Oral Answers to Questions

Phil Wilson Excerpts

Thursday 8th May 2014 Commons Chamber

[Mr McLoughlin]

The Chairman of the Select Committee on Transport makes an important point about the commitment the Government are making to electrification. I will not remind her of the figures on electrification over the 13 years that her party were in government—it was some 10 miles, I think. We are planning to do 880 miles in this programme of rail electrification and modernisation, and she is absolutely right to say that we have got to make sure we get the rolling stock in line and in order as well.

[Phil Wilson (Sedgefield) (Lab)]

Does the Secretary of State agree that there is great potential for the rolling stock for High Speed 2 to be built by Hitachi in my constituency in the north-east of the England, creating hundreds of direct jobs and thousands in the supply chain, and is he aware that Hitachi built the original bullet train almost 50 years ago?

[Mr McLoughlin]

I am indeed aware of what Hitachi is doing in the north-east and I very much welcome the Hitachi foreign investment into the north-east and its decision to base its world headquarters here in London. It is a great sign of confidence in the way that the Government are attracting inward investment into this country. Of course the hon. Gentleman is right about the investment opportunities that HS2 offers, not just in terms of rolling stock but right across the whole railway piece. There will of course be a competition and I have no doubt that it will be matched by Bombardier and other companies.

Oral Answers to Questions

Phil Wilson Excerpts

Thursday 20th March 2014 Commons Chamber

[Mr McLoughlin]

I listen to the Institute of Directors, and I also listen to the CBI, which supports HS2, and to the British Chambers of Commerce, which has written to the Prime Minister about it. I also listen to the local authority leaders, who are united in their view that HS2 is the right thing to do to close the north-south divide in this country and provide the north with the type of rail services that it deserves. I would also point out that we have had significant investment in London transport, and it is about time that the rest of the country got some of the investment as well.

[Phil Wilson (Sedgefield) (Lab)]

May I join the Secretary of State in welcoming Hitachi’s announcement that it is moving its global rail operation to the UK? That will create a lot of jobs in my constituency. Will he acknowledge two things, however? The first is that Hitachi had identified Newton Aycliffe as its manufacturing base before the last election because of Labour’s intercity express programme, and the second is that it has moved here also because we are in Europe, and it would be a disaster to leave the European Union.

[Mr McLoughlin]

One reason why this country has been so successful in getting inward investment is the long-term market changes that we have made in the United Kingdom, which were started by Baroness Thatcher. I well remember when Toyota came to this country, which was the largest single investment ever made here at more than £800 million. I also remember when Nissan came here. I very much welcome Hitachi, but it follows a number of other Japanese companies in coming to this country, investing in it, providing good, long-term employment and doing very well for the United Kingdom.

Oral Answers to Questions

Phil Wilson Excerpts

Thursday 6th February 2014 Commons Chamber

[Mr Goodwill]

The Government are transforming rail travel for passengers across the north and are investing heavily in the electrification of the network and in the £500 million northern hub capacity scheme. In parallel with that new commitment, we announced the establishment of a joint taskforce to explore where to go next with electrification in the north. The taskforce has been asked to ensure that eight named routes are considered, but it is free to consider the case for any route in the north, including the Caldervale line.

[Phil Wilson (Sedgefield) (Lab)]

Although, obviously, I am disappointed that Hitachi was not successful in winning the Crossrail bid, I am pleased for the people of Derby and think that it is good news for British jobs. I am sure that the House is aware that although all the bidders are foreign-owned, two are based in the UK: Hitachi in Newton Aycliffe in my constituency and Bombardier in Derby. Will the Secretary of State tell the House what processes are in place to ensure that the winning bidder will fulfil its contractual obligations?

[Mr McLoughlin]

As the hon. Gentleman will know, because he was very much involved when Hitachi won the intercity express programme order, there is a standstill period of an extra 10 days. What I announced along with the Mayor of London this morning was the preferred bidder. That process has to be gone through and it is right that it should be gone through. It all goes to show that Hitachi is investing in the hon. Gentleman’s constituency. I was up there a few weeks ago, and Hitachi has a huge order and is determined to win more, not only in the United Kingdom but across Europe.

Transport Infrastructure

Phil Wilson Excerpts

Tuesday 17th December 2013 Commons Chamber

[Mr McLoughlin]

I know my hon. Friend’s views on this matter, and I know that he fights passionately on behalf of his constituents. However, I think it right for us to try to obtain an answer that is, as far as possible, based on good evidence and good research. That is what the commission is doing, and it will report by the summer of 2015.

[Phil Wilson (Sedgefield) (Lab)]

According to the Davies report, London continues to accommodate the largest overseas destination market in the world. What more can be done to enable regional airports such as Durham Tees Valley airport, which is in my constituency, to have access to that market by ensuring that it is given Heathrow slots sooner rather than later? May I also ask the Secretary of State to discuss with his colleagues in the Treasury the possibility of varying the levels of air passenger duty around the country, which would help all United Kingdom airports?

[Mr McLoughlin]

I think that the biggest increases in APD occurred under the last Government rather than this one. At a time when we are trying to reduce the deficit, it is always easy to find ways of making cuts, but we must then find a replacement for that certain income. As for the hon. Gentleman’s question about regional airports, I remind him of what I said a few moments ago about their importance to local communities.

Oral Answers to Questions

Phil Wilson Excerpts

Thursday 7th November 2013 Commons Chamber

[The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)]

I congratulate those who put a considerable amount of work and effort into unifying the stakeholders in East Anglia and producing that excellent document. It contains a huge number of recommendations. I will continue to engage with MPs and others to ensure that we complete the process, that their voices are heard and that we understand the benefits of the recommendations.

[Phil Wilson (Sedgefield) (Lab)]

The A67, which runs through my constituency between Darlington and Barnard Castle, is a major bus route. It recently suffered from a major landslip at Carlbury banks, which is severely disrupting bus services. Will a Minister meet my hon. Friends the Members for Bishop Auckland (Helen Goodman) and for Darlington (Jenny Chapman) and me to see whether any funding can be made available from the pinch-point fund?

[Mr McLoughlin]

I was in the hon. Gentleman’s constituency last Friday for the start of work on the new Hitachi site, which will build new trains for the east coast and Great Western lines. I am sorry to hear about the problems that he is having with part of his highways network. We will be happy to talk to him in due course.

High Speed Rail (Preparation) Bill

Phil Wilson Excerpts

Thursday 31st October 2013 Commons Chamber

[Phil Wilson (Sedgefield) (Lab)]

Sedgefield has a particular place in the history of railways, as it was in a place in Sedgefield, Heighington crossing, that Locomotion No.1 was assembled by George Stephenson in 1825, on its route to Darlington to open up the Darlington and Stockton railway. It was said at the time that such was the velocity that in some parts the speed was frequently 12 mph, but it still took 65 minutes to travel the eight and a half miles to Darlington from Heighington crossing. Obviously we have come on a long way since then, but there is still a long way to go, which is why I support the Bill.

I wish to talk a little about supply chains and how this project will have an impact on jobs. Hitachi is opening a factory in my constituency which is going to build the intercity express programme trains, and the Secretary of State is coming to the constituency tomorrow to celebrate the start of construction there. That is just one example of what impact this will have on factories in areas that, in the first instance, are not affected by high-speed rail, because the route will not be going through the north-east initially. We are talking about 730 jobs, with 3,000 to 5,000 jobs in the supply chain. We also have a new university technology college opening. Hitachi and other companies in Newton Aycliffe are in negotiations with Sunderland university to open the UTC. It will create a plethora of people who are interested in engineering, electronics and all the other kinds of apprenticeships that we require to continue the work and the factory going forward. In addition, the research and development facility for trains for Hitachi will be based in Newton Aycliffe.

We should not forget that Hitachi built the bullet train in Japan, so if Hitachi is lucky enough to win the contract, it will have the technology to build the trains in this country. These trains would not be imported; they could be built in this country. That would mean 3,200 permanent jobs, not necessarily at Newton Aycliffe, but around the country, and jobs to maintain the trains as well. The capacity for the supply chain is fantastic.

The system of high-speed rail in Japan—the Shinkansen —covers 1,500 miles. The first high-speed rail started there in 1964, and Japan is on its eighth generation of high-speed train. The average delay on these trains is 36 seconds. I want a bit of that for the UK.

Oral Answers to Questions

Phil Wilson Excerpts

Thursday 27th June 2013 Commons Chamber

[Mr McLoughlin]

Huge investments are being made in the east coast and, indeed, a number of other railway lines. Our package of rail investments between 2014 and 2019 will lead to the largest-ever electrification on our railways. The Chancellor confirmed that and further investment in the railways yesterday.

[Phil Wilson (Sedgefield) (Lab)]

I refer the House to my entry in the Register of Members’ Financial Interests.

I support the HS2 project, but because that network will not extend to the north-east of England, there will still be a need for investment in the east coast main line. One option, under the intercity express programme, is the building of a further 270 carriages at the Hitachi factory in Newton Aycliffe. Will the Secretary of State agree to that? It would constitute an investment in sustainable jobs, and an investment in the long and proud tradition of train building in the United Kingdom.

[Mr McLoughlin]

I welcome Hitachi’s investment at the Newton Aycliffe site, following a £4.9 billion contract that it has already won for refurbishment of IEP trains. The Department is currently considering other proposals. Huge investment is being made in all our railways, partly as a result of the huge increase in the number of people who use them.

Cost of Living

Phil Wilson Excerpts

Wednesday 16th May 2012 Commons Chamber

[Phil Wilson (Sedgefield) (Lab)]

I want to address the transport rather than the energy aspect of today’s debate, and raise three issues that affect my constituency: the local airport, the big Hitachi investment, and the state of rural bus services not just in Sedgefield but throughout County Durham, including Darlington.

As local people know, Durham Tees Valley airport has gone through difficult times in the past few years, especially recently. Just three or four years ago, some 1 million passengers used the terminal. That figure has gone down significantly recently, but at an engagement at the airport a couple of weeks ago, it was good to see KLM making everybody aware of its ongoing commitment to the airport. Hopefully, at some point it will put some more routes on, or use the airport more often than it currently does.

I want to discuss the long-term sustainability of regional airports—I am pleased that the aviation Minister, the right hon. Member for Chipping Barnet (Mrs Villiers), is in her place, and that she has agreed to a meeting next week—and air passenger duty. The latter is critical to the aviation industry in more ways than one, and to the passengers who have to pay it. It has gone up by twice the rate of inflation in the Budget. The aviation industry has told me that we need to look at regional variation of the APD. That does not mean varying it region by region, but having one rate for the south-east, where there is a lot of passenger congestion, and another for the rest of the country. Some would say, especially the Scottish National party, that we should devolve this matter to each of the devolved Administrations—Scotland and Wales, for example—but that is not the way forward. Devolving it to Scotland would impact on Durham Tees Valley airport and Newcastle airport. We need to gain the evidence for our approach. I am meeting a Treasury Minister on 18 June, along with my hon. Friend the Member for Newcastle upon Tyne North (Catherine McKinnell), to discuss this matter and try to get an evidence base pulled together, so that we can say that having regional variation in air passenger duty will work.

I also wish to discuss Hitachi, which I always mention when I can because it provides a massive boost to the north-east economy; it is providing the biggest private sector investment in the north-east since Nissan. Hitachi is going to build a £90 million factory—a train-building facility—in my constituency at Newton Aycliffe. The company is going to refurbish the rolling stock for the east coast main line and for the great western line into Wales. Hitachi is going to create 500 jobs, with thousands in the supply chain. This will be one of the most exciting industrial stories that we have in the north-east of England. I congratulate the Government on making the right decision on it and I pay tribute to the previous Labour Government, whose idea it was in the first place.

The big issue I want to talk about, which is really affecting not only my area but all rural areas, is the state of rural bus services. The Sedgefield constituency covers about 150 square miles and contains about 30 to 40 towns and villages, some of which are very small. Brafferton, for example, has a population of only about 200, whereas Newton Aycliffe has a population of 20,000-odd. There is a lack of rural bus services and subsidies that have gone to local authorities have been cut. The subsidies are then withdrawn from bus companies such as Arriva, the big one in our area, and if they do not get the subsidies, the bus does not run. Sometimes that happens without the local people having been consulted, so they find that their bus does not turn up at their bus stop because the service has been pulled off the road and nobody has bothered to tell them.

The situation is creating problems in the area. For example, people are having difficulty getting to work. We have actually had to write to the local jobcentre and the Employment Minister to say, “If someone cannot get to work any more and they pack in their job, what does that mean for their benefits? It is not their fault that they have had to resign their job, so will they still not get benefits for six months?” I have been told that this would be looked at on a case-by-case basis, but the local jobcentre has pointed out to me that it has actually considered buying bicycles to get people to work because of the state of the local bus services. It seems to me that we are going back not to Victorian times but to mediaeval times in respect of the state of transport in the area. A sophisticated society such as ours must be able to put on adequate bus services for people.

[Gloria De Piero (Ashfield) (Lab)]

I, too, represent a semi-rural constituency, where bus services, and school buses in particular, are becoming a real issue. Just last week, a mum contacted me about the removal of the school bus in Bagthorpe. Getting children to school is not a luxury; it is a necessity. Should not Ministers take that on board?

[Phil Wilson]

Ministers do need to take that on board, because the state of bus services is not just an issue about people getting to work, getting to see their family or getting to medical appointments; it is also an issue for schoolchildren and their parents.

[Pat Glass (North West Durham) (Lab)]

This issue is having an impact on every rural and semi-rural constituency across this country and it is having an impact on our future. Young people are now telling me that they are choosing courses on the basis of where they can get to, not on the basis of what the right course is for them or for the future economy of this country.

--- Later in debate ---

[Phil Wilson]

These are all issues to address. Ultimately, they are not just about bus services; they come down to the effect on society in rural areas. People living in rural areas should have the same rights as those who live in urban areas, which on many occasions have adequate transport facilities.

I wish to discuss one or two villages in my area. Hurworth, Sadberge and Brafferton are all in the Darlington borough, and my hon. Friend the Member for Darlington (Mrs Chapman), who is in her place, wishes to discuss these same issues, as they are affecting our communities in that borough. For example, Sadberge has lost its shop, its post office and its school, and from the end of the year it will lose its bus service, too. At a surgery there two or three weeks ago, I was told by a disabled person who works at Lingfield Point in Darlington, “If that bus route is withdrawn, I do not know how I am going to get to work, unless I hire a taxi.” We all know that going by taxi is a very expensive way of getting to and from anywhere, never mind just using it to get to work.

Brafferton is, as I have said, a very small community, containing 60 to 70 houses and perhaps 100-odd people. I have been contacted by Mrs Firby, who lives in that village, and I want to read one or two extracts from her letter to explain the state of transport in the area. It says that now the bus has been withdrawn, residents

“must walk to the A167”—

the main road—which is

“much too far for elderly or infirm, or anyone to carry much more than a light bag. There is no shop in the village and the partial footpaths away from the village are poorly maintained.”

The letter goes on to explain that 50% of households have someone over the age of 60, and states:

“More people are becoming reliant on family and friends or a second car when retiring from work and losing easy access to shops.”

In fact, the nearest shop to that village is the motorway garage at the interchange on the A1. Imagine the nearest shop being at the motorway caff and having to go there to get groceries. That shows the issues affecting our local villages and the stark contrast of the situation in those areas.

Darlington council, because of the cuts it is facing, has had to take some really difficult decisions about subsidies to buses and how it will deal with adult care. Because of the cuts, it will not be able to continue giving subsidies to bus companies, especially at the end of this year. What it is able to do—there are particular grants for doing this—is set up community transport systems. It does not want to run the systems itself but wants a third party to do it. It is currently consulting with local parish councils and others to find a way of doing that. I am pleased about that and I and my hon. Friend the Member for Darlington will help and support the council in its efforts in that regard.

The report of the Select Committee on Transport on its financial scrutiny of the Department for the 2010-12 Session says that £500 million was handed back to the Treasury. It says at page 8, paragraph 10, that that money is

“likely to have exceeded the total reduction in annual revenue for the English bus industry following the Spending Review.”

The report goes on to say:

“Money voted by Parliament for expenditure on transport should be spent on transport, not handed back to the Treasury.”

We have all these constituents facing these cuts and having difficulties getting to work. We have elderly people having to walk a mile and go to a motorway caff and back to get groceries, but this £500 million was sent back to the Treasury. I think some questions need to be asked about that.

[Mrs Moon]

The Bridgend Coalition of Disabled People recently held a transport summit at which they pulled local bus and taxi companies and train operators together to talk about how disabled people can access transport. Increasingly, moving around is expensive and difficult for disabled people and requires prior planning. That money could have been spent on facilitating access to transport for disabled people. Does my hon. Friend agree that it is bad that that money was sent back to the Treasury?

[Phil Wilson]

That amount—£500 million—is not a drop in the ocean. It is a lot of money that could have done a lot of good for transport throughout our rural areas. I hope that Ministers will address this issue in winding up tonight.

Finally, let me make one or two other comments. Arriva runs bus services in County Durham, where a lot of those services have a bad name. With Arriva buses in London, if you see one, you see three at a bus stop, but in some of the villages we represent, people are lucky if they see one all day. Obviously bus companies need to make a profit to invest in better buses and so on, but the private sector also relies a lot on subsidy. Those companies have a right to make a profit but, given that they are providing a social service, they should have some kind of social conscience.

For me, this issue highlights elements of all the talk about the big society. People cannot get to work or see their friends.

[Jake Berry]

It is interesting to hear the hon. Gentleman talking about the cuts at Darlington council. All of us in politics accept that in tough financial times, we have to take decisions about how we serve our constituents, but why has Darlington council chosen to cut the bus subsidy when in March 2011, on its own admission, it had more than £10 million in cash reserves?

[Phil Wilson]

Those are figures we do not recognise, but—[Laughter.] Let me answer the question. Tough decisions have to be made, but they are even harder when the amount of money given to local authorities is being cut drastically.

[Mrs Jenny Chapman (Darlington) (Lab)]

Darlington borough council has had £100,000 withdrawn from its bus operating grant and has made some very difficult decisions on adult social care. It has a responsible reserves policy. It is a sensible council, which shares a lot of its back office functions with neighbouring authorities. It is a low taxing council; we have the lowest council tax in the north-east. It is a well run council and there is not a lot of fat. These decisions are being taken—

--- Later in debate ---

[Mr Deputy Speaker]

Order. I think the hon. Lady should give up now.

[Phil Wilson]

I thank my hon. Friend for clearing up some of the issues. There certainly are choices, but if grants and subsidies are being cut, the difficult decisions that have to be made are even harder. It is not just that the council has to take those difficult decisions, but that particular things have been thrust upon it.

The whole situation undermines the big society. There is a lot of hot air and a lot of big words, but what is actually happening is that people are suffering at the grass roots.

[Several hon. Members]

rose—

--- Later in debate ---

[Stephen Phillips]

They certainly apply in such areas to some extent. I do not dissent from that proposition. However, the hon. Lady needs to know the direction in which I am going. Because our constituents—including hers—are so affected by this issue, it is an issue on which the Government should take what action they can take. We are debating the cost of living, and one of the principal costs for those who live in the rural areas in her constituency and in rural areas such as the ones that I represent is the cost of fuel. The Government have tackled that. My right hon. Friend the Chancellor has scrapped £4 billion in duty increases that were planned by the last Government. The Opposition do not like to hear this, but the truth is that the price of petrol at the pumps is 10p a litre cheaper than it would have been if the Labour party had won the last election.

Is there more that could be done to deal with the cost of living? Of course, but Opposition Members also need to remember the huge debt bill—£120 million a day—with which the country has been left. If we were not paying that bill, my right hon. Friend the Chancellor and the other Treasury Ministers would have far more scope to tackle this and other aspects of the cost of living. We have heard Opposition Members criticise the Government today, but they need to remember who was responsible for getting this country into the mess in which we find ourselves.

[Phil Wilson]

I remind the hon. Gentleman that we are in a double-dip recession, and that when we left power, growth was increasing and unemployment was coming down. Until 2008, before the crisis, the Tories were supporting our public expenditure plans pound for pound.

[Stephen Phillips]

The hon. Gentleman and his Opposition colleagues are very keen on saying that this double-dip recession is a recession made in Downing street, and they are absolutely right—it was made in No. 11 Downing street under the last Government, and then made in No. 10 when the previous Prime Minister finally made his transition from No. 11. The truth of the matter is that we need not only an apology but a bit of humility from the Opposition. It is they who got us into this mess.

I would desperately like to see more action on the cost of living, and specifically fuel pricing, from this Government, but I know, as I have had to tell many of my constituents, that it is simply not possible because of the mess with which we have been left.

That is the first aspect of the cost of living that principally affects my constituents, but there are of course others, including the other great cost associated with ordinary living: energy. The Government have taken action on this through their agreement with the suppliers, as we know, but again there is more that can be done. I am enormously heartened by not only the measures the Government have taken, but those in the Queen’s Speech that will be brought before the House in due course. The truth is that we face a great problem with energy security and the cost of energy as the developing countries across the world become richer. We need to reduce the reliance on fossil fuels that we have had for the last 50 years.

However, there is a related issue that affects constituencies such as mine and that of my hon. Friend the Member for Rossendale and Darwen (Jake Berry), who spoke earlier: the impact of onshore wind power on rural areas. He may have 30 planning applications outstanding for wind turbines in his constituency; I suspect I have a similar number. The great problem with onshore wind, which the Government will have to grapple with, is that it seems universally to attract no support whatsoever from the communities where the siting of such wind farms is proposed. Some of these very large structures—including in my own constituency—over-top the spire of Lincoln cathedral to a considerable degree. These things are generally not wanted and are uneconomic, to the extent that the subsidy is removed.

The Government will have to look at this issue. Yes, man-made climate change is important, and this generation will have to grapple with it if we are going to live responsibly and hand a decent United Kingdom to our children. However, the problem the Government face—notwithstanding the Localism Act 2011 and everything that was done in the last Session—is that there is no national framework within which wind power is planned. I want to hear from Ministers that that will shift, either in this Session or in other Sessions during the remainder of this Parliament.

The third issue I want to talk about is the cost of food. Government and Opposition Members have spoken about the Government’s plans for a grocery adjudicator. Those who farm in my constituency have too often seen the power of the supermarkets bearing down to such a degree that they have effectively been unable to make a living. That is certainly true of dairy farmers in my constituency, many of whom went out of business long before I became the Member of Parliament. Many farmers in my constituency and other areas of the United Kingdom have been struggling for a number of years. That is why the grocery adjudicator is so important. It is important that we sustain our farming industry in this country, so that we can ensure not only a decent living for our farmers, but future food security. That form of food security will, ultimately, feed through the supply chain and ensure reasonable prices for our constituents. So that is another important aspect of this Queen’s Speech. It is not, as one Opposition Member said, a ragtag Queen’s Speech or a Queen’s Speech full of a ragtag of Bills; it is a Queen’s Speech full of measures that are important to take during this Session and this Parliament to try to rectify some of the damage done to our country between 1997 and 2010.

In today’s debate on the Queen’s Speech we are principally concerned with the cost of living, and I had wished to make contributions on other days on other of the topics that have been debated. I would not wish to find myself ruled out of order, so I shall confine myself to saying that the Government took some brave decisions in the previous Session on foreign policy, and the manner in which the United Kingdom has conducted itself overseas and sought to ensure that democracy is fostered and grows throughout not only the middle east, but the remainder of the world. However, other conflicts that do not find their way into the newspapers and in which civilians are dying are taking place all over the world today. One such conflict is occurring on the borders of South Sudan. I hope that the Minister answering for the Government in this debate will convey my concerns about that and about what is happening in the other areas where humanitarian disasters are occurring, which I know other Government Members and doubtless some Opposition Members share, to my right hon. Friend the Foreign Secretary, notwithstanding the fact that I failed to find my place in yesterday’s debate.

Transport and the Economy

Phil Wilson Excerpts

Tuesday 28th February 2012 Commons Chamber

[Phil Wilson (Sedgefield) (Lab)]

I want to take this opportunity to raise the issue of declining rural bus services, especially in County Durham and in Sedgefield.

County Durham is a rural area and home to many villages, most of which had a colliery at one time. When the collieries were open, people did not have very far to travel, but now that the collieries have closed many people find that they have to travel a long way, and many miles, to get to work, so a reliable public bus service is a necessity.

The bus service is required not only for work, but by young people who want to go to college; by the elderly, who might want to go to hospital or to a medical appointment; by the same groups of people to see friends and family; especially by young people just starting out on their career, who may not have the money to buy a car and need the bus to get to work; and by people on low incomes. We need to think also of the unemployed, who might see a job in the newspaper or in the jobcentre that they would love to do, but who know that they cannot apply for it because there is no bus service to take them to the factory or the office.

Concerns about local bus services have risen up the political agenda not only in areas such as Sedgefield over the past couple of years, but in the rest of County Durham. I have a steady flow of complaints from constituents who are incensed at the cuts to services, especially by Arriva, which pulls services at the last moment, without any notification or consultation. Any cancellation of a route is not well advertised. On more than one occasion, whole villages have been left without any services whatsoever. When I compare the services that Arriva has in County Durham with those that it has in London, I think, yes, we should have an excellent public transport service in the capital city, but we need something equivalent in our rural areas as well, with regulation to ensure that there is a social obligation on privatised bus companies to ensure that people can get to work.

Bus services are being cut in our rural areas as part of the expenditure cuts to address the deficit. There has been a 28% fall in funding for councils, combined with the ending of ring-fencing of grants for bus services, a 20% cut in the bus service operators grant paid to bus companies, and a shake-up of the free travel scheme for pensioners. Pensioners now often say, “What is the point of a bus pass if there are no buses to catch because they have been cancelled?” As a consequence of all these cuts, Durham county council has withdrawn £322,000 in funding from subsidised public transport routes, leaving many villages with few or no services in the evening or at the weekend. My postbag has been full of letters and petitions about the repercussions of the changes brought about by spending cuts originating in Whitehall.

Let me explain what this has meant in practice for people needing these services in the rural communities of Sedgefield—villages such Bishop Middleham and Fishburn, as well as Middleton St George, which is in the south of the constituency. One local constituent can no longer get to work without the help of friends, and others can no longer catch a bus and so have to use a taxi, which obviously inflates the cost of getting to work.

[Mr John Leech (Manchester, Withington) (LD)]

I sympathise with the hon. Gentleman’s constituents who face a problem with bus services, but does he accept that this is not a new phenomenon? Rural bus services have been poor in many areas for a long time, and the previous Labour Government did nothing about reintroducing any sort of regulation in areas such as County Durham.

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[Phil Wilson]

There may have been a lack of regulation, but we had a level of subsidy that had not been cut to the extent that it has been since, and some subsidies that were made available have been paid back to the Treasury.

[Angela Smith]

Does my hon. Friend recognise that the Local Transport Act 2008 brought back a level of regulation, but it was opposed by the Conservative party with which the hon. Member for Manchester, Withington (Mr Leech) is in coalition?

[Phil Wilson]

We can see from the lack of people on the Liberal Democrat Benches that this issue is not of particular importance to them. Whatever they said before the election, they are saying exactly the opposite today.

I have a constituent called Mrs Hardy who lives in Bishop Middleham. She has asthma and a heart complaint and has worked at the same place for 34 years. Now she cannot get a direct route to work and arrives an hour late, and the return journey that she has to make does not take her back to her own home. She is quoted in The Northern Echo as saying:

“I am now in the stressful situation of having to beg lifts from friends, colleagues and family and don’t know how I am going to get to work from one day to the next.”

Her story is not unique. However, with the help of Durham county council, I have been able to get Arriva to put on a couple of buses on workday mornings so that people like Mrs Hardy can get to work. That new regime starts on 19 March. Likewise, by applying pressure on Arriva, we have been able to redirect buses around Fishburn. However, that only partly solves the problem and is not the whole answer. There must be many more employees in my constituency who find themselves in such a position.

I have raised this issue with the Department for Work and Pensions. If somebody resigns from their job voluntarily because they can no longer get to work, they can no longer claim benefit because they are deemed to have resigned. The Minister of State, Department for Work and Pensions, the right hon. Member for Epsom and Ewell (Chris Grayling) responded:

“The Jobseekers Act (1995) provides that JSA will not be paid for a period between 1 week and 26 weeks to anyone who has lost their employment as an employed earner by leaving voluntarily without just cause.

The law does not provide guidance on how just cause should be interpreted because the circumstances in which employees leave employment are so varied.”

The Government need to do a bit of joined-up thinking on this issue because it affects many people in rural areas around the country, who we are perhaps not finding out about. This situation needs urgent attention. The Department for Transport needs to liaise with the DWP to find out the extent of the problem in rural areas. The problems with the buses in my constituency came to a head in the new year.

Last week, we found out from the Transport Committee report on the expenditure of the Department for Transport that the money was there to maintain the subsidy, but it was handed back to the Treasury. To use the Select Committee’s word, how “slack” is that? The Select Committee was surely correct to state in paragraph 11:

“Money voted by Parliament for expenditure on transport should be spent on transport, not handed back to the Treasury.”

My question to the Minister is whether, because the money has been there in the past, it will be there in the future. Will his Department push for extra funding for subsidies so that additional bus services can be provided in areas such as County Durham? There is a lot of talk about the need for growth in the economy. I respectfully suggest to the Government that it is a fundamental prerequisite of any economic growth strategy that employees are able to get to work.

The lack of understanding in this area does not promise much for the future. There seems to have been a fundamental failure in basic arithmetic. The Department has imposed deep cuts to bus grants, leading to the axing of dozens, if not hundreds, of bus routes and to steep fare hikes, only to end up with £543 million to spare. As a consequence, Durham county council and other local authorities are getting the flak for the cut in bus subsidy and the resulting cuts in bus services. My constituents have great difficulties in getting to work, to the hospital, to college or to see friends. The Department for Transport lost £543 million down the back of the sofa, just to find it and hand it back to the Treasury. Will the Minister therefore apologise to Mrs Hardy and the many others who are having difficulty catching a bus today because of his Department’s carelessness?

The letter from the Minister of State, Department for Work and Pensions, the right hon. Member for Epsom and Ewell also states:

“The matter of poor public transport in Sedgefield and County Durham”—

at least the DWP acknowledges that transport in Sedgefield and County Durham is poor—

“is a matter for the Department for Transport. I have forwarded a copy of your letter to that Department so that Ministerial colleagues are aware of your constituents’ concerns.”

Will the Minister tell me what his Department and the DWP are doing to alleviate the situation of poor public transport in places such as Sedgefield and County Durham? Is there any joined-up thinking in Government to alleviate this problem? Finally, what plans does the Department have to re-regulate or regulate more thoroughly bus services in rural areas around the UK so that people who have jobs can get to them?

--- Later in debate ---

[Angela Smith]

I wholly concur. In fact, if we are to maximise the agglomeration benefits of HS2, I would argue that the economies—from the far north to London and the south—that are linked by the HS2 line must have clear strategies in place for economic development in order that the transport investment represented by high-speed rail can perform to its full potential.

[Phil Wilson]

It is obviously vital that the HS2 route eventually reaches the north-east of England. I do not know whether my hon. Friend is aware of it, but Hitachi is building a train-building facility in Newton Aycliffe in my constituency. It has already said that if this project goes ahead, it will be bidding for the rolling stock.

[Angela Smith]

That illustrates my point about the need to have clear plans for economic development in place alongside plans for transport investment.

The report is also important because it points out very clearly that there is a lack of transparency and consistency in the decision-making process at the Department for Transport. Finally, it is important because it points out that the removal of regional structures created by the last Government risks creating a vacuum in effective planning for transport infrastructure.

I want to focus particularly on the report’s recognition that the Government should produce a White Paper explaining explicitly how their plans for transport investment will be linked to their plans for the economy more generally, and in particular explaining their plans for rebalancing the UK economy. Rebalancing is important not just to the economic development of areas such as the north-west and Yorkshire but to the whole country, including London and the greater south-east.

We need transport investment to maximise the potential for a more dynamic set of relationships between economies across the country. HS2 is a case in point. According to The Northern Way, its potential impact of £13 billion would deliver at least £3 billion of economic impact to the north. The point is, however, that its economic impact will affect the whole country, and therefore potentially benefits everyone.

What do we need if we are to rebalance the economy in transport terms? I believe that we need three things. First, we need more transparency and greater consistency in decision making, so that we can hold the Government to account in relation to their stated aim of rebalancing the economy. Secondly, we need political bravery: we need to use investment to maximise economic development in areas such as the north of England, and to remove barriers to growth in those areas. Thirdly, we urgently need to know more about how the Government will develop sub-regional, regional and even cross-regional structures enabling them to produce sound, well-thought-out strategies for the delivery of transport infrastructure.

The removal of the regional development agencies and, by definition, The Northern Way group of RDAs, has left a vacuum in regional planning, especially—as the report points out—in the context of their role in supporting regional economies. Moreover, the local enterprise partnerships have not been thought through. How will these new structures working at sub-regional and city-regional level work structurally across LEP boundaries to deliver what our regions need?

The north of England is a perfect example. As a result of The Northern Way and its superb work in developing arguments and strategies relating to transport, the case for the northern hub has been clearly made and accepted even by the coalition Government. The northern hub is needed, of course, to tackle congestion on the northern rail network, thereby helping to remove barriers to economic growth; but it is also needed in the context of the decision to go ahead with HS2. It is important that we deliver both projects in order not just to reduce congestion on the network but, as I mentioned earlier, to maximise the potential benefit of HS2.

If we are to maximise the potential of HS2 to make the relationship between the economies of the north and London more dynamic, we must also ensure that those agglomeration benefits are spread across the north. If that is to happen, the Government must recognise the importance of transport infrastructure in supporting economic development plans. In particular, they must recognise our great northern cities as hubs for economic development. They must recognise the importance of greater connectivity—not only with London, on a north-south axis, but on an east-west axis, between the northern urban centres, and with international gateways not just at Heathrow and Gatwick but at the mouth of the Humber and Mersey rivers.

We need regional planning. As the report says, without it there will be a risk that choices will be made on a basis that discriminates against weaker economies. There is already an example of that in the form of the Government’s decision to electrify the Leeds-to-Manchester cross-Pennine route, which discriminates against what I call the third point of the golden triangle of the north: the city of Sheffield.

We need the Govt to recognise the broader context of an economic policy that involves stimulation of the economy and the role that transport could play in it. Long-term infrastructure projects should be brought forward, as outlined in Labour's alternative plan for jobs and growth, but instead we are seeing significant cuts in investment, such as the £759 million cut on top of the £528 million efficiency savings supported by Labour.

We also need the Government to recognise the spending disparity between the north and the south. The Passenger Transport Executive Group has produced some interesting figures. In 2010-11, transport spending per head was £774 in London and £276 in Yorkshire and the Humber. The source of those figures is the most recent version of a public expenditure spending analysis from Her Majesty’s Treasury. I ask the Minister to respond to them, and to demonstrate by way of a full written explanation—

--- Later in debate ---

[Lilian Greenwood]

I will not go through all the cuts right at this moment, but I have already said that we would not have cut £759 million from the rail budget—[Interruption.] Well, the Minister has put forward £528 million-worth of savings from the rail industry in his departmental plans, and we would not have opposed that. We would happily find the same efficiencies that he says he would find, such as the £245 million from Crossrail. We certainly agree that where there are efficiencies to be found, they should be found. I could go through his entire departmental budget, but that would detract somewhat from the debate. I am happy to do that another time.

Under Labour, there would not have been a £680 million cut in local transport funding, which is leading to a Beeching-style cull of our bus network. The Campaign for Better Transport estimates that one in five supported bus services have been scrapped. Whole communities have been left isolated, without access to public transport, and fares are rising on those services that remain. Under Labour, three quarters of local authorities would not be reviewing school transport provision, with many families being asked to pay more just to get their children to school. That increasing problem was rightly highlighted by the hon. Member for Staffordshire Moorlands (Karen Bradley) in her wide-ranging speech about the challenges facing her rural constituency. As my knowledge of Staffordshire Moorlands was previously limited to Alton Towers, I now know a lot more about it.

Time and again the Government have chosen policies that have a disproportionate impact on the very people who need their help, particularly in these austere times. My hon. Friend the Member for Sedgefield (Phil Wilson) made that point clearly and passionately. He focused in particular on the impact of bus cuts on villages in his constituency and the real problem that that is creating not only for people seeking work, but for those trying to stay in their jobs. The unemployed, 64% of whom do not have access to a car, need buses to get to interviews and jobs. How can they get back into work if there is no bus or the fare is unaffordable? What about young people, 72% of whom rely on buses to get to college? How can they stay in education or training to get the qualifications they need for the future if there is no bus or the fare is unaffordable?

Labour would be prepared to maintain investment in our much-needed bus services, but it would not be a blank cheque; we want something for something. We would reverse the cut to the bus service operators grant, but in return we would expect the bus companies to work with us to deliver a concessionary fares scheme for 16 to 18-year-olds in education or training. Many people would like to get on their bicycles because it is not only a good way to protect the environment, but a cheap way to get about. We would not only protect the road safety budget, but reallocate funding to improve cycling infrastructure and give people the confidence they need to use their bicycle.

Even for those people who do have access to a car, the situation is little better under this Government. The Chancellor’s decision to increase VAT to 20%, just when global oil prices had taken the cost of filling the tank to record levels, is a real drain on household budgets, especially in rural areas. That is why a temporary cut in VAT back down to 17.5% is a vital part of Labour’s plan for jobs and growth. It would cut the price of a tank of petrol by around £1.35 and put money into people’s pockets.

The Government claim that one of their primary objectives is to rebalance the economy, including by reducing the north-south divide. I am not sure whether Derby considers itself to be in the north—Derbyshire always feels reassuringly like the north to me—but I do not think that the Government’s claims to be rebalancing the economy away from reliance on financial services and towards manufacturing ring true with voters in Derby. The decision to award the Thameslink contract to Siemens, which will build the trains in Germany, is a real kick in the teeth for Bombardier, the only company that designs, manufactures and assembles trains in the UK. That decision put the whole future of UK train manufacturing at risk, along with thousands of highly skilled engineering jobs not only in Derby but across the midlands.

I welcome the Government’s admission that they got that wrong and their decision to amend the tendering process for Crossrail, but why, instead of spending months saying that they could do nothing about the process for Thameslink, did they not act to protect 1,400 jobs at Bombardier? Having delayed the project by a year, Ministers had the time and opportunity to restart the procurement process and ensure that wider socio-economic factors could be taken into consideration. They have proved that today.

In response to the Transport Committee’s call on the Government to explain how their policies will achieve economic growth and tackle regional disparities, the Department cites the example of HS2. There is cross-party consensus that high-speed rail is the right way to deliver greater capacity and reduce journey times between our major cities. By linking to the existing east and west coast main lines, high-speed services will serve cities including not only Manchester, Sheffield and Leeds, but Glasgow, Edinburgh, Newcastle, Liverpool, York and Durham. Once again, however, the Government have missed a trick: why are they legislating only for the first phase of the new high-speed line, from London to Birmingham, when they could have given a real boost to cities in the north by taking the whole Y route forward as one project, opening up the possibility of beginning construction in the north and the south and accelerating the benefits north of Birmingham? I hope that the Minister will respond to the pleas from his hon. Friend the Member for Manchester, Withington (Mr Leech), who asked for faster progress on HS2 to help Manchester and other northern cities.

Labour has offered to work on the same cross-party basis to tackle the urgent need for extra capacity at Britain’s airports. The Government’s failure to set out any strategy for aviation, or even a plan to do so by the end of this Parliament, is putting jobs and growth at risk across the country. Regional airports have an important role to play. The hon. Member for Stockton South (James Wharton) mentioned Durham Tees Valley airport, and I know that my hon. Friend the Member for Sedgefield has led a local campaign on behalf of the airport, so Members on both sides of the House will look forward to the Minister’s response to that call for Government support.

[Phil Wilson]

The campaign in the area is a cross-party campaign. We have already arranged a meeting with the Minister of State on 24 April to discuss the public service obligation and the way forward. One of the reasons why One North East did not apply for a PSO was the cost that involved, and I am concerned about asking the LEP to do that. If One North East did not have the money, I am sure that the LEP will not. I think that we need to be a little more sophisticated in how we raise money to go ahead with this.

[Lilian Greenwood]

I thank my hon. Friend for that clarification. He is quite right that one of the effects of scrapping our regional development agencies has been to make co-ordination more difficult.

The Government’s call for airports to be “better not bigger” is not a policy but a slogan, and the blanket ban on expansion in the south-east makes no sense, but that does not mean any backing down from our commitment to tackle climate change. Any new capacity must go hand in hand with tougher targets to reduce carbon emissions from aviation. I hope that the Minister will take forward that work on a cross-party basis.

Tackling climate change is not just a challenge, but a huge opportunity for British business, so it is deeply disappointing that Ministers have reversed their commitment to support the development of a national public recharging network for lower-emission vehicles, instead leaving the roll-out of recharging infrastructure entirely to the private sector. That is a real missed opportunity when such cars could and should be a growing industry.

Families throughout the country are paying the price for the global financial crisis of four years ago, and whoever was in power would have had to make tough decisions on spending, but that is why it is so important that every penny the Government spend delivers on their overall objectives, and that in turn is why Transport Ministers are failing: they simply do not have a strategy to address needs of the country. Not only are they cutting too far, too fast, but they are making the wrong decisions—the wrong decisions to create the jobs that the economy so desperately needs, the wrong decisions to get people back into work and to support young people in education and training, the wrong decisions to support British businesses, and the wrong decisions to ease the cost of living for hard-working families.

It does not have to be that way. Labour would make tough decisions—we accept that there have to be significant cuts in spending—but we would ensure that all our efforts were focused on getting the economy moving again and on getting people into work. That is the only way to cut the deficit and we would ensure that every penny spent on transport served that purpose.

Civil Aviation Bill

Phil Wilson Excerpts

Monday 30th January 2012 Commons Chamber

[Phil Wilson (Sedgefield) (Lab)]

Aviation makes a major contribution to the UK economy: the industry makes up £19 billion to £20 billion a year of our gross domestic product and employs 600,000 to 700,000 people. My concern tonight, in the context of this Bill, is the future of regional airports and the connectivity they offer between the regions they serve and the rest of the world.

In 1995, Heathrow served 21 domestic destinations and today it serves only six, only two of which are in England. Durham Tees Valley airport in County Durham, which is in my constituency and has part of its runway in the Stockton North and Stockton South constituencies, was once connected to Heathrow, but in February 2009 British Midland International—bmi—withdrew its service. Durham Tees Valley still has a twice daily flight to Schiphol airport in Amsterdam, and Schiphol and Charles de Gaulle airport in Paris now serve more regional airports in the UK than does Heathrow. I understand that bmi withdrew its slots from Durham Tees Valley to Heathrow as it wanted to use them for more lucrative long-haul flights into the capital, but those slots have yet to be filled. Although it might make sense to have the long-haul flights, there is a problem for connectivity between the regions, economic development and the global economy.

BAA bills Heathrow as our global gateway, but that cannot be true if only two regional airports in England have access to the international links through that airport to the rest of the world. The route to Schiphol from Durham Tees Valley is excellent and serves the Tees valley well.

Let me tell hon. Members something about the Tees valley and why it is so important that we maintain the connectivity between the airport and the rest of the world. It has to do with the size of the industry in the area. The economy of the Tees valley is based on the largest integrated process industrial complex in the UK. It contains industries specialising in petrochemicals, energy, renewable energy, biofuel and steel making. It has the third largest port in the UK and there is also a world-class advanced engineering industry based on the design, construction and maintenance of petrochemical plants, power stations and major infrastructure such as bridges. In addition, the region has the Wilton centre, which is Europe’s largest non-military private sector research centre. The petrochemical industry alone contributes £3.5 billion to the UK economy and 70,000 UK jobs depend on it. On top of that, Hitachi Rail Europe is coming to Newton Aycliffe, which is in my constituency and about 12 miles to the west of the airport. Again, a worldwide industry has been attracted to the region.

Although we have the link to Schiphol, I understand that it does not provide a connection with Australia and that the number of flights that connect to the middle east and north America have reduced in recent years. That is why the routes into Heathrow are so important. As the bmi slots into Heathrow have yet to be filled, I want the Government to consider some kind of public service obligation so that the slots remain reserved for flights from Durham Tees Valley into Heathrow. I have been pressing for that for several years, even before 2010, when Labour was in power. I would like to have the opportunity to discuss the matter with the Minister, in a meeting if possible, to see whether we can make progress. At the moment, there are about three PSOs in the UK: two in Scotland and one in Wales. In Europe, however, there are about 250, and they keep regional airports connected to international hubs.

That proposal is important for Durham Tees Valley airport, especially today. As we know in the north-east, the airport is being put up for sale by Vancouver Airport Services and Peel Airports Ltd.

[Alex Cunningham (Stockton North) (Lab)]

My hon. Friend and neighbour has proved to be a great champion for our local airport, which, as he said, is up for sale. Does he agree that when considering the future of Durham Tees Valley airport, as well as taking into account all the points he has made, the directors must seriously consider all offers to secure an expert company that is interested in providing the widest range of services at the airport rather than potential owners who are simply interested in serving the interests of shareholders and are not committed to a long-term viable future for the airport?

[Phil Wilson]

My hon. Friend makes a very important point. Transparency is very important when it comes to the sale and I know that the board is meeting every week at the moment to ensure that everything is out in the open. It is vital that whoever takes over the airport ensures it is there for the benefit of all the region, not just the shareholders.

Five or six years ago, approximately 900,000 passengers a year used the airport, but that figure is now down to 180,000 or 190,000. The largest part of those passenger numbers comes from the KLM flights between Durham Tees Valley and Schiphol. It is important that in the sale of the airport we ensure we get someone who will invest in the facility.

The airport has a proud history. It was originally known as Goosepool airport and then as RAF Middleton St George, and it was an RAF Bomber Command station during world war two. The airfield began its life as Royal Air Force Station Goosepool and in 1941 became RAF Middleton St George. The aerodrome opened as a Bomber Command station in that same year and, after the war, it served various squadrons. In 1964 it was sold and became Teesside International airport and, in 2004, it became Durham Tees Valley airport.

I understand that there are several prospective buyers for the facility at Durham Tees Valley, and I want to make sure that, whatever happens, it remains a commercial airport. If that is not to be the case, I want to make sure that it still has an aviation purpose for the north-east, whether as a general aviation facility, a cargo facility or a commercial operation. It is vital that there is a future for some kind of aviation in the Tees valley in whatever guise, because the business is needed—as I have said, it is a massive industrial complex—the tourism is needed, and investment in the facility by whoever buys it is needed.

I want to see an aviation future for Durham Tees Valley because connectivity is very important to an area with such a huge and internationally important industrial base. It is important to keep a commercial airport, but there is also a great need for the wider aviation facility. There has been criticism of the airport in the local press, but now is not the time for criticising Durham Tees Valley—we should be supporting its sale. I want the airport to have a viable aviation future that will benefit the whole region, as it is an important economic asset. The time for criticism, celebration or both is after the sale period, which I understand will be in the next week or so. In the spirit of the cross-party consensus this Bill has secured, I hope that the cross-party consensus among Tees valley MPs will also continue.

Finally, I should like to ask a question about the Bill. I understand that some of the inspections that the CAA currently undertakes will continue but that their cost will be transferred to regional airports and ultimately, I should think, to the customer. To avoid placing unnecessary burdens on regional airports and customers, will the Minister look at this issue again and let us know in today’s debate whether that is case? In an age in which greater connectivity and globalisation are bringing the world closer together, regional airports and the regions they serve deserve to be part of that economic growth, connectivity and globalisation and the economic wealth they can bring.