Leaked Oakervee report backs HS2 but admits costs could rise further
A SECOND leaked copy of the Government’s delayed report into High Speed 2 (HS2) has revealed the review panel’s backing for the project to be built ‘in full’, but also says costs could escalate beyond last year’s £88billion estimate.
However, despite raising reservations about the management of the project and quantifying its economic benefits, the report admits there are no other projects capable of delivering similar benefits on the horizon, and any alternative schemes could take many years to develop.
The leak intensified the political row, with both pro and anti-HS2 groups piling pressure on the Government ahead of a final decision expected during the next few weeks.
As was widely predicted, the report ,compiled by a team led by former HS2 Ltd chairman Doug Oakervee, backs the construction of all phases, albeit with modifications aimed at reducing costs.
The changes include cutting the number of trains per hour from 18 to 14 and scrapping the proposed Phase 2/West Coast Main
Line link serving Stafford and Crewe. However, other more controversial, cost-cutting measures, such as reducing the 250mph maximum speed, cancelling the eastern leg of Phase 2b, and the expensive Old Oak Common to Euston tunnels, are rejected as counterproductive.
The draft review also calls for work on Phase 2b (Birmingham to Manchester/Leeds) to be put on hold for six months to explore whether costs could be reduced by using a mix of existing conventional lines and new high-speed rail infrastructure.
This potential downgrading of the northern sections prompted a furious reaction from politicians, business, rail and construction industry leaders.
‘Penny-pinching’
Greater Manchester Mayor Andy Burnham said: “It’s the same old story. London to Birmingham, money is no object, and then all the penny-pinching is done in the north of England.” He added it wasn’t acceptable.
Other new recommendations include building more new stations, including one at
Calvery, Buckinghamshire, to provide an interchange between HS2 and East West Rail, and asking private developers to contribute up to £4bn towards the station construction.
Although the Department for Transport (DfT) says it has not yet received the final report, the leaked document admits there is ‘considerable risk’ the scheme’s cost will increase by as much as 20% beyond the £81£88bn outlined by HS2 Ltd last September.
However, it rejects the widely quoted figure of £106bn.
According to the Oakervee panel, around £9bn has already been spent on preparations, of which up to £3bn in land and property costs could be recovered if the project is cancelled.
Secretary of State for Transport Grant Shapps said on January 20 that the ‘massive decision’ on whether to go ahead with
HS2 “needs to be fact-based”, delaying the announcement further to allow additional data study by the DfT.
Mr Shapps said he had “a relatively neutral point of view”, adding: “We’ll be making a final decision, along with the Prime Minister and the Chancellor, on this very shortly.”
Penny Gaines, the chairman of Stop HS2, said there are massive problems which can’t be brushed under the carpet, adding “the government should pull the plug”.
Midlands Connect chairman
Sir John Peace warned
Boris Johnson any delay or downgrade of HS2 would be a betrayal of the Midlands and the North.
He said: “We need a modern, fast and reliable railway to link our great towns and cities sustainably. The cost is high, but the need is even greater.”