A11 (Dualling)

Elizabeth Truss Excerpts

Tuesday 27th July 2010 Westminster Hall

[Elizabeth Truss (South West Norfolk) (Con)]

I am delighted that my hon. Friend the Member for West Suffolk (Matthew Hancock) has secured today’s debate. This issue more than any other is a priority for the people of South West Norfolk; for too long, they have struggled with a difficult situation, given that the road is one of the main thoroughfares into my constituency. The matter should be given serious consideration by Ministers in advance of this autumn’s comprehensive spending review. The scheme is long overdue, and it is particularly pressing given the need to generate growth in our economy and to ensure that Britain races ahead.

I wish to talk about three things: first, Norfolk’s infrastructure deficit; secondly, specific effects of the problem on the town of Thetford; and, thirdly, the wider benefits that the scheme would deliver to our economy.

Although the United Kingdom is the world’s sixth richest country, it is 34th in the world infrastructure league table. However, Norfolk would rate far behind that. It is the largest county in England not to have a dual carriageway linking to the national trunk road network. We are the only county not to have been included in BT’s plans for super-fast broadband. We do not have the train speeds or railway connections that a county with the economic potential of Norfolk truly deserves.

Of the missed opportunities to improve infrastructure over the past 13 years, the grossest error was the failure to dual the final stretch of the A11, which I put down to mis-prioritisation by the now defunct regional authorities. They decided that the A11 had a lower priority than other schemes that had a far lower economic benefit.

The scheme is readily supported by local businesses. For instance, Jo Pearson of Pearsons (Thetford) Ltd said:

“Thetford, Norwich and the whole of Norfolk, for too long now has been the poor relation; the difference this upgrade will make in economic prosperity and jobs is immeasurable. We have heard all the talk time and again; this project must be not at the top of the ‘to do’ list but a distant memory in the completed pile!!”

People in Thetford and elsewhere in Norfolk are fed up with being told that the project will happen only to find that the digging has not started. I and my colleagues want to see a definite plan for action.

My hon. Friend the Member for West Suffolk mentioned the wide support give to the scheme by the local community. I would also mention the Gateway A11 East action group, which is represented here in the Public Gallery and has come to London to show how important the scheme is to them. The Eastern Daily Press, too, is here and listening to today’s debate; the paper has featured the problem heavily in its columns over the years. The scheme has extremely widespread support.

The problem, as has been pointed out, is that we are now in much more difficult economic times. However, Norfolk is not asking for handouts. We did not receive the national insurance tax holiday for new businesses; and we did not receive the millions of public sector jobs that other parts of the country did. Indeed, 72% of the Norfolk economy is in the private sector. To continue growing and making a net contribution to the tax pot—that is what we do in Norfolk—those businesses need their employees to be able to get into work and their supplies to be delivered to their customers. That is all that we ask.

The Norfolk infrastructure crunch is particularly acute in Thetford. Thetford was the ancient capital of East Anglia. It has an amazing number of energetic businesses—[Interruption.] I think I heard an objection; I am happy to take an intervention.

Thetford is a natural hub. We should bear in mind that it is well connected—at least, it would be if the A11 was sorted—to Cambridge, another growing economic area. There is a bottleneck where there should be potential economic expansion. However, although the town may be struggling with the lack of decent road connections, there are plans to build 6,000 more houses over the next few years and many more jobs and businesses will be located there. As a result, what is now difficult may become impossible. There are also plans for a new academy. We have the potential to be a major area of economic growth.

I fear that the people of Thetford are in danger of being all dressed up with nowhere to go. Despite the fact that the town is surrounded by some rather nice bits of dual carriageway, further out it peters out into a single-lane highway, which makes it difficult to transit further. Boudicca was thought to have based her operations in Thetford in ancient times. If she was to try leading her insurgency against the Roman army today, she would not get as far as Cambridge, given the state of the roads.

The road is important not only to the people of Thetford and South West Norfolk; it is economically vital to the nation. As my hon. Friend the Member for West Suffolk pointed out, the Department for Transport says that schemes with a benefit-cost ratio of more than 2 should be considered highly favourable. The guidance also says that in most, if not all, cases, such schemes should go ahead. The fact that the scheme would return £19 for every £1 invested suggests that it would be of huge economic benefit.

The figures suggest that a total investment cost of £100 million would yield tax revenue of £42 million and journey-time benefits of £1.2 billion, and that is before we take into account the extra businesses that might locate in the area when the A11 is dualled. Many companies are currently put off by the poor transport connections, and they are put off not just in Thetford, but in Norwich and all along the A11 corridor. The current Norfolk economy is valued at £16 billion. Between 2001 and 2007, growth in the Norfolk economy outstripped the rest of England by 10%. We could achieve even higher relative growth in our county because the entrepreneurs and the business acumen are there, but we need the infrastructure to support them.

Let us consider why the benefit of such a road scheme is so large. The answer is that this piece of road is effectively a ransom strip. It is the final part that has not been dualled. Recent research from the OECD suggests that connecting up networks so that they work is most important and achieves the most value for money in infrastructure investment. It is not about having individual high-value projects; it is about ensuring that we have a network that works, and that is the missing link in the chain. Those who might question the projected high returns—there are not many of them here today—should look at the projections for the A11 Attleborough bypass, which has just been completed. One year after the project, the Department for Transport commissioned a study to consider the return and how it had compared with the projections. The return on that project was a 5.2 benefit-cost ratio, which was only 0.2 adrift from the projections. I commend the Department for Transport for the accuracy of its economic analysis. Given that such a projection is being made on a similar road, I suggest that the high benefit that we would expect from the A11 Fiveways-to-Thetford scheme will be realised.

Like my hon. Friend the Member for West Suffolk, I have viewed the other projects in the pipeline. As far as I can tell, the A11 project came out with by far the highest benefit-cost ratio. Most other projects were in the low units and very few projects hurdled into the tens. At a meeting between the nine Norfolk MPs and the Chief Secretary to the Treasury, it was agreed that economic return would be the key criterion, and that it would apply not only within Departments but across Departments. I urge the Minister to ensure that these high-value projects are considered not only within the Department for Transport’s budget but in comparison with all capital budgets across Departments. We do not want to see a high-value project stopped just because it falls under the Department for Transport, and Government capital used on a lesser-value project in another Department. In our meeting with the Chief Secretary, we established the important principle that projects with the highest economic returns should go ahead regardless of which Department they are part of.

[The Parliamentary Under-Secretary of State for Transport (Mike Penning)]

The passion with which my hon. Friend makes her case is commendable. The only budget for roads within Government is in the Department for Transport. It is our budget and we are responsible for it. I will not shirk that responsibility; the buck stops here.

[Elizabeth Truss]

I thank the Minister for his answer. I take from it that the project would be ring-fenced by the Department rather than considered across Departments. The Minister might consider the road budget, but would other budgets be freed up if capital was not being properly utilised in other Departments?

[Mike Penning]

Of course, other aspects and other money from different parts of other Departments form the package, but the package for roads specifically falls under the Department for Transport. When we consider projects around the country as funding is freed up, we will examine that package, but the actual budget for roads specifically comes from the Department for Transport.

[Elizabeth Truss]

I shall continue to press my case. Infrastructure in this country has lost out in current spending, and we have all paid the price for that in economic growth held back. I will certainly put the case that infrastructure projects, as part of the capital budget, should be prioritised if they deliver such economic benefit. Clearly, the best option would be for the scheme to be approved under the road budget, and we look to the Minister to consider that as part of the comprehensive spending review.

As my hon. Friend the Member for West Suffolk said, the A11 dualling from Thetford to Fiveways is not just another road project. It is a very important project that will free up a huge amount of business resource, energy and entrepreneurship across East Anglia and help drive growth across the region. We are not asking for handouts in Norfolk. We are a county that delivers jobs, 72% of which are in the private sector, and we are a net contributor to the overall tax pot. What we want is our fair share of infrastructure spending to ensure that we can carry on delivering those economic benefits into the future.

[Hywel Williams (in the Chair)]

Order. As a number of new Members are in the Chamber, may I remind them of three points? First, they need not touch the microphones; they will come on automatically. Secondly, no reference should be made to members of the public or members of the press being present. Thirdly, irrespective of the obvious infectious enthusiasm for the A11, there should be no applause.

--- Later in debate ---

[Ben Gummer (Ipswich) (Con)]

Last Friday, I was at Ipswich station for the naming of a new train, the Evening Star, which is, of course, the name for Venus in the night sky. Coincidentally, it is also the name of a local newspaper in Ipswich. At that event, I was able to relate the sad story of how the people of Norwich stood in the way of the introduction of a train line from Ipswich to Norwich in the 1840s. It was only through the enterprising intervention of the then Member of Parliament for Ipswich that the train was able to go via Ipswich, and Norwich was released from the isolation that it had hitherto suffered. It is good to see that my hon. Friend the Member for West Suffolk (Matthew Hancock) is carrying on that fine tradition of progressive Suffolk MPs fighting for better transport links to Norfolk and Norwich. I know that some hon. Members could not attend this debate; my hon. Friend the Member for South Norfolk (Mr Bacon) is pained not to be here, and we are pained by his absence.

We were given a Betjeman-like description of the trouble of driving along the A11 by my hon. Friend the Member for West Suffolk. It is a journey that I have made many times. As Betjeman would have understood, when one travels on the railways in the west of our country, the train often goes from field to field, as the railway dodges what were the objections of local landowners. That is why it is so refreshing to have not only a progressive Member of Parliament in West Suffolk, but a progressive landowner in Lord Iveagh, who has kindly and brilliantly championed the A11, much of which transgresses on his land.

We Suffolk MPs are so keen on this route because we are Conservatives, and we believe not in levelling down, but in increasing both the general wealth and the regional prosperity of our two counties. I am pleased to be joined by the Norfolk MPs in that quest; they are clearly following in the tradition of past fine Suffolk MPs. One might well ask why the Member of Parliament for Ipswich is arguing for better road links to Norwich. Well, increased prosperity in Norwich is, of course, very good for Ipswich. The good people of Norwich can visit our superior parks and our pre-eminent museums and galleries. They can also come to be trashed by our transcendent football team. All of those things are good for Ipswich and for the people of Norwich.

Many transport infrastructure projects affect both our counties, and it is entirely right—I am glad that my hon. Friend the Member for Broadland (Mr Simpson) referred to this—that we are hunting as a pack, as the issues affect all of us. In my case, there is the issue of improving the Copdock interchange and the Harris Bacon curve, which will allow freight to go to the midlands and will allow us to improve our main train line from Norwich to Ipswich and London. Of course, there is also the matter of the franchise arrangements, which we will approve in the near future, and my hon. Friend referred to that subject.

Traditionally, our two counties have suffered from a chronic lack of investment in transport infrastructure. That is a missed chance, because we are one of the regions that contribute to the Exchequer—not many do. It would seem sensible to invest in that success to enable the major towns and areas of our two counties to grow and prosper even more. In that way, we can benefit the rest of the country.

[Elizabeth Truss]

Is it not the case that, under the previous Government, the economic return of projects was not properly considered or factored into decisions that were made? That is why so many rational projects did not go ahead at a time of unprecedented Government spending. They failed to fix not only the roof but the road while the sun was shining.

[Ben Gummer]

I am pleased to endorse my hon. Friend’s comments. She is entirely right: capital expenditure was neglected, particularly in the east of England. A point that I made in my maiden speech, and that I wish to impress time and again on the Exchequer, is that although the Budget for this year is set—I was glad to see that capital expenditure was protected in it—it is vital that ongoing Budgets bear down as much as possible on current expenditure to release funds for capital expenditure.

As anyone who has driven around the country knows, after going down nice bits of dual carriageway, one suddenly drives into a village where everything is blocked. That has gone on for too long. The issue is not just with the A11. We have failed to finish major infrastructure projects across the country. As for the spending on roads to which the Government wish to commit over the next few years, they should start by tidying up those areas that clearly need investment, and the issue that we are raising is surely at the top of the list.

I would like to touch on one further point. Members from Norfolk and Suffolk have been writing letters of a joint nature on schools, health care, broadband, roads and railways. In all those things, we lag behind the rest of the country, in terms of spending per capita. It is simply unfair for that to persist. It occurred not only under the previous Administration, but under Administrations before them. The situation is unfair, and not just because it fails to release the prosperity of the counties of which I have spoken; it is unfair on the pockets of deprivation that my hon. Friend the Member for Mid Norfolk (George Freeman) mentioned so wisely. It is all too easy for deprived areas that are surrounded by areas of relative affluence to be forgotten because of their wealthy neighbours. That is not fair on those areas.

In 1277—a year much lamented by Welshmen in this House; I count myself as one—Edward I began his invasion of our nation. He progressed with a giant force of not archers or swordsmen, but road builders. He built a road across the Dee from Chester to your beautiful constituency, Mr Williams. I am glad to see a new reincarnation of that great king in my hon. Friend the Member for West Suffolk, who, I hope, will drive a road not to Caernarfon but to Thetford and then Norwich. He will thereby release for both Norwich and Ipswich the prosperity that we can realise only by receiving the investment that we need.

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[Mr William Bain (Glasgow North East) (Lab)]

It is a pleasure to serve under your chairmanship for the first time, Mr Williams. I congratulate the hon. Member for West Suffolk (Matthew Hancock) on securing this important debate, which is of great relevance to securing higher economic growth in East Anglia and the wider east of England area. The fact that I am faced by so many Members on the coalition Benches and have no Members on my own Benches shows just how far my party has to go in trying to win back the trust of people in the east of England, a task that we shall pursue with great diligence in the course of this Parliament.

The hon. Gentleman and the hon. Member for South West Norfolk (Elizabeth Truss) campaigned with great effectiveness and persistence before and after the general election for the dualling of the nine-mile stretch of the A11, between the Five Ways roundabout at Barton Mills and the roundabout at the southern end of the Thetford bypass, and I pay tribute to their efforts. We have followed the hon. Gentleman’s contributions in the Chamber with great interest, particularly those on economic matters. He has quickly demonstrated a zeal for fiscal consolidation, of which his right hon. Friend the Chancellor would undoubtedly be proud. Indeed, given the hon. Gentleman’s background, it would not be surprising to learn that he was the architect of the plan for fiscal consolidation. Today, however, he made a surprising but welcome case for targeted capital investment in transport infrastructure. Who knows what further progress we may make before the end of this Parliament? Perhaps we will find that beneath that only occasionally monetarist exterior there beats the heart of a Keynesian after all, at least with regard to transport investment.

[Elizabeth Truss]

Is it not the case that even Adam Smith, quite a dry economist, suggested that infrastructure spending was important for the viability of businesses? It is hardly a Keynesian case.

[Mr Bain]

The hon. Lady makes an important point, and one to which I will return later in my remarks. I know that hon. Members are keen on establishing the provenance of their arguments through literature reviews—indeed, I have an important article to which I will refer later.

The hon. Member for West Suffolk eloquently argued that investment in roads now can generate higher economic growth in the future—I strongly agree. I pray in aid an important article by Nicholas Crafts in the Oxford Review of Economic Policy last year. He cited the problem of the relative lack of transport investment in roads over the past few decades, for which Governments of all political hues should be held accountable. The important point in his piece—indeed, the nub of his argument—was that public investment in roads provides greater returns in private investment. He concluded that the productivity gains obtained “crowd in” and do not “crowd out” private investment. I hope that Government Members take that argument on board.

I pay tribute to the other contributions to the debate from the hon. Members for South West Norfolk, for Great Yarmouth (Brandon Lewis), who spoke with great insight about the benefits of the A11 dualling for his area, for Waveney (Peter Aldous), for Broadland (Mr Simpson), for Mid Norfolk (George Freeman), for Ipswich (Ben Gummer) and for Norwich South (Simon Wright).

As the hon. Member for West Suffolk mentioned, although investment in completing the dualling could cost the public purse anywhere between £106 million and £147 million, the Highways Agency has estimated that such investment would bring £557 million in benefits to the East Anglian economy and improve safety capacity and journey times along the A11.

The hon. Member for Norwich South referred to the Atkins report commissioned by the East of England Development Agency, Norfolk county council and the Government office for the East of England. It established that benefits could be worth £202 million for commuters and leisure travellers, £355 million for business travellers, including freight and car travellers and an additional 20%—perhaps £136 million—in time savings.

In the “A11 Wider Economic Impacts Study”, Atkins makes a powerful case for the economic benefits that could be brought by the dualling. The report cites increased business efficiency and confidence, and bringing together the communities of Norfolk and Suffolk—tangible benefits that would emerge from the investment.

The section is the last remaining stretch of single carriageway on the M11-A11 route to Norwich, where congestion is a consistent problem, exacerbated at times by agricultural traffic. A public consultation was initiated in 2001, a preferred route was announced in November of that year, a draft order was published in 2008, and a public inquiry commenced in November 2009.

The project has been met generally with favour and approval locally. The Royal Society for the Protection of Birds and Natural England, reportedly opposed to the scheme at first, withdrew its opposition after the Highways Agency agreed to create suitable habitats for nesting stone curlews. On 28 April, as already referred to, my noble Friend Lord Adonis, the then Secretary of State for Transport, on behalf of the Labour Government made a commitment to complete the dualling of the nine-mile section between Thetford and Barton Mills, subject to receipt of the planning report following the public inquiry into the project.