When the Government will publish a national homelessness strategy. [36643]

We have announced the establishment of a new directorate within the Department to co-ordinate action to tackle homelessness. I have asked it to report to me as a matter of urgency on the steps that need to be taken to address this issue.

The House and the country will be glad that the Homelessness Act 2002 gives us the basis for moving forward, and we welcome the Government's initiative in that direction Will the Secretary of State confirm that the record number of homeless families in temporary accommodation who are waiting for a permanent home will form part of the discussions between him and the Treasury about funding the strategy? Will he assure us that in cases of family breakdown, those who leave the family home, particularly because of fear of violence, will immediately be accommodated safely, rather than having a harrowing wait before they find alternative secure accommodation?

I thank the hon. Gentleman for his warm welcome for the Homelessness Act. I was pleased that it was the first measure introduced after the general election last June and that it got Royal Assent last week. The hon. Gentleman will be aware that we amended the Bill as it was going through the House to ensure that, where a relationship breaks down, the interests of children are put first, which is a positive change. The hon. Gentleman points out that, for a variety of reasons, the number of families in temporary accommodation is increasing, which is a matter for real concern. Young children are being denied life chances because they do not have somewhere that they can call their home. In facing the challenges in housing, we must ensure that we can deliver for those young children.

Who will be responsible for monitoring the efficacy of the homelessness strategy? Will it be the homelessness directorate? Will my right hon. Friend ensure that any national strategy will incorporate what would work most efficiently within the Greater London area, which is a pan-London strategy in partnership not only with the Association of London Government but with the Greater London Authority?

My hon. Friend makes a very important point about the situation in London, particularly as it is clear that individual housing authorities alone cannot solve the deep-seated housing problems faced by London. There has to be a pan-London approach to the issue, and that is something that the newly established directorate is looking at carefully. We will be monitoring the strategy ourselves, but a variety of voluntary organisations will be looking closely at how we are delivering this important part of my Department's agenda. I believe that in this Parliament housing will move towards the top of the political agenda.

Does the Secretary of State accept that if he had spent a bit more time putting roofs over the heads of families who need them and less time giving house room to the likes of Jo Moore, we would not now have a situation in which the number of families in bed-and-breakfast accommodation has increased by 152 per cent. and the number of empty council houses in England has increased by 6,000 since 1997? What has he got to say about that sort of record?

The increase of 6,000 in the number of empty homes sounds significant, but what the hon. Gentleman did not say is that there are 750,000 empty homes in the United Kingdom, so perhaps 6,000 is not too many. As he should know, in last year's Budget we introduced measures to bring empty properties back into use, such as 100 per cent. capital allowances to convert space above shops into flats and a reduced rate of 5 per cent. for VAT on the cost of renovating homes that have been empty for over three years. We are taking action to deal with empty homes; the Conservative party in government did absolutely nothing.

While I welcome the homelessness strategy, I hope that it will not apply to people whom councils have spent months trying to evict. Will my right hon. Friend assure us that when councils get rid of such tenants, they will not get in somewhere else through the back door as a result of the strategy?

My hon. Friend makes an important point. His constituency is just south of mine on the River Tyne, and we share similar problems, even if one football team is doing better than the other.

In considering his homelessness strategy, the Secretary of State will wish to think about the number of rough sleepers, which has been artificially massaged down. Is he aware of the press release issued by the Transport and General Workers Union on behalf of independent charities, which alleges that the rough sleepers unit used public money to pay for rough sleepers to stay in bed-and-breakfast accommodation and states that outreach workers were pressurised into not declaring the full number of rough sleepers? It also alleges that rolling shelter beds were left empty for a month before the count, and that four hostels had dining rooms turned into bedrooms—all to massage the figures down artificially. Will the Secretary of State announce today that he will hold an inquiry into that, and if he will not, will he accede to the request from Shelter and the Simon communities to hold a meeting to discuss the allegations?

What the hon. Gentleman has not said is that the methodology used in the rough sleeper count was constructed not by this Government, but under the Conservative Government in 1996. The voluntary agencies that conducted the survey followed the methodology agreed by that Administration. The hon. Gentleman may shake his head, but those are the facts. He does not like the facts to get in the way of his prejudices, but we all know that the Conservative approach to rough sleepers was well stated by a former Cabinet Minister who spoke about the inconvenience of coming out of the opera and having to step over people sleeping in the doorway. For the Tory party, rough sleepers are an inconvenience to be ignored—[Interruption.]

Order. I call the next question.

What recent assessment he has made of the need for new passenger rail services to relieve motorway congestion in the east midlands. [36645]

As my hon. Friend may be aware, we are currently conducting a programme of regional multi-modal studies, including several involving the east midlands region. The studies are assessing demand for all modes of travel to 2021, including public transport, road use and motorway congestion. Recommendations to Ministers are expected shortly.

I thank the Minister for that answer and for visiting north-west Leicestershire 11 days ago for a briefing on the national forest rail line project in my area and in south Derbyshire. When he receives the conclusions of the MI multi-modal study for the east midlands, will he examine carefully any reference to that project in the light of the information that he has received? Will he do his best to arm-wrestle the Chancellor for the necessary funding, which is but a small fraction of the £60 billion rail investment announced two years ago? That investment works out at £100 million for each constituency, and a small amount would do a lot of good.

My hon. Friend makes a strong case for his constituency, just as he and representatives of his local authorities did when I visited his area. I shall bear in mind the comments that I heard then when we receive the multi-modal studies. My hon. Friend and his colleagues sought to tackle the issues in the interests of their constituents by considering new communities in the area and new modes of travel. We shall consider those issues in his and in other areas when we make our assessment of how to remedy the substantial under-investment that we inherited from the Conservative Government.

I am sure that the Minister will have seen the letter that I received from the Secretary of State this week. I had raised with him the matter of the statement by the Strategic Rail Authority about East Midlands Parkway station. How can we take seriously anything from a Department that sends a letter to a Member of Parliament stating:

"I understand from the SRA that the May 2003 opening date given in the Strategic Plan was an inadvertent error"?

I am not sure whether the hon. Gentleman was asking for that particular project. He was probably not making his presentation in such an approachable way as my hon. Friend the Member for North-West Leicestershire (David Taylor). As I understand it, there was a straightforward error by the Strategic Rail Authority, for which it has apologised. In spite of the hon. Gentleman's protestations, we will certainly give the matter proper consideration, so as to extend travel opportunities, comfort and facilities for travellers right across the east midlands. I guarantee to the hon. Gentleman that I shall look into the matter for him.

Ilkeston is the only town of its size in the east midlands without a railway station. A project for a station there has been identified by the SRA and by a multi-modal study. The problem is the Trent junction signalling box, which needs to be upgraded before capacity can be improved. Unfortunately, that upgrading will not take place for quite some time. May I urge my hon. Friend to look at the issue, and to do all that he can to bring that project forward so that capacity in the area can be increased?

The Strategic Rail Authority and Railtrack are looking at a number of the constraints and bottlenecks in the railway system, in respect of which they could make a considerable cost-effective enhancement to facilities. That is extremely important because, previously, Railtrack seemed to be far more focused—although not particularly effectively—on the major projects, and did not look at running the system that it already had. We are already seeing a significant improvement in Railtrack's attitude and performance.

What recent representations he has received on the expansion of rail freight. [36646]

Both my Department and the Strategic Rail Authority regularly receive representations from interested parties promoting the expansion of rail freight. The scope of these contacts is wide ranging. I am sure that the hon. Gentleman is as encouraged as I am that, after years of decline, there has been a 20 per cent. increase in the amount of freight on the railway lines since 1997.

The Minister will be aware that the Government's target for the increase in rail freight is 80 per cent., and some 43 per cent. of that needs to be delivered through the completion of the west coast main line. What is the projected mix of passengers and freight on that line, given its crucial importance to the Scottish economy? Exactly when is it going to be rescued from its current state of chaos?

The SRA is looking closely at the west coast main line with a view to increasing the amount of passenger and freight traffic. It may have been a temporary lapse of memory that caused the hon. Gentleman not to mention the substantial amount of funding that Scotland has derived from the rail freight grant, not least for the Nith valley project near his constituency, which received £1 million for the Thornhill loop in June 2000.

Is my hon. Friend aware that, before we can encourage more freight on to the railways, we have to maintain our existing services? Will he please give an undertaking that the French Government will be told in no uncertain terms that firms in my constituency are about to go bankrupt because of the attitude of the French authorities to the constant pressure of people trying to get on to freight trains on the other side of the channel tunnel, and that that will not be allowed to continue because it is putting drivers and would-be immigrants at risk?

I thank my hon. Friend for her justifiable concern in this important matter. The restrictions and their impact are of considerable concern to the Government. We are exerting pressure at the highest levels to get the French Government to restore the freight service without further disruption. The French Government have taken the extremely helpful step of changing French law to give United Kingdom immigration officials authority on the Eurostar while they are on French soil. Since February, we have even had the power to check the papers of those who are making internal journeys in France, which is an unprecedented extension of our powers. My hon. Friend raises important matters with regard to freight and they are being dealt with at the highest level by the Government.

I am afraid that the hon. Gentleman has misunderstood the question. The question was not about checking papers but about freight and people smuggling themselves on to freight trains. In a written answer to me dated 30 January 2002 the Minister promised that work to strengthen the fencing was under way and due to be completed by mid-February. He also said that he had received assurances that security measures and a police presence would be put in place. That increased fencing turns out to be little more than 3 m high, flimsy and little better than chicken wire. Not surprisingly, last week 200 m of that was pulled down and there is no sign of the French CRS police. It is little wonder that business is losing confidence. The Scottish whisky industry no longer uses the tunnel, large paper manufacturers no longer use the tunnel and major freight companies are going into bankruptcy. When will the Government do something about that? It is time that they ended the pointless civil war inside the Department, stopped attacking civil servants, and stood up for Britain rather than a departed spin doctor.

I am afraid that the hon. Gentleman rather lost the plot at the end of his question. While the Government concentrate on the problems of the channel tunnel, he concentrates on the problems of personalties. Many of the matters that he just mentioned have been dealt with already. Unfortunately, he looked rather pleased when he said that some of the measures that had been taken were not working. The Government are concerned—[Interruption.] If the hon. Gentleman would stop wagging his finger for a moment and listen to what I am saying, it might be beneficial to the House. The hon. Gentleman is clearly rattled by the answer that he is getting and does not like it. I can assure him that the issues that my hon. Friend the Member for Crewe and Nantwich (Mrs. Dunwoody) raised in a serious manner in the context of current discussions are being addressed at the very highest level, and that many of the measures that we have put in place, or have asked the French to put in place, are working.

What discussions he has had with the Strategic Rail Authority on the allocation of track space on the west coast main line between different operators. [36647]

The Strategic Rail Authority is leading a review, with the input of principal stakeholders, of the outputs to be delivered from the west coast upgrade, including an assessment of how capacity should he utilised to meet the requirements of the many different users of the line. The SRA is keeping the Department in touch with developments.

My right hon. Friend will be aware that my constituents, although pleased about the upgrade and its effect on inter-city services, are seriously concerned about Virgin having exclusive use of the fast lines and squeezing everyone else on to the slow lines. In particular, we are concerned about a deterioration in the county services that commuters use heavily in the mornings and evenings and about the loss of the Rugby to Brighton service north of Watford. Will he assure me that the Strategic Rail Authority will give proper consideration to the needs of all my constituents and those of my hon. Friends who represent Northampton and Watford, and not just consider the Virgin—

Order.

Order.

That was rather ungallant of Opposition Members as a serious point was being made. It is clear from this afternoon's proceedings that Opposition Members are not interested in making serious points on behalf of their constituents; they are interested only in point scoring.

The Government have paid a great deal of attention to the west coast main line, but they have quietly dropped from their 10-year plan proposals to build crossrail and to upgrade the Great Western line. Is that related to the fact that, according to the Department's own forecast, public sector investment in the railways will be 30 per cent. lower in 2010 than it was in 1995?

That is fine cheek, coming from a member of a party that did nothing about crossrail when in government. We are working with the City, Transport for London and the Strategic Rail Authority to decide on the paths for the project. The project has always been long term and has nothing to do with the 10-year plan. We would not have to deal with the issue now if the hon. Gentleman's party had got on with it a lot earlier.

Does my right hon. Friend accept that, although commuters in Greater Manchester are prepared to put up with a deterioration in the service while the west coast main line is being upgraded, they want the certainty that services will be restored to at least their former level, if not improved?

I will draw my hon. Friend's comments to the attention of the SRA, which, as I said, is involved in ongoing discussions with train operators and other operators on the line. As he fully understands and as he pointed out to his constituents, some disruption will occur while the line is being modernised, but there will be considerable improvements for rail travellers and a shift in passenger transport.

What representations from environmental groups he has received concerning the planning Green Paper. [36648]

Quite a number of environmental groups have written to Members of Parliament, who have passed on that correspondence to Ministers. In addition, there have been more than 3,000 responses to the consultation exercise, of which about 2,000 were from environmental groups or their members.

Who in the Minister's Department will be available to assist in considering representations on the Green Paper from environmental groups, now that Jo Moore, Martin Sixsmith and Ian Jones are not available? More to the point, will she confirm whether Martin Sixsmith is or is not available, given that some dispute exists as to whether he officially resigned?

I hate to disappoint the hon. Gentleman, but the consultation exercise arrangement has always been that the responses will be sifted and analysed by external consultants on our behalf.

Can my hon. Friend tell the House how many of the organisations that responded to the planning Green Paper raised issues about telecommunication masts and planning procedures relating to their location?

We have yet to analyse the responses. Most of them—about 2,500—have come in the past week, doubtless in response to the campaign by environmental groups. We receive many submissions about telecoms masts and they are always considered very carefully. We also take up matters directly with some operators.

I entirely support the Government's approach to the sensitive environmental considerations associated with building 3.75 million new houses in Britain by 2011. However, how does the Minister reconcile that with a fast-track approach to major public building infrastructure works which downgrades the environment and regards it as of little significance? How does she square those two approaches to the environment?

The Green Paper repeatedly emphasises the fact that we take environmental issues and the importance of community involvement very seriously. It contains a number 01 recommendations that benefit community groups and the environment.

Can my hon. Friend tell us whether there have been any submissions about the misuse of planning law by environmental groups when it is quite clear that the will of the people in an area is in favour of a development? Groups misuse planning law, especially on the village green issue, filibustering and wasting millions of pounds of taxpayers' money, when what is wanted is much-needed industrial development.

I thank my hon. Friend for that question. One of the aims of the planning Green Paper is to provide a system that is more transparent and is not held hostage by filibustering tactics, but that can be well used by community groups to enable them to put their views directly and not turn planning inquiries into what has been called a banquet for banisters.

What the estimated cost to date is of Railtrack being in administration. [36649]

We estimate that the total amount so far drawn down from the commercial loan facility—

Where's Byers?

Order. The House must come to order.

All I can say about that outburst is that it was one that they prepared earlier.

I listened carefully to the Minister's answer, but is not the real economic cost far higher? Taken together, more expensive financing, higher performance targets and tens of millions in lost efficiency savings will mean that the real cost of Railtrack administration will be £400 million this year, and more like £1.75 billion cumulatively to 2006. Given the Secretary of State's record for factual inaccuracy, would the Minister care to revisit his answer and tell the poor old British travelling public what the real cost of the Labour Railtrack fiasco will be?

I can tell the hon. Gentleman what the cost of Railtrack is. It is a failed privatisation. It did not have a clue about its own assets. It could not run its programmes. It went from £2.3 billion estimated expenditure on the west coast main line to between £6 billion and £7 billion and rising, and it was not able to organise its contractors. If the hon. Gentleman actually talked to the operators in the industry, he would know that they found Railtrack to be out of touch and incompetent. They have already seen considerable progress under John Annitt, who is a respected figure from the construction industry. There has been a change of attitude and a change of practice. Travellers will welcome that, because it is delivering the rail service that they want. By his question, the hon. Gentleman shows yet again how out of touch the Conservative party is on this issue.

Does my right hon. Friend recognise that the process that led to the administration of Railtrack—both the ending of that debacle and the role played by the Secretary of State—has been warmly welcomed, especially by Labour Members? Is he also aware of the concern that creating yet another company—even one limited by guarantee—is bound to lead to more damaging fragmentation of the industry?

My hon. Friend is absolutely right about the fragmentation of the industry. I am sure that he is pleased about the measures that the Strategic Rail Authority is taking to consolidate the operator side of the industry.

Is the Minister aware that the cost being suffered by my constituents is a one-third increase in delays since the effective renationalisation of Railtrack? They want a Secretary of State who will focus on making the trains arrive as rapidly as his information officers depart. They are not interested in those people; but how can they trust a Secretary of State who has seen resign—or has sacked, or disowned—the chairman of the Strategic Rail Authority, the chairman of Railtrack, the franchising director, and that other fellow, Winsor? All those people were appointed by the Secretary of State, or by his Government. How can my constituents trust him if he cannot retain the trust of those whom he appointed?

As well as giving an unmitigated endorsement to the old Railtrack, the right hon. Gentleman seems to favour the whole of the failed structure. I would expect the great majority of those in the industry to consider the new chairmen of the Strategic Rail Authority and Railtrack a considerable improvement, and indeed we are already seeing progress.

Is the Minister aware that the British people were fed up to the back teeth with handing over billions of pounds to a few people in Railtrack? At some point, it had to stop. Let me suggest a precursor to the company going into public ownership—I hope that is the idea—and point out that, shortly, one or two other companies might be going for a song. Let me say this, to the fury of the Tories and the press: snap them up. It might result in a few top civil servants effing and blinding and all the rest, but we should not worry about that. The British people out there want to get rid of the way in which the railway companies were assembled by the Tories—lining the pockets of their friends—and make sure that travelling by rail benefits all the British people.

What I am sure the British public want, and what freight operators want, is a rail system that works efficiently and effectively. We will introduce the mechanism that will best ensure that. The key is that we do not start with any ideological predisposition towards one course or another—unlike the bunch on the Opposition Benches, who could see only one way. That is why they made such a mess of things.

The Secretary of State was right to put Railtrack into administration, even though he waited too long and the process was badly executed. However, private consortiums will be running London underground for the next 30 years. Will the Minister explain why, if they fail to perform adequately, the next Secretary of State will not be able to terminate their contracts, or put them into administration?

Quite simply, if the consortiums fail, there will be provision for taking over their work. There must always be a default position. I hope that the hon. Gentleman and his friends on the Greater London Assembly will use what influence they have in Transport for London to urge all concerned to get on with the contracts and to start to deliver benefits for the people of London. The bodies involved should start getting in the investment that the infrastructure so desperately needs. The system will have to cater for a considerable number of extra travellers as a result of the million extra jobs created in the economy since the Government took office.

What role regional assemblies will have in the determination of planning decisions and housing and transport policy. [36650]

The forthcoming regional governance White Paper will set out our proposals for the functions of elected regional assemblies.

In what ways will abolishing a county council in Aylesbury so that powers can be transferred to a regional assembly in Guildford or Reading bring government closer to local people?

The hon. Gentleman seems to be under the misapprehension that the purpose of regional government is to suck powers up from local government. I cannot guarantee that regional assemblies will draw no functions from local government, but any such cases will be very much the exception. Local government will remain the community champion and chief service deliverer, whereas regional government will lead in the development of the strategic vision for the region. Our programme of reform is about ensuring that local government deals with local services, that regional government deals with regional priorities. and that Westminster deals with issues of national importance.

Is my hon. Friend aware that regional bodies on both sides of the Pennines wholly support the proposal by Central Trains to reopen a tunnel for rail freight under the Pennines? That matter was commented on by the House a short time ago. Does my hon. Friend accept that, on strategic transport policies of that sort, it is crucial to take note of the wishes of regional bodies? Does he agree that they will play an extremely important role when they are fully established?

My hon. Friend makes an important point. It is essential that accountable regional bodies take careful note of the benefits that can accrue to regions as a result of collaboration—both between regions, and with regard to projects within regions. My hon. Friend will have noted that the Green Paper entitled "Planning: Delivering a Fundamental Change" envisages that elected regional assemblies will take over strategic regional planning functions, among other things.

Why did the Minister evade the question asked by my hon. Friend the Member for Aylesbury (Mr. Lidington), who suggested that the creation of these absurd regional bodies would lead to the demise of county councils? Will the Minister confirm that that is what would happen?

The hon. Gentleman seems to have had something of a memory lapse. He should recall that the previous Conservative Government introduced a series of unelected regional bodies. They sucked power up into the regions, but they were not accountable. One of the purposes behind developing elected regional assemblies is to ensure that power is accountable, and is exercised at the appropriate level. Regional activities will be accountable at regional government level, and local activities will be accountable at local government level.

Whatever powers are eventually devolved to regional assemblies, there is a growing feeling in the north-east—among sporting personalities and people in entertainment, as well as among politicians—that the area needs a strong regional voice. Will my hon. Friend say when we can expect the White Paper on the matter? Will he confirm that the timetable to which the Government are working would allow a referendum in the north-east before the end of this Parliament?

My right hon. Friend makes the important point that in the north-east keen interest has been expressed from a variety of sources in the idea of an elected regional assembly. He can expect the forthcoming regional government White Paper to appear shortly. Among others things, it will set out the timetable for early referendums when the creation of regional assemblies on an elected basis is regarded as desirable.

Whatever the future role of regional assemblies, what steps are the Minister and his Department taking to ensure co-operation with the Northern Ireland Assembly, the Scottish Parliament and the Welsh Assembly to bring about a strategic, co-ordinated transport policy for the whole United Kingdom?

The hon. Gentleman should know that the Government, my Department and the devolved governments of the regions and nations of Great Britain undertake regular discussions on issues of mutual strategic importance. Those discussions are proving useful in terms of the sort of issues that he has raised.

Does the Minister agree with the headline in a recent edition of the Local Government Chronicle, suggesting that the Prime Minister is selling the counties out? Will the Minister tell the House whether the Government intend to sell the counties out?

Not only do we not intend to sell the counties out, but we intend to ensure that elected regional assemblies will be created only when people in the region concerned want those assemblies to be created on an elected basis. Therefore, the idea that there is a plan for the extinction of county councils, regardless of the popular feeling in the regions, is completely untenable.

I welcome my hon. Friend's determination and that of the Secretary of State to honour the manifesto commitment on the introduction of regional assemblies. I agree that it is not so much about creating an extra tier of government as about democratising an existing tier, and giving that tier back to the regions where it belongs. May I also press my hon. Friend on timing? Will he confirm that the publication of the White Paper will be accompanied by a proper period of consultation, and that legislation this autumn to pave the way for referendums will not be ruled out?

I confirm that the White Paper will be published shortly, will contain substantial proposals about the functions and working of elected regional assemblies and will set out a timetable according to which discussions will take place. An opportunity will be provided for full consultation on the way forward set out in the White Paper.

What progress the bed and breakfast unit has made in reducing the number of homeless households in bed-and-breakfast accommodation. [36651]

In September last year, 12,500 households were in bed-and-breakfast accommodation, of which some 6,500 were families with children. I regard that figure as unacceptably high. Based on the advice of the bed and breakfast unit, I hope to be able to make an announcement on the steps that we intend to take to reduce this number in the near future.

What estimate has the unit and the Secretary of State made of the additional demand for bed-and-breakfast accommodation as a result of new Government regulations in June that will substantially increase the number of homeless people to be rehoused by councils? Does he not recognise that this will cause severe problems for councils such as mine that are chronically short of social housing? To head off the pending crisis, will he therefore speak to his colleagues in the Department for Work and Pensions about reforming the system of housing benefit to enable social landlords to lease private accommodation for the homeless?

The hon. Gentleman raises an important issue about the relationship between housing benefit and the use of accommodation. It is one of a range of issues that we are considering in the context of making an announcement in the near future on how we intend to tackle the increasing number of households and families with children in bed-and-breakfast accommodation. The number is going up dramatically and that has to be brought to an end, but in a positive way in terms of the good accommodation that we should be able to offer to those who have to suffer bed-and-breakfast accommodation. We take this issue seriously and we will be making an announcement in the near future.

Is my right hon. Friend aware that the number of social housing units for rent in London has plummeted since the mid-1990s? Does he agree that supply is the key? Will he do what he can to ensure that we get a settlement from the Treasury to tackle not only the crisis in bed-and-breakfast accommodation but the equally serious crisis that underpins it of chronic overcrowding? It is twice as high in London as it is in any other part of the country, leading to catastrophic consequences for families with children.

My hon. Friend is a strong campaigner for decent housing for families with children. I would like to think that we will be able to respond positively to her representations and many of those made by my hon. Friends. It is a question of funding, and we are putting in additional resources. It is also a question of developers facing their obligations, particularly in London and the south-east. At present, we are able, through the planning process, to put obligations on affordable housing only where it is residential accommodation for which planning is proposed. It would make a lot of sense if we could put such an obligation on a commercial development that was proposed. We are consulting on whether such an obligation should be introduced.

What progress he has made on proposals for elected regional Government in England. [36652]

We are making good progress. A White Paper on regional governance will be presented to Parliament by the Deputy Prime Minister as soon as it is ready. It will set out the Government's plans for taking forward our manifesto commitment on elected regional government.

I thank my right hon. Friend for that answer, but I wished for a date to be given. There is lively debate in the regions on the pros and cons of regional government. Can my right hon. Friend tell us in broad terms what benefits he believes will flow to the regions that adopt the regional assembly approach? Furthermore, will the option for regional assemblies be open only to those areas that have unitary rather than two-tier government?

As my hon. Friend rightly points out, a debate is taking place, with different views emerging in various parts of the country. It is our view that people should have the opportunity, through a referendum, to determine the appropriate outcome in their region. A number of regions feel strongly that there would be benefits in having an elected regional assembly to give greater regional focus to economic development and related policies and to introduce a proper democratic framework to govern the activity of organisations that are accountable only to Ministers or are unelected quangos. Those regions perceive clear benefits in having an elected regional assembly.

Is the right hon. Gentleman aware of the considerable need to review regional boundaries? The south-east Dorset conurbation, for example, has no road or rail communications worth talking about with the proposed regional seat of government. The Highways Agency now deals with this under a central southern region, shown on all its maps. Is the right hon. Gentleman now considering a central southern region?

The hon. Gentleman has been around a long time and knows from experience that debates on boundaries are almost guaranteed to generate a long, protracted and not terribly productive outcome. For that reason, the Government have formed the view that it is right to work in the first instance on the basis of the government regions, as defined for the Government offices, which will provide sound building blocks. However, the hon. Gentleman will have to wait for the publication of the White Paper to see in detail how we propose to take forward the boundary arrangements for elected regional authorities.

If voting in the referendum for regional government dictates the end of the county council tier, what implications will that have in any future reorganisation of local government? Would not a further referendum have to be held before a future Government could get rid of county councils?

As my hon. Friend the Under-Secretary made clear earlier, there is no agenda for the abolition of county councils, but we recognise the need to look at the relationship of local government to elected regional assemblies, where people determine through referendums that they want an elected regional assembly in their area. The precise way in which that will be handled will be spelt out in the White Paper.

If he will make a statement on the progress towards establishing a company limited by guarantee to take over Railtrack plc's responsibilities relating to running the network. [36653]

The team that has been engaged by the Strategic Rail Authority to develop a bid based on the concept of a company limited by guarantee is currently preparing its proposal. All potential bidders are aware that the administrator and the Government would like to keep the period of administration as short as possible.

I thank the Secretary of State for that response. What does the right hon. Gentleman expect the public expenditure required by the new company to be, and how much will be generated by private investment? Will that entail more moneys from the Treasury, over and above what has already been announced as part of the 10-year plan?

We shall have to await the business case that will be put by the hid team for the company limited by guarantee. Any bidder will have access to Government grant and track access charges and will be able to borrow on the financial markets on the basis of those two secured revenue streams. That is the current situation, but obviously the detail will depend on the proposal and the business case made by the company limited by guarantee or any other bidder.

When my right hon. Friend next talks to Railtrack, will he ask whether something can be done about the Oulton Broad North level crossing? Because of an antiquated signalling system, the gates have to be lowered manually and are left down for five minutes to allow the passage of a two-carriage local train, thus blocking off one of the only two roads through the area. Does my right hon. Friend agree that we need an integrated approach if the proposal made by Anglia Railways for more trains between Lowestoft and Norwich is not to cause chaos on the roads?

As it happens, I know the Oulton Broad North level crossing extremely well. I was on my way to campaign for my hon. Friend in the general election last year—successfully, of course—and, as all campaigners will understand, I was running behind schedule and then the level crossing gates came down, manually. It was even more frustrating because I wanted to be with my hon. Friend. My hon. Friend has made an important point: we need to ensure that investment goes into the network. That includes the Oulton Broad North level crossing as well as the west coast main line.

The Secretary of State has an entire Department of civil servants at his disposal—although the number is falling by the day. He has external consultants to advise him on the planning Green Paper, external consultants to advise him on his relations with the City and, of course, external consultants to advise the bidder for the company limited by guarantee. Is the SRA's cost for putting together a bid for a company limited by guarantee counted as public sector investment'?

The SRA is meeting the costs of the bid team from within its resources and will be accounted accordingly.

So it comes within the public sector.

There are important issues that need to be addressed. Whether it is the hon. Lady saying bye-bye to me, or me saying bye-bye to her, time will tell. Under the 10-year plan, £64.9 billion will be invested in the railways. Those are the figures and that is the money that will be invested. The hon. Lady should not rely on the comments made in some of the newspapers. Those are the figures and that is the amount that will be delivered. The important issue for the Government and for me is that, whereas the hon. Lady may reflect the priorities of the Westminster village, the Government and I will deliver on the priorities of the people of our country. Those priorities are improving our transport system, decent housing for our people, regeneration of our economy and ensuring that we deliver for all our people. That is what I intend to do, and that is what I shall continue to do.