Matthew Sinclair: Beware of multi-billion pound projects bearing jobs

On HS2 as a job creation scheme:

40,000 jobs from a £17 billion project means that each job is costing well over £400,000.  By contrast, in the wider economy the capital stock is about £3.2 trillion and that supports over 30 million jobs; just over £100,000 a job.  In other words, every job created by high speed rail comes at a cost of four jobs in the wider economy.

via ConservativeHome’s Platform: Matthew Sinclair: Beware of multi-billion pound projects bearing jobs.

HS2 Consultation launched

The consultation on HS2 has been announced today and it is open for your feedback.  You can access the consultation website here.  The Executive Summary can be found here; for the full document please click here.

HS2 is a sore issue in the Chilterns, and rightly so.  However, High Speed Rail has further repercussions, including philosophical and economic questions about the future direction of the country.

My view on HS2 was laid out during the Westminster Hall debate I called last year.

I have prepared a statement on HS2 which can be found in the Where I stand section of my blog. Here is an extract:

I applaud sincerely the Government’s noble intent, but I note that rail has not been governed by the free market for a very long time. There is no doubt that this country needs good-quality infrastructure. We should create the conditions in which unsubsidised enterprise can deliver the optimal solution. That would be the classical Liberal and Conservative approach. In my view, the solution that would emerge is not likely to be high-speed rail. I believe that this programme should be cancelled.

This is also a call to MPs and voters who live next to and along the proposed northern spur, which will travel between Manchester and Leeds: if you wish to oppose HS2 on principle, you must do so now.  Only in this stage of the consultation will the principle of High Speed rail be discussed.

Now is the time for your democratic voice to be heard on HS2.

Adjournment debate on HS2 today

THE Government’s High Speed 2 plans were today opposed by Wycombe MP Steve Baker in the Houses of Parliament.

Tory MP Mr Baker personally called a 90 minute debate this morning, where Transport Minister Theresa Villiers was summoned.

Read the full coverage in the BFP here. a video of the debate is available here. I am grateful to the Minister and colleagues for their participation.

HS2 meeting with Rt Hon Philip Hammond

I attended an HS2 meeting with Philip Hammond in Amersham tonight.

My impression is that the consultation is sincere and that the Secretary of State is willing to engage meaningfully. However, I believe the government is also sincerely committed to the programme.

My main point was that rational economic calculation is not possible without the unhampered formation of prices and that prices in transport today are subject to a range of interventions. That is, far from knowing that HS2 would revitalise the north, we do not even know whether we over-produce transport infrastructure. This is the socialist calculation problem. More on the theory here.

And congratulations to the HS2 Action Alliance for their superb work!

More anon when the papers report the meeting.

Continental High Speed Rail

From our correspondent and with permission:

Dear All,

Angela and I have just come back from a trip  to Oberammergau. We went via high speed train from St Pancras to Brussels and then again from Cologne to Munich and Munich to Worgle.

The fact of the matter is that “high speed” is a fabrication. Although the trains were seemingly capable of travelling beyond 200 mph NEVER ONCE did they do so, (there is a speedometer in a communal area so you can tell). In fact they never got near it, the fastest was something less than 150 mph and each journey was subject to inexplicable delays when the trains just stopped for twenty to twenty five minutes or so, with the result that at each destination we were late in arrival. The trains themselves were not particularly comfortable, with no air conditioning and insufficient luggage space for anything other than a brief case or small bag. It was actually a joy to get back on the Chiltern Line at Marylebone where the train was on time, clean and with air conditioning.

Quite why the high speed trains never reached their potential I do not know, (economy, noise, safety???) but it would be interesting to find out.

With the best will in the world for the life of us we simply could not see why our existing networks cannot be upgraded (the Chiltern Line is already spending over £250,000,000 doing just that) rather than spending a huge amount of money, which as a country we are told we do not have, and simultaneously destroying a vast amount of our beautiful and irreplaceable countryside for the sake of speed which in so far as France, Belgium, Austria and Germany is concerned is a lie and a fallacy and actually not required.

From this it transpires that not only is the business case a complete nonsense but the reality of High Speed Trains is equally so.

Regards,

Nick.

How can we re-think government to deliver more for less?

Via HMT – Spending Challenge, an attempt to “crowd source” government spending:

The Spending Challenge is your chance to help shape the way government works. We need to reduce the deficit by cutting public spending in a way that is fair and responsible – and you can help.

It could be something small that is quick and easy to put into action, or a more radical change to where and how government works.  Either way, please be as specific as you can.

If you see ideas here already that you like the look of, then rate them and get them moved up the list. And if there’s more you’d like to say, then talk to others in the comments section.

A team has been put together right at the heart of government and their job is to make sure that your ideas and comments are taken seriously – and that the best ideas are taken forward as part of the Spending Review.

The Spending Review will set out four year spending plans for all government departments, as well as considering other areas of spending including welfare. The conclusions of the Spending Review will be published on 20 October 2010.

At a glance, there are some great ideas – scrapping HS2 and not wasting money at the end of the financial year, for example – and some awful or ridiculous ones.

You can play your part, for better or worse, here.