04.02.11
HS2 a wasteful ‘railway for the rich’ - report
HS2 will be a waste of billions of pounds to benefit only the “well-off few”, according to pressure group the TaxPayers’ Alliance.
Although the group is well known for favouring road over rail, the critical report was written by Chris Stokes, who has worked extensively in the rail industry in franchising, electrification and regulation.
His report covers a number of areas, including the initial £17bn cost and uncertain economic case for the route, the lack of real environmental benefits and the relatively small amount of time shaved off journeys between London and Birmingham for the cost.
He also says it is not a public priority, with nearly 12 times as many people wanting expenditure on fixing pot-holes as delivering high-speed rail (70% of the population compared to just 8%).
The report is particularly dismissive of the longer-term expansion plans, including those to link HS2 with HS1, saying: “The Government is proposing to build a long, expensive tunnel in West London for two trains a day each way.”
Stokes writes: “The value of the net revenues once it has been built – fares (£15 billion) less operating costs (£7.6 billion) estimated over a 60 year project life – only cover 42% of the capital costs. And that assumes the revenue forecasts are realistic, but there is compelling evidence that they are overstated.”
He argues that some of the predicted economic benefits arise from freeing up capacity on the existing network, but he says any extra services generating economic benefits will require “further subsidy” which needs to be taken into account. Stokes added HS2 is a “trap for the taxpayer”.
He urged the DfT to learn from the mistakes of the past, after its overestimates of passenger numbers likely to use the Channel Tunnel rail link.
He argues that journey times are already too fast for high-speed to make an appreciable difference, saying: “Madrid to Barcelona took seven hours by rail before the high speed line was built, so almost everyone flew; now it takes less than three hours, and most people go by train. Distances in Britain are simply not long enough for high speed rail to deliver an equivalent step change, except for journeys between Southern England and Scotland, which make up a relatively small proportion of total long distance travel.”
Matthew Sinclair, director of the TaxPayers’ Alliance, said: “Politicians should focus on making commuter journeys more convenient and affordable, not a flashy new train set that will be a huge white elephant.”
A spokesperson for the Association of Train Operating Companies said: “High speed rail forms an important part of ensuring that the UK can meet the transport challenges the country will face in the future.
“Demand for rail travel is expected to double in the coming decades and intercity routes are beginning to fill up as more and more people choose to travel by train. A new high speed line, alongside sustained investment in the existing network, is key if we are to meet the significant growth in passenger numbers that is expected in the years ahead.”
The DfT says high-speed rail is a “once-in-a-generation opportunity to reshape Britain's economic geography” and disputed Stokes’ claim that HS2 will be a ‘railway for the rich’, saying fares will follow the same structure as the existing network.
Tell us what you think – have your say below, or email us directly at [email protected]