Oral Answers to Questions

Lilian Greenwood Excerpts

Thursday 20th March 2014 Commons Chamber

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

In 2012, the Department commissioned a study from Arup to look at electrification to the west of Newbury. We have already seen some of that study’s results, which indicate that there is a very good business case for going to Bedwyn, and further results from that study are being considered by the Department.

[Lilian Greenwood (Nottingham South) (Lab)]

First Great Western was originally due to pay more than £800 million in premium payments over the years 2013 to 2016, but the Government have now handed over the franchise for just £17 million a year. If there is now a further five-year extension on the line, with no competition, at the same time as Ministers are selling off the successful East Coast operator, will not taxpayers once again pay the price for this Government’s incompetence and ideology?

[Mr McLoughlin]

The hon. Lady should be careful about the points that she makes about that matter. She talks about First Great Western’s right to cancel the contract, but that right was given to it by the last Government when they negotiated the franchise. All it was doing was exercising an option that the last Government gave it. If she is saying that the last Government made a mistake in dealing with that matter, she might be right. I am determined to ensure that the people who are served by that franchise on that route get better services. That is why we will insist that first-class carriages are converted to standard class to provide more capacity on the line, and why we are improving the sleeper services down to Cornwall—something that has been welcomed widely.