Oral Answers to Questions

Lord Hammond of Runnymede Excerpts

Thursday 5th May 2011 Commons Chamber

[Claire Perry (Devizes) (Con)]

6. What plans he has for the reform of rail franchising; and if he will make a statement.

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

The Government published “Reforming Rail Franchising: response to consultation and policy statement” on 19 January this year. In it we set out, among other things, our commitment to longer franchises, less prescriptive service requirements, and the transfer of stations to train operators. The Department is now considering, within the framework, the detailed invitation to tender for the intercity west coast franchise.

[Penny Mordaunt]

Since the Adjournment debate on South West Trains, I have received thousands of letters and e-mails from long-suffering passengers around the country who are having to put up with suburban trains on mainline routes. Is it not time that we had minimum standards of comfort set out in rail franchise agreements, and should not companies that ignore such concerns not have their franchises renewed?

[Mr Hammond]

I appreciate my hon. Friend’s campaign on that point, but the simple fact is that on many of our suburban railways, particularly those going into London, we have limited capacity. Trains are already at maximum length, and the number of train paths is already at the maximum capacity of the railway. Taking out seats to make them larger, which I think is my hon. Friend’s point, would simply mean more commuters standing, and those commuters who join the train closer to London are vehemently against that, so the Government have no plans at the moment to specify the size or configuration of seats in commuter trains.

[Claire Perry]

Will the Secretary of State expand for us on the benefits that he expects passengers to get from changed patterns of franchising? In particular, will they benefit passengers in Wiltshire, especially those who would like to travel on the proposed trans-Wilts railway, which would improve considerably our north-south travel patterns in the county?

[Mr Hammond]

As my hon. Friend will have anticipated, I specifically had passengers in Wiltshire in mind when we designed our franchising proposals. The key thing is to drive down the cost of our railways. We have to make them more efficient, and we have to close the productivity gap between them and competitive railways in Europe to relieve the pressure on both the taxpayer and the fare payer. The changed franchise specifications will give train operators incentives to drive down costs—something that, frankly, they have not been incentivised to do under the current system.

[Derek Twigg (Halton) (Lab)]

The Secretary of State made a point about less prescriptive service requirements, but will he give a guarantee that stations such as Runcorn mainline station and Widnes station in my constituency, which have seen a significant increase in passengers in the past five years, will not, as a result of his reform of franchising, have a reduction in the number of stopping trains?

[Mr Hammond]

I understand the hon. Gentleman’s point, and our intention is to maintain services while creating sufficient flexibility at the margin to allow franchisees to operate their businesses in a way that makes them more efficient. That is a complex balancing act. Nobody wants train services to be reduced as a consequence, but if we are absolutely prescriptive about the timetable, down to officials detailing the precise time of every train stop at every station, the scope for improving the efficiency of our railways will be severely limited. It is a balancing act, and we are determined to get it right.

[Mr Kevan Jones (North Durham) (Lab)]

Is not the point, certainly on intercity franchises, that the concentration is on improving journey times for long distances, which has an adverse effect on small commutes, for example from Chester-le-Street in my constituency to central Newcastle, which is only a 10-minute commute, but is a well-used service? As a result of the way in which franchises are structured, fewer trains are stopping to carry commuters on that vital route.

[Mr Hammond]

The hon. Gentleman is right. We need to get the balance right between long-distance intercity services, where stops disadvantage long-distance travellers, and short-range commuter services. In many cases, it is not appropriate for long-distance intercity trains to have a service pattern that is organised around the local commuter travelling pattern. We need local commuter trains to deliver that.

These are complex issues. Our view is that train operators are best placed to deliver services to their users in a system that incentivises them to deliver the services that passengers want. That system has not existed hitherto under the revenue-sharing arrangements in which the Government collect most of the additional revenue taken at the fare box by the train operator. Putting those incentives back in place will deliver better services and greater efficiency.

[Dr Julian Huppert (Cambridge) (LD)]

Will the new rail franchising arrangements enable the Secretary of State to take steps to ensure that fares do not rise at the huge rates that we have seen recently, but begin to level off? Will he also make sure that it is simpler and easier for people to understand what they ought to pay for a particular trip?

[Mr Hammond]

The hon. Gentleman makes two good points. First, the fare system is incredibly complex and, secondly, passengers face high fare levels—we fully appreciate that. The only way in which we can tackle high fare levels is to make the railway more efficient. We are determined to do so, and we will receive and publish shortly the report by Sir Roy McNulty on value for money on the railways, which will make proposals to achieve that objective.

[Maria Eagle (Garston and Halewood) (Lab)]

I am glad that the issue of fares has come up, because on 9 March the Secretary of State attended a presentation on the findings of the rail value-for-money review, which he will publish later this month. I have a leaked copy, which includes a recommendation that in future rail franchises should have

“more freedom to set fares”.

Does he stand by what he told the House on 27 January, when he said that the objective of the review was

“to reduce the burden on both the taxpayer and the fare payer”?—[Official Report, 27 January 2011; Vol. 522, c. 426.]

[Mr Hammond]

Yes, absolutely—that is the key objective of the McNulty review. The hon. Lady will know, if she wants to look at this objectively, that we have severe crunch-points on our rail system, where the current pattern of fares is driving perverse behaviour. The 18.59 train north from Euston on a Friday evening is virtually empty, but the 19.01 train is packed, with people standing, and the police preventing others from joining the train for safety reasons, and that is because of the way in which the fare structure works. We must be able to use the pattern of fares to address crowding, and to avoid the perverse incentives that have been created.

[Maria Eagle]

Can the Secretary of State explain some quotes in the document that suggest that he will allow franchisees to do what they want with fares? For example, the document states that he needs

“to consider in letting future franchises: more freedom to set fares”

and should

“encourage TOCs to take a more commercial approach to fare setting”.

There are other such quotes in the document, which seems to suggest that he will allow train operating companies to charge whatever they want.

[Mr Hammond]

The hon. Lady is confusing herself. The document from which she has quoted is, I think, Sir Roy McNulty’s presentation to the seminar to which she referred. It is not a Government document.

[Sir Alan Haselhurst (Saffron Walden) (Con)]

Would my right hon. Friend explain why passengers in the Greater Anglia franchise area face the possibility of having three different train operators within 18 months, which is likely to cause confusion to them and to staff? The only beneficiaries would appear to be the companies that supply the paint to change the carriages.

[Mr Hammond]

The decision was taken to let a short management contract for the East Anglia franchise because it is our intention to let a longer-term contract and we wanted the opportunity to incorporate the findings of the McNulty review into the franchise specification before doing so.

[Greg Hands (Chelsea and Fulham) (Con)]

7. What improvements his Department is seeking to achieve in respect of the passenger experience at UK airports.

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

We are part-way through a programme of 30 public roadshows along the line of the proposed London to west midlands route, and we have held regional seminars across the country. The programme was suspended for the duration of the election purdah period, but will resume next week. The consultation process finishes on 29 July, and I expect to announce the Government’s response later this year.

[Chris White]

Today I will be heading back to my constituency for the final afternoon of campaigning, and many colleagues will be heading back to theirs. I will be travelling on the excellent Chiltern line service from Marylebone. However, many constituents are concerned that high-speed rail will lead to a loss of conventional rail services, as has been the experience in other countries with high-speed rail networks. What assurances can the Secretary of State give that the Department for Transport is taking those concerns seriously and what impact will there be on such highly popular local networks?

[Mr Hammond]

As I look around the Chamber, it seems to me that one or two Members may have travelled back for the final afternoon of canvassing and campaigning already.

My hon. Friend could not be more wrong. One of the huge benefits of building a new, dedicated high-speed line will be the released capacity on the existing conventional lines—the east coast main line, the west coast main line and the midlands main line. Those lines will be capable of being reconfigured to deliver better longer-distance and short-distance commuting services and more freight paths for freight trains, taking more freight off the road and getting it on to rail. That is one of the big wins of a dedicated high-speed line.

[Stephen Timms (East Ham) (Lab)]

Does the Secretary of State agree that there needs to be a full high-speed interconnection between High Speed 1 and High Speed 2 from the start? What are his plans for those interconnections?

[Mr Hammond]

The right hon. Gentleman will know that the published plans include a link from Old Oak Common via a tunnel round to the north of St Pancras station, connecting directly to the High Speed 1 line. It will be possible to run trains from the midlands and the north of England, directly through that tunnel, to the High Speed 1 network and onwards to the channel tunnel.

[Fiona Bruce (Congleton) (Con)]

10. What steps he is taking to assist local authorities to repair potholes.

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[Mary Macleod (Brentford and Isleworth) (Con)]

12. What discussions he has had with the Mayor of London on the operation of the transport network in London during the London 2012 Olympics.

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

I have lead accountability within Government for transport preparations for the London 2012 Olympics. I am a member of the Cabinet sub-committee on the Olympics, which meets regularly and is also attended by the Mayor of London and representatives of the London Organising Committee of the Olympic Games and Paralympic Games and the Olympic Delivery Authority.

My officials and I have regular discussions with the Mayor and his officials in the Greater London authority and Transport for London on transport during the Olympics. Transport for London works closely with the ODA, which has statutory responsibility for transport planning for the games.

[Mary Macleod]

As the Secretary of State mentioned, a number of organisations are involved in the planning and delivery of a successful transport network for the games—LOCOG, the ODA, the Mayor of London and Transport for London. Can my right hon. Friend tell me what efforts have been made to co-ordinate planning across those groups to ensure that we can manage the huge numbers of athletes and spectators? Does he feel that appropriate measures have been put in place to keep London moving during that critical time?

[Mr Hammond]

As I have already described, there is a mechanism for bringing all those groups together through the Cabinet Olympic sub-committee, which is very effective. During the games, the Transport for London control room in central London will be the main control room for managing the transport networks.

The required measures are being put in place, but my hon. Friend is right to say that it will be challenging to manage down background demand for travel in London to allow sufficient capacity for the games family—the athletes, spectators and sponsors—to travel around. That is a big challenge, which we will face in the next 12 months—I am under no illusions about the size of it.

[Greg Hands (Chelsea and Fulham) (Con)]

T2. If he will make a statement on his departmental responsibilities.

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

Since the previous departmental questions, I have published a scoping document about our planned development of a sustainable aviation policy. I have allocated £200 million for pothole repairs to individual local authorities, and announced the allocation of 20 additional rail carriages for commuter routes serving the Leeds area. We have also announced the go-ahead for the long-awaited Swindon to Kemble track redoubling, and the Ordsall chord in Manchester, linking Victoria and Piccadilly stations.

[Greg Hands]

Will the Secretary of State join me in condemning as obscene and irresponsible the proposed six days of tube strikes by the National Union of Rail, Maritime and Transport Workers next month over only two individual employees? Will he also condemn Labour’s candidate for London Mayor, who has signally failed to condemn the action, and, indeed, his deputy, who even appears at RMT protest meetings?

[Mr Hammond]

I absolutely agree with my hon. Friend that the series of strikes is highly irresponsible. As I said last night, no one in the Government is spoiling for a fight with the unions, but the unions appear to be spoiling for a fight with London. I say to the RMT and other unions that that sort of irresponsible strike action, when an alternative, proper remedy—an ongoing employment tribunal—is available, only strengthens the hand of those, including the Mayor, who call for tougher industrial relations laws.

[Maria Eagle (Garston and Halewood) (Lab)]

As the Secretary of State will know, today marks the closing of the consultation on his plans to axe more than half the UK’s coastguard stations, leaving just three offering 24-hour cover. Yet, in a letter to me this week, the Maritime and Coastguard Agency stated that the consultation,

“will be reopened in the Summer”.

Will the right hon. Gentleman confirm that the consultation closes today, as the letter says, “for the first time”? Given that it is increasingly clear that the policy is a shambles, why does he not just abandon the ill-thought-through proposals, which will leave our coastline a more dangerous place?

[Mr Hammond]

What a wonderful piece of opportunism. I can confirm that the consultation closes today. Of course, the previous Administration originally made the proposals to modernise the coastguard. We have listened carefully to the representations, and some very sensible representations have been made about how the reconfiguration might be managed to protect more of the local location of services. Once the consultation is closed, we will publish a summary of the findings and make our response to it.

[Mrs Helen Grant (Maidstone and The Weald) (Con)]

T4. Will the Minister meet me as soon as possible to discuss the reinstatement of the Maidstone East to City of London service?

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[Helen Jones (Warrington North) (Lab)]

T3. Does the Secretary of State realise that his earlier answer to my hon. Friend the Member for Halton (Derek Twigg) will have raised deep concerns in parts of the north-west, not least in Warrington, which is hugely dependent on its transport links to boost and develop its economy? Is he prepared to give an assurance to the House that any new franchise arrangements will not reduce the number of intercity trains stopping at Warrington Bank Quay? Yes or no?

[Mr Philip Hammond]

I do not want to say, “Calm down”, but I would like to say that I am sorry if I have set a hare running. I was trying to say to the hon. Member for Halton that we are very much aware of the risk that making franchises less prescriptive could lead to reductions in train services, and we are not prepared to accept that, so I can assure the hon. Lady that under the new west coast franchise, the same number of station stops at Warrington Bank Quay will occur as under the present timetable.

[Duncan Hames (Chippenham) (LD)]

I warmly welcome the creation of the sustainable local transport fund. I hope that the Minister is aware of the exciting trans-Wilts rail proposal, of which we heard earlier, developed by the community rail partnership, which has demonstrated the strong support of local businesses and MPs. Can he confirm that he would welcome a bid from Wiltshire council to that fund, and that it would be given serious consideration?

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[Grahame M. Morris (Easington) (Lab)]

Will the Secretary of State commit, as the previous Labour Government did, to legislate for a high-speed rail line all the way to the north, and in so doing convince the sceptics that the Government have a credible economic policy that would benefit all the regions?

[Mr Philip Hammond]

As I have said many times at the Dispatch Box, the Government’s programme is for a Y-shaped network that will take the high-speed railway all the way to Manchester and Leeds. I am aware of the scepticism among some Members and others outside the House about our commitment to that programme. I have discussed this matter with Members of all parties interested in securing this programme, and I have given a commitment to find a way of getting into the first hybrid Bill a commitment to the Y-shaped network sufficient to reassure those Members. However, it simply is not practical from a parliamentary point of view to have a single hybrid Bill dealing with the whole line, so it will have to be done as two hybrid Bills. We will ensure that the first Bill contains a commitment sufficient to satisfy the hon. Gentleman and his hon. Friends.

[Gordon Henderson (Sittingbourne and Sheppey) (Con)]

Will my right hon. Friend give an assurance that a meaningful consultation will take place with rail user groups before any of the existing rail franchises are renewed? I am thinking in particular of Southeastern, which has just had its current franchise extended by two years, despite an appalling performance record on the north Kent coastal line and repeated customer complaints.