High Speed Rail (West Midlands–Crewe) Bill

Lord Adonis Excerpts

2nd reading (Hansard): House of Lords
Monday 9th September 2019 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Transport (Baroness Vere of Norbiton) (Con)]

My Lords, HS2 is a major infrastructure programme that has had substantial parliamentary support from both Houses over its development to date. The Bill before your Lordships’ House relates to phase 2a of HS2, which would extend the line from the West Midlands to Crewe. Before I move on to the substance of the Bill, I want to draw attention to the Oakervee review and the recent advice received from Allan Cook, the chairman of HS2 Ltd. Noble Lords will be aware that the Government have asked Douglas Oakervee, supported by a panel with a wide range of views, to review HS2. Noble Lords will also be aware of the Statement laid last week by the Transport Secretary regarding advice recently received from Allan Cook. The Oakervee review will assemble and test all the existing evidence, including the recent advice from Allan Cook to allow the Government to make properly informed decisions on the future of the project.

The Transport Secretary made it clear when launching the review that the review itself should not unnecessarily delay HS2. This means continuing with preparatory work, including the enabling work for phase 1, and progressing the legislation for phase 2a. It is important to mention the review and the chairman’s advice, but giving the Bill a Second Reading does not affect the conduct of the review or prejudge its outcome. Indeed, I wish to make it clear that the Bill seeks permissive powers, to be able to construct phase 2a. It does not require the railway to be built.

The focus of this Bill process is addressing the concerns of people whose homes and businesses are impacted by the route. The petitioners seek resolution of their issues and certainty about what will happen. By giving the Bill a Second Reading and allowing the Select Committee to do its work, we can enable petitioners to be heard and their concerns considered.

[Lord Adonis (Lab)]

My Lords, can the Minister tell the House when the report of the review will be published?

[Baroness Vere of Norbiton]

I thank the noble Lord for his intervention, but perhaps I may pick up all the issues surrounding the review later. If he includes that question in his speech, I will cover it in my speech at the end of the debate, when we discuss all those issues.

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[Lord Teverson (LD)]

My Lords, first, I congratulate the Minister on her enthusiasm about this project. It is good to get that positivity at the beginning of this debate and it is good to see this project gradually creeping, inch by inch, northwards out of the south-east and London. But, my goodness, the Government and other stakeholders make this argument difficult for us at a time when the forecast is for an increase in cost of between £26 billion and £33 billion and for the timetable to extend by five to seven years. In fact, I think it is now 10 years since the noble Lord, Lord Adonis, announced this project, if I have got this right.

[Lord Adonis (Lab)]

Nine.

[Lord Teverson]

Nine years. If we are talking about it being completed by potentially getting up to Leeds and Manchester only, not even to Scotland, then that is going to take some three decades—the sort of time between the end of the Second World War and 1975—which puts it in a timeframe of my lifetime. That seems to me to be absolutely ridiculous.

Another difficulty is our track record. For HS1, it took 16 years from the announcement to get the line built, 14 of which were after the Eurotunnel had been completed, whereas France, strangely enough, had managed to organise it so that the railway line was open at the same time as the tunnel—something which we completely failed at in this country.

But, like the Minister, I remain optimistic. Looking internationally, in Europe—to mention a few countries—Germany, France, Spain and Italy have these networks in place. In fact, France started in 1981 with its TGV infrastructure and now has some 2,500 kilometres of track. China, of course, manages to do these things even quicker, for reasons we understand: there is not quite the level of consultation that we have in this country. It now has some 30,000 kilometres of track. I understand that the line from Beijing to Shanghai—over 1,300 kilometres—was completed in 39 months from announcement to operation. I was tempted to recommend in my speech that we open the work up again and that the Department for Transport gets some Chinese contractors to bid for it, but perhaps that might not be the way to do this. The fact is that we are a long way behind in this country. We are talking about something, although now, nine years later, it is about whether we stop or start again. We need to move this project forward.

Why do we need to do that? For me, an up-to-date, fast train infrastructure is just a part of the tools of a modern economy. I do not see how we can get away from that. Yes, we should have started some three decades ago, but we now need to proceed. It is important from an environmental point of view. There are important issues around environmental corridors and ancient woodlands that I in no way minimise, but I believe this is one of the ways that we need to tackle a clean transport strategy for the future, not just for a decarbonised rail system but for cars and automotive emissions in particular. I hope that at some point, when this railway goes north of the border, we will be able to substitute rail travel for air travel. Those are just some reasons why we need to do it.

I know that some people have said that this is an old technology. I have heard that from people in the environmental area whom I truly respect, but these lines are still being built abroad at some pace. It is still part of a new technology. Rail, which started almost 200 years ago, is still an important infrastructure. This is not an old technology. Videoconferencing will not substitute the way forward. I also believe that what the Minister said about capacity is particularly important not just for passengers but for freeing up lines for freight services.

I will take just one other area. I think the Minister said—and other contributors from the Labour Benches in particular have said this—that this railway must be open to all. My experience, not just from HS1, is that not just business customers use these lines. Yes, there are some commuters as well, but it is very much ordinary citizens who use them. HS1, particularly for south-eastern services, has been a vital way for local or semi-regional services to rejuvenate part of the south-east in particular coastal towns and communities. This is important for all these reasons.

The question I really want to put to the Minister is about value for money. During research for this project, I tried to look at the comparative cost per kilometre for other high-speed trains and tracks in other nations, particularly in Europe—clearly, it is far lower in China because of the geography and the lack of consultation there. Even in France, it is estimated that the cost of one of their recent lines was one-sixth per kilometre of what it is in the UK. I can understand why it could be even 50% more, but to be multiples more I do not understand. The fundamental question I ask the Minister, in order to keep the confidence of me, our Benches and the taxpayer is: how can the Government ensure that this project, vital though it is, is delivered at the right cost and at the right time, so that we can keep a modern infrastructure in this country?

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[Lord Adonis]

My Lords, I congratulate the Minister on her opening speech. As I will point out in a moment, there is a big problem with the conflict between that speech, which was full of enthusiasm, and the setting up of a fundamental review, which could lead to the cancellation of HS2. There is a clear left hand/right hand problem in the handling of this project at the moment, which will only serve to add to costs and delays. None the less, the noble Baroness’s speech was excellent and set out the whole case against having a fundamental review of HS2. My noble friend Lord Berkeley who, to my amazement, has agreed to serve on this extraordinary review, is not in his place this afternoon. However, I will recommend that he reads that speech and ceases his work forthwith. I also note the presence in the Chamber of the noble and learned Lord, Lord Walker of Gestingthorpe, who chaired the hybrid Bill committee on the London to Birmingham Bill. With the scale of the work required and the dedication of its members, that was one of the most heroic endeavours which any noble Lord has undertaken in recent times. It showed this House at its very best. I am looking around the Chamber to see who will be volunteering for the next hybrid Bill committee. My noble friend Lord Snape is nodding; maybe he will chair that committee. We would certainly welcome that.

The noble Lord’s work played a very significant part in taking this big infrastructure project forward, as did the work of the noble Lord, Lord Birt, when I became Secretary of State for Transport and devoted myself in a serious way to looking at the case for high-speed rail. He and the noble Lord, Lord Teverson, referred to France, but of course it is 55 years, more than half a century, since the Japanese opened their first and transformational high-speed line between Tokyo and Osaka. They started construction 60 years ago, so we have been taking some to catch up, but it was the noble Lord’s strategic review which put it in my mind that I should be looking very seriously at the case for a high-speed rail network in this country. This is a very good example—and we do not have many, I fear, in this terrible Brexit crisis—of constructive public policy which is factually based, learns from evidence and learns from international experience. As the noble Lord, Lord Teverson said, almost all the rest of the industrialised world, apart from the United States, has high-speed rail, and even the US is halfway through constructing a line from San Francisco to LA.

The noble Lord mentioned China. China has more high-speed rail than the rest of the world put together and has been building a network at great speed. When I was Transport Secretary the Chinese Transport Minister offered to build our high-speed line. He said to me over a very long dinner in the Transport Ministry in Beijing that he would build it for half the cost of the Germans—I assume that he assumed we were about to give a contract to the Germans. I said, “We have this thing called Parliament, Minister, and it has to agree to all this before we can start the construction, but by all means let us have a conversation in a few years’ time”. I regret to tell your Lordships that that Minister is now in jail under a suspended sentence of death for corruption, so although the Chinese are able to construct these projects quickly, there are downsides in the way they conduct their affairs in Beijing. I am glad that I am with your Lordships and not currently at Her Majesty’s pleasure.

The background to this is a great sense of urgency, as the noble Lord, Lord Birt, said, to see that our infrastructure matches that of other industrialised nations, all of which, apart from the United States, have been investing in high-speed rail to link their major conurbations. When the noble Lord, Lord Framlingham, said that this has been conducted without parliamentary consent and scrutiny, that is, of course, palpably untrue. There have been exhaustive debates. The work of the committee of the noble and learned Lord, Lord Walker, and that of the Select Committee in the other place was absolutely exhaustive.

[Lord Framlingham]

I am not sure that I said it had been conducted without parliamentary consent, did I?

[Lord Adonis]

The noble Lord said scrutiny.

[Lord Framlingham]

It is important to be accurate, with great respect to the noble Lord. He said that I said it had been done without parliamentary consent.

[Lord Adonis]

I did not. I said, “without proper parliamentary scrutiny”. There has been massive parliamentary scrutiny of this project. The Motion the noble Lord referred to, which he moved at Third Reading in January 2017, attracted 25 votes while there were 385 votes on the other side, so I do not think anyone can say that it is not the express will of Parliament that is leading HS2 to proceed.

The problem we have at the moment is, as I say, a left hand/right hand problem. On one hand, Parliament has given emphatic consent to this project to continue, and indeed to be authorised in the first place: not just the first phase, which passed this House by 385 votes to 25, and passed the House of Commons by 399 votes to 42—absolutely colossal majorities—but this Bill, extending HS2 from Birmingham to Crewe, was passed in the House of Commons in the middle of July by 263 votes to 17. There has been cross-party consensus and overwhelming support.

The Minister referred, and I assume that her officials were giving her very carefully crafted drafting in this respect, to the work taking place on HS2 as “preparatory work”. There is nothing preparatory about the work being done on HS2 at the moment. The line is being built; more than £5 billion has been spent and more than 1,000 people work at HS2 Ltd in Birmingham. If your Lordships go to Euston, you will see that it is not preparatory work that is leading to the virtual closure of the station, with huge tarpaulins up and big excavation works, but the construction of the railway line. It is right that this should happen, because, unless we start constructing it, it will never be there.

Parliament authorised this project to proceed two years ago. Billions of pounds have been spent, thousands of people are working on it—we expect this work to proceed. It is this that makes the review that has been set up so bizarre. At the same time as Parliament has given express and overwhelming authority for this work to proceed, thousands of people being employed and billions of pounds having been spent, what do the Government do, courtesy of the Prime Minister? They parachute in a fundamental review which is essentially conducting open-heart surgery on a moving patient, if I may mix my metaphors.

This whole project is being constructed, massive public expense is being entered into, and what do the Government do? They announce a strategic fundamental review, looking not just at the management of the project, which is absolutely appropriate to look at because it has not been good enough and is part of the reason we have the cost overruns, but the whole case for HS2, which has been approved by Parliament by majorities of more than 10 to one.

I see the clock is flashing, but I will carry on for a few more minutes because this is Second Reading.

[Baroness Jones of Moulsecoomb (GP)]

The noble Lord, Lord Framlingham, stuck to seven minutes.

[Lord Adonis]

There is not a fixed time limit. I will make two more points if I may.

When the noble Lord, Lord Framlingham, said that the case for HS2 when it started was on speed and not capacity, that was completely untrue. I published the White Paper on HS2 in March 2010, the opening words of which were,

“the Government’s assessment is … That over the next 20 to 30 years the UK will require a step-change in transport capacity between its largest and most productive conurbations … alongside such … capacity, there are real benefits for the economy and for passengers from”—

[Lord Framlingham]

Will the noble Lord give way, since he is determined to take up the time of the House that nobody else, I am sure, will take up? Does he understand that the title of this project is “High Speed Rail”?

[Lord Adonis]

It is a high-speed line, but from the beginning the prime case for HS2 has been additional capacity. I was reading the opening words of the White Paper, which continue,

“alongside such additional capacity, there are real benefits for the economy and for passengers from improving journey times and hence the connectivity of the UK”.

My final point is about the network effects which my noble friend on the Front Bench referred to. HS2 will be a crucial part of a new and upgraded national transport network. It will link into Crossrail in London through its junction at Old Oak Common; it will link in with three airports—Heathrow, which is close to Old Oak Common, Birmingham Airport, through Birmingham International, and Manchester Airport; it will link in with HS3 going east-west; it will free up huge capacity for freight and metropolitan commuter services into all of those three major conurbations.

The right thing for this House to do is give emphatic support to this Bill today. We cannot keep pulling up by the roots big infrastructure projects when they are being half-built. If we do it with this one, no one will ever believe that we will do something as big as this as a country again.

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[Lord Bradshaw]

I am aware of the advisory speaking time. It was imposed on us by the Government’s edict.

[Lord Adonis]

My Lords, regardless of what the noble Lord has said, I think that it is quite unacceptable that speeches on a matter of such importance should be restricted in this way when in fact the House is under no time constraint whatever, except one artificially imposed by the Government.

[Baroness Bloomfield of Hinton Waldrist]

The advisory speaking time is in deference to colleagues because we have a number of other issues to discuss later on this evening.

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[Lord Greaves (LD)]

My Lords, I start by saying that I agree with pretty well everything that everybody—except for one noble Lord—has said so far; I will try not to repeat those things. I say gently before beginning that I have looked in the Companion and I cannot find anything at all about the ability of the Government to impose arbitrary time limits on speeches beyond the normal time limits for Second Reading debates. If we are to do this in future, it is something that should be discussed.

It is nearly 10 years since all this started, and where are we? I am tempted to say that we have got as far as digging up cemeteries. I accept what the noble Lord, Lord Adonis, said that there is rather more work than that going on, but it is taking an inordinate amount of time. The proposed route for phase 2a, which we are discussing today, was first published four years ago. I compare this not with China—as a place where things can be done without asking people what they think—but with France. I go to the Pyrenees most summers and I watched the construction of the line from Tours to Bordeaux, extending the existing TGV line, which seemed to be done in a small number of years. I have travelled on it twice in the last two years; I have to say that not only does the line seem okay but so does the new TGV, which I travelled on, there and back, two or three weeks ago.

Last Friday, going home I travelled on one of the new Azuma trains from Kings Cross to Leeds. In comparison—from the point of view of the ride, the acoustics and, of course, the infamous seats—I felt that I had gone back 40 years. Then I reminded myself that the Azumas were ordered and specified by the Government themselves, which I think says something.

All we get are reviews and promises of delays. I am reminded that the Victorians effectively built the mainline network in England in less than a quarter of a century. We seem to take a very long time indeed to do these things. A lot of the opposition to HS2 is about the competence, efficiency and effectiveness of the people doing it: the Government, HS2 Ltd and everybody else. We must distinguish between the need for the line—the project itself—and the need to improve the way these things are done. People attacking the way that it is being done—alleged efficiency, overspends or whatever—is not an argument against building the line; it is an argument to say that we need to do things better in this country.

The proposal that we are talking about today—extending to Crewe—is a relatively small part of what I hope will, in the future, become a substantial network connecting the main regional centres of the country. We need to start thinking about it in those terms. It is not a question of a line from Birmingham, Manchester or Leeds to London, with all this London-centric thinking. We should be thinking about a network that connects all the major cities in the area.

As far as extending it to Crewe is concerned, it would be a very good thing for people in Lancashire and the north-west, as well as, I would hope, people in Scotland. It would allow trains from the new HS2 line to run further north, just like the train I caught to Lourdes the other day—I have to say I was going there for the mountains and not for other purposes. That train slowed down after Bordeaux and became a normal fast express. Then, when it got past Dax, it slowed down a lot. The advantage is that people can do a lot of the journey at high speed and then continue to other places. When the new line to Crewe opens, as I hope it will, it should be the basis of Scottish services as well, not just services to the north-west.

[Lord Adonis]

It is integral to the plan that there will be through services to Glasgow and Edinburgh.

[Lord Greaves]

Absolutely—but these things need to keep being said, because people who are not served by the particular line concerned say all the time, “It’s no use to us”. People in the north-east are saying that—quite wrongly, because the proposal, especially when we get to phase 2b and so on, is to run services through to the north-east.

I live in Colne in Lancashire, at the end of the worst branch line in the north of England, and I am acutely aware that when the Prime Minister comes to the north and promises a fantastic new HS3—or HS15—or a northern power something or other, over the short distance between Manchester and Leeds, it is no use to us. There may well be merit in building a new high-speed line across the Pennines between Leeds and Manchester, but it is not the top priority for people in the north of England.

What people in the north of England want is an efficient network on the existing lines between their cities and towns. The geography of the north of England consists of a series of scattered towns and cities that need a network connecting them all, not just one line between one big city and another, which might perhaps stop at Bradford but nowhere else in between.

What we in the north of England urgently need as a priority is upgrading existing trans-Pennine routes, reopening Colne to Skipton to allow a new freight line as well as local services, reopening Woodhead to provide Sheffield and Manchester with a good service that way, and electrification of the substantial network. That is what we should be spending money on, not a short vanity project—it would not exist in the short term anyway; it would take 20 years—between Manchester and Leeds. The Bill, however, has my total support.

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[Baroness Vere of Norbiton]

I thank the noble Baroness for her intervention. I suspect that we are not going to wholly agree on this matter, but if I can do anything at all to bring us closer together, I shall be pleased to do so. I believe that earlier the noble Baroness mentioned Whitmore Wood, which I have also had the pleasure of seeing. The Select Committee in the other place did consider whether the project should tunnel under the woodland, but it decided that that did not represent value for money. An assurance was given to reduce the impact on the ancient woodland by 0.5 of a hectare. However, the Select Committee of your Lordships’ House may look at this issue again.

[Lord Adonis]

My Lords, can the noble Baroness answer the question put to her on precisely when the review will be published?

[Baroness Vere of Norbiton]

I cannot do that with great precision. I believe that the noble Lord, Lord Rosser, mentioned that the original length of the review was six weeks. We should take that period in the context of a couple of months or a month. It is not six weeks on the dot, from day one to the end, although it may well be. The point is that the panel has had to be set up and appointed and the terms of reference were published on 21 August. Given that, I will stick to the autumn of 2019. As noble Lords will be aware, it is a bit chilly outside now, so autumn is coming. However, I probably cannot go much further than that. As I say, the review will be published shortly or in due course. No doubt noble Lords will soon ask me about this again in Oral Questions. However, it is under way and it is a short review.

I want to cover briefly the issue of tenant compensation, which I realise is important to the noble Lord, Lord Tunnicliffe. There will certainly be an opportunity to discuss it further before we reach the next stage of the process. Due to the route of the proposed scheme, phase 2a affects mostly rural residents, many of whom are tenants of their properties or land. Most types of tenants who will be impacted by the scheme are already provided for under existing compensation law, but where they are not, the Government are able to use their flexible non-statutory arrangements to provide support. That is probably not sufficient detail for the noble Lord, and I agree that we will take the issue further forward.

I want to comment briefly on a comment made by the noble Baroness, Lady Kramer, about British Steel. I understand the concerns of the noble Baroness, but none the less the Crown Commercial Service steel procurement policy requires bidders to outline their steel supply plans and will award all steel contracts through open competition.