Tag Archives: Rail

Filling in potholes

In the 2010 Budget, the Chancellor of the Exchequer, Alistair Darling, promised £100 million to fill the nation’s potholes. But in case you think that this is the limit of his ambitions for investing in our economic infrastructure, he also published a strategy for securing as much as £1 trillion of investment in other holes in the fabric of the nation’s economy.

In the little-noticed Strategy for National Infrastructure, the Government outlined how it will attempt to secure the £40-£50 billion annual infrastructure investment needed over the next 20 years. There is a significant risk of a gap emerging in the funding of large infrastructure projects and, as I discussed in an earlier blog, the Government has established Infrastructure UK to address this.

If the £1 trillion is to be found and deployed effectively, it is important that businesses engage with the Government as it fleshes out its strategy.

The Government wants to stimulate investment, primarily from the private sector across five sectors that contribute directly to economic growth; energy, transport, water, waste and communications. This will cover assets such as waste treatment centres, rail, ports, roads, gas storage, recycling facilities, electricity generation and distribution, and telephone, TV and radio networks.

So far, the strategy is all about process rather than substance.

Infrastructure UK will manage the establishment of the proposed Green Investment Bank with public and private funding of £2 billion to invest in the low carbon sector with a particular focus on energy and transport projects. A consultation on this will be published in the summer.

And there’s more. There will also be a National Infrastructure Framework by the end of 2010 with departmental supply chain analyses; a report on the costs of large-scale civil engineering works by the end of 2010; an action plan on public-private interdependencies by 2011; and an Infrastructure Technology Strategy by 2011. Zzzzz…

The people drawing up this strategy clearly haven’t read my colleague Steve’s blog on why we take so much longer than the French to complete large infrastructure projects. And rather worryingly, the strategy document says that the Government will consider whether, not just how, to give longer-term certainty to public spending on infrastructure.

But at least it’s a start. The Government may be long on process but businesses involved in infrastructure provision should nevertheless engage with the policy makers drawing up these strategies and frameworks. Decisions will be made on investment priorities, changes to the regulatory environment and project financing. If nothing else, these initiatives give business the opportunity to put forward their views on what changes should be made across a whole swathe of policy to facilitate this investment.

A change of government won’t make any difference to this imperative as the need for investment in our infrastructure won’t end on 6 May. The holes need filling and that will require pots of money.

High-speed rail: let’s just copy the French

So the potential route for a high-speed rail line from London to the Midlands, North and Scotland has finally been announced. Cross-party support for the concept suggests that it may be built one day. But in Britain, that’s no guarantee that it will.

We, as a nation, have a lamentable record on major infrastructure projects, especially regarding transport. The politics is wrong, the process is wrong and the funding is wrong. Take two examples from rail and aviation.

The French built their high-speed, long-distance rail link to the Channel Tunnel before it opened. Britain opened our 67-mile branch 15 years after the Tunnel opened. The French link was built with public money; ours with private money that was inevitably bailed out by the state anyway. The French decided their route quickly and got on with building it; we spent years blighting large areas of Kent while a wide range of routes was considered, as much for political-electoral impacts as for geography, heritage and ecology.

Heathrow’s Terminal 5 opened in 2008, 25 years after it was first proposed. The planning inquiry alone took four years, during which time the French conceived, planned, approved, built and opened two new runways and another terminal at Paris Charles de Gaulle airport. And T5 was to be built within the airport boundary, between the two runways, on land then only being used for a sewage farm.

I remember taking a party of UK transport journalists to Charles de Gaulle as part of the T5 campaign and asking my French counterpart how long the planning inquiry took to approve the new terminal. His bemused reply was: “But we had no inquiry. We just applied to the council and they approved it. It’s just like applying for an extension to your house.” Even the compulsory consultation over compensation for local residents only took three months. Then they just got on with it.

After the T5 debacle, the Government said enough was enough and Deputy PM John Prescott initiated a review of planning that led to the creation of an independent Infrastructure Planning Commission for major infrastructure projects of national significance. The aim was that Government would set strategic priorities (ie whether there should be a new high-speed line or runway), and the IPC would determine how and under what conditions a project is delivered.

So what hope for High-Speed Two to Birmingham and beyond? I can see several pitfalls that will at best, delay and at worst, kill off this bold scheme.

First, the route will drive through the Conservative Chilterns and I can’t see a Conservative Government being eager to alienate true-blue voters in Bucks, Beds and Oxon. A Labour Government wouldn’t care – as these people don’t vote Labour anyway (just as it was no surprise in 2003 that Stansted was chosen over Heathrow for a new runway, given the dearth of Labour seats in north Essex and the plethora under Heathrow’s flight paths).

Second, heritage, environmental and other interest groups will band together to fight it and join forces with affected communities. The National Trust has already weighed in. Other Luddites and flat-earthers will follow.

Third, there will be continual haggling over the inclusion of Heathrow. While a route via Heathrow would benefit business users and encourage a switch from some domestic air travel to rail, it doesn’t make economic sense for the project. That won’t stop the strong business and regional lobbies pushing for it, adding to delays.

Fourth, we just never seem to find the cash for mega projects like these. Crossrail will have taken 30 years from when it was originally proposed to opening in 2017, and just look at the mess over the London Underground upgrade – and that’s a crisis over a mere £460 million, not the £30 billion plus that HS2 will cost.

And finally, if the Conservatives win power they have resolved to strip the IPC of its independent authority and make the Secretary of State responsible for the final decision, making the whole thing rest on political, not economic, variables. Back to square one.

I didn’t expect ever to say this, but sometimes (not in matters of personal hygiene and military strategy, of course) I wish we could be a little more like the French.