Oral Answers to Questions

Lord McLoughlin Excerpts

Thursday 12th September 2013 Commons Chamber

[Mrs Siân C. James (Swansea East) (Lab)]

5. What the current budget is for High Speed 2.

[The Secretary of State for Transport (Mr Patrick McLoughlin)]

The spending round of 2013 set a long-term budget for the delivery of HS2 of £42.6 billion. That is made up of £21.4 billion for phase 1 and £21.2 billion for phase 2. The budget includes significant contingency provision of £14.4 billion. That budget is being tightly monitored by the Government and we are confident that the railway will be delivered for less than that figure. I have set HS2 Ltd a “target price” for phase 1 of £17.1 billion.

[Susan Elan Jones]

France, Germany, Japan and many other countries have benefited hugely from their high-speed rail links, and many of us are fed up with a largely London-based commentariat that is seeking to stop a north-south high-speed rail link for this country, but does the Secretary of State agree that, if we are to build a better consensus, it is extremely important that the budget figures he referred to will be both monitored and met?

[Mr McLoughlin]

I completely agree with the hon. Lady. We have a good record of delivering big projects on time. The Crossrail scheme, which is being built at the moment, involves more than £14 billion and is the largest construction project in Europe. It will greatly enhance transport in London; it is essential, but HS2 is essential for the rest of the country.

[Mrs Siân C. James]

The Secretary of State has outlined the significant budget of the HS2 project, but what assurances can the Government give me and the people of Swansea East that they will give full consideration to the proposals of the Howard Davies commission and the benefits of a future high-speed rail link between Cardiff and Heathrow airport?

[Mr McLoughlin]

I do not want to anticipate or prejudge what the Davies commission report will say. The commission is very important and its interim report is due by the end of the year. The hon. Lady makes a point about infrastructure and the rest of the railway network. It is essential that we carry on investing in rail services in other parts of the country and, over the next spending review, Network Rail plans to spend some £37.5 billion on the current railway network.

[Mrs Cheryl Gillan (Chesham and Amersham) (Con)]

The Secretary of State was forced this week to launch a so-called fightback with a piece of expensive and self-justifying research from KPMG on HS2, because he has lost control of the budget and of the arguments, including the need to travel at speeds in excess of 250 mph. It is about time that we replaced HS2 with a thoroughly researched and prepared integrated transport strategy for all regions, including Wales, and covering air, road, rail and communications links. When will he cancel that project and produce a decent overall strategy?

[Mr McLoughlin]

I am not sure I was forced to do anything, but I was asked by the Public Accounts Committee to do proper research and to back up the case for HS2. I dare say that if yesterday’s report had come out negative, all those people who are against HS2 would have been shouting it from the rooftops. Because it came out positive, they are opposed to it.

[Mr Alan Reid (Argyll and Bute) (LD)]

The KPMG report showed that every region of Britain will benefit from plans for HS2 to go as far as Leeds and Manchester, but Scotland and the north of England would benefit even more if the lines extended to Glasgow, Edinburgh and Newcastle. How are the Secretary of State’s discussions with the Scottish Government progressing in that regard?

[Mr McLoughlin]

I am prepared to have the meetings with the Scottish Government. I announced last October that we would be looking to take the line to Scotland. That work is ongoing.

[Mrs Louise Ellman (Liverpool, Riverside) (Lab/Co-op)]

The Secretary of State referred to funds to be invested by Network Rail in the classic lines. Will he give an assurance that, in addition, there will be sufficient funds to invest in new passenger and freight services on lines freed by the development of HS2?

[Mr McLoughlin]

Indeed. The hon. Lady who chairs the Transport Committee embarks on an important point. One key problem that any future Government will face is that of capacity on the network, as well as speed, and this line is also very much about capacity. If we made the improvement that some people suggest on the present line, it would lead to capacity increases of about 53% between London and Birmingham. HS2 will lead to a capacity increase of 143%. That is why it is so important to meet the objectives that we both have.

[Jeremy Lefroy (Stafford) (Con)]

My right hon. Friend says that HS2 is about capacity rather than just speed, so will he instruct HS2 to cut the speed so that the route can be more flexible and do less damage to dozens of communities along the route, including five in my constituency?

[Mr McLoughlin]

I have tried to say that the case for HS2 is not just about speed and that capacity is one of the main reasons for it. Although the reduction in journey time between London and Birmingham is not huge—it will be in the region of 30 minutes—for great cities in the north such as Manchester and Leeds the reduction will be very beneficial. There is not just one reason; there are many reasons for doing this project. Even if we took the line down to a lower speed limit, it would not reduce the cost by much—we would be talking about 90% of the present cost, rather than 100%.

[Mr Jim Cunningham (Coventry South) (Lab)]

14. I agree with the right hon. Member for Chesham and Amersham (Mrs Gillan). Has the Secretary of State looked at an alternative integrated rail system, as opposed to high-speed rail? Is there a Treasury limit on spending for that project?

[Mr McLoughlin]

I have set out carefully the spending limit, and we have a put in place a reasonable contingency, based on internationally recognised figures. It is a big contingency and I hope, as the chief executive of Network Rail said a few weeks ago, that the project could come in under the budget that the Government have allowed.

[Stephen Mosley (City of Chester) (Con)]

The KPMG report this week revealed £15 billion of economic growth, mainly in the main conurbations of the north. Will my right hon. Friend confirm that not just those main conurbations but smaller towns and cities such as Chester will benefit from new and increased services because of increased capacity on the west coast main line?

[Mr McLoughlin]

My hon. Friend is absolutely right: this does add to the capacity and more services. Since I have been Secretary of State for Transport, I have noticed that my colleagues on both the Opposition and Government Benches always press for more and better services. If we are to adapt that and celebrate the success of railway travel, which in this country has gone from 750 million passenger journeys a year to 1.5 billion, with an increase doubling on inter-city lines, we must find that extra capacity.

[Lilian Greenwood (Nottingham South) (Lab)]

There is strong, cross-party agreement that a new north-south line is vital to tackle the serious and growing capacity constraints on our existing rail network. Will the Secretary of State confirm that this investment will not draw funding away from essential upgrades to the existing rail network such as the northern hub, electrification, and new inter-city trains? Does he agree it is imperative that the new north-south line remains on budget and on track?

[Mr McLoughlin]

I entirely agree with the hon. Lady, and she has pointed out three important projects that will take place between 2014 and 2019: 880 miles of electrification; the new purchase of inter-city express programme trains for the east coast and great western lines; and the northern hub. Those important projects are planned for between 2014 and 2019, and refer to the £37 billion that I mentioned Network Rail is going to invest in the current railway system.

[Sir Tony Baldry (Banbury) (Con)]

2. What steps he is taking to tackle potholes on UK roads.

--- Later in debate ---

[Ian Lucas (Wrexham) (Lab)]

T1. If he will make a statement on his departmental responsibilities.

[The Secretary of State for Transport (Mr Patrick McLoughlin)]

Since I was last at the Dispatch Box, my Department has announced £94 million in funding to boost cycling in eight cities and four national parks. My right hon. Friend the Minister of State has today published a consultation on the long-term property compensation measures for phase 1 of HS2. The Government have always been clear that they intend to go further than the existing discretionary scheme in order to assist affected property owners. The consultation proposals that we are setting out today are designed to do just that.

I am also announcing today important changes to the discount scheme, which will help local people who use the Dartford-Thurrock crossing, following a persuasive campaign by my hon. Friends the Members for Dartford (Gareth Johnson) and for Thurrock (Jackie Doyle-Price). From March 2014, those registered on the schemes will be able to make unlimited trips over the crossing for just £20 a year. For the first time, we will include privately registered vans, offering a welcome boost to small businesses.

[Ian Lucas]

The Wrexham-Bidston line, in one of the most successful industrial regions in the UK, north-east Wales and west Cheshire, is crucial to the development of the region’s economy. What comfort can the Secretary of State give to local businesses who have expressed the concern to me that HS2 will divert investment in any proposals in that region?

[Mr McLoughlin]

As we pointed out earlier in Question Time, we are making significant investment in the whole railway system. That will come sooner than HS2. We are spending £37.5 billion between 2014 and 2019. My right hon. Friend the Secretary of State for Wales has also talked to me about the line my hon. Friend has just referred to, and I will be looking at how improvements can be made to that line as well.

[James Wharton (Stockton South) (Con)]

T2. Pinch-point funding for our road network is very important. Ingleby Barwick in my constituency has significant traffic issues, especially where the A174 meets Thornaby road. Will the Secretary of State work with me to find a solution to make life a bit better for my constituents?

[Mr McLoughlin]

I certainly will work with my hon. Friend and meet to discuss this scheme with him. It was part of the applications made originally for the local pinch-point fund, but it did not fall in the first round of that. The scheme was very successful and over-subscribed, but I assure my hon. Friend that we are looking hard at ways in which we might go further, and I will be happy to talk to him about his particular scheme.

[Toby Perkins (Chesterfield) (Lab)]

T6. Returning to the subject of HS2, will the Secretary of State confirm—we have been talking about the importance of integrating the line—that residents in Chesterfield who want to take advantage of the benefits of HS2 will not have to drive down to Toton to do so, but will have a link from Chesterfield railway station?

[Mr McLoughlin]

Although the hon. Member for Bolsover (Mr Skinner) rightly pointed out that Toton is in Nottinghamshire, probably even he could throw a brick from Derbyshire into Toton.

[Mr Dennis Skinner (Bolsover) (Lab)]

Further than you.

[Mr McLoughlin]

Possibly even further than me. As the hon. Member for Chesterfield (Toby Perkins) knows, the line from Chesterfield goes through the Toton works, so one would imagine that there will be a good connection from Chesterfield and other stations to the new station we are planning at Toton.

[Amber Rudd (Hastings and Rye) (Con)]

T3. I wonder whether the Secretary of State is aware that the Hastings to Ashford rail line is the only unelectrified line on the south coast line. Will he join me in calling for the electrification of this line so that my constituents can look forward to more reliable and better link times to London?

--- Later in debate ---

[Daniel Kawczynski (Shrewsbury and Atcham) (Con)]

T5. The £100 billion the Government have set aside for infrastructure projects is warmly to be welcomed. May I reiterate to my right hon. Friend the importance of the north-west relief road around Shrewsbury and the importance that we attach to this vital project for the town, which is bringing great economic benefits to the whole of Shropshire and mid-Wales?

[Mr McLoughlin]

Once my hon. Friend starts a campaign he never loses an opportunity to mention it. He raised this point with the Prime Minister and he has a meeting planned with me. We are spending £9 million on pinch points to tackle existing congestion around the road. I look forward to my meeting with him, where I am sure he will make his case persuasively.

[Chris Evans (Islwyn) (Lab/Co-op)]

One in three blind or partially sighted people are spending about £30 a month on taxis because buses cannot accommodate them through the use of audiovisual equipment. What are the Government doing to change that?

--- Later in debate ---

[Duncan Hames (Chippenham) (LD)]

My constituents look forward to the electrification of the Great Western main line. When does the Secretary of State expect to begin a consultation on any reconfiguration of services, especially in the Bristol travel-to-work area, that will be made possible by electrification and the new trains that come with it?

[Mr McLoughlin]

I am grateful for my hon. Friend’s welcome for our planned investment. I will write to him about the more detailed question of the timetable so that he will be well aware of it.

[Sheila Gilmore (Edinburgh East) (Lab)]

I want to take the railways Minister back to his earlier statement about the east coast franchise. Could he be precise about the innovations that I and my fellow travellers will see if the process goes ahead?

[Mr McLoughlin]

We will see, when we make the invitations to tender, exactly what proposals come back from rail companies, but the simple fact is that this Government—and the previous Government, for that matter—have seen huge growth in our railways as a result of the innovation of the train operating companies. This is not new; it was well established under the previous Government and continues to be under this one.

[Several hon. Members]

rose—

[Jake Berry (Rossendale and Darwen) (Con)]

Thank you, Mr Speaker. Following on from the question asked by my hon. Friend the Member for Bury North (Mr Nuttall), will the Secretary of State confirm that he will continue to work with me and my hon. Friend for improvements on the M66, which is a key commuter route into Manchester for east Lancashire and Bury North, both of which have played their part, with their manufacturing-based economy, in reducing unemployment in our area?

[Mr McLoughlin]

I was very pleased to join my hon. Friend in his constituency a few months ago, where he explained to me some of the great difficulties he has with regard to communications and the transport links for his constituency. It is incumbent on us all to look at how we can address those particular problems, improve the transport links and, where we can, improve the road network as well as, if possible, the rail network. I understand that my hon. Friend has been fighting a valiant campaign, but that it has drawn a blank from the county council.

The Leader of the House was asked—