High Speed Rail (London – West Midlands) Bill

Julian Smith Excerpts

Monday 28th April 2014 Commons Chamber

[Mary Creagh]

The right hon. Gentleman refers to a part of the report that does not immediately spring to mind—I have not perhaps digested it and kept it in mind as thoroughly as he has done—but there is broad consensus across the parties that the project is the right thing to do for the nation, and I hope that we can proceed on that basis.

[Julian Smith (Skipton and Ripon) (Con)]

As a Yorkshire MP who is now behind the project at full throttle, will the hon. Lady commit herself to selling it in Yorkshire—to her council and beyond—to ensure that we make the most of this project for our region and every city in it?

[Mary Creagh]

Absolutely. It is right for Wakefield council to represent the views of local residents. The costs of HS2 are significant, but I believe, as does the hon. Gentleman, that the benefits are great.

As I said earlier, we want a one nation economic recovery to rebalance the growth across sectors, nations and regions. A long-term high-speed rail investment programme presents huge opportunities for the UK’s design, engineering, construction and manufacturing sectors. It offers a secure future for the railway supply chain and will showcase the UK’s expertise in the global high-speed market. The Olympics, Thameslink and Crossrail have transformed travel in London. It is time for the wider UK economy and society to benefit from the transformational opportunities that a major infrastructure project brings. The first phase will bring more than 40,000 jobs: 9,000 jobs in construction, 1,500 permanent jobs in operation and maintenance, and 30,000 jobs at Old Oak Common, Euston and Birmingham.

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[Julian Smith (Skipton and Ripon) (Con)]

As a Yorkshire MP, I am worried about HS2, but not for the same reasons that Mr Speaker or some of my colleagues are worried. In fact, I am not worried about the actual policy. I am proud to support it: it shows vision and a clear sense of the infrastructure our country needs to compete in the 21st century.

I am not concerned that the policy will suck funding away from other transport projects—the £56 billion of investment in non-HS2 projects between now and 2021, or the £600 million going into the northern hub. I am not worried about HS2 Ltd itself; we have a crackerjack team in Sir David Higgins and the whole management. I am not at all convinced by the arguments against the rationale and the cost-benefit of HS2. The arguments for HS2 on capacity and speed are pretty compelling, as we have heard in this debate, and the value for money projection seems quite conservative. I am not concerned about Britain’s ability to deliver on this project. We have done Eurotunnel, the Olympics and HS1, and we will nail this project without a problem. The number of complaints about the project has been relatively small. There were only 22,000 responses to the consultation before Second Reading. We should take confidence from that support and from the international comparisons, such as the examples of Lille and Lyon in France, the linking of every city of more than 500,000 people in China and, lately, the performance of Eurotunnel, which this year smashed its freight and passenger targets.

My worry is that Yorkshire is not as excited about the project as it should be. This is a phenomenal opportunity for Britain and particularly for Yorkshire and the north. There has been a lacklustre response so far. Labour dominates many of the cities in Yorkshire, but in Parliament it shilly-shallies in its support. Wakefield council has rejected HS2. In a recent poll, a majority of Yorks SMEs seemed a bit lukewarm. There is not the interest, sizzle and enthusiasm that one sees when one goes to Manchester, as I did for the last Conservative conference. I encourage you to come to the next one, Mr Deputy Speaker. There has been little discussion of how Yorkshire can strategically maximise the opportunity of HS2.

The opportunity for the north and for Yorkshire comes not just from the faster speeds to London and Birmingham or from the greater capacity, but from the massive economic investment to integrate Yorkshire and the north more closely. We need to be enthusiastic because transport is vital to our region’s productivity. If one compares the productivity of Liverpool, Manchester and Leeds to geographical areas of a similar size, such as Chicago and the Ruhr valley, there are billions of pounds of difference in the output. Not only is there lower productivity, but the number of FTSE 100 companies north of Birmingham is only six. Skills are slow to get across the region from west to east and supply chains are not short enough. The keys to fixing those problems are complex, but better transport is vital.

We need to bring our northern cities closer together. Jim O’Neill and his City Growth Commission are absolutely right with the idea of “ManPool”, but perhaps we need to go further and bring all our northern cities closer together. Over the next 10 years, nearly half of global growth will come from just 400 cities. Yorkshire and the north must be in the race. We have a once in a century opportunity to get there. We have to look at how HS2 can be the backbone for that development. We need a second London. It will look different, but we need it if we are to compete in the world.

What do we need to do? Sir David Higgins and his team have clearly articulated their desire to maximise the benefits for the north. We need to work out what we want from the project. Doncaster did not lose out on the benefits of East Coast because of the line, but because of a lack of political will. Every LEP should be pushed hard for an HS2 growth plan and to show how it is working with partners across the region. We need small business groups to engage and promote the opportunity. We need to look at transport as a whole and be clear about what we want. We must do that as quickly as possible. We must look at how we will build on the northern hub, how we will integrate with East Coast and how we will improve trans-Pennine services. We need to look at how Yorkshire has reacted so far and shout much louder about the benefits, tearing up old rivalries—

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. I call Neil Carmichael.