Oral Answers to Questions

Baroness Winterton of Doncaster Excerpts

Thursday 23rd February 2017 Commons Chamber

[Andrew Jones]

I am aware of the report, and we await the recommendations from Transport for the North on northern powerhouse rail, but the point about the report is that it offers a snapshot of where we are at the moment. It reflects where individual projects are in development and delivery. The situation will look extremely different in a few years.

[Dame Rosie Winterton (Doncaster Central) (Lab)]

Is the Minister aware that a 21% cut, on top of existing cuts, to the mode shift revenue support grant will have a devastating effect on the rail freight sector in the north of England and could lead overall to up to 190,000 extra lorry journeys every year? Surely this is taking things in absolutely the wrong direction. Will he undertake to reverse the cuts?

[Andrew Jones]

I hear the right hon. Lady’s comments. Our policy is to get more freight on to the railways. One of the points of HS2 is to free up capacity on the existing network for more freight. I will relay her points about the mode shift revenue support grant to the rail Minister.

Exiting the EU and Transport

Baroness Winterton of Doncaster Excerpts

Wednesday 23rd November 2016 Commons Chamber

[Dame Rosie Winterton (Doncaster Central) (Lab)]

As my hon. Friend the Member for Middlesbrough (Andy McDonald) and other hon. and right hon. Members have made clear in this welcome debate, Brexit has huge implications for our whole transport network, but I want to focus on the rail freight sector. I was disappointed that the Secretary of State did not include rail freight as one of his priorities, and I suspect that the rail freight industry will be disappointed, too. When the Minister replies to the debate, I hope he will reassure us that the Government take the industry’s concerns seriously.

I have previously raised in the House the situation of DB Cargo UK, a company with headquarters in my constituency that has recently announced 893 redundancies. In a letter to the trade union ASLEF, the company said that as well as falling demand from the coal and steel industries, Brexit has caused a slowdown in demand for the movement of freight by rail. I have discussed the problems facing the rail freight industry with the relevant trade unions and also this week met the chief executive officer of DB Cargo UK, Hans-Georg Werner. I hope Members and the Minister will agree that rail freight is a key service for those doing business in the UK, enabling the import and export of goods through ports and the channel tunnel and, crucially, the movement of goods within the UK. Rail freight depends on the total volume of UK trade as well as the modal share between rail and road. It is a good barometer of the health of the economy as a whole.

[Andy McDonald]

Does my right hon. Friend agree that sustaining the rail freight industry is vital for the maintenance of the infrastructure itself and that we neglect that issue at our peril?

[Dame Rosie Winterton]

My hon. Friend makes an absolutely correct point. That is why we need to use this debate to highlight some of the infrastructure issues we face and to try to tease out of the Minister what the autumn statement might mean for the rail freight industry.

At the moment, the Government are giving little clarity as to what they are looking for from future trade agreements, but it is clear that some options, particularly those with increased trade tariffs, could be challenging for the UK market as a whole and for rail freight in particular. We know that uncertainty about what trade agreements will be reached in those Brexit negotiations is having a detrimental effect on business. The rail freight industry has been especially affected by the slowdown in the construction industry, where there is a nervousness from investors; as we wait for the Government to set out their negotiating position, investment decisions are being put on hold. Whether we are to remain in the customs union and whether we are to maintain access to the single market could have massive impacts on our customs and excise regime, which would naturally have an impact on points of entry, such as ports.

We must also consider the direct impact of European legislation on the rail freight industry. Much railway legislation derives from European law and provides a number of essential protections for rail freight, for example, on track access and charging. It will be vital that these protections continue in any revised legislation. I know the industry considers it essential that a coherent and holistic approach is taken, with any change in law being specifically linked to a change in Government policy for the railways, rather than having piecemeal changes. That applies to legislation on rail freight through the channel tunnel. Many railway standards are also set at European level, particularly technical standards for interoperability, which aim to improve the cost-effectiveness of railways and the ability to operate across Europe. I hope the Minister can assure me that discussions with the industry are being held about any revisions to infrastructure standards, to protect the ability of freight to operate efficiently.

There is a real need for the Government to provide reassurances to the rail freight sector, so that business confidence remains strong and investment is supported. Rail freight operators need confidence to plan ahead, when buying new wagons, for example, investing in new terminals to support future traffic and looking at expanding in areas such as the automotive industry. Again, the Government need to work closely with the rail freight industry to make this happen and deliver solutions that support growth.

One such solution is, of course, HS2, which has the potential not only to provide business for the rail freight industry during construction, but in the longer term to free up capacity for rail freight. Again, I hope the Minister can assure the House that the Government are talking to the industry about the potential for rail freight in HS2.

There are many other areas of European law that affect the rail freight industry, especially workers’ rights and environmental legislation. Workers’ rights and protection are particularly important in this industry not least because of safety considerations—something of which we are too well aware at the current time. I hope that the Minister can assure me that he is discussing these issues with the relevant trade unions.

My hon. Friend the Member for Liverpool, Riverside (Mrs Ellman), the Chair of the Transport Committee, made some very good points with regard to environmental legislation. Rail freight is vital in cutting emissions, and we need assurances that, once we have left the European Union, we will mirror agreements under the EU and work actively to help the industry by investing, through Network Rail, in projects that increase capacity, improve connectivity and encourage intermodal solutions to help cut emissions. I hope that, in the process of doing that, we will look across Europe for good examples. In Austria, for instance, I understand that subsidies are available for trains that carry road freight vehicles, and we need to consider whether we should be emulating such practices as we go forward. Will the Minister tell us what planning has been done to improve not only freight productivity, but that link with environmental targets?

On the autumn statement, will the Minister tell us what its implications are for the rail freight industry? I am not sure whether I heard the words “rail freight” mentioned during the statement. I know that the Chancellor said that it will be about departmental decisions, but, again, because the Secretary of State did not mention it in his opening remarks, can the Minister shed a little light on what he thinks the Department is looking at with regard to rail freight, and also what the process will be for coming to those decisions? Investment was talked about, but we need to see that applied to the rail freight industry.

As we have seen today, the process of leaving the European Union will be complicated, fraught with uncertainty and might have considerable unforeseen consequences for our economy’s productive capacity. The need to secure the most advantageous deal for business is understood, but of course the shape of that deal is what will be contested over the coming months. I hope that we can agree that there is an overriding need to reduce uncertainty for business as a whole and for the rail freight sector in particular. It is essential that the Government have serious discussions with the rail freight industry and the unions, which represent those who work in the industry, about the post-Brexit future, so that the best possible outcome of Brexit negotiations can be achieved. Again, I hope that the Minister, in his reply, will be unequivocal about his commitment to openness, transparency and the fullest possible consultation with all those involved in this vital industry.

--- Later in debate ---

[Mr Jones]

That will of course be a matter for this Parliament. This is about the entire issue of regaining control, which we do not have at the moment. Once we regain control, it will be this Parliament that makes such decisions.

The hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) exhibited a nice line in transport-related puns, for which I compliment him. He raised the important issue of the effects of leaving the EU on business and travellers. My Department is currently engaging closely with businesses right across this sector and 50 others with a view to gauging their concerns and the opportunities. I apologise that I cannot respond to all the issues he mentioned, but trans-Atlantic routes was an important one. I recently had an interesting discussion with Airlines for America, which clearly has an equal interest in the matter from the other direction. That is an example of the fact that third countries will also play a part in the process. As part of the Department’s consultation, we are engaging with interlocutors not only from Britain but from the continent and third countries.

My hon. Friend the Member for Bath (Ben Howlett) raised several issues, including vehicle emissions. EU environmental law will be fully absorbed into our own corpus of law and we can then decide what arrangements we make with regard to that legislation, including confirming it if necessary.

The hon. Member for Liverpool, Riverside (Mrs Ellman), who chairs the Transport Committee, referred to several important matters, some of which I will touch on. She asked what would be the future arrangements for setting standards for new vehicles, and the Department for Transport is focused on that question. Many vehicle standards are actually shaped in United Nations bodies, and the EU absorbs them into EU law. That process would therefore be absorbed into our domestic law as part of the great repeal Bill process. She mentioned access to the single market, which remains a top priority for the Government. We want to secure the best possible access to the single market—consistent with our other priorities as a Government.



My hon. Friend the Member for Eastleigh (Mims Davies) raised several important constituency issues, including Southampton airport. She welcomed my right hon. Friend the Chancellor’s infrastructure announcements, which will provide a major boost for this country’s transport infrastructure.

The right hon. Member for Doncaster Central (Dame Rosie Winterton) focused her remarks on rail freight. We recognise that rail freight is an important part of the issue that we are considering today, and I can tell her that representatives of the rail freight industry have participated at round-table discussions held with the rail industry more generally by my right hon. Friend the Transport Secretary.

[Dame Rosie Winterton]

Are Ministers also having meetings with the trade unions who represent members in the rail freight industry?

[Mr Jones]

What I can say is that the Department encourages the trade unions, as it does every other part of the community, to contribute to the consultation that we are currently holding. I suggest that the right hon. Lady encourages them to contact us.

The hon. Member for Glasgow South (Stewart Malcolm McDonald), who pronounced himself to be a passionate supporter of the remain campaign, made a remarkably Eurosceptic speech, in which he raised the issue of Volkswagen and what he described as a “scandal”—many in this House would agree with that. As I have said previously, when the great repeal Bill comes through, the EU legislation will be absorbed into our own body of legislation and we can then amend it. It will be up to this Parliament to decide whether it wishes to improve on the current arrangements, and I discern from his remarks that that is something he would welcome.

The hon. Member for North Antrim (Ian Paisley) made an upbeat speech, in which he identified a number of opportunities arising from Brexit. He raised the issue of the package travel directive, and all I would say in response is that we are aiming at a new state of affairs, under which this Parliament can make decisions such as that and not simply accept the directives that come from the EU.

Cost of Public Transport

Baroness Winterton of Doncaster Excerpts

Tuesday 19th January 2016 Commons Chamber

[The Parliamentary Under-Secretary of State for Transport (Mr Robert Goodwill)]

This is only the third Opposition day debate on transport since 2010. This Government are always keen to debate transport issues in the House, so let us hope that, like London buses, two will come along very soon.

The hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) talked about the importance of aviation. We understand how important that is for remote communities, which is why, for example, we are supporting connections between London and Dundee and London and Newquay. He accused the Government of spending more time opposing the SNP than Labour, so I will move on to the next speaker.

My hon. Friend the Member for Redditch (Karen Lumley) explained how Government investment is delivering for her region and, in particular, the benefits for the Birmingham area from HS2 and the capacity it will deliver.

The hon. Member for Oldham West and Royton (Jim McMahon), in an excellent maiden speech, paid tribute to his predecessor. He has a track record of delivering locally, which I am sure had a lot to do with his by-election success. He talked about the courage and determination of Oldham folk, a quality shared on both sides of the Pennines, and I am sure that that his sons Jack and Harry will be very proud of their dad today.

My right hon. Friend the Member for Chelmsford (Sir Simon Burns) gave us a reality check about the bad old days of British Rail. If Opposition Members were paying attention, they might want to remove their rose-tinted spectacles. The hon. Member for Streatham (Mr Umunna) spoke for hard-pressed commuters and I bet that if he was leading his party today he would not be contemplating nationalising the railways.

My hon. Friend the Member for South Derbyshire (Heather Wheeler) welcomed HS2 and investment in the midland mainline. The hon. Member for Newport East (Jessica Morden) highlighted the cost to communities of the Severn crossing. There was a reference in an intervention during her speech to God’s own country, but I thought for a minute it was to God’s own county.

My hon. Friend the Member for Elmet and Rothwell (Alec Shelbrooke) talked about Leeds, which, as we know, is the biggest European city to have no integrated transport system of its own.

The hon. Member for Rochdale (Simon Danczuk) talked about how we should link fare rises to inflation, but I point out that that means inflation plus zero, which the previous Government failed to do. Whichever measure we use, it is important to note that fares will rise more slowly under this Government than wages.

My hon. Friend the Member for Milton Keynes South (Iain Stewart), to whom I pay tribute for his work on the Transport Committee, asked a big question that the Opposition need to address, which is how they will pay for all their promises. They could not make that argument in 2015 and I suspect that they will fail again in 2020. He talked about the cost of fares, and the point is often made that fares in Europe are higher than fares here in Britain. I checked out what it would cost my children to return from university for Easter. My daughter, who lives in London, can travel one way from King’s Cross to York for as little as £20 if she decides to depart at 7.08 in the morning, but as she is a student I suspect she will want to travel later. To arrive for lunchtime, she can pay £38 but she gets a discount of one third as she has a student railcard, so she can come to York for £25.10 on the east coast main line, run by Virgin. My son, who is travelling down from Newcastle, can do so for £6.90 or £9.40.

I am not sure whether, just before the election in 2010, the outgoing Chief Secretary to the Treasury was following a tradition or setting a precedent when he left the now-infamous note saying:

“I’m afraid there is no money”.

How refreshingly honest. I thought I would follow suit and on my last day in the Department for Transport, as I packed up my personal effects before leaving to fight the election last year, having paid particular attention to the opinion polls, I concluded that a return to Great Minster House was unlikely, but hoped that my replacement would be cheered by a message. Here it is, in my hand. It reads: “There is money for infrastructure thanks to our long-term economic plan.” I am sure that that is one reason why we have had so few Opposition day debates on transport over the past five and a half years. Ours is a record of delivery compared with 13 years of disappointment under Labour.

The Secretary of State pointed out that electrification under Labour was carried out at less than a snail’s pace, less than 1 mile a year—or, to put it another way, Hornby delivered more electrified rail network in the time Labour was in government. The investment mentioned in my note is being delivered, with 4,000 new carriages, £38.5 billion to improve our railways, £15 billion for a proper multi-annual road investment strategy and £6 billion to address the pothole backlog we inherited. There is also, of course, high-speed rail to free up existing rail capacity for passengers and freight, shrinking the size of our country, running to Manchester and Scotland from day one. Indeed, HS2 will run to Glasgow from day one; Scottish crews will be manning trains in Glasgow from day one.

When I go to Brussels, I realise that it is our franchising model that countries such as Italy and Spain want to emulate, and British train companies are winning franchises in Germany. They can see how the competitive franchise system is delivering better services, new rolling stock, smart ticketing and more user-friendly refunds for delays.

[Dame Rosie Winterton (Doncaster Central) (Lab)]

claimed to move the closure (Standing Order No. 36).

Question put forthwith, That the Question be now put.

Question agreed to.

Main Question accordingly put.