Oral Answers to Questions

Simon Burns Excerpts

Thursday 12th September 2013 Commons Chamber

[Mr Iain McKenzie (Inverclyde) (Lab)]

6. What his policy is on the privatisation of InterCity East Coast rail services; and if he will make a statement.

[The Minister of State, Department for Transport (Mr Simon Burns)]

My right hon. Friend the Secretary of State announced the Government’s programme for rail franchising in March. This included the intention to return the InterCity East Coast franchise to the private sector by February 2015, and this remains our policy.

[Mr McKenzie]

Why does the Minister continue to claim that the only way to get investment in the east coast main line is through privatisation, when he is well aware of the planned upgrade and the new generation of inter-city trains, both paid for by the taxpayer?

[Mr Burns]

Because, as I would hope the hon. Gentleman appreciates, the purpose of Directly Operated Railways is not to run a railway ad infinitum; it is a short-term measure when a problem arises with a franchise. He is absolutely right that as part of the record-breaking investment in our rail infrastructure we are investing in the east coast main line—as we are doing in the west coast main line and other lines— because that is the way forward. With the innovation and impetus of the private sector and a private sector franchisee, the maximum benefits can be ensured from state and Government investment.

[Andy McDonald (Middlesbrough) (Lab)]

Why have the Government reordered the franchising timetable, and what is the justification? The east coast main line timetable has been accelerated way out of order. What is the cost to the taxpayer?

[Mr Burns]

The reason for the change in the timetable is the unfortunate episode with the west coast main line—[Interruption.] I said “unfortunate”. Following the Brown inquiry, we redrew the franchising programmes and took his advice that the west coast main line and east coast main line franchises should not be done at the same time. That is why we are pressing ahead with putting the east coast main line franchise back into the private sector in February 2015.

[Maria Eagle (Garston and Halewood) (Lab)]

The Minister knows that his decision to reorder the franchising timetable just to enable him dogmatically to flog off a service that is working well has required him to renegotiate extensions to other inter-city contracts. Can he confirm, therefore, as a result of his negotiating skills, how much money he is requiring Virgin Trains to pay to the Government next year?

[Mr Burns]

I do not think the hon. Lady fully appreciates the role of DOR, which is not to run a franchise ad infinitum but to do so as an emergency measure. We have made it plain, following the Brown inquiry and recommendations, that it is best for the private sector to run the railways, as was always intended under the legislation, and that is why we are pressing ahead.

[Maria Eagle]

I am disappointed that the Minister does not know what he has negotiated, but I can tell him that Virgin Trains is paying £94 million, which, according to the independent rail regulator, is a staggering £64 million less than it paid last year. As his own Department’s figures reveal that he could have ended above-inflation fare rises next year for a similar sum, is it not a disgrace that passengers face fare rises of up to 9%, adding to the cost of living crisis, as a direct result of his decision to pursue this costly and unnecessary privatisation?

[Mr Burns]

The hon. Lady forgets to mention that to take into account the economic situation and economic mess that we inherited from her Government, we have provided help to fare payers by reducing the average formula from RPI plus 3% to RPI plus 1%. She selectively chooses the figure of a 9% increase—an extreme increase—but that will arise in a very small number of instances, because the formula calculates an average increase. She also forgets to mention those fares that have gone down rather than up.

[Graham Jones (Hyndburn) (Lab)]

7. What his future plans are for transport infrastructure in north-west England; and if he will make a statement.

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[Toby Perkins (Chesterfield) (Lab)]

8. What assessment he has made of the potential effect of High Speed 2 on economic growth in a) Chesterfield, b) Derbyshire and c) the east midlands.

[The Minister of State, Department for Transport (Mr Simon Burns)]

Yesterday, HS2 Ltd published a report by KPMG evaluating the potential impact of HS2 on productivity and business location. The report estimates that HS2 could generate productivity benefits to the Derby-Nottingham city region, which includes Chesterfield, of between £1.1 billion and £2.2 billion per year—equivalent to between a 2.2% and 4.3% increase in total local economic output within five years of opening.

[Toby Perkins]

I am grateful to the Minister for that answer. Many of us who recognise that there will be significant economic benefits to the Chesterfield and Derbyshire area, and who support the principle, remain concerned that the current planned route could have very negative impacts on projects such as the Chesterfield canal and the junction 29A enterprise zone. What reassurances can the Minister give to people who do not want the economic benefits of HS2 to undermine other existing economic projects in the region?

[Mr Burns]

We do not wish or expect there to be any undermining of other projects, but I fully appreciate the hon. Gentleman’s concerns and I hope he is reassured that the matter is out to consultation, so he and others will have a full opportunity to make their case before any final decision is taken.

[Mr Tim Yeo (South Suffolk) (Con)]

15. Will my right hon. Friend emphasise that one of the biggest but so far largely unrecognised benefits of constructing High Speed 2 is the enormous increase in capacity that it creates on existing lines, for the benefit of all regions?

[Mr Burns]

Yes, and I am very grateful to my hon. Friend for that, because what is important and what is on offer is that the High Speed 2 project will continue, but not at the expense of full and continued investment in the conventional rail network. As he is probably aware, in the next control period Network Rail and the Government are spending £37.5 billion to ensure that we improve, enhance and add to the existing network, as well as having high-speed rail.

[Mr Dennis Skinner (Bolsover) (Lab)]

Is the Minister aware that this so-called HS2—if it ever appears—is going to criss-cross the M1 about four times? What is he going to do about that? And as for Derbyshire and economic benefit, is he aware that there is not a single stop in Derbyshire?

[Mr Burns]

On the narrow geographical issue, I accept that Toton is not in Derbyshire, but it is halfway between Nottingham and Derby, so considerable benefits will be brought to both those communities and the surrounding area. We appreciate the point the hon. Gentleman is making about the M1, but, as he will appreciate, that matter is also out to consultation, so he will have an opportunity to input into it. However, I hope he welcomes the fact that, as a result of the station at Toton, there will be significant economic benefits to the whole region, which no doubt will please him.

[Daniel Kawczynski (Shrewsbury and Atcham) (Con)]

Does my right hon. Friend agree that this vital project will free up capacity on the existing network to ensure that towns such as Shrewsbury and Blackpool will be able to have connections to the capital?

[Mr Burns]

My hon. Friend makes a valid point. He is anxious to have a direct service on the conventional rail network from Shrewsbury to London and I have considerable sympathy and support for that. That is one of the reasons that high-speed rail is so important: it is capacity, capacity, capacity, to echo a former Prime Minister on another subject. That is what will be achieved, which will help areas such as Shrewsbury.

[George Freeman (Mid Norfolk) (Con)]

9. What plans he has to ensure that the roads spending programme supports a) the A47 and b) other routes of strategic regional and national economic importance.

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[Jason McCartney (Colne Valley) (Con)]

10. What progress his Department has made on procuring new rolling stock for the east coast main line.

[The Minister of State, Department for Transport (Mr Simon Burns)]

The Department is investing £2 billion in a contract to supply 227 vehicles from its InterCity Express programme to replace the class 125 fleet and 270 vehicles to replace the class 225 fleet on the east coast main line. It is working with Agility to conclude the financing of the deal.

[Jason McCartney]

On my journey to and from Yorkshire every week, I regularly see the peak-time overcrowding on the east coast main line. In fact, when I brought my daughters down to London in the last week of August, we had to sit on the floor on the journey down and back up to Yorkshire. Will my right hon. Friend confirm that we can have investment in HS2 and also in the east coast main line and that it is not a question of either/or?

[Mr Burns]

My hon. Friend makes a powerful point. He is absolutely right. I can categorically confirm, as I did to my hon. Friend the Member for South Suffolk (Mr Yeo), that it is not a case of either/or: it is both. We will continue to invest record amounts—billions of pounds—in the conventional rail network and proceed to build HS2, because it is in the national interest.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

Is not the Minister aware that my experience as Chair of a Select Committee for 10 years was that the best way to have policy is to base it on evidence? The east coast is under the shadow of the plans to build HS2. Five independent reports have said not only that it is a waste of money but that it will suck power and wealth from the northern regions to London and the south.

[Mr Burns]

I can only assume that the hon. Gentleman, despite his 10 years as Chair of a Select Committee, when he was presumably assiduous about detail, has not read the KPMG report that was published yesterday, which categorically shows that the exact opposite is the case and that significant benefits are coming north of London. London gets some benefit but noticeably less than the northern parts of this country. That is why local authorities in the north support the project so much.

[Mr Andrew Turner (Isle of Wight) (Con)]

11. What assessment he has made of the (a) cost and (b) reduction in service of ferries between the Isle of Wight and the English mainland; and if he will make a statement.

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[The Minister of State, Department for Transport (Mr Simon Burns)]

As my hon. Friend is aware, Network Rail is currently undertaking an electrification study, looking at all routes, including Hastings to Ashford, to identify potential candidates for electrification, which could be carried out in the next rail control period from 2019 to 2024. Any scheme would have to demonstrate a business case before being considered, but would then be given full consideration.

[Yvonne Fovargue (Makerfield) (Lab)]

Three years on from the axing of Cycling England and its £60 million annual budget, this Tory-led Government promised £148 million for cycling. That has turned out to be an average of £38 million per year until 2016, with local authorities expected to find the rest. In comparison, £28 billion is planned to be spent on roads. Does the Minister really believe that this is the right proportion and that this Government really are the most pro-cycling ever?

[Eric Ollerenshaw (Lancaster and Fleetwood) (Con)]

T4. Will the Minister confirm that northern commuters on the trans-Pennine routes are still in line to benefit from the promised 40 extra carriages, and will he continue to look into increasing capacity on those northern commuter routes?

[Mr Burns]

I am delighted to confirm that commuters on the trans-Pennine express are in line to benefit from increased capacity provided by the extra 40 carriages to be introduced on the Manchester to Scotland route and the reallocation of diesel trains. The new electric trains are scheduled to enter passenger service between December 2013 and May 2014. I have no doubt that this will bring benefit to my hon. Friend’s constituents and others along the line of route.

[Jeremy Corbyn (Islington North) (Lab)]

T7. Will the rail Minister look seriously and urgently at the situation at Finsbury Park station, which is jointly run by Transport for London, London Underground and Network Rail? There are welcome new platforms for the overground but there is no step-free access for the underground. The station is the busiest outside central London and it is dangerously overcrowded at many times. The Mayor is proposing changes from 2017. That is too late; we need them now.

[Mr Burns]

I will certainly look carefully at what the hon. Gentleman has said. I will consult the Under-Secretary, my hon. Friend the Member for Wimbledon (Stephen Hammond), and Transport for London. I hope that we can deal with this as successfully as we did when the hon. Gentleman and I last had a meeting in the Department for Transport, when we resolved another issue extremely satisfactorily.