Sustainable Railways

I am also disappointed by the hon. Lady’s contribution. She gave no recognition to the fact that the White Paper will deliver safer, more reliable trains. It targets investment on those lines where overcrowding is worst and will allow passenger demand to grow by 22.5 per cent. over the next seven years, so that 180 million more people can use the train every year—a huge contribution, not only to the environment, but to the economy. The hon. Lady asks what is new in the White Paper. I can tell her what is new—1,300 new carriages and the major projects, such as £5.5 billion on Thameslink. The hon. Lady went back to the 10-year plan, and I will deal with that. The 10-year plan was launched before Railtrack spiralled out of control as a result of the botched privatisation, which is, as I am sure all hon. Members would now agree, a credible analysis of the situation. Network Rail has now regained control and, for the first time in recent history, we are entering a period in which we can predict safely both a rising number of passengers using the train and significantly funded investments that are deliverable. Of course the rail regulator will assure himself of that before we commit to, for example, precisely where the 1,300 extra carriages will go. There is also the £550 million investment in Birmingham New Street and Reading stations, the £150 million for medium-sized stations up and down the country, and improvements to track and infrastructure across the railway. The hon. Lady asked two questions about the implications for fares. As a result of Railtrack and the botched privatisation of British Rail, the taxpayer subsidy rose significantly towards 50 per cent. last year. It is right that as costs are re-gripped and taken under control by Network Rail the level of taxpayer subsidy should fall towards historic levels. As a result of the strategy that we publish today, we envisage that that will reduce towards 26 per cent. in line with historic norms. It is right too to recognise—I hope that the hon. Lady does so—that 80 per cent. of passengers now use regulated fares, which are capped at RPI plus 1 per cent. Some discounted fares are significantly cheaper, even in cash terms, than they were in 1997. Indeed, the average price per kilometre travelled has risen by only 3 per cent. in real terms since 1991. The hon. Lady asked about the environment. The biggest single impact that we can have on the environment is by providing more capacity for passengers to use the railways. The White Paper is geared not only towards improving reliability, but to significant and major investment in delivering greater capacity. The industry has committed itself to come up with carbon reduction targets by next year, and for the next output control period we will set—alongside safety, reliability and performance targets—specific carbon targets and commitments. The hon. Lady asks about added seats. I have already said, in answer to the hon. Member for Chipping Barnet (Mrs. Villiers), that 100,000 new seats will be added as a result of the significant investment we are making. She asks about freight. We are confident that rail freight will continue to grow over the next 10 to 15 years and that we can use the productivity element of the transport innovation fund as a potential funding stream to enhance the strategic freight network. We are making available an extra £200 million for the development of the strategic network. The hon. Lady asks about the high speed rail link. Such a link would cost £30 billion and would not be delivered for 20 years, but it is right that we examine the case for it and that we continue to explore options and keep it under review. If we had £30 billion—the hon. Lady may have that much money but I do not at present—there are ways of spending it that will better deliver more, and sooner, for current passengers than a high speed rail link could ever do. If the economics or the environmental calculations change, it is right that we consider them in due course. The railway White Paper and the funding statement will deliver an improved railway for today’s passengers and accommodate an increase in demand of almost a quarter over the next seven years. That should be welcomed.