High Speed Rail

Dan Byles Excerpts

Monday 20th December 2010 Commons Chamber

[Mr Hammond]

I will start with the good bits. I thank the hon. Lady for what I think was her support for the next stage of the process—going through the consultation and introducing a Bill later in this Parliament, if that is what we decide as a result of the consultation. I am also happy to pay tribute, as she did, to the work of my immediate predecessor in developing the case for high-speed rail, although it is worth noting that not all his predecessors seemed to have been quite so committed to the project.

I am afraid that it is the hon. Lady who lacks credibility, in talking about our failure to invest in the railway. She can talk about a decade of Labour investment as much as she likes. What most people will have noticed is a decade of driving us towards the brink of bankruptcy. What we have done is salvage a substantial programme of investment in rail infrastructure—a programme the scale of which neither she nor many commentators outside this place predicted we would be able to continue with—in the context of the extreme fiscal constraints that we face. We have gone ahead with Crossrail and Thameslink, and with a programme of additional rail vehicles—gone ahead with, not merely announced unfunded promises, which is her legacy. We will go ahead with the inter-city express programme, as I have already announced. We will announce to Parliament the details of that programme, along with the electrification associated with it, in the new year. The hon. Lady can go on all she likes about proposing £17 billion of additional investment. Her party has no economic plan, no policies and no credibility.

Turning to the specifics of the hon. Lady’s response, the high-speed rail investment that we are proposing will be approximately £2 billion a year over a period of 16 years. That is roughly what we are spending now on Thameslink and Crossrail, so large infrastructure projects can be funded while the investment in the mainstream main line railway is funded as it is now.

The hon. Lady asked about our commitment to high speed rail as a means of addressing the north-south divide, and she reeled off a string of tried and failed mechanisms for addressing that persistent problem. We have decided to take a new approach to closing the gap between economic growth rates in the north and south, and the experience of other countries suggests that investment in strategic infrastructure is the best way to deliver that outcome.

The hon. Lady asked whether the change of route and the exceptional hardship scheme will impact on the £750 million that has been set aside for HS 2 during this Parliament, and the answer to that is no. She also asked whether there would be an impact on other rail schemes’ budgets, and the answer is again no. The HS 2 budget is ring-fenced; other rail schemes are typically funded through Network Rail and through support to train operators.

The hon. Lady asked about the compensation scheme. I have indicated that we will seek to go further than has happened with previous such infrastructure schemes in the UK, because it is right and proper that individuals who suffer serious financial loss in the national interest should be compensated. She also asked whether we will be setting a precedent in that regard. She should be aware that developing European jurisprudence in the area of property rights and the need for Governments to compensate is pointing towards more generous compensation becoming the norm, and I suspect that that will be the case for future projects.

On construction costs, yes, we are of course anxious to get such costs down to something closer to European norms. The hon. Lady will know that Sir Roy McNulty is carrying out a review, one element of which relates to the cost of UK rail construction, and Infrastructure UK is also engaged in that issue. A report will be published in April. She asked whether the cost of the trains is included in the total figure, and I can confirm that it is.

The hon. Lady also asked about the assumption with regard to ticketing and to the prices of tickets. I can tell her that the business case modelling assumes the same ticket pricing structures as those that are now in place on the west coast main line. In practice, however, the west coast main line and High Speed 2 will be in competition with each other. The operator of High Speed 2 will have a very large number of seats to fill, and we anticipate that the processes of competition in the marketplace will create opportunities for passengers who are prepared to buy advance tickets and to shop on the internet to get bargains for travel between London, the midlands and the north.

Finally, the hon. Lady asked about the strength of our commitment to going beyond Birmingham. With respect, when her party was in government, its position was always focused on a line from London to Birmingham. It was us who took the debate beyond Birmingham and made the case for Manchester and Leeds. Indeed, the business case for this railway, for the connection to Heathrow airport and for the connection to HS 1 depends on a railway that forms a complete network linking Britain’s four principal population centres, so I can assure her of that commitment.

I put it to the hon. Lady, however, that if we had sought to carry out the detailed work required for a hybrid Bill that covered the entire route, including the legs to Manchester and Leeds, it is unlikely that we would have been able to introduce such a Bill until the end of this Parliament. Our decision was therefore to introduce a hybrid Bill to deal with the London to Birmingham section—which is already a massive undertaking—in 2013, and that, while that Bill is going through Parliament, we should continue our detailed work on the legs to Manchester and Leeds, so that they can be included in a further hybrid Bill in the next Parliament.

[Dan Byles (North Warwickshire) (Con)]

The Secretary of State kindly visited my constituency to investigate the impact of the route there. He will recall that he himself noted how high it would be. There would be large gantries and viaducts crossing motorways. At the time, he said that he would ask HS2 Ltd whether it could do anything to mitigate the impact. He did not mention North Warwickshire in his statement; is he able to give people in the area any good news?

[Mr Hammond]

I think that my hon. Friend is referring to the point at which the railway will cross the M6 at Coleshill. At my request, HS 2 looked into whether it was possible to build under the motorway, but I am afraid that that is not technically possible. HS 2 has managed to reduce the height of the proposed flyover by a modest amount, but I am afraid that it will still be quite high at Coleshill.