Civil Aviation Bill

Theresa Villiers Excerpts

Wednesday 25th April 2012 Commons Chamber

[Pat Glass (North West Durham) (Lab)]

I say at the outset that overall, this is a good Bill. It was drafted by the previous Government and taken forward by the current one, and I agree with much that is in it, but I still have some concerns about a number of issues, one of which is passenger welfare. I was a member of the Public Bill Committee and I raised the issue, but I did not receive sufficient assurances from the Minister that the Government were taking it seriously enough in the Bill.

The Minister was unable to satisfy me on three key issues: first, whether airports will be required to take seriously enough the issue of passenger welfare when things go wrong; secondly, how the Government will routinely measure passenger satisfaction; and thirdly, how, having measured passenger satisfaction, they will make systemic changes to improve passengers’ experiences.

The Transport Committee has recommended that the Government structure licences specifically to address key passenger satisfaction issues, including those relating to immigration and baggage handling. We are all familiar with the frustration, anger and stress that can be caused at airports when our luggage is lost or sent to a different airport, or when we are close to missing a flight because of a long queue at security. I was able to relate to the Public Bill Committee an occasion when I was held in a long queue at security. As the flight time got closer and closer, the anxiety that that caused me was made much worse because I was travelling alone. In the current economic situation, many families are having to prioritise what they can afford and consider whether their finances will stretch to an annual holiday. When they have saved hard all year for a well-earned break, they deserve better treatment and a better experience at our airports.

The Government have cut 6,500 staff from the UK Border Agency, with 1,500 going from the UK Border Force, including more than 800 this year alone. We have heard the concerns that have been raised about the relaxation of security checks at our borders to avoid chaos at security. The chaos at the UKBA last summer meant the abandonment of checks on potentially hundreds of thousands of people, and we—least of all the Home Secretary—still do not know who came in through our borders. The relaxation of controls was a direct consequence of the reduction in the number of staff, and although that is primarily the Home Secretary’s responsibility, it has a significant negative impact on the passenger experience. The public rightly expect proper immigration controls to be in place, and passengers expect there to be sufficient staff to prevent massive delays at airports.

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

I am, of course, very interested in matters related to the UKBF, but if the Opposition are so concerned about the issue, I am puzzled that they did not table an amendment on it.

[Pat Glass]

We did table amendments on the issue in Committee and considered it in some detail, and I was not happy with the responses that I received. That is why I am raising it again.

[Mrs Villiers]

If the hon. Lady was so unhappy with the response given in Committee, I am surprised that an amendment has not been tabled for consideration today.

[Pat Glass]

The proposal is part of this group of amendments. The Minister can say what she likes, but the passenger experience at our airports, which involves standing for hours in long queues because of cuts in UKBA staff, is simply not good enough.

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[Julie Hilling]

I thank the hon. Gentleman for his clarification. I absolutely agree that all airports should be doing it, but the Bill enables us at least to put the obligation on some; we would then hope that the others would follow. If airports want to attract business from passengers and other businesses, their standards need to be as high as those of the others. It is important, therefore, that we set down what we expect from our airports and airlines.

As we heard, the Transport Select Committee undertook the inquiry “Keeping the UK moving: The impact on transport of the winter weather in December 2010”—a very long title. That in-depth report looked into all elements of transport—not only aviation but the road network and how transport links together—and recommended that passenger welfare should be at the heart of airport operations. It also agreed with the recommendation of the Begg report that Heathrow and other airports should develop welfare plans for passengers during disruption. The report stated:

“Passenger welfare should be at the heart of airport operations. We concur with the recommendation of the Begg report that Heathrow should develop a welfare plan for passengers during periods of disruption: other airports should do the same. It is unacceptable that such plans do not already exist. If airlines fail to meet their obligations to accommodate stranded passengers, airports should be prepared to step into the breach. We would support measures by which airport operators could reclaim the costs of providing support to stranded passengers from airlines which had not discharged their legal responsibilities and we recommend that the CAA investigate how this can be achieved.”

The Government responded:

“However, the legal responsibility to provide care and assistance to passengers remains that of airlines. It is important that any initiatives to bolster the provision of passenger welfare during periods of disruption, for instance through passenger welfare plans, do not create any uncertainty in this area.”

The Committee welcomed the Bill, about which the Government response said:

“The CAA would have a new primary duty that would put the interests of passengers unambiguously at the heart of the regulatory regime.”

It is disappointing, then, that on Report we are still urging the Government to put in the Bill the obligation for airports to develop welfare plans.

[Mrs Villiers]

I hope that I can reassure the hon. Lady. Our concern is not about the amendments’ content but that we can trust the CAA to put these kinds of issues in the licence system. The best way to ensure effective regulation is to give the regulator the decision on exactly how to focus on passenger welfare. The hon. Lady can be confident that even if the amendments fall today, the CAA will ultimately put exactly this sort of thing in the licences, on which it will consult as soon as the Bill becomes law.

[Julie Hilling]

I thank the Minister for her intervention, but I have to say that I am not reassured, because if we believe that those things are fundamental, I do not see why we should not put them in the Bill. She reassures us that the regulator will ensure that those things are in place, but let us tell the regulator. Let us say, unambiguously and up front, that we expect those things to happen and that the regulator will ensure that, rather than allowing the regulator to make those decisions for itself.

I want to talk, as others have, about what happened at Heathrow in the winter disruption of 2010. The point is worth reiterating, because the Begg report made alarming reading. Let us look only at the headlines: 9,500 people sleeping in the terminal; passengers seeking refuge in subways; a lorry carrying blankets for passengers having to turn back on the M25 because of the traffic conditions; very few passengers provided with water and refreshments; absolute chaos and confusion. As the Begg report found:

“Confused and contradictory messages caused incorrect signals to go to airlines, to passengers, and from airlines to passengers”.

Passengers were given laptops to try to rebook their flights—the laptops were around the terminal. That is fine for regular travellers and regular internet users—perhaps they could find their way around the system—but many passengers would clearly not have had the first clue about what to do. There seems to have been an absolute lack of care and concern for passengers at that point. Indeed, there was no contingency plan in place to ensure that those with medical conditions, who are more vulnerable—for instance, those with diabetes—had access to food, water and other things they needed. There must be a system in place and a channel of support for those who need medical support at times of disruption.

It is true that we all get those messages on the television or radio: “Do not travel unless your journey is absolutely essential.” Unfortunately, the vast majority of us always believe that our journey is indeed absolutely essential. People set out in their cars or other modes of transport when, if they had stopped to think about it, they would not have done so. Airports face that difficulty in dealing with us—that even when it is snowing or there is thick fog, we believe that our flight is going to take off. Airports have to accommodate themselves to the fact that we are not always sensible. Living in a country that does not often have severe weather, we are perhaps more naive about when we should travel and when we should not. However, we also have to recognise that many of those travelling to airports set out the day before or when it is not apparent that there will be bad weather later. Again, we have to consider not only human nature, but the fact that people will set out before conditions worsen. That is particularly true when we think about volcanoes erupting and other things that can happen unexpectedly.

Going back to the winter problems, particularly at Heathrow—I acknowledge that other airports dealt much better with the weather—it is unacceptable for passengers to have such an experience. It unacceptable not only for them, but for UK plc. Our airports are our gateway to the rest of the world. We need airports with first-world standards, not standards one would expect in a developing country.

There did not seem to be a huge amount of improvement at Heathrow this year. Perhaps I could be criticised for saying that not enough information was given on previous occasions, but when there was a threat of snow, a quarter of the flights were cancelled. The report states that flights should be cancelled and information given in advance if such disruption is feared. Perhaps the Minister has better information than I do and will be able to respond, but four inches of snow were threatened—the threat was of snow being dumped, rather than falling long term, over days or hours. Considering that we are supposed to have had this great investment in snow clearing and other things to keep our airports moving, cancelling a quarter of the flights feels like a knee-jerk reaction.

Yes, airlines are responsible for the treatment of passengers, but it is not good enough for different airports to have separate passenger welfare plans. A passenger needs to know what support they will get at any airport, because it is the airport, not the airline, that will be blamed if there are problems. Whether a passenger has booked with Virgin, British Airways or whoever, they will blame Heathrow, Manchester or Gatwick for their bad experience and lack of support, rather than the airline that should be providing that support. Airports clearly need the power and responsibility to have concerted passenger welfare plans, and the CAA needs the authority to ensure that that happens.

[Mrs Villiers]

It is a pleasure to see you in the Chair this afternoon, Mr Deputy Speaker. I would like to echo the comments of the shadow Minister for aviation to the effect that our experience in the Chamber today shows something of a contrast. It shows the great strengths of this Parliament—that we can embrace both the aggressive exchanges that we heard earlier and the detailed and considered scrutiny of legislation that we are undertaking now.

I also very much welcome the words of support that the shadow Minister has expressed—both today and throughout the scrutiny of the Bill—for the broad thrust of the framework put before the House. This is a Bill that started its life under the previous Administration, so although it is being put forward by a coalition consisting of Conservatives and Lib Dems, it owes much to our Labour predecessors. That degree of cross-party involvement has strengthened the Bill, as have the extensive consultation done by the previous Government and the further work with stakeholders done by the current Government.

Before I deal with the amendments in detail, I want to make a general point about the passenger experience. I completely agree that a key aim of the Bill is to ensure that we improve the passenger experience at our regulated airports, because it is important both for passengers and for our economic competitiveness, the quality of our airports and making passengers the central priority of our regulated airports. That is essential. Although Opposition Members have expressed concern and called for changes in the Bill to reflect that, I hope they will agree that what is already in the Bill will be a significant overall improvement on the current system, which essentially leaves the CAA with few levers at its disposal in the five-yearly price control process. That process is important, but the Bill enables the regulator to opt for real-time regulation, so that it can intervene when passengers need it, in a flexible and targeted way, to address just the sort of issues that so many hon. Members have raised today. Although we may differ on the precise drafting of the Bill on some issues, I hope that we can uniformly agree that it will be a significant step towards achieving a better experience for passengers at our airports.

Let me deal first with the amendments; I will come to the new clause in a moment. There can be no doubt about the importance of these issues, whether it is baggage handling or the protection and safeguarding of passengers in the event of disruption. I have huge sympathy with all the passengers who were subjected to hassle and inconvenience during the various incidents outlined by hon. Members today. It is clear that the aviation sector as a whole needs effective means to deal with passenger welfare during such incidents. The hon. Member for Blackley and Broughton (Graham Stringer) gave us a timely reminder that this is not just a matter for airports, but that airlines have a number of important and legally binding duties in respect of passenger welfare. However, it is clear that airports have an important role to play as well.

Although I can understand and agree with the sentiment behind much of what has been said today and the general aims of the amendments, I cannot recommend accepting them. The Bill provides a far more effective means of protecting passengers in relation to the matters raised. Clause 18 and the licensing regime will give the CAA the flexibility to tailor licence conditions to the specific circumstances facing individual airports. That flexibility is important as a means of minimising distortions associated with regulatory intervention and ensuring that the action taken by the CAA is proportionate and tailored to individual circumstances. As I said in response to the hon. Member for Bolton West (Julie Hilling), giving the independent expert regulator flexibility and discretion in deciding the content of the licence is a more effective way to protect the interests of both present and future passengers. If Parliament chooses to use the legislation to hard-code certain points into licences, that would constrain the regulator’s freedom to decide what priority should be afforded to different passenger concerns and what costs should be allowed for the delivery of competing consumer priorities.

The amendments would make the licence system unbalanced because there is a wide range of different issues that passengers care about. Moreover, a prescriptive approach in the Bill is likely to make it more difficult for the regulator to adapt its approach to the changing concerns of passengers. If we adopted the amendments we would risk obliging the Civil Aviation Authority to give greater weight to the factors listed in the amendments than to matters that might become equally or, indeed, more important to passengers in future.

I hope that I can provide some reassurance to hon. Members on the matters that they have raised. They can be confident that the CAA would use the new licensing powers proposed under the Bill to address the issues that they have raised in the amendments. As we discussed in Committee, in response to a request for advice from the Secretary of State, the CAA has published an indicative licence to assist Parliament in its scrutiny of the Bill. A copy was sent to the Library and, at the request of the Department for Transport, the draft licence includes provisions on operational resilience which, I agree, are crucial for an airport to be effective.

The proposals in condition 7 would require the licence holder to operate the airport efficiently and to use its best endeavours to minimise any detriment to passengers arising from disruption. It would also require the airport to draw up, consult on and gain the CAA’s approval for an annual resilience plan setting out how it would secure compliance with its obligations under the condition. The licence holder would then be obliged to comply with commitments it made in its resilience plan. I hope that reassures hon. Members, including the hon. Member for Bolton West (Julie Hilling).

[Gavin Shuker (Luton South) (Lab/Co-op)]

Will the Minister confirm that if the amendments are not accepted, the current insufficient resilience safeguards might be something dealt with in a licence issued by the CAA?

[Mrs Villiers]

If I understand the hon. Gentleman correctly, yes, it is clear that the Bill provides the CAA with flexibility to include provisions in the licence on baggage handling and passenger welfare. Our rejection of the amendments should not be taken as an indication that matters are not sufficient; it is simply that the Bill already provides the tools for the CAA to deal with those them.

[Gavin Shuker]

I am extremely grateful to the Minister for giving way again. She it talking about the provisions positively. Is it her view that the CAA should issue licences with provisions on those particular points?

[Mrs Villiers]

As I believe I said, the previous Secretary of State had already indicated to the CAA that resilience and passenger welfare were issues that should be addressed in the licence.

[Nigel Mills]

Something that is missing from the indicative licence is a requirement to measure or try to improve people’s experience at border control, although that is understandable, given that it is not within the remit of the CAA to deal with that. Has the Minister had any discussions with the Home Office, given the recent problems at Heathrow and elsewhere, to see whether more data can be published to try to improve that experience?

[Mrs Villiers]

I am very much aware of my hon. Friend’s interest in the UK Border Force, and I shall come on to those matters. However, on various occasions, I have had discussions with Home Office colleagues on those matters.

[Mrs Ellman]

On the same topic, how will passport control matters, which are the responsibility of the Home Office, be addressed under the licensing regime?

[Mrs Villiers]

As I shall come on to explain, I do not believe that the licensing regime is an appropriate mechanism to address issues relating to border controls.

The CAA sought initial views from industry in drafting the indicative licence. However, Parliament has not yet concluded its consideration of the Bill, so the CAA has not yet begun to consult on proposed licence conditions for each airport that will be subject to regulation. Until consultations have taken place no final decisions will be taken about what goes into the licence. However, if the Bill is passed as drafted the CAA will consider the extent to which it is necessary to include conditions on resilience and passenger welfare in the licence. The CAA expects activities that may be part of the new licence regime to include taking into account other obligations on service quality standards, and the success of codes of conduct and voluntary arrangements adopted by the industry. As the body with the relevant operational expertise, the CAA is well placed to determine appropriate and effective licence conditions. The amendments could undermine our goal of giving the specialist regulator a flexible toolkit to protect the passenger, so I hope that the Opposition will not press them to a vote.

[Graham Stringer]

I am grateful to the Minister for giving way. As ever, she is generous with her time in answering questions. My question is slightly rhetorical. Does she accept it is much more difficult for such airports as Heathrow, which operates at 99% capacity, to be resilient?

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[Mrs Villiers]

Whether in our rail system or at our airports, there is a trade-off between capacity and resilience. If a system is intensively used, it is often more difficult to maintain appropriate reliability, but I pay tribute to the work done at Heathrow in recent years to improve reliability. In my opinion, its record stands up strongly in comparison with that of its European competitors.

On new clause 2, the Government of course agree that it is hugely important that airlines and airports should be sensitive to the needs of disabled people, and that they comply with the regulation that has been introduced to protect the interests of people with disabilities. I agree about the benefits of publishing information on compliance with obligations relating to disabled passengers. However, I do not support the new clause.

My first concern is a practical one, as the provision is so drafted that it would put the obligation to produce an annual report on the Secretary of State and the CAA jointly. I have significant doubts about linking the CAA and the Secretary of State in that way. The aviation regulator and the national enforcement body for European aviation consumer legislation are separate from the Secretary of State in respect of ensuring compliance with EU law, and the amendment could be seen to compromise the CAA’s independence in that role. I am concerned, too, about the impact of the provision, and I believe that there are effective mechanisms already in place to secure the result that it is intended to achieve.

The CAA publishes an annual report and corporate plan, and it makes a considerable amount of consumer information available on its website. An extra annual report on a specific area of legislation, on top of those more wide-ranging reports, seems disproportionate. The CAA is committed to the principles of better regulation, and it aims to be as transparent as possible in all its work, including in relation to compliance and the enforcement of legislation relating to consumers and disabled passengers.

[Jim Shannon]

Further to that point, and to what I said earlier, I am aware of many people, particularly people with disabilities, who are subject to a strip search every time they go to the airport. Is it necessary to go to that extreme every time someone who clearly has a disability appears at the airport?

[Mrs Villiers]

The airports have an important obligation to ensure that all security checks are carried out appropriately, but it is enormously important that they do so as sensitively as possible, particularly in relation to the needs of disabled passengers. I have a great deal of sympathy with the point made by the hon. Gentleman.

The CAA continues to develop capacity to help consumers, and is at an advanced stage of setting up a new consumer advisory panel to act as a critical friend of the regulator as it proceeds to put the consumer at the heart of its regulatory effort. I hope that those provisions give the hon. Member for Liverpool, Riverside (Mrs Ellman) the reassurance that she seeks. The new consumer panel, which will replace the Air Transport Users Council, is a step in the right direction. It will provide the CAA with an important insight into how it can best serve the consumer’s interest. It will have internal independence from the CAA, which will enable it to provide an effective challenge. It will have the scope to make public statements and it will publish an annual report.

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[John Woodcock]

As ever, my hon. Friend has made an excellent point, and the amendment presents an opportunity for such leadership to be shown.

[Mrs Villiers]

Perhaps I can illustrate that by reminding the House that as soon as the problem began to emerge, when the new EU rules were introduced, the former Secretary of State for Transport instructed airports to stop applying the EU rules and revert to the old rules until a trial was developed. He took decisive political leadership then, and we will continue to adopt that approach.

[John Woodcock]

The Minister is right to point out that action has been taken in this regard. The point that we are making today, with which I hope she will agree, is that some airports are still not applying sensitivity as we would wish them to do. That remains an issue, but we now have an opportunity to do something about it.

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[Gavin Shuker]

The hon. Gentleman goes to the heart of the issue. I agree with him completely that the regime that comes in must be as good as, if not better than, the one it replaces. That is why amendment 13 would require the Secretary of State to carry out a full assessment of the change. I hope that there will be support for that if it is pressed later.

The hon. Gentleman’s second point was that change is important. Change is essential in aviation security and in all aspects of security so that we do not get into the pattern of doing the same thing day after day and thereby miss the threats. This country has an advanced aviation security regime. There is good partnership between airports, the Department for Transport and the agency within the DFT to ensure that it is implemented. When I sat on the Transport Committee, I was pleased to accompany its Chair, who spoke earlier in this debate, to speak to the officials who are charged with our aviation security in the run-up to the passage of the legislation. It is clear that we have major expertise in this, which we can share across Europe.

The key issue is not whether the Bill will strengthen or weaken our aviation security, nor what operational procedures or equipment we should use, but the question raised by the hon. Member for Beckenham (Bob Stewart): will the regime be better? At this stage, I do not have the information that is needed to answer that question. More important, I fear that the House has not had an opportunity to explore and answer that question fully. The new clause seeks to bring about such an opportunity, which is extremely welcome.

When we consider what the role of the Government should be, we see that the public expect there to be a hierarchy of interventions. There are places where they do not want government at all, and there are places where it is very much required. Security and the protection of the people are at the top of that hierarchy. Although the change being made in the Bill is not in any way designed to push the matter off the Secretary of State’s desk, it is a change to a system that has by and large worked very well.

The change is very big, however, and as I said in an intervention, it comes in the context of changes that are happening around Europe. I visited Brussels two weeks ago to talk about a number of subjects, and the extent to which the UK has become a tarnished brand was clear. Ever since the Conservative party moved to a more right-wing grouping within Europe, and more recently because of the veto that the Prime Minister exercised—although many of us would question what it actually stopped—our Government’s ability to influence other national Governments’ policies on various matters that we should agree on as a bloc has been diminished.

[Mrs Villiers]

I think the hon. Gentleman would be interested to know that the last time I attended the Council of Ministers, the Danish presidency proactively raised the issue of security reform, drawing on a number of the principles that we were considering in the UK. There is already interest in Europe in what we are doing, and we as a country can take a leading role in the debate on how to deliver a much more effective and passenger-friendly security regime.

[Gavin Shuker]

I absolutely agree that we have great expertise to share across Europe, and I am pleased to hear that the Minister has been making that point in Brussels. If she were being charitable, though, I think she would accept that the atmosphere there has changed.

[Mrs Villiers]

indicated dissent.

[Gavin Shuker]

No, she is not going to be charitable. Okay.

The Minister rightly gave the example of the ministerial team at the Department for Transport having acted in response to concerns about European guidance on security related to the Sikh community. The current system allowed her to take that action, but we are about to change that system.

[Mrs Villiers]

I can reassure the hon. Gentleman that the move to an outcomes-focused, risk-based system will not change the responsibilities in relation to directions such as that given by the former Secretary of State, my right hon. Friend the Member for Runnymede and Weybridge (Mr Hammond). Under the new system, the Secretary of State will still have the power to make directions such as he did in relation to the problem of religious headgear.

[Gavin Shuker]

I am extremely grateful to the Minister for giving me that assurance, but I would like her to give it to the House in a full debate about aviation security. By 7 o’clock tonight, the House will have finished Report stage. My party’s Front Benchers made their arguments so forcefully that I am sure they will carry the day if the amendments are pressed, but if not, we will have to go on assurances from the Government, not on assessments such as those we call for in the amendments or on positive resolutions of both Houses such as could be made if new clause 3 were accepted.

I accept the Minister’s point about leadership and am pleased that she is being responsive on the matter, but we must not ignore the fact that a big change is being made to aviation security. The public will want us to be able to account for what we have done. The change should not be made lightly; it should be made with the full, cross-party support of the House.

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[Mrs Villiers]

Government amendments 17 and 18 have not had much attention so far, which is probably a good thing for Government amendments. They are minor and technical, and provide for a change to section 12(3) of the Aviation Security Act 1982 by substituting the words “that Authority” with “the CAA”, thereby removing any doubt that the CAA is the authority referred to.

Amendment 11 to clause 80 deals with religious headwear. Committee members will recall that I raised this matter to illustrate some of the points we were discussing. I am sure the House will agree on the importance of ensuring that passengers are treated with respect at all points during their journey through an airport and that our system of security checks is operated in a culturally sensitive way. I welcome the work of colleagues such as my hon. Friend the Member for Wolverhampton South West (Paul Uppal) and the right hon. Member for Wolverhampton South East (Mr McFadden) on this important issue.

Each passenger departing from a UK airport undergoes a standard security process, irrespective of their age, gender or ethnic background. The problems highlighted today relating to religious headwear emerged in April 2010, when new EU regulations came in that required a physical hand search to be carried out in relation to turbans. As hon. Members, including the hon. Member for Feltham and Heston (Seema Malhotra) and the right hon. Member for Wolverhampton South East, have mentioned, physical contact with the turban causes considerable distress and offence to Sikhs. That was a concern not only for passengers but for many members of staff, as Heathrow is lucky enough to draw many members of staff from the Sikh community.

The former Secretary of State for Transport, my right hon. Friend the Member for Runnymede and Weybridge (Mr Hammond), acted swiftly and instructed airports to suspend temporarily the application of the new EU rules. As I mentioned in response to the hon. Member for Luton South (Gavin Shuker), the ability to take such a decision will remain in place under the new approach, because the Secretary of State will retain responsibility for policy and directions.

Airports were instructed to revert to the old systems while consideration was given to how to resolve the concerns expressed by the Sikh community. After intensive work over a short period, a trial was put together with the assistance of members of the Sikh community and is now under way at almost all the UK’s major airports. It uses a combination of explosive trace detection and hand-held metal detectors as an alternative to a hand search of the turban. This technology is successfully deployed in the United States as part of their aviation security regime. The trial is going well and is being carefully evaluated, and we are keeping the European Commission up to date with the results.

I have also written to European aviation and security Ministers to highlight the importance of the issue and to draw their attention to the trial, conscious of the sort of points made today about the UK’s responsibility as a country with a significant Sikh community. We very much hope that the trial will provide a sound basis of evidence for the EU in deciding whether it is possible to change the European rules on security to meet the concerns of Sikhs and ensure that the rules operate in a culturally sensitive way. The trial runs for 18 months up until this summer, and we are currently engaging with the EU with a view to continuing to conduct searches in this way.

[Mr McFadden]

I am grateful to the Minister for updating the House on the progress of the trial. Has she received any indication from the European Commission about its willingness to adopt this approach more widely, if the UK Government conclude that it does not compromise airport security?

[Mrs Villiers]

As I recall, it featured in my discussions with Siim Kallas last time I was at the Council of Ministers. We get the impression that the Commission is interested and has an open mind, and, in respect of the immediate prospects, we will consider whether we need to start a further trial when the current one expires in July. We are considering various ways of solving the problem, because it is important that we find a solution that works for the community.

[Mr Spellar]

Given that the trial must have been running for about 12 months, will the Minister tell us whether it has been a success? Most of the evidence will have come in the first month.

[Mrs Villiers]

As I have said, we believe that the trial has been positive so far, but it would not be appropriate for me to pre-judge the results before they have been properly assessed.

By way of further reassurance on this issue, clause 80 secures the same outcome as amendment 11, by inserting a new section 21I into the Aviation Security Act 1982, which will require the CAA to provide aviation security advice to airports, airlines and other groups. That would, if the CAA considers it to be appropriate, include advice on security checks on passengers wearing religious clothing. Therefore, although amendment 11 has provided a valuable opportunity for the House to discuss the matter, the Bill already provides for the outcome that it seeks. The Government will continue to engage with both the Commission and other member states with a view to finding a long-term solution to this important issue.

Let me turn to an outcomes-focused risk-based security regime. I welcome the words of support in principle for that direction of travel which we heard from the hon. Member for Barrow and Furness (John Woodcock). We have put together a joint Department for Transport-CAA team with the relevant skills and knowledge to develop, trial and implement the new regulatory regime. We have consulted stakeholders and hosted several interactive events with industry to explain our position. A range of trials will be carried out applying the new regulatory approach. We are conscious of the importance of retaining staff, if we can, when the posts are transferred from the Department for Transport to the CAA. We are working to ensure that we retain those staff when the posts are transferred.

The hon. Gentleman has made points about secondments in the past. We do not see a major difference being made to the retention of staff when a secondment ends, although we certainly do not rule that out as part of our strategy for retaining expertise. To respond to the points that the shadow Minister made, we agree that we are talking about a significant change to aviation security. To respond to the hon. Member for Blackley and Broughton (Graham Stringer), we believe that this move could reduce costs for industry, but that is certainly not the driving factor. The paramount priority must be to ensure that aviation security remains robust at all times. I believe that moving to a more outcomes-focused and risk-based approach could well enable us to deliver higher standards than apply currently, as we will be giving the airport industry more opportunity to develop innovative ways to deliver security outcomes and apply principles of continuous improvement. We are absolutely certain that we must in no way allow the security standards applied currently to slip. We are confident that that will not happen with an OFRB approach, and we believe that the reforms we are proposing could make passengers in the air even more secure than they are today.

[Bob Stewart]

Training is crucial, and we have to ensure that it is as good as it possibly can be. Speaking as someone who has been involved in such security matters, I can tell my right hon. Friend that the real problem is that people lose focus if they do the job for a long time. Training can help with that. We must ensure that our training is good and that it includes keeping a focus on the job when it can sometimes become repetitive and boring.

[Mrs Villiers]

My hon. Friend makes a good point with which I completely agree. He also made an important point earlier, which is that some variation in the way security is delivered in different airports can assist in maintaining the highest standards of security, because it injects a further element of unpredictability, which can help us frustrate the evil intentions of those who would do us harm.

In addition, we also see an advantage to the aviation industry of moving to a system that it can run more efficiently and, we hope, in a more passenger-friendly way. When we respond to the consultation on such security, we intend to provide as much detail as possible about how the new approach will work. I cannot support the proposal in new clause 3 for the Secretary of State to be obliged to require the approval of each House before such measures could come into force. I fear that that would slow down reform and could jeopardise our ability to respond swiftly to security threats. The Secretary of State intends to take forward the reformed approach to aviation security under powers in part II of the Aviation Security Act 1982.

Part II gives the Secretary of State the power to give directions to industry for the purpose of protecting civil aviation against acts of violence. The Secretary of State's decision-making powers do not require the approval of Parliament before they can come into force. Changing that as proposed by the new clause could damage our ability to keep passengers secure. Directions from the Secretary of State often contain security-sensitive information which, if widely disclosed, could be used by people who mean to do us harm. Obtaining the approval of the House via secondary legislation inevitably takes time, even with the most efficient business managers in charge of Parliament’s agenda. Aviation directions sometimes have to be made quickly to respond to new threats—in some cases, within a matter of hours or days. For example, swift action had to be taken in response to the liquid bomb plot. If it had been necessary to recall Parliament so that the matters could be debated by both Houses it would have been impossible to respond effectively.

The House will also recall the printer bomb plot in October 2010, when it was necessary to place emergency restrictions on air cargo very swiftly. If the Secretary of State had not been able quickly to ban certain consignments, it could have left us exposed to similar attacks. I am sure that the Opposition would not want that, so I hope that they will consider withdrawing the new clause.

[John Woodcock]

In our mind, there is no question at all that emergency provisions such as those introduced after the liquid bomb plot would be subject to parliamentary scrutiny, so I do not understand why the Minister is suggesting otherwise.

[Mrs Villiers]

I am afraid that that is how I interpret the new clause. There would be a serious risk that it would have that result, although I am pleased that the hon. Gentleman has assured the House that that is not the intended outcome. He will appreciate that that would be damaging to our efforts to keep people safe.

[Gavin Shuker]

The new clause states:

“An order under this section must be approved by a resolution of each House of Parliament. ”

There is nothing in the measure, as far as I can see, that would prevent the existing powers of the Secretary of State “to direct” from being taken away. It is more about the transition from one regime to another.

[Mrs Villiers]

That may be the Opposition’s intention, but I am advised that the effect could prevent the Secretary of State from taking swift action on the sort of plots that I have outlined.

Turning to amendment 13, clause 82(3) requires the Secretary of State to consult the CAA before making a transfer scheme. Such a scheme would allow, for example, the transfer of relevant staff. I can assure the House that the Department has begun to work with the CAA on understanding how the transfer of staff and property to the regulator might impact on the delivery of the CAA’s functions, whether it is safety, economic regulation or new security functions. The Government’s priority is to ensure that our aviation security remains robust before, during and after the transfer to the CAA. We have begun work to assess the impact of the transfers, for example, to ensure that the CAA has access to the right information and knowledge on aviation security, and we are looking too at how best to integrate aviation security in the CAA, including synergies between safety and security. The CAA is considering how best to manage security at board level, as well as how it can be most effectively managed at operational level. We remain committed to ensuring that the CAA continues to conduct its regulatory functions to a high standard and that it fulfils its aviation security functions to an equally high standard. I therefore urge my colleagues to oppose the amendments and new clause, because I do not think that they are necessary to deliver the outcomes that they are intended to secure.

--- Later in debate ---

[Graham Stringer]

Amendments 2 and 1—that is the order in which they appear on the selection list—may be considered to be either relatively minor or the most important amendments to the Bill, depending on how they are interpreted.

This is the “minor” aspect. I asked in Committee why the word “effectiveness” was not included in clause 1(3)(c) and clause 2(4)(c), along with the words “economy” and “efficiency”. The Minister’s responses are always very courteous and comprehensive, but on this occasion, unusually, I was not satisfied that there was a good reason for the absence of the word “effectiveness”.

When I was more centrally involved in local government, we regularly spoke to the Audit Commission. It used to refer to the “three E’s”—effectiveness, efficiency and economy—and used to joke that “economy” was usually left out. That is not surprising in view of the dictionary definitions of all three words. “Effectiveness” apparently means

“to accomplish the purpose, producing expected results.”

The meaning of “efficiency” is self-evident:

“performing or functioning in the best possible manner with the least waste of time and effort”.

Those are clear and relatively objective terms. “Economic”, however, is defined as

“pertaining to the production, distribution, and use of income, wealth, and commodities.”

It is a much more general term, and it is the one that the Audit Commission used to say was left out. Why on earth do clauses 1 and 2 not state that the holders of licences should be effective, which is surely very important? Although I consider that to be the relatively minor aspect of the amendments, it goes to the heart of the Bill. As I have said on a number of occasions, although the Bill gives the CAA new responsibilities to look after the interests of consumers, it does not tell us either how that is to be done or what the consumer’s interests are.

The Bill states that the CAA must oversee airports to ensure that there is continuity, and that air transport services have regard to

“the range, availability, cost and quality of airport operation services.”

That in itself is fair enough, but the Bill does not give the CAA the overarching purpose of improving aviation and ensuring that it continues to form a major part of the United Kingdom economy.

Our demand for the inclusion of the word “effectiveness” highlights the strong deficiency in the Bill that we debated in Committee. No real political controversy is involved in changing the nature of the functions of the CAA, whether we are talking about the regulation of air space or the ensuring of economy and safety. That is not a matter of great debate between the parties. There is a great debate between Members and parties, however, about how aviation should develop and whether we should continue to be a leading country in aviation, and about whether our economy, which depends on aviation, should be hindered by not having the aviation facilities we deserve. I could make a very long speech about these matters. I shall not do so, but I do want to make a few important points.

I believe that many Conservative Members, and many members of the Government, want to improve our aviation facilities, including by increasing the capacity of airports in south-east England. Unfortunately, however, they are caught in a situation where the tail is wagging the dog. Indeed, there are two tails. Dogs with two tails are usually known to be particularly happy, but not in this instance. There is the Lib Dem tail, as the Lib Dems have for historical—and, I think, mistaken—reasons always opposed increasing airport capacity in south-east England. The Government tail is also being wagged by Boris Johnson, current Mayor of London, who believes he can win the mayoral election only by opposing the expansion of airports within the London system, and by proposing instead an absurd island airport in far east London—in the Thames estuary, in fact. That may be good for his chances in the mayoral election, but it is extremely bad for the country.

[Mrs Villiers]

I can assure the hon. Gentleman that the Government’s policy on airport capacity is not driven by tails or dogs or anything like that. It is driven by an understanding of the importance of ensuring that aviation has the space to grow, but also that it does so within parameters that address the local impacts of aviation, such as aircraft noise and air quality, which, as I am sure the hon. Gentleman will agree, can be corrosive. We also need aviation to play its part in our efforts to tackle climate change. Our approach is, and always will be, based on a sound and sensible assessment of the evidence on how best to have a growing aviation industry that also plays its part in addressing its environmental impacts.

[Graham Stringer]

The Minister makes a consistent case on that, but she will not be surprised to learn that I do not accept it. The noise around airports is diminishing as planes get quieter, and air quality is regulated by European regulations, with most of the pollution around airports being caused by cars and other road traffic. That needs to be dealt with, but the levels are set by European regulations, and those levels cannot be surpassed.

Those arguing against increasing airport capacity often say that that will help in our commitments to reducing carbon dioxide emissions. As we demonstrated in Committee however, that is not the case, because as a result passengers on intercontinental journeys often have to fly via other countries, so they have to take off twice, which produces extra pollution and extra carbon dioxide.

If the Government carry through their intention to put aviation into the European emissions trading scheme, as with the polluter on the ground, aviation will be dealt with on a Europe-wide basis, so we do not need an extra domestic policy to address the issue. The Government’s current policy is strangling the British economy.

--- Later in debate ---

[Graham Stringer]

I could not agree more. Before the debate, I looked up on the internet how many cities in China have a population of more than 1 million—the size of Birmingham. There are 160 cities that are bigger than or the same size as Birmingham and five cities that are bigger than London, three of which are not very well known. The biggest, Chongqing, has a population of 31.4 million, but how many air routes do we have to Chongqing? There are routes to Shanghai from London but from nowhere else in the UK. The others are Beijing, Guangzhou—or Canton, as most people would know it—and Tianjin. Those cities are all bigger than London and there are very few routes to them. The hon. Member for Strangford (Jim Shannon) mentioned India, Brazil, Russia and China. This country wants to be the centre of the financial world through the City of London and, as Europe gets itself into a mess with deflation, our future must increasingly rely on trading with the growing economies of the world. However, at the same time, we are cutting off our links.

[Mrs Villiers]

I can reassure the hon. Gentleman that he should not necessarily believe all the propaganda he reads on the posters in Westminster tube station. If flights to Hong Kong are taken into account, Heathrow delivers more services to China than any of its continental rivals. London is one of the best connected cities in the world. We have five highly successful airports serving the south-east, six if we count Southend.

[Graham Stringer]

Since the second world war, as the Minister will know, Heathrow has been the largest international airport in the world. Soon it will no longer be that. It is still bigger than Frankfurt as regards its international destinations, but—I do not have the figures in front of me—the number of destinations served by Heathrow has gone from something like 220 to 180. Increasingly, the passenger numbers are going up because larger aeroplanes are going to fewer and fewer destinations.

I wanted to make both that small point about why the word “effective” is not in the first two clauses and the larger point that I would like not only the words to be in the Bill but there to be an effective aviation policy, which the Government do not have. On this issue, although not necessarily on others, the Government’s policies are anti-business and anti-growth. They are damaging the UK economy and they need to change them. Changing the wording of the Bill would help.

--- Later in debate ---

[Mrs Villiers]

I thank my hon. Friend the Member for Rochester and Strood (Mark Reckless) for his kind words and contribution and all Members who have taken part in the debate on this group of amendments. I was grateful that the shadow Minister expressed an interest in amendment 19 and am delighted to talk the House through the Government amendments; like those in the previous group, they are very dull and technical.

Amendment 14 rectifies a drafting omission in clause 63 by specifying that the functions captured by the references to “relevant 1998 Act functions” in clause 63 are the functions specified in clause 62(2). Amendment 15 enables further clarification of how clause 70 will operate. Clause 70 provides that two or more persons are joint operators of an airport where they jointly have overall responsibility for the management of all the area. It is important to be able to identify the operator or joint operators so that there is clarity about who is appropriately subject to regulation.

Concern has also been expressed, for example by British Airways, that the test could draw some companies into the regulatory system in a way that is not intended, for example when an airline is involved in running the terminal from which its flights take off. Amendment 15 provides that the Secretary of State has the same powers to make regulations when two or more persons are to be treated as having overall responsibility for the management of an area, as she already has for sole operators under the Bill. If unforeseen problems emerge, further clarity could be provided by secondary legislation.

On Government amendment 19, the intention of clause 77(5) is to exclude persons carrying out exempt Crown functions from economic regulation under chapters 1 and 3 of the Bill. The Bill already provides that the UK Border Force and the police, who currently carry out exempt functions on behalf of the Crown, are not subject to the prohibition on levying charges in clause 3. Amendment 19 ensures consistency, removing the possibility of the CAA being required, in response to a request under clause 7(2) to make a market power determination in respect of a core airport area operated by a person exercising exempt Crown functions. It also disapplies the requirement under clause 14(4) to treat persons carrying out exempt Crown functions as having applied for a licence if there is a positive market power determination.

After the excitement of Government amendments, I now turn to new clause 4, which relates to the National Audit Office. I fully agree with Opposition Front Benchers and others about the need for the CAA to be efficient in carrying out its functions, but I am afraid that I am not persuaded that the NAO would deliver more effective scrutiny than the current mechanisms by which the CAA’s functions are audited and scrutinised.

Moreover, the CAA is overwhelmingly funded by the aviation industry, whereas the NAO’s role is to scrutinise public spending on Parliament’s behalf, and the income the CAA receives from the industry is not classified as public spending. Parliament recognised that by removing the NAO’s role in 1984. As the shadow Minister acknowledged, the issue was considered by Sir Joseph Pilling in his 2008 review of the CAA. He concluded that there was no need for NAO involvement, and that recommendation was accepted by Ministers under the previous Government, and I have yet to see convincing reasons why they were wrong.

There are other examples of industry-funded regulators that come under the scrutiny of the National Audit Office, as the shadow Minister said, but most either are non-ministerial Government departments or rely on Government funding for a significant amount of their income. Others, such as the Financial Services Authority and the Office of Rail Regulation, are funded by industries that receive or have received significant taxpayer support—distinguishing them, again, from the aviation sector, where such indirect taxpayer support is not present.

To provide reassurance in response to the concerns that have been raised, I shall highlight the strength of the current scrutiny arrangements. The Secretary of State appoints the CAA’s external auditors; she presents the CAA’s accounts to Parliament by placing the annual report statement in the Library; she is involved in the development of the authority’s corporate plan; with the Treasury’s consent she approves the national loans and sets the CAA’s required rate of return on capital; and she will continue to approve the pay of the chairman and the non-executive members of the CAA board. That oversight, combined with the work of the CAA’s independent auditors, gives a strong incentive to secure value for money and offers accountability to Parliament.

I also advise the House that the CAA has implemented the Pilling recommendation on establishing a programme of value-for-money audits. The CAA also consults on its charges and fees, giving stakeholders the opportunity to raise any concerns that they have—they are always robust in making their views known—and the Bill makes such consultation an explicit legal requirement.

There are therefore already effective mechanisms in place to ensure that the CAA acts efficiently. As the shadow Minister said, however, when we considered a similar new clause in Committee, I undertook to reflect on these issues and whether additional reassurance could be given on them. I am therefore today announcing a change to the CAA’s accounting direction, which I hope will provide some further reassurance.

Every year the DFT issues a report direction and an accounts direction to the CAA, specifying the matters that should be addressed in the authority’s annual report and accounts. The Secretary of State intends to make an addition to the accounts direction for 2013 and succeeding years which will for the first time require the CAA to include an efficiency statement in the annual report. The CAA has also agreed to do so for its activities in the current financial year.

The efficiency statement will be subject to validation by the external auditors, whose statement in the annual report will contain a summary of their findings on it, and the Department for Transport will approve the terms of reference for this work. Industry representatives on the CAA’s finance advisory group will be given an opportunity to discuss the statement.

One advantage of such action over the Opposition’s proposed change is that it strengthens the existing annual process of scrutiny, with transparency in relation to industry and to Parliament when the Secretary of State presents the accounts, whereas the NAO’s focus on the CAA would inevitably be less frequent than any annual one. Our approach also enables the CAA to continue to pursue value for money through the selection of its external auditor by tender.

Although I agree with the Opposition about the sentiment of new clause 5, which would impose an explicit efficiency duty on the CAA, I think its adoption is unnecessary because the authority is already subject to such a duty in all but name. The CAA’s strategic plan contains the objective

“to ensure that CAA is an efficient and effective organisation which meets Better Regulation Principles and gives value for money”.

Subsections (3) and (4) of clause 1 already require the CAA to carry out its economic regulation functions under part 1 of the Bill transparently, accountably, proportionately and consistently. To meet its statutory obligation to act proportionately and to target activity only on cases where it is needed, the CAA is obliged to act efficiently and to have regard for the costs and benefits of its activities.

Moreover, the Legislative and Regulatory Reform Act 2006 provides that all statutory regulators

“should be accountable for the efficiency and effectiveness of their activities”.

The Secretary of State for Transport writes to the CAA chair setting objectives for its term, and the most recent such letter makes it very clear that the Government expect the CAA to operate efficiently and to minimise the cost to industry. That oversight, combined with the work of the CAA auditors, gives a strong incentive to secure value for money and offers accountability to Parliament. Over the past 10 years, the CAA has reduced its operating costs in real terms by more than 20%.

I turn now to the points made by the hon. Member for Blackley and Broughton (Graham Stringer). I will not trespass on your patience, Madam Deputy Speaker, with a broad-ranging discussion of aviation capacity, given that that was the subject of a new clause that was not selected, but I reassure the hon. Gentleman that we take this issue seriously and that our approach on a third runway at Heathrow is driven by the evidence on the impact that such a project would have. We believe that it is essential to find an alternative way to meet the long-term capacity needs of the UK economy.

Building a third runway at Heathrow would have a significant noise impact. People who live near Heathrow account for about 70% of the people in the UK and more than one in four of the people in Europe who are exposed to an average noise from airports of more than 55 dB. Thousands of people live with a plane going overhead every 90 seconds on a daily basis, not to mention the planes that wake them up at 4.30 in the morning. The quality-of-life impact of a third runway, which would mean 220,000 more flights every year over a densely populated part of London, would be significant. There is no technological solution in sight to ensure that planes will become quiet enough quickly enough to make the burden tolerable.

[Mr Donohoe]

Just to put it on the record, is the Minister saying that there is no possibility of expansion at Heathrow or near Heathrow, say at Northolt?

[Mrs Villiers]

What I am saying is that we are opposed to a third runway and that we believe it is essential to protect the quality of life of the communities who would be affected by it.

[Dr Julian Huppert (Cambridge) (LD)]

Is the Minister aware of the paper by the Aviation Environment Federation for WWF UK on capacity across the country? It found that there was space for

“a 52% growth in passengers”

and a twofold increase in air traffic movements with existing capacity. Does that mean that there is less need for the expansions that the Opposition seem to be keen on?

[Mrs Villiers]

I warmly agree with my hon. Friend that it is essential to make the best use of the existing capacity in the south-east and around the country. We will explore that in the process that we are undertaking on the future of our aviation capacity needs.

[Gavin Shuker]

I agree with the Minister that we need to make better use of the capacity that we have. Of course, Luton airport in my constituency has more capacity and we are willing to share it. Does she not accept that we have a problem, in that there is no proper UK aviation hub at present?

[Mrs Villiers]

As I said, London is one of the most well connected cities in the world and arguably the most well connected. It has five or, depending on one’s definition, six successful international airports that serve our economy very well. We need this debate to be based on evidence, not on the propaganda that one reads on BAA posters.

As I said, that matter is not, strictly speaking, germane to the motion, so before I try your patience, Madam Deputy Speaker, I will turn to amendments 1 and 2 tabled by the hon. Member for Blackley and Broughton. His intention is that “effectiveness” should be construed as spending wisely. Imposing such an obligation on the CAA could pull it into an inappropriate management role over regulated airports. I am sure that that is not his intention, given that he is rigorous in opposing disproportionate regulation.

My concern is that it is one thing to specify an output that is required, but quite another to specify the manner in which the operator should meet that obligation. The Bill gives the CAA the power to ensure that airports with substantial market power do not impose unreasonable charges on their customers or exploit them. The amendment might oblige the CAA to start telling an airport how to run its business in the most effective way. That outcome would be disproportionate.

The current wording in clause 1(3) is broadly understood by the stakeholders who are affected by the regime. Inserting the word “effectiveness” at this stage might undermine the clarity of the duties to which the CAA is subject, when clarity is one of the most important goals in the Bill.

My hon. Friend the Member for Daventry (Chris Heaton-Harris) is a staunch defender of the air freight industry, and it is always a pleasure to hear his contributions. I repeat the comments that I made in Committee about my admiration for the efficiency and success of that industry in the UK, and I reassure him again that in exercising its information powers in relation to the freight industry, the CAA is obliged to take a proportionate approach. The degree of intervention required in a business-to-business market may be less than is appropriate in the consumer market, and I am sure the CAA will take that on board in ensuring that it takes a proportionate approach.

--- Later in debate ---

[Jim Fitzpatrick]

It is almost breathtaking that, when we are proposing an environmental duty that would cover the busiest airport in the UK, the hon. Gentleman should say, “No, let’s not do that. Let’s wait till we get Southend right.” That just does not make sense. We are arguing for the introduction of an environmental duty now. He is arguing that, although he wants one, this one just does not fit the bill. I was not praising him for his consistency, by the way, and just because he is consistently wrong does not mean that I agree with him.

[Mrs Villiers]

I do not think that the hon. Gentleman is in a position to lecture my hon. Friend the Member for Cambridge (Dr Huppert) on consistency. In theory, Labour opposes a third runway, yet every time one of its Back Benchers mentions the subject, they tend to be very supportive of the idea.

[Jim Fitzpatrick]

The Minister knows full well that the shadow Secretary of State made our position on the third runway quite clear when she invited Members to attend cross-party talks on the subject. To date, as far as I am aware, my hon. Friend has not even had an answer from the Secretary of State. Our position is clear.

--- Later in debate ---

[Mrs Villiers]

It is important for the hon. Gentleman to appreciate that the difference with those bodies is that a universal jurisdiction applies across an entire sector or industry, whereas we are dealing with a situation in which economic regulation applies only to a few airports. That is why this is not the appropriate or right way to deliver environmental regulation.

[Jim Fitzpatrick]

I hear what the Minister says. In our Committee discussions, those we are having today and in discussions outside, transport consistently appears as a big contributor to greenhouse gas emissions. Aviation continues to grow. In a recent speech, I believe to The Times transport conference, the Minister quoted the statistics showing that transport will, year on year out to 2030 and beyond, make a bigger contribution to those emissions, simply because the sector is growing. It cannot be right not to address the question of having an environmental duty at a time when we are we are introducing the new powers and duties and the new regulatory authority through the Bill. Surely now is the appropriate time for it.

--- Later in debate ---

[Pat Glass]

At the beginning of the debate, I said that I felt that the Bill was essentially a good one with a number of omissions, and perhaps the most glaring omission of all is the statutory environmental duty. That statutory duty was part of the Bill when it was drafted by the previous Government, and it is not clear to me why the “greenest Government ever” would remove it.

In Committee, the Minister told us that the Bill is about economic regulation and that there is therefore no room for a statutory environmental duty. However, the Bill is about much more than simply the economic regulation of the CAA. If it was just about economic regulation, it would not include safety or security or an extension of the air travel organisers’ licence. It is not a clean and simple Bill about economic regulation; it is a long overdue consolidation and updating of regulations covering a wide range of issues in which those sections dealing with a statutory duty on environmental issues should have been included but have been deliberately expunged.

I could perhaps understand the Government’s reluctance to include the environmental duty if the CAA was the only economic regulator to have such a statutory duty placed on it. We have heard the Minister say in response to that point that the Bill only covers certain airports, but as my hon. Friend the Member for Bolton West (Julie Hilling) has said, in some areas, such as security, it covers all airports.

[Mrs Villiers]

Will the hon. Lady give way?

[Pat Glass]

May I finish this point? I will then be happy to give way.

Even if the Bill covered only certain airports, would it not be a good start to begin with the biggest airports in the country? The Minister has also said—I am sure she will say it again when she intervenes—that other economic regulators, such as Ofgem and Ofwat, have universal jurisdiction, but that is not true. Ofgem does not have universal jurisdiction. Huge areas of this country, particularly rural areas, are off gas and are therefore not covered by Ofgem. I know that because I and other Members of the House have consistently campaigned to extend Ofgem’s jurisdiction to make it universal. I am sorry, but the Minister’s argument is just not correct.

[Mrs Villiers]

Both the hon. Lady and the hon. Member for Bolton West (Julie Hilling) made points about parts of the Bill covering all airports, and that is undoubtedly true, but the amendments relate to economic regulation. So the amendments seek to use economic regulation as a means of achieving environmental objectives. That is one of my fundamental objections. If we are going regulate for environmental purposes, we need to do it across the board in a proportionate, targeted and efficient way, not via economic regulation.

[Pat Glass]

And I would agree if we had before us some regulation that would cover all airports, but we do not. So I am sorry: we have to start somewhere.

Moving on to the impact of the statutory duty, I cannot believe that anyone would argue that it is not needed. I appreciate that aviation emissions currently make up 6% of UK emissions, but we all know that that is expected to rise to as much as 25%, even if the Government stick to the current targets and even if those targets are met. But as we heard today, environmental issues around airports and air travel go much further than concerns about emissions. They include air quality around airports and in the wider environment, they include noise pollution at and around airports and they include surface transport links and access. As we heard today from my hon. Friend the Member for Blackley and Broughton (Graham Stringer), a recognised expert in this area, most pollution around airports does not actually come from planes; it comes from vehicles going to, from and around airports. Those living around and close to airports are naturally concerned about air quality and noise pollution, and they will be very unhappy to see the Government remove the statutory duty from the Bill.

Finally, I want to move on to the issue of emissions, which are of concern to us all. We all need to know that the CAA will pay proper regard to playing its part in meeting the 2015 targets, in a world in which emissions from aviation are going to increase, and in which the emissions challenge will simply get harder and harder. I do not understand, in this situation of increasing challenge, why the Government are choosing to remove the statutory duty.

I was not surprised that Conservative members of the Bill Committee voted down environmental safeguards, but I was particularly disappointed and surprised that Lib Dem members of the Committee did so too. Listening to the nice warm words today from the hon. Member for Cambridge (Dr Huppert) only increases my surprise and disappointment. I recall that in Committee, he said that he was not supporting our amendment because it was not strong enough. We have had six weeks. He had an opportunity to table much stronger amendments himself, both in Committee and today, and what have we seen? Nothing. All we have seen is the hon. Gentleman turning himself almost inside-out in an attempt to face both ways at the same time. However, all is not lost. He and his Lib Dem colleagues do have an opportunity to salve their conscience, and to have the courage of their convictions by voting for a statutory environmental duty in the Lobby this evening.

[Mrs Villiers]

I would like to assure the House that the coalition takes the environmental impacts of aviation very seriously—both its constituent parties. We take seriously both its global impact in terms of carbon emissions and its local impact in terms of noise and air quality. I welcome the contributions made by so many hon. Members this afternoon about the significance of those impacts—the hon. Members for Feltham and Heston (Seema Malhotra) and for Hayes and Harlington (John McDonnell), and my hon. Friends the Members for Ealing Central and Acton (Angie Bray), for Rochester and Strood (Mark Reckless) and for Cambridge (Dr Huppert). Although I have some sympathy with the underlying purpose of the amendments, there are a number of important reasons why I cannot ask the House to support them today.

I do understand the concerns expressed, by, for example, my hon. Friend the Member for Cambridge and groups such as HACAN—Heathrow Association for the Control of Airport Noise—and AirportWatch. I know that my hon. Friend is looking for further clarity on environmental investment and I hope I can provide some reassurance today on that and on how the Bill will work. I will also say to my hon. Friend and others who have expressed a view today that the Government will continue to listen with great care to the concerns raised on environmental matters, including those set out in the debate today. We shall continue to reflect carefully on whether further clarity needs to be provided in the Bill, and no doubt there will be another opportunity to consider this matter in the other place. The aviation policy framework that we shall publish next spring provides another key opportunity to address the full range of the environmental impacts of aviation and establish the best way to deal with them.

In the Government’s view, the Bill as currently drafted allows the CAA to authorise reasonable investment in measures that mitigate environmental impact, even where they are voluntarily undertaken. Where environmental measures benefit users of air transport services in the provision of airport operation services, the Bill gives the CAA the power to allow for its costs in the regulatory settlement.

The CAA made clear in its evidence to the Public Bill Committee that a system that safeguards the interests of end users and seeks to replicate a functioning market, as this system does, can and does embrace investment in environmental measures and surface access improvements. Iain Osborne of the CAA pointed out in his evidence that unregulated airports across the world invest in environmental measures. For example, although its noise mitigation scheme is now mandated as part of a planning agreement, Birmingham airport operated a voluntary scheme from 1978 to 1996. Since 2003 the airport has also operated a voluntary scheme to provide roof protection for properties affected by roof damage from aircraft vortices. Other examples include East Midlands airport’s investment in wind turbines and Bournemouth airport’s investment in solar panels. We firmly believe that it will continue to be possible for environmental investment to be authorised under the regulatory system proposed in the Bill. I hope that that provides some clarity and reassurance.

Civil Aviation Bill (Programme) (No. 2)

Theresa Villiers Excerpts

Wednesday 25th April 2012 Commons Chamber

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

I beg to move,

That the Order of 30 January 2012 (Civil Aviation Bill) (Programme) be varied as follows:

1. Paragraphs 4 and 5 of the Order shall be omitted.

2. Proceedings on Consideration and proceedings on Third Reading shall be taken on two days in accordance with the following provisions.

Consideration

3. Proceedings on Consideration shall be taken on the first day and shall (so far as not previously concluded) be brought to a conclusion at the moment of interruption on that day.

Third Reading

4. Proceedings on Third Reading shall be taken on the second day and shall (so far as not previously concluded) be brought to a conclusion two hours after their commencement.

If the House agrees to the programme motion, consideration of the Bill will be taken today, and Third Reading will take place after the Queen’s Speech and last for up to two hours. The reason why Third Reading will take place on another day is that this is a carry-over Bill, and, if it is to be successfully carried over, this House must retain ownership of it until after the Queen’s Speech and pass it on to the other place in the next Session.

The proposals in the Bill were subject to extensive consultation, and to pre-legislative scrutiny by the Select Committee on Transport, for which I am grateful. The Bill also received very thorough scrutiny in Committee, and I thank Members for that. I also welcome the extent of cross-party support for much of the Bill, and I am confident that today’s debate on Report will maintain the high standards and the well-informed contributions that we have seen in the House throughout the Bill’s consideration.

Question put and agreed to.

Parliamentary Written Answer (Correction)

Theresa Villiers Excerpts

Tuesday 24th April 2012 Written Statements

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

I regret to inform the House that there was an inaccuracy in the answer I gave to parliamentary question 98207 on 5 March, Official Report, column 411W and subsequent comments made by the Secretary of State for Transport in debates held on 8 March, Official Report, column 1035 and 23 March, Official Report, column 1049 about how many miles of railway track were electrified between May 1997 and May 2010.

The correct answer is approximately nine route miles were electrified between May 1997 and May 2010, not 39 route miles as previously stated. This total does not include newly constructed railways.

Oral Answers to Questions

Theresa Villiers Excerpts

Thursday 19th April 2012 Commons Chamber

[Paul Blomfield (Sheffield Central) (Lab)]

6. What progress she has made on the electrification of the midland main line; and if she will make a statement.

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

The Government are reviewing the business case for electrification of the midland main line, and we will consider this very carefully when we make our decisions in the summer on rail investments in the next rail control period from 2014 to 2019.

[Paul Blomfield]

I thank the Minister for her answer and for her response to Monday’s Adjournment debate, which again showed the wide support among hon. Members on both sides of the House for improvements to the midland main line. She knows that electrification alone will not deliver the improved journey times, and that the £150 million needed for the further track improvements, particularly at Market Harborough, Leicester and Derby, will make the difference, for a relatively modest investment. Does she therefore agree that we need to cut corners on the track and to do so on the budget would be a false economy?

[Mrs Villiers]

I very much agree that Monday’s debate was excellent. Although the hour was late, the attendance was strong, with a huge number of hon. Members demonstrating their support for a project that does have a good business case; electrification will be expected to pay for itself over the appraisal period. We will consider the other upgrades that the hon. Gentleman would like to happen. We do not think that their business case is likely to be as strong, but those projects will be examined carefully, too, alongside all the other competing priorities, including projects such as the northern hub.

[Nicky Morgan (Loughborough) (Con)]

16. I thank the Minister for her constructive comments and response to the Adjournment debate that I led on Monday evening. Given the remarks she made just now, she is obviously aware of the cross-party support in the House for the upgrade and electrification works. I hope that she is also aware of the support outside, including from all the local enterprise partnerships and councils affected. Is there any further information that any of us campaigning for the electrification and upgrade of the midland main line could provide to her or her office before her decision is made?

[Mrs Villiers]

My hon. Friend has been running a great campaign on this issue, alongside many other honourable colleagues. As she says, support has been demonstrated by a lot of the other stakeholders and, of course, by the Derby Telegraph, fine institution that it is. We are confident that we have the information we need, working with Network Rail, and we will be looking further at that in the run-up to these decisions. Of course we take this issue very seriously, because we are committed to electrification of the rail network; we are committed to about 800 miles of it, with about 130 miles of it on stream with TransPennine electrification, whereas the Labour Government only managed less than 10 miles of it.

[Jonathan Ashworth (Leicester South) (Lab)]

May I tell the Minister that this project also has huge support from the fine institution that is the Leicester Mercury? She has referred to the strength of feeling expressed in Monday evening’s debate. This project has huge cross-party support and support in the business community, although there is concern in some quarters that, because of HS2, we will not get the money for it. Given that the population and the conurbations that this line serves are likely to expand greatly over the next few years, the sooner she can give us a firm commitment on this, the better.

[Mrs Villiers]

I am delighted that the Leicester Mercury is also on side, too. As the Secretary of State has made clear, we believe that it is important to invest in and upgrade our current rail network, as well as prepare for the challenges of the future with HS2. But it is only because this Government have made a decision to prioritise investment in transport, despite the deficit that we inherited from our predecessors, that we are having this conversation at all and it is the only reason that electrification of the midland main line is a real possibility.

[David Tredinnick (Bosworth) (Con)]

Does my right hon. Friend agree that the project is tremendous value for money, because it will take pressure off the east and west coast main lines? With the prospect of a 60-minute journey from Leicester to London, there will be more demand on the line, so the cross-party support is genuine.

[Mrs Villiers]

I agree that electrification has general benefits, many of which would materialise if electrification on the midland main line were to go ahead. It will depend on whether it is affordable and on the assessment of competing priorities, which are also supported by communities in other parts of the country. We will take all economic issues and environmental benefits into account.

[Mr Brian H. Donohoe (Central Ayrshire) (Lab)]

7. What recent discussions she has had with the Chancellor of the Exchequer on the cost of fuel.

--- Later in debate ---

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

8. What assessment she has made of the effect on jobseekers of rail fare increases.

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

No specific assessment has been made of the effect on jobseekers by my Department. The Department for Work and Pensions has a scheme in place to assist jobseekers. Jobcentre Plus issues a discount card to eligible jobseekers to help them travel more cheaply on train services to job interviews and for vocational training. The card offers a 50% discount on a wide variety of fares including London travelcards.

[Grahame M. Morris]

A previous Conservative Secretary of State advised people to get on their bike to find work; it seems that the Department for Transport has taken that advice to heart given the rapid increases in rail fares, particularly over the next two years. Can the Minister confirm that the Government will now allow train companies to increase fares by as much as 8% above inflation over the next two years, and will she at least consider limiting the cost for those people in constituencies such as mine for whom this is very difficult?

[Mr Speaker]

I am grateful; we have got the point.

[Mrs Villiers]

This Government are determined to get the costs of running the railways down. We have a plan for delivering that—a plan that has been opposed by Labour Members, who have provided no ideas themselves on how we deal with this problem. We are determined to deliver better value for money for passengers. That is why we are going to get the cost of running the railways down.

[Alok Sharma (Reading West) (Con)]

Jobseekers and workers from my constituency travel regularly by train to London and elsewhere in the south-east and the wider introduction of smart ticketing should help to reduce their travel costs. Can the Minister update the House on plans to extend smart ticketing across the south-east, funding for which was announced in the Chancellor’s autumn statement?

[Mrs Villiers]

We believe that introducing smart ticketing across more of our national network is a very important way to improve services for passengers to make ticket-buying easier and more convenient and also as a way to assist our efforts to get better value for money for passengers and in terms of reducing the costs of running the railways. That is why we have allocated funding to projects to deliver smart ticketing in the south-east and why we are funding the interaction of ITSO with Oyster in London. We are determined that the sort of benefits that people have enjoyed with Oyster in London for many years can start to be enjoyed across a wide range of services across the national network.

[Mrs Louise Ellman (Liverpool, Riverside) (Lab/Co-op)]

The Government’s plans for the future of the rail service include the statement that Ministers wish to withdraw or reduce rail subsidies. What impact would this have on rail fares?

[Mrs Villiers]

What we want to do is get the cost of running the railways down so we take the pressure off fares and off the taxpayers’ subsidy. We need to be fair to both the groups that fund the railways and it is vital that we go forward with our programme to give better value for money and eliminate the inefficiency in the railways that arose under Labour’s term of office. In its term of office, fares rose and inefficiency increased dramatically in the railways.

[Stephen Mosley (City of Chester) (Con)]

My hon. Friend will be aware that the Opposition said they would cap train fares this year by the retail prices index plus 1%, but where Labour is in control, in Wales, it has maintained the 5% flex element. Is this not just another case of the Opposition saying one thing but doing another?

[Mrs Villiers]

My hon. Friend is absolutely right. We cannot believe a word Labour says on fares. The Leader of the Opposition stood at the Dispatch Box and said that the fares basket flexibility was an outrage, yet the Labour Administration in Cardiff are still using it. When it comes to Ken Livingstone, we cannot believe a word he says either on fares.

[Maria Eagle (Garston and Halewood) (Lab)]

Does the Minister understand that many people who are out of work do not have easy access to the internet and rely on the help and advice of staff to ensure they get the cheapest fare, which is not always clearly advertised or available at ticket machines? Can the Minister confirm whether it is Ministers or train companies who are responsible for the decision to close many of these vital ticket offices?

[Mrs Villiers]

The hon. Lady should give me an example of these closures, because I have to say they are not happening. No decisions have been made on possible changes to the way that ticket offices are regulated and we are going to be looking at this issue as part of our efforts to drive efficiency in the railways, but before any decisions are taken we will think very carefully about the impact on all rail users, including the disabled, those who are jobless and those with visual impairments. This is a very important issue to get right and part of the way we will deal with it is by expanding the smart ticketing and alternative ticket-buying opportunities we have discussed this morning.

[Maria Eagle]

That is an interesting answer. The Minister seems to be out of touch with what is happening in her own Department. I have here a leaked e-mail, dated just two weeks ago, from the civil servant responsible for the rail fares and ticketing review. It says that

“the Minister has already decided to approve some ticket office closures (it’s just not been announced yet…)…there will be more of those in future.”

What is worse, she then admits that Ministers plan to pin the blame for the closures on the train companies, saying,

“your way of slipping in there that the initiative comes from TOCs not us is very neat”.

Will the Minister now own up and admit that she has already given the green light to these closures, which passengers will find not “very neat” but very inconvenient and very expensive?

[Mrs Villiers]

The shadow Secretary of State refers to the proposal from London Midland, which is being considered but on which no final decision has been made.

[Brandon Lewis (Great Yarmouth) (Con)]

9. What discussions her Department has had with local authorities on the devolution of funding for major local transport schemes.

--- Later in debate ---

[Paul Maynard (Blackpool North and Cleveleys) (Con)]

T4. The Minister will be aware from her answers to my written parliamentary questions that the Labour party spent no money and completed no track work for the northern hub during its time in government. I am sure that the House welcomes the Ordsall Chord as the down payment on the northern hub, but can she assist those in the Chamber who might be frustrated by the lack of progress on how the new infrastructure projects, such as electrification, impact on the delivery of the northern hub?

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

It is right that the Government are making considerable progress on the northern hub, in contrast to our predecessors—not just the Ordsall Chord but north trans-Pennine electrification, improving the Hope Valley line and other improvements that will benefit Manchester, Sheffield, Bolton, Preston, Rochdale, Halifax and Bradford. I acknowledge that there is more to do, and the remaining elements of the northern hub will be carefully and seriously considered when we make our decisions on the next high-level output specification railway control period.

[Mr Clive Betts (Sheffield South East) (Lab)]

T2. I apologise for raising again the issue that I raised last month without getting an answer. Two years ago the Government inherited an in-principle agreement from the previous Government for the tram train pilot scheme in Sheffield. The scheme is not about rolling out multi-billion pound expansion across the country at this stage. A simple pilot could determine whether what works in other countries works here. When will we have a starting date?

[Jack Lopresti (Filton and Bradley Stoke) (Con)]

T6. Officials in the Department are considering the Greater Bristol metro rail campaign’s four-track bid for high-level operating strategy funds. Does the Minister agree that, if successful, the four-track system at Filton bank would unlock an essential local railway line for more regular local trains serving popular residential and business locations?

[Mrs Villiers]

I am very aware of the project and I recognise its benefits, and officials at the Department for Transport are working with Network Rail and the local authorities concerned. It looks to have a fairly positive business case and we will consider this alongside all the others put forward this morning that could be funded in railway control period 5.

[Mr Stephen Hepburn (Jarrow) (Lab)]

T3. Will the local transport Minister give us an assurance today that, despite Government Members’ statements, there will be no planned changes to the concessionary fares scheme?

--- Later in debate ---

[Tony Lloyd (Manchester Central) (Lab)]

T8. Do Ministers accept that when railway stations are left without staff, the travelling public, particularly women, feel insecure using them? Will they give an absolute guarantee that staff will not be taken out of stations when that would put the public at any kind of risk?

[Mrs Villiers]

In deciding the rules on ticket offices, it will of course be important to consider carefully how best to deploy staff in a way that keeps passengers safe and secure, so the issues the hon. Gentleman raises will be an important part of our thinking before we decide whether any changes need to be made.

[Henry Smith (Crawley) (Con)]

T10. Will my right hon. Friend join me in paying tribute to the staff of Virgin Atlantic, Gatwick Airport Ltd and the South East Coast ambulance service for their professionalism when assisting passengers following the emergency landing of flight VS27 earlier this week?

[Alison McGovern (Wirral South) (Lab)]

Current electrification schemes for a better railway agreed under the previous Government will hopefully yield lessons on how to improve engineering processes and should make electrification of the midland main line and the important scheme for the Wrexham to Bidston line, which runs through my constituency, a better prospect. What early lessons has the Department learned on how to improve engineering for electrification?

[Mrs Villiers]

Sir David Higgins has come up with some great ideas exactly along the lines the hon. Lady mentions, which could considerably reduce the cost of delivering electrification. However, it is still expensive and still has to be affordable, so we will have to look at priorities.

[Mr John Leech (Manchester, Withington) (LD)]

Has the Secretary of State now calculated the cost associated with increasing the motorway speed limit to 80 mph and the increased number of casualties expected as a result of such a measure?

High Speed 2 (Scotland)

Theresa Villiers Excerpts

Wednesday 18th April 2012 Westminster Hall

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

It is a pleasure to serve under your chairmanship for the first time, Mr Havard, and I congratulate the hon. Member for Glenrothes (Lindsay Roy) on a thoughtful and well informed speech on an important topic. I, too, thank other hon. Members for attending the debate. I agreed with almost everything the hon. Gentleman said, in particular that successfully delivering a high-speed rail network is in large part assisted by and dependent on maintaining cross-party consensus. We are grateful for the consensus that we have seen on this matter to date, and the attendance at today’s debate demonstrates the support for high-speed rail across parties and in different parts of the United Kingdom.

The ability to travel quickly and efficiently between the UK’s productive centres is vital for commerce to thrive and for businesses to create jobs and invest in our country. High Speed 2 is a core element of the Government’s vision for a transport system that is an engine of economic growth, as the hon. Gentleman highlighted. A new national high-speed rail network will deliver massive benefits in capacity, connectivity and reliability, which will help to underpin prosperity right across Britain and leave a lasting legacy for generations to come.

I fully recognise that there is tremendous support for high-speed rail in Scotland. As the hon. Gentleman highlighted, recent evidence for that is provided by the “Fast Track Scotland” report of the Scottish Partnership Group, which comprises a wide range of business groups, local authorities and the Scottish Government. We all share a vision for faster journeys that bring the constituent parts of our island closer together.

The hon. Gentleman focused strongly on the need to take high-speed rail to Scotland as soon as possible. The coalition agreement makes it clear that our ultimate goal is a genuinely national network, with high-speed services from London to the midlands and the north, including Scotland. We see phases 1 and 2 of the High Speed 2 project as the best way to make progress towards that goal. If we look back over our transport history—we can look at the construction of the first railways, the London underground or the motorway network, for example—we see that major networks have invariably been delivered in phases over a number of years. For high-speed rail in Britain to be an affordable and manageable proposition, the only viable option is a phased approach. Our priority is therefore delivery of the Y network, with London to the west midlands as the first phase.

However, the day after we announced our decision on phase 1 of the network, the Under-Secretary of State for Transport, my hon. Friend the Member for Hemel Hempstead (Mike Penning), was north of the border at a meeting arranged by Transport Scotland to outline the details of the announcement and to discuss the next steps with key Scottish stakeholders; and last month, my right hon. Friend the Secretary of State attended a round table with Scottish businesses. She also had very constructive discussions with Keith Brown, the Minister for Housing and Transport in Scotland. She has agreed that the two Governments will step up their engagement on this issue, with a view to establishing an appropriate division of responsibility and putting the necessary governance in place to work through potential solutions.

Working with the Scottish Government, we hope to develop a mutually agreed timetable over the summer for our plans to consider progressing HS2 further. Officials from the two Governments are due to meet within the next few weeks to start that new strand of work. Care is needed in considering the case for extensions. All relevant evidence and options need to be properly assessed. It would be in no one’s interest if work on possible extensions slowed down progress on the Y network. Moreover, it will be difficult to look seriously at the route of potential extensions until we are much closer than we are now to a decision on routes to Manchester and Leeds—something on which the Government have only just received the advice of HS2 Ltd.

Undoubtedly, therefore, there are some practical constraints on the extent of the work that can be done at this stage, but I assure the hon. Member for Glenrothes and others attending the debate that those practical considerations do not mean that the Government will sit back until the full Y network is completed before looking seriously at how high-speed services could be extended.

[Sheila Gilmore]

We are all very conscious that the Government have come in for criticism. People have said, “Why bother taking high-speed rail to Birmingham when it will lop such a small amount off journey times?” Given that the real benefits, both economic and environmental, will come when we get the extension to Scotland, is there not a great deal of value in progressing those plans as quickly as possible, because that will reinforce the argument for the first part of the scheme?

[Mrs Villiers]

As I have said, we are certainly prepared to start considering the future development and expansion of the network while still in the process of delivering the initial phases. The question has often been asked, including by the hon. Member for Glenrothes today, about who would pay for what were there to be extensions. It is too early to start to design funding packages, although I am sure that hon. Members will be aware that the devolution settlement gives the Scottish Government the responsibility for funding rail infrastructure that is north of the border.

The hon. Gentleman also expressed concern about the impact that a vote for separation and division of our nation would have. I agree that such a huge constitutional change would make it much more difficult to deliver major improvements to our transport network, if only because of the distraction that it would cause. If the entirety of the Government machine is focused on separating itself from the rest of the United Kingdom, that will inevitably have a detrimental effect on efforts to stimulate the economy and to improve the transport infrastructure.

We have already begun work with partners north of the border to ensure that Scotland gets the most out of our current plans for HS2, as well as to explore fully Scotland’s future aspirations for even faster connectivity. We should not underestimate the benefits that Scotland will get from the Y network, which we are already taking forward. It is a fact that the benefits of HS2 will extend far beyond the cities directly served by the Y network. HS2 Ltd’s estimate of the £44 billion economic boost that high-speed rail could produce is a cautious one, and the boost will be felt in Scotland and the north of England as well as in the south.

HS2 will increase capacity and enhance connectivity all the way to Scotland by relieving pressure on the most congested, southern end of the west coast line. The seamless transition of trains on to the east and west coast main lines from the Y network will deliver faster journeys to destinations the length of Britain. Completion of the Y network is expected to slash the journey time between Edinburgh and Glasgow and London to about three and a half hours. That will deliver very significant connectivity and economic benefits. We want those benefits to be delivered as soon as possible—a number of hon. Members mentioned the time of delivery—which is why we are exploring options for bringing forward formal public consultation on phase 2 of the Y network. We will set out our proposed timetable later this year.

[Lindsay Roy]

The evidence indicates quite clearly that a quantum modal shift from air to train would be achieved if the journey time could be two to two and a half hours. With a journey time of three and a half hours, there would still be a propensity to go for air transport.

[Mrs Villiers]

I am not sure that I agree with the hon. Gentleman on that. Given the experience with high-speed rail in the rest of Europe, I think that a journey time of three and a half hours will make rail a very attractive alternative to flying, particularly when one factors in the increased time at either end of an air journey. There is quite an intense debate on the issue of an air-to-rail switch, but experience in the rest of Europe shows that a high-speed rail journey of three and a half hours is generally an attractive alternative to the plane.

The claim by opponents of HS2 that better, faster transport between north and south will see economic activity pulled into London and away from the UK’s other great cities is misguided. I have every confidence that bringing Edinburgh and Glasgow closer to London with the Y network—a journey time of three and a half hours—will be a real boost for those cities, as well as for the cities of the midlands and the north of England. That confidence is based on the evidence from our European neighbours, who began their high-speed rail journey a generation before we had even started arguing about the first 67-mile stretch of track from the channel tunnel. The hon. Gentleman expressed concern about how slow Governments have been to take up that challenge.

Faster journeys will see more extensive modal shift between air and rail as the train becomes the mode of choice for more travellers, countering the allegation made by opponents that HS2 is not green. High-speed rail is already greener than flying, but the difference between the two modes will widen as we clean up our sources of electricity generation.

A crucial point to underline is that we are not pursuing HS2 just because of the positive benefits that we believe it will generate. The case for HS2 also rests on the pressing need to head off big problems that are heading towards us and will affect the whole of Britain. The simple fact is that the demand for inter-city transport capacity is growing strongly and has been for many years. If we fail to deal with the capacity pressure that we will face in future years, we will do lasting damage to our economy and competitiveness.

I emphasise that HS2 does not mean that we will stop investing in and improving our current transport networks. We fully recognise the importance of continuing to enhance our existing rail network, and that includes improving links between England and Scotland, not least because of how determined we are that the benefits of the Y network must be felt well beyond the cities that it serves directly. We have therefore embarked on a major programme of rail improvements, including the inter-city express project, which will create new jobs in the north-east and deliver a new fleet of trains for the east coast line. Those trains will start operating in 2018, offering faster, greener, higher-capacity and better-quality services, boosting fast-line capacity from Scotland into King’s Cross and cutting journey times.

On the west coast route, the long-awaited new Pendolino carriages have started service on the Birmingham-to-Scotland corridor. The Manchester-Scotland route is also due to get new trains, with delivery complete by May 2014. The new east coast timetable introduced last May increased the number of through-services between—

[Mr Dai Havard (in the Chair)]

Order. The time for this debate has been exhausted. Thank you very much.

Midland Main Line

Theresa Villiers Excerpts

Monday 16th April 2012 Commons Chamber

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

Like others, I congratulate my hon. Friend the Member for Loughborough (Nicky Morgan) on securing the debate and on an excellent speech. I welcome the strong interest shown in the debate by the presence of so many hon. Members from up and down the length of the route.

My hon. Friend put the case for electrification of the midland main line with cogency and clarity and I pay tribute to the campaign that she, so many of the groups she mentioned and so many of the Members in the Chamber have been leading on that important issue. I welcome the interest of the Derby Telegraph, a paper with which I am very familiar—for all sorts of reasons. I have received many representations from Members who are attending the debate and from other groups and colleagues. I particularly mention the representations received by the Parliamentary Secretary to the Treasury, my right hon. Friend the Member for Derbyshire Dales (Mr McLoughlin).

[Anna Soubry (Broxtowe) (Con)]

Does my right hon. Friend agree that we are seeing a complete outbreak of cross-party support for the project? She identifies Members representing cities and towns—for example, Beeston and Attenborough in my constituency—all of which will benefit if the scheme goes ahead. I do not know whether she has seen a paper written by Jim Bamford from Nottinghamshire county council—my hon. Friend the Member for Loughborough (Nicky Morgan) referred to him. He sets out the excellent economic case for electrification and the improvement of the line not just for the good people of greater Nottingham but for those throughout the whole of the east midlands right up to south Yorkshire.

[Mrs Villiers]

My hon. Friend is entirely correct. There is significant cross-party support, and there is a range of interesting research and evidence on the potential benefits of electrification of the midland main line, much of which I have seen directly. As I think the hon. Member for Leicester South (Jonathan Ashworth) mentioned, in February, I met MPs to discuss the proposals, along with the deputy mayor of Leicester. This debate provides a welcome opportunity for the House to reflect on an important subject for the regions concerned.

[Chris Williamson (Derby North) (Lab)]

I, too, congratulate the hon. Member for Loughborough (Nicky Morgan) on securing the debate. I think that the case for the electrification and upgrade of the midland main line is unanswerable, and I hope that we will hear some reassuring words from the Minister this evening. Does she agree that it is absolutely essential that the Government do everything in their power to ensure that the trains that run on the midland main line—and indeed on every railway line in the country—are, wherever possible, built in British factories, and preferably in the Derby factory of Bombardier?

[Mrs Villiers]

The hon. Gentleman knows that I have a very high regard for the Bombardier operation in Derby, and he will appreciate that we are bound by European rules on the procurement of rolling stock.

The Government appreciate the economic benefits that investment in transport can bring in general. That is why we have given priority to investment in our rail network, even when budgets are limited by the pressing need to deal with the deficit. As well as going ahead with high-speed rail, we have embarked on a major programme of rail improvements on a scale larger than anything attempted since the Victorian era. That programme plays a significant role in two of our important priorities: promoting economic growth and cutting carbon. It is also vital that we get the cost of running the railways down, so that we can respond to concerns about fares.

Where there is a strong business case, and subject to affordability, the Government support the progressive electrification of the rail network as a way to reduce the cost of running the railways, boost the economy, increase passenger comfort, and reduce carbon. As we have heard from my hon. Friend the Member for Loughborough, electric trains cost less in fuel and maintenance than their diesel equivalents; they are quieter; they are lighter, which saves on wear and tear to the track; and they emit less carbon dioxide. That is why the Government have already committed to an extensive programme of rail electrification, which includes the Great Western main line from London to Oxford, Newbury, Bristol and Cardiff, and lines in the north-west, including from Liverpool to Manchester and from Blackpool to Manchester. Indeed, Mr Deputy Speaker, your constituency is set to benefit from the changes. Subject to confirmation of the business case, the line from Manchester across the Pennines to Leeds and York is also due to be electrified.

As my hon. Friend the Member for Loughborough and others have rightly emphasised, the midland main line plays a major role in supporting the economies of the east midlands and south Yorkshire. Most inter-city services on the line are provided by modern, high-performance, diesel Meridian trains. The line also benefits from the recent investment in new stations at Corby and East Midlands Parkway, and from the £800 million transformation of St Pancras. The Government have committed to further improvements by 2014. Network Rail is due to complete a £69 million investment to deliver an eight-minute improvement in journey times for passengers between London and Sheffield. In the longer term, the economies of the east midlands and south Yorkshire will benefit from the second phase of High Speed 2, with journey times slashed and rail capacity dramatically increased.

We recognise that there is a good case, on economic and financial grounds, for further investment in the midland main line over and above what we are already committed to. The scale of what can be delivered depends on what is affordable, and on a careful and fair assessment of competing priorities elsewhere on the rail network. The report commissioned by East Midlands Councils and South Yorkshire passenger transport executive entitled “The Case for Upgrading and Electrifying the Midland Main Line” is very impressive. It highlights significant potential economic, environmental and financial benefits from electrification and the other upgrades to which my hon. Friend the Member for Loughborough referred.

The Government recognise that the electrification of the midland main line could help spread the benefits of HS2, because it would enable through-running of services between the new high-speed network and the midland main line. This is something that we will consider as we prepare our response to the advice of HS2 Ltd on phase 2 of the project to complete the Y network to Manchester and Leeds. This potential benefit and the others mentioned today, including the important points made by my hon. Friend about freight and the potential benefits to freight from an electrified midland main line, will all be taken into account in our decisions on the forthcoming HLOS statement.

As my hon. Friend the Member for Loughborough set out, electrification of the midland main line and various other upgrades to the line are included in Network Rail’s initial industry plan for possible delivery in the period between 2014 and 2019. This document and the priorities that it sets out will play an important role in forthcoming decisions on which projects can be funded in the CP5 rail period to 2019. I welcome the decision by the rail industry to prioritise electrification of the midland main line in the IIP. The Government are currently considering how much funding will be available in total for rail investment in the five-year period up to 2019 and how it should be allocated. We will announce our decisions by July.

Although the business case for midland main line electrification does indeed look impressive, as I have acknowledged at the Dispatch Box before now, there can be no doubt that the project would be complex and challenging, and it would be expensive to deliver. Network Rail has estimated the capital cost of electrification alone to be just over £530 million, not including the other improvements mentioned in the debate. Major engineering work would be required. Just to make room for the overhead wires, more than 50 bridges would have to be rebuilt.

So, alongside midland main line electrification and upgrades, we will need to assess the case for improvements on other routes to determine which projects are given priority. The initial industry plan contains proposals for rail improvements likely to cost about £4.5 billion in total during the CP5 control period. This is on top of £5 billion for projects already committed for the period, so we will need to strike a balance and make choices. Of course we want to fund projects which promote economic growth and improve efficiency, as we believe electrification of the midland main line would do. We also need to ensure that the Government’s finances are not overstretched during difficult times.

[Sir Alan Meale]

I refer again to the point that I raised earlier—£12.2 billion was spent on the networks, but only £200 million of it went in the east midlands. That is not fair. We demand and we need the extra investment.

[Mrs Villiers]

I can reassure the hon. Gentleman that we are committed to continuing investment in our rail network. We are committed to a major programme of electrification. The previous Government managed only about 15 or 20 miles of electrification in 20 years, so we are making progress on that. Although I cannot prejudge the outcome of the deliberations, I can assure my hon. Friend, the hon. Member for Mansfield (Sir Alan Meale) and everyone else attending the debate this evening that we recognise the benefits that electrifying and upgrading the midland main line would bring. We are aware of the strength of the business case. We are very much aware of the strength of the support for this important upgrade to the rail network. That is why we are working closely with Network Rail to ensure that we have the most up-to-date information to inform our decisions on the midland main line project and whether we can include it in the HLOS programme for CP5.

[Meg Munn]

Can the Minister tell us what role the reduction in emissions will play in the decision?

[Mrs Villiers]

It is important to take into account the potential environmental benefits of any project in all areas of government, and I acknowledge that electrification of the midland main line would have a positive impact in reducing carbon emissions. We will take that into account.

The hard work of my hon. Friend the Member for Loughborough, many of the other MPs who are here, the local authorities, the stakeholders and the local newspapers on this issue has given momentum to the campaign to electrify and upgrade the midland main line. I congratulate them all on that. We will continue to listen with care to the views of all who promote this project when we make decisions on which rail projects can be prioritised and afforded in the next railway control period. This debate has provided more useful and valuable input into that decision-making process. I am grateful to all Members who have contributed. I will take very seriously the representations made in this debate and the numerous representations that I and the Department have received on the benefits to be gained environmentally and economically from electrifying and upgrading the midland main line.

Question put and agreed to.

EU Transport Council

Theresa Villiers Excerpts

Tuesday 27th March 2012 Written Statements

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

I attended the first Transport Council under the Danish presidency (the presidency) in Brussels on Thursday 22 March.

The presidency sought agreement to a general approach on a proposal for a regulation which defines the trans-European transport network (TEN-T). This sets out the actions to be undertaken at EU and member state level to develop the network. I was able to support the general approach after securing a UK amendment that will ensure that progress on the projects required by the regulation would be subject to the availability of financial resources. This amendment received support from Germany, Latvia, Finland, Romania, Ireland, Bulgaria, Slovenia and France. In my contribution to the debate, I also argued that governance structures on corridors should be less burdensome, more flexible and focus on contentious cross-border projects. Most member states supported the compromise text which was viewed as a balance between the Commission’s initial proposals and what they could accept.

The Council also agreed a general approach on a proposal for a regulation of the European Parliament and of the Council on ground-handling services at EU airports and repealing Council directive 96/67/EC. This proposal is part of the airports package. My intervention emphasised the UK’s reservations about the cost impact and administrative burdens of the original proposal, but I acknowledged that these had been largely addressed in the presidency’s revised text. In particular, I welcomed the removal of compulsory licensing and of the Commission’s proposed powers to tell a member state to close its markets to third country operators that refused to open theirs. Another important point secured in the negotiations in the run up to the meeting was the assurance that service quality would be set locally, with enforcement centred on the contractual relationships between airports, airlines and ground-handlers, with efforts to set homogenised Europe-wide standards removed from the proposal.

In the light of these changes and the fact that the regulation is expected to deliver more competition in ground-handling at airports in other European countries and hence reduce costs for airlines (and indirectly for passengers), I felt able to support the presidency’s compromise text.

Under any other business, the Commission set out their future intentions on the follow up to the Costa Concordia accident in Italy in January. They intend to carry out a review of legislative proposals on domestic passenger ships, to be submitted for consideration at the IMO (International Maritime Organisation). The Commissioner also indicated there may be a revision to the ship stability directive, and work on watertight doors, with a second wave of regulatory activity later in the year. The Commissioner was supportive of renewed discussion both with the EU and the IMO on passenger ship safety. Italy gave an account of the emergency response to the accident and noted there would be an administrative enquiry.

I intervened to stress the need for a considered response that takes on board the outcome of the investigation currently underway before any decisions are taken as to whether regulatory changes are needed.

Also under any other business, the Commission provided an update on the international reaction to the inclusion of aviation in the emissions trading system (ETS). The Commission reported that the International Civil Aviation Organisation (ICAO) had initiated new work to identify a global market-based measure for the aviation sector. If this work leads to an international agreement on tackling climate change emissions from aviation, the EU could, as set out in the ETS directive, review its legislation. I stressed the importance of maintaining a unified and robust European position and there was clear support from other member states for the aviation ETS.

The proposal for a regulation of the European Parliament and of the Council amending Council regulation (EEC) No 3821/85 on recording equipment in road transport on which the presidency was hoping for a general approach and the any other business item Galileo and EGNOS programmes on which the Commission was providing information, were not discussed at the Council.

During my visit, I was also able to hold a bilateral discussion with the vice-president of the Commission, Siim Kallas on the main items for Transport Council discussion. A constructive exchange took place on upcoming Commission proposals for airport slots and rail policy. I used the opportunity to highlight the UK’s work with the Commission on the better regulation agenda.

I also met my counterparts from Cyprus and Ireland to discuss plans for their forthcoming presidencies of the EU, in July-December 2012 and in January-June 2013, respectively. The Cypriots’ main priorities focus on re-energising the integrated maritime policy, and promoting ‘Blue Growth’. The Irish are at an early stage in their preparations and sought UK’s views ahead of their presidency. My discussion with the Cypriots and Irish Ministers also included an overview of the important work that the UK is taking forward with the European Commission on the better regulation agenda.

Night Flying Restrictions (Heathrow, Gatwick and Stansted)

Theresa Villiers Excerpts

Monday 26th March 2012 Written Statements

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

The current restrictions on night flying at Heathrow, Gatwick and Stansted airports were set in 2006 and are due to expire in October 2012.

The Government’s forthcoming aviation policy framework will set out key parameters for aviation, including on noise annoyance to local communities. To ensure our proposals to replace the current night flying regime can take account of the aviation policy framework which the Government have committed to have in place by next spring, and will include the framework for managing noise, we will extend the existing night flying regime at these airports for a period of two years until October 2014. As a first step to replace the current regime in 2014, we will launch a first stage consultation later this year which will seek detailed evidence of the effectiveness of the current regime including costs and benefits and airlines’ fleet replacement plans. This will be followed by a second consultation next year which will enable us to take account of adopted policy when developing our specific proposals.

The Government will take into account the freeze in quota limits during this extension period when setting the next regime and expects airlines to continue to improve their environmental performance in the interim.

Further details of the extension and the timetable for setting a new regime have been published on the Department’s website.

EU Transport Council

Theresa Villiers Excerpts

Thursday 15th March 2012 Written Statements

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

I will attend the first Transport Council of the Danish presidency (the presidency) which will take place in Brussels on Thursday 22 March.

The presidency hopes to achieve general approach on the following:

A proposal for a regulation of the European Parliament and of the Council on Union guidelines for the development of the Trans-European Transport Network (TEN-T). Progress to date has been encouraging. The revised text issued by the presidency has gone some way to addressing our concerns, particularly in relation to binding standards and deadlines. And also by recognising the need to take account of member states’ finances and to consider the economic viability of projects. Additionally, I will continue to push for changes on the core network and TEN-T corridors to minimise risks to the UK. I will consider whether the improvements achieved are satisfactory to justify UK support for a general approach.

A proposal for a regulation of the European Parliament and of the Council amending Council Regulation (EEC) No. 3821/85 on recording equipment in road transport and amending Regulation (EC) No. 561/2006 of the European Parliament and the Council. This proposal would amend the specification for tachographs, which measure hours spent at the wheel by commercial lorry and bus drivers. The proposed general approach addresses many of the concerns raised through negotiations, including:

Removing the proposed ban of operators with tachograph workshops from installing or calibrating tachographs in their own vehicles. Member states are left to take appropriate measures to prevent conflicts of interests between workshops and operators.

Removing the proposal to merge the driving licence with the tachograph card.

These represent significant gains for the UK with regard to minimising costs and burdens on industry and the Government.

A proposal for a regulation of the European Parliament and of the Council on ground-handling services at EU airports and repealing Council Directive 96/67/EC (part of the airport package). The proposed regulation has been subject to intense official-level scrutiny by Council working groups and these discussions are ongoing. Progress to date has been encouraging from a UK perspective, and we believe that the resulting regulation could potentially help further open up market access while minimising administrative and financial burdens for industry. However, at this stage, it remains unclear whether or not it will be possible to seek a general approach at the March Council. If it is not possible, there will be an orientation debate instead.

Under any other business, the Commission will provide information on the Costa Concordia accident, the aviation emissions trading system and the Galileo and EGNOS programmes.

Rail Ticketing and Overcrowding

Theresa Villiers Excerpts

Tuesday 6th March 2012 Commons Chamber

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

I congratulate my hon. Friend the Member for Reading West (Alok Sharma) on securing the debate, and on his interesting and well-thought-through contribution on the issues that face not only his constituents who commute but rail passengers across the country. There is no doubt that there are significant concerns about overcrowding on a number of routes at particular times of the day, including those used by his constituents. The Government take those concerns very seriously. We also take seriously the problems on routes into a number of cities around the country. That is one of the reasons why, even in these difficult times for the public finances, the Government have prioritised investment in our rail network.

As my hon. Friend has generously highlighted, the programme of capacity expansion to which we are committed is bigger than anything seen since the Victorian era, and a number of the most ambitious and important changes will be taking place in the Great Western franchise area, which serves my hon. Friend’s constituents in Reading.

Our programme includes a new fleet of IEP—intercity express programme— electric and bi-mode trains built in Newton Aycliffe in County Durham; electrification of the lines linking Paddington and Bristol, Cardiff, Oxford and Newbury; upgrades to signalling and train operating systems; provision of an electric suburban fleet; a massive redevelopment of Reading station; Crossrail infrastructure works and rolling stock introduction, including improvements to Paddington; and, last but not least, redoubling the Swindon to Kemble line. All that is on top of the current programme that is delivering the 48 carriages that will benefit the Great Western franchise. I am pleased to say that, as part of that roll-out, two additional three-car trains—class 150s—started in full service on the Reading to Basingstoke line just last week. This releases turbo trains from that route to strengthen the Paddington services and provides a capacity uplift in its own right on the Basingstoke line.

My hon. Friend focused his remarks, among other things, on the reporting system and its relation to crowding levels. We are in the process of re-letting the west coast franchise—and that new franchise will require the franchisee to use automatic passenger count equipment. We will, of course, consider similar provisions for future franchises. I note my hon. Friend’s particular concerns about the regularity of reporting. Franchisees have generally been asked to supply data for at least each quarter, but I acknowledge that modern technology means that more frequent reporting is becoming a more viable option, to which we will give careful consideration. By collecting better data about demand and usage than is available now, we have an opportunity to transform and improve planning in the rail industry.

We are at the start of an intense retendering programme for rail franchising. Through this, we plan to deliver the longer franchises, for which my hon. Friend rightly called, including on the Great Western network. We also propose to deliver greater flexibility to respond to customer demand in a commercial way, within a framework set by the franchise that protects key outcomes for passengers, taxpayers and the economy. That means giving operators more freedom to design service patterns and stepping back from the system that arose under the previous Government whereby timetables were effectively set in Whitehall. We want to see more decision-making power transferred to people who are closer to the front line. I believe that this is in tune with some of my hon. Friend’s remarks, and that these changes will lead to a better match of capacity and demand and better outcomes for passengers.

On 22 December 2011, the Department for Transport launched a consultation on the new Great Western franchise. We will ask bidders to consider how they would strengthen the reliability of services and improve stations and trains. Current franchises already include train planning requirements. For example, we have issued the invitation to tender for the west coast franchise, including obligations on planning timetables and stock in order to minimise crowding on short commuter flows —generally under 20 minutes—and to give passengers a seat on longer journeys. In cases where crowding cannot be eliminated, the new west coast franchise would require the operator to ensure the impact is not unduly concentrated on a single route or service. Every franchise has its own set of circumstances, and the consultation on Great Western explicitly asks for views on how we can best address overcrowding issues on its routes.

Of course, we have to acknowledge that there are many places on the UK network where using existing resources more effectively and efficiently will not be enough to meet the demand for rail. In some cases, crowding problems can be realistically addressed only with infrastructure improvements. It is not impossible for these to be delivered as part of a franchise agreement, particularly smaller-scale projects, and we have included provisions in the west coast ITT to make it easier and to encourage it. Medium and large upgrades will generally require Network Rail or Government funding, which brings me back to the major programme of investment to which I have already referred. Responding to concerns about crowding effectively requires both Government and train operators to play their part.

My hon. Friend made some good points about ticketing. As the number of passengers using our railways each year continues to grow, it is more important than ever for us to get fares and ticketing right. As my hon. Friend said, that was considered in the McNulty review. Our vision of a modern customer-focused railway includes smarter and more transparent fares and ticketing. We want buying a ticket to be a straightforward transaction, not an obstacle course, and we want passengers to be able to choose from a range of fares that are designed to meet their needs without having to understand every nuance of the underlying fares structure.

Like my hon. Friend, I recognise the benefits of smart ticketing. I acknowledge that the technology presents the possibility of more flexible season tickets, and we intend to explore it as part of our forthcoming fares review. The season ticket model has remained largely unchanged for many years, and I agree that we need to update it to reflect modern patterns of work and travel and the fact that increasing numbers of people no longer work the traditional nine-to-five, Monday-to-Friday week.

Rail ticketing can contribute to our efforts to support a more flexible working culture, as well as removing barriers to entry to the workplace by, for example, women who are weighing up the costs and benefits of returning to work after having children and are considering part-time work. The smart ticketing technology that is now becoming available could deliver a range of new types of ticket, with the potential to transform the way in which we think about and pay for rail travel. I assure my hon. Friend that the Government take the wider roll-out of smart ticketing very seriously. Indeed, that is partly why £45 million was recently committed to the development of flexible smarter ticketing on routes in the south-east.

My hon. Friend mentioned the Chiltern business zone product that runs on some services between London and Birmingham. That is the sort of passenger-focused innovation that we want train operators to consider when operating within the framework of the longer, more flexible franchise agreements that we will be rolling out as part of our reform of the franchising programme, because we want them to encourage more passengers on to trains when they have the capacity to get the best use out of rolling stock.

As I have said countless times at this Dispatch Box, I consider it vital for the cost of running the railways to come down. I agree with my hon. Friend that that is essential if we are to respond effectively to the concern expressed by passengers about the level of fares, in his constituency and in many other parts of the country. It is also the only viable means of delivering an end to above-inflation fare rises. It is fair for passengers to contribute to the cost of running the railways and to the coalition’s massive rail improvement programme, and the fares that they pay are making an important contribution to that; but neither fare payers nor taxpayers should have to pay for industry inefficiency.

In line with the recommendations in the McNulty report, we believe it is crucial for those responsible for track and for trains to work more closely together. A crucial part of delivering cost reductions is ensuring that both sides of the rail industry are subjected to strong shared incentives to reduce costs and improve services, and we will therefore expect train operators to deliver closer working relationships and alliances with Network Rail as part of wider efforts to deliver the savings that the McNulty study concluded were possible.

As my hon. Friend anticipated, we will shortly publish a policy statement—in the form of a Command Paper—on rail reform, reducing the cost of the railways, and improving services for passengers. It will set out a strategy for an affordable. sustainable, safe and high-quality railway that will deliver a better deal for both taxpayers and fare payers. I encourage Members to read the Command Paper when it is published, and to respond to the fares and ticketing consultation that we will be launching shortly. It is important that the concerns of their constituents are heard loud and clear as we take forward the crucial process of not only improving and expanding capacity on our railways, but reforming them in order to deliver lower running costs and better services for passengers.

Question put and agreed to.