High Speed 2 Debate

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Department: HM Treasury
Wednesday 10th July 2019

(4 years, 9 months ago)

Westminster Hall
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Kelvin Hopkins Portrait Kelvin Hopkins (Luton North) (Ind)
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It is a pleasure to serve under your chairmanship, Mr Hosie. I congratulate the right hon. Member for South Northamptonshire (Andrea Leadsom) on securing this important debate, and on her excellent speech, with which I strongly agree.

I state categorically that I believe passionately in our railways; I have been a daily commuter for 50 years and I have always believed in their future. I continue to support strong investment in our railways, but not in HS2. The alleged business case for HS2 has two essential components: cost and need. The costs have been ballooning, dwarfing the claims of £50 billion by multiples. Even the rumoured likely costs now are way below what an eventual bill would be. With more time, I could give some explanations as to why, but I wish to focus on the supposed need and the likely passenger demand for HS2.

The business case is based on a frequency of 18 trains an hour leaving and reaching London. HS2 has grudgingly agreed that a figure of perhaps 16 trains an hour in off-peak periods might be appropriate. The trains would be some 400 metres long, probably with 16 carriages; they would be rather similar to Eurostar trains, which are 20 cars long, and capable of seating 80 passengers per carriage. That is well over 1,000 passenger seats on each train. With 18 trains an hour over the day, that would mean in excess of 200,000 passenger seats going to and from London. That is a significant proportion of the total population of Birmingham; it is complete nonsense. In any case, 18 trains an hour is just not possible. At a meeting of the Select Committee on Transport in 2011, SNCF witnesses from France with some knowledge of high-speed TGVs were astonished at the 18 trains an hour figure, saying it was impossible, and that 12 trains an hour was the absolute maximum.

HS2 has been in a mess and a panic for some time about costs. It asked if it would be possible to terminate trains at Old Oak Common and avoid the horrendously expensive costs of tunnelling through to Euston. The idea would be to transfer passengers to Crossrail at Old Oak Common. That would be impractical because of the vast numbers involved. Up to 20,000 extra passengers on Crossrail every hour is not a serious proposition. All this is just not credible. If HS2 goes ahead, we will surely see expensive trains on a very expensive track rattling around the country with very few passengers on them.

I want to end on a positive note. There are some serious and much-needed alternatives to HS2, and I have written a paper setting out some of them. I submitted my paper, prepared with the advice of a range of friends in the railway industry, to the House of Lords Economic Affairs Committee for its inquiry into HS2. I also submitted it to the recent Great British transport competition, supported by the TaxPayers Alliance, and was pleased that one of my proposals was selected as one of the winning schemes.

Most significantly, there is the GB freight route, with which I am involved and to which the right hon. Member for South Northamptonshire referred. This would be a freight priority line from the channel tunnel to Glasgow, built to a large-loading gauge and almost entirely on railway land, capable of accommodating full-sized lorry trailers on the trains. It would take some millions of lorry journeys off our roads every year, with immense benefits. It would link all the majority economic regions of Britain to each other, and to the continent of Europe, and Asia beyond.

There are several serious rail schemes that should be adopted and, if HS2 does not go ahead, all the schemes paused and abandoned by Government in recent times could simply be readopted. Electrifying the whole rail network, with massive improvements to railways in the north in particular, where rail has been disgracefully neglected, could and should go ahead. These schemes could provide many thousands of jobs very quickly, with track work ready to go. This would be money well spent in every sense.

We should reflect on the sensible Eddington report, which recommended rail investment in and around our major cities and conurbations, where real passenger need is most concentrated.

Barry Sheerman Portrait Mr Sheerman
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Does the hon. Gentleman not realise—I think he does—that those of us in the north of England just want reliable and reasonably speedy connections between the towns of the north, and would love this sort of investment, sooner rather than later?

Kelvin Hopkins Portrait Kelvin Hopkins
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I agree with the hon. Gentleman; absolutely. Even within the northern region there are some dreadful train services. There are old charabancs on rail tracks that are a disgrace and should have been replaced, and the lines have not been electrified. They should have been.

Laura Smith Portrait Laura Smith
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It is key to note that for Northern Powerhouse Rail to happen, we have to have the HS2 infrastructure in place.

Kelvin Hopkins Portrait Kelvin Hopkins
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I think I have made my point. I am running out of time, Mr Hosie. I could go into much more detail, but on this occasion perhaps I should conclude here. I think the case against HS2 is overwhelming. I look forward to a sensible Government abandoning it and reinvesting in all the other schemes that are so much more beneficial and needed.

None Portrait Several hon. Members rose—
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Rachael Maskell Portrait Rachael Maskell (York Central) (Lab/Co-op)
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What can I say after that contribution, other than that it is a pleasure to serve under you in the Chair, Mr Hosie? I also thank the right hon. Member for South Northamptonshire (Andrea Leadsom) for bringing forward today’s debate in a very candid way.

It is absolutely right that this House scrutinises HS2. I have listened carefully to the debate, and it is absolutely clear that the objection is rooted not so much in the actual scheme as in the governance of it, and I, too, have put question marks over the governance and management of it. Some of that sits fairly and squarely with the Secretary of State and the fact that he is not doing his job of calling HS2 to account. Therefore, it will be absolutely right that, on Monday, hon. Members from across the House support my amendment calling for greater scrutiny of the project. I very much hope that they will join me in the Lobby.

I take issue with the fact that a number of non-disclosure agreements have been issued. We want there to be real transparency. That is about calling management to account for the way they are handling the employment situation in their organisation. It is absolutely right that those questions are asked of HS2 and that it is brought to account for that.

I want now to set out Labour’s position on the whole project. Connectivity and reliability must be at the heart of our railway system. There have been problems, and we need to make improvements. We are determined to do that through our enhancement programme. HS2 should not be segregated; it needs to be integrated into our rail enhancement work, and that is certainly what we want to do. We want to see more capacity built across our railways.

Our driving force is, first and foremost, to decarbonise our transport system. Currently, 29% of emissions come from our transport system, and we are in fact seeing regression on carbon reduction, not least with the deeply ecologically and environmentally damaging road building programme—road investment strategy 2—that the Government propose. We want to see good public transport investment, and certainly that is what people will get under a Labour Government.

We want to drive modal shift. It is so important to have people moving from their cars on to our rail network—we see that as comprising the main arteries of our transport system. But crucially, as my hon. Friend the Member for Crewe and Nantwich (Laura Smith) said, we need lorries coming off the roads and freight moving on to rail. HS2 provides an opportunity to ensure that we have the good connectivity—

Kelvin Hopkins Portrait Kelvin Hopkins
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Will my hon. Friend give way?

Rachael Maskell Portrait Rachael Maskell
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I am afraid I do not have time.

There is an opportunity to have good connectivity between ports and airports and to ensure that we can bring that right through to urban consolidation centres and then to the final mile. We need to seriously decarbonise our transport system using rail.

We want skills to be at the heart of this opportunity as we build the rail network for the future, and that brings me to one of the questions I have for the Minister today. In the light of Hinkley point being behind schedule and of the number of infrastructure projects the Government have planned, we have a bell curve whereby we have a peak in demand for skills but not the skills to match that. How will she ensure that there are sufficient skills for this project, particularly given that, at its peak, it will provide jobs for 30,000 people? We need to ensure that the project is not delayed because of poor infrastructure planning across the economy.

I agree with my right hon. Friend the Member for Birmingham, Hodge Hill (Liam Byrne), who made a most excellent speech, about ensuring that we measure what we treasure. This is about jobs. Certainly on the Labour Benches, we believe that it is important that we invest in high-quality jobs for those areas of the country that have been missed out to date. Therefore, inward investment in the northern towns and cities, and in the midlands—east and west—will be vital to rebirthing our economy in those areas. At the moment, they are in a lot of pain because we have not seen that investment.

We have a real opportunity, but it has to be managed properly. Building capacity across our transport system is really important. We need sustained freight paths. Part of this will also be about seeing growth in patronage and ensuring that we reduce journey times. We need to lead that right into Scotland to ensure that we can see that modal shift from plane on to train. That is the larger vision of where we are going. But we would also do things differently; we make no bones about that. For instance, with parkway stations, it does not make sense that people have to drive to get the connectivity with the rail network. We would very much want to seek urban connection points; we believe that the situation needs to be reviewed.

The final phase of the project—the 2b stage—has to be fully integrated with trans-Pennine connectivity. This should be one project, not two segregated projects; it needs integrating. We hear that call from Transport for the North, and we hear it now from HS2, and we certainly hear the call from politicians across the north that it is time we brought those projects together into one. There are proposals for constructing things differently from the current Y shape and for making this much more about ensuring, first and foremost, that we get the connectivity across the north. The case was made very clearly in the House of Lords through the paper “Rethinking High Speed 2”, and we would certainly support that.

With regard to the way we proceed on this project, we believe that the missing piece, which is crucial, is that the project is not peer-reviewed. It must be peer-reviewed independently to ensure, first, that the engineering is right and, secondly, that the value is right. That is where the lack of accountability sits. Once we have that information before the House, we can make a sound judgment on whether the project will deliver the value, the jobs and the opportunity for conurbations across this country. Until that occurs, we will put a serious question mark over the governance and over this Government’s handling of the project. We believe that it could be in a different place. Certainly on the issue of cost—the cost financially, but also the cost to the environment—we need to ensure that all these measures are properly brought into check as we move forward in improving scrutiny.

On Monday, we have an opportunity to review phase 2a in relation to the Bill. Labour will bring forward amendments on Report, and we very much hope that people who believe there should be greater scrutiny, governance and accountability of HS2 will join us in the Lobby to ensure that we put in place the right checks and balances for this project, to drive up the very treasure that my right hon. Friend the Member for Birmingham, Hodge Hill mentioned.

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Nusrat Ghani Portrait Ms Ghani
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Indeed, because the full stretch of HS2 will go up to Scotland. One of our ambitions is to reduce the journey time from London to Scotland. That is why we are continuing to ensure that we get through all the legislation and that the line stays on track.

HS2 will have a big impact on local jobs. At present we have over 2,000 businesses in the supply chain, 70% of which are small and medium-sized enterprises. That is what comes of building an ambitious railway line connecting eight of our top 10 cities.

Kelvin Hopkins Portrait Kelvin Hopkins
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On the Scotland point, in 1990, British Rail ran a special train from King’s Cross to Edinburgh, with a two-minute stop at Newcastle, in three and a half hours—three and a half minutes faster than is planned for HS2. All that is needed is a bit of modification on the east coast main line, and that could be a regular service.

Nusrat Ghani Portrait Ms Ghani
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I am sorry, I was not in the House in 1990 when that was reported; I am talking about 2026 and 2033, when we will connect faster trains to Scotland.

I will now discuss some real live cases of how HS2 is bringing greater economic benefits than we thought would be possible over a decade ago. HSBC, for example, has brought 1,000 jobs to Birmingham by moving its retail and business banking headquarters. Other cities along the line are seeing benefits from businesses which are relocating, including Burberry investing in a new factory in Leeds, claiming proximity to the HS2 station as a key factor in its decision. Freshfields and EY now employ 1,000 people in Manchester. Locally, places are gearing up for the arrival of HS2: Toton has plans for it to facilitate the Toton innovation campus, with the potential for up to 10,000 new jobs and a range of new housing; and the Cheshire science corridor enterprise zone, which was launched in 2016, aims to create 20,000 jobs by building a golden triangle with Liverpool and Manchester.

I fear that I am running out of time, but the business case is clearly solid: there is one budget and one timetable—HS2 will continue on track. My right hon. Friend the Member for South Northamptonshire asked me to confirm at the Dispatch Box what the budget and the timetable are. I stand here to state confidently that the budget is £55.7 billion and that the timetable is 2026 and 2033. I look forward to continuing this debate on Monday afternoon, when we hope that the Bill will return to the Floor of the House.

Question put and agreed to.

Resolved,

That this House has considered the business case for High Speed 2.