Budget Resolutions and Economic Situation

Louise Ellman Excerpts

Friday 23rd March 2012 Commons Chamber

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

Investment in transport is absolutely essential for the future of our economy, which means that we need support for transport now and for future projects. I regret that no support was announced in the Budget statement for the maintenance of bus services, which are often important in getting people to work. Rising bus fares are a great burden, and in many cases essential bus services are simply being stopped. Nor was there any short-term relief from ever-rising train fares. I regret the absence of any measures in those areas, which are so vital to people today.

There were some encouraging statements about future transport investment. In the short time that I have available, I want to ask some questions about the meaning behind some of those headline statements. They are encouraging, but a lot lies behind them.

I first wish to refer to rail. I very much welcome the increased commitment to rail electrification. I listened carefully to what was said about Wales, and we would like to know exactly when rail electrification will come to Swansea, which was not very clear. I also welcome the commitment to more electrification across the north of England, and particularly the statement that part of the northern hub had now been agreed to.

Will the Government give a firm commitment to investing half a billion pounds in the northern hub, which is a major scheme to improve rail services right across the north, including places such as Liverpool, Manchester, Leeds, Sheffield and Newcastle. That £0.5 billion investment would produce a £4 billion boost to northern economies. We are still being told that the value-for-money studies are continuing, to assess whether the whole scheme can be made available. I remind the Minister that the Government are quite rightly investing £15 billion in Crossrail and £5 billion in Thameslink, yet the proposed £0.5 billion for rail right across the north is subject to scrutiny that has not yet come to a conclusion. I should like to hear a firm commitment to the northern hub today.

Major questions have been raised about the disparities in transport investment in different parts of the country. The passenger transport executive found figures showing that three times as much per head was invested in transport in London and the south-east as in the rest of the country. The Institute for Public Policy Research North, examining the implications for transport investment of the autumn statement, in which welcome new investment was announced, found that £2,700 per head was being invested in London and only £5 a head in the north-east. I accept that our capital city needs continuing major investment in transport, but given the needs of the country as a whole it cannot be right to have such wide disparities.

Will the Economic Secretary consider publishing the impact of spending decisions on transport across the country and in the different regions? All parts of the country need investment, but it is simply not right for the interests of the country overall that we continue to have an overheated south-east, while other parts are without essential transport investment.

The Budget contained announcements on road investment. More investment in roads—appropriate roads—is required. We are told that there will be a feasibility study on bringing private investment into our road system, but we need to know a great deal more about what that actually means. We are told that there will not be charges for existing roads, but would the widening of existing roads lead to charges? Is the policy not road charging through the back door, without the safeguards that were considered in the past when road charging as a national policy was under national discussion?

In previous discussions on road charging, it was always assumed—and indeed stated—that if road charges were levied, there would be a compensatory reduction in road taxation paid by the motorists, but it appears that under the Government’s new plans, that reduction in taxation will go to the private sector investors as an incentive to them, and will not accrue to the motorist. This is a major issue. It has been suggested that bringing more private sector investment into roads by leasing or selling our road system would be similar to privatisation of the water utilities—that is what the Prime Minister stated. If it is, it could well lead to a great hike in charges. However, the leasing or selling could be more akin to the Railtrack situation, when maintenance in infrastructure was severely reduced, with tragic consequences.

[Gavin Shuker]

My hon. Friend mentions parallels with the water industry. Is she aware—many hon. Members may not be—that currently one third of household bills go, in perpetuity, on debt repayments for investment in the water sector?

[Mrs Ellman]

I thank my hon. Friend for his comment—he makes an very important point and underlines the importance of looking at the policy in great detail. We are told that there will be a feasibility study, but we do not know exactly when that will take place, what it will include, or what kind of consultation there will be. Asking the private sector to own, run and lease our road system is a major step, and detailed scrutiny of exactly what it means for the future as well as the present is essential.

I am pleased that the Government have made statements on their renewed commitment to aviation. If we are to succeed as a country, it is vital that we maintain a successful hub airport. We cannot continue to lose out to our European rivals. It is essential that we build on the hub and do not allow it to decay. Investment in our regional airports is also important. They are important to local areas, but many of them are suffering economically because of the general economic situation. If the Government are interested in aviation for the future, they must look at our regional airports as well as maintaining that essential hub airport.

Hon. Members have been told in the past that there would be a Government aviation strategy that we could debate and consider. That is mentioned in the statement, but the situation is exceedingly vague. I ask the Minister please to tell us this: when will the Government publish their sustainable framework on aviation so that those very important issues can be considered and debated?

In the short time available to me today, I have raised a number of important issues that need proper consideration. I hope the Select Committee on Transport will look at those matters in detail. The whole House will want to know exactly what those headline statements mean. Investment in transport infrastructure is essential for the economic future of the country, but that means the whole country. I hope the Government are committed to doing just that.