High Speed 2

Lilian Greenwood Excerpts

Tuesday 14th January 2014 Westminster Hall

[Lilian Greenwood (Nottingham South) (Lab)]

It is a pleasure to serve under your chairmanship today, Sir Edward.

I begin by congratulating my hon. Friend the Member for Edinburgh East (Sheila Gilmore) on securing this important debate. A constant champion of the railways in this Parliament, her speech this morning exemplified both the passion and the attention to detail that she brings to discussions of rail issues.

I think that all right hon. and hon. Members would agree that the exponential growth in passenger demand now poses a serious challenge for our railways. We have debated the causes of that growth at length before and I do not propose to revisit those arguments today, but it is a fact that passenger demand has doubled in the last 20 years and we are now accommodating the same number of passengers as there were in the 1920s on a network less than half the size it was then. That growth has continued through periods of infrastructure disruption and even through recession. Technology is making it easier for people to travel and young people are now the group who are most predisposed to travel by rail.

Passenger numbers grew by 7.3% at the start of last year compared with the first quarter of 2012, and across the network conflicts between inter-city, commuter and freight trains are common as competing grades of traffic jostle for scarce paths. As my hon. Friend spelled out, some sections are already approaching the limits of their capacity, especially on the west coast main line, where the number of trains being run has doubled during the past 15 years, leading Network Rail to warn that the line will effectively be full by 2024. All this has happened despite the west coast route modernisation project, which cost £9 billion and caused enormous disruption over a period of 12 years without delivering the long-term capacity benefits that we as a country need.

I have full sympathy with right hon. and hon. Members and local authorities who represent communities served by the west coast main line, and they have made it clear that they have no wish to relive the experience. Unfortunately, the heavy demands on the line mean that expensive periods of disruption continue. In 2014, there are three planned closures of the line in the Watford area alone, which means that the southern end of the line will be closed for most of August as track and signalling is replaced. Such closures require sizeable compensation payments to train operators—Network Rail puts the cost for such works on the west coast main line at 18% of its overall budget—and cause delays and inconvenience to businesses and individual passengers, the costs of which are much more difficult to quantify.

Consequently, before I talk about the economic case for HS2, we should consider the economic impacts of inaction. Commuter trains could be cut as train paths are reassigned to more profitable long-distance trains—a process familiar to transport planners and passengers in the west midlands. In the most extreme cases, some smaller stations in Staffordshire were closed while the west coast main line was being modernised, and they have not reopened. Thousands of passengers are already being left standing on their morning commute, not only on routes into London but on the approaches to Birmingham, Manchester, Leeds and Sheffield. In addition, growing congestion on the lines hits resilience and reliability, undermining rail’s traditional advantage over other modes of travel. A consequence of the growing number of services provided is that journey times have not improved on most of the main lines, and in many cases have got worse in the past 20 years. Even after the intercity express programme trains are introduced on the east coast main line, a number of important long-distance journeys will still take the same time as they did in 1991.

There is a clear need for capacity improvements, and as the British Chambers of Commerce has said:

“Future business success depends on infrastructure networks that meet demand. Rail is no exception. The UK rail network must have the capacity to meet rocketing business demand - for long-distance services, for commuter rail services, and for the transport of freight.”

That was why Lord Adonis, when he was Transport Secretary in the last Labour Government, developed proposals for a new north-south line.

[Mr MacNeil]

Will the hon. Member give way?

--- Later in debate ---

[Lilian Greenwood]

No. I will not take an intervention at the moment.

As my hon. Friend the Member for Wakefield (Mary Creagh) said on Third Reading of the High Speed Rail (Preparation) Bill:

“High Speed 2 is a project that is in the national interest.”—[Official Report, 31 October 2013; Vol. 569, c. 1179.]

That is why Labour supports HS2 to meet our north-south capacity requirements and provide the connections between the core cities that our regional economies need to thrive.

In that respect, I am happy to declare an interest as an east midlands MP. There are relatively good links from Nottingham to London, which are due to be strengthened by electrification of the midland main line, but our inadequate rail connections to Birmingham and Leeds hold back growth. As the right hon. Member for Chelmsford (Mr Burns) said, increasing capacity is vital, but so are connectivity and journey time improvements. It can take two hours to travel from Nottingham to Leeds by rail, but with HS2 that journey time would be cut by two thirds. Although it is important that we continue to invest in our existing network—the budgets published up to 2020-21 show that investment is not being diverted from conventional lines—high-speed rail will bring real improvements for journeys between cities outside London.

It is important to stress that communities away from the high-speed rail stations also stand to benefit, as more local services can be run on the conventional network. The right hon. Gentleman drew attention to people’s experience of HS1 in Kent. Similarly, compatible trains will run off the new high-speed rail line, enabling faster journey times and direct connections to the new network. I draw hon. Members’ attention to Network Rail’s “Better Connections” report, which examined how additional services can be provided. We need to see more of this sort of work from both Network Rail and local bodies, who should be emboldened as they plan how to maximise the benefits of HS2 as part of the transport devolution agenda.

When the High Speed Rail (Preparation) Bill was in Committee, we took evidence from two academics who both agreed that regional benefits would depend on the quality of the local plans that were put in place, so my first question to the Minister is: what steps is he taking to encourage transport authorities that are not on the immediate high-speed rail route to plan for HS2? We have already seen how high-speed rail can be a catalyst for regeneration in west London. Plans have been outlined by Queens Park Rangers football club to relocate to Old Oak Common in order to create a new 40,000-seat stadium, a project that the developers say will support 24,000 new houses. In Birmingham, the city council has said that the arrival of HS2

“presents a huge opportunity to breathe new life”

into the Eastside area. The new station is planned to be at Curzon Street, which was the original terminus of the first London to Birmingham railway and which last saw long-distance services in the 1850s. If the planners get the design and the connections right, the reborn Curzon Street station promises to be the jewel in the crown of Birmingham Eastside’s rejuvenation. Centro, the west midlands transport authority, has developed a wide-ranging plan for integrating high-speed rail with its Metro system, commuter rail lines and bus services.

My hon. Friends the Members for Edinburgh North and Leith (Mark Lazarowicz) and for Stalybridge and Hyde (Jonathan Reynolds) have touched on the importance of the HS2 line for Edinburgh and Manchester, and as an east midlands MP I can point to other examples of how HS2 can act as a spur to investment. A recent report by consultants Volterra found that development in the immediate vicinity of the planned station at Toton could build 650 to 875 houses and support up to 1,500 administrative jobs. However, more can be done to promote jobs and skills. Can the Minister update us on how many apprenticeships have now been created by HS2, both directly and indirectly? Also, will he commit to the target of creating an apprenticeship for every £1 million spent on the project, as my right hon. Friend the Leader of the Opposition has called for?

[Mr MacNeil]

Will the hon. Member give way?

[Lilian Greenwood]

I will not give way as I have very limited time to speak.

We heard this morning that the Business Secretary has announced plans for a new further education college to educate the work force we need to build HS2. That is welcome news, but we want a proper jobs and skills strategy. Last year, during the evidence sessions for the High Speed Rail (Preparation) Bill, we were told that that document was being prepared. Can the Minister tell us when it will be published? As he knows, the current Crossrail project has begun to train a new generation of highly skilled workers, and a plan must be in place for the HS2 project too.

Labour successfully amended the High Speed Rail (Preparation) Bill to make the Government account for the number of vocational qualifications gained each year. Another Labour amendment that was accepted will compel the Government to account for any underspending or overspending in the project’s annual budget. I note that the Minister’s colleague in the Lords, Baroness Kramer, described the process that we put in place as

“a very vigorous reporting process under which the Government must report back annually and record any deviation from budget, and the consequences of that…which has put in place a very intense scrutiny process around the budget.”—[Official Report, House of Lords, 19 November 2013; Vol. 749, c. 949.]

I am glad that Labour successfully wrote a “vigorous reporting process” into the primary legislation, but the truth is that the Government should have got a grip on escalating costs since the election.

The right hon. Member for Chesham and Amersham (Mrs Gillan) rightly raised concerns on behalf of her constituents about the uncertainty about compensation after the Government’s initial consultation was deemed to be unfair—

[Sir Edward Leigh (in the Chair)]

Order. Will the hon. Lady bring her speech to a conclusion?

[Lilian Greenwood]

Certainly, Sir Edward. It is in the interests of the wider rail network, regional economies and the nation as a whole for the project to succeed. That is why I am proud to support it and why Labour wants to see HS2 delivered on time and within budget.

--- Later in debate ---

[Mr Goodwill]

The hybrid Bill process, which we hope to commence this year, will provide an opportunity for those who want to make representations. As I say, however, 77% of the line in my right hon. Friend’s constituency will already be in a tunnel.

My right hon. Friend also referred to the KPMG report. HS2 will of course not serve all areas of the UK, which is reflected in the figures, and the benefits will naturally be greater in the places directly served by the line. Of course, the analysis does not include the benefits of other investments to boost the transport system. Indeed, the Government will invest £73 billion in the next Parliament, of which only £17 billion will be spent on HS2 and which will help the places not being served by HS2, particularly those in the north of England.

[Lilian Greenwood]

Does the Minister accept the Select Committee on Transport’s recommendation that the Department, HS2 Ltd and Network Rail work together on identifying potential high-speed Britain projects that might be included in the next control period for transport spending?

[Mr Goodwill]

It is vital that other investment happens in both rail and road infrastructure and that account is taken of how that will dovetail with High Speed 2. HS2 will also free up capacity on the existing classic network to allow services to places such as Blackpool or Shrewsbury and, most importantly, for more freight, which many people have missed. Moving freight off the roads and on to rail will free up capacity on our roads.

The hon. Member for Nottingham South (Lilian Greenwood) mentioned apprenticeships. It is envisaged that HS2 will create up to 2,000 apprenticeships during its construction. I was pleased to be with Sir David Higgins and other Ministers at Old Oak Common this morning, when the further education college that will focus on the skills necessary for HS2 was announced. Several locations have been proposed, and I will take on board the suggestion made by the hon. Member for Edinburgh North and Leith (Mark Lazarowicz).

I believe passionately in a successful Britain and in a country that can compete and thrive in the global economy. To achieve that, we need infrastructure that is fit for the 21st century and beyond. Nowhere is that truer than in the context of transport, which is a key enabler of economic growth. Good transport equals good economic conditions. An important way to support British business, to power up the recovery and to put people back in work is to invest in and modernise our transport networks. Growth and prosperity are created by businesses and people having ideas, taking risks, innovating, working hard and creating jobs. A balanced and successful economy requires modern and efficient infrastructure. The Government’s role is to help create the conditions for success by fostering the security, skills and infrastructure that support our economy. By delivering additional capacity and enhanced connectivity, transport infrastructure allows businesses to grow and work together and to access a wide range of customers, suppliers and skilled labour. Business investment is encouraged by the quality of transport links, influencing the decisions of international companies on where to locate and, in turn, increasing investment in the UK.

Transport infrastructure has particular economic significance for UK cities. In 2009, London and the core cities of Birmingham, Bristol, Leeds, Liverpool, Manchester, Newcastle, Nottingham and Sheffield, together with their wider urban areas, contributed almost 50% of UK GDP. The core cities deliver 27% of the UK’s GDP and need to be better connected to thrive and achieve higher levels of growth if they are to close the performance gap between the south-east and the rest of the country—the so-called north-south divide.

Major infrastructure investments like HS2 stand apart from many other decisions made by the public and private sector. They affect the lives of generations of citizens and last centuries, not decades, which makes it important that we make the right decision. In proposing HS2, the Government are firmly convinced that we are investing in a solution that is right for the future economic development of the country, and I am pleased that we have such widespread cross-party support.

HS2 is a transformational project that will enhance rail capacity, connectivity and reliability, helping to underpin economic growth. It will provide the spine for a truly national network, connecting seamlessly to the existing rail network, serving destinations not directly on the high-speed line, releasing capacity on the existing main north-south lines to enable additional commuter, regional or freight services to use the line and freeing up more space on existing trains. It will provide a step change in the capacity of the rail network to accommodate the growing demand for long-distance travel. Our transport system is already under strain, as we have heard today, and will only get worse as demand continues to grow. Alongside the £73 billion that the Government will invest in all forms of transport by 2021, HS2 will help us get ahead of current demand on our core transport network.

HS2 will slash journey times for passengers between our key cities and regions: London to Birmingham will take just 49 minutes, London to Manchester just 1 hour 8 minutes, and London to Leeds just 1 hour 23 minutes. The hon. Member for Edinburgh East knows the current journey times between Edinburgh and London all too well. Scotland will benefit from high-speed services from the moment that HS2 opens. The Y network allows for the seamless transition of trains on to the east and west coast main lines and is expected to slash the journey times between Edinburgh and Glasgow to London by up to an hour, which will benefit the Scottish economy by some £3 billion.

Scotland is an important part of the United Kingdom, and we must not be swayed by those who propose dangerous alternatives. In November last year, the Secretary of State for Transport announced further work into rail capacity and connectivity in Scotland and between Scotland and England. The study’s objective is to identify the broad options available and to provide the evidence base for any future decisions. Work is ongoing and a draft report will be ready in time for the summer recess.

We have taken steps to ensure that the economic opportunities presented by a scheme as transformational as HS2 are fully exploited. The HS2 growth taskforce, ably led by Lord Deighton, has a relentless focus on maximising the economic growth potential of HS2. Lord Deighton was also at Old Oak Common today to see the potential in that part of London. HS2 will be the biggest infrastructure project in Europe and will have a significant direct impact on local jobs, particularly in engineering and construction. Independent research predicts that HS2 is capable of directly generating up to 22,000 jobs in the next five years, rising to a maximum of 50,000 jobs by the late 2020s. In addition, HS2 will support over 100,000 jobs. Phase 1 will create 40,000 jobs in the midlands and London and phase 2 will create at least 60,000 jobs in the midlands and the north. We recognise that the benefits will not just fall into our lap, and the role of the growth taskforce is to identify the work that must be done in advance to ensure that we capture the full potential of this investment for the UK.

In conclusion, HS2, coupled with the record investments we are making in existing transport, is the right solution to the transport challenges that we face. It is about a step change in capacity and connectivity for passengers. It is about unlocking the potential of our major cities and regions, supporting jobs and driving growth. It is about building a dynamic society, a thriving economy and a successful Britain. HS2 is not just a viable proposition for a new railway; it is so much more than a piece of transport infrastructure.