Oral Answers to Questions

Lord Hammond of Runnymede Excerpts

Thursday 23rd June 2011 Commons Chamber

[Mike Freer (Finchley and Golders Green) (Con)]

1. What recent representations he has received on the competitiveness of UK airports.

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

I regularly receive representations from the aviation industry and other stakeholders on a range of issues relating to UK airports.

[Mike Freer]

I thank the Secretary of State for that answer. He may be aware that some have suggested a congestion levy on south-east airports to fund a discount on air passenger duty in regional airports. What assessment has he made of the competitiveness of south-east airports in view of this ludicrous suggestion?

[Mr Hammond]

I think my hon. Friend’s question betrays the fact that he has already made his own assessment. I believe that this suggestion was made in a response by regional airports to a consultation on APD conducted by my right hon. Friend the Chancellor. No doubt the Chancellor will respond to those suggestions in due course.

[Graham Stringer (Blackley and Broughton) (Lab)]

I think it is an excellent suggestion. There is huge capacity in the regional airports and since there has been complete freedom to fly anywhere in Europe, it has been difficult for Governments to use that capacity. Does the Secretary of State have any ideas how that extra capacity in regional airports can be used to the benefit of the UK economy?

[Mr Hammond]

The hon. Gentleman is absolutely right: there is significant capacity in our regional airport runways. We have to recognise that the demand for aviation growth in the UK is not just an aggregate demand—it has a certain geographical distribution—but I am keen that the regional airports play a role in meeting that demand. I believe that the high-speed rail project will help them to do so.

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

As part of the review, will the Secretary of State discuss with the Treasury the viability of having an APD holiday for new long-haul routes from regional airports to improve their competitiveness with south-east airports and airports on the continent?

[Mr Hammond]

As I said, my right hon. Friend the Chancellor has conducted a consultation on the future of APD and he has made it clear that any changes to the system would have to be broadly revenue-neutral. I do not know whether my hon. Friend submitted his suggestion during the course of the consultation, but if not, I am sure that the Chancellor would be prepared to take it as a late entry.

[Mr Nigel Dodds (Belfast North) (DUP)]

Does not the Secretary of State agree that the competitiveness of Belfast airports is gravely impinged by the fact that APD is levied at £120 for a return on business-class long-haul flights from Belfast, while 90 miles down the road in Dublin, it is €3 going down to zero. Clearly, as far as Northern Ireland is concerned, there is a strong case for looking at the issue of APD.

[Mr Hammond]

Once again, I am certain that the right hon. Gentleman will have submitted his views to the Chancellor in the consultation to which I just referred.

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

Britain’s business community finds it incredible that the Government have no intention of bringing forward a proper strategy for aviation and UK airports for the next two years. Opposition Members believe that any expansion in aviation must be sustainable, but is it not nonsense for the Government to rule out any expansion in the south-east, regardless of whether or not it can be demonstrated to be sustainable. Is not the chief executive of London First right when she warns that this failure is

“damaging our economy and enhancing that of our EU rivals”?

[Mr Hammond]

The hon. Lady is right that we have a big challenge in relation to aviation growth in the south-east. What I did not hear her do was repeat Labour’s policy to build a third runway at Heathrow airport. Perhaps at some stage she could tell the House whether that remains Labour’s policy. The coalition Government cancelled the third runway at Heathrow because of the unacceptable environmental burden that it imposed, but we are committed to developing a new and sustainable aviation strategy that will allow the growth of aviation in the UK—but only when it meets its environmental obligations.

[Stephen Mosley (City of Chester) (Con)]

2. What recent representations he has received on varying national motorway speed limits.

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

6. What progress his Department has made on its consultation on High Speed 2.

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

I launched the national consultation on high speed rail on 28 February. It will close at midnight on 29 July and decisions will follow by December. The Government consider that a high-speed rail network between London and Birmingham and onward to Manchester and Leeds would drive economic growth and prosperity as well as providing vital new capacity on the west coast corridor.

[Mrs Grant]

Does the Secretary of State also agree that HS2 could bridge the wealth divide that exists between the north and the south?

[Mr Hammond]

Absolutely. 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.

[Lilian Greenwood (Nottingham South) (Lab)]

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?

[Mr Hammond]

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.

[Mr Adrian Sanders (Torbay) (LD)]

Will the Minister please give thought to the people of the west country who have some of the slowest rail links with London and some of the most expensive fares? Rather than extra, speedy lines north, we would like some speedy and efficient lines south-west.

[Mr Hammond]

I am delighted to be able to tell my hon. Friend that electrification of the Great Western main line and the introduction of the IEP rolling stock will improve services in terms of speed, reliability, comfort and capacity on services between London and the west country.

[Emily Thornberry (Islington South and Finsbury) (Lab)]

7. What steps his Department is taking to ensure that the Crossrail programme provides adequate toilet facilities at stations and on its rolling stock.

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[Kevin Brennan (Cardiff West) (Lab)]

8. What proportion of its stake in NATS Ltd the Government plan to sell; and if he will make a statement.

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

I recently launched a call for evidence on whether the Government need to retain a shareholding in NATS in order to meet our aviation policy objectives. The results will inform decisions on whether to sell all, part or none of the Government’s shareholding in the company. I expect to update the House once we have considered the responses to the call for evidence.

[Kevin Brennan]

Do I take it from that reply that the Secretary of State is considering a complete sell-off of the Government’s interest in NATS? Will he also tell us what consultations he is having with the staff and the airline group about their views on the matter?

[Mr Hammond]

The call for evidence has gone to stakeholders in and around the company and the air traffic sector. We asked what the implications would be of selling all, part or none of our shareholding. We are open-minded and conscious of the fact that there could be strategic implications, and we want to understand from the people who work in the industry what those strategic implications might be before making any decision.

[Chris Evans (Islwyn) (Lab/Co-op)]

9. What recent discussions he has had with FirstGroup on the future of the First Great Western rail franchise; and if he will make a statement.

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[Jo Swinson (East Dunbartonshire) (LD)]

14. What steps he is taking to encourage take-up of low-carbon vehicles.

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

The Government have made provision of over £400 million for measures to promote the uptake of ultra-low-carbon vehicle technologies. These measures include support for consumer incentives, the development of recharging infrastructure and a programme of research, development and demonstration work. Low-emission vehicles also benefit from tax advantages.

[Jo Swinson]

A convenient network of publicly available charging points is essential if we are to encourage the uptake of electric cars, so I welcome the £1.45 million of Government funding for Transport Scotland to build 375 charging points across the central belt of Scotland, but I was concerned at BBC media reports last month suggesting that the UK in general is behind schedule in getting these charging points in place. Will the Secretary of State give us an update on progress on charging points?

[Mr Hammond]

I am grateful to the hon. Lady for her question and I agree that we need to understand the way in which the public expect to use public charging points, in order to understand how we can best roll out the electric vehicle programme. Early evidence from other countries has produced some results that might not have been intuitive before the demonstration projects. It is true that the total number of charging posts that are rolled out will be less than was originally envisaged, because in a number of cases promoters of the plugged-in places schemes have determined that multi-headed charging posts are the best way forward. That accounts for some of the discrepancy in numbers to which I think the hon. Lady is referring.

[Peter Aldous (Waveney) (Con)]

Will the Minister consider maintaining the duty differential for sustainable biofuels? This has played an important role in creating green jobs, which are now threatened by the removal of the differential in April 2012.

[Mr Hammond]

As my hon. Friend knows, the differential plays an important role in bringing forward sustainable biofuels. In particular, the re-use of used oils is an important source of sustainable fuels. However, all matters relating to duty are for my right hon. Friend the Chancellor to consider and, when the current arrangements expire in 2012, he will consider whether to renew them and on what basis.

[Mr Tobias Ellwood (Bournemouth East) (Con)]

15. What recent discussions he has had with the Mayor of London on public transport provision during the London 2012 Olympics.

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

I have lead accountability in Government for transport preparations for the 2012 Olympic games. Ministers and departmental officials regularly meet and correspond with the Mayor of London and Transport for London officials on a variety of London transport issues, including those in relation to the 2012 Olympics. The Mayor of London also attends the regular meetings of the Cabinet Sub-Committee overseeing preparations for the Olympics, of which I am a member.

[Mr Ellwood]

Not all the events are taking place in London. Bournemouth is still coming to terms with losing the bid for the beach volleyball to Horse Guards Parade. However, Weymouth is delighted to be hosting the sailing events. Will the Secretary of State outline what improvements to transport will take place for 2012 in that area?

[Mr Hammond]

I agree that on the face of it Bournemouth has a better beach than Horse Guards Parade, but there we are. My hon. Friend is right to draw attention to the transport challenges around the other venues. Plans to improve transport access to Weymouth during the Olympic games include temporary traffic management and a £5.7 million scheme to improve the Canford Bottom roundabout, which will include the installation of 70 additional traffic lights to control traffic flow. During this summer, the Highways Agency will be trialling the use of its traffic officers on the route between London and Weymouth as an additional means to manage traffic flows.

[Karl Turner (Kingston upon Hull East) (Lab)]

16. What plans he has for future improvements on the A63.

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[Kate Green (Stretford and Urmston) (Lab)]

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

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

Since I last answered departmental questions, Sir Roy McNulty has published his report on improving value for money on our railways, which I have committed to responding to by publishing detailed proposals for the future of the railways before the end of the year. I have published a new strategic framework for road safety and announced the outcome of the competition to build carriages for the Thameslink programme. Today my right hon. Friend the Minister of State has launched a consultation on proposals to reform the air travel organiser’s licence holiday protection scheme. I have also dealt with the consequences of the Grimsvotn volcano eruption, which is a good deal easier to say than Eyjafjallajokull and, I am pleased to say, caused a good deal less disruption.

[Kate Green]

Trafford Park in my constituency is home to many international businesses and makes a crucial contribution to UK manufacturing and exports. Excellent rail links are essential to its success. In planning for High Speed 2, what is being done to ensure that it and the wider regional rail network are fully integrated?

[Mr Hammond]

I would make two points to the hon. Lady. First, High Speed 2 will release significant amounts of capacity on the west coast main line, which will be available for different types of service, including freight. Secondly, we are clear that high-speed rail is not an alternative to investment in our conventional railways. Once people arrive at the high-speed destinations they will still need to get to their local destinations across the region, so we have to reinforce the regional rail networks as part and parcel of the programme of rail investment.

[Stephen Phillips (Sleaford and North Hykeham) (Con)]

T3. I recently had the pleasure of meeting the parish council in the village of South Kyme in my constituency, which brought to my attention the loss of the village’s only bus service. Many constituents have reported to me the loss of bus services, which are incredibly important for rural communities. What support can the Department lend to re-establish that service and ensure that those that exist remain?

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[Margaret Beckett (Derby South) (Lab)]

Is the Secretary of State aware that words such as “rebalancing our economy to promote private sector jobs and skilled manufacturing” ring very hollow in Derby, where 3,000 such jobs are now at risk as a result of a decision to build Thameslink trains in Germany? I understand that the Government reviewed and reconfirmed the contract after the election, but I understand also that the Secretary of State still has the power to call in the process and to invite the bidders to re-tender. Can he confirm that he will now do so?

[Mr Philip Hammond]

I understand the disappointment felt by Bombardier and, indeed, the anxiety felt by the people of Derby about that decision, but before the right hon. Lady delivers me a finger-wagging lecture perhaps I can remind her of a couple of points. Her Government designed and initiated the procurement process, and some Members may remember that they used to call it Thameslink 2000. We inherited it 16 years late and £600 million over budget, and it fell to us effectively to open the envelope. The procurement was carried out under the terms of the EU directive, and the Siemens bid offered the best value for money on the criteria for appraisal set out in the original competition that the previous Government launched. We have to comply with EU law, and I do not have the power that she suggests I have.

I firmly believe that free trade and open markets are the best way for us to proceed, but I believe also in the concept of the level playing field, and there is a case for looking at the way in which some of our neighbours and competitors operate the EU procurement directive, because it seems quite astonishing that, complying with that directive as we do, they have managed to achieve very high percentage penetrations of French-built trains on the French railway and of German-built trains on the German railway.

[Mr Edward Timpson (Crewe and Nantwich) (Con)]

T6. As my right hon. Friend has just said, the previous Government tied the hands of this Government on such decisions, including the Thameslink contract, which, as he is aware, affects my constituency. What can we do to ensure that British business does not lose out as a result of this false economy of going for cheap foreign contracts that leave us picking up the domestic dole bill?

[Mr Hammond]

I understand the concern of people in Crewe as well, of course, but we must not fall into a trap. The Siemens bid clearly offered the best value for money, and we must not lose sight of that fact. The wider issue of how we operate the procurement directive, and of how we work with the UK supply chain in industries such as rolling stock construction, is something that we need to review, and I am in discussions with my right hon. Friend the Business Secretary about how we do that.

[Lisa Nandy (Wigan) (Lab)]

T5. I recently met a group of my constituents from Hunter Lodge in Wigan, who told me that they are unable to travel together on train services throughout the country because most companies will carry only one wheelchair user at a time. Does the Minister agree that, 16 years after the landmark Disability Discrimination Act 1995, it is entirely unacceptable that that appalling situation should continue? What is he therefore doing to put pressure on train companies to ensure that the situation does not continue?

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[Mr Brian H. Donohoe (Central Ayrshire) (Lab)]

The Secretary of State will no doubt have seen the reports in yesterday’s newspapers about Willie Walsh of British Airways having suggested that as a consequence of the fact that a third runway will not be built in the south-east at Heathrow, he will increase BA’s business in Madrid. Is that not rather ironic?

[Mr Philip Hammond]

I am pleased to see that British Airways, along with BAA, now accepts the finality of the coalition Government’s decision that we will not allow the building of a third runway at Heathrow airport. However, that is not the end of the matter. We have to provide for aviation growth in the south-east of England, and in the UK as a whole, in order to meet the needs of a growing economy in future. That is why we have launched a scoping document and will bring forward a new sustainable aviation policy by the end of next year.

[Andrew Stephenson (Pendle) (Con)]

T9. Will my right hon. Friend update the House on what progress has been made on the reopening of the Todmorden curve, which will provide a faster rail route between East Lancashire and Manchester?