Rail Investment

Chris White Excerpts

Thursday 17th February 2011 Westminster Hall

[Chris White (Warwick and Leamington) (Con)]

I add my congratulations to the Select Committee on Transport on its most excellent report. If I may say so, however, there is one area of the report that could have done with strengthening a bit—high-speed rail. I have already made my position clear: I do not support High Speed 2. As the report makes clear, the estimated cost of the London-west midlands line is about £11 billion, with the total cost rising to £69 billion for a full 1,500-mile network. High-speed rail is therefore a major part of the long-term investment in our railways, and I believe that it should be heavily scrutinised before we commit so much public money to it. I appreciate that the report mentions some of the arguments surrounding high-speed rail, but I believe that more time should have been given to it and it should have been studied in greater depth, given the potential cost to the country over the long term.

Given that in 2007 the Department for Transport broadly accepted the Eddington transport study, which concluded that high-speed-rail would be poor value for money in the UK, it is incumbent on Parliament to ask what has changed so much in the space of the last three years to reverse that conclusion.

[Mrs Villiers]

Apart from anything else, there has been a change of Government. We are taking a forward-looking approach, so as to address the transport needs of our country over the next century. We have to make this upgrade to deal with the massive growth of future years. It is the best way to deliver it in a sustainable way.

[Chris White]

I thank my right hon. Friend for her comments.

If I may pursue my argument further, there are still some questions to be asked—such as whether the assumption of background growth in demand of 133% is truly realistic; such as whether potential competition from conventional rail has been taken into consideration when calculating the returns to be generated by this investment; such as whether new developments in technology, including video conferencing, online communication and information sharing, will seriously reduce the need for travel.

Large countries such as China are considering whether there are clear benefits to high-speed rail. A report by The Economist only two weeks ago entitled “On the wrong track” highlighted the fact that many of the newly added lines are making hefty losses and are thought to be operating at under half capacity. The Chinese Academy of Sciences has asked the Chinese Government to reconsider the case for investment in high-speed rail.

[Paul Maynard]

Does my hon. Friend agree that there is a crucial difference in that we have freedom of movement, but China does not, which slightly adjusts market demand?

[Chris White]

I agree with that specific point. However, if China, which has an economy twice the size of ours, is considering whether high-speed rail gives value for money, despite the point made by hon. Friend we should think again.

As the Eddington transport study highlighted, it is not that Britain’s transport system is not quick enough, but rather that it is extremely dense and we need greater investment in capacity.

[Mr Tom Harris]

The hon. Gentleman advocates that we follow China’s example on high-speed rail. I presume that he is aware that when the Chinese want to build a high-speed line they demolish houses that get in the way. Planning arrangements there are rather less democratic than ours. I would be wary about following that example.

[Chris White]

Those last two interventions show the similarities and differences in how our two countries operate.

The Committee says that we are reaching full capacity and that we need to put extra capacity in place, and I respect that. However, high-speed rail is not the only answer, and I believe that that should be investigated. The Department for Transport’s report on alternatives to high-speed rail, rail package 2, was able to deliver the necessary capacity improvements at a superior rate of return, and it was costed at a mere £2 billion. We should be considering all these options rather than deciding on large-scale prestige projects. Further areas of concern could be highlighted, such as the potential economic disadvantage that may be caused to other areas of the country that do not have access to the high-speed network.

As I said, I am grateful that the Committee chose to consider the matter, and I believe that it will provide a platform for real debate on our rail investment priorities over the coming years. I hope that everyone will engage in it fully.

[Julie Hilling]

I keep hearing that there are alternatives. I wonder what alternative there is for land-based travel from Scotland and the north of England to London if it is not high-speed rail.

[Chris White]

I had come to the end of my speech, but I shall answer the hon. Lady’s question. We have heard much about north-south and east-west, but I have to admit that I am quite parochial about the matter. I am from the south midlands, and I believe that there are different options. We have good services now; what we need is greater capacity.