that the drivers are fully aware of which signals actually apply to them. It is a mistake for the Secretary of State to imply that ASLEF, representing the train drivers, should somehow make a concession on the training to which its members are subjected. When I get on a train, I want to be absolutely certain that it is completely safe and that the drivers are familiar with the track and the signalling system. I also want to know that there is a guard on the train, so that if anything happens—if anyone is attacked or taken ill—or there is a disabled or blind person or a woman with children travelling, the guard will be able to assist. That is reasonable in such circumstances.

I agree with the hon. Member for Bexhill and Battle about the GTR chief executive, Charles Horton, who seemed like a thoroughly decent man. He said that he was deeply sorry for the timetable disruptions. It is a bit unfair that he seems to be carrying the can, when I suspect the blame should be apportioned further up the food chain. The witnesses yesterday were well schooled in collective responsibility, but ultimately the buck must stop with the Secretary of State. It is not good enough just to keep saying sorry.

[Huw Merriman]

Will the hon. Gentleman give way?

[Grahame Morris]

I am sorry; I am running very short of time.

It is another failure on the Secretary of State’s watch. We have fundamental problems with integration, lack of planning and decision making. The franchising model is broken. It is time for a new approach and a new driver at the head of the Department for Transport.

Airports National Policy Statement

Huw Merriman Excerpts

Tuesday 5th June 2018 Commons Chamber

[Chris Grayling]

Absolutely. Aberdeen and the oil industry are clearly one potential beneficiary from all this. The oil industry is to be found in disparate parts of the world, and we have enormous expertise in Aberdeen. The routes that people in the oil industry need to take would not automatically be served by a regional airport, which is why a better hub airport with more international connections is a particular benefit to industries such as his in Aberdeen.

[Huw Merriman (Bexhill and Battle) (Con)]

rose—

[Tom Pursglove (Corby) (Con)]

rose—

[Mr Speaker]

I call Huw Merriman.

[Huw Merriman]

Thank you, Mr Speaker. It is a pleasure to get through your stacking system ahead of Air Corby.

I thank the Secretary of State because, as a member of the Transport Committee, it is a delight for me to see the Committee, across party, collaborating with the Government—I think that this is the best of it. Our recommendation 22 dealt with the Lakeside Energy from Waste plant. Will he confirm that there is still a commercial opportunity for a more up-to-date waste management capability to be purchased? That is the only recommendation that has not been followed by the Government.

[Chris Grayling]

I had a lot of sympathy with what the Select Committee was saying, but we did not accept that recommendation because the plant is not an asset categorised as strategically important for the UK. Clearly discussions are already taking place between the airport and the owners about what should happen to that plant. Had it been of strategic importance, we would absolutely have accepted the Committee’s recommendation, but the truth is that it is not, so this really is a matter for the different organisations involved.

Rail Timetabling

Huw Merriman Excerpts

Monday 4th June 2018 Commons Chamber

[Jeremy Quin (Horsham) (Con)]

rose—

[Huw Merriman (Bexhill and Battle) (Con)]

rose—

[Mr Speaker]

What a delicious choice: my former constituency chairman, the hon. Member for Horsham (Jeremy Quin), and an Arsenal fan behind him, most of whose family live in my constituency. I do not want to be unkind to Horsham, but it has got to be Huw Merriman.

[Huw Merriman]

Thank you, Mr Speaker—I’m always your man.

In the two years that the Secretary of State for Transport has been in post and I have sat on the Transport Committee, he has always been very honest, open and direct about the need for change. For any project management exercise to fail to get the sign-off from Network Rail and for it to find out only three weeks before, by which time it is too late to turn the oil tanker around, has got to be a spectacular failure. Who was the project manager and penholder for this exercise?

[Chris Grayling]

That is a very interesting question. My view is that the Network Rail timetabling process has gone badly wrong, and I cannot understand why GTR did not raise the alarm. I have asked Professor Glaister to go through all this because I want to understand exactly where the accountability should lie and be able to take appropriate action.

Transport Secretary: East Coast Franchise

Huw Merriman Excerpts

Wednesday 23rd May 2018 Commons Chamber

[Huw Merriman (Bexhill and Battle) (Con)]

I am very grateful to the hon. Gentleman. He is being very kind in giving way. Does he recognise that since 2015, when the franchise was put back into private hands, there have been an extra 1.74 million seats and an extra 40 services each week from London to Edinburgh? Is it therefore not the case that we have seen not only a 20% increase in money coming in, but an increase in service?

[Andy McDonald]

If we speak to people who take that train journey regularly, I think they will have their own observations about the quality of service. However, if the hon. Gentleman bears with me, I will deal with his remarks as I develop my speech.

--- Later in debate ---

[Chris Grayling]

If I am not mistaken, Lord Adonis actually accepted before the Select Committee that that did not happen. He thought that standing up in Parliament and saying that there would be a ban meant that there actually was one. I assure the hon. Gentleman that my Department looked very carefully at this and no evidence of any ban has been found. Moreover, a report from the National Audit Office stated that it had found no such evidence.

[Huw Merriman]

I was at the same Select Committee sitting. Of course, in the year following those events, the Labour party left office. What did happen at the time was that the then Secretary of State said that National Express would be stripped of other franchises, but of course that did not occur—I dare say that that could not happen legally—and the two franchises remained the same.

[Chris Grayling]

My hon. Friend is right. It is all very well Labour Members posturing, but we do have to operate within the law of the land, which is a fact that they sometimes miss.

--- Later in debate ---

[Alan Brown]

I agree with the hon. Lady. I will address a couple of those points because I agree wholeheartedly with what she says about the tender process and the backloading.

The reality is that private investors and companies either make money out of a franchise or they seem to be allowed to walk away. The Transport Secretary stated at the Dispatch Box that what is now happening is not a bail-out of VTEC. But if VTEC owes £2 billion in track premiums and is allowed to walk away without paying anything, that must by definition be a £2 billion bail-out. That is so simple and it cannot be argued against.

[Huw Merriman]

Surely the definition of a bail-out is when the Government actually have to pay money to the company, which of course they are not doing. If anything, the criticism of the Government is that they have ripped off the private sector and got more money from it than it could deliver.

[Alan Brown]

Yes, there we see the ideological blind spot yet again. If somebody owes me £2 billion, I would be writing off £2 billion of debt if I said, “Forget about it. It’s okay.” Let us say it is technically not a bail-out, but the Government are writing off £2 billion of debt that that company owes the taxpayer. The company is walking away and getting rid of a £2 billion liability, and I do not understand why Conservative Members are trying to argue different.

The Transport Secretary has previously justified the predicament by saying the franchisee got its sums wrong. That should not be an excuse, but, as I have repeatedly said, and the shadow Minister also touched on this, it means the Department for Transport also got its sums wrong when it thought the tender was suitable for award. It is not just the franchisee that got its sums wrong; the Department for Transport got its sums wrong, too.

The Government failed in their due diligence. What about the supposed parent company guarantees? Those guarantees clearly have not been worth much to the taxpayer. We do not know what the runner-up bids looked like, but do those runners up have a case against the Government, given they clearly failed in their due diligence by awarding this franchise, from which VTEC gets to walk away?

As the hon. Member for Edinburgh West (Christine Jardine) said, we know VTEC backloaded the track premiums. If another consortium’s bid did not backload the track premiums, the taxpayer might already have made more money, but we do not know whether there was such a bid because it is all clouded in commercial confidentiality. It also shows, yet again, that no lessons were learned from the failed 2012 west coast franchise. The Transport Secretary had a duty to ensure that lessons were learned and properly applied in awarding the east coast franchise, and it is clear that not enough analysis was undertaken.

When the story broke, although VTEC got the sums wrong, Richard Branson blamed some of the reduced numbers on Network Rail. Given the Transport Secretary also has responsibility for Network Rail, what is the truth in that statement? If it is true that Network Rail was the problem, VTEC should be compensated because that is the way the franchise model works. If it is not true, why has the Transport Secretary not come out fighting to disprove Richard Branson’s comments, instead of casually defending VTEC at the Dispatch Box? It is more smoke and mirrors from VTEC.

At the Transport Committee, the chief executive of Stagecoach used excuses such as that the Scottish referendum and Brexit hit the numbers. Considering that our referendum was in 2014, before the franchise was awarded, that is clearly patent nonsense.

Despite all that, the Transport Secretary’s new wheeze to prevent a blame game between the track owner and the franchise holder is a combined partnership model. That might improve things, but at this stage we do not know what the set-up will look like or how it will interact with other services outwith the franchise. Given the repeated Back-Bench Tory support for open access on the line, there will clearly be further complications for such a partnership to address. It is absolutely guaranteed that there will be further issues down the line.

--- Later in debate ---

[Alan Brown]

I completely agree. Rail franchise holders have been able to walk away. As has been said, the profits are privatised and the losses are underpinned by the taxpayer. That is not a proper free market model because there is absolutely no punitive action against franchise holders when they fail.

[Huw Merriman]

If that were the case, why did the share prices of the companies involved collapse?

[Alan Brown]

Funnily enough, Stagecoach’s share price increased when the Transport Secretary gave a statement from the Dispatch Box in February. Share prices go up and down, which is to do with the overall performance of these companies, and they are very big companies. The whole point of these big companies bidding and providing parent company guarantees is that it is supposed to offset the risk, rather than leaving the risk to the taxpayer.

On the question of state-owned companies or public sector organisations running franchises, the Transport Secretary’s logic completely falls apart when we consider that four foreign state-owned rail companies already operate franchises in the UK. Those companies are making a profit here for reinvestment in their domestic set-up, which is proof that state-run railways can work efficiently.

The previous east coast main line services are further proof that public ownership can work. When the previous franchise failed and was taken into public sector operation, it returned £1 billion in track fees to the Treasury and turned an operating profit of £42 million. So, as has been asked before, why move away from that successful model to one where VTEC can come in with inflated sums and then get to walk away? It is clearly not right.

The southern rail franchise shambles also happened on the Transport Secretary’s watch. The main conclusion of the NAO’s report is that it could not be demonstrated that the franchise has delivered value for money. At the time, the operator blamed Network Rail and the unions, and the Government blamed the unions, completely ignoring the Transport Secretary’s role in refusing to engage with them. The fact is that 60% of the cancellations were due to Govia Thameslink Railway and only 40% were caused by Network Rail. The UK Government set up the model supposedly to deal with the complex infrastructure upgrades, but the Government took all the revenue risks, so the strikes actually cost the taxpayer, because the loss of revenue is underwritten. The Government also awarded the franchise based on an even higher roll-out of driver-only operation, which is what caused some of the disputes.

--- Later in debate ---

[Huw Merriman (Bexhill and Battle) (Con)]

It is a great pleasure to follow my Transport Committee colleague, the hon. Member for Easington (Grahame Morris), who always speaks well on this subject.

I am very interested in why this franchise has been brought in-house yet again, and the Transport Committee is keen to get under the skin of whether there is a particular issue with this franchise that causes it to be more problematic than others. We were very fortunate to have two respected industry professionals come and speak to the Committee, Iryna Terlecky and Nicola Wood, who both act independently to verify whether a franchise should be passed. Quite simply, their point about why this franchise failed is that the bidders overbid. Why did they overbid? Because they took the view that this network is the jewel in the crown of the UK rail network, and if a private company has the jewel in the crown, that sets it up well for the remainder of its franchises.

The House may welcome my taking a step back. The Government can of course be looked at—they should, rightly, be looked at—for allowing this to happen on their watch, but it would be slightly negligent of a Government not to try to take the maximum amount of money they could for the taxpayer. That money ultimately allows the Government to continue with the financing of the entire rail network, and in that regard I think that such strong criticism is based a lot on ideology in relation to who should run the railways. In my view, although I will always regard the private sector as the better operator, where the private sector cannot operate, the state will of course step back in, as has indeed been the case.

Network Rail has taken a bit a battering in this debate. It was quite clear to us from the evidence—indeed, VTEC has acknowledged this—that, in terms of the works Network Rail has delivered, it is not responsible for the issues on this line. It may be that Network Rail became a problem, but it delivered during control period 5. We should acknowledge that, rather than use it as a scapegoat, as it often is. [Interruption.] Quite frankly, I am not particularly bothered what Richard Branson has to say. That actually tends to be the case, but I think he looks more to Brexit and other reasons to explain why this has failed, when we have in fact seen more of an inflow of people staying in this country, rather than leaving.

This point has already been raised, but I want to mention the noble Lord Adonis. I was particularly impressed by the evidence he gave to the Select Committee, and he was very balanced. He made the point that, in his view, all the franchise systems work well, but this line is an exception and has been one previously, and there is no reason to change a model that he still believes works well. He is worth listening to, but I take issue with his claim that, on his watch, a bidder such as Virgin-Stagecoach would not have been allowed to bid again and would have lost its other franchises. Of course, when National Express suffered the same fate, the legal advice was that the cross-default mechanism did not allow it to be stripped of the other two franchises, and it was not stripped of them. It is all well and good for Lord Adonis to say that a future Labour Government would have stopped such bids coming through, but he knows full well that between 2009 and 2010 there was no option to do so, so we will never know whether that would have been the case.

In the 30 seconds I have left, I want to talk up our rail network. In my view it works well. Within the EU, we have the largest investment in the railways; the utilisation of our railways is 60% greater than the EU average; and the European Commission has found that there are £11 billion of efficiency savings for the other 27 members to deliver, but zero for the UK. We have the second safest railway and the second highest passenger satisfaction ratings. That is hardly surprising, given that we have doubled the number of passengers since privatisation. I want to talk up rail because it still has more to offer us in private hands.

East Coast Main Line

Huw Merriman Excerpts

Wednesday 16th May 2018 Commons Chamber

[Chris Grayling]

We have to make sure that the new organisation—I have talked about this with the rail regulator, which has been involved since the start of developing this concept—has a duty to make sure both that space is available for other operators and that, in relation to the support and the service provided, there is no discrimination against other operators, such as regarding whether the signals work and so forth. This has to be structured in a way that protects such operators, whether in the case of First ScotRail in the north, or other operators in the midlands and the south.

[Huw Merriman (Bexhill and Battle) (Con)]

I have served on the Transport Committee for the past few years, during which time we have examined the challenges that face train operators as a result of record investment in our Network Rail assets. Is it the Secretary of State’s view that the issue on the east coast main line is so acute that the only way to fix the Network Rail assets is to have it all as one operating entity?

[Chris Grayling]

On a rail network that is operating absolutely at capacity all round—when there are very few, if any, spare train cars; and when anything that goes wrong is hugely disruptive to the timetable—a joint operating team that is able to plan train services and engineering works as part of that same team, rather than in two different organisations, is a much better way to operate a railway. My vision for the east coast main line, and indeed for other parts of the rail network where we are taking steps down the same path, is to create such a joined-up approach of managing track and train together. In my view, that is the best way to make a congested railway work more effectively for passengers.

Transport for the South East

Huw Merriman Excerpts

Wednesday 25th April 2018 Westminster Hall

[Huw Merriman (Bexhill and Battle) (Con)]

I beg to move,

That this House has considered Transport for the South East.

It is a pleasure to serve under your chairmanship, Sir Henry, and to see colleagues from across the political divide from the south-east here to contribute to the debate.

Last year, I hosted a parliamentary reception for a new, emerging subnational transport body, Transport for the South East. Strategic transport investment is integral to growing our economy and parliamentarians should support bodies such as Transport for the South East, to allow them to secure and direct the investment needed to grow our regional economy. I called this debate to demonstrate our collective support for the aims and objectives of Transport for the South East.

Let me describe the transport challenges and opportunities for those living within the south-east region. It is home to 7.5 million people, a figure that will grow by 16% over the next 25 years. That accounts for 12% of the UK population and 13% of the workforce. At £200 billion per annum, our region is the second-highest contributor to the economy after London. The amount of public spending per head in the south-east is, at £8,100, the lowest in the UK—10% lower than the national average and 20% lower than London.

Despite carrying the bulk of rail passengers, the public subsidy per passenger mile on Southern and Southeastern railways is in the region of 5p to 7p, versus Northern Rail’s 25p. Unlike London, we do not have an efficient mass transportation system, so 70% of those in employment travel to work mainly by car, which is similar to the UK’s other regions outside London. Despite that, spending per head on local roads and local public transport is lower in the south-east than in any other English region outside London.

As the gateway between the rest of the UK and mainland Europe, we are fortunate in having some of the major transport assets within our region. Dover and Southampton ports power the UK’s European and global export market. Gatwick carries the world’s busiest and most efficient runway. Heathrow, on our border, is the second busiest airport in the world. We have a high-speed railway link to the continent and more commuters journeying to London by rail than any other region.

[Gareth Johnson (Dartford) (Con)]

Will my hon. Friend give way?

[Huw Merriman]

I was just about to mention the Dartford crossing, so I will of course give way.

[Gareth Johnson]

That is very good timing—perhaps I should have let my hon. Friend continue. As he mentioned High Speed 1, does he agree that the Elizabeth line—the Crossrail system—which is very much to be welcomed, is nevertheless unsatisfactory because it falls 10 miles short of High Speed 1 at Abbey Wood? There is a gap of 10 miles that prevents commuters going from Windsor and the west of London right through to Brussels, Paris and so on, which would enormously help the transport network in the south-east.

[Huw Merriman]

My hon. Friend has a similar issue about High Speed 1 to the one I have about Ashford. We believe there is a real economic case for links towards Hastings and Bexhill. I am absolutely sure that his economic case and the case for expanding on current plans will be heard.

I was about to reference the Dartford crossing, and the challenges and opportunities delivered by 50 million vehicles per year travelling across the River Thames.

[Peter Kyle (Hove) (Lab)]

I congratulate the hon. Gentleman on securing today’s debate. Does he agree that we have incredible infrastructure and transport hubs? I would add Newhaven port to the list he gave. Outside London, the south-east economy needs those infrastructure hubs to add up to more than the sum of their parts. If we are to exploit fully the economies of Slough and Brighton—I struggle to add Bexhill and Eastbourne to that list—getting people to and from them is incredibly important. We need to get that right so that the south-east economy outside of London does not remain dependent on just London.

[Huw Merriman]

Despite our political differences, I work very closely with the hon. Gentleman, who comes from further across the coast in Hove, and whose constituents experience many similar challenges to those of my constituents. He is absolutely right. A body such as Transport for the South East gives us that opportunity. Although it is always tempting for us to focus on our individual constituencies, which we must, the reality is that the sum of the parts is going to be much better at delivering what we need as our constituents travel from one part of the south-east to the other. He is right, and I hope this debate will move us on.

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

On the Dartford crossing, does the hon. Gentleman agree that the concerns of the residents of Gravesham, and in particular of those in Northfleet and Gravesend, should be taken into consideration before the scheme is finalised by the Government?

[Huw Merriman]

With any major transport project, that is absolutely essential if we are to have good will. A crossing such as that is incredibly exciting because it will alleviate the existing pinch point and make us more productive, but of course we need to carry the local population with us, particularly as it is the locals who are impacted—many who travel will not necessarily be from the local area.

It is a coincidence that I took interventions from two Opposition Members as I was about to talk about Government intervention and thank them for significant investment schemes in the south-east transport network. In this road investment period, Highways England will invest £2 billion into roads in the south-east. The equivalent funding period for Network Rail will see £3 billion invested in the Southern and Southeastern rail network, which has some of the oldest rail infrastructure in the UK despite carrying the most passengers. Although we have challenges to overcome, and although we lobby for a funding share commensurate to our output, we are getting more funding overall because the Government are spending more on transport. The key is to ensure we get the projects the region needs. That is where Transport for the South East comes in to play.

Established in June last year, Transport for the South East is the shadow subnational transport body representing 16 local transport authorities and five local enterprise partnerships, which speak with a single voice about strategic transport priorities for the south-east. Its primary aim is to support and grow the economy in the south-east by identifying and prioritising a programme of integrated strategic transport interventions. It also aims to improve the experience of the travelling public and businesses and bring about more reliable journeys, free of congestion, while safeguarding the environment.

Although I am tempted to raise my own local transport issues in this debate today—I encourage others not to hold back—and lobby for schemes within my 200 square miles of constituency, I believe that there is more chance of securing success in my constituency and those of colleagues if we all work together to establish one body, with one voice, that works effectively across the south-east region to address the biggest problems in our strategic infrastructure network. By getting behind the work of the body—it is under the chairmanship of Councillor Keith Glazier and the leadership of the region’s local authority and local enterprise partnership representatives —we can secure the best strategic transport to support the outcomes we want for our region: new housing without increased congestion, improved connectivity and access to the best employment opportunities for our residents.

The south-east’s population has substantially grown in recent years. Businesses are drawn to a great place to do business and individuals are drawn by high levels of employment. That has driven growth in the south-east’s economy of 25% since 1997, which has generated substantial tax revenue for the country. There is, however, a cost to this success. Our transport infrastructure is facing the challenges of population and economic growth and we risk the future delivery of an economy of huge strategic importance to the UK if action is not taken. That is why Transport for the South East is vital for our future prosperity.

At the same time, TfSE knows that it must not forget those pockets of the region that have not experienced the same economic success and are not as prosperous as other parts. Our coastal communities in particular—many hon. Members represent those communities—have large populations, high unemployment and low productivity. That is due in part to poor connectivity, and in part the further and higher education facilities in those deprived areas of employment. The transport network has a key role to play in improving access to skills and employment and creating new opportunities for the residents of those areas so that they, too, can lead prosperous lives. The challenges extend beyond the administrative and political boundaries. They require the new body to join up transport policy, regulation and investment, and give clear strategic investment priorities to improve connectivity across our region.

To move forward, Transport for the South East needs to do three things: develop a transport strategy, secure statutory status and secure additional funding from the Government. Considerable funds have been awarded to Transport for the North, which has received £50 million, and Midlands Connect, which has received £17 million, to help them take forward their work programme over the next few years. The subscriptions that Transport for the South East is currently raising from its constituent authorities will amount to only £500,000 in the next year. We must congratulate the local authorities that raised that cash. They have taken the initiative and come together despite their own funding pressures because they recognise the importance of working as one. However, more funding is badly needed, not least because the Transport for the South East infrastructure has a significant bearing on the performance of the wider UK economy. Securing statutory status is critical in ensuring that Transport for the South East becomes a formal legal entity and a formal partner of the Government, Network Rail and Highways England, with the ability to influence their investment programmes. Without that status, it will not have the influence we need it to have.

This substantial, resource-intensive process will require additional funding support from the Government if it is to be completed in a timely manner. Work on the main transport strategy is due to commence in the summer, but the pace of its development is dependent on central support of the kind enjoyed by Transport for the North and Midlands Connect.

To conclude—I want to give other hon. Members the opportunity to raise issues in their localities—the south-east economy is already delivering for the country, and has greater economic potential if we allow it to come through. Awarding Transport for the South East statutory status would give us the opportunity to identify and prioritise a package of strategic transport improvements, which will benefit not just the south-east but the entire UK economy. With Government support, Transport for the South East will be able to move at pace to statutory status and, more importantly, complete its transport strategy, which will determine the transport investment we get in the south-east.

Strategic transport investment will give not just the south-east but the country as a whole the opportunity to prosper. I look forward to working with colleagues and Transport for the South East as a new body as it drives these new opportunities. I hope the Minister will signal in his response his encouragement for the quest we are following.

--- Later in debate ---

[Huw Merriman]

I thank you for chairing what has been a really good-natured debate, Sir Henry, and your team for keeping us to order. I thank the Minister. I am sorry that, unlike him, I did not cycle in today. Commuting from East Sussex, as I do daily, I would not have made the debate unless it was moved to tomorrow. I also thank the shadow Minister for her kind words.

The Minister is absolutely right when he talks about the south-east having large areas of wealth. I say to him to keep investing in us and we will pump more than the £200 billion that we pump into the UK economy as a whole to support the other regions. We can do that only with more support and investment in our area. The Minister is also right to point out that parts of the south-east—the coastal areas, which have been represented today—are deprived. Those constituents of ours deserve the same right of access to transport to link them to other parts of the UK as other deprived parts of the UK have. We very much stand up for those constituents.

I thank my hon. Friends the Members for Chichester (Gillian Keegan), for Dartford (Gareth Johnson) and for Clacton (Giles Watling), and the hon. Members for Slough (Mr Dhesi), for Hove (Peter Kyle) and for Eastbourne (Stephen Lloyd), for making this a debate in which we have worked cross-party to encourage TfSE to find its voice. It is absolutely essential that we work together as a team. It is no good us looking to the team of MPs in the north or in the west midlands engine.

The reality is that the south-east is the powerhouse. We have the assets: we have Gatwick, Dover and Southampton, we have Heathrow and we have the Eurostar. Those are the jewels that we want to support. I very much hope that all MPs from across the south-east will work together to make Transport for the South East a great success.

Question put and agreed to.

Resolved,

That this House has considered Transport for the South East.