Intercity Express and Rail Electrification Debate

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Department: Department for Transport

Intercity Express and Rail Electrification

Louise Ellman Excerpts
Tuesday 1st March 2011

(13 years, 9 months ago)

Commons Chamber
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Lord Hammond of Runnymede Portrait Mr Hammond
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My right hon. Friend the Secretary of State for Wales and I discuss such matters all the time—I always discuss with them matters that trespass into the jurisdictions of my right hon. Friends the Secretaries of State for Wales and for Scotland—but it would be inappropriate for me to give the House details of discussions that occur between Cabinet colleagues.

Louise Ellman Portrait Mrs Louise Ellman (Liverpool, Riverside) (Lab/Co-op)
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I welcome the announcement of major investment in rail, although there is considerable disappointment in relation to Swansea. Will the Secretary of State indicate what the benefits of that investment will be in terms of jobs and economic growth, and when does he expect them to materialise?

Lord Hammond of Runnymede Portrait Mr Hammond
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If the hon. Lady is talking about the wider package, I can tell her that there are obviously many components to it. Jobs will be created through the electrification process over a number of years as Network Rail gears up to deliver that programme, and others will be created at Newton Aycliffe for the IEP. Further jobs—thousands of jobs—will be created in the UK supply chain that will support that major investment which, incidentally, is not just about delivering the UK IEP, but about Hitachi’s manufacturing and development base for its involvement in European rail in future.

In addition, of course, there will be huge benefits in the south Wales area from the electrification of the valleys lines—what economists like to call agglomeration benefits, meaning the reinforcement of the economy that happens when connectivity is improved and labour markets are deepened. Those will allow people in towns up the valleys lines, some of which, frankly, are among the most deprived in Wales, more readily to access the markets and economy of Cardiff, which is a powerhouse for the area. That will bring significantly increasing prosperity and wider opportunities for people who live in the Cardiff hinterland.