East Coast Main Line Investment — [Albert Owen in the Chair]

Part of the debate – in Westminster Hall at 2:30 pm on 17 October 2018.

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Photo of Catherine McKinnell Catherine McKinnell Labour, Newcastle upon Tyne North 2:30, 17 October 2018

I absolutely agree with my hon. Friend, and I have huge respect for her grasp of detail as Chair of the Select Committee on Transport. I thank her for her support in this debate. She has highlighted some of the issues specific to the north-east, whereas I have been working hard to speak for the whole east coast main line route and make the case for it as national infrastructure, but I agree with what she has said and I am grateful to her for putting on the record some stark figures that need to be addressed by the Government.

Going back to the Government’s surprise announcement of £780 million of investment, somebody considerably more cynical than me might suggest that the timing and content of that pledge was more to do with the Cabinet’s visit to the north-east that day and the pressing need to announce something north-east-friendly. Indeed, they do need more north-east-friendly announcements; my hon. Friend Lilian Greenwood has pointed out the disparity in the investment that goes into the region. That concern is possibly backed up by the fact that it took several days for the Department for Transport to confirm what the funding would be used for. However, as was eventually confirmed in writing following the Minister’s attendance at the all-party parliamentary group on the east coast main line, it is intended that this control period 6 investment will include power supply upgrades between Doncaster and Edinburgh, a new junction near Peterborough, a new platform at Stevenage, and track layout improvements at King’s Cross—improvements that are mainly paid for by necessary maintenance and renewal expenditure.

Let me be clear: any investment in the east coast main line is welcome, given the scale and nature of the improvements required. However, the Minister will also know that Network Rail published its east coast main line route study covering the section from London to Berwick-upon-Tweed, which contained a long list of potential investment projects or investment opportunities that would deliver much-needed improvements to the east coast main line. Most have been known about for some time and have been mooted repeatedly, including some that have not been delivered in Network Rail’s control period 5, 2014 to 2019. The Consortium of East Coast Main Line Authorities estimates that the route requires at least £3 billion of investment to fulfil Network Rail’s proposals, but there is no indication of where the remainder of the funding to pay for these projects will come from, either via Government funding or third-party investment. Meanwhile, Network Rail’s renewal and maintenance fund for control period 6, 2019 to 2024, is barely enough to stand still, replacing items on a like-for-like basis.

I acknowledge that, as is made clear in Network Rail’s route study, “recent rail industry developments” have seen a shift away from the historical model of railway infrastructure improvements being provided and funded centrally, via national Governments and Network Rail raising capital against its asset base. However, as a reclassified publicly funded body, Network Rail can longer finance enhancements through financial markets. A welcome devolution of funding and decision making on transport infrastructure means that more local, regional or sub-national bodies—such as LEPs, combined authorities, and Transport for the North—have been tasked with defining the railway needs in their area and applying for Government funding or attracting third-party investment. However, the Network Rail east coast main line route study states:

“Overall, this means that improvements in rail infrastructure should not be seen as an automatic pipeline of upgrades awaiting delivery;
rather, they are choices that may or may not be taken forward depending on whether they meet the needs of rail users, provide a value for money investment, and are affordable.”

I understand that could mean the Treasury taking final decisions on individual rail improvements in England on a case-by-case basis. I fear that does not bode well for the comprehensive, coherent programme of infrastructure improvements that I and others believe is required for the east coast main line route. To that end, it would be helpful to hear what the Minister’s plans are for working with the Scottish Government to secure that investment right across the line.