High Speed Rail (London – West Midlands) Bill

Andy McDonald Excerpts

Wednesday 23rd March 2016 Commons Chamber

[Mr Goodwill]

I thought I just said that this power is already available and therefore this is a superfluous new clause and we do not need it to give us these powers. I very much doubt Opposition Members will agree with my view that nationalisation of the railways is not the way forward, so stuck as they seem to be in the 1970s, but I hope I may have provided sufficient explanation as to why this power is not required.

We have given consideration to the other proposed new clauses and amendments. Although I understand the importance of some of the issues raised, I do not believe they belong in the Bill, as they have already been considered during the Select Committee process. To conclude, in order not to take up any more time than is necessary, I hope that right hon. and hon. Members will be able to support the inclusion of new clause 19 and amendment 15, but I urge them to not to press the other proposals, which I do not believe are required.

[Andy McDonald (Middlesbrough) (Lab)]

I am pleased to be able to contribute to this important debate and play a part in this Bill’s progress. We fully appreciate the importance of this vital piece of infrastructure and the benefits it will bring to our country for generations to come. It is not common to find such consensus in this House, but I am pleased that both the Government and the Opposition understand the need for this high-speed railway. HS2 was, of course, the brainchild of the previous Labour Government, but I readily acknowledge the work that the current Government have done in progressing the project. It is to be very much welcomed for the country that we have such consensus across the House on such important national infrastructure projects.

In that same vein, I shall discuss new clause 19, which stands in the name of the Minister, as well as in my name, those of some of his colleagues and that of my hon. Friend the Member for Nottingham South (Lilian Greenwood). It deals with vocational qualifications.

[Sir William Cash (Stone) (Con)]

Just in case it might be thought that there is not still entrenched opposition to these proposals, may I say, speaking not only for myself but for many of my colleagues and for people in Staffordshire, where we get no benefit from this scheme at all, given the damage it is doing to our countryside, that I wish to register opposition to this in its entirety?

[Andy McDonald]

I think I used the word “consensus” not “unanimity”. I sincerely thank the Minister for his constructive approach to this issue and for adding his name to mine by way of support. There is agreement across the House that both jobs and skills are a core part of the case for HS2, and I note that the recent Shaw report calls for much deeper strategic engagement of trade unions across the rail industry. Accordingly, may I take this opportunity to congratulate the Minister and HS2 Ltd for their positive engagement with the TUC in securing an agreement to make sure that trade unions, HS2 and its suppliers work together to maximise HS2’s economic and labour market potential?

[John Redwood (Wokingham) (Con)]

Is the hon. Gentleman at all worried about the possible job impact on the existing railway, because most of the passengers for this line are going to come from journeys that would otherwise have been made on existing trains? Presumably, there will therefore be a decline in fares, revenue and job opportunity on the existing railway.

[Andy McDonald]

The right hon. Gentleman misses the point: this is about having a positive impact on capacity issues. That is the singular and most important purpose of this development.

In the words of the magnificent Frances O’Grady:

“It is clear that trade union engagement is vital to ensuring that HS2 is delivered to time and to budget—and that it is delivered in a manner that reflects the best of socially responsible development.”

The agreement contains the commitment to pay the voluntary living wage—and the voluntary London living wage—and to offer a minimum number of apprenticeships and workforce skills development, among other things. The agreement is an excellent example of how industrial relations should be approached from the outset in projects of this magnitude, and indeed throughout the construction industry, and I hope that it can be the template for good practice throughout industry. The construction of such infrastructure projects places demands on a nation to provide the necessary skilled workforce, creating opportunities for people, and younger people in particular, to equip themselves with not just the vocational qualifications to assist in the construction of this railway, but the tools necessary to forge careers that will be of benefit to both themselves and the nation long after the completion of HS2. Labour Members welcome the fact that, following on from the success of the Kings Cross construction skills centre, a National College for High Speed Rail will be located both in Birmingham and Doncaster, providing specialist vocational training to the next generation of engineers working on HS2 and beyond. We also welcome the fact that HS2 Ltd will provide £4.1 million towards a Euston construction skills centre.

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

I, too, am sorry to break the cosy consensus of the two Front-Bench teams, who seem to be conspiring to spend possibly £100 billion of taxpayers’ money on what I believe to be a white elephant. Does the shadow Minister have no concern at all about supporting the Government on a major infrastructure project where the cost-benefit ratio is as low as £1.40 for every pound spent?

[Andy McDonald]

Let me clarify that this is not about a cosy consensus; it is about rigorous examination. There has been a forensic examination of this matter through a lengthy Select Committee and a Bill Committee. The hon. Gentleman is completely wrong about the cost-benefit ratio. The correct figure is 2.3:1.

[Andrew Bridgen]

rose—

[Andy McDonald]

I have already given way and I must now make some progress.

The Government estimate that as many as 2,000 apprenticeship opportunities will be created by HS2, and there will be about 25,000 people employed during its construction. That is welcomed by Members from all parts of the House. Because of the importance of the creation of vocational qualifications in connection with HS2’s construction, we feel it is appropriate that Parliament is given proper oversight on progress in this regard. That is why we tabled new clause 19, which will impose a duty on the Secretary of State to prepare an annual report on vocational qualifications obtained in each financial year in connection with HS2 construction. It seems to us to be eminently sensible for the Secretary of State to report annually on the progress of the creation of vocational qualifications, and I am grateful that the Government have accepted that the new clause should be part of the Bill.

[Iain Stewart (Milton Keynes South) (Con)]

I support the new clause. Will this annual report capture people gaining qualifications not only through HS2 Ltd and the key construction companies, but further up the supply chain?

[Andy McDonald]

The new clause is focused principally on HS2 Ltd, but the hon. Gentleman makes a very important point. I am sure the Minister and the Secretary of State are listening intently to him. The intention must be to embrace all those within the supply chain.

Amendment 15 would make a small change to clause 48. It simply seeks to insert a requirement that as and when the Secretary of State considers that there is an opportunity for regeneration or development, and land is to be acquired compulsorily for that purpose, regard be had to the relevant development plans that obtain in respect of that particular location. I am grateful that such a modest and reasonable amendment finds favour with the Government.

New clause 21 deals with financial reports. It would impose a duty on the Secretary of State to prepare an annual report on expenditure in each financial year. Each report would contain details of any overspend or underspend against the budget for such expenditure for the year, as well as the likely effect on the total budget.

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[Sir Simon Burns (Chelmsford) (Con)]

rose—

[Andy McDonald]

I will make some progress.

[Sir Simon Burns]

Come on!

[Andy McDonald]

No, I will crack on.

[Several hon. Members rose—]

[Andy McDonald]

I will give way in a moment.

According to the McNulty report, the fragmentation of our rail network has left us with an efficiency gap of between 30% and 40% compared with other European networks, which means that the money that should be used to address the cost of travel and to fund much needed investment is needlessly wasted.

[Sir Simon Burns]

I am very grateful to the hon. Gentleman for giving way. We had this litany from him, which was put just as eloquently, upstairs in Committee. I wish to ask him this: first, if the privatisation of the railways was such a disaster and disservice to the travelling public, why do we now have record levels of people using the railways; and, secondly, why did the last Labour Government not renationalise it during their 13 years in power?

[Andy McDonald]

I am happy to answer the right hon. Gentleman. It was because the last Labour Government put record investment into the railways and made it the safest railway in Europe. We were clearing up the mess of that botched privatisation of Railtrack, which cost people’s lives. We made the network safe.

We have been left with a ticketing system that is the most expensive and confusing in Europe. Indeed, commuter fares are up by a quarter since 2010, having risen three times faster than wage growth. What the public clearly do not accept is that private and many foreign state-owned companies receive subsidies from the UK taxpayer and make significant profits at the expense of rail passengers.

[Karen Lumley (Redditch) (Con)]

Will the hon. Gentleman give way on that?

[Andy McDonald]

I will carry on, because I know that people want to contribute to the debate.

In illustrating the benefits of publicly owned operators, one could hardly ask for a better example than the recent east coast main line. The last Labour Government took the important step of bringing that back into public operation after the private operator reneged on its obligations in 2009. East coast proved itself to be one of the most efficient operators, returning more than £1 billion to the taxpayer in premium payments as well as investing every penny of profit back into the service. In addition, fares were kept down in real terms in 2014 at a time when no privately run franchise took the same step. East coast had record passenger satisfaction and its engagement with the workforce was an unparalleled success.

[The Secretary of State for Transport (Mr Patrick McLoughlin)]

I am sure that the shadow Minister will welcome the new service that will be starting from Middlesbrough as a result of the Virgin franchise, which will serve his constituents and provide new trains.

[Andy McDonald]

Of course I welcome it; it would be churlish not to. Why would I not welcome that? It does not mean that the system is right, or, for goodness’ sake, that the trains are getting to the right places.

It is difficult to see how east coast’s brilliant delivery for the taxpayer and for the commuter could be seen as a failure, or in any way undesirable. It simply does not make any sense for the UK taxpayer to subsidise foreign state-owned companies so that citizens of Germany, Holland, France and elsewhere can enjoy cheaper and superior services.

Quite simply, the rejection of even the possibility of public ownership is driven by an outdated ideology and is totally out of kilter with the views of a large majority of the public—including many Conservative voters—which is why I am so pleased that Labour is committed to a publicly owned service that puts the passenger first rather than the profits of private or foreign state-owned companies, as is currently the case.

[John Redwood]

rose—

[Andy McDonald]

No, I am going to move on.

We have heard the Prime Minister, the Chancellor, the Secretary of State for Transport and others speak in glowing terms about how High Speed 2, when completed, will be a proud national achievement, and I completely agree with that. The scale of the project, the amount of talent that will be utilised in its design and construction, and the dedication over the years ahead will be a mark of pride, and represent a proud feat of British engineering and ingenuity.

It is my contention that if we, as a nation, are good enough to build a world-class high-speed railway, then we are good enough to run it, too. From the initial privatisation to the Government’s re-franchising of the east coast main line, Tory rail policy has always been far too focused on its “private good, public bad” ideology. However, new clause 20 would not require the sort of Damascene conversion that we witnessed from the right hon. Member for Chingford and Woodford Green (Mr Duncan Smith) earlier this week. It asks only that the Government keep an open mind. New clause 20 would allow, but not require, High Speed 2 passenger services to be run in the public sector. A similar clause was part of the Crossrail Act 2008, leaving open the option to run passenger services in the public sector. Indeed, we have worded this new clause so that it is as similar as possible to section 26 of the 2008 Act.

May I remind the Minister and the House that the Conservative party did not reject the idea of at least keeping an open mind about who might be the best operator to run Crossrail—or the Elizabeth line—in future years, and it would be disappointing to see the Conservative party move from a position of pragmatism to one of sheer ideology. It would be talking Britain down to suggest that private companies and the state-owned rail companies of the Netherlands, France and Germany are able to run successfully passenger services on our railways, but we ourselves are not. I hope that the Government do not have such a pessimistic view of our capabilities as a nation and will vote in favour of new clause 20.

[Mrs Cheryl Gillan (Chesham and Amersham) (Con)]

It was disheartening to hear the Minister dismiss my amendments in this group before hearing what I had to say, although I am grateful to him for acknowledging that over the past six years I have fought for my constituents and their rights and interests in the face of opposition from many people outside this House. My new clauses in this group are practical and sensible and will, I think, assist my constituents and others up and down the line.

New clause 1 is about local authority finance. Local authorities the length of the HS2 route have received no extra help to support their work on this major infrastructure project. The burden on my two local councils, Buckinghamshire County Council and Chiltern District Council, has been enormous, but the new clause would also apply to other councils.

Buckinghamshire County Council is naturally concerned that without central Government intervention and help its costs will continue to escalate. If the last six years are anything to go by, they certainly will. The county council’s outturn figure for 2015-16 is nearly £520,000 for costs relating to the legal petitioning process, engagement with HS2 Ltd and getting the best deal for Buckinghamshire residents. The council has just submitted the recharge to HS2 Ltd on the current memorandum of understanding and can recoup barely £10,000 for the last year. Why must taxpayers in Chesham and Amersham and elsewhere not only pay for this railway to be built, but pay again through their council tax for their local authorities to carry out inescapable pre and post-construction work for which they get very little help or none at all? Over the past six years, Chiltern District Council has spent nearly £1.18 million on complying with HS2 requirements —a huge amount for a district authority.

Councils have paid out literally millions in the past six years. The costs will only grow during the construction phase and there is no guarantee that local authorities will be fully recompensed. They would appreciate a clear, legally enforceable commitment from the Government that the extra burden will be recognised, particularly in the light of the local government finance settlement. My county, Buckinghamshire, was heavily affected by the settlement. It was only through myself and other Buckinghamshire MPs making very strong representations that we got some increased moneys for our local authorities. If accepted, new clause 1 would ensure security for our local authorities along the whole route where service agreements do not provide additional funding, received by the end of the year. The Minister should appreciate that I am asking for statutory and legally enforceable requirements because there is great distrust of the process so far. I think it is essential to enshrine the provision in statute, so that it is legally enforceable.

New clause 2 is designed to give statutory enforceability to the Department for Transport’s intention to reimburse local authorities for highways repair costs consequential on the construction of HS2.

--- Later in debate ---

[Mr Grieve]

I will be extremely brief on the issue of the adjudicator. I listened very carefully to what the hon. and learned Member for Holborn and St Pancras (Keir Starmer) said and I have great sympathy with all the points he makes. This is why I am bound to say that I find it so odd that the Government will not accept the creative idea of having an office of the HS2 adjudicator. The scale of the project makes it desirable to have an independent arbitration authority to resolve the inevitable disputes that will arise over the way in which the scheme is carried out. If I may say so to the Minister, I would have thought it very much in the Government’s interests to accept this idea; otherwise, the burden will inevitably fall on Members of Parliament whose constituencies are affected, and the House’s time will be taken up with constant arguments about how HS2 is not observing its obligations or carrying out the work in accordance with the intention it originally presented.

This is going to cause massive problems for the Minister and his Department and will probably clog up some of the House’s business time. It is all the more reason to have an independent adjudicator who is approachable exactly like an ombudsman and who can take on some of that burden and do it professionally and in a manner that reassures people and commands respect. I therefore strongly urge the Minister to accept new clause 8. It would be regrettable if the Government did not, because, as I say, an extra burden would fall on their shoulders as a result of the many problems that will inevitably arise during construction of the project.

[Andy McDonald]

I wish to speak to new clause 22 on the construction of an integrated station at Euston.

There have been many discussions and consultations between HS2 and Camden Borough Council about Euston, and the new clause draws on the assurances that HS2 gave to Camden. The thrust behind this long and technical new clause reflects the fact that the redevelopment of Euston presents an enormous opportunity to build something of real worth to accommodate not only the station to the west for HS2 phase 1 and all its works but the redevelopment of the mainline station, and to take into account the requirements of phase 1 and, in due course, phase 2, including in anticipation of Crossrail 2 in the fullness of time.

[Michael Fabricant]

The hon. Gentleman is right to talk about the integration between Crossrail and Euston and what might be possible at Euston, but does he agree that it is completely mad that HS2, which will be coming from the north, does not go to St Pancras or even connect with HS1 to enable people to travel to the continent?

[Andy McDonald]

That point has been raised several times. The intention, as expressed in the documents, is to have a pedestrian connection between them.

An overarching approach to an integrated station would not only take account of all the anticipated works but achieve the objectives of securing the best possible outcomes for the residents of Camden and minimising the enormous disruption they will undoubtedly suffer. Many properties will be demolished and other properties will be in extremely close proximity to the works; public open spaces will be lost; there will be fleets of heavy goods vehicles and commercial vehicles; and noise pollution will undoubtedly disrupt the peaceable enjoyment of many properties, including in places such as Cobourg Street, which is a tranquil community with a quiet courtyard at its heart, notwithstanding its close proximity to busy traffic and the railway station. Businesses in streets like Drummond Street will also be disturbed.

We are asking the good people of Camden to put up with a great deal and to make huge sacrifices for the benefit of the nation, and Labour has tried to do all it can, in new clause 22 and in Committee, to mitigate the impact on the quality of life for residents. We acknowledge the sincerity of the Minister and his colleagues in working to that objective, but we take the view that this is so important that the assurances given ought to be in the Bill and have the full force of law.

We seek to minimise the amount of excavated material and construction materials transported into and around the site by road and to have as much as possible moved by rail. Camden Council has developed a Euston area plan, and we propose that any designs for the enlarged Euston station take full cognisance of that plan and other such framework documents and relevant guidance. The assurances talk of various boards, including the Euston strategic board, the Euston station strategic redevelopment board and the Euston integrated programme board, which bring together a number of prescribed partners. We seek to ensure that the nominated undertaker—the relevant body carrying out the HS2 works—is obliged to participate in those boards, as the assurances given by HS2 so describe.

[Geoffrey Clifton-Brown]

Does the hon. Gentleman agree that if Euston station were holistically designed and developed, it would provide a huge opportunity for regeneration in the Euston area and produce a lot of good quality local affordable housing to replace some of the affordable housing that will be devastated by HS2?

[Andy McDonald]

I agree entirely with the hon. Gentleman’s intervention. That is the thrust of our new clause, which I trust he will support. It stipulates that the redevelopment board will advise the Secretary of State on the delivery of an “integrated and comprehensive design” for the enlarged Euston station, and it is for the integrated programme board to make sure that the designs and construction plans for Euston fit with proposals for other Euston schemes.

Access is a real issue, so while the construction is under way, which it will be for many years, we want to ensure that pedestrians and cyclists have continuous access through the site, east to west and north to south, insofar as it is “reasonably practicable” to do so. A design panel will work to ensure that the relevant partners can agree an appropriate design. Whoever is appointed for these purposes by HS2 will be obliged to work with that panel to ensure full buy-in to the design. Indeed, there will be an obligation on the nominated undertaker to take proper notice of the recommendations made by the design panel, and if for some reason the nominated undertaker does not follow those recommendations, our new clause states that it will be required to explain why that is so. The new clause makes sure that the community is properly engaged throughout the construction works at Euston so that its concerns will be recognised and its voice heard.

The provision is even more important, given today’s publication of the Parliamentary and Health Service Ombudsman’s report on a complaint about HS2. It effectively concludes that there are fundamental problems with the way HS2 Ltd communicates with the residents affected by their plans and the way it handles complaints.

The report dealt with specific complaints, but it is worrying that the Chairman of the Public Administration and Constitutional Affairs Committee has said:

“There is still a culture of defensive communication and misinformation within this public body and that is not acceptable. Unless those responsible for delivering HS2 understand that first and foremost they serve the public, they will continue to be criticised for having complete disregard for the people, some of them vulnerable, who are impacted by this large-scale infrastructure project.”

[Mr Jim Cunningham (Coventry South) (Lab)]

rose—

[Andy McDonald]

If my hon. Friend would not mind, I am conscious of my time drifting away.

The Chairman continued:

“We expect HS2 Ltd to prioritise its response to Ian Bynoe’s forthcoming recommendations on communication and engagement and on complaint handling. This is a matter of primary importance for HS2 Ltd, and must be treated as such.”

I trust that the Minister will take on board the criticisms of the Committee and make sure that any necessary cultural and other changes are made so that there is no such repetition. I urge him further to consider, even at this late stage, accepting our representations in the context of this new clause.

The new clause also provides that when the Secretary of State sets out the Government’s periodic railway investment plans, in what we have come to term “control periods”, he or she should set out the costs of and funding for the anticipated works in the planning period before the works start and during the control period in which the works will fall.

Yes, previous infrastructure projects have had similar assurances woven into them and they have been observed, but this is such a huge infrastructural undertaking, the likes of which has never been done before in such a manner, on such a scale or over such a lengthy period of time. We believe that the people of Camden need to have more than just the assurances that have been given. On this occasion, we believe that we have to take the extra step of working those assurances directly into the Bill.

The Minister will not need me to remind him that throughout the Public Bill Committee Labour tabled a number of amendments and new clauses that pressed the Government to justify the inclusion of wide-ranging blanket powers granted to the Secretary of State for the purposes of the construction and operation of HS2. Each time the Minister responded by resisting our attempt to curtail the scope of the Secretary of State’s powers on the basis that the Government was taking a “belt and braces” approach so as to be absolutely sure. I am now therefore asking for the loan of his belt and braces— not to protect my dignity, but to protect the people of Camden.

I do not intend to impugn the sincerity of HS2 Ltd or of the Minister, and he knows that. In the light of the comments from the Public Administration and Constitutional Affairs Committee and the special set of circumstances that apply, we firmly believe that these provisions need to be enshrined in statute. I shall test the will of the House on new clause 22 by putting it to the vote.

[Mrs Caroline Spelman (Meriden) (Con)]

I have tabled some fresh amendments that are designed to help colleagues whose constituencies are along the line of route. In particular I shall highlight the important issue of the adjudicator, and I shall support my right hon. Friend the Member for Chesham and Amersham (Mrs Gillan) on new clause 7. I want to impress on the Government that when I was Secretary of State for Environment, Food and Rural Affairs and published the “Natural Environment” White Paper, it was made clear that the objective was for a net positive outcome from offsetting. That is more ambitious than no net loss, and it can be achieved by, for example, combining offsets and regenerating degraded land such as the Tame river valley on the east of Birmingham, where the spur to Birmingham station will be built.