Oral Answers to Questions

Debate between Theresa Villiers and Mark Lazarowicz

Thursday 23rd February 2012 Commons Chamber

[Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)]

2. How her Department will calculate the level of rail fares for services between Scotland and England in January (a) 2013 and (b) 2014.

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

The cap on regulated fares is calculated according to the formulae in franchise agreements. The current planning assumption, as set out in the 2010 spending review, is that the cap will increase by RPI plus 3% in January 2013 and in January 2014 for operators franchised by the Department for Transport. However, no final decision has been made.

[Mark Lazarowicz]

It is good to see the Minister in her place today, and I am sure that the whole House wishes her a speedy and full recovery from her accident.

As well as the RPI plus 3% increase proposed by the Government here, the Scottish Government are proposing RPI plus 3% increases in rail fares in Scotland and the potential removal of sleeper services and of cross-border services north of Edinburgh, so my constituents and many people in Scotland face a double whammy. How can we expect people to continue to move on to the railways when we are putting such obstacles in their way?

[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.

Rail Services from and to Scotland

Debate between Theresa Villiers and Mark Lazarowicz

Tuesday 20th December 2011 Westminster Hall

[Mrs Villiers]

I always have been, and continue to be, strongly supportive of a connection between HS2 and Heathrow. I am also strongly supportive of a thorough, evidence-based consideration of all the options on routes, which is exactly what the Secretary of State is undertaking. I imagine that, as we debate, she is probably poring over the detailed submissions summarising the consultation, which provide her with all the information that she needs to take a decision on whether to go ahead with the project as a whole, and, if so, on the best route. I am confident that she will take the right decision. As I have said, the shadow Minister will have to wait just a little longer to hear that. He well knows that the coalition’s plans and proposals include a direct link to Heathrow in phase 2.

On the hybrid Bill, again, as we have had many opportunities to debate, the Government have concluded that the best way to take HS2 forward as efficiently and rapidly as possible is by two separate hybrid Bills—one for the first phase in the west midlands and one for the second phase to Manchester and Leeds. There are pros and cons about the procedures either way, but changing course now and suddenly deciding on a hybrid Bill to accommodate both phases might slow down the project. I think it would be risky. What is important is that once the Secretary of State has made a decision we should take whatever steps are needed to press ahead promptly with implementing it. I hope that the cross-party consensus that the shadow Minister has mentioned repeatedly will prove useful in proceeding with high-speed rail if that is the outcome of the Secretary of State’s deliberations.

Of course, the goal set out in the coalition agreement is to deliver a genuinely national high-speed rail network. It is therefore a timely moment to consider the impact on Scotland. Although the Y network that we propose would bring important benefits to Scottish passengers and the Scottish economy, because of the journey time savings that we have talked about and the relief of capacity pressure that the shadow Minister referred to, we still recognise the strong support for extending the proposed new high-speed line north to Scotland in the future.

The Government share the aspiration of the hon. Member for Edinburgh North and Leith for high-speed rail one day to extend north of the border all the way to Edinburgh and Glasgow. He will appreciate that, constitutionally, the Scottish Government have responsibility for the rail infrastructure north of the border, including funding it. However, if we go ahead with HS2, phases 1 and 2, we will certainly expect to work with the Scottish Government on identifying and considering options for expanding the proposed high-speed network in the future. I assure him that there is no need to wait for completion of either phase before serious work is started in relation to potential further expansion of the network.

[Mark Lazarowicz]

I welcome the broad commitment that the right hon. Lady has given, but she will understand that although the Y-shaped route will clearly bring benefits to Scotland, because of the effect on rail speeds and capacity further south, it will by definition not help with capacity once the end of the Y line is reached and the journey continues on existing lines to Edinburgh and Glasgow. If anything, there might be capacity problems, because of extra trains on those lines. Can the right hon. Lady give any indication of the type of discussions that are going on with the Scottish Government? I get the impression that they are something that may happen one day, as she said; but we want more of a commitment than that. We want an indication of what work is going on now, and a commitment that preparation should start now.

[Mrs Villiers]

I assure the hon. Gentleman that officials from HS2 and the Department for Transport have regular discussions with Transport Scotland about high-speed rail. I have discussed it with Scottish Ministers on several occasions. The Secretary of State for Defence also discussed it, when he was Transport Secretary, with Scottish Ministers. Indeed, HS2 is already considering options further to reduce journey times to Edinburgh and Glasgow. We recognise the enthusiasm for further work on expanding the proposed high-speed rail network. As I have said, we share the aspiration of establishing a genuinely national network, which must of course include Scotland.

--- Later in debate ---

[Mrs Villiers]

I think that that would be unwise, because the Government take devolution very seriously. We are talking about rail services provided in Scotland. It is certainly not at all unreasonable for the Scottish Government to wish to have an input in how those services are run. At this stage, it would be inappropriate for the coalition to start dictating the outcome of a consultation on the ScotRail franchise. I will therefore confine my remarks to saying that we would have reservations about a route down which we did not chose to go in relation to the IEP, but we will listen to the Scottish Government if they choose to pursue that further.

[Mark Lazarowicz]

I am not asking the Minister to veto the Scottish Government’s proposals, if they go along the line of a Scottish franchise that takes on board the services north of Edinburgh, because I accept that devolution exists and that the Scottish Government have the right to put forward their views. My point is that we are discussing UK services as well, and I ask her to take that on board. If the Scottish Government decide on such proposals, I hope that she will ask them to ensure that the new franchisee will still be required to maintain cross-border services.

[Mrs Villiers]

I certainly take those points on board, but closing down the debate at this stage would not be appropriate, because it would be undermining, and we respect the devolution settlement and want to pursue an agenda of mutual respect. We would consider such proposals from the Scottish Government if they chose to go ahead. As I said, we need to weigh carefully all the appropriate evidence. If the proposal were indeed motivated by some political separatist agenda, that would be a real concern. A final decision will need to be made in time for the publication of the invitation to tender for the next east coast franchise in the autumn next year.

The shadow Minister mentioned performance on the east coast line. It has certainly been disappointing; the performance of both the train operator and Network Rail has been below the levels expected. Cable theft has had a major effect, and we are discussing co-ordinated action throughout the Government, with a view possibly to increase the punishment for cable thieves and to clamp down on rogue elements of the scrap-metal industry.

The west coast main line, meanwhile, has also experienced a performance dip in recent months, mainly owing to track faults and other infrastructure delays. I am afraid that performance on the two routes has contributed to the Office of Rail Regulation’s recent warning to Network Rail, set out in a letter of 19 December, that the company is in danger of breaching its licence conditions for the long-distance sector and will miss its regulatory targets for the sector this year. The ORR made it clear that it expects Network Rail to submit robust plans for improving performance on key routes such as those on the east and west coasts. The Government, too, believe that performance needs to improve, and we are fully supportive of the action that the ORR has taken.

Concerns about fares have been expressed. The fares that people pay are of course making an essential contribution to the massive rail upgrade programme that is being delivered and to which I referred at the start of my remarks. Some cheap fares for cross-border services are available to those who can book ahead and commit to a specific service, but we recognise that it is not always possible to do that. We understand the concern about rail fares and the pressure that they put on family budgets. That is why, in the Chancellor’s autumn statement, he announced that funding had been secured to cancel the proposed increase of the retail prices index plus 3% planned for next year and to revert to an RPI plus 1% increase for the fares coming into effect in January. That covers cross-border services on the east and west coast main lines, as well as others in England.

If we are to provide a lasting solution to passenger concern about fares, however, it is vital to get the cost of running the railways down. Sir Roy McNulty’s report, referred to briefly in the debate, set out a path that he believed would achieve significant savings without cuts in service provision. At the heart of his recommendations are measures to align incentives between Network Rail and the train operators. Put simply, we need to ensure that the two sides of the rail industry, track and train, work better together, with a strong shared incentive to get costs down and to improve outcomes for passengers. We are determined to deliver effective savings on the railway, so that we can deliver the improvements that passengers want and respond to their concerns on value for money.

I am grateful to hon. Members for listening with such patience to my remarks on cross-border rail services this afternoon.

High Speed Rail

Debate between Theresa Villiers and Mark Lazarowicz

Wednesday 9th June 2010 Westminster Hall

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

It is a pleasure to serve under your chairmanship, Mr. Betts. I join others in congratulating the hon. Member for Edinburgh North and Leith (Mark Lazarowicz) on securing a debate on this important topic. For many of the reasons that he so articulately set out in opening the debate, the issue is significant for the future of our transport system, our economy and our environment,

I can assure hon. Members that high speed rail plays a core role in the new Government’s vision for the future of travel in the United Kingdom. I am therefore grateful for the strong support that has been displayed across the parties in the debate, and particularly by the new shadow Minister, the hon. Member for Glasgow North East (Mr Bain). That support has been reflected in many speeches this morning, and I welcome the contributions from not only the hon. Member for Edinburgh North and Leith, but from the hon. Member for Leicester South (Sir Peter Soulsby), my hon. Friend the Member for Banbury (Tony Baldry) and the hon. Members for Solihull (Lorely Burt) and for Carmarthen East and Dinefwr (Jonathan Edwards). I shall address a number of the issues that they raised. As well as supporting high speed rail, my hon. Friend the Member for Banbury reflected on some of the issues for local communities that might be affected once a route is chosen. I will come to that later.

The Conservatives championed high speed rail in opposition. We transformed debate on the issue in October 2008, when we pledged to start the long process of building a national network. At the time, the Labour Government had dismissed high speed rail as an option, and their 30-year strategy for the railways contained no place for it. Nevertheless, I very much welcome the change of heart that occurred after our announcement and with the appointment of Lord Adonis. I echo the comments of the hon. Member for Glasgow North East in welcoming and paying tribute to the work that Lord Adonis did on the issue.

The change of heart from the previous Government signalled the emergence of a broader cross-party consensus on the principle that high speed rail is essential for Britain’s transport system. The new Government’s support for high speed rail was clearly and explicitly included in the coalition agreement. Our programme for government includes the creation of a high speed rail network. Our ambition is the creation of a genuinely national high speed network, although we recognise that that will have to be achieved in phases over a number of years. However, in answer to the questions about that national network, let me say that a genuinely national network of course embraces destinations in the east midlands, Scotland and Wales—the areas that have been specifically highlighted this morning.

Let me take this opportunity to emphasise that the Government’s ambitions for high speed rail do not stop at Birmingham. Although the previous Administration had a change of heart on high speed rail, their focus was still just on detailed plans for a route to Birmingham. It is manifestly clear that we will not reap the full benefits of high speed rail unless we go much further than the west midlands, important though a link to the west midlands obviously is. We want to make progress as rapidly as possible towards the creation of a national network that connects to the rest of Europe via the channel tunnel.

In opposition, both coalition partners emphasised the importance of taking high speed rail to Scotland. It is clear in the devolution settlement that the Scottish Government are responsible for rail infrastructure north of the border. Delivering cross-border high speed rail services and a cross-border high speed rail line would therefore obviously require close co-operation and careful joint working between Holyrood and Westminster on a range of issues, including, of course, funding. That is why, in my role in opposition, I visited Scotland for constructive talks with John Swinney on how that co-operation might go forward. There are extensive and close contacts between the Department for Transport and its counterparts in Scotland. The Secretary of State also looks forward to working with his Scottish counterpart in developing a high speed rail strategy that incorporates Scotland.

Issues relating to the timetable were at the heart of the questions from the hon. Member for Edinburgh North and Leith. The Secretary of State is considering the timetable set out by HS2 Ltd. He is also considering questions relating to the integration of Heathrow into the high speed rail network, which I will come to in due course. He will report to Parliament in due course on the timetable and on how things will be taken forward. However, the intention is to go forward with the consultation as promptly as possible, after that statement to Parliament.

The Government intend to present a hybrid Bill during this Parliament. We also intend to start enabling work by 2015. That is a somewhat more aggressive timetable than that set by the previous Government, but we are determined—the hon. Member for Edinburgh North and Leith questioned me on this—to take the process forward promptly. Further work is already under way on lines beyond Birmingham. We will also continue to assess the appropriate delivery vehicles.

[Mark Lazarowicz]

I thank the Minister for her answers so far, but may I be clear about one point? She said that she envisaged work starting in 2015, but what kind of work does she mean? Such work would be welcome, but 2015 is quite soon, so perhaps she will elucidate.

[Mrs Villiers]

As I said, the intention is for enabling work to start in 2015. Given that there will be a detailed and expansive consultation process before decisions are made on a route, it would not be appropriate or realistic for me to say exactly what type of work we would intend to start by 2015 and in what locations.