Oral Answers to Questions Debate

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Department: Department for Transport

Oral Answers to Questions

Maria Eagle Excerpts
Thursday 25th April 2013

(11 years, 7 months ago)

Commons Chamber
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Simon Burns Portrait Mr Burns
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Notwithstanding the hon. Gentleman’s cry, that was, of course, the intended policy of the previous Labour Secretary of State and the previous Labour Minister for Transport. We anticipate that the line will return to a franchise operation by February 2015.

Maria Eagle Portrait Maria Eagle (Garston and Halewood) (Lab)
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Will the Minister explain why he has chosen to prioritise a completely unnecessary and costly competition for the east coast main line rail franchise, which will also require him to waste taxpayers’ money on expensive extensions to other contracts, some for as long as four years?

Simon Burns Portrait Mr Burns
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I am afraid that the premise of the shadow Secretary of State’s question is factually incorrect and misguided. The reason we are moving the east coast main line back to a franchise is exactly the same—[Interruption.] The hon. Lady should stop chuntering.

Simon Burns Portrait Mr Burns
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I am answering the question. The reason why we are moving the line back to a franchise is exactly the same as why the shadow Secretary of State’s right honourable friend Lord Adonis was going to do it when he said:

“I do not believe that it would be in the public interest for us to have a nationalised train operating company indefinitely”.—[Official Report, House of Lords, 1 July 2009; Vol. 712, c. 232.]

Nor do we, and that is why we are ending it.

Maria Eagle Portrait Maria Eagle
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It does not sound like the Minister actually knows what is happening on the east coast main line: 3 million more seats, best ever punctuality, lowest taxpayer subsidy, £40 million of extra profit invested and £800 million returned to the taxpayer. He should stop talking it down. Will he confirm that all of the planned east coast upgrade—all the investment that his hon. and right hon. Friends claim is necessary—will be paid for by the taxpayer? None of this investment is dependent on privatisation. The fact is that private train companies now receive more from the taxpayer each year than they pay back in, so why is he doing this?

Simon Burns Portrait Mr Burns
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I sometimes wonder which world the shadow Secretary of State lives in. If she would just do us all a favour and listen for one minute, I will offer her an explanation. First, the premium that the east coast main line pays to the Treasury is less than that paid by the west coast main line. Secondly, if the hon. Lady looks at reliability over the latest four-week period, she will see that the east coast main line is the worst of the 19 operators. Thirdly, we have found that the operator did a reasonable job in difficult circumstances when it had to take over the direct operation, but that it has now reached a plateau. Fourthly, yes, there will be taxpayers’ money involved in investing in the east coast main line, but, more importantly, the involvement of the private sector means that we can increase, over and above the taxpayers’ money, the money that can be invested in enhancing and improving the service for passengers.