High Speed 2 (Compensation)

Caroline Spelman Excerpts

Tuesday 21st October 2014 Commons Chamber

[Mrs Gillan]

I thank my hon. Friend. I glad to see that the Chairman of the Committee, my hon. Friend the Member for Poole (Mr Syms), is in his place. I note that there are many hon. Members here tonight, and I welcome those who have just come into the Chamber. It is important to put these points to the Minister in as forceful a way as possible.

The home owner payment scheme proposes to give home owner payments to those living between 120 metres and 300 metres from the line. This once again limits compensation by distance from the line. It also does little to assist the functionality of the property market in affected areas. The payments on offer are too low and, as the effect of inflation is not considered, they might be inaccurate as well.

Like other colleagues, I have many farmers and landowners in my constituency, and none of the schemes properly addresses the impact of HS2 on them. I deal with a number of organisations, including the Country Land and Business Association and the National Farmers Union, that are campaigning hard to ensure that affected landowners receive fair and timely compensation, and I hope the Minister understands the special problems facing farmers and growers. He is a farmer himself, so I am hoping for that special understanding.

[Mrs Caroline Spelman (Meriden) (Con)]

I am sure my right hon. Friend is aware that for many farmers the difficulty is that they are compensated at agricultural prices, but where land is taken beyond the actual requirements for the track, there is of course speculative value in that land, and does she agree that it is important that land-take is kept to a minimum?

[Mrs Gillan]

My right hon. Friend makes a valid point and I entirely agree.

Concern has also been expressed to me by colleagues, and, indeed, Mr Speaker, about the fact that compensation has only currently been offered to owner-occupiers. Owners of second homes or those living in social housing receive no recompense, in spite of having to endure years of disruption and intrusion in an identical fashion to homeowners. If HS2 goes ahead, I would like to see four main changes on compensation and a greater safeguard for those affected.

First, I and many others have always supported the introduction of a property bond scheme, as proposed by HS2 Action Alliance, where the Government act as a purchaser of last resort, and whereby buyers have the confidence to buy properties on the open market at unblighted prices. I believe this scheme would provide greater functionality of blighted property markets, and a better deal for all constituents.

PricewaterhouseCoopers’ March 2014 report on a potential property bond scheme concluded that it was a fair option, assuming it has a generous boundary. Regrettably, there has been a continual reluctance to adopt this option by Ministers, in spite of widespread backing. The Department for Transport has rejected this scheme in the past because of “money risks”. However, figures from PwC demonstrate that the figures are not prohibitive, and given the clear benefits of this scheme in terms of supporting normal market activity, I would ask the Minister to reconsider this scheme carefully once again and recognise its obvious advantages for both the market and those affected.

Secondly, the “need to sell” scheme needs revising to remove the financial hardship criteria to allow those who are unable to sell their properties because of HS2 to be free to move. Thirdly, the boundaries of the voluntary purchase scheme should be widened to a distance greater than the 120 metres, reflecting the true levels of blight and to match the payments actually made under HS1.

Fourthly, the whole compensation package should take into proper account blight in urban areas, over tunnels, and those who will suffer extensive construction disruption. In particular, the Treasury should reconsider once again the possibility of introducing stamp duty exemptions for affected properties to re-stimulate the property market.

Finally, if this project ever reaches its construction phase it will cause blight and disruption still to be identified. I believe that to protect my constituents, and all our constituents who are affected by HS2, we need an additional safeguard. I propose that the construction code should be added to the Bill in order to implement a binding and comprehensive duty of care that sets standards and time scales for the conduct of HS2, its contractors and sub-contractors during construction. An independent ombudsman should be appointed to adjudicate swiftly on abuses and with powers to compensate those adversely affected.

The current £50 billion budget for HS2 is currently being paid by the taxpayer, but it is also being paid at the expense of those who will suffer as a result of this project. Government have a duty of care to ensure that those blighted by this highly disruptive infrastructure project are fully and appropriately compensated. A failure to do so is not only insulting, but also sets a worrying precedent for inadequate mitigation for future schemes.

The Minister will have noticed tonight that I speak not just for my own constituency, but for many others, and I urge him to listen to our electors and do the decent thing by people whose lives have been turned upside down by this risky, poorly managed and ill-conceived project.

To borrow, and slightly change, the words from “Macbeth”, “If it were done when ‘tis done, then ‘twere well it were done properly.”