A11 (Dualling)

William Bain Excerpts

Tuesday 27th July 2010 Westminster Hall

[Mr William Bain (Glasgow North East) (Lab)]

It is a pleasure to serve under your chairmanship for the first time, Mr Williams. I congratulate the hon. Member for West Suffolk (Matthew Hancock) on securing this important debate, which is of great relevance to securing higher economic growth in East Anglia and the wider east of England area. The fact that I am faced by so many Members on the coalition Benches and have no Members on my own Benches shows just how far my party has to go in trying to win back the trust of people in the east of England, a task that we shall pursue with great diligence in the course of this Parliament.

The hon. Gentleman and the hon. Member for South West Norfolk (Elizabeth Truss) campaigned with great effectiveness and persistence before and after the general election for the dualling of the nine-mile stretch of the A11, between the Five Ways roundabout at Barton Mills and the roundabout at the southern end of the Thetford bypass, and I pay tribute to their efforts. We have followed the hon. Gentleman’s contributions in the Chamber with great interest, particularly those on economic matters. He has quickly demonstrated a zeal for fiscal consolidation, of which his right hon. Friend the Chancellor would undoubtedly be proud. Indeed, given the hon. Gentleman’s background, it would not be surprising to learn that he was the architect of the plan for fiscal consolidation. Today, however, he made a surprising but welcome case for targeted capital investment in transport infrastructure. Who knows what further progress we may make before the end of this Parliament? Perhaps we will find that beneath that only occasionally monetarist exterior there beats the heart of a Keynesian after all, at least with regard to transport investment.

[Elizabeth Truss]

Is it not the case that even Adam Smith, quite a dry economist, suggested that infrastructure spending was important for the viability of businesses? It is hardly a Keynesian case.

[Mr Bain]

The hon. Lady makes an important point, and one to which I will return later in my remarks. I know that hon. Members are keen on establishing the provenance of their arguments through literature reviews—indeed, I have an important article to which I will refer later.

The hon. Member for West Suffolk eloquently argued that investment in roads now can generate higher economic growth in the future—I strongly agree. I pray in aid an important article by Nicholas Crafts in the Oxford Review of Economic Policy last year. He cited the problem of the relative lack of transport investment in roads over the past few decades, for which Governments of all political hues should be held accountable. The important point in his piece—indeed, the nub of his argument—was that public investment in roads provides greater returns in private investment. He concluded that the productivity gains obtained “crowd in” and do not “crowd out” private investment. I hope that Government Members take that argument on board.

I pay tribute to the other contributions to the debate from the hon. Members for South West Norfolk, for Great Yarmouth (Brandon Lewis), who spoke with great insight about the benefits of the A11 dualling for his area, for Waveney (Peter Aldous), for Broadland (Mr Simpson), for Mid Norfolk (George Freeman), for Ipswich (Ben Gummer) and for Norwich South (Simon Wright).

As the hon. Member for West Suffolk mentioned, although investment in completing the dualling could cost the public purse anywhere between £106 million and £147 million, the Highways Agency has estimated that such investment would bring £557 million in benefits to the East Anglian economy and improve safety capacity and journey times along the A11.

The hon. Member for Norwich South referred to the Atkins report commissioned by the East of England Development Agency, Norfolk county council and the Government office for the East of England. It established that benefits could be worth £202 million for commuters and leisure travellers, £355 million for business travellers, including freight and car travellers and an additional 20%—perhaps £136 million—in time savings.

In the “A11 Wider Economic Impacts Study”, Atkins makes a powerful case for the economic benefits that could be brought by the dualling. The report cites increased business efficiency and confidence, and bringing together the communities of Norfolk and Suffolk—tangible benefits that would emerge from the investment.

The section is the last remaining stretch of single carriageway on the M11-A11 route to Norwich, where congestion is a consistent problem, exacerbated at times by agricultural traffic. A public consultation was initiated in 2001, a preferred route was announced in November of that year, a draft order was published in 2008, and a public inquiry commenced in November 2009.

The project has been met generally with favour and approval locally. The Royal Society for the Protection of Birds and Natural England, reportedly opposed to the scheme at first, withdrew its opposition after the Highways Agency agreed to create suitable habitats for nesting stone curlews. On 28 April, as already referred to, my noble Friend Lord Adonis, the then Secretary of State for Transport, on behalf of the Labour Government made a commitment to complete the dualling of the nine-mile section between Thetford and Barton Mills, subject to receipt of the planning report following the public inquiry into the project.

[Ben Gummer]

I am interested in that admission. Given the journal cited earlier by the hon. Gentleman—I am afraid that I missed that issue, but it seems self-evident that investment infrastructure is important, especially roads—why did the Minister make such a declaration on 28 April this year and not on 28 April 1998?

[Mr Bain]

As ever, the timing of my noble Friend Lord Adonis was impeccable. He will have made that decision having weighed up all the factors, in his inimitable style.

Other transport capital investment is contributing to economic recovery in East Anglia. Rail freight contributes £870 million to the UK economy each year, and Network Rail’s decision to upgrade the line between Felixstowe and Nuneaton via Ipswich, Ely and Peterborough will help the rail freight industry in East Anglia in particular, potentially taking 750,000 lorries off the roads in the UK and on to rail by 2030.

I am pleased to see the Under-Secretary of State in his place. During the election campaign there was quite a tough war over the A11 dualling between his right hon. Friend the Minister of State, Department for Transport and his hon. Friend the Under-Secretary of State for Transport, the hon. Member for Lewes (Norman Baker). The coalition agreement makes 12 commitments on transport issues, but none relates to the £6 billion plan for roads investment which the Government inherited from their predecessors.

I hope that the Minister will take the opportunity today to affirm the Government’s support for necessary improvements to our roads network, of which the completion of the A11 dualling is a key part, and to make it clear that the Liberal Democrat pre-election policy of cuts in new roads investment has been repudiated. More widely, can he outline what his Department’s criteria are in its value-for-money analysis of transport capital projects? Can he indicate which criteria, in his view, the completion of the A11 dualling would fulfil?

My broader point, which was referred to by the hon. Member for West Suffolk, is that countries that have attempted a programme of fiscal consolidation remotely resembling that being pursued by the Government have seen transport as an easy target. Canada in the mid-1990s is a case in point, where spending was slashed by 50%. That must not happen in the comprehensive spending review and in the programme of fiscal consolidation.

[Matthew Hancock]

I am grateful that the hon. Gentleman accepts that the Government of whom he was a part failed to invest in infrastructure enough. It is good of him to admit that. Therefore, does he agree that not reducing capital spending in the Budget was the correct decision? Given his citation of the economic literature, does he commend that decision by the Chancellor?

[Mr Bain]

The point made in the Crafts article, and in a number of studies, is that Governments—both Labour and Conservative—over decades have not invested enough in transport. I hope that that is borne in mind in the comprehensive spending review.

Am I content that the Chancellor has not cut capital investment further? Absolutely. We shall see what happens on 20 October, but transport has a strong case for needing additional capital investment, not least in projects such as the completion of Thameslink and high-speed rail, on the benefits of which I have spoken in previous Westminster Hall debates.

I hope that the Minister will show today that he and the Secretary of State are prepared to fight for investment in our roads, buses and trains, and do not simply see their budget as one which is ripe for pruning by the Chancellor. I pay tribute to the contributions made by other hon. Members and hope that the Minister will have good news for the people of Norfolk and Suffolk.