Railways: High Speed Rail

Lord Ryder of Wensum Excerpts

Monday 28th January 2013 Lords Chamber

[Earl Attlee]

My Lords, first, of course I always listen very carefully to what noble Lords say. I am grateful that my noble friend thought that it was a non-party political Statement. However, it did say that passenger activity had doubled. In the past, when I had to repeat a Statement that had rather more political content, the noble Lord, Lord Davies of Oldham, did not resist the opportunity to give me a good and well deserved teasing.

We have failed to invest in infrastructure in the past. However, over recent years we have rather turned the tide and recognised the benefits of railways. I will be as tough as I can, but in my current position my capacity is limited.

[Lord Ryder of Wensum]

My Lords, in my experience, when I hear a Statement delivered by a Secretary of State in the other place claiming that the leaders of all the main parties are agreed on a major matter, it invariably turns out to be wrong. In this case, I am reluctant to spoil the celebration. However, in his first point, the Secretary of State in the other place made no financial and economic case at all for the scheme. While I do not expect to be around in 22 years when the scheme is meant to be finished, I am willing to bet that it will never be completed, because the expenditure that is now stated for the cost of the scheme will be inflated year on year, and ultimately a Government, either on this side of the House or the other, will put a stop to it. I am afraid that that has always been the case with the type of vast public expenditure that the Secretary of State effectively announced today without making any case in its defence.

[Earl Attlee]

My Lords, HS2 has a good business case. If local areas seize the opportunity it presents, we can expect the benefits to be even greater. We are continuing to work with stakeholders to realise these benefits. The latest available estimates suggest that HS2 will return around £2-worth of benefits for every £1 spent. HS2 has the potential to generate transport-user benefits with a net present value of up to £48 billion, and revenues with a net present value of up to £33 billion. The construction costs of HS2 are broadly similar to the sort of money we are spending on Crossrail, so the incidence of expenditure on the project will be affordable.