Economic Case for HS2 (Economic Affairs Committee Report)

Baroness Randerson Excerpts

Wednesday 16th September 2015 Lords Chamber

[Baroness Randerson (LD)]

My Lords, on these Benches, as my noble friend Lord Greaves indicated, our instincts are in support of HS2. Our allies include the leaders of our great northern cities, because they know what is good for their area. From the start, as my noble friend Lady Kramer indicated, we have supported the concept of HS2. Far too few major long-term infrastructure projects were planned by the Governments of the latter part of the 20th century and the early 21st century, so the Labour Government’s 2010 Command Paper setting out the strategic case for HS2 was welcome.

We are convinced of the need for additional capacity. It is important to recognise that the term “capacity” means two things here: it means seats on trains and it means train slots. Although various remedial actions can increase the number of seats on the train—having an extra carriage and so on—we are getting to the point where there are simply no more train slots. One issue that has not been aired much in this debate is that of freight. As the noble Lord, Lord Berkeley, indicated, freight transport is going to double in the next 20 years and there is simply not space for it on the existing railway.

Therefore, if we are to build at all, we need to be ambitious. We also need to learn the lessons of the past. Rarely in this country have Governments overestimated future demand for any infrastructure improvements. Reference has already been made to the Borders Railway, which opened only last week in Scotland and already appears to have a problem of capacity. The operators are already looking at putting on longer trains, given that only a single-track railway was built, making it impossible, or possible only at the margin, to increase the number of trains.

The travelling population of this country is bound to grow. We know that. The population is increasing and despite the predictions over many years that we shall all work increasingly from home—as indeed we do—in practice business use of trains has increased dramatically. We are social animals. We need to go and see our customers and so on. Also, leisure travel is for ever on the increase. Since 1997 train usage has doubled, as we recently heard in a report.

For economic reasons, on these Benches we support HS2. We do so for environmental reasons, too. Recent levels of air pollution near our roads have surprised the Government and local councils and they have led to EU penalties. That has to be addressed. Levels of congestion in our towns and cities and on our motorways make trains an attractive alternative. As a party that puts the environment at the top of its agenda, we particularly welcome HS2 because its speed and long-distance nature make it a real alternative to domestic air travel.

We are not deterred in principle by a high price tag, since the investment is very long term. We certainly do not believe that the capacity issues can be solved by improving existing lines. That cannot produce the capacity that we already require without immense disruption over decades for the travelling public; the impact on businesses would also be massive. There can, of course, still be incremental increases while HS2 is being built, but that does not take away from the need for HS2. We are, therefore, HS2 supporters, but we are critical friends.

I thank the Economic Affairs Committee for its report because, although I do not regard some of its criticisms as valid or necessarily relevant, there are a number of good questions that the Government need to answer. The first relates to the need for an overall transport master plan. We have the plan for a northern powerhouse, but the Government need to persuade us that HS2 will be part of that co-ordinated approach and will fit in properly with that plan. It is also important that account be taken of the impact of HS2 on north Wales and Scotland as well as on the north of England.

On cost estimates, with electrification plans on hold the Government are not in a very happy place. I have three observations. First, the cost of HS2 must not be allowed to swallow up investment, driving out other investment. This has to be used to enhance our network overall. Secondly, much of the cost is associated with the plans for Euston station. The alternatives to which the noble Lord, Lord Berkeley, referred, which were circulated to many of us, would allow significantly less costly investment there. The changes would also be much less disruptive and much quicker to build. We need to build this line as quickly as possible. As my noble friend Lady Kramer said, we are already late to the game in comparison with other countries.

Thirdly, speed costs money. HS2 is planned to achieve 360 kilometres per hour. It is estimated that if it were to be built to achieve 300 kilometres per hour, which compares well internationally, that would save 50% of the cost on trains. Given that in practice 360 kilometres per hour cannot be reached over quite a lot of the journey because of tunnels and stations, is the significant extra cost worth while?

I urge the Government to reconsider the issue of rolling-stock gauge. The plan to use continental-gauge rolling stock is expensive and restrictive because that can only be used from Euston to Birmingham. Classic, compatible rolling stock is much more flexible. It makes the whole scheme much cheaper and it would bring the benefits more quickly to a wider part of the country.

On the issues relating to Euston station, if one looks at the overall rail network, one can see that Old Oak Common will be very well connected as a hub because of Crossrail and so on. Many passengers will want to get on and alight there; one therefore wants to consider whether the impact on Euston in terms of passenger numbers has been accurately assessed. Are the Government satisfied that they have fully considered the alternative plans for Euston? If they have not had a chance yet, will they provide an assurance that they will do so?

In conclusion, I fully accept that any big project will always have objectors—those opposed in principle and those opposed to the detail. Sometimes those opposed in principle dress up their arguments as opposition to the detail. Two weeks ago, I visited the railway museum in Swindon, where I saw records on display of the vociferous opposition to the Great Western Railway, including its route. By the way, it took Brunel only two weeks to survey and choose the route—in your dreams, nowadays. There was also opposition in principle from those who thought that the railway was new-fangled and unnecessary. That struck a strong chord. Nowadays, we look back and admire the vision and ambition of Brunel and his backers. I say to the Government that we are pleased that they continue to adhere to the ambitious aims for HS2 espoused by the coalition but ask them to reassure us that the public purse will be spending its money wisely.