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Sustainable Railways

I also said that I will move on to the longer-term programme. As part of that we must link towns and cities closer together so that people can travel between them for business, pleasure and other reasons far more quickly and effectively than is possible today, hence the investment that we have put in to a number of schemes. You would not wish me to speak about road schemes, hard-shoulder running and so on, Sir Nicholas. There is a range of schemes that aim to create a better, more efficient grid, and 14 strategic rail corridors are the priorities in bringing together the towns and cities of our nation so that the balance can be redressed. Improvements to stations across the network are also under way. The White Paper announced that £150 million will be earmarked to improve about 150 intermediate stations in England and Wales over the next five years. The national stations improvement programme will bring about a noticeable and lasting improvement in the environment of stations, which will benefit passengers. Local delivery groups jointly chaired by Network Rail and the relevant train operator have been set up to focus on the operator's portfolio of stations and identify candidate stations for funding. The issue of performance has also been raised. The performance of passenger services continues to improve, as was recognised by a number of hon. Members. Rail punctuality and reliability is at the highest level since the current measure was established seven years ago. That has been achieved through substantial investment and improved joint working across the rail industry. At the same time, we have seen a 40 per cent. increase in the number of passengers utilising rail services. In the last year, 90.8 per cent. of passenger trains arrived on time. The Government have specified that there should be an improvement in reliability to 92.6 per cent. by 2014 as part of our challenging vision. In addition, we are specifying a 25 per cent. reduction in delays of more than 35 minutes. Improvements due to the development of the west coast main line have been recognised. The £8.9 billion modernisation programme, which was delivered on schedule, has resulted in an improved timetable. The standard London to Birmingham journey time is down to 82 minutes. When I visited Birmingham for discussions with the chamber of commerce and various industry and business representatives, they commented on the difference that that is already making to their lives, businesses and commerciality. The fastest services to Manchester take just over two hours and to Glasgow just over four. The shuttle service every 20 minutes to Birmingham and Manchester is a further step change. The report—and some Members—referred to the disruption experienced by passengers and freight customers on the west coast main line in early January. That is primarily a matter for Network Rail to address. It is working closely with the Office of Rail Regulation and passenger and freight train operators. Network Rail is investigating the causes of the disruptions. I understand that to date the findings show that the causes are not related to each other or to the recent engineering and enhancement on the route. The report will be published shortly. The Transport Committee report deals in some detail with the engineering works of new year 2008. Despite the comments of some hon. Members, it is important to be clear that Network Rail is an independent private sector company. It is accountable for its performance against its business plan and to the independent Office of Rail Regulation for its performance against its licence. The ORR ensures that Network Rail complies with its licence conditions and it takes enforcement action in the event of a breach. Hon. Members will be aware that the ORR imposed a £14 million fine on Network Rail in response to the new year 2008 overruns. From the contributions this afternoon and the work in the Department, I understand that since new year 2008, Network Rail has made progress in improving its procedures for the management and delivery of engineering works. My hon. Friend the Member for Carlisle (Mr. Martlew) recognised that there had been improvements. The Chairman of the Select Committee raised the issue of regulation and whether Network Rail has improved. We believe that the communication between operating companies has improved. The work undertaken since new year 2008 on the bank holidays in May and August and over Christmas and the new year have run on time and without incident. As I have said, it is for the Office of Rail Regulation to ensure that Network Rail complies with its licence conditions. A number of hon. Members referred to what might happen as a result of the current economic downturn. A prolonged economic downturn is bound to affect passenger numbers, but because of previous growth and investment in the rail industry we believe that it will remain competitive in these challenging circumstances. However, under the current regulatory system, the risks and rewards in the rail industry are shared between the train operators and the Government. Most franchises are set up in such a way as to ensure that operators are supported during periods of economic downturn and, in turn, that they share their profits with the Government in times of strong economic growth. At the end of the day, in terms of investment, structure and charges, it is right that the balance is met from only two sources, one being the taxpayer and the other being the fare payer. Those who suggest that all fares should be substantially reduced without saying categorically where the money would come from to subsidise the fare package are therefore being uncharitable. I am aware that the issue has been raised recently as a result of the fare changes introduced earlier this year.