High Speed 2

(Limited Text - Ministerial Extracts only)

Wednesday 12th September 2018 Westminster Hall

[Dame Cheryl Gillan (Chesham and Amersham) (Con)]

It is a pleasure to serve under your chairmanship, Mr Howarth.

I welcome yet another Minister for HS2 to the Front Bench. The turnover in Secretaries of State and junior Ministers responsible for this project at the Department for Transport has been regular, to say the least. I also congratulate my hon. Friend the Member for Stone (Sir William Cash) because he made many of the points that I wanted to make. I will try not to repeat some of them, although some inevitably bear repeating.

Back in 2009, when Andrew Adonis and the Labour party announced the project, I told him that not only was it going to damage my constituency, but that it was an unpopular and costly proposition, and would perhaps not benefit the country as a whole—it will certainly be paid for by the many and be used only by the few. Unfortunately, the incoming Government, of which I was a part—I tried hard to persuade my colleagues in Cabinet to drop the project—went for it. Today, we find ourselves in a situation in which not a single inch of track has been laid, but billions of pounds have already been spent.

To follow up on the point made by the hon. Member for Blackley and Broughton (Graham Stringer)—we first came into contact when I fought the Manchester Central European seat many moons ago—I am very lucky to have persuaded my colleagues to invest in tunnelling. That was not only for my constituents, but for the country as a whole, because this dreadful project is going through an environmentally sensitive area—an area of outstanding natural beauty. There is merit in looking at making the area a national park, although that may not be successful. Such a rare piece of our land, with fragile chalk streams, really deserves that protection. It is a shame that such protection does not cover the whole of the AONB but stops prematurely at the end of my constituency.

For me, this project has been one of poor management, poor corporate governance and failures in communication right along the way. Let me refer to a couple of constituency cases; in fact, I have a letter that I will hand to the Minister at the end, addressed to the Secretary of State, about yet another failure regarding a constituent. The issue is communication; as far as I am concerned, HS2 has not learned any lessons about communication with communities.

My constituent is troubled by the closure of Shire Lane, the partial closure of Roberts Lane and the completion date for the construction of the link road. Since last November, she has been given a range of dates, ranging from January this year to April and May, and now to September or even July next year. She has continually chased answers, only to be ignored or told that someone will get back to her.

My constituent’s complaints about HS2’s engagement can be summarised in terms of sporadic communication; broken promises; incorrect information; having to chase constantly, making her feel that she is a nuisance to officials; and the trivialising of her concerns. At the same, a very glossy engagement strategy brochure, which is a spin on public relations, has been delivered to her house. Goodness knows how much that cost to produce. It seems that HS2 is continually secretive. People must not be messed about like that.

My constituent received the first letter on 20 June, which stated that HS2 required land access. It said:

“we will need to enter your land to carry out surveys or investigations during the period from 23 July 2018 to 30 September 2018.”

The second letter, dated 22 August, was exactly the same, but changed the dates from 1 October to 31 December.

On the date of completion of the link road, the communications audit trail shows that HS2 took more than a month from the last known completion date for the link road to tell residents that it had been delayed another six months. That is not good enough. I will hand the letter to the Minister to pass to the Secretary of State. I am sure the Minister will look into this matter.

I had another case earlier this year that bears repetition. It was on compensation, which everyone seems to think is so highly paid to constituents who are thrown out of their homes. I raised this issue with the Secretary of State, and he had to fix it. After HS2 had agreed the compensation, my constituent wrote:

“Despite us having a clear and agreed contract for a year, signed in January 2017, having provided all the necessary documentation from our end, and HS2 Ltd being obligated by the contract to pay the sums to us within 21 days, three months later HS2 Ltd have still not fulfilled their side of it and made the additional payment to us.”

That transaction threatened a disabled couple’s move into their newly adapted home.

I think the Minister is familiar with the case, but it bears repetition because of the contrast with the lucrative high salaries paid to officials, which my hon. Friend the Member for Stone alluded to. HS2 paid at least £100,000 in salary and perks last year to 318 officials—up from 155 in 2015-16. It spent more than £600 million on consultants—well over double the figure the previous year. This is a taxpayer-owned project, but more than 25% of staff enjoy a six-figure remuneration package, including salary, bonus and company pension contributions. Four years ago, that proportion stood at 4%, and two years ago it was less than 17%. If we add that up—particularly the extremely expensive and often very aggressive and intimidating barristers who have been used in the hybrid Bill process—the costs really outweigh what is reasonably to be expected of a taxpayer-funded project.

I will not mention Carillion or the fact that the Department has not updated the costs of the project. There are so many areas in which this project falls down. For example, for years we pushed for a property bond scheme, but in May 2018, the Department set up a High Speed 2 property price support consultation, and it will publish its decision on the consultation exercise later this year. When will that consultation be published, and what are the chances of getting the property bond that has been promoted by many people?

The whole project is starting to slip and is out of control. The phase 2b Bill has been put back and will be tabled again in 2020. The Government say that will not have a bearing on the final completion date

[The Parliamentary Under-Secretary of State for Transport (Ms Nusrat Ghani)]

indicated dissent.

[Dame Cheryl Gillan]

The Minister is shaking her head, but I would like better clarification on that issue. It is depressing not only that the legislation is being halted and is slipping but that there are setbacks in the civil works. The initial costs for the main civil engineering contracts for the first phase of HS2 are £1 billion over budget. That will lead to delays in starting the works. Seven contracts covering the work were announced last July, estimated at £6.6 billion, but I understand those have slipped by at least six or nine months.

The Minister was shaking her head, but she will know how difficult it is to extract information about the project. I have been batting on about that for a long time. This is taxpayers’ money, and the project should be transparent. I understand that it is commercial in confidence, but it is not transparent. Indeed, if hon. Members try to read the documents, they will find a large amount are redacted. Minutes from meetings often are not published on the Government website in any timely manner. That goes against HS2’s framework agreement. The minutes are often meaningless. HS2 has published board minutes up to March 2018 as far as I know, but I am not sure that that fulfils its responsibility to engender public confidence and accuracy in the information it discloses. The Minister should address that. All minutes of all meetings should be published on a timely basis. HS2 is supposed to be committed to being an open and transparent organisation, but I am afraid that is far from the truth.

When it comes to my local area, I am exceedingly worried about my local authorities. They face potential local government reorganisation—we do not have a decision yet on that. The cost and burden on my county council and district council have been quite phenomenal. Neither will get back the time, money and true cost to our local institutions, and that is not to mention our parish and town councils, which have really been burdened in this matter.

I have nothing against the Minister, as she knows. We have known each other for quite some time, and I am very proud that she is a politician. She must not take this personally, but I have called for a dedicated Minister. The champion for the Oxford-Cambridge link, my hon. Friend the Member for Milton Keynes South (Iain Stewart), has called for a dedicated Minister on that project alone, yet HS2 is much larger and there is no sign of a dedicated Minister. He is a Minister just going into Government and has called for a dedicated Minister on something that is actually smaller and less complicated than this project.

I have been so disturbed by what I have read and heard recently about the failure to extract information about this project. One might think that I would get disheartened and get HS2 opposition fatigue, but I am afraid there is no such luck. Sometimes I feel I am the only person who is trying to hold the project to account, although my colleagues are doing a sterling job.

I wrote to the Secretary of State on 17 August because I was particularly perturbed that Sir John Armitt had called for the Government to invest £43 billion more in further transportation links so that HS2 could meet even the basic business assumptions made about it. I have asked the Secretary of State to ensure that the Government carry out a full evaluation of this project—its viability and its value for money for the taxpayer. These moneys could be spent on other areas of modernising transport and communications in the UK and on other matters. As can be seen in the newspapers today, many people think that the money would be better spent on health and education, certainly in view of the technological advances in transport. The Government are still playing catch-up on 5G and on other matters.

In the interests of the country and taxpayers, I hope the Minister, the Cabinet and the Secretary of State will respond positively to the request I made, which I copied to the Prime Minister, the Chancellor and the Chief Secretary to the Treasury for their consideration. Because of the major implications of this massive expenditure, the high costs and the poor corporate governance, HS2 should be completely independently assessed. If that results in a pause while that work takes place, I will be satisfied. I hope that HS2 will hit the buffers. It is not good value for money for the taxpayer.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Transport (Ms Nusrat Ghani)]

It is a pleasure to serve under your chairmanship, Mr Howarth, and I congratulate my hon. Friend the Member for Stone (Sir William Cash) on securing the debate. The construction of HS2 phase 2a will have a significant impact on his constituents, and they have in him a tireless advocate for their interests. I hope that today I will be able to answer most of his questions, and those of all Members who have made thorough and considered contributions to the debate. If I do not, I will follow up those points in writing.

Before I respond to the specific points raised, I wish to outline why the Government are committed to HS2. Quite simply, our current train network is running at almost completely full capacity. Demand on the west coast main line has increased by 190% since 1995, and people are often left standing the whole way on long-distance journeys. We are close to being unable to add any more seats or trains, and although delays occur less frequently than in the past, we still need to overcome that challenge. HS2 will be a new train on dedicated high-speed lines, and because long-distance services will be shifted to the brand new railway, that will free up extra space for more trains to run on the most overcrowded and heavily congested routes.

HS2 direct intercity services will improve the experience of all passengers. Train operators will be able to run more varied and frequent services, including more passenger trains to locations that are not directly served by HS2. From 2033 we expect up to 48 trains to run on the network every hour, carrying more than 300,000 passengers a day—around 100 million a year. There will be greatly increased capacity, faster journey times and better connectivity between eight of our 10 largest cities. Those are the fundamental benefits of HS2, and it will make the lives of passengers easier.

However, the HS2 project is about more than transport—that point was made by many hon. Members—and we want it to turbo-charge economic growth that is shared by the entire country, allowing transport to open up new work and study opportunities and boost the prospects of millions. The key point is that increasing connectivity and capacity to and from the midlands, the north of England and London will help to rebalance the UK economy, and the benefits of that will be felt long before the railway enters the operational phase in 2026.

We are already seeing progress. Tomorrow I will be in Worksop, meeting local businesses to discuss the opportunities that arise from HS2. We know that more than 2,000 businesses have already won work on HS2, and an estimated 6,000 jobs have been supported by it. Meanwhile, 100 apprentices are already working on the project, with 2,000 expected to do so over its lifetime, many of them trained at our high-speed rail colleges in Doncaster and Birmingham. I suggest that Members drop in to visit one of those colleges, to see the opportunities being provided for those young people. HS2 provides a massive opportunity to train people in the skills that the UK needs to compete globally, and it will allow us to generate long-term employment opportunities across the UK.

Birmingham—as a Brummie, I am allowed to say this—is the heart of HS2. The Mayor of the West Midlands combined authority has said:

“HS2 will be worth billions to the West Midlands economy once complete”.

He is a strong supporter of the project. I could not be more passionate about trying to improve the economy, employment prospects and aspirations of young people from our second city. Of course, HS2 will not do that all on its own, but it will be an enabler of economic growth by connecting our great cities and towns in the midlands and the north, encouraging employers not to focus only on London and the south-east.

As I travel around the country to make the case for HS2, there is a true sense of pride and excitement about the project. I recently met the leaders of Bradford Council and Leeds City Council to discuss their plans to maximise the potential of HS2 and regenerate Leeds city centre. The leader of Leeds City Council has said:

“HS2 is an incredible opportunity to create something truly transformational to the economy of our city and the wider region.”

That is what the north is saying. Too often we just hear the voices of London and the south-east.

It is that sense of enthusiasm about HS2 and its potential that we want to encourage. That is why the Government are also working hard to ensure that HS2 integrates with the emerging ambition for Northern Powerhouse Rail and transport improvements in the west midlands. We have been in close contact with local authorities on the route developing growth strategies that will ensure that the benefits of HS2 are fully realised in local areas. That work is critical to the long-term impact that HS2 will have on regeneration and connectivity between our great cities.

We are making progress with the construction of HS2 and remain on track to deliver the plans. Work is starting on phase 1, which will link London and Birmingham by 2026, and we are legislating for phase 2a, which will connect Birmingham and Crewe from 2027.

[Sir William Cash]

There is a real problem—a potential scandal—about the issue of where the spoil will go. Is it going to be used properly? Can it be used? The other thing that I will write to the Minister about—I hope she will send me a reply—is to do with boreholes in the Whitmore and Baldwin’s Gate area. I have some serious questions about the viability of the proposed tunnel work.

[Ms Ghani]

I know that my hon. Friend has raised that matter a number of times, including with the Select Committee. It is a detailed question that requires a detailed response. I am happy to provide him with a written response. I know that he has already had a response from the Select Committee, but I am more than happy to put things down on paper.

Phase 2a will connect Birmingham and Crewe from 2027, which is many years earlier than expected. Phase 2 will run from the west midlands to Manchester in the west and Leeds in the east, completing the network by 2033. We are committed to delivering to those timescales. Of course I am deeply aware that the project, despite its huge benefits, will have a significant impact on many people during construction.

[Dame Cheryl Gillan]

I am grateful to the Minister for giving way, particularly as she is reading out some of the PR speech that I have heard before from Ministers about how marvellous HS2 is. Has she carried out an economic impact assessment on my constituency of Chesham and Amersham? Can she tell me exactly how we will benefit or what damage will be done to the economy? Can she give me detailed figures to show how HS2 benefits my constituency?

--- Later in debate ---

[Ms Ghani]

I know that my right hon. Friend has been a strong champion of her constituency and has undertaken a forensic investigation into HS2. There will be broader benefits, not only to her constituents but to people living around HS2, and that will create a number of opportunities. I will respond to some of the points that she raises in a moment, as I get through my speech.

My right hon. Friend talked about the impact on her constituents. I agree that previously HS2 did not deal with enough efficiency or compassion with the issues raised by constituents. We must continue to work with MPs and constituents affected, and we must work with affected landowners, businesses and residents to ensure that they are suitably compensated. We must make addressing their concerns a priority wherever we can.

I will now address the finer points made by Members. My hon. Friend the Member for Stone, as well as making a number of points about HS2, delved into the far more important topic of potholes, which his constituents have raised with him. In case he was worried about numbers, I can assure him that £6 billion is being invested in repairing potholes to help improve the condition of our local highways. Funding includes a record £296 million for the pothole action fund, which is enough to fix around 6 million potholes. In case there are any concerns, there is funding available.

My hon. Friend the Member for Stone made a number of points about costs and spending relating to HS2. I confirm that the 2015 spending review envelope of £55.7 billion for HS2, in 2015 prices, still stands, of which £27.18 billion has been set for phase 1 and £28.55 billion for phase 2. He also mentioned the route from Euston to Old Oak Common. HS2’s strategic objectives are to deliver connectivity between London and our cities in the north and the midlands. Old Oak Common will offer connectivity to Crossrail, on the great western main line, dispensing passengers east and west into London. I think that adequately covers the issue of costs.

My hon. Friend the Member for Stone also mentioned the environment. There is no denying that HS2 will have an impact on the environment as it is laid. We want HS2 to be more environmentally responsible than any other major infrastructure project in the history of the UK. We are aware of the potential detrimental impacts it could have on the environment and we will do what we can to mitigate them, as well as creating a new green corridor incorporating 9 sq km of new native woodland, alongside tailor-made habitats for species, including 7 million new trees and shrubs for phase 1 alone.

My hon. Friend the Member for Stone also raised the issue of maladministration. HS2 Ltd has moved on positively from the point that he raised. HS2 does not always get it right, but I hope that he will agree that the level of engagement has improved, both locally, with local community engagement officers, and here in Westminster, with drop-in meetings for Members.

I am grateful to the hon. Member for Blackley and Broughton (Graham Stringer) for the work that he does with the Transport Committee. I point out that the Committee’s last three reports stated clearly the case for HS2. To be clear, the phase 2b Bill will be in Parliament long before Crossrail 2. The timetable for the phase 2b Bill will be announced shortly. That will help to unlock Northern Powerhouse Rail and it will be debated before Crossrail 2.

I will respond to all the points made by my right hon. Friend the Member for Chesham and Amersham (Dame Cheryl Gillan) about her casework and I am more than happy to take her notes away. I fully understand how stressful it must be for constituents who are having to deal with HS2, if their issues are not dealt with swiftly and appropriately. I can only apologise if those cases have not been dealt with efficiently. I will do my best to ensure that each constituent’s case is dealt with as swiftly as it can be, and I am more than happy to take that work away.

My right hon. Friend also raised the issue of a national park—she has spoken to me about this previously—and I have raised it with the Department for Environment, Food and Rural Affairs. I would encourage her to do so as well, and I hope to continue to work with her on that. Her constituency has already received more than £26,000 from HS2 to help her neighbourhood to be as green as possible.

My right hon. Friend also raised the matter of the property bond. We ran a technical consultation about that this year and we are now examining responses. We will take a position on the outcome and there will be an announcement later in 2018.

I am a little nervous that I am running out of time, so I will quickly conclude. If I have been unable to respond to everyone’s questions, I will write to them.

I want to ensure that we fully understand the strategic case for HS2. It will not only increase capacity and improve connectivity, but create jobs and regeneration in the UK. For far too long investment and prosperity have been focused on London and the south-east. HS2 will completely change that, benefiting communities up and down the line, but mostly in the north. Moreover, our 2017 manifesto makes a clear commitment to strategic national investment, including HS2. The vote on the phase 1 Bill in the House of Commons was 399 to 42 in favour, and in the House of Lords the figures were 386 to 26.