Contribution
As many Members will know, I joined the industry 20 years ago as a civil engineer. Throughout my career, I have been very fortunate to work on a lot of major infrastructure projects, including the lower Thames crossing, the A303 and some of the big National Highways frameworks, such as the specialist professional and technical services framework and the regional delivery partnership—the delivery integration partner framework. I now chair the all-party parliamentary group on infrastructure, so I come at this Bill as someone who has priced and bid for major contracts and has seen what happens when the money just is not there.
However, I thought I would start my contribution to this debate with a safety moment. Members who have been around the sector will know that safety culture is absolutely critical to delivering our road network and doing so safely, and a safety moment that has always stuck with me is one from National Highways. It is about a lady who I am going to call Jane. Jane had had a busy day at National Highways; she jumped in her car, was driving home, and was involved in a very low-speed traffic collision. When she hit the car in front, her airbag went off and caused her lanyard to be forced through her chest, and she ended up in hospital. That is always a good reminder—when you leave today, if you are rushing to your car to drive home, remove your lanyard, not only for your security but for your safety.
Let me now turn to why this Bill matters to Northampton. Why is an MP for Northampton talking about a scheme in Essex and Kent? Well, Northampton sits at the heart of the logistics network: some 2,640 logistics businesses operate out of Northamptonshire, and 35,000 people in my county work in haulage and logistics. Every day, goods move between warehouses in my constituency and the channel ports, many of them crossing the Thames via Dartford, and when Dartford jams up, those costs are felt in my constituency and across the midlands. I support this Bill—I think it is the right thing to do to deal with that problem—but I agree with the Road Haulage Association and many hauliers that we must also consider the cost for freight operators. When the licensing agreements come forward, we must consider the considerable business and fuel costs that many businesses in my constituency are facing.
Planning has long been the biggest barrier to building roads. In particular, the development consent order process for the lower Thames crossing has been torturous—unfortunately, I know that at first hand. The second biggest barrier, though, has often been money. The Treasury can only fund so many projects at any one time, and every project competes for the same pot. This Bill brings in the private capital to build things that would otherwise sit in the queue. I have long argued that private finance works in this sector; when the Silvertown tunnel opened last year, it showed that modern public-private partnerships can deliver for taxpayers, and I still believe that.
However, having spoken to the Minister previously responsible and now to the current Minister, I want to be straight with this House. This is an ambitious thing that we are doing. I do not believe that the regulated asset base model is used elsewhere in the world for road infrastructure; traditionally, we see it delivered through concessions or availability-based public-private partnerships. I was initially concerned, so rather than shouting at the Department about where the money is coming from, I went out and spoke to industry. Through the Global Infrastructure Investor Association and some of the big advisers to the investment community, I spoke to investors about this project, and they said that this is actually quite an exciting opportunity, particularly because it should reduce the cost of capital. Creating a regulated return reviewed by an independent regulator should deliver cheaper finance and, importantly, more competition for that finance, so it is completely right that the Department cannot say who is funding this project yet, because we need to run the competition to get that funding in the first place. The more certainty we give to the market through a model such as this one, the better our chances of securing that finance at a much lower cost.