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HS2 high-speed rail benefits dwindle as costs soar - MPs HS2 high-speed rail benefits dwindle as costs soar - MPs
(about 3 hours later)
The estimated benefits of the planned HS2 high-speed rail link are dwindling as costs rise, a group of MPs has said.The estimated benefits of the planned HS2 high-speed rail link are dwindling as costs rise, a group of MPs has said.
The Public Accounts Committee said the Department for Transport was failing to present a "convincing strategic case".The Public Accounts Committee said the Department for Transport was failing to present a "convincing strategic case".
The committee added that it was instead based on "fragile numbers, out-of-date data and assumptions which do not reflect real life".The committee added that it was instead based on "fragile numbers, out-of-date data and assumptions which do not reflect real life".
Transport Secretary Patrick McLoughlin insisted the case for HS2 was "absolutely clear".Transport Secretary Patrick McLoughlin insisted the case for HS2 was "absolutely clear".
'Constrained times''Constrained times'
The committee said there was no evidence the line would help economies around the country instead of attracting even more business into London The committee said there was no evidence the line would help economies around the country instead of attracting even more business into London.
A target of getting the required legislation in place by 2015 was unrealistic, the MPs added.A target of getting the required legislation in place by 2015 was unrealistic, the MPs added.
The committee also wanted to know how quickly the department would fill gaps in commercial and major project expertise among its personnel.The committee also wanted to know how quickly the department would fill gaps in commercial and major project expertise among its personnel.
The MPs' report said: "The department has yet to demonstrate that this is the best way to spend £50bn on rail investment in these constrained times."The MPs' report said: "The department has yet to demonstrate that this is the best way to spend £50bn on rail investment in these constrained times."
They said out-of-date assumptions included not taking into account that people could work on trains using laptops and other mobile devices.They said out-of-date assumptions included not taking into account that people could work on trains using laptops and other mobile devices.
Committee chairwoman Margaret Hodge said: "The pattern so far has been for costs to spiral - from more than £16bn to £21bn plus for phase one - and the estimated benefits to dwindle."Committee chairwoman Margaret Hodge said: "The pattern so far has been for costs to spiral - from more than £16bn to £21bn plus for phase one - and the estimated benefits to dwindle."
Mr McLoughlin rejected the PAC's findings and said without HS2 key rail routes would be "overwhelmed" by rising passenger numbers.Mr McLoughlin rejected the PAC's findings and said without HS2 key rail routes would be "overwhelmed" by rising passenger numbers.
"The project will free up vital space on our railways for passengers and freight, generate hundreds of thousands of jobs and deliver better connections between our towns and cities," he said."The project will free up vital space on our railways for passengers and freight, generate hundreds of thousands of jobs and deliver better connections between our towns and cities," he said.
'Plough ahead''Plough ahead'
The government will publish its own report this week arguing that HS2 will generate billions of pounds for the economy.The government will publish its own report this week arguing that HS2 will generate billions of pounds for the economy.
BBC transport correspondent Richard Westcott said the committee's conclusions were the latest in a long line of criticisms of the project.BBC transport correspondent Richard Westcott said the committee's conclusions were the latest in a long line of criticisms of the project.
Official estimates of the cost were increased by £10bn to £42.6bn earlier this year and there is opposition to HS2 in many communities along the proposed route.Official estimates of the cost were increased by £10bn to £42.6bn earlier this year and there is opposition to HS2 in many communities along the proposed route.
The Treasury's top civil servant, Sir Nicholas Macpherson, has said there is "no blank cheque" for HS2 and the National Audit Office has warned the economic benefits of the project are unclear.The Treasury's top civil servant, Sir Nicholas Macpherson, has said there is "no blank cheque" for HS2 and the National Audit Office has warned the economic benefits of the project are unclear.
The high-speed line would run between London and Birmingham from 2026 before being extended to Manchester and Leeds from 2033.The high-speed line would run between London and Birmingham from 2026 before being extended to Manchester and Leeds from 2033.
Hilary Wharf, director of campaign group HS2 Action Alliance, said: "We have no doubt that the government will continue to plough ahead with HS2 despite PAC's devastating criticism - that there is no convincing strategic case and out-of-date information and wrong assumptions were used which do not reflect real life.Hilary Wharf, director of campaign group HS2 Action Alliance, said: "We have no doubt that the government will continue to plough ahead with HS2 despite PAC's devastating criticism - that there is no convincing strategic case and out-of-date information and wrong assumptions were used which do not reflect real life.
"How much longer do they think the tax payer will listen to their protestations that this £50bn white elephant is vital to the future of the UK's economy?""How much longer do they think the tax payer will listen to their protestations that this £50bn white elephant is vital to the future of the UK's economy?"