High Speed Rail (West Midlands–Crewe) Bill

Baroness Bloomfield of Hinton Waldrist Excerpts

2nd reading (Hansard): House of Lords
Monday 9th September 2019 Lords Chamber

[Lord Bradshaw (LD)]

My Lords, the most important factor we should consider today is the impact that HS2 could have on climate change and the need to reduce emissions. Compare these figures from the Government: the emissions from a domestic flight are 254 grams, from a diesel car 171 grams—with four passengers they are 43 grams—from domestic rail 41 grams, and from a fully electrified railway 6.9 grams, a very small proportion of what comes from other places.

With these startling figures in mind, a fully electric railway such as HS2 has the potential to make a very significant contribution to making the country carbon-neutral. High-speed railways can have a dramatic effect on modal shift. Take these examples from Italy and Spain. From Rome to Milan, rail use has increased from 6% in 2008 to 74% by 2016, and in the case of Madrid to Seville, there has been an increase from 33% to 84% with the implementation of high-speed rail. Imagine the effect that such a modal shift would have on both aircraft and vehicle emissions on routes from Leeds, Newcastle and Scotland.

The primary argument that has been stated for building HS2 is to increase railway capacity in much of the country. As the main lines on the north-south axis are at full capacity and cannot cope reliably with existing traffic levels, the need for increased capacity is almost unanswerable.

Government constrains the railway in two ways. Insufficient modern infrastructure is provided; the railway industry and Network Rail are in part responsible for this, through lack of efficiency in the fragmented organisation that was created at privatisation, when so many competent engineers left the industry. Let us not forget that the east coast electrification was delivered on time, to a very tight budget, by British Rail. The engineering side of the railway is now being rebuilt under strong professional leadership, and the railway supply industry has got the message that only the most efficient outcomes will be acceptable. But the Government, for their part, need to recognise that improving infrastructure depends on their providing a continuous strategy of development stretching years ahead. They have failed to do this over many years. HS2 and its future must be seen in this context. The objectives of the National Infrastructure Commission should be changed to putting carbon reduction at the top of its list of priorities and revising the appraisal of investment to schemes with long-lasting benefits, such as further extensions to railway electrification.

The other way in which the Government constrain the use of the railway is railway fares. Government and Opposition blame railway fare rises on the franchisees, but they are entirely the Government’s decision. Commuters or business users using the railway face an annual fare increase. Car commuters are protected from that by the fuel tax freeze. What rational Government, allegedly concerned about pollution and the associated growing congestion on the roads, can defend this, particularly as it is associated with early deaths and damage to health? Other countries seek to encourage rail use to deal with these evils but in Britain, both the Conservatives and, I am sad to say, Labour, have closed their ears and listened only to the motoring lobby. There is an available solution: reduce fares and provide sufficient infrastructure.

HS2 can bring immense benefits to the north and the east Midlands—take, for example, the proposed Toton hub, which is not being decided today, which would bring together Nottingham, Derby and Leicester; Birmingham would be reached from Toton in 17 minutes, which at present takes 74 minutes by rail and 60 minutes by car—provided that the fares policy is reasonable. Similar activity is planned around Birmingham for the new railway. But can the Minister give any reassurances today about fares policy generally, and how it might affect HS2?

An important issue to address in considering the investment case for HS2 is project appraisal. Railway projects, particularly on the civil engineering side, have a very long timescale over which they may be enjoyed—the noble Lord, Lord Birt, referred to that. Tunnels and embankments last for well over a century, but current appraisal methodology has a high discount rate and does not take into account the period over which the assets will be in use. There is also the question of the enhancement of property values and the regeneration effects, which need to be factored into the equation. Surely it cannot be right that these benefits are not credited to the investment in HS2. There is an urgent need for the Government to overhaul the WebTAG arrangements they use to calculate the value of major infrastructure projects so as to reflect the longer-term benefits to communities.

I was once asked by a former Secretary of State for Transport—I think it was the noble Lord, Lord Adonis—why road schemes always come out better in investment appraisals than rail schemes. The answer lies in the methodology that is used: road investment schemes are appraised using the “value of time”. That is the time the investment is expected to save road users multiplied by the number of users and what they say they would pay for it through stated preference techniques. No money changes hands, although it does for rail journeys. Significant factors such as the short life of many road investment schemes, as they are overtaken by inevitable traffic growth, also need to be appraised. Railways are penalised for their long-term, lasting benefits in investment by the use of the discount rate, whereas road schemes are appraised using slovenly methods which the Government have failed to face up to for a long time.

The issue of routes across the Pennines and faster journey times between Glasgow and Edinburgh, for which there are now five direct railways, needs to be considered. The HS2 route, which we are considering in the Bill before us, has been adjusted to give Liverpool a direct rapid connection to London as well as to Manchester and Manchester Airport. Progress on modernising routes across the Pennines is incomplete. What is the department’s understanding—

[Baroness Bloomfield of Hinton Waldrist (Con)]

I hope that the noble Lord has come to the end of his comments.

[Lord Bradshaw]

No. I have not been allowed enough time to debate this Bill because the Government of their own volition are proroguing Parliament. I am sorry, but I am not going to give way.

[Baroness Bloomfield of Hinton Waldrist]

Perhaps I may remind the noble Lord that the advisory speaking time is seven minutes. We can be quite flexible, but not too flexible.

[Lord Bradshaw]

I am aware of the advisory speaking time. It was imposed on us by the Government’s edict.

[Lord Adonis]

My Lords, regardless of what the noble Lord has said, I think that it is quite unacceptable that speeches on a matter of such importance should be restricted in this way when in fact the House is under no time constraint whatever, except one artificially imposed by the Government.

[Baroness Bloomfield of Hinton Waldrist]

The advisory speaking time is in deference to colleagues because we have a number of other issues to discuss later on this evening.

[Lord Bradshaw]

I am sorry, but the Prorogation of Parliament has had nothing to do with me. It is entirely at the Government’s behest.