Oral Answers to Questions

Grahame Morris Excerpts

Thursday 24th November 2022 Commons Chamber

[Huw Merriman]

I thank my right hon. and learned Friend for his warm welcome of my entire portfolio; I am very proud to be covering HS2 and rail. Some £3.2 billion has already been paid out in land acquisitions, and more is to be paid out. The Government did recognise that there were problems with acquisitions, and a report was commissioned by a predecessor of mine. We will ensure that we can learn lessons. With regard to the payment of interest, HS2 Ltd pays interest at 0.5% below the Bank of England base rate, and there was a period of two years between 2020 and 2022 when no interest was paid because the base rate was below 0.5%, but I am willing to meet my right hon. and learned Friend to discuss these matters further.

[Grahame Morris (Easington) (Lab)]

I welcome my hon. Friend the Minister to his position. I remind him that Mark Thurston told the Transport Committee that the anticipated spend for the current year was within the envelope of £5.7 billion. My question relates to how that £5.7 billion is being used in terms of procurement. What can the Minister and the Department do to encourage or specify the use of British steel for rails and structures within the terms of the contract?

[Huw Merriman]

I thank the hon. Member, or should I say my hon. Friend, as he is indeed that. I recognise all the work that he has done and continues to do on the Transport Committee. I thought he might ask that question. Some £122 million of British steel has been purchased by HS2. I am keen that we talk to HS2 more about how it can further invest in British steel. I will supply him with figures on how much steel has been produced from outside the UK, because that is how we will end up holding to account. Some 60% of the HS2 procurement contracts will go to small and medium-sized enterprises, as well as large entities such as British Steel.