Inter-City Rail Investment

Kelvin Hopkins Excerpts

Thursday 9th January 2014 Commons Chamber

[Ian Swales (Redcar) (LD)]

I beg to move,

That this House has considered inter-city rail investment.

As well as London, the eight largest English cities have city deal status and another 20 are being agreed at present. I want to talk about rail travel between these city regions, especially those journeys that do not involve London. My speech will not be about HS2, except in passing, partly because that subject has already been aired at length, but also because journeys between the 29 city regions involve 465 possible trips, only 13 of which are directly covered by HS2. Those figures do not include Welsh or Scottish cities, but I am sure other Members may wish to comment on them.

If we look at past priorities for inter-city rail investment, we see that there has often seemed to be an assumption that the only thing people want to do when they get on a train is travel to or from London. Research shows that prioritising transport heavily on connections to a capital tends to suck economic activity into that capital. As Chris Murray, director of Core Cities, observed recently, this over-concentration is bad for the national economy in the long term. In contrast with other developed countries, such as France and Germany, the UK remains one of the most economically centralised countries in the world. The vast majority of significant companies and other institutions are headquartered in and around London.

London itself has major capacity issues, whether they be housing, schools, airports, local transport, water, sewage treatment or even land and labour. Immigration pressures from abroad or from elsewhere in the UK are felt heavily in London as it deals with its overheated economy. A London MP recently exemplified affordable housing in her constituency, it being defined as a two-bedroom flat costing £750,000. There is constant pressure for billions of pounds of taxpayers’ money to be spent addressing those capacity problems in the capital. Meanwhile, other areas, such as the one I represent, have all those assets freely available, including houses, none of which cost £750,000, surplus school places and capable people ready to take jobs.

The Government have a stated aim to rebalance the economy and I believe that inter-city rail investment can play a pivotal role in that endeavour. Others share my concerns. The former Business Secretary, Lord Mandelson, said recently:

“There are literally dozens of rail and public transport projects urgently needed across the country that would make a significant economic and social impact.”—[Official Report, House of Lords, 24 October 2013; Vol. 748, c. 1228.]

He also commented on the cuts to other inter-city services that accompany the HS2 proposals, including loss of service from Stoke, Stockport, Coventry and Wilmslow, and long journey times to Carlisle. The Institute of Directors reports that 80% of its members support increased investment in the existing inter-city network.

[Kelvin Hopkins (Luton North) (Lab)]

I commend the hon. Gentleman on what he has said so far. Does he not also agree that a spinal, dedicated rail freight route capable of carrying lorry trailers on trains and serving the north-east would have an enormously beneficial effect on the economies of the regions?

[Ian Swales]

I thank the hon. Gentleman for that intervention. I certainly agree with him and will mention rail freight later in my speech. He makes a powerful point which I know he has raised in the House before.

With excellent assistance from the House of Commons Library, I have conducted research on all the journeys between the English city regions, comparing fastest rail journey times against road miles as the best indicator of the actual distance between them. Many interesting facts emerge. The fastest journey times from nearly every single city region are on the lines to London. Average speeds range from 63 mph from the south coast to well over 100 mph from many other parts of the country.

For journeys between cities outside London, however, the overall fastest miles per hour speeds are in the 20s, and many are in the 30s and 40s. Fastest journeys can involve absurd dog-legging through London—for example, Cambridge to Sheffield, Ipswich to Newcastle and Swindon to Leicester—and journeys between the 29 key city regions can involve as many as four changes. Those figures are the consequence of past investment focused on hub-and-spoke systems based on London, and of under-investment on other routes, which has helped to concentrate economic and administrative power in the capital.

The record of the previous Government was poor, with too much micro-management but only nine miles of electrification investment. Fares went up by 66%, but subsidies went up £1.7 billion as well. Journey times are slower than they were 15 years ago, and 61% of UK businesses are concerned that the UK’s transport infrastructure lags behind international competitors.

I welcome the steps that this Government are taking. A good example of the work needed is the Milton Keynes to Oxford route. At 22 mph, it is one of the slowest possible journeys, so the Government’s decision to revive the east-west route to join those two city regions is very welcome and will provide the connectivity to help release potential. However, the Milton Keynes to Cambridge route, at 24 mph, will remain one of the slowest in the country. Other examples of very slow connectivity are the routes from Leicester to Coventry, Bournemouth to Bristol, Southend to Ipswich, Sunderland to Darlington—I could go on.

It is certainly welcome that the east coast main line is at last due to get modern rolling stock. Despite being one of the most profitable lines in the country, botched franchising deals have led to a sense that it is somehow a basket case, with consequent high fares and old trains. Passengers richly deserve the investment in new rolling stock and, as a regular user, I suppose that I should declare an interest.

It is worrying that a briefing I received for today’s debate from the Rail Delivery Group, a consortium of Network Rail and the train operators, states that the east coast line

“essentially serves two main destinations…Leeds and Edinburgh”.

It makes no mention of services that terminate in Newcastle or Aberdeen, of the 750,000 people in the Tees valley served by Darlington, or of numerous other towns and cities served directly or through connections. Sadly, the geography of many of the decision makers seems to get sketchy outside the M25.

One area that I want to highlight is the wide corridor of national importance through south Yorkshire and south Lancashire. It contains four of the six biggest cities in England, as well as many significant towns and other cities, and it is home to more than a quarter of the UK’s small and medium-sized businesses. Although it is already an economic powerhouse, it could be so much better with proper inter-city rail investment. Our forefathers recognised its importance by building one of the first cross-country motorways, the M62, to link Hull and Liverpool. How is the rail service through the region? The answer is, very poor. The 120-mile journey from Hull to Liverpool takes 30 minutes longer than the 214-mile journey from Hull to London, which means that it is at exactly half the speed. The vital commercial centres of Leeds and Manchester are joined by a service that runs at only 46 mph, whereas they both already have services to London at more than 100 mph.

Slow train times lead to far more people travelling by road, which in turn has an impact on train passenger numbers. They also give the appearance of low demand: no doubt that affects perceived investment, but this is surely a classic case of “Build it and they will come”. Getting people, and of course freight, off the roads also has major environmental benefits.

I welcome the many improvement projects contained in the northern hub initiative and the associated forecast of growth in passenger numbers, but they fall short of providing the kind of radical improvements that could transform the economy of the region. We need speedy train services to link our northern cities to each other, not just linking them separately to London and the south.

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[Ian Swales]

I thank the hon. Lady. I am sure the Minister is logging the various bids that are being made.

My area of the north-east has good journey times to London, but very poor journey times to other places. Is it right that it takes longer to get from Darlington to Manchester on a single train than it takes to get to London? The Secretary of State for Business, Innovation and Skills was stunned recently when he discovered how long he had to spend on the train when travelling from Liverpool to Darlington. Ironically, he was making the trip to be present at the inauguration of the new inter-city train factory at Newton Aycliffe, which is hugely welcome in my part of the world.

Rail investment is not just about passengers, but about freight, as the hon. Member for Luton North (Kelvin Hopkins) mentioned. It was good to see the recent but long-overdue investment by the Government to enable modern-sized containers landing at Teesport to join the east coast main line. However, a large modern port needs good connections to a wide hinterland and, again, the cross-country links are very poor. If such a container was destined for Preston, which is less than 100 miles away, it would have to go via Birmingham, so poor are the trans-Pennine links.

[Kelvin Hopkins]

I am pleased that the hon. Gentleman is talking about freight, even though this debate is essentially about passengers. Some 80% of freight in Britain and across the channel goes by lorry, not by container. Containers are splendid things and lorries are the problem. Do we not need to be able to get lorry trailers on to trains? To do that, we need a dedicated route with the height and gauge capacity to deal with it.

[Ian Swales]

The hon. Gentleman makes an excellent point. I am certain that the current trans-Pennine links would also be inadequate for that solution. I agree with what he says. This matter needs to be considered seriously. What is the point of investing heavily in rail freight handling in the Trafford area of Manchester, which is going to happen, if there is no easy route to the major ports on the Tyne, the Tees and the Humber? The ability of east coast ports to collect goods from northern businesses for export and to deliver imported goods and materials to them by rail should be a key economic driver.

As part of rebalancing the economy, the Department for Transport should be accelerating inter-city investment in the regions for three reasons. First, the economic benefits of constructing that infrastructure would be felt most strongly in the regions concerned. Secondly, the manufacture of infrastructure materials tends to be concentrated away from the south-east. An example is Tata Steel’s construction beam mill in my constituency. Finally, the provision of good infrastructure tends to lead to more economic development in the local region.

Rail investment should be used proactively to drive our regional economies, not just reactively to address overcrowding. Quicker travel would make existing businesses more efficient. Better city links would allow regionally based businesses to set up and expand more easily, and to take on London-based competitors.

As Jim O’Neill, the chair of the City Growth Commission, observed in a recent article in The House magazine entitled “Going for growth”,

“We already know that around the world, mid-tier cities generate higher economic growth relative to their populations.”

In the same magazine, Alexandra Jones, the chief executive of the Centre for Cities, noted that

“most of the UK’s largest cities…punch below their economic potential.”

The underperformance in the UK is due partly to our transport infrastructure. The excessive focus on London recently led the Secretary of State for Business, Innovation and Skills to say that London

“is becoming a giant suction machine draining the life out of the rest of the country”.

In closing, I want to emphasise the following points. A business person’s time is just as valuable when they are travelling from Newcastle to Bristol or from Norwich to Liverpool as it is when they are travelling to or from London. It should be possible to run an effective, competitive national or international business from any of our city regions, not just from London. The Government have a key aim of rebalancing the economy. I commend the work that is being done on city deals and through the regional growth fund. The Department for Transport needs to take up the challenge and play its full part in that rebalancing. After decades of under-investment, I welcome the renewed focus on rail investment that the Government are driving. I hope the Minister will explain how the Department’s inter-city rail investment policy will meet the ambition of making the whole economy more successful, and not just that of London and the south-east. I look forward to his response.

[Alison Seabeck (Plymouth, Moor View) (Lab)]

It is a real pleasure to follow the hon. Member for Redcar (Ian Swales). I was pleased to hear him say that we should talk about something other than High Speed 2. The money being spent on it is an issue in the far south-west, but we also have a lot of common concerns with his constituency. I thank the Backbench Business Committee for allowing this debate, which is important to my constituents and those of other Members who are in the Chamber.

I have lost count of the number of times that I and other Members with seats in the south-west have raised concerns about the need for investment in our inter-city services and improved resilience. Yet again, extreme weather is causing pressure, so we need that investment, but we keep getting batted away by London and Whitehall.

My constituents, local authorities and businesses all rely on rail connections, which have to be reliable and affordable. They also have to work around the need for freight, the importance of which I know my hon. Friend the Member for Luton North (Kelvin Hopkins) will speak about again today. He is right—if we want to grow our economy in the south-west, we need freight services that work and that fit around essential inter-city services.

We need to manage and plan growth to ensure that people are not priced off trains because of massive rises in ticket prices. Plymouth is more than three hours away from London—it can be three hours-plus-plus, depending on how fortunate people are on the day, and in the not-too-distant future it will take even longer because of the continuing works at Reading. Those works, which were started under the last Government, will make a difference, and there is no doubt that they are valuable, but they will extend the travelling public’s journeys for the moment. Of course, there is also the work on the Whiteball tunnel, which I suspect will mean a journey of closer to five hours.

We also have no air link to the city of Plymouth, and people often ask whether that is sensible for a city of such a size. Frankly, it is unlikely that there will be an airport, despite the hard work of a lot of local groups, without some guarantee of slots in London when the airport there is extended.

We have only two strategic road links into Plymouth. When I chaired the South West Regional Committee in 2010 and we reviewed transport across the south-west, the evidence that we received made it clear that the infrastructure, whether road, rail or air, was inadequate and could not support the level of growth that many local authorities and businesses feel we are capable of producing and adding to the wider UK economy.

Over the years, we have had less investment than any other part of the United Kingdom, with the possible exception of the north-east. Journeys to major cities such as Birmingham, Manchester, Leeds and Liverpool all take much longer than a journey to London and are convoluted. Part of the problem that we have on our stretch of line—the main line between Penzance and Paddington—is that to get to those cities we have to go on the slow, shared section of line between Taunton and Plymouth, which goes along Dawlish sea front and is frequently disrupted.

Inter-city train services that connect with community rail services and buses, with reasonably priced car parks at hubs, come at a price, a large part of which has to be borne by the passenger. I was gobsmacked to read the lobbying document that we received prior to the debate from the Rail Delivery Group, which made me ask whether its members ever travel on trains. The main thrust of the document was to act as an apologist for the privatisation process and laud the fact that it has

“significantly increased revenue whilst controlling operating costs.”

Really? Apparently, that has led to a financial surplus, but who benefits from that? Passengers on my wi-fi-less inter-city trains to Plymouth, who sometimes have to stand as far as Exeter, are certainly not feeling the benefit.

[Kelvin Hopkins]

I wish to reinforce my hon. Friend’s point about privatisation. Sir Roy McNulty concluded that our railways cost 40% more to operate than continental railways that are integrated and publicly owned, and that before privatisation, British Rail had—believe it or not—the highest level of productivity of any railway system in Europe.

[Alison Seabeck]

My hon. Friend makes a strong point about the different ways of managing a rail network. When we compound that with the botched franchising process, which exacerbated problems, particularly in the south-west, I think the travelling public are beginning to lose faith. Of course those companies have invested in their services, and there is no doubt that their staff are working hard to ensure that the passenger experience improves—indeed, it has improved and they deserve credit for that. I am still not sure, however, how much that increased revenue has reached down to the far south-west where we still have slam-door rolling stock.

On our line, the new fare for an anytime standard open return from London to Plymouth with First Great Western is £271, and to Penzance—where at least some consideration has been given to the needs of the area—it is £284. If families who are struggling with the cost of living decide to holiday in the lovely south-west—who would not want to come to the south-west?—that starts to look like a very expensive option, unless they can get one of the cheaper deals which, as we know, disappear very fast indeed. I genuinely feel that passengers do not think they are getting value for money.

Plymouth’s inter-city connections are vital to the city’s growth plans, yet spending per person in the south-west is now in negative real-term figures—the hon. Member for Redcar spoke about how his region is suffering in a similar way in terms of investment. How does that square with the supposed policy of regional growth? The total identifiable expenditure on rail in my region has slumped from £286 million in 2008-09 to just £218 million in 2012-13. So much for a Government who believe that growth and investment in infrastructure are linked. Actions speak louder than words.

We in Plymouth are also concerned that we are not on the strategic national corridor, which for some bizarre reason stops at Exeter and does not go on to the 15th largest city in England. As long as that continues and we are not part of the strategic national corridor, we will continue to see poor levels of investment in our routes in inter-city services. Indeed, I would go further and suggest a real lack of interest in Whitehall in any area outside that corridor.

There is no doubt that distance and accessibility impact directly on the way business costs are assessed and on the logistics of companies. It has been estimated that for every 100 minutes of travel time from London, productivity drops by 6%. Tackling that underperformance by supporting our rail links, inter-city services and connections to the main line could be hugely beneficial to the wider UK economy. We are, however, talking a little bit about jam tomorrow. I am sure the Minister will mention the benefits of electrification, but those will not percolate down as far as Plymouth—certainly in the immediate future—partly because of the unresolved issue of the line between Exeter and Plymouth via Dawlish. Any benefits of electrification are decades away, and whoever is in power after the next general election must stop pushing the issue away. That is why we must ensure—as those on the Labour Front Benches have insisted—that High Speed 2 is not some open-ended cheque, and that we keep a lock on how much money goes into it.

I have not even mentioned resilience and the importance of keeping the rail line open to rail companies as well as our local economies. Some £178 million was lost when the line was closed last year because of flooding at Exeter and further down the line, and we had no inter-city service for some considerable time. I cannot understand why it has been so difficult to get the heads of the Environment Agency and Network Rail to agree on a plan. We were told that £31 million had been earmarked for work to ensure the trains could get through, but we now hear that that has gone down to single figures. What is going on? Perhaps the Minister will answer that when he responds to the debate. Is the CEO of the Environment Agency correct when he says that cuts will impact on that type of maintenance? In questions to the Secretary of State for Environment, Food and Rural Affairs, the hon. Member for South West Devon (Mr Streeter) asked a question on that issue. Significant remedial investment is needed if the far south-west is to have more than a fair-weather inter-city service.

My key asks for Plymouth and its inter-city connections are: that the Secretary of State continue to guarantee the money for the resilience work at Exeter and beyond, and that it is clearly aimed at keeping the network open and not just blocking it off; that we get an early morning arrival in Plymouth from London, which was promised by the franchisee but appears to have drifted off the agenda, like so much else; and that we benefit from newer rolling stock, rather than the ancient units that currently serve our railway and undoubtedly slow the service down. Demand is expected to outstrip capacity on both branch and inter-city services, so we need confirmation from the Minister today that the displaced diesel stock following the electrification of the main line in south Wales will be cascaded on to the main line between London and Penzance. On that, I will finish and allow other Members to express their concerns.

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[Kelvin Hopkins (Luton North) (Lab)]

It is a great pleasure to speak in this debate on a subject about which I feel very strongly and in which I have a great interest. I congratulate the hon. Member for Redcar (Ian Swales) on securing the debate and on what he said during his speech, which contained a good deal of common sense. In fact, it reflected the conclusions of the Eddington report of some years ago, the focus of which was on improving the network as it was, rather than on more adventurous schemes.

Railways are clearly the major mode of land travel for the long-term future. Anyone who tries to drive by car to and from London these days has a problem, despite some improvements in motorway traffic. It is the railways that will provide the transport of the future. Passenger numbers are increasing massively in spite of privatisation and higher fares because rail travel is the only practicable way to get to and from work. I speak as a 45-year rail commuter on Thameslink and its predecessors from Luton. I see every day the problems on the other side of London—on the same line that the hon. Member for Brighton, Kemptown (Simon Kirby) mentioned. Fortunately, I live far enough out to get a seat most days, but by the time we get to St Albans passengers have to stand. Indeed, yesterday, there simply was not enough space on the train and many passengers were left on the platform, having to wait for later trains—it was that crowded.

There are severe difficulties on those commuter routes, but we are talking today about inter-city rail. Forty years ago, I was responsible for transport policy at the TUC. In those days, railways were seen to be in decline and people lauded the car as the future. Even then, I passionately believed that railways were the future and that we had to preserve what we had. Fortunately, we hung on to just enough to make it credible, and we still have the great Victorian-built lines providing city centre to city centre travel, which is so valuable. The convenience of being able to get on a train in a city centre and be taken directly to another city centre is an enormous advantage.

I urge the Minister to support specific investments, some of which are already moving forward—rather too slowly and very late, but they will, I hope, get there eventually. It is vital to continue the electrification of all major routes, so that we have electrified major routes across the country.

[Oliver Colvile]

The hon. Gentleman makes a serious point about electrification. Tim Smit runs the Eden project. In the last five or six years he was asked what one thing would make a great difference to the south-west. He told the then deputy leader of the Conservative party that electrification down to Plymouth would do an enormous amount of good for the west country.

[Kelvin Hopkins]

I entirely agree, and I was intending to mention the point later in my speech.

We need to extend direct electrified services not merely to cities on the major routes. I support electrification to Hull, so that direct electrified services can run from King’s Cross to Hull without the need to change trains. I see in his place the hon. Member for Cleethorpes (Martin Vickers), who represents an area on the other side of the Humber. Electrified services to Grimsby and Cleethorpes would be a good thing, too. My hon. Friend the Member for Plymouth, Moor View (Alison Seabeck) mentioned the south-west, and it is clear that that area needs improvements.

[Ian Swales]

As we are all bidding for electrification, let me point out that the Grand Central service from Sunderland to London runs on a non-electrified line north of Northallerton through Eaglescliffe and Hartlepool.

[Kelvin Hopkins]

I think we are well behind the rest of the world in electrifying our rail routes and we need to do a lot more. It is happening, but it is going to take some time yet. We should have done this years ago.

Hon. Members have mentioned some of the corridor routes I intended to speak about, such as that from Liverpool, Manchester and Leeds to York. A modern, electrified fast service linking those great cities would be a tremendous boon to the north. I am obviously not speaking on behalf of Luton here; I am speaking about my interest in railways and in the country in general.

A second electrified route should link York, Sheffield, Derby, Birmingham, Bristol, Exeter, Plymouth and Penzance, which would provide a real chance for growth, particularly in the south-west, as my hon. Friend the Member for Plymouth, Moor View said. Those are two important corridors, and I could provide more detail on others. Fast electrified services would greatly benefit the relevant regions.

In a rail debate on 31 October I set out a scheme for upgrading and improving the east coast main line from London to Edinburgh. I shall not go over the detail again now, as I want to reserve my time to deal with other schemes, other than to say that this is another important investment that should go ahead to improve capacity and speed on the east coast.

I want to focus today on a particular scheme. I have mentioned it before, but I want to re-emphasise its importance. I believe it would be a major advance to upgrade the Birmingham, Snow Hill to London line, which passes through Solihull, Leamington Spa, Banbury and other towns, on which only a handful of trains currently run each day to and from Marylebone. The line also runs directly to Paddington—a much more useful London terminus that links directly with Crossrail and thus to the City. Snow Hill is in the centre of Birmingham and easily accessible to the business district.

There is, however, a much more compelling and exciting possibility for this route. If it were to be electrified, a simple link to Crossrail at Old Oak Common would provide direct passenger services between the centre of Birmingham and the City of London and, indeed, Canary Wharf. Business travellers would have available direct travel from city centre to city centre with no changes required, thus saving time and inconvenience. But there is more: the electrified Snow Hill to London line could also branch off at Greenford to join Crossrail going west, thus providing a direct service from Birmingham city centre to Heathrow. The electrification of that line and those two links with Crossrail would together cost no more than £500 million.

There is still more. The Snow Hill line has a branch at Leamington linked to Birmingham airport, which opens up the possibility of direct, non-stop electrified 125 mph services between Birmingham and Heathrow airports, as well as a direct link between Birmingham airport and the City of London via Crossrail. A journey time of one hour between the airports would be a boon to both of them, making Birmingham effectively a satellite of Heathrow and possibly removing some of the pressure from the growth of passenger traffic there, as well as being advantageous to workers in Birmingham.

I believe that the scheme would be enormously beneficial economically at both ends of the route. It would breathe extra life into the economy of the west midlands, and it would take a bit of pressure off London. It would also be helpful to services going further north. It would be possible to travel to the airport from Birmingham New Street and on to that route directly as well. There are numerous exciting possibilities, provided that the whole line is electrified and upgraded. Even now, it would be capable of 125 mph services, which I think would be sufficient for the journeys to which I have referred.

I urge the Minister, Opposition Front Benchers and Network Rail to give serious thought to my proposal. It is not just my own idea; it is based on detailed advice from experienced railway engineers. It would work, it would be easy to construct, and it would bring great benefits at modest costs. I commend it to fellow Members, and especially to those on both Front Benches.

[Martin Vickers (Cleethorpes) (Con)]

It is a pleasure to follow the hon. Member for Luton North (Kelvin Hopkins), who always speaks so knowledgeably about railway matters.

I join others in congratulating my hon. Friend the Member for Redcar (Ian Swales) on securing the debate. It has given us an opportunity to praise the Government for a remarkable and very welcome increase in funding for our rail network—a network which, since privatisation, has seen a staggering increase in passenger numbers and in the amount of freight carried. It has also given Members an opportunity to argue in favour of yet more investment in their constituencies, or, at the very least, the transfer of some of the existing resources to their own areas. I shall say more about that shortly.

My hon. Friend the Member for Redcar spoke of the importance of connections to London and, indeed, to other areas. My constituency suffers badly as a result of its lack of such connections. There was a time, in living memory, when it was possible to get on to a train in Cleethorpes and travel to other major cities such as Leeds, Birmingham and Leicester. I know that Ministers are fully aware of the importance of good transport links to the economic development of all parts of the country, but I must emphasise their importance to more peripheral areas such as northern Lincolnshire.

The Government have recognised the importance of northern Lincolnshire and the wider Humber region as a major centre for the renewable sector, and have demonstrated their commitment to the area by creating the largest enterprise zone in the country and providing support through the recently signed Humber city deal. More recently, the Department for Transport gave Able UK permission to go ahead with its South Humber energy park and associated developments, which should provide thousands of new jobs. That is all good news, but if we are to maximise the benefits to the area, we shall need improved rail connections.

The main passenger services to northern Lincolnshire are provided by First TransPennine Express. There is a good hourly service between Cleethorpes and Manchester airport in each direction, which, with stops at Doncaster and Sheffield, connects with the wider network, but changes are inconvenient and add to journey times. Let me give a couple of examples. Last autumn, I attended the annual dinner of the Grimsby and Immingham Chamber of Commerce and Shipping. One of the guests was the Finnish Ambassador, who expressed his surprise at how long it had taken him to travel to Grimsby from London. Another example can be found in an article in The Sunday Times on 29 December. The journalist A. A. Gill travelled to Cleethorpes last October and in his article he says that he could have flown from London to Moscow quicker than it took him to get from London to Cleethorpes.

The Grimsby-Cleethorpes area needs more direct train services, particularly to London, in order to achieve the full economic potential I mentioned. To give an historical perspective, until 1970 there were two direct trains between the Grimsby-Cleethorpes area and London via the then east Lincolnshire line through Louth, Boston and Spalding through to Peterborough and on to the main line. I remember travelling on the last service train on 4 October 1970. The service fell at long last after a seven-year fight; it was sacrificed to the Beeching plan.

For the following 22 years we retained direct services to London. They ran via Market Rasen and Lincoln. That remains one of the options for a new franchise-holder. Certainly improvements are needed on that line, which is the Cleethorpes to Lincoln line. Most of the services are provided by a single car unit.

[Kelvin Hopkins]

The hon. Gentleman mentioned Beeching, and there are still a large number of corridors that are unused. Does he agree that it is vital to protect those corridors for possible future use, when, hopefully, we invest in even more railways than we have now?

[Martin Vickers]

I certainly agree with the hon. Gentleman and I think that even people who were connected with producing the Beeching plan have since acknowledged that the closure of the east Lincolnshire line was a marginal decision at the time and certainly in today’s climate it would not have been closed. Unfortunately, however, at various points that line has now been blocked off and it would take billions of pounds to reinstate it.

I was mentioning the services on the Lincoln-Cleethorpes line provided by a single unit. When passengers get on the conductor says. “When we reach Market Rasen, passengers will have to stand. Please make sure that all seats are clear.” East Midlands Trains acknowledges that the service it provides with that single unit is inadequate, but apparently there is such a shortage of units that it is unable to improve on it.

The Government have an excellent record on electrification. Electrification of the route from Manchester to Sheffield is edging nearer and the possible extension through to Doncaster is being considered. If that becomes a reality, which it must, then completion of the final 50 miles into Immingham, Grimsby and Cleethorpes must surely be worthy of inclusion.

Immingham is a major centre for railways; indeed, it was the railways that built it. It was a creation of the Great Central Railway just over 100 years ago in 1912. Today, measured by tonnage, around 25% of the freight moved by rail starts or ends its journey in Immingham, much of it of strategic importance—oil, coal and the like. That, together with the growing potential for passenger traffic, must make a case for, at the very least, a feasibility study into the viability of electrification of the final section of the south Trent-TransPennine line, the Doncaster to Immingham and Cleethorpes section.

Despite considerable capital investment over recent years the main route from Cleethorpes to Doncaster, which covers just 50 miles, takes 70 minutes. We must do better than that, particularly since we describe the trains on that route as TransPennine Expresses.

In this afternoon’s earlier debate on rural communities I heard my hon. Friend the Member for Gainsborough (Sir Edward Leigh) refer to the Saturdays-only service from Sheffield through Gainsborough and Brigg to Cleethorpes. This line was the Great Central main line and yet it has come to this—a once-a-week service. It provides a shocking service not only for my hon. Friend’s rural community, as he said, but for the industrial centres around Immingham and Grimsby and for the east coast premier seaside resort of Cleethorpes.

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[Sheila Gilmore (Edinburgh East) (Lab)]

I congratulate the hon. Member for Redcar (Ian Swales) on securing the debate, and I thank the Backbench Business Committee for allowing it to take place. I cannot help but reflect that, should our predecessors of 40 years ago walk in here today, they would be surprised to see the extent of the interest across the House in rail investment. We might disagree on some of the mechanisms for achieving it, but there is now a high level of agreement that this is the way forward. This follows a period in which, sadly, we were diverted towards the wrong future, and I hope that we are now heading towards the right one.

Regrettably, some decisions are still going the wrong way. For example, the Scottish Government have chosen to build a new road bridge across the Forth, connecting Fife and Edinburgh, without any new rail connection. That is a missed opportunity. We had an opportunity to put in some sort of double-decker bridge; there are ways to build both road and rail together, if we did indeed want more road capacity. We are going to regret this decision in the not-so-distant future. The building has started, so the bridge is, unfortunately, going to go ahead, but I think that within months of it opening the call will be, “What on earth did you do that for when the congestion in the area and the car drive into the city are going to get worse and the rail link would have been a fantastic advantage?” Of course, we do have a rail bridge, of considerable antiquity. It is an iconic piece of rail architecture for the whole UK, but it does act as a bottleneck on a journey that more and more people want to make, in a way that they did not before. Even in a general atmosphere where railways have come back into their own, we are at times in danger of making the wrong decision.

I wish to discuss the mechanisms and the Government’s decision to re-privatise inter-city services on the east coast main line, because that is having an impact on investment on other inter-city routes. I have raised this matter previously and I do not apologise for doing so again, because it is important; I have not yet been given any clear answers from Ministers, so I am going to ask some of the same questions.

I wish to make some brief remarks on High Speed 2 and public investment in inter-city rail generally. There are different views across the House on HS2, but those of us who support it must deal with the danger of a perception that it will not have any benefits for the rest of the network. HS2 will enhance capacity on other key routes: trains will continue on the classic network to serve other destinations; space will be freed up for services to smaller towns and cities; and, providing high-speed platforms are properly integrated into existing stations, people across the country will have access to high-speed trains. We need that form of travel, in both directions. I understand the fear about the pull to the south-east, but that pull is happening in any case, for all sorts of other reasons, not least the lack of employment in the north. We need to address that, but not grasping the nettle is the wrong way to go.

Futurologists from 40 or 50 years ago might well have thought that people would not need to travel now because they would be able to talk to each other by all sorts of new mechanisms, and indeed they can. I used to tease my husband, who works in IT, in the academic community, which has always been quite far ahead on things such as networking, by asking him why he needed to travel to conferences and to London because he could do everything by video conferencing. I asked why on earth he was going yet again. Of course, as I pointed out to him when I thought about it, people cannot have conference dinners by video conferencing. That is not an entirely facetious point to make, because, as we all know from our party conferences, when people meet at events what goes on outwith the main setting in terms of networking, catching up with people and having those debates and conversations is hugely important. Human communication has not been supplanted by all the technology at our fingertips.

[Kelvin Hopkins]

My hon. Friend is making a sensible point. Does she agree that trains also provide opportunities for human interaction, business talk, discussion and work to be done? Trains are wonderful things in that respect.

[Sheila Gilmore]

They certainly do provide those opportunities, but occasionally I hear more about other people’s business on the train than I want to know. For that reason, I am glad to see more quiet coaches. When my father used to complain about people talking on mobile phones on the train, I used to think that he was being an old fusspot. However, I have to say that although it is good to have some sort of business interaction on the train, it would be nice not to have it right in my ear when I am trying to work. Interestingly, on the east coast main line, the quiet coaches are now the most popular and most booked up of all the coaches. That suggests that I am not in a minority on the matter. It is true to say that we can do a lot of work on trains that we cannot do flying.

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[Sheila Gilmore]

My understanding is that when phase 2 is in place, we could save a full hour—perhaps slightly more—of the journey time. As we are talking about a long time scale, I am not averse in any way to looking at ways of improving the speed on existing rails. One thing East Coast has done, which is helpful, is introduce a train that leaves Edinburgh early in the morning and arrives in London at a time that allows people to attend meetings. It does that by having fewer stops, so there is always a trade off. By only stopping at Newcastle and then coming straight through, it has shaved off time. The only downside is that the train departs very early in the morning. We are privileged here in the House of Commons. As we go through until 10 pm on a Monday night, we do not start work at 10 am, which would be difficult.

Leaving aside the whole HS2 debate, we welcome the fact that intercity lines in other parts of the country are receiving significant public investment for electrification, new rolling stock and so forth. Of course, it is important to emphasise that all that investment is public and coming from the taxpayer. That fact was reinforced last month when the Office for National Statistics announced that it would reclassify Network Rail as a central Government body from September. That is an acknowledgement that it is not outwith the Government.

Part of the promise of privatisation was that it would generate investment, but it has not done so. We must be realistic about that. What about the level of private investment in other inter-city routes following the Government’s decision to prioritise the franchise competition for the east coast? I am sure that Members will remember that under the Government’s initial franchising timetable, a new contract for the west coast main line was due to start in October 2012, with Great Western starting in April 2013 and east coast in December 2013.

After the debacle of the west coast bidding process, a new timetable was announced last March. The east coast main line, which was previously last in the queue of those big franchises, was brought forward so that it would be let before April 2015. As the Government accepted the recommendations of the reports produced after what happened with west coast that only one major franchise should be dealt with at a time, that was only made possible by giving the current operator of the west coast main line—Virgin—a four-and-a-half-year franchise extension to April 2017. The operator of the Great Western line, First, was given a two-and-a-half year extension to September 2015. That is 77 months of extensions between the two operators.

Ministers who prioritised the east coast franchise and justified it by referring to the Brown review are presumably reiterating their belief that competition in the bidding process should drive private investment. Although franchise competition might achieve that, franchise extensions clearly do not. The Government have lost any bargaining chip they had in the process. Having made that set of decisions, they had no option but to negotiate with the existing operators. The only bargaining chip Ministers could use would be to threaten to call in East Coast’s parent company, Directly Operated Railways. The operators know the Government’s reluctance to do that and the very fact that they want to extract the east coast franchise from DOR shows that, quid pro quo, they would not want to put the other routes into DOR’s hands. That means that competition is effectively absent.

The companies have no incentive to invest during the remaining time for which they are operating the routes and have every incentive to demand significant subsidies. The extensions are likely to cost us, the taxpayers, dearly. In 2011-12, Virgin paid the Department a premium of £165 million and First Great Western paid £110 million. Will the Minister confirm that following the agreement of the extensions, payments of such an order are unlikely to be made? Perhaps he could confirm what sort of payments he anticipates. Will the Minister also confirm that apart from the roll-out of wi-fi on First Great Western, which we would have expected from any operator, the two extensions offer no improvement for passengers?

My key contention is that if the east coast franchise had not been prioritised, those extensions would not have been necessary and the competitions for the west coast and Great Western franchises could have been held much sooner had the Government wanted to pursue them.

[Kelvin Hopkins]

I entirely agree with my hon. Friend. Does that not illustrate that the determination to re-privatise the east coast main line is driven by dogma, not reality?

[Sheila Gilmore]

I think that it is. I do not propose to reiterate all that has been said by so many of my Opposition colleagues in several of the debates we have had on this subject about how East Coast has performed. Given the history, it is particularly frustrating. As I have campaigned on the issue and talked to people about it, I have found that the levels of support we get are extremely high.

People who are not politicians and who are not involved in the debate at that level are baffled as to why, when the east coast main line has already been through two difficult franchising periods, this should be happening in that way. Given what we have learnt, they ask, “Why are we doing this if it is working well? If it is working well, why not leave it in place and see what happens?” As I have said, that would not necessarily have prevented the Government proceeding with other franchises, if that is what they were determined to do—some people would certainly have preferred it if they had not been. It seems particularly perverse to pick this one. That is what many members of the public feel, and not just those who travel on the line regularly.

There is a lot of concern about how this will work out. If East Coast had been performing badly in the public sector, it would have made sense. An imperative to turn it around might have trumped the disadvantages of negotiating extensions on the west coast main line and the Great Western main line. But East Coast was and is performing well, and that defence is simply not available to Ministers.

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[Lilian Greenwood (Nottingham South) (Lab)]

I congratulate the hon. Member for Redcar (Ian Swales) on securing this debate, which has addressed some national issues. Important constituency concerns have been raised by hon. Members, including those who represent Plymouth, Brighton, Cleethorpes, Luton, Edinburgh, and St Austell and Newquay.

There has been shared agreement across the House that strengthening rail links between our cities is an important step to achieving balanced economic growth for individual cities, city regions, and the nation as a whole. I am sure that all Members who have spoken today will work to ensure that although individual disagreements may arise, the commitment to an ongoing programme of investment endures.

There has been much positive talk today about future developments, and I know that for many hon. Members, those projects cannot be delivered fast enough. I entered Parliament with a pledge to campaign for the electrification of the midland main line, and although some issues still need to be addressed, the improvements look on course to reach the east midlands by 2019, and Sheffield by 2020.

Electrification will ensure faster, more reliable services, as well as delivering environmental and efficiency gains. We have heard other examples of how planned projects will benefit communities, including from my hon. Friend the Member for Plymouth, Moor View (Alison Seabeck), and other south-west MPs who are very much looking forward not only to electrification, but to modern Intercity Express Programme trains, investment in improved resilience, and even wi-fi and power sockets.

As we begin to plan for control period six spending in the next Parliament, we must consider how other links can be strengthened, new links made, and Beeching-era lines reopened where there is a clear business case to do so.

It is worth remembering just how far the rail industry has developed in the past 15 years. The 1997 Labour Government inherited a fragmented rail network. Years of underinvestment had left a dated fleet, much of it still using slam-door carriages, which was to prove inadequate against a backdrop of rising passenger numbers. The popular and successful inter-city brand had been broken up. There had been 1,000 days without orders, which had caused permanent damage to the supply chain. Disastrously, the recently privatised infrastructure body had little understanding of its assets, and Railtrack’s over-reliance on subcontractors put passengers’ safety in danger.

[Kelvin Hopkins]

I congratulate my hon. Friend on her speech. Would she say that it is a tragedy that Britain, which gave railways to the world and built them all over the world, is now importing railway equipment because in some cases we cannot build it ourselves?

[Lilian Greenwood]

I certainly agree with my hon. Friend that it is important that we support and develop our railway engineering industry, which has such a proud history and continues to provide important sources of employment, particularly in my area in the east midlands.

Contrary to what the hon. Member for Redcar said—I have to disagree with him on this—I think we should be proud of Labour’s achievements. After ending the failed Railtrack experiment and establishing a tough new regulator, our railways became the safest major European network by 2010. There was a major programme of investment in rolling stock. More than 5,000 new vehicles were ordered between 1997 and 2006 alone, both to replace older trains and to allow for an expansion of services. The number of long distance passengers, and the services run to accommodate them, doubled since the mid-1990s, and with that growth came new pressures on our existing lines. We are now accommodating the same number of passengers as we did in the 1920s, but on a network that is less than half the size. That is why the previous Government committed to a number of important projects to improve capacity and overall performance of the network, including the electrification of the Great Western main line to Swansea and key lines in the north-west, and a new generation of inter-city express trains to replace the ageing rolling stock on the Great Western and east coast main lines.

It was the Labour Government who committed to Crossrail and introduced a £6 billion upgrade of the Thameslink route that will massively increase capacity on one of the busiest stretches of track in Europe. After the completion of HS1 in 2007, Lord Adonis set out plans for a new network to relieve capacity constraints on our north-south main lines, and to provide better connections between cities in the midlands and the north. They will address some of the very slow journeys highlighted by the hon. Member for Redcar, and provide improved capacity and connectivity to our national network.

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[The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)]

It is an honour to address the debate this afternoon. I congratulate the hon. Member for Redcar (Ian Swales) on securing the debate and on the way he conducted it. His speech was interesting and thoughtful, and he proved by his journey time calculations and recalculations that he can do mathematics.

We heard some fascinating contributions from a number of other Members. The three Members from the south-west were united across the political divide in wanting to see improvements to train services in the south-west, particularly the three-hour train to Plymouth. I remember campaigning in the city, along with the hon. Member for Plymouth, Moor View (Alison Seabeck), back in 2007. The failure of investment about which she complained has not happened only under this Government. I can, of course, bring her good news. She quoted a fare of £271. Should she choose to travel tomorrow morning, there is a return fare of £92, so one needs to be careful about saying that only one fare is available.

I heard the pleas of my hon. Friend the Member for Plymouth, Sutton and Devonport (Oliver Colvile) about Mayflower 2020 in Plymouth. I do not know whether he will see President Christie turning up there. He invited me to come to a meeting, and I would be delighted to do so. I follow his lark in saying that I hope he is here for rather longer than just for 2015, and I am sure he will be.

I say to the hon. Member for St Austell and Newquay (Stephen Gilbert) that I can only imagine how frustrating it must be to go back to the constituency in the middle of the night to find that the film has been lost. The prospect of corresponding with him fills me with unbounded joy. I look forward to receiving and acting on his suggestions none the less.

The two Members representing Brighton shared a moment of political unity. I certainly hear their pleas. I can confirm that the Department received a draft in December of the report to which Baroness Kramer referred—the London to south coast rail study, which was carried out by Network Rail—and I expect to see a final version within the next couple of months.

I can bring some good news to my hon. Friend the Member for Brighton, Kemptown (Simon Kirby) on the basis that Thameslink will see 116 new trains of eight and 12 cars coming into operation, which will directly benefit his constituents. I am delighted to tell him that when he opens his post tomorrow morning, he will find a letter from me accepting his challenge to come and travel on the early morning train. I very much look forward to doing that.

I was not entirely surprised to hear the contribution of the hon. Member for Luton North (Kelvin Hopkins). He and I have enjoyed sparring over issues for the last few years. I listened with interest to his comments about the Birmingham Snow Hill line, and I am sure that he will want to raise his point about it with us again.

I understand the call of my hon. Friend the Member for Cleethorpes (Martin Vickers) for more initiative and private sector innovation in franchising. I hope that, through the direct award and the new refranchising process, we will be able to deliver that for him.

I enjoyed the contribution from the hon. Member for Edinburgh East (Sheila Gilmore), although I had obviously heard it before in previous debates of this nature. The simple fact is that the east coast main line is the worst-performing of the long-distance franchises. Its passenger satisfaction figure may be up, but it is still six points behind the figure for the west coast main line.

We heard a wide range of contributions today, and I am grateful to Members for taking the time to be here. The debate has shown how valuable the railways are to our country, and to communities throughout it.

[Kelvin Hopkins]

Will the Minister give way?

[Stephen Hammond]

I am sorry, but I do not have time.

As for what was said by the hon. Member for Nottingham South (Lilian Greenwood), let us have some honesty in this debate. When Labour was in office it crashed the economy, and gas and council tax bills doubled. Had her party been in office today, the average fare would have risen by 11% rather than 3.1%. Moreover, in 13 years, we saw just 9 miles of electrification. Just as we are dealing with the economic mess that was left behind by the last Government, we are determined to deal with the massive infrastructure deficit that we inherited. [Interruption.]