Taxis and Private Hire Vehicles

Debate between Stephen Hammond and Julie Hilling

Tuesday 29th April 2014 Westminster Hall

[Stephen Hammond]

As I have set out, we are looking at commencement orders that will set out some details and obligations more carefully.

There has been a huge amount of talk this afternoon about the trade, which many of us rely on heavily on for our everyday lives. The sector is also made up of thousands of small businesses; indeed, the single owner-driver is a typical feature of the industry. As the hon. Member for Wansbeck (Ian Lavery) said, these businesspeople are experts who often go the extra mile. That was something I certainly agreed with him on, although I suspect that the hon. Gentleman and I did not agree thereafter.

The hon. Member for Birmingham, Northfield (Richard Burden) made the point that it has been clear for some time that the law covering this transport mode is both archaic and complex. In many ways, it has not kept up with a number of other pieces of transport law and more importantly, it has placed a number of unnecessary burdens on small businesses. That is why the Government asked the Law Commission to carry out a comprehensive review of the law. As has rightly been pointed out, it will present its report—it will not be presenting a Bill; it will be presenting a report in the next few weeks—and at that stage, as with all reviews and reports, the Government will review the whole of those detailed findings and recommendations.

We gave the Law Commission a simple instruction, which was that it should carry out a review with a clear objective to deregulate as far as possible, and after careful consideration, should the Government decide to take forward legislation arising from the review, we will do so in a way that removes burdens and ensures that safety is still paramount. The publication of the Law Commission’s report has been delayed by several months, so there was no chance to have a dedicated Bill in the final Session in order potentially to introduce some of the wider reforms that the Law Commission will shortly recommend.

[Julie Hilling]

I wonder what the point of the Law Commission report is if the clauses are put in the Deregulation Bill. What if they are contradictory and what happens to the rest of the Law Commission’s work? I would be grateful if the Minister could explain to us what will happen with the Law Commission report if it comes up with some really positive suggestions.

[Stephen Hammond]

I expect the Law Commission to come up with a lot of positive suggestions and a lot of recommendations on removing some of the more archaic aspects of the existing legislation. I do not expect any of what is being proposed to contradict in any way that report. We have had to weigh up the case for finding a suitable opportunity to look at pragmatic changes in the immediacy rather than looking at the possibility of waiting until everything is reviewed. The Government have chosen to operate and act pragmatically, and to introduce limited measures at this point, because it is clear that the care we are taking to introduce the amendments will make life easier for small businesses and allow them to remove some restrictions that are completely unnecessary. That opportunity has been presented by the Deregulation Bill. It allows us to make immediate progress to assist both taxi and private hire businesses.

Oral Answers to Questions

Debate between Stephen Hammond and Julie Hilling

Thursday 20th March 2014 Commons Chamber

[Julie Hilling (Bolton West) (Lab)]

12. What steps he is taking to ensure adequate supply and stability of rolling stock until 2018.

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

The Government have embarked on a programme of rail capacity increase greater than anything seen since the Victorian age. More than 3,100 new carriages will be in service by the end of 2019. Through the franchising programme, we expect the market to deliver additional rolling stock solutions, building on the possibilities created by the rail investment strategy, electrification projects and capacity increases. I am confident that a solution will shortly be found to enable diesel trains to be released to address the capacity issues in Bolton.

[Julie Hilling]

My constituents are fed up with jam tomorrow and playing sardines today. With diesel trains in great demand but short supply for the next four or five years and with services for my constituents being some of the most overcrowded in the country, what is the Minister doing to prevent other companies from snatching more of our trains from Northern Rail and First TransPennine Express?

[Stephen Hammond]

I was pleased to meet the hon. Lady and other Members from Bolton recently. She knows that commercial leases are a matter for the operating companies, but also that, as I said a moment ago, I have worked with operating companies to reach a solution to ensure that there is extra capacity on the line in Bolton from Christmas onwards.

Rolling Stock (North of England)

Debate between Stephen Hammond and Julie Hilling

Wednesday 12th March 2014 Westminster Hall

[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.