Rail Reform
Justine Greening Excerpts(12 years, 8 months ago)
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The Secretary of State for Transport (Justine Greening)
With permission, Madam Deputy Speaker, I would like to make a statement on the railways. Our rail network matters—to our quality of our life, our national well-being and our country’s future prosperity. For this Government, it is a simple equation: good transport equals good economics. But, too often, we find ourselves frustrated and disappointed when the cost, punctuality or comfort of rail travel do not come up to scratch. I believe that the Government and the rail industry can and must do more for passengers and taxpayers. Of course, investment has a huge part to play, too. That is why we have been investing in our transport infrastructure, which is one of the best ways to support business, generate growth and create jobs. For rail, that has meant the biggest modernisation programme since the Victorian age, with £18 billion invested in this spending review alone.
However, it is not enough only to invest in the railways; it is also vital to make sure that they are set up for success. So, today, I am setting out our plans to do precisely that, with the publication of our rail Command Paper, “Reforming our Railways: Putting the Customer First”. I have taken the “Ronseal” approach to the name, as the strategy will do what it says on the tin: put the customer first. The hallmarks of our railway must be high standards and low costs. It must be a railway that offers the best services and the best value. That means a rail network that is efficient, effective and affordable. Nevertheless, in his rail value-for-money study, Sir Roy McNulty concluded that our railways are among the most expensive in Europe, despite the strong and steady growth in the number of passengers using them. Sir Roy identified inefficiencies worth £2.5 billion to £3.5 billion a year—of course, the people picking up the tab for that costly inefficiency are passengers and taxpayers, so reform is long overdue.
Passengers rightly want to know that we have a plan to end the era of the inflation-busting fares seen over recent years, and taxpayers rightly want to see railway subsidies reduced to help us to tackle the fiscal deficit. My message to everyone today is clear: the days of spiralling and unjustified rail costs are coming to an end. Under this Government, the rail industry will be able to compete for future investment only if its long-term cost issues are addressed and if it can earn the right to grow. I am pleased to say that Network Rail is already due to deliver £1.2 billion of efficiency savings by 2014, with at least a further £600 million expected by 2019. But, as Sir Roy so clearly set out, we need to go further. The railway as a whole needs to become less dependent on Government subsidies, which is why we want the industry fully to close the efficiency gap of £3.5 billion per year identified by Sir Roy by 2019. We are about managing and reducing costs, balancing budgets, targeting investment where it can drive long-term growth and jobs, and delivering more capacity and better service for the investment that goes in.
The time is right for reform. I believe that we are in a good position to build on recent efficiency gains to improve the performance of the industry further and to improve the passenger experience. The programme of work that will decide rail outcomes and funding for the five-year period from 2014 is now well under way, and that sits alongside a period when we will see the biggest round of re-franchising since the privatisation of the industry. Both represent a further opportunity to change our railways for the long-term better.
Today’s Command Paper sets out our ambitions for Britain’s railways, and the agenda for change that both the Government and industry will follow in the months and years ahead. By reforming the industry, we will achieve substantial savings. Those savings will allow us to cut and then abolish above-inflation rises in average regulated fares, and they will ease the burden of the railway on the broader public purse. I believe that, taken together with my decision to limit the most recent increase in regulated fares, that will have a positive long-term impact on household budgets.
For reform to be really effective, there needs to be closer collaboration between the infrastructure managers—in other words, Network Rail—and those who provide passenger services, which are generally the train operating companies. Only through better joint working will we reduce costs and improve the customer experience. The industry is already pushing for better alignment between track and train. We look forward to the industry bringing forward partnerships that are equipped and incentivised to deliver not just better services, but better value. The rail industry, led by the Rail Delivery Group, has also declared itself willing and able to respond to the strategic and operational challenges that the railway faces. Such leadership across the industry will be essential if we are to get the most out of our reforms.
Rail franchises will be reformed, with greater transparency on costs and efficiency—again, that is to ensure the best value for fare payers and taxpayers. Franchises will be longer, giving train operators the flexibility they have been asking for—more time to make the biggest investments—to deliver what passengers want, within a sustainable budget. We will also move to a more transparent, modern and flexible approach to fares and ticketing. We are launching a consultation today to take views on how those key aims can be achieved; it is time to bring fares out of the 1970s and into the 21st century. We will expand smart ticketing to give more passengers the kinds of benefits that travellers in the capital already enjoy with Oyster cards. Working with industry, we will roll out smart ticketing across England and Wales, and across different operators, thus increasing convenience for passengers. Smart ticketing is also pivotal to introducing a more flexible system tailored to customers, with a wider choice of tickets and season cards, as we recognise the reality that not all journeys take place five days a week during rush hour.
If we duck the reform challenge, it will not just be rail users and the public purse that pay the price; ultimately, the rail industry and the wider economy will suffer, too. So we want everyone working in rail, be it management or front-line staff, to help to make these reforms work. By reducing costs and increasing demand—set alongside this Government’s huge investment in railways—there is genuine potential to boost jobs across the industry.
Of course, it is important to reform governance, too. Network Rail is giving greater decision-making powers to its regional route directors, making it more responsive to local conditions and increasingly focused on day-to-day train operations at the local level. We welcome Network Rail’s efforts to find new and more efficient ways of managing its assets, including long-term concessions to third parties for the management of parts of the network. Network Rail is also rightly taking steps to reform corporate governance, including its management incentives package, so that it is more accountable to passengers and freight customers. I would also like to welcome its sensible decision, to be announced shortly, voluntarily to appoint a public interest director, who will ensure that the concerns of taxpayers are fully reflected at board level and help to strengthen the role of members.
It is time to give communities more control over local services, so today we are also consulting on devolving decisions about the railway to sub-national bodies. Our joint consultation with the Office of Rail Regulation on a greater role for the ORR in regulating passenger franchises closed recently. With a smarter regulatory approach, our aim is to remove Government from day-to-day industry involvement by adopting a more unified regulatory structure for the railways and we will publish our conclusions in due course.
Facing up to reality, saving fare payers and taxpayers £3.5 billion a year, reforming our railways and putting the customer first: that is what the Command Paper is all about. By working together on this package of reform, I believe that industry, the regulator and Government can generate the savings and the change we need. Lower costs, better services and ticketing that offers greater choice and flexibility, as well as a rail industry built to last because it is efficient, effective and affordable: that is what the Command Paper will deliver and I commend it to the House.
Maria Eagle
Thank you, Madam Deputy Speaker.
The question that the Government have yet to answer is this: if we are all in this together, why is the burden yet again to fall on the fare payer and not on those who are already making huge profits that are lost to the industry and that help to drive up the cost to the taxpayer of running our railway?
We cannot support these reforms. In the coming weeks we will set out our own alternative approach to reforming the rail industry, but for today I would be grateful if the Secretary of State answered a number of specific questions of concern to passengers and commuters about her proposals.
On fares, the National Audit Office has warned that the Government’s fare rises, which are adding to the cost of living crises facing households, are just as likely to increase the profits of train operators as reduce costs for the taxpayer. Will the Secretary of State confirm that the entire cost of holding fare rises at just 1% above inflation for the rest of this Parliament and strictly enforcing that cap would be less than the £543 million her Department handed back to the Treasury as a result of an underspend last year? Will she therefore abandon plans to increase fares by 3% above inflation in 2013 and 2014?
The Secretary of State said today that the days of above-inflation fare rises are coming to an end, so will she explain why the tender documents for the new franchises assure bidders that they can increase fares by up to 6% above inflation every single year of those 15-year franchises? Will she confirm that, under the plans she has set out today, train companies will be given even more freedoms on fares, including the right to introduce a super-peak ticket, which will hit hard-pressed commuters in particular?
I welcome the commitment to extend smart integrated ticketing that can be used on trains and buses, enabling the rest of the country to catch up with London. The fact that that will enable part-time workers to benefit from new flexible season tickets is particularly welcome, but will the Secretary of State explain how that will work outside London if she remains unwilling to take steps to regulate the bus network outside the capital as we proposed?
On the level of services, will the Secretary of State explain why the inter-city west coast franchise tender document allows daily service reductions of up to 10%? Will that not lead to even greater overcrowding than passengers already face? Will she explain why the final tender documents for the new franchises have also watered down the performance obligations since the earlier draft? The requirement to improve performance over the life of the franchise has been replaced by a requirement to do so unless
“good evidence can be provided as to why this is not achievable.”
Surely passengers expect the Government to insist on improvements, not simply to police the excuses that the train operating companies come up with.
Does the Secretary of State understand the concerns about the train companies’ new freedoms to close ticket offices and cut the number of staff on trains and platforms? Will she explain why the new franchises ask bidders only to consider maintaining the same level of CCTV on trains?
The structural reforms to the industry are also deeply worrying. Does the Secretary of State understand the concerns that the restructuring she proposes has a massive accountability gap at its heart? Genuine backing for devolution, which the Government have ducked today, would see transport authorities deciding the best way to deliver rail services in each region. Should that not permit alternatives to the existing franchise model to be explored, including not-for-profit and mutual options? Does she agree that for devolution to work those authorities need a fair deal on costs, subsidies and risks? This cannot be—as is suspected—about devolving responsibility for cuts.
Will the Secretary of State explain how the decision to allow deep alliances between train companies and Network Rail, with private train companies having the whip hand, fits with the need for democratic accountability? I know the Conservative party is determined to complete the job it started with its botched rail privatisation, but does she not accept that the decision we took to create Network Rail as a not-for-dividend body has served the industry well? Why is she willing to turn back the clock and take us back to the bad old days by creating what are effectively a series of mini-Railtracks? Where is the accountability to passengers, taxpayers and Parliament? How can there possibly be a level playing field in future franchise competitions if the incumbent is part of a single management team? Does she not see the clear conflicts of interest that are evident throughout her proposals?
How will Network Rail continue to support the interests of freight operators and their need to access the network in a system where private train operators manage the network in each region? Will the Secretary of State explain why long-term concessions will not simply add to the costly fragmentation of the industry? Why does she believe that breaking up and selling track piece by piece will improve performance and safety?
This long-awaited rail strategy is a wasted opportunity to address the structural issues left from the botched rail privatisation. Instead of tackling the fragmented structure of the industry that was the legacy of privatisation, the Government are instead creating an even more fragmented and costly structure with more interfaces, more need for lawyers and consultants, less accountability, and, at the same time, more freedoms for train companies to hike fares and cut services, booking offices and front-line staff. Even at this late stage, I hope that the Secretary of State will think again and instead seek to build consensus on the future of the rail industry, based on devolution and genuine local control with communities and passengers in the driving seat, stand up to private companies, not cave in to vested interests, and put passengers before profits. It is not too late for her to do that. I hope that she will think about it.
Justine Greening
Obviously, I listened with interest to what the hon. Lady said and I hope that she will at least accept that the current situation, with a rail industry that Roy McNulty says costs £3.5 billion more than it needs to owing to inefficiency, is something that we should tackle. I note that she says she is going to come forward with an alternative and it is important that she does that because if she is turning her face against this approach, she is saying that it is okay for fare payers and taxpayers to pay that £3.5 billion in perpetuity. I think that is broadly what she was saying, but I shall await with interest her alternative proposal, which she needs now to provide.
The hon. Lady talks about the burden falling on the fare payer, but that is exactly what happens now. That is one reason why there has been so much pressure for fares to go up year on year. Let me remind her that her party also recognised that problem, which is why it commissioned Sir Roy McNulty to do that work and why it struggled with the issue too, itself overseeing years of above-inflation rail fare rises. What all of us in the House should be looking towards, with the strategy we have produced, is how to tackle these issues. We want fares to remain affordable. I have stressed on a number of occasions and at several points in the documents we have released today that it is absolutely key that we make sure that fares remain affordable. The underlying objective we are trying to achieve is the end of inflation-busting fares. We also want to cut down on the level of public subsidy, as we would prefer that money to go towards reducing the deficit or into investment in other areas.
I am pleased that the hon. Lady welcomes the flexible season tickets. If we are able to push forward on smart ticketing across the country, people will be able to use that sort of ticketing not only on the railways but potentially on buses too. The Under-Secretary of State for Transport, my hon. Friend the Member for Lewes (Norman Baker), who has responsibility for buses, will be producing a strategy that includes all those opportunities in the coming weeks.
The hon. Lady mentioned ticket offices. I understand that many passengers strongly value the face-to-face channel that a ticket office provides, as can be seen in the documents. However, I remind her that when her party was in office there were large-scale reductions in ticket office opening hours. In 2009, Labour Ministers approved cuts to opening hours at 70% of South West Trains ticket offices. The Command Paper has a section on how we want stations to improve, including by having crèches at stations where that is a sensible idea. Face-to-face channels are important for people buying tickets, which is why one of the ideas in the paper is to investigate whether people could buy tickets at their local post office, library or shop, as people can with Oyster in London. All those things should mean that people have more, rather than fewer, opportunities to buy tickets face to face.
In the rest of the fares and ticketing consultation—and I stress that it is a consultation—there are some really good ideas for moving ticketing into the 21st century, including on how we can make sure that the approach to ticketing reflects working practices today and the fact that people work flexibly and part-time, rather than expecting them to fit into a ticketing approach that would be better placed in the 1980s.
I am pleased that the hon. Lady asked about devolution and decentralisation because that is possibly one of the most exciting parts of all this in the long term for local communities. It opens up an important debate about how franchises might be more spec’d up in the long term and controlled by local communities. I assure her that this is about giving local communities opportunities, not about passing on some underlying problem. Indeed, the Government are absolutely clear that we need to tackle the underlying problem of inefficiency in our railways. That is what the document is all about.
The hon. Lady raised concerns about alliancing. I think that getting the industry to work together is a common-sense approach to tackling some of the inefficiencies that exist, which are directly funded in the end by fare payers and taxpayers. Today, when asked, she was not able to rule out her party wanting to renationalise the railways, but I think that we need to make the pieces of the jigsaw fit together better. Simply throwing them up in the air again would only waste time and make it harder for the industry to take the responsibility that we want it to, and I do not think that that would be the right way forward.
Finally, I understand the hon. Lady’s concerns about freight and we are absolutely committed to making sure it is a core part of the network going forward. One of the underlying reasons for high-speed rail is to make sure we have capacity on the core network for freight. We need to make sure there are safeguards in place regarding any of these changes so that the freight industry can continue to do what we want it to, which is to re-mode on to trains.
Sir Alan Haselhurst (Saffron Walden) (Con)
I welcome the thrust of my right hon. Friend’s statement, but can she offer me some encouragement that the West Anglia line, which has lacked capacity improvements since its third and fourth tracks were torn up in the wake of the Beeching report, now has a better chance of having its track capacity enhanced?
Justine Greening
I believe that the performance on that line is starting to improve, but the document we are issuing today is all about making sure that train operating companies are in a position to deliver, and are working with Network Rail to deliver, better services for passengers in a more efficient way.
Mrs Louise Ellman (Liverpool, Riverside) (Lab/Co-op)
I welcome the Secretary of State’s willingness to look at the rail sector overall, but how much funding do the Government intend to remove from supporting the rail service? Will she explain exactly how the spiralling cost of rail fares will be addressed, overcrowding will be reduced and extra capacity can be produced where it is required, such as across the north?
Justine Greening
We recognise that we need to tackle the underlying inefficiencies in the railways, which Sir Roy McNulty identified as totalling around £3.5 billion. I also recognise that some of the network provides a broader public good and that there will therefore be a need for public subsidy. However, we need to make sure that that represents good value for taxpayer money. We are concerned about overcrowding. That is why we are investing in 2,700 new carriages, which will provide extra capacity. That is why the overall £18 billion of investment going into the industry is so crucial; that is one way in which we can improve performance. Of course, making sure the industry is financially sustainable is absolutely critical too.
Simon Wright (Norwich South) (LD)
Can the Secretary of State confirm that plans are progressing for the electrification of 800 miles of rail track? How does that scale of ambition compare with the achievements of the previous Government?
Justine Greening
That is an interesting question. I think we all understand that electrification can bring a broad set of benefits. The previous Government electrified 39 miles of line in 13 years—that is about 3 miles a year—and we have already announced that 800 miles of line are to be electrified. I hope that answers the hon. Gentleman’s question.
Mr Alistair Darling (Edinburgh South West) (Lab)
Does the right hon. Lady accept that in this industry successive Secretaries of State have found that announcing efficiencies is much easier than actually achieving them? If we do not achieve them, fares will go up or investment will suffer. Does she accept that it is absolutely essential to continue the investment that started 10 years ago, which included upgrading the west coast main line—something that had not been done for 30 years—because the east coast main line and commuter services will need to be upgraded? We must not forget the lessons of the 1990s, when 10 years of no investment had absolutely catastrophic consequences for the industry.
Justine Greening
I think that the right hon. Gentleman is right. One problem in the past has been that, every time a Government have wanted to drive efficiencies in the rail sector, they have rearranged the whole railway structure, whereas what we need to do is get the pieces that are there working better.
The right hon. Gentleman mentioned the west coast main line, which is a good example of how things can go wrong. It was pencilled in to cost £2 billion; it ended up costing £9 billion and took significantly longer than was anticipated. It is a good example of why we cannot go on like that and why we have to work with the industry and challenge it to work better itself.
Mr Edward Leigh (Gainsborough) (Con)
Exactly. Does the Secretary of State agree that politicians are useless in any industry at picking winners, and will she reassure us that this Conservative Government remain committed to a privatised industry in which competition and a market-driven approach have driven record growth in numbers, and that there will be no return to the bad old days of British Rail with stultifying ministerial control?
Justine Greening
The Labour party may not be prepared to rule out nationalisation, but I am.
Mr Tom Harris (Glasgow South) (Lab)
I am disappointed in the statement. In the time I have been in the House, I have never heard a ministerial statement so lacking in substance. This is not a statement; it is a coincidence of ink patterns on a bit of paper. The Secretary of State says that she wants £3.5 billion of efficiency savings by 2019, but she has not given us a single way of saving one penny. Was she even in the House yesterday when the Prime Minister told the nation that government was about making tough decisions? Where is a single tough decision in this statement? She does not have any solutions; all she has come up with is a series of clichés and warm words put together by civil servants not wanting to offend anyone.
Justine Greening
I recommend that the hon. Gentleman read the documents that we have published, which have a lot more of the detail that he wants. I am not going to take any lectures on tough decisions from someone who, when asked about Network Rail bonuses, said:
“Bonuses … are a matter for the company’s remuneration committee, not for Ministers.”—[Official Report, 24 June 2008; Vol. 478, c. 174W.]
I do not think that showed any backbone whatsoever.
Mr David Evennett (Bexleyheath and Crayford) (Con)
I warmly welcome my right hon. Friend’s statement today and the approach to our railways. Does she agree that we need more reliable journeys and better passenger experiences on all our trains, but particularly on our commuter routes? May I urge her to help to enhance access to stations and to improve the resilience of the network in winter weather?
Justine Greening
The industry has put substantial investment into improving winter resilience, and of course, having done that, as we could have guessed, we have had one of the mildest winters in recent years. We are much better prepared to keep the trains running in snow and bad weather than we were in the past. Reliability and punctuality are incredibly important. Today’s statement is as much about that as anything else, because a more efficiently run railway will be able to perform better.
Katy Clark (North Ayrshire and Arran) (Lab)
The Scottish Government have just closed their consultation with similar proposals that will involve station closures, reductions in staffing and higher fares. What implications will the announcement today have on Scotland, especially in relation to the block grant, with Barnett consequentials, and on cross-border services?
Justine Greening
I was up in Scotland only last week, having some helpful discussions about high-speed rail and improving connectivity with Scotland on the railway network. Scotland has a devolved settlement for transport, but I have no doubt that the Scottish Government will look carefully at my proposals today. I am always happy to talk to the Scottish Government about how we can work together to get better value out of those cross-border services.
Mr Tobias Ellwood (Bournemouth East) (Con)
Is it not curious that Labour Members always choose to gloss over their responsibilities when we debate these issues? It is their report that we are debating—the McNulty report—which says that there are £3 billion of efficiencies to be had. I congratulate my right hon. Friend on the leadership that she is showing in bringing together the Government and the rail networks to achieve better service for our customers.
Justine Greening
I appreciate my hon. Friend’s kind words. As the right hon. Member for Edinburgh South West (Mr Darling) set out, we have no mean challenge ahead of us, but we know the direction that we want to travel and how we are going to get there. The key now is to make sure that we implement that and that I work with the industry as it gets on with this.
Hugh Bayley (York Central) (Lab)
I think I am the only Member in the Chamber today who served on the Bill Committee that considered the Railways Bill that privatised the railways almost 20 years ago. We were told at the time by Conservative Ministers that privatisation would drive down costs and increase efficiency, but we know now that that was not at all the case. Privatisation cost thousands of railway jobs. I still have hundreds of railway jobs in my constituency, but what assessment has the Secretary of State made of the number of jobs on the railways that will be lost as a result of her statement, nationally and in my constituency?
Justine Greening
There has never been a better time to be working in the railway industry. We have record investment going into the industry; it is unprecedented since Victorian times. I have spoken to both Network Rail and the TUC about how we can work harder to develop careers in the railway industry and get more women working in the industry—only 13% of Network Rail’s employees are women. There is a huge opportunity ahead of us, not just for passengers and taxpayers but for staff. I hope that everyone can work together to deliver efficiency improvements from which everyone benefits.
Dan Byles (North Warwickshire) (Con)
I thank my right hon. Friend and warmly welcome the statement, which shows a clear commitment to improving the existing rail network. However, we cannot completely separate the high-speed rail project from rail reform. Will my right hon. Friend reassure the House that the colossal sums of money being invested in high-speed rail will not in any way minimise the investment going into the existing railway system?
Justine Greening
They will not. We have an ambitious programme, as I have said to the House, and high-speed rail sits alongside that. It is complementary, and it is critical that we do not just improve the existing system but look ahead to the capacity that we will need on a new network.
Kate Hoey (Vauxhall) (Lab)
Is not one of the reasons why train fares in Europe are much lower than here that many countries still have public ownership of their railways? Does the Secretary of State accept that the statement is just a green light for the mostly foreign-owned train operators in this country to have a feeding frenzy on raising fares so that they can keep the fares down in their own countries?
Justine Greening
I do not accept that at all. I have a huge amount of respect for the hon. Lady, but this is not the time to rearrange the industry in the way that she suggests. We need to look at the pieces and then make sure that they work more effectively together. Sir Roy talked in his report about the different levels of working that the industry could do, and we are keen to see the industry work more closely together. I am sure that when the hon. Lady reads the report she will see some of the potential routes that that could take. I do not agree with her; I think the key to success now is getting the industry to collaborate more and for us to support it in doing that.
Julian Sturdy (York Outer) (Con)
McNulty suggested that rail company franchises should be less prescriptive and allow more freedom to respond to the market. Does my right hon. Friend agree that that will bring more investment into services such as the east coast main line, which was left in limbo by the previous Government, and more certainty to my constituents in York, who rely heavily on it?
Justine Greening
We need to strike that balance between granting longer franchises so that it is worth train operating companies improving services for passengers and putting in investment even when that takes a bit longer to come through because it is a bigger improvement and a bigger investment. That is absolutely right. My hon. Friend’s other point is well made; things change and we need a flexible franchising approach because, as we have seen, growth in demand and passenger numbers in the past decade has been substantial, so we need to make sure that our franchising can reflect and adapt to that.
Mr Clive Betts (Sheffield South East) (Lab)
Perhaps the Secretary of State will agree that one of the best ways to improve efficiency on the railways is to make better use of under-used track? One of the best ways to do that in urban areas is to develop tram trains, which has been done successfully in other countries while we are still considering the possible introduction of a pilot. Can she say when the pilot for the tram train in South Yorkshire is due to start?
Justine Greening
I cannot, but I will write to the hon. Gentleman to set that out very soon. I know exactly the project that he refers to and I know that it is in plan. I will tell him exactly when he can expect it to happen.
Mr Marcus Jones (Nuneaton) (Con)
Will my right hon. Friend confirm that, alongside the action that she is taking with the rail industry to reduce the cost base of running our railways, the £18 billion investment programme of upgrades and improvement, including the Nuneaton to Coventry upgrade announced last year, will go ahead?
Justine Greening
Yes, it will. That is one of the reasons why it is such an exciting time to be involved in the industry, because this unprecedented investment is being made. It is a huge opportunity for people working in the industry and for passengers. We will hopefully get the benefits of all those investments and people will really see the difference it can make to their commute and their travel when they get on the train.
John McDonnell (Hayes and Harlington) (Lab)
I worry about the right hon. Lady using the Ronseal method, because painting over the cracks in the industry might come back to haunt her. One of the implications of the statement is that 12,000 jobs are at risk, mainly those of station staff. In addition, it reintroduces the profit motive to the provision of the infrastructure, which caused the Potters Bar, Hatfield, Paddington and Southall rail crashes. Has there been an independent safety assessment of today’s proposals?
Justine Greening
Safety will always be of paramount importance as we consider any of these changes. We are currently spending £3.5 billion, money that is coming out of the pockets of fare payers or taxpayers, and that is pure inefficiency. I think that not being prepared to tackle that is irresponsible. I understand that the hon. Gentleman might have some concerns about my proposal, but is he is saying that passengers should pick up the tab for £3.5 billion? If he does not like the proposal, it is incumbent on him to come up with an alternative.
Mr Matthew Offord (Hendon) (Con)
The response of the unions to the McNulty report was to make some wild claims in my constituency about the closure of the ticket office. Does the Secretary of State agree with me, and with commuters on the Thameslink line in my constituency, that what they want is increased technology that allows them to buy tickets more quickly, simply and easily? They would also like to see staff brought out from behind glass panels in order to increase the personal security for people on the platforms, as we have seen on the tube.
Justine Greening
My hon. Friend is right. A variety of people now use the railways, and the ticketing system needs to keep up with that, but I will take this opportunity to stress again that we understand the importance of face-to-face contact, which many customers value when buying tickets. We will ensure that we bear that in mind as we approach any decisions on ticket offices.
Gavin Shuker (Luton South) (Lab/Co-op)
Sir Roy McNulty identified fragmentation in the industry as one of the major reasons why costs in the UK are so high. What will her plans to further fragment the industry do to those costs? Will they improve outcomes for passengers or increase the amount we pay in subsidy for the railways?
Justine Greening
We are not further fragmenting the industry; we are encouraging it to work collaboratively and more effectively. If by talking about fragmentation the hon. Gentleman is criticising our proposals to decentralise some decision making, I think that he is wrong.
Gavin Williamson (South Staffordshire) (Con)
The ticket office at Codsall station was closed a number of years ago and has been replaced by the fantastic Codsall station pub. My right hon. Friend has talked about allowing post offices the opportunity to sell tickets, but will she look at letting the Codsall station pub sell tickets?
Justine Greening
That sounds like a good idea that my hon. Friend’s local community might like to take forward. I encourage him to look through the document, which contains a section on how we want to see stations improve more generally.
Kelvin Hopkins (Luton North) (Lab)
I had the pleasure of meeting Sir Roy McNulty on two occasions after his early conclusion that our railways are up to 40% more expensive to run than continental railways. I suggested to him that the simple and obvious difference between them is that they are publicly owned and integrated and ours are privatised and fragmented. I suggest to the Secretary of State that we will not overcome our problems or reduce costs until our railways, too, are publicly owned and integrated.
Justine Greening
I do not agree with the hon. Gentleman. Realistically, his approach would simply involve throwing the jigsaw pieces back up in the air, which would mean years of delay and uncertainty, and of course passengers and taxpayers would continue to have to foot the bill for that, which I think would be unacceptable. We have today set out a proposal on how we will get a grip on the £3.5 billion of inefficiency. Until the Labour party has an alternative, fare payers and taxpayers would prefer it to get behind our proposals and help to make them happen.
Robert Halfon (Harlow) (Con)
I welcome my right hon. Friend’s statement and what she said about smartcards. Will she consider extending Oysterisation to outer London towns, such as Harlow, which would benefit commuters? May I also ask her to increase investment in rolling stock, when financial conditions allow, so that we can have more trains at peak times running from London to Harlow and vice versa?
Justine Greening
I am sure that my hon. Friend is aware that we earmarked £45 million in the autumn statement to enable us to extend the use of smartcards and Oysterisation further in the south-east. With regard to capacity, we are making a substantial investment with 2,700 new carriages. I would be happy to sit down with him and get his views on how his local area could benefit from that.
Sir Bob Russell (Colchester) (LD)
Fortuitously, this afternoon I am to meet representatives of Network Rail and Abellio to discuss the deterioration of the service between Colchester and London. Does the Secretary of State agree that the reality and the rhetoric are on different tracks and that if we are to reform our railways and put customers first, the fragmentation of the industry post-privatisation must be addressed? They need to talk to each other more than they do at the moment.
Justine Greening
My hon. Friend is absolutely right. That is the whole point of what we are talking about today: greater collaborative working and formal alliancing where we think that could drive better performance and better value for taxpayers’ money. It is time for the industry to step up to the plate and work together to ensure that our railway system is more efficient than it has been in the past.
Brandon Lewis (Great Yarmouth) (Con)
I warmly welcome my right hon. Friend’s statement. She mentioned the section in the report on train stations—paragraph 4.39. Great Yarmouth, like many towns across the country, has a station that is much in need of repair. May we take it from the report that in future we can look to some new, out-of-the-box thinking on innovative ways to improve our stations for passengers in future?
Justine Greening
It is time to think more innovatively. We should look at how train-operating companies can work more effectively alongside Network Rail than they have previously been able to do in order to improve the stations that their passengers use every day.
Alun Cairns (Vale of Glamorgan) (Con)
The Transport Committee in the previous Parliament accused the previous Government of breathtaking complacency. Will the Secretary of State reassure me that the significant savings that will be made as a result of the proposals she has set out today will lead to lower fares, greater reliability and more investment in rail services in general?
Justine Greening
We will be moving in that direction. Our aim is first to reduce the above-inflation fares and then to get rid of them. Of course, a huge amount of investment is being made in all the other key things my hon. Friend talked about, which I am very supportive of and, indeed, excited about. I think that it is a great time for the railways. The sort of investment that is being made to improve passenger capacity and experience is unprecedented, and we will ensure that we get every bang for the buck out of it that we can for the public.
Mr Peter Bone (Wellingborough) (Con)
I thank the Secretary of State, as I think the whole House will, for making copies of the report available before the statement, which was very much appreciated.
Is it not wonderful that we have heard socialist ideas from the Opposition Benches? They suggest that we should renationalise the railways and everything will be wonderful. Have they forgotten that under British Rail they were managing decline and putting prices up? Under privatisation far more people have wanted to get on the trains, so the solution is to find more capacity, not renationalise.
Justine Greening
My hon. Friend is right. We have seen huge increases in passenger demand. What we have heard today is really a battle between the Government Members representing common sense and the Opposition Members, representing the past.
Charlie Elphicke (Dover) (Con)
I welcome the Secretary of State’s determination to put the customer first. Does she agree that for too long the railway industry has been imprisoned by provider interest, whether greedy, bank-owned train leasing companies, bonus-hungry managers or dinosaurs and luddites from the trade unions, while the previous Government walked on by? Is it any wonder that our railways are among the most expensive in Europe?
Justine Greening
In many respects it has been an impossible situation, and certainly one that cannot continue. We cannot allow £3.5 billion of inefficiency a year to go unchecked and always to be paid for by taxpayers and fare payers. That is what this document and this strategy are all about tackling.
Bob Blackman (Harrow East) (Con)
My right hon. Friend will be aware that the RMT has threatened a national campaign of resistance, including industrial action if necessary. What message does she have for those trade union dinosaurs and for the hard-working staff in the rail industry about the potential benefits?
Justine Greening
I urge everybody to work with us to improve the railways for the sake of passengers and taxpayers. That is the decision that we all have to take. It is simply unacceptable that every year £3.5 billion of inefficiency is paid for by people across the country who cannot afford it. We have to get a grip on that, and we will do so by working together. I hope that the unions will see that there is a huge opportunity to work with us on this. There is massive investment and there is room for jobs and growth. We just need an industry that is financially sustainable so that that can take place.
Rail Reform
Justine Greening Excerpts(12 years, 8 months ago)
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The Secretary of State for Transport (Justine Greening)
I am today publishing “Reforming our Railways: Putting the Customer First”, which sets out the Government’s vision for the railways, alongside the policies that are needed to realise that vision. I am also announcing consultations on how we might move to a more transparent, modern and flexible approach to fares and ticketing; and on the opportunity to devolve power and responsibility away from Whitehall’s traditional command and control structure to the appropriate local level. I am making an oral statement to the House today to explain our approach.
Crossrail Train Procurement
Justine Greening Excerpts(12 years, 8 months ago)
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The Secretary of State for Transport (Justine Greening)
I would like to inform the House that the invitation to negotiate for the procurement of rolling stock and associated depot facilities has today been issued by Crossrail Ltd.
Together with the Mayor of London, my co-sponsor on the Crossrail project, I welcome this major milestone in Crossrail’s journey from inception to reality.
Crossrail will create vital new transport infrastructure to support economic growth. It will deliver faster journey times and a 10% increase in the capacity of London’s rail network.
Crossrail Ltd is inviting suppliers to design, manufacture, finance and service around 60 new trains and build a depot at Old Oak Common in West London. These new trains will provide around 27,000 seats, reducing congestion and bringing an additional 1.5 million people within 45 minutes of London’s major business centres.
Hon. Members will recall that the previous Secretary of State for Transport committed to consider any relevant findings of the Government’s growth review as part of this and other large-scale procurements. Hon. Members will also be aware that my right hon. Friend the Chancellor of the Exchequer published the national infrastructure plan in November 2011 and included a package of measures to reform public procurement in the autumn statement.
My Department has been working with colleagues across Whitehall and suppliers and delivery bodies to implement these recommendations. Across the transport sector we want to improve dialogue with suppliers and increase the long-term visibility of forthcoming contracts in order to strengthen the capability of the UK supply chain.
In respect of Crossrail, reflecting its stage in the procurement process, this invitation to negotiate is a clear example of how, working in partnership with the Mayor and Crossrail Ltd, we are already adapting our approach.
First, the invitation to negotiate includes requirements for “responsible procurement”. This means that bidders are required to set out how they will engage with the wider supply chain and provide opportunities for training, apprenticeships, and small and medium-sized businesses within their procurement strategy. Bidders are also required to establish an appropriate local presence to manage the delivery of the contract.
The Mayor and I are also keen to understand and communicate the benefit of this contract to the UK economy; bidders are being asked, in the invitation to negotiate, to specify from where each element of the contract will be sourced. This is not an assessment criterion in the decision process, however, the successful bidder will be required to report against their proposed estimates.
Secondly, Crossrail Ltd, which has already developed a reputation for being an industry leader in this field, will ensure that, going forward, this procurement is efficient and effective and does not involve unnecessary costs for the bidders.
In addition, this contract will provide a significant element of public investment, alongside private finance, optimising the balance of public debt and transfer of risk to the private sector. This approach will help ease the costs of debt repayments to the public purse, as well as reduce bidders’ requirements to raise debt and equity, while still transferring significant risk to the private sector, ensuring that we secure value for money. First and foremost, the successful bidder must be able to deliver the right trains and depot facilities.
Above all, I want this procurement to be a fair process that provides best value for money for the UK taxpayer and future fare payers’ and high quality, reliable trains for the millions of people that will use Crossrail services every week.
Four bidders will be receiving the invitation to negotiate having performed strongly at the pre-qualification stage and I look forward to a highly competitive process. The contract will be awarded in Spring 2014.
Oral Answers to Questions
Justine Greening Excerpts(12 years, 9 months ago)
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Lyn Brown (West Ham) (Lab)
1. What recent assessment she has made of aviation capacity in the south-east; and if she will make a statement.
The Secretary of State for Transport (Justine Greening)
The Department for Transport’s latest estimates of airport capacity are included in “UK Aviation Forecasts 2011”. These assume that no new runways are built in the UK but, where there is no explicit planning prohibition, airports develop as necessary to utilise their current potential runway capacity. Details of the capacity assumptions used are in table 2.6 of the published report, which is available on the Department’s website.
Lyn Brown
In November the Chancellor published his national infrastructure plan, committing the Government to exploring
“all the options for maintaining the UK’s aviation hub status, with the exception of a third runway at Heathrow.”
Just a month later, the Minister of State, who has responsibility for aviation, said that the Government would refuse permission for additional runways at Gatwick and Stansted, and in January the Under-Secretary of State for Transport, the hon. Member for Lewes (Norman Baker), described suggestions of a new airport in the London area as “irresponsible environmentally” and made clear his opposition. Was the Chancellor wrong to say that all the options other than the third runway will be considered? Which alternative solutions are Ministers genuinely willing to consider?
Justine Greening
To be clear, the commitment in the coalition agreement still stands, but we recognise that maintaining a competitive international hub airport is incredibly important, which is why we have agreed to publish a call for evidence alongside the new aviation policy framework in March.
Charlie Elphicke (Dover) (Con)
May I urge the Secretary of State in considering aircraft capacity to look first at the possibilities of expanding existing airports east of London, rather than building new ones, and at how the lower Thames crossing could assist with infrastructure?
Justine Greening
My hon. Friend is right to point out two things. First, we need to look at our transport system as a whole. It is about getting around, and that can involve not only aviation but railways and roads. Secondly, the matter of the hub airport is incredibly important. It is also a medium to long-term issue. We received more than 600 responses to our original scoping document. We are considering those and will take some of them forward in the strategy document we will publish in March.
Seema Malhotra (Feltham and Heston) (Lab/Co-op)
Does the Secretary of State agree that, with Heathrow supporting more than 100,000 jobs in west London, the future of Heathrow and its competitiveness needs to remain at the heart of our national aviation strategy?
Justine Greening
The hon. Lady is right that Heathrow has an incredibly important role to play in aviation, not just for London and its economy but nationally, and of course for the many regional airports with connecting flights that hub into Heathrow and have passengers who then travel onwards. We are absolutely aware of that, and it is one reason we need to take a responsible approach to looking at the future of aviation in our country.
Mr Philip Hollobone (Kettering) (Con)
If we are not going to build an additional runway at Heathrow but want London to maintain its international competitiveness, is there really no alternative but to build a new airport in the estuary east of London? Should not the Government show to that issue the same commitment that they are showing to high-speed rail?
Justine Greening
My hon. Friend, for whom I have a huge amount of respect, demonstrates why we need to have a measured approach to the issue, and he is right to point out that we now have cross-party consensus on the fact that there should not be a third runway at Heathrow. The final point that I make to him, however, is that we need to realise that capacity and connectivity are not exactly one and the same thing. We absolutely need to ensure that we have the connectivity for our aviation sector not only nationally but, in particular, at the hub airport, and in many respects that is absolutely the most important thing—to make sure that we stay competitive.
Jim Fitzpatrick (Poplar and Limehouse) (Lab)
Given that my hon. Friend the Member for West Ham (Lyn Brown) has exposed the Government’s dilemma on aviation capacity, in that they say they want to explore all options but, as she reports, have ruled out all options, and given also the report in today’s Financial Times that Ken Livingstone is against Boris island in order, as he says, to protect east London’s environment and to defend the west London economy, why has the Secretary of State not responded to the offer of my hon. Friend the Member for Garston and Halewood (Maria Eagle) of cross-party talks to explore the possibility of a national aviation plan?
Justine Greening
The door is always open to talking with the Opposition on issues of national interest.
Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)
2. How her Department will calculate the level of rail fares for services between Scotland and England in January (a) 2013 and (b) 2014.
Julian Smith (Skipton and Ripon) (Con)
4. When she expects to publish the findings of her Department’s review of brown tourist signs.
The Secretary of State for Transport (Justine Greening)
The review of brown tourist signs is ongoing, and we expect to publish revised guidelines in the summer of 2012.
Julian Smith
I thank the roads Minister, my hon. Friend the Member for Hemel Hempstead (Mike Penning), for all that he has done to sort out the brown sign debacle at Masham in my constituency. However, given that we have had quotes of £184,000 for two brown signs, will the Secretary of State look carefully as part of the review at why the signs cost so much?
Justine Greening
We have challenged the costs that were originally proposed, and they will be substantially lower. I pay tribute to my hon. Friend and to the roads Minister for working so closely with the Highways Agency to reach what should be a good solution to improving the brown signs for Masham, and I hope that we will be able to reach a successful conclusion shortly.
Sir Bob Russell (Colchester) (LD)
Will there be some consistency on brown signs around the country? During the previous Government’s period in office, the Highways Agency removed all three signs welcoming people to Britain’s oldest recorded town. Can the Secretary of State assure us that we will have our signs reinstated?
Justine Greening
I think that the roads Minister will be meeting the hon. Gentleman in the next few weeks. We are committed to seeing how we can make better use of brown signs not only to guide motorists to their destinations but to make sure that we in the Department of Transport play our role in helping the tourist industry to do well in this country.
Mark Pawsey (Rugby) (Con)
5. What discussions she has had with the European Commission on the height of trailers.
Hugh Bayley (York Central) (Lab)
9. What steps she plans to take to limit the bonuses and overall remuneration of executive directors of privately owned but publicly subsidised railway companies.
The Secretary of State for Transport (Justine Greening)
Bonuses at shareholder-owned private sector companies are a matter for their remuneration committees and shareholders. I very much welcome the decision by the Network Rail’s executive directors to forgo this year’s annual bonuses.
Hugh Bayley
I ask the Secretary of State to think further on that. Of the six private companies that receive enormous subsidies from the taxpayer for running rail franchises, only one publishes information on the remuneration of its directors—the highest paid director receives £344,000 a year. Will she consider publishing, in an anonymised form if necessary, the salaries of all directors and staff of companies that receive money from the taxpayer when those salaries are higher, say, than her own?
Justine Greening
The hon. Gentleman makes an interesting suggestion. The Government are looking across the board at how we can introduce corporate governance rules that lead to a more responsible approach by companies, and that give shareholders the ability to hold their executive to account more effectively. Transparency is a key part of the Government’s agenda too, so I shall reflect on what he says.
Mark Lancaster (Milton Keynes North) (Con)
I encourage the Secretary of State to come to visit the new Network Rail headquarters in Milton Keynes, not because I want her to interfere in remuneration—that is best left to the company—but so that she can celebrate the 1,000 new jobs that have been created there.
Justine Greening
I would be delighted to visit Milton Keynes. Network Rail is doing a huge amount of work on skills and apprenticeships. We should reflect on that and celebrate it.
Ian Lucas (Wrexham) (Lab)
10. Which transport schemes will be funded by both her Department and the regional growth fund.
Annette Brooke (Mid Dorset and North Poole) (LD)
T1. If she will make a statement on her departmental responsibilities.
The Secretary of State for Transport (Justine Greening)
It has been a busy time, and over the last period we have taken important steps to improve the experience of passengers and motorists, through measures to improve customer service in garages while keeping the annual MOT test; tackling with the industry the unacceptable hikes that people face in the cost of insuring their car; providing a fairer deal for British hauliers through a lorry road user charge; and boosting capacity on the west coast main line, with more than 100 extra carriages under the new franchise. Furthermore, through the Civil Aviation Bill, we are putting passengers at the heart of how our major airports are run and giving more protection to holidaymakers by extending the air travel organisers’ licence scheme.
Annette Brooke
How is it possible for a company to win a competitive tender to provide a bus service but to cease operating it within months, claiming that it is unviable, and causing great concern to those in villages dependent on the service and, presumably, extra expense to Dorset county council given that this service must be restored? What advice can the Secretary of State give?
Justine Greening
I am grateful to the hon. Lady for that question. She will be aware that all local bus operators must have an operators’ licence, which indicates financial standing at the time that the operator was licensed by a traffic commissioner. Local transport authorities can check with the Vehicle and Operator Services Agency whether operators hold a current licence. I am not aware of any barrier to a local transport authority ensuring, through its procurement process, whether the current financial status of a bus operator is sound, but I shall ask my officials to explore the matter further with the county council.
Steve Rotheram (Liverpool, Walton) (Lab)
T4. Will the Secretary of State explain why the latest proposals for a new high-speed rail service will see journey times to Liverpool increase compared with earlier plans, and will she accept that people in Liverpool will be rightly suspicious about why they are being left in the slow lane by this Tory-led Government?
Justine Greening
I will be happy to meet the hon. Gentleman to discuss this issue because I can assure him and his constituents that people in Liverpool are absolutely not being left in the slow lane. They will benefit from the improvements in times on the west coast main line. I am happy to talk with him about phase 2 and how we can, I hope, ensure that Liverpool benefits, as one of the cities that will not be on the line but will be in the region served by it.
Ian Swales (Redcar) (LD)
T2. In the light of research from the continent showing that high-speed rail has an adverse effect on the economy of towns and cities not on the networks, what assessment has the Secretary of State made of the impact of High Speed 2 on the north-east of England?
Justine Greening
We looked closely at the wider economic impacts. In fact, looking at high-speed rail’s impact in other countries, such as France, one sees that there has been a broader regional benefit. I am determined to work not only with the cities where high-speed rail will stop but with the broader regions served to ensure that we make the most of the huge opportunity that I think high-speed rail presents.
Seema Malhotra (Feltham and Heston) (Lab/Co-op)
T5. Lorries are involved in 19% of cyclist fatalities. Does the Minister support the call by The Times cycling campaign to require lorries entering city centres to have sensors and mirrors by law to reduce cycling fatalities?
Jeremy Lefroy (Stafford) (Con)
T8. HS2 will shape the economic geography of the country for decades. Will my right hon. Friend meet colleagues and me to discuss the importance of a stop on HS2 in the north Staffordshire/south Cheshire area, which contains the 10th largest conurbation in the country?
Justine Greening
I would be very happy to do so. My hon. Friend is quite right, on behalf of the community he represents, to want to look at how high-speed rail can benefit that community, and I am happy to have those discussions with him.
Michael Connarty (Linlithgow and East Falkirk) (Lab)
T7. First, let me thank the Secretary of State for the response from her Minister, the Under-Secretary of State, the hon. Member for Hemel Hempstead (Mike Penning), to my letter about people pulling horse boxes over seven and a half tonnes, which we have found prevents people who go to gymkhanas with their children, for example, in a larger vehicle from being able to do so, because they cannot fit in a rest period. Can she give me any idea of how long it will take for the derogation that she is seeking from the EU to allow people to carry more than one or two horses to gymkhanas in the summer?
Justine Greening
Although I cannot give the hon. Gentleman an exact timeline, I can assure him that we are working hard on this matter, and he was quite right to raise it in the first place.
Paul Maynard (Blackpool North and Cleveleys) (Con)
T9. I am sure that Ministers all welcome The Times campaign for safer cycling. What steps does the Department think it can take to ensure that cyclists join motorists in taking responsibility for ensuring their own safety while cycling—for example, by ensuring that their bicycles have bells attached and that they are not listening to music while cycling?
Margaret Beckett (Derby South) (Lab)
The Secretary of State will know that there is great interest in the city of Derby in the decision that she has to make about the procurement of eVoyager trains for Cross Country. Can she update the House on that?
Justine Greening
I believe we are making good progress, and the right hon. Lady will be pleased to hear that I am meeting Bombardier later today.
Elizabeth Truss (South West Norfolk) (Con)
In order to upgrade the service to half-hourly on the Fen line and the Norwich-Cambridge line, there needs to be an upgrade at the Ely North junction. Network Rail has conducted an economic study that suggests that this will have a positive benefit, and the Department for Transport wants to specify it in the next franchise. May I ask what progress has been made to move forward on this investment?
Garage Customer Experience
Justine Greening Excerpts(12 years, 9 months ago)
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The Secretary of State for Transport (Justine Greening)
Maintaining vehicle road worthiness and servicing is one of the most important costs of running a car for most motorists. I am today announcing the Government’s intention to work with industry and motoring organisations to improve the motorists’ confidence and experience when they have to take their car, motorcycle or other private vehicle to a garage.
Motorists are generally not experts in the mechanics, electronics or component parts of their vehicles—what matters to them is that the vehicle is safe to be on the road, that they are paying a reasonable price and that what they are paying for is necessary work carried out to a good standard. Motorists want reliable servicing and MOTs from garages they trust and it is in the interests of reputable garages to deliver to a high quality.
Almost every motorist has to visit a garage or other authorised testing station at least once a year for their vehicle to undergo an MOT test—and for many people, that minimum statutory spot-check of a vehicle’s roadworthiness is either combined with an annual service or leads to repairs and further work. Each year in Great Britain some 35 million MOTs take place at some 21,000 authorised premises—the annual cost to motorists of the test alone is in the region of £1 .5 billion. The UK car service and repair sector is worth around £9 billion per year to the GB economy.
The garage sector is regulated in several ways. The sector has to comply with business laws and consumer protection legislation. The MOT scheme is regulated by the Vehicle and Operator Services Agency (VOSA) of the Department for Transport. Self-regulation has an important role to play also. For example, around 6,500 garages self-regulate their customer service through the Motor Codes Ltd Code on Service and Repair which has full approval status under the approved codes system (OFT). And nearly 1,000 garages have been accredited with the BSI Kitemark scheme for automotive services.
The package of measures I am announcing today does not duplicate these existing controls and arrangements. But they will add value for the motorist and enhance their experience when having to deal with garages whether for an MOT test or more generally.
I am taking two immediate steps today. First, having listened closely to the very many views put forward and considered the available evidence, I have decided that I am not going to carry out further work in relation to relaxing the first test date or the frequency of testing.
Secondly, I am publishing for the first time today information gathered by VOSA about the standards of MOT testing. VOSA’s MOT compliance survey 2010-11 showed that, despite large parts of the MOT test being subjective, 88% of testers were applying correct and consistent standards. There were 12% of testers who had their overall assessment of the vehicle’s roadworthiness challenged by VOSA, suggesting there is still room for improvement. Publication of these data represents a considerable increase in transparency on the accuracy of MOT tests.
VOSA already carries out targeted work to improve this figure. However, I want to go further and make it easier for consumers to take action if they have not received the service they need from MOT testers. Further short term steps I am therefore taking are to:
engage the key motoring organisations in surveying their members over the next few months to determine the most significant and frequent problems they encounter at garages, how transparent and consistent charging and service standards are and what examples of best practice customer service they have experienced—and to publish their results;
identify and work with organisations able to carry out mystery shopper exercises that could supplement those which VOSA already carry out as part of their targeted supervision of the scheme;
work with the Motorists’ Forum to establish a sub-group to bring together a broad range of relevant motoring and industry organisations, such as the MOT Trade Forum, to help deliver the package that follows.
Over the next six months my Department will carry out the following actions:
so that consumers can be confident that the garage they choose has signed up to deliver to the highest standards, we will work with the industry and stakeholders to encourage much wider adoption of existing codes (such as that provided through the SMMT and Motor Codes Ltd) and to develop those codes to include MOT testing services. Our ambition is that it should be the norm for garages to comply with such codes;
in order to make more information available to help motorists know how the scheme is supervised, which garages perform well and which less well, we will review the MOT data gathered by VOSA and—informed by the surveys above—further improve transparency;
we will also work with industry, motoring organisations and others to make it easier for consumers to give feedback on their experiences of garages in a transparent way that others can view, and to boost awareness of existing consumer feedback tools;
we will help motorists to spot clocked vehicles by arranging for MOT test certificates to show mileage information for the last three years, and encouraging car buyers to check the full MOT history of vehicles by accessing online the authoritative MOT database;
to help motorists know how long wear and tear items such as brakes and tyres are likely to last after an MOT test, we will work with the MOT trade initially to consider whether to adjust the MOT technical test standard.
The Government intend to develop with the Motorists’ Forum sub-group a robust means by which we can measure consumer confidence over time across all garage services.
I see the above package of measures as an important element in our overall road safety policy, alongside delivering increased confidence and value for money for motorists having their vehicles MOT tested or serviced. I expect more ideas and measures to develop once the Motorists’ Forum sub-group is established, and there will be opportunities for all interested parties to contribute to the debate.
Local Major Transport Schemes (Consultation)
Justine Greening Excerpts(12 years, 9 months ago)
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The Secretary of State for Transport (Justine Greening)
Today I am launching a consultation paper to take forward discussions for deciding a new devolved system for prioritising and funding local major transport schemes for the next spending review period—schemes which have cost over £5 million.
The previous Government’s regional funding allocation process failed to give local people and communities proper transparency for decisions, and control over spending—investment decisions were taken centrally and it was a bureaucratic and inefficient system which hampered local enterprise and delivery. The Government have already made efficiencies on the programme of schemes inherited from this process. In total, schemes commencing construction in this spending review period are forecast to deliver benefits of around £8 for every £1 of public money spent, with a 34% reduction in the central Government contribution compared to previous plans.
We now have the opportunity of developing a new system for beyond 2015. A system which ensures that the best outcomes are achieved for the economy while balancing the need for developing sustainably and reducing carbon emissions; a system which hands real power to local communities; and a system which is fit for purpose in practical delivery terms.
As local major transport schemes can take on average four years to move from business case to the start of construction, it is vital that we begin to develop a new system now. And to fully empower local areas means giving them freedoms and flexibilities they have not had before.
Proposals set out in the consultation paper include: using a population based formula to allocate funding rather than putting in place a costly bidding process; a locally led assessment process for prioritising schemes, reducing the role of central Government which many local areas perceive as costly, time-consuming and autocratic; and putting Local Enterprise Partnership areas in the driving seat over which transport schemes are delivered.
The Government are proposing to devolve decisions to democratically accountable local transport bodies involving Local Enterprise Partnerships and local authorities, which are given responsibility for establishing a prioritised programme of schemes for investment. These local transport bodies would oversee the delivery of individual schemes, but would not be the vehicle for delivery, which would remain with individual local authorities or other relevant delivery agencies.
Local Enterprise Partnerships would be central to decisions, to ensure that transport investment is fully aligned with plans for economic development. Local Enterprise Partnerships can play a strong role in helping to make the tough trade-offs between competing priorities and will have a say in investment financing. Transport authorities, however, would also be crucial given their expertise, responsibilities and leadership role on transport matters.
The new system would encourage decision-making across Local Enterprise Partnership boundaries to local transport consortia—groupings of Local Enterprise Partnership areas—in order to manage a handful of big schemes, which were experienced under previous systems.
However, the Government will not force consortia formations, which would risk creating ineffective and artificial partnerships that lack legitimacy.
Instead it will be for local areas to decide what collaborations are right for them and to prioritise eligible transport interventions, which they collectively agree to deliver local growth.
In return for greater devolution, central Government will need assurances on effective governance, financial management, accountability and the achievement of value for money—matters which businesses and local authorities do every day.
In particular, the Government propose that while local areas will have the freedom to decide their own priorities and appraise individual schemes, all schemes would need to follow the Transport Business Case framework and be appraised in line with webTAG, the Department’s best practice and well-evidenced guidance on transport appraisal and evaluation.
Individual schemes would also be expected to be dealt with transparently, in particular through the publication of business cases at each stage of scheme development, individual schemes meeting minimum value for money thresholds, ongoing review and monitoring, and pre and post delivery evaluation of scheme benefits.
The offer of devolution will be available to all, but different local areas will have different challenges and ambitions. The Government will take an individual approach with each local transport body to put in place a tailored system that is fit for purpose and secures value for money for the taxpayer.
I welcome responses to the consultation paper. The consultation runs from 31 January 2012 until 2 April 2012. This is shorter than the usual 12 weeks but will help ensure there is a system in place which enables local areas to begin to construct schemes by 2015.
Following the end of the consultation, my Department will consider all responses and produce a summary report alongside setting out the next steps. I will make a further statement to the House at that point.
Civil Aviation Bill
Justine Greening Excerpts(12 years, 9 months ago)
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The Secretary of State for Transport (Justine Greening)
I beg to move, That the Bill be now read a Second time.
A successful aviation sector goes hand in hand with a growing economy; they are two sides of the same coin. That is why we need to ensure that the regulatory framework for civil aviation in the UK enables the sector to make a full contribution to economic growth, without compromising the high standards consumers rightly expect from the industry. Passengers are the lifeblood of successful aviation, so, above all, the Bill puts the interests of the consumer first, enabling the regulator to address the things that passengers care about most.
The aviation industry in the UK is vital and dynamic, and it has changed dramatically since the current regulatory framework was introduced in the 1980s. In many areas, competition has flourished and passengers have benefited, but while the industry has innovated and diversified, much of its regulatory framework has remained fixed and inflexible. There is compelling evidence that the current regulatory regime is distorting competition between airlines and needs to be reformed. When competition is distorted, the people who suffer are the consumers and customers—the 211 million passengers who travel by air each year and the freight customers who rely on aviation to transport their goods quickly and efficiently and make reliable connections with global markets.
We need only recall the scenes at airports closed by bad weather last winter to be reminded just how much people can suffer when air travel lets them down. The current regulatory regime proved itself a blunt and ineffective tool when it came to dealing with the issues that arose last winter—and we need to put that right.
With our independent Civil Aviation Authority we already have a world-class expert regulator with a first-class track record on safety, so the aim of this Bill is to give more responsibility to the CAA and to provide a better regulatory framework that would enable it to introduce more flexible and proportionate regulation and to take timely action on the issues that matter to passengers.
The Bill will devolve more responsibility to the specialist regulator for aviation, and will remove regulatory functions and unnecessary intervention by Government. It will also ensure that the CAA operates in a transparent and accountable manner, so that when appropriate it can carefully weigh up the costs and benefits of regulation as an integral part of the decision-making process. As a result, future regulatory intervention will be directed only at areas in which it is strictly necessary. For the first time, the regulator will be allowed to give the public reliable information about the sector’s performance and its environmental impacts, and about measures taken to address them. Moreover—this will be important as we work to reduce the deficit—the Bill will substantially reduce taxpayer funding for the regulation of aviation. It surely makes sense for the costs of regulation to be met by the sector itself.
The Bill focuses on three key areas: reform of the economic regulation of airports, a range of measures giving the CAA a role in aviation security and in the reform of its own regulatory framework, and reform of the air travel organisers’ licensing scheme to improve the protection of passengers. I will explain each of those in turn.
Let me begin with the importance of competition and the economic regulation of airports, a vital area that accounts for two thirds of the clauses in the Bill. Most airports up and down this country are subject to effective competition and do not need economic regulation, but for the small number with substantial market power, economic regulation is vital to defend consumers’ interests.
The case for reforming airport economic regulation is compelling. Few people would claim that the current regime, which, after all, was designed 25 years ago, is giving passengers the quality of service that they deserve. The industry and the regulator have urged change as well, and three years ago the Competition Commission concluded that the legislative framework distorted competition between airlines by adversely affecting the level, specification and timing of investment at airports and the service that passengers receive.
Pete Wishart (Perth and North Perthshire) (SNP)
Does the Secretary of State think that the takeover of British Midland International by the British Airports Authority will increase competition in the provision of air services to Scotland? What will the Government do to ensure that slots at Heathrow will be protected for the purpose of transport between Scotland and the rest of the United Kingdom?
Justine Greening
The hon. Gentleman is right to raise an issue that we also consider important. BAA also wants to ensure that it remains competitive, with connections to new markets, and that is the balance that we want to be struck. I know that the subject was raised last week at Prime Minister’s Question Time, and I know that the Prime Minister takes careful note of such matters. The hon. Gentleman will be aware of the work that the Government did to help ensure that we kept the connection between Northern Ireland and Newark airport in New York. We are strongly committed to ensuring that we have the connections between airports and across the country that our economy needs to be successful.
Part 1 of the Bill replaces the current framework for the economic regulation of airports with a flexible, modern regime designed to put consumers first. The current “one size fits all” system of economic regulation is rigidly focused on a five-year price control regime. The Bill replaces that with a flexible licensing regime which can be directed at areas where regulation adds real value, and which will allow the CAA to reduce or remove unnecessary regulation. The CAA will have the power to incentivise and improve airport resilience, and to take more speedy action to tackle poor performance. When competition in the market grows, airports will be removed from regulation when that is in passengers’ interests.
I understand the importance of clear and certain decision-making to the ability of businesses to make long-term investments in our transport infrastructure, particularly when billons of pounds of investment are at stake. Independent economic regulation ensures that there is no political interference, which is why it is such a common feature of modern economic regulatory regimes. The Bill will remove the Secretary of State’s role in deciding which airports are regulated and will give that responsibility to the independent CAA, which will need to make decisions based solely on the need to regulate and to protect the interests of consumers.
Gavin Shuker (Luton South) (Lab/Co-op)
The Secretary of State has said that the CAA will have additional powers and responsibilities. Will she say a little more about that? I find it odd, for instance, that it is excluded from the remit of the National Audit Office.
Justine Greening
The hon. Gentleman correctly points out that exclusion and I will address his point shortly. When Sir Joseph Pilling reviewed that matter in 2008 he concluded that the current approach was appropriate.
Importantly, the CAA’s decisions will become more accountable because the Bill will provide greater access to challenge regulatory decisions. As the CAA discharges its responsibilities, it is essential that its decisions are guided by the needs of customers. Therefore, clause 1 establishes for the first time a single, clear, primary duty on the CAA to further the interests of consumers—all passengers and owners of air freight both now and in the future—and, wherever possible, to do that by promoting competition.
Some airlines have argued that the CAA’s duty should be extended to airlines as users of airports, alongside passengers. The airlines are important of course, but I am in no doubt that if conflicts of interest arise between airlines and passengers, the regulator must be squarely on the consumer’s side. To protect consumers at all airports, the Bill gives the CAA powers to enforce competition law concurrently with the Office of Fair Trading in the airport services sector.
Mr Tom Harris (Glasgow South) (Lab)
The Secretary of State makes a valid point about what should happen if a conflict of interests were to arise between passengers and airlines. However, can we not address this issue by stating in the Bill that the CAA’s prime obligation is to passengers and that the airlines are specifically a secondary priority?
Justine Greening
I do not think we need to go that far. As I have said, the Bill’s key purpose is to provide clarity on what the CAA must focus on primarily, which is consumers. It is important to provide that clarity.
Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)
The Secretary of State rightly points out that consumers’ interests can be protected by promoting competition and thereby giving passengers greater choice, but how does the Bill address situations that cannot be dealt with by more competition, such as passengers facing long queues to get on and off planes? In the short term, that will not be addressed by competition, so how might the Bill help in such respects?
Justine Greening
The Bill cannot deliver absolutely everything in respect of the aviation industry. It will, however, deliver a key element of the regulatory framework that will sit alongside how the industry operates. Competition is working. We need only consider the investment that both Heathrow and Gatwick are putting into winter resilience to see that passengers will make a choice between those two airports based on which one they believe they can rely on. As a result, we are seeing competition lead to far more investment on that side of airport operations. I have seen that development for myself, and I greatly welcome it. Providing the CAA with these new powers will promote effective competition by enabling the CAA to make use of its specialist knowledge and to co-ordinate its use of economic regulation and general competition powers.
Turning to modernising the regulators’ wider role, part 2 of the Bill includes changes to how the CAA operates by improving transparency and accountability, removing unnecessary Government funding and involvement and cutting red tape. Transparent information is of huge benefit to the public. It gives all of us as consumers the means, if we want to use them, to compare different services on offer to us and to judge for ourselves which we want to buy. In keeping with this approach, clauses 83 and 84 introduce two new information duties for the aviation regulator, to serve the interests both of consumers and those affected by air travel.
The CAA would arrange for consumer information to be published to help passengers and freight users make more informed choices about what is on offer, while having regard to the principle that the benefits of information should outweigh the cost. Similarly, the CAA would publish information for the public about the environmental effects of civil aviation in the UK, and the measures taken to limit environmental harm. What is more, it would be able to use both those powers to issue advice and guidance to the industry so that it can improve standards of service and operate more sustainably. As we modernise the legislative framework, we are taking the opportunity to give the CAA new freedoms to appoint its own executive directors and to carry out criminal proceedings without recourse to Government. As criminal proceedings can be both slow and costly, the Bill would also enable the Secretary of State to give the CAA powers to enforce existing offences through civil sanctions where they are more proportionate.
The Bill also includes some other measures enabling the disclosure of anonymised medical data about aviation workers who are subject to health checks by the CAA. That would pave the way for valuable medical research into the particular health risks for specialist workers such as flight crew and air traffic controllers.
Let me move on to our proposals to improve the regulation of aviation security. This section of the Bill is relatively short, amounting to just five clauses and two schedules, but I know the House will rightly consider it carefully. Above everything else, passengers expect the highest levels of safety and security.
For me, keeping people safe and secure when they travel is and will continue to be of key importance. At present, aviation safety is regulated by the CAA while security regulation is carried out by officials in the Department. The CAA has an excellent track record as a safety regulator, as good as any in the world, and it has empowered our airlines and airports to develop safety management systems that keep safety at the heart of their operations, striving for ever safer and more efficient systems. That is why I believe there would be real benefits to bringing the CAA’s impressive specialist expertise to the regulation of aviation security.
In the past, security regulation has been criticised for being too process-driven, too often relying on a tick-box approach. Although those arrangements have kept people safe, too often their inflexibility has caused frustration on the ground at airports. There would be attractive benefits for passengers if we could empower the experts to find the best and most efficient way of maintaining the highest levels of security for air travel. That means more involvement from the experts in aviation operations, which can bring real benefits. Of course, it is essential that the Secretary of State should stay responsible for aviation security policy and for giving security directions, although it also makes sense for the specialist expert regulator to have a role in maintaining and improving aviation security. Consequently, the Bill includes provisions for the CAA to keep under review security directions made by the Secretary of State and for it to provide advice and assistance to the industry and Government. With its track record in handling safety, I believe the CAA will approach those new responsibilities with the rigour they deserve.
Mr John Leech (Manchester, Withington) (LD)
Can we be assured that the transfer of staff from the Department to the CAA will not result in a loss of expertise in the security sector within the Department for Transport?
Justine Greening
We have considered that very closely and it is one reason why these changes will not happen overnight. They will take place over the next two to three years so that we can ensure we get the right staff transferred with the right expertise. As my hon. Friend points out, we have a wealth of security expertise within the Department and across Government and that will still be there for us to draw on within the Department for Transport. I am assured of that.
Maria Eagle (Garston and Halewood) (Lab)
Is the right hon. Lady at all concerned that the division of responsibilities will create new interfaces that might cause delay and problems in the swift implementation of policy?
Justine Greening
That is a very fair question and it is one that I have considered carefully, too. I do not believe that it will cause a problem at all; in fact, it will enhance the security approach that we are able to take. It will mean a far more ongoing and rigorous approach to security that will manage to combine the highest standards of security and safety at airports while delivering a more streamlined approach for passengers on the ground. That is better for everybody.
Clause 82 makes provision for the transfer to the Civil Aviation Authority of rights, powers, duties and liabilities as the Secretary of State considers appropriate. That will allow us to transfer to the CAA the experienced staff who carry out the regulatory compliance and vetting functions currently carried out by civil servants in my Department. That will not only devolve more responsibility to the CAA but will have the further advantage of bringing the “user pays” principle to aviation security. It is not right or fair that the taxpayer currently subsidises the cost of aviation by paying for its regulation. At a time when our overriding priority is to reduce the inherited debt and when difficult choices are being made about funding priorities it is right that the cost of regulatory compliance should be met by the industry that benefits from it and not by the taxpayer.
Dr Andrew Murrison (South West Wiltshire) (Con)
Has my right hon. Friend considered the impact of the transfer of powers from the Department’s Transport Security and Contingencies Directorate to the CAA on TRANSEC’s residual functions, particularly in relation to maritime safety and elements of rail safety?
Justine Greening
Yes, we have considered that and we are very happy that we will continue to strike the appropriate balance in our internal departmental expertise on security in all those areas. That is absolutely vital and we will not compromise on it in any way. We seek to have a more proportionate and smart approach to ensuring that we maintain the very highest standards of security and safety in our airports.
The final area of the regulatory framework that the Bill seeks to reform is the regulations covering the air travel organisers’ licensing scheme, or ATOL as it is known to millions of people each year. Those people have the peace of mind that comes from knowing that their package holiday is financially protected and that they will not be left stranded if a travel company becomes insolvent. Since the scheme was set up the holiday market has diversified, partly due to the innovations that internet booking has allowed. As a result, the holiday industry has told us that it is no longer clear to consumers whether their holiday has the protection of ATOL. Clause 94 will allow us to make regulations to improve clarity for the consumer by adding more flight-based holidays into the ATOL scheme, including holidays sold by airlines. That will mean that businesses selling holidays that include a flight should have a more coherent and consistent regulatory framework in which to operate.
Mr Peter Bone (Wellingborough) (Con)
I refer hon. Members to my declaration in the Register of Members’ Financial Interests. This area is very important because it is not clear to consumers at the moment whether they are protected or not, with some people on a flight being covered while others on the same flight are not. I do not think the Government are going far enough in that they are not going to say that all people on all flights are covered, but why not?
Justine Greening
No doubt my hon. Friend will want to return to this issue in Committee, but I think that our proposals are measured and will mean a real step forward in the number of consumers that ATOL can protect, while also making ATOL more financially sustainable in the longer term, which is important. The clauses that relate to the reform of ATOL are long overdue and are welcome. I appreciate that he might want them to go further and I look forward to having that debate in Committee because this is an incredibly important aspect of the Bill for people up and down the country who want to be able to book their holiday knowing that it has the protection they want behind it.
In conclusion, the Bill brings together the Government’s commitment to having a successful and sustainable aviation sector with our agenda on regulation. It will allow the CAA to modernise the way it regulates, bring a stronger consumer focus to its activities and improve transparency and accountability. It will also create a stable environment for investment in airports and will allow the UK aviation sector to continue to thrive and develop. I commend the Bill to the House.
Maria Eagle
The hon. Gentleman is correct, and proper security is always a balance between managing to make sure that the efforts of those who wish to commit terrorist offences on planes are foiled while, at the same time, not wishing to subject consumers and passengers to indignity or extensive delay. It is correct that the Department should have a full understanding of the extent of any threats so that it can make appropriate policy. It is just in those areas that we want to probe a little more in Committee precisely to assess the practical impact of the proposals.
It is unfortunate that the introduction of the Bill and its Second Reading should come so soon after the publication of the draft Bill. Considering that this package of reforms has been in preparation for many years, and given that it was widely believed that its introduction had slipped to the next Session, it is unfortunate that there has been a sudden rush of last-minute enthusiasm to bring it before the House. Consequently, the planned pre-legislative scrutiny, which we supported, has been curtailed. The Transport Committee has done its usual impressive job, but it had just three weeks to take evidence and produce recommendations on the proposals, many of which have been in gestation for six years or more. That meant that the Government have not been able to consider those recommendations in detail and improve the Bill before its introduction. Consequently, we are debating a Bill—and I hope that this is the case—that will doubtless be amended by the Government in Committee, which is a remarkable state of affairs for a measure so long in preparation.
The industry itself has rightly expressed concern about the limited opportunity it was given to engage with officials before the Bill’s introduction in Parliament. BAA, it is fair to say, may be affected more than other player in the industry by the measure, yet it says that it could secure only a single one-hour meeting with the Department for Transport in the past three months, which falls short of what might be expected for a regulatory Bill of this nature. There will be, at the very least, a suspicion that the hasty introduction of the Bill has less to do with the industry’s needs and more to do with the needs of business managers, who doubtless begged the Secretary of State to let them have something for the Commons to do, because the Government’s legislative programme is bogged down in chaos in the other place.
Justine Greening
I have met BAA on a number of occasions since taking on my present role, so I can assure the hon. Lady that there has been plenty of opportunity for BAA to raise any concerns with me.
Maria Eagle
I am grateful for the right hon. Lady’s intervention. I was just quoting what BAA said, and I hear what she says about her own efforts, which I commend.
There are three key reforms in the Bill—to economic regulation, to the Civil Aviation Authority itself, and to the transfer of security functions. I want to turn briefly to the wider aviation context within which the reforms will sit. We agree that the current framework for airport economic regulation is outdated and needs reform. It has been clear for some time that the CAA does not have the powers to apply the regulatory regime in a way that best benefits passengers and reduces costs for the industry. We are also dealing with a very different aviation landscape since the introduction of the existing regime, not least because of a major increase in passenger numbers, low-cost airlines, growth in regional airports and changes to ownership required by the Competition Commission. The proposed licensing regime, together with a more flexible and targeted set of regulatory tools, will better enable the CAA to carry out its work, while making its decisions more accountable, and reduce unnecessary regulation.
It is also right that the regulatory regime governing airports be reformed to put passengers at its core. The CAA’s primary duty should be to promote the interests of passengers. That was our intention in developing the reforms, and we are pleased that that approach has been accepted and adopted by the Government. We hope that in Committee the Minister will look carefully at the arguments that have been made and be clearer about how the CAA is to weigh the often differing interests of current versus future air transport users and, as the Select Committee has urged, explain in more convincing detail how the proposed aviation consumer advocacy panel will work in practice and, in particular, how it will identify, represent and promote the interests of passengers and relate to the regulatory process.
The lack of a specific requirement to publish passenger welfare plans is a major omission and should be addressed. It was a key recommendation from the Select Committee following its inquiry into the failure of both Government and industry to prepare and respond adequately to the severe winter weather in December 2010. The appalling experience faced by many passengers, particularly at Heathrow, demonstrated the need for the sector significantly to up its game in relation to passenger welfare. I welcome the new powers that the legislation will give the CAA and the Government and hope that the Secretary of State will issue clear and robust guidance to airport operators on winter resilience. However, we would like to see a specific obligation on the CAA to include in any licence issued a requirement that airports provide support to stranded passengers.
The Government must also ensure that each recommendation of the Quarmby report on the resilience of England’s transport systems in winter is implemented, particularly those relating to the need for early decisive action on whether to cancel services; the supply of de-icing and anti-icing products or road salt; better liaison between airports and local highway authorities over the treatment of appropriate public road networks; and improved access to performance statistics on the management of disruption by airlines and airports.
The former Transport Secretary, the right hon. Member for Runnymede and Weybridge (Mr Hammond), stood in the snow at Heathrow just over a year ago and pledged to learn the lessons of the chaos passengers faced. I know that because I was standing in the snow freezing alongside him and, more importantly, alongside thousands of stranded passengers. At the time he blamed Heathrow for seriously underestimating the amount of de-icer required and raised the prospect of establishing a central reserve for emergencies, much as exists for road salt. The Government should provide an update on this—they have gone quiet lately—and on the other promises made at the time. As well as the powers that this Bill rightly gives the CAA, the current Secretary of State must ensure that the Government do not take the view that this is all the responsibility of the industry. There is a strategic and economic need, as well as a UK reputational requirement, for the Government to get a grip on winter preparedness. I recall the Minister responsible for aviation telling the media on Boxing day 2010 that the Bill would do just that, but it is not obvious to me that it does it sufficiently well, so we will explore that further.
The CAA should also be required to focus licences on the specific experience of passengers in airports. That means, as the Transport Committee has urged, specifically structuring licences to address key areas of passenger satisfaction, including immigration and baggage handling. We all know that the failures that most give rise to frustration and anger, not to mention ruining business trips and holidays, are delays caused by inadequate management of immigration and poor baggage handling. Of course, although airports should rightly have obligations in this respect, the Government must also recognise that their decisions have an impact that is out of the hands of airport operators, not least the way they resource and manage the UK Border Agency. The speed and scale of the Government’s cuts is putting pressure on the agency. People across the country fear that corners are being cut and border security is being put at risk by the scale of the Government’s border cuts. Some 6,500 staff are going from the agency, with 1,500 going from the UK border force, including more than 800 this year alone. In the past year, we have already had the situation whereby the Home Secretary did not know what changes to border controls she had agreed to, how they were being implemented or how great the security risks were, and relaxing controls was a direct consequence of those staffing reductions.
It is incredible that the Government have overseen a reduction in checks at border control. The public expect proper immigration controls, and passengers expect there to be sufficient staff to prevent massive delays at airports, which damage our image and can impact on investment and business competitiveness. We agree that the passenger must be placed at the heart of the regulatory regime, but the Government must do the same as they carry out their responsibilities.
The Government should also consider the airlines’ case that, in the context of airport regulation, they too are customers. Although we agree with the Government that the law should be absolutely clear that the CAA’s primary duty is to passengers, we agree also that there is a case for a secondary duty to airlines, so the Minister should look again at the decision not to include such a duty.
Although it is right that we set out a primary duty on passengers to send a clear signal to the CAA about how it should manage competing interests, it is right also that we set out further duties. In doing so, however, the Government have chosen to omit the reference to environmental obligations that we intended the Bill to include. That is a mistake, so I very much hope that the Minister will reflect on it and think again.
Back in March 2009, the consultation document on economic regulation that the then Secretary of State published proposed that
“the CAA should have an environmental duty with respect to its economic regulatory functions.”
The final report of the Cave review recommended
“a duty on the CAA to protect the environment, subject to guidance on specified environmental matters by the Secretary of State.”
In December 2009, the previous Government published their decision document on economic regulation and concluded that one of the supplementary statutory duties should be
“to have regard to the airport operator’s legal obligations to comply with applicable environmental and planning law.”
When one considers the secondary duties that have been set out, one finds the absence of any environmental obligation to be a clear omission—and a late one: it was included in the press release accompanying the publication of the Bill, just not in the Bill. The CAA will be obliged
“to ensure that licence holders can finance the activities which are subject to the relevant licence obligations; to secure that all reasonable demands for airport services are met; to promote economy and efficiency on the part of licence holders in its provisions of airport services at regulated airports; to have regard to guidance issued by the Secretary of State; to have regard to any international obligation of the UK; to have regard to principles of better regulation.”
All those obligations are of course right, and we support them, but there seems to be no justifiable reason for removing the proposed additional requirement on the CAA in terms of economic regulation: to have regard to airport operators’ compliance with environmental and planning law. Without that, airports may be reluctant to invest in improving environmental performance, be it noise, vibration, visual disturbance or emissions.
It is not good enough for the Government to say it is obvious that airports must comply with statutory obligations and it does not need re-stating in the Bill. The issue is whether airports feel that they can recover the cost in charges to airlines. The consequence, as the Transport Committee has warned, is:
“Without giving the CAA a supplementary duty on the environment in relation to its economic regulation role, there is some risk that airports may be reluctant to invest in improving environmental performance.”
Maria Eagle
I thank the hon. Lady for her intervention.
There are precedents within the EU of a single company controlling a larger percentage of slots at one airport, but I am sure that the Secretary of State will appreciate that the situation at Heathrow is different because of the capacity issues that significantly restrict the potential for competition. I fully understand and respect BA’s wish to expand its operations, not least to pursue the new long-haul markets from Heathrow that are needed for our economic competitiveness. However, many years before a high-speed rail service becomes a reality between Scotland and London, and Heathrow in particular, we must balance that with the need to maintain the domestic air links on which the Scottish economy depends.
I have two final points on the economic regulatory aspects of the Bill. First, there are concerns that there is no requirement on the CAA to consult on how it intends to prioritise and balance its new duties and discretion. Secondly, the Government must clarify who does and does not have a right of appeal on a decision by the CAA in respect of licence conditions, and how they intend to prevent repeated and unfounded appeals.
On the second major purpose of the Bill, which is to modernise the CAA’s governance, we agree that reform is needed and we support most of the proposed changes. Of course, there are changes that have been made without the need for legislation, such as the creation of a separate chair and chief executive. We do, however, question the decision to remove the requirement for the Treasury to approve the levels of remuneration for non-executive members of the board. Are we not seeing right now the need for greater, not less oversight of remuneration? I suppose that the experience of the past few days has shown that it is doubtful whether the Government would exercise their powers over excessive bonuses even if they retained them, but it might be a good idea to hang on to them.
It is also wrong that the CAA remains outside the remit of the National Audit Office, unlike all other industry regulators. That should be addressed, and there should be an explicit efficiency duty as recommended by the Transport Committee. I hope the Government will agree that it should be relatively straightforward to reach agreement on those issues in Committee. We agree on the outcomes that we want to see achieved through the modernisation, and I look forward to working with Ministers to improve the Bill further in the areas that I have mentioned.
We have much greater concern about the third major area with which the Bill deals, which is the Government’s proposals for a major change in how aviation security in ensured. They have not made the case for the change. It was included in the draft Bill at the last minute and has not been subjected to adequate scrutiny, and enough people across the industry have concerns about the proposals to require the Government to look again at whether they have got them right. We are open to being persuaded, but Ministers have more to do if they wish us to support the proposed changes.
I appreciate that under the Government’s proposals, the Secretary of State will remain responsible for aviation security policy and for making aviation security directions under the Aviation Security Act 1982. That is well and good and correct, but by enabling the transfer of a potentially very wide range of security functions to the CAA, the Government risk fragmenting an approach that has served us well. Let us not forget that the current arrangements, including the now abolished specialist unit Transec, arose from the tragedy of Lockerbie. We should not move lightly away from an approach that had such a tragic loss of life as its reason for existing, particularly not when the clearly stated purpose of the proposals is, to quote the Department’s impact assessment, to
“Reduce the costs to the taxpayer in line with SR”—
spending review—
“commitments by introducing the user pays principle.”
The changes that the Government propose are not minor. For example, they want to pass to the CAA the obligation to make arrangements for carrying out vetting, including those for renewing and withdrawing clearance. The CAA, rather than the Secretary of State, will maintain the list of persons approved for the provision of a particular aviation security service.
There are also concerns about the ability to retain staff. The Bill will allow for the transfer from the Department for Transport to the CAA of about 85 aviation security posts currently responsible for the review and upkeep of aviation security regulations, and for the monitoring and enforcement of the industry’s compliance with security requirements. The Transport Committee’s recommendations on that matter should be considered carefully, including the permitting of secondments rather than transfers to avoid the loss of experienced staff and expertise.
The Committee’s recommendation to delay the change, to bring it in line with the introduction of the outcomes-focused risk-based security regime, also makes sense. The airlines are concerned about the lack of transparency of the likely costs of the changes, and therefore about the impact on passengers, on to whom costs will be passed. There is real concern that although the costs of the transfer will materialise, the supposed reduction in obligations as a result of the move to the outcomes-focused regime will not.
Those concerns are particularly acute for smaller regional airports, which play a vital role in their local economies and will not easily sustain major additional cost burdens. The Government need to reassure the sector that they will retain an active engagement in operational matters, enabling airports to take the lead in the knowledge that they will have ministerial backing.
It is clear that there are growing tensions between the UK Government and the EU over security issues such as the permitting of full-body scanners without a right to select an alternative form of search. We have strongly supported the Government’s stance on that, although it is now important that Ministers work closely with their European partners to ensure a common, and preferably similarly robust, approach to security across the EU. The approach taken in the Bill risks leaving the industry without a clear lead or protection from Government on the decisions that it takes, be they on trials of new forms of security screening or other matters.
According to the explanatory notes, the Government’s Regulatory Policy Committee estimates that
“the impact on public expenditure gives expected savings in the order of £5.4m per annum.”
It is far from clear how the cost savings to the Department from the abolition of the security function can be secured without putting at risk high levels of aviation security or imposing a burden that will ultimately fall on passengers.
The Regulatory Policy Committee also identified transitional costs of transferring the security function of approximately £1.5 million, as well as ongoing costs beyond the transition, not least because
“the CAA will be responsible for upgrading systems in perpetuity”.
It is therefore
“likely that the CAA may borrow from the National Loans Fund to fund IT improvements.”
I appreciate that the Secretary of State inherited her predecessor’s plans to meet the 15% cut in the Department for Transport budget. She has shown a willingness to look again at some of his rasher decisions, and I hope that she does so in respect of that major change to aviation security, for which the case has not yet been made.
I urge the Government to think again about one other aspect of their aviation policy. An announcement is expected in the Budget—if not before—on the sale of their remaining stake in NATS. Recent media reports have suggested that DFS, Germany’s state-owned air traffic service, has been in talks with the Government. Yet again, just as with our rail industry, the Government’s ideological obsession turns out to be not so much opposition to a public stake in delivering transport services as an opposition to a British public stake in doing so. Just as the Dutch national railway will this week begin to operate the East Anglia franchise, with Deutsche Bahn and SNCF snapping at its heals on other parts of the network, our airspace might be controlled, in effect, by the German Government.
There are several very serious reasons why the Government would be wrong to withdraw completely from NATS. The current shared-ownership model between Government and airlines works well. The airline group has opposed an outright sale of the Government’s stake and raised the prospect of the industry walking away. The airlines are best placed to ensure the success that NATS has become, not least because of their healthy self-interest in safety and industrial relations. There are concerns about the impact of a foreign power taking a stake in NATS on the integration of civilian and military operations, which would put at risk the operational benefits of that integrated approach. There are also questions about the Government’s ability to play a leading role in air traffic policy at EU level if they become the only Government to have given up their stake in their air traffic service.
Justine Greening
It is probably wise for me to remind the hon. Lady that the Labour Government part-privatised NATS in the first place.
Maria Eagle
I am well aware that the Labour Government sold a stake in NATS. I am talking about the Secretary of State’s predecessor’s proposal to sell all of it. It is a question of the Government retaining a stake. If she is willing to confirm that the Government will retain a stake, I will be happy to give way to her. She shakes her head.
Maria Eagle
If the hon. Gentleman would wait just a moment, he might hear my suggestion.
Two weeks ago, the Prime Minister was apparently persuaded of the case for a new airport in the Thames estuary, a position that lasted a full 24 hours before the Under-Secretary of State for Transport, the hon. Member for Lewes (Norman Baker) slapped him down. Then the papers were briefed that new runways at Gatwick or Stansted were back on the agenda, despite the coalition agreement seemingly ruling that out. British business cannot afford this chaos and confusion continuing until or even beyond the next election. That is why I have made a clear offer to the Secretary of State for us to work together and put aside our differences for the good of the country to see whether we can agree a joint position on how we can meet the capacity issues in light of the decision on Heathrow. We have been disappointed that, three months on, the Government have not responded to that offer.
I was, however, encouraged by the constructive response from the Conservative party chair, Baroness Warsi, on last week’s BBC “Question Time”, in response to my hon. Friend the Member for Liverpool, West Derby (Stephen Twigg). She said:
“Some serious discussions—cross-party discussions—have to take place, because I don’t think anyone in this country wants us to be a republic which is left behind and really nobody wants to trade with.”
Leaving aside why the chair of the Conservative party believes that we are a republic, she is right to agree with us that we need a cross-party approach, and about the consequences of not agreeing a way forward. If the Transport Secretary would like to confirm that she does accept our offer and is willing to begin talks on how we can move forward on this issue together, then I am happy to give way.
Justine Greening
Part of the challenge is that the hon. Lady’s party has so many different policies on so many different days, it is difficult to know whom we would be talking with.
Maria Eagle
Coming from a party that last week had a different policy every day, none of which was in accordance with the majority party’s manifesto or the coalition agreement, it is a bit of a cheek for the Secretary of State to put that point to us.
A successful, thriving aviation sector is crucial for our economic competitiveness. It is vital that industry can plan for the future with certainty, not least to deliver the investment needed to provide the additional capacity required if we are not to fall further behind our EU competitors. I welcome the Government’s decision to bring forward this Bill and take forward the reforms that we began—
Justine Greening
I can report to the House that the Minister of State is watching the BBC Parliament channel in hospital at this very moment, so I am sure that she is following matters from afar.
Jim Fitzpatrick
I am sure that the House is grateful for that update and good news from the Secretary of State.
As I was about to say, we have a good idea about those aspects of the Bill that we will want to look at in particular, given all the background information, briefings and papers with which we have been supplied.
There have obviously been numerous briefings from industry stakeholders, community groups and others, mostly welcoming the Bill in general but asking for specific issues to be raised, and we will do our best to examine them; some we will be able to support, but all we will wish to look at more closely.
My hon. Friend spelt out several issues in some detail. There is a broad welcome for the general reform of the CAA and its role, but questions will need to be addressed about security, environmental duty, passenger welfare and protection, NATS and the role of the National Audit Office. As she said, we have interests in all those areas. She outlined our concern about security and the need for assurances that the proposed new arrangements will be able to respond quickly to events, and on the quality and experience of the staff who will have to be either transferred or recruited. There are also the questions of costs and ultimate decision making.
On the environment, there is a clear change of policy from that of the previous Government. The Transport Committee explored the issue with the Minister of State, and we will wish to return to it because, notwithstanding the fact that many airports are good neighbours to nearby residents, we want best practice to be adopted at all airports. It appears to us that a duty would have been the best way forward.
The passenger as customer needs to be assured that their position is protected at the airport and against companies failing, so we, like many hon. Members, welcome the ATOL changes. As my hon. Friend graphically recalled, however, her experience in the snow last year with the former Secretary of State was not a happy one for her, for him or, most importantly, for the passengers who were stranded, so we want safeguards against such situations. Passengers deserve the best protection against failure, but we recognise that airports are at the mercy of other forces outside their control.
The question about the role of airlines and secondary duties, which the Transport Committee raised, seems to be addressed in the Bill but warrants consideration, as do the various competition structures and appeal mechanisms outlined in the Bill and its schedules.
My hon. Friend raised several other issues, which the Bill Committee will I am sure be keen to discuss with Ministers, including how the aviation consumer advocacy panel will work, the lack of detail on the requirements to publish passenger welfare plans, the performance of the UK Border Agency and baggage handling, to mention just a few.
The Secretary of State opened the debate and clearly outlined the measures in the Bill: the greater accountability in the CAA reforms, the transfer of security and the extension of ATOL. I have mentioned the points that my hon. Friend the Member for Garston and Halewood made in reply. She welcomed the Bill but expressed the hope that we would improve it in Committee. She commended the Transport Committee, but expressed concern about the time it had been given to do its work. As I have mentioned, she covered comprehensively our concerns, especially on the security provisions.
The hon. Member for Crawley (Henry Smith), whose constituency covers Gatwick, is knowledgeable on aviation matters. He raised several relevant questions, including over the possible break-up of airports and the role of the CAA.
My hon. Friend the Member for Liverpool, Riverside, the Chair of the Transport Committee, made a useful and insightful contribution, in which she referred to a number of concerns that the Select Committee had registered. As I and other hon. Members have said, we will consider those concerns in the Public Bill Committee.
The hon. Member for Finchley and Golders Green (Mike Freer), who apologised that he would not be here for the winding-up speeches, spoke up for business travellers. He and my hon. Friend the Member for Garston and Halewood raised important questions about the UK Border Agency. He also spoke about regulation and security.
My former ministerial colleague at the Department for Transport, my hon. Friend the Member for Glasgow South (Mr Harris), made the case for ministerial cars strongly. He expanded on the need for a vibrant aviation industry. He argued that aviation need not be and is not the enemy of the environment. He also made a powerful case about the capacity constraints at Heathrow.
The hon. Member for Spelthorne (Kwasi Kwarteng), who I do not think is in his place, confused the Chamber about his position on the third runway. He seemed to make points both for and against it. I wish him well in maintaining the ability to articulate opposite positions. He is in good company in this place. Perhaps he could send me a copy of his press release on his speech, as I am sure that it will be worth reading. He also made good points about the industry and the Bill.
My hon. Friend the Member for Sedgefield (Phil Wilson) and other hon. Members spoke about regional airports and asked about their role and capacity. He spoke specifically about the future of Durham Tees Valley airport and the impact of the value of Heathrow’s slots on UK aviation. He made a strong case for the continuance of his local airport, as did others. He has been lobbying on that issue for a considerable time.
The hon. Member for Cambridge (Dr Huppert) raised a number of issues that he wanted to be raised in Committee. I am sure that they will be. He apologised to the House and hoped that we would not be disappointed at his brevity. I assure him that we would never be disappointed at his brevity. I cannot imagine how he arrived at that conclusion.
My hon. Friend the Member for Luton South (Gavin Shuker) is another member of the Transport Committee and also has an airport close to his constituency. He drew on both aspects to raise some key points, including capacity.
The hon. Member for Congleton (Fiona Bruce) raised a number of issues about the extension of the ATOL scheme and its weaknesses at present.
My hon. Friend the Member for Bolton West (Julie Hilling) raised questions about timing, the level of scrutiny, the absence of an environmental duty in the Bill and security.
The hon. Member for Tamworth (Christopher Pincher) did not seem to accept that the Bill has arrived earlier than expected. Perhaps his ministerial colleagues could clarify that for him and reassure him, as did my hon. Friend the Member for Luton South. The hon. Gentleman raised European comparisons and the critical role that aviation plays in the economy.
My hon. Friend the Member for Edinburgh North and Leith (Mark Lazarowicz) raised the need for environmental progress. He spoke about the environmental progress that has been made and about the absence of such a duty in the Bill. He raised the BMI takeover, as did a number of other colleagues.
The hon. Member for Milton Keynes South (Iain Stewart), another member of the Transport Committee, gave us the benefit of his examination of the key issues. He confirmed that Milton Keynes neither has nor needs its own airport.
My hon. Friend the Member for Feltham and Heston (Seema Malhotra) made her maiden speech. It was warmly received on both sides of the House, as maiden speeches generally are. Her contribution demonstrated a confidence and self-assurance that I am sure will serve her constituents well in the years ahead. Her description of her constituency and of the significance of Heathrow underpinned the relevance of her contributing to this debate. I hope that her mention of various local media outlets will ensure that her speech is covered well. I would be very surprised if it was not. She undoubtedly has the prospect of a long and distinguished time in this place. I look forward to watching her progress in the years ahead.
The hon. Member for Folkestone and Hythe (Damian Collins) was generous in his praise of my hon. Friend’s maiden speech and made a number of points, particularly about how to reduce the environmental impact of stacking by increasing capacity rather than constraining it. I strongly recommend that he talks to his party’s Front Benchers to suggest that they take up the offer of cross-party talks made by my hon. Friend the Member for Garston and Halewood. His contribution was very thoughtful and covered the role of his local airports, and I agreed with much of what he said.
In contrast, I disagreed with many of the points made by my hon. Friend the Member for Luton North (Kelvin Hopkins), who is not in his place. He spoke briefly about security and his opposition to increased capacity, and argued for more regional airport usage. His local airport is already very successful, and he argued that it could do more.
I have to report that, as the hon. Member for Amber Valley (Nigel Mills) rose, the batteries in my hearing aids ran out, and sadly the spare batteries were also flat. Some would say that that was good timing, but that would be very cruel. He is very softly spoken even with the amplification at the back of the Benches, but he spoke of the need, or rather lack of it, for regulated competition and of the five airports within 50 or 60 miles of his constituency. He raised questions about the ATOL provisions which I am sure will be asked in Committee, whether he is with us or not.
The hon. Member for Stockton South (James Wharton) mentioned Durham Tees Valley airport and powerfully supported my hon. Friend the Member for Sedgefield in the cross-party campaign for it to maintain its position. He was generous to my hon. Friend the Member for Feltham and Heston; in fact, I believe he was the first Conservative Back Bencher to own up to having been a recent visitor to Feltham and Heston. A number of colleagues repeated that afterwards.
The hon. Member for Thurrock (Jackie Doyle-Price) argued for less regulation and more market influence, and consequently a better deal for the passenger, but she also called for clarity in decision making and for a more mature debate—something that Labour has been offering and would very much like to take place.
The hon. Member for Witham (Priti Patel), another visitor to and admirer of Feltham and Heston and its new MP, accepted that she was making a number of points that had already been raised, but wanted to cover them again. She also raised the important point of investment in aviation across the globe and our falling behind our international competitors in developing our infrastructure.
The hon. Member for Daventry (Chris Heaton-Harris) explained how important aviation was to his constituency in particular, and agreed that the regulations covering the industry needed updating. He made a strong pitch for a British Airways business lounge pass, and I sure The Daily Telegraph will be very keen to report his progress. He might want to keep us all posted on how he gets on with that one.
The hon. Member for Rochester and Strood (Mark Reckless), who was the final Back-Bench speaker, raised the question of the fitness of the regulations for the 21st century.
As many Members have mentioned, the aerospace and aviation sectors are vital elements of the UK economy. Collectively, the industry is a major earner, manufacturer and exporter. Aviation’s role in connecting us with the rest of the world is key to growth, which has sadly been lacking in the Government’s economic performance since they came into office.
Aviation has made huge strides in addressing its environmental sustainability. At a recent aerospace reception here in the House, it was stated that the new A380 was 25% cleaner and quieter than its predecessors. In fact, it was said to be more fuel-efficient than a Toyota Prius. If someone drove it down the M4, they would not have to pay the London congestion charge.
Aviation is worth £11 billion to UK gross domestic product and employs 200,000 people directly and 600,000 indirectly. It is a critical industry, yet Government policy is in disarray. My hon. Friend the Member for Garston and Halewood offered cross-party talks to address the critical need for a national plan, and it is a very sad comment on the coalition that the Government did not respond positively. The offer still stands.
The CBI, London First, the British Chambers of Commerce, the TUC and industry stakeholders are seeking a plan—a strategy to map out how aviation will develop and contribute to our economic recovery. They will clearly have to wait for that, for as my hon. Friend pointed out, “better not bigger” is a slogan, not a policy. At least we have the Bill.
Ministerial Cars
Justine Greening Excerpts(12 years, 10 months ago)
Written StatementsRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Secretary of State for Transport (Justine Greening)
I am publishing today details of the cost to Departments of Government cars provided to Ministers by the Government Car and Despatch Agency (GCDA) during the year 1 April 2010 to 31 March 2011.
Spend for the period 1 April 2010 to 31 March 2011 was £3.8 million. This includes £0.7 million of spend during the previous Administration. In 2009-10 the spend was £6.7 million. This represents a 44% reduction in the amount Departments spent on the ministerial car service compared to the previous financial year.
Costs from 1 April to 12 May 2010 relate to the previous Administration.
From 12 May 2010, the costs incurred by non-Cabinet Ministers, while new arrangements for a ministerial car pool were introduced, include unavoidable costs associated with contractual termination notice periods. To reduce the cost of the Government car service to taxpayers, the ministerial car pool was introduced in September 2010 and, from that date, replaced the allocated service for non-Cabinet Ministers in line with the ministerial code published in May 2010.
The second table highlights the reduction in the number of Ministers who have access to a GCDA allocated car and driver. The number has reduced from 78 to 13.
Department | 1 April 2009- 31 March 2010 Total: | 1 April 2010- 12 May 2010 Total: | 13 May 2010- 31 March 2011 Total: |
|---|---|---|---|
Cabinet Office | £362,790.25 | £23,798.89 | £138,536.33 |
Department for Business, Innovation and Skills | £694,236.23 | £63,433.26 | £240,771.45 |
Department for Education | £489,193.30 | £54,254.64 | £213,629.44 |
Department for Communities and Local Government | £488,276.10 | £52,639.04 | £268,952.57 |
Department for Culture, Media and Sport | £305,397.32 | £25,631.37 | £65,108.55 |
Department for Energy and Climate Change | £303,129.83 | £34,967.45 | £131,272.97 |
Department for Environment, Food and Rural Affairs | £275,989.34 | £18,188.74 | £76,846.27 |
Department for International Development | £256,656.35 | £33,212.22 | £174,565.37 |
Department for Transport | £282,979.08 | £25,025.57 | £137,948.56 |
Department for Work and Pensions | £506,726.45 | £54,728.65 | £205,961.00 |
Department of Health | £475,490.38 | £52,962.64 | £205,052.81 |
Foreign and Commonwealth Office | £368,534.31 | £38,162.32 | £145,430.57 |
HM Treasury | £462,989.33 | £50,812.21 | £223,472.38 |
Home Office | £514,593.50 | £74,002.64 | £257,297.36 |
Law Officers’ Department | £188,130.75 | £19,993.43 | £107,078.42 |
Ministry of Defence | £106,342.80 | £15,846.51 | £23,572.12 |
Ministry of Justice | £320,429.90 | £35,079.33 | £229,214.80 |
Northern Ireland Office | £77,850.84 | £8,611.98 | £58,789.66 |
Scotland Office | £107,812.75 | £8,638.61 | £49,807.46 |
Wales Office | £150,504.20 | £18,260.88 | £113,691.38 |
£6,738,053.01 | £708,250.38 | £3,066,999.47 |
Department | Number of allocations at 31-03-10: | Number of allocations at 31-03-11: |
|---|---|---|
Cabinet Office | 4 | 0 |
Department for Business, Innovation and Skills | 7 | 1 |
Department for Education | 6 | 1 |
Department for Communities and Local Government | 6 | 1 |
Department for Culture, Media and Sport | 3 | 0 |
Department for Energy and Climate Change | 4 | 0 |
Department for Environment, Food and Rural Affairs | 2 | 1 |
Department for International Development | 3 | 1 |
Department for Transport | 3 | 1 |
Department for Work and Pensions | 6 | 1 |
Department of Health | 6 | 0 |
Foreign and Commonwealth Office | 4 | 0 |
HM Treasury | 6 | 1 |
Home Office | 6 | 1 |
Law Officers’ Department | 2 | 1 |
Ministry of Defence | 1 | 0 |
Ministry of Justice | 4 | 1 |
Northern Ireland Office | 2 | 1 |
Scotland Office | 1 | 0 |
Wales Office | 2 | 1 |
78 | 13 |
Oral Answers to Questions
Justine Greening Excerpts(12 years, 10 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Tom Greatrex (Rutherglen and Hamilton West) (Lab/Co-op)
3. Whether she has made an assessment of the benefits of extending High Speed 2 to Scotland.
The Secretary of State for Transport (Justine Greening)
High Speed 2 would serve Scotland from phase 1, through current classic-compatible high-speed trains running on the existing network, with half an hour being taken off journey times to Scotland. Although the Department has made no specific detailed assessment of the benefits of extending high-speed lines to Scotland, I am committed to delivering a truly national high-speed rail network. Of course, the Under-Secretary of State for Transport, my hon. Friend the Member for Hemel Hempstead (Mike Penning), was up there yesterday having those very discussions.
Tom Greatrex
I thank the Secretary of State for her response and trust that her ministerial colleague enjoyed his time in Scotland yesterday and will be back there very soon.
I am sure that the Secretary of State is aware of the business case made by CBI Scotland and others about the benefits, including those for business across the UK, of HS2 eventually coming all the way to Scotland. Is she also aware of the concern that has been expressed in the past couple of days that the constitutional uncertainty in Scotland may make that less likely? Does she therefore agree that it is important that that issue is dealt with so that HS2 and all the economic benefits can come to Scotland, and are then followed through?
Justine Greening
The hon. Gentleman makes an excellent point and I completely agree with it. Like many Members in this House, I want to see a United Kingdom and one of the ways we can unite our kingdom is through high-speed rail.
Paul Maynard (Blackpool North and Cleveleys) (Con)
Is the shadow Minister aware that on this issue we need to consider not only what the British Government can do, but what the Scottish Government can do? Is she prepared to consider allowing the Scottish Government to ensure that they can start to build the high-speed line themselves, using their own money and at no cost to English taxpayers?
Mr Speaker
I am sure that the hon. Gentleman did not intend to relegate or demote the Secretary of State.
Justine Greening
Thank you, Mr Speaker.
I do not need to allow the Scottish Government to do that; they already have the ability to get on with starting the preparatory work for a Scottish high-speed line if they want to do so.
Mrs Louise Ellman (Liverpool, Riverside) (Lab/Co-op)
The real benefits of high-speed rail will come from taking the line beyond Birmingham. What commitment can the Secretary of State give to extending the line to Leeds, to Manchester and then, possibly, to Scotland?
Justine Greening
I hope that I can give the hon. Lady a firm commitment, and it is one that she will doubtless have seen in the Command Paper itself.
Mr Gary Streeter (South West Devon) (Con)
May I encourage the Secretary of State not to consider extending HS2 to Scotland and instead to place that investment in improving rail capacity to Plymouth and the far south-west? We are now without an airport and, as the motorway stops at Exeter, we desperately need to increase our rail connectivity to the rest of the country.
Justine Greening
My hon. Friend raises the very important question of value for money. The Scottish Government have already said that they are willing to fund a high-speed rail link within Scotland, and of course I will make sure that I strike the right balance between developing any high-speed network further and maintaining our investment in the existing railway network.
John Robertson (Glasgow North West) (Lab)
5. What discussions she has had with the Scottish Government on the renewal of rail franchises for services from and to Scotland.
Graeme Morrice (Livingston) (Lab)
6. What discussions she has had on the route for High Speed 2 and its possible extension to Edinburgh and Glasgow.
The Secretary of State for Transport (Justine Greening)
The former Secretary of State held discussions with Scottish Ministers regarding a potential extension of High Speed 2 to Scotland last year. As I said, the Under-Secretary of State for Transport, my hon. Friend the Member for Hemel Hempstead (Mike Penning), was up there yesterday and we expect to have further discussions with the Scottish Government to identify and evaluate options for developing high-speed rail further in the future.
Graeme Morrice
I hope that the Under-Secretary, who was in Scotland yesterday discussing rail issues, took the train to Scotland. The Scottish Council for Development and Industry’s recent survey of leading Scottish businesses demonstrated overwhelming support for extending high-speed rail to Scotland because of the significant economic benefits that it will bring. Will the Secretary of State now give a clear commitment that Scotland will be included in the development of the project from the earliest stage possible?
Iain Stewart (Milton Keynes South) (Con)
Does my right hon. Friend agree that taking the route of High Speed 2 through Heathrow will be important in achieving a modal shift for domestic passengers travelling from Glasgow and Edinburgh to London?
Justine Greening
My hon. Friend is right and that is why the second phase of High Speed 2 will see a spur to Heathrow. It is also wise to point out that the first phase will see Birmingham airport effectively connected to High Speed 2, too.
Stephen Timms (East Ham) (Lab)
I hope that we will see direct trains from Scotland to Paris and Brussels. Will the Secretary of State confirm that the current proposal is for only a single-track interconnection between High Speed 1 and High Speed 2 and is she open to imaginative ideas to make better use of existing capacity to allow a proper two-track link between the two future high-speed links?
Justine Greening
The right hon. Gentleman is right to point out that we have plans to connect those two high-speed tracks in part of the first phase and his question demonstrates the opportunities for growing that capacity in future years. I think it shows why high-speed rail is so vital to the future of not just the capacity of our rail network but our economy.
Nigel Mills (Amber Valley) (Con)
There is great interest in the east midlands about where the route of HS2 and the east midlands station will be located. Will she bring forward the timing of the first announcement of the plans so that we can all understand the potential benefits and downsides of the route?
Justine Greening
The timelines are that we will get some initial advice on potential routes later this year, which will enable us to start having those discussions with local stakeholders and that, by 2014, we will have a preferred route on which we can formally consult. I hope that over the course of this year the sorts of discussions my hon. Friend mentions will be able to take place.
Ian Austin (Dudley North) (Lab)
Have the discussions about extending the route to Scotland included considering bringing the fast trains through Birmingham and into the black country, an area that has the largest concentration of manufacturing companies anywhere in Europe? That measure would enable the Government to deliver on their commitment to rebalancing the economy in favour of manufacturing and would cost much less than the alterations she has made to the route to allay the concerns about farms and fields in the home counties.
Justine Greening
The decision I announced earlier this week was my final decision on the route of phase 1, but I was in Birmingham yesterday and one thing that came across very clearly to me was the broader benefits of High Speed 2 for the whole region, including the black country. Of course, by providing more capacity, it will free up capacity on the existing rail network, which will particularly help that part of the country.
Jo Swinson (East Dunbartonshire) (LD)
7. What plans she has to encourage the use of 20 mph speed limits.
Mrs Helen Grant (Maidstone and The Weald) (Con)
14. What assessment she has made of whether stockpiles of salt for winter resilience have increased since 2009.
The Secretary of State for Transport (Justine Greening)
Total salt stock holdings in Great Britain at the start of December last year were just over 2.7 million tonnes, including strategic stockpiles of 539,000 tonnes. This is a significant improvement on the stock levels held in 2009 and is due to the actions that this Government have taken on winter resilience.
Mr Walker
I am grateful to the Secretary of State for that very reassuring answer. Will she join me in commending local authorities such as Worcestershire that have not only increased their stocks but have also adopted new technologies such as the use of brine and GPS monitoring to make sure their reserves go much further? Is it not right that in these difficult times in preparing for cold weather councils should be innovative and creative in doing more with less?
Justine Greening
I absolutely agree with my hon. Friend and I very much welcome the preparations that Worcestershire county council and other local highway authorities have taken to be prepared for severe winter weather. I also commend Worcestershire for taking on board the guidance that was published through the UK Roads Liaison Group in December 2010, which related to the sorts of things he has talked about.
Justine Greening
In addition to the measures I just outlined in relation to increasing not only the level of salt we have but our ability to get the most effective winter resilience out of that salt stock, we are investing to make sure that our rail companies are far better able to cope with bad weather. That includes making sure that we have more de-icing trains as well as better technology for existing trains to de-ice as they run. That will be particularly beneficial to my hon. Friend’s constituents.
Karen Lumley (Redditch) (Con)
9. What discussions she has had with ministerial colleagues on metal theft from railways and motorways.
Gavin Barwell (Croydon Central) (Con)
T1. If she will make a statement on her departmental responsibilities.
The Secretary of State for Transport (Justine Greening)
Earlier this week I announced to Parliament my decision on High Speed 2, giving the go-ahead to a national high-speed network that will dramatically increase capacity and reduce journey times between our cities. Over Christmas, negotiations were concluded on a £188 million deal between Southern and Bombardier which will see 130 new carriages ordered from the Derby-based manufacturer. The Minister with responsibility for roads announced a £2.7 million investment in 3D laser-scanning technology. Before Christmas, I announced funding approval for a further 21 local authority major schemes, on top of the 20 schemes announced by the Chancellor in the autumn statement. The total Department for Transport contribution for all 41 schemes will be up to £972 million.
Gavin Barwell
My right hon. Friend referred to the procurement by Southern of more than 130 new carriages. Is that not fantastic news for hard-pressed commuters from my constituency and for Bombardier, its employees and its supply chain?
Justine Greening
I absolutely agree. This is a win for everybody concerned. Southern will deploy the new vehicles on its most overcrowded services, which will be of huge benefit and relief to passengers.
John Woodcock (Barrow and Furness) (Lab/Co-op)
Today’s excellent report from the Transport Committee highlights the scandal of dodgy whiplash claims that are hiking up insurance premiums for honest motorists. Why, just a couple of months ago, did the right hon. Lady’s colleagues reject Labour’s amendments to the Legal Aid, Sentencing and Punishment of Offenders Bill which would have curbed whiplash claims? In light of today’s report will she reconsider that opposition?
Justine Greening
The hon. Gentleman would be better directing his question to the Ministry of Justice, which leads for the Government in this area. I very much welcome the Select Committee’s report and the work of the right hon. Member for Blackburn (Mr Straw) in raising the issue. The Government are already taking action to ban such things as referral fees. I assure the hon. Gentleman that I will work very closely with the Ministry of Justice to see what action we can take on this issue.
Nicky Morgan (Loughborough) (Con)
T4. Last month the Department announced funding for a number of road projects, including the Loughborough inner relief road. I thank the Secretary of State for that decision, for which we have been waiting 40 years. Does she agree that road infrastructure is critical for the regeneration of towns and cities such as Loughborough?
Justine Greening
I absolutely agree. The investment that we have been able to put into Loughborough will make a critical difference to Loughborough, not least in helping to regenerate the town centre, improving public transport access and reliability and, importantly, improving accessibility for pedestrians, cyclists and people with disabilities.
Jim McGovern (Dundee West) (Lab)
T2. I am sure that most hon. Members would agree that for many visitors to any town or city in the UK their first impression, and perhaps their last, will be of the train station. Will the Minister use her good offices to ask ScotRail, Network Rail and Dundee city council to look at improving Dundee’s train station?
David Morris (Morecambe and Lunesdale) (Con)
T5. I congratulate my right hon. Friend the Secretary of State on the announcements on HS2 and the longevity of the railway system in this country. May I press her to find out what steps are being taken to open up access on the west coast main line link so that passengers from Carnforth can get to London?
Justine Greening
As my hon. Friend may be aware, high-speed rail will enable capacity on the west coast main line to double, and Network Rail is now able to review the ability to use that released capacity to provide better services for constituencies across the country, hopefully including his own.
Graeme Morrice (Livingston) (Lab)
T3. The Secretary of State will be aware that many of the rail enhancement projects in Scotland, including the Edinburgh Glasgow improvement programme and Borders Rail, are being funded by borrowing against the value of Network Rail’s regulatory asset base, which is of course a Great Britain-wide asset. Does she agree that those projects and many in the future would not happen in a separate Scotland, given that there would be no GB assets to borrow against?
Justine Greening
That is one of many questions of this nature that a push towards an independent Scotland would raise. The hon. Gentleman is absolutely right to raise his concerns about the destabilising impact that independence would have, where none of the benefits hoped for by those who want independence would be realised, but many of the downsides would absolutely come to fruition.
Fiona Bruce (Congleton) (Con)
T8. Road crashes are the biggest single killer of young people aged between 17 and 25 in this country today. Will the Minister join me in congratulating Cheshire safer roads partnership’s “Think, Drive, Survive” scheme, which brings officers into schools to teach young drivers about better road safety? What more can the Government do in this respect?
Derek Twigg (Halton) (Lab)
T7. All parties support the proposed new Mersey Gateway crossing, but there is concern that local people will have to pay a toll to cross the bridges. I believe that they should continue to pay nothing. My big concern is that the deal that the Government have offered Halton borough council means that they will take 70% of any excess revenue from procurement savings and 85% of any excess toll revenue, which will leave the council little room for manoeuvre to discount local tolls. Will the Secretary of State please look at this again?
Justine Greening
I think that the deal we struck with the hon. Gentleman’s local council is the right one, and one that it signed up to. It enables it to get on with the new crossing, which will provide welcome extra capacity for many people in the area.
Elizabeth Truss (South West Norfolk) (Con)
The A47 is a vital strategic route from east to west, but in many places it is still single carriageway. Does the Minister agree that it needs to be upgraded to a national strategic route, as it was before the previous Government downgraded it?
Cathy Jamieson (Kilmarnock and Loudoun) (Lab/Co-op)
T9. I continue to receive representations from constituents regarding the Government’s plans for MOT tests. What assurances can I give them that concerns about safety have been taken into account, and what plans has the Secretary of State to update us?
Justine Greening
I will be announcing the next steps on those plans very shortly and can absolutely assure the hon. Lady that, as with any decisions I take, safety is of paramount consideration.
Mr Philip Hollobone (Kettering) (Con)
May I thank the roads Minister for his interest in and commitment to the £110 million expansion of the A14 around Kettering, and, given its proximity to the town of Kettering itself, urge him to include as many noise reduction measures as he can when the scheme is constructed?
Amber Rudd (Hastings and Rye) (Con)
I know that the Minister is aware of the importance to economic growth of the Hastings to Bexhill link road, which he is now considering. Is he also aware of the enormous lengths that its promoters have gone to in order to mitigate environmental concerns, including the proposed building of dedicated tunnels for dormice that might have to cross the road?
Justine Greening
I was not aware of the proposals relating to dormice, although I very much welcome them. I have had many representations from people in that region about the importance of the scheme. We are considering them very carefully now, and I hope that we can announce our final decision on the scheme shortly.
Margaret Beckett (Derby South) (Lab)
Is the Secretary of State aware that, although there is a welcome on both sides of the House and in the city of Derby for her decision on the Southern contract, and indeed hope for her decision on eVoyager, the real touchstone of the Government’s approach to rail procurement will be the handling of Crossrail and, in particular, whether its financing is handled as was the Thameslink project? I know she has that in mind, and I hope that she can give us a favourable answer on it today.
Justine Greening
I am very pleased that the right hon. Lady has welcomed the deal that was struck between Southern and Bombardier. I had her in my thoughts on the day of the announcement, because I know how much difference it makes to the city that she represents. I assure her that I take incredibly seriously the negotiating process, ensuring that it is fair for all people involved including bidders such as Bombardier, and I will now work very closely over the next months and years with all people who want to bid for the important Crossrail procurement and ensure that that is fair. We have seen that when Bombardier bids for contracts, as it does, it can be successful.
Alun Cairns (Vale of Glamorgan) (Con)
Almost 50 years have passed since the 70 mph maximum speed limit was introduced, and in that time there have been significant advances in motoring technology. When does the Minister expect to announce the outcome of her review of the matter?
Justine Greening
I shall announce it very shortly, and we are absolutely committed to striking the right balance between looking at the important issues that my hon. Friend has just raised and doing what we can to maintain and, indeed, improve motorway safety.
Shabana Mahmood (Birmingham, Ladywood) (Lab)
Will the Secretary of State reject the previous Transport Secretary’s comments that high-speed rail would be affordable only for business passengers, and will she reassure passengers that the new high-speed line will be both affordable and accessible?
Justine Greening
I want to be absolutely clear: my predecessor was very clear that the new high-speed rail line needed to be a railway that was beneficial to all people, including of course business people who want to use it. The business case works on an assumption of standard rail fares, as we have on the current network, and I am absolutely clear in my mind that the way in which we are going to make high-speed rail successful is by having as many people use it as possible—and that means having value-for-money fares.
Rail Fares
Justine Greening Excerpts(12 years, 10 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Maria Eagle
The reality is that when the previous Government saw what train operating companies were doing with the power that flex gave them to game the system and clobber some commuters far more than others, we banned it. This Government have reintroduced it. Times are still tough and the Government should not have caved in to pressure from train companies, but they seem to be unwilling, or perhaps incapable, of standing up to vested interests on behalf of commuters, who are now paying the price. I have made it clear that we would have strictly enforced the 1% above inflation cap and not allowed the increases of up to 11% that commuters have faced at ticket offices since the new year.
The Secretary of State for Transport (Justine Greening)
Perhaps the hon. Lady would like to finish the other part of her phrase, which is that she would not have allowed rises of above RPI plus 1%, just as she would not have allowed below RPI plus 1% flexibility. Will she confirm that that is the position and that many commuters would face fare increases under her proposals?
Maria Eagle
What we are not seeing from train operating companies or the Government are proposals to reduce fares. The technical position is of course that if an average cap is applied to each fare, the fare rise will apply to each fare. The Secretary of State is right about that, technically speaking.
Maria Eagle
No.
Next year’s fare increases are set to be even higher—not 1% but 3% above inflation, with the same again in 2014. Unless the Government are willing to stand up to the train companies, and unless they are willing to take on the vested interests and remove the right to add another increase of up to another 5% on top of this year’s so-called cap, commuters next year will face fare rises of up to 13%, with another 13% the year after. That is happening at a time when average incomes are plummeting. Over three years, some tickets will rise by almost one third as people’s real incomes fall by 7.5%, yet the Government seem completely out of touch with the impact of that on households.
Season tickets are heading rapidly towards £10,000 a year on some routes into London once underground travel is included; families are now paying more on commuting costs than on the mortgage or rent; and ticket price rises are outstripping wage increases several times over, if people are fortunate to see a wage increase at all. That is the cost-of-living-crisis facing households throughout the country. Rent levels are going up; energy and water bills are rising relentlessly; bank charges are extortionate, as the cost of living means overdraft limits are breached; and the cost of transport is rising.
Justine Greening
I am listening very carefully to the hon. Lady, who is raising what we all recognise as important issues, but I want to double check something, because earlier in her speech she talked about getting more money into Government coffers through the RPI plus 5% flexible policy. Does she recognise that the policy she is announcing today is a spending commitment? If so, how does she set it against what her shadow Chancellor said yesterday, when he stated:
“I can say to you unequivocally we can make no commitments to reverse any of the Government’s tax rises or spending cuts”?
Maria Eagle
I do not know the spending commitment to which the Secretary of State says I have referred, because there is no spending commitment, and it is complete nonsense for her to say that there is —[Interruption.] I understand her point, but if she wishes to try again I will give way.
Justine Greening
Clearly, the money for that policy has to come from somewhere, and it is from the taxpayer. The hon. Lady obviously accepts that point, so the policy is a spending commitment. Will she simply confirm the reality of that?
Maria Eagle
What I have said is that we would stop the operation of the flex system, as the Secretary of State’s Labour predecessor did. We said before the election that we would do so, but the Government have reversed that policy, and commuters are being clobbered as a result. That is quite clear.
The Secretary of State for Transport (Justine Greening)
I am delighted to be back at the Dispatch Box for the second day in a row. I am also delighted to be debating this important issue with the Opposition who have left the country with such debts, that the Government have little leeway to do what the hon. Member for Garston and Halewood (Maria Eagle) is proposing, which is to add more debt on to a debt crisis.
The Opposition talk about how they feel about train services and rail fares and I will respond to the particular points that the hon. Lady has made. However, many people who are listening will find it galling that the day after the Leader of the Opposition made his relaunch speech which talked about responsibility, his party is instantly engaging in an Opposition debate that shows no responsibility whatever and is making more unfunded commitments that would only add to the debt levels with which it has already burdened our country. The Labour party left this country with the highest structural budget deficit of any major economy in the world and with the highest deficit in our peacetime history. Those debt levels are costing us £120 million a day. We would much rather invest that money in our transport system and other public services. The debt levels that the Labour party left us are crippling the country and we have to tackle them first. As we regain control of our country’s finances, we are aware of how difficult the economic situation is for many people. That is why the Government have taken tough decisions to restore credibility to this country’s economic policy.
Mrs Anne Main (St Albans) (Con)
I am pleased that the Secretary of State is drawing attention to the history behind this matter. My constituents experience the highest rail fares in the country at nearly 30p a mile. Those fares did not get to that level overnight. In his speech on Monday, the Leader of the Opposition described Hertfordshire as one of the cheaper places to live. That shows that the Opposition are completely out of touch with my constituents.
Justine Greening
The Opposition are out of touch. The speech largely failed to talk about how we can tackle the underlying problem in the rail industry, which is the cost. The hon. Member for Garston and Halewood touched on that point and I will come to it later. The industry was passed over to this Government with a high cost. I want to tackle that cost, but the previous Government did nothing to tackle it in 13 years. One of the most important things that the Government and I have to do is to get to grips with the high cost of the railway industry. That must be part and parcel of the Government’s overall approach to getting a grip on our public finances.
At the heart of the Government’s clear determination to do that is giving ourselves the best possible chance of keeping interest rates as low as possible for as long as possible to help families and businesses with loans and mortgages. It is not just the taxpayer who is paying through the nose for debt. We must keep interest rates as low as possible for people across this country who rely on that for their household finances to make sense. Let us be clear: if we had taken the advice of the Opposition to spend more and borrow more, which is what they have been talking about in this debate, we would be talking not about the cost of rail and bus fares, but about an International Monetary Fund bail-out to keep our country afloat, and we would be living in a country facing bond yields and interest rates like those of European countries such as Greece. That is the situation that the Opposition want to swap for.
Kwasi Kwarteng (Spelthorne) (Con)
Does my right hon. Friend have any idea why the perennial problem of rail costs was not tackled in 13 years under Labour and why she and her Department have had to deal with it?
Justine Greening
My personal view is that there were two key reasons—a lack of ability to tackle the problem, because Labour simply did not understand how to do so, and a lack of willingness. Tackling the problems means that we need to have some difficult discussions about the work force, and as we saw in the vote that has just taken place in the House, the Labour party shows no willingness ever to stand up to its party pay leaders, the unions.
Maria Eagle
Given that the Secretary of State has said that she is interested in reducing the costs of the railway industry, does she accept that she needs to examine its structure? One of the big causes of excess cost in the industry is the fragmentation that was left to us after the botched privatisation that the previous Tory Government carried out.
Justine Greening
I think many people watching the debate will wonder why the hon. Lady’s party did nothing in 13 years. I will shortly publish a Command Paper setting out our approach to tackling a number of the broad challenges that exist.
Mr Tom Harris (Glasgow South) (Lab)
I am disappointed that the Secretary of State is being so churlish and saying that the last Government did nothing to reduce costs. Is she even aware that in the five-year control period ending in 2009, they forced Network Rail to improve its efficiency by 33%? Why has she not admitted that that was a major achievement, or that further efficiency savings were included in the next control period ending in 2014?
Justine Greening
I do not think there is any way in which the hon. Gentleman can dress up the outcome of the McNulty report, which set out very clearly just how expensive our railway industry is compared with those in mainland Europe.
I understand that rail fares are a large part of household expenditure for many people, particularly commuters, who often travel significant distances to go to work and earn a living. Of course, the taxpayer subsidises the rail industry alongside rail fares, and thanks to difficult decisions that the Government took in the emergency Budget and the spending review, the Chancellor was able to announce in the autumn statement that we would fund a reduction in the planned increases in fares so that regulated fares would increase by RPI plus 1%. That reduction is helping millions of people who use our trains.
Mr Edward Leigh (Gainsborough) (Con)
Will my right hon. Friend say something about rural fares? The anytime weekly return to London from Market Rasen, which is not in the frozen north, is £150, and the average weekly wage in Market Rasen is £561. That means that people are paying 26% of their weekly salary just to get to London and back. That is not acceptable, and something must be done. We must have less emphasis on the high-speed rail link and all those wonderful projects and more emphasis on helping ordinary people in rural areas.
Justine Greening
My hon. Friend is right to set out the very difficult balance that we have to strike. On one hand we have to ensure that we keep rail fares affordable, and I am determined to do what I can to do that in spite of the fiscal straitjacket within which the Government are having to operate. On the other hand, we have to ensure that we can balance investment in the short term. I am sure that many Members were delighted to see Bombardier agree the contract with Southern for more carriages, and we are putting unprecedented investment into the existing railway lines. We have to strike a balance between working out who pays for the hard work that is going on today and ensuring that we have a railway network that is fit for service in the future.
I know that some passengers on particular routes have faced higher increases than others, and I listened to what the hon. Member for Garston and Halewood said about the 5% flex in rail fares. I am bound to point out, however, that it was the last Labour Government who introduced that flex in 2004.
Maria Eagle
I accept that it was introduced by the Labour Government, but it was then stopped by the Labour Government and reintroduced by the current Government.
Justine Greening
I am pleased that the hon. Lady has made that intervention, because I have with me an exact extract from the franchise agreement that the last Labour Transport Secretary put in place. I shall quote from it, to remove any uncertainty, and then maybe the hon. Lady would like to intervene on me again. It states:
“With effect from 1 January 2010, Schedule 5 of the Franchise Agreement will be amended as set out in the Appendix to this notice.”
That is the change that she has talked about. However, it continues:
“On and from 1 January 2011, the amendment to the Franchise Agreement set out in this notice of amendment shall be reversed.”
Does she want to intervene to correct the record?
Maria Eagle
I am very happy to intervene. Of course I will not contradict what the legal agreement states, but the last Labour Transport Secretary made it perfectly clear to the Transport Select Committee in 2009, in oral and written evidence, that the policy was to continue. It had not been negotiated, but that is different from the policy having been changed. Negotiations go on all the time in government, as the Secretary of State will be finding out. I do not think that quotation makes the point that she thinks it does.
Justine Greening
I really suggest that the hon. Lady stops digging the last Labour Transport Secretary into a deeper hole than he is already in. The contract is absolutely clear-cut, stating categorically in black and white that the flexibility levels introduced by her party’s Government would be reintroduced the year after their abolition.
Mr Tom Harris
Irrespective of what the legal agreement was, does the Transport Secretary personally believe that it would have been a good idea to renegotiate a further period for which the flex would not have been in force?
Justine Greening
I do not, because I believe that the train operating companies need flexibility, so I support my predecessor’s decision. If I did agree with negotiating a further period, it would represent a spending commitment. I agree with the shadow Chancellor that now is not the time to make any further spending commitments, even if the hon. Member for Garston and Halewood does not. We can see the absolute disarray that the Labour party is now in.
I find it incredibly frustrating and galling, as I think many other people do, to hear on one day the leader of the Labour party—the party that left this country in a worse financial state than any other Government ever have—profess that we must be responsible, even though Labour was irresponsible and did not have the custodian values that it needed in looking after our public finances, then the day after, to hear Labour talk about more spending and more debt in the middle of a debt crisis. The very people who let this country down the most and left our public finances in their worst state ever are now the ones talking about responsibility. Most people outside will see that for exactly what it is—absolute political gibberish.
Justine Greening
No, I am going to make some more progress now.
I ask the hon. Member for Garston and Halewood, or perhaps the shadow Minister who winds up the debate, to come clean and talk about how their spending commitment would be funded. If the hon. Lady wants to go against what the shadow Chancellor is saying about there being no more spending, she must accept that her suggestion represents a spending commitment. It is time to talk about how she would fund it, otherwise she has to accept that it would lead to more debt at a time when we are right in the middle of a debt crisis. There is no point in the Leader of the Opposition promoting responsibility when his own party continues to show absolutely none.
The hon. Lady also has to admit that the flexibility that she wants to take away from train operating companies has meant some passengers benefiting from lower increases or decreases. For instance, passengers on the Birmingham to London route via High Wycombe have seen their annual season ticket price reduced by 7%, and the Gatwick to Bournemouth saver return has been reduced by 28%. She is proposing to raise the cost of those passengers’ travel. Presumably she is quite happy to confirm that—she can intervene if she wants.
The bottom line is that for all the bluster that we heard from the hon. Lady, she would abandon the long-term investment in capacity improvements that depends on continued funding from both the taxpayer and the fare payer. She talks about 11% fare increases, but the last Government also allowed such increases. It is worth reminding ourselves of their record on rail fares and value for money. The Labour-led Transport Committee in the last Parliament stated:
“Neither passengers nor tax payers are getting value for their money…The value for money of rail travel has deteriorated by most yardsticks over the past decade.”
I have listened carefully to the comments of the hon. Member for Garston and Halewood, and I hope that we both accept that the real driver of rising costs for fare payers and taxpayers is the inefficiency of the rail system that we inherited from the Opposition. She mentioned other European railways, and Sir Roy McNulty’s independent review of our railway network found that the system that we inherited from the previous Government is 40% less efficient than those of our best European comparators. Taxpayers and fare payers must shoulder that huge cost burden because of the previous Government’s failure to reform our railways.
Unless we are prepared to get to grips with the underlying causes of the inefficiencies, we will never make the progress that I am so passionate about achieving. That means getting different parts of the industry to work more effectively together, as we are doing through the rail delivery group, which has been set up, as Roy McNulty proposed. It means aligning incentives better and increasing transparency—I absolutely agree with that. However, it also means tackling some of the work-force issues, which, we must all accept, have driven up costs. When we reach those difficult discussions in the coming weeks, months and years to tackle rail industry costs that are too high, I hope that the Labour party will step up to the plate and join us in making the necessary decisions to bring rail costs down for the longer term and relieve the fare rise pressures that we have experienced year after year.
Kelvin Hopkins (Luton North) (Lab)
The Secretary of State rightly draws attention to the difference in cost between continental railways and ours. The only major difference between them and us is that theirs are publicly owned and integrated and ours are privately owned and fragmented.
Justine Greening
That is an over-simplification. However, the hon. Gentleman is right to point out that Sir Roy McNulty identified in his report a need for the different parts of the rail industry to work together much better. Network Rail is already doing that with many of the train operating companies. That was to be a key way of driving costs down—not through worsening services but by running the system better in the first place.
Stephen Hammond
If we are comparing privatised or denationalised and nationalised railways, perhaps the Secretary of State would like to reflect on the point of history that, in the last 15 years of British Rail, fares rose faster than in 15 years of denationalised railways.
Justine Greening
As ever, my hon. Friend, for whom I have huge respect and who is obviously an expert in the House on the subject, makes an incredibly powerful point. It is worth complementing that with the point that we also experienced unprecedented increases in passenger demand since privatisation.
Julie Hilling (Bolton West) (Lab)
When the Secretary of States talks about reducing costs in the industry and staff numbers, does she mean cutting the salaries of people who work in ticket offices on basic wages of £16,000 or £17,000, or of train dispatchers, who are on basic wages of £14,000—not big, but low salaries? Is she saying that those people should have their salaries reduced?
Justine Greening
I do not think that I have talked about reducing salaries. Many people might say that a train driver on a salary of £40,000 or more had a well-paid job compared with them.
Clearly, we need to address important issues that relate to the costs of the railway industry. That is why we will publish the rail Command Paper early this year to set out how to meet the challenge. That is the real prize. The long-term way of reducing pressure for relentless fare rises is by tackling the underlying driver: the industry’s cost base. As I said, that will also give the Opposition an opportunity to demonstrate whether they are serious about reducing costs to passengers or whether their policy review is limited to tinkering at the edges with uncosted commitments drawn up on the back of an envelope.
Mrs Main
I have written to the Secretary of State about Network Rail, which has fundamentally failed many of the train operators—67% of all delays and stoppages are to do with Network Rail. It is time to have a debate about it. Network Rail, which is with the Office of Rail Regulation now, has been deeply inefficient in the amount of money that it costs the taxpayer.
Justine Greening
That is what I mean when I talk about the need to align financial incentives better so that people are pulling in the right direction and so that, when performance is not good enough, it costs the people who cause the inefficiency in the first place.
I want to move on to the second aspect of the comments of the hon. Member for Garston and Halewood —bus fares. Although every sector and Department have had to play their part in deficit reduction, the Labour party still does not accept that, even after yesterday’s speech by the Leader of the Opposition. Nevertheless, we are determined that, even in the difficult economic conditions that we face, buses will continue to receive their fair share of funding. Yes, it is constrained by the terrible legacy that the Labour party left us, but we are determined to encourage more people on to buses and to make bus travel more attractive. That is why we set out in a spending review our commitment to continuing our financial subsidy of bus operators. The bus service operators grant remains untouched for this financial year, with savings to be introduced only from April, alongside others that we have had to make across Government as part of tackling the deficit that the Labour party left us.
Justine Greening
Many Londoners will not forget that the current Labour candidate for Mayor increased bus fares in 2004 by a huge amount. I simply do not accept that his proposals for London will mean anything other than catastrophically undermining the essential investment, on which so many Londoners count, in the transport system. It is financial jiggery-pokery, and it does not add up. I believe that Londoners will see right through it in May.
We must tackle the deficit, but we continue to ensure that funding goes into our bus services. Indeed, we spoke to the industry as part of the spending review about how we could get more out of the bus service operators grant. After difficult spending decisions, the industry said that it felt able to absorb the reduction without raising fares or cutting services. Nevertheless, we are protecting the concessionary bus travel scheme.
Lilian Greenwood (Nottingham South) (Lab)
I can assume only that the Secretary of State is out of date, because the Confederation of Passenger Transport UK told me that, although it initially felt that it could absorb the 20% cut in the bus service operators grant, the combination of that and the cuts to concessionary travel repayment and local transport was a perfect storm.
Justine Greening
The hon. Lady should apologise to that organisation more than anyone else because her Government left the country’s finances in a state that means that we have to make very difficult decisions. There is not a day when I do not come into the office wishing that the state of the public finances that the Labour party handed us was better. The reality that we must all, apparently apart from Labour Members, face is that we have got to tackle that problem. That means making some difficult decisions. The Labour party is in complete disarray.
Justine Greening
Until the Opposition speak with any sort of single voice, it is pointless taking further interventions. Most hon. Members would accept that I have taken an awful lot and it is time for constituency Members of Parliament to have their say on behalf of their communities.
We are committed to investing in bus travel. In the past two months, we have also announced nearly £100 million of additional investment in buses as part of the growth review.
We are committed to investing in the transport infrastructure—not only HS2, as we announced yesterday. We are putting unprecedented investment into rail infrastructure. Even in these tough times, the Government are taking action to help people with the rising cost of living at the same time as dealing with the massive budget deficit that the Labour Government left us. That is why we are helping keep interest rates low for families and businesses, freezing council tax for the second year running, cancelling this month’s fuel duty increase on top of last year’s fuel duty cut. It is why we are funding a reduction in the planned increase in regulated rail fares and continuing our financial subsidy of bus operators while implementing a massive programme of investment in our transport infrastructure, not just for passengers today and in the next 10 years, but for those in the decades to come. Our determination to reduce the cost of railways in the long term to fare payers and taxpayers means that we will introduce proposals for substantial reform in the rail Command Paper early this year.
That is the significant action that we are taking. The Labour party talks about responsibility at the top, but in reality that means difficult decisions. We are making them, and that stands in stark contrast to the Labour party’s tinkering, unfunded and, in so many cases, unworkable proposals.
Mr Tom Harris (Glasgow South) (Lab)
Since the Secretary of State spent some time talking not about rail fares but about the economic legacy of the last Labour Government, I wish to make one brief point first. As an Opposition Member, she was a member of the shadow Treasury team and, up until November 2007, the Conservative party’s policy was to support every penny of spending made by the Labour Government. If she is claiming that the deficit that the Government inherited was created in the last 18 months of the Labour Government, that is something that the House would like to debate. She cannot pour scorn on the spending of that Government when she sat on the Opposition Front Bench and supported every penny. That is double standards. The Secretary of State shakes her head, and I am more than happy to give way if she wants to explain why she did not tell the then shadow Chancellor that he should not support Labour’s spending plans.
Justine Greening
Everybody in Britain knows exactly which party got the country into the financial mess. It is precisely why Labour Members are on the Opposition Benches now: it was them.
Mr Harris
That says quite a lot about the Secretary of State’s reluctance to accept her own culpability for supporting the spending plans of the previous Labour Government.
I do not believe that the railway industry is broken, or a basket case. I was proud to serve as a railway Minister in the last Labour Government, and I understand the successes that have grown from 13 years of Labour governance of the railway industry. We have more people travelling on the railways than at any time in their history outside of wartime. We have more services every working day than ever before, and punctuality is at an all-time high. Those were achievements that this Government have managed to continue—and I hope that that continues—but fares are a fundamental weakness. They are the crucial interface between the travelling public and the railways and—irrespective of the public subsidy to the railways—if we do not make rail travel affordable for ordinary people, it will not be surprising if they feel that the railways are letting them down.
The previous Secretary of State for Transport, the right hon. Member for Runnymede and Weybridge (Mr Hammond), famously described the railways as a “rich man’s toy”. A few weeks ago, I challenged the Secretary of State in the Transport Committee about whether she agreed with that assessment and, understandably, she did not want to commit herself. She told the Transport Committee that she wanted to see the balance between the taxpayer and the fare payer move towards the latter. She also said that in the long term she wanted the fare payer to pay less. Well, she can have one or she can have the other, but she cannot have both. It is clear that unless the taxpayers’ contribution is increased, fares will not come down. The Secretary of State refused to answer that point at the time.