Network Rail’s Enhancements Pipeline

Lord Rosser Excerpts

Wednesday 21st October 2020 Lords Chamber

[Baroness Vere of Norbiton (Con)]

The noble Lord is quite right, and that is one of the reasons why we have investment periods for both rail and roads. This makes sure that the supply chain knows what is coming down the track, so to speak, and is able to respond accordingly. It also gives it certainty that if a project goes through its stages then it will actually happen. One of the biggest challenges we have had previously has been a lack of certainty that projects will happen. The noble Lord will also know that the spending review has been reduced to one year. However, for some of the long-term plans—for example, CP6 for rail—it will be a multi-year settlement.

[Lord Rosser (Lab) [V]]

The Government’s HS2 six-monthly report to Parliament referred to £800 million of “cost pressures”. I think that is a euphemism for extra costs which will have to be paid for out of the contingency provision, which at this rate will be used up fairly rapidly. Eight hundred million pounds over six months works out at additional costs of just under £4.5 million every day, or £3,000 every minute. We support HS2, but when do the Government intend to get a grip on its costs? Setting up a ministerial task force chaired by the Secretary of State does not sound like much of an answer to that question.

[Baroness Vere of Norbiton (Con)]

The noble Lord is wrong to extrapolate quite as far as he did. We have a relentless focus on controlling costs. He is right that there are some cost pressures from the preparatory works, but we remain confident that HS2 phase 1 can be built within the target cost of £40.3 billion.