Transport: HS2

Earl Attlee Excerpts

Tuesday 26th February 2013 Lords Chamber

[Earl Attlee]

My Lords, I thank the noble Lord, Lord Truscott, for securing this evening’s debate, and I thank other noble Lords for their contributions, some in support and some expressing concern. A project as significant to Britain as HS2 deserves time to debate, and I am happy to try to address questions this evening.

My right honourable friend the Secretary of State for Transport recently set out his initial preferences for the route and station options for phase 2 of the scheme, extending the route north of Birmingham to Manchester and Leeds. This is an important step forward in the project’s development, a step closer to the high-speed rail network that will address the key challenges that Britain will face in rebalancing and rebuilding our economy.

I have previously expressed to this House that I believe passionately in a successful Britain, and HS2 provides a rare opportunity to secure a step change in Britain’s competitiveness. HS2 will generate jobs and rebalance the country’s economy, acting as a catalyst for Britain’s future prosperity. Benefits will accrue right across the UK, leaving a lasting legacy for generations to come. This is a transformational project that will enhance rail capacity, connectivity and reliability, helping to underpin economic growth. HS2 will provide the foundation for a truly national network and connect seamlessly to the existing network, serving destinations not directly on the high-speed line such as Liverpool, releasing capacity on the existing main north-south lines to enable additional commuter, regional and, most importantly, freight services to use the line, and creating more space on some existing trains. HS2 will be woven into the transport fabric of the nation. It will be accessible to all and not be just for rich business travellers. The recently proposed routes north of Birmingham offer a great starting point for the consultation process to follow.

The Government are determined to make this an environmentally responsible scheme and have gone to great lengths to listen to those concerned about the environmental effects. While I believe HS2 to be in the national interest, we know that it is not possible to build a railway without any effect on the environment. When designing the route, important considerations such as wildlife habitats must be carefully weighed against other concerns such as protecting as many people’s homes as possible. The Government must make sure that any environmental effects are kept to a minimum and also look for opportunities to benefit the environment along the way, such as the commitment already made to plant 4 million new trees as part of the HS2 project.

Following an environmental impact assessment, the Government will be best placed to understand the effects on the environment and bring forward proposals to make sure that it is protected as far as possible. The initial preferred scheme for phase 2 has been designed to avoid or minimise impacts to important sites, and avoid any national parks or areas of outstanding natural beauty. HS2 Ltd has worked closely with Natural England and the Environment Agency in choosing options and preparing designs that would have no impacts on sites of internationally recognised importance.

Where it is not possible completely to avoid certain areas, mitigating the effects of the line is important. This has been demonstrated through the proposals for the Chilterns area of outstanding natural beauty. Of the 13 miles of route through this area, less than two miles will be at or above the surface. This is more than a 50% increase in tunnel or green tunnel than proposed in the route originally consulted on. Noble Lords have mentioned the charming villages of Little Missenden and Prestwood. I would merely point out that my subsidiary title is Viscount Prestwood.

While a decision on this scale will be made on the basis of the long-term national interest, the economic case for HS2 remains strong. The latest analysis, published in August 2012, shows an estimated £2 of benefits for every £1 spent. As with any assessment of this kind, the economic case will continue to be reviewed and updated through the life of the project. However, the benefit-cost ratio can only ever form one part of the decision-making process for a project of this scale. Wider strategic considerations such as enhancing connectivity and regenerating cities to underpin the rebalancing of the economic geography of this country are clearly compelling cases.

The noble Lord, Lord Rosser, asked about the judicial review case. He will not expect me to say any more than that we expect the judgment shortly. He also challenged me about the progress on the necessary hybrid Bill. He will understand that to design the necessary powers, every piece of land needed has to be specified in the Bill. The process has to be done properly and will just have to take its time.

The noble Lord, Lord Truscott, pressed me hard on the issue of compensating those affected, and he was not the only noble Lord to do so. The Government are conscious that no major infrastructure project on the scale of HS2 can be built without an impact on local communities, as well as the disabled. However, just as the Government are committed to mitigating the environmental impacts, I should like to reassure noble Lords that the Government are equally committed to addressing the impacts on local communities affected by the route. For this reason, for phase 1, the package of measures that have been consulted on goes significantly beyond what is provided for in law, including, for example, a promise to buy all owner-occupied homes in a corridor that in rural areas is 240 metres wide. The responses to this consultation are being carefully considered, and the Government expect the final package to be in operation in the spring. Meanwhile, the exceptional hardship scheme for phase 1 remains operational, and offers have been made to buy more than 100 homes at their full unblighted value.

The Government are currently consulting on an exceptional hardship scheme for phase 2—a consultation that closes on 29 April—and will later consult on a full package of compensation measures for phase 2. Furthermore, the Government are determined to compensate for disruption and effects caused by the new railway, and have been working for years with community groups, local businesses and wildlife charities.

The noble Lord, Lord Truscott, talked about the problem of ancient woodlands. They are very important to our natural heritage; however, the Government have to strike a balance between a range of important considerations for HS2, such as the location of people’s homes as well as other environmental and heritage sites. We are doing everything possible to minimise the impact on ancient woodlands, but where this is unavoidable we will provide suitable mitigation and compensation, following the best practice recommended by ecologists. However, I fully understand the special status of an ancient woodland. As part of the HS2 project, the Government have already committed to planting 4 million new trees and we will also be looking at opportunities to enhance existing, or create new, woodland areas and wildlife habitats.

The noble Baroness, Lady Campbell of Surbiton, made important points about the impact of the construction project on disabled people. I understand her points. During the passage through the House under the hybrid Bill procedure, the noble Baroness will have a greater opportunity to raise her concerns. However, I gently point out that hers was an argument against any large-scale transport project, and not just against HS2.

Many noble Lords who spoke against the project claimed that there was no economic case for HS2. I disagree. The latest analysis, published in August 2012, shows a continued, strong economic case for proceeding with this strategically important scheme. It shows an estimated benefit-cost ratio for the Y network of around 2.5, including wider economic impacts. However, the economic case can form only one part of the decision-making process for a project of this scale, as its benefits go well beyond narrow transport economics. The Government remain convinced that HS2 is the best means of avoiding gridlock on our railways, and delivering the required step-changing capacity and performance of Britain’s intercity rail network to support economic prosperity over the long term. It will cost us more in the long term if we do not make the right decision now.

The noble Lord, Lord Truscott, pointed out that there are potential improvement schemes that have a BCR of 5:1. I do not deny this. However, one can run these schemes but at the end of the day still run out of capacity on the west coast main line. The noble Lord, Lord Adonis, made much the same point. He also made a very important point about the pessimism of the BCR and the difficulty of capturing the full benefit. I am very grateful for his wise comments, and I agree with everything that he said.

My noble friend Lord Freeman raised the issue of HS1. There are advantages to integrating the two high-speed rail lines. There is a strong strategic case for ensuring that a high-speed network in this country connects directly into the many thousands of miles of network in operation across Europe. I welcome the recognition by my noble friend Lord Freeman of the benefits that providing links with international gateways, such as HS1, can bring. My noble friend Lord Bradshaw also touched on HS1-HS2 connectivity.

The noble Lord, Lord Stevenson, raised the issue of why HS2 no longer stops at Heathrow. The spur has not been cancelled; it has been paused, and it is too early to predict the outcome of the airport’s commissioned work or of any decisions taken following that. There are no plans to slow down progress on phase 1, and we need to press on quickly with it so that we can deliver the wider economic benefits that high-speed rail can bring. The noble Lord, Lord Stevenson, also asked a question about where to build a high-speed railway. The main driver of where to build a new railway is the business case, and this is heavily influenced by the capacity constraints on the classic railway network. It is important to point out that eight of 10 UK cities will be connected by high-speed rail.

The right reverend Prelate the Bishop of Liverpool asked if HS2 could go to Liverpool. It is important to understand that trains will be able to run on HS2 and then on the classic network, so that the people of Liverpool will still get the benefits of HS2, as will the people of Scotland; everyone north of London will gain the benefits.

Unfortunately, I have run out of time. Where I have not managed to respond to noble Lords I will of course write. I am also hosting a presentation on HS2 shortly, and I would be delighted to see as many noble Lords as possible attend.

I reassure the House that the Government will continue to listen to those concerned about the impact of the scheme. HS2 is about helping Britain thrive and prosper. Tough decisions have to be taken, but they will be responsible decisions taken in the interest of making Britain better and stronger.