High Speed Rail (Preparation) Bill

Debate between Andrea Leadsom and Brian Binley

Wednesday 26th June 2013 Commons Chamber

[Andrea Leadsom]

I absolutely agree with my hon. Friend, and I am not denying that any railway line or other infrastructure will bring growth. I am saying that the critical differentiator is whether the line brings more growth and jobs than something else, and that is where the case for HS2 is not proven.

[Mr Binley]

I welcome the point about making more use of the high-speed track. Why, then, is my hon. Friend not campaigning vigorously for a station in Brackley, which would be of enormous benefit to her constituents?

[Andrea Leadsom]

I am delighted that my hon. Friend intervened, and that would be a possibility. The bottom line is that we are all here to represent our constituents. There is a case for making that argument, and if I made it, it would undermine the view of many of my constituents that this project is just wrong. Winning that argument would almost certainly cast the line in stone. My hon. Friend will understand that I could not do that, against the very clear wishes of my constituents.

If this is about the value for money of this project versus that of any other project—not the absolute but the relative level of growth and jobs generated by this project, compared with a different one—we need to ask ourselves, first, is this the best value for money for taxpayers? HS2 does mean little curvature of the line. My hon. Friend the Member for Milton Keynes South (Iain Stewart) said that a high-speed track is not much more expensive than a regular train track. That is not what HS2 engineers have told me. They said that it is very engineering-intensive. Because it has to go in a straight line, because there are lots of flood plains, hills and other inconveniences, and because of the speed of the trains, the line has to go through, under and over those obstacles. Therefore, it is much more expensive.

Secondly, high-speed rail has an exponentially higher carbon footprint, so in that sense it is not environmentally friendly compared with a classic line. HS2 has a massive impact on valuable open countryside and sites of special scientific interest, battlefield sites, grade I listed homes and so on.

Thirdly, if, as my hon. Friend the Member for Northampton South (Mr Binley) said, this is about capacity, why not go slightly slower but along an existing travel corridor, so that costs and the impact can be reduced? Fourthly, is the project going to deliver soon enough? We will have no use of it until 2026, yet people say all the time that rail capacity is needed now. Fifthly, does it create the maximum number of jobs? Would another, less engineering-intensive project along an easier route, which we could easily find if speed were not the only goal, generate more jobs? Finally, what about both ends? Does it really make sense to decide where the traveller ends up before we have decided on our strategy for airports?

Having said all that, I note the commitment of the Government and the Opposition, who are determined to see this project built. Although I remain optimistic that during the Bill’s progress substantial changes may be achieved, it is important for me to be realistic. If HS2 is to go ahead, I want to achieve fair compensation and mitigation for the hundreds of my constituents who will be so devastatingly affected.

On mitigation, I urge the Government to ensure that HS2 is much more transparent and that they engage with communities much better than they currently are. Communities’ ideas on mitigation must be given full and proper consideration. The Department for Transport must prioritise the consultation on a full compensation scheme as a matter of urgency. It is shocking that a judicial review had to determine that the original consultation was unfair and in fact unlawful. The exceptional hardship scheme, to my constituents’ bitter experience, has been nothing short of a disaster. Residents up and down the proposed line of route and in the surrounding communities find themselves trapped in their own homes, unable to move either home or business. I strongly urge the Minister urgently to help with this situation.

I hope that, as well as a full compensation scheme that is more generous than the statutory requirement, the Government will agree to a property bond, and that the Secretary of State will meet with the Council of Mortgage Lenders and the National Association of Estate Agents, among others, in order properly to explore the options for a property bond. If banks will not give mortgages on properties because they are blighted by HS2, people cannot get on with their lives, at least until 2026. That is absolutely unacceptable.

Finally, I really regret the position that many Members have been placed in by the Bill. We have been told that this is a vote on the principle of HS2, yet we are also told it is an opportunity for a meaningful compensation scheme to be put in place for those affected. That makes me very schizophrenic, and it places all Members who have strong feelings about this project in a difficult position. I do not want to vote in favour of HS2 but I also do not want to do anything that delays my constituents’ receiving the compensation they deserve. As this is the first opportunity in the Chamber to vote on the principle of HS2, I shall, with a heavy heart, have to vote for the reasoned amendment and against the Second Reading of the Bill, and I urge colleagues to do likewise.

EU-UK Relationship (Reform)

Debate between Andrea Leadsom and Brian Binley

Tuesday 18th September 2012 Westminster Hall

[Andrea Leadsom]

I have been following that matter and know that the Prime Minister has said that he will be responding shortly, so I am sure that my hon. Friend’s question will be noted.

[Mr Brian Binley (Northampton South) (Con)]

Does my hon. Friend recognise the need for contingency planning and negotiation before a referendum? Will she be urging the Minister that contingency plans need to be created now and announced well before the European elections in 2014, and will she tell the Minister that, in this country, the F-word is impolite?

--- Later in debate ---

[Andrea Leadsom]

Yes. I thank my hon. Friend for that intervention. I am coming straight on to that point now, so I am very pleased that he has raised it.

The EU is already a significant trading partner, but there are significant opportunities for growth. Services account for 71% of EU GDP, but only 3.2% of that comes from intra-EU trade, and the UK Government continue to push for the completion of the single market, especially in services. Financial services gave us 11% of our tax receipts in 2009-10, providing a trade surplus of £31 billion in 2010. Financial services is an incredibly important sector in which there is enormous capacity for growth. Of course, that is why the Prime Minister used his veto last December.

What are the alternatives to EU membership? There are probably four. First, there is most favoured nation terms, under which around half of manufactured exports to the EU would face an average tariff of more than 5%, with some sectors being particularly badly hit, such as UK car exports, which would face a tariff of 10%. That would have a significant effect on UK business, making us a far less attractive location for foreign direct investment. In addition, the UK would lose its influence on framing EU regulations, so it would be required to buy in to EU regulations in order to trade with the EU but would have no say in framing them.

[Mr Binley]

Will my hon. Friend give way again?

[Andrea Leadsom]

I would just like to get through my list of alternatives and then I will give way, if my hon. Friend wants to make a point. I am conscious that lots of other people want to speak.

The second alternative is the European economic area option, or the Norwegian option. The UK would be outside the customs union and hence subject to complex and costly rules of origin. The UK would still be subject to most EU regulations, but it would have limited or little ability to shape them. Access to the single market for goods and services would be maintained; the UK would not be subject to common agricultural policy, common fisheries policy or regional policy; and the UK budget contribution would probably be significantly reduced.

The third alternative is a free trade agreement or the Swiss option, under which the UK would be outside the customs union and subject to rules of origin, but would not be formally subject to EU social or product regulation. In practice, all product regulation would probably be replicated in order to export to the EU. Again, under this option the UK would not be subject to CAP, CFP or regional policy, and the budget contribution would probably be significantly reduced. Free trade would be subject to a negotiated agreement.

Fourthly and finally, there is the option of being part of the customs union, or the Turkish option, under which the UK would be a member of the customs union, with free access to trade for goods, but services and agricultural products would not be covered by that option. The UK would be required to negotiate free trade agreements with any country with which the EU opens trade negotiations. We would be outside the EU treaties and institutions, so we would not be subject to CAP, CFP or regional policy, and it is not likely that we would have to make a significant budget contribution. We would not be subject to social regulation, but we would be subject to all product regulation with no ability to influence the shape of it.

[Mr Binley]

Mr Hollobone, I must point out that I am sitting on a Statutory Instrument Committee this morning and I know that you would not want me to miss that, so I will have to go very shortly.

Will my hon. Friend destroy the myth and say that, because of the £57 billion deficit with Europe, Europe is not going anywhere in trade, simply because it is not in its interests?

[Andrea Leadsom]

That is absolutely correct in principle, but as my hon. Friend—being a business man himself—would admit, we cannot simply change overnight, so we would be subject to an exceedingly long-term renegotiation with enormous complexities along the way. It is not quite as simple as he puts it, but yes, essentially I agree with him—it is certainly in the EU’s interests to continue to do business with us, even more than it is in our interests to do business with the EU.

Personally, I think that if we were to leave the EU, the world would not end, but my point is that it would be far better for Britain to negotiate better terms and to remain part of the EU.