HS2 in Hansard 29/10/2013

The Secretary of State for Transport (Mr Patrick

McLoughlin): The Government have today published

“The Strategic Case for HS2”, an updated economic

case and other supporting documents, including a technical

report into possible alternatives to HS2 by Atkins and

Network Rail

I regard the publication of these documents as an

important step in my preparations for laying the hybrid

Bill before Parliament later this year and I consider this

to be an opportune time to explain the benefits of HS2

clearly and comprehensively.

Good quality transport is at the heart of our economic

success and the decisions we take now about transport

investment will determine our country’s economic future.

The case for the new line rests on the step change in

capacity and connectivity it will provide.

The new north-south railway is a long-term solution

to a long-term problem. Without HS2, the west coast,

east coast and midland main lines are likely to be

overwhelmed.With it, we will transform intercity travel.

There will also be benefits for regional and commuter

services. It will increase the amount of freight that can

be carried by rail.

HS2 will provide a very significant increase in capacity

on the rail network. It will deliver a 14 trains per hour

capability in phase 1, rising to 18 trains an hour in

phase 2— transforming intercity rail services.

Significant journey time improvements will be possible,

such as reducing the journey time between London and

Manchester from two hours eight minutes to one hour

eight minutes. HS2 will connect eight of our 10 largest

cities and bring two thirds of the population within two

hours of London.

And HS2 could provide space for at least an extra

20 west coast main line freight paths, with each extra

freight train typically taking 40 lorries off our roads;

easing congestion and reducing carbon emissions.

These transport improvements will help support

economic growth and make a major contribution towards

rebalancing the economy.

Subject to parliamentary approval, the new railway

will be built in two phases. It will be fully integrated

with the rest of the railway network. It will bring

benefits to places with stations on the new railway

including Leeds, Manchester, Birmingham and London;

to stations on the classic network like Liverpool, Darlington

and Newcastle which will receive high-speed services;

and to other places on the existing mainlines like Milton

Keynes,Rugby and Peterborough, which will have better

services from released capacity on the existing main


Analysis by Atkins and Network Rail has considered

whether we could meet the capacity challenge in other

ways—for example through upgrades to the current

railway. But HS2 emerges as the only option that provides

not only the capacity and the connectivity this country

needs, but is also deliverable, minimises disruption to

existing rail services and allows us to leap ahead of

demand and reshape the economic geography of the


The updated economic case scrutinises again the

costs and benefits of HS2. The new analysis shows that

the Y network delivers a good return on investment,

with a standard cost benefit ratio of 2.3.

HS2 has been allocated a funding envelope of

£42.6 billion in the 2015 spending review and will not

exceed that allocation. It includes £14.4 billion of

contingency, which I am determined to bear down on

and I have put in place rigorous controls, including a

target price for HS2.

We are continuing to work with the construction and

supply industry and with local communities to ensure

that this unprecedented investment in a new north-south

line will deliver the best possible return to the British

economy, and be built at the lowest possible cost and

with the lowest possible environmental impact.

I am laying copies of these documents in the Libraries

of both Houses.

High Speed 2 Railway Line

Helen Jones: To ask the Secretary of State for

Transport if he will direct HS2 Ltd to commission a

study on the potential economic effects on Warrington

of (a) that town not having a station on the High

Speed 2 line and (b) a reduction in the number of

direct trains to London and Scotland from Warrington

Bank Quay. [172624]

Mr Goodwill [holding answer 28 October 2013]: HS2

Ltd has recently published an initial study analysing the

regional economic impacts of HS2 and associated use

of the classic rail network infrastructure. This includes

an estimate that the productivity benefits to the North

West region could be between £1.1 billion and £2.5

billion in 2037. HS2 Ltd will continue to develop analysis

in this area.

The indicative train timetable in this modelling shows

that Warrington Bank Quay would be served by high

speed classic-compatible trains in both phase one and

phase two of HS2. One of the key principles that will

guide future service patterns is that all towns or cities

which currently have a direct service to London will

retain broadly comparable or better services once HS2

is completed.

Mrs Gillan: To ask the Secretary of State for

Transport pursuant to the answer of 22 October 2013,

Official Report, column 120W, on High Speed 2, if he

will publish (a) the case for strategic rail alternatives to

High Speed 2 commissioned from WS Atkins, (b) the

Professional Services Commercial analysis WP7

commissioned from PwC, (c) the professional

Services Regional Economic Analysis commissioned

from KPMG LLP and (d) the professional services full

audit of HS2 Ltd modelling from Sinclair Knight Merz

(Europe) Ltd (SKM). [172917]

Mr Goodwill: The information is as follows:

(a) The Atkins report on Strategic Rail Alternatives to HS2 is

published today by the Department and a copy has been placed in

the House Library.

(b) HS2 Ltd will consider publication of the Commercial

Analysis WP7 by PwC once the work is complete.

(c) The KPMG report on HS2 Regional Economic Impacts

was published on 1 September 2013.

(d) The audit of the Planet Framework Model carried out by

SKM is published today by HS2 Ltd.

Mrs Gillan: To ask the Secretary of State for

Transport if he will list the parliamentary constituencies

which the KPMG report on the economic impact of

High Speed 2 indicated would be negatively affected.


Mr Goodwill: The analysis in the KPMG report on

regional economic impacts is based on transport zones

rather than parliamentary constituencies and the results

cannot be presented on the basis of the latter. The

report estimates that HS2 would deliver a £15 billion

annual boost to economic output from 2037.

High Speed Two

Mrs Gillan: To ask the Secretary of State for

Transport how many people retained by HS2 Ltd on

personal service contracts have been found not to have

been compliant with their tax and National Insurance

obligations until contacted by the Department’s

representative looking into this aspect of their

employment. [172915]

Mr Goodwill: There were none.

Mrs Gillan: To ask the Secretary of State for

Transport which people engaged by (a) HS2 Ltd and

(b) his Department with responsibility for the High

Speed 2 project have (a) received bonuses or (b) been

contracted with promises of bonus payments; what the

value of each such bonus payments was; and what

performance indicators were attached to such bonuses.


Mr Goodwill: Within the Department, the performance

arrangements provide for bonuses in respect of staff

achieving certain levels of performance measured against

individual achievement of objectives.

In 2011-12 and 2012-13, 95% of staff below the

senior civil service were eligible for a bonus ranging

between £380 to £1,800 and 25% of staff in the senior

civil service were eligible for a bonus ranging between

£7,000 to £12,500. The total value of the bonuses paid

in the two years across the Department was £3,033,937.

In 2013-14, 25% of staff below the senior civil service

were eligible for a bonus ranging between £540 to

£2,700 and 25% of staff in the senior civil service were

eligible for a bonus ranging between £10,000 to £15,000.

The total value of the bonuses paid was £1,158,538.

The same proportions would apply to staff engaged

on HS2 issues as to the rest of the Department.

In 2011-12 HS2 Ltd paid bonuses of £1,000 or less to

four people and a bonus of £14,000 to one person.

In 2012-13 HS2 Ltd paid a bonus to one person in the

range £15,000 to £20,000 for performance in the year

ending March 2012.

Criteria used were business delivery objectives,

development of capability and contribution to corporate


HS2 Ltd no longer operates a bonus scheme for