High Speed Rail
Theresa Villiers Excerpts(14 years, 5 months ago)
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The Minister of State, Department for Transport (Mrs Theresa Villiers)
It is a pleasure to serve under your chairmanship, Mr. Betts. I join others in congratulating the hon. Member for Edinburgh North and Leith (Mark Lazarowicz) on securing a debate on this important topic. For many of the reasons that he so articulately set out in opening the debate, the issue is significant for the future of our transport system, our economy and our environment,
I can assure hon. Members that high speed rail plays a core role in the new Government’s vision for the future of travel in the United Kingdom. I am therefore grateful for the strong support that has been displayed across the parties in the debate, and particularly by the new shadow Minister, the hon. Member for Glasgow North East (Mr Bain). That support has been reflected in many speeches this morning, and I welcome the contributions from not only the hon. Member for Edinburgh North and Leith, but from the hon. Member for Leicester South (Sir Peter Soulsby), my hon. Friend the Member for Banbury (Tony Baldry) and the hon. Members for Solihull (Lorely Burt) and for Carmarthen East and Dinefwr (Jonathan Edwards). I shall address a number of the issues that they raised. As well as supporting high speed rail, my hon. Friend the Member for Banbury reflected on some of the issues for local communities that might be affected once a route is chosen. I will come to that later.
The Conservatives championed high speed rail in opposition. We transformed debate on the issue in October 2008, when we pledged to start the long process of building a national network. At the time, the Labour Government had dismissed high speed rail as an option, and their 30-year strategy for the railways contained no place for it. Nevertheless, I very much welcome the change of heart that occurred after our announcement and with the appointment of Lord Adonis. I echo the comments of the hon. Member for Glasgow North East in welcoming and paying tribute to the work that Lord Adonis did on the issue.
The change of heart from the previous Government signalled the emergence of a broader cross-party consensus on the principle that high speed rail is essential for Britain’s transport system. The new Government’s support for high speed rail was clearly and explicitly included in the coalition agreement. Our programme for government includes the creation of a high speed rail network. Our ambition is the creation of a genuinely national high speed network, although we recognise that that will have to be achieved in phases over a number of years. However, in answer to the questions about that national network, let me say that a genuinely national network of course embraces destinations in the east midlands, Scotland and Wales—the areas that have been specifically highlighted this morning.
Let me take this opportunity to emphasise that the Government’s ambitions for high speed rail do not stop at Birmingham. Although the previous Administration had a change of heart on high speed rail, their focus was still just on detailed plans for a route to Birmingham. It is manifestly clear that we will not reap the full benefits of high speed rail unless we go much further than the west midlands, important though a link to the west midlands obviously is. We want to make progress as rapidly as possible towards the creation of a national network that connects to the rest of Europe via the channel tunnel.
In opposition, both coalition partners emphasised the importance of taking high speed rail to Scotland. It is clear in the devolution settlement that the Scottish Government are responsible for rail infrastructure north of the border. Delivering cross-border high speed rail services and a cross-border high speed rail line would therefore obviously require close co-operation and careful joint working between Holyrood and Westminster on a range of issues, including, of course, funding. That is why, in my role in opposition, I visited Scotland for constructive talks with John Swinney on how that co-operation might go forward. There are extensive and close contacts between the Department for Transport and its counterparts in Scotland. The Secretary of State also looks forward to working with his Scottish counterpart in developing a high speed rail strategy that incorporates Scotland.
Issues relating to the timetable were at the heart of the questions from the hon. Member for Edinburgh North and Leith. The Secretary of State is considering the timetable set out by HS2 Ltd. He is also considering questions relating to the integration of Heathrow into the high speed rail network, which I will come to in due course. He will report to Parliament in due course on the timetable and on how things will be taken forward. However, the intention is to go forward with the consultation as promptly as possible, after that statement to Parliament.
The Government intend to present a hybrid Bill during this Parliament. We also intend to start enabling work by 2015. That is a somewhat more aggressive timetable than that set by the previous Government, but we are determined—the hon. Member for Edinburgh North and Leith questioned me on this—to take the process forward promptly. Further work is already under way on lines beyond Birmingham. We will also continue to assess the appropriate delivery vehicles.
Mark Lazarowicz
I thank the Minister for her answers so far, but may I be clear about one point? She said that she envisaged work starting in 2015, but what kind of work does she mean? Such work would be welcome, but 2015 is quite soon, so perhaps she will elucidate.
Mrs Villiers
As I said, the intention is for enabling work to start in 2015. Given that there will be a detailed and expansive consultation process before decisions are made on a route, it would not be appropriate or realistic for me to say exactly what type of work we would intend to start by 2015 and in what locations.
Sir Peter Soulsby
The Minister has talked about a route going beyond Birmingham, and about Scotland. Do the Government remain committed to the Y-shaped link that was part of the previous Government’s proposals?
Mrs Villiers
The previous Government talked about a line north of Birmingham, but had no clear commitment. It was the Conservatives who championed a national network that would bring the benefits of high speed rail to a wider range of areas than was envisaged in the core part of the previous Government’s proposals.
The hon. Gentleman also mentioned fares, and it is important that the high speed rail line should be affordable for ordinary families. The analysis done by the Conservative party in opposition and by HS2 Ltd under the previous Government makes it clear that the line will be affordable and deliverable with a contribution from future fares revenue, even with fares that are reasonable and broadly in line with existing levels on existing services. We can deliver the line without necessarily assuming that the fares will be unreasonable and out of the reach of ordinary families.
Sir Peter Soulsby
I thank the Minister for her response on fares, but she did not respond to my question about the Y-shaped link. I am interested in the link not north but east of Birmingham, serving the east midlands, south Yorkshire and, of course, the north-east.
Mrs Villiers
As I have made clear, our ambition is a national network, and we believe that it is vital to make progress promptly and to ensure that we achieve the benefits of high speed rail as widely as possible. We have also made it clear that merely going to Birmingham is not enough. We need to ensure that other parts of the country share in the benefits of high speed rail. We shall publish details of the timetable in due course.
Greg Mulholland
I welcome the Minister to her new job. She is aware that I have been heavily involved in the lobbying campaign for a direct high speed link to Yorkshire, working with you, Mr Betts, and with the hon. Member for Shipley (Philip Davies), in a cross-party campaign with the Yorkshire Post—its “Fast Track to Yorkshire” campaign. The Y shape is not the only way to create a direct link to Yorkshire and the important cities of Sheffield and Leeds, which are the economic hubs of their areas. The High Speed North proposal merits further consideration. May we be clear, and have a commitment that the Government will, when the relevant phase happens, create a direct link to Yorkshire—not a link via Manchester, which does not make sense?
Mrs Villiers
I have made it clear that the ambition is to create a national network, and it is of course vital that the north of England, Manchester and Yorkshire should be included in that network. In due course, decisions will be taken about the exact route to be selected. However, as I have emphasised, there is a long process to be undertaken before final decisions are made on the route for new high speed rail lines.
The case for high speed rail is undeniable. It has the potential to make a huge contribution to the long-term prosperity of the country and the efficiency of its transport system, and it can play a crucial role in achieving the goal of a lower-carbon economy. In the next 20 to 30 years, key inter-urban routes are likely to become increasingly congested, with negative consequences for our economy and quality of life. High speed rail could provide a massive uplift in capacity, as well as dramatically reduced journey times.
We have been discussing the areas to be served directly by high speed rail, but we must not lose sight of the fact that a high speed network also relieves pressure and overcrowding on existing railways. It allows more space for commuting and freight services, so it produces significant benefits for passengers and the economy even in areas that are not directly served by a line or station. It will create huge benefits in growth, regeneration and jobs, which will be felt far more widely than in the destinations directly served by new lines and services. I believe that it will provide valuable help in addressing long-standing prosperity differences between the south-east and the rest of the country, and thus create a more stable and balanced economy.
To return to some of the issues raised by the hon. Member for Leicester South, of course it is vital, in parallel with taking high speed rail forward, to continue a programme of work on upgrading and improving the existing rail network.
Sir Peter Soulsby
On that point, I would be very grateful if the Minister gave way again.
Mrs Villiers
I would rather make a little progress. I have been very generous in giving way, so I will proceed with my remarks for a moment.
We all acknowledge that there is a downside to the proposals—the impact on the environment of the localities through which new lines could go. As my hon. Friend the Member for Banbury explained, hon. Members have understandable concerns about the potential impact of high speed rail on their constituents. The Government of course recognise the gravity of those concerns. There will be a detailed and inclusive process before final decisions are made about our approach to high speed rail overall, and the route it should follow. I am happy to engage with colleagues and hon. Members during the process. It goes without saying that reducing and mitigating the local environmental impact of high speed rail will always be a high priority for the Government in advancing the project. It will inform our decisions on the selection of the route.
I am happy to take on board my hon. Friend’s ideas on benefiting the communities that may be subject to the environmental impact of high speed rail lines. Ideas are already under discussion about the possibility of burying power lines, and the new Government’s commitment to high speed rail has already brought about a benefit, because it has enabled us to say with confidence that we strongly oppose a third runway at Heathrow. The fact that it will not go ahead provides significant benefits for some communities that may be affected by high speed rail, because there will not be the massive uplift in aircraft noise to which many of them might have been subjected had the election gone a different way and if a Labour Government had been elected and proceeded with their plans. As to existing transport corridors, in assessing the route, the potential benefits of their use will be fully considered. However, that approach is not a panacea. It cannot provide the answer in all cases, but it is worth considering.
We made it plain before the election that we reserved our position on the route that HS2 has recommended. The process of formal consultation on the hybrid Bill will provide extensive opportunities for people to make their voice heard and have their point of view properly and fairly considered before a route is finalised. We also recognise that concerns in that respect are not confined to fears about the future. In some places, the impact is being felt today in the instability of local property markets.
A key goal for the new Government is to press ahead expeditiously, taking on board the continuing consultation, with the finalising of arrangements for an exceptional hardship scheme, so that we can swiftly and equitably give assistance to those who most need it. The consultation is due to end in a week, and we shall look with great care at the respondents’ suggestions in deciding how to proceed.
As part of the work that we are doing to reconsider and review the HS2 proposals on the route, we need to find the right option for connecting Heathrow to the new network. As we made clear in opposition, we believe that it is vital to integrate the country’s only major long-haul hub airport to the high-speed rail network that we propose to build. Lord Mawhinney was asked by the previous Government to assess the alternatives. His review was established against the background of Labour’s policy of supporting a third runway at Heathrow.
In answer to the question asked by the hon. Member for Glasgow North East, one of the first acts of the new Secretary of State was to agree with Lord Mawhinney an amendment to his remit, to reflect the approach of the coalition. The new Government strongly oppose a new runway at Heathrow, as the Prime Minister confirmed and reiterated in one of his first actions on taking office. Heathrow needs to be better, not bigger. A key part of our programme for improving it is to integrate the airport into the proposed new high speed rail network. That would improve public transport links to the airport, and help to relieve the problems with air quality and congestion in the area by encouraging people to switch from road to rail when travelling to Heathrow.
In response to questions on the subject, we are obviously carefully considering whether high speed rail could be integrated with Crossrail. As a number of colleagues said, integrating Heathrow should also facilitate a major shift from air to rail. Experience in Europe shows that high speed rail provides an attractive alternative to short-haul flights. For example, Air France has completely stopped flights between Paris and Brussels, choosing instead to charter carriages on the TGV rail link.
Maximising the scope for switching from air to rail is an important goal in environmental terms, as high speed trains emit significantly less carbon than aviation. Indeed, the gap between the train and the plane is likely to widen as we proceed with the vital task of cleaning up our electricity generation sources. A further benefit of the air-to-rail switch would be to free up space at Heathrow by providing an alternative to the thousands of short-haul flights going in and out of the airport. That is how we plan to relieve capacity pressure.
We believe also that it is essential to have a direct link between the new domestic line and existing international services on HS1, and we have asked HS2 Ltd urgently to assess the best way to deliver that. It would be a mistake to consider rail only in relation to domestic aviation when it is clearly a viable alternative for travelling to a number of important near European destinations such as Brussels, Paris, Amsterdam and Rotterdam.
In conclusion—
Mrs Villiers
I am sorry, but I am going to conclude. There is a huge task ahead of us as we contemplate delivering an infrastructure project as big as any since the 19th century, when the Victorians revolutionised our economy and our society with the nation’s first railway network. It is worth remembering that Britain’s first, and so far only, 68 miles of high-speed track owed much to the unlikely combination of John Prescott and Michael Heseltine. As we press forward with realising this great ambition, I hope that we can continue to count on cross-party support.
Mr Clive Betts (in the Chair)
Order. The Minister is indicating that she will not give way.
Mrs Villiers
I have no doubt that there will be difficult times ahead, not least in relation to decisions about the route and how we mitigate and reduce its impact on surrounding communities and the landscape. However, I firmly believe that future generations will thank us for displaying determination and persistence in delivering this crucial upgrade to our transport system. We need to inject some of the long-term thinking that transport policy has so often lacked in the past. The new Government are determined to rise to that challenge and deliver the high speed vision for Britain’s rail network—one that could have a transformative impact on our transport system, our economy and our quality of life.
Crossrail
Theresa Villiers Excerpts(14 years, 5 months ago)
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The Minister of State, Department for Transport (Mrs Theresa Villiers)
I congratulate the right hon. Member for Greenwich and Woolwich (Mr Raynsford) on securing a debate on this very important topic. I first became a supporter of Crossrail around 10 years ago in my former role as one of London’s Members of the European Parliament, but my involvement has been brief in comparison with the right hon. Gentleman’s long track record. I am sure that everyone will join me in paying tribute this evening to his long and distinguished record of campaigning for Crossrail in general and for Woolwich station in particular.
It is a great honour for me to address the House from the Government Dispatch Box for the very first time. I also count it an honour that my debut here today gives me the opportunity to focus on a project that is so important not just for south-east London but for the capital as a whole, and, as has already been pointed out, for the whole of the UK economy. I reiterate, and warmly welcome, the right hon. Gentleman’s statement on the benefits of Crossrail, which he so eloquently set out this evening.
Crossrail received support from both the coalition partners before the election. That support has been carried through to the formal coalition agreement setting out our programme for government, and the new Secretary of State has made it clear that we are committed to Crossrail. Crossrail is under way: it is happening, it is being built, spades are in the ground, and no decisions have been taken to change the scope of the project.
Our challenge is to deliver an affordable world-class railway. I can assure the right hon. Gentleman that the Department for Transport is working hand in hand with Transport for London, the Mayor and the leaders of the Crossrail project to secure that result. That is why Crossrail Ltd, the company tasked with delivering the project under the leadership of Terry Morgan and Rob Holden, is undertaking the full range of work to ensure that the scheme remains affordable, on budget and on time.
On the right hon. Gentleman’s question about the timetable, I am sure that he would not expect me to take the pressure off those delivering the project; it is my job to hold their feet to the fire and ensure that they deliver on time. It is vital to ensure that each element offers value for money. Indeed, hon. Members familiar with basic project management techniques, as I well know the right hon. Gentleman will be, will appreciate that this work is essential good practice for all construction schemes—and Crossrail is no exception.
I can assure the House that real progress is being made on Crossrail. There are already around 2,000 people working on the project. Last month saw the first anniversary of the commencement of construction work on the Canary Wharf station, which is now progressing ahead of schedule. Enabling work, as I think we all know, is very visible at numerous sites around London, including at Tottenham Court Road, Paddington, Liverpool Street and Bond Street stations. Further work is about to start on the ticket hall at Farringdon. Much of the land needed for construction has already been purchased. Less visible—but, I say to the House, no less important—are the efforts Crossrail Ltd is making to develop detailed designs and plans for different parts of the project. Work is also under way on how services will be operated and how best to integrate them with the rest of the capital’s transport network.
In these difficult times it is more important than ever to ensure that every element of the scheme is tested and retested for value for money. To put it simply, we owe it to all those funding the project, to the business contributors and taxpayers of today and to the fare payers of tomorrow to do all we can to keep this project affordable and to deliver the best value for money. Working closely with the Mayor and the Crossrail team, it is the Government’s duty to ensure that every pound invested is well spent and delivers maximum value.
Mr Mark Field
I entirely endorse what the Minister has said about the need to secure maximum value for money—we would all agree with that—but has not one of Crossrail’s difficulties been caused by the publication of headlines referring to £15.9 or £16 billion, when in reality the central Government element of the expenditure has been considerably less than that? Earlier in her speech the Minister talked about spades in the ground, but as she will recognise, it is rather more than that. Over £2.5 billion has been spent on compulsory purchase and on works already undertaken. Does she agree that, although this does not detract from her central argument about the need to ensure that there is good value for money in the future, we are, in a sense, beyond the point of no return?
Mrs Villiers
My hon. Friend has made a strong point. We need to concentrate on the work that is going on, rather than on the speculation and scare stories that have appeared in parts of the London media.
The work under way at Canary Wharf station already provides a clear example of innovative engineering techniques that have offered significant savings without compromising delivery. We need to learn from that example when delivering other key elements of Crossrail. I know that Crossrail Ltd is committed to the highest standards of procurement practice to bear down on costs and ensure that the project remains affordable, and that must continue to be a key goal for the Crossrail team as progress is made towards letting contracts later in the year.
Jim Fitzpatrick
I welcome the Minister to her new position, and congratulate her on her appointment. Some of us expected to see her as Secretary of State—but hey, she has plenty of time, and I am sure she will get there in due course.
The Minister referred to the building of the station at Canary Wharf. My understanding is that Canary Wharf undertook the funding of that development. This reinforces the point made by the hon. Member for Cities of London and Westminster (Mr Field). The private sector has put its money where its mouth is. The question that my right hon. Friend the Member for Greenwich and Woolwich (Mr Raynsford) and other Labour Members have been asking is whether the Government are as committed as the private sector.
Mrs Villiers
As I have said, we support Crossrail and are committed to it. The project is going ahead. It is vital to ensure that all assumptions about the risk that the scheme involves are tested rigorously by Crossrail Ltd to ensure that those risks are properly identified and reflected in cost estimates, and so that sensible steps can be taken to reduce them. The latest innovative value engineering techniques have the potential to reduce costs significantly, and Crossrail Ltd has already been able to identify 18% savings in overall indirect costs through measures such as reducing administrative and staff costs and renegotiating IT contracts.
Stephen Pound
I am grateful to the hon. Lady for giving way. She has been extremely generous, and I echo others in welcoming her to her post. I think that the least we could do is consider opening a new station adjacent to Charing Cross, perhaps in Villiers street.
Does the hon. Lady agree with one of the central points made by my right hon. Friend the Member for Greenwich and Woolwich (Mr Raynsford)—that Crossrail is not just about London but about the south-east, and the national economy? Does she agree that it is a driver for economic growth and expansion?
Mrs Villiers
I entirely agree that Crossrail will be a hugely important driver for economic prosperity, not just in the capital but throughout the United Kingdom economy.
Energetic work is continuing to find more efficiencies, and I am sure all Members will accept that the principles I have described are basic elements of good project management and simple good housekeeping.
Let me now turn to the important issues raised by the right hon. Member for Greenwich and Woolwich about Woolwich station. I am well aware—as, I am sure, are all who have followed the twists and turns of Crossrail’s long history—of the pivotal role that he has played. He fought a long and successful campaign to add a station at Woolwich to the Crossrail Act 2008. As he said, such a station could deliver significant regeneration benefits to his constituents and to south-east London more widely.
Let me make absolutely clear that I recognise the importance and magnitude of those benefits, that I hope we can find a solution, and that the Department and I are working hard with Transport for London in trying to find a way forward. However, a clear agreement was reached that the costs of building and fitting out the station would be borne by the private sector. That agreement limited the taxpayer contribution to the money saved because a station at Woolwich would reduce costs, given that some of the work originally included in the overall project would no longer be necessary.
In short, the plans to include a station at Woolwich have always depended on contributions from the developers who stand to benefit most from it. That was the case when the last Government took the decision to add the station to the Crossrail Act, and it remains the case under the new Government. It is abundantly clear that the debt crisis left by Labour has placed intense pressure on the public finances, so we cannot default to a position where a shortfall in the promised private sector funding for the station simply pushes up the costs for the taxpayer.
Mr Raynsford
While I understand entirely the basis on which the agreement was reached in 2008, does the hon. Lady recognise that what has happened subsequently in the housing market has inevitably impacted on Berkeley Homes, the developer, whose contribution is critical to delivering this? While not asking for public contributions, I did specifically encourage flexibility on the part of the Government, to make it possible to reach an agreement with Berkeley Homes that is affordable for the company. The Secretary of State agreed in his letter to me that that was the Government’s objective. Will the hon. Lady tonight confirm that they will try to get an agreement on that basis?
Mrs Villiers
I want to set this out very clearly. The private sector contribution was pivotal to the station getting the go-ahead when the decision was made to add it to the Act, and it remains so. The Government cannot offer additional taxpayers’ money over and above what has been agreed within the current funding programme to replace the shortfall in the private sector contribution that Berkeley Homes promised to provide. However, we can seek flexibility in other areas, as the Secretary of State outlined in his letter.
Both the Department for Transport and Transport for London stand ready to help broker an alternative solution among interested parties to try to address the funding problems. Both the sponsoring bodies have been in extensive discussions with Berkeley over the past year, to seek a way to enable the company to honour its commitments. They have written to me only today with more constructive ideas. Naturally, one of the most significant of those interested parties is the London borough of Greenwich. In this regard, it is important to assess whether development opportunities around the station and the alternative funding that they might generate have been fully explored.
I know that Greenwich council is actively engaged in the issues that we have discussed this evening. It is now important for all of us who care about Crossrail to assess thoroughly the possible alternative funding sources that could be available between the interested parties if Berkeley Homes does not step up to the plate and deliver what it promised. Therefore, while I cannot promise additional funding from the Department and the taxpayer, we do stand ready to try to help the interested parties find a solution to enable Woolwich station to go ahead. The right hon. Gentleman can have my absolute assurance on that.
I would like to mention briefly some of the wider issues that the right hon. Gentleman raised about transport in his constituency. He warmly welcomed a number of the recent improvements, and it is worth noting that several important programmes in recent years have benefited his constituency, such as the refurbishment of the East London line as part of the London overground network, new interchanges with the tube and bus networks, and the extension of the docklands light railway, which the right hon. Gentleman described with such eloquence.
I thank all Members who have taken part in the debate, especially the right hon. Gentleman. I believe that it has provided a valuable opportunity to consider important issues around the Crossrail project in general and its impact on his constituency in south-east London in particular. After long years of waiting, the commencement of work on Crossrail was warmly welcomed, particularly within the business community, where Crossrail has always enjoyed strong support. The CBI recently made it clear to the Secretary of State that it is pleased to see progress continuing under the new Government.
I should like to take this opportunity, on behalf of the Government, to thank the Canary Wharf Group, BAA plc, the Corporation of London and its members for the considerable financial contributions that they are making. I am sure that we would all like to express the same gratitude to the other businesses in the capital whose rate supplements are providing a hugely important element of the funding package.
This project has the potential to deliver significant economic, social and environmental benefits for the capital and for the country. Those benefits will be felt well beyond the areas directly served by the new line and its stations. The challenge facing all of us who are interested in Crossrail is to ensure that costs are kept down. That means engaging in an active, energetic pursuit of best value for money procurement processes, urgently seeking ways—