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£253m spent... and that's before any work has begun

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Saturday, March 16, 2013
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Leicester Mercury

The news that High Speed Rail 2 is already over budget has come to no surprise to campaigners against the project.

A fortnight ago, Transport Secretary Patrick McLoughlin announced plans for a Paving Bill to be introduced in Parliament this year, which has the sole purpose of releasing more money for the project.

  1. wrong track?  The   £33 billion project High Speed Rail 2  has attracted  controversy

    wrong track? The £33 billion project High Speed Rail 2 has attracted controversy

In total, £253 million has already been spent on the HS2 project, four years before construction is due to start.

While there are many issues indicating alarming overspends, the worst example is the seemingly blank cheque awarded to consultancy firm Atkins. Fresh from its involvement in the West Coast Mainline fiasco, which cost the taxpayer £50 million, the company had already overspent its 18-month budget for design work in just nine months.

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At the end of April last year, it was awarded a £13.3 million contract which was set to conclude in the deposition of the Stage 1 Hybrid Bill in October this year. However, by January, it had already spent £14 million.

Design contracts awarded so far are simply for preliminary design work, as detailed design for Stage 1 would not happen until 2016, after the Hybrid Bill is due to be passed.

It seems other contracts awarded last year have similar overspends. Arup, the sponsors (patrons) of pro-HS2 lobbyists Leeds and Birmingham chambers of commerce, have been awarded several contracts to develop HS2.

They have already been paid £10.1 million from a contract to redevelop Euston station.

The redevelopment, described at the time by HS2 Ltd chief engineer Andrew McNaughton as "the biggest development London will ever have seen", has now been scrapped, it seems.

In a meeting with Sarah Hayward, leader of Camden Council and Frank Dobson MP, HS2 Ltd has reportedly said it is now looking at a "cheaper and less disruptive option", after cost estimates came in at 30 to 40 per cent over the original plan.

Additionally, as reported by the Independent On Sunday, HS2 Ltd's IT is suffering from "teething problems".

Penny Gaines, chairwoman of Stop HS2 said: "There is mounting evidence that costs will escalate beyond the £33 billion budget.

"They have cancelled the next round of community forums, much to the disgust of communities who are being blighted. They have dropped the spur to Heathrow from the HS2 plans, without dropping the budget."

HS2 Ltd has clearly demonstrated that its projected budgets have no credibility.

It is simply writing blank cheques with taxpayers' money to the very consultancy firms who have lobbied to convince Governments that this insane plan was needed in the first place.

Joe Rukin, Stop HS2 campaign manager.

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7 Comments

  • Profile image for graydjames

    by graydjames

    Sunday, March 17 2013, 11:41PM

    “I know I am in a minority – at least I am if these pages are anything to go by – but I get deeply depressed by the attitude of so many – I might even say the British people generally - towards any large capital project like that of the HS2.

    Setting aside HS2 for the moment, there seems to be a general malaise about such projects, always seeing them negatively and with a sense of foreboding such that, were we to give in to this, we would see little or no progress whatsoever in our country.

    On a more specific level, it is of course important to try to get the budgets right and every project has a point at which it becomes uneconomic. I do not know enough about the HS2 project to judge whether that point has bee, or might be, reached with HS2; nor, I suspect, do any of those commenting here.

    But I do know that all progress that has occurred in transportation over the last 200 years has happened in the face of similar arguments. These things have to be looked at on a macro level. We have to think about our society in 50 or 100 years time. Is it going to be fit to meet society's needs. What would our society be like today if there had not been railways built, and railways made faster by lots of minor incremental improvements (similar to that proposed recently of the Midland Main Line for example but which was heavily criticise don these pages).

    This is almost a cultural thing. I despair of our general negative attitude. I have just returned from France. Already crisscrossed with many miles of very fast TGV trains, I passed well advanced construction work for two new lines between Tours and Bordeaux and between Brittany and the Pays de la Loire. In France these decisions are made and they get on with it – fast. I am sure there would have been some local opposition but the general attitude is different. They are proud of their rail system. They are proud that they can travel between Paris and Lyon or Lille and Bordeaux or wherever it might be in a very few hours. They look positively on the work. Of course there are exceptions, but generalising, people are content to see their government spend and subsidise in this way. The argument about France and continental Europe being bigger is wholly irrelevant. People should really think hard about this argument. Why should people not have the chance to enjoy really fast travel between London and Manchester (for example). Why is this different to enjoying fast travel between Paris and Lyon (for example) just because the distance between London and Manchester is slightly less? I see the point that we are "a small island" entirely spurious. I see no logic in it whatsoever.

    Why are we so different in the UK about such things? It depresses me.

    I worry that the stop HS2 group will use the kind of arguments in this letter when actually most of them are simply trying to prevent a new railway coming through their back yard. I can understand their reluctance but why not be honest and say – look I don't want this coming near my house – instead of generating often spurious and exaggerated arguments to make their case.

    I happen to love railways and would have no problem watching fast electric trains dashing through the countryside near my house – but that's not the point. I would not expect everyone to have the same desire. My point is only that I am trying hard not to be hypocritical about this. I can understand those who worry about the impact on the lifestyle they enjoy (although usually it will be much less intrusive than they imagine), but they should be honest and say this and seek rightful compensation and get on with their life.

    It is out of character for a Tory government to commit to huge capital projects in this way without being convinced of the argument. I admire the decision and I sincerely hope it comes to fruition.”

  • Profile image for graydjames

    by graydjames

    Sunday, March 17 2013, 11:41PM

    “I know I am in a minority – at least I am if these pages are anything to go by – but I get deeply depressed by the attitude of so many – I might even say the British people generally - towards any large capital project like that of the HS2.

    Setting aside HS2 for the moment, there seems to be a general malaise about such projects, always seeing them negatively and with a sense of foreboding such that, were we to give in to this, we would see little or no progress whatsoever in our country.

    On a more specific level, it is of course important to try to get the budgets right and every project has a point at which it becomes uneconomic. I do not know enough about the HS2 project to judge whether that point has bee, or might be, reached with HS2; nor, I suspect, do any of those commenting here.

    But I do know that all progress that has occurred in transportation over the last 200 years has happened in the face of similar arguments. These things have to be looked at on a macro level. We have to think about our society in 50 or 100 years time. Is it going to be fit to meet society's needs. What would our society be like today if there had not been railways built, and railways made faster by lots of minor incremental improvements (similar to that proposed recently of the Midland Main Line for example but which was heavily criticise don these pages).

    This is almost a cultural thing. I despair of our general negative attitude. I have just returned from France. Already crisscrossed with many miles of very fast TGV trains, I passed well advanced construction work for two new lines between Tours and Bordeaux and between Brittany and the Pays de la Loire. In France these decisions are made and they get on with it – fast. I am sure there would have been some local opposition but the general attitude is different. They are proud of their rail system. They are proud that they can travel between Paris and Lyon or Lille and Bordeaux or wherever it might be in a very few hours. They look positively on the work. Of course there are exceptions, but generalising, people are content to see their government spend and subsidise in this way. The argument about France and continental Europe being bigger is wholly irrelevant. People should really think hard about this argument. Why should people not have the chance to enjoy really fast travel between London and Manchester (for example). Why is this different to enjoying fast travel between Paris and Lyon (for example) just because the distance between London and Manchester is slightly less? I see the point that we are "a small island" entirely spurious. I see no logic in it whatsoever.

    Why are we so different in the UK about such things? It depresses me.

    I worry that the stop HS2 group will use the kind of arguments in this letter when actually most of them are simply trying to prevent a new railway coming through their back yard. I can understand their reluctance but why not be honest and say – look I don't want this coming near my house – instead of generating often spurious and exaggerated arguments to make their case.

    I happen to love railways and would have no problem watching fast electric trains dashing through the countryside near my house – but that's not the point. I would not expect everyone to have the same desire. My point is only that I am trying hard not to be hypocritical about this. I can understand those who worry about the impact on the lifestyle they enjoy (although usually it will be much less intrusive than they imagine), but they should be honest and say this and seek rightful compensation and get on with their life.

    It is out of character for a Tory government to commit to huge capital projects in this way without being convinced of the argument. I admire the decision and I sincerely hope it comes to fruition.”

  • Profile image for Kohelet

    by Kohelet

    Sunday, March 17 2013, 9:47PM

    “So in a few years time will those who complain that the last labour government mispent millions say the same of this?”

  • Profile image for spalding1944

    by spalding1944

    Saturday, March 16 2013, 7:50PM

    “Anyone know where a breakdown of the money spent so far has gone. I bet there are a few families that are are better accountants than that lot.”

  • Profile image for Rod52

    by Rod52

    Saturday, March 16 2013, 1:29PM

    “Wouldn't a more sensible alternative be to spend some of the billions required for HS2 on our fast-approaching 'third world' and ever-decaying road network, the transport system of the masses? HS2 will turn out to be yet another government 'white elephant,' the product of some bureaucrats over-active imagination with access to an apparently unlimited public budget! Have 'palms been greased' to initiate this unwarranted spending?”

  • Profile image for Eastonian

    by Eastonian

    Saturday, March 16 2013, 12:27PM

    “No point whatsoever in having a poll as this project has already been decided on and the "green light" given for it's go-ahead. There is too much at stake now for the plan to be abandoned as commonsense went out of the window long ago.

    The folk I feel sorry for is those 170K who live within 0.6 miles of the route of this line. I dare say all those in favour of it, the politicians and designers who will not be blighted by this project have a completely different view to those whose lives will be affected by having their homes demolished and land carved up. Undoubtedly they will feel a little differently.

    This will not be the panacea claimed but a monumental cock-up. Folk seem to forget we are a relatively small island not a massive continent where these projects are more effective.”

  • Profile image for Graham_LE8

    by Graham_LE8

    Saturday, March 16 2013, 8:37AM

    “C'mon LM, I suggest it's time to run a poll on HS2 - perhaps the options could be:

    1) have the government woefully underestimated the cost of HS2?

    2) are the consultancy & design concerns involved so far simply making the most of the latest golden goose?

    3) both of the above”

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