Channel Tunnel: International Rail Strategy

Question

15:21:00

Asked by

To ask His Majesty’s Government whether they are supporting the Campaign for Better Transport’s proposals to create an international rail strategy to increase the usage of the Channel Tunnel from the existing 50 per cent for passengers and 10 per cent for freight.

My Lords, we welcome the recent report. This Government support a thriving international rail passenger services market, given the benefits of greater choice, new services and lower fares, as well as the opportunity of serving Ashford, Ebbsfleet and Stratford with international trains. We are also keen to see the growth of international rail freight, which supports the Government’s growth mission; we are working hard to increase freight flows through the tunnel.

My Lords, I am grateful to my noble friend for that encouraging Answer, but he will know that in 2010 Deutsche Bahn brought one of its ICE trains through the Channel Tunnel to St Pancras with a view to starting through services to Germany from 2012. Other companies have indicated a similar interest, but nothing at all has happened. Does my noble friend agree not only that it is important to increase the use of stations that are now out of use, such as Ebbsfleet and Ashford, but that the tunnel access charges need to be reduced if these services are to be competitive? On freight, is he aware that the amount of freight currently going through the Channel Tunnel by rail is less than went on the train ferries operated by British Rail more than 30 years ago?

I thank my noble friend. I think I was there when the Deutsche Bahn train was at St Pancras in 2010; sadly, as my noble friend says, that did not materialise. There is currently a real opportunity for more passenger traffic to more destinations, and this Government are determined to seize it. For example, my right honourable friend the Secretary of State recently signed a memorandum of understanding with her Swiss counterpart to explore the setting up of a direct connection with Switzerland. On the charging situation, the access charging framework for the Channel Tunnel provides for an incremental reduction in unit charges as traffic levels increase. Eurotunnel also operates a discount scheme for new routes; HS1 is currently consulting on a similar scheme. Those are important for new entrants. The recent review of the control period charges by the Office of Rail and Road reduced them by 10.4% for passenger trains and by 66% for freight trains. The volume of freight needs to increase; it would be good if it were greater than what the old train ferries coped with.

My Lords, when the Channel Tunnel opened 31 years ago on 6 May, the forecast for freight traffic was between 8 million and 10 million tonnes. It peaked at 3 million tonnes then fell to 1 million tonnes. As the noble Lord, Lord Faulkner, said in his Question, there is enormous scope for taking freight off our roads and putting it through the tunnel. What specific measures do the Government envisage taking to achieve this?

The noble Baroness is right that those statistics are disappointing. As she notes, the aspiration then was for far more than currently exists. In answer to the previous question, I said that real reductions in charges, particularly for freight on HS1 and the charging regimes for both the tunnel and HS1, will help to encourage freight traffic. I am spending a lot of my time speaking to potential Channel Tunnel users to demonstrate to them the Government’s enthusiasm for more freight through the tunnel.

My Lords, given the report’s finding that better international rail links could replace 6.5 million short-haul flights per year, will the Government commit to cross-departmental work to actively shift passengers from air to rail for short international travel? That has the potential to cut CO₂ emissions by up to 680,000 tonnes annually.

The noble Baroness is right about the environmental benefits of travelling by train and of replacing short-haul air traffic. That is why we are putting in so much effort to create opportunities now for greater use of the tunnel to more destinations and by more operators. I have recently seen all but one of the potential competitors for Eurostar. The noble Baroness may know that the greatest difficulty is the availability of depot space in London. The Office of Rail and Road recently concluded an interim report, and I have asked the department to look urgently at other sites that can be used to increase depot capacity and therefore the number of passenger trains through the tunnel.

My Lords, the only high-speed line we have in this country is the 70-mile line from London to the Channel Tunnel, which opened in 2007. In the meantime, countries all around the world have been developing high-speed rail, while we, under the previous Tory Government, simply cancelled two of the high-speed lines that were being prepared. First, can my noble friend at the very least protect the routes of the planned lines to the north-west and the north-east? Secondly, is it not time that this Government developed a strategy for high-speed rail, which is being done by so many comparable countries across the world?

My noble friend is right to refer to the peremptory cancellation of phase 2a of HS2 by the previous Government. One of the first questions I answered in this House was from the noble Lord, Lord McLoughlin, who asked me what the alternative was. The truth is that the previous Government cancelled phase 2a without regard to any alternative, and this Government have to devise what they will now do. We have an even more urgent job than that, because the present state of HS2 as a project is not where any of us would like it to be. It was neglected by the previous Government, so we have to fix that—which the new chief executive is in the course of doing—and we then have to persuade ourselves that investment in railways of this sort is good because it will allow us to manage them properly.

My Lords, the Minister reveals himself, in his answers, to be a great enthusiast for competition and open access on the HS1 line. Why then have eight of the last nine applications for new open access routes on the Network Rail services been turned down?

The noble Lord will know that those decisions, at least on open access, are currently made by the Office of Rail and Road. He also needs to note that the Government have not subsidised HS1, Eurostar or Getlink, unlike the national railway network, which receives billions of pounds in subsidy at the taxpayer’s expense. Therefore, when looking at open access applications, we have to consider the net effect of the railway subsidy for this country as a whole. He is also ignoring the fact that the Channel Tunnel is underused. The report to which my noble friend Lord Faulkner referred says that it is only half used by passengers and that only 10% of its possible freight capacity is used. That suggests that we should be enthusiastic about its greater use—unlike most of the national railway network, which is very nearly full. I referred to the question to me from the noble Lord, Lord McLoughlin, about the west coast main line. There are very few paths and, consequently, we should be very careful in their allocation, especially to competing train services other than those franchised by the Government.

My Lords, I welcome what the Minister has said about encouraging greater traffic through the Channel Tunnel, but what can be done to convince the north of England, Scotland and the more distant parts of the United Kingdom that this will not be of benefit just to London and the south-east? At the moment there is a tremendous growth of long-distance sleeper services on the continent. Could these not be encouraged by the Government?

I thank my noble friend. He will remember that the original idea was to have through services from the Midlands, the north, Scotland and the west of England, and sleeper services too, but they were discontinued before many of them started operating because the business case and the economics of them were quite weak. For the moment, we think the best thing we can do is to encourage a multiplicity of destinations with reasonable speed and frequency, which will generate traffic and encourage people to travel by train, even though they might need to change in London.

Is my noble friend aware that a single goods train journey can remove 70 HGV journeys from the roads, and in some cases even more? That being the case, would not expanding the rail network—and that includes high-speed rail—free up capacity on the road network, therefore making the road network significantly safer?

The noble Lord is right that rail freight is extremely environmentally friendly; that is why this Government are spending a lot of time and effort to encourage rail freight. This includes setting a target for the new Great British Railways to increase the level of freight, but also remembering that freight needs its own space on the network for train paths. That refers back to the question from the noble Lord, Lord Moylan, about open access and is another reason to be careful about allocating all the space on the railway to competing passenger operations.