Infrastructure Debate

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Department: HM Treasury

Infrastructure

Nick Raynsford Excerpts
Tuesday 12th February 2013

(11 years, 3 months ago)

Commons Chamber
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Greg Clark Portrait Greg Clark
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The hon. Lady did not hear what I said. The structural deficit the Labour Government ran was in place before the financial crisis. That is the root of the problems we now face.

I do not for a moment want to suggest those 13 years did not result in a transformation of Britain’s position in respect of infrastructure. It was transformed, all right: the quality of our infrastructure declined in relation to that of our world competitors.

Nick Raynsford Portrait Mr Nick Raynsford (Greenwich and Woolwich) (Lab)
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Will the right hon. Gentleman address the issue of rail and tell the House what his party did about High Speed 1 and Crossrail when it was in government? Will he congratulate the last Government on completing HS1—the first new high-speed rail link to the channel tunnel, some 15 years after the channel tunnel was opened—and on starting the Crossrail scheme, which is essential to the future of London? How can he possibly repudiate that record of achievement?

Greg Clark Portrait Greg Clark
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That was a good example of cross-party support, and the idea that it was some unilateral initiative by the Labour party is for the birds. We should have been more ambitious; we should have gone further and faster. It will be 15 years before we can count on the first trains running on High Speed 2. Why were those plans not advanced by the previous Government from the beginning? After 13 years we could have been looking forward to seeing progress in a couple of years’ time, rather than waiting for this Government to lay the necessary legislation.

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Nick Raynsford Portrait Mr Nick Raynsford (Greenwich and Woolwich) (Lab)
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I draw attention at the outset to my interests as declared in the register.

This has been a curious debate to date. Infrastructure is, at least in theory, a subject on which there is a large measure of cross-party support. There is general agreement across the House that we need to ensure that we have the transport networks, power arrangements, waste and water distribution systems, sewerage systems, flood protection systems and all the other necessary infrastructure that is essential to a modern, functioning economy. Really, we should have been debating how to make a reality of the current investment programmes to deliver the kind of infrastructure that is essential to our economic well-being in the longer term and, in the short term, that will help to create jobs, employment and growth in our stuttering economy.

However, we did not do that. Instead, we have seen a series of differences—not just across the House, between the Minister and my hon. Friend the Member for Leeds West (Rachel Reeves) on our Front Bench, but between the Minister and his Back-Bench colleague, the hon. Member for St Albans (Mrs Main), who took a very different view from him. Rather than echoing his stated wish that infrastructure investment should be speeded up, she made a fairly passionate case for slowing it down.

Anne Main Portrait Mrs Main
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The right hon. Gentleman will see clearly that I talked about the strategic rail freight interchange in my constituency. More to the point, I am sure he would agree that these issues—whether waste disposal or otherwise—cause tensions in communities and that harm to the environment has to be weighed in the balance against development.

Nick Raynsford Portrait Mr Raynsford
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I put it to the hon. Lady that when she reads Hansard tomorrow, she will see some pretty clear references to going slowly and not following the advice of her Front-Bench colleague, who wants to accelerate development. He has not been very successful in doing that, but at least his heart is in the right place, and I am with him on that.

The Minister chose to present a case that was, frankly, absurdly partisan—perhaps to divert attention away from his difficulties with his own party, which does not always share his enthusiasm for speeding up the development of infrastructure. The implication that there was no worthwhile infrastructure investment under the previous Government and that the arrival of the current Government has unleashed a cornucopia of new infrastructure schemes is, frankly, risible.

Let us look at the record. I tried in my intervention to point out to the Minister that it was completely unfair to say that there had been no worthwhile investment, particularly in rail, under the previous Government. Let us look at the history of High Speed 1, the link between the channel tunnel and London. That link was not constructed when the channel tunnel was built, because the then Government, headed by Baroness Thatcher, did not believe in rail investment. The French did, and there was a high-speed link between the tunnel and Paris. The Belgians did, and there was a high-speed link between the tunnel and Brussels. But there was no high-speed link between the tunnel and London because the then Conservative Government did not believe in it. Eventually, the Major Government had a last-minute change of heart and began to recognise the importance of such a link, but they could not get it together and the scheme was in a state of financial uncertainty when the Labour Government came to power. The Minister is a fair-minded man, and I hope that he will recognise that High Speed 1, an important piece of infrastructure investment, was the achievement of the last Labour Government.

I would also like to remind the Minister about Crossrail. The scheme had been talked about for a very long time, since the mists of antiquity, but it was the Major Government who introduced a Bill to enable it to be built. However, rather characteristically of them, their political management in this place was so poor that they entrusted the project to a hybrid Bill Committee, which rejected it. So the Bill never progressed, the infrastructure was not built and, once again, it was left to the Labour Government to introduce the Crossrail scheme, to take the Bill through Parliament and to begin the work.

I give credit to the current Government, because they have sustained the investment in the Crossrail scheme. I am glad that they have done so, but it is risible to argue that everything being done today is wonderful and that nothing good was done before. As the Minister must recognise, the Crossrail scheme was developed by the previous Government and is being carried forward by the current Government. Making a reality of such long-term investment schemes depends on that degree of cross-party consensus.

Greg Clark Portrait Greg Clark
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The right hon. Gentleman will recall that I made no criticism of Labour in that regard. In fact, I said that these were long-term decisions, and that the proposals that he has mentioned enjoyed cross- party support. My particular criticism of the previous Government was the decision of the Minister for whom he worked, now Lord Prescott, to cancel 103 out of 140 road schemes. In the spirit of bipartisanship, will he now reflect on that point and accept that that was the wrong thing to do?

Nick Raynsford Portrait Mr Raynsford
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Perhaps the Minister will reflect on the point ably made by my hon. Friend the Member for Corby (Andy Sawford) about Lord Prescott’s part in the creation of High Speed 1 and the praise that was given to him by Michael Heseltine, whom I am sure the Minister would accept as a colleague.

Nick Raynsford Portrait Mr Raynsford
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Unlike the Minister’s, my speech is time-limited, and I have now given way twice. I cannot do so again, so I hope he will bear with me.

I want to take the Minister to task once more—I might give way to him again at that point, as this is a new subject—over the national infrastructure plan. The Government’s amendment to the motion is based on the absurd proposition that the national infrastructure plan is entirely the product of the current Government and that no such plan existed under the previous Government. He will know very well that Infrastructure UK was set up by the previous Government, and that all the preparatory work for the national infrastructure plan was done under that Government. That is why his Government were able to publish the national infrastructure plan in October 2010. If he thinks about it, he will realise that it would have been completely impossible to put together and publish the plan within four months or so of his party coming into government.

The national infrastructure plan was a bipartisan achievement, and I hope that we can continue this debate in a more mature spirit, and recognise that cross-party agreement is essential if we are to get the real infrastructure investment that we need and if we are to do this properly without the kind of problems that we have encountered too often in the past as a result of the failings of all Governments of all complexions.

I should also like to focus on the ambivalence that exists in relation to whether housing constitutes infrastructure. The national infrastructure plan does not define housing as infrastructure, but the Government have made provision in their Infrastructure (Financial Assistance) Act 2012 for £10 billion of support for investment in housing schemes. I would be interested to hear the Minister’s view on whether infrastructure should be defined so as to embrace housing and, if so, how quickly he thinks housing might benefit from that Act.

Last summer, Lord Sassoon, who was then the responsible Minister, talked about £40 billion-worth of schemes that were shovel ready—all ready to go—in the autumn. We are now well past the autumn and to the best of my knowledge not a single housing scheme has been given the go-ahead. Indeed, we have got to the point only of defining the criteria by which schemes may be assessed. This does not look like speedy progress. I would welcome some clarity from the Minister on when he expects that financial support mechanism to have any impact in the housing sector, which is facing a terrible problem of undersupply.

I personally believe that it is impossible to consider infrastructure without including housing, because accommodation is needed for people just as much they need the roads or rail for access, the power supply and all the other things essential for economic development. I would therefore include provision for housing within infrastructure development. I would do so particularly at the moment because the output of housing is appalling. In the last 12 months, only 98,000 housing starts were made. I put it to the Minister, who was critical of the previous Government’s failure in this respect, that if he goes back to 2007—the last year before the recession hit—we started 185,000 homes. If his Government get anywhere near the level of output of the previous Government, they will be doing very well. They are not there at the moment; they need to go very much further and rather faster than they have. I hope they will think about how this scheme can be used to stimulate housing development.

The one other area I want to touch on is aviation. The Minister was interestingly coy about aviation. We know perfectly well—we are constantly reminded of it, not least by the Mayor of London, who I believe is of the same party as the right hon. Gentleman—that there is a chronic problem of undercapacity for aviation in London and the south-east, and an urgent need for new investment. There are and will be differences about where we believe this increase in capacity should be located. I believe that the Thames estuary is the right location and I have advocated that for a long time—I am with the Mayor on that. Other people believe that Heathrow should be expanded, while others believe Stansted is the right location. But no one who has looked at this seriously believes that we do not need to expand capacity. What have the Government done? Kicked it into touch until after the next general election. That is simply not an adequate response. I put it to the Minister that the Government will have to be more serious and should approach this issue on a more cross-party basis if we really are to get progress in infrastructure investment, which is essential to us.

None Portrait Several hon. Members
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