Asked by
Viscount Astor Portrait Viscount Astor
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To ask Her Majesty’s Government what assessment they have made of alternative routes for HS2, and compensation terms for those affected by it.

Viscount Astor Portrait Viscount Astor
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My Lords, the Government have so far rejected the opportunity to pause and wait until the Davies report on airport capacity in the south of England is published in 2015 and are pressing ahead with HS2. Therefore, we may have a new railway line on the right side of the country but, equally, we could have a railway line on the wrong side of the country. Who knows? However, HS2 is going ahead. What we do know is that the department has rejected a route stopping at Heathrow and so far has rejected a spur that would connect to Heathrow Aiport, so we are faced with the possibility that Heathrow may end up with the worst rail connections of any major airport in Europe.

In its recent report, the House of Commons Transport Select Committee called for a third runway at Heathrow, rejected the idea of a new airport in the Thames estuary and called for HS2 to serve Heathrow directly. What is the Minister’s response to this report? I imagine that the Government will want to wait until the Davies report has been published.

Today, we have to deal with the route for HS2 proposed by the Government. If it cannot cross the Chilterns at their narrowest point, it must be tunnelled where possible or mitigating measures must be put in place to give maximum environmental protection. If the Government would accept just one principle, which they accepted for HS1—that for any areas of outstanding natural beauty the route should be tunnelled—opposition to HS2 in the Chilterns would largely disappear. Another help would be to add an intermediate station, perhaps at Bicester, so that at least those living in the area could benefit from HS2.

It is worth repeating what made HS1 acceptable—what became known as the Kent principles: any route should be tunnelled or engineered with cuttings and sound barriers to minimise sound intrusion; it must follow the shortest route for areas of outstanding natural beauty; there must be an advantage for locals in intermediate stations, such as Ashford, which was created for HS1; and, where possible, any route should follow noisy transport corridors such as existing motorways. HS2 achieves none of these for one very simple reason—speed. I will come back to that in a moment.

The urgent issue that really concerns me is compensation. The judicial review judgment found that the Government must review their proposals. If you live within 60 metres of the line, you are automatically entitled to compensation. However, perhaps your Lordships can imagine HS2 crossing the middle of the Prince’s Chamber. If your house is on the first Cross Bench, you get compensation, but if your house is on the third Cross Bench, you get nothing. I would submit that there is not a large difference between them.

We know of at least one house 450 metres away from the proposed line that has been valued as worthless by the local building society. Many with homes just outside the planned route have found that their value has plummeted and that they cannot sell at any price. The mortgage company is demanding repayment due to the loan falling below the value of the house, and of course the banks are not interested in helping.

I will give one example. A couple in their late 70s live a few metres beyond the 60-metre limit. Their house was worth well over £200,000; now, it is virtually worthless. They cannot afford to sell but they cannot afford to stay. They want to move into a care home but they cannot. Theoretically they would have to pay because their assets are worth more than £70,000, but they do not have the money and they do not have a way out. They do not meet the definition of hardship and will be able to make an application for compensation to the Lands Tribunal only after 15 years, based on physical nuisance under complex rules. If they have not been gathered by then, they certainly will not be able to afford the costs of the case. They are suffering in a terrible vicious circle, and this is an issue that the Government ought to consider.

So far, three-quarters of those who have applied to sell their homes to HS2 have been turned down under the Government’s exceptional hardship scheme. I believe that they should review the terms of the scheme. A property bond has been proposed that would allow home owners to apply to the Government for an undertaking to purchase the property at a future date if a buyer cannot be found at the unblighted price. The bond would be transferable with the property to give confidence and security to any future purchaser or mortgage lender. This is not a new scheme. This type of scheme has been operated by Central Railway Ltd as well as by the British Airports Authority, which has a similar scheme, and mortgage lenders have successfully worked with the scheme.

The Government should remember that we are considering not just the effect of the trains once the line is completed but the many years of construction: the noise, the dust in summer and the hundreds of heavy lorries using country lanes. Local businesses, too, will be affected, and under the scheme they will have to prove loss of business—but only after some years. It would be depressing to see the value of your business decline in front of you and be unable to do anything about it until it was too late. We know that HS2 will cost more than £32 billion for the track, and another £8 billion for the trains: more than £40 billion in all. Can we have a little fairness for those who suffer real hardship? Will the Government consider a property bond? I gave the Minister notice that I would ask this question.

As I said earlier, the issue comes back to speed. The faster you go, the straighter the track has to be: no corners, so no flexibility. The Government have designed the track so that trains can run at 400 kph, which would make them some of the fastest in Europe. The plan is that they will start at 360 kph and work up to achieve an average speed from London to Birmingham of 330 kph. HS1’s maximum operating speed is 225 kph, with an average speed from London to the Channel Tunnel of 211 kph. The average speed of the HS2 service shows that it will have to operate at much slower speeds through tunnels and urban areas. Of the 225 kilometres of HS2’s route from London to Birmingham, less than half—109 kilometres—will be capable of allowing the planned 400 kph speed, due to various constraints.

So why design a track that will enable trains to run at this high speed of 400 kph when we know that it takes time to build up speed and as much time to brake to a slower speed, both of which will use energy and increase CO2 emissions? The problem with a projected speed of this nature is that there can be no corners: the track has to run virtually in a straight line. The minimum radius of curvature for the track increases, I am told—I am no mathematician or expert—from 4.05 kilometres to 7.2 kilometres. What is more, it will then limit the length of tunnels in which the train can travel at speed. Therefore, the line has to be straight. It cannot avoid urban areas or the unspoilt valleys of the Chilterns, or follow the line of the M40, where possible, to Birmingham.

We know from Europe that train speeds are being reduced, not increased, due to the disproportionate effect of very high speeds on train and track maintenance and on energy consumption and efficiency. If the plan was to operate HS2 at the same top speed as HS1, all the main issues could be dealt with, including a station at Bicester linking through to the Midlands, which would attract local support. Following the M40 as closely as possible to minimise environmental impacts would avoid most of the scarring and destruction and the damage to many homes. Many fewer houses would be affected than under the current plan, and that would enable the Government to save money, even though there would then have to be a longer track. It would avoid the loss of ancient monuments and woodlands and the severance of many public rights of way.

Therefore, my plea is for the Government to see what can be done. It is not too late. With HS1, we know that right up until the moment it was built there was a debate on where the track should go. It is not impossible to make changes. We know that we have an enabling Bill coming before us in this Session of Parliament, and we know that the Government hope to introduce a full Bill perhaps next year, so it is not too late to review the route and to take in all the matters that affect the route, whether it is speed, the environmental benefits or the environmental impact. I quite understand if the Government are determined to go ahead, and they should do so, but I urge them to look at the effect on those who live along the route and to see what they can do to mitigate the damage and improve the compensation that is available.

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Earl Attlee Portrait Earl Attlee
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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.

Viscount Astor Portrait Viscount Astor
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I am grateful to my noble friend for giving way. He kindly said that the Government have the intention of introducing a property bond. I realise that there will not be time for him to go into the details today but I would be grateful, when he has had a chance to consider what it might be, if he would perhaps write to those who have spoken in this debate with any details that he has.