Cost of Living

Debate between Theresa Villiers and Maria Eagle

Wednesday 16th May 2012 Commons Chamber

[Maria Eagle]

My hon. Friend is correct, of course. The Government have said that those who are out of work should be willing to travel for up to 90 minutes to take up a reasonable job offer or lose their jobseeker’s allowance. The Secretary of State for Work and Pensions has said:

“The truth is there are jobs. They may not be absolutely in the town you are living in. They may be in a neighbouring town…We need to recognise the jobs often don’t come to you. Sometimes you need to go to the jobs.”

Not only is he out of touch about the extent to which there are actually jobs, but he seems to have no concept of the cost of travel under his Government. Those on the minimum wage will have take-home pay of just over £10,000 a year, but a season ticket for the 90-minute journey between Newark Northgate and King’s Cross would cost more than £8,000. Under the Government’s policy, therefore, they expect someone to spend up to 77% of their take-home pay just to get to work. Coming into London from Braintree would cost someone in a minimum wage job 46% of their take-home pay. There are other examples. The cost of transport is making it harder for people to take up jobs or to stay in education, as my hon. Friend the Member for Sedgefield made clear in the examples that he gave.

Of course we need to bring down the deficit, but we need the right balance between a plan for reducing spending and a plan for jobs and growth. That is why I have supported more than two thirds of the Government’s cuts to transport spending—difficult cuts, which we would have had to make in government as well, to the Highways Agency, Transport for London and major transport schemes. However, £6 billion is two thirds of the reductions in expenditure planned across this Parliament. We would not have cut support for rail and local transport services so far or so fast. We could then have relentlessly focused on keeping down the cost of transport, helping households through tough times and not adding needlessly to the pressures that they face. We would have held fare rises at 1% above inflation during this Parliament, and without the need to cut one penny from the investment in the network that the Government are rightly taking forward. We could also have protected local bus services and kept fares down.

Of course, Ministers are so out of touch that they claim that those fare rises and cuts to services are not actually happening. In his autumn statement, the Chancellor claimed that he had succeeded in keeping increases in rail fares at just 1% above inflation. He said:

“RPI plus 3% is too much. The Government will fund a reduction in the increase to RPI plus 1%...It will help the millions of people who use our trains.”—[Official Report, 29 November 2011; Vol. 536, c. 810.]

Why did fares rise in January by as much as 11% on some commuter routes? What the Chancellor perhaps forgot to mention was that the Transport Secretary—not this one, but her predecessor—had given back to the train companies the right to add up to a further 5% increase on top of that cap. [Interruption.] That was banned when we were in government once times were getting tough. By not cutting the rail budget so far and so fast, we would set the minimum—[Interruption.] If the Minister of State, Department for Transport, the right hon. Member for Chipping Barnet (Mrs Villiers) wants to intervene, perhaps she would like to do so properly instead of chuntering from a sedentary position. By not cutting the rail budget so far and so fast, we would not only set the maximum fare rise at 1%—

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

The point I was making is that if the hon. Lady has such a problem with fares basket flexibility, why are her Labour colleagues in Cardiff still applying it in Wales?

Oral Answers to Questions

Debate between Theresa Villiers and Maria Eagle

Thursday 19th April 2012 Commons Chamber

[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.

Oral Answers to Questions

Debate between Theresa Villiers and Maria Eagle

Thursday 23rd February 2012 Commons Chamber

[Mrs Villiers]

The hon. Gentleman raises very important issues, and the concerns that he expresses are one reason the Chancellor secured the funding to ensure that the 2012 increase would be just RPI plus 1%. We recognise, however, that it is vital that we get the cost of running the railways down, because that is the long-term, sustainable way to respond to passengers’ concerns about the level of fares.

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

I, too, welcome the right hon. Lady back to her place.

Last month The Daily Telegraph was briefed that future fare rises are “not set in stone” and are “under constant review.” Will the Minister of State therefore tell the House whether she still intends to allow train companies to hike fares by as much as 8% above inflation in 2013 and in 2014, and has she taken any decisions about fare rises in the years after that?

[Mrs Villiers]

As I said in my opening answer on this question, the current assumption is based on RPI plus 3%, but we will keep those matters under review, as we did in relation to 2012, to see whether further funding can be secured to opt for a different approach. In reality, however, it is crucial that we get the costs of running the railways down—costs that spiralled during the Labour Government. They failed to respond to the problem and were severely criticised by their own Labour-dominated Select Committee at the time for not doing anything serious about rail fares. We are going to get the cost of the railways down so that we get better value for money for passengers.

[Maria Eagle]

The Minister seems to be saying one thing to the train companies and another to passengers. I have with me the invitation to tender for the west coast main line, which promises bidders that they can increase fares by up to 8% above inflation next year, by up to 8% above inflation the year after that and, then, by up to 6% above inflation every year for the rest of the entire 15-year franchise. So it seems that the decision has been taken. When is the Minister of State going to stand up to those vested interests and stand up for passengers?

[Mrs Villiers]

The shadow Secretary of State has resorted to the same old stuff about the fares basket flexibility that the leader of her party got completely wrong at Prime Minister’s questions. It was a fares basket flexibility that Labour suspended for one year and we introduced, and the Labour Administration in Cardiff are still using that flexibility. It is entirely disingenuous for the shadow Secretary of State to get up and talk about—

Rail Fares

Debate between Theresa Villiers and Maria Eagle

Wednesday 11th January 2012 Commons Chamber

[Maria Eagle]

If the hon. Gentleman will allow me to finish answering the last intervention, I might get around to giving way to him. As the previous Labour Transport Secretary made clear, we would not have given back to train operating companies the power to fiddle the fares by hiking them by more than the cap on the most profitable routes and getting away with it by introducing much lower increases on the routes that do not rake in the cash. That is something we put a stop to in government once times got tough.

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

Will the hon. Lady give way?

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

Will my hon. Friend give way?

[Maria Eagle]

I will give way to the Minister, who I expect will be winding up the debate, and then to my hon. Friend.

[Mrs Villiers]

The hon. Lady claims that Lord Adonis, a previous Transport Minister, would have continued the suspension of the fares basket, but the reality is that he did not renegotiate that with the train operators; he negotiated for a one-year contractual suspension. If he had intended to carry on with that, he would have negotiated the period into the franchises, but he chose not to.

[Maria Eagle]

The right hon. Lady is wrong to say that there was no intention to continue with that. She can try to rewrite our policy as much as she wishes, but my noble Friend Lord Adonis made it perfectly clear in oral and written evidence to the Transport Committee that the ban on flex would continue into subsequent years, and that remains our policy.

--- Later in debate ---

[Maria Eagle]

I am aware of that and thank my hon. Friend for making that point. At least Labour’s candidate understands how hard it is for ordinary, hard-pressed commuters to afford the kind of fare rises that the Government are not only allowing, but promoting. It is no good Ministers hiding behind the deficit, because this is not a simple case of bringing additional money into the Treasury; it is also about bringing additional money into the profits of private train companies. The National Audit Office report on the Department for Transport’s spending settlement warned:

“There is a risk that the benefit of the resulting increase in passenger revenues will not be passed on to taxpayers fully, but will also result in increased train operating company profits.”

High fares equal increased profits in an industry that relies on subsidies of more than £4 billion of taxpayers’ money every year. It is no wonder passengers in Britain are paying three and a half times more for their rail tickets than those in France, Germany and Holland, all countries that do not have the costly and fragmented rail industry structure that is the legacy of the Tories’ botched privatisation of our railway industry. The French, German and Dutch state railways are so successful that they are now bidding for and winning franchises to run rail services in Britain. The Government are step by step nationalising our rail services—it is just that it is not our nation. The profits will be helping to keep down fares in France, Germany and Holland for their own domestic passengers. It is no wonder that fares are so high under our broken system.

Therefore, we would enforce a strict cap on fare rises, but I believe that we need to go further and make fares fairer. Because the system has lost all credibility, passengers feel ripped off and know that they are being ripped off. They feel that the system does not work in their interests and that it is designed to catch them out. That is what I have been told by passengers as I have travelled across the country over the past year. In addition to getting spiralling rail fares under control, here are five other ideas that passengers have said would make a real difference. First, why is there no single national definition of peak time? Why are train companies allowed to set different rules so that passengers have to know precisely which company they are travelling with or risk facing a fine for travelling on the right ticket at the wrong time? Why are the companies allowed to chop and change peak time, stretching it out simply to hike their profits?

[Mrs Villiers]

rose—

Aviation Industry

Debate between Theresa Villiers and Maria Eagle

Tuesday 15th November 2011 Westminster Hall

[Mrs Villiers]

I am happy to offer my congratulations on that. Contrary to the allegation that the Government have created a policy vacuum, we have a range of initiatives designed to make our airports better—our priority is to make them better, rather than bigger. We are legislating for a much more passenger-focused system of regulation. We are improving air space management through the Future Airspace Strategy in the Single European Sky programme, which is already delivering real benefits in the UK and Ireland. We are changing the way aviation security is regulated to enable the industry to deliver the same high standards in security, but in a more passenger-focused and more hassle-free way.

Our south-east airport taskforce also included proposals to improve resilience and address delays. As a result, we are trialling the tactical use of greater operational freedoms at Heathrow. This is very sensitive, because those freedoms mean that occasionally there will be some incursions into the respite period, with occasional use of both runways for departures, or, occasionally, use of both runways for arrivals. However, I emphasise that that is not mixed mode and the Government remain committed to runway alternation and the benefits it brings. Very careful consideration will be given to the impact of the trial on local communities. I emphasise that the measures being trialled are to be used only to improve resilience, and prevent or recover from disruption, and not to increase capacity, which remains capped at current levels.

We have published our scoping document, setting out the issues to consider for the future of aviation. We know how crucial it is to have a successful regional airport sector, as hon. Members have highlighted today. We will look at ways to harness spare capacity to support economic growth and help to relieve crowding in the south-east. High-speed rail has strong potential to provide an alternative to thousands of domestic and short-haul flights. HS2 to Manchester and Leeds will deliver a three and a half hour journey time between London and Scottish destinations, providing a viable alternative to thousands of Scottish flights.

[Maria Eagle]

Will the Minister give way?

[Mrs Villiers]

I am sorry, but I really do not have the time. We accept that the international nature of aviation, as has been said, means solutions are often best delivered at a multilateral level. That is why we are working with the International Civil Aviation Organisation towards agreement on emissions and on noise issues. That is why we have worked very hard on the inclusion of aviation in the emissions trading scheme. We will publish our draft strategy in spring next year for public consultation, with a final strategy due in 2013. We want to see Britain, and British companies, spearheading the global debate on greener air travel and shaping a low-emission aviation sector of the future. We need to work with the industry to find new ways of decarbonising air travel, boosting investment in low-carbon technologies and fuels, and enabling the aviation sector to generate the headroom it needs to grow in a sustainable and successful way. Our world-beating aerospace sector will play a vital role in that. The challenge creates great opportunities for that world-beating sector.

We want to open a new chapter on the aviation debate. We are interested in working on a cross-party basis, as has been discussed today. Our goal is to move away from the polarised opinions that have dominated the discussion in the past. We want to develop a broader consensus for the change we need to deliver a flourishing air transport sector that can support economic growth, while addressing its local environmental impacts and playing its full part in combating climate change.

Train-building Industry

Debate between Theresa Villiers and Maria Eagle

Tuesday 12th July 2011 Westminster Hall

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

It is a pleasure to serve under your chairmanship, Mr Gale. I congratulate my hon. Friend the Member for Amber Valley (Nigel Mills) on securing a debate on this important issue. I welcome the contributions that he and other right hon. and hon. Members have made on this issue, which is important for Derby and the UK. I emphasise that the Government fully understand the concern that is felt. We, too, deeply regret the job losses that are under way in Derby, and we, too, are determined to do what we can to help Derby and Bombardier.

We recognise that Bombardier was hugely disappointed not be made the preferred bidder for Thameslink, but the procurement was set up and designed by the previous Government. Although we were left to open the envelope on preferred-bidder status, they set the criteria against which bids had to be judged. We are legally bound by the criteria set by Labour at the beginning of the process.

We are also legally bound by European law to judge bids on a completely blind basis. Under EU law, domestic and overseas suppliers must be judged impartially and on a wholly equal footing. Against the published criteria we inherited, the Siemens bid clearly represented better value for money.

We cannot make the location for the proposed manufacturing part of the criteria. Contrary to what the shadow Secretary of State, the hon. Member for Garston and Halewood (Maria Eagle), said, it was not a criterion for preferred-bidder status in the IEP contract that Hitachi set up a factory at Newton Aycliffe, although it has chosen to do so.

In response to a number of points made by different hon. Members, I should say that we could not simply rip up the procurement started by our predecessors. That would leave the Government at risk of facing damages in the courts and lengthen the delivery of Thameslink, which, as I have said, and as hon. Members have acknowledged, was already running 16 years late when we inherited it from the previous Government. There was no legal way we could simply ignore the Siemens bid and hand the contract to Bombardier; it simply is not in our legal power to do that.

[Maria Eagle]

Is the Minister really saying she has no power in this matter? She is the Minister.

[Mrs Villiers]

I am saying that, as the Minister, I need to abide by the law and by our obligations under the European Communities Act 1972 and the treaty of Rome; I am afraid I have no choice in that. Going forward, we of course recognise the need to examine wider issues about whether the UK approaches the application of EU procurement rules in the right way and achieves the right balance of risk. Similarly, I agree with my hon. Friend the Member for Amber Valley that we need to see whether our approach is consistent with those used in other member states. That is why the issue will be considered as part of the Government’s growth review.

Oral Answers to Questions

Debate between Theresa Villiers and Maria Eagle

Thursday 10th March 2011 Commons Chamber

[Mrs Villiers]

I will certainly expect Network Rail to do all it can to minimise the disruption caused for passengers by the works under way on Thameslink and forthcoming works at major London termini. I will keep my hon. Friend’s proposal in mind, and I am happy to discuss it with Network Rail. I believe that he and I are meeting to discuss this soon.

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

Will the Minister of State rule out breaking up our national rail infrastructure and handing those vital assets to the private sector, creating in the south-east and across the country what has been described as a series of mini-Railtracks?

[Mrs Villiers]

The hon. Lady knows perfectly well that this Government have shown a major commitment to investment in our railways, but we expect the rail industry to rise to the challenge of reducing costs, which spiralled under her Government. For the sake of taxpayers and fare payers, the cost of running the railways needs to come down. We expect Sir Roy McNulty to come up with workable proposals for delivering that essential goal.

[Maria Eagle]

The whole House will have heard the Minister refuse to rule out a return to the days of Railtrack, with private profit, not safety in the interests of passengers, coming first. She is in danger of repeating the shambles of rail privatisation, so will she urge her right hon. Friend the Secretary of State to think again, step back from this ideologically driven plan to fracture our rail industry further, and abandon this recipe for disaster?

[Mrs Villiers]

The hon. Lady was a member of the Government who established the McNulty review to find out the answers to the very questions that she is asking, yet she wants me to rule out a range of options before Sir Roy McNulty has had a chance to report. This is a review that the Labour Government set up, and I think it makes sense to wait for Sir Roy’s report before making a decision.