Stephen Hammond – 2013 Speech at the Institution of Civil Engineers


Below is the text of the speech made by Stephen Hammond, the then Parliamentary Under Secretary of State for Transport, at the Institution of Civil Engineers on 18 June 2013.

Transport is crucial to everything we do; getting food to the shops, products to market, people to jobs. When transport slows everything slows and when it stops everything stops so good transport is essential to drive sustainable economic growth, prosperity for all and to make Britain a great place to live.

Transport is central to the coalition strategy to growth, helping UK businesses to be more productive, rebalancing our economy and enabling the UK to compete in the global race. That’s why we have invested in transport infrastructure in all parts of our country from targeted improvements to our networks, transformation investments for future generations.

We also recognize that we face challenges many of which as civil engineers the ICE members will be grappling with today and in the future; how to meet rising demand for mobility, how to reduce costs whilst improving services, how to mitigate the impact of transport, how to embrace technological change and how to expand networks whilst also making them more efficient?

Government cannot overcome challenges alone. We need to continue our discussion with industry, academics and wider society to secure that the transport infrastructure that the UK needs and deserves. The ICE ‘State of the nation’ report is an informed and useful contribution to this on going debate.

Stephen Hammond – 2014 Speech in Dover


Below is the text of the speech made by Stephen Hammond, the Parliamentary Under-Secretary of State for Transport, at Dover on 9th April 2014.

The Port of Dover is the gateway to Britain; a critical piece of national infrastructure, but also an integral part of the town.

We all want to see a thriving port and thriving town.

I last visited Dover in November, and heard your views at first-hand about what has worked well at the port over the past year, and what can be improved.

I have thought about what you said, and today (9 April 2014) I’m going to set out the steps I believe we need to take to secure an enduring and shared future for the port and for the community.

Before I go on, I’d like to pay tribute to everyone in Dover involved with the port.

Both the local MP Charlie Elphicke and the Dover Harbour Board Chair, George Jenkins, have in their respective roles made progress in bridging the divide between port and town.

I would also like to commend the harbour board for the excellent performance of the port operations and commend the community for setting out their views on the future of the port with such vigour and purpose.

We have also seen plans for growth and regeneration in Dover, both from Dover Harbour Board (DHB) and the district council. We need to make sure that these move forwards together, and that there is appropriate level of consultation.

Whilst a start has been made, I think we can still do more.

Today (9 April 2014), I’m going to set out the steps that need to be taken to ensure an enduring solution in 3 areas: community involvement, commercial development and regeneration.

The port and its staff has taken significant steps towards improving its engagement with the community.

I have listened to the concerns that were raised when I last visited in November, that although the port and community forum had been set up, and a useful start has been made, we need to move forward further.

I believe Dover needs an enduring and meaningful consultative relationship with its port. This can be achieved by a legal commitment to consult interested parties, as has been done successfully at other major trust ports.

The port and community forum and port user group are in their early days but these groups, among others which have been seen to work well at major trust ports, could be vehicles for delivering this legal commitment.

But we need to do more to deliver a significant and enduring relationship between town and port.

So as well as the legal commitment I have agreed with the board that an important form of permanent community involvement is seats in the boardroom.

Therefore additional, community non-executive directors should be appointed to the board, as has been done at other successful trust ports.

The future board will consist of the chairman, existing non-executive specialist directors, executive directors, and now these community non-executive directors.

This board will oversee 2 operating divisions; a port operating division and a division dedicated to regeneration.

I am clear that all board members must be able to fulfil the duties of this important role.

And it is also important that these community board members are drawn from the community itself, for example either because they live in Dover or have a business in the town.

I want the local community to be involved in selecting these board members, and a form of election could be part of the process. There is much work to be done on clarifying how this can be enacted to best benefit the community and the ongoing success of the port.

I want the board and the wider community to consider together how this can be achieved. I am committed to working with the local member of Parliament to ensure that we have community non-executive directors who have the trust and confidence of the community.

The important point here is that together these measures will place the community at the heart of decision-making at the port.

Engagement with the community and port users is a priority, however without the bedrock of strong commercial performance from the port, nothing can be achieved.

The port has put in an excellent performance over the past year with a 13% increase in ro-ro traffic, and an £85 million investment programme in key infrastructure projects.

This includes the completed berth 6 and traffic management improvement works, which include the creation of a new holding area with capacity for 220 freight vehicles.

This is equivalent to taking almost 4 kilometres of traffic off Dover’s roads.

I would also like to thank everyone at the port for their remarkable resilience in ensuring that the port continued to operate effectively during the appalling weather we experienced this winter.

In February the port also set out its vision for the revival of the western docks, a development which has the potential to create 600 new jobs whilst safeguarding another 140.

These jobs will not be tied to the initial construction projects, and offer a long term boost to Dover.

We now need to allow the port to build on this start, and to make the most of Dover’s commercial potential.

I have therefore agreed with the harbour board that, they should get up-to-date financial powers, giving them the flexibility they need to improve and expand further.

This means enabling them to enter joint ventures, and also to borrow against their assets.

The investment this will help deliver should bring real benefits to the port, its customers and the local community.

These reforms will enable the harbour board to raise substantial funds to invest in the future.

These changes are necessary because we need to do more to regenerate Dover.

The financial powers which are required for the commercial development of the port will allow DHB to enhance its contribution to regeneration.

Alongside the revival of the western docks, we want to see the regeneration of the waterfront, the marina, and Cambridge terrace.

I want everyone to feel that their voice is being heard as these developments progress. The new community directors will enable this to happen.

The harbour board will continue to play a significant role in regeneration.

I have asked them to improve their focus on this and, as a result, I have agreed that the harbour board will create divisions responsible for day-to-day operations and regeneration.

As with commercial operations, the new regeneration division will benefit greatly from the new borrowing powers in moving forward its plans.

This structure will also enable the regeneration division to enact or enter into the whole range of commercial arrangements which will allow regeneration opportunities to be maximised.

Furthermore as a future step, I would like to explore the possibility of the regeneration division becoming a subsidiary company or trust.

That would allow it to benefit from an even greater range of external funding that would not otherwise be possible, for example heritage funding opportunities .

To sum up, Dover is a trust port, with all the benefits that brings. And so my plan is for Dover to remain a trust port. But one with a guarantee of a significant and lasting role for the community as part of the strategic leadership of the port.

This gives the community full participation and consultation in strategic decision making going forward.

As well as looking to the community, the port also has an essential role as a major commercial business with a vital role in the UK’s transport infrastructure.

To continue to succeed, the port must have the right financial powers to allow it to invest and prosper.

My plan will provide this.

Dover is a port town and the port and town must thrive together.

The improved focus on wider regeneration through the new division will allow for engagement of appropriate expertise in this area. This, along with the new financial powers will mean the port can realise better the opportunities it can deliver as well as acting as a catalyst for the wider regeneration of the town.

My plan ensures this.

To make these changes happen, I have agreed with Dover Harbour Board that they will embed the new financial powers and community engagement changes in law through the Harbour Revision Order process.

I am confident that this legislation can swiftly be put in place.

Legislative changes provide a full opportunity for all interested parties to make their voices heard, and you will be kept informed of how you can participate.

My plan ensures that this will happen.

In the meantime I am sure we can all be positive that these changes mean we can move on in the debate about how port and community can work together and channel energies into delivery.

Dover is the gateway to Britain, and it is imperative that this vital part of our transport infrastructure can continue to operate efficiently as a world class port in the 21st century.

But this should be hand in hand with the local community, rather than at its expense.

I am today (9 April 2014) asking the harbour board to explore how the port might further contribute funding and support for the benefit of the local community. I propose a community fund which should maximise the opportunities now afforded. I hope that the harbour board will consider providing it with appropriate initial and ongoing funding from the pre-tax profit of the port, in line with the practise seen in other trust ports.

As I said at the beginning progress has been made and I believe the changes announced today (9 April 2014) will allow the port and town to work permanently, hand-in-hand together towards a thriving Dover.

I would now like to take the opportunity to come and talk to you about what I have just said and answer any questions you may have.

Thank you.

Stephen Hammond – 2014 Speech to British Ports Association


Below is the text of the speech made by Stephen Hammond, the Parliamentary Under-Secretary of State for Transport, on 3rd April 2014.

I am delighted to have been invited back to the British Ports Association’s annual lunch.

Because the BPA represents the full breadth of ports, harbours, terminal operators and port facilities across the country you are an important and influential voice in government and beyond.

And I would like to thank Andrew for that kind introduction and congratulate you on your new role.

Ladies and gentlemen, we have had a fantastic meal today (3 April 2014).

So I will keep my remarks brief.

The economy is emerging from the storm caused by the 2008 financial crisis and years of borrowing beyond our means.

The deficit is down by a third.

Inflation and unemployment are falling.

Investment and exports are up.

We started the year with the fastest growing economy of the major industrialised nations.

While this is evidence our long-term economic plan is working the job is not yet complete.

As a country we still need to make more and export more.

And achieving that will simply not possible without you.

That why I place such emphasis on the Ports Strategic Partnership – not so much a case of we’re all in it together, more a case of all hands on deck.

And I want to talk today about some of the priority areas where I think we can work together over the coming months.

The resilience of our transport networks has been thrust into the national consciousness as a result of the recent storms.

Ports were battered by some of the biggest seas in recent memory.

I’ve been particularly impressed by your efforts to keep ports open despite the conditions.

Something that perhaps has not been appreciated as much as it should have been.

The unprecedented storms caused particularly bad damage to some of our smaller ports.

And that has had a knock on impact for businesses from fishing to leisure and put many jobs at risk.

So I am very pleased to be able to announce today (3 April 2014) that we will be making £2 million available to help the smallest ports recover.

The BPA will be contacting all eligible ports with details and application forms shortly.

These will then be assessed by an independent panel, appointed by the BPA, who will make recommendations to me.

I would like to take this opportunity to thank the BPA for their help getting this scheme off the ground so quickly.

Our smaller ports are absolutely vital to their local economies across the country.

I want to see the necessary repairs made.

Ensuring they are back up and running and open for businesses as soon as possible.

As the economy returns to growth.

As well as exporting more we can expect rising domestic demand.

Demand for raw materials, for components and for fuel.

That means we need efficient ports and they need good connections into the road and rail network.

Because while where the port is on the coastline is important your customers also need to know they can reach you quickly and reliably.

So we are doing 3 things.

First, we are investing £200 million to improve the rail freight network over the next 5 years.

But I know most ports will continue to rely on the road network.

So, second, we are investing £24 billion in the most significant upgrade of our strategic road network ever.

That will include tackling some of the most congested roads, like the A1.

But just as important is the last mile between the strategic road network and the port gates.

So, third, we have created the Local Growth Fund which will be worth £10 billion between now and 2021.

It will be delivered with Local Economic Partnerships and focussed on what is needed to unlock growth in their local area.

That includes transport investment.

And I’m pleased that forward looking Local Economic Partnerships, like Dorset, have already started thinking about how the fund can improve access to ports.

Around 120,000 people are already directly employed in UK ports.

And more jobs are being created as the economy grows and the sector invests in new capacity.

I want to see more of our young people secure a job in one of the most dynamic industries in the world.

And UK ports have access to the skilled workforce they need to be efficient and compete.

That’s why I hosted the latest maritime roundtable on the subject earlier this week.

Ministers from across government, the industry and Trades Unions discussed how we can expand, improve and promote the number of maritime training opportunities available.

Our commitment to training is underpinned by the UK’s Tonnage Tax regime and my department’s funding for SMarT to the tune of £15 million per annum.

On the land side I know that the ports sector has a good track record of investing in skills and apprenticeships and I would urge that you continue to expand this commitment wherever you can.

What was clear from the roundtable discussion was we need to be even more cohesive.

Because natural career progression means many trained on the wet side move into professions on the dry side of the industry when they come ashore.

So I want to do more to use the experience and lessons learned on the wet side of the industry to further increase opportunities on the dry side.

As you know, the nature of the economy is also changing.

Offshore production is increasingly moving back to developed countries.

More than 1 in 10 small or medium sized companies brought some production back to Britain in the last year.

That’s double the number outsourcing abroad.

Not because Chinese wages are rising but because companies now want to be closer to their customers so that they can respond more quickly to changes in demand.

That makes flexible and dynamic ports, like trust ports, that are plugged into their local and regional economies even more important.

I’ve now visited a number of trust ports and met many more of you who work in and with them.

Trust ports are a thriving and essential part of our ports and maritime sector.

And no 2 trust ports are the same.

But they all benefit the communities they serve and the economy.

I want trust ports to be able to seize the opportunities that are coming.

To help do so, over the rest of this year I want to think more about the nature of trust ports and if, or how, this might need to alter in future.

I want to work hand-in-hand with you on this.

To tap directly into your unparalleled experience and expertise.

There are 3 issues in particular that I think would be worth considering.

Firstly, how can local communities, including businesses, be engaged involved more closely in the port?

I believe ensuring that their voice is heard and acted on is crucial for any successful port.

But engaging with the local community must be at the heart of what a trust ports does.

There are some very good examples around the country of how some ports are doing this.

My question is can we do more? What works well and can this be applied more widely?

Secondly, is there scope for greater use of private finance help trust ports develop further in future?

There is no reason why trust ports, the larger ones in particular shouldn’t be an attractive proposition to lenders.

I understand your frustrations with ONS classification and we need to look further at how we ensure that access to capital is not stymied by bureaucratic accounting rules.

But are there innovative ways in which medium-sized and perhaps even smaller ports could benefit from greater access to private finance?

Third on my list, is governance.

Modernising Trust Ports 2 is 5 years old and, frankly, it needs reviewing for many good reasons, not least because we badly need to change its name.

I am well aware that trust ports no longer need modernising!

But the guidance does need to reflect the latest best practice in corporate governance and also on board appointments.

I also want to hear your views on what has worked well and what has not worked so well.

I look forward to working with you on this over the next 12 months.

The final area I’d like to work with you on is improving regulation.

I know you need light-touch and proportionate regulation to be able to compete.

Progress on the European Commission’s proposed regulation on port services has ground to a halt for the time being.

Some of you may have guessed that I have not been too disappointed.

Frankly, the Commission did not present a convincing case for the initial proposal.

There was a great deal of bureaucracy and regulation that is unacceptable for a competitive, and largely unsubsidised, port sector.

Nevertheless there are some features worth cultivating – not least in relation to financial transparency.

And these aspects have helped us to make the connection for pressure for effective action on State Aids.

It remains to be seen whether the Commission can be persuaded to act effectively on State Aid.

But if the Commission produces robust guidance, and decisions, it will benefit taxpayers, the UK ports industry and ultimately, continental operators too.

Because this country has proven beyond doubt that ports don’t need taxpayer feather-bedding to provide a great service.

I’d like to pay tribute to the BPA for your support.

Without your insight I do not think our arguments would have made such an impact.

In conclusion, as the global economy returns to growth, there are significant opportunities on the horizon.

In total, the OECD predicts that global port traffic could quadruple by 2030.

Creating demand for new capacity.

A growing global market.

And one that I want to help Britain’s fantastic companies in port operations, logistics and maritime finance compete for.

The International Festival for Business will take place in Liverpool later this year.

I will be taking the opportunity to bang the drum for Britain’s maritime industry.

For all our ports.

For our shipping industry.

And for our world-class maritime services.

I hope you will all be there to join me in attracting more business for your port, your region and the UK.

I look forward to continuing to work together, in partnership, over the coming year.

Thank you for listening.

Stephen Hammond – 2013 Speech on the Coastguard Service


Below is the text of the speech made by Stephen Hammond, the Transport Minister, on 30th November 2013.

Thank you for inviting me to join you at Bristow’s 30th Anniversary celebrations in Shetland, and my apologies for not being able to join you in person because of my other commitments.

It was of course, 30 years ago to the day that the search and rescue base in Shetland started operations on behalf of Her Majesty’s Coastguard.

As minister with responsibility for Her Majesty’s Coastguard, it is a great honour to be able to pay tribute to the professionalism and hard work of all those who have been committed to search and rescue over the last 30 years, in Shetland. And it is right that you are gathered there today (30 November 2013) to celebrate this important milestone. You tirelessly venture out in all weathers throughout the year to rescue people in danger. And, of course, operations here could not succeed were it not for the highly skilled engineers and support staff, many of whom I know are there today (30 November 2013) as well.

Sadly, not everyone who has worked on the base can be there today (30 November 2013), but I want this tribute to stand for all those who have helped save lives over the past 30 years through their work on the base. The very high regard in which you are all held by the local communities in Shetland and the enormous gratitude for what you do is shared with me and my ministerial colleagues here in London.

The professionalism and dedication to search and rescue from all who have worked on this base has been the benchmark for the new search and rescue helicopter arrangements that Bristow is now implementing across the United Kingdom. I want to thank all of those who have played their part in the success of this base over the past 30 years, as well as those who are leading on putting in place the new UK SAR helicopter arrangements elsewhere.

I also want to pay tribute to colleagues from Sikorsky Helicopters. Sikorsky’s helicopters have been an important part of the success of this unit over the past 30 years. They are highly visible in the local community in Shetland and will be equally recognisable in other parts of the UK in the coming years.

The fact that I could not be here today (30 November 2013) is a disappointment to me, however I am sure that you will mark this occasion in a manner that is right and correct. So enjoy this day!

Thank you.

Stephen Hammond – 2013 Speech on Maritime Regulation


Below is the text of the speech made by Stephen Hammond at the International Maritime Organisation on 25th November 2013.

Mr President, your excellencies, Secretary-General, ladies and gentlemen it gives me great pleasure on behalf of Her Majesty’s government of the United Kingdom of Great Britain and Northern Ireland to welcome you to London for the 28th assembly of the International Maritime Organization.

I would like to thank the Secretary-General for his words this morning (25 November 2013) and his leadership of the organisation.

Before I begin, I would like to echo the words of the Secretary-General to the distinguished delegation of the Philippines.

All our thoughts are with those who have suffered such devastation, lost loved ones and, in particular, the seafarers who are currently serving at sea and are unable to be with their families during this difficult time.

On behalf of Her Majesty’s government, please pass on my sincere condolences to your government.

Over the last two years I have had the great pleasure of meeting many of you here today (25 November 2013) and that has given me the chance to understand the challenges facing shipping and the vital role of the organisation in meeting them.

So it is a particular privilege for me to address you this morning.

As an island nation, we are a seafaring nation and are proud of contribution to the safety at sea.

Next year we will be celebrating the 500th anniversary of Trinity House, just down river in the shadow of the Tower of London, that was established by King Henry VIII to improve the safety and welfare of mariners using Britain’s ports.

It was the member of Parliament for Derby, Samuel Plimsoll, who deeply concerned by increasing losses of life at sea, fought for maritime safety.

It was his campaign that led to the legal requirement for the Plimsoll line to be marked on all ships, a measure that went on to be adopted globally the first Load Line Convention, that was held right here in London.

And it was in London almost a century ago that the Convention for the Safety of Life at Sea was adopted and established the principle that the most effective way to improve maritime safety was through international agreement.

On those foundations, since 1958 the IMO has transformed maritime safety and done so much to minimise marine pollution.

The size of the global merchant fleet has increased by almost 1 million tons in the last 30 years and world seaborne trade has almost quadrupled in the last 40, while thanks to work of the IMO, the number of maritime casualties is falling.

But as long as, to use Shakespeare’s words, ‘ships are but boards, sailors but men and there is the peril of waters, winds and rocks’ there will be the need for the organisation.

That’s why in the 21st century we remain immensely honoured that the IMO calls London its home and I am delighted to welcome you to this important assembly.

Before we embark on the next biennium, it is appropriate that we acknowledge the achievements of the last.

First, the organisation’s response to the Costa Concordia incident. I believe that the proposals that the organisation has identified will improve the safety of passengers and crew and I am grateful for the close involvement of the industry in this process.

Second, the production of guidance for private maritime security companies and the collaboration with the International Standards Organisation will ensure firms that deter piracy will meet a standard that will be the global benchmark.

I am very pleased on behalf of my predecessor – Mr Penning – that this assembly is being asked to adopt a resolution on the Preservation and Collection of Evidence following an allegation of a serious crime on board a vessel.

This issue was raised by the UK, among others, at the last assembly and that we are ready to adopt these guidelines is a tribute to the hard work and dedication of many of you here today (25 November 2013).

The challenge for all successful organisations is how to maintain their performance while simultaneously renewing themselves so they face the future not the past.

By streamlining administration and consolidating the work programme of the organisation, ‘The review and reform programme’ will make significant steps towards ensuring the IMO is efficient and forward looking.

I would like to take this opportunity to thank the chairman of the committees and sub-committees, the secretariat and interpreters and the many officials who attend IMO with their delegations for your hard work, without you the IMO would not hold the status it does within the United Nations.

Mr President, your excellencies, Secretary-General, ladies and gentlemen, today the biggest challenge we face is economic.

As a result of the 2008 financial crisis world per capita output, which typically expands by about 2.2% annually, contracted by 1.8% in 2009.

Global exports fell by around 12% in 2009.

This was the largest contraction of the global economy since the Second World War.

While the world economy is now recovering, this is uneven.

The IMF predict that in the next decade the current fast growing countries share of global GDP will increase from about half to nearly two-thirds.

So in a world in which more people, in more countries will become part of the global economy, shipping will be more important to economic growth, not less.

Simply put, shipping is an engine for growth.

The OECD estimates every tonne of port throughput is produces around 100 dollars of economic value added and every million tonnes of port activity creates 300 jobs in the region.

That’s why countries across the world are investing in their ports capacity to take advantage with global capacity almost doubling in just 9 years.

That makes this meeting and our work over the next biennium critical.

Our work over the next biennium must continue to focus on ensuring the industry is safe, is clean and develops a highly skilled, highly trained workforce.

However, we need to recognise that, as times change, some regulations can become ineffective and unnecessary. Complying with them costs businesses time and money, and can restrict growth.

Regulations also need to be applied consistently or they could create the perception of unfairness and an unwillingness to engage in international cooperation.

I’m reminded of the story told by Raghuram Rajan, the new governor of India’s central bank, that there is a regulation that all factories in Uttar Pradesh are still required to have snake traps. When the rule came into force the factories were surrounded by dense jungle, now – of course – they are in the city.

So I want to suggest 3 principles that should guide our thinking over the next biennium:

First, is the proposed regulation transparent enough? With a ship’s life cycle being in the region of 25 to 30 years, the maritime industry is particularly vulnerable to changes in legislation and standards. Have we asked whether industry knows why what is proposed is necessary, have they been engaged in its development and are we providing time to plan and adapt?

Second, is the regulation proportionate to what we need to achieve? We should work to ensure that regulation encourages economic progress and only intervene when there is a clear case for protection. Do we know whether it is possible to incentivise change more quickly and effectively than mandating it?

Third, is the proposed regulation fair? For regulation to be effective it needs to be developed and adopted in such a way that regulations are accepted by all, promote a level playing field and reduce barriers to trade. So we should ask ourselves is the burden of a proposed regulation shared fairly between industry and government and between countries and regions?

Mr President, Mr Secretary-General, distinguished delegates.

Fifty-six years ago our forbears met for the first time. Half a century a later, the work of the International Maritime Organization assembly over the coming days will be as vital as it ever has been: for the safety, environmental protection and security of our seas, for the seafarers who work on them, and, for the millions of people whose jobs and lives rely on efficient seaborne trade.

In conclusion, I would like to reaffirm the United Kingdom’s commitment to both the work of the IMO and our honoured role as host government. We will continue to contribute to the critical work of the organisation over the next biennium.

I have no doubt that our discussions over the next 2 weeks will be challenging but productive.

And I hope that you find time in between to enjoy London.

Finally, I look forward to greeting as many of you as possible at our reception on the evening of 3 December.

Thank you.

Stephen Hammond – 2013 Speech on Crossrail


Below is the text of the speech made by the Parliamentary Under-Secretary of State for Transport, Stephen Hammond, in the House of Commons on 1st March 2013.

I would like to inform the House about a change in the financing approach for the Crossrail rolling stock and associated depot facilities contract.

The Mayor of London and Transport for London have proposed using the flexibility in the original procurement to move from the current financing model, involving a substantial element of private sector funding, to one that is entirely funded by the public sector.

I can inform the House that the government has agreed to this change. The decision reflects the unique circumstances that apply to Crossrail. As a new route that is currently under construction it has no inherited train fleet and without new trains the service cannot open.

Transport for London and the government believe this decision is an appropriate course of action to deliver a very complex and unique infrastructure project within the delivery timetable. Trains need to be ordered by the middle of 2014, so that testing and delivery of the fleet can start in spring 2017, well ahead of the opening of Crossrail’s Central Tunnel Section in late 2018.

Any delay in the rolling stock order would place this delivery timetable in jeopardy. By removing the private financing requirement and moving to a wholly publicly funded procurement the contract negotiations will be simplified and as a result Transport for London believes this will provide greater certainty that the contract can be awarded in time.

In considering these concerns and the importance of the Crossrail Project to the country, the government has been convinced that – in this specific case – a change in the financing strategy is an appropriate course to pursue.

Within the current Spending Review period this will involve the use of existing TfL budgets. The remaining costs that fall beyond 2014 to 2015 will be factored into future capital spending plans.

The Department for Transport remains committed to the use of private finance in transport projects where it provides value for money and fits with our timetables for planned investment.

The financing of the contract is the only key element of the contract that will change. The responsible procurement requirements set out by my predecessor last February will remain as will the requirements for bidders to set out an estimate of the contract value that will be spent in the UK. While this is not an assessment criterion in the decision process, the successful bidder will be required to report against it following contract award.

Following this decision, Crossrail Limited intends to issue a revised invitation to negotiate in due course. I will ensure that a copy of this is available in the House library as soon as it is available. Bidders will then be asked to resubmit their bids based on this revised financing structure later this year.

I will keep the House updated with progress on this issue.

Stephen Hammond – 2012 Speech to Place West London Conference


Below is the text of the speech by Stephen Hammond, the then Parliamentary Under Secretary of Transport, to the Place West London conference on 22nd October 2013.


I’d like to begin by thanking Place London for inviting me to today’s event, and to Richard [Barnes, Chair] for that kind introduction.

It’s wonderful to see so many people here with an interest in this part of the city.

I may be new to this ministerial brief, but I’m not new to London. As MP for Wimbledon, this is my home patch.

So I can reassure you that investment in the infrastructure, regeneration, and the economy of west and south west London is very close to my heart.

This year we’ve seen London host a spectacular Olympic and Paralympic Games.

The Olympic Park might have been in east London, but the whole city embraced the Games, including west London with events at Wembley and Earl’s Court.

London 2012 – we planned, we built and we delivered.

So we can all take pride in the way our capital showed itself to the world this year.

As a city that takes massive infrastructure projects in its stride.

As a city that deals with huge numbers of commuters, visitors and residents.

And as a city that successfully staged the greatest show on earth.

The challenge is to keep up that momentum, and make sure we’re planning ahead so that London stays where it should be – at the top of the list of world cities.

That will require continued investment in transport.

To relieve congestion as the city grows.

To make new links, connecting people and businesses

And to support regeneration projects that are vital to development.

This government is putting in the resources because we know that giving people and businesses access to a high quality, high performance transport system makes sense for our country’s future prosperity.

That’s why, in the current Spending Review period, we committed £30 billion to road, rail and local transport projects across the country.

But we also understand that investment is vital for our capital:

– to support a labour productivity rate here in London that’s more than 31% above the national average.

– to maintain the City’s position as the world’s number one financial centre

– and to fuel an economy that accounts for around 19% of UK GDP

London is Britain’s economic engine.

And, by investing in the transport infrastructure that serves and supports the capital, we can keep that engine powered, for the benefit of the whole country.


I know that, for many of you, aviation is one of the key transport issues at the moment, especially on this side of London.

So there’s a legitimate debate to be had about the future of aviation.

But it’s important that debate is informed by the facts rather than by anecdote.

In Heathrow, we’ve got the busiest international airport anywhere in the world.

And our capital and our country are among the best connected places on the planet.

Without question we are in the global aviation premier league.

But as my colleague the Secretary of State reminded us in his recent Party Conference Speech in Birmingham, it’s not going to last, if we don’t act.

Birmingham, Manchester, Glasgow, Edinburgh all have first rate airports too.

But in the south east the runways are filling up and the planes are being left to circle in our skies.

So in the short term we’re increasing reliability and reducing delays by trialling operational freedoms at Heathrow

But it’s vital that we think long-term about how we remain globally competitive and globally connected.

Of course there are all sorts of ideas – usually as many ideas as there are people in the room.

So we’ve asked Sir Howard Davies to chair an independent Airports Commission to consider the connectivity needs of the UK, and to make recommendations to government on how those needs can be met.

The Commission will provide an interim report to the government no later than the end of 2013 and then publish a final report by the summer of 2015.

I expect that Sir Howard will soon be setting out further details on the membership of the Commission and its work….including how he intends engaging with interested parties.

So, if you class yourself as an interested party, then watch this space.

Investment in London’s transport infrastructure

I’d like to talk now about some of the other transport projects that are already underway.

Improving the road networks that serve London for example.

Whether it’s working with TfL and ensuring that utility companies speed up their road-work, or it’s easing congestion on key strategic roads, like the M25, through innovations such as hard shoulder running and managed motorway technology.

Then there’s the Tube upgrade programme – work that will deliver a 30% increase in the capacity of the Tube network.

West London is already starting to see the benefits; the entire fleet has been replaced on the Metropolitan Line, with 58 new longer, air-conditioned trains, with the same to follow on the Hammersmith and City Line.

Also in west London, Royal Oak has seen the first two Crossrail Tunnel boring machines begin their journey under the city.

When completed, Crossrail will deliver faster journey times and a 10% uplift in capacity.

It will bring an additional 1.5 million people within 45 minutes of London’s business centres.

And it will support employment growth of up to 30,000 jobs by 2026 in central London.

The Crossrail scheme as planned will deliver 8 new underground stations in the central section.

27 upgraded and reconstructed surface stations.

And up to 14,000 jobs during the peak construction period in 2014.

By 2026, we estimate it will carry 200 million passengers each year.

The impact will be felt all the way along its route, not just in central London.

Crossrail is already having an impact on investment decisions, supporting and accelerating new development.

This includes thousands of new homes, and millions of square metres of commercial office space within one kilometre of stations along the route.

Recent research has estimated that residential capital values immediately around stations could increase by 25% in central London and by 20% in the suburbs.

But despite all the planned investment in the tube and Crossrail, demand forecasts show that, without additional investment, crowding will return to unacceptable levels by 2030.

So thinking is needed now about how to address this challenge.

One option championed by many in the business community is Crossrail 2.

Something I know TfL are studying closely…and I look forward to reading their analysis when it’s completed.

Then there are TfL’s proposals to extend the Northern Line from Kennington to Battersea.

This is an extension that would improve transport links and support the transformation of Nine Elms and Vauxhall, a designated regeneration area on the South Bank.

Up to 25,000 jobs and 16,000 new homes could be created and journey times from Nine Elms or Battersea to the West End or the city would, in some cases, be less than 15 minutes.


Rail capacity will also get a major boost from HS2, our national high speed rail network.

HS2 has the potential to transform the entire country’s social and economic geography.

But think about the potential positives for London:

– better connectivity and faster journeys between economy of London and the south east and the economies of the Midlands and the north

– our major cities brought closer to the capital and closer to the cities of Europe

– new opportunities, new markets and new customers for London’s businesses

This is a project that makes sense for Britain and London, which is why this government is giving it our full on, flat out backing.

Future sources of funding

As this audience will know, government grant funding for TfL – currently over £3bn a year – provides an important source of funding.

But in a world of constrained public sector resources we need to encourage other sources of investment too.

So we’re working with Treasury colleagues to accelerate major infrastructure investment, looking at new ways to unlock new sources of capital, from international sovereign wealth funds to UK pension funds.

And we also want to enable the Mayor and TfL and London boroughs to share in the profits of London’s growth, giving them an even greater incentive to invest in business-friendly measures, a positive spiral for London.

Reforms to local government finance will see part of TfL’s funding come from business rates in the capital, rather than traditional grant from central government.

This Business Rates Retention scheme, due to start in April 2013, will see London and other local authorities retain a share of the growth in business rates.

This is positive news for London.

It’s also a real incentive for the GLA, the Mayor and the boroughs to work with business to grow jobs and to grow prosperity.

Removing barriers to investment

This government understands that a modern economy needs a modern transport system.

So, for us, the DfT is as much a department for growth as it is as a Department for Transport.

But we also recognise that, to get Britain moving you need to do more than invest in infrastructure and regeneration.

You also have to knock down the barriers that get in the way of growth and development.

So, we’re also reforming our employment laws.

We’re modernising our planning regulations.

And we’re cutting corporation tax and getting rid of unnecessary regulations.

In other words, we’re freeing up our risk takers and wealth creators by giving business the room to grow and the conditions to invest.


In conclusion.

I’ve argued that, in large part, the prosperity of our capital and our country depends on the quality of our transport networks.

And I’ve set out some of the key steps we’re taking to modernise those vital networks.

Now, when we came to office, faced with the state of the national finances we could have taken the easy option.

We could have adopted a slash and burn approach to transport investment.

After all, it’s what governments have done in the past when the fiscal going got tough.

But just like the people in this audience we understand that there’s a heavy price to pay when transport networks are clogged up, stretched to breaking point or past their best.

And, just like, you we know that cost is measured in lower growth and fewer jobs, now and in the future.

So, if there’s just one message I’d like you to take away with you today, it is this – we have called time on worn out and run down transport infrastructure.

A government that’s driving through programmes and projects, investments and innovations that will transform our transport links and our economic prospects.

A government that is engaging in constructive partnership with the dynamic potential of the private sector, as well as building on the strengths of the public sector.

Coming together to make a real and last difference.

Working together to keep London and Britain moving.

Thank you.