National Infrastructure

Lord Bhattacharyya Excerpts

Thursday 22nd January 2015 Lords Chamber

[Lord Bhattacharyya (Lab)]

My Lords, I thank my noble friend for securing this vital debate. I meet global business leaders regularly and they all agree that Britain must improve its infrastructure in order to attract inward investment. From China to Holland, they see what good infrastructure achieves.

British business also says that we need to improve. Some 60% believe our roads are poor. Five years ago, the cost of road congestion was £2 billion a year. Yet, after the last election, many road projects were mothballed in the spending review. Capital spending on roads fell by around a half. Now the Government boast of major new investment. I welcome these projects, but all it means is that projects such as the A21 are back on again. It demonstrates that we do not think long term. In fact, our basic weakness in this country—whether it is investment in industry or in infrastructure—is all associated with short-termism. This has consequences. As KPMG has said, foreign investors are frustrated because,

“there aren’t projects to invest in immediately”.

We know there is a better way because we put huge effort into creating long-term consensus on projects such as the Olympics or Crossrail. That needs to be systematised in our approach to all infrastructure planning and is why I strongly support my friend Sir John Armitt’s proposed national infrastructure commission. It is, to quote the Spectator, an idea,

“good enough for George Osborne to steal”.

My noble friend has set out how the commission would work. I will make one additional point. Giving an independent body authority to assess infrastructure needs would not reduce the power of elected Governments. Rather, it would give Ministers a power that they do not have already—the power to choose. One of the big problems of the other infrastructure bodies that noble Lords have mentioned is that they become quangos. That does not have to be the case. They become quangos only through the authority given to them by the Government.

Infrastructure assessments would create a better understanding of future needs and lead to stronger medium-term plans under departmental leadership. Ministers would have greater certainty about resources as their party would have been consulted on priorities from the beginning. Now Ministers only have a choice between the plans of their predecessors and further delay. With improved advance planning, Ministers could better set priorities and choose which projects should go ahead. They would get the power to deliver what they need and Parliament would be able to hold them accountable.

Some ideas make us regret that the other lot got there first. Once the National Audit Office, Bank of England independence and the Office for Budget Responsibility were established, they seemed common sense. A national infrastructure commission is the next such proposal. The Government still have time to steal it. I urge the Minister to take this opportunity.