High-speed Rail

Susan Elan Jones Excerpts

Wednesday 13th July 2011 Westminster Hall

[Susan Elan Jones (Clwyd South) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Gray.

I am pleased that the building of a high-speed rail line, which was first proposed by the previous Labour Government, is supported by the present Government, as it is important that there is consensus on the issue. The project certainly makes sense. It is ridiculous that, by rail, I can get from London to Paris faster than I can get to Wrexham, and get to Brussels faster than to Liverpool. Should I so wish, I could get to Rotterdam a full hour faster than I could get to Glasgow. France, Germany, Italy and Spain are all enjoying their high-speed rail networks, but in the country that invented railways, we are still just talking about it, and that needs to change.

I secured the debate because although the Government are committed to the project—I welcome the fact that it appears in the coalition agreement and the Government parties’ manifestos—I fear that it may be under threat from not just outside but within the ranks of the Government. I am of course talking about the Secretary of State for Wales. I welcome the fact that the official Wales Office business plan states, as one of its aims, that it will:

“Ensure that Welsh interests and needs are reflected in the Government’s improvements to transport infrastructure”.

However, the Secretary of State for Wales opposes High Speed 2 and, as a Minister, she refuses to justify herself. The Wales Office’s annual report, which was published earlier this week, tells us that, over the past year, every one of 41 named day questions to the Wales Office were answered on the day specified, yet the answers to two questions asked by my hon. Friend the Member for Pontypridd (Owen Smith) were over a week late. Strangely enough, they were both to do with the assessment that the Secretary of State has made of benefits that HS2 would bring to Wales. We must assume that that was because she was held up trying to find any research that does not foresee massive economic benefits to Wales from the high-speed line.

[Jessica Morden (Newport East) (Lab)]

I congratulate my hon. Friend on securing this incredibly well-attended debate. Despite the Wales Office’s silence on the issue, research by Professor Stuart Cole at the university of Glamorgan points to real benefits to Wales due to speedier connections and greater capacity. Does my hon. Friend find it strange that the Secretary of State has not referred to that research in any way?

[Susan Elan Jones]

I do find it strange, but not when one considers the Secretary of State’s personal opposition to the project. Professor Cole has made it clear that the project would also bring great benefits through inward investment in Wales.

The Secretary of State said of her opposition:

“This project goes right through my backyard”.

If that is not nimbyism, I do not know what is. It is not even disguised nimbyism; it is self-interest pure and simple. In a debate on the issue in March, the hon. Member for Weaver Vale (Graham Evans) recounted tales of people stating:

“I am not a nimby, I just don’t want a railway line built near my house.”—[Official Report, 31 March 2011; Vol. 526, c. 177WH.]

[Rehman Chishti (Gillingham and Rainham) (Con)]

I am grateful to the hon. Lady for securing the debate. On that point about residents’ concerns, does she accept that lessons have to be learned? My constituency recently had High Speed 1, but then standard services were reduced and High Speed 1 fares went up by 30%. If we want more people to use high-speed rail, it has to be affordable, and we cannot have it at the expense of standard services.

[Susan Elan Jones]

I totally agree. We have to look at all those issues sensibly. However, equally, as a representative of a Welsh constituency—I know that Members from other parts of the United Kingdom feel this too—I am not prepared to see HS2 delayed on the grounds of pure and simple nimbyism. That is quite different from the point raised by the hon. Gentleman.

[Mr Mark Field (Cities of London and Westminster) (Con)]

Does not the hon. Lady have any sympathy for the plight of those Members of Parliament who represent seats on the route? I represent an area where Crossrail is infuriating, angering and frustrating many of my constituents. It has done that for many years and will do so for decades to come. As it happens, I am a keen supporter of Crossrail and am willing to make the case. Perhaps the hon. Lady should be setting out the argument that MPs who are on the line should be making a robust case, particularly about capacity, which I think is one of the big issues. As my hon. Friend the Member for Gillingham and Rainham (Rehman Chishti) was pointing out, if general capacity is reduced, that undermines many of the perceived benefits of such a new scheme.

[Susan Elan Jones]

I have considerable sympathy for that view, but the difference is that the hon. Member for Cities of London and Westminster (Mr Field) does not aspire to be Secretary of State for Wales—

[Chris Ruane (Vale of Clwyd) (Lab)]

Not yet.

[Susan Elan Jones]

Indeed.

There is a conflict here. I understand that people are likely, as they are entitled, to complain about local developments to which they are opposed, but we need our Government to take a broader national view, and Wales certainly needs a Secretary of State who will do better. That is why I am here to make the case for high-speed rail, and specifically the Welsh case, because I fear that it is not being made by the person whose job it is to do so.

The official ministerial answers on the benefits of HS2 for Wales may be missing, but there is plenty of evidence from elsewhere in Europe with which hon. Members can form their own opinion, such as the case of Lille. In the early 1990s, the French Government chose to divert their high-speed TGV line through Lille, as opposed to using a more direct route through Amiens, because of high unemployment and post-industrial decline in that area.

[Nick Smith (Blaenau Gwent) (Lab)]

My hon. Friend says that high-speed rail and rail electrification are particularly important for economic development. Does she agree that it is important that we get that for the lines in the valleys and in other parts of Wales, and particularly for the Cardiff-Ebbw Vale line?

[Susan Elan Jones]

I am in total agreement with my hon. Friend’s point, both for south Wales and for north Wales.

In the case of Lille, the French Government decided that following the slightly less direct route was worth the extra €500 million that it cost because of the massive potential for regeneration and employment that the project would bring to Lille. Professor Stuart Cole of the Wales transport research centre at the university of Glamorgan, whom my hon. Friend the Member for Newport East (Jessica Morden) mentioned earlier, submitted evidence to the inquiry of the Welsh Affairs Committee on inward investment to tell us what happened next. Twenty years later, Lille is ranked as the fourth most accessible European city and has been described as a boom town. As the French Government showed that they were serious about investing in the area, private sector investment followed. A major commercial centre, a retail centre, hotels and offices all sprung up around the terminal. An elite university opened a campus in the town and tourism flourished. The expansion is continuing. A major conference centre is scheduled to be built, along with significant new office accommodation and housing. Public investment in connectivity, accessibility and profile led to private investment, jobs and growth.

[Mr Mark Williams (Ceredigion) (LD)]

We have heard from the south and north of Wales, but in regard to economic development, the hon. Lady must not overlook mid-Wales. In the absence of a direct line from Aberystwyth to London, we would welcome reduced journey times from London to Birmingham, which is part of our journey.

[Susan Elan Jones]

It is no secret that the slow pace of rail journeys to parts of mid-Wales is scarcely believable. I agree totally that the London-Birmingham high-speed link would make a tremendous difference to that, or at least part of a difference. This is our opportunity. I want to see benefits of the kind that the TGV delivered in northern France brought to Wales, as well as to the midlands, northern England and Scotland, through HS2.

Although the planned route for HS2 does not go directly into Wales, that does not matter. Getting the journey time from London to key hubs such as Manchester or Liverpool down to an hour and 10 minutes would be a massive improvement for us. Some tube journeys take longer than that, as I am sure many hon. Members realise. Suddenly, getting business representatives from London to north Wales and back in a day would look easy.

[Guto Bebb (Aberconwy) (Con)]

On that point, I travel down by train from Chester or Runcorn simply because the North Wales Coast Railway line is so poor. How does the hon. Lady think that the economic case for north Wales will be improved by making the journey time to Manchester 1 hour 10 minutes rather than 1 hour 50 minutes, when north Wales will still be three-and-a-half hours away?

[Susan Elan Jones]

There is work to be done in north Wales. We are talking about a link that would speed up the entire journey down here. The examples that I gave earlier show how it is much quicker to travel to parts of Europe than to parts of north Wales, which bears testimony to my argument.

[Albert Owen (Ynys Môn) (Lab)]

At present, many people travel by car to Manchester and hubs. As the hon. Member for Ceredigion (Mr Williams) said, if we get the high-speed rail network, there will be connectivity between Birmingham and various other cities, and north Wales. People from north Wales will travel by train, which will save the environment and save time.

[Susan Elan Jones]

I agree totally with my hon. Friend. When the north Wales main line is electrified, a small number of trains—one or two a day, for example—could be diverted off the main track at Crewe or another convenient point to travel along that track. A passenger would therefore be able to travel from continental Europe to Rhyl, Bangor or, indeed, my hon. Friend’s constituency. Of course, I would also argue for the inclusion of Wrexham directly. Wales, and north Wales in particular, is on the periphery of Europe, but a high-quality transport plan could bring us into real contention for business.

[Owen Smith (Pontypridd) (Lab)]

My hon. Friend is ahead of me because she is talking about the benefits that HS2 will bring to north Wales passengers via Crewe. Does she agree that the Secretary of State for Wales does not need to look as far as Lille for evidence of that? She could merely talk to the Secretary of State for Transport—her colleague in the Cabinet room. In an answer to the hon. Member for South Northamptonshire (Andrea Leadsom), he said that HS2 will bring significant benefits to north Wales rail passengers, with all the obvious economic benefits that my hon. Friend is talking about.

[Susan Elan Jones]

I agree totally with my hon. Friend. Technically, there is nothing to stop such a plan in the long term. High-speed trains in France make some journeys across regular track, such as to Cannes. If the routes of Brussels to Bangor, Rotterdam to Rhyl, or Frankfurt to Flint sound a bit far-fetched, that is evidence of how inaccessible some of our towns are perceived to be.

[Mr Mark Field]

A number of people are worried that the route will lead to an overheated south-east England, which many would regard as undesirable. If travel times from London to Manchester or to Liverpool are 45 or 60 minutes shorter, does not that simply make London even more attractive for people from the north-west, or indeed from north Wales, rather than necessarily bringing great benefits to Wales?

[Susan Elan Jones]

I agree with the hon. Gentleman and I thank him for his thoughtful contributions.

[Esther McVey (Wirral West) (Con)]

Does the hon. Lady agree that high-speed connectivity is vital? At a time when we are talking about rebalancing the economy, particularly for the Merseyside area, this is not just about speed. We want to develop our port and make it the port of the north. We need freight and people connectivity, so high-speed rail is vital.

[Susan Elan Jones]

I totally agree with the hon. Lady. If hon. Members will excuse me, I must try to make a little progress because otherwise they will not be able to make their speeches in the time available.

It is not just Wales that stands to benefit. Ninety business leaders in Yorkshire recently wrote to the Secretary of State for Transport to tell him that the project is vital. The Sheffield city region local enterprise partnership said that 91% of 200 firms surveyed agreed that the benefits of HS2 to the city would be huge. The Northern Way alliance of regional development agencies from the north of England said that it valued the wider economic benefits of north-south high-speed rail at £10 billion, and described the high-speed link as

“an opportunity to create a new economic geography”.

The Scottish Minister for Housing and Transport said:

“the case for high-speed rail…is compelling, robust and clear”.

Manchester council says that high-speed rail will enable local business to compete and will boost tourism, and Stoke-on-Trent council says that it will open up national and international markets. Liverpool supports it and Birmingham supports it. The message from across the UK is loud and clear. We cannot let a small group of people railroad this debate. People welcome major investment in infrastructure to bring about new jobs and new business.

[Stephen Timms (East Ham) (Lab)]

I agree with my hon. Friend about the new economic geography. On Rotterdam to Rhyl, does she agree that if the London stop were Stratford and the trains bypassed St Pancras, the length of the journey from Rotterdam to Rhyl and the other journeys she had mentioned could be significantly reduced, which would have widespread advantages?

[Susan Elan Jones]

I am certainly open to that idea, which I had not previously thought about. In terms of UK-wide economic benefits, HS1 offers some concrete feedback. Despite some criticism, independent reports have put the value of investment attracted by the line at £20 billion, which is 40 times more than original estimates. The operation has not been sold at a loss, whatever the HS2 Tamworth Action Group says. The lease has been sold, and will be re-sold again and again on expiry. Two more sales will bring the scheme into profit, even without taking the massive wider economic benefit into account.

[Mrs Siân C. James (Swansea East) (Lab)]

The economic benefit is well known in rail terms: it is known as the spark effect. As my hon. Friend knows, we in Swansea are fighting hard for electrification of the whole rail system to Swansea. We want that economic development. The spark effect is happening across Europe and we would like it in Britain, please.

[Susan Elan Jones]

My hon. Friend speaks with considerable expertise in this area and I am grateful for her intervention.

Indirectly, HSl enabled the delivery of three major development schemes, in Ebbsfleet, Stratford and King’s Cross, which are all areas in need of regeneration. Some 15,000 homes and 70,000 jobs were created. The project delivered £3.8 billion of transport benefits, which, combined with the operating surplus, offsets the whole project cost.

Independent reports found, in conclusion, the following:

“it is clear that overall the scheme represents high value for money”.

[Karen Lumley (Redditch) (Con)]

Does the hon. Lady agree that the project will provide wider access to Birmingham airport, with a journey time of just 49 minutes? That will ease congestion in the London area and make Birmingham and the west midlands more attractive.

[Susan Elan Jones]

I certainly agree with the hon. Lady. The project will also make her journeys to Wrexham quicker, which I believe is her old home.

[Chris Ruane]

The interventions we have had across the piece seem to show that there is a national consensus for this 21st-century rail project to go ahead. Why does my hon. Friend think there is a delay? Is the reason political?

[Susan Elan Jones]

I would hope not. On HS2, the 2008 Atkins report concluded that a high-speed rail network would deliver more than £60 billion-worth of benefit to the UK economy in its first 60 years. In 2009, the British Chambers of Commerce calculated revenues and benefits to the economy worth £55 billion. The Government’s consultation paper puts the benefits at around £71 billion in revenue and benefits.

[David Mowat (Warrington South) (Con)]

On the subject of benefits and the point about delay, it might be worth putting on the record that the business case for High Speed 2 puts the net benefit ratio of the project at 2.6, which is higher than Crossrail, Thameslink or HS1.

[Susan Elan Jones]

I agree with the hon. Gentleman, but not with the Taxpayers Alliance, which suggests that the business case is unproven. I confess that that is not the only thing I disagree with the Taxpayers Alliance on.

Wendover Action Against Chilterns HS2 Routes claims that passenger demand forecasts have been overestimated. It ignores the fact that, after 10 years of 5% annual rises in passenger numbers, HS2 envisages just 1.4% annual growth. Again, it does not offer its own projected profit figures. The RAC has offered the following gem of a critique:

“the analysis so far has been largely uni-modal and future analysis will need to be multi modal so as to assess HSR against rival and complimentary investments, particularly in the air and road sectors, whilst further work may also be required to analyse the inter-relationships with the classic rail sector and to test the robustness of modelling results”.

Perhaps we can pass that on to the Plain English Campaign, so that it can translate it for the rest of us. Ultimately, it is clear that the experts all agree on one thing: there will be economic benefits and, even if we cannot agree on every penny, we know they will be hefty. Whether someone lives in the Chilterns or not, they cannot escape the economics. If it is done properly, high-speed rail works. Once we accept that, it only remains for us to consider whether those benefits are outweighed by any overriding negatives. As we have heard, the Secretary of State for Wales believes that one such negative is the fact that the line will pass through her backyard. Putting the right hon. Lady’s begonias aside, what are the real facts on environmental impact?

I totally agree that areas of outstanding natural beauty must be protected. Indeed, a new such area is on its way in my constituency. I believe that they must be protected and preserved wherever possible; I do not accept, however, that HS2 will cause unacceptable blight in the Chilterns. In fact, all but 1.2 miles of the route through the Chilterns area of outstanding natural beauty will be in tunnels, and one cannot get much less obtrusive than that. We will not be able to see it—it will be under the ground. Other parts of the route will be hidden in deep cuttings, or run alongside motorways. A lot of work has gone into ensuring that the line will cause minimum disruption. In fact, route changes mean that only 340 properties will be affected by noise, of which 210 are in central London, itself hardly a haven of peace. Just 10 properties will be affected by high noise levels. That does not add up to irreparable damage to the countryside. The fact that it will be possible to see and hear this rail line in the distance does not outweigh the very real economic and social benefits it will bring.

I have one point to add, regarding the residents in Holborn and St Pancras whose homes may be demolished. That may be classed as irreparable damage and I would not want to see that outcome; I hope very much that a solution can be found to avoid that demolition. I would back any amendment to the plan that could avoid the destruction of homes.

[Mr Mark Field]

So, doing that in Labour-held seats is acceptable, but not in Conservative-held seats?

[Chris Ruane]

They are not knocking them down in Tory seats.

[Susan Elan Jones]

It is a shame. The hon. Gentleman should have known that I would have said exactly the same had it been in his seat. I am reluctant to take back my earlier compliments for his interventions.

Having overcome the environmental argument, what about the costs of building during the recession? Let us look at the figures. HS2 will cost £2 billion a year during the building phase, which I believe is roughly the same as Crossrail. Construction will start at roughly the same time as Crossrail finishes, meaning that the overall transport budget will stay quite steady, but HS2 will spread jobs and benefits much more widely than Crossrail. Initial estimates predict the creation of 40,000 jobs. Some of those jobs will be in London and the south-east, but many will be spread along the line. Several thousand will be non-permanent construction jobs, but many will be permanent. At a time when the construction industry is struggling, I, for one, would welcome that.

Even if the budget has to stretch to pay for the build, which I do not believe it will, the figures all show that we can expect a return of £2 for every £1 invested in the project. If we think long term, and we should, that is an attractive proposition. If aliens from Mars turned up and heard about a project set to create 40,000 jobs, to link north and south, and to boost our national profile, they might well guess that the Government had decided to subsidise such a project for the public good. I am sure they would be shocked to hear that it was being opposed, despite being set to earn double the original investment. The cost is not a barrier to HS2; the investment is sound. Only the most blinkered, short-term thinking can conclude anything else—the costs add up.

What about the suitability of the UK for a high-speed line? Detractors say that the UK is too small to benefit from high speed, that our country is densely populated and already well-served by lots of railways. However, the distances between our major cities are very similar to those with successful high-speed rail abroad. Frankfurt and Cologne are 110 miles apart, which is the same distance as London to Birmingham. Tokyo and Osaka are 325 miles apart—roughly the same distance as London to Edinburgh.

While it is true that we already have railways, our lines are full. On capacity, fares are going up and up as demand increases, a point raised earlier by the hon. Member for Gillingham and Rainham (Rehman Chishti). The cost of some season tickets in the south-east rose by almost 13% this year. Anyone who says that HS2 fares will be too high should consider the situation with our existing network. Sir Roy McNulty’s review of fares, published in May, suggested that off-peak fares should rise by 30% “to manage capacity”, as thousands of people pack on to trains with cheaper fares. We are actually having to price people off our trains to prevent them from bursting. That cannot be the right approach. We want to encourage public transport use, as my hon. Friend the Member for Ynys Môn (Albert Owen) said earlier, not suppress it.

We need more trains, and our existing network cannot provide them. For example, management at the west coast main line, which has recently had a major £10 billion upgrade that caused huge disruption to passengers, has announced that it will be at full capacity again within six to 10 years, even if extra carriages are added. It is not possible just to run more trains: there simply is not enough space. Even though there is the demand for more fast, direct trains up the west coast, the local commuter services and freight trains that use the lines do not leave extra space for the extra trains. We need more capacity. Network Rail has acknowledged that, and it spells it out very simply:

“HS2 solves the capacity problem”.

HS2 not only allows the existing network to operate at full capacity during its construction; it is the only option that will release real, significant extra capacity when in operation. Current services would continue to run on the existing lines, but the high-speed routes would no longer be hemmed in by them. Instead, they would have a free run on the new lines. Towns without HS2 stations will benefit as space for more trains is freed up on existing lines, with less crowding and more services. It is a win-win situation.

[Mr Brian Binley (Northampton South) (Con)]

Does the hon. Lady agree that for towns such as Northampton, which are not directly on the route but feed into it at Milton Keynes, the issue of capacity is vital, specifically when we recognise that population will increase by 120,000 by 2026? If HS2 does not happen, we will have serious problems, and I thank her for making that point.

[Susan Elan Jones]

I thank the hon. Gentleman for his thoughtful contribution—many thanks.

Finally, let me deal with the so-called Rail Plan 2, which could apparently solve our capacity problems for a fraction of the price of HS2. That plan contains such major flaws that even its supporters are having to modify it as they go along. I have already heard of Rail Plan 2a, for example, which is supposed to be more “sympathetic”. RP2 basically involves doing almost nothing, maintaining and improving our existing tracks in a hotch-potch manner, and improving capacity a little bit here and a little bit there. Of course it is cheaper—it has not achieved anything that we would not have done as a matter of routine upkeep. Of course, it is quicker as well. It will have to be quick, because rebuilding a line that is still in use as the main line route will cause massive disruption. I wonder whether the cost of that massive disruption has been taken into account in these very low cost estimates for RP2, let alone that the horrible experience of using a line which is half dug up may put a lot of people off rail travel for life.

If we want a top-class railway system, it is not enough just to fiddle around little by little. High-speed rail is the way forward. It has worked in other countries and is backed by all the key figures around the UK. Of course, we can and should improve our existing network as well. I have already said that I hope that the north Wales main line, referred to by the hon. Member for Aberconwy (Guto Bebb), will be electrified soon. However, such a piecemeal investment project will have no wider economic benefits and create no draw for inward investors, and it will create such chaos on the railways while being built that it could make the whole idea of inter-city travel less attractive altogether. If we never begin a long-term project, we will never finish it, either.

[Mark Tami (Alyn and Deeside) (Lab)]

rose—

--- Later in debate ---

[Susan Elan Jones]

I agree. My hon. Friend the Member for Alyn and Deeside wished to intervene.

[Mark Tami]

As my hon. Friend the Member for Vale of Clwyd (Chris Ruane) mentioned, I am not a regular user of the train. There are connection problems. I used the train last week, only to find that I waited for a connection for nearly 40 minutes. That is an issue. It is all very well having high-speed rail, but if the connection time is so out, we will not get the benefit.

[Susan Elan Jones]

I agree with my hon. Friend on that point.

As I was saying, if we never begin a long-term project, we will never finish it, either. Even if HS2 takes many decades to build, the benefits it will bring will make it worth it many times over in the long-run. RP2 may work for a while but, ultimately, it will leave us continually plugging leaks, while the rest of the world races away with new technologies and coherently planned schemes.

In conclusion, we need more capacity, faster journey times, jobs, investment and better access. HS2 can give us all that, and it is heartening to see so much support among hon. Members this morning. I call on the Government to face down the saboteurs and stick to their promises. Only a small number of people oppose the scheme—regrettably, they include the Secretary of State for Wales and the Chilterns—but everyone else backs it, and so do I.

[Several hon. Members]

rose—