High Speed 2

Lord Watson of Invergowrie Excerpts

Thursday 24th October 2013 Lords Chamber

[Lord Watson of Invergowrie (Lab)]

My Lords, I am a long-time supporter of rail travel and hold to the belief that trains are so important that they should be seen as a public service. They are an essential part of any country’s infrastructure and, as such, should be run as a service and not for profit. If that requires nationalisation and/or government subsidy, so be it. Surely it ought to be seen as a wise investment in economic terms.

Is it not ironic that although none of the main political parties favours renationalisation of our railway infrastructure, none is opposed to our trains being owned and run by the state, just as long as it is not this state? The state-owned railway companies of France, Germany and the Netherlands regularly bid for our rail franchises, sometimes with success. I did not know this until I did some research, but the royal train is now operated by EWS, which is owned by Deutsche Bahn.

My support for railways is often sorely tested. There are 28 different train operators and too often, it seems, they do not speak to each other, at least not in the same language. Perhaps that harks back to the point that I have just made. For years I used commuter services between Edinburgh and Glasgow, and it was rarely a pleasant experience. I do not do that now and I rarely use the commuter trains that serve London. However, I feel that it is a failure of the service when I am forced to stand and cannot get a seat that I have paid for. Just last weekend that happened in Scotland on a journey that I made between Aberdeen and Edinburgh.

High-speed rail exists in all major EU countries—France, Germany, Italy, Spain and, of course, here—as has been referred to by many noble Lords today, so I am naturally inclined to support the concept of HS2. Yet there are two basic reasons why I have doubt in my mind. One is the spiralling cost. The figures I have seen suggest that when the project was first announced in 2008, the projected cost was £17 billion. By 2010, that had gone up to £30 billion. This year, it is at £42 billion plus £7.5 billion for rolling stock. The Financial Times has estimated that the final cost could be as much as £70 billion. I do not know the veracity of those figures but it seems that the projected costs are spiralling out of control.

I certainly agree with my noble friends Lord Faulkner and Lord Grocott that transferring some of the cash—certainly not all of the cash—to upgrade existing infrastructure is not the answer. But surely some form of guarantee has to be given to control costs, otherwise support will gradually wither and die.

In opening this debate the noble Lord, Lord Greaves, talked of the need to close the regional divide. I certainly support him in that. Anyone who looked at today’s Guardian will have seen figures on the front page showing that during the boom from 1997 to 2006, London and the south-east were responsible for 37% of the UK’s growth in output, and since the economic crash of 2007-08, London and the south-east were responsible for 48% of that growth. Every other region except Scotland has suffered relative decline over that period, which highlights the need to ensure that economic benefits are not concentrated, as they have all too often been, in London and the south-east. Regional benefits are the second reason I have doubts about HS2.

I thoroughly agree with my noble friend Lord Rooker on the need for HS2 to be extended eventually to Glasgow and Edinburgh, but I think it highly unlikely that that will happen, certainly in the lifetime of most noble Lords, because the numbers that would use it would be held not to justify the cost. It is for the same reason that the motorway network stopped at Carlisle for 20 years before it was extended to Glasgow. I wonder how many noble Lords are aware that not only is there no motorway between Newcastle and Edinburgh, two major cities in the UK, but that there is not even a dual carriageway for a considerable part of that journey, which is a disgrace.

The recent figures prised from the Government—and I use the term advisedly—through an FoI request on the question of the benefit of HS2 show that the coalition had attempted to withhold the bad news: the information in the KPMG report that, as the noble Lord, Lord Alton, rightly said, demonstrated that Aberdeen and Dundee would lose heavily when HS2 is in place, as, indeed, would other places such as Norfolk, Cambridge, Bristol and Essex, among others. That seems to stand to reason because there cannot be winners all the way. Not everybody can win from HS2. It is quite clear that there will be displacement of business and of travel, so to say that everything will be better with HS2 just does not stack up. I am prepared to accept that there will be considerable benefits, but certain parts of the country will undoubtedly lose as a result and that has to be faced by those who are particularly enthusiastic about HS2.

I am not as yet prepared to call for HS2 to be abandoned, but I do believe that we need much greater certainty on costs and detailed proposals as to how those areas likely to suffer financially would be compensated in other ways.