High Speed Rail (Preparation) Bill

Debate between Lord McLoughlin and Sammy Wilson

Wednesday 26th June 2013 Commons Chamber

[Mr McLoughlin]

I find the hon. Lady’s position on the issue strange. I should have thought that the Green party would welcome such investment in public railway systems. [Interruption.] I think I had better answer the hon. Lady. HS2 brings a great increase in capacity and I want to say more about that a little later. That is one of the important issues that lies behind the need for HS2. Also, as I point out to colleagues, going from St Pancras station to Canterbury, the first part of the route from St Pancras to Ashford on a high-speed train is a fantastic fast journey, then one hits the Victorian railway network to Canterbury and the journey slows down completely. I want the rest of the country to get the benefit of high-speed rail, not just the area in the south which already has a high-speed service.

[Sammy Wilson (East Antrim) (DUP)]

rose—

[Mr McLoughlin]

I am not sure I can extend the service to Northern Ireland.

[Sammy Wilson]

And I have no idea how the Minister would extend it to Northern Ireland, but Northern Ireland does not benefit from the Barnett consequentials of this spend, either. Because there is a construction interest, can he give an assurance that when it comes to procurement, there will be no repetition of the mistakes that were made in the past whereby UK-based companies did not benefit from some of the high-spend capital projects, and there will be opportunities for construction firms from Northern Ireland?

[Mr McLoughlin]

I am more than happy to do that and I shall say more about that later. Crossrail has set a good example. About 97% of Crossrail goods are serviced by British companies, and the Mayor of London is in the process of purchasing a huge infrastructure project, the new London buses, from Northern Ireland. That is very much in my mind with regard to the way I will be dealing with HS2 and talking to the management of HS2.

--- Later in debate ---

[Mr McLoughlin]

I will say a little more about compensation in a moment. I accept and appreciate the hon. Gentleman’s point about the impact of naming the route. At the time of HS1 several routes were announced and there was potentially more widespread blight. In HS2 we have tried to be more specific about the routes so that we avoid widespread blight. However, I also say to the hon. Gentleman, who is well versed in how these things work, that we will be going out to consultation on phase 2—I will be announcing that in the very near future—and that will enable his constituents and those of the hon. Member for North East Derbyshire to make their points, find out more information, and possibly propose alternative suggestions and ideas.

[Sammy Wilson (East Antrim) (DUP)]

The Secretary of State said that there is a contingency provision of nearly 40% in this project. Is that typical of a project of this size, or does it indicate a higher degree of risk than would usually be associated with such a project?

[Mr McLoughlin]

It is a normal level of contingency that would be put into a scheme of this sort, and it is built in on an internationally based calculation.

This is the right way to plan for the project. In addition, with or without HS2, new rolling stock will be needed on the key inter-city routes linking London and the north over the next 20 years. I hope that deals with the point raised by my hon. Friend the Member for North West Leicestershire (Andrew Bridgen). We are therefore budgeting £7.5 billion for HS2 rolling stock. To put that in perspective, the current inter-city express programme to replace trains on the east coast and Great Western lines, which is creating jobs in the north east, will cost £4.9 billion. The money that I have just announced for the rolling stock for HS2 also includes a contingency of some £1.5 billion.

Good infrastructure is an investment in economic growth. We are investing £14.5 billion to build Crossrail, while £11 billion has been invested in new infrastructure at Heathrow since 2003. Over the period of construction, the cost of HS2 will be less than 0.15% of GDP—I repeat, less than 0.15% of GDP. This is an investment that the country can sustain and needs. That is why tomorrow the Chief Secretary will set out the detailed HS2 funding allocations for the six-year period until 2020-21.

Before I finish, I want to explain what we are doing for those affected by the line. As I said earlier and have tried to make clear throughout this Second Reading speech, I do not dismiss those with objections as irrelevant. We do indeed need to design HS2 carefully, consult properly and compensate fairly. I hope that I can reassure people about why it is right to go ahead. Some have concerns about the impact of HS2 on the landscape. While I cannot deny that a project of this scale will have an effect, I believe that the positive experience of our first high-speed line in Kent shows that the consequences can be managed without wrecking the countryside. For instance, while not a single mile of the M1 is in-tunnel, about 40 miles of HS2 will be in-tunnel. Of the 12.4 miles that crosses the Chilterns area of outstanding natural beauty, 5.8 miles will be in-tunnel and 3.5 miles will be in deep cuttings. No part of phase 2 of the route crosses any national parks or areas of outstanding natural beauty.

It is also important to ensure that proper compensation is made to those affected by HS2. That is why we have introduced the exceptional hardship scheme although there was no statutory requirement to do so. We believe that home owners already affected with a pressing need to move should have recourse to compensation, but without the authority of Parliament to incur expenditure to continue with this compensation, I would need to consider carefully what other mechanisms, if any, we could use. Very soon, we will start a new consultation on compensation.