Hansard

When I took office as Minister for Transport and Telecommunications, I took responsibility for the greatest sustained investment in Scotland's transport system in decades. Transport spending has increased substantially since devolution. In 1999, transport spending was £345 million. Since then, as a result of our commitment to and focus on investment and the transfer of new rail powers to Scottish ministers, the transport budget has risen to £1,649 million in 2006-07 and £1,694 million in 2007-08.

The programme of public transport investment has arisen from the major commitments on infrastructure investment in our partnership agreement. It is a major opportunity for Scotland to improve our infrastructure, improve our economy and improve the travel choices for passengers and freight.

We need to be bold to make the projects happen, but we must have realistic and credible delivery plans to turn the plans into reality. I stated in Parliament last year that I wanted our capital transport plan for new rail and road investment to deliver on time and against budget.

I am here today to update Parliament on progress. Before I turn to the programme of major public transport projects, I will say a little about progress on the significant investments that we are making in improving strategic roads. Our major roads programme is aimed at reducing congestion on the network, tackling pinch points and completing the strategic motorway and road links. The investment supports the Government's principal objective of growing Scotland's economy.

We will build the Aberdeen western peripheral road. Detailed engineering and environmental work is now progressing, with the aim of narrowing down the line of the road corridor next month. I understand the obvious worries of local people and can say today that the Stonehaven link will not be an upgrade of the existing Netherley road. Where the corridor reaches Milltimber, we are working hard to reduce the impact of the route. I can confirm that the route will not affect any properties in Peterculter village and that where the route passes Milltimber village no options are being considered to the east of the route that was previously consulted on. We will bring forward draft road orders at the end of the year.

The contract for the new Kincardine bridge was let earlier this month. Construction work is expected to be under way by the summer and we will complete the bridge in 2008. Proposals for upgrading the A8 between Baillieston and Newhouse will be published in the next few weeks.

I expect the major roads programme to hit budgets and be delivered on time.

For our major public transport projects, I am establishing—for the first time—a rigorous baseline against which I expect projects to be delivered. I will today present a programme that is realistic, affordable and deliverable. It is all about delivery. We need to be clear about what stands in the way of delivery and must overcome those obstacles. That is the challenge that I have laid down to Transport Scotland, the promoters of the major projects and the rail industry as a whole. It is a challenge that I expect them to meet.

In presenting the programme today, I tackle one of the perennial problems that face the construction industry as a whole and the rail industry in particular: establishing the expected price of a scheme. By stating today the expected outturn cost of schemes, I will allow all those involved to focus clearly on delivering to budget. Furthermore, our transport and works bill aims to improve the process for the future.

This is an ambitious programme. We must ensure that overall it remains affordable and provides value for money as we move through its delivery. We are committed to applying best practice in procurement, to setting challenging milestones and to making best use of the gateway review process. The focus is not only on individual projects. I have asked officials to consider the affordability of the programme as a whole and how it would be affected if in future there were any changes to the timing or the costs of the individual elements of the programme.

Rail devolution gives us a new option for funding rail projects. It offers an alternative form of public-private partnership, working in strategic partnership with Network Rail. Such an approach makes the best use of Network Rail's expertise in delivering rail infrastructure enhancements. However, as with any public-private partnership project, we need to be convinced that that method of procurement offers best value for money.

I will outline where we are on the individual projects, state what we believe to be a realistic target and highlight any changes from information given to Parliament previously.

The Larkhall to Milngavie rail project has relieved a pinch point on the northern Glasgow rail network and opened up economic opportunities for the people of Larkhall. We have delivered the first new branch line in 25 years by reopening the Larkhall branch. The new line was delivered by a partnership between Strathclyde Passenger Transport and Network Rail. It took a long time to get the project moving, but once we did so the project came in on time and on budget. In the 70 days for which the Larkhall line has been open, 68,749 people have used it, which is 34 per cent above projected passenger numbers. The fact that a new rail line has been opened and passenger numbers have increased shows that the investment is already paying dividends.

At a time when other parts of the United Kingdom have struggled to deliver enhancements, we have shown that we in Scotland are capable of breaking the mould and getting things done. We must build on that. I want the completion of projects on time and on budget to be the norm, not the exception.

Our investment in the Stirling-Alloa-Kincardine line will connect Alloa to the rail network; improve the efficiency of the transport of coal to Longannet power station, which generates 20 per cent of Scotland's electricity; and free up space on the Forth rail bridge for additional passenger services between Fife and Edinburgh.

Work began on site last October and continues on schedule. Clackmannanshire Council and TIE have set themselves challenging targets for completing the railway by summer 2007 at a cost within the range of £65 million to £70 million. The range is due to mine workings and land valuation. Those targets are achievable, but they will require the project team to work together extremely effectively. I welcome the team's appetite for the challenge.

The Waverley station project is a flagship that is within Scotland's capital but is for Scotland. The station is already at full capacity during peak times, yet passenger growth is forecast to continue. I strongly welcome that growth, but capacity needs to be addressed. Our investment will add new platforms and allow more trains per hour. The trains will be on time, because punctuality will be one of the key advantages of the investment. The project improves Waverley station for passengers, including the elderly and the disabled. The project was on site in January and will be completed by December 2007, on time and within a budget of £150 million. The Waverley station project, funded from additional resources secured in the rail review, is proof that we can work effectively with Network Rail in Scotland.

Edinburgh's trams are a strategic investment in tackling congestion in Scotland's capital. The interchange at Haymarket station will be particularly important for commuters and for visitors from outside Edinburgh. I have confirmed our commitment to contribute £375 million plus inflation. I expect that to add up to a contribution of between £450 million and £500 million towards the capital cost of the tramline from Ocean Terminal to Edinburgh airport. The challenge for the promoter and construction manager is to deliver efficiencies against that budget. The gas, electricity, water and telecoms diversions that are needed for the project are expected to start this autumn, with project completion in early 2011. The City of Edinburgh Council's original target of the end of 2009 has had to be moved back as it underestimated the length of the private bill process.

Transport Scotland is working closely with Network Rail to deliver the Airdrie to Bathgate line as a real alternative to car travel on the A8 and M8 corridor. The investment will provide a public transport choice, particularly for people in North Lanarkshire and West Lothian. I am pleased to announce that we reached agreement with Network Rail earlier this week to allow work to begin on doubling the track east of Bathgate at the turn of the year. I am pleased to be bringing the project forward to the earliest possible date so that we deliver benefits to passengers as soon as we can. The project will be delivered within a budget for completion of £300 million to £375 million in outturn prices. Overall, the project is on target for delivery in 2010. That target reflects the significant scale of the project and the parliamentary timetable.

Scotland's airports need to be part of the country's rail network, so the investment in airport rail links will be good for visitors, good for business and good for Scots. They will also be good news for the airports themselves as they will improve their competitive position and provide accessible links to many destinations throughout Scotland. We attach great importance to BAA's co-operation with and contribution to that work and we are taking steps to secure that co-operation and contribution. We hope that a deal on Glasgow airport will be concluded shortly. Further discussions on Edinburgh airport will continue.

The Glasgow Airport Rail Link Bill was introduced in January and the Edinburgh airport rail link bill is due to be introduced by the promoter, TIE, today and published tomorrow. The Glasgow airport rail link is on target to cost £170 million to £210 million and the cost for the Edinburgh airport rail link will be £550 million to £650 million in outturn prices. We do not expect any real-terms cost increases on the projects. We expect Glasgow's airport rail link to be delivered by the end of 2010 and Edinburgh's by the end of 2011, but the promoters are working to deliver them up to a year earlier. I welcome and support that drive, but we need to be realistic. We expect preparatory work that does not require parliamentary approval to start early in 2007.

The Waverley railway partnership's objective, and ours, is to reconnect the Borders to the rail network. We will contribute £115 million in 2002 prices and we expect the uplift for indexation on that contribution to bring the figure up to £155 million. Work on the scheme is also expected to start early in 2007 and the rail link is expected to be delivered by the end of 2011, but the Waverley railway partnership is working to deliver it more than a year earlier.

We must set out realistic, deliverable and affordable plans to enhance Scotland's railway. We expect the whole of the rail industry—Network Rail, First ScotRail, local authorities, SPT, the new regional transport partnerships, Transport Scotland, consultants and contractors—to work together to deliver enhancements. New engagement is needed to achieve that and this is the industry's chance to show that it has changed. For too long, rail transport has been thought of as the poor cousin. That is no longer the case. Rail transport can be a driver of economic growth in Scotland; it can move people and freight across the country safely, efficiently and affordably.

I have outlined the Government's current committed major transport infrastructure programme up to 2012. The programme can be funded from within our overall budget. All the projects that I have mentioned can be delivered by 2011. That was our commitment in the infrastructure investment plan. Seventy per cent of our investment over the 10-year capital plan will be spent on public transport. So far, one railway line has been completed and two are under construction. We are already delivering.

We look further in to the future through the national transport strategy and the strategic projects review. We will consider Scotland's transport investment needs for 2012 to 2022 and beyond. There is no slowing down in our determination to look to Scotland's future. Scotland's rail investment programme is the envy of the rest of Britain. I want Scotland to be the place where people come to see how rail projects are delivered.

I look to all concerned to step up and deliver.