Rail Infrastructure Investment

Jim McMahon Excerpts

Thursday 17th January 2019 Westminster Hall

[Jim McMahon (Oldham West and Royton) (Lab/Co-op)]

It is a pleasure to serve under your chairmanship, Mr Evans. I congratulate the chair of the Transport Committee, my hon. Friend the Member for Nottingham South (Lilian Greenwood), on its detailed report and on the hard work that she puts into that brief. She is what we call in Greater Manchester a grafter—where I come from, there is no higher praise than that.

Transport is really important but does not act in isolation. There is an ecosystem that supports the society, community and local economy. It has been well trailed, but we have not seen any meaningful action on even beginning to address the regional imbalances in investment that have been well rehearsed in this place. It would be good to hear from the Minister about the practical steps being taken to invest outside London and the south-east.

We are told by the Library that overall investment in transport in London over the past five years was £33.4 billion, taking 27.6% of total transport investment. In the north-west it was £11.1 billion, taking 9.2% of the total; in the north-east it was £3.3 billion, or 2.7% of the overall transport spend. Looking specifically at rail, the gap becomes even wider. London gets 42.8% of rail investment, the north-west 9.4% and the north-east just 2%. How can that be justified, even with the difference in population? Given that the regions outside London and the south-east are seriously disadvantaged by Government investment, are we surprised that they are not realising their full potential?

The Library briefing makes it clear that the figures for the north-west and the midlands are temporarily inflated due to some of the early work on HS2. Geographical work tied to a region has been included, but the wider cost of HS2 has been pulled out of the figures, so it appears that the north-west and the midlands receive more through that project than they actually do. London is getting about half of the transport spend. How can that be right or fair, and how can it deliver a balanced UK economy in which every community can thrive?

I know Members here today are aware that there is a world of difference between our big cities and their surrounding towns. There are even bigger differences between the towns and the villages and districts. When we look at the transport ecosystem, it is really important that we are not just discounting. London is a benchmark and we discount for the cities, towns and communities, which means that most people in this country are poorly served by a transport system that does not work in the way it ought to.

We are not calling for any more or less than our fair share. I do not mind if London continues to receive the money that it has received for generations. I am not resentful if the forward view means that that continues, but I demand the same for my community. If the money can be found for London, it ought to be found for the north-west region, too—no more, but certainly no less.

We have heard about the cancellation of the electrification project in July 2017, when it was described as no longer affordable. We have seen timetable cancellations: there were a staggering 470 cancellations every single day in the summer of 2018. The Office of Rail and Road’s review concluded that that was partly due to the lack of clarity on who was responsible for what. There was mass confusion in the industry, and the Transport Secretary’s response was simply, “Well, I don’t run the trains.” If we have a Transport Secretary who refuses to acknowledge his own role in running the trains in this country and to have political accountability for that, it is little wonder that the operators get away with what they are doing. There is just no accountability, which for my community means that Northern continues to provide a completely sub-standard service on a daily basis. It not only botched the introduction of the new timetable; but is in constant disputes with staff who are at their wits’ end with the management and the way they are being treated.

The latest action is on whether carriages should have guards. People in Greater Manchester might think, “Well, even if there are no guards, we just hope there are some carriages”, because 11% of train journeys are shorted, which means that they do not have enough carriages to meet the demand from commuters. Some 5,500 journeys did not have the capacity to meet passenger demand. What is the answer? In the north-west, we have been sent trains that even the Iranian Government have decided are not fit for purpose. We have been sent more Pacer trains—from the north-east to the north-west—to make up for the fact that we have passengers who wait on platforms, without enough carriages to service them, in order to get to work and get their children to school. How can that be right? The trains were built in the 1980s and were always intended to have a shelf-life of about 20 years. They were a pragmatic and affordable way to get new stock on the lines, but they were never intended to be on the lines nearly 30 years on. That just cannot be right.

Passengers face a 3.1% increase in fares—the largest increase over the past six years—while shareholders continue to profit from a sub-standard service. We know that the Conservatives do not believe in nationalisation. Well, they do—provided it is another nation that runs our trains. Deutsche Bank, which owns and operates the trains in the north-west of England and serves Greater Manchester, is not providing an adequate service; it is making profit from that contract. Where is the accountability? We have a Transport Secretary who says, “It’s nothing to do with me, guv.” We have an operator that is taking money and creaming off the top while services are not running on time. They do not run at all in some cases—when they do turn up, often it is not possible to get on because there are not enough carriages. If the operator gets its way, pretty soon there will be no guards on carriages, and people will not feel safe. The Mayor of Greater Manchester has made it very clear that that is just not on, and he would not be comfortable with that. The truth is that it is a very raw deal.

I will talk about the wider transport ecosystem. We need to bear in mind that it is not just rail that has been hit by poor service. When the Pacer trains were brought in for their 20-year life—nearly 30 years ago now—bus travel was commonplace. It still is, but there are now 140 million fewer bus journeys in Greater Manchester than there were 30 years ago. That is a 40% decline in bus use in Greater Manchester. Why? Because there are 40 operators in Greater Manchester—we are desperately trying to get franchising off the ground, but the Government are not providing the investment required to get through the legal process and produce the business case—all with different ticketing systems, and all deciding where they are willing to operate.

Oxford Road—the university corridor in Greater Manchester—is one of the busiest bus routes in Europe, and one of the cheapest. One of the most affluent parts of Greater Manchester—the south—is the cheapest place to catch a bus. In the north, which is generally the poorer part, the fares can be 40% higher. Often the poorer a person is—depending on where they live and where the operators choose to operate from—the more they pay just to get to work. That, by the way, is if there is a bus that goes where they need to go at the time when they need to get there. Shift workers in Greater Manchester might as well give up on the buses, because they cannot get to most big employment sites, such as Manchester airport or Trafford Park, to meet shift-work patterns.

The ecosystem has been completely torn apart. Operators pick and choose what they are willing to do, the taxpayer is desperately trying to plug the gap but it is nowhere near enough, and the number of bus journeys is falling. Year after year, we see subsidised routes taken away because the money does not stretch far enough, and the same is happening with rail.

It is a raw deal for taxpayers, passengers and, critically—this is really important when we are talking about a future Britain beyond Brexit—the future of our economy. After Brexit, the country will be hugely vulnerable to the danger of financial services and the insurance market deciding to relocate and basing themselves elsewhere in Europe. That will expose how lazy this country has been in addressing the underperformance in our regions. We have relied on the City of London to keep the UK economy going, and that has allowed us to ignore the hollowing out of the economies in the regions. Transport is a key part of that. We know that investment in transport leads to growth and jobs and creates a more vibrant economy. People live better lives and can access job opportunities that they might not have been able to access previously. We need more action and Government spending.

There are different views on HS2. I am a supporter, partly because it is investment in the north, so why would we not support it? However, the Chief Secretary to the Treasury is already issuing calls for a zero-sum review of capital spend projects such as HS2. I put this down as a marker: the Government may believe that, because it is not in London or the south-east, it is an easy target to be deleted, but we are watching it very carefully. It is critical that we ensure that the UK can perform to its full potential. The routes and investment beyond HS2 to ensure that the north of England is connected are absolutely critical, too.

[Lilian Greenwood]

I wholeheartedly endorse my hon. Friend’s concerns about future investment in HS2. There are good reasons to be concerned. When the transpennine route upgrade was firmly committed to in 2015, the DFT promised that, when the work was finished, the whole route from Liverpool to Newcastle, via Manchester, Leeds and York, would be fully electrified. The recent letter from Transport for the North’s chief executive board members reported that the DFT’s plans leave a crucial part of that route unelectrified—a gap of 18 miles in the 183-mile route. Does my hon. Friend agree that the failure to electrify that 10% will mean worse reliability and higher operating costs in the north for years to come?

[Jim McMahon]

I generally think that, with these types of capital project, once the decision to invest is made, the investment has to be seen through, because the full potential of the investment is only realised when it is done to the quality, standard and specification that was set out originally. When things are chipped away towards the end of a project, it is inevitable that the full advantage and economic return on the investment will not be realised, and the original investment will be compromised.

It is critical that the Government take a long-term view. There is far too much short-termism. They are looking to the next election, the next target seat and where their core vote is, rather than to what the structure of our economy will be in the next 10, 20 or 30 years. Greater Manchester is trying to look ahead with its 2040 strategy, but it is very difficult to do that if it does not know what funding is coming down the pipeline. We can decide what is important for our regions, but the way the Government invest makes it very difficult for our regions to plan ahead and ensure they have a joined-up transport strategy. It also makes it very difficult for UK manufacturers and engineering companies to bid for that work and plan ahead, because they do not have a forward programme that they can organise and work towards. I speak to many manufacturers in my constituency. In Oldham, they have contracts with Transport for London and the German Government, but they say consistently that it is very difficult to get a contract with the UK Government. Part of the reason why the Elizabeth Tower is shrouded in steel from all over the world, apart from Britain, is that it is easier for other countries to get contracts from our Government.

[Priti Patel]

The hon. Gentleman is making a very strong case for investment and economic growth in the regions. I agree completely that this is about long-termism. The Minister obviously heard my comments earlier. Part of the reason why the Great Eastern main line taskforce has been pretty robust in our representations is that we have been working with businesses and local enterprise partnerships. We are giving businesses the opportunity to put the long-term case to the Government. Does the hon. Gentleman feel that other regions should replicate that?

[Jim McMahon]

I agree with that approach. It is important that we have an economic view and can demonstrate the wider economic advantage and growth. Transport for the North is working to that end, and has built very good partnerships. It generally has a good relationship with the Government, although there are constant demands for the Government to plan further ahead and be more committed to finding resources. That partnership approach is extremely important.

This has been a good debate. I welcome the Select Committee’s report, because it is important that we shine a light on these issues. As a north-west MP, I thank the Committee members for this piece of work. MPs outside London will, for a period, continue to ask politely for our fair share. We have been doing that for quite a long time now, but the noise will get louder. If the Government are determined to look beyond Brexit and build a Britain that can thrive, they will have to put their hand in their pocket and ensure that every region in the UK gets its fair share.

--- Later in debate ---

[Andrew Jones]

How individual operating companies wish to own and run their rolling stock is up to them, but the point is that private investment and the private sector, whether it pays for a lease or for ownership, is delivering, and the public sector did not, which is why we have the long-standing Pacer trains on our network. The no-growth franchise was a significant feature. I am sure that those who let that now think that that was a mistake, because of course we have had significant growth in the north and we are playing catch-up.

It is fair to say that we had a difficult year on our rail network in 2018, as many colleagues here have said. We all know that performance declined, never more so than around the introduction of the timetable in May. But it is also fair to say that we have seen a doubling of passengers across our rail network over the past 20 or so years, which shows it is a ringing success, demonstrating the success of the public and private sectors working together to deliver significant and sustained improvement.

[Jim McMahon]

I accept that passenger numbers have increased, but the truth is that the summer delays and the autumn cancellations were not a surprise. The timetabling was agreed by Northern. It designed it, crafted it and failed to implement it properly. The delays in the autumn were down to autumnal weather, which obviously takes everybody by surprise. It is not as though it happens every year when leaves come off the trees and fall on tracks. The basic management is poor, and surely not fit for purpose.

[Andrew Jones]

We have had autumn leaves falling since time began, and whichever rail company has been operating—including nationalised ones—they have found them quite difficult to manage. To suggest that it is suddenly a bigger problem is a mistake.

--- Later in debate ---

[Andrew Jones]

We have received a further draft within the past few days. It is not the absolutely final version of the report, but I understand that we are very near it. I hope to read it, but I think that I should read it when it is finished, rather than in draft form—to be fair to Mr Brown. As soon as we have more information, I will keep the hon. Lady posted.

Regional spend has been a concern in this debate and more broadly. The hon. Member for Kingston upon Hull North (Diana Johnson) kindly said that I was definitely listening—to confirm, I am definitely listening, and definitely Yorkshire. The Government are clear that there should be a balance of rail investment across the whole network, to the benefit of the whole country. The Government and the Select Committee alike agree that capital spending in one part of the network can deliver benefits further afield.

I must stress, however, that the Department for Transport does not allocate funding on the basis of per head of population. Our railway is a network, with spending in a particular area benefiting users up and down the country.

[Jim McMahon]

Does the Minister agree that part of the problem with how schemes are assessed is that heavy consideration is given to economic return or gross value added? A mile of track in London will therefore always deliver more economic return than a mile of track in Manchester, Wales, Scotland or anywhere else, simply because of that economic assessment. Surely, to rebalance the UK, there has to be a levelling up in addition to that economic criterion.

[Andrew Jones]

I understand the hon. Gentleman’s point, and if that were the only consideration I can see how it could lead to inappropriate decisions, but that is not entirely the case. For example, the transpennine rail upgrade, which will be the biggest enhancement on our network over the next five years, would simply not be happening if we accepted his point. But I understand where he is coming from: we have to balance not only economic return and national efficiency, but the possible role in rebalancing our national geography. The lack of investment in some parts could easily be seen as a factor in economic performance.

Our decisions follow a rigorous and fair appraisal process that ensures spending goes to the projects and programmes where it is needed, delivering value for money for taxpayers and passengers. Sometimes that means that spending appears higher in some areas than in others. We cited various figures, but the numbers quoted are frequently from the IPPR. I have some reservations about the IPPR reporting, because it simply adds up future spending regardless of how far it extends. For example, its analysis includes 16 years of planned expenditure on HS2, where the most costly sections—because of land prices—are in London, but only five years of planned spending on maintenance for the other parts of our network. It includes locally funded spending by TfL, but not local, equivalently funded spending in other cities, which will result in a poor sample.

We look at data in a number of different ways. Investment in Birmingham, for example, could benefit users in Penzance, Edinburgh—anywhere across our network—and, of course, the west midlands. We look at two measures: where the investment is made and where the benefits will be felt. The numbers quoted so far on where spending is taking place largely have not taken into account where benefits are felt. However, spending figures going forward, as shown by the national infrastructure and construction pipeline, show that the Government expect to spend £248 per person in the north, compared with £236 in the south. There is an element of the phasing of schemes driving the individual spend in an area.

The rebalancing toolkit has been considered, which we have developed to support authors of strategic cases to assess how a programme or project fits with the objective of spreading growth around the country. I was asked whether it is being used. It is being used in the development of the transpennine rail upgrades and the Northern Powerhouse Rail business cases. The rebalancing toolkit is designed to help with the basic planning. It includes a checklist of questions to consider and potential evidence that can be used to help describe the rebalancing case for a project or programme in its strategic case. It is an ingredient. Does it need to be used in every single case? Given the amount of money we spend and the amount of time it takes us to plan our projects, I do not think it should be mandatory everywhere, but certainly it is an ingredient in making the right decisions. The toolkit’s objective is to make decision making more consistent by improving the focus, quality and transparency of the rebalancing evidence in the business case.

Let me answer some questions asked by colleagues. The transpennine rail upgrade offers the fantastic prospect of the north being the centrepiece of the next spending period. It is a £2.9 billion first phase of a scheme. Electrification will be a part of the proposals. It is phased to deliver the best benefits to passengers over the period. Freight will most certainly be considered; that is why we are also taking forward options for the development of the Skipton to Colne reconnection. It should be viewed as a phased activity.

The advice we have received from Network Rail is that if we spend any more money on that network during this period, with the amount of interventions required to deliver the schemes we will bring the northern rail network to a halt for just about every weekend over the next five years. We have taken the view that it would be an unacceptable price to pay, which would have a huge detrimental economic impact. We have listened to the industry experts and that is the advice they are giving us, so we are delivering this major project in phases. The criteria are about delivering the best benefits to passengers early, but our ambitions are not reduced at all.

--- Later in debate ---

[Jim McMahon]

In the light of the comments by the Chief Secretary to the Treasury, what representations has the Department for Transport made to reassert the case for HS2? Is the Minister confident that if there were a value-for-money review, the project would make it through?

[Andrew Jones]

I could answer that in a few ways. First, it is clearly right that the Treasury takes a view on managing the efficiency and delivery of public projects, because so much money is involved. We are spending half a billion pounds a week more on capital projects than the last Labour Government. We are catching up on investment.

What representations do we make? Of course there is regular dialogue between Ministers from all Departments, and certainly between the Department for Transport and the Treasury at both official and ministerial level. The Government remain entirely committed to HS2, which is part of the rebalancing of our national network. We need capacity on the network, and HS2 will deliver it.

[Jim McMahon]

The Minister has given way extremely generously, and I am grateful for that. Has the Treasury initiated a review of HS2, or did the Chief Secretary’s comment just reflect her personal view?

[Andrew Jones]

I am not the Minister with responsibility for HS2, so the day-to-day correspondence does not come across my desk, but the Government are entirely committed to HS2. The Treasury is right to say that we will look at projects to ensure that they come in on budget and on time, and that we do not see project-creep in terms of cost. The Treasury has been sighted, for example, on the way we are re-planning our investment process to ensure that decisions are made in as informed a way as possible so that there are as few surprises as possible.

Let me be absolutely clear to everybody that HS2 is a critically important project. Work is already under way to deliver it. The hon. Gentleman made the point that the appetite for it grows the further north one goes, and I am happy to echo that entirely. HS2 presents fantastic regeneration opportunities, about which I have had conversations with Judith Blake in Leeds, Andy Burnham in Manchester and Andy Street in the West Midlands.

The hon. Gentleman also highlighted the industrial relations issues that blight some parts of our rail network. The Government are keen to see a second person on trains. Indeed, we have said that there will be no blockage from the Government if that is what everybody wants. We can make changes to any agreements. Indeed, we have gone further than that and said that we will provide financial support. I have made those comments to the unions and the company. The dispute is between those two parties, but the Government can play a role in creating an environment to help them get around the table and talk, and I think I have done that. I want to see them get around the table and talk and, as they do so, stop the strikes, which have had a detrimental impact on the economy of the north.

I have not yet addressed the comments by the hon. Member for Inverclyde (Ronnie Cowan) about devolution to Scotland. Rail is devolved to Scotland. The Scottish Government set their own high-level output specification. The statement of funds available is above the Barnett formula for CP6. Off the top of my head, having discussed Scottish rail issues with colleagues in the Adjournment debate on Monday night—that was very late, so I understand that not everyone will have been present—I think it is £4.85 billion. There is significant funding available for the Scottish rail network, and the Scottish Government have control over rail.

Greater Manchester Metrolink

Jim McMahon Excerpts

Tuesday 20th March 2018 Commons Chamber

[Jim McMahon (Oldham West and Royton) (Lab/Co-op)]

Hold on to your seat, Mr Deputy Speaker, while I take you through the history of Greater Manchester’s tram network. [Interruption.] We could have two hours on this, but if it is any help, I promise not to take us anywhere near that—unless there is trouble on the line and we get delayed.

[Jeff Smith (Manchester, Withington) (Lab)]

If my hon. Friend is going to give us a history of Manchester’s tram network, which I look forward to, will he join me in paying tribute to the man described as “Mr Metrolink” by the Manchester Evening News—Councillor Andrew Fender, without whom we might not have a Metrolink system at all, and who stands down from Manchester City Council in May after 41 years of dedicated public service?

[Jim McMahon]

Councillor Fender has been a real transport inspiration for many people in Greater Manchester. He is actually a very quiet and reserved character; he is not somebody who grandstands—who seeks attention. He works in the background and diligently gets on and does the work that is very complicated, often very technical, and requires a lot of time and dedication. I have absolutely no doubt that without the time that he put in to transport in Greater Manchester—not just the tram system but the bus network, and cycling routes especially—it would not be as advanced as it is. I think that is a very fitting tribute. I thank my hon. Friend for that intervention.

Greater Manchester’s tram network opened in 1992 and is now the UK’s biggest light rail network. It is essential to Greater Manchester’s economy. We know how important transport is. It is important to get people from A to B, but it is also essential to do so efficiently, to make sure that we reduce congestion, that people can get to work affordably, and that there are routes that take people where they need to go for their employment or for leisure. People vote with their feet. The light rail system in Greater Manchester carries 41 million passengers every year. It covers 60 miles over 93 stops. However, as always in Greater Manchester, we are not content to stand still. We want to go even further.

At the moment a new line is being built to Trafford Park, and that will provide fantastic connectivity to one of Europe’s largest employment sites. People across Greater Manchester will be able to travel through the city centre and on to Trafford Park, and capitalise on the jobs that are being created there. That builds on the success of the airport line, which will take people to Manchester Airport, one of our enterprise zones—also essential for getting people to decent, well paid, secure jobs, particularly now, and in the future too.

[Jim Shannon (Strangford) (DUP)]

I am ever mindful that the Government have committed to reducing pollution levels massively in our cities. Does the hon. Gentleman agree that a working, modern, technology-friendly public transport system is essential for Manchester and other cities like it, and that the expansion of services into the south will attract more people into using the service, making it more effective, and therefore cost-effective, and benefit the environment as well?

[Jim McMahon]

That is a very important point about the benefits for the environment and the economy. At one point, I was slightly fearful that we were going to make a claim for an extension over to Northern Ireland, which would be a great day out, but I might struggle to—

[Mary Robinson (Cheadle) (Con)]

As the hon. Gentleman is talking about providing extensions, I would like to make a bid. At the moment, as he knows, East Didsbury is at the end of the line, as it comes out towards my constituency of Cheadle. We would love to see the line go all the way through to Stockport, as well as going to Manchester Airport, so that we would get true connectivity around the south of our area.

[Jim McMahon]

That is an important point. I will mention some potential routes later. There is a case to be made not only for the Didsbury line to be extended, but for a connection from Ashton through to Stockport and through to the airport, because as important as the connections in and out of Manchester city centre are, so too are the orbital links connecting the boroughs around Greater Manchester, beyond the city of Manchester. We should be ambitious; we need to create a transport vision that will guide us for decades. The people who laid the foundations for Manchester’s current Metrolink system came up with that idea—that nugget of how Greater Manchester could be different, and could be modern—many, many generations before it was built. It is important that we now take on that responsibility for the next generation, and plan that far ahead. I think Stockport ought to be the beneficiary of a tram line. I think we ought to be able to connect the whole of that eastern ring, too.

The Oldham line, which is my particular interest, started construction in 2011 and opened in 2014. Work began in the year that I became council leader in Oldham and so we had the great success of work beginning on the line. It was previously a heavy rail line, which was then decommissioned, to be turned into a light rail system. Clearly, that caused a lot of disruption and not everybody was convinced that a tram coming through the town would pay dividends and ultimately be a benefit to it, given all the traffic chaos that naturally happens when we start laying tram tracks on the road network. Plenty of people said, “If you build a tram from Oldham to Manchester, surely people are just going to go to Manchester and that will be to the detriment of Oldham.” We said, “No, this is about that connectivity that makes us part of a great Greater Manchester. If Oldham sits in isolation, thinking it is an island, and does not capitalise on one of the best cities in the world, we are missing a trick.”

It was important not just to capitalise on a great city, but to have a vision for Oldham that meant it could be the best Oldham it could be. Metrolink was very important as part of that vision and that future economy. Significantly, the phase 3 line saw an investment of £764 million. It also connected many key sites. Obviously, it connected through Oldham and on to Rochdale, but it also went through two previous housing market renewal sites. We know that where Metrolink stations are placed, there is a good effect on the housing market and demand in that locality. So Freehold, where the Metrolink stop is placed, was a key site for housing market renewal. We know the local authority is keen to see that being redeveloped, with the eyesore of the Hartford mill, which might be the subject of a future Adjournment debate, demolished to make way for decent, secure accommodation for people to live in and to create a thriving neighbourhood. Metrolink also connected the Derker community, where there was a lot of clearance as part of the housing market renewal project. Now it has fantastic family houses for people to live in, just a walk to the station, where they are connected to Rochdale, on to Manchester and further into the network—to connectivity that is vital for them.

As I said, people vote with their feet. The old heavy rail system, with the clunker carriages we used to have on the old Oldham Mumps station, carried 1.1 million passengers a year, which was impressive, but nowhere near as impressive as the figure of 3.6 million people using the current Metrolink system on the same line. So we know this has a material effect on increasing passenger numbers, and the more people who go on the tram, the fewer the people who have to travel by car, because they have a genuine alternative, provided in a more environmentally friendly way.

If the Government are serious about creating the northern powerhouse, it is crucial that we rebalance the UK’s economy. But we also need to understand that if all we do is benefit Manchester city centre and the south of Manchester, which have historically been the better performing parts of Greater Manchester, and we do not concentrate on north Manchester, which has historically underperformed compared with the south of Greater Manchester, we will miss an opportunity to make sure that every part of the northern powerhouse can benefit from future investment. Let me give some context on that, because this is not just about a northern Manchester bias and saying “Why does south Manchester get everything at our expense?” This is where the facts are. The gross value added return for Manchester south is £34.8 billion a year, which accounts for 68% of the total GVA for the whole of Greater Manchester. So we can see that an underperforming north Manchester—I am not saying south Manchester is necessarily overperforming—needs to do far better to rebalance and to contribute to that greater GVA. To do that, we need concerted and long-term investment planning—on transport, on housing and on schools. So this debate is about how we might achieve that.

Those who have been on the Manchester Metrolink and gone on a real journey will perhaps bear with me while I take them on what could be a journey of the future, if the Government and Greater Manchester are willing to work together on this plan. I am going to concentrate on the potential of connecting Oldham with Middleton and then on to the Bury line at Heaton Park. Currently, when the tram comes down the Metrolink track and gets to Westwood station, it turns off to the left, towards Manchester. In the new journey we are taking today, however, the tram could continue straight down Middleton Road, towards the sunny climes of Middleton. People could benefit from a park and ride in Middleton town centre and go on further towards Heaton Park, and join with a Bury line that would connect them with Bury and that part of Greater Manchester.

Coming back, where the line currently carries on to Rochdale after Oldham Mumps, people could go on from Mumps, perhaps up Ashton Road or even along the disused railway line—which would be a cheaper option, although clearly not to the benefit of as many people—on to Ashton town centre, where the line currently terminates. There is nothing worse than a line that terminates; we could at least carry it on and make it nice and tidy. People could carry on straight to Ashton town centre and then, as the hon. Member for Cheadle (Mary Robinson) said, there would be the potential of a loop to Stockport and on to Manchester airport. Suddenly, we are beginning to create what the Manchester Evening News has dubbed the “circle line”. That is a way to use public transport to create proper interconnectivity across Greater Manchester, just like the M60 motorway currently provides for car users. That would be a fantastic boost for many people accessing jobs and for our local economy and tourist industry.

All that would also give Oldham a critical part to play as an important transport hub. It would not just be the place that people pass through; it would mean that Oldham Mumps, which is currently a strategic regeneration site, would be a critical point of interconnectivity between Bury, Rochdale, Manchester and Tameside, and perhaps further on if we have further extensions. Oldham would become an important place for investment and regeneration, and I believe it would be an important catalyst for the rebalancing of the Greater Manchester economy.

To achieve all that, we need to be honest. Currently, financial modelling is heavily predicated on the question, “What does this mean for GVA return?” If we invest £1, what will be the pound-for-pound return in the local economy? This is where the way in which we assess capital investment in this country needs a fundamental rethink. There ought to be a measure to take human capital into account.

What is our starting point if we want everybody to have equal opportunity to access well-paid, secure jobs and decent leisure and sporting facilities? To do that, we need to accept that different communities in Greater Manchester will start at different points and that a rebalancing will need to take place. It is important to bear in mind that we can rebalance in two ways: we can bring the highest-performing area down to the level of the lowest-performing area, so that they are equal but have to share scraps of the table, and the economy will suffer; or we can use investment to raise areas that are not currently performing as well as they could be, so that everybody thrives across Greater Manchester.

To achieve that second option, we need a different way of assessing GVA return, because the truth is that on any assessment today, building a mile of Metrolink track in, say, Trafford would have a higher GVA return than building a mile of Metrolink track in Oldham, just because the starting point is very different. I do not believe that that is the way to generate an investment plan that rebalances the economy in the way we need it to be rebalanced.

This debate is about setting out a potential route, but I am not precious about exactly which road or route the new tram line ultimately goes along. I am, though, passionate about Oldham realising its full potential. I am passionate about people in Oldham being able to access high-performing, decent, secure, well-paid jobs throughout Greater Manchester. I am desperate for young people in Oldham to recognise that their horizon is not just at the end of their street, but is much further away, and for it to be available to them because it is affordable and accessible.

Let me tell a personal story. I have been helping my son to navigate the complex world of apprenticeships and college courses. We were looking at some apprenticeships in Trafford Park, which is not far away at all—we can get there by car in half an hour. My son was looking at engineering courses. The problem is that our bus system does not connect young people with Trafford Park in a way that means they can work shifts on those jobs. For instance, if a young person living in Royton wants to get to Trafford Park for a 6 am shift start, they would have to set off at 11.30 pm the night before, because the buses do not start until quite late in the morning. Therefore, if a young person cannot get a driving licence and a car to make their own way there, and they are reliant on public transport, which for people in Royton is a bus at the moment, straight away they are excluded from working shifts in one of the largest engineering employment locations in Europe. That just cannot be right.

I am not saying in this debate that if all we do is to build a bit of Metrolink track, Oldham will be fixed. My point is much broader: we need to get transport in Greater Manchester right for the people who live in Greater Manchester. Significant effort has been made by the mayor of Greater Manchester, Andy Burnham, and by his team on the Greater Manchester combined authority. Sterling work has been carried out by Andrew Fender and by all the very dedicated officers that work at Transport for Greater Manchester. The truth is that much of this comes down to resource and investment. Unfortunately, in Greater Manchester, we have lost many local bus routes that would connect young people in particular with the job opportunities of tomorrow, and we need to see investment in that area.

We also need proper capital investment that at least puts Greater Manchester on a par with London. We want Greater Manchester to thrive and to play an active part in the northern powerhouse, but the northern powerhouse cannot be done on the cheap; it needs investment on a par with that of this great capital city. Manchester deserves absolutely every penny of that investment. If we see even a fraction of it, we will see very different outcomes for young people in Greater Manchester.

I urge the Government to get behind this. I am not necessarily talking about the A to Z route that we are proposing—that will come out of a feasibility report and a technical assessment of what is possible and, of course, it has much to do with patronage and whatever physical barriers may be in place. There should be no barrier to our desire to make Greater Manchester absolutely great. That can happen only if the Government come to the table, offer real investment and work with Greater Manchester to make sure that transport in the future is far better than it is today.

--- Later in debate ---

[Jesse Norman]

What a joy. In that case, I can extend my speech. I am very glad to hear it.

When I read the name “Jim McMahon” I thought that it was referring not to the hon. Member for Oldham West and Royton (Jim McMahon), but to one of my great heroes, the former quarterback for the Chicago Bears and, latterly, the Green Bay Packers. My sense of excitement on being invited to respond to him and my sense of delight that he was taking an interest in the transport issues of Greater Manchester was absolutely intense. However, my sense of delight is no less great in having this opportunity to respond to the hon. Gentleman, who was himself an award-winning leader of Oldham Borough Council.

If I may say to the hon. Gentleman, he is a little confused about some of the responsibilities involved in his area. For buses, he is very welcome to address himself to Andy Burnham, who has responsibility for buses. Indeed, he has enhanced powers under our new legislation. He has rightly addressed the subject of the Manchester Metrolink system. Everyone in this House who has travelled on the Metrolink—I was travelling on it recently myself—will agree that it has been a colossal success for the conurbation. I absolutely agree with him, and, as a member of the Government, I pay tribute to Councillor Andrew Fender for the work that he has done over the past 41 years. Opinion is divided in Manchester as to whether he should be regarded as Mr Metrolink, or just Mr Transport. Whichever it is, we congratulate him, and the hon. Gentleman’s point was very well made.

As the hon. Gentleman knows, transport is of enormous importance to this Government—absolutely in the north-west and as part of the strategic development of the north as a whole. We very much agree with local partners that transport is essential for growth, which is why we are investing significantly in local and regional transport infrastructure, including £15 billion for the strategic road network and £6 billion for local schemes through the local growth fund. This investment is designed specifically to drive the economic growth that we wish to see, to allow the other opportunities that come from transport including the social and family benefits, and to relieve the economy—at least temporarily—from the effects of congestion.

As the hon. Gentleman knows, we are creating a northern powerhouse to rebalance the economy, and that is a shared aim. The reason for creating Transport for the North as an entity was specifically to provide a local voice that could convene and gather those different projects and schemes—that total regional ambition—into one place that would support economic growth in the north. We will invest £13 billion during this Parliament to connect the region better, so that northern towns and cities can pool their strengths and create not a series of city economies or regional economies separated by geography, but a single powerhouse economy. Of course, Greater Manchester is at the heart of that.

[Jim McMahon]

I accept all those points. The event that we attended in Manchester with the Northern Powerhouse Minister was very much in the spirit of working together across party political lines in order to get the best outcome for Greater Manchester, but I made a point at that meeting that, when HS2 is in place, it will take the same amount of time to get from Manchester to London as it does to get from Royton to Trafford Park. Those local connections are vital if we want the economy to thrive.

[Jesse Norman]

Yes, that is an interesting and well-made point. Of course, it is true that every journey begins with a local journey unless one happens to live in the terminus. It is also true that, as with the Metrolink, the secret of HS2 is a capacity story, as much as it is a speed story. As the hon. Gentleman has well said, the capacity of the Metrolink has greatly increased over the last few years, and that is one measure of its great success.

As the House will know, Greater Manchester has seen a revolution in its public transport over the past few years. Through the innovative Greater Manchester transport fund, which combined local funding with significant support from central Government, as well as real support from the local growth fund we have seen the introduction of bus corridors including the Oxford Road bus corridor, which is believed to be the busiest in Europe; the Leigh-Salford guided busway; new bus stations and multimodal transport interchanges across Greater Manchester; and a step change in support for cycling and walking. I pay tribute to the Mayor of Greater Manchester for the work that he has done with Chris Boardman in reimagining the possibilities for walking and cycling across the whole area. It is something that Chris and I have worked closely on and that the Department fully supports.

The Chancellor confirmed in his spring statement last week that a further £243 million from the transforming cities fund is being provided to the Metro Mayor of Greater Manchester to support public transport, improve sustainable travel and boost local productivity. This again demonstrates the Government’s strong commitment not just to Manchester, but to mayoral combined authorities.

Although rail is not my specific brief, it is worth saying that the great north rail project has allowed us to upgrade Manchester Victoria and connect Manchester’s three main railway stations for the first time through the Ordsall Chord project. Over the next few years, the chord will provide new and direct links to Manchester airport from across the region, and will free up capacity at Manchester Piccadilly. We have delivered upgrades and electrification between Liverpool and Manchester, and cut the fastest journey time by 15 minutes since 2015. We have also upgraded the route between Manchester and Wigan, and are currently delivering a comprehensive package of route upgrades and electrification across the north-west and Yorkshire, including between Manchester, Bolton, Preston and Blackpool. Of course, the success of the Metrolink has been at the centre of this development, as the hon. Gentleman rightly acknowledged. This started in 1992 with the opening of the first phase between Bury and Altrincham and has continued through to the current construction of the Trafford Park extension. The first extension, to Eccles in 2000, linked Salford to the city centre.

In 2008, Metrolink embarked on a £1.9 billion investment programme that transformed the network and its service. It tripled in size, providing improved connectivity to jobs, retail and leisure opportunities for communities across the region. New park-and-ride facilities made the network even more accessible and have helped to reduce traffic congestion across the region, while customer facilities have been upgraded and a brand new fleet of trams has been introduced. Extensions were completed to Chorlton in 2011, to East Didsbury, Droylsden and Ashton-under-Lyne in 2013, and, as the hon. Gentleman will be aware, to Oldham and Rochdale by 2014. I congratulate him on his timing in arriving at Oldham Council in time to take credit for many of the successes that were about to occur. That is always a good quality in a politician.

In addition, the Airport line was opened in 2014, winning the civil engineering achievement of the year award at the prestigious national rail awards in 2015. Other improvements have included the short extension to Media Village and, more recently, the Second City Crossing. The latter project is a short but important route designed to alleviate congestion and improve capacity by providing a second route through the city centre. It is already helping to improve the reliability and resilience of the network and allowing it to be operated to its full extent. The most recent development, however, is the construction of the Trafford Park extension, which is currently under way. This has been funded in part as a result of the devolution deal with the Greater Manchester combined authority, which gives the city the greater certainty it needs to invest in this, and other, important local schemes. This scheme, worth £350 million, will link some of Greater Manchester’s busiest visitor destinations as well as running through Trafford Park—Europe’s largest trading estate and home to more than 1,400 businesses employing over 33,000 people. Services are expected to start in 2020.

The result of all this investment and exciting development is that Metrolink is now the largest light rail network in the UK, with 93 stops along 57 miles of track. It is a model of what can be done with steady and sustained investment. It is a public transport network that passengers are using in large numbers, with 37 million passenger journeys in 2017—an increase of 10% on the previous year. That is a massive success overall and a reason why investment continues both from the Government and from the combined authority’s own resources in order to make it happen.

I am aware of the hon. Gentleman’s continued support, which he has made very clear, for further extensions to the Manchester Metrolink system such as the Ashton loop line from Ashton town centre to Oldham, and a spur to Middleton linking up to the Bury line to create an orbital line across the north and east of the conurbation—a “circle line”, as he has described it, at least in potentia. Indeed, he spoke on this topic in his maiden speech on 19 January 2016. The future development of the network is a matter for the Mayor of Greater Manchester, the combined authority, and Transport for Greater Manchester. I understand that the combined authority has a number of ideas about future expansion, including possible routes to Stockport, and a loop around Wythenshawe linking into the proposed HS2 station at Manchester airport, as well as, in the longer term, a possible third link across the city centre.

I congratulate the hon. Gentleman on putting this issue squarely on the public agenda once again. It faces local constituency interests and authorities as much as it faces central Government. For our part, we are currently considering a bid for funding from the large local majors scheme fund for a short extension of the existing Airport line to the expanding Terminal 2, which would ultimately be part of the Wythenshawe loop. We will announce a decision on that fairly soon. I also understand that Transport for Greater Manchester is looking closely at using tram-train technology. The current project to provide this between Sheffield and Rotherham should provide useful lessons on how this type of technology—potentially very useful and highly applicable—could be used elsewhere.

The Government will continue to work with the combined authority as it develops its strategies, and we will continue to consider future bids for funding. Greater Manchester has shown that it is also able to make use of its own resources and those of third parties to develop extensions without direct Government funding. I applaud that, but there is clearly merit in continuing to co-operate and work closely together on these big infrastructure projects.

The Metrolink system is only one of the light rail systems in this country. Our view on this development in transport is very simple: we support it and think it has massive benefits. We have already seen the impact of better integrated transport links for both passengers and the local economy in cities such as Nottingham, Birmingham and, as we have heard today, Manchester. In all three, the light rail system has become an integral part of the transport network. We have supported it because we know that it is part of a strong and resilient economy.

The new £1.7 billion Transforming Cities fund recently announced by the Chancellor will provide funding for more light rail schemes, which will help to drive productivity and growth in cities where it is most needed, connecting communities and making it quicker and easier for people to get around. The new fund will enable more English cities to reap those benefits, helping to deliver the opportunities and ambition of the industrial strategy across the country.

The joy of a light rail system is not merely that it supports an integrated transport network, which reduces congestion, but that it is good for air quality and very environmentally friendly. It is a green form of transport, which makes locations better places to live, not just better places to get to. We have seen evidence that implementing a light rail system helps to stimulate long-term employment growth and attract inward investment, boosting local economies. It can also bring in tourism and give a sense of place and distinction to an area—even one as already distinguished as Oldham.

I have seen examples of the transport system being a key consideration of companies wishing to invest. Few companies these days do not think about transport when deciding where to locate their main offices or even satellite offices. They know that light rail is popular with its users, and that is reflected in the statistics published by the Department for Transport, which show a record number of passengers using light rail. Passenger numbers continue to rise in England, to a record 267 million since records began in 1983. Independent figures also show passenger satisfaction riding high at around 93%, and 90% on the Metrolink.

However, we also have to be realistic and acknowledge that light rail is not necessarily suitable for every place. Each place is different and has its own demands, needs and interests. We feel that there is scope for the sector to look more closely at how light rail can integrate with future forms of transport, such as driverless cars and other forms of mobility, as a service. The Government will continue to work closely with the sector across all of these modes to help bring about the improvements we all want to see in this area.

The Manchester Metrolink has been a great success. It has improved connectivity, access to jobs and retail and leisure opportunities for communities across the region. That has been made possible by the combined commitments of significant local transport investment by central Government and investment made through the combined authority. We are confident that the Metrolink system will continue to play a key role in the future success of Greater Manchester, and I am delighted that this issue has been placed firmly on the public record by the hon. Gentleman.

Question put and agreed to.

Highways England Compensation: Broadway in Chadderton

Jim McMahon Excerpts

Wednesday 26th October 2016 Westminster Hall

[Jim McMahon (Oldham West and Royton) (Lab)]

I beg to move,

That this House has considered Highways England compensation payments for residents of Broadway in Chadderton.

This is my first Westminster Hall debate, Ms Dorries, and it is a pleasure to speak in it under your chairmanship. I will set out why I felt it was necessary to call for this debate, and the history of the scheme, before asking the Minister to respond to the concerns expressed repeatedly by residents living in the area. The issue has been going on for some time, and was previously dealt with by the right hon. Michael Meacher, before he passed away. I have come to it towards the end of the scheme. I am hoping that my speech will be received positively. People affected by the scheme might be watching the debate, and they are hopeful of some conclusion to a long-standing issue.

To provide some context, Oldham is a young town, and demand for school places is significant. A determined effort by the local council has seen many new schools built, with the support of Government. The John Henry Newman College is one of them. It was formed from Our Lady’s School in Royton and the St Augustine School in Oldham. The new school is now home to 1,400 pupils.

The new school site at Broadway was selected after a thorough assessment and, despite legitimate concerns about the impact on traffic and highway safety, local people by and large supported the project. The issue has been long and drawn out, however, with delays over site selection, the possibility in 2010 of funding being cancelled and, after the eventual building of the school, the ongoing fight for compensation payments by residents living near the site.

The scheme consisted of the construction of a signalised junction to create a new access to the site of the school that was being built. To facilitate that, the road needed to be widened with additional lanes, and a cutting had to be made into the parapet where the properties are in a significantly higher position than the road. The scheme required dedicated turning lanes and new signalling works, lighting and road markings. However, no measures to reduce noise or the visual impact of the scheme were put in place. As we can imagine, for example, the headlights of cars exiting the site shine directly into the windows of the house opposite, where previously there had been no road junction.

The road, to put it into perspective, is the A663, a busy trunk road that becomes the A627(M) motorway, which in turn connects the M60 Manchester orbital motorway to the M62. The road carries about 30,000 vehicles a day and, according to the Department for Environment, Food and Rural Affairs noise chart, the location under discussion has prevailing road noise levels in excess of 70 dB both day and night.

The properties in which my constituents live have been the subject of previous compensation claims. Those properties are predominantly brick-built, semi-detached houses with pitched slate or tile roofs, usually dating from the post-war period. As the House will appreciate, where properties are so close to the road and at a higher level, they are particularly affected by noise, including the noise of cars standing at the traffic lights with their engines idling. That noise travels up—a problem in addition to the headlight problem I mentioned.

Those affected by the scheme rightly sought compensation under part I of the Land Compensation Act 1973. Evidence was supplied of previous Lands Tribunal decisions by professional experts highlighting similar schemes, including two that were agreed with the solicitors of some Broadway residents and the Highways Agency working with other residents. Evidence of other schemes for which property devaluation agreements were in place was supplied.

I had hoped to meet Highways England staff, but I am afraid that I was put on a Bill Committee because of my new Front-Bench responsibilities, which did not allow a meeting to happen. Notwithstanding that, a long series of correspondence took place between the highways body and Michael Meacher, when he was here. Local councillors who have been leading and supporting local people have been involved.

In similar schemes, the loss of value of properties has been accepted. No two schemes are the same, and any assessment of compensation payment will always look at the individual scheme on its own merit—I accept that completely—but it is important to highlight nearby schemes in which A-class roads have been widened and traffic lights installed, resulting in compensation payments. The Lands Tribunal decision on a new junction for the Parrs Wood scheme in Manchester returned a maximum of 7%; on a road widening scheme just up the road at Hunt Lane, Broadway, the maximum was 5%; further on again, on a road widening towards Middleton Road, Broadway, the maximum was unknown; and on the new junction improvements on the A56 Chester Road at Helsby, the maximum was 7%.

Given the location under discussion, clear evidence suggests that properties have reduced in value as a result of the road widening scheme. I will refer to two properties in particular—properties A and B. Property A is an extended and substantially modernised four-bedroom, semi-detached house, which sold for £175,000 on 20 March 2014. The same property sold for £200,000 on 14 August 2007. Between 2007 and 2014 that property had decreased in value by £25,000—that is a matter of public record. Property B, also on Broadway, is a three-bedroom, semi-detached house, which sold on 18 October 2013 for £156,000. On 6 January 2008, it was purchased for £165,000. That property too was sold for less than its purchase value only a few years earlier as a direct result of the market conditions following the road widening.

Moreover, the residents applied for their council tax to be re-evaluated to take into account the change in the neighbourhood. In 2012, the valuation office made the decision to reduce the council tax banding. The Highways Agency was aware of that, but refused to acknowledge any relationship between the road widening and that decision, which is contrary to the correspondence that took place at the time.

To conclude, I am hoping that the issue is straightforward. The scheme should have been really positive—a brand-new school was constructed, which provides a fantastic educational facility for local children, with 1,400 of our young people benefiting, but it required engineering that has affected people who live nearby. Local people accept that the school is a positive contribution to the town, but if their property value has been affected as a result, clearly compensation payments should be made.

The school and the necessary engineering works required public investment of about £30 million and, given that context, the compensation payments requested are minor, but for someone whose property value has been affected the amount is significant. The issue has gone on for far too long. Today, I would like to make progress and to get some resolution so that residents can get on with their lives instead of entering a drawn-out tribunal process, which will cost them quite a lot of money and take even more time, when this is a straightforward matter.

[The Minister of State, Department for Transport (Mr John Hayes)]

It is, as ever, a delight to be in your presence, Ms Dorries, and to serve under your diligent chairmanship. It is also a delight to welcome the hon. Member for Oldham West and Royton (Jim McMahon), as a newish Member, to his first debate in the Westminster Hall Chamber. I congratulate him on securing the debate, which follows the work of his predecessor, a distinguished Member of this House who served his constituents for a very long time.

Ms Dorries, might I offer the hon. Gentleman, through you, some advice that he seems already to have followed, even if he has not heard it? When approached by constituents about these kinds of things, you and I try to put ourselves in their position. We try—I know that this is true of the way that you serve your constituents, if I might say so, and it is certainly the way that I serve mine—to imagine how we would feel in similar circumstances. We ask, “What would we feel like if this were our home, our community and our family’s interests?” That is precisely what he has done in bringing this debate to the Chamber, and I commend him for that. It seems that he did not need my advice, but I offer it anyway, as a more experienced Member to a newer one.

Given the overtures that were made by the hon. Gentleman’s predecessor, this case is familiar to Highways England and my Department. As he says, it concerns the A663 at Broadway, a busy urban trunk road linking the M60 with the A627(M) and the M62. It is an important link between Oldham and Manchester and forms part of the strategic road network, for which Highways England is responsible.

As the hon. Gentleman will be aware, the local authority, Oldham Council, constructed a new school, the John Henry Newman College, on previously disused land close to the road-widening scheme. It is wonderful that the college should be named after that great man, who by the way is one of my heroes—we do not have time to discuss that at length. None the less, the council, having agreed in response to local demand to construct that new school, was obliged to make changes to the road, and those changes are the alterations to which the hon. Gentleman referred. The changes were designed to allow safe access to the site, and the council took powers under section 6 of the Highways Act 1980, which allows local authorities to make such changes to the strategic road network where such a development is taking place.

It is worth listing the improvements that were made. They included the construction of a new signalised junction, giving access from the A663 to the new school; the widening of the carriageway and the construction of a new footpath; the creation of dedicated turning lanes into the school from both northbound and southbound directions; and the construction of central islands to help pedestrians cross the road. Improvements were also made to the road itself. The junction between Broadway and Foxdenton Lane further south of the school was improved, including by widening the carriageway on all four arms of the junction and improving pedestrian refuges. As the hon. Gentleman will know, all those alterations were completed by around September 2012.

Following the completion of those works, a formal submission was made by a land claims agent representing the interests of 32 households. Compensation was claimed under part 1 of the Land Compensation Act 1973 for residents living close to the new access to the school. On that occasion, Highways England did the proper thing and sought advice from a valuation consultant on the changed property values. Indeed, it went further than that and sought advice from two experts in that field, because it felt that that was the right thing to do.

[Jim McMahon]

The Minister is quite correct in his assertion that two separate experts were selected, but can he confirm that those experts were both in-house, not independent of Highways England?

[Mr Hayes]

They were valuation consultants, who are accustomed to dealing with these things and in so doing adopted the appropriate empiricism—indeed, that is their stock in trade—to gauge whether the changes in the values of the properties that the hon. Gentleman has suggested took place could be attributed to any of the environmental factors that would entitle the 32 households to compensation, such as increased vibration, increased noise or even light pollution from headlights shining into homes. Those experts would have taken those things into account, though he will have some good news at the end of my short but fascinating speech along the lines that he has just implied.

The problem is that when those tests were applied, the claim was found wanting. The hon. Gentleman has made the case that the value of the houses has fallen, and I am not in a position to dispute that.

[Mr Hayes]

Ms Dorries, I never remove my jacket, except in the most extreme circumstances. One of those is playing competitive sport, and as I am not doing so, I will not remove my jacket, but I am grateful for your typical generosity and indulgence in giving me permission so to do should I wish to.

As I said, the valuation that was done does not necessarily contradict the hon. Gentleman’s assertions. He has provided evidence that values have indeed fallen, but I suppose the point that I was making—for the sake of emphasis, I make it again—is that according to the expert analysis, the criteria on which compensation could rightly have been paid, according to the basis that applies to all similar schemes, were not met. In essence, that means that there was no loss in property value as a result of the physical factors—I described them earlier as environmental factors—arising from the alterations to the A663. The question is really whether any loss in value met the necessary terms and conditions set out in the Land Compensation Act 1973. In truth, the A663 was already a busy urban route, and a signalised pedestrian crossing was already in place on that road before the roadworks were undertaken. The new access to the school is not in constant use but is used largely at the beginning and end of the school day, as can be expected.

The hon. Gentleman understandably made a point about council tax banding. I was aware of that point. However, it is clear from the council tax decision notice issued by the local authority that the rebanding was due to the presence of a new school rather than the road improvement scheme. Highways England fully accepts its obligations under the 1973 Act and never seeks to deny the payment of compensation that is due, but it has no power to pay compensation that it does not consider to be payable statutorily. Highways England has accepted the views of its valuation consultants and no claim has been paid with regard to the A663 junction improvements, and he will know that the claimants were advised accordingly in March 2015. He made reference to the possibility of appealing, and he will know that the Act allows a claimant who disagrees with the amount of compensation offered by the relevant authority—in this case Highways England—to refer their claim to the lands chamber of the upper tribunal for independent determination. Claimants have until 25 September 2019 to make reference to the tribunal in this case.

As is my wont, I am going to go a little further than I have been advised to do. As I said at the outset, I have been impressed by the hon. Gentleman’s diligence in bringing this matter forward, and I was an admirer of his predecessor, as I have also made clear. If I—like you, Ms Dorries, and the hon. Gentleman—put myself into the place of those affected, I feel a duty to share his and their perspective as much as possible. My second piece of advice to the hon. Gentleman, therefore, is that he obtains a further independent assessment of whether the alleged loss of value can in any way be attributed to the work that has been done and therefore fits the criteria laid out in law. If he brings that to me directly and personally, I will commit to looking at the matter again. That would not oblige the residents to seek a tribunal hearing, which I appreciate is expensive, and it would give him an opportunity to take the matter further. If the criteria cannot be met—or if evidence cannot be brought that they may be met—it will clearly be difficult for me to help him or those residents.

The hon. Gentleman wants to do the right thing by those residents, and I do, too. These debates must have a purpose in holding Ministers to account and encouraging them to go the extra mile to support colleagues from across the Chamber in representing the wellbeing and interests of their constituents.

[Jim McMahon]

rose—

[Mr Hayes]

That was my pre-peroration. Before I move to my exciting peroration, I give way once more.

[Jim McMahon]

I thank the Minister for giving way. Given that I do not get to come back at the end of the debate, I should take the opportunity to say that I find that very constructive. I am thankful on behalf of the residents of Chadderton for the opportunity to present that assessment at a future date.

[Mr Hayes]

It is my willingness to be constructive that has built the solid reputation I enjoy on the Opposition Benches, in which I take such great pleasure. I am grateful to the hon. Gentleman for his complimentary remarks and look forward to hearing from him further on this important subject for his constituents.

Question put and agreed to.

Transport

Jim McMahon Excerpts

Friday 29th January 2016 Ministerial Corrections

The following is an extract from Questions to the Secretary of State for Transport on 28 January 2016.

[Jim McMahon]

I share the Minister’s appreciation for the staff and for the patience of passengers, but I think the point is being missed. Because money has been taken away from routine maintenance and flood defences, there has been a massive effect on our local economy. If an assessment has been carried out, surely it should be made public.

[Claire Perry]

I am afraid that I have to disagree with the hon. Gentleman’s facts, although I hate to do so at his first Transport questions. The Government have announced that overall flood spending in the next period will be £1.7 billion higher than it was in the previous period. Within the transport budget, about £900 million is dedicated to things like making sure that the banks and cuttings are safe—those things that are often the first to go when there is heavy flooding. Improving the resilience of the rail network and making sure that it is fit for a 21st century climate are at the heart of the record level of investment that this Government are putting into the railways.

[Official Report, 28 January 2016, Vol. 605, c. 402.]

Letter of correction from Claire Perry:

An error has been identified in the response I gave to the hon. Member for Oldham West and Royton (Jim McMahon) during questions to the Secretary of State for Transport.

The correct response should have been:

Oral Answers to Questions

Jim McMahon Excerpts

Thursday 28th January 2016 Commons Chamber

[Mr Goodwill]

I know that particular communities around the country are affected by noise. Mitigation can often be put in place by using better road surfacing materials or noise barriers, and it may well be that something could be done in that area. I suggest that the hon. Gentleman gets in touch with the Under-Secretary of State for Transport, my hon. Friend the Member for Harrogate and Knaresborough (Andrew Jones)—he has responsibility for roads—who will no doubt be very happy to meet him.

[Jim McMahon (Oldham West and Royton) (Lab)]

7. What assessment he has made of the effect of disruption to rail lines caused by the recent winter floods on the economy.

[The Parliamentary Under-Secretary of State for Transport (Claire Perry)]

Just days after the hon. Gentleman’s election, he will have seen for himself the impact of the transport disruption caused by this winter’s unprecedented weather conditions. I am sure he will join me in paying tribute to Network Rail’s orange army, who managed to get the west coast main line opened within four days of its being flooded with 8 feet of water. We remain absolutely committed to getting all such lines back up and able to run a full service safely as soon as possible. I am sure he would also like to join me in thanking passengers for their patience during this time.

[Jim McMahon]

I share the Minister’s appreciation for the staff and for the patience of passengers, but I think the point is being missed. Because money has been taken away from routine maintenance and flood defences, there has been a massive effect on our local economy. If an assessment has been carried out, surely it should be made public.

[Claire Perry]

I am afraid that I have to disagree with the hon. Gentleman’s facts, although I hate to do so at his first Transport questions. The Government have announced that overall flood spending in the next period will be £1.7 billion higher than it was in the previous period. Within the transport budget, about £900 million is dedicated to things like making sure that the banks and cuttings are safe—those things that are often the first to go when there is heavy flooding. Improving the resilience of the rail network and making sure that it is fit for a 21st-century climate are at the heart of the record level of investment that this Government are putting into the railways.[Official Report, 29 January 2016, Vol. 605, c. 3MC.]

Cost of Public Transport

Jim McMahon Excerpts

Tuesday 19th January 2016 Commons Chamber

[Jim McMahon (Oldham West and Royton) (Lab)]

Thank you, Mr Deputy Speaker, for allowing me to make my maiden speech in this debate.

First, I should pay tribute to Michael Meacher, not simply because it is customary to do so, but because Michael was a dear friend to the people of Chadderton, Oldham and Royton. He will be missed and remembered locally, and by Members of this House, for decades to come.

I thank the voters of Oldham West and Royton for putting their trust in me as their representative here. I will work hard to make sure that I live up to that trust, along with my colleagues. From a Labour party point of view, we have shown what we can achieve when we pull together as a family. The result was very impressive for the Labour family.

As I stand here today, I reflect on the remarkable story—I would say that, wouldn’t I?—of a young boy from Miles Platting in Manchester who is now standing here in the House of Commons. The street where I grew up as a child no longer exists, but the values of hard work and courage instilled in me by my parents remain.

The borough of Oldham and its seven towns, with their culture, community and comradeship, have played a defining part in the history of our country. Oldham’s values of hard work, grit and integrity speak to the heart of British values—values that are exemplified in all of Oldham’s great and diverse communities today.

Chadderton secured its historical place through aviation, among other things. It made the world-famous Lancaster bomber. In its heyday, the Greengate site employed 20,000 people. When its doors closed in 2012, the 1,500 staff who remained moved out. That was a very sad day for the people of the town.

Our engineering and manufacturing base included the world-famous Ferranti, which was famous for making the components for the world’s first computer, and Platt Brothers, which was once famous for being the largest engineering plant in Europe. Both are now gone.

Royton has a little in common with this place. You may remember the rhyme, Mr Deputy Speaker, “Remember, remember the 26th of November”—26 November 1884, that is, when the gunpowder plot unfolded in Royton town hall, blowing off the windows and doors. Interestingly, it was led by a gangmaster who was campaigning against measures in the Factory Acts that banned children under 10 years old from working in the mills.

Many people here will know Oldham as an industrial giant, and it was. It was the king of cotton. In its heyday, the town spun more than 17 million spindles, which was more than the whole of the United States and 80% of the total number in the UK. For too many people, the Oldham of yesterday was built on exploitation, with very little regard for quality of life or fairness. People came from countries right around the world to make a better life for themselves, but do you know what the truth is? People struggled. They struggled in desperate poverty, while a lot of the money left town.

The exploitation did not stop in Oldham. Feeding the 17 million spindles required a lot of cotton, which was picked in the fields of the American south. As the machines raged on in 1860, it took 200,000 black slaves to pick enough cotton to feed the mills. So there was exploitation at home, exploitation abroad, and with the money taking leave from the town.

Today, hard-fought battles for better living standards, a welfare state that is there when people need it, and decent homes, are being eroded. People are seeing vital services—in some cases their lifeline—being taken away. For too many people, work does not pay and they cannot make ends meet.

People might think that I am painting Oldham as having been beaten, but mark my words: we are far from beaten. We have courage and determination. If our past successes were built on the industrial revolution, our future will be secured through solid hard work—an industrious revolution. Our town is going from strength to strength. We are rebuilding, attracting investment and creating new jobs. We can be proud of what we have achieved in recent years, but too often it feels as if we are doing it alone, and it should not be that way. Devolution must be more than a love affair with the big cities; it must deliver and provide a decent settlement for towns and districts. I want Oldham to flourish and to be the place we know it can be—a place where my sons, Jack and Harry, and the other 57,000 young people will be proud to call home.

With new powers devolved to Greater Manchester, the challenge is not simply one of good administration, but also of strong political leadership. We have shown that we can get things done. The continued expansion of the Metrolink tram system will certainly accelerate economic growth. We must also push for the future and for cross-borough expansion, and I will use this opportunity to lay down a marker for the Ashton loop line from Ashton town centre to Oldham Mumps, and for a Middleton spur from Oldham Westwood through Middleton and on to the Bury line, connecting the north-east conurbation of Greater Manchester. [Interruption.] The Secretary of State will realise that until Friday I was the council member responsible for transport in Greater Manchester, although given his interest in the northern powerhouse, our paths never crossed. [Laughter.] Perhaps he will be charitable in return, given that this is my maiden speech.

As we rightly fight to end the north-south divide in the UK, we know that infrastructure investment can help address Greater Manchester’s own north-south divide. Such investment would benefit not just Oldham, but Rochdale, Tameside and—importantly—the north of the city of Manchester. As we rightly point out the imbalance in the UK, we cannot ignore domestic matters closer to home in Greater Manchester. For every 10 jobs that were created in south Manchester in the last decade, only one was created in the north of the conurbation. We cannot carry on like that if devolution is to be a success.

I believe in devolution and will continue to fight for power to be moved away from Whitehall to empower communities—to be honest, devolution as it stands today does not empower those communities. As the former leader of Oldham Council, I worked with others to rally support for devolution to Greater Manchester, and I worked hard to ensure a clear vision for Oldham. It was important to sign up to the deal with the Chancellor, because it is far better to have devolution on terms that we do not necessarily agree with, than to have no devolution at all. It would also be wrong not to challenge where we know that things do not work, and not to push harder when needed.

Without a clear national framework for devolution, it is for the Chancellor to pick and choose who he deals with and what is on offer. The hallmark of devolution so far has been a Treasury power grab from other ministries. The Chancellor had the opportunity to devolve real financial freedoms, but he chose not to. He is quick to give away the power of his fellow Ministers—I am sure Conservative Members will be concerned about that—but evidence suggests that he is not that keen on giving away his own power. Without genuinely reforming central Government and addressing fair funding, the northern powerhouse as a brand is meaningless.

People in Oldham see that the magistrates court and the county court are closing. We do not have a single police custody cell open for a town of nearly 250,000 people. People see youth centres closing, libraries closing, day care centres closing, thousands of staff displaced or sacked, and our positive endeavours for regeneration blocked by central Government. And we are meant to be at the heart of the northern powerhouse!

The political challenge of our time is not how we divide to rule, but how we unite and forge a future where every man, woman and child sees that they have a stake in that future; where there is more to life—there has to be more to life—than just getting by and making ends meet. Oldham MP Winston Churchill once said:

“no one can come into close contact with the working folk of Lancashire without wishing them well”.

I agree with that; it is true. But well-wishers alone are simply not enough. The dark satanic mills that marked the skyline in Churchill’s time have by and large now gone and we are a long way from realising our own Jerusalem. Friends, let us not cease from mental fight, nor shall our swords sleep in our hands, till we have built Jerusalem in Oldham’s green and pleasant land.