A14 (Tolling Proposals)

Baroness Coffey Excerpts

Wednesday 16th October 2013 Westminster Hall

[Dr Thérèse Coffey (Suffolk Coastal) (Con)]

It is a great pleasure to have secured this debate. I welcome the Minister to his new role. If he is as adept in this role as he was when performing his former duties, we will have a terrific roads Minister. He has had a baptism of fire, having already done two 90-minute debates yesterday, but I am sure he is coping admirably.

The A14 is a strategic route for UK plc. It is heavily congested in certain areas, and upgrading it is a national priority. The Government and councils are planning to invest £1.5 billion in upgrading the A14 and also the A1. However, the Government have singled out through-users of the A14 for tolling even though no other major road improvement scheme planned for the next 10 years is to be tolled. There is a risk that that will effectively amount to a tax on businesses in East Anglia—bad news for one of UK plc’s leading growth areas.

The A14 is a key route for traffic between the UK’s largest container port, Felixstowe, and the midlands. Its importance is recognised in its status as a trans-European transport network, or TEN-T. It also serves commuters to the city of Cambridge, home to the world-famous science park, which is a fast-growing economic hub. In the infrastructure statement in June, the Government recognised the importance of the A14 and announced that the start date for the work would be brought forward two years, to 2016—a decision that I and many others greatly welcome.

The infrastructure statement included 24 other road upgrades, which the Government will fund in their entirety. I am proud that the coalition Government are investing so heavily in infrastructure, especially since the previous Government, frankly, did not do enough of that. However, none of those 24 other routes will be co-financed by tolling. Roads supporting other economic hubs and routes with significant increases in capacity will enjoy fully funded upgrades, including the M25 improvements at Tilbury, the A1 in Yorkshire and, indeed, the proposed A1 from Newcastle to Scotland. It was suggested that the £1 billion M4 relief road in Wales would be subject to tolls, but that was ruled out very quickly—almost within 24 hours. Singling out the A14 for tolling appears arbitrary and somewhat unfair.

I represent the constituency of Suffolk Coastal, which includes the port of Felixstowe. However, this is not simply an issue of the potential threat to that port, which competes against many others along the south and east coasts. Tolling the A14 will have a wider impact on many businesses in Suffolk, Norfolk, north Essex and Cambridgeshire. It is therefore no wonder that business organisations and local enterprise partnerships in those areas have come out against the toll.

Two toll-free alternative routes are being offered for all traffic, although each will add considerable distance and time to journeys. The existing trunked A14 is to be de-trunked and key infrastructure is to be removed, so capacity is being removed. That is in stark contrast to the only other tolled trunk road in the country, the M6 toll, which offered a genuine new road.

The proposals also do not reflect the fact that at the point of proposed enhancement, between Cambridge and Huntingdon, HGVs from the port of Felixstowe currently make up just 3% of traffic and are dwarfed in number by local commuters. I am afraid that the perception in Suffolk is that East Anglian businesses will end up paying for easing congestion for Cambridge commuters.

Considerable effort has been made to shift more freight on to rail. The Government are helping with that, and I welcome their investment in the Ipswich chord and the work to be done at Ely junction, which will really help efforts to increase the amount of freight moving from road to rail. European funding available to TEN-T projects has also been secured for those projects. However, I am not aware that any EU funding has yet been secured for the proposed A14 enhancement. I would like to hear from the Minister what plans there are to secure such funding.

I shall go through some of the key stages of the proposal. When we looked at the consultation, we were disappointed that the Highways Agency refused to hold a consultation meeting in Suffolk. All the meetings were held in Cambridgeshire, even though there is reference after reference in the consultation document about, in effect, forcing HGVs on to the trunked road by making sure that that was the easiest route to use and making other routes quite difficult to use so that businesses would end up using the tolled roads. The Highways Agency made a bad mistake there, which I hope it does not repeat.

The solution in the consultation removes the existing A14, including demolishing the A14 bridge, therefore reducing road capacity. I would like the Minister to explain why the parliamentary answer given to me by his predecessor, the Under-Secretary of State for Transport, my hon. Friend the Member for Wimbledon (Stephen Hammond), talks about increasing capacity when it feels as if capacity is being reduced.

I mentioned the issues for Suffolk Coastal and the port of Felixstowe. One issue for local haulage businesses relates to DP World, just up the road at Tilbury. Improvements are being planned to junction 30 of the M25, which is close to that port. It is planned that those improvements will be paid for entirely by the taxpayer. Although I am convinced that the magnificent port of Felixstowe will continue to invest and to compete with DP World, imposing tolling charges on one of its key routes adds additional costs for customers and hauliers. There is a real risk, which does not seem to have been taken into account, that container lorries will simply divert to the Al and the M25 at the expense of Felixstowe. That is certainly bad news for the port of Felixstowe and supporting businesses, but it is also bad news for UK plc.

It has been suggested that a tolling element is required to help to pay for all these infrastructure changes, but there has been no indication of how long the tolls will be imposed for. Will it simply be for the financing of the project? I received a written answer suggesting that the anticipated revenue is £30 million per year, but there has been no indication of how long tolling will last.

Tolling has been suggested for only one part of the road, the new A14 carriageway, which is the bypass around Huntingdon. The project has been designed specifically to force through traffic on to the tolled road. However, no charges are planned for the brand-new local roads that will be built or for the enhanced A1.

It seems contradictory to single out that one stretch of the A14, as the existing A14 is rerouted and de-trunked, when the A1, which will also be significantly improved, will not be tolled. The Highways Agency suggests that de-trunking the A14 addresses the Department for Transport’s ambition to place the right vehicles on the right roads, which suggests that the DFT is, in effect, forcing traffic on to the toll road.

The two non-tolled alternatives for HGVs in the consultation will push a lot of traffic on to the A428 and the A1M. Quite a number of hauliers are already starting to use the alternatives, as we know. There is a risk that the toll will have the unintended consequence that we see considerably more traffic using that route. We will end up in a situation in which people in St Neots are going nuts about how much traffic is going through their town. The situation could be even worse for St Ives, a pleasant little market town, as the other proposed alternative is to go through St Ives and then around the edge of Huntingdon. I hope the Department and the Minister are aware of those possible unintended consequences.

[Peter Aldous (Waveney) (Con)]

I congratulate my hon. Friend on securing the debate. She is making a compelling case.

I was born in Suffolk. I have lived there my whole life and I have worked there for much of it. In that time, I have witnessed a dramatic growth in the logistics industry, based on the port of Felixstowe and mostly located along the A14 corridor. Does my hon. Friend agree that proposals such as this could have a significant negative impact on the logistics industry in Suffolk and on the Suffolk economy as a whole? Does she also agree that the Department for Transport needs to look again at this proposal and to consult properly with Suffolk businesses and Suffolk people, and that, if there is to be a toll road, there should also be a realistic alternative, although, ideally, the A14 should not be tolled at all?

[Dr Coffey]

I support my hon. Friend’s sentiments. The wider impact does not seem to have been assessed. In fact, there appears to be an assumption in the Government, which I think is wrong, that demand for using the A14 is completely inelastic to the toll. In fact, as the Department will know, there are basically two types of hauliers: first, those that definitely need to arrive on time; and secondly, those for whom cash flow is key. Adding to the cost of coming in and out of Suffolk and other parts of East Anglia creates a risk to our economy. This is an issue not just for Felixstowe, but for other parts of Ipswich, for Bury St Edmunds and for Haverhill, as well as for Lowestoft, which is in the constituency of my hon. Friend.

[Mr David Ruffley (Bury St Edmunds) (Con)]

I congratulate my hon. Friend on a superb speech. She is saying everything that I would say.

[Mr Ruffley]

My hon. Friend asks why there was not greater consultation with Suffolk. Does she agree that now, because, as she mentioned, other A roads in our region and other regions are not being tolled, there is a risk that there will be an A road apartheid in Suffolk—discrimination against business users, and other travellers into the county? Could that be deleterious to logistics companies in Bury St Edmunds, Stowmarket and Needham Market, in my constituency, and, equally importantly, in the golden triangle of Norwich, Ipswich and Cambridge? That is one of the engine rooms of growth for the whole nation.

[Dr Coffey]

My hon. Friend is right. I hope that the Minister realises that we are united across the county in our concern about the economic impact on the county and region, particularly in the light of our growth industries. My hon. Friend put that well.

To go into a little more detail, there were various options with the original consultation and it seems that we have taken up option 3, which includes the Huntingdon southern bypass scheme and removal of the A14 bridge, and whose estimated cost is £687 million, with a benefit-cost ratio of 2.15 and 2.26 million vehicle hours saved; and option 5, which also includes the bypass and would retain the trunked A14 through Huntingdon, with the addition of local roads.

The estimated cost of option 5 is £1.2 billion, nearly double that of option 3, with a BCR of 3.49 and 2.98 million vehicle hours saved. In both cases the eastbound saving is 19 minutes and the westbound saving is 14. The document gave, as a reason for introducing local access roads, allowing tolling to be put in more easily; so it seems that the scheme has been designed to make tolling easier, although introducing those local roads would increase complexity and cost at the Girton junction. The combination of the two options is coming out at £1.5 billion, but that sum is also due to enhancements to the A1, which were never part of the original proposals.

There are several issues to consider. My hon. Friend the Member for Ipswich (Ben Gummer) wants to speak, so I shall draw my remarks to a close. The A14 needs to be improved. I thank the Government for investing so heavily in that key route for our region and for UK plc. However, users feel that they already pay their share; they do not want to be singled out to pay a toll while other parts of the road network continue to be fully financed.

I am proud to support the “No Toll Tax on Suffolk” campaign of the Suffolk chamber of commerce; it has gathered much momentum. I also welcome the backing of Suffolk county council, Suffolk Coastal district council, New Anglia local enterprise partnership and other business organisations. I am sure that the Minister will write to me if he cannot answer all the questions, but I ask him to listen to the concerns being put to him, because the issue is rousing Suffolk as we speak.

[Sir Edward Leigh (in the Chair)]

The convention of the House is that if a Member wants to contribute after the initial speech, they must have the agreement of the person who secured the debate and the Minister. I remind the hon. Member for Ipswich (Ben Gummer) that we must leave adequate time for the Minister to sum up.

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[Dr Coffey]

I just want to impress upon the Minister that businesses were genuinely angry that the Highways Agency refused point blank to hold a consultation meeting in Suffolk. It refused the request of MPs, which was not at all welcome.

[Mr Goodwill]

I asked my officials about that. The consultation was focused on the area where the road is to be built because of the effect on local communities. If anyone has had involvement in the High Speed 2 project, they will know that it is the communities near such projects that are likely to have the strongest views. Those further afield who will benefit from the scheme may well feed in their views but were not given the opportunity to contribute through road shows. I intend, however, to have regular meetings with representatives of the freight and logistics industry, as I am sure they will have views to voice.

Finding the right highway solution, which is both affordable and fair, remains a priority for the Government. The results of the consultation exercise, when they are published later in the year, should provide an important indication of public opinion and will help the Highways Agency as it develops the scheme proposals. It remains clear, however, that to do nothing to improve this overcrowded section of our trunk road network is really not an option and that traffic congestion in the Cambridge and Huntingdon area will worsen without improvement and will constrain economic growth in the wider east of England in decades to come.

Oral Answers to Questions

Baroness Coffey Excerpts

Thursday 27th June 2013 Commons Chamber

The hon. Member for Caithness, Sutherland and Easter Ross, representing the House of Commons Commission, was asked—

[Dr Thérèse Coffey (Suffolk Coastal) (Con)]

2. What comparative assessment he has made of the opening hours of the Library and the Table Office and the sitting hours of the House.

[Mr Frank Doran (Aberdeen North)]

In the absence of my hon. Friend the Member for Caithness, Sutherland and Easter Ross (John Thurso), I have been asked to reply.

Members expect that both the Table Office and the Members Library will remain open at least until the rise of the House on sitting days. In the case of the Table Office, the Adjournment of the House at the end of sitting is the point at which no further procedural business can be transacted. Some adjustment has been made recently to opening hours of the Table Office and the Library to reflect the earlier sitting of the House on Tuesdays and Thursdays and the use made of services by Members.

[Dr Coffey]

I thank the hon. Gentleman for that answer. I recognise the importance of the Table Office staying open until business has finished, for example so that amendments can be laid, but I suggest, as we are trying to save money, that we look again at the Library service’s opening times so that when we have a late moment of interruption on, say, a Monday, we do not have Library staff here until 1 o’clock in the morning, as frankly that is unnecessary and more office hours would be appropriate?

[Mr Doran]

I think that Library staff who are on duty are working on other matters, because Members phone in with questions and all the rest of it. The present arrangements were agreed by the Administration Committee after a study of last year’s changes to the House’s sitting hours. If the hon. Lady wants to take the matter to the Committee to look at again, I am sure that its Chair, who is sitting next to her, will be happy to listen.

Rail Franchising

Baroness Coffey Excerpts

Tuesday 26th March 2013 Commons Chamber

[Mr McLoughlin]

I am certainly more than happy to meet my hon. Friend at Nuneaton station. I believe that a date is going in my diary this afternoon—if it was not already, it will be now.

[Dr Thérèse Coffey (Suffolk Coastal) (Con)]

Suffolk commuters will be disappointed by the delay, although they are used to it as passengers, even though things have improved under Abellio. Will my right hon. Friend assure me that this will not deter or delay the needed investment in the freight line from Felixstowe to Nuneaton?

[Mr McLoughlin]

The announcements I have made today will have nothing to do with the freight line. Again, I make the point to my hon. Friend that we are seeing not only an increase in passenger numbers, but a huge increase in the amount of freight using our railways—I believe that the figure is about 60%. I know that most colleagues and the general public welcome that very much.

HGV Road User Levy Bill (Ways and Means)

Baroness Coffey Excerpts

Tuesday 23rd October 2012 Commons Chamber

[Huw Irranca-Davies]

The Minister is already nodding. I am slightly disappointed, because hauliers want an assurance that under the provisions VED will be cut proportionately to the levy and that they will actually benefit. I have been in the same situation as the Minister, and it would be great if he could assure them that come what may, there will be proportionality and that people will gain, or at least not lose out.

The measure is all about creating a level playing field with our European counterparts, because we have been disadvantaged. Can the Minister give us an assurance that UK hauliers will not lose out? If many will gain, but some will unfortunately lose out compared with others, can he tell us why that is and who they may be? I suspect I may have difficult messages for some of the hauliers in my patch who assume they will all be winners under the mechanism.

[Dr Thérèse Coffey (Suffolk Coastal) (Con)]

The hon. Gentleman makes a fair point about the message we need to deliver to our constituents. Does he recognise though that it should not be about the UK being a winner, but making sure that we get money from foreign users? That is the key point.

[Huw Irranca-Davies]

The hon. Lady makes a good point. It is not a case of us being winners. I think the hon. Member for Spelthorne slightly misspoke earlier when he talked about putting protection in place. As the hon. Lady says, it is not to do with protection for us, but with creating a level playing field. I am sure the hon. Gentleman did not intend to suggest that we want fortress mechanisms; it is about getting a level playing field.

--- Later in debate ---

[Dr Thérèse Coffey (Suffolk Coastal) (Con)]

I, too, have been tempted to contribute to the debate, as it relates to the port of Felixstowe in my constituency. The port is not known for its roll-off carriers and the immediate access it provides for foreign vessels to the A14, but the A14 is a key artery that starts in my constituency and cuts across to the midlands, passing not far from the constituency of my hon. Friend the Member for North West Leicestershire (Andrew Bridgen).

As has already been referred to extensively, hauliers feel that it is right that foreign hauliers pay their fair share. Some points have already been made today about how we can ensure that a fair share is paid. I know that it is planned that the database will be given to a private contractor to follow this through, so I wonder whether at the same time it might be given a bonus for using the database to recover fines for other traffic regulation violations.

It is important to send to our haulage companies the message that this is not a tax on them, that the Government are aware that they cannot keep imposing extra charges on British businesses and that there will be compensation the other way through lower vehicle excise duty. My understanding is that, although there will be no winners as a result of this scheme, there could be some losers, which is concerning for some of our larger firms. We need to ensure that we are careful in how we deploy the regulations that will be introduced.

I can see that the Minister is a bit busy at the moment, but I am meeting him tomorrow with a delegation of MPs from Suffolk, and he will certainly be hearing from me that one of the proposals for the A14 might be to start tolling. I am a good Conservative and not necessarily against road tolling in all parts of the country, but the Government need to think about that where new capacity is brought in, and should not just pick key logistics routes. Therefore, if not all money raised through the levy is to go back to British hauliers through a reduction in VED—I know that the Minister has to be careful with the European Commission in how that happens—I will be asking him tomorrow instead to think about how some of it might be used to avoid tolling on a trans-European network road. I am delighted to support this ways and means motion.

Rail Fares

Baroness Coffey Excerpts

Wednesday 5th September 2012 Commons Chamber

[Alison McGovern]

I rarely reject out of hand anybody’s contribution to a debate on so important a subject as the rail industry. I merely make these points as a precursor to what I am about to say. I always feel that we should be cautious in what we say, because I have seen at first hand the complexity of some of the problems we face in running efficiently the kind of extensive rail system we have in Britain.

I want to speak about two things: first, the question of the average fare rise across the fares basket and the restrictions on rises; and secondly, some of the other ticketing issues that rail industry consumers face and what the Government’s ticketing review could consider in order to assist consumers. On the question of the average fare rise versus the cost to travellers of individual fare rises, I have a problem with the Government’s apparent position. The Secretary of State spoke at length only a moment ago about the importance of allowing train companies to raise fares in a way that allows them to maximise yield, but the problem is that that potentially allows significant unfairness. Those whose travel is absolutely necessary for their employment face potentially significant rises, whereas those who have a choice about how they travel are less likely to face those rises. To use an economist’s term, those with an inelastic demand curve—I apologise for my use of jargon, but it may be helpful—are stuck paying ever higher season ticket prices, while those who make up the elastic part of demand can pick and choose, so train companies maximise those yields on what tend to be leisure fares, for journeys that people can choose whether to make. That is the point that many Members across the House are making in different ways.

The problem with allowing average fare rises is that people who cannot choose whether or not to travel by train because they have no practical alternative can be faced with steep rises. The flexibility to do that cannot be allowed. In my view it is not fair. Of course, that is a decision that the Government must make based on the facts. Back in 2009 the then Transport Secretary took a decision, and I support it, because it was about ensuring not only that the train companies were able to do the business they had been contracted to do, but that there was a level of fairness for the travelling passenger.

The Government must think hard about this matter. If consumers who have no practical alternative to travelling by rail are faced with steep fare rises year after year, they will think that it is a significant unfairness to them. Members on both sides of the House have made that point. We need to be clear that this is about different groups of passengers and train companies effectively negotiating their way through to maximise benefits, in some cases for them rather than passengers.

In Merseyside we have quite a specific situation. Travel around the Mersey travel network tends to be more reasonable. However, one of the things we are desperately trying to do is increase job opportunities for people in Merseyside who are perhaps a little further afield. Earlier I cheekily mentioned to the Secretary of State my campaign to improve the Wrexham to Bidston line. It is all about helping people to travel from places in the Wirral and the rest of Merseyside across our city region and further afield, to Manchester or north Wales, to find work wherever it may be.

That is the Government’s stated policy, and they tell us they believe in it. However, with rail fares continuing to increase—my hon. Friend the Member for Rhondda (Chris Bryant) made this point eloquently—those on the lowest incomes will not have an option. They will be unable to take a decision to make what is currently a 90-minute journey from Bebington, Birkenhead, other parts of the Wirral, Southport or the wider Merseyside area to Manchester and other cities, because once they have made that further journey it will be just too expensive. That runs absolutely counter to everything we are trying to achieve to drive up the economic performance of our northern cities. The Government must think carefully about whether their approach to rail fares is not actually against the drive of what they are trying to do across Government.

Secondly, we need to think carefully, perhaps as part of the Government’s ticketing review, about how to ensure that the sale of train tickets and rail travel in general works for the customers, who pay significant amounts. I am particularly interested in how the current set-up harms people working for businesses and organisations who do not use the railways frequently enough to be considered regular or daily users, or even commuters, but do use them frequently enough for there to be a significant impact on their business.

The Government need to pay attention to a couple of aspects. The first is what a peak time is. When I was growing up, it seemed as if we always knew what the peak times were and that they stayed the same year after year. That may be the effect of the rose-tinted glasses of hindsight; perhaps things were different in reality. However, now peak times seem to change all the time.

If a person is travelling on different parts of the network, things can get difficult. For example, if their business, like many businesses in Liverpool and the Merseyside city region area, requires them to go to London one week and Leeds the next, it will be difficult for that person to find out whether the peak times are the same everywhere. The member of staff at Eastham station in my constituency may or may not have in their head the relevant peak times for the ticket.

[Dr Thérèse Coffey (Suffolk Coastal) (Con)]

Having grown up in Liverpool, I know the hon. Lady’s rail line, Wrexham to Bidston, very well; I had family in the area. However, surely people in today’s world just check online—on nationalrail.co.uk or other sites, which will tell them the pricing of tickets for when they want to travel, including for off-peak, super-advance and similar tickets. I am not sure why there is such a complication.

Rail Investment

Baroness Coffey Excerpts

Monday 16th July 2012 Commons Chamber

[Justine Greening]

We are looking at whether there is any possibility of opening lines. Our main focus has been on whether we can improve stations, and in fact open new ones, but over time we may be able to unlock some of those local decisions through the Department’s decentralisation approach. We have just consulted on that, some very interesting responses have come through and I hope that we will make some announcements later. I take the hon. Gentleman’s point with real interest.

[Dr Thérèse Coffey (Suffolk Coastal) (Con)]

May I say how delighted we are about the Ely North junction? It is great news for East Anglia and for unlocking freight from Felixstowe, and we commend the Secretary of State on it. What further junctions can we look forward to for unlocking freight?

[Justine Greening]

My hon. Friend has raised the issue tirelessly and recently had a Westminster Hall debate on the topic, and it is campaigners such as my hon. Friend who have really powerfully put the case to Ministers for looking at the issue and seeing what we can do to tackle it. The Ely junction will be done, and it matters massively, because it creates the potential for enhanced passenger services between Cambridge, King’s Lynn and Norwich, so it will have broader benefits, including freight, which, with Felixstowe nearby in her constituency, I know is close to her heart.

Rail (East Anglia)

Baroness Coffey Excerpts

Tuesday 3rd July 2012 Westminster Hall

[Dr Thérèse Coffey (Suffolk Coastal) (Con)]

Mr Hollobone, it is a great pleasure to serve under your chairmanship. I am delighted that many colleagues from our counties are here today. I extend a warm welcome to the hon. Member for Nottingham South (Lilian Greenwood), who will be alone on her side of the Chamber because East Anglia has not a single Labour Member of Parliament. However, she will be pleased to know that Labour councillors have worked through their district and other councils, local enterprise partnerships, rail passenger groups and MPs to put together a vision, so she should not feel completely alone. I was delighted to be able to send both her and the Minister a copy of the prospectus before today’s debate.

Investing in East Anglia’s rail will benefit local residents and the national economy. Connecting our economic hubs, moving freight on to rail and improving our branch line services, alongside smarter ticketing, new and refurbished trains and better stations, will make a huge difference to people in Suffolk, Norfolk, Essex and Cambridgeshire. That is why we are all united with the people I mentioned earlier to try to deliver a document, “Once in a generation—A rail prospectus for East Anglia”, which was launched yesterday. I am delighted that many MPs were able to put their name to our proposals.

I know that some colleagues are planning to speak and some are planning to intervene. I will indicate the appropriate point, if that is okay, because I will be referring to some colleagues who are not able to be here today. That will be clearly signalled, and I hope that the signalling is better than that which we experience on the great eastern main line.

In putting the matter into context, if I paint a negative picture, I am afraid that it is, sadly, a true one—poor reliability, cramped commuters, old stock, unsmart ticketing and a poor deal for East Anglian rail passengers, who, with the premium in the last franchise, are net contributors to rail services in the rest of the country. However, I am delighted that we have come together to say that we can have a better service. It is possible and feasible, and there is a genuine commitment to try to ensure that the infrastructure for East Anglia is among the best, so that we can harness the economic benefits and a better quality of life for people.

I have just dashed from a meeting of my Select Committee, in which we were interrogating Broadband Delivery UK and the Under-Secretary of State for Culture, Olympics, Media and Sport, my hon. Friend the Member for Wantage (Mr Vaizey), who has responsibility for broadband. Broadband is another key asset, but better broadband for our counties will not replace the need for people to travel to work and for investors to come out to our communities.

I have mentioned the prospectus already, and I am not planning to regurgitate every single priority in the document. I will try to give an overview and focus on Suffolk.

Some colleagues are not able to attend today—some are ministerial colleagues who approached me to say that unfortunately they have meetings and cannot attend. They include my hon. Friend the Member for Norwich North (Miss Smith), whom I think should be given great credit for trying to pull together, on a long journey—even longer than from my local station at Darsham—the different interests into one compelling vision for our counties and for growth. She has led the way, and she should be thanked for trying to ensure that her constituents will get a better service out of the vision.

Unfortunately, my right hon. Friend the Member for South East Cambridgeshire (Mr Paice) is also unable to be here today. He wanted me to stress the importance of the Ely North junction. I am sure the Minister will hear the words “Ely North” many times in today’s debate, as it is a key interchange, not only for residents in Ely and north Cambridgeshire, but for unlocking our freight corridor and services to Cambridge and the other hubs of Norwich and Ipswich. It is also important to an east-west link so that, instead of going via London, commuters can go from Oxford to Cambridge to Norwich, linking three great universities of knowledge and investment.

My right hon. Friend the Member for Chelmsford (Mr Burns) cannot be here, sadly, because he is trying to run the national health service, but he has been pressing for greater capacity, a new station in his constituency and the track improvements that are required on the great eastern main line to make a difference for passengers.

My hon. Friends the Members for Great Yarmouth (Brandon Lewis) and for Waveney (Peter Aldous) wanted to remind us that we need green transport, enabling green growth in the green enterprise zone shared between Norfolk and Suffolk. The hon. Member for Cambridge (Dr Huppert) wanted to remind us about increasing connectivity in the key east-west interchange. My hon. Friend the Member for Ipswich (Ben Gummer), who is in a Select Committee meeting, has been pivotal in trying to improve investment into Ipswich and surrounding constituencies, including mine and that of my hon. Friend the Member for Central Suffolk and North Ipswich (Dr Poulter), who is present. My hon. Friends the Members for South Suffolk (Mr Yeo) and for Harwich and North Essex (Mr Jenkin), who are also in Select Committee meetings, continued to stress, quite rightly, the importance of Manningtree as a commuter station and key attributes such as the investment in the station, but also the important need for accessible platforms.

I will happily welcome interventions from colleagues now.

[Jim Shannon (Strangford) (DUP)]

The hon. Lady is probably thinking, “What is a Northern Ireland Member going to say about East Anglia rail?”, but I would like her to take on board my point. A great number of Army camps are stationed in Norfolk, and service personnel use trains to get from base to camp—one of them reported to me last week that it took an hour and a half extra to get from A to Z. Does the hon. Lady feel that the usage of trains by Army personnel puts a greater onus on rail improvement in the area?

[Dr Coffey]

The hon. Gentleman makes an important point. I have not considered military travel, although there is an Army regiment in my constituency. However, we should ensure, through our county councils and as Members, that the document—which, although it is a prospectus, is not exhaustive—includes such considerations. I note that the constituency of the hon. Member for Colchester (Sir Bob Russell), who is present, has a significant Army presence, which is quite close to the railway station, but I am sure that other colleagues whose constituencies have RAF bases, including Marham in the constituency of my hon. Friend the Member for South West Norfolk (Elizabeth Truss) and Wattisham in the constituency of my hon. Friend the Member for Bury St Edmunds (Mr Ruffley), will want to follow that issue up.

Other Members present are from different counties, so they will talk about specific lines or issues there in more detail. For investors, including in tourism, the issue is capacity to get out of London to our different economic hubs. We should ensure that it is as easy as possible to get on the train to come to some of our beautiful beaches and our cultural highlights in different parts of our counties. Commuting into London is also an issue. There is no doubt, particularly in Essex, that people are fed up of terrible trains, having to stand for a long time and being crammed in. It is not fair on them. There is a two-way process: one thing that we need to do is boost off-peak services through tourism initiatives. LEPs and our county and district councils are keen to ensure more frequent and reliable services.

There is no question but that Cambridge with its research centre and development of capital, Norwich with the knowledge base in its university, especially in life sciences, and Ipswich and surrounding areas and their software development industry, provide a big opportunity for expanding connections between the counties. The risk is that the Government get it that the east of England is already a net contributor to the national economy and, therefore, do not think it needs investment, but we can generate a lot more investment as a consequence of such improvements.

[Sir Bob Russell (Colchester) (LD)]

I congratulate the hon. Lady on securing the debate and on her speech. For the benefit of the Minister, will she confirm that there has been detailed discussion among hon. Members from across the four counties? We were not united at the start of the journey; we are now united. I hope that I will have an opportunity to expand on that later.

[Dr Coffey]

That is a fair point. We have all been united in our vision of wanting better services for our constituents. We may have been less united, in our discussions with Network Rail and LEPs, on what that meant. I would like to think that the intentions of hon. Members across the counties have always been clear. This is not about trying to reduce services for our constituents, but improving them.

[Mr Stewart Jackson (Peterborough) (Con)]

I congratulate my hon. Friend on securing the debate. She has not mentioned the pre-eminent city in Cambridgeshire—Peterborough, as opposed to Cambridge. I jest. Does she agree that the great advantage of this prospectus, apart from its ambition, is that it is comprehensive and holistic? It integrates different modes of transport. It is not just a list of discrete transport schemes. There are references to the Felixstowe to Nuneaton freight corridor, taking the pressure off the A14 and the A11, and traffic movements to Stansted airport, all of which show that the prospectus is ambitious and, in the long run, will be good for the taxpayer as well as the local people in East Anglia.

[Dr Coffey]

My hon. Friend is absolutely right, and reinforces the point that investment in our rail infrastructure could mean that our region, rather than other parts of the country, can be a huge multiplier. The idea that people want to travel up to Lowestoft by car to have a look at investment is ridiculous. Along the east Suffolk line, sitting in a one-carriage train, perhaps after making the connection at Ipswich, is not always the most attractive way to arrive for an investors’ meeting.

For a quicker service on the great eastern main line, we need to speed up the trains. One way to do that is to focus on level crossings. I will refer to this again when I come on to the issue of branch lines, but we need to ensure that there are stretches where trains are unhindered. We also need to open up capacity at Liverpool Street station. Certain things have to happen before any of that can take place. Crossrail will have to be completed, which we hope will happen by 2018. We have to continue the work at Bow Junction to ensure that those lines can be used and that we get those slots. Peak services along the great eastern main line are already at full capacity. Although freight currently runs on the line, it does not do so during peak times. Extra capacity, therefore, is critical.

I do not pretend to be a rail specialist. I do not know the difference between four-tracking, the clever loops that Network Rail is now thinking about, or the extra bit of track that is needed in that stretch near Chelmsford. What I do know, however, is that there are clever brains working on solutions that will mean that we can open up vital capacity. By doing so, we can increase reliability and speed.

[Mr Keith Simpson (Broadland) (Con)]

What a vision of loveliness my hon. Friend is, and I congratulate her on securing this important debate. To cut to the chase, many MPs and many of our constituents believe that, in the past, neither Network Rail nor the franchisees have taken East Anglia seriously. We have the impression that previous franchisees have asset stripped. We have been dumped on with out-of-date rolling stock, and capacity has never been properly considered. The key question is this: is she confident that Network Rail and the new franchisees will take this seriously? If they do not, one could be forgiven for thinking that perhaps the Government do not have a priority.

[Dr Coffey]

I thank my hon. Friend for that intervention. We have to be serious and we need to ensure that the Government are serious, so that when the new tender is put out for 2014, the very exacting standards that we are demanding, exemplified by the prospectus, are delivered. Nothing less than that will be good enough. My hon. Friend mentioned rolling stock, and I agree with him. I will come on to the issue of traveller experience later. Yesterday, some hon. Members were on the same train as me travelling to London Liverpool Street. I am convinced that they are the same trains I used to travel on as a student between Liverpool and London, back in the early ’90s. To simply recycle stock when, on average, our carriages are 25 years old, makes me wonder how old some of our stock actually is.

We have a large number of unstaffed stations. Abellio is the current franchisee. It has a very short franchise, and has made some real improvements. We now have print-at-home and mobile phone ticketing. That might not suit every single passenger, with the demographic of our constituents, but it is a huge step forward. Instead of paying the full price, customers can now print at home or get a neighbour to do it for them. That is a big improvement, and I give credit for that to Abellio.

[Matthew Hancock (West Suffolk) (Con)]

From the point of view of my constituency, I emphasise the unity behind the proposals. My hon. Friend mentioned bottlenecks. She must agree that unblocking bottlenecks, especially at Ely, is a vital part of the prospectus, not least because increasing the amount of trains to Brandon, with stronger links to Cambridge and Norwich, is vital for its economic future. Therefore, it is not just on the east coast, but throughout East Anglia, that unblocking bottlenecks is critical for our economic future.

[Dr Coffey]

I could not agree more with my hon. Friend. Perhaps we should have started a book on how many times Ely North junction was going to be mentioned. I am sure that the Minister will be fully aware, by the end of the debate, of how important Ely North junction is across the county.

On other aspects of reliability, returning to a point made by my hon. Friend the Member for Broadland (Mr Simpson), Abellio is currently upgrading some locomotives to try and address short-term reliability challenges. There is nothing more frustrating than a lack of reliability. People may be happy with a slower service as long as it is reliable and on time.

My hon. Friend the Member for Peterborough (Mr Jackson) alluded to the issue of freight. I represent Felixstowe, which has the largest container port in the UK. Placing more freight on to rail is a key strategic priority. Indeed, it is part of the A14 challenge, which the Under-Secretary of State for Transport, my hon. Friend the Member for Hemel Hempstead (Mike Penning) is leading on behalf of the Department for Transport. We can get more freight on to rail. I am delighted that the Department had already confirmed the funding for the Ipswich north curve, which will mean that instead of trains going into London, they will be able to go straight across Ipswich and on to those lines. In the next franchise, in the longer term, we want to see the electrification of the track, which will improve connectivity, reliability and speed. It is critical for both Felixstowe and Harwich to remove some lorry traffic from the A14. The Ely North junction is key part for further developments up into the midlands. It would make such a difference for quite a small amount of money. To develop both junctions at the same time would make a lot of economic sense. My understanding is that the cost is approximately £41 million. I am a great believer in challenging Network Rail to do work more cheaply. I am sure that I am not the only hon. Member who feels that Network Rail mentions costs in units of £1 million, whether for a lift, bridge or whatever. With the McNulty review, I am sure better ways will be found to bring those bills down.

I am sure that hon. Members from different counties will refer to their own branch lines. My hon. Friend the Member for West Suffolk (Matthew Hancock) has already done so by mentioning Brandon, and the need to ensure that it becomes an inter-county line, not just a humble branch line. I have nine stations in my constituency. In the past year, when the service went up from two-hourly to hourly from Ipswich up to Saxmundham, we saw an increase in the number of passengers. We know that improving services will provide a return to the Government and to rail companies in terms of fares.

I was delighted to work recently with my hon. Friends the Members for Waveney ) and for Central Suffolk and North Ipswich on pressing the Government for funding for the Beccles loop. I am delighted that £3 million was confirmed a couple of years ago and that Suffolk county council came up with the other £1 million. We broke the ground not too many months ago and work is under way. In December, we will finally have an hourly service. That is compensation for there no longer being any through trains from Lowestoft to London. That sacrifice—made before we became MPs—allows more trains on the line between Ipswich, Colchester and London to increase capacity, preventing a slow diesel train, for example, holding other trains up. My constituents have paid a fairly heavy price until now, but I am sure that we will all be rejoicing in December; it will be a nice Christmas present for rail passengers in my county.

I have already mentioned the Beccles loop. Our county council’s ambition is a loop near Wickham Market station so that more freight can go to Sizewell C during its construction. It is important that we do as much as we can to get lorries carrying freight—construction materials—into the site and removing spoil from it off the mainly single-track roads in Suffolk.

I have already mentioned Felixstowe. I shall mention it again in relation to passengers. The port is keen to move more into freight and is legally obliged to dual the track between Felixstowe and Ipswich. My right hon. Friend the Minister is already aware of this and was kind enough to meet my hon. Friend the Member for Ipswich and I last week to talk about it. It is crucial that we continue not to reduce passenger services, but to ensure that obligations are kept and that the outcomes for passengers are the same, if not better.

Some colleagues from elsewhere may regard this as a wish list: it is a wish list, but it is a credible one. East Anglia has been the Cinderella of British rail for too long. With a commitment to railways not seen in a century, the coalition Government have the chance to be our Prince Charming, or Princess Charming, depending on legislation next year. I should like the Minister to accept our proposal and let East Anglian passengers travel happily ever after. However, this is no fairy tale; it is a real vision and a tale with a moral. When MPs, councils, businesses and passenger groups come together, we can achieve together, and that matters for passengers, for economic growth and for jobs, which is all great news for our constituents.

East Anglia can provide a huge economic benefit to the country, but we need infrastructure. Broadband is under way and we now need rail to complete the green dream and ensure that East Anglia rail delivers.

[Several hon. Members]

rose—

Amendment of the Law

Baroness Coffey Excerpts

Friday 23rd March 2012 Commons Chamber

[Susan Elan Jones (Clwyd South) (Lab)]

I am most grateful to you for calling me to speak in the Budget debate, Mr Speaker. I do not propose to retread old ground, and I shall confine my remarks to how the Budget will affect my constituents. The backdrop to my observations is the fact that unemployment has gone up by 12% since May 2010, according to the claimant count figures from the Office for National Statistics. The latest figures show that 1,811 people in my constituency were unemployed in February 2012. Those same statistics show that unemployment has risen for 15 of the past 21 months, and job losses have included 150 highly skilled jobs at Tetrapak.

A major supermarket is opening in Cefn Mawr in my constituency next Monday, and I welcome that. I welcome the fact that about 100 new jobs will be created, although most will be part time. What I do not welcome is the news that 11 people were chasing every single one of those job vacancies. That is the sort of economic climate people in my home area are facing. It is why it is living in cloud cuckoo land to think that our 41 local Remploy staff will wander straight out of the factory that the Government want to shut into a land of milk, honey and stable new jobs. That is deeply wrong, unjust and immoral, and if the Tory-Lib Dem double act in Westminster will not do anything to put it right, it is vital that they play ball and devolve it to a Labour Government in Wales who will.

What people in my home area know all too well is that we need more of the wealth that private sector jobs create. There is a strong work ethic in our area, which runs deep in our twin industrial and agricultural heritage. We do not expect something for nothing, and these strong cohesive communities are very cross—rightly so—when anyone says we do. This is why we are so concerned about unemployment, and why we know that however many courses people take, however much work experience they get and however many boxes are ticked, what really matters is how many real jobs are out there—jobs that create prosperity and purchasing power, jobs that are for personal fulfilment and challenge, jobs to promote well-being and cohesion in our communities.

Yes, purchasing power is vital in all this. What did construction companies think when the Government swooped up the VAT rates? Let us remember the VAT tax bombshell—I mean the real one that happened on 4 January 2011. The builders and tradesmen in small and medium-sized enterprises certainly remember it because it had a major effect on their businesses.

The Minister spoke about people with business experience, so I will provide her with an example. Mike Learmond, regional organiser for the North Wales and Chester Federation of Small Businesses, put it like this at the time:

“Small firms will be hit hard by the rise in VAT, as unlike big businesses they can’t absorb the increase. Thus small firms will have to pass the full cost on to customers, reduce stock levels or find cost savings elsewhere—potentially costing jobs and undermining the Government’s private sector led recovery.”

Well, 1,811 people in my constituency know exactly what he meant by that.

In a Westminster Hall debate on micro-businesses in January this year, I was most interested when a Conservative Member with clear expertise in this area, the hon. Member for Newton Abbot (Anne Marie Morris), made this very thoughtful point about VAT:

“We have on a number of occasions talked about the possibility of reducing rates for restoration and repair of houses, bringing the rate down to 5% rather than the full 20%. It seems to me that, given the pressure on the Government to increase the available housing stock, now is the time to look at that again.”—[Official Report, 25 January 2012; Vol. 539, c. 137WH.]

I agree with her totally and am heartened that my own party has pledged itself to a one-year VAT cut to 5% on home improvements, repairs and maintenance to help home owners and small businesses. In the interests of small and medium-sized businesses, enterprise and support for the work ethic, I am bitterly disappointed that the Chancellor has not used the opportunity of the Budget to do that, as he could have done.

On purchasing power, I am at a loss to understand quite how this Government’s apparent embrace of regional pay, which means pay cuts to my constituents and the people of Wales more widely, is supposed to create an environment in which private sector businesses will flourish. There is also, of course, a deeply moral issue. If a policeman or woman in my constituency is serving the public—whether it be in my constituency or elsewhere, as when they travelled down to London in vans to support the Met police during last summer’s riots—it is right that those servants of the public be paid the same rates. [Interruption.] I wonder whether there will be a real intervention. Perhaps not. In many ways, there will be rightful anger and disappointment at the missed opportunities of this Budget.

[Dr Thérèse Coffey (Suffolk Coastal) (Con)]

rose—

[Susan Elan Jones]

Oh, it looks as though there is going to be an intervention. No? Yes, please. No, okay. [Interruption.] I thought we were going to have an intervention, but—[Interruption.]

--- Later in debate ---

[Dr Coffey]

I had assumed that the hon. Lady would resume her seat if she had accepted my intervention. She might want to consider the fact that London police officers already receive London weighting, as do other public officials. I remind her, too, that it was her Government who introduced regionalised pay for the Court Service; the last Labour Government started it.

[Susan Elan Jones]

It is a great pity that the hon. Lady has been so interested in following the Conservative party’s crib sheet that she has not read about what happened. The circumstances were very different with the court system, and 50 local rates were reduced to five—it was totally different and it standardised the pay far more. [Interruption.] Oh dear, I fear that the hon. Lady will have to wait a little longer to be promoted to a Parliamentary Private Secretary.

As I was saying, I believe that there will be rightful anger and disappointment at the missed opportunities of this Budget. About 14,000 millionaires—we saw some of them on the Front Bench the other day; it looks as though the servants are on duty today—will be rubbing their hands with glee at the £40,000 tax cuts they are receiving, while small and medium-sized entrepreneurs, teachers, nurses, police, families and pensioners are collectively faced with a £3 billion stealth tax, and are adversely affected. The 1,811 unemployed people in Clwyd South will rightly feel let down this week by a Tory Government, aided and abetted by those spectacularly useless Orange Book Lib Dems. Let us hope that, even at this late hour, this Government will put working families and those who want to work ahead of their ultra-rich cronies.

[Mr Stewart Jackson (Peterborough) (Con)]

I believe that this is a courageous Budget. It is innovative and ingenious, notable for the steady stewardship of the Chancellor of the Exchequer. We need to take a strategic overview. The recession from which we have emerged is a deleveraging recession, a paying down debt rather than a destocking recession, so some of the normal policy prescriptions on fiscal and monetary policy have proved useless in the face of that. That makes the imperatives of long-term reform of the public services, particularly education and welfare, tax cuts and supply-side reforms, including the reduction in taxes and the regulatory burden, even more important.

[Dr Coffey]

My hon. Friend is making a strong point about deregulation. I would point to paragraph 2.238 of the Red Book, which shows that the Government are committed to scrapping or improving 84% of health and safety regulation. Does my hon. Friend agree that this is the right approach—focusing on what is most risky as opposed to applying all sorts of regulations that are no longer necessary, valid or helpful?

[Mr Jackson]

My hon. Friend makes a very good point, which explains why this Budget has had consensus support and been viewed from a positive perspective by business organisations across the country.

We should be talking a paradigm that involves tax and spending, not just tax. There has been too much focus in the last few months on cutting or increasing taxes, when we should be talking about expenditure. Are we really asking the public to believe that a net 6.8% reduction in public expenditure over the comprehensive spending review period is enough to rebalance the economy when we saw a 53% real-terms growth in public expenditure between 2000 and 2010? We were spending £450 billion just 10 years ago on public services, and we are now spending £702 billion. Are we getting value for money for our constituents and our taxpayers?

Of course, Conservative Members will not let the electorate forget the disastrous and poisonous economic legacy left to us by the Labour party—to the extent that we have to pay £120 million a day in debt interest and are £47.6 billion a year in debt this year. As I said earlier to my right hon. Friend the Transport Secretary, had Labour remained in office, they would have had to borrow another £200 billion. They left us a structural debt in a period of economic growth. They left us a situation in which individual net borrowing doubled in just six years, while we have massive sectoral imbalances and a systemic dependency on debt. That was Labour’s legacy.

Labour Members still have no economic credibility; if they were a party with a cogent and coherent narrative on the economy, they would pledge to reinstate the 50p tax rate and reverse the policy on freezing age-related allowances. They do neither because they are opportunistic and they know that if they were elected to government, they would need the money.

Network Rail

Baroness Coffey Excerpts

Thursday 2nd February 2012 Westminster Hall

[Dr Thérèse Coffey (Suffolk Coastal) (Con)]

It is a great pleasure to participate in this debate under your chairmanship, Mr Rosindell. I was delighted to secure the debate, led by my hon. Friend the Member for St Albans (Mrs Main). On behalf of us all, I would like to ask the Minister to pass on our best wishes to my right hon. Friend the Minister of State, Department for Transport, who has responsibility for rail, who has sadly had an accident. I understand that she is back on her feet. I hope that she makes a swift recovery. I know she is very resilient, but I hope she gets the rest she needs to make a full recovery.

Network Rail is 10-years-old this year. We all know how, why and when it came into existence. It is timely and appropriate to have this debate, especially as just over a month ago the Office of Rail Regulation served a notice of breach of licence to Network Rail on two fronts: on long-distance rail and on freight rail services. I have a particular interest in freight rail, which I will come to later in my speech.

One point that has been well expressed—I will try not to repeat too many points that have already been made—is that there has been some progress with Sir David Higgins. However, that does not mean that his job already requires significant six-figure bonuses. I am sure I am not the only person whose eyebrows were raised on understanding that that would be the case. I encourage the remuneration committee of Network Rail to consider carefully—having received those two breaches and considering the ongoing challenges that our constituents face—whether that bonus would be appropriate. I have no problem at all with rewarding success, but I cannot say at the moment that there has been great success on our rail network.

Since the debate was announced, I have had a very quick response from Network Rail. I commend my hon. Friend the Member for St Albans, because I understand that she would not meet with Network Rail until the debate had taken place. I did meet people from Network Rail. It was fantastic that my original query from last summer, which I followed up in October and again in January, was finally answered—good news. It also gave me the opportunity to meet Dave Ward, who has been put in charge of the East Anglia region. He talked about some of the changes that have already happened, and what he plans to do. I will give praise where praise is due: I like some of the changes that have been proposed. However, the proof will be in the pudding.

I want to mention briefly factors beyond control, which have been talked about. Perhaps this is degenerating the debate, but Network Rail has often been called “Not work rail” or “Network fail”. The wrong kind of leaves and the wrong kind of snow—these factors are difficult and I accept that. Extraordinary incidents will happen; for example, burst water mains. Cable theft has been a growing problem. The Government have responded. That response perhaps took longer than everybody wanted, but they have done the right thing in tabling an amendment on tackling metal theft, which will include aspects of cable theft. Network Rail could have done more itself to assess the security of its own lines, whether through technology, or through the good old-fashioned use of people to check what is going on. Indeed, Mr Ward suggested to me that he is spending £2 million on security patrols to try to ensure that such theft does not happen, or at least that it is reduced, and I welcome that.

I also want to mention two Members who cannot be here today. My hon. Friend the Member for Ipswich (Ben Gummer), who also helped to secure the debate, is opening the wing of a hospital, or something like that, in Ipswich. I pay tribute to his relentless work in trying to improve and secure investment for the greater Anglia area. My hon. Friend the Member for Witham (Priti Patel) has already spoken about the challenges for that line, so I will not repeat them. My hon. Friend the Member for Ipswich has also been working with my hon. Friend the Member for Norwich North (Miss Smith) on the Norwich in 90 and the Suffolk in 60 campaigns, bringing together MPs from across all three counties to ensure that we get a better service.

The other hon. Member who cannot be here is my hon. Friend the Member for Lincoln (Karl MᶜCartney). He also has to meet constituents today, and he wanted me to plug the fact that he is fed up with Network Rail. Anyone who has ever been to Lincoln will know that the railway line dissects it. He believes that the latest proposals for freight will mean that the level crossing will be closed for 40 minutes in every hour in daylight hours. He does not think that that is acceptable, and that is a fair point.

On issues of cost and time, we have heard some interesting ideas about what the right thing to do is. Is the right thing to go back to integration, or is it to introduce more competition? My first interaction with Network Rail came about after we lost the hourly service, which had been agreed before I became the Member of Parliament. Passengers had to change trains—there was no through train all the way to Lowestoft and they had to change at Ipswich. That meant that passengers who were not so mobile, or those with heavy luggage, had to be escorted across the tracks. On a very tight connection time of perhaps less than six minutes, that did not always feel very safe or ideal. In fact, passengers ended up going outside the canopy and out into the open elements. Wet or icy weather added to the problem.

Network Rail was supposed to build a footbridge and lifts. It did so, but they were several months late and cost £2.7 million. I understand that £1 million a lift is the going rate, which leads me on to a general point. Everything from Network Rail seems to be costed in units of £1 million: do we want a level crossing? “Yeah, that will be £1 million.” A new academy school building is being built and more children will use a particular route on the way to school. Network Rail has lodged an objection in respect of Runnacles Way, because children walk across there. A bridge is required, which might cost £1 million, or it might cost £2 million. Meanwhile, someone who has been doing some contracting work for the Environment Agency—which used to have the same problem in my view; everything was very expensive—reckons that he can build the bridge for approximately £150,000.

We should not accept that everything costs £1 million or more. That is why I was encouraged by the changes—I think it is called the devolution principle—that allow directors to take control of their regions. The Network Rail group that currently does a lot of small projects will be opened up. Pilots are being conducted to find out whether other firms can bid for tender. Indeed, Abellio, the new franchisee that comes online within the week, has said that it would strongly consider doing that; it does maintenance projects in the Netherlands. That presents an opportunity, but without the complexity that adds cost through procurement, as the hon. Member for Luton North (Kelvin Hopkins) said. However, we need to do something about value for money. We should not accept that the cost of everything is in units of £1 million. Network Rail pulled its finger out with the floods in Cumbria and rebuilt a station in three days, which was fantastic. I would love to see that happen everywhere.

[Kelvin Hopkins]

The hon. Lady is making a strong point about cost. British Rail used to have cash-limited projects that worked within cash limits. The engineers and the directly employed people said, “How do we do this as cheaply as possible? We have to work within the cash limits and we want to do the best job possible.” That actually worked, and is one of the reasons why cost was low in BR’s day.

[Dr Coffey]

The hon. Gentleman has more experience than me on those matters. Some interesting ideas are coming out today—I am sure that the Minister will take note of them—about building not just to spec, but being part of the design solution, and about other activities being constrained within a budget.

I should like to thank Network Rail, Suffolk county council and the Government for putting aside the money to ensure that we get the Beccles loop, which will reintroduce an hourly service all the way through to Lowestoft, as opposed to our only getting trains every two hours beyond a certain point. That improvement should be in by the end of this year.

Level crossings are a big challenge in my constituency. I respect the ambition of the hon. Member for Hayes and Harlington (John McDonnell) to see no level crossings at all, but I do not believe it is feasible. I live in a rural area with nine stations and 50 crossings, but many of those are bridges built a long time ago, back in Victorian times. Of the 27 level crossings in my constituency, only 11 have automated barriers. Eight have to be opened by hand. People drive up, get out of their car and walk to the gates, use the phone, open both gates, drive over, and then come back and close the gates. Those are the examples we could find; we have been doing a bit of research. I have used such a crossing and, as hon. Members can imagine, I have avoided using that route again.

In eight places there are just lights, with no barriers at all. Two of those are on A roads, one with 15,000 traffic movements per day. There have not been that many accidents, but I am not sure whether that is due to the design or people’s patience. It is such a crossing that I have been chasing Network Rail about—the one that will cost £1 million for installing two barriers—and I am delighted to say that I was told that it would be done by 2013. I am delighted that Network Rail has committed to doing that, but its challenge is to try to do that more cheaply. I want the response paper to contain something about how we are going to tackle some of those matters. The example that I have mentioned is not the only level crossing that is needed.

In a rural area, I would rather have routes than roads blocked off. If there were an insistence on there being no level crossings at all—just an underpass or bridge—quite a lot of mobility within rural areas would be compromised. It is about taking a risk-based approach and seeing whether we can do something about some of the crossings where people have to get in and out of their cars, and so on.

I welcome the change in who can bid for work, which will be piloted. I understand that Anglia will be part of that pilot. However, it is critical that there is transparency. I want Network Rail to report on how many projects are internal and external. Starting to show value for money and the percentage, or value, of work being done externally would be a useful barometer.

[Mrs Main]

My hon. Friend is making a powerful speech. When I was looking to research this debate—I did not want to get too involved—I was amazed, in respect of contract tendering, that Network Rail’s costs for a job seem to be padded out with all the worst-case scenarios and it comes up with a massive figure and adds a bit on top for good luck. If everybody operated like that, nobody would be awarded the tender. Network Rail would be forced to produce a better set of figures if others were allowed to tender as well.

[Dr Coffey]

My hon. Friend makes another important contribution. I worked at the BBC for a short while, so I recognise that contingency can be a big part of any project cost. I also recognise that things sometimes go wrong and that people have to react quickly. I mentioned earlier an analogy with the Environment Agency. Some works were done by the internal drainage board. Funnily enough, the framework contractor for the Environment Agency cost about three times as much as other contractors. We do not want to fall into the trap of—I had better use my words carefully—the establishment figures being the only ones that end up doing the work, because they are almost part of the same circle. I think that that is the best way of saying it.

I welcome the closer collaboration. Abellio will be involved. There is a challenge for the industry. Things are already happening as a result of the McNulty review, before the Government have published the Command Paper. I am delighted about that.

Other things are useful, too, including technology. My remarks at this point may answer some points raised by the hon. Member for Hayes and Harlington, who mentioned checking activity. I understand that things can be added to train roofs so that, instead of a visual check happening however often, a constant check can be made every time a train goes up and down a line. Simple ideas such as that one, which may cost a bit of capital—I get that—will build in some resilience. Instead of people being paid, frankly, to walk up and down—I am not saying that that should be got rid of entirely—such technology could be used to judge more intelligently the schedule of maintenance that needs to be done.

[John McDonnell]

That is exactly what the teams do now. They are not just walking the track; they are mobile and use new technology as well, but even teams that use new technology have been cut back recently.

[Dr Coffey]

I thank the hon. Gentleman for adding that point. Such technology has not been put on to the East Suffolk line and East Suffolk trains, so that is news to me, although clearly not news to him.

Hon. Members have already mentioned the finger-pointing. My hon. Friend the Member for Mid Norfolk (George Freeman) made an interesting contribution about whether alliances are enough or whether there should be mergers in respect of this whole operation, having train and track together. Let us challenge the way that Network Rail is structured and ask whether it is fit for purpose to deliver ongoing improvements and what we need.

On structure and governance, we have already talked about the complex structure that was devised in 2002. The coalition agreement specifically says that it will make Network Rail more accountable to customers. We look forward to the Government’s move on that. It would be useful to do something radical with Network Rail’s board and, instead of the 100 members, move to a 12-person board, for example, with a passenger group focus as part of that. Trying to manage that complexity is difficult. Hopefully, such a new process would allow for more focus.

I call on the Office of Rail Regulation to be focused on that in regulating Network Rail. The possibility of it going into train operating companies and other companies may be in the coalition agreement, but I would rather it stuck to the knitting and got that right before going into other matters. Passengers are clear when they are not happy about services. One way to try to regulate that matter would be to build it into the franchise or something similar.

I encourage Network Rail to stick to what it is good at doing. I was disappointed to hear—it has gone off the idea, thank heavens—that it considered setting itself up as a broadband operator. It is a clever idea to use things alongside the tracks to carry fibre, and similar, but the thought of its being in competition with BT Openreach was bizarre. Working with somebody who knows something is fine, as is becoming a conduit, but thankfully the idea that it would be the rival to BT Openreach went away.

Why am I interested in freight? Felixstowe, the leading container port, is in my constituency. It has rail terminals and a new one is going to be built. Putting freight on to rail is an important part of trying to reduce the percentage of freight on our roads. The Government are keen to do that, because it is good environmentally and it reduces demand on the key arterial roads throughout the country.

I encourage Network Rail to work with Hutchison at the port of Felixstowe so that it puts dualling in earlier. Due to the economic challenges that Hutchison said it was facing, it secured permission from Suffolk Coastal district council to delay that activity and had its planning permission extended, but it would make sense to do it now.

Some work has already been agreed—certainly, the consultation is starting—on the Ipswich chord, which, for hon. Members not familiar with Suffolk, would just add a bit of extra track, but means that, instead of many freight trains going into London and then out again to get to the north, those can go straight up towards Nuneaton. That makes a lot of sense and will free up a lot of capacity. To give Members a view of the costs, a 1 km stretch of track will be £41 million. Admittedly, that is not only for the steel on the track but for all the complexity of the other aspects. That is another example of the eye-watering amounts of money required for what one would like to think of as straightforward—perhaps I should not say that—key projects.

I also put in a bid for work at the Ely North junction, which would help freight traffic as well as certain passenger routes. Network Rail has a tough time with freight when connecting seaports; if Felixstowe or Liverpool close down, because of wind, rough seas or whatever, there is a bit of a problem. Dare I say it, however, the Network Rail people are paid a lot of money to solve difficult problems, so they must build that resilience into their timetabling and capacity building. The answer is not to do what happened to my hon. Friend the Member for St Albans, who suddenly had half the number of trains, because that is not acceptable.

Network Rail is a fascinating organisation. It is a case study of what can go well and of what can go wrong. However, the constituents of Suffolk Coastal and, more broadly, people throughout the country are fed up of being left waiting. It is vital that the Government grab the chance offered by the McNulty review and the Command Paper to put passengers and businesses first. Network Rail can be made to work, potentially, but the proof will be in the pudding, and I suggest to Sir David Higgins that, if we do not see much change within another year, we must question whether he has the capacity to make the changes necessary.

I thank all Members who have spoken so far. My hon. Friend the Member for St Albans will be winding up. I have enjoyed the debate and I genuinely think that there have been some fresh ideas that the Minister will absorb.

National Policy Statement for Ports

Baroness Coffey Excerpts

Thursday 19th January 2012 Commons Chamber

[Dr Thérèse Coffey (Suffolk Coastal) (Con)]

I am pleased to be able to contribute briefly to the final part of a debate on which the House embarked back in November. There could be no better port with which to end it than the port of Felixstowe, which is in my constituency.

I support the Government’s market-based approach to ports, but I want them to receive one message loud and clear, namely that ports should be treated consistently and allowed a level playing field. I believe that the Minister supports that view. Liverpool recently secured £30 million of regional growth funds for help with dredging. I do not resent the recognition that my home city, where I grew up, needs a bit of support to bring about regeneration and create jobs. We must make sure, however, that such—how can I put this?—gifts are targeted so that they do not discourage private investors at other ports around the country.

It is also important that we have joined-up thinking with other policy statements on rail and road. We have some great ports in our country, but we need to ensure that once the containers and so on come off the boats, we have great networks to move the containers around the country.

[Jim Fitzpatrick (Poplar and Limehouse) (Lab)]

I am very grateful to the hon. Lady for giving way. She raised similar points yesterday in Westminster Hall in a debate on the port of Southampton and I was very reassured by the Minister’s comments in response. Was she also reassured?

[Dr Thérèse Coffey]

I was very reassured, but I am merely trying to re-emphasise that we must ensure that Departments work together, whether that means that the Department for Transport works with the Department for Environment, Food and Rural Affairs or with the Department for Communities and Local Government, to ensure that the UK economy as a whole can benefit from fantastic ports. I also support the coastal shipping initiative, which I know my hon. Friend the Minister is championing.

In the adjourned debate, my hon. Friends the Members for Thurrock (Jackie Doyle-Price) and for Dover (Charlie Elphicke) mentioned nature issues and habitat directives. I share many of their sentiments, as we need to have an appropriate balance, but that does not mean that everything should be swept aside. Just next door to my own port is an area of outstanding natural beauty: 1% of the world’s sea pea happens to be right there alongside a heritage asset, a Napoleonic fort. Although we must be mindful of the need to ensure that such things do not get in the way of port development, successful ports can have both. In fact, birds are attracted to the cranes and so on, so the area has become a rather distinguished twitching zone where people can go and spot rare birds.

I want to emphasise today the significant concerns about the implementation of marine conservation zones and reference areas. Those are new ventures for our country and although I am not against them at all, we hear that DEFRA and Natural England want to work with existing businesses but are very quiet when it comes to talking about new business and replacement activities.

We have great champions for shipping in the Minister and in the shadow Minister, as I know from his previous service. Long may that continue, because ports are what keep this country going.