Lord McLoughlin
Main Page: Lord McLoughlin (Conservative - Life peer)Department Debates - View all Lord McLoughlin's debates with the Department for Transport
Cost of Public Transport
Lord McLoughlin Excerpts(8 years, 11 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Lilian Greenwood
The hon. Gentleman should think about the powers that local authorities have to enable them to make effective choices on behalf of passengers, and that is what I intend to talk about.
While fares continue to rise and routes are cut, some of the biggest bus operators report profit margins of 13% or more on their operations outside London. What was the response of Conservative Ministers? For four years they ignored the calls for reform from Labour Members. I am proud of the fact that Labour has consistently championed the case for bus tendering, but Ministers rigged funding awards to exclude local authorities that pursued regulation, and, shamefully, they remained silent when councillors were subjected to appalling abuse and called “unreconstructed Stalinists” just because they were trying to deliver better services.
While the Treasury’s decision to accept the case for bus tendering is welcome in principle, as is the Transport Secretary’s Damascene conversion, we must question the sincerity of that commitment, and the test will come in the forthcoming buses Bill. Will the Bill make those powers available to all areas that want them, not just to authorities that have reached a devolution agreement? Will it contain measures to protect rural bus services, which are particularly important to those communities, and which have been hit by some of the highest fare rises in the country? Will it protect transport authorities from crippling compensation claims?
The Nexus quality contract scheme boards said that the authorities should have set aside up to £226 million to compensate existing operators for the potential loss of business. If those payments were replicated in Greater Manchester, the Sheffield city region and the north-east, a key northern powerhouse commitment would never get on the road—not to mention the effects on Cornwall and other areas that have sought bus-tendering powers.
The bus market is costing too much and is not delivering for passengers, and we have seen the same trend on our railways. Commuters’ fares have gone up by a quarter since 2010, with season tickets costing up to £2,000 more. Ministers restored the loophole known as flex, which gave the train companies the right to vary prices by up to 5% a year, meaning that the cost of some season tickets has risen by up to 38%, and evening fares in the north have been hiked by up to 162% at the direct insistence of the Department for Transport.
The Secretary of State for Transport (Mr Patrick McLoughlin)
Will the hon. Lady remind the House how many years flex was not available for when the last Labour Government were in office? Am I correct in thinking that it was just one year—the year of the election?
Lilian Greenwood
The Labour party scrapped flex permanently, and it was the Secretary of State’s Department that chose to reinstate it, as well he knows. It was only as a result of concerted pressure by Labour Members that this Government dropped it over the past two years.
As I was saying, evening fares in the north have been hiked by up to 162% at the Secretary of State’s direct insistence. The Department’s own McNulty review has warned that our fragmented railways have a ticketing system that
“is complex, often appears illogical and is hard for the uninitiated (and even the initiated) to understand.”
There is also an efficiency gap of up to 40% compared with the best performing European operators, which is wasting money that should be used to address the rising cost of travel and to fund investment.
At the last election we were promised part-time season tickets, and a pilot by Southern Railway found that they could save some commuters 50% of the cost of their travel. However, the smart ticketing programme that underpins the system is 78% over budget and delayed by three years, and there are rumours that it could be cancelled. Will the Secretary of State tell us today whether the south-east flexible ticketing programme is being dropped?
Ministers might claim that services are getting better for everyone, but I urge them to mind the gap between their rhetoric and reality. We all remember the Under-Secretary of State for Transport, the hon. Member for Devizes (Claire Perry), saying that rail passengers had to realise that they were paying
“fair fares for a comfortable commute”.
The Secretary of State for Transport (Mr Patrick McLoughlin)
I welcome the debate and I know that the hon. Member for Nottingham South (Lilian Greenwood) cares very much about the subject. She has worked with us on the Bill for HS2, which is making good progress, and I thank the Opposition for their support on that vital project.
I also thank everyone in all parts of the transport industry who has been out this winter responding to the floods. It has not been easy, but good progress is being made. I was in Cumbria for the second time last week to see it at first hand. Over the Christmas period, Network Rail also successfully carried out its biggest ever works as part of the railway upgrade plan that is so essential to the future of the British rail industry. I pay tribute to the thousands of staff who gave up their Christmas to improve our railways.
Today, the hon. Lady asks about transport costs, and I am pleased she does. After all, the Opposition should know all about them, because when they were in office rail fares soared. In their last full year, regulated fares increased by up to 11% and between 2004 and 2010 they went up by about 4% a year—a total increase of some 26.4%. We have kept increases down. They have dropped steadily over the past five years and we have frozen increases at inflation for the whole of this Parliament, a promise made in our manifesto and kept in government, saving more than a quarter of a million season ticket holders an average of £425 over the next five years.
The Opposition should also know about the cost of driving. Fuel prices are down by almost 16% in real terms since 2010 and we abolished a number of the increases that were going to take place under the Labour Government.
Alec Shelbrooke (Elmet and Rothwell) (Con)
Despite all the howling we have just heard from Opposition Members about oil prices, was it not the Opposition who wanted to freeze energy prices?
Mr McLoughlin
I am going to say a bit more about their record in government; I am not sure that I want to say too much about their record in opposition.
Mr McLoughlin
Three Members are trying to get me to give way, Mr Deputy Speaker, but I am mindful of the short time for this debate, and I am very sorry about that. I will take an intervention from the hon. Member for Streatham (Mr Umunna), but then I will make progress.
Mr Umunna
Does the Secretary of State think that the cost of £964 for a season ticket from Streatham Common to London Victoria is good value for money in the light of the recent service that my constituents have been subjected to by Southern Railway? Will he give serious consideration to the breakup of the Govia Thameslink Railway franchise, which is clearly too big and too complex?
Mr McLoughlin
I will want to say something about the works on the rail network. The amount of work that is taking place will lead to some disruption but eventually will lead to a much better service for the hon. Gentleman’s constituents. The huge investment in London Bridge, for example, will cause disruption while it is taking place. I wish that that was not necessary, but people will get a much better service than they had before those improvements.
Mr McLoughlin
I want to make some progress.
Fuel prices are down by nearly 16% since 2010. The cost of driving licences has been reduced, the cost of the theory test is being cut and we have taken action to bring down the cost of car insurance as well.
There is another thing that the Opposition do not like talking about—the cost to our country of lost investment when they were in office, and the cost to jobs, businesses and growth. Britain slipped from 7th to 33rd in the World Economic Forum’s infrastructure league table when they were in government. They cancelled more than 100 major road improvement projects and did not invest when they had the chance. They electrified just 10 miles of railways, less than one mile a year. I was going to say that it was a snail’s pace electrification, but I have checked, and that would be unfair to snails. They go faster than the previous Labour Government went on electrification. No Conservative Member will take lectures from the Opposition about electrification. They did not invest, and they made the task of rectifying their mistakes much more of a challenge. The real benefit cannot be felt until all this vital but disruptive work is completed. No wonder Labour has been so reluctant to debate transport in this House. The shadow Secretary of State’s immediate predecessor did not even have a debate on transport. In fact there have been only three debates on transport since 2010. That is obviously because the Opposition are so embarrassed by their own record, and so impressed by our record.
The shadow Secretary of State has served on the Opposition Front Bench on transport since 2011. She is the fourth shadow Secretary of State I have faced across the Dispatch Box, and in that time there have been about as many changes in opposition transport policy as there have been shadow Secretaries of State.
Mr Cunningham
I thank the right hon. Gentleman for giving way; I notice he has been avoiding me for the last five minutes. Will he have a look at the use of senior citizens cards, particularly in respect of certain rail companies? As I said in an intervention on my hon. Friend the Member for Nottingham South (Lilian Greenwood), some people badly need them; they do charity work and they need to come to London, but not at the times when senior citizens cards can be used. Will he have a look at that, and the different franchises and different uses?
Mr McLoughlin
I know the hon. Gentleman will want to support me wholeheartedly on creating more capacity. One way we are going to do that is by building HS2, which in the past he has not been quite so supportive of. It is very important that we look at these things, however, and of course I will look at the points he makes.
Mr McLoughlin
I really do need to make progress.
The shadow Secretary of State used to be in favour of rail franchising, but now she seems to be against it, although it is interesting to note that her party’s candidate for Mayor of London is apparently so keen on it that he wants Transport for London to bid for contracts in the private sector. In 2014, the shadow Secretary of State got one of our great private companies, Stagecoach, to sponsor her Christmas cards. I did not get one in 2015. Maybe this time it was sponsored by the RMT instead, because these days Labour has only one policy on transport: turn all the signals bright red—a policy that is going nowhere from a party that is getting nowhere.
Now of course the Labour party wants to impose yet another cost on hard-working people: the cost of strikes. We heard not a single word from the hon. Lady in her speech about the planned strikes next week on the underground—a party that will not even stand up for Londoners when the unions carry out a selfish and irresponsible strike. Well, this Government clearly stand on the side of Londoners and those who work in London. Will the hon. Lady condemn the planned strike on the underground? I will give way to her if she will. Will she condemn it? Silence. She is probably under orders from the shadow Chancellor to join the picket line, or does she agree with the Labour peer Lord Mendelsohn? My hon. Friends may not have heard this: Labour peer Lord Mendelsohn said strikes would be “economically efficient” because some travellers would discover better ways into work. That is Labour’s new policy: a strike that aims to stop Londoners getting new and better services.
Transport is central to Britain’s economy, and because we are dealing with the decline and deficit the Labour party left behind, we can afford to invest for growth. That means more jobs, more homes, and more businesses using our transport system, and more people too. Last year it carried more people than ever in its history: there were 1.65 billion journeys on the railway network, 316 billion vehicle miles on our roads, and over 1.3 billion journeys on the tube. This year, it will break that record again. That is why we are widening roads, building railways, opening up opportunities: a massive programme is under way now that means building Crossrail, completing Thameslink, electrifying the northern hub, starting HS2, record investment in local roads, setting up an independent National Infrastructure Commission under Lord Adonis, and getting on with the £15 billion road investment strategy, including the A358 and A27 that Labour pledged in its manifesto to cancel. There is £38.5 billion of investment in our railways, and 30% more on enhancements than Labour spent previously.
Oliver Colvile
May I remind my right hon. Friend that, during the election, the Labour party said it would cancel the A359 work? I did not hear how this would all be paid for, which I was told clearly to listen out for.
Mr McLoughlin
Indeed, the Opposition said they would take those roads out of the roads investment strategy.
Through our careful custodianship of the economy, we can afford to invest in the future. That is why some 4,000 new rail carriages for the national network are now on order, with most being built in Britain.
The hon. Member for Nottingham South talked about the need to help people up and down the country with transport costs, and I agree with her. That is why we are investing. In Nottingham, we have spent £150 million widening the A453, speeded up trains and rebuilt the station at a cost of more than £100 million, and extended the tram with a contribution of more than £370 million. That is more in six years for the people of Nottingham than in the previous 13 years of Labour government.
I welcome the hon. Member for Middlesbrough (Andy McDonald) to the Opposition Front Bench. I hope he lasts longer in the job than his predecessor, which will let him see the benefits of our investment in his constituency, including new intercity express programme trains, direct services from London on Virgin Trains East Coast, the removal of Pacer trains from the network and an upgrade to the A19 close by. I could go on. Other members of the Front-Bench team will benefit, too, with a £1.5 billion investment for the A14 and new Thameslink trains serving Cambridge, while Birmingham already has the upgrade to New Street station, services on Sunday from Longbridge and the M5 smart motorway programme.
That is the choice: under Labour, the cost of travel goes up and the cost of lost investment goes up too; under us, rail fares are capped, fuel prices go down and investment goes in.
Andrew Percy
My right hon. Friend knows that we in the Humber got the fluffy end of the lollipop under the last Government. The Humber bridge toll has been halved and we have got rail electrification and a number of road projects. On the subject of the cost of bus passes, will he acknowledge the incredible work done by Conservative North Lincolnshire Council, which reversed the 500% increase in the price of post-16 bus passes, cutting the cost from £180 under the Labour party to £30 under the Conservatives?
Mr McLoughlin
My hon. Friend clearly shows that Conservative councils choose priorities to help local people and make sure the investment goes straight to the frontline. I congratulate the council in his area on doing that.
Mr McLoughlin
If my hon. Friend will forgive me, I am mindful of the time. I know other hon. Members wish to speak, and I understand that there is to be a very important maiden speech.
On the east coast line, Virgin is bringing 23 new services a day from London, with more than 70 extra stops at stations. The hon. Member for Nottingham South is against that. There are plans for new direct services to Huddersfield, Sunderland, Middlesbrough, Dewsbury and Thornaby, and more trains to London from Bradford, Edinburgh, Harrogate, Leeds, Lincoln, Newcastle, Shipley, Stirling and York. That is our plan to build for the future and support our great cities, too. Under this Government, that means city deals, new mayors, growth, a northern powerhouse and a transformation of the railways in the north.
In 2004, when Labour was in charge, it let the franchise for Northern rail on a zero-growth basis. That meant no investment, while fares were allowed to rise. It was a disgrace. Perhaps the hon. Lady would like to apologise for the consequences. The cost was no new trains and massive overcrowding, with people expected to travel on worn-out Pacers. Just before Christmas, the Government let new franchises for Northern and TransPennine that will result in a £1.2 billion boost to rail services, 500 new carriages, 40,000 extra spaces for passengers and free wi-fi on trains and in stations. No wonder local Labour politicians in the north were lining up to praise the move. Liam Robinson, chairman of Merseytravel, said it was a “big step forward” and would “drive up standards”. Labour councillors including Peter Box, Richard Leese, Keith Wakefield and Nick Forbes praised the impact of devolution to Rail North. The RMT commented too, describing it as a “bitter blow”. Who does the hon. Lady agree with? Would she have signed that franchise contract—yes or no? Would the Opposition have walked away, leaving the north with nothing, just like they did last time? We bring the private and public sectors together in partnership, backing better services and growth.
The hon. Lady mentions buses. I am not clear what she wants. Does she want to nationalise them too? We are going to legislate so that cities can help shape their bus networks, working with the private sector. While her party was in office, bus use outside of London fell by 8%. In 2010 only 25% of buses outside London could take smart cards; now 89% can. Compared with 2010, buses are safer, with more CCTV, and they are busier and more accessible. The Government are supporting the vital work done by community transport organisations with a scheme to help them buy new minibuses. We have taken tough decisions on the economy, but protected concessionary travel across the country.
On road travel, we have reformed Highways England and set out the first-ever long- term investment programme. We are investing in local roads, with a record £6 billion of funding to tackle the menace of potholes, and a further £475 million for the larger road schemes that some towns so desperately need. On cycling, which the Opposition did not even mention in today’s motion, we have increased spending from the £2 a head that we inherited in 2010 to £6 a head today, and we will go further still.
That is the investment we need to help cut the cost of transport. We are getting on with Crossrail, which is on course to open two years from now. We are getting on with HS2, with construction starting in less than two years from now. A new National Infrastructure Commission has been established. Record investment is taking place and rail fare increases have been frozen in line with inflation. Transport is transforming our country, whereas Labour wants to go back to an age when train use fell, fares went up and investment was cut. This Government are optimistic about rail, roads, buses, cycling, and more importantly the British people. We are going to be trusting. We are going to see investment at a record level, which will be good for our cities and for our country right across the transport network. I urge the House to reject the motion.
Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)
I echo the sentiments of the Secretary of State regarding the staff who worked in the floods and the inclement weather over the Christmas and new year period on all networks to keep us moving and to help passengers as they travelled.
A debate on public transport is welcome. People need effective, regular and affordable public transport. In a debate such as this, they would expect the issue to be moved forward, although I am not sure they would have had that impression from the opening exchanges. Public transport is close to my heart and that of many of my hon. Friends. My constituency, in common with many of theirs, is mostly a rural community. Scotland has diverse public transport needs. Some places in Scotland and in other nations of the UK have no public transport—people can only use their cars, so it is not just the cost of public transport that matters to them, but the cost to the public of transport.
The motion could have benefited from the inclusion of other forms of transport that people need—and, indeed, rely on—in Scotland. For example, we do not see aviation as anything other than public transport. That is what it is. Marine transport is very important to us, and ferries are public transport too. As the Secretary of State said, the motion could have included public cycling schemes and public costs in relation to roads—tolls, for example. The need for major UK infrastructure projects to give proper consideration to Scotland could be debated. The debate could have been more inclusive and served a common purpose. It could have been more positive, seeking to benefit people.
Many local bus services in Scotland receive subsidies to ensure that uncommercial services can continue to operate as a public service. Figures from the House of Commons Library show that from 1995 to 2015, Scottish bus fares went from being 10% higher than those in England to being lower. Since 2007, bus fares in Scotland have risen by 5% less than in England. Since 2010, bus fares in Scotland have risen by 4.6%; in England over the same period, they have risen by 7.0%. The Scottish Government have invested a quarter of a million pounds every year through the bus service operators grant and concessionary travel scheme. That has helped 1.3 million older and disabled people to live more connected, healthier lives.
In aviation, there are direct flights to over 32 countries, and we have the successful ongoing work to improve long-haul connections to Scotland and connectivity through world hubs. We plan to use changes to air passenger duty to improve the situation for the travelling public by reducing their costs, and to help businesses, including in tourism and food and drink, by growing key sectors of our economy and giving better choice to our people. This is all for the people of Scotland. We are working to achieve guaranteed levels of access between Scotland and London. The Scottish Government acquired Glasgow Prestwick airport to safeguard 3,200 jobs and to secure vital infrastructure as an asset that contributes more than £61 million annually to the Scottish economy.
We have invested in roads to ensure that Scotland has a modern transport infrastructure for the 21st century. The SNP Scottish Government have a clear policy against the use of road pricing and tolls, now and at any time in future, and we have abolished all road tolls on bridges in Scotland. We are delivering the £1.4 billion new Forth crossing at Queensferry, which is on track to be completed by the end of 2016—again, with no tolls for the public.
In marine transport, Ministers in the Scottish Government have invested more than £145 million in piers and harbours, with £8.6 million going to Stornoway harbour to accommodate the new Ullapool-Stornoway vessel, MV Loch Seaforth. Since 2007, we have invested almost £1 billion in ferry services, including the road equivalent tariff and six new ferries. That is investment of over £100 million. We have introduced into the network of services operated by CalMac a third hybrid—MV Catriona, which was launched at Ferguson marine shipyard in Port Glasgow in December 2015. On 16 October 2015, Ferguson Marine Engineering Ltd was awarded contracts worth £97 million to build two £100 million ferries with a delivery date in 2017-18. The First Minister of Scotland confirmed just yesterday that Dundee’s central waterfront infrastructure would be the latest Scottish Government project to be delivered on budget and ahead of schedule. This includes a re-rationalised road layout and is part of the £1 billion, 8 km Dundee waterfront project, which will create 7,000 new jobs.
Let me come to the interesting one: rail franchising. On this important issue—the public outside this Chamber will not understand this—Labour Members have chosen to attack the Scottish Government, not the UK Government whom they are supposed to be opposing. Every time they take a wee excursion up the branch line, they end up embarrassing themselves and the branch office in Scotland. Frankly, they are embarrassing everyone. The purpose of opposition, surely, is to build alliances to hold the Government to account. What a missed opportunity! The SNP is the effective Opposition in this Chamber. The Government realise that, which is why they are going at us day after day, every day—they spend more time on us now. Labour Members have deliberately inserted a line in this motion—a complete falsehood, by the way—that makes it impossible for us to support them in the Lobby tonight. Imagine that! People are looking on, and they see this shambles for what it is. They are switched on like never before, and they are continuing to lose respect for Labour, given stunts like these.
Let me tell the House about the Scottish Government and rail policy. The UK Government oversee a perverse system that forbids publicly owned UK bodies to bid on rail franchises while having overseas nationalised services such as Deutsche Bahn or France’s SNCF running franchises in the UK. We believe that public sector organisations should be able to bid to operate rail services, as allowed in EU law but currently prevented by UK legislation. That is a lesson for Labour Members. That approach would enable us to ensure the delivery of all rail services in Scotland and to deliver maximum economic and social benefit for our people.
Labour has used this motion to attack the SNP Government for awarding the ScotRail franchise from 2015 to 2025 to Abellio. Labour knows very well that the Railways Act 1993, enacted by John Major’s Government, specifically forbids UK publicly owned companies from bidding. It is a matter of rhetoric versus record.
Mr McLoughlin
The 1993 Act was indeed taken through by John Major, but will the hon. Gentleman also confirm that in 13 years the Labour party never changed the regulations?
Drew Hendry
The Labour party has put me in the position of having to agree with a member of the Cabinet. Imagine that—what an absolute shambles!
The Labour party spent 13 years in government without ever changing the situation, even though it heavily amended the 1993 Act with the Transport Act 2000 and the Railways Act 2005. Even though it had the power, it did absolutely nothing to repeal the 1993 Act.
This is not the first time we have heard such nonsense from the Labour party. Its leader is not so new to his position now, but not long after taking the leadership he told Marr:
“Listen I’ve been in Scotland a lot of times during the leadership campaign…I’m going to be in Scotland a great deal as leader of the party.”
We shall see whether that happens. He went on to say:
“Yes the SNP have a headline of being opposed to austerity—fine. The SNP are also privatising CalMac, also were behind the privatisation of ScotRail”.
What a pile of nonsense! Like successive Scottish Executives before them, the Scottish Government were simply following the tendering process that they are required to follow in EU law.