Steve Baker
Main Page: Steve Baker (Conservative - Wycombe)Department Debates - View all Steve Baker's debates with the Department for Transport
(13 years, 11 months ago)
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I am grateful for the opportunity to open this Adjournment debate on the principal infrastructure project of our time: High Speed Rail 2. It is a pleasure to serve under your chairmanship, Mr Weir.
The railway system of Great Britain is the oldest in the world. It developed from a patchwork of private local rail links provided by entrepreneurs, and via amalgamations, temporary state control, nationalisation, highly regulated privatisation and part-renationalisation it became today’s system, which is, as one of my colleagues on the Transport Committee has said, “neither fish nor fowl”.
It seems that this country has tried every conceivable governance model for rail, yet the subject remains contentious. I should like to deal with three questions. First, should a high-speed rail route run through Buckinghamshire—specifically, the Chilterns area of outstanding natural beauty—against the wishes of local people? Secondly, should any area of the country be forced to accept high-speed rail? Thirdly, if transport resources and capital are scarce, what is the best approach to relieving that scarcity? I intend to demonstrate that High Speed 2 should not be run through Buckinghamshire or any area of the country and that a new, more classically Liberal and Conservative approach should be taken towards British transport policy.
I acknowledge the help and support of my Buckinghamshire parliamentary colleagues in preparing this speech. However, I have not sought their approval for this final version. My colleagues in the Government have emphasised that their opposition does not necessarily extend beyond the route. I also acknowledge the large number of high-quality submissions I have received from the people of Buckinghamshire. I am sorry that time has prevented me from including all their important points.
I should like to make clear my support for the Government’s intent. I am certain that the Government—the Transport team in particular—are fully committed to this country’s economic renewal and all-round success, and I applaud them for it. I am most grateful to the Secretary of State for confirming that the public consultation will cover not just the route, but the strategic case for high-speed rail. I am relieved that the Government will make their arguments with an open mind. I shall try to do likewise.
First, on local issues, should a high-speed rail route run through Buckinghamshire, specifically the Chilterns AONB? The Chilterns AONB is a rare, precious landscape benefiting not just those who live there but the millions who visit every year from across the country, particularly, due to its proximity, from London. I have lived adjacent to the AONB for almost three years and can confirm that it is one of Britain’s most beautiful and ecologically rich landscapes.
The preferred route of HS 2 crosses the AONB at its widest point, in contradiction to the policy followed for HS 1. In Kent, the route of HS 1 was amended to avoid the North Downs AONB. By contrast, HS 2 appears to have been deliberately routed through the least spoilt, widest part of the Chilterns.
My hon. Friend mentioned High Speed 1. HS 1 was introduced in Gillingham and Rainham, in Kent, about a year ago and there are lessons to be learnt from that. Does he agree that a new fast service should not be introduced at the expense of the existing train lines? The number of services from Gillingham to Victoria and Cannon Street stations was cut. Lessons have to be learnt. The routes, services and timetable cannot be changed at the expense of HS 1. Another lesson has to be learnt in terms of cost and affordability: HS 1 fares in Kent have increased by 30%.
I agree. I shall return to the economics of HS 1 later.
Some 59 different protected species have been recorded within 1 km of the route of HS 2. The recommended route involves tunnelling directly through an aquifer, risking reducing the water table and exacerbating low flow in the Chess and Misbourne. It also risks possible contamination of the ground water. The environmental impact of the recommended route of HS 2 would be enormous. I am therefore calling for an official environmental impact assessment of the preferred route well in advance of the planned consultation, so that interested parties can fully digest its findings. In Kent, the route was altered to run beside the existing M20, a major strategic transport corridor, which reduced incremental noise pollution and landscape damage. I am surprised that a similar approach has not been adopted for HS 2. The M40 in my constituency is infamous for its proximity to housing and for its meandering path.
Opposition to high-speed rail is substantial in Buckinghamshire. On 7 November, an HS 2 rally took place in Great Missenden, where more than 2,000 people demonstrated their opposition. At the rally, the noise that HS 2 will make was played to the audience. Many were shocked by what they heard. The noise over the speakers may or may not accurately represent what HS 2 will sound like, but it reinforces the need for HS2 Ltd or the Department for Transport to provide noise maps and proper analysis of the noise impact that people will face. HS2 Ltd said, in a letter dated 8 October about noise assessment studies:
“On the subject of noise assessments, an Appraisal of Sustainability is currently being finalised and will be published ready for the launch of the consultation in the new year”.
We are impatient. It is now well over a month since then, but there is no sign of any further information. It is unacceptable for HS2 Ltd to keep delaying this important study.
Part of the planned preferred route slices through a corner of my neighbouring constituency at Denham in Buckinghamshire. The route enters the constituency through a site of special scientific interest in the Colne valley. There is no doubt that the railway line, which at that point would be on some type of viaduct, will have a seriously adverse impact on the environment. For example, the railway would culvert the River Colne along a several hundred yard stretch in an area where there has been a long struggle to maintain the rural aspect of a river valley that has significant environmental importance. With all this in mind, will the Minister please ensure publication of the environmental impact assessment at the earliest possible moment?
There is no benefit to Buckinghamshire from accepting high-speed rail. The project would have to be bullied through against the well-grounded wishes of those affected, causing not just the environmental damage described but also infringing the property rights of large numbers of people. Doing so would thoroughly undermine the Government’s commitment to increasing people’s power over their own lives. From Buckinghamshire’s perspective, the answer to whether HS 2 should run across the county is, of course, a resounding no. Buckinghamshire people are bound to object to a programme that would merely blight our beautiful county and trespass on local people’s businesses and the quiet enjoyment of their homes. I find myself asking, “Should any area of the country be forced to accept high-speed rail?”
Having had the privilege of living in many areas of the country throughout my adult life, it is my view that Buckinghamshire’s arguments would find parallels in most parts of the country, particularly those with designated areas of outstanding natural beauty. Why should anyone tolerate the demolition of their home or business? Why should anyone accept the ruination of a swathe of countryside? Why should anyone agree to so much noise and disruption? The answer, of course, lies in the national interest.
To justify so grotesque an intrusion into property rights and local collective enjoyment of the natural environment, the Government must be certain that the benefits of HS 2 to the whole nation would far outweigh the high costs that would be imposed along the route. Clearly, if a high-speed rail network will usher in a new age of incomparable prosperity for the whole country, regenerating the industrial north and reuniting it with the south, we must all support it.
I congratulate the hon. Gentleman on securing the debate. He makes a strong case, as one would expect from a constituency MP working on behalf of his constituents. Does he accept that there may be some benefits for his constituents? The alternative to high-speed rail is that people do not travel or—more likely—that journeys are made by air or by road. That has an impact on the environment in the form of air pollution, for example, and noise nuisance, which might also affect his constituents.
I am grateful to the hon. Lady for her intervention and I will return to some of those points, in particular how we make a judgment between road, rail and air travel.
If it is not true that high-speed rail is in the national interest, and if such a project will offer only marginal and uncertain benefits at vast expense, it would be in no one’s interest. I am delighted that the Government wish to ensure the prosperity of the whole nation, but it has not been demonstrated that HS 2 will deliver that. To justify such a grievous impact on the people and landscape of Buckinghamshire—and indeed along the entire length of the route, wherever it is located—the Government must place the economic and environmental case for the programme beyond all doubt. I do not believe they have yet done so.
High-speed rail is not commercially viable, so the expense is justified with a wider cost-benefit analysis. That analysis relies on assumptions, including excessive demand, generous benefits and a flawed analysis of the alternatives. I shall only touch on each point today, but I am sure that campaigners will furnish us with full details during the course of the inquiry.
The projected increase in demand is open to challenges that include demand saturation, a broken relationship with GDP, out-of-date data, neglect of new technology, and inadequate anticipation of competition from classic rail—a problem that blighted HS 1. The case for benefits neglects the fact that many of us work on the train, and it depends on implausible levels of crowding. The Department for Transport’s alternative, Rail Package 2, is paid too little attention, despite meeting demand with less crowding than would occur should the HS 2 programme go ahead. At £2 billion, the package is much less expensive. It is better value for money and capable of incremental delivery, setting it free from the risks associated with long-range economic forecasting. Rail companies could lengthen trains to nine, 10 or 11 cars. That would increase capacity from 294 to 444 seats—an increase of 51%. Unused first-class capacity could also be swapped for standard seats, thereby further increasing total capacity.
It is a myth that the UK lacks a fast national railway network; we have had one for a long time. We have routes capable of 125 mph, with quicker rail journey times between the capital and the five largest cities than in other major western European countries. For instance, the average journey time in the UK is 145 minutes. It is 151 minutes in Spain, 184 in Italy, 221 in France and 244 in Germany. In short, it appears that for £2 billion, the Government could have a complete, low-risk but unglamorous solution to the problem of rail capacity, and rather sooner than HS 2 could be delivered. Therefore, I am not convinced that £30 billion—or more—of taxpayers’ money would be wisely risked on HS 2.
Does my hon. Friend accept that every infrastructure investment and transport initiative imaginable could, in the short term, be done more cost-effectively with the sort of incremental approach he has just mentioned? That does not take away the need to think strategically, and occasionally to do things that are more than just incremental.
My hon. Friend makes an interesting point that we should explore at some length. In the final part of my speech I shall set out why I think we have been taking the wrong approach to infrastructure in this country.
Targeted investment in existing infrastructure would ultimately offer greater benefits to the whole country not served by HS 2, including the south-west, south Wales, East Anglia and the north-east. Such an approach would provide a visible demonstration of productive investment during a time of austerity. I am aware that the environmental case for HS 2 can be similarly attacked, but given the time, I shall simply quote Mr Steve Rodrick, chief officer of the Chilterns Conservation Board:
“The case for HS 2 is largely built on capturing the internal aviation market, but 80% of all journeys between Manchester and London already involve the train…These trains will use double, possibly triple, the energy of normal trains. Where’s that energy going to come from? You either have to bank on nuclear coming on stream or, more likely, power stations running on fossil fuels, which will involve significant carbon emissions.”
I also recommend Christian Wolmar’s 15 September article for RAIL magazine, which states that the arguments against HS 2 are mounting. His tour de force concludes by explaining that HS 2 would absorb money that would otherwise be spent on classic rail in an environment of reduced funding. He writes:
“We cannot have it all. Let’s work to protect what is essential, rather than trying to reach for the moon.”
Finally, I will turn to rail policy and transport strategy in the round. If transport resources and the necessary land and capital are scarce, what is the best approach to ensure optimal resource allocation? It has long been argued by the Conservative party, as it was once argued by Liberals, that unhampered social co-operation in the free market is the most efficient and effective way to allocate resources and relieve scarcity. With that in mind, I asked the House of Commons Library to prepare a summary entitled “Price controls and state intervention in the rail market.” It is not, of course, a simple statement that there are no price controls or state interventions in the rail market; it is six pages long and covers passenger franchise specification, the control of fares and rolling stock procurement. It also sketches the process of almost continuous organisational change that has dogged rail since nationalisation in 1948. Contemporary rail is not characterised by property rights, freedom to contract, open competition and unhampered prices.
My task today is not that of setting out a new free market transport strategy, and I will not pretend I am able to do so. However, I wish to emphasise that rail, and road transport in particular, are not capitalist systems in the conventional sense but hybrid systems of heavily regulated and subsidised public and private companies. We have inherited a rail system whose franchise agreements descend into such detail as specifying a “biennial talent management programme” and even “time with your manager sessions.” That is not freedom to contract, and clearly rail operators are not free to set market fares.
Of course, I do not want fares to rise any more than my colleagues do, but we should admit that the rail system does not operate in a free market and that therefore economic calculation is likely to be hampered, if not irrational. We simply cannot know whether today’s rail economics are optimal, but it seems likely that they are not.
The hon. Gentleman is making the point that the current rail network is not a truly free-market, capitalist system, but will he not accept that there is a role for the state to play in markets where there is market failure—for example, where there has to be a national network—as has been well documented by many economists? Will he also confirm that he stood on a manifesto platform at the election that promised to
“begin work immediately to create a high speed rail line connecting London and Heathrow with Birmingham, Manchester and Leeds”
as the “first step” towards achieving a vision of a
“national high speed rail network to join up major cities across England, Scotland and Wales”?
I am most grateful to the hon. Lady for giving me an opportunity to deal with that point, in which I see she takes some pleasure. In the first place, I note that economists take a range of views on these matters, and mine are perhaps rather more free market than most. On the second point, about the manifesto, Conservative candidates across Buckinghamshire stood for election saying they would oppose HS 2 and knowing that that was in contradiction to the manifesto. I personally made it clear at the time that I would oppose HS 2.
If it is true that economic calculation is likely to be hampered, if not irrational, under the present system—I am certain that it is—we should not be surprised that there is so much disagreement about economics in respect of rail. We should not be surprised when the Institute of Economic Affairs estimates that the return on HS 1 is less than half of 1% of the Government’s investment per year. Nor should we be astounded that some markets for high-speed rail already show signs of saturation. For example, demand on the lines from Tokyo to Osaka and Brussels to Paris is not growing anywhere near as fast as forecast. According to the Financial Times, China is reviewing its high-speed rail plans for affordability and practicality. Its latest high-speed line is operating at less than half capacity, and it is projected that the lines will never make enough money to repay the large loans used to build them.
I shall leave the last word on the economics of high-speed rail to the IEA’s Dr Richard Wellings, who wrote in relation to High Speed 1:
“Perhaps an unsubsidised international service could just about cover maintenance costs, with the sunk capital effectively written off. But far better returns could almost certainly be achieved by shutting down the line and disposing of the assets—which include substantial plots of land, tunnels under London and the Thames, and large amounts of scrap metal.”
HS 2 should certainly not be driven through Buckinghamshire, where it would have an egregious effect on some of our finest countryside, but it is not clear at all that HS 2 should be driven through any part of our country. HS 2 appears economically irrational: it requires tens of billions of pounds to increase the UK’s transport capacity by about 1%. Less money could be better spent. Moreover, that economic irrationality is almost certainly attributable to the prevailing orthodoxy in rail policy. It is an orthodoxy of planning, not the free market. We are at the end of a wasteful century of socialisation. Today, the basis of transport and, more broadly, infrastructure economics presupposes planning. It should therefore be no surprise that transport is characterised by scarcity, excessive prices and political tension.
To return to where I began, I applaud sincerely the Government’s noble intent, but I note that rail has not been governed by the free market for a very long time. There is no doubt that this country needs good-quality infrastructure. We should create the conditions in which unsubsidised enterprise can deliver the optimal solution. That would be the classical Liberal and Conservative approach. In my view, the solution that would emerge is not likely to be high-speed rail. I believe that this programme should be cancelled.
When I first looked at the plans for High Speed 2, I was principally concerned with its immediate impact on my constituency where it comes into Euston station. Its effect there would be the demolition of 350 flats, about two thirds of a small park, St James’s gardens, being concreted over, a massive inhibition on the much-needed rebuilding of Maria Fidelis Catholic girls secondary school, and problems for people in the Primrose Hill area, whose homes would be tunnelled under in a big way. However, the more I looked at the proposal, the more I thought that it was not just a matter of the damage that it was likely to do in my constituency, but that the whole project of bringing the line into Euston station and other aspects of the proposal were daft and expensive.
In saying that the London terminal should be Euston station, the projectors had to come up with ways of coping with the fact that Euston station is not on the Heathrow Express line and is not intended to be on the Crossrail route, so it does not have major connections that would be important for High Speed 2. To cope with that, the projectors proposed building a sort of super-parkway station at Old Oak Common—more commonly known as Wormwood Scrubs—and then rebuilding Euston as well. Bringing the line into Euston would also involve the boring of a 5½ mile tunnel, which as we all know is a fairly expensive item.
If the projectors had instead proposed that the line came into Paddington station, that would have made sense, because Paddington is already the terminus for the Heathrow Express and will be on the Crossrail route. The idea of coming into Euston seems to spring entirely from the fact that trains from Birmingham have always come into Euston. There is no more justification for it than that.
When I looked at the plan more widely, it seemed to me that there were other major shortcomings with it. High Speed 1 has been a great success, and certainly the refurbishment of St Pancras station in my constituency—I think that I was the first person to suggest that St Pancras should be the High Speed 1 terminal—has been a great success. The idea that we shall have just one leg of a high-speed system coming into London but not connected to High Speed 1 seems simply stupid. If we are to have a high-speed rail system that is on the end of the high-speed system in the rest of Europe, it would not be a bad idea if it was connected to it, which is not the present proposition.
Similarly, if only one leg of the system from the north will come into London, that will mean that the system is vulnerable to a major crash or terrorist activity that would close down the whole system. I make no comment on where the line should run outside London, but it seems to me that rather than a Y-shape arrangement, there ought to be an H-shape arrangement, so that coming into London are two legs, at least one of which is directly connected to High Speed 1 and would allow trains to come from the east side of Scotland, and the north-east and Yorkshire, and, if they wanted to, come into Paddington. Other trains from, say, Glasgow or Manchester would be able to cross over and come into wherever the link to High Speed 1 was located.
The scheme is badly thought out and extremely expensive. It will be amazingly damaging for my constituency. It should be withdrawn and criteria should be established that set out what on earth it is supposed to achieve. We should then come up with proposals that go some way towards achieving that.
I will move on to the scheme’s affordability. I have, in theory, a degree in economics. I am convinced that economic forecasts for more than 18 months nearly always turn out to be total rubbish. I therefore do not give much weight to anybody’s economic forecasts or assessments of viability for or against the scheme. History shows that all the major railway engineering projects of the 19th century went bust, were involved deeply in fraud or, more commonly, both. I do not think that a major railway project has ever paid back the original investors, unless they have benefited from fraud, such as the huge Ponzi scheme of the line to the north-east. I think we must accept that such projects never will repay their investors and that there is no free-market solution. Apparently, the Institute of Economic Affairs wants to rip up High Speed 1.
On coming to this place, I did not think that I would find myself much in agreement with the right hon. Gentleman, but I am delighted to hear him speak against rail. Would it not have been good if the market had stopped the rail programmes that he has mentioned because insufficient people freely chose them to make them profitable? Money would then not have been wasted on such infrastructure.
I have never heard anybody suggest that the 19th-century railway boom in every industrialised country in the world did not contribute substantially to the economic development of those countries. Perhaps some people at the Institute of Economic Affairs are so stupid and reactionary that they believe that, but that is by the bye.
The impact of the scheme on my constituency will be dreadful and I reject it on a parochial basis. I also believe that it is ill thought out and will not achieve most of the things that are sought by people who are in favour of a high-speed system in this country.
It is a pleasure to serve under your chairmanship, Mr Weir. I warmly congratulate my hon. Friend the Member for Wycombe (Steve Baker) on securing this important debate.
I take a strong interest in the issue at two levels: strategically, as a member of the Select Committee on Transport and because High Speed 2 is a key component in the debate on our national transport infrastructure; and locally. Although the proposed route does not go through my constituency in Milton Keynes, it runs close by, just a couple of miles from my western border, which is close enough for me to have a say in the debate in a local context and to understand the justifiable concerns of many villagers along the proposed route.
I will put my cards on the table right at the start. From all the evidence that I have seen, there is a strong case for an additional north-south strategic rail route in the United Kingdom and for that route to be capable of running the latest generation of high-speed trains. However, I am far from convinced that the detail of the proposed route is correct.
We run the risk of an enormous and costly error in this country if we do not get the details right, which is why I warmly welcome the recent assurance by the Secretary of State and the Minister that the inquiry into High Speed 2 will examine both the strategic case and the specifics of the proposed route. Frankly, we get one shot at making the project work and, vitally, if it is to succeed, it must be done on the strongest evidence and commanding broad-based support in the country.
One strategic argument is that, instead of ploughing billions of pounds into constructing a High Speed 2 line, the money—smaller amounts even—could be better used upgrading what are known as the classic rail routes. I regard that as a false choice.
As any regular user of the west coast main line knows, it is already getting pretty close to capacity, even after the substantial investment and upgrades in recent years. If anyone doubts that, I invite them to go to Euston station at 7 o’clock on a weekday evening and try to board the Manchester train. Virgin has to employ people who are basically crowd-control managers to prevent ugly scenes. The line has other pinch points as well.
Does my hon. Friend agree that ugly scenes as a result of scarce resources are typical of socialism?
My hon. Friend tempts me down an interesting line of debate but, in the interests of brevity, I will resist that temptation.
At the moment, the classic network has pinch points. Yes, certain upgrades could be made—trains could be lengthened by a couple of coaches, there is room for one additional train movement in and out of Euston at peak times and the speed on the line could be increased a little. All those things can be done, but they would only buy time.
The choice, however, is not between doing those things and investing in High Speed 2. If we look at the time frame for High Speed 2, there is a gap between the existing capacity and what is needed in current years. I believe we have to do both—upgrade the classic rail routes and plan for the long term with High Speed 2. Simply, the forecast increase in the UK population and our increased willingness and desire to travel more and in comfort, mean that the extra capacity is required.
I accept the general case that there should be a route from London to Birmingham, Leeds, Manchester and cities in the north of England and in Scotland. However, it is important that the business case is rigorously tested. From a common-sense layman’s perspective, we need to challenge why certain aspects of the current HS 2 case seem to be omitted or rejected. Time constraints prohibit me from going into those in detail, but let me flag up one or two of the issues, which other Members have raised.
Why does High Speed 2 not connect with HS1? It is crazy not to connect them, in my view. I had a meeting with the chief executive of Crossrail recently, and I asked him, “Has anyone considered using Crossrail as a link between High Speed 1 and High Speed 2?” He said, “You’re the first person who’s ever proposed that to me.” Such a link may not be the answer, but it is surely the sort of issue that we should look at as we consider a multi billion pound scheme over many years. Has High Speed 2 been considered in the context of broader UK aviation policy? Should we not look at connecting Birmingham airport, Heathrow and other airports in the midlands and the south as part of our total transport policy?
Why are we not looking more at intermediate stops along the line? I have enormous sympathy for the point made by my hon. Friend the Member for Wycombe, who said that Buckinghamshire would have all the pain but none of the gain because there would be no access point along the route. The French TGV system has intermediate stops at different points. This summer, I travelled on the line down to the Mediterranean, and there is a stop at Valence. It is constructed in such a way that it does not impede the fast trains that shoot through, but it gives access to many towns and cities in that part of France. If I may, I would like to put in an early bid for an Iain Stewart international gateway station to serve Milton Keynes and the surrounding areas.
There are justifiable environmental concerns, but I urge those who are concerned about the environmental impacts to look closely at other high-speed lines around the world. The use of proper cuttings and natural cuttings can minimise a lot of the noise and visual damage.
I want now to make a more strategic point. Everyone who objects to rail schemes believes that they will be ugly and unsightly, but they need not be. This country has a proud tradition of building infrastructure projects—particularly rail infrastructure projects—that enhance the environment. The Forth bridge, the Ribblehead viaduct and Brunel’s bridges and tunnels are things of beauty, and, done properly, the projects that we are talking about could actually enhance the countryside. I do not want to create some ghastly, ugly concrete jungle, but for goodness’ sake, if we are going to make High Speed 2 a national project, let us use it to showcase what we can do. I have mentioned examples of older infrastructure projects, but we could look at modern ones, such as the Millau viaduct in France, which enhances the environment.
It is absolutely right that we consider the strategic case to make sure that the numbers stack up. Equally, everyone along the route must have their say as to why the line should or should not go through a particular locale. However, let us do things with a positive attitude. We need High Speed 2 in this country and we get one shot at it. When we have the inquiry, which I strongly welcome, let us undertake it with a positive attitude.
I entirely agree and thank my hon. Friend. He and I have neighbouring constituencies and we are working closely together on this. We are watching closely, because if the Y-shaped junction is not in my constituency, it is likely to be in or close to his. People need to know about this issue. Knowing one is going to be devastated by something is one thing; believing one might be but not knowing is even worse. There are people on a route that appeared briefly on one map—with a dotted line that disappeared from subsequent maps—who were effectively blighted, but who were unable to take part in the exceptional hardship scheme or any other compensation scheme. They are blighted through uncertainty, not through an actual line on a map. It is important that that topic be addressed as quickly as possible.
However, I am going to be brief so that someone else can say a few words. I want to make two pleas to the Minister. The first concerns the exceptional hardship scheme. I ask her to look in detail at what has happened so far—at those who have been approved and those who have not—and satisfy herself that the current scheme is transparent and working properly. I have had constituents refused under the scheme, and who were given reasons that were not listed as factors on any previous document or in the frequently asked questions relating to the scheme. That suggests that the scheme is not transparent and that to a large degree, the panel is making it up as it goes along. It is fundamentally wrong for people, having looked at the published documentation and believed that they ticked all the boxes, to then be turned down on criteria they did not even know were to be considered.
Does my hon. Friend agree that this is a rule-of-law point, as classically understood? People should know well in advance what the rules are—fixed, well-known rules that affect their property.