Railway Expansion

John Pugh Excerpts

Wednesday 27th April 2011 Westminster Hall

[John Pugh (Southport) (LD)]

It is a pleasure to serve under your chairmanship, Mr Robertson. I want to talk about a number of schemes associated with such places as Colne, Skipton, Bidston, Halton, Burscough, Todmorden, Fleetwood and so on—places that I know flummox Hansard reporters, so I will give some clarification on those at a later stage.

I would like to start with a largely unquestioned truth that I think most people will buy into, which is that connectivity between centres of economic activity further stimulates whatever economic growth and activity one gets there. I am also happy to agree with anybody who suggests that growth cannot be stimulated simply through connectivity—by building a railway line or a road. A classic example in the north-west is Skelmersdale, which has an excellent motorway joining it to the rest of the world, but which still has a very poor economic performance.

In the past, in bolder days, it is true that Governments built roads to nowhere and built rail tracks that are not used. Private developers also have a sharper eye for what needs to be done. Normally, however, one connects areas on the assured assumption that people or goods will want to travel along the line of connection. In the beginning of rail, the assumptions that were made were very bold indeed. People built trains out into the wild west in the United States. They built trains through the south American jungle. I have even been on a train through a mountain in Switzerland. I am not sure that the Department for Transport would consider such a project in these days, but certainly people were very bold and imaginative. They even built train services—very good train services, at one stage—to the English coast, although they have curtailed some of those in recent years.

They were all, by and large, high-risk ventures with potentially high returns. Increasingly, as time went on, private developers got less of an appetite for that and the state was expected to shell out more to fund, subsidise and back whatever rail infrastructure was put in place. Of course, with state involvement came a gradual sense of entitlement. People feel entitled to connections, whether by road or by rail. In many parts of the country, where the rail connections have gone, they grumble and have grumbled for many decades since they departed. There is, however, an acceptance by most people that the quality of the connections, whether by rail or road, have something to do with the size of the place and how isolated it is.

In the early days of rail it soon became apparent that they had one very big competitor—roads. Roads are an obvious substitute. Certainly, in the 1940s and 1950s roads were seen as an almost lethal competitor, and so we got what we call, or might be regarded as, a managed contraction—an ill-managed contraction—under the much-defamed Dr Beeching. I say it was ill-managed because all sorts of peculiar things were done. For example, Blackpool was deprived of a railway line simply because not enough people bought tickets in Blackpool. The fact that thousands and thousands of people bought tickets in Glasgow to go to Blackpool and then return did not seem to affect the planning they engaged in then.

We have inherited that structure, which did not necessarily occur for the right reasons and not necessarily on a wholly rational basis. In turn, we have had to pick up the economic consequences that that structure gives us. Since then, clearly, there have been changes. Some changes are favourable to rail development, some not so. Recently we have seen oil prices rise and road congestion become an increasing worry to Governments of whatever persuasion, and we have seen environmental concerns move to the front of the stage. Counter to expectations—it was assumed that rail was in decline—we have seen that, despite prices, an element of overcrowding and occasional poor reliability, rail use has increased dramatically. I saw the first transport plan during the course of the previous Government, and even that predicted a decline in train use that was never fulfilled. People were genuinely surprised—I was on the Transport Committee at the time—to see that trend reverse. It did not just reverse as far as passenger traffic was concerned, but for freight traffic as well.

What has not changed significantly, or has not increased, is what I would call the rail reach—the speed with which trains move around the place and the overall capacity of the system. That is despite lobbying from groups and communities across the country. Normally, such lobbying has not been for anorak-based nostalgia schemes, but for quite modest, sensible, rationally argued enhancements—restoration of linkages, replacement of curves that had been taken out by Beeching—and in places where there is clearly some sort of demand, and where a demand case can be made. Those are not demand cases based on nostalgia, but on what people consider to be hard economic realities.

We have to ask the question why. Why, despite the increase in ridership—if I can put it like that—and despite the fact that the rail service has survived relatively intact since the days of Beeching, have we not extended anywhere at all to any great extent? That is something of a puzzle and I have tried to explain why. Several different explanations can be given. One is a belief among hard-edged planners at the Department for Transport that all schemes are necessarily based on sentiment and nostalgia, and not on a dispassionate review of the economic facts. Another explanation—this is clearly a major consideration—is the fact that in rail terms capital works are very expensive so far as signalling is concerned, particularly since privatisation. Signalling has almost become a private monopoly, and it is very hard to get the price down. If there is any kind of plan that involves alteration of signalling, we can expect the figures to increase dramatically beyond expectation.

Another reason why schemes are hard to progress is that unlike roads, the rail planning process is fairly opaque. The fragmented character of the rail industry—with Network Rail providing the track, and train operating companies with relatively short-term leases providing the railway carriages—means that people often work to short-term considerations with limited horizons. The fact that there are a number of players involved—including planning authorities, transport authorities and whoever supports the scheme locally in business terms—means that progressing a rail scheme is no easy matter. Anybody who has been associated with any campaigns of the kind I described at the start of this peroration will know how difficult it is to get all the ducks lined up. One good reason—or one bad reason—why we do not seem to get anything to happen is that we have not actually done anything. All those schemes have remained in the pending tray for as long as I can remember, so all the fear, bias, anxiety and expectation that people have about such schemes remain exactly in place.

[Bill Esterson (Sefton Central) (Lab)]

I am grateful to the hon. Gentleman who represents a neighbouring constituency. He talked about the difficulties of developing new railway schemes. Does he think that it is easier to make more use of the existing network, and what the opportunities are there? There is a scheme in my constituency that he is familiar with—the plan to build a new station in north Maghull. I think that he will go on to talk about the same railway line. That would be a much easier scheme, because that is a development on the existing network. The economic benefits of that should be relatively easy to attain. I wonder what his thoughts are on the cuts that the Government have pushed through, which mean that that scheme and many others on the existing network have gone.

[John Pugh]

Strangely enough, and I hate to be parochial, I am not completely familiar with the scheme the hon. Gentleman mentions, even though it is close to my constituency. I will say that Governments, and Network Rail in particular, have found it quite easy simply to develop what we have, rather than extend beyond that. Certainly, in discussions I had with Network Rail in the previous Parliament, it was fairly clear that that was the mandate it was being given by Government—to sweat the assets it had, rather than do anything as venturesome as actually building a new track, or putting a new line down anywhere. What the hon. Gentleman suggests is certainly complementary to what I am suggesting, rather than the opposite.

[Neil Carmichael (Stroud) (Con)]

After 13 years in which the Labour Government did not invest properly in infrastructure, I welcome and celebrate the Government delivering £45 million to redouble the Swindon to Kemble line. That is exactly the right kind of decision that will develop our infrastructure for an effective, rebalanced and powerful economy.

[John Pugh]

I certainly endorse that point, which is similar to that made by the hon. Member for Sefton Central (Bill Esterson), about getting more value and use from the assets that we have.

I would like the Government to be bold just once in a while and to put down a piece of rail that had not previously been there—as happens in other countries—or even to restore a piece of rail. I will talk later about huge schemes such as Crossrail, which are the exception, but all I am pressing for is that the Government advance a small railway scheme—anywhere. At the moment, we have no such practice or history to look at. We know about bypasses and what happens as a result of them, but we have no idea whether restoring the Todmorden, Halton or Burscough curves will involve either the impact that the promoters believe, or some of the costs that the Government fear. We simply have not done anything.

[Graham Stringer (Blackley and Broughton) (Lab)]

The hon. Gentleman makes an interesting case and might be getting to the point that I want to make. Is the real reason why there has been little investment in new lines over the past 30 years or so because of the methodology used for new investment? A terrific amount of investment is going into the railways at the moment, but nearly all of it is for the south-east, because the criteria used are about capacity and overcrowding, not about economic development, which is the point he was making. Does he agree that a rebalancing of the criteria of economic development and of overcrowding is needed because otherwise all the money will go to the south-east?

[John Pugh]

I heartily endorse that sentiment, as well as the hon. Gentleman’s point about methodology. He makes a very good case. However, the Government are in favour of rebalancing the economy, and they accept that one of the ways of doing so is through infrastructure capital projects, particularly on something such as rail. It is sad that really big rail schemes are being progressed in the south yet very little is happening up north, apart from such necessary developments as the Manchester hub.

It is fair presumption that if we want to move people around the country, laying down metal track and then shifting people around in large, uncomfortable iron boxes need not automatically be seen as the best approach. However, if we took that presumption to its logical conclusion, it would debar any tram schemes, although in places such as Manchester they have been extraordinarily successful. Even if that presumption is in place, it has to be tested, although that rarely happens. It is contested, however, when we come to the really large schemes such as Crossrail, high-speed rail and the Thames Gateway, on which the Government seem to be prepared to proceed—most hon. Members would support that.

To be fair, the Government have looked at the area I am speaking about: restoring curves. During the passage of railways legislation under the previous Government, Tony McNulty, the then Transport Minister, let it slip that the Department for Transport was looking closely at some of the schemes to see if they had any value. The Government were taking the folders out of the cupboard, dusting them down and seeing what worked and what did not. However, since that inadvertent confession of what the Government were up to, none of the research has seen the light of day, as far as I know. There is a presumption against such development, and that presumption is not argued but insidious. It was actually contested just before the general election by my hon. Friend the Member for Lewes (Norman Baker), who is now Under-Secretary of State for Transport. He expressed his support for a range of smaller schemes, some of which I have mentioned already.

Being completely fair, there is evidence that rail travel is more expensive than it looks, given that it has a hidden public subsidy, as the Minister will no doubt say at some point. However, there is rather less evidence than there used to be that empty carriages are being carried around unnecessarily. I remember the right hon. Member for Edinburgh South West (Mr Darling), during his short spell as Secretary of State for Transport, calming things down by suggesting that he was going to contract the network further because parts of it were full of carriages of fresh air. No one is saying that any more. However, a man would never lose money by betting against the Department for Transport’s dismal projections on rail use. I recently looked at some statistics that demonstrated that even branch lines, which are one of the archaic aspects of our structure, are showing increased use.

There is a case that needs to be answered. Many hon. Members during their time in Parliament make cases for specific schemes, but what happens when we question the institutional inertia on the topic and when rational people bring forward considerations? Whether or not it is because of the methodology used, which the hon. Member for Blackley and Broughton (Graham Stringer) mentioned, hurdles get put in place.

In the past, the Department for Transport has asked me for a business case. Sensibly, I have asked what needs to go into a business case, but the Department is completely incapable of telling me, so I do not know what a good business case should look like. There simply has never been a good business case for a project such as I am suggesting that has been accepted by the Department. Demand studies have been carried out, but they are not so much optimised as—if this is a word—pessimised. People always assume the worst-case scenario, and that if the track is laid and the trains are built, no one will use them. Prices, however, are always maximised, without any indication of how competitive they are by international standards. I point out again that if we had adopted the same approach for trams that we have for small-scale railway infrastructure development, we would never have got a tram scheme off the ground.

If the Department for Transport puts in place the demand and the business case hurdles yet enthusiasm is still not dimmed, it is normally then suggested that the obvious way to promote the scheme would be under some local funding solution. However, there is always an underestimate of what a hard ask that is. Promoters of any substantial scheme would certainly have to talk to local councils to get them lined up, as well as dealing with passenger transport authorities and regional development authorities, when there were such organisations. All such organisations, by and large, have erratic, on-off funding streams. Their strategies have been revised over recent years and then changed again. The demands made of them have also changed, and even the labels of the organisations have changed, given that PTAs became integrated transport authorities. They are subject to changing mandates and central directives, some of which come from the Department for Transport. The promoters are then expected to pull all those organisations together and to work with national bodies such as Network Rail, which are also subject to prescriptions from the Government and the Office of Rail Regulation. Granted, Network Rail is more approachable than the disaster that was Railtrack, but it is still hard to deal with it. Had doing so been easier, we would have got to the yes-or-no stage for a scheme before now. What actually happens is that most schemes exist in limbo—they are simply around; neither in nor out, and neither done nor not done. Periodically, there are outbursts of activity in connection with them, but nothing that would represent substantial progress.

We can ask whether that is a problem, because no progress means that no money is spent, which means that no money is lost. People have a horror of losing money on railway schemes—of spending money futilely. We can look with equanimity on an unused road, but an unused railway is a different proposition. However, I agree with the hon. Member for Blackley and Broughton that this does matter. If any such schemes represent economic opportunities missed, they are largely economic opportunities missed in areas that need them: in the north, and outside the south-east and the London area.

Not to progress such schemes leaves in place a transport structure that, post-Beeching, does not make much sense, would never have been designed like that, and has been vandalised. Investigation of such schemes and why some people are keen advocates of them shows that they were often attempts to deal with a huge transport anomaly in their area. The third reason for requiring clarity is that while schemes remain in limbo, the land is preserved, the track bed is kept, and the aspiration and hope is retained—but for what, if there is no case for implementing them?

Many post-Beeching schemes that are still alive and kicking today are not based on pure nostalgia, and there is normally not a case for never implementing them, but there is also no clarity about when all the boxes for implementing them will be ticked. The situation is strange and Kafka-like, and we cannot get out of it. The Government have been honourable and clear in saying that such schemes are off the books for four years, although I understand that some are an exception, but while they are in that strange transport limbo we may be missing serious economic opportunities that we should investigate to a conclusion.

I want to pick up a point made by the hon. Member for Blackley and Broughton about the London parallel. The Chair of the Select Committee on Transport constantly recites figures—they elude me for the moment—on how much is spent on transport in London compared with elsewhere.

[Graham Stringer]

Nearly all.

[John Pugh]

I suggest that the ratio is 10:1, and perhaps an hon. Member will correct me if I am wrong. I speak with some bitterness, because I spent two years discussing the Crossrail Bill. Its Committee stage was one of the longest in the past 50 years, and it was pure endurance, but one could not help being impressed by the scale of what was being attempted, although there were days when one thought there were better uses for one’s time. It is an engineering marvel, and will link the bankers of Canary Wharf with their planes at Heathrow. I am not against that, but London is already probably the best connected capital in the world, and it already has a tube and bus network that is the envy of every other city in the UK. I genuinely doubt whether London’s contribution to UK plc will be massively affected whether or not we build Crossrail on the most expensive real estate on the planet, with all that is involved. If the bankers of Canary Wharf, like their Venetian counterparts, are forced to take a vaporetto along the Thames, life would not be greatly worse for the nation or the economy.

[The Minister of State, Department for Transport (Mrs Theresa Villiers)]

I cannot help intervening. Does the hon. Gentleman accept that the coalition has embarked on the biggest programme of rail capacity expansion in modern history, which includes significant projects in the north of England, not just electrification, but most recently the announcement that the Ordsall chord scheme has had the go-ahead? That will provide significant benefits for people living in cities throughout the north of England.

[John Pugh]

I am not saying that the Government have done nothing. I am saying that, like all Governments previously, they have in the pending tray schemes on which they have reached no rational conclusion or that have not been investigated thoroughly, and many of them are in the north-west. Even taking into account the investment in the north, which I welcome, applaud and wholly support, the proportion of that investment—the Minister may contradict my figures later—compared with the proportion anticipated for London, including Crossrail and the Thames Gateway, does not chime with the general drive to rebalance the economy.

I accept that there is a problem with overcrowding in London. Anyone who travels on the Northern line at certain times of day will testify to that. However, that is largely because London’s population is always swelled by the enormous number of people coming here every day by train, not because they cannot do business elsewhere, but because getting into and around London is already quite easy for business purposes. It is not easy absolutely, but it is easy compared with many other places.

Anyone who takes a few cross-country journeys by rail, such as from Reading to Liverpool or somewhere that is not on the London axis, knows how difficult they are. Although there has been investment in the north, we often have regurgitated rolling stock that the south-east does not want or has finished using. The bulk of the new rolling stock is coming to the Thames Gateway and the London area, but in Lancashire—the hon. Member for Blackley and Broughton will agree—we have the most appalling, aged rolling stock rolling up and down the northern line with no immediate improvement in sight. We have not gone as far as I would like in doing something about regional inequality in transport investment. If I transpose in my mind any of the schemes to which I have alluded and imagine them happening in London and the south-east, I conclude that they would take less time.

The Burscough curve is my scheme of first preference. There are two stations, half a mile apart, in a growing, substantial dormitory town. Trains of two major franchises cover two city regions: Merseyside and Preston, as well as central Lancashire. Those two conurbations have been identified as being poorly linked by transport, but linking those two city regions requires only half a mile of track. If that were the case in Southwark, Kensington, Walthamstow, Richmond or the Thames Gateway, I have no doubt that it would have been funded and done years ago. Colleagues may play the game for themselves with their own pet schemes. What is a no-brainer in London is often a half-century campaign elsewhere.

A simple example with which some hon. Members will be familiar is the snarl-up between freight traffic from the docks and passenger transport trains from Liverpool Lime Street station. That went on for a long time, and arose simply because of the failure to put in the Olive Mount chord. It was wholly supported by all the economic interests in the area, and it has now been done, but I genuinely believe that it would not have taken the same length of time had it occurred at Felixstowe, near Tilbury or elsewhere in the south-east.

I am encouraged by the pre-election support of the Under-Secretary of State for Transport, my hon. Friend the Member for Lewes for smaller schemes. I am heartened by the Secretary of State’s view that even in times of austerity it is sensible to sustain capital investment in transport, and that is what the Government are doing. I am restrained by due and proper caution with regard to some of the schemes, their costs and so on, but we can all travel in hope and never arrive. The Department can set out clearly what it can achieve, or it can simply wash its hands of the matter and put it down to local decision making. I have given reasons why that is not the best outcome.

I want to address the real problem of institutional inertia. We would never have found out that passengers do not suffocate in railway tunnels had we not sent passengers through them—that should not be done in an uncontrolled way, but we certainly managed to find out what happens. We do not know what happens if a scheme such as that at Todmorden progresses, because such schemes do not progress; they remain static. We will never find out whether restoring curves make sense, unless we restore them. That should not be done randomly, and I suggest that the Department rescues its paperwork on curves and their restoration, and prioritises its projects using criteria that can be understood. We must learn lessons by actually carrying out a project and make something happen.

We must also consider other alternatives. There is a long historic link between housing development, which the country sorely needs, and rail development. Housing development often provides a subsidy for rail development. A few years ago I attended a reception—other hon. Members may also have been there—at which the Kilbride Group promoted what it was doing for railway development in the south-west. That was linked to a major housing development, and a similar aspect of housing subsidy could creep into a project such as the Burscough curves. I am aware of the role played by that group and of the possibilities elsewhere. Given that so many people have banged on about this issue for so long, it would not harm the Department for Transport to invite those with such schemes in mind to some sort of seminar, at which problems and prospects on both sides could be aired.

It would also help enormously for the Department to point to an extra mile of track somewhere, and say why it had or had not worked, and to explain why it appears to be neither physically nor financially possible to put back track in England. That would be one way forward. It does not commit the Government to a single penny but it means that we can discuss the various schemes. A while ago I asked to speak personally to the Minister about the Burscough curves, but I understand that she had other priorities at the time and I lay no blame at her door for that. However, I am not comfortable with the strange, Kafkaesque world in which nothing really happens except that the odd consultant gets paid from time to time. The bizarre anomalies that lead to people supporting various schemes continue, but no final decisions are made. I suggest that there is a more intelligent way to do things.

--- Later in debate ---

[John Pugh]

It would seem to anybody listening to the hon. Gentleman expand on his scheme that a very small amount of money is needed to make a very important change. We could almost call it a social experiment, which, if it comes off, we could learn from and apply elsewhere. Does he agree?

[Eric Ollerenshaw]

I am grateful for that intervention, because the hon. Gentleman puts the possibilities into words better than I can.

The scheme and the enthusiasts are there, and, as the Minister has seen, the track is there bar one mile of it, but I am sure that we can easily borrow a mile of track from some other disused railway. I am asking for some ministerial support for the scheme, particularly in respect of Network Rail, and for another demonstration from the coalition Government that they are committed to the north and to the north-west in particular.

--- Later in debate ---

[The Minister of State, Department for Transport (Mrs Theresa Villiers)]

I join others in congratulating my hon. Friend the Member for Southport (John Pugh) on securing the debate and on his eloquent and articulate speech. All contributions to this good debate have given us an insight into what approach to take on rail expansion, particularly with regard to local schemes. I highlight the fact that my hon. Friend the Member for Elmet and Rothwell (Alec Shelbrooke) is in the room because he also takes a keen interest in local rail services in his constituency and campaigns to improve them.

My hon. Friend the Member for Southport acknowledged that there has been a problem in recent years due to a failure to address the increase in passenger numbers by increasing capacity. To be fair to the previous Government, they started to wake up to the problem, but rather late in the day. However, a significant programme of rail investment is now under way. That is a response to the sort of points that my hon. Friend made about the success of the railways in increasing passenger numbers, as well as about the significant economic and wider regeneration benefits that can be produced by the better connectivity that comes with the railways.

I assure my hon. Friend that there is no presumption against local rail schemes, as he indicated that there might be. He and other hon. Members have highlighted the benefits of local rail expansion, whether by reopening disused lines or providing better or more frequent services on existing track. The Government fully recognise the possible benefit of such schemes. I shall set out what assistance we can give on those and the sources of funding that local authorities might look to. However, it is also important to talk about some of the bigger capacity expansion programmes, because my hon. Friend is right that they are much needed.

Despite the deficit that we inherited, the coalition has placed a priority on capital spending on rail programmes for exactly the sort of reasons that my hon. Friend outlined. We have heard about the major electrification programme in the north-west, including for routes between Liverpool and Manchester, Liverpool and Wigan, and Manchester and Blackpool. As well as benefiting long-distance services, that enables local services to be operated by electric trains, thus providing faster journeys for passengers and releasing diesel carriages for use elsewhere on the network.

New Pendolinos will be added to the west coast main line in the months to come. We have announced plans for the electrification of the Great Western line between London, Newbury, Oxford, Bristol and Cardiff. Long-distance services on both Great Western and the east coast will benefit from the new fleet of intercity express programme trains. Line improvements are also going on for the east coast. A major redevelopment at Reading station will benefit railway users right across the south-west of England and south Wales. The long-awaited upgrade of the London underground has been secured. Crossrail and Thameslink are under way and will provide a major boost for public transport capacity in London and the south-east. Funding has been secured for the whole of the CP4 programme of capacity enhancements. More than 2,000 new carriages will be introduced on to the network across the country by May 2019, around 1,800 of which will be additional capacity. That will include 650 extra carriages by May 2014.

We are also consulting on our plans to deliver a Y-shaped high-speed rail network connecting London, Birmingham, Manchester and Leeds. I am grateful for the graciously expressed support of the hon. Member for Blackley and Broughton (Graham Stringer). I assure him of our absolute commitment that the line will go to Manchester and Leeds, because we believe that will not only provide the vital uplift in capacity that he rightly highlights is needed on the west coast and east coast routes, but help to meet the ambition to rebalance the economy and close the prosperity gap between north and south. Our programme of rail and transport improvements includes significant investment in the north. When taking decisions about which investments to make, we of course take on board the wider regeneration issues and our ambition to rebalance the economy, not just the straightforward business case.

Further investment was announced in the Budget, including for the Ordsall curve, which is another important benefit for the whole of the north of England. A second project was the Swindon and Kemble redoubling, which will help to improve local services and resilience on the route to south Wales. The next high level output specification is in preparation, and we will give full consideration to the northern hub. The shadow Minister asked for the Government’s commitment to that, but I would be interested to know whether such a commitment is now official Labour party policy—I noticed that he did not specify that.

I welcome the points made by my hon. Friend the Member for Southport about the Burscough curves. I know that he has campaigned for that project for a long time. I emphasise that the key first step to make progress on that is to get support from Lancashire county council and Merseytravel. It is important for local authorities to set priorities on a direct rail link between Ormskirk and Southport, and Southport and Preston. It is for local transport authorities to decide the best way to meet a local transport need.

[John Pugh]

Several hon. Members have voiced concern —the Minister is helping us a little with it at the moment—about the opaqueness of the procedure for getting these schemes to fruition. It would be helpful if the Department for Transport would give guidance to the campaign groups across the country about the stages through which they must go, the hurdles they must get over, who the groups need to get buy-in from, and who is necessary and who is incidental.

[Mrs Villiers]

Guidance is published on the Department’s website, but officials are always happy to engage with campaign groups and local authorities to help them to navigate something that is not an easy process. When one is talking about significant amounts of taxpayers’ money, we need to ensure that care is taken when judging how to deploy it. The Public Accounts Committee and the National Audit Office analyse very astutely whether we are making the right decisions on how money is spent, and that means that business cases have to be considered. My officials will be happy to engage with my hon. Friend on the issue. I will be happy to meet him to discuss the Burscough curves. My officials are heavily engaged with local authorities in the area about the Todmorden curve, which another scheme with considerable local support.

My hon. Friend the Member for Lancaster and Fleetwood (Eric Ollerenshaw) spoke eloquently about the potential for reopening the Poulton to Fleetwood line. I much enjoyed my visit there. If he is having problems engaging with Network Rail, I will be happy to take that up and to encourage Network Rail to work with the group mentioned by hon. Friend.

In response to my hon. Friend the Member for Chippenham (Duncan Hames) on the TransWilts rail project, I know that the Secretary of State has looked at that recently. Again, if progress is to be made, the first step is to get the support of the local authorities. We want local authorities to be more heavily involved in decisions about rail and we are actively considering how best to bring down the cost of such rail schemes so that it is more viable to deliver the kind of improvements that hon. Members have asked for. We hope that the McNulty review will generate ideas on that point. In addition, we hope that projects such as the Rotherham tram train and the Abbey line tram project will give us an insight into whether light rail can provide a lower-cost alternative for some of the schemes mentioned today.

Sources of funding for such local schemes might include the private sector, if developer contributions are available. The local sustainable transport fund or the regional growth fund are also available. The spending review has provided significant funds for major local transport schemes—£1.5 billion up to 2015. A number of schemes have already been given the go-ahead, including improvements to Leeds station and the extension of the Midland metro. Projects such as Kirkstall Forge and Apperley Bridge are under consideration.

A further funding source is available after a certain period. For projects that are primarily local in nature, we think that it is fair to ask the local authorities to take initial responsibility for getting the scheme up and running, and funding it. We recognise, however, that the railway network needs to adapt to population growth, and we are always prepared to consider the case for reopening disused local lines or the enhancement of local services on existing lines. When a local authority has chosen a rail solution to meet its transport needs, it is appropriate for it to demonstrate its commitment to that solution by taking initial responsibility for revenue funding. Once the service has run for a few years and demonstrated its success, we will then assess it on the same basis as existing franchised services. If the scheme has a good business case, and if the ongoing subsidy required is affordable and can be accommodated within available budgets, we are prepared to consider providing funding at a national level from the departmental rail budget. Schemes would normally be considered for such central funding after three years, but because of the constraints on the budget, we have made it clear that new schemes will not be considered for central funding on that basis until after 2015, although we do not believe that that will have an impact on any existing schemes.

Sustainable Transport

John Pugh Excerpts

Wednesday 19th January 2011 Commons Chamber

[Norman Baker]

It is certainly true that in this country 43% of people have a bicycle and only 2% of journeys are made by bike, which suggests that there are bars to people cycling which they wish to overcome, having bought the bicycle in the first place. People often feel safer off-road than they do on-road, so the creation of cycle paths can be particularly useful. I am thinking of safe routes to school in particular, and I hope that local authorities will want to consider such schemes when submitting bids to the Department. As well as the money for Bikeability for this year, in 2011-12 we are also providing £30 million from the centre for links to schools, for bike club, bike it, and walking to school initiatives.

[John Pugh (Southport) (LD)]

What impact, if any, does today’s announcement have on the development of small-scale rail extensions, such as the Burscough curves? We have hoped for very little and got very little.

[Norman Baker]

The fund is not designed to reinstate railway schemes, because they are of a size and nature that it could not sustain. As I said earlier, we are keen to see what we can do to improve and enhance the rail network, where it makes commercial sense to do so. My right hon. Friend the Minister of State has noted the point made.

Rail Investment

John Pugh Excerpts

Thursday 25th November 2010 Commons Chamber

[Mr Deputy Speaker (Mr Nigel Evans)]

Last, but certainly not least, I call John Pugh.

[Dr John Pugh (Southport) (LD)]

On a final jarring note, there is an impression that capital investment in rail usually means rail investment in the capital. What can the Minister do to disabuse me of my prejudice, perhaps by publishing per-region figures?

[Mr Hammond]

I thank my hon. Friend for his question. It is of course true that two huge rail projects are going ahead in the capital—Thameslink and Crossrail. The good news is that because both projects will between them deliver 1,800 new rail carriages, they will release large numbers of perfectly serviceable electric rail cars, which themselves make the case for further electrification of commuter lines in the north-west and on the great western main line. There are benefits for everybody, not merely for London and the south-east, deriving from the Crossrail and Thameslink investments.