West Coast Main Line

Marcus Jones Excerpts

Monday 29th October 2012 Commons Chamber

[Mr Marcus Jones (Nuneaton) (Con)]

Over the past eight years, passenger numbers from Nuneaton station have increased by 77% to just under 1 million. On the basis of that growth and the huge growth in railway usage that we have seen across the country, does my right hon. Friend agree that it would be complete folly at this stage to revert to a nationalised railway, as has been alluded to by some Labour Members over the past week? May I also appeal to him to consider better off-peak fast services to Nuneaton station when he deals with the re-timetabling?

[Mr McLoughlin]

I am grateful to my hon. Friend. Requests for improved services often come my way whenever I appear at the Dispatch Box. That shows, to a degree, the importance of the rail industry to all our constituents and the demand that exists whereby people will use a service if it is available, so I take his representations very seriously. As for nationalisation, the railways could have been nationalised by the previous Government—they were in power for 13 years—and they decided not to do so, for very good reason.

West Coast Main Line

Marcus Jones Excerpts

Monday 17th September 2012 Westminster Hall

[Derek Twigg]

As ever, my hon. Friend makes an important point. One key failure of the system—I hold my hands up as a former rail Minister—is in being unable to get investment into certain franchises to improve rolling stock, passenger experience, gating and so on. Some companies that have won franchises have decided not to invest, for various reasons that we do not have time to go into.

As I said, all politics is local. Runcorn, in my constituency, has benefited significantly from improvements put in place in the past 10 years or so. I am concerned that we will not build on those improvements and, because of problems with the franchise, take a step backwards. What has happened in recent years is remarkable. Virgin has achieved a good partnership with Halton borough council, which has been crucial in the reconstruction of Halton’s economy. The previous Government’s massive £8 billion investment in the west coast main line, after decades of underinvestment by other Governments, was crucial in achieving the improvements we now see, and Virgin became part of that achievement because it ran the franchise. We have seen massive improvements. From Runcorn, it now takes just under two hours to get to London, with the fastest train taking 1 hour 50 minutes.

[Mr Marcus Jones (Nuneaton) (Con)]

Some things that happened under the last Labour Government and during Virgin’s franchise were not actually that positive for people on the west coast main line. Through his Government’s actions, my constituents in Nuneaton were severely disadvantaged in 2008, when all their fast off-peak services were taken away, something that hopefully the new franchise will rectify.

[Derek Twigg]

I understand the hon. Gentleman making an important point about his constituency, but faster trains to London were part of the attractiveness of the changes that were made. Where most passengers got on was important in making those decisions, and I am sorry that that disappointed the hon. Gentleman. I was very pleased for my constituency. I have not seen the details of the new franchise, but I hope there will be no attempt by the winning bidder to reduce the number of trains that stop at Runcorn. Merseytravel has pushed strongly for trains to stop at Liverpool Parkway, but we do not want any reduction in the number of trains stopping at Runcorn because of the economic impact the excellent service has on my constituency.

There have been massive station improvements. Mick Noone, the transportation strategic director at Halton borough council, has said the line is

“extremely attractive and well used”.

He went on to say:

“The quality, frequency and reliability of the services have undoubtedly encouraged more people to use the train”.

After years of persistent lobbying by me and Halton borough council, we were able to secure investment for a £650,000 refurbishment programme in Runcorn station. Its tired old 1960s appearance has been upgraded with new cladding, improving the experience for passengers and for my constituents who work there and provide such brilliant service.

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[Albert Owen (Ynys Môn) (Lab)]

I congratulate my hon. Friend the Member for West Lancashire (Rosie Cooper) on securing this important debate. As a number of hon. Members have said in interventions, we have not had the opportunity to discuss this matter since the announcement was made. That is regrettable. I pay tribute to Labour Front Benchers, including my hon. Friend the Member for Garston and Halewood (Maria Eagle), for raising this point over the summer, and the 170,000 people who bothered to sign the petition. The discussion has been too one-sided in respect of one company, although the details are not known. I mention that because the purpose of this debate is to find out the details so that we can know for sure.

I met a number of the bidders prior to the process. I was concerned about the process and put my concerns to them, including my concern about the record of some of them. I mentioned to First, which was preparing its bid, my concerns regarding its franchise in the south of Wales. First said that it would learn the lessons, would not back-load as much in future and would look at the whole period. That is why I am raising this issue. Of course, First could not talk about the detail of the bid, but I was concerned that it had handed back the franchise on the south Wales route at great expense to the taxpayer.

[Mr Marcus Jones]

Did the hon. Gentleman raise his concerns directly with the Government when the draft invitation to tender was published, or did he wait until after that process was complete?

[Albert Owen]

Just to help the hon. Gentleman, I have been raising rail issues for many years. I am the son of a railway man. Yes, I have raised it with Conservative/Liberal Democrat and Labour Ministers.

As for the process, what was clear from my meetings with the potential bidders was that they could not speak about the detail, so we were not that concerned. Now that we have heard the outcome, we have concerns—genuine concerns—on behalf of the taxpayer and the fare payer. That is why it is important to have this debate and why I congratulate my hon. Friend the Member for West Lancashire.

The west coast line is important to my constituency. It is an historical link with north Wales, but it also linked the capital of England with the capital of Ireland. Many of the trains that went from Euston to Holyhead carried the Royal Mail—the great Irish Mail trains—but another reason why the link was so important was that it brought Members of Parliament from Ireland to this place for important votes. In those days, Members of Parliament from different parts of the country had real influence over train services—less so today—and one of the reasons for the service was to get all those Irish MPs over.

I have taken a great interest in the line for many years, and I represent a railway town that was and still is a major employer in the area. Today, after many years of investment, in particular over the past decade, we have fast and frequent trains. Now the Super Voyagers or Class 221 trains can do the run from Holyhead to Euston in three hours and 40 minutes. On top of that, there has been an increase in the number of trains to Chester, which has helped my constituents going along the north Wales coast or those going to Anglesey on other occasions. Although having to change at Chester is not always nice, it is better than standing in Euston for hours, which we had to do in the 1980s and early ’90s when trains were less frequent.

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[Mr Marcus Jones (Nuneaton) (Con)]

I am grateful for the opportunity to speak in this important debate. As a member of the Backbench Business Committee, I welcome the first of the Monday debates, which rely on the public’s response to e-petitions.

The west coast main line is vital to many of my constituents, who, I must say, are a little perplexed, to say the least, about the whole saga of the letting of the west coast main line franchise. In the debate today, it is important for our constituents to understand that we are here, as Members of this House, without the power or jurisdiction to change anything at this point. It is important to state that the only people who can change the decision, unless the will of the Government changes after the judicial review, are the judiciary. The judicial process must be followed and Members must respect that process.

That said, there are general principles that we should discuss, but as MPs it would be a grave error to delve into the minutiae of each bid, because we have not seen the information first hand, and so are second-guessing from the claims and counter-claims of the different companies involved. The issues come under two categories: first, the franchise process itself; and, secondly, how the various bids were applied to the franchise criteria. To take the franchise process first: Virgin Trains and others, particularly Opposition Members, contend that the tendering process was flawed. I have concerns and scepticism about that argument. If flaws had been identified at the outset, before the draft invitation to tender or when the Government released it, we should have seen a robust challenge from the Opposition at that point.

[Maria Eagle]

As far as I am concerned, nobody on the Opposition Benches has suggested that the tendering process as it was undertaken was unfair. We do not know the details, which is why it is important to have a debate, to ask the Minister what he can tell us.

[Mr Jones]

I thank the shadow Minister for that comment, because it illustrates the crux of the issue. There is a lot of second-guessing and a lot of assumptions are being made. The people making those assumptions do not necessarily know the full facts. As I will come on to later in my comments, it is dangerous in any such tendering process for an MP or a Government to move the goal posts once the process has begun.

[Rosie Cooper]

rose—

[Mr Jones]

I will not give way at the moment, because other Members want to get in, but I will give the hon. Lady an opportunity in a few minutes.

There are a few questions about why Virgin or any other party did not raise such a high profile campaign at the outset. Why did we receive letters and ice lollies—I am not sure whether they were connected to this or were part of the Olympics—from Virgin Group on the train platform only once the bid was lost and Virgin had come in second? Why are Labour Members only now coming up with these concerns? They are not even giving their position on the matter. To me, it is a little like someone going to a restaurant and ordering liver, knowing that they do not like liver, and sending it back once it comes to the table and is put down in front of them. In the same way, we need to be careful what we wish for here.

For the Government’s part, it is important that once they have set a franchising process, it should be the benchmark against which the bids are judged. As I said in response to the intervention from the hon. Member for Garston and Halewood (Maria Eagle), it sets a dangerous precedent if, after the bids have come in and a tender has been let, we try to shift the goal posts to get the outcome that we were looking for. Not only would that completely undermine the tendering process, but there are obviously potential legal ramifications.

The critical question is whether the process was followed properly. If Department for Transport officials have not properly applied their own criteria to the bids, then yes, we have to acknowledge the concerns of Virgin Trains, and yes, the Government have to address any subsequent issues that might arise. At this point, that decision is a matter for the courts. It is dangerous as an MP to call for the franchise to be re-let on the basis of a petition, rather than an independent judgment to ensure that the correct procedure and process has been followed.

We should wait to see what the judicial review says, and if it is accepted by the court, the Government should deal with it appropriately at that point. If not, I will fully support the Government in signing the contract, on the basis of retaining the integrity of the tendering processes that they follow. For my constituents, the winning bidder at this point, FirstGroup, notwithstanding the legal case, is on the face of it offering the taxpayer a better deal and far better services to Nuneaton, which is what my constituents are looking for.

Rail Fares

Marcus Jones Excerpts

Wednesday 5th September 2012 Commons Chamber

[Caroline Lucas]

I refer the hon. Gentleman to Deutsche Bahn, SNCF and several railways in Europe that run perfectly good public sector railways with much lower fares than ours. I am not necessarily saying that we should go back to British Rail; I am saying that we should learn from that experience. We might in future have much greater democratic control, with passengers involved in the decision making. Far more of running the railways might be delegated to regional level. We do not have to go back to something—we can go forward to something and learn from the best of what is happening in many European countries and in the rest of the world.

The proposal that “Rebuilding Rail” and others are considering is a more or less cost-free process, whereby when the franchises expire or companies fail to meet the criteria, they could be acquired on a case-by-case basis. New rolling stock could be directly procured, making the process far cheaper than the current leasing arrangements, and fair price regulation could be introduced to bring down the cost of leasing existing rolling stock from its private sector owners.

We also need to bring Network Rail’s debt back on to the Government’s balance sheet. I appreciate that the Government will blanche at the very thought, but doing that would reflect the reality of the situation and result in much lower interest payments.

According to calculations from “Rebuilding Rail”, reuniting the railways under public ownership could save more than £1 billion a year of taxpayers’ money. To put that figure in context, the money that we would have saved if rail had not been privatised could have been used to cut fares by up to 18%. The matter needs to be properly examined, and I am deeply upset that the Conservative ideological position means that the proposal is dismissed simply because it contains the words “nationalisation” or “public ownership.”

[Mr Marcus Jones (Nuneaton) (Con)]

I think I am following the hon. Lady’s logic. However, if the perfect answer for the general public is to renationalise the railway, why is there such a large petition about the west coast main line, which supports the continuation of a private company’s running that route?

[Caroline Lucas]

I imagine that that is because there was no properly public option on the ballot paper, as there was with the east coast main line, which was taken back into public ownership. Plenty of polls show massive support for bringing the railway back into public ownership. A majority of people want that. I suggest that the hon. Gentleman consider that.

In Europe, passenger rail services are much cheaper and services are better, and between 80% and 100% of train services are run by publicly owned companies. Those two facts are not unconnected. Despite what some opponents claim, there is no EU requirement for the railways to be privatised. Other European countries have accommodated EU legislation, while largely or entirely retaining public ownership of their railways, by ensuring that there is separation between the body that is responsible for passenger train operations and the subsidiary company that is responsible for capacity allocation and access charges.

The Government should know that there is a problem, since the McNulty review, commissioned by Labour but delivered to the coalition, clearly highlighted excessive costs in the UK rail industry. That report also showed that privatisation’s promise of innovation simply has not materialised. Both McNulty and the Transport Committee noted that, in fact, innovation has been actively discouraged by the disjointed and complex nature of the privatised railways.

Genuine, at-risk private investment, as opposed to private capital expenditure that is underwritten by the Government, makes an insignificant contribution to the railways, representing about 1% of investment. That is substantially less than the additional costs that arise from a privatised structure. Nor has efficiency improved in the hands of the private sector—despite often being cited as another major benefit of selling off public services. In fact, there has been an increased number of administrators and managers, as well as duplication of functions in different private companies, and staff who have to be employed to ensure that everyone talks to one another and knows what is going on. It has been estimated that the cost of those back-room staff has increased by 56% since privatisation, measured per train kilometre—money that would have been better spent keeping rail fares affordable and investing in real improvements.

Britain was once world famous for its trail-blazing and hugely successful railway, but today, privatisation is failing passengers, the economy and the environment. Unless it returns to public ownership, Britain will struggle on with a disjointed, complex and often dysfunctional railway system that regularly makes commuting a miserable experience and puts us to shame internationally.

Rail Reform

Marcus Jones Excerpts

Thursday 8th March 2012 Commons Chamber

[Justine Greening]

I cannot, but I will write to the hon. Gentleman to set that out very soon. I know exactly the project that he refers to and I know that it is in plan. I will tell him exactly when he can expect it to happen.

[Mr Marcus Jones (Nuneaton) (Con)]

Will my right hon. Friend confirm that, alongside the action that she is taking with the rail industry to reduce the cost base of running our railways, the £18 billion investment programme of upgrades and improvement, including the Nuneaton to Coventry upgrade announced last year, will go ahead?

[Justine Greening]

Yes, it will. That is one of the reasons why it is such an exciting time to be involved in the industry, because this unprecedented investment is being made. It is a huge opportunity for people working in the industry and for passengers. We will hopefully get the benefits of all those investments and people will really see the difference it can make to their commute and their travel when they get on the train.

High-speed Rail

Marcus Jones Excerpts

Tuesday 10th January 2012 Commons Chamber

[Justine Greening]

We have already announced the electrification of the trans-Pennine railway line, which is a key part of how we can start to deliver some of the northern hub agenda. I am very happy about that, and we are indeed looking at what it means for the rest of the northern hub proposal as part of the HLOS2 review process, which is happening right now.

[Mr Marcus Jones (Nuneaton) (Con)]

Fast services on the west coast main line to Nuneaton were drastically reduced under the previous Government in 2008, much to the displeasure of many of my constituents. Will my right hon. Friend explain whether HS2 will make the provision of fast services for my constituents better or worse?

[Justine Greening]

I certainly hope that it will give us the potential to make them better, and Network Rail is looking at precisely what the opportunities for the conventional rail network will be if we have capacity elsewhere via high-speed rail and High Speed 2. The problem we have at the moment is that the more constrained capacity is on the network, the more we have to prioritise where to connect to on the network to maximise passenger benefit, and that has, of course, caused pressure to reduce the network’s connectivity. One of the best things about HS2 is that it starts to open up some real opportunities on the existing network to connect people better with the railway.

McNulty Report and West Coast Rail

Marcus Jones Excerpts

Thursday 19th May 2011 Commons Chamber

[Mr Hammond]

I am sure that the hon. Gentleman will have been pleased by the announcement that we made recently about additional rolling stock for the commuter services into Leeds. Sir Roy did not specifically address the question of any form of mutual structure. Network Rail is of course an independent company, and as Secretary of State I do not have any power to direct it. There are issues of the governance of Network Rail that need to be addressed, and I accept that, but I suggest that the urgent need is to look at its operational structure. The issues of governance and the rather theoretical question of ownership can be looked at on a longer time horizon. Right now we need to drive out cost.

[Mr Marcus Jones (Nuneaton) (Con)]

Following the work of the last Government, there are no fast off-peak services on the west coast main line to or from Nuneaton station. Many of the fast off-peak trains thunder through Nuneaton station half empty while there is a strong demand for off-peak services to and from that station. Will the west coast main line specification make it possible for franchisees to look, for example, at changing services so perhaps a fast train could stop at Nuneaton station every hour, trading off a small increase in end-to-end journey times for the possibility of maximising revenue on that service?

[Mr Philip Hammond]

I thought, at the beginning of my hon. Friend’s question, that perhaps he had missed what I said about less departmental micro-management, but I saw from how he ended that he had not missed it all. We will not mandate the new franchisee to do what he describes, but we will make it possible by relaxing the rigid timetabling and specification imposed in the past. We will also give operators an incentive to do so. By moving away from the cap and collar revenue-sharing regime, we will make operators much more responsive to the demands of passengers waiting on a platform and ready to pay good money to get on a train. In the past, that has not always been the case, because 80% of what passengers handed over went directly to the Government.

Ultra Low-Carbon Emission Vehicles

Marcus Jones Excerpts

Tuesday 10th May 2011 Westminster Hall

[Andrew Selous (South West Bedfordshire) (Con)]

I am delighted to serve under your chairmanship this morning, Mrs Riordan, and I am particularly grateful to Mr Speaker for granting me this debate on the Government’s policy on ultra low-carbon emission vehicles.

There are four main reasons why the issue is so important and matters for the future of this country. The first reason is about tackling climate change. We know that the Government are committed in law to a 34% reduction in emissions by 2020 and an 80% cut by 2050. Clearly, ultra low-carbon emission vehicles, including electric cars, will be part of the solution to helping to reduce emissions, but we also need to have low-carbon electricity. It is no good just reducing the tailpipe emissions if the electricity that powers ultra low-carbon vehicles is fossil fuel and dirty. That is a given. I do not know whether Professor David MacKay is still advising the Government, but he has made that point very powerfully in his book, “Sustainable Energy—Without the Hot Air,” and it is important that we mention it when introducing the debate. As I say, doing something about climate change is the first reason the issue is important, as ultra low-carbon emission vehicles are clearly part of that.

The second reason is that the whole sector has massive potential to create growth, wealth, jobs and employment for this country. Just under 2.5 million of our fellow citizens are looking for work, and ultra low-carbon emission vehicles are part of a massive industry of the future. Shai Agassi of Better Place has spoken of a $2 trillion-a-year industry. If the United Kingdom can increase its percentage share of that even by a few percentage points, many more jobs across the country will be created for all our constituents. Low-carbon growth and the jobs that come from it are absolutely vital.

The third reason why the issue is important is that ultra low-carbon emission vehicles are a crucial part of the United Kingdom’s response to a world with less secure energy supplies. We have only to look around the middle east at the moment to see that that is very much the case. The fourth reason the matter is vital, which will probably speak most strongly to our constituents, is that it will allow us to do something about the absolutely exorbitant cost of going to a petrol station and putting petrol or diesel in a car. Our constituents—and, indeed, we—are all paying cripplingly high prices to drive around. If we can sort out the generating issues, ultra low-carbon emission vehicles provide the potential for much cheaper motoring. If any of us were looking for a slogan on which to be elected at the next election, “Cheaper motoring” must be high up the list and would resonate strongly with our constituents. I have given four powerful reasons why the issue matters incredibly. Two reasons I would particularly pick out are the wealth and jobs we need to create, and the cost of motoring to our constituents.

To give credit where credit is due, the Government have been active in this area. The Office for Low Emission Vehicles was set up under the previous Government and is a collaborative effort between the Department for Transport, which is the Minister’s Department, the Department for Business, Innovation and Skills and the Department of Energy and Climate Change. It has a combined budget of more than £400 million. There is also the Technology Strategy Board, which is a non-departmental public body sponsored by the Department for Business, Innovation and Skills, and the plugged-in places grant, which is designed to provide the necessary infrastructure. I will talk about that grant in a moment. In addition, the industry’s own automotive innovation and growth team led to the creation of the Automotive Council UK, which is a joint industry and BIS body.

There clearly has been action and there is cross-Government co-ordination, as there should be because one Department on its own cannot make this happen. That is excellent. I am glad that the people who need to be talking to each other in Government are doing so. My central question to the Minister, who I suppose is answering on behalf of all the Departments involved, is: are we being ambitious enough for the United Kingdom? I very much want the United Kingdom to be a success story at the heart of this massive and soon to be hugely growing global industry.

Let us consider where we are at the moment. The Department for Transport’s figures show that there are only 57,000 vehicles in vehicle excise duty band A, which is the lowest emission category. That figure is, in fact, double the number of vehicles that were in the category in 2009, so the industry is clearly growing fast. However, I remind hon. Members present this morning and those who will read the transcript of the debate that there are 28.4 million cars in the United Kingdom and that 57,000 is therefore a fairly small number.

The Government’s Committee on Climate Change has recommended that we should aim to have 1.7 million electric vehicles by 2020. Will the Minister say if that is what the Government are committed to achieving and how the numbers will stack up in increasing the 57,000, which we have in 2011, to the 1.7 million, which the committee says that it wants in 2020? There will need to be very sharp increases over the coming nine years to get that far. The figure of 1.7 million cars is just under 6% of the 28.4 million cars in the United Kingdom at the moment. In the excellent Parliamentary Office of Science and Technology note attached to the debate pack, I was interested to read that Japan has set a target of 20% of next-generation cars by 2020—the same date.

[Mr Marcus Jones (Nuneaton) (Con)]

I congratulate my hon. Friend on securing the debate; he is making a strong and compelling case. The benefits that low-carbon vehicles can have in reducing CO₂ and helping the environment are undoubted, but does he agree that the research and development and manufacture of such vehicles in this country is a real chance for us not just to broaden our manufacturing base once more, but to rebalance the UK economy?

[Andrew Selous]

My hon. Friend is absolutely right. We are already strong in a number of the areas he mentioned in his question. We start from a good base, but he is absolutely right that the potential is massive. My prime purpose in initiating the debate is to allow us to play our role as parliamentarians in holding the Government to account and to ensure that we do not lose out on the potential for us to benefit fully from what he is talking about.

--- Later in debate ---

[Andrew Selous]

My hon. Friend is absolutely right. If he will bear with me, I intend to touch on exactly the issue of skills that he has, properly, raised. He is not the only one raising that issue. The Institution of Mechanical Engineers and others are very concerned that we are behind where we should be in the number of qualified technicians, the people who understand the new technology and the training of apprentices in this important area. The issue goes back even further than that to the number of physics teachers that we need in our schools; the number we have is far too low. It will be difficult for the Minister when he responds to the debate, because that issue touches on such a wide area of Government policy, but my hon. Friend is absolutely right.

I was making the point that, were the United Kingdom to be as ambitious as Japan—I do not see any reason why we should not be, as the industrial revolution took place in this country, we were the workshop of the world and I believe we can be again—that would lead to a figure of 5.7 million ultra low-carbon emission vehicles on our roads by 2020, rather than the 1.7 million that the Government are aiming for. My question for the Minister, therefore, is: why are we being less ambitious than Japan?

It is true that the United Kingdom has had some notable successes; for example, Sunderland’s anticipated production of 60,000 electric vehicles a year, starting in 2013. I would note again, however, that those 60,000 vehicles a year are equivalent to some 2% of the 3 million internal combustion engines that the United Kingdom currently makes every year. That is not to say that we cannot make greater progress with the efficiency of the internal combustion engine—I will say a bit about that towards the end of my remarks—but I think that colleagues will appreciate the scale of the challenge that we face to even get to the Committee on Climate Change’s figure of 1.7 million electric vehicles on our roads by 2020.

When we look across the Atlantic ocean, we see that the United States is investing some $2.4 billion to support the next generation of electric vehicles. We know that in China there is massive investment in new battery technology—I am thinking of companies such as BYD, which stands for “Build Your Dreams”. Warren Buffett already has a 10% stake—normally a sure-fire sign of a company that will do well. That is the competition that the United Kingdom is looking at around the world.

[Mr Marcus Jones]

Does my hon. Friend agree that Ministers from the Department for Transport need to make substantial representations to the Department for Business, Innovation and Skills, regarding where the regional growth fund is spent, in order to try to support our low-carbon industry, particularly in the automotive sector?

[Andrew Selous]

My hon. Friend is absolutely right. The automotive sector is very important to the United Kingdom not just for the cars we produce, but for the number of engines, the number of smaller engineering companies, the suppliers, and the technology and engineering base that supports that. It is vital to the country’s economic future. I indicated earlier that I am reassured that those lines of communication across Government are there, but we need to see delivery from those conversations, as he has rightly pointed out.

I will continue looking at what else is happening around the world a bit longer, because it is important to put what the United Kingdom does in context. As far as I can see, Israel plans to be the most ambitious of all. It intends to rid its entire road transport sector of dependence on oil by 2020. That is massively ambitious if one thinks about where Israel is in the world and its geopolitical relations with some of its neighbours. I think that we can all think of particular reasons why Israel is going down that route, but none the less it is deeply impressive.

Israel is choosing a different model, I think it is fair to say, from that of the United Kingdom. It is looking to sign up to the Better Place concept, which will largely involve changing the engines in cars—engines will be swapped over. The depleted battery is taken out of a car and in under a minute, I understand, a new, fully charged battery supply is put in and one can carry on driving. In less time, therefore, than it currently takes to fill up with petrol at the pump, the car can be on the road again—a fully-charged vehicle that will travel another 100 miles.

It is worth mentioning the context of the debate, because of Israel’s scale and ambition. The Minister will probably have good and valid reasons, which I would accept, to say that it is probably not right for the United Kingdom to go down that particular route. For various infrastructure reasons, it is probably right that we do not. If we are not going down that route, however, how do we in the United Kingdom achieve that level of transformational change? How do the Government envisage United Kingdom companies, some of which were mentioned by my hon. Friends, taking advantage of the £1.3 billion loan scheme for the development of low-carbon technologies that is available from Europe? We need to ensure that we receive our fair share of that money.

When new technology comes to the fore, initially it is clearly expensive and there is low take-up. I think that if we are honest, at the moment electric cars are—perhaps I am slightly parodying—for rich idealists. Frankly, the economics do not quite stack up at the moment. I illustrate that by looking at the on-the-road cost of the new Nissan Leaf, which will be produced in Sunderland. That is an excellent vehicle. I was privileged to see one close to Parliament recently. It is a five-door hatchback—a very nice-looking car. It will be made in Britain, which is fantastic. Its on-the-road price, however, is £30,990. The Government’s £5,000 plug-in car grant, which is an excellent initiative that I commend, brings the price down to £25,990 but, for me, that is a very expensive car. I do not know what sort of cars my hon. Friends drive, but to me that would be an awful lot of money. I expect that for many of my constituents that would be much more than they would spend on a car. Frankly, I do not think that they would get the payback from the cheaper costs of motoring after that level of investment.

There is, however, a tipping point that comes with the introduction of new technology. When there are the advantages of economies of scale—mass production and so on—prices come down as new technology comes in. More people buy these things, so they are cheaper to produce and so on. Shai Agassi, in a speech that I read recently, anticipates a tipping point around 2015 when the economics start to stack up. If that is the case, things could change very quickly, which is why I raise the issues of scale and whether the United Kingdom will be able to meet the level of demand that I anticipate. If, for all of our constituents, an ultra low-carbon emission vehicle is cheaper than a conventional fossil fuel internal combustion engine, we will all want those vehicles straight away, because we will be fed up with paying the higher costs of motoring. Those issues of scale, and whether the United Kingdom is able to provide that amount of cars and make money from those huge levels of sales, will be a significant issue.

What is the Government’s view on the economics of investing in their own fleets across various Departments? Examples might include NHS delivery lorries or Royal Mail vans that go back to the same place every night, where they could be recharged; they might have a set route or series of routes and are excellent cases for conversion into electric vehicles. What progress are the Government making in ensuring that their commercial fleets in particular consist of ultra low-carbon vehicles—whether the electric or the plug-in variety?

[Mr Marcus Jones]

I thank my hon. Friend for giving way again. He makes an important point about Departments, local authorities and so on investing in electric vehicles. Does he agree that it is extremely important that, where practicable, we procure such vehicles from British manufacturers?

[Andrew Selous]

I very much agree. I, too, am passionate about home-made British production. We ought to buy British as often as we can. We are all subject to the so-called OJEU rules—named after the Official Journal of the European Union—under which public bodies must go through strict and unbiased procurement procedures. Sometimes, therefore, we have our police driving around in Volvos or other foreign-made cars. When I go to France, Germany or Italy, however, I hardly ever see French, German or Italian police officers in anything other than a car made in their home country—likewise for fire-fighting equipment and so on.

I postulate to the Minister that this country might be a little too rigorous in applying those OJEU rules. We have a fine automotive industry that makes excellent vehicles and, frankly, the police will catch no more criminals by driving around in Volvos and BMWs rather than in fine, British-made cars.

We digress; I will hastily return to the point, before you bring me back to it, Mrs Riordan. However, I am grateful for the intervention of my hon. Friend the Member for Nuneaton.

The Department for Transport asked whether 2011 would be the year in which the electric car takes off. There is certainly increasing interest, which is tremendous, and I commend the Government for the excellent £5,000 subsidy. My view of the economics is that we are not quite at the right point yet, but we will be very soon. Lewis Booth, the chief financial officer of Ford, has asked for how long Governments will be subsidising electric vehicles. If the Minister can shed any light on that issue, that would be helpful. In this early phase, private industry needs certainty for the future, particularly in planning.

Philippe Varin, the chief executive of Peugeot, has said that the European Union’s research and development support for electric vehicles is too cumbersome and complicated, which is a concern. If we are to compete against Japan, China and America, we in the European Union and this country need to get our act together in research and development funding.

I was delighted to read that the Minister for Business, Innovation and Skills, my hon. Friend the Member for Hertford and Stortford (Mr Prisk), said in a departmental press release that the UK was Europe’s leading producer of ultra low-carbon vehicles. That made fantastic reading. I have already spoken of the production due to start shortly, or in early 2013, at the Sunderland plant. I hope we can maintain that position.

I am conscious that France, with Peugeot and Renault, is also ambitious in the area of ultra low-carbon vehicle production. The country has a plentiful supply of low-cost nuclear electricity, and it views itself as having a chance to challenge the dominance of the Germans in the European automotive industry. I repeat that everyone here is ambitious for Britain; we were the workshop of the world, and the industrial revolution took place here. I want us to be right at the front and centre, not running behind any other European country in this massive industry of the future.

I move on to the whole issue of charging points. It is all very well having an ultra low-carbon, electric vehicle—whether a hybrid or a pure electric one such as the Nissan Leaf—but if there is nowhere to plug it in when on a longish journey, the problem is that it will grind to a halt.

Again, the Government are active on that issue, and I commend them for that. We recently had the announcement of a £20 million plugged-in places grant to provide more than 4,000 charging points in the midlands, Greater Manchester, the east of England, Scotland and Northern Ireland, building on an earlier scheme in London and Milton Keynes. Yesterday, I checked with my own local authority and found that my constituency of South West Bedfordshire does not include a single charging point. That will change, however, because we are in the east of England and will receive some of the charging points from the plugged-in places grant. Colleagues from areas that I have not mentioned might want to ask the Minister what the plans are for those areas.

Currently, London has 250 charging posts. Transport for London is aiming for 25,000 charging posts by 2015—a level of transformational change that might need to go further, but is a significant increase. Some 90% of the 25,000 posts are intended to be in workplace car parks and 250 will be fast-charge charging points, which are important for longer journeys, when someone does not want to have to stop for eight or six hours to recharge the battery fully. We need to get the mix of charging points right for the future, so that this technology takes off. In Newcastle, Sunderland and Middlesbrough, near the Sunderland car plant to which I referred, 1,300 charging points are being installed.

Smart-meter, low-cost charging can also greatly reduce energy costs. If cars can be charged when there is much less demand on the national grid, that is much cheaper. That reduction in the energy cost can be important, and it is where smart meters come in. I am interested in whether the Minister will be able to enlighten us further on that aspect of Government policy.

I am concerned about the lack of standardisation of charging points in the European Union. Indeed, why can we not have standard charging points around the whole world? In the past, technologies have battled things out. With the video or the DVD, a common format for one worldwide product was arrived at eventually. That should be the case for charging points, in Europe at least. Many British people will want to drive their electric cars to France or elsewhere in Europe for summer holidays, skiing or whatever, and they need to be able to charge while they are there. The European Union could do something useful and practical for our constituents. What representations is the United Kingdom making to ensure standardised charging throughout Europe?

Earlier, my hon. Friend the Member for Stroud (Neil Carmichael) rightly mentioned training the work force. None of what I have been discussing will happen unless we have the skilled technicians in this country; unless we get it right, we will lose out to other countries that have invested more and have an appropriately trained work force. The Institution of Mechanical Engineers is worried about the lack of apprentices with the skills to work on electric vehicles, particularly in smaller businesses that may not be able to afford to train apprentices. How will that be rectified? It said that about 10,000 additional apprentices are needed in this area of electronic manufacturing to take advantage of and to satisfy the demand that is surely coming.

I am interested in the Government’s attitude to hydrogen-powered vehicles. I read carefully the note from the Parliamentary Office of Science and Technology, which states of hydrogen fuel cells:

“This is a low-carbon form of transport if the hydrogen is generated using electricity from low-carbon sources.”

I made that point at the start of the debate, and I want to check whether that is the Government’s view. Professor David MacKay, who was a Government adviser—I should be grateful if the Minister told us whether he is still advising them—and who is an eminent professor of physics at Cambridge university, wrote “Sustainable Energy—Without the Hot Air”, to which I referred. His take on hydrogen is that hydrogen vehicles make our energy problem worse rather than better. I do not know whether he is right, but I would be interested to know the Government’s view. I know that one large UK motor manufacturer, which I contacted before the debate, was keen to obtain clarity on the Government’s view of the future of hydrogen-powered vehicles.

I have driven a hydrogen-powered vehicle round the Cranfield test centre in Bedfordshire. It drove extremely well, as did the Vauxhall Ampera, which I have also driven and which will be on sale in the United Kingdom from next year. I hope that it will be made in Ellesmere Port. I wish that it was being made in my constituency at Luton in Bedfordshire, but it would be fantastic if it was made in the United Kingdom. That, too, drives extremely well, and all the evidence is that when people get into an electric vehicle and discover that it has a nice feel and good acceleration, and is not sluggish, they are enthusiastic and keen to adopt the new technology. We just have to get over some of the financial issues to which I alluded at the start of the debate.

I should like to know the Government’s view on the use of biofuels for vehicles. There is concern about the sustainability of biofuels and the fact that we may be inappropriately using land for biofuels when it should be used to produce food. What is the Government’s view on that? Likewise, where does liquid petroleum gas fit into the Government’s view of the new technology that we have been talking about?

We must pause to consider the improvements that can be made to internal combustion engines. We have 28.4 million cars on our roads, and Britain makes around 3 million car engines every year. They are becoming more efficient and lighter, and the technology is improving. I noted from the Volkswagen website that the Blue Motion Polo—unfortunately, it is not made in this country—emits 91 grams of carbon dioxide per kilometre, compared with 89 grams per kilometre for the Toyota Prius, which I guess may occasionally ferry the Minister around; the Prius comes in at just under, but it is very close. An expertly engineered internal combustion engine produces only 2 grams of carbon dioxide per kilometre more than a hybrid vehicle. We must differentiate between different types of internal combustion engine, because new technology is advancing swiftly.

[Mr Marcus Jones]

My hon. Friend talks about research and development, and innovative design of combustion engines. Many of my constituents work for Jaguar Land Rover, which is near my constituency. It is doing a fantastic job in changing how it produces its engines and how its vehicles are constructed—to be lighter and more fuel efficient. Does my hon. Friend agree that policy across Government should be to encourage through the taxation system not just the production of vehicles that cost less to run, but their ownership?

[Andrew Selous]

I thank my hon. Friend for his further intervention. I am glad that he mentioned Jaguar Land Rover, which has not been mentioned so far in the debate. It is doing excellent work on producing an electric hybrid Range Rover, which is fantastic, and it is co-operating fully with the Government on some of the bodies that I mentioned earlier. My vision is that all British-based manufacturers will be at the front and centre of the new technology and will supply the demand that will come down the track surprisingly and frighteningly fast in a few years’ time, when we reach the tipping point at which it becomes more economic to drive such vehicles rather than pay the exorbitant and cripplingly high prices that we have to put up with at petrol stations at the moment.

The United Kingdom has a history of inventing, but then not commercially exploiting, new technologies. I do not want us to repeat mistakes of the past. If we can seize the opportunities that I have outlined, we can protect our environment, provide jobs, increase our energy security and give our constituents a low-cost motoring future. I believe that they would thank us for that.

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

It is a pleasure to see you in the chair, Mrs Riordan. I congratulate the hon. Member for South West Bedfordshire (Andrew Selous) on securing this debate, and concur with much of what he said. Clearly, he speaks with a lot of knowledge of the issue. It is a pleasure to speak on the subject; it makes a change from buses, trains and trams, which is the policy area on which I lead for the Opposition. My hon. Friend the Member for Barrow and Furness (John Woodcock), who leads on the issue, is serving on the armed forces parliamentary scheme today, so I suppose that I have drawn the short straw in speaking for the Opposition in this debate.

The hon. Member for South West Bedfordshire referred to the scheme in Israel, which, as a matter of interest, I had the opportunity to see. The ambition is impressive, but like him, I am not sure that it could be exactly transposed to the United Kingdom. However, it is certainly worth looking at, and the operation of the scheme is interesting. Knowing what works well and what does not may be of some benefit to the Department.

This debate is incredibly timely, coming as it does after two reports on the Government’s commitment to making change on the scale needed to tackle the threat of climate change and the role that a shift from dependence on oil to low-carbon alternatives in motor vehicles could play in meeting that challenge. Climate change is a threat that almost everyone now recognises we must treat seriously.

It was a surprise to read in the media that three Departments, including the Department for Transport, have raised objections to the new carbon budget proposed by the Committee on Climate Change. A leaked letter from the Business Secretary stated that accepting the carbon budget would endanger the competitiveness of British industry—that hardly says much for the Transport Secretary’s green credentials. As has been mentioned, rising fuel prices have led to a growing recognition of the need for change, not only among environmental campaigners or the political elite, but across the country. We know how the volatility of oil supplies impacts on the price at the petrol pump, causing misery for drivers and contributing to the costs facing families who are already feeling a squeeze on their incomes. The decision to increase VAT on petrol has added to the burden facing motorists, and the hon. Member for South West Bedfordshire mentioned those increasing costs in his contribution.

The goal of cheaper, greener motoring should unite everyone, as I believe it does. The public need the possibility of cheap, reliable transport, and the Government need efficient and clean transport networks that rely on secure energy supplies. Businesses must look to remain profitable and competitive at a time when the economy is under strain and environmental concerns are ever more pressing. Transport—primarily road transport—is a major contributor to greenhouse gas emissions, and the hon. Gentleman spoke about the need to use clean energy because as much as one fifth of all emissions come from road transport.

We can take two major steps to tackle the problem. First, we can make the alternatives to travelling by car more attractive. The significant investment in our rail network over the past decade led to a rise of over 43% in rail use during that period. The possibility of faster journey times on new high-speed lines, and the improvement of existing routes through electrification and more advanced trains, will continue to help achieve that shift from road to rail. The risk, however, is that such progress could be set back by the Government’s decision to hike up rail fares by 3% above the retail prices index of inflation for the next three years, meaning that fares will rise by over 30% on many vital commuter routes. In opposition, the then shadow Transport Secretary, the right hon. Member for Chipping Barnet (Mrs Villiers), warned that fare rises that were lower than those now proposed would

“price people off the railways”—[Official Report, 17 July 2007; Vol. 463, c. 149.]

I fear that her prediction will now become a reality, thanks to the decisions that she has taken since the election. Similarly, the decision to cut local government transport funds so much, so quickly, is having a devastating impact on bus services, inevitably reversing the progress that has been made in getting people out of their cars and on to public transport.

Secondly, we can do more to promote alternatives to travelling, and I welcome the Minister’s championing of initiatives ranging from the use of new technologies such as video conferencing to the promotion of working from home or remotely. Such initiatives, however, will amount to little unless there is proper financial support from the Government to back up the Minister’s enthusiasm. In reality, the car is for many the only realistic way to travel, particularly in rural areas. My constituency is in an urban area of Greater Manchester and is far from rural. Most of my constituents, however, do not travel by public transport; they travel by car, which for them is the only realistic mode of travel.

When in government, we recognised that a step change was needed if we were to move away from our dependence on oil and embrace and incentivise ultra low-carbon alternatives such as electric vehicles. Of the 20% of emissions that originate from our roads, 16% comes from cars. If it were more affordable to use electric vehicles, that would have a significant impact on emissions. Such initiatives must, of course, go hand in hand with a credible strategy to increase the amount of energy generated from renewable sources—a point made by the hon. Member for South West Bedfordshire—so that when there is increased use of electricity as a result of the roll-out of electric cars, that electricity is from green sources.

I am sure the Minister shares my concern about the report published in the past few days by Jonathon Porritt, the former chairman of the Sustainable Development Commission. His damning report marks the anniversary of the Prime Minister’s commitment to lead the UK’s “greenest Government ever”, and states that

“the likelihood of the Coalition Government living up to its “Greenest Government Ever” pledge is vanishingly remote.”

The report finds that more than three quarters of the Government’s commitments have shown little or no progress, and judges 29 of those commitments to be “moribund”, with a further 29 seeing “limited progress.” The decision to prevent the green investment bank from borrowing funds until at least 2015, and the watering down of feed-in tariff rates, are two examples of the Government’s backtracking on low-carbon initiatives. In his report, Mr Porritt states:

“The fact that David Cameron has no personal vision for the Green Economy provides all the permission that is required for piecemeal decisions across the rest of Whitehall working against any notion of becoming the Greenest Government Ever.”

The report concludes that it is

“depressing to see just how rapidly things have gone backwards since May 2010.”

Significant hurdles must be overcome to achieve the mass roll-out of electric vehicles that is needed to make a difference. We need the development of a recharging infrastructure that offers the assurance wanted by potential buyers—namely that they will be able to recharge their cars wherever they are in the country. That point was made eloquently by the hon. Member for South West Bedfordshire. We must also bring down the retail costs of electric cars. Although we can argue that they are cheaper to run and offer the potential for huge savings across the lifetime of the car, that is little use for someone who simply cannot afford the up-front cost. At the danger of breaking the consensus that has developed during the debate, the zeal with which the hon. Gentleman made his contribution put him in danger of sounding a bit like an over-enthusiastic car salesman—he certainly had me sold on a number of vehicles that he described. I am not sure whether that is a better job than being a Member of Parliament in the general hierarchy of things, but his knowledge has certainly benefited the debate.

We must work in partnership with industry to support the up-front research and development costs of new technologies—the hon. Gentleman and other hon. Members made a compelling case for investment in skills. It is a high-tech sector and important to the future of the manufacturing industry in this country, and it will undoubtedly play a major part in rebalancing the British economy. I represent a constituency that is still heavily dependent—perhaps disproportionately so—on manufacturing industry, and the desire to see investment in those new technologies transcends political divides.

I am proud of the steps that we took when in government to address some of the barriers to the mass take-up of electric vehicles. The £2.3 billion of assistance provided by the Labour Government to the automobile industry during the recession was tailored to help British industry become a world leader in the manufacture of low-carbon vehicles, and aimed to promote research and development of that technology. It also helped companies such as Jaguar Land Rover to access the European Investment Bank’s clean transport facility.

Labour made a commitment to make electric vehicles more easily available for consumers, and the then Transport Secretary, Lord Adonis, worked on trial electric vehicles. An investment of £250 million was made to make electric hybrid vehicles more affordable for consumers, and funding was provided for the largest trial of electric vehicles in the world. That scheme was launched in July 2009, and 340 vehicles took part. It is hugely disappointing that the Government do not recognise the importance of supporting British manufacturing at a time when investment is necessary to protect British jobs and ensure that we set the pace in the development of green technologies.

[Mr Marcus Jones]

The shadow Minister is making a case for the support given by the Labour Government to the automotive industry. I am quite shocked by his comments, because many of my constituents who work for Jaguar Land Rover were very concerned in 2009 at the lack of support that the Labour Government gave Jaguar Land Rover in its time of need. A long, long delay nearly saw many departments of Jaguar Land Rover close facilities in the UK. I am glad to say, and I hope that the hon. Gentleman will acknowledge this, that the regional growth fund has supported substantial investment in Jaguar Land Rover, which will create more than 6,000 jobs in the west midlands.

[Andrew Gwynne]

That is not quite how it happened. What the hon. Gentleman says about the regional growth fund is certainly welcome, if it is the case, for Jaguar Land Rover. However, I have to say that it is a pittance compared with the funding that was available through the regional development agencies. If that company is benefiting from the regional growth fund, that is good news for it, but I know of many companies that were to receive funding through the regional development agencies that are not so fortunate.

[Mr Jones]

The shadow Minister mentions the regional development agencies. In the west midlands, private sector employment fell while the regional development agency, Advantage West Midlands, was in operation, despite it having spent far more money than the regional growth fund, so I suggest to him that perhaps he should look for outputs rather than inputs, and at what we can achieve for our money.

[Andrew Gwynne]

I am glad that the hon. Gentleman acknowledges that the budgets of the regional development agencies were substantially greater than that of the regional growth fund, notwithstanding the points that he makes about employment growth. With regard to the funding that was made available previously, it is hugely disappointing that the present Government do not recognise the importance of supporting manufacturing. It is crucial to ensure that we are setting the pace in the development of green technologies.

I appreciate that the Minister has at least sought to take forward the work that Labour started when it was in office in developing an infrastructure for recharging. The Department for Transport claims that 9,000 electric vehicle charging points will have been built by 2013, yet research by the BBC published last week found that only 704 are currently available. It is estimated that 8,600 electric vehicles will have been sold by the end of this year, which will require 4,700 charging points to be completed before 2012.

It is a real worry that greater progress is not being made, and there are real doubts that the Government are treating the issue with the urgency needed to ensure that even their own claims will be achieved. There are also concerns about the progress being made in supporting the sale of new electric cars. The Minister has said in a parliamentary answer that just 534 cars were registered to receive the plug-in car grant in the first third of this year. The real concern, however, is that the funding for that initiative is being ended by the Government next March. As the Minister will know, Labour committed £230 million to the scheme, yet that has been reduced to just £43 million, turning the grants into a one-off scheme when what is needed is long-term, sustained support for this emerging industry.

I will therefore ask the Minister for some assurances. Can he reassure the industry and those for whom the cost of an electric car is simply out of reach that funding will be made available to continue the subsidy beyond the current financial year? Given that the comprehensive spending review was supposed to be a three-year settlement, why has he set this budget only for the current year? Are we providing enough support to the automobile industry to research and develop new low-carbon and ultra low-carbon vehicles? What more can be done to ensure that the UK is in a good position to become a market leader in this field?

Is the automobile industry putting sufficient investment into improving the efficiency of conventional petrol and diesel vehicles? Does the Minister believe that biofuels should play as prominent a role as they have been given in the past in making conventional vehicles greener? What progress are we making towards setting a new EU-wide target of 100 grams of carbon emissions per kilometre from new cars?

Finally, I would like to ask the Minister about the Government’s carbon plan. Can he update the House on the commitment to

“Consolidate existing support mechanisms for low and ultra-low emission vehicle research and development”,

which had a deadline of April 2011? Can he confirm that the commitment to developing a

“nationwide strategy to promote the installation of electric vehicle infrastructure, including a decision on whether to use an energy Regulated Asset Base and/or changes to planning/building regulations”

will be delivered on time—by the end of June 2011? What progress has been made on the commitment to review the

“strategy to support transition from early ultra-low emission vehicle market to mass market”,

which the Government have said is under way?

More environmentally friendly forms of transport, including electric cars, could play a larger role in the coming years in this country. I certainly look forward to what the Government will say about meeting that challenge.

--- Later in debate ---

[Norman Baker]

I entirely agree, and I hope that the EU comes up with a solution that does not reflect national interest, but European interest, and makes sense for manufacturers and consumers by keeping costs down. That would be an entirely sensible outcome for many EU discussions. I assure my hon. Friend that we are using our influence, as far as we have any, to push for exactly that outcome.

[Mr Marcus Jones]

Promoting the standardisation of such charging equipment across Europe is obviously laudable, but if other EU member states are promoting their national interests while doing so, surely we should also give some consideration to promoting our national interest and the interests of our manufacturers in those negotiations. Does the Minister agree?

[Norman Baker]

I agree that we do not want to leave ourselves in a position where, to be blunt, we are outflanked. We must try to achieve a consensual arrangement for a single recharging solution that everyone can embrace. That is clearly the desired outcome, and it will ultimately be to the benefit of all countries in the European Union and more widely. Indeed, as we heard earlier, the best solution will be an international one, as it will keep manufacturing costs down and therefore the cost to the consumer down, too. We are seized of the need to make progress, but the House will appreciate that it is not entirely within our control.

The matter of apprentices was raised, especially the fact that we need a sufficient number with the skill to work on electric vehicles. I am happy to reassure the House that the Department for Business, Innovation and Skills, the Department of Energy and Climate Change and the Department for Environment, Food and Rural Affairs are working together to identify the necessary skills and to consider how the demand-led further education system will deliver them. We are talking to the sector skills councils and the Commission for Employment and Skills about ensuring that the demand for green skills is shared with further education colleges and other providers. We plan to maintain a strong cross-Government focus on the STEM subjects of science, technology, engineering and maths.

Oral Answers to Questions

Marcus Jones Excerpts

Thursday 5th May 2011 Commons Chamber

[Mrs Villiers]

My hon. Friend is right to give credit to Heathrow for real improvements over recent years. Although terminal 5 started pretty badly, it is now a high-quality facility, and the airport will be investing in a major redevelopment of other terminals, hopefully to bring them up to the same standards. But more needs to be done, which is why we will modernise the airport regulatory framework to put passengers at the heart of the system, to give the Civil Aviation Authority the power to intervene where airports fail their passengers, and to incentivise the sort of investment in improvement, to baggage handling and terminals, for example, that his constituents clearly want. We are also introducing a new consumer panel at the CAA to improve passengers’ ability to influence the regulation of the airport.

[Mr Marcus Jones (Nuneaton) (Con)]

8. What steps he is taking to tackle uninsured driving.

[The Parliamentary Under-Secretary of State for Transport (Mike Penning)]

The Government have already introduced the continuous insurance enforcement scheme that will come into force in late June, which says simply that everyone who intends to drive a vehicle on the road must be insured and that a vehicle must have a valid statutory off-road notification if there is no intent to drive.

[Mr Jones]

Uninsured drivers are the scourge of our roads, adding to the insurance premium of the law-abiding motorist. With a fixed-penalty sanction against uninsured drivers of £200 and an average motor insurance policy premium of £892, rising to £2,431 for young drivers, is it not time to consider increasing the fixed-penalty fine to ensure that it is proportionate to the cost of motor insurance, to incentivise those who think that it is right to drive uninsured?

[Mike Penning]

It is estimated that 1.5 million people drive without insurance, which is a huge cost burden to those who do insure, and there is strong evidence that those who are uninsured are likely to commit other driving and criminal offences. However, I assure my hon. Friend that we are looking closely at that.

Rail Services (Nuneaton)

Marcus Jones Excerpts

Wednesday 8th December 2010 Westminster Hall

[Mr Marcus Jones (Nuneaton) (Con)]

I am delighted to have the opportunity to discuss an extremely important matter for my constituents, namely the provision of rail services to Nuneaton. I thank my hon. Friend the Minister, who has taken time from his busy schedule to respond to the debate. I also thank those of my hon. Friends who are here this afternoon for their support; the issue clearly affects neighbouring constituencies as much as it does mine.

My hon. Friend the Minister will no doubt be fully briefed on the subject. However, it might be of some assistance if I first set out the history and background to Nuneaton station. I shall then speak about the west coast main line and lastly about local services, particularly the Nuneaton to Coventry service.

Nuneaton station was opened in 1874, when the London and North Western railway opened the Trent valley section of the west coast main line. It was built to avoid the congested areas of Coventry and Birmingham—even then, we had problems with rail capacity. Unfortunately, Nuneaton’s rail services were considerably reduced under the Beeching axe of 1963. That led to the closure of Nuneaton Abbey Street, Stockingford and Bedworth stations later that year. In addition, in 1965 the Nuneaton to Coventry line was closed to passengers. Happily, in 1988, under the previous Conservative Administration, the Nuneaton to Coventry line was reinstated for passengers, as was the station at Bedworth.

Nuneaton’s association with the west coast main line has not always been a happy one. Tragically, on 6 June 1975 six people died and 38 were injured when the Euston to Glasgow sleeper express crashed just outside the station. The train was carrying the then Labour Minister for Agriculture, Fisheries and Food, Fred Peart, who survived after a short spell in hospital. I do not remember much about the crash as I was only one at the time, but I have seen the dramatic press photographs of that awful incident.

Let me deal with the specific issues that affect Nuneaton rail services. The first is to do with the west coast main line. Traditionally, Nuneaton station’s place on the west coast main line has been a great advantage. Nuneaton enjoyed fast hourly services to London and the north-west, peak and off-peak, until 2008. In that year, the very high frequency timetable was introduced, at which time fast off-peak services from Nuneaton disappeared.

[Mark Pawsey (Rugby) (Con)]

I congratulate my hon. Friend on securing this valuable debate. My constituency is immediately adjacent to his, and those who live in the north of my constituency are served by Nuneaton station. Does my hon. Friend agree that one problem is that investment in the west coast main line led to an imperative on the operator to minimise city-to-city times? One way to achieve that was to reduce the frequency of stops at stations such as Nuneaton and Rugby.

[Mr Jones]

I totally agree with my hon. Friend. I shall return to the subject later.

Passengers wanting a fast service from Nuneaton now face the significant inconvenience of having to take an additional train to Coventry or Rugby to pick up a fast service. The alternative is to make a 30-minute car journey to Coventry or Rugby to catch the fast train.

I campaigned on this important issue before the general election. I wrote to the Department for Transport and to Virgin Trains, the train operator. The response was most unsatisfactory. The Department for Transport blamed timetabling changes on the operator, and the operator blamed the Department for Transport. Neither offered a solution to the loss of amenity for passengers from my constituency. That loss of amenity is substantial, and I fear that it will greatly reduce Nuneaton’s ability to attract inward investment from business and commuters. That is particularly galling given that we are now only an hour away from London and from the north-west.

[Dan Byles (North Warwickshire) (Con)]

I, too, congratulate my hon. Friend on securing this debate. I echo what was said by my hon. Friend the Member for Rugby (Mark Pawsey).

Does my hon. Friend agree that the problem is much wider and that it affects not only the people of Nuneaton but people from Bedworth and the surrounding area of my constituency? They rely just as heavily on effective and fast rail services from Nuneaton station.

[Mr Jones]

As my hon. Friend knows, Nuneaton and Bedworth borough council takes in part of his constituency. People from Bedworth, too, have been disadvantaged by the timetable changes.

That brings me to the future of timetabling. Under the previous Government, there was an unfortunate tendency for too much political interference with timetabling. That often prevented operators from giving better services, including the sort of improvements demanded by my constituents. I was therefore greatly encouraged that the coalition agreement included the clear intention of looking at rail franchising differently, and of considering how the Office of Rail Regulation works so that we have a more powerful regulator. I hope that the Minister will assure me that the regulator’s role is to be strengthened, and that we will see improvements in rail services from my constituency.

I am aware of this week’s announcement on rail franchising, and I broadly welcome the statement. However, I am slightly concerned about the proposed west coast main line refranchising. That will be let from 2012 to 2026, when the first trains are projected to start running on High Speed 2. I was initially led to believe that HS 2 would improve high-speed rail capacity on the west coast main line. However, having had many conversations on the matter with various interested parties, I am slightly concerned that that may not be the case. Will the Minister assure the House that fast services on the west coast main line will survive post-HS 2?

[David Tredinnick (Bosworth) (Con)]

I thank my hon. Friend for allowing me to intervene. The problem affects my Hinckley constituents as it does those of surrounding areas.

I might be able to help my hon. Friend. I believe that the 16.10 Euston to Bangor train may stop at Nuneaton when the new Pendolino trains come into operation. My right hon. Friend the Minister of State at the Department for Transport made that point in a letter to a user group. Has my hon. Friend received information on similar lines?

--- Later in debate ---

[Mr Jones]

I thank my hon. Friend for that. I have not received that information, but if what my hon. Friend says is right, it is most welcome.

It is important that the preferred bidder on the west coast main line deals with a number of points. First, consideration should be given to Nuneaton’s becoming a regular pattern stop, as it once was, to enable more frequent fast services to run from there. Secondly, we should end the moderation of competition rules to allow new providers into the market. I am fully aware that if substantial investment is involved, it may impede changing the rules in that regard. Substantial upgrade work was undertaken at Nuneaton station in 2004, so I hope that changing the rules will not be so much of an issue. I am also aware that open access providers have been assessing the viability of providing additional services on the west coast main line, which brings me to my next important point.

I have discussed capacity with a number of operators and potential operators. My discussions all lead me to believe that there is additional capacity on the west coast main line. If the Minister would confirm that this possibility is under definite consideration, I would be most grateful. Rail usage at Nuneaton has increased over the past five years by 37%, and I have little doubt that there is still capacity to increase it. The neighbouring constituencies of my hon. Friends the Members for North Warwickshire (Dan Byles) and for Bosworth (David Tredinnick) and mine give a catchment area of more than 300,000 people, which has substantial potential.

Having set out my case for additional fast services on the west coast main line, I should like to turn now to the provision of local services, particularly the link with Coventry. My hon. Friend the Minister is no doubt aware of my interest in this matter. He knows, too, that the Secretary of State has kindly arranged a meeting with me next week, which will be attended by several colleagues.

The importance of the link between Coventry and Nuneaton cannot be overestimated. Coventry is the closest city to my constituency. Statistics show that there is a clear correlation between the more affluent areas in my constituency and a travelling distance of 10 and 15 miles to the workplace, and Coventry is the only geographical location that fits that description. There is currently an hourly service from Coventry to Nuneaton, with a stop at the neighbouring town of Bedworth.

Access to employment opportunities for my constituents is vital, as indeed is access to both Warwick and Coventry universities for higher education opportunities. If we are really serious about improving social mobility within the areas of relative deprivation in my constituency—there are a number of such areas in the bottom 20% of the national deprivation indices—improved rail services will play a vital part in closing that gap. An example of how the inequality gap can be bridged is demonstrated by Coventry’s plans to redevelop part of the city centre that surrounds the railway station. The redevelopment scheme is projected to create some 15,000 jobs, from which my constituents would benefit if only there was more convenient rail access for them.

That brings me to the Ricoh arena, which is home of Coventry City football club and the Arena Park shopping centre. Some 600 people are employed there and further development is envisaged. Both facilities are adjacent to the railway line, but, currently, there is no station for a stopping train. That is perverse given that the arena contains not only a large shopping area and conference venue but a stadium, which is set to host football matches during the 2012 Olympic games.

[Mark Pawsey]

My hon. Friend will be aware that the reason for the location of the football stadium—immediately adjacent to the railway line—was that the primary means of access would be by train, yet there is no station. I agree with my hon. Friend that we need to press for such a facility to be introduced at the earliest opportunity so that people from across the country can easily get to the stadium, particularly in time for the rugby world cup in 2015.

[Mr Jones]

That is a perverse situation. On the drawing board, it was envisaged that there would be a station adjacent to the stadium. Unfortunately, it has never materialised. It has been under discussion for 10 years, I think, and, unfortunately, it was very much neglected by the previous Government.

The improvement of Nuneaton’s rail services has been recognised as an issue of great importance for nearly a decade. It is a conundrum that has been greatly ignored. I hope that the coalition Government will give the matter much more urgent and sympathetic consideration. Capacity can be improved, and frequency and usage increased by taking the following measures: improving the line’s infrastructure, including a new platform at Coventry; providing new stations at Bermuda in Nuneaton and at the Ricoh arena; and providing additional rolling stock.

There is a huge lack of capacity at Coventry station, because the Nuneaton-to-Coventry service currently shares a platform with the fast service that connects to the west coast main line. At the moment, providing more local services has to be traded against the loss of the fast services on the west coast main line from Coventry, which is clearly not going to happen and is not an option. An additional station bay at Coventry station would remove the current impediment and allow for a twice-hourly service between the two stations of Nuneaton and Coventry.

A new station at Bermuda in Nuneaton would further strengthen access to the service, particularly from the adjacent area of relative deprivation. The Ricoh arena station would increase opportunities for my constituents to reach a greater diversity of employment and provide much improved access to the arena when matches and events take place. It could also strengthen the position of Nuneaton as a pleasant place to stay during such events, thus increasing the chances of inward investment for the hotel, leisure and hospitality industry.

As I mentioned earlier, additional rolling stock will be required to achieve these improvements. I was glad to see in the Secretary of State’s recent statement that an additional amount of new rolling stock is to be introduced to the overall network. I hope that such an investment will enable existing stock to be moved to lines such as the Coventry to Nuneaton line. I ask my hon. Friend the Minister to take these arguments back to the Department, where I know that an assessment of the Coventry to Nuneaton upgrade project is now under way.

In conclusion, I hope that I have set out an argument based not just on narrow and parochial terms but on economic and social grounds because improvements in services would lead to real benefits for constituencies across Coventry, Warwickshire and Leicestershire. Such benefits would inevitably help a region that has really suffered under the recession that was bequeathed by the Labour Government and reinvigorate an area in which private-sector growth and jobs are badly needed after years of decline.

[The Parliamentary Under-Secretary of State for Transport (Norman Baker)]

I congratulate my hon. Friend the Member for Nuneaton (Mr Jones) on securing this debate and on providing an opportunity for the House to debate rail issues at Nuneaton. Let me preface my remarks by referring to recent statements by the Secretary of State. I hope that my hon. Friend is pleased with the level of the Government’s investment in rail. We recognise the value of rail both in helping growth and cutting carbon emissions.

Let me turn first to the west coast main line. The £9 billion west coast route modernisation project renewed and upgraded the country’s key main rail line. It accommodates many long-distance passenger trains and numerous local and regional passenger services, and handles 40% of the nation’s rail freight business. It was a good example of the railway industry pulling together to deliver a very important project.

Modernisation has delivered a successful and robust railway that has headroom for passenger and freight growth. The west coast main line regularly achieves more than 90% reliability. Passenger growth has been very encouraging, with 4 million additional journeys following the completion of route modernisation, and I expect the growth to continue. This week, I noted that the first new 11-car train of the 106 Pendolino vehicles on order was delivered to the UK for testing and approval ahead of passenger service. Given the level of investment in both the trains and the infrastructure, it is important that the west coast main line timetable secures the best return for taxpayers on the money spent. The timetable ensures that rail contributes the maximum possible to the overall transport network of the country. It has delivered a significant modal shift from car and air. Rail has now doubled its share of the London-to-Glasgow market to around 13%, and to between 75 and 80% of the London-to-Manchester market. Rail serves those markets well.

The current timetable maximises the use of line capacity and fleet resources. However, some difficult choices had to be made when the current west coast main line timetable was designed. As my hon. Friend knows, a few established services and calling patterns were changed. No towns were left isolated. Overall, the vast majority of passengers have benefited, as is demonstrated by the growth that is now being witnessed. Headline improvements delivered with the completion of modernisation include: three trains an hour to both Manchester and Birmingham; new hourly all-day services from London to the Trent valley, Crewe to London and London to Chester; significant journey time reductions, including London to Warrington and Preston to Glasgow services, which are now 30 minutes faster, and London to Liverpool, which is 25 minutes faster; and a full weekend service with journey times and frequencies very similar to weekdays.

I am sure that my hon. Friend agrees that all such improvements are very welcome. One of the difficult choices was the decision to remove the Nuneaton stop from Virgin and west coast off-peak services. Unfortunately, it is not a high-earning station in off-peak times or one where business is likely to grow significantly when compared with other opportunities on the line. Quite simply the revenue and growth opportunities are much greater elsewhere.

The removal of the fast off-peak service was forecast to lose around £200,000 in revenue from Nuneaton. That needs to be set against the £600 million that modernisation will have generated between 2003 and 2011. In the current service pattern, London peak traffic, which accounts for the vast majority of demand and revenue at the station, benefits from a standard journey time of around one hour for the 97 miles. The fastest journey achieves an average speed of over 100 mph, which is one of the fastest commuter services in Europe. To serve more diffuse evening peak travel patterns, fast Virgin services continue to call at Nuneaton throughout the evening.

Off-peak services are provided by the new 100 mph air-conditioned Desiro trains that are operated by London Midland. These services give Nuneaton new hourly direct journey opportunities to towns such as Stoke, Tamworth, Rugby and Milton Keynes. They also provide the opportunity of cross-platform connections with Virgin west coast services at Rugby, giving a total journey time of one hour and 12 minutes to Euston. The previous direct hourly train completed the journey in the longer time of one hour and 15 minutes.

The timetable proposals for the current west coast main line services were widely consulted upon and welcomed in many parts, particularly in the north-west of England. However, I suspect that my hon. Friend wishes to promote Nuneaton’s case further. Therefore I urge him to comment on the consultation draft of the Network Rail west coast main line route utilisation strategy, which is published today. Nuneaton stakeholders will also get the opportunity to present their case during the consultation phase of the west coast franchise competition. The Government plan to issue an invitation in the Official Journal of the European Union for the competition in January 2011 and in due course we will issue the inter-city west coast franchise consultation document. I also urge my hon. Friend to discuss his ideas with the accredited franchise bidders once they have been selected.

The Secretary of State recently gave his approval for Network Rail to proceed with construction of the north chord, which will improve the capacity and reliability of the west coast main line and provide freight trains from the east coast with improved access to the midlands and the north-west. I am pleased to tell the hon. Gentleman today, if he does not already know, that that project has recently attracted €5 million of European Union funding from the trans-European network towards its £29 million cost. I expect construction to start in spring 2011 and take about 18 months to complete.

The hon. Gentleman asked a couple of questions about the west coast main line. In particular, he asked what would happen when the new high-speed line opened. I am advised that it is too early to say what the stocking patterns will be on the west coast main line, but it is obviously anticipated that the faster inter-city services will use the new high-speed line. Perhaps he will want to have discussions with my right hon. Friend the Member for Chipping Barnet (Mrs Villiers), who is the rail Minister, closer to the time, to ensure that the inter-city services are properly factored into the timetable for the west coast main line as it pertains after High Speed 2 opens.

The hon. Gentleman also asked about spare train paths on the west coast main line, in particular whether there were any spare train paths for open access operators. I am advised that the Office of Rail Regulation is investigating that matter, but the key question is whether it is best for an open access operator or for an additional franchise service to use any spare train paths. Open access operators would provide perhaps five trains a day. London Midland has also applied to improve the London to Crewe service. So we must reach a balance in the public interest between the open access arrangements and what might come in from a franchise operation. Nevertheless, his comments are noted by my colleagues.

Let me consider the Coventry to Nuneaton upgrade. Earlier this year, we received a business case submission from Coventry city council, Centro and Warwickshire county council. As the hon. Gentleman knows, the upgrade consists of doubling the frequency of the service between Coventry and Nuneaton, new stations at Bermuda—is that right? I thought that Bermuda was elsewhere.

[Mr Marcus Jones]

It was named after the country.

[Norman Baker]

As I was saying, there will be new stations at Bermuda and the Ricoh arena, and longer platforms at Bedworth. To accommodate the more frequent service, a new bay platform will be required at Coventry station, to which the hon. Gentleman referred. As he knows, all those features are included in the bid.

Consideration of the bid was put on hold pending the spending review. The Department’s spending review settlement was a good outcome for transport, but it was not sufficient to fund the full pipeline of schemes prioritised under the previous system of regional funding allocations. Tough decisions are necessary to get the best value from the available public funding.

The Coventry to Nuneaton rail scheme has been included in the pre-qualification pool for funding from the local major transport schemes budget. That is because we have not yet verified the scheme’s value for money. We will conduct a preliminary sift and make decisions by January about whether that scheme and other such schemes can join the development pool. The decisions in January will be based largely on the ability to deliver significantly within the spending review period and the scope for reduced Department for Transport contributions from those most recently requested, as well as the potential for a scheme to demonstrate a compelling value-for-money case by the final 2011 deadline.

We also need to ensure that some of the more challenging aspects of the scheme are fully addressed. They relate primarily to the ability of the railway to handle the size of the crowds that are forecast for major events at the Ricoh arena and the availability of rolling stock, especially for evening events at the venue. The hon. Gentleman will appreciate that there is a safety issue in relation to huge numbers of people turning up at a relatively small station to try to access a short train; that is a serious issue with using rolling stock for such events at the Ricoh arena. We are now reviewing the business case and we are in regular contact with officials at the three authorities to seek further clarification about certain matters to ensure that we have all the information we need for the sifting process in January 2011.

As I have said, there are a large number of extant schemes in the pipeline. I am sure that some will drop out because they will not be progressed by the promoters of the schemes, and we hope that other schemes will see a reduced cost. Generally, the more we can reduce the cost of schemes, the more likely it is that we can proceed with more of those in the pipeline.

Rail Investment

Marcus Jones Excerpts

Thursday 25th November 2010 Commons Chamber

[Mr Hammond]

In Network Rail’s current control period, there is a programme of capital improvements to the midland main line that will deliver enhanced line speeds, and thus an improved service.

[Mr Marcus Jones (Nuneaton) (Con)]

I welcome the Secretary of State’s statement and the substantial investment in our rail network, but will he explain how much smaller projects such as the important Coventry to Nuneaton rail upgrade will be assessed for future funding?

[Mr Hammond]

My hon. Friend has on a previous occasion asked me to meet him and Opposition Members representing the area. I have agreed to do so, and I look forward to having a meeting with him in due course.