(9 years ago)
Commons ChamberMr Speaker, I will try to make some progress with my speech, if I may. Over 150 Members wish to speak, and long speeches from the Front Benches will take time away from the Back-Benchers’ speeches. The aim must be to establish a broad-based Government in Syria who have the support of the majority of their people, difficult as that is to envisage at the present time. Such a settlement—
No. Such a settlement could help to take back territory from ISIL and bring about its lasting defeat in Syria, but—
Thank you, Mr Speaker. The point I was making was that ultimately, the solution has to be brought about by all the people of Syria themselves. On that, surely, we are all agreed. The Government—
I thought I had made it clear, and that the Speaker had made it clear, that at the moment I am not giving way; I am really sorry, but I am not. Okay? The Government’s proposals for—
(11 years, 3 months ago)
Commons ChamberI 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.
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.
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.
(11 years, 6 months ago)
Ministerial CorrectionsTo ask the Secretary of State for Transport what the estimated level of (a) public subsidy, (b) premium payments and (c) revenue support will be during the contract extension to September 2014 agreed between his Department and c2c Rail Ltd for rail passenger services on the Essex Thameside line.
[Official Report, 3 June 2013, Vol. 563, c. 975W.]
Letter of correction from Simon Burns:
An error has been identified in the written answer given to the hon. Member for Islington North (Jeremy Corbyn) on 3 June 2013.
The full answer given was as follows:
Contracted subsidy for the interim franchise agreement is c.£2.4 million. A profit share mechanism in place, which will capture any outperformance in revenue, thereby lowering subsidy requirement. Subsidy and premium payments are published regularly on the Office of Rail Regulation website.
The correct answer should have been:
Contracted subsidy for the interim franchise agreement is c.£1.7 million. A profit share mechanism in place, which will capture any outperformance in revenue, thereby lowering subsidy requirement. Subsidy and premium payments are published regularly on the Office of Rail Regulation website.
To ask the Secretary of State for Transport what the total value is of the contract extension to September 2014 agreed between his Department and c2c Rail Ltd for rail passenger services on the Essex Thameside line.
[Official Report, 5 June 2013, Vol. 563, c. 1198W.]
Letter of correction from Simon Burns:
An error has been identified in the written answer given to the hon. Member for Islington North (Jeremy Corbyn) on 5 June 2013.
The full answer given was as follows:
Contracted subsidy for the interim franchise agreement is c.£2.4 million. A profit share mechanism is in place, which will capture any outperformance in revenue, thereby lowering subsidy requirement. Subsidy and premium payments are published regularly on the Office of Rail Regulation website.
The correct answer should have been:
(11 years, 8 months ago)
Commons ChamberI beg to move,
That this House takes note of European Union Documents No. 5855/13, a Commission Communication: The Fourth Railway Package-completing the single European railway area to foster European competitiveness and growth, No. 6012/13 and Addenda 1 and 2, a Draft Regulation on the European Union Agency for Railways and repealing Regulation (EC) No. 881/2004, No. 6013/13 and Addenda 1 and 2, a Draft Directive on the interoperability of the rail system within the European Union (Recast), No. 6014/13 and Addenda 1 and 2, a Draft Directive on railway safety (Recast), No. 6017/13, a Commission Report on the progress made towards achieving interoperability of the rail system, No 6019/13, a Commission Report on the profile and tasks of other train crew members, No. 5960/13 and Addenda 1 to 5, a Draft Regulation amending Regulation (EC) No. 1370/2007 concerning the opening of the market for domestic passenger transport services by rail, No. 5985/13 and Addenda 1 to 7, a Draft Directive amending Directive 2012/34/EU establishing a single European railway area, as regards the opening of the market for domestic passenger transport services by rail and the governance of the railway infrastructure, and No. 6020/13, a Commission report on the implementation of the provisions of Directive 2007/58/EC on the opening of the market of international rail passenger transport accompanying the Communication on the fourth railway package; supports the Government’s aim of ensuring any resulting measures are appropriate, encourage competition and help to deliver a level playing field across the EU; and further supports the Government’s view that any such measures should be evidence-based, proportionate and reduce or at least minimise the regulatory, administrative and cost burden for industry.
I welcome the fact that the European Scrutiny Committee has referred this subject to the House for debate. I also thank and pay tribute to the Transport Committee for its report on the fourth railway package, a number of whose conclusions and recommendations the Government support.
The fourth railway package is a major European Union legislative proposal involving three directives and three regulations. As Members will appreciate, we are still considering the implications of the proposals in consultation with other Departments, so all I can give the House this afternoon is our initial position.
The United Kingdom has one of the most liberalised rail networks in the EU, which is why the Government support further opening of the domestic EU public passenger transport markets. However, we want to ensure that the proposals that are implemented as part of the package are flexible enough to work within the UK’s public passenger transport structure, and are compatible with our plans for rail reform. The Transport Committee made that point in its report.
Evidence garnered by the European Commission indicates that about 40% of passenger routes in the EU are accessible to new operators. That implies that significant market opportunities could arise both for UK rail firms and for those in the rest of the EU if the proposals pass into European law. There would also be potential for expansion of the rolling stock leasing sector. The new infrastructure manager separation provisions could give freight operators benefits as well if they further open up access in practice, reducing the chances of discriminatory behaviour in some member states. In any event, I can assure the House that the proposals will be the subject of consultation with stakeholders and considerable negotiation within the European Union. We will continue to engage with the Commission, the European Parliament and other member states to ensure that any concerns are addressed in the final texts.
I am listening to the Minister’s comments with interest. Would these proposals force the publicly owned railway systems that exist in some parts of Europe to be handed over to the private sector, or would they allow the public sector to participate on a level playing field?
I hope I can give the hon. Gentleman reassurance on that, if that is what he is seeking. It is not a question of forcing any railways in any country in the EU to move from one position to another, although the main thrust of the package is to create a greater liberalisation of the market for the benefit of both taxpayers in the EU and passengers.
(12 years ago)
Commons ChamberIt is a pleasure to follow my Friend the Member for Derby North (Chris Williamson). I pay tribute to him for the incredible campaign he has run in support of the workers in his constituency and the skills that have been brought to the country by the decades—over a century—of train manufacturing in Derby. It would be a crime if we lost that. The danger is that, unless the Bombardier contract is issued, there will be further job losses and further loss of train-making skills in this country.
We do not understand or value enough the heritage of the rail industry in this country, the skills involved in train manufacture and railway development, or the future of the industry. Following the closures, we have around 10,000 miles of track. We have a programme of railway network expansion, and more people travel by train than at any time since the second world war. The majority of the public who have access to railways prefer to use them—there is no question about that.
If we involve ourselves in a procurement process that specifically encourages sustainable, local-ish or UK-based employment, we will develop our industrial base and provide great opportunities for railway expansion in this country and other places. However, sadly, the model of privatisation adopted by the Conservative Government in the 1990s not only broke up our railway system but handed all the rolling stock to rather dubious leasing companies. Huge profits were made as a result, but 10 years into privatisation the Department for Transport’s procurement policies have moved much more into a totally market-based international comparator system rather than the system used for Transport for London, which has deliberately sought to develop UK-based employment, and fair wages and employment practices and so on.
If privatisation has been as bad as the hon. Gentleman describes, why, since privatisation, have the number of journeys taken and the number passengers doubled, and why, in 13 years in government, did Labour not seek to reverse it?
I had a discussion in 1997 with the then Transport Secretary, Lord Prescott, in which I suggested that we would serve ourselves well if we took the railways back into public ownership. In fact, our discussion took place very close to where the Minister sits now. We were standing next to the mace during a Division—it was an historic moment. His reply was, “We haven’t got the money for that kind of thing. We can’t afford it. It would cost too much”, but the figures show that we are putting more money in subsidy into the private sector-run railways than we ever did into British Rail in the days of public ownership—and the private companies are making considerable profits. The increase in passenger numbers and train services is welcome, as is public investment in railways, but if, for example, we put £8 billion into the west coast main line upgrading, the public should gain the benefit rather than Virgin Trains or another train operating company making a considerable profit.
I support the points made by my Friend the Member for Derby North on fair employment practices. I hope the Minister can give us some good news. I hope he is not befuddled by Siemens’s claim that it is financially sustainable, because a company that owns its own bank is quite likely to claim that—the two things tend to go together—but instead will consider the huge skill base and traditions in Derby. He should also think forward to the electrification programme and the new rolling stock that will be needed in five, 10, 15 and 20 years’ time. We will have problems if we allow our manufacturing capacity to disappear.
My Friend the Member for Hayes and Harlington (John McDonnell), who is in his place, has supported the railway cleaners around the country because of the problems they face. I hope the Minister spares a thought for them. In the midst of all the money that goes into the railway system and the profits that are taken out, some people working for distant contract cleaning companies and others are appallingly paid and badly treated, but nevertheless do important and valuable jobs. Will he say he is in favour of a living wage for everyone working in the railway industry as an absolute basic, and in favour of companies employing station and cleaning staff far more directly?
Virgin Trains has apparently been given a contract to continue running its service because of the collapse of the train operating company tendering process a few months ago. I have five brief questions for the Minister, and I hope he will help us. What discussions were held in the EU prior to awarding the 23-month west coast main line contract to Virgin Trains? Is a copy of the new agreement available? Will existing staffing levels and catering facilities be protected? What taxpayer subsidy will be paid to Virgin for the duration of the contract? Finally, what non-taxpayer or fare payer-supported investment will Virgin Trains make during the 23-month contract? We have reached a pretty pass. The incompetence of the process resulted in a gap, which would have been the ideal opportunity to return the service to public ownership and run it, which is what happens on the east coast main line—a very good service runs on the east coast main line as a result. The east coast main line is a ready-made example of running an effective, publicly owned railway system.
The Minister will not be surprised that my last point is a local one—I have often spoken of the need for a wider system of electrification. I welcome the Government’s announcement that the midland main line and the Great Western service will be electrified, and that there will be an electrified service in Wales. That is very good indeed. I have raised many times the question of the north London link. The Barking to Gospel Oak line is not electrified, which means that electrically hauled freight services from Felixstowe or Harwich must change to a diesel-hauled locomotive, or that the freight must be diesel-hauled all the way through. Proposals for the electrification of the line have been made and costed, and the Secretary of State assured me that the Department was considering that again—he also promised to meet me and a delegation of north London MPs in that respect. Electrification would make London Overground more efficient and effective and be far more environmentally sustainable for heavy-hauled freight that currently uses the line.
I welcome this short debate on transport. Given the shortness of time I have and the wide ranging number of questions raised, particularly by the hon. Member for Islington North (Jeremy Corbyn), I assure hon. Members that if I do not manage to cover all their points, I will write to them.
To begin with, I should like to deal with two specific issues, the first of which was raised by the hon. Member for Sedgefield (Phil Wilson). As he will accept—he referred to this from time to time during his comments—tough decisions have had to be taken across the board because of the economic deficit we inherited, and support for bus services could not be exempt. This has meant not only getting the best value for every pound of taxpayers’ money spent, but prioritising the spending that can best support growth, jobs and prosperity. That is one of the reasons transport came out of the spending review in a much stronger position than most people expected.
I recognise that public transport is, as the hon. Gentleman eloquently pointed out, important for the sustainability and independence of rural communities. Decisions such as where to run services, the frequency of services, the type of vehicle used and the fares charged are mainly a matter for the commercial judgment of the operator concerned. However, where there is not enough demand for a bus route to be commercially profitable in its own right, local authorities do have powers to subsidise bus services. It is essentially a matter for these individual authorities to decide which services are most appropriate for support in their respective areas. These could be traditional bus services or other, more flexible options such as the Link2 service in Durham—a bookable dial-a-ride bus for people making local journeys of up to five miles for which there is no other suitable bus—and the Access Bus scheme, which provides a similar service for people with limited mobility.
It is for local authorities, working in partnership with their communities, to identify the right transport solutions that meet the economic and environmental challenges faced in their areas and deliver the greatest benefits for their communities. It is heartening to note the proactive role that Darlington and Durham councils have taken to engaging with local people, for instance through the area action partnership boards set up by Durham county council in 2009 as a key way of listening to and working with communities, and the Darlington community partnerships, led by residents, working in partnership with the local authority and other bodies, which take a lead in regenerating their local neighbourhoods. I would also encourage smaller communities such as Hurworth, Sadberge, Middleton St George and Brafferton to continue their excellent work with the Community Transport Association to secure a reliable and affordable local transport network service.
In the past year, the Government have provided £20 million of new funding for distribution to rural local transport authorities in England, of which around £400,000 in total has been allocated to Durham and Darlington councils to support and kick-start the development of community transport services in their areas. In addition, the local sustainable transport fund has provided both areas with a combined total of more than £6 million, specifically for transport related projects.
For reasons that we are all aware of, times are tough and we have to be careful with our money, making sure that we get the best value. But I am pleased about the work that has been done locally by local communities and local authorities in the hon. Gentleman’s area to seek to develop the best forms of sustainable transport with the best value for money available.
I turn now to the final point raised by the hon. Member for Islington North, about the Gospel Oak to Barking scheme, which he has rightly raised on many occasions in the House. I recognise the case for electrification of that line at the same time as we electrify the strategic electric spine route from Southampton to Yorkshire. Transport for London has said it is prepared to pay a share of the Gospel Oak to Barking electrification costs, which I welcome, but the cost is very high—approximately £90 million for 12 miles of railway through suburban London.
We will work with Network Rail, Transport for London and rail freight operators over the coming year to see whether electrification costs might be reduced and to explore ways of funding. The national rail funding for the five years to 2019 has been committed on our strategic priorities, but if further funding can be found and the business case continues to be robust, I would welcome adding another 12 miles of railway to the 850 route miles we have already funded and authorised for electrification this decade. Either my right hon. Friend the Secretary of State or I would be happy to meet the hon. Gentleman and a delegation of Members from north London if that would be useful.
I thank the Minister and I look forward to having such a meeting so that we can, I hope, make progress to electrify that last bit of the line.
In that spirit, I hope that any meetings we have would be positive so that we could make progress.
I now turn to the contribution from the hon. Member for Derby North (Chris Williamson) about rail procurement and Bombardier. The coalition Government are committed to continuing to invest in rail, building on its success and facilitating future economic growth. As he knows, we are investing £18 billion in this spending review period alone on a programme of rail improvements as large in scale as anything seen since the Victorian era. I am aware that the hon. Gentleman, as well as my hon. Friends the Members for South Derbyshire (Heather Wheeler), for Mid Derbyshire (Pauline Latham), for Erewash (Jessica Lee) and for Amber Valley (Nigel Mills) have been active campaigners on behalf of Bombardier, which has a key role in Derby’s economy.
Therefore, I am pleased to be responding to this debate shortly after Southern has announced its intention to exercise an option for 40 additional rolling stock vehicles to be delivered by Bombardier in 2014. Furthermore, Southern is working with the Department to develop proposals for a potential competitive procurement for 116 new vehicles, including options for further vehicles. Ministers expect to be able to make a further announcement on this matter shortly. Bombardier is also among the shortlisted bidders for the Crossrail rolling stock procurement.
These procurements offer Bombardier and other train manufacturers new opportunities to bid for work. The Thameslink rolling stock contract is complex, as the hon. Gentleman understands, and it introduces much greater responsibility for the train’s performance in service on the part of the train manufacturer and maintainer than is traditionally the case. Therefore it has—quite rightly— taken some time to get the details right. Siemens and its partners in Cross London Trains have been working very closely with the Department for Transport to reach commercial agreement on the Thameslink rolling stock project. I am pleased to say that there has been substantive progress in recent weeks and the Department has now reached commercial agreement on the key elements of the deal with the Cross London Trains consortium. Last night the Cross London Trains consortium published its information memorandum to potential funders.
This important milestone enables the next stage of the process of further engagement with the debt market to continue to put the necessary financing in place for the deal. Our target, once the necessary credit approvals have been secured, is to reach financial closure as soon as possible in the new year. I hope that hon. Members will appreciate the importance of the statement I have just made, which is crucial as part of the continuing investment in improving and enhancing the infrastructure and performance of our railways.
In passing, I note that the hon. Gentleman suggested that the same civil servants who were responsible for the franchising deal for the west coast main line were working on the procurement deals, but I can assure him that that is not the case. I hope that that reassures him.
Regarding the Crossrail rolling stock contract, we are clear that our priority is to secure the right train at the right price, through a strong and fair procurement competition. This competition is different from rolling stock procurements such as Thameslink that were launched by the previous Administration. It has taken account of the package of measures to reform public procurement announced in the 2011 autumn statement, and it also includes, for example, the commitment of £350 million of public investment to this £1 billion programme. Four bidders—Bombardier, CAF of Spain, Hitachi and Siemens—have submitted initial bids. Crossrail Ltd is responsible for the procurement and is currently assessing bids received at the end of October.