Transport Infrastructure (South of England)

Stephen Hammond Excerpts

Monday 17th March 2014 Commons Chamber

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

I congratulate my hon. Friend the Member for Gosport (Caroline Dinenage) on securing this debate. It follows on from an Adjournment debate that I was delighted to respond to last week when, as my hon. Friend pointed out, my hon. Friend the Member for Portsmouth North (Penny Mordaunt) made a number of salient points about transport infrastructure in the south of England. My hon. Friend the Member for Gosport clearly made the case tonight that this is a subject of great importance to her and her constituents, including businesses in the area. I am sure she will remember that when she launched her innovative suggestion that the HMS Daedalus site become an economic zone I was delighted to be with her and to support her on that first occasion, some 18 months ago. That campaign has been hugely successful and I shall comment on it later.

My hon. Friend the Member for Gosport is right that effective transport infrastructure is vital in supporting local communities, enabling people to access their workplace, and driving local economic growth, so it is right that we take time to debate these issues. She is right, too, to point out that, as many of us who are Members of Parliament for constituencies in London and the south of England know all too well, the south is not all leafy suburbs. As a man who was born and bred in Southampton, I am delighted that she raised the need for connections between Southampton and Portsmouth. They may have traditional rivalry in a number of things, but the links between the two great cities of the south need improving. I am pleased that the Government are clear that we need to invest in record amounts to maintain, upgrade and expand our road and rail infrastructure.

[Bob Stewart (Beckenham) (Con)]

I go to Southampton by train quite a lot and I totally support what my hon. Friend the Member for Gosport (Caroline Dinenage) says about the time that it takes to get to Southampton from London. If we had an express link, as suggested by my hon. Friend the Member for Portsmouth North (Penny Mordaunt), more people could get up to London and get more jobs, helping the depressed people of Portsmouth and Gosport.

[Caroline Dinenage]

I referred in my speech to the £90 million that Hampshire county council will ask the Solent LEP to make when it meets on Friday. That is all part of the scheme mentioned by the Minister, which is about looking at roads in the Gosport and Fareham area, including the A27 corridor, about which he has spoken. I very much hope that the Government will look very favourably on that bid.

[Stephen Hammond]

I obviously hear my hon. Friend’s plea. As she will know, a number of people will make such a plea.

I was going on to commend my hon. Friend, because the fact that the Solent LEP and Hampshire county council are working together will make their bid to the Government for a grant from this fund more powerful. From this Dispatch Box, as well as in writing and in one-to-one meetings, I have stressed to several colleagues that it is absolutely essential for the local economic partnership and the economic zone to work together, which will certainly achieve a higher priority in assessments. She is right that it is clear that a LEP’s agreement to a scheme ensures that it is most likely to be in the strategic economic plan, and although the process is competitive, it is of course likely that the strongest bids will receive the biggest slices of funding.

In conclusion, I again congratulate my hon. Friend on securing this debate. The powerful case that she has made tonight has reminded us of the importance of an effective transport network for the economy. As I have made clear, this Government are committed to, and have set out plans for, large-scale investments now and in the future to improve local and strategic networks both in rail and on the road and—importantly—across the whole of this country, including the south of England.

Question put and agreed to.

Vehicle Registration and Licensing (Northern Ireland)

Stephen Hammond Excerpts

Thursday 13th March 2014 Written Statements

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

Motorists in Northern Ireland have not had access to the same range and level of vehicle registration and licensing services as their counterparts in the rest of the UK. In previous statements we have announced the Department’s intention to address this issue. This led to a consultation on the future of vehicle registration and licensing services in Northern Ireland being carried out between July and September 2013.

I am today announcing that following a review of the responses to the consultation, I have decided in consultation with my ministerial colleagues that the full range of vehicle registration and licensing services will be available to motorists in Northern Ireland from July 2014. This will entail the centralisation of transactions at the Driver and Vehicle Licensing Agency (DVLA) in Swansea. The changes will for the first time allow motorists in Northern Ireland to take advantage of automated vehicle licensing, either online or by telephone. Northern Ireland motorists will also have access to additional face-to-face services at around 175 Post Office branches. The changes will also ensure that Northern Ireland motorists can immediately access new services, including direct debits for vehicle excise duty and enhanced online services, which will be introduced later this year. As well as improving services to Northern Ireland motorists, the changes will save £12 million every year.

These changes mean that the Driver and Vehicle Agency (DVA) will no longer deliver vehicle registration and licensing services to Northern Ireland motorists. We recognise the potential impact of this change. We have considered carefully the responses we received as a result of consultation and this proposal includes additional support both for customers and for staff. The DVA’s local offices will now remain open to support vehicle registration and licensing services until the end of 2014 while the new services bed in. The DVA’s office in Coleraine will provide a similar service. While I recognise that the Department of the Environment in Northern Ireland has said that it will try to avoid redundancies and where these are unavoidable, to aim to minimise the amount of compulsory redundancies as a result of this decision, my Department will work with officials there to support any staff who need to learn new skills to secure alternative employment.

I am publishing a package of documents to accompany this statement which assess the impacts of the changes being made and summarise the responses to the consultation. These documents provide more detail of the future services that will be available to Northern Ireland motorists and will be published on gov.uk and in the Libraries of both Houses.

I am committed to improving the services motorists in Northern Ireland receive, and supporting customers and staff through these changes. The DVLA will work with customers, stakeholders and staff to support the transition to the new service channels. Finally, I would like to place on record my thanks to DVA staff for their hard work in delivering vehicle registration and licensing services to Northern Ireland motorists over the years.

Driving Tests

Stephen Hammond Excerpts

Wednesday 12th March 2014 Ministerial Corrections

[Mary Creagh]

To ask the Secretary of State for Transport how many new drivers passed their first driving test in each of the last five years.

[Official Report, 3 March 2014, Vol. 576, c. 710W.]

Letter of correction from Stephen Hammond:

An error has been identified in the written answer given to the hon. Member for Wakefield (Mary Creagh) on 3 March 2014.

The full answer given was as follows:

[Stephen Hammond]

The information requested is in the following table:

[Stephen Hammond]

The information requested is in the following table:

Rolling Stock (North of England)

Stephen Hammond Excerpts

Wednesday 12th March 2014 Westminster Hall

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

I thank the hon. Member for Penistone and Stocksbridge (Angela Smith) for calling this debate on an important topic. Much has been made of what I may or may not say today, but I intend to cover directly some of the issues she has raised because the matter is important. Some people have suggested things I may say, but I will answer her questions.

There have been a huge number of contributions and I learned today that brevity is a virtue, and that the hon. Member for Glasgow South (Mr Harris) is a voice of experience and sanity. I always enjoy following the hon. Member for Nottingham South (Lilian Greenwood), who leads for the Opposition. She leaves me in awe of the fact that she can operate in a parallel universe. Is the real failure the 900 miles of electrification that this Government have committed to, as opposed to the nine under her Government, or is it the 11% rise in fares that would have happened had her Government been in power today?

I had an opportunity yesterday, during a Westminster Hall debate, to pay tribute to Bob Crow and to send condolences on behalf of the Government to his friends and family. Whatever our political differences, he was a doughty defender of his members and of safety standards, and I am pleased to reiterate that today.

I understand the frustrations that have been expressed today, but there must be recognition, as there was from some hon. Members, about the contribution and huge investment going into the north of England. The north of England investment plan will see £1 billion invested to improve services, to increase capacity and to ease overcrowding over the next five years. That massive investment will see electrification of the north-west triangle between Manchester, Liverpool and Wigan. The TransPennine route between Manchester and York via Leeds will also be electrified. Capacity improvements are being delivered between Manchester and Sheffield via the Hope valley line and the Chat Moss line between Liverpool and Manchester. Construction of the Ordsall chord will enable trains to run between Manchester Piccadilly and Manchester Victoria stations.

[Tom Blenkinsop]

Will the Minister give way?

[Stephen Hammond]

I will not give way, because I have only eight minutes.

Line speed improvements will be made on routes including those between Manchester and Sheffield, Manchester and Preston, and Manchester and Bradford. Whatever anyone says, that is a huge investment in the area. It is estimated that the wider economic benefits to the region will be more than £4 billion and have the potential to create 20,000 jobs. The Government are investing in the north of England. However, all those projects have an impact on rolling stock decisions and we are taking a broader look across the country to see why some of the problems—I accept that there are problems—have arisen. The significant steps that we are taking towards electrification throughout the country, including in the north, undoubtedly means that the rolling stock market is preparing to invest heavily in electric units. There is less demand for diesel units, and there is a short-term mismatch.

Everyone agrees that electrification will help to transform the railways by introducing faster, greener and more pleasant vehicles. It will also set up the opportunity for cascades of newly run-in and refurbished stock to other parts of the country to meet rising demand. Moreover, it is not just investment in infrastructure that will make a difference to services in the north. The intercity express programme is a major investment in rolling stock that will bring benefits to regions throughout the country and faster journey times both north and south. The programme will create new jobs in the north and will be fully implemented by 2020. The first trains being built at Newton Aycliffe by Agility Trains will bring about more reliable services. That context is important and shows the huge investment that is taking place.

I will now respond directly to some of the questions that have been asked today. The issue with the TransPennine rolling stock relates to nine Class 170 trains, which comprise 18 rail vehicles—not a higher number. Those vehicles are equivalent to approximately 9% of the total fleet. The lease for those trains expires in 2015, which is the end of the current franchise.

[Julie Hilling (Bolton West) (Lab)]

Will the Minister give way?

[Stephen Hammond]

I will not give way, but I will come on to Bolton in a moment.

As is usual in the commercial rolling stock market, the lease was offered from that point. The opportunity was taken up by Chiltern Railways, which agreed a new lease earlier this year. Hon. Members asked when the Department for Transport knew about that. It knew in October 2013 and the Secretary of State saw a lease in February. The Department was aware of the lease, but we cannot unreasonably withhold consent for it, so it was given.

Today, I have heard from many hon. Members about their concerns and I can report that the Government are well aware of the problem and will ensure that a solution is found. Discussions are taking place between Chiltern Railways and First TransPennine Express to allow the ongoing TransPennine franchise to retain the trains until May 2015. That will allow more time for a solution to be found. Discussions are taking place about how many of those trains Chiltern will need in 2015, and an opportunity will exist for TransPennine to retain some of the units until March 2016.

Commercial negotiations are taking place between the Department, Chiltern and others in the industry that will allow medium and long-term solutions to be found. The Department has made it clear that it expects train operators and rolling stock companies ultimately to resolve the situation, but it is equally clear that several possible solutions exist. By working in partnership, the Department can reach a positive outcome that will continue to provide the level of service that passengers are currently experiencing.

Comments were made about section 54 notices. They are only a one-way guarantee. Each guarantees the lease price, not that the lessee will not move the vehicles anywhere else. In addition, it is not contractually secure to transfer leases from one tenant franchise to another.

Some amusing but untrue comments and jokes were aimed at the Prime Minister. Anyone who knows the railways knows that Chiltern does not serve Witney, which is served by First Great Western. Moreover, it is important to make a point of accuracy that no one else has mentioned. Notwithstanding the issues involving TPE and the solutions the Government are putting in place, TPE is also taking delivery of 10 new Desiro EMUs immediately.

In the same vein, much has been said about Bolton and what might happen following the December timetable change. I met hon. Members from Bolton last week, and I understand the difficulties faced by passengers on that route. I am confident that an agreement will shortly be reached whereby electric rolling stock will operate on some services between Liverpool and Manchester from December 2014 and enable diesel trains to be released to address the capacity issues in Bolton and at the Todmorden curve. I assure my hon. Friend the Member for Burnley (Gordon Birtwistle) and the hon. Member for Penistone and Stocksbridge that that is not a failure of strategic planning, but will see services running on that section of track for the first time in more than 40 years.

Much has been said about the Pacer trains that were introduced in the mid-1980s and have rightly received their fair share of attention. With the introduction of new rolling stock into the region, higher quality rolling stock will be released for use across the network. In the forthcoming franchise competitions for Northern and TransPennine Express, the Department does not intend to specify the type of trains to be used. However, hon. Members will have seen the Official Journal of the European Union notice that we set out for the East Coast franchise and we expect to ask bidders for the Northern franchise to put forward proposals for the removal of Pacers from the area. Furthermore, as hon. Members will have noticed, the new franchise competition gives as much weight to quality as to price aspects of bids, so we expect bidders to take that opportunity to reflect that in their bids and operating plans.

Some hon. Members have contended that the Government favour the south over the north. [Interruption.] The reality, of course, is a completely different picture. The Department is taking a whole-network approach, investing heavily in services across the country for the better of all passengers in this country.

Rail Franchise Agreements

Stephen Hammond Excerpts

Wednesday 12th March 2014 Commons Chamber

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

I thank my hon. Friend the Member for Portsmouth North (Penny Mordaunt) for securing the debate, and indeed for her closing remarks—I give all thanks for God’s good fortune that I am a Minister. I hope that she will take some comfort from my remarks about the changes we have made to the franchising system since re-establishing it in March 2013, as some of the things she spoke about are now integral to the new franchising process.

As we heard, my hon. Friend has been an extraordinary doughty campaigner on behalf of the constituents in relation to the service from Portsmouth. I know that there is a significant file of correspondence between my Department and her on the subject, and I know that she has previously secured debates on the matter in the House.

Although I am tempted to use the three hours available, that might not find favour with you, Madam Deputy Speaker, so I will limit my remarks to the standard length for Adjournment debates and speak for about 15 minutes. I will talk first about the franchising process and the reforms we have made, and then address some of my hon. Friend’s specific comments and offer some words that hopefully will help her as she continues, quite rightly, to campaign to ensure the best for her constituents.

It is important that we understand exactly what a franchising process is and the general principles the Department follows in that regard. Strictly speaking, as most people understand, a franchise agreement is merely a contract between the Department and the operating company that sets out the responsibilities of each party. In many ways that is what we are buying through the privatised railway. Our franchise agreements contain a number of schedules, all of which include obligations that the train operating companies and the Secretary of State have to one another.

It is also pertinent to the debate to point out that when we make a franchise agreement with a private sector partner we go through a number of processes to ensure that the process is run correctly and is free of influence. The Secretary of State announced a new franchising programme in March last year, including, for the first time, a long-term schedule and the direct awards that we will make. That ensures that the process can be for the long term, that bidders can bid correctly and that there is the right number of bidders in the process to ensure value for money. We plan to update that schedule annually, and I or one of my colleagues will update the House on that in the near future.

The process the Departments undertakes has been set out in detail in the franchise competition and process guide. There are detailed changes from competition to competition, but the process is broadly simple. However, there have been a number of changes that I think are pertinent. One of those changes—a huge change—has been in the consultation that takes place with the public and the rail industry. That is essential to the ongoing franchise programme. We are revising our public consultation procedures to ensure that we consult as widely as we can when setting objectives for new franchises, and that has dramatically increased the amount of consultation that the Department undertakes.

In recent competitions, we have worked extensively with Network Rail and the Office of Rail Regulation, but also, more importantly and pertinently for the issues that my hon. Friend raises, with Passenger Focus and, particularly in the London area, with London TravelWatch. That has ensured that the wider industry and the wider interests outside the bidding community have been involved in looking at what should be the proposed specifications. We are asking organisations to provide in future their own advice on bidders’ responses to franchise competitions. We have also spoken to Members of Parliament, local authorities and other local groups, and consulted widely with the Rail Delivery Group and the bidders themselves to ensure that our propositions are robust and deliverable. All those groups now have a chance to make a significant contribution to, and have a significant impact on, the specifications. It is absolutely key to the new franchising process that the Government have committed to that level of engagement as we move forward, and there has clearly been an improvement.

As my hon. Friend said, the privatisation of the railways has seen an industry that was in decline turn into a resounding success story. We are now moving into a crucial period where Government, having reset the franchising process, must work in partnership with the private sector to build on that success. That is why the process has been restarted. We are taking steps to improve the way in which we contract with the private sector. That has been highlighted most recently in the new contract procedure that we are undertaking with the east coast main line, where we set out a prospectus that provided for consultation with the public and the rail industry, as I described, before the invitation to tender. We in Government need to deliver the highest quality specifications in invitations to tender which ensure that the bids we get mean that the franchise arrangements will deliver the best possible rail services for passengers and taxpayers.

The second point that is key in understanding the changes to the franchising process that we have undertaken in the past year is that, for the first time ever—this is one of the biggest changes we have made—we are taking into account non-financial factors in our assessment of bids. We are doing this right now as we evaluate the bids for the Essex Thameside and the Thameslink, Southern and Great Northern franchises. In the past, ever since the start of rail franchising, we have scored bids only on the financial elements and the elements that deliver a return in terms of premium or reduced subsidy. The financial factors are obviously important, but as my hon. Friend said, the quality of service that passengers receive, and therefore the quality aspects of bids, must be taken into account. The Department now does that, particularly when, as is often the case, the financial aspects are relatively closely matched and the quality aspects can be a potential tie-breaker in the assessment of bids.

This has been put in place to drive a certain set of behaviours in bidders, which, in turn, drives a certain set of changes to the bid and the outcome for passengers once the franchise agreement is in place. Putting quality into the bidding process is not only changing the mindset of bidders but, most importantly, putting the passenger at the forefront of the franchising process. We have recognised that in the past this process has not always delivered for the passenger or the taxpayer, and that is the rationale for the change. These are often rightly referred to as the quality issues, and they will improve the experience of passengers.

Each franchise competition will inevitably assess its own approach to quality and consider the balance between affordability and appropriateness with regard to the objectives that the Secretary of State and the private sector hope to achieve in the franchising process. It will also consider the ways in which we can improve the experience for passengers and the long-term value for the taxpayer.

The Department recognises the need to provide the right environment to encourage the continuing success of the railways. A large amount of my hon. Friend’s speech rightly centred on the rolling stock. The Department faces some considerable capacity issues. The increase in the number of people wishing to travel on a number of routes means that we need to find ways to increase capacity.

People who travel often want to sit and I understand the tensions my hon. Friend has referred to with regard to the rolling stock on the Portsmouth to London line. The class 450s that were put in place by Stagecoach South West on that route have undoubtedly increased the seating capacity, but she is right to raise issues about how that capacity is reached. There is a regional trend towards the common adoption of three-plus-two seating in standard class, which allows more passengers to be seated and fewer to be required to stand, but I recognise that there is a judgment to be made on comfort.

My hon. Friend referred to an interesting report that concludes that a seat that is judged to be comfortable can lead to some pain and that, conversely, a seat that is judged to be uncomfortable may cause no damage at all. Although the report rightly highlights some of the possible complaints about the 450s and their formation, I am not sure that it is as conclusive as has been suggested to her campaign. None the less, she is right to point out that the 450s have implications for many of her commuters who do not regard them as comfortable. Therefore, as I pointed out, the new franchising process seeks to achieve a balance between affordability and quality. We must consider whether the balance between capacity and the appropriate comfort of passengers is right.

I would be delighted to meet my hon. Friend to discuss in some depth the merits of the 444 as against the 450 and its appropriateness for her commuters. I also hope that my rather long explanation of the franchising process—although it could have been much longer—has led her to recognise that there has been change that allows for the possibility of new services that would be of benefit to her commuters. I would very much welcome her contribution on that and I am sure we will discuss it at our meeting. A semi-fast Portsmouth Flyer, or even the Mordaunt Express—which would be an excellent innovation—would be possible under the new franchising process.

One of the aspects that I have not described in more detail is that, while we are setting minimum temporary speed restrictions as a train service requirement, we are also giving points to bidders to consider how new markets and opportunities, which the new capacity we are building and the huge Government investment in the railways afford, can be incorporated in the new franchise agreements. When we start the refranchising process for my hon. Friend’s line, I would urge her to take the opportunity to engage in that process. There is a real opportunity to influence it. I hope she will take it and I am sure she will make that point at her meeting with me.

My right hon. Friend the Secretary of State has quite rightly said that we need to put passengers at the heart of franchises. The changes that we are making to the franchising process are starting to make a real change in ensuring that passengers are central to the franchise competition. We are now consulting them, and we are looking at the possibility of using innovation to take that consultation through the evaluation process, so that the quality provided to passengers is assessed in the bidding process for the first time ever.

It is a new and changed process, and I hope that my hon. Friend agrees that it will certainly start to make a potential difference to her commuters when we put the line’s new franchise process in place in two years’ time. As I have just said, I am delighted to have the opportunity to meet her in the interim. I hope that my remarks have given her some comfort that the Government recognise the plight of the Portsmouth commuter and recognise that some changes are possible.

Question put and agreed to.

Transport Infrastructure (Wellington, Somerset)

Stephen Hammond Excerpts

Tuesday 11th March 2014 Westminster Hall

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

It is a pleasure to see you in the Chair, Mr Gray. I congratulate my hon. Friend the Member for Taunton Deane (Mr Browne) on securing the debate, but it would be wrong of me not to start by saying how saddened I was to hear the news that Bob Crow died in the early hours of this morning. My thoughts are with his family, friends and colleagues. Like many, I will obviously remember him as a passionate advocate of safety on the railways and the well-being of people who work on the railways. Although it is probably clear to everyone that we may have had different opinions on how to run the railways, he was a man who led his organisation from the front and made an important contribution to the debate about how railway services are run in this country. My thoughts and, I am sure, the thoughts of everyone in the Chamber are with his family, friends and colleagues.

I commend my hon. Friend the Member for Taunton Deane for his eloquent and passionate speech. I listened to his opening remarks about the improvements in Taunton and clearly I welcome his support for the improvements that have been undertaken there. Of course, I also commend his realism in recognising that money is tight. That is a helpful prefacing remark.

The economic benefits of good transport are well understood and, in challenging times, transport investment is even more important. As my hon. Friend has pointed out, transport helps to support local communities by enabling businesses to move people and goods more quickly, easily and reliably, which helps them to grow and be competitive; by enabling people to get to work and creating more job opportunities; by supporting local projects and products such as Relyon mattresses, for which we heard an admirable advertisement; and by attracting inward investment to towns and cities to make them great places in which to live and do business.

It is useful to remind ourselves—this was implicit in my hon. Friend’s remarks—that the Government inherited not only a fiscal deficit but an infrastructure deficit. In the years leading up to 2010, there was a huge increase in demand on our transport network, but investment failed to keep up with that demand. As a result, nearly half of the respondents to a CBI survey at the time rated the UK’s transport network as well below average. It is to the Government’s credit that, at a time when we are trying to put the public finances in a sound place, we are investing record amounts in maintaining, upgrading and expanding the road and rail infrastructure in this country, investment that will, according to the International Monetary Fund, improve the long-run growth potential and boost demand.

Between 2011 and 2014, we invested £32 billion in roads, rail and local infrastructure, and between 2015 and 2021 we are committed to funding of £56 billion. We ensure that that money goes throughout the country. In the current two fiscal years, the Somerset block funding for road maintenance and highways maintenance will consist of more than £40 million. It is clear that the Government are committed to investing in reliable networks and providing the capacity that towns and cities across the country need.

The severe winter weather that we have suffered has made some parts of the network extremely vulnerable. As my hon. Friend knows, Somerset has had particular difficulties, so it is right that my right hon. Friend the Secretary of State for Environment, Food and Rural Affairs announced last week the publication of an action plan, which contains several transport recommendations. In addition to £10.5 million of funding from the Department for Environment, Food and Rural Affairs and the Department for Communities and Local Government, the Department for Transport is making £10 million of support available immediately to Somerset to enable it to start work on several short-term actions to help secure a sustainable future. As a result, I hope that Somerset will be able to begin to clear the roads of silt and debris, to deep clean the drainage system—that will help the road system—and to repair bridges and other structures. In addition, my right hon. Friend the Secretary of State for Transport has commissioned a review of the resilience of our transport networks. The challenge of the coming months is to get the network back to business as usual, to learn the lessons and to give the right support to the transport infrastructure in counties such as Somerset.

The Government clearly have a role to play in supporting communities through such extreme events and, as my hon. Friend the Member for Taunton Deane identified, in supporting communities with their priorities for transport. However, the days when Westminster decided and dictated to local communities what those priorities should be are over. Local priorities should be identified, and local decisions made, by local communities, local highways authorities and local enterprise partnerships. That is why the Government have committed £2 billion a year over the six years from 2015-16 to the local growth fund, which will be available to LEPs. Those growth deals can provide the resources required to facilitate local communities’ priorities, and such deals may well be appropriate for some of the targeted growth priorities that my hon. Friend described. The funding is not ring-fenced, but it will be available to support long-term planning infrastructure, including the transport priorities.

Many hon. Members will be aware that the growth deals are a competitive process, and moneys will be made available to the places that demonstrate the clearest-cut and most convincing arguments for delivering growth. It is important for local communities to engage with their local economic partnerships, and for local authorities and LEPs to work together to shape local priorities. I know that my hon. Friend has been involved in discussions with his LEP, Heart of the South West. I stress how important it is for the ambitions that he has described that the LEP is intimately involved in the discussions and that it recognises and supports his priorities.

I turn to the two interrelated schemes that my hon. Friend has described. He spoke about the congestion in Wellington and the need for a northern relief road to bypass the town centre by connecting roads to the east and the north, which has long been sought. The development that he mentioned will provide much of the road. It will provide access to some of the new residential development and to the factory, and it should reduce HGV traffic in the town centre. As he pointed out in an article last November, however, it will not be a

“proper northern relief road…we have the road to nowhere.”

I understand his concerns about the continuing congestion, delay and air pollution that are caused by the fact that the road is unconnected. He set out two aspirations for a northern relief road: one modest and one—a broader sweep that would cross the railway line—more ambitious. Both those ambitions are excellent examples of the solutions that the local growth fund has been established to support. As far as I am aware, and he may wish to correct me, they have not yet featured in the draft of the LEP’s strategic economic plan. I urge him to engage with the LEP and ensure that it recognises that ambition as a strategic priority. That is a route through which the scheme might be pursued.

[Mr Browne]

If we were able to bring forward a joint vision for those two projects, would there be any national impediment to Wellington having a railway station? Would the Department for Transport object to that on the basis that it might have implications for other traffic on that line? That might not be an entirely local point, but it would be beneficial to local people if there was not a national impediment.

[Stephen Hammond]

I will come on to discuss the railway station in a moment, so I will tackle that point shortly. Local pinch point funds, of which there have been two tranches under this Government, have helped with schemes such as the rail route that my hon. Friend mentions. Such problems are likely to be a priority for a future Government, and if such a scheme is re-established in future I hope that he might look at it as a potential way forward.

My hon. Friend is right to say that people in Wellington see the train services going past, but the station was closed in 1964. Wellington is thought to be the largest town on the Penzance to London line that does not have an operational station. I am aware that Mid Devon district council and Devon county council have spoken about how they might work together to re-establish local rail links between Exeter and Taunton. I understand that Somerset council has a long-term aspiration to reopen the rail line, but it has yet to identify a suitable service or adequate funding.

To come to my hon. Friend’s essential point, if Wellington station were to be re-established, the issue would be to ensure that a stopping service that called at Wellington did not interfere with the timings for some of the faster services, or with the ambition to provide accelerated services to some of the key markets such as Plymouth, Exeter and further into Cornwall. He is right to say that whatever happened, not all services would call at Wellington. The best way to achieve a semi-fast service that called at Wellington, fitted in with the timetable and allowed faster trains to pass would clearly be a discussion point. I do not see it as an impediment, but it would be a discussion point. I suggest that the next stage is to consider the proposal and to work up a business case, so that that work can be developed in partnership with the local transport body and the LEP. My officials will be happy to provide advice and guidance on how a viable case might be made.

As I have tried to convey in my short speech, I strongly believe that local priorities and local decisions should be made locally. My hon. Friend has made an eloquent case for his local priorities, and one of the main routes through which those priorities might be pursued is the local growth fund.

Light Dues 2014-15

Stephen Hammond Excerpts

Thursday 6th March 2014 Written Statements

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

The three general lighthouse authorities (GLAs) for the United Kingdom and Republic of Ireland provide an essential service for mariners through the deployment of coastal aids to navigation and inspection of harbour lights. The celebration of the 500th anniversary of Trinity House this year is helping to highlight the continuing vital role of these historic organisations. However this year and next will witness two significant changes affecting the GLAs.

In line with provisions in the Public Service Pensions Act 2013, the GLAs’ pension schemes will be closed and their members transferred to the principal civil service pension scheme, the rules of which the current schemes already follow by analogy. The reserves in the general lighthouse fund—above a minimum level required to maintain operational cash flow—will be used to fund this transfer, supplemented by a loan from the Department for Transport, which will be repaid through the fund over the next 10 years.

The transfer, which addresses the pension liabilities of the GLAs, will be of significant benefit to light dues payers. First it removes a source of volatility and risk for the general lighthouse fund from uncertainties arising in the way pension liabilities are valued. Secondly, it is a fundamental component of our actions to implement the agreement made in 2010 by the Irish and UK Governments that, from 2015-16, the work of the Commissioners of Irish Lights in the Republic of Ireland will be met fully from Irish sources.

In this way, the Government are laying the ground for a sustainable reduction in the call on the UK light dues payer, delivering on their commitment to creating the right conditions to support one of the UK’s most important industries.

On top of this, the GLAs have continued to improve the efficiency of their operations by working together, harnessing new technology, and a concerted programme of converting aids to navigation to use solar power. Therefore, I have decided to reduce the light dues rate by one penny to 40p per net registered tonne in 2014-15 and I intend to seek a further reduction in 2015-16, dependent on the final valuation of the liability and a decision on the appropriate minimum level of the general lighthouse fund. Following the freeze in light dues since 2010, this represents a 14% reduction in real terms under this Government.

DVLA Review

Stephen Hammond Excerpts

Thursday 27th February 2014 Written Statements

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

I am today publishing the report on the review of the Driver and Vehicle Licensing Agency (DVLA), which I announced on 8 October 2013. The Department for Transport commissioned this review as part of its commitment to delivering improved quality and better value motoring services to the public, business and other interested parties.

The review has concluded that while DVLA is an effective organisation that is delivering important services, there is significant scope to increase efficiency. Strategic recommendations have been made covering DVLA’s digital transformation, reducing the burden on customers, modifying the governance and management structure and optimising DVLA’s value as a service provider for Government.

I am content to accept all of the recommendations in the report. I have asked the chief executive to prepare a strategic plan for DVLA on this basis, which prioritises those measures that will bring the greatest advantage to customers.

I am placing a copy of the review and my response in the Libraries of both Houses and on the Department’s website. I would like to thank Mary Reilly and the review team for their work.

Re-employment

Stephen Hammond Excerpts

Thursday 6th February 2014 Ministerial Corrections

[Lilian Greenwood]

To ask the Secretary of State for Transport how many staff have been made redundant or retired by his Department and subsequently re- employed since May 2010.

[Official Report, 24 January 2014, Vol. 574, c. 362W.]

Letter of correction from Stephen Hammond:

An error has been identified in the written answer given to the hon. Member for Nottingham South (Lilian Greenwood) on 24 January 2014.

The full answer given was as follows:

[Stephen Hammond]

In total 12 civil servants have been re-employed by either Department for Transport central or one of its Agencies having been made voluntarily redundant or retired by the same organisation since May 2010. This is a very small percentage (less than 1%) of external recruitment over that period.

The correct answer should have been:

[Stephen Hammond]

In total 10 civil servants have been re-employed by either Department for Transport central or one of its Agencies having been made voluntarily redundant or retired by the same organisation since May 2010. This is a very small percentage (less than 1%) of external recruitment over that period.

DSA Procurement

Stephen Hammond Excerpts

Wednesday 29th January 2014 Written Statements

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

I am pleased to announce that, in accordance with the commitment previously given to reduce the costs of learning to drive, new contract arrangements will see a reduction in the cost of the driving theory test from September this year and savings in excess of £100 million over the next nine years.

The Government Procurement Service (GPS), an Executive agency of the Cabinet Office) and the Driving Standards Agency (DSA), an Executive agency of the Department for Transport and now merged with the Vehicle and Operator Services Agency (VOSA) into the new Driver and Vehicle Standards Agency jointly ran a competition to appoint a supplier for a framework contract to provide computer-based testing for the Government. The competition was concluded in early 2013. A call-off contract for the driving theory test—an essential part of arrangements to ensure road safety—has now been awarded under this framework.

The decision to award the framework agreement was subject to a formal challenge which prevented award of the agreement during the course of the challenge. To ensure continued supply of the driving theory test and a reduction in test fees, and in accordance with Government policy to manage disputes by the most effective and appropriate means possible, this dispute was resolved by agreement. This resolution enabled the award of a Government framework agreement to learndirect Ltd on 18 October 2013. Further, DSA and the Driver and Vehicle Agency Northern Ireland agreed that the driving theory test will be provided by learndirect Ltd from September 2016 and that the current provider, Pearson Driving Assessments Ltd, should continue to provide the test until that date.

The result of these contract arrangements has been to secure a very good, value-for-money deal. The reduction in net cost per test, allied to the Driver and Vehicle Standards Agency’s forecast of increased test volumes as a result of the economic recovery, means that more than £100 million will be saved over the next nine years. In addition, national coverage will be improved with tests becoming available at more locations.

As a consequence of the formal challenge and as a matter of good practice, the permanent secretary of the Department for Transport commissioned an independent review of the handling of the competition by officials in the Driving Standards Agency and other parts of the Department. This has now concluded. A separate report on the lessons that can be learned to inform future procurements will be published shortly. The National Audit Office has been apprised of these matters.