Oral Answers to Questions
Lord McLoughlin Excerpts(12 years, 10 months ago)
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Mrs Siân C. James (Swansea East) (Lab)
5. What the current budget is for High Speed 2.
The Secretary of State for Transport (Mr Patrick McLoughlin)
The spending round of 2013 set a long-term budget for the delivery of HS2 of £42.6 billion. That is made up of £21.4 billion for phase 1 and £21.2 billion for phase 2. The budget includes significant contingency provision of £14.4 billion. That budget is being tightly monitored by the Government and we are confident that the railway will be delivered for less than that figure. I have set HS2 Ltd a “target price” for phase 1 of £17.1 billion.
Susan Elan Jones
France, Germany, Japan and many other countries have benefited hugely from their high-speed rail links, and many of us are fed up with a largely London-based commentariat that is seeking to stop a north-south high-speed rail link for this country, but does the Secretary of State agree that, if we are to build a better consensus, it is extremely important that the budget figures he referred to will be both monitored and met?
Mr McLoughlin
I completely agree with the hon. Lady. We have a good record of delivering big projects on time. The Crossrail scheme, which is being built at the moment, involves more than £14 billion and is the largest construction project in Europe. It will greatly enhance transport in London; it is essential, but HS2 is essential for the rest of the country.
Mrs Siân C. James
The Secretary of State has outlined the significant budget of the HS2 project, but what assurances can the Government give me and the people of Swansea East that they will give full consideration to the proposals of the Howard Davies commission and the benefits of a future high-speed rail link between Cardiff and Heathrow airport?
Mr McLoughlin
I do not want to anticipate or prejudge what the Davies commission report will say. The commission is very important and its interim report is due by the end of the year. The hon. Lady makes a point about infrastructure and the rest of the railway network. It is essential that we carry on investing in rail services in other parts of the country and, over the next spending review, Network Rail plans to spend some £37.5 billion on the current railway network.
Mrs Cheryl Gillan (Chesham and Amersham) (Con)
The Secretary of State was forced this week to launch a so-called fightback with a piece of expensive and self-justifying research from KPMG on HS2, because he has lost control of the budget and of the arguments, including the need to travel at speeds in excess of 250 mph. It is about time that we replaced HS2 with a thoroughly researched and prepared integrated transport strategy for all regions, including Wales, and covering air, road, rail and communications links. When will he cancel that project and produce a decent overall strategy?
Mr McLoughlin
I am not sure I was forced to do anything, but I was asked by the Public Accounts Committee to do proper research and to back up the case for HS2. I dare say that if yesterday’s report had come out negative, all those people who are against HS2 would have been shouting it from the rooftops. Because it came out positive, they are opposed to it.
Mr Alan Reid (Argyll and Bute) (LD)
The KPMG report showed that every region of Britain will benefit from plans for HS2 to go as far as Leeds and Manchester, but Scotland and the north of England would benefit even more if the lines extended to Glasgow, Edinburgh and Newcastle. How are the Secretary of State’s discussions with the Scottish Government progressing in that regard?
Mr McLoughlin
I am prepared to have the meetings with the Scottish Government. I announced last October that we would be looking to take the line to Scotland. That work is ongoing.
Mrs Louise Ellman (Liverpool, Riverside) (Lab/Co-op)
The Secretary of State referred to funds to be invested by Network Rail in the classic lines. Will he give an assurance that, in addition, there will be sufficient funds to invest in new passenger and freight services on lines freed by the development of HS2?
Mr McLoughlin
Indeed. The hon. Lady who chairs the Transport Committee embarks on an important point. One key problem that any future Government will face is that of capacity on the network, as well as speed, and this line is also very much about capacity. If we made the improvement that some people suggest on the present line, it would lead to capacity increases of about 53% between London and Birmingham. HS2 will lead to a capacity increase of 143%. That is why it is so important to meet the objectives that we both have.
Jeremy Lefroy (Stafford) (Con)
My right hon. Friend says that HS2 is about capacity rather than just speed, so will he instruct HS2 to cut the speed so that the route can be more flexible and do less damage to dozens of communities along the route, including five in my constituency?
Mr McLoughlin
I have tried to say that the case for HS2 is not just about speed and that capacity is one of the main reasons for it. Although the reduction in journey time between London and Birmingham is not huge—it will be in the region of 30 minutes—for great cities in the north such as Manchester and Leeds the reduction will be very beneficial. There is not just one reason; there are many reasons for doing this project. Even if we took the line down to a lower speed limit, it would not reduce the cost by much—we would be talking about 90% of the present cost, rather than 100%.
Mr Jim Cunningham (Coventry South) (Lab)
14. I agree with the right hon. Member for Chesham and Amersham (Mrs Gillan). Has the Secretary of State looked at an alternative integrated rail system, as opposed to high-speed rail? Is there a Treasury limit on spending for that project?
Mr McLoughlin
I have set out carefully the spending limit, and we have a put in place a reasonable contingency, based on internationally recognised figures. It is a big contingency and I hope, as the chief executive of Network Rail said a few weeks ago, that the project could come in under the budget that the Government have allowed.
Stephen Mosley (City of Chester) (Con)
The KPMG report this week revealed £15 billion of economic growth, mainly in the main conurbations of the north. Will my right hon. Friend confirm that not just those main conurbations but smaller towns and cities such as Chester will benefit from new and increased services because of increased capacity on the west coast main line?
Mr McLoughlin
My hon. Friend is absolutely right: this does add to the capacity and more services. Since I have been Secretary of State for Transport, I have noticed that my colleagues on both the Opposition and Government Benches always press for more and better services. If we are to adapt that and celebrate the success of railway travel, which in this country has gone from 750 million passenger journeys a year to 1.5 billion, with an increase doubling on inter-city lines, we must find that extra capacity.
Lilian Greenwood (Nottingham South) (Lab)
There is strong, cross-party agreement that a new north-south line is vital to tackle the serious and growing capacity constraints on our existing rail network. Will the Secretary of State confirm that this investment will not draw funding away from essential upgrades to the existing rail network such as the northern hub, electrification, and new inter-city trains? Does he agree it is imperative that the new north-south line remains on budget and on track?
Mr McLoughlin
I entirely agree with the hon. Lady, and she has pointed out three important projects that will take place between 2014 and 2019: 880 miles of electrification; the new purchase of inter-city express programme trains for the east coast and great western lines; and the northern hub. Those important projects are planned for between 2014 and 2019, and refer to the £37 billion that I mentioned Network Rail is going to invest in the current railway system.
Sir Tony Baldry (Banbury) (Con)
2. What steps he is taking to tackle potholes on UK roads.
Ian Lucas (Wrexham) (Lab)
T1. If he will make a statement on his departmental responsibilities.
The Secretary of State for Transport (Mr Patrick McLoughlin)
Since I was last at the Dispatch Box, my Department has announced £94 million in funding to boost cycling in eight cities and four national parks. My right hon. Friend the Minister of State has today published a consultation on the long-term property compensation measures for phase 1 of HS2. The Government have always been clear that they intend to go further than the existing discretionary scheme in order to assist affected property owners. The consultation proposals that we are setting out today are designed to do just that.
I am also announcing today important changes to the discount scheme, which will help local people who use the Dartford-Thurrock crossing, following a persuasive campaign by my hon. Friends the Members for Dartford (Gareth Johnson) and for Thurrock (Jackie Doyle-Price). From March 2014, those registered on the schemes will be able to make unlimited trips over the crossing for just £20 a year. For the first time, we will include privately registered vans, offering a welcome boost to small businesses.
Ian Lucas
The Wrexham-Bidston line, in one of the most successful industrial regions in the UK, north-east Wales and west Cheshire, is crucial to the development of the region’s economy. What comfort can the Secretary of State give to local businesses who have expressed the concern to me that HS2 will divert investment in any proposals in that region?
Mr McLoughlin
As we pointed out earlier in Question Time, we are making significant investment in the whole railway system. That will come sooner than HS2. We are spending £37.5 billion between 2014 and 2019. My right hon. Friend the Secretary of State for Wales has also talked to me about the line my hon. Friend has just referred to, and I will be looking at how improvements can be made to that line as well.
James Wharton (Stockton South) (Con)
T2. Pinch-point funding for our road network is very important. Ingleby Barwick in my constituency has significant traffic issues, especially where the A174 meets Thornaby road. Will the Secretary of State work with me to find a solution to make life a bit better for my constituents?
Mr McLoughlin
I certainly will work with my hon. Friend and meet to discuss this scheme with him. It was part of the applications made originally for the local pinch-point fund, but it did not fall in the first round of that. The scheme was very successful and over-subscribed, but I assure my hon. Friend that we are looking hard at ways in which we might go further, and I will be happy to talk to him about his particular scheme.
Toby Perkins (Chesterfield) (Lab)
T6. Returning to the subject of HS2, will the Secretary of State confirm—we have been talking about the importance of integrating the line—that residents in Chesterfield who want to take advantage of the benefits of HS2 will not have to drive down to Toton to do so, but will have a link from Chesterfield railway station?
Mr McLoughlin
Although the hon. Member for Bolsover (Mr Skinner) rightly pointed out that Toton is in Nottinghamshire, probably even he could throw a brick from Derbyshire into Toton.
Mr McLoughlin
Possibly even further than me. As the hon. Member for Chesterfield (Toby Perkins) knows, the line from Chesterfield goes through the Toton works, so one would imagine that there will be a good connection from Chesterfield and other stations to the new station we are planning at Toton.
Amber Rudd (Hastings and Rye) (Con)
T3. I wonder whether the Secretary of State is aware that the Hastings to Ashford rail line is the only unelectrified line on the south coast line. Will he join me in calling for the electrification of this line so that my constituents can look forward to more reliable and better link times to London?
Daniel Kawczynski (Shrewsbury and Atcham) (Con)
T5. The £100 billion the Government have set aside for infrastructure projects is warmly to be welcomed. May I reiterate to my right hon. Friend the importance of the north-west relief road around Shrewsbury and the importance that we attach to this vital project for the town, which is bringing great economic benefits to the whole of Shropshire and mid-Wales?
Mr McLoughlin
Once my hon. Friend starts a campaign he never loses an opportunity to mention it. He raised this point with the Prime Minister and he has a meeting planned with me. We are spending £9 million on pinch points to tackle existing congestion around the road. I look forward to my meeting with him, where I am sure he will make his case persuasively.
Chris Evans (Islwyn) (Lab/Co-op)
One in three blind or partially sighted people are spending about £30 a month on taxis because buses cannot accommodate them through the use of audiovisual equipment. What are the Government doing to change that?
Duncan Hames (Chippenham) (LD)
My constituents look forward to the electrification of the Great Western main line. When does the Secretary of State expect to begin a consultation on any reconfiguration of services, especially in the Bristol travel-to-work area, that will be made possible by electrification and the new trains that come with it?
Mr McLoughlin
I am grateful for my hon. Friend’s welcome for our planned investment. I will write to him about the more detailed question of the timetable so that he will be well aware of it.
Sheila Gilmore (Edinburgh East) (Lab)
I want to take the railways Minister back to his earlier statement about the east coast franchise. Could he be precise about the innovations that I and my fellow travellers will see if the process goes ahead?
Mr McLoughlin
We will see, when we make the invitations to tender, exactly what proposals come back from rail companies, but the simple fact is that this Government—and the previous Government, for that matter—have seen huge growth in our railways as a result of the innovation of the train operating companies. This is not new; it was well established under the previous Government and continues to be under this one.
Jake Berry (Rossendale and Darwen) (Con)
Thank you, Mr Speaker. Following on from the question asked by my hon. Friend the Member for Bury North (Mr Nuttall), will the Secretary of State confirm that he will continue to work with me and my hon. Friend for improvements on the M66, which is a key commuter route into Manchester for east Lancashire and Bury North, both of which have played their part, with their manufacturing-based economy, in reducing unemployment in our area?
Mr McLoughlin
I was very pleased to join my hon. Friend in his constituency a few months ago, where he explained to me some of the great difficulties he has with regard to communications and the transport links for his constituency. It is incumbent on us all to look at how we can address those particular problems, improve the transport links and, where we can, improve the road network as well as, if possible, the rail network. I understand that my hon. Friend has been fighting a valiant campaign, but that it has drawn a blank from the county council.
Intercity Express Programme
Lord McLoughlin Excerpts(13 years ago)
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The Secretary of State for Transport (Mr Patrick McLoughlin)
I have decided to exercise an option that was contained in the Intercity Express Programme (IEP) contract, signed in July 2012 with Agility Trains, a consortium made up of Hitachi and John Laing.
The option is to purchase a further 270 vehicles to replace the electric Intercity 225 fleet which currently runs on the east coast main line with a fleet of new, high quality, modern, higher capacity class 800 series nine-car electric trains. This is in addition to the core order to build nearly 600 vehicles to replace Britain’s fleet of Intercity 125 high speed trains along the Great Western and east coast main lines that were originally deployed by British Rail in the 1970s and 1980s.
The first class 800 series trains will enter revenue-earning service on the Great Western main line in 2017 and on the east coast main line in 2018. We expect the second batch of new class 800 series vehicles to be in service on the east coast from 2019. Passengers will see improvements to their travelling experience, including even more reliable services, improved telecommunications connectivity, increased leg space without compromising on luggage provision, and a greater chance of getting a seat. Train capacity will be 627 seats per train, 18% higher than the stock they are replacing which will mean that the class 800 series deployment in total will increase the number of seats in to King’s Cross in the morning peak by 28%. Journey times between London, Leeds and Edinburgh will also be reduced by several minutes. The new trains will be capable of running at 140 mph, which would lead to further journey time reductions, although operation at this speed will require signalling and infrastructure upgrades.
Furthermore, Hitachi, the manufacturers of the trains, has announced that it will assemble them at its dedicated manufacturing plant at Newton Aycliffe in County Durham. The order is a boost for the facility and its 730 planned jobs and many more in the local and national supply chains.
Exercising this option represents around a further £1.2 billion investment in Britain’s rolling stock, bringing the total contract value up to £5.8 billion covering the design, build, finance and maintenance of the fleet over a 27.5-year period. This highlights the Government’s commitment to infrastructure, to rail, to British manufacturing and to the strategy of growing and protecting the key Intercity rail markets in readiness for HS2.
High Speed Rail (Phase 2)
Lord McLoughlin Excerpts(13 years ago)
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The Secretary of State for Transport (Mr Patrick McLoughlin)
Today I am beginning a period of public consultation on the proposed route for phase 2. This is the route the new high-speed line will take from the west midlands to Manchester and Leeds, with connections to the west and east coast main lines to serve the rest of the north of England and Scotland.
HS2 will be a vital part of our infrastructure. This new high-speed line will open up opportunities for this country that we have not seen in generations. Its scope to transform this country is enormous.
The delivery of a state-of-the-art, safe, reliable high-speed network will not only better serve our great cities but will return Britain to the forefront of engineering and construction. We must seize the chance to deliver it. We can generate jobs, support regeneration and growth in cites and unite regions. This will enable them to better compete with the capital, building a stronger Britain.
Phase 2 will turn HS2 into a truly national asset that we can be proud of. It is vital that we get it right. We need the views of the people who will be affected by the HS2 line or who stand to benefit from it, including representatives of cities and businesses to ensure that the high-speed lines from the west midlands to Manchester, Leeds and beyond are the very best that they can be.
This is an opportunity to strive for the very best in every aspect—to boost our regions, to embrace new and sustainable technology and to ensure the very best passenger experience. The views we get during this consultation will play an important part in informing my decision on a final route, station and depot options by the end of 2014.
The phase 2 consultation will run for six months and will be accompanied by a series of public information events from mid-October 2013 to early January 2014 where people will be able to review local information and speak directly with HS2 Ltd staff about the proposals.
Although HS2 will benefit the whole country, the Government understand the impact and anxiety that these proposals have on property owners affected by the route. That is why I am today launching an exceptional hardship scheme (EHS) to assist property owners during the early stages of phase 2 development. The scheme is designed to assist owner-occupiers of residential, agricultural, and small business property before the route itself is firmed up.
It is a temporary scheme to help people whose properties are affected by the plans for the line, and are experiencing (or are at risk of experiencing) exceptional hardship because they can not sell them. Successful applicants will have their properties purchased at 100% of their un-blighted open market value. That is, the value of the property were there no proposals for phase 2 of HS2.
It is not the only opportunity for compensation. As plans for the phase 2 line are firmed up, we will consider options for further long-term discretionary compensation. We will shortly launch a fresh consultation on such options for phase 1. All this is in addition to statutory compensation measures.
I am determined to find the solutions that benefit the greatest number of people, best support our cities and have the least impact on our environment. Our consultations with the public are a vital part of achieving these goals—we want people to join the debate on phase 2 of HS2—and help us to shape a network we can all be proud of.
Copies of the consultation document, “High Speed Rail: Investing in Britain’s Future Consultation on the route from the West Midlands to Manchester, Leeds and beyond”; “HS2 Phase Two Exceptional Hardship Scheme Decision document”, and other supporting documents will be placed in the Libraries of both Houses.
“Action for Roads: A Network for the 21st Century”
Lord McLoughlin Excerpts(13 years ago)
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The Secretary of State for Transport (Mr Patrick McLoughlin)
Transport is an engine for growth and our major roads are vital to the prosperity of our nation, connecting people to jobs and businesses to markets. However, our roads have suffered from a lack of investment in recent decades, and we face rising traffic in the years to come. Without action, this will place severe strain on networks that are already under pressure, worsening the experience of motorists and damaging Britain’s ability to compete.
That is why at the recent spending round we announced a transformational investment in our road network, with £12 billion for road maintenance and a trebling of investment in major road schemes, including the addition of over 400 extra lane miles of capacity, resurfacing 80% of the strategic road network and upgrading our most important “A” roads.
At the spending round Government also announced that they would turn the Highways Agency into a publicly owned corporation with long-term funding certainty and flexibility, backed by legislation.
Today I am publishing a Command Paper, “Action for Roads”, which builds on the investment commitments made at the spending round and outlines the reforms we are taking forward to ensure delivery, including:
Reform of the status of the Highways Agency to make it a publicly owned company.
Mechanisms for funding certainty and flexibility, to allow greater efficiency and to give suppliers the assurance they need to begin training new workers for delivering our future programme.
A clear, long-term roads investment strategy to provide a detailed view of what the Highways Agency will be expected to deliver.
New powers and independence, allowing the agency to operate with greater commercial freedom, deliver with certainty and cut costs.
A “motorists champion” to provide a strong voice for all road users, hold the new company to account and deliver the best performance and value for road users.
I expect these reforms to generate additional savings to the taxpayer of £600 million, while ending decades of underinvestment and uncertainty in our road network. And it will give the construction and maintenance industries the confidence they need to recruit and train skilled workers to deliver this increase in transport projects over the coming years.
When upgrading our network, the focus will be on cutting congestion and minimising the environmental impact of roads. That is why today I am also announcing £500 million by 2020 in additional funding for the Office for Low Emission Vehicles to advance ultra-low emission vehicle (ULEV) technology and encourage people to buy and use ULEVs. In addition, bridges and tunnels will be built to help cyclists and walkers to move between communities where motorways and major A roads make these journeys difficult.
The scale of additional funding being made available for strategic roads will allow more investment in environmental safeguards to help resolve and reduce long-standing environmental problems. These could include better landscaping, tunnelling, “green” bridges and noise barriers to improve roads’ environmental performance.
And the Government will tackle the backlog of maintenance on local roads, spending £6 billion over the next Parliament in addition to the money that councils spend from other sources to reduce the number of potholes. Our overall investment in maintenance will sustain over 11,000 jobs through every year of the next Parliament.
The Government intend to consult later this year on detailed plans for turning the Highways Agency into a publicly owned company.
The document is available at:
https://www.gov.uk/government/publications/action-for-roads-a-network-for-the-21st-century.
Related to the Command Paper, I am also today publishing “Road Traffic Forecasts 2013” and have placed copies in the Libraries of both Houses.
Rail Franchising
Lord McLoughlin Excerpts(13 years ago)
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The Secretary of State for Transport (Mr Patrick McLoughlin)
I am today laying before the House the Government’s response to the Brown review of the rail franchising programme.
Richard Brown’s review was one of two independent reviews I commissioned following my decision in October last year to cancel the inter-city west coast (ICWC) franchise competition and put the wider franchising programme on hold. His review considered the wider implications for the rail franchising programme of the position reached on the ICWC competition, taking into account the findings and recommendations of the Laidlaw inquiry which had focused on establishing what had gone wrong with the ICWC procurement. The report of the Brown review was laid before the House on 10 January this year.
The review was a thorough examination of the issues led by a highly respected industry figure. I welcomed its publication and its conclusion that franchising is a fundamentally sound approach to securing the provision of passenger rail services on which so many people rely.
The review made a number of important detailed recommendations for improving the way franchises are specified, competed for and managed. The Government’s response broadly accepts those recommendations. It records the significant progress we have made over the last six months in implementing them—including restarting the franchise programme, publishing a full revised franchising programme and prior information notice on 26 March and a franchise competition guide on 25 June, and strengthening the capability and governance of the Department’s franchising organisation. We have set out a high-level response to each of the many specific recommendations made—indicating where relevant when and where more detailed information will be provided.
I am confident that this response and the actions we have already taken provide the industry with the clarity and confidence it needs about the way forward for rail franchising, which remains an integral part of our plans to deliver a better and more efficient railway for passengers and the taxpayer.
Drug Driving
Lord McLoughlin Excerpts(13 years ago)
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The Secretary of State for Transport (Mr Patrick McLoughlin)
In May 2012 the Government introduced primary legislation to Parliament that would create a new offence of driving with a specified controlled drug in the body above the specified limit for that drug. The Crime and Courts Act 2013 sets out the framework for the new offence.
Regulations now need to be made to specify the drugs to be included in the legislation and the limits to be specified. I have today published a consultation seeking views on these regulations. The proposals follow a report published in March this year by a panel of medical and scientific experts which provided specialist advice to the Government on the effects of specific drugs on drivers’ ability.
The introduction of the new offence will reduce the amount of time, expense and effort involved for the police and the courts when prosecutions fail because of the difficulty of proving that a driver is impaired by a particular drug.
In the consultation we have proposed a zero-tolerance approach to deal with those who drive under the influence of illegal drugs as this sends the strongest possible message that you cannot take drugs and drive.
In taking a zero-tolerance approach to these drugs, the Government propose to set the limits at a level that does not catch someone who has consumed a very small amount of an illegal drug inadvertently. In considering what approach to propose for each illegal drug and what limit to set, the Government have weighed up a number of factors including the evidence about the use of the drug when driving, wider drugs policy, and the findings and recommendations from the expert panel.
After considering all of the above we propose to take a zero-tolerance approach to the following eight controlled drugs which are known to impair driving: cannabis, MDMA (ecstasy), cocaine, ketamine, benzoylecgonine (primary metabolite of cocaine), methamphetamine, lysergic acid diethylamide (LSD), 6-monoacetylmorphine (6-MAM—heroin and diamorphine).
We have also put forward our approach for dealing with drivers who use drugs which have recognised and widespread medical uses but which can also affect a patient’s ability to drive and are sometimes misused. We know that the vast majority of people who use these drugs are doing so responsibly and safely and that is why our approach does not unduly penalise drivers who have taken properly prescribed medicines. The limits we propose to set follow the recommendations of the expert panel, which in the vast majority of cases will avoid the new offence catching out drivers who have taken properly prescribed or supplied drugs in accordance with the directions of a healthcare professional or the drug manufacturer. This will avoid inconveniencing the public and taking up police time.
Taken together these proposals will make our roads safer for everyone by making it easier for the police to tackle those who drive after taking illegal drugs and clarifying the position for those who take medication.
The consultation starts today and closes on 17 September 2013 and copies will be laid in the Libraries of both Houses.
HS2
Lord McLoughlin Excerpts(13 years ago)
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The Secretary of State for Transport (Mr Patrick McLoughlin)
I can announce to the House today my decisions regarding safeguarding phase one of HS2—the route between London and Birmingham. Safeguarding directions protect the route of HS2 from conflicting development, and also give many of those who own property in the safeguarded area the right to serve a blight notice and request that the Government purchase their property under the terms of the compensation code.
Between October 2012 and January 2013 my Department consulted on issuing safeguarding directions for phase one of HS2. In total, 3,761 responses were submitted during the consultation period. Following careful consideration of those responses, I have today issued, under the Town and Country Planning (Development Management Procedure) (England) Order 2010, safeguarding directions to local planning authorities (LPAs) along most of the route of phase one of HS2.
LPAs to whom safeguarding directions apply are required to consult the named authority—in this case High Speed Two (HS2) Limited—on undetermined planning applications in respect of land that is within the safeguarded area. If a LPA is minded to grant planning permission otherwise than to give effect to HS2 Ltd’s comments then the planning application is referred to the Secretary of State for Transport who is able to direct a final decision on the planning application. The purpose of safeguarding is not to prevent development along the route of HS2, but to ensure that any development that does take place is consistent with our plans for the railway.
Safeguarding is also a trigger for statutory blight procedures under the Town and Country Planning Act 1990. Owner-occupiers of properties within the safeguarded area who want to move may now 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 unblighted 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. We do not expect that all properties within the safeguarded area will be required for the railway. Compulsory purchase powers to acquire properties needed for the railway will be set out in the hybrid Bill and can not be exercised until that Bill has Royal Assent.
Information on compensation specifically aimed at those who own property within areas safeguarded for HS2, including application forms, is available at, http://www.hs2.org.uk/ or by phoning the HS2 Ltd enquiries line on 020 7944 4908.
I have placed a summary of the responses to the safeguarding consultation in the Libraries of both Houses, and am publishing a command paper detailing the Government response to the consultation on safeguarding HS2. Both are available at http://www.hs2.org.uk/ safeguarding.
It should be noted that sections of the HS2 route in both Bromford and Ealing have not yet been safeguarded, pending a decision on whether there should be bored tunnels in these locations. These proposed design changes are the subject of a consultation launched in May 2013. I expect to announce my final decisions later this year.
Without HS2, key rail routes connecting London, the midlands and the north will soon be overwhelmed. HS2 will link eight of Britain’s 10 largest cities, serving one in five of the UK population. But the Government have always recognised the impact of HS2 on those living along the line of route. Issuing safeguarding directions brings certainty to many owner-occupiers living in the safeguarded area who can now apply to have their homes bought. I can assure the House that we will seek to process blight notices swiftly so that those who qualify can move as quickly as possible.
Thameslink
Lord McLoughlin Excerpts(13 years ago)
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The Secretary of State for Transport (Mr Patrick McLoughlin)
I would like to inform the House that a contract to design, build, finance and maintain a fleet of 1,140 new carriages for use on the Thameslink rail line has been awarded to Siemens plc and Cross London Trains, a consortium comprising Siemens Project Ventures, Innisfree Ltd and 3i Infrastructure plc.
Siemens expects the award of the rolling stock project will create up to 2,000 jobs across the UK supply chain in component manufacturing, the construction of two new depots and subsequent maintenance.
The deal is part of an overall circa £6 billion infrastructure and rolling stock upgrade to radically increase capacity on one of Europe’s busiest stretches of railway improving connectivity and reliability across the capital and the south-east.
The deal is expected to see the first new train running on the network by the start of 2016. The introduction of the full fleet by the end of 2018 will enable a 24 trains per hour service operating through the capital at peak times. A new interchange at Farringdon will give Thameslink passengers access to Crossrail for east-west journeys across London.
The new generation of electric commuter carriages will release existing carriages for use elsewhere on the network, particularly as further routes are electrified, for example in the north-west of England and the Thames Valley commuter lines.
The jobs created by the rolling stock project are in addition to those created by the Thameslink infrastructure works which are currently under way. At the peak of construction activity it is expected that around 3,000 people will be directly employed on the Thameslink programme infrastructure works with as many again employed in related jobs in the wider community.
Confirming the completion of this important deal is good for transport, good for the economy, and good for growth.
Oral Answers to Questions
Lord McLoughlin Excerpts(13 years, 1 month ago)
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Mark Menzies (Fylde) (Con)
Q1. What steps his Department is taking to improve coastal safety.
The Secretary of State for Transport (Mr Patrick McLoughlin)
The Department works closely with many organisations to promote safety around our coast.
Last year we saw an increase in accidents around this time of year, and while I want to encourage everyone to enjoy our beautiful coast this summer, I want them to stay safe and to follow the advice of organisations such as the coastguard, the RNLI, the National Water Safety Forum and the Royal Yachting Association so that they enjoy their time around the coastline.
Mark Menzies
Over the summer months, millions of tourists will flock to tourist resorts such as Lytham St. Annes and the Fylde coast. Will my right hon. Friend assure the House that all will be done to keep our inshore waters as safe as possible to encourage more people to holiday here in the UK?
Mr McLoughlin
My hon. Friend is right that many constituents will flock to the coast, including the coastline in his constituency and many others around the UK. Our coastline is fantastic, attractive and beautiful, but it is also dangerous and people should not take risks or underestimate it.
Mrs Louise Ellman (Liverpool, Riverside) (Lab/Co-op)
Amphibious vessels such as the Duckmarine that recently sank in Liverpool appear to have at least three regulators: VOSA and the traffic commissioners; the Maritime and Coastguard Agency; and the Driving Standards Agency. Will the Secretary of State ask the accident investigators to consider whether this split regulation and split responsibility is the best way to guarantee public safety?
Mr McLoughlin
Of course we are all very concerned about the incident that happened in Liverpool and I will talk to the inspectorate about it. A report is being prepared by the marine accident investigation branch. I will want to see what it says, and I shall take the point made by the hon. Lady as Chair of the Select Committee.
Mr Iain McKenzie (Inverclyde) (Lab)
It has been revealed that the maritime rescue co-ordination centre in Belfast has been staffed below risk level on 191 shifts this year alone. Does the Minister find that acceptable, and, if he does not, what is he doing about it?
Mr McLoughlin
It is vital that we have cover, and that if there is low availability pairing arrangements ensure that others take over that cover. We will not demur from our responsibility.
Mr Nicholas Brown (Newcastle upon Tyne East) (Lab)
Q2. What his policy is on quality contracts for bus services.
Jenny Chapman (Darlington) (Lab)
6. What his policy is on the privatisation of east coast main line services; and if he will make a statement.
The Secretary of State for Transport (Mr Patrick McLoughlin)
This Government’s programme for rail franchising was announced on 26 March. The comprehensive schedule included the intention to return the inter-city east coast franchise to the private sector by February 2015, and that remains our policy.
Jenny Chapman
The east coast main line will have returned £800 million to the Exchequer by the end of this financial year. Are not the Government taking us from a position in which the line subsidises taxpayers to one in which taxpayers, through their fares, will subsidise shareholders?
Mr McLoughlin
I am guided by the words of the last Labour Transport Secretary, who said:
“I do not believe that it would be in the public interest for us to have a nationalised train operating company indefinitely…because of our recent experience of rail franchising”.—[Official Report, House of Lords, 1 July 2009; Vol. 712, c. 232.]
He said that when he held the job that I hold now, and I think he was right.
Andrew Bridgen (North West Leicestershire) (Con)
The east coast main line has benefited from major improvements over the last 20 years. Will my right hon. Friend assure me that the Government will not neglect the need for future investment in that important route, notwithstanding the huge amounts of money that are being sucked into the doomed HS2 project?
Mr McLoughlin
Huge investments are being made in the east coast and, indeed, a number of other railway lines. Our package of rail investments between 2014 and 2019 will lead to the largest-ever electrification on our railways. The Chancellor confirmed that and further investment in the railways yesterday.
Phil Wilson (Sedgefield) (Lab)
I refer the House to my entry in the Register of Members’ Financial Interests.
I support the HS2 project, but because that network will not extend to the north-east of England, there will still be a need for investment in the east coast main line. One option, under the intercity express programme, is the building of a further 270 carriages at the Hitachi factory in Newton Aycliffe. Will the Secretary of State agree to that? It would constitute an investment in sustainable jobs, and an investment in the long and proud tradition of train building in the United Kingdom.
Mr McLoughlin
I welcome Hitachi’s investment at the Newton Aycliffe site, following a £4.9 billion contract that it has already won for refurbishment of IEP trains. The Department is currently considering other proposals. Huge investment is being made in all our railways, partly as a result of the huge increase in the number of people who use them.
Sheila Gilmore (Edinburgh East) (Lab)
Q12. During a debate in the House last Thursday, the Minister of State acknowledged that investment in infrastructure and rolling stock for East Coast would be financed by the taxpayer, but that there would also be some private investment. Perhaps—
Sheila Gilmore
What additional investment does the Secretary of State see privatisation bringing?
Mr McLoughlin
I simply say to the hon. Lady: look at what has happened since privatisation—and, indeed, all the current franchises in operation were let by the last Government.
Maria Eagle (Garston and Halewood) (Lab)
At the previous Transport questions the Minister of State said on East Coast that
“the involvement of the private sector means that we can increase, over and above the taxpayers’ money, the money that can be invested”.—[Official Report, 25 April 2013; Vol. 561, c. 995.]
Yet he has now admitted to me in a letter that the investment
“comes from an increase in the value of Network Rail’s regulatory asset base”,
and he says
“it is through private sector operation that we can best realise the benefits of the planned investment.”
Why does the Secretary of State not now just admit to the House that his Minister was wrong?
Mr McLoughlin
No, what my right hon. Friend said was absolutely correct. We are seeing huge investment in the railways and, as I said just a few moments ago, all the franchises currently in operation were let, and endorsed, by the last Government.
Maria Eagle
The fact is that the Secretary of State’s policy does not bring in any additional investment and is costing taxpayers, with millions of pounds paid to train companies to extend contracts so we can focus on East Coast. He claimed West Coast is paying more money back to the taxpayer than East Coast: it is not. He said Lord Adonis backs his plans: he does not. He says they are vital to bring in investment: they are not. Is it not the case that, one by one, his arguments for this costly and unnecessary privatisation have fallen away?
Mr McLoughlin
It is wrong to draw direct comparisons between one company and another. East Coast uses older rolling stock, which is cheaper to rent than the Pendolinos used by West Coast, so I do not acknowledge what the hon. Lady says. What I do acknowledge is that there has been huge growth in the railway industry since privatisation. That has been brought about in the main by competition between the different rail-operating companies—something that the last Government endorsed throughout the entire 13 years when they had the power to change any of these things.
Mr David Ward (Bradford East) (LD)
7. What progress he is making on approving schemes under the local pinch point fund.
The Secretary of State for Transport (Mr Patrick McLoughlin)
From the local pinch point fund, I have announced 72 schemes across the country that will benefit from £190 million of Government funding. Together with third-party contributions, including from the private sector, over £300 million will be invested as a result of that fund.
Mr Ward
I thank the Secretary of State for his answer, and for the welcome infrastructure investment, particularly in commuter routes. Despite the fact that in Bradford people are either travelling up a hill or are just about to do so, cycling is very popular. Every day tens of thousands of people travel from Bradford to Leeds and from Leeds to Bradford. Can the Secretary of State give me any information about the “highway to hell”, the proposed scheme for the cycling superhighway between Leeds and Bradford?
Mr McLoughlin
I am always keen to look at schemes that help cyclists, including by increasing their safety. A number of schemes are currently before the Department, and I hear what my hon. Friend says in support of that bid, but I have to say there are bids from a number of colleagues for these schemes.
Iain Stewart (Milton Keynes South) (Con)
I thank my right hon. Friend for the approval given for the improvements under the fund to the A421 in my constituency. May I ask what his hopes are for the future scope of that fund, so we may, perhaps, bid for further schemes on the A421, including at the western edge of my seat leading into your constituency, Mr Speaker?
Mr McLoughlin
Well, Mr Speaker, I do not think I want to prejudge any future schemes that may or may not be developed. What I would like to point out is that we announced the local pinch point fund last year, and it has been incredibly successful. We had more bids than we had money available for it. Although I am mindful of that, I will see what else can be done. However, as a result of the Chancellor’s announcements yesterday and the statement shortly to be made by the Chief Secretary, there will be huge investment in our roads, which is much needed.
Simon Wright (Norwich South) (LD)
T1. If he will make a statement on his departmental responsibilities.
The Secretary of State for Transport (Mr Patrick McLoughlin)
Since I last addressed the House, I have been able to announce the full programme of local pinch point schemes, benefiting from £190 million of capital funding from the Government. Recognising the crucial role that such capital investment plays in unlocking growth, my right hon. Friend the Chancellor of the Exchequer yesterday announced a 5.5% real-terms increase in the Department’s capital budget.
The Government have also this morning published the complete road casualty statistics for 2012. I can tell the House that in 2012 the number of reported deaths on our roads fell by 8% to their lowest level since records began in 1926. This is welcome news. However, we cannot afford to be complacent. The number of cyclist fatalities increased by 10% within the year, underlining the importance of our continued work in making cycling safer.
Simon Wright
Norwich is one of the country’s leading cycling cities, with one in five adults cycling at least once a week. The city has ambitions to double this figure in the next 10 years, and Norwich’s bid for city cycling ambition funding would go a long way to achieving that aim. May I urge the Secretary of State to back the bid and inform me when he intends to make an announcement?
Mr McLoughlin
I welcome Norwich’s ambitious plan to double the number of adults cycling over the next 10 years. An announcement on the successful cycling ambition grant bidders will be made as soon as possible, but as I said in my opening statement we cannot be complacent about cycling safety. I look to the increasing interest in the House in this subject and I will consider what else the Department can do.
Lilian Greenwood (Nottingham South) (Lab)
Will the Secretary of State introduce new legislation to improve the regulation of level crossings before the end of this Parliament?
Mr McLoughlin
I will certainly consider what the hon. Lady says about level crossings. I have had conversations with Network Rail about what we should do about them. I will look at whether legislation is the right way to go or whether we already have the powers to get things put right.
Mr David Ward (Bradford East) (LD)
T5. My constituents face some of the highest car insurance premiums in the country. I am aware that many Departments have to be involved in this, but will the Minister reassure me that dealing with this terrible issue remains a top priority?
Mr William Bain (Glasgow North East) (Lab)
T2. In the past few years, rail fares have been rising almost three time as fast as wages, and are among the most expensive anywhere in Europe. What will the cap be on regulated rail fares by franchised rail operators in the 2015-16 financial year?
Mr McLoughlin
With the help of my right hon. Friend the Chancellor, we have capped the overall increase in regulated fares to RPI plus 1. I am very aware of the pressure of rail fare increases that passengers face, and so are the Government.
Harriett Baldwin (West Worcestershire) (Con)
T6. This week, a private developer announced plans to invest £400 million in private housing in Worcestershire; it is also going to help with the dualling of the southern link road. Will the Department commit to working with my county council to ensure that we use the opportunity to unlock further investment in Worcester Parkway station and a new bridge across the River Severn to the heart of cyber valley in Malvern?
Chi Onwurah (Newcastle upon Tyne Central) (Lab)
T3. Last Friday, many hon. Members from across the north-east went to their local East Coast rail station to highlight the planned privatisation. At Newcastle Central station and elsewhere, the support for East Coast’s remaining in the public sector was overwhelming, and that has since been emphasised by many letters and e-mails. So why is the Secretary of State ignoring the views of those who use East Coast rail and pressing ahead with a costly, wasteful, unnecessary and ideological privatisation?
Mr McLoughlin
As I have said many times, if it is ideological, it must have been the ideology of the previous Government, because that is what the former Transport Secretary and the former Chancellor said should happen. It is not ideological; it is about getting the best service and making sure we get long-term planning on the east coast main line. I believe that we will get a better service because that planning for the future will take place.
Stephen Gilbert (St Austell and Newquay) (LD)
T7. Forget high-speed rail; in south-west England and Cornwall, we welcome average-speed rail, reduced fares and wi-fi on long-distance services. What progress is being made?
Mr McLoughlin
I was down in the west country—the Cornwall and Devon area—just a few weeks ago. I fully recognise the importance of mobile services for the travelling passenger and I am keen to see improvements made. We are discussing with First Great Western how to deliver better services to the hon. Gentleman’s constituents.
John Robertson (Glasgow North West) (Lab)
T4. Following on from the question asked by my hon. Friend the Member for Glasgow North East (Mr Bain) about fares, in a recent poll by Passenger Focus only 42% of passengers were satisfied with the service they were receiving. Exactly what is the Minister going to do to improve that? Might it not be time for us to freeze fares until people are satisfied with the service?
Mr McLoughlin
The Opposition have to decide whether they want investment to continue at the levels that we are putting in to the railways. If they do, it has to be paid for. I believe the cost has to be shared between taxpayers and those who use the services. I make no apology for the amount of investment that this Government are putting in to Britain’s railways. It is desperately needed and the right thing to do, but it has to be paid for.
Mr Alan Reid (Argyll and Bute) (LD)
T9. I am pleased that in recent years the volume of freight being carried on our railways has increased, and it is important that that welcome trend continues. What plans do the Government have to encourage as much freight as possible to transfer from road to rail?
Sir Alan Haselhurst (Saffron Walden) (Con)
Does my right hon. Friend the Secretary of State accept that the transformation of the passenger experience at Stansted airport needs to be matched by a transformation in the time it takes to get to Stansted airport, specifically an improvement on the 51-minute journey, which I understand he undertook a week ago?
Mr McLoughlin
My right hon. Friend is right. As he knows, I was at Stansted last week and saw at first hand the subject of his representation and his call for greater investment in Stansted airport. I would like to discuss that with him and think about it with Network Rail.
Valerie Vaz (Walsall South) (Lab)
T10. Stafford road and Stanhope way in my constituency are in a state of chaos owing to unco-ordinated bus services using narrow residential roads. What plans does the Minister have to look at the strategic co-ordination of bus services outside London?
Ian Lavery (Wansbeck) (Lab)
Earlier this week statistics were released suggesting that in London, transport spending per head of population is 520 times more than in the north-east region—£2,700 in London, compared with a measly £5 in the north-east. What is the Secretary of State going to do to ensure a fairer distribution of transport finances to the north-east region?
Mr McLoughlin
It is right that there has been large capital investment in London. Building Crossrail was the right thing to do. It was long overdue and it is now being built. It is currently the largest construction project anywhere in Europe. But I also think we must get the balance of transport spend right, and that is partly why HS2 is an important means of spreading those benefits. I very much bear in mind the points that the hon. Gentleman makes. As I pointed out to one of his hon. Friends, we are spending £4.9 billion on the intercity express programme for new trains for the north-west and the south-west.
High Speed Rail (Preparation) Bill
Lord McLoughlin Excerpts(13 years, 1 month ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Secretary of State for Transport (Mr Patrick McLoughlin)
I beg to move, That the Bill be now read a Second time.
Today, my right hon. Friend the Chancellor of the Exchequer has set out far-reaching plans to provide the infrastructure that we need to compete in the global race. We need better roads, better airports, better ports, and better rail links too—an ambitious programme for all parts of our country, with HS2 an important part of that. A growing economy, a growing population and growing demand for transport, which have seen rail travel double in a decade, mean that we must act. HS2 will be the first new main rail line north of London for 120 years, linking at least eight of our 10 largest cities, and improving services for Scotland too. I am pleased that HS2 enjoys the broad backing of all the main parties in the House. I want to make three points.
Mrs Cheryl Gillan (Chesham and Amersham) (Con)
The Secretary of State has just said that the proposed High Speed Rail (Preparation) Bill paves the way for links to Scotland, so will he explain why clause 1(2)(a) does not make any mention of Scotland or proposals to connect HS2 to Scotland?
Mr McLoughlin
I shall come on to explain, if I may make a bit of progress, the way in which we shall link up to Scotland, and why the Bill covers the area. The Bill provides that important opportunity, and I shall come to that in a short while.
As I was saying, I want to make three points: first, the reason why a new high-speed line is right; secondly, the purpose of the Bill; and thirdly, the work that we are doing to manage the costs of the scheme. Why is HS2 necessary? The answer is not only speed, although HS2 will take an hour off journeys between London and Manchester, and between Birmingham and Leeds, and it will bring two thirds of people in the north of England within two hours of London.
Fiona Bruce (Congleton) (Con)
Is the Secretary of State aware that if there is to be a tangible economic benefit to my constituency and the wider Cheshire region, there must be a hub station stop at Crewe, otherwise it will take longer to travel by High Speed 2 up to Manchester and then travel down on a local line to that area?
Mr McLoughlin
I know that my hon. Friend is concerned, as I am, to make sure that there are sufficient connections right across the country. We have not yet reached the consultation stage on phase 2. Part of the reason why we published phase 2, although it would have been easier not to do that, was to show our commitment to serving the north, right up to Manchester, Leeds and the east midlands. So I am pretty sure that I will be hearing a lot more from my hon. Friend and others on the question of where the station should be located—Crewe or Staffordshire.
Mr McLoughlin
I met a group of Members from—well, I was going to say Staffordshire—I met two Members from Stoke-on-Trent and one from Staffordshire, and I give way to him.
Paul Farrelly
I thank the Secretary of State for giving way and for his generous offer of coming to visit and see the lie of the land in north Staffordshire and east Cheshire. He will appreciate after our meeting that it is difficult for Members from north Staffordshire to support HS2 as it stands because it may very well, on the current modelling, reduce the number of direct trains from Stoke-on-Trent from 31 a day to just three a day. This knock-on issue is relevant to people from Stockport all the way down to Coventry, as he will see from the amendment. What assurances can he give that the west coast main line in the future, after HS2, will not become the ghost train line running a skeleton service, as the projections currently suggest?
Mr McLoughlin
I met the hon. Gentleman yesterday along with two of his colleagues, and I can assure him that this is about providing extra capacity, not reducing services. I want to consider the points that he and two of his hon. Friends made to me yesterday along the same lines. I do not recognise where he gets his figure of three services per day compared to the present level of service. Of course, that will be part of the consultation and one of the aspects that we will examine fully as we move forward.
Jonathan Edwards (Carmarthen East and Dinefwr) (PC)
The last time I looked, York, Manchester, Birmingham and London were in England. HS2 was clearly an England-only project, yet there will be Barnett consequentials. Unless the Secretary of State can state that there will be equivalent consequentials for Wales amounting to about £2 billion, we will vote against the Bill at every stage.
Mr McLoughlin
I am sorry the hon. Gentleman feels that way, because I believe there will be advantages to Wales as well. As HS2 serves an area up to the north Wales coast, there will be ways in which that can be an advantage. I think he is saying that he will vote against because he is not getting the opportunity to get high-speed services. If we do not get the route as currently proposed, he has no chance of getting any high-speed opportunity whatsoever. He will see, if he looks at the way the plans are laid out, that this can be developed further—even further up to Scotland, as the Bill makes clear.
Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)
The Minister talks of expansion further up to Scotland. When? Given the remarks about no Barnett consequentials, the “when” is not in a decade, but should be here and now.
Mr McLoughlin
I announced last October the work that was already being commissioned by HS2 to take the link up to Scotland, and I am more than happy to have discussions with Scottish Ministers and the Scottish Government about that.
Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)
I suspect that even the Scottish National party does not expect the line to reach the constituency of the hon. Member for Na h-Eileanan an Iar (Mr MacNeil) any time soon, but I hope it will reach my constituency.
Mark Lazarowicz
I would like to believe that it will not be next century and that my constituents will be able to benefit from the line as well. Clearly, they will benefit from faster services in so far as they can use the line further south, but we need to see work being done now and commitments made now to ensure that the further additions from HS2 do not start happening only in 2033.
Mr McLoughlin
The hon. Gentleman makes a fair point. As I announced last October, I have asked HS2 to start doing the work on that, and I hope to be in a position to say more about it in due course. I cannot give him a specific date at this stage because there are some very big issues to address.
I was saying that HS2 will bring about two thirds of the people in the north of England within two hours of London. Its purpose is not merely to keep pace with our competitors, although it is worth pointing out that Italy will soon have 926 miles of high-speed rail, whereas we have just 67 miles.
Julian Smith (Skipton and Ripon) (Con)
Is not Lille in the north of France an excellent example of the benefits that high speed can bring to a city?
Mr McLoughlin
Indeed, and I will say a little more about Lille shortly. I think my hon. Friend may have a copy of my speech, although as I was working on it until not long ago, I would be surprised if he had.
Mr McLoughlin
Mr Speaker, I know that a great number of Members want to speak in the debate and I will give way a number of times, but I am mindful of the fact that you asked me to allow plenty of time for others to take part.
Mr Jim Cunningham (Coventry South) (Lab)
I apologise to the Secretary of State for coming in late and I appreciate the fact that he has given way to me. Can he tell me what Coventry will get out of high-speed rail and, more importantly, what about a decent compensation package?
Mr McLoughlin
I will come on to say something about compensation later in my speech. I think Coventry will get many benefits. The whole west midlands area will get a huge number of benefits from HS2. I want to see councils such as Coventry start working to make sure that they can get the best out of High Speed 2, both from the connections and the way we serve those areas. I know the hon. Gentleman is incredibly concerned about the way we serve Coventry. As somebody who knows Coventry relatively well, I am also concerned to see that take place.
Caroline Lucas (Brighton, Pavilion) (Green)
The Secretary of State is very kind to give way. My point is that not only is the route of HS2 environmentally damaging, but the whole scheme is socially regressive. It is unaffordable to the bottom 50% of income bands and, in effect, it redirects money from the poorest to the richest. How can he justify this reverse Robin Hood strategy when that £33 billion could be better invested in giving us a better rail system for everybody, not just for the privileged few?
Mr McLoughlin
I find the hon. Lady’s position on the issue strange. I should have thought that the Green party would welcome such investment in public railway systems. [Interruption.] I think I had better answer the hon. Lady. HS2 brings a great increase in capacity and I want to say more about that a little later. That is one of the important issues that lies behind the need for HS2. Also, as I point out to colleagues, going from St Pancras station to Canterbury, the first part of the route from St Pancras to Ashford on a high-speed train is a fantastic fast journey, then one hits the Victorian railway network to Canterbury and the journey slows down completely. I want the rest of the country to get the benefit of high-speed rail, not just the area in the south which already has a high-speed service.
Sammy Wilson
And I have no idea how the Minister would extend it to Northern Ireland, but Northern Ireland does not benefit from the Barnett consequentials of this spend, either. Because there is a construction interest, can he give an assurance that when it comes to procurement, there will be no repetition of the mistakes that were made in the past whereby UK-based companies did not benefit from some of the high-spend capital projects, and there will be opportunities for construction firms from Northern Ireland?
Mr McLoughlin
I am more than happy to do that and I shall say more about that later. Crossrail has set a good example. About 97% of Crossrail goods are serviced by British companies, and the Mayor of London is in the process of purchasing a huge infrastructure project, the new London buses, from Northern Ireland. That is very much in my mind with regard to the way I will be dealing with HS2 and talking to the management of HS2.
Damian Collins (Folkestone and Hythe) (Con)
My right hon. Friend mentioned his rail journey to Canterbury. I encourage him to take a different branch on High Speed 1 and travel to Folkestone, as he will see that the investment in High Speed 1 is the biggest single advantage we have in promoting the east Kent regional growth area.
Mr McLoughlin
I am grateful to my hon. Friend, who makes that point from vast experience. It is worth remembering how controversial High Speed 1 was when it was built. I will talk about that a little later. The simple fact is that every infrastructure project—not nearly every project, but every project—is very controversial when it first starts, and in that regard High Speed 2 is no different.
Alec Shelbrooke (Elmet and Rothwell) (Con)
Will the Secretary of State give way?
Mr McLoughlin
I will not be in the position that you are in, Mr Speaker, of having actually counted the number of interventions I have taken, but I will give way to my hon. Friend.
Alec Shelbrooke
My right hon. Friend is absolutely right that all major infrastructure projects are controversial. Would he like to reflect on where he thinks the great city of Leeds would be today had we not built the M1?
Andrew Bridgen (North West Leicestershire) (Con)
Probably in the same place. [Laughter.]
Mr McLoughlin
Indeed, but it would be very difficult to get to, and it would not have benefited from the improvements we have seen there.
I think that the answer starts with a simple point: without HS2, the key rail and road routes connecting London to the midlands and the north will soon be overwhelmed. Even on moderate forecasts, the west coast main line, the nation’s key rail corridor, will be full by the mid-2020s, a point made earlier by my hon. Friend the Member for Shrewsbury and Atcham (Daniel Kawczynski), who wants more services from Shrewsbury to Blackpool. Having served as a Transport Minister in 1989, I know that the fundamental change that has taken place since then is that the pressure on a Transport Secretary now is often to find more services for the rail industry and more rail connections across the country—I was just talking about the west coast main line—and that is despite £9 billion of improvements north of Rugby in recent years. That means investing in the current infrastructure and trying to improve it. There are still problems south of Rugby, which is why Virgin has suffered problems in meeting some of the criteria it regards as important in providing the right kind of service.
Mrs Gillan
Has the Secretary of State had an opportunity to look at the financial results released by Virgin Trains this morning? They indicate that profits are down by 40.5% but revenue is up by 2.8%, which is roughly the same rate as the fare increases, so the passenger increase must be very small. It says that it has now increased capacity by 40%, and this month it started a major advertising campaign to attract passengers. Does that sound like a railway line that is full to capacity?
Mr McLoughlin
No, it sounds like a railway that is providing the services that all colleagues want to see. As I pointed out a few moments ago, in certain areas hon. Friends are pressing for further services that cannot be provided because Network Rail says there is no availability on the existing highways.
Mr Marcus Jones (Nuneaton) (Con)
My right hon. Friend can rest assured that, for a change, I will not be using this opportunity as a pitch to get more fast services to Nuneaton on the west coast main line. Can he assure me that, despite the investment being made in HS2, investment will still be made to continue to improve the services and capacity on the west coast main line?
Mr McLoughlin
Yes, indeed. That is one of the points that will become very apparent with the investment programmes we have over the coming years and that Network Rail will be carrying out. I can assure my hon. Friend that it is not a case of either/or; it is essential to invest in both areas.
David Mowat (Warrington South) (Con)
I would like to add a thought on the capacity question. Will the Secretary of State confirm that over the past 15 years passenger numbers have increased by an average of 5% a year and that the business case for HS2 assumes an increase of 1.6% a year, which is quite a conservative estimate?
Mr McLoughlin
Indeed, and I am grateful to my hon. Friend. Basically, 15 years ago there were about 750 million passenger journeys, and the latest estimate is for 1.5 billion passenger journeys, which is a massive shift that I would have thought my right hon. Friend the Member for Chesham and Amersham (Mrs Gillan) would welcome.
Mr McLoughlin
Now, there is a choice. As a bit of a conservative, I will go with seniority, if my hon. Friend the Member for Wycombe (Steve Baker) will forgive me.
Mr Cash
Will my right hon. Friend accept that, in relation to my constituency, this project goes from top to bottom and is deeply opposed by all and sundry? I have had meetings with thousands of constituents already. Will he accept that, according to the Public Accounts Committee, the pricing is unrealistic, the values for journey time savings are untenable and there has been insufficient analysis of non-rail alternatives? What answer does he give to the Public Accounts Committee and my constituents, who are deeply angered by this?
Mr McLoughlin
To my hon. Friend’s constituents I say this: I understand that a big piece of infrastructure of the size of HS2 will obviously have an impact. I respect and understand that and do not criticise those people who raise objections. I will move on to talk about compensation later. He talks about an area where we are yet to confirm the route. We will be having a full and proper consultation later this year, when he and his constituents will be able to make those points. I will want to see what can be done to help with some of the environmental points. I also point out that part of the west coast main line runs through his constituency, and it, too, was very unpopular when it was built, but it is very beneficial to the area, because I know that he often takes the train from Stafford to get to London. I will give way once more, to my hon. Friend the Member for Wycombe, but then I will have to make some progress.
Steve Baker
In relation to passenger numbers, my right hon. Friend will know the old aphorism that if one subsidises anything, one gets more of it. Will he remind us how much subsidy the rail industry has received over the past few years?
Mr McLoughlin
One of the things we are trying to do is drive out some of the subsidy in the railways to make it cheaper and more affordable for companies, but it is certainly true that there is subsidy in the rail industry. However, we have to think about people being able to get to work and what that subsidy supports. Sometimes the commuter in London, and the commuter in my hon. Friend’s constituency, deserves that support to enable him to get to the jobs that are available elsewhere. One has to be realistic and understanding about that.
I will now try to make some progress, because I have been speaking for longer than I had intended to take for my whole speech. This is not about a choice between upgrading the existing railway and building a new one. Upgrades will not provide the extra capacity we need. The choice is between a new high-speed line and a new conventional railway. The significant additional benefits make high-speed rail the right answer. Of course, big infrastructure projects are always controversial. As I often say, the easiest thing in the world for the Government to do would be not to build HS2 or to commit to it, but the costs of that would be huge.
It would be a cost in jobs. Our modest estimates indicate that HS2 will create and support 100,000 jobs, while the group of core cities predict that it will underpin 400,000 jobs, 70% of them outside London. It would be a cost in prosperity. Some estimates suggest that HS2 will add over £4 billion to the economy even before it is open. The line is estimated to provide around £50 billion in economic benefits once it is up and running. If we do not go ahead with HS2, there will also be a cost in lost opportunities for the towns and cities in the midlands and the north. I am not prepared to put up with a situation in which someone can get to Brussels on a high-speed train line, but not to Birmingham; to Strasbourg, but not to Sheffield; or to Lille, but not to Leeds. We cannot afford to leave the economic future of our great cities such as Manchester, Birmingham, Leeds, Sheffield, Nottingham and Derby to an overcrowded 200-year-old railway.
Mr McLoughlin
I did say that I would not give way any more, but I shall give way to my hon. Friend.
Geoffrey Clifton-Brown
My right hon. Friend knows, as does the rest of the House, that much of that high-speed European railway was built with European money. How much investigation has he done with the European authorities into how much he might be able to reduce the enormous £32 billion cost of the railway?
Mr McLoughlin
We will be looking at that. I will say a bit more about costs a little later, if my hon. Friend will wait. As always, we will look at how we finance, and not necessarily just in respect of the area to which he has referred. We could see private sector investment in some of the stations that we are going to develop. I will say something more about the stations in a few moments.
We will deliver the investment to develop new stations and growth at places such as Old Oak Common in west London, where we will invest more than £920 million in a new hub linking the west country, Crossrail and HS2. At Curzon Street in Birmingham, we will invest £335 million on station developments. Similar investments are due in Manchester, Leeds and other great railway centres such as Sheffield and the east midlands.
HS2 will also allow for significant improvements to the rail service on the existing main north-south lines, providing benefits for towns such as Milton Keynes, Tamworth and Lichfield. It will provide real scope to get more freight on to the railways, which I would have thought the hon. Member for Brighton, Pavilion (Caroline Lucas) would welcome. It will also free up capacity on the M1, the M6 and the M40.
My second point this afternoon is about the Bill before the House. It will authorise essential expenditure on the preparation work for high-speed rail. Planning and building the line will take time.
Natascha Engel (North East Derbyshire) (Lab)
On the point about this legislation being the paving Bill and agreeing the expenditure before the line gets built, will the right hon. Gentleman assure the House that he will publish the receipts relating to everything spent as we advance to building the line, so that we can assure ourselves annually that the money spent represents value for money to the taxpayer?
Mr McLoughlin
I am about to make exactly that point; obviously, somebody else has an advance copy of my speech.
The line will be overseen and delivered by successive Parliaments, which is why it is right to provide Parliament with the opportunity to debate the project. The hybrid Bill will provide additional opportunities for closer scrutiny of HS2. This is the moment for Parliament to demonstrate that it is backing British business, jobs and growth by backing HS2.
Let me say how the Bill will help achieve those aims. Without this legislation, Treasury rules would limit the amount of work that could be done or undertaken until after Royal Assent on the hybrid Bill. That includes design work on the construction of the line, planning the movement of utilities and carrying out ecological surveys. The legislation will also ensure that future spending on the discretionary property compensation is compliant with the PAC requirements.
Dan Byles (North Warwickshire) (Con)
My right hon. Friend is being generous with his time. From the moment the train line was announced, the property market up and down the route has frozen solid. Unless my constituents can demonstrate an exceptional hardship, they cannot sell their homes and move. I implore the Secretary of State once again to reconsider a property bond as the single most helpful move he could make to help alleviate a lot of the suffering being caused right now, today, by the project.
Mr McLoughlin
I assure my hon. Friend that, if he has a little patience, I will say something about that exact point a little later.
The PAC requirement states that when there is significant new expenditure that is likely to persist, authority should normally be sought from Parliament. I appreciate that many hon. Members have concerns about the authorisation of expenditure on early works in advance of the subsequent hybrid Bill. That is why this Bill ensures complete transparency in what we are doing, when we are doing it and—crucially—how much we are spending.
The Bill creates a duty on the Secretary of State to produce an annual financial report on the amount of expenditure incurred, allowing Parliament to keep a check on the costs and progress. I hope that that answers the point made by the hon. Member for North East Derbyshire (Natascha Engel).
Mr McLoughlin
I will look at the detail of that. I am certainly determined that Parliament should be kept well informed and, of course, the company will be open to the scrutiny of the Public Accounts Committee and the National Audit Office reporting to the PAC. There is a way in which the House can keep an eye on the matter.
My third point is about funding. We can today welcome the allocation made by the Chancellor in infrastructure investment. Tomorrow, the Chief Secretary to the Treasury will say more about our plans. I know that in the context of the Bill, the House will want to be updated on the cost of HS2. I can therefore tell the House that tomorrow I will be writing to the chairman of HS2 Ltd to set a target price for delivering phase 1 of the project. That amount is £17 billion at 2011 prices. That takes account of the design and environmental changes to improve the scheme. Those changes include a tunnel from Old Oak Common to Northolt, design changes at Euston station, and a tunnel under the M6 near Birmingham.
As a responsible Government, we must be prudent, which means allowing the right level of contingency. In addition, therefore, we have set an overall indicative amount for the budget for phase 1 of £21.4 billion. For phase 2, it is £21.2 billion, so the total is £42.6 billion at 2011 prices. That includes £12.7 billion of contingency.
Graham Stringer (Blackley and Broughton) (Lab)
At Prime Minister’s questions this afternoon, I asked the Prime Minister why the Government were opposing the continuation of the trans-European network north of London. The Prime Minister clearly did not have an answer, and I will understand if the Secretary of State does not. However, will the Secretary of State find out why we are opposing the extension of that network? While we are in the European Union, that could be cutting off a source of funding.
Mr McLoughlin
I heard the hon. Gentleman’s question to the Prime Minister. Those debates on that whole process are ongoing and still at an early stage. I have some worries and I would want to get clarification before we changed the Government’s position.
Andrea Leadsom
Will my right hon. Friend explain what the £12.7 billion of contingency will do to the benefit-cost ratio? During the consultation period, it was always made clear that the £32 billion was the absolute maximum and contained a vast sum for contingency.
Mr McLoughlin
At the moment, the value-cost ratio is reckoned to be 2.5. I also point out that the BCR tells us some things, but not everything. For instance, the BCR on the Jubilee line was a lot lower than that for High Speed 2. If the Jubilee line had not been developed, a lot of the development in Canary Wharf would never have taken place. The line brought a huge amount of investment into the area and the country. It is important that we are seen to be able to compete with other countries in the global race to attract businesses to this country. The point also relates to the Olympic games, where a contingency was allowed and in fact the price of the games came in below the budget that had been set by the Government. I expect the final costs to be lower than those I have outlined. However, I take on board my hon. Friend’s point about BCR.
Andrew Bridgen
My right hon. Friend has announced that the total budget for the infrastructure plan will be about £43 billion. Does that include the £8 billion for the rolling stock?
Mr McLoughlin
If my hon. Friend will allow me to make a bit more progress, he will find that I am going to be very open with the House and put all this out into the public domain. I want to be as open as I possibly can.
Mr McLoughlin
I give way to my hon. Friend, who I met yesterday—I think, but the days are getting a bit blurred at the moment.
Christopher Pincher
They are getting blurred for us all. I am grateful to my right hon. Friend for giving way and for yesterday meeting my constituents from Hints, Weeford and Drayton Bassett to discuss their concerns about compensation and mitigation. He has rightly referred to the great concern that people have about the compensation and mitigation that is available. In setting a budget for phase 1, will he prevail on HS2 to be as efficient as possible so that money can be saved and spent on mitigations in Staffordshire?
Mr McLoughlin
The meeting that I had yesterday with my hon. Friend and his constituents was very useful, and I gave them an undertaking to look at some of the points they made. I have had varying reports on how some of the public consultations have gone. I am determined that we improve the way in which they are conducted so that people get more reliable answers on the points they are making, and as quickly as possible, although sometimes these things take a lot of time if particular requests are made as to routes and the like. I thank my hon. Friend for behaving very constructively in the points that he is making.
Michael Fabricant (Lichfield) (Con)
I am grateful to my right hon. Friend for giving way, and pleased to be able to follow the intervention by my hon. Friend the Member for Tamworth (Christopher Pincher). Next week I will be bringing people from Lichfield, Whittington and Armitage to see him to discuss, primarily, mitigation. May I ask him about compensation? He will know that with the current route I will have real difficulties with the hybrid Bill; in fact, I will not be able to support it. The Country Land and Business Association says that this stage of the game is the only opportunity to get compensation into legislation so that we can give it to people in my constituency, and indeed in Tamworth, who have been blighted for the past three years.
Mr McLoughlin
As someone who was born and brought up in Staffordshire, I know the area that my hon. Friends are talking about incredibly well. Without the authority of this Bill, we would be in a very difficult position as regards exceptional hardship. I mentioned earlier some of the requirements of the PAC in relation to accountability in spending money on a project without the approval of Parliament, and that also relates to compensation.
Mr Skinner
The Secretary of State has been dealing with blight, and he mentions Staffordshire, but he also knows Derbyshire well, and he knows a village called Pinxton. I spoke about blight when he made his original statement, and I was staggered to be told within hours by a farmer in Pinxton who was selling his farm that as soon as the statement had been made he was told that he would never sell his farm. How is that farmer going to be compensated?
Mr McLoughlin
I will say a little more about compensation in a moment. I accept and appreciate the hon. Gentleman’s point about the impact of naming the route. At the time of HS1 several routes were announced and there was potentially more widespread blight. In HS2 we have tried to be more specific about the routes so that we avoid widespread blight. However, I also say to the hon. Gentleman, who is well versed in how these things work, that we will be going out to consultation on phase 2—I will be announcing that in the very near future—and that will enable his constituents and those of the hon. Member for North East Derbyshire to make their points, find out more information, and possibly propose alternative suggestions and ideas.
Sammy Wilson (East Antrim) (DUP)
The Secretary of State said that there is a contingency provision of nearly 40% in this project. Is that typical of a project of this size, or does it indicate a higher degree of risk than would usually be associated with such a project?
Mr McLoughlin
It is a normal level of contingency that would be put into a scheme of this sort, and it is built in on an internationally based calculation.
This is the right way to plan for the project. In addition, with or without HS2, new rolling stock will be needed on the key inter-city routes linking London and the north over the next 20 years. I hope that deals with the point raised by my hon. Friend the Member for North West Leicestershire (Andrew Bridgen). We are therefore budgeting £7.5 billion for HS2 rolling stock. To put that in perspective, the current inter-city express programme to replace trains on the east coast and Great Western lines, which is creating jobs in the north east, will cost £4.9 billion. The money that I have just announced for the rolling stock for HS2 also includes a contingency of some £1.5 billion.
Good infrastructure is an investment in economic growth. We are investing £14.5 billion to build Crossrail, while £11 billion has been invested in new infrastructure at Heathrow since 2003. Over the period of construction, the cost of HS2 will be less than 0.15% of GDP—I repeat, less than 0.15% of GDP. This is an investment that the country can sustain and needs. That is why tomorrow the Chief Secretary will set out the detailed HS2 funding allocations for the six-year period until 2020-21.
Before I finish, I want to explain what we are doing for those affected by the line. As I said earlier and have tried to make clear throughout this Second Reading speech, I do not dismiss those with objections as irrelevant. We do indeed need to design HS2 carefully, consult properly and compensate fairly. I hope that I can reassure people about why it is right to go ahead. Some have concerns about the impact of HS2 on the landscape. While I cannot deny that a project of this scale will have an effect, I believe that the positive experience of our first high-speed line in Kent shows that the consequences can be managed without wrecking the countryside. For instance, while not a single mile of the M1 is in-tunnel, about 40 miles of HS2 will be in-tunnel. Of the 12.4 miles that crosses the Chilterns area of outstanding natural beauty, 5.8 miles will be in-tunnel and 3.5 miles will be in deep cuttings. No part of phase 2 of the route crosses any national parks or areas of outstanding natural beauty.
It is also important to ensure that proper compensation is made to those affected by HS2. That is why we have introduced the exceptional hardship scheme although there was no statutory requirement to do so. We believe that home owners already affected with a pressing need to move should have recourse to compensation, but without the authority of Parliament to incur expenditure to continue with this compensation, I would need to consider carefully what other mechanisms, if any, we could use. Very soon, we will start a new consultation on compensation.
Mr Clive Betts (Sheffield South East) (Lab)
I have met some of my constituents in Greasbro road in Tinsley in Sheffield, whose homes will be demolished by the scheme. They accept that to a degree, but they ask me whether it is reasonable that people who, for the greater good of the country, are moving out of a home that they do not want to leave will simply get 100% of the market value, plus home loss. Is there no room for the Secretary of State to be more generous and say to people, “You are doing something for the good of the country. Therefore, you should receive more than 100% of the market value”?
Mr McLoughlin
The hon. Gentleman makes a very good point. We have said that we will go out to consultation. I fully accept that the position of his constituents is slightly different because the consultation, in the first instance, will relate to phase 1. It is not possible to consult on phase 2 until we have confirmed the route, but there will have to be a consultation on that. Given that he is the Chairman of the Communities and Local Government Committee, which has an important role in this area, no doubt his Committee will want to consider the matter.
We will consider a range of compensation options, including a property bond, about which a number of Members have made representations.
In building HS2, we need to ensure that we make the best use of British skills and workers. For Crossrail, 97% of the contracts have been won by British-based companies. From 2017, HS2 will create 19,000 engineering and construction jobs.
Andrew Percy (Brigg and Goole) (Con)
Supporting British jobs is essential. The Secretary of State will know that the finest rail in the world is produced in my constituency at the Scunthorpe steelworks. Will he assure me that he and his Department will do everything they can to ensure that Scunthorpe gets a cut of HS2 and that we see those benefits and jobs in our region?
Mr McLoughlin
I can assure my hon. Friend that I want HS2 to be not dissimilar in this respect to Crossrail, which saw 97% of the business going to British companies. However, I am cautious about awarding contracts and making promises from the Dispatch Box. I am certainly a little more cautious than my hon. Friend was in asking me to do so.
Mr Jim Cunningham
Will the Secretary of State meet a delegation from Coventry, as he suggested he would just before Christmas when we met him to discuss this issue?
Mr McLoughlin
I hope the hon. Gentleman does not mind my pointing out that I met a delegation before Christmas. I have met one delegation and I am happy to have another meeting with the hon. Gentleman on the same issue. I recognise that the council has changed its position and I look forward to his changing his position as well.
Today marks an important milestone in the progress of HS2. We must keep it to time and budget, and minimise the impact on residents, the environment and the landscape. We can do that and we need to do that because HS2 is an engine for growth: growth in jobs, growth in opportunities for business and growth in the global race. HS2 is a project for our generation. Now is the time to make it happen. I commend the Bill to the House.
Maria Eagle
My goodness, I find myself in total agreement with the hon. Gentleman.
Despite the importance of this project, there has been a real lack of drive from Ministers—I am not necessarily talking about the Secretary of State—in taking the decisions and delivering the action needed to make it a reality. The former Labour Transport Secretary Lord Adonis set up HS2 Ltd as long ago as 2009. By August of the same year, he had already confirmed plans for a new north-south rail line because he was a high-speed Secretary of State. Nothing has moved anywhere near as fast at the Department for Transport since he left, except the revolving door that has meant I am facing my third Transport Secretary since the election. I hope very much that the Government reshuffle that is rumoured to be on the cards does not deliver yet another change. I am sure that the right hon. Gentleman will agree with me on that.
Mr McLoughlin
I hear what the hon. Lady says, but she should look at the average length of service of Labour Secretaries of State for Transport—they were also fairly rapid through those doors.
Maria Eagle
It is starting to worry me, when I contemplate my political future, that the average length across the parties of Secretaries of State for Transport appears to be somewhat on the short side. I hope that the right hon. Gentleman, while his Government are still in office, and I can increase the average length of time served.
Mrs Louise Ellman (Liverpool, Riverside) (Lab/Co-op)
I am pleased to support this legislation today, which is a significant step in securing High Speed 2. It is important to recognise that HS2 is about having a vision for the future. It is about making a much-needed step change in capacity on our railways. It is about meeting growing demand for rail, addressing congestion on our roads and motorways, and connecting major cities not just across this country and the UK, but potentially across Europe as well. It has the potential to rebalance our economy.
However, it is very important that progress on High Speed 2 does not go ahead in isolation from considering the importance of continuing to invest in the existing classic line. Existing improvements such as the northern hub and the electrification programmes must continue and be stepped up. Assurance must be given that there will be proper access to high-speed rail, and that means that more attention needs to be given to the siting of the stations and connections to them. It is important that no local services be reduced as a consequence of building the high-speed rail line, and it is extremely important that the potential of developing the freed existing lines for both freight and passengers be addressed. That means that more work needs to take place, perhaps through local authorities and local enterprise partnerships working together, to make sure that proper plans are worked out so that the existing lines freed when high-speed rail comes to fruition will be able to be used to the maximum for freight and for passengers.
It is also crucial that the potential for economic development and rebalancing the economy is achieved. That means that we must not make any assumptions that simply building a high-speed line will automatically bring those economic benefits. Work has to be done, again by the LEPs, with the local authorities and with Government support, to develop economic strategies, regionally as well as nationally, to support business in taking advantage of those opportunities. I was very interested to read the results of studies instigated by local authorities. The Core Cities study put forward by major cities in our country identified about 400,000 new jobs that would come as a result of high-speed rail, and Centro’s report, looking specifically at the west midlands area, identified about 22,000 jobs that would come. I emphasise that none of those jobs will come automatically; we need to give attention to economic strategies and support for business to make sure that those opportunities come to fruition.
A number of important issues must be addressed. Concern remains that under the Bill as proposed, high-speed rail may not go beyond Birmingham. We have heard assurances from Ministers but we need rather more than that; we need a commitment in the Bill to make sure that HS2 is not simply between London and Birmingham, and that the rail scheme progresses to Leeds, Manchester and beyond. The time scale is a very long one, even on the current proposals of 2026 to Birmingham and 2033 to Leeds, to Manchester and to other areas.
Mr McLoughlin
I completely agree with the hon. Lady’s point. I wonder, Mr Speaker whether I might use this intervention to clarify something I said earlier, as I am afraid I gave the wrong figure. I said that the contingency was £12.7 billion but it is actually £14.4 billion, so it is larger than I said. I just wanted to take this opportunity, with your permission and that of the hon. Lady, to put the figure right.