Rail (East Anglia)

Lilian Greenwood Excerpts

Tuesday 3rd July 2012 Westminster Hall

[Lilian Greenwood (Nottingham South) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Bone. I am sorry that Mr Hollobone had to leave, because I know that we share a particular interest in rail investment.

I congratulate the hon. Member for Suffolk Coastal (Dr Coffey) on securing the debate and co-ordinating it so well with the publication of “Once in a generation—A rail prospectus for East Anglia”. She made an eloquent case on behalf of her constituents and the wider region. There may be competition for the title of the Cinderella of the railways—I am thinking of my midland main line—but the importance of improving Ely North junction has been put across strongly today.

The prospectus is a substantial document that presents strong arguments for future transport investment in East Anglia. I congratulate those involved in producing it. The east of England needs and deserves better transport links, particularly given the anticipated population growth, which hon. Members described. As a shadow Transport Minister, I welcome the prospectus’s publication, and I hope that it receives a sympathetic hearing within the Department for Transport. I look forward to the Minister’s response.

As many have said, the east of England is a net contributor to the Treasury, and better transport links could enhance that contribution. The prospectus reveals the patchwork of provision across East Anglia. Too many lines suffer restrictions on capacity, with passenger numbers on the west Anglia route alone expected to increase by 42% by 2021, leaving 59% of trains overcrowded. With the Government set to allow fares to increase by up to 11% next year, passengers expect and deserve better. As the hon. Members for Suffolk Coastal and for Central Suffolk and North Ipswich (Dr Poulter) rightly said, improving links to Felixstowe is vital for the expansion of rail freight, and to reduce congestion on the roads, cut carbon emissions and free up extra capacity for passenger services.

The proposals set out today would strengthen East Anglia’s vital economic links to London, but the document’s ambition does not stop there. The previous Government undertook improvements to lines and stations between Oxford and Cambridge, and the prospect of a reopened and revitalised varsity line is worth looking at in detail. The prospectus also presents a strong case for looking at modernisation of stock and track, including electrification, in East Anglia.

There is a compelling case for investment that meets local need and supports wider economic growth. The hon. Members for Witham (Priti Patel) and for Colchester (Sir Bob Russell) made a strong case on behalf of Essex and its potential for generating jobs through inward investment and business expansion. The hon. Member for Mid Norfolk (George Freeman) set out clearly how Norfolk and East Anglia can contribute to sustainable growth if properly linked to key centres, including the City of London. Perhaps next time I am on a windy Norfolk beach, I will try to remember that East Anglia is the California of Europe. The hon. Member for Ipswich (Ben Gummer) made an important point about the development of high-tech industries in that part of the country, particularly around Cambridge.

I agree that better infrastructure is needed to drive up passenger satisfaction rates, which are the lowest in the country. Unfortunately, I am concerned that Government policy may end up holding the proposals back. Labour Members have supported £528 million of efficiency savings in rail, but the Government have pushed ahead with a further £759 million cut to capital spending.

[Sir Bob Russell]

Will the hon. Lady briefly spell out all the improvements that the Labour Government made to the rail infrastructure in East Anglia in their 13 years in power?

[Lilian Greenwood]

Labour took action in government, and I am happy to say that transport spending in the eastern region increased in real terms during our time in power. In our last year in office, it stood at £1.494 billion, but I do not deny that a new approach is needed. That is why I will set out our proposals for a real devolution programme with transparent and fair regional funding. Unlike the Government’s proposals on devolution, ours include democratic accountability.

The prospectus makes a powerful case for investment in East Anglia’s rail network, but Government cuts have made it less likely that the funding will be found.

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

It is simply not true that the Government are slashing spending on our railways. We have embarked on the biggest programme of capacity expansion in the rail network since the Victorian era. The hon. Lady should get her facts right.

[Lilian Greenwood]

I am sorry that the Minister felt the need to spell that out, because she is wrong. She is cutting money from planned rail investment, and there will be an impact when hon. Members seek investment. I look forward to hearing what she has to say on the high-level output specification and what it means for not only East Anglia, but other parts of the country.

The hon. Member for Suffolk Coastal has said that she was reassured that

“it is not on the Government’s Agenda to reduce passenger rail services.”

She will surely hope, therefore, that the Government do not follow the model they adopted when they issued the west coast invitation to tender. The document allowed bidders to reduce daily stops at stations by up to 10%. Any reduction in service would be compounded by the McNulty report’s ticket office closures in the counties represented here today. Colchester Town in Essex, Thetford in Norfolk, and Whittlesford Parkway in Cambridgeshire, to give just a few examples, all face having their staff withdrawn. I am sure that the hon. Lady, having secured the debate, will also put pressure on her Government to ensure that existing services in East Anglia are protected. [Interruption.]

Passengers are already feeling the pinch. Services are overcrowded, and the Government have decided to increase fares by 3% above the retail prices index for the remainder of the Parliament. They have also given train operating companies the freedom to average out the rise, leading to fare rises of up to 11% next January. When personal and family budgets are under great pressure, with some commuters paying as much as £4,000 or £5,000 for their annual travel, the Government should be on the side of East Anglia’s commuters, not vested interests in the rail industry. [Interruption.]

[Mr Peter Bone (in the Chair)]

Order. If Mr Shelbrooke wants to intervene, would he mind standing, rather than grunting from a sedentary position?

[Lilian Greenwood]

Thank you, Mr Bone.

It is regrettable that the Government have added to the uncertainty about the future of East Anglia’s rail network. When National Express ceased to operate East Anglia rail earlier this year, the Government should have entrusted the franchise to public ownership through Directly Operated Railways, thereby providing stability in the run up to the Olympics. A two-year private tender with no long-term security or incentive for investment was not the solution East Anglia needed.

The Government’s tendering process in East Anglia also raises questions about their commitment to devolution. It is clear from the prospectus, and hon. Members’ contributions today, that there is local appetite for greater involvement in guiding infrastructure spending and delivery in East Anglia. We, in Labour, wish to promote that spirit by working more closely with local authorities to deliver a better transport system. The Government have already entered into negotiations with transport authorities in the north of England on potentially devolving responsibility for railway operations in that region. Why not do the same in East Anglia?

I urge the Government to listen to the calls in the prospectus to strengthen transport links to Stansted airport. Half of all passengers arrive at Stansted by public transport—the highest proportion for any major airport in the UK. Better transport links could help to relieve airport capacity constraints in Greater London without the environmental costs associated with other proposals. The Government are locked in distracting internal arguments on Heathrow expansion and fantasy islands in the middle of the Thames, but would it not be better to listen to those arguments instead?

In conclusion, I welcome the publication of the document and the spirit in which it was compiled. We want closer working between local authorities and other representatives, and we would back them with genuine devolved powers over transport spending. Discussions with the Department for Transport must now begin. There are many other worthy projects to consider at a time when capital budgets have been cut too far and too fast. Nevertheless, the report’s authors must be commended for the case that they have made on behalf of East Anglia, and I wish them all the best in their endeavours.

--- Later in debate ---

[Mrs Villiers]

I agree that a long franchise can give many more opportunities for a train operator to innovate, and for us to draw private sector investment into the railways.

We will launch a public consultation on the next Greater Anglia franchise later this year. A detailed business case will be developed, and, drawing on the results of the consultation, we are likely to appraise a range of improvement options. As to what goes into the franchise, I emphasise that we have no plans to remove daytime passenger services from the Felixstowe branch line, which was a matter of importance to my hon. Friend the Member for Suffolk Coastal. Although Hutchison Ports has proposed the change, it has an obligation under section 106 of the Town and Country Planning Act 1990 to fund the required infrastructure upgrades.

We have heard many other aspirations: there are the half-hourly services called for by my hon. Friend the Member for South West Norfolk, and the specific service changes called for by my hon. Friend the Member for Colchester (Sir Bob Russell). Decisions on those will be made only after the consultation has taken place, but I shall ensure that this debate is fed into the process.

[Lilian Greenwood]

Will the Minister give way?

[Mrs Villiers]

I am afraid I do not have time; I have only a couple of minutes left.

As for aspirations such as “Norwich in 90”—a campaign for that has been led by my hon. Friend the Member for Norwich North (Miss Smith)—it is too early to say what the franchise will specify for the train service between London and Norwich. However, in making such decisions we will need to take into account the interests of all the communities on the line, and those who live in intermediate destinations such as Chelmsford and Colchester. Whatever train service we adopt, we shall encourage bidders to put together affordable proposals for improved journey times and a better customer experience.

We did some work on options for Norwich to London before letting the short franchise, and that suggested that spending about £10 million to £15 million on new locomotives and refurbishing existing passenger vehicles would make it possible to save about seven minutes on most trains, and that could be funded in a 15-year franchise from additional revenue. However, that is just one option. We hope that franchise bidders will devise alternative plans that either cost less or produce greater benefits for passengers.

One factor, of course, that bidders will have to take into account is the requirement to make modifications to rolling stock by 2020, to provide proper access for people with reduced mobility. In response to all hon. Members who talked about the state of the rolling stock—some of it is fairly elderly—let me say that there will be changes over the next few years because of the deadline. The decision on whether that will involve targeted improvements, full refurbishment, new rolling stock or a combination of all three lies in the future, but change will have to be made. In the meantime, Abellio is pressing ahead with a deep clean of rolling stock.

In conclusion—