High Speed 2: Yorkshire

Debate between Kevin Barron and Ed Miliband

Monday 6th February 2017 Commons Chamber

[Edward Miliband]

The right hon. Lady has a long track record of campaigning on this issue. Although she and I may differ on the principle around HS2—I support it—the point that she makes about its inconsistency of approach is deeply troubling. It was recommending the Meadowhall route not just in October 2014 but, as we discovered thanks to FOI, in late 2015 and as late as February 2016. I was going to call this debate—partly in order to attract more people to it—“The mystery of HS2 in Yorkshire”, because it is a mystery to me what changed. In February, HS2 was saying that Meadowhall was the right option. By April or May, the previous Secretary of State was walking around my constituency looking at the other route.

[Sir Kevin Barron (Rother Valley) (Lab)]

I spoke to David Higgins in July last year when this occurred, and he said that there was no consensus for Sheffield Meadowhall. It is quite clear to me the damage that the M18 route will do to three villages in my constituency. If M18 goes ahead, the sub-regional economy of South Yorkshire will lose out massively on the benefit and the jobs that HS2 said two years ago would result from Meadowhall going ahead. It is inconceivable, in my view, that that should not happen, and it has not been written off.

[Edward Miliband]

My right hon. Friend makes an important point, and I hope that the Minister will be open-minded. Although the Secretary of State has said that he is minded to go ahead with the M18 route, he has kept the Meadowhall option open.

I come now to the issue of cost. HS2 has been careful to say that the claimed £1 billion of savings is not the motivation for the route change, but I totally understand why the Minister and the Secretary of State would care about the cost. Unfortunately, it turns out that the claimed savings are simply illusory. This £1 billion of so-called savings excludes a whole number of costs. It excludes the electrification of the northern loop to Leeds, which will cost £300 million and which is essential for any link to Leeds, because it is not built into the plan. It excludes the cost of a parkway station, which HS2 is suggesting could cost somewhere between £200 million and £300 million; that is not in the plan. It excludes any re-engineering of Sheffield Midland; that is not in the plan. It excludes potential electrification of the Sheffield line; that is not in the plan. It excludes the optimism bias that the National Audit Office called the Government out on. My right hon. Friend the Member for Don Valley (Caroline Flint), in her role on the Public Accounts Committee, has been assiduous in looking at these issues. When we look at the so-called £1 billion of savings, we found that it disappeared. I ask the Minister to come back to me on that if he disagrees.

That is half the problem, but there is another half to the problem. The Government and HS2 have been talking about the capital costs of the project, but when we look at the fine print, we might wonder why they have not been talking about the operating costs. There is a very good reason why they have not done so. The operating costs of the M18 route—this comes from the Government’s own figures—are a staggering £1.7 billion higher than those of the Meadowhall route. Not only do the savings disappear, but the route turns out to be more expensive by £1 billion or more over the lifetime of the project. I hope that one thing that we can establish today is that the Minister and HS2 really should stop saying that the route saves money, because it does not. It does not save money when we look at the capital costs, and it certainly does not save money when we throw in the operating costs as well.

When I go through the arguments about the benefits to South Yorkshire and look at whether we believe this economic intervention will help South Yorkshire and do so properly—there are issues of connectivity, demand, local constraints and costs—I am afraid that I do not believe the M18 route adds up. Some people have said that the problems can be solved by having a parkway station on the M18 route—for example, in a village or town in the Dearne valley—but I do not believe that. An afterthought parkway station will provide a maximum of one or two trains an hour, not five. It would be likely to have all the same connection problems as the city centre option, and it raises the most profound infrastructure challenges.