(12 years, 9 months ago)
Commons ChamberI welcome the opportunity to debate the Select Committee’s report on transport and the economy. It has given many hon. Members the chance to raise constituency concerns, which I hope the Minister will respond to when he sums up.
I was going to say that it was noticeable that almost all the speakers in the debate were MPs representing towns, cities and rural areas in the north, but then we had contributions from the hon. Members for Rugby (Mark Pawsey) and for Stroud (Neil Carmichael), which broke the flow somewhat. None the less, I am sure the Minister will want to reflect on the implications for Government policy of the concerns expressed by northern MPs and the fact that good transport links are demanded by the north.
The Select Committee report looks at the big picture and asks some searching questions of the Government, which the Minister must answer. At the heart of the report is the Committee’s conclusion that Ministers have failed to explain how their decisions on investment in transport will deliver the economic growth and rebalancing they say are needed. Of course that could be a failure of communication, but I think it is a failure arising from the absence of any strategy or joined-up thinking from this Government.
People throughout the country know that the biggest and most pressing problem we face is the lack of jobs and growth. There are 2.7 million people on the dole—the highest number for 17 years—representing a huge cost to the economy in benefit payments and lost tax, a huge cost to the individuals affected and their families, and a cost to their local communities, many of which, especially in the north, are all too aware of the long-term scarring effects of unemployment. The Government should have a laser-like focus on using every aspect of policy to turn things around by creating jobs, supporting industry and getting our economy moving.
Transport should have a key role to play, but time and again we have seen this Government take decisions that send us in the opposite direction. It is not just that they have cut spending too far and too fast, but that they have made the wrong choices. Labour has not opposed £6 billion of difficult and painful cuts to the transport budget—two thirds of the cuts proposed by Ministers—but we would have made different decisions about how to spend the remaining money to protect passengers and deliver the maximum benefit to our economy. Labour would have protected additional investment in the rail and road network as part of a five-point plan for growth and jobs.
No, I think the hon. Gentleman misunderstands me. As I said, we have not opposed £6 billion of difficult cuts to the transport budget, whether that is capital or revenue funding, but we would have maintained a further £3 billion and we would have spent it in different ways, as I will set out.
We would have protected £500 million for road schemes vital to economic growth, providing a much-needed boost to our construction industry. We would have made sure the £435 million needed for essential road maintenance went ahead, saving the taxpayer money in the long term, according to the National Audit Office. Labour would not have cut £759 million from the rail budget; we would have put passengers first and tackled affordability. We would not have allowed the private train operating companies to boost their profits with eye-watering fare rises of up to 11% this January, 5% more than the RPI plus 1% that the Government told passengers they could expect, which means that some people are spending more on their fare to work than they do on their mortgage or rent. That is not helping to make work pay; it is just adding to the cost-of-living crisis that households are already facing.
Labour would put working people first by taking on the vested interests. We would not have given back to train companies the right to fiddle the fare cap, so that when we said that fare rises would be limited to inflation plus 1%, the public would know that that was the maximum rise they would face at the ticket office. We would also have been able to bring forward the much-needed electrification of the midland main line that, as my hon. Friend the Member for Leicester South (Jonathan Ashworth) and my neighbour, the hon. Member for Broxtowe (Anna Soubry), who is no longer in her place, pointed out, is so important to improving connectivity between London, Northamptonshire and four of the largest cities in the country: Derby, Leicester, Sheffield and, of course, my own city of Nottingham. We would have started the electrification of the great western main line, but we would have gone right through to Swansea, rather than stop at Cardiff.
The hon. Lady is busy telling us about all these spending commitments, but she is also saying that she would make £6 billion of cuts, so will she identify where those cuts would be made?
I will not go through all the cuts right at this moment, but I have already said that we would not have cut £759 million from the rail budget—[Interruption.] Well, the Minister has put forward £528 million-worth of savings from the rail industry in his departmental plans, and we would not have opposed that. We would happily find the same efficiencies that he says he would find, such as the £245 million from Crossrail. We certainly agree that where there are efficiencies to be found, they should be found. I could go through his entire departmental budget, but that would detract somewhat from the debate. I am happy to do that another time.
Under Labour, there would not have been a £680 million cut in local transport funding, which is leading to a Beeching-style cull of our bus network. The Campaign for Better Transport estimates that one in five supported bus services have been scrapped. Whole communities have been left isolated, without access to public transport, and fares are rising on those services that remain. Under Labour, three quarters of local authorities would not be reviewing school transport provision, with many families being asked to pay more just to get their children to school. That increasing problem was rightly highlighted by the hon. Member for Staffordshire Moorlands (Karen Bradley) in her wide-ranging speech about the challenges facing her rural constituency. As my knowledge of Staffordshire Moorlands was previously limited to Alton Towers, I now know a lot more about it.
Time and again the Government have chosen policies that have a disproportionate impact on the very people who need their help, particularly in these austere times. My hon. Friend the Member for Sedgefield (Phil Wilson) made that point clearly and passionately. He focused in particular on the impact of bus cuts on villages in his constituency and the real problem that that is creating not only for people seeking work, but for those trying to stay in their jobs. The unemployed, 64% of whom do not have access to a car, need buses to get to interviews and jobs. How can they get back into work if there is no bus or the fare is unaffordable? What about young people, 72% of whom rely on buses to get to college? How can they stay in education or training to get the qualifications they need for the future if there is no bus or the fare is unaffordable?
Labour would be prepared to maintain investment in our much-needed bus services, but it would not be a blank cheque; we want something for something. We would reverse the cut to the bus service operators grant, but in return we would expect the bus companies to work with us to deliver a concessionary fares scheme for 16 to 18-year-olds in education or training. Many people would like to get on their bicycles because it is not only a good way to protect the environment, but a cheap way to get about. We would not only protect the road safety budget, but reallocate funding to improve cycling infrastructure and give people the confidence they need to use their bicycle.
Even for those people who do have access to a car, the situation is little better under this Government. The Chancellor’s decision to increase VAT to 20%, just when global oil prices had taken the cost of filling the tank to record levels, is a real drain on household budgets, especially in rural areas. That is why a temporary cut in VAT back down to 17.5% is a vital part of Labour’s plan for jobs and growth. It would cut the price of a tank of petrol by around £1.35 and put money into people’s pockets.
The Government claim that one of their primary objectives is to rebalance the economy, including by reducing the north-south divide. I am not sure whether Derby considers itself to be in the north—Derbyshire always feels reassuringly like the north to me—but I do not think that the Government’s claims to be rebalancing the economy away from reliance on financial services and towards manufacturing ring true with voters in Derby. The decision to award the Thameslink contract to Siemens, which will build the trains in Germany, is a real kick in the teeth for Bombardier, the only company that designs, manufactures and assembles trains in the UK. That decision put the whole future of UK train manufacturing at risk, along with thousands of highly skilled engineering jobs not only in Derby but across the midlands.
I welcome the Government’s admission that they got that wrong and their decision to amend the tendering process for Crossrail, but why, instead of spending months saying that they could do nothing about the process for Thameslink, did they not act to protect 1,400 jobs at Bombardier? Having delayed the project by a year, Ministers had the time and opportunity to restart the procurement process and ensure that wider socio-economic factors could be taken into consideration. They have proved that today.
In response to the Transport Committee’s call on the Government to explain how their policies will achieve economic growth and tackle regional disparities, the Department cites the example of HS2. There is cross-party consensus that high-speed rail is the right way to deliver greater capacity and reduce journey times between our major cities. By linking to the existing east and west coast main lines, high-speed services will serve cities including not only Manchester, Sheffield and Leeds, but Glasgow, Edinburgh, Newcastle, Liverpool, York and Durham. Once again, however, the Government have missed a trick: why are they legislating only for the first phase of the new high-speed line, from London to Birmingham, when they could have given a real boost to cities in the north by taking the whole Y route forward as one project, opening up the possibility of beginning construction in the north and the south and accelerating the benefits north of Birmingham? I hope that the Minister will respond to the pleas from his hon. Friend the Member for Manchester, Withington (Mr Leech), who asked for faster progress on HS2 to help Manchester and other northern cities.
Labour has offered to work on the same cross-party basis to tackle the urgent need for extra capacity at Britain’s airports. The Government’s failure to set out any strategy for aviation, or even a plan to do so by the end of this Parliament, is putting jobs and growth at risk across the country. Regional airports have an important role to play. The hon. Member for Stockton South (James Wharton) mentioned Durham Tees Valley airport, and I know that my hon. Friend the Member for Sedgefield has led a local campaign on behalf of the airport, so Members on both sides of the House will look forward to the Minister’s response to that call for Government support.
The campaign in the area is a cross-party campaign. We have already arranged a meeting with the Minister of State on 24 April to discuss the public service obligation and the way forward. One of the reasons why One North East did not apply for a PSO was the cost that involved, and I am concerned about asking the LEP to do that. If One North East did not have the money, I am sure that the LEP will not. I think that we need to be a little more sophisticated in how we raise money to go ahead with this.
I thank my hon. Friend for that clarification. He is quite right that one of the effects of scrapping our regional development agencies has been to make co-ordination more difficult.
The Government’s call for airports to be “better not bigger” is not a policy but a slogan, and the blanket ban on expansion in the south-east makes no sense, but that does not mean any backing down from our commitment to tackle climate change. Any new capacity must go hand in hand with tougher targets to reduce carbon emissions from aviation. I hope that the Minister will take forward that work on a cross-party basis.
Tackling climate change is not just a challenge, but a huge opportunity for British business, so it is deeply disappointing that Ministers have reversed their commitment to support the development of a national public recharging network for lower-emission vehicles, instead leaving the roll-out of recharging infrastructure entirely to the private sector. That is a real missed opportunity when such cars could and should be a growing industry.
Families throughout the country are paying the price for the global financial crisis of four years ago, and whoever was in power would have had to make tough decisions on spending, but that is why it is so important that every penny the Government spend delivers on their overall objectives, and that in turn is why Transport Ministers are failing: they simply do not have a strategy to address needs of the country. Not only are they cutting too far, too fast, but they are making the wrong decisions—the wrong decisions to create the jobs that the economy so desperately needs, the wrong decisions to get people back into work and to support young people in education and training, the wrong decisions to support British businesses, and the wrong decisions to ease the cost of living for hard-working families.
It does not have to be that way. Labour would make tough decisions—we accept that there have to be significant cuts in spending—but we would ensure that all our efforts were focused on getting the economy moving again and on getting people into work. That is the only way to cut the deficit and we would ensure that every penny spent on transport served that purpose.
I am pleased to respond to this debate, and I welcome the generally constructive comments from Members on both sides of the House. I shall try to answer as many points as I can in the 15 or so minutes allotted to me.
The coalition Government’s vision is for a transport system that boosts growth and cuts carbon. By investing in transport that links people with the workplace and goods with the marketplace, we are building a more efficient and effective transport network that is an engine for economic recovery and for creating jobs; and by investing in projects that promote green growth and help people to make more sustainable travel decisions we can help to build a more balanced, low-carbon economy that is essential for our future productivity. I stress, however, that there is not an either/or choice between building a stable and strong economy and safeguarding the environment: cutting carbon and generating growth are two sides of the same coin. Both are essential objectives that transport must deliver, and that is precisely what we are delivering.
On the question of investment, we are pleased that the Transport Committee welcomed the additional funding for transport which was announced in the autumn statement and in the growth review—and which was significantly higher than many people expected. The announcement was not only a clear demonstration of the coalition's commitment to growth, but a demonstration of our belief that improving transport infrastructure can be among the most effective ways to drive our economy forward.
The hon. Member for Nottingham South (Lilian Greenwood) spoke on behalf of the Opposition in a contribution that I found astonishing and lacking in some reality. She referred to allegedly wrong choices, but by wrong choices I wonder whether she is referring to the A453 improvement in Nottingham, the ring-road improvements in Nottingham, the station improvements in Nottingham, the tram extension in Nottingham, or the other projects that we have been taking forward throughout the country—in the north and the south—on behalf of the Government.
The hon. Lady started by saying that she would make £6 billion of spending cuts, but in fact all we had were indications of further expenditure to which the Opposition are committed: expenditure on a midland main line, on electrification to Swansea, on buses, on cycling and on road safety. It seems as if the Opposition have learned nothing. It was another charter for a great wodge of expenditure, and completely out of touch with the economic situation in which we as a nation find ourselves. It was cloud cuckoo land economics.
As I made clear in my contribution, we have identified £6 billion of cuts as set out in the Minister’s budget, with which we agree. I was talking about the areas where we would not cut but change the direction of expenditure in order to protect passengers and to stimulate economic growth and jobs. That is exactly what I set out, and I would be more than happy to discuss with him exactly where the cuts would be made.
I am delighted to hear that, because my hon. Friend the Member for Cambridge (Dr Huppert) has written to the hon. Lady’s boss, the hon. Member for Garston and Halewood (Maria Eagle), the shadow Transport Secretary, asking for details of the £6 billion of cuts, and so far no answer has been forthcoming.
Our growth review package will deliver £1 billion of new investment by Network Rail, more than £1 billion to the strategic road network and £500 million for local schemes and, in particular, for schemes that can make the earliest possible contribution to economic recovery.
We recognise that spending is one thing but that spending wisely is something else, so we are determined to ensure that every pound of public money invested in our transport system is made to count. That is why, although our rail investment programme is the largest and most ambitious since the Victorian era, we are committed to reforming the rail industry in order to reduce costs significantly and to improve efficiency. Members have today welcomed the electrification of the north trans-Pennine rail route between Manchester, York and Leeds, which is part of the northern hub project, as well as other major investment processes.
The Chair of the Transport Committee referred in her opening remarks to her view that an explicit transport strategy was missing, but with respect I do not accept that point. She made it to the Secretary of State for Transport on 19 October 2011, when my right hon. Friend gave evidence, and I refer the hon. Lady to her own question, Q16, from that session. The Transport Secretary said:
“To all intents and purposes, …what you will end up with…the aviation framework…the rail reform… the work being undertaken by Alan Cook to look at the Highways Agency”
is what will produce, certainly for the medium term, a strategy. When the Committee looks at the rail reform and aviation papers, which will both be out shortly, the Chair will see that. If she is making the point that we need to look over the longer term, say over 40 or 50 years, she is making a fair point, which the Government will take on board.
I agree, and we inherited that position from the previous Government, but I have already said that the rail reform and aviation papers are both due very shortly, and I hope that the Committee will do its usual good job of examining the documents and making comments to the Government following its analysis.
My hon. Friend the Member for Warrington South (David Mowat) was concerned about the transport business case, but my hon. Friend the Member for Wimbledon (Stephen Hammond), who is no longer in his place, made the point that we have refreshed the transport business case, and we also have the departmental plan for transport, which sets out our priorities in the short term. The transport business case does include wider aspects of economic development, which my hon. Friend the Member for Warrington South was concerned about, so the Government have now put in place a wide -ranging formula to ensure that those essential points are captured in our assessment of individual transport projects.
The hon. Member for Sedgefield (Phil Wilson) referred to declining rural bus services, a point that he had made before, but 78% of bus services are commercially run by commercial operators and are therefore not under the Government’s control, as he will appreciate. They have been affected only by the BSOG reduction, of which we gave 18 months’ notice, unlike what happened in Wales and Scotland, where bus companies were given almost no notice.
I shall make some progress, if I may.
The performance of local councils across the country varies enormously in respect of buses. If the hon. Gentleman has had significant cuts in Durham, he must consider other areas, such as East Riding and so on, where there have been far fewer cuts. Local councils have responded in rather different ways to the difficult economic situation they find themselves in, and it is not fair simply to blame the Government for that. He needs to look at his local council and at the decisions it has made in its area.
I hope the hon. Gentleman will notice that, in trying to deal with the matter, we have given money to community transport, including in Durham. I have also announced a new fund, the better bus area fund, which his local authority has indeed applied for; and the local sustainable transport fund, which is worth £560 million and includes more money for the area than the previous Government invested over the same period, has provided funding for the Wheels to Work schemes, which I mention because he made a very fair point about the importance of ensuring that there is joined-up thinking between the Departments for Transport and for Work and Pensions. I have corresponded with the Secretary of State for Work and Pensions on the matter, and the discussions are ongoing because we recognise the important link between transport and work. The hon. Gentleman made a very fair point.
On regional growth, I was disappointed that the Committee Chair quoted the IPPR’s report without question because it is incomplete and partial, as she may remember I said when I dealt with it at Transport questions a couple of sessions ago. Its figures are unreliable. Of all the transport investment announced in the Chancellor’s autumn statement and in the 14 December announcement about local major schemes, 62% by value is in the north and the midlands and 35% is in the north alone. Similarly, of the strategic highway investments announced in the 2010 spending review, 63% by value is in the north and midlands and 40% is in the north alone. The spend in the autumn statement for the local authority majors totals over £3 billion of regional spending, of which 35% is in the north-east, north-west, and Yorkshire and the Humber, 27% is in the west and east midlands, and only 24% is in London and the south-east. I therefore do not recognise or accept the figures in the IPPR report.
(12 years, 9 months ago)
Commons ChamberI agree with my hon. Friend. There is certainly a role for community transport, which is why we have provided an extra £20 million over the past few months for investment in it. We have also encouraged the bus companies themselves to recognise that there is a potential future market in the age group in question.
Earlier this month, Barnardo’s revealed research showing the hardship experienced by young people trying to stay on in education. Its chief executive, Anne Marie Carrie, said that it was
“an absolute disgrace that some students are now being forced to skip meals in order to afford the bus to college.”
Bus companies tell us that, as a result of the Minister’s cuts to the bus service operators grant, they cannot afford to offer a concessionary fare scheme for those students. Will he now review the decision to cut BSOG, to provide affordable transport for those young people?
(12 years, 10 months ago)
Commons ChamberMany 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.
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.
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.
We have heard this afternoon exactly how the cost-of-living crisis is hitting households up and down the country. My hon. Friend the Member for Bolton West (Julie Hilling) described the devastating circumstances faced by some of her constituents. This debate is not about point scoring. It is about the lives of the people whom we represent—the people who went back to work after the Christmas holidays and suddenly found that they had to pay almost 11% more to catch the train. As my hon. Friend the Member for Pontypridd (Owen Smith) noted, passengers travelling from Cardiff to London face increases of 9.7%. My hon. Friend the Member for Plymouth, Moor View (Alison Seabeck) highlighted the frightening cost of fares to and from the south-west.
As usual, there were plenty of warm words from the hon. Member for Cambridge (Dr Huppert), but I remind him that his party is part of this Government and their policy is to increase fares in this Parliament by RPI plus 3%.
I will not give way at the moment.
We have heard about shoppers finding that they have less to spend when they get to the shops or the market because bus fares have gone up, about small businesses struggling with the high cost of petrol, and about mums and dads having to find more money from the family budget to help teenage sons and daughters pay to travel to college because they have lost their education maintenance allowance and the fare concessions they used to get have been cut. Parents are having to get the car out to take their children to school, even if they cannot really afford to, because school transport has been cut. As has been said, that does nothing to contribute to the green agenda.
The cost of living crisis is hitting hardest those who are least able to withstand it and is made worse by the decisions that the Government have made, which show that they are out of touch with the concerns of ordinary families. When so many people are struggling to pay their bills and make ends meet, only a Government who are completely out of touch with these concerns would allow inflation-busting increases in rail fares, yet that is exactly what this Government have done. They were forced to back down on their original plan to increase rail fares by inflation plus 3% this year, but passengers will still face those rises in January 2013 and January 2014.
When passengers heard the Chancellor’s autumn statement, they understandably expected that the most they would have to pay this year was an extra 1% above inflation, but they soon found that they were wrong, because the Government gave private train companies the right to increase some tickets by an additional 5%, something that Labour banned in government precisely because we understood the pressures commuters face in tough economic times.
At the start of the debate the hon. Member for Garston and Halewood (Maria Eagle) made a spending commitment to keep fares down. Will the hon. Lady tell us where the money for that would come from and, assuming she does not wish to increase the national debt, what she would cut to fund that commitment?
I am not making any spending commitments this afternoon. The real question needs to be addressed by the Minister, which she might do when summing up. She needs to address the point, made by the National Audit Office, that rather than protecting taxpayers or paying for the investment described by the hon. Member for Milton Keynes South (Iain Stewart), the flexibility will boost the profits of train operating companies. How will she tackle that?
As my hon. Friend the Member for Glasgow South (Mr Harris) rightly said, rail services flourished under Labour, with more services, more passengers and better punctuality than ever before. He also noted that Lord Adonis stood up to train operators and removed this flex. Lord Adonis stated in evidence to the Transport Committee:
“In a time of economic stringency I do not think it acceptable for individual commuters to face significantly above-average fare increases. The Government’s intention is, therefore, that in future the cap should apply to individual regulated fares, not just to the average of each fares basket.”
He said “in future” and nothing about it being for one year.
The Prime Minister might say that he wants to tackle crony capitalism, but actions speak louder than words. His Government have shown that they are on the side of private train operators, rather than passengers, letting them increase some fares by as much as 11% with no guarantee that the money will lead to a better deal for taxpayers. As I have said, the NAO has warned that that could simply result in higher profits for train companies. The Government also know how difficult it is for passengers to navigate their way around complex fare structures to find the cheapest tickets, but they will not rule out getting rid of the very ticket office staff who can help and advise people, particularly those who are unable to find the best offers online or by using a ticket machine.
If things are bad for rail users this January, bus users might say, “Look at the year we’ve already had.” The Transport Committee called the 2010 comprehensive spending review
“the greatest financial challenge for the English bus industry for a generation”.
Alongside rising fuel prices and a depressed economy, many bus operators have had no option but to raise fares, cut services or both. What have the Government done to help bus users, many of whom are among the least well-off in society? They have cut transport funding to local councils by 28%, a loss of £95 million in 2011-12 alone. They have changed the way in which the concessionary fares scheme is funded, taking a further £223 million away from local authorities in the past year, and they have decided to cut the bus service operators grant, the fuel rebate to bus companies, by 20% from April.
If we add those changes together, we find that the result is devastating. Fares are going up, one in five supported bus services has been scrapped and the Campaign for Better Transport has collected examples of more than 1,100 bus services that have already been lost in the English regions. Whole communities have been left isolated without access to public transport, and almost three quarters of local authorities have been forced to cut or to review school transport provision.
Older people, who are protected from fare rises, having benefited enormously from the free bus pass introduced by the previous Labour Government, are finding additional restrictions on when they can travel and, particularly in rural areas, that the service they relied on has disappeared. The Prime Minister may have promised to keep the free bus pass, but it is of little use if people have no local bus to travel on.
Time and again we see this Government choosing to implement policies that have a disproportionate impact on the very people who most need to be protected in harsh economic times: older people and disabled people, who often do not have the choice to use a car; and the unemployed, who are already paying the price of this Government's economic failure. Some 64% of those seeking work do not have a access to a car, so they rely on buses to get to interviews and jobs. As my hon. Friend the Member for Lewisham East (Heidi Alexander) said, how will they access job opportunities or stay in work without public transport and how can work pay if travel to work is not affordable?
We heard about young people, 72% of whom rely on buses to get to college and to give them independence. They are already struggling without their education maintenance allowance, or are facing a threefold increase in tuition fees, so it is little wonder that colleges report a fall in admissions, and that the UK Youth Parliament made cheaper, fairer and more accessible public transport its No. 1 issue for 2012.
For the one in 10 people in rural areas who do not have access to a private car, a bus is essential to get to the nearest shop, doctor or post office—not that car users have done much better. For all the Government’s talk of fuel stabilisers in opposition, one of their first acts was to increase VAT to 20%—immediately putting petrol prices up by 3p a litre and adding an extra £1.35 to the cost of filling up the average car.
The Government claim that those changes are all in the name of deficit reduction and that there is no alternative. That is not so. What is required is the determination to stand up to vested interests and to powerful lobby groups. We have already set out how we would ease the pressure on households from the rising costs of transport—not by increasing spending, but by banning private train companies from averaging out the cap on fare rises. That would mean a maximum increase of inflation plus 1% this year, not increases of up to 11%.
My hon. Friend the Member for Garston and Halewood (Maria Eagle) also set out how we are considering other options to ensure that passengers are protected from unfair pricing, including a single definition of peak and off-peak; a right to the cheapest ticket; a right to a single price for the same ticket; a more flexible way of changing one’s travel plans; and a right to a discount when a rail replacement bus service is put on.
Labour’s policy review is looking at all options for reforming the structure of Britain’s rail industry. We need root-and-branch reform of its costly fragmented structure, and we need a better deal for taxpayers and passengers. We also want to devolve more transport responsibilities, so that more decisions are made locally by integrated transport authorities with powers to deliver local bus services in a way that best suits each community, ensuring that the needs of local people are met and that fares are affordable. For young people who are aged 16 to 18 and in education, we want to see a concessionary fares scheme delivered by the major bus companies in return for the subsidies that they have received.
In the transport spending review, the Government recognised:
“Transport provides the crucial links that allow people and businesses to prosper”.
Well, people and businesses are suffering as a result of their poor decisions. Yesterday, we, like the hon. Member for Fylde (Mark Menzies), welcomed the good news about High Speed 2 and the Government’s commitment to long-term investment in our infrastructure, but they must face up to the here and now. They need to listen to passengers and start taking action to tackle the quiet crisis facing people the length and breadth of this country.
The former rail Minister has made my point for me. The Opposition must be suffering from collective amnesia if they think that this problem suddenly appeared in May 2010 when the coalition took over. In 2006, a Labour-dominated Select Committee described the Labour Government as “breathtakingly complacent” on value for money in fares. The truth is that concern about rail fares has been growing for years, as my hon. Friends the Members for Bexleyheath and Crayford (Mr Evennett), for St Albans (Mrs Main) and for Milton Keynes South have said.
A major reason for the increases is that under Labour the cost of running the railways spiralled and hard-pressed passengers and taxpayers were left to foot the bill. It is fair that passengers contribute to the cost of running the railways and to the massive programme of upgrades that we are taking forward, but neither fare payers nor taxpayers should have to pay for industry inefficiency. This Government understand how vital it is to get the cost of running the railways down and to tackle the legacy of inefficiency that we inherited from Labour. That is the long-term, sustainable solution to delivering better value for money for taxpayers and fare payers.
The point that we are seeking to make is that when the Government say that fares will go up by inflation plus 1%, that is what they should go up by, not by up to 11%, which is what many people face this year as a result of the Government’s decisions.
(12 years, 11 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
It is a pleasure to speak under your chairmanship, Sir Alan. I begin by congratulating the hon. Member for Truro and Falmouth (Sarah Newton) on securing the debate and on setting out so clearly the needs of local people and businesses in the south-west.
The debate is very timely, given yesterday’s issuing of the invitation to tender for the Great Western rail passenger franchise. It may be a coincidence that that was published on the eve of the debate, but if not, I congratulate the hon. Lady on prompting Ministers to get at least that part of their franchise programme on track.
I am sure that the Minister has listened carefully to the concerns of hon. Members on both sides of the House who are here to represent constituencies right along the route in relation to the new franchise. I shall pick out just a few of the key points that they made. They talked about ensuring that the baseline for the new franchise is no less than the current service, the need for fares to be affordable, the need for faster services, especially for the benefit of business passengers—the south-west region depends on businesses for economic growth—the importance of a link to Heathrow airport, the vital importance of tackling overcrowding, and the retention of a sleeper service to Cornwall. I hope that the Minister will be able to provide some assurances on each of those points.
Several Members welcomed the opportunity to provide long-term investment, but that surely requires a degree of certainty. It is therefore of great concern that invitations to tender for franchises are being issued before the Government have decided what their franchising policy is. The First Great Western franchise ITT states:
“The contract will be based on the Franchise Agreement currently being revised in line with Government policy.”
It would surely have been sensible to finalise the franchising policy and the franchise agreement in time for the publication of the invitations to tender.
Unfortunately, it is not just the franchise agreement that is yet to be finalised by Ministers; the entire rail strategy is now running late. The departmental plan promised to:
“Develop and publish detailed proposals on delivering a sustainable railway including reform of Network Rail”,
but that, along with so much else, has slipped back to 2012. It seems that the Secretary of State inherited an in-tray overflowing with decisions her predecessor had sat on. Given yesterday’s determination by the Office of Rail Regulation that Network Rail is in breach of its licence because of the worsening performance on the national network, passengers are right to be frustrated that there is no sign of the promised reform.
As the process of renewing the franchises begins, we are left with more questions than answers. For example, we are no nearer knowing how committed Ministers are to rail devolution, and neither are prospective bidders. The ITT says:
“In line with the Government’s aspiration for decentralisation, the franchise may be let so as to permit future changes in the way that discrete parts of the network”—
I feel obliged to correct the hon. Lady. We have not issued an ITT for First Great Western yet. The ITT comes after the consultation. If we issue the ITT before the consultation, we are unable to take on board the views of stakeholders. I am not sure what ITT the hon. Lady is reading from, but it is not First Great Western’s.
I thank the Minister for her clarification, but it is the information that was published yesterday in relation to the future franchise.
The publication the Minister produced mentions
“changes in the way that discrete parts of the network are financed, monitored and managed by organisations other than the DfT.”
The Opposition support rail devolution, which should go hand in hand with stronger transport authorities. We would like parts of the country such as the south-west, which do not currently have the benefit of integrated transport authorities, to have them. That would give the constituents of hon. Members who are here today more control and the opportunity to ensure that their needs are met. Could the Minister therefore update us on progress on rail devolution? What plans does she have for the devolution of services in the south-west? Will she confirm that devolution relates to funds and not just responsibilities? In parts of the country such as the south-west, which do not have an integrated transport authority, who, other than the DFT, does she envisage will be the relevant organisations?
The Department is similarly vague on the eventual reforms to cost and revenue risk, saying only:
“Revenue risk will be subject to a support mechanism probably linked to economic factors”,
but “probably” seems a bit vague for this stage in the process. Will the Minster therefore provide further details of how she intends to ensure that taxpayers get a fair deal from the new franchise and that we do not have a repeat of the licences to print money we have seen in recent years?
The Opposition have been highly critical of the way in which First Great Western has been able to end its 10-year franchise three years early—before the Minister jumps to her feet again, let me say that I appreciate the fact that the contract was agreed under the previous Government. I hope this Government have learned the lessons from the franchises that were signed in the years following privatisation so that contracts do not back-load premium payments while allowing a break clause. That has enabled First Great Western to avoid payments of an estimated £826 million, while, as now looks likely, bidding to run the franchise again.
There are also questions about what is to happen to the stations on the First Great Western line, and several Members have raised particular concerns. The invitation that has been issued states:
“The franchisee will be expected to take full repairing leases on some or all of the stations that it operates other than on Network Rail managed stations.”
Why is there the reference to
“some or all of the stations”
and what will happen to the others? If a private train operator takes control of stations, will that be within the 15-year franchise, or on the basis of 99-year leases, as Ministers have suggested? If it is within the 15-year franchise, what will happen at the end of the 15-year period? If the franchise changes hands in 15 years, one possibility is that there will have to be a significant payment to the outgoing train operating company, thereby skewing the refranchising in its favour, or are Ministers opening up the prospect of an operating company retaining the management of the stations even after losing the franchise to operate the trains? Potentially, we could see station access charges as well as track access charges, with yet more work for lawyers, more fragmentation and more cost to the taxpayer.
There are also questions about the trains to be used on the First Great Western line under the new franchise. The document says:
“It is currently expected that the franchise operator will take responsibility for the provision of rolling stock. From 2017 new Intercity Express Trains (‘IEP’) are anticipated to be delivered to the franchise operator”.
Will the Minister explain why it is only “expected” that the new franchise holder will be responsible for rolling stock? Will she confirm that the Department cannot force the new operator to lease the IEP trains? Given the Department’s admission that the leasing costs for the IEP trains will be greater than for the alternatives, what assurances can she provide that the IEP trains will actually be put into service? Will she give more details about the discussions First Great Western, and indeed East Coast, are reported to have had with rolling stock companies about potentially using more Pendolinos on these franchises, as opposed to the IEP trains being built by Hitachi? It is incredible that the taxpayer has spent tens of millions of pounds developing these new trains, on which jobs in the north-east depend, when responsibility for leasing trains rests with the private operators. As several Members have said, it is vital that the new franchise increases capacity to tackle overcrowding, rather than pricing passengers off the railways. The hon. Member for South East Cornwall (Sheryll Murray) graphically described the problems of overcrowding on inadequate train carriages. It is therefore vital that we know what rolling stock is to be delivered.
Potential operators of the new franchise are also having to bid without the Government’s having decided how best to address the clear need to improve links to Heathrow and High Speed 2—if the Government decide, as we hope they do, to give HS2 the green light. As the document says:
“Options for longer term enhancements of rail links to Heathrow, such as Western Access and Airtrack Lite, are being considered”.
Whether they go ahead will have a significant bearing on the franchise. Will the Minister provide an update on the Government’s thinking on the issue, particularly given that several Members, including my hon. Friend the Member for Plymouth, Moor View (Alison Seabeck) and the hon. Members for Plymouth, Sutton and Devonport (Oliver Colvile) and for South East Cornwall have highlighted the loss of Plymouth airport and, therefore, the importance of establishing such connections?
As hon. Members know, the Opposition have put forward their own proposal, which would offer the south-west significant benefits in terms of access to Heathrow and HS2. Our policy review concluded that we were wrong to reject the proposal to create a major new transport hub near Heathrow linking HS2, Crossrail and the First Great Western main line. We have proposed moving the west of London stop from Old Oak Common to near Heathrow. That was previously the Conservative party’s policy, and it was backed at the time by the Minister. Indeed, some tell us—quite authoritatively—that she may still hold that view.
As the Minister will know, the creation of a Heathrow hub has several benefits. First, it has the potential to save taxpayers money, by removing the need to build an expensive spur to Heathrow during the later stages of the HS2 project and opening up the potential for greater private investment in the scheme. Secondly, it will benefit Heathrow by improving access to our major hub airport, especially from the south-west. Thirdly, it will increase the potential for more of the country to feel the benefits of HS2, not least by improving connectivity to the south, the south-west and Wales. HS2 will benefit the nation as a whole, but those living in parts of the country that are not directly served by it need to feel that those benefits are real to them. Fourthly, taking the high-speed line direct to Heathrow from the start will inevitably change the route and open up the prospect of making greater use of existing transport corridors and avoiding the widest part of the Chilterns area of outstanding natural beauty.
The debate gives the Minister a timely opportunity to provide clarification on the many questions that need answering regarding the Government’s rail franchising policy and particularly the tender for the First Great Western franchise. Passengers in the south-west need and expect a better rail service than the one they have at present. With six of the 10 most overcrowded services running out of Paddington station, there is a considerable need for the investment the Labour Government set in motion, not least for the further electrification of the First Great Western main line.
As well as investing in infrastructure, we need to improve the way passenger services are delivered. The Opposition are clear that that requires the genuine devolution of rail services and a fundamental review of the very structure of our rail industry. Given that the Government look set to maintain the existing industry model, we need, at the very least, to have tough new rules for rail franchises. We need to ensure that the often poor quality of service experienced by rail passengers in the south-west, which Members have described today, is not repeated in the future.
(12 years, 11 months ago)
Commons ChamberWith respect, I should not know what happens on every single train across the country, because we are now moving into an era in which we avoid micro-management of the trains. We are setting the high-level objectives; we are not seeking to micro-manage every train, let alone every passenger on the network. However, as a general principle, it is right that train companies should try to minimise ticketless travel by whatever means they can; indeed, it is in their interests to do so. As to whether a cost-benefit analysis has been carried out to see whether such measures are more effective, to be honest, I am not sure that one has been, although I will check that and write to the hon. Gentleman.
What I would say, however, is that the problem is a bit like when the police stop drivers speeding: when the police are there, they are effective, both at the time and for about a week afterwards, but then the average speed of the motor vehicles on those roads rises again. A gating solution is a permanent solution; a solution involving people, unless they are permanently there, is not a permanent solution and is less effective than gating. However, I will write to the hon. Gentleman about the point that he has raised.
But the Minister has said that gates have to be staffed. In fact, my experience of East Midlands Trains—not in Sheffield, but in Nottingham—is that gates are regularly unstaffed, so they are doing nothing to prevent fare evasion.
If a train company operates gates without regularly staffing them, that will lead to a loss of income, and it is responsible for dealing with that. However, travelling the network extensively as I do, I do not often come across gates that have been left open.
East Midlands Trains, along with Midland Mainline before it, has undertaken manual staffed barriers of ticket inspectors on selective days to ensure that all passengers passing through Sheffield station are in possession of a valid ticket—perhaps those were the instances to which the hon. Member for Sheffield Central referred in his introductory remarks. The increased revenue collected at the station on those days, both by the inspectors and through increased sales at the ticket office, indicates that between 3% and 18% of travel at Sheffield is ticketless—that is where the figure comes from. That means that at least £2.3 million is lost to the railway each year through ticketless travel in the area. I want to deal with that, but I also want to deal with the point that the hon. Gentleman raised—quite understandably—about the views of people in Sheffield and those who perhaps do not want to travel by train, but do want to use the bridge.
I hope that the hon. Gentleman is aware that the station bridge in Sheffield to which he referred is not a right of way. It may be an established route in a non-legal sense, but it is not an official right of way. In fact, he will know that the bridge is locked shut every night after the last train, presumably to prevent it from becoming a right of way. However, I know that for many people—including students, residents and visitors—it has become the most convenient thoroughfare for crossing the railway. I also accept the point about access to the tram stop. As I am keen to promote light rail and low-carbon forms of transport, that is a point that I take seriously. However, although the bridge is not a right of way, I understand that Sheffield council has promoted it as part of the “gold route” access strategy for its redevelopment of the Park Hill area on the east side of the city.
I agree with the hon. Gentleman that it is important to try to ensure that, through the installation of gates—if that is what occurs—the railway does not cut a community in two, and that the community is provided with a satisfactory and easy way of gaining access across the railway. We therefore looked at a number of options, including: the refurbishment of the existing public bridge to the south of the station; the refurbishment and extension of the station goods bridge; dividing the current station bridge to provide separate lanes for railway passengers and public access across the station, which is a solution that I was particularly keen on; building a new bridge at the north end of the station platforms; and building a new bridge crossing over the railway tunnels at the north end of the station. As the hon. Gentleman will be aware, in 2009 the Department for Transport commissioned Network Rail to undertake a feasibility study to look into those options. The report has previously been released to Sheffield city council and the South Yorkshire passenger transport executive. As he requested on 17 November, I have also sent him a copy of the report.
The report recommended that the options of extending the station goods bridge and of trying to split the existing station bridge be discarded, as they were both impracticable and excessively complicated. The report recommended further investigation of the remaining options. We have explored those options at some length, and both my right hon. Friend the Member for Runnymede and Weybridge (Mr Hammond), the then Transport Secretary, and I have visited Sheffield station separately to look at them for ourselves.
In answer to the point about Lord Adonis, I must say that he was a very competent Transport Secretary—and I never hesitate to say that.
(13 years ago)
Commons ChamberI am happy to say that the local sustainable transport fund has been a success, providing £560 million, which is more money in the four-year period than the previous Government provided. Every single qualifying council that could have bid for money has done so. Tranche 1 is out of the door—£155 million already—and tranche 2 bids are due in shortly, as are the larger bids. As part of the growth review, the Government are looking to see what we can do to boost transport further.
Last week, the UK Youth Parliament voted transport costs its No. 1 issue, while the Association of Colleges has warned that falling student numbers are being
“exacerbated by the number of local authorities who have cut back or axed their student travel subsidies.”
Will he now wake up to the devastating impact his 28% cut to local transport funding is having on young people, particularly in rural areas?
I am conscious of the concerns of young people because I invited some to give a presentation at the most recent bus forum that I hosted, which was attended by the major operators and local authorities. I have subsequently written to the bus companies and involved the local authorities to try to get some action to help people of that age with their particular needs for public transport access. This issue is very much on the Government’s radar.
(13 years, 1 month ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
It is a pleasure to speak under your chairmanship, Mr Robertson, particularly as this is my first time speaking from the Front Bench. I congratulate my hon. Friend the Member for Wigan (Lisa Nandy) on securing the debate. As ever, she spoke with great passion on behalf of those in society whose voices are too often unheard or ignored. She painted a very clear picture of the difficulties, indignities and anxieties that disabled people face in trying to travel on public transport and feel safe. It is clear from the number of people here today to listen to the debate and from the number of hon. Members from every part of the UK who have participated that there is a collective, cross-party will to tackle that inequality.
The hon. Member for Blackpool North and Cleveleys (Paul Maynard) also spoke with passion, and this place is richer for his being here and speaking with the real understanding that comes from personal experience. Among the many issues that he raised, what struck me was the importance of changing attitudes. That is difficult and we cannot legislate for it, but I want to hear from the Minister what the Government are doing to ensure that staff are aware of and trained to respond to the needs of disabled passengers, so that they do not face the same bitter experiences that my hon. Friend the Member for Birmingham, Erdington (Jack Dromey) described, which he had heard about from his constituents.
My hon. Friend the Member for Edinburgh North and Leith (Mark Lazarowicz) made important points about the practical steps that can be taken to improve accessibility and rightly pointed out that this is about not just buses, trams and trains, but airports and taxis. My hon. Friend the Member for Islington North (Jeremy Corbyn) reminded us that 60% of disabled people have no access to a car and spelled out both the progress made and the challenges that remain here in London. The hon. Member for Cambridge (Dr Huppert) rightly highlighted the needs of people with hidden disabilities, such as autism or learning difficulties.
We would all agree that good public transport is vital to disabled people and their families. It provides access to education, employment, health care, sports, leisure and volunteering opportunities. It enables disabled people to live independent lives. It helps to combat social isolation. Using public transport empowers disabled people, allowing them to develop self-confidence and skills.
The previous Labour Government made huge strides forward in improving public transport, including by making it more accessible for disabled people. However, there is clearly more to do. As we have heard today, disabled people still cannot access the services that many of us take for granted, but during the 13 years of Labour government the UK saw spending on rail that was almost two and a half times higher than we inherited. The creation of Network Rail brought significant modernisation of lines and stations, and a programme of replacing the ageing train fleet began, with 4,800 new accessible train carriages built since 1999.
Labour also significantly increased the support for local transport services, with investment more than doubling on our watch, including improvements here in London to buses and the tube, as we have already heard. Local bus services saw investment rise by almost 300%, and across the country bus fleets were modernised, often incorporating features to make them more accessible.
The Rail Vehicle Accessibility Regulations 1998 and the Public Service Vehicle Accessibility Regulations 2000 made a number of changes to make using public transport easier and safer for disabled people. The majority of buses now have handrails and wheelchair spaces. All new tram and train carriages must be accessible, and there is a requirement for audio-visual systems—vital improvements for disabled people, but benefiting everyone else, too.
Parents with pushchairs find it easier to get on a bus because it has a low floor and a space for the pram. They no longer have to struggle to fold a buggy while holding a toddler and bags of shopping; I speak from experience. Visitors feel more confident in using the train and tram because there is a display showing where they are and what the final destination is. I cannot resist an example from my own city. It is reassuring to hear Wendy Smith, the voice of Nottingham’s tram, tell someone what the next stop is when it is dark outside or pouring with rain, or when the tram is crowded.
In 2005, the Department for Transport began trials of on-board audio and visual passenger information systems, with a view to amending the 2000 regulations to make such equipment mandatory if the trials prove successful. We need to ensure that that research progresses, and I ask the Minister to set out clearly what his Department is doing to extend such provision across the bus network. As my hon. Friend the Member for Wigan said, under the 1998 regulations, all trams and trains must be fully accessible by 1 January 2020. What is the Department doing to ensure that train companies meet that deadline?
Unfortunately, the progress achieved under Labour is now under threat as a result of this Government’s reckless deficit reduction plans. We recognise that transport spending needs to be reduced, even though that means making difficult and unpopular decisions, but the Government are going too far and too fast, with serious consequences. Funding for local transport will be reduced by 26% by 2015—over a quarter of the budget gone. With ring-fencing removed and local authorities under pressure, transport spending could even be lower. Worryingly, the Financial Times reported today that Campaign for Better Transport has uncovered the fact that English regions have already lost more than 1,000 bus services—over a fifth of all those supported by local authority funding. Funding for the concessionary fare scheme has already been cut by £223 million, and the bus service operators’ grant will be cut by £254 million by 2013.
Overall, the Government are taking away half a billion pounds from local transport funding, causing unaffordable fare rises and the closure of routes, which will hit everyone in our communities. Disabled people, who are often on low incomes and especially reliant on public transport, will be hit even harder. The scheme that provides half-price coach travel will be wiped out a stroke at the end of this month, putting long-distance travel out of reach for many pensioners and disabled people, and threatening some routes.
In many areas, school transport, which is particularly important for disabled children and young people, is being cut or removed, hitting family budgets and excluding disabled youngsters from after-school activities such as sports, drama and music. That comes on top of the removal of education maintenance allowance and a threefold hike in tuition fees. No wonder so many young people feel that they are being priced out of opportunity.
Quite rightly, many hon. Members have focused on the need for physical changes to public transport vehicles to make them more accessible to disabled people, but such changes will simply be irrelevant if the services that people need are not running, or if disabled people cannot afford to travel on them. Families up and down the country, including those of the disabled, face a cost-of-living crisis. Household bills are going up as a result of rising prices, wages are stagnant for those in work and many people face unemployment, including nearly 1 million young people, as today’s figures show. They have to rely on benefits, which are not keeping pace with inflation. How on earth will they cope with the 28% increase in rail fares planned for the next three years?
Disabled people face the additional worry that scrapping disability living allowance and replacing it with the personal independence payment might mean that they lose the help that they have been receiving with the extra costs of mobility. That fear is particularly acute for disabled people in residential care, including young people living in residential schools and colleges. As it stands, the Welfare Reform Bill will remove the mobility component of PIP from those young people, even though there is no evidence of the double funding that the Government claim. What discussions has the Minister had with his colleagues in the Department for Work and Pensions about their internal review of those proposals? Will he update us on their progress?
Disabled people already face barriers to their inclusion and participation in society. The Government should be on their side, breaking down those barriers, not building them even higher. How will the Minister do that? What assessment has his Department made of the impact on disabled people’s access to public transport, particularly that of young disabled people, of his 26% local transport funding cut? Will his Government’s decision to increase rail fares by 3% above inflation for the next three years have a disproportionate impact on disabled people? If so, how will he militate against it? Has he assessed how the loss of ticket-office staff will affect disabled passengers and what are his conclusions?
As the Disabled Persons Transport Advisory Committee goes up in smoke as part of the bonfire of the quangos, how will the Minister ensure that disabled people, including young disabled people, are properly consulted on decisions that can have a profound impact on their lives? As we have heard today, disabled access to public transport is an issue in constituencies across the country. He needs to explain why disabled people are being asked to bear the brunt of his Department’s spending cuts.
(13 years, 2 months ago)
Commons ChamberI agree that the initiatives in south Gloucestershire have been successful, and I congratulate my hon. Friend on his inventiveness and ingenuity in including that question under this heading. He will understand that the project he mentions is subject to assessment under the development pool arrangements. A decision will be made later this year, but his support for the scheme is noted.
CTC reports that the biggest deterrent to cycling is fear of busy roads. What are the Government doing to improve driver training and put more emphasis on cyclists’ needs? How can the Minister ensure that dangerous or intimidating driving is made as unacceptable as drink driving?
Dangerous and intimidating driving is already subject to police enforcement, but we are taking steps to ensure that drivers are aware of cyclists on the road. A Trixi mirror pilot has been approved for London, and it is now in place and showing good results. The Under-Secretary with responsibility for road safety is very aware of this issue and is looking at driving training for HGV drivers in particular.
(13 years, 5 months ago)
Commons ChamberAbsolutely. My hon. Friend makes the point very clearly. I believe that it is not possible for Britain to maintain its prosperity in the 21st century in an increasingly competitive global economy unless we can close the growth gap between north and south. Governments for the past 50 or 60 years have wrestled with this challenge and we have not succeeded yet. This approach of investing in strategic infrastructure is the last best chance to achieve that.
Does the Secretary of State share my view that developing the eastern leg of the “Y”, which will link the great core cities of Nottingham, Sheffield and Leeds, has a very strong business case and should be prioritised?
I agree that it has a very strong business case and it will be part of the “Y” network, but the logic of building this project is that we have to do the complex engineering challenge of getting out of London through tunnels—the difficult bit of the project—first. In engineering terms, once we are out of the tunnels, it is pretty much plain sailing to complete the remainder of the construction.
(13 years, 11 months ago)
Commons ChamberThere is £11 million for Bikeability in this financial year, which is available to local highways authorities and school sport partnerships. Bikeability funding will continue for the rest of the Parliament, as we have indicated. We are funding 275,000 Bikeability level 2 training places for children this year and a further £500,000 is available in bursaries for the training of cycling instructors. It is clear that our commitment to cycling is undimmed and that we have a plan in place to deliver on that.
5. What recent discussions he has had with local authority leaders on the future of funding for major local authority transport schemes.
Officials have written to all relevant local authorities, enclosing the document “Investment in Local Major Transport Schemes”, which was made available to Members of this House on 26 October and which sets out the position on the future funding of major schemes. Detailed discussions are ongoing.
In the longer term, I have made a commitment to consider the options for a much greater devolution of capital budgets and prioritisation decisions for local major schemes and will in due course discuss the best way forward with local authorities and local enterprise partnerships once they are established.
I thank the Secretary of State for that answer. As he knows, there is deep concern about the decision to postpone improvements to the A453 in Nottinghamshire. There is an appetite locally, across all parties, for exploring ways to retrieve the situation, and it has been suggested that a regional growth fund bid could be made to contribute to the cost. Would the Secretary of State welcome such an approach? Will he facilitate the participation of the Highways Agency in assisting local partners to explore such a possibility?
As the hon. Lady knows, the A453 is a Highways Agency scheme and not, strictly speaking, a local authority major scheme. It is not the kind of scheme that was primarily intended to be a beneficiary of the regional growth fund.
I have written to the hon. Lady on this subject and indicated that we will be looking at Highways Agency schemes that are not currently prioritised for commencement in this spending review period, with a view to identifying those that will be accelerated as first reserves, as it were; inevitably, programmes sometimes slip and there is a requirement for additional schemes. We will be looking at that in the new year.