HC Deb 01 July 1991 vol 194 cc2-4
2. Ms. Quin

To ask the Secretary of State for Transport if he will make a statement on the implementation of his objective of transferring more freight traffic from road to rail.

The Secretary of State for Transport (Mr. Malcolm Rifkind)

I recently announced an improved environmental grant scheme to help pay for rail freight facilities that will keep lorries off unsuitable roads. I plan in due course to end British Rail's monopoly by opening up the railways to other operators who want to provide rail freight services and I am giving full support to BR's plans for channel tunnel rail freight services which will remove some 400,000 lorry journeys from our roads each year.

I am pleased today to announce that I have approved British Rail's investment in a further seven new locomotives for channel tunnel freight services, costing some £20 million.

Ms. Quin

Does the Secretary of State agree that the Government's objective of moving freight from road to rail will be meaningless without increased funding? Does he deplore British Rail's decision to refuse to allow a channel tunnel freight facility in the north-east of England? Will he take this opportunity publicly to express regret for the 12 years of wasted opportunity when the Government could have promoted the cause of the railways, but singularly failed to do so?

Mr. Rifkind

British Rail is authorising some £300 million of expenditure on freight services to service the channel tunnel. It is for BR to decide whether a particular freight terminal in the north-east is necessary. On the latter part of the hon. Lady's question, one recalls that investment in the railways fell during the previous Labour Government while it is higher today than at any time since Dr. Beeching.

Mr. Adley

While wholeheartedly welcoming the recent policy change announced by my right hon. and learned Friend and hoping that the thought is father unto the deed in respect of new investment in the railways, may I ask my right hon. and learned Friend to contemplate the proposition that our industrial competitors in the Community are running new stock on new railways while our investment goes into providing new stock for Victorian railways? Will my right hon. and learned Friend therefore look at what the west Germans are doing, particularly the government railway commission which was set up by Chancellor Kohl, and examine infrastructure and investment so that we can begin to get a level playing field for investment in roads compared with rail?

Mr. Rikfind

I am most interested in what is happening elsewhere in the European Community. I was particularly delighted that, at the previous meeting of the Council of Transport Ministers, the European Community accepted a British-inspired initiative which, for the first time, will ensure the opportunity for competition in the provision of international freight services throughout the Community. For the first time in our history it will be possible for British Rail operators to provide international freight services to other countries of the Community as a matter of right. I hope that the Opposition, who until now have preserved and been enamoured of British Rail's monopoly, will realise that Europe as a whole has rejected monopoly and is welcoming competition.

Mr. Prescott

How can the Secretary of State justify his recent statement about being enthusiastically and unequivocally in favour of the movement of freight from road to rail when this week he will be responsible for closing Speedlink to save £30 million, thereby putting many thousands of loads on to the roads, particularly the A1, and when he is about to spend £800 million to widen the A I to deal with extra loads?

Mr. Rifkind

The hon. Gentleman is characteristically wrong both in his facts and his interpretation. First, Speedlink is a decision for British Rail. Secondly, this year, it expects, on a total turnover of £45 million, a loss of about £40 million. If the hon. Gentleman would maintain a business with that sort of loss, it shows why he is unfit to he put in charge of the affairs of this country. Thirdly, the hon. Gentleman seems to be completely unaware that British Rail has already negotiated for more than half its Speedlink traffic to continue to be carried by rail by other means.

Mr. Harris

Although I accept my right hon. and learned Friend's latter point about Speedlink, does he agree that it seems to many of us that British Rail has almost deliberately run down its freight services, particularly in areas like mine in Cornwall? Over the weekend, for example, a haulier rang me about the closure of the Speedlink depot in Truro which serves a large part of Cornwall. Is not the British Rail approach to business summed up by the train on which I travelled from the west country today? It set off from Plymouth with only eight sandwiches in the refreshment car. Is not exactly that approach being applied in some other parts of British Rail's business, not least freight?

Mr. Rifkind

My hon. Friend is correct in emphasising that there seem to be occasionally missed opportunities for British Rail, particularly in the west country which he represents. It is for such reasons that we are committed to ending British Rail's statutory monopoly in order that new rail operators, including Foster Yeoman in the west country, can provide the rail services, particularly rail freight services, that they believe to be necessary. It is a matter of great sadness that the hon. Member for Kingston upon Hull, East (Mr. Prescott) and Mr. Jimmy Knapp appear to be the last two petrified fossils in Europe seeking to preserve that monopoly when all of Europe is now rejecting it.