High Speed Rail (West Midlands–Crewe) Bill

Lord Tunnicliffe Excerpts

Tuesday 8th December 2020 Lords Chamber

Looking at the issue from a different direction, HS2 is a giant linear building site and, as such, is very difficult to supervise, especially outside working hours. It is a building site that abuts literally thousands of residential sites. Therefore, in some ways, I am surprised that we have not spent more time talking about this issue in these debates, but we should certainly be interested in ensuring that, through these proposed reports or any other mechanism that the Minister is able to propose today, regular assurances are given, via us, to local residents that the highest standards are being taken and used and used on a regular basis within HS2 sites. Along with high standards of safety come high levels of convenience for local people. It is easy for safe and unsafe practices to spill over into inconvenience to local people, and inconvenience then spills on towards danger. Therefore, the noble Lord is right to raise this issue and I shall listen to the Minister’s answer with great interest.

[Lord Tunnicliffe (Lab) [V]]

My Lords, I thank the noble Lord for raising these issues. I take his point about the safety of the public and protesters, and I hope that he will get appropriate assurances from the Minister.

The issue is one of corporate culture, particularly on safety. With the permission of the House, I will take this as an opportunity to say a word or two about safety. The noble Baroness, Lady Randerson, was quite right to say that HS2 is a linear building site. She referred to safety standards two or three decades ago. Those were decades when I was responsible for parts of railway safety. I became managing director of London Underground nine months after we had killed 31 people at King’s Cross. That made safety my highest priority for the next 12 years. Essentially, I discovered that safety comes from personal leadership by the people at the top.

Subsequently, I was chairman of the Rail Safety and Standards Board for five years. During the early period of my responsibilities, the Channel Tunnel was completed. That cost 10 lives. We were about to start building the Jubilee Line extension and, pro rata, we would have expected to kill some people, but we decided that that was unacceptable. We set as a major objective of the project that we should kill nobody—and I am delighted to say that we succeeded.

It was a £3.5 billion project, built in extremely difficult conditions under some of the most sensitive, complex and little-understood parts of central London. Leadership was key to conducting the programme to the highest safety standards, which were not traditional in the construction industry at that point. We achieved that by involving the very top people among the contractors. As part of their contracting process, they had to turn up with their managing directors and understand, and commit to, high standards of safety. A key feature of our whole safety philosophy was that London Underground always retained principal responsibility for safety, whoever was doing the work. You cannot subcontract responsibility: you might be able to join other people in that responsibility but you cannot subcontract it.

In preparing for this debate, I looked at the HS2 health and safety policy. It is fine as far as it goes, but I do not know whether there is a real safety culture. Can the noble Baroness take back to the Minister in charge of HS2 my strong recommendation that he makes it his top priority to assure himself that a health and safety culture exists in HS2? I freely offer my help and advice in this task.

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

My Lords, I thank my noble friend Lord Randall for tabling the amendment on this very important topic. The health, safety and well-being of the communities along the route of the new railway, of HS2 staff and of protestors is a primary concern for HS2 Ltd, which has a “safe at heart” approach, putting health, safety and well-being at the heart of the project. That ethos is carried through those employed by HS2 Ltd and those in its supply chain. This goes beyond the worksite itself. People must be safe when they are working on large, complex HS2 construction sites; they must be safe when they live, work or travel near the worksites; and they must be safe when travelling on roads affected by HS2 works and traffic. That is why HS2 Ltd already reports on health and safety in its annual report and accounts, using standard industry metrics. The overall health and safety index score increased throughout the 2019-20 financial year.

We recognise that, given the nature of the works on HS2 and the profile of the project, it is necessary for security personnel to be a part of the project. They ensure the health and safety of those who work on HS2 and those who live and work near it. Those security personnel are held to strict standards. It is a contractual requirement that all security guards working on the HS2 project must hold a licence issued by the Security Industry Authority. Additionally, the companies that they work for must be part of the Security Industry Authority’s voluntary approved contractor scheme, which acts as a quality assurance scheme for the private security industry.

HS2 Ltd has been very clear on the values that it expects to be followed by all staff in its supply chain, and on the behaviours of those in public-facing roles, such as security guards. Actions or behaviours that fall short of these expectations are dealt with firmly but fairly after a thorough investigation. My noble friend Lord Randall asked how members of the public can bring forward concerns. HS2 Ltd operates a freephone community helpline, 24 hours a day and 365 days a year, where anyone can register their concerns. HS2 Ltd has committed to respond to questions and complaints quickly and efficiently, with an acknowledgement within two working days and a response within a maximum of 20 working days if the query cannot be answered straightaway.

Of course, there are also those determined to obstruct the works, with the aim of halting the progress of a project authorised by Parliament. We recognise that members of the public have a right to protest peacefully and in a lawful manner, but it is entirely proper that once Parliament has authorised a scheme, contractors should be allowed to get on with building it. Where any protestors refuse to leave land needed for construction and must be removed, HS2 Ltd works with specialist security staff, the police, the fire service and the ambulance service to do this safely.

Health and safety on worksites, and in the workforce, is of vital importance, especially when it comes to Covid-19. Since the beginning of the pandemic, the HS2 Ltd supply chain has stipulated to all staff and subcontractors the requirement to comply with government and industry guidelines. Where works cannot be delivered in accordance with Public Health England and industry guidelines, sites have temporarily closed to ensure the safety of staff and local communities. Nevertheless, some staff may have to be present to make the safety assessments and to ensure that the sites remain safe and secure.

I was very interested to hear the experience of the noble Lord, Lord Tunnicliffe, and certainly I will take his suggestions back to my colleague Andrew Stephenson MP, the Minister for HS2. It was heartwarming to hear of such a large project being constructed so successfully. The amendment is welcome. It is an opportunity to raise these issues. HS2 Ltd must be held to account by the high standards that it has set. I hope that my noble friend is reassured by what I have said, is less Swampy or Grumpy, is happy, and on that basis is able to withdraw his amendment.

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[Baroness Randerson (LD)]

My Lords, I want to speak to the principle behind the amendment rather than its exact terminology.

There was a time when NDAs were exceptional, but well over 300 of them for HS2 show that we have moved a long way from that in terms of commercial procedure. Why do we have FoI questions and FoI legislation? In many cases, processes such as NDAs were being used to hide inconvenient pieces of information. Information is power; it always has been and always will be.

My noble friend Lady Kramer excellently outlined the complex issues associated with this, particularly on proscribed people. That picks up on the Minister’s response when we discussed in Committee the issue of the number of people coming forward as whistleblowers.

However, the issue goes far wider than HS2 and will, I am sure, be aired in this House on other occasions. The Grenfell inquiry is totally separate, but that public inquiry has revealed how important the detail of commercial arrangements is and what motivation there may be for such hiding that detail. There is commercial realism, but nevertheless, there is a balance to be struck. When individuals sign these agreements they often do so without fully appreciating the complexity of what they are signing up to.

[Lord Tunnicliffe (Lab) [V]]

My Lords, I too attended the Zoom session on this issue. I thank the Minister and those present for organising it.

I can see that NDAs were necessary in the consultation stage, but there is a question mark, which is difficult to debate, over whether they were necessary in such volume. More importantly, was there possible misuse to suppress whistleblowers? We were given some assurances about that, which, once again, I found at least partially convincing. I hope that the Minister will repeat those assurances for the record.

There is a more general point as to whether NDAs are overly used in public procurement. I believe that there may be a case for more transparency and that the Government should consider launching a general investigation into transparency in public procurement. However, I agree with the noble Lord, Lord Berkeley, that that is a bigger issue and it would be inappropriate to pursue it further at this point.

[Baroness Vere of Norbiton (Con)]

My Lords, I recognise that transparency is a key issue in relation to HS2. It enables oversight by Ministers and Parliament, and provides accountability to the public on how we are spending taxpayers’ money and on how the project is being delivered. This amendment is trying to get to the heart of this issue of transparency. However, I do not recognise that it is of any aid in this endeavour. I am not sure that I can add much more to what I already said in Committee or in subsequent meetings, but I will happily go round the track again to put the Government’s position on record.

HS2 enters into two types of agreements—confidentiality agreements and settlement agreements. Confidentiality agreements enable the exchange of information between HS2 and other individuals or organisations, including local councils and businesses. With such an agreement in place, HS2 Ltd can have open and frank conversations with the other party about a range of plans and proposals, some of which may not come off. These could include early considerations of different design options that, if made public, could cause unnecessary alarm and blight local properties.

Confidentiality agreements also enable those other parties to share information with HS2 Ltd without it being made public. These agreements are being made not because HS2 Ltd wants them, but because the other party does. For example, a small local business could share its accounts to determine the compensation available to it. This could not happen if confidentiality was not ensured.

As a number of noble Lords have noted, in the history of HS2 since 2011, 339 confidentiality agreements have been signed. Not all will have been required by HS2; some will have been required by the other contracting party. I know that some feel this is too many. I have to disagree. Thousands of landowners, businesses and councils are involved with the project, so I do not think this is disproportionate. I have the feeling that the noble Lord, Lord Rooker, does not think it is disproportionate either.

Confidentiality agreements are not entered into with staff members at HS2 Ltd. There are confidentiality obligations within staff members’ employment contracts, but this is standard business practice, consistent with that in other public sector organisations.

Settlement agreements are a completely separate form of legal undertaking. They are entirely voluntary and include confidentiality provisions in line with the guidance set out by the Cabinet Office. These agreements can be signed only when an individual has taken independent legal counsel and fully understands their rights and obligations. Settlement agreements are entered into with a small minority of staff who are leaving HS2 to document mutual actions that avoid tribunal claims, or to keep private the sums involved in certain redundancies.

Neither confidentiality agreements nor settlement agreements can be used to gag those who wish to raise concerns about HS2. Whistleblowers are protected by law and none of HS2 Ltd’s business practices contravenes or frustrates this. HS2 Ltd has a whistleblowing procedure called Speak Out, as the noble Baroness, Lady Kramer, noted. This provides a route for staff, contractors and members of the public to raise concerns. The operator of this line is independent of HS2. Queries or concerns raised through this process are investigated by HS2 Ltd’s counterfraud and ethics team, and any necessary action is taken. Where necessary, suitable independent third parties will be brought in to investigate the issues raised. Updates are provided regularly to senior HS2 leaders, including non-executive directors, who act within the seven principles of public life: selflessness, integrity, objectivity, accountability, openness, honesty and leadership.

A number of noble Lords have noted that there may be one or two deficiencies in the amendment. It states that an independent third party should have control over how HS2 Ltd uses what it refers to as non-disclosure agreements—NDAs—which are those two previous agreements I spoke about. We do not feel that this is appropriate, necessary or, indeed, helpful. This issue was considered by the Secretary of State for Transport during the passage of this Bill in the other place, including whether it might be pertinent to appoint further observers or implement new complaints processes. The conclusion was that the use of these standard agreements should not be constrained by the imposition of a third party. There is simply no evidence that such an imposition is necessary or in the public interest.

If a party wishes to enter into a confidential agreement with HS2 Ltd, they should be free to do so. Indeed, they should also have the option for the very existence of that agreement to be private. I tried to follow the contribution of the noble Lord, Lord Berkeley, earlier, and I thank him for it, but I was a little confused. On the one hand, he said that he wanted an assessor for the public interest and to look at all the agreements that have happened in the past—which, as the noble Lord, Lord Rooker, pointed out, is slightly problematic—but on the other hand he noted that the use of a third party should be voluntary between the two parties. I could not figure out how that would work or, certainly, what problem it would solve.

I do not believe that the amendment has merit but I recognise that transparency is important. HS2 Ltd already publishes the number of settlement agreements it has signed in its annual report. In addition, HS2 Ltd will begin reporting the cumulative number of confidentiality agreements it has signed in that same report. I believe that HS2 Ltd is using these agreements in the public interest, and I therefore hope that the noble Lord will feel able to withdraw his amendment.

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[Baroness Randerson (LD)]

My Lords, I thank the noble Earl, Lord Lytton, for his sterling efforts to help us poor lay men understand the complexity of the topic involved in these amendments. I have a rather unfashionable approach to experts; I tend to think that we should listen to them. On this occasion, I also urge the Government to do so.

Having reread the Minister’s response to the last debate on this, I did not gather from that a good, clear reason why the well-established practice is being abandoned. It is clear that the 1996 Act is well established and has worked well, and it seems strange to replace a consensual approach to a problem with an adversarial system. In my experience, adversarial systems always cost more in the end. They can also prove very unfair to those who do not have the nature or the money to embark on an adversarial fight, which can often last months and years, and who therefore decline to press their case when indeed they should be doing so. I urge the Minister to ensure that HS2 is approaching this in a sensible manner for the next phase of the development.

[Lord Tunnicliffe (Lab) [V]]

My Lords, I have a lot of sympathy with the noble Earl, Lord Lytton. It seems that the 1996 Act covers these issues, and I am very suspicious of why HS2 needs such a significant change to the provisions of that Act for its project. I am not convinced that it needs these powers. I believe that, with modest alterations, good management should be able to overcome any problems. However, one faces the classic dilemma of a specialist area in an important Act, which is that I cannot know that I am right because we have not been able to listen to various points of view other than the expert knowledge of the noble Earl, Lord Lytton, and it is possible that the project needs these powers. As I understand it, there are likely to be few party walls in this phase of the project. He may be right that a dispute might significantly delay the project. Hence, I am unwilling at this stage to support the amendment if there is a Division.

[Baroness Vere of Norbiton (Con)]

My Lords, as I know the noble Earl is already aware, the Government cannot accept either amendment to the Bill. I will address the first amendment in this group and then move on to the second.

At the outset, I extend my thanks to the noble Earl, Lord Lytton, for the time and effort he has taken to work so constructively with department officials over the last few weeks. He has painstakingly explained his concerns both in writing and over the course of several meetings, as well as in the debate today. I am pleased that this work has been productive and that the first of these two amendments today recognises that we have moved on from the discussions in Grand Committee.

Schedule 23 to the Bill amends the operation of the Party Wall etc. Act 1996—which I too will call the 1996 Act—to enable the railway to be built as swiftly as possible. At the same time, Schedule 23 retains many of the protections for adjoining owners found in the 1996 Act. This schedule exists to reduce delay in construction due to any disputes which could otherwise arise if party wall matters were sorted out solely under the provisions of the 1996 Act. It also ensures the safety of the railway itself by providing for the railway to be constructed to the right engineering standards next to neighbouring properties. Lastly, it ensures that affected adjoining owners are afforded the protections and compensation due to them.