High Speed Rail (London – West Midlands) Bill

Robert Goodwill Excerpts

Wednesday 23rd March 2016 Commons Chamber

[The Minister of State, Department for Transport (Mr Robert Goodwill)]

I beg to move, That the clause be read a Second time.

[Madam Deputy Speaker (Mrs Eleanor Laing)]

With this it will be convenient to discuss the following:

New clause 1—Reimbursement of local authorities for expenses and lost business rate revenue resulting from HS2—

‘(1) The Secretary of State for Communities and Local Government and the Secretary of State for Transport shall conduct an assessment of costs incurred by local authorities that arise directly and indirectly from the construction and future operation of HS2, including staff costs, and shall ensure that such additional funding as is required to reimburse local authorities for those costs is made available.

(2) To the extent that such additional funding is not made available through service level agreements, the Secretary of State for Transport shall make the additional funding available through other means of local authority funding within six months of the end of the relevant financial year.

(3) The Secretary of State for Communities and Local Government shall appoint an independent auditor to assess the extent of any shortfall in local authority revenue attributable to closure of or movement of businesses and consequential diminution in business rates.

(4) The Secretary of State for Transport shall establish a mechanism whereby any such shortfall shall be made good within six months of the end of the relevant financial year.’

This new clause is intended to give statutory enforceability to the Department for Transport’s intention to reimburse local authorities for costs consequential on the construction of HS2, and to ensure that there is compensation for lost business rate revenue.

New clause 2—Reimbursement of local authorities for damage to highways resulting from HS2 construction—

‘The Secretary of State for Communities and Local Government and the Secretary of State for Transport shall conduct six-monthly assessments of the amounts required to repair and make good highways in each county following construction of HS2 Phase One, and shall ensure that such additional funding as is required to meet those amounts is made available to local authorities.’

This new clause is intended to give statutory enforceability to the Department for Transport’s intention to reimburse local authorities for highways repair costs consequential on the construction of HS2.

New clause 3—Amount of funds allocated to the Business and Local Economy Fund and Community and Environments Fund—

‘The Secretary of State for Transport shall allocate a sum of £150,000,000 to the funds established to support business and local economy and community and environment initiatives to mitigate and address the effects of HS2 construction.’

This new clause is intended to increase the amounts allocated by the Department for Transport to the Business and Local Economy Fund and the Community and Environment Fund from £30m to £150m.

New clause 4—Compensation procedures—

‘(1) The Secretary of State for Transport shall ensure that included within contested valuation procedures for claimants under statutory or discretionary HS2 compensation schemes are processes for valuation by a valuer with knowledge of local markets.

(2) The Secretary of State shall ensure that all compensation applications are acknowledged within a period of two weeks and responded to substantively within a period of ten weeks, failing which the application will be deemed accepted.’

This new clause is intended to insert procedures for valuation by local valuers in disputed compensation cases, and to seek to ensure timely responses to compensation applications.

New clause 20—Public Sector Operators—

‘(1) Section 25 of the Railways Act 1993 (c. 43) (public-sector operators not to be franchisees) does not apply in relation to the franchisee in respect of a franchise agreement—

(a) which relates wholly or mainly to the provision of one or more Phase One of High Speed 2 passenger services, or

(b) which relates wholly or mainly to the provision of one or more other services for the carriage of passengers by railway where—

(i) the services run wholly or partly on the route of Phase One of High Speed 2, and

(ii) the services are likely to be subject to substantial disruption because of the construction of Phase One of High Speed 2.

(2) The following may in particular be taken into account in determining whether, for the purposes of subsection (1)(b), services are likely to be subject to substantial disruption—

(a) the frequency with which the services are likely to be disrupted,

(b) the duration of the period in which the services are likely to be disrupted (and, in particular, its duration relative to the length of the franchise term),

(c) the severity of any likely disruption.

(3) In this section—

“franchisee”, “franchise agreement” and “franchise term” have the meanings given by section 23 of the Railways Act 1993 (designated passenger services to be provided under franchise agreements).’

New clause 21—Financial Reports—

‘(1) The Secretary of State must prepare a report on expenditure under this Act in relation to each financial year.

(2) Each report must contain details of—

(a) expenditure incurred during the financial year to which the report relates (with capital and resource expenditure specified separately in relation to construction and other activity under this Act and in respect of each head of expenditure referred to in section 1(4)(a) to (c) of the High Speed Rail (Preparation) Act 2013);

(b) the extent to which expenditure incurred during that year represents an overspend or underspend as against the budget for such expenditure for the year;

(c) the likely effect of any such overspend or underspend on a total budget of £55.7 billion in 2015 prices (which includes construction and the cost of rolling stock);

(d) total expenditure incurred under section 67 up to the end of that year;

(e) sums or assets received in that year in connection with expenditure incurred under this Act, including in relation to section 48.

(3) In this section, “financial year” means—

(a) the period beginning with the day on which this Act is passed and ending;

(b) each subsequent period of 12 months.

(4) The Secretary of State must lay each report under this section before Parliament as soon as is reasonably practicable after the end of the financial year to which it relates.’

New clause 26—Protection of business continuity by extended notice of entry in the case of vulnerable businesses—

‘(1) If an operator of a business or undertaking believes that the business or undertaking’s continued operation or profitability would be vulnerable if inadequate notice is received of the planned exercise of powers under sections 4, 5, 6, 12 or 15 of this Act and the associated schedules, the operator may notify the Secretary of State of this belief.

(2) For the purposes of subsection (1), “inadequate notice” means a period of notice that would not provide a reasonable amount of time for the business or undertaking to relocate to a new premises and refit that premises to a reasonable standard before the exercise of the powers.

(3) Upon receipt of such notification, the Secretary of State must facilitate a dialogue with the operator in relation to timing and funding of business relocation, and required notice periods, and shall consider the reasons for the operator’s belief.

(4) Unless the dialogue provides a satisfactory resolution within three months of initial notification—

(a) a 12-month minimum notice period shall apply for the exercise of powers mentioned in subsection (1) in relation to the relevant business or undertaking; and

(b) the early compensation payable to the operator shall be 100%, not 90%, of the estimated relocation costs, and such compensation shall be payable in full, nine months before the anticipated relocation date notified by the operator.”

New clause 27—Report on classification of HS2 as England-only project—

‘Within 3 months of this Act receiving Royal Assent, the Secretary of State must lay before both Houses of Parliament a report on—

(a) the classification of HS2 as an England-only project for the purposes of Treasury expenditure, and

(b) how much extra money Wales would receive in terms of Barnett consequential money as a result of such classification.’

This new clause would require the Secretary of State to produce a report on reclassifying HS2 as an England-only project for the purposes of calculating Treasury expenditure through the Barnett Formula and how much more money Wales would have received as a result.

New clause 30—Community detriment fund—

‘(1) The Secretary of State must establish a community detriment fund.

(2) The community detriment fund will provide an additional source of funding to communities, supplemental to that available through the community and environment fund.

(3) The community detriment fund will be available to address adverse impacts of HS2 construction on communities, including but not limited to impaired accessibility, diminution in availability of community amenities, and physical effects of construction.

(4) A principal objective of the fund will be to remove the need for formal compensation claims and to provide an expedited means of claiming funding for detriment.

(5) The fund will be available only to address adverse effects on communities, not impacts on individual households, businesses or undertakings.

(6) Among the measures that may be considered as available for funding to address detriment shall be transport facilities such as shuttle services.’

New clause 32—Review of fairness of rural support zone compensation—

‘The Secretary of State must conduct a review of the reasons for situating the boundary of the Rural Support Zone in west London which shall be laid before both House of Parliament within three months of this Bill receiving Royal Assent.’

New clause 33—Compensation—

‘(1) Within three months of this Bill receiving Royal Assent, the Secretary of State shall lay before both Houses of Parliament a report responding to a review of compensation applicable to those affected by HS2 Phases One and Two which shall by then have reported in accordance with directions already issued.

(2) The review shall consider the following—

(a) whether a compensation framework based on a property bond system could be an equally or more effective means of compensating those affected by blight from HS2 construction and operation while maintaining a functioning property market, having due regard to demands on public expenditure and investment;

(b) whether the current rateable value limit for compensation and blight claims by owner-occupiers of business premises should be abolished or amended;

(c) whether loss payment ceilings are fair and appropriate;

(d) whether a higher proportion of advance compensation for relocation than the current 90% should be payable in certain instances;

(e) whether the time limits for claiming compensation where no land is taken should be re-evaluated;

(f) the position of those affected by blight caused by HS2 whose property is subject to mortgage and who may find themselves unable to remortgage or in a position of negative equity as a result of such blight;

(g) whether those considering a claim for compensation should receive advance payment of fees for professional advice.’

Amendment 15, in clause 48, page 18, line 8, after “considers” insert

“having regard to the relevant development plan,”.

[Mr Goodwill]

I must confess that I feel like a queue-jumper, because I added my name and the Government’s support to new clause 19 and amendment 15 only last night. I will be brief, because I know that the hon. Member for Middlesbrough (Andy McDonald) will want to expand on them and to explain why his case was so convincing and compelling. It is another example of how our new railway will be delivered not only on a cross-party basis in this House, but with the support of the great cities of the midlands and the north.

I welcome new clause 19 on vocational qualifications. I strongly believe in the importance of ensuring that we utilise the opportunities that HS2 will create for skills and jobs, which is why we have invested in the National College for High Speed Rail. New clause 19 will further bolster the importance of delivering skills as part of the development of HS2. As such, the Government support it becoming part of the Bill.

[Sir Henry Bellingham (North West Norfolk) (Con)]

I am grateful to the Minister for giving way, because I know that he needs to get on. Does he agree that it is important that the National Construction College and the Construction Industry Training Board are closely involved in this skills initiative?

[Mr Goodwill]

Indeed, I look forward to being in Doncaster soon with the right hon. Member for Doncaster Central (Dame Rosie Winterton), the Opposition Chief Whip, to cut the first sod in that project. It is important that we look at skills across the board. The college’s hub and spoke arrangement will enable other educational establishments to engage fully and will allow for other qualifications.

Similarly, I welcome amendment 15 from the Opposition. It relates to clause 48, the purpose of which is to ensure that the regeneration opportunities presented by HS2 are maximised in a timely manner. It is a backstop power and we expect that local authorities will lead such opportunities using their existing powers, but in the event that development is impeded we will have the ability to step in to ensure that development progresses. It is important that such development takes into account relevant development plans. I am grateful that the hon. Member for Nottingham South (Lilian Greenwood) tabled the amendment, and I urge all hon. and right hon. Members to support it.

Turning to the other proposed changes, my right hon. Friend the Member for Chesham and Amersham (Mrs Gillan) has proposed several new clauses and amendments. She has been a tireless advocate for her constituents affected by HS2. However, all her points have been considered before, at length, through the Select Committee process, parliamentary debates, and the many parliamentary questions she has asked my Department. The process has delivered clear benefits to her constituency, including a 2.6 km tunnel extension, meaning that almost 86% of the route in her constituency is tunnelled, with the rest in a cutting. Her constituency has also benefited from the removal of an area of sustainable placement at Hunts Green and more noise barriers along that cutting. I acknowledge the points made but do not believe that new clauses 1 to 4 should be added to the Bill.

New clause 20 deals with the nationalisation of rail services, an area of ideological difference between the Government and the Opposition. I am therefore unlikely to convince them on it, and, I suspect, vice versa. It is clear to the Government that the franchising process delivers better services, better value for money and a better railway. Since privatisation, the rail industry has been transformed, with the number of passenger journeys more than doubling over the past 20 years. We believe this remains the right approach overall for Britain’s railway.

In any case, the new clause is unnecessary, as under the existing legislative framework it is possible for the state to operate rail services, as happened temporarily on the east coast main line. It is possible, and indeed quite likely, that the state might run HS2 initially, to prove certainty on operation and passenger numbers, but for the long-term successful future of HS2 a privately operated franchise is the best way forward.

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

The Minister is giving a pretty fair assessment of how he sees this proceeding. The new clause provides for a permissive power, meaning that it would simply be available going forward. The proposal has been mirrored in previous legislation, such as that dealing with Crossrail, so what is the Government’s objection to a permissive clause of this kind?

[Mr Goodwill]

I thought I just said that this power is already available and therefore this is a superfluous new clause and we do not need it to give us these powers. I very much doubt Opposition Members will agree with my view that nationalisation of the railways is not the way forward, so stuck as they seem to be in the 1970s, but I hope I may have provided sufficient explanation as to why this power is not required.

We have given consideration to the other proposed new clauses and amendments. Although I understand the importance of some of the issues raised, I do not believe they belong in the Bill, as they have already been considered during the Select Committee process. To conclude, in order not to take up any more time than is necessary, I hope that right hon. and hon. Members will be able to support the inclusion of new clause 19 and amendment 15, but I urge them to not to press the other proposals, which I do not believe are required.

[Andy McDonald (Middlesbrough) (Lab)]

I am pleased to be able to contribute to this important debate and play a part in this Bill’s progress. We fully appreciate the importance of this vital piece of infrastructure and the benefits it will bring to our country for generations to come. It is not common to find such consensus in this House, but I am pleased that both the Government and the Opposition understand the need for this high-speed railway. HS2 was, of course, the brainchild of the previous Labour Government, but I readily acknowledge the work that the current Government have done in progressing the project. It is to be very much welcomed for the country that we have such consensus across the House on such important national infrastructure projects.

In that same vein, I shall discuss new clause 19, which stands in the name of the Minister, as well as in my name, those of some of his colleagues and that of my hon. Friend the Member for Nottingham South (Lilian Greenwood). It deals with vocational qualifications.

--- Later in debate ---

[Mrs Gillan]

The hon. Gentleman’s point about inaccurate assessments is, I am afraid, repeated throughout dealings with HS2. This is a particularly bad example. The Woodland Trust petitioned HS2 for a minimum planting ratio of 30:1 to compensate for the fact that irreplaceable habitats will be lost, and the planting of 2 million trees along the wider route is just the starting point. I would have hoped that that could be put in the Bill, which would have made the provision legally binding and ensured that at least some structured replanting and maintenance took place.

[Mr Goodwill]

May I underline our commitment to no net environmental loss and our commitment to plant 2 million trees, which will be managed to the best arboricultural standards? One of the problems that we had with the assessment of ancient woodland was getting access to land to carry out such assessments, because some landowners would not grant us access. That will not be a problem with further phases, because we have taken those powers as part of the Bill.

[Mrs Gillan]

I am grateful to my hon. Friend for that clarification. I wish I could take it at face value.

[Mrs Gillan]

The hon. Gentleman makes a very valid point. Quite frankly, the fact that anybody actually says they would replace ancient woodland just shows the ignorance of some of the people dealing with this matter.

[Mr Goodwill]

rose—

[Mrs Gillan]

The Minister is determined to get in again. As we have not heard a lot from him, I will give way.

[Mr Goodwill]

May I just make the point that translocation of ancient woodland soils is recognised by Natural England as an important mechanism for aiding the creation of ecologically valuable woodlands? If properly planned and undertaken, that can be an important element of compensatory measures, where the loss of ancient woodland is unavoidable.

--- Later in debate ---

[Andy Slaughter]

Given the lack of time, I shall speak only to amendment 16, tabled in my name, which seeks to give statutory protection to Wormwood Scrubs common. I should really say “more statutory protection” because, as metropolitan open land and strategic defence land, it is already protected by an Act of Parliament. More importantly, it hosts an extraordinary range of sports and pastimes. Thousands of disabled children ride at the pony centre every year. An organisation called the Friends of Wormwood Scrubs is seeking to protect its 200 acres of semi-wilderness, which form a substantial proportion of my constituency—an area in which open spaces are at a premium.

However, in the time since HS2 was proposed, we have been asked to put a viaduct across it, and we have been told that it could be turned into formal gardens and that it could be amenity space for the luxury flats being built around the HS2 route. We are now being told that it will be a transit way for hundreds of thousands of people to walk across, which would essentially destroy this London landmark forever.

Although I clearly will not today get the protection that I am seeking, I thank the Select Committee for recognising my representations and acknowledging that they were my only representations. I say to the Government and to HS2 Ltd that it will be a crime if this open space is despoiled over the course of the development.

I wanted to make some more general comments as I think my constituency will see more development than any other. I will not say that I am as adversely affected as other hon. and right hon. Members, and some of the development is of course welcome, but if I am able to catch your eye on Third Reading, Madam Deputy Speaker, I can perhaps make some of those points then. I entirely support what my hon. and learned Friend the Member for Holborn and St Pancras (Keir Starmer) and my hon. Friends the Members for Hampstead and Kilburn (Tulip Siddiq) and for Ealing Central and Acton (Dr Huq) said about the effect on their residents and businesses. As they used to be my constituents, I mention the residents of Wells House Road, Midland Terrace and Stephenson Street, whose homes will be blighted for many years to come and will be entirely surrounded by HS2 works.

I could have tabled something similar to new clause 22 asking for the Old Oak Common development to be regulated, but that should not be necessary because the London Sustainable Development Commission is there to deal with such matters. At the moment, however, it is not working. I hope that it will work under a new Mayor, because we currently have unregulated development on the site and a huge opportunity cost, which is not allowing for proper exploitation of and investment in that land.

[Mr Goodwill]

The new clauses and amendments principally concern environmental issues, which the Government take very seriously. The Bill and the environmental minimum requirements establish robust environmental controls that have proved to be an effective mechanism on other projects, such as Crossrail and the channel tunnel rail link. In addition, many of the new clauses and amendments relate to issues on which we have already provided assurances through the Select Committee process. Some comments were made during the debate, not least from the Opposition Front-Bench team, about those assurances not being worth the paper on which they were written, but they are commitments made to Parliament by the Secretary of State and are enforced by Parliament. The process worked well for Crossrail and the channel tunnel rail link, so we do not need a belt when have more than adequate braces—or “gallusses” as we call them in my part of the world. The Select Committee process led to nearly 400 alterations to the scheme and provided some 1,600 assurances and undertakings to those affected by HS2.

I specifically want to touch on new clause 22, relating to the development of an integrated station at Euston, and I was pleased that the hon. and learned Member for Holborn and St Pancras (Keir Starmer) managed to catch your eye, Madam Deputy Speaker. We share an ambition for the integrated redevelopment of Euston station and assurances have been provided to the London Borough of Camden. Indeed, I recently met the leader of the council to discuss such matters. Work is already under way regarding the commitments given in the assurances to Camden, Transport for London and the Greater London Authority on the overall integration of works at Euston and the co-ordination with Crossrail 2. I can also confirm that funding is available to progress initial feasibility work for the preparation of an outline masterplan for Euston station, which includes the classic, Network Rail element of the station.

[Andrew Bridgen]

Will the Minister inform the House how many conventional platforms will have to be sacrificed at Euston to accommodate HS2?

[Mr Goodwill]

We have made it quite clear that phasing the development of the high-speed platforms at Euston will give us the opportunity to carry out some of that work, and we have changed the phasing to make it possible to operate other services into Euston. Indeed, we estimate that around a third of HS2 passengers will alight at Old Oak Common and use the Elizabeth line to access central London or Heathrow. While I recognise the desire to highlight the importance of such issues through new clause 22, legislation is unnecessary for Euston when progress has been and is being made.

Transparency was mentioned by several hon. Members, including my hon. Friend the Member for Banbury (Victoria Prentis), and we have appointed a residents commissioner to hold HS2 Ltd to account for how it communicates with residents and have committed to appoint a construction commissioner to deal with complaints that cannot be addressed by HS2 Ltd and its contractors. I hope that also reassures my right hon. and learned Friend the Member for Beaconsfield (Mr Grieve).

On the Chilterns area of outstanding natural beauty review group, we have already committed to establish a Chilterns AONB group.

[Mr Grieve]

Will the Minister give way?

[Mr Goodwill]

I must make progress because we have only a minute left. On residential demolitions, we have committed to, and are progressing with Camden Council on, the replacement of all lost social housing in Euston as a result of HS2. On the prohibition of vehicles, an issue raised by my right hon. Friend the Member for Meriden (Mrs Spelman) and my hon. Friend the Member for Banbury, the Bill already requires local authorities to approve local routes, so the amendment on that is unnecessary.

Many of the proposed new clauses and amendments would duplicate existing obligations already made to Parliament, and I do not believe it necessary to include them in the Bill. I therefore urge hon. Members to reject the proposed new clauses, new schedules and amendments.

[Mrs Gillan]

In the light of the unsatisfactory reply from the Minister and the fact that he has relied again on saying that his appointees are adequate for the scrutiny of this project, I will have no other choice than to push new clause 8, which deals with the office of the HS2 adjudicator, to a vote. As for new clause 6, I beg to ask leave to withdraw the clause.

Clause, by leave, withdrawn.