High Speed 2

Greg Mulholland Excerpts

Tuesday 23rd November 2010 Westminster Hall

[David Mowat (Warrington South) (Con)]

I will describe the context as I see it for such infrastructure improvements. The right hon. Member for Holborn and St Pancras (Frank Dobson) spoke of economic forecasts. I start with the economic figure that the average gross value added per head in London is about £30,000, whereas in the English regions, it is about £17,000. Such a huge difference does not exist in any other country in Europe. One way in which that can be fixed is through infrastructure investment. Even now, there is massively more infrastructure investment in London, with 60% more infrastructure capital spend per head in London than in the regions. The high-speed rail project is fundamental to the regeneration of large parts of the north of England and the midlands.

We have discussed the business case so I will not spend much time on it, although we could argue more about it. The Department for Transport will have to publish the business case. The net benefit ratio in the preliminary publications was 2.7, which is pretty high. However, that figure includes assumptions about factors such as idle time and optimistic passenger projections—I think that the figure was 278%. That must all be worked through. The business case does not include anything about the economic regeneration of the north, the carbon savings from the modal shift from road and air to rail, or the freeing-up of airport capacity. It is not possible not to go ahead with the third runway without a project of this kind.

[Greg Mulholland (Leeds North West) (LD)]

I agree with the hon. Gentleman that the project will benefit Yorkshire and the north-east, as it will the north-west. Does he agree that when the Y-shaped line is built—as I hope it will be—both legs should be built at the same time to ensure that the benefits that he rightly identifies are brought to the north-west and the north-east simultaneously so that one region does not suffer at the expense of the other?

[David Mowat]

I agree that the Y-shaped solution is the most sensible one, but I do not want to get into which part should be built first. I would like to quote a few numbers on the transformational impact of the potential scheme. We are generating, potentially, many tens of thousands of jobs. In January 2010 KPMG published a report which estimated an incremental increase in employment of between 29,000 and 42,000—not directly from constructing or operating the line but due to the economic and productivity impact on the regions of much closer links with London. In itself, 40,000 jobs would generate a huge bonus for the Exchequer, but none of that is currently in the business case that is being debated.

A lot—in fact, nearly all—of the comments up till now have been on the environmental issues surrounding the line. I do not want to minimise their impact, but the Government are the Government of the whole country, not just of the south-east of England and London. It is important that we properly weigh up some of the unpleasant environmental impacts against the greater good.