§ 2. Mr. Piara S. Khabra (Ealing, Southall)What is his most recent estimate of the amount of goods transported by rail in 1998–99; and if he will make a statement. [78816]
§ The Secretary of State for the Environment, Transport and the Regions (Mr. John Prescott)The Department's figures for the financial year 1997–98—the last full year for which we have figures—show a 12 per cent. growth in freight carried by rail. That growth continues. In the first half of the financial year 1998–99—April 1998 to September 1998–8.9 billion tonne km of freight went by rail compared with 8.3 billion tonne km over the same period in the financial year 1997–98. That shows an extraordinary increase in the growth of rail freight.
§ Mr. KhabraI welcome the Minister's reply, but what steps is the Department taking to encourage, where possible, companies to use rail instead of road to transport goods? Does he agree that a reduction in the use of roads will help to improve air quality as well as the environment generally?
§ Mr. PrescottIt is our intention, as we pointed out in the White Paper on integrated transport, to achieve a sustainable freight system for air, sea, ship, rail and road. We have outlined some of the policies for that. One of the first things that we did was almost to double the amount of freight grants that were available. We have increased that amount again, and it is being fully used. We have also made grants available to freight integration centres and are improving port facilities. All that has led to the increase, and we look to a further one.
§ Mr. Graham Brady (Altrincham and Sale, West)Does the right hon. Gentleman agree that the welcome increases in rail freight can continue only if there is continuing public support for such increases? In constituencies such as mine, densely populated residential areas are being badly affected by vibration and noise from particular flows of freight. That is undermining public support for greater use of rail freight, which is very bad. In October, I raised this subject with the Under-Secretary of State for the Environment, Transport and the Regions, the hon. Member for Mansfield (Mr. Meale). Will he undertake to have another look at rail freight going to the Brunner Mond plant in Cheshire?
§ Mr. PrescottI always talk to my colleagues about these matters. Any transport matter has environmental consequences, whether it be noise or exhaust emissions. Those are a matter of concern in our comprehensive approach. I am pleased at the growth in rail traffic, which has also occurred through the channel tunnel—much of it due to the changes that we have made in policy. [HON. MEMBERS: "It is due to privatisation."] As for those who shout about privatisation, it was an absolute scandal to give away rail companies and pay £250 million, not for those companies but for their bonus of free travel through the channel tunnel.
§ Mrs. Gwyneth Dunwoody (Crewe and Nantwich)Is my right hon. Friend aware that the Government's 5 excellent work to encourage the transport of freight by rail will be undermined if Railtrack is not prepared to put money into the pinch-points in the railway system that are holding up the movement of goods? Will he take it on himself to have a short, straightforward, Anglo Saxon conversation with the chief executive of Railtrack about the difference between wish-lists, supported by even more Government money, and investment programmes that could be funded by Railtrack's very large profits?
§ Mr. PrescottInvestment is indeed the key. There is not sufficient rail capacity to meet the increasing demands of freight. That is why we have ordered a look at the new rail route to take international carriages, and why we have renegotiated arrangements, which collapsed under the previous Administration, for the channel tunnel rail link. I very much agree with my hon. Friend about wish-lists for investment. As she knows, I have appointed a pretty tough Strategic Rail Authority chairman and a new regulator, who I believe will begin to make a difference in Railtrack's approach to delivering its promises.
§ Mr. Bernard Jenkin (North Essex)Does the Secretary of State agree that we should be doing everything possible to help Railtrack deliver its £27 billion investment programme, which would be the biggest ever investment programme in the railways and the biggest ever investment by a United Kingdom private company? To that end, would not it be sensible to drop the proposal to divert the subsidy from the train operating companies to Railtrack, which exists only to give the Deputy Prime Minister political leverage that he does not require? Precisely who supports his proposal for changing the subsidy arrangements? Does his new rail supremo, Sir Alastair Morton, whose appointment we very much welcome, support the proposal or, like the rest of the industry, does he think that it is absolutely crazy and will endanger the investment that Railtrack is offering?
§ Mr. PrescottIt is very difficult to keep up with the Opposition. I read a statement attributed to the hon. Gentleman that he was claiming the idea himself. I was the one who asked the regulator to review the subsidies being given to the franchise operators and to consider whether those subsidies should be given to Railtrack because of the failure to invest in the infrastructure, which my hon. Friend the Member for Crewe and Nantwich (Mrs. Dunwoody) mentioned. I made the reference to the regulator and I believe that his report will be out in the next few days.
§ Mr. JenkinWho supports it?
§ Mr. PrescottI believe that there is considerable support. If the hon. Gentleman reads the Booz Allen report, commissioned by the regulator, which has been published, he will see that we are the ones who are making common sense about the railway system.