5 Viscount Astor debates involving the Department for Transport

Tue 24th Jan 2017
High Speed Rail (London-West Midlands) Bill
Lords Chamber

Report stage (Hansard): House of Lords & Report stage (Hansard): House of Lords & Report stage (Hansard): House of Lords & Report stage (Hansard): House of Lords
Tue 10th Jan 2017
High Speed Rail (London-West Midlands) Bill
Grand Committee

Committee: 1st sitting (Hansard): House of Lords & Committee: 1st sitting: House of Lords & Report stage: House of Lords & Committee: 1st sitting (Hansard): House of Lords & Committee: 1st sitting: House of Lords & Report stage: House of Lords & Committee: 1st sitting (Hansard): House of Lords & Committee: 1st sitting: House of Lords & Report stage: House of Lords & Committee: 1st sitting (Hansard): House of Lords & Committee: 1st sitting: House of Lords & Report stage: House of Lords

High Speed 2 (Economic Affairs Committee Report)

Viscount Astor Excerpts
Thursday 23rd January 2020

(4 years, 11 months ago)

Lords Chamber
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Viscount Astor Portrait Viscount Astor (Con)
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My Lords, my noble friend Lord Forsyth and his committee have produced in their report a damning critique of HS2. However, the report must be read in conjunction with the even more damning report from the noble Lord, Lord Berkeley. I have always felt that HS2, as it is set out at the moment, is flawed for many reasons, but so often in the past my noble friend Lord Framlingham and I have been lone voices on this side of the House questioning the value of HS2. We may, finally, be winning the argument.

HS2 was based on the premise that time spent on a train for business travel was time wasted. Most trains now have internet connectivity, so the business case and the revenue projections are no longer valid. Then there were the shortened journey times, but we know that those are marginal, as HS2 does not go to city centres. Passengers will be required to change to local trains or buses. London to Birmingham trains will go to the less convenient Curzon Street station. As for capacity, if one looks at the London to Birmingham route, one can see that it is not full to capacity and nor is it likely to be so in the near future, according to the projections that we have seen.

Then there are the more important environmental concerns. The proposed speed is faster than HS1 and any of the high-speed trains in Europe or Japan. I am sorry that the noble Lord, Lord Adonis, who is not in his place, did not address any of the issues relating to speed, cost overrun or Euston station. He ignored those rather important issues raised by the report. The high speed of 360 kilometres per hour uses more energy to speed up, brake and speed up again, which causes more damage to the track and therefore more capital cost and cost of track maintenance. In France, they have lowered the speeds of their high-speed trains to cut costs and track damage. A lower speed would add only a few more minutes to the timetable and not cut capacity.

However, the high speed has even more important ramifications. The higher the speed the greater the need for a straighter track with hardly a corner. Unlike other new railway lines, HS2, as it is designed, cannot follow ground contours like previous rail; it has to go in a straight line. It cuts through the heart of England, causing considerable damage to the environment, protected areas and ancient woodlands. Bizarrely, HS2 has even claimed it could replace and restore ancient woodland—I am not sure how that is possible.

As the noble Lord, Lord Berkeley, pointed out, no thought has been given to the impact on the environment in the communities affected by the route. By the time HS2 is built, lorries will have electric motors and will probably be self-steering. Maybe electric commuter planes for business will be a regular sight.

Then there is cost. We were told originally that HS2 would cost £36 billion, then it grew to £56 billion, then ballooned to £80 billion, and now we see that it is well over £100 billion. I am afraid that HS2 has wasted money on consultants—around half a billion—and huge management salaries. More importantly, as we have seen from the endless complaints from those affected to their local MPs, HS2 has fought tooth and nail against giving proper compensation to blighted households. HS2 management has shown itself unwilling to look at changes or cost savings and contemptuous of those who have come up with better alternatives, such as the Wendover route.

I have to say that the hybrid Bill process is flawed when it comes to considering new railway lines. It is narrow in its remit, fails to properly take account of petitioners and favours the promoter.

But the killer argument against HS2—now accepted by most—is that we want better connectivity in the north of England, between those northern cities. Those in the north do not necessarily want to rush to London; they want to go from east to west, between Manchester and Leeds and Newcastle. I hope that in the Conservative Party, our influx of new MPs from the north will help to win that argument. We need something that brings economic regeneration to the north, which means better infrastructure and better communications on local and regional services in the north.

This has been a sorry tale. The Government have, I am afraid, misled Parliament over costs. The cost benefit, as we can see, is probably now at break even, if that. When the Department for Transport cites commercial confidentiality over costs, we know that the real reason is probably embarrassment. I hope that the Government will take heed of my noble friend’s report and review costs, review the maximum speed and, most importantly, start in the north—by improving infrastructure and connectivity in the north, as the noble Lord, Lord Berkeley, has said.

High Speed Rail (London-West Midlands) Bill

Viscount Astor Excerpts
Report stage (Hansard): House of Lords
Tuesday 24th January 2017

(7 years, 10 months ago)

Lords Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: HL Bill 92-I Marshalled list for Report (PDF, 105KB) - (20 Jan 2017)
Moved by
11: After Clause 52, insert the following new Clause—
“Review: Calvert Sidings
(1) The Secretary of State must commission a review of the proposed construction and route variation required for Calvert Sidings, covering construction and noise impacts which have not hitherto been considered.(2) The review must also consider impacts—(a) on affected communities, farms and estates;(b) of the movement of farm vehicles, works traffic and other traffic;(c) on bridle ways and footpaths crossing the railway route.(3) The review may recommend whether a Transport and Works Act order should be made, under the provisions of section 52, to authorise adjustments relating to Calvert Sidings.”
Viscount Astor Portrait Viscount Astor (Con)
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My Lords, we debated this amendment in Committee. I put it down again in the hope of getting a response to the letter I wrote to the Minister before Report. I would like to thank him for his letter, which I received last night and which was enormously helpful.

The reason that this rather particular amendment relating to the Calvert sidings is important is that this community already has a railway line going through it: the Aylesbury spur. Before HS2 came along, the promoters of the east-west rail scheme said that they were going to upgrade this line as part of the railway across England. Where there is currently a level crossing, because hardly any trains use the line—perhaps one or two a week—they proposed to construct a bridge. This would have satisfied those who live either side of the line.

It is quite tough having one main line across your farm or farms, but even tougher when someone comes along and says, “By the way, we are going to put another one across—HS2”. One person will have the east-west line 100 yards to the north of him and HS2 100 yards to the south. The promoters of HS2 and the Select Committee looked at this and said that they did not think it was necessary to build a bridge. That was the decision of the Select Committee and I will not argue with it—to be perfectly honest I do not know whether it was right or wrong. What happened then was that East West Rail said that it would not build a bridge, either, and withdrew its proposal. As a result, we will have a community that will be hemmed in on both sides.

The Minister has been enormously helpful and said that East West Rail intends to consult on the proposed changes later in the year, which will give those affected a chance to have their views heard. This issue fell between two railway lines, as it were, and so was not considered by the Select Committee. I wish that the noble Lord, Lord Young, were in his place so he could hear that—but perhaps he might read Hansard later. Some of us who are concerned that HS2 will be successful are also concerned about the effect on the people and communities who will live alongside it—but what the Minister has said is a huge improvement and I thank him for that.

The Minister also said that objections to the Calvert sidings could be made as part of a Transport and Works Act order. I have to admit that I do not know very much about such orders. When I looked up the question of whether they have to be approved by Parliament on the Government’s website, the answer was that they do not normally have to be presented before coming into force but that they can occasionally do so through a special parliamentary procedure. If the Minister cannot tell me now, could he write to explain what the process will be: that is, whether it will come before Parliament or not? That way, we can help that community to plan to protect itself. I look forward to the Minister’s response and beg to move the amendment.

Lord Ahmad of Wimbledon Portrait Lord Ahmad of Wimbledon
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My Lords, I thank my noble friend for his amendment. His comments reflect that we have clarified some of the issues, and he has articulated part of the response that I would have given. I therefore also thank him for accepting the Government’s explanation.

The noble Lord did mention two outstanding issues. There will of course be a consultation, as I said in my letter, and East West Rail intends to consult on the change more broadly later this year. At that time, any concerned parties will have the opportunity to make their representations. He also mentioned the Transport and Works Act order for the provision of sidings, primarily to facilitate the business of the FCC waste facility, which is also in this broad location. All the relevant impacts on local communities and farming interests of the works purposed as part of that order, in addition to the comprehensive assessment undertaken as part of the environmental statement for the Bill scheme, have already been taken into consideration.

The noble Lord asked specifically about the process hereafter and I will of course write to him to clarify that. But I hope it is not pre-emptive to assume that the noble Lord will withdraw the amendment because we have answered the questions he raised.

Viscount Astor Portrait Viscount Astor
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I am very grateful for the Minister’s answer and I beg leave to withdraw the amendment.

Amendment 11 withdrawn.

High Speed Rail (London-West Midlands) Bill

Viscount Astor Excerpts
Committee: 1st sitting (Hansard): House of Lords & Committee: 1st sitting: House of Lords & Report stage: House of Lords
Tuesday 10th January 2017

(7 years, 11 months ago)

Grand Committee
Read Full debate Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: HL Bill 83-II Second marshalled list for Grand Committee (PDF, 154KB) - (10 Jan 2017)
Moved by
7: After Clause 1, insert the following new Clause—
“Benefit and cost review of a Wendover Mined Tunnel
(1) The Secretary of State shall commission a review of the potential benefits of constructing a Mined Tunnel at Wendover, Buckinghamshire.(2) The review shall have regard to possible alleviation of High Speed 2 construction and train operational noise, and to alternatives for such alleviation.(3) The review shall include estimates of the costs of construction of a Mined Tunnel and other relevant costs.(4) The Secretary of State must lay a report on the outcome of the review before both Houses of Parliament—(a) within three months of the passing of this Act; and(b) before commencement of any High Speed 2 construction works necessitating the movement of more than 24 heavy goods vehicle through Wendover per day.”
Viscount Astor Portrait Viscount Astor (Con)
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My Lords, my amendment—and possibly those that follow—may rehybridise the Bill. However, as this is Grand Committee there are no votes and that is not likely to happen today. I have tabled them to elicit a response from the Minister. While rehybridising and recommitment does not often happen, it is not unprecedented. As a Minister in a long-past Government, it happened to me on a Scottish transport Bill. Lord Burton put down an amendment about badgers and otters crossing roads—a subject which your Lordships would get rather worked up about. My speaking notes from the department at the time said: “Resist at all costs”, which I gamely tried to do. However, I was somewhat undermined half way through the debate by the noble and learned Lord who had chaired the Select Committee standing up and saying that there was an omission that the committee had failed to debate or look at. He therefore supported Lord Burton’s amendment that it be looked at again, whereupon I had to retire hurt. It did work, and the Bill finally came forward with Lord Burton’s amendment.

These amendments are important because the Select Committee had a very limited remit when it looked at the Bill. It could not stray from its rather narrow route. That said, it produced a good and admirable report. It made some general points about the promoter engaging in effective and timely public engagement and noted that it found the complexity of the process difficult for petitioners to understand. Petitioners sometimes also found the documentation provided by the promoter, “arcane, opaque and unhelpful”. They were also sometimes unfairly treated by late replies after months of silence, suggesting that their concerns had perhaps been met. I am sure the Minister will be the opposite this afternoon: clear, helpful and responsive.

In its report, the Select Committee noted the issues that surround Wendover and reported that it had directed a longer Chilterns bored tunnel, greater noise protection for Wendover and better construction arrangements in Hillingdon. It did not comment on the evidence presented on the proposed mined tunnel further along the route. It could not consider changes that require an additional provision without a direction from the House. We have the opportunity at a later stage of the Bill to give that direction for it to be looked at via a transport works order. The initial longer, mined tunnel was rejected by the promoter on grounds of cost. Although it is obvious that a longer tunnel is more costly and complicated, the promoter did not fully take account of the possible savings on the compulsory purchase of land and housing and the effect on the environment. There were two experts and, as we all know, experts on both sides of the argument hate being proved wrong. Those who wished for a longer tunnel provided an expert—described by the Select Committee as a credible witness—who disputed the costs. Indeed, those costs were not greater but actually a saving on the promoters’ costs. That is because the mined tunnel would be 4.2 kilometres long and it would save just over a kilometre of viaduct. As we know—as the experts tell me, anyway, and I think they are right—viaducts are expensive to build and maintain. There could be a saving on property, there could be a saving on costs, and it would solve noise issues. Mined tunnels are cheaper and have been done before. The area is virtually the same type of chalk as the other Wendover tunnel. Indeed, the water table does not present an insoluble problem.

I am no expert. I hesitate to say who is right between tunnelling and rail experts. I leave that expertise to the noble Lord, Lord Berkeley, who does know about these things. But I do know that this is an issue that should be re-examined as there is clearly a difference between acknowledged experts. In the overall scheme of timing and costs, it is actually quite minimal but for the people of Wendover it is extremely important and there is no excuse for the Government and the promoters not to get it right. Those affected by the route have a right to have their case heard and their petitions properly scrutinised, not rejected out of hand for the convenience of the process. I have tabled this amendment to ask the Government to look again at the issues of cost and to ask the Minister whether he will consider having a short, quick, independent review into whether this is feasible. I beg to move.

Baroness Mallalieu Portrait Baroness Mallalieu
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My Lords, I support the noble Viscount’s amendment. It appears that this provision was not in fact looked at by the Select Committee. It is a provision which, unlike the concerns that were raised by the noble Lord, Lord Snape, is likely to save money rather than cost more—

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Lord Snape Portrait Lord Snape
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My Lords, I do not necessarily oppose the amendment, although I listened with interest to what my noble friend said about how this would save money. I am not sure what costings the noble Viscount has carried out. There has been some criticism of the costings so far as the whole project is concerned, yet we are told by the noble Viscount and my noble friend that this will actually save money. Perhaps, for the clarification of the Committee, they could tell us how their conclusions have been arrived at. I am no expert. My noble friend Lord Berkeley might tell me. I am not quite sure what a mined tunnel is and what differentiates a mined tunnel from a normal railway tunnel.

Viscount Astor Portrait Viscount Astor
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As I understand it, a mined tunnel is where you use a digger to make a hole, as opposed to one of those circular machines that makes a round hole. Apparently it is a cheaper way of doing it than the other way, but I am not an expert.

Lord Snape Portrait Lord Snape
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Though he is not an expert, the noble Viscount has done extremely well. I am enlightened.

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Lord Young of Norwood Green Portrait Lord Young of Norwood Green
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I can assure your Lordships that we looked at all the alternatives at great length on many occasions. Although I did not always enjoy the repetition, it was important that we heard the arguments. We heard from experts on both sides, so if there is one thing this Committee need not worry about, it is whether these alternatives were given a lengthy and fair hearing.

Viscount Astor Portrait Viscount Astor
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My Lords, I am grateful to everybody who has spoken. I particularly enjoyed the idea from the noble Lord, Lord Snape, that a four-kilometre mined tunnel would put HS2 passengers in darkness. If I have got right the speed that the train is going to go, in a four-kilometre tunnel, you only have to blink three times and you have missed it.

Lord Snape Portrait Lord Snape
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I am sure that is right, although I am not sure whether it would stand up mathematically in a courtroom, but we are not talking about just this particular tunnel—there is lots of tunnelling through the Chilterns, which has come about as a result of demands, including semi-hysterical demands from a then member of the Cabinet, which in the view of many of us who have taken an interest in the project have added unnecessarily to the cost and makes travelling by train less pleasant. A lot of the people that the noble Viscount represents are against the project as a whole—a point that we have made time after time.

Viscount Astor Portrait Viscount Astor
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I am not going to get into that debate with the noble Lord, but I think I am right in saying that the purpose of HS2 was not to give travellers better views of the countryside but to get them somewhere more quickly and more efficiently, although I am sure it is an added bonus if they have a better view of the country.

To come to the point, there is a difference of opinion among experts. The noble Lord, Lord Adonis, does not like to see any criticism of this project and regards the promoter’s and the department’s experts as necessarily right. I do not know whether they are right. I did not say who was right; I said that during the Select Committee hearings there were a lot of conversations between experts that show there is a difference of opinion, as there have been since its report. All I am saying is there is an opportunity for the Minister and his department to look at this again. That is all I am asking. I am not saying who is right and who is wrong, but that there is an issue. It will not delay the Bill or the process. It is about whether the Minister’s department will look at the evidence and see whether it addressed all the concerns and issues.

Lord Adonis Portrait Lord Adonis
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I was not seeking in any way to say that one set of experts should be more highly esteemed than another. I was making the factual point that my understanding, which has been confirmed, was that the Select Committee heard experts on both sides. Indeed, it engaged its own experts because it was not going to take the word of one set of experts against the other. It spent many hours reviewing the case and reached its judgment. I was simply making the point that if that is established as a fact, I cannot see how we would be in any position to substitute our own judgment for theirs.

Viscount Astor Portrait Viscount Astor
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The Select Committee came to a conclusion, which may be right or wrong. But its members are not rail experts. I admire its distinguished report, but even they would not say they got everything right on every single issue. What I am saying is that during and since the committee, issues have arisen, and there has been further debate and work done on cost. My request to the Minister was whether his department would look at it without in any way holding up the process. Perhaps my noble friend might give this some thought between now and Report. Would that be possible?

Lord Snape Portrait Lord Snape
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The noble Lord said that this mined tunnel would not, in effect, make much difference as far as the journey is concerned. Would he be interested in knowing—I have just been assured by an expert that these facts are correct—that out of the 210 kilometres of the high-speed line, no less than 47 kilometres is already in tunnels? If he does not mind me saying so, that is more than enough.

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Lord Ahmad of Wimbledon Portrait Lord Ahmad of Wimbledon
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I am always grateful for the noble Lord’s interventions.

My noble friend talked about analysing and reviewing evidence. Let me reassure him that the Select Committees of both Houses have looked at this in detail and that it was an exhaustive process, as we have already heard from one member of your Lordships’ committee. It was not looked at only for a few seconds in passing—a blink and then you are through the tunnel, so to speak. This is the view of the department, the Government and myself, and we have to respect the decisions that have been reached by not one but two Select Committees on a process which they themselves—notwithstanding that there were additional provisions as part of the proposals—looked at. They considered the opinions and views of experts from both sides, as we heard from the noble Lord, Lord Young, and their conclusions after that exhaustive process need to be both reflected on and respected.

Viscount Astor Portrait Viscount Astor
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I have listened to what my noble friend said and will consider it carefully. In the meantime, I beg leave to withdraw the amendment.

Amendment 7 withdrawn.
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Moved by
8: Clause 2, page 2, line 14, at end insert—
“( ) change the landscaping and other works, including shaping bunds to maximise the noise attenuation of the bunds by including steep sides, noise attenuation fences and trees, to mitigate any adverse effects of the construction, maintenance or operation of any of the works and of the operations of the railway authorised by this Act;( ) change the works for the benefit or better protection of property, people, farm animals in yards, woodlands, habitats or wild species affected by any of the works or the railway operations authorised by this Act;( ) reduce the extent of farm land taken for biodiversity where there is demonstrable equivalent local biodiversity capacity and considerate estate management and farming practices;”
Viscount Astor Portrait Viscount Astor
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My Lords, Amendments 8, 25, 26 and 27 have nothing to do with tunnels—I can assure the noble Lord, Lord Snape, about that. They are designed to make the route even more pleasant for those travelling on it and to protect those living alongside it.

My first amendment is perhaps more general, although it particularly affects Buckinghamshire, which, as your Lordships know, is a county with exceptional areas of outstanding national beauty. It does, however, have a dense population at the same time as having a wonderful countryside, and has some motorways and roads but also narrow lanes. One group that has been concerned throughout this whole process but has felt excluded is the parish councils. Some of them do not have the funds to enable them to take part and some do not have the expertise, and although there were community forum area meetings they did not always work or address all the issues. They certainly did not have some of the expertise that they required to make a good case. Local communities have knowledge of local traffic flows, school runs and public transport, and know what the effect of disruption is. If there was one noticeable point made in the Select Committee’s report, it was that the promoters had failed adequately to understand the long-term disruption, noise and pollution during the building stage of HS2. This amendment asks whether during this process adequate attention will be spent on these issues.

The next three amendments are more specific. Amendment 25 concerns the proposed Calvert infrastructure maintenance depot. The depot requires a large site that will serve as a base for the maintenance of the railway and for infrastructure projects. In the original plan an accommodation bridge was included as a substitute for a user-worked crossing—not being an expert, I had to ask someone what that was before I felt able to speak to your Lordships. The accommodation bridge has now been removed by the promoters, as stated in a recent letter that was received after your Lordships’ Select Committee’s petitioning stage, and so was not able to be considered. The alternative user-worked crossing was instead proposed. I do not know whether this late change was intended to be an improvement or was a cost-saving exercise but the result is that the effect on Doddershall has not been properly reviewed—certainly its residents do not think it has. HS2 at this point follows the Bletchley to Bicester to Oxford existing railway, which will form the new upgraded east-west line. That upgrade will be an added complication. The present ameliorating effects of the route will result in a much longer and more expensive journey for farm traffic crossing in and out of Doddershall. As it is not clear why the original accommodation bridge was removed, will the Minister look at this, and see why it happened and whether it makes sense? It is a detailed point but it has been put to me by those who feel that they have an important concern that was not able to be addressed because their letter was received after the Lords stage

Amendment 26 concerns the route and, again, local traffic problems. I have given the Minister notice of what I am going to say because this is a complicated local issue. He may wish to write to me with a detailed reply. It is about configuring the local roads between Quainton and Waddesdon; otherwise, an estimated 1,200 people will have a much longer, more difficult journey between the two, adding to traffic complications. It is a local issue and I am sure there are many local issues along the route and it would not make sense to bring up every single local concern about HS2. I have brought it up today because people in the area feel that the promoters changed the effects that this was going to have after the Select Committee process. Therefore, they were not able fully to address the issues.

Finally, Amendment 27 asks a question about the alternative route that was developed by Arup for HS2 and was presented by Twyford Parish Council in Committee in the Commons. It is a route that would save the demolition of houses. The promoters believe that it is straighter and less costly. Again, I am not an expert. I do not know. They also believe that it would remove noise issues along the route and the disruption to local residents and farmers would be much less. My point to my noble friend the Minister is: this is a local issue. It is not the biggest issue that affects HS2, but it is important to the people who live there. I have tabled these amendments to ask the Minister whether he will consider these representations to see whether they can be addressed to help those who are affected by HS2. I beg to move.

Lord Ahmad of Wimbledon Portrait Lord Ahmad of Wimbledon
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My Lords, I thank my noble friend for tabling his amendments. I appreciate that he is seeking further clarification. I will take each amendment in turn.

First, the provisions set out in Amendment 8 replicate the powers already in the Bill under Clause 2(3). With respect to reducing the amount of land take, we are already under a general duty to minimise the amount of land we are taking for the railway if it is possible to do so without compromising the construction and implementation of the project in a timely and economic manner. Furthermore, we have given a general assurance to the National Farmers’ Union and the Country Land and Business Association that we will aim to further minimise the loss of high-quality agricultural land where there are opportunities to do so through the detailed design stage of the project. I therefore hope that my noble friend will feel reassured in that respect, and I am sure those discussions will continue during the design phase.

My noble friend also raised the issue of changes or alterations, referring to the area between Calvert and Doddershall. I inform him that the Bill scheme has not been altered in this area, as he suggested. The accommodation bridge to which he referred is part of the East West Rail scheme and not part of HS2, and as such will not be subject to this Bill. He mentioned a particular letter that was sent by concerned parties. I have briefly checked with officials and I have certainly not seen it. If it is available and he would like to forward it, I will respond appropriately to the matters raised in it.

Amendment 26 suggests a revised road layout in the Quainton area. As my noble friend may know, this issue was considered in detail by the Lords Select Committee, having been the subject of a petition and an evidence session. My view, which I reiterated in the debate on the previous amendment, stands: it is not appropriate to revisit here issues that have been discussed at length and in detail by the Select Committee. The considerable time that the Select Committee spent on those issues needs to be respected.

I also appreciate that this issue could be delivered outside the Bill powers, in which case it certainly does not require further consideration here. My noble friend recognised that but, as the requested road layout would require new land to be acquired, objections to the change would be expected, in particular from the Buckinghamshire Railway Centre due to the adverse impact on its operations and land use. I assure my noble friend that these issues have been fully explored by the Select Committee, which ultimately did not see merit in making a recommendation of the kind being sought by the amendment. It would create a requirement for significant works to the existing Station Road, where the proposed road layout would need to be raised to pass over HS2, taking land from the Buckinghamshire Railway Centre overflow car park and thereby restricting access to the adjacent industrial premises. It would also require substantial temporary diversion works to Station Road during the construction of the revised road alignment.

Amendment 27 seeks a review of the route alignment. Although I respect and appreciate my noble friend’s commitment to refining the scheme, as he notes in the amendment, the “route C” alignment was an option considered in 2010 as part of the appraisal of route options consulted on at that time. It was the subject of detailed consideration, but ultimately was not selected when the Government announced the route in 2012. At this late stage in the progress of the Bill it is inappropriate to suggest that we disregard all the previous work that has taken place. I respect the fact that my noble friend has sought clarification by tabling these amendments and I hope I have been able to provide it, at least in part. As I said, if there is a letter that has yet to be answered I will ask my officials to look at it and we will respond accordingly. I hope that, on the basis of the assurances I have provided and the clarifications I have given, he will be minded to withdraw the amendment.

Viscount Astor Portrait Viscount Astor
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My Lords, I thank my noble friend the Minister for his response, particularly to Amendment 8, which is very helpful. I will indeed write to him on Amendment 25 and the correspondence that has been received. I have one point to make about the Select Committee. The noble Lord, Lord Adonis, the Minister and the noble Lord opposite talked about it as though whatever comes out of it should be written in stone and never questioned, looked at or judged again. They forget, however, that the Select Committee had a very narrow remit; it could not look outside that very narrow route. It was restricted and could not look at lots of different possibilities because the remit under which it was set up did not allow it to do so, even if it wanted to. That was the issue that affected it. My noble friend has been enormously helpful. I am very grateful and do not wish to detain the Committee. However, although I understand why the committee had restrictions—otherwise the petitions would have gone wider and wider and wider—these prevented it looking at some of the issues that affected the route. I give way to the noble Lord.

Lord Young of Norwood Green Portrait Lord Young of Norwood Green
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I did not want to intervene again, but I feel I must correct the impression that the noble Viscount is creating that we did not consider these issues. All the issues raised by the amendments were considered in depth. We were not restricted. We heard numerous petitions on the possible alternatives. In his opening contribution, the noble Viscount suggested that we somehow did not listen to parish councils. I assure him that we listened to them on many occasions. Inevitably, some were better than others. After some of the legal representation that we heard, I would have much preferred to hear from the parish councils again. The idea that because they did not have high-powered legal representation they were unable to make their case is not true. I just wanted to correct the impression that the Committee should look at this again because it was not given a proper searching examination by the Select Committee; it was.

Viscount Astor Portrait Viscount Astor
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All I can say to the noble Lord is that some of those involved in parish councils felt unable to present in the way that they should have; I quite respect what he said.

Lord Framlingham Portrait Lord Framlingham
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I am sorry to speak again, but I am beginning to wonder what we are doing. If the Select Committee has done everything that needs doing and the Minister will not accept any of the amendments, I am not sure how this Committee will contribute much to the process.

Viscount Astor Portrait Viscount Astor
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I do not know whether my noble friend wants to answer that, but perhaps I may finish responding to the noble Lord. He is quite right that there were a lot of petitions, and I am not in any way criticising the Select Committee or any of the work it did, but the petitions affected the route as proposed. The committee was unable to look any wider into some of the other issues. That was the point I was trying to make. I was not disagreeing with the noble Lord, but I was pointing out that the Select Committee was under certain restrictions. Having said that, unless my noble friend wishes to say anything, I beg leave to withdraw the amendment.

Amendment 8 withdrawn.

Railways: High Speed 2

Viscount Astor Excerpts
Tuesday 21st May 2013

(11 years, 7 months ago)

Grand Committee
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Asked by
Viscount Astor Portrait Viscount Astor
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To ask Her Majesty’s Government what assessment they have made of alternative routes for HS2, and compensation terms for those affected by it.

Viscount Astor Portrait Viscount Astor
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My Lords, the Government have so far rejected the opportunity to pause and wait until the Davies report on airport capacity in the south of England is published in 2015 and are pressing ahead with HS2. Therefore, we may have a new railway line on the right side of the country but, equally, we could have a railway line on the wrong side of the country. Who knows? However, HS2 is going ahead. What we do know is that the department has rejected a route stopping at Heathrow and so far has rejected a spur that would connect to Heathrow Aiport, so we are faced with the possibility that Heathrow may end up with the worst rail connections of any major airport in Europe.

In its recent report, the House of Commons Transport Select Committee called for a third runway at Heathrow, rejected the idea of a new airport in the Thames estuary and called for HS2 to serve Heathrow directly. What is the Minister’s response to this report? I imagine that the Government will want to wait until the Davies report has been published.

Today, we have to deal with the route for HS2 proposed by the Government. If it cannot cross the Chilterns at their narrowest point, it must be tunnelled where possible or mitigating measures must be put in place to give maximum environmental protection. If the Government would accept just one principle, which they accepted for HS1—that for any areas of outstanding natural beauty the route should be tunnelled—opposition to HS2 in the Chilterns would largely disappear. Another help would be to add an intermediate station, perhaps at Bicester, so that at least those living in the area could benefit from HS2.

It is worth repeating what made HS1 acceptable—what became known as the Kent principles: any route should be tunnelled or engineered with cuttings and sound barriers to minimise sound intrusion; it must follow the shortest route for areas of outstanding natural beauty; there must be an advantage for locals in intermediate stations, such as Ashford, which was created for HS1; and, where possible, any route should follow noisy transport corridors such as existing motorways. HS2 achieves none of these for one very simple reason—speed. I will come back to that in a moment.

The urgent issue that really concerns me is compensation. The judicial review judgment found that the Government must review their proposals. If you live within 60 metres of the line, you are automatically entitled to compensation. However, perhaps your Lordships can imagine HS2 crossing the middle of the Prince’s Chamber. If your house is on the first Cross Bench, you get compensation, but if your house is on the third Cross Bench, you get nothing. I would submit that there is not a large difference between them.

We know of at least one house 450 metres away from the proposed line that has been valued as worthless by the local building society. Many with homes just outside the planned route have found that their value has plummeted and that they cannot sell at any price. The mortgage company is demanding repayment due to the loan falling below the value of the house, and of course the banks are not interested in helping.

I will give one example. A couple in their late 70s live a few metres beyond the 60-metre limit. Their house was worth well over £200,000; now, it is virtually worthless. They cannot afford to sell but they cannot afford to stay. They want to move into a care home but they cannot. Theoretically they would have to pay because their assets are worth more than £70,000, but they do not have the money and they do not have a way out. They do not meet the definition of hardship and will be able to make an application for compensation to the Lands Tribunal only after 15 years, based on physical nuisance under complex rules. If they have not been gathered by then, they certainly will not be able to afford the costs of the case. They are suffering in a terrible vicious circle, and this is an issue that the Government ought to consider.

So far, three-quarters of those who have applied to sell their homes to HS2 have been turned down under the Government’s exceptional hardship scheme. I believe that they should review the terms of the scheme. A property bond has been proposed that would allow home owners to apply to the Government for an undertaking to purchase the property at a future date if a buyer cannot be found at the unblighted price. The bond would be transferable with the property to give confidence and security to any future purchaser or mortgage lender. This is not a new scheme. This type of scheme has been operated by Central Railway Ltd as well as by the British Airports Authority, which has a similar scheme, and mortgage lenders have successfully worked with the scheme.

The Government should remember that we are considering not just the effect of the trains once the line is completed but the many years of construction: the noise, the dust in summer and the hundreds of heavy lorries using country lanes. Local businesses, too, will be affected, and under the scheme they will have to prove loss of business—but only after some years. It would be depressing to see the value of your business decline in front of you and be unable to do anything about it until it was too late. We know that HS2 will cost more than £32 billion for the track, and another £8 billion for the trains: more than £40 billion in all. Can we have a little fairness for those who suffer real hardship? Will the Government consider a property bond? I gave the Minister notice that I would ask this question.

As I said earlier, the issue comes back to speed. The faster you go, the straighter the track has to be: no corners, so no flexibility. The Government have designed the track so that trains can run at 400 kph, which would make them some of the fastest in Europe. The plan is that they will start at 360 kph and work up to achieve an average speed from London to Birmingham of 330 kph. HS1’s maximum operating speed is 225 kph, with an average speed from London to the Channel Tunnel of 211 kph. The average speed of the HS2 service shows that it will have to operate at much slower speeds through tunnels and urban areas. Of the 225 kilometres of HS2’s route from London to Birmingham, less than half—109 kilometres—will be capable of allowing the planned 400 kph speed, due to various constraints.

So why design a track that will enable trains to run at this high speed of 400 kph when we know that it takes time to build up speed and as much time to brake to a slower speed, both of which will use energy and increase CO2 emissions? The problem with a projected speed of this nature is that there can be no corners: the track has to run virtually in a straight line. The minimum radius of curvature for the track increases, I am told—I am no mathematician or expert—from 4.05 kilometres to 7.2 kilometres. What is more, it will then limit the length of tunnels in which the train can travel at speed. Therefore, the line has to be straight. It cannot avoid urban areas or the unspoilt valleys of the Chilterns, or follow the line of the M40, where possible, to Birmingham.

We know from Europe that train speeds are being reduced, not increased, due to the disproportionate effect of very high speeds on train and track maintenance and on energy consumption and efficiency. If the plan was to operate HS2 at the same top speed as HS1, all the main issues could be dealt with, including a station at Bicester linking through to the Midlands, which would attract local support. Following the M40 as closely as possible to minimise environmental impacts would avoid most of the scarring and destruction and the damage to many homes. Many fewer houses would be affected than under the current plan, and that would enable the Government to save money, even though there would then have to be a longer track. It would avoid the loss of ancient monuments and woodlands and the severance of many public rights of way.

Therefore, my plea is for the Government to see what can be done. It is not too late. With HS1, we know that right up until the moment it was built there was a debate on where the track should go. It is not impossible to make changes. We know that we have an enabling Bill coming before us in this Session of Parliament, and we know that the Government hope to introduce a full Bill perhaps next year, so it is not too late to review the route and to take in all the matters that affect the route, whether it is speed, the environmental benefits or the environmental impact. I quite understand if the Government are determined to go ahead, and they should do so, but I urge them to look at the effect on those who live along the route and to see what they can do to mitigate the damage and improve the compensation that is available.

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Earl Attlee Portrait Earl Attlee
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My Lords, I am extremely sorry to the Committee if I appeared to be aggressive. I have no intention of doing that at all. However, the noble Lord is raising detailed questions about the route, and my duty is to defend the whole scheme. It will be the duty of Parliament to finally approve the route. At the moment, we are consulting about the route, and we need to do that properly. I will of course read Hansard carefully to look at the precise points that the noble Lord has made.

I turn to the issue of train speed, which my noble friend Lord Astor raised. The route has been engineered to allow for train speeds of up to 400 kilometres per hour in future, should there be a commercial justification for doing so. Operation at up to 400 kilometres per hour would require the consideration of whether improved train design enabled services to operate at that higher speed without additional significant adverse environmental effects. Going fast does not disproportionately increase the cost of the infrastructure, but it means that the alignment has to be more or less straight.

I will try to answer as many questions as I can in the time remaining. My noble friend Lord Astor proposed a station at Bicester, but then he went on to point out the difficulties of accelerating and decelerating from stations. My noble friend made further comments on train speeds. While it is true that some European operators are looking at operating at slightly lower speeds, largely due to maintenance issues, we are not aware of any that are planning to go as low as 225 kilometres per hour. The infrastructure is still built for higher speeds so that, when technology allows, they will be able to return to those higher operating speeds.

My noble friend also talked about the spur to Heathrow. It is important to understand that the spur has not been cancelled but has been paused, and it is too early to predict the outcome of the Airports Commission’s work or any of the decisions taken following that. There are no plans to slow down the progress of phase 1. We need to press on quickly with phase 1 so that we can deliver the economic and wider benefits that higher rail speeds can bring. Does pausing the spur mean no third runway at Heathrow? The Government’s position on a third runway at Heathrow remains unchanged, as set out in the coalition agreement. However, the Airports Commission has been tasked with identifying and recommending to the Government options for maintaining the UK’s status as an international hub for aviation.

My noble friend Lord Astor and others have suggested that, where possible, the route should follow noisy transport corridors such as existing motorways. During the course of the scheme development work in 2009, six main corridors, including the M40 and the M1, were considered. The routes were rejected, primarily because of their adverse implications for journey times and economic benefits, which were compounded by their higher costs. Any environmental advantages that these options offered over the proposed scheme were marginal at best, and therefore not decisive in discounting these routes.

I turn to the issue of compensation. We are clear that we need to have a very good compensation scheme. Most infrastructure projects compensate property owners only at a much later stage of development, when statutory measures apply. For the HS2 project, however, an exceptional hardship scheme has already been introduced while the route is being considered. Subject to consultation later this year, the Government have already stated that we hope to introduce subsequent schemes that go even further than the law requires in order to ensure fair compensation for those directly affected by HS2.

Perhaps it would be helpful if I gave a case study for what we are doing with the EHS, remembering that it is inappropriate for me to comment on specific individual cases. Take a lady living 350 metres from the proposed HS2 route who suffered from an illness that meant she was unable to safely climb the stairs in her home. The lady therefore needed to sell her home to purchase a bungalow but, because of the proximity of HS2, she was unable to achieve a sale at the required price. The lady and her husband applied to the EHS, providing documentary evidence that they met the criteria for the scheme, including that the lady was suffering exceptional hardship. A majority independent panel considered the evidence and recommended that the lady’s home should be purchased from her. This recommendation was reviewed and agreed by a senior civil servant at the DfT. Some 12 weeks later, we exchanged contracts on the lady’s home for the full, unblighted value. So far we have brought 81 properties on to the scheme, spending just under £50 million, and have offered to buy a further 32.

Viscount Astor Portrait Viscount Astor
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I am grateful to my noble friend for giving way. He kindly said that the Government have the intention of introducing a property bond. I realise that there will not be time for him to go into the details today but I would be grateful, when he has had a chance to consider what it might be, if he would perhaps write to those who have spoken in this debate with any details that he has.

Railways: High Speed 2

Viscount Astor Excerpts
Wednesday 11th July 2012

(12 years, 5 months ago)

Lords Chamber
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Asked By
Viscount Astor Portrait Viscount Astor
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To ask Her Majesty’s Government what progress they have made in reviewing the economic viability, value for money and benefit-cost ratio of the High Speed 2 London to Birmingham, and London to Leeds and Manchester, lines.

Viscount Astor Portrait Viscount Astor
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My Lords, HS2 is a controversial proposal designed to operate a high-speed rail link between London and Birmingham, and eventually onwards to Leeds and Manchester. It is controversial for a number of reasons.

The first is the route: a new line cutting through some of the most unspoilt countryside in England, where there are already two existing lines, one operated by Virgin Trains and the other by Chiltern Railways. Either line could be upgraded or the new line could follow one of the existing motorway routes—an option suggested by the Transport Select Committee—which would cause minimal disruption compared with HS2.

However, I want to concentrate on cost. The question is whether the cost of £33 billion is worth the benefits that might accrue. We all want better services from north to south, but I challenge the assumption that HS2 is the answer. The Government’s case rests on the assumption that rail travel is destined to grow at the rate projected by the Department for Transport, but one has to say that the department’s record in projecting future passenger numbers is not good.

In the words of the National Audit Office, the department used “hugely optimistic assumptions” about passenger numbers on HS1. Passenger numbers from 2007 to 2011 were only one-third of the original 1995 forecast and two-thirds of the 1998 forecast. The NAO went on to say that the costs had exceeded the savings from shorter journey times, and the Public Accounts Committee said that costs would eventually rise to £10 billion.

I am sure that the Minister will quote the support of the All-Party Parliamentary Group for High Speed Rail. However, it is a group set up specifically to support high-speed rail, so I would remind him of another report by the Public Accounts Committee, which came to the opposite conclusion and recommended:

“The Department must revisit its assumptions on HS2 and develop a full understanding of the benefits and costs of high speed travel compared to the alternatives”,

and that it should consider the alternatives, such as investment in more local train routes.

The department claims to have improved its forecasting, with better computer modelling and more computer power, but of course wrong assumptions in produces wrong statistics out, whatever the rise in computer power. What it has failed to take into account is that the projected benefits are largely dependent on business use, and business use is changing.

Why travel so often when Skype and internet conferencing are becoming the norm? Reductions to already short journey times are largely irrelevant to business efficiency as carriages are now linked to the internet and provide a good working environment. To assume that all time spent on trains is wasted is simply not credible. The department’s own report Productive Use of Rail Travel Time and the Valuation of Travel Time Savings for Rail Business Travellers asserts that a reduction of 10 minutes in journey time increases the amount of working time by only 0.75 of a minute.

HS2 does not deliver a step change in journey times. It connects to the centre of Birmingham but there is no onward connectivity and a change is required; nor does it connect to Heathrow, as promised in the Conservative Party manifesto. This connection is offered as a possibility, some time after phase 2, in 2033. What is more, a route via Heathrow would cause the least damage to the Chilterns, crossing through its narrowest part. HS2 will cut the journey time from London to the centre of Birmingham but only by barely half an hour, and much less if you want to make an onward connection.

By the Government’s own admission, the benefit-cost ratio for phase 1 declined from 2.4 in March 2010 to 1.4 in January 2012, and to just 1.2 in April 2012. However, even this overestimates the true position, as the DfT also admits that its assumptions are based on out-of-date gross domestic product figures. If one takes into account the latest GDP forecast and uses the later rail demand model, the benefit-cost ratio dips below 1—well below the Government’s own ratio for acceptable capital expenditure benefits.

In an earlier statement to the Transport Select Committee, the then Transport Secretary Philip Hammond agreed that below 1.5 he would need to seriously review the viability of the project. A full Y route to Manchester and Leeds produces only a modest increase to 1.4 in the benefit-cost ratio. It seems to me that the department is going to have to review the project.

We know that peak-time services from Euston in the evenings are only 56% full and that Manchester services are 45% full. We know that total journeys per person by all transport modes are declining, not increasing, so to justify the projected increases by 2032 there would have to be a large shift from road to rail. Looking ahead to 2032, we know that most cars will be electric and therefore very fuel-efficient. The Government accept that HS2 does not reduce CO2 emissions. There is no evidence that HS2 is going to cut road usage. By 2032, electric cars could easily be driving themselves on the main routes, as has already been tested in America.

What will increase in the future, as I think everybody agrees, is commuter use of the rail network, but HS2 does not solve that issue. I believe that the answer is an upgrade of the existing line, more frequent services, more carriages and longer platforms—which could all be achieved at a fraction of the cost for the same result.

The recent growth following the upgrade of the west coast main line led to huge improvements in service frequencies and journey times and shows what can be done by improvements to existing services. Upgrading is estimated to cost about £2 billion and the department says that it produces a benefit-cost ratio of over 5.0. That is real value for money. This would cater for all the future demand predicted by the department and provide the capacity much sooner so that any crowding problems were addressed much faster. It would also cause significantly less disruption to the existing network than what is proposed.

We are also told that 1 million jobs will be created, but the evidence to support this claim is questionable. Various comparisons are made concerning Europe and the TGV, but a close analysis of what has happened in Europe shows a very local movement in jobs and not necessarily a total increase in jobs in the wider area. Just 1,500 permanent jobs will be created by HS2, but the department admits that seven out of 10 jobs attributed to phase 1 will benefit London, not the regions. We could create a lot more jobs in the north by supporting industry there with direct investment, grants, help with bank finance and better local services.

We need to spend money upgrading our entire rail network. We need infrastructure spending that links the rail network to airports and then to city centres. Those in the north have been pressing for a northern hub that connects key northern cities by rail. East Anglia, for example, is desperate for better services and connections. The concern is that HS2 will inevitably drain funding away from the rest of the network and that desperately needed improvements will not get funding.

The commendable House of Commons Transport Committee report called for a proper transport strategy before HS2 phase 1 and phase 2 proceed. It also called for an explanation of how HS2 fits within an overall transport strategy and for the summary and assumptions of the financial case so they can be properly examined.

We need a rail strategy that will bring real benefits to northern businesses rather than just marginally faster journey times to London. The planned HS2 does not connect to HS1, which is not much help to passengers arriving from Europe. They will still have to get the Tube or the bus across London.

HS2 fails on the four key principles that even HS1 managed to pass: it does not follow existing noisy transport corridors; it does not follow the shortest route through areas of outstanding natural beauty; it is not proposed to be tunnelled through the most sensitive areas; and it does not provide benefits for local communities affected by the route or by access to the service.

I have done a quick canter through this about as fast as a train will go, because time is limited. I have given notice to the Minister of the questions I have asked this evening. I am sure he will be able to address the issues of cost and benefit and try to prove the Government’s case for HS2.

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Earl Attlee Portrait Earl Attlee
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My Lords, I congratulate my noble friend Lord Astor for securing this debate on a very important subject. I also thank noble Lords for their typically well informed contributions. It is certainly not a matter of nimbyism. It is important and right to raise questions about a project as significant as HS2 and I am happy to try to address such questions this evening. Large scale infrastructure projects are not new or unusual. They have been going on for many years and they have been controversial. For instance, the Jubilee line extension was controversial at the time of its conception, but where would we be without it now?

In his opening speech, my noble friend questioned the benefits that we expect HS2 to deliver. I want to reassure him on this point. I believe passionately in a successful Britain, a country that can compete and thrive in a global economy. To achieve this we need infrastructure fit for the 21st century and beyond. We cannot just make do and mend. Good transport equals good economics. One of the best ways to support British business, power up the recovery and put people back to work is to invest in, and modernise, our transport networks. HS2 will revolutionise travel in our country, transforming connectivity between London, the Midlands and the North, and, as the noble Lord, Lord Adonis, said, it is the best decision. It will provide a step change in the capacity of the rail network to accommodate the growing demand for long-distance travel, providing up to 18 trains an hour, each with up to 1,100 seats. Without it, our main north-south rail arteries will become increasingly disrupted and overcrowded, damaging both our economy and our way of life.

HS2 will slash journey times for passengers between our key cities and regions. It will be a truly national network benefiting the whole country. While the high-speed line itself runs to Birmingham, Manchester and Leeds, the new trains will be designed to continue onto the current network, providing direct services to destinations further afield, such as Liverpool, Newcastle and Glasgow. It will help rebalance the economic geography of the country, supporting thousands of jobs and unlocking growth and opportunity for generations to come. It will be a truly transformative project.

Some noble Lords have questioned whether a new high-speed network is the best way to provide the additional north-south capacity our country needs, suggesting instead a programme of enhancements to the existing network, but this would provide only a short-term answer to the demand challenges addressed by HS2, and even then, only at the cost of significant disruption to passengers on affected lines, all the while sacrificing the connectivity benefits high-speed rail will bring.

Several questions related to the approach taken to assessing the economic viability of the project. In January, when my right honourable friend the Secretary of State for Transport announced her decision on HS2, she set out the economic case underpinning this project and the department will shortly be publishing further updated economic analysis. However, the benefit-cost ratio analysis forms only one part of the decision-making process for this strategically important project. There are wider strategic considerations as well, which I outlined a moment ago. I will try hard to answer as many supplementary questions as I can and when I fail I will, of course, write.

The noble Lord, Lord Rosser, asked about the two hybrid Bills. He will know that each hybrid Bill requires a very considerable amount of work to determine what powers are needed. Several noble Lords, including my noble friend Lord Astor and the noble Lord, Lord Stevenson of Balmacara, claimed that there is no economic case for HS2. I beg to disagree. HS2 continues to have a good economic case. The Government have always been clear that as well as offering good value for money in itself, there are wider social and economic benefits associated with improving connectivity and supporting regeneration in our major cities.

My noble friend Lord Bates was concerned that HS2 will not rebalance the economy. He talked about the north-south divide and the unintended benefit for London at the expense of the regions. The Government’s position has the support of businesses and their representative organisations across the country, which express their belief in the importance of improving our transport network, and specifically our intercity rail network, in order to enable higher economic productivity.

The noble Lord, Lord Stevenson, asked about the release of the Major Projects Authority report. The Cabinet Office has a policy of not releasing the reports for two years, but they will be released at the appropriate point. Noble Lords asked me about the DfT’s record in forecasting and modelling transport demand and they suggested that it is poor. The Department for Transport has significantly improved its passenger forecast modelling in recent years. As acknowledged by my noble friend Lord Astor, we have a better understanding of what drives passenger demand, better computer modelling and our approach to risk analysis has improved.

The position of HS1 and HS2 are very different. Eurostar was accessing a completely new market for intercapital rail travel in competition, it transpired, with a burgeoning short-haul deregulated aviation market. HS2 will relieve a seriously congested existing railway between the two largest conurbations in the country—a long-existing market where demand is well understood and predicted to grow. My noble friend Lord Bradshaw suggested that our appraisal is based on the over-inflated value put on business travellers’ time. The analysis underpinning HS2 has been based on the Department for Transport’s well established approach to appraisal, one that is recognised across the transport industry and conforms to the highest standards of evidence. I know that my noble friend is very concerned about this point, especially in connection with the appraisal of road transport schemes.

Many noble Lords talked about route selection. In terms of the London to West Midlands alignment, HS2 Ltd considered more than 90 options for stations and sections of the route. There are obvious benefits to staying close to existing transport corridors where possible, which is why HS2 Ltd’s recommended route crosses part of the Chilterns close to the A413 and the Chiltern line and, indeed, uses part of the Great Central line. Overall, an M40 route would be an inferior option. It would be longer, have lower maximum speeds, impact on more population centres, resulting in unacceptable impacts on communities and it would be more expensive. In answer to one noble Lord—I think it was my noble friend Lord Bates—since the main capacity constraint is in the south, HS2 will start in the south.

The noble Lord, Lord Stevenson of Balmacara, suggested that the nation could not afford it. The nation cannot afford not to invest in HS2. Investment in HS2, and our wider rail network, can help us overcome the economic challenges we face and secure the country’s economic future. The construction costs will be spread over two decades and on this basis will involve an average level of annual spending of less than £2 billion a year at 2011 prices.

My noble friend Lord Astor suggested that a new railway is not needed to solve the railway capacity problem. By the mid-2020s forecasts show that without HS2, our main north-south rail arteries will be becoming increasingly disrupted and overcrowded, damaging our economy and our way of life, as pointed out by my noble friend Lady Scott of Needham Market. The Government have carefully considered the option of providing additional rail capacity, including upgrading existing lines. These might provide a short-term fix, but not a long-term solution. While alternatives may offer a good benefit-cost ratio, none is able to offer the scale of benefits or change that HS2 offers and would not deliver the increase in capacity that we require. Even the best alternative proposed would lead to decades of disruption on the existing network and lead to unreliable and overcrowded services and more freight on our roads. In answer to the question from the noble Lord, Lord Rosser, the capacity constraints make HS2 essential. The value of time saved is taken into account in the BCR.

My noble friend Lady Seccombe talked about community engagement. The Government and HS2 looked long and hard at possible changes to the route. However, the final design of the route is not yet set. The final design will be developed in consultation with local communities as part of the environmental impact assessment. Once that is complete, we expect to consult on the environmental statement in spring 2013. I encourage everyone with an interest to participate in that consultation. We want local communities to get engaged in the design through their local forums. I do not understand how the problem described by my noble friend arose. I hope that she will brief me later after the debate.

Viscount Astor Portrait Viscount Astor
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My Lords, as we have 10 minutes, may I ask my noble friend to address one issue? Does he accept that the benefit/cost ratio has fallen below 1.5? I will quite understand if he is unable to give a detailed answer, but perhaps he would be kind enough to write to me and other noble Lords who have spoken today.

Earl Attlee Portrait Earl Attlee
- Hansard - - - Excerpts

My Lords, I have already undertaken to write where I have not answered. I am endeavouring to get through all my Box notes as fast as possible.

I know that there is no easy way of building a railway in our country but the concerns of local residents are an important priority for the Government and HS2 Ltd will ensure that local views are fed into the design process and that local communities are aware of what progress has been made with the railway.

My noble friend Lady Seccombe asked what the Government are doing to address blight. The Government recognise that HS2 is already having an impact on communities along the line of route. That is why the exceptional hardship scheme was introduced. When the Secretary of State for Transport announced the decision to proceed with HS2 in January 2012, the Government also committed to introducing a generous compensation package for the long term that goes beyond what was required in law. Developing the right property compensation package for HS2 is complex, as it must be fair to those affected by HS2 proposals while also recognising our broader responsibilities to the taxpayer. The Government will shortly be consulting on the detailed proposals to help affected property owners, with the aim of introducing long-term compensation measures as soon as possible.

My noble friend Lord Astor asked about the HS2/HS1 link, a point raised previously by the noble Lord, Lord Berkeley. I can assure my noble friend that the Government intend to connect HS2 to HS1 through a link built in the first phase. This will enable trains to run directly between HS2 and HS1 without the need for passengers to change trains. There are clear strategic advantages from integrating Britain’s new high-speed rail network with the only existing high-speed line in this country and thence to the growing high-speed rail network on the continent.

My noble friend Lord Astor talked about the demand for HS2 in a digital age. Some have questioned the demand projections underpinning the case for HS2, positing a world in which improved digital communication replaces the handshake and the face-to-face conversation and thus the train journeys that make them happen. If we turn to history, it is clear that the advent of the telegraph, the telephone and now the tweet have not lead to reductions in travel demand—far from it. I reassure the House that the Government will continue to keep the economic case and indeed the wider business case under review throughout the life of the project to ensure that it reflects the latest research, evidence and understanding of the project.

HS2 is much more than just a BCR. It is about a step change in capacity and connectivity for passengers. It is about unlocking the potential of our major cities and regions, supporting jobs and driving growth. It is about building a dynamic society, a thriving economy and a successful Britain. HS2 is not just viable; it is a vital part of our future prosperity.