Tuesday 10th January 2012

(12 years, 3 months ago)

Commons Chamber
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John Bercow Portrait Mr Speaker
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Order. I thank the Secretary of State for her statement, which was nevertheless significantly in excess of the allotted time for ministerial statements. An allowance for that will be made in the response from the shadow Secretary of State. The House can rest assured, as it can always rest assured, that I have the interests of Back Benchers at heart. They need not worry; if they want to get in, they will be heard.

Maria Eagle Portrait Maria Eagle (Garston and Halewood) (Lab)
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May I begin by thanking the Secretary of State for advance sight of her statement? I welcome her decision today. As the right hon. Lady was generous enough to say, it was the previous Labour Government who started us on the journey that has now reached this important milestone. I pay tribute to the former Prime Minister, my right hon. Friend the Member for Kirkcaldy and Cowdenbeath (Mr Brown), for having the boldness to set out a vision for a new high-speed rail line to address the capacity issues on our existing mainlines while cutting journey times across Britain. This is a vital project for the country, and I welcome the decision to give the green light to this investment in the face of considerable opposition—not least from many of the Secretary of State’s own colleagues, including from inside the Cabinet.

Labour Members believe that it is vital that the new high-speed line is built—not just between London and Birmingham, but on to Manchester and Leeds. So while I welcome the commitment given today to the whole HS2 scheme, there will be disappointment that the Government’s announcement has stopped short of committing to legislating for the entire route to Manchester and Leeds in this Parliament. That was always Labour’s intention, as confirmed by the former Transport Secretary Lord Adonis in his evidence to the Transport Select Committee—a position the Select Committee said had merit.

Of course it is right that a single Bill would need to await completion of preparatory work for the second phase of the route. However, by introducing it later in this Parliament and carrying it over to the next, as we did with the legislation for Crossrail, we would secure Parliament’s approval for the whole route at an earlier date than under the Government’s plans. That would, of course, open up the possibility, if it proved feasible, of beginning construction in the north as well as the south—something that the Transport Select Committee urged the Government to consider. The Secretary of State should do so and the Government should think again on the issue of using a single piece of legislation to make HS2 possible all the way to the top of the Y route. At the very least, will the Secretary of State agree, as a minimum, to follow the Transport Select Committee’s recommendation to include a “purpose clause” in the hybrid Bill that she plans, providing statutory force to the commitment to continue the scheme to Manchester and Leeds?

Turning to other issues in the statement, the Secretary of State says that there will be “direct links to Heathrow airport and the continent via the HS1 line”. There will be disappointment that the Government have not accepted the case—not least in her own team—to build a transport hub at Heathrow, enabling a direct connection between the airport, HS2, Crossrail and the Great Western mainline at one site. The Minister of State, Department for Transport, the right hon. Member for Chipping Barnet (Mrs Villiers) is on record as saying that

“failing to take high speed rail through Heathrow…would be a big mistake”.

This is a failure to learn the lessons of successful high-speed rail schemes across the world. When the Government claim this route would cost more, they fail to include the cost of building the spur; and when the Government claim it would increase journey times, they fail to make clear that this hub would be instead of Old Oak Common and would allow for non-stopping services.

Can the Secretary of State confirm the cost of building the separate spur to Heathrow? Can she confirm that the Government’s intention is to enable at least the possibility of direct services between Heathrow and the continent at the end of phase 2? Can the right hon. Lady tell the House what discussions she has had with the European Commission over the potential for EU funding towards the costs of HS2? Is it correct that the decision not to take the route via Heathrow and the concerns over the planned link to HSl mean that such support is less likely to be forthcoming?

In respect of Scotland, the Secretary of State has said that HS2

“will form a foundation for a potentially wider high speed network in years to come.”

Can she confirm that the Government still intend to begin discussions with the Scottish Government on the future development of the network to Scotland during the next Parliament? When do they expect to start work on the business case for further extensions beyond the Y?

As for what the Secretary of State said about mitigation and costs, I welcome the steps that she has taken to address some of the concerns that led the Labour party to propose its alternative route, although none of these measures addresses the impact on the Chilterns as effectively as would a route via Heathrow. It is the Government’s own stubbornness that has forced them to commit themselves to significant additional spending to prevent a Cabinet resignation.

Will the Secretary of State tell us what the extra cost of each of the new mitigation proposals that she has announced today will be, and whether those costs will be met within the existing cost envelope for HS2? What assessment of value for money has she made in respect of the costs of these measures, compared with those of offering greater protection to the Chilterns through a different alignment? I welcome the mitigation measures proposed for London, although there remains a significant impact on the area around Euston station. Will the Secretary of State assure the local community in Camden that she will listen to their concerns, and will take appropriate steps to mitigate the impact of the redevelopment of Euston station? What discussions has she had with Transport for London on how best to address the concerns that have been raised about the impact of the very large increase in the numbers arriving at Euston on HS2?

There has been considerable debate about the affordability of building the line, but not about the affordability of using it once it opens. I note that the Secretary of State had nothing to say about that in her statement. Does she agree with us that now is the time to move the debate from whether we should build to discussing the type of high-speed rail network that we want to see in this country? Her predecessor as Secretary of State—I am pleased to see that he is present—told the Transport Committee:

“If you are working in a factory in Manchester you might never get on HS2, but you will certainly be benefiting from it if the salesman and sales director of your company is routinely hopping on it to go and meet customers, to jet around the world from Heathrow in a way that brings in orders that keep you employed.”

Is that not precisely the wrong approach to high-speed rail? Does the Secretary of State agree that we need a high-speed rail network that is affordable for the many and not the few—a network that is not a “rich man’s toy” or simply a business class service?

Today we have reached an important stage in the development of high-speed rail in this country, a process begun by Labour. I hope that the Secretary of State will consider the issues that we have raised. This is a major scheme which deserves proper scrutiny. We have raised questions with the clear intention of ensuring that we have the best possible high-speed rail network, one that the country needs and deserves. We strongly support the building of HS2. [Hon. Members: “Hurray!”] I said that in the first sentence of my reply. I look forward to working on a cross-party basis with the Secretary of State and her colleagues to ensure that parliamentary approval is secured, and that this vital project can move ahead and become a reality.

Justine Greening Portrait Justine Greening
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I am delighted to hear that the Labour party supports our high-speed rail proposals. As I think even Labour Members would have to admit, the original proposal did indeed come from my party. I must point out that high-speed rail did not feature in the Labour Government’s 2007 White Paper setting out the 30-year vision for the railways. However, we are pleased that Labour has belatedly seen the real potential of a high-speed rail network in Britain.

The hon. Member for Garston and Halewood (Maria Eagle) asked about legislation for the full Y network. I am considering whether it is possible for us to build that into the hybrid Bill, but I can give a categorical assurance that I have decided that we should go ahead with the full Y network. I have also announced today the final decision on the route of phase 1 of that network.

The hon. Lady asked about Heathrow, which has clearly been an important aspect of the issue. HS2 will go directly to Heathrow. That will happen as part of phase 2. People will be able to get on a high-speed train in Birmingham that goes direct to Heathrow. The hon. Lady raised the question of whether HS2 should go directly via Heathrow. The last Labour Transport Secretary of State, Lord Adonis, looked at that, and he concluded— as did I and my predecessor, my right hon. Friend the Member for Runnymede and Weybridge (Mr Hammond) —that that is not the most cost-effective or line-effective route for the line to take. It would be a longer line, and it would be more expensive.

The hon. Lady asked whether we will seek EU funding. The business case we have presented to the House today is based on a working assumption that the £32 billion cost of this railway will come from the rail budget—that it will be taxpayer-funded. The business case would improve if we were able to get private sector and EU funding. We believe that this is a high-value project and we will look to see whether we can secure such contributions, especially from the private sector, and they would make that business case even stronger than it already is.

I am keen to talk with the Scottish Government about their aspirations for high-speed rail further north. Their desire to see this project go ahead underlines its strategic value to the entire UK, not just the London-to-Birmingham part of our country.

On mitigation, the hon. Lady raised the important question of how we tackled the issue of the line going through an area of outstanding natural beauty in the Chilterns. I want to emphasise that I looked very hard along the entire line. I understood the specific concerns people had in respect of this AONB, and I took them very seriously, but I looked at the whole line to see how we could mitigate its impact on local communities wherever possible, because that is important and the right thing to do. The changes in the Chilterns that we have made will result in that stretch of the line costing in the region of £250 million to £300 million less, because the engineering solutions we have found will involve less use of deep cutting. That will mean that we have less spoil, and the removal of spoil is often what causes huge expense. I hope that provides some reassurance to the hon. Lady. For some parts of this route, improving the line is good not only for local communities but for the business case for the line.

The hon. Lady also raised the question of the redevelopment of Euston station that will happen as part of HS2’s phase 1 proposal. We believe the line coming into Euston can be part and parcel of the regeneration of the Euston area. We must ensure that Euston makes the most of the investment that will go into Euston station. I fully understand that two-thirds of the homes that will be demolished will be next to Euston station, and we will work very closely with Camden council. A number of statutory processes are already in place to provide safeguards for tenants who will be affected, but I can assure the House that I will work very closely with Camden council in considering how we can minimise the impact of the redevelopment of Euston station on current residents. I will, of course, also be delighted to work with the Mayor in considering traffic flows on the tube and how high-speed rail will interact with our tube network.

The hon. Lady asked about affordability and pricing, and I agree that that is very important. The business case we have done assumes a pricing level that is the same as the standard pricing on the current network. That has been the presumption. As we get closer to the finalisation of the route and its development, I am sure we will look at the pricing, but I can assure the hon. Lady that the success of this high-speed railway network will be based on its being used by many people, not a few. I have no doubt that the pricing of the tickets will be set in order to achieve that.