[Mr Peter Bone in the Chair]
11:55 am
My hon. Friend
It is a pleasure to serve for the first time under your chairmanship, Mr Bone, and I, too, congratulate my neighbour and hon. Friend
Commuters have suffered from lack of reliability on the service. My constituents who use the railways in East Anglia tell me that if they could have one thing, it would be a more reliable service that does not break down but ensures that people get to where they are going on time. That is vital for businesses and for each and every passenger on a daily basis. The lack of reliability on railways in East Anglia has undermined the service that they provide to their passengers. At the heart of the prospectus launched this week is a request that before we see increases in speed, reliability of the service must be the priority.
A key part of improving reliability involves improving capacity, and the prospectus rightly outlines the need for additional track capacity, particularly on the great eastern main line. As my hon. Friend
debate, we must ensure that businesses are supported correctly and that more track capacity is freed up on the Felixstowe to Nuneaton freight rail link, which is an important part of this debate. As the prospectus highlighted, if we want to support businesses in East Anglia, a first-class rail link between the midlands—one of the manufacturing engine rooms of the British economy—and Felixstowe, which takes 46% of the UK’s container traffic, is vital.
Furthermore, in terms of the passenger arguments that we are advocating today and the increased reliability of service, it is not desirable for freight to travel from the midlands into London and then back out, as happens at the moment. That slows down the passage of freight and is bad for business, but it also clogs up passenger capacity on the lines, which would be much better used to support improved reliability—a more reliable passenger service. Therefore, a key part of the rail prospectus is about ensuring not just that business is supported through the Felixstowe-Nuneaton freight rail link, but that there is recognition of the importance of that link to the passenger service. I am talking about the freeing up of passenger capacity on the rest of the rail network in East Anglia and particularly on the great eastern main line.
The primary issues are reliability of service and capacity, but it is also desirable to increase, where possible, the speed of service. However, we will get a faster service only if we deal with reliability and capacity as the first priorities. Reliability and capacity improvements will of course lead to greater train speed. If we want to achieve Norwich in 90, Ipswich in 60 and all the other key considerations, the only way we can do so is by focusing on reliability and capacity of service.
All the MPs present at the debate are very grateful for the support that the Department has given us in our fight for improved rail services in our own constituencies, but all of us are also aware that the issue is much bigger than any individual station or branch line. It is about improving the overall reliability and capacity of the service in East Anglia, with a focus—a laudable focus—on the great eastern main line as the primary driver for delivering that. I thank my right hon. Friend the Minister for her support for all that we have been doing. I again commend my hon. Friend the Member for Suffolk Coastal for securing the debate. I look forward to the Minister’s supportive comments when she responds to it.
Ben Gummer (Ipswich, Conservative)
Very timely. It is a great privilege to be able to contribute to the debate. I apologise for having come to it a little late; it clashed with a sitting of the Select Committee on Justice.
This is a very important week for the railway in East Anglia.
Elizabeth Truss (South West Norfolk, Conservative)
Does my hon. Friend agree that the launch that took place yesterday at Liverpool Street station showed the sense of purpose of all the MPs of East Anglia in putting their names to a new manifesto,
and does he think that that should be taken very seriously by the Department for Transport when it is considering our overall national transport strategy?
Ben Gummer (Ipswich, Conservative)
I agree. My hon. Friend will know and I am sure that you, Mr Bone, will know very well that that sense of purpose is unusual in the east of England. When first the railway was driven up to Norwich, the good people of Norwich tried very hard to ensure that it did not go through Ipswich. They preferred a route that went via Cambridge. In the end, they got something approaching both. At that time, the town and the city were at war with each other for the privilege of having the railway. Happily, sense prevailed, but such was the animosity during that period—there is a serious point to this—that the quality of the infrastructure laid down suffered; investment was not forthcoming because there was no political direction to facilitate the backing required. That is why only two lines go between Chelmsford and Ipswich and then from Ipswich to Norwich. The result of that and the rather substandard nature of the track itself in places is that it has never fulfilled the desires and wishes even of the Victorian builders. We have constantly had to catch up since in terms of infrastructure improvements.
We start, therefore, from the position of having a poor railway in our region. It has had running repairs and second-hand rolling stock at every point; it has never had new rolling stock, apart from at its inception in the 1830s and 1840s. That is why all of us coming together as Members of Parliament, county councils, borough councils and local enterprise partnerships across the region is so important. We have established that sense of purpose with a view to obtaining what is a rather modest amount of investment compared with other infrastructure projects across the country.
I impress on my right hon. Friend the Minister both our unity and the fact that what we are asking for is very small compared with the release of economic growth and the possibilities for jobs and prosperity that the investment would give our region. I was not here earlier in the debate, but I am sure that the issue has been brought up. All of us have a vision not just for the railway, but for our region as a whole. It should be the California of Europe. It has a knowledge base that is certainly comparable with that in California, if not greater. It is a place where people want to live; it is a very attractive place in which to live and work. It is also close to the largest finance centre in the world. There is no reason at all why the eastern region should not achieve double-digit growth.
The reason why we are so keen to see that growth is that it will unlock potential for our constituents, especially those in certain areas. In our region—you, Mr Bone, will see this in your own constituency—there are significant pockets of severe deprivation, some of which are in my constituency. If we are to offer the people living there the opportunities that the Government are keen to extend to larger areas of deprivation in London and the north and in the nations of Scotland and Wales, we should also consider areas that may be smaller but suffer from similar levels of deprivation and require the assistance that the Government can provide in terms of investment.
George Freeman (Mid Norfolk, Conservative)
Does my hon. Friend agree that as well as the importance of the commuter lines down to London, the regional links, not least between Ipswich,
Cambridge and Norwich, are very important? We could combine Cambridge’s bioscience and digital and Norwich’s agricultural science, cleantech and food and medical science with Ipswich’s wonderful West Suffolk college and the Martlesham BT digital centre of excellence. If we put those together, we would build a very powerful triangle of innovation, to the benefit of all the villages and towns in the area.
Ben Gummer (Ipswich, Conservative)
I entirely agree. It is remarkable—a wonder—to see what has been achieved in Cambridge. It is remarkable also to see what is happening in Norwich—20 years of life science investment and innovation coming right. That is why it is so exciting to see some of the incipient projects in Ipswich. I was at University Campus Suffolk a few weeks ago to hear about some of the joint research projects that it is undertaking with significant universities around the country. It is a brand-new university—the youngest in the country—and it is already doing exciting advanced research. Some of the research, as my hon. Friend will know, involves geriatric science and the life sciences connected with that.
In Ipswich, there is an incipient life sciences industry, based around the largest software research centre in the country—Martlesham, just outside Ipswich, in the constituency of my hon. Friend Dr Coffey. Together with a very significantly growing food and drink sector and a large tourism sector in the county as a whole, it should contribute to remarkable growth, which could be released to the UK economy. East Anglia is already one of only two regions that are net contributors to the UK economy. Its contribution could be made even more significant.
Elizabeth Truss (South West Norfolk, Conservative)
We hope soon to get the Cambridge Flyer extended to King’s Lynn and Norwich. Does my hon. Friend agree that if there was a train like the Cambridge Flyer to Ipswich—the Ipswich Flyer—it would help to drive growth in a similar way to what we have seen in Cambridge?
Peter Bone (Wellingborough, Conservative)
Order. Before the hon. Gentleman replies, I remind the Chamber and people who may have arrived late that the winding-up speeches are to start in about a minute’s time. The hon. Gentleman might like to bear that in mind.
Ben Gummer (Ipswich, Conservative)
Thank you for your guidance, Mr Bone. I am glad that I have no more than a minute left to contribute to the debate.
I will make one final point because I agree with every point my hon. Friend Elizabeth Truss made. It is important that the line from Ipswich should benefit towns nearby, such as Colchester, and continue across the east-west link, from Cambridge to Bedford and thence to Oxford, creating an arc of knowledge across the country.
The Minister knows that travellers in East Anglia pay some of highest premiums in the railway industry. That money goes out of the region to subsidise loss-making lines elsewhere. We need to retain some of that money to invest in our area. It is only right that our constituents—
not only the fortunate and well-off, but those who lack opportunities—can retain a bit more of that investment in our area, so that we can improve our rail links and make the contribution to our local, national and European economy that we aspire to make.
Lilian Greenwood (Nottingham South, Labour)
It is a pleasure to serve under your chairmanship, Mr Bone. I am sorry that Mr Hollobone had to leave, because I know that we share a particular interest in rail investment.
I congratulate Dr Coffey on securing the debate and co-ordinating it so well with the publication of “Once in a generation—A rail prospectus for East Anglia”. She made an eloquent case on behalf of her constituents and the wider region. There may be competition for the title of the Cinderella of the railways—I am thinking of my midland main line—but the importance of improving Ely North junction has been put across strongly today.
The prospectus is a substantial document that presents strong arguments for future transport investment in East Anglia. I congratulate those involved in producing it. The east of England needs and deserves better transport links, particularly given the anticipated population growth, which hon. Members described. As a shadow Transport Minister, I welcome the prospectus’s publication, and I hope that it receives a sympathetic hearing within the Department for Transport. I look forward to the Minister’s response.
As many have said, the east of England is a net contributor to the Treasury, and better transport links could enhance that contribution. The prospectus reveals the patchwork of provision across East Anglia. Too many lines suffer restrictions on capacity, with passenger numbers on the west Anglia route alone expected to increase by 42% by 2021, leaving 59% of trains overcrowded. With the Government set to allow fares to increase by up to 11% next year, passengers expect and deserve better. As the hon. Members for Suffolk Coastal, and for Central Suffolk and North Ipswich (Dr Poulter), rightly said, improving links to Felixstowe is vital for the expansion of rail freight, and to reduce congestion on the roads, cut carbon emissions and free up extra capacity for passenger services.
The proposals set out today would strengthen East Anglia’s vital economic links to London, but the document’s ambition does not stop there. The previous Government undertook improvements to lines and stations between Oxford and Cambridge, and the prospect of a reopened and revitalised varsity line is worth looking at in detail. The prospectus also presents a strong case for looking at modernisation of stock and track, including electrification, in East Anglia.
There is a compelling case for investment that meets local need and supports wider economic growth. The hon. Members for Witham (Priti Patel), and for Colchester (Sir Bob Russell), made a strong case on behalf of Essex and its potential for generating jobs through inward investment and business expansion. George Freeman set out clearly how Norfolk and East Anglia can contribute to sustainable growth if properly linked to key centres, including the City of London. Perhaps next time I am on a windy Norfolk beach, I will try to remember that
East Anglia is the California of Europe. Ben Gummer made an important point about the development of high-tech industries in that part of the country, particularly around Cambridge.
I agree that better infrastructure is needed to drive up passenger satisfaction rates, which are the lowest in the country. Unfortunately, I am concerned that Government policy may end up holding the proposals back. Labour Members have supported £528 million of efficiency savings in rail, but the Government have pushed ahead with a further £759 million cut to capital spending.
Bob Russell (Colchester, Liberal Democrat)
Will the hon. Lady briefly spell out all the improvements that the Labour Government made to the rail infrastructure in East Anglia in their 13 years in power?
Lilian Greenwood (Nottingham South, Labour)
Labour took action in government, and I am happy to say that transport spending in the eastern region increased in real terms during our time in power. In our last year in office, it stood at £1.494 billion, but I do not deny that a new approach is needed. That is why I will set out our proposals for a real devolution programme with transparent and fair regional funding. Unlike the Government’s proposals on devolution, ours include democratic accountability.
The prospectus makes a powerful case for investment in East Anglia’s rail network, but Government cuts have made it less likely that the funding will be found.
Theresa Villiers (Minister of State (Rail and Aviation), Transport; Chipping Barnet, Conservative)
It is simply not true that the Government are slashing spending on our railways. We have embarked on the biggest programme of capacity expansion in the rail network since the Victorian era. The hon. Lady should get her facts right.
Lilian Greenwood (Nottingham South, Labour)
I am sorry that the Minister felt the need to spell that out, because she is wrong. She is cutting money from planned rail investment, and there will be an impact when hon. Members seek investment. I look forward to hearing what she has to say on the high-level output specification and what it means for not only East Anglia, but other parts of the country.
The hon. Member for Suffolk Coastal has said that she was reassured that
“it is not on the Government’s Agenda to reduce passenger rail services.”
She will surely hope, therefore, that the Government do not follow the model they adopted when they issued the west coast invitation to tender. The document allowed bidders to reduce daily stops at stations by up to 10%. Any reduction in service would be compounded by the McNulty report’s ticket office closures in the counties represented here today. Colchester Town in Essex, Thetford in Norfolk, and Whittlesford Parkway in Cambridgeshire, to give just a few examples, all face having their staff withdrawn. I am sure that the hon. Lady, having secured the debate, will also put pressure on her Government to ensure that existing services in East Anglia are protected. [ Interruption. ]
Passengers are already feeling the pinch. Services are overcrowded, and the Government have decided to increase fares by 3% above the retail prices index for the remainder of the Parliament. They have also given train operating companies the freedom to average out the
rise, leading to fare rises of up to 11% next January. When personal and family budgets are under great pressure, with some commuters paying as much as £4,000 or £5,000 for their annual travel, the Government should be on the side of East Anglia’s commuters, not vested interests in the rail industry.
[
Interruption
.
]
Peter Bone (Wellingborough, Conservative)
Order. If Mr Shelbrooke wants to intervene, would he mind standing, rather than grunting from a sedentary position?
Lilian Greenwood (Nottingham South, Labour)
Thank you, Mr Bone.
It is regrettable that the Government have added to the uncertainty about the future of East Anglia’s rail network. When National Express ceased to operate East Anglia rail earlier this year, the Government should have entrusted the franchise to public ownership through Directly Operated Railways, thereby providing stability in the run up to the Olympics. A two-year private tender with no long-term security or incentive for investment was not the solution East Anglia needed.
The Government’s tendering process in East Anglia also raises questions about their commitment to devolution. It is clear from the prospectus, and hon. Members’ contributions today, that there is local appetite for greater involvement in guiding infrastructure spending and delivery in East Anglia. We, in Labour, wish to promote that spirit by working more closely with local authorities to deliver a better transport system. The Government have already entered into negotiations with transport authorities in the north of England on potentially devolving responsibility for railway operations in that region. Why not do the same in East Anglia?
I urge the Government to listen to the calls in the prospectus to strengthen transport links to Stansted airport. Half of all passengers arrive at Stansted by public transport—the highest proportion for any major airport in the UK. Better transport links could help to free relieve airport capacity constraints in Greater London without the environmental costs associated with other proposals. The Government are locked in distracting internal arguments on Heathrow expansion and fantasy islands in the middle of the Thames, but would it not be better to listen to those arguments instead?
In conclusion, I welcome the publication of the document and the spirit in which it was compiled. We want closer working between local authorities and other representatives, and we would back them with genuine devolved powers over transport spending. Discussions with the Department for Transport must now begin. There are many other worthy projects to consider at a time when capital budgets have been cut too far and too fast. Nevertheless, the report’s authors must be commended for the case that they have made on behalf of East Anglia, and I wish them all the best in their endeavours.
Theresa Villiers (Minister of State (Rail and Aviation), Transport; Chipping Barnet, Conservative)
I join other hon. Members in congratulating my hon. Friend Dr Coffey on securing the debate and providing a timely and valuable opportunity to discuss the future of rail services in East Anglia. I take on board the points that many of my hon. Friends made about the unity behind the prospectus that was published yesterday.
I am well aware that regional rivalries go back to before the time when Boudiccan hordes burned down Colchester, so it is no mean feat to unite Essex, Suffolk and Norfolk, and the whole of East Anglia.
We fully recognise the importance of good transport links in East Anglia; that is why the vital dualling of the A11 got the go-ahead. My hon. Friend Elizabeth Truss and others were right to highlight the importance of housing growth and the provision of infrastructure to support it. My hon. Friend George Freeman, with his characteristic insight, analysed the economic benefits of transport improvements and the potential for expanding life sciences in East Anglia. Like everyone else on the coalition side of the House, I acknowledge the importance of getting the cost of running the railways down, so that we can take the pressure off fares and respond to the kinds of points that have been made by several hon. Members, including my hon. Friend Priti Patel.
Punctuality and reliability, which are obviously crucial, were raised by my hon. Friends the Members for Suffolk Coastal, for Witham, for Central Suffolk and North Ipswich (Dr Poulter), and for Ipswich (Ben Gummer). The period of poor service that came about with the start of the franchise was very unfortunate. Abellio has apologised to its customers. I am hopeful that lessons have been learned. Performance has improved significantly since a problematic start. I welcome the collaborative work that is now under way between Abellio and Network Rail, with a view to improving infrastructure performance and ensuring that possessions are managed more efficiently.
The resilience and reliability of the infrastructure remains a concern. I have no doubt that the rail regulator will continue to scrutinise Network Rail’s record and press for improvement. Network Rail is, however, working hard to address the problems, with a major renewal of the overhead line equipment, which has been one of the greatest sources of vulnerability over recent years. The Government are also taking action to crack down on cable theft, which Network Rail highlighted for me as a key problem for the reliability of the network.
Improvements are on the way. Parts of the east of England will benefit from Thameslink. Others, in Essex, will benefit from Crossrail, as we have heard. The work on Beccles loop is happening, thanks partly to support from Suffolk county council. I recognise the aspirations for progress on the western section of East West Rail, and the possibility of a future link between Cambridge and Oxford. Of course, progress is being made on the central section, which we hope will provide momentum for further progress. I agree with my hon. Friend the Member for Central Suffolk and North Ipswich on the crucial importance of upgrading freight connections, particularly between Felixtowe and Nuneaton, to ensure that we relieve pressure on the roads by providing an attractive freight alternative on the rails. The Government are committed to continuing to invest in improving our railway’s capacity to take freight.
The extent to which we can fulfil all the aspirations that have been talked about today, and to which we can achieve goals of the kind set out in the prospectus, will depend on the funds available, and, of course, a careful assessment of competing priorities around the country. I got the message loudly and clearly—
Peter Bone (Wellingborough, Conservative)
Order. On the point about loudly and clearly, it would help if the Minister faced forward, so that the microphone could pick up what she is saying.
Theresa Villiers (Minister of State (Rail and Aviation), Transport; Chipping Barnet, Conservative)
Thank you for that steer, Mr Bone.
Later this month, we will publish our high-level output specification, to cover what we want the rail industry to deliver in the 2014-to-2019 period. Some of the larger headline schemes are likely to be directly mentioned in the statement, but most of the projects needed to deliver the general outputs that we will set in that statement will not be explicitly listed, so the July statement will not have all the answers on exactly how the benefits of rail improvements will be shared around the country. It will be followed by an industry process to decide which upgrades are needed to deliver the specified outputs, overseen by the Office of Rail Regulation. I assure hon. Members that careful consideration will be given to the points made about the Ely North junction and other improvements today. I should mention that this HLOS statement, like the last one, is likely to contain certain general funding pots that are to be made available over the five-year period, which could be used to support various different schemes around the country, including in East Anglia.
The forthcoming long franchise for Greater Anglia will be important in answering the questions we have heard today. We are granting a longer, more flexible franchise, because we believe that that will give the train operator a stronger incentive to invest in the improvements passengers want, including better trains and stations. We expect the next Greater Anglia franchise to start in the summer of 2014, and to last for up to 15 years. Our reforms to franchising put passenger satisfaction and service quality at the heart of the outputs that we require train operators to deliver. We will work closely with bidders and Network Rail to see how we can maximise the opportunity to integrate decision making more effectively between track and train management—that is another aspiration in the prospectus—and we will also require the next franchisee to introduce ITSO smart ticketing across the franchise.
Ben Gummer (Ipswich, Conservative)
Will the Minister reflect on a comment made by my hon. Friend Mr Yeo—that in essence rail travel has not really changed for the past 50 years? The long franchise gives a tenderer a fantastic opportunity to have a rethink about passengers and how the railway experience works, and to do some innovative things. That can be managed only in the 15-year context that the Government are setting.
Theresa Villiers (Minister of State (Rail and Aviation), Transport; Chipping Barnet, Conservative)
I agree that a long franchise can give many more opportunities for a train operator to innovate, and for us to draw private sector investment into the railways.
We will launch a public consultation on the next Greater Anglia franchise later this year. A detailed business case will be developed, and, drawing on the results of the consultation, we are likely to appraise a range of improvement options. As to what goes into the franchise, I emphasise that we have no plans to remove daytime passenger services from the Felixtowe branch line, which was a matter of importance to my hon.
Friend the Member for Suffolk Coastal. Although Hutchison Ports has proposed the change, it has an obligation under section 106 of the Town and Country Planning Act 1990 to fund the required infrastructure upgrades.
We have heard many other aspirations: there are the half-hourly services called for by my hon. Friend the Member for South West Norfolk, and the specific service changes called for by my hon. Friend Sir Bob Russell. Decisions on those will be made only after the consultation has taken place, but I shall ensure that this debate is fed into the process.
Theresa Villiers (Minister of State (Rail and Aviation), Transport; Chipping Barnet, Conservative)
I am afraid I do not have time; I have only a couple of minutes left.
As for aspirations such as “Norwich in 90”—a campaign for that has been led by my hon. Friend Miss Smith—it is too early to say what the franchise will specify for the train service between London and Norwich. However, in making such decisions we will need to take into account the interests of all the communities on the line, and those who live in intermediate destinations such as Chelmsford and Colchester. Whatever train service we adopt, we shall encourage bidders to put together affordable proposals for improved journey times and a better customer experience.
We did some work on options for Norwich to London before letting the short franchise, and that suggested that spending about £10 million to £15 million on new locomotives and refurbishing existing passenger vehicles would make it possible to save about seven minutes on most trains, and that could be funded in a 15-year franchise from additional revenue. However, that is just one option. We hope that franchise bidders will devise alternative plans that either cost less or produce greater benefits for passengers.
One factor, of course, that bidders will have to take into account is the requirement to make modifications to rolling stock by 2020, to provide proper access for people with reduced mobility. In response to all hon. Members who talked about the state of the rolling stock—some of it is fairly elderly—let me say that there will be changes over the next few years because of the deadline. The decision on whether that will involve targeted improvements, full refurbishment, new rolling stock or a combination of all three lies in the future, but change will have to be made. In the meantime, Abellio is pressing ahead with a deep clean of rolling stock.
In conclusion—