High Speed Rail (Preparation) Bill

Christopher Chope Excerpts

Thursday 31st October 2013 Commons Chamber

[Stephen Hammond]

I thank my right hon. Friend for that intervention. He is absolutely correct in his understanding; of course he would be, as he has so skilfully managed the Bill so far.

[Mr Christopher Chope (Christchurch) (Con)]

Will my hon. Friend give way?

[Stephen Hammond]

I am going to make some progress because I think that my hon. Friend is going to refer to amendment 20. If he waits for a moment I will deal with that.

We have always made it clear that HS2 will provide a significant opportunity for vocational skills across the lifetime of the project, giving a real boost to British industry. This Government are committed to raising skill levels and creating an environment for small and medium-sized enterprises to succeed. Amendment 26 would place an obligation on the Government to report on their progress in delivering those opportunities and to demonstrate what we mean when we say that HS2 is an engine for growth. I have always been convinced, as have many Members across the House, that we will be able to do that. HS2 is a generational scheme, and as such we need to make sure we have the right home-grown talent that allows us to deliver it. I am delighted that there is cross-party support for amendments 25 and 26, and I hope that the whole House will be able to support them.

[Mr Chope]

Will my hon. Friend turn his mind to amendment 30, which seeks to limit the amount of expenditure on preparatory works to £5 billion—a pretty substantial sum, but obviously not as large as £50 billion? Will the Government undertake not to spend more than £5 billion on preparatory works?

[Stephen Hammond]

I might be prepared to consider that. However, my hon. Friend needs to be absolutely clear that this is about the preparatory works on phases 1 and 2 as opposed to preparatory works for the whole scheme were it to go further and create a network. His amendment does not cover that, and that is why it is unnecessary.

--- Later in debate ---

[Stephen Hammond]

It is rare that I disagree with my right hon. Friend, but in this case I do. What this Bill does is explicitly place reporting obligations on the Government for the preparatory work. Moreover, it is the hybrid Bill, which my right hon. Friend has mentioned, that will provide the opportunity to scrutinise all stages and costs.

We have created the reporting duty precisely to ensure that Parliament can scrutinise the expenditure and see that we are spending it responsibly. Planned expenditure on design works for the financial year 2013-14 is about £2.5 million, and for 2014-15 it is about £9.2 million.

There are a number of other amendments in this group and I know that other Members want to get in. I sympathise with the spirit of amendment 8, but it does not clarify the exact level that most people recognise as the number of people employed by small and medium-sized enterprises. Moreover, it would restrict a small or medium-sized enterprise that had fewer employees, but that hoped to secure a high-value contract that would result in many UK jobs. The amendment goes beyond the direct nature of the contract.

[Mr Chope]

In commenting on the other amendments in this group, could the Minister address his remarks to amendment 31 and explain why the Government are not prepared to accept it?

[Stephen Hammond]

On amendment 31 and the transparency of the project, I do not believe it is necessary to produce six-monthly reports of spending estimates in addition to the annual reports to which we have already committed. Given what my right hon. Friend the Member for Chesham and Amersham has said, I am sure my hon. Friend the Member for Christchurch (Mr Chope) would not want us to waste money or create bureaucracy just to produce six-monthly reports. Such a requirement would be onerous on the Government.

[Mr Chope]

My amendment does not require reporting after the event, which is what the Bill says; it requires a budget to be set in advance, on an annual basis. Why cannot the Government accept that?

[Stephen Hammond]

The Government accept that we need to come to the House to explain our actions and report on our preparatory expenditure. As has been discussed extensively this afternoon, the initial target cost for phase 1 is £17.16 billion.

My right hon. Friend the Member for Chesham and Amersham has tabled amendments on the monitoring of tax avoidance and the payment of bonuses to those who work on High Speed 2. We must manage the costs, but we must balance that with ensuring that the staff reward arrangements attract the right talent. We need to ensure that those who work in the public sector demonstrate the highest standards of integrity and meet their tax obligations.

Following the review of the tax arrangements of public sector appointees last year by the Chief Secretary to the Treasury, all Departments and agencies have a duty to seek assurances about the tax arrangements of their long-term specialists and contractors to ensure that they are paying the right amount of tax. The Government are committed to tackling all forms of tax avoidance and have taken a wide range of measures to close tax loopholes.

It is essential that we guard against the payment of bonuses that are not in line with the Government’s goal of reducing the public sector remuneration package. However, we must ensure that we have the right reward structure in place. We must not put provisions in legislation that would tie the hands of the whole supply chain. I am happy to confirm to my right hon. Friend the Member for Chesham and Amersham that Sir David Higgins will move to High Speed 2 on the same salary that he received at Network Rail and that he has guaranteed that he will not accept any bonuses. I hope that that satisfies her.

I hope that the House will support amendments 25 and 26.