Tyne and Wear Metro

Sharon Hodgson Excerpts

Wednesday 1st July 2015 Westminster Hall

[Mrs Lewell-Buck]

That is a point that I will make later in my speech. The Metro cars are grossly outdated, and they cause the bulk of the delays in the system. The constituent I mentioned is not the only person who feels that they have to organise their family’s life around the unreliable service. One young man wrote to me to say that he actively avoided taking the Metro to college, even though it was theoretically the most convenient route, because he simply could not rely on the service. He said that some days he found it easier to stay with his grandparents in another area, because they live closer to his college, rather than relying on the Metro to get him to class on time.

We need to think about the economic impact of an unreliable service. A single person being half an hour late for work may have a relatively small impact, but we should remember that when a fault occurs during peak time, hundreds of journeys are disrupted. Metro figures show that more than 50,000 minutes of delays occurred last year, which is more than 800 hours. That is a lot of working time wasted. When companies look for a place to locate their business, one of the top items on their checklist is the transport infrastructure. They want to know that there is a reliable transport network that will allow them to attract employees from as wide an area as possible. If we want our regional economy to do well, we need a transport system that is up to the job.

It is clear that the Metro is simply not coping at the moment, and most of the problems that commuters experience come from the fact that the network’s trains and infrastructure are on their last legs. The Metro is long overdue for an upgrade, and trains that were expected to retire from service in 2010 have been patched up and are now expected to carry passengers until 2025. Commuters and my hon. Friends know that that is not a real solution. Our oldest train cars have been in service for 40 years, and no amount of refurbishment or repair can disguise the fact that they are falling apart. Our fleet has been refurbished at a cost of £30 million, but that does not appear to have helped things. Power failures and door failures, which are the two biggest culprits in delays, are happening more frequently than they did only a year ago. The number of power failures has increased by 49% and the number of door failures by 29%. The number of passenger complaints is on the rise, and of 502 complaints reported in April, more than 300 related to train performance.

The trains are not the only problem for our passengers. Brand new ticket machines and barriers malfunction far too often, and the departure boards on station platforms often display incorrect information. That can be particularly irritating for my constituents because South Shields is at the end of the Metro line, so boards that display incorrect destinations can mislead passengers. Support for passengers whose trains are delayed is not good enough, and passengers whose journeys are disrupted are given little time to find alternative routes to their destinations. The “Sort out the Metro” group believes that as many as half of the disruptions are not reported on social media, which means that passengers who rely on such sources of information are left in the dark about delays.

[Mrs Sharon Hodgson (Washington and Sunderland West) (Lab)]

My hon. Friend is making some excellent points, and the debate is much needed and valuable. Is she aware of a report by the Institute for Public Policy Research in 2014 which showed that Londoners receive £5,203 more per head in capital investment than do those in the north-east? London is the capital, so we would expect it to receive a little bit more, but does she think that £5,203 more per head is an acceptable amount?

[Mrs Lewell-Buck]

I do not think that that is an acceptable amount at all. In fact, I think it is an insult to the people of the north-east that so little is spent on us per head, when it comes to transport.

Some of the problems are a matter for Metro’s management, and I have taken them up with Nexus and the North East combined authority. Nexus has, to its credit, made some changes to improve customer service, and earlier this month it announced £40 million of investment, which will include a new rail traffic management system. The North East combined authority has also taken the issue up, and it is clear that there is a willingness locally to improve the service. Fines have been imposed on the operator, DB Regio Tyne and Wear. It is important that the operator is continually held to account for poor service.

Many of the problems also stem from a lack of investment, so the Government have to answer questions. More than half of the problems result from mechanical failures, and it is an unavoidable fact that our trains are far too old and need to be replaced. They should have been replaced years ago, but now it looks as if passengers will be waiting another decade before that happens. Instead, tens of millions of pounds have been spent on trying to patch up the existing rolling stock—money that would have been better spent on a more permanent solution. In 2010, the previous Labour Government made an important commitment to invest nearly £400 million in our Metro. The incoming coalition considered scrapping that commitment, and our local authorities fought tooth and nail to protect it. The investment was essential, not least because the Metro continues, despite all the faults, to have growing passenger numbers each year. Last year, passenger growth was the fastest outside London.

If the Metro is to meet demand, it needs clarity about its future funding. Nexus is waiting for confirmation on £46 million of funding for the Metro service from 2016 onwards. Can the Minister give us any further information about the status of that funding? It is important that the money be smartly invested. Recent projects have shown that well targeted upgrades can have an impact. New technology for cleaning rails has reduced the number of incidents resulting from low rail adhesion. The announcement that the new traffic management system will be in place sooner than originally planned is also welcome news. However, as long as the issue of our trains goes unresolved, we will not see the dramatic service improvements that our passengers expect.

[Mrs Lewell-Buck]

I thank my observant hon. Friend. He is, of course, correct. Since I started this campaign and made it public that I had secured this debate, my office has received an influx of complaints from across our region about the poor performance of the Metro.

Our local councils and Nexus have shown a willingness to invest in our local transport. There is clearly local demand, but we need a similar commitment from central Government. Today I want to hear what plans the Minister has to support the purchase of new rolling stock for the Metro as quickly as possible. In a written answer to my hon. Friend the Member for Houghton and Sunderland South (Bridget Phillipson), the Department for Transport said that it has

“engaged in preliminary discussions…for the replacement of rolling stock”.

Can the Minister give us any more detail about those discussions? Bearing in mind the concerns that have been raised, will he look favourably on a request for funding for new Metro cars?

This debate is a chance for the Government to demonstrate that they are truly committed to investing in the north-east, and to delivering their promises to our region. Many of my constituents remain cynical about the Chancellor’s sudden conversion to the cause of investing in northern cities just a few months before the last general election. It is notable that a number of the transport infrastructure projects announced for our region in the pre-election Budget were in fact re-announcements, not new money. In any case, it remains unclear where the north-east fits into his northern powerhouse, if it fits at all.

As my hon. Friend the Member for Washington and Sunderland West (Mrs Hodgson) has said, it remains the case that the Government spend £5,426 a year on transport for every person living in London, but for the north-east they spend just £223 per head a year. If the Government are serious about rebalancing the economy, investing in new trains for our Metro would be a good start.

[Mrs Hodgson]

Obviously we need to fix what we have before we go any further. Is my hon. Friend aware that, with a population of some 55,000 people, Washington is the largest conurbation in the area not to be covered by the Tyne and Wear Metro? As well as giving us the money we need to make the Metro fit for purpose, we also need to ensure that the Metro covers the whole of Tyne and Wear.

[Mrs Lewell-Buck]

I could not agree more. Investment is needed so that we can roll out the Metro, because that would help our economy, although we need to fix the faults first. It is not right that a large part of our area is not accessible by the Metro.

I suspect that the Minister will try to sidestep my constituents’ complaints by saying that the running of the Metro is a devolved matter. It is right that regions and cities should have control over transport, and Opposition Members have been pushing for even greater devolution. Nexus and the North East combined authority have been holding DB Regio Tyne and Wear to account by imposing penalties where appropriate, but it would be wrong to say that all the issues we are seeing can be attributed to the operator. Even the best management cannot compensate for trains that have come to the end of their lifespan and can no longer be relied on. There is a clear need for investment.

Water Safety

Sharon Hodgson Excerpts

Tuesday 17th June 2014 Commons Chamber

[Mrs Sharon Hodgson (Washington and Sunderland West) (Lab)]

Just under a year ago at the start of the six-week summer holiday on 23 July 2013, 15-year-old Tonibeth Purvis from Barmston in Washington in my constituency, and her friend Chloe Fowler who was 14—she was from the constituency of my hon. Friend the Member for Houghton and Sunderland South (Bridget Phillipson)—tragically died after drowning in the River Wear at Fatfield in Washington. It was a lovely hot sunny day, much like we saw last week and will hopefully see again this summer. To cool off, Chloe jumped into the river. Unfortunately, that particular stretch of the River Wear has a fast current and is up to six metres deep in the middle. It is full of hidden hazards, as many rivers are. It was not long, therefore, before Chloe sadly got into difficulty. Seeing her friend in trouble, Tonibeth immediately jumped in to help her, along with a number of other friends they were with. They quickly found themselves in trouble as well, Tonibeth to the point where she was also overcome. The emergency services were called immediately, shortly before 3 pm. Unfortunately, by then it was already too late. Tonibeth was not located until 8.49 pm, and it took a huge team of emergency service workers—who by all accounts were fantastic—another hour to find Chloe.

The only saving grace of this terrible tragedy is that more young people did not die that afternoon. As her friends said in paying tribute to her in the days following the tragedy, Tonibeth died a hero, trying her best to rescue her friend. She was quite rightly recognised for that heroism as the winner of the editor’s choice award at the Sunderland Echo’s Pride of Wearside awards in November last year. As a mother myself, I do not know if that brings much comfort to her family. I sincerely hope it does.

The parents of Tonibeth and Chloe are not the only ones currently living through the nightmare of losing a child to drowning. Drowning is the third most common cause of accidental death among children in the UK. According to the response I received from the Office for National Statistics to a parliamentary question I tabled in September last year, between July 2008 and December 2012 coroners recorded 48 accidental deaths of children and young people aged under 20 in natural water. That is 48 individual tragedies, 48 families devastated and 48 schools, colleges and wider communities affected—and one persistent problem. Those figures may not tell the whole story, as coroners figures only record the primary cause of death.

The figures for deaths in water—the water incident database, or WAID, statistics compiled by the National Water Safety Forum—were put at 47 for under-20s in 2011 alone and another 42 in 2012. Those figures show that this is primarily an issue for boys, who account for 78 of the 89 deaths in those two years. None of these figures, of course, include Tonibeth and Chloe or any other young people who lost their lives last summer or since. I understand that in the six-week hot spell we had last summer there were 36 deaths. Of course, many other children and young people have come close to losing their lives. Some have suffered serious injuries or been left traumatised by getting into trouble in the water. When we take all age groups into account, there are some 400 deaths a year, which is the equivalent of one every 20 hours.

The fact is that the vast majority of these individual tragedies can be avoided if people possess a basic understanding of how to look after themselves and know what to do in an emergency, whether it happens to them or others.

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Lady on bringing this subject to the House for consideration. In my constituency, unfortunately, we have had similar experiences, usually during warm spells of weather. Does she think that advertisements and warnings should be sent out through local press and local government to ensure that people are aware of the dangers in quarries, rivers and the sea? Those are the danger spots whenever the weather is warm.

[Mrs Hodgson]

I will come on to prevention shortly.

The Royal Life Saving Society was, opportunely, in Parliament today, hosted by the hon. Member for Stratford-on-Avon (Nadhim Zahawi), who had hoped to attend the debate. It held a briefing session for MPs and peers on this very subject ahead of drowning prevention week, which begins on Monday 23 June and runs until 29 June. It conducted research last year that found that 68% of people said they would not know what to do if they saw someone drowning, or how to treat them even if they were able to recover them safely from the water. However, in spite of that self-awareness of lack of capability, 63% of those people said they would still jump in to try to save a family member who was drowning, and 37% said they would even do so to try to save a stranger.

Most victims of drowning are alone, but it is little wonder that the kind of selflessness and heroism that was displayed by Tonibeth can so often lead to an even deeper tragedy. In the hope of preventing such tragedies, the RLSS has made a number of demands in its “manifesto for water safety”, which I think require close consideration by the Minister and, indeed, other members of the Government.

The RLSS argues that schools should ensure that every child is taught the basic principles of water safety, and personal survival skills. That means that children should understand the risks involved in various water environments such as currents, loose banks and vegetation, and should know how best to enter and exit water, which includes what it is best for them to do if they fall in. It means that they should be able to orientate and contort their bodies in the water, especially if they are caught in a current and need to turn to face the direction in which it is taking them so that they avoid hurting themselves and do not miss opportunities to grab something. It means being familiar with the typical survival skills that would generally occur to us, such as treading water, making ourselves buoyant, and swimming in clothing. Swimming itself is, of course, a very important skill, but it is also important to be taught the techniques that make it possible to rescue other people safely, which include keeping their heads back and above water.

The current school curriculum mentions safety, but the target of being able to swim 25 metres by the end of primary school is the real priority for most schools. Being able to swim 25 metres would certainly help, but doing so in a warm, clear swimming pool with lifeguards at hand is completely different from having to swim 25 metres, or even 5 metres, in a cold lake or a river with a strong current and hidden hazards.

[Julie Hilling (Bolton West) (Lab)]

My hon. Friend was right to list all the water safety skills that children should be taught, but does she agree that every school leaver should be a life saver? Should not all young people be taught cardiopulmonary resuscitation, how to place people in the recovery position, and other ways of saving people’s lives once they have been rescued?

[Mrs Hodgson]

Yes. Those are all valuable life skills. If I had to choose an overriding priority, I would choose water safety education and survival skills.

[Nadhim Zahawi (Stratford-on-Avon) (Con)]

I thank the hon. Lady for what she said earlier about the work of the Royal Life Saving Society UK and its visit to the House. Does she agree that, ahead of the summer months, Members in all parts of the House have a unique opportunity to promote the drowning prevention message to young people in particular? Is that not something that we can all do together now, in the short term?

[Mrs Hodgson]

Yes, I do agree. I should like to think that, following the debate, an all-party parliamentary group could be set up. Perhaps it could be led by the hon. Gentleman, who showed such great leadership in organising today’s event in which the RLSS highlighted the importance of life-saving. I can think of no better gentleman to chair such a group. I should be more than happy to be a qualifying member, as, I am sure, would other Members who are present this evening.

As the hon. Gentleman will know, the RLSS argues that water safety education should be extended, in an age-appropriate way, to key stages 3 and 4. It believes that such education should be directed at the age group that is most likely to take risks around water and get into difficulty as a result, and that parents should be notified about their children’s progress. In the context of the tightening of budgets, it also recommends that schools should consider focusing on pupils who cannot swim. I am sure that many young people would be disappointed if they were told that they could not take part because they had already got their badges, but there is some sense in doing that, as long as the competent swimmers receive good-quality provision in some other sporting activity at the same time. The RLSS also calls for Ministers to give schools a clear understanding of what is expected from them in this regard, and then to ensure that progress is inspected and reported on so that schools are accountable to parents for that progress.

The Minister may be aware of a survey by the Amateur Swimming Association which found that nearly 20% of schools, and 25% of academies, do not know their swimming attainment rates, or do not offer swimming at all. It also found that 51% of primary school children are unable to swim the minimum of 25 metres by the time they leave primary school. This concern about the decreasing priority given to swimming is echoed by Councillor Fiona Miller, who represents the Washington East ward in my constituency, where this tragedy occurred, and who is also a swimming teacher. She also reminded me that many schools used to get resources on water safety and many other things from the Youth Sport Trust, but increasing numbers of those schools are reviewing their membership of this body in light of fragmented and squeezed budgets. These figures and concerns are extremely worrying, so I hope the Minister is able to provide some figures of his own, particularly on the provision of swimming in primary academies, which are not bound by the curriculum at all.

The RLSS also calls on the Government to provide support for an annual public awareness campaign highlighting drowning risk, which would be useful for adults and children alike, as well as to ensure that there are sufficient safe places that children and young people can go—and can afford to go—to swim during the summer holidays, or indeed at evenings and weekends. I hesitate to make this point because I do not suggest for a moment that there is any causal link between the Government’s actions and any drownings, but Labour’s free swimming initiative provided such a valuable opportunity for so many young people to swim safely and to learn to swim at any time, but especially over the school holidays, and it is a great shame that it was scrapped.

There has certainly also been an increasing threat to public swimming baths as councils struggle to balance their budgets in extremely challenging times. In my constituency, campaigners found out just this week that they had been successful in lobbying to save Castle View enterprise academy’s pool, which is widely used by the whole community, including local primary schools, from having to close its doors. As savings become ever harder to make for local authorities, the future of other pools across the country will increasingly come into question, and many of them will not get the reprieve that this particular one has had, and some may have to put up prices.

I know that there was a degree of indecision at official level as to which Department was to answer this debate. The prevention of drowning accidents, and therefore of the loss of lives and serious injury, is a cross-cutting issue, and the Department for Environment, Food and Rural Affairs, the Department for Communities and Local Government, the Department for Education and the Department for Culture, Media and Sport all have a stake in this, as do their local and national partners and agencies, but, as we know, there is always a risk with cross-cutting issues that they will fall between the cracks in both Whitehall and at a local level, rather than the overlap helping to bridge those gaps. Just as in so many other areas, one of the best preventive tools that Government have at their disposal is our education system, and therefore although I admire—and, indeed, like—the Minister who is here tonight, I am disappointed that an Education Minister is not here to respond. Just as with healthy eating and lifestyles and sex and relationships education, this is an area in which we can, through education, give children and young people the skills and knowledge they will need at the very point in their lives when they will need it, as well as for when they grow up, and not just in order to pass exams or help them get into Oxbridge, but to help them lead safe and healthy and, therefore, long and happy lives.

I therefore look forward to hearing the Minister’s response on what his Department and others across Government are doing to this end, and I ask whether they will look at the very modest and sensible recommendations from the RLSS, and what further ideas and policies the Government may be convinced to explore in the near future to help to prevent another tragedy like the one that shook Sunderland last year, and which has left such a devastating gap in the lives of Tonibeth’s and Chloe’s family and friends.

As I mentioned earlier in my speech, drowning prevention week is next week. It is a great initiative usually aimed at primary schools, but this year it is being expanded to secondary schools as well. As far as that campaign will reach, however, it will not reach all schools and it will not reach all children. It would be a major, and very timely, boost for this campaign if the Minister was able to say tonight that the Government will take some of the RLSS calls for action on board, or perhaps come forward with some other proposals, so I look forward to hearing his response.

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

I congratulate the hon. Member for Washington and Sunderland West (Mrs Hodgson) on securing this debate. Let me say at the outset that I am aware of the tragedy that happened last July in her constituency, and the Government very much sympathise with the families of the two girls involved. The hon. Lady is right to say that the incident highlights why we must do all we can to raise awareness of the dangers of water, and the measures we can and are putting in place to ensure that such an incident does not happen again.

I am responding on behalf of the Government as the Minister with responsibility for maritime issues, but as the hon. Lady pointed out, water safety and drowning prevention are not topics that fit neatly within the remit of any single Department. Having heard her speech, I, like her, rather wished that an Education Minister was responding. The Department for Culture, Media and Sport, for example, actively promotes participation in water-related sports and activities. The Department for Education promotes water safety awareness and swimming through the national curriculum. The Department for Communities and Local Government has a role to play through local authorities, which have responsibility for beach safety and act as navigation authorities for some of our inland waters. The Department for Environment, Food and Rural Affairs has a role in the management of many of our inland waters through bodies such as the Environment Agency and the Canal & River Trust. The Health and Safety Executive, within the Department for Work and Pensions, also has a clear interest where the worlds of water and work come together.

Alongside all those Departments and agencies is a whole host of non-governmental groupings, sport governing bodies and charities that make up a matrix of interested parties with a role to play in supporting water safety and the prevention of drowning. My own Department’s primary interest is through the excellent work of the Maritime and Coastguard Agency, which includes Her Majesty’s Coastguard. That agency’s regulatory role focuses on the safety of commercial shipping and fishing operations, but most of the search and rescue incidents with which Her Majesty’s Coastguard deals are firmly rooted in recreational activities such as boating, sailing, enjoying our beaches, swimming off coasts and walking our fantastic coastline. It follows that encouraging people not to get into difficulty in the first place—prevention of the wider sort that the hon. Lady mentioned—is by far the best approach, which we encourage across the whole of Government.

More than 200 Members of this House represent coastal constituencies and will doubtless join me in encouraging the general public to get out and about and have fun near the water. According to Visit England, in 2012 there were 147 million day visits to seaside and coastal locations across the whole of Great Britain, and inland we have lakes, canals and other stretches of accessible water that the public can enjoy. However, that enjoyment is enhanced if people take personal responsibility for their own safety, understand the difficulties and dangers, treat water with the respect it deserves, and understand what they can do to have fun and stay safe.

My Department and the Maritime and Coastguard Agency have supported the work of the National Water Safety Forum, an umbrella body that brings together all those promoting water safety messages, including expert organisations such as the Royal Society for the Prevention of Accidents, the RNLI, the Royal Life Saving Society, the Canal & River Trust, the British Sub-Aqua Club, British Swimming, the Chief Fire Officers Association and many more. For many years, my Department has made a financial grant to that forum through the Royal Society for the Prevention of Accidents, which provides administration and governance support. That funding has facilitated the development of the forum and allowed it to mature into a body that shares understanding of statistical information and data, and uses that to help local authorities, sport governing bodies and lifesaving organisations plan their own safety communications. As the forum matures and shows its worth, so its membership are increasingly making a financial contribution to the forum, because they recognise that it is a body in which they can all share best practice.

The National Water Safety Forum recognised that there were different databases capturing different levels of information about water-related incidents. The hon. Lady referred to a number in her speech. The information that is recorded by the MCA on national search and rescue records, for instance, is different to that recorded by the RNLI and other rescue services. What was needed and has now been put in place is a single database that commands the confidence of all the bodies that contribute to it and use it. That has been achieved through the water incident database, which, as the hon. Lady knows, is known as WAID. It provides a single version of the truth and has captured information about fatalities and all water-related incidents since 2007.

The hon. Lady mentioned a number of inland fatalities. In 2010, the number of water-related fatalities was 420. Thanks to WAID’s initiative and the communication plans of its umbrella bodies, the message started to take hold. The number of fatalities has dropped quite dramatically and continues to fall, and it is now 50 fewer than it was two years ago. We need to do more, but the trend is going in the right direction.

Analysis shows that most of the water-related fatalities occur in rivers, followed by at the coast and then in the sea, and that is exemplified by the sad incident that the hon. Lady has described. The most common activities that people are engaged in when tragedy strikes are walking, running, swimming and, in some cases, angling. A major campaign, which has been run and targeted at people who are close to rivers or water, involves the promotion of the wearing of lifejackets. The seas around the UK coast are cold. Professor Mike Tipton, a leading academic in this field, has shown that the first and most immediate danger to people in the water is not the drowning, but the sheer cold water shock, which then leads to drowning. Wearing lifejackets on rivers and at sea buys time and keeps people alive until they can be rescued.

[Mrs Hodgson]

I do not want to pre-empt anything the Minister might say with regard to education, and I am aware that he is not an Education Minister, but is he able to comment on the Royal Life Saving Society’s campaign and its calls for Government action, or will he commit to meeting the Education Minister to take the matter forward?

[Stephen Hammond]

I will touch briefly on education. We certainly welcome what the Royal Life Saving Society has said, and we recognise that next week is national drowning prevention week. I will commit to asking my colleagues in the Education Department to reply to the hon. Lady more fully if my remarks do not provide her with the answers that she wants.

Many agencies have a strategy for safety. The MCA, for instance, focuses on very simple safety messages, urging those going on the water to get trained, check the weather, wear a lifejacket, avoid alcohol and make sure that someone else knows what they are going to do. Volunteer coastguards are based in their local communities, and they spend a lot of their time putting those messages across to schools and community groups, and the MCA uses its presence on social media, such as Facebook and Twitter, to do the same.

In January this year at the London boat show, I was pleased to support the Royal Yachting Association’s launch of its safety advice notices, encouraging safety in boating, yachting and sailing communities. It used the style of language that was right for its target audience. The RNLI has a proud record of heroism at sea and it holds a special place in British maritime tradition. It has run an excellent campaign called “Respect the Water,” the thrust of which is to encourage people to take care when they are near rivers or near the shore and to make sure that they are properly trained.

Six years of evidence shows, unfortunately, that one of the major causal factors in fatalities, particularly in young men, is alcohol. A number of organisations are sending out the message that people should not take alcohol and play around by the water, because that can have serious consequences. We welcome similar efforts by the RLSS, which include drowning prevention week next week. The prevention of drowning is a shared responsibility in every sense. As I undertook a moment ago, I will ensure that one of my colleagues in the Department for Education responds more fully to some of the points that the hon. Lady made about education.

We all want people to enjoy our beaches, our coast, the seas and the inland waters. However, we want them to understand the dangers, take responsibility for their safety and heed the advice of the many experts in the area. The RNLI’s mantra, “respect the water”, is spot on. The Government will continue to support and encourage safety awareness and swimming in the national curriculum. We support the efforts of the National Water Safety Forum to ensure that people understand the greatest risks and to promote the campaign for safety, so that tragic incidents such as the hon. Lady described at the start of her speech will become an increasing rarity.

Question put and agreed to.

Oral Answers to Questions

Sharon Hodgson Excerpts

Thursday 8th May 2014 Commons Chamber

[Mr McLoughlin]

I hear the hon. Gentleman’s representations. The simple fact is that we are seeing massive investment in rolling stock, and there are demands for even greater such investment, but that has to be balanced with the investment that we are seeing on the tracks. As I have said, we are embarking on a new round of spending on the railways, with some £38.5 billion by Network Rail plus the investment in rolling stock as well.

[Mrs Sharon Hodgson (Washington and Sunderland West) (Lab)]

4. What steps he is taking to ensure adequate provision of rolling stock in the north of England.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

10. What steps he is taking to ensure adequate provision of rolling stock in the north of England.

[The Secretary of State for Transport (Mr Patrick McLoughlin)]

The Department has recently agreed terms with Northern Rail for the introduction of electric trains between Liverpool and Manchester. Northern Rail will be able to transfer additional diesel carriages on to trains operating on other busy routes in order to relieve the crowding further. TransPennine Express has seen capacity increase with the introduction of the new Class 350 trains.

[Mrs Hodgson]

The Secretary of State will be aware that the rolling stock on Tyne and Wear metro is undergoing refurbishment, but that is little consolation to the residents of Washington who do not even have a station. Nexus has recently outlined plans for three stations in Washington as part of an extension to the metro network, and the North East local enterprise partnership has agreed to undertake the business case. Will the Secretary of State commit his officials to working closely with both parties to ensure that the business case is as strong and compelling as it can be?

[Mr McLoughlin]

I can give the hon. Lady that assurance. The Newcastle metro has been running for some time and is now undergoing a desperately needed upgrade. There is no doubt in my mind that the original metro regenerated areas that had been in serious decline. We are always looking at ways in which we can best expand those services. I am more than happy for those conversations to take place.

East Coast Main Line

Sharon Hodgson Excerpts

Tuesday 12th November 2013 Westminster Hall

[Mrs Sharon Hodgson (Washington and Sunderland West) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Bone. It has been brought to my attention that today’s debate coincides with the beginning of a new documentary series on Sky about East Coast trains and the staff who work on them, so I want to assure you that the only interest I have to declare is as a regular traveller on East Coast trains and as an MP whose constituents are similarly frequent travellers; I definitely do not have an interest as a public relations executive for East Coast or BSkyB. The reason why my colleagues and I wanted this debate was not to promote that programme, but to discuss developments in a process that will have a significant impact on the staff and travellers featured in it.

It has been just over five months since we discussed the plans in a debate in this Chamber called by my hon. Friend the Member for Middlesbrough (Andy McDonald). As I did then, I pay tribute to hon. Members who have led the campaign in Parliament so successfully, particularly my hon. Friends the Members for Edinburgh East (Sheila Gilmore), who is in her place, and for City of Durham (Roberta Blackman-Woods). I thought and hoped that the strength of feeling and argument shown then, and in debates since, might have caused the Government at least to enter one of their now trademark pauses. There is still time for them to do so. In fact, we have not seen a pause, a rethink or any evidence that they are listening to the chorus of opposition to their plans, even among their own voters.

[Ian Lavery (Wansbeck) (Lab)]

I am sure my hon. Friend will make a powerful speech in favour of the east coast main line. Is it not a fact that only about one in five—21%—of the general public supports the re-privatisation of the east coast main line, so why is Tory dogma prevailing?

[Mrs Hodgson]

That is a very good question, which the Minister will perhaps answer. For all of us here and our constituents, that is the question, and our only answer is that dogma and ideology are forcing re-privatisation to go ahead. The Government have pressed on regardless, and the tendering process is well under way, which is why my colleagues and I thought it was time for another debate.

[Karl MᶜCartney (Lincoln) (Con)]

It is a pleasure to serve under your chairmanship, Mr Bone. The hon. Member for Wansbeck (Ian Lavery) made an interesting intervention in which he mentioned that the Opposition are blaming the current Government. Will the hon. Lady tell me exactly how many train companies were renationalised in the 13 years of the Labour Government?

[Mrs Hodgson]

We are not talking about the renationalisation of the east coast main line—it has already been nationalised—but about how to stop it from being re-privatised. The point is that it is already in national ownership.

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

I congratulate my hon. Friend on securing this important debate. I suggest that there have been many changes at East Coast in the past few years. In fact, for the first time in a long time, it seems to be working well, to the point that the east coast main line has a record level of customer satisfaction. The company has won 13 industry awards since 2012, including as Britain’s top employer. It is surely endorsement enough that so many Opposition Members who travel on East Coast trains week in, week out want to fight for it to remain as it is and against changing it again.

[Mrs Hodgson]

That is the point—the east coast main line does not need to change. The process might ultimately lead to a significantly worse deal for all our constituents, as well as for the Exchequer, when there is absolutely no need to go down such a path.

As I and others said in the last debate, East Coast is doing very well under the current arrangement, both for passengers and the Exchequer. Since the failure of National Express, thousands more services have been timetabled; hundreds of thousands more passengers have used services; significant investment has been made in passenger comfort and stations, including at Newcastle; customer satisfaction has been at record highs, notwithstanding the recent blip; and complaints have been handled in a timely way 98% of the time, compared with 73% of the time under private ownership.

[Karl MᶜCartney]

Will the hon. Lady give way?

[Mrs Hodgson]

No, I will not. I will make some progress, because many hon. Members want to speak.

This is the people’s railway. It is delivering real improvements for our constituents, unencumbered by the primary purpose of having to pay dividends. That is not to say that Directly Operated Railways is squandering millions on such trivial things as improving the experience of their customers and therefore winning more of them; it is also chipping in a lot of money to the Exchequer. By the end of this financial year, it will have returned £800 million to the Treasury and put the rest of its surplus of nearly £50 million back into the service. It of course gets the lowest rates of public subsidy of all the train operators, except London commuter services.

Ministers have always talked about the need for a private operator to bring in extra investment, but have failed to make clear how much will be brought in by this process. What investment we know about appears to come from the public purse. Just as with Royal Mail, Ministers seem to be privatising the profit, while keeping the ongoing costs on the public books.

The Minister will say that decisions should not be taken on the basis of ideology, and to an extent I agree, although I must of course confess to having a default opinion when it comes to the ownership of public services. However, the returns to the Treasury and the improvements in services provide the business case in support of our argument that the line should remain directly operated. Perhaps that is why nearly half of Tory voters oppose the Government plans. If anyone is guilty of ideological decision making on this issue, it is surely the Government.

As if the west coast main line shambles, which cost taxpayers £55 million, was not bad enough, the contract extensions for other franchises—the Government have had to negotiate them so that they could bring forward the east coast main line tender—will cost taxpayers millions more in lost revenue. For example, First Great Western paid £126 million in premiums last year, but will pay only £17 million next year, as a result of the extension terms it has been given by the Government. Ministers are actually throwing money away hand over fist, just so they can make a point of privatising a franchise that they know is doing perfectly well in public hands.

[Ian Mearns (Gateshead) (Lab)]

My hon. Friend is making an excellent speech. Is it not ironic that the Government want to return the east coast main line to the private sector when it is clearly succeeding very well in the public sector, while the private sector has failed twice on that line?

[Mrs Hodgson]

That is exactly the point. Despite all the evidence to the contrary, the Government clearly do not think that a state-owned company can run the franchise viably and deliver the investment in service improvements that we want.

How ironic it is that many of the probable bidders for the service are subsidiaries of state-owned railways. Eurostar and Keolis have confirmed that they will team up to bid for the franchise. As the Minister will be aware, those two companies are majority-owned by the National Society of French Railways—SNCF—which is France’s state-owned operator. Arriva, which already operates so many franchises, including the Tyne and Wear Metro in the north-east, and has received much Government investment over the past few years, will probably throw its hat into the ring. It is of course owned by Deutsche Bahn. Abellio, which, with Serco, runs Northern Rail trains in my area, might well be tempted. It is a part of the Dutch state-owned rail operator. The Government are therefore quite happy for the east coast main line to be run for public benefit—just as long as the British public do not benefit.

[Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)]

Does not the way in which contracts are handed out to such foreign, state-owned companies mean that taxpayers in the Netherlands, France and Germany will gain at the expense of British ones?

[Mrs Hodgson]

Yes, I agree. That is exactly the point. Instead of profits generated by the franchise benefiting British commuters through investment in service improvement and dividends to the Treasury, the Government prefer profits to be channelled to other European countries, in some cases to subsidise fares in those countries. If we are to achieve the modal shift from cars to rail that we need to ease pressure on our trunk roads and to reduce carbon emissions, we must have the investment and the ambitious targets and standards in place to ensure that services are reliable and can carry on improving. Unfortunately, it appears that the Government intend to put that improvement into reverse over the next few years.

It was brought to my attention yesterday that in the past couple of weeks, the Office of Rail Regulation has published a document setting out the desired outputs for the whole rail network for the next five-year control period. That document makes it clear that the standards expected of whichever company wins the east coast franchise will be significantly lower than the national average, and possibly even lower than those of most European routes. For example, the national standard for cancelled or seriously late trains—which I have had some experience of on the east coast over the past month: the fault for that lay not with the company but with all the storms and so on—is no more than 2.2% of journeys. The east coast’s standard will be 4.2%.The national standard for just mildly late trains, which can be anything between 10 minutes and two hours, will be 8.1% in the first year. For the east coast, it will be 17%, which is more than double the national standard, and equates to more than one in six journeys. That rate will be required to come down to 12% by 2018-19, but it will still be much higher than the national rate of 7.5%.

Over the control period, we could see an additional 15,500 trains officially late and more than 2,500 trains cancelled without the operator being deemed to be breaching its required standards. Why should the east coast be given a lower standard? It is way below what the public would expect, and way below the standards set by Labour for the current control period. The apparent loosening of the required standards does not appear in any of the preceding documents on which the public have been consulted, but has now appeared at a point when they can no longer have their say. Will the Minister explain why the standards are set so low and have been revealed in a document on which the public will not be consulted? Will he give us an assurance today that that is in no way linked to the tendering process, or the Government’s desire to get the most money for the franchise to hold up as a sign of success? If we move the goalposts and make things easier for whichever train operator comes in, it makes the deal more attractive to them, and that is what seems to be going on here.

If the Government are to go through with the privatisation, it is important that the Exchequer get as much cash as possible now and over the course of the contract. However, we cannot sacrifice performance standards to achieve that goal, because people will just give up on trains that are allowed to be late on one in six, one in seven or even one in eight journeys.

If the proposal is not linked to the tendering process, perhaps it is related to the fact that investment in tackling congestion over the coming control period will be less than half the £500 million that the Labour Government allocated. That investment has resulted in improvements in north London, flyovers at Doncaster and Hitchin, and the upgrading of a parallel route for slow freight between Doncaster and Peterborough. Will the Minister assure us that service standards are not being lowered to match the investment the Government are prepared to make? Our constituents rightly expect not just a punctual service but a decent service, particularly when they might be on the train for three or four hours or more when travelling to or from the north-east or Scotland—it can take up to six hours to get all the way up to Inverness.

Will the Minister rule out the introduction of a lower-tier or third-class service, which is allegedly in the prospectus that was sent to potential bidders? Indeed, will he rule out any degradation of standard-class service in a three-class system by a future operator?

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

There is no suggestion of a third-class service in the prospectus. One version of the document was leaked, but even that did not refer to a third class, but to the possibility of a service between standard and first class. Some might like to call it premium economy. No one has ever called it third class. Can we just lay that myth to rest?

[Mrs Hodgson]

I am sure the Minister is aware that the National Society of French Railways introduced a “no frills” service in France this year, below standard class. If Keolis and Eurostar win the contract, will he guarantee that we will not see the same here? I am happy to give way to the Minister if he wants to make that guarantee now; perhaps he will make it in his closing remarks. By way of assurance, perhaps he could place a copy of the document in question in the Library. I know he said that such a claim was never in the document, but if there is such a document, could he place it in the Library so the public can see that we are not being sold down the river—or in this case down the railway line? The Government are always keen to bolster their transparency credentials, and this would be an excellent way of conducting themselves in an open and honest way.

[Stephen Hammond]

This Government are so open and transparent that all those documents are available for the hon. Lady to see now. I am surprised she did not choose to read them before the debate today.

[Mrs Hodgson]

I will go away and look more closely at the matter. I may have missed the part to which the Minister refers. Perhaps he could write to me about it, so we can be assured that there will not be a third-class rail service.

I will conclude because many Members wish to speak in the debate. I leave the Minister with the words of one of his departmental predecessors, the noble Lord Adonis. He was regularly cited by Ministers as being against public ownership when he was Secretary of State, and that was correct. However, given the success of Directly Operated Railways, he recently had this to say:

“In the last four years East Coast has established itself as one of the best train operating companies in the country, both operationally and commercially…This has fundamentally changed the situation, and it is right and proper that East Coast should be allowed to continue as a public sector comparator to the existing private franchises.”

Lord Adonis is a wise man. He had an opinion. He looked at the evidence that contradicted his opinion and, like many a wise man before him, accepted that his opinion had been wrong and changed his mind. There is still time for the Minister and his colleagues to demonstrate similar wisdom and halt this process before more money is spent by the Department and the companies that might bid. They should accept that this experiment in public ownership, forced upon a reluctant Secretary of State at the time by the failure of a private provider, has been a success and can continue to be a success.

[Karl MᶜCartney]

Will the hon. Lady give way?

[Mrs Hodgson]

No, I am just winding up. I am sure the hon. Gentleman will get his chance to speak in a moment.

Most importantly, it is time for the Government to put British passengers and taxpayers first, before taking profits out of the system—especially where such profits then go to subsidise passengers in other countries. As I said in June, I hope the Minister will listen to what parliamentarians are telling him here today. We have already had the shambles over the west coast main line. It is in everyone’s interests for the Government not to make the wrong decision on the east coast main line as well. Let us call off the tender and give Directly Operated Railways the stability and support it needs to carry on improving services and sending much-needed cash back to the Treasury. At the very least, let us allow it to bid to run the service again in the coming years, and weigh up the public benefit that that would provide in a fair and open way. Come on, Minister: it is public versus private. Surely he is up for that.

--- Later in debate ---

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

It is a great delight to see you in the Chair this morning, Mr Bone. I thank the hon. Member for Washington and Sunderland West (Mrs Hodgson) for securing the debate, which provides yet another opportunity to present the benefits of rail franchising and to talk about the east coast main line franchise.

I have listened to a number of Members speak this morning, and I hope to address some of what they have said and asked for on behalf of their constituents. Regrettably, I cannot deal with all the points, because we are engaged in a commercially confidential and sensitive procurement exercise to appoint the right service delivery partner for this vital and historic railway. On 25 October, we began the competition for the inter-city east coast main line franchise by publishing a notice in the Official Journal of the European Union, and publishing the inter-city east coast prospectus and the pre-qualifications documents, so that prospective bidders can apply to take part in this important competition. The prospectus set out some of the new policies to be included in the new franchise, such as capitalisation requirements and the GDP support mechanism to mitigate the kinds of failures we have seen in the past. The Government have learned the lessons from the west coast main line and put in place new procedures and policies. I am confident that the competition will run smoothly.

We are now in the pre-qualification stage of the competition, so it is only right that I am careful in my comments this morning not to prejudice the competition. As is normal, the Department has set up clear processes, which I must follow, for the transmission of information to the market throughout this competition.

[Mrs Hodgson]

The Minister mentioned the prospectus that is in the public domain. Will he explain the difference between that and the leaked prospectus to which my hon. Friend the Member for Nottingham South (Lilian Greenwood) referred and from which I obtained information about the proposal for third-class rail travel? Where did that leaked prospectus come from, and does it even exist? It was printed in The Daily Telegraph, which I am sure he thinks is a jolly good paper that would not print something that did not exist.

[Stephen Hammond]

The hon. Lady is drawing me into commenting on The Daily Telegraph, and I would rather not do that at the moment, for obvious reasons. The Government rightly do not comment on leaked documents. If the hon. Lady wants to rely on it, it is for her to do so, but the Government rely on the prospectus that we have issued.

I shall pick up some of the questions asked this morning. There has been a whiff of mischief in this debate. Much has been said about political dogma and the hon. Member for Easington (Grahame M. Morris) gave himself away when he said that he supports renationalisation of the railways. That is what this debate is about. It is not about securing the best deal for passengers, the railways or the east coast main line. It is about renationalisation.

The whiff of mischief continued from the Labour Front-Bench spokesman who was keen to point out what she believes is the benefit of nationalisation, but failed to point out that the previous Labour Government saw the benefits of the franchising system and privatisation, and continued with that process throughout their 13 years in office. Moreover, I gently remind the hon. Lady that when she starts a catalogue of failures, she might remember who had not done enough work on the franchising process in 2007 when National Express took it over.

--- Later in debate ---

[Stephen Hammond]

I am not sure that the hon. Gentleman would argue that with British Airways, and I am not sure why he should do so with the franchise. His point is nonsense.

[Mrs Hodgson]

I know that I cannot tempt the Minister to discuss the existence of the leaked document, but page 66 of the publicly available document states:

“We would be open to variations in the ratio of first to standard class accommodation…We would be unlikely to consider any variation which delivers a worsening of passenger experience”,

which I believe third class would. Will he confirm that no third class will be allowed under the franchise?

[Stephen Hammond]

The hon. Lady is dancing on a pinhead. I have made it clear that in the document we will not and have not specified a third class. I would have thought that she and her colleagues supported utilising first-class coaches, so that more passengers can have a better experience.

I listened with interest to the hon. Member for Edinburgh North and Leith (Mark Lazarowicz) who told us that it was impossible to argue that the decline in ridership on the railways between the early 1900s and the 1990s was due to public ownership, or that the benefits of privatisation, which has seen ridership double, could be established. He then proceeded to use exactly those arguments for the east coast main line, which was slightly surprising.

I listened carefully to the hon. Member for Edinburgh East (Sheila Gilmore) who referred to securing new rolling stock under the public sector. The inter-city express programme has been running for some time. The trains will be procured by Government and will also be used by Great Western, and that is currently being operated by First Great Western. To suggest that the IEP process was not running beforehand was wrong.

It is equally odd that some hon. Members sought to suggest that the Government have been panicked into the inter-city east coast main line refranchising. What they forget is that the franchise consultation had already been held prior to the west coast franchise being stopped. It had already been announced back in 2011 that the intention was to publish the invitation to tender in January 2013. To contend that this is a rushed privatisation—we may discuss the word “privatisation” in a moment—is simply nonsense.

East Coast Main Line

Sharon Hodgson Excerpts

Wednesday 5th June 2013 Westminster Hall

[Mrs Sharon Hodgson (Washington and Sunderland West) (Lab)]

I congratulate my hon. Friend the Member for Middlesbrough (Andy McDonald) on securing this important debate.

I also congratulate my hon. Friends the Members for Edinburgh East (Sheila Gilmore) and for City of Durham (Roberta Blackman-Woods) on leading a campaign that has widespread backing inside and outside Parliament. It is not surprising that it is so well supported; as we have heard, the facts speak clearly for themselves. By the end of this financial year, East Coast estimates that it will have returned about £800 million to the Exchequer since the line was nationalised. The net public subsidy in the past financial year was just 1% of turnover, compared with an industry average of 32%.

A recent report commissioned by the TUC reveals that the firms receiving the largest state subsidies spend more than 90% of their profits on average on shareholder dividends. Of those firms, the top five recipients received almost £3 billion in taxpayer support between 2007 and 2011, which allowed them to make operating profits of £504 million. However, more than 90% of that money—£466 million—was paid straight to shareholders.

[Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)]

It is also worth while pointing out that the taxpayer has been getting this money back from Directly Operated Railways in a context where the company has been able to operate only on a fairly short-term basis, because there is no certainty for the long term about the franchise. Is it not highly possible that, if the current operators had the security of knowing they were going to operate the railway system for a considerable number of years to come, they might make even better returns for the taxpayer and run the system even more efficiently?

[Mrs Hodgson]

I agree. That was a good point, and it was well made.

I am a regular user of the service, as are many Members, constituents and people across the north-east, and the improvements in service and punctuality have been plain to see. That is not to say that there are not occasional causes for complaint; of course there are, and we all know what they are—often, it is the toilets. However, the service has improved, without the need for the private sector ethos that we often hear about from advocates of privatisation.

In a written answer to my hon. Friend the Member for Newcastle upon Tyne Central (Chi Onwurah), the Minister said:

“The Government remains committed to benefitting from private sector innovation and operational experience in its railways.”—[Official Report, 22 April 2013; Vol. 561, c. 590W.]

Given the improvements since the line was nationalised and the low reliance on subsidy, which is 1% of turnover, as well as East Coast’s returns of £800 million to the national coffers, the private sector organisations running other franchises could learn a thing or two from Directly Operated Railways.

The east coast line is getting increasingly busy, and it needs constant investment in maintenance and capacity improvement. Incidentally, one way that we could improve capacity—I and other north-east Members recently met the Minister to make this case—would be to bring the Leamside line back into use in the north-east to take some of the freight off the main east coast line. The Minister and I have discussed that at length. The proposal would have the added bonus of providing the means to extend the Tyne and Wear Metro to Washington, in my constituency, which would bring great benefits to the town and its residents.

However those improvements are made, they do need to be made, and that will require money. The benefit of keeping the franchise in public ownership is that that investment can be made by ploughing the generous profits generated—£800 million so far—back into the service, instead of giving them to overseas shareholders. Our network sees hundreds of millions of pounds disbursed to shareholders of private companies every year, despite the fact that those companies receive state subsidies to keep going. East Coast’s performance over the past three years has shown us the folly of that model. Why send profits generated from British passengers to foreign owners abroad, when some of those owners are subsidising rail fares in their own countries? We could and should use those profits here to improve our services and to help keep our fares down.

The East Coast arrangement is not hurting my constituents; it is working. It is not broken, so it does not need fixing—apart from the toilets, of course. If anything, based on the performance of East Coast, it would be desirable to see more of our key lines under public control. What the service needed was the stability to carry on planning for the future and improving performance and service standards further, while maintaining the return to the taxpayer. What it has, however, is the uncertainty caused by being put out to the market once again, where it may even be the subject of a tender by the company that failed to run it properly last time. That would cost taxpayers millions.

Given the shambles over the west coast line, I would have thought that the Government would at least leave a successfully operating line well alone—

[Dr William McCrea (in the Chair)]

Order.

--- Later in debate ---

[Hugh Bayley]

They would, and rightly so but they should also do so for a public sector operator.

I was on the Public Bill Committee—they were called Standing Committees in those days—that considered the Railways Act 1993. We were told that the railways had to be privatised because there would then be masses of new private sector investment in the railways. Sadly, that has not happened. I totted up the investment for the first two years in which the Government were in power: 2010 and 2011. Network Rail invested more than 10 times as much as all the private rail companies put together. It invested £9,739 million and the private sector invested £780 million. In truth, the jury is still out on whether rail privatisation works.

[Mrs Hodgson]

Will my hon. Friend give way?

[Hugh Bayley]

No; I think I will make progress, because I have only a few minutes.

I ask the Minister to consider whether it makes sense to run a private franchise on the west coast main line, which he is obliged to do—Richard Branson will sue him if he does not—and continue, for a full franchise period of 15 years, a public sector operation on the east coast main line, and to compare like for like. Which delivers better value for money to the Government, gives a better service to the public, and does better at reducing fares? I put a final challenge to him: let the Government follow what the passengers want—put out a leaflet on East Coast trains and ask the public whether they want refranchising or to stick with East Coast. If they go for East Coast, give East Coast a whirl.

Several hon. Members rose—

Oral Answers to Questions

Sharon Hodgson Excerpts

Thursday 28th June 2012 Commons Chamber

[Mr Speaker]

I hear the Secretary of State’s message but we have a lot of questions to get through.

[Mrs Sharon Hodgson (Washington and Sunderland West) (Lab)]

6. What steps her Department is taking to improve cycling safety.

[The Parliamentary Under-Secretary of State for Transport (Norman Baker)]

Last year I set up the cycling stakeholder forum, which comprises representatives from cycling groups, motoring organisations and local authorities. A sub-group has been established to look specifically at safety issues. Good progress is being made on coming up with ideas and actions to improve cycle safety. Earlier this week I announced a £15 million fund to improve safety for cyclists outside London by tackling dangerous junctions. This is in addition to the £15 million fund awarded to Transport for London in March for the same purpose.

[Mrs Hodgson]

Figures from his Department and independent analysis have shown that more cyclists are killed in collisions with heavy goods vehicles than any other kind of vehicle. Will the Secretary of State therefore stop the trial of longer HGVs that her Department has enacted and give serious consideration to the proposals from the cycling stakeholder forum for a proper plan to improve cyclist safety and to increase cycle use?

[Norman Baker]

I have already referred to the cycling stakeholder forum, which met yesterday and which I attended. We are looking at safety issues very seriously, as the hon. Lady would expect. I do not think it is a question of how long lorries are. The particular issue with HGVs is about lorries turning left and catching cyclists on the inside. That is one reason why I have now given permission for all local authorities across the country to install Trixi mirrors to pick up those manoeuvres. It is also why the Under-Secretary of State for Transport, my hon. Friend the Member for Hemel Hempstead (Mike Penning), is looking at issues relating to the information available to the driver in the cab.

Cost of Living

Sharon Hodgson Excerpts

Wednesday 16th May 2012 Commons Chamber

[Malcolm Wicks]

It could well be a factor. Certainly I acknowledge the hon. Gentleman’s main point that, although we often talk about the childminder or the nursery or the crèche, as I have been doing today, the role of the extended family—granny and granddad—can be vital.

To support my case that we need to take parental leave far more seriously, let me cite a recent, or fairly recent, pamphlet published in 2008 and written by a number of people, including Catherine Hakim. The publisher was Policy Exchange. Politically I am widely read, or rather the Library has briefed me widely. Catherine Hakim and her colleagues produced some interesting data. When parents were asked what, ideally, they would like, they did not all say “More child care, more child care”. Many simply wanted to spend more time with their own children when they were tiny. According to the report,

“Overall, a two-thirds majority of working mothers of pre-school and school-age children would prefer to work fewer hours or not at all, even if better childcare were available. Given the choice, what mothers prefer is to be at home with their children, not more and better childcare”.

That is an interesting finding, but I would qualify it by saying that we must not turn this into a debate about how mothers should be at home, as we are in danger of doing. Many mothers have educational qualifications that are superior to those of their partners, and careers that are blossoming. The debate about parental leave is not just about mums, but about dads as well. Too often in family and social policy, we talk about families as if they were just women and children and do not talk enough about fathers.

[Mrs Sharon Hodgson (Washington and Sunderland West) (Lab)]

Will my right hon. Friend give way?

[Malcolm Wicks]

I will give way to all sorts of people shortly.

We need to draw on some of the experience of Sweden and other Scandinavian countries. We need parental leave which—almost in a social engineering way—enables and encourages dads as well as mothers to take parental leave.

--- Later in debate ---

[Malcolm Wicks]

That is good, and when we see the Government’s proposals we can debate whether they go far enough and what our long-term ambitions might be.

On parental leave, perhaps we should be thinking of several years, rather than shorter periods. However, with dads in more and more families playing a much greater role than their own dads did, we must concoct the policy so that we give them, as well as the mothers, maximum encouragement to take parental leave.

The Secretary of State’s intervention—on an aspect of nuclear family policy, rather than nuclear policy, which he is shyer about—made a point that Government Members need to understand. Getting the right balance between work and family life—not just for parents but for carers of elderly people and many others—is not a distraction from economic growth; rather, it enables us to have a modern work force that will help promote growth.

[Mrs Hodgson]

My right hon. Friend is making an excellent and thought-provoking speech, especially on child care. Only one in five women earn more than their partners, the effect of which on the ability to take shared parental leave we should consider.

[Malcolm Wicks]

That raises the serious and fundamental question of why this inequality still exists. It also raises a more practical question, which I think my hon. Friend was implying: how can dads who are bringing in the great majority of the family bacon take much in the way of parental leave?

[Mrs Hodgson]

indicated assent.

[Malcolm Wicks]

I understand that point, which raises the difficult issue of what financial allowance we can make for parental leave. We need to get to grips with this.

I turn to an issue that the House has discussed before. I put it to the Government that their policy on child benefit is a case study in unintended consequences—and I am being kind here. I speak as a great advocate of child benefit, which, along with the family allowance before it, has had its supporters on both sides of the House, right back to the pioneering work of Eleanor Rathbone, who wrote such important works on the importance of what she called family endowment. This Government’s decision to end the universal nature of child benefit by withdrawing it from people who earn above a certain income is a catastrophic strategic decision. It is a move towards potential means-testing that we need to be aware of.

--- Later in debate ---

[Mrs Sharon Hodgson (Washington and Sunderland West) (Lab)]

The cost of living is an excellent theme for our debate on the Queen’s Speech, because alongside and intertwined with the strength of the economy and the availability of jobs, it goes to the core of what ordinary people are most concerned about right now, as I see in my inbox and hear from constituents on the doorstep and in my surgeries. Frankly, I am amazed that the Secretary of State was able to speak for so long, given the lack of action to help with the cost of living in the Her Majesty’s Gracious Speech.

I think the Queen’s Speech was best described by the deputy political editor of The Daily Telegraph, as

“a ragtag bag of second-order legislation and moderate tinkering, partly to address some quite important issues, but also simply to look as if they’re doing something.”

There are one or two Bills that I am pleased to see and will discuss later, but where was the meat? Where was the creativity? Where were the drive and ambition to get this country out of the first double-dip recession in almost 40 years? Nowhere. There was no change, no hope, and Ministers still act like they have no idea of the impact of their policies on the lives of my constituents. Quite frankly, they just do not have any ideas.

One of the biggest cost of living pressures that working families are feeling is child care. According to the Daycare Trust’s annual child care costs survey, the average price of nursery provision in the north-east has increased by 7.5% over the past year, but the cost of out-of-school child care has increased by more than 25%. That is but one part of the triple whammy that parents are facing, because at the same time the help they receive from the Government has been cut by 12.5%, and child care places are becoming scarcer as the money councils get to ensure availability and affordability is slashed and de-ring-fenced, and private nurseries face a daily struggle to stay afloat, due to the increasing number of women who are leaving the work force or finding alternative care, coupled with increased costs and cuts to child care tax credits.

Add to all that this year’s changes to working tax credit eligibility, which affect an estimated 355 families in my constituency, and ever-rising costs of petrol and public transport, and the result is a situation where the cost of working is forcing parents, particularly women, out of work at an alarming rate. After last year’s cuts to child care tax credits, about 44,000 parents stopped claiming. Many will have left work because continuing just did not make financial sense any more. Last month’s changes will no doubt exacerbate that worrying trend. Where were the measures in the Queen’s Speech to help? Again, nowhere.

The cost of child care is normally higher for children who are disabled or who have special educational needs. In addition, places for those children are scarce: according to the Daycare Trust, only 12% of councils have sufficient places to meet local need. A children and families Bill was announced in the Queen’s Speech; I welcome that and look forward to working on it when it comes before the House. I am delighted that, as part of that debate, the House is to discuss how we can improve outcomes for children and young people with special educational needs and disabilities. Where, though, is the commitment to increase the availability and affordability of child care for children with special educational needs and disabilities, to allow their parents to hold down a job, which is not only important financially, but provides much needed respite in some cases?

The Government have also said that, in that Bill, they will continue Labour’s reforms on flexible working, allowing mothers to transfer some of their maternity leave to their partner. There are of course social benefits to that, but where are the financial benefits for families? Research commissioned by my right hon. and learned Friend the Member for Camberwell and Peckham (Ms Harman) back in 2010, when she was Minister for Women and Equalities, showed that only about one in five women earned more than their partner, although the number is thankfully rising. With that in mind, transferring statutory leave will come down to a practical economic decision for many families. It will be a luxury that most cannot afford, especially if the Government continue to do nothing to mitigate the rising cost of living.

Colleagues have mentioned a number of other pressures on household budgets, and I will echo their points if I have time. Those pressures include rising energy bills, rising shopping bills exacerbated by last year’s rise in VAT, which took £450 out of family budgets at a stroke, and the rising cost of fuel and public transport, about which we have heard quite a bit.

One particular problem that has been raised with me, and mentioned in the media in the past few months, has been banks hiking up mortgage interest rates while the base rate remains at a record low. Mr Edward Cairns of Washington called my office to complain that on the same day as the Royal Bank of Scotland announced a total bonus pool of £785 million for 2011, despite the fact that the bank had made an overall loss of £2 billion, he had received notification that the interest on his mortgage was being increased by 0.25% to 4.25%. I wrote a letter to Stephen Hester asking him to explain that hike and the fact that it coincided so insensitively with the announcement of the huge bonus pot. Unfortunately, I am yet to receive a response from Mr Hester, so I also wrote to the Chancellor to see what he was going to do about it. I received a letter back from the Financial Secretary to the Treasury saying, in a nutshell and in a very polite way, absolutely nothing.

RBS is a bank in which Mr Cairns, as a taxpayer, has an 84% stake, yet it and other banks are needlessly hitting people like him in the pocket while their executives are being rewarded for failure. That is bad news not just for consumers but for the Government.

[Robert Flello (Stoke-on-Trent South) (Lab)]

I am sure my hon. Friend is aware that in the letter that Halifax sent out to mortgage customers, it stated that the reason why it had increased its rate was the parlous state of the economy and the recession born out of No. 10.

[Mrs Hodgson]

Very interesting. I hope that Ministers are listening and that my hon. Friend’s point will be fed back.

Banks putting their standard rates up means that average interest rates increase, so the amount that the Government have to pay out in support for mortgage interest also increases. It also means that people have less disposable income to spend in shops, pubs and restaurants, so tax receipts are hit as well. Did the Queen’s Speech do anything to address that worrying trend? No, it did not.

What my constituents wanted from the Queen’s speech was a sign that this Tory-led Government had listened to the message that had clearly been sent to them through the ballot box on 3 May. They wanted a change of direction and some hope for the future. They actually wanted what Labour is offering—a fair deal on tax, instead of a great deal of tax being given back to the wealthiest few; a fair deal on energy, wresting power back from the big six and ensuring that pensioners get deals that allow them to eat as well as to heat their homes; a fair deal on transport, reining in the constant price hikes by train operators; a fair deal for consumers, stopping rip-off charges and practices by unaccountable companies, including payday lenders and secondary ticketing websites; and, above all else, a fair deal on jobs, getting young people in my constituency and others involved in working our way out of the recession that this Government have created. They did not get any of that. It was just more of the same from an out-of-touch and incompetent Government.

Ministers need to listen to Paul Dixon, who lost his seat on 3 May, before which he was the only remaining Lib Dem on Sunderland city council. He said that the coalition Government need to open their eyes, take a good look and realise the damage they have done. I agree with Paul, but the Government need to start putting it right. I hope they do so sooner rather than later, or else they should step aside and allow Labour to do so.