Oral Answers to Questions

Lord Hammond of Runnymede Excerpts

Thursday 17th June 2010 Commons Chamber

[The Secretary of State for Transport (Mr Philip Hammond)]

I have not discussed the expansion of Heathrow with business representatives since my appointment, as we have made it clear that we will not support a third runway at Heathrow. This Government’s focus is on making Heathrow better not bigger.

[Mr Hanson]

I welcome the Secretary of State to his position. I do not always agree with the CBI, but it has joined the Trades Union Congress and unions across London to say that the expansion of Heathrow is good for business and for London. Will the right hon. Gentleman therefore be careful that, in taking his stance—I recognise that it is one of integrity—he does not end up exporting jobs and business from London to Munich, Frankfurt and Paris?

[Mr Hammond]

As the right hon. Gentleman knows, both parties in the coalition campaigned before the general election on a clear commitment to scrap the third runway at Heathrow. However, we are not anti-aviation and, earlier this week, I set up a working group to consider aviation in the south-east and to work with all the stakeholders, including representatives of business, the airlines and people who work at the airport to ascertain how we can make aviation in the south-east work better within the constraints of existing runway capacity.

[Angie Bray (Ealing Central and Acton) (Con)]

The people of Ealing Central and Acton were delighted by the decision to scrap the third runway. Does my right hon. Friend agree that if the third runway had gone ahead, it would have imposed intolerable extra blight on those who live in west London?

[Mr Hammond]

My hon. Friend is absolutely right. When considering airport expansion, we must look at not only the economic benefits but the local environmental burdens and the impact on this Government’s and the previous Government’s commitments to CO₂ reduction.

[Jim Fitzpatrick (Poplar and Limehouse) (Lab)]

I, too, welcome the Secretary of State to his new position. I also welcome his comments about undertaking a review of aviation policy in the south-east because that suggests that the economic case has not been forgotten. Does he agree that, as my right hon. Friend the Member for Delyn (Mr Hanson) said, when there is spare capacity in Paris, Schiphol and Frankfurt, and Dubai has built six runways, we run the risk of being disadvantaged not only by the rest of Europe, but by being bypassed by planes flying straight to the Americas from Asia through Dubai?

[Mr Hammond]

Heathrow is Britain’s premier hub airport and we intend to ensure that it remains a major hub airport. We want to work with business and other stakeholders to ensure that Heathrow becomes better, not bigger, and that we protect its status.

[Mr John Whittingdale (Maldon) (Con)]

2. If he will take steps to reduce congestion at the Dartford crossing.

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[Andrew George (St Ives) (LD)]

6. What assessment has been made of the effects on front-line transport services of the announced expenditure reductions for his Department in 2010-11.

[The Secretary of State for Transport (Mr Philip Hammond)]

I can reassure my hon. Friend that this Government take protecting front-line services very seriously. However, we also take very seriously the need to deal with the unsustainable structural deficit we inherited. The Department for Transport is focusing on making its contribution to deficit reduction while supporting economic recovery and protecting priority areas.

[Andrew George]

Notwithstanding that answer, is the Secretary of State aware that the suspension of major schemes has meant that the Maritime and Coastguard Agency may not provide the Isles of Scilly ferry service with the necessary authority to continue? As the service has been 10 years in preparation, is 99% ready to go and is a lifeline for the Isles of Scilly, will he reconsider this issue?

[Mr Hammond]

Perhaps I can clarify what I have done. This scheme has conditional approval, and we have said that schemes with conditional approval or programme entry will have to await the outcome of the spending review before we can confirm them. My understanding is that Cornwall county council is still awaiting listed building consent, without which the scheme could not proceed anyway, but we are aware of the vital nature of the link to the Isles of Scilly and we will review the scheme as soon as the spending review has been completed.

[Mrs Louise Ellman (Liverpool, Riverside) (Lab/Co-op)]

I congratulate the right hon. Gentleman on his appointment.

Two days ago in the other place, Lord Attlee stated that rail electrification could not be afforded. Does that mean that the Government reject the notion that investment in transport is essential to support economic recovery?

[Mr Hammond]

The Government are committed to rail electrification because of its carbon impact. However, as the hon. Lady will be aware, we have inherited a massive black hole in the public finances—[Interruption.] Labour Members can laugh, but the previous Government announced a halving of the public capital investment programme without giving any indication of where that cut would come. After the spending review, we will have to look at all these programmes in the light of their affordability and the urgent need to reduce the fiscal deficit.

[Mr Rob Wilson (Reading East) (Con)]

Will my right hon. Friend meet me and a delegation from Reading borough council to discuss the continued funding of proposed transport changes that his announcement last week suggested might be suspended?

[Mr Hammond]

The only announcement that I made last week that affects the Reading scheme was about a local authority scheme for highway improvements around Reading station. That scheme will be reviewed following the outcome of the spending review, and my hon. Friend will learn the outcome in due course.

[Sadiq Khan (Tooting) (Lab)]

May I genuinely welcome and congratulate the Secretary of State and the ministerial team on their new jobs? Good transport can be a driver of economic growth and I ask the Secretary of State to be a champion for transport, rather than treat his position as an application for his next job.

The Secretary of State will be aware that the rail network is carrying more passengers and more freight than at any time since the 1940s, and projections predict further growth. That is why we promised an additional 1,300 carriages by 2014 and we were well ahead of schedule in providing those. In fact, at the last Transport questions, both Liberal Democrats and Conservatives asked us to provide more carriages even more quickly. Now that they are in government together, can the Secretary of State tell us how many more carriages than 1,300 they will provide and how much sooner than 2014?

[Mr Hammond]

I am genuinely grateful to the right hon. Gentleman for his congratulations.

The Department’s principal task is to support economic growth and the Government’s 2020 carbon reduction targets, and we have to demonstrate that we can deliver them in tandem. Approximately half the HLOS––high-level output specification––rolling stock has already been contracted and will proceed, but no further contracts will be signed during this financial year owing to the disastrous public finances. When the spending review is completed, we will review where we are with the programme and make a further announcement in due course.

[Sadiq Khan]

One would have thought that if the Secretary of State was serious about moving people from road to rail, he would encourage more carriages, so that people would be encouraged in turn to use the rail system. He will be aware that the Under-Secretary of State for Transport, the hon. Member for Lewes (Norman Baker) is a passionate advocate of reform of rail fares; in fact, in his last question at a Prime Minister’s questions, he challenged the then Prime Minister to change the rail fares formula to 1% below inflation. I am sure that he remains a passionate advocate and is not simply window dressing, so now that they are hon. Friends, will the Secretary of State confirm how soon he will announce a change in the rail fare regime and how much below inflation it will be?

[Mr Hammond]

It is amazing that the right hon. Gentleman, who was a member of the last Government, appears to come to the Dispatch Box with no recognition of the deficit we are facing and the financial challenges that the Government have to deal with in order to clear up the mess that he and his hon. Friends left behind. We are committed to fair rail fares, but we have to do everything within the context of the fiscal inheritance that we have received.

[Alec Shelbrooke (Elmet and Rothwell) (Con)]

I urge my right hon. Friend, when considering how best to expand rail, to consider branch lines off high-speed rail links to service some of the commuter towns disfranchised under the Beeching review.

[Mr Hammond]

Although we want to continue to increase passenger usage of the railways, we have to operate within a tightly constrained public spending environment. Our first priority must be to maintain and improve the trunk railway network that we have already. I will consider any proposals for reopening branch lines, but I have grave doubts about whether it is likely to be affordable in the foreseeable future.

[Mr Speaker]

Order. I gently point out that we need to make better progress, so short questions and short answers would be appreciated.

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[Robert Halfon (Harlow) (Con)]

8. What priorities he has set for departmental expenditure on the road network.

[The Secretary of State for Transport (Mr Philip Hammond)]

I welcome my hon. Friend to his place. He worked long and hard to win his seat and he thoroughly deserves the success that he has now enjoyed.

The first priority of this Government must be tackling the country’s unsustainable level of debt. Once the spending review is complete and the Department has settled its budget, we will review all existing schemes, whether road or otherwise, on the basis of the economic benefits that they deliver.

[Robert Halfon]

Is the Secretary of State aware that Harlow has just one entrance to a motorway, whereas similar towns, such as Welwyn Garden City, have two or three and Basildon has four? Is he aware that traffic in Harlow is gridlocked and that residents in my constituency are crying out for an extra junction on the M11? With the road review under way, and when finances allow, will he give strong consideration to providing the road infrastructure that Harlow so desperately needs?

[Mr Speaker]

Order. I do apologise, but the questions are still too long. We are getting mini-essays. I want short questions.

[Mr Hammond]

I can tell my hon. Friend that we will be happy to consider proposals from local authorities and the Highways Agency for improvements, but he will understand that they will be affordable only once the deficit has been eliminated.

[Derek Twigg (Halton) (Lab)]

A few moments ago, the Secretary of State said that one of the key priorities was supporting economic growth. How does suspending the decision on the Mersey Gateway project help economic growth in Merseyside and Cheshire, particularly given the support from the Conservative councils in Cheshire? And he should not give us that nonsense about a black hole in the finances.

[Mr Hammond]

If the hon. Gentleman thinks that the black hole in the finances is nonsense, he needs to go back and do a little more homework. It is the most serious problem facing our country today and the most urgent challenge for this Government. However, let us be clear about the Mersey Gateway project. All we have done is suspend the progress of the scheme until after the current spending review is completed. We believe that it would be wrong to encourage or allow local authorities to incur significant additional expenditure on a large number of projects when some of them clearly may not be able to proceed on the original timetable.

[Sir Alan Beith (Berwick-upon-Tweed) (LD)]

Is my right hon. Friend going to treat the A1 as a national strategic road, rather than a regional road, and develop plans for full dualling of it when resources allow?

[Mr Hammond]

Yes.

[Mr Speaker]

We are grateful to the Secretary of State.

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[Fiona Mactaggart (Slough) (Lab)]

T1. If he will make a statement on his departmental responsibilities.

[The Secretary of State for Transport (Mr Philip Hammond)]

The Government’s first priority is reducing the budget deficit left us by the previous Administration, and I am determined that the Department for Transport should play its full part in that process. Against that backdrop, my Department is focused on building a modern and sustainable transport system that will contribute both to future economic growth and to the achievement of the Government’s climate change targets.

[Fiona Mactaggart]

When does the Secretary of State expect to receive Lord Mawhinney’s report on Heathrow high-speed rail access? When he receives it, will he consult Slough, whose prosperity depends completely on its proximity to Heathrow?

[Mr Hammond]

I have asked Lord Mawhinney to let us have his preliminary conclusions by the end of July, and I will be happy to consult the hon. Lady’s local authority once I have received that report from him.

[Simon Hughes (Bermondsey and Old Southwark) (LD)]

T3. As Ministers work out how best to transfer travel from plane to train, where that is possible, will they prioritise talks with European colleagues to make sure that the European rail network works and with colleagues in this country to make sure that high-speed rail will allow people to go through the capital without having to change trains?

[Mr Hammond]

I thank my hon. Friend, who makes a very important point. Now that we have made it clear that there will be no third runway at Heathrow airport, modal shift from air to rail becomes crucially important, including for journeys through to Europe. I have asked HS2 Ltd to look at the options and the costs of providing a direct link from the proposed HS2 to the existing high-speed rail network to the Channel tunnel.

[Mr Stephen Hepburn (Jarrow) (Lab)]

T2. I cannot stress enough the importance of the Tyne and Wear metro to the people of the north-east—in respect of the economy, the environment and the general quality of life. The previous Government pledged £350 million to upgrade the scheme, so will the Minister acknowledge the importance of the Tyne and Wear metro and tell us whether he is going to honour that pledge?

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[Mr John Leech (Manchester, Withington) (LD)]

May I urge the Secretary of State to accept the recommendations of the North review and, as a matter of urgency, present proposals for a reduction in the drink-drive limit from 80 to 50 mg?

[Mr Philip Hammond]

Sir Peter North has delivered a comprehensive report, containing 51 recommendations, on issues relating to driving under the influence of drink or drugs. The Government will consult other Departments on the implications of the recommendations, and we will announce our position in due course.

[Hugh Bayley (York Central) (Lab)]

In April, when Jarvis was placed in administration, Network Rail cancelled millions of pounds of track renewal contracts on the east coast main line. We have recently been reminded of the Potters Bar rail accident. That track renewal work must go ahead. Will the Minister arrange for me to meet Iain Coucher—along with Members representing other constituencies where many workers have been made redundant as a result of the cuts—so that we can discuss with him the timetable for reinstating the track renewal contracts with other companies?

[Mr Hammond]

The Office of Rail Regulation is responsible for ensuring that the railway is managed safely, and that works that are required for its safety go ahead. The hon. Gentleman may not be aware that shortly before Question Time, Network Rail announced that Iain Coucher would be stepping down from his role. For that reason it would not be practical for me to arrange a meeting with him, but I should be happy to try to facilitate a meeting with another appropriate representative of Network Rail.

[Zac Goldsmith (Richmond Park) (Con)]

Will the Secretary of State confirm that he will protect runway alternation at Heathrow?

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[Andrea Leadsom (South Northamptonshire) (Con)]

May I welcome my right hon. Friend the Secretary of State to his new position? Does he agree with me in principle that those people whose homes have been blighted by Labour’s preferred route for high-speed rail should be fully compensated, rather than at the 85% of value as proposed by Labour?

[Mr Philip Hammond]

I am grateful to my hon. Friend for her question. One of the first decisions I took in my new post was to extend the consultation on the exceptional hardship scheme. That consultation closes today and we will publish our conclusions in due course.

The Minister for Women and Equalities was asked—