Infrastructure Bill [Lords]

Lord Redwood Excerpts

Monday 8th December 2014 Commons Chamber

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

I beg to move, That the Bill be now read a Second time.

What a joy to perform once again in this theatre of dreams. What an honour to speak for the Government introducing this important Bill. What a responsibility this House has to create the future our nation needs, to build a Britain fit for generations to come and to plant trees for those born later.

Governments of all persuasions tend to neglect the long term. Perhaps that is the legacy of the post-war preoccupation with Keynes, who after all wrote:

“In the long run we are all dead.”

Perhaps the necessity of popular payback within five years discourages public policy that looks sufficiently forward. To speak candidly, it is more likely that we—those of us with power—are frightened to anticipate what might be, fearful of misjudging what is to come. Sometimes, in respect of some things, that does not matter too much, because some of the business of government is necessarily reactive. But when it comes to infrastructure, failure to face the future is catastrophic and devastating.

Thinking for the long term widens an appreciation of consequence and deepens an understanding of effect. The absence of strategic vision not only leaves us with exclusively reactive responses to need, but reduces policy to piecemeal, tiny steps when giant leaps forward are needed. That reflects a small view of government. That is not your view, Mr Speaker, I hasten to add, and nor is it mine, but it is a pessimist’s view of politics—a politics reduced to dull, technocratic managerialism.

By contrast, the Bill that I introduce to the House today is urgent and ambitious about long-term plans and a bolder view of what Government can do: urgent because Britain sits uncomfortably low, at 27th, in the global infrastructure rankings; ambitious because, as this Bill demonstrates, the Government are focused on the future. This Government understand that the future of our country depends on investment for the long term that must and will be ambitious.

[Mr John Redwood (Wokingham) (Con)]

Does the Minister recall that we both fought on a Conservative manifesto that said that we should get rid of quangos and not create new ones, and that Ministers should be responsible and accountable—something that I entirely agree with? Why is he proposing two new quangos on highways instead of the excellent arrangements for accountability through him?

--- Later in debate ---

[Mr Hayes]

The hon. Gentleman knows that Nottinghamshire is dear to my heart, as it is to his. He says that the work has only just begun; well, I have only just become the Minister, haven’t I? I do not say that that coincidence is entirely a correlation between his desire and my effectiveness, but it is certainly true that our improvements to the A1—along its length, actually—will make an immense difference not only to motorists, but to hauliers from my constituency and many others who need to get their goods to market.

The hon. Gentleman will know that we have added more than 1,300 new lane miles, and that we will fix some of the most notorious and long-standing problem areas on the network, such as the entire A303 and the A358 to the south-west, including the tunnel at Stonehenge. The 84 new road projects will improve connectivity across the UK. In addition, we are investing to improve the lives of local communities affected by road upgrades.

[Mr Redwood]

On the important link to the south-west, did the Government look at the alternative to a tunnel of deviating the road a little further away from Stonehenge —giving generous compensation to landowners—and building a much cheaper road above ground?

[Mr Hayes]

We considered all the options. My right hon. Friend will know that we undertook considerable research, discussion and consultation on that matter. The scheme we have ended up with has been welcomed by several environmental bodies, such as English Heritage. Of course, each option has pros and cons—I would not be straightforward with the House if I did not acknowledge that—but I think that we have got the right solution.

As with all such schemes, what characterises the Government, above and beyond the desire to think strategically and put funds behind the strategy, is a willingness to look empirically at a range of options. It is very important to be ambitious, but also to be precise, and the way in which we measure the effect of the money we spend has allowed us to allocate funds not only to areas of the road network that have the greatest need, but where we can make the most difference.

The fact that there is £100 million to improve cycling provision at 200 key locations across the network reflects our understanding that it is not just motorists and hauliers who count. There is a £300-million environmental fund to mitigate carbon emissions and reduce the number of people affected by serious noise by up to 250,000. There is £100 million to unlock growth and housing developments.

I have missioned my Department to look closely at the look and feel of what we build. It is absolutely right that the aesthetics are taken into account. If that was good enough for earlier generations, it should be good enough for ours. What we build does not have to be ugly. It can serve a purpose and have an edifying impact on the localities affected.

--- Later in debate ---

[Richard Burden]

I have a feeling that in this debate Conservative hon. Member after Conservative hon. Member will stand up and ask me about this scheme or that scheme, and will say, “Come on. Will Labour go ahead with this or not?” We are not in the business of cutting long-term investment in our roads infrastructure in the way that the present Government cut long-term investment in infrastructure. But if we are looking through individual scheme after individual scheme, we are going to scrutinise them. We are going to see if they are all they are cracked up to be.

Let me give other examples. In many cases the Government’s figures do not add up. In some announcements there is £3.5 billion-worth of investment for 20 new schemes; in other announcements, that becomes £3.4 billion. In 2013 we read that £8.5 billion had been set aside for 26 schemes; that now appears to be £6 billion. In some announcements there has been £15.1 billion for 2015 to 2021, but in answer to a parliamentary question that I asked the Minister last week, the figure was £15.2 billion, and it is still unclear whether this is entirely Government money or whether the Department for Transport is still waiting for third-party contributions to make up the total. I shall not be able to give answers on individual schemes because as far as I can tell, those individual schemes do not add up, but we will scrutinise them. We will ask the difficult questions, because those are the questions that the public expect us to ask.

[Mr Redwood]

Now that the shadow Minister has seen the projected overall levels of capital expenditure laid out by the coalition Government in the autumn statement for the period up to 2020, does his party think they are the right levels, or are they too low or too high?

[Richard Burden]

As I said in answer to the previous question, we are not in the business of saying that we wish to cut back on capital investment. For goodness’ sake, we have been saying for four years that the Government have not been investing enough in infrastructure. It seemed from the Minister’s opening remarks that he was criticising the previous Government for not having spent enough. That is a bit of a change from what we have heard before—usually we are accused of having spent too much. Labour spent a total of £93.7 billion on our road network between 1997 and 2010. That is because we are interested and we are committed to repairing our creaking infrastructure. That will not change.

High Speed Rail (London – West Midlands) Bill

Lord Redwood Excerpts

Monday 28th April 2014 Commons Chamber

[Mr McLoughlin]

One of the questions is “Where is the biggest capacity problem?” and, whether I like it or not, the biggest capacity problem is on the southern part of the route—the route coming into London—but I well understand the concerns of hon. Members representing Stoke-on-Trent and other areas regarding the importance of getting the route right as far as they are concerned. That is why we are in the process of consultation and I am happy to meet and hear representations from those areas, although I am mindful of the huge number of consultations.

[Mr John Redwood (Wokingham) (Con)]

Does the Secretary of State agree that we are talking today about a very big item of public spending, not an investment, because the business case makes it very clear that none of the debt can be repaid out of fare revenue and much of the interest in the early years will also fall on the taxpayer?

[Mr McLoughlin]

I believe there is a good cost-benefit ratio. We estimate the cost-benefit ratio to be 2.4 and it is worth pointing out—I will come on to this in my speech—that the initial cost-benefit ratio for the Jubilee line was less than 1% and if that had not been built I do not think we would have seen the subsequent development in Canary Wharf. However, I do not want to be tempted too much away from the very detailed contextual part of my speech, which I have worked out.

--- Later in debate ---

[Mary Creagh]

We will not be paying any tolls to go through Lichfield. Journey times to London will be significantly cut. One of the benefits that has perhaps been undersold is the connectivity that HS2 will bring even to those cities not directly connected. Given the anxieties in Stoke-on-Trent and the key decision to be made on Crewe, when will the Secretary of State bring forward his response to phase 2? It would be helpful to know his thinking.

[Mr Redwood]

What has changed between last autumn and today to move the Labour party from thinking that HS2 offers very poor value for money to thinking that it is a great financial project?

[Mary Creagh]

David Higgins and Simon Kirby, the former Network Rail chief engineer, have been appointed to the project, and the Higgins review has shown where costs can be brought down. The key risk to the project costs is political delay. We have also looked at the strategic alternatives, as we did in government, and we believe that HS2 is the best way to move to the low-carbon transport infrastructure that our country needs if we are to meet our climate change emissions targets.

--- Later in debate ---

[Mary Creagh]

We have been very clear that there is not a blank cheque for this project. The Select Committee will obviously look at the parts of the Bill, as it goes through it and hears the petitioning process, but a very clear budget is set out for the project from now until 2020. There will be annual reports on the budget under our amendments to the paving Bill. We look forward to receiving the first report from the Government.

The Transport Secretary has admitted that the legislation will not be passed before the 2015 election, as was apparent to all Members, so his Government have missed their target on that. It is right that there is proper scrutiny and ample opportunity for the Select Committee to examine every complaint and comment thoroughly, but there must be no more Government delays.

I want the Secretary of State or the Minister who replies to the debate to tell us when we can expect the Secretary of State’s response on the phase 2 route to ensure that the north, the north-east, the north-west and Scotland reap the full benefits from HS2 quickly. What impact does the Secretary of State anticipate the construction of the line will have on the Great Western franchising process, which is due in 2016?

On workers memorial day, we remember all workers who have been killed at work, particularly in constructing our transport infrastructure across the decades. In particular, we remember the worker who was recently killed on the Crossrail project, and send our condolences to his family and friends. Our ambition, which I am sure is shared in all parts of the House, is that this railway is free from fatalities and serious injuries.

[Mr Redwood]

Is the hon. Lady at all worried that the business case says that load factors on the west coast main line will be only 31% in 2037, and that there will have to be cuts of £8.3 billion to non-HS2 services to try to keep costs under control?

[Mary Creagh]

The right hon. Gentleman refers to a part of the report that does not immediately spring to mind—I have not perhaps digested it and kept it in mind as thoroughly as he has done—but there is broad consensus across the parties that the project is the right thing to do for the nation, and I hope that we can proceed on that basis.

--- Later in debate ---

[Mrs Louise Ellman (Liverpool, Riverside) (Lab/Co-op)]

I welcome the Bill to start the building of the high-speed line from London to the west midlands. High Speed 2 was first put forward in 2009 by Lord Adonis when he was Secretary of State for Transport. Since then there has been considerable and very necessary discussion and debate. The project has all-party backing; it is now time to fire the starting gun.

This must be just the first stage in building a high-speed network for the UK, with phase 2 expanding the network to the north. It must be built as a major addition to the national network, linked with investment in the existing classic line so that essential increased capacity and connectivity, together with the potential for regeneration, are realised. Increasing capacity for both passengers and freight is required on both the east coast main line and the west coast main line. The figures released last week by the Office of Rail Regulation showed a phenomenal doubling of rail passenger journeys in recent years, together with a vast increase in freight on rail. In the past decade, rail passenger journeys have increased on average by 5% per annum and freight has expanded. On some routes, the increase in passenger journeys has been more than 70% over that decade. That increase is expected to continue, and the demand for freight is increasing.

The growing demand for rail from both passengers and freight is already causing problems on the west coast main line, where there are insufficient rail paths available to meet the needs of the new services that are required, and delays are already occurring. The Transport Committee has addressed this issue on a number of occasions. In our first inquiry in 2011, we looked at alternatives to building a new high speed network. We looked specifically at upgrading the west coast main line as an alternative. The Committee was very clear that that will not provide the step change that is required. The £9 billion west coast main line investment of 2008 has brought essential improvements, but it has not created enough capacity for the future.

I was pleased to see that the recent reports from both Sir David Higgins and Lord Deighton took forward the very specific recommendations made by the Transport Committee to ensure that the best possible value is obtained from this necessary investment across the nation. Those recommendations include building a line, together with continuing investment in the classic line at the same time as the new capacity is built.

[Mr Redwood]

I am grateful to the hon. Lady. As over this weekend the marketing materials for the current railway said that one could travel to Birmingham for £7.50 and to Liverpool or Manchester for £12.50, is she worried that when this huge amount of capacity comes on stream, if it does, there will be even more intense price competition and huge disappointment in the fare revenue needed for the scheme?

[Mrs Ellman]

One of my concerns is that if the new line is not built, the problems of capacity will lead to whatever Government are in power being tempted to increase rail fares to manage demand.

Further recommendations from the Select Committee taken up by Sir David Higgins and Lord Deighton include ensuring wider access to the new network—

West Coast Main Line

Lord Redwood Excerpts

Monday 29th October 2012 Commons Chamber

[Mr McLoughlin]

I am grateful to the right hon. Gentleman for that question. He has a distinguished record of being one of the longest-serving Secretaries of State for Transport, so I listen to him with the care and attention he rightly deserves. He raises a couple of points. He might not be aware that at the tail end of the previous Government they also talked about extending the franchises up to 20 years, which was seen to be a way of getting a better return overall for the huge investment from the taxpayer that goes into the railways. He makes an interesting point. As I said in my initial statement, I have asked for two reviews and I think that that is something that Richard Brown, the chairman of Eurostar, will be considering in his report, which I expect to see before the end of the year.

[Mr John Redwood (Wokingham) (Con)]

In the appraisals of the new competition being held for the west coast franchise, what will the role of Ministers be in setting the terms of the competition, supervising the arithmetic and making sure that a fair assessment is made?

[Mr McLoughlin]

I hope Ministers set out the policy. I am not sure that we are there to check every line of every spreadsheet. That is something that we should rightly expect officials to do for us at the request of Ministers, to ensure that we get the best value for the taxpayer out of what has been a huge amount of investment on this railway line, which has been made on behalf of the British public. It is one of the most important lines that serves the United Kingdom so I will certainly bear in mind what my right hon. Friend says, but part of the point of going for longer franchises was to try to deliver better services to the passenger.

Rail Investment

Lord Redwood Excerpts

Monday 16th July 2012 Commons Chamber

[Mr Speaker]

Order. I remind the House that, in accordance with convention, Members who entered the Chamber after the Secretary of State began her statement should not be seeking to catch my eye. It is also obvious that there is very widespread interest in this subject—understandably so—which I am keen to accommodate, but Members will also be aware that there are two Opposition-day debates to follow. Therefore, there is a premium on brevity from Back Benchers and Front Benchers alike.

[Mr John Redwood (Wokingham) (Con)]

Over the past two years Network Rail has announced losses of £344 million on its very large derivatives book, so would not a better way of spending that money be to have a national programme to replace dangerous level crossings with bridges and underpasses—and could that start in Wokingham, please?

[Justine Greening]

My right hon. Friend raises an important point about passenger safety. In fact, the railways are one of the safest modes of travel we have. We have announced £65 million today to see continued improvement in level crossings. I would be very happy to meet him to hear his concerns about his local station, and I am sure that Network Rail, which takes the decisions, will also be interested to hear those concerns.

Rail Fares

Lord Redwood Excerpts

Wednesday 11th January 2012 Commons Chamber

[Maria Eagle (Garston and Halewood) (Lab)]

I beg to move,

That this House believes that the scale of increases to rail and bus fares and the high cost of fuel are significantly increasing the transport sector’s contribution to the cost of living crisis facing households up and down the UK; notes that, despite the Chancellor’s announcement in his Autumn Statement that rail fares would rise this month by 1 per cent. above inflation, many commuters have found their tickets have gone up by as much as 11 per cent.; recognises that this is a direct result of the decision to give back to train companies the right to add a further increase of up to 5 per cent., resulting in the cost of getting to work rising to more than the cost of monthly mortgage or rent payments for many families; notes with concern the National Audit Office’s warning to the Department for Transport that higher rail fares are likely to lead to higher profits for train operating companies; deplores the Government’s decision to levy even higher increases of 3 per cent. above inflation for 2013 and 2014; and calls on the Government to end the right of train companies to increase regulated tickets by more than the cap set by Ministers, so as to prevent fare increases of up to 13 per cent. that could otherwise hit passengers in each of the next two years.

This has not been a happy new year for many commuters. Having been promised by the Chancellor in his autumn statement that he was keeping increases in rail fares at just 1% above inflation, many had a nasty shock as they returned to work last week—not fare rises of 1% above inflation, but increases of up to almost 11%. Season tickets between Chester and Crewe are up by 10.6% on a year ago, and tickets between Llandudno and Bangor hiked by the same double-digit increase, 10.6%. Return tickets are also up—Exeter to London, for example, up by 9.6%, Cardiff to London by 9.7% and Plymouth to London by 9.7%.

But what did the Chancellor tell the House in November? He said:

“RPI plus 3% is too much. The Government will fund a reduction in the increase to RPI plus 1%. This will apply across national rail regulated fares, across the London tube and on London buses. It will help the millions of people who use our trains.”—[Official Report, 29 November 2011; Vol. 536, c. 810.]

He was right—it would have done, except that the Chancellor forgot to say that his Government had quietly given back to train companies the right to add up to another 5% on fares, provided the increases averaged out at the cap that he had set, giving the train companies back the right to fiddle the fares.

[Mr John Redwood (Wokingham) (Con)]

Given that we all would like lower rail fares, does the hon. Lady think that there should be a bigger Treasury subsidy out of taxpayers’ pockets in order to achieve that?

[Maria Eagle]

Our position is that we would have continued in this Parliament, as we did in 2009, to put a stop to the power train operating companies have to fiddle the fares—

High-speed Rail

Lord Redwood Excerpts

Tuesday 10th January 2012 Commons Chamber

[Mr Speaker]

Order. Given the intense interest, I appeal for brevity, led by one of its exemplars, Mr John Redwood.

[Mr John Redwood (Wokingham) (Con)]

Will the Secretary of State tell us how much the Government propose to spend on the project during this Parliament, and will she confirm that no construction contracts will be let during this Parliament?

[Justine Greening]

No construction contracts will be let during this Parliament, and my understanding is that the spend over the course of this Parliament will be in the region of a couple of hundred million pounds.