Rail Investment

Theresa Villiers Excerpts

Thursday 17th February 2011 Westminster Hall

[Mrs Ellman]

The hon. Gentleman makes an interesting point. We must all recognise economic constraints, but we have to consider seriously the implications of any policy that might price people off rail.

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

I hope that I can give the hon. Lady some reassurance. Of course we want to see passenger numbers increase. That is important for our economic future and for our environmental policies. We have had to take a difficult decision on fares in order to deliver the vitally needed rail capacity improvements. As we are dealing with an enormous deficit that we inherited from our predecessors, we have had to ask passengers to pay a bit more to contribute towards the investment that they want to see put into the railways.

[Mrs Ellman]

I thank the right hon. Lady for her comments. I recognise the Government policy context in which these decisions are taken.

Let me now draw attention to the issue of rolling stock. If people are going to be asked to pay more for their fares, it is reasonable to ask whether the rolling stock will be adequate to ensure that people have a reasonable journey. The more people pay, the more concerned they will be if the rolling stock is not adequate. The situation is extremely confusing. The announcements made by the Department for Transport on what rolling stock is to be provided, where and when have been unclear.

When our Committee issued its report last year, we expressed deep concern at the postponement in issuing the rolling stock plan for 1,300 new carriages that were expected by 2014, and at the uncertainty and confusion the delay was causing within the industry, but we recognised that the commitment to electrification legitimised the pause in assessing exactly what rolling stock was required and when. However, since then, little real progress has been made in delivering new carriages. Instead, we recently received another announcement by the Department that 2,100 new carriages would be delivered by 2019, 1,850 of which will be net additional vehicles. As my right hon. Friend the Member for Derby South (Margaret Beckett) said, many of these are for the Crossrail and Thameslink projects, which will then lead to electric carriages on the network being cascaded to other parts of the country, including the north. If and when that happens, I hope that it will not be a matter of the north getting the cast-offs from the south. I expect the stock to be in good condition and well suited to meet the needs of the people in the north.

Given that the completion dates for both Crossrail and Thameslink have been delayed to 2018, will the Minister tell us when these much-needed carriages that the industry has been waiting for, will finally be delivered? How many of those carriages expected by 2014 will actually be delivered by that date?

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[Mr Harris]

That is undoubtedly the case, but I do not accept that that is necessarily an immovable barrier to innovation. Network Rail is the greatest purchaser and procurer in the whole of the industry and it works in the long term. Frankly, many of the manufacturing companies that rely on contracts from Network Rail want to deal in long-term investment and want a long-term reassurance that the work will be there 10 or 20 years down the line. If the will is there, innovation can happen and, as I have said, that is irrespective of whether the industry is privately or publicly owned.

I shall say a few words about High Speed 2. I have long been a supporter of the project, although not on environmental grounds. As Rod Eddington said in his 2006 report, there may well be a case for high speed on capacity grounds, but there is probably not an environmental case. In addition, there is probably not a great case in terms of connectivity, because Britain is a relatively small country and is already pretty well connected. However, there is a case for high speed on capacity grounds. When we get letters and complaints from our constituents, apart from fares, capacity is the burning issue at the moment. It has been for a number of years and will continue to be until we do something serious about capacity. HS2 will relieve capacity on the west coast main line, and I hope that it will do something for freight as well.

I worry about the debate that is developing in this country on HS2 and that supporters of it are dismissing out of hand the concerns of people who live along the line and colleagues who represent communities based along the line. I hope that we can conduct that debate in a more consensual and less provocative manner.

[Mrs Villiers]

The hon. Gentleman is too pessimistic when he says that the supporters of HS2 dismiss the concerns of local communities. As far as I know, the vast majority of supporters of HS2, including the Government, take those concerns very seriously. We believe that significant efforts need to be made to mitigate what will inevitably have some local impact on communities.

[Mr Harris]

I accept the Minister’s reassurance on that. I simply speak from the point of view of reading reports of the debate that is going on. I am not trying to separate the arguments; I am trying to bring people together. I make the point that people’s concerns are not down to nimbyism or the fact that they are selfish or somehow anti-public transport. People have valid concerns, which can be overcome. HS2 is a nationally important strategic piece of infrastructure that must go ahead for the good of the country, but we cannot sweep those concerns under the carpet. I have heard the Minister say that those concerns will not be swept under the carpet, and I therefore hope that between now and when construction starts, we can come to some kind of agreement and compromise. We need to accept that those concerns are absolutely valid and that people have a perfect right to protest and raise concerns about something that might well have an adverse impact on their local environment. I thank you for giving me the opportunity to speak, Mr Owen.

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[Andrea Leadsom (South Northamptonshire) (Con)]

I join other hon. Members in congratulating the Chair of the Transport Committee, the hon. Member for Liverpool, Riverside (Mrs Ellman), on securing this debate about the priorities for rail investment. That is an important topic, as it involves the relative merits of what our money is spent on. Value for taxpayers’ money is a subject dear to my heart.

Almost a year ago, I was the unsuspecting candidate for South Northamptonshire. Suddenly, I heard Lord Adonis’s announcement about high-speed rail that was, quite literally, to change my life, and it hit me out of the blue that the line would go through the middle of South Northamptonshire. Within days, I held a public meeting that was attended by about 550 people. Of those, 400 were on two floors of a town hall in Brackley, and 150 were outside on the pavement trying to get in.

I do not want to focus on that today. Hon. Members from across the House have made accusations of nimbyism, noted that if we want to make an omelette a few eggs have to be cracked and made other helpful remarks. Therefore, I will not talk about the fact that I have had nigh on 1,000 pieces of correspondence. My right hon. Friend the Minister knows that only too well, as I am in regular correspondence with her and the Department for Transport.

There are real concerns. Some schools in my constituency may be unviable from now on because of the risk that high-speed rail will run so close to the school that in a few years’ time—within the time frame for parents to decide where to send their children to school—that school will be forced to close. If that threat exists, why would any sensible parent send their child to such a school? There are families who need to move but do not quite meet the criteria for the exceptional hardship scheme. They do not know when they will be able to move, if ever. There is a risk that the famous English battle site at Edgcote will be severely damaged by the proposed route. There are many small battles to fight in South Northamptonshire to protect ourselves in terms of mitigation. Again, I will not talk about that now, because I have been accused of nimbyism too many times. Instead, I will focus on my 23 years in banking and finance, and hope that that will give me the credibility to point out the issues about value for money and the choices that we need to make about our priorities for rail infrastructure.

We expect the High Speed 2 line from London to Birmingham to cost around £17 billion. That is largely a guess, as such major infrastructure projects often have big overruns. I know the Department for Transport is concerned about the fact that civil engineering in this country costs such a great deal. As a frequent user of the line from Euston to Milton Keynes, I accept that the west coast main line is at capacity. I have taken trains home at 8 pm, and still found myself standing shoulder to shoulder. It is a matter not of having a seat, but of having anywhere to stand. However, is that need for capacity best met through a brand new, 250 mph train line, or can we achieve something similar by providing additional capacity on existing railway lines, and using the change—a significant amount of money—to fulfil some of the other interesting and compelling projects that hon. Members have mentioned today?

As I have heard many times, because of the capacity issue there has to be a new train line, and if we are to have a new train line, it may as well be high speed. That is my first challenge. High-speed rail has massive implications in terms of engineering costs and the impact on the environment and the communities through which it passes. Does the line have to be high speed? Will it even reach 250 mph? Certain international rail consultants have challenged whether such a line in Britain—a small country with complications caused by the lie of the land, the wrong sort of leaves, the wrong sort of snow and probably the wrong sort of trespassers on the line—will actually ever reach 250 mph on a regular basis. If it does not, what on earth is the point of spending the money to go in a straight line? That is my first major question.

Secondly, I have seen evidence that suggests that a similar amount of capacity could be freed-up on the west coast main line by providing 12-coach trains, making adjustments to certain stations and carrying out other alterations that would not incur the type of disruption that we saw in previous upgrades to that line. Is this an issue of capacity, or is it a case of, “HS2 is the answer, what is the question?”? I am unconvinced that we have said, “There is £17 billion to be spent, how best can we spend it?” I did not give the Minister prior notice of that question, but I would appreciate it if she would indicate whether she will be willing to talk to me separately about it.

I am not a transport expert by any means. My favourite film as a child was “The Railway Children”, and my 15-year-old has told me excitedly about Maglev. That is the future, although not in our lifetime I have been told. Meanwhile, we are stuck with ancient 21st-century technology, and we have to look at what we can do now.

Hon. Members have spoken about the importance of the electrification of other lines. They have mentioned the northern hub and the east-west line. A number of colleagues who will not be affected at all by HS2 have said, “What about my line? My constituents want to get from the east coast to the west coast. What are we doing for them?”

[Mrs Villiers]

I hope that my hon. Friend appreciates that over the next five years, the coalition Government will be embarking on one of the most extensive upgrades of our existing network in modern history. There is no evidence to suggest that high-speed rail is going to squeeze out other important rail upgrades. Both are important, and both will be delivered on.

[Andrea Leadsom]

I am pleased and reassured to hear that; nevertheless, in this time of great financial constraint, there is no doubt that a £17 billion project will lead to other choices not being taken.

The hon. Member for Luton North (Kelvin Hopkins) made an excellent contribution—he is clearly an expert on this matter. He spoke about a dedicated freight line. I do not wish to be a nimby, but if such a line went through my constituency, I can see the obvious merits of a dedicated freight line that I cannot see having looking carefully at HS2.

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[Chris White (Warwick and Leamington) (Con)]

I add my congratulations to the Select Committee on Transport on its most excellent report. If I may say so, however, there is one area of the report that could have done with strengthening a bit—high-speed rail. I have already made my position clear: I do not support High Speed 2. As the report makes clear, the estimated cost of the London-west midlands line is about £11 billion, with the total cost rising to £69 billion for a full 1,500-mile network. High-speed rail is therefore a major part of the long-term investment in our railways, and I believe that it should be heavily scrutinised before we commit so much public money to it. I appreciate that the report mentions some of the arguments surrounding high-speed rail, but I believe that more time should have been given to it and it should have been studied in greater depth, given the potential cost to the country over the long term.

Given that in 2007 the Department for Transport broadly accepted the Eddington transport study, which concluded that high-speed-rail would be poor value for money in the UK, it is incumbent on Parliament to ask what has changed so much in the space of the last three years to reverse that conclusion.

[Mrs Villiers]

Apart from anything else, there has been a change of Government. We are taking a forward-looking approach, so as to address the transport needs of our country over the next century. We have to make this upgrade to deal with the massive growth of future years. It is the best way to deliver it in a sustainable way.

[Chris White]

I thank my right hon. Friend for her comments.

If I may pursue my argument further, there are still some questions to be asked—such as whether the assumption of background growth in demand of 133% is truly realistic; such as whether potential competition from conventional rail has been taken into consideration when calculating the returns to be generated by this investment; such as whether new developments in technology, including video conferencing, online communication and information sharing, will seriously reduce the need for travel.

Large countries such as China are considering whether there are clear benefits to high-speed rail. A report by The Economist only two weeks ago entitled “On the wrong track” highlighted the fact that many of the newly added lines are making hefty losses and are thought to be operating at under half capacity. The Chinese Academy of Sciences has asked the Chinese Government to reconsider the case for investment in high-speed rail.

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[Andrew Gwynne (Denton and Reddish) (Lab)]

I am pleased to contribute to this important debate. I congratulate the Transport Committee on its report and my hon. Friend the Member for Liverpool, Riverside (Mrs Ellman) on securing this debate. I am pleased to have had the opportunity to listen to the views and concerns of right hon. and hon. Members. There has been good, thoughtful and powerful debate from all parts of the Chamber. The Select Committee report posed a number of questions about the future of the rail industry that are relevant to our deliberations today. The report might be a year old, but it is very much a case of back to the future. Many of the challenges outlined in the report are still to be answered satisfactorily or properly addressed by the Government.

The report looked at a wide range of issues facing the rail industry. There are perhaps too many to cover adequately in the time that we have left. A key issue is how we deal with severe overcrowding on services and how we realign rail investment more equally across the whole country. The report considered ways in which we could increase electrification on the network and examined rail investments that could be shared with all parts of the country.

As you are no doubt aware, Mr Owen, Labour is currently undertaking a policy review. As part of that, the transport team is looking at the ways in which we can deliver improvements in our railways. With nothing ruled in or out at this stage and with all ideas on the table for further discussion and examination, these ongoing discussions will form the basis of Labour party policy on transport for the next general election. A number of the ideas that have been raised today will be considered seriously.

[Mrs Villiers]

Does the hon. Gentleman’s party still support high-speed rail or not?

[Andrew Gwynne]

The Minister pre-empts what I will come to later in my contribution, but we are in favour of faster trains and better connectivity, and high-speed rail will certainly form part of our policy review.

Returning to the Transport Committee’s report, there are a few issues that it addressed that I would like to revisit briefly. As the report clearly identified, it is likely that there will be serious capacity issues all over the rail network in the years to come, and the Labour party remains committed to addressing both overcrowding and capacity issues on the network. However, where a Government makes future investment in the rail network is clearly important and tough decisions have to be made about the future priorities of the network.

As the report also clearly identified, investment decisions will have a huge impact on regional growth, and those decisions can help to perpetuate a vicious cycle of increasing disparity of wealth between regions. They will be all the more important in light of the abolition of the regional development agencies, which was referred to by both my hon. Friend the Member for Liverpool, Riverside and the hon. Member for Blackpool North and Cleveleys (Paul Maynard). I myself represent a constituency in the north-west of England, so it is frustrating for me to see how rail congestion is having a real economic impact in areas such as Manchester and in the wider north-west, with knock-on effects on jobs and prosperity for my constituents and others.

The report rightly identified the northern hub as the key to improving rail services across the north of England. As we have already heard, it is an ambition of the northern hub project to increase train services in the north, including to cities such as Newcastle, Liverpool, Manchester, Leeds and Sheffield, by 40% during the next 20 years. That means 700 more trains a day, making it possible for 3.5 million more passengers to travel by train every year. The estimated wider economic impact of the project is also significant, with the creation of 23,000 new jobs and a return of £4 for every £1 that is spent. Of course, it has been frustrating for the northern hub project that there are no firm commitments about when work on that worthwhile and economically beneficial project will start. I want to take this opportunity to ask the Minister if she envisages that the project will be in the next Network Rail control period.

The report also examined the benefits of electrification, both for the environment and for improving the efficiency of our rail network. As we know, a number of regional schemes were announced by the previous Labour Government, and many of them were reconfirmed by the current Government through the comprehensive spending review. As yet, we are still awaiting a final decision on whether or not the Great Western main line electrification will extend all the way to Wales. People in Wales will feel pretty upset if that decision is delayed unduly, especially when the Conservative party manifesto itself said:

“We support…the electrification of the Great Western line to South Wales.”

I am not sure whether there were any Welsh MPs in the room during the coalition negotiations, because that commitment was subsequently downgraded to a general statement of support for

“further electrification of the rail network.”

It is crucial that the economic benefits of electrification extend to south Wales, and by that I mean that electrification should extend not only to Cardiff but Swansea.

Similarly, we wait with bated breath to see whether the newly electrified lines in the north-west, when they are eventually upgraded, will actually have electrified trains running on them from day one. Rightly there is a concern that, with delays to Thameslink, the carriage cascade to the north-west will be delayed. After all the internal investment to electrify the north-west part of the network, it would be a travesty if the old, overcrowded and slower diesel units continue to be used on the newly electrified lines.

I would warmly welcome any updates on these issues that the Minister can give us today. Can she let me know when there will be a decision on electrification to Wales? Likewise, can she outline the time scales that are in place for the replacement of Thameslink rolling stock and for cascading trains to the Great Western main line and the north-west?

The Transport Committee report also identified the importance of having new rolling stock on the network. Clearly, the delaying and reprofiling of some major schemes that had been announced by Labour is disappointing, especially as train fares were hiked up last month, but new carriages remain some years away for some commuters.

It is a similar story regarding the delivery of replacement stock for the outdated inter-city fleet. Clearly, the Government have delayed their decision on the inter-city express programme, with all the knock-on effects for cascading rolling stock. It is time that the Government ended the delays and allowed that project to proceed.

[Mrs Villiers]

I will not take any lectures from the hon. Gentleman—a Labour MP—about the IEP, given that his Government made little progress on it and spent £26 million on merely trying to procure the new trains.

[Andrew Gwynne]

I would welcome an update from the Minister about where that infrastructure project has got to and when we can expect to see new inter-city trains.

After rail fares increased last month by RPI plus 1%, as we have already heard, it is disappointing for commuters that the Secretary of State keeps claiming that fare increases across the CSR period will be only 10%. Is not the truth that RPI plus 3% will deliver a cumulative increase of more than 30% on the inflation forecasts by the Office for Budget Responsibility?

The Minister’s Department confirmed to me—it seems that it has also confirmed this to my hon. Friend the Member for Luton South (Gavin Shuker) in an answer to a written question—that it expects the effect of those rises to be rail passengers opting for other forms of transport. There is a concern, which the Minister used to share, that higher fares will price people off trains. That concern exists despite what the hon. Member for Cheltenham (Martin Horwood) has said. In turn, pricing people off trains will reduce people’s access to work and force them back on to the roads, generating more congestion, increasing carbon emissions and setting back our goal of achieving a sustainable transport system.

Briefly, I want to talk about high-speed rail, which was also mentioned in the Transport Committee’s report. As I have said in response to an intervention by the Minister, the Labour transport review will look at all areas of policy in detail, including high-speed rail. Clearly it is right that we should look in detail at the best way of delivering faster journey times between our core cities while increasing capacity.

The connectivity gains of high-speed rail arise not only from faster trains but from the new route alignments that comprise the proposed Y-shaped network of lines from London to Birmingham and—eventually—north to Manchester, Leeds and beyond. However, I have a real concern about the Government’s commitment to taking the planned high-speed line to the north. They have decided not to use the forthcoming high-speed legislation to secure the legal powers that would be needed to take the line beyond Birmingham, as Labour had planned to do. We will support the Government in taking the line beyond Birmingham, if that is what they choose to do. Perhaps the Minister can provide us with assurances that the Government will look again at seeking powers to extend the route beyond Birmingham.

It is also worth briefly mentioning freight on the rail network, which was an issue referred to both in the Transport Committee’s report and by my hon. Friend the Member for Luton North (Kelvin Hopkins). Freight operations play a big part in the economy, and we should look at ways of ensuring that freight capacity can continue to play a role in the rail network. Will the Minister outline how she sees rail freight being prioritised, especially with an eye on possible structural changes to Network Rail in the coming years? Indeed, is rail freight still a Government priority?

That brings me on to the McNulty review on value for money, which will have a real bearing on the future functioning of the rail network. I welcome that review of the rail industry, which was started by Labour when we were in government. When Sir Roy McNulty publishes his final report in April, we will consider any sensible proposals that would take costs out of the industry without reducing the quality of services for passengers. Does the Minister agree that, as the cost to the Government of running the railways comes down, the cost to the public of travelling by train should come down as well? Such a reduction would go some way towards helping hard-pressed commuters up and down the country, who are facing record fare rises of more than 30% in the next few years. The initial findings of the McNulty review have suggested that savings of £1 billion can be found without cutting services. Will the Minister now commit to sharing the benefits of those savings with passengers and to rethinking some of the fare rises that are due in future years?

In conclusion, as the Transport Committee report shows, the Government need a long-term vision for rail, and we need to deliver projects to build on our ambition to have a world-class rail service in this country. Where we agree with the Government, we will support them. The previous Labour Government left the rail network in a far better condition than the one in which we found it. Rail passenger numbers increased by 40% during the last decade, punctuality and quality of service also improved steadily in that time and consumer satisfaction with services increased. However, I recognise that there is still a huge amount to do, and this Transport Committee report is a good starting point for that future work.

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

It is a pleasure to serve under your chairmanship, Mr Owen, and I, like everyone else, congratulate the Chairman of the Select Committee, the hon. Member for Liverpool, Riverside (Mrs Ellman), on securing this debate on such an important issue.

It has been a good debate, and we have at times been in danger of breaking out into a bit of cross-party consensus, which is extremely unusual on rail. It has been enlivened by references to Trotskyism and Leninism—the first time I have seen such elements enter into a debate on the railways. Everyone has recognised the crucial importance of our transport networks in general, and our rail network in particular, to our future economic prosperity, and to our ambition both to address environmental concerns, including those about climate change, and to deal with congestion on our roads by providing a viable alternative to the lorry and the car.

The coalition has pledged to cut the deficit and also recognises that securing growth is vital, which is why in the comprehensive spending review the Chancellor placed a priority on transport spending. As many Members, particularly the hon. Member for Luton South (Gavin Shuker), have acknowledged, transport projects can generate wider economic benefits many times their cost. I very much welcome the generous acknowledgement by my predecessor as rail Minister, the hon. Member for Glasgow South (Mr Harris), that the anxiety about a Conservative Government slashing spending on the railways has not materialised. Rail emerged from the spending review in a far stronger position than most people had expected, and that was acknowledged also by my hon. Friend the Member for Blackpool North and Cleveleys (Paul Maynard).

We have had to take a difficult decision on fares and I, of course, wish that that could have been avoided, but without the three years of RPI plus 3 increases, we simply would not be able to deliver the vital capacity improvements that passengers need. To make the sums add up, we had no choice but to ask passengers to pay more, but we are absolutely confident that passenger numbers will continue to grow. I was surprised that the Select Committee Chairman asked whether we were committed to new capacity and whether we expected growth to continue, because we are embarking on one of the most ambitious extra-capacity programmes in the history of the railways. That demonstrates our confidence that passenger numbers will grow, and our commitment to relieving overcrowding, which, as she rightly highlights, is a major concern.

[Mrs Ellman]

Do the right hon. Lady’s statements mean that she gives a categorical commitment to delivering the rolling stock as promised, and will she include in the conditions of future franchises a requirement to look at the health and safety implications of overcrowding?

[Mrs Villiers]

I will, in a moment, outline the Government’s commitments on extra rolling stock. Health and safety is a matter for the Office of Rail Regulation, which takes on board all such factors in its decisions on safety in the rail industry. There has been a significant improvement in safety on our railways over recent years, and we need to pay tribute to the fact that they are one of the safest forms of transport.

In response to the hon. Member for Glasgow South, we do not at the moment have any plans to reintroduce the flat cap. Affordability is the concern, but we will keep the matter under review, and see if it becomes more affordable in the future.

The improvements that we have promised are extensive, and over the next four years the Government propose to invest £30 billion in transport, £14 billion of which will support capital maintenance and investment in our railways. Major projects that we are funding include high-speed rail, Crossrail, Thameslink, Birmingham New Street and the tube upgrades. In answer to the question that the hon. Member for Liverpool, Riverside asked about carriages, we expect there to be about 2,100 new carriages on the rail network by 2019, of which about 1,850 will be additional capacity, and I shall go into a little more detail on carriages in a minute.

[Kelvin Hopkins]

Will the right hon. Lady look into the fact that more than 100 mark 3 carriages could be available immediately? We would only need to have new bogies to cope with the gauge difference with Ireland. The Irish need the money, I think.

[Mrs Villiers]

It is open to the train operators to lease additional capacity if they so wish, and they may well be interested in exploring the option that the hon. Gentleman outlines.

Substantial work is under way on the strategic freight network, and I have repeatedly paid tribute to the work done on that by the previous Administration. I emphasise that rail freight plays a really significant part in our strategy for reducing carbon emissions and relieving congestion, and that is why the coalition has prioritised investment in projects such as the Felixstowe-Nuneaton gauge clearance.

The hon. Gentleman would like to see a dedicated freight line. I know his enthusiasm for that project and am always happy to engage with him on it, but the freight industry as a whole prioritises the projects in the strategic freight network, rather than a dedicated line. If the hon. Gentleman can make the case for going ahead with something like that in the future, I and my colleagues will of course be prepared to listen.

On the regional balance, in making project funding decisions it is important to take account of the needs of different areas. Although the business case for rail investment in the south-east can often be stronger because of the sheer volumes of passengers, assessment of the business case is just one element in the decision-making process and we can, and do, have regard to other factors, including the appropriate balance of funding between different parts of the country. It is worth recognising that improvements in London and the south-east can yield benefits for the economy as a whole, but the north of England will benefit directly from a whole range of programmes that are under way, including faster journey times between Liverpool, Manchester and Leeds, additional carriages, electrification, station improvements and important upgrades on the east coast main line, as well as the extension of light rail in Manchester and Newcastle, and in the longer term the north will benefit massively from our high-speed rail plans. The tough decisions made in the spending review mean that we are able to provide more than £1.5 billion for local authority major schemes in the period up to 2014-15, and that is a larger amount than the average annual Department for Transport spend on such schemes over the past 10 years.

High-speed rail has been a big issue in the debate this afternoon, as ever. My hon. Friend the Member for South Northamptonshire (Andrea Leadsom) spoke with her usual passion and articulacy on her concerns about high-speed rail, and I welcome the input of all colleagues on this issue as it is one of the most important parts of the coalition’s programme to improve our railways. Very soon we will start a major consultation on our strategy for a Y-shaped High Speed 2 network, and I can assure the shadow rail Minister, the hon. Member for Denton and Reddish (Andrew Gwynne), that we are committed to taking this railway to the north of England, in two delivery phases. Opponents of HS2 say that it will not have a big impact on the north-south divide, the important response to which is that they should look at the extensive support for the project in the north of England, and also at the rest of Europe, where cities such as Lille have been transformed as a result of the connectivity that can come with a high-speed link to a capital city.

Demand for travel between our cities is expected to increase significantly, and there is an industry consensus that the west coast route will be full to capacity within little more than a decade. My hon. Friend the Member for Blackpool North and Cleveleys indicated that there was some contention about passenger growth figures, but everyone accepts that there will be significant growth on the west coast main line.

[Andrea Leadsom]

Will my right hon. Friend give way?

[Mrs Villiers]

I am afraid that I really cannot. I do apologise.

We will face severe congestion and overcrowding on those routes in years to come, unless we act now to begin the process of delivering that capacity.

On the alternatives, upgrades of an existing line, even extensive ones, could deliver only half a new line’s capacity benefit and would be more expensive. My hon. Friend the Member for South Northamptonshire asked whether 12-car trains would deliver the equivalent capacity: no, they absolutely would not. The hon. Member for Luton North asked whether new signalling would deliver it, and the answer is the same. We are already introducing new capacity on existing lines, and there comes a point at which incremental changes do not deliver the upgrade needed. Moreover, High Speed 2 will deliver the benefits of capacity released on the existing network, with major benefits for places such as Milton Keynes, Luton, Northampton and Peterborough, and also for freight operators.

I sincerely believe that careful mitigation can address many of the most serious local impacts, and I know that my hon. Friend will continue to fight hard for her constituents, who might be affected by the line. We welcome their involvement in the consultation process on which we are about to embark, to ensure that we get the right answers on high-speed rail and that we listen to the views of people affected by it.

After 20 years of discussion, Crossrail is finally going ahead. I hope that that answers those concerned that High Speed 2 will swallow up all the funding available for rail. The hon. Gentleman complained that the Hitchin flyover might not go ahead as a result of the funding pressure on high-speed rail. It is under way, or will be shortly, as it is in an investment programme to which the Government have committed. We have confirmed that the Thameslink programme will proceed in full, despite anxiety that it might not. Some 1,200 new carriages will be delivered, almost doubling the number of north-south trains through the capital at peak times.

On the Derby factory and the procurement of the Thameslink trains, the hon. Member for Glasgow South tempted me to depart from the EU’s procurement rules. I fear that I would find myself falling foul of the European Communities Act 1972 if I did, so I will not advocate failing to abide by our treaty obligations, but I can assure the House that bids from UK-based operators will be considered carefully and assessed fairly, objectively and equally.

The Government expect an additional 650 carriages in several of our major cities by 2014. We expect services to be strengthened into Leeds, Manchester, Sheffield, Liverpool, Newcastle, Birmingham, Bristol—to answer the concerns of the hon. Member for Chippenham (Duncan Hames)—London Paddington and London Waterloo. In addition, new Thameslink and Crossrail rolling stock will enable the redeployment of hundreds more existing electric carriages, strengthening the case for further electrification of our network. I hope that that responds to the concerns expressed about the quality of rolling stock in the north. The hon. Member for Bolton West (Julie Hilling) rightly raised concerns about the quality of that rolling stock and the notorious Pacer trains. We believe that our programme of new rolling stock will help address those concerns.

As the Chancellor confirmed in his Budget speech, lines between Liverpool, Manchester, Preston and Blackpool will be electrified. The redeployment of electric rolling stock to those routes will in turn free up hundreds of diesel units, which will be available for train operators to lease after 2015. In November, the Secretary of State announced that Network Rail will electrify routes on the Great Western main line from London to Didcot, Oxford and Newbury. We expect to make an announcement shortly on the further electrification of that line. We have decided to press ahead with plans to buy a new fleet of trains to replace most of the high-speed trains operating on the Great Western and east coast lines. We have narrowed down the options to two, and we hope to give the House more information in the near future.

The hon. Member for Luton South and others were concerned about stations. We are continuing with the £150 million national stations improvement programme and the £370 million access for all programme, including £2.3 million to be spent on a scheme at Luton.

[Gavin Shuker]

Will the Minister give way?

[Mrs Villiers]

I am afraid that I cannot. I have run out of time. Birmingham New Street will go ahead, hopefully delivering economic benefits of £2 billion. Improvements at Reading will address a long-standing bottleneck, benefiting people across the Great Western line.

The Chairman of the Select Committee and others are absolutely right to say that it is crucial to get better value for taxpayers’ and passengers’ funding of the railways. Reforming our railways and reducing their cost is essential. The Chairman of the Select Committee and the hon. Member for Cheltenham (Martin Horwood) rightly expressed concerns about the high cost of Network Rail compared with other operators in Europe. We recognise fully the concerns about rail fares. To answer the shadow Minister’s question, we believe that we should share the benefits of the reduction in railway running costs that we expect the McNulty review to deliver. They will be shared between fare payers and taxpayers. We are also clear that any changes suggested by the McNulty review must protect freight operators’ interests.

There is an important role for open access, as my hon. Friend the Member for Blackpool North and Cleveleys urged me to make clear, although open access is not necessarily his only hope of direct train services between Blackpool and London. No decisions have been made yet, but it is possible that that might form part of franchised operations.

We are working closely on the northern hub. I recognise that there is a lot of support for it. Dealing with the problems identified in the project would be of great benefit to the economy of the north of England. I cannot give any guarantees today, but it must be a strong candidate for funding in the next control period.

Hon. Members have supported a list of projects. On the Swindon-Kemble line, if there were any spare funding down the DFT’s sofa, as the hon. Member for Cheltenham asked, I am sure that Swindon-Kemble would be a good candidate. However, he will appreciate that our rail budgets are fully committed. He made a good point about the improvements to resilience that the project would deliver. The hon. Member for Liverpool, Riverside mentioned the midland main line. There is a strong business case for it, but again, affordability is a concern. I am always happy to talk about Kirkstall Forge, and I look forward to the revised bid, which I believe will be made in September. It is a good scheme with significant benefits, and I hope that one day it will proceed. We will have to see whether it proves affordable, given our budget constraints.

I am grateful for the time allowed me to speak in this debate.

Informal EU Transport Council

Theresa Villiers Excerpts

Wednesday 16th February 2011 Written Statements

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

I attended the Informal Meeting of EU Transport Ministers, organised by the Hungarian presidency in Budapest and Gödöllo on 7 and 8 February. The theme was: “TEN-T revision: towards a long-term, well-balanced European transport network”.

In the plenary debates, I put forward the UK view that the future TEN-T budget should take account of the aftermath of the financial crisis and the need to put recovery on a strong footing. EU funding will be limited and should be focused on projects that deliver real benefits to the network. Cost benefit analysis should inform funding decisions. Member states should aim to do more with less, concentrating on projects that deliver the best value for money. We think that the current model should be followed, focusing funding on the core network, with some funding also available for the comprehensive network.

In the debate on the role of PPPs, I pointed out that PPP is only appropriate in selected circumstances, implementation can present challenges and requires a high level of commercial skills, and particular attention needs to be paid to the long-term budgetary consequences of its use. I cited the M6 toll road and River Severn crossings as good examples of private investment enabling major pieces of infrastructure to be constructed and the cost returned through tolling. I said that the UK Government are open to tolling as an option for brand new alignments, with potential private sector investment, but noted that we have ruled out the introduction of a national road-user charging scheme (except in relation to heavy goods vehicles).

In the margins of the event I was pleased to be able to have a meeting with the vice president of the European Commission responsible for transport, Mr Siim Kallas, to discuss a range of current issues.

During my discussion of airport security scanners with Mr Kallas, I welcomed the Commission’s general approach to the deployment of scanners. We now need to move quickly to amend existing European legislation to give airports the flexibility to deploy scanners effectively and efficiently. The decision on whether to deploy security scanners should be for member states. We acknowledge health, data protection and privacy concerns and believe that these can be addressed through existing European and national laws.

I also discussed the transport aspects of transposition of the air quality directive with Mr Kallas. I pointed out that, although we are fully committed to improving air quality, and we recognise the part that transport has to play, we are keen to ensure that the air quality targets are properly targeted at improvements in health, and are consistent with our ambitious goals to reduce carbon and to create growth.

Departmental Expenditure Limit (2010-11)

Theresa Villiers Excerpts

Tuesday 15th February 2011 Written Statements

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

Subject to parliamentary approval, the Office of Rail Regulation departmental expenditure limit (DEL) and annually managed expenditure (AME) will be increased as follows:

DEL: £792,000

AME: £243,000

The impact on resources and capital are as set out in the following table:

ATOL Scheme

Theresa Villiers Excerpts

Thursday 3rd February 2011 Written Statements

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

I am today announcing the Government’s “in principle” decision to reform the air travel organisers’ licensing (ATOL) scheme to improve clarity for consumers about its coverage and also to put the scheme’s finances back on a sustainable basis. There will be a full consultation on the details of the proposed reforms.

The ATOL scheme, operated by the Civil Aviation Authority (CAA), was introduced in the 1970s to provide financial protection for the purchase of package holidays in the event of travel company insolvency. Affected passengers are entitled to a full refund if they are yet to travel, or repatriation after completing their holiday if they have already reached their destination.

However, as a result of new ways of selling holidays and a recent Court ruling, the scheme no longer completely fulfils its intended purpose: the proportion of holidays with ATOL protection has fallen, and it can be difficult for consumers and the travel industry to know which holidays are protected and which are not. The proposed reforms will make it easier for everyone to understand which holidays are covered, and will restore protection to what looks like a package holiday but now falls outside the legal definition.

The Air Travel Trust Fund (the fund) provides the money for refunds and repatriation costs when a travel company becomes insolvent. For historic reasons the fund had no income for a number of years. As a result of this legacy, combined with travel company failures in 2008 and 2010, the fund’s deficit has increased significantly. Until it is back in surplus, it can only meet its obligations because of a Government guarantee, currently £42 million, in support of commercial borrowing facilities. Reform is needed to secure the sustainability of the fund so it can continue to provide financial protection for consumers, while reducing and eventually eliminating the exposure to taxpayers. It is envisaged that the ATOL protection contribution (APC) paid into the fund will remain at £2.50 per holiday sale until the fund is restored to health.

The last Government consulted on reforming the ATOL scheme in December 2009, and the coalition has continued work on developing these important reforms. In outline the proposed reforms would:

Create a new category of “flight plus” holiday in ATOL. This would cover holidays including a flight where the various elements were purchased within a specified short time period, and so look similar to package holidays, but are not packages as currently legally defined in the UK. New secondary legislation would be required to do this.

Ensure that where businesses sell holidays that look like packages, but where the travel agent has arranged matters so they are acting as an “agent for the customer” and so remain outside of ATOL, consumers are made fully aware of this, so that they can make an informed decision about their purchase. We are looking at using the Consumer Protection from Unfair Trading Regulations 2008 to enforce this measure.

Replace the current arrangements with clearer, standardised information for consumers that their holiday or flight is ATOL protected. The CAA has already begun discussions with the industry about a recognised document, the ATOL certificate, that would be both proportionate and fit for purpose. This can be done by CAA using its existing powers.

A consultation on the details of the proposals, including draft secondary legislation, is planned for the spring, with the aim of implementation by late 2011 or early 2012.

I believe there may also be a case for new primary legislation to address other issues in the ATOL scheme and will be considering that further in the course of this year.

Oral Answers to Questions

Theresa Villiers Excerpts

Thursday 27th January 2011 Commons Chamber

[Angie Bray (Ealing Central and Acton) (Con)]

5. What assessment he has made of the effects of the ending of the west London extension of the congestion charge zone.

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

The removal of the western extension of the congestion charging zone is a devolved matter for the Mayor of London.

[Angie Bray]

Does the Minister of State agree that one of the beneficial effects will be for those who live or try to run small businesses around the perimeter of the zone, for whom life was made very expensive? However, perhaps the biggest benefit will be for City Hall in the restoration of a reputation for proper democratic governance.

[Mrs Villiers]

My hon. Friend has a strong record in her former capacity as a London Assembly Member for representing the views of residents on this issue, as she has in her current capacity as the hon. Member for Ealing Central and Acton. There are always pros and cons to be considered in relation to the impact on business of congestion charging schemes. No doubt when the Mayor made the decision on the western extension zone he will have taken on board her concerns about the impact on small businesses on the periphery and boundary of that zone.

[Clive Efford (Eltham) (Lab)]

Notwithstanding the fact that this is a devolved matter, the Department provides a great deal of resources to the Mayor of London for traffic issues. His removal of the western extension has cut £70 million annually from his revenue stream. Did the Department express any concerns at any time about the effect of that cut on funding for future transport schemes in London? The rest of us are paying higher charges and fares as a result of that hole in the Mayor’s budget.

[Mrs Villiers]

This is a devolved matter. The settlement was established by the Labour Government, who made it clear that congestion charging matters were rightly for the Mayor of London to decide and not for Ministers in Whitehall.

[Andrew Jones (Harrogate and Knaresborough) (Con)]

6. What plans he has for the reform of rail franchising; and if he will make a statement.

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

11. What plans he has for reform of rail franchising; and if he will make a statement.

The Minister of State, Department for Transport (Mrs Theresa Villiers): On 19 January, the Government set out a new approach to franchising, taking account of the consultation that took place last summer. We expect the reforms to deliver a railway that is more responsive to passenger needs and provides better value for taxpayer investment.

[Andrew Jones]

I thank the Minister for that answer. Last week, the east coast main line announced a new direct service from London to Harrogate—the first for 20 years—after some excellent local work promoting the economic case for that service. As the new franchise requirements for the east coast main line are developed, will that economic case see Harrogate-London links built into those requirements?

[Mrs Villiers]

I thank my hon. Friend for his question. I have been impressed with the work done by him, the Harrogate chamber of commerce and Harrogate business interests to make the case for improved rail services between Harrogate and London. I would encourage them to continue that input when the consultation takes place on re-letting the east coast franchise. We will, of course, take those representations into account in our decisions on Harrogate services.

[Eric Ollerenshaw]

Given the announcement last week that the west coast main line franchise will be up for renewal, how soon does the Minister think we will see the extra carriages and, perhaps, the extra trains that we need to relieve the severe overcrowding on the line, particularly for my constituents in Lancaster?

[Mrs Villiers]

The Government will be funding 106 extra carriages on the west coast main line, which are due to come into operation with the new franchise. Some of those carriages will be available in a new train that will be available earlier, once its testing period has been completed. At that point, it will be available for Virgin to sub-lease, if ordinary commercial terms can be agreed.

[Mr David Hanson (Delyn) (Lab)]

Will the Minister give an assurance that under the new franchise services to north Wales, in particular, will not be reduced, especially given the news this week that services from Wrexham to Marylebone will cease as of Friday?

[Mrs Villiers]

We are engaged in a consultation on the level of services and the configuration that will go into the west coast main line. We fully appreciate the importance of the services in Wales, including north Wales, and I would encourage the right hon. Gentleman to take part in the consultation. Of course, we are very much aware of passengers’ disappointment at the closure of the Wrexham and Shropshire service, and we will take that on board in the decisions that we make on the west coast line.

[Alison McGovern (Wirral South) (Lab)]

Could the Minister say how the reform of rail franchising will support infrastructure investment, especially the necessary electrification on the Wrexham to Bidston line, for example, which runs through my constituency?

[Mrs Villiers]

I believe that longer franchises, which are a key part of our reform, will provide stronger incentives for private sector investment in improving stations, rolling stock and—potentially—infrastructure. The current short franchises, through which it was difficult to get a return on significant investments of that sort, made it difficult for the private sector to maximise its investment in the railways. The rail franchising reform will therefore help to deliver the sort of improvements that the hon. Lady talks about.

[Guto Bebb (Aberconwy) (Con)]

As part of the consultation on the inter-city west coast main line, will the Minister consider the negative impacts of the use of power boxes and mechanical signalling on the ability of franchise holders servicing the north Wales coast to provide an enhanced level of service to my constituents?

[Mrs Villiers]

We do not seek to micro-manage Network Rail’s decisions on signalling—we take a technologically agnostic approach to that—but we encourage it to deliver its renewals and upgrades in the most cost-effective way possible, and I am happy to pass on my hon. Friend’s points to Network Rail, so that it can take them on board in its decisions.

[David Wright (Telford) (Lab)]

The demise of the Wrexham-Shropshire service is particularly sad. Local people really valued it, not just because it provided the direct link to London, but because the staff provided a superb service. Would the Minister be willing to meet MPs from all parties with constituencies along the line to discuss how we can consider not just how open-access services operate generally, but how we can put the line through Shropshire and up to north Wales back into the west coast franchise?

[Mrs Villiers]

I would be happy to have that meeting. I encourage the hon. Gentleman, as I did the right hon. Member for Delyn (Mr Hanson), to take part in the west coast main line consultation under way.

[Duncan Hames (Chippenham) (LD)]

How will the Minister’s franchising reforms facilitate much-needed investment, both trackside and on train, in smarter signalling, such as in the world-class systems developed by Invensys in my constituency, which I would be delighted to show her, if she would be so kind as to visit Chippenham?

[Mrs Villiers]

I shall certainly try to fit a visit to Chippenham into my diary. As I said to the hon. Member for Wirral South (Alison McGovern), I believe that longer franchises with more flexibility will encourage private sector investment in the railways. Longer franchises in the past for Chiltern Railways have enabled the train operator to become involved in signalling work. However, we have to acknowledge that major infrastructure works will need to continue to attract public funding, although there is no reason to believe that rail franchising reform could not assist private sector and train operator involvement in improving signalling.

[Gareth Johnson (Dartford) (Con)]

7. What steps he is taking to reduce the incidence of people driving while uninsured.

--- Later in debate ---

[Mr Charles Kennedy (Ross, Skye and Lochaber) (LD)]

9. When his Department plans to publish its consultation on changing the law to allow UK nationals with diabetes to drive heavy goods vehicles in the UK.

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

The Department for Transport plans to publish the consultation document very soon. We welcome views from anyone interested in the proposed changes and will consider all representations before making our final decisions.

[Mr Kennedy]

I thank the Minister for that reply. She will be aware from correspondence that my question arises from a rather long-running constituency case, which is not untypical of those of other hon. Members across the Chamber. Given that the EU directive dates back to August 2009 and that we have an utterly inconsistent position in the UK—registered diabetic heavy goods vehicle drivers from elsewhere in the European Union can drive on our roads, whereas UK-registered diabetic HGV drivers cannot—can she give some consideration as to how quickly this glaring anomaly can be cleared up?

[Mrs Villiers]

We will certainly be working hard to get the consultation document out as quickly as possible. However, given that what is being contemplated is a relaxation of current road safety rules, I am sure that my right hon. Friend will agree that this is not something to be undertaken lightly. We must ensure that we take the time to consider all the relevant factors to ensure that it is safe to make the change.

[Gemma Doyle (West Dunbartonshire) (Lab/Co-op)]

10. When he plans to publish his proposals for the modernisation of Her Majesty’s coastguard.

--- Later in debate ---

[David Morris (Morecambe and Lunesdale) (Con)]

T3. Some 84% of rail users are currently satisfied with their service. Does my right hon. Friend agree that that is welcome news, and will she elaborate on that statement?

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

Obviously, we welcome the positive response from the Passenger Focus survey. We are aware that there is always a need to improve provision of services on the railways, and that is one of the main reasons why we are supporting the work of the McNulty review to get costs down, to make it easier to deliver the improvements that people want.

--- Later in debate ---

[Richard Harrington (Watford) (Con)]

T4. Many of my constituents and those of other Members were severely disrupted by the effects of the weather on airports in London and elsewhere. Does the Minister agree that the Civil Aviation Authority needs more powers to assess the situation and hold airport operators to account?

[Mrs Villiers]

My hon. Friend has raised an important issue. There was real concern about the way in which Heathrow dealt with the severe weather. That is one of the reasons for our plans to reform airport regulation, which include a new licensing system that will indeed give the CAA more powers to ensure that airports are properly prepared for winter.

[Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

The marine environment is dangerous, and we are fortunate to have Stornoway coastguard, which is based in my constituency. However, I have been told that the Government’s reorganisation proposals are not accompanied by any proper risk assessment. Is that true?

[Mr Robert Buckland (South Swindon) (Con)]

T5. Can the Minister give us a likely date for the decision on electrification of the Great Western line to Swindon and beyond?

[Mrs Villiers]

My hon. Friend is a staunch campaigner for further electrification. We have already announced electrification of the lines to Oxford, Newbury and Didcot, and we will shortly announce what further electrification of the Great Western line can be achieved in co-ordination with the linked inter-city express programme.

[Andrew Miller (Ellesmere Port and Neston) (Lab)]

You will recall, Mr Speaker, the procedural exchange that you and I had earlier this week about the failure of the Department for Transport to answer questions about river and port pilotage. The first question has now been answered inaccurately; as for the second, the Department refuses to publish the advice that it has received. This is a fundamental matter of safety. Will the Secretary of State examine it personally and review the decision to refuse to publish the information, in order to give us confidence that our pilots are properly trained?

--- Later in debate ---

[Dame Anne Begg (Aberdeen South) (Lab)]

Apropos the disruption at Heathrow, the temperature has dropped again today. Ministers need not go abroad to find examples of the way in which airports can cope with snow. Aberdeen airport, which is also owned by BAA, managed to cope perfectly well with 2 feet of snow, while Heathrow was closed for nearly two weeks because of 2 inches of snow. What guarantee will the Government give passengers—not just those like me, but the many people who travel through Heathrow, which is one of the major hubs—that such disruption will not occur again?

[Mrs Villiers]

We must be realistic. When the weather is as severe as that which we witnessed before Christmas, there is bound to be some disruption. I pay tribute to airports such as Aberdeen, which worked very hard to deal with it—as did Gatwick—but we must recognise that Heathrow airport faces special challenges that make it tougher to respond to such conditions. Heathrow is conducting a review, and the Department is carrying out an investigation through the South East Airports Taskforce. There may be lessons that we can learn from measures taken by other transport systems, such as the imposition of emergency timetables when severe weather seems likely to reduce capacity significantly.

[Nicky Morgan (Loughborough) (Con)]

T7. Some of the residential areas in Loughborough face considerable pressure on parking as a result of having houses occupied by students, each of whom brings a car to the town. Can the relevant Minister confirm that under this Government local councils, communities and universities will continue to be able to implement local solutions that suit the local needs of the town?

--- Later in debate ---

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

T8. I know that the Minister is aware that Fleetwood has a railway line that has been redundant since the 1960s but which has most of its infrastructure intact. What hope can she offer my constituents that there may be a chance of reopening the line and providing much-needed regeneration to the town?

[Mrs Villiers]

I know that my hon. Friend has championed this cause, and I enjoyed my visit to the disused rail line. Programmes such as he outlines can confer significant local benefits, but it is primarily for the local authorities to identify the funding to restore railway lines and, importantly, to identify the funding for any ongoing subsidy that is needed. Local authorities may well wish to consider those options in order to enhance economic growth in their areas.

[Grahame M. Morris (Easington) (Lab)]

What assessment has been made of increasing fuel prices and the rising costs of motoring in rural areas, particularly for lower-income households?

Cycling in England

Theresa Villiers Excerpts

Friday 21st January 2011 Commons Chamber

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

As is customary, I congratulate my hon. Friend the Member for Cambridge (Dr Huppert) on securing the debate and on his eloquent contribution and his passionate support for cycling.

I strongly agree that cycling generates important social, environmental and health benefits. The role it can play in relieving congestion, improving air quality and reducing carbon emissions is clear and well accepted. Regular cycling has other important benefits, in particular for health, reducing by half many chronic illnesses, including heart disease. Cycling can also help us to address the obesity problems that cost the NHS and wider society around £20 billion annually.

As well as the wider benefits, we should not lose sight of the simple truth that cycling can be a great way to get around—a convenient and low-cost way to make short journeys. The key question is how we can lift the barriers that deter people from regular cycling. The coalition agreement makes a commitment to supporting sustainable travel, including walking and cycling. The Department for Transport will be investing £58 million in cycling over the current financial year. Cycling receives further Government support through local transport plan funding to local authorities and the DFT grant to Transport for London.

On Wednesday, as we have already heard, the Under-Secretary of State for Transport, my hon. Friend the Member for Lewes (Norman Baker), published a White Paper on local transport alongside bidding guidance for the new local sustainable transport funds. I thank my hon. Friend the Member for Cambridge for the support he has expressed for that important initiative. I believe the measures announced by my hon. Friend the Under-Secretary will prove to be a significant step towards realising two of the coalition’s most important objectives—creating growth and cutting carbon. The White Paper sets out how we can encourage the uptake of more sustainable modes locally, supported by the £560 million allocated to the new sustainable transport fund.

In answer to the questions put by my hon. Friend the Member for Cambridge about the relative importance to be placed on creating growth and cutting carbon, the answer is that weight will be given to both, taking into account each scheme’s overall merits. He will realise that in many cases similar actions can both generate economic benefits and cut carbon.

It will be up to local authorities to decide what goes into their bids, but the case for cycling is so compelling that I am certain many councils will want to include cycling projects in their bids to the fund. We therefore expect cycling programmes to attract substantial support from the new fund. We are strongly encouraging local authorities to work with voluntary and private sector partners when putting forward their bids. That will open up opportunities for the involvement of groups such as CTC, Sustrans and the Campaign for Better Transport.

As my hon. Friend pointed out, our first commitment in relation to the local sustainable transport fund is on cycle training. The coalition has confirmed Bikeability funding for the remainder of the Parliament, confounding some of the anxieties created by the abolition of Cycling England. Learning to cycle safely and confidently on today’s roads is a valuable life skill and a key part of our strategy to promote cycling. The national cycle training scheme currently receives funding of £11 million, providing up to 275,000 Bikeability training places. Earlier this week, we announced a further £11 million for Bikeability training in 2011-12.

To get first hand experience of Bikeability, I decided to have a go myself. I very much enjoyed being taught the level 1 and 2 courses by David Dansky of Cycle Training UK. At the end of the lesson, I certainly felt my hand signals had improved and were much more positive.

Recently published research demonstrates how highly Bikeability is regarded by parents and the children who take part in the scheme. Children reported to the survey that, after the training, they generally felt safer and more confident when riding on the road. It is clear that parents feel more confident allowing their children to ride on the road, because the child’s ability to judge risks will have been strengthened by the training they have received.

To complement our education programmes, we will set aside £13 million from the fund in 2011-12 for links to school, bike club and walking to school initiatives, delivering additional cycle parking and infrastructure changes for safer links to schools—something my hon. Friend mentioned.

In preparing their bids for money from the new fund, local authorities might well wish to emulate the approach taken in the cycling demonstration town programme, which has delivered impressive results. Darlington managed to double cycling in four years. In the first six towns that took part, there was an average increase of 27% in the number of people cycling regularly. Assessment of the programme indicates that the congestion, health and other benefits—benefits of the sort that my hon. Friend mentioned, to do with air pollution and the public realm—generated by the programme were three times greater than the amount of money spent on the programme.

My hon. Friend expressed concerns about problems integrating cycling journeys with public transport. Again, that could prove another fruitful source of ideas for local authority bids to the local sustainable transport fund. The bike ’n’ ride demonstration projects running over recent years are a model worth considering for the future. They have improved facilities for cyclists at rail stations run by South West Trains, Merseyrail, Northern and Virgin Trains. Hundreds of additional cycle parking facilities have been provided at stations run by those train operators, together with hire facilities at Waterloo, Richmond and Southport. That project complements wider Department for Transport work to support the establishment of cycle hubs at key rail stations, the hub in Leeds being the first to open, last September.

The announcement that I made earlier this week on a move to longer rail franchises will give train operators stronger incentives to invest in improving stations. That, of course, could include the provision of cycle parking. Chiltern Railways is an example of a longer franchise; it was able to deliver a considerable uplift in cycle parking places, but as we judge the bids coming in for rail franchises, we will certainly look at the ideas that bidders and train operators have for improving linkages with cycling, and for making it easier to integrate cycling into the rail system.

The Department continues to monitor the voluntary station travel plan pilot schemes, which can provide clear benefits to cyclists as part of efforts to integrate rail successfully with other sustainable modes of transport. My hon. Friend highlighted the cycle to work scheme; it continues to provide tax incentives that enable employers to help those who wish to switch to commuting to work by bicycle. A concern here is the judgment in the AstraZeneca case; the Government are currently looking at how that case might impact on the scheme to see whether we can resolve any resulting difficulties.

My hon. Friend rightly highlighted safety issues as being one of the barriers that can sometimes deter people from cycling. It is not really for me to start dictating to the Crown Prosecution Service about their decisions on prosecutions—I am sure that he anticipated that answer—but there are a range of other ways in which the Government can help to tackle concerns about road safety and cycling. First, of course, The Highway Code emphasises the importance of watching out for cyclists. I agree with my hon. Friend that strengthening driver awareness of cyclists should be an important priority in our continuing work to improve the driving test and driver training. It is already very much a focus of driver training and the driving test, but we acknowledge the continuing importance of that work.

Secondly, we encourage local authorities to make their roads safer for all users. We stand ready to offer advice on the options available, including the 20 mph zones that my hon. Friend supports. However, I am sure that he will agree that such decisions need to be taken locally, in the light of local circumstances. Thirdly, we are providing local government with the funding to improve cycle routes and networks through local transport plans and, in future, via the local sustainable transport fund.

My hon. Friend is right: we should be careful not to overestimate the risks associated with cycling, in case we find ourselves being part of the problem and deter people from doing more cycling. It is worth noting that the health benefits offered by cycling clearly outweigh the road safety risk. We still need to make our streets more welcoming to cyclists. The DFT’s “Manual for Streets” emphasises the importance of providing for cyclists and pedestrians. My hon. Friend is right to say that a user hierarchy recommended in that document places pedestrians and cyclists at the top. “Manual for Streets 2” was recently published after a lot of input from different stakeholders. My understanding is that those documents are heavily used by local authorities in their work on our roads and streets. The uptake of those documents is more extensive than my hon. Friend has been led to believe.

In response to my hon. Friend’s point about signage, I, too, very much welcome the trial of the “No entry—except cycles” sign. He is right: it has been a very long time coming. The results of the trial will be part of the signs review included in the White Paper which was announced this week by my hon. Friend the Under-Secretary. Like my hon. Friend the Member for Cambridge, I hope that that sign will be seen more widely on England’s streets in future.

As for road racing, officials from the Department for Transport, the Department for Culture, Media and Sport and the Home Office have been working with British Cycling and the Association of Chief Police Officers to explore ways of improving procedures for holding cycle races on public roads and addressing the issues that my hon. Friend rightly raised. My hon. Friend the Under-Secretary met British Cycling representatives earlier this week, and we have identified an existing legal power that enables the police to give directions for places at which traffic must stop for the race, and for cycle race marshals to hold a sign for that purpose. It is not sorted yet, but we hope that that might provide a solution to the major concerns expressed by the cycle racing community. Working with British Cycling, we have identified amendments to regulations to improve procedures for authorising cycle races, and the Under-Secretary is keen that they should be introduced.

My hon. Friend the Member for Cambridge concluded by expressing concern about the Department for Transport developing its own cycle journey planner when good websites such as CycleStreets are already available. Given the importance of the issue, there is room for Government action to complement the websites provided by the private sector, particularly given our focus on providing novice cyclists with the information that they need to encourage them to go out cycling, so that they are confident they can identify easier and safer routes.

We have begun to see real progress on cycling. My hon. Friend discussed the long history and success of cycling in Cambridge. London, too, is a great success story, as the number of cyclists in the capital has more than doubled over the past decade. Some 27,000 people now enter central London by bike every day. That shows that with the right measures it is possible to make a difference and create the right conditions for cycling to grow, generating the health, congestion, carbon and quality-of-life benefits that he rightly highlighted.

In conclusion, the 19th-century reformer and suffragette, Frances E. Willard, wrote in a preface to one of her books:

“She who succeeds in gaining the mastery of the bicycle will gain the mastery of life.”

I am not sure whether that overstates things, but there is no doubt about the benefits that cycling can bring for quality of life. I strongly recommend it to all hon. Members, and I look forward to working with my hon. Friend in encouraging greater uptake of cycling by members of the public.

Question put and agreed to.

Rail Service (West Anglia)

Theresa Villiers Excerpts

Wednesday 19th January 2011 Commons Chamber

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

I congratulate my right hon. Friend the Member for Saffron Walden (Sir Alan Haselhurst) on making a distinguished contribution on his return to debating from the Back Benches. I also congratulate him on securing a debate on such an important topic and for giving the House the opportunity to discuss the West Anglia rail line and the future for the franchise on the network.

My right hon. Friend assiduously defends the interests of his commuting constituents, and I am grateful for his frequent representations and suggestions for ways to improve how our railways are run. His long-standing interest and expertise on transport matters no doubt aids him in being such an able and effective advocate for his constituents.

Before I respond to the points made by my right hon. Friend, I shall update the House on the franchise arrangements on the West Anglia route. Last September, the Department for Transport issued a notice to National Express East Anglia exercising the Government’s contractual right to extend the current franchise by a little over six months. A written statement to the House in December announced that a short management contract would be let for the Greater Anglia franchise, which would be in place from February 2012. As my right hon. Friend pointed out, it was expected that a long-term franchise would begin in July 2013. The competition to let the short-term interim contract started last week.

The timetable has been put in place so that when we let the long-term Greater Anglia franchise, we can take on board the outcome of the recent consultation on rail franchising and the findings of the rail value for money study, which is chaired by Sir Roy McNulty. The study is aimed at reducing the costs of running the railways, thus making it easier to deliver the kind of improvements that my right hon. Friend has passionately called for in the debate.

Sir Roy McNulty’s work to date indicates that better alignment of incentives between Network Rail and train operators is a vital way to get costs down on the railways. We believe that the Greater Anglia franchise is a promising candidate for such a reform because it is less complex and more self-contained than some other lines, and there is already some alignment between the area covered by the franchise and Network Rail’s internal regional structures.

My right hon. Friend clearly highlighted the crowding problems on the lines serving his constituency and his general concern about the quality of the rolling stock that his constituents use every day. The Government are funding increased capacity on the National Express East Anglia franchise. One hundred and twenty new carriages will enter service over the next few months, with the first of the new rolling stock in operation from March. Although, as we have heard, those will be deployed primarily on the Stansted Express route, it is worth noting that during the peaks, that line serves commuters as well as airport passengers. I also note that my right hon. Friend mentioned his concerns about the growth of Stansted and the sufficiency of the supporting infrastructure.

[Robert Halfon (Harlow) (Con)]

I thank my right hon. Friend for giving way, and heartily endorse the comments of my right hon. Friend and constituency neighbour the Member for Saffron Walden (Sir Alan Haselhurst). I welcome the Government’s plans to invest in improving the rolling stock. Obviously, hard-pressed Harlow commuters who are crushed every day, particularly in the rush hours, would welcome any signal that the Government can accelerate the plans to improve the rolling stock.

[Mrs Villiers]

I am grateful for my hon. Friend’s intervention. As I said, the rolling stock is due to come into service pretty soon—in the next few months in the case of the Stansted Express. My right hon. Friend the Secretary of State made an announcement about the provision of rolling stock elsewhere on the national rail network. Negotiations are under way with various train operators about those additional carriages.

My right hon. Friend the Member for Saffron Walden will appreciate that, had the previous Government’s misguided plans for a second runway at Stansted gone ahead, it would have placed even more pressure on the surrounding infrastructure. That is one of the many reasons why the coalition has firmly ruled out a second runway.

As my right hon. Friend knows, National Express has also decided to operate some of the new units, which were originally destined for the Stansted Express, on Cambridge services. I pay tribute to my right hon. Friend’s successful lobbying on that, because I am sure that it played an important part in the decision to deploy some of the new rolling stock carriages on Cambridge services. The introduction of new units on the Stansted Express and Cambridge services will, in turn, free up carriages that will be used to strengthen services across the Anglia network.

On 12 December National Express East Anglia introduced a new timetable, which saw 68 additional carriages brought into service, providing more than 4,000 additional seats for passengers during peak times. In addition, I can confirm that my officials are in discussion with National Express East Anglia to determine whether some Cambridge services can be speeded up from December 2011.

My right hon. Friend expressed his concerns about the relative speed of services. The change in times is largely due to the fact that the trains are stopping at more stations to meet the increasing demand from passengers at different locations. That is part of the reason for the change in journey times that he highlighted.

My right hon. Friend also set out his grave concerns about the poor performance of National Express East Anglia rolling stock during the sub-zero temperatures in November and December. Unfortunately, he is correct that the type of rolling stock operated on the West Anglia route has problems during the kind of severe weather that we experienced before Christmas. I am afraid that that has also been apparent with other train operators who use the same kind of vehicles.

Problems include snow ingress into traction motors and freezing door mechanisms. In some instances, the Kilfrost used to treat platforms affected door runners, stopping doors from closing. Those problems were compounded by issues with Network Rail’s infrastructure, including freezing points and icicles forming under bridges and interfering with overhead lines.

My officials met National Express East Anglia to discuss what actions they had taken to mitigate the effects of the extreme weather. Those include applying antifreeze to doors and deploying additional staff at stations along the route to try to deal with problems as they arise. Modifications to the traction motors are being investigated, and other mitigating actions are being urgently considered by the train operators in preparation for any recurrence of severe weather. Throughout the crisis, officials were in constant touch with the rail industry. The Secretary of State and I were in contact with the senior management of Network Rail and of a number of different train operators. Although disruption is inevitable with extreme weather conditions, we need to ensure that transport operators work as hard as they can to secure the best service deliverable in the circumstances.

In December, the Secretary of State asked David Quarmby to conduct an urgent audit of transport operators’ performance in England and their compliance with the recommendations that he made earlier in the year on winter resilience. The audit emphasised the importance of improving the information given to passengers in the event of disruption, and concluded that the rail industry is rather over-dependent on electronic provision of information. The Department for Transport expects transport operators to act on David Quarmby’s report.

As demand on the West Anglia route increases, changes will need to be made to the way in which services are delivered. Our response will depend on the extent of demand growth and, of course, on affordability. When competition is under way for the long Anglia franchise, starting in 2013, we will run a consultation to hear from local stakeholders what their priorities are for the rail network. I do not propose pre-empting that competition, but my right hon. Friend the Member for Saffron Walden urges bidders to consider putting forward proposals for new rolling stock on the line. Bidders may well want to make such proposals. I am sure that they will be interested in hearing from my right hon. Friend and other MPs what local people’s priorities are for the much needed improvements to the railways. Bidders for the longer franchise will also need to evaluate likely growth and passenger demand over the coming years.

We believe that our new approach to rail franchising, which my right hon. Friend mentioned, with longer and less prescriptive franchises, will incentivise train operators to invest in improved services, and better stations and rolling stock, as he suggests they should. We will require bidders to take into account stakeholder aspirations in the improvements that they propose making to passenger services under the Greater Anglia franchise. We will need to be confident that those competing for the franchise have fully understood which improvements matter most to the communities served by the line. We also want them to generate ideas on how to deliver those improvements in an affordable way.

My right hon. Friend hinted at the range of upgrades to the Anglia network that have been discussed. He felt that there was a need for additional tracks to deal with the overcrowding problem and to improve services. Network Rail’s route utilisation strategy recommended that the number of tracks on the route between Tottenham Hale and Broxbourne be increased from two to four, which is what my right hon. Friend called for. However, there may be alternatives that address the issues that the project is designed to solve, such as passing places on the line. As my right hon. Friend pointed out, there are mini and maxi options. The relative cost of all the options would have to be carefully assessed. As he acknowledged, no funding has yet been committed for delivering Anglia route utilisation projects beyond 2014, but our goal is to improve services for passengers, and that may well include infrastructure works in the next railway control period. I am sure that he will agree that decisions will have to be based on affordability, given the crisis in the public finances that we inherited from our predecessors.

A key goal in letting the Anglia franchise that commences in 2013 is to generate ideas for improving services, and to listen to the representations of people such as my right hon. Friend, who know well the concerns of their commuting constituents. The coalition’s franchise reforms, announced today in a written ministerial statement, are designed to ensure that the rail industry performs more efficiently and invests more in the kind of improvements highlighted by my right hon. Friend this evening.

We believe that our predecessors tried to exert too much control from Whitehall through lengthy and detailed specifications and complex management regimes. On too many issues they attempted to second-guess the professionals whose job it is to run train services. A significant downside of this command-and-control approach is that it provides the private sector with only limited incentives to invest in the facilities and improvements that passengers want. It also leaves the private sector with little scope to deploy innovation and enterprise in responding to passenger concerns.

That is why we have proposed a new approach, which chimes in with much of the appeal that my right hon. Friend made this evening. We will set demanding outcomes for the rail industry to achieve, but we will give the industry more flexibility and freedom in deciding how best to deliver those outcomes for passengers. We intend to reduce the involvement of the Government in the way services are configured, while continuing to mandate the provision of core levels of service.

I firmly believe that I can assure my hon. Friend the Member for Harlow (Robert Halfon) that longer franchises will provide a stronger incentive for private sector investment in rolling stock, in stations and even potentially in broader infrastructure improvements. They will also make it easier for operators to invest in the long-term relationships that are so crucial for delivering reliable services and a successful railway—relationships with the work force, Network Rail, local authorities and, of course, passengers. As well as forming part of our strategy for reforming the franchise system, strengthening these pivotal relationships will be part of the valuable work being done under the auspices of the McNulty review to reduce the cost of running the railways for the benefit of both groups that fund them, taxpayers and fare payers.

Question put and agreed to.

Rail Services (West Kent)

Theresa Villiers Excerpts

Wednesday 19th January 2011 Westminster Hall

[Sir John Stanley (Tonbridge and Malling) (Con)]

This winter, my rail-travelling constituents, of whom there are a large number, have experienced unprecedented disruption in their rail services, and have had to fork out for an unprecedented hike in rail fares. This debate is timely and I am very glad to have been able to secure it. I am delighted to see in their places many of my hon. Friends from west Kent constituencies. I want to focus on four issues: specific rail services; the enormous increase in rail fares; the frankly dismal performance of Southeastern, Southern and Network Rail in trying to cope with the difficult weather conditions in December; and the financial penalties regime that applies to train operating companies.

As the Minister knows from the meeting that we had with her in the House of Commons in July 2010, the biggest single rail services issue in my constituency is the axing of services into the key London termini serving the City—Cannon Street, Charing Cross and London Bridge—on the Maidstone East line. Once again, I must stress to the Minister the truly devastating impact that that has had on my constituents and on the constituents of others along the Maidstone East line. As a result of those services being axed, individuals have had to move house, move their children’s schools and, in some cases, move jobs. Where they have chosen to stay put, they have had to incur substantial extra travelling time and cost driving to stations all over Kent and, in some cases, to south London to gain access to a station with a better rail service to London.

I was encouraged to receive the Minister’s reply in November, in which she said that she was considering options for dealing with this situation. One option, revealed to us in the meeting that Kent MPs had in December with the managing director of Southeastern, was to establish peak-time services on the Maidstone East line into Blackfriars station from May 2012, when its rebuild finishes and new platforms become available. Is that one of the options that the Minister has under consideration? I hope that she will also be able to give us, in her reply to this debate, information about the other options that she has under consideration. I would be particularly grateful for her assurance that, before any final decision is taken on which option to follow, the range of options put before her will be made public and that MPs, rail traveller organisations, local authorities and individual rail travellers will have an option to put their views on those alternatives to the Minister before any final decision is taken.

The other rail service to which I would like to refer specifically and which was axed under the previous Government is the through-rail service on the Tonbridge to Redhill line to Gatwick. We now have, frankly, the ludicrous position where Gatwick is the second largest airport in the UK—2 million people in Kent use it every year—and it is impossible to get a train service from any rail station in Kent, on a through-service basis, to Gatwick airport. The coalition Government pride themselves on their green credentials, but I have to point out that access to Gatwick from Kent is about as non-green as it is possible to be. I hope, therefore, that the Minister will be able to assure us that she and the Secretary of State will look with considerable urgency at the need to restore the through-rail service from Kent to Gatwick airport. That is a necessity and would be highly valued by the people of Kent.

I would like to come to two significant policy points that have a bearing on rail services but cover a wider policy issue. First, the Minister is a London MP and will therefore understand that there is an inevitable tension between the interests of commuters inside London and those who commute from outside London, because capacity is limited. Last year, in my constituency, I had a situation in which Transport for London unilaterally took over critically important train paths on the Uckfield line, used by Uckfield line commuters trying to get to London, for East London line services. That had devastating consequences for my constituents from Edenbridge in terms of overcrowding and inadequate capacity. This year, we hear that Transport for London is now trying to get Maidstone East line trains to stop at additional stations in London, adding still further to the inadequacy of the services on the Maidstone East line in terms of additional journey time and overcrowding. It is imperative that the Minister and the Secretary of State hold the ring between the interests of those who commute to London from outside the city and those who commute to the centre of the capital from inside. There has to be a fair and reasonable balance between those two competing interests and limited capacity.

Secondly, it is not reasonable to create a position in the commuter areas where train operating companies can axe individual services almost at will. In commuter land, individual families—huge numbers of them—make important decisions and lay out substantial sums of money on the assumption that current rail services will continue. That is the basis on which they buy their homes and decide to send their children to particular schools and, in some cases, whether to accept a particular job. It is simply not reasonable for those people to then find that, almost with no notice, those rail services, on which they are critically dependent for their family life, suddenly disappear. I therefore put it strongly to the Minister, and through her to the Secretary of State, that when they come to their review of franchising policy, they must avoid a situation in which train operating companies can turn individual services on their lines on and off like a kitchen tap. That is simply not acceptable or reasonable, given the massive decisions that individual families make when they locate to a village or town with a particular rail service and a particular station.

On rail fares, it is wholly unreasonable to put them through the roof at a time when people’s incomes are either frozen or, in many cases, significantly reduced. That is precisely what has happened to west Kent rail travellers. In west Kent, we feel particularly aggrieved on two scores. First, we feel aggrieved because Southern and Southeastern have justified their fare increases by virtue of investment. I do not deny that Southeastern has made investment, but the issue for us in west Kent is that our rail travellers cannot get any benefit from its two most significant investments. The investments that it has made, under the terms of the integrated Kent franchise, are on the channel tunnel rail link route domestic services into St Pancras and the high-speed services now available on the north Kent line. Those services are of no benefit or use whatsoever to our constituents and rail travellers.

Precisely for that reason, when the integrated Kent franchise was first let, I made strong representations to the then Secretary of State that finances for the channel tunnel rail link domestic services should be ring-fenced. I foresaw exactly what has happened, which is that those of us in west Kent would have to pick up a good proportion of the bill for the financing of those services. Our rail travellers have to pay substantially increased fares as a result of that investment.

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

I would like to reassure my right hon. Friend that the RPI plus 3% formula for Kent, which I shall address in my remarks, is not related to high-speed services but to the rolling stock. It was added to the lines on conventional services and is not related to High Speed 1.

[Sir John Stanley]

I am glad to have my right hon. Friend’s assurance, which brings me to my second point. The statement that she just made presents me with even more of a puzzle and sense of grievance than I had previously.

The second point of grievance for west Kent rail travellers is the fact that their rail fare increase is substantially greater than those being faced by commuters on other lines. For example, on the Brighton line, which is operated by First Capital Connect, the fare increase is 3.1%, but the increase for Tonbridge line commuters is 11.8%. I cannot see any reason or justification for why the fare increase for my constituents commuting from Tonbridge should be nearly three times as much as the one for those who commute from Brighton.

I put it to my right hon. Friend that it is imperative, within the limits of the present contractual arrangements entered into by the previous Government, that we re-establish a fairer and more reasonable fare regulation regime. After all, the companies are in effect monopolies, and monopolies tend to exploit. Therefore, one has to couple monopolies with effective and firm regulation, but all the evidence so far, as far as Southeastern and the people of west Kent are concerned, is that a firm and fair regulation system simply does not exist.

I said in a speech almost exactly two years ago, on 20 January 2009:

“I must put it to the Minister that the Government’s policy, as far as the thousands of commuters in the south-east are concerned, is resulting in one very clear trend: our commuters—our constituents—are paying ever more for ever less.”—[Official Report, 20 January 2009; Vol. 486, c. 727.]

What happened over the cold weather period is that our constituents and commuters actually were paying ever more for no services at all on several days.

My first question to the Minister is about whether she will tackle Southeastern and Southern to bring in a system of reimbursement for rail travellers for the days on which they have paid their fares but are not able to travel. It seems wholly wrong that someone can pay a fare through a season ticket, whether annually or monthly, but not be able to get reimbursement.

A fundamental point I must put to the Minister is that it was shown during the bad weather in December that the investment by Southeastern, Southern and, most particularly, Network Rail has been totally inadequate to deal with severe weather conditions. The franchise arrangements need to be changed to ensure that we have all-weather services.

--- Later in debate ---

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

I congratulate my right hon. Friend the Member for Tonbridge and Malling (Sir John Stanley) on securing the debate on west Kent rail services.

I note the array of Kent MPs who have come to express their concerns today, namely my hon. Friends the Members for Chatham and Aylesford (Tracey Crouch), for Maidstone and The Weald (Mrs Grant), for North Thanet (Mr Gale), for Dartford (Gareth Johnson) and for Sevenoaks (Michael Fallon).

I cannot think of a set of MPs more assiduous on rail matters than those gathered in the Chamber today. In particular, my right hon. Friend the Member for Tonbridge and Malling scrutinises the performance of train operators and Network Rail in his constituency with the greatest diligence, and he holds the Government to account when their decisions impact on passengers. He has expressed serious concerns today.

Before turning to the details that my right hon. Friend has raised, I emphasise the commitment of the coalition to investment in rail as a vitally important part of our transport system and the importance that we devote to improving services for passengers, addressing reliability problems such as those that my right hon. Friend has highlighted.

In the past, the axe has tended to fall first and hardest on infrastructure projects, including rail, following a spending spree. The Government have sought to break away from that, because we know the enormous importance of the rail network to our economy and, of course, to thousands of commuters throughout the country. Over the next four years, we will invest £18 billion in rail capital projects, on top of the money spent day to day on funding rail operations on the network, on infrastructure and on the subsidy for passenger train services. The Southeastern franchise is in receipt of the highest level of subsidy of any train operator in London and the south-east.

We are focused on dealing with capacity issues on services in Kent, Sussex and Surrey. We have secured the funding for Thameslink to be delivered in its entirety, albeit over a slightly longer time frame than originally intended. That major investment programme will virtually double the number of north-south trains running through central London at peak times, delivering up to 1,200 new carriages and providing commuters in Kent, Sussex and Surrey with a wide range of new journey opportunities to central London and beyond.

On the timetable issues highlighted by my right hon. Friend, December 2009 saw a radical overhaul of services throughout the county of Kent, delivering approximately 200 additional services per day as well as the introduction of the UK’s first domestic high-speed services. Unfortunately, with change on that scale, the concerns of people on different parts of the line will always mean conflicting interests and trade-offs. However, it is important that such timetable changes are properly consulted on. My right hon. Friend would like me to guarantee that there will be no changes in future to current timetabling arrangements. It would not be wise for me to give that assurance, although I can give an assurance about the importance that the Government place on ensuring that train operators consult the communities affected properly when making major timetabling decisions.

I am very much aware of the constituents of my right hon. Friend who are unhappy about the impact of the December ’09 timetable on the services at their station. As we heard from my right hon. Friend, I met him and others who are in the Chamber today at a meeting to discuss the issues, and they urged me to reassess the decision taken by the previous Government to remove direct services from Maidstone East to Cannon Street. I agreed to review the business case for the service and to look again at Labour’s decision not to introduce the service.

Following initial evaluation of the business case, I asked my officials to work with Southeastern to assess a range of options that could improve services to stations in the Maidstone area. That work is ongoing, and I am not as yet in a position to share any conclusions with my right hon. Friend or the Chamber, but I hope to write to him about the conclusions by the end of February. We are still assessing the different options. However, I emphasise that, given the current state of the public finances, changes will only be possible if they do not require funding from the Government in addition to the substantial sums already subsidising the Southeastern franchise and the infrastructure supporting it.

My right hon. Friend raised the Uckfield line issues resulting from Transport for London’s decision to strengthen services on the East London line. Again, that is a controversial matter. Local authorities are involved in deciding how rail services will be configured through a system of increments and decrements, which was what operated in that case. However, I emphasise that decisions on such changes must always take into account the interests of all the communities affected.

I can give an assurance to my right hon. Friend that the Government, in the decisions they take on the configuration of rail services, very much take on board the interests of those who live in London and those who live outside. In response to his concerns about whether his constituents are getting proper consideration in such decisions in comparison with people who live inside London, it is important to treat both groups fairly.

Looking ahead, the completion of Thameslink work at London Bridge in 2018 will trigger another extensive recast of train services throughout much of the county of Kent. Network Rail is developing options for the shape of those services from 2018, but decisions will not be made for some years yet. However, my right hon. Friend’s input into those decisions will be very welcome.

A number of my hon. Friends have expressed concern about disruption to rail services in Kent as a result of the severe weather in November and December. Throughout the crisis, officials were in constant touch with the rail industry, and the Secretary of State and I were also in contact with senior management at Network Rail and at the various train operators. Some disruption is inevitable in extreme weather conditions, but we need to ensure that transport operators work as hard as possible to deliver the services that are feasible in such circumstances.

On reliability as opposed to cancellations and the perverse incentives that my right hon. Friend is concerned about, I have urged the rail industry to consider how it assesses punctuality to ensure that it works on overall reliability as well as seeking to minimise cancellations and instances of significant lateness.

[Tracey Crouch (Chatham and Aylesford) (Con)]

Will the Minister give way?

[Mrs Villiers]

Unfortunately, I have only a few minutes left.

The Secretary of State also asked David Quarmby to audit the performance of rail operators during the severe weather conditions, and his conclusions make it clearer than ever that rail operators and Network Rail must do much better on the provision of information to passengers about the new timetables imposed as a result of severe weather conditions. We are looking to the rail industry to respond to and learn lessons from what happened, and to do much better on providing accurate information to passengers about the impact of disruption.

We are also urging Network Rail to address the fragility seemingly revealed in the infrastructure on the part of the rail network served by Southeastern. Network Rail is looking to extend its trial on heating the conductor rail at key locations. It is also working to test the use of de-icing equipment on passenger trains.

Last week, I met senior representatives of the rail industry to assess overall performance after the severe weather. I singled out Kent and emphasised to Network Rail that improving the performance of the rail infrastructure used by the Southeastern franchise is vital. The rail industry’s national task force will, as a result, be reviewing operational performance of Southeastern and Network Rail in Kent. I emphasise that the review will not be limited to the adverse weather episode and will cover general performance levels. I expect senior figures from the operator and from Network Rail to discuss the work of the national task force with me.

The compensation and penalty arrangements that my right hon. Friend asked about are set out in the franchise. We take every step to ensure that train operators, whether Southeastern or anyone else, comply with their obligations. The passenger charter and compensation arrangements have to be regularly audited by an independent body. The penalties regime is also kept under review. I have no reason to believe that the figures produced by Southeastern have been inaccurate, and the franchise requires independent auditing.

Rail Franchising Reform

Theresa Villiers Excerpts

Wednesday 19th January 2011 Written Statements

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

I am today launching two publications on rail franchising. The first sets out the Government’s current thinking on franchising, taking account of the results of the July 2010 consultation, “Reforming Rail Franchising”. That consultation proposed a variety of policy changes. It made clear our determination to deliver a railway that takes greater account of passenger needs; provides value for taxpayer investment; and delivers the right incentives for operators.

Since the close of the “Reforming Rail Franchising” consultation in October 2010, the Department has carefully considered the full range of responses, and has discussed the ideas in more detail with industry representatives.

We are now publishing the results of that analysis. Key principles emerging from that work include:

(i) the specifics of each franchise will be decided on a case-by-case basis, with bidders having a greater role in helping Government define the specification;

(ii) we will set demanding outcomes for operators to deliver but we will give them more flexibility to decide how best to achieve those outcomes, giving greater space to operators to plan and run their services in a more commercial manner;

(iii) longer franchises should expand the opportunity for operators to invest in improvements as well as enabling them to strengthen their working relationships with Network Rail and other key stakeholders.

We also believe that it is vital that the cost of running the railways comes down.

The second publication is a public consultation for the new InterCity West Coast (ICWC) franchise. A notice was placed in the Official Journal of the European Union (OJEU) last week at which time a formal accreditation process for bidders also started.

Our overall aim for the new franchise is to take as a starting point the much enhanced operations of recent years and improve these still further, while delivering value for money and meeting affordability requirements.

The ICWC franchise will build on the new timetable that was introduced in December 2008 and made possible by the £9 billion of public funds invested in infrastructure enhancement on the west coast main line. This upgrade has shortened journey times and enabled more trains to be run. It has also delivered a more regular service timetable to Birmingham and Manchester.

Bidders for the franchise will be required to make proposals for the most advantageous deployment of the four additional 11-car Pendolino trains that will be available to them. These new trains will enable the new franchise operator to offer more capacity, more frequent trains and shorter journey times to various locations.

The new operator will need to consider how best to improve the performance and reliability of long distance services and the quality of service received by passengers across the franchise. They will be expected to put forward ideas for improving the passenger experience on board trains, providing better service information for passengers, and investing in station facilities.

The new ICWC franchise will begin operation on Sunday 1 April 2012. The franchise is proposed to last for a term of at least 14 years, aligned to the possible introduction of services on High Speed 2. Provisions will be included in the contract to allow for an earlier termination in the event of persistent under-performance by the operator.

The consultation document highlights the key requirements that the Department is considering including within the invitation to tender (ITT), for example, proposals to provide operators more flexibility and encourage investment. Responses to the consultation will inform the development of the ITT which we expect to publish in summer 2011, with the franchise awarded in late 2011.

Over the coming weeks the Department will carry out extensive discussions with local stakeholders, via a series of meetings.

The consultation will run until the 21 April 2011. Copies of the consultation document have been placed in the House Library and are available on the Department for Transport website.

A notice was placed in the Official Journal of the European Union (OJEU) last week in relation to the Greater Anglia franchise and a formal accreditation process for bidders has begun. This will be a short-term contract lasting from February 2012 to at least the summer of 2013.

Letting this contract will enable us to include appropriate recommendations from the rail value for money study being led by Sir Roy McNulty in a new long-term franchise starting in 2013.

We will not be conducting a public consultation on this contract as the services that are being offered will be largely the same as those in operation today. However, there will be a full public consultation on the long term franchise before it is let.

Severe Weather (North Lincolnshire Rail Network)

Theresa Villiers Excerpts

Tuesday 21st December 2010 Westminster Hall

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

It is a pleasure to serve under your chairmanship, Mr Gray, even if this is a rather melancholy subject for debate this morning. I congratulate my hon. Friend the Member for Cleethorpes (Martin Vickers) on securing the debate. He shows his dedication by ensuring that his constituents’ concerns are raised right up until the last moment that Parliament is sitting before the Christmas recess. No sloping off home early for my hon. Friend, who made a powerful speech on the severe problems on the railways in northern Lincolnshire, which occurred as a result of the extreme weather conditions at the end of November and during the first days of December, including a distressing incident reported in his local papers.

I will attempt to answer as many of my hon. Friend’s questions as possible, but he will appreciate that these are primarily operational matters for Network Rail. I have been able to get some answers out of Network Rail in advance of the debate, but I will have to come back to him on some of the matters that he has raised, which are new and specific, having gone back to Network Rail.

I am concerned that my hon. Friend has not yet had a response from Network Rail to his own representations. I hope that it will remedy that in the near future.

Looking at the general picture, there can be no doubt that the severity of both the current weather episode and the one on which my hon. Friend primarily focused is highly unusual and outside the normal expected pattern for UK winters. The volume of snow and the extreme cold mean that these incidents are out of line with weather patterns that we have come to expect in UK winters over recent years. Much of northern Europe has been affected in a similar way to the UK. Even countries that are more used to dealing with extreme cold have experienced major disruption.

In Switzerland, for example, the same band of weather caused severe problems to the road and rail networks, and the international airport at Geneva was shut for 36 hours. Similar events occurred in parts of Germany and Scandinavia.

Although various parts of the UK experienced some significant disruption to transport networks, my hon. Friend is right to say that rail services in his constituency were particularly badly hit by the problems that occurred at the beginning of this month. I understand and share his concerns about the impact that this crisis had on his constituents, and on businesses and the economy in his constituency.

For the sake of passengers and our economic prosperity, we need to ensure that transport operators and the Government work as hard as they can to secure the best service that is practicable and deliverable in difficult circumstances caused by extreme weather.

In October, before the onslaught of the winter weather, an independent review was published, as my hon. Friend said, on resilience of transport services in winter conditions. The review, led by David Quarmby, set out a series of recommendations that the Government and transport operators agreed to act on. The review emphasised the importance of smoother introduction of emergency railway timetables. It also highlighted the fact that contacts between local authorities and the rail industry should be improved with regard to road access to stations.

As the bad weather set in, my right hon. Friend the Secretary of State asked David Quarmby to conduct an urgent audit of transport operators’ performance in England and their compliance with his earlier recommendations. The audit, which was published this morning, emphasises the importance of improving the information given to passengers in the event of disruption. For example, David Quarmby concluded that the rail industry is over-dependent on electronic provision of information. He feels that such systems do not, on their own, provide passengers with sufficient advice and help, nor can they properly demonstrate to passengers that those running transport systems really care about their plight when serious problems occur. We intend to work closely with train operators and Network Rail to respond to the recommendations made in the audit.

I would like to look in a little more detail at how events unrolled in north Lincolnshire at the beginning of the month. During the week of 28 November, cumulative snowfalls of up to 2 or 3 feet over several days were experienced across much of north Lincolnshire and north-eastern England. That initially resulted in delays and cancellation of train services in my hon. Friend’s constituency, and then the closure of several rail routes, as we have heard.

Passenger and freight services were unable to operate for several days in the Grimsby and Cleethorpes area. North Lincolnshire is served by three passenger operators—East Midlands Trains, Northern Rail, and TransPennine Express—all of which were badly affected by the snow. Northern Rail services on the Barton-on-Humber branch were suspended from 1 to 11 December. East Midlands services between Lincoln, Cleethorpes and Grimsby were suspended between 1 and 8 December. The TransPennine Express route from Manchester to Cleethorpes was completely shut on 1 and 2 December, and from 3 to 7 December it operated only between Manchester and Sheffield. Three of TransPennine’s diesel units were stranded in their maintenance depots at Cleethorpes, which meant that, until the route and depot tracks were cleared of snow, TPE had insufficient resources to serve the Cleethorpes to Manchester route, with negative consequences for passengers across the Pennines.

My hon. Friend specifically raised concerns about the resilience of Brocklesby junction. This has been identified as an issue to be addressed and was flagged up as a concern before the period of severe weather. I understand that this important junction will be renewed at the next practicable opportunity. However, that is expected to be Christmas 2011, because a period of closure is obviously necessary to enable those works to be carried out. The works will include replacing the junction with modern track and fitting point heaters to the remaining unheated points, increasing the resilience of the junction.

I am advised that, throughout the period of disruption, the affected train operators remained closely in touch with Network Rail, working to clear routes as quickly as possible. However, their efforts were hampered by further falls of snow, freezing temperatures and reduced staff levels as their staff struggled to get to work on the disrupted road network.

Network Rail has access to a fleet of purpose-built, heavy-duty snow ploughs, together with a fleet of railway engines fitted with smaller ploughs. To respond to my hon. Friend’s questions, a number of locomotives fitted with snow ploughs were operating in the Lincolnshire area. However, in some places the snow was deeper than the snow ploughs were capable of clearing. Network Rail has a limited number of heavy-duty Beilhack snow ploughs, one of which was brought to the area on 3 December. It commenced snow clearance, but unfortunately became derailed that same evening because compacted ice had accumulated in the rail tracks at Garden Street level crossing due to council snow-clearing operations. The plough was put back on the rails, but from that point all level crossings unfortunately had to be cleared by hand.

I am afraid that I do not know the answer to my hon. Friend’s question about the offers from freight companies, but I will seek to find it out from Network Rail and will let him know.

The problems faced by those trying to get the railways operating again were compounded by the fact that many roads in the area were impassable during the period. That made it difficult to get teams of engineers and workers to the places they needed to be to clear snow and repair damaged infrastructure. I am told that, despite repeated requests, bus and coach operators were not willing to provide replacement bus services in such difficult conditions.

[Martin Vickers]

I acknowledge the obvious difficulties that bus operators faced at that time, but many out-of-town buses were operating. For example, the one from Cleethorpes and Grimsby to Hull, via the bridge, was operating. Clearly, there was adequate access, particularly to the A180/M180.

[Mrs Villiers]

My hon. Friend makes a strong point. One of the lessons that we need to take away from this episode of severe weather is that we need to ask the train companies whether they are being rigorous enough in their efforts to provide rail replacement buses.

Another point to highlight is that some of the consequences of a severe freeze can be felt after the thaw sets in. Ice and snow in the quantities experienced at the beginning of December can damage rolling stock and electrical equipment, which can require time and resources to repair. That can heavily affect train availability for some time after a weather event. It can therefore be prudent in some situations temporarily to suspend a service to avoid ongoing problems with reliability after lines reopen.

With heavy snowfall in the north-east of England, south Yorkshire, Durham, Derbyshire, Humberside and Lincolnshire, the rail industry was stretched to its limit during this period of bad weather. In such situations, I am afraid, Network Rail and the train operators have some difficult decisions to make on the deployment of those limited resources.

In deciding which routes are reopened first, priority is generally given to the busiest and most strategically important. Network Rail’s decisions on prioritisation are made by implementing key route strategies, which are designed in advance of adverse weather. I certainly hope that my hon. Friend’s representations to Network Rail will be taken on board as it looks at and revises its key route strategies.

The aim of such strategies is to focus limited resources where they can produce the maximum benefit for the national economy and for overall transport imperatives. My hon. Friend acknowledged the importance of keeping vital freight routes open so that our power stations can generate the electricity we need to keep our homes warm as the winter bites. That requires a constant flow of fuel and other resources. As he has told us, the port of Immingham is crucial, and Network Rail placed a priority on keeping freight flows—particularly power station coal trains—moving through the snow.

To do that, some rail junctions, including Brocklesby, were set for a specific route and then not moved for several days. That helps to protect the integrity of the rail network and it can keep critical freight flows moving. Unfortunately, there is no getting away from the fact that one consequence of the decisions needed to protect freight supplies was that lesser used, conflicting routes were subject to longer closure periods. Unfortunately, that included the Grimsby and Cleethorpes routes.

It is a grave concern that severe weather can leave passengers without rail services for such a prolonged period, as my hon. Friend highlighted. I can assure him that the Government will keep up the pressure on the rail industry to ensure that all practical and reasonable steps are taken to ensure that lines remain open where possible and that services continue. To achieve that, it is vital for us to work closely with the industry to plan effectively for and cope with winter weather conditions on the railways.

Throughout the crisis, officials in the Department were in constant contact with Network Rail and the train operators—before, during and after the severe weather episode. The Secretary of State has written to all train operating companies about winter preparedness. Meetings and conference calls have been held between Ministers and the industry to assess the response and progress towards restoration of normal services. That close co-operation continues during the current harsh weather conditions.

We are on course for the coldest winter since 1910. Extreme weather events will always cause disruption to the transport system, no matter how well prepared we are. However, we have now had three successive years in which the winter has contained exceptionally harsh periods. The question we need to ask now is whether that indicates that there is a long-running trend that we can expect to become the norm for this country’s climate. If so, we need to reassess our approach and the resources we devote to winter preparedness. That is why my right hon. Friend the Secretary of State has asked the Government’s chief scientific adviser, Sir John Beddington, to assess whether the past three years indicate a long-term change in our climate.

I reassure my hon. Friend, however, that I and my officials at the Department for Transport will continue to work hard with the rail industry to try to minimise future disruptions to train services in north Lincolnshire, and indeed across the network as a whole. We are obviously gravely concerned about the disruption that we witnessed during the episode referred to in the debate and the disruption on the east coast main line today.

It is also important to acknowledge railway workers, including those in my hon. Friend’s constituency, and congratulate them on their hard work and dedication during the recent severe weather. Track workers and other staff have had to struggle on through horrendous conditions to keep as much of the network running as possible. I gather that, in a number of cases, staff slept at their work location for up to three days to ensure that they were able to do their next shift. I am sure the whole House will join me in paying tribute to the efforts made by transport professionals across the nation to try to keep the country moving despite one of the toughest winters for 100 years.