High Speed Rail (Preparation) Bill

Mary Creagh Excerpts

Thursday 31st October 2013 Commons Chamber

[Mary Creagh (Wakefield) (Lab)]

I welcome the Under-Secretary of State for Transport, the hon. Member for Scarborough and Whitby (Mr Goodwill), to his new role, and I look forward to working with him. I pay tribute to my predecessor, my hon. Friend the Member for Garston and Halewood (Maria Eagle), for her work in holding no fewer than four Transport Secretaries to account, and for her tireless work to develop Labour’s transport policy. I pay tribute, too, to my hon. Friend the Member for Nottingham South (Lilian Greenwood) for piloting the Bill through Committee in a co-operative manner. Following in her footsteps, I am proud to support High Speed 2, and I am proud to support getting good value for public money, too.

We support plans for a new north-south rail line, but we are clear that the Government must get a grip on the costs. High Speed 2 was the brainchild of Lord Adonis, the Labour Government’s last Transport Secretary. We understand that the railway is not needed just to tackle the rail capacity crunch that we face in the next ten years: managed properly, HS2 has the power to transform the economic geography of our country. It will build our great cities and bring them closer together. It will connect people to each other, to work and to leisure. It will help to rebalance the economy, creating and using our country’s manufacturing skills.

[Charlie Elphicke]

This is an important project requiring national consensus. It needs all parties to support HS2 if it is to go ahead—no ifs, no buts. Will the Labour party support this project properly: yes or no?

[Mary Creagh]

If the hon. Gentleman had listened, he would know that I just said we will support HS2. We shall be voting in favour of it this evening.

This is the first new north-south railway for more than 100 years, but Labour's brainchild has, sadly, been neglected by the Government. Instead of gestation, we have had stagnation. The project has been put at risk by delays, project mismanagement and, in July, by a huge increase to the budget.

First, on delays, Ministers looked at strategic alternatives to High Speed 2. That took until November 2011, which wasted 18 months and led to slippage in the project timetable, with Ministers now playing catch-up. Costs in this Parliament have risen from £700 million to £900 million. The National Audit Office has warned that this tighter time scale poses risks to the project:

“Faster preparation for the bill may increase the extent of petitions to Parliament which may make it less likely that royal assent is granted by the planned date of May 2015.”

Another delay is that the consultation on phase 2 of the route has only just been launched for the Y part of the network, despite the fact that it was being worked on when we were in power three years ago. Ministers have been trundling along; it is time for more urgency.

Secondly, on project mismanagement, the Government’s early cost-benefit reports were criticised in May this year by the National Audit Office for failing to make the strategic case for the new railway. I welcome that that has now been published in full. In September, the Public Accounts Committee warned that Ministers’ plans to present the hybrid Bill to Parliament before Christmas were “ambitious” and “unrealistic”. I would be interested to hear from the Secretary of State whether that is still his plan.

[Andrew Bridgen]

Will the hon. Lady confirm, as he has stated in the media, that the shadow Chancellor will have the final say over whether Labour supports HS2?

[Mary Creagh]

The shadow Chancellor has never said that in the media. In fact, he has told the media that it will be a collective decision, so I do not know where the hon. Gentleman has got that from.

Finally, this summer the contingency budget ballooned to £14.4 billion, now one third of the railway’s cost. Our concern is that putting in such a large contingency at such an early stage of the project could be a self-fulfilling prophecy, a point made by my hon. Friend the Member for Birmingham, Selly Oak (Steve McCabe). We are living in austere times. Our constituents are facing the largest cost of living crisis for a generation. Prices have risen faster than wages for 39 of the 40 months of this Government, and working people are, on average, more than £1,500 a year worse off. In these circumstances, and given the public finances, it was right for my right hon. Friend the shadow Chancellor to call the Government to account for their mismanagement of the project, which has led to this ballooning of costs. That is the right thing to do, because public consent for this great project depends on people like the shadow Chancellor having the courage to stand up against sloppy, incompetent and bureaucratic government. It is we, the Opposition, who are the true friends of HS2 and this Government who have put it at risk. We will continue our scrutiny of these costs and our discipline on the public finances.

[Mr Betts]

My hon. Friend rightly draws attention to the problem of delay. Certainly in Sheffield, we are particularly concerned about the delay between completing phases 1 and 2. Now that the welcome appointment of Sir David Higgins has been announced, should not one of his jobs be to consider how we can build the second phase more quickly? Perhaps we could start building in the north as we start building in the south.

[Mary Creagh]

Again, that is for Sir David Higgins to work out with Ministers, but undoubtedly that could keep costs down and allow further benefits to be realised.

[Mr Godsiff]

Is there a figure above which the Opposition Front-Bench team would not support this project, if the incompetence to which she refers is played out by the Government? Is there a figure at which the Labour party would pull out?

[Mary Creagh]

I do not know whether my hon. Friend was here when this was discussed, but we tabled an amendment on Report that was agreed by the Government and which makes it clear that any contingency spend must be reported to the House annually.

We will continue to hold up the weaknesses of the management of HS2 until every one of them has been addressed. We want to see swift progress with the hybrid Bill and we shall scrutinise the latest strategic case, published this week, to satisfy ourselves that it is based on sound assumptions. The Government must drive down those contingency costs and have a clear strategy for doing so. This fiscally disciplined scrutiny is what one would expect from any credible official Opposition seeing a Government desperately mismanaging a project. We will go ahead with the project, but the Government must bring down the costs, and the benefits to the nation must be clear. We say: get a grip on the project, get control of the budget and get it back on track.

The increase in rail usage during our time in government was a record to be proud of, but we now face serious challenges. We understand that current and future capacity constraints on the existing rail network place a brake on regional and city growth. We know that demand for rail travel continues to grow, despite the tough economic times, and our support for a north-south line rests on tackling that capacity problem and supporting 21st century transport infrastructure. This week’s strategic case shows the intense pressure our major mainline stations are under, and not just in the south. In four years, there will be 200 people for every 100 train seats arriving into Birmingham New Street at 5 o’clock. Rail freight is growing at 3% a year, and HS2 would free up space for more freight trains on the east coast, west coast and midland main lines, and take those lorries off our roads.

[Kelvin Hopkins]

As I said in my speech, if we want a serious transfer of freight on to rail, we must make it possible to transport lorries on trains, but we cannot do that on the existing network because the gauge is not big enough. We need a dedicated freight network for that to happen.

[Mary Creagh]

I am not sure whether my hon. Friend is proposing that we build an entirely new freight network—

[Kelvin Hopkins]

indicated assent.

[Mary Creagh]

Okay, well perhaps we will park that thought for another day, because many others want to come in. My hon. Friend is absolutely right, though, that we have to shift freight from the roads and on to the more environmentally friendly railways, and we want to ensure that this line can do that. We want HS2 to give people a real choice between short-haul aeroplanes and the more environmentally friendly trains. We want to see more inter-city services for cities that currently have a poor service to London. We want HS2 to free the west coast, east coast and midland main lines for new commuter services between the midlands and the north.

These are not just transport arguments. They are social and economic arguments about the sort of country we want to be: a country in which no town or city is left behind. We want to ensure that cities such as Wakefield, which currently enjoys a twice-hourly inter-city service to London, are not downgraded. I obviously have a particular interest in Wakefield’s twice-hourly service to London, which I am happy to declare.

The public consultation on compensation arrangements is important, and the Government need to ensure that they respond fully to specific local issues such as those raised by the right hon. Member for Chesham and Amersham (Mrs Gillan), and that proper compensation is given to residents who are affected or blighted, such as those in the constituency of my right hon. Friend the Member for Holborn and St Pancras (Frank Dobson). We will maintain pressure on the Government to work closely with the communities affected.

We will vote today in favour of this paving Bill to allow preparatory expenditure on the scheme. We believe that how we build something is as important as what we build. This is not just a transport project; it is also a social and economic project. I am glad that the cities are already looking at how they can invest in skills so that local people can benefit from the employment opportunities that HS2 will bring. We are pleased that the Government have agreed to our amendments on vocational training audits for the scheme. That will help us to realise our Labour vision of creating 35,000 high-quality apprenticeships over the lifetime of the project, representing a step change in vocational education for this country’s young people. HS2 is not just a transport project; it is also an employment project.

We are glad that the Government have accepted our amendments on annual reports to Parliament on contingency spending to ensure that the scheme is kept on budget, and on linking the railway with active travel such as cycling and walking. Having said that, I will not make any promises about cycling the new cycle path that will run alongside the track. After cycling from London to Brighton, I think I know my limits. We will also continue to scrutinise Ministers to ensure that they work closely with UK companies to use procurement to deliver the maximum jobs, growth and skills for UK companies, small and large.

High Speed 2 is a huge project which, if managed properly, will bring great social, economic and environmental benefits to this country. The project is about how we deliver capacity for more passengers and services, and connectivity to bring cities closer together, while ensuring that the trains run on time. We will serve our great cities by having HS2 come in with a budget that is under control and with benefits that are clear for all to see. The Secretary of State should do his job and I will do mine, and my job is to ensure that he does his job properly.

High Speed 2 is a project that is in the national interest. It has suffered from the fiscal and project management incompetence of this Government, and I hope that this Secretary of State will get it back on track. Britain deserves better than this. It will fall to the next Labour Government, a one-nation Government, to build HS2—on time, on budget and in the national interest.