Rolling Stock (North of England)

Tom Blenkinsop Excerpts

Wednesday 12th March 2014 Westminster Hall

[Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)]

Thank you, Mr Turner. Given the shortness of time, I will get to the nub of the issues facing my constituents. First, there is the rolling stock. My fear for people in Middlesbrough and the wider Teesside conurbation is that the mainline services that link York with Blackpool and Liverpool will be given priority over the peripheral lines going north. That links into the lack of electrification on the east coast line to the north of Northallerton. Those two issues together cause fear for people in Middlesbrough and the wider Teesside area.

The rolling stock leasing companies are an issue. The TransPennine service was created by the state under British Rail and that model has survived until today, which is testament to its ability to assess the market then and going forward. In November 1995, the ROSCOs were sold for a combined sum of about £1.7 billion and, in 1996, they generated a combined pre-tax profit of £1.8 billion. We have three ROSCOs; one of which, Angel Trains, made a 60% profit in the seven months—

[Mr Andrew Turner (in the Chair)]

Order. I call Andy McDonald.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)]

I thank the hon. Member for Penistone and Stocksbridge (Angela Smith) for calling this debate on an important topic. Much has been made of what I may or may not say today, but I intend to cover directly some of the issues she has raised because the matter is important. Some people have suggested things I may say, but I will answer her questions.

There have been a huge number of contributions and I learned today that brevity is a virtue, and that the hon. Member for Glasgow South (Mr Harris) is a voice of experience and sanity. I always enjoy following the hon. Member for Nottingham South (Lilian Greenwood), who leads for the Opposition. She leaves me in awe of the fact that she can operate in a parallel universe. Is the real failure the 900 miles of electrification that this Government have committed to, as opposed to the nine under her Government, or is it the 11% rise in fares that would have happened had her Government been in power today?

I had an opportunity yesterday, during a Westminster Hall debate, to pay tribute to Bob Crow and to send condolences on behalf of the Government to his friends and family. Whatever our political differences, he was a doughty defender of his members and of safety standards, and I am pleased to reiterate that today.

I understand the frustrations that have been expressed today, but there must be recognition, as there was from some hon. Members, about the contribution and huge investment going into the north of England. The north of England investment plan will see £1 billion invested to improve services, to increase capacity and to ease overcrowding over the next five years. That massive investment will see electrification of the north-west triangle between Manchester, Liverpool and Wigan. The TransPennine route between Manchester and York via Leeds will also be electrified. Capacity improvements are being delivered between Manchester and Sheffield via the Hope valley line and the Chat Moss line between Liverpool and Manchester. Construction of the Ordsall chord will enable trains to run between Manchester Piccadilly and Manchester Victoria stations.

[Tom Blenkinsop]

Will the Minister give way?

[Stephen Hammond]

I will not give way, because I have only eight minutes.

Line speed improvements will be made on routes including those between Manchester and Sheffield, Manchester and Preston, and Manchester and Bradford. Whatever anyone says, that is a huge investment in the area. It is estimated that the wider economic benefits to the region will be more than £4 billion and have the potential to create 20,000 jobs. The Government are investing in the north of England. However, all those projects have an impact on rolling stock decisions and we are taking a broader look across the country to see why some of the problems—I accept that there are problems—have arisen. The significant steps that we are taking towards electrification throughout the country, including in the north, undoubtedly means that the rolling stock market is preparing to invest heavily in electric units. There is less demand for diesel units, and there is a short-term mismatch.

Everyone agrees that electrification will help to transform the railways by introducing faster, greener and more pleasant vehicles. It will also set up the opportunity for cascades of newly run-in and refurbished stock to other parts of the country to meet rising demand. Moreover, it is not just investment in infrastructure that will make a difference to services in the north. The intercity express programme is a major investment in rolling stock that will bring benefits to regions throughout the country and faster journey times both north and south. The programme will create new jobs in the north and will be fully implemented by 2020. The first trains being built at Newton Aycliffe by Agility Trains will bring about more reliable services. That context is important and shows the huge investment that is taking place.

I will now respond directly to some of the questions that have been asked today. The issue with the TransPennine rolling stock relates to nine Class 170 trains, which comprise 18 rail vehicles—not a higher number. Those vehicles are equivalent to approximately 9% of the total fleet. The lease for those trains expires in 2015, which is the end of the current franchise.