The TransPennine Route Upgrade programme is expected to be the Government’s biggest single investment in our country’s existing railway in the next five years. We expect to make a decision later this year to progress the programme to the next phase of design and construction, during which we will confirm our approach to electrification and other improvement activity.

As part of its £500m investment in trains, TransPennine Express (TPE) is currently introducing three state-of-the-art fleets made up of 44 new trains into passenger service, which will provide 13 million extra seats a year once they are all in service in 2020. Passengers along the Huddersfield line will benefit from these high quality trains and their extra capacity - equivalent to a rise of more than 80 per cent on a seven day a week timetable across the TPE network.

The above demonstrates that this Government is committed to levelling up all parts of this country.

I am happy to meet the hon. Gentleman. I am very interested and cannot wait.

Transport for the North, the Department for Transport and the rail industry monitor timetable changes and agreed actions for the December 2018 timetable which gave passengers a more resilient service on the Huddersfield line. These measures have continued into 2019 and the planned introduction of new longer trains and timetable improvements for this December means further stability, faster services and increased capacity.

I have just received the proposals from Network Rail, and we are now reviewing them. My aim is to start this £3 billion upgrade within a matter of months. The project is due to really get under way next year. We are looking at all the different options but, as I have said, electrification will be part of the programme.

Completion of the Transpennine Route Upgrade (including electrification and delivery of key capacity and journey time benefits for passengers of the Transpennine line between Manchester-Stalybridge-Leeds-York) is currently in the development phase. This development work is expected to conclude in December 2017. The level of investment required from Government will be considered in early 2018, and, subject to a satisfactory business case, delivery would commence with a target completion by December 2022.

The electrification works on the railway line between Manchester and Stalybridge (Phase 5 of the North West Electrification Programme), due by December 2017 will see the installation of infrastructure and improvements to facilitate overhead electrification of the railway line, delivering journey time benefits for passengers in the north of England.

Good progress has been made on the design and planning aspects of the project. Canopy works at Stalybridge station have been completed to achieve high level clearance required for electrification, and track interventions have taken place on Phase 5 infrastructure, including track lowering and renewals to enable electrification. Detailed Design is progressing well and is at an advanced stage of development.

This is an extremely complex engineering project ensuring electrification is delivered alongside capacity and journey time improvements. Network Rail continue to work with their contractors to develop a delivery programme to maximise passenger benefits and minimise disruption to a busy passenger and freight rail corridor.

TransPennine Express plan to see new rolling stock deployed on the Manchester to Stalybridge line progressively from mid-2018.

Northern plan to deploy refurbished rolling stock on the Manchester to Stalybridge line and will introduce their fleet refurbishment programme progressively across the network from 2018 up until the end of 2019 which includes recovering seats, new floor coverings, Wi-Fi, LED lighting, and passenger information system.

The South East Flexible Ticketing programme is already under way. c2c and Govia Thameslink Railway already offer annual season tickets on smartcards. Abellio Greater Anglia, South West Trains and Southeastern will launch their products this year. Together, these five train operators cover 73% of the annual season ticket market.

The Department employed six individuals as contract staff at various times (sometimes covering the same role consecutively) for the Northern competition, and five for the TransPennine Competition. Costs of those staff were £1.203M and £1.275M respectively.

These costs however need to be set against the context of the deals achieved, whereby for Northern the amount of annual subsidy will be reduced by £160million by the end of the 9-year contract and for TransPennine the Government will receive £400million in premiums over the life of the franchise, compared to the previous situation where the franchise was subsidised.

Revenue risk for these two franchises lies with the franchisee, not the Department. This means the Department is not responsible for covering any shortfall in farebox revenue compared to the successful bidders' expectations.

The successful bids are backed by significant parent company support which can be called upon in life to ensure the liquidity ratios are met. Also both franchises were subjected to a financial robustness test as part of the bid evaluation process and considered low risk for the Department.

We are working towards a world class transport network that is supported by a ticketing system that makes it simple and easy to travel across the North by bus, tram, metro and rail. In the recent spending review, the Government committed up to £150 million of new funding to help make this vision a reality. By Budget 2016, Transport for the North will set out an implementation plan for the delivery of smart and integrated ticketing across local transport and rail services in the North over this parliament and beyond.

At the Pre-Qualification Questionnaire stage of the bidding process we assess applicants to ensure they have the right approaches and capabilities to operate a rail franchise. This includes assessment of their management approaches to safety/culture etc. and requires them to provide evidence of these practices. We assess purely on this evidence and if the applicant is successful, they will be able to compete for a franchise. Applicants are also required to inform us as the authority if circumstances change. We do not comment on the specific evidence provided to us as part of this process as it is commercially sensitive, however we are content that Arriva Rail North are an appropriate company to operate the franchise.

The department has not incurred any additional costs as a result of Sir Peter Hendy’s re-plan of the rail upgrade programme, which includes TransPennine, Midland Main Line, and Great Western Main Line electrification.

The administration of all the national cards, both mandatory and voluntary, is performed by a council, run as part of the Association of Train Operating Companies (ATOC). The council agrees the conditions of the schemes and any changes to the mandatory schemes have to be approved by the Secretary of State. All Train Operating Companies are obliged to participate in such schemes under the terms of their franchise agreements.

As it is for ATOC to suggest any change to the schemes, it would be for them to make such an assessment when proposing any change which would be reviewed before approval by the Secretary of State.

Rail North consists of Rail North Ltd (RNL) a company limited by guarantee and the Association of Rail North Partner Authorities ("the Association").The Association consists of 29 local transport authorities (including combined authorities and PTEs, county councils and unitary district councils). Its main function is to develop and oversee the implementation of a long-term rail strategy for the North; it also acts as a forum for liaison with Transport for the North on rail issues.

All member authorities of the Association are members of RNL, which is run by a Board of eleven elected councillors appointed by the member authorities on a geographical basis. However, important strategic and financial issues require the approval of the membership.These governance arrangements therefore provide all 29 local transport authorities a full opportunity to engage with Rail North on important rail issues affecting their area.

The costs of the project to procure the TransPennine Express rail franchise, to the end of November 2015, were £6.9M. Forecast costs to project completion, including project mobilisation, are expected to add a further £0.6M to this, making an estimated total of £7.5M by the end of the project. These figures include adviser costs (financial, technical and legal advisers), pay costs for the project team, “non-pay” costs (such as staff training, travel, bidder day seminar, consultation materials, etc) and VAT where applicable. The costs of procuring this franchise however need to be set against the context of a deal whereby the Government will receive £400million in premiums over the life of the franchise, compared to the previous situation where the franchise was subsidised. In addition, the franchise will deliver a transformation in services, with, for example, an overall capacity boost of nearly 70% across the region during the morning peak and doubling the number of Manchester to Newcastle services from December 2017.

The costs of the project to procure the Northern rail franchise, to the end of November 2015, were £8.0M. Forecast costs to project completion, including project mobilisation, are expected to add a further £0.6M to this, making an estimated total of £8.6M by the end of the project. These figures include adviser costs (financial, technical and legal advisers), pay costs for the project team, “non-pay” costs (such as staff training, travel, bidder day seminar, publicity, etc) and VAT where applicable.

The costs of procuring this franchise however need to be set against the context of a deal whereby the amount of annual subsidy will be reduced by £140million by the end of this 9-year contract. In addition, unlike the last Northern franchise in 2004 which included limited plans to invest in services or meet demand, this new franchise will deliver more than 2,000 extra services each week, nearly a 40% increase in capacity and the complete removal of the outdated and unpopular Pacers by the end of 2019.

The hon. Gentleman raises the delivery risk inherent in all these things. This is the biggest transformation project for more than 100 years, and he is absolutely right that it has to be funded with both Government money and third party asset sales. A huge amount of due diligence has gone into that work, which is ongoing, but we now have a plan and are confident that £38 billion will be committed and that 850 miles of track will be electrified.

Smart ticketing was taken forward by the Coalition Government after 2010. Five train operators, serving 73% of all rail season ticket holders in the South East, have now signed up to the South East Flexible Ticketing (SEFT) programme.

Smart season tickets are already available to customers on Govia Thameslink Railway and c2c. South West Trains and Abellio Greater Anglia plan to introduce smart seasons on their services in January 2016; Southeastern will follow at the end of 2016.

A new SEFT central back office, providing critical IT infrastructure and data processing capability, underwent testing in August 2015. This will enable train operators to consider a range of new products and services including automatic delay repay, flexible season tickets and loyalty schemes, and also to extend smart ticketing across a range of transport modes including rail, trams and buses.

In September 2015, Birmingham New Street station reopened with smart-enabled ticket barriers supported by the central back office.

On current plans, the South East Flexible Ticketing programme will complete in 2018.

I welcome the hon. Gentleman to his position. He talks about privatised railways leading to this kind of disaster. This is a great example of somebody who has not held ministerial office, or who has just been in opposition, being able to forget everything that happened in the past. I remember, however, what the Labour candidate for Mayor of London, the right hon. Member for Tooting (Sadiq Khan), said:

“one reason we are able to invest record sums in our railway service is the revenues that the franchises bring in and the premiums that they pay”.—[Official Report, 1 July 2009; Vol. 495, c. 430.]

We are seeing record investment in our railway because of how we are running it. At the time it was fully nationalised we saw a declining railway, a useless railway, a railway that was not fit for purpose—something the Labour party wants to go back to.