(10 years, 4 months ago)
Commons ChamberI started out today very much in the same place as my hon. Friend the Member for West Bromwich East (Mr Watson), but I am beginning to wonder whether this is not a matter of a short period of review that leads us straight back into an argument for another similar piece of emergency legislation, versus a longer period of review where we could get the matter right for once.
My hon. Friend puts it much better than I did. That is the truth. We have a compressed programme and there will be complaints again about that, but the House usually rises in the middle of December, and if the Bill were to be repealed at the end of December and the House wanted proper time to consider this legislation, we would need to start on it in early November at least, which is only a few months away. I cannot see that we would be in any better position at that stage than we are now.
(11 years, 1 month ago)
Commons ChamberThe hon. Gentleman is absolutely right that he and I have had direct experience of dealing with Sir David Higgins on a micro-level as well as a macro-level, and very impressive he is too. I do not criticise anybody who either holds or might hold the purse strings for wanting to ensure that we bear down on costs, but those on my Front Bench and the whole of the parliamentary Labour party, as has been made clear, support the project and the Bill. That is why, if a Division is called at 5 o’clock, we will be in the Lobby with the Government in support of the Third Reading of the Bill. Let me make that clear. We started this project and I hope very much that the Labour party is in a position to ensure that we finish it.
Does my right hon. Friend agree that it might help those who want to support the project and perhaps make it easier for the softer opponents if the contingency figure was reduced? At a third of the projected total cost, it seems remarkably high, and it might risk inflating the project’s costs.
I know about optimism bias contingency costs because I faced exactly the same situation when I chaired the Cabinet Committee for the Olympics. My initial reaction was the same as that of my hon. Friend and my right hon. Friend the Member for Holborn and St Pancras: “Why on earth are we building in a contingency reserve on this scale?” I got the Treasury officials in and cross-examined them—I bumped into one the other day who remembers it—but in the end I was convinced that what was proposed was prudent, to use an adjective that used to be owned by the Labour party, and still is. Contingency reserves of that size are sensible and realistic. Yes, the cost is £42 billion, but that is over 20 years, so we are looking at a cost of about £2 billion a year, of which the optimism bias contingency reserve is about £700 million. In my judgment, such things are manageable.