My Lords, HS2 is a major infrastructure programme that has had substantial parliamentary support from both Houses over its development to date. The Bill before your Lordships’ House relates to phase 2a of HS2, which would extend the line from the West Midlands to Crewe. Before I move on to the substance of the Bill, I want to draw attention to the Oakervee review and the recent advice received from Allan Cook, the chairman of HS2 Ltd. Noble Lords will be aware that the Government have asked Douglas Oakervee, supported by a panel with a wide range of views, to review HS2. Noble Lords will also be aware of the Statement laid last week by the Transport Secretary regarding advice recently received from Allan Cook. The Oakervee review will assemble and test all the existing evidence, including the recent advice from Allan Cook, to allow the Government to make properly informed decisions on the future of the project.
The Transport Secretary made it clear when launching the review that the review itself should not unnecessarily delay HS2. This means continuing with preparatory work, including the enabling work for phase 1, and progressing the legislation for phase 2a. It is important to mention the review and the chairman’s advice, but giving the Bill a Second Reading does not affect the conduct of the review or prejudge its outcome. Indeed, I wish to make it clear that the Bill seeks permissive powers, to be able to construct phase 2a. It does not require the railway to be built.
The focus of this Bill process is addressing the concerns of people whose homes and businesses are impacted by the route. The petitioners seek resolution of their issues and certainty about what will happen. By giving the Bill a Second Reading and allowing the Select Committee to do its work, we can enable petitioners to be heard and their concerns considered.
I thank the noble Lord for his intervention, but perhaps I may pick up all the issues surrounding the review later. If he includes that question in his speech, I will cover it in my speech at the end of the debate, when we discuss all those issues.
My Lords, will the Minister also say whether part of the evidence that the review takes will include an assessment of how much has been spent already on this vital link for the West Midlands? Then we could get a clearer idea, in the light of the suggestion by some that the scheme should be scrapped—which, as well as being disastrous for the West Midlands, would be a colossal waste of money.
It is nearly 200 years since permission was given for the building of what is now the west coast main line. Those railway pioneers made history. The railways allowed goods to travel more quickly to where people wanted them, and allowed people to travel too, for work and leisure. All this truly unlocked the Industrial Revolution, and by connecting people and goods it made the United Kingdom into an economic powerhouse.
Much has changed in nearly 200 years, but I want to focus on the things that remain the same—the things that the railways can still do: the need for railway capacity to take people and freight where they should go; the need for connectivity between places to make travel easier; and the potential for economic growth through transport investment.
Turning to capacity, the vast bulk of our rail network was built more than 100 years ago. Demand has increased substantially since the 1990s, and the west coast main line is effectively full. Inevitably, this has implications for the reliability and performance of our network, affecting both passengers and freight. I do not want to underestimate those implications. Disruption to freight delivery can be unseen, but the disruption to people’s lives caused by late or cancelled trains regularly makes the press. The resulting huge frustration can mean that people choose not to trust trains for freight or travel, and those choices can mean more lorries and cars on our roads, with higher carbon emissions.
Capacity on, and in turn the resilience of, our railways is essential. The Government continue to invest in our existing infrastructure, but to really increase capacity and network reliability requires completely new capacity. Eking ever more out of our already full network comes with extensive disruption, leading to daily frustration with the impact on lives and businesses. Those rail users may not come back to the railways. If it proceeds, HS2 could be the best solution to capacity problems, providing much-needed space on the congested west coast main line, leading to more passengers and more freight trains on the existing network.
Does the Minister agree that those who demand longer tunnels and deeper cuttings are usually the ones who then complain about the extra costs there involved?
The noble Lord raises an interesting point. HS2 is intended to be greater than the sum of its parts. It is designed to provide much-needed capacity on our rail network, allowing freight and passengers more reliable services. It could reconnect our country, pumping much-needed investment into the Midlands and the north. HS2 is about potential: to create opportunities for growth, support a brighter future for the UK, improve and rebalance our economy and improve connectivity across the UK. It remains important to get these decisions right, so we look forward to hearing Douglas Oakervee’s recommendations. In the meantime, I hope the Bill is allowed to proceed today. I beg to move.
My Lords, the HS2 project is an initiative of the last Labour Government and one which we still support today. In the years that have passed since it was first announced, the project has steered off course from the direction we intended. The line was due to be built as a network rather than a standalone piece of infrastructure, as part of a campaign to engineer growth for the Midlands and the north of England. Throughout the route’s construction, we had intended that it would be built with consideration for the economic, environmental and time sensitivities. With public confidence in the Government’s ability to do this now waning, I am pleased that we can debate this Bill to enable the construction of the line between Birmingham and Crewe and that this Parliament can consider whether the project should continue.
In recent weeks, the Government announced that a review will take place to examine whether the HS2 scheme should be approved, amended or scrapped, a move which follows Labour’s amendment to the Bill in the Commons calling for exactly this. However, a review in itself is not enough, and I would appreciate confirmation from the Minister that it will give particular consideration to the predicted timescale and costs, as well as the impact on the environment. Regarding the environmental implications, the impact on woodlands should be specifically analysed. HS2 remains the biggest single development threat to ancient woodland, with at least 108 ancient woods threatened along the route. Can the Minister confirm that the impact on ancient woodlands will be included in the review, and whether any further felling will take place while the report is being produced?
In addition to clarifying what will be included in the report, I would appreciate confirmation that sufficient parliamentary time will be given for both Houses to consider the published review and whether the Government’s resulting judgment is right. The Government’s decision to announce a review highlights further the need for repeated review through the duration of the project. The publication of quarterly reports would make HS2 Ltd more transparent and accountable to Parliament, allowing MPs and Peers to be better equipped to identify any problems and hold both the company and the Government to account. On this side of the House, we may explore legislating for such transparency, as our Commons colleagues attempted to do during the Bill’s passage through the Commons. Could the Minister clarify whether there any non-statutory plans for periodic reports?
My Lords, first, I congratulate the Minister on her enthusiasm about this project. It is good to get that positivity at the beginning of this debate and it is good to see this project gradually creeping, inch by inch, northwards out of the south-east and London. But, my goodness, the Government and other stakeholders make this argument difficult for us at a time when the forecast is for an increase in cost of between £26 billion and £33 billion and for the timetable to extend by five to seven years. In fact, I think it is now 10 years since the noble Lord, Lord Adonis, announced this project, if I have got this right.
Nine years. If we are talking about it being completed by potentially getting up to Leeds and Manchester only, not even to Scotland, then that is going to take some three decades—the sort of time between the end of the Second World War and 1975—which puts it in a timeframe of my lifetime. That seems to me to be absolutely ridiculous.
Another difficulty is our track record. For HS1, it took 16 years from the announcement to get the line built, 14 of which were after the Eurotunnel had been completed, whereas France, strangely enough, had managed to organise it so that the railway line was open at the same time as the tunnel—something which we completely failed at in this country.
But, like the Minister, I remain optimistic. Looking internationally, in Europe—to mention a few countries—Germany, France, Spain and Italy have these networks in place. In fact, France started in 1981 with its TGV infrastructure and now has some 2,500 kilometres of track. China, of course, manages to do these things even quicker, for reasons we understand: there is not quite the level of consultation that we have in this country. It now has some 30,000 kilometres of track. I understand that the line from Beijing to Shanghai—over 1,300 kilometres—was completed in 39 months from announcement to operation. I was tempted to recommend in my speech that we open the work up again and that the Department for Transport gets some Chinese contractors to bid for it, but perhaps that might not be the way to do this. The fact is that we are a long way behind in this country. We are talking about something, although now, nine years later, it is about whether we stop or start again. We need to move this project forward.
Why do we need to do that? For me, an up-to-date, fast train infrastructure is just a part of the tools of a modern economy. I do not see how we can get away from that. Yes, we should have started some three decades ago, but we now need to proceed. It is important from an environmental point of view. There are important issues around environmental corridors and ancient woodlands that I in no way minimise, but I believe this is one of the ways that we need to tackle a clean transport strategy for the future, not just for a decarbonised rail system but for cars and automotive emissions in particular. I hope that at some point, when this railway goes north of the border, we will be able to substitute rail travel for air travel. Those are just some reasons why we need to do it.
My Lords, I shall be echoing the enthusiasm for this project of the Minister and the noble Lord, Lord Teverson.
When I worked at Number 10, I led a year-long project for the then Prime Minister on our national transport infrastructure, working with a team of officials from the Department for Transport and the Cabinet Office. We identified clearly that the UK, a pioneer of transport infrastructure in the 19th and early 20th century, had fallen way behind. In the previous 50 years, we had invested a far lower share of GDP on our infrastructure than other leading countries. Our work demonstrated that, again and again, Governments of both major parties had cut back on planned capital spend whenever a national financial difficulty arose. As a result, the UK had by far the poorest road and rail infrastructure of any developed country. Few of our decision-makers have ever worked in the real economy, I am sorry to say, and they have scant understanding of modern business and of why fit-for-purpose, globally competitive infrastructure is so essential.
Today, business relies on people with advanced professional, specialist and technical skills: financial, strategic, digital, logistical, data science skills and many, many more. They often work for just a few months, on a project basis. Such skills are barely ever available locally in sufficient number. So many people at every level in modern business travel long distances to work, some daily and some weekly, up and out early on Monday, back late Thursday, home-working Friday. At the same time, goods, products and parts of every possible description are distributed urgently at every hour of the day, to every corner of the land. Strategic roads, lamentable though they are in the UK, are by far the most important part of our transport infrastructure. However, rail matters too, and our rail network has long been a disgrace.
We simply must create a long-term, 20 to 30-year plan, not only for effectively linking the huge metropolitan areas of the north to one another but also for linking them and the great Scottish cities to London. Beyond that, we must address lateral travel right across the UK. Manchester and Leeds are 40 miles apart, but it takes over an hour by rail to travel between them. Norwich is 206 miles from Liverpool; the train journey takes five and a half hours, travelling at a snail-rail pace of just 37 miles per hour. Someone leaving London on a Boeing 787 Dreamliner to New York at the same time that Norwich fans left for their opening match of the season against Liverpool just a few weeks ago would have arrived 17 minutes before them.
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That brings me to connectivity. HS2 could connect many of the UK’s largest cities, and passengers would not have to travel on it to feel the benefit. Estimates indicate that about 100 towns and cities across the country could benefit from HS2 through the improved connectivity that a new railway could provide. That is not just rail connectivity; it is connectivity of people to other people, to jobs, and to businesses and their customers and suppliers. This section of HS2 could join Birmingham and London to Crewe, bringing greater connectivity to the north-west and Scotland.
That leads me to my third point: investment in transport infrastructure is not just about the infrastructure itself. Investment in transport infrastructure drives economic growth. It supports productivity by enhancing the transport networks on which businesses and individuals rely, and provides thousands of jobs and training opportunities in the supply chain. Earlier this year the Government announced that HS2 was already supporting more than 9,000 jobs and that 2,000 businesses had delivered goods and services for HS2. It has been offering up exciting opportunities for young people, with over 320 apprenticeships created so far. It is enabling young people to gain the skills to build our future infrastructure. Those skills are transferable, from building railways to other construction and other economic sectors, meaning that HS2 could give the UK more skills to compete globally, generate long-term employment opportunities and become the driving force behind Northern Powerhouse Rail.
I turn to the Bill itself. Phase 2a of HS2 is approximately 36 miles of track. It will extend HS2 from the end of phase 1 at Fradley near Lichfield and onwards towards Crewe. At the northern end it will connect to the west coast main line, allowing HS2 services to join that main line and call at Crewe station. The Bill gives outline planning permission for the railway and allows for compulsory purchase powers. It affects homes, businesses and land along the way, so it is rightly subject to extensive scrutiny. A Select Committee especially convened to scrutinise the Bill in the other place received over 300 individual petitions. During that scrutiny, the Transport Secretary offered 1,000 assurances to people who are directly and especially affected.
If the Bill receives its Second Reading today, it will pass to another specially convened Select Committee of your Lordships’ House that will look again at the detail of the Bill and make sure that it meets the high standards that we expect. The committee will have the power to amend the Bill as well as to require other changes to this part of the scheme not yet covered in the Bill. Since First Reading in July, the Bill has received 35 petitions for the Select Committee to consider, and HS2 is engaging with those petitioners to try to address their needs.
Stepping back from the individual impacts, wider community and environmental impacts are also raised by the Bill. I reassure noble Lords that I understand these wider concerns but I also remind them that it is not possible to build a railway without having some impact on the wider community. We must strike the right balance between delivering and operating a railway and being sensitive to its surroundings. I believe that the Government have struck that balance.
HS2 has undertaken detailed environmental assessments to ensure adequate mitigation of the railway’s impacts. These 36 miles of track have been considered through 17,000 pages of environmental statement—that is over 470 pages of assessment for every mile of track. Many thousands of consultation responses to the assessment were independently assessed and summarised in a report to Parliament. For example, an ecological survey at Colwich looked for great crested newts. The field survey confirmed the newts’ presence and, to compensate for any possible losses, approximately 7.4 hectares of grassland, including eight ponds, has been proposed to provide suitable replacement refuge and foraging habitat. These assessments are not the end of our consideration of the environmental effects and impacts on communities. The Government have continued to listen to communities, environmental groups, statutory bodies and other stakeholders to try to reduce the impacts where we can.
Other changes to the scheme include the lowering of the Kings Bromley and River Trent viaducts in Staffordshire to reduce landscape impacts and the relocation of the southern portal of the Whitmore Heath tunnel, removing the need to realign a road and reducing the loss of ancient woodland. There are additional earthworks to further screen the maintenance base near Stone and to provide additional noise mitigation, such as the noise bund at Woodhouse Farm. There are assurances to protect water voles in Cheshire and to provide bird protectors along the power supplies to protect important bird species. These are just a few examples.
More than half the route is in a tunnel or cutting. The route avoids direct impacts to any grade 1 or 2* listed buildings, to scheduled monuments, to registered battlefields and to registered parks and gardens. The route does not affect any Natura 2000 sites or sites of special scientific interest, or cross any areas of outstanding natural beauty, and HS2 has been designed to withstand a “one in 1,000 years” flooding event. I know there are people who want to see more: longer tunnels, deeper cuttings, taller noise barriers and so on. I understand that. However, our duty to protect the environment must be balanced with our duty to the taxpayer. The work to date has done that and balances these responsibilities appropriately.
Returning to the specifics of the project, I mentioned earlier that the original intention was for HS2 to form a wider network rather than a standalone piece of infrastructure. Above all else, we must remember that HS2 should be to the benefit of everyone across the UK, not only the narrow number who live close to each station. In order to guarantee that the rail line benefits those near to and far from it, we must ensure sufficient accessibility and connectivity.
The section of the route which the Bill deals with begins at Birmingham and passes along the Staffordshire-Shropshire border up to Cheshire. Along this route are counties where some communities lack any kind of meaningful public transport connection to HS2. Although Oswestry, for example—North Shropshire’s largest town—is only about 30 miles as the crow flies from Crewe, if you planned to leave there at 5pm on a weekday using public transport, you would not reach Crewe station until past 9pm. Oswestry is one of the many West Midlands towns without a railway station, and although the nearby Gobowen station is only a bus journey away, the buses can be hours apart and the train journey from there to Crewe requires lengthy changes. Do the Government have any plans to improve links to the line from towns such as Oswestry, and others such as Cheadle in Staffordshire?
Finally, I will touch briefly on compensation. There have rightly been changes in practice to ensure that landowners and freeholders receive compensation for the loss of their homes, but the application criteria for the various compensation schemes do not ensure that compensation is paid to tenants, including tenant farmers. Concerns have been raised that the Government have overlooked this issue and it may be necessary to explore a statutory option in the Bill’s later stages. Since such concerns were debated during the Bill’s passage through the Commons, can the Minister update the House as to whether a new scheme will be introduced?
HS2 is a wholly necessary project to create additional capacity and improved rail connectivity which, if carried out effectively, will increase productivity and encourage growth. In addition, it can help the UK to engineer a much-needed shift of people and goods to rail that is imperative in the light of climate change, and for air quality. However, with reports emerging of predicted delays and overspends, we need, above all, transparency and repeated reviews to consider whether the project will achieve what it intends to achieve. We must also ensure that the project is delivered to the benefit of the wider UK population, as was first intended.
I know that some people have said that this is an old technology. I have heard that from people in the environmental area whom I truly respect, but these lines are still being built abroad at some pace. It is still part of a new technology. Rail, which started almost 200 years ago, is still an important infrastructure. This is not an old technology. Videoconferencing will not substitute the way forward. I also believe that what the Minister said about capacity is particularly important not just for passengers but for freeing up lines for freight services.
I will take just one other area. I think the Minister said—and other contributors from the Labour Benches in particular have said this—that this railway must be open to all. My experience, not just from HS1, is that not just business customers use these lines. Yes, there are some commuters as well, but it is very much ordinary citizens who use them. HS1, particularly for south-eastern services, has been a vital way for local or semi-regional services to rejuvenate part of the south-east—in particular, coastal towns and communities. This is important for all these reasons.
The question I really want to put to the Minister is about value for money. During research for this project, I tried to look at the comparative cost per kilometre of other high-speed trains and tracks in other nations, particularly in Europe—clearly, it is far lower in China because of the geography and the lack of consultation there. Even in France, it is estimated that the cost of one of the recent lines was one-sixth per kilometre of what it is in the UK. I can understand why it could be even 50% more, but to be multiples more I do not understand. The fundamental question I ask the Minister, in order to keep the confidence of me, our Benches and the taxpayer, is: how can the Government ensure that this project, vital though it is, is delivered at the right cost and at the right time, so that we can keep a modern infrastructure in this country?
As the noble Lord, Lord Teverson, said, France opened its first HSR link from Paris to Lyon almost 40 years ago. Japan, Spain and France all have advanced HSR networks now around 1,800 miles in length. China has built an incredible 11,000 miles of high-speed rail in the last six years alone. This, my Lords, is our global competition. Currently, the UK’s only high-speed rail link, from Folkestone to St Pancras, is a measly 67 miles long. How embarrassing for our nation is that?
If HS2 survives its current scrutiny, we will still lag far behind other countries, albeit with a less shaming 400-mile HSR network all of our own. Whatever the project, it must of course be run efficiently, at least possible cost and with real environmental sensitivity. We would all agree on that, but only those who have never themselves managed a large, complex project can barefacedly protest when unexpected difficulties arise or when honest attempts to identify the full cost of a project prove flawed. Beyond that, those selfsame critics often show no appreciation at all of the difference between revenue and capital spend—the latter an investment to have an impact over many decades, perhaps centuries. The Minister reminded us that the west coast line was started 200 years ago. What a return on investment that has proved; it has paid for itself over and over again.
HS2 is a vital foundation of our future rail infrastructure and should be supported wholeheartedly. We should run the project as efficiently and as cost-effectively as we can. But we should also hold our nerve and, Brexit or not, in respect of our national infrastructure we simply must regain Britain’s one-time boldness and ambition from centuries past.