Oral Answers to Questions

Theresa Villiers Excerpts

Thursday 22nd July 2010 Commons Chamber

[Brandon Lewis (Great Yarmouth) (Con)]

10. What progress has been made on the Government’s review of rail franchising; and if he will make a statement.

[The Minister of State, Department for Transport (Mrs Theresa Villiers)]

The Government today launched their consultation on the future of rail franchising policy. Our proposed reforms will lead to longer, more flexible franchises to incentivise private sector investment in the railways, which will benefit passengers and improve value for money.

[Nick de Bois]

Given the current poor standard of commuter service that my constituents in Enfield North receive from National Express, as evidenced by the lowest average customer satisfaction rates across the south-east, how will our franchising proposals improve the experience for passengers in my constituency and elsewhere?

[Mrs Villiers]

We will ensure that the new rail franchising system imposes on train operators demanding performance requirements, based on passenger outcomes and passenger satisfaction. Operators that do not meet those demanding requirements will face serious sanctions that will include, in the most serious cases, termination of the franchise. We believe that longer franchises will lead to more private sector investment and the improvements to stations and railways that passengers want, to improve their journeys. Longer franchises will also enable train operators to build longer-term working relationships with Network Rail, which are so vital to ensure that our railways are run efficiently and deliver value for money.

[Iain Stewart]

Many of my constituents in Milton Keynes are angry that despite paying about £5,000 for annual season tickets and having undergone years of misery as the west coast main line was upgraded, they are still denied access to Virgin trains at peak hours; the trains either do not stop at all or—perversely—they do stop, but only to let people off, not on. The long-term solution is the extra capacity that High Speed 2 will deliver, but will my right hon. Friend give an undertaking that when the west coast main line franchise comes up for renewal in 2012, she will ensure that my constituents have fair access to high-speed services?

[Mrs Villiers]

All representations from the affected communities will be taken on board as the decisions are made. We hope that what will result from the rail franchising reforms on which we are consulting at the moment is a better and more intelligent and flexible approach to timetabling. That will enable the demands of passengers to be more readily met than they are by the current inflexible system. My hon. Friend is right that the long-term solution has to be a new high-speed rail line. There will come a time in the not-too-distant future when the west coast main line will be simply full to bursting and we will need to provide extra capacity. That will release more space for commuting and stopping services on the west coast main line.

[Brandon Lewis]

The tourist industry in Great Yarmouth is worth almost £500 million, yet the train station is not exactly a welcoming gateway to our town. Residents would like a better station. Will the Minister give some assurance to the residents of Great Yarmouth that under the new franchise agreement we will be able to put some onus on the franchisee and Network Rail, to make sure that they can invest in things such as the stations themselves, so that we can get a better train station for Great Yarmouth?

[Mrs Villiers]

I recall the discussions that we had on this issue when I visited my hon. Friend’s constituency. I believe that the issue is a prime example of how the reforms that we are proposing could yield significant benefits for passengers. They will give the opportunity for private sector investment in stations such as Great Yarmouth’s. At the moment the franchise is of about seven years, and that simply does not give the certainty needed for private sector investment to pay for itself during the franchise. With longer franchises, we can expect more station improvements of the sort that my hon. Friend wants.

[Mr Jim Cunningham (Coventry South) (Lab)]

Will the Minister agree to meet a small delegation led by me and my hon. Friend the Member for Coventry North West (Mr Robinson) to discuss the Nuckle project in Coventry? The situation has been going on for a number of years and it needs resolving one way or another.

[Mrs Villiers]

Yes, I shall be happy to meet that delegation.

[Kelvin Hopkins (Luton North) (Lab)]

Given that franchises have failed already, many more franchises are going to fail under what is likely to be a much harsher financial regime. Is it not time to bring things in-house and begin to recreate the state railway systems that operate so well and so much more cheaply on the continent of Europe?

[Mrs Villiers]

The hon. Gentleman’s views on the railways are well known, although I am afraid that I do not share them. It would have been impossible for there to have been the significant growth in passenger numbers that we have seen since privatisation without the benefits that private sector innovation and enterprise have brought. Reversing things and renationalising the railways would be a retrograde step.

[Sadiq Khan (Tooting) (Lab)]

I note from the Order Paper that there are five identical questions on rail franchises from new MPs no doubt keen to impress their Whips. Half an hour before oral questions we had a press release from the Department for Transport announcing a consultation on the new rail franchises. Will the Minister confirm that in the new consultation that she has announced this morning, there will not be any barriers to stop new models, such as mutuals and co-operatives, from taking over franchises?

[Mrs Villiers]

There would be no barriers to mutuals and co-operatives bidding for franchises if they fulfilled the criteria. All franchise bids will be judged objectively on the quality of the services they will provide for passengers and value for the taxpayer.

[Charlie Elphicke (Dover) (Con)]

4. What plans he has for the future of the port of Dover; and if he will make a statement.

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[John Robertson (Glasgow North West) (Lab)]

8. What estimate he has made of the number of passenger flights cancelled as a result of travel agents going into administration in the latest period for which figures are available.

[The Minister of State, Department for Transport (Mrs Theresa Villiers)]

In the year to 31 March 2010, 29 companies licensed by the air travel organiser’s licence scheme failed. Under the ATOL scheme, managed by the Civil Aviation Authority, 2,445 passengers were able to complete their holiday and return home without charge. A further 45,114 were entitled to full refunds.

[John Robertson]

The Minister will know that 180 passengers were stranded at Glasgow airport on Friday, thanks to the collapse of Goldtrail. There were also 16,000 people stranded abroad. How does she propose to try to help those people get compensation? In some cases, they have been told that they will have to wait for at least two years before they get their money back. How can she stop those companies causing such disruption and ensure that people get home as quickly as possible?

[Mrs Villiers]

The CAA is working hard to repatriate the people affected by the Goldtrail failure, which has caused significant anxiety and disruption to people’s holiday plans. Our officials are working hard with the CAA to ensure that that repatriation effort goes well. We are also urging the CAA to ensure that lessons are learned from XL and the long time it took to process claims. The CAA urges all those who are ATOL protected to submit the relevant documentation so that refunds can be processed as quickly as possible. In the longer term, we need a bigger reform of the way in which the system works.

[Jane Ellison (Battersea) (Con)]

To refer my right hon. Friend to earlier answers on rail franchising—

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[Peter Aldous (Waveney) (Con)]

13. What progress has been made on the Government’s review of rail franchising; and if he will make a statement.

[The Minister of State, Department for Transport (Mrs Theresa Villiers)]

I refer my hon. Friend to the answer that I gave earlier.

[Peter Aldous]

Will the Minister confirm that the review of the Greater Anglia franchise will recognise the vital importance of the east Suffolk line from Ipswich to Lowestoft, and the need for both an hourly service along the whole line and the reintroduction of through trains to London, which are being withdrawn in December?

[Mrs Villiers]

My hon. Friend will appreciate that it would not be wise for me to start making timetabling decisions at the Dispatch Box. However, we are determined that the franchising reform, on which we will consult in the next few weeks, will deliver improvements for passengers, improve train operators’ ability to respond flexibly to increases in passenger demand on particular routes and help deliver the private sector investment to provide vital enhancements to our railways.

[Emma Reynolds (Wolverhampton North East) (Lab)]

Given that current legislation prevents organisations and companies that do not yet run rail franchises from bidding for them, will the Government consider changing it in their review to allow mutuals and co-operatives to bid for future franchises?

[Mrs Villiers]

I think that that question has been dealt with already. If mutuals and co-operatives can satisfy the requirements of the franchising process, they will be permitted to bid.

[Jane Ellison (Battersea) (Con)]

I think this is the appropriate moment to ask my question, Mr Speaker. In her discussions with rail franchises and franchisees, will my right hon. Friend ask them whether they will consider bringing longer trains through stations whose platforms have not been lengthened when they have available rolling stock? That is common on the continent, but we do not do it here, and it would greatly help at overcrowded stations such as Wandsworth Town station in my constituency.

[Mrs Villiers]

I am well aware of my hon. Friend’s strong campaigns for rail services in her constituency, and our visit to Clapham Junction railway station was particularly informative. She makes a good point about the more flexible use of capacity, and the train operators and Network Rail would certainly do well to take it on board. I suggest she raises it further with them.

[Annette Brooke (Mid Dorset and North Poole) (LD)]

14. What recent representations he has received on a compulsory requirement on cyclists under 16 years old to wear cycle helmets.

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[Graham Jones (Hyndburn) (Lab)]

Will the Minister let my constituents, and those of the hon. Member for Burnley (Gordon Birtwistle), know what progress he has made on the Todmorden Curve rail project?

[The Minister of State, Department for Transport (Mrs Theresa Villiers)]

I know that the local authorities are working hard on this project and have engaged Network Rail to do some important work on it. I very much appreciate the benefits that it could deliver, particularly when tied in with development proposals, if they go ahead. I am keeping a close eye on that. The hon. Gentleman will not be surprised to hear that I cannot give him guarantees on funding at the moment because of the state of the public finances. However, I know that the local authorities are taking this very seriously.

[Christopher Pincher (Tamworth) (Con)]

T4. Does my right hon. Friend agree that although high- speed rail services are important to our economy, many communities along the route, whichever may be chosen, will be adversely affected, including some communities in my own constituency? Will he therefore agree to mitigate, as far as he can, the impact on those communities, and will he also agree to—

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[Alison McGovern (Wirral South) (Lab)]

Last week, I spoke to residents in Heswall in my constituency who are most concerned to get the train to Liverpool rather than their cars. The Wrexham to Bidston electrification project is vital for that. Will the Minister explain briefly what work her officials in the Department are doing to work with Network Rail, Merseytravel and others to take this vital project forward?

[Mrs Villiers]

We are in touch with Network Rail and Merseytravel on this issue. Indeed, I discussed it with the director general of Merseytravel only recently. The hon. Lady will appreciate that this has been worked on by the Welsh Assembly Government, and I very much hope that progress can be made on it. However, she will appreciate that, as I said previously, the crisis in the public finances that we have inherited means that I cannot give guarantees on additional funding from central Government at the moment.

[Charlie Elphicke (Dover) (Con)]

T5. I see that the shipping Minister has been to Harwich and Felixstowe in the past week. I invite him to come and see the port of Dover, so that he can see at first hand how our plans can be the jewel in the crown of the big society and make Dover the jewel in the crown of the nation once again.

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[Katy Clark (North Ayrshire and Arran) (Lab)]

Will the Minister rule out reclassifying Network Rail as a public company, which would be a Railtrack mark 2, and commit to a not-for-dividend organisation?

[Mrs Villiers]

We are looking at the options for reform of Network Rail. We believe that the status quo is not acceptable, because Network Rail is not accountable enough to its customers or the passengers whom they serve. As for its balance sheet status, we believe that this is a matter for national statisticians. We will make decisions on the future of Network Rail based on what is best for passengers and the taxpayer, and not—as the previous Government did—on the basis of tortuous calculations about whether things are on or off the balance sheet.

[George Eustice (Camborne and Redruth) (Con)]

T8. One of the projects currently under review in my area is the east-west link road in Camborne and Redruth, which is a crucial element of a broader regeneration project, led by the private sector, that would create 6,000 new jobs. Does the Secretary of State agree that when it comes to prioritising transport projects after the comprehensive spending review, one of the key criteria to apply will be the impact on enterprise and jobs?