The Parliamentary Under-Secretary of State for Transport (Norman Baker)
I congratulate the right hon. Member for Birmingham, Hodge Hill (Mr Byrne) on securing this debate on the location of HS2’s rolling stock maintenance depot. He has talked passionately about how important the area is for jobs and regeneration—quite rightly—and I hope he will agree that we all have those interests at heart.
Before I go into the specific issues of the proposed use of the site for HS2 and what is being done to help business currently located there, I would first like to say just how important the Government believes HS2 is for the country. We believe it is a crucial part of our plans to develop the right infrastructure for future economic growth, and I personally welcome the cross-party support that exists in this House for high-speed rail, and I welcome the right hon. Gentleman’s comments in support of it. Shortly, my right hon. Friend the Secretary of State for Transport will announce details of the route for phase 2 of HS2—the legs to Leeds and Manchester. Our plans put Birmingham and the west midlands at the very heart of Britain’s new high-speed rail network, and in my view they will change the geography of the country in Birmingham’s favour. The right hon. Gentleman will agree that this is a fantastic opportunity for everyone in the area.
The new terminus station at Curzon street, the interchange station near Birmingham airport and the west coast main line will put Birmingham and Solihull at the centre of the country’s transport infrastructure, creating huge opportunities for growth in the area. The Curzon street station will be a catalyst for the development of the Eastside area of the city, and offer real regeneration potential for the Digbeth area. The interchange station will act as the nexus for the economic development plans of local authorities and the area’s local enterprise partnership. More widely, HS2 will bring construction jobs, operational jobs when the line is open, and support wider jobs and wealth creation, improving the prospects for businesses and people right across the west midlands.
HS2 could help to support growth in employment with more than 8,000 jobs in the regeneration and development areas around Birmingham stations. Centro estimates that figure to be closer to 10,000 jobs with as many as 22,000 created in the wider region once phase 2 is completed, with economic output increasing by £1.5 billion.
As the right hon. Gentleman knows, HS2 Ltd has identified Washwood Heath as a key site for the development of the high-speed rail network. It is situated approximately two miles from Birmingham Curzon Street. The intention is that once phase 1 of HS2 is completed, Washwood Heath will accommodate the rolling stock maintenance depot to serve the London to west midlands route. That role will be expanded when phase 2 opens to provide the maintenance services for the extended network. To that extent we will need to consider the land required at Washwood Heath for both phase 1 and 2 requirements to ensure that the construction of the railway and depot can be facilitated.
The Washwood Heath rolling stock maintenance depot will create 400 jobs during construction and support a further 300 operational jobs when phase 1 opens, with a potential 400 additional skilled jobs when phase 2 is completed. There is also the potential to locate the HS2 control centre at Washwood Heath, generating a further 100 jobs.
I think I should say something about how Washwood Heath was chosen and why we are where we are now. I know there has been a desire from some for the selection of the Washwood Heath site to be looked at again, so let me dwell on that for a second. HS2 Ltd undertook an assessment to identify a credible location for a rolling stock maintenance depot that could be progressed as part of an overall HS2 London to west midlands phase 1 proposition. The fleet using the depot, and ultimately the depot’s functional requirements, informed much of the site selection process. Additionally, the key factors influencing the site selection process included location, size, access to the HS2 network and sustainability.
The initial assessment concluded that a west midlands location was more appropriate than a site in the London area. From that assessment, a longlist of six potential sites in the west midlands area was identified and evaluated. That resulted in the identification of a shortlist of the Washwood Heath, Middleton and Coleshill sites. Those locations underwent further evaluation to enable a preferred option—Washwood Heath—to be identified as the most suitable rolling stock depot location. The key reasons for Washwood Heath’s selection as a preferred option include the fact that it is close to the Curzon Street terminus station, that it is situated off the main HS2 line of route, and that the site is centrally placed within the future national high speed network. That process is documented in HS2 Ltd’s “Rolling Stock Maintenance Depot Selection”, which was prepared in September 2010. In developing a longlist of options, HS2 Ltd worked closely with Birmingham city council officers, who agreed with the site selection process.
Mr Byrne
The Minister is characteristically generous in giving way, but it is simply inconceivable that he could say that Birmingham city council officers agree with the site selection. I have worked with so many of them for so long, and they are very clear about the economic catastrophe that the chosen site would represent. I hope that, when we conclude the debate over the next month or two, there is a note of consensus, but I must tell the Minister that, if the legislation is not on the books by 2015 and Labour forms the next Government, we will look at the decision again.
Norman Baker
On Birmingham city council officers, the right hon. Gentleman will know from his time in ministerial office that Ministers discuss matters in some detail with officials so that they are properly prepared for Adjournment debates. I raised that specific point and was given an assurance that Birmingham city council officers had indeed responded in that way. That is why I included it in my comments. He questions the robustness of the process, but I am satisfied that there has been a thorough examination.
Would Birmingham benefit more from other use of the land? The right hon. Gentleman made the case that it would, and HS2 Ltd recognises his concerns and those of the landowners at Washwood Heath which have emerged since the selection process I have described. HS2 Ltd is currently looking in detail at their concerns and the alternative sites they have proposed for the rolling stock maintenance depot, and will report to the Department for Transport in February, when Ministers will consider them. I hope that gives him comfort that the matter is being considered at the highest level by Ministers.
Given where we are in the process and the need to progress the scheme, I expect the Secretary of State to wait to receive the outcomes of HS2 Ltd’s examination to understand the most appropriate mechanism formally to address the concerns of the landowners and Birmingham city council. However, I should like to make two further points. First, the site in question has remained largely as it is for many years, including through the last economic boom, and it is not immediately clear—or at least the Government are not persuaded—how realistic the development proposals are. Secondly, the proposals for the rolling stock maintenance depot would bring employment directly associated with building and operating the railway, create opportunities for supporting employment uses, and make valuable use of the site, which, I might add, has an historic association with the railway.
The right hon. Gentleman spoke of the impacts on businesses based on the Washwood Heath site. UKMail has a particularly large presence there, and I assure him of the Government’s commitment to work with the company to ensure that the business can either continue to operate there or move to another location. HS2 Ltd has had regular and constructive conversations with it and I expect them to continue.
Some people have said that HS2 Ltd is proposing to safeguard too much land. HS2 Ltd needs to safeguard a larger area of land initially to ensure that the land is kept available for the depot and that HS2 Ltd can be notified of any future proposals that might compromise our ability to build and operate the facility. That does not mean that all the land will be taken by HS2, but we need to ensure that conflicts do not arise.
Draft safeguarding consultation began in October 2012 and is due to close on 31 January. As the engineering design for the depot and railway develops, HS2 Ltd will continue to meet Birmingham city council officers to share emerging designs and to discuss the potential of developing a planning framework for the area, enabling additional employment uses to exist alongside the depot, and providing certainty for landowners and developers on the extent of future land availability and use.
I am aware that Birmingham city council recently consulted on options for the future growth of the city, and in particular identified the need to expand into the green belt, to which the right hon. Gentleman referred, to accommodate future employment growth. There was a recognised need to do that, even without the rolling stock maintenance depot located at Washwood Heath, so he has made his point about how far he thinks that ingression needs to go.
In addition to supporting the preparation of a planning framework, HS2 Ltd will continue to work with the city council to ensure that the proposed rolling stock maintenance depot maximises the opportunities created by locating the hub of the national high-speed network at Washwood Heath, both in terms of employment opportunities created by the construction and operation of the railway, and in attracting investment and new jobs to this area of Birmingham.
The Government and HS2 Ltd are working hard to implement a scheme that will not only bring the widest possible benefits to the country, but help all those who would be impacted. HS2 Ltd is already engaged with UKMail and other interested parties concerning the future of the Washwood Heath site. It is HS2 Ltd’s intention to work with Birmingham city council and key landowners to share emerging design solutions, and to prepare a planning framework for the site, enabling the rolling stock maintenance depot to co-exist with additional employment uses. We should not forget the direct job creation this opportunity will bring: approximately 300 operational jobs with phase 1 and approximately 700 with phase 2. The site offers opportunities for more jobs, local training opportunities and the attraction of wider rail industries, as the site becomes a hub of high-speed rail activities in the region, and therefore one of national importance. The Government and HS2 Ltd will continue to support these aspirations for HS2 and continue to do what we can to support the economy of Birmingham and the west midlands.
The right hon. Member for Holborn and St Pancras (Frank Dobson) raised an issue about consultation—a meeting from last night of which I obviously have no knowledge. All I would say is that it is the Government’s intention to ensure that there is proper compensation, and that has not changed since the statement made by the previous Secretary of State for Transport, the right hon. Member for Runnymede and Weybridge (Mr Hammond).
Frank Dobson
Will the Minister try to ensure that officials from HS2 Ltd and the Department for Transport are made aware of ministerial desires and intentions, because they were denying them outright last night?
Norman Baker
As I say, I was not at the meeting and I would be surprised if that was indeed the case. I have restated the position to the House that we believe in proper compensation for people affected by HS2.
Mr Byrne
The Minister is generous in giving way a second time. The argument that has been rehearsed this afternoon is an argument that has been rehearsed by HS2 in the past year and a half, and it has been systematically taken apart. There will be no comfort in the notion of 300 or 400 jobs being created some time in the 2020s when 7,500 jobs could be created in the next few years. The idea that history is any guide to what could be done now is, I am afraid, almost completely irrelevant. A site of this size and scale has not been put together for more than a century. This is a completely new opportunity. Borne of the worry about grip on detail, I hope the Minister can give a commitment that either he or the Secretary of State will come to Birmingham and discuss with the leader of the city council, me and Birmingham city council officers the whys and wherefores and the logic of the case we are making this afternoon, before they come to a final conclusion in February?
Norman Baker
I will certainly pass on the right hon. Gentleman’s request to the Secretary of State and make him aware of the exchange we have had this afternoon.
In conclusion, the Secretary of State wants to reach the best conclusion for the country and the transport system, and for those who will benefit from HS2 in terms of jobs and employment, particularly in Birmingham and the west midlands, and in Manchester and Leeds. He will make a statement in due course about further plans for HS2, and the right hon. Gentleman will have the opportunity to raise the matter directly with him at that point.
This has been a useful exchange. I am grateful to the right hon. Gentleman for the way he has put his case, with the usual aplomb and forcefulness that I expect from him. His points have been noted, and I am also grateful to the right hon. Member for Holborn and St Pancras for his contribution.
Question put and agreed to.