Transport and the Economy

Kevan Jones Excerpts

Tuesday 28th February 2012 Commons Chamber

[Angela Smith (Penistone and Stocksbridge) (Lab)]

I start my short contribution by paying tribute to the Chair of the Select Committee, my hon. Friend the Member for Liverpool, Riverside (Mrs Ellman), who has shown astounding leadership for some time. I am particularly proud that this report is being debated today, as I was a member of the Select Committee when we first met after the election. Indeed, I was one of those calling for this inquiry, so I am particularly pleased to be able to contribute to today’s debate.

The report on “Transport and the economy” is an important one. We have heard broad statements and warm words from the Government for some time about transport and its role in supporting economic growth, but there is no sense of how their decisions on transport fit into a strategy, and no clear sense of how any particular scheme announced by the Government will fit into a strategy for economic growth. Nor is it clear how the Government’s decisions will help to deliver their stated intention of rebalancing the economy. I therefore welcome the report’s recommendation that a White Paper on transport and the economy be produced exactly to clarify that point. The report is important, too, because it makes clear that investment in transport infrastructure needs to be linked to plans for economic development. HS2 provides a good example.

The argument for HS2 is partly about capacity, so it relates strongly to the role cited in the Eddington report for transport investment to reduce congestion, thereby removing barriers to economic growth. HS2 is also about bringing economies across the country closer together, improving the dynamics of those relationships—in other words, the agglomeration benefit.

[Mr Kevan Jones (North Durham) (Lab)]

Does my hon. Friend agree that unless some time line is put on extension of HS2 further north, there will be considerable cynicism in areas like the north-east that a great deal of investment will be made that will have very little economic impact on such regions?

[Angela Smith]

I wholly concur. In fact, if we are to maximise the agglomeration benefits of HS2, I would argue that the economies—from the far north to London and the south—that are linked by the HS2 line must have clear strategies in place for economic development in order that the transport investment represented by high-speed rail can perform to its full potential.