Infrastructure Bill [HL]

Lord Adonis Excerpts

Wednesday 5th November 2014 Lords Chamber

Moved by

[Lord Adonis]

86A: Before Clause 17, insert the following new Clause—
“National Infrastructure Commission
There shall be an independent National Infrastructure Commission.”

[Lord Adonis (Lab)]

My Lords, I thank Sir John Armitt for his excellent work in leading the independent review for the Labour Party on long-term infrastructure planning. I also thank Robbie Owen of Pinsent Masons for his invaluable work in preparing a draft national infrastructure Bill since the publication of the report. We have been consulting on the draft Bill and have received a positive response from across the infrastructure sectors. The draft Bill runs to 26 pages. Rather than propose all 26 pages as amendments, the House will be grateful that I have purposefully kept this proposed new clause concise and to the point. However, if the Minister tells us that he is prepared to accept the principle of an independent infrastructure commission, we would be delighted to discuss the provisions of the draft Bill with him with a view to subsequent legislation on a cross-party basis.

The case for an independent infrastructure commission is clear. The UK has historically, over many decades, underinvested in key infrastructure, which is why the World Economic Forum ranks the UK 27th for the overall quality of infrastructure in its 2014-15 Global Competitiveness Report. Our long-term infrastructure planning is weak. There is far too much stop-start decision-making and investment, and forging a political consensus in key areas such as airports and energy has proved notoriously difficult. The role of an independent commission would emphatically be not to replace Government, Parliament and the democratic process, but to inform and strengthen them. Under the Armitt plan, an independent national infrastructure commission would carry out an evidence-based assessment of the country’s infrastructure needs over a span of 25 to 30 years, focusing on nationally significant infrastructure —as defined by the Planning Act 2008—and consulting relevant stakeholders. The key economic infrastructure sectors—energy, transport, water, waste and tele- communications—would be considered in parallel, allowing the interdependence between sectors to be thoroughly examined. Projections of economic growth, population and technological change would inform this cross-sector approach. Environmental issues and obligations would be respected and recommendations made by the commission would need to be consistent with achieving the UK’s long-term climate change targets. The result of the commission’s considerations would be a national infrastructure assessment submitted to the Chancellor, who would have a statutory duty to bring it before Parliament within six months, accompanied by any amendments that the Government might propose. We anticipate that the first assessment would be produced within three years of the establishment of the commission.

The national infrastructure assessment would therefore come forward with the Government’s full authority. Ministers would not be bound by the independent commission but changes made by the Government to the commission’s assessment would be clear and transparent and subject to full public and parliamentary debate. The plan would be fully updated every 10 years but it would be open to the Government or a new Government to seek earlier reconsideration, again on an open and transparent basis. The assessment would be debated and voted upon in both Houses. If approved, there would then be a 12-month period in which individual government departments would be required to produce sector infrastructure plans outlining the specific schemes and projects that the Government would promote to meet the needs identified in the assessment. Proposed sources of funding, timeframes for project implementation and preferred delivery vehicles will be required in the plans in order to provide real delivery momentum, credibility and confidence for investors.

Before a vote on each sector plan in Parliament, the commission would provide a statement commenting on the consistency of the Government’s proposals with identified infrastructure needs, highlighting areas where departmental sector plans fell short, which together with the 12-month deadline for producing the plans would act as a significant new discipline for Government to get on with implementation and delivery. Together these sector plans would form a national infrastructure plan for the UK—not a wish list like the current national infrastructure plan, but a statement of priority national projects with key milestones, delivery targets and vehicles and sources of funding set out in each case.

We have shown in recent years that we can deliver on major national infrastructure. The Olympics were delivered on time and on budget and the Crossrail project continues to progress well. Financial institutions are generally keen to invest in British infrastructure so long as risk and return are well balanced, but in key areas decisions have not been timely and investment has been poorly planned, inefficient and inadequate. To take just transport, the history of the railway system and airports in the south-east of England over the past 50 years is a running commentary on the failure of long-term strategic planning. There is a real danger that energy, water and flood prevention infrastructure could soon become so. The problem clearly lies with the quality and timeliness of planning and political decision-making as much as with the delivery. The current Davies commission on airports is a kind of mini-infrastructure commission, set up precisely because of the failure to resolve airport capacity issues in south-east England over the past 15 years under both this and the last Labour Government. We are proposing a similar approach applied more broadly.

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[The Parliamentary Under-Secretary of State, Department for Communities and Local Government (Lord Ahmad of Wimbledon) (Con)]

My Lords, first, I thank the noble Lord for his amendment, which allows us to outline again the Government’s position on national infrastructure. I must admit that when he started talking about the Armitt review, I was concerned for a moment, as I was settling down, as to whether the word was Armitt or Ahmad. That threw me a bit—but we are clear which report we are talking about here.

We believe that the national infrastructure plan already delivers unparalleled levels of investment. The Government recognise—and the noble Lord acknowledged this—that infrastructure projects have been delivered on time and on budget. He referred to the Olympics. It is noteworthy that the person responsible for delivering the Olympics on time and on budget is the current Minister for Infrastructure in our Government, my noble friend Lord Deighton. I believe that all noble Lords will agree that he has great expertise in this area.

Of course the Government recognise the importance of the long term in looking at infrastructure investment. Investing in infrastructure is a central part of the Government’s long-term economic plan to build a stronger and more competitive economy. For this reason, the Government have introduced the national infrastructure plan, which has brought together our approach to investing in energy, transport, telecoms, water and waste networks into one place. This has brought a step change in delivering UK infrastructure. We are introducing an ambitious new energy strategy to incentivise additional electricity capacity for the UK and support low-carbon electricity generation. In road and rail networks, we are seeing new investment at rates not known for several decades. Our plan provides sound justification for infrastructure projects that have secured buy-in from a broad range of stakeholders.

We have set out long-term capital settlements to align with the national infrastructure plan. These commitments have led to new investment out to 2021, in sectors such as roads and flood defences, and long-term funding plans for projects such as High Speed 2. This has all helped to ensure stability and continuity of infrastructure investment in the decades to come.

I turn to the issue of the independent infrastructure body. The Government disagree with this amendment and have reservations about introducing an independent body without a clear understanding of the impacts of the change. Failure to understand this would create greater uncertainty and risk the successful delivery of UK infrastructure. We believe that resourcing requirements to support a commission have not been fully established or costed. Establishing a new authority for infrastructure would involve significant complexities and would distract from the business of providing the infrastructure that the country needs now and in the future.

It is essential that the Government focus on delivery. The central issue is to ensure that the UK has a robust plan to address the challenges facing our networks in the future. The Government have developed a strategy to meet current and future demand through the renewal of existing infrastructure and to grow a global economy with modern infrastructure networks. In doing this, we have sought to address climate change and energy security. This investment is vital for future economic growth. However, it is not clear how introducing a national infrastructure commission would address these pressing issues.

The Government already have a strong track record in major infrastructure delivery. While a national infrastructure commission is an untested and, as yet, unproven idea, the Government take delivering infrastructure extremely seriously. The latest infrastructure pipeline shows that £383 billion of investment is planned for infrastructure networks over the course of the next Parliament and beyond. The noble Lord mentioned specific transport projects. We have had 45 major road and local transport projects since 2010, and the start of construction on flagship projects, such as Northern Hub and the Mersey Gateway Bridge, as well as substantive progress on Crossrail, provides good examples. In addition, more than £45 million has been invested in electricity generation networks between 2010 and 2013 and contracts have already been signed under the electricity market reform, with a further allocation currently under way. The UK is rated as the most energy-secure country in the EU and is fourth in the world.

I believe that we are in a good place when it comes to infrastructure and investment in infrastructure for the current, medium and long term. With the reassurances I have provided, I hope that the noble Lord is minded to withdraw his amendment.

[Lord Adonis]

My Lords, I am grateful to the Minister for his response. He offers me a tantalising prospect that, if we were to rename the Armitt report the Ahmad report, then he might be prepared to accept the amendment. I offer him that potential deal across the Dispatch Box, though Sir John Armitt might want some hybrid name attached to the report in consequence.

I am disappointed by the response of the noble Lord. In many other areas, such as fiscal and competition policy, we have independent bodies which advise Ministers. Looking at the history of this country over the last two generations, it is clear that we have had serious problems in the planning of our national infrastructure. This is not just in bringing objective evidence to bear on the debate, but in the establishment of cross-party consensus in areas of high priority. We believe that a commission of this kind could significantly contribute to the process.

The area I know well—transport—is a testimony to the problems of failure to address long-term infrastructure planning on an independent and consensual basis. Airports policy has been a yo-yo since the 1960s. There has been stop-start on Maplin, then at Heathrow, and it has taken 15 years to make decisions about increased airport capacity in the south-east of England. Electrification of the railways has been delayed for the best part of a generation because of the lack of any long-term plan. The noble Lord mentioned HS2 and I am glad that a cross-party consensus has been reached on it. However, it was only five years ago—a generation after most of continental Europe and large parts of Asia started to develop high-speed rail networks—that we even started to consider the potential for high-speed rail in this country because there was no medium and long-term planning.

The Minister mentioned roads and the roads programme. As many noble Lords with major road developments in their areas know, this is a classic case of stop-go. Every time there is a downturn, there is a massive slashing of projects, only for them to have to be revived again a few years later at significant additional expense because there is no agreed medium-term plan. In 2010, when the present Government came in, there were huge reductions in the roads programme for strategic roads, which have since had to be partly reinstated. A system of national infrastructure planning of the kind that we propose could only strengthen the bringing to bear of objective evidence, strengthen cross- party consensus and give a louder voice to capital spending and infrastructure projects within the government machine itself.

The noble Lord referred to the resourcing requirements of the commissioners, but they would of course be a fraction of the cost of the projects themselves and there are already significant staff who develop infrastructure in individual departments. This would enable them to be pulled together to operate more effectively with some clear central direction.

It is only a matter of time before a commission of this kind is established. As I said, in so many other areas of critical policy, the bringing to bear of expert advice reporting to Ministers and Parliament to provide a basis on which decisions can be taken has been a course that has been followed. I believe it will be followed in due course in the case of infrastructure. I would therefore like to test the opinion of the House.

--- Later in debate ---

Moved by

[Lord Adonis]

86B: Before Clause 17, insert the following new Clause—
“National infrastructure projects: new towns
(1) The objects of a development corporation established for the purpose of creating a new town shall be to secure the physical laying out of infrastructure and the long-term sustainable development of the new town.
(2) In this section, “sustainable development” means managing the use, development and protection of land and natural resources in a way which enables people and communities to provide for their legitimate social, economic and cultural wellbeing while sustaining the potential of future generations to meet their own needs.
(3) In achieving sustainable development, development corporations should—
(a) positively identify suitable land for development in line with the economic, social and environmental objectives so as to improve the quality of life, wellbeing and health of people and the community;(b) contribute to the sustainable economic development of the town;(c) contribute to the cultural and artistic development of the town;(d) protect and enhance the natural and historic environment;(e) contribute to mitigation and adaptation of climate change consistent with the objectives of the Climate Change Act 2008;(f) promote high quality and inclusive design;(g) ensure that decision-making is open, transparent, participative and accountable; and(h) ensure that assets are managed in the long-term interest of the community.(4) In this section “infrastructure” includes—
(a) water, electricity, gas, telecommunications, sewerage and other services;(b) roads, railways and other transport facilities;(c) retail and other business facilities;(d) health, educational, employment and training facilities;(e) social, religious, recreational and cultural facilities;(f) green infrastructure and ecosystems;(g) cremation and burial facilities; and(h) community facilities not falling within paragraphs (a) to (f); and“land” is defined as including all the matters set out in the definition of “land” in Schedule 1 to the Interpretation Act 1978, and also housing including (where the context permits) any yard, garden, outhouses and appurtenances belonging to, or usually enjoyed with, the building or part of building concerned.”

[Lord Adonis]

My Lords, the building of new towns and major urban extensions is a critical national issue in the face of Britain’s acute housing shortage. The designation of Ebbsfleet as a new town and the recent Wolfson Prize competition for a new town scheme demonstrates the enthusiasm and capacity that there is for developing the concept in modern conditions. All three of the major parties in the House are committed to new town or garden city developments, and I take these to mean the same thing, given the importance of green and sustainable development as part of any new town or urban extension.

This amendment intends to capture the spirit of the post-war rebuilding of the country that was spurred on by the original New Towns Act 1946, creating places that today are part of the fabric of our country, such as Milton Keynes, Stevenage and Welwyn Garden City. However, although previous new town legislation provided powers to deliver new towns, the towns that were built did not always conform to the highest design and quality standards. The objectives set out in this amendment update the existing legislation in the New Towns Act 1981—which has barely been used—to ensure protection for the natural and historic environments, to require high-quality and inclusive design and to contribute towards a low-carbon future. The aim is that no part of a new town will be eligible for the Carbuncle Cup, an annual award from Building Design magazine for the ugliest building in the United Kingdom completed in the last 12 months.

Developing places in which people love to live is a topic gathering increasing attention as we look to substantial new settlements. The winner of this year’s Wolfson Prize, David Rudlin, proposes a six-point “social contract” for the development of garden cities. The participative decision-making proposed in this amendment is reflected in Mr Rudlin’s winning entry, which proposes that existing towns and cities should be able to bid for new garden city status to build substantial high-quality and sustainable urban extensions. This includes not only high quality standards, but the requirements that new garden cities include major institutions of learning; that they be well connected by public transport and cycleways; and that for every acre of land developed, another will be given back to the city as accessible public space, including forests, lakes and country parks.

When my noble friend Lord McKenzie of Luton raised in Committee this issue of promoting sustainable and liveable communities in new towns, the government response was odd. The noble Baroness, Lady Stowell, said it was “absolutely essential” that good-quality design and the other key elements of the amendment—open decision-making, cultural and artistic development, and enhancement of the natural and historic environment—be built into new town development, but the Government were worried that to say so explicitly in statute would be “unhelpful”. But how can it be unhelpful to specify things that are so essential but are not in fact contained in the New Towns Act 1981? If they are not specified, that could lead to what David Rudlin calls “mere dormitory suburbs”.

When the Government say it is unhelpful to specify essential features of new towns, I believe they are confusing being concise with being brief. Being concise shows an excellent grasp of the issue, while being brief can demonstrate a lack of understanding of an issue. This amendment clearly and concisely prescribes the factors that development corporations should consider to achieve sustainable development, from environmental considerations to economic ones. The amendment is therefore helpful, not unhelpful. If the Government are to object on the grounds of brevity, I ask them: which factors set out in the amendment do they think should not always be considered when building sustainable new communities? I beg to move.

[Lord Jenkin of Roding (Con)]

My Lords, I will be brief. The two amendments—the one we have just voted on and the one just moved by the noble Lord, Lord Adonis—are starred amendments. It is treating this House with contempt to raise two serious issues at the very last moment for consideration in today’s business. I am not in the least surprised that in the previous debate only the noble Lord and my noble friend Lord Ahmad spoke. No one had a chance to consider what it was about and take advice. Now we have another one.

This is an important issue. As a former Environment Secretary, I dealt with planning matters, and have lived near some of the post-war new towns. I will not weary the House by repeating what I said in Committee about the appalling mistakes made, for instance in Harlow, which turned out to be a byword for the misery of large numbers of citizens who moved from the city centres out to a town that was full of lakes, parks and everything but failed to have any sense of community at all—certainly for decades. I do not in any way underestimate the need for substantial improvements in the system, and I like to think that in recent developments there have been considerable improvements; we have not had a repetition of those experiences.

However, these are important matters and one has to ask oneself: why did the noble Lord leave it until only yesterday to table this amendment and asking my noble friend to give a considered view of the matters that he raises in it? I say again: it is treating this House with contempt.

[Lord Adonis]

I should point out to the noble Lord that this amendment was tabled and debated in Committee.

[Lord Jenkin of Roding]

Why leave it until the last moment on Report? Why did he not put it down it a week or 10 days ago, when most of the other amendments were tabled, so that people would have a chance to look at it and consult? That is my complaint. I have great respect for the noble Lord’s ability, but sometimes he gives the impression that he walks on water.

[Lord Ahmad of Wimbledon]

My Lords, I thank my noble friend for his intervention and the noble Lord for his amendment. I feel somewhat spiritually awakened by my noble friend’s final comment about walking on water. I hope I can provide clarity on why the Government are not in a position to accept the amendment at this time.

I shall start with our common ground. I agree wholeheartedly with the noble Lord, Lord Adonis, that creating well designed, sustainable communities should be at the heart of any new development. In Amendment 86B, tabled by the noble Lord, two main objectives are proposed for a development corporation to be established for the purpose of creating a new town and for the physical laying-out of infrastructure and long-term sustainable development of the new town.

However, I do not think that prescribing the objects of a new town development corporation in detail would help to achieve that objective in a way that allowed for sufficient flexibility locally. There is much to be said for the simplicity of the current objective of new town development corporations, as indeed set out in statute: to secure the laying out and development of the new town.

The amendment proposes that sustainable development should be included in the objects of new town development corporations. Let me emphasise that the Government strongly support the principle of sustainable development. Indeed, that principle is central to the document National Planning Policy Framework, which provides a clear view of what sustainable development means in practice. We believe that creating an additional statutory definition of sustainable development could serve to reduce that very clarity.

I note that no new town development corporations have been created since 1970. However, I am clear that any future new town development corporations, as well as urban development corporations, such as the one the Government are proposing to establish at Ebbsfleet, should have a strong focus on securing sustainable development in a way that reflects local circumstances and needs. I look forward to Her Majesty’s Opposition supporting the creation of the new town at Ebbsfleet, as we seek to establish it in another Bill.

I hope that the clarity I have provided, with brevity, gives the noble Lord sufficient comfort to withdraw his amendment.

[Lord Adonis]

My Lords, I am grateful to the noble Lord for putting on record the Government’s commitment to sustainable development and high-quality design, which is of key importance.

If I may, I shall respond further to the noble Lord, Lord Jenkin. The amendments were tabled on Monday, which was the day before yesterday, so there was certainly time for noble Lords to engage fully with the issues—and, indeed, for the noble Lord to have read the Armitt report, which was published some months ago. It is not a recent document, by any means.

[Lord Jenkin of Roding]

I am sorry—

[Lord Ahmad of Wimbledon]

They say, “Once a Whip, always a Whip”. We are on Report, and no other interventions would be appropriate.

[Lord Adonis]

I was very willing to give way to the noble Lord, because I did mention him. I think that I had a right of reply to his points, given that he said there had been almost no notice of these amendments.

Amendment 86B was tabled by my noble friend Lord McKenzie in Committee—it is exactly the same amendment. The reason we regard it as so important that the law takes account of the issues specified in the amendment, that sustainable development should,

“contribute to the cultural and artistic development of the town … protect and enhance the natural and historic environment … promote high quality and inclusive design … ensure that decision-making is open, transparent, participative and accountable … and ensure that assets are managed in the long-term interest of the community”,

and so on, is precisely because of the point that the noble Lord, Lord Jenkin, raised: our last experience of developing new towns in this country was not wholly happy. There have been many very positive elements to the new towns and most of them now function extremely well. However, in some cases the quality of the initial design was not high enough. The Minister said that no new town development corporations have been set up since 1970, but we are just about to begin the process of developing new towns and major urban extensions again. The Government have named Ebbsfleet as the first. It is very likely that others will follow, given the need at least to double the rate of national housebuilding. Therefore, it seems to us, and probably to most people in the House, that having a proper set of criteria for the development of new towns is timely. If it cannot be done in this Bill—and we do not intend to press this amendment today—it should be done before we embark on the next new era of garden city development. I beg leave to withdraw the amendment.

Amendment 86B withdrawn.