Iain Stewart
Main Page: Iain Stewart (Conservative - Milton Keynes South)Department Debates - View all Iain Stewart's debates with the Department for Transport
(11 years, 5 months ago)
Commons ChamberIt is a pleasure to follow, for the second successive Wednesday, the hon. Member for Liverpool, Riverside (Mrs Ellman), Chairman of the Transport Committee. Last week our discussions were about high-speed rail; this week’s discussions will be at a slightly more sedate pace.
These are encouraging times for railways in the United Kingdom. As the hon. Lady mentioned, since privatisation passenger numbers have doubled and freight is showing a healthy increase of about 60%. That compares very favourably with our counterparts on the continent. I believe it is fair to say we have had the fastest growth in rail usage.
We are also seeing a substantial programme of investment in our rail network, with large projects such as the electrification of the great western line and the midland main line and the opening of new rail lines, including, I am pleased to say, the east-west line through my constituency to connect Bedford, Milton Keynes, Oxford and Aylesbury, and, it is to be hoped, in due course going further east towards Cambridge and the East Anglian network.
The hon. Gentleman made some comparisons with the rest of Europe in terms of railway passenger numbers. Would he also make some comparisons about the levels of fares in this country and many other European countries?
I will happily do that. Indeed, I looked into this matter for a previous debate, as it is often claimed that our rail fares are the highest in Europe. Certainly if we compare immediate, walk-up, any time fares, we are comparatively more expensive, but if we look at the whole basket of fares, we compare very favourably. I urge the hon. Lady to look at an independent website compiled by regular rail users called “The Man in Seat Sixty-One”. It compares similar journeys on the continent and here, and for even very short-time advance fares we compare very favourably, so I do not accept that across the piece it is more expensive to travel by rail in this country than on the continent.
As my hon. Friend has been comparing fares between here and the continent, does he agree that we have greater scope to use different levels of fares to spread the use of our railways more evenly throughout the day, rather than having people crowding into certain rush hour periods? That would be a useful change that could be made, especially on certain lines.
I am grateful to my right hon. Friend for that. I think I anticipate where her question is leading—it perhaps relates to high-speed rail—and I hope she will forgive me for not commenting on that. However, I agree that there is potential for expanding rail use outwith the peaks. Although the whole west coast main line franchise process had to be suspended, FirstGroup’s bid submission contained an ambitious but, I thought, deliverable wish to increase patronage of the railways outwith the peaks. That will help to generate more income and bring about a shift from other modes of transport to rail.
On investment, I was mentioning some of the larger projects that are going on, but much smaller-scale, incremental improvements are being made, particularly on the west coast main line. Passengers in my constituency are already benefiting from the lengthening of the Pendolino trains from nine to 11 carriages; and on London Midland’s commuter lines the speed of many trains has already been increased to 110 mph and it is in the process of procuring additional carriages to provide more capacity on those trains. so substantial investment is being made at the moment.
That investment compares very favourably to the situation not that long ago—two or three decades ago—when our railways were in a period of marked decline. The Serpell report in the 1980s was commissioned by the nationalised British Rail, and its most radical option would have truncated the national network. There would have been nothing north of Newcastle, nothing west of Exeter and the network would have been reduced to the core inter-city lines in a bid to cut out loss-making lines and deliver the railways to profitability.
My hon. Friend will welcome, as I do, the transformation of rail services in Kent thanks to High Speed 1 and, in particular, the additional investment in extra trains and services resulting from the popularity of that new route.
I am happy to endorse the point that my hon. Friend eloquently makes. I have travelled on that line and seen at first hand many of the improvements that have been made.
The point has been made that the rail network requires subsidy to operate, and I agree with that. Many lines would not be profitable in themselves, but for social and environmental reasons they require subsidy. We need to take into account not just the operating profit and loss of an individual rail service, but the opportunity cost: the cost to the country if that rail line did not exist and people had to travel by car or another mode of transport. We can only imagine the congestion on the roads around our major cities if we did not have commuter rail lines. They might not, in themselves, be profitable, but the environmental and financial cost of having those passengers travelling by car or another mode of transport would just be too much to bear.
I welcome the Government’s commitment to continue to subsidise large parts of our rail network, but we cannot escape the conclusion that Sir Roy McNulty and others reached in their report, which was that we should be looking to make our network as efficient as possible, in order to achieve his aim of a 30% reduction in the unit cost. Our network is comparatively expensive to run compared with others. I believe that that is a product of history, not just of one approach, be it the franchise model or the nationalised model. It is a cost that has been built into the system over many decades, particularly because until relatively recently we have had a period of managed decline of our network and what investment there has been has been made on a “make do and mend” basis. Additional costs are hard-wired into our system, but the system we now have is sensibly evolving.
The hon. Gentleman is a serious student of the rail system in this country. There is not a lot in what he has said with which I disagree. He is trying to put the issue into its historical perspective, so let me put it into real historical perspective. When John Major’s Conservative Government privatised the railways in the 1990s, they came to this Chamber and told right hon. and hon. Members that there would be no subsidy. That was used as justification for selling the railways off at a lower price. Network Rail now carries a debt of £30 billion on its balance sheet, so I hope the hon. Gentleman will take into consideration the false prospectus that the Conservatives gave this House in the 1990s.
It is always a pleasure to take an intervention from my fellow Select Committee member. If the hon. Gentleman will forgive me, I will not rehash the debates of the 1990s as I am more interested in what happens from here on. In an earlier intervention, he made the point that the Government are seeking to return the east coast main line to private hands as a matter of ideology. Equally, I could argue that it is because of ideology that the Opposition want to renationalise it. I draw the hon. Gentleman’s attention to the conclusion of Richard Brown’s report on franchising, which concluded that the franchising model was not fundamentally flawed and that although the detail could sensibly be changed, the investment in and success of the railways could not have happened if the franchising was fundamentally flawed.
Let me turn to a number of initiatives that, I believe, can deliver a more efficient railway. The hon. Member for Liverpool, Riverside mentioned the development of alliances between Network Rail and train operating companies. That is a very helpful and sensible development. The one large-scale alliance, between Network Rail and South West Trains, has not been in operation long enough for us to make any sensible assessment of what savings it can deliver, but as the real expert, Nigel Harris, said in evidence to the Select Committee, it
“is the only game in town”
at the moment and requires a fair wind to achieve the savings that it hopes to.
Such alliances are not the only form of alliance available. One or two other examples provide evidence that such an arrangement can deliver useful savings and efficiencies in the railway. The project in Scotland to electrify the branch line to Paisley Canal on the Greater Glasgow network was an alliance between Network Rail, First ScotRail and Babcock engineering. They were able to electrify the branch line at a substantially lower than expected cost and two years ahead of the planned development because the power was devolved down to that level, meaning that the various experts and operators could get together and deliver the project very efficiently.
I am doing a fellowship with the Industry and Parliament Trust on the rail industry and I have spent a good number of days going around parts of the railway system. I have seen two separate examples of an alliance between a train operating company and the rolling stock manufacturer, which enables a much more efficient system of maintenance and refurbishment of the rolling stock. I visited the Kings Heath depot, jointly operated by London Midland and Siemens on the London Midland franchise, and—this will interest my hon. Friend the Member for Folkestone and Hythe (Damian Collins)—the Hitachi depot where the Javelin trains are maintained with Southeastern. Those depots are delivering a much faster and more efficient turnaround in train maintenance. They are not “grands projets” or exciting stuff, but they deliver a much better service for rail users at a much lower cost.
My hon. Friend mentions the Southeastern trains. He might have noticed that the Javelin trains perform much better in poor weather, as they can cut through the snow and, effectively, open up the lines for the more traditional services.
That is another excellent point from my hon. Friend. As we continue to procure new rolling stock, there is greater scope for the more efficient method of alliancing between operators and manufacturers.
Does my hon. Friend agree that alliances between Network Rail and local authorities are also extremely important in delivering local rail infrastructure projects, such as the Coventry to Nuneaton rail upgrade? We are working with Network Rail and local authorities, with funding from the Government, to deliver that important project.
I am happy to endorse that point. There is no one-size-fits-all model of alliance; different parts of the country will have different network requirements, and it is sensible to allow different arrangements to be established where they make sense.
Before leaving alliances, I want to sound two cautionary notes about bigger alliances, such as the one between Network Rail and South West Trains. First, they should not exclude open access operators, which I think offer a healthy alternative and competitive service on some lines. There is concern that too tight a deal between Network Rail and the dominant train operating company might—I put it no higher than that—exclude open access operators. I ask the Minister to keep an eye on that. Related to that, one of the witnesses to the inquiry that the Transport Committee is conducting into access to ports flagged up a concern that rail freight operators might be disadvantaged in securing paths on busy rail lines if too deep an alliance exists. Again, that is only one concern that has been expressed, but it is something to keep an eye on.
I agree that the Government’s review of ticketing offers considerable scope for encouraging more passengers on to the railway system and delivering that aspect of the network more efficiently and cheaply. There are all sorts of options, including smart ticketing and moving staff from behind windows on to station concourses to assist passengers; and more and more people will use their mobile phone to buy tickets and make reservations. The Select Committee heard evidence from some train operating companies that they will be able to deliver a more customer-friendly system of making reservations, rather than customers having to reserve some time in advance. There are considerable opportunities to boost numbers on our railways.
Another opportunity is offered by developing retail services at stations, from large destination stations such as St Pancras, where there is a considerable number of retail outlets, down to much smaller stations. As part of my IPT fellowship, I looked at Denmark Hill station.
Perhaps the rents from premises on stations will go to the railway industry, but profits will go to the retailers, so retail development at stations would not make much difference, I would have thought.
I must disagree. Airports derive a considerable part of their income from the retail space at airports, and I see no reason why railway stations could not do the same. I am not saying that it would transform the economic model of railways, but it would be a useful additional source of income.
As I was saying, retail development is happening at smaller stations. Denmark Hill station is a lovely Victorian building, which is being remodelled so that, instead of a fairly horrible little ticket office and coffee machine, there will be a swish café, making it a much more attractive environment that will encourage people to use the railway. There is a lot of scope in such developments. I would even suggest that, where the Government are trying to reduce Government real estate costs, they might consider moving services such as post office counters into railway stations. It would be a bit of joined-up government to have public services all available in one spot. That is just one little suggestion, but at the heart of all this is the ability of the private sector to innovate, provide different services and deliver what the customer wants.
It occurs to me that if all the retail outlets and hotels were, perhaps not renationalised, but taken back into, say, Network Rail, all the income and profits would go to the railway sector, rather than retail.
The hon. Gentleman seems to have a rose-tinted view of British Rail. I gently remind him of the nationalised British Rail catering options, from the curling cheese sandwiches to the tea and coffee that were indistinguishable. I would support private innovation in that field.
I am sorry that the hon. Gentleman has such strange views of the old British Rail, which I accept was starved of investment under successive Governments, but certainly the breakfast on the east coast main line was excellent.
I am too young to have been able to enjoy the east coast main line in those years, so I cannot comment, but from what I remember of the old British Rail Scottish region, the catering offer was not—
Has the hon. Gentleman sampled the catering offer and customer comfort on ScotRail, because I rather suspect it is not much better?
I have been on a number of trains in Scotland and had a thoroughly enjoyable experience. I do not know which services the hon. Lady has been on, but the last time I took a ScotRail train it was rather good.
If the Minister will forgive me, I want to touch on two local issues. First, I mentioned earlier the welcome investment that Virgin and London Midland are making in their rolling stock, which when all is delivered will achieve a considerable increase in capacity for my constituents. Until we get that, we have a problem with overcrowding, particularly during the evening peak. I have written to him about that before and so am just giving a gentle nudge to see whether we can reach a temporary arrangement between London Midland and Virgin to allow some London Midland passengers to use Virgin trains in the evening peak in order to spread demand.
Secondly—I made this point this last week—when we look at the second phase of high-speed rail and where the east-west line will intersect the proposed high-speed line in Buckinghamshire, perhaps it would be sensible to look at an intermediate station to allow people in Milton Keynes and the rest of Buckinghamshire to access the line.
In conclusion, the railways are in a good place. The problems and challenges we face are the product of success and increased patronage. The investment that is being made is welcome. I heartily endorse the different investments the Government are making and look forward to our achieving another golden age for the railway network.
My hon. Friend is absolutely right. We have seen people travelling longer distances to work and growth in the economy, particularly in London and the south-east, leading to much more commuting from longer distances to take advantage of lower house prices further from London, and so on. The amount of travelling that people need to do has increased enormously. The only way they can do it is by rail. I speak as someone who is sometimes asked by people, “How long does it take you to drive to London?”, to which I say, “I don’t know and I’ve never done it”—why would I, from Luton to London every day? That is my view of rail. I have been a passionate supporter of railways for a long time.
However, since privatisation we have seen a surge in costs, not just on the operating side, but on maintenance and track renewal. Time and again when Labour was in office, I raised with Transport Secretaries the fact that the costs of maintenance and track renewal had gone up by four or even five times since privatisation. The reason was largely to do with the move towards more contracting and away from direct works. That contracting involved lots of lawyers and layer upon layer of project management, all of which meant bureaucratic cost, which is still the situation now. Indeed, after some time maintenance was brought back in-house. The problem was that the bad habits established while it was contracted out continued and the same people who operated in the contracted-out version carried on doing the work in-house, so there was not much difference. We have to look back to how things operated in the days of BR, when they were done much more efficiently.
Direct employment of engineers is crucial in that. Rather than having project managers running schemes, with layer after layer of project management, and engineers employed as consultants, we should have engineers directly employed by Network Rail and running schemes from the top, not being brought in as expensive consultants.
May I draw the hon. Gentleman’s attention to the example I gave of the electrification of the Paisley Canal line? It involved the train operating company, Network Rail and Babcock engineering, a private contractor that delivered the project considerably under budget and two years ahead of schedule.
There are undoubtedly examples of good practice, but there are many, many examples of bad practice, involving cost overruns and things being done expensively.
Having an engineer at the highest level in projects is crucial. Project managers cannot make judgments about technology in the way that an engineer can. We need track engineers, signal engineers and people with all those kinds of skills, which are gradually disappearing because we are not training enough in-house. In future, I hope there will be a move back towards direct employment of engineers. So that is where we are.
There is also a need to invest in infrastructure. We are talking about “Rail 2020”, not longer-term investments in things such as HS2, which we debated only last week. That is all years away—it might even be parked in a siding, which I would not object to either, although that is another view. Obviously I welcome the electrification plans. They are tremendous, but other things could be done—and need to be done quickly and could be done inexpensively—to make major improvements. As I said last week, upgrading the east coast main line, for example, could make a tremendous difference, even simply by doubling the viaduct at Welwyn. At the moment, there are just two tracks over the Mimram. If there was another viaduct, there would be four tracks and the bottleneck would be overcome. That would cost something, but nothing like the billions we are talking about with HS2. If we had east-west flyovers at Peterborough and Newark, it would free up the track for fast operation.
As I mentioned last week, a 1990 test run was undertaken by BR to see how a fast train could operate from King’s Cross to Edinburgh. Remarkably, the line was cleared for the test run and the train ran to Newcastle in two and a half hours, with a two-minute stop there, and then onward to Edinburgh in three and a half hours. That showed what could be done if the track were upgraded on a regular basis. Three and a half hours to Edinburgh is eight minutes faster than the time HS2 is now advertising. It is not heavily trafficked, and if we took the freight off the east coast main line, we could—with longer trains, more modern signalling and a bit more of an upgrade—get much more capacity on that line very cheaply. I should mention, of course, that King’s Cross could also serve Leeds in that way in an hour and a half. With a 140 mph operation—the sort of speed that is possible not throughout the line, but for much of it—this King’s Cross to Leeds service could bring more capacity.
The problem with the west coast main line is essentially the London to Birmingham route. As I said last week, there is an easy way of overcoming the problem by upgrading the Paddington to Birmingham Snow Hill route through Banbury. A 125 mph operation on that line would be relatively easy, with longer trains, a bit of upgrading and more modern signalling. That could effectively double the capacity for getting to Birmingham, and it would not be difficult or expensive. Paddington will be on the Crossrail route. From the City, then, someone could travel Crossrail to Paddington and straight through to Birmingham Snow Hill in the centre of Birmingham, overcoming a major problem. The station proposed for HS2 is rather further away from the centre than Snow Hill is, so some of the advantage of that is lost. Going further north, there is a stretch of 10 miles or so with three-track working north of Rugby. If it were made four-track, it would overcome a bottleneck and increase capacity going through to the north-west. As I said, things could be done that are not expensive and they could be brought in quickly, so that by 2020 all these things could easily be in operation.
Most important of all, we have to look at investment for freight. I have personally been heavily involved in a freight scheme idea—it is not a pecuniary interest, but a political interest—and I believe we need new freight infrastructure. If we could get all the freight off the existing main lines on to dedicated freight infrastructure, we could solve enormous problems. Freight and passengers do not mix well, as they have different operating speeds. Passenger trains tend to go faster and are more reliable, whereas freight goes on long, slow and heavy trains, which do not fit well with passengers.
There is a scheme to overcome that problem—at least on the north-south line linking the main conurbations. I have proposed the GB Railfreight route, and last week I put in a submission on behalf of colleagues to Network Rail for its consultation on freight. The GB Railfreight route would be a dedicated line going all the way from the channel tunnel to Glasgow, linking all the main conurbations in Britain.
The important thing about freight, of course, is that 80% of it goes by lorry and trailer, not by container, so we would need to have a freight route capable of taking lorries on trains. Without that, we will not see the big modal shift from road to rail that we need. This scheme proposes precisely that, taking the largest lorries on trains. This is happening all over the continent of Europe with dedicated routes. New tunnels are being built through the Alps that are capable of taking through the largest sized freight. If we could run trains directly from Rome to Birmingham or from Berlin to Glasgow without interruption by passenger trains on a dedicated freight route capable of taking lorries on trains, I think we would see a transformation of the links between our regions and the continent of Europe, which would also breathe new life into the regional economies that so many Members represent. That scheme is a realistic proposition. It could be built quickly and cheaply, and all it needs is a nod from the Government. I have met previous Secretaries of State and officials from the Department for Transport and put the case to them, and it is a realistic prospect that I hope will be taken seriously. It has the backing of supermarkets, hauliers and so on.
One important point I wish to make to the Minister is that such a scheme would use existing track route, under-utilised lines and old track bed. Only 14 miles would be new line, and nine of those would be in a tunnel. Two routes would have to be electrified to a sufficient gauge to take lorries on trains: Gospel Oak to Barking, and Wigston to Chesterfield in the midlands. If on those routes the gauge was raised to a sufficient level and able to take full-scale lorries on trains, the scheme would work. Those lines will be electrified—rightly so; we welcome that—but if they could be raised to a sufficient gauge to accommodate that sort of freight, it would be a tremendous advantage. If that is not done and the freight scheme goes ahead later, we will have to do the work all over again, which would be an expensive irrationality.
That is what I suggest. The scheme would take up to 5 million lorry loads off our roads every year. It would take all the north-south traffic off the west coast main line, the east coast main line and the midlands main line, and breathe new life into the economies of Scotland, the north-east, the north-west and south Yorkshire. There could eventually be a link to south Wales and Birmingham, and of course to London and the south-east, and it would link directly to the continent of Europe.
Trains currently take lorries from the continent through the channel tunnel, but they can get only as far as the terminal at Barking where they are lifted off. They cannot get past Barking because the gauge is not sufficient to accommodate them. In a sense, the first phase of the scheme is already operating, but we want Governments and Network Rail to grasp hold of the idea and build the freight line that we think will transform Britain’s transport infrastructure. I hope that what I have said is helpful to Ministers and of interest to fellow hon. Members.
Exactly—and if we are talking about the scarcity of capital, we should consider the upgrading of links to Hexham. In my constituency, some existing lines could be opened up. The Leamside line, for instance, could take freight off the main routes.
Let me now say something about East Coast. My hon. Friend the Member for Blackley and Broughton (Graham Stringer), who is not in the Chamber at present, wondered why the Government were in such a rush to return to privatisation. As he said, the line is contributing to the Exchequer, and is performing well in terms of punctuality and the quality of the service that it provides. Investment in rolling stock is clearly needed. However, the staff have worked hard to ensure the success of the line since renationalisation. They should be given credit for that, and for the tremendous loyalty that they have generated among the travelling public.
May I draw the hon. Gentleman’s attention to one of the recommendations of Richard Brown’s review of the franchising system after the west coast main line issue? He said that
“it is very important that the franchising programme is restarted as soon as possible.”
I would suggest that that is a reason for bringing forward the franchising process for the east coast main line.
That may well be the case, but is it going to be good for the taxpayer? We currently have a very successful operator contributing to the taxpayer, so why automatically go down this route, unless there is an ideological reason of wanting to ensure that the operator moves from the public sector back into the private sector, which is clearly the position of the hon. Member for Ipswich (Ben Gummer)?
One of the other conclusions of the Brown review was that the pause in the franchising programme was having knock-on effects in the railway procurement industry, and that delay could interrupt the important investment in long-term projects. That is one of the reasons Brown concluded that the franchising timetable should be restarted as soon as possible.
I am going to come on to the issue of franchising in a moment, but the hon. Gentleman’s point is based on the assumption that the Government would not invest in the rolling stock now for a nationalised company. The idea that the new rolling stock will be provided only by a private provider is not a good enough reason for saying that we should not at least examine the reasons for keeping the company in public ownership.
This is not just about the rail network itself; it raises issues around rolling stock and guaranteeing jobs in this country in providing new rolling stock, including through new investment in the north-east by Hitachi, which is very welcome and is locating a new factory at Newton Aycliffe.
How local people can influence the franchising process is a key issue. My hon. Friend the Member for Liverpool, Riverside (Mrs Ellman) raised the important point of the transparency of the process, and there is a constituency issue that I have been campaigning on for a number of years now: the stretch of the east coast main line that goes through my North Durham constituency from Chester-le-Street into Newcastle. Chester-le-Street has now increasingly become a commuter town for Tyneside and Teesside. It takes less than 15 minutes to travel from Chester-le-Street into Newcastle, and if it was in south-east England it would therefore be seen as an obvious place to commute to work from. In the mornings and early evenings there is an hourly, and sometimes a half-hourly, service, but throughout the rest of the day the timetable is intermittent, and later in the evening when people want to travel into Newcastle for entertainment there is a limited service.
I pay tribute to the campaign of the stationmaster at Chester-le-Street, Alex Nelson. He has been arguing for an hourly stopping service from Chester-le-Street to Newcastle. We have met Northern Rail to make the case for that, and the point it keeps making to us is that the franchising model puts an emphasis on inter-city routes, rather than stopping services. It is clear from the public meetings I have had about this issue over the past few years that there is huge interest in Chester-le-Street to ensure it gets an hourly service into Newcastle not only at peak times, but throughout the day and at weekends. That would serve to reduce the number of cars travelling to Newcastle and alleviate congestion. We need to think about how local people can have a voice in determining issues such as the train service from Chester-le-Street, which is not only important for local people, but which benefits the economy of Tyneside. A study has recently been undertaken on widening the western bypass, as we need to get the cars off that. One of the easiest ways of doing so is to invest in the likes of an hourly stopping service from Chester-le-Street.
Finally, I wish to discuss the wider transport picture in the north-east. I congratulate the seven local authorities in the north-east which are coming together in a strategic partnership to examine economic development. Not only that, but one of their key objectives is to look at a joined-up transport policy. This debate is about rail, but we cannot look at that in isolation; we need to consider how it joins up to other public transport networks, be it the buses or the Metro system in Tyneside. It also needs to be as easy as possible for people to transfer from one mode of transport to another. One thing I would like the authorities to back is some kind of Oyster card, whereby people could travel using different modes of transport in the north-eastern region. That would make travel a lot easier, and the new authority may well be able to push forward with such things. The investment we need in our rail network is not only vital for the purpose of people travelling; it is vital to the future economic benefit of this country and certainly of regions such as the north-east.
I have considerable sympathy with what the hon. Gentleman says. It is important that we consider opening new railway lines or reopening lines that have been removed but whose beds remain in place where there is demand and need for them and if the business case backs it up. Tunnels are an important and topical issue that has come across my desk and we are looking at it very carefully.
May I underline the importance of keeping old route lines open or free for potential reopening? Work on the western section of the east-west rail project has been very easy because the line is still there, but there are difficulties on the Bedford to Cambridge and East Anglia section because part of that track has been built on.
My hon. Friend makes an extremely valid point. We have to learn from some of the mistakes of the past and what happened to the railways post-Beeching. I accept what my hon. Friend says.
We are well on the way to delivering a new high-speed railway for Britain, bringing extra capacity, faster journeys and better services and changing our economic geography. I am sorry that the hon. Member for North Durham is not as enthusiastic about this exciting way of improving connectivity, journey times and increasing capacity. [Interruption.] The hon. Gentleman is chuntering, but I am surprised—