HS2: Economic and Environmental Impact

Lord Stevenson of Balmacara Excerpts

Thursday 16th November 2017 Grand Committee

[Lord Stevenson of Balmacara (Lab)]

My Lords, I start by making it clear that I am speaking in a personal capacity from the Back Benches and that I am not speaking, as I often can do, from the Front Bench. That is to reassure my noble friend sitting in front of me because he might otherwise be a little concerned. I also need to declare an interest as a soon-to-be former resident of a house very close to the line, which is in a tunnel going past where I live. I am not going to address the main points made by the noble Lord, Lord Framlingham, although I agree absolutely with much of what he said. The questions that he put to the Minister are ones that need to be answered. I shall look at a point that was touched on by the noble Lord, Lord Freeman.

Given that there are members here of the Lords Select Committee who toiled for a long time over the hot summer, I should say that some of what I am going to say bears on their work, which I salute and acknowledge as being fantastic and a great service to the House. I do this because I know from discussions outside this place that we are about to engage in a revision of the Standing Orders for hybrid Bills, which I think was called for by the chairman at the end of his period as chair of the Select Committee. The revision is to be done jointly with the other place. It is a long and cumbersome process to be done in two stages. The first stage is very much the low-hanging fruit and will result in some good changes that I will allude to, although more things will need to be done. In addition, both Houses need to think carefully about what we are doing when we get involved in this process.

When citizens or external organisations engage with a hybrid Bill, they are engaging with Parliament in a very unusual way. We do not do this very often, and it is important to bear that in mind. We have to make sure that our systems and processes, whether in writing or in person, are not archaic, devised as they were in Victorian times. The jargon and the procedures need to be thoroughly revised. The idea that someone who wishes to raise a point with the hybrid Bill Committee has to do so by praying in a strange way is the sort of thing I am talking about here. It is also important that the two Houses establish without any doubt that they have co-equal powers, as they do on everything else except, apparently, on hybrid Bills, in order that both Houses can act as they see fit in the pursuance of public issues. At the moment it is sort of assumed that the second House has lesser powers. That is unacceptable and we must look at it.

The primary purpose of having a hybrid Bill process has moved on from when it was invented in Victorian times, when largely it seemed to serve the interests and rights of the owners of large plots of land who were being affected by the railway revolution. Nowadays it is effectively a public planning inquiry, so we have to think hard about how we handle it. We should not be doing it as we currently do for all the reasons that everyone understands. I have suggested to the Bill team that is looking at how we deal with these Bills that the fact that this is a planning inquiry means that there is a good case for saying that it should be dealt with as if it were a planning inquiry, with all that means in terms of status, appearance, the right to representation and so on. It is very important that the system allows those who are affected by a project to be heard and that it is more accepting of the various modes of address that individuals who wish to be heard would use. We have to think electronically and digitally as well as people appearing in private.

It is up to the individual to propose how they make their representations. More effort should also be made to ensure there is equality of arms actually in the hearings themselves, should there be the need for public hearings in the form that we have had them in the past. I think that a lot could be done by correspondence and would not involve any public appearance. If there are to be appearances, they have to be grouped, marshalled and conducted in a way that brings out the key points without disadvantaging those who wish to make them in the form they choose. The corollary of that is that where a committee in either House finds that there is an issue that needs redress, the systems under which these redresses are documented, logged and approved must be looked at carefully.

Finally, there is a wider issue here about how we deal with what is called property blight. I do not think there is any doubt that the HS1 Bill team did as much as they could do within the existing law, but I wonder whether that is sufficient. We can all be affected by blight, in whatever form it comes, as can our infrastructure, whether it is gas pipelines, water, a road or a railway. There is merit in a case that was presented to me during the process of the Bill, but I was unable to get any address. I hope the Minister will take this away: if there was a thing called a property blight bond—attached to a property, not a person—it could build up a sort of mutual fund, like national insurance, which could be available to and drawn down by anybody affected by blight. That may sound like a very odd arrangement, but the proposal has come from the insurance industry, which thinks that there is some concern about how one might want to take that forward. I do not expect a positive response to this today from the Minister, although I raised it with her predecessor and did not get a response, so I know that it has been lodged in the department. That applies not only to the Department for Transport but to others as well. I hope that somebody will look at it and take it forward.

High Speed Rail (London-West Midlands) Bill

Lord Stevenson of Balmacara Excerpts

Report stage (Hansard): House of Lords
Tuesday 24th January 2017 Lords Chamber

Moved by

[Lord Stevenson of Balmacara]

2: Clause 1, page 1, line 11, at end insert—
“( ) The scheduled works may not commence until the nominated undertaker has consulted appropriate bodies representing the interests of landowners about its disposal of surplus land policy, and has published a report on that consultation.”

[Lord Stevenson of Balmacara]

My Lords, I draw your Lordships’ attention to my interests as declared at the Committee stage of the Bill and earlier. The subject of the amendment was discussed in Committee and the Minister made a helpful response at that time. The issue was also raised in the Select Committee of your Lordships’ House, as it engages the private interests of many petitioners, and that committee made a strong recommendation, to which I wish to refer. We also now have the Government’s response to the Select Committee, which raises the point that I want to raise with the Minister.

The Crichel Down rules have governed the selling of surplus land following compulsory purchase for over half a century. Although there are said to be problems with them—that is perhaps a matter for another day—they are respected as the rules of the game. This issue has great importance, as there is no real accessible right of review once land has been taken, as judicial review is effectively out of the financial reach of most landowners.

The problem is that HS2 Ltd has decided that, rather than simply follow the Crichel Down rules, as has been the established practice, it will introduce alongside those additional exceptions under which it will not offer, in the first instance, land that it has compulsorily purchased back to the original landowner. These exceptions include, it says,

“where it makes sense to pool the land with adjoining ownerships in a joint disposal”.

What this might mean, of course, is that where HS2 Ltd thinks that it will be better for it financially to keep the land it no longer needs and sell it in a different parcel, it will. It will not be offered back to the owner whose land it was originally. The Lords HS2 Select Committee recognised this and recommended in its report:

“We strongly urge the Secretary of State not to add further exceptions to what is already … a long list of cases … in which the original owner will not be given first refusal to reacquire the land at its then market value. Apart from other more principled reasons, which we need not repeat, it would be odd if one Department of State had its own version of the rules”.


The Government say at paragraph 122 of their response:

“The Promoter is prepared to reconsider the additional exceptions set out in the Information Paper in the particular circumstances of each case”.


It is that phrase to which I would like a response from the Minister. Obviously, if that means that no decisions will be given in general but only in particular cases, there is no certainty for the landowner, who would have to wait each time for HS2 Ltd to decide, presumably towards the end of the time for which it needed the land, whether to keep it. HS2 Ltd would still have the power to keep any land it wanted—for example, for a development—which it would have acquired at much below the market rate. Is that fair?

HS2 Ltd has provided no details of what criteria it would use to undertake case-by-case reviews. If a case-by-case approach is used, these criteria should surely be in the public interest. That makes the case. I look forward to hearing from the Minister. If he cannot agree to review, perhaps he would be prepared to write giving examples of what criteria would be used. I beg to move.

[Lord Ahmad of Wimbledon]

My Lords, as I am sure the noble Lord is aware, the policy regarding the disposal of surplus land received an extensive examination by the Select Committees of both Houses with regard to individual cases, to which he referred, and more broadly when they heard from representative bodies such as the National Farmers’ Union and the Country Land and Business Association. I am sure the noble Lord has noted this, but I say for the benefit of your Lordships’ House that paragraphs 417 and 421 of the Lords Select Committee’s report set out its conclusions in detail.

The Secretary of State is under a general duty to minimise land take for the railway, whether permanently or temporarily. In general terms, any land that is surplus following construction will be disposed of in accordance with the Crichel Down rules. These rules provide for the circumstances in which land acquired by compulsory acquisition, but no longer required, will be offered back to the former owners. The rules have been developed over the course of half a century and have been endorsed by previous Governments. The basic principle is that former owners will, as a general rule, be given the first opportunity to repurchase any surplus land at current market value provided it has not materially changed in character since acquisition, such as new buildings having been built on it.

The rules set out a number of other exceptions to this general principle, which HS2 follows, but have also added two further exceptions to cater for the special circumstances of the HS2 scheme. These exceptions would allow the Secretary of State to retain land acquired for the project where a site is needed for regeneration or where it is needed for the relocation of a business directly affected by HS2. The Select Committee report recommended that the project remove these two additional exceptions. In their response, the Government have noted, and agreed to reconsider, the additional exceptions in the particular circumstances of each case.

I hope the fact that we are proposing to use a very well-established approach for this policy and have further agreed to revise that approach to make it further in line with the original policy demonstrates that this amendment is unnecessary. I hope that the noble Lord is minded to withdraw his amendment.

[Lord Stevenson of Balmacara]

I thank the Minister for that response. I look forward to reading it in more detail in Hansard. For the moment, however, I beg leave to withdraw the amendment.

Amendment 2 withdrawn.

Moved by

[Lord Stevenson of Balmacara]

3: Clause 1, page 1, line 11, at end insert—
“( ) Before the date on which the nominated undertaker commences any works authorised by this Act, the Secretary of State must publish a cost-benefit analysis of the environmental impacts of the proposed works within Phase One of High Speed 2 and connected construction works in the Chilterns Area of Outstanding Natural Beauty.( ) The report must include an explanation of the methodology used to value the savings in environmental impact that would have arisen from more extensive tunnelling.”

[Lord Stevenson of Balmacara]

My Lords, I will speak also to the other amendments in this group. We are at the end of a very long and extensive planning process, which, while not as lengthy as the planning inquiry for T5, I think could be agreed all round to have been quite a marathon. Despite the scrutiny of the public aspects of the Bill in this House and in the other place—and in particular, the excellent and thorough work done by the Select Committees, which was heroic in all respects, and to which I have already paid tribute in Committee, and about which others have spoken again today—I have a view that the public interest has not yet been fully satisfied. So I would like to make a couple of points arising from these amendments.

There are, of course, a number of problems to do with the hybrid Bill process. This has been described in earlier discussions as a hangover from the Victorian era, and it is probably going to be reviewed in the light of the fact that a Joint Committee has been set up of both Houses. We are aware that comments in the Select Committees of both the Commons and the Lords have been also been made, and it is a matter of some regret that your Lordships’ House has not had the opportunity to discuss the report of the Select Committee of the Lords that looked at this Bill in detail. If we had had that chance, some of the points that I am going to make could have come up at that time. I am not going to continue on process issues, however, because I think that they will be the subject of a report from the Joint Committee, and I hope that this House will have a chance to discuss this later on. I myself have submitted evidence, and I know that a number of other noble Lords have done so as well.

My argument in very skeletal form—and I hope that I am not engaging with any of the points that might be raised by members of the Select Committee who are present today, because this is a matter about public interest, not private interest—is that the procedures of the two Houses, more by accident than design, dealing with the public aspects of the planning Bill as in the case of HS2 through the Public Bill procedure, and the private aspects through Select Committees, somehow manage to exclude a full consideration of public interest issues. I want to argue that point in relation to these three amendments.

My three areas of concern are not matters that I expect your Lordships’ House to consider for amendment to the Bill. They were not put down as wrecking amendments; they are not intended to delay the progress of the Bill through to Royal Assent. But I hope that, at some point in the future, they will be open to interrogation by those responsible for delivering the Bill. They might well ask themselves important questions about whether what has been decided in the Bill through the processes that I have described is in the best possible form that it could be.

In Amendment 3, my question is not whether we should open the case for a through-the-Chilterns tunnel but to ask for transparency over how that decision was reached. Everyone will say that the Select Committee process, both in this House and in the other place, has done this issue to death. My point is that it probably has done it to death from the point of view of the private interest—but not from the point of view of the public interest. This is partly because the process engages with private interest from the start, and that tends to drive the way the debate is going. It is also a reflection of where we are today in relation to public bodies funded from public funds, which find it very difficult to put up arguments that are opposed to those that are made by a government department, such as the Department for Transport in relation to HS2. In that sense, there is a danger that the public interest would not be fully considered.

So I have two particular questions for the Minister. We are told in two or three places in the Bill documents that the statutory tests that are required by the Countryside and Rights of Way Act were undertaken by the Secretary of State. This was referred to by the Lords Select Committee. But what precisely were the tests and why is the information that was used to determine these points not made available? Surely it would be in the public interest to be transparent on this point, and I look forward to hearing from the Minister on this.

We read in both Select Committee reports—from this House and the other place—that a full-bore tunnel through the Chilterns AONB was considered, but rejected on cost grounds. If that is so—and I have no reason to doubt that it was done properly—why is that information not published and made available? The amendment states:

“The report must include an explanation of the methodology used to value the savings in environmental impact that would have arisen from more extensive tunnelling”.


Again, this is a matter of public interest, and I would be grateful if the Minister could respond. These requests are not disproportionate; they are in the public interest and should be answered, and I look forward to hearing what the Minister has to say about them. If he chooses to write in more detail, I will be happy to receive a letter from him at a later date.

On Amendment 4, the arguments are much the same —although, because it is a modest project, the costs here are much less. Again, we find that the tiny village of Chetwode, which is in north Bucks, argued persuasively for a bored tunnel, which was refused by the Commons Select Committee “on grounds of cost”. The Lords Select Committee also received this and said that it,

“reluctantly reached the same conclusion”.

We have not seen the figures. Again, that is an issue of public interest, and I would be grateful if the Minister could provide them now—or, if he wishes, in a letter.

--- Later in debate ---

[Lord Ahmad of Wimbledon]

I referred to the specific addition, but I note what the noble Lord has said. I will write to him in that respect and ensure that a copy of the letter is laid in the Library of the House for the benefit of all noble Lords. I reassure noble Lords that this is an area that the Government have considered very carefully. Indeed, it has been scrutinised specifically by the Select Committees of both Houses.

I want to pick up on a couple of points that have been raised. The noble Lord, Lord Stevenson, asked specific questions. I will write to him in detail on some of the issues that he raised, but my understanding is that the response on Section 85 was set out in the Government’s response to the 2011 consultation, which was subsequently published in January 2012. The other issue, of environmental mitigation, is also included in the business case, as was assessed according to the department’s guidance. As I said, the noble Lord raised some specific points and I will write to him in that respect.

The noble Lord, Lord Berkeley, raised the issue of the ideas that contractors may put forward. As I am sure the noble Lord is aware, contractors come under the powers in the Bill, including the limits on deviation. Contractors are also limited by the environmental statement. Within those limits, contractors will be encouraged to be innovative. Indeed, a key commitment to Parliament in the environmental minimum requirements is that we will seek to reduce the environmental effects beyond those in the environmental statement itself. That will be done by innovation, much akin to what the noble Lord suggests.

I reiterate the point that the Public Accounts Committee in the other place and the National Audit Office will continue to examine the costs of HS2 as we move into the detailed design and construction stage and more detailed cost information becomes available. I hope my detailed response demonstrates what has been done, the analysis that has been undertaken and the revisions that have been made in response to issues that have been raised, particularly in the area of the Chilterns. I hope it demonstrates to noble Lords that the tabled amendments before us this afternoon are unnecessary. I underline that these issues have been fully examined, not by one Select Committee but by two. I have already underlined the amount of time they took and detail they went into in their careful consideration. As a Government, we feel that any further cost review at this stage would serve only to delay the railway, which I am sure is not the intention of the majority of Members in your Lordships’ House. I hope that, with the detailed explanation I have given, the noble Lord is minded to withdraw his amendment.

[Lord Stevenson of Balmacara]

I thank all noble Lords who contributed to this brief debate. I expected to be vilified and attacked, and that all happened in due order. I have no comments to make on that—it goes with the burden of trying to stand up for things that you believe in. At least my noble friend withdrew the idea that I might be hysterical, which was only marginally worse than getting a low 2.2 for drafting when we introduced the discussions on the higher education Bill a few weeks ago.

I had a good response from the Minister on the particular questions I raised, and I thank him for that. On whether the statutory duties required under the CROW Act had been dealt with, he said he thought that they had been published. I would be grateful if we could perhaps have a further discussion on that when I have seen the letter that he will write. My impression was that they were not spelled out in the detail that I am looking for. I am sure that we will get to that point, so I am not worried. I look forward to corresponding with him on that.

The second point is on the cost of tunnelling, a question that came up several times from noble Lords. I understand the point that has been made but, as was said, I think, by the noble Baroness, Lady Pidding, to know the cost of building the whole railway is important, but it is not the only factor that we need to know. What savings have been built into the overall cost by not doing other things that would have cost more money or, indeed, less? It is that argument that we are lacking information about. If it is true that the tunnelling is providing environmental benefits, those benefits need to be taken into account in the total value for money—a point that was made. It is that issue that we do not get.

For instance, my noble friend Lord Young raised the issue of the Colne Valley, which was not part of the amendments I put down, although it could have been. He said, as has been said elsewhere, that this was independently assessed and so is okay. But when you learn that the independent assessor was a non-executive director of the Department for Transport, which authorised the review, you wonder whether that is truly independent. Again, the point is: what does that show us? If the figures provided by the promoter are correct, that is one aspect, and it is very useful. But it does not tell you what would have been the cost had it been done a different way, such as by tunnelling. If you do not cost in the environmental benefits, that is an issue.

The Minister mentioned a range of costs for different tunnels. The figure that we most often hear, and therefore the one we are using, is about £485 million—I do not want to go into this in any detail—for the extension of the tunnel from where it comes out in the AONB in the Chilterns to Wendover. It is that figure that I want to measure against the savings that would occur from the environmental benefits preserved—the lack of building of viaducts and the requirement not to build bunds and sound-proofing. That is the figure we never hear.

Lots of people who have been engaged in the process say that they have read the reports and seen the figures. They always say that it is okay, but they never tell us what the figures are. Do noble Lords not find that just a little odd? That is why I say that the public interest needs to be satisfied and why I put down these amendments. However, I am satisfied that we have had the debate that I wanted to have at this stage. I look forward to the letters from the Minister and, with that, I beg leave to withdraw the amendment.

Amendment 3 withdrawn.

High Speed Rail (London–West Midlands) Bill

Lord Stevenson of Balmacara Excerpts

Committee: 2nd sitting (Hansard): House of Lords
Thursday 12th January 2017 Grand Committee

[Baroness Randerson]

My Lords, we need something to deal with this issue, whatever form that “something” takes, and we need it to be independent and to have a responsibility to provide reports and analysis of the issues and problems as they occur.

The committee’s report is very critical of the record of HS2 so far. The committee said:

“The promoter has attracted a good deal of criticism from some petitioners for lack of engagement”.

HS2 Ltd has now made a commitment to put in place a strategy for community engagement, including for vulnerable residents, and has employed someone to deal with community engagement and complaints. However, it has a lot of ground to make up in terms of public trust. Indeed, the final amendment that the Minister put forward in our previous debate, which was a last-minute change of approach in terms of traffic regulation, does not inspire one with confidence that the Government are looking ahead at what they need, or if they are looking ahead, that they have raised the issue in time for full consultation on it. I am not sure which of those two scenarios is the more disturbing. As I say, HS2 has ground to make up. Throughout the project residents have a right to expect a good, simple, straightforward and independent process when concerns arise and they have complaints. I believe that a similar process was followed in relation to Crossrail. However it is done, we need intelligent mediation on this.

[Lord Stevenson of Balmacara (Lab)]

My Lords, I apologise for not being present at Tuesday’s Committee debate due to private reasons. I have subsequently read the report of the proceedings and very much appreciate the contributions made by my noble friends Lady Mallalieu, Lady Young and Lord Rosser. I particularly appreciate the Minister’s contribution as he covered some of the points I would have made had I been present, and did so very well. Of course, now that he has declared that he is a would-be train driver, I am sure that he will be disqualified from any future activities with regard to transport, but while we have him, we should cherish him.

I declare my interest as a resident of Little Missenden in the Chilterns AONB. I have also been involved in some of the campaigns associated with Little Missenden. My private interests were dealt with during a sitting of the Select Committee in your Lordships’ House. However, I think that, to the extent to which they were able to help, those matters are extinguished. Therefore, I am not dealing here with private interests but with the fallout from the issues that occur to me as a Member of your Lordships’ House in relation to some of the processes that I have been able to observe from a variety of positions.

I am speaking to Amendment 30, dealing with a complaints commissioner; to Amendment 31, in my name and that of the noble Baroness, Lady Pidding; and to the associated amendments relating to those. Amendments 30 and 31 relate to issues that stem from some of the processes that have been established to try to progress the Bill through a hybrid arrangement. The noble Baroness, Lady Pidding, made a very good speech in which she tried to identify where the gaps occur from a local perspective. I should have mentioned in my opening remarks that I thank her for speaking on Tuesday on another amendment. Noble Lords may not be aware that she rushed here, almost straight from the airport, and had not even unpacked before she arrived, and yet she was still able to give a very substantial speech, and I thank her for that.

The process we have been through reveals the need for either a complaints commissioner or an adjudicator. I absolutely agree with the points made by my noble friend Lord Berkeley and the noble Baroness, Lady Randerson, on these issues. During the Select Committee phase, the focus is on the personal interests of those who are directly affected by the Bill. The problem is that, even if you are trying to argue a more general public interest case, what you can do is narrowed down by the fact that the opening position and arrangements against which those presentations are made relate to your residence and propinquity to the line.

I am conscious that there are members of the Select Committee here today, and I do not in any sense want to do anything to suggest that I do not hold them in the highest regard or do not think that the report was an excellent summary of the work that they did. However, I found it a very difficult experience, and I am not an inexperienced public speaker. If I found it difficult, it is fair to say that other petitioners will have found it the same. It is a very adversarial process, focusing on private interests, and therefore mitigation, rather than on the broader issues that exist. There is no equality of arms because the process is done in a court-like setting with very highly trained, and presumably quite expensive, advocates against you.

The particularity of the situation in the Lords was that the committee, for reasons that I understand, had decided that it would not hear cases that involved alternative provisions. That meant that most of those who wished to speak, certainly those from the Chilterns, felt that they could not raise all the issues they wanted to. I could go on—I could mention that the lack of action groups and the reliance on parish councils was reflected, but I do not wish to get into that area. I just want that to be noted as the background. Looking back at the process, it seems to me that important issues have fallen by the side. It is not clear to me how those can be picked up, except through this process. This process is dealing with the public aspects of the Bill, but it engages with issues that could be regarded as private, even though they are germane.

I appreciate that this is quite a difficult point to get across and I have no doubt that I will be attacked for it. However, there is a gap around the need to regard what local expertise and understanding can bring to the broader picture. That is not the same as private interests. The issues faced by those trying to petition the Select Committee were no different from the issues faced by those arguing more generally against the Bill.

The Bill will go through—there is no question but that the Government will get their Bill. Therefore, it is now a question of how best to improve it for the future for all people. However, in the absence of the ability to get direct cost information about what is involved, we were constantly frustrated. How could it be that decisions were being reached that balanced the direct costs of building part of the railway and the adverse costs that would occur if the environment were destroyed? This obviously applies to the Chilterns, but there are other areas in which this is also a responsibility. We could not get that cost information: we lacked the ability to do so through the private sector and we have not been able to do it in any public way. That is a problem. I am not saying that were the information to be made available it would change anything, but we cannot get it and the decision is not transparent. There is no information available in the public sector about the trade-off that needs to be made—as I understand it, through the legislative process—between the responsibilities the Government have to maintain AONBs and the need to have the infrastructure of a railway. I have come to terms with the fact that there will be a railway and it will go through the Chilterns. However, I do not have the information to understand better the mechanics of how a decision was reached that it was too expensive to continue the tunnel past Wendover, for example.

There are some difficulties here. It may be that the review which is to be carried out on how we deal with these issues and how lines are to be built will pick up on the point, although I certainly understand that it is probably too late to look at this particular railway. But I want to put on the record that, from my experience, there are difficulties here.

My real point is one I mentioned earlier. It is about the way in which local experience about the problems and the pinch points cannot be built into the process. Some very good examples were given to the Committee in the sitting on Tuesday. The noble Viscount, Lord Astor, in what was a series of powerful and appropriate contributions, talked about the tunnelling at Wendover and the issues that have arisen from knowledge about a cheaper version which simply is not being discussed, along with the issues at Doddershall and Quainton. As the noble Viscount explained, these are all extremely pertinent in the local context, but there are wider issues about whether they are the better solution to the problems being faced by the proprietor in putting forward the railway. Like the noble Viscount, I do not understand how it is that these decisions are taken in the absence of information and in the absence of a process under which better interrogation could take place.

I shall mention two or three other matters although I do not wish to go into any detail and I am not looking to the Minister to make a response to them. However, I have been copied into correspondence from people living near Savay Lake and Savay Farm, which I know the committee heard about at length. As I say, I do not wish to go into the detail, but it seems that there may be a miscarriage here which is of an extent that might require, for instance, an independent adjudicator to take some interest in further down the line. That is why I support the proposal. The question about the haul road in Great Missenden for which there seemed a solution brokered outside the Select Committee in order to ensure that there would be a programme to mitigate the damage to Great Missenden collapsed and there seems to be no way to retrieve it because the system simply does not provide an opportunity to do so.

All these issues—there are others; I could mention the question of more issues closer to Great Missenden at Hyde Heath and further up the line as referred to by the noble Viscount, Lord Astor—show that the detail is not needed to make the general point that there is no body, no person, likely to be able to take account of redress where there is environmental impact as mentioned by the noble Baroness, Lady Pidding, or impacts on communities which occur after the Act is passed but during the process and before the line is opened. That is because the system does not seem to permit it. It will be, as it were, cast in concrete as soon as the Bill gets through. That seems wrong and therefore I agree absolutely with the idea that there should be some form of complaints commission. However, the noble Baroness, Lady Pidding, made the right point when she said that we need something with teeth, and therefore her proposal for an independent adjudicator may be the right way forward.

Before I close on this perhaps I may mention a point that was raised by my noble friend Lord Rosser on Tuesday. Many of the complaints that arose in the original hearings and in both Select Committees were about compensation. I think we have all had experience of how difficult that can be to apply. There is a proposal which I would commend to the Minister to take on board. I do not think that it could necessarily be available on this project, but it might be appropriate for phase 2. It could be of more general interest and I would ask him to take it away because I am not looking for a response today. It stems from a Private Member’s Bill tabled around 18 months ago in the other place. The idea is a property bond approach through a substantial fund that would be controlled by a mutual on the basis that where a person has a property which is affected by some form of infrastructure arrangement, it would not be necessary for the promoters of the scheme to provide a direct contribution towards the replacement costs should that property be required. There is too much detail for me to go through at this point in the proceedings, but I would like to leave the proposal with the Minister and I am happy to write to him and attend meetings if he feels that it is worth following up.

The difficulty that has bedevilled all the compensation schemes in the Chilterns has been around propensity to the line. Setting an arbitrary figure of so many metres before someone can qualify for one or other of the various arrangements was always going to cause problems, and that is a general observation rather than applying just to this line. If it could be possible to arrange matters, perhaps through some form of mutual obligation on all property owners, so that anyone affected by waterworks activity, electricity, railways and roads is covered for the diminution in the value of their property because of the works, that would lift a huge weight from those who are affected by infrastructure arrangements and, I think, it would help the Government to gain support for their projects. The proposal comes under the general idea of a property bond, but it is really related to the blighting effect of infrastructure projects. I commend it to those who might be interested and I will be happy to follow it up later.

[Lord Young of Norwood Green]

My Lords, I do not know where to start on the amendment after that omnibus. However, first, in response to the noble Baroness, Lady Pidding, I do not think that having another independent adjudicator as well as the complaints commissioner is a good idea. It will confuse the situation. I agree with her on the substance of the point: a complaints commissioner should be appointed, as one will be, and that individual should have teeth. However, we really need to correct the notion that there is a “get out of jail free” card simply because we occasionally see a reference to doing everything practically possible in relation to the environment and that there are no requirements on HS2’s contractors to take care of the environment. Hundreds and hundreds of assurances have been given and they really have to be adhered to. I have said that many times to petitioners. We had petitioners from Camden who said, “Oh, there are a few assurances”. There were 100 assurances given to Camden Council and I pleaded with them to look at what is already available. We went over the environmental concerns meticulously. There is not an animal or insect that we have not considered, from hedgehogs to crested newts and barn owls or whatever, and rightly so. We paid them a lot of attention.

It is unfortunate that my noble friend Lord Stevenson of Balmacara was not here on Tuesday because we had the same allegation from the noble Viscount, Lord Astor, that we did not debate this. We did: it did not matter whether they were additional provisions, we debated them at length many times. As for the costing, we did not take the word of the contractors or the promoters. We looked carefully, by an independent assessment, to see whether that could justify their view of extending the tunnel. Do not forget that this tunnel has been significantly extended, as a result of the debate in the Commons, and at significant expense. My noble friend shakes his head; I do not know why. It is not enough because we know what the objective is. He wants to tunnel right the way through it but did not achieve that objective. As for the idea that my noble friend somehow could not make his case, I find that hard to understand. He had plenty of opportunity.

On the idea that we in the Select Committee would somehow pay more attention to the barristers, believe me: we were bored out of our skulls by barristers on many occasions and often paid more attention to people who represented their case effectively, whether they were from the parish council or just individuals. The main thing they had to do was to focus on what they wanted the Select Committee to do, and when they did we supported them. In many cases, that was on compensation as well. It really is wrong to tell this Committee that somehow we did not have an opportunity to look at these issues. We did, again and again. In fact, it is probably lucky that I was not chairing it because I would have been more ruthless. We allowed lots and lots of people to present their case, including in locus standi hearings. We made sure that whether it was on environment or noise, or whatever it was, we gave people the opportunity to make their case—not just once but on many occasions.

It should not be suggested to this Committee that individual petitioners somehow had not had an opportunity to present their case or were browbeaten by the barristers. Of course it was a robust environment; I do not deny that but we took account of it and listened carefully. My noble friend shrugs his shoulders; I do not know whether that means that he disputes the integrity of the committee or our attempts to give a fair hearing to petitioners. I do not know why he does that.

[Lord Stevenson of Balmacara]

I made it perfectly clear that I was in no sense criticising the committee. Obviously, I have let the noble Lord speak, but I was trying to say that there was a gap in the ability of those who wished to make points broader than their private interests, the cause of which obviously did not lie with the committee. I am not blaming the committee, which did exceptional work, and was fantastic. I felt—the noble Lord, Lord Young, can read the transcript; he was there—that I could not say the things I wanted to say. Indeed, the chairman stopped me and said, kindly, that he was taking account of my experience and presence in the House, and would listen to me, but that he wanted me to stop. I cut out two pages of what I was going to say. I am not saying that it was good or bad—it just happened. I am trying to get behind that to say that the committee’s process did not engage sufficiently with the issues that could have been considered. I am trying to play back to the amendment proposed by the noble Baroness, Lady Pidding, as I think that that will continue, and in the future an independent adjudicator would be a good thing.

[Lord Young of Norwood Green]

I am afraid that we will have to agree to disagree, because they did have the opportunity to make wider points on many issues. On the fact that my noble friend was stopped from speaking, I cannot remember precisely why, but it may well be that we had heard those points on many occasions and reiteration did not necessarily produce a better impact for the committee. However, again, I refute the idea that my noble friend is promoting: that this was an unfair environment in which petitioners were not able to address the wider case. The noble and learned Lord, Lord Walker, was meticulous in allowing people to develop the whole case even though we had heard the same issue on many occasions, whether it was the requirement for extra tunnelling or a whole range of issues. Inevitably, if you look at the geography of the petitioners, we heard the same case again and again.

I am not saying that the Select Committee procedure was perfect but I refute that petitioners did not have the opportunity to make their case and address the wider issues. They did. We heard them and wherever we could, if anything, we leaned towards the petitioners. We knew that if people had taken the time and trouble to come to Westminster to make their case, they were entitled to a fair hearing. In fact, the pressure was more on the promoters to prove that the petitioners were wrong than the other way round.

--- Later in debate ---

[Baroness Buscombe]

My Lords, I am grateful to all noble Lords who have spoken to these amendments in the names of the noble Lords, Lord Berkeley and Lord Stevenson of Balmacara, and my noble friend Lady Pidding. The Government share the concerns that noble Lords have highlighted through the tabling of this amendment, and I fully acknowledge the importance of residents and businesses along the route knowing they can seek fair and independent resolution of complaints, if necessary—the word “independent” has come up several times, as it is important.

I will immediately address points made by the noble Lord, Lord Stevenson. I hope that he will recognise, as indeed he said in his speech this afternoon, that the Minister addressed a number of the issues that the noble Lord raised this afternoon during our first day in Committee on Tuesday. However, I shall quickly reference a couple of things he talked about. One is with regard to engagement on wider issues. While he is correct that the Select Committee focuses on private interests, there has been frequent consultation on the scheme at a detailed level, even as it evolved and changed through additional provisions. Consultation responses, which numbered nearly 23,000, were analysed and reported on by an independent assessor appointed by Parliament. Six reports are available in the House Library for the noble Lord to consider. In addition, the noble Lord referenced property bonds, which I shall refer to. I hope he will be reassured by the fact that we will review the full suite of HS2 discretionary compensation schemes later this year, and as part of that, I can confirm that we will consider arguments with regard to a property bond option.

I acknowledge several helpful interventions made by the noble Lord, Lord Young of Norwood Green, and my noble friend Lady O’Cathain, in amplifying, illustrating and helping us through this process by referencing so much that took place during that whole process when they sat on that Select Committee. We must be mindful of the enormous amount of work that they achieved and of course the considerable care they took to ensure that people were genuinely listened to.

The Government want to reassure noble Lords that these amendments are unnecessary, as we are already putting in place comprehensive measures to address these concerns in the guise of a construction commissioner. The construction commissioner will fulfil the requirements that noble Lords are seeking in their proposed amendments, and more besides. The commissioner will mediate in unresolved disputes between the project and individuals or bodies relating to the construction of HS2 and will be able to receive and deal with complaints about the construction of the railway on an independent and impartial basis. Furthermore, the commissioner will have a role on advising on actions the nominated undertaker and contractors can take to reduce the number of complaints they receive. The commissioner will also have a particular role in determining complaints which are made under the small claims scheme—this point makes immediate reference to the question raised by the noble Lord, Lord Rosser—which provides a simple and informal basis to recover losses up to £10,000 for each individual claim.

The construction commissioner will be independent of the Secretary of State and any nominated undertaker appointed to construct the proposed scheme. We have already appointed an interim construction commissioner, Mr Gareth Epps. A permanent appointment—to reassure my noble friend Lady Pidding—will be made following Royal Assent, when the Secretary of State will establish an independent body to appoint the construction commissioner and determine its precise terms of reference, including its regular reporting requirements. The independent body will be made up of a range of stakeholders, including representatives of local authorities affected by HS2 phase one. The commitment to appoint a construction commissioner is a binding one, made to Parliament and recorded in the register of undertakings and assurances. Given that we are already addressing this issue, I hope that noble Lords will accept that legislation is unnecessary and not press this proposed new clause.

With respect to the issue of an independent adjudicator, I note that this amendment was previously tabled during the Public Bill Committee in another place. I am not convinced on the need for an HS2 adjudicator. There are already extensive checks and balances built into the Bill, based on the regime adopted by Crossrail and the Channel Tunnel Rail Link. The regime has proved effective for those projects and we see no reason why it would not be effective for this project. This issue was raised before your Lordships’ Select Committee, which also saw no need to impose such a role. I do not believe that this Committee should either.

This amendment, as well as being unnecessary, is unwelcome, as it would effectively create a quango with all the unnecessary cost and bureaucracy that this would entail. I cannot resist citing the noble Lord, Lord Berkeley, who, at the beginning of this afternoon’s Committee, said on his second amendment that he is not in favour of creating an enormous bureaucratic nightmare. These amendments would create just that.

[Lord Stevenson of Balmacara]

I am sorry to interrupt the Minister’s peroration but, while I understand the point about the construction commissioner, who may well solve a lot of the difficulties raised today, who is going to take responsibility once construction is completed for ongoing concerns and issues? She mentioned current practices in Crossrail, which may have a resonance for us. Without having to spend too much time today, perhaps it would be possible for her to write with details of what that might contain for us.

[Baroness Buscombe]

My Lords, in response to the noble Lord’s question, it will continue to be the construction commissioner. In fact, if I could continue my response to noble Lords it would perhaps be helpful.

There are a considerable amount of checks and balances already established by the Bill and the environmental statement, which protect the natural environment and communities from the impact of construction works. The Bill sets out the detailed controls and planning approvals needed for construction works, such as the limits on land that can be taken for the railway and where and how works can be constructed. There is also a strict envelope of environmental impacts within which HS2 has to be built or it does not have planning permission. Furthermore, there are requirements for the Government to gain approval from local authorities under the planning regime on specific issues, including the approval of construction traffic routes.

Additional commitments have been made during the parliamentary process: literally thousands of individual undertakings and assurances that are a matter of public record. These commitments are either legally enforceable through the courts or matters for which the Secretary of State will be answerable to Parliament if there is any breach of them. These commitments also include those relating to the environmental minimum requirements, which have been developed in consultation with local authorities and others. The code of construction practice, which forms part of these commitments, sets out detailed standards of work that will be adopted by contractors throughout the construction period to control potential impacts on people, businesses and the natural and historic environment. This code also sets out the mechanisms that will be used to engage with the local community and their representatives throughout the construction period.

Let us not forget all the existing legislation that will continue to apply during the construction of HS2. This includes the Control of Pollution Act 1974 and the Environmental Protection Act 1990, which give necessary roles to statutory bodies that will all play a role in regulating HS2. The Freedom of Information Act and all its requirements will, of course, continue to apply to the Department for Transport and to HS2 Ltd. These existing protections will be reinforced by the dual roles of the residents commissioner and the construction commissioner. The residents commissioner ensures that the Government are communicating with affected residents in the clearest and plainest language possible. The role of the construction commissioner is to mediate unresolved disputes between HS2 Ltd and individuals or bodies and to provide independent, impartial decisions.

--- Later in debate ---

Moved by

[Lord Stevenson of Balmacara]

65: After Schedule 16, insert the following new Schedule—
“DUTY OF CARE AND LIABILITY OF SECRETARY OF STATE 1 The Secretary of State and the nominated undertaker, and their contractors and sub-contractors, are, when dealing with persons whose land is subject to the exercise of powers under sections 4 to 19 or whose land is otherwise affected by the construction of the scheduled works, subject to a general duty of care to those persons.2 The general duty of care includes requirements to—(a) act fairly and in good faith at all times;(b) minimise so far as reasonably practicable the acquisition and temporary occupation of land of third parties;(c) minimise so far as reasonably practicable the impact on third parties of the carrying out of the scheduled works;(d) act transparently;(e) for not less than five years after the completion of the scheduled works, provide an information and assistance service for those affected by the scheduled works;(f) pay fair compensation promptly;(g) consult affected persons before and during any process of compulsory acquisition;(h) provide accommodation works during the construction of the scheduled works where reasonably required.3 Notwithstanding any agreement to the contrary between the Secretary of State and the nominated undertaker or any contractor or sub-contractor, the Secretary of State is liable to third parties for the actions of the nominated undertaker and his or its contractors and sub-contractors in exercising the powers conferred by this Act and carrying out the scheduled works. 4 It is the duty of the Complaints Commissioner appointed by the Secretary of State under section (Complaints Commissioner) to determine how the Secretary of State and the nominated undertaker must observe the general duty of care created by this Schedule.”

[Lord Stevenson of Balmacara]

I beg to move this amendment standing in my name. I realise that my following remarks risk throwing petrol on an already blazing flame and that my great friend and former colleague my noble friend Lord Young will probably never speak to me again. However, I say again that I fully acknowledge that the committee did exactly what was required of it and went to extraordinary lengths and made a huge personal commitment in doing so. In no sense was anything I said on the earlier amendments meant to imply anything other than huge admiration for what it has done. I hope that point is well taken. However, I was trying—obviously ineffectively—to argue that the work of the committee, however good, could never address the sorts of issues that I was trying to articulate as they concerned private interests.

I follow the noble Lord, Lord Framlingham, in saying that a 19th century Victorian approach to dealing with the vested interests of private landowners is being used in a situation where it is completely inappropriate. It is not in any sense the committee’s fault that we are today talking about the issues that it may feel it knocked on the head and put to bed. There are still issues out there and they were raised by my new friend, the noble Baroness, Lady Pidding, because she has experience, as I have, of how they will operate in practice. This issue is about structure.

I have submitted evidence on all this to the committee that was set up to look at hybrid Bills. I hope that it will consider that evidence as we go forward. Why have we not had an opportunity to discuss the committee’s report? That could still be done. It is the biggest gap of all. As I understand it, there is no procedure as regards discussing the excellent report, which I have read. I have looked at every piece of evidence the committee received and I have read every transcript of the events, so I am not unaware of its work. I almost died but I did it. However, the report will never be discussed. That seems an extraordinary lacuna in the process of looking at the Bill. It needs to be picked up because there are things in the report which ought to be brought out and discussed. There are things which perhaps we could agree to disagree about but at least they could be aired and ventilated in a discussion. That is a terrible mistake. I move on.

My last point concerns an issue that came up and reflects points made on it both today and on Tuesday.

[Lord Framlingham]

I am sorry to interrupt the noble Lord, but he was not here on Tuesday, when I think that the Minister gave us assurances that the response to the report will be available before the Report stage.

[Lord Stevenson of Balmacara]

I have taken note of and am aware of that, but a response is not a debate. While of course I am looking forward to the response and will read it with considerable interest, it will not give us the opportunity to debate and discuss all the other issues, and that is disappointing.

The amendment before us asks whether a duty of care should be placed on the promoter and the nominated undertaker in relation to the acquisition of land by compulsory purchase and associated issues. The reason for tabling it stems from our discussions on questions of how HS2 has been dealing with the people with whom it has to engage around the acquisition of land in preparation for the construction phase. It is clear that the ability to purchase land compulsorily should always be used with a sense of great responsibility and as a last resort. The ability to purchase the property of another against their will is a really substantial power and one hopes that it will be used and exercised with care.

When the Bill before us today receives Royal Assent, HS2 Ltd will have compulsory purchase powers. However, many people feel that the organisation has not really earned the right to move ahead in the way it has done because of how it has operated before in terms of dealing with them. Those most affected by the scheme seem to be the most upset about it, and that is obviously a concern which perhaps will be picked up by better and more informed engagement, but the more that people push top-down on engagement, possibly the less effective it will be. This duty of care is not about disrupting or delaying the Bill—we are not in any sense trying to do that—but introducing a set of standards against which HS2 Ltd can be judged; that is, how is it treating those who are losing land or property to the scheme?

Examples which have led to this amendment have been reported to me and I am happy to share them with the Minister if he wishes me to do so. I am keeping them neutral at this stage, but there is evidence to back up what I am saying. Examples include landowners finding out about significant changes to the design of a scheme only once the information has been released to the public. In some cases, landowners have had meetings with HS2 representatives only shortly before changes were announced, but at which it was denied that any changes were forthcoming. There has been a refusal to engage in extensive discussions with landowners, and that is obviously very frustrating. If adaptations to the design are going to be made, previous plans will not necessarily follow. This has often meant that almost fake meetings have been set up where discussions have been held, but it was clear that another agenda was in place which had not been revealed to the landowner.

There are examples of the failure to pay properly for access to land. Some landowners have agreed to allow HS2 Ltd access on the basis of a fee, but those fees have still not been paid. That seems to be a very poor practice. Some sense of a duty of care being overseen by an independent complaints commission of the type talked about by the noble Baroness when she addressed the last amendment may be a way forward on this, and I am sure would help, but it may mean that the whole process needs to be stiffened by having a formal duty of care. I do not think that this should be seen as being in any way bureaucratic, because obviously that is not allowed. It also should not be seen as in any sense a way of slowing down the scheme. In fact, in some ways a duty of care might actually set standards that would improve the quality of the process between landowners and HS2 Ltd. It is important to look at whether that might be the right way forward.

There is a lot of uncertainty up and down the line about how much land will finally be taken, for how long, on what basis it will be paid for, and how the timing of those payments will work out. This is not helping in terms of making the scheme a success. It would be sensible to have the basic structure of a duty of care as provided for in this amendment, which I commend. I beg to move.

--- Later in debate ---

[Lord Ahmad of Wimbledon]

My Lords, I thank the noble Lord, Lord Stevenson, for his contributions, and the noble Lords, Lord Rosser and Lord Berkeley, for their questions. To take the final issue first, because that is quite a specific matter, I will write to the noble Lord. I think the noble Baroness, Lady Randerson, raised the issue of what had been heard from residents. I appreciate that that has been received in a positive light and that is taking place, and I hope that that addresses one of the points that the noble Lord, Lord Rosser, raised on that.

On the proposal for the duty of care, the noble Lord, Lord Stevenson, said that he had read all elements of the Select Committee’s reports, and we shall of course be testing him on his verbatim knowledge of them at the end of this afternoon’s proceedings—I shall not hold him to that. I am sure that he recognises— I have said this several times, but I shall not tire of saying so—that the Select Committees in both Houses looked at this issue closely among other areas, and the proposal for a duty of care was considered.

The noble Lord, Lord Rosser, again rightly raised the specific issue promoted by the Country Land and Business Association in its petitions. Let me assure both noble Lords that this matter received lengthy hearings and the Government have now given more than a dozen assurances to the association in response to its concerns. The noble Lord referred specifically to the Select Committee report in this regard, as set out on pages 97 to 99. As I have said previously and will now repeat, we shall respond to those points when we publish our response to the report next week. However, notwithstanding what I have just said, there were no specific recommendations from either committee on the need for such a duty.

As the noble Lord, Lord Stevenson, may well know, the compensation code which I alluded to in our debates on Tuesday, is both understood and has been developed over time. It has been further refined through the Housing and Planning Act 2016. Furthermore, the Government are already working to an existing commitment, reinforced by several assurances on the formal register, to minimise likely areas of permanent and temporary land take where it is practicable to do so. We have also developed a series of environmental minimum requirements, while the code of construction practice already provides a series of protections for those who may be affected by the construction of the scheme. It is already the case that, if contractors engaged in the construction of the railway fall foul of the expected standard of reasonable care and skill, they will find themselves exposed to claims of negligence which will be actionable through the courts in the ordinary way.

To prevent the need for people to seek redress through the courts, as my noble friend Lady Buscombe mentioned in her response to the previous debate, the Government have provided an alternative remedy in the form of the role of the construction commissioner who is able to receive and deal with on an independent and impartial basis any complaints about the construction of the railway. As my noble friend has already said, the commissioner has a particular role in determining complaints that are made under the small claims scheme, which provides a simple and informal basis to recover losses of up to £10,000 for each individual claim. To emphasise that point, the construction commissioner will also be independent of the Secretary of State and any nominated undertaker appointed to construct the proposed scheme.

Wider protections are already included in the Bill, such as the enforcement of planning controls, which will rest in the ordinary way with the responsible planning authorities. We have talked during our various debates today about the important role that local planning authorities and related agencies will have as we build and construct HS2. I am sure that noble Lords will also be aware that previous hybrid Acts referred to in our debate, such as the Crossrail Act and the Channel Tunnel Rail Link Act, did not include the provision of a duty of care to ensure that those affected by the construction of these projects were sufficiently protected. I hope that the noble Lord is reassured by what I have said and is therefore minded to withdraw his amendment.

[Lord Stevenson of Balmacara]

I thank the Minister for that full response. I think that one would be more inclined to accept it if there was a good record of engagement on the part of HS2 Ltd across the range of the piece that we have been talking about today and which I am sure was touched on last Tuesday, but of course the reality is that that is not the case. There have been too many mistakes, too many issues, too much neglect and too much arrogance in terms of assuming that people will just go along with what is being said. These are all words that have been used to me, and I am sure that they are not strange to the Minister’s ears. The point is that this is something that really does have to be handled carefully. On that basis, I beg leave to withdraw the amendment.

Amendment 65 withdrawn.

High Speed Rail (London-West Midlands) Bill

Lord Stevenson of Balmacara Excerpts

Committee: 1st sitting (Hansard): House of Lords & Committee: 1st sitting: House of Lords & Report stage: House of Lords
Tuesday 10th January 2017 Grand Committee

Tabled by

[Lord Stevenson of Balmacara]

11: After Clause 11, insert the following new Clause—
“Phase One of High Speed 2 property bond scheme
(1) The Secretary of State must establish a property bond scheme in relation to the scheduled works.(2) Where—(a) the value of an interest in land is depreciated by the presence of any of the statutory nuisances listed in section 79(1)(a) to (h) of the Environmental Protection Act 1990 (statutory nuisances and inspections therefor); and(b) the nuisance arises from the construction or operation of the scheduled works,if the person entitled to the interest (“the applicant”) makes a valid application within the prescribed period, a property bond for that depreciation shall be issued by the nominated undertaker to the applicant.(3) The Secretary of State must make rules governing the making and approval or rejection of applications for property bonds under this section, including—(a) the contents of an application,(b) the evidence of open market value that is required to be provided,(c) the evidence of depreciation that is required to be provided,(d) any fee for making an application,(e) the process for assessing and deciding the open market value and the depreciation of the land, and(f) any minimum depreciation that is required for an application to be valid.(4) When the interest in land is sold the owner of that interest must decide whether to— (a) redeem the property bond and sell the land for its depreciated value, or(b) sell the property bond with the land and sell the land for its open market value.(5) If the owner of the interest in land decides to sell according to subsection (4)(a) the owner must serve notice on the nominated undertaker of the owner's intention to sell the land together with details of the property bond at least one month before selling the land.(6) If the owner validly serves a notice under subsection (5) then the nominated undertaker must pay the difference between the depreciated and open market value of the land to the purchaser of the land at the date of completion of the sale whereupon the property bond is redeemed.(7) A property bond shall be a local land charge until it is redeemed and for the purposes of the Local Land Charges Act 1975 the nominated undertaker shall be treated as the originating authority as respects such a charge.”

High Speed Rail (Preparation) Bill

Lord Stevenson of Balmacara Excerpts

Tuesday 19th November 2013 Lords Chamber

[Lord Stevenson of Balmacara (Lab)]

My Lords, I declare an interest as a resident of Little Missenden, a small village in the centre of the Chilterns. I live in the village and have done for nearly 20 years. The proposed route currently goes close, but not that close, to the village, and it is tunnelled in the immediate environment of Little Missenden, but that does not stop me having concerns about the way in which the programme has been developed. I thank the noble Baroness, Lady Kramer, for her eloquent introduction of this paving Bill and I particularly thank the noble Lord, Lord Bradshaw, for his concern about the Chilterns, which I listened to with great interest. That is in fact what I will talk about in my brief address.

Much time has been spent in your Lordships’ House recently on the National Planning Policy Framework. In its section on conserving and enhancing the natural environment, it says:

“The planning system should contribute to and enhance the natural and local environment”;

and it gives some examples, the first of which is by,

“protecting and enhancing valued landscapes”.

Later it says:

“In preparing plans to meet development needs, the aim should be to minimise pollution and other adverse effects on the local and natural environment. Plans should allocate land with the least environmental or amenity value, where consistent with other policies in this Framework”.

It continues:

“Great weight should be given to conserving landscape and scenic beauty in National Parks, the Broads and Areas of Outstanding Natural Beauty, which have the highest status of protection in relation to landscape and scenic beauty ... Planning permission should be refused for major developments in these designated areas except in exceptional circumstances and where it can be demonstrated they are in the public interest ... planning permission should be refused for development resulting in the loss or deterioration of irreplaceable habitats, including ancient woodland and the loss of aged or veteran trees found outside ancient woodland, unless the need for, and benefits of, the development in that location clearly outweigh the loss … Planning permission should … identify and protect areas of tranquillity which have remained relatively undisturbed by noise and are prized for their recreational and amenity value for this reason”.

There is clearly a tension here between conservation and what may be claimed by those who support the proposed route for HS2 to be in the public interest. For example, the Woodland Trust has demonstrated that the Government’s preferred routes for both phases of the HS2 scheme will cause loss or damage to at least 67 irreplaceable ancient woods. When the Secretary of State—who was in his place a few minutes ago—announced the preferred route for phase 2 of HS2, he said:

“The scheme would avoid any national parks or areas of outstanding natural beauty”.

So, the Chilterns AONB is now the only AONB along the entire HS2 phase 1 or phase 2 routes that is adversely impacted by the proposed project. Actually, it will be destroyed as the present tunnel erupts into an ancient monument and an ancient wood bang in the middle of the AONB.

The draft environmental statement consultation published on 16 May accepts that a tunnel through the Chilterns AONB would perform better on environmental grounds when compared with the current HS2 Chilterns tunnel option. It accepted that it would also reduce operational noise impacts and, for certain locations, would result in reduced construction impact. In other words, it seems to meet many of the concerns expressed in the national planning framework. It is feasible in engineering terms and would fully protect the only unique area of outstanding natural beauty on the HS2 route; meet local concerns without damaging the overall objectives of the HS2 project; avoid major surface construction at 10 sites in the AONB and the loss of ancient woodland and the Grim’s Ditch ancient monument; and is supported by all the local councils and action groups within the AONB.

The designation of the protected landscape of the Chilterns AONB rests on the unique characteristics of its landscape. The design of the Government’s proposed scheme takes no account of the designated landscape of the Chilterns AONB or the protective provisions of Part IV of the Countryside and Rights of Way Act 2000. Conserve the Chilterns and Countryside has commissioned a study into the practicalities of extending the tunnel from the proposed current termination point to the boundary in Wendover. This study was published in October 2012 and HS2 Ltd was asked to comment on it. The conclusion it reached was that such a tunnel extension was a practical engineering solution, but it declined to pursue it because it is of the opinion that it will cost more than the published scheme.

However, there are other factors to be taken into account here—factors that have so far been ignored but which need to be debated. The analysis undertaken to date has shown that the published scheme affects 60 square kilometres of the Chilterns AONB; the tunnel extension through the Chilterns would affect six square kilometres. The published scheme would result in the loss of 13 historic sites; the tunnel extension would affect one. The published scheme removes 9.2 hectares of ancient woodland; the tunnel extension affects none. With the published scheme, approximately 250 hectares of agricultural land would be lost but under the tunnel extension only 20 hectares would be lost. From the figures that I have given, your Lordships can see that there are other factors to be taken into account. Analysis of these further indicates that the proposed scheme will incur environmental and other costs of the order of £500 million to £750 million, which is about twice the additional cost of building the tunnel extension.

Given the duty of the Government under Section 85 of the Countryside and Rights of Way Act 2000 to,

“have regard to the purpose of conserving and enhancing the natural beauty of the area of outstanding natural beauty”,

the scale of any cost differential between the published scheme and the proposed tunnel extension has to be balanced against the incalculable loss of an AONB—the only one on the line, and the one nearest to London.

In his speech last Tuesday, which has already been referred to, the noble Lord, Lord Heseltine, recalled his long interest in regeneration. He gave the example of Canary Wharf, where he recalled that he had appealed over the heads of his senior Cabinet colleagues—perhaps the noble Lord, Lord Freeman, was one of those—the Permanent Secretary of his department and all the leaders of the London boroughs to the Prime Minister who, he said, “backed me”. Perhaps he should have added “on this occasion”. He also recalled that another Prime Minister backed him against the Department of Transport when he,

“argued for HS1 and the regeneration of Stratford against British Rail’s preference for the Channel Tunnel to hit the buffers at Waterloo and exclude the rest of the UK”.

The noble Lord’s example of the late change of route imposed on HS1 is instructive. In truth, there ought to have been a lot to learn from that episode. HS2 appears to have ignored many of the principles established by HS1. The lower design speed of 300 kilometres per hour allows the line to be twinned with the M2 and M20 motorways through Kent. It used existing major transport corridors. HS1 crosses the Kent AONB at its narrowest point. The published route for HS2 crosses the Chilterns at its widest point. As the noble Lord, Lord Heseltine, pointed out, bringing the main terminus out of London to Stratford brought much needed regeneration to the East End and paved the way for the Olympics. What would be the analogy for HS2, and why is the noble Lord not suggesting that at this time?

While I do not agree with everything that the noble Lord says in his speech, he does echo the recent Armitt report's call for us to do our infrastructure planning differently in future, although appealing over the heads of one's colleagues is probably not what Armitt had in mind. The reality is that the Government will not get their hybrid Bill for phase 1 of HS2 through in this Parliament. Given that the public interest would be better served if the proposals could be evaluated in the context of a fully developed infrastructure plan and a national planning framework of the type outlined in the recent report by Sir John Armitt, why not pause—which seems to be the vogue—the process now? There would then be time to engage in a proper cross-party debate and take a fresh look at HS2 to help the Government build in greater connectivity, sustainability and flexibility, and also help meet local concerns without damaging the overall national objectives of the HS2 project.

--- Later in debate ---

[Baroness Kramer]

My Lords, what a tremendous debate. Every time this issue comes before the House I learn more, which adds very much to the pleasure. I, too, was appreciative that the Secretary of State came to listen to the early speeches; he then had to leave to vote, but I know that he will read the rest of this debate. I know that that information flow to him is very much appreciated on his part.

Obviously, the overwhelming majority of noble Lords who spoke today spoke so strongly and positively in favour of HS2 and the high-speed rail network that once again I feel almost that the comments that I can make are somewhat redundant; they have been almost better covered by other noble Lords who have spoken. I will begin by trying to pick up on the questions from noble Lords who were perhaps more sceptical, and in particular that issue of cost that the noble Lord, Lord Davies of Oldham, mentioned, which was also mentioned by other noble Lords—by the noble Lord, Lord Howard of Rising, in particular, and in a slightly different way by the noble Lord, Lord Adonis.

The cost of the project—the budget—has been set at £42.6 billion. The noble Lord, Lord Howard of Rising, mentioned the figure of £73 billion, which was floated in the Financial Times and some other parts of the press. That is a mischievous number, because of the way in which it is constructed; I was quite sad to see it in a respectable newspaper. It included things like VAT, which obviously comes back to the Treasury and is therefore not a cost to the taxpayer. It also included inflation, although we look at infrastructure projects using current numbers rather than inflated numbers because we do not look at the benefits in inflated numbers. A mischief-making number has, unfortunately, been introduced into this conversation.

I shall say more about cost, because it is important—and what I have to say about it will also address some of the other issues that have been raised. The work that has been done in preparation for High Speed 2, to the point where it is now ready for phase 1 to appear in a hybrid Bill, is far more intense than that for any previous hybrid Bill. I think that that degree of preparation is a good thing, and I am cleared to say that the hybrid Bill will be introduced in the Commons on Monday. That degree of detailed examination and preparation gives us far greater confidence in the actual numbers, particularly for phase 1.

As the noble Lord, Lord Davies, will know—he has read the strategic case—High Speed 2 now estimates that, without any contingency, it could bring in phase 1 at £15.6 billion. The Secretary of State has said that we need to have a little contingency, but he wants to see this come in at £17.16 billion or less. That is the pressure being put on Sir David Higgins, and he feels that it is pressure that he can accept. That is a much crisper number than the more overarching number, including contingency, that we have generally been using. I ask that, as people look at the strategic case, they understand that we are talking about the overarching budget, but that underneath that there is huge pressure to ensure that the cost is pushed down, and we can do that with more and more confidence because of the level of detail that we now have. I hope that that also explains to the noble Lord, Lord Adonis, why there is a generous contingency in all this. The contingency does not reflect the fact that there is very detailed work going on to push the cost down.

That consideration also speaks somewhat to the governance point raised by the noble Lord, Lord Rodgers of Quarry Bank. Sir David Higgins, when he comes in, will make governance and driving down cost two of his highest priorities. The governance programme, which sounds incredibly complex as it is read out in a paragraph, actually reflects a number of bodies that have come together to increase the downward pressure on costs. That is part of the reason why there have been so many parties so absolutely focused on ensuring that the costs of the project have been reduced to the greatest extent possible.

In the same context, Sir David Higgins has said that he will look at delivering HS2 faster. There is an underlying question here, which I picked up from a number of people today—for example, from the noble Lord, Lord Smith of Leigh—along the lines of, “Why don’t we start both phases pretty much at the same time?” The answer is that we have the detailed work to be able to go ahead with the hybrid Bill for phase 1, and to hold that up in order to bring phase 2 to the same degree of preparation would hold back the whole project. We are in a position to move much faster on phase 1. I have heard many people in the House today talking about the importance of going as fast as possible; they compared us unfavourably with France, and I can understand why. We are doing this in phases so that we can get into the ground at the earliest possible date.

Benefits will flow from phase 1 alone. It is true that the maximum benefits will come when phase 2 is completed, but from phase 1 alone there is already an advantage, both in capacity going from London through to Birmingham—on the most congested set of routes that we could possibly have—and also in terms of starting the time reduction, which, as others have said, adds to the connectivity and the potential for development in the north and the Midlands.

The noble Lord, Lord Cormack, referred to the Bill as a blank cheque and asked why it does not have a monetary figure in it. The Bill gives permission for preparatory expenditure and contains a very vigorous reporting process under which the Government must report back annually and record any deviation from budget, and the consequences of that. The wording of the Bill has been strengthened somewhat in the other place, which has put in place a very intense scrutiny process around the budget.

One of the reasons why there is no monetary figure is because this is not just the paving Bill for HS2 but allows us to look at extensions. The noble Lord, Lord Dubs, talked about the importance of going beyond HS2 and looking at Scotland. I was up in Glasgow and Edinburgh just over a week ago, announcing formally the initiation of a study which will look at bringing the benefits of high speed to Scotland. Automatic benefits come from bringing High Speed 2 as far as Leeds and Manchester. In fact, Scotland benefits even from the run to Birmingham. However, taking it beyond that, the study will look at how to maximise high speed on existing rail lines and at potentially building what some people have dubbed “High Speed 3”. This paving Bill creates the context for what in the end will be a high-speed rail network. The word “network” matters in the context of some of the questions about economic growth. Dedicated high-speed trains can run only on high-speed lines. However, in addition, these lines can be used by the classic trains which currently operate on our long-distance services. They can travel part of their journey on a high-speed line and then deviate off on to the west coast main line and various other lines, creating a much more interconnected network.

The noble Lords, Lord Stevenson of Balmacara and Lord Cormack, and, to some extent, the noble Lord, Lord Rodgers, raised concerns about the Chilterns and its highly valued landscape. We all value that landscape; I do not think there is any question about that. However, I think that we have also always understood that there are circumstances in which we have to weigh the significance of infrastructure projects against that value. We must mitigate any effects to the extent that we can. I listed earlier many of the mitigations. Looking much more narrowly at the Chilterns, I say to the noble Lord, Lord Stevenson, that, between Chalfont St Peter and Hyde Heath, which is a distance of 8.3 miles, of which 5.8 miles lies in the area of outstanding natural beauty, the route will be in a tunnel. To minimise the visual impact in the AONB, the following mitigation measures will also be taken: 3.5 miles in cuttings; 1.5 miles in “green tunnel”; 0.6 miles on viaducts; and 1.4 miles with embankments. This means that fewer than two miles of the 13 miles of the route through the Chilterns area of outstanding natural beauty will be at surface level or above. The noble Lord, Lord Stevenson, has asked why we cannot extend the tunnel. Unfortunately, that would require the construction of ventilation shafts and an emergency access station at Little Missenden. Weighing that damaging environmental impact against the current mitigations has led us to the conclusion that we have used tunnelling to the best effect.

[Lord Stevenson of Balmacara]

I am very sorry to interrupt the noble Baroness, and it is a very trivial point, but it would have helped if we had been able to have the meeting that I requested over a month ago. It has not yet happened and if it had, we could have explained this. This canard about having to open up an opening near Little Missenden is not what is proposed. The alternative, which I sketched out for her and which I am happy to present to her in more detail, provides for an opening, required under European law, to be within the 22 miles covered by the AONB. It is near Wendover—in fact, at Wendover Dean—it is agreed by residents, agreed by all the authorities around and does not affect the central part of the Chilterns. This point was raised by her predecessor in a debate more than a year ago, and I tried to correct it then. I am clearly not effective at doing that, so can we please meet?

[Baroness Kramer]

As we agreed earlier, I am looking forward to that meeting and I apologise. Because I am new to the department, it has basically been triage. I regret that we did not have the chance to have that meeting before this debate, but we will have it. As the noble Lord, Lord Stevenson, recognises, the course of the hybrid Bill will address many of these issues.

The noble Lord, Lord Cormack, was very concerned that HS2 is a London-centric project rather than one which will spread economic opportunity out across the country. I could make the case in the other direction— I thought that I had in my opening speech, as had the noble Lord, Lord Adonis, and others, in the course of their speeches. I pray in aid the noble Lord, Lord Smith of Leigh, who from his position in Greater Manchester has been able to represent to this House today the great potential that Manchester and the other great cities of the north and the Midlands have seen in this project.

They are using this opportunity in a very positive way, which perhaps is relatively new as a British approach to infrastructure. So often, we have built an infrastructure project in a silo and left it to see if anything good generates around it. In this case, the noble Lord, Lord Smith, and others are working within the various local authorities and within the various key cities. My noble friend Lord Deighton, too, is working with his task force in order to try to reinforce and support the process. This is a very different approach that will ensure that we garner the economic benefits.

A number of noble Lords, including the noble Lord, Lord Rooker, and the noble Lord, Lord Davies of Oldham, reiterated the idea of the noble Lord, Lord Heseltine, of development corporations. It is certainly true that the Mayor of London would be able to initiate them—that is already within his competencies. However, the Government are waiting to see how local communities in the areas that will be impacted by HS2 will wish to take these issues forward. It is within the concept of devolution that Whitehall should not always know best how each individual area should approach these questions, but I suspect that in many of the schemes and developments that develop, we will look to capture development gain in various ways. Indeed, the Government have already said that they expect all the stations to be built, essentially, with private money, which in and of itself is a development-gain process. So I fully appreciate those comments and I know that they will be studied closely as we go forward.

The noble Lord, Lord Howard of Rising, raised an issue that has been in some of the literature that has been coming through people’s doors and which I would like to take on. He argues that we are not at capacity, citing an example quoted by one of the campaigning organisations, that trains are only 52% full in the evening peak. I think he is referring to a Virgin long-distance train. Certainly, regional and commuter trains are incredibly heavily used. To remove that Virgin train from the train paths in order to allow expansion of regional and commuter traffic would be a drastic option, widely opposed by passengers. There is sometimes no easy trade-off between the issue of train paths and usage at particular times. I also point out that the evening peak is a very well spread peak. During the morning peak we are pretty close to anyone’s definition of being out of capacity as it is, never mind in the circumstances that we will face as we get to the 2020s.

Perhaps I may move on to thank those who spoke so effectively and with much knowledge in favour of this high-speed rail network project. The noble Lord, Lord Adonis, called on the spirit of the Victorian pioneers and the spirit of cross-party working. Both have to inform the way in which we move forward. The noble Lord, Lord Bradshaw, talked from his experience of actually running the four lines that go out of London. That is always an invaluable and incredibly practical touchstone as we move forward in these debates.

My noble friend Lord Freeman brought to us the experience of being the Transport Minister for HS1. That project gave us the confidence to move ahead with HS2, and the lessons that he is able to bring to this debate are therefore crucial. The noble Lord, Lord Berkeley, again reminded us of the freight conundrum that we face. In passing, he also reminded us that it is not just the Chilterns that have an issue but the area around Camden, Euston station and the HS1-HS2 link. We must appreciate and do everything we can to achieve the necessary mitigations. In this case, there is close working now between Camden Council and Network Rail, although many issues have yet to be resolved and answered.

The noble Lord, Lord Faulkner, provided a constant reminder of the lack of alternatives to HS2. The point was put more clearly by the noble Lord, Lord Snape, when he said: if not HS2, what? One alternative is likely to be an exceedingly intrusive motorway. I am afraid that there would be not just one six-lane motorway if we do not build HS2 but probably two. The impact of that on the environment, communities and areas of natural beauty would be something that this House would, frankly, not relish.

I cannot remember whether it was my noble friend Lord Cormack or my noble friend Lord Howard of Rising who talked about aviation as an alternative. Again, the noble Lord, Lord Smith of Leigh, hit the nail on the head; the discussion around aviation capacity is primarily around international capacity rather than around attempts to build up a domestic aviation network of much greater intensity, but I will obviously bow to the Davies commission as it considers capacity issues in the south-east.

I should say thank you to the noble Lord, Lord Lea of Crondall, because on this occasion and previously he made a point that was picked up by others about the cluster potential. That was echoed by the noble Lord, Lord Smith, from the perspective that he and Manchester are looking at development. My noble friend Lord Teverson shared with us reports from Kent of the change from a negative to a positive attitude because of the experience of the benefits of regeneration as a result of HS1.

I am sure that in this whole process there are questions that I have failed to answer. I am reminded that I am coming to my boundary of 20 minutes. I feel that I have had the opportunity to listen to an exciting debate, and if I have not responded to questions we will do so afterwards. Perhaps I may conclude by saying this: let us protect the Victorian spirit that built our railroads, but let us look for an infrastructure that is not Victorian but modern and 21st-century so that we can build the economy of the future. I thank this House and I formally ask that the Bill be now read a second time.

High Speed 2

Lord Stevenson of Balmacara Excerpts

Thursday 24th October 2013 Lords Chamber

[Lord Stevenson of Balmacara (Lab)]

My Lords, I thank the noble Lord, Lord Greaves, for securing this debate and I welcome the noble Baroness, Lady Kramer, to her new responsibilities. I declare an interest since I live in Little Missenden which is directly on the current route and therefore I qualify under a number of people’s acceptance to plead my special case. I will do that a bit, but the interesting thing about being a nimby is that because you spend a lot more time working out why these things are happening to you, you understand the overall picture a lot better than many others. It is for that reason that I want to speak today, not particularly because of the problems in Little Missenden, although there are many, not least the appalling compensation proposals which do not measure up to the rhetoric.

Like the noble Lord, Lord Faulkner, and others, I am a supporter of the case for investing in improving transport services in the UK and in particular of upgrading our rail capacity using the most appropriate technologies. However, as my noble friend Lord Mandelson says, the supporters of HS2 have to do better than rely on dodgy forecasts and puffed-up consultancy reports. This is not an icon; it is a major investment decision for the UK, so it is right that, at a capital cost of £50 billion with ongoing subsidies, everybody should be convinced by the case before it is approved. To achieve that, we must debate and agree a proper economic argument which explains convincingly not only what problem we are trying to solve and why HS2 is the answer but also why other cheaper solutions do not do the trick. The Government have caused a lot of confusion on this point. First it was green and then it was speed, or was it the other way round? Then it was the need to fuel economic growth in the regions, recently clarified as “some regions but not others”. Now it is capacity on the west coast main line and connectivity with HS1, albeit that that constitutes an embarrassingly large gap in the current plans.

This debate is on the economic case for HS2. On the facts so far available to us, there is no doubt that the economic case for HS2 is very weak. A project that costs £50 billion in capital needs a better case and value-for-money justification than we have seen so far. No wonder it has so many critics, ranging from the press to the Institute of Economic Affairs and the TaxPayers’ Alliance, from Alistair Darling to David Davis and many others, including the National Audit Office whose value-for-money report suggests a number of problems with the existing cost-benefit study and the Treasury Select Committee whose report published on the 2013 spending round concludes that only when HM Treasury has decided its own comprehensive economic case for supporting the decision should the Government formally reassess the project before deciding whether to proceed. In other words, there are very substantial blocks to moving forward on this proposal.

So far all we have seen from the Government is the KPMG report, which, as has been said, far from proving the Government’s case, suggests that there will be as many losers as winners in the regions. The problem is that HS2 has been designated solely as a point-to-point railway line, lacking any proper integration with the classic rail network, the UK’s only hub airport or HS1. As such, the project exemplifies the silo approach of UK transport planning where decisions on aviation, classic rail and high-speed rail are taken in isolation, let alone thinking about the implications for things such as high-speed broadband. Current HS2 proposals need to be improved to ensure that the route connects into more of the UK, integrating with other transport networks and co-ordinating with the work of the Airports Commission.

Surely we should not be considering in the early 21st century a transport solution which inflicts serious damage on our natural heritage. These may be old arguments but they are still real. The Woodland Trust has demonstrated that the Government’s preferred routes for both phases of the scheme will cause loss or damage to at least 67 irreplaceable ancient woods. The Chilterns AONB, which is where I live, is now the only AONB along the entire HS2 phase 1 and phase 2 route that would be adversely impacted by the proposed project. Actually, it would be destroyed. The draft environmental statement consultation published on 16 May accepts that a tunnel through the Chilterns AONB would perform better on environmental grounds compared with the current tunnel option. It would also reduce the operational noise impact and, for certain locations, would result in a reduced construction impact. It is feasible in engineering terms and I recommend it to the Minister.

Railways: High Speed 2

Lord Stevenson of Balmacara Excerpts

Tuesday 21st May 2013 Grand Committee

[Lord Stevenson of Balmacara]

My Lords, I declare an interest, as the current preferred route for phase 1 of HS2 goes very close to my home in Little Missenden—close enough to “blight” it, in the words used by the noble Baroness, Lady Seccombe, but certainly not close enough to qualify for any compensation.

I thank the noble Viscount, Lord Astor, for securing this debate and indeed for his valiant work altogether in keeping this issue in the public eye. I agree with everything that he said about the compensation scheme, which I think needs to be completely reworked, perhaps along the lines of the French model mentioned by my noble friend Lord Berkeley. I also thought that the noble Viscount’s points about the way in which the route for HS1 was changed quite late in the day were ones that we might want to keep in our minds as we move towards the paving Bill and then the hybrid Bill.

Like the noble Viscount, I have no objection to HS2 in principle and I support my party’s position on the introduction of this technology. However, taking a fresh look at HS2 may well help the Government, and indeed future Governments, to build in greater connectivity, more sustainability and, importantly, flexibility. It would also help in meeting local concerns without damaging the overall national objectives of the project.

In their announcement of the preferred route for phase 2 of HS2, the Government said that the scheme had been designed to minimise potential impact on settlements and properties as well as on important environment and heritage sites. They said:

“The scheme would avoid any national parks or areas of outstanding natural beauty”,

and registered parks and gardens. Will the Minister, the noble Earl, Lord Atlee, who is also the noble Viscount, Lord Prestwood, say why this approach was not taken for phase 1, which currently destroys the AONB in the Chilterns—including, it should be noted, the village of Prestwood? Indeed, the Chilterns AONB is now the only AONB along the entire HS2 phase 1 and phase 2 routes that is adversely impacted by the proposed project. Although the route is tunnelled from the M25 for approximately 13 kilometres through to Hyde Heath, partially bypassing Little Missenden, the remainder of the route through the AONB to beyond Wendover is on the surface or in cuttings of various depths. This has had a major and unacceptable impact on areas of ancient woodland, a scheduled ancient monument and several rights of way and ancient highways, and damaging impacts on the landscape and tranquillity of a nationally protected area.

Local residents, the county council and local district councils, along with conservation bodies, believe that if the current route has to be retained, the only acceptable solution is a tunnel throughout the AONB, continuing from Little Missenden, under Mantles Wood to Wendover. This would ensure that the villages of Prestwood, Great Missenden, Hyde Heath and Wendover would be given full-tunnel protection, along with the beautiful and unspoilt countryside in which they are located.

I agree with the noble Viscount, Lord Astor, that the Government need to think harder about environmental impacts, and to learn the lessons from what made HS1 acceptable. What he described as the Kent principles should be applied to the Chilterns AONB. In addition to better protecting the environment and unique natural assets, redrawing the preferred phase 1 route would further enable the Government to meet local concerns without damaging the overall objectives of the entire HS2 project.

The HS2 draft environmental statement consultation that was published on 16 May accepts that a tunnel right through the Chilterns AONB would perform better on environmental grounds than the current proposals. It also accepts that the all-through tunnel option is feasible in engineering terms, would reduce operational noise impacts, save landscaping costs and mitigate major surface construction at 10 locations within the AONB, including ancient woodlands and the Grim’s Ditch scheduled ancient monument. The Woodland Trust recognises the potential benefits of using tunnelling through this section of the Chilterns AONB, in particular because it can negate the loss of ancient woodlands.

Perhaps the Minister will explain how he can justify his department’s approach when Defra’s recent forestry policy statement declares:

“England’s 340,000 hectares of ancient woodlands are exceptionally rich in wildlife, including many rare species and habitats. They are an integral part of England’s cultural heritage and act as reservoirs from which wildlife can spread into new woodlands”.

It states categorically:

“Protection of our trees, woods and forests, especially our ancient woodland, is our top priority”.

I repeat: “our top priority”. We understand that the Department for Transport is drawing up a landscape plan for HS2 which proposes the planting of 4 million native trees. Although welcome, these new trees can never compensate for the loss of ancient woodland which, by its nature, is irreplaceable.

The Government need to explain why the HS1 Kent principles are not being applied to HS2 phase 1, and in particular why the preferred route does not follow existing transport corridors, away from the Chilterns AONB. They need to get a better balance between the irretrievable loss of a unique natural landscape and shaving a few minutes off a journey. I would be grateful if the Minister would confirm that a plan to tunnel all through the Chilterns AONB will be included in the final environmental statement report as one of the “main alternatives” that HS2 Ltd has studied, so that the public and in due course Parliament can take this information into account at the hybrid Bill stage.

Redrawing the phase 1 route so that it crosses the Chilterns AONB at a narrower point would help meet local concerns without damaging the overall national objectives of the HS2 project. It would also improve rail access to Heathrow. Given the extent to which this might enable local people to come more readily to accept the HS2 project, it would seem an eminently sensible proposal. It must make sense for the Government to bring as many people along with their plans as they can. If this could be agreed, it would also, as my noble friend said, reduce considerably the time required for scrutiny of the hybrid Bill. I urge the Government to look again at the preferred route for phase 1 of HS2.

--- Later in debate ---

[Earl Attlee]

My Lords, I assure the Committee that I will be supporting and pursuing the HS2 project with great vigour.

I start by thanking my noble friend Lord Astor for securing this debate and I thank other noble Lords for their contributions. A project as significant as HS2 deserves plenty of time for debate, and I am happy to address your Lordships’ questions this evening and, I hope, on future occasions.

There have been some developments. My right honourable friend the Secretary of State for Transport introduced the High Speed Rail (Preparation) Bill, to which my noble friend referred, in the House of Commons on 13 May. It is colloquially known as the paving Bill. We also published the Draft Environmental Statement for phase 1 on 16 May, along with a consultation on the proposed route refinements.

Noble Lords will also be aware of the NAO’s review of HS2. The report is a snapshot from the past and the project has moved on. Economic modelling is just part of the story. If we relied only on modelling, we would not have built the M1, parts of the M25 or the Jubilee line extension to Canary Wharf. We are not building HS2 simply because “the computer says yes”; it is the right thing to do to make Britain a stronger and more prosperous place.

The noble Lord, Lord Rosser, made much of the NAO report. Perhaps I may remind him that the Government are running with a project that his party started, and we are very happy to do so. This is a transformational project that will serve eight out of 10 of the UK’s largest cities, bringing our major cities closer together and two-thirds of people in the north to within two hours of London.

The Government support a direct high-speed connection to Heathrow but it is sensible that further work on a link to Heathrow should await the consideration of the Airports Commission’s recommendations, due in 2015. If it fitted with the commission’s recommendations, we could consult separately later and include the spur in the legislation for phase 2. It could be constructed as part of phase 2 without any impact on the operational railway.

We welcome the outcome of the judicial review, with nine of the 10 challenges being rejected. The one challenge on which the judge found against the Government concerned the 2011 consultation on property compensation rights. The judgment makes clear that it was the process, not the compensation scheme itself, that was flawed. We are giving detailed consideration to the judge’s comments and are planning to reconsult later this year on property compensation schemes.

My noble friend has claimed that properties more than 60 metres from the line would not be eligible for compensation. This is not correct. The exceptional hardship scheme for phase 1 has no defined geographical limit for qualification. However, the EHS is only the start; we will consult later this year on long-term proposals for property schemes that will apply to those outside the 120-metre swathe that my noble friend has described. I have more to say on property compensation.

It is regrettable that the recent judicial review has delayed the introduction of further compensation. However, the Government have been clear that we want to get compensation to those who need it as quickly as possible. While it is inappropriate to speculate on the final package of schemes, I can confirm that the scheme, or rather the consultation, will include a property bond.

The Government are determined to make this an environmentally responsible scheme. We have listened to concerns and worked closely with Natural England and the Environment Agency. However, you cannot build a railway without causing some disruption. The noble Lord, Lord Stevenson of Balmacara, raised the issue of the Chilterns. Following the 2011 consultation, of the 13 miles of route through the Chilterns AONB, less than two miles will be at or above the surface. This is more than a 50% increase in tunnel or green tunnel compared with the original route. It is clearly harder to avoid an AONB near the Home Counties than further north, where there are more possibilities of changing the route.

Mitigation can have its own impacts. A full-bored tunnel through the Chilterns was considered, but would require 10 ventilation shafts as well as an emergency access station. This would be a box constructed within the AONB, around half a mile long, with good road access for emergency services. Only one feasible location for this access station was identified, close to Little Missenden on the A413, requiring the box to be between 40 metres and 50 metres deep, making this a costly and significant engineering challenge, with its own environmental impacts.

[Lord Stevenson of Balmacara]

I am grateful to the Minister for giving way. I think I detected a somewhat aggressive stance in what he was saying. I am sorry that he says that. Does he not accept that there is in fact an alternative scheme, which I mentioned in my speech, that proposes a relief tunnel, exactly as specified and required under European legislation, at Wendover Dean? That has the support of local residents, which is one of the major reasons why it has been put forward. To say that there is no alternative except in Mantle’s Wood, the very ancient woodland that we are most concerned about, which happens to be near Little Missenden and indeed Great Missenden, is wrong, and we are against that. There is an alternative. It is not the best alternative, but it is disingenuous of the Minister to say that there are no possible alternatives.

[Earl Attlee]

My Lords, I am extremely sorry to the Committee if I appeared to be aggressive. I have no intention of doing that at all. However, the noble Lord is raising detailed questions about the route, and my duty is to defend the whole scheme. It will be the duty of Parliament to finally approve the route. At the moment, we are consulting about the route, and we need to do that properly. I will of course read Hansard carefully to look at the precise points that the noble Lord has made.

I turn to the issue of train speed, which my noble friend Lord Astor raised. The route has been engineered to allow for train speeds of up to 400 kilometres per hour in future, should there be a commercial justification for doing so. Operation at up to 400 kilometres per hour would require the consideration of whether improved train design enabled services to operate at that higher speed without additional significant adverse environmental effects. Going fast does not disproportionately increase the cost of the infrastructure, but it means that the alignment has to be more or less straight.

I will try to answer as many questions as I can in the time remaining. My noble friend Lord Astor proposed a station at Bicester, but then he went on to point out the difficulties of accelerating and decelerating from stations. My noble friend made further comments on train speeds. While it is true that some European operators are looking at operating at slightly lower speeds, largely due to maintenance issues, we are not aware of any that are planning to go as low as 225 kilometres per hour. The infrastructure is still built for higher speeds so that, when technology allows, they will be able to return to those higher operating speeds.

My noble friend also talked about the spur to Heathrow. It is important to understand that the spur has not been cancelled but has been paused, and it is too early to predict the outcome of the Airports Commission’s work or any of the decisions taken following that. There are no plans to slow down the progress of phase 1. We need to press on quickly with phase 1 so that we can deliver the economic and wider benefits that higher rail speeds can bring. Does pausing the spur mean no third runway at Heathrow? The Government’s position on a third runway at Heathrow remains unchanged, as set out in the coalition agreement. However, the Airports Commission has been tasked with identifying and recommending to the Government options for maintaining the UK’s status as an international hub for aviation.

My noble friend Lord Astor and others have suggested that, where possible, the route should follow noisy transport corridors such as existing motorways. During the course of the scheme development work in 2009, six main corridors, including the M40 and the M1, were considered. The routes were rejected, primarily because of their adverse implications for journey times and economic benefits, which were compounded by their higher costs. Any environmental advantages that these options offered over the proposed scheme were marginal at best, and therefore not decisive in discounting these routes.

I turn to the issue of compensation. We are clear that we need to have a very good compensation scheme. Most infrastructure projects compensate property owners only at a much later stage of development, when statutory measures apply. For the HS2 project, however, an exceptional hardship scheme has already been introduced while the route is being considered. Subject to consultation later this year, the Government have already stated that we hope to introduce subsequent schemes that go even further than the law requires in order to ensure fair compensation for those directly affected by HS2.

Perhaps it would be helpful if I gave a case study for what we are doing with the EHS, remembering that it is inappropriate for me to comment on specific individual cases. Take a lady living 350 metres from the proposed HS2 route who suffered from an illness that meant she was unable to safely climb the stairs in her home. The lady therefore needed to sell her home to purchase a bungalow but, because of the proximity of HS2, she was unable to achieve a sale at the required price. The lady and her husband applied to the EHS, providing documentary evidence that they met the criteria for the scheme, including that the lady was suffering exceptional hardship. A majority independent panel considered the evidence and recommended that the lady’s home should be purchased from her. This recommendation was reviewed and agreed by a senior civil servant at the DfT. Some 12 weeks later, we exchanged contracts on the lady’s home for the full, unblighted value. So far we have brought 81 properties on to the scheme, spending just under £50 million, and have offered to buy a further 32.

Enterprise Act 2002 (Part 8 Domestic Infringements) Order 2013

Lord Stevenson of Balmacara Excerpts

Wednesday 6th February 2013 Grand Committee

[Lord Popat]

My Lords, this is a short but not insignificant order that will enable the effective enforcement of the Consumer Protection (Payment Surcharges) Regulations 2012. The regulations implement into UK law Article 19 of the European Union consumer rights directive. They prohibit traders from charging consumers above-cost payment surcharges. The Government have had concerns about the level of card surcharges that exceed the real costs in several sectors of the economy. Such surcharges are typically employed as a form of drip pricing, whereby the consumer does not see the final transaction cost until after completing several forms. That can make it more difficult for consumers to shop around. Under the regulations, surcharges for using a particular form of payment will become cost-reflective.

The provisions of the directive need to be implemented in UK legislation by December 2013 and brought fully into force by June 2014. Given the concerns that have been raised about these practices—notably by Which? and in a report by the Office of Fair Trading—the Government have decided to implement this part of the directive early. The payment surcharges regulations were made and laid before Parliament on 19 December last year under the negative resolution procedure. As with this order, they come into force on 6 April 2013. They are not of course the subject of the Motion today but they are directly related.

Article 2 of the order provides for the enforcement framework in Part 8 of the Enterprise Act 2002 to apply in relation to the regulations. This enables the relevant enforcement bodies to apply to the courts for enforcement orders against traders that have engaged, are engaging or are likely to engage in conduct that breaches the regulations, if that conduct harms the collective interests of consumers in the United Kingdom. Taken together, the regulations and this order will provide an effective enforcement regime in fulfilment of the directive’s requirements that adequate and effective means exist in national law to ensure compliance with the provisions of the directive and that penalties laid down for breaches of the directive are effective, proportionate and dissuasive.

Although the payment surcharges regulations implement an EU directive, Article 2 of the order specifies them as a domestic infringement rather than a community infringement for the purposes of the 2002 Act. This is because the obligations in the regulations take effect from April 2013, whereas the EU directive requires them to take effect only from June 2014. The order does not therefore strictly relate to infringements of EU law in the period up to June 2014. For this reason, and unlike the regulations, the order is subject to approval by both Houses of Parliament. I beg to move.

[Lord Stevenson of Balmacara]

Did the noble Lord, Lord Lucas, wish to speak?

[Lord Lucas]

I was just sitting down.

[Lord Stevenson of Balmacara]

The noble Lord’s fluency in so many matters suggested that he wanted to make a contribution. I am sad that he will not do so.

We on this side welcome the regulations. They are a good step in a direction that many noble Lords will recognise has been a source of considerable annoyance and concern to consumers over many years. In that sense, I want to understand better the approach that the Minister is taking here. He quite rightly explained that there are requirements because of the European Union directive to move in this direction. In many senses today is interesting because the earlier order that we considered also relates to a European Union directive. The choice there was to do something at the latest possible moment whereas the choice here is to take forward the timing of the European Union directive and use it to solve a problem that is, as he said, a domestic rather than a European one. That aside, it is still a good decision.

Underneath this is a history that the Minister touched on but is worth recording. This comes from a civil complaint from Which? that was referred to the OFT, and the OFT generated the momentum behind this. Yes, it could have happened because of the European Union directive but there is sufficient pressure internally. That also shows that the measures brought forward under the previous Government to try to provide for more active consumer protection in this area have been successful. As a result of that, we are seeing these changes today.

In the impact statement, to which the Minister referred, the assertion is made that these drip-pricing approaches—you do not know the full cost of what you are buying online until you get to the final screen and suddenly some additional charges are put in—are, of course, a frustration and an annoyance. It is interesting, however, that the impact assessment is quite coy about whether it will be to the long-term benefit of consumers. It is effectively saying, if you read between the lines, that while the changes in the regulations and the consequences of what is being proposed mean that companies will not be allowed to add these additional charges, or drip charges, to the price that they are quoting and we will therefore be able to compare prices better and get more for our money, in fact, the money that is being taken out of the system through drip pricing will probably re-emerge as additional charges within the main cost. The impact assessment says that,

“the overall price level may fall; however this is considered unlikely”.

I wonder whether the Minister has any more information on that. I looked carefully through the impact assessment and I could not see much documentation about what will happen to prices. Does he think that my assertion is overstated or about right?

My final point is that the CRD—and the regulations implementing it—covers most retail sectors, but does not include some. Will the Minister please explain what is going to happen in areas which are not covered by the CRD or by these regulations? What measures are the Government considering to bring forward in future years to deal with those?

[Lord Kennedy of Southwark]

My Lords, I thank my noble friend for that. I should have jumped in before him, so I apologise for not getting this right. I wanted to ask one question about the impact assessment and the opt-out for small businesses. I do not believe in extra burdens and regulation for businesses, but it seems odd to me that we seem to be saying that, by allowing business with fewer than 20 people to opt out, they can carry on overcharging customers. It seems odd and unfair that they will still be able to make these charges, but generally I think that this is a great order and I am delighted that it is being brought in.

Publishing Industry

Lord Stevenson of Balmacara Excerpts

Wednesday 6th February 2013 Grand Committee

[Lord Stevenson of Balmacara]

I thank my noble friend Lord Dubs for initiating this debate and all noble Lords for their contributions, which have been of a very high standard indeed. As my noble friend Lady Rendell said, this is a very timely debate, and we appreciate that. My noble friend Lord Giddens warned us that this is an industry in which conditions are worse than we think. They may get much worse before they get better, if indeed they do. We need to bear in mind also that this is a complex industry, like all creative industries. With some notable exceptions, we have focused today mainly on the creative side—the agents and publishers—but we also have to think about the retailing end: the designers, the marketers, the logistics and, of course, the concept of electronic publishing, which is an underlying thread here.

This debate has really been about whether the current leadership that this country’s publishing industry deservedly has can be sustained and whether there will be growth. There have been a very large number of questions for the Minister and I do not intend to cover them all. I hope that he will be able to give a particular mention to them all but, if not, that he will write to us about them. I think that there will be too many, even for the time that he has been allocated. However, from the questions that were raised, the first was on this vexing question of the public lending right, which is so important to authors and publishers. Of course, it does a much wider job by raising people’s interest in books and writing and, more generally, in education. Will and can that be extended to e-books?

On VAT, the differential between the printed and electronic versions is obviously a major issue. What approach are the Government taking on this? I know that the Minister will say the usual thing when he comes to reply: that taxation is a matter for the Chancellor of the Exchequer. Of course it is but, six weeks out from the Budget, surely budget submissions will have been made. Can the Minister confirm that DCMS has raised this issue with the Chancellor and is making the right sort of noises, along the lines that he has heard today?

On copyright, the issue that comes up time and again is whether the Government have got their approach right, along with the question of who is actually in the lead on this issue. In debate on the Enterprise and Regulatory Reform Bill, the noble Viscount, Lord Younger, confirmed that he was the Minister for Intellectual Property and therefore has, within BIS,

“a role to champion the IP system as a whole”.

Indeed, he was proud of the fact,

“that no other country has such a post”.—[Official Report, 28/1/13; cols. GC414-16.]

He felt that that solved the problem. However, what then is the role of DCMS in relation to copyright? Perhaps the Minister could say a few things about the approach that he is taking in this matter and how the department gets its point of view, which we note to be significantly different in terms of discourse from that which is currently being led by the IPO. There is much more sympathy with some of the points that have been made today. It would be a pity if that was being boxed out by government structures.

On the key issue of education and the circularity of the approach that has to be taken across libraries and supportive reading, and about the role of English more generally—but particularly on reading and writing and on creative work in the EBacc—it would again be useful if the Minister could explain what DCMS’s role in that has been, whether meetings have been taken and whether it is making progress.

Finally, can the Minister say a bit more about the general role of the DCMS in this industry? Many of the issues that we have discussed today are, as I have said, largely in the gift of BIS and not that of DCMS. Can he therefore explain a bit more what its role is?

Railways: High Speed 2

Lord Stevenson of Balmacara Excerpts

Wednesday 11th July 2012 Lords Chamber

[Lord Stevenson of Balmacara]

My Lords, I congratulate the noble Viscount, Lord Astor, on securing this all-too-short debate this evening. I can only imagine the frosty reception around the family dinner table when he announced that this debate was taking place tonight, particularly after the revelations in “Mrs Cameron’s Diary” in this morning’s Guardian.

I declare an interest in that my family and I live in Little Missenden, which is only a few hundred metres from the proposed line. It runs through the very heart of the AONB designed to protect the Chilterns. It may be said that, as a result of my living so close, my comments should be discounted. However, it is the very fact that the line runs so close to our village that made me take a close interest in the woeful economic case and the very sketchy consultations carried out to date. I put on record that had there been an overwhelming case in the national interest for proceeding with the line, we would have accepted the situation. However, this is the wrong solution to the perceived lack of future passenger rail capacity, it is in the wrong place, and the project is unaffordable now and will be in the immediate future.

In his excellent speech, the noble Viscount, Lord Astor, gave a withering assessment of the economic viability, value for money and benefit-to-cost ratio of the High Speed 2 line. I agree completely with his comments and conclusions. To strengthen the point made at the end of his speech, I suggest not only that the Major Projects Authority—the MPA—should be asked to report on the HS2 project and publish its results, but that the OBR should take a look at the overall economic impact of the scheme.

Despite my antipathy to the present scheme, I am not against investing in our rail network. I could support a high-speed rail network, but only if it had the following characteristics. The whole high-speed network should be planned coherently from the start and include east and west coast links to Scotland, Wales and the south-west. Greater priority should be given to the need to switch passenger traffic from air to rail, and to linking directly with HS1 and the Channel Tunnel. This would imply routing the line through Heathrow and considering a second hub at Stratford, as recently suggested by the Labour Party.

Serious attempts need to be made to limit the damage done by a new rail line by respecting our heritage and countryside, whether designated or not, by sticking to existing major transport corridors and being prepared to spend what is necessary to provide proper twin tunnels. For example, in the Chilterns, it is an outrage that the current plans do not provide for such a deep tunnel. I urge Ministers to look very carefully at the proposals put forward by groups such as the Conserve the Chilterns campaign group. The Government need to come up with a proper compensation package that reflects the real costs borne now and in the future by those with property blighted by the plans and whose lives will be adversely affected by the construction and operational phases for 20 or more years.