(9 years, 11 months ago)
Commons ChamberI shall just finish responding to the hon. Member for City of Chester (Stephen Mosley), then I will give way. I had not realised that I was quite so popular. The hon. Gentleman claims that the delays are being tackled, but the DWP’s target is to determine a claim in 16 days. If someone has no money and they have to wait 16 days for their benefit claim to be determined, and then wait for the cheque to arrive, they are going to have to go to a food bank. I do not think that those targets, whether they are being met or not, are anywhere near good enough, and nor did the report, “Feeding Britain”, which suggested that claims ought to be cleared within five days.
Why are DWP Ministers not doing something about this? They appear indifferent. The Minister for Employment has said that
“there is no robust evidence linking food bank usage to welfare reform.”
That is because she refuses to collect such evidence. Either the Ministers are indifferent and incompetent, or they are indifferent and venal. In reality, they do not care enough about the problems to take any action.
We ought to take note of the experience of other jurisdictions where food banks have become part of the social security system. Professor Liz Dowler of the university of Warwick carried out a piece of research—long-delayed, I might add—for the Department for Environment, Food and Rural Affairs. When she commented on it on the “Today” programme, she dismissed the idea of using surplus food as a solution to hunger, saying:
“There is no evidence from any country that has systemised using food waste to feed hungry people that it is effective. It is better to reduce”
that waste. I am concerned that what has happened in Germany and Canada could happen here—that is, that we could institutionalise dependence on food banks. Policy makers on either side of the House should be very careful before embarking on a policy that institutionalised food bank use in this country.
Is it not clear that this is not just about delay and error, and that what is happening is partly a direct result of a deliberate policy? Benefit sanctions in particular have been a major cause of people going without food, sometimes for lengthy periods. That is not accidental; it is deliberate and it needs to change.
I cannot disagree with my hon. Friend. There is a deliberate attempt by DWP Ministers in this Government to sanction and stigmatise people who are on benefit.
The cost of living crisis means that people are more than £1,600 a year worse off since 2010. Living standards will be lower at the end of this Parliament than they were at its beginning. Prices have risen faster than wages for 52 of the 54 months that our Prime Minister has been in office. There are more working families living in poverty in the UK today than families with nobody in work—for the first time since records began. The cost of some food essentials has gone up in the past six years by as much as 20%. Families on the lowest incomes spent almost a quarter more on food last year than they did six years ago—they were already the families who spent the largest share of their income on food. People are now buying fewer, cheaper calories; they have been forced to trade down to less healthy, less nutritious, more processed foods.
It is not just food that has been going up in price: since 2010, people have been paying £300 more on average for energy to heat their homes and keep their lights on; water bills have gone up, with one in five people struggling to pay them; the cost of housing keeps rising, with renters now paying on average over £1,000 a year more than in 2010; and for those with children, the rising price of child care is making it harder and harder to take on work.
Yet during this time the Government have done nothing to address the cost of living crisis—and they plan much worse. Robert Chote, chair of the Office for Budget Responsibility, said plans in the autumn statement now take
“total public spending to its lowest share of GDP in 80 years.”
The Institute for Fiscal Studies says the Government’s plans would take
“total government spending to its lowest level as a proportion of national income since before the last war”.
This Tory plan to recreate 1930s Britain, along with its hunger, low pay and non-existent rights at work, coincides with changes to the labour market making it tougher to make ends meet, even for someone who is in work. The “Feeding Britain” report says that 25% of food bank users are in work and the Trussell Trust says that 22% are: increasingly, being in work is no longer a guarantee against going hungry in Britain today. David McAuley, the Trussell Trust chief executive, said that
“we’re…seeing a marked rise in numbers of people coming to us with ‘low income’ as the primary cause of their crisis. Incomes for the poorest have not been increasing in line with inflation and many, whether in low paid work or on welfare, are not yet seeing the benefits of economic recovery.”
He is correct.
(11 years, 4 months ago)
Commons ChamberIt is fair to say that there are concerns about connectivity and what is happening at the southern end, but it is also fair to say that the Government of the day must decide. It is reasonable for the Opposition to raise issues, but, with projects over multiple Parliaments, we must accept, as an Opposition, that we are not quite as well resourced as the Government of the day to come up with well-thought-through alternatives. The Government of the day have to make the decisions, but it is fair enough for opponents and supporters of the scheme to raise issues, recognising that, if the project is ever to be delivered, the Government of the day must decide on the way forward.
I did not quite catch my hon. Friend’s answer to the hon. Member for Na h-Eileanan an Iar (Mr MacNeil), who asked about taking the line north of Leeds and Manchester. Will she confirm that we would wish to see the high-speed services and line taken north of Leeds and Manchester in due course? It is not just a question of speed, however; it is also a question of capacity, because, as she pointed out, the construction of high-speed lines further south will free up capacity on existing lines, but that will lead to capacity problems if all the high-speed trains end up going on the existing lines further north.
I understand my hon. Friend’s point, and the one I made in response to the earlier intervention was simply that we had to get to Leeds and Manchester before we could go further. Work is going on—led by the Department, I think—looking at the prospects for further phases, if one wishes to put it that way, after we have got to Leeds and Manchester.
The delays over the past three years are no surprise, given that the Department has been promising to publish a transport strategy ever since the election, but has yet again delayed it until later this year. The failure to deliver progress on this new railway line could not be a better example of what happens when one decides on a transport strategy towards the end of a Parliament, rather than at the beginning. It means major transport decisions—for example, how we connect the new rail line into Britain’s hub airport at Heathrow—are not being taken forward in an integrated way. That is entirely a consequence of ducking the big questions on aviation for the whole Parliament and of the Government’s decision, which we believe to be wrong, to tell the Airports Commission not to report until after the next election.
It is not just the rapidly slipping timetable that raises alarm bells and worries those of us who support this project. The National Audit Office wrote:
“We identified three areas of risk to the Department’s effective governance of the High Speed 2 programme:… Underdeveloped governance and programme management… Insufficient resources in the Department’s High Speed 2 team”
and
“Inadequate stakeholder management”.
The criticism that Ministers failed sufficiently to resource the team in the Department will be familiar to anyone who has followed the fiasco over the collapse of the Government’s rail franchising programme. The NAO has warned that there is
“a high risk that it may have insufficient skilled staff in the areas of procurement, corporate finance, rail technical and programme management.”
Yet again, the reckless way in which the Department was reorganised after the election and the scale of cuts to key staff have put a major project at risk.
The Government have finally, belatedly, appointed a new director general for HS2 as well as a new senior management team, which is welcome news, but is it not extraordinary that, just as with the west coast main line fiasco, it took so long for a senior responsible owner to be identified for the project? No wonder the Major Projects Authority has rated the delivery of the new rail line as amber/red. That should have been a clear warning to Ministers to take its concerns seriously, not simply dismiss them as irrelevant.
To be fair to the Secretary of State, there was one bit of good news in the otherwise highly critical report from the MPA. It found that
“the Department has strengthened its working relationship with HM Treasury.”
That is very sensible indeed, particularly in the light of the NAO’s concerns about the budget for the project. It has called the Department’s use of a precise estimate of £16.3 billion for the cost of phase 1 of the scheme as “unwise”, as I think we have discovered today. It said that an honest figure would be between £15.4 billion and £17.3 billion, so I welcome the fact that the Secretary of State has today given updated figures. I am sure that he will continue to do so, as he has undertaken to do.
The NAO was also unable to verify the Department’s claim that the £1.5 billion savings recommended by Infrastructure UK could be delivered. Work apparently only began on identifying those savings in September. The House needs to be told whether the savings have now been locked in. The NAO also raises doubts about the Department’s claim that phase 1 will result in reduced operating costs on the existing network of £3 billion over 60 years. This is on the assumption that fewer long-distance services are likely to run on the west coast main line, but because the Department has not set out any revised service patterns it is difficult to see how such a precise and neat rounded figure has been generated.
The Government should also be clear that the £42.6 billion cost of completing the north-south line as far as Leeds and Manchester does not include the £7.5 billion cost of the trains to run on the line. The Secretary of State has made that clear today. These factors are an essential part of the project, and they ought to be included in the estimates in future.
Worryingly, the National Audit Office also claims:
“The Department has not included VAT in its cost estimates or affordability assessments”,
and warns that
“HS2 Limited will be liable for VAT at 20 per cent on almost all of its spending.”
Ministers need to confirm that the Chancellor and Her Majesty’s Revenue and Customs have agreed that the VAT will be reclaimable. If that will not be the case, that should also be accurately reflected in the budget.
The NAO also warns that, even with the additional £3 billion capital spending from 2015-16 that has been confirmed today, there is a risk that the project
“may restrict the ability to fund other capital projects across government”.
It goes on to warn:
“We estimate that there could be a gap in affordability of £3.3 billion spread over the four years from 2017-18 to 2020-21, which are the peak spending years for phase one.”
The Secretary of State will, I think, have negotiated something in that respect, but he must make it clear, when he can, that the settlement he has reached with the Chancellor—the details of which we might get tomorrow—has closed that funding gap in full. It would be unacceptable if the Department’s failure to plan the spending needed for this scheme were to result in any cuts or delays to the vital upgrading on the rest of the network. That includes the rolling programme of electrification and new inter-city trains, both of which have already been delayed or scaled back under this Government.
Finally, on the budget for the scheme, there is already a creeping increase in spending from the allocation set for this Parliament in the 2010 spending review. The Minister of State, Department for Transport has admitted to me in a parliamentary answer that the budget for the current spending period has been revised upwards from £773 million to around £900 million. That is worrying in the context of the legislation we are debating today, which will effectively give Ministers a blank cheque from Parliament to spend on the scheme. I am sure that the Secretary of State will keep Parliament fully apprised of where the money is going.
In addition to the delays and the criticisms of the budget, serious concerns have also been expressed about HS2 Ltd. It was initially set up to advise Ministers on the route for the new north-south line, but the Government have expanded its role to include building support for the scheme and then delivering it, despite the fact that HS2 Ltd has faced criticism for the way in which it has engaged with communities along the route, with local authorities and with MPs. The fact is that it has not proved to be an effective advocate for the scheme.
The NAO has issued a warning on this, too, saying:
“The programme has a complicated governance structure. This is because the Department aims to preserve some independence for its development body, HS2 Limited, while also maintaining effective governance.”
By divorcing the scheme from delivery of the investment in the existing rail network, there is a risk that we will not focus on the need to create a fully integrated single rail network. It makes no sense that Network Rail is, in effect, having to mirror some of the work of HS2 Ltd, including appointing staff of its own to work on the scheme and having to lobby HS2 Ltd to ensure that decisions are taken in a way that does not have a negative impact on the wider network.
It is increasingly clear that a better option would be to transfer responsibility for the planning and delivery of the new north-south rail line to Network Rail. That would reduce duplication and cost while better enabling the integration of investment in the existing network and the new line. The hopelessly inadequate plans for connecting the new north-south line with HS1 are a good example. The focus of the debate on this issue has been on whether there would be any demand for services from the continent to go further north than London. We should surely not turn our backs on the opportunity to end unnecessary and environmentally damaging short-haul flights, but the real case for getting the connection right involves the opportunity to run the excellent Javelin trains that served us so well during the Olympics further up the country, instead of simply between the coast and the capital.
(12 years, 2 months ago)
Commons ChamberMany questions have arisen from the announcement in the recess about the west coast main line. The hon. Gentleman is right to highlight that the winning bidder—we must remember that legal action is ongoing, so we are restricted in what we can say—has made that commitment, but issues have been raised over the deliverability and reality of the assumptions behind the winning bid. Those issues have been raised not only by some of the losing bidders but by other experts in the industry.
Given what my hon. Friend has said, does she understand my concern and that of many of my constituents about what might happen to the east coast main line franchise when it comes up for reconsideration? Does she agree that there is a strong case at least for considering keeping the east coast main line in the public sector, so that there is not this pressure on requiring payback in profits and payback for the Government, which was clearly one of the issues in the west coast franchise?
I agree that there is a strong case for having a public sector comparator, at least when looking at franchising. That is how the current system operates.
(12 years, 9 months ago)
Commons ChamberI am grateful for the right hon. Lady’s intervention. I was just quoting what BAA said, and I hear what she says about her own efforts, which I commend.
There are three key reforms in the Bill—to economic regulation, to the Civil Aviation Authority itself, and to the transfer of security functions. I want to turn briefly to the wider aviation context within which the reforms will sit. We agree that the current framework for airport economic regulation is outdated and needs reform. It has been clear for some time that the CAA does not have the powers to apply the regulatory regime in a way that best benefits passengers and reduces costs for the industry. We are also dealing with a very different aviation landscape since the introduction of the existing regime, not least because of a major increase in passenger numbers, low-cost airlines, growth in regional airports and changes to ownership required by the Competition Commission. The proposed licensing regime, together with a more flexible and targeted set of regulatory tools, will better enable the CAA to carry out its work, while making its decisions more accountable, and reduce unnecessary regulation.
It is also right that the regulatory regime governing airports be reformed to put passengers at its core. The CAA’s primary duty should be to promote the interests of passengers. That was our intention in developing the reforms, and we are pleased that that approach has been accepted and adopted by the Government. We hope that in Committee the Minister will look carefully at the arguments that have been made and be clearer about how the CAA is to weigh the often differing interests of current versus future air transport users and, as the Select Committee has urged, explain in more convincing detail how the proposed aviation consumer advocacy panel will work in practice and, in particular, how it will identify, represent and promote the interests of passengers and relate to the regulatory process.
The lack of a specific requirement to publish passenger welfare plans is a major omission and should be addressed. It was a key recommendation from the Select Committee following its inquiry into the failure of both Government and industry to prepare and respond adequately to the severe winter weather in December 2010. The appalling experience faced by many passengers, particularly at Heathrow, demonstrated the need for the sector significantly to up its game in relation to passenger welfare. I welcome the new powers that the legislation will give the CAA and the Government and hope that the Secretary of State will issue clear and robust guidance to airport operators on winter resilience. However, we would like to see a specific obligation on the CAA to include in any licence issued a requirement that airports provide support to stranded passengers.
The Government must also ensure that each recommendation of the Quarmby report on the resilience of England’s transport systems in winter is implemented, particularly those relating to the need for early decisive action on whether to cancel services; the supply of de-icing and anti-icing products or road salt; better liaison between airports and local highway authorities over the treatment of appropriate public road networks; and improved access to performance statistics on the management of disruption by airlines and airports.
The former Transport Secretary, the right hon. Member for Runnymede and Weybridge (Mr Hammond), stood in the snow at Heathrow just over a year ago and pledged to learn the lessons of the chaos passengers faced. I know that because I was standing in the snow freezing alongside him and, more importantly, alongside thousands of stranded passengers. At the time he blamed Heathrow for seriously underestimating the amount of de-icer required and raised the prospect of establishing a central reserve for emergencies, much as exists for road salt. The Government should provide an update on this—they have gone quiet lately—and on the other promises made at the time. As well as the powers that this Bill rightly gives the CAA, the current Secretary of State must ensure that the Government do not take the view that this is all the responsibility of the industry. There is a strategic and economic need, as well as a UK reputational requirement, for the Government to get a grip on winter preparedness. I recall the Minister responsible for aviation telling the media on Boxing day 2010 that the Bill would do just that, but it is not obvious to me that it does it sufficiently well, so we will explore that further.
The CAA should also be required to focus licences on the specific experience of passengers in airports. That means, as the Transport Committee has urged, specifically structuring licences to address key areas of passenger satisfaction, including immigration and baggage handling. We all know that the failures that most give rise to frustration and anger, not to mention ruining business trips and holidays, are delays caused by inadequate management of immigration and poor baggage handling. Of course, although airports should rightly have obligations in this respect, the Government must also recognise that their decisions have an impact that is out of the hands of airport operators, not least the way they resource and manage the UK Border Agency. The speed and scale of the Government’s cuts is putting pressure on the agency. People across the country fear that corners are being cut and border security is being put at risk by the scale of the Government’s border cuts. Some 6,500 staff are going from the agency, with 1,500 going from the UK border force, including more than 800 this year alone. In the past year, we have already had the situation whereby the Home Secretary did not know what changes to border controls she had agreed to, how they were being implemented or how great the security risks were, and relaxing controls was a direct consequence of those staffing reductions.
It is incredible that the Government have overseen a reduction in checks at border control. The public expect proper immigration controls, and passengers expect there to be sufficient staff to prevent massive delays at airports, which damage our image and can impact on investment and business competitiveness. We agree that the passenger must be placed at the heart of the regulatory regime, but the Government must do the same as they carry out their responsibilities.
The Government should also consider the airlines’ case that, in the context of airport regulation, they too are customers. Although we agree with the Government that the law should be absolutely clear that the CAA’s primary duty is to passengers, we agree also that there is a case for a secondary duty to airlines, so the Minister should look again at the decision not to include such a duty.
Although it is right that we set out a primary duty on passengers to send a clear signal to the CAA about how it should manage competing interests, it is right also that we set out further duties. In doing so, however, the Government have chosen to omit the reference to environmental obligations that we intended the Bill to include. That is a mistake, so I very much hope that the Minister will reflect on it and think again.
Back in March 2009, the consultation document on economic regulation that the then Secretary of State published proposed that
“the CAA should have an environmental duty with respect to its economic regulatory functions.”
The final report of the Cave review recommended
“a duty on the CAA to protect the environment, subject to guidance on specified environmental matters by the Secretary of State.”
In December 2009, the previous Government published their decision document on economic regulation and concluded that one of the supplementary statutory duties should be
“to have regard to the airport operator’s legal obligations to comply with applicable environmental and planning law.”
When one considers the secondary duties that have been set out, one finds the absence of any environmental obligation to be a clear omission—and a late one: it was included in the press release accompanying the publication of the Bill, just not in the Bill. The CAA will be obliged
“to ensure that licence holders can finance the activities which are subject to the relevant licence obligations; to secure that all reasonable demands for airport services are met; to promote economy and efficiency on the part of licence holders in its provisions of airport services at regulated airports; to have regard to guidance issued by the Secretary of State; to have regard to any international obligation of the UK; to have regard to principles of better regulation.”
All those obligations are of course right, and we support them, but there seems to be no justifiable reason for removing the proposed additional requirement on the CAA in terms of economic regulation: to have regard to airport operators’ compliance with environmental and planning law. Without that, airports may be reluctant to invest in improving environmental performance, be it noise, vibration, visual disturbance or emissions.
It is not good enough for the Government to say it is obvious that airports must comply with statutory obligations and it does not need re-stating in the Bill. The issue is whether airports feel that they can recover the cost in charges to airlines. The consequence, as the Transport Committee has warned, is:
“Without giving the CAA a supplementary duty on the environment in relation to its economic regulation role, there is some risk that airports may be reluctant to invest in improving environmental performance.”
Is the situation not worse than that? Is there not a danger that specifically removing the reference to environmental planning concern might be taken by some airport operators as a coded message that the Government do not take such issues seriously now?
My hon. Friend makes a good point. There are plenty of people who seek to read coded messages in what the Government do, or do not do, and in how they change their proposals, so in that respect there is a concern that the Government need to address.
If the Government’s green credentials had not already worn so thin, no ulterior motive might have been seen in their decision, but there will be considerable suspicion that it is yet another example of giving in to vested interests, coming on top of the Government’s failure to reassert the aviation emissions targets that we set in government, let alone to listen to the calls to look seriously at the UK’s share of international emissions and to include both in the UK’s carbon budgets. When the obligation on other sectors is to reduce carbon emissions by at least 80% by 2050 compared with 1990 levels, the aviation industry has agreed to work towards achieving the lower target of the same reduction but compared with 2005 levels. However, the industry believes that it can achieve the same reduction compared with 2000 levels. On that basis, we believe that the Committee on Climate Change should advise on the case for a tougher target. It is clear that the Bill sends out completely the wrong signal to industry.
The CAA, airport operators, airlines and National Air Traffic Services have a shared responsibility to achieve those goals. In addition to the original proposed duty on environmental and planning law, which has been deleted, there is surely a case for considering the practicality of using this Bill to reaffirm the shared responsibility on meeting emissions targets that have been agreed. That should be explored during the passage of the Bill.
The public should certainly be better informed about the environmental effects, including through emissions and noise, of civil aviation in the UK and about the measures that are being taken to limit the adverse environmental effects. I want to take this opportunity to welcome the CAA’s decision to open a three-month consultation on its environmental role and performance. The chief executive, Andrew Haines, has said that he is determined to work with the sector to help it manage its environmental footprint and realise its potential growth. He is clear that
“unless the sector faces its environmental impact head-on, it will not be allowed to grow.”
He is right to have set the goals to
“contribute to a cleaner and quieter aviation industry, improve airspace design through new operational measures, influence the environment debate and enhance consumer understanding of the environmental impact of flying.”