South-Eastern Rail Franchise

Phil Wilson Excerpts

Tuesday 23rd April 2019 Commons Chamber

[Andrew Jones]

The issue for me is how to ensure that the trains are run on time every time, but when things go wrong we need a compensation scheme that is fair to the traveling public. I share my hon. Friend’s impatience to get the benefits that will come from this franchise award to the constituents he serves so well. I will keep him updated on progress, including on DR15.

[Phil Wilson (Sedgefield) (Lab)]

As the Minister knows, the contract for the rolling stock for the London underground deep tube was awarded to a company that intends to build the majority of the rolling stock in Austria, having promised that it would be built in the UK. What guarantees can he give that the company awarded the new south-eastern rolling stock contract will build the trains in the UK and provide work for train companies such as Hitachi in Newton Aycliffe in my constituency?

[Andrew Jones]

The hon. Gentleman is a great champion for that rail company in his constituency. He has told me about it on a number of occasions, and I hope to visit the plant shortly. I have met the company, and I am aware of the quality of its product. I cannot direct where a private company places an order. We are in an open market economy—we have competition, which delivers passenger benefits, value and passenger experiences that were never possible when this railway was nationalised. I am sure that those who are making the purchasing decisions will be aware of the point he makes and of the merits of British manufacturing.

Airports National Policy Statement

Phil Wilson Excerpts

Tuesday 5th June 2018 Commons Chamber

[Chris Grayling]

Now is definitely the time to take a decision. I agree that transport links to Gatwick need to improve, which is why Gatwick station is one of the projects that we are working on with the airport at the moment, but I am grateful for my hon. Friend’s support.

[Phil Wilson (Sedgefield) (Lab)]

The north-east is a global-facing region, and links to an international hub are critical for its economy. A third runway at Heathrow is a strategic necessity and essential to Durham Tees Valley airport, which is in my constituency, and Newcastle airport. The Secretary of State says that 15% of slots will be for domestic connections, but how can he guarantee that? Will domestic slots be ring-fenced? What are the implications for Durham Tees Valley airport?

[Chris Grayling]

Durham Tees Valley is one of the airports that Heathrow has identified as a potential beneficiary of the expansion, and I am clear that there will be legally binding mechanisms in place to reserve slots for regional airports. That is part of the core rationale for making this decision, and the project would have much less credibility without it, so I have every intention of ensuring that we deliver those protections for our regions.

Durham Tees Valley Airport

Phil Wilson Excerpts

Wednesday 22nd November 2017 Westminster Hall

[Phil Wilson (Sedgefield) (Lab)]

I beg to move,

That this House has considered the future of Durham Tees Valley airport.

I applied for this debate to give support to Durham Tees Valley airport and the Peel Group, which plans to grow the airport. In the last decade or so, Durham Tees Valley has faced major difficulties, as have many other regional airports across the country. It has had to face the fact that the aviation industry has radically changed.

Durham Tees Valley airport started life in 1941 as an RAF base originally called Goosepool. In 1964, it became Teesside International airport, and it was renamed Durham Tees Valley airport in 2004. In 2003, the Peel Group purchased a 75% share in the airport, with the six local authorities sharing a 25% stake; today, it owns 89%. The Peel Group is a private sector investment group with a strong presence throughout the north of England.

In 2006, passenger numbers peaked at 910,000, with BMI flying a regular service to Heathrow. In 2007, the global recession hit the airport, as it did everywhere else. A year later, Flyglobespan, an airline using the airport, went into administration, which caused passenger numbers to fall by thousands. In 2009, BMI withdrew its Heathrow service, and passenger numbers fell from 645,000 to 288,000 in just 12 months. Durham Tees Valley was not the only regional airport to lose such a connection, as airlines sought to concentrate their remaining slots at Heathrow on more lucrative international routes. Passenger numbers today are between 130,000 and 140,000—almost a tenth of what they were a decade ago.

KLM’s flights to Schiphol three times a day and Eastern Airways’ flights to Aberdeen now account for the bulk of passenger numbers. The airport is currently making a loss of between £2 million and £3 million a year.

[Alex Cunningham (Stockton North) (Lab)]

My hon. Friend mentions the airport’s losses. The Tees Valley Mayor’s pledge to buy the airport has captured voters’ imagination. He told me he can do that without involving taxpayers’ money. Does my hon. Friend agree that it is now time for the Tees Valley Mayor to publish his business plan to buy the airport, complete with numbers and sources of funding, or just be honest about it and admit that he cannot deliver that promise?

[Phil Wilson]

The Tees Valley Mayor has a few questions to answer on this issue. I will come to that matter later in my speech, but I am pleased that my hon. Friend raised it.

Despite the losses and the low passenger numbers, there is still a strategic role for regional airports. There is a strong correlation between regional GDP, employment in air-intensive industries and aviation connectivity. Regional airports provide a major gateway for visitors to the region.

[Mike Hill (Hartlepool) (Lab)]

Does my hon. Friend acknowledge that the workers at the airport have sacrificed pay and conditions and will soon sacrifice their pensions as part of the efficiencies to keep the airport going?

--- Later in debate ---

[Phil Wilson]

My hon. Friend raises a significant issue. About 600 people work at the airport, and we all want to ensure that they continue to have a job.

[Catherine McKinnell (Newcastle upon Tyne North) (Lab)]

My hon. Friend and I have worked together closely on this issue. I represent Newcastle International airport, which is also a big employer in my constituency and the region. Does he agree that the links to Heathrow from our region are vital, so the Government must get a move on? We look forward to hearing a proper announcement that this will go ahead in the near future.

[Phil Wilson]

That is another valid point that I will come to later in my speech.

[Dr Paul Williams (Stockton South) (Lab)]

My hon. Friend is being very generous in giving way. I recently met a team from the Great North Air Ambulance Service, which is based at the airport. So far this year, it has responded to 400 calls in an area covering 8,000 square miles in the north of England. Will my hon. Friend join me in commending the vital work that it does in serving our communities? Does he agree that we should continue to do what we can to support that great charity?

[Phil Wilson]

The air ambulance service, which is based at the airport, provides a great service for the area. Where I live, I can sometimes see it flying over to get to an incident. It is a great charity, and I want to see it grow and prosper there.

Regional airports support the business community, whose key needs from regional air services are an increase in destinations and the frequency of flights to major travel hubs such as Schiphol, access to major markets, and links to London and the south-east, especially Heathrow. A third runway at Heathrow airport is key for regional airports such as Durham Tees Valley, which has been listed as one of the regional airports that will have access to it.

Durham Tees Valley airport plays a much wider strategic role in the region. It has been consistently recognised as a key asset for the region in regional strategic plans and national reports such as Lord Heseltine’s independent report, “Tees Valley: opportunity unlimited”. The report also highlighted the importance for the Tees Valley economy of having international connectivity with its global trading partners, and highlighted the opportunities that the airport brings for logistics, freight and wider aviation-related services.

Durham Tees Valley can drive a major employment cluster of both aviation and non-aviation businesses in and around the airport. Regional airports typically have the space, capacity and environment to host such businesses in a way that larger passenger-focused airports cannot. Durham Tees Valley’s 800-acre site, known as Aero Centre Tees Valley, is a prime example of that. To unlock those investments, the airport needs the support of local and national leaders and public sector partners to create the right conditions for investment in public infrastructure. I would love to hear from the Minister what more the Government can do to help.

[Alex Cunningham]

As part of that connectivity, the airport needs a proper rail service. The railway line actually skips the airport, and there is no proper service serving it. Does my hon. Friend agree that the Minister can turn his attention to that as we look at rail infrastructure across the piece?

[Phil Wilson]

Again, my hon. Friend pre-empts something I am going to say in my speech. I will mention the rail link, because it is very important.

The airport can attract investment while taking into consideration trends in the UK regional airport sector. In the eight years between 2007 and 2015, the north-east of England was badly impacted by the global financial crisis, which affected the region’s economy and subsequently its demand for air travel. The north-east of England was the worst hit of all UK regions. Air traffic in 2015 was almost 1.7 million passengers per annum lower than in 2007 —a 26% reduction. The airport lost 592,000 passengers, representing about 80% of its traffic, and Newcastle airport lost about 20% of its traffic. The same trend was seen across the UK, particularly at smaller regional airports, as capacity was reduced or redeployed to major airports. However, no region was affected as much as the north-east.

This is not just about the north-east and Durham Tees Valley. This issue affects other regional airports throughout the country, but to a lesser extent. Passenger numbers have fallen dramatically in several regional airports. Prestwick airport lost more than 1.1 million passengers between 2009 and 2016—a 63% loss. Cardiff airport lost more than 280,000 passengers, and Bournemouth lost more than 200,000 passengers. The notable exception is Leeds Bradford, which saw significant growth over the period, achieved by heavy incentivisation, which resulted in ongoing losses. The last set of accounts, published in March 2016, showed a loss of £3.8 million.

In addition to suffering reductions in the passenger and freight tonnage numbers, a number of regional airports have encountered more fundamental problems over the period. In 2007, loss-making Plymouth closed. In 2013, the Scottish Government took loss-making Prestwick into public ownership. Since then, £40 million of public money has been invested in the past four years, but that has done nothing to stop the reduction in passenger traffic and continuing losses of about £9 million. Loss-making Cardiff was also taken into public ownership by the Welsh Assembly that year. Between 2009 and 2016 passenger numbers at the airport fell by 280,000, or 18%. In 2014, loss-making Manston closed, as did loss-making Blackpool as a full-service airport. For me, therefore—this is a key point—regional airports must seek a diversification strategy to ensure financial sustainability and to continue their wider role as economic catalysts, supported by public sector investment and infrastructure. That is the approach that the Peel Group is taking.

Besides KLM, Eastern Airways and Loganair, other users of the airport include Cobham Aviation Services, which has a training and testing contract with the Ministry of Defence; the Serco International Fire Training Centre, which is one of the leading aviation fire training centres in the world and has a 20-acre dedicated training site with simulators and the largest confined-space rigs in the UK; TNT, which operates a logistics operation out of a dedicated hangar; Thales, which is on site to operate delivery contracts related to air traffic provision for the armed forces; and Sycamore Aviation, which provides aircraft end-of-life services. Larger ad hoc passenger flights occur sometimes in the form of military charter flights, carrying troops based at nearby garrisons. A number of general aviation flying schools operate from Durham Tees Valley, using two or four-seat light aircraft. The number of business aviation flights is growing steadily, operating aircraft types that range from single-engine private to large transatlantic business jets. More than 80% of the operating costs of an airport are fixed, meaning that regardless of the passenger numbers the airport operation has a significant cost base.

The Airports Council International reports that in Europe 73% of airports handling fewer than 1 million passengers and 59% of those handling fewer than 3 million passengers are loss making. Recognition of challenging times and the need to prevent Durham Tees Valley from becoming yet another casualty led to the development of the airport master-plan by Peel. Published in 2014, it is designed to chart a path for the airport to 2020 and beyond.

Securing the future of aviation services is dependent on accepting the realism and rationale set out in the master-plan. In the plan, Peel understands that DTVA needs to concentrate on those aviation services in which it has strength, including building on those services that are important to the business community, such as flights to Schiphol and Aberdeen. A well-established general aviation centre provides scope for growth and, since the launch of the new master-plan, new companies have been attracted.

In 2015 Peel launched the Aero Centre Tees Valley, which is the umbrella brand showcasing the development opportunities available throughout the airport site. The Aero Centre offers a wide range of land and property opportunities and markets opportunities for aircraft hangarage of 290,000 square feet and general employment space of 3.5 million square feet. The Aero Centre is connected by rail and by the UK’s largest exporting port and its fastest moving commuter road network, which is on our doorstep.

Central to the strategy for aviation operations is the need to look at all possible means of generating other income streams by exploiting the potential of one of DTVA’s main strengths, which is its extensive land holdings. Airports that have succumbed to closure have not had that option and, without it, closure would almost certainly have become a necessity for Durham Tees Valley. To help finance the master-plan, provision was made for housing development on land north of the airport. The sale of the land for more than 300 houses will generate millions of pounds for Peel, 100% of which will be reinvested in the future of the airport.

[Alex Cunningham]

Will my hon. Friend give way?

[Phil Wilson]

I would love to get on, because I want to hear from the Minister.

The focus is on the north side of the airport, but the south side has great potential too. Peel believes that its master-plan has the potential, over time, to generate about 6,000 jobs. I believe that Peel has a plan, and it has shown commitment to the airport, which is proved by the investment of £38 million over the past 14 years or so. Peel has shouldered the airport’s losses while investing in capital infrastructure. The fact that it is prepared to invest 100% of the money raised from the land sale for housing proves its commitment for the long term. It is being realistic when it says that the focus of its air passenger strategy is those routes that provide for the business community, because that is where the strength is now, but at the same time it is doing what it can in a difficult market to attract leisure flights to the airport.

I believe that, for all the frustration the local community feels about the airport, there is a route out of the problems that it has faced. The master-plan is robust, and the airport supports 600 jobs, contributes £37 million gross value added to the Teesside and Durham economy and is a catalyst for economic prosperity.

Some have said that DTVA has been allowed to decline. As I have shown in my speech, however, it is not alone in the problems it has faced. Some say that fresh thinking is needed, but I believe that Peel’s master-plan is evidence of that. Some say that a practical and pragmatic approach is needed, but Peel is showing that too. I do not agree with those who say that the answer to all of the airport’s problems is to take it back into public ownership but, apparently, that is the view of the newly elected Conservative Mayor for Tees Valley.

First, the airport is not for sale. Secondly, Peel has invested and covered the airport’s losses of £38 million since 2003. The airport loses between £2 million and £3 million a year so, if a private sector company is willing to carry that financial burden while remaining committed to securing a sustainable future for the airport, why transfer the burden to the taxpayers of Tees Valley and Durham? I have no idea how much the airport would cost to buy, but I imagine that Peel would want some compensation for the millions of pounds it has already invested in the site. As the local MP, I have worked with Peel for the past 10 years, and they have not been easy times for the airport or regional aviation in general.

I am sick of the airport being used as a political football. It is time for grown-up politics. I want to see the airport work with the public sector, but I think we should support the owner in its plan and not seek to undermine it. I would say to the Mayor for Tees Valley: draw a line under any idea of nationalising the airport—as I have said, public ownership is not a panacea—and instead work with the Peel Group, become an ambassador for the airport and help us to secure its future. What I have learned in this job, if we really want to do something big for the local area, is not to grandstand, not to promise what cannot be delivered, and not to take the people of Tees Valley and Durham for granted.

I will work with anyone, including the Mayor, to secure the future of Durham Tees Valley airport, but the idea of public ownership is fanciful and I think that the Mayor knows it. He should work with me to help the airport succeed, because I believe that Durham Tees Valley is “flying for the future” and I want the people of Durham and Tees Valley to be a part of that.

[The Minister for Transport Legislation and Maritime (Mr John Hayes)]

It is a great pleasure to serve under your chairmanship, Mr Howarth, and to reply to this important debate. I congratulate the hon. Member for Sedgefield (Phil Wilson) on securing it.

The hon. Gentleman’s enthusiasm for Tees Valley airport and the region as a whole is noted and is worthy. It is an enthusiasm shared, as he said, by the Mayor, who has been a great champion of the economic interests of Tees Valley and in particular of the airport. I will speak more about that in a moment, but I pay great tribute to the Mayor and to his work in that respect. I know that he will work with colleagues, as the hon. Gentleman suggested, of all political persuasions. Such matters extend well beyond a party political divide; they are about doing our best by the local people and continuing to support the local economy.

My own interest in Tees Valley, although I do not come from or represent that part of the world, I suppose began when I was in a previous ministerial job.

[Phil Wilson]

The airport is known as Durham Tees Valley.

[Mr Hayes]

Yes, I know; that was not lost on me. As I said, my own interest in Tees Valley began when I was in an earlier ministerial role and met some of the employers that the hon. Gentleman speaks about, in order to discuss their needs; I think I was the Minister responsible for skills at the time. I am well aware of the contribution that that part of our country makes to the economy as a whole, as well as to the locality. I understand the dynamism present there and the connections to other places and other countries—the international aspect that he reprised in his speech. Of course, central to all that are good communications and good infrastructure, the ability of both people and goods to travel to and from that place.

The hon. Gentleman is right to say that in that context the decline in services at Durham Tees Valley airport in recent years is a matter of regret. There is no doubt about that, as he said. I have the opportunity, therefore, to respond on the Government’s behalf to the wider points that the hon. Gentleman made about regional airports, because he mentioned that the issue is not wholly about Durham Tees Valley airport but about regional airports and their relationship to our aviation strategy. I want to say a few words about that at the outset and come back to the specifics that he mentioned.

Transport in the North

Phil Wilson Excerpts

Monday 6th November 2017 Commons Chamber

[Ian Mearns (Gateshead) (Lab)]

I thank my hon. Friend the Member for Kingston upon Hull North (Diana Johnson) for securing the debate through the Backbench Business Committee. She made a very good presentation. I must also declare an interest, as chair of the all-party parliamentary rail in the north group.

The north-east has a very well-established urban transport system, one of the largest in the United Kingdom, in the Tyne and Wear metro, but it is nearly 40 years old, and much of the rolling stock is up to 37 years old. The trains are increasingly failing, suffering mechanical and electronic faults that cause misery for commuters and the travelling public in general. The rolling stock is well past its best, and requires urgent replacement. The latest estimates suggest that if a replacement programme has not been introduced by 2020, a system that is already literally grinding to a halt could actually collapse.

Along with my colleagues in the Tyne and Wear area, I wrote to the Secretary of State calling for a sensible solution to the problem of funding a replacement. We called on the Government to invest directly in the scheme, as opposed to other funding initiatives such as the private finance initiative. We wrote to the Secretary of State on 17 July 2017 and again on 12 September, and I raised the fact that we had received no answer during Transport questions on 19 October. We have still not received a reply. I fear that that is a symptom of the Government’s attitude to investment in the north-east, and to its people.

[Phil Wilson (Sedgefield) (Lab)]

The replacement of the rolling stock could provide another boost for the economy of the north-east. It could be built in Newton Aycliffe, which would create many more jobs in the area.

[Ian Mearns]

I would welcome more jobs for the north-east, which was the industrial home of the railways in ancient times.

At present, the people of Tyne and Wear and their parliamentary representatives are being treated with complete contempt by the Government, who have failed to answer a letter from 10 Members of Parliament after more than 120 days. [Interruption.] Conservative Members would not accept that. May I ask you, Madam Deputy Speaker, whether it is normal parliamentary procedure for a letter to a Secretary of State, signed by 10 MPs, to be completely ignored for more than 120 days? I am still waiting.

The latest figures from the Treasury show that investment in infrastructure in the north-east is the second lowest in the UK, the lowest being in Northern Ireland. As we know, Northern Ireland has a financial benefit with which it can do something that will be determined for and by itself. Between 2011 and 2016, investment in the north-east was very low by comparison with the national average, and very low indeed by comparison with investment in London and the south-east. London enjoyed £30 billion of investment, and London and the south-east benefited from nearly 50% of all infrastructure investment.

In the north-east, our commuters regularly endure journeys of less than 15 miles that take more than an hour. The recently completed road-widening scheme on the A1 around the Metro Centre in my constituency has done little to ease that. Another scheme to widen the stretch of A1 alongside the neighbouring constituency has already been delayed until late 2020 in favour of investment elsewhere. Given such a disparity in spending between mine and other regions, my question must be this: why can we not have some investment for the north? “Fair funding” for us would not be fair, because it would not come to terms with that historical lag—the historical disparity that has left us in the doldrums.

The road network in the north-east, and the network that links it with other northern English regions and with Scotland, is beyond a joke. As has already been mentioned, the A1, the A19, the A66 and the A69 all suffer congestion and low travel speeds. The A1 around my constituency and to the west of Newcastle is one of the most heavily congested roads in the country, and the A1M which runs south from Gateshead to Scotch Corner—a distance of less than 40 miles—is motorway in name only. It often takes more than an hour to travel 40 miles on something that is designated a motorway. It is all too often dangerous, as is the A1 North link between Tyneside and Scotland.

Our internal regional railways are antiquated, uncomfortable and painfully slow. The region that gave this nation its railways is being left behind: that is beyond dispute. The right hon. Member for Derbyshire Dales (Sir Patrick McLoughlin) stood at the Dispatch Box and told us that by 2035, HS2 would cut journey times from London to Newcastle via Leeds by 20 minutes. Twenty years ago we could travel by train from Newcastle to London in two hours and 38 minutes, and in 20 years’ time, with HS2, the journey will be 20 minutes faster. So 40 years will have elapsed, we will have spent £56 billion, and we will have saved 20 minutes on the journey time from Newcastle to London. This will increase capacity, but it will do nothing for the economy of the north-east until we get the north-east’s transport infrastructure improved dramatically. We are being ignored.

--- Later in debate ---

[Phil Wilson (Sedgefield) (Lab)]

There is obviously a big issue with the disparity between the investment in the transport infrastructure in the north-east of England and the investment elsewhere. We have bus networks that are dislocated, and in rural areas probably non-existent. The road networks are congested and the rail network is neglected. The Institute for Public Policy Research says that half of planned transport spending will go to London, with the north receiving £427 per person, compared with nearly £2,000 per person in London. In fact, over the past five years transport expenditure in the north-east was £3.1 billion, while in London it was £30 billion—in the north-east it is only a tenth of what it is in London.

On the road network, the two main north to south roads through the north-east are the A1, which goes through the centre of Sedgefield, and the A19. The upgrade of the A1 stops at Scotch Corner. It seems as if that upgrade has been going on for years—anyone just has to travel on that road to feel it. Ironically, the A19 is the most congested road. We desperately need a new A19 crossing over the River Tees. Councillor Bill Dixon, leader of Darlington Borough Council and Chair of the Transport Committee for the Tees Valley combined authority, said that, for far too long, residents of Tees Valley have suffered frustration and delays because our major roads are not equipped to deal with the volume of traffic. The A19 crossing is necessary.

There is also a need for a relief road, which is mentioned in the combined authority’s plans, at junction 60 on the A1, just outside Newton Aycliffe, home to the biggest industrial estate, down to Great Burdon on the A66 to give further access to Teesport. Companies such as Stiller, the road haulier company, say that there is a need for such access. It means that the road would cut past the small village of Brafferton. Any change that takes place must be done sensitively, with the views of the local people taken into consideration.

[Jenny Chapman (Darlington) (Lab)]

May I take the opportunity to congratulate my hon. Friend on his speech and to mention another reason for needing the road? The residents of Darlington have suffered large vehicles going very close to their homes, with big impacts on road safety and air quality.

[Phil Wilson]

Yes, I know that from going down North Road to the railway station to get to London. It takes a long time to get down there, so the congestion must be relieved.

On the railway infrastructure, there has been talk about the Leamside line, which runs down to Tursdale, just north of Ferryhill, which is in my constituency. There has been talk of refurbishing that line for decades now. I remember it being discussed back in the 1980s. To refurbish that route would alleviate a lot of pressure on the east coast main line, and help to ensure that commuters can get from the Tyne to the Tees, and vice versa. It could also lead to the reopening of a station at Ferryhill, which closed many years ago and which commuters could use to get to both the Tyne and the Tees. It would also help the local economy in Ferryhill.

Hitachi, the rail builders, are in my constituency. Although HS2 is a controversial project, Hitachi has been shortlisted to build the rolling stock, which is a £2 billion-plus contract and will create a lot of jobs for the local area. That is important for the north-east and we should not forget it. The actual factory has brought train building full circle. Locomotion No.1 was assembled there back in 1825, and the company is now building the bimodal trains. The Government asked for those trains to be built, because they knew that electrification of the railway would not go forward in the way that we expected.

The last matter I want to mention is Durham Tees Valley Airport, which is also in my constituency. Owned by Peel Airports, it has been through troubled times over the past few years. It only has two routes now: to Schiphol and to Aberdeen. Peel wants to ensure that the airport can be kept open into the future. The newly elected Conservative mayor of Tees Valley says that he wants to nationalise the airport. A few months ago, I asked the Transport Secretary about the plans for nationalising regional airports, and he said that there were not any, which I found interesting as it was the main campaign issue for the Conservative mayor.

Questions need to be asked. If the Minister has had discussions, perhaps he can help us. What kind of nationalisation are we talking about? Is it state-owned nationalisation or a workers’ co-operative? Are we talking about socialism in one airport or is this a Trojan horse? Is it a transitional demand that would lead to the full nationalisation of all the regional airports in the country? We need answers today. Maybe the main thing that should be considered for Durham Tees Valley airport is a third runway at Heathrow. We need investment in the north-east because we have a lot to say but we need the transport infrastructure to spread the news.

Taxi Trade

Phil Wilson Excerpts

Tuesday 18th July 2017 Westminster Hall

[Mohammad Yasin (Bedford) (Lab)]

I have read the report, which is very good. As a former taxi driver, I know how taxi drivers operate and the issues that they face along with passengers. Cross-border hiring is a massive issue. The report says that there has been a 30% reduction of income for drivers in London, but in other areas it is even bigger. A lot of drivers are leaving the trade because other drivers are coming in from other authority areas where following regulations and getting licenses is easy. There should be a cap not only on private hire vehicles—

[Phil Wilson (in the Chair)]

Order. I remind the hon. Gentleman to keep his intervention short and to ask a question, not make a speech.

[Mohammad Yasin]

I am going to do so. I have another meeting to go to, so I have to make the point now. Does my hon. Friend agree that there should be a cap not only on vehicles but on private hire drivers’ licences?

--- Later in debate ---

[Wes Streeting]

I will have to make progress, otherwise I will encroach on the time for other Members to speak. I have talked about the need for taxi and private hire drivers to undergo topographical training, so that they are better drivers and have better skills.

However, my hon. Friend the Member for Bedford—he is no longer in his place; he has another commitment—made a powerful contribution on driver safety, and we really need to look at that, particularly since card payment machines have been put in the back of black taxis. Drivers in my constituency feel more vulnerable than ever if something goes wrong with that machine, because they have to get out of the vehicle to deal with an issue in the back. I have heard stories of drivers being abused or people not paying their fare. Drivers put themselves at risk, and we might want to look at increasing the penalties and sentences for people who abuse taxi drivers in the way we are considering for other public sector workers.

On the future of the taxi trade, it is often said that taxi drivers are not interested in modernisation and are stuck in the past, but I have not found that to be the case. Drivers are keen to drive the new zero emission capable taxis and are excited about the opportunity to reduce polluting emissions from their vehicles. To ensure that they are able to drive them, we hope that the Government will put in place an adequate rapid charging infrastructure to support their use. We also need to make sure that those cabs are affordable. I know that the Government are already looking at grants, as is the Mayor of London, but we also need to look at exemptions from vehicle excise duty. I know that we will have to make that case to the Chancellor and the Treasury, but exemptions would make a real difference to drivers’ ability to take up that challenge.

We also need to have a serious discussion on the fares regime, particularly in London, and the extent to which taxi drivers are heavily disadvantaged by fares, which are often set without adequate consultation with the trade. We also need a discussion about the extent to which competitors—particularly Uber—are able to offer artificially low prices and flood the market with drivers in order to drive their competitors off the road. That affects not just licensed taxi drivers but private hire drivers, including Uber drivers, who have seen their incomes fall in recent years because it is in Uber’s interest to flood London with as many drivers as possible to maximise its revenues, even if that is at the expense of fast journeys and decent pay and conditions for both taxi drivers and private hire drivers. We need to approach this from the point of view of fair competition, rather than the elimination of competition.

Action by Ministers is long overdue. The debate about the future of the taxi trade has often been unfairly characterised as a debate between those who support competition and innovation and those who want to cling to the past. That is a lazy analysis. As I have demonstrated this afternoon, the taxi drivers I represent are not afraid of innovation or competition; increasing numbers of drivers are embracing new platforms such as Gett and mytaxi. Many cab drivers also accepted card payments long before it was mandatory, and a great many more are keen to get behind the wheel of the new generation of carbon neutral, electric-capable taxis to play their part in improving air quality and protecting our environment.

However, the consistent theme I found as a constituency MP during our inquiry was that taxi drivers find it increasingly difficult to compete with both hands tied behind their backs in a changing marketplace. Our challenge now is to make sure that the trade enjoys a bright future as well as a proud history. I strongly believe that, with smart and effective regulation and new national standards, the taxi and private hire industries can succeed. I say to the Minister, who is a good man, that many small businessmen and businesswomen and their families are counting on Ministers to act.

[Phil Wilson (in the Chair)]

I do not intend to put a time limit on speeches at the moment. I think we will fit everybody in, so long as everybody bears in mind that other hon. Members want to speak. I want to bring in the Front-Bench spokespeople at about 3.30 pm.

--- Later in debate ---

[Several hon. Members rose—]

[Phil Wilson (in the Chair)]

Order. I am imposing a four-minute limit on speeches now, because I want to bring in the Front-Bench speakers at half-past 3.

Oral Answers to Questions

Phil Wilson Excerpts

Thursday 30th March 2017 Commons Chamber

[Chris Grayling]

This is clearly a live issue for people living around airports. The airspace modernisation programme will provide additional tools to improve things. I assume the hon. Lady is not asking me to take back powers from the Scottish Government to regulate night flights at Scotland’s airports; were she doing so, she would have to talk to her colleagues in Edinburgh.

[Phil Wilson (Sedgefield) (Lab)]

What plans do the Government have for nationalising regional airports?

[Chris Grayling]

We have no plans to nationalise regional airports. In some cases, local authorities—or, indeed, local authorities in partnership with the private sector—control regional airports, and that is a matter for those local authorities and the current and past owners of those airports. We have no plans to nationalise airports.

HS2 Update

Phil Wilson Excerpts

Tuesday 15th November 2016 Commons Chamber

[Chris Grayling]

I absolutely give my hon. Friend that assurance. I was not aware of the situation that he describes, and the Minister and I will talk to him about how we address it.

[Phil Wilson (Sedgefield) (Lab)]

Hitachi Rail Europe in Newton Aycliffe in my constituency is well placed to manufacture the rolling stock for HS2. It has a long track record of more than 50 years of building high-speed trains, such as the bullet train in the 1960s in Tokyo. Will the Secretary of State outline the procurement timeline in the coming years, and will he tell us when the rolling stock will start to be produced?

[Chris Grayling]

I can start by letting the hon. Gentleman know in advance that I will be visiting the plant in Newton Aycliffe next month. It is a great addition to our manufacturing base, and I look forward to seeing the first trains from that plant operating on our network. The team at Hitachi is doing a great job for us.

I obviously cannot prejudge the outcome of the tender process—it will take place towards the end of this decade—but I am clear that the company that builds the trains for HS2 must leave a skills footprint in this country. We will not simply bring trains in on a ship, with no benefit for engineering skills or apprenticeships in this country. I want a genuine process that will leave behind a skills footprint with regard to not just rolling stock contracts, but the whole contract.

Transport and Local Infrastructure

Phil Wilson Excerpts

Thursday 19th May 2016 Commons Chamber

[Phil Wilson (Sedgefield) (Lab)]

I want to talk about the importance of rail manufacturing, and primarily about the importance of Hitachi to the local economy in my constituency. The Hitachi Rail Europe factory in Newton Aycliffe opened last year and is creating 730 jobs, with many more in the supply chain. The factory is a superb, modern facility. Costing £82 million, it is the largest private sector investment in the north-east of England since Nissan. The factory’s first task is to build the next generation of inter-city trains for the Great Western line, which will begin entering service next year. It will then build trains for the east coast main line from 2018. For those who use the service on a regular basis, that day cannot come too soon. The company has also won contracts for commuter trains in Scotland and on the trans-Pennine route.

Hitachi built the first bullet train in Japan in the 1960s, and I understand it is now on its seventh series of bullet trains. I want to see that technology brought to Britain and manufactured in Newton Aycliffe. Hitachi’s expertise means that it could manufacture the rolling stock for HS2 in Newton Aycliffe if it wins the contract. That would provide a great boost to manufacturing in the north-east and the rest of the UK. I see the 730 jobs that are already to be created as a minimum.

There are other areas of expansion. Hitachi Rail Europe has that name for a simple reason: it sees the UK and the north-east as its launch pad for exporting rolling stock into the European Union. That is one reason why our continued membership of the EU is vital. Hitachi has shown great confidence in UK manufacturing’s capabilities, and I can only endorse its faith in the workforce of Newton Aycliffe and the surrounding area. It has moved its global rail headquarters to London and opened a European rail research centre there, and for one primary reason: because the United Kingdom is part of the European Union. I worry about future investment in the Hitachi plant if we leave the EU.

What I am saying is not meant to be part of some “Project Fear”, but as the MP for Sedgefield, which includes Newton Aycliffe, I feel that it would be irresponsible of me not to express my deeply held worries about the future of Japanese investment if we leave the EU. Those worries find their source in statements made by the chairman of Hitachi, Mr Nakanishi. In an interview with the Financial Times on 12 October 2013, under the headline “Hitachi president warns UK against leaving the EU”, he said that he did not expect the UK to leave the EU, but that if it did,

“I would have to reconsider how to manage our railway business.”

In an article that he wrote for the Financial Times on 11 May this year, Mr Nakanishi stated:

“Britain is the centre for Hitachi’s two largest overseas infrastructure projects, in rail and new nuclear power. We invested in the country as the best base for access to the entire EU market. For our manufacturing and supplies we depend on skills and parts that come from within the UK and from Europe. Take away its EU membership, and the investment case looks very different.”

Some who want to see Britain leave the EU play mischief with major foreign investment and become cavalier with quotes and facts, picking only those that support the argument they wish to promote. For example, Matthew Elliott, the chief executive of Vote Leave, insinuated at the Treasury Committee’s public hearing on 9 May, through selective quoting, that nothing would change with Hitachi if the UK left the EU. The recent and consistent statements of the chair of Hitachi prove that there would be repercussions for further investment in the UK if we left.

As this speech is not part of a so-called “Project Fear”, I will say that if Britain votes to leave the EU on 23 June, it will not mean that the Hitachi factory in my constituency closes on 24 June. However, I am deeply concerned about its ability to generate more jobs and expand in the long term, and therefore to create economic growth both locally and nationally, if it does not have unfettered access to the EU marketplace. In a recent survey that I undertook of businesses in my constituency, more than 50% of respondents said that leaving the EU would have a negative effect on their investment plans for the future.

[Christian Matheson]

Is my hon. Friend aware that I made exactly the same point at a meeting of the all-party aerospace group about a large employer next to my constituency, Airbus? This is not simply about Hitachi, in his constituency; major manufacturers and their suppliers right across the UK have the same fears.

[Phil Wilson]

That is absolutely right. I made the specific point about Hitachi because it is based in my constituency, but it is fair to say that for a lot of foreign investors, our being part of the EU is key to their future plans.

I am disappointed that some Members are prepared to play fast and loose with the facts. The hon. Member for Uxbridge and South Ruislip (Boris Johnson) was recently quoted in the Daily Mail as saying that big businesses

“agree with an open-border immigration policy because it means they don’t, for instance, have to worry too much about us getting local people. They think they can just get a steady supply of unskilled…labour from abroad”.

That is a slur on the good name of good employers such as Hitachi, which built its factory in the north-east because of the local people’s skills and application to their work. Some 95% of Hitachi’s workforce at Newton Aycliffe come from the north-east, and they are skilled and well paid.

Because of its commitment to the local people, Hitachi—along with Gestamp, the major employer in the town, employing 1,300 people—has sponsored a university technical college, built overlooking the Hitachi factory. UTC South Durham will have more than 60 young people passing through its doors once it opens in September, and that number will build up to 600 local teenagers, who will be equipped with the essential skills required for the world of work. That is all possible because of Hitachi, Gestamp and Sunderland University’s belief in local people, but also because we are part of the European Union.

Hitachi has written to its workforce outlining the company’s position on Europe, not to bully but to inform. It is what a responsible employer does. It has made it absolutely clear that the decision on 23 June is one for the British people, but that it would be remiss of it as a responsible employer not to state its position. Some of the text of the email that Hitachi has sent its employees reads:

“Like many other international companies we invested here because of the UK’s strong economic fundamentals and rich access to talent. We are also in the UK in order to have access to the entire EU and European market. In particular for our manufacturing and supplies we depend on skills and parts which come from within the UK and Europe at large.

We can understand that the EU is not perfect but the UK’s departure from the EU would create huge uncertainty for all Hitachi businesses in the UK in terms of economics, trade, skills and talent, and would affect the stability that the company needs for continued investment and long-term growth.

We also believe that it would have negative impact upon the UK economy and carry significant risks for the remainder of the EU. Therefore we believe that a strong and united Europe with the UK in a single, open market offers the best conditions for Europe’s prosperity, and for Hitachi’s business.”

The matter could not be made clearer.

Like a lot of people, I campaigned long and hard to ensure that the Government went ahead with the deal to bring Hitachi to the north-east, because of the jobs and investment that it would bring. I am not prepared to stand idly by and watch that new inward investment—not just Hitachi, but other major investors—be threatened by our leaving the EU, and that is why I will be campaigning for a remain vote on 23 June.

Davies Commission Report

Phil Wilson Excerpts

Wednesday 1st July 2015 Commons Chamber

[Mr McLoughlin]

I think that I said to my hon. Friend when I was in her constituency a few months ago that that was one of the 50 proposals that was considered by the commission, but it has now been ruled out. What we have today are the three proposals that the commission has endorsed.

[Phil Wilson (Sedgefield) (Lab)]

The Secretary of State quite rightly mentioned Newcastle airport in his list of regional airports in his statement. As he is probably aware, there is another regional airport in the north-east of England, which is Durham Tees Valley airport. Part of the runway runs through the constituency of the hon. Member for Stockton South (James Wharton), the Minister with responsibility for the northern powerhouse. It is imperative that we have connectivity to Heathrow. We have it with Schiphol, but there are not so many destinations from there as there are from Heathrow. We really need a quick and positive decision on this matter to ensure that the economy in the north-east grows in the future.

[Mr McLoughlin]

It would have been wrong of me to try to read out every single airport in the country that would want such connectivity, and I apologise to the hon. Gentleman for not mentioning his airport. I have tried not to call these airports regional airports: they are airports that serve their local communities incredibly well.

Transport (Tees Valley)

Phil Wilson Excerpts

Tuesday 10th February 2015 Commons Chamber

[Mr Hayes]

I suggest that the hon. Gentleman apply for an Adjournment debate on just that issue, so that we can explore it in the depth that it deserves. As the Minister responsible, I should be delighted to respond to such a debate.

The roads investment plan also reflects the conclusions of the six feasibility studies announced in June 2013, which examined the case for improvements on the A1 and in other key national corridors.

In the time available to me, I shall depart from my script in order to deal specifically with some of the points made by the hon. Member for Middlesbrough, and, hopefully, give him good news. I share his view of the work that is being done on the Victorian cloisters at Middlesbrough station, and I will ensure that we pursue Network Rail so that the matter is dealt with speedily. Indeed, I will go further than that. The hon. Gentleman spoke about the roof which was destroyed in 1942. I wonder if we might consider the feasibility of doing something about that too, in the longer term.

I agree with the hon. Gentleman that a seat at the “Transport for the North” table for his area would be appropriate. He makes a persuasive case. I shall need to take it up with the Secretary of State, but I know that he is sympathetic to it, and I think that we should go ahead with it speedily. I also think that the hon. Gentleman is right about direct services to Middlesbrough, and I do not see why we should not consider the further improvements that he suggests as soon as the Government’s improvements to the east coast main line—on which I enjoy the privilege of travelling very frequently—have been completed.

[Phil Wilson (Sedgefield) (Lab)]

Will the Minister give way?

[Mr Hayes]

I hope that the hon. Gentleman will forgive me if I do not. I am very short of time.

The hon. Member for Middlesbrough also made a persuasive case about rolling stock, and I shall be happy to look at that as well. As he will appreciate, such matters need to be considered in the round, but I agree with him that people deserve a chance to travel on trains that are fit for purpose.

Generosity has taken hold of me. I will give way to the hon. Member for Sedgefield (Phil Wilson) after all.

[Phil Wilson]

I am grateful to the Minister. I wonder whether he will raise with his Treasury colleagues an aspect of air passenger duty which affects Durham Tees Valley airport and the other airport in the north-east, namely its devolution to Edinburgh. It would be very beneficial if the Government gave some thought to what could be done to ensure that there is no loss to the regional airports in the north-east.

[Mr Hayes]

As you know, Madam Deputy Speaker, the breadth of my grasp and the length of my vision know few bounds, but we have no time to explore that issue in detail this evening.

The hon. Member for Middlesbrough made some important points about buses. As he will know, bus travel is dear to my heart. He advanced the interesting argument that no adequate public transport was available to provide access to health services, and to hospitals in particular. Again, I share his view. The situation is similar in my own constituency, where bus services serving the new Johnson community hospital have been restricted. I am fighting a similar campaign in my constituency, and I think we should look closely at this. It seems to me to be important that particularly the sick and vulnerable should be able to get to those services readily and easily and affordably, and the relatives and people who care for them and want to visit them, too.

Those are all areas where I think we can make progress. We can do so on the basis that the hon. Gentleman brought these matters to the attention of the House this evening and, as he will know, we can only do so because this Government have created an economic turnaround. Through our long-term economic plan, we are creating sufficient resource to be able to look at all these matters. Were it not for the determination shown by the Government not only to think strategically about transport in respect of rail, buses and roads in the ways I have outlined, but to do so on the basis of a credible, rational long-term economic plan, none of what the hon. Gentleman has asked for, or I—I hope reasonably, moderately, in a non-partisan way—have agreed would be possible.

Question put and agreed to.