Northern Rail Hub

Debate between Louise Ellman and Julian Sturdy

Wednesday 18th January 2012 Westminster Hall

[Mrs Ellman]

I have seen that report. It is significant that we register such great disparities, but it is even more important that we try to do something about them, and the northern hub represents a major opportunity to do that. The Transport Committee has taken a particular interest in the northern hub, which we refer to as an important proposal in our report on transport and the economy and our report on high-speed rail.

The Committee supports high-speed rail, but we registered a number of concerns, including about the importance of ensuring that investment in necessary high-speed rail did not take place at the expense of investment in the existing, classic line. We cited the importance of investing in the northern hub and invited the Government to demonstrate their commitment to investing in the existing line by investing in both the northern hub and high-speed rail. Perhaps they will soon be asked to show their position on the matter and to demonstrate their commitment to investing in the existing line.

[Julian Sturdy]

The hon. Lady makes a powerful case for HS2, and if we are to make high-speed rail a success, we need investment in the northern hub. If we are to bring passengers up to the north more quickly, do we not also have to ensure that we invest in connectivity so that the system that high-speed rail passengers continue their journey on is not antiquated? Otherwise, the system will not work.

[Mrs Ellman]

I agree entirely with the hon. Gentleman. We want modern, new rail, not only on the new High Speed 2 line but on existing lines and connections, and investing in the northern hub as a separate project is one way to achieve that.

At the moment, Network Rail is assessing the detail of the northern hub proposals and looking at value for money. That needs to be done, but it is absolutely essential to recognise the strategic importance of this investment in rail in the north. The Government’s commitment to rail electrification in the north is much appreciated, but it is not an alternative to proceeding with the northern hub. I await with interest their final decision on the northern hub, and I ask the Minister to assure us that she recognises the strategic importance of investing in the north and to commit to the investment in the northern hub.

Cost of Motor Insurance

Debate between Louise Ellman and Julian Sturdy

Tuesday 8th November 2011 Commons Chamber

[Mrs Ellman]

I thank the hon. Gentleman for his question. The Committee did not look specifically at that point, but I fear that if there is to be equity, it will be equity upwards, rather than lead to a lowering of premiums.

High premiums have a major impact on the lives of our constituents. Motor insurance is rightly compulsory, but for many people driving a car is a necessity, perhaps for getting to work, to college or to hospitals for appointments, as well as for visiting friends and family, doing the shopping or taking children to school.

I and other Members have received a great deal of correspondence from people wanting to give examples of the problems they have experienced. I received a letter saying the following:

“My partner has just tried to insure me again on our vehicle which is not a sporty flash car, to be told that it would cost him an extra £1,370.”

A lady from Birmingham wrote:

“My car was involved in an accident where a lorry collided with my car. The driver accepted it was his responsibility…My renewal was due and my premium had increased from £700 to over £2,000.”

These stories illustrate why the Government must act.

Surprisingly, the recent increase in premiums has coincided with significant improvements in road safety, which is part of a welcome trend of falling numbers of deaths and serious injuries on the roads. Why have premiums risen so much, therefore?

There is better access to justice, with no win, no fee arrangements. Those arrangements are being changed, but we must not return to a situation in which justice is available only to the rich.

There is also cold calling, where claims management companies canvass for claims, often using personal information obtained from unknown sources. Where is the regulation of data protection that is supposed to be in place? Claims management firms deserve special scrutiny. They encourage people to claim, and to make multiple claims when they might not otherwise have done so. Premiums in the north-west are 50% higher than the national average, apparently because of the activities of these companies.

Referral fees have been in the news. They are paid to a number of players in the industry as a reward for passing on business, thereby encouraging claims and sometimes inflating bills. They are not paid to insurers alone; a number of bodies are involved, including insurance companies, solicitors, car hire firms, claims management companies, medical experts and vehicle repairers. Although the Government have started to act on referral fees, what they are doing does not encompass all those sectors of the industry, and neither does it take into account how companies might try to get around the abolition of referral fees. There are now alternative business structures, where non-lawyers can buy legal practices. How will the Government ensure that companies do not get around the ban on referral fees through taking such steps?

Fraud is a major concern, including the staging of accidents by criminal gangs. That adds £80 to the average premium.

[Julian Sturdy (York Outer) (Con)]

The hon. Lady is making some powerful arguments on issues that the Transport Committee has addressed. Does she agree that we need greater transparency in the industry if we are to drive down the costs of motor insurance?