High Speed 2

(Limited Text - Ministerial Extracts only)

Tuesday 14th January 2014 Westminster Hall

[Sheila Gilmore]

There is no doubt about current centralisation and the pull factors. Some opponents of HS2 say that it would increase centralisation in London, but I argue the opposite. The pull factors towards the south-east exist despite the disadvantages of London—high property prices, lack of land for development, long travel times to work from not far away, and so on. I am seriously worried that we are seeing more of that than we have for some time. As the population is pulled in that direction, it increases even more as people who move to work in the financial services sector and other sectors require other public and private services to support them, so London’s population becomes more and more dense. If we genuinely want to decentralise our economy, we must think about that seriously.

Birmingham, Leeds, Manchester and Scotland have competitive advantages over London in terms of population, availability of land to develop, relatively cheap housing and a lower cost of living. The service sectors that are already in many of those places and are powerful there would benefit from better access and could grow and develop to the advantage of all of us in the UK.

[The Parliamentary Under-Secretary of State for Transport (Mr Robert Goodwill)]

Does the hon. Lady agree that the Labour leaders of our great northern cities cannot all be wrong in that regard?

[Sheila Gilmore]

I certainly agree that their views should be listened to and that they have their cities’ best interests at heart. They want them to develop and widen. Of course there will be an environmental impact and I understand people’s concern about that. It is never easy to develop such projects. It would be foolish to say that there will be no disruption or environmental damage, but on balance the country must weigh up the benefits. We must accept, as we have done and will continue to do, that enabling the country to develop as we want and in a much more balanced way means that we must take that on board, while always trying to mitigate the environmental problems.

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[Mrs Gillan]

There is an answer to the question. We could easily be wrong on some points, but that is not to say that HS2 is not totally wrong. Besides, they have been set off in a certain—

[Mr Goodwill]

rose—

[Mrs Gillan]

I will give way to my hon. Friend the Minister in a minute.

[Mrs Gillan]

I give way to the Minister of course.

[Mr Goodwill]

I understand that my right hon. Friend is entitled to her own opinions, but I do not accept that she is entitled to her own facts.

[Mrs Gillan]

Perhaps the Minister will intervene and give me the facts that I should have. Would the Minister like me to give way? How are my facts wrong?

[Mr Goodwill]

There will be plenty of facts when I make my concluding remarks.

[Mrs Gillan]

I will be grateful for a reply from the Minister then, of course. He knows that what I am doing is talking common sense and repeating what has happened, as opposed to making anything up. If this project is so good, perhaps the Minister will also, when he replies, let us know why the Government have still not published the Major Projects Authority reports, which highlight the risk. I believe that they have been classified as amber and red. If the Government are so convinced that this is such a wonderful project, it is important that those reports are made public. After all, we came into government saying that we would be the most transparent Government ever.

The hybrid Bill, which has been deposited, has also proved to be contentious. I think that tomorrow the Standing Orders Committee will meet for the first time since 2008 to examine the 14 Standing Orders that it may have transgressed. Alongside the hybrid Bill was deposited an environmental statement of nearly 50,000 pages, from which, as the Minister told me in answer to a question, some 877 pages were omitted. That and the fact that 56 days is the shortest period that has been given for any consultation on HS2 matters reflect the fact that the Government are not wanting to listen in detail to people who are raising valid and very worrying concerns about where we are going with this project.

It is widely known that Buckinghamshire gets all the pain and none of the gain. I am not sure whether the new college that is being promoted by my colleagues in government will be dangled in front of Buckinghamshire —whether it could come to Buckinghamshire. If that were considered, at least it would be something more than we are getting at the moment, because if people start to look in detail at what is proposed and the impact on Buckinghamshire, they will see that it is very worrying.

I talked to my right hon. Friend the Member for Aylesbury (Mr Lidington) before this debate. We were talking about the effects on the local economy and particularly on tourism in Wendover and beyond, and also in Great Missenden in my constituency. But also, more worryingly—my right hon. Friend the Member for Chelmsford, who is also a former Health Minister, will know about this—concern has been expressed, because of what is proposed in changing the transport architecture locally, that even blue-light services could be affected during the construction phase of the project.

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[The Parliamentary Under-Secretary of State for Transport (Mr Robert Goodwill)]

As ever, it is a joy to serve under your chairmanship, Sir Edward. I thank the hon. Member for Edinburgh East (Sheila Gilmore) for securing this morning’s debate and everyone else for their most useful contributions. I will try to address some of the large number of questions asked.

To respond to the speech of my right hon. Friend the Member for Chesham and Amersham (Mrs Gillan), we are well aware that there are real concerns about not only the environment, but people’s property and businesses, in the areas through which the line will be driven. We have done as much as is reasonably possible to avoid or reduce environmental impacts. We will, for example, provide more than 150 miles of tunnels and cuttings, make extensive use of sound barriers and plant a total of 4 million trees along the line of route. In my right hon. Friend’s constituency, 77% of the line will be tunnelled and the rest will be in a cutting, which is a great achievement that she has managed to secure for her constituents, who will understand how she campaigned to secure it.

[Mrs Gillan]

I am grateful for the Minister’s kind acknowledgement of the work that I and others have put in. Will he assure me that he will not rule out at this stage looking at mole tunnelling further to protect the area of outstanding natural beauty, which environmental organisations in my constituency have forcefully proposed?

[Mr Goodwill]

The hybrid Bill process, which we hope to commence this year, will provide an opportunity for those who want to make representations. As I say, however, 77% of the line in my right hon. Friend’s constituency will already be in a tunnel.

My right hon. Friend also referred to the KPMG report. HS2 will of course not serve all areas of the UK, which is reflected in the figures, and the benefits will naturally be greater in the places directly served by the line. Of course, the analysis does not include the benefits of other investments to boost the transport system. Indeed, the Government will invest £73 billion in the next Parliament, of which only £17 billion will be spent on HS2 and which will help the places not being served by HS2, particularly those in the north of England.

[Lilian Greenwood]

Does the Minister accept the Select Committee on Transport’s recommendation that the Department, HS2 Ltd and Network Rail work together on identifying potential high-speed Britain projects that might be included in the next control period for transport spending?

[Mr Goodwill]

It is vital that other investment happens in both rail and road infrastructure and that account is taken of how that will dovetail with High Speed 2. HS2 will also free up capacity on the existing classic network to allow services to places such as Blackpool or Shrewsbury and, most importantly, for more freight, which many people have missed. Moving freight off the roads and on to rail will free up capacity on our roads.

The hon. Member for Nottingham South (Lilian Greenwood) mentioned apprenticeships. It is envisaged that HS2 will create up to 2,000 apprenticeships during its construction. I was pleased to be with Sir David Higgins and other Ministers at Old Oak Common this morning, when the further education college that will focus on the skills necessary for HS2 was announced. Several locations have been proposed, and I will take on board the suggestion made by the hon. Member for Edinburgh North and Leith (Mark Lazarowicz).

I believe passionately in a successful Britain and in a country that can compete and thrive in the global economy. To achieve that, we need infrastructure that is fit for the 21st century and beyond. Nowhere is that truer than in the context of transport, which is a key enabler of economic growth. Good transport equals good economic conditions. An important way to support British business, to power up the recovery and to put people back in work is to invest in and modernise our transport networks. Growth and prosperity are created by businesses and people having ideas, taking risks, innovating, working hard and creating jobs. A balanced and successful economy requires modern and efficient infrastructure. The Government’s role is to help create the conditions for success by fostering the security, skills and infrastructure that support our economy. By delivering additional capacity and enhanced connectivity, transport infrastructure allows businesses to grow and work together and to access a wide range of customers, suppliers and skilled labour. Business investment is encouraged by the quality of transport links, influencing the decisions of international companies on where to locate and, in turn, increasing investment in the UK.

Transport infrastructure has particular economic significance for UK cities. In 2009, London and the core cities of Birmingham, Bristol, Leeds, Liverpool, Manchester, Newcastle, Nottingham and Sheffield, together with their wider urban areas, contributed almost 50% of UK GDP. The core cities deliver 27% of the UK’s GDP and need to be better connected to thrive and achieve higher levels of growth if they are to close the performance gap between the south-east and the rest of the country—the so-called north-south divide.

Major infrastructure investments like HS2 stand apart from many other decisions made by the public and private sector. They affect the lives of generations of citizens and last centuries, not decades, which makes it important that we make the right decision. In proposing HS2, the Government are firmly convinced that we are investing in a solution that is right for the future economic development of the country, and I am pleased that we have such widespread cross-party support.

HS2 is a transformational project that will enhance rail capacity, connectivity and reliability, helping to underpin economic growth. It will provide the spine for a truly national network, connecting seamlessly to the existing rail network, serving destinations not directly on the high-speed line, releasing capacity on the existing main north-south lines to enable additional commuter, regional or freight services to use the line and freeing up more space on existing trains. It will provide a step change in the capacity of the rail network to accommodate the growing demand for long-distance travel. Our transport system is already under strain, as we have heard today, and will only get worse as demand continues to grow. Alongside the £73 billion that the Government will invest in all forms of transport by 2021, HS2 will help us get ahead of current demand on our core transport network.

HS2 will slash journey times for passengers between our key cities and regions: London to Birmingham will take just 49 minutes, London to Manchester just 1 hour 8 minutes, and London to Leeds just 1 hour 23 minutes. The hon. Member for Edinburgh East knows the current journey times between Edinburgh and London all too well. Scotland will benefit from high-speed services from the moment that HS2 opens. The Y network allows for the seamless transition of trains on to the east and west coast main lines and is expected to slash the journey times between Edinburgh and Glasgow to London by up to an hour, which will benefit the Scottish economy by some £3 billion.

Scotland is an important part of the United Kingdom, and we must not be swayed by those who propose dangerous alternatives. In November last year, the Secretary of State for Transport announced further work into rail capacity and connectivity in Scotland and between Scotland and England. The study’s objective is to identify the broad options available and to provide the evidence base for any future decisions. Work is ongoing and a draft report will be ready in time for the summer recess.

We have taken steps to ensure that the economic opportunities presented by a scheme as transformational as HS2 are fully exploited. The HS2 growth taskforce, ably led by Lord Deighton, has a relentless focus on maximising the economic growth potential of HS2. Lord Deighton was also at Old Oak Common today to see the potential in that part of London. HS2 will be the biggest infrastructure project in Europe and will have a significant direct impact on local jobs, particularly in engineering and construction. Independent research predicts that HS2 is capable of directly generating up to 22,000 jobs in the next five years, rising to a maximum of 50,000 jobs by the late 2020s. In addition, HS2 will support over 100,000 jobs. Phase 1 will create 40,000 jobs in the midlands and London and phase 2 will create at least 60,000 jobs in the midlands and the north. We recognise that the benefits will not just fall into our lap, and the role of the growth taskforce is to identify the work that must be done in advance to ensure that we capture the full potential of this investment for the UK.

In conclusion, HS2, coupled with the record investments we are making in existing transport, is the right solution to the transport challenges that we face. It is about a step change in capacity and connectivity for passengers. It is about unlocking the potential of our major cities and regions, supporting jobs and driving growth. It is about building a dynamic society, a thriving economy and a successful Britain. HS2 is not just a viable proposition for a new railway; it is so much more than a piece of transport infrastructure.