High Speed Rail (West Midlands - Crewe) Bill

Jim McMahon Excerpts

Report stage & 3rd reading & 3rd reading: House of Commons & Report stage: House of Commons
Monday 15th July 2019 Commons Chamber

[Sir William Cash]

The hon. Member for York Central is smiling as she looks across the Chamber—[Interruption.] She says that it is unbelievable, but it is anything but unbelievable—it is entirely true and entirely credible. My hon. Friend the Member for Lichfield backed me up on this. What is the point in having a first-class, independent review of the kind that is being advocated and saying that it will come into effect only after this has been made into the law of the land? [Interruption.] I see the Opposition Front Bencher, the hon. Member for Middlesbrough (Andy McDonald), chuntering, but perhaps he would like to come to the Dispatch Box and explain the nonsense that lies behind that reasoning.

[Jim McMahon (Oldham West and Royton) (Lab/Co-op)]

Does the hon. Gentleman not accept that this is just good governance? If we are spending this amount of taxpayers’ money, we have to have decent oversight to make sure that the money is being used to the best effect. That should perhaps have been built into the process earlier, but the fact is that it is being brought forward at this stage. Presumably that is why he supports it, but let us be honest: whatever is introduced, he will never support this project, which I do strongly, because this is about not just rebalancing the UK economy but connecting the north to great opportunities across the whole of mainland Europe.

[Sir William Cash]

The hon. Gentleman is completely right to say that I will never accept this project. I have made that abundantly clear not only by my votes, but by the arguments that I have presented. I come back to this point: we cannot say that there is transparency if this is turned into the law of the land. It is one of the most nonsensical new clauses that I have seen, notwithstanding the fact that I strongly believe that an independent peer review would be a good idea. However, it should come before Royal Assent, not after.

[Sir William Cash]

That all sounds frightfully interesting, but I am afraid that it is not what we are dealing with. We have this Bill and a project that is the biggest white elephant that has ever been seen in modern history, as far as the United Kingdom rail system is concerned. It is a complete outrage that my constituents should have this perpetrated on them.

I am serious when I say that I shall be campaigning not only for a review of these proposals but in pretty short order to have the Act repealed, because that is the only way this can be sorted out. It is a complete disgrace that the Government have introduced the Bill in the dying days of this Government. [Interruption.] The hon. Member for Crewe and Nantwich (Laura Smith) is laughing because she knows I am right. These proposals almost certainly would not survive the review that will be taking place under a new Prime Minister. I am making a fair assumption about who that person will be.

[Jim McMahon]

rose—

[Sir William Cash]

I will give way again to this extremely energetic Member of Parliament.

[Jim McMahon]

I can assure the hon. Gentleman that I do not feel energetic. Is it not the case, though, that the zero-based review, which the Chief Secretary to the Treasury proposed, is not a genuine review of the project but is about creating a war chest to buy the support of Conservative shire candidates? It has nothing to do with HS2; it is about clawing back the money for a fighting fund.

[Sir William Cash]

The hon. Gentleman has very sensibly tempted me into saying something else that I believe. I am completely against these proposals in relation to my constituents and the national interest—it is the biggest white elephant of all time, as all the reports I referred to in my Westminster Hall debate demonstrated. There have been even more since, including one from the Infrastructure and Projects Authority, which rated the whole thing as amber—although in fact it probably thinks it is in the red. If only, it said, we could get rid of this ridiculous proposal and put the money where it deserves to go, which is across the country, east to west, which I happen to agree with very strongly. On that point, I had some sympathy with what the shadow Minister said.

There is another factor. This incredible waste of money could make an enormous difference to this country’s coffers in the not very distant future. It seems absurd to be wasting money like this. We hear all these ridiculous arguments about Brexit, but this is the kind of thing that is bringing the country to its knees by virtue of wasted expenditure on projects that are no more than a white elephant.

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[Laura Smith]

My speech is all about the way in which HS2 will help to deal with these matters, but I will speed it up, Mr Deputy Speaker. My apologies.

I am not for one moment suggesting that HS2 will solve all these problems alone, but it can and must play an important role as part of a wider strategy. As I said on Second Reading:

“My vision for HS2 is not as an end in itself, benefiting only businesses and commuters, but as a catalyst for the radical rebalancing of our economy”.—[Official Report, 30 January 2018; Vol. 635, c. 741-42.]

I firmly believe that we need to shift our economy towards investment-led growth. The choice that has been presented between HS2 and better east-west links in the north is an entirely false one. In any case, Northern Powerhouse Rail services will, at two of their most important regional links, run on HS2 infrastructure.

Some businesses choose to pay almost four times as much per square foot for premises in London and the south because of the poor connectivity in the north. Last year, a report by the Institute for Public Policy Research North indicated that planned transport investment in London was two and a half times higher per person than in the north of England, and productivity in London is reported to be some 40% greater than in the north, demonstrating a strong correlation between connectivity and productivity. In its recent report, High Speed Rail Industry Leaders set out why it believes that improved connectivity will lead to greater regional productivity, and enhanced specialisation that will help us to bring about a more balanced economy.

[Jim McMahon (Oldham West and Royton) (Lab/Co-op)]

My hon. Friend makes the case eloquently for her constituency. This independent review is so important because it is not about the pounds being spent globally; it is about the impact on jobs and local communities, economies and supply chains.

[Laura Smith]

Absolutely. The review is incredibly important. What does the review mean for places like Crewe? Crewe has the potential to build on the 360° connectivity it already has to become the key regional hub bridging the north and the midlands. The local enterprise partnership is working alongside Cheshire East Council on a proposal for a Crewe HS2 growth corridor that will bring together strategic development sites in Crewe, Middlewich and Winsford, so that they can build on their traditional strengths in high-value manufacturing. As for the model through which the LEP proposes delivering that corridor, it will invest up front to unlock development, and will be repaid through the generation of new business rates. Any surplus income will be used to help finance station improvements.

I am coming to the end of my speech, Mr Deputy Speaker; I get the impression that I might have pushed my luck a little, but I am still fairly new to this process, so please excuse me. I reiterate that the passing of this Bill is not nearly enough to unlock my constituency’s full potential. I would like the Government to commit to seven HS2 trains per hour stopping at Crewe, and more frequent regional train services to and from Crewe on each of the lines radiating out of the town. A northern junction at Crewe is essential to allow Birmingham-Manchester HS2 services to stop at Crewe, and to allow Crewe to be part of the Northern Powerhouse Rail network, which would open up the possibility of direct service to Leeds and other destinations east of the Pennines.

I am concerned that some appear to be flirting with the idea of scaling back HS2, either through short-sightedness or, worse, for political gain. HS2 has shaped our local planning framework, and so much work has gone into bringing all stakeholders together to realise the potential of HS2 in Crewe that it would be nothing short of tragic if the Government failed to deliver.

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[Antoinette Sandbach]

I completely agree with my right hon. Friend, which is why I tabled new clause 5. NDAs should not be used to shut people up and prevent them from saying what is happening inside the organisation. Not only that, but NDAs are being used to deprive elected Members of this House and other officials of important information about some of the impacts and problems, which we should be scrutinising.

[Jim McMahon]

I absolutely respect that the hon. Lady is giving voice to her constituents, but she has been fairly negative so far. Can she think of one positive that HS2 will bring?

[Antoinette Sandbach]

I am glad to be giving voice, because I sound a bit croaky—I am losing my voice.

I agree that there are potential benefits, but the question is whether those benefits are worth the cost and whether the business case stacks up. I would much rather see the east-west Northern Powerhouse Rail connection happen as a priority.

When a rolling stock depot is moved from another constituency to mine and put next to a school, thereby requiring the whole school to move, there seems to be either a level of incompetence or staggering complacency in the management of the project. I have been at events where my constituents have asked questions and not received answers.

There have been ministerial orders to provide mock-ups of the rolling stock depot so that we can understand the scale and impact, and HS2 has just ignored them and said that it will not provide the mock-ups. Then there has been a change of Minister, who has taken a different approach.

My concern is that, unless this protection is in the legislation, we will potentially see a change of Secretary of State, and that we will then not have the protections in relation to this kind of infrastructure project that all our constituents deserve.

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[Yvette Cooper]

Nobody has done a proper assessment of where transport infrastructure investment is going and what the impact is on cities and towns. Some assessment has been made of the impact on different regions of the country, and that is important. Actually, it is significant, because I think the New Economics Foundation cites HS2’s own figures showing that 40% of the benefits from HS2 will go to London, whereas only 10% of the benefits will go to Yorkshire. I want to see a broader assessment of the impact on cities and towns.

Job growth is twice as fast in cities as in towns. New digital jobs, service jobs, university-related jobs and cultural jobs are all being concentrated in cities, but manufacturing, distribution and retail jobs are disappearing from towns. That is a result of automation or changes to our economy, but public sector investment decisions, including on transport priorities, are making that worse. Public services are shrinking back from towns into cities, and the new infrastructure investment is always concentrated on cities rather than towns.

[Jim McMahon]

rose—

[Yvette Cooper]

I will give way, even though I said that the previous time was the last.

[Jim McMahon]

I took the hint from Mr Deputy Speaker that he was relaxed about interventions.

I thank my right hon. Friend for her work to give a voice to towns, which is important. Does she accept that the capital focus of HS2 is one thing, but it is revenue spend that has massively affected towns? In Greater Manchester, we have lost 30 million bus miles because of central Government revenue cuts. One thing we could do today is reinvest the revenue that has been lost.

[Yvette Cooper]

My hon. Friend is exactly right. Certainly, for bus services, which are crucial for our towns, the loss of revenue has been particularly crucial and devastating. This debate is about towns getting their fair share of both revenue and capital investment. Currently, I do not think we are getting either.

The campaign to power up the north led by some of our regional newspapers is immensely important, and I strongly back it, but I also think that it is time to power up our towns, as they have immense potential and are not getting their fair share of investment. Time and again, whether through HS2 or Crossrail 2, too much money—the big billions—is still going into the cities rather than the towns. That is why I support this review, but ask for it to be broadened.

I urge the Minister to broaden it as well, because the truth is that Members from our towns have been respectful, we have asked sensible questions, we have been patient, and we have waited and waited and, frankly, we have got nothing. We see no sign of anything improving for our transport infrastructure. We see no sign of anything other than warm words about promises in the future. We need that review of the geographic benefits and we need a proper towns plan—a proper plan for major infrastructure investment. Until we have that, the Government’s transport infrastructure plan is simply not in the national interest.

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[Fiona Bruce]

That is exactly the point that I am seeking to make. I agree. It is very interesting that the Lords Economic Affairs Committee found evidence that the costs of HS2 appear to be out of control. That does not inspire confidence in my constituents. If there is going to be improved connectivity outside our constituency, many of them would prefer to see it across from Manchester towards Leeds and Yorkshire, rather than further connectivity down to London, which they already think is quite satisfactory for their purposes.

The case for speed has never been made. People work on the train and, because my constituents will have to make a connection—whether it is from Crewe or elsewhere—they are not convinced that the slim time saving justifies the expenditure that will be incurred. If the aim of the project is to narrow the gap between the north and London, the investment needs to be in the north.

[Jim McMahon]

I accept that Governments need to balance the books—they cannot spend the same pound twice. Quite a few times in this debate, we have heard northern MPs call for the money to be shifted across, but when has the same been done in London? When does London have to choose between good infrastructure and capital investment on the one hand, and affordable, efficient transport at a local level on the other? London does not have to choose. Why should we?

[Fiona Bruce]

Absolutely.

My hon. Friend the Member for Stafford referred to the series of junctions on the M6. Junction 17 of the M6 at Sandbach in my constituency needs improvement to take the additional traffic that is increasingly burdening it, particularly because of the additional house building. It is one of the few junctions in the country without a roundabout serving it. Each morning, we see huge pressure, in particular from those commuting from Sandbach to Manchester and elsewhere. It is highly unsatisfactory and another priority that needs to be looked at—in my constituents’ view, looked at in preference to the proposed investment in HS2.

There is going to be an impact in my constituency, because while HS2 does not pass through it, it passes within yards of it. It will pass through Stanthorne and the Bostock Hall estate, literally within yards of Middlewich. Many of my constituents will be impacted—the quality of their lives will be impacted—by this without any compensation being available to them.

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[Mr Ivan Lewis]

I am happy to support the new clauses as they make a lot of sense in terms of accountability, evaluation and transparency, as well as ensuring constant review of a project as massive as HS2. It is also important to acknowledge the scandalous inequality of investment in the north of England that has been the case under successive Governments.

The former Chancellor of the Exchequer, George Osborne, deserves some credit for the concept of the northern powerhouse and the whole principle of devolving maximum power, but that has to be accompanied by resources. Since the change of Prime Minister and because it was the former Chancellor’s project, the Government have taken their eye off the ball when it comes to devolution and the northern powerhouse, and it is even less a central component of the Government’s agenda than it was in the past. So I will actually say that the Conservative Government did more in terms of devolution in principle in England than previous Labour Governments had done, but it was not accompanied by investment and, since the change of Prime Minister, that agenda has been sidelined.

[Jim McMahon]

I should say that I think Labour has a good track record on devolution and devolving power. Does my hon. Friend accept that the concept of the northern powerhouse is like the concept of a cake without the ingredients?

[Mr Deputy Speaker (Sir Lindsay Hoyle)]

I do not want to hear too much about cake.

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[Mr Paterson]

I am going to come to that in a minute. I am wholly amazed by the revelations from my neighbour, my hon. Friend the Member for Eddisbury (Antoinette Sandbach), and I look forward to the Minister’s comments on that, because I was really shocked by what my hon. Friend said. Given my experience of having a series of meetings with HS2 officials, all of which have been—at face value—thoroughly satisfactory and an open exchange of views, but have got absolutely nowhere, it now appears that there might some other reasons why that is. Given what she is saying, I cannot find out why, so if she presses her amendment, which I very much hope she does, I would like to hear from the Minister whether the Government will accept it. If they do not, I will be very happy to vote in favour of it. My hon. Friend has flushed out a most serious issue.

[Jim McMahon]

I absolutely accept the constituency issues that the right hon. Gentleman raises, and the poor consultation cannot be excused, but he must accept that with a route and project of this scale, the minor changes that are made in one part of it will have a massive impact if that is held across the whole route, and that has an impact on the budget and the timescale. Whether he supports the project or not, he must accept at some point that it is either time to back it or scrap it. There is this idea that we can keep throwing on hundreds of small, different issues and take that as a measure of the project, but that is just not a way forward. This is a major project for this country and it should be debated in that way.

[Mr Paterson]

I am very grateful to the hon. Gentleman for his interventions. He has been busy making these points throughout the debate and I understand that he is fully in favour of the project. I began my working life by spending 25 years on Merseyside. I am fully aware of the need for transport connections for the north, particularly including west to east across the north of England. I began wholly in favour of this broad idea, but the more I look at it, the more worried I become.

Let me finish my points on my local issue in the village of Woore. We cannot just dismiss these as tiresome little irritations in a huge juggernaut of a project. These are real people: 1,200 people live in Woore and they will have 300 trucks a day going through a village where, in some places, there is no footpath. In schedule 1, on page 48, Members can see some proposals on mitigations, such as a “realignment of the A525” in a few places. These are just passing places. They in no way satisfy my constituents with regard to what they are looking for and are not good enough at all.

Will the Minister, who is beginning to get her notes together, comment on the proposals from Woore Parish Council that section 17 of the Town and Country Planning Act 1990 should be invoked? As I understand it, under that section, the unitary council’s—in my case—permission is required if there are heavy vehicle movements exceeding 24 a day. In Woore, we were faced with the horror of 600 movements. As a result of stretching out the length of the project, we are now looking at 300 a day, so we are massively over the threshold. I would like to know what would happen if Shropshire Council did not give permission as required under section 17 of that Act. Where would these trucks go? As I said, they are already taking a perverse route, over three sides of a quadrangle, to go from Baldwins Gate to Madeley.

I want to pick up some points that, again, could have been flushed out if the amendment had been properly drafted. Let me look at the economic impact. My worry about this project is that this is actually Victorian technology. Large steel boxes rolling around on steel wheels on steel tracks is not modern technology. [Interruption.] My neighbour, the hon. Member for Crewe and Nantwich (Laura Smith), is laughing at that. We are looking at the most expensive railway ever imagined. The original proposals were set in 2010 and the projected cost was £32.6 billion. That is now up to over £60 billion. Some estimates are talking about £80 billion, while others suggest £100 million. Let us compare that with what we could do on broadband, where we are miles behind other countries. We have only 4% full fibre connections at the moment. Spain has 71% and Portugal has 89%.