High Speed Rail (West Midlands-Crewe) Bill

(Limited Text - Ministerial Extracts only)

Committee stage & Committee: 2nd sitting (Hansard) & Committee: 2nd sitting (Hansard): House of Lords & Committee: 2nd sitting : House of Lords & Committee: 2nd sitting
Thursday 12th November 2020 Grand Committee

[Lord Rosser (Lab) [V]]

My noble friend Lord Berkeley has spoken about the purpose of his amendment, calling for an independent peer review of the section of the HS2 project covered by the Bill; namely, the connection to phase 1 at Fradley in the West Midlands and to the west coast main line just outside Crewe in Cheshire.

The most recent review—and it is recent—was the Oakervee review, which started off with my noble friend Lord Berkeley playing a prominent role, which then appeared to be downgraded as time went on, until at the end he seemed to be treated as a somewhat peripheral figure. Presumably this was not unrelated to my noble friend’s views about the review and its conclusions.

My Amendment 8 requires the Secretary of State to publish a cost-benefit analysis of HS2 within three months of the Bill becoming an Act, and then to

“publish a revised assessment in each subsequent twelve month period.”

I imagine that the Minister will oppose that but, if so, I hope she will be able to tell me that that is because this will be covered in the new six-monthly reports to Parliament. Obviously, I await her response.

However, I want to raise some points about costs. Are the committed costs for phase 1 now some £10 billion, with that figure being about a quarter of the Government’s estimated total cost of phase 1? If that is an accurate or reasonably accurate figure, would the Government expect committed costs to have already reached some 25% of the total cost of the phase before the permanent works have really got under way? What is the Government’s estimated cost of phase 2a and how much has already been spent and committed? What is now the expected completion date of phase 2a? Are the Government confident that their latest cost-benefit ratio figure for HS2 could never worsen as the project continues—and, one fears, costs rise—to the point where there would be a serious question about the case for HS2? An assurance on that point would be helpful. Is it the Government’s unequivocal position that once the Bill becomes an Act, phase 2a will proceed—no ifs, no buts?

Our position is, and has always been, one of support for HS2. It was no wonder that my noble friend Lord Adonis sought unambiguous assurances on Monday, which he did not appear to get, of the Government’s continuing commitment to complete the eastern leg of HS2 in full, to plan, from Birmingham through the east Midlands to Leeds. It was a Labour Government who got this project off the ground, thanks in particular to the drive and determination shown by my noble friend. However, there needs to be a proper grip on costs once specific figures for expected costs have been announced, which also means that considerable hard evidence-backed thought needs to be given to what, realistically, those expected costs are likely to be, and the same should apply as far as the benefits are concerned.

I suspect that the Government recognise that. In a letter to me of 16 October the Minister said:

“The Government have strengthened the arrangements for governance and accountability for the HS2 project. There is now a dedicated Minister, a cross-government ministerial group and a six-monthly report to Parliament.”


Is the appointment of a dedicated Minister an admission that there has been insufficient ministerial involvement and oversight of the HS2 project and its costs by the Department for Transport for a significant part of the past 10 years? That is what it sounds like. If so, why did Ministers allow that to happen and to drag on for so long? Does the creation of a cross-governmental ministerial group mean an acceptance that there will have been no proper co-ordinated cross-government policy-making at ministerial level and oversight on HS2, including its costs, for a significant part of the past 10 years? Once again, that is what it sounds like. Again, I ask: if so, why did Ministers allow that to happen and to drag on for so long?

I would like to know why the Government think that these new arrangements will strengthen governance and accountability. In what way is governance being strengthened? What particular deficiency in the previous governance arrangements will be plugged by these new arrangements? What positive impact on the HS2 project do the Government expect to result from these new arrangements? In what way do the Government believe that accountability will be strengthened by these new arrangements? Who and what will become more accountable and to whom? What benefits do the Government expect to arise from this strengthening of accountability for the HS2 project? What will be the impact of the strengthened arrangements for governance and accountability on the costs of HS2? If it is expected to be positive—and I assume it is—why will these new arrangements involving Ministers enable costs to be better controlled than they have been under the existing arrangements?

The first of the six-monthly reports to Parliament has reported a further £800 million increase in costs over six months. Are the Government satisfied that the reasons given in the report for the increase in costs could not have been identified much earlier with more extensive preparatory work? If the Government’s answer is that they are satisfied that that is the case, that seems close to an admission that they really do not know what the final cost of HS2 will be since, presumably, further major unexpected developments or problems could continue to arise all the time. If that is the case, we can only hope that such developments and other potential issues affecting costs do not end up exceeding the contingency provision that has been made because, as we have seen and know, opponents of this project are reinvigorated every time there is an announcement of a further non-budgeted increase in costs. That is why controlling costs is important.

I hope that the Government will be able to give some clear answers to the questions I have asked and will explain why and what they believe the new arrangements referred to in the letter of 16 October will deliver in respect of strengthened governance and accountability and much better control over costs of a project we continue to support.

[The Parliamentary Under-Secretary of State, Department for Transport (Baroness Vere of Norbiton) (Con)]

My Lords, when I saw the first group for this second day in Committee I thought, “This is going to be Second Reading territory” and, lo and behold, it was the case. I thank all noble Lords for their contributions, which went slightly wide of the amendments in the group, which are essentially about reporting, not about whether or not HS2 should go ahead, although we had a little run around that track as well. I note that the last group on the Marshalled List today is about party walls, and I find that a very exciting prospect and very much hope that we will get there.

As I outlined in my previous responses about the Government’s recent changes to transparency and accountability, we are putting these at the heart of everything we are doing on HS2 because we believe that enhanced reporting measures and ministerial oversight will help. That is not to say that there was a significant deficiency previously, as was suggested by the noble Lord, Lord Rosser, but that with all these things good governance is very hard to achieve and incremental improvements to governance structures should be made when they are deemed appropriate.

On Amendment 6, about another report, I think I share the feeling of some noble Lords who have spoken: “Not another one.” There have been several reports on HS2. I believe it is now time to get on and get it built without having another report. Most recently we had the report from Doug Oakervee and his panel and the recommendations therein. The noble Lord, Lord Adonis, mentioned some of the people involved in that report, and I think we all agree that they are people of very high calibre. Indeed, they include the noble Lord, Lord Berkeley. He was on that panel and, as was and is his right, he published his own dissenting report, which of course the Government read and took note of. Is it time now to have yet another report on HS2? I believe that is not the right thing for us to do. We should be looking at the conclusions of the last report, which was written only recently, and putting them into practice. That is why we have Andrew Stephenson as the Minister for HS2 and why we have put in enhanced reporting requirements to Parliament.

The noble Lord, Lord Liddle, mentioned the HS2 board. It is already a strong board, but it has recently been enhanced by representatives from the Treasury and the Department for Transport. That is to make sure that HS2 remains absolutely focused on our priorities and the interests of the British taxpayer. We also have the integrated rail plan, of which the noble Lord, Lord Adonis, is such a fan. That plan is in development and will make recommendations on how best to deliver high-speed rail in the north.

Therefore, the Government do not agree that we need a further report or review—call it what you will— into HS2 at this time. There will be a significant amount of scrutiny to come in any event, given the existing arrangements.

On the amendment tabled by the noble Lord, Lord Rosser, as I have explained, a new reporting regime has just been put in place that commits the Government to report every six months. The first one was published last month and updated the House on costs and schedule.

I will sidetrack slightly, if I may, on the issue of costs and schedule because I am doing a lot of work around this as there are quite a lot of major projects in my portfolio. In this country, we have a slight issue that we expect to know exactly what the cost and schedule will be on day one. That is not even day one of the build. We seem to want to know what they are going to be on day one when someone has only just thought of the project. That is absolutely impossible with these sorts of large engineering projects.

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[Lord Adonis (Lab)]

Sorry: I was not quite sure who I was supposed to email under this complicated regime. I emailed someone, but clearly the wrong person.

Perhaps I could ask the Minister a question. She gave she gave a compelling response as to why we should not have a review. She was less convincing in response to my noble friend Lord Rosser about cost/benefits, because costs and benefits change over time, which was part of the point my noble friend was making. The noble Lord, Lord Framlingham, was so concerned that we should pay attention to cost/benefits; can the Minister confirm that when it comes to the next review of cost/benefits, it is very important that the costs of upgrading the three principal lines running north from London—the west coast main line, the Midlands main line and the east coast main line—will be set against the costs if HS2 does not proceed? All the estimates made of those costs are that they are huge and should not be discounted in any future cost/benefit analysis.

[Baroness Vere of Norbiton (Con)]

I thank the noble Lord for that intervention, but what he notes are the counterfactual opportunity costs of not having to do those upgrades. I am not sure how they would factor into a standard cost/benefit analysis, but it is certainly the case, as he pointed out, that they would be fairly costly and that HS2 brings not only speed but capacity.

[Lord Berkeley (Lab)]

My Lords, I am grateful to all noble Lords who have spoken to this group of amendments, and I will try to be as quick as I can, because I know we have a lot to get through today. The comments by the noble Lord, Lord Liddle, and the noble Baroness, Lady Randerson, about the need to have an effective HS2 board are absolutely right; that may well be one solution. As the Minister said, things are improving—we must see how it goes, but it is a good start.

It was interesting that my noble friends Lord Snape and Lord Adonis talked about having too many reports on railways. They are quite right but, as they both said, the Minister is undertaking one at the moment on the east side of phase 2B. That follows the Oakervee recommendation; paragraph 3.7 says that the Government should

“establish a further study to be completed by summer 2020”—

well, it is a bit late—

“to develop an integrated railway plan embracing 2B alongside an integrated railway investment programme for the Midlands and the North”.

That is a really good idea, but now to expect to have one enormous hybrid Bill covering the whole lot, as my noble friend Lord Adonis is suggesting, is not really sensible. It would be double the size of the phase 1 Bill, and that took long enough anyway.

I also respond to my noble friend Lord Snape—or perhaps it was my noble friend Lord Adonis—about the people on the Oakervee review. It is worth reminding ourselves that we had only two months to do this, and the terms of reference were slightly unusual for such a study and did not include anything about the environment —we added something, probably at my suggestion. That was one reason for suggesting that another review, done independently, might be a good idea to cover those matters. I will not go into the likely or actual opinions of the members of the review panel, because, as a result of their diaries, they were unable to spend a great deal of time on it, although they contributed a lot. Anyway, we are where we are, and the Oakervee review got published. There is always an issue with independence. A couple of people who I suggested should join or provide evidence to the review said, “If we do that, we might get blacklisted by the Department for Transport for future studies”. I will not name names, but that was a fear that people had.

It is all over now, and we have had a good discussion. Of course, I will not press the amendment and I look forward to continuing discussion on reports and information, cost/benefits and the environment. I beg leave to withdraw the amendment.

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This is a very murky and secretive area of NDAs. I share the view expressed that there are circumstances when they are needed and are fully justified—I am sure there are—but when one sees the number in relation to HS2, one is entitled to ask whether they have not got a bit out of hand and are being used in instances for which NDAs were not originally envisaged. Are they perhaps being used for the interests of the parties concerned, and have we forgotten that, where there is any doubt, transparency and the public interest should take priority, which is surely what good governance is in part about and which the Minister has said in earlier debates is what the Government want to strengthen in relation to this project?

[Baroness Vere of Norbiton (Con)]

My Lords, non-disclosure agreements, or NDAs, are entered into voluntarily with the consent of both parties. In the case of the HS2 programme, NDAs are used for good reason and in the public interest. For example, NDAs may allow HS2 to have open and frank conversations with stakeholders, including local authorities and businesses, on a range of plans and proposals—these are not firm schemes but plans and proposals; they are things that may come to pass or may not. By doing so, it has better access to the information it needs to inform the proposals then put forward. If all possible developments are public at all times, the alarm and concern created in local communities would be simply extraordinary.

NDAs provide huge value to the taxpayer and local communities by reducing generalised blight that would happen otherwise. HS2 entered into agreements with local authorities as part of the very early stages of exploring the different route options. This protected swathes of the country from suggestions of new infrastructure. What would have happened had those suggestions come out? Property values would have plummeted, yet most of those suggestions were just that—suggestions—and they would never have come to fruition.

The private nature of such conversations is helpful. It reduces worry and uncertainty for those affected by the scheme. The use of NDAs also protects the public’s private and personal data. Sometimes, it is necessary to share information between organisations. For example, there might be concerns about somebody’s welfare. HS2 has a duty of care but also needs to share such data in compliance with the law. NDAs allow this to happen. Protecting personally sensitive and project-related data in this way allows the project to avoid affecting property values unduly and to protect individuals’ rights. I am confident that the use of NDAs by HS2 is in the public interest. It is not a way to avoid transparency; it is a way to ensure that HS2 is able fully to scope the costs of the various proposals in a confidential manner and to ensure that whatever proposals are eventually put on the table are those most likely to succeed, while minimising the alarm caused in areas which, frankly, do not need to be alarmed because they were not in the end chosen.

The need for an independent assessor to testify to the public interest has been discussed extensively and considered by the Secretary of State for Transport during the passage of this Bill, including whether it might be pertinent to appoint further observers or implement a new complaints procedure. The conclusion has been that it is right that those who wish to do so should have the opportunity—they do not have to do it—to enter into an NDA with HS2 Ltd. In this sense, people who are affected by the scheme should be allowed to protect themselves and their private conversations with HS2 without concerns that their data will be shared with a third party. Just because these private agreements are just that, private, does not make them invalid or an illegitimate form of protection for the parties—it does not make them shady, as has been the impression I have been given by the speeches of some noble Lords. They are voluntary agreements that can be entered into for various reasons.

If an independent assessor were appointed to scrutinise such agreements, they would be breaching the privacy of those agreements. The appointment of an assessor would effectively prevent the sharing of information on a confidential basis. This would cause delay, which noble Lords tend not to like. It would increase uncertainty —again, a bad thing—and costs for those affected by the project and the cost of the project itself, which is ultimately paid for by the taxpayer.

I want briefly to mention that there are established complaints procedures for members of the public who wish to have their concerns considered through independent scrutiny. As noble Lords are aware from day 1 of Committee, there is Sir Mark Worthington, the independent construction complaints commissioner. There is also the residents’ commissioner, Deborah Fazan, who is in place to hold HS2 to account for the commitments in the residents’ charter. She produces periodic reports on HS2 performance against those commitments. Within HS2, there is an established whistleblowing hotline, called Speak Out. Speak Out provides a route for staff, contractors and members of the public to raise concerns about any potential misuse of taxpayers’ funds.

The noble Baroness, Lady Kramer, mentioned that she would like a meeting. I would very much appreciate a meeting with her, although I might perhaps offer my colleague, Minister Stephenson, as the HS2 Minister. He would be better able to hear her concerns, because we need to get below the whole “Ooh, it’s a bit shady; 342—isn’t that too many?” I do not know: is it too many or is it too few? The whole point is: are the non-disclosure agreements the right ones, and are they reached voluntarily and for the right reasons?

I would like the noble Baroness, Lady Kramer, perhaps to have a meeting with my colleague, the HS2 Minister, to talk through some of the evidence and some of the things that may have happened in the past, which we have been able to remove, because of the steps that have been taken, and to discuss any ideas that she has for steps that we can take in future to ensure the requisite level of transparency—but also to protect the taxpayer and ensure that confidential conversations can take place when appropriate.

On the basis of my intervention, I hope that the noble Lord feels able to withdraw his amendment.

[The Deputy Chairman of Committees (Baroness Watkins of Tavistock) (CB)]

I have received requests to speak after the Minister from the noble Lord, Lord Adonis, and the noble Baroness, Lady Kramer.

[Lord Adonis (Lab)]

The Minister’s response has been compelling. She is right to point up the importance of HS2 Ltd being able to discuss with local authorities confidentially different route options, treatment of works, and so on. That is completely correct. Of course, if that was not possible, HS2 probably would not be able to have some of those conversations, because the issues raised would be too sensitive. Therefore, I do not think that the case for this amendment has been made even in principle.

I note that the noble Baroness, Lady Kramer, is going to come in after me. If she is going to try to persuade the Committee that there should be some more different and onerous process for HS2 Ltd in respect of non-disclosure agreements, she will have to be franker with the Committee about that. I do not think that we should have general statements made that would lead to substantive changes in a non-disclosure agreement that could impede the work of HS2 Ltd, unless we are given instances that we find compelling to justify that.

[Baroness Vere of Norbiton (Con)]

I do not think I have anything further to say to the noble Lord, Lord Adonis. I too would very much appreciate hearing from the noble Baroness, Lady Kramer.

[Baroness Kramer (LD) [V]]

Thank you. I would very much like to take up the Minister’s offer of a meeting with the HS2 Minister, Mr Stephenson. That would be extremely helpful. I hope she might have the opportunity to spend a little bit of time looking at some of the cases. I want to challenge the myth that signing a non-disclosure agreement is essentially voluntary. I think that she will find that it is just standard practice, or a meeting is not offered.

The Minister will also recognise that the non-disclosure agreement then covers everything contained within the meeting. As I say, there may be nuggets that genuinely should remain confidential, but there is a great deal of information that should be out in the public arena. It is a mindset, in a sense, for how organisations conduct themselves—whether it is transparency around information not disclosed on an exceptional basis, when there has been careful thought about whether or not that information should be disclosed, or whether the presumption is that everything will be kept behind the closed kimono and information will made available only on an absolutely must or need-to basis. We need some rethinking on this, because that has not served us well.

The Minister will know from her own experience of looking at infrastructure projects that they come up with shocks. We are probably both very aware of Crossrail, which appeared to be completely on track almost until the very final moments, when we were all expecting the announcement of its opening, when we discovered that it was several years behind.

This issue has to be tackled. The issue of individual whistleblowers is one that I would very much like to take up with Ministers, because a salutary conversation between Ministers and senior management at HS2 could make very significant improvements in that arena.

[Baroness Vere of Norbiton (Con)]

Well, okay, I thank the noble Baroness for her further intervention. I am not wholly the wiser as to what she is trying to do here. She has mentioned the shock of Crossrail. I was not aware that that was anything to do with NDAs. But she was a Transport Minister, so she knows how projects work, and I was actually discussing Crossrail earlier today and asked exactly the same question about how on earth that happened. It is the case that sometimes, for whatever reason, costs increase, but I was not aware that with Crossrail there was an issue with NDAs. If she has information in that regard, I would be happy to receive it, because it would be news to me.

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[The Deputy Chairman of Committees (Baroness Watkins of Tavistock) (CB)]

I call the noble Lord, Lord Bradshaw. Lord Bradshaw, I think you are muted. You have to unmute yourself with the new system. Lord Bradshaw, I am sorry, but as we cannot connect with you, we will move to the Minister.

[Baroness Vere of Norbiton (Con)]

My Lords, connectivity between HS2 and the wider network and the impacts of HS2 on that network are critical concerns. The central aim of HS2 is to improve connectivity along its length and to ensure that it integrates with all modes of transport, including local rail and bus networks.

On rail specifically, noble Lords will be aware that Crewe, at the northern end of phase 2a, has a long history as an important hub on the railway network. Construction of phase 2a will allow passengers who connect through Crewe currently also to connect to HS2 services. This will significantly improve rail connectivity, and we expect regeneration benefits at the station and in the surrounding areas. The details of those services cannot be defined now but will be worked out in due course through existing rail operations processes.

The time to assess the connectivity benefits of phase 2a, whether by rail or indeed any other mode, will be when the railway has been built and the services have been planned such that other services can be connected to them. In the meantime, the Government continue to invest in local and longer range transport infrastructure in the UK to improve connectivity and capacity, and we continue to identify and assess problems and possible solutions.

We continue to talk to local communities and railway operators and to invest in infrastructure and services that level up opportunities for everyone across the country. For example, the Restoring Your Railway programme includes an ideas fund that provides development funding for early stage ideas to explore options to restore lost rail connections. Ten proposals are already being funded at the development stage so that they can move from the first round of the ideas fund to the subsequent stages.

The noble Lord, Lord Snape, asked about the role of the ORR, and I shall be honest with him that I will have to write, but I will happily do so.

Many noble Lords have tried to lure me into a discussion of connectivity and services beyond phase 2a, but I fear that I would only repeat myself and I cannot countenance repetition, so I will not be lured at this point. We are talking about phase 2a, and I believe that there are huge opportunities for its connectivity, many of which were mentioned by the noble Lord, Lord Rosser, and of course the Government take into account those sorts of opportunities whether or not one is building HS2 in the area because local connectivity is always important.

Turning to the amendment of the noble Lord, Lord Rosser, the question of the impact of construction on the transport networks in Shropshire and Staffordshire has been considered quite extensively in the environmental statement. The majority of the phase 2a route passes through rural Staffordshire. As I can confirm from my own visit to the route, some of the sites are accessible only by very minor roads. The environmental statement that accompanies the Bill therefore gives significant consideration to the issue of getting workers to and from the worksites in the most efficient and least disruptive manner.

The draft code of construction practice sets out that workforce travel plans will be developed with the relevant highway authority and these will take into account public transport and cycling and walking routes. It is our expectation that the existing railway network will not be used much on a daily basis by workers on HS2 phase 2a. The environmental statement, taking a reasonable worst-case approach, assumes that all workers will commute either in a car or in a van, with some element of ride-sharing. Worker accommodation will be provided at some locations, and this will reduce the volume of journeys. We also expect many of the workers to travel outside peak hours.

I therefore do not see the merit of requiring an annual review of rail connectivity, as suggested in the amendment of the noble Baroness, Lady Randerson. There will be ongoing discussions about connectivity that will develop over time. The provision of transport in Staffordshire and Shropshire has already been looked at, but, of course, we will continue to be open to opportunities for further improvements. I hope that on this basis, the noble Baroness feels able to withdraw her amendment.

[The Deputy Chairman of Committees (Baroness Watkins of Tavistock) (CB)]

I have received a request to speak after the Minister from the noble Baroness, Lady Gardner of Parkes.

[Baroness Gardner of Parkes (Con) [V]]

My Lords, my comments are about connectivity and probably relate more to Amendment 11 than to Amendment 14. The Minister has just spoken about connectivity, so it seems to be an appropriate moment to follow that point. I declare an interest in that I have close family living near the place where the trains will pass.

HS2 is a hugely expensive and long, drawn-out process; it should be viewed in that context. I am a supporter of high-speed rail, with the qualification that it is not satisfactory that direct travel between London and the north will still not be possible. Instead, travellers and their baggage will need to leave the station in Birmingham that they arrived at and swap to the new terminus, which, I understand, is to be called Birmingham Curzon Street, and is some distance away. This is not good enough for the 21st century; people are used to travelling with less disturbance and more convenience than that. This is an opportunity not to be missed to make a better connection.

I also concur with noble colleagues who have commented on trains, speeds, tracks and their suitability. There really is not much more that I need to say, because so much has been said, and I have been very impressed and interested, but I am a supporter. I hope that in the end this line will provide excellent connections and direct travel from London to the north. I wish it well.

[Baroness Vere of Norbiton (Con)]

I thank my noble friend Lady Gardner for joining the Committee and sharing her thoughts with us. I am pleased that she supports HS2. She raised some issues about Birmingham, and I do not have the information to hand. I will write to her with further information about connectivity and the issues she raised about access to Birmingham Curzon Street.

[Baroness Randerson (LD) [V]]

My Lords, I thank all noble Lords who participated in this short debate, particularly the noble Lord, Lord Adonis, for the impetus he has provided to us all with his points about the eastern leg and the whole issue of connectivity. As the noble Lord, Lord Berkeley, pointed out, the importance of getting across the Pennines is one of the main points here. He also emphasised the demand for shorter-distance travel, which, of course, is what is freed up on existing lines by the building of HS2.

The amendment of the noble Lord, Lord Rosser, deals specifically with issues in Shropshire and Staffordshire, and we might return to that later in the debate on road transport. There is clearly a very important need to improve transport links there. I say to the Minister, who said she wanted to stick to phase 2a: some of the examples I gave her from the Midlands Engine deal specifically with phase 1 and phase 2a and initiatives that flow from the existence of phase 2a. I am disappointed that she has failed to address in detail the point of my amendment, which is to force continued planning on HS2 as we move forward, and to integrate HS2 with other infrastructure developments in the areas through which it passes.

The rail industry is crying out for a smooth flow of future planning. It does not prosper from the stop-start approach, and there is a need for a smooth process in order to maintain skills and capacity within the industry generally. Having said that, I am happy to withdraw my amendment.

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[Lord Rosser (Lab) [V]]

I will be brief. As the noble Earl, Lord Lytton, said, this amendment is about the attitude and approach of HS2. I tried to make a note of some of the things that he referred to. I think he referred to a highly impersonal manner and to the level of control to ensure uniformity of approach when not all cases are similar. I think he referred to the shifting of the burden of proof, to the delaying of payments and to the challenging of decisions line by line. I think he also referred to how it seemed that the Treasury put pressure on the DfT, which put pressure on HS2 regarding finances, and to how eventually all that financial pressure being applied was reflected down the line in the approach to claimants.

I will listen with interest to what the Minister says in reply and, in particular, to whether she accepts that there is validity in what is being said. The noble Earl clearly believes that there is, and I imagine that he is far from the only one who thinks that that is the approach of HS2. I know the Minister will take what has been said seriously. However, I hope very much that she will be able to offer some words that will at least indicate that she will look at the issue and seek to address the concerns raised.

[Baroness Vere of Norbiton (Con)]

My Lords, before I turn to this amendment I need to apologise. There was an error in my speaking note on Monday which I need to rectify. The error was in the statement that I made in relation to Amendment 13, dealing with advance payments of compensation for temporary possession of land. I stated that the Neighbourhood Planning Act 2017 provides for advance payment of compensation in relation to the temporary possession of land and that the amendment was therefore redundant. While it is correct that Section 24 of the Neighbourhood Planning Act 2017 will provide for advance payment of compensation in relation to temporary possession, these provisions will not apply to temporary possession of land under the powers of this Bill. This Bill, like previous hybrid Bills and previous orders under the Transport and Works Act 1992, has a bespoke regime for temporary possession of land which does not provide for advance payments. In my detailed response to the noble Earl, which I have already promised to provide, I will give further details as to the practice of HS2 in respect of the timing of payments of compensation for the temporary possession of land. I will circulate this to all noble Lords who spoke in Committee and place a copy in the Library of the House. I reiterate my sincere apologies that that happened. It will not happen again.

I turn to the amendment. We have heard the underlying concerns which may have led to this amendment and I will set out what the Government are doing about them. Land is needed for the HS2 scheme to build the railway. Some of this land is purchased by agreement but most of the land is acquired through compulsory purchase. This is an unavoidable fact of building most new transport infrastructure and I recognise that, to those affected, it can be devastating. Most individuals affected will accept what the coming of this scheme means for them, come to terms with it and find a way to come to an agreement with HS2 as to when their land will be acquired and what compensation they will receive under the compensation code. For some, they will be happy with the arrangements and agree that their treatment by HS2 has been fair and proper.

However, a few landowners will feel that they have been unfairly treated. They may feel that there is inadequate compensation or that HS2 has not taken due note of their specific individual circumstances. The Government have taken note of those individuals and have been reviewing how they can improve the way in which the project is delivered for all those affected. The noble Baroness, Lady Randerson, asked if we would have a good look at the business practices in this area, and we have already committed to do so.

My colleague Andrew Stephenson has instigated a rigorous land and property review to assess the wider concerns that the amendment seeks to ameliorate. The letter provided by the noble Earl, Lord Lytton, will form part of the evidence for that review, and I am pleased to be able to say that this review will be published very shortly. Of course, Sir Mark Worthington OBE, the Independent Construction Commissioner, deals directly with the complains of individuals affected by the project.

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[Baroness Randerson (LD) [V]]

My Lords, the road traffic issue is one of the thorniest problems associated with this project. When you look at many of the objections or petitions to the Committee, they are actually objections to the building process. That is not surprising: people do not want heavy traffic going past their door when they are not used to it. On the one hand, of course, residents and environmental groups have pressed for more tunnels. There are expensive lengths of tunnels planned. However, with more tunnels and long tunnels, every mile of tunnel adds greatly to the amount of site traffic, with lorries having to remove soil as well, of course, as lorries carrying heavy equipment to the site.

A series of initiatives and techniques is proposed by HS2 to mitigate the impact of the traffic. However, I fear that the use of local roads—and the M6, for example —is bound to impact on travel times and convenience for people way beyond the area close to the line of the project. Schedule 17 ensures that construction routes are submitted to local planning authorities for approval, so I have some questions for the Minister. First, the Committee’s report says in paragraph 69:

“Construction routes used by large goods vehicles over 7.5 tonnes would require the approval of the local highway authority, except where they were using motorways or trunk roads and access to compounds with less than 24 two-way trips per day”.


That is 48 HGVs rolling past your window on a daily basis, which may not make much difference if you are on a major A road but would make a huge difference if you were on a quiet back road. Is this exception in relation to compounds, of the 24 two-way trips a day, a standard provision in construction contracts of this sort?

Secondly, given that it is the local planning authority that will make the decision on routes like this, what happens if the local planning authority withholds approval and cannot reach agreement with HS2 on a reasonable alternative route? Who then decides and where does the decision go? I hope that the Minister can provide us with some answers on that.

[Baroness Vere of Norbiton (Con)]

My Lords, the impact of the works on local communities is of critical importance to the Government, and I thank the noble Lord, Lord Rosser, for tabling his amendment to allow us to have this discussion.

The environmental statement for phase 2a runs to some 17,000 pages and, within it, there is set out in great detail the impact of the proposed scheme on local traffic levels. To manage traffic flow, the phase 2a Bill includes powers for the control of construction traffic, requiring qualifying authorities to approve the local roads to be used by large goods vehicles—and this was noted by the noble Baroness, Lady Randerson—where the number of large goods vehicles exceeds 24 trips per day, to or from a site. That is in total, yes, 48 trips, which over a 12-hour period is one every 15 minutes. The noble Baroness asked whether that was a standard provision in contracts. I shall have to write to her on that matter.

In addition, in the Bill there is a statutory duty on the nominated undertaker to have regard to the potential traffic disruption that may be caused and seek to minimise such disruption so far as reasonably practicable. I suspect that local communities will use that to make sure that action is taken, if there are measures that could be taken but which have not been taken.

As the project progresses and construction plans are finalised—and at the moment we should remember that this railway is not being built; there is no construction at all, so plans are still in development—local traffic management plans will be developed alongside these plans with local authorities, agreeing approaches to highways and public rights of way so that the impact on local communities is minimised.

Members of the public were able to petition the Bill Select Committees of both Houses. Further local mitigation measures have been introduced to the scheme to remove or reduce traffic and transport impacts on the basis of recommendations made by those Select Committees. In some cases, that included restricting and reducing construction traffic, maximising the use of rail and haul roads, and undertaking further traffic surveys.

The noble Lord, Lord Rosser, raised the village of Woore. I took some time to look at my phone and see on Google Maps where Woore is, and it is at the junction of the A51 and the A525. While I have every sympathy for those who will be impacted, because there will be an increase in traffic and construction traffic, it is not the case that at the moment they do not have any traffic going through their village, which is at the confluence of two A roads. We need to make sure that they get the sort of measures that they are expecting. My understanding is that there has been no failure of engagement with Woore and that traffic-calming measures have been offered. Perhaps there has been a mismanagement of expectation here. As construction plans are developed, traffic management plans can be developed; without them, we can have all the engagement in the world, but that will not actually achieve anything until there are construction plans to put into play.

I am sure that Minister Stephenson, when we meet him next week, will have something to say about his ongoing commitment to community engagement and how he intends to be involved with it, since it is a very important part of his work. In the meantime, I hope that the noble Lord feels able to withdraw his amendment.

[The Deputy Chairman of Committees (Baroness Henig) (Lab)]

There are no questions to the Minister, so I call the noble Lord, Lord Rosser.

[Lord Rosser (Lab) [V]]

I first thank the Minister for her reply and all noble Lords who participated in the debate. I just comment that I made it clear when I made my contribution that it was at the junction of the A51 and the A525 in the centre of the village. I also said that what would be entailed was widening of those roads and other works at certain points and that that junction was right at the centre of the village.

I have perhaps made some progress. It was after all the Select Committee that said that there needed to be further discussion as soon as possible—because safety issues were involved—between HS2, Shropshire Council and the parish council. I was not asking the Minister—nor do I think she took it this way—to immediately intervene. I asked that, now we have a dedicated Minister for HS2 and a cross-government ministerial group, what would be their involvement in ensuring that HS2 engages properly.

This is not the first occasion that we have had local communities saying to us that in their view—rightly or wrongly—they do not feel that HS2 engages as well as it should. I also asked whether, if the discussion with the parish council was either delayed or not being entered into in the spirit and intent that the Select Committee envisaged, it could take its concern to the direct dedicated Minister for HS2. I think that, in her closing comments, the Minister referred to the role of the Minister for HS2 in making sure that there was community engagement. I appreciate that that was on a general basis—she was not talking specifically about this case—but I hope that this is one where, if the parish council still believes that the discussion is not being entered into with the right spirit and with the necessary intent, it would not be dismissed by the dedicated Minister for HS2 if it made an approach to him with its concerns. It is then obviously up to the Minister what he would or would not do in the light of that approach.

Having made those comments, I again thank the Minister for her reply and beg leave to withdraw my amendment.

[Baroness Vere of Norbiton (Con)]

I just want to apologise to the noble Lord, Lord Rosser, because I did not hear him mention the road names and now I feel very silly that I did not. I also want to say that in my role as Roads Minister, for example, if a local community feels that Highways England is not engaging with them, they bang on the door of their local MP, the local MP comes to see me immediately and tells me off, I go to tell off Highways England and something gets done. The HS2 Minister will play precisely the same role that I play in making sure that local communities are dealt with properly by whichever delivery body is working with them. We can obviously discuss this with Minister Stephenson shortly, but if I did not explain that particularly well, that is exactly the role I expect him to play.

Amendment 15 withdrawn.

--- Later in debate ---

It seems to me, by just a cursory examination of the Explanatory Notes, that we almost have a cultural issue here. Paragraph after paragraph of this schedule removes various requirements; it takes out ensuring that the landowner does not acquire any rights over phase 2a works under the 1996 Act, et cetera. It is almost a bludgeoning approach to the particular problems of the railway. That goes back to many of the comments made in the debates on this Bill and the almost cultural idea that HS2 seems to need powers that are bullying in nature and very one-sided. I will be interested to hear what the Minister says in response, but I would have thought that this really needs some modification, because it is, in its present form, going to end up involved in massive litigation. That would be bad news for the project, and almost certainly bad news for the private citizens involved. In my business experience, my number one objective has been to try never to go to litigation and to solve problems by agreement. The mechanisms in the 1996 Act that worked towards seeking agreement are removed by this schedule, and I cannot believe that is a good way of going forward. It could well cause delays, expense and unhappiness. I hope that the Government will look at it again.

[Baroness Vere of Norbiton (Con)]

My Lords, I knew there was a reason why I was looking forward to this one. I would be very grateful if the noble Earl, Lord Lytton, could send me the article about party walls; I am sure that all noble Lords would very much appreciate reading it.

On the Motion to remove Schedule 23, rather than address each of the noble Earl’s points in detail, as I do not feel properly qualified to do that, I shall put forward the Government’s reasons why the schedule should stand part of the Bill. We agree with him that the Party Wall etc. Act 1996 works in most circumstances. However, for major railway projects authorised by Parliament, it is appropriate to modify its provisions to streamline its processes, but also retain its protections for neighbouring owners. This was the approach taken by Parliament for the phase 1 Act and the Crossrail Act 2008, and it is the approach being taken here.

The modifications to the party walls Act in Schedule 23 have developed from those included in the Crossrail Act. The experience from the construction of Crossrail was that compliance with the party walls Act process, even as modified, raised risks to the project programme. It is therefore appropriate to alter the process for the HS2 project, as agreed to for phase 1, to avoid construction delays and associated cost implications.

The provisions in Schedule 23 are identical to those already agreed in the phase 1 Act, so this Bill ensures consistency across the HS2 project. Before I outline the proposed modifications in Schedule 23, I wish to make something clear. The regime I will outline does not apply where the underpinning works to adjoining buildings are due to HS2 excavations. Given the more intrusive nature of such works, a different regime is required. This regime is set out in Schedule 2 to the Bill and provides for the giving of notice; the right for adjoining owners to serve counter notices; for disputes to be referred to arbitration; and for payment of compensation. Similar provisions as regards the underpinning of buildings were made in the phase 1 and Crossrail Acts. I hope that goes some way to reassuring noble Lords that the protections for adjoining owners, where major excavation works are needed, are comprehensive.

I shall now continue briefly to summarise the effect of the proposed modifications in Schedule 23, and their purposes. First, the nominated undertaker, HS2 Ltd, would not have to serve notices under the party walls Act to carry out works to which the Act relates. Therefore, the adjoining owner does not have the opportunity to serve a counter notice. This simplifies the process and time taken for agreeing the works. However, the works would still have to be carried out in accordance with the plans and sections agreed with the adjoining owner, as is the process under the current party walls Act. If they are not agreed, the matter would be referred to a single arbitrator for determination, which I will refer to later.

Secondly, a neighbouring owner carrying out works under the party walls Act would not have an automatic right to place footings or foundations on HS2 land or to carry out works required to safeguard HS2 buildings and structures. The nominated undertaker could elect to carry out any such agreed safeguarding works instead of the neighbouring owner at the neighbouring owner’s expense. These modifications are necessary to protect the railway.

Thirdly, any disputes would be determined by a single arbitrator appointed in default of agreement by the president, at the time, of the Institution of Civil Engineers. This would replace the more cumbersome disputes determination process provided by the party walls Act. The purpose of this modification is to provide a speedier and simpler process for dispute resolution. It would ensure that, in a case involving complex railway works, the dispute was determined by a civil engineer with relevant skills, while leaving flexibility for a surveyor to be appointed where that was appropriate. In other respects, the provisions relating to the dispute process, including costs and appeals to the county court, would be the same as under the party walls Act.

The modifications would still provide safeguards for the adjoining owner including the right to compensation and for expenses to be paid in accordance with the party walls Act; the requirement to be given at least 14 days’ notice of the nominated undertaker’s entry on to land to carry out works, except in the case of emergency; that works are to be executed in accordance with such plans, sections and particulars as may be agreed between the nominated undertaker and the neighbouring owner or, in the event of a dispute, are settled by arbitration; and for disputes to be determined by a single arbitrator under the dispute resolution provided by Schedule 23.

These safeguards protect adjoining owners appropriately. To be clear, under the provisions of the Party Wall etc. Act 1996, which still apply, any works required to a party wall would be undertaken at the project’s expense, and compensation would be payable for any damage to the adjoining owner’s property caused by the works to the wall. These safeguards also go alongside the other protections for adjoining owners inside and outside of the Bill. The environmental minimum requirements, through the code of construction practice, provide for the necessary protections to manage and control any potential impacts on people, businesses and the natural and historic environment that may arise from the construction of the works authorised by the Bill.

Finally, we come to the point raised with great insight by the noble Lord, Lord Snape. Are there any party walls on the phase 2a route? The route is rural in nature. It is therefore not expected that many, if any, disputes requiring arbitration under the modified procedure will occur due to the works authorised by this Bill. Where necessary, the modified process would provide a safe and speedy resolution for both the project and the adjoining owner, if indeed there are any party walls on the route.

I shall write in response to the issues raised by the noble Earl, Lord Lytton. I would be grateful if the noble Earl could give some consideration to, and perhaps clarify, exactly what he would wish to change and why. It is very difficult to deal with a long list of, “I don’t like this, I don’t like that”, rather than understanding, given where we are in the process, what would make the difference to this Bill if it were to be changed.

Following all that, I hope that the noble Earl will feel able to withdraw his objection to the schedule being agreed.

[The Deputy Chairman of Committees (Baroness Henig) (Lab)]

There are no questions to the Minister, so perhaps the noble Earl, Lord Lytton, might want to comment briefly on what has been said.