High Speed Rail (London – West Midlands) Bill

Debate between Baroness Laing of Elderslie and Robert Goodwill

Wednesday 23rd March 2016 Commons Chamber

[The Minister of State, Department for Transport (Mr Robert Goodwill)]

I beg to move, That the clause be read a Second time.

[Madam Deputy Speaker (Mrs Eleanor Laing)]

With this it will be convenient to discuss the following:

New clause 1—Reimbursement of local authorities for expenses and lost business rate revenue resulting from HS2—

‘(1) The Secretary of State for Communities and Local Government and the Secretary of State for Transport shall conduct an assessment of costs incurred by local authorities that arise directly and indirectly from the construction and future operation of HS2, including staff costs, and shall ensure that such additional funding as is required to reimburse local authorities for those costs is made available.

(2) To the extent that such additional funding is not made available through service level agreements, the Secretary of State for Transport shall make the additional funding available through other means of local authority funding within six months of the end of the relevant financial year.

(3) The Secretary of State for Communities and Local Government shall appoint an independent auditor to assess the extent of any shortfall in local authority revenue attributable to closure of or movement of businesses and consequential diminution in business rates.

(4) The Secretary of State for Transport shall establish a mechanism whereby any such shortfall shall be made good within six months of the end of the relevant financial year.’

This new clause is intended to give statutory enforceability to the Department for Transport’s intention to reimburse local authorities for costs consequential on the construction of HS2, and to ensure that there is compensation for lost business rate revenue.

New clause 2—Reimbursement of local authorities for damage to highways resulting from HS2 construction—

‘The Secretary of State for Communities and Local Government and the Secretary of State for Transport shall conduct six-monthly assessments of the amounts required to repair and make good highways in each county following construction of HS2 Phase One, and shall ensure that such additional funding as is required to meet those amounts is made available to local authorities.’

This new clause is intended to give statutory enforceability to the Department for Transport’s intention to reimburse local authorities for highways repair costs consequential on the construction of HS2.

New clause 3—Amount of funds allocated to the Business and Local Economy Fund and Community and Environments Fund—

‘The Secretary of State for Transport shall allocate a sum of £150,000,000 to the funds established to support business and local economy and community and environment initiatives to mitigate and address the effects of HS2 construction.’

This new clause is intended to increase the amounts allocated by the Department for Transport to the Business and Local Economy Fund and the Community and Environment Fund from £30m to £150m.

New clause 4—Compensation procedures—

‘(1) The Secretary of State for Transport shall ensure that included within contested valuation procedures for claimants under statutory or discretionary HS2 compensation schemes are processes for valuation by a valuer with knowledge of local markets.

(2) The Secretary of State shall ensure that all compensation applications are acknowledged within a period of two weeks and responded to substantively within a period of ten weeks, failing which the application will be deemed accepted.’

This new clause is intended to insert procedures for valuation by local valuers in disputed compensation cases, and to seek to ensure timely responses to compensation applications.

New clause 20—Public Sector Operators—

‘(1) Section 25 of the Railways Act 1993 (c. 43) (public-sector operators not to be franchisees) does not apply in relation to the franchisee in respect of a franchise agreement—

(a) which relates wholly or mainly to the provision of one or more Phase One of High Speed 2 passenger services, or

(b) which relates wholly or mainly to the provision of one or more other services for the carriage of passengers by railway where—

(i) the services run wholly or partly on the route of Phase One of High Speed 2, and

(ii) the services are likely to be subject to substantial disruption because of the construction of Phase One of High Speed 2.

(2) The following may in particular be taken into account in determining whether, for the purposes of subsection (1)(b), services are likely to be subject to substantial disruption—

(a) the frequency with which the services are likely to be disrupted,

(b) the duration of the period in which the services are likely to be disrupted (and, in particular, its duration relative to the length of the franchise term),

(c) the severity of any likely disruption.

(3) In this section—

“franchisee”, “franchise agreement” and “franchise term” have the meanings given by section 23 of the Railways Act 1993 (designated passenger services to be provided under franchise agreements).’

New clause 21—Financial Reports—

‘(1) The Secretary of State must prepare a report on expenditure under this Act in relation to each financial year.

(2) Each report must contain details of—

(a) expenditure incurred during the financial year to which the report relates (with capital and resource expenditure specified separately in relation to construction and other activity under this Act and in respect of each head of expenditure referred to in section 1(4)(a) to (c) of the High Speed Rail (Preparation) Act 2013);

(b) the extent to which expenditure incurred during that year represents an overspend or underspend as against the budget for such expenditure for the year;

(c) the likely effect of any such overspend or underspend on a total budget of £55.7 billion in 2015 prices (which includes construction and the cost of rolling stock);

(d) total expenditure incurred under section 67 up to the end of that year;

(e) sums or assets received in that year in connection with expenditure incurred under this Act, including in relation to section 48.

(3) In this section, “financial year” means—

(a) the period beginning with the day on which this Act is passed and ending;

(b) each subsequent period of 12 months.

(4) The Secretary of State must lay each report under this section before Parliament as soon as is reasonably practicable after the end of the financial year to which it relates.’

New clause 26—Protection of business continuity by extended notice of entry in the case of vulnerable businesses—

‘(1) If an operator of a business or undertaking believes that the business or undertaking’s continued operation or profitability would be vulnerable if inadequate notice is received of the planned exercise of powers under sections 4, 5, 6, 12 or 15 of this Act and the associated schedules, the operator may notify the Secretary of State of this belief.

(2) For the purposes of subsection (1), “inadequate notice” means a period of notice that would not provide a reasonable amount of time for the business or undertaking to relocate to a new premises and refit that premises to a reasonable standard before the exercise of the powers.

(3) Upon receipt of such notification, the Secretary of State must facilitate a dialogue with the operator in relation to timing and funding of business relocation, and required notice periods, and shall consider the reasons for the operator’s belief.

(4) Unless the dialogue provides a satisfactory resolution within three months of initial notification—

(a) a 12-month minimum notice period shall apply for the exercise of powers mentioned in subsection (1) in relation to the relevant business or undertaking; and

(b) the early compensation payable to the operator shall be 100%, not 90%, of the estimated relocation costs, and such compensation shall be payable in full, nine months before the anticipated relocation date notified by the operator.”

New clause 27—Report on classification of HS2 as England-only project—

‘Within 3 months of this Act receiving Royal Assent, the Secretary of State must lay before both Houses of Parliament a report on—

(a) the classification of HS2 as an England-only project for the purposes of Treasury expenditure, and

(b) how much extra money Wales would receive in terms of Barnett consequential money as a result of such classification.’

This new clause would require the Secretary of State to produce a report on reclassifying HS2 as an England-only project for the purposes of calculating Treasury expenditure through the Barnett Formula and how much more money Wales would have received as a result.

New clause 30—Community detriment fund—

‘(1) The Secretary of State must establish a community detriment fund.

(2) The community detriment fund will provide an additional source of funding to communities, supplemental to that available through the community and environment fund.

(3) The community detriment fund will be available to address adverse impacts of HS2 construction on communities, including but not limited to impaired accessibility, diminution in availability of community amenities, and physical effects of construction.

(4) A principal objective of the fund will be to remove the need for formal compensation claims and to provide an expedited means of claiming funding for detriment.

(5) The fund will be available only to address adverse effects on communities, not impacts on individual households, businesses or undertakings.

(6) Among the measures that may be considered as available for funding to address detriment shall be transport facilities such as shuttle services.’

New clause 32—Review of fairness of rural support zone compensation—

‘The Secretary of State must conduct a review of the reasons for situating the boundary of the Rural Support Zone in west London which shall be laid before both House of Parliament within three months of this Bill receiving Royal Assent.’

New clause 33—Compensation—

‘(1) Within three months of this Bill receiving Royal Assent, the Secretary of State shall lay before both Houses of Parliament a report responding to a review of compensation applicable to those affected by HS2 Phases One and Two which shall by then have reported in accordance with directions already issued.

(2) The review shall consider the following—

(a) whether a compensation framework based on a property bond system could be an equally or more effective means of compensating those affected by blight from HS2 construction and operation while maintaining a functioning property market, having due regard to demands on public expenditure and investment;

(b) whether the current rateable value limit for compensation and blight claims by owner-occupiers of business premises should be abolished or amended;

(c) whether loss payment ceilings are fair and appropriate;

(d) whether a higher proportion of advance compensation for relocation than the current 90% should be payable in certain instances;

(e) whether the time limits for claiming compensation where no land is taken should be re-evaluated;

(f) the position of those affected by blight caused by HS2 whose property is subject to mortgage and who may find themselves unable to remortgage or in a position of negative equity as a result of such blight;

(g) whether those considering a claim for compensation should receive advance payment of fees for professional advice.’

Amendment 15, in clause 48, page 18, line 8, after “considers” insert

“having regard to the relevant development plan,”.

[Mr Goodwill]

I must confess that I feel like a queue-jumper, because I added my name and the Government’s support to new clause 19 and amendment 15 only last night. I will be brief, because I know that the hon. Member for Middlesbrough (Andy McDonald) will want to expand on them and to explain why his case was so convincing and compelling. It is another example of how our new railway will be delivered not only on a cross-party basis in this House, but with the support of the great cities of the midlands and the north.

I welcome new clause 19 on vocational qualifications. I strongly believe in the importance of ensuring that we utilise the opportunities that HS2 will create for skills and jobs, which is why we have invested in the National College for High Speed Rail. New clause 19 will further bolster the importance of delivering skills as part of the development of HS2. As such, the Government support it becoming part of the Bill.