Rail Infrastructure Investment

Debate between Ruth Cadbury and Andrew Jones

Thursday 17th January 2019 Westminster Hall

[Andrew Jones]

I understand the hon. Gentleman’s point, and if that were the only consideration I can see how it could lead to inappropriate decisions, but that is not entirely the case. For example, the transpennine rail upgrade, which will be the biggest enhancement on our network over the next five years, would simply not be happening if we accepted his point. But I understand where he is coming from: we have to balance not only economic return and national efficiency, but the possible role in rebalancing our national geography. The lack of investment in some parts could easily be seen as a factor in economic performance.

Our decisions follow a rigorous and fair appraisal process that ensures spending goes to the projects and programmes where it is needed, delivering value for money for taxpayers and passengers. Sometimes that means that spending appears higher in some areas than in others. We cited various figures, but the numbers quoted are frequently from the IPPR. I have some reservations about the IPPR reporting, because it simply adds up future spending regardless of how far it extends. For example, its analysis includes 16 years of planned expenditure on HS2, where the most costly sections—because of land prices—are in London, but only five years of planned spending on maintenance for the other parts of our network. It includes locally funded spending by TfL, but not local, equivalently funded spending in other cities, which will result in a poor sample.

We look at data in a number of different ways. Investment in Birmingham, for example, could benefit users in Penzance, Edinburgh—anywhere across our network—and, of course, the west midlands. We look at two measures: where the investment is made and where the benefits will be felt. The numbers quoted so far on where spending is taking place largely have not taken into account where benefits are felt. However, spending figures going forward, as shown by the national infrastructure and construction pipeline, show that the Government expect to spend £248 per person in the north, compared with £236 in the south. There is an element of the phasing of schemes driving the individual spend in an area.

The rebalancing toolkit has been considered, which we have developed to support authors of strategic cases to assess how a programme or project fits with the objective of spreading growth around the country. I was asked whether it is being used. It is being used in the development of the transpennine rail upgrades and the Northern Powerhouse Rail business cases. The rebalancing toolkit is designed to help with the basic planning. It includes a checklist of questions to consider and potential evidence that can be used to help describe the rebalancing case for a project or programme in its strategic case. It is an ingredient. Does it need to be used in every single case? Given the amount of money we spend and the amount of time it takes us to plan our projects, I do not think it should be mandatory everywhere, but certainly it is an ingredient in making the right decisions. The toolkit’s objective is to make decision making more consistent by improving the focus, quality and transparency of the rebalancing evidence in the business case.

Let me answer some questions asked by colleagues. The transpennine rail upgrade offers the fantastic prospect of the north being the centrepiece of the next spending period. It is a £2.9 billion first phase of a scheme. Electrification will be a part of the proposals. It is phased to deliver the best benefits to passengers over the period. Freight will most certainly be considered; that is why we are also taking forward options for the development of the Skipton to Colne reconnection. It should be viewed as a phased activity.

The advice we have received from Network Rail is that if we spend any more money on that network during this period, with the amount of interventions required to deliver the schemes we will bring the northern rail network to a halt for just about every weekend over the next five years. We have taken the view that it would be an unacceptable price to pay, which would have a huge detrimental economic impact. We have listened to the industry experts and that is the advice they are giving us, so we are delivering this major project in phases. The criteria are about delivering the best benefits to passengers early, but our ambitions are not reduced at all.

[Ruth Cadbury]

Is it about merely measuring the benefit for the passengers? Are any other wider impacts assessed and measured, such as the impact on the environment and local areas, particularly where there are regeneration and economic development aspirations?

[Andrew Jones]

The wider considerations are taken into account. This is part of a broader plan. As the business case is created, it looks at economic benefits and environmental benefits. It is a wider case.

The hon. Member for Brentford and Isleworth asked about devolution. It is being considered as part of the Williams review, but the principle of devolution is a sound one. The suggestion that the Secretary of State is not supportive of Crossrail and the London Mayor is not correct. For example, TfL has run into some financial difficulties over the Crossrail cost overruns. We are helping it with a £2.1 billion credit facility, which it will pay back—it is a loan, not a grant. That is an important indication of how we are supportive of Crossrail and the London Mayor.

Oral Answers to Questions

Debate between Ruth Cadbury and Andrew Jones

Thursday 10th January 2019 Commons Chamber

[Andrew Jones]

If it is possible to deliver greater value, we will of course look at those opportunities. Part of the Williams review is about rail fares. I will make sure that my hon. Friend’s comments are fed over to Mr Williams for his consideration.

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

8. What steps he plans to take to reduce a potential increase in highway vehicle trips resulting from a third runway at Heathrow airport.

South Western Railway Franchise

Debate between Ruth Cadbury and Andrew Jones

Wednesday 5th December 2018 Commons Chamber

[Ruth Cadbury]

I accept that a large part of the problem with disabled access is to do with the physical infrastructure, but until that is dealt with, disabled access is dependent on the second staff member in the train being able to put out the ramp for wheelchair users. If the franchisee goes back on guaranteeing that second person on the train, disabled people will not be assured that they can get on and off the trains.

[Andrew Jones]

The hon. Lady is clearly correct; there is a key role for staff on board trains and at stations in helping people on and off the trains, and that is entirely understood. I should perhaps point out that no staff are being removed from South Western Railway’s trains. There will be more guards on trains in future, not fewer. South Western Railway has been very clear from the outset that no one will lose their job and that every service will continue to have a guard rostered. That is the offer that South Western Railway has made, and it should be seen as excellent news for customers and for South Western Railway itself, but the point about the role of staff in helping people with mobility issues is entirely understood and well made.

The declining performance that the right hon. Member for Kingston and Surbiton highlighted predates what we are discussing—it has declined over a considerable number of years. I have gone back and reviewed performance and investment, and the point I would like to make is that we have a plan and we are investing at a record level. All of this will add to the future drumbeat of improved services, and passengers will notice the difference.

The right hon. Member for Twickenham mentioned the Williams review and asked whether it would include the Department for Transport. Yes, it will. It is looking at the structure of the industry. This industry has been one of remarkable growth since the privatisation, with 1 billion extra passenger journeys a year. The system has served us well, delivering more people on to our networks, but the question is whether the structure is right to take it on into the future. If we are asking that question very broadly, the review has to and does include the Department that has a key role to play.

The introduction of the new timetable in May was clearly very problematic, and the industry has apologised for it, as it certainly should have done. Passengers were vastly inconvenienced by it; it was a failure of performance. Lessons have been learned from it, and there has been a review. The head of the Office of Rail and Road, Professor Glaister, has published a report and we will hear more on his recommendations for the future very shortly. The key thing is that lessons are being learned. We are investing in new rolling stock and having a proper hard look at how we can deliver the railway that people need. Colleagues from across the House have been very clear in their expectations of the rail industry and of the Department, and we are making sure that those expectations will be fulfilled.

Question put and agreed to.