High Speed Rail (London – West Midlands) Bill

Lord McLoughlin Excerpts

Wednesday 23rd March 2016 Commons Chamber

[Andy McDonald]

I will carry on, because I know that people want to contribute to the debate.

In illustrating the benefits of publicly owned operators, one could hardly ask for a better example than the recent east coast main line. The last Labour Government took the important step of bringing that back into public operation after the private operator reneged on its obligations in 2009. East coast proved itself to be one of the most efficient operators, returning more than £1 billion to the taxpayer in premium payments as well as investing every penny of profit back into the service. In addition, fares were kept down in real terms in 2014 at a time when no privately run franchise took the same step. East coast had record passenger satisfaction and its engagement with the workforce was an unparalleled success.

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

I am sure that the shadow Minister will welcome the new service that will be starting from Middlesbrough as a result of the Virgin franchise, which will serve his constituents and provide new trains.

[Andy McDonald]

Of course I welcome it; it would be churlish not to. Why would I not welcome that? It does not mean that the system is right, or, for goodness’ sake, that the trains are getting to the right places.

It is difficult to see how east coast’s brilliant delivery for the taxpayer and for the commuter could be seen as a failure, or in any way undesirable. It simply does not make any sense for the UK taxpayer to subsidise foreign state-owned companies so that citizens of Germany, Holland, France and elsewhere can enjoy cheaper and superior services.

Quite simply, the rejection of even the possibility of public ownership is driven by an outdated ideology and is totally out of kilter with the views of a large majority of the public—including many Conservative voters—which is why I am so pleased that Labour is committed to a publicly owned service that puts the passenger first rather than the profits of private or foreign state-owned companies, as is currently the case.

--- Later in debate ---

[Mr McLoughlin]

I beg to move, That the Bill be now read the Third time.

Our railways and roads power our economy. It is almost two centuries since this House gave its backing to the pioneering railway from London to Birmingham—a line that changed our country, and on which many of our great cities still rely today. Of course, we could leave it as it is for another two centuries—congested and unreliable—and suffer the consequences in lost growth, lost jobs and lost opportunities, particularly in the midlands and the north. However, the House has already shown that it can do much better than that, by backing a new high-speed route, alongside other transport investments in road and rail access across the country.

In 2013, Parliament passed the High Speed Rail (Preparation) Act 2013, paving the way for HS2. That was backed by welcome support and co-operation from all parts of the House, for which I thank all parties. We have made outstanding progress since then. British contractors are bidding to build the line. British apprentices are waiting to work on it. British cities are waiting to benefit from it. That is why today’s vote is so important.

[Paul Farrelly (Newcastle-under-Lyme) (Lab)]

Will the Secretary of State give way?

[Mr McLoughlin]

If the hon. Gentleman will forgive me, a lot of people have been here all afternoon. We have a fairly short period for Third Reading, and I want to give other people the opportunity to speak.

On what will be a Great British railway, phase 1 will be the bedrock of the new network. Phase 2a will take it to Crewe. Phase 2b will take it onwards to Manchester and Leeds.

Our trains are more than twice as busy as they were 20 years ago, and growth will continue. HS2 will help us to cope. It will work, it will be quick, it will be reliable, it will be safe and it will be clean. When it is finished, we will wonder why we took so long in getting around to building it.

Many hon. Members will want to speak, so I will keep my remaining remarks short. I will touch on the detail of the Bill. I will also set out the work that has been done on the environment; then I want to describe what will come next, including what we are doing to build skills and manage costs.

First, the Bill authorises the first stage of HS2, from London to Birmingham. The Bill has undergone more than two years of intense parliamentary scrutiny since 2013. Even before the phase 1 Bill was introduced, the principles of HS2 were extensively debated on the Floor of the House. In April 2014, we had the Second Reading of the phase 1 Bill.

There was then a special Select Committee. I thank all members of the Committee, particularly my hon. Friend the Member for Poole (Mr Syms), who chaired it so ably. I also pay special tribute to my hon. Friends the Members for North West Norfolk (Sir Henry Bellingham) and for Worthing West (Sir Peter Bottomley), who, along with my hon. Friend the Member for Poole, sat on it for the whole Committee stage.

The Committee heard over 1,500 petitions during 160 sittings. It sat for over 700 hours, and over 15,000 pieces of evidence were provided to it. It published its second special report on 22 February this year. The Government published their response, accepting the Committee’s recommendations.

Many of the changes made to the scheme in the Select Committee related to the environmental impacts. Building any road or rail link has impacts, but we will build this link carefully, and we will build it right. For example, HS2 Ltd has today started to procure up to 7 million trees to plant alongside the line to help it blend in with the landscape. The changes made in Select Committee will mean less land-take, more noise barriers and longer tunnels.

[Rebecca Pow]

I totally understand the economic reasons for this project, but may I just put in a bid for nature and for ancient woodland to be given the reverence it deserves? Much of it is already going to be undermined and threatened, so will the Secretary of State please ensure that this irreplaceable habitat is given all the reverence it deserves?

[Mr McLoughlin]

I can assure my hon. Friend that, as I think I have shown, given the time taken in Select Committee, the way in which procedures can be put in place and the way in which the Woodland Trust appeared before the Select Committee to make its case, that that will be taken into account. As I have said, the planting of new trees is an important part of the work that has been done.

We have done a huge amount to assess the environmental impacts. More than 50,000 pages of environmental assessments have been provided to the House. We have produced a statement of reasons setting out why we believe it is correct to proceed with HS2. That information is important to ensure that the House makes its decisions to support this vital project in the light of the environmental effects.

I expect construction of HS2 phase 1, between London and Birmingham, to begin next year. To enable that, HS2 Ltd has this morning announced that nine firms have now been shortlisted for the civil engineering contracts for the line. Those contracts alone will create more than 14,000 jobs, and we want those jobs to be British jobs. That is why the HS2 skills college, with sites in Birmingham and Doncaster, will open its doors next year, to train our young people to take up those opportunities.

It is not all about jobs; it is also about materials. HS2 will need approximately 2 million tonnes of steel over the next 10 years, and we are already holding discussions with UK suppliers to make sure that they are in the best possible position to win those contracts.

Later this year, I will set out my decisions on HS2 phase 2. As that happens, we must have a firm grip on costs. The November 2015 spending review confirmed a budget for the whole of HS2 of £55.7 billion at 2015 prices. HS2 is a major commitment of public money, but it is an investment that Britain must make, and it can afford to do so: the cost of HS2 equates to about 0.14% of UK GDP in the spending review period.

I respect the fact that there are those in this House who take a different view of the project, but it is about the future of our nation. It is a bold new piece of infrastructure that will be open to passengers in just 10 years’ time. This is about giving strength not just to the north, but to the midlands. Today I can get a high-speed train to Paris and other parts of Europe, but not to Birmingham, Manchester, Leeds or Scotland. This is about boosting the links to the midlands manufacturing heartland and the connections to Leeds, York, the north-east and Edinburgh, and to the north-west, Liverpool, Manchester and Glasgow. It is about making HS2 a part of our national rail network, including Euston, where we are not only building a world-class high-speed rail station, but funding work by Network Rail to prepare for the masterplan for Euston station, which is an important step forward in our vision of an integrated hub that will enhance the area. At Old Oak Common, I have agreed to the transfer of land to the development corporation, paving the way for more than of 25,000 new homes and 65,000 jobs.

High Speed 2 is a measure of our ambition as a country and of our willingness to look beyond the immediate future and to take a hard-headed view of what we need to succeed as a nation. This is a railway that will unlock that future. I urge colleagues to support the Bill’s Third Reading, as they have done to date, and the carry-over motions so that it can continue its passage in the next Session.

I commend the Bill to the House.

[Several hon. Members rose—]