HS2 Update

Andy McDonald Excerpts

Monday 17th July 2017 Commons Chamber

[Andy McDonald (Middlesbrough) (Lab)]

May I thank the Secretary of State for advance sight of his statement? I also thank you, Mr Speaker, for hearing the point of order made earlier today by my right hon. Friend the Member for Doncaster North (Edward Miliband) about what could be done to encourage the Secretary of State to better inform the House of the crucial decisions that he has reached on one of the most significant and costly pieces of transport infrastructure that this country has proposed for many a year.

Perhaps the Secretary of State will be kind enough to explain what happened earlier today, given the widespread trailing of an oral statement on the anticipated announcement and the House’s subsequent disappointment at initially being asked to settle for a written statement, until such time as the outcry seemingly reached the Transport Secretary’s ears and his somewhat belated appearance in the Chamber tonight.

Labour has consistently supported HS2 and the attendant benefits it will bring—indeed, we were its initial proposer in 2009—but that support brings with it many questions. On the construction, there are concerns that companies selected to do the work were previously involved in the practice of blacklisting workers.What assurances can the Secretary of State give that no such practices will be tolerated in the delivery of HS2? Far too often in the case of significant projects in recent times, overseas contractors—and several have been awarded contracts here—have brought in their own labour, and have recruited exclusively from jurisdictions outside the United Kingdom. HS2 clearly represents huge employment and career opportunities for apprentices and established workers alike. Can the Secretary of State guarantee that the practices we have seen in the construction industry that have excluded British workers from UK projects will not be allowed to obtain in the construction of HS2?

There are also concerns about the financial health of Carillion. What measures has the Secretary of State put in place to ensure that any financial instability of any of the contractors will not delay or add to the cost of the project? He said in evidence to the Treasury Committee that it was not his job to monitor conflicts of interest in the delivery of HS2, but given the revelations of the revolving door between HS2 and the engineering firm CH2M, does he accept that he does, in fact, have such an obligation if the public are to have confidence in the arrangements between HS2 and the contractors?

What assurances and guarantees can the Secretary of State give that the total overall cost will not exceed the stated £55.7 billion, and will not spiral, as has been alleged in certain quarters? In one of the many documents published today, we are told that in adopting the M18 route in south Yorkshire, although HS2 Ltd has included in the costs estimate the delivery of a junction north of Sheffield and back to the HS2 main line, it has not costed electrification of the midland main line between Clay Cross and Sheffield Midland, or from Sheffield to the north. Does the Secretary of State intend the line to be electrified in readiness for HS2—and if so, when—or is he working on the basis that trains to Sheffield will be bimodal, and the line will remain unelectrified?

Will the Secretary of State provide further and better particulars of his proposals and preferences in respect of potential parkway stations? Will he also provide an update on the progress of the northern east-west rail and the extension to the north-east—“Crossrail for the north”—and its connection with HS2, and on what discussions he has had with Transport for the North in that regard? Finally, will he reassure the House that his announcement about progress on HS2 will not be followed by an announcement of yet further delays to electrification of the trans-Pennine route?

[Chris Grayling]

I am grateful to the hon. Member for Middlesbrough (Andy McDonald) for the Opposition’s continued support for the HS2 project. I hope that we shall be able to work on it together. I think that the House, or a large proportion of it, is united in believing that the project is necessary to the economic development of the future.

As I said a moment ago, I am very pleased to be here now. I should have preferred to be here earlier, but, as I said, it is sometimes a case of cock-up rather than conspiracy.

Let me begin by saying something about the construction contracts. We have contracted a range of significant British companies as part of the awarding of contracts today. A range of consortiums is participating, and many of them are already an integral part of Crossrail, which is our biggest engineering project—and the biggest in Europe. We have a good team of UK and international organisations that are used to working as a team to deliver big infrastructure projects. However, the assurance that I give the hon. Gentleman and the House is that, as I have made clear all along, the companies that win contracts for HS2—whether construction, design or, ultimately, rolling stock contracts—will be obliged to make a commitment to leave a lasting skills footprint. That means apprenticeship programmes and skills development, and I think the two high-speed college campuses that we have established in Birmingham and Doncaster will help to develop real expertise for the future.

The hon. Gentleman talked about Carillion. Carillion is a big UK construction business which is clearly going through a troubled time, and we all hope that it will pull through, because we want to see British business succeed. However, I can tell him that Carillion is part of a consortium in which all the organisations involved have committed to delivering their part of the contract, and I am confident that whatever the position in respect of Carillion, that consortium will deliver the results that we expect.

The hon. Gentleman talked about conflicts of interest and CH2M. As he is aware, it pulled out of that particular contract. I have every intention of ensuring that we have proper behaviour by companies in future; they will be unable to continue to work for us if they do not do the right thing.

The hon. Gentleman asked about the total cost of the project. Over the past 24 hours there have been some wild rumours about the cost, based on people who are not involved in the project putting a finger in the air. I simply remind the House that it is incredible, inconceivable and simply nonsense to suggest that HS2 will cost five times the amount of HS1 per mile. This project has a total cost attached of £55.7 billion. It is currently on time and on budget, and I expect it to stay that way. In this country we have experience of major projects, such as Crossrail and the Olympics, and we have been pretty good at delivering on time and on budget. I am sure that we will carry on doing so.

The hon. Gentleman asked about electrification of the M18 route. I can confirm that the route from Sheffield Midland north to Leeds will also be electrified to ensure that through services can run to Leeds. That link is also an important part of northern powerhouse rail. On parkways stations, work is continuing to look at the best options. With regard to the whole northern powerhouse rail project, I am waiting for Transport for the North to bring forward its proposals. With regard to trans-Pennine modernisation, nothing has changed.