HS2: North-west of England

Andy McDonald Excerpts

Tuesday 11th October 2016 Westminster Hall

[Andy McDonald (Middlesbrough) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Owen. I thank my hon. Friend the Member for City of Chester (Christian Matheson) for securing the debate. He passionately put forward his case on how HS2 can serve the interests of his constituents and the wider north-west. I echo his sentiment that HS2 has Labour’s backing. We welcome infrastructure investment, but part of the case for HS2 that convinced so many was that it was not simply another project designed for the benefit of the south-east but that it would benefit regions across the country.

Crewe is already a gateway station for the north-west, with regional and long-distance connections to the wider north-west, the east midlands and Wales, but there are significant capacity constraints that have an impact on reliability, which has been below industry targets, and there are bottlenecks at Colwich junction and around Stafford. This is also a problem for national freight operators, with much freight traffic on the west coast main line routed through Basford Hall yard, south of Crewe, and 43% of rail freight journeys using the west coast main line at some point.

The phase 2a link will help provide much needed additional capacity for freight and will improve reliability for commuter services, so it should be welcomed that the Government have brought forward the opening of the phase 2a link to 2027 as that will provide benefits to the north-west and beyond. However, it would be disappointing if a Crewe hub were not developed, as the fact that it is already a regional hub provides a springboard for further developing and improving connectivity with conventional rail. The benefits of stopping more trains at Crewe are clear, as expressed in David Higgins’s “HS2 Plus” report.

We welcomed the Government’s decision to accelerate the section of route from the west midlands to Crewe so that it opens six years earlier than planned in 2027, bringing benefits to the north sooner than initially thought, but the primary concerns are the rumours that phases 2a and 2b might be downgraded or delayed as the project increasingly comes under budgetary strain.

[The Parliamentary Under-Secretary of State for Transport (Andrew Jones)]

indicated dissent.

[Andy McDonald]

I see the Minister shaking his head—he can give me that assurance, then. In the words of the Public Accounts Committee report,

“the cost estimates for phase 2 are still volatile”.

There was a cost estimate from the Department for Transport that was £7 billion over the agreed £28.5 billion funding, and then £9 billion of potential savings were subsequently identified. We know that much of the savings are a result of more detailed and accurate estimates being applied, but the worry is that without a confirmed route and a firm cost estimate, and with budgetary pressures, the planned savings on phase 2 will be delivered by adversely affecting the expected benefits of the programme to the north, including the north-west.

I know the Minister will wish to reassure the House that he intends to preserve the integrity of HS2 to the north, because that will tackle the lack of capacity south of Birmingham and the poor connectivity not just between the region and London but within the north. It is crucial that we ensure that HS2 remains an infrastructure project that delivers for the whole country.

We have seen the uncertainty surrounding the proposed route changes in south Yorkshire. We do not want to see the same uncertainty on the western leg. It has been rumoured that if costs for the existing scheme cannot be brought down, one option under consideration is to delay or abandon altogether the section to Manchester and build the line only as far as Crewe, or to delay the line—an HS2 spokesperson said that the Treasury is taking the position that that nothing is ruled out.

I echo the concerns of my hon. Friend the Member for City of Chester and stress the importance of delivering a hub station at Crewe, which will benefit the sub-region, the north-west and the country as a whole, and of phase 2b, which ought to transform connectivity in the north and through the country. It would be disastrous for the north-west and make a mockery of the so-called northern powerhouse if phase 2 were to be downgraded.

We eagerly await the Government’s proposals for HS2 phase 2, but whatever the forthcoming route proposals, they must ensure that HS2 is an infrastructure project that delivers for the whole country. I hope the Minister can provide reassurances to that effect.

--- Later in debate ---

[Andrew Jones]

I have absolutely no doubt that when we consider those services we are all thinking ahead. I entirely buy the argument that transport investment is a driver of economic growth and, indeed, social progress—whichever mode of transport we are talking about. The Government are not buying trains because we like trains; we are buying them because they facilitate economic growth. That is the same with buses and social progress.

Taking HS2 to Crewe will play an important part in turning the town around. It is already a hub and it is also a town that is in need of investment, but HS2 is not a silver bullet in itself. We need to ensure that HS2 drives regeneration, not only in the places that it serves directly but far more widely. For the economic growth benefits of HS2 to be realised and to spread, local partners have an important role to play.

It is fantastic to see the north-west making such excellent progress in its plans for the region. The northern gateway partnership is already developing its growth strategy. That work, which is aiming to deliver around 100,000 homes and 120,000 jobs, will ensure the regeneration benefits of HS2 are felt right across the region. I have met with the combined authority, Transport for Greater Manchester, on a number of occasions, and I have done the same with the west midlands. It has been fantastic to see the ambition that those areas have for regeneration, recognising that, when HS2 arrives, it will present them with significant opportunities.

[Andy McDonald]

The Minister said it is too early to “lock down” the level of service, but he will undoubtedly appreciate that, if we cannot establish a bare minimum level of service, this becomes a rather pointless and redundant exercise. If he is not able to do that now, will he give some indication of when he will be able to give a little bit more detail about the basic minimum level of service we have been discussing this afternoon?

[Andrew Jones]

I will come on to timing a little later on. I turn to the matter of the north Wales main line and the work that is being carried out by the North Wales and Mersey Dee rail task force. I welcome its establishment and it is doing a good job of making the case for rail modernisation in north Wales and of developing wider growth plans for the region. This is an opportunity for north Wales to make the best case for investment in rail infrastructure and services. It is vital that a shared local vision is brought together with a defined set of prioritised outcomes based on economic growth, journey times, connectivity and modal shift. We will continue to work closely with that taskforce and with the Welsh Government to provide advice and assistance and to consider what can be jointly accomplished. We want the taskforce to advise us effectively on options for enhancements, including electrification, to address the regional economic needs and, of course, on the value of those options.

Many hon. Members have commented today. I will first respond to my hon. Friend the Member for Eddisbury (Antoinette Sandbach), who has raised concerns with me previously regarding the route north of Crewe, given the ground instability problems associated with the route crossing the Cheshire saltfield. I have been down that salt mine as part of looking at the winter preparations for the road network last year. I have to say it was a very interesting place to visit. I am aware of the scale of this enormous undertaking and I reassure my hon. Friend and other hon. Members that we are not ignoring that risk. HS2 Ltd has carried out surveys to better understand the geological issues in Cheshire and has commissioned further studies from third-party organisations. We are looking at a range of options in that area.

At this stage, I cannot provide any further information about where that part of the route will run. My right hon. Friend the Secretary of State will make an announcement on that during the autumn. My hon. Friend the Member for Eddisbury also made a further point about blight for residents affected by the potential routes. I will look at those cases with every sympathy, and I know she will write to me so I will look out for her letter.

I thoroughly agree with the points made by the hon. Member for Stalybridge and Hyde (Jonathan Reynolds) on transport being a driver of economic growth, on how capacity is necessary and on how, looking not too far ahead, we will have a rail network that is full, which is something we have discussed previously. He will not be surprised that we are in further agreement. To my hon. Friend the Member for Weaver Vale (Graham Evans), I say this is not a white elephant: it is a scheme that is a fundamental and critical part of our national infrastructure and it will happen.

To my hon. Friend the Member for Cheadle (Mary Robinson), I say yes, the debate really has moved on; it is not if but when this happens. The debate we should be having is on how we maximise the benefits that will flow from HS2 when it arrives. To the hon. Member for Wythenshawe and Sale East (Mike Kane), I say that I completely recognise that Manchester airport is thoroughly important, not just for Manchester but for the whole of the north of England with its power to connect it. I can also confirm that we are developing plans for HS3 alongside HS2; they are not separate schemes being developed in isolation. We are looking at integration of the two.

I can confirm that we have had absolutely no loss of ambition. I will run through some timing: on phase 1, we hope the Bill will complete its passage through the Lords very soon and we hope to start the build in the spring. The necessary work to prepare the Bill for phase 2a is underway and we intend for it to start its parliamentary journey next year. On phase 2b, the Government will announce our proposed route from Crewe to Manchester and from Birmingham to Leeds, south Yorkshire and the east midlands later this year. That will be an important moment and will begin to make the project far more tangible.

This is a project that is from the UK and for the UK. It is all about national benefits, including extra capacity on the network and developing skills, and companies from right across the UK will be able to benefit from the significant amount of work required. We view this as a critical part of our national infrastructure and of building a transport network and an economy that works for all. We have had a positive debate today. Though it has been focused on the north-west—and it is clearly right that this presents a huge opportunity for the north-west, for the city of Chester and for the whole region—it is a national project and we have to view it in that way.