HS2 Funding Referendum Bill

Lilian Greenwood Excerpts

Friday 23rd January 2015 Commons Chamber

[Lilian Greenwood (Nottingham South) (Lab)]

Although I count myself as a supporter of HS2, I congratulate the hon. Member for Christchurch (Mr Chope) on securing a Second Reading for his Bill. I know that he has a long-standing interest in these issues as a former shadow transport spokesman, and it is always important to debate how public money—taxpayers’ money, if you will—is spent and to subject major public projects to close scrutiny.

The hon. Gentleman has said outside this place and has contended today that the House has not had an opportunity to scrutinise HS2’s funding and the costs and benefits of the project, but speaking as a veteran of the Public Bill Committee that considered the High Speed Rail (Preparation) Act 2013 and as a Front-Bencher during the introduction of the phase 1 hybrid Bill, I am not sure I can follow him that far. The truth is that the House has already imposed tighter spending controls on HS2. I submitted an amendment to the preparation Act that was accepted by the House and introduced a duty on the Government to declare any overspend, against both the annual and the total budget. The noble Lady Baroness Kramer conceded in the other place that that was

“a very vigorous reporting process under which the Government must report back annually and record any deviation from budget…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.]

Of course, there can be no room for complacency. Delays after the election and substantial cost increases have not been to the Government's credit, and I would agree that the Government, perhaps distracted by their rail franchising fiasco, failed to communicate properly the reasons why the project is necessary. Of course, the overall figure, the £50.1 billion, includes a sizeable contingency buffer—as well as funds for new trains, some of which will run on existing lines—but that is not money that we want to see spent. We need to have a laser-like focus on bringing down the project’s costs. There cannot be a blank cheque for this or any other project.

Nevertheless, I do not see the case for such a dramatic course of action as that proposed in the Bill. We did not have a referendum on Crossrail, which is due to cost £16 billion, nor did we have a referendum on HS1, which cost £6 billion. I am happy to be corrected, but I am not aware that the hon. Member for Christchurch called for such a referendum at the time. On a day when an important Transport Committee report called for

“a fairer allocation of rail investment across the country”,

it would seem very strange to set such a precedent for a railway that will primarily benefit the midlands and the north. Moreover, a referendum would itself cost £85 million, given that that was the cost of the AV referendum.

Finally, and importantly, the phase 1 Bill Committee is now deep in its work. Three days a week, in Committee Room 5, mitigation is being agreed and the project is being improved. I cannot accept that further and prolonged uncertainty would benefit people on the route. Labour Members—albeit with one or two right honourable exceptions—believe that, provided costs are kept under control, HS2 will bring enormous benefits to the country.

[Mrs Gillan]

As was expected, the hon. Lady is in favour of HS2 and against the Bill, but would she care to tell us at what cost point her party would decide to abandon the project? She said that we must keep costs under tight control, but given that she must now know what the limits are, will she share them with the House? I think that that information is important.

[Lilian Greenwood]

The right hon. Lady has, of course, been a strong advocate on behalf of her constituents, and I know of her long-standing opposition to the hybrid Bill. Labour’s position is clear: we support HS2. It was a Labour proposal, and we want that Bill to be passed. However, I can do no better than quote what was said by the hon. Member for Christchurch, who, when he was an Opposition Front Bencher 10 years ago, said in the context of Crossrail

“no serious prospective Government—such as we are—would be prepared to write a blank cheque for any project, however desirable people might think it is.”—[Official Report, 7 April 2005; Vol. 432, c. 1607.]

A budget has been set out for this project, which includes a significant contingency element. We must maintain our focus on ensuring that the project is delivered within that budget, and, I have said, it would be preferable for the contingency money not to be spent.

[Mr Chope]

Does the hon. Lady’s support for the project extend to the £20 billion for Crossrail 2?

[Lilian Greenwood]

I have already said that the necessity for Crossrail 2 and whether it would attract a favourable cost-benefit analysis should be investigated. Crossrail needs to be considered on its merits, as do all other investments in transport infrastructure. A case must be made on the basis of the benefits that it can deliver and whether it represents a good use of taxpayers’ money.

[Mrs Gillan]

The hon. Lady said that my hon. Friend the Member for Christchurch (Mr Chope) had not called for a referendum on Crossrail 1. I understand that Crossrail 1 is funded partly through the rates and partly by businesses in London, and not entirely by the Treasury and the taxpayer’s purse.

[Lilian Greenwood]

I agree. Nearly all rail projects’ capital costs are publicly funded, although there are sometimes opportunities for private investment. I have no doubt that there will be opportunities to attract such investment in, for example, over-site development of stations in connection with HS2. However, when we need investment in our infrastructure, we must be prepared to commit public money. As I have said, I do not think that we should set a precedent in this regard.

HS2 will unblock the congested arteries of our ageing rail network, will provide vital additional capacity, and will transform the connections between the great cities of the midlands and the north. Our message to both the Government and HS2 Ltd is clear: take the phase 1 Bill to Third Reading, present the proposals for phase 2, and get this important project back on track.