Thameslink, Southern and Great Northern Franchise

Lord McLoughlin Excerpts

Monday 24th February 2014 Written Statements

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

On 18 February 2014 my Department announced the successful conclusion of negotiations for the direct award of a new, six-period franchise agreement to First Capital Connect that will see that company continue to provide services from the end of their current franchise on 31 March 2014¹ to the start of the new combined Thameslink, Southern and Great Northern franchise later this year.

Through this contract I have guaranteed services for passengers and ensured that the transition to the new franchise will be as smooth as possible, maximising the value for the taxpayer. This short contract is a key step in ensuring the delivery of the significant £6 billion Thameslink programme, which will transform the lives of rail passengers in the south-east through the delivery of new trains and more capacity, allowing 24 trains per hour through some of the most congested routes in the country.

¹The current franchise expires at 01:59 on 1 April 2014, at the end of the previous day’s services.

Flooding: Transport Disruption

Lord McLoughlin Excerpts

Thursday 13th February 2014 Commons Chamber

[Mary Creagh (Wakefield) (Lab)]

(Urgent Question): To ask the Secretary of State if he will update the House on the transport disruption caused by the floods.

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

In the past two months, Britain has been hit by truly exceptional weather. This has been the wettest January in more than 200 years, and the severe weather is set to continue. From extra pumps and sandbags to military support and emergency funds, the Government are committed to providing all the practical support and assistance that is needed.

Overnight a severe storm, with winds recorded at more than 100 miles per hour, added further to disruption on the transport network, with the railway network particularly badly affected and some motorways closed owing to wind speeds. Network Rail and the Highways Agency have been working through the night to address the damage caused, clearing scores of trees from blocked lines, removing debris from carriageways and tracks, and repairing overhead wires. Let me take this opportunity to thank all those people for their dedication and hard work in the most trying circumstances, and express my sympathy with all those affected by bad weather.

As a result of the repair work overnight, I can provide the following updates for those parts of the transport network affected by the storm. On the rail network, the west coast main line is open, apart from the spur from Runcorn to Liverpool, which is expected to be back in service later this morning. Most of the east coast line is open. Continued work on overhead line damage north of York is placing limits on the service, and trains are expected to run at 80 miles an hour between Newcastle and the Scottish borders until midday. The Welsh routes of Fishguard and Aberystwyth are currently closed as engineers work to clear scores of downed trees.

On the roads, with a few isolated exceptions, we have kept motorways and major A roads running through this unprecedented level of severe weather. Although the hard work of engineers has mitigated the worst effects of the storm, there is no doubt that the transport network has taken a battering over the past week. In Dawlish work continues apace to mend the route between London and the south-west. During my visit on Friday I met south-west MPs and council and business leaders to assess the impact of the severe weather on the region’s transport network and economy. That followed a briefing with local south-west MPs in the House last Wednesday. The collapsed wall has been shored up with material salvaged from the damaged section, and a temporary breakwater made of shipping containers and filled with rubble has been erected off the coast. Removal of the damaged platform continues, and work is estimated to be completed by 18 March.

At Maidenhead the water table is currently 20 metres higher than it would normally be at this time of the year. That has damaged the signalling and had a serious effect on the ability of Network Rail to run trains, with roughly one fifth of services currently running between Reading and Paddington. Network Rail is working urgently to assess the time scale and to repair the signalling. The M2 in Kent is now partially reopened in both directions, with repairs ongoing to the hole in the central reservation.

While we deal with the immediate fall-out from the weather conditions, my Department has announced measures that I believe will make a real impact on the ground. Those include £61 million funding for projects to help repair damaged roads and build greater resilience into our railway network. Yesterday the Government announced funding worth £31 million to pay for rail resilience projects, which includes money to continue the vital work at Cowley bridge in Exeter to improve resilience against flooding. In addition, a further £30 million has been found for road maintenance, including pothole repairs, for local authorities in England affected by the severe weather. That is on top of the £3.5 million from the £7 million flood recovery package announced by the Government on 17 January.

Because we recognise the importance of tourism to the south-west during half-term week, we have worked with the airline Flybe to enable it to double its daily flights between Newquay and London Gatwick. It will increase the number of flights from three to six per weekday, providing more than 4,500 additional seats each week. Flybe has also agreed to keep prices at the same level as before the weather disruption, ensuring that hard-working families are not penalised by the impact of the weather on their travel plans. On Monday this week the Prime Minister also announced a Government subsidy to allow Newquay airport to waive the £5 airport development fee usually charged to those departing from the airport. Together, that package is helping to keep the south-west open for business during these difficult times.

In addition, First Great Western, the rail operator, has put in place a special ticketing arrangement so that rail passengers affected by the flood disruption do not miss out on the cheaper advance fares while revised timetables are in place. That means that passengers will receive a 25% discount on walk-up fares for journeys that cross the Dawlish gap. First Great Western has also ordered hundreds of extra buses to provide alternative transport while the track is repaired.

Although the conditions are unprecedented, particularly because of their severity and sustained nature, it is important that we ensure that our network is resilient in the long term to such threats. The Department for Transport works very closely on resilience with other Government Departments, local authorities, other transport operators and the wider sector. Resilience to extreme weather and climate change also form part of our capital maintenance programme. The Government have asked the industry to build climate resilience into its plans for railway investment for the period between 2014 and 2019. The industry has responded by introducing more specialised equipment and trains that treat rails, and that clear ice and snow or compacted leaves.

We have embarked on one of the biggest programmes of rail modernisation ever. Over the next five years, more than £38 billion will be spent to improve and maintain our railways. Network Rail is developing strategies for securing the long-term resilience of the railways and has asked the Office of the Rail Regulator for nearly £500 million to invest in resilience projects.

On the roads, the Highways Agency has assessed the potential risks that climate change poses to the ongoing operation and improvements to the strategic road network. It has taken action to mitigate and is spending a huge amount a year on maintenance and renewal. Funding for local roads maintenance has increased by £650 million in this Parliament. That figure will increase by a further £500 million to £4.9 billion between 2015 and 2020.

As the Prime Minister said yesterday, we are in for a long haul. I will continue to keep the House updated, but I should at this stage pay tribute, as every Member of the House would like to do, to all those tens of thousands of people who are at the moment doing their upmost to provide services, sometimes in very dangerous conditions. They are trying to do their very best for the travelling public, and we owe them a great debt of gratitude.

[Mary Creagh]

I thank the Secretary of State for his reply. Our sympathy goes out to the families and friends of the three people who have tragically lost their lives in the flooding and storms. Our thoughts are with everyone who has been affected by the flooding.

I echo the Secretary of State’s tribute to the emergency and armed services, council workers, Network Rail, the Highways Agency, the Environment Agency and power company staff who have worked round the clock in very difficult conditions to keep people safe and to restore services.

The Secretary of State mentioned the severe weather in the past week that has caused huge disruption. Rail services on Southern trains, Southeastern trains, South West Trains, First Great Western and Virgin have all been seriously affected, and there is major disruption on the motorway, with the closure of the M2 and regional disruption overnight as trees were brought down by high winds.

The Secretary of State said that First Great Western has suspended its advance ticket scheme on the Dawlish route. Passengers must now pay for expensive walk-on tickets rather than take advantage of lower advance fares. Although the 25% reduction in those walk-on fares is welcome, some passengers must still pay more than £100 to travel from Paddington to Cornwall on rail replacement buses. Does he believe that is fair?

The Tunbridge Wells to Hastings line is shut as a result of landslips and will take several weeks to repair. One route to Exeter is closed with three quarters of a mile of track under water. The Windsor branch line is blocked at Datchet. In Wales, the Cambrian coast rail line has been damaged between Barmouth and Pwllheli—it was damaged in January but will not reopen until mid-May. Network Rail estimates that the cost of repairing that damage will be up to £30 million. What talks has the Secretary of State held with train companies to support passengers who have experienced substantial financial loss as a result of the travel disruption? The damage at Dawlish and Pwllheli alone will cost Network Rail £40 million to repair and Network Rail’s initial estimate of the repair and business interruption costs from flooding over the past two months is now £118 million. How much money has he asked the Treasury for to carry out those vital repairs?

In 2012, an 11-day closure of the Great Western railway line to Exeter caused by flooding was estimated by Cornwall council to have cost the regional economy £140 million. In January last year, the Prime Minister said that

“we will do everything we can to ensure that these important services are maintained, even when they are challenged by floods”.—[Official Report, 16 January 2013; Vol. 556, c. 870.]

Yesterday, the Prime Minister announced that £61 million was being made available by the Department for Transport to finance the repair and rebuilding of transport infrastructure, yet it transpires that £31 million of that money was what he promised to the south-west authorities and MPs last year for resilience repairs around Exeter. Network Rail has spent £5 million on small repair schemes, but the bulk of that £26 million from the Government, promised by the Prime Minister last January, has never been received. Why not? Why did that money failed to materialise in the autumn statement? Did he just forget?

Of the Prime Minister’s £61 million announcement yesterday, it transpires that the £30 million for council road repairs was actually announced on Monday by the Secretary of State for Communities and Local Government. Will the Secretary of State confirm that the Prime Minister’s announcement yesterday was a rehash of old announcements and included not one penny of new money for the urgent rail repairs that are needed across the network? Will any additional money be made available to Network Rail for repairs to damaged transport infrastructure? Will any additional money be provided to improve transport infrastructure flood resilience?

The Government need to speak with one voice and their response needs to be speedier than it has been in the recent past. The Select Committee on Energy and Climate Change has warned that flooding is the greatest risk our country faces from climate change. The Prime Minister has said that “money is no object” and the Secretary of State has said that there is no blank cheque. Who is right? Communities and commuters face long weeks, potentially months, of transport disruption. They need leadership and clarity on what help they can expect and when. When will they get it?

[Mr McLoughlin]

In my answer, I tried to be open with the House on all the problems being faced by passengers and our constituents across the country. I do not think it helps when the Opposition try to suggest that money is not available. When I was here last Thursday, I was the one speaking up for all the passengers who were being inconvenienced by strikes that the Opposition were deliberately incredibly quiet about. I need no lectures on speaking up for passengers and the people who use our public services.

As far as money and investment is concerned, the simple fact is this: as the Prime Minister has made absolutely clear, there is no limit to the amount of money that the Government are providing for immediate flood relief. We will do everything we can to help those people who are very badly affected and will be affected for months to come. That is a commitment from the whole of the Government: the Government certainly speak with one voice on this subject.

I also point out very clearly that, between 2014 and 2019 in the next round of investment in the railways cleared by this Government, we will see record sums invested in our railways. Indeed, as part of the investment programme, a tunnel that is very important for the south-west, has just been relined. A lot of the money we are talking about—the £850 million being spent on Reading station—is all about improving resilience in the long term. A lot of the money being spent by Network Rail over the next five years—[Interruption.] The hon. Member for Blackpool South (Mr Marsden), like a parrot, keeps saying, “It’s not new money.” The simple point is that it is new money. It is the £38 billion that we are going to invest in Network Rail over the next five years. It is important, too, and represents a record level of investment—a level of investment never reached by the previous Government when there was plenty of money available. When the buckets were overflowing, they did not invest in our infrastructure; we are investing in it, rebuilding the British railways, and the roads as well.

[Mrs Cheryl Gillan (Chesham and Amersham) (Con)]

I would like to associate myself with the remarks of both Front Benchers about the victims and those people working around the clock to help people in trouble. I also congratulate Ministers on getting a grip of this situation and offering support wherever they can.

Following the flooding in 2008, the UK received about £127 million from the EU solidarity fund, which, in exceptional circumstances, can be used for regional disasters to help with clear-up work and infrastructure restoration. Our Welsh Conservative MEP, Dr Kay Swinburne, has been calling on the Government to co-ordinate with the Welsh Government to unlock funds from the solidarity fund in particular. Will my right hon. Friend work with Dr Swinburne, the Welsh Government and other parts of the country to ensure we unlock the maximum amount of money from this European fund during these terrible times?

[Mr McLoughlin]

I can reassure my right hon. Friend that this matter was discussed last night in the Cobra meeting, and my right hon. Friend the Minister for the Cabinet Office and Paymaster General is looking at all the avenues for collecting any money that might be available.

[Alison Seabeck (Plymouth, Moor View) (Lab)]

What work is the Secretary of State doing with other Departments to make an economic assessment of the loss of the rail network, both in the south-west and across the country? It is important that that work is co-ordinated.

[Mr McLoughlin]

The hon. Lady, along with council leaders and leaders of the local enterprise partnership, met me last week when I was down in Plymouth. I told them, following my statement in the House last Thursday, that I would want to look at the long-term resilience of the south-west—that is very important—but when we get a storm of the nature of last night’s, it is not just the south-west we need to consider, so we need to investigate what she says further and more wholly. She has made her case for the south-west, and I will certainly work with her and other Members who attended the briefing—unfortunately I could not attend because I was preparing for the urgent question—held by the Under-Secretary of State for Transport, my hon. Friend the Member for Wimbledon (Stephen Hammond), just before this sitting.

[Mr David Heath (Somerton and Frome) (LD)]

The Great Western railway is effectively out of action and many of our roads are under water. This clearly demonstrates the vulnerability of the west country to weather conditions and our lack of resilience. Will the Secretary of State consider carefully the need to provide alternative main line railway routes into the west country and also look at the road situation, because at the moment we are dependent on the M5 and the totally inadequate A303?

[Mr McLoughlin]

I understand the points my hon. Friend is making. There are a few things we need to do. First and foremost, we need to reassure people that the south-west is open for business and that the road network overall is working well. This morning, I had a meeting with the country’s main coach operators about their laying on extra services, which they are doing, and as we approach next week’s half-term holiday, and the Easter break as well, people and businesses in the south-west want to get the message out clearly that they are open for business and that the south-west is not a closed area; and certainly the road network gives us that option.

On alternative routes, I want to see the Dawlish route reconnected as soon as possible—Network Rail estimates it will take six weeks, once it starts construction properly, to re-establish the line—but my hon. Friend is right that we should look at the lines that have been closed. It is not the fault of this Government, or even the last Government, that they are closed. Since 1965, successive Governments have seen development take place over some of these lines.

[Sheila Gilmore (Edinburgh East) (Lab)]

I am sure that the Secretary of State will join me in praising the work of East Coast staff who dealt with customers stranded on the Yorkshire moors last night.

When the Secretary of State and his team give figures on the late running of East Coast trains, will they attempt to differentiate in respect of the weather problems over the past two years—they have not occurred only this month—and will they not blame East Coast for them?

[Mr McLoughlin]

There can be many reasons for train delays, and sometimes they are completely outside the control of Network Rail or the rail operators. I readily accept that point. Some of the problems faced by operators, even leaving aside exceptional storms, are completely outside their control.

[Mr Simon Burns (Chelmsford) (Con)]

Conservative Members welcome the decisive action of the Prime Minister and the Department for Transport in seeking to tackle the immediate problem and the extra money made available to repair the network. However, will my right hon. Friend accept that the important thing over the longer term will be greater resilience and improvement to the whole rail network? Will he confirm that the £38.5 billion for greater resilience to be made available over the next control period will exclude the additional money for High Speed 2?

[Mr McLoughlin]

I am grateful to my right hon. Friend, who knows better than most the immense work going into improving resilience. Not long after I was appointed to this post, I went to Shugborough tunnel, which was closed over the Christmas period as it was being relaid; about £3 million was spent on getting the rails up and putting new drainage in. The works meant that trains could run through the tunnel at 125 mph rather than 50 mph. Nobody will have seen that £3 million being spent but it was one part of the very many things going on across the whole rail network that improve the facilities and services for our constituents.

[Huw Irranca-Davies (Ogmore) (Lab)]

As the Secretary of State will know, if there is genuinely new money, there will be discussions about the Barnett consequentials. Are such discussions going on? If he cannot reveal a figure, will he at least confirm that the announcements over the past couple of weeks have been about new money? If so, there will be Barnett consequentials.

[Mr McLoughlin]

Network Rail serves Wales as well, so Wales will get its share of the money that Network Rail is investing in the whole railway structure.

[Anne Marie Morris (Newton Abbot) (Con)]

I thank the Secretary of State for his support for and visit to Dawlish; they were very much appreciated by one and all. I join him in thanking Network Rail. I also thank my local council and volunteers who did a sterling job in extremely difficult circumstances.

As the Secretary of State has seen for himself, the line is crucial not only to my constituency but to others further south-west. The local economy depends on it. Can he assure me that he recognises that and that he is committed to ensuring that the line is sustainable for the long term and to researching what needs to be done to make it truly resilient?

[Mr McLoughlin]

I can certainly give my hon. Friend a promise about the commitment that she seeks; the hon. Member for Somerton and Frome (Mr Heath) also asked the question. I know how important the main line to Dawlish and my hon. Friend’s constituency is. The other thing that we need to consider is whether we can build in better resilience than went into the wall when it was first built more than 100 years ago.

[Mr Jim Cunningham (Coventry South) (Lab)]

Has there been any major damage to the west coast main line and will the Secretary of State invest any new money into it? Will he also find out why there are regular hold-ups on that line between Birmingham and Euston?

[Mr McLoughlin]

One of the reasons why there might be regular hold-ups was pointed out by my right hon. Friend the Member for Chelmsford (Mr Burns) a moment ago: the question of capacity on that line. The hon. Gentleman will remember that the west coast main line saw investment of more than £9 billion, all north of Rugby. That went some way towards improving certain bits of the line’s capacity, but it did not improve the capacity into London.

[Miss Anne McIntosh (Thirsk and Malton) (Con)]

I thank the Department for the work it is doing. I understand that the East Coast trains were rescued by diesel trains following the catastrophic failure. Will the Secretary of State give the House an assurance that there will always be a fleet of diesel trains to use in scenarios such as these?

--- Later in debate ---

[Mr McLoughlin]

I might just want to think a bit more about promising that there will always be diesel trains. We are investing a huge amount of money in the new intercity express programme trains to serve on the east coast route. I cannot give my hon. Friend an absolute commitment at the Dispatch Box today, but I will certainly investigate the point that she has made.

[Wayne David (Caerphilly) (Lab)]

Given that the Secretary of State obviously has difficulties with Barnett consequentials, may I simply ask him how much extra money will be coming to Wales?

[Mr McLoughlin]

I think that that is a question for the Secretary of State for Wales—[Interruption.] I do not have any problems whatever with the Barnett formula. The point that I am making about Network Rail is that it serves England and Wales.

[Mike Thornton (Eastleigh) (LD)]

As the effects of climate change multiply and increase, it is likely that events that now seem unusual will become more and more usual. Can the Secretary of State assure me that his current plans for transport infrastructure strengthening will be reviewed in the light of the fact that what is happening at the moment will not be a one-off event?

[Mr McLoughlin]

The last major review we carried out covered the way in which the Department responded to extreme cold weather, and to snow and ice in particular. A lot of resilience factors were built into the network as a result of that. We learn from any kind of event, and we try to ensure that those lessons are put to good use. I hope that that answers the hon. Gentleman’s question.

[Angela Smith (Penistone and Stocksbridge) (Lab)]

What is the Secretary of State’s estimate of the cost to businesses of the severe travel disruption?

[Mr McLoughlin]

At this stage, it is too early to give an exact figure. I have heard examples of some very stoical people going to exceptional lengths to get to work and keep their businesses operating, but at this stage it is too early to give the hon. Lady an exact answer.

[Oliver Colvile (Plymouth, Sutton and Devonport) (Con)]

I thank my right hon. Friend for coming down to Plymouth last Friday, about 36 hours after the great event at Dawlish. There is obviously considerable concern about what is going to happen there. Would he be willing to set out a timetable for the work that will ensure we have a resilient railway line in the long term? Will he also ask the Leader of the House whether we can have a proper debate on this matter? It is incredibly important that we get this right, and that people know what we are going to do.

[Mr McLoughlin]

I will not trespass on the responsibilities of others in relation to promising debates on the Floor of the House. I was once in a position to deal with such questions, but I no longer do so. I will therefore leave that matter to my right hon. Friend the Leader of the House, who will be making a statement after I have spoken. My hon. Friend also asked about long-term resilience, and he is absolutely right. When I was in his constituency, he told me specifically how these events were affecting his constituents. He also told me how determined he was to get a service for people to travel from Plymouth to London in under three hours; it is a matter of urgency for him. He has made his point, and I will look at ways in which we can try to achieve what he wants.

[Kevin Brennan (Cardiff West) (Lab)]

I would like to be clear about the exact figure on the cheque. I think the Secretary of State announced spending of about £125 million in his statement. How much of that is actual new spending, and how much of it relates to devolved competences?

[Mr McLoughlin]

The hon. Gentleman is fixated on new spending, but I do not see anything wrong, when coming to the end of the financial year, with looking at any underspending in the Department and using it. If there is cause for new money, I will have discussions with the Treasury about it. Likewise, the natural consequences of any decisions taken by the Government will flow through to Wales under the agreed formulae.

[Mark Pritchard (The Wrekin) (Con)]

During the night, Shropshire was hit by winds of up to 76 mph, and this morning more than 4,000 homes and businesses are without power. Will the Secretary of State join me in encouraging ScottishPower and other power companies to get the lights back on in Shropshire? Will he also join me in praising the hard work of West Mercia police, the Shropshire fire service, Telford & Wrekin council and Shropshire council staff?

[Mr McLoughlin]

I join my hon. Friend in saying that a number of people—and not only the ones he mentioned —have shown great stoicism in trying to make sure that services are provided, be they Network Rail staff, local authorities, the Environment Agency or the emergency services. A plethora of people have done fantastic work, and not just last night, which was when his constituency and his area of Shropshire were directly affected. Since Christmas a huge amount of work has been done by these emergency services, which have shown themselves to be right up to the task.

[Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)]

The incident at Dawlish highlights the problems that occur when no alternative rail route is available, and some of the disruption of the lines from England to Scotland in recent years has been exacerbated because of a lack of alternatives or because the available alternatives were not put into effect quickly. Clearly, one cannot build alternatives to cover every situation that might arise, but will the work on resilience—the word the Secretary of State is talking about—examine the possibility of making sure that it is much easier to use alternative routes when disruption occurs? Will there be an examination of the case for reopening currently closed lines to ensure that decent alternative routes are available?

[Mr McLoughlin]

Obviously, that is one thing we have got to look at in the long term. I am pleased to have been able to announce the reopening of several stations. There has been a huge change in the way people look at the rail service; they want a good reliable rail service, and that is important. We are seeing more people using the railways now than we have for a long time. In the past 20 years, the number of passengers has gone from 750 million to 1.5 billion, and there has also been a huge increase in freight on the railways, which we all welcome.

[Sir Richard Ottaway (Croydon South) (Con)]

The Secretary of State will be aware that the A22 in my constituency has been closed for several days, causing substantial disruption to traffic in south London. The closure is caused not so much by the flooding, which is adjacent to the A22, but by the installation of machinery to limit further flooding. Will he confirm that the package of compensation for businesses that has been announced applies to businesses that may not necessarily have been flooded but which are affected by the consequences of flooding?

[Mr McLoughlin]

I would like to look into the very valid points that my right hon. Friend has made and the particular cases to which he is referring.

[Diana Johnson (Kingston upon Hull North) (Lab)]

Is the Secretary of State satisfied that rail passengers in particular are being kept up to date with information about travel disruption? If he is not, what more can be done?

[Mr McLoughlin]

The hon. Lady makes a good point. I have asked the train operating companies to do a lot more on the social media network, which they are doing. One of the frustrating aspects of this situation for people is trying to get information. A lot of people who use the railways do not use social media, and there is a difficulty there, but we are trying to make as much information available as we possibly can.

[Mr Marcus Jones (Nuneaton) (Con)]

These are unprecedented weather conditions, and I commend my right hon. Friend for the work he is doing. I also commend all the people across the country who are working so hard to get our rail and road network open again and back to normal. Many of my constituents depend daily on the west coast main line. What more is the Secretary of State doing to make sure that there is better resilience against this type of weather on that line?

[Mr McLoughlin]

As I said, north of Rugby, a huge amount of money has been invested on the west coast main line. There is still more work to be done; for example, there is more work to be done on signalling, which will be happening this year as far as Watford is concerned. That will have an impact, providing better resilience overall to the services to which my hon. Friend refers. As he rightly says, that line is one of the busiest railway lines anywhere in Europe.

[Kerry McCarthy (Bristol East) (Lab)]

Not only do rail users in Bristol have to contend with the usual overpriced, overcrowded trains, but they are now being hit by disruption in both directions; it is affecting train services from Bristol to the west country and the Reading to Paddington section of the Great Western line. What support is available for rail users in Bristol? What compensation will be available for them?

[Mr McLoughlin]

I understand what the hon. Lady says. As I said just before this statement, I have had a meeting with all the coach operators, and they have agreed to put on extra services. Those services are available and a lot more are being laid on. They are seeing a rise in patronage, and their prices are very competitive indeed.

[Henry Smith (Crawley) (Con)]

I welcome the additional support the Government are giving for extra flights between London Gatwick and Newquay Cornwall airports. I also welcome the fact that, since 2010, £11.7 million has been spent on the Upper River Mole protection scheme, which has certainly helped my constituency over the past couple of months. Last night, there were some concerns that groundwater levels in this unprecedented weather were causing some disruption to the London to Brighton main rail line. Will my right hon. Friend assure me that the Department for Transport will work on the important interchange between Gatwick airport and the rail route coming into London?

[Mr McLoughlin]

I can assure my hon. Friend that we are keeping a close eye, both with Network Rail and all the other services involved, on water levels. As I said earlier in my statement, the levels are considerably higher than they have been for some time. The point that he makes about Brighton and the line from Gatwick to Brighton is an important one. We are monitoring that closely.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

May I remind the Secretary of State that, in a crisis such as this where so many people are having a miserable time and we have had loss of life—thankfully, a small loss of life—it is nice to have all-party agreement? None the less, it is also the job of the official Opposition to hold the Government to account, whether it is over the 560 redundancies that the Prime Minister did not want to mention yesterday, or over the question of whether this is new money. On the substantive point of the resilience of our network, it is all very well having new rolling stock, but my constituents travel up and down from Yorkshire on the east coast line and every time, with much less weather disturbance than this, it is the overhead lines that go down. That is the resilience that we need to tackle. It is no good having new trains without changing the overhead lines.

[Mr McLoughlin]

I know that the hon. Gentleman always tries to be cross-party consensual in these sorts of questions in the House; he is renowned for it. On this particular occasion, I simply say that I agree with him.

[Mr Speaker]

What was that very substantial tongue that I saw firmly embedded in a cheek when the Secretary of State was addressing the House?

[Rehman Chishti (Gillingham and Rainham) (Con)]

I welcome the statement by the Secretary of State. I thank him, his Department, the Highways Agency and all the other agencies for what they are doing to get the M2 back to normal following the discovery of a 16 feet sinkhole in the inner reservation. What steps are being taken to address the concerns about sinkholes, as they pose a real risk to road safety?

[Mr McLoughlin]

My hon. Friend the Under-Secretary of State who is responsible for roads is looking at that particular incident this morning. Sinkholes are not common events, but obviously we need to learn any lessons that we can from them. We also need to do the proper work to ensure that no further damage has been done to the road network before we reopen it. However, that part of the road network is now partially reopened.

[Nia Griffith (Llanelli) (Lab)]

This month, we have seen the dramatic pictures of Dawlish, but last month the sea washed away part of the main line to south-west Wales in my constituency. We saw even more dramatic pictures in the north with the Cambrian coast line. Many of the railway lines along our coast are part of flood protection measures. Barnett consequentials for Wales are a matter for every single Department across Government. Will the Secretary of State work with his colleagues in the Department for Environment, Food and Rural Affairs to work out exactly what Wales is due and then let us know?

[Mr McLoughlin]

As I have said, any Barnett consequentials that are necessary will take place.

[Mr Philip Hollobone (Kettering) (Con)]

The Transport Secretary will know that the midland main line runs diesel services through Kettering to his constituency in Derbyshire. He will also know that all too often those services are disrupted because the overhead line south of Bedford, which is used by First Capital Connect and Thameslink services, has gone out of commission. I echo the point about the resilience of the overhead lines. Will the Transport Secretary assure us that Network Rail realises that point and will put more investment into ensuring those lines stay up?

[Mr McLoughlin]

I am very pleased to say that the Government will be electrifying the whole of the line to Sheffield, which has been called for for a very long time. The electrification of our railways—we are committed to electrifying more than 800 miles in the next control period between 2014 and 2019—is very important for the long-term future of the railways in this country.

[Jeremy Lefroy (Stafford) (Con)]

My right hon. Friend is absolutely right to mention resilience and the importance of building that into any future lines. We have world-class tunnelling expertise from Crossrail, so can we ensure that far more of our rail lines are put in tunnels rather than deep cuttings? Earlier, he mentioned Shugborough tunnel in my constituency, which was put there to ensure that local residents—particularly, I believe, the Earl of Lichfield—were not disturbed by the line.

[Mr McLoughlin]

I cannot think what other tunnelling my hon. Friend might have in mind. Next year, we will see the completion of tunnelling for Crossrail, which has been a substantial investment in the rail infrastructure of this country.

Oral Answers to Questions

Lord McLoughlin Excerpts

Thursday 6th February 2014 Commons Chamber

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

1. What the average spend per head of population on transport services was in (a) Yorkshire and (b) London in the last 12 months.

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

The Treasury estimates that identifiable public expenditure on transport in 2012-13, the most recent year for which full figures are available, was £246 per head in Yorkshire and the Humber and £545 per head in London.

[Mr Sheerman]

When it comes to statistics, I tend to trust the Institute for Public Policy Research and the House of Commons Library more than I do the Department. The last time IPPR North looked at the figures on infrastructure spending, it was approximately £2,500 per capita in London and £500 in the north-east. Infrastructure investment is desperately needed outside London. Why can the Secretary of State not make a commitment? He has his heart in the north. Why does he not do something about it?

[Mr McLoughlin]

The hon. Gentleman can use whichever statistics and figures he wishes to. I, too, have asked for other figures. In 2009-10, the spend for Yorkshire and the Humber was £283 per head and £754 per head in London. I am pleased that under this Government transport spending in the north has gone up from 38% to 45%. It is important to make the point that the Kings Cross station development and the Alexandra Palace to Finsbury Park six-tracking are allocated to London spending, but the benefits will be enjoyed by all east coast main line users. It is not always possible to put the value of spending down to certain parts of the country.

[Andrew Jones (Harrogate and Knaresborough) (Con)]

We have seen good progress on rail investment, particularly in the north. What impact does the Secretary of State think HS2 will have on the local economy in Yorkshire?

[Mr McLoughlin]

HS2 is vital for the long-term capacity of the rail network. We have seen a massive increase in patronage, both in passengers and freight, and I welcome that. If we are to see that continue to grow, we have to increase capacity.

[Ms Diane Abbott (Hackney North and Stoke Newington) (Lab)]

The spend in London reflects the importance of transport to London. Even as we speak, millions of Londoners are struggling to work because of the dispute. We know that the majority of Londoners do not want every ticket office closed down. What is the Secretary of State doing to make the Mayor of London negotiate with the RMT?

[Mr McLoughlin]

The other day I heard the leader of the RMT say that his holiday last week was planned 11 months ago. Presumably, when he called the strike date, he knew when his holiday was. The least he could have done was to abandon his holiday before the strike action and be in the country, ready to negotiate. I am waiting for the hon. Lady and other Opposition Members to condemn this outrageous strike action, which is causing nothing but misery to millions of people who work in London. They should condemn it, as I do.

[Mrs Cheryl Gillan (Chesham and Amersham) (Con)]

The spend on transport services in Yorkshire and London must also include the compensation paid to people adversely affected by services such as HS2. When are the Government going to pull their finger out and announce the compensation package for my constituents and others affected up and down the country, and let them know what they can expect to get for their properties, which are being rendered worthless by this scheme?

[Mr McLoughlin]

My right hon. Friend knows that I take the issue of compensation incredibly seriously. We promised to consult again on this and we have done that. I will attempt to come forward with the conclusions of that consultation as soon as possible. I am in no doubt about the problems faced by many people on the proposed route, and I take those responsibilities very seriously indeed.

[Mr Dennis Skinner (Bolsover) (Lab)]

Is it not a fact that it takes two sides to create industrial action? The problem with the Tory Front Bench is that they dare not attack Boris Johnson for not conducting talks, because half of the Tory MPs want Boris Johnson to be their next leader. That is the reason.

[Mr Speaker]

On transport services between Yorkshire and London.

[Mr McLoughlin]

I will try to stay in order, Mr Speaker. The hon. Gentleman says it takes two to talk, but if one of the main leaders is out of the country the week before—Rio Bob, I think we should call him—then it is difficult to have those conversations.

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

The main cheerleader for HS2 in the midlands has consistently been the Birmingham chamber of commerce. We now discover it received £14,400 from HS2 for the period between September 2013 and August 2014 in so-called patronage fees. It has always been my understanding that patrons provide funding, not receive payment as an inducement. Will my right hon. Friend point out what other organisations have received similar patronage fees from HS2 for supporting this project?

[Mr McLoughlin]

What matters is that HS2 is of fundamental importance not just to Birmingham, but to Manchester and all our other northern cities. It is a very important project that deserves the support of the House, but I understand that people who have the route going through their constituencies have big problems, and I will always meet colleagues to discuss them.

[Sheryll Murray (South East Cornwall) (Con)]

2. What steps he is taking to increase the availability of wi-fi on the UK rail network.

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

I fully recognise the importance of good mobile services for passengers on board trains. We have met the rail industry and secured its agreement to roll out improvements to mobile services across the rail network, starting this year. We expect significant improvements across key routes, starting with comprehensive coverage achieved by 2019. Network Rail and train operators are working jointly to fund and deliver the improvements based on collaborations with mobile network operators.

[Sheryll Murray]

Will my right hon. Friend ensure that my constituents have trains that are running with adequate seating so that people can use the wi-fi?

[Mr McLoughlin]

I will say something in topical questions about the appalling situation faced by Devon and Cornwall MPs as regards the rail service in their areas. I fully accept what my hon. Friend says. I met her and other Members last night to discuss the situation and its effect on their constituencies, and I will be saying a little more later on.

[Mr Ben Bradshaw (Exeter) (Lab)]

While good wi-fi is important for rail travellers, the trains need to be running in the first place, so I will invite the Secretary of State, if he does not mind, to say a little more about what he is doing to ensure that this vital main line into the south-west is reopened as quickly as possible, and about what he will do in the long-term to help deal with the vulnerability of the line at Dawlish?

[Mr McLoughlin]

I am trying to keep in order by sticking to the issue of wi-fi, but I well understand the concerns of the right hon. Gentleman and other hon. Members who came to see me last night, with Robin Gisby, the managing director of Network Rail, to talk about the situation at Dawlish and how it has basically cut off services to Devon and Cornwall. I have not yet had the full engineering report, because it has not been possible to get it, but I can assure the right hon. Gentleman that I am working with Network Rail to restore the service as quickly as possible and to carry out a more vigorous review of some of the alternatives available.

[Mr Speaker]

As the Clerk Assistant has just pointed out to me, Members’ approach to Question 2 might best be described as “broadband”.

[Andrew George (St Ives) (LD)]

On the same theme, it is important to recognise that to have a resilient wi-fi service on our rail service, we need to have a resilient rail service. In view of the Secretary of State’s earlier reply, does he not accept that if we are to invest properly in a resilient service down to Penzance, in my constituency, we need to ensure that there is funding comparable to the money being spent on HS2 and other services?

[Mr McLoughlin]

I will be asking for further work to be done on the question of resilience in the south-west, as I indicated to the hon. Gentleman in the meeting last night. Over the next five years, between 2014 and 2019, Network Rail will be spending £38 billion on the existing railway network. There is, therefore, no shortage of understanding from the Government of the importance of rail services across the whole country. As far as services in Devon and Cornwall are concerned, I also take those responsibilities incredibly seriously.

[Lilian Greenwood (Nottingham South) (Lab)]

The introduction of wi-fi on First Great Western is undoubtedly good news for passengers, but given that the Government’s incompetent franchise extension negotiations have lost the taxpayer £100 million in premium payments this year, is this not the most expensive internet upgrade in history?

[Mr McLoughlin]

I am not sure what that has to do with the internet upgrade. Obviously, when a new franchise contract, or short-term contract, is leased, various matters are taken into account, including the age and replacement of rolling stock. If the Labour party is not committed to that, I wonder what Labour Members would say to Bombardier, which today won a rolling stock contract that will be very important to Derby and Derbyshire. Would they say that they were opposed to it?

[Joan Walley (Stoke-on-Trent North) (Lab)]

3. What support is available to people with disabilities at railway stations with no disabled access.

--- Later in debate ---

[Mr Speaker]

The road in question is immensely important, but I do not think that it is a motorway,

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

A broadband approach.

[Mr Speaker]

Indeed. There is a degree of ingenuity about the hon. Member for Thirsk and Malton (Miss McIntosh) with which I am very familiar.

--- Later in debate ---

[Andrew Percy (Brigg and Goole) (Con)]

6. What plans he has to set up a High Speed 2 skills academy.

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

In January, the Government announced their intention to set up a new college to train the next generation of world-class engineers to work on the construction of High Speed 2. My Department is working with the Department for Business, Innovation and Skills and HS2 Ltd to develop the proposals, which are currently at an early stage.

[Andrew Percy]

My right hon. Friend will know of the proud manufacturing heritage in the Humber—in east Yorkshire and north Lincolnshire. May I suggest that he ensures that any such skills academy is located in the Humber, and that a perfect location would be in Scunthorpe, which was recently awarded a university technical college?

[Mr McLoughlin]

I am pleased about the awarding of the UTC in my hon. Friend’s area, and he doubtless campaigned for it vigorously. I know that he will continue the campaign to get the HS2 skills college. I have had a number of requests from various hon. Members as to where this college should be located.

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

As an ex-apprentice, I am very passionate about the idea of creating more apprenticeships, and this project presents an ideal opportunity. Labour is committed to creating one apprenticeship for every £1 million spent. Will the Government do likewise?

[Mr McLoughlin]

What is important is the way in which we have massively increased the number of apprenticeships. Part of today’s announcement about Bombardier means that there will be an increase in apprenticeships in that area, and I am looking at every possible avenue to encourage apprenticeships.

[Heather Wheeler (South Derbyshire) (Con)]

Again, may I congratulate Ministers on the brilliant result of Bombardier getting the Crossrail deal and the 80 apprentices that that contract will bring? Would it not make complete sense for this academy to be based in Derby?

[Mr McLoughlin]

As I said to my hon. Friend the Member for Brigg and Goole (Andrew Percy), there will be a number of applications for the location of this academy. I join my hon. Friend the Member for South Derbyshire (Heather Wheeler) in congratulating Bombardier, which won this Crossrail contract against some stiff competition. It just shows that Bombardier can win competitions for rolling stock and that the Government are committed to providing that rolling stock, too.

[Nic Dakin (Scunthorpe) (Lab)]

What assessment was made of the capacity and expertise of existing further education colleges before the decision was made to spend £20 million of scarce public money on a new academy?

[Mr McLoughlin]

I am pleased that the hon. Gentleman seems not to be bidding; there will be one fewer venue to consider as a result of that sort of intervention. It is not often I hear people complaining about the Government investing in higher education and the future of our engineering skills. I am very proud we are doing it—it will be £20 million well spent.

[Mr Dominic Raab (Esher and Walton) (Con)]

7. What steps he is taking to improve value for money for rail passengers.

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

We are driving efficiencies through our franchising programme and franchise management, and by encouraging co-operation across the industry. Working with the regulator, we have cut Network Rail’s costs by 40% since 2004, and it has a further efficiency target of just under 20% by 2019. We have also shown our commitment to giving value for money this year by capping the average regulated fare rise at the retail prices index only. That is the first time this has happened in 10 years.

[Mr Raab]

I thank the Secretary of State for that answer, and I welcome all the measures to which he has referred. Last year, South West Trains paid the Department for Transport the highest premium per passenger kilometre of any operator but had the fourth highest level of overcrowding in London and the south-east. So what more can be done to deliver better value for money for passengers on South West Trains?

[Mr McLoughlin]

I fully accept the points about my hon. Friend’s constituents, and one thing we have been doing is increasing the availability of rolling stock. A number of new trains are on order which will serve his constituents, and I hope that that will bring some relief to the overcrowding. He rightly says that a number of commuters live in his area, and there are problems in providing the peak-hour trains for everybody who wants to travel then. That is why I want to see further encouragements to spread the morning rush hour.

[Alison Seabeck (Plymouth, Moor View) (Lab)]

Value for money for passengers travelling down to the south-west has always been an issue, but with the destruction of the rail line there is growing concern that the need to spend money following this climate problem will fall to passengers and they will find themselves picking up the bill. Will the Secretary of State confirm that the Prime Minister’s promise made yesterday, which can be found at column 269 of Hansard, will be honoured and that the Government will take their share of the burden?

[Mr McLoughlin]

I am glad that the hon. Lady could join me at the meeting last night with Network Rail, and I am grateful to all the colleagues who attended at short notice. My right hon. Friend the Secretary of State for Communities and Local Government will make a statement later this morning and give further details of the help that we will make available to those areas. No one can have seen the pictures of Dawlish yesterday without having tremendous sympathy or realising the scale of the problems that we have to overcome.

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

Does my right hon. Friend accept that passengers from my constituency on the West Anglia line could be more readily persuaded that there will be value for money if there were an early promise of new, not hand-me-down, rolling stock to replace the elderly type 317s on which they mostly have to rely?

[Mr McLoughlin]

I know that my right hon. Friend continues to make this case—he made it to me when I was in his constituency not many months ago—and I will bear in mind what he says. We are investing huge amounts in new rolling stock, including the new intercity express trains, the new trains for Crossrail and the other rolling stock orders that we have placed, which will benefit the travelling public.

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

15. The efficiency of the underground railway in London is the reason, we are told, why the changes will be made. While my constituents welcome the increased hours that the underground is likely to be open, they are concerned that it will mean fewer staff on duty overall. I have written to Transport for London to ask how many staff will be on duty, for example, at Angel, Islington at 3 am, but it has been unable to tell me. Will the Secretary of State help? Would he allow his teenage children on the underground at 3 am? Does he think that would be safe?

[Mr McLoughlin]

The hon. Lady says that her constituents rely on the underground, but I have yet to hear any Opposition Member condemn the strike action that is causing suffering to many millions of people in London and surrounding areas. It is all very well calling for extra capacity on the railways and the underground, but if strike action means that people cannot use them, it is ineffective.

[Mr Philip Hollobone (Kettering) (Con)]

8. What recent progress has been made on (a) Highways Agency works to widen the A14 between junctions 7 and 9 and (b) Network Rail’s reconstruction of the Pytchley Road road bridge over the Midland main line in Kettering.

--- Later in debate ---

[Craig Whittaker (Calder Valley) (Con)]

9. What plans he has to introduce new rolling stock on the railways.

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

I would draw the House’s attention to my statement this morning about the preferred bidder for the £1 billion Crossrail rolling stock and depot contract. Combined with IEP and Thameslink, more than 3,100 new carriages will be in service by the end of 2019. In addition, through the franchising programme we expect the market to deliver additional rolling stock solutions, building on the possibilities created by the rail investment strategy’s electrification projects and capacity increases.

[Craig Whittaker]

The Government need to be applauded for investing £8 million in the reopening of the Todmorden curve railway line between Todmorden and Burnley, which is due for completion in May. Will the Secretary of State update us on whether any progress has been made with Northern Rail on the procurement of a further diesel train so that the service can start before December?

[Mr McLoughlin]

I well understand the points my hon. Friend makes. I know that Northern Rail has been working on how best to deliver those services, including the provision for rolling stock. A small number of diesel trains from within the current northern fleet may become available for use on this service from December 2014 when the electric trains are due to start operating on some services between Liverpool and Manchester, but I know and understand my hon. Friend’s desire to get a service up and running sooner. I will personally look into what can be made available.

[Fiona Mactaggart (Slough) (Lab)]

New rolling stock will be required on the very welcome new line planned from the Great Western main line into Heathrow, which was announced today. Will the Minister take action to speed up the delivery of that line? If we wait until 2021 to deliver that line, some of the businesses in the Thames valley which have been hanging on for western access to Heathrow might leave the country. Can he do more to speed it up?

[Mr McLoughlin]

We are investing record amounts in the rail industry. I will certainly look into the point the hon. Lady makes, but it is one of many demands as far as rail services are concerned.

[Pauline Latham (Mid Derbyshire) (Con)]

18. Will the Secretary of State join me again in welcoming the fantastic order won by Bombardier, but could we also encourage Bombardier to use its local supply chain industry, because we have a centre of excellence in Derby for engineering and knock-on industries and it would be very good if it could spread the load and invest in the local area?

[Mr McLoughlin]

I very much agree with my hon. Friend and I know she will be delighted at today’s announcement. It is worth pointing out that in Derby we have got not only Bombardier but Rolls-Royce and Toyota and just over in Staffordshire—but I almost regard it as Derbyshire—JCB, all providing an engineering centre of excellence. It is true that some 71% of this new contract will be based on small and medium-sized industries in this country. I forgot to say that JCB is also in the constituency of my hon. Friend the Member for South Derbyshire (Heather Wheeler).

[Kerry McCarthy (Bristol East) (Lab)]

10. What assessment he has made of the effects of rising bus and train fares on the cost of living and the cost of travelling to work.

--- Later in debate ---

[Mrs Linda Riordan (Halifax) (Lab/Co-op)]

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

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

I am sure the whole House will want to join me in expressing sympathy for those who have been affected by the extreme weather conditions. An urgent priority is the railway at Dawlish. Colleagues will have seen the images of the devastating impact the weather has had on the railway there. I met members of all parties of Devon and Cornwall yesterday evening alongside Network Rail. The immediate priority is to assess the damage and develop a plan for getting the line back into service as soon as possible, but I am acutely conscious of the need to develop a long-term solution for the resilience of the railway network in the south-west and I have asked for a report to me on the options for addressing this problem.

[Mrs Riordan]

The Calder valley line was recently excluded from the list of northern lines to be electrified. Will the Secretary of State look again at this and back my and the Halifax Courier’s campaign to get this line electrified as soon as possible?

[Mr McLoughlin]

I met an all-party group on rail electrification a few weeks ago and discussed the matters that the hon. Lady has just relayed. I fully accept that there is a lot of pressure on us to extend electrification. I am proud that we have set a target for Network Rail of 850 miles in the next control period. I am certain that other cases will be made. Let me stress to her that our target of 850 miles is 841 miles more than the previous Government achieved in 13 years.

[Mr David Amess (Southend West) (Con)]

T2. Will my right hon. Friend join me in congratulating c2c on transforming what used to be known as the misery line, from Fenchurch Street to Southend, to the cheerful line, thus meaning that it should have its franchise renewed? By contrast, Greater Anglia railways must have the most clapped-out, dirtiest rolling stock in the world.

[Mr McLoughlin]

Whenever I hear my hon. Friend’s voice behind me in the House, it always cheers me up. The transformation of the line into Fenchurch Street is largely the result of investment by Network Rail and the Department for Transport in both infrastructure and the rolling stock. The bids for Essex Thameside are currently being evaluated, and the Department will seek to announce a preferred bidder shortly.

[Mary Creagh (Wakefield) (Lab)]

Freak weather is rapidly becoming the new norm in our country, and I understand the difficulties that the Secretary of State has in giving a time scale for the Dawlish repairs, given that further bad weather is forecast for Saturday. None the less, every week the line is closed is costing the regional economy tens of millions of pounds. Will he keep the House updated and look urgently and strategically across the whole rail network, including at Wales, the north-east and Scotland, to see how we can make it more resilient against future storms?

[Mr McLoughlin]

In answer to the hon. Lady’s question, I simply say yes. That must be the first time that anyone has been able to do that.

[Neil Parish (Tiverton and Honiton) (Con)]

T3. There is no doubt in my mind that the west country is the most important part of the country. At the moment, not only do we have problems with the main rail down through Dawlish and Exeter, but we need to upgrade the Exeter to Waterloo line. We also need that second arterial road route, the A30-A303, to ensure that we get access to the west country

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

T4. I know that the Secretary of State gets on well with the Secretary of State for Communities and Local Government, who is encouraging muscular localism and local referendums. Will he do the same in those communities, the big cities, where no one has been consulted about the value for money and the impact of High Speed 2?

[Mr McLoughlin]

There have been many opportunities to raise the issue of HS2. I am pleased that the paving Bill received the overwhelming support of the House of Commons, and I regard that as an important referendum in itself.

[Nigel Mills (Amber Valley) (Con)]

T5. While joining in the welcome for the Crossrail award to Bombardier this morning, may I invite the Secretary of State to my constituency to see the real harm caused by the level of noise from the A38 to people living far too close to that road?

[Mr McLoughlin]

As I drive through my hon. Friend’s constituency on a regular basis, I am more than delighted to come and talk to him and his constituents about some of the problems that noise creates for them as a result of the traffic on the A38.

[Gavin Shuker (Luton South) (Lab/Co-op)]

T7. Will the Secretary of State join me in welcoming the granting of planning permission for the expansion of Luton airport? It will help the Government with their capacity problem in the south-east and do so without the extension of any existing runway or the building of a new one.

--- Later in debate ---

[Phil Wilson (Sedgefield) (Lab)]

Although, obviously, I am disappointed that Hitachi was not successful in winning the Crossrail bid, I am pleased for the people of Derby and think that it is good news for British jobs. I am sure that the House is aware that although all the bidders are foreign-owned, two are based in the UK: Hitachi in Newton Aycliffe in my constituency and Bombardier in Derby. Will the Secretary of State tell the House what processes are in place to ensure that the winning bidder will fulfil its contractual obligations?

[Mr McLoughlin]

As the hon. Gentleman will know, because he was very much involved when Hitachi won the intercity express programme order, there is a standstill period of an extra 10 days. What I announced along with the Mayor of London this morning was the preferred bidder. That process has to be gone through and it is right that it should be gone through. It all goes to show that Hitachi is investing in the hon. Gentleman’s constituency. I was up there a few weeks ago, and Hitachi has a huge order and is determined to win more, not only in the United Kingdom but across Europe.

[Philip Davies (Shipley) (Con)]

The only direct trains from Shipley to King's Cross are at 6.36 and 7.17 in the morning and the only direct train back is at 6.33 in the evening—all at peak times. When the east coast line is refranchised, may we have more direct trains to Shipley and at off-peak times so that my constituents can benefit from lower fares?

[Mr McLoughlin]

As my hon. Friend knows, the invitations to tender for services on the east coast line are being dealt with by the Department. I am sure that the people who monitor these sessions will take on board his recommendation.

[Paul Flynn (Newport West) (Lab)]

A while ago, a lorry caught fire on a motorway in my constituency. It was carrying ammunition, including Sidewinder missiles. Will the Minister consider approaching those who transport very dangerous materials, including chemicals, to suggest transferring those journeys from motorways to rail, where the chances of a catastrophe are greatly reduced?

--- Later in debate ---

[Sarah Newton (Truro and Falmouth) (Con)]

Although I greatly welcome today’s commitment to get our line open as soon as possible, does the Secretary of State agree that it is vital that we send out the message that Cornwall is still open for business? Will he therefore lay out plans for alternative bus services to replace the train services?

[Mr McLoughlin]

Yes, we will be considering a number of those issues and I hope shortly to be able to inform my hon. Friend and others from that area of the measures that we want to put in place. She is absolutely right that Devon and Cornwall are fantastic places to go. There have been some rough connection problems, and we have to sort them out, but Devon and Cornwall will still be a great destination for both Easter and half term.

[Several hon. Members]

rose—

Rail Infrastructure

Lord McLoughlin Excerpts

Thursday 6th February 2014 Written Statements

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

I would like to inform the House of the intention to award Crossrail’s rolling stock and associated depot facilities contract to Bombardier. In line with European procurement rules, the contract is now subject to a 10-day standstill period. Until this period is over, the contract award cannot be confirmed and Bombardier is unable to release information related to its bid.

The contract, which includes the supply, delivery and maintenance of 65 new trains and a depot at Old Oak Common for up to 32 years, has a capital value of around £1 billion. The contract will be between the successful bidder and Transport for London who will operate Crossrail as part of their services.

Together with the Mayor of London, my co-sponsor on the Crossrail project, I welcome this major milestone which Crossrail Ltd has reached ahead of schedule, ensuring the first trains are delivered by 2017 ahead of services commencing through the new central tunnels in late 2018.

Hon. Members will recall that the invitation to negotiate required bidders to meet a set of “responsible procurement” requirements on how they would engage with the wider supply chain and provide opportunities for training, apprenticeships, and small and medium-sized businesses within their procurement strategy.

Alongside this, bidders were asked to set out an estimate of the value of the contract that will be spent in the UK. While this was not an assessment criterion in the decision process, the successful bidder will be required to report against it following contract award.

Today, on the basis of that information, I can confirm that an estimated 74% of contract spend will remain in the UK economy as a result of this announcement.

Bombardier has confirmed that the new trains will be manufactured and assembled at their plant in Derby. This contract will support 760 UK manufacturing jobs plus 80 apprenticeships adding to the 55,000 jobs which will be supported by the Crossrail project over its lifetime.

The construction of the maintenance depot at Old Oak Common will see 244 jobs, plus16 apprenticeships and when fully operational will employ 80 people to maintain to the new fleet of trains.

Project Management

Lord McLoughlin Excerpts

Thursday 30th January 2014 Written Statements

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

I have today given the Information Commissioner a certificate under section 53 of the Freedom of Information Act 2000 (“the Act”) both as it applies for the purposes of the Act itself, and as it applies to the Environmental Information Regulations (EIR) 2004 (“the regulations”) by reason of regulation 18(6). This certificate relates to the Information Commissioner’s decision FER0467548 of 6 June 2013 (“the decision notice”). That decision notice found that the Cabinet Office had failed to comply with its obligations under the EIR in refusing to disclose a project assessment review (“PAR”) report concerning High Speed 2 (“HS2”), the project for a high-speed rail link between London, Birmingham, the east midlands, Sheffield, Leeds and Manchester.

The consequence of my giving the Information Commissioner this certificate is that the Information Commissioner’s decision notice, which requires the November 2011 Major Projects Authority project assessment review report to be disclosed, ceases to have effect.

A copy of the certificate has been laid before each House of Parliament. I have additionally placed a copy of the certificate and a detailed statement of the reasons for my decision in the Libraries of both Houses, the Vote Office and the Printed Paper Office.

My decision to exercise this power of veto in this case was not taken lightly. I have taken into account the statement of Government policy on the use of the Executive override as it relates to information falling within the scope of section 35(1) of the Act.

I have taken into account the views of Cabinet, Ministers and the Information Commissioner, in considering both the balance of the public interest in disclosure and non-disclosure and whether this is an exceptional case. My view is that the public interest favours non-disclosure. I have also concluded that this constitutes an exceptional case and that the exercise of this power of veto is warranted.

In summary, the major projects review was conducted to inform the development of the HS2 project. The public interest in ensuring that projects of this scale, importance and cost are properly controlled and overseen is very high indeed. The assurance of confidentiality is important in the conduct of the review. In my view, there is nothing in the nature or content of this particular report which outweighs that strong public interest against disclosure.

A detailed explanation of the basis on which I arrived at the conclusion that the veto should be used is set out in my statement of reasons.

Oral Answers to Questions

Lord McLoughlin Excerpts

Thursday 19th December 2013 Commons Chamber

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

1. What assessment he has made of the recent performance of East Coast Mainline Company Ltd

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

My officials meet with East Coast and Directly Operated Railways on a regular basis to discuss the performance of the franchise. DOR’s financial accounts are published on its website on an annual basis.

[Grahame M. Morris]

As this is the last Question Time before Christmas, I would like to take this opportunity to wish you, Mr Speaker, and the Secretary of State and his team, a merry Christmas.

I declare an interest: I am a member of the RMT parliamentary group—unremunerated. The Secretary of State will be aware that the East Coast service has delivered record levels of passenger satisfaction, returned £800 million to the taxpayer and seen almost half of fares frozen, due in no small part to the staff, who have worked so hard. The best Christmas present for them would be to cancel the privatisation. Will the Secretary of State meet me and a small delegation to listen to their concerns about the application of TUPE regulations if the sell-off goes ahead?

[Mr McLoughlin]

Either I or the Under-Secretary, my hon. Friend the Member for Wimbledon (Stephen Hammond), will be delighted to meet the hon. Gentleman and some of his colleagues, but I just point out to him, as I have done frequently, that the last Labour Secretary of State for Transport 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.]

Those recent improvements in rail franchising have resulted in passenger journey numbers in this country going up from 750 million to 1.5 billion and people using our railways a lot more, with a huge amount of investment guaranteed by this Government.

[Miss Anne McIntosh (Thirsk and Malton) (Con)]

It would be churlish not to wish you a merry Christmas, Mr Speaker.

Will my right hon. Friend the Secretary of State join me in congratulating the management and the work force of East Coast Mainline on their achievements? Has he any information on journeys lost or delayed since the ratio of diesel to electric trains has changed?

[Mr McLoughlin]

Off the top of my head, I am afraid I do not have that specific fact and figure, but I will certainly write to my hon. Friend. I would like to thank all those, not just on the east coast main line but on all the other train services, who are doing everything they can over the seasonal period to make sure people get to their destinations.

[Hugh Bayley (York Central) (Lab)]

Does the Secretary of State not realise that the staff and management of East Coast rescued that service after a second private sector franchise collapsed? They are concerned that their job security at the headquarters at York is being put at risk again, so will the Secretary of State come to York with me to meet the staff to explain his plans?

[Mr McLoughlin]

I have used East Coast trains on a number of occasions and have talked to the staff operating the service. The hon. Gentleman should just wait and see which companies come forward, and he may find he gets a much enhanced service over the coming years—and I very much hope he will do so.

[Mary Creagh (Wakefield) (Lab)]

May I also wish you the compliments of the season, Mr Speaker, and thank all the staff of the House for keeping us safe throughout the year?

People struggling with the Government’s cost of living crisis are carefully planning their budgets for Christmas and next year. They need and deserve to know how much their season tickets will cost from 2 January. Why is East Coast the only train company to have published its fare increases for next year?

[Mr McLoughlin]

The hon. Lady might just have welcomed the fact that for the first time in 10 years we have got rid of above-inflation rail ticket price increases. I would have thought that she might welcome that, because I am very proud that for the first time in 10 years this coalition Government have held rail fare increases down in line with the retail prices index.

[Mary Creagh]

The right hon. Gentleman talks about the autumn statement but it is his decision not to remove the “flex” on fares, which means some commuter tickets could still rise by 5.1% next year. In 13 days people will buy their annual season tickets, yet they have no idea how much they will cost. That is completely unacceptable. Is not the example set by East Coast another reason that it should be kept as a public sector comparator?

[Mr McLoughlin]

The simple fact is that the reduction in rail fares announced by my right hon. Friend the Chancellor in the autumn statement has been widely welcomed by various organisations including Transport 2000, and I am very proud that we have managed to do something. The hon. Lady mentions the “flex”. We have reduced the extent to which the “flex” can be exercised, which the last Government never did.

[Charlotte Leslie (Bristol North West) (Con)]

2. What steps he is taking to invest in local railway branch lines.

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[Mrs Cheryl Gillan (Chesham and Amersham) (Con)]

3. What assessment he has made of the most recent estimate of the costs to the public purse of High Speed 2.

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

The most recent cost estimate for both phases of the project is £42.6 billion and £7.5 billion for rolling stock. This includes a contingency of £14.4 billion for construction costs and £1.7 billion for rolling stock. The project currently assumes that the cost of HS2 is to be funded by the public purse. However, my Department is exploring the scope to draw in third-party funding to lessen the cost exposure to the taxpayer.

[Mrs Gillan]

Mr Speaker, I wish you and the Secretary of State a very happy Christmas. The Secretary of State could of course give both our constituencies an early Christmas present by cancelling HS2, but I do not suppose that that is on the drawing board. If everything in the garden is so rosy with regard to the finances, why does he feel it necessary to continue to suppress the Major Projects Authority reports on the risks associated with the project? Suppressing those reports does not send out a very good message to people about the project, whether they are for it or against it. In the absence of any response to my questions about this from the Cabinet Office Minister, will the Secretary of State tell the House what his intentions are with regard to the reports? Will he confirm or deny that he is continuing to try to prevent their publication?

[Mr McLoughlin]

The one thing that HS2 is not short of is reports from various committees, either of this House or across the wider spectrum. The simple fact is that the report my right hon. Friend refers to is one direct to Ministers, and it is not usual to publish such reports. That report is two years old and it gave an amber/red—I think that is in the public domain—but the latest report has given an amber, which shows that even the Major Projects Authority recognises that we have made major strides forward.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

Mr Speaker, happy Christmas. Unfortunately, the Secretary of State seems to be in a “Bah, humbug!” sort of mood today. May I encourage him not only to lighten up a bit, but to lighten up all of us who want investment in housing, hospitals, health and schools by scrapping this expensive extravagance and joining the Secretary of State for Business, Innovation and Skills, who this morning has said that London is “draining the life” out of the regions of this country and that HS2 will speed up that process?

[Mr McLoughlin]

I do not know about needing to lighten up—I think the hon. Gentleman should look in a mirror. The simple point is that we are not short at all of investment in the railways. In the next five years—its next control period—Network Rail will invest £38 billion in the current railway system. It is vital that we get connectivity between our major cities. I have to say that some of the biggest supporters of HS2 are the northern leaders. If they thought it was going to do damage to their areas, they would not be overwhelmingly supporting it in the way that they are.

[Mr Andrew Turner (Isle of Wight) (Con)]

Can the Minister compare the expenditure of public money on HS2 with that on the ferries crossing the Solent to the Isle of Wight?

[Mr McLoughlin]

One gets ready for a lot of things in preparing for questions, but I am going to have to disappoint my hon. Friend, because I do not have readily available details on that particular line of questioning on HS2. I will most certainly look at the points he raises, but I point out to him that it is the wider investment in the whole of the United Kingdom’s transport infrastructure that we can rightly be proud of. I was very pleased to be in his constituency when a new mode of financing road repairs was used for his constituents.

[Barry Gardiner (Brent North) (Lab)]

The Secretary of State did not say in the list of estimated costs what has been allocated for biodiversity offsetting, for the replacement of ancient woodland and for addressing all the other environmental damage that HS2 will cause. What element of the budget has been set aside for that?

[Mr McLoughlin]

That has all been taken into account. Indeed, one reason for the increase in cost that I announced to the House some time ago was some of the measures that we have taken, after representations, on tunnelling. I take the environmental costs seriously, as I know does the new chairman of HS2 Ltd, Sir David Higgins. I point out to the hon. Gentleman the amount of money that was made available for environmental improvements along the route of HS1, but I will write to him in more detail.

[Several hon. Members]

rose—

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[Karen Lumley (Redditch) (Con)]

5. What recent assessment he has made of the potential wider economic effects of High Speed 2.

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

Investment in HS2 will deliver widespread connectivity improvements, grow markets and increase opportunities to trade. Our assessment of the benefits to businesses is £53.8 billion over a 60-year period. Further analysis by KPMG suggests that the wider economic effects could be far greater.

[Karen Lumley]

In my county, Worcestershire, it is estimated that HS2 will generate up to £375 million every year for our local economy. Does the Secretary of State agree that if HS2 did not go ahead, places such as Redditch would lose out?

[Mr McLoughlin]

I most certainly do agree with my hon. Friend. One of the most important points about HS2 is that there is not just one single reason for it. There are reasons of capacity, connectivity and, yes, investing in brand-new trains which will get us to our cities in the north faster than at present.

[Mr Clive Betts (Sheffield South East) (Lab)]

A characteristic of HS2 is that there will be widespread economic benefits to areas such as the city region in Sheffield, with very specific high costs to certain individuals, such as my constituents on Greasbro road, who will lose their homes. Will the Secretary of State look again at whether it is reasonable compensation in these circumstances simply to offer market value plus 10%? Should we not do a little more to help those people who bear the cost for the wider economic benefit of everyone else?

[Mr McLoughlin]

I would point out that, as I am sure the hon. Gentleman knows, we are in a consultation process on the Birmingham to Leeds and Birmingham to Manchester schemes, so it might be inappropriate for me to say now that those particular routes are confirmed, but I will bear in mind what he says. We are out to consultation on the whole question of compensation in relation to phase 1, and I will bear his remarks in mind for phase 2 as well.

[Mr Simon Burns (Chelmsford) (Con)]

13. Does my right hon. Friend accept that he was a bit reticent in his original answer, in that when referring to the KPMG report, he failed to tell the House that the benefits from 2036 to the community will be £15 billion a year, and that 70% of the benefits of HS2 will be outside London? Does one not have to be a fairly Neanderthal individual not to bear in mind the benefits that that will bring to the nation, particularly the midlands and the north of England?

[Mr McLoughlin]

I am grateful to my right hon. Friend for all his work in helping me with these projects. He is right about the benefits. The Jubilee line extension did not have a very good benefit-cost ratio, but if it had not been built, neither would all the developments at Canary Wharf, so there is a lot to be said for the wider economic benefits we will get from this new railway line.

[Mr Russell Brown (Dumfries and Galloway) (Lab)]

If the proposals for HS2 are to survive, there needs to be that wider economic impact right across the UK. Is there anything in the Secretary of State’s diary indicating that he might have an opportunity to discuss that in the near future with either the Scottish Government or the two main local authorities, Edinburgh city council and Glasgow city council?

[Mr McLoughlin]

The leader of Glasgow city council joined others in presenting a letter to the Prime Minister stating how important HS2 was, and I was delighted to meet him on that occasion. The Scottish Justice Minister has written to me on another matter and requested that I meet him, so I might be able to arrange to meet the leaders of both city councils at the same time.

[Richard Graham (Gloucester) (Con)]

6. What recent assessment he has made of Network Rail’s performance in maintaining and upgrading station infrastructure.

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

The Government are continuing to fund station improvements and upgrades through four programmes: the national stations improvement programme, the Access for All programme, the new stations fund and the station commercial project facility. In addition, we are funding improvements at several major stations. Network Rail is funded by the Government through each control period to maintain and renew station assets, and its performance on station conditions is monitored by the Office of Rail Regulation.

[Richard Graham]

I am grateful to the Secretary of State for that reply. For too long under the previous Government very little was done to improve Gloucester station. Under this Government’s scheme we have had welcome improvements, including lifts for the elderly and disabled, and yesterday Network Rail confirmed that for the first time ever a canopy will be installed over our platform bridge. I am grateful for that Christmas good news. However, there is more to be done. Will the Secretary of State please confirm that the Government will continue to invest in our stations and will welcome well-argued cases for improvements in overall city centre regeneration schemes?

[Mr McLoughlin]

My hon. Friend is right that the Access for All programme provided a footbridge and two lifts at Gloucester station, costing £1.7 million. That is a small but important way in which we can help some of the older stations to be maintained and to be available for all people to access. We are seeing a major regeneration of our stations. Some of our major stations are now destinations in their own right. St Pancras station, for example, used to be a place where people did not want to spend more than five minutes, but it is now a destination in its own right.

[Jeremy Corbyn (Islington North) (Lab)]

I am due to meet the Secretary of State’s colleagues in the new year to discuss Finsbury Park station. Can he assure me that his Department is intervening to ensure that both Network Rail and Transport for London invest enough money in that dangerously overcrowded station to ensure that it is fit for purpose and good for the future, rather than overcrowded and out of date, which it is at the moment?

[Mr McLoughlin]

I will obviously ask for a report on the points the hon. Gentleman has made. I am in regular contact with Transport for London and the Mayor of London, who continually make the case for greater investment in London. I have to try to balance that with the requests for station improvements from the rest of the country. The hon. Gentleman makes a strong point about the station he has referred to.

[Duncan Hames (Chippenham) (LD)]

In July I asked for Ministers’ support to hasten the installation of lifts at Chippenham station. Now that the coalition Government have provided funding for an additional 80 services a week from that station and Wiltshire council has finally granted planning permission, when can we hope that Network Rail will be able to make step-free access at Chippenham station a reality?

[Mr McLoughlin]

A lot of money has been given to Network Rail for those improvements, but rather than trying to reply to my hon. Friend now, I think that it would be better if I wrote to him.

[Lilian Greenwood (Nottingham South) (Lab)]

May I take this opportunity to wish you, Mr Speaker, and the whole House a very merry Christmas? Following his announcement this week, will the Secretary of State launch a full consultation on Network Rail’s future debt and governance structures to ensure best value for the taxpayer and full accountability to passengers?

[Mr McLoughlin]

I am keen that Network Rail should continue to get the levels of investment that we have set aside for it and that nothing should put a question mark over that. I think that the hon. Lady needs to have a conversation with the shadow Chancellor, who today announced that the Labour party will be having a zero-based look at all that funding. I can say from this Dispatch Box that I can secure the funding for Network Rail, but I do not think that the hon. Lady can say that for her party.

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[Eric Ollerenshaw (Lancaster and Fleetwood) (Con)]

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

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

Millions of people will be travelling long distances to see family and friends over the coming days. All key transport operators have contingency plans in place to deal with disruption if the weather deteriorates. As in previous winters, the Government are monitoring road salt supplies on a regular basis. The current stocks are robust, totalling 1.7 million tonnes

As we head into Christmas, I would also like to take this opportunity to highlight the anti-drink-drive campaign that we launched earlier this month. It reminds drivers of the snowballing consequences that can await those who get behind the wheel after drinking, including job loss, a criminal record and prison. Our message this Christmas is simple: if you’re going to drink, don’t drive.

May I take this opportunity, Mr Speaker, on behalf of all my colleagues, to wish you and all the members of staff a merry Christmas and a contented new year?

[Eric Ollerenshaw]

Labour-run Lancashire county council is purporting to cut its subsidised bus routes by 50%, which means that most of the villages and outlying council estates in Lancaster will have no buses in the evenings or on Sundays. Is it not about time for a serious review of the need to maintain vital bus services for rural and difficult-to-reach areas?

[Mr McLoughlin]

I am grateful to my hon. Friend, who makes a very important point. The truth is that, while we have seen a huge amount of growth in the railways, more people are using buses every single day, particularly in rural areas and rural communities, which rely on bus services. My hon. Friend raises important issues and his ideas certainly merit further consideration.

[Mr Nick Raynsford (Greenwich and Woolwich) (Lab)]

T2. As we are on the subject of Christmas largesse, could the Secretary of State explain why the Airports Commission, as part of its costing for extra capacity at Heathrow, gave the airport an extraordinary present by excluding the cost both of the rail link to HS2 and of motorway enhancement around Heathrow but included such surface access costs in its assessment of the alternative in the Thames Gateway?

[Mr McLoughlin]

I am not responsible for the Airports Commission report—it is an independent report—but I will certainly draw the right hon. Gentleman’s comments to the attention of Sir Howard Davies so that he can consider whether his report properly reflects all the arguments.

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

T3. The London Cycling Campaign’s safer lorries, safer cycling initiative has measures for improving safety for cyclists. Will the Department commit to working across Government to ensure that all of our contractors and our supply chain sign up to this initiative?

[Mr Jim Cunningham (Coventry South) (Lab)]

T8. Will the Minister look into the situation in the west midlands, particularly in Coventry, where pensioners’ free rail passes seem to be under some sort of threat, and will he discuss that with Ministers from the Department for Communities and Local Government?

[Mr McLoughlin]

I am sorry to say that I did not quite catch all of the hon. Gentleman’s question, but I will certainly look into the points he makes. Perhaps he and I could have a discussion after this question session.

[Karen Lumley (Redditch) (Con)]

T4. Happy Christmas, Mr Speaker.May I support the earlier call for Birmingham International station to be renamed Birmingham Airport, but will the Secretary of State work with me to ensure that that happens now, even before HS2 is built?

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[Geoffrey Clifton-Brown (The Cotswolds) (Con)]

T5. Mr Speaker, may I wish you and the staff of the House a happy Christmas?Following the Secretary of State’s very kind meeting with the two constituency Members of Parliament to discuss the missing link on the A417/A419 between the M4 to the M5, he asked us to establish local consensus, and we have started to do so. This week, Cotswold district council unanimously passed a motion supporting the brown route. The local enterprise partnerships are beginning to come on board, as are Members of Parliament from the wider area. Will the Minister say whether his Department is looking into the feasibility of the link?

[Mr McLoughlin]

Following my meeting with my hon. Friend and my hon. Friends the Members for Stroud (Neil Carmichael), for Gloucester (Richard Graham) and for Tewkesbury (Mr Robertson), I am pleased that he is moving in the right direction with that consensus, and I will certainly work with him to see whether we can get the long-term answer that he desires.

[Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)]

Tragically, it is not just in London that cyclists have been killed in accidents involving HGVs; there were two cases not so long ago in Edinburgh. Will the Minister ensure that his focus is not just concentrated on London, but looks at what can be done across the country, particularly in Scotland, where although spending is devolved, such legislation is still a reserved matter? Will he ensure that he works with the Scottish Government to ensure a similar focus on preventing the deaths of cyclists caused by HGVs?

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[Ian Lucas (Wrexham) (Lab)]

Will the Secretary of State meet me to discuss the Wrexham-Liverpool line, where capacity constraints are inhibiting further development of one of the strongest industrial areas in the UK?

[Mr McLoughlin]

I would be delighted to meet the hon. Gentleman to discuss that point. I would point out that we are spending a huge amount of money on train services that link into the north. The northern hub will bring a substantial improvement. Huge improvements are also going on at Manchester Victoria station.

[Mrs Cheryl Gillan (Chesham and Amersham) (Con)]

T9. Sir David Higgins takes up his job as the head of HS2 in January with instructions to bring the costs of HS2 down. Will the Secretary of State promise that any reductions or savings will definitely not come from the compensation for people whose lives are affected by HS2 or from the costs of protecting and restoring our precious environment?

[Mr McLoughlin]

As I said earlier, one of the reasons the costs have increased, which my right hon. Friend often attacks, is that we have gone to extra lengths to protect the environment. There will be a huge amount of tunnelling in her constituency, which will cost more money. Sir David Higgins is a well respected engineer and has been a leader of great projects in our country, including the Olympics, which were delivered on time and below budget. I am sure that when he takes up this post, he will bring that expertise to the job.

[Mr David Hanson (Delyn) (Lab)]

Will the Transport team look at two places where we could link the north-west of England with north Wales? The first is the Halton curve, which my hon. Friend the Member for Halton (Derek Twigg) mentioned, and the second is the Wrexham-Bidston line. Like Scrooge, I am not asking for those things for Christmas past or Christmas present, but perhaps, in the spirit of Christmas, the Secretary of State could look at those issues for Christmas future?

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[Julie Hilling (Bolton West) (Lab)]

Electrification is very welcome, but it is creating mayhem in my constituency, with cuts to services and terrible overcrowding. The Prime Minister told The Bolton News:

“I will go away and look into it.”

However, the Under-Secretary of State for Transport, the hon. Member for Wimbledon (Stephen Hammond), has washed his hands of the issue and said:

“It is for Network Rail and operators”

to solve the problem. Who is right and who will provide more rolling stock for my constituents?

[Mr McLoughlin]

If one is quoting the Prime Minister and the Secretary of State or any other Minister, it is usual to assume that the Prime Minister is right. I will look at the case. The hon. Lady is right that we cannot make such major improvements without causing inconvenience. However, at the end of the day we will get a far, far better railway. I am pleased that we are investing in the electrification of the railways, which the last Government singularly failed to do.

The Leader of the House was asked—

Transport Infrastructure

Lord McLoughlin Excerpts

Tuesday 17th December 2013 Commons Chamber

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

With permission, Mr Speaker, I would like to make a statement about the work of the Airports Commission. I will also give brief details of my written ministerial statement from this morning on Network Rail’s reclassification.

In September last year, Sir Howard Davies agreed to chair an independent Airports Commission. That commission was asked to examine how the UK’s status as a leading global aviation hub can be maintained, and this morning it published its interim report. I have deposited copies of that report in the Library, and it is available on the Airports Commission’s website. I know this issue is central not only to our nation’s economic future but to those who use or work in airports, or who are affected by the impact of airports on their lives.

The UK is a leader in aviation, with the third largest aviation network in the world. The sector contributes £18 billion per year to our economy, and employs around 220,000 workers directly and many more indirectly. We need airports that put our country at the front of global competition and allow people to get to where they want to go. We also want airports that are quieter and meet our carbon commitments. Today’s report is an important step towards both goals.

Many Members of the House and their constituents hold strong views about the right outcome, and it is right that we respect that. I will be writing to invite Members to a briefing session early in the new year, when Sir Howard will explain the contents of the commission’s report in more detail. I take this opportunity to thank Sir Howard and his fellow commissioners—Sir John Armitt, Professor Ricky Burdett, Vivienne Cox and Dame Julia King, and Geoff Muirhead who stood down in September—for the care they have taken. Their interim report is a detailed and professional piece of work based on careful research, and it merits the fullest consideration.

It may be helpful if I provide a brief overview of the key issues that have been addressed. First, the interim report provides the commission’s advice on the level of future airport capacity this country will require, which is based on new evidence about a rapidly changing industry. The commission has also consulted a wide range of people and organisations, and as a result it offers a clear recommendation that there is need for new runway capacity in the medium term to support continued competitiveness and prosperity. We will, of course, be looking carefully at that recommendation and at how best we can take decisions that are in the long-term economic interest of the country, while respecting the environment and quality of life. Sir Howard is also clear in his report that there is no crisis of capacity now. He does, however, conclude that we will need one additional runway in the south-east by 2030, and in all likelihood a second by 2050. The commission is clear that those recommendations can be consistent with the UK’s climate change obligations.

Secondly, the commission has announced which long-term options it intends to take forward in the second phase of its work. The first option is Gatwick Airport. The commission will consider a new runway spaced sufficiently south of the existing runway to permit fully independent operation. The second and third options are for Heathrow Airport. The Commission will consider, first, a new full-length runway to the north west of the existing airport, as proposed by Heathrow Airport Ltd, spaced sufficiently to permit fully independent operation; and secondly, an extension of the existing northern runway to the west, as proposed by Heathrow Hub Ltd, which would allow it to be operated as two separate runways, one for departures and one for arrivals.

Options for the construction of a new airport in the Thames estuary have not been shortlisted by the commission at this stage. However, the commission intends to carry out further analysis of the feasibility and impacts of a new airport on the Isle of Grain and aims to reach a decision in the second half of 2014 on whether this constitutes a credible option for further development and detailed study. If this option is then added to the shortlist, it will be subject to a process of appraisal and consultation similar to that proposed for other shortlisted options. In phase two of its work, the commission will undertake detailed analysis and consultation on each of these locations, in partnership with promoters. It will also, of course, work with local communities and listen to their views.

On the third key issue, the commission also recommends action to make better use of our existing aviation infrastructure, particularly over the next five years. I welcome this fresh thinking, much of which is aimed at industry as much as the Government, about how we can make improvements to our already strong aviation sector. The commission has produced some interesting ideas including: the better use of airspace to improve resilience at London airports; trials at Heathrow airport to smooth the early-morning arrival schedule to minimise stacking and delays and to provide more predictable respite for local communities; and an independent aviation noise authority to improve decision making on noise issues. These are important recommendations that merit a response in advance of decisions on longer-term capacity. The Government will consider the short-term recommendations in detail and respond to them by the spring of next year. Finally, the commission proposes improvements to surface access to airports. The Government set out their initial response to these recommendations in their national infrastructure plan, published earlier this month.

I would also like to set out how we intend to address the concerns of people who live around sites subject to further consideration by the commission. Now that the commission’s report has been published, we will be working closely with promoters to consider the form and scale of any appropriate relief that might be put in place, and we will set out our thinking on this important issue in our response to the interim report.

I know that colleagues on both sides of the House will have their views on the content of the commission’s interim report, and in particular on the choices made in shortlisting those options. My principal concern as Secretary of State for Transport is to protect the integrity and independence of the commission process through to the final report, which we expect to be delivered by summer 2015. The Government will not therefore be commenting, either today or in responding to the interim report, on the respective merits of the options that have and have not been shortlisted. Given the vital importance of aviation to our nation, I urge colleagues to engage positively with the work of the commission as it moves into the next, equally important phase of its work. The variety of views in the House and beyond about the right way forward is proof that an independent commission, rather than ill thought out actions that might suggest other alternatives, is the right way forward. The commission process offers us the best chance we have to get this decision right.

I turn briefly to a second issue. Hon. Members will also be aware that today the Office for National Statistics announced that from 1 September 2014 Network Rail will be reclassified and appear on the Government’s balance sheet. As the Treasury and the Office for Budget Responsibility noted when my right hon. Friend the Chancellor made his autumn statement, this includes the company’s net debt of some £30 billion. I laid a written ministerial statement this morning, and I published a memorandum of understanding with Network Rail on my Department’s website and placed copies in the Libraries of both Houses. The MOU shows how my Department will work with Network Rail until its reclassification in September 2014. This independent, statistical decision will not affect Network Rail’s investment programmes, plans for High Speed 2 or the franchising programme.

The Government will continue to deliver vital improvements to all modes of transport so that transport can remain the engine for economic growth that it is. I commend this statement to the House.

[Mary Creagh (Wakefield) (Lab)]

I thank the Secretary of State for giving me notice and advance sight of his statement. I welcome the interim report from Sir Howard Davies. This is important work, and we will scrutinise it closely. It is vital that we take decisions about our airport capacity, including in the south-east, as it is important for Britain’s jobs, growth and competitiveness. Britain’s status as a global centre of aviation should be maintained.

It is good to see that the original Heathrow proposal for a third runway to the north of the current airport, which we were sceptical about, has been taken off the table. We also welcome the fact that this work takes into account our climate change obligations. As the commission now looks at specific proposals in more detail, we urge it to take into account the need to minimise the impact of increased capacity on local people and the environment. We are glad that the Government accepted our proposal to establish the commission, and we will look carefully at the report. The commission must be allowed to get on and complete its work on the long-term future of UK aviation.

Will the Secretary of State explain the exact status of the plans for an airport in the Thames estuary? I also want to ask him about the commission’s short-term recommendations. Will he introduce legislation in the Queen’s Speech in May to set up an independent aviation noise authority? If so, which Bill will contain the proposals? Can he say more about the optimisation strategy to improve the efficiency of UK airports in the short term? Communities that are currently affected by aviation noise want to know the Secretary of State’s position on additional night flights and on compensation for communities. Will he draw up plans to ensure that EU limits on air pollutants from existing aviation are met, as recommended by the Transport Select Committee?

On the reclassification of Network Rail, given that the Government already guarantee Network Rail’s debt, will its cost of borrowing now fall as a result of today’s announcement? Will the Government’s fiscal rules be changed to take account of the changes to debt and borrowing? Will today’s change affect the deficit? Will the Government and the Office for Budget Responsibility continue to publish borrowing and debt figures excluding these changes, as they have done with the transfer of the Royal Mail pension scheme, so that the underlying changes in borrowing and debt are transparent? Will the Government be taking any additional powers to direct Network Rail’s borrowing now that it will be on the Government’s books, or will the reclassification mean that Network Rail’s borrowing and debt have to be offset by further cuts and tax rises elsewhere? Could the change mean less money being available to invest in the railways? Can the Secretary of State guarantee that passengers will not face higher fares to pay for the debt reclassification? Does he anticipate any structural changes to Network Rail that would take the debt off balance sheet in the future?

The Secretary of State’s memorandum of understanding announced the appointment of an accounting officer to satisfy Parliament’s accounting and budgeting process. When will that person be in post? What will the audit arrangements be? When can we expect decisions from the Secretary of State on whether to appoint a special director to Network Rail, and on whether he will change the framework for Network Rail executives’ pay and bonuses? How many of them are currently paid more than the Prime Minister? Will he now personally sign off on their pay and bonuses? Can we expect greater transparency in the way in which Network rail operates? Who will be accountable for Network Rail’s performance? Will he tell us who is now responsible for safety on the railways? Is it Network Rail executives, Network Rail members, the permanent secretary or the Secretary of State himself?

[Mr McLoughlin]

I thank the hon. Lady for her—I am not quite sure how many—questions. A number were on Network Rail, on which I may respond a little later. It is always amazing to hear the way in which the hon. Lady tries to rewrite history. I notice today that she has said in a press release that it is good to see that the original Heathrow proposals for a third runway

“of which we were sceptical”

have been taken off the table. I cannot help but go back to the manifesto on which the hon. Lady fought the last general election; a manifesto written, I think, by the current Leader of the Opposition. The manifesto says:

“We support a third runway at Heathrow, subject to strict conditions on environmental impact and flight numbers”.

Something about which they are now sceptical was actually a core part of their transport manifesto at the last general election. I know that there is a rewriting of history going on but when something appears in the manifesto, it is usual to try to stick to it.

On the welcome for the setting up of Sir Howard Davies’ commission, I do not remember the calls for it initially; I think that the idea was put in place by my predecessor and was announced by me when I became Secretary of State for Transport. I am glad that the hon. Lady welcomes the report because this is a big infrastructure issue that takes time to develop. It takes time to work through all the proposals and it is right that we try, if possible, to get as much consensus as we can across parties. One of the commissioners did a report for Labour on infrastructure spending that was published not so long ago. I welcome the hon. Lady’s points on that.

On the Thames estuary proposals—the Isle of Grain— Sir Howard has said this morning in interviews and in the report that he would hope to have a view on that by the middle of next year and we will then know on which route we are going.

With the Leader of the House and the Chief Whip here, I am not at this stage able to announce what may or may not be in a future Queen’s speech. I did say that I will respond by the spring to some of the points that Sir Howard has made in the report and I shall stick by that commitment.

The hon. Lady asked me a number of questions about Network Rail. There will be more time for us to debate this issue as the change comes into operation from September 2014. But as I am here today making the statement, and as I have made a statement on the Office for National Statistics recommendations, which came through only this morning, I will be happy to deal in more detail with specific points that she raised on a number of issues.

One of the things that the Government and I are keen on is that over the next four years in the CP5 phase of Network Rail’s expenditure, it will invest £38 billion in the railways, far more than it has been investing for some years. That certainly is under no threat whatsoever. We will still see record levels of investment taking place. Some of the other questions the hon. Lady asked are on issues that the hon. Lady I am considering.

[Mr Simon Burns (Chelmsford) (Con)]

Will my right hon. Friend accept that too many Governments of all political parties have fiddled around on the question of airport capacity for too long, which is why the commission is to be welcomed so much? But does he agree that when the final recommendation is made, we need to seek political consensus across the chamber to be able to move forward as quickly as possible? How does he think that consensus can be achieved?

[Mr McLoughlin]

There may be a consensus, but there will always be a certain number of people who are against a consensus. I am not necessarily sure that one gets total consensus on any infrastructure project. It often depends on how it impacts on individual constituents, which is something we have to take into account. We should not run away from that. I hope that, as a result of the detailed work that is being done by the commission and the fact that it is being as open as possible in its dealings with everybody, it will be seen that it is doing a proper and constructive job and will enjoy widespread confidence. Today has been a good example of that, in the way that the shadow Secretary of State has welcomed the initial findings of the report.

[John McDonnell (Hayes and Harlington) (Lab)]

At a minimum, according to the report, 2,000 of my constituents will lose their homes, which will be demolished. That could rise to perhaps 10,000 because of homes being rendered unliveable by noise and air pollution. Two primary schools will be demolished, with perhaps two more being rendered unfit to teach in. The threat returns that we may have to dig up our relatives buried in the local cemetery. Where will my constituents find a home? Where will my constituents send their children to school? Where will we bury our dead? Does he appreciate the sense of betrayal that is felt in my community?

[Mr McLoughlin]

I know that the hon. Gentleman has spoken very sincerely about this on behalf of his constituents. However, he is prejudging the outcome of the report. The report has not said which option it has gone for. It has come forward with three shortlisted options and another option that will be looked at in the longer term. This is not a fait accompli. The commission’s work will continue over the next 18 months.

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

Bearing in mind that the recommendations of the Roskill commission on airport capacity were rejected by successive Governments, does my right hon. Friend accept that until the first concrete, and lots of it, is poured, uncertainty will not be removed from many of the locations that are mentioned by Sir Howard Davies today? To echo the sentiment of my right hon. Friend the Member for Chelmsford (Mr Burns), will my right hon. Friend work extremely hard to get bipartisan acceptance of the final recommendations?

[Mr McLoughlin]

Not only will I try to get bipartisan agreement, I will try to get tripartisan agreement. I shall not just look at any two parties. I hope that that is the way in which we can move forward. My right hon. Friend has huge experience of this issue and has often made the case for protecting Stansted airport.

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

The Davies commission report includes a shortlist that has on it the recommendation of the Transport Committee for expanding Heathrow, and confirms the importance of connecting the economy of this country with the emerging economies in India, Brazil and China. Does the Secretary of State agree that taking no action means that this country continues to lose out? When does he think the decision should be made?

[Mr McLoughlin]

I am sorry; I missed the last bit of the hon. Lady’s question. [Hon. Members: “When do you think the decision should be made?”] I know that the Transport Committee will be seeing Sir Howard at one of its meetings in the early part of January. I agree with the hon. Lady; we will be responding early next year to the recommendations on which Sir Howard has asked us to come to a view.

[Dr Julian Huppert (Cambridge) (LD)]

The Government was absolutely right to scrap Labour’s plans for a third runway at Heathrow. I very much welcomed the Prime Minister’s statement:

“No ifs. No buts. No third runway”.

I assume the Prime Minister meant it. What assurance can the Secretary of State provide that nothing will be done to breach the Committee on Climate Change recommendations?

--- Later in debate ---

[Mr McLoughlin]

It is important that everything that Sir Howard is looking at is contained within our climate change obligations. Aircraft are changing; their emissions are changing. What is very unenvironmentally friendly is stacking aircraft above London that are pumping out emissions into the atmosphere.

[Mr Alistair Darling (Edinburgh South West) (Lab)]

The Commission appears to be recommending another runway at Heathrow, which is exactly where we were 10 years ago. The proposal on Gatwick appears to be “in addition to” rather than “instead of” the proposal at Heathrow. I notice that the Secretary of State studiously avoided expressing an opinion and I understand that he wants to await the outcome of the commission. However, could he tell us whether or not the Government think that the commission is on the right track? Clearly if it is not, it would be better to tell it now, rather than wait until 2015. I join everyone in this House who believes that, 50 years after the Government first looked at what should happen to London airport, we need to make a decision, and we should do so as soon as possible. If we do not, we will fall behind the rest of the world.

[Mr McLoughlin]

I am always slightly cautious in the answers I give to the right hon. Gentleman, who has the distinguished record of being one of the longest-serving Transport Secretaries of recent times. I would point out, however, that when he was Secretary of State and the 2003 White Paper was published, there was only one mention of Dubai. Things have changed hugely in aviation over the last few years, which is why it was right to set up this commission. The right hon. Gentleman was wrong on his original assumption: Gatwick is an alternative—it is not necessarily a case of Heathrow and nothing else—as is the Thames estuary.

[Mrs Cheryl Gillan (Chesham and Amersham) (Con)]

The commission report places great importance on the success of all the options it is still looking at through effective and integrated surface transport links. So much so that the commission, which I understand is carrying out, in the Secretary of State’s own words, work that merits the fullest consideration, now intends to examine the HS2 line and the possible HS2 spur to Heathrow. Surely the Government should now wait until this work is completed and the final decision on airport capacity is made before pressing ahead with a high-risk £50 billion project that might end up being built in quite the wrong place.

[Mr McLoughlin]

I refer my right hon. Friend to page 202 of the report. I thought that she would raise this issue, so I refer her to paragraph 6.94:

“A high speed rail spur from the main HS2 line to the airport is not included in the cost estimate, but the Commission will consider the case for this as part of its review of surface access options. It will not, however, consider the case for any re-routing of the main HS2 line.”

I believe that it is a vital part of the national infrastructure of the United Kingdom.

[Caroline Lucas (Brighton, Pavilion) (Green)]

Is the Secretary of State aware that some of the UK’s leading companies have cut their flights by an average of 38% over the past three years, and does he not recognise that his reckless enthusiasm for new runways will not only cause huge harm for the local communities involved, but shows this Government lagging far behind progressive companies that understand the urgency of climate change and are reducing their number of flights on economic as well as environmental grounds?

[Mr McLoughlin]

The hon. Lady needs to look at the passenger numbers through the terminals. At Heathrow in 1992, for example, there were 45 million in comparison with 70 million in 2012. At Gatwick in 1992, passenger numbers were 19.9 million, but 34.2 million in 2012. People still want to travel. I am sure that the hon. Lady has holidays only in the United Kingdom and never travels abroad, but a lot of people like the option to go abroad.

[Sir Roger Gale (North Thanet) (Con)]

Sir Howard reminds us that Heathrow is 100% full and Gatwick is 85% full. A new build of any kind anywhere is going to take an absolute minimum of 10 years and probably longer. We are losing business to Schiphol, Charles de Gaulle and Dubai now. We have to get to chapter five, paragraph 5.91 on page 163 before we find a paragraph that mentions other airports, and it is dismissive. Manston airport in Kent has the capacity—now, as we speak—to take business from Gatwick and Heathrow to release the capacity we need and to build in the time we need for the right decisions to be taken in the longer term. Will my right hon. Friend please look at it seriously?

[Mr McLoughlin]

The commission has looked at a number of options. I draw my hon. Friend’s attention to the conclusions on page 102, where it is made clear that the UK does not face an immediate capacity crisis. Sir Howard and the whole commission are clear that we need to take this decision so that we have the option of a new runway by 2030. That is exactly what we will be doing.

[Mr Andy Slaughter (Hammersmith) (Lab)]

For my constituents, today’s report is proof that the Heathrow lobby’s hold over the Conservative party never went away. The hands of the Prime Minister and the Chancellor are all over this report. One third of those seriously affected by airport noise in Europe live around Heathrow. What is the Secretary of State offering to the 2 million people in west London other than a continued deterioration in their quality of life by the expansion of Heathrow.

[Mr McLoughlin]

I remind the hon. Gentleman that he fought the election on the basis of a manifesto saying that there would be a third runway at Heathrow airport. Before he gets on his high horse about what I am doing, perhaps he should consider what that manifesto said. As I have said, the simple fact is that we need to do everything we can to alleviate noise problems; we need to look carefully at the eventual recommendations of the final report. We do not yet have the final recommendations; the time to conduct this type of debate is when we get them.

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

My first impression is “so far, so depressing”. I know that this is only an interim report, but my constituents will note that Heathrow is yet again emerging as the favoured option. I should also say that the two options for Heathrow that are flagged up in the report will both be particularly bad news for my constituents in Ealing, Chiswick and Acton. Let me ask my right hon. Friend: what on earth more do my constituents have to do to get their message across that any expansion of the noise, pollution and congestion that goes with Heathrow and blights the whole of west London would simply be intolerable?

[Mr McLoughlin]

I am grateful to my hon. Friend, and I understand the passion that she and other Members feel about this issue. It is right for us to try to look at and address these issues. We have to see what is happening with aviation noise and how it should be judged. That is why I am very interested in some of the commission’s interim proposals. It will take longer to take a view on that, but I hope to be able to come back in the spring to announce the way forward. This is a very difficult job because these issues have been around for some time. It is right to conduct a proper investigation and, I hope, come up with the right alternative at the end of the day.

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

As Government after Government have ducked this issue, our main European competitors have built many runways, while our new competitors in the middle east have built even more of them. Does the Secretary of State agree that the only way to break this logjam is for both the major political parties represented in this Chamber to give a commitment to accept the conclusions of the Davies report?

[Mr McLoughlin]

I agree with the hon. Gentleman, who served for a long time on the Transport Select Committee. I certainly agree with him that it would be good if we could reach a consensus on this matter. Whatever option we come up with will impact on people’s lives and communities. We need to try to do everything we can to address and relieve it, but we also need to look at the options for the longer-term future offered by quieter aeroplanes, for example. An overall consensus would indeed be the best way to move forward on big infrastructure projects.

[Mr Crispin Blunt (Reigate) (Con)]

My right hon. Friend has repeatedly used the phrase “longer term” both in his statement and in replying to questions. The exam question to the commission was how the UK’s status as a leading global aviation hub could be maintained. By any standards on a long-term basis, the commission has failed. Its principal options simply cannot sustain the UK’s position as a long-term hub. The only hope remains the Isle of Grain option. When it comes to consideration of Gatwick, for example, someone will need to explain that doing up Gatwick station will not deal with the capacity issue on the Brighton main line or with the road issues. Someone will also have to explain where a town the size of Crawley is going to be placed.

[Mr McLoughlin]

My hon. Friend has just dismissed two options, but no doubt other hon. Members who may be called to speak a little later will dismiss the third option, which my hon. Friend refers to as the “only” option available. That is why we set up a commission—so that we could base our final decisions on proper researched evidence.

[Jack Dromey (Birmingham, Erdington) (Lab)]

The chief executive of Birmingham airport, Paul Kehoe, has described the Davies report today as focusing disproportionately on the south-east and entrenching the dominance of the south-east economy to the detriment of growth in the rest of the UK. The Birmingham chamber of commerce has said the same thing. Does the Secretary of State recognise that, in circumstances where Birmingham wants the expansion of its airport, which will be key to economic growth in the midlands, Britain simply cannot succeed through London and the south-east alone?

[Mr McLoughlin]

I am a passionate believer in the role of airports outside London. The first time I appeared before the Select Committee, I said that we should stop describing airports such as Birmingham and Manchester as regional airports, because they are major international airports in their own right. I want to see those airports—along with East Midlands airport—serving their local communities. On page 195 of its report, the commission says that it does not see

“a strong case for expansion at Birmingham”

at the moment, but that may well change by 2050. Moreover, being served directly by HS2 will give the airport a great opportunity for the future.

[Annette Brooke (Mid Dorset and North Poole) (LD)]

Will there be an independent assessment of the impact of any proposals on the carbon emission targets of the Committee on Climate Change?

[Mr McLoughlin]

The commission is taking all our carbon reduction obligations into account, as I would expect.

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

At the last general election, both coalition parties opposed an increase in runway capacity in the south-east. I think it is clear that the Conservatives have now realised that that was the wrong decision and have changed their minds, but the Liberal Democrats are still in denial. Most of us want the Davies commission to report earlier than the summer of 2015. Who set the deadline—the Secretary of State, Sir Howard, or the Liberal Democrats?

[Mr McLoughlin]

I note that the hon. Gentleman is now speaking from the Back Benches about a subject on which he used to speak from the Front Bench. When he was on the Front Bench, I challenged him to tell us, if his was such an easy solution, what proposals he would support. He was unable to answer that question from the Front Bench, but perhaps he will be able to do so from his more privileged position on the Back Benches.

[Zac Goldsmith (Richmond Park) (Con)]

I note the answer that the Secretary of State has just given, but does he not accept that no serious political party can go into the next general election without a clear opinion on an issue that matters to so many people and so many businesses in this country? That is simply not a credible position for any party to have.

[Mr McLoughlin]

I know my hon. Friend’s views on this matter, and I know that he fights passionately on behalf of his constituents. However, I think it right for us to try to obtain an answer that is, as far as possible, based on good evidence and good research. That is what the commission is doing, and it will report by the summer of 2015.

[Phil Wilson (Sedgefield) (Lab)]

According to the Davies report, London continues to accommodate the largest overseas destination market in the world. What more can be done to enable regional airports such as Durham Tees Valley airport, which is in my constituency, to have access to that market by ensuring that it is given Heathrow slots sooner rather than later? May I also ask the Secretary of State to discuss with his colleagues in the Treasury the possibility of varying the levels of air passenger duty around the country, which would help all United Kingdom airports?

[Mr McLoughlin]

I think that the biggest increases in APD occurred under the last Government rather than this one. At a time when we are trying to reduce the deficit, it is always easy to find ways of making cuts, but we must then find a replacement for that certain income. As for the hon. Gentleman’s question about regional airports, I remind him of what I said a few moments ago about their importance to local communities.

[Jason McCartney (Colne Valley) (Con)]

Does my right hon. Friend agree that the provision of more long-haul services from, for instance, Manchester airport, and Leeds Bradford International airport—which my constituents use—to China, India and the other emerging markets would help to ease all the congestion at London’s airports? Could that not be part of the solution?

[Mr McLoughlin]

It might play a role in easing some of the congestion, but the overall evidence shows that there is continuing growth in aviation traffic, and the commission is giving that careful consideration.

[Gemma Doyle (West Dunbartonshire) (Lab/Co-op)]

Will the Secretary of State consider seriously the issue of connectivity throughout the United Kingdom, particularly in relation to Scotland? Connections to the south-east are extremely important, and if we do not get a move on, we shall be in danger of strangling growth throughout the UK.

[Mr McLoughlin]

I understand exactly where the hon. Lady is coming from. Concern has been expressed in a number of regions about the accessibility of London. However, people could consider using other airports, such as Luton and Stansted.

[Sir Edward Leigh (Gainsborough) (Con)]

Do the Government accept the commission’s contention that a new runway needs to be built in the south-east before, or by, 2030?

[Mr McLoughlin]

I believe that what the commission has said is important, but we must await its final proposals and establish whether we can work to that deadline.

[Jim Shannon (Strangford) (DUP)]

Let me first thank the Secretary of State for his statement. He described the United Kingdom as an international aviation hub. What discussions has he had with representatives of Belfast City, Belfast International and City of Derry airports in Northern Ireland to ensure that the viable transport links to which he referred can be solidified and all regions can benefit from them?

[Mr McLoughlin]

Having responded to questions from the Northern Ireland Affairs Committee, I am well aware of the importance to Northern Ireland of its connections with London. I have had no direct conversations with the Northern Ireland Assembly, but I have of course listened to what colleagues in the House of Commons have had to say.

[Mr Bernard Jenkin (Harwich and North Essex) (Con)]

I commend the Howard Davies commission for recognising that the Isle of Grain cannot be lightly dismissed and merits further consideration. However, he said this morning, when comparing it with the other proposals, that the Thames estuary proposal was

“a much more extensive proposition for shifting the economic geography of the south-east of England by creating a new pole of economic development.”

Is that within the remit of the commission?

[Mr McLoughlin]

I should make it clear that by “he said”, my hon. Friend meant what Sir Howard Davies had said, rather than any words that I might have said.

The commission must look at the whole proposal, and it has said that it will do so, because it is completely different from the proposals that certain airports have been making themselves. The matter will be addressed in the report which Sir Howard has said he hopes to produce by next summer.

[Ms Gisela Stuart (Birmingham, Edgbaston) (Lab)]

I am not sure that I derive much comfort from the information that the expansion of Birmingham airport may be decided in 2050, by which time I shall be 95 years old. May I suggest something that the Secretary of State could do now? He could compel Network Rail to come up with a strategy to improve surface access to airports, so that those such as Birmingham which have spare capacity can be properly connected?

[Mr McLoughlin]

I am not sure that I wish to comment on the first part of the hon. Lady’s question—it might not be the thing to do from the Dispatch Box—but I will say that I know Birmingham airport very well, having used it on a number of occasions. It is not badly connected at present, but there is room for improvements, and I naturally want to think about ways of making those improvements. I believe that the direct connection between HS2 and Birmingham airport will give it the potential to develop in that way.

[Mr Speaker]

Order. The Chair must be very careful when it comes to these matters, but I must say that I found the age-related facet of the hon. Lady’s question utterly implausible.

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

A suppressed Cabinet Office report on HS2 raises major concerns about its risky construction timetable, its poor management and the insufficient work done on costs, and also questions the capability of those involved in the delivery of the project. Will my right hon. Friend tell us whether the Government are prepared to publish the report by the Major Projects Authority?

[Mr McLoughlin]

I do not think that there is any shortage of reports on HS2, be they from the National Audit Office, from the Transport Committee, or in the form of evidence given to the Treasury Committee. There is a huge number of such reports that people can consult rather than consulting a report that is more than two years old.

[Ian Austin (Dudley North) (Lab)]

Birmingham airport is right in the middle of the country and right next to the major motorways of the United Kingdom, and, with HS2, it will be within easy reach of the vast majority of the people who live in Britain. People living in the west midlands will be utterly staggered to learn that they must wait until 2050 for any consideration to be given to its expansion.

[Mr McLoughlin]

It is not a case of waiting until 2050 for any consideration of that airport’s expansion; what I said, and what the report said, is that there will be a need for a new runway in the south-east by 2030 and then probably for another runway in 2050, and at that stage that airport could be one of the considerations. But a huge amount is still going on at Birmingham airport. I am not going to talk that airport down now, and I do not want anyone else to do so. It has extended its runway and has a lot more availability, and I want it to be able to prosper, along the lines that other airports, such as Manchester, have done.

[Michael Fabricant (Lichfield) (Con)]

I very much agree with the comments made by the Chairman of the Transport Committee that the current situation is an option that cannot go on for much longer, but I also agree with comments made by Opposition Members about the connectivity with Birmingham. Given that senior engineers in HS2 doubt the efficiency, cost and environmental suitability of the route, would it not make sense to link HS2 directly not only from Birmingham to central London, but to whichever airport is chosen to have that third runway?

[Mr McLoughlin]

I am not sure which people in HS2 my hon. Friend is referring to when he says that they are opposed to the current route. We are committed to that route and have deposited the Bill before the House.

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

There is a widespread feeling that the airports issue is symptomatic of this country’s poor approach to long-term infrastructure planning. Clearly there will be winners and losers whichever decision is made, but the truth is that a decision will still need to be made. If we need two runways by 2050, will the Government make a provisional decision on both, thus finally bringing some long-term certainty to this issue?

[Mr McLoughlin]

I am not sure that we will make a decision on both of them in one go. As I say, the report is very clear: we will need an additional runway by 2030 and, in all likelihood, another by 2050. A number of things will have changed by then, so it would be wrong at this stage to start saying exactly what the runway beyond the next runway will be, because the infrastructure I have talked about, such as HS2, will be in place and other airports will come much more into play.

[Karen Lumley (Redditch) (Con)]

The Government are determined to build HS2, rebalance our economy and make Birmingham airport 38 minutes from London Euston. Does the Secretary of State share my concern and disappointment today that Birmingham airport was not included in the initial recommendations?

[Mr McLoughlin]

What I am seeing, and what I see nearly everywhere I go, is a strong lobbying exercise, or representation exercise, on behalf of Birmingham airport, and rightly so because it is a very good airport—I like it and use it regularly. What Birmingham has already done, through its expansion and extending the runway, means that it will be able to offer lots more services to the people of the west midlands, and I very much hope to take advantage of that.

[Chris Bryant (Rhondda) (Lab)]

Will most ordinary people listening to this debate not conclude that a politician who cannot make a decision is no more use than a chocolate teapot? If we are going to keep on procrastinating and if the Government cannot even decide that Boris island is not going to float, they have run out of steam.

[Mr McLoughlin]

Coming from somebody who was 13 years in a Government who refused to make—[Interruption.] The hon. Gentleman was 13 years in Parliament supporting a Government—avidly, on every occasion—who continually failed to take any decisions about major infrastructure projects, yet he now complains that this Government, who have made more progress on the railways and on aviation, are somehow slacking in making their decision.

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

Heathrow is crucial to the continued economic vibrancy of towns such as Reading and to foreign inward investment into the Thames Valley region. Airport capacity does need to expand, but so, too, does surface access to Heathrow. Will my right hon. Friend ensure that the Heathrow rail link to Reading and from the west is immediately brought forward from the 2021 timeline currently in progress?

[Mr McLoughlin]

My hon. Friend is a very big advocate of more infrastructure investment in Reading, where we are currently spending some £880 million on a major refurbishment of Reading station, which will greatly enhance the capabilities for surface access to Reading. However, I note his early applications for even more investment in his area.

[Paul Goggins (Wythenshawe and Sale East) (Lab)]

One issue that merits greater consideration than the half page given by the commission is the proposal for a temporary exemption from air passenger duty for new long-haul routes from airports outside London. Such an exemption would help airports such as Manchester to develop new routes to China. Will the Secretary of State make sure that this idea stays on the table?

[Mr McLoughlin]

The right hon. Gentleman, by his mentioning the proposal, has just done exactly that.

[Mrs Caroline Spelman (Meriden) (Con)]

The Davies report states that expansion at Birmingham airport would have a “relatively high” noise impact compared with the alternatives, but ironically a second runway would have taken the noise further way from areas of habitation. Will the Secretary of State look also at the road surface access to the existing extended runway, as that can currently be a source of gridlock at a very important transport node?

[Mr McLoughlin]

I will of course look at that important issue, as my right hon. Friend asks. Her constituency is very much affected by the entire road network around that area, and by the rail and airport expansion, so I will look seriously at the point she raises.

[Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)]

On the Network Rail statement, given the way in which responsibilities for rail services in Scotland are divided between the Scottish and UK Governments, how will responsibility for the net debt of £30 billion or its servicing be divided between those Governments?

[Mr McLoughlin]

I will write to the hon. Gentleman about that.

[Sir John Randall (Uxbridge and South Ruislip) (Con)]

I congratulate my right hon. Friend on coming to the House to make a statement on an interim report. I am delighted to hear him confirm that the Government have no set position on this matter, but I am sure he will be reassured to know that people in Hillingdon, including my honourable comrade, the hon. Member for Hayes and Harlington (John McDonnell), will be dusting off the campaign material and once again proving that any expansion at Heathrow is politically and environmentally undeliverable.

[Mr McLoughlin]

My right hon. Friend and the hon. Gentleman will be a formidable team in their campaigning approach to this matter. I know they will do so, but I also urge them to submit their views to the commission as it moves to its next phase in preparing its final report.

[Ian Lucas (Wrexham) (Lab)]

The Aerospace Growth Partnership, with strong environmental safeguards, is supported by all three main parties—even the Liberal Democrats have signed up. My hon. Friend the Member for Blackley and Broughton (Graham Stringer) made the good suggestion that all three parties should commit to the outcome reached by the Davies inquiry. Will the Secretary of State explore that with all main parties?

[Mr McLoughlin]

Yes.

[Lorely Burt (Solihull) (LD)]

I thought that Sir Howard’s remit was to examine the need for aviation provision for the whole UK economy, so does my right hon. Friend share my disappointment that he seems focused on the self-fulfilling prophecy that growth feeds further demand in the south-east? Does my right hon. Friend share my wish for further consideration to be given to growth in resurgent economies, and, thus, to Birmingham international airport, for the midlands, and to other regional airports and economies?

[Mr McLoughlin]

The commission has had to work on the basis of what is actually happening in aviation: Heathrow has 99% usage and Gatwick is also filling up, but other airports in London are not as busy at the moment. So it is right that the commission has done the overall work and the proper work, and has made an interim suggestion. The Davies commission does also talk about the importance of regional airports, and nobody is denying that; I would much prefer more services to be available for people so that they would not necessarily have to travel into London to use an airport of demand. However, the availability of services does attract a lot of passengers to airports in the south-east.

[Andrew Gwynne (Denton and Reddish) (Lab)]

New airport capacity must go hand in hand with our efforts to reduce CO₂ omissions from aviation, as the Secretary of State mentioned in his statement. Given that his Government abandoned the UK’s target to be at or below 2005 levels by 2050, what guarantees can he give to the House to ensure that those considerations are included in the final plans?

[Mr McLoughlin]

If the hon. Gentleman takes time to reflect and to look at the various appointments to the commission, he will see that we have taken incredibly seriously the environment and our environmental commitments.

[Martin Vickers (Cleethorpes) (Con)]

I invite my right hon. Friend to expand a little on the role of regional airports. Will he give an assurance that the Government will recognise the important role that smaller regional airports can play, not just in easing the burden on traffic to the south-east but in providing economic growth to areas such as the Humber region?

[Mr McLoughlin]

I cannot add very much to what I have said already. I agree with my hon. Friend, but it is difficult for some regional airports to attract new services. That is one of the big changes that we have seen as far as the aviation industry is concerned, and I am keen to do anything I can to encourage those regional airports to be able to provide more services.

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

In that regard, Birmingham could cater for two thirds of the projected passenger increase from building a new runway at Heathrow at less than 2% of the £6 billion cost, without the need to demolish schools, villages or homes. Why are those considerations not worthy to be looked at now?

[Mr McLoughlin]

Those considerations were looked at by the commission, and there is someone on the commission who works in Birmingham.

[Several hon. Members]

rose—

--- Later in debate ---

[Mr McLoughlin]

My hon. Friend is absolutely right. One thing that causes too much pollution is stacking aircraft. Through better traffic management and longer traffic management of aircraft, a lot has been done to improve the flows into airports so that there is orderly access and entry into Heathrow, but more work can be done on that. That is one of the interim recommendations of the commission.

[Huw Irranca-Davies (Ogmore) (Lab)]

In his statement, the Secretary of State rightly described the increase in airport capacity in the south-east as the “engine for growth”. The same applies in south Wales. Will he directly engage with the Welsh Government on how Cardiff airport can develop its services so that it can play its part in both UK and regional growth?

[Mr McLoughlin]

That matter is now in the domain of the Welsh Assembly. I am due to meet its Transport Minister, who will no doubt want to discuss the issue, some time in the new year.

[Mark Reckless (Rochester and Strood) (Con)]

Can the Mayor of London expect any Government money to promote his imaginative proposal, and if so, could we also have some in Medway? Given that the page numbers in the Secretary of State’s report are different from those I got from the commission, can he shed any light on the late change in the report to include a Grain option and tell us whether meetings with the Prime Minister and the Chancellor last week played any part in that?

[Mr McLoughlin]

It is true that my report did not come off a PDF document, but I am not sure whether the page numbers differ from those in the report received by my hon. Friend. How the Mayor of London spends the considerable amounts of money that he has at his disposal is a matter for him.

[Jessica Lee (Erewash) (Con)]

Does my right hon. Friend agree that within these important considerations about aviation expansion fits the complementary issue of supporting nationwide infrastructure? With that in mind, will he assure the House that Ilkeston train station is on target for opening at the end of 2014? Such news will perhaps bring a bit of extra festive cheer to the good people of Erewash.

[Mr McLoughlin]

I assure my hon. Friend that everything I have said about Network Rail and its reclassification will have no impact on the courageous campaign that she has mounted to get a railway station open in Ilkeston by next December. When I was in Ilkeston recently, it was suggested to me that it should be called not Ilkeston station but Jessica’s junction.

[James Morris (Halesowen and Rowley Regis) (Con)]

I welcome the recommendation in the Davies commission on the use of existing airport capacity, particularly the reiteration of the support for Birmingham gateway. Does the Secretary of State share my disappointment that the commission has not been bolder in looking at Birmingham airport as a long-term solution? If we are considering options in London and the south-east, would it not have made more sense to have a credible option outside the area, because it could have a transformative effect on the west midlands economy?

--- Later in debate ---

[Mr McLoughlin]

I am pleased to see the Birmingham lobbying exercise spread across the whole of the west midlands. There is clearly a united front on the matter. I know that Sir Howard will look at the exchanges today, but there is nothing to stop Birmingham airport expanding; indeed, I encourage that. At the moment, the airport is not utilised to its full capabilities. Many more services can be provided from Birmingham now that the extension of the airport has been completed.

[Stuart Andrew (Pudsey) (Con)]

The aviation White Paper in 2003 stated that expansion of Leeds Bradford airport would need surface access improvements, yet we have seen very few. In this report, chapter 5 makes specific reference to surface access to other airports and recommends that the Government work with local authorities to ensure that such improvements take place. Will the Secretary of State make sure that Leeds Bradford airport will be looked at, because my constituents have to suffer many people going past their homes on very overcrowded roads?

[Mr McLoughlin]

Following my hon. Friend’s representations, I am delighted to give him the assurances that he requires. I will also come to his constituency and look at the situation there.

[Jackie Doyle-Price (Thurrock) (Con)]

The Mayor of London claims that Heathrow is a planning error. It is not; it is our hub airport. As my right hon. Friend is well aware, the Thames estuary is home to some significant ports infrastructure. Is it not to be hoped that the Davies commission rules out, once and for all, a Thames estuary airport, particularly as we already have an excellent airport at Southend?

[Mr McLoughlin]

As I have said to various colleagues, everyone will have an opinion if they have something in their own localities. I will await the outcome of the commission’s report, but I take what my hon. Friend has said seriously.

[Mr David Nuttall (Bury North) (Con)]

Let us forget Birmingham and Leeds Bradford and get back to Manchester. Given that Heathrow is already operating at full capacity and it is likely to be years before any option being considered by the Davies commission is built, may I ask my right hon. Friend what steps he is taking to encourage greater use of these regional airports—or major international airports as he calls them? May I suggest that a useful and popular first step would be to reduce airport passenger duty for new long-haul flights from regional airports, which would not cost the Treasury anything because they do not exist at the moment?

[Mr McLoughlin]

I am always keen to hear about schemes that cost no money whatever. Colleagues often convince me of a scheme but, unfortunately, when I go to the Treasury the idea is usually dismissed in fairly short terms. None the less, I understand my hon. Friend’s point. The truth is that Manchester has expanded and is, without any doubt, now a major international airport. I am just sorry that no one has mentioned East Midlands airport, which is also owned by Manchester airport.

[Neil Carmichael (Stroud) (Con)]

Forty years ago, a Labour Government cancelled the Maplin airport project, thus creating the situation we now have with under-capacity. Now that we have a second chance to get this right, does the Secretary of State agree that any report from Sir Howard’s commission should include a proper analysis of the advantages of a new airport east of London?

[Mr McLoughlin]

As I have said and as Sir Howard has been at pains to say in his statements today, if this was an easy decision it would have been taken some time ago. It is not an easy decision to take. It is right that we should consider all the facts and our environmental commitments, too, and that is the work that the commission has embarked on.

[Robert Halfon (Harlow) (Con)]

Will my right hon. Friend commend the Manchester Airports Group for its new stewardship of Stansted airport? Although I note that the report suggests that an extra runway is environmentally unsustainable and economically unviable, it also considers the expansion of the existing runway. If that happens, will my right hon. Friend ensure that the Government invest in the infrastructure on the M11 and the railways and ensure that local people are employed to help with the extra expansion?

[Mr McLoughlin]

I certainly commend Manchester Airports Group for how they have taken over Stansted and I hope that they will continue the public engagement with people from around the area. At the moment, it is estimated that there is room for growth at Stansted without any extra runway capacity. My hon. Friend makes the point about how important airports are for jobs and for giving people opportunities.

[Mr Philip Hollobone (Kettering) (Con)]

Given the crucial role that Network Rail plays in the provision of Britain’s transport infrastructure, not least at the moment through the necessary but highly disruptive work in Kettering in preparation for the welcome electrification of the midland main line, does my right hon. Friend think that it is as efficient as it might be in providing Britain’s railway infrastructure and does he regard its extraordinary and expensive corporate structure as fit for purpose?

[Mr McLoughlin]

As I announced in my statement, Network Rail has been reclassified and is charged with some important projects. My hon. Friend refers to the electrification of the line that serves both his constituency and mine, but I would also point out the big infrastructure jobs that Network Rail has undertaken, such as the closure for six weeks in the summer of Nottingham station and the complete resignalling in that area. That project came in under budget. The projects are very big and, obviously, certain consequences will flow from the changes. It is vital that there is no question but that the huge investment we have committed to Network Rail will be delivered over the next five years.

[Rehman Chishti (Gillingham and Rainham) (Con)]

The Secretary of State will be aware of the comments made by Sir Howard Davies, who said that the estuary airport would cost about £80 billion to £110 billion and would cause massive disruption. Do the Government have that amount of money to spend when there are other, better, environmentally friendly options? Those views are shared by my constituents in Gillingham and Rainham and the local authority, Medway council. They are bitterly opposed to that bizarre idea on those grounds and many others.

[Mr McLoughlin]

One thing that will have to be considered if such proposals are made is how they will be paid for. I am, however, aware that figures for transport infrastructure projects sometimes get greatly inflated. This one started off at about £75 billion, it has grown to £100 billion, my hon. Friend says that it is £110 billion and I have no doubt that by next week it will be around the £150 billion mark.

[Mark Garnier (Wyre Forest) (Con)]

In his statement, my right hon. Friend said that he is seeking political consensus on both sides of the House. By now, he will no doubt have gathered that there is practically political unanimity behind Birmingham airport. Is not the important point that rebalancing the economy of the UK is about not just regions but sectors? Significant expansion at Birmingham would rebalance the economy not just out of the south-east but away from the service sector, supporting our industrial heartlands in the midlands.

[Mr McLoughlin]

My hon. Friend makes yet another representation from the Birmingham grouping—[Interruption.] The Birmingham mafia, as Members say. As he knows, there is nothing to stop Birmingham airport expanding significantly. There is spare capacity there at the moment and it has to attract carriers in to the airport. I am keen to see it do that and for that to become available to the whole of the west midlands.

[Mr Marcus Jones (Nuneaton) (Con)]

The west midlands is one of the only regions to have a positive balance of trade. The Government want to build on that rebalancing by investing in HS2. To properly integrate our transport infrastructure, does my right hon. Friend not agree that the future development of Birmingham international airport should feature far more heavily in the final Davies report than it does in the interim one?

[Mr McLoughlin]

I do not know whether I have been kiboshed as far as Birmingham is concerned, but my hon. Friends on both sides of the House have made clear to me how important they consider the airport to be. There is nothing to stop the expansion of Birmingham airport. It has done a lot to increase capacity and I hope that more services can be attracted to Birmingham.

Network Rail

Lord McLoughlin Excerpts

Tuesday 17th December 2013 Written Statements

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

Today the Office for National Statistics announced that, following a review, Network Rail will be classified as a central Government body in the public sector. This is an independent statistical decision taken by the Office for National Statistics in light of the European system of national accounts 2010 (ESA10) manual from Eurostat which comes into force across the EU from 1 September 2014.

The Government welcome the ONS review and have always been committed to the transparent reporting of public liabilities. The change in Network Rail’s classification will mean that the company’s net debt, currently some £30 billion, will appear on the Government’s balance sheet. The Office for Budget Responsibility noted in its “Economic and fiscal outlook” published on 5 December, that this will likely increase public sector net debt by about 2% of GDP and public sector net borrowing by 0.2% of GDP on average. The Government remain committed to their plans to reduce the deficit and will continue to do so by taking difficult decisions to cut public spending and prioritise investment in infrastructure to deliver a stronger economy and fairer society. The new classification will be implemented from 1 September 2014 and will apply from April 2004. Until then Network Rail remains in the private sector.

I am committed to ensuring that Network Rail maintains the operational flexibility to continue to deliver a safe, punctual rail network and increased capacity for our busy railways and that it is able to attract a high calibre of staff, while still providing value for money and being accountable to Parliament.

My Department will agree appropriate accounting and governance adjustments for Network Rail to ensure it can continue to deliver world-class railway infrastructure when the company is reclassified for statistical purposes on 1 September 2014. I have accordingly agreed a memorandum of understanding with Network Rail that sets out how we will work together to develop and agree that framework. This memorandum has today been published on my Department’s website and copies have been placed in the Libraries of both Houses.

This Government remain committed to the railway. The ONS decision on the classification of Network Rail does not affect the planned improvement and investment in the railways, including Network Rail’s £38 billion settlement for the planned running of and investment in the railway in the five years from 2014. This Government’s plans for HS2 and the rail franchising programme set out in March this year are unchanged. The Office of Rail Regulation will remain the economic and safety regulator for the railway and the ONS decision will have no effect on rail fares, performance, punctuality, timetables, or safety. My Department will continue to consider how to best secure the benefits of private investment in rail infrastructure and work with Network Rail to deliver the best possible railway for the benefit of the whole industry, its passengers, and the taxpayer.

Lower Thames Crossing

Lord McLoughlin Excerpts

Thursday 12th December 2013 Written Statements

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

On 21 May 2013, Official Report, column 74WS, the Department for Transport announced the launch of a public consultation on “Options for a New Lower Thames Crossing”. The consultation document set out the case for additional road-based river crossing capacity in the lower Thames area and the relative merits of three potential locations with one variant. It invited views on where to locate a new crossing.

The three options on which we consulted were:

Option A—at the site of the existing A282 Dartford-Thurrock river crossing;

Option B—connecting the A2 with the A1089; and

Option C—connecting the M2 with the A13 and the M25 between junctions 29 and 30.

Option C—variant: additionally widening the A229 between the M2 and M20.

The consultation closed on 16 July 2013.

I am pleased to announce this consultation resulted in a very good response. We received more than 5,700 consultation responses expressing a range of opinions. These have been analysed and I am publishing a report on the consultation on the Government website. A copy of the report will also be placed in the Libraries of both Houses.

Respondents raised a number of important points, which deserve due attention. At the same time we are committed to reaching a decision on location as speedily and effectively as possible.

The Department’s review of options showed that option B has the weakest case. Consultation feedback has additionally shown that option B receives limited support and instead raises serious concerns that it would jeopardise major redevelopment of the Swanscombe peninsula, a key part of the growth strategy for the Thames gateway area. A number of stakeholders have urged me to discard this option as swiftly as possible.

I have therefore decided that there are sufficient grounds to discard option B and that Government should focus on the choice between options A and C. The consultation evidence has persuaded me that this decision is one that has far reaching consequences for local people and users of the crossing. It is therefore not a decision to be taken lightly.

To assist Government in considering the consultation feedback and weigh up the relative merits of options A and C I am obtaining further advice on:

Potential scale of further improvements which may be required on the M25 and A13;

Potential implications for air quality in terms of compliance with national and European targets;

Potential scale of mitigation relating to possible impacts on protected habitats.

I will make a further announcement regarding the consideration of options A and C as soon as possible. This need not delay the delivery of the crossing as development of the remaining options continues.

In the meantime, we remain committed to introducing free flow charging at the Dartford-Thurrock crossing by October 2014. This will help alleviate congestion on the crossing in the short term.

Christopher Irwin (Indemnification)

Lord McLoughlin Excerpts

Tuesday 3rd December 2013 Written Statements

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

The Government have decided to indemnify Mr Christopher Irwin, head of the UK delegation to the Channel Tunnel Intergovernmental Commission (IGC) for damages and legal costs incurred in the exercise of his functions in relation to liabilities incurred or proceedings brought in any jurisdiction, whether in the United Kingdom, France, or anywhere else in Europe or in the world. This will cover legal representation, costs and civil liabilities.

A departmental minute providing full detail of the indemnity and the reasons for it has been laid in the House of Commons today.

The contractual position of Christopher Irwin is complex. This is due to the dual role of the IGC, as representative of the British and French Governments and independent regulator under EU law. Chris is appointed by me but, under a memorandum of understanding (MoU) with the Office of Rail Regulation (ORR), the independent regulator, I must consult the ORR first. The head of the UK delegation can be dismissed by me, but the MoU restricts my ability to do so to a limited number of cases where he would clearly not be fit to act. Under the MoU, the head of delegation is remunerated by the ORR, but his remuneration comes from the money that the concessionaires of the tunnel (Eurotunnel) are required, under the concession, to pay towards the IGC’s expenses. Chris’s contract is with the ORR—his letter and terms of appointment characterise him not as an employee but as an individual providing services to ORR. He is remunerated on a fees for service basis.

I consider that it is only right and proper for Chris to be afforded an indemnity similar to that enjoyed by senior civil servants—SCS employees—in the course of their duties; given that Chris is an appointee of mine, even though, in order to protect his independence, the ORR “hosts” him.

The terms of the indemnity follows the precedents set for managing public money as well as the civil service management code.

The Treasury has approved the proposal in principle. If, during the period of 14 parliamentary sitting days beginning on the date on which this minute was laid before Parliament, a Member signifies an objection by giving notice of a parliamentary question or by otherwise raising the matter in Parliament, final approval to proceed with incurring the liability will be withheld pending an examination of the objection.