(5 years, 3 months ago)
Grand CommitteeMy noble friend Lord Berkeley has spoken about the purpose of his amendment, calling for an independent peer review of the section of the HS2 project covered by the Bill; namely, the connection to phase 1 at Fradley in the West Midlands and to the west coast main line just outside Crewe in Cheshire.
The most recent review—and it is recent—was the Oakervee review, which started off with my noble friend Lord Berkeley playing a prominent role, which then appeared to be downgraded as time went on, until at the end he seemed to be treated as a somewhat peripheral figure. Presumably this was not unrelated to my noble friend’s views about the review and its conclusions.
My Amendment 8 requires the Secretary of State to publish a cost-benefit analysis of HS2 within three months of the Bill becoming an Act, and then to
“publish a revised assessment in each subsequent twelve month period.”
I imagine that the Minister will oppose that but, if so, I hope she will be able to tell me that that is because this will be covered in the new six-monthly reports to Parliament. Obviously, I await her response.
However, I want to raise some points about costs. Are the committed costs for phase 1 now some £10 billion, with that figure being about a quarter of the Government’s estimated total cost of phase 1? If that is an accurate or reasonably accurate figure, would the Government expect committed costs to have already reached some 25% of the total cost of the phase before the permanent works have really got under way? What is the Government’s estimated cost of phase 2a and how much has already been spent and committed? What is now the expected completion date of phase 2a? Are the Government confident that their latest cost-benefit ratio figure for HS2 could never worsen as the project continues—and, one fears, costs rise—to the point where there would be a serious question about the case for HS2? An assurance on that point would be helpful. Is it the Government’s unequivocal position that once the Bill becomes an Act, phase 2a will proceed—no ifs, no buts?
Our position is, and has always been, one of support for HS2. It was no wonder that my noble friend Lord Adonis sought unambiguous assurances on Monday, which he did not appear to get, of the Government’s continuing commitment to complete the eastern leg of HS2 in full, to plan, from Birmingham through the east Midlands to Leeds. It was a Labour Government who got this project off the ground, thanks in particular to the drive and determination shown by my noble friend. However, there needs to be a proper grip on costs once specific figures for expected costs have been announced, which also means that considerable hard evidence-backed thought needs to be given to what, realistically, those expected costs are likely to be, and the same should apply as far as the benefits are concerned.
I suspect that the Government recognise that. In a letter to me of 16 October the Minister said:
“The Government have strengthened the arrangements for governance and accountability for the HS2 project. There is now a dedicated Minister, a cross-government ministerial group and a six-monthly report to Parliament.”
Is the appointment of a dedicated Minister an admission that there has been insufficient ministerial involvement and oversight of the HS2 project and its costs by the Department for Transport for a significant part of the past 10 years? That is what it sounds like. If so, why did Ministers allow that to happen and to drag on for so long? Does the creation of a cross-governmental ministerial group mean an acceptance that there will have been no proper co-ordinated cross-government policy-making at ministerial level and oversight on HS2, including its costs, for a significant part of the past 10 years? Once again, that is what it sounds like. Again, I ask: if so, why did Ministers allow that to happen and to drag on for so long?
I would like to know why the Government think that these new arrangements will strengthen governance and accountability. In what way is governance being strengthened? What particular deficiency in the previous governance arrangements will be plugged by these new arrangements? What positive impact on the HS2 project do the Government expect to result from these new arrangements? In what way do the Government believe that accountability will be strengthened by these new arrangements? Who and what will become more accountable and to whom? What benefits do the Government expect to arise from this strengthening of accountability for the HS2 project? What will be the impact of the strengthened arrangements for governance and accountability on the costs of HS2? If it is expected to be positive—and I assume it is—why will these new arrangements involving Ministers enable costs to be better controlled than they have been under the existing arrangements?
The first of the six-monthly reports to Parliament has reported a further £800 million increase in costs over six months. Are the Government satisfied that the reasons given in the report for the increase in costs could not have been identified much earlier with more extensive preparatory work? If the Government’s answer is that they are satisfied that that is the case, that seems close to an admission that they really do not know what the final cost of HS2 will be since, presumably, further major unexpected developments or problems could continue to arise all the time. If that is the case, we can only hope that such developments and other potential issues affecting costs do not end up exceeding the contingency provision that has been made because, as we have seen and know, opponents of this project are reinvigorated every time there is an announcement of a further non-budgeted increase in costs. That is why controlling costs is important.
I hope that the Government will be able to give some clear answers to the questions I have asked and will explain why and what they believe the new arrangements referred to in the letter of 16 October will deliver in respect of strengthened governance and accountability and much better control over costs of a project we continue to support.
My Lords, when I saw the first group for this second day in Committee I thought, “This is going to be Second Reading territory” and, lo and behold, it was the case. I thank all noble Lords for their contributions, which went slightly wide of the amendments in the group, which are essentially about reporting, not about whether or not HS2 should go ahead, although we had a little run around that track as well. I note that the last group on the Marshalled List today is about party walls, and I find that a very exciting prospect and very much hope that we will get there.
As I outlined in my previous responses about the Government’s recent changes to transparency and accountability, we are putting these at the heart of everything we are doing on HS2 because we believe that enhanced reporting measures and ministerial oversight will help. That is not to say that there was a significant deficiency previously, as was suggested by the noble Lord, Lord Rosser, but that with all these things good governance is very hard to achieve and incremental improvements to governance structures should be made when they are deemed appropriate.
On Amendment 6, about another report, I think I share the feeling of some noble Lords who have spoken: “Not another one.” There have been several reports on HS2. I believe it is now time to get on and get it built without having another report. Most recently we had the report from Doug Oakervee and his panel and the recommendations therein. The noble Lord, Lord Adonis, mentioned some of the people involved in that report, and I think we all agree that they are people of very high calibre. Indeed, they include the noble Lord, Lord Berkeley. He was on that panel and, as was and is his right, he published his own dissenting report, which of course the Government read and took note of. Is it time now to have yet another report on HS2? I believe that is not the right thing for us to do. We should be looking at the conclusions of the last report, which was written only recently, and putting them into practice. That is why we have Andrew Stephenson as the Minister for HS2 and why we have put in enhanced reporting requirements to Parliament.
The noble Lord, Lord Liddle, mentioned the HS2 board. It is already a strong board, but it has recently been enhanced by representatives from the Treasury and the Department for Transport. That is to make sure that HS2 remains absolutely focused on our priorities and the interests of the British taxpayer. We also have the integrated rail plan, of which the noble Lord, Lord Adonis, is such a fan. That plan is in development and will make recommendations on how best to deliver high-speed rail in the north.
Therefore, the Government do not agree that we need a further report or review—call it what you will— into HS2 at this time. There will be a significant amount of scrutiny to come in any event, given the existing arrangements.
On the amendment tabled by the noble Lord, Lord Rosser, as I have explained, a new reporting regime has just been put in place that commits the Government to report every six months. The first one was published last month and updated the House on costs and schedule.
I will sidetrack slightly, if I may, on the issue of costs and schedule because I am doing a lot of work around this as there are quite a lot of major projects in my portfolio. In this country, we have a slight issue that we expect to know exactly what the cost and schedule will be on day one. That is not even day one of the build. We seem to want to know what they are going to be on day one when someone has only just thought of the project. That is absolutely impossible with these sorts of large engineering projects.
Sorry: I was not quite sure who I was supposed to email under this complicated regime. I emailed someone, but clearly the wrong person.
Perhaps I could ask the Minister a question. She gave she gave a compelling response as to why we should not have a review. She was less convincing in response to my noble friend Lord Rosser about cost/benefits, because costs and benefits change over time, which was part of the point my noble friend was making. The noble Lord, Lord Framlingham, was so concerned that we should pay attention to cost/benefits; can the Minister confirm that when it comes to the next review of cost/benefits, it is very important that the costs of upgrading the three principal lines running north from London—the west coast main line, the Midlands main line and the east coast main line—will be set against the costs if HS2 does not proceed? All the estimates made of those costs are that they are huge and should not be discounted in any future cost/benefit analysis.
I thank the noble Lord for that intervention, but what he notes are the counterfactual opportunity costs of not having to do those upgrades. I am not sure how they would factor into a standard cost/benefit analysis, but it is certainly the case, as he pointed out, that they would be fairly costly and that HS2 brings not only speed but capacity.
My Lords, I am grateful to all noble Lords who have spoken to this group of amendments, and I will try to be as quick as I can, because I know we have a lot to get through today. The comments by the noble Lord, Lord Liddle, and the noble Baroness, Lady Randerson, about the need to have an effective HS2 board are absolutely right; that may well be one solution. As the Minister said, things are improving—we must see how it goes, but it is a good start.
It was interesting that my noble friends Lord Snape and Lord Adonis talked about having too many reports on railways. They are quite right but, as they both said, the Minister is undertaking one at the moment on the east side of phase 2B. That follows the Oakervee recommendation; paragraph 3.7 says that the Government should
“establish a further study to be completed by summer 2020”—
well, it is a bit late—
“to develop an integrated railway plan embracing 2B alongside an integrated railway investment programme for the Midlands and the North”.
That is a really good idea, but now to expect to have one enormous hybrid Bill covering the whole lot, as my noble friend Lord Adonis is suggesting, is not really sensible. It would be double the size of the phase 1 Bill, and that took long enough anyway.
I also respond to my noble friend Lord Snape—or perhaps it was my noble friend Lord Adonis—about the people on the Oakervee review. It is worth reminding ourselves that we had only two months to do this, and the terms of reference were slightly unusual for such a study and did not include anything about the environment —we added something, probably at my suggestion. That was one reason for suggesting that another review, done independently, might be a good idea to cover those matters. I will not go into the likely or actual opinions of the members of the review panel, because, as a result of their diaries, they were unable to spend a great deal of time on it, although they contributed a lot. Anyway, we are where we are, and the Oakervee review got published. There is always an issue with independence. A couple of people who I suggested should join or provide evidence to the review said, “If we do that, we might get blacklisted by the Department for Transport for future studies”. I will not name names, but that was a fear that people had.
It is all over now, and we have had a good discussion. Of course, I will not press the amendment and I look forward to continuing discussion on reports and information, cost/benefits and the environment. I beg leave to withdraw the amendment.
My Lords, non-disclosure agreements, or NDAs, are entered into voluntarily with the consent of both parties. In the case of the HS2 programme, NDAs are used for good reason and in the public interest. For example, NDAs may allow HS2 to have open and frank conversations with stakeholders, including local authorities and businesses, on a range of plans and proposals—these are not firm schemes but plans and proposals; they are things that may come to pass or may not. By doing so, it has better access to the information it needs to inform the proposals then put forward. If all possible developments are public at all times, the alarm and concern created in local communities would be simply extraordinary.
NDAs provide huge value to the taxpayer and local communities by reducing generalised blight that would happen otherwise. HS2 entered into agreements with local authorities as part of the very early stages of exploring the different route options. This protected swathes of the country from suggestions of new infrastructure. What would have happened had those suggestions come out? Property values would have plummeted, yet most of those suggestions were just that—suggestions—and they would never have come to fruition.
The private nature of such conversations is helpful. It reduces worry and uncertainty for those affected by the scheme. The use of NDAs also protects the public’s private and personal data. Sometimes, it is necessary to share information between organisations. For example, there might be concerns about somebody’s welfare. HS2 has a duty of care but also needs to share such data in compliance with the law. NDAs allow this to happen. Protecting personally sensitive and project-related data in this way allows the project to avoid affecting property values unduly and to protect individuals’ rights. I am confident that the use of NDAs by HS2 is in the public interest. It is not a way to avoid transparency; it is a way to ensure that HS2 is able fully to scope the costs of the various proposals in a confidential manner and to ensure that whatever proposals are eventually put on the table are those most likely to succeed, while minimising the alarm caused in areas which, frankly, do not need to be alarmed because they were not in the end chosen.
The need for an independent assessor to testify to the public interest has been discussed extensively and considered by the Secretary of State for Transport during the passage of this Bill, including whether it might be pertinent to appoint further observers or implement a new complaints procedure. The conclusion has been that it is right that those who wish to do so should have the opportunity—they do not have to do it—to enter into an NDA with HS2 Ltd. In this sense, people who are affected by the scheme should be allowed to protect themselves and their private conversations with HS2 without concerns that their data will be shared with a third party. Just because these private agreements are just that, private, does not make them invalid or an illegitimate form of protection for the parties—it does not make them shady, as has been the impression I have been given by the speeches of some noble Lords. They are voluntary agreements that can be entered into for various reasons.
If an independent assessor were appointed to scrutinise such agreements, they would be breaching the privacy of those agreements. The appointment of an assessor would effectively prevent the sharing of information on a confidential basis. This would cause delay, which noble Lords tend not to like. It would increase uncertainty —again, a bad thing—and costs for those affected by the project and the cost of the project itself, which is ultimately paid for by the taxpayer.
I want briefly to mention that there are established complaints procedures for members of the public who wish to have their concerns considered through independent scrutiny. As noble Lords are aware from day 1 of Committee, there is Sir Mark Worthington, the independent construction complaints commissioner. There is also the residents’ commissioner, Deborah Fazan, who is in place to hold HS2 to account for the commitments in the residents’ charter. She produces periodic reports on HS2 performance against those commitments. Within HS2, there is an established whistleblowing hotline, called Speak Out. Speak Out provides a route for staff, contractors and members of the public to raise concerns about any potential misuse of taxpayers’ funds.
The noble Baroness, Lady Kramer, mentioned that she would like a meeting. I would very much appreciate a meeting with her, although I might perhaps offer my colleague, Minister Stephenson, as the HS2 Minister. He would be better able to hear her concerns, because we need to get below the whole “Ooh, it’s a bit shady; 342—isn’t that too many?” I do not know: is it too many or is it too few? The whole point is: are the non-disclosure agreements the right ones, and are they reached voluntarily and for the right reasons?
I would like the noble Baroness, Lady Kramer, perhaps to have a meeting with my colleague, the HS2 Minister, to talk through some of the evidence and some of the things that may have happened in the past, which we have been able to remove, because of the steps that have been taken, and to discuss any ideas that she has for steps that we can take in future to ensure the requisite level of transparency—but also to protect the taxpayer and ensure that confidential conversations can take place when appropriate.
On the basis of my intervention, I hope that the noble Lord feels able to withdraw his amendment.
I have received requests to speak after the Minister from the noble Lord, Lord Adonis, and the noble Baroness, Lady Kramer.
The Minister’s response has been compelling. She is right to point up the importance of HS2 Ltd being able to discuss with local authorities confidentially different route options, treatment of works, and so on. That is completely correct. Of course, if that was not possible, HS2 probably would not be able to have some of those conversations, because the issues raised would be too sensitive. Therefore, I do not think that the case for this amendment has been made even in principle.
I note that the noble Baroness, Lady Kramer, is going to come in after me. If she is going to try to persuade the Committee that there should be some more different and onerous process for HS2 Ltd in respect of non-disclosure agreements, she will have to be franker with the Committee about that. I do not think that we should have general statements made that would lead to substantive changes in a non-disclosure agreement that could impede the work of HS2 Ltd, unless we are given instances that we find compelling to justify that.
I do not think I have anything further to say to the noble Lord, Lord Adonis. I too would very much appreciate hearing from the noble Baroness, Lady Kramer.
Thank you. I would very much like to take up the Minister’s offer of a meeting with the HS2 Minister, Mr Stephenson. That would be extremely helpful. I hope she might have the opportunity to spend a little bit of time looking at some of the cases. I want to challenge the myth that signing a non-disclosure agreement is essentially voluntary. I think that she will find that it is just standard practice, or a meeting is not offered.
The Minister will also recognise that the non-disclosure agreement then covers everything contained within the meeting. As I say, there may be nuggets that genuinely should remain confidential, but there is a great deal of information that should be out in the public arena. It is a mindset, in a sense, for how organisations conduct themselves—whether it is transparency around information not disclosed on an exceptional basis, when there has been careful thought about whether or not that information should be disclosed, or whether the presumption is that everything will be kept behind the closed kimono and information will made available only on an absolutely must or need-to basis. We need some rethinking on this, because that has not served us well.
The Minister will know from her own experience of looking at infrastructure projects that they come up with shocks. We are probably both very aware of Crossrail, which appeared to be completely on track almost until the very final moments, when we were all expecting the announcement of its opening, when we discovered that it was several years behind.
This issue has to be tackled. The issue of individual whistleblowers is one that I would very much like to take up with Ministers, because a salutary conversation between Ministers and senior management at HS2 could make very significant improvements in that arena.
Well, okay, I thank the noble Baroness for her further intervention. I am not wholly the wiser as to what she is trying to do here. She has mentioned the shock of Crossrail. I was not aware that that was anything to do with NDAs. But she was a Transport Minister, so she knows how projects work, and I was actually discussing Crossrail earlier today and asked exactly the same question about how on earth that happened. It is the case that sometimes, for whatever reason, costs increase, but I was not aware that with Crossrail there was an issue with NDAs. If she has information in that regard, I would be happy to receive it, because it would be news to me.
I call the noble Lord, Lord Bradshaw. Lord Bradshaw, I think you are muted. You have to unmute yourself with the new system. Lord Bradshaw, I am sorry, but as we cannot connect with you, we will move to the Minister.
My Lords, connectivity between HS2 and the wider network and the impacts of HS2 on that network are critical concerns. The central aim of HS2 is to improve connectivity along its length and to ensure that it integrates with all modes of transport, including local rail and bus networks.
On rail specifically, noble Lords will be aware that Crewe, at the northern end of phase 2a, has a long history as an important hub on the railway network. Construction of phase 2a will allow passengers who connect through Crewe currently also to connect to HS2 services. This will significantly improve rail connectivity, and we expect regeneration benefits at the station and in the surrounding areas. The details of those services cannot be defined now but will be worked out in due course through existing rail operations processes.
The time to assess the connectivity benefits of phase 2a, whether by rail or indeed any other mode, will be when the railway has been built and the services have been planned such that other services can be connected to them. In the meantime, the Government continue to invest in local and longer range transport infrastructure in the UK to improve connectivity and capacity, and we continue to identify and assess problems and possible solutions.
We continue to talk to local communities and railway operators and to invest in infrastructure and services that level up opportunities for everyone across the country. For example, the Restoring Your Railway programme includes an ideas fund that provides development funding for early stage ideas to explore options to restore lost rail connections. Ten proposals are already being funded at the development stage so that they can move from the first round of the ideas fund to the subsequent stages.
The noble Lord, Lord Snape, asked about the role of the ORR, and I shall be honest with him that I will have to write, but I will happily do so.
Many noble Lords have tried to lure me into a discussion of connectivity and services beyond phase 2a, but I fear that I would only repeat myself and I cannot countenance repetition, so I will not be lured at this point. We are talking about phase 2a, and I believe that there are huge opportunities for its connectivity, many of which were mentioned by the noble Lord, Lord Rosser, and of course the Government take into account those sorts of opportunities whether or not one is building HS2 in the area because local connectivity is always important.
Turning to the amendment of the noble Lord, Lord Rosser, the question of the impact of construction on the transport networks in Shropshire and Staffordshire has been considered quite extensively in the environmental statement. The majority of the phase 2a route passes through rural Staffordshire. As I can confirm from my own visit to the route, some of the sites are accessible only by very minor roads. The environmental statement that accompanies the Bill therefore gives significant consideration to the issue of getting workers to and from the worksites in the most efficient and least disruptive manner.
The draft code of construction practice sets out that workforce travel plans will be developed with the relevant highway authority and these will take into account public transport and cycling and walking routes. It is our expectation that the existing railway network will not be used much on a daily basis by workers on HS2 phase 2a. The environmental statement, taking a reasonable worst-case approach, assumes that all workers will commute either in a car or in a van, with some element of ride-sharing. Worker accommodation will be provided at some locations, and this will reduce the volume of journeys. We also expect many of the workers to travel outside peak hours.
I therefore do not see the merit of requiring an annual review of rail connectivity, as suggested in the amendment of the noble Baroness, Lady Randerson. There will be ongoing discussions about connectivity that will develop over time. The provision of transport in Staffordshire and Shropshire has already been looked at, but, of course, we will continue to be open to opportunities for further improvements. I hope that on this basis, the noble Baroness feels able to withdraw her amendment.
I have received a request to speak after the Minister from the noble Baroness, Lady Gardner of Parkes.
My Lords, my comments are about connectivity and probably relate more to Amendment 11 than to Amendment 14. The Minister has just spoken about connectivity, so it seems to be an appropriate moment to follow that point. I declare an interest in that I have close family living near the place where the trains will pass.
HS2 is a hugely expensive and long, drawn-out process; it should be viewed in that context. I am a supporter of high-speed rail, with the qualification that it is not satisfactory that direct travel between London and the north will still not be possible. Instead, travellers and their baggage will need to leave the station in Birmingham that they arrived at and swap to the new terminus, which, I understand, is to be called Birmingham Curzon Street, and is some distance away. This is not good enough for the 21st century; people are used to travelling with less disturbance and more convenience than that. This is an opportunity not to be missed to make a better connection.
I also concur with noble colleagues who have commented on trains, speeds, tracks and their suitability. There really is not much more that I need to say, because so much has been said, and I have been very impressed and interested, but I am a supporter. I hope that in the end this line will provide excellent connections and direct travel from London to the north. I wish it well.
I thank my noble friend Lady Gardner for joining the Committee and sharing her thoughts with us. I am pleased that she supports HS2. She raised some issues about Birmingham, and I do not have the information to hand. I will write to her with further information about connectivity and the issues she raised about access to Birmingham Curzon Street.
My Lords, I thank all noble Lords who participated in this short debate, particularly the noble Lord, Lord Adonis, for the impetus he has provided to us all with his points about the eastern leg and the whole issue of connectivity. As the noble Lord, Lord Berkeley, pointed out, the importance of getting across the Pennines is one of the main points here. He also emphasised the demand for shorter-distance travel, which, of course, is what is freed up on existing lines by the building of HS2.
The amendment of the noble Lord, Lord Rosser, deals specifically with issues in Shropshire and Staffordshire, and we might return to that later in the debate on road transport. There is clearly a very important need to improve transport links there. I say to the Minister, who said she wanted to stick to phase 2a: some of the examples I gave her from the Midlands Engine deal specifically with phase 1 and phase 2a and initiatives that flow from the existence of phase 2a. I am disappointed that she has failed to address in detail the point of my amendment, which is to force continued planning on HS2 as we move forward, and to integrate HS2 with other infrastructure developments in the areas through which it passes.
The rail industry is crying out for a smooth flow of future planning. It does not prosper from the stop-start approach, and there is a need for a smooth process in order to maintain skills and capacity within the industry generally. Having said that, I am happy to withdraw my amendment.
I will be brief. As the noble Earl, Lord Lytton, said, this amendment is about the attitude and approach of HS2. I tried to make a note of some of the things that he referred to. I think he referred to a highly impersonal manner and to the level of control to ensure uniformity of approach when not all cases are similar. I think he referred to the shifting of the burden of proof, to the delaying of payments and to the challenging of decisions line by line. I think he also referred to how it seemed that the Treasury put pressure on the DfT, which put pressure on HS2 regarding finances, and to how eventually all that financial pressure being applied was reflected down the line in the approach to claimants.
I will listen with interest to what the Minister says in reply and, in particular, to whether she accepts that there is validity in what is being said. The noble Earl clearly believes that there is, and I imagine that he is far from the only one who thinks that that is the approach of HS2. I know the Minister will take what has been said seriously. However, I hope very much that she will be able to offer some words that will at least indicate that she will look at the issue and seek to address the concerns raised.
My Lords, before I turn to this amendment I need to apologise. There was an error in my speaking note on Monday which I need to rectify. The error was in the statement that I made in relation to Amendment 13, dealing with advance payments of compensation for temporary possession of land. I stated that the Neighbourhood Planning Act 2017 provides for advance payment of compensation in relation to the temporary possession of land and that the amendment was therefore redundant. While it is correct that Section 24 of the Neighbourhood Planning Act 2017 will provide for advance payment of compensation in relation to temporary possession, these provisions will not apply to temporary possession of land under the powers of this Bill. This Bill, like previous hybrid Bills and previous orders under the Transport and Works Act 1992, has a bespoke regime for temporary possession of land which does not provide for advance payments. In my detailed response to the noble Earl, which I have already promised to provide, I will give further details as to the practice of HS2 in respect of the timing of payments of compensation for the temporary possession of land. I will circulate this to all noble Lords who spoke in Committee and place a copy in the Library of the House. I reiterate my sincere apologies that that happened. It will not happen again.
I turn to the amendment. We have heard the underlying concerns which may have led to this amendment and I will set out what the Government are doing about them. Land is needed for the HS2 scheme to build the railway. Some of this land is purchased by agreement but most of the land is acquired through compulsory purchase. This is an unavoidable fact of building most new transport infrastructure and I recognise that, to those affected, it can be devastating. Most individuals affected will accept what the coming of this scheme means for them, come to terms with it and find a way to come to an agreement with HS2 as to when their land will be acquired and what compensation they will receive under the compensation code. For some, they will be happy with the arrangements and agree that their treatment by HS2 has been fair and proper.
However, a few landowners will feel that they have been unfairly treated. They may feel that there is inadequate compensation or that HS2 has not taken due note of their specific individual circumstances. The Government have taken note of those individuals and have been reviewing how they can improve the way in which the project is delivered for all those affected. The noble Baroness, Lady Randerson, asked if we would have a good look at the business practices in this area, and we have already committed to do so.
My colleague Andrew Stephenson has instigated a rigorous land and property review to assess the wider concerns that the amendment seeks to ameliorate. The letter provided by the noble Earl, Lord Lytton, will form part of the evidence for that review, and I am pleased to be able to say that this review will be published very shortly. Of course, Sir Mark Worthington OBE, the Independent Construction Commissioner, deals directly with the complains of individuals affected by the project.
My Lords, the road traffic issue is one of the thorniest problems associated with this project. When you look at many of the objections or petitions to the Committee, they are actually objections to the building process. That is not surprising: people do not want heavy traffic going past their door when they are not used to it. On the one hand, of course, residents and environmental groups have pressed for more tunnels. There are expensive lengths of tunnels planned. However, with more tunnels and long tunnels, every mile of tunnel adds greatly to the amount of site traffic, with lorries having to remove soil as well, of course, as lorries carrying heavy equipment to the site.
A series of initiatives and techniques is proposed by HS2 to mitigate the impact of the traffic. However, I fear that the use of local roads—and the M6, for example —is bound to impact on travel times and convenience for people way beyond the area close to the line of the project. Schedule 17 ensures that construction routes are submitted to local planning authorities for approval, so I have some questions for the Minister. First, the Committee’s report says in paragraph 69:
“Construction routes used by large goods vehicles over 7.5 tonnes would require the approval of the local highway authority, except where they were using motorways or trunk roads and access to compounds with less than 24 two-way trips per day”.
That is 48 HGVs rolling past your window on a daily basis, which may not make much difference if you are on a major A road but would make a huge difference if you were on a quiet back road. Is this exception in relation to compounds, of the 24 two-way trips a day, a standard provision in construction contracts of this sort?
Secondly, given that it is the local planning authority that will make the decision on routes like this, what happens if the local planning authority withholds approval and cannot reach agreement with HS2 on a reasonable alternative route? Who then decides and where does the decision go? I hope that the Minister can provide us with some answers on that.
My Lords, the impact of the works on local communities is of critical importance to the Government, and I thank the noble Lord, Lord Rosser, for tabling his amendment to allow us to have this discussion.
The environmental statement for phase 2a runs to some 17,000 pages and, within it, there is set out in great detail the impact of the proposed scheme on local traffic levels. To manage traffic flow, the phase 2a Bill includes powers for the control of construction traffic, requiring qualifying authorities to approve the local roads to be used by large goods vehicles—and this was noted by the noble Baroness, Lady Randerson—where the number of large goods vehicles exceeds 24 trips per day, to or from a site. That is in total, yes, 48 trips, which over a 12-hour period is one every 15 minutes. The noble Baroness asked whether that was a standard provision in contracts. I shall have to write to her on that matter.
In addition, in the Bill there is a statutory duty on the nominated undertaker to have regard to the potential traffic disruption that may be caused and seek to minimise such disruption so far as reasonably practicable. I suspect that local communities will use that to make sure that action is taken, if there are measures that could be taken but which have not been taken.
As the project progresses and construction plans are finalised—and at the moment we should remember that this railway is not being built; there is no construction at all, so plans are still in development—local traffic management plans will be developed alongside these plans with local authorities, agreeing approaches to highways and public rights of way so that the impact on local communities is minimised.
Members of the public were able to petition the Bill Select Committees of both Houses. Further local mitigation measures have been introduced to the scheme to remove or reduce traffic and transport impacts on the basis of recommendations made by those Select Committees. In some cases, that included restricting and reducing construction traffic, maximising the use of rail and haul roads, and undertaking further traffic surveys.
The noble Lord, Lord Rosser, raised the village of Woore. I took some time to look at my phone and see on Google Maps where Woore is, and it is at the junction of the A51 and the A525. While I have every sympathy for those who will be impacted, because there will be an increase in traffic and construction traffic, it is not the case that at the moment they do not have any traffic going through their village, which is at the confluence of two A roads. We need to make sure that they get the sort of measures that they are expecting. My understanding is that there has been no failure of engagement with Woore and that traffic-calming measures have been offered. Perhaps there has been a mismanagement of expectation here. As construction plans are developed, traffic management plans can be developed; without them, we can have all the engagement in the world, but that will not actually achieve anything until there are construction plans to put into play.
I am sure that Minister Stephenson, when we meet him next week, will have something to say about his ongoing commitment to community engagement and how he intends to be involved with it, since it is a very important part of his work. In the meantime, I hope that the noble Lord feels able to withdraw his amendment.
There are no questions to the Minister, so I call the noble Lord, Lord Rosser.
I first thank the Minister for her reply and all noble Lords who participated in the debate. I just comment that I made it clear when I made my contribution that it was at the junction of the A51 and the A525 in the centre of the village. I also said that what would be entailed was widening of those roads and other works at certain points and that that junction was right at the centre of the village.
I have perhaps made some progress. It was after all the Select Committee that said that there needed to be further discussion as soon as possible—because safety issues were involved—between HS2, Shropshire Council and the parish council. I was not asking the Minister—nor do I think she took it this way—to immediately intervene. I asked that, now we have a dedicated Minister for HS2 and a cross-government ministerial group, what would be their involvement in ensuring that HS2 engages properly.
This is not the first occasion that we have had local communities saying to us that in their view—rightly or wrongly—they do not feel that HS2 engages as well as it should. I also asked whether, if the discussion with the parish council was either delayed or not being entered into in the spirit and intent that the Select Committee envisaged, it could take its concern to the direct dedicated Minister for HS2. I think that, in her closing comments, the Minister referred to the role of the Minister for HS2 in making sure that there was community engagement. I appreciate that that was on a general basis—she was not talking specifically about this case—but I hope that this is one where, if the parish council still believes that the discussion is not being entered into with the right spirit and with the necessary intent, it would not be dismissed by the dedicated Minister for HS2 if it made an approach to him with its concerns. It is then obviously up to the Minister what he would or would not do in the light of that approach.
Having made those comments, I again thank the Minister for her reply and beg leave to withdraw my amendment.
I just want to apologise to the noble Lord, Lord Rosser, because I did not hear him mention the road names and now I feel very silly that I did not. I also want to say that in my role as Roads Minister, for example, if a local community feels that Highways England is not engaging with them, they bang on the door of their local MP, the local MP comes to see me immediately and tells me off, I go to tell off Highways England and something gets done. The HS2 Minister will play precisely the same role that I play in making sure that local communities are dealt with properly by whichever delivery body is working with them. We can obviously discuss this with Minister Stephenson shortly, but if I did not explain that particularly well, that is exactly the role I expect him to play.
My Lords, I knew there was a reason why I was looking forward to this one. I would be very grateful if the noble Earl, Lord Lytton, could send me the article about party walls; I am sure that all noble Lords would very much appreciate reading it.
On the Motion to remove Schedule 23, rather than address each of the noble Earl’s points in detail, as I do not feel properly qualified to do that, I shall put forward the Government’s reasons why the schedule should stand part of the Bill. We agree with him that the Party Wall etc. Act 1996 works in most circumstances. However, for major railway projects authorised by Parliament, it is appropriate to modify its provisions to streamline its processes, but also retain its protections for neighbouring owners. This was the approach taken by Parliament for the phase 1 Act and the Crossrail Act 2008, and it is the approach being taken here.
The modifications to the party walls Act in Schedule 23 have developed from those included in the Crossrail Act. The experience from the construction of Crossrail was that compliance with the party walls Act process, even as modified, raised risks to the project programme. It is therefore appropriate to alter the process for the HS2 project, as agreed to for phase 1, to avoid construction delays and associated cost implications.
The provisions in Schedule 23 are identical to those already agreed in the phase 1 Act, so this Bill ensures consistency across the HS2 project. Before I outline the proposed modifications in Schedule 23, I wish to make something clear. The regime I will outline does not apply where the underpinning works to adjoining buildings are due to HS2 excavations. Given the more intrusive nature of such works, a different regime is required. This regime is set out in Schedule 2 to the Bill and provides for the giving of notice; the right for adjoining owners to serve counter notices; for disputes to be referred to arbitration; and for payment of compensation. Similar provisions as regards the underpinning of buildings were made in the phase 1 and Crossrail Acts. I hope that goes some way to reassuring noble Lords that the protections for adjoining owners, where major excavation works are needed, are comprehensive.
I shall now continue briefly to summarise the effect of the proposed modifications in Schedule 23, and their purposes. First, the nominated undertaker, HS2 Ltd, would not have to serve notices under the party walls Act to carry out works to which the Act relates. Therefore, the adjoining owner does not have the opportunity to serve a counter notice. This simplifies the process and time taken for agreeing the works. However, the works would still have to be carried out in accordance with the plans and sections agreed with the adjoining owner, as is the process under the current party walls Act. If they are not agreed, the matter would be referred to a single arbitrator for determination, which I will refer to later.
Secondly, a neighbouring owner carrying out works under the party walls Act would not have an automatic right to place footings or foundations on HS2 land or to carry out works required to safeguard HS2 buildings and structures. The nominated undertaker could elect to carry out any such agreed safeguarding works instead of the neighbouring owner at the neighbouring owner’s expense. These modifications are necessary to protect the railway.
Thirdly, any disputes would be determined by a single arbitrator appointed in default of agreement by the president, at the time, of the Institution of Civil Engineers. This would replace the more cumbersome disputes determination process provided by the party walls Act. The purpose of this modification is to provide a speedier and simpler process for dispute resolution. It would ensure that, in a case involving complex railway works, the dispute was determined by a civil engineer with relevant skills, while leaving flexibility for a surveyor to be appointed where that was appropriate. In other respects, the provisions relating to the dispute process, including costs and appeals to the county court, would be the same as under the party walls Act.
The modifications would still provide safeguards for the adjoining owner including the right to compensation and for expenses to be paid in accordance with the party walls Act; the requirement to be given at least 14 days’ notice of the nominated undertaker’s entry on to land to carry out works, except in the case of emergency; that works are to be executed in accordance with such plans, sections and particulars as may be agreed between the nominated undertaker and the neighbouring owner or, in the event of a dispute, are settled by arbitration; and for disputes to be determined by a single arbitrator under the dispute resolution provided by Schedule 23.
These safeguards protect adjoining owners appropriately. To be clear, under the provisions of the Party Wall etc. Act 1996, which still apply, any works required to a party wall would be undertaken at the project’s expense, and compensation would be payable for any damage to the adjoining owner’s property caused by the works to the wall. These safeguards also go alongside the other protections for adjoining owners inside and outside of the Bill. The environmental minimum requirements, through the code of construction practice, provide for the necessary protections to manage and control any potential impacts on people, businesses and the natural and historic environment that may arise from the construction of the works authorised by the Bill.
Finally, we come to the point raised with great insight by the noble Lord, Lord Snape. Are there any party walls on the phase 2a route? The route is rural in nature. It is therefore not expected that many, if any, disputes requiring arbitration under the modified procedure will occur due to the works authorised by this Bill. Where necessary, the modified process would provide a safe and speedy resolution for both the project and the adjoining owner, if indeed there are any party walls on the route.
I shall write in response to the issues raised by the noble Earl, Lord Lytton. I would be grateful if the noble Earl could give some consideration to, and perhaps clarify, exactly what he would wish to change and why. It is very difficult to deal with a long list of, “I don’t like this, I don’t like that”, rather than understanding, given where we are in the process, what would make the difference to this Bill if it were to be changed.
Following all that, I hope that the noble Earl will feel able to withdraw his objection to the schedule being agreed.
There are no questions to the Minister, so perhaps the noble Earl, Lord Lytton, might want to comment briefly on what has been said.
(5 years, 3 months ago)
Lords ChamberTo ask Her Majesty’s Government what steps they plan to take to improve rural bus services.
My Lords, the Government are developing a national bus strategy to set out how national and local government and the private sector will come together to meet the needs of local communities, including those in rural areas. The Government have established a £20 million rural mobility fund to support demand-responsive services.
My Lords, over the last 10 years, around half of council-supported bus services have been lost. This has hit rural areas particularly badly. I am glad to hear from the Minister that the Government are taking some action on this, but do they accept that it is time to ensure that rural bus services do not disappear altogether and to look again at the deregulation arrangements introduced in 1986?
My Lords, we believe that local authorities have a significant role to play in ensuring that we protect rural bus services. To that extent, local authorities receive £43 million from BSOG, and in September 2019 we announced a further £30 million of local authority funding. Now we need to ensure that local authorities step up and support the more vulnerable services.
My Lords, in April last year the Lords Select Committee on the Rural Economy was told about the spiral of decline in both the funding and provision of rural public transport. It recommended that the Government should review the different funding schemes, aiming to put them together in a single investment pot in each area, and then let local people develop integrated, demand-led, case-based systems. Has anything been done?
As I mentioned, the Government are working extremely hard on the national bus strategy. The sort of proposals that the noble Baroness outlined are the sort of things that we are looking at. It is very much time for local accountability for local bus services, taking into account the needs of the local community.
My Lords, it is good to hear that the Government are doing some planning on the issue of rural bus services, but it is not enough to keep pushing responsibility back to local councils when they simply do not have enough money to take forward anything like the amount of services necessary. In view of the fact that we need a national strategy to reduce all our carbon emissions, encourage people out of their cars and generally become better functioning members globally on the issue of climate change, surely the Government can see that funding councils so that they can do their job properly is the right way forward.
It was a little hard to hear the noble Baroness’s question but I believe it was about funding local councils. These considerations are of course being had as we think about the national bus strategy. However, I say to the noble Baroness that it is not just about money; it is also about skills and capacity. We need local authorities to boost their local transport teams so that they have the skills and capacity to plan the sort of improvements that we need in bus services.
My Lords, I declare my interest as a member of the NFU. Does the Minister agree that rural bus services play a vital role in the well-being of communities, especially in less favoured areas such as the Staffordshire moorlands and the Peak District? Does she further agree that these services must be encouraged, assisted, promoted and funded in all such areas in every way possible?
My noble friend is quite right. I assure him that the national bus strategy will include measures suitable for all parts of the country, whether dense urban settings, market towns, sprawling suburbs or the most rural areas. We will need to work with local authorities; this is not something that can be dictated by national government. We will work with local authorities, particularly those in rural places, to ensure that they have appropriate plans in place.
My Lords, the most successful rural bus operations are those direct, regular inter-urban services that form a network over much of the country. If the Government intend the national bus strategy to be interested in developing truly rural services, are not further improvements to the existing network that I have described more likely to create a framework that could be built on by local authorities in developing their own truly rural services?
I partially agree with the noble Lord in that it is key for all local services, wherever they are, to be integrated with other modes, be they long-distance coach-type journeys or rail services provided between cities or over shorter distances. Integration is important, so to a certain extent it needs a guiding mind. We will be looking to local authorities to pick up the pen on that and take it forward.
My Lords, we all agree that public transport is essential for those who live in rural areas and do not have access to a car. However, does it all have to be provided by buses, which often do not run at the times when people want them, do not go from home to destination and back, and frequently lead to narrow country lanes being blocked by large vehicles? Can the Minister do more to promote demand-responsive, community-based services to complement those provided by the bus?
My noble friend is right: an empty double-decker bus careening through narrow country lanes simply will not do. One of the solutions that may be appropriate for rural areas is demand-responsive transport. That is why in September 2019 we launched the £20 million Rural Mobility Fund. We asked for expressions of interest and have had 53. I take great heart from that and at the moment we are reviewing those. We probably do not want to launch them now, in the middle of the pandemic, but we hope that will go on to prove what kind of demand-responsive transport works and what does not, and then we will be able to roll it out more broadly.
Half of households on low incomes and two-thirds of jobseekers do not have access to a car. Bus services are also crucial to rural economies and small local businesses. However, a study by Warwick University in 2019 found that over a decade the price of travelling by bus has risen by 39%, way above the level of inflation. Does the Minister accept that this has contributed to the decline in bus passengers and that it has been and is damaging, both socially and economically?
What the Minister accepts is that we must always strive to improve our bus services. In February 2020 the Prime Minister talked about his view for the bus network, with more high-frequency services and better bus prioritisation. With those two things, one automatically gets lower fares. If we can put all those services on cleaner, greener buses, that will be all to the good.
My Lords, an overreliance on short-term competition funding for the long-term task of transforming transport networks is inefficient and costly. What assessment has the Minister made of the Local Government Association’s call for capital expenditure to be funded through long-term secure grants to councils to plan a comprehensive pipeline of infrastructure and capacity improvements focused on the needs of local networks as a whole?
I have some sympathy with my noble friend in that longer-term funding can sometimes indeed be more efficient. However, it should be said that short-term funding and competitions for larger amounts of funding play an important role in how we fund transport infrastructure. In the case of bus infrastructure specifically, we will be looking to local authorities to plan bus priority measures and then we will outline how we can help and encourage them to put those in place.
My Lords, what keeps many buses, especially on rural routes, going is elderly people’s travelcards. Often, if I am on a bus, I know that most of the people going to the remote villages are travelcard holders. It is better now that it has been extended in Wales to other age groups. So I ask that, in the coming demand on council budgets, we safeguard these travelcards because without them we will not have the passengers or the routes.
My Lords, the Government support local authority spending by around £1 billion a year so that older and disabled people can travel on buses; £877 million of that is on statutory schemes, while £230 million is used on discretionary schemes, whereby local authorities decide to extend the scheme to other people. We are well aware of the importance of these concessionary payments to the bus operators, such that they continue services, and we support them.
My Lords, the time allowed for this Question has elapsed.
(5 years, 3 months ago)
Grand CommitteeMy Lords, in general, we view the amendment favourably. It seems to have two points to it. The first is to try to secure some continuity, as spelled out by the noble Baroness, Lady Randerson. The concept of continuity in railway construction is a sound one. Unfortunately, it is a sound principle that we tend not to keep to. The key part of the amendment seems to be the question of whether Her Majesty’s Government will commit to building HS2 phase 2b to Leeds in full. For the avoidance of doubt, Labour’s answer is that we fully support the HS2 concept and the concept that phase 2b should be built to Leeds in full.
I think we already know what the Minister will say. Andrew Stephenson was asked this question in the other place on 22 October. He said that
“when the Prime Minister gave the go-ahead to HS2 in February this year, he said that we were committed to delivering phase 2b but how phase 2b was delivered would be subject to the integrated rail plan. We have been making significant progress with the integrated rail plan. Sir John Armitt and the National Infrastructure Commission have already published their interim report. We look forward to their further recommendations and to responding to them before Christmas.”—[Official Report, Commons, 22/10/20; col. 1213.]
That caused me to look up the interim report, since it seems central to how the question posed in the amendment will be answered. When I found it and skimmed through it, I came up with two questions. The first is very simple: when will the final report on this issue be published? The interim report promises that it will be published in November. It should be noted that Andrew Stephenson said that it would be published by Christmas. If it were published in November, it might be available before we get to Report, which would be extremely useful. When does the Minister expect the report to be published and when does she expect the Government’s response?
The other perhaps disturbing feature of the interim report is the commitment to a very different methodology from that used in the past. Essentially, what is said about a plan depends on the methodology and assumptions in the analysis that answers the question, to what extent and to what standard should the railway be built? Can the Minister assure the Committee that the methodology and assumptions will produce an answer no less favourable to the Leeds branch than those used in HS2? Put another way, if the criteria used in the original HS2 decision would say yes to Leeds but the new criteria say no, surely, this cannot be levelling up. I have seen precious few examples of levelling up, and a failure to build HS2 phase 2b to Leeds—indeed, a failure to build HS2 in full—surely is a statement that the commitment to levelling up is meaningless.
My Lords, I thank the noble Lord, Lord Adonis, for tabling the amendment and all noble Lords who have taken part in this first debate in Committee on the HS2 phase 2a Bill. Before I go any further, on behalf of the Government, I extend my sincere thanks to the Select Committee. I am particularly grateful that its members agreed to undertake hearings for petitioners virtually. That was the first time this had been done and the noble and learned Lord, Lord Hope of Craighead, and the other committee members did an incredible job in the most challenging of circumstances. Where petitioners chose to appear in person, the committee undertook hearings in a hybrid fashion and handled all the different ways of working with ease. I therefore put on record my thanks, and those of the Secretary of State and the Government as a whole, for its work and ensuring that we maintained momentum on this incredibly important Bill.
Turning, then, to the debate on this first amendment, I note that many noble Lords know what I will say. I hope I will not disappoint and that I will get my words right. The noble Lord, Lord Adonis, is a great and very knowledgeable advocate for HS2 and I thank him for his continuing support for and dedication to getting the railway built, and for setting out so passionately his reasoning. Despite my appreciation for the noble Lord’s tenacity, I do not see that the amendment is needed. I also feel that potentially, it is very unhelpful.
There is simply no benefit or technical justification for making the progress of work on this section of railway—a very short one of just 36 miles, going from the West Midlands to Crewe, also known as phase 2a —contingent on the deposit of a Bill for the eastern leg of phase 2b. While the Bill is part of a much bigger project, as noted by the noble Lord, Lord Liddle, the amendment would delay works on phase 2a by a significant period, given the scale and complexity of hybrid Bills and the time needed for their preparation.
All being well, if we can get this Bill through your Lordships’ House, we expect work to commence in the early part of next year. It will not surprise noble Lords to hear that there is a window in the early part of next year in which the work needs to start; much of it is environmental work that is sometimes limited by the time of year in which it can take place. We do not want anything to delay the passage of the Bill and, therefore, the start of the works for phase 2a. Secondly, those works are intrinsically linked to work going on in phase 1. As the noble Baroness, Lady Randerson, noted, continuity is really important. The two works will eventually proceed alongside one another. Therefore, it would be better to get the Bill through.
We have come a long way in the last 12 months or so since Second Reading. We had the Oakervee review, in which Douglas Oakervee said that the whole of HS2 should go ahead, but that the Bills for phase 2b —there will be Bills, not a single Bill—should not be introduced to Parliament before the publication of the integrated rail plan, which, as noble Lords will have heard me say before, is due to be published by the end of the year. Delaying the beginning of works on phase 2a until an eastern leg Bill has been deposited in Parliament would serve only to delay the phase 2a works and the benefits of HS2 reaching the north and the Midlands.
She can? Is it now the firm intention of the Government to split phase 2b and to have separate Bills for Crewe to Manchester, and then Birmingham to Leeds? The Government have made an extremely significant statement, if so.
The noble Lord, Lord Adonis, will know that because the hybrid Bills sometimes prove so challenging to get through, if they are too large, it was one of the recommendations of Oakervee to produce smaller Bills. It is, therefore, yes, one of the things that the Government are looking at.
I was not aware that the Government had stated that it was now their policy. The Minister has said that it is a matter of government policy this afternoon and that there would definitely not be a single Bill, so is it now the Government’s policy to separate the two?
My Lords, I say to my colleagues and friends who lead local authorities and are MPs for constituencies in the east Midlands and Yorkshire that they should take careful note of that extremely significant statement, because what it means is—and just at that point, the Division Bell rings.
Is it not? It is the Commons? It is so confusing. What that means is that the east Midlands—which has all the challenges of deprivation and economic growth referred to by the noble Lord, Lord Bradshaw, in his opening remarks—and Yorkshire will now definitely be downgraded relative to the north-west in the construction of HS2.
The important point about the separation of the hybrid Bills is that it will not just mean that the phasing is now separated, which risks the continuity referred to by the noble Baroness, Lady Randerson, and my noble friend Lord Tunnicliffe—he has huge experience of constructing railways, as a former managing director of London Underground, so he absolutely understands this point. If the Bills are to be handled and passed separately, it is also very likely that there will be a substantial period between what is now to become phase 2b and phase 2c—Birmingham to the east Midlands, Sheffield and Leeds—even if the Government proceed with phase 2c. The separation of the Bills makes it all the more likely that phase 2c will be delayed for a substantial period beyond phase 2b.
I am grateful to the Minister for replying to the debate but I am more concerned after her remarks than I was before, and I hope that local authority and political leaders in the east Midlands and Yorkshire will have taken very careful note of what the Government have said today—a categorical statement that they intend to downgrade and possibly deny entirely the benefits of HS2 to the east Midlands and Yorkshire.
As I said, there is a problem of language here. The Minister said it was the Government’s policy to provide the benefits of high-speed rail to the east Midlands and Yorkshire. There is no way you can provide the benefits of high-speed rail to the east Midlands and Yorkshire unless you provide high-speed rail to the east Midlands and Yorkshire. The Government are using weasel words such as “benefits of” without making the commitment which must flow from that if these words are to have real meaning—actually to build the high-speed line. The Minister is smiling at me but the one thing she will not do, and has not done today, is make a commitment actually to build this railway. I say to her, as I say to the local authority leaders and MPs in these regions, that they must not accept a shedload of waffle from the Government about benefits, reviews, staging or integrated plans if there is not a commitment actually to build the railway.
At the end of the day there will either be a railway or not be a railway and the whole tendency of government policy at the moment is not to build the railway from Birmingham to Leeds, and that will have a really devastating impact on the society and economies of the east Midlands, Yorkshire and the north-east if that is the case. I make no apology for raising this issue. I will return to it on Report. But at this stage—does the Minister wish to come back? I am very keen that she does.
She would like to very briefly come back. I will not take a shedload of waffle from the noble Lord, Lord Adonis, either. He has taken a simple statement—that a very large and complex Bill may be broken up into smaller Bills to make it more manageable—in a direction which certainly was not the intention of those words and I cannot believe he has been able to read that into them. Be that as it may, all I have done is confirm that one big Bill may be split into smaller Bills. That is it.
Minister? You are fine?
Just to clarify again: if the proposer of an amendment, in their winding-up remarks, raises a question for the Minister, the Minister may respond to it. We cannot have a further debate in Grand Committee under the current system.
My Lords, I generally support this amendment, which is really about tone.
The noble Baroness, Lady Jones, and my noble friend Lord Adonis have touched on the question of the treatment of any burial sites and monuments that we come across. I felt sure that there was something, somewhere that requires HS2 to show some respect in this regard. My research shows that an information paper on burial grounds was published on 15 February 2019 for the Bill before us. Paragraph 3.1 states:
“Any human remains affected by the Proposed Scheme will be treated with all due dignity, respect and care. Any impact caused by works to construct the Proposed Scheme on human remains and associated monuments is an emotive and complex matter and HS2 Ltd and the Promoter recognise their duty to address the concerns of individuals and communities.”
The essence of that assurance is that any remains should be treated with
“all due dignity, respect and care.”
Had that been carried into the Bill, perhaps through some wording in the Explanatory Notes, one would feel that this would be handled sensitively. During the works for the Jubilee Line extension we did end up building through burial sites, and we were sensitive to how that was managed. I think that we caused no offence as a result.
Unfortunately, no reference is made to “dignity, respect and care” in the rest of that document. Nowhere in Schedule 20 is there any sense of that, nor is it set out in the Explanatory Notes. I hope that the Minister will find some way of assuring the Committee that those key cultural attitudes to burial sites will be carried through in the execution of the project.
My Lords, I thank the noble Baroness, Lady Randerson, for tabling this important amendment. As she will be aware, I wrote to her on this matter at the end of last week and I have shared that letter with other noble Lords who have spoken in the debate. When I am not taking HS2 Bills through the Lords, I am the roads Minister and am well aware that one can make finds at any point in the construction process. Highways England has very good systems to deal with this, and I am very pleased to be able to tell noble Lords that HS2 does, too.
However, it is worth pointing out that no gravestones, monuments, burial grounds or human remains have so far been identified along the phase 2a route. The noble Lord, Lord Liddle, and the noble and learned Lord, Lord Hope, mentioned that they had not come across this issue in the Select Committee, and that is why we do not expect to make such finds. However, as noted by the noble Baroness, Lady Randerson, and the noble and learned Lord, Lord Hope, that does not mean that such artefacts will not be there. Human remains and monuments are often discovered during construction and if this happens, requirements are already in place for HS2. They are set out in great detail in the Heritage Memorandum, which is one of the Environmental Minimum Requirements. There is also the phase 2a burial grounds, human remains and monuments procedure. These documents ensure that the right approach is taken—one very much in line with that set out by the noble and learned Lord, Lord Hope.
My Lords, I have to admit that I barely understand this debate. I did my best to research it and it seemed to be about giving the promoter considerable flexibility to exercise powers under the TWA procedure to create opportunities for activity on land that might be outside the Bill, as well as other rights to do things. I am sure the Minister, briefed by her excellent team, fully understands what this is all about and I will be very grateful if she explains it to me, ideally in words of one syllable.
My Lords, I thought that the noble Lords, Lord Adonis and Lord Liddle, did a very good job of making many of my points for me. Then, of course, the noble and learned Lord, Lord Hope, came in and did a proper job on the matter in hand. I will play this with a straight bat and read out what I have here, which I thought I understood when I read it through over the weekend. I hope this will be helpful to the noble Lord, Lord Tunnicliffe. It was certainly helpful to me. When I got to the end of it I thought, “Right, I get this,” so here we go.
It is normal practice on major infrastructure projects such as HS2 or Crossrail that, during construction, further planning consent needs to be sought for details of the scheme that were not anticipated when it passed through Parliament. One of the means for doing this in relation to railway works is an order made under the Transport and Works Act 1992, known as a Transport and Works Act order.
During its construction, Crossrail has had three such orders, addressing changes in station design at Whitechapel, stabling arrangements at Plumstead and connections between platforms at Paddington, all of which arose from continuing discussions on the design and operation of the railway after the Crossrail Bill was enacted. Phase 1 of HS2 has had one Transport and Works Act order so far, in that case for new sidings near Calvert Green for use by a waste-to-energy facility. This was to honour an assurance given to the operator of the facility during the passage of the phase 1 Bill. The facility could not be included in the scheme because of the time needed to develop the proposals, which would have unduly delayed progress. As we build phase 1, it may be found that there is a need for more orders.
I will mention briefly the process that such a Transport and Works Act order goes through. The application for the order is submitted to the relevant Secretary of State—in England that would be the Transport Secretary and in Wales it would be the Welsh Government. The applicant must then make the application public by publishing notices in local newspapers, by writing to people directly affected, by posting notices near the works and by notifying specified organisations. If the scheme is large, the applicant may be required to hold public information events. It is clear that such orders go through a large amount of consultation.
People who wish to object then have six weeks to notify the relevant decision-maker of their objections. If there are many objections or if there are statutory objectors—those who are considered directly affected because their land is being bought compulsorily, for example—there may be a public inquiry. A recommendation on the application for the order will then be made to the Secretary of State, who will ultimately make the decision as to whether it should be approved. There may also be a need for the applicant to apply separately for planning permission, but that is another process.
If an application for a Transport and Works Act order were to be made in relation to phase 2a of the railway, Clause 49 would allow such an order to adopt, as necessary, any provision of the Bill so that the works were constructed within the same legal and planning framework as the rest of the scheme. Further, Schedule 1 to the Bill allows any engineering work shown on the plans and sections that were submitted alongside the Bill to be substituted by a work not so shown. Any such work would still be bound by the environmental minimum requirements of the scheme. What this amendment seeks is already addressed in the Bill.
However, we know that the amendment is not entirely about that. I know that the hybrid Bill process in this House can be a little frustrating. As I said to the noble Lord when discussing his amendment with him last week and as I will repeat now, it is accepted practice on the basis of fairness that, as the second House to consider the Bill, it cannot make amendments that would extend the powers in it; for example, to acquire new rights over land to change the route. This practice was confirmed by the noble and learned Lord, Lord Hope, as chair of the Select Committee that considered this Bill and by the noble and learned Lord, Lord Walker, who chaired the Select Committee that considered the phase 1 Bill in 2016. The Select Committee chaired by the noble and learned Lord, Lord Hope, also considered the suggestion that instructing the promoter to make an amendment to the scheme through a Transport and Works Act order would provide a valid alternative to taking powers in the Bill. The committee did not take this view.
I agree that this is the right approach. Such a committee directing the outcome of an application for a Transport and Works Act order without the formal application being made and therefore without any such change going through the process I described would be unfair. It would take away the opportunity for those who wished to object to have their concerns heard.
I agree with the conclusions of both committee chairs. It is right that if a Transport and Works Act order was necessary, any such order should be entirely outside the scope of the Bill, but I would add that any such order, being associated with phase 2a of HS2, should attract the environmental protections that this scheme offers. The amendment would do nothing to change the ability of the nominated undertaker to use a Transport and Works Act order to amend the scheme; nor would its use in a future HS2 Bill allow the Select Committee in the second House to adopt a different approach. The Bill makes sure this is the case. I trust that this fully explains the stance that the Government take on this matter.
However, I am given to understand that the House authorities are considering a further consultation on the hybrid Bill process in the near future. If the noble Lord, Lord Berkeley, has an issue with that process, he may wish to participate in those discussions—I am sure that his input would be welcome. As such, I wonder whether he might withdraw his amendment.
My Lords, I have had no requests to speak after the Minister, so I call the noble Lord, Lord Berkeley.
No, Lord Framlingham, you will speak after the Minister, so you will be the next speaker after this one.
My Lords, I thank the noble Lords, Lord Berkeley and Lord Tunnicliffe, for their amendments in this group. They have been grouped together as they cover the very important areas of transparency and accountability. The Government agree that these areas are absolutely vital; we must ensure that the project is successful, and transparency and accountability will be at the heart of that. Like the noble Lord, Lord Adonis, I believe that HS2 must always strive to do better. That is good practice for all organisations.
That is why the Government have committed to providing an update to Parliament every six months on the progress of HS2. The first update was provided on 13 October, as has been noted, and that report covers data reported by HS2 Ltd to the end of August 2020. A copy of the report has been placed in the Libraries of both Houses. Furthermore, HS2 Ltd provides detailed annual reports to Parliament, as required by the DfT/HS2 Ltd framework document. Noble Lords will be aware that as principal accounting officer, the Permanent Secretary of the Department for Transport is accountable to Parliament for capital contributions and resources provided by HS2. The noble Lord, Lord Berkeley, referred to a recent letter from the Public Accounts Committee to the Permanent Secretary setting out a number of requests and observations, and this is a prime example of holding the Government and HS2 to account.
Specifically on environmental matters, if it is felt that a contractor is not meeting the requirements of the environmental minimum requirements, there is a three-step process that can be followed. In the first instance, the issue can be reported to the nominated undertaker, which in this case would be HS2. Secondly, if the issue is not resolved satisfactorily, it can be escalated and reported to my department, which can direct HS2 to implement corrective action. Finally, the issue can be reported to Parliament: to the Speaker in the House of Commons or to the Chairman of Committees in the House of Lords. Furthermore, individuals and bodies can raise issues with Sir Mark Worthington OBE, who is the independent construction commissioner for both phase 1 and phase 2a. This ensures access to clear, impartial advice and enables strong scrutiny of the project.
I turn to the issue of ancient woodlands. I understand and I commend the interest taken in our invaluable ancient woodlands and veteran trees. In the development of the project, every effort has been made to avoid or reduce the impact on ancient woodlands. For example, following extensive engagement with the Woodland Trust, we were able to offer a number of assurances in relation to ancient woodlands and veteran trees. Those include the retention of Noddy’s Oak near Stockwell Heath in Staffordshire, along with five other veteran trees.
I welcome the comments of the noble Lord, Lord Liddle, because we believe that we have a productive relationship with the Woodland Trust and we want very much for that relationship to continue. There are some places where we have not been able to protect a veteran tree or a piece of ancient woodland, and of course this is regrettable. However, HS2 is putting in place all possible mitigations to safeguard our environment as a whole. The environmental statements already report the likely significant effects of the phase 2a scheme on trees and woodland habitats, including veteran trees and ancient woodland. They also set out the proposed mitigations and compensations for the likely effects of the railway. HS2 has published an ancient woodland strategy for the scheme that sets out the expected loss of ancient woodland habitat and the range of compensation measures being proposed in response to those losses.
I know that there are concerns about how contractors can be held to account in undertaking works in or near ancient woodlands. As I have outlined previously, if it is felt that a contractor undertaking works authorised by the Bill is not meeting the environmental minimum requirements, there are steps that can be taken to ensure that there is an investigation. If any corrective action is needed, it is taken, and ultimately these steps can include a report to Parliament.
The Department for Transport and HS2 have done extensive work to assess, document and publicise the impact of the proposed scheme on the ecology of our beautiful urban and rural landscapes. A number of noble Lords have gone into detail about veteran trees and ancient woodlands, along with the broader environmental impacts of HS2. I will write to them in more detail on this because there is a fair amount to cover on the no net loss commitment of HS2, along with other things that can be done in order to achieve some net gain. I will also add some information on costs. Unfortunately, I do not fully recognise the costs that were put forward by my noble friend Lord Blencathra. I am not entirely sure where they came from, so I will set those out in more detail. I will also add some information about the nature and timing of the various reports. I realise that quite a number of reports have been produced and that it would be helpful for all noble Lords to understand where we are. There will certainly be more on the environmental matters when the Government’s response to the report of the Select Committee is published, which will happen shortly before Report. Also, in relation to this, I will arrange a meeting for noble Lords, probably with the Minister for HS2, so that we can go into these matters in more detail.
I believe that the current level of reporting across the project, which has only very recently been revised, is proportionate and sufficient. It comes alongside increased oversight of the project by not only my colleague Andrew Stephenson, the HS2 Minister, but the ministerial task force chaired by the Transport Secretary, which includes ministerial colleagues from across government. Both these measures are relatively new. They need time to bed in and for the impact to be felt. I therefore invite the noble Lord, Lord Berkeley, to withdraw his amendment.
I have received requests to speak after the Minister from the noble Lord, Lord Framlingham, and the noble Baroness, Lady Young of Old Scone. I call the noble Lord to make a short contribution.
My Lords, I hope that your Lordships can now hear me. I speak in support of Amendments 4 and 9, proposed by the noble Lords, Lord Berkeley and Lord Tunnicliffe. I particularly thank the noble Lord, Lord Berkeley, for his tenacity and detailed, professional questioning of what I call a farcical project—HS2.
I am afraid I must remind the Committee that had my amendment to the HS2 Bill, which I proposed on 31 January 2017, been passed, HS2 would now be history. Unbelievable amounts of money would have been saved and much anguish and environmental damage would have been prevented. I had just 26 supporters on that day in your Lordships’ House, but two of them were uniquely placed to understand the project. The noble Lords, Lord Burns and Lord Macpherson, had been Permanent Secretaries to the Treasury; one under Gordon Brown and the other in the time of David Cameron and George Osborne. They were both so convinced that HS2 was a mistake that they voted to stop it, even at that stage.
It has often been said that HS2 is a vanity project, and that is true. It was conceived in what can be described only as a fit of misplaced enthusiasm, costed on the back of an envelope and somehow pushed through government, where, just like the emperor’s new clothes, no one seemed able or prepared to ask the most fundamental questions about its feasibility. From the beginning, Ministers have stubbornly refused to listen to any suggestions of shortcomings, whether about speed, capacity, environment, construction or cost. Money is no object. HS2’s chief executive Mark Thurston has said:
“I’m not worried about overspending”.
When asked on the radio what the Government were prepared to spend on it, the then Transport Minister, Chris Grayling, replied “Whatever it takes.” If it takes £100 billion, we could rebuild every hospital in the country for that kind of money. This ministerial refusal to listen is what is frustrating so many railway professionals and interested organisations. It is, quite frankly, ridiculous that Government Ministers are not treating with more respect the views of those eminently qualified to contribute to the issue.
When HS2 was first conceived, a large body of professional railway engineers wrote to the Minister offering to come and see him to share their concerns. He refused even to see them. The advice of people such as Michael Byng, a recognised expert in the field, is ignored and the Woodland Trust, the custodian of our ancient woodlands, finds it impossible to obtain the information it needs. I recently received a communication from an organisation that had given evidence to our House of Lords Select Committee. It said:
“Unfortunately, we do not consider that we have received a fair hearing and feel that the hybrid Bill process is not an appropriate method for making independent and valued engineering, environmental and economic judgments about something so important as the HS2 project. It is also deeply frustrating that HS2 Ltd’s case and the evidence of its witnesses, however technically weak, is automatically accepted as unchallengeable, as if it was the gospel.”
Even as we speak, I understand that HS2 is carrying out work at Euston station which may never be needed. It is a shambles. I am delighted to support the amendment of the noble Lord, Lord Berkeley, which would bring a degree of accountability and sanity to this chaotic project, but I will not hold my breath.
I am also very happy to support Amendment 9 in the name of the noble Lord, Lord Tunnicliffe. I am very grateful to the Woodland Trust for its very helpful briefing. It is quite intolerable that an organisation such as the Woodland Trust, custodian of our ancient woodlands, should find it so difficult to obtain information about what is happening to them. Our ancient woodlands are truly irreplaceable. Their soil structure, undisturbed for centuries, cannot possibly be recreated. The idea that they can be moved to other sites is laughable. No amount of tree planting can possibly compensate for the loss of our ancient trees. I have tabled Questions to try to discover the extent of the damage to date. I have been presented with the blandest Answers.
The amendment from the noble Lord, Lord Tunnicliffe, would ensure that HS2 has to account for the damage it does, with facts and figures, which at the moment are so hard to come by. When, in this environmentally sensitive world, it is doing so much harm to the countryside, the very least it should be expected to do is regularly report on its actions and their consequences.
I thank my noble friend for his comments. I believe I covered all the issues he raised in my earlier remarks. I have nothing further.
My Lords, I will make two brief points. I really do object to the way the noble Lord, Lord Adonis, accuses everybody who raises legitimate objections to anything as being against the project being built. Nothing could be further from the truth. My comments in particular are about environmental performance, not the project as a whole. I have never commented on the validity of the project as a whole. I wish he would stop putting everybody into that box.
I was also rather distressed by my noble friend Lord Liddle’s shock at the tone in which several noble Lords made their remarks. We need to be alert to the fact that although the Woodland Trust and other wildlife and environmental organisations are working alongside HS2 Ltd because that is the only way forward—jaw-jaw is always better than war-war—there is considerable dissatisfaction about HS2’s environmental performance in phase 1. It failed to identify a whole range of ancient woodland sites until prodded. It chose, for some inexplicable reason, to introduce a whole load of non-native species in its planting arrangements. It has continued to have impacts on temporary sites that probably could have been avoided, as the Select Committee pointed out. It has been very close to the line, and may even have gone over it, on damaging sites before getting necessary licences for things such as disturbance or destruction of bat roosts. It is not an easy relationship, but everyone in the environment movement—I am sure they would not mind me speaking on their behalf—wants to work with developers. We want a recognition from the Minister that the Department for Transport needs to indicate higher expectations of HS2 than, “It’s only a few ancient woodlands, it doesn’t really matter,” which is what I got from the Minister’s comments so far.
The Minister talked about the variety of complaints channels people can take up. Complaints channels are a bit like shutting the stable door after the horse has gone. We need more encouragement of an atmosphere of continuous open learning, acceptance of the need for improvement and to move on from that learning to implement things differently in successive phases, successive quarters or however long the reporting period might be. It was incredibly distressing, in the gap between phase 1 and phase 2a planning, to discover that the entire teams we had been working with on phase 1 had not passed that learning on to the teams planning phase 2a. We have to find a way to make sure that the operational learning that comes out of doing the job on the ground does not disappear, gets picked up and results in improved environmental performance.
I think my comments still stand. What the noble Baroness has outlined highlights the importance of a constructive and productive relationship between all environmental NGOs, including the Woodland Trust, and HS2. Building large-scale transport infrastructure is never easy. It is always a very challenging time. People with different interests will want different things and compromises have to be reached. I hope that the noble Baroness will join me, Minister Stephenson and other noble Lords when we go into environmental matters in a bit more depth after Committee stage and before Report. Perhaps I will be able to reassure noble Lords that HS2 is learning lessons and will take them forward into phase 2a.
I am grateful for the opportunity to wind up the debate on these amendments. I thank all noble Lords who have spoken. The debate has ranged widely from those who, frankly, do not trust HS2 further than they can throw it and others who say that it is doing fine on reporting.
It is certainly true that the Government are trying to produce more reports, which many noble Lords think is a good start while others are less trusting—I suppose that in the end it comes back to trust. The environmental effect of a railway could be massively mitigated if the speeds of the trains were reduced so that it could go around ancient woodlands and avoid so many deep cuttings and embankments. That is something which the French learned 30 years ago, and I suspect that it is being learned for phase 2b—certainly for the east side, maybe the west side as well—but my noble friend Lord Adonis will then complain that the trains are not going fast enough. That can be debated.
Some regular reporting is needed to provide the transparency that many noble Lords believe is necessary, me included. It needs to cover each phase, as well as the whole thing, and must cover all the things which are in my amendment and probably a few others as well. Yes, there is an independent construction commissioner, but to some extent that is shutting the stable door after the horse has bolted, although the commissioner does a really good job.
If we were to sit around the table and the Minister was prepared to do it, I am sure that some amendment or addition to the existing reporting could be achieved. However, the real question is this: is there sufficient trust among noble Lords for it to be done without some independent scrutiny, which I shall discuss when we come to Amendment 6? That is something to reflect on and it all comes back to trust. We have had a really good debate on it. The Minister said that she would be happy to talk between now and Report and we should take her up on it. I am sure that we can reach some compromise on reporting not just what has happened but what will happen in the future, or what is planned to happen, and any issues that may come alongside it.
I again thank all noble Lords who have spoken. We have heard a wide variety of opinions, which is great. In the meantime, I beg leave to withdraw the amendment.
My Lords, this has been an interesting debate. My amendment was tabled to make sure that these important issues are fully debated. I have been rewarded, in the sense that we have had a debate to which people with a great deal of knowledge and experience have contributed.
When I headed up a large publicly owned enterprise, I faced the obligation of how you pay compensation. You are a guardian of the public purse, but nevertheless you want to be fair in an exemplary way, and that implies being on the generous end of the margins that the regulations and/or the law permit. Generally speaking we got that right, and generally speaking we were able to justify the generosity of some of our settlements by the fact that they went through smoothly with little litigation and no loss of public image.
What seems to be true here is the need for consideration of the whole framework. While the position with freeholders may be satisfactory, tenants in general in this area do not get a fair deal. I hope that the Minister will be willing to go beyond saying, “Well, this is what the regulations say,” to a recognition of the widespread feeling that, one way or another, tenants are particularly hurt by the present situation.
I have had a briefing from the National Farmers’ Union, which has already been repeated, and there seems to be a particular problem with agricultural tenancies. You can see the tremendous importance of security of tenure when it comes to farming. Indeed, as far as I can see from the briefings I have received, tenures were much more secure in the past but have become less so, and the compulsory purchase regulations do not in any way reflect the real impact that compulsory purchase can have on the ability of farmers to carry on trading and, if necessary, move farms in order to continue doing so. The whole value of the investment that they make in the land does not seem to be in any way represented in the compensation.
So I am very pleased for the support for my amendment. I agree in some ways with my noble friend Lord Adonis about the need to get this right. I hope the Minister will acknowledge that there is genuine concern in this area, promise to take this issue away and perhaps, once again, have some meetings before Report to see if we can have a meeting of minds.
My Lords, this has been a very good and occasionally somewhat detailed debate; I will certainly be doing a follow-up letter when we have finished.
I want to say at the outset that while I agree that HS2 must always strive to improve, I do not recognise the claims by the noble Earl, Lord Lytton, of coercion in dealing with members of the public. If someone has evidence of coercion then we would very much like to hear about it so that we can deal with it properly, but we cannot do anything with unsubstantiated accusations and anecdotes.
I turn first to compensation for tenants, a subject covered previously at Second Reading. As I said then, most types of tenants are already provided for under the existing compensation law where they are impacted by the scheme. Where they are not provided for, the Government are able to use flexible, non-statutory arrangements to provide support. The Government have also committed to taking forward appropriate measures where the law is silent in discussions with stakeholders and residents if it is necessary to do so.
Matters of tenant compensation are complex because they depend on a person’s individual tenancy arrangements, and any compensation must balance the rights of the tenant with fairness to the taxpayer. It should, of course, be executed in a sensitive manner; I think all noble Lords would agree with that.
(5 years, 3 months ago)
Lords ChamberMy Lords, we are currently in discussions with TfL and the mayor on a further extraordinary funding agreement. My noble friend will agree that the mayor has choices to make to balance the books of TfL. When he has made those choices, they will become conditions attached to support from the UK taxpayer. My noble friend will understand that it would be inappropriate to discuss the details of ongoing discussions at this time.
I am grateful to my noble friend. With the other place in recess and government support for Transport for London running out tomorrow, this is Parliament’s last opportunity to find out what is going on. Does my noble friend agree that, if giving more powers to mayors and metro mayors is to work, both sides should moderate their language during negotiations and avoid wild accusations; that any support for Transport for London should take us beyond next May’s mayoral elections; and that any government support for Transport for London should be fair to the national taxpayer and proportionate to other parts of the country while leaving the decisions as to how it should be funded to the Mayor of London?
I agree with my noble friend that negotiations between the Government and the Mayor of London—indeed, all mayors—should be based on mutual respect and professionalism. I am pleased to report that, for example, our conversations with the mayor and his team yesterday were very cordial and constructive. The details of the current settlement are still under discussion and we are making good progress. I am pleased to confirm that the Government are committed to the principle that any government funding must be fair to UK taxpayers.
My Lords, it is obvious that TfL needs some immediate investment, along the lines of the sort that the Government have given to the train operating companies, but also needs time to work out some long-term resilience. An 18-month deal is probably best for it. One way of financing it would be to put in smart road pricing. This idea has been around for decades, but have the Government thought about it or even worked up an idea for it?
The noble Baroness will know that transport in London is devolved to the Mayor of London. Therefore, any considerations of smart road pricing would be for him to take forward.
Can my noble friend indicate whether these discussions should consider how far the overall health risk to front-line workers in mass transportation systems could be reduced by the spread of automation?
The health of our key workers and transport workers is at the forefront of everything we are doing at the moment, which is why the Government support running full services across public transport to enable social distancing. Automation, for example contactless payment, is one of the things that can reduce the spread of the virus. Automation of driverless trains, for example, would again be a matter for the mayor but we would support looking into it.
My Lords, before Covid struck, Crossrail’s full operation had been delayed by four years until 2022 and estimated costs increased by almost a third from the 2009 figure. What further delay and cost increases, due to Covid working restrictions, have been calculated and reported so far? Will all these additional costs have to be financed by TfL and the London authority?
The noble and gallant Lord will be pleased to hear that there was an update from Crossrail recently about the schedule and total costs. The project is now completely under the control of TfL. It is its responsibility to finish it. We are in discussions with TfL about further financial support for Crossrail, but we are very clear that Londoners must also foot the bill.
My Lords, does the noble Baroness not agree that the UK taxpayer would be harmed if Transport for London became dysfunctional? It would affect the London economy, as well as the health of London’s citizens. Would it not be better to take the larger interest into account and give Transport for London the help that it badly needs?
I assure the noble Lord that we want—as much as anybody else wants—London to have a safe, sustainable and reliable network. Obviously, there are issues to consider. In the short term, London’s revenues have been significantly impacted by the decline in passenger numbers. We have to make sure that, as we look to longer-term financial sustainability, not just UK taxpayers but Londoners support TfL.
The Government continue to warn the public to avoid public transport and work from home. Tube journeys, for instance, are down to about a third of their usual numbers. When the train operating companies were bailed out to the tune of £3.5 billion, similar terms to those that have been imposed on Londoners were not imposed on them. Can the Minister explain why Londoners, whether travelling by car or public transport, are subject to financial penalties not imposed elsewhere?
My Lords, train operating companies are not the same as TfL and a devolved public transport authority. Equivalent conditions or discussions cannot therefore be made because the two are not comparable. However, I assure the noble Baroness that the Government’s messaging has been to use public transport safely and has been that for quite some time.
My Lords, is it not the case that the primary responsibility for this funding crisis rests with the utterly incompetent Mayor of London and the monolithic Transport for London? Does my noble friend agree that, whatever the solution to this crisis is, it is not to clobber London’s much-beleaguered road users, many of them small businesses, with more taxes, such as increases in or extensions of the congestion charge?
The congestion charge is a matter for the mayor. He will make decisions in that regard.
Prior to the coronavirus pandemic, the Major of London had reduced the TfL operating deficit by 70% and increased its cash balance by 13%, while maintaining fares income over the past four years—a much healthier situation than that left by his predecessor. It is also worth bearing in mind, in the light of what has been said, that London’s net contribution to the Treasury last year was £38.8 billion.
I return to the question raised by noble Baroness, Lady Randerson, which did not get much of an answer. Why are the Government playing awkward over funding for publicly owned TfL? They are providing all the money private train operators in London require through 18-month funding deals with a surplus element built in and few questions asked. Meanwhile, they are seeking to force the Mayor of London to make punitive policy changes affecting Londoners—who have done and continue to do the right thing on Covid-19—as the price for their necessary further financial support. It is not sufficient to say they are different cases; they are very similar.
The noble Lord mischaracterises the discussions under way concerning the train operating companies and TfL. Various conditions apply to the new train operating company deals—ERMAs—relating to punctuality, management fees and all sorts of things. Of course, that is just one step on the way to further reform. The Government will step in and support TfL to address the decrease in revenues resulting from the pandemic. However, there are elements available to people in London and to TfL staff that are simply not available to the rest of the country. It is not up to the UK taxpayer to pay for those things.
[Inaudible]—indeed, spent a fortune on cycle lanes. This is of course very welcome, but it has without question created new risks. During recent times, I have been driving to the House and have witnessed the most extraordinarily dangerous behaviour by cyclists, veering across lines of traffic and so on. Will the Government consider assessing a policy of requiring every bicycle to have a name plate? Will they at least try to introduce some discipline and respect for the Highway Code?
I recognise that on occasion, cyclists do not pay full regard to the rules. As we encourage more people to cycle—we have put in place cycle lanes, which are very welcome—we must ensure that cyclists behave according to the written law and the spirit of it.
(5 years, 3 months ago)
Lords ChamberTo ask Her Majesty's Government what is the purpose of the review of rail schemes in Network Rail’s enhancements pipeline; whether that review includes consideration of (1) the viability, and (2) the business case, of each scheme; when the review will be completed; whether the outcome will be published; and whether the High Speed 2 project will be subject to any such review.
My Lords, our flexible pipeline approach to funding rail infrastructure enhancements means that we continually review our portfolio of projects, including the impact of Covid, to ensure that they are making the best use of taxpayers’ money. The High Speed 2 project was subject to a rigorous, independent review this year and was comprehensively reset with a revised budget and schedule.
My Lords, I am grateful to the Minister for that Answer. However, it is now six months since the coronavirus lockdown started. Surely the Government have done some work on demand for travel given the continuing trend for working at home and the likely long-term effect that this might have on rail travel, whether it is commuter services or HS2. Is it not time for the Government to produce some initial thoughts on this?
The noble Lord is quite right that there may well be long-term effects on the way that we travel in the future. However, at the moment, we are at the stage where there are many different forecasts and scenarios. As we continue through the pandemic, no single scenario is coming out as the most likely. However, we will consider the future demand requirements for rail on all the enhancement projects in the pipeline.
Lord Blencathra (Con) [V]
Will the Minister appoint me to run Network Rail? I will bring to bear exactly the same skill set: I will lie about the initial cost of projects by a factor of four, just to sucker the Government into approving them; I will deliver them five, 10 or 15 years late; I will let the costs rocket out of control and not care; and I will have a salary of half a million pounds please, which is a big cost saving. Am I suitably qualified?
I am sure that my noble friend would like me to say that I will of course appoint him to lead Network Rail, but, unfortunately, he is going to be disappointed. He slightly underplays the huge developments in recent years as we established the RNEP. It was established only in 2018 and what it tried to do—and indeed does—is to put in one place, open for scrutiny, all the projects that we are considering, whether they are at the initiation, development, design or delivery stage. We provide updates every quarter; that is good transparency and provides for good scrutiny.
The Minister’s noble friend is quite right: Network Rail’s costs are outrageous. Is she aware that, back in 1988, British Rail built a new station at Tutbury on the Derbyshire-Staffordshire border for £80,000? As recently as 1998, Railtrack built four new stations on the Robin Hood line, as well as a new platform and two overbridges, for £5.3 million. Yet Network Rail is now quoting £14 million for a single platform and £22 million for a double-platform station. This is outrageous. Will the Minister tell Network Rail so, and will she tell me how she gets on if she does?
The noble Lord is right to raise the increasing costs of transport infrastructure projects. Noble Lords may know that I have a particular interest in Hammersmith Bridge at the moment. It was built for £10 million in today’s money many, many years ago; you could not get it for that now. I take the noble Lord’s point that we absolutely have to drive down costs. That is part of what we are doing with Network Rail. It is really important that we challenge the costs and make sure that they are as low as possible. If the noble Lord has any evidence that he wants to share with my department and the rail Minister, I would be happy to pass it on.
My Lords, the industry and its suppliers want, most of all, a steady and consistent workload. Will the Minister stress to her department, and the Treasury, the need to plan ahead so that this might happen?
The noble Lord is quite right, and that is one of the reasons why we have investment periods for both rail and roads. This makes sure that the supply chain knows what is coming down the track, so to speak, and is able to respond accordingly. It also gives it certainty that if a project goes through its stages then it will actually happen. One of the biggest challenges we have had previously has been a lack of certainty that projects will happen. The noble Lord will also know that the spending review has been reduced to one year. However, for some of the long-term plans—for example, CP6 for rail—it will be a multi-year settlement.
The Government’s HS2 six-monthly report to Parliament referred to £800 million of “cost pressures”. I think that is a euphemism for extra costs which will have to be paid for out of the contingency provision, which at this rate will be used up fairly rapidly. Eight hundred million pounds over six months works out at additional costs of just under £4.5 million every day, or £3,000 every minute. We support HS2, but when do the Government intend to get a grip on its costs? Setting up a ministerial task force chaired by the Secretary of State does not sound like much of an answer to that question.
The noble Lord is wrong to extrapolate quite as far as he did. We have a relentless focus on controlling costs. He is right that there are some cost pressures from the preparatory works, but we remain confident that HS2 phase 1 can be built within the target cost of £40.3 billion.
My Lords, I welcome the improvements being made to King’s Cross Station, but does my noble friend accept that on any measure of cost-benefit analysis or impact assessment, HS3, now called Northern Powerhouse Rail, will deliver more in terms of economic benefits to the north of England and the levelling-up programme of this Government that I support? When will it be built?
The project to which my noble friend refers will be considered as part of the integrated rail plan. That will look at the delivery of high-speed rail alongside all other rail investments in the north and the Midlands.
The Minister mentioned the assessment that happened for HS2, but in Jones Hill Wood there is a protected species of bat; the HS2 organisation does not have a licence and is threatening to cut down the trees anyway. I am sure that the Minister is extremely worried about this breaking of the law. Did all the law-breaking that HS2 is currently doing come into the assessment?
I was not aware of this particular species of bat that lives in this tree. If the noble Baroness could forward information to me, I will make sure that the HS2 Minister receives it.
I refer the House to my railway interests declared in the register. Does the Minister agree that electrification has a central part to play in achieving the Government’s value-for-money and decarbonisation agendas, as does the HS2 project? When will the go-ahead be given to completing paused projects, such as the lines to Bristol and Oxford and the Midland main line? What progress is being made in identifying discrete electrification projects on relatively short stretches of main line over hills, where journey times can be saved going uphill and batteries regenerated going downhill?
To answer the first part of the noble Lord’s question, any decision on new or expanded project scopes will be made after the spending review has concluded. On decarbonisation more generally, whether it is uphill or downhill, Network Rail is developing an overarching traction decarbonisation network strategy which will provide strategic advice about which technology—electrification, battery or hydrogen—would be best suited to each section of a decarbonised rail network. This would include individual decisions taking into consideration local conditions and topography, and they would be developed as needed.
My Lords, I want to concentrate on one small scheme that after years of stop and start has reached stage 2, the development stage, of the pipeline: the reinstatement of 11 miles of track between the forlorn single platform and buffer stops at Colne and Skipton. Does this review mean that the Colne-Skipton project has gone back to stock and everything will again be thrown up in the air? When will we be told we can start again?
As the noble Lord has mentioned, that particular project is at stage 2, which is the “develop” stage; it needs to go to “design” and then to “deliver” to be built or reopened. The pipeline is always very ambitious, and it is the case that a project getting into the pipeline does not necessarily mean that it will be delivered—it will depend on the value-for-money and various other considerations over that period. I cannot comment specifically on the Colne-Skipton railway, but it will be reviewed alongside all the other projects. That does not mean that it is going backwards in any process.
My Lords, I declare my interest as a trustee of the Bat Conservation Trust and say to my noble friend on the Front Bench that if she wants more information about the barbastelle bat, I am happy to give it. Does she think, with the benefit of hindsight, that the first phase of HS2 would not have got the green light considering the huge increase in cost and environmental damage in any such review as we are now looking at? [Interruption.]
I am not sure if my noble friend’s dog was asking a question at the same time as him. The Government continually review the value-for-money case for HS2; indeed, it was reviewed fairly recently by Lord Oakervee. The Government are committed to delivering this project.
My Lords, the time allowed for this Question has elapsed.
(5 years, 3 months ago)
Lords ChamberTo ask Her Majesty’s Government what plans they have to decrease journey times for trains that use the Nottingham to Lincoln corridor to connect with other cities in the East Midlands.
My Lords, Midlands Connect is working with Network Rail to develop two line-speed improvement proposals between Lincoln and Nottingham, as part of its role in promoting strategic transport investment across the Midlands region. One proposal is to reduce journey times for passenger services between Lincoln and Newark. An investment decision will be made on the proposal following completion of its business case.
I wish to widen the scope of that. I am very pleased to hear of the improvements between Newark and Lincoln, but my Question was concerned with the overall journey times between Lincoln, Nottingham, Derby, Leicester and Birmingham. The average journey by train being at about 30 miles per hour. What further improvements do the Government envisage?
My Lords, the Government envisage a number of further improvements across the wider area that the noble Lord mentions, particularly on the Newark to Nottingham stretch. Midlands Connect and Network Rail are looking at a feasibility study which may see an improvement in times by three minutes. As the noble Lord will know, the issue there is the flat crossing at Newark, where it crosses the east coast main line. More broadly, the Government are doing an awful lot of work in the Midlands as they develop HS2.
My Lords, I thank the Minister for the interesting answers that she gave the noble Lord, Lord Bradshaw. Do the Government intend that the upgrades in timing, which will need infrastructure improvements between Birmingham, Nottingham, Newark and the flat junction for freight, and beyond, will be part of the integrated rail plan recently announced by the Government? They would bring local and regional benefits much sooner than the construction of HS2 East, which apparently has now been paused.
The integrated rail plan announced in February 2020 will look at the delivery of high-speed rail alongside all the other rail enhancements across the Midlands, including the Midlands rail hub. Network Rail is already developing work in this area, including connectivity improvements between Birmingham and Nottingham.
My Lords, I declare my interest as co-chair of the Midlands Engine All-Party Parliamentary Group. Rail is playing a vital role in levelling up the Midlands and capitalising regional developments. A dedicated ministerial champion to drive this key programme forward within government would be hugely beneficial. Is that something that the Government will consider?
The Government take their relationship with Midlands Engine and Midlands Connect extremely seriously, and I have had a number of meetings with them. On transport for the east Midlands, the Transport Secretary, Grant Shapps, announced on 3 September a new collaborative agreement between local leaders in the east Midlands and the department. We have created two new posts within the department specifically for the east Midlands to provide a more influential role when it comes to rail service enhancement decisions.
My Lords, 79% of workers in the East Midlands travel to work by car, and only 1% by rail. Contrast this with London where 27% go by car and 46% by rail and Tube. London shows that that revolution is achievable. Does the Minister accept that to cope with road congestion, pollution, climate change and ill health the Government must prioritise investment now for much-improved commuter train services in the East Midlands? It needs a lot more than a three-minute time improvement; it needs a massive change of approach from the Government.
The Government are committed to making improvements to East Midlands commuter travel. The noble Baroness is absolutely right: if we are to get people out of their cars, we need them on the trains. Of course one of our priorities is improving the safety of staff and passengers on trains. We have extra staff to manage flows, extra signage and extra cleaning. I hope that she will agree that if people want to travel to work in the East Midlands by train, they should do so.
First, what is government spending on transport overall in the East Midlands region per head of population, compared with the national average on transport per head of population? Secondly, what specific progress has been made over the last five months towards reopening the line from Leicester to Burton to passengers, following the government announcement last May of a fund for feasibility studies on the reopening of lines?
The last figures that I have for investment in transport are £268 per head in the East Midlands compared to £474 per head across England, so there is much more to be done. The steps that the Department for Transport has taken recently will aim to level up the East Midlands in the amount of investment in infrastructure. The line between Leicester and Burton—I believe it is known as the Ivanhoe line—is part of the Restoring Your Railway programme, so the reintroduction of passenger services is being considered. Development of these plans has been funded, and the Department for Transport and Network Rail are working on it with the promoters of the scheme to provide the guidance and support that they need to get a strategic outline business case.
My Lords, ensuring better train services is key to achieving the levelling-up agenda across the whole country. It is paramount for jobs and growth that passengers and businesses using train networks have good, reliable and fast services. Also, part of tackling climate change is encouraging greater use of public transport, given that the road networks linking cities in the area are congested and polluted. What assessment have the Government taken on increasing train timetable options for passengers from Lincoln, with a view to ensuring greater usage?
I believe I have been able to explain that between Lincoln and Nottingham an awful lot of work is going on—to improve not only the time taken to travel between those two places but the frequency of the trains. For example, I reassure the noble Lord that, in addition to the measures I have already spoken about, there are plans to see two new services in each direction from May 2021, and then three more services after that each way from 2022.
My Lords, my noble friend Lord Bradshaw pointed out that on the wider regional network the average speed is 30 mph, which is not competitive for freight and businesses, and not good for the environment. The Minister pointed out that there will be a three-minute improvement, but can we come back to speed? In five years’ time, when the arrangements that she mentioned will have been made, what will be the average speed on this line per journey? If she does not have those figures to hand, could she please write to me with them?
The noble Lord will not be surprised to know that I do not have the average speed figures to hand, but one look at that line tells you that there are quite a number of stations, and they bring down the overall average speed. For example, on the Newark to Nottingham section, the new signalling system will allow speeds of up to 90 mph. It is key to get the trains moving much faster between the stations, although I accept that the average speed will be significantly below that.
My Lords, all supplementary questions have been asked.
(5 years, 3 months ago)
Lords Chamber(5 years, 4 months ago)
Lords ChamberTo ask Her Majesty’s Government what additional support they plan to give to the transport industry to enable that industry to address the impact of the Covid-19 pandemic.
My Lords, the pandemic has had a significant impact on the transport industry. The Government recognise the key role that transport plays in supporting economic activity and maintaining social ties, which is why they have stepped in to support the industry where they can, to ensure that public transport is there for those who need it.
Road traffic is back to pre-pandemic levels of congestion, while trains and buses are running almost empty. The Government are reorganising the rail industry but so far have provided only emergency funding for buses. Does the Minister accept that the commercial model for the bus industry was already failing before Covid-19? The Government now have the opportunity to create a green bus revolution. Will they reform subsidies to encourage environmental efficiency and give more powers to local authorities?
The noble Baroness may be interested to know that bus demand is currently running at about 55% of normal, which is encouraging, but she is quite right, and will know that we had always planned to do a bus strategy this year. Of course, we are starting from a very different place from where we had hoped to be, but it will include an awful lot of recovery work, as she so rightly outlined, and set out how we will get 4,000 zero-emission buses on our roads.
Is the Minister aware that the coach industry feels particularly aggrieved, having been excluded from the industry-specific grants that have so benefited buses and trains? Is she also aware that long-standing family companies such as Travel De Courcey, based in Coventry, have already gone to the wall because of the economic situation? Can she offer any comfort to these vital parts of our transport industry, as far as the future is concerned?
I am aware of the very difficult situation that the coach industry finds itself in. It is a very diverse sector with, as the noble Lord points out, a large number of family-run businesses. About 80% of revenue in the coach sector comes from tourism, and we are working very hard with DCMS to ensure that where tourism—particularly domestic tourism—can take place, it does. Much of the remaining 20% is home-to-school transport, and the Government have made available £40 million for the first half of this current term, for local authorities to procure extra vehicles.
My Lords, further to the Question of the noble Baroness, Lady Randerson, in 10 days’ time, the emergency funding that the Government agreed with Transport for London to keep the buses and Tubes running runs out. Can the Minister reassure the House that there will be some agreement thereafter? If the Mayor of London has asked for £5 billion, how will any future burden be shared between the national taxpayer, travellers and London’s council tax payers?
My noble friend mentions the figure of £5 billion: well, the Mayor of London would say that, wouldn’t he? As part of the first bailout, the Government commissioned a government-led review of TfL’s finances and I am afraid that it did not make happy reading, even prior to the pandemic. Multi-year fare freezes are indeed a great vote winner, but eventually one has to make very difficult choices, so the Government will be ensuring that the Mayor of London makes those choices in order to get TfL back on to a financially sustainable footing so that we can protect the interests of the UK taxpayer.
My Lords, to judge by both personal observation and hearsay, not much effort is being made by train operators to collect revenue due to them. Will the Government make sure that they understand that it is a duty to collect fares from passengers?
I thank the noble Lord for his question. This is the first time I have been made aware that some train operating companies are not collecting the amount of revenue that they should. To my mind, having also travelled on trains recently, they seem to be functioning very well and nothing much has changed in respect of revenue collection.
My Lords, it is an honour to speak after the noble Lord, Lord Bradshaw, who was my constituent for 14 years; in spite of being a Liberal Democrat, he was extremely well behaved. The Minister will know that transport policy encompasses such innovations as e-scooters. Will she look at the myriad regulations in different boroughs across London, which are holding back the rollout of public e-scooters? Will she also look at legalising e-scooters for private use and removing pointless regulations such as requiring a driving licence in order to use any scooter?
My Lords, I again remind my noble friend and the whole House that riding an e-scooter off private land is currently illegal unless it is part of a trial. However, the Government have rolled out these trials across the country, the entire purpose of which is to gather evidence, so that we can look at the regulations to which my noble friend refers and make appropriate changes in order to benefit from such developments in micro-mobility.
My Lords, in the wake of the pandemic, the Government have promised new structures and relationships with rail and other providers based on value for money and traveller satisfaction, but will the Minister ensure that the needs of long-suffering, isolated rural communities are also taken into account?
The Government have huge ambitions for the rail industry throughout the country, in both urban and more rural areas. As the noble Lord probably knows, we have entered into emergency measures agreements with the train operating companies to make sure that they can continue to provide those services. With regard to cut-off places— places that no longer have trains—the Restoring Your Railway Fund will support the reopening of railways where possible.
May I return to the question asked by my noble friend Lord Snape? The Minister said that the 20% of the sector involved in school transport was getting support, but what about the other 80%? What additional support will be offered to that 80% of the coach industry, and with what objectives in mind? It includes small operators which, as small businesses, form the backbone of the sector and are really struggling. The Government have yet to tell us what they intend to do to support the great bulk of the coach industry.
The Government have already put in an unprecedented package of financial support, which has recently been extended through the winter economic plan to make sure that support is provided not only to coach companies but to all sorts of companies across the country. As I said to the noble Lord, Lord Snape, we are working with DCMS to try to open up tourism wherever possible, but coach companies are being innovative and getting business where they can. I recently visited York Pullman, in York, and was heartened to see that it is looking to find more innovative ways back into work. I know it is difficult, and we continue to engage with the coach sector as the pandemic progresses.
My Lords, in March the Government announced a fund to improve electric vehicle infrastructure, particularly charging. Does the Minister agree that if post-Covid recovery is to be largely car-based, it is essential to bring forward that fund early so that more people will buy electric vehicles? Can she update the House as to when this money will become available?
The Government do not want the recovery to be mostly car-based. We are keen to encourage passengers back on to buses and trains, and we are clear that people can use public transport and should do so safely. The noble Baroness mentioned electric vehicles. Of course, the Government have a huge commitment to expanding the number of charge points and supporting consumers when they buy their electric vehicles.
My Lords, if we are to become the Saudi Arabia of wind power by 2030, why are we not going to become the world leader in electric cars, looking to the future rather than the past when the Government spend their money?
I reassure the noble Lord that we are already a world leader in the manufacture and design of electric cars and their rollout across the country. The other important element to bear in mind is the Government’s commitment to connected and autonomous vehicles, which, of course, go hand in hand with the development of electric cars.
My Lords, I declare an interest as co-chair of the All-Party Group on General Aviation. General aviation is of course the bedrock of aviation in this country—where young pilots are trained for the future—and has taken a particular hit, along with the rest of aviation, during this Covid-19 crisis. Will the Government consider looking at VAT in respect of general aviation? Will the Minister perhaps consult with the Treasury on this issue?
The Government recognise the important role that general aviation plays in providing the grass-roots element from which so many who go on to the commercial sector come. I reassure my noble friend that the Government are focusing carefully on aviation recovery work, which will include general aviation. It will look at regional connectivity, economic growth, decarbonisation and, perhaps most importantly in the field of general aviation, workforce and skills.
My Lords, the Minister will be aware that many maritime businesses have worked incredibly hard to keep supply chains open and goods flowing during the Covid crisis. However, this has resulted in businesses exhausting their cash reserves, leaving very little funding for them to begin the vital work of decarbonising the maritime industry. Will the Minister confirm that the Government will provide the necessary funding, requested by the maritime industry in recent meetings, to kickstart the urgent process of decarbonisation?
The noble Lord will know that the Government published their Maritime 2050 strategy a little while back. Of course, our commitment to decarbonisation remains extremely strong. There are a number of conversations going on at the moment about maritime decarbonisation, and some ideas have been put forward for the spending review.
My Lords, all supplementary questions have been asked and we now move on to the second Oral Question.
(5 years, 4 months ago)
Lords ChamberTo ask Her Majesty’s Government what assessment they have made of the impact of quarantine provisions to address the COVID-19 pandemic on civil aviation; and what measures they plan to take to support the aviation sector.
My Lords, we introduced the right measures at the right time based on scientific evidence. This included early implementation of enhanced monitoring at the UK border to identify symptomatic travellers from high-risk areas and the introduction of international travel corridors in July. The Government have provided an unprecedented package of financial assistance measures that the aviation sector can draw on, which we keep under review.
My Lords, the aviation sector has taken an enormous hit, and there has been a huge drop of confidence in consumer travel. There have been endless discussions between the aviation sector and the Government on introducing testing. Will my noble friend repeat the announcement that the Treasury Chief Secretary made at party conference virtually today that we will introduce testing in very short order, and that there will be one test on landing—on arrival—at an airport and a follow-up test five days later? Nothing short of that will actually boost confidence and allow airlines to really take off again this autumn.
I reassure my noble friend that the Government are taking this issue extremely seriously. We are looking at all potential measures to reduce the length of the quarantine period. A test taken after an appropriate isolation period may be a suitable solution, and at the moment we are actively working through the practicalities and the technicalities to make sure that the solution works.
My Lords, will the Minister confirm that 30 other countries have introduced effective testing at airports, while our Government have struggled and failed? Taken together with thousands of elderly people dying needlessly in care homes and the massive failure of test and trace, does this not point to serial incompetence by this Government?
I hate to disappoint the noble Lord, but various countries have taken different approaches to testing on arrival. Indeed, many countries do no testing at all on arrival from other countries. However, the Government look very carefully at what other countries are doing; where it is appropriate and where there is evidence to support the measures that they are taking, we look carefully at introducing them here.
My Lords, airports are vital local employers and under severe pressure. Unlike airlines, they cannot just shut down services and have to remain operational for safety reasons, but they have very few paying customers and commercial flights. I ask the Minister again: will the Government just get on with it? Will they give them tailored support by cancelling business rates, which cost even small airports millions of pounds a year?
My Lords, the Chancellor recently announced the winter economic plan, which included extensions or adjustments to support for the sector which is already in place, so the Job Support Scheme comes online on 1 November and there is extension to the loan schemes. There are plenty of ways that airports can get support, and in the very final instance they could look at the Birch process but, of course, in those circumstances all other potential sources of finance must have been exhausted.
My Lords, I draw attention to my entry in the register. Bearing in mind the need to keep the pool of pilots currently being made redundant available for the future upturn, and bearing in mind the need for their qualifications to remain current, could the Minister tell me whether discussions her department has been having with interested parties are likely to include a sympathetic view of the need for flexibility in ensuring that measures are put in place to maintain the qualifications of pilots, including the possibility of retraining grants?
My Lords, in conjunction with my department, the CAA has issued a number of regulatory exemptions to help support pilots through the Covid-19 period. These exemptions provide an extension to the standard validity period of licences and ratings, but subject to some conditions. Alongside this, of course, we are looking at the recovery phase for the sector and are doing a lot of work in this area. One of the workstreams for the recovery phase is skills and workforce, and we will bear in mind what my noble friend had to say.
I now call the noble and right reverend Lord, Lord Eames. Lord Eames? Lord Eames, for the third time? I think I will move on, in the interests of time. I call the noble Lord, Lord Rosser.
Key asks from the airline industry are the implementation of testing for passengers arriving from high-risk destinations—not least New York—greater transparency on the Government’s methodology for determining travel corridors and restrictions, a temporary 12-month waiver of APD and the regionalisation of travel corridors, as I am sure the Minister knows. How many of those do the Government intend to agree to?
First, I wish the noble Lord a happy birthday. The Government are taking all those key asks that he refers to extremely seriously. As he will know, very early in the process—in May—we set up the aviation restart and recovery expert steering group, which gave us an enormous insight into the amount of support and the sorts of things we could do for aviation. That has now moved on to become a recovery-only sort of group, looking at longer-term policy thinking, including regional connectivity, economic growth, skills and workforce and decarbonisation. We are well aware of all the issues that he raises, and we are working with the industry to do what we can.
I now call the noble Lord, Lord McNally. There is no Lord McNally, so I call the noble Baroness, Lady Tonge.
My Lords, the Minister will perhaps know that the only good thing to have come out of the Covid-19 pandemic is a welcome reduction in air traffic noise and air pollution around Heathrow Airport. Can she assure us that, whatever the outcome of the appeal by Heathrow to the Supreme Court, if work is ever resumed on a third runway the original air pollution, noise and traffic conditions will still apply?
My Lords, the construction of a third runway at Heathrow Airport is a private enterprise and all the current planning restrictions would continue to apply.
My Lords, in a reply to me on 2 July at col. 1283, my noble friend told me that the Government were working very closely with UK-based aviation providers and others to establish international standards for getting our planes back into the air. Precisely what discussions have taken place and what has been achieved in practical terms on the ground and in the air in the past three months? Secondly, have the Government made any estimate of the number of jobs at risk in aviation itself, airports, aerospace, their suppliers and the communities around them if flights are not enabled to return to some sort of normality very soon?
Turning to my noble friend’s second point first, there will inevitably be redundancies within the aviation sector. That is of course hugely regrettable and, while public health remains our top priority, we are committed to enabling a sustainable and responsible return to international travel as soon as we possibly can. In terms of our work with other countries and the international aviation community, our conversations with others have fed into the guidance that we have issued for aviation for journey planning, social distancing, cleaning, face coverings, PPE—all those sorts of requirements. The UK is also playing a leading role at ICAO in the ICAO Aviation Recovery Taskforce.
My Lords, given that the pandemic is not going away and airlines will therefore be in trouble, they will probably require bailouts. Will the Government agree with the recommendation by the Committee on Climate Change and commit to a net zero goal for UK aviation as part of the forthcoming aviation consultation and strategy, as well as the principle that the aviation sector should not receive bailouts without setting individual net zero targets and careful plans as to how they are to achieve that?
My Lords, the Government are doing an enormous amount of work with the aviation sector. We have set up the Jet Zero Council, which is working towards making sure that aviation is able to play its part to ensure that we get to net zero by 2050. As the noble Baroness pointed out, some companies may in future approach the Government for specific help. As I noted earlier, there is the Birch process to go through, but that can be used only if all other sources have been exhausted and there may well indeed be certain conditions attached.
I am pleased to tell my noble friend that I have been through four airports over the past couple of weeks and it has all gone remarkably smoothly, except with some slight, inevitable confusion with the passenger locator form—a very useful tool but in its infancy. It is a compulsory requirement, as I understand it, but you are not necessarily required to present it at the arrival airport. Can my noble friend tell me what percentage of passengers are required to show their passenger locator form, and can she give the number of passengers who have recently shown positive Covid tests?
I am very pleased that my noble friend is doing his part to keep the aviation industry afloat. The passenger locator form is a requirement for every person arriving in this country. On 9 September, the Prime Minister announced that there were plans to simplify, shorten and streamline the whole process. Border Force does spot checks on arrival to make sure that people have filled out the passenger locator form, and they are liable for fines if they have not.
My Lords, the time allowed for this Question has elapsed; all supplementary questions have been asked.
(5 years, 4 months ago)
Lords ChamberTo ask Her Majesty’s Government what assessment they have made of the arrangements in place to compensate customers whose holidays are cancelled.
My Lords, the Government recognise the challenge consumers and businesses are experiencing regarding refunds for cancelled holidays and flights. We are clear that where a flight or holiday has been cancelled, consumers have a legal right to a refund, which must be paid. The Civil Aviation Authority launched a review into this issue, and as a consequence most airlines are now paying refunds effectively.
I am grateful to my noble friend for that reply. She will be aware that tens of thousands of passengers have complained to the CAA about inexcusable delays in getting compensation for cancelled flights, and that the Consumers’ Association has criticised the CAA, saying:
“It is obvious that the CAA does not have the right tools to take effective action against airlines that show disregard towards passengers and the law”.
Will my noble friend therefore bring in much-needed reforms to enable the regulator to take swift and effective action to protect consumers when the law is broken?
The CAA has a range of powers available to it to take a proportional and pragmatic approach to enforcement. Indeed, a number of conversations have taken place, in particular bilateral engagement between the CAA and individual airlines to encourage them to refund more quickly. The pandemic has highlighted a number of challenges and my department is keen to work with the regulator, industry and consumer groups to learn lessons and make changes in the future.
My Lords, has my noble friend observed that two holiday companies, loveholidays and On the Beach, have resigned from ABTA to avoid paying full refunds on cancellations due to Covid-19? Will she look carefully at the regulations and in particular at the alleged loophole that suggests that if the Foreign Office advises against travel and yet the company itself keeps a flight and the accommodation open, a full refund is not payable?
We keep under review the issue of Foreign Office advice and the implications for cancellation and subsequent refund. Travel is no longer the almost risk-free experience that it used to be, and I encourage all consumers when they book travel to look very carefully at whether the travel business is a member of ABTA or ATOL, and what would happen in each circumstance were their journey to be curtailed.
My Lords, while every effort should be made to compensate those whose holidays are cancelled because of the Covid pandemic, does the Minister agree that the main focus of the Government and the country should be on defeating this killer disease? With that in mind, will the Minister consider restricting all but necessary travel abroad until the virus is under control?
The Government have very solid arrangements for international travel, which is why we introduced international travel corridors to enable some travellers to go abroad, whether for business or social reasons, without needing to quarantine on the way home. Travel advice and the exemptions list can change at very short notice, and consumers must be aware of that.
My Lords, on 28 July, at col. 114 of Hansard, the Minister advised those travelling that they could mitigate their risks with travel insurance and that they should check it out, and that the Government were in ongoing discussions with the insurance industry about pandemic-related insurance cover. Today, the Which? website identifies only one travel insurance option offering cover for the cancellation of a holiday because of Covid-19 restrictions, and then only in very limited circumstances. What progress have the Government made with the insurance industry, so that the Minister’s advice in that regard is of any value?
As the noble Lord will be well aware, the insurance industry is a commercial enterprise and will offer travel insurance to consumers where it is able to do so at a reasonable cost and undertaking a reasonable amount of risk. Of course, conversations with the travel industry and the travel insurance industry are ongoing.
My Lords, some airlines have taken a very short-sighted approach by seeking to avoid repayments, but it is a sign that they are under severe financial pressure. I do not excuse their actions at all, but it is a symptom of a problem. The Government have provided tailored financial support to help the hospitality industry. When will they provide a package suitable for the travel and transport industries?
All travel companies are facing operational, resource and liquidity issues at the moment, and this is creating the backlog of refunds. The pandemic has created a very difficult situation for the travel industry and beyond, but the Government have already provided support to aviation and beyond. The Bank of England’s Covid Corporate Financing Facility has been used by airlines, which have drawn down £1.8 billion.
My Lords, I declare an interest, having had a holiday cancelled and not refunded. Does my noble friend agree that all customers across the sector should have been refunded by now and that it should not be they who are effectively making loans to solvent travel companies, many of which are simultaneously benefiting from the government support measures she has just outlined?
My Lords, I declare an interest, having had two holidays cancelled, both of which were refunded. The situation is incredibly difficult and we need to look closely at how we are going to get refunds back to consumers, but most businesses in the travel industry are doing their very best to refund.
I understand that the last time an airline operating in the UK faced a fine for breaking consumer law on refunds, delays or cancellations was 17 years ago. In the same period, as I understand it, the Civil Aviation Authority has applied for an enforcement order only once. In the light of that, is the Minister confident that all airlines have done everything they could to comply with statutory consumer rights this year, and does she think that they feel under sufficient pressure to ensure that they comply with statutory consumer rights?
I believe that airlines are feeling under great pressure from all sides at this moment. Of course, the CAA works very closely with the airline industry. Its review, which it launched at the end of July, looked in great detail at the refund policies and practices of each airline. There has been a significant improvement since that review. The CAA is taking a balanced and proportionate approach to enforcement for the time being.
My Lords, passenger compensation is an important area for consideration. So, equally, is the UK not becoming marooned. Given suggestions that easyJet is being challenged, what concern is there that the UK’s targeted commercial markets globally might not be well served, which, of course, could also impact socially? What plans do the Government have to ensure that that will not happen?
My Lords, my department is incredibly concerned about domestic air connectivity and international air travel. Of course, we want people to be able to travel, but it must be safe. That is why the international travel corridors exist and why, over the longer term, we will be looking at an aviation recovery programme that will address our connectivity more broadly.
My Lords, is there any estimate of how many people have been compensated by the insurance companies?
I do not have an estimate of how many people have been compensated by insurance companies, but I can tell noble Lords that the Competition and Markets Authority is another way that consumers can report businesses which are acting unfairly, and it has received tens of thousands of complaints. For example, action arising from those complaints resulted in TUI agreeing to refund all customers who were owed a refund by the end of September.
My Lords, I declare an interest, having had a holiday cancelled. Does my noble friend agree that while the ATOL scheme is excellent, waiting 90 days to receive repayment is far too long, and will she join me in condemning British Airways for its appalling, obstructive attitude towards making repayments?
The ATOL scheme is very valuable and exists as a safety net to enable people to get their money back if they cannot do so from other sources. While it may take 90 days, consumers can feel reassured that they will get their money back eventually.
I, too, have had a holiday cancelled, and I have been from one organisation to another. The credit card was supposed to cover it; it did not, and nor did the travel insurance. ATOL has not replied, nor ABTA. Cannot we have simple, clear guidance to all those claiming so that they know exactly where to go and can save an awful lot of trouble and harassment?
The issue for consumers is that different bookings using different travel agents will be supported by different mechanisms, so there cannot be a one-size-fits-all solution. However, there are a number of places that consumers can go to for advice. For example, back in April, the Competition and Markets Authority put out guidance on cancellations and refunds. It was also clear that the airlines had to state clearly in what timeframes those refunds would be provided.
My Lords, all supplementary questions have been asked and we now move to the next Question.