High Speed Rail

Maria Eagle Excerpts

Monday 20th December 2010 Commons Chamber

[Maria Eagle (Garston and Halewood) (Lab)]

I thank the Secretary of State for early sight of his statement. Today, he is facing a rising tide of criticism over the transport chaos gripping the country, so it is unlucky that he is scheduled to update the House on high-speed travel on a day when most people would settle for travel at any speed at all. As he knows, it was Labour in government which set out a vision for a high-speed rail line running from London to Birmingham from 2026, and on to Leeds, Manchester and Scotland in phases during the following years. I pay tribute to the tenacity and determination of his predecessor, the noble Lord Adonis, whose exhaustive work on the scheme has allowed the right hon. Gentleman to pick up and run with the vision he has set out today for high-speed rail.

I recognise the importance of increasing rail capacity and connectivity, particularly in respect of the west coast main line and the Chiltern line beyond 2020. I assure the Secretary of State that Labour remains committed to investing in a world-class rail system, and that high-speed rail could have an important role to play in delivering it. That is why we began the planning process when in government—in fact, I suspect that his proposals probably have more support on the Labour Benches than on the Benches behind him. He is the one sitting in a divided Government, although for once the divisions do not involve the Liberal Democrats. No doubt, he will find out in due course whether he has done enough today to persuade the Secretary of State for Wales, who is in her place, not to resign in protest at his plans.

We have just embarked on a fundamental review of our policies, just as the Conservatives did after the Prime Minister became leader of his party—and just like the leader of the Liberal Democrats, who appears to have looked again at all his party’s policies since joining the Government. It would be ridiculous for our future support for high-speed rail not to be at the heart of that review—and it will be at the heart of it—given that it is a £30 billion commitment on future Parliaments. In the meantime, however, the Secretary of State has the support of Labour Members as he moves forward with the next stage of planning the route he has set out today.

It would be good if the Secretary of State were to show the same determination and commitment to other critical investment in our rail industry—investment needed now, not in future Parliaments. He has cut and delayed the vital investment we had planned for this Parliament; he has delayed the new generation of inter-city express trains and cut our plans for 1,300 new carriages; he has delayed much of the electrification that we planned and cut Great Western line electrification beyond Bristol and into Wales; and he has delayed the Thameslink and Crossrail schemes, which will not now benefit passengers until 2018—or is it now 2019? It keeps slipping.

We have set out an additional £7.5 billion of capital investment from which significant sums would have been invested in our rail networks in this Parliament. Does the Secretary of State realise that because he has cut so much spending in this Parliament while post-dating a £30 billion cheque for a high-speed rail scheme, the cost of which will fall in future Parliaments, people may well be sceptical about the extent of his commitment to Britain’s railways today? Does he understand how he puts at risk public support for future investment such as high-speed rail, given that he cannot even get the investment to keep our trains and other transport infrastructure running during severe weather?

Does the Secretary of State also understand the anger that will be felt in communities across the country when people hear him claim that his support for high-speed rail is due to concern about the north-south divide in Britain? His party’s support for high-speed rail is a fig leaf to disguise the fact that it has no strategy for investment, jobs or growth in the north. If he were really bothered about the north-south divide, he would not be supporting the scrapping of the regional development agencies, the future jobs fund and the education maintenance allowance, or the trebling of student fees, the delaying of broadband roll-out or the increase in VAT to 20%—another broken promise from both the Conservatives and the Liberal Democrats. If he were really bothered about the north-south divide, he would not be loading the largest cuts on to councils in the midlands and the north. If he were really bothered about transport links beyond the south, why is it that authorities in the north are facing the biggest cuts in their road maintenance and local travel projects, with Merseyside facing cuts of 49% and Manchester cuts of 42%, while midlands and southern counties are doing much better?

Let me ask the Secretary of State some specific questions about the scheme that he has announced today. What impact will the changes to the route, the additional compensation and hardship payments, and the other commitments that he has made today have on the £750 million that he has allocated in this spending period? Can he offer an assurance that that will not have a knock-on effect on other rail schemes already facing cuts and delays, and that it will not set a precedent for compensation in other cases where infrastructure is driven through people’s homes and businesses? He has previously referred to the construction costs for major projects in the UK being significantly higher than for comparable projects elsewhere in Europe. What progress has he made, working with Infrastructure UK, to find ways of bringing down the cost of the scheme to the taxpayer?

Will the Secretary of State confirm whether the cost of the trains to run on the high-speed line has been included in the figures used for the cost of the scheme; or, as with other schemes, such as Crossrail, do they constitute separate expenditure yet to be identified? One of the things missing from the debate on high-speed rail to date has been the likely cost of using the service. Does he agree that if all taxpayers are to contribute so significantly to the cost of constructing the route, it cannot be a service with ticket prices outside the grasp of most people? Does he agree that many people will question his commitment to take the line beyond Birmingham, when he is restricting his proposed legislation to the first part of the route? Why is he not taking powers in the hybrid Bill to build the line to the north of Birmingham?

The Secretary of State’s party has no credibility when it comes to investing in our railways. We remember the 18 years of Tory under-investment in Britain’s railways, and the botched privatisation, which resulted in years of instability and uncertainty. It was Labour that delivered years of sustained investment, leading to a doubling of passenger numbers. He is right to continue the work, which Labour began, to prepare for high-speed rail in the UK. However, we must also see investment in rail schemes that will benefit the country and assist growth and economic recovery now, not just in 15 to 20 years’ time. We must see investment in technology to improve the resilience of the network to severe weather, and we must see passengers protected from the spiralling cost of fares. If the Secretary of State is really serious about maintaining a consensus on high-speed rail and building public support for his plans, he should think again about some of the decisions that he has taken in his first few months in the job. He should think again about cuts to new carriages, the delays to electrification and the massive hike in fares.

[Mr Hammond]

I will start with the good bits. I thank the hon. Lady for what I think was her support for the next stage of the process—going through the consultation and introducing a Bill later in this Parliament, if that is what we decide as a result of the consultation. I am also happy to pay tribute, as she did, to the work of my immediate predecessor in developing the case for high-speed rail, although it is worth noting that not all his predecessors seemed to have been quite so committed to the project.

I am afraid that it is the hon. Lady who lacks credibility, in talking about our failure to invest in the railway. She can talk about a decade of Labour investment as much as she likes. What most people will have noticed is a decade of driving us towards the brink of bankruptcy. What we have done is salvage a substantial programme of investment in rail infrastructure—a programme the scale of which neither she nor many commentators outside this place predicted we would be able to continue with—in the context of the extreme fiscal constraints that we face. We have gone ahead with Crossrail and Thameslink, and with a programme of additional rail vehicles—gone ahead with, not merely announced unfunded promises, which is her legacy. We will go ahead with the inter-city express programme, as I have already announced. We will announce to Parliament the details of that programme, along with the electrification associated with it, in the new year. The hon. Lady can go on all she likes about proposing £17 billion of additional investment. Her party has no economic plan, no policies and no credibility.

Turning to the specifics of the hon. Lady’s response, the high-speed rail investment that we are proposing will be approximately £2 billion a year over a period of 16 years. That is roughly what we are spending now on Thameslink and Crossrail, so large infrastructure projects can be funded while the investment in the mainstream main line railway is funded as it is now.

The hon. Lady asked about our commitment to high speed rail as a means of addressing the north-south divide, and she reeled off a string of tried and failed mechanisms for addressing that persistent problem. We have decided to take a new approach to closing the gap between economic growth rates in the north and south, and the experience of other countries suggests that investment in strategic infrastructure is the best way to deliver that outcome.

The hon. Lady asked whether the change of route and the exceptional hardship scheme will impact on the £750 million that has been set aside for HS 2 during this Parliament, and the answer to that is no. She also asked whether there would be an impact on other rail schemes’ budgets, and the answer is again no. The HS 2 budget is ring-fenced; other rail schemes are typically funded through Network Rail and through support to train operators.

The hon. Lady asked about the compensation scheme. I have indicated that we will seek to go further than has happened with previous such infrastructure schemes in the UK, because it is right and proper that individuals who suffer serious financial loss in the national interest should be compensated. She also asked whether we will be setting a precedent in that regard. She should be aware that developing European jurisprudence in the area of property rights and the need for Governments to compensate is pointing towards more generous compensation becoming the norm, and I suspect that that will be the case for future projects.

On construction costs, yes, we are of course anxious to get such costs down to something closer to European norms. The hon. Lady will know that Sir Roy McNulty is carrying out a review, one element of which relates to the cost of UK rail construction, and Infrastructure UK is also engaged in that issue. A report will be published in April. She asked whether the cost of the trains is included in the total figure, and I can confirm that it is.

The hon. Lady also asked about the assumption with regard to ticketing and to the prices of tickets. I can tell her that the business case modelling assumes the same ticket pricing structures as those that are now in place on the west coast main line. In practice, however, the west coast main line and High Speed 2 will be in competition with each other. The operator of High Speed 2 will have a very large number of seats to fill, and we anticipate that the processes of competition in the marketplace will create opportunities for passengers who are prepared to buy advance tickets and to shop on the internet to get bargains for travel between London, the midlands and the north.

Finally, the hon. Lady asked about the strength of our commitment to going beyond Birmingham. With respect, when her party was in government, its position was always focused on a line from London to Birmingham. It was us who took the debate beyond Birmingham and made the case for Manchester and Leeds. Indeed, the business case for this railway, for the connection to Heathrow airport and for the connection to HS 1 depends on a railway that forms a complete network linking Britain’s four principal population centres, so I can assure her of that commitment.

I put it to the hon. Lady, however, that if we had sought to carry out the detailed work required for a hybrid Bill that covered the entire route, including the legs to Manchester and Leeds, it is unlikely that we would have been able to introduce such a Bill until the end of this Parliament. Our decision was therefore to introduce a hybrid Bill to deal with the London to Birmingham section—which is already a massive undertaking—in 2013, and that, while that Bill is going through Parliament, we should continue our detailed work on the legs to Manchester and Leeds, so that they can be included in a further hybrid Bill in the next Parliament.