(4 years, 6 months ago)
Commons ChamberI fully appreciate how strongly my hon. Friend’s constituents feel about that issue, as do mine in Barnet. We are giving local authorities additional powers through our Environment Bill to tackle fly-tipping. We have also already enhanced their powers to search and seize vehicles, which may be involved in this menace, and we have granted them power to issue fixed penalty notices, and I encourage them to use those powers.
I welcome the Minister’s answer, but I must tell her that landfill tax fraud is a multi-million pound business. From my experience in the north-east of England, where there is some good co-operation going on between various agencies, the problem is with HMRC, which will not investigate unless a certain threshold is hit. I asked for feedback on prosecutions in one high-profile case that was activated four years ago and found that, to date, nothing has happened.
That is one reason we are bringing together the relevant agencies in this new joint unit. They include HMRC, which is absolutely determined to crack down on tax fraud and evasion of all sorts. The right hon. Gentleman has his point on the record, and I am sure that the issue will be raised in the new joint unit.
(13 years, 3 months ago)
Commons ChamberI congratulate the hon. Member for Gateshead (Ian Mearns) on securing the debate and on his speech. I completely understand the concerns of those working at the Baron house call centre. It is clear that job losses are a very harsh blow to the people concerned. That is one of the reasons why the coalition Government are working so hard to try to create the right conditions for growth and the creation of new jobs.
Absolutely, in the north-east and right across the country.
Before responding to the hon. Member’s questions, I must first clarify and reiterate the relationship between the Government and the east coast main line operator. East Coast Main Line Ltd is wholly owned by Directly Operated Railways Ltd, which is, as he pointed out, owned by the Government. East Coast and DOR are companies registered under the Companies Act and operate in accordance with their own articles of association and governance. This provides a framework for the operation of the franchise as a free-standing entity in readiness for the return of the franchise to the private sector, a return that was envisaged by the previous Government as well as the current one.
I will explain the relationship between East Coast and the Secretary of State. The aim is for that relationship to replicate the arrangements for franchises elsewhere on the network in order to ensure that the principles of private sector operation are embraced and maintained. The reason for that approach is so that the Secretary of State is able to protect the value of the franchise and the taxpayer gets value for money when the franchise returns to the private sector.
If the Department or my right hon. Friend the Secretary of State were to start intervening in the way the operator runs East Coast, for example by overturning decisions based on commercial considerations, they might well have to answer for their decisions in front of the Public Accounts Committee. I am afraid that we do not believe it a viable option to intervene on the basis of political or non-commercial considerations, even if the Secretary of State were minded to do so.
On the threat that the Public Accounts Committee is going to question what the Minister does, may I just say as a former Minister that it can question anything a Minister does? So, that argument is a complete nonsense.
The Secretary of State is under a duty to safeguard the assets vested in the Department for Transport. The East Coast operation happens to be one of those assets, so it would be irresponsible to intervene and overturn the operator’s commercial decisions.
The people best placed to make the decision about what is best for the East Coast operation are the specialist practitioners who run East Coast Ltd, not Ministers, not Members. Those practitioners are the best people to make the best decision about what is in the interests of fare payers and taxpayers. East Coast is confident that the new arrangements will deliver better services for passengers and far better value for money.
As I will outline, should I get the opportunity, the options were fully explored in relation to continuing the relationship between the Baron house call centre and the East Coast operation, but it was found not to be viable in terms of value for money. If East Coast were to ignore value-for-money considerations, not only would the taxpayer suffer, but the fare payer would as well.
Has the right hon. Lady, as a Minister, looked at the case in detail, taking into account not only the value for money for East Coast, but the cost to the taxpayer in terms of redundancy payments directly from the company and the unemployment benefit that will have to be paid in the north-east of England? Has she actually looked at the case in detail?
I can assure the hon. Gentleman that East Coast has looked in detail at the viable option for the operation of the franchise.
(13 years, 11 months ago)
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My hon. Friend’s intervention is timely, as I am just about to come to that point. As he rightly says, Sir Andrew did make some points about the possible alternatives to the current IEP proposition.
In response to Sir Andrew Foster’s report, my right hon. Friend the Secretary of State for Transport announced that the Government would use the period up to the spending review to give further consideration to the future of the IEP. In accordance with Sir Andrew’s recommendations, the Government are reviewing all the credible options in light of value for money, affordability and their compatibility with the plans for further rail electrification. That means careful consideration of how the IEP proposal could be reduced in cost, and evaluating alternative ways of addressing the problem that the IEP was designed initially to solve—that is, how to address the problems surrounding the ageing high-speed train fleet. As my hon. Friend points out, the alternatives include the possibility of refurbishing and extending the life of the existing InterCity 125 rolling stock. In that regard, compliance with disability deadlines will be an important factor to bear in mind in the assessment.
Is the right hon. Lady suggesting that the north-east should once again get second best, while the constituency of the hon. Member for Crewe and Nantwich (Mr Timpson) is, I think, served by a line with brand new trains?
I am saying that we have to carry out a very careful assessment of what the right outcome is for this programme, and what the right way is to address the problem of the ageing InterCity 125 fleet. That is what the Government are doing at the moment.