HS2 Safeguarding Directions

Lord McLoughlin Excerpts

Thursday 26th June 2014 Written Statements

[The Secretary of State for Transport (Mr Patrick McLoughlin)]

I can today inform the House that under the Town and Country Planning (Development Management Procedure) (England) Order 2010, I have issued updated and revised safeguarding directions to local planning authorities along the London to west midlands HS2 route. These adjust the previous directions issued in October 2013 to more closely match the description of the scheme set out in the HS2 hybrid Bill and accompanying environmental statement currently before the House.

Safeguarding directions aim to ensure that land which has been earmarked for major infrastructure projects is protected from conflicting developments before construction starts. They also enable many of those who own property in the safeguarded area to serve a blight notice and request that the Government purchase their property under the terms of the compensation code.

As the Government are no longer planning on building a link between HS1 and HS2 at the London end of the railway, the relevant land has also been removed from safeguarding.

HS2 Ltd is writing to all known property and landowners within the relevant areas to notify them of the revised directions, and their effect.

Safeguarding directions also trigger statutory blight procedures under the Town and Country Planning Act 1990. Owner-occupiers of properties within the safeguarded area who wish to move may apply to sell their property to the Government by serving a blight notice. If they meet the relevant criteria they can expect to receive the “un-blighted” open market value of their home, a home loss payment of 10% of the value of their home—up to £47,000—and reasonable moving costs such as legal fees, and stamp duty on a replacement property.

As I announced on 9 April, Official Report, column 19WS, the HS2 express purchase scheme now applies in the surface safeguarded area. The scheme provides eligible property owners with the same compensation entitlement, whether or not their property is required for the scheme. Where an area of land has been removed from the safeguarded area by these new safeguarding directions, the express purchase scheme will remain available to owners of properties in that area—the extended home owner protection zone—for five years. This does not apply to properties along the formerly proposed link between HS1 and HS2, which will no longer be close to the high-speed railway. Full information and maps describing the new directions, as well as guidance and application forms for express purchase and other property compensation schemes, are available at, www.hs2.org.uk or by phoning the HS2 Ltd public enquiries line on 020 7944 4908.

London and Continental Railways

Lord McLoughlin Excerpts

Thursday 19th June 2014 Written Statements

[The Secretary of State for Transport (Mr Patrick McLoughlin)]

I can today inform the House that the Department for Transport has transferred its 40% stake in Eurostar (held through London and Continental Railways) to Her Majesty’s Treasury.



This is to address any perceived or actual conflict of interests resulting from the interaction between the Government’s stake in Eurostar and the east coast franchise competition, and in particular any perception of bias arising out of the Secretary of State’s shareholding in London and Continental Railways.

Rail Franchising (Inter City West Coast)

Lord McLoughlin Excerpts

Thursday 19th June 2014 Written Statements

[The Secretary of State for Transport (Mr Patrick McLoughlin)]

Today I have announced the successful conclusion of negotiations for a new directly awarded franchise agreement with West Coast Trains Ltd (Virgin). This deal will see Virgin continue to run passenger rail services on the Inter City West Coast franchise for a period of two years and nine months until the start of the services on the next competed franchise, which is expected in April 2017. The additional benefits secured in this direct award are so great that I have also agreed to terminate the current franchise early so that services can begin on the new terms on 22 June this year.

The new franchise will see significant improvements for passengers during the term of the contract, with benefits totalling around £35 million. This will include more capacity with 5,500 extra standard-class seats per day from a reconfiguration of first-class seating; improvements to on-board wi-fi and the introduction of free wi-fi at all of Virgin’s stations. The operator will also support the Government’s commitment to get more people into work by creating jobs for young and unemployed people, including apprenticeship and traineeship schemes. Investments at stations will see improvements in the quality of waiting rooms, seats and shelters and more than 200 new automatic ticket gates will be installed across the franchise.

New passenger satisfaction, punctuality and cleanliness targets will be introduced on the franchise. These tough new targets will help make sure that Virgin continues to provide improving standards for its 30 million annual passengers. In addition the company will step up its engagement with Network Rail, communities and stakeholders so that all the users of the franchise can have a say in how it can continue to improve services. This includes working with Network Rail to try to improve journey times between London and Scotland, especially through supporting the remodelling of Carstairs junction, a significant bottleneck on the network.

Virgin will also seek permission from the ORR to extend services from London to include some new services between the capital and Shrewsbury and, separately, Blackpool from December 2014. The franchise will also see an improved position for the taxpayer, with increased premiums due to be returned to the Government under this contract.

This agreement is a ringing endorsement of what the rail franchising programme can achieve; working in partnership with the rail industry to deliver better services for passengers and improved returns for Government.

Thameslink Southern Great Northern (Rail Franchising)

Lord McLoughlin Excerpts

Thursday 12th June 2014 Written Statements

[The Secretary of State for Transport (Mr Patrick McLoughlin)]

On 23 May 2014, my Department announced its intention to award the Thameslink Southern Great Northern (TSGN) franchise to Govia Thameslink Railway Ltd, pending the successful completion of a standstill period. I am happy to confirm to the House that this standstill period has ended and we completed the contract after the markets closed 11 June. This means that Govia can begin the mobilisation process that will mean the new franchise will begin in September this year.

The TSGN franchise is the largest ever let in terms of passenger numbers and Govia will transform services across the south-east of England during the seven-year term of the franchise. A key aspect of the franchise will be delivering this Government’s £6.5 billion Thameslink programme—a major programme of infrastructure work that is helping create 8,000 jobs and will allow 24 trains per hour to travel in each direction from Blackfriars to St Pancras. New tunnels will link Peterborough and Cambridge to the existing Thameslink route, providing easy access across London via St Pancras to Gatwick and Brighton.

Passengers are at the heart of this franchise and will benefit from improved customer service and nearly 1,400 new electric carriages across the network. These include the new class 700 trains secured by the Government as part of the Thameslink programme, but also two new fleets of trains being procured entirely by Govia. These will provide 50% more capacity and 10,000 extra seats every week day into central London during the morning peak by the end of 2018, and delivering quicker, cleaner and more reliable journeys for passengers and businesses.

This franchise shows the benefits that Government working in partnership with the private sector can bring for the railways through franchising. It is a fantastic deal for the rail industry, passengers and taxpayers.

Oral Answers to Questions

Lord McLoughlin Excerpts

Thursday 8th May 2014 Commons Chamber

[Mark Menzies (Fylde) (Con)]

5. What plans he has to introduce new rolling stock on the railways.

[The Secretary of State for Transport (Mr Patrick McLoughlin)]

In the coming years, passengers will see significant increases in the amount of rolling stock on the railways, thanks to the Government’s investment. More than 3,100 new carriages will be in service by the end of 2019, including new rolling stock serving the Thameslink commuter routes north and south of London, new Crossrail trains from Reading through London to Essex and Kent, and new intercity express programme trains serving the east coast, Wales and the south-west.

[Andrew Griffiths]

I congratulate the Secretary of State on the biggest investment in our railways since the Victorian era, but may I beg him to spend just a little of that money on some new rolling stock for the Derby to Crewe line? People are currently unable to get on to trains to travel to Uttoxeter race course before the race meetings start, and we are seeing crowds struggling to get on to trains after the meetings have finished. Just a little of that money would be welcome in Uttoxeter.

[Mr McLoughlin]

I am grateful to my hon. Friend for mentioning a line that goes through my constituency. As one who has regularly caught the train from Crewe to Derby, I understand the point that he is making. It is, of course, up to East Midlands Trains to look at the way in which the line is serviced, but I hope that we shall see an upgrade in the not-too-distant future.

[Mark Menzies]

What plans has the Secretary of State to modernise rolling stock in the north-west, especially on the South Fylde line, in conjunction with station modernisation?

[Mr McLoughlin]

One question asked of me quite regularly is what has been the biggest change since I was first appointed to the Department for Transport 25 years ago, and I have to say to my hon. Friend that one of the biggest changes is the demand for more and more rail services. I am more than happy to meet him to discuss the particular services in his constituency and how we can best meet the increasing demand we are seeing right across the country for railway services.

[Mrs Louise Ellman (Liverpool, Riverside) (Lab/Co-op)]

Investment in rail is welcome, but what new steps will the Secretary of State take to ensure that when individual lines are electrified, appropriate rolling stock is available immediately?

[Mr McLoughlin]

The Chairman of the Select Committee on Transport makes an important point about the commitment the Government are making to electrification. I will not remind her of the figures on electrification over the 13 years that her party were in government—it was some 10 miles, I think. We are planning to do 880 miles in this programme of rail electrification and modernisation, and she is absolutely right to say that we have got to make sure we get the rolling stock in line and in order as well.

[Phil Wilson (Sedgefield) (Lab)]

Does the Secretary of State agree that there is great potential for the rolling stock for High Speed 2 to be built by Hitachi in my constituency in the north-east of the England, creating hundreds of direct jobs and thousands in the supply chain, and is he aware that Hitachi built the original bullet train almost 50 years ago?

[Mr McLoughlin]

I am indeed aware of what Hitachi is doing in the north-east and I very much welcome the Hitachi foreign investment into the north-east and its decision to base its world headquarters here in London. It is a great sign of confidence in the way that the Government are attracting inward investment into this country. Of course the hon. Gentleman is right about the investment opportunities that HS2 offers, not just in terms of rolling stock but right across the whole railway piece. There will of course be a competition and I have no doubt that it will be matched by Bombardier and other companies.

[Mr Simon Burns (Chelmsford) (Con)]

Does my right hon. Friend accept that although deep cleaning and refurbishment of rolling stock is important, there is a pressing need for new rolling stock on the commuter line from Chelmsford to Liverpool Street, and can he tell the House whether having new rolling stock could be a condition of the long-term franchise from 2016?

[Mr McLoughlin]

I hear the representations my right hon. Friend makes to me now, and has made to me on many occasions privately, about the desire for new rolling stock on that line. It will be something I will want to consider when we look at the franchising agreements we will put forward.

[Mary Creagh (Wakefield) (Lab)]

The £5 billion project to electrify the Great Western main line has been hit by flooding, bats on bridges and lengthy road closures which have crippled businesses in Gloucestershire and Wiltshire. What guarantees can the Secretary of State offer the House that the electrification work will be completed by 2017 when those new intercity express trains will be ready to run?

[Mr McLoughlin]

The points the hon. Lady makes about forward orders and the fact that that new rolling stock is due to come on board by 2017 with the electrification of that line are very important. I have every confidence that Network Rail will rise to the challenge to deliver what it has set out to deliver in the rail investment strategy. Quite often attacks are made on Network Rail, but I think we can all stand back and think of the remarkable way in which it managed to re-establish the line through Dawlish and the work it did working almost 24/7.

[Mary Creagh]

I thank the Secretary of State for that reply, but it was his Department’s mismanagement of the Thameslink rolling stock contract that meant it took two full years to close the deal with Siemens. That project will finish three years late in 2018 and our colleagues on the Public Accounts Committee said last October:

“We are sceptical that the programme will be delivered by 2018 given the delays in awarding the contract for new trains”.

On Thameslink we could have new track but no trains, and on the Great Western line we could have new trains but no track to run them on. Does the Secretary of State agree with me that this is no way to run a railway?

[Mr McLoughlin]

I simply say to the hon. Lady that this Government have announced the biggest investment programme in the railway industry that we have seen in this country and I am very proud of that. Of course there will always be problems. I think the Thameslink programme was actually Thameslink 2000 so it has overrun—that is certainly true—but at the end of the day we are going to get a far, far better commuter service for all the people in the areas served by that line.

[Sir Bob Russell (Colchester) (LD)]

Successive Governments have short-changed East Anglia. As somebody who uses the rail service from Colchester to London Liverpool Street, I ask the Secretary of State, on behalf of my commuters, to include Greater Anglia in his roll-call of those companies that will get new rolling stock.

[Mr McLoughlin]

I hear the hon. Gentleman’s representations. The simple fact is that we are seeing massive investment in rolling stock, and there are demands for even greater such investment, but that has to be balanced with the investment that we are seeing on the tracks. As I have said, we are embarking on a new round of spending on the railways, with some £38.5 billion by Network Rail plus the investment in rolling stock as well.

[Mrs Sharon Hodgson (Washington and Sunderland West) (Lab)]

4. What steps he is taking to ensure adequate provision of rolling stock in the north of England.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

10. What steps he is taking to ensure adequate provision of rolling stock in the north of England.

[The Secretary of State for Transport (Mr Patrick McLoughlin)]

The Department has recently agreed terms with Northern Rail for the introduction of electric trains between Liverpool and Manchester. Northern Rail will be able to transfer additional diesel carriages on to trains operating on other busy routes in order to relieve the crowding further. TransPennine Express has seen capacity increase with the introduction of the new Class 350 trains.

[Mrs Hodgson]

The Secretary of State will be aware that the rolling stock on Tyne and Wear metro is undergoing refurbishment, but that is little consolation to the residents of Washington who do not even have a station. Nexus has recently outlined plans for three stations in Washington as part of an extension to the metro network, and the North East local enterprise partnership has agreed to undertake the business case. Will the Secretary of State commit his officials to working closely with both parties to ensure that the business case is as strong and compelling as it can be?

[Mr McLoughlin]

I can give the hon. Lady that assurance. The Newcastle metro has been running for some time and is now undergoing a desperately needed upgrade. There is no doubt in my mind that the original metro regenerated areas that had been in serious decline. We are always looking at ways in which we can best expand those services. I am more than happy for those conversations to take place.

[Debbie Abrahams]

The daily commute of many of my Saddleworth constituents is akin to that of sardines travelling in a can. On top of that, we now know that some of Northern Rail’s diesel stock may be transferred to TransPennine Express to supplement the gap left by the TPE stock transfer to the Chiltern Railways. What guarantee will the Secretary of State give my constituents that that transfer will not happen?

[Mr McLoughlin]

What we have set out to do is match, where we possibly can, the growing passenger capacity with the availability of the railway network. As I have pointed out, a huge amount of new rolling stock is coming on line in the next few years. I therefore hope that we will be able to relieve some of the initial problems that the hon. Lady has mentioned.

[Philip Davies (Shipley) (Con)]

I hope the Secretary of State will agree that Northern Rail has some of the worst rolling stock in the country on its lines, and I hope that that is something he will address. I hope he will also agree that the Airedale and Wharfedale lines are some of the most congested on the railway network and that they need additional capacity. What is he doing to provide better and longer trains on those lines?

[Mr McLoughlin]

I think I have just been setting out in the answers we have given the huge amount of investment that we are making in the new rolling stock that are coming on to our railways. I hope my hon. Friend’s frustration will not continue in the longer term.

[Julie Hilling (Bolton West) (Lab)]

Given the loss of nine trains already to the south of England, what steps is the Secretary of State taking to ensure that more trains cannot be taken from TransPennine Express or Northern Rail during the direct award period before the franchise is re-let in 2016?

[Mr McLoughlin]

I understand very much the case that the hon. Lady makes for the services in Bolton, and I am keen to see those services improved and increased. As a result of the huge amount of money we are spending on investment in the railway sector, her constituents will get a far better railway in the future than they had under the previous Government.

[Mr Philip Hollobone (Kettering) (Con)]

6. If the Parliamentary Under-Secretary of State for Transport will visit the sites of the proposed junction 10A on the A14 and the proposed Weekley-Warkton bypass, and meet representatives of Kettering borough council to discuss those proposals on 23 May 2014. [R]

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[Sir Alan Beith (Berwick-upon-Tweed) (LD)]

7. What progress his Department has made on its study of proposals to dual the remaining single carriageway sections of the A1.

[The Secretary of State for Transport (Mr Patrick McLoughlin)]

The A1 north of Newcastle study is one of six studies to identify and fund solutions to a number of notorious and long-standing hot spots on the road network. The next working group takes place on 21 May to discuss the evidence review stage, after which the study will consider the potential investment options before making its recommendations later this year.

[Sir Alan Beith]

Since the Chief Secretary to the Treasury made a firm commitment a year ago and the Transport Secretary has given the scheme his strong personal support, can he get a move on? At the moment, with all these studies, it feels a bit like being stuck in slow-moving traffic on the A1.

[Mr McLoughlin]

I think we are making progress. The right hon. Gentleman mentioned in his question the fact that the Chief Secretary is involved. If the Chief Secretary and the Transport Secretary are of one mind on this, I very much hope that we will be able to make some progress.

[Mr Nicholas Brown (Newcastle upon Tyne East) (Lab)]

What accounts for the delay between the tentative announcement of yet another study and the setting up of the study? What is left to be studied of this much-studied question? Will the Transport Secretary confirm to the House that the study is but a prelude to the commencement of the actual work?

[Mr McLoughlin]

I think I will look at the wording of that when I see it in Hansard. This is an important road and a lot of work has already gone on to widen the A1, as well as a lot of work that is being undertaken at present. We are now talking about the area north of Newcastle and it is important that when the works are being carried out, measures are put in place to deal with the environmental consequences and the objections that people might raise.

[Mr Christopher Chope (Christchurch) (Con)]

8. What steps his Department is taking to improve journey times and passenger capacity on the Waterloo to Weymouth rail line.

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[Karen Lumley (Redditch) (Con)]

9. What plans he has to set up an HS2 skills academy.

[The Secretary of State for Transport (Mr Patrick McLoughlin)]

In January, the Government announced its intention to set up a new high speed rail college to boost the development of railway and engineering skills across the UK. In March, the Department for Business, Innovation and Skills launched a consultation to identify the location for the new main site. Responses are currently being assessed and we intend to make an announcement of the preferred site later this year. The college is expected to open in 2017.

[Karen Lumley]

Does the Secretary of State agree with me, though, that to show the country that HS2 is also about rebalancing the economy, it is vital that the academy is built either in the midlands—please—or even further north?

[Mr McLoughlin]

We saw at yesterday’s Prime Minister’s Question Time a number of bids, not least from my hon. Friend the Member for Milton Keynes South (Iain Stewart), who is not allowed to ask me a question today on this issue. So the bids are coming from far and wide, and I am very pleased about that.

[Mr Jim Cunningham (Coventry South) (Lab)]

12. May we make a bid for the new skills academy to be located in the west midlands, preferably in the Coventry area? The Government promised to publish a jobs and skills strategy for high-speed rail last July. It is almost a year and nothing has been produced. Can the Secretary of State give us a date when it will be published?

[Mr McLoughlin]

Let me deal with whether the academy should be in Coventry in the west midlands. Of course, the west midlands is a very large area. From Coventry to Wolverhampton to Birmingham, all those areas are making bids for the college and I am very pleased about that. [Interruption.] The hon. Member for Stoke-on-Trent South (Robert Flello) is saying that Stoke-on-Trent is in the west midlands. It is in the west midlands government area, but I am talking about the old west midlands metropolitan areas, which he may sort of remember.

[Mr Marcus Jones (Nuneaton) (Con)]

The skills academy is vital so that we ensure that HS2 is built by skilled British workers. Notwithstanding the comments of my hon. Friend the Member for Redditch (Karen Lumley) and the hon. Member for Coventry South (Mr Cunningham), where better to build the skills academy in the geographical heart of the country, at the centre of this project, than in Nuneaton?

[Mr McLoughlin]

I had a very interesting visit with my hon. Friend when I went to Nuneaton station, when he made the case for a number of extra services that he would like to see calling there. I understand his bid for the academy. I am slightly worried as I am not sure what we will talk about on HS2 when we have made a decision on the location of the academy

[Stephen Timms (East Ham) (Lab)]

One thing I think we will talk about is the review of connections between HS2 and the continent, which the Secretary of State announced almost two months ago. When does he envisage that review being complete?

[Mr McLoughlin]

I hope to be able to update the House further on those proposals later this year and on the work that the Department is doing, which is at the moment being led by Sir David Higgins.

[Andrew Bridgen (North West Leicestershire) (Con)]

Is the Secretary of State aware, though, that if the station goes ahead in the east midlands at Toton, businesses will relocate from the centre of Derby and Nottingham around the Toton area, and also a new conurbation will be built, which will effectively join up Derby and Nottingham and denude both their city centres?

[Mr McLoughlin]

I am not sure that I agree entirely with my hon. Friend. We need to ensure that development takes place in the whole area around where the new stations are going to be, and that there are infrastructure interconnections with those areas. But it is fair to say that, on the second part of the route—from Birmingham to Manchester and from Birmingham to Leeds—we are out to consultation, and those consultations are being considered at the moment.

[Ms Gisela Stuart (Birmingham, Edgbaston) (Lab)]

I agree that the HS2 skills academy should be located at the centre of the project, which is right on Curzon street, on the east side of Birmingham. Is there any more information that the Secretary of State would require to convince him that that is the right location?

[Mr McLoughlin]

A number of people are making bids and the hon. Lady is but one of them. She is absolutely right about the importance of Curzon street in this project, which I think will be of great benefit to Birmingham. I look forward to discussing these proposals further with Sir Albert Bore, who is leader of Birmingham city council.

[Mike Kane (Wythenshawe and Sale East) (Lab)]

HS2 is obviously critical to my constituency’s development and also to the national interest. As the newest Member in this place—just—may I ask the Secretary of State to explain to me, in order to assist my development, where the Prime Minister and his AWOL colleagues were for those vital votes in the House last week?

[Mr McLoughlin]

Once the hon. Gentleman is in the House—it does not matter how long he has been here—he has the equal authority of any other Member. He is trying to play on the fact that he is the newest Member of the House, but he is treated the same way as any other Member as regards questions. He did remind me that the proposed route for HS2 would go directly under his house, so he does have a direct interest. There has never been any doubt about the Prime Minister’s commitment to this project. Indeed, his name is on the Bill. The only person who had doubts about the project was the shadow Chancellor, and I was very glad to see that he voted for the Bill last week.

[Dr Thérèse Coffey (Suffolk Coastal) (Con)]

11. What assessment he has made of the level of availability of spare parts for the rail network.

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

14. What financial assistance he is providing to local authorities for the repair of potholes.

[The Secretary of State for Transport (Mr Patrick McLoughlin)]

In the 2014 Budget, the Government announced a £200 million pothole fund for the financial year 2014-15. Some £168 million is being made available to councils in England, including up to £10 million for London. This is enough to fix over 3 million potholes. The fund is a competition, and bidding guidance was published on 24 April detailing how local authorities can submit their bids to the Department for Transport by 22 May. This is in addition to the £4.7 billion that we are providing for local road maintenance in this Parliament.

[Rehman Chishti]

Medway council has filled nearly 4,000 potholes in just over 10 months, so it will welcome the Secretary of State’s announcement. However, Medway has also been affected by the emergence of sinkholes, including one at Rainham Mark grammar school. What are the Government doing to address the emergence of sinkholes across the country?

[Mr McLoughlin]

I am aware that a number of sinkholes appeared across the country during this year’s severe winter weather, including those that my hon. Friend has mentioned. The Government have been working, and will continue to work, with the British Geological Survey on sinkholes. It is important that any lessons learnt are shared with local authorities and other transport operators to ensure that our infrastructure has greater resilience against future severe weather events.

[Barry Gardiner (Brent North) (Lab)]

Residents in the Queensbury, Northwick Park and Preston wards in my constituency would be very grateful if part of the remaining £50 million from the fund could make its way to the potholes in their wards. They would be even more pleased if those roads with extensive potholes could have a complete surface repair, because they are fed up with seeing potholes repaired one year and then having to be re-repaired the next winter. The money should be spent on solving the problem comprehensively, not addressing it in a piecemeal fashion.

[Mr McLoughlin]

I agree entirely. Some councils have shown excellent ways of doing that through a holistic approach, and I commend them for that. I was in Northampton recently to see what the local council has done there. It has taken on board the point the hon. Gentleman makes. I hope that other authorities will do likewise.

[Mr Rob Wilson (Reading East) (Con)]

15. What recent assessment he has made of progress on Crossrail.

[The Secretary of State for Transport (Mr Patrick McLoughlin)]

The Crossrail project is progressing well. Over 20 miles of tunnels under London have now been completed, which is 78% of all the tunnelling. While focus is being maintained on delivering the infrastructure, work is now well under way on the operational phases, making Crossrail a fully operational railway. Crossrail is on course to be delivered by the scheduled opening date of December 2018 for the central section, with full services commencing in 2019.

[Mr Wilson]

I am grateful to the Government for recently correcting the terrible error of the previous Government, who would have stopped Crossrail at Maidenhead, rather than Reading. The local enterprise partnership and local businesses support my view that unlocking Crossrail’s full potential will require some semi-fast services, rather than the slow metro service currently proposed from Reading into London. Will my right hon. Friend support Thames Valley Berkshire LEP, local businesses and me by doing everything he can to deliver the economic boost that the right Crossrail will bring to Reading and the Thames valley region?

[Mr McLoughlin]

I am grateful to my hon. Friend for his comments on this massive project, which is important both for London and for the outlying areas. I will be more than happy to discuss it with him as we develop the programme and the timetables.

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

T1. If he will make a statement on his departmental responsibilities.

[The Secretary of State for Transport (Mr Patrick McLoughlin)]

The House will recall that five weeks ago the HGV user levy came into force. I am pleased to say that in that short period the levy has generated £7.6 million in revenue from overseas hauliers and achieved a mainland payment compliance rate of 96%. Thanks to the actions of this Government, foreign hauliers are at last paying for their use of British roads.

[Rehman Chishti]

Driver distraction is a major cause of death and serious injury on our roads, and it has been the focus of a leading campaign by the charity Brake. What are the Government doing to work with such organisations to tackle driver distraction? By way of a digression, I was given the “parliamentarian of the year” award by Brake for campaigning on road safety.

[Mr McLoughlin]

I have known of Brake’s work for many years, as one of its founding members was the relative of a victim who died in my constituency. I think that the whole question of driver distraction is important. I am still amazed by the number of people who use mobile phones while driving. In August 2013 the Government increased the penalty for using a mobile phone while driving from £60 to £100. I will look at the matter and review it in due course.

[Mr Speaker]

The hon. Member for Gillingham and Rainham (Rehman Chishti) deserves the hearty congratulations of the House, and I feel sure that the award is prominently displayed in his home.

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[Sheila Gilmore (Edinburgh East) (Lab)]

T2. East Coast’s current operator, Directly Operated Railways, was barred from bidding for the east coast franchise. The Secretary of State presumably welcomes the bid from Eurostar-Keolis, which is largely owned by French state railways. Is it not time to change policy and to allow Directly Operated Railways to bid for franchises?

[Mr McLoughlin]

There are a number of reasons why it would not be right to allow that to happen, not least because it would be funded directly through the taxpayer. That would put Directly Operated Railways at a great disadvantage compared with other companies in the private sector. The east coast and west coast franchises cannot be compared as they are very different, not least because, at the moment, East Coast runs 155 services a day compared with the 324 services on the west coast line.

[Fiona Bruce (Congleton) (Con)]

T4. The proposed Congleton link road will help to boost the economy across the east Cheshire region, relieving not only local town congestion, but that along the M6, both of which are frequently described as chronic. It will also improve access to and from Crewe station. Will the Minister consider making Government funding available to fund this vital link road project?

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[Jim Fitzpatrick (Poplar and Limehouse) (Lab)]

Earlier this morning in Westminster, the Freight Transport Association launched its excellent 2014 logistics report. One policy area success that has eluded successive Governments is in the promotion of coastal shipping. What are the Government doing in this regard?

[Mr McLoughlin]

I have not yet had time to read the report as it was published only this morning. The way in which coastal shipping works and links with the rail network is very important, and we need to develop it even further. I had a very interesting meeting yesterday with one operator who is drawing directly from ports into Drax power station.

[Mel Stride (Central Devon) (Con)]

T7. My right hon. Friend will know that many of the 8,000 miles of roads in Devon are blighted by potholes. Will he therefore join me in congratulating Devon county council on its online pothole advisory system and the efficient way in which it is tackling the problem? May I also press him to consider very seriously Devon county council’s bid for some of the additional funds that were announced in the Budget?

[Mr McLoughlin]

Indeed. Before the year-end, we allocated extra money to local authorities that they were encouraged to spend on potholes and to show how they had spent it. That will have a bearing on how we allocate the future fund for local authorities that the Chancellor made available in the Budget.

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[Sir Peter Luff (Mid Worcestershire) (Con)]

T8. The railway line from my constituency to London is probably the worst in the country for regularity, speed and reliability. May I urge the Secretary of State to persuade Network Rail and First Great Western to take this Cinderella line to the ball at last?

[Mr McLoughlin]

If my hon. Friend was here at the start of questions, he will have heard a number of Members call for better services in their areas. I think the line that he mentions does get substantial investment as a result of the intercity express programme, and I therefore hope he will get the better services he wants.

[Stephen Timms (East Ham) (Lab)]

Further to his earlier answer, will the Secretary of State update us on links from HS2 to the continent before or after the summer recess?

[Mr McLoughlin]

It will be either one of those.

[Jeremy Lefroy (Stafford) (Con)]

T10. Does my right hon. Friend agree that the welcome news about the heavy goods vehicle levy shows that this was a long overdue reform that will create a level playing field for UK hauliers?

[Mr McLoughlin]

The levy has made a remarkable difference. It sends a positive message to foreign hauliers that if they come to this country they have to make a contribution to the cost of maintaining the road network. I am very pleased that we have been able to do this. It has been warmly welcomed by the freight industry in this country.

The Leader of the House was asked—

Business of the House (No. 1)

Lord McLoughlin Excerpts

Tuesday 29th April 2014 Commons Chamber

[The Secretary of State for Transport (Mr Patrick McLoughlin)]

I beg to move,

That the Speaker shall put the Questions necessary to dispose of proceedings on the Motions in the name of Secretary Patrick McLoughlin relating to the High Speed Rail (London - West Midlands) Bill and (notwithstanding the provisions of paragraph (1) of Standing Order No. 16) the Motion in the name of Mr Andrew Lansley relating to Positions for which additional salaries are payable for the purposes of section 4A(2) of the Parliamentary Standards Act 2009 not later than four hours after the commencement of proceedings on the Motion for this Order; such Questions shall include the Questions on any Amendments selected by the Speaker which may then be moved; the Questions may be put after the moment of interruption; and Standing Order No. 41A (Deferred divisions) shall not apply.

This is the second day of debate relating to the High Speed Rail (London - West Midlands) Bill and has been arranged in response to calls for more time to consider this important Bill. It has meant that we were able to spend all yesterday considering the Bill itself and we now turn to these important motions.

The business of the House motion allows the House to take the four motions together for debate. All of them relate to the High Speed Rail (London - West Midlands) Bill that was given a Second Reading yesterday, in particular the establishment and working of the Select Committee for the Bill, so it seems entirely sensible to take them all together. Overall, the House will have had more than 10 hours to debate the Second Reading and the motions, compared with fewer than seven hours for the same debates on Crossrail and HS1. I commend the motion to the House.

Contingencies Fund Advance

Lord McLoughlin Excerpts

Tuesday 29th April 2014 Written Statements

[The Secretary of State for Transport (Mr Patrick McLoughlin)]

I hereby give notice of the Department for Transports’ intention to seek an advance from the Contingencies Fund. The Department requires an advance to meet an urgent cash requirement pending parliamentary approval of the main estimate 2014-15.

It was announced on 23 April that Network Rail borrowing directly from Government rather than issuing debt in its own name would provide better value for money for the taxpayer. The Department for Transport has included in total £6,500,000,000 in the main estimate 2014-15 for this change in borrowing arrangements—this amount includes £550,000,000 which will be taken as a Contingency Fund advance.

Parliamentary approval for capital of £550,000,000 for this new expenditure will be sought in the main estimate 2014-15 for the Department for Transport. Pending that approval, urgent expenditure estimated at £550,000,000 will be met by repayable cash advances from the Contingencies Fund.

The advance will be repaid immediately following Royal Assent of the Supply and Appropriation Bill in July.

High Speed Rail (London – West Midlands) Bill

Lord McLoughlin Excerpts

Monday 28th April 2014 Commons Chamber

[The Secretary of State for Transport (Mr Patrick McLoughlin)]

I beg to move, That the Bill be now read a Second time.

It is 120 years since we last built a main line railway north of London. It is even longer since, in 1833, this House voted to start what is known as the west coast main line. The line was not meant to be a national route; it became one almost by accident. It was a railway built with twists and turns to placate landowners, for slow steam trains pulling open-top carriages. It is worth recalling that in 1832 Parliament rejected the initial Bill because some people objected, arguing that canals were all we would ever need for long-distance travel. Today, we ask far too much of the line. If we were talking about roads, it would be as if traffic still had to go up Watling street, as if the M1 and M6 had never been built, and we tried to solve our transport needs by just patching up old roads—a roundabout here, a bridge there—as if incremental change could make all the difference. Well, we tried that: we spent £9 billion upgrading the west coast main line a decade ago, and most of that work did not even get south of Rugby. Cities and towns in the north deserve better. Scotland deserves better. Britain deserves better.

That is why I stand at the Dispatch Box today to support High Speed 2, a new north-south railway line. I do so with much humility and not a little trepidation, but also with confidence, because although I wholly understand the concerns of hon. Members whose constituents are affected by the route, I also know that this is a decision we cannot duck. We have waited long enough. The west coast main line can take no more; it is increasingly full. More than that, London and the south-east are also increasingly full, caught in a cycle of rising house prices, some of the most expensive commercial rents in the world and transport congestion, while cities in the north want to grow. It is time to help to break that cycle—time to connect great cities such as Birmingham, Manchester, Sheffield, Leeds and Liverpool.

[Mr Jim Cunningham (Coventry South) (Lab)]

The right hon. Gentleman has said in the past that Coventry would benefit, but can he tell me how? If we are not careful, there could be economic problems with investment in Coventry.

[Mr McLoughlin]

If I may, I will come in a little while to how I think places such as Coventry, Northampton, Rugby and elsewhere will benefit from the building of HS2. It is not just a matter of time; it is also a matter of the capacity available to the United Kingdom in its railway network. However, I will come to that.

[Paul Farrelly (Newcastle-under-Lyme) (Lab)]

rose—

[Mr McLoughlin]

I am happy to give way to colleagues, but I am aware of the number of people who want to speak in this debate, so I will be a bit cautious.

[Paul Farrelly]

I thank the Secretary of State for giving way. Clearly everywhere in Britain deserves better, but there are fears, as he will know, that great cities such as Stoke-on-Trent and Coventry will simply be bypassed. What meetings has he had, in particular with Stoke-on-Trent city council, in the past three months about either a stop on HS2 at Stoke, or a spur from HS2 along the route through Stoke station?

[Mr McLoughlin]

It is important to note that the Bill before us deals with the route from London to the west midlands, which does not go as far north as the hon. Gentleman describes. That route—basically, from the end of the line we are discussing today to Manchester and Leeds—is still out to consultation. Sir David Higgins did a report, “HS2 Plus”, which I very much welcomed. I accepted part of it—removing the HS1-HS2 link—but there are other parts, on which I am asking for urgent work to be done, that are not contained in the Bill before the House today.

[Robert Flello (Stoke-on-Trent South) (Lab)]

On a point of order, Mr Speaker. May I just inform the House that Stoke-on-Trent is in the west midlands?

[Mr Speaker]

That is not a matter for the Chair, but a matter of intense interest, not least to the hon. Gentleman.

[Mr McLoughlin]

As a former Staffordshire county councillor—indeed, I was a member of Staffordshire county council for seven years—I do not need any reminding of where Stoke-on-Trent is, although it is true that Stoke-on-Trent is now a unitary authority and not controlled by that fantastic, first-class Conservative county council of Staffordshire.

[Joan Walley (Stoke-on-Trent North) (Lab)]

I am grateful for the opportunity to raise the matter of Stoke-on-Trent and other issues, but is not the real concern about the Bill that there has not been a proper, rigorous and strategic environmental assessment? In other words, whether or not the Y route beyond Lichfield goes via Stoke-on-Trent or elsewhere, there has not been an opportunity to properly assess HS2 phases 1 and 2 in the round.

[Mr McLoughlin]

One of the questions is “Where is the biggest capacity problem?” and, whether I like it or not, the biggest capacity problem is on the southern part of the route—the route coming into London—but I well understand the concerns of hon. Members representing Stoke-on-Trent and other areas regarding the importance of getting the route right as far as they are concerned. That is why we are in the process of consultation and I am happy to meet and hear representations from those areas, although I am mindful of the huge number of consultations.

[Mr John Redwood (Wokingham) (Con)]

Does the Secretary of State agree that we are talking today about a very big item of public spending, not an investment, because the business case makes it very clear that none of the debt can be repaid out of fare revenue and much of the interest in the early years will also fall on the taxpayer?

[Mr McLoughlin]

I believe there is a good cost-benefit ratio. We estimate the cost-benefit ratio to be 2.4 and it is worth pointing out—I will come on to this in my speech—that the initial cost-benefit ratio for the Jubilee line was less than 1% and if that had not been built I do not think we would have seen the subsequent development in Canary Wharf. However, I do not want to be tempted too much away from the very detailed contextual part of my speech, which I have worked out.

[Mr Frank Field (Birkenhead) (Lab)]

Following on from that point, given that the Government have failed to meet their targets in reducing the structural deficit, more than 60% of the cuts wait for the next Parliament, and therefore there will be a real shortage of capital does the Secretary of State really think that even if this line is built to Birmingham, it will go beyond? Secondly, given the scarcity of capital, would not the north gain more from a major link between Liverpool and Hull, rather than worrying about coming into London?

[Mr McLoughlin]

There is a slight problem in giving way even to colleagues and Opposition Members whom I respect greatly, because they keep asking me about further parts of my speech. If I can make a little more progress, I will be coming on to that point, but I will just point out to the right hon. Gentleman that, as he well knows, at the moment there is a huge amount of investment going into places like the northern hub, which will have very significant benefits for Liverpool, Leeds, Manchester and Hull in getting better east-west connections across the country and not just between the north and south parts of the country.

[Mr Bob Ainsworth (Coventry North East) (Lab)]

I agree with the change of emphasis the Secretary of State has brought, from one of speed to one of addressing the capacity issue, which is clear and apparent to anybody who wants to see it, and I believe Coventry potentially will benefit from the proximity of the nearest non-London station, but can he ensure there is proper connectivity not just to Birmingham city centre, because the west midlands is far more than just Birmingham?

--- Later in debate ---

[Mr McLoughlin]

Indeed it is, and in fairness to the right hon. Gentleman, we might consider the words of the Secretary of State in launching this project when he was last a member of the Cabinet. It is fair to say that the noble Lord Adonis did say that

“over the next 20 to 30 years the UK will require a step-change in transport capacity”

and connectivity, both to promote and to respond to long-term economic growth. That was a statement made by the last Labour Secretary of State, so to say the scheme has always only ever been about speed is to misrepresent what the last Government intended and also what this Government intended.

[Several hon. Members]

rose—

[Mr McLoughlin]

I will give way to my hon. Friend the Member for Colne Valley (Jason McCartney), and then I really must make some progress.

[Jason McCartney (Colne Valley) (Con)]

I welcome the fact that the Secretary of State has mentioned the northern hub rail investment, because many people against this project ask “Why not spend the money elsewhere?” I hope he will be emphasising the fact that this investment is as well as, not either/or. We are getting electrification of the trans-Pennine route, and I have just this morning been through Wakefield Westgate, a new £9 million station. This is about spending money elsewhere as well as, not instead of, on this project.

[Mr McLoughlin]

My hon. Friend is right. Over the next five years Network Rail will spend £38.5 billion on the existing railway network. That is separate from the money being earmarked for HS2.

[Several hon. Members]

rose—

[Mr McLoughlin]

I will give way one final time in this part of my speech, to the hon. Member for Wirral South (Alison McGovern).

[Alison McGovern (Wirral South) (Lab)]

I thank the Secretary of State for giving way. When does he expect to respond to the phase 2 consultation?

[Mr McLoughlin]

If the hon. Lady will be patient, I shall deal with that point a little later in my speech.

I was telling the House that it is time to connect great cities such as Birmingham, Manchester, Sheffield and Leeds. It is time for better links between north and south and between east and west, and time to connect to world markets to make the most of their skills and talents. It is time for HS2; time for a new north-south railway line.

Today, we can get a high-speed train from London to Lille but not to Leeds, and from London to Brussels but not to Birmingham. That has to change, but of course our investment plans must also run much further. More than £38 billion is being invested in the existing rail network between 2014 and 2019, including about £16 billion of Government support as part of our plans to invest £73 billion in all forms of transport between 2015 and 2021. We are trebling the budget for our major road schemes to £15 billion between 2015 and 2021; we are investing £14 billion in local transport schemes between 2015 and 2020; and next year, the Davies commission will propose options on future airport capacity. We need to do all this because if we are to support our economy, we need our infrastructure to work. Two years after the Jubilee line reached Canary Wharf in 1999, 27,000 people were employed in that area. By 2012, the figure was over 100,000.

We begin, it is true, with the advantage of our Victorian inheritance, but others are catching up. At the start of 2007, China did not have a single high-speed railway line; today, it has more than 6,000 miles in service, and by 2015, that will be 11,000 miles. France and Germany have been reaping the benefits of a high-speed rail network for decades, while we have just 67 miles from London to Kent and the channel tunnel.

Of course we have a good existing network, but we need to improve it, and upgrading Britain’s rail infrastructure is a key part of this Government’s long-term economic plan. In the south and south-west of Britain, the great western line is receiving more investment over the next five years than any other route. This will bring huge benefits to people working in that region.

[Andrew Bridgen (North West Leicestershire) (Con)]

The Secretary of State has said that HS2 is not about speed but about capacity. Given that only 8% of the population regularly use trains, what percentage of the population does he think will actually use HS2 and who does he think will benefit from it?

[Mr McLoughlin]

I was happy to give way to my hon. Friend, but I am mindful of what he said about me yesterday on Radio 4, bits of which I agree with and bits of which I am slightly worried about. He said:

“Patrick McLoughlin is an excellent Cabinet Minister”—

I agree with him on that—

“and a former Chief Whip of the Conservative party. Indeed, if you had a difficult policy you wanted to push through Parliament, Patrick is your man. I would maintain that if the PM wanted the Herod Bill, Patrick would be the man to see that through Parliament.”

I am not quite sure whether to take that last bit as a compliment. When I talk about the need for capacity, I am talking about the need to free up capacity on other lines as well.

One of the great successes in the rail industry in this country is the massive growth in the railways, and I shall say more about that later. If we look at the tables, we see that 20 years ago, rail passenger numbers in this country were constant. Over the past 20 years, however, the numbers have risen from 750 million to 1.5 billion passenger journeys a year. The numbers continue to grow, and we need to address that fact. That is why we are right to do what we are doing with HS2.

[Guy Opperman (Hexham) (Con)]

All the northern councils and chambers of commerce back HS2 unequivocally as a source of growth and extra capacity. Is it not the case that all major infrastructure projects are objected to at the time of their creation, and that 50 years on, the objectors fully support what took place?

[Mr McLoughlin]

I understand and respect those people who object. If some new piece of infrastructure is going to have an impact on their lives, there will be a fear of what might come. As we saw with HS1, there was a fear of what might come, but once it had been built, people said that it represented a vast overall improvement to this country’s rail network.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

Does the Secretary of State agree that those of us who object to HS2 are not flat earthers? We know that our rail infrastructure must be renewed and that there are real problems with capacity and much else, but this proposal is deeply flawed, and has never been scrutinised properly or planned properly. That is what we worry about, because so many of the independent inquiries find on the negative, not on the positive, about this HS2.

[Mr McLoughlin]

In the last Parliament, the hon. Gentleman was an absolute supporter of the Government of the day. Today, we hear him attack the scheme so violently, but he did not do that when he was sitting on the Government Benches behind that Government when they proposed it in the first instance. I am happy to accept the support he gave it in the first instance.

[Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

The right hon. Gentleman has said that we have only 67 miles of high-speed rail in England, linking to two independent countries, France and Belgium. Does that not add to the argument that if Scotland were independent, there would be a greater push for rail north, as two sovereign Governments would be working on this rather than one?

[Mr McLoughlin]

I was expecting an intervention from the Scottish National party, but I am not quite sure which sea the hon. Gentleman is thinking of going under, how long the tunnel would be and which continent he is thinking of connecting up to separately with an independent part of Scotland. What I say to him is that I believe high-speed rail is very important for the whole country—it will be important for Scotland, too—and Scotland, part of the United Kingdom, will be much better off.

[Several hon. Members]

rose—

[Mr McLoughlin]

I give way to the former Foreign Secretary.

[Mr Jack Straw (Blackburn) (Lab)]

May I offer the right hon. Gentleman, without any caveats, my full support and say to him that most colleagues representing constituencies in the north actively back this scheme, for the very reasons he has spelt out? Does he also accept that those who represent some home counties through which this route is going of course have legitimate constituency concerns but that, for example, the Chiltern railway line has benefited twice over from investment—from the last phase of investment by British Rail and from Evergreen—and that the M40 was far more disruptive to people living in the Chilterns but nobody would now suggest it should be abandoned or greened over?

[Mr McLoughlin]

I am grateful to the right hon. Gentleman and I completely agree with him. One of this morning’s papers, I believe it was The Daily Telegraph, said that this Bill will certainly have been scrutinised more than any major infrastructure project we have dealt with, across the whole piece.

[Michael Fabricant (Lichfield) (Con)]

rose—

[Mr McLoughlin]

I will give way to my hon. Friend but then I will want to make some progress.

[Michael Fabricant]

I hope my right hon. Friend can assure me that he has not got anything in his folder about what I might have said yesterday. He spoke earlier about the importance of global trade and of HS2. Does he not accept that it is extraordinary that with this design, HS2, which I do not disagree with in principle, does not have a link with the channel ports, with HS1 or even with whichever airport will be chosen by his own Department to have the third runway?

[Mr McLoughlin]

As for notes on what my hon. Friend might have said yesterday, I do not think I have enough pages in the Department for what he might have tweeted out yesterday. I will address why I think this is the right scheme a little later, because I want also to talk about the links between—

[Mr William Cash (Stone) (Con)]

rose—

[Mr McLoughlin]

I will give way for the last time and then I will want to make some progress.

[Mr Cash]

Phase 2, which affects my constituents directly, will have compensation arrangements which will clearly be based on the proposals being put forward with regard to phase 1—London to Birmingham. Given that, and given the scale of this operation, does my right hon. Friend accept that the only proper and reasonable basis for properly compensating the people concerned is if they get full value in relation to the losses they incur and not just the kind of provision currently on offer?

[Mr McLoughlin]

I want to talk about the compensation package a little later and indeed about the fact that I announced a new compensation package before the House rose for Easter, but that matter is out for consultation.

Before I took those interventions, I was talking about the improvements in the great western main line. We will also see improvement in east-west links, with faster electric trains between Liverpool, Manchester, Leeds and Newcastle and a reopened railway between Oxford and Bedford. In London, we will see the Crossrail and Thameslink upgrades, which between them will cost £21 billion—about the same amount that is being spent on the first phase of High Speed 2. It is the scale of spending on London that has brought about amazing transformations at places such as St Pancras and King’s Cross stations. In the 20 years that I have been using those stations, they have become places that people wish to visit, destinations in their own right and places of which we can be proud. However, that necessary investment in London should not come at the expense of the rest of the country. Demand for travel is growing everywhere.

Twice as many people travel by train every day as they did 20 years ago. More people drive and fly, too, and that is because our horizons broaden in a better-connected world. Digital links do not replace travel; they fuel it. Smartphones and broadband are not an alternative to things such as HS2; they are part of the same growing links between people and businesses, and that pressure is felt acutely on our north-south rail corridors.

[Frank Dobson (Holborn and St Pancras) (Lab)]

I very much welcome the Secretary of State’s praise for the two brilliant stations in my constituency, one of which was started and finished under the Labour Government and the other of which was started under the Labour Government. Will he confirm that according to the documents of HS2 and his Department, Euston will be able to provide extra capacity only if there is investment in Crossrail 2, at a cost of an extra £15 billion to £20 billion?

[Mr McLoughlin]

The documents about Crossrail 2 have been put out by the Mayor of London. We shall see the completion of Crossrail 1 in 2018, which will make a massive difference to London overall. I know that the right hon. Gentleman feels very strongly about this matter and is proud of the stations in his constituency, but the truth is that when I first came to this House, we regarded Euston as the best station of the three. It is now way behind the other two stations. HS2 gives us a once in a lifetime opportunity to make a transformational change to Euston station, which will bring it into line with the other two stations.

[Several hon. Members]

rose—

[Mr McLoughlin]

I will give way to my right hon. Friend the Member for Chesham and Amersham (Mrs Gillan), but then I must make some progress.

[Mrs Cheryl Gillan (Chesham and Amersham) (Con)]

I am grateful to the Secretary of State for giving way while he is laying out his case. However, the case he is making for HS2 fails to recognise that there will still have to be an awful lot of work on our classic railway. It would be wrong if he did not tell people that the west coast main line is crumbling and will still need major investment and repairs, and that our classic railway will suffer. I hope that the money will be there for those railways, too.

[Mr McLoughlin]

I do not think that I have been misleading. I have been very open about the west coast main line. I do not think it is crumbling—as I have said, there has been £10 billion upgrade on the line north of Rugby. Between 2014 and 2019, we shall be spending £38 billion on the existing railway network, on things such as the electrification of the midland main line and a number of other schemes that I have already mentioned.

Even on moderate forecasts, services will be increasingly full by the mid-2020s. If we do not create extra capacity, people at stations such as Milton Keynes and Northampton will have to queue to get on a train to get to work. That is despite the £9 billion that we have spent on the west coast main line in recent years. More upgrades like that will not provide the extra capacity that we need. A new north-south railway line is the right answer. From day one, it will improve journey times and train services to Manchester and to the north-west and Scotland, because HS2 trains will continue on the existing network. It will free up more space for commuters and freight on existing routes, and places up and down the country will benefit from more services and seats. Although it is too early to talk about precise timetables, Milton Keynes, an area of particularly close interest for my Parliamentary Private Secretary, could get 11 trains an hour to London compared with six now, and places such as Rugby would get more non-stop journeys to London.

Today's debate is about phase 1, but when it is complete HS2 will be a wider network. We have consulted on phase 2, and I know that many Members have a strong interest in ensuring that we get the plans right. That should include serving cities on the eastern leg through the east midlands, Sheffield and Leeds as well as the north-west, and we will set out more details later this year.

Of course we must design HS2 well and build it carefully, which means making sure that our young people have the skills to get the engineering jobs it will create. We have therefore announced plans for the first new further education college in 20 years, backed by HS2. Soon we shall announce the winning location for the central facility and a network of outposts. I know that many places are keen to take part, such as Aylesbury college, Manchester and Birmingham.

One of the things that matters most about HS2 is the huge opportunity it offers to the next generation. There will be 2,000 apprenticeships—not just one-off jobs building the line, but careers. The numbers involved mean that we will take the skills base in this country to a new level, so the country will not only be better connected but better trained with the skills we need to compete not only in transport but across a range of industries. This is not just investment in steel and rolling stock; it is a huge investment in our people across the nation.

[Glenda Jackson (Hampstead and Kilburn) (Lab)]

The Secretary of State mentions apprenticeships and training. With HS1, the building of Stratford and, up to a point, the Olympics, there was a clear commitment that local people should be used on those building projects and that training schemes would be put in place to ensure that they had those opportunities. Will that same commitment apply to HS2?

[Mr McLoughlin]

Definitely. A little later, I shall go on to my obligations under the paving Bill, which will, I hope, go some way towards reassuring the hon. Lady.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

In response to an earlier intervention, the Secretary of State answered a question about Crossrail, which, of course, qualified for full Barnett consequentials. Today we are debating high-speed rail between London and the west midlands, which seems to me to be an England-only railway. Why are the UK Government not awarding Barnett consequentials in this case?

[Mr McLoughlin]

Because, as I said in earlier, the simple fact is that the trains will run on to Scotland. I think that Scotland will get the benefits from the first day that the new railway line is open. I have got used to people from Scotland and Wales talking to me about Barnett consequentials, and we will obviously follow any rules that require such consequentials, but my belief is that the benefits will go to both Wales and Scotland from the point at which HS2 first opens.

[Geoffrey Clifton-Brown (The Cotswolds) (Con)]

Will my right hon. Friend give way?

[Mr McLoughlin]

Well, I will give way to my hon. Friend, but this will be the last intervention for some time.

[Geoffrey Clifton-Brown]

I am delighted that my right hon. Friend wants to give way to me. Given that some of us approve of the principle of the Bill but believe that the route could be improved, will he say a little more about whether the Select Committee will have some latitude, given the instruction that it should consider only the broad alignment of the current deposited plans? Will it be able to consider matters such as the route to Heathrow?

[Mr McLoughlin]

Scrutiny is one thing that the Bill has not been short of since it was published. The Select Committee will be given certain instructions, which will be debated tomorrow, and I am sure that my hon. Friend will have the opportunity to raise his point in that debate.

It is essential that we get this investment right. That is why I welcome Sir David Higgins’s recent report “HS2 Plus”, which took a hard look at the plans. He proposes better developments at Euston, getting services to the north sooner, integrating HS2 more effectively with the existing rail network, and working with local authorities and businesses across the midlands and the north to ensure that they get the right railway for their needs. The Government support him in all that.

It is also right that the project should be built to budget and that is an essential part of the task we have set. In his report, Sir David says that the current £21.4 billion budget for phase 1 is right, but he goes on to warn that time is money. He cannot reduce the contingency budget of around £6 billion at this stage while the legislation has not yet been passed. In short, he throws a responsibility to all of us in the House; yes, a responsibility to consider the Bill properly, but not to delay it needlessly.

Sometimes people ask why we are rushing HS2. Some people ask why on earth it is taking so long. The answer is that we are doing it properly and to the timetable set out by the last Government in 2010, so that the first services run in 2026. But the final choice lies with Parliament. Last year, we passed the paving Act, which prepared for a new high-speed route to the midlands and the north. With support from the Government and Opposition, the House voted for the Act by 350 to 34. The Bill before us today will provide the detailed authorisation. As Parliament considers the Bill for phase 1, we will prepare our proposals for phase 2, responding to the Higgins challenge to accelerate and improve it so that the most can be made of this investment—a commitment to get high-speed services to more towns and cities in the midlands and the north, and, crucially, to make sure that we get the most out of the economic opportunities it will bring.

[Mr Jim Cunningham]

I thank the Secretary of State for giving way to me a second time. He said earlier that he would say what benefits cities such as Coventry would get from this project. Will he tell me now?

--- Later in debate ---

[Mr McLoughlin]

I think I did so a short time ago, but the simple fact is that Coventry will have the potential to get much better train services than if we failed to build HS2. There will be a far greater chance for commuters from Coventry to Birmingham or Leeds to have seats as longer distance passengers transfer to HS2. Without HS2 it is likely that trains to Birmingham and London from Coventry will become increasingly congested, with there being little chance to book a seat. Coventry residents will also have the opportunity to use the nearby Birmingham Interchange station. I was on a train from Birmingham to London last Tuesday in the middle of the day, and by the time it reached Coventry it was very nearly full. There is a capacity problem.

[Miss Anne McIntosh (Thirsk and Malton) (Con)]

I am following my right hon. Friend’s arguments closely. Can he put a date on bringing forward the route to the north, and can he put a figure on how much the north can be expected to benefit if we are not to have any connectivity? I believe that the economic development between Manchester, Leeds and York is being held back by the lack of investment in that route.

[Mr McLoughlin]

We are investing in the new intercity express programme, or IEP, trains, which is a massive upgrade of the railway network serving my hon. Friend’s constituency and region, and in this spending round we will be electrifying more than 800 miles of line throughout the country, which will benefit the northern hub, which I have just talked about.

I thank the Commercial Secretary for his work in leading the growth taskforce, developing proposals for maximising the benefits of HS2, alongside senior industrialists, senior trade union leaders and city leaders. That task matters because designing and planning work on the project is already under way and construction is set to begin in 2017, just three years away. Firms throughout the country are bidding for contracts, and places from Penzance to Edinburgh can benefit. Engineering students, currently sitting in classrooms in our towns and cities, will be the ones shaping and delivering the scheme, and pupils who are today in secondary school will be using it.

I come now to the content of the Bill. Put simply, Parliament is being asked to grant planning permission and the other powers needed for the first phase. A number of motions have been laid to facilitate the Bill’s passage, most of which will be debated tomorrow. Tonight the House is being asked to vote on the principle of the Bill: that there should be a high-speed railway between Euston and a junction with the west coast main line at Handsacre. The railway should include a spur to Birmingham Curzon Street and intermediate stations at Birmingham Interchange and Old Oak Common. If agreed tonight, this means it cannot be re-aligned or extended as part of the Bill. The proposed link to High Speed 1 will be removed from the Bill. It is not part of the principle of the Bill; instead, we are working on proposals to improve connections between the rail network and HS1.

Of course, projects of this size do not come without negative impacts. Rather than shy away from the challenges, however, we have been transparent. Parliament, as the decision maker, has a duty to ensure that the Government have met their legal obligations. We have carried out the largest environmental impact assessment of a major project ever undertaken in the UK. We have considered the alternatives, invited the views of the public and presented an environmental statement to Parliament alongside deposit of the Bill. We have observed all the European requirements, taking measures to protect species, to avoid harming special areas of conservation and to comply with the water framework directive. It is, however, not only about meeting our obligations, but about ensuring that we carefully balance the scheme’s progress with its impact. It is right that those directly affected by the scheme will have the opportunity to be heard by the Select Committee.

[Mr Andy Slaughter (Hammersmith) (Lab)]

Nearly all those who support the scheme are pleased that the route in the Bill, which the Secretary of State has just outlined, has substantive support across the House. There is, however, one exception. Given that the London chamber of commerce and industry has said that it is unlikely that Heathrow will close in the foreseeable future, why can the Secretary of State not be clear about what link there will be to the airport?

[Mr McLoughlin]

I do not want to pre-empt the review of the Davies commission, which is doing excellent work, but there is no doubt that Old Oak Common will serve Heathrow as far as Crossrail is concerned.

Our proposals strike the right balance. More than half the route is in tunnels or cuttings and more than two thirds of the line’s surface sections will be insulated by cuttings and landscaping. No grade I listed building is affected and only some 100 homes will be demolished in the nearly 100 miles of the rural part of phase 1. The line is designed to be secure against flooding. Indeed, it is notable that while weather affected many rail lines this winter, the HS1 line in Kent ran as normal.

We have also consulted and changed. There will be a longer tunnel at Northolt, a new tunnel at Bromford and a bypass at Stoke Mandeville. We have worked hard on state-of-the-art noise mitigation, but if more can be done by spending the budget better, I will ensure that that happens.

[Several hon. Members]

rose—

[Mr McLoughlin]

Who said, “Me first”?

[Andrew Bridgen]

I thank the Secretary of State for giving way. Is it not true that some 240,000 dwellings lie within a kilometre of the route, many of which are totally ineligible for any form of compensation under the current scheme, and that many people will go to their graves having been trapped in houses that they could not sell because of HS2?

[Mr McLoughlin]

I do not accept what my hon. Friend says, which was not reflected in the experience of building HS1.

[Alec Shelbrooke (Elmet and Rothwell) (Con)]

My right hon. Friend’s written statement mentions the express purchase, which is

“being launched today and is for those people living closest to the line, in…the ‘surface safeguarded’ area.”—[Official Report, 9 April 2014; Vol. 579, c. 20WS.]

Will he clarify how far from the line that would be, as it is not clear from his written statement?

--- Later in debate ---

[Mr McLoughlin]

I will come on to compensation in a little while, but I am slightly constrained in what I can say because the issue is being consulted on.

[Mr Liam Byrne (Birmingham, Hodge Hill) (Lab)]

I am glad that the Secretary of State wants to keep an open mind about getting the final designs right. High Speed 2 will be of huge benefit to the city of Birmingham, but we must not leave east Birmingham behind. The current proposal to destroy a space the size of 105 football pitches, where we have plans to create 7,000 jobs in the worst unemployment hot spot in the whole United Kingdom, is not a good idea. Birmingham city council will oppose the proposal during the petitioning stage. Will the Secretary of State keep his mind open to the idea that there could be a better site for the rolling yard that would not destroy east Birmingham’s economic future?

[Mr McLoughlin]

I am sure that the right hon. Gentleman, and indeed Birmingham city council, is very supportive of the overall scheme. Of course we will want to make those presentations to the Select Committee during the passage of the Bill. That site was looked at very carefully when we considered those that were available, because a new railway line requires areas where trains can be serviced. A number of people can argue about whether we have the right sites or the wrong ones, and of course that will be taken into consideration.

Of course I understand the depth of concern that the line has caused in some places, which is why I have made it clear to my officials that there is no place in the Department or in HS2 for talk of luddites or nimbys. We must respect people and try to meet their concerns.

[Sir John Randall (Uxbridge and South Ruislip) (Con)]

I am grateful to my right hon. Friend for his comment about luddites and nimbys, terms that were used unhelpfully at the beginning of the process. As he will know, there is still a great deal of concern. Will he say a little more about what can still be done during the process?

[Mr McLoughlin]

I understand the particular concerns that have been put to me by many Members, including my right hon. Friend the Member for Aylesbury (Mr Lidington) and my hon. Friend the Member for Kenilworth and Southam (Jeremy Wright)—they never cease to remind me of them. I certainly agree that we need to do what we can to help. Aylesbury is, after all, the largest settlement near the route between London and Birmingham, and there may be more that we can do. We will continue to talk to people in the Hawkslade part of Aylesbury, for example, and the National Trust about its idea for a land bridge near Hartwell house. I am sympathetic to the specific concerns in Wendover about any noise impact on St Mary’s church, which has become a really successful concert venue, thanks to local efforts. There are creative things that can be done along the route, such as planting tree screens to cut noise, which also makes ecological sense by creating green corridors. For places such as Fairford Leys, the line offers a chance to create new woodlands.

As I have said, I well understand that the people directly affected by the route are concerned about it. As Members have said in interventions, that is the case for all major infrastructure schemes. There is no doubt that major infrastructure schemes will inconvenience a number of people. That was certainly true when we rebuilt St Pancras and King’s Cross stations, and indeed with Crossrail, as we can see at Victoria station at the moment. Ultimately, however, we usually see a huge improvement for the general infrastructure of the nation as a result.

[Several hon. Members]

rose—

[Mr McLoughlin]

I am slightly concerned about the amount of time I am taking, but I will give way to the right hon. Member for Holborn and St Pancras (Frank Dobson).

[Frank Dobson]

King’s Cross and St Pancras are both in my constituency. They had the support of the local council, the support of the local MP and the overwhelming support of local people, even those directly affected. That is not the case with the proposals for Euston.

[Mr McLoughlin]

I am not sure what point the right hon. Gentleman is trying to make. If we only built infrastructure projects when we had the support of everyone concerned, we would be building very little infrastructure in this country.

[Mrs Gillan]

I am grateful to the Secretary of State for acknowledging that some parts of the country will take all the pain of this project but get none of the gain, unlike with the M40, which benefited Buckinghamshire and contributed to its economy by enabling people to get on and off it. I hope he is not ruling out looking at further mitigation, particularly for the area of outstanding natural beauty, which concerns not only my constituency but that of my right hon. Friend the Member for Aylesbury (Mr Lidington). If one is to have environmental credentials, it is important to protect our environment to the highest degree when implementing projects of this nature.

[Mr McLoughlin]

Of the 20.8 km of the route that passes through the Chilterns, only 3.3 km will be on the surface—at the moment the rest will be below ground level. I understand my right hon. Friend’s point, and that is something we need to bear in mind. She is right that her constituents benefited directly from the M40, and that was paid for by taxpayers across the whole country, rather than just by those in that area. I will give way to my hon. Friend the Member for St Albans (Mrs Main), as she has not yet intervened.

[Mrs Anne Main (St Albans) (Con)]

My constituency is not directly affected but my constituents have concerns about this, which have not been helped by the fact that the Major Projects Authority’s report on the risk has been suppressed or vetoed. If we are going to have projects like this, greater transparency is needed in respect of them.

[Mr McLoughlin]

I cannot think of an infrastructure project that has had more reports on it than this one. I set out my reasons for withholding the MPA report: it is important for civil servants to be able to speak freely and in confidence to Ministers. I made a full statement on that particular matter at the time I took the decision.

[Mr Kevan Jones (North Durham) (Lab)]

I declare my interest as a commissioner of the Commonwealth War Graves Commission. The commission had serious concerns about the elements of deregulation in the Bill that remove protections for monuments and burial sites where Commonwealth war graves are sited in this country. Will the right hon. Gentleman give an assurance that organisations like the Commonwealth War Graves Commission will be consulted as the Bill goes forward?

[Mr McLoughlin]

Yes. I give the hon. Gentleman that assurance on a matter that was raised with me privately by another member who served on the commission. We certainly will consult.

Of course, we must also get the property compensation right. I have announced an enhanced property compensation package and I wish to consult quickly on the further proposals. I want to do more, so we will introduce a need-to-sell scheme, which I want to be easy to understand and to work fairly. It is more than just a re-labelling of the previous exceptional hardship scheme. It will be more generous, too, but it does not stop there.

Let me outline the powers that the Government are seeking through this Bill. It provides the authority to undertake works required for the construction and maintenance of phase 1 of HS2: deemed planning permission for the railway; the power to purchase compulsorily the land required for the phase 1 route, as well as for business relocation and regeneration; modification of existing legislative controls that are not designed for a hybrid Bill—a process based on that used for HS1 and Crossrail; and the ability to nominate a person or organisation to deliver phase 1 on behalf of the Secretary of State.

I believe that the Bill before us today has the power to change our nation profoundly and for the better. Yes, HS2 is ambitious; yes, it will take a great deal of investment; yes, it will take time to complete—but so did the canals, the railways and motorways that previous generations left as their legacy. Our age can achieve something just as great. I am from the midlands—I was born in Staffordshire and I represent Derbyshire—and I know the potential of Britain. I know that, built right, on time and to budget, High Speed 2 can help our great cities thrive.

The choice comes down to this: do we invest in modern transport links to make sure that every part of Britain can compete for the best jobs, or are we really happy for London and the south-east to power ahead while the rest get second best? Put like that, the answer is clear to me. Yes, this project deserves careful scrutiny—the processes are in place to ensure that—but it also deserves to go ahead. Britain needs it to go ahead. Tonight, I hope that we will make good progress towards that end. I commend the Bill to the House.

--- Later in debate ---

[Mr Jack Straw (Blackburn) (Lab)]

I want to compare the relative wealth of the home counties, including Buckinghamshire—with Chesham and Amersham and many other constituencies—with that of the north-west, using figures provided to me by the House of Commons Library. Sixty years ago, the GDP per person in the home counties was just below that of Britain as a whole, and it was identical to that of the north-west. In the four and a half decades to 2001, a large gap opened up. By 2001, the home counties were on average nearly 20% better off than the average for mainland Great Britain, while the north-west had fallen back relatively to more than 10 percentage points below the average, 30 percentage points below the home counties. Similar data apply to the north of England as well.

Part of this widening gap is a consequence of factors that were, to a great extent, beyond the control of any Government—not least the fact that mass manufacturing migrated to the east of the globe. It was also due to factors within our control, however. I am not suggesting that, in the intervening period, the great cities of the north—Liverpool, Manchester, Leeds, Sheffield and Newcastle—have sat and wallowed in self-pity. When my hon. Friend the Member for Blackley and Broughton (Graham Stringer) was leader of Manchester city council, for example, that city pulled itself up by its bootstraps. A big gap remains, however.

Among many others, there is one significant reason for that gap. Ironically, a clue is to be found in today’s report by the Institute of Economic Affairs that is otherwise noteworthy only for its internal incoherence. In the report, the institute comments on the regeneration of London’s docklands, which it says

“has been subsidised by taxpayers through large sums spent on government transport schemes and other projects”.

It lists some of those projects. They include

“the Jubilee Line Extension, Docklands Light Railway…the south-east leg of Crossrail”,

as well as many road schemes. This is the same engine of growth that has benefited Buckinghamshire and the home counties, and that has led to the widening gap.

I do not blame any Member for speaking up for their constituency. I have no direct constituency interest in this matter. In any configuration, the line will not go through Blackburn, but I believe that it will greatly benefit us. I part company with those who have spoken in defence of their constituencies, however, when they try to elevate their understandable constituency concerns into some overall economic case against the project; that is frankly disingenuous.

The amendment speaks of its acceptance of the need to increase overall railway capacity. Had I been able to make an intervention on the right hon. Member for Chesham and Amersham (Mrs Gillan) in her untimed speech, I would have asked her, given that she accepts that need for increased capacity, how she intended to achieve it in the absence of HS2. I have been in the Chamber since the moment the debate started, and everyone has accepted that the west coast main line is full to capacity—[Interruption.] I hear someone say no. They have obviously not been on that line.

[Mr McLoughlin]

Does the right hon. Gentleman agree that one of the biggest problems of capacity relates to the feed into London? That is our biggest capacity problem. A lot of people have said that we should start in the north, but although that is tempting, the biggest capacity problem is in the south.

[Mr Straw]

I accept that. I came into the House a long time ago, when the line to Manchester and Liverpool was so slow that there was still a need for sleeper trains. They were very reliable, because they went slowly. I accept that for those travelling from the north-west and from the midlands, the main capacity constraints are those south of Rugby. The amendment proclaims a need for greater capacity, but it fails to provide further and better particulars on how to achieve it.

One reason that the west coast main line upgrade took so long and cost so much was that it had to be added on to the existing infrastructure. That was far more disruptive and costly than the provision of additional lines. I look forward to hearing alternative suggestions, but the only way I have heard of providing additional capacity for passengers and, critically, for freight is through the provision of additional two-track capacity. That would be far less disruptive than the construction of the M40 or any other motorway, and it would produce benefits to constituents in the home counties, as well as to those in the north and north-west, by relieving the present capacity constraints.

I am passionately in favour of the HS2 proposals—all the way: phase 1 and phase 2—but they can go ahead only on an all-party basis. I welcome the decisions of the Cabinet and the shadow Cabinet to back the Bill now and for whoever wins the election to back it, the other side of the election.

--- Later in debate ---

[Mr McLoughlin]

The hon. Lady is saying that people in her constituency would have to do this by tomorrow. The Bill does not refer to her constituents.

[Natascha Engel]

I am saying that the people who are affected will be given an incredibly narrow window between tomorrow’s date, 29 April, and 23 May, but for my constituents this may not happen until the process is further down the line. Those constituents who are affected will have a very narrow window in which to respond and they will have to pay, individually, a cost that may be too high for them. They will also have to submit the petition in person after filling in forms from a petition kit. The process is so complicated that, rather than encouraging people to get involved in the consultation process, it will stop them doing so.

I am really concerned that the whole project has been run along those lines. It has excluded the voices of those people most severely affected by it. It excludes those whose homes and communities will be destroyed, and it does not give a real opportunity for their concerns to be heard. It does not bring them any benefit and it takes away what they already have, and for that privilege we are asking them to pay £50 billion through their taxes. At the same time, local regeneration projects that have been blighted for years will continue to be blighted while all the economic regeneration gets sucked back into the cities again.

The true reason those people are not being consulted and nobody is trying to make the case to them is that the financial and economic case is so weak. The large majority with which this Bill will be passed tonight will tell the large number of people who have concerns that we think we know what is better for them. They disagree and we are denying them a right to say so.

In conclusion, the case for HS2 is no more sophisticated than saying, “We need to do something to improve our transport infrastructure, and this is something.” That is not a strong enough argument to destroy the lives, homes and local economies in the areas, towns and villages—like mine in North East Derbyshire—that are most deeply affected, and that is why I will oppose the Bill’s Second Reading.

--- Later in debate ---

[Stuart Andrew (Pudsey) (Con)]

Like my hon. Friend the Member for Warrington South (David Mowat), I have taken part in a number of lively debates on this issue, and there is a danger of repeating what many people have already said. We have heard that demand for long-distance rail has doubled. The lines on the west coast in particular are busy, but the east coast will soon catch up. I know from personal experience that the situation is bad enough at peak times now and is set to get much worse. Yes, we can tinker with the system again, or make the minor adjustments that we have seen, but that is expensive and will not solve the long-term problems. We need to be bold and ambitious.

Today, I want to focus on the needs of my city of Leeds and the wider northern economy. I realise that this debate is about phase 1, but without that we will not get up to my city. HS2 really must connect to Leeds. The Government’s commitment is critical to the exciting plans that the city and the wider city region have to boost our local economy. Not only will this provide much needed greater capacity in our rail network, but it will help us to reshape the economic geography, be a catalyst for regeneration across the city, and provide a real boost for jobs and skills.

I note that the Secretary of State did not mention in his speech that Leeds is bidding for the HS2 academy, so may I remind him that there is another bid from a great city in the north?

[Mr McLoughlin]

I am well aware that many cities are bidding, and I just mentioned a few. I am very sorry to have missed out my hon. Friend’s.

[Stuart Andrew]

Apology accepted.

I might be biased, but Leeds is an outstanding city. It is a major UK business centre and one of the best places in Europe to locate a business. It has one of the most diverse economies of the many UK centres that we have, which has helped it to survive and recover from many of the recessions that we have experienced—better, in fact, than many of the business centres in other European countries.

Between 2001 and 2008, Leeds enjoyed the fastest jobs growth of all the core cities. It is no coincidence that at the same time it has seen rail passenger numbers grow by 90%—again, the highest growth—and Leeds station is now the busiest station in the north, clearly demonstrating that good links bring along a good economy. Leeds is determined to build on its success and wants to be a brand new kind of city; a city at the heart of a city region that is the second largest economy in the UK with 106,000 businesses, the largest manufacturing base in the UK and eight universities. Bringing HS2 to Leeds and locating the new station on its south bank will help it to realise that goal, creating the opportunities that we need for growth and development on an unprecedented scale.

The regeneration of Leeds’ south bank covers 136 hectares—60 acres of land that is prime for development—and has the potential to deliver more than 10,000 jobs for the city. It will create a 3.5 hectare city centre park and the jobs that young people growing up in the city need. It will add to what is an already exciting part of south Leeds, which includes the HQs of Asda, Eddisons and aql and cultural attractions such as the Royal Armouries, and will provide homes for local people. It will also help to generate a growing economy across the city region and across the north as it will link into the additional investment that we are already seeing in rail infrastructure across the north of England. It will help to improve connectivity, creating a powerful non-London economic zone and help us truly to rebalance our economy. HS2 will bring Leeds within far faster reach of Sheffield City Region, the Derby, Derbyshire, Nottingham, Nottinghamshire local enterprise partnership, Birmingham and, of course, London. All that, along with east coast connectivity, provides us with a real chance to reshape the economy of the north.

Today, the Leeds economy is worth some £18 billion and has grown almost 40% over the past decade. There are 25,000 businesses in the city alone, which has the highest ratio of private to public sector jobs of all major cities bar London. It has also been resilient in these difficult times. Employment is up 11,000 since 2011. In 2013, we saw the opening of the £350 million Trinity retail centre. A new arena opened this year, which will also see the start of the new Victoria Gate development that will bring John Lewis to the city. The prospect of HS2 has seen Leeds and Manchester working together to set an ambitious growth strategy.

All that is incredibly important, but I am worried that it could all be at risk if we do not get our north-south connection working effectively. We need to ensure that we face the creeping problem of capacity. We need to connect our major cities so that they can do business with each other. We need a modern line that deals effectively with the problem, and not the usual make-do approach. We need a transport system that can cope and complement, and for me, HS2 is it. Let us be ambitious, let us spread the wealth, let us create the opportunity, and let us get HS2 going.

--- Later in debate ---

[Mark Reckless]

Yes I certainly do agree, and I think that is because of those improved journey times, including to Folkestone. The idea that there would be more jobs in Folkestone if the journey time were two hours rather than one hour, or that if we somehow had a man with a red flag in front of the train that would bring the greatest possible economic growth to the north or to Folkestone, is frankly absurd.

[Mr McLoughlin]

My hon. Friend is making a very good point. He is also making the same point that Sir Albert Bore and Sir Richard Leese would be making to us if they were able to address the House. They are the leaders of their councils and they would say that these lines will bring tremendous benefits to their cities. They are in the best place to know.

[Mark Reckless]

I agree with the Secretary of State. I would add, however, that further benefits to these northern cities and Birmingham could be accrued if we did more than just fulfil the intention of the direct links through to the continent of Europe. Although I understand why the previously proposed way of doing that has not gained support, I hope that we will still look at the possibility of reinstituting a direct connection between HS1 and HS2, and that when we look at the costs and benefits of that we look not only at the benefits to the north of being able to get through to Europe, but at the benefits for people from Manchester or Birmingham of being able to go directly through to east London, Kent or East Anglia from a connection at Stratford. The work Greengauge 21 did on that shows that the benefits will be huge. Yes, there would be benefits for my constituents and people in east London from being able to go from Stratford or Ebbsfleet through to Old Oak Common and on to the north, but a connection would also significantly add to the benefits for people coming from Birmingham and the north. I hope we will look at that.

I believe that there is scope within this Bill to make such improvements. From listening to some of the opponents, it is as if they assume that the costs are going to spiral out of control and that the benefits are all grossly exaggerated, but when I look through the work and the detail of the estimates and calculations, they strike me as extraordinarily conservative.

We have learned the lessons from the great infrastructure projects of the past. If we consider Crossrail or the Olympics, we see it is possible to deliver projects to time and to budget, and possibly faster or cheaper. Part of the reason for that is the very big estimate for contingency. Some people criticised, and we have heard Opposition Front Benchers saying that perhaps they would not support a project if costs were spiralling, but actually a substantial contingency had been factored in: £14.5 billion of the £42.6 billion is contingency. It is not contingency in order to get to our best estimate of what the cost is going to be; the contingency has been padded to the degree that we are 95% certain that the cost will come in below the number given. It is expected that more than £4 billion of that contingency will not be used, so perhaps some of that could be put towards providing a decent quality link between HS1 and HS2, to everybody’s benefit.

Abellio Greater Anglia Franchise

Lord McLoughlin Excerpts

Monday 28th April 2014 Written Statements

[The Secretary of State for Transport (Mr Patrick McLoughlin)]

During recess my officials concluded negotiations with Abellio Greater Anglia on a new directly awarded franchise, which will see the company continue to provide passenger rail services for 27 months. This will secure continuity of service until the new competed franchise, expected to start in October 2016, is let.

The agreement secures tangible benefits for passengers, including a refresh of the Mark III rolling stock fleet that will see the installation of power sockets, new carpets, new seat covers and better lighting. The new agreement also requires Abellio Greater Anglia to install controlled emission toilets on to their train fleet, which will significantly reduce the amount of waste dropped onto the tracks on the network.

New service improvements secured as part of the franchise agreement will double the current levels of off-peak services between Cambridge and Stansted airport (between 09.00 and 16.00) on Mondays to Fridays and provide a significant number of additional Sunday services on some of the branch lines operated by Abellio Greater Anglia.

This direct award lays the groundwork for the competed franchise to continue the improvements made to rail services in the region. It will also allow the findings and recommendations of the Norwich in 90 taskforce to be considered when the next franchise specification is developed.

This new contract continues my Department’s successful franchising programme in line with the schedule I set out in March 2013 and recently. The Government will continue to work in partnership with the private sector to deliver benefits for the industry, passengers and taxpayers.

Intercity Express Programme

Lord McLoughlin Excerpts

Monday 28th April 2014 Written Statements

[The Secretary of State for Transport (Mr Patrick McLoughlin)]

On 24 July 2012, at the same time that the Great Western intercity express programme (IEP) fleet was financed, commercial close was reached for the east coast fleet of IEP trains. On 18 July 2013, I informed the House of my decision to exercise a pre-priced option within those contracts to extend the IEP train order for the east coast main line by 270 further class 800/801 vehicles, in addition to the existing order for 227 vehicles. The process to reach financial close for the whole fleet and to reach commercial close for the extended fleet has now finished, and I wish to inform the House of the results.

I am pleased to announce that the east coast IEP contract has been financed by Agility Trains East. Agility Trains will design, build, maintain and service the rolling stock and maintenance facilities for 497 new vehicles over the 27.5-year contract term. The value of the contract is £2.7 billion. I would like to thank Agility and its constituent entities, Hitachi and John Lang, for their support.

The IEP will see state-of-the-art new trains brought into operation on the east coast main line in 2018 following their introduction on the Great Western main line in 2017. These faster, higher-capacity and more environmentally sustainable trains will improve passenger experience and comfort, and will provide 28% more seats into Kings Cross at peak times, while delivering more reliable and efficient services. The trains will be operated by the winner of the intercity east coast competition that is currently live.

Agility Trains has financed the fleet, but the Government are investing £330 million on the east coast main line, to ensure that the trains will be able to reach all of the destinations served by the current fleet.

Overall the Government are investing £38 billion to transform the rail network over the next five years—a record amount of funding that will generate growth, create jobs and boost business. The intercity express programme is a vital part of that transformation with the trains being assembled in Newton Aycliffe, creating 730 jobs and securing more in the supply chain.

The Government are committed to using investment in transport as an engine for growth. This deal will benefit passengers and communities both along the east coast main line and in other parts of the country.