Railways: High Speed 2

Debate between Viscount Astor and Earl Attlee

Tuesday 21st May 2013 Grand Committee

[Earl Attlee]

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]

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

Debate between Viscount Astor and Earl Attlee

Wednesday 11th July 2012 Lords Chamber

[Earl Attlee]

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]

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]

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.