Oral Answers to Questions

Lord McLoughlin Excerpts

Thursday 27th June 2013 Commons Chamber

[Mark Menzies (Fylde) (Con)]

Q1. What steps his Department is taking to improve coastal safety.

[The Secretary of State for Transport (Mr Patrick McLoughlin)]

The Department works closely with many organisations to promote safety around our coast.

Last year we saw an increase in accidents around this time of year, and while I want to encourage everyone to enjoy our beautiful coast this summer, I want them to stay safe and to follow the advice of organisations such as the coastguard, the RNLI, the National Water Safety Forum and the Royal Yachting Association so that they enjoy their time around the coastline.

[Mark Menzies]

Over the summer months, millions of tourists will flock to tourist resorts such as Lytham St. Annes and the Fylde coast. Will my right hon. Friend assure the House that all will be done to keep our inshore waters as safe as possible to encourage more people to holiday here in the UK?

[Mr McLoughlin]

My hon. Friend is right that many constituents will flock to the coast, including the coastline in his constituency and many others around the UK. Our coastline is fantastic, attractive and beautiful, but it is also dangerous and people should not take risks or underestimate it.

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

Amphibious vessels such as the Duckmarine that recently sank in Liverpool appear to have at least three regulators: VOSA and the traffic commissioners; the Maritime and Coastguard Agency; and the Driving Standards Agency. Will the Secretary of State ask the accident investigators to consider whether this split regulation and split responsibility is the best way to guarantee public safety?

[Mr McLoughlin]

Of course we are all very concerned about the incident that happened in Liverpool and I will talk to the inspectorate about it. A report is being prepared by the marine accident investigation branch. I will want to see what it says, and I shall take the point made by the hon. Lady as Chair of the Select Committee.

[Mr Iain McKenzie (Inverclyde) (Lab)]

It has been revealed that the maritime rescue co-ordination centre in Belfast has been staffed below risk level on 191 shifts this year alone. Does the Minister find that acceptable, and, if he does not, what is he doing about it?

[Mr McLoughlin]

It is vital that we have cover, and that if there is low availability pairing arrangements ensure that others take over that cover. We will not demur from our responsibility.

[Mr Nicholas Brown (Newcastle upon Tyne East) (Lab)]

Q2. What his policy is on quality contracts for bus services.

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[Jenny Chapman (Darlington) (Lab)]

6. What his policy is on the privatisation of east coast main line services; and if he will make a statement.

[The Secretary of State for Transport (Mr Patrick McLoughlin)]

This Government’s programme for rail franchising was announced on 26 March. The comprehensive schedule included the intention to return the inter-city east coast franchise to the private sector by February 2015, and that remains our policy.

[Jenny Chapman]

The east coast main line will have returned £800 million to the Exchequer by the end of this financial year. Are not the Government taking us from a position in which the line subsidises taxpayers to one in which taxpayers, through their fares, will subsidise shareholders?

[Mr McLoughlin]

I am guided by the words of the last Labour Transport Secretary, who said:

“I do not believe that it would be in the public interest for us to have a nationalised train operating company indefinitely…because of our recent experience of rail franchising”.—[Official Report, House of Lords, 1 July 2009; Vol. 712, c. 232.]

He said that when he held the job that I hold now, and I think he was right.

[Andrew Bridgen (North West Leicestershire) (Con)]

The east coast main line has benefited from major improvements over the last 20 years. Will my right hon. Friend assure me that the Government will not neglect the need for future investment in that important route, notwithstanding the huge amounts of money that are being sucked into the doomed HS2 project?

[Mr McLoughlin]

Huge investments are being made in the east coast and, indeed, a number of other railway lines. Our package of rail investments between 2014 and 2019 will lead to the largest-ever electrification on our railways. The Chancellor confirmed that and further investment in the railways yesterday.

[Phil Wilson (Sedgefield) (Lab)]

I refer the House to my entry in the Register of Members’ Financial Interests.

I support the HS2 project, but because that network will not extend to the north-east of England, there will still be a need for investment in the east coast main line. One option, under the intercity express programme, is the building of a further 270 carriages at the Hitachi factory in Newton Aycliffe. Will the Secretary of State agree to that? It would constitute an investment in sustainable jobs, and an investment in the long and proud tradition of train building in the United Kingdom.

[Mr McLoughlin]

I welcome Hitachi’s investment at the Newton Aycliffe site, following a £4.9 billion contract that it has already won for refurbishment of IEP trains. The Department is currently considering other proposals. Huge investment is being made in all our railways, partly as a result of the huge increase in the number of people who use them.

[Sheila Gilmore (Edinburgh East) (Lab)]

Q12. During a debate in the House last Thursday, the Minister of State acknowledged that investment in infrastructure and rolling stock for East Coast would be financed by the taxpayer, but that there would also be some private investment. Perhaps—

[Sheila Gilmore]

What additional investment does the Secretary of State see privatisation bringing?

[Mr McLoughlin]

I simply say to the hon. Lady: look at what has happened since privatisation—and, indeed, all the current franchises in operation were let by the last Government.

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

At the previous Transport questions the Minister of State said on East Coast that

“the involvement of the private sector means that we can increase, over and above the taxpayers’ money, the money that can be invested”.—[Official Report, 25 April 2013; Vol. 561, c. 995.]

Yet he has now admitted to me in a letter that the investment

“comes from an increase in the value of Network Rail’s regulatory asset base”,

and he says

“it is through private sector operation that we can best realise the benefits of the planned investment.”

Why does the Secretary of State not now just admit to the House that his Minister was wrong?

[Mr McLoughlin]

No, what my right hon. Friend said was absolutely correct. We are seeing huge investment in the railways and, as I said just a few moments ago, all the franchises currently in operation were let, and endorsed, by the last Government.

[Maria Eagle]

The fact is that the Secretary of State’s policy does not bring in any additional investment and is costing taxpayers, with millions of pounds paid to train companies to extend contracts so we can focus on East Coast. He claimed West Coast is paying more money back to the taxpayer than East Coast: it is not. He said Lord Adonis backs his plans: he does not. He says they are vital to bring in investment: they are not. Is it not the case that, one by one, his arguments for this costly and unnecessary privatisation have fallen away?

[Mr McLoughlin]

It is wrong to draw direct comparisons between one company and another. East Coast uses older rolling stock, which is cheaper to rent than the Pendolinos used by West Coast, so I do not acknowledge what the hon. Lady says. What I do acknowledge is that there has been huge growth in the railway industry since privatisation. That has been brought about in the main by competition between the different rail-operating companies—something that the last Government endorsed throughout the entire 13 years when they had the power to change any of these things.

[Mr David Ward (Bradford East) (LD)]

7. What progress he is making on approving schemes under the local pinch point fund.

[The Secretary of State for Transport (Mr Patrick McLoughlin)]

From the local pinch point fund, I have announced 72 schemes across the country that will benefit from £190 million of Government funding. Together with third-party contributions, including from the private sector, over £300 million will be invested as a result of that fund.

[Mr Ward]

I thank the Secretary of State for his answer, and for the welcome infrastructure investment, particularly in commuter routes. Despite the fact that in Bradford people are either travelling up a hill or are just about to do so, cycling is very popular. Every day tens of thousands of people travel from Bradford to Leeds and from Leeds to Bradford. Can the Secretary of State give me any information about the “highway to hell”, the proposed scheme for the cycling superhighway between Leeds and Bradford?

[Mr McLoughlin]

I am always keen to look at schemes that help cyclists, including by increasing their safety. A number of schemes are currently before the Department, and I hear what my hon. Friend says in support of that bid, but I have to say there are bids from a number of colleagues for these schemes.

[Iain Stewart (Milton Keynes South) (Con)]

I thank my right hon. Friend for the approval given for the improvements under the fund to the A421 in my constituency. May I ask what his hopes are for the future scope of that fund, so we may, perhaps, bid for further schemes on the A421, including at the western edge of my seat leading into your constituency, Mr Speaker?

[Mr McLoughlin]

Well, Mr Speaker, I do not think I want to prejudge any future schemes that may or may not be developed. What I would like to point out is that we announced the local pinch point fund last year, and it has been incredibly successful. We had more bids than we had money available for it. Although I am mindful of that, I will see what else can be done. However, as a result of the Chancellor’s announcements yesterday and the statement shortly to be made by the Chief Secretary, there will be huge investment in our roads, which is much needed.

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[Simon Wright (Norwich South) (LD)]

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

[The Secretary of State for Transport (Mr Patrick McLoughlin)]

Since I last addressed the House, I have been able to announce the full programme of local pinch point schemes, benefiting from £190 million of capital funding from the Government. Recognising the crucial role that such capital investment plays in unlocking growth, my right hon. Friend the Chancellor of the Exchequer yesterday announced a 5.5% real-terms increase in the Department’s capital budget.

The Government have also this morning published the complete road casualty statistics for 2012. I can tell the House that in 2012 the number of reported deaths on our roads fell by 8% to their lowest level since records began in 1926. This is welcome news. However, we cannot afford to be complacent. The number of cyclist fatalities increased by 10% within the year, underlining the importance of our continued work in making cycling safer.

[Simon Wright]

Norwich is one of the country’s leading cycling cities, with one in five adults cycling at least once a week. The city has ambitions to double this figure in the next 10 years, and Norwich’s bid for city cycling ambition funding would go a long way to achieving that aim. May I urge the Secretary of State to back the bid and inform me when he intends to make an announcement?

[Mr McLoughlin]

I welcome Norwich’s ambitious plan to double the number of adults cycling over the next 10 years. An announcement on the successful cycling ambition grant bidders will be made as soon as possible, but as I said in my opening statement we cannot be complacent about cycling safety. I look to the increasing interest in the House in this subject and I will consider what else the Department can do.

[Lilian Greenwood (Nottingham South) (Lab)]

Will the Secretary of State introduce new legislation to improve the regulation of level crossings before the end of this Parliament?

[Mr McLoughlin]

I will certainly consider what the hon. Lady says about level crossings. I have had conversations with Network Rail about what we should do about them. I will look at whether legislation is the right way to go or whether we already have the powers to get things put right.

[Mr David Ward (Bradford East) (LD)]

T5. My constituents face some of the highest car insurance premiums in the country. I am aware that many Departments have to be involved in this, but will the Minister reassure me that dealing with this terrible issue remains a top priority?

[Mr William Bain (Glasgow North East) (Lab)]

T2. In the past few years, rail fares have been rising almost three time as fast as wages, and are among the most expensive anywhere in Europe. What will the cap be on regulated rail fares by franchised rail operators in the 2015-16 financial year?

[Mr McLoughlin]

With the help of my right hon. Friend the Chancellor, we have capped the overall increase in regulated fares to RPI plus 1. I am very aware of the pressure of rail fare increases that passengers face, and so are the Government.

[Harriett Baldwin (West Worcestershire) (Con)]

T6. This week, a private developer announced plans to invest £400 million in private housing in Worcestershire; it is also going to help with the dualling of the southern link road. Will the Department commit to working with my county council to ensure that we use the opportunity to unlock further investment in Worcester Parkway station and a new bridge across the River Severn to the heart of cyber valley in Malvern?

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[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

T3. Last Friday, many hon. Members from across the north-east went to their local East Coast rail station to highlight the planned privatisation. At Newcastle Central station and elsewhere, the support for East Coast’s remaining in the public sector was overwhelming, and that has since been emphasised by many letters and e-mails. So why is the Secretary of State ignoring the views of those who use East Coast rail and pressing ahead with a costly, wasteful, unnecessary and ideological privatisation?

[Mr McLoughlin]

As I have said many times, if it is ideological, it must have been the ideology of the previous Government, because that is what the former Transport Secretary and the former Chancellor said should happen. It is not ideological; it is about getting the best service and making sure we get long-term planning on the east coast main line. I believe that we will get a better service because that planning for the future will take place.

[Stephen Gilbert (St Austell and Newquay) (LD)]

T7. Forget high-speed rail; in south-west England and Cornwall, we welcome average-speed rail, reduced fares and wi-fi on long-distance services. What progress is being made?

[Mr McLoughlin]

I was down in the west country—the Cornwall and Devon area—just a few weeks ago. I fully recognise the importance of mobile services for the travelling passenger and I am keen to see improvements made. We are discussing with First Great Western how to deliver better services to the hon. Gentleman’s constituents.

[John Robertson (Glasgow North West) (Lab)]

T4. Following on from the question asked by my hon. Friend the Member for Glasgow North East (Mr Bain) about fares, in a recent poll by Passenger Focus only 42% of passengers were satisfied with the service they were receiving. Exactly what is the Minister going to do to improve that? Might it not be time for us to freeze fares until people are satisfied with the service?

[Mr McLoughlin]

The Opposition have to decide whether they want investment to continue at the levels that we are putting in to the railways. If they do, it has to be paid for. I believe the cost has to be shared between taxpayers and those who use the services. I make no apology for the amount of investment that this Government are putting in to Britain’s railways. It is desperately needed and the right thing to do, but it has to be paid for.

[Mr Alan Reid (Argyll and Bute) (LD)]

T9. I am pleased that in recent years the volume of freight being carried on our railways has increased, and it is important that that welcome trend continues. What plans do the Government have to encourage as much freight as possible to transfer from road to rail?

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

Does my right hon. Friend the Secretary of State accept that the transformation of the passenger experience at Stansted airport needs to be matched by a transformation in the time it takes to get to Stansted airport, specifically an improvement on the 51-minute journey, which I understand he undertook a week ago?

[Mr McLoughlin]

My right hon. Friend is right. As he knows, I was at Stansted last week and saw at first hand the subject of his representation and his call for greater investment in Stansted airport. I would like to discuss that with him and think about it with Network Rail.

[Valerie Vaz (Walsall South) (Lab)]

T10. Stafford road and Stanhope way in my constituency are in a state of chaos owing to unco-ordinated bus services using narrow residential roads. What plans does the Minister have to look at the strategic co-ordination of bus services outside London?

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[Ian Lavery (Wansbeck) (Lab)]

Earlier this week statistics were released suggesting that in London, transport spending per head of population is 520 times more than in the north-east region—£2,700 in London, compared with a measly £5 in the north-east. What is the Secretary of State going to do to ensure a fairer distribution of transport finances to the north-east region?

[Mr McLoughlin]

It is right that there has been large capital investment in London. Building Crossrail was the right thing to do. It was long overdue and it is now being built. It is currently the largest construction project anywhere in Europe. But I also think we must get the balance of transport spend right, and that is partly why HS2 is an important means of spreading those benefits. I very much bear in mind the points that the hon. Gentleman makes. As I pointed out to one of his hon. Friends, we are spending £4.9 billion on the intercity express programme for new trains for the north-west and the south-west.

The Leader of the House was asked—