HC Deb 11 July 2000 vol 353 cc681-3
1. Mr. Tony Lloyd (Manchester, Central)

What recent discussions he has had with Virgin Trains on the rail service to Manchester and the north-west. [128400]

The Secretary of State for the Environment, Transport and the Regions (Mr. John Prescott)

It is the franchising director's responsibility to monitor the two franchises that Virgin Trains holds: west coast main line and cross country. He is in regular contact with Virgin Trains about all its services, including those to Manchester and the north-west.

Mr. Lloyd

Does my right hon. Friend agree that the travelling public in the north-west, served by Virgin Trains, hold the strong view that the standard of that service is appalling? It is not punctual often enough; it is shoddy and shabby; and, more importantly, is it very over-priced. Can he get the message across to Virgin Trains that we do not want to live for ever on promises from it? Can he scotch the rumours about delays in upgrading the west coast main line? As he is well aware, it is important to invest in that infrastructure so that we can have a world-class train service on the west coast and up to Scotland.

Mr. Prescott

I am well aware of the complaints made about the services of Virgin Trains; I travel by train quite often and passengers come up to me and make that point very clearly. The company's target was that services should arrive within 10 minutes of the expected time and about 80.6 per cent. of services achieved it. The service has improved by 8 per cent., but that is a pretty miserable record. To be fair, the desperate need for investment in the west coast line has to be taken into account. We faced problems in that Railtrack and Virgin reached an agreement on the cost of modernisation, which they estimated to be about £2.3 billion; the figure is now £5.2 billion. That two private companies can produce such different estimates does not make it easy to modernise the west coast line. I assure my hon. Friend that we shall ensure that the modern standard of line that has been guaranteed is delivered. He knows that the Director General of Fair Trading and the regulator are questioning Virgin Trains about fares.

Mr. Nicholas Winterton (Macclesfield)

I fully endorse the remarks of the hon. Member for Manchester, Central (Mr. Lloyd). Does the Deputy Prime Minister accept that, unless more trains arrive in accordance with the timetable—thus reducing the lateness that is so typical of the north-west line—the transfer of people from road to rail will not be achieved? Does he also agree that a town such as Macclesfield deserves a modern railway station as it is one of the major profit centres for Virgin in the north-west? Will he press Virgin, Railtrack and all those involved to make the necessary investment in the station and the track as well?

Mr. Prescott

The hon. Gentleman is correct to say that the reliability record is far worse than under public ownership, but I make it clear that investment is still the critical factor. I have already referred to the major miscalculation of the resources needed to modernise that line. The regulator is investigating, with Virgin and Railtrack, the cost of that operation. I hope that there will be a statement shortly, especially on Railtrack's contribution, and that we can get on with modernising the line. The Strategic Rail Authority is very much involved. There is an important difference between the previous Administration's approach under privatisation and ours; we are trying to bring back public interest in the management of our railways.

Mr. Eric Martlew (Carlisle)

Although I do not condone the performance of Virgin or Railtrack, the upgrading has started—we have waited many years for it—and the new tilting trains have been ordered, for which my right hon. Friend should take some credit. I have received a briefing from Railtrack today, and it seems to be getting its act together, but does he not agree that it is a great shame that all the track-laying equipment—and other heavy equipment—used to modernise our railways has been built abroad? Will he consider ways in which to help British manufacturers to get involved in those contracts?

Mr. Prescott

My hon. Friend is right. We are already seeing an increase in the number of people travelling by rail, even on Virgin. There has been an increase of about 17 per cent. on average in rail passenger numbers since May 1997. The improvements that we are making and our commitment to the long term are important contributory factors in that. My concern about the manufacturing of rolling stock goes back to when we were in opposition. The problem is that no one was prepared to make a commitment to the long-term planning of the rail industry. We are now correcting that and, with our announcement on the 10-year transport plan, we will give a future to the long-term development of the railways and transport in this country.

Mr. Bernard Jenkin (North Essex)

Will the Deputy Prime Minister at least acknowledge that the west coast main line upgrade has started and that the money is being provided by the privatised rail industry—money that he would never have been able to obtain from the Treasury? In comparison, as we approach the general election, why are we still waiting for Labour's so-called transport plan to be announced, let alone started? What have the Government been doing for the past three years? As they feed the press, day after day, with speculation about £50 billion, £80 billion, £140 billion or £160 billion, will he reflect on his own words about what people really think? Did not he say, "They think, 'Isn't this spinning and spinning is about lying'"?

Mr. Prescott

In 18 years of a Tory Administration, we had a decline in the use of the public transport service and disinvestment on a massive scale, but in three years, this Government have produced their first White Paper, the first piece of—[HoN. MEMBERS: "Oh!] If the Opposition had thought a hit more about what they were doing, they would not have ended up in a mess. We have a White Paper, legislation and a major announcement of long-term investment in transport. That is why people now have faith in the development of an integrated transport system.

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