High Speed Rail (London – West Midlands) Bill

Louise Ellman Excerpts

Monday 28th April 2014 Commons Chamber

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

I welcome the Bill to start the building of the high-speed line from London to the west midlands. High Speed 2 was first put forward in 2009 by Lord Adonis when he was Secretary of State for Transport. Since then there has been considerable and very necessary discussion and debate. The project has all-party backing; it is now time to fire the starting gun.

This must be just the first stage in building a high-speed network for the UK, with phase 2 expanding the network to the north. It must be built as a major addition to the national network, linked with investment in the existing classic line so that essential increased capacity and connectivity, together with the potential for regeneration, are realised. Increasing capacity for both passengers and freight is required on both the east coast main line and the west coast main line. The figures released last week by the Office of Rail Regulation showed a phenomenal doubling of rail passenger journeys in recent years, together with a vast increase in freight on rail. In the past decade, rail passenger journeys have increased on average by 5% per annum and freight has expanded. On some routes, the increase in passenger journeys has been more than 70% over that decade. That increase is expected to continue, and the demand for freight is increasing.

The growing demand for rail from both passengers and freight is already causing problems on the west coast main line, where there are insufficient rail paths available to meet the needs of the new services that are required, and delays are already occurring. The Transport Committee has addressed this issue on a number of occasions. In our first inquiry in 2011, we looked at alternatives to building a new high speed network. We looked specifically at upgrading the west coast main line as an alternative. The Committee was very clear that that will not provide the step change that is required. The £9 billion west coast main line investment of 2008 has brought essential improvements, but it has not created enough capacity for the future.

I was pleased to see that the recent reports from both Sir David Higgins and Lord Deighton took forward the very specific recommendations made by the Transport Committee to ensure that the best possible value is obtained from this necessary investment across the nation. Those recommendations include building a line, together with continuing investment in the classic line at the same time as the new capacity is built.

[Mr Redwood]

I am grateful to the hon. Lady. As over this weekend the marketing materials for the current railway said that one could travel to Birmingham for £7.50 and to Liverpool or Manchester for £12.50, is she worried that when this huge amount of capacity comes on stream, if it does, there will be even more intense price competition and huge disappointment in the fare revenue needed for the scheme?

[Mrs Ellman]

One of my concerns is that if the new line is not built, the problems of capacity will lead to whatever Government are in power being tempted to increase rail fares to manage demand.

Further recommendations from the Select Committee taken up by Sir David Higgins and Lord Deighton include ensuring wider access to the new network—

[Andrew Bridgen]

Will the hon. Lady give way?

[Mrs Ellman]

I am sorry; I am limited in time to allow other hon. Members to participate.

Further recommendations include ensuring wider access to the new network and providing new services on the freed line—perhaps we should designate those as high speed Britain projects—together with promoting regional economic strategies with local enterprise partnerships and others, making sure that the potential for economic regeneration along the lines and beyond is recognised.

High Speed 2 will improve connectivity, but that improvement is not solely in relation to connecting the midlands and the north to London. It is also about improving the links between the major cities of the north and the midlands, between cities such as Manchester, Birmingham, Sheffield, Leeds and Liverpool. The potential benefits of High Speed 2 are immense. The current benefit-cost ratio estimate for the full network is 2.3. That means £2.30 in benefit generated for every £1 invested, but those figures do not take into account the very real potential for major economic regeneration. It is the major cities which recognise what that potential might be, and they are among the strongest advocates of the new line. Indeed, the research commissioned by the core cities themselves identifies around 400,000 new jobs that would come from the development of High Speed 2.

Little attention has been given to the major potential for employment across the country from building and operating HS2. According to the Government, this could provide over 3,000 jobs in running the railway, and more than 24,500 jobs in construction, together with 400,000 additional jobs through regeneration. It is essential that the Department for Transport produces a strategy for procurement to deliver maximum opportunities for British firms. The Department must be more active in doing that. The proposals for a new skills college will be extremely important in widening those opportunities.

Those who oppose High Speed 2 discuss the size of the investment required. Indeed, HS2 involves a major investment of around £50 billion over about 20 years. Costs must be controlled to secure value for money, but the benefits must be maximised. I understand that some hon. Members will have justifiable local concerns which should be addressed, but these do not outweigh the strategic case for HS2. Without HS2, the west coast main line will become increasingly overloaded. Commuters will suffer from overcrowding and there will be fewer passenger services on the line than the public require and the market could sustain. Future Governments will be tempted to use price to control demand. Growth in rail freight will be stifled, leading to more lorries on the roads. Perhaps more significantly, the chance to reshape the national economy and boost growth in the north and the midlands will have been lost. This is an opportunity to show vision and commitment through a bold investment decision. It must be grasped.

[Several hon. Members]

rose—