The Economics of High Speed 2 - Economic Affairs Committee Contents


CHAPTER 9: THE QUESTIONS FOR GOVERNMENT


On the basis of our report, we ask the Government following the 2015 General Election to address the questions below. The Government must answer these questions before the High Speed Rail Bill completes its passage through Parliament.

NATIONAL TRANSPORT PLAN

·  In the absence of a co-ordinated transport plan, how can the Government be sure that HS2 is the best way to achieve the project's objectives?

THE COST OF HS2

·  What measures will be taken to limit the cost of constructing HS2?

·  Is the funding envelope of £50 billion for the cost of construction an absolute limit or will this increase with inflation?

·  How much cheaper would a new railway built for a lower maximum speed (for example, 320 kilometres per hour as in France) be?

·  How will the Government ensure that HS2 stations are appropriately linked in to local transport networks? How will this be funded?

WHO WILL PAY FOR HS2

·  Should passengers benefiting from faster journeys on HS2 pay premium fares to reduce the high level of taxpayer subsidy of the project?

·  How does the high level of taxpayer subsidy of HS2 fit with the Government's commitment to reduce the level of subsidy of the UK rail network?

DEMAND AND CAPACITY

·  Will the Government either release the full data on overcrowding, down to the level of individual services, or ensure the data is reviewed independently, to provide the public with evidence there will be a growing problem on long-distance services?

LACK OF CONSIDERATION OF ALTERNATIVE RAIL INVESTMENT

·  Could incremental improvements to the existing rail network deliver the required capacity improvements?

·  Could the use of flexible pricing policies, such as those used by low-cost airlines, assist with managing overcrowding on the busiest trains?

·  Is HS2 the best way to address the problems which currently exist?

EFFECT ON THE UK ECONOMY

·  Given that evidence from abroad suggests that large cities benefit the most from improving connectivity, how will HS2 rebalance Britain's economy?

·  Is High Speed 2 the best way to spend £50 billion to stimulate the UK economy?

·  Would local and regional infrastructure investment, as recommended by the Eddington Study of 2006, offer a more realistic proposition of a return on investment than HS2?

PRIORITISATION

·  Should improving regional rail links in the north be prioritised ahead of building HS2 Phase One?

LACK OF EVIDENCE

·  What effect will the findings of the research commissioned on values of time have on the cost-benefit analysis of HS2?


 
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