Midland Main Line (Electrification)

Richard Burden Excerpts

Wednesday 16th September 2015 Westminster Hall

[Richard Burden (Birmingham, Northfield) (Lab)]

It is always a pleasure to serve under your chairmanship, Sir Roger. I always seem to do so in debates about infrastructure, and today is no exception. I congratulate my hon. Friend the Member for Sheffield, Brightside and Hillsborough (Harry Harpham) on securing this important and timely debate, which is his first in Westminster Hall. He introduced the subject skilfully and his arguments had great force. He has been a constant champion of public transport for many years, both on Sheffield City Council and since his election to this place.

It is four months or so since the publication of the Conservative party’s general election manifesto. Let us remind ourselves of what it said:

“We will back business by…electrifying the Midland Main Line from St Pancras to Sheffield”.

That is all very good. A decision to support electrification was made some three years ago, which was welcomed by passengers, local authorities and hon. Members of all parties. The midland main line has been the Cinderella of Britain’s main lines. As hon. Members have mentioned, the campaign to electrify the route goes back to the ’70s and ’80s, when British Rail said that doing so was “a first priority”, until the Conservative Government of the day withdrew their support. There is a distinct sense of history repeating itself. Nobody can fail to appreciate the strength of feeling that still exists on the issue in all parts of the House and all parties, and I am sure that passengers up and down the route will welcome the contributions of hon. Members on both sides of the Chamber.

The case for electrifying the midland main line is compelling. A Network Rail assessment in 2009 found that the project’s benefit-cost ratio was “technically infinite”, as my hon. Friend the Member for Sheffield Central (Paul Blomfield) has said. More recent figures published by the Department show that the benefit-cost ratio of the project is superior to those of other major projects that are proceeding. Network Rail has said that the project is

“critical to delivering a reliable and sustainable railway and tackling overcrowding.”

In 2012, the Government talked about an “electric spine” that would convey passengers and freight from Southampton to Sheffield, which was, again, described as a first priority in terms of rail investment.

Rail investment in the north of England, including Yorkshire, falls notoriously short compared with the funding made available to other regions. According to the Department’s own figures, rail investment per head is lower in the east midlands than in any other English region. That point has been emphasised by hon. Members from the region; I am sure that the Minister will agree that they have been giving her “aggro” about that, to quote the hon. Member for Newark (Robert Jenrick). The electrification of the midland main line would have gone some way towards addressing the inequalities.

Electrification is not the only problem, however. Some of the trains on the route date back to the 1970s. Although they have performed admirably over the years, they must be withdrawn or upgraded at significant cost by 2020 to comply with the Disability Discrimination Acts, as my hon. Friend the Member for Sheffield South East (Mr Betts) has pointed out. The clear aspiration was that the rolling stock would be replaced by superior electric trains, but that, too, has been thrown into doubt.

I will return to electrification in a moment, but it is important to set out that the upgrade package also contained significant speed improvements. Indeed, when the Secretary of State announced his decision to “pause” the electrification programme, he said:

“We will press on with the rebuilding to speed up and straighten the track at Market Harborough, and with the rebuilding of the Derby track layout. That will mean faster services soon, and it will enable us to make the most of the electrification and new trains that will result from future franchises.”—[Official Report, 25 June 2015; Vol. 597, c. 1073.]

That point has been made by several hon. Members. The problem is that as far as we can tell, there is still a £9 million funding gap for the Market Harborough project, and there has been no clarity from the Department about whether and how that gap will be filled. Worse still, there are worrying rumours and reports—most recently in Construction News—that the Hendy review has concluded that only a fraction of Network Rail’s control period 5 schemes are affordable. That throws into further doubt some of the things that the Government have been saying, so I hope that the Minister can provide some clarity today. It has been reported in The Sunday Times and Passenger Transport that on top of escalating costs, Network Rail’s budget may be cut further in the comprehensive spending review, threatening not only improvement projects, but essential maintenance.

That is a world away from what we were told in April, when the Chancellor said:

“Spending review will set out improvements to rail travel in East Mids including electrifying Midland Main Line from Bedford to Sheffield”.

Let us not pretend that that has nothing to do with the choices that the Government have made, and nothing to do with the fact that different choices are announced before and after an election when marginal seats are at stake. Ministers have adopted a policy of implausible deniability on the matter, but let us recap some of the facts. We first raised concerns about cost overruns on the great western main line in in May 2014, just weeks into the new investment period. Last October, the then shadow Secretary of State, my hon. Friend the Member for Wakefield (Mary Creagh), asked the Transport Secretary to say

“which electrification projects will be delayed or cancelled”—[Official Report, 23 October 2014; Vol. 586, c. 1030.]

as a consequence of cost overruns. The Secretary of State was apparently so concerned about those matters that he ordered an “urgent” review of Network Rail’s projects, which he received in September. He has refused to publish it, so we can only speculate on its contents. The Transport Committee warned in January:

“We are concerned that key rail enhancement projects…have been announced by Ministers without Network Rail having a clear estimate of what the projects will cost, leading to uncertainty about whether the projects will be delivered on time, or at all.”

The Committee stated:

“Electrification of lines in the North West, the North trans-Pennine line, and the Midland Main Line, should not be put at risk due to the projected overspend on the Great Western Main Line.”

Crucially, we now know, thanks to documents obtained by Labour under the Freedom of Information Act, that in March, Network Rail’s board agreed to

“decisions required jointly with the DfT re enhancement deferrals from June”.

Unnamed sources in the Department initially denied to the BBC that there was any knowledge of these discussions before the election. However, Network Rail’s chief executive subsequently confirmed:

“In mid-March 2015, Network Rail informed DfT that decisions may need to be made in the coming months about the deferral of certain schemes.”

Are we now asked to believe that Ministers really had no knowledge? I have previously described the midland main line as something of a Cinderella route, and to believe what the Government have been saying about the route is a bit like believing in fairy stories, which always seem to end with a silver carriage turning into a pumpkin.

Voters heard promises to deliver the electrification of the midland main line in the best of faith. The only people who did not know that the investment programme was collapsing, apparently, were Ministers in the Department for Transport. Will the Minister address that today? It is a straightforward question, but her Department has refused to answer it until now. When Network Rail told the Department in March that decisions may be required on the deferral of major rail projects, were Ministers in the Department informed?

[The Parliamentary Under-Secretary of State for Transport (Claire Perry)]

I am happy to put to rest once and for all the conspiracy theory that the hon. Gentleman knows better than to perpetrate. My boss, the Secretary of State for Transport, has stated unequivocally on multiple occasions that the first time he received advice that either of these projects should be paused was on 15 June 2015.

--- Later in debate ---

[Richard Burden]

The Minister has been very clear. She will have to answer my next set of questions, and I hope she will when she sums up. Were her officials therefore not telling her what they were being told by Network Rail, or was the chief executive of Network Rail telling porkies?

Looking ahead, it is not clear what remains of the Government’s much-heralded “biggest programme of rail investment since the Victorians.” It now looks as if the much-heralded northern powerhouse has had the power turned off, the midlands engine has been left to rust and the electric spine has been broken. There is enormous anger in the north of England about the northern powerhouse, of which the midland main line project is a part.

[Mr Bone]

I was not going to intervene, but I thought this debate had been constructive and useful on both sides of the Chamber. The shadow Minister’s political rant is out of place. I could easily ask, “How many miles of railway did Labour build in 13 years?” This is not the place for that debate.

[Richard Burden]

I have made it clear that there is cross-party anger about the delays to this project, and I think that anger is genuine from Government Members. I imagine that they are as concerned as Opposition Members about why something that was promised as recently as April has since been removed and about the discrepancies that appear to exist about what happened.

[Mr Bone]

Thirteen years.

[Richard Burden]

If the hon. Gentleman wants to talk about the record of the last Labour Government, I am happy to do so. There is not a lot of time.

[Sir Roger Gale (in the Chair)]

Order. The shadow Minister might be happy to do so, but the Chairman is not.

[Richard Burden]

I will simply say that Labour invested more in the railways in real terms than any previous Government.

I hope the Minister is able to confirm today that, whatever happened in the past, Cinderella will finally get to the ball. Ultimately, passengers in that part of the country need to know whether the full speed improvements package will go ahead, as planned. I even hope that she is able to tell us that electrification of the midland main line will go ahead under a reasonable timetable, as promised. When will that announcement be made?

This has been happening not for years but for decades. Passengers deserve clarity, and the Government are the only people who can give that clarity. I hope the Minister will do that today.

--- Later in debate ---

[Claire Perry]

The hon. Gentleman refers to the £9 million shortfall. I need to investigate that further and will write to him. I believe that efforts are being made by several organisations to fill that important funding gap.

The hon. Gentleman has prompted me to answer his important rolling stock question regarding electrification and the cascade, on which he is absolutely right to focus. It will be the case that when preparation work starts for the new franchise, which will be let in 2018, all the questions around rolling stock specification and the requirement for new trains will be put into it. When we invited tenders for the TPE franchise, we gave bidders an option and set out what we knew about improvement works.

By the way, there is this idea that we are somehow not investing in the north, but has the hon. Member for Birmingham, Northfield (Richard Burden) travelled on the new electric trains that run between Manchester and Liverpool and Liverpool and Wigan? Electrification has come to that part of the UK for the first time. I hope that he will join me in celebrating the fact that those cities now have new electric trains, which were delivered by this Government, as promised. We are 100% committed to ensuring that the £38 billion unprecedented investment in the railways happens right across the UK, not including HS2, which, as my hon. Friends pointed out, is vital to speed up journey times to and from the north and to pull wealth out of the south-east. We will also continue—[Interruption.] Did the hon. Gentleman want to celebrate and welcome that electrification?

[Richard Burden]

There have been reports—I mentioned the one in Construction News—that say that the Hendy review has already concluded that only a fraction of the control period 5 projects are financially sustainable. Does the Minister have those reports as well? If so, how does she square them with what she has just said?