High Speed Rail (London – West Midlands) Bill

Andrew Bridgen Excerpts

Monday 28th April 2014 Commons Chamber

[Mr McLoughlin]

If the hon. Lady will be patient, I shall deal with that point a little later in my speech.

I was telling the House that it is time to connect great cities such as Birmingham, Manchester, Sheffield and Leeds. It is time for better links between north and south and between east and west, and time to connect to world markets to make the most of their skills and talents. It is time for HS2; time for a new north-south railway line.

Today, we can get a high-speed train from London to Lille but not to Leeds, and from London to Brussels but not to Birmingham. That has to change, but of course our investment plans must also run much further. More than £38 billion is being invested in the existing rail network between 2014 and 2019, including about £16 billion of Government support as part of our plans to invest £73 billion in all forms of transport between 2015 and 2021. We are trebling the budget for our major road schemes to £15 billion between 2015 and 2021; we are investing £14 billion in local transport schemes between 2015 and 2020; and next year, the Davies commission will propose options on future airport capacity. We need to do all this because if we are to support our economy, we need our infrastructure to work. Two years after the Jubilee line reached Canary Wharf in 1999, 27,000 people were employed in that area. By 2012, the figure was over 100,000.

We begin, it is true, with the advantage of our Victorian inheritance, but others are catching up. At the start of 2007, China did not have a single high-speed railway line; today, it has more than 6,000 miles in service, and by 2015, that will be 11,000 miles. France and Germany have been reaping the benefits of a high-speed rail network for decades, while we have just 67 miles from London to Kent and the channel tunnel.

Of course we have a good existing network, but we need to improve it, and upgrading Britain’s rail infrastructure is a key part of this Government’s long-term economic plan. In the south and south-west of Britain, the great western line is receiving more investment over the next five years than any other route. This will bring huge benefits to people working in that region.

[Andrew Bridgen (North West Leicestershire) (Con)]

The Secretary of State has said that HS2 is not about speed but about capacity. Given that only 8% of the population regularly use trains, what percentage of the population does he think will actually use HS2 and who does he think will benefit from it?

[Mr McLoughlin]

I was happy to give way to my hon. Friend, but I am mindful of what he said about me yesterday on Radio 4, bits of which I agree with and bits of which I am slightly worried about. He said:

“Patrick McLoughlin is an excellent Cabinet Minister”—

I agree with him on that—

“and a former Chief Whip of the Conservative party. Indeed, if you had a difficult policy you wanted to push through Parliament, Patrick is your man. I would maintain that if the PM wanted the Herod Bill, Patrick would be the man to see that through Parliament.”

I am not quite sure whether to take that last bit as a compliment. When I talk about the need for capacity, I am talking about the need to free up capacity on other lines as well.

One of the great successes in the rail industry in this country is the massive growth in the railways, and I shall say more about that later. If we look at the tables, we see that 20 years ago, rail passenger numbers in this country were constant. Over the past 20 years, however, the numbers have risen from 750 million to 1.5 billion passenger journeys a year. The numbers continue to grow, and we need to address that fact. That is why we are right to do what we are doing with HS2.

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[Mr McLoughlin]

Who said, “Me first”?

[Andrew Bridgen]

I thank the Secretary of State for giving way. Is it not true that some 240,000 dwellings lie within a kilometre of the route, many of which are totally ineligible for any form of compensation under the current scheme, and that many people will go to their graves having been trapped in houses that they could not sell because of HS2?

[Mr McLoughlin]

I do not accept what my hon. Friend says, which was not reflected in the experience of building HS1.

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[Mary Creagh]

Absolutely. It will also be a key issue for my right hon. and hon. Friends from Coventry, because one of the pinch points on the west coast main line is the crush when commuting from Coventry into Birmingham in the rush hour.

[Andrew Bridgen]

Can the shadow Secretary of State confirm that the Opposition’s support for HS2 is still contingent on its being delivered for under £50 billion?

[Mary Creagh]

We will have to see what the Committee delivers as the Bill goes through the Committee process. There are clearly issues to do with the High Speed 1 and High Speed 2 link, which has now been taken out of the Bill. Some of the issues that the Committee will consider will be debated more fully tomorrow.

A Bill of this size and importance will be controversial, and we must debate it properly. A project of this size will affect very many individuals and communities, and the environment. We must minimise the negative impacts wherever possible and deal with the utmost sensitivity with the people whose homes are affected.

On the capacity crunch, HS2 will deal with some of these constraints on our railways. Already, thousands of commuters are standing on packed rush hour trains into Birmingham, Manchester, Leeds and Euston. Last week’s figures from the Office of Rail Regulation showed that the number of rail journeys has more than doubled since 1996. This number will continue to rise, and by 2026 peak demand will be two and a half times the capacity at Euston, twice the capacity at Birmingham New Street, and nearly twice the capacity at Manchester Piccadilly. There is already more demand for train services than there are train paths available on the west coast main line, and by 2024 it will be running at full capacity.

This congestion will have a significant impact on the freight industry and its customers. The west coast main line is the key artery in the Rugby, Daventry and Northampton golden triangle for freight. Over the next decade, passenger constraints will become more serious on the east coast main line and the midland main line. Network Rail’s £38 billion investment programme for the next five years will deliver signalling improvements, platform extensions and some additional services, but those incremental changes will not deal with the looming capacity problem.

Labour Members know from our time in government that major infrastructure takes years to plan and to construct. Many right hon. and hon. Members will remember the Crossrail Bill, which Labour introduced in 2005 and which received Royal Assent in 2008. That railway will open in 2018. Labour in government identified the need for more capacity on London’s railways by the end of this decade, and we acted to deliver it. We must do the same now to build the infrastructure we need to mitigate the looming capacity crunch on our railways.

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[Mrs Ellman]

One of my concerns is that if the new line is not built, the problems of capacity will lead to whatever Government are in power being tempted to increase rail fares to manage demand.

Further recommendations from the Select Committee taken up by Sir David Higgins and Lord Deighton include ensuring wider access to the new network—

[Andrew Bridgen]

Will the hon. Lady give way?

[Mrs Ellman]

I am sorry; I am limited in time to allow other hon. Members to participate.

Further recommendations include ensuring wider access to the new network and providing new services on the freed line—perhaps we should designate those as high speed Britain projects—together with promoting regional economic strategies with local enterprise partnerships and others, making sure that the potential for economic regeneration along the lines and beyond is recognised.

High Speed 2 will improve connectivity, but that improvement is not solely in relation to connecting the midlands and the north to London. It is also about improving the links between the major cities of the north and the midlands, between cities such as Manchester, Birmingham, Sheffield, Leeds and Liverpool. The potential benefits of High Speed 2 are immense. The current benefit-cost ratio estimate for the full network is 2.3. That means £2.30 in benefit generated for every £1 invested, but those figures do not take into account the very real potential for major economic regeneration. It is the major cities which recognise what that potential might be, and they are among the strongest advocates of the new line. Indeed, the research commissioned by the core cities themselves identifies around 400,000 new jobs that would come from the development of High Speed 2.

Little attention has been given to the major potential for employment across the country from building and operating HS2. According to the Government, this could provide over 3,000 jobs in running the railway, and more than 24,500 jobs in construction, together with 400,000 additional jobs through regeneration. It is essential that the Department for Transport produces a strategy for procurement to deliver maximum opportunities for British firms. The Department must be more active in doing that. The proposals for a new skills college will be extremely important in widening those opportunities.

Those who oppose High Speed 2 discuss the size of the investment required. Indeed, HS2 involves a major investment of around £50 billion over about 20 years. Costs must be controlled to secure value for money, but the benefits must be maximised. I understand that some hon. Members will have justifiable local concerns which should be addressed, but these do not outweigh the strategic case for HS2. Without HS2, the west coast main line will become increasingly overloaded. Commuters will suffer from overcrowding and there will be fewer passenger services on the line than the public require and the market could sustain. Future Governments will be tempted to use price to control demand. Growth in rail freight will be stifled, leading to more lorries on the roads. Perhaps more significantly, the chance to reshape the national economy and boost growth in the north and the midlands will have been lost. This is an opportunity to show vision and commitment through a bold investment decision. It must be grasped.

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[David Mowat (Warrington South) (Con)]

I have been an MP for four years, and this is the fourth debate on HS2 in which I have participated. I have spoken in support of the project in all of them and I will do so again tonight, although it would be fair to say that if we were debating the current phase 2 route, which is out to consultation—I have high hopes of changes, particularly to the part north of Manchester, for which there is no business case—I would have difficulty supporting it, but I do support the Bill before us today.

Before I set out the reasons for my support, however, I will state four reasons why we should not go ahead with the project. We should not go ahead with it simply because it has been 120 years since we built a railway line north of Manchester. That, in itself, is a silly reason. We should not proceed with it simply because our infrastructure investment over the past two or three decades has been massively skewed towards London. I listened carefully to the hon. Member for Vauxhall (Kate Hoey), who talked about the diversion of resources away from other projects that HS2 could cause—an anxiety that did not appear to apply for Crossrail 1 or Crossrail 2, which together would cost about the same as HS2. In any event, we should not go ahead with the wrong project just because we previously spent too much in London. Nor should we do it because other countries done it more than we have: Turkey might have 1,500 miles, but perhaps the Turks and everyone else is wrong and perhaps our way is the right way.

We should proceed if and only if three things apply. The first is that the business case must be robust and solid.

[Andrew Bridgen]

It is not.

[David Mowat]

I have a sense of déjà vu. My hon. Friend the Member for North West Leicestershire (Andrew Bridgen) and I have had this dialogue before. The cost-benefit ratio is 2.4, higher than it was for the Jubilee line when that project started and higher than it currently is for Crossrail. We should go ahead only if the cash flow can be afforded without diverting resources away from other activities. Roughly speaking, the cash flow for HS2 is £2 billion a year, and it kicks in as Crossrail comes to an end and HS2 picks it up. That is reasonable. There is no evidence that HS2 is starving other projects and activities of investment. I believe that HS2 involves something in the order of 20% of total rail investment over the next two decades.

The third condition is that there must be transformational benefits from the project. We do not have time to go into them in detail, but there is a great deal of evidence, from the councils and the chambers of commerce of the north, that the regions will be transformed. Whether we are talking about the Greengauge 21 report or the Peat Marwick report, 40,000 jobs at a minimum will be generated in the north-west, and my constituents will get many of them.

All in all, whether HS2 goes ahead boils down to whether we believe that there is a capacity crunch. If we do not think that there will be one because we will all miraculously be using video conferencing over the next 10, 20, 30 or 40 years, it would probably be wrong to go ahead with the project. The fact is, however, that over the last 15 years, the requirement for long-distance train journeys in the UK has increased by roughly 5% a year. The HS2 business case assumes that that will decrease to 1.6% a year—a conservative estimate in many ways. I believe that the capacity crunch is the main reason for proceeding. My right hon. Friend the Member for Eddisbury (Mr O'Brien), who is not in his place, made a perfectly reasonable point about double-decker trains. My understanding is that the changes to the west coast main line to make that happen would be so restrictive as well as expensive that the line would not work in the meantime. We know how difficult it was during the last upgrade from Rugby to the north.

I want the Minister to give some thought to the reservation about phase 2 that I expressed earlier, which would have made it difficult—in fact, impossible—for me to support the Bill. I refer to the absurdity of building 40 miles of track north of Manchester apparently for no other reason than to get to a depot in Wigan. The cost is £1 billion without contingency, and I could find not one benefit in the business case that would contribute to that cost. I hope that people from HS2 are listening to me. There is a phrase, “value engineering”, which means that one engineers and designs where the value will come from. It has manifestly not occurred in respect of the Wigan link. I hope, believe and trust that that will be looked at.

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[Andrew Bridgen (North West Leicestershire) (Con)]

It is a great pleasure to follow the hon. Member for Huddersfield (Mr Sheerman), especially when I agree with so many of his remarks. I draw the attention of the House to my previous declaration: not only does phase 2 of HS2 bisect my beautiful constituency; it runs within 100 yards of my home.

Since the House debated and voted on the paving Bill for HS2 in June last year, many questions surrounding the project have been asked, but precious few have been answered. The Government are continuing to block the Major Projects Authority report on HS2, an issue raised by my right hon. Friend the Member for Chesham and Amersham (Mrs Gillan) and the hon. Member for North East Derbyshire (Natascha Engel). I raised this issue most recently with my right hon. Friend the Secretary of State in this place on 17 December 2013 only to be told that there was no need to publish the MPA report because there is no shortage of reports on HS2. That is true, but most of them are sponsored by the Government or HS2, and most of them have had their evidence totally discredited. The continued suppression of the MPA report on HS2 must be a great source of concern to hon. Members who should surely have all available evidence to hand, especially on a project of this cost and magnitude that will have such a huge impact on the lives of so many of our citizens.

Cost continues to be a running issue for HS2. We know from last year that the initial cost of £33 billion increased to more than £42 billion, with a further £7.5 billion cost for rolling stock. That is all in 2011 money, with no account taken for interest payable on borrowed money. Indeed, it could be considered that, with inflation, the cost is now well in excess of the £50 billion limit set by the shadow Chancellor to trigger opposition from Labour. As evidence from international rail projects suggests an average overspend of 45% and a lead time of 13 years adding to the cost of rolling stock, nothing has persuaded me that we could not well be looking at a sum of more than £70 billion or possibly £100 billion to see HS2 through.

Another question that we are struggling to get the answer to concerns evidence of overcrowding on the west coast main line and the capacity issue in general. On 6 January this year I received a response to my written question to the Department for Transport asking how many passengers in the previous year had used the line during peak periods between Euston and Birmingham and Euston and Manchester. I was directed to statistics that show rail passenger numbers on trains throughout the day in several major cities, as well as levels of peak crowding, but these are not available by route. It surprises me that the Government could not have made available the actual numbers on the west coast main line to demonstrate the case that this line is full. Again, the evasiveness and the lack of ready statistics to back up the case for HS2 fuels suspicions about the reasoning behind the whole project.

Then there is the issue of blight, which has been raised by many Members. The project is causing immense blight. It has been estimated that 240,000 homes are within 1 km of the proposed line and are likely to suffer losses that are mostly ineligible for compensation under the Government’s current policy.

[Gareth Johnson (Dartford) (Con)]

I am one of the few Members who has both a high-speed line and a high-speed station in my constituency. Although expensive for passengers to use, it has undoubtedly attracted inward investment without the kind of environmental impact that we once anticipated. Will my hon. Friend therefore concede that there can be positives from high-speed rail, and that that should not be overlooked?

[Andrew Bridgen]

I will concede that if we chuck £50 billion of taxpayers’ money at anything, some of it will stick to the wall and we will get some result from that, but we could argue about whether that is the best way of spending £50 billion.

I echo the thoughts of the HS2 Action Alliance on the Government’s most recent statement on property compensation. People may well go to their graves having been locked into homes made totally unsaleable by the HS2 route. Then there are the environmental questions. The initial 60-day consultation period for a 50,000-page environmental statement, the equivalent of 40 versions of “War and Peace”, raises questions, as does the Environmental Audit Committee report, which recently uncovered the fact that 40% of the route has yet even to be examined.

The evasiveness of the Government on this matter has not escaped the general public, and no amount of expensive Government-sponsored reports into supposed benefits will convince them. A ComRes poll last month found that 52% of Britons oppose the current plans to build HS2, whereas only about 30% support the project. This confirmed the trend from previous polls: there is a solid majority of the public opposed to HS2.

We have a Bill before us today which raises far more questions than it answers, and a case built around PR and spin rather than evidence and a foundation of fact—suppressed reports, hurried consultations and unanswered questions. This is not the way to spend more than £50 billion of taxpayers’ money. I therefore urge all right hon. and hon. Members to vote against the Bill and to support the amendment.

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[Lilian Greenwood (Nottingham South) (Lab)]

When the previous Government launched this project four years ago, the noble Lord Adonis said that Britain required transport networks that are high-capacity, efficient and sustainable. That statement remains true today. In the light of continued growth in passenger demand, a lack of resilience against severe weather, and a need for regionally balanced economic growth, the case for those networks is arguably more urgent than ever before.

Many Members have made the case for investment today, and not just for high-speed rail, which is precisely why Network Rail has been allocated more than £37 billion to spend on our existing railways over the next five years, including in the south-west.

The doubling of passenger numbers over the past 20 years has placed enormous demands on our existing infrastructure. The railways are carrying the same number of passengers as they did in the 1920s on a network half the size, and some sections are now reaching the limits of their capacity. As the hon. Members for Redditch (Karen Lumley), for Rugby (Mark Pawsey) and for Northampton South (Mr Binley) have said, nowhere is that more acutely felt than on the west coast main line between Birmingham and London. A vital passenger and freight route, it is the busiest and arguably the most complex rail line in Europe. It is notorious for its heavy gradients and large numbers of challenging bends and curves, many of which are now boxed in by housing developments. They have become a permanent legacy of the line’s original piecemeal construction and they continue to inhibit attempts to bring the west coast main line up to 21st-century standards.

Over the past 50 years, enormous investment has gone into electrification, the ingenuity of tilting trains and, most recently, a 10-year route modernisation programme, which cost the taxpayer at least £9 billion. Just a few years after its completion, we have exhausted nearly all the extra capacity that that £9 billion bought us. Network Rail has warned that by 2024 the line will effectively be full. The lack of capacity is not an abstract problem or a far-off dilemma for future generations to resolve; its effects are already being felt, because as demand for inter-city services increases, providing extra trains inevitably has an impact on commuter services. As hon. Members in the region know, the constraints are so severe that passengers in the west midlands are already at what Peter Parker, the late chairman of British Rail, once called the “crumbling edge of quality”.

If we look back at the timetable changes that took place in December 2008, we see that more services were put into London, but they were at the expense of local services. Journey times were slowed down and services withdrawn. To see this trend’s logical extreme, we need only travel 30 miles north of Birmingham, to the rural stations in Staffordshire that were closed during the west coast modernisation project, and now cannot be reopened, because the paths have been reassigned. The message is clear: we need more capacity. As my hon. Friend the Member for Stalybridge and Hyde (Jonathan Reynolds) said, HS2 is the plan to provide it.

Across the network, freight, commuter, and fast inter-city services all compete for a diminishing number of paths. Those limitations cause innumerable conflicts and compromises in timetables. I cannot agree with my hon. Friend the Member for Stoke-on-Trent South (Robert Flello) and the right hon. Member for Eddisbury (Mr O'Brien) who said that we should just enhance the existing line. A full upgrade would be enormously costly, and it would cause an unacceptable amount of disruption, leading to misery for passengers and enormous compensation payments to train operators. At the end of it, such a project would deliver less than half the capacity of a new line. That is why, when the previous Labour Government launched HS2, the need for more capacity was at the heart of their case. For a long time after the election, that message was lost. As the former Minister with responsibility for rail, the right hon. Member for Chelmsford (Mr Burns), later admitted, the Government should have concentrated more on the critical issue of capacity.

It was not just the Government’s arguments that showed alarming signs of drift. It took three years to produce this Bill, meaning that there is now no prospect of its receiving Royal Assent before the election. The initial consultation on compensation was found to be

“so unfair as to be unlawful,”

causing prolonged uncertainty for homeowners, tenants and businesses along the route. Not enough emphasis was placed on the regenerative potential of HS2, or the benefits it could bring to the existing rail network. More work needs to be done in this area, as my hon. Friend the Member for Liverpool, Riverside (Mrs Ellman), the Chair of the Transport Committee, set out. Some environmental information is incomplete and the words mitigation and compensation are used interchangeably by the Government when they mean very different things. There has been real confusion about plans for Euston station. Three times now, HS2 Ltd has made radically different proposals and local residents and businesses deserve better.

Perhaps most serious of all, costs seem to be spiralling out of control and that is why Labour forced the Government to introduce much tougher reporting of the spending through an amendment to the preparation Act, tabled by me and my hon. Friend the Member for Wakefield (Mary Creagh). We also amended the Bill to require better integration with existing transport networks and specific reporting of the jobs and skills generated in connection with the project. I am proud that even in opposition Labour has improved this project and ensured better value for taxpayers’ money.

With the appointment of Sir David Higgins, the Government are finally taking the delivery of the project seriously and Labour will continue to be a critical friend to HS2. We will subject the Bill to close line-by-line scrutiny and will keep up the pressure on the Government to bring down the cost of the project. As my hon. Friend the Member for Wakefield argued in her opening speech, the Higgins report concluded that substantial savings can be achieved if there is better leadership of the project and also sensibly recommended removing the proposed link with the north London line, which was always an inadequate compromise and satisfied no one.

We welcome the recommendation that there should be a new focus on the benefits that phase 2 of the project can bring through new connections between the great cities of the midlands and the north. As my hon. Friend the Member for Wythenshawe and Sale East (Mike Kane) noted, we have been operating without one central connection since much of the Great Central Railway disappeared. In my own city, part of it is under a tram line and part of it is under a shopping centre.

I know from experience just how poor the links are between Birmingham, the east midlands, the north-west and Leeds. As Members including my right hon. Friend the Member for Blackburn (Mr Straw), the hon. Members for Lancaster and Fleetwood (Eric Ollerenshaw) and for Calder Valley (Craig Whittaker), my hon. Friend the Member for Blackley and Broughton (Graham Stringer) and the hon. Members for Rossendale and Darwen (Jake Berry), for Pudsey (Stuart Andrew), for Cleethorpes (Martin Vickers) and for Skipton and Ripon (Julian Smith) all recognised, improving those connections will help to deliver sustainable, balanced growth and send the message that we are prepared to invest in 21st-century infrastructure for the midlands and the north, not just for London and the south-east.

It is worth emphasising that the Government have yet to respond to the consultation on the proposed route for phase 2. I know that some hon. Members have concerns about the impact of those proposals on their constituencies, including my hon. Friends the Members for Stoke-on-Trent South and for Stoke-on-Trent North (Joan Walley) and the hon. Members for Warrington South (David Mowat) and for Stafford (Jeremy Lefroy), but voting for the Bill today in no way sets in stone the route for phase 2. It is vital that submissions to that route consultation are considered on their merits and we look forward to the Government’s response.

[Andrew Bridgen]

I thank the hon. Lady for giving way. She quotes the noble Lord Adonis, but she does not quote the noble Lord Mandelson, who said that HS2 was merely a ploy for the last election drawn up on the back of an envelope, or the noble Lord Prescott, who calls HS2 the “great northern con”.

[Lilian Greenwood]

We will see who changes their mind, but I think that the case for our needing this railway has been clearly made.

When petitioners appear before the Committee to make their case for changes in mitigation, they need to know that they will receive a fair and impartial hearing. Unlike the Mayor of London, we do not dismiss genuine concerns about the environmental impact. The Bill has some way to go and I hope that the new Committee will hear evidence in the areas most affected by the construction, including Euston and the constituencies of my hon. Friend the Member for Hampstead and Kilburn (Glenda Jackson), the hon. Members for Lichfield (Michael Fabricant) and for North Warwickshire (Dan Byles), the right hon. Member for Meriden (Mrs Spelman), my hon. Friend the Member for Hayes and Harlington (John McDonnell), the right hon. Member for Chesham and Amersham (Mrs Gillan), my hon. Friend the Member for Hammersmith (Mr Slaughter) and the hon. Member for Ealing Central and Acton (Angie Bray).

Last month, I visited Birmingham to see the plans that the city council and Centro, the transport authority, put in place for HS2. My right hon. Friend the Member for Birmingham, Hodge Hill (Mr Byrne) described some of them. Anyone would be struck by the ambition of those plans, the number of jobs that will be created and the regeneration that will be achieved. Similar benefits should and can be achieved for both Euston and Old Oak Common.

The west midlands and the nation as a whole need this project to meet rail capacity challenges, but it can also deliver huge economic benefits and address the transport inequalities that continue to hold our regions back. HS2 represents a great opportunity for the whole country and I hope that hon. Members will support the principle of the Bill by giving it a Second Reading.